Document:

IBIS PLAZA, LLC
                                 LEASE AGREEMENT

                                TABLE OF CONTENTS

Lease Introduction.............................................................1
Definitions - Specific.........................................................1
Definitions - General..........................................................3
Leasing and Payment of Base Rental.............................................5
Additional Rental..............................................................5
Security.......................................................................6
Occupancy......................................................................6
Relocation of Tenant...........................................................6
Use of Premises................................................................7
Parking........................................................................7
Alterations, Mechanics' Lien...................................................8
Compliance with Law............................................................8
Repair.........................................................................8
Rules and Regulations..........................................................9
Restrictions on Use............................................................9
Indemnity and Exculpation; Insurance...........................................9
Utilities.....................................................................11
Personal Property Taxes.......................................................10
Surrender of Premises.........................................................11
Surrender of Lease............................................................11
Entry by Owner................................................................11
Estoppel Certificates.........................................................11
Abandonment of Premises; Trade Fixtures.......................................12
Removal of Trade Fixtures of Tenant at End of Term............................12
Holding Over..................................................................12
Grace Period..................................................................12
Events of Default.............................................................13
Landlord's Remedies Upon Default..............................................13
Attorneys' Fees on Default....................................................15
Assignment or Subletting......................................................15
Transfer by Landlord; Release From Liability..................................16
Damage to or Destruction of Premises..........................................16
Eminent Domain................................................................16
Subordination to Mortgages and Deeds of Trust.................................17
Waiver........................................................................17
Miscellaneous.................................................................17
Signatures....................................................................20

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                                      LEASE

      This lease ("Lease") is made and entered into by and between IBIS PLAZA,
LLC, a New Jersey limited liability company, having an office at 3505-9
Quakerbridge Road, Hamilton, New Jersey 08619 ("Landlord"), and LASER
ENERGETICS, INC., a New Jersey corporation, whose address is
_________________________ ("Tenant").

                                 I. DEFINITIONS

      A. Specific Definitions. As used throughout this Lease, the following
terms have the following meanings:

      1 Landlord: IBIS PLAZA, LLC, a New Jersey limited liability company

      2 Tenant: LASER ENERGETICS, INC., a New Jersey corporation

      3 Premises: IBIS PLAZA consists of two (2) buildings, IBIS PLAZA NORTH,
3535 Quaker Bridge Road (Block 1521, Lot 114, formerly known as Block 1358, Lot
47), consisting of approximately 50,000 square feet and IBIS PLAZA SOUTH, 3525
Quaker Bridge Road (Block 1521, Lot 113, formerly known as Block 1358, Lot 46),
consisting of approximately 68,000 square feet, both of which share common
parking, ingress, egress and landscaping. The Premises are a portion of the
building commonly known as IBIS PLAZA NORTH (hereinafter the "Building") located
on the land known as Block 1521, Lots 113 and 114, Hamilton Township, Mercer
County, New Jersey (hereinafter the "Land"), more particularly described as
Suite 700 on Exhibit "A" attached hereto consisting of 5,000 Rentable Square
Feet

      4 Land: The real property on which the buildings are situated, commonly
known and designated as Block 1521, Lots 113 and 114 on the current tax and
assessment map of Hamilton Township, Mercer County, New Jersey.

      5 Purpose: Office and general administrative use.

      6     a.    Landlord's Address for Notices and All Payments:
                  IBIS Plaza, LLC
                  c/o Geo. Geiger & Associates
                  163 Nassau Street
                  Princeton, New Jersey 08540

            b.    Tenant's Address for Notices:

      7 Term: Three (3) years, commencing on May 1, 2005, and ending on April
30, 2008. In the event this Lease is extended beyond this latter date, "Term"
means the end of any such extension period, unless the context indicates
otherwise.

      8 Base Rental: The "Base Rental" is $75,000, per annum, for the first year
of the Term in monthly installments of $6,250, $77,500 per annum for the second
year of the Term in monthly installments of $6,458.33, and $80,000 per annum for

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the third year of the Term in monthly installments of $6,666.67. Notwithstanding
the foregoing, Base Rental payments shall not commence until the earlier of July
15, 2005 and the date Tenant first occupies the Premises for the conduct of its
business.

      9 Tenant's Pro Rata Share of Increase in Direct Expenses and Direct Tax
Expenses: The percentage obtained by dividing the Premises Area by the Building
Area (52,000 square feet of IBIS PLAZA NORTH) which percentage is 9.6%
multiplied by the particular expense item in question for IBIS PLAZA NORTH, and
120,000 square feet which percentage is 4.1% of IBIS PLAZA NORTH and SOUTH
combined.

      10 Additional Rental: Any Rent payable hereunder by Tenant in addition to
Base Rental, including that portion by which Tenant's pro rata share of the
Direct Expenses and Direct Tax Expenses, as these terms are hereinafter defined,
exceed the Base Operating Expenses and Direct Tax Expenses of the buildings for
each year of the Term and any renewal thereof.

      11 Security Deposit: $6,458.34

      12 Base Year: 2004

      13 Adjustment Dates: The first (1st) day of January of each year of the
Term of this Lease, commencing with the next succeeding January 1st after the
commencement of the Term.

      14 Direct Expenses:

                  a. All direct costs of operation and maintenance of the Land
and Buildings, including, but not limited to, the following costs: water and
sewer charges (other than individually metered utilities), premiums for
property, rent, liability and other insurance, as determined to be necessary by
Landlord, utilities (other than individually metered utilities), snow removal,
landscaping, parking lot maintenance, parking lot lighting, labor, any costs
incurred in the management of the buildings including management fees and
professional accounting fees associated in the preparation of statements for the
buildings' Direct Expenses and Direct Tax Expenses, utilities (electric, gas and
water) for common areas, waste removal, supplies, materials, equipment, tools,
maintenance, costs, and upkeep of all common areas, all determined in accordance
with Generally Accepted Accounting Principles.

                  b. All costs, amortized over such period as Landlord shall
reasonably determine, together with interest on such costs at the maximum legal
rate (the "Interest Rate") on the unamortized balance, of any capital
improvement made to the Land or the Building by Landlord after the Base Year
which capital improvement acts in any manner to reduce any Direct Expenses, but
not more than the amount of any such actual reduction. "Direct Expenses" shall
not include depreciation on the Building of which the Premises are part or on
equipment in such Building, loan payments, or real estate broker's commissions.

      15 Direct Tax Expenses:

                  a. All real property taxes and annual installments of real
estate improvement assessments on the Building and Land; personal property taxes
on the personal property Landlord used in the operation of the Building and
Land; taxes upon the gross or net rental income of Landlord derived from the
Building and Land, excluding, however, state and federal personal or corporate
income taxes measured by the income of Landlord from all sources, and the costs
of contesting by appropriate proceeding the amount or validity of any of such
taxes.

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                  b. The parties recognize that, during the Term of this Lease
or any extension of it, the present real property tax may be wholly or partly
replaced or supplemented by another form of tax. In such an event, there shall
be included within the definition of Direct Tax Expenses any such tax, levy, or
assessment (other than federal, state, or city and county net income taxes or
estate, gift or other similar taxes) that, now or in the future, and whether or
not now customary or within the contemplation of the parties, may be charged to
Landlord and is (i) levied upon, allocable to, or measured by the rental payable
under this Lease, (ii) levied upon the business of owning and operating rental
properties to the extent such tax is applicable to the Premises leased, (iii)
levied upon or with respect to the possession, leasing, operation, management,
or occupancy by Tenant of the Premises or any portion of it, or (iv) levied upon
or measured by the value of Tenant's personal property or leasehold
improvements.

      16 Estimate: The projection by Landlord of the amount of Direct Expenses
and Direct Tax Expenses for the stated calendar year and the amount of increase,
if any, over the estimate for the preceding calendar year. The Estimate may be
modified by Landlord from time to time.

      17 Broker(s): Fennelly Associates, Inc.

      B. General Definitions. As used throughout this Lease, the following words
have the meanings set out after such words, unless the context in which they
appear clearly indicates otherwise.

      1 Alteration. Any addition or change to, or modification of, the Premises
made by Tenant, including, without limitation, the installation of fixtures,
Tenant's trade fixtures, and Tenant's improvements as defined in this Lease.

      2 Authorized Representative. Any officer, agent, employee, or independent
contractor retained or employed by either party, acting within the authority
given him or her by that party.

      3 Damage. Death, injury, deterioration, or loss to a person or injury,
deterioration, or loss to property.

      4 Damages. Monetary compensation or indemnity that can be recovered in the
courts by any person who has suffered damage to the person, property, or rights
of such person through another's act or omission.

      5 Destruction. Any damage, as defined in this lease, to or disfigurement
of the Premises.

      6 Encumbrance. Any deed of trust, mortgage, or other written security
device or agreement affecting the Premises, and the note or other obligation
secured by it.

      7 Expiration. The coming to an end of the time specified in the Lease as
its duration, including any extension of the Term, if applicable.

      8 Good condition. The good physical condition of the Premises and each
portion of the Premises, including, without limitation, signs, windows,
appurtenances, and Tenant's personal property as defined in this Lease. "In good

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condition" means in the condition for buildings of the Building's class, neat,
broom clean, and is equivalent to similar phrases referring to physical adequacy
in appearance and for use.

      9 Hold harmless. To defend and indemnify from all liability, losses,
penalties, damages as defined in this Lease, costs, expenses, including, without
limitation, attorneys' fees, causes of action, claims, or judgments arising out
of or related to any damage, as defined in this Lease, to any person or
property.

      10 Law. Any judicial decision, constitution, statute, ordinance,
resolution, regulation, rule, administrative order, or other requirement of any
municipal, county, state, federal, or other government agency or authority
having jurisdiction over the parties or the Premises, or both, in effect either
at the time of execution of the Lease or at any time during the Term, including,
without limitation, any regulation or order of a quasi-official entity or body
such as Board of Fire Examiners or public utilities.

      11 Lender. Beneficiary, mortgagee, secured party, or other holder of an
encumbrance, as defined in this Lease.

      12 Lien. Charge imposed on the Premises by someone other than Landlord.
Most of the liens referred to in this Lease are mechanics' liens.

      13 Maintenance. Repairs, replacement, repainting and cleaning.

      14 Person. One or more human beings or legal entities or other artificial
persons, including, without limitation, partnerships, corporations, trusts,
estates, associations, and any combination of human beings and legal entities.

      15 Provision. Any term, agreement, covenant, condition, clause,
qualification, restriction, reservation, or other stipulation in the lease that
defines or otherwise controls, establishes, or limits the performance required
or permitted by either party.

      16 Rent. Base Rental, Additional Rental, Prepaid Rent, security deposit,
and other similar charges payable by Tenant to Landlord.

      17 Restoration. Reconstruction, rebuilding, rehabilitation, and repairs
that are necessary to return destroyed portions of the Premises and other
property to substantially the same physical condition as they were in
immediately before the destruction.

      18 Successor. Any assignee, transferee, personal representative, heir, or
other person or entity succeeding lawfully, and pursuant to the provisions of
this Lease, to the rights or obligations of either party.

      19 Tenant's improvements. Any addition to or modification of the Premises
made by Tenant before, at, or after commencement of the Term, including, without
limitation, fixtures, but not including Tenant's trade fixtures, as defined in
this Lease.

      20 Tenant's personal property. Tenant's equipment, furniture, merchandise,
and movable property placed in the Premises by Tenant, including Tenant's trade
fixtures, as defined in this Lease.

      21 Tenant's trade fixtures. Any property installed in or on the Premises
by Tenant for purposes of trade, manufacture, ornament, or related use.

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      22 Termination. The ending of the Term for any reason before expiration,
as defined in this Lease.

                     II. LEASING AND PAYMENT OF BASE RENTAL

      A. Landlord leases to Tenant and Tenant rents from Landlord the Premises
for the Term and for the Rent as defined in Article I. Tenant agrees to pay to
Landlord each installment of Base Rental, in advance on the first (1st) day of
each calendar month of the Term with the Rent for the first (1st) month of the
Term to be paid upon the execution of this Lease. If the Term commences or
expires on a day other than the first/last day of a calendar month, the Rent
shall be prorated on a per diem basis of an assumed thirty (30) day month.

      B. The Rent shall be paid by Tenant to Landlord, without deduction or
offset, in lawful money of the United States of America to IBIS Plaza, LLC, c/o
Geo. Geiger & Associates, 163 Nassau Street, Princeton, New Jersey 08540, or at
such other place as Landlord may from time to time designate in writing.

      C. No security or guaranty which may now or subsequently be furnished
Landlord for the payment of the Rent or for performance by Tenant of the other
covenants or conditions of this Lease shall in any way be a bar or defense to
any action in unlawful detainer, or for the recovery of the Premises, or to any
action which Landlord may at any time commence for a breach of any of the
covenants or conditions of this Lease.

      D. If any installment of Base Rental or Additional Rent is not paid within
three (3) days after its due date, Tenant shall owe a late charge of five
percent (5%) of the overdue amount, due on the next Base Rental payment date.
The imposition of a late charge shall be without prejudice to any other remedy
Landlord may have for nonpayment of Rent.

                             III. ADDITIONAL RENTAL

      Tenant shall pay to Landlord as Additional Rent its pro rata share of
increase in Direct Expenses and Direct Tax Expense over such expenses incurred
for the Base Year. Such payments shall be made in monthly installments on the
first day of each month, based upon Landlord's Estimate. Landlord shall endeavor
to give to Tenant on or before the Adjustment Date a final statement of any
increase in Additional Rental payable by Tenant under this Lease, but failure by
Landlord to give such a statement by such a date shall not constitute a waiver
by Landlord of its right to require an increase in Additional Rental. If
Tenant's Additional Rental payable under this Lease as shown on the Adjustment
Date statement is greater or less than the total amounts actually billed to and
paid by Tenant pursuant to the Estimate during the year covered by such
statement, a payment shall be made by Landlord or Tenant, whichever the case may
be, within thirty (30) days.

      Even though the Term has expired or terminated, and Tenant has vacated the
Premises when the final determination is made of Tenant's pro rata share of
increase in Direct Expenses and Direct Tax Expense for the year in which this
Lease expires or terminates, Tenant shall immediately pay any increase due over
the estimate, and, conversely, any overpayment made in the event such Expenses
decrease shall be immediately refunded by Landlord to Tenant.

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                                  IV. SECURITY

      Tenant shall pay to Landlord upon the execution of this Lease the Security
Deposit required in Article IA(11). Landlord shall not be required to segregate
the Security Deposit from its other funds and no interest shall accrue or be
payable with respect to it.

                                  V. OCCUPANCY

      A. The Premises are leased to Tenant in Their present "AS IS" condition.

      B. In the event that the Premises are not made available for Tenant's
occupancy at the time of the commencement of the Term fixed by this Lease, this
Lease shall not be affected thereby, but in such event no rent shall be due
hereunder until Landlord shall have made the Premises available or Tenant shall
have in fact occupied the Premises. Subject to the approval of its construction
plans by Landlord as provided in this Lease, Tenant may occupy the Premises at
any time after the execution and delivery of this Lease by both parties for the
purpose of performing its fit-up of the Premises, subject to all of the terms of
this Lease, except for the payment of rent.

      C. Landlord agrees to give to Tenant an allowance of up to $2,500 to cover
the cost of installation of a double emergency door at the rear of the Premises,
as per code. Such allowance shall be payable within thirty (30) days after
Landlord's receipt of the certificate of occupancy for the Premises and a paid
receipt from Tenant's contractor.

                           VI. [Intentionally Omitted]

                            VII. RELOCATION OF TENANT

      Notwithstanding anything herein to the contrary, Landlord does hereby in
all cases retain the right and power to relocate Tenant within the Building or
in Ibis Plaza North in space which is comparable to the Premises and suited to
the Tenant's use, such right and power to be exercised reasonably and such
relocation to be made at Landlord's sole cost and expense. Landlord shall not be
liable or responsible for any claims, damages, or liabilities in connection with
or occasioned by such relocation. Landlord's reasonable exercise of such right
and power shall include, but shall in no way be limited to, a relocation to
consolidate the rentable area occupied in order to provide Landlord services
more efficiently, or a relocation to provide contiguous vacant space to a
prospective tenant.

                              VIII. USE OF PREMISES

      The leased Premises, or any part thereof, shall not be used by anyone
except the Tenant, its invitees, customers and employees and shall be used or
permitted to be used for no use other than the Use described in Article IA(5)
above.

      Tenant acknowledges and agrees with Landlord that the Premises should be
maintained and preserved consistent with a prestigious and first class office
Building and that its special character arising from its location should be
specifically protected and preserved. Tenant therefore represents that it is not
leasing the Premises, and it will not use such Premises , for any purpose other
than that provided in this Lease. Tenant further agrees that Landlord reasonably
may refuse to consent to the assignment of this Lease or the subletting of the
Premises for any of the following prohibited uses: an educational facility of
any type including correspondence schools, employment agencies, model agencies,
spas, health, physical fitness or exercise salons, small loan offices, real
estate brokers, residential land development offices, dentist or other

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professions or businesses that by their nature tend to generate excess customer
traffic or any other use which Landlord in good faith determines will or is
likely to demean the character of the Building or its environment, and such
refusal shall not be considered unreasonable.

      Moreover, Tenant specifically agrees that Landlord's leasing of any
portion of the Building of which the Premises are a part for any of the
foregoing prohibited uses shall not constitute or be deemed to constitute a
waiver of Landlord's right to prohibit Tenant from assigning or subletting the
leased Premises or any part thereof for any such prohibited use.

      Tenant will not, without the prior written consent of Landlord, permit the
preparation, dispensing or serving of any beverages and/or foods within the
leased Premises, except that this shall not prohibit the consumption of hot and
cold beverages or the consumption of sandwiches.

      Tenant shall not use the Premises so as to subject the Premises to the
provisions of the Industrial Site Recovery Act, N.J.S.A. 13:1k-6 et seq.
("ISRA") nor shall Tenant permit any hazardous substances or hazardous waste as
defined in ISRA, the Spill Compensation and Control Act (N.J.S.A. 58:10-23.11 et
seq.), the Resource Conservation and Recovery Act (42 U.S.C. sec. 6901 et seq.),
the Comprehensive Environmental Response Compensation and Liability Act (422
U.S.C. sec. 9601 et seq.) or any other State or Federal environmental law or
regulation to be brought to the Premises or the property of Landlord on which
the Premises are located (collectively, "Environmental Laws").

      Tenant shall at all times indemnify, protect, defend (with counsel
selected by Landlord) and hold harmless Landlord and Landlord's employees,
officers, directors, shareholders, affiliates, partners, agents, professionals
and consultants (collectively, the "Indemnitees") against and from any and all
claims, suits, liabilities, actions, debts, damages, costs, losses, obligations,
judgments, charges and expenses, including sums paid in settlement of claims, of
any nature whatsoever suffered or incurred by any of the Indemnitees whether
based on Tenant's operation of the Premises, Tenant's negligence, Tenant's
willful misconduct or on other acts or omissions of Tenant, with respect to:

            A. The actual or suspected discharge by Tenant (or by any of
Tenant's agents, servants, employees, invitees, guests, subtenants (if any)
licensees, or contractors) of Hazardous Substances, as defined by Environmental
Laws, or the threat of a discharge by Tenant (or by any of Tenant's agents,
servants, employees, invitees, guests, subtenants (if any) licensees, or
contractors) of any Hazardous Substances in, upon, under or affecting the Land
or the Building.

            B. The cost of removal or remedial action incurred, any response
cost incurred by any person or damages from injury to, destruction of, or loss
of natural resources, including reasonable cost of assessing such injury,
destruction or loss, incurred pursuant to Environmental Laws;

            C. Liability for personal injury or property damage, including,
without limitation, damages assessed with the maintenance of a public or private
nuisance or for the carrying on of an abnormally dangerous activity; and/or

            D. Any other environmental matter affecting the Land or the
Building; to the extent any of the above matters affecting the Land or the
Building arise by the act or wrongful omission of Tenant, or any of Tenant's
agents, servants, employees, invitees, guests, subtenants (if any) licensees, or
contractors). Tenant's obligations under this Article shall arise upon the
discovery of, or the threat or suspected presence of, any Hazardous Substance,
whether or not any other federal agency or state or local or environmental
agency or political subdivision or any court, administrative panel or tribunal
has taken or contemplates taking action in connection with the presence of any
Hazardous Substances.

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      Tenant shall not, directly or indirectly, make any use of the Premises
which may be prohibited by any Environmental Laws, which may be dangerous to
person or property, or which may constitute or create a nuisance, or which may
fail or comply with or violate the provisions or conditions of any permit held
by Landlord to Tenant with respect to the Land or the Building including,
without limitation, any such permit governing the use, contamination, pollution
or conservation of air, water or land or the protection of the environment or of
the use, storage, treatment or disposal of toxic or hazardous substances
("Environmental Permits"), or which may jeopardize the continuation or renewal
of any such Environmental Permit, or which may be deemed extra-hazardous in any
respect, or which may jeopardize any insurance coverage or require additional
insurance coverage for Landlord.

                                   IX. PARKING

      Landlord assigns to Tenant a number of 17 parking spaces. The spaces that
the Tenant is entitled to shall be located in Landlord's outside parking lot,
(the "Outside Parking Area"). These spaces will not be specifically designated
for the exclusive use of the Tenant, however, but rather shall be available to
all tenants of the Building. The use of parking spaces assigned to Tenant shall
be subject to such rules and regulations as may be established by Landlord,
including all signs and notices posted by Landlord in the Outside Parking Area,
or roadways leading thereto. Landlord reserves the right to designate all spaces
in the Outside Parking Area as reserved for the tenants of IBIS PLAZA NORTH and
SOUTH. Tenant agrees to comply with any law, regulation or ordinance regarding
"car pooling" of employees.

                           X. [Intentionally Omitted]

                        XI. ALTERATIONS, MECHANICS' LIENS

      Tenant shall not make, directly or indirectly, any alterations without
first obtaining the written consent of Landlord. Any alteration shall become at
once a part of the realty and belong to Landlord subject, however, to Landlord's
right to require removal and restoration as provided in Article XIX of this
Lease. Tenant shall keep the Land and the Building free from any liens arising
out of any work performed, material furnished, or obligations incurred by
Tenant. Tenant agrees that if Tenant shall make any alterations of the Premises,
Tenant will not take such action until five (5) days after receipt by Tenant of
the written consent of Landlord required by this paragraph. Consent for such
alterations shall not be unreasonably withheld by Landlord, provided that such
alteration does not affect the structure, exterior or operating systems of the
Building. The consent by Landlord to an alteration shall in no event constitute
a consent by Landlord to the imposition of any lien on the Land or the Building.
Tenant's preliminary plans for the fit-up of the Premises have been approved by
Landlord and are attached hereto as Exhibit B. Tenant's construction plans shall
be subject to Landlord's approval and shall be substantially in accordance with
the preliminary plans. Tenant shall be obligated to secure all building permits
and certificates of occupancy for its work in the Premises and shall not occupy
the Premised for the conduct of its business until a certificate of occupancy
has been issued. If Tenant has not completed its fit-up of the Premises in
accordance with the preliminary and construction plans and received a
certificate of occupancy for the Premises by December 31, 2005, the Base Rental
for the entire Term shall be retroactively increased to $87,500 per annum,
payable in monthly installments of $7,291.67. The retroactive increase in Base
Rental for the period from the commencement of the Term until December 31, 2005
shall be payable in full by Tenant to Landlord on or before February 1, 2006.

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                            XII. COMPLIANCE WITH LAW

      Tenant shall, at its sole cost and expense, comply with all laws
pertaining to Tenant's use of the Premises, and shall faithfully observe all
laws in the use of the Premises. The judgment of any court of competent
jurisdiction, or the admission of Tenant in any action or proceeding against
Tenant, whether Landlord be a party to it or not, that Tenant has violated any
law in the use of the Premises shall be conclusive of that fact as between
Landlord and Tenant. Without limiting the generality of the foregoing, the
duties of Tenant under this provision shall include the making of all such
alterations of the Premises as may be required by law by reason of the
particular manner or mode of use of the Premises by Tenant, or occasioned by
reason of the failure of Tenant to maintain or repair the Premises as required
under this Lease.

                                  XIII. REPAIR

      By taking possession of the Premises leased under this Lease, Tenant
accepts the Premises as being in good sanitary order, condition, and repair.
Tenant's acceptance without written exception also constitutes a confirmation by
the Tenant that all Landlords' work has been done in conformance with the Work
Letter without defect. Tenant, at Tenant's sole cost and expense, shall keep the
Premises and every part of it in good condition and repair, damage to it by
fire, earthquake, act of God or the elements excepted. Tenant waives all rights
to make repairs at the expense of Landlord as provided in any law, statute, or
ordinance now or subsequently in effect. Upon the expiration or earlier
termination of the Term, Tenant shall surrender the Premises to Landlord in the
same condition as when received, ordinary wear and tear and damage by fire,
earthquake, act of God or the elements excepted. No representations respecting
the conditions of the Premises or the Building have been made by Landlord to
Tenant except as specifically stated in this Lease.

                           XIV. RULES AND REGULATIONS

      Tenant shall faithfully observe and comply with the rules and regulations
promulgated by the Landlord and all reasonable modifications of and additions to
it from time to time put into effect by Landlord. Landlord shall not be
responsible to Tenant for the nonperformance by any other tenant or occupant of
the Building of any of such rules and regulations.

                             XV. RESTRICTIONS ON USE

      No use shall be made or permitted to be made of the Premises, nor acts
done, that will increase the existing rate of insurance upon the Building, or
cause a cancellation of any insurance policy covering such Building, or any part
of it, nor shall Tenant sell, or permit to be kept, used, or sold, in or about
the Premises any article that may be prohibited by the standard form of fire
insurance policies. Tenant shall, at Tenant's sole cost and expense, comply with
any and all reasonable requirements, pertaining to the Premises, of any
insurance organization or company necessary for the maintenance of reasonable
fire and public liability insurance covering such Building and appurtenances.

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      Tenant shall not do or permit anything to be done in or about the Premises
which will in any way obstruct or interfere with the rights of other tenants or
occupants of the Building or injure or annoy them, or use or allow the Premises
to be used for any immoral, unlawful, or objectionable purposes. No loudspeakers
or other similar device, system, or apparatus, which can be heard outside the
Premises, shall, without the prior written approval of Landlord, be used in or
at the Premises. Tenant shall not commit, or suffer to be committed, any waste
upon the Premises, or any nuisance, public or private, or other act or thing of
any kind that may disturb the quiet enjoyment or cause unreasonable annoyance of
any other tenant in the Building.

                   XVI. INDEMNITY AND EXCULPATIONS; INSURANCE

      A. Exculpation and Indemnity of Landlord. Landlord shall not be liable to
Tenant for any damage to Tenant or Tenant's property unless caused by the
Landlord's intentional act, and Tenant waives all claims against Landlord for
damage to person or property from any cause. Tenant shall hold Landlord harmless
from all damages arising directly or indirectly out of any damage or injury to
any person or property occurring in, on, or about the Premises and the
Buildings, unless attributable to the Landlord's intentional act.

      B. Public Liability and Property Damage Insurance. Tenant at its cost
shall maintain public liability insurance with liability limits of not less than
two million dollars and 00/100 cents ($2,000,000.00) per occurrence insuring
against all liability of Tenant and its authorized representatives arising out
of and in connection with Tenant's use or occupancy of the premises.

      All public liability insurance shall insure performance by Tenant of the
indemnity provisions of this section. Landlord, its agents and mortgagee, if
any, shall be named as additional insureds; the policy shall be primary
insurance as far as Landlord is concerned.

      Tenant shall also carry property damage insurance in an amount equal to
the full replacement cost of its personal property, trade fixtures and
alterations made to the Premises by Tenant.

      C. Increase in Amount of Public Liability and Property Damage Insurance.
Not more frequently than every three (3) years, if, in the reasonable opinion of
Landlord or its lender, the amount of public liability insurance coverage at
that time is not adequate, Tenant shall increase the insurance coverage as
reasonably required by Landlord.

      D. Waiver of Subrogation. The parties release each other, and their
respective authorized representatives, from any claims for damage or injury to
the Premises and the Building and other improvements in which the Premises are
located, and to the fixtures, personal property, Tenant's improvements, and
alterations of either Landlord or Tenant in or on the Premises and the Building
and other improvements in which the Premises are located that are caused by or
result from risks insured against under any fire and extended coverage insurance
policies carried by the parties and in force at the time of any such damage.
Tenant shall cause each insurance policy obtained by it to provide that the
insurance company waives all right of recovery by way of subrogation against
Landlord in connection with any damage covered by any policy.

                                       9
<PAGE>

      E. Other Insurance Matters. All the insurance required under this Lease
shall:

      1 Be issued by insurance companies authorized to do business in the State
of New Jersey, with a rating of at least an A-XV status as rated in the most
recent edition of Best's Insurance Reports.

      2 Be issued as a primary policy.

      3 Contain an endorsement requiring thirty (30) days written notice from
the insurance company to both parties and Landlord's lender before cancellation
or change in the coverage, scope, or amount of any policy.

      4 Be renewed not less than twenty (20) days before expiration of the term
of the policy.

      Each policy, or a certificate of the policy, together with evidence of
payment of premiums, shall be deposited with Landlord at the commencement of the
Term and on each renewal of the policy.

                                 XVII. UTILITIES

      Landlord and Tenant hereby agree that all utilities (gas, electric, water
and sewer) supplied to the Premises are separately metered where feasible and
Tenant shall pay the cost of same. In the event a utility is not separately
metered, the Tenant agrees to pay the Landlord for all utilities (gas, electric,
water and sewer) it consumes equivalent to its proportionate share (as set forth
in Paragraph I.A.9. above) for IBIS PLAZA NORTH. This charge shall be paid by
the Tenant on a quarterly basis as Additional Rent and will not be considered
part of the Direct Expenses. Landlord is obligated under this Lease to provide
all water, sewer, electric and HVAC systems and equipment as required for
general office purposes. Landlord shall not be liable for, and Tenant shall not
be entitled to, any abatement or reduction of rent by reason of Landlord's
failure to furnish any of the foregoing when such failure is caused by accident,
breakage, repairs, strikes, lockouts, or other labor disturbances or labor
disputes of any character, or by any other cause, similar or dissimilar, beyond
the reasonable control of Landlord. Landlord shall not be liable under any
circumstances for loss of business or injury to property, however occurring,
through or in connection with, or incidental to, failure to furnish any of the
foregoing. Wherever heat-generating machines or equipment are used in the
Premises by Tenant which affect the temperature otherwise maintained by the
building air-conditioning system, Landlord shall have the right to install
supplementary air-conditioning units in the premises and its cost, including the
cost of installation and the cost of operation and maintenance, shall be paid by
Tenant to Landlord forthwith upon demand. Tenant shall pay for all services and
utilities not furnished by Landlord.

                         XVIII. PERSONAL PROPERTY TAXES

      All property taxes assessed by any governmental body upon Tenant's
personal property and Tenant's improvements shall be paid by Tenant and, should
these taxes be applied in any manner to the real property taxes, Tenant, upon
demand, will pay such personal property taxes to Landlord, who in turn will pay
them to the proper tax collector.

                                       10
<PAGE>

                           XIX. SURRENDER OF PREMISES

      Tenant agrees that prior to the expiration of the Term of the Lease, or
upon the earlier termination of the Lease, or upon Tenant's unlawful abandonment
of the Premises, whichever occurs first, Tenant will leave the Premises in the
same condition as when received, reasonable wear and tear, loss by fire or other
casualty, and acts of God excepted, and if Tenant made any alteration or
improvement of the Premises, with or without Landlord's consent as required by
the terms of this Lease, Tenant will in all cases restore the Premises
substantially to their original condition as of the inception of the term of the
Lease, wear and tear, loss by fire or other casualty, and acts of God excepted,
unless Landlord has expressly set forth in writing that a particular alteration
or improvement shall not be removed.

                             XX. SURRENDER OF LEASE

      The voluntary or other surrender of this Lease by Tenant, accepted by
Landlord, or the mutual cancellation of this Lease, shall not work a merger and
shall, at the option of Landlord, terminate all or any existing subleases or
subtenancies or operate as an assignment to Landlord of any or all of such
subleases or subtenancies.

                               XXI. ENTRY BY OWNER

      Tenant shall permit Landlord and its authorized representatives to enter
the Premises at all reasonable times for purposes of inspection, maintenance, or
making repairs or additions to, or alterations of, any other portion of the
buildings, including the erection and maintenance of such scaffolding, canopies,
fences, and props as may be required, or for the purpose of posting notices of
non-liability for alterations or repairs, without any liability to Tenant for
any loss of occupation or quiet enjoyment of the Premises occasioned by such
acts, and Tenant shall permit Landlord, at any time within six (6) months prior
to the expiration of this Lease, to list and show such Premises during normal
business hours or otherwise and advertise same for rental within the Building or
otherwise at sole option of Landlord.

                           XXII. ESTOPPEL CERTIFICATES

      Tenant shall at any time and from time to time, upon not less than ten
(10) days prior written request by Landlord, execute, acknowledge, and deliver
to Landlord a statement in writing certifying that this Lease is unmodified and
in full force and effect, or if there has been any modification of this Lease
that it is in full force and effect as modified and stating the modification or
modifications, and that there are no defaults existing, or if there is any
claimed default, stating its nature and extent, and stating the dates to which
the rent and other charges have been paid in advance. It is expressly understood
and agreed that any such statement delivered pursuant to this section may be
relied upon by any prospective purchaser of the estate of Landlord, or any
lender or prospective assignee of any lender on the security of the Premises or
the property of which it is a part, or any part of it, and by any third person.

                 XXIII. ABANDONMENT OF PREMISES; TRADE FIXTURES

      Tenant shall not vacate or abandon the Premises at any time during the
Term. If Tenant abandons, vacates, or surrenders the Premises, or is
dispossessed by process of law, or otherwise, any personal property belonging to
Tenant and left on the Premises shall be deemed to be abandoned, and, at the
option of Landlord, such property may either be removed and stored in any public
warehouse or elsewhere at the cost of and for the account of Tenant.

                                       11
<PAGE>

            XXIV. REMOVAL OF TRADE FIXTURES OF TENANT AT END OF TERM

      If Tenant shall fully and faithfully perform all of Tenant's obligations
under this Lease, then Tenant may, and upon the request of Landlord shall,
remove all trade fixtures installed in the Premises by Tenant at the expiration
or termination of the Term of this Lease, or any renewal of this Lease, provided
that Tenant shall repair any damage to the Premises caused by such removal.

                          XXV. [Intentionally Omitted]

                               XXVI. HOLDING OVER

      Any holding over after the expiration of the Term of this Lease without
the consent of Landlord shall be construed to be a tenancy at sufferance at a
Rent equal to TWICE (2 times) the Rent payable as if this Lease were still in
force and effect. In addition to liability for such increased Rent, Tenant shall
also indemnify Landlord from any claim or liability, arising out of Tenant's
failure to vacate the Premises.

                               XXVII. GRACE PERIOD

      A. Except as provided below, no default or breach of any of the covenants
and conditions shall exist on the part of Landlord or Tenant until the party
claiming default or breach shall serve upon the other a written notice, as
provided in this Lease, specifying with particularity the alleged default or
breach, and the other party shall fail to perform or observe such a covenant or
condition, as the case may be, within thirty (30) days after the serving of such
notice on it ("Grace Period").

      B. The Grace Period for Rent payments shall be three (3) days without any
notice requirement. The Grace Period shall not apply to breaches of Tenant that
affect the compliance with laws, restrictions on use, alterations, insurance,
Estoppel Certificate, insolvency, subletting and other "time sensitive" breaches
in which case time shall be of the essence.

      C. If either party shall be delayed or prevented from the performance of
any act required by this Lease by reason of acts of God, strikes, lockouts,
labor troubles, inability to procure materials, restrictive laws, or other
cause, without fault and beyond the reasonable control of the party obligated
(financial inability excepted), performance of such act shall be extended for a
period equivalent to the period of such delay, provided, however, that nothing
in this section shall excuse Tenant from the prompt payment of any Rent or other
charge required of Tenant, except as may be expressly provided elsewhere in this
Lease.

                            XXVIII. EVENTS OF DEFAULT

      Each of the following events shall constitute an Event of Default of
Tenant hereunder:

                                       12
<PAGE>

      A. If the Base Rental or any part thereof or the Additional Rent or any
part thereof due hereunder shall be unpaid when due.

      B. If the Leased Premises shall be vacated, deserted, or abandoned during
the term hereof for a period for three (3) consecutive months.

      C. If Tenant, contrary to the provisions of this Lease, shall sell, assign
or mortgage this Lease, or let or underlet the Leased Premises or any part
thereof, or use or permit the same to be used for any purpose other than herein
permitted.

      D. If Tenant shall make an agreement of composition or an assignment for
the benefit of creditors, or if a receiver is applied for or appointed for
Tenant, or if there be filed a petition in bankruptcy or insolvency or for an
arrangement or reorganization by or against Tenant, or consented to by Tenant,
or if Tenant is adjudicated a bankrupt or is adjudged to be insolvent, or if
Tenant is advertised to be sold out by any sale under process of law, or if the
assets or property of Tenant in the Leased Premises shall be attached or levied
upon, or if this Lease or the estate of Tenant shall pass to another by virtue
of court proceedings, writ of execution or operation of law.

      E. If Tenant fails to comply with any other provision of this Lease which
imposes an obligation upon the Tenant, or if Tenant otherwise violates any
provision or condition of this Lease.

                     XXIX. LANDLORD'S REMEDIES UPON DEFAULT

      A. Following the occurrence of any Event of Default, the Landlord may
exercise any one or more of the following remedies, in addition to all other
remedies provided in this Lease and by law or in equity:

            1. Landlord may perform, on behalf and at the expense of Tenant, any
obligation of Tenant under this Lease which Tenant has failed to perform and of
which (except in an emergency) Landlord shall have given Tenant notice, the cost
of which performance by Landlord, together with interest thereon at the Interest
Rate from the date of such expenditure, shall be deemed additional rent and
shall be payable by Tenant to Landlord upon demand;

            2. Upon expiration of any Grace Period, Landlord may terminate this
Lease by delivering notice to Tenant, whereupon this Lease and the term and
estate hereby granted shall expire and terminate and all rights of the Tenant
under this Lease shall expire and terminate, but the Tenant shall remain liable
for damages as hereinafter set forth. Notwithstanding the foregoing, the
Landlord may institute dispossess proceedings for non-payment of rent, or other
proceedings to enforce the payment of rent without giving the notice of
termination.

            3. Whether before or after a termination as provided in (2), above,
Landlord, without further notice and with no liability to Tenant, may repossess
the Premises, by summary proceedings, ejectment or otherwise, and may remove
Tenant and all other persons and all property from the Premises.

            4. Landlord may exercise any and all other legal and/or equitable
rights or remedies which it may have.

                                       13
<PAGE>

      B. In the event of termination or repossession following an Event of
Default, Tenant shall pay to Landlord all Base Rental and Additional Rent
(including, but not limited to, the reasonable attorneys' fees incurred by
Landlord in the enforcement of its rights with respect to such Default) due
through the earlier of the date of termination or repossession. Further Tenant,
with respect to that period of time beginning on the day after the date of such
termination or repossession and continuing through the end of what would have
been the Term in the absence of termination and whether or not the Premises or
any part have been re-let, is liable to Landlord for, and shall pay to Landlord,
as liquidated and agreed "Current Damages" (and not as a penalty) for the Event
of Default:

            1. the Base Rental and Additional Rent payable by Tenant or which
would be payable if this Lease had not terminated, plus all Landlord's expenses
in connection with any re-letting, including, without limitation, repossession
costs, brokerage commissions, alteration costs, expenses of preparation for such
re-letting, and reasonable attorneys' fees; less

            2. the net proceeds, if any, of any re-letting on account of Tenant
pursuant to this Article. If the Premises have been re-let with additional
premises and/or have been re-let for a term which extends beyond the end of what
would have been the Term for the same in the absence of termination, the net
proceeds, if any, of re-letting shall be prorated.

            Tenant shall pay Current Damages to Landlord monthly on the days on
which the Base Rental and Additional Rent would have been payable if the Lease
were not terminated, and Landlord is entitled to recover the same from Tenant
each month.

      C. After termination, as described above, whether or not Landlord has
collected Current Damages, Tenant shall pay to Landlord, on demand, as
liquidated and agreed "Final Damages" (and not as a penalty) for the Event of
Default and in lieu of all Current Damages beyond the date of demand, an amount
equal to the present cash value on the date of demand of the Base Rental and
Additional Rent which would have been payable from the date of demand for what
would have been the unexpired Term with respect to each portion of the Premises
if it had not been terminated, minus the present cash value of the fair rental
value of the Premises for the unexpired Term, plus the Base Rental and
Additional Rent due through the earlier of the date of termination or
repossession, and the Current Damages up to the date of demand, which remain
unpaid.

      If any statute or rule of law governing a proceeding in which Final
Damages are to be proved validly limits the Final Damages to an amount less than
that provided for herein, Landlord is entitled to the maximum amount allowable
under the statute or rule of law. The discount rate of interest shall be six
percent (6%) per annum.

                         XXX. ATTORNEYS' FEES ON DEFAULT

      If Landlord shall obtain legal counsel to bring an action against the
Tenant for eviction or removal by reason of the breach of any covenant,
warranty, or condition of this Lease, or otherwise arising out of this Lease,
Tenant, if unsuccessful shall pay to the Landlord as the "prevailing party"
reasonable attorneys' fees.

                                       14
<PAGE>

                         XXXI. ASSIGNMENT OR SUBLETTING

      A. Tenant shall not assign this Lease or any interest in it, and shall not
sublet the Premises or any part of it or any right or privilege appurtenant to
this Agreement or permit any other person, the agents and servants of Tenant
excepted, to occupy or use the Premises or any portion of it without first
receiving the written consent of Landlord. Landlord agrees not to unreasonably
withhold such consent but may, in lieu of granting such consent, terminate this
Lease. A consent to one assignment, subletting, or occupation and use by another
person shall not be deemed to be a consent to any other or further assignment,
subletting, or occupation, nor a waiver of the provisions of this section,
except as to the specific instance covered by it. Any such assignment,
subletting, or occupation without consent shall be void and shall at the option
of Landlord terminate this Lease. This Lease and any interest in it shall not be
assignable as to the interest of Tenant by operation of law without the written
consent of Landlord.

      B. Any transfer of shares or other ownership interests by Tenant by reason
of which the present shareholders or other equity holders own less than
fifty-one percent (51%) of the outstanding equity of Tenant or a surviving
entity shall constitute an assignment of this Lease subject to the provisions
limiting assignment.

      C. Except as otherwise expressly provided in this Lease, Tenant shall
remain fully liable on this Lease and shall not be released from performing any
of the terms, covenants, and conditions of this Lease by reason of any
assignment or sublease.

      D. Tenant immediately and irrevocably assigns to Landlord, as security for
Tenant's obligations under this Lease, all rent from any subletting of all or a
part of the Premises as permitted by this Lease, and Landlord, as assignee and
as attorney-in-fact for Tenant, or a receiver for Tenant appointed on Landlord's
application, may collect such rent and apply it toward Tenant's obligations
under this Lease, except that, until the occurrence of an act of default by
Tenant, Tenant shall have the right to collect such rent.

      E. In no event shall Tenant assign this Lease or sublet the Premises, or
any portion of it, to any then-existing Tenant of the Buildings on the Land.

      F. Tenant agrees to reimburse Landlord for all expenses and time,
including attorneys' fees, incurred by Landlord in connection with any requested
and permitted assignment or subleasing. This sum shall be in addition to the
attorneys' fees and costs allowed under this Lease.

      G. In consideration of Landlord's consent to an assignment or sublease,
Tenant agrees to pay to Landlord as and when received by Tenant, one hundred
percent (100%) of any rent or consideration received by Tenant from any such
assignee or subtenant which exceeds the amount of Base Rental payable hereunder
by Tenant to Landlord.

               XXXII. TRANSFER BY LANDLORD; RELEASE FROM LIABILITY

      In the event Landlord shall sell or transfer the Land or any part of it,
and as a part of such transaction shall assign its interest as Landlord in and
to this Lease, then from the effective date of such a sale, assignment, or
transfer Landlord shall have no further liability under this Lease to Tenant
except as to any matters of liability that have accrued and are unsatisfied and
of which the Landlord has been given written notice as of such a date, it being
intended that the covenants and obligations contained in this Lease on the part
of Landlord shall be binding upon Landlord and its successors and assigns only
during their respective periods of ownership of the Land and any undisclosed
claims or causes of action of the Tenant are waived and released.

                                       15
<PAGE>

                  XXXIII. DAMAGE TO OR DESTRUCTION OF PREMISES

      In the event of a partial destruction of the Premises from any cause
covered by Landlord's standard fire and extended coverage insurance, Landlord
shall immediately repair such destruction, provided the cost of repair does not
exceed the insurance proceeds and such repairs can be made within ninety (90)
days, but such partial destruction shall in no way annul or void this Lease, and
Tenant shall not be entitled to a proportionate reduction of rent while such
repairs are being made. If such partial destruction was caused by any risk not
covered by Landlord's insurance, or if the cost of repair exceeds the insurance
proceeds payable, Landlord may, at its option, make such repairs, provided the
repairs can be made within ninety (90) days, and the Lease shall remain in full
force and effect. If the Landlord does not elect to make repairs it is not
obligated to make, or if such repairs cannot be made within ninety (90) days, or
if such repairs cannot be made under law, this Lease may be terminated at the
option of either party. In the event the Building is destroyed to the extent of
not less than thirty-three and one-third percent (33 1/3%) of the replacement
cost of it, Landlord may elect to terminate this Lease, whether the Premises are
injured or not and without liability to Tenant. A total destruction of the
Premises, or of the Building, shall terminate this Lease. In no event shall
Landlord be obligated to repair or replace any property which Tenant is
obligated to insure under Article XVI(B). In the event of any dispute between
Landlord and Tenant relative to the provisions of this section, they shall
submit their dispute to arbitration in accordance with the rules of the American
Arbitration Association. The arbitration shall take place in the State of New
Jersey. New Jersey law shall apply. A written decision is to be required and
requested from the Arbitrator by both parties. The arbitration shall be final
and binding upon both Landlord and Tenant. If the American Arbitration
Association and/or the Arbitrator refuses to provide the parties with a written
opinion then this clause requiring Arbitration shall be void and of no force and
effect. The cost of such arbitration shall be borne equally between Landlord and
Tenant.

                              XXXIV. EMINENT DOMAIN

      If all or any part of the Premises shall be taken or appropriated by any
public or quasi-public authority under any power of eminent domain, either party
to this Agreement shall have the right, at its option, to terminate this Lease
upon notice given within ninety (90) days after the date of such taking or
appropriation. In such event, Landlord shall be entitled to, and Tenant upon
demand of Landlord shall assign to Landlord, any rights of Tenant to any and all
income, rent, award, or any interest which may be paid or made in connection
with such public or quasi-public use or purpose, and Tenant shall have no claim
against Landlord for the value of any unexpired term of this Lease.

               XXXV. SUBORDINATION TO MORTGAGES AND DEEDS OF TRUST

      This Lease shall be subject and subordinate at all times to the lien of
any mortgages now or hereafter placed on the land and buildings of which the
Leased Premises form a part and also to all renewals, modifications,
consolidations and replacements thereof. Although no instrument or act on the
part of the Tenant shall be necessary to effectuate such subordination, the
Tenant, nevertheless, covenants and agrees to execute and deliver upon demand
such further instrument or instruments subordinating this Lease to the lien of
any such mortgage or mortgages as shall be desired by any mortgagee or proposed
mortgagee. Tenant further acknowledges that the Landlord may be required by any
mortgagee or proposed mortgagee to assign this Lease as additional security for
any mortgage or proposed mortgages, and Tenant agrees that it will upon demand
join with Landlord in the execution of any such assignment or agreement, which
may be in form for recording, as any such mortgagee or proposed mortgagee may
reasonably require. Tenant's failure to comply on demand with the provisions
hereof shall constitute a default under this Lease. Tenant hereby appoints
Landlord attorney-in-fact, irrevocably, to execute any such instruments for
Tenant.

                                       16
<PAGE>

                                  XXXVI. WAIVER

      The waiver by Landlord of any breach of any term, covenant, or condition
contained in this Lease shall not be deemed to be a waiver of such term,
covenant, or condition, or of any subsequent breach of such term, covenant, or
condition, or of any other term, covenant, or condition in this Lease. The
acceptance of rent under this Lease by Landlord shall not be deemed to be a
waiver of any preceding breach by Tenant of any term, covenant, or condition of
this Lease other than Tenant's breach in failing to pay the particular rent so
accepted regardless of Landlord's knowledge of such additional preceding breach
at the time of the acceptance of such rent.

                              XXXVII. MISCELLANEOUS

      A. Time is of the essence of this Lease and each and all of its
provisions.

      B. All notices to be given to Tenant may be given in writing personally or
by depositing such notices in the United States mail, certified mail, return
receipt requested, postage prepaid, or by recognized overnight carrier, and
addressed: if to Tenant, at Tenant's Address for Notices as set forth in Article
IA6(b) or at such other place or places as Tenant may from time to time
designate in writing; if to Landlord, at the Landlord's Address for Notices as
set forth in Article IA6(a), or at such other place or places as Landlord may
from time to time designate in writing.

      C. This Lease represents the entire agreement of the parties with respect
to the parties' rights and duties under this Lease. Tenant acknowledges that
neither Landlord nor any agent, servant, or representative of Landlord, or any
person purporting to act on Landlord's behalf, has made any representation,
warranty, or statement with respect to the amount of taxes that may or will be
assessed against the Premises or about the cost of any insurance required to be
secured by Tenant under this Lease or any other matter relating to this Lease
that is not expressly covered in this Lease. With respect to such matters,
Tenant is relying upon Tenant's own independent investigation and sources of
information, and Tenant expressly waives any right Tenant might otherwise have
under the law to rescind this Lease or to claim damages by reason of the fact
that such taxes or assessments or costs of insurance may be in excess of any sum
deemed reasonable by Tenant, or in excess of any amount Tenant anticipated
paying under this Lease.

      D. This Lease contains all the agreements of the parties with respect to
the subject matter and cannot be amended or modified except by a written
agreement.

      E. The Definitions contained at the beginning of and in the text of this
Lease shall be used to interpret this Lease.

                                       17
<PAGE>

      F. Landlord shall not become or be deemed a partner or a joint venturer
with Tenant by reason of the provisions of this Lease.

      G. The table of contents and headings of the sections of this Lease are
descriptive and for convenience only, are not a part of this Lease, and shall
have no effect on the construction or interpretation of this Lease.

      H. All provisions, whether stated as covenants or conditions, on the part
of Tenant shall be deemed to be both covenants and conditions.

      I. The terms, conditions, covenants and provisions of this Lease shall be
deemed to be severable. If any clause or provision herein contained shall be
adjudged to be invalid or unenforceable by a court of competent jurisdiction or
by operation of any applicable law, it shall not affect the validity of any
other clause or provision herein, but such other clauses or provisions shall
remain in full force and effect. In addition, the Landlord may pursue the relief
or remedy sought in any invalid clause, by conforming the said clause with the
provisions of the statutes or the regulations of any governmental agency in such
case made and provided as if the particular provisions of the applicable
statutes or regulations were set forth herein at length.

      J. In all references herein to any parties, persons, entities or
corporations the use of any particular gender or the plural or singular number
is intended to include the appropriate gender or number as the test of the
within instrument may require. All the terms, covenants and conditions herein
contained shall be for and shall inure to the benefit of and shall bind the
respective parties hereto, and their heirs, executors, administrators, personal
or legal representatives, successors and assigns.

      K. Tenant shall not erect, make or maintain on or attach or affix to any
part of the Premises or the Building in which the same is located, including the
windows and doors of said Building, but excluding interior walls within and not
visible outside of the Premises, any sign, fixture, other representation,
advertisement, notice of any kind or any other matter which is visible from any
location outside of such Building or the Premises, or visible from the lobby of
such Building, without the express written consent of Landlord obtained in
advance which shall not be unreasonably withheld, it being understood that in
all cases Tenant's signage must conform with existing signage in both the North
and South buildings. In the event that such restriction is violated, Landlord
shall have the right to remove same on twenty-four (24) hours notice or to
pursue any other remedy available to it at law or in equity, including but not
by way of limitation, the right to declare a default under this Lease.

      L. Tenant agrees to pay for the cost of all telephone equipment and
installation including telephone outlets throughout the Premises.

      M. Tenant covenants and agrees that no diminution of light, air, or view
by any structure which may subsequently be erected, whether or not by Landlord,
shall entitle Tenant to any reduction of rent under this Lease, result in any
liability of Landlord to Tenant, or in any other way affect this Lease.

      N. Tenant shall not use the name of the Building for any purpose other
than as the address of the business conducted by Tenant in the Premises without
the written consent of Landlord.

      O. Common facilities for purposes of this Lease shall mean the
non-assigned parking areas, landscape, lobby, fire stairs, public hallways,
public lavatories, and all other general building facilities that service all
Building tenants; air conditioning room, fan room, janitor's closet, electrical
closet, telephone closet, boiler room, flues stacks, pipe shafts and vertical
ducts with their enclosing walls.

                                       18
<PAGE>

      P. The Landlord will not provide any janitorial service but will provide
waste removal service by placing containers on the Premises for regular solid
waste, cardboard, glass and aluminum. This will not include any waste removal
for waste that requires special methods of disposal as prescribed by Federal,
State or local authorities.

      Q. Tenant agrees not to conduct "Quitting Business", "Lost Our Lease",
"Bankruptcy", or other such types of sales on the Premises without Landlord's
written consent.

      R. Any lettering, "logo" or design or artwork placed upon the entrance
doors to Tenant's Premises shall be subject to the reasonable approval of the
Landlord. If such signage requires permits from local authorities, the cost of
permits and approvals will be for the Tenant's account.

      S. Any reasonable rules and regulations with regard to the use and
occupancy of the Premises and the Building of which they are a part by the
Tenant as attached hereto or as adopted at any time during the term of this
Lease and of which the Tenant is notified, shall in all things be observed and
performed by the Tenant, its servants, agents, and invitees, provided that such
rule shall not be inconsistent with the Tenant's rights or the Landlord's
obligations as herein expressed.

      T. At least ninety (90) days before the last day of the Term, Tenant shall
give to Landlord a written notice of intention to surrender the Premises on that
date, but nothing contained in this Lease shall be construed as an extension of
the Term or as consent of Landlord to any holding over by Tenant.

      U. Submission of this instrument for examination or signature by Tenant
does not constitute a reservation of or option for lease, and it is not
effective as a lease or otherwise until execution and delivery by both Landlord
and Tenant.

      V. The provisions of this Lease shall, subject to the provisions as to
assignment, apply to and bind the heirs, successors, administrators, and
executors, of the parties.

      W. This Lease shall be construed and interpreted in accordance with the
laws of the State of New Jersey.

      X. Landlord covenants that if, and so long as, Tenant pays the Rent as
herein provided, and performs the covenants hereof, Landlord shall do nothing to
affect Tenant's right to peaceably and quietly have, hold and enjoy the Premises
for the Term herein provided, subject to the provisions of this Lease.

      Y. The Tenant shall have access to the Premises twenty four (24) hours per
day, seven (7) days per week.

      Z. It is specifically understood and agreed that in the event of a breach
by Landlord of any of the terms, covenants or conditions of this Lease to be
performed by Landlord, the monetary liability of Landlord in relation to any
such breach shall be limited to the equity of Landlord in the Land and Building,
including Landlord's interest in this Lease, Land and Building, moneys held by
any trustee for the benefit of Landlord and any sums at the time due or to
become due under this Lease. Tenant shall look only to Landlord's equity in the
Land and Building for the performance and observance of the terms, covenants and
conditions of this Lease to be performed or observed by Landlord and for the
satisfaction of Tenant's remedies for the collection of any award, judgment or

                                       19
<PAGE>

other judicial process requiring the payment of money by Landlord in the event
of a default in the full and prompt payment and performance of any of Landlord's
obligations hereunder. No property or assets of Landlord, other than Landlord's
equity in the Land and Building, shall be subject to lien, levy, execution or
other enforcement procedure for the satisfaction of Tenant's remedies in any
matter whatsoever arising out of or in any way connected with this Lease or any
of its provisions, any negotiations in connection therewith, the relationship of
Landlord and Tenant hereunder or the use and occupancy of the Land and Building;
and in confirmation of the foregoing, if any such lien, levy, execution or other
enforcement procedure so arising shall be on or in respect of any property or
assets of Landlord, other than Landlord's equity in the Land and Building,
Tenant shall promptly release any property or assets of Landlord, other than
Landlord's equity in the Land and Building, from such lien, levy, execution or
other enforcement procedure by executing and delivering, at Tenant's expense and
without charge to Landlord, any instrument or instruments, in recordable form,
to that effect prepared by Landlord (but any such instrument of release shall
not release any such lien, levy, execution or other endorsement procedure on or
in respect of Landlord's equity in the Land and Building).

      AA. WAIVER OF TRIAL BY JURY

      24.1 THE PARTIES HERETO WAIVE A TRIAL BY JURY (TO THE EXTENT PERMITTED BY
LAW) ON ANY AND ALL ISSUES ARISING IN ANY ACTION OR PROCEEDING BETWEEN THEM OR
THEIR SUCCESSORS UNDER OR IN ANY WAY CONNECTED WITH THIS LEASE OR ANY OF ITS
PROVISIONS, ANY NEGOTIATIONS IN CONNECTION THEREWITH, THE RELATIONSHIP OF
LANDLORD AND TENANT, OR TENANT'S USE OR OCCUPATION OF THE PREMISES, INCLUDING
ANY CLAIM OF INJURY OR ANY EMERGENCY OR OTHER STATUTORY REMEDY WITH RESPECT
THERETO. THE PROVISIONS OF THIS SECTION SHALL SURVIVE THE EXPIRATION OR
TERMINATION OF THIS LEASE.

      BB. BROKERAGE

      Landlord and Tenant each warrant and represent to the other that, except
for the Broker(s) identified in Article I.A(17), no broker or like agent
represented the warranting and representing party in connection with the
negotiation and execution of this Lease, and such party is not aware of any
broker or like agent that could or may be entitled to make a claim for a
commission in connection with the negotiation and execution of this Lease. Each
party (the "breaching party") hereto agrees to indemnify, defend and hold the
other party (the "non-breaching party") harmless with respect to any judgments,
damages, legal fees, court costs and any and all liabilities of any nature
whatsoever incurred by the non-breaching party arising from a breach of the
applicable warranty and representation by the breaching party. The provisions of
the foregoing representation and indemnity shall survive the expiration or
termination of this Lease. Landlord agrees to pay the commission of the
Broker(s) in accordance with a separate agreement.

      CC. SUITE 601

      Tenant presently occupies Suite 601 in Ibis Plaza North, pursuant to a
Lease (the "601 Lease"), the term of which expires June 30, 2005. Landlord and
Tenant agree that the Term of the 601 Lease shall expire on the earlier of
December 31, 2005 and the date Tenant occupies the Premises for the conduct of
its business, and, if Tenant continues to occupy Suite 601 after that date,
Tenant shall be considered a holdover tenant pursuant to the provisions of the
601 Lease.

                                       20
<PAGE>

      DD. CERTIFICATE OF OCCUPANCY

      If Tenant is unable to obtain a certificate of occupancy for the Premises
by reason of the actions of Landlord or by reason of a condition in the Building
or on the Land, outside of the Premises, and such action or condition is not
cured by Landlord within thirty (30) days after its receipt of notice of same
from Tenant, Tenant may terminate this Lease by notice to Landlord given prior
to Landlord's cure of the situation. In no event shall a condition of the
Premises give Tenant a right of termination hereunder. If Tenant terminates the
Lease hereunder, it shall have a period of thirty (30) days thereafter to
exercise any renewal option which it may have under the 601 Lease, TIME BEING OF
THE ESSENCE, notwithstanding any time limit for such exercise contained in the
601 Lease.

      The parties have executed this Agreement this 23 day of May, 2005

                                              IBIS PLAZA, LLC

/s/ ILLEGIBLE                                 /s/ ILLEGIBLE
--------------------------------              ----------------------------------
WITNESS                                       By:

                                              LASER ENERGETICS, INC.

/s/ Dewey D. Battis                           /s/ Robert D. Battis
--------------------------------              ----------------------------------
ATTEST, SECRETARY                             By:

A Corporate Resolution or other proper documentation authorizing the Tenant's
leasing of the Premises and execution of this Agreement with its Addendums, if
applicable, is attached hereto and made a part hereof as Exhibit "C".

                                       21
<PAGE>

                                   EXHIBIT "A"

                             Description of Premises

                      (Attach plan/description of Premises)

                                       22
<PAGE>

                                   EXHIBIT "B"

                           Tenant's Preliminary Plans

                                       23
<PAGE>

                                   EXHIBIT "C"

                             TENANT'S AUTHORIZATION

                                       24THE SECURITIES TO BE ISSUED BY HAPPY FOOD CORPORATION UNDER THIS EXCHANGE
AGREEMENT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED
(THE "1933 ACT"), IN RELIANCE UPON SECTION 4(2) AND OTHER EXEMPTIONS UNDER THE
1933 ACT. INVESTORS SHOULD BE AWARE THAT THEY MAY BE REQUIRED TO BEAR THE
FINANCIAL RISKS OF THIS INVESTMENT FOR AN INDEFINITE PERIOD OF TIME. THE
SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND EXCHANGE
COMMISSION, ANY STATE SECURITIES COMMISSION OR ANY OTHER REGULATORY AUTHORITY,
NOR HAVE ANY OF THE FOREGOING AUTHORITIES PASSED UPON OR ENDORSED THE MERITS OF
THIS STOCK EXCHANGE OR THE ACCURACY OR INADEQUACY OF THIS STOCK EXCHANGE
AGREEMENT. ANY REPRESENTATION TO THE CONTRARY IS UNLAWFUL.

                      AGREEMENT AND PLAN OF SHARE EXCHANGE

      THIS AGREEMENT AND PLAN OF SHARE EXCHANGE (hereinafter referred to as this
"Agreement"), is entered into as of this 1st day of June, 2005, by and among
Happy Food Corporation, an Oklahoma corporation ("Happy Food"), Laser
Energetics, Inc., a Florida corporation ("LEI"), and each shareholder of LEI who
executes a counterpart signature page hereto (individually, a "Shareholder" and
collectively, the "Shareholders").

                               W I T N E S S E T H

      A. Happy Food is presently a non-operating publicly traded company
(trading symbol "HPYF") which has been in existence since 1991. Happy Food does
not have any class of securities registered under the Securities Exchange Act of
1934, as amended.

      B. The parties desire that (i) the Shareholders transfer to Happy Food all
of the shares of Class A Common Stock of LEI, par value $0.01 per share (the
"LEI Stock"), held by them in exchange for shares (the "Exchange Shares") of
common stock of Happy Food, par value $0.001 per share (the "Happy Food Stock"),
and (ii) the Shareholders transfer to Happy Food all of the shares of Class B
Common Stock of LEI, par value $0.01 per share (the "LEI Class B"), held by them
in exchange for shares of a Class B Common Stock of Happy Food to be authorized
prior to Closing and having the powers, designations, preferences, and relative,
participating, optional, or other special rights and the qualifications,
limitations, or restrictions of such preferences and/or rights, substantially as
set forth on Exhibit A hereto (the "HPYF Class B"), all pursuant to the terms
and conditions set forth in this Agreement.

      C. Immediately prior to the share exchange provided for by this Agreement,
LEI will purchase from Frank H. Ward 1,350,000 shares (the "Purchase Shares") of
Happy Food Stock held by him, pursuant to the terms and conditions set forth in
the Stock Purchase Agreement of even date herewith (the "Stock Purchase
Agreement"), between LEI and Frank H. Ward.

      D. LEI will become a majority-owned subsidiary of Happy Food after the
Closing of the exchange, with Happy Food holding at least eighty percent (80%)
of the outstanding LEI Stock and one hundred percent (100%) of the LEI Class B.

      E. Immediately following the Closing, the Exchange Shares will represent
in excess of eighty-eight percent (88%) of the total outstanding shares of Happy
Food Stock, and the Purchase Shares will represent between four and five percent
(4% to 5%) of the total outstanding shares of Happy Food Stock. The precise
percentages will depend on which current holders of LEI Stock execute

                                       1
<PAGE>

counterpart signature pages hereto. The HPYF Class B will not be convertible
into Happy Food Stock until the second anniversary of the date of this
Agreement, at which point the percentage of the Happy Food Stock into which it
will be convertible will depend on many factors, including the prices at which
Happy Food will have sold Happy Food Stock between the Closing and such time.

      F. The parties intend that the transaction contemplated herein qualify as
a reorganization under Section 368 of the Internal Revenue Code of 1986, as
amended (the "Code"), and/or as a tax-free exchange under Section 351 of the
Code.

                                    AGREEMENT

      NOW THEREFORE, on the stated premises and for and in consideration of the
mutual covenants and agreements hereinafter set forth and the mutual benefits to
the parties to be derived herefrom, it is hereby agreed as follows:

                                    ARTICLE I
                                PLAN OF EXCHANGE

      1.1 The Exchange. (a) Happy Food Stock for LEI Stock. At the Closing (as
defined below), (i) each Shareholder severally and not jointly hereby agrees to
assign, transfer and deliver to Happy Food, free and clear of all claims,
charges, equities, liens, security interests, and encumbrances whatsoever
(collectively, "Encumbrances") all shares of LEI Stock owned by such
Shareholder; and (ii) Happy Food agrees to acquire from each Shareholder all the
shares being assigned, transferred and delivered by each Shareholder, by issuing
and delivering to such Shareholder in exchange therefore 0.2939583341 shares of
Happy Food Stock for every share of LEI Stock exchanged, and any fractional
shares shall be rounded up or down to the nearest whole share (with 0.5 of one
share rounded up).

            (b) HPYF Class B for LEI Class B. At the Closing (as defined below),
(i) each Shareholder severally and not jointly hereby agrees to assign, transfer
and deliver to Happy Food, free and clear of all Encumbrances all shares of LEI
Class B owned by such Shareholder, if any; and (ii) Happy Food agrees to acquire
from each Shareholder all the shares being assigned, transferred and delivered
by each Shareholder, by issuing and delivering to such Shareholder in exchange
therefore one (1) share of HPYF Class B for every share of LEI Class B
exchanged.

      1.2 Legend. The Happy Food Stock and the HPYF Class B will be issued to
the Shareholders and their designees with the following restrictive legend or
similar legend affixed thereto:

                                       2
<PAGE>

"THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED, OR UNDER ANY STATE SECURITIES OR "BLUE SKY" LAWS. THE
SECURITIES HAVE BEEN ACQUIRED FOR INVESTMENT AND MAY NOT BE SOLD OR TRANSFERRED
FOR VALUE IN THE ABSENCE OF AN EFFECTIVE REGISTRATION OF THEM UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, AND ANY APPLICABLE STATE SECURITIES LAWS OR
AN OPINION OF COUNSEL ACCEPTABLE TO HAPPY FOOD CORPORATION THAT AN EXEMPTION
FROM SUCH REGISTRATION REQUIREMENTS IS AVAILABLE WITH RESPECT TO SUCH SALE OR
TRANSFER."

      1.3 No Dilution. Except for the amendment of Happy Food's Certificate of
Incorporation to authorize 20,000,000 shares of HPYF Class B, Happy Food shall
neither effect, nor fix any record date with respect to, any stock split, stock
dividend, reverse stock split, recapitalization, or similar change in the Happy
Food Stock between the date of this Agreement and the Closing Date.

      1.4 Closing. The closing ("Closing") of the transactions contemplated by
this Agreement shall take place at the offices of Kramer Levin Naftalis &
Frankel LLP, 1177 Avenue of the Americas, New York, New York 10036 on June 1,
2005, or on a date and at such time as the parties may agree ("Closing Date");
provided that each of the closing conditions set forth in Articles VI and VII
have been satisfied or waived.

      1.5 Closing Events. At the Closing:

      (a)   Happy Food shall display share certificates representing the
            Exchange Shares and the HPYF Class B shares to be issued to each
            Shareholder pursuant to this Agreement. Happy Food shall hold such
            certificates in escrow pending each Shareholder's surrender of its
            respective stock certificates formerly representing shares of LEI
            Stock and LEI Class B.

      (b)   Immediately upon and following the Closing, and whether or not stock
            certificates representing such shares are exchanged, the
            Shareholders shall for all purposes be the holders of the Exchange
            Shares and the HPYF Class B shares to which they are entitled
            pursuant to Section 1.1, and Happy Food shall be the holder of the
            LEI Stock and LEI Class B held by the Shareholders immediately prior
            to the Closing.

      (c)   Each of the respective parties hereto shall execute, acknowledge,
            and deliver (or shall cause to be executed, acknowledged, and
            delivered) any and all officers' certificates, opinions, financial
            statements, schedules, agreements, resolutions, rulings, or other
            instruments required by this Agreement to be so delivered at or
            prior to the Closing, and the documents and stock certificates
            provided in paragraphs 5.2 and 5.3 herein, together with such other
            items as may be reasonably requested by the parties hereto and their
            respective legal counsel in order to effectuate or evidence the

                                       3
<PAGE>

            transactions contemplated hereby. If agreed to by the parties, the
            Closing may take place through the exchange of documents by efax,
            fax, email and/or express courier.

      1.6 Standstill. In order to reach Closing quickly, the parties will be
committing substantial resources to performing the various covenants to be
performed prior to Closing. In consideration of this process, for a period of 14
days after the date of this Agreement (the "Exclusivity Period"), or until the
transaction contemplated herein has been abandoned by LEI or Happy Food,
whichever comes first, it is agreed that none of the parties hereto shall seek,
receive, negotiate or accept any offers to enter into a merger, share exchange
or other business combination with any third party. Notwithstanding the
foregoing, nothing herein shall restrict LEI from pursuing any additional
transactions, provided that they will not become effective until after the
Closing.

                                   ARTICLE II
                         REPRESENTATIONS, COVENANTS, AND
                                WARRANTIES OF LEI

      As an inducement to, and to obtain the reliance of Happy Food, LEI
represents and warrants as follows:

      2.1 Organization. LEI is a company duly organized, validly existing, and
in good standing under the laws of the State of Florida. LEI has the power and
is duly authorized, qualified, franchised, and licensed under all applicable
laws, regulations, ordinances, and orders of public authorities to own all of
its properties and assets and to carry on its business in all material respects
as it is now being conducted, including qualification to do business as a
foreign corporation in jurisdictions in which the character and location of the
assets owned by it or the nature of the business transacted by it requires
qualification. The execution and delivery of this Agreement does not, and the
consummation of the transactions contemplated by this Agreement in accordance
with the terms hereof will not, violate any provision of LEI's organizational
documents. LEI has taken all action required by laws, its Articles of
Incorporation, certificate of business registration, or otherwise to authorize
the execution and delivery of this Agreement. LEI has full power, authority, and
legal right and has taken or will take all action required by law, its Articles
of Incorporation, and otherwise to consummate the transactions herein
contemplated. This Agreement has been duly executed and delivered by LEI and
constitutes a legal, valid, and binding obligation of LEI, enforceable against
it in accordance with its terms, except as such enforceability may be limited by
applicable bankruptcy, insolvency, moratorium, or similar laws affecting the
rights of creditors generally and by general principles of equity.

      2.2 Capitalization. LEI's authorized capitalization consists of: (i)
9,950,000,000 shares of LEI Stock; (ii) 45,000,000 shares of Class B Common
Stock, par value $.01 per share; and (iii) 5,000,000 shares of preferred stock,
par value $.01 per share. Other than 101,204,819 shares of LEI Stock and

                                       4
<PAGE>

3,000,000 shares of LEI Class B (or, following the consumation of the
transactions contemplated by the Stock Purchase Agreement, 3,025,000 shares of
LEI Class B), no other shares of LEI's capital stock are issued and outstanding.
All issued and outstanding shares of LEI are legally issued, fully paid, and
non-assessable and were not issued in violation of the pre-emptive or other
rights of any person. Except as set forth in the LEI Schedules, LEI has no
outstanding options, warrants, or other convertible securities.

      2.3 Subsidiaries and Predecessor Corporations. LEI does not own any
subsidiaries.

      2.4 Financial Statements.

      (a)   On or before the Closing Date, LEI will provide to Happy Food its
            audited balance sheet at December 31, 2004, and the related
            statements of operations, stockholders' equity and cash flows for
            the period then ended, together with notes to such statements. All
            of these financial statements will be attached as Section 2.4(a) of
            the LEI Schedules.

      (b)   Except as otherwise set forth in the LEI Schedules: the financial
            statements will have been prepared in accordance with generally
            accepted accounting principles in the United States; the LEI balance
            sheet will present fairly as of its date the financial condition of
            LEI; LEI will not have, as of the date of such balance sheet, except
            as and to the extent reflected or reserved against therein, any
            liabilities or obligations (absolute or contingent) which should be
            reflected in the balance sheet or the notes thereto, prepared in
            accordance with generally accepted accounting principles in the
            United States, and all assets reflected therein will be properly
            reported and present fairly the value of the assets of LEI, in
            accordance with such generally accepted accounting principles; the
            statement of income, condensed consolidated stockholders' equity,
            and consolidated cash flows will reflect fairly the information
            required to be set forth therein by generally accepted accounting
            principles in the United States.

      (c)   LEI has filed all federal, state and local income tax returns
            required to be filed by it from inception to the date hereof and all
            taxes have been paid or will be paid when due. All such returns are
            complete and accurate in all material respects.

      (d)   LEI has no liabilities with respect to the payment of federal,
            state, local, or other taxes (including any deficiencies, interest,
            or penalties), except for taxes accrued but not yet due and payable,
            for which LEI may be liable in its own right or as a transferee of
            the assets of, or as a successor to, any other corporation or
            entity.

      (e)   No deficiency for any taxes has been proposed, asserted or assessed
            against LEI. There has been no tax audit, nor has there been any
            notice to LEI by any taxing authority regarding any such tax audit,
            or, to the knowledge of LEI, is any such tax audit threatened with
            regard to any taxes or LEI tax returns. LEI does not expect the
            assessment of any additional taxes of LEI for any period prior to
            the date hereof and has no knowledge of any unresolved questions
            concerning the liability for taxes of LEI.

                                       5
<PAGE>

      (f)   The books and records, financial and otherwise, of LEI are in all
            material respects complete and correct and have been maintained in
            accordance with good business and accounting practices.

      (g)   LEI has good and marketable title to its assets and, except as set
            forth in the LEI Schedules or the financial statements of LEI or the
            notes thereto, has no material contingent liabilities, direct or
            indirect, matured or unmatured.

      2.5 Information. The information concerning LEI set forth in this
Agreement and in the LEI Schedules is accurate in all material respects and does
not contain any untrue statement of a material fact or omit to state a material
fact required to make the statements made, in light of the circumstances under
which they were made, not misleading.

      2.6 Options or Warrants. Except as set forth in the LEI Schedules, there
are no existing options, warrants, calls, or commitments of any character
relating to the authorized and unissued LEI Stock.

      2.7 Absence of Certain Changes or Events. Except as set forth in this
Agreement or the LEI Schedules, since the date of the most recent LEI balance
sheet, when received:

      (a)   except in the normal course of business, there will not be (i) any
            material adverse change in the business, operations, properties,
            assets, or condition of LEI; or (ii) any damage, destruction, or
            loss to LEI (whether or not covered by insurance) materially and
            adversely affecting the business, operations, properties, assets, or
            condition of LEI;

      (b)   LEI will not have (i) borrowed or agreed to borrow any funds or
            incurred, or become subject to, any material obligation or liability
            (absolute or contingent) not otherwise in the ordinary course of
            business, and except for capital raised by issuance of debt or
            equity in a private placement or other capital raising transaction
            deemed advisable by LEI; (ii) paid any material obligation or
            liability not otherwise in the ordinary course of business (absolute
            or contingent) other than current liabilities reflected in or shown
            on the most recent LEI balance sheet, and current liabilities
            incurred since that date in the ordinary course of business; (iii)
            sold or transferred, or agreed to sell or transfer, any of its
            assets, properties, or rights not otherwise in the ordinary course
            of business (except assets, properties, or rights not used or useful

                                       6
<PAGE>

            in its business which, in the aggregate have a value of less than
            $50,000), or canceled, or agreed to cancel, any debts or claims
            (except debts or claims which in the aggregate are of a value of
            less than $50,000); (iv) made or permitted any amendment or
            termination of any contract, agreement, or license to which they are
            a party not otherwise in the ordinary course of business if such
            amendment or termination is material, considering the business of
            LEI; or (v) issued, delivered, or agreed to issue or deliver any
            stock, bonds or other corporate securities including debentures
            (whether authorized and unissued or held as treasury stock).

      2.8 Title and Related Matters. LEI has good and marketable title to all of
its properties, inventory, interests in properties, and assets, real and
personal, which will be reflected in the most recent LEI balance sheet or
acquired after that date (except properties, interests in properties, and assets
sold or otherwise disposed of since such date in the ordinary course of
business), free and clear of all liens, pledges, charges, or encumbrances
except:

      (a)   described in the LEI Schedules;

      (b)   statutory liens or claims not yet delinquent; and

      (c)   such imperfections of title and easements as do not and will not
            materially detract from or interfere with the present or proposed
            use of the properties subject thereto or affected thereby or
            otherwise materially impair present business operations on such
            properties.

      2.9 Litigation and Proceedings. Except as set forth in the LEI Schedules,
there are no actions, suits, proceedings, or investigations pending or, to the
knowledge of LEI, threatened by or against LEI, or affecting LEI, or its
properties, at law or in equity, before any court or other governmental agency
or instrumentality, domestic or foreign, or before any arbitrator of any kind.
LEI does not have any knowledge of any default on its part with respect to any
judgment, order, writ, injunction, decree, award, rule, or regulation of any
court, arbitrator, or governmental agency or instrumentality.

      2.10 Contracts.

      (a)   LEI has provided, or will provide Happy Food on reasonable request,
            copies of all material contracts, agreements, franchises, license
            agreements, or other commitments to which LEI is a party or by which
            it or any of its assets, products, technology, or properties are
            bound;

      (b)   All contracts, agreements, franchises, license agreements, and other
            commitments to which LEI is a party or by which its properties are
            bound and which are material to the operations of LEI, taken as a
            whole are valid and enforceable by LEI in all respects, except as
            limited by bankruptcy and insolvency laws and by other laws
            affecting the rights of creditors generally; and

                                       7
<PAGE>

      (c)   Except as described in the LEI Schedules, LEI is not party to or
            bound by, and the properties of LEI, is not subject to, any
            contract, agreement, other commitment or instrument; any charter or
            other corporate restriction; or any judgment, order, writ,
            injunction, decree, or award which materially and adversely affects,
            or in the future may (as far as LEI can now foresee) materially and
            adversely affect, the business, operations, properties, assets, or
            condition of LEI.

      2.11 Material Contract Defaults. Except as set forth in the LEI Schedules,
LEI is not in default in any material respect under the terms of any outstanding
contract, agreement, lease, or other commitment which is material to the
business, operations, properties, assets, or condition of LEI and there is no
event of default in any material respect under any such contract, agreement,
lease, or other commitment in respect of which LEI has not taken adequate steps
to prevent such a default from occurring.

      2.12 No Conflict With Other Instruments. The execution of this Agreement
and the consummation of the transactions contemplated by this Agreement will not
result in the breach of any term or provision of, or constitute an event of
default under, any material indenture, mortgage, deed of trust, or other
material contract, agreement, or instrument to which LEI is a party or to which
any of its properties or operations are subject.

      2.13 Compliance With Laws and Regulations. LEI has complied with all
applicable statutes and regulations of any national, county, or other
governmental entity or agency thereof, except to the extent that noncompliance
would not materially and adversely affect the business, operations, properties,
assets, or condition of LEI, or except to the extent that noncompliance would
not result in the incurrence of any material liability for LEI.

      2.14 Approval of Agreement. The board of directors of LEI will have
authorized the execution and delivery of this Agreement by LEI, and has or will
have approved the transactions contemplated hereby.

      2.15 Material Transactions or Affiliations. Set forth in the LEI Schedules
is a description of every material contract, agreement, or arrangement between
LEI and any predecessor and any person who was at the time of such contract,
agreement, or arrangement an officer, director, or person owning of record, or
known by LEI to own beneficially, 10% or more of the issued and outstanding
common stock of LEI and which is to be performed in whole or in part after the
date hereof or which was entered into not more than three years prior to the
date hereof. In all of such transactions, the amount paid or received, whether
in cash, in services, or in kind, is, had been during the full term thereof, and
is required to be during the unexpired portion of the term thereof, no less
favorable to LEI than terms available from otherwise unrelated parties in arm's
length transactions. Except as disclosed in the LEI Schedules or otherwise
disclosed herein, no officer, director, or 10% shareholder of LEI has, or has
had since inception of LEI, any material interest, direct or indirect, in any
material transaction with LEI. There are no commitments by LEI, whether written
or oral, to lend any funds to, borrow any money from, or enter into any other
material transaction with, any such affiliated person.

                                       8
<PAGE>

      2.16 LEI Schedules. LEI will deliver, as soon as practicable, the
following schedules, which are collectively referred to as the "LEI Schedules"
and which consist of separate schedules dated as of the date of execution of
this Agreement and instruments and data as of such date, all certified by the
chief executive officer of LEI as complete, true, and correct:

      (a)   a schedule containing complete and accurate copies of the
            organizational documents, as amended, of LEI in effect as of the
            date of this Agreement;

      (b)   a schedule containing a copy of the financial statements of LEI
            identified in paragraph 2.4(a);

      (c)   a schedule setting forth all material contracts, agreements, or
            other instruments to which LEI is a party or by which it or its
            properties are bound, specifically including all contracts,
            agreements, or arrangements referred to in Section 2.10;

      (d)   a schedule setting forth a description of any material adverse
            change in the business, operations, property, inventory, assets, or
            condition of LEI since the date of the most recent LEI balance
            sheet, required to be provided pursuant to section 2.7 hereof; and

      (e)   a schedule setting forth any other information required to be
            disclosed in the LEI Schedules by sections 2.1 through 2.15. LEI
            shall cause the LEI Schedules and the instruments and data delivered
            to Happy Food hereunder to be updated after the date hereof up to
            and including the Closing Date.

      2.17 Ownership of LEI Stock. The Shareholders are the legal and beneficial
owners of not less than 80% of the outstanding LEI Stock and 100% of the
outstanding LEI Class B, and the Shareholders have full right, power, and
authority to transfer, assign, convey, and deliver their respective LEI Stock
and LEI Class B; and delivery of such LEI Stock and LEI Class B at the Closing
will convey to Happy Food good and marketable title to such shares free and
clear of any Encumbrances except for any Encumbrances arising out of such shares
being held by Happy Food.

                                   ARTICLE III
         REPRESENTATIONS, COVENANTS, AND WARRANTIES OF THE SHAREHOLDERS

      As an inducement to, and to obtain the reliance of Happy Food, each
Shareholder severally and not jointly represents and warrants as follows:

                                       9
<PAGE>

      3.1 Authorization. Such Shareholder has full power, authority, and legal
right and has taken or will take all action required by law and otherwise to
consummate the transactions herein contemplated. This Agreement has been duly
executed and delivered by such Shareholder and constitutes a legal, valid, and
binding obligation of such Shareholder, enforceable against it in accordance
with its terms, except as such enforceability may be limited by applicable
bankruptcy, insolvency, moratorium, or similar laws affecting the rights of
creditors generally and by general principles of equity. Such Shareholder has
complied with all applicable community property laws, and no spousal signature
or other consent is required from any person other than the signatories hereto
in connection with the execution, delivery and performance of this Agreement by
such Shareholder.

      3.2 Capitalization. Such Shareholder is the legal and beneficial owner of
all the shares of LEI Stock and LEI Class B held of record by such Shareholder,
and such Shareholder has full right, power, and authority to transfer, assign,
convey, and deliver the LEI Stock and LEI Class B held by him or her; and
delivery of such LEI Stock and LEI Class B at the Closing will convey to Happy
Food good and marketable title to such shares free and clear of any Encumbrances
except for any Encumbrances arising out of such shares being held by Happy Food.

      3.3 Accredited Investor Status. Such Shareholder is an "accredited
investor" within the meaning of Regulation D promulgated under the Securities
Act of 1933, as amended (the "Securities Act").

      3.4 Accuracy of Investment Representations. The representations and
warranties of such Shareholder set forth on Schedule I and previously made by
such Shareholder to Happy Food are true, correct and complete in all respects.

      3.5 No Plan to Dispose of Exchange Shares or HPYF Class B. Such
Shareholder has not entered into any contract, arrangement or other
understanding pursuant to which such Shareholder will dispose of the Exchange
Shares or HPYF Class B that such Shareholder will receive pursuant to this
Agreement; and such Shareholder has no current plan or intention to do so.

                                   ARTICLE IV
            REPRESENTATIONS, COVENANTS, AND WARRANTIES OF HAPPY FOOD

      As an inducement to, and to obtain the reliance of LEI, Happy Food
represents and warrants as follows:

      4.1 Organization. Happy Food is a corporation duly organized, validly
existing, and in good standing under the laws of the State of Oklahoma, and has
the corporate power and is duly authorized, qualified, franchised, and licensed
under all applicable laws, regulations, ordinances, and orders of public
authorities to own all of its properties and assets and to carry on its business
in all material respects as it is now being conducted, and there is no

                                       10
<PAGE>

jurisdiction in which it is not qualified in which the character and location of
the assets owned by it or the nature of the business transacted by it requires
qualification. Included in the Happy Food Schedules (as hereinafter defined) are
complete and correct copies of the Certificate of Incorporation and bylaws of
Happy Food, and all amendments thereto, as in effect on the date hereof. The
execution and delivery of this Agreement does not, and the consummation of the
transactions contemplated hereby will not, violate any provision of Happy Food's
Certificate of Incorporation or bylaws. Happy Food has taken all action required
by law, its Certificate of Incorporation, its bylaws, or otherwise to authorize
the execution and delivery of this Agreement, and Happy Food has full power,
authority, and legal right and has taken all action required by law, its
Certificate of Incorporation, bylaws, or otherwise to consummate the
transactions herein contemplated. This Agreement has been duly executed and
delivered by Happy Food and constitutes a legal, valid, and binding obligation
of Happy Food, enforceable against it in accordance with its terms, except as
such enforceability may be limited by applicable bankruptcy, insolvency,
moratorium, or similar laws affecting the rights of creditors generally and by
general principles of equity.

      4.2 Capitalization. Happy Food's authorized capitalization consists of
9,500,000 shares of common stock, par value $0.001, of which no more than
3,200,000 shares will be issued and outstanding at Closing; and 500,000 shares
of Preferred Stock of which no shares are issued and outstanding. All presently
issued and outstanding shares are legally issued, fully paid, and non-assessable
and not issued in violation of the pre-emptive or other rights of any person.

      4.3 Subsidiaries. Happy Food does not have any subsidiaries and does not
own, beneficially or of record, any shares of any other corporation.

      4.4 Financial Statements.

      (a)   Included in the Happy Food Schedules are copies of the audited
            balance sheets of Happy Food as of December 31, 2003, and the
            related audited statements of operations, stockholders' equity, and
            cash flow for the two fiscal years ended December 31, 2003 together
            with the notes to such statements; the unaudited balance sheet of
            Happy Food as of December 31, 2004, and the related unaudited
            statements of operations, stockholders' equity, and cash flow for
            the year ended December 31, 2004, together with the notes to such
            statements.

      (b)   All such financial statements have been prepared in accordance with
            generally accepted accounting principles in the United States
            consistently applied throughout the periods involved. The Happy Food
            balance sheets presents fairly as of December 31, 2003 and 2004, the
            financial condition of Happy Food. Happy Food did not have as of the
            date of any such Happy Food balance sheet, except as and to the
            extent reflected or reserved against therein, any liabilities or
            obligations (absolute or contingent) which should be reflected in a
            balance sheet or the notes thereto prepared in accordance with
            generally accepted accounting principles, and all assets reflected
            therein are properly reported and present fairly the value of the

                                       11
<PAGE>

            assets of Happy Food, in accordance with generally accepted
            accounting principles. The statements of operations, stockholders'
            equity, and cash flow reflect fairly the information required to be
            set forth therein by generally accepted accounting principles.

      (c)   Happy Food has filed all federal, state and local income tax returns
            required to be filed by it from inception to the date hereof and all
            taxes have been paid or will be paid when due. All such returns are
            complete and accurate in all material respects. Included in the
            Happy Food Schedules is a list of the federal income tax returns of
            Happy Food filed since 1991.

      (d)   Happy Food has no liabilities with respect to the payment of
            federal, state, local, or other taxes (including any deficiencies,
            interest, or penalties), except for taxes accrued but not yet due
            and payable, for which Happy Food may be liable in its own right or
            as a transferee of the assets of, or as a successor to, any other
            corporation or entity.

      (e)   No deficiency for any taxes has been proposed, asserted or assessed
            against Happy Food. There has been no tax audit, nor has there been
            any notice to Happy Food by any taxing authority regarding any such
            tax audit, or, to the knowledge of Happy Food, is any such tax audit
            threatened with regard to any taxes or Happy Food tax returns. Happy
            Food does not expect the assessment of any additional taxes of Happy
            Food for any period prior to the date hereof and has no knowledge of
            any unresolved questions concerning the liability for taxes of Happy
            Food.

      (f)   The books and records, financial and otherwise, of Happy Food are in
            all material respects complete and correct and have been maintained
            in accordance with good business and accounting practices.

      (g)   Happy Food has good and marketable title to its assets and, except
            as set forth in the Happy Food Schedules or the Financial Statements
            of Happy Food or the notes thereto, has no material contingent
            liabilities, direct or indirect, matured or unmatured.

      4.5 Information. The information concerning Happy Food set forth in this
Agreement and the Happy Food Schedules are and will be accurate in all material
respects and does not contain any untrue statement of a material fact or omit to
state a material fact required to make the statements made, in light of the
circumstances under which they were made, not misleading as of the date hereof
and as of the Closing date.

      4.6 Options or Warrants. There are no existing options, warrants, calls,
or commitments of any character relating to authorized and unissued stock of
Happy Food.

                                       12
<PAGE>

      4.7 Absence of Certain Changes or Events. Except as described herein or in
the Happy Food Schedules, since the date of the most recent Happy Food balance
sheet:

      (a)   there has not been (i) any material adverse change in the business,
            operations, properties, assets, or condition of Happy Food (whether
            or not covered by insurance) materially and adversely affecting the
            business, operations, properties, assets, or condition of Happy
            Food;

      (b)   Happy Food has not (i) amended its Certificate of Incorporation or
            bylaws; (ii) declared or made, or agreed to declare or make any
            payment of dividends or distributions of any assets of any kind
            whatsoever to stockholders or purchased or redeemed, or agreed to
            purchase or redeem, any of its capital stock; (iii) waived any
            rights of value which in the aggregate are extraordinary or material
            considering the business of Happy Food; (iv) made any material
            change in its method of management, operation, or accounting; (v)
            entered into any other material transactions; (vi) made any accrual
            or arrangement for or payment of bonuses or special compensation of
            any kind or any severance or termination pay to any present or
            former officer or employee; (vii) increased the rate of compensation
            payable or to become payable by it to any of its officers or
            directors or any of its employees; or (viii) made any increase in
            any profit sharing, bonus, deferred compensation, insurance,
            pension, retirement, or other employee benefit plan, payment, or
            arrangement, made to, for, or with its officers, directors, or
            employees;

      (c)   Happy Food has not (i) granted or agreed to grant any options,
            warrants, or other rights for its stocks, bonds, or other corporate
            securities calling for the issuance thereof; (ii) borrowed or agreed
            to borrow any funds or incurred, or become subject to, any material
            obligation or liability (absolute or contingent) except liabilities
            incurred in the ordinary course of business; (iii) paid or agreed to
            pay any material obligation or liability (absolute or contingent)
            other than current liabilities reflected in or shown on the most
            recent Happy Food balance sheet and current liabilities incurred
            since that date in the ordinary course of business and professional
            and other fees and expenses incurred in connection with the
            preparation of this Agreement and the consummation of the
            transactions contemplated hereby; (iv) sold or transferred, or
            agreed to sell or transfer, any of its assets, property, or rights
            (except assets, property, or rights not used or useful in its
            business which, in the aggregate have a value of less than $1,000),
            or canceled, or agreed to cancel, any debts or claims (except debts
            or claims which in the aggregate are of a value of less than
            $1,000); (v) made or permitted any amendment or termination of any
            contract, agreement, or license to which it is a party if such
            amendment or termination is material, considering the business of
            Happy Food; or (vi) issued, delivered, or agreed to issue or deliver
            any stock, bonds, or other corporate securities including debentures
            (whether authorized and unissued or held as treasury stock), except
            in connection with this Agreement;

                                       13
<PAGE>

      (d)   It is understood and agreed that Happy Food will have no material
            liabilities or accounts payable as of the Closing date; and

      (e)   to the best knowledge of Happy Food, it has not become subject to
            any law or regulation which materially and adversely affects, or in
            the future may adversely affect, the business, operations,
            properties, assets, or condition of Happy Food.

      4.8 Title and Related Matters. Happy Food has good and marketable title to
all of its properties, interest in properties, and assets, real and personal,
which are reflected in the Happy Food balance sheet or acquired after that date
(except properties, interest in properties, and assets sold or otherwise
disposed of since such date in the ordinary course of business), free and clear
of all liens, pledges, charges, or encumbrances except:

      (a)   statutory liens or claims not yet delinquent;

      (b)   such imperfections of title and easements as do not and will not
            materially detract from or interfere with the present or proposed
            use of the properties subject thereto or affected thereby or
            otherwise materially impair present business operations on such
            properties; and

      (c)   as described in the Happy Food Schedules.

      4.9 Litigation and Proceedings. There are no actions, suits, or
proceedings pending or, to the knowledge of Happy Food, threatened by or against
or affecting Happy Food, at law or in equity, before any court or other
governmental agency or instrumentality, domestic or foreign, or before any
arbitrator of any kind. Happy Food does not have any knowledge of any default on
its part with respect to any judgment, order, writs, injunction, decree, award,
rule, or regulation of any court, arbitrator, or governmental agency or
instrumentality.

      4.10 Contracts. Happy Food is not a party to any material contract,
agreement, or other commitment, except as specifically disclosed in its
schedules to this Agreement.

      4.11 No Conflict With Other Instruments. The consummation of the
transactions contemplated by this Agreement and the Stock Purchase Agreement
will not result in the breach of any term or provision of, or constitute a
default under, any indenture, mortgage, deed of trust, or other material
agreement or instrument to which Happy Food is a party or to which it or any of
its assets or operations are subject.

      4.12 Governmental Authorizations. Happy Food has all licenses, franchises,
permits, and other government authorizations, that are legally required to
enable it to conduct its business operations in all material respects as

                                       14
<PAGE>

conducted on the date hereof. Except for compliance with federal and state
securities or corporation laws, as hereinafter provided, no authorization,
approval, consent, or order of, or registration, declaration, or filing with,
any court or other governmental body is required in connection with the
execution and delivery by Happy Food of this Agreement and the consummation by
Happy Food of the transactions contemplated hereby.

      4.13 Compliance With Laws and Regulations. To the best of its knowledge,
Happy Food has complied with all applicable statutes and regulations of any
federal, state, or other applicable governmental entity or agency thereof,
except to the extent that noncompliance would not materially and adversely
affect the business, operations, properties, assets, or conditions of Happy Food
or except to the extent that noncompliance would not result in the incurrence of
any material liability. This compliance includes, but is not limited to, the
filing of all reports to date with the U.S. Securities and Exchange Commission
and state securities authorities.

      4.14 Insurance. Happy Food owns no insurable properties and carries no
casualty or liability insurance.

      4.15 Approval of Agreement. The board of directors of Happy Food has
authorized the execution and delivery of this Agreement by Happy Food and has
approved this Agreement and the transactions contemplated hereby.

      4.16 Continuity of Business Enterprises. Happy Food has no commitment or
present intention to liquidate Happy Food or sell or otherwise dispose of a
material portion of its business or assets following the consummation of the
transactions contemplated hereby.

      4.17 Material Transactions of Affiliations. Except as disclosed herein and
in the Happy Food Schedules, there exists no material contract, agreement, or
arrangement between Happy Food and any person who was at the time of such
contract, agreement, or arrangement an officer, director, or person owning of
record or known by Happy Food to own beneficially, 10% or more of the issued and
outstanding common stock of Happy Food and which is to be performed in whole or
in part after the date hereof or was entered into not more than three years
prior to the date hereof. Neither any officer, director, nor 10% shareholder of
Happy Food has, or has had during the last preceding full fiscal year, any known
interest in any material transaction with Happy Food which was material to the
business of Happy Food, except compensation paid to Frank H. Ward by the
issuance of Common Stock of Happy Food. Happy Food has no commitment, whether
written or oral, to lend any funds to, borrow any money from, or enter into any
other material transaction with any such affiliated person.

      4.18 Employment Matters. Happy Food has no employees other than its
executive officers.

      4.19 Happy Food Schedules. Happy Food has delivered to LEI, or will
deliver as soon as practicable at LEI's request, the following schedules, which
are collectively referred to as the "Happy Food Schedules," which are dated the

                                       15
<PAGE>

date of this Agreement, all certified by an officer to be complete, true, and
accurate:

      (a)   a schedule containing complete and accurate copies of the
            Certificate of Incorporation and bylaws, as amended, of Happy Food
            as in effect as of the date of this Agreement;

      (b)   a schedule containing the financial statements of Happy Food
            identified in paragraph 4.4(a);

      (c)   a schedule containing a list of the federal income tax returns of
            Happy Food identified in paragraph 4.4(d);

      (d)   a schedule setting forth the description of any material adverse
            change in the business, operations, property, assets, or condition
            of Happy Food since the date of the most recent Happy Food balance
            sheet, required to be provided pursuant to section 4.7 hereof; and

      (e)   a schedule setting forth any other information required to be
            disclosed in the Happy Food Schedules by sections 4.1 through 4.17.

      4.20. Happy Food shall cause the Happy Food Schedules and the instruments
and data delivered to LEI hereunder to be updated after the date hereof up to
and including the Closing Date.

                                    ARTICLE V
                                SPECIAL COVENANTS

      5.1 Stockholders' Actions of Happy Food. Prior to the Closing, Happy Food
shall cause the following actions to be taken by the written consent of the
holders of a majority of the outstanding shares of Happy Food Stock.

      (a)   fixing the number of directors constituting the entire board of
            directors of Happy Food at two;

      (b)   the removal of each current director of Happy Food and the election
            of Robert D. Battis and John T. LiVecchi as the sole directors of
            Happy Food effective at the time of the Closing;

      (c)   the approval of this Agreement, the Stock Purchase Agreement and the
            transactions contemplated hereby and thereby; and

      (d)   such other actions as the directors may determine are necessary or
            appropriate.

                                       16
<PAGE>

      5.2 Happy Food Charter Amendment. Prior to the Closing, Happy Food shall
amend its Certificate of Incorporation to increase the authorized number of
shares of Happy Food's common stock from 9,500,000 to 200,000,000, to authorize
20,000,000 shares of HPYF Class B and to make such other modifications thereto
as LEI may reasonably request;

      5.3 [Reserved.]

      5.4 Access to Properties and Records. Happy Food and LEI will each afford
to the officers and authorized representatives of the other full access to the
properties, books, and records of Happy Food or LEI in order that each may have
full opportunity to make such reasonable investigation as it shall desire to
make of the affairs of the other, and each will furnish the other with such
additional financial and operating data and other information as to the business
and properties of Happy Food or LEI as the other shall from time to time
reasonably request.

      5.5 Delivery of Books and Records. At the Closing, Happy Food shall
deliver to Mark Meller, the originals of the corporate minute books, books of
account, contracts, records, and all other books or documents of Happy Food now
in the possession or control of Happy Food or its representatives and agents.

      5.6 Private Placement Exemption. LEI shall use its best efforts (i) to
obtain a representation letter prior to Closing from each Shareholder including
the representations set forth in Schedule I hereto (the executed copies of each
such representation letter being collectively referred to herein as the
"Shareholder Representation Letters"), and (ii) to cause Happy Food to file a
Form D notice with the U.S. Securities and Exchange Commission consistent with
Rule 506 under Regulation D promulgated under the Securities Act within the time
frames prescribed by law.

      5.7 Actions Prior to Closing.

      (a)   From and after the date of this Agreement until the Closing Date and
            except as set forth in the Happy Food or LEI Schedules or as
            permitted or contemplated by this Agreement, Happy Food and LEI will
            each: (i) carry on its business in substantially the same manner as
            it has heretofore; (ii) maintain and keep its properties in states
            of good repair and condition as at present, except for depreciation
            due to ordinary wear and tear and damage due to casualty; (iii)
            maintain in full force and effect insurance comparable in amount and
            in scope of coverage to that now maintained by it; (iv) perform in
            all material respects all of its obligation under material
            contracts, leases, and instruments relating to or affecting its
            assets, properties, and business; (v) use its best efforts to
            maintain and preserve its business organization intact, to retain
            its key employees, and to maintain its relationship with its
            material suppliers and customers; and (vi) fully comply with and
            perform in all material respects all obligations and duties imposed
            on it by all federal and state laws and all rules, regulations, and
            orders imposed by federal or state governmental authorities.

                                       17
<PAGE>

      (b)   From and after the date of this Agreement until the Closing Date,
            neither Happy Food nor LEI will: (i) make any change in their
            organizational documents, Certificate of Incorporation (except as
            provided herein), or bylaws; (ii) take any action described in
            section 2.7 in the case of LEI, or in section 4.7, in the case of
            Happy Food (all except as permitted therein or as disclosed in the
            applicable party's schedules); (iii) enter into or amend any
            contract, agreement, or other instrument of any of the types
            described in such party's schedules, except that a party may enter
            into or amend any contract, agreement, or other instrument in the
            ordinary course of business involving the sale of goods or services;
            or (iv) make or change any material tax election, settle or
            compromise any material tax liability or file any amended tax
            return.

      5.8 Indemnification.

      (a)   LEI hereby agrees to indemnify Happy Food and each of the officers,
            agents and directors of Happy Food as of the date of execution of
            this Agreement against any loss, liability, claim, damage, or
            expense (including, but not limited to, any and all expense
            whatsoever reasonably incurred in investigating, preparing, or
            defending against any litigation, commenced or threatened, or any
            claim whatsoever), to which it or they may become subject arising
            out of or based on any inaccuracy appearing in or misrepresentation
            made in Article II of this Agreement. The indemnification provided
            for in this paragraph shall survive the Closing and consummation of
            the transactions contemplated hereby and termination of this
            Agreement.

      (b)   Happy Food hereby agrees to indemnify LEI and each of the officers,
            agents and directors of LEI as of the date of execution of this
            Agreement against any loss, liability, claim, damage, or expense
            (including, but not limited to, any and all expense whatsoever
            reasonably incurred in investigating, preparing, or defending
            against any litigation, commenced or threatened, or any claim
            whatsoever), to which it or they may become subject arising out of
            or based on any inaccuracy appearing in or misrepresentation made
            under Article IV of this Agreement. The indemnification provided for
            in this paragraph shall survive the Closing and consummation of the
            transactions contemplated hereby and termination of this Agreement.

                                       18
<PAGE>

                                   ARTICLE VI
                CONDITIONS PRECEDENT TO OBLIGATIONS OF HAPPY FOOD

      The obligations of Happy Food under this Agreement are subject to the
satisfaction, at or before the Closing, of the following conditions:

      6.1 Accuracy of Representations; Performance.

      (a)   The representations and warranties made by LEI in this Agreement
            were true when made and shall be true at the Closing Date with the
            same force and effect as if such representations and warranties were
            made at and as of the Closing Date (except for changes therein
            permitted by this Agreement), and LEI shall have performed or
            complied with all covenants and conditions required by this
            Agreement to be performed or complied with by LEI prior to or at the
            Closing. Happy Food may request to be furnished with a certificate,
            signed by a duly authorized officer of LEI and dated the Closing
            Date, to the foregoing effect.

      (b)   The representations and warranties made by the Shareholders in this
            Agreement were true when made and shall be true at the Closing Date
            with the same force and effect as if such representations and
            warranties were made at and as of the Closing Date (except for
            changes therein permitted by this Agreement), and each Shareholder
            shall have performed or complied with all covenants and conditions
            required by this Agreement to be performed or complied with by it
            prior to or at the Closing.

      6.2 Officer's Certificates. Happy Food shall have been furnished with a
certificate dated the Closing Date and signed by a duly authorized officer of
LEI to the effect that no litigation, proceeding, investigation, or inquiry is
pending or, to the best knowledge of LEI threatened, which might result in an
action to enjoin or prevent the consummation of the transactions contemplated by
this Agreement, or, to the extent not disclosed in the LEI Schedules, by or
against LEI which might result in any material adverse change in any of the
assets, properties, business, or operations of LEI.

      6.3 No Material Adverse Change. Prior to the Closing Date, there shall not
have occurred any material adverse change in the financial condition, business,
or operations of LEI, nor shall any event have occurred which, with the lapse of
time or the giving of notice, may cause or create any material adverse change in
the financial condition, business, or operations.

      6.4 Minimum Shareholder Participation. Shareholders holding, in the
aggregate, at least eighty percent (80%) of the LEI Stock and all of the LEI
Class B outstanding shall have executed counterpart signature pages hereto.

      6.5 Other Items.

      (a)   Happy Food shall have received a shareholder list of LEI containing
            the name, address, and number of shares held by each LEI shareholder
            as of the date of Closing certified by an executive officer of LEI
            as being true, complete, and accurate.

                                       19
<PAGE>

      (b)   Happy Food shall have received such further documents, certificates,
            or instruments relating to the transactions contemplated hereby as
            Happy Food may reasonably request.

                                   ARTICLE VII
                   CONDITIONS PRECEDENT TO OBLIGATIONS OF LEI

      The obligations of LEI under this Agreement are subject to the
satisfaction, at or before the Closing, of the following conditions:

      7.1 Accuracy of Representations; Performance. The representations and
warranties made by Happy Food in this Agreement were true when made and shall be
true as of the Closing Date (except for changes therein permitted by this
Agreement) with the same force and effect as if such representations and
warranties were made at and as of the Closing Date, and Happy Food shall have
performed and complied with all covenants and conditions required by this
Agreement to be performed or complied with by Happy Food prior to or at the
Closing. LEI shall have been furnished with a certificate, signed by a duly
authorized executive officer of Happy Food and dated the Closing Date, to the
foregoing effect.

      7.2 Officer's Certificate. LEI shall have been furnished with a
certificate dated the Closing Date and signed by a duly authorized executive
officer of Happy Food to the effect that no litigation, proceeding,
investigation, or inquiry is pending or, to the best knowledge of Happy Food
threatened, which might result in an action to enjoin or prevent the
consummation of the transactions contemplated by this Agreement.

      7.3 No Material Adverse Change. Prior to the Closing Date, there shall not
have occurred any material adverse change in the financial condition, business,
or operations of Happy Food nor shall any event have occurred which, with the
lapse of time or the giving of notice, may cause or create any material adverse
change in the financial condition, business, or operations of Happy Food.

      7.4 Good Standing. Happy Food shall have received a certificate of good
standing from the Secretary of State of the State of Oklahoma or other
appropriate office, dated as of a date within ten days prior to the Closing Date
certifying that Happy Food is in good standing as a corporation in the State of
Oklahoma and has filed all tax returns required to have been filed by it to date
and has paid all taxes reported as due thereon.

      7.5 Minimum Shareholder Participation. Shareholders holding, in the
aggregate, at least eighty percent (80%) of the LEI Stock and all of the LEI
Class B outstanding shall have executed counterpart signature pages hereto.

                                       20
<PAGE>

      7.6 Other Items.

      (a)   LEI shall have received a shareholder list of Happy Food containing
            the name, address, and number of shares held by each Happy Food
            shareholder as of the date of Closing certified by an executive
            officer of Happy Food as being true, complete, and accurate.

      (b)   LEI shall have received such further documents, certificates, or
            instruments relating to the transactions contemplated hereby as LEI
            may reasonably request.

                                  ARTICLE VIII
                                   TERMINATION

      8.1 Termination.

      (a)   This Agreement may be terminated by the board of directors of either
            Happy Food or LEI at any time prior to the Closing Date if: (i)
            there shall be any actual or threatened action or proceeding before
            any court or any governmental body which shall seek to restrain,
            prohibit, or invalidate the transactions contemplated by this
            Agreement and which, in the judgment of such board of directors,
            made in good faith and based on the advice of its legal counsel,
            makes it inadvisable to proceed with the exchange contemplated by
            this Agreement; (ii) any of the transactions contemplated hereby are
            disapproved by any regulatory authority whose approval is required
            to consummate such transactions or in the judgment of such board of
            directors, made in good faith and based on the advice of counsel,
            there is substantial likelihood that any such approval will not be
            obtained or will be obtained only on a condition or conditions which
            would be unduly burdensome, making it inadvisable to proceed with
            the exchange; or (iii) there shall have been any change after the
            date of the latest balance sheets of LEI and Happy Food,
            respectively, in the assets, properties, business, or financial
            condition of LEI and Happy Food, which could have a materially
            adverse affect on the value of the business of LEI and Happy Food
            respectively, except any changes disclosed in the LEI and Happy Food
            Schedules, as the case may be, dated as of the date of execution of
            this Agreement. In the event of termination pursuant to this
            paragraph (a) of section 8.1, no obligation, right, or liability
            shall arise hereunder, and each party shall bear all of the expenses
            incurred by it in connection with the negotiation, drafting, and
            execution of this Agreement and the transactions herein
            contemplated.

      (b)   This Agreement may be terminated at any time prior to the Closing by
            action of the board of directors of Happy Food if LEI shall fail to
            comply in any material respect with any of its covenants or
            agreements contained in this Agreement or if any of the
            representations or warranties of LEI contained herein shall be
            inaccurate in any material respect, and, in either case if such

                                       21
<PAGE>

            failure is reasonably subject to cure, it remains uncured for seven
            days after notice of such failure is provided to LEI. If this
            Agreement is terminated pursuant to this paragraph (b) of section
            8.1, this Agreement shall be of no further force or effect, and no
            obligation, right, or liability shall arise hereunder, except that
            LEI shall bear its own costs as well as the costs incurred by Happy
            Food in connection with the negotiation, preparation, and execution
            of this Agreement and qualifying the offer and sale of securities
            contemplated hereby for exemption from the registration requirements
            of state and federal securities laws.

      (c)   This Agreement may be terminated at any time prior to the Closing by
            action of the board of directors of LEI if Happy Food shall fail to
            comply in any material respect with any of its covenants or
            agreements contained in this Agreement or if any of the
            representations or warranties of Happy Food contained herein shall
            be inaccurate in any material respect, and, in either case if such
            failure is reasonably subject to cure, it remains uncured for seven
            days after notice of such failure is provided to Happy Food. If this
            Agreement is terminated pursuant to this paragraph (c) of section
            8.1, this Agreement shall be of no further force or effect, and no
            obligation, right, or liability shall arise hereunder, except that
            Happy Food shall bear its own costs as well as the costs of LEI
            incurred in connection with the negotiation, preparation, and
            execution of this Agreement.

                                   ARTICLE IX
                                  MISCELLANEOUS

      9.1 Brokers. Except as set forth on Schedule 9.1, Happy Food and LEI agree
that there were no finders or brokers involved in bringing the parties together
or who were instrumental in the negotiation, execution, or consummation of this
Agreement. Happy Food and LEI each agree to indemnify the other against any
claim by any third person (other than the persons set forth on Schedule 9.1) for
any commission, brokerage, or finders' fee arising from the transactions
contemplated hereby based on any alleged agreement or understanding between the
indemnifying party and such third person, whether express or implied from the
actions of the indemnifying party.

      9.2 Governing Law. This Agreement shall be governed by, enforced, and
construed under and in accordance with the laws of the United States of America
and, with respect to matters of state law, with the laws of Oklahoma. Any
dispute arising under or in any way related to this Agreement will be submitted
to binding arbitration before a single arbitrator by the American Arbitration
Association in accordance with the Association's commercial rules then in
effect. The arbitration will be conducted in Oklahoma City, Oklahoma. The
decision of the arbitrator will set forth in reasonable detail the basis for the
decision and will be binding on the parties. The arbitration award may be
confirmed by any court of competent jurisdiction.

                                       22
<PAGE>

      9.3 Notices. Any notices or other communications required or permitted
hereunder shall be sufficiently given if personally delivered to it or sent by
registered mail or certified mail, postage prepaid, or by prepaid telegram
addressed as follows:

If to Happy Food, to:      Frank H. Ward
                           6420 West Kensington Road
                           Oklahoma City, Oklahoma 73132
                           Telephone: (405) 826-0252

With copies to:            Stephen A. Zrenda, Jr., Esq.
                           Stephen A. Zrenda, Jr., P.C.
                           100 N. Broadway Avenue, Suite 2440
                           Oklahoma City, Oklahoma 73102-8608
                           Telephone: (405) 235-2111
                           Facsimile: (915) 975-8003

If to LEI, to:             Robert D. Battis, CEO
                           LEI Energetics, Inc.
                           3535 Quakerbridge Road
                           Mercerville, NJ 08619

With copies to:            Kramer Levin Naftalis & Frankel LLP
                           1177 Avenue of the Americas
                           New York, New York 10036
                           Attention: David M. Zlotchew, Esq.
                           Facsimile: (212) 715-8000

If to the Shareholders, to each Shareholder at the respective addresses and
facsimile numbers set forth on each such Shareholder's counterpart signature
page hereto,

or such other addresses as shall be furnished in writing by any party in the
manner for giving notices hereunder, and any such notice or communication shall
be deemed to have been given as of the date so delivered, mailed, or
telegraphed.

      9.4 Attorney's Fees. In the event that any party institutes any action or
suit to enforce this Agreement or to secure relief from any default hereunder or
breach hereof, the breaching party or parties shall reimburse the non-breaching
party or parties for all costs, including reasonable attorneys' fees, incurred
in connection therewith and in enforcing or collecting any judgment rendered
therein.

      9.5 Confidentiality. Each party hereto agrees with the other parties that,
unless and until the transactions contemplated by this Agreement have been
consummated, each party and their representatives will hold in strict confidence
all data and information obtained with respect to another party or any

                                       23
<PAGE>

subsidiary thereof from any representative, officer, director, or employee, or
from any books or records or from personal inspection, or such other party, and
shall not use such data or information or disclose the same to others, except
(i) to the extent such data or information is published, is a matter of public
knowledge, or is required by law to be published; and (ii) to the extent that
such data or information must be used or disclosed in order to consummate the
transactions contemplated by this Agreement.

      9.6 Expenses of Stock Exchange. Happy Food and LEI agree that they will
each bear their own costs and expenses in negotiating and closing the
transactions contemplated by this Agreement, including but not limited to,
attorneys' fees, accounting fees, due diligence expenses, travel, printing,
copying, mail, telephone and other related expenses.

      9.7 Schedules; Knowledge. Each of LEI and Happy Food is presumed to have
full knowledge of all information set forth in the other party's schedules
delivered pursuant to this Agreement.

      9.8 Third Party Beneficiaries. This contract is solely between Happy Food,
LEI and the Shareholders, and, except as specifically provided, no director,
officer, stockholder, employee, agent, independent contractor, or any other
person or entity shall be deemed to be a third party beneficiary of this
Agreement.

      9.9 Entire Agreement. This Agreement (including all exhibits and schedules
attached hereto) and the Shareholder Representation Letters represent the entire
agreement among the parties relating to the exchange of LEI Stock for Happy Food
Stock. There are no other courses of dealing, understandings, agreements,
representations, or warranties, written or oral, except as set forth herein.

      9.10 Survival; Termination. The representations, warranties, and covenants
of the respective parties shall survive the Closing Date and the consummation of
the transactions herein contemplated.

      9.11 Counterparts. This Agreement may be executed in multiple
counterparts, each of which shall be deemed an original and all of which taken
together shall be but a single instrument.

      9.12 Amendment, Modification, or Waiver. Every right and remedy provided
herein shall be cumulative with every other right and remedy, whether conferred
herein, at law, or in equity, and may be enforced concurrently herewith, and no
waiver by any party of the performance of any obligation by the other shall be
construed as a waiver of the same or any other default then, theretofore, or
thereafter occurring or existing. At any time prior to the Closing Date, this
Agreement may be amended or modified by a writing signed by LEI and Happy Food,
with respect to any of the terms contained herein, and any term or condition of

                                       24
<PAGE>

this Agreement may be waived or the time for performance hereof may be extended
by a writing signed by the party or parties for whose benefit the provision is
intended; provided, however, that no amendment, modification or waiver which, by
its express terms, affects the rights or obligations hereunder of a particular
Shareholder in a materially adverse manner and which does not, by its express
terms, affect the rights or obligations hereunder of all Shareholders with
similar rights or obligations in a similarly materially adverse manner shall be
binding as to such particularly affected Shareholder without the prior written
consent of such Shareholder.

                      [Signature pages follow immediately]

                                       25
<PAGE>

      IN WITNESS WHEREOF, the corporate parties hereto have caused this
Agreement to be executed by their respective officers, hereunto duly authorized,
as of the date first above-written.

                                   HAPPY FOOD CORPORATION

                                   By: /s/ Frank H. Ward
                                       -----------------------------------------
                                       Frank H. Ward, President

                                   LASER ENERGETICS, INC.

                                   By:
                                       -----------------------------------------
                                       Robert D. Battis, Chief Executive Officer

<PAGE>

      IN WITNESS WHEREOF, the corporate parties hereto have caused this
Agreement to be executed by their respective officers, hereunto duly authorized,
as of the date first above-written.

                                   HAPPY FOOD CORPORATION

                                   By:
                                       -----------------------------------------
                                       Frank H. Ward, President

                                   LASER ENERGETICS, INC.

                                   By: /s/ Robert D. Battis
                                       -----------------------------------------
                                       Robert D. Battis, Chief Executive Officer

<PAGE>

                 COUNTERPART SIGNATURE PAGE OF THE SHAREHOLDERS

      IN WITNESS WHEREOF, the undersigned shareholder of Laser Energetics, Inc.
has caused this counterpart signature page to this Agreement to be executed, as
of the date first above-written.

                                       Albert Angrisani
                                       -----------------------------------------
                                       (Name of Shareholder exactly as it
                                       appears on the books and records of
                                       Laser Energetics, Inc.)

                                       By: /s/ Albert Angrisani
                                           -------------------------------------
                                           Name:
                                           Title (if applicable):

                                       Address:   material omitted pursuant to
                                                  ------------------------------
                                                  confidentiality request
                                                  ------------------------------

                                                  ------------------------------
                                       Facsimile:
                                                  ------------------------------

<PAGE>

                 COUNTERPART SIGNATURE PAGE OF THE SHAREHOLDERS

      IN WITNESS WHEREOF, the undersigned shareholder of Laser Energetics, Inc.
has caused this counterpart signature page to this Agreement to be executed, as
of the date first above-written.

                                       ROBERT D. BATTIS
                                       -----------------------------------------
                                       (Name of Shareholder exactly as it
                                       appears on the books and records of
                                       Laser Energetics, Inc.)

                                       By: /s/ Robert D. Battis
                                           -------------------------------------
                                           Name:
                                           Title (if applicable):

                                       Address:   material omitted pursuant
                                                  ------------------------------
                                                  to confidentiality request
                                                  ------------------------------

                                                  ------------------------------
                                       Facsimile:
                                                  ------------------------------
<PAGE>

                 COUNTERPART SIGNATURE PAGE OF THE SHAREHOLDERS

      IN WITNESS WHEREOF, the undersigned shareholder of Laser Energetics, Inc.
has caused this counterpart signature page to this Agreement to be executed, as
of the date first above-written.

                                       Dr. Max M Berke
                                       -----------------------------------------
                                       (Name of Shareholder exactly as it
                                       appears on the books and records of
                                       Laser Energetics, Inc.)

                                       By:
                                           -------------------------------------
                                           Name:
                                           Title (if applicable):

                                       Address:   material omitted pursuant
                                                  ------------------------------
                                                  to confidentiality request
                                                  ------------------------------

                                                  ------------------------------
                                       Facsimile:
                                                  ------------------------------
<PAGE>

                 COUNTERPART SIGNATURE PAGE OF THE SHAREHOLDERS

      IN WITNESS WHEREOF, the undersigned shareholder of Laser Energetics, Inc.
has caused this counterpart signature page to this Agreement to be executed, as
of the date first above-written.

                                   Eileen Berke
                                   ---------------------------------------------
                                   (Name of Shareholder exactly as it
                                   appears on the books and records of
                                   Laser Energetics, Inc.)

                                   By: /s/ Eileen Berke
                                       -----------------------------------------
                                       Name: Eileen Berke
                                       Title (if applicable):

                                   Address:   material omitted pursuant
                                              ----------------------------------
                                              to confidentiality request
                                              ----------------------------------

                                              ----------------------------------
                                   Facsimile:
                                              ----------------------------------
<PAGE>

                 COUNTERPART SIGNATURE PAGE OF THE SHAREHOLDERS

      IN WITNESS WHEREOF, the undersigned shareholder of Laser Energetics, Inc.
has caused this counterpart signature page to this Agreement to be executed, as
of the date first above-written.

                                   Leonard Berke Trust, Eileen Berke, Trustee
                                   ---------------------------------------------
                                   (Name of Shareholder exactly as it
                                   appears on the books and records of
                                   Laser Energetics, Inc.)

                                   By: /s/ Eileen Berke
                                       -----------------------------------------
                                       Name: Eileen Berke
                                       Title (if applicable): Trustee

                                   Address:   material omitted pursuant
                                              ----------------------------------
                                              to confidentiality request
                                              ----------------------------------

                                              ----------------------------------
                                   Facsimile:
                                              ----------------------------------
<PAGE>

                 COUNTERPART SIGNATURE PAGE OF THE SHAREHOLDERS

      IN WITNESS WHEREOF, the undersigned shareholder of Laser Energetics, Inc.
has caused this counterpart signature page to this Agreement to be executed, as
of the date first above-written.

                                   Patrick Caulfield
                                   ---------------------------------------------
                                   (Name of Shareholder exactly as it
                                   appears on the books and records of
                                   Laser Energetics, Inc.)

                                   By: /s/ Patrick Caulfield
                                       -----------------------------------------
                                       Name:
                                       Title (if applicable):

                                   Address:   material omitted pursuant
                                              ----------------------------------
                                              to confidentiality request
                                              ----------------------------------

                                              ----------------------------------
                                   Facsimile:
                                              ----------------------------------
<PAGE>

                 COUNTERPART SIGNATURE PAGE OF THE SHAREHOLDERS

      IN WITNESS WHEREOF, the undersigned shareholder of Laser Energetics, Inc.
has caused this counterpart signature page to this Agreement to be executed, as
of the date first above-written.

                                   Thomas A. Cellucci
                                   ---------------------------------------------
                                   (Name of Shareholder exactly as it
                                   appears on the books and records of
                                   Laser Energetics, Inc.)

                                   By: /s/ Thomas A. Cellucci
                                       -----------------------------------------
                                       Name:
                                       Title (if applicable): N/A

                                   Address:   material omitted pursuant
                                              ----------------------------------
                                              to confidentiality request
                                              ----------------------------------

                                              ----------------------------------
                                   Facsimile:
                                              ----------------------------------
<PAGE>

                 COUNTERPART SIGNATURE PAGE OF THE SHAREHOLDERS

      IN WITNESS WHEREOF, the undersigned shareholder of Laser Energetics, Inc.
has caused this counterpart signature page to this Agreement to be executed, as
of the date first above-written.

                                   Cincinnati Sub-Zero Products, Inc.
                                   ---------------------------------------------
                                   (Name of Shareholder exactly as it
                                   appears on the books and records of
                                   Laser Energetics, Inc.)

                                   By: /s/ Steven J. Berke
                                       -----------------------------------------
                                       Name: Steven J. Berke
                                       Title (if applicable): President

                                   Address:   material omitted pursuant
                                              ----------------------------------
                                              to confidentiality request
                                              ----------------------------------

                                              ----------------------------------
                                   Facsimile:
                                              ----------------------------------
<PAGE>

                 COUNTERPART SIGNATURE PAGE OF THE SHAREHOLDERS

      IN WITNESS WHEREOF, the undersigned shareholder of Laser Energetics, Inc.
has caused this counterpart signature page to this Agreement to be executed, as
of the date first above-written.

                                   DORIS R. DWORKIN
                                   ---------------------------------------------
                                   (Name of Shareholder exactly as it
                                   appears on the books and records of
                                   Laser Energetics, Inc.)

                                   By: /s/ Doris R. Dworkin
                                       -----------------------------------------
                                       Name:
                                       Title (if applicable):

                                   Address:   material omitted pursuant
                                              ----------------------------------
                                              to confidentiality request
                                              ----------------------------------

                                              ----------------------------------
                                   Facsimile:
                                              ----------------------------------
<PAGE>

                 COUNTERPART SIGNATURE PAGE OF THE SHAREHOLDERS

      IN WITNESS WHEREOF, the undersigned shareholder of Laser Energetics, Inc.
has caused this counterpart signature page to this Agreement to be executed, as
of the date first above-written.

                                   ELLIOT F. DWORKIN
                                   ---------------------------------------------
                                   (Name of Shareholder exactly as it
                                   appears on the books and records of
                                   Laser Energetics, Inc.)

                                   By: /s/ Elliot F. Dworkin
                                       -----------------------------------------
                                       Name:
                                       Title (if applicable):

                                   Address:   material omitted pursuant
                                              ----------------------------------
                                              to confidentiality request
                                              ----------------------------------

                                              ----------------------------------
                                   Facsimile:
                                              ----------------------------------
<PAGE>

                 COUNTERPART SIGNATURE PAGE OF THE SHAREHOLDERS

      IN WITNESS WHEREOF, the undersigned shareholder of Laser Energetics, Inc.
has caused this counterpart signature page to this Agreement to be executed, as
of the date first above-written.

                                   MARC DWORKIN
                                   ---------------------------------------------
                                   (Name of Shareholder exactly as it
                                   appears on the books and records of
                                   Laser Energetics, Inc.)

                                   By: /s/ Marc Dworkin
                                       -----------------------------------------
                                       Name:
                                       Title (if applicable):

                                   Address:   material omitted pursuant
                                              ----------------------------------
                                              to confidentiality request
                                              ----------------------------------

                                              ----------------------------------
                                   Facsimile:
                                              ----------------------------------
<PAGE>

                 COUNTERPART SIGNATURE PAGE OF THE SHAREHOLDERS

      IN WITNESS WHEREOF, the undersigned shareholder of Laser Energetics, Inc.
has caused this counterpart signature page to this Agreement to be executed, as
of the date first above-written.

                                   THE ESTATE OF SIDNEY DWORKIN
                                   ---------------------------------------------
                                   (Name of Shareholder exactly as it
                                   appears on the books and records of
                                   Laser Energetics, Inc.)

                                   By: /s/ Estate of Sidney Dworkin
                                       /s/ Doris R. Dworking, Personal Rep.
                                       -----------------------------------------
                                       Name: Doris R. Dworkin
                                       Title (if applicable): Executor

                                   Address:   material omitted pursuant
                                              ----------------------------------
                                              to confidentiality request
                                              ----------------------------------

                                              ----------------------------------
                                   Facsimile:
                                              ----------------------------------
<PAGE>

Frank H. Ward, President

LASER ENERGETICS, INC.

By:
    -----------------------------------------
    Robert D. Battis, Chief Executive Officer

                 COUNTERPART SIGNATURE PAGE OF THE SHAREHOLDERS

      IN WITNESS WHEREOF, the undersigned shareholder of Laser Energetics, Inc.
has caused this counterpart signature page to this Agreement to be executed, as
of the date first above-written.

                                   JAMES DWYER
                                   ---------------------------------------------
                                   (Name of Shareholder exactly as it
                                   appears on the books and records of
                                   Laser Energetics, Inc.)

                                   By: /s/ James Dwyer
                                       -----------------------------------------
                                   Name: James Dwyer

                                   Title (if applicable): material omitted
                                                          pursuant to
                                                          confidentiality
                                                          request

<PAGE>

                 COUNTERPART SIGNATURE PAGE OF THE SHAREHOLDERS

      IN WITNESS WHEREOF, the undersigned shareholder of Laser Energetics, Inc.
has caused this counterpart signature page to this Agreement to be executed, as
of the date first above-written.

                                   Kevin Engelhard
                                   ---------------------------------------------
                                   (Name of Shareholder exactly as it
                                   appears on the books and records of
                                   Laser Energetics, Inc.)

                                   By: /s/ Kevin Engelhard
                                       -----------------------------------------
                                       Name:
                                       Title (if applicable):

                                   Address:   material omitted pursuant
                                              ----------------------------------
                                              to confidentiality request
                                              ----------------------------------

                                              ----------------------------------
                                   Facsimile:
                                              ----------------------------------
<PAGE>

                 COUNTERPART SIGNATURE PAGE OF THE SHAREHOLDERS

      IN WITNESS WHEREOF, the undersigned shareholder of Laser Energetics, Inc.
has caused this counterpart signature page to this Agreement to be executed, as
of the date first above-written.

                                   DIANE Di Giulio
                                   ---------------------------------------------
                                   (Name of Shareholder exactly as it
                                   appears on the books and records of
                                   Laser Energetics, Inc.)

                                   By: /s/ Diane Di Giulio
                                       -----------------------------------------
                                       Name:
                                       Title (if applicable):

                                   Address:   material omitted pursuant
                                              ----------------------------------
                                              to confidentiality request
                                              ----------------------------------

                                              ----------------------------------
                                   Facsimile:
                                              ----------------------------------
<PAGE>

                 COUNTERPART SIGNATURE PAGE OF THE SHAREHOLDERS

      IN WITNESS WHEREOF, the undersigned shareholder of Laser Energetics, Inc.
has caused this counterpart signature page to this Agreement to be executed, as
of the date first above-written.

                                   HAROLD A. JONES
                                   ---------------------------------------------
                                   (Name of Shareholder exactly as it
                                   appears on the books and records of
                                   Laser Energetics, Inc.)

                                   By: /s/ Harold A. Jones
                                       -----------------------------------------
                                       Name:
                                       Title (if applicable):

                                   Address:   material omitted pursuant
                                              ----------------------------------
                                              to confidentiality request
                                              ----------------------------------

                                              ----------------------------------
                                   Facsimile:
                                              ----------------------------------
<PAGE>

                 COUNTERPART SIGNATURE PAGE OF THE SHAREHOLDERS

      IN WITNESS WHEREOF, the undersigned shareholder of Laser Energetics, Inc.
has caused this counterpart signature page to this Agreement to be executed, as
of the date first above-written.

                                   Ellen Effinger Kassow (Ellin Effinger Kassow)
                                   ---------------------------------------------
                                   (Name of Shareholder exactly as it
                                   appears on the books and records of
                                   Laser Energetics, Inc.)

                                   By: /s/ Dr. Ellen Effinger Kassow
                                       -----------------------------------------
                                       Name:
                                       Title (if applicable):

                                   Address:   material omitted pursuant
                                              ----------------------------------
                                              to confidentiality request
                                              ----------------------------------

                                              ----------------------------------
                                   Facsimile:
                                              ----------------------------------
<PAGE>

                 COUNTERPART SIGNATURE PAGE OF THE SHAREHOLDERS

      IN WITNESS WHEREOF, the undersigned shareholder of Laser Energetics, Inc.
has caused this counterpart signature page to this Agreement to be executed, as
of the date first above-written.

                                   VINCENT KHAU
                                   ---------------------------------------------
                                   (Name of Shareholder exactly as it
                                   appears on the books and records of
                                   Laser Energetics, Inc.)

                                   By: /s/ Vincent Khau
                                       -----------------------------------------
                                       Name:
                                       Title (if applicable):

                                   Address:   material omitted pursuant
                                              ----------------------------------
                                              to confidentiality request
                                              ----------------------------------

                                              ----------------------------------
                                   Facsimile:
                                              ----------------------------------
<PAGE>

                 COUNTERPART SIGNATURE PAGE OF THE SHAREHOLDERS

      IN WITNESS WHEREOF, the undersigned shareholder of Laser Energetics, Inc.
has caused this counterpart signature page to this Agreement to be executed, as
of the date first above-written.

                                   JOHN T LIVECCHI M.D
                                   ---------------------------------------------
                                   (Name of Shareholder exactly as it
                                   appears on the books and records of
                                   Laser Energetics, Inc.)

                                   By: /s/ John T LiVecchi M.D
                                       -----------------------------------------
                                       Name:
                                       Title (if applicable):

                                   Address:   material omitted pursuant
                                              ----------------------------------
                                              to confidentiality request
                                              ----------------------------------

                                              ----------------------------------
                                   Facsimile:
                                              ----------------------------------
<PAGE>

                 COUNTERPART SIGNATURE PAGE OF THE SHAREHOLDERS

      IN WITNESS WHEREOF, the undersigned shareholder of Laser Energetics, Inc.
has caused this counterpart signature page to this Agreement to be executed, as
of the date first above-written.

                                   HOWARD MAYER
                                   ---------------------------------------------
                                   (Name of Shareholder exactly as it
                                   appears on the books and records of
                                   Laser Energetics, Inc.)

                                   By: /s/ Howard Mayer
                                       -----------------------------------------
                                       Name:
                                       Title (if applicable):

                                   Address:   material omitted pursuant
                                              ----------------------------------
                                              to confidentiality request
                                              ----------------------------------

                                              ----------------------------------
                                   Facsimile:
                                              ----------------------------------
<PAGE>

                 COUNTERPART SIGNATURE PAGE OF THE SHAREHOLDERS

      IN WITNESS WHEREOF, the undersigned shareholder of Laser Energetics, Inc.
has caused this counterpart signature page to this Agreement to be executed, as
of the date first above-written.

                                   Jay W. Nash
                                   ---------------------------------------------
                                   (Name of Shareholder exactly as it
                                   appears on the books and records of
                                   Laser Energetics, Inc.)

                                   By: /s/ Jay W. Nash
                                       -----------------------------------------
                                       Name:
                                       Title (if applicable):

                                   Address:   material omitted pursuant
                                              ----------------------------------
                                              to confidentiality request
                                              ----------------------------------

                                              ----------------------------------
                                   Facsimile:
                                              ----------------------------------
<PAGE>

                 COUNTERPART SIGNATURE PAGE OF THE SHAREHOLDERS

      IN WITNESS WHEREOF, the undersigned shareholder of Laser Energetics, Inc.
has caused this counterpart signature page to this Agreement to be executed, as
of the date first above-written.

                                   Nevyas Eye Associates PC 401K Profit Sharing
                                   Plan FBO A/C of H. Nevyas
                                   ---------------------------------------------
                                   (Name of Shareholder exactly as it
                                   appears on the books and records of
                                   Laser Energetics, Inc.)

                                   By: /s/ Herbert J. Nevyas Trustee
                                       -----------------------------------------
                                       Name: Herbert J. Nevyas
                                       Title (if applicable): Trustee

                                   Address:   material omitted pursuant
                                              ----------------------------------
                                              to confidentiality request
                                              ----------------------------------

                                              ----------------------------------
                                   Facsimile:
                                              ----------------------------------
<PAGE>

                 COUNTERPART SIGNATURE PAGE OF THE SHAREHOLDERS

      IN WITNESS WHEREOF, the undersigned shareholder of Laser Energetics, Inc.
has caused this counterpart signature page to this Agreement to be executed, as
of the date first above-written.

                                   Herbert Nevyas
                                   ---------------------------------------------
                                   (Name of Shareholder exactly as it
                                   appears on the books and records of
                                   Laser Energetics, Inc.)

                                   By: /s/ Herbert Nevyas
                                       -----------------------------------------
                                       Name: Herbert Nevyas
                                       Title (if applicable):

                                   Address:   material omitted pursuant
                                              ----------------------------------
                                              to confidentiality request
                                              ----------------------------------

                                              ----------------------------------
                                   Facsimile:
                                              ----------------------------------
<PAGE>

                 COUNTERPART SIGNATURE PAGE OF THE SHAREHOLDERS

      IN WITNESS WHEREOF, the undersigned shareholder of Laser Energetics, Inc.
has caused this counterpart signature page to this Agreement to be executed, as
of the date first above-written.

                                   Randall Peairs
                                   ---------------------------------------------
                                   (Name of Shareholder exactly as it
                                   appears on the books and records of
                                   Laser Energetics, Inc.)

                                   By: /s/ Randall Peairs
                                       -----------------------------------------
                                       Name:
                                       Title (if applicable):

                                   Address:   material omitted pursuant
                                              ----------------------------------
                                              to confidentiality request
                                              ----------------------------------

                                              ----------------------------------
                                   Facsimile:
                                              ----------------------------------
<PAGE>

                 COUNTERPART SIGNATURE PAGE OF THE SHAREHOLDERS

      IN WITNESS WHEREOF, the undersigned shareholder of Laser Energetics, Inc.
has caused this counterpart signature page to this Agreement to be executed, as
of the date first above-written.

                                   Prendiville Revocable Trust
                                   ---------------------------------------------
                                   (Name of Shareholder exactly as it
                                   appears on the books and records of
                                   Laser Energetics, Inc.)

                                   By: /s/ Kevin Prediville, Trustee
                                       -----------------------------------------
                                       Name:
                                       Title (if applicable):

                                   Address:   material omitted pursuant
                                              ----------------------------------
                                              to confidentiality request
                                              ----------------------------------

                                              ----------------------------------
                                   Facsimile:
                                              ----------------------------------
<PAGE>

                 COUNTERPART SIGNATURE PAGE OF THE SHAREHOLDERS

      IN WITNESS WHEREOF, the undersigned shareholder of Laser Energetics, Inc.
has caused this counterpart signature page to this Agreement to be executed, as
of the date first above-written.

                                   RICHTER CONST. Co
                                   ---------------------------------------------
                                   (Name of Shareholder exactly as it
                                   appears on the books and records of
                                   Laser Energetics, Inc.)

                                   By: /s/ Gerald Richter, Pres
                                       -----------------------------------------
                                       Name:
                                       Title (if applicable):

                                   Address:   material omitted pursuant
                                              ----------------------------------
                                              to confidentiality request
                                              ----------------------------------

                                              ----------------------------------
                                   Facsimile:
                                              ----------------------------------
<PAGE>

                 COUNTERPART SIGNATURE PAGE OF THE SHAREHOLDERS

      IN WITNESS WHEREOF, the undersigned shareholder of Laser Energetics, Inc.
has caused this counterpart signature page to this Agreement to be executed, as
of the date first above-written.

                                   GERALD RICHTER
                                   ---------------------------------------------
                                   (Name of Shareholder exactly as it
                                   appears on the books and records of
                                   Laser Energetics, Inc.)

                                   By: /s/ Gerald Richter
                                       -----------------------------------------
                                       Name:
                                       Title (if applicable):

                                   Address:   material omitted pursuant
                                              ----------------------------------
                                              to confidentiality request
                                              ----------------------------------

                                              ----------------------------------
                                   Facsimile:
                                              ----------------------------------
<PAGE>

                 COUNTERPART SIGNATURE PAGE OF THE SHAREHOLDERS

      IN WITNESS WHEREOF, the undersigned shareholder of Laser Energetics, Inc.
has caused this counterpart signature page to this Agreement to be executed, as
of the date first above-written.

                                   THOMAS SCHWARTZ
                                   ---------------------------------------------
                                   (Name of Shareholder exactly as it
                                   appears on the books and records of
                                   Laser Energetics, Inc.)

                                   By: /s/ Thomas Schwartz
                                       -----------------------------------------
                                       Name:
                                       Title (if applicable):

                                   Address:   material omitted pursuant
                                              ----------------------------------
                                              to confidentiality request
                                              ----------------------------------

                                              ----------------------------------
                                   Facsimile:
                                              ----------------------------------
<PAGE>

                 COUNTERPART SIGNATURE PAGE OF THE SHAREHOLDERS

      IN WITNESS WHEREOF, the undersigned shareholder of Laser Energetics, Inc.
has caused this counterpart signature page to this Agreement to be executed, as
of the date first above-written.

                                   SCHWARTZBARD GOLDMAN ASSOCIATES
                                   ---------------------------------------------
                                   (Name of Shareholder exactly as it
                                   appears on the books and records of
                                   Laser Energetics, Inc.)

                                   By: /s/ Michael Goldman
                                       -----------------------------------------
                                       Name: Michael Goldman
                                       Title (if applicable): General Partner

                                   Address:   material omitted pursuant
                                              ----------------------------------
                                              to confidentiality request
                                              ----------------------------------

                                              ----------------------------------
                                   Facsimile:
                                              ----------------------------------
<PAGE>

                 COUNTERPART SIGNATURE PAGE OF THE SHAREHOLDERS

      IN WITNESS WHEREOF, the undersigned shareholder of Laser Energetics, Inc.
has caused this counterpart signature page to this Agreement to be executed, as
of the date first above-written.

                                   Trey Resources, Inc.
                                   ---------------------------------------------
                                   (Name of Shareholder exactly as it
                                   appears on the books and records of
                                   Laser Energetics, Inc.)

                                   By: /s/ Mark Meller
                                       -----------------------------------------
                                       Name:
                                       Title (if applicable): CEO

                                   Address:   material omitted pursuant
                                              ----------------------------------
                                              to confidentiality request
                                              ----------------------------------

                                              ----------------------------------
                                   Facsimile:
                                              ----------------------------------
<PAGE>

                 COUNTERPART SIGNATURE PAGE OF THE SHAREHOLDERS

      IN WITNESS WHEREOF, the undersigned shareholder of Laser Energetics, Inc.
has caused this counterpart signature page to this Agreement to be executed, as
of the date first above-written.

                                   Paul Vessa
                                   ---------------------------------------------
                                   (Name of Shareholder exactly as it
                                   appears on the books and records of
                                   Laser Energetics, Inc.)

                                   By: /s/ Paul Vessa
                                       -----------------------------------------
                                       Name:
                                       Title (if applicable):

                                   Address:   material omitted pursuant
                                              ----------------------------------
                                              to confidentiality request
                                              ----------------------------------

                                              ----------------------------------
                                   Facsimile:
                                              ----------------------------------
<PAGE>

                 COUNTERPART SIGNATURE PAGE OF THE SHAREHOLDERS

      IN WITNESS WHEREOF, the undersigned shareholder of Laser Energetics, Inc.
has caused this counterpart signature page to this Agreement to be executed, as
of the date first above-written.

                                   Frank H. Ward
                                   ---------------------------------------------
                                   (Name of Shareholder exactly as it
                                   appears on the books and records of
                                   Laser Energetics, Inc.)

                                   By: /s/ Frank H. Ward
                                       -----------------------------------------
                                       Name:
                                       Title (if applicable):

                                   Address:   material omitted pursuant
                                              ----------------------------------
                                              to confidentiality request
                                              ----------------------------------

                                              ----------------------------------
                                   Facsimile:
                                              ----------------------------------
<PAGE>

                 COUNTERPART SIGNATURE PAGE OF THE SHAREHOLDERS

      IN WITNESS WHEREOF, the undersigned shareholder of Laser Energetics, Inc.
has caused this counterpart signature page to this Agreement to be executed, as
of the date first above-written.

                                   Gary M. Willis
                                   ---------------------------------------------
                                   (Name of Shareholder exactly as it
                                   appears on the books and records of
                                   Laser Energetics, Inc.)

                                   By: /s/ Gary M. Willis
                                       -----------------------------------------
                                       Name:
                                       Title (if applicable):

                                   Address:   material omitted pursuant
                                              ----------------------------------
                                              to confidentiality request
                                              ----------------------------------

                                              ----------------------------------
                                   Facsimile:
                                              ----------------------------------
<PAGE>

                                   Schedule I

                                       to

                      AGREEMENT AND PLAN OF SHARE EXCHANGE

                             Dated May ______, 2005

            1. Investment Intent. I recognize that an investment in the Happy
Securities involves a high degree of risk including, but not limited to, the
following: (i) the Company remains a development stage business with limited
operating history and requires substantial funds; (ii) an investment in the
Company is highly speculative, and only investors who can afford the loss of
their entire investment should consider investing in the Company or the Happy
Securities, (iii) I may not be able to liquidate my investment; (iv)
transferability of the Happy Securities is extremely limited; (v) in the event
of a disposition of the Happy Securities, I could sustain the loss of my entire
investment and (vi) the Company has not paid any dividends since inception and
does not anticipate the payment of dividends on the Common Stock in the
foreseeable future.

            2. Lack of Liquidity. I confirm that I am able (i) to bear the
economic risk of this investment, (ii) to hold the Happy Securities for an
indefinite period of time, and (iii) presently to afford a complete loss of my
investment; and represent that I have sufficient liquid assets so that the
illiquidity associated with this investment will not cause any undue financial
difficulties or affect my ability to provide for my current needs and possible
financial contingencies, and that my commitment to all speculative investments
is reasonable in relation to my net worth and annual income.

            3. Knowledge and Experience. I hereby acknowledge and represent that
I have prior investment experience, including investment in securities that are
non-listed, unregistered and are not traded on the Nasdaq National or SmallCap
Market, nor on the National Association of Securities Dealers, Inc.'s (the
"NASD") automated quotation system.

            4. Receipt of Information. I have been furnished by the Company with
all information regarding the Company which I have requested or desired to know,
have been afforded the opportunity to ask questions of, and to receive answers
from, duly authorized officers or other representatives of the Company
concerning the terms and conditions of the Exchange Agreement, the Happy
Securities and the affairs of the Company and have received any additional
information which I or my representative has requested.

            5. Reliance on Information. I have relied solely upon the
information provided by the Company in the Exchange Agreement in making the

<PAGE>

decision to invest in the Happy Securities. To the extent necessary, I have
retained, at my sole expense, and relied upon, appropriate professional advice
regarding the investment, tax and legal merits and consequences of the Exchange
Agreement and my acquisition of the Happy Securities.

            6. No Solicitation. I represent that no Happy Securities were
offered or sold to me by means of any form of general solicitation or general
advertising, and in connection therewith I neither: (A) received or reviewed any
advertisement, article, notice or other communication published in a newspaper
or magazine or similar media or broadcast over television or radio whether
closed circuit, or generally available; nor (B) attended any seminar meeting or
industry investor conference whose attendees were invited by any general
solicitation or general advertising.

            7. Registration. I hereby acknowledge that the offering of Happy
Securities pursuant to the Exchange Agreement has not been reviewed by the
Securities and Exchange Commission or any state regulatory authority, since such
offering is intended to be exempt from the registration requirements of Section
5 of the Securities Act of 1933, as amended (the "Securities Act"), pursuant to
Regulation D promulgated thereunder. I shall not sell or otherwise transfer the
Happy Securities unless such Happy Securities are registered under the
Securities Act or unless an exemption from such registration is available.

            8. Purchase for own Account. I understand that the Happy Securities
have not been registered under the Securities Act by reason of a claimed
exemption under the provisions of the Securities Act which depends, in part,
upon my investment intention. In this connection, I hereby represent that I am
acquiring the Happy Securities for my own account for investment and not with a
view toward the resale or distribution to others or for resale in connection
with, any distribution or public offering (within the meaning of the Securities
Act), nor with any present intention of distributing or selling the same and I
have no present or contemplated agreement, undertaking, arrangement, obligation
or commitment providing for the disposition thereof.

            9. Holding Period. I understand that there is no public trading
market for the Happy Securities and that no such market may ever develop. I
understand and hereby acknowledge that the Company is under no obligation to
register any of the Happy Securities under the Securities Act or any applicable
non-United States, state securities or "blue sky" laws. I shall hold the Company
and its directors, officers, employees, controlling persons and agents and their
respective heirs, representatives, successors and assigns harmless from, and
shall indemnify them against, all liabilities, costs and expenses incurred by
them as a result of (i) any misrepresentation made by me contained in this
letter, (ii) any sale or distribution by me in violation of the Securities Act
or any applicable non-United States, state securities or "blue sky" laws or
(iii) any untrue statement made by me.

                                       27
<PAGE>

            10. Legends. I consent to the placement of the following legend
regarding restrictions on transfer pursuant to the applicable securities laws on
any certificate or other document evidencing the Happy Securities:

      THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE
      SECURITIES ACT OF 1933, AS AMENDED, OR UNDER ANY STATE SECURITIES OR "BLUE
      SKY" LAWS. THE SECURITIES HAVE BEEN ACQUIRED FOR INVESTMENT AND MAY NOT BE
      SOLD OR TRANSFERRED FOR VALUE IN THE ABSENCE OF AN EFFECTIVE REGISTRATION
      OF THEM UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND ANY APPLICABLE
      STATE SECURITIES LAWS OR AN OPINION OF COUNSEL ACCEPTABLE TO HAPPY FOOD
      CORPORATION THAT AN EXEMPTION FROM SUCH REGISTRATION REQUIREMENTS IS
      AVAILABLE WITH RESPECT TO SUCH SALE OR TRANSFER.

            I am aware that the Company will make a notation in its appropriate
records with respect to the restrictions on the transferability of the Happy
Securities.

            11. Address. I hereby represent that my address set forth at the top
of this letter is the address of my primary residence.

            12. Authority. This letter constitutes my legal, valid and binding
obligation, enforceable against me by the Company in accordance with its terms.

            13. Securities Laws. I acknowledge that at such time, if ever, as
the Happy Securities are registered, sales of the Happy Securities will be
subject to applicable non-United States and state securities laws.

            14. Beneficial Owner. I will be the sole beneficial owner of the
Happy Securities that I acquire pursuant to the Exchange Agreement.

            15. Reliance on Representation and Warranties. I understand that the
Happy Securities are being offered and issued to the undersigned in reliance on
specific exemptions from the registration requirements of United States Federal
and state securities laws and that the Company is relying upon the truth and
accuracy of the representations, warranties, agreements, acknowledgments and
understandings of the undersigned set forth herein in order to determine the
applicability of such exemptions and the suitability of the undersigned to
acquire the Happy Securities.

<PAGE>

                                    EXHIBIT A
                             (Terms of HPYF Class B)

            Each holder of Class B Common Stock shall have the right, at any
time after May __, 2007, to convert each share of Class B Common Stock into the
number of shares of Class A Common Stock calculated by dividing the number of
Class B Common Stock being converted by fifty percent (50%) of the lowest price
that the Company had previously issued its Class A Common Stock since the Class
B Common Stock were issued. By way of example only, if 100 shares of Class B
Common Stock are being converted and the lowest price that the Company had
previously issued its Class A Common Stock since the Class B Common Stock were
issued is $1.00, such Class B Common Stock would be converted to 200 shares of
Class A Common Stock. Every holder of the outstanding shares of the Class B
Common Stock shall be entitled on each matter to cast the number of votes equal
to the number of shares of Class A Common Stock that would be issued upon the
conversion of the Class B Common Stock held by that holder, had all the
outstanding Class B Common Stock held by that holder been converted on the
record date used for purposes of determining which shareholders would vote in
such an election. With respect to all matters upon which shareholders are
entitled to vote or to which shareholders are entitled to give consent, the
holders of the outstanding shares of Class B Common Stock shall vote together
with Class A Common Stock without regard to class, except as to those matters on
which the separate class voting is required by applicable law. There shall be no
cumulative voting by the shareholders. Each holder of Class B Common Stock shall
receive dividends or other distributions, as declared, equal to the dividends
declared on such number of shares of Class A Common Stock that would be issued
upon the conversion of the Class B Common Stock, had all the outstanding Class B
Common Stock been converted on the record date established for the purposes
distributing any divided or other shareholder distribution.

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