Document:

EXHIBIT 10.57

                                COMPOSITECH LTD.
                               120 Ricefield Lane
                            Hauppauge, New York 11788

                                                               November 22, 1999

SovCap Equity Partners, Ltd.
Sovereign Capital Advisors, LLC
3340 Peachtree Road, NE, Suite 1965
Atlanta, Georgia 30326
Facsimile:
Attention: Mr. Paul D. Hamm

Arab Commerce Bank, Ltd.
P.O. Box 309, Grand Cayman
Cayman Islands
Facsimile: 0171-437-2413
Attention: A. De Nazareth

Correllus International Ltd.
Calle Azucera 37
Torreblanca Del Sol
296 40 Fuengirola, Spain
Facsimile: (34) 95-2477043
Attention: Jan Lander

Bronia GmbH
Baarerstrasse 73, Postfach 2515
6302 Zug, Switzerland
Facsimile:
Attention: Bernard Muller

Patterson, Belknap, Webb & Tyler LLP
1133 Avenue of the Americas
New York, NY  10036
Attention: Edward F. Cox

Dear Sirs:

     Reference is made to the Series 1 Bridge Note Purchase and Security
Agreement, dated March 16, 1999, by and among Compositech Ltd. and the
Purchasers listed therein (the "Note Purchase Agreement"), as amended by that
certain First Amendment to the Series 1 Bridge Note Purchase and Security
Agreement, dated April 21, 1999 and executed by the Company and certain
Purchasers in connection with the Second Closing (the "First

<PAGE>

Amendment") and that certain Second Amendment to the Series 1 BridgeNote
Purchase and Security Agreement, dated July 28, 1999 and executed by the Company
and certain Purchasers in connection with the Third Closing (the Second
Amendment, together with the Note Purchase Agreement and the First Amendment the
"Purchase Agreement"). Defined terms, used but not defined herein, have the
meanings ascribed thereto in the Purchase Agreement.

     In order to (i) effect the extension and modification of those certain
Bridge Notes previously issued to SovCap Equity Partners, Ltd. ("SovCap") on
March 16, 1999, SovCap, Correllus International Ltd. and Arab Commerce Bank Ltd.
on April 21, 1999 and SovCap and Bronia GmbH on July 28, 1999 as set forth on
Exhibit A hereto (the "Old Bridge Notes"); (ii) effect the modification of the
Repricing Warrants attached to the Old Bridge Notes (the "Old Repricing
Warrants"); and (iii) delay, until March 31, 2000, the exercise of all warrants
issued under and pursuant to the Purchase Agreement, the Placement Agency
Agreement, dated March 16, 1999 (the "Placement Agreement"), by and between the
Company and Sovereign Capital Advisors, LLC (the "Placement Agent"), the Warrant
Agreement, dated March 16, 1999, by and between the Company and the Placement
Agent (the "Warrant Agreement") or in connection herewith, as previously agreed
in that certain letter agreement, dated October 27, 1999 (the "Side Letter"), by
and between the Company and SovCap, as Representative for the Purchasers, each
of the parties hereto hereby agrees as follows:

     a) The Company and the Purchasers hereby appoint Patterson, Belknap, Webb &
Tyler LLP, and Patterson, Belknap, Webb & Tyler LLP hereby accepts its
appointment, as escrow agent (the "Escrow Agent") to discharge the duties set
forth herein. All Old Bridge Notes and Old Repricing Warrants will be delivered
to the Escrow Agent by November 23, 1999. Bridge Notes, dated as of October 4,
1999, in the following denominations and in the name of the following Purchasers
(the "New Bridge Notes") will be delivered fully executed to the Escrow Agent by
November 23, 1999:

        SovCap                                $739,200.00  ("S1BFN 7")
        SovCap                                $189,025.00  ("S1BFN 8")
        Correllus International Ltd.          $290,808.00 ("S1BFN 9")
        Arab Commerce Bank Ltd.               $145,404.00 ("S1BFN 10")
        Bronia GmbH                           $334,500.00 ("S1BFN 11")
        SovCap                                $267,600.00 ("S1BFN 12")

Attached to each New Bridge Note delivered to the Escrow Agent will be a fully
executed Repricing Warrant (the "New Repricing Warrants").

     b) Warrants, dated as of October 4, 1999, to purchase shares of Common
Stock in the following denominations in the name of the following Purchasers
(the "New Warrants") will be delivered fully executed to the Escrow Agent by
November 23, 1999:

                  SovCap                             110,000
                  SovCap                              23,400
                  Correllus International Ltd.        36,000
                  Arab Commerce Bank Ltd.             18,000
                  Bronia GmbH                         19,250
                  SovCap                              15,400

                                      -2-
<PAGE>

     c) A fully executed warrant certificate to purchase 94,821 shares of Common
Stock dated as of October 4, 1999, in the name of the Placement Agent and in the
form designated in the Warrant Agreement (the "New Placement Agent Warrant")
shall be delivered to the Escrow Agent by November 23, 1999. A fully executed
promissory note, dated as of October 4, 1999, in the form designated for the
Bridge Notes in the Purchase Agreement and in the name of the Placement Agent
for $98,327.00 (the "Placement Bridge Note") together with a fully executed
Repricing Warrant (the "Placement Repricing Warrant") shall be delivered to the
Escrow Agent by November 23, 1999.

     d) Notwithstanding their respective terms, the parties hereto agree that
the Warrants, warrant certificates previously issued in connection with the
Placement Agreement or the Warrant Agreement (the "Placement Agent Warrants"),
the New Warrants and the New Placement Agent Warrant shall not be exercisable
prior to March 31, 2000.

     e) The Old Bridge Notes and Old Repricing Warrants (the "Old Documents")
and the New Bridge Notes, New Repricing Warrants, New Warrants, the New
Placement Agent Warrant, Placement Bridge Note and the Placement Repricing
Warrant (the "New Documents") shall be held by the Escrow Agent until the first
to occur of (i) a closing on the issuance and sale of 146,000 shares of Series C
8% Convertible Preferred Stock, par value $.01, of the Company to The Shaar Fund
Ltd. for an aggregate purchase price of $1,460,000 (the "Shaar Closing") as
evidenced by a certificate to such effect delivered by the Company to the Escrow
Agent or (ii) December 6, 1999 as such date may be extended from time to time by
written agreement between the Company and SovCap, as Representative for the
Purchasers, notice of which extension shall be delivered to the Escrow Agent
(such earlier date, the "Escrow Termination Date").

     f) Concurrently with the occurrence of the Shaar Closing:

          1.   The Company shall provide the Escrow Agent with a certificate
               evidencing that the Shaar Closing has occurred. At such time the
               Old Documents shall be released from escrow, and delivered to the
               Company as promptly as practicable thereafter, and the New
               Documents shall be released from escrow and delivered to the
               Balboni Law Group, LLC ("BLG"), as attorneys and agent for the
               Purchasers and the Placement Agent, by overnight or next-day
               courier. At the time of the Shaar Closing, the Old Notes and the
               Old Repricing Warrants will automatically become null and void
               without further force or effect. Delivery of the New Documents to
               BLG by the Escrow Agent shall be deemed delivery to the
               Purchasers and the Placement Agent for all purposes under this
               Agreement.

          2.   The first sentence of the Background section of the Registration
               Rights Agreement will automatically be amended to insert the
               following phrase

                                      -3-
<PAGE>

               immediately after the phrase "Series 1 Bridge Notes": "(as the
               same may be amended, renewed, extended, replaced, substituted,
               exchanged, supplemented or otherwise modified from time to time,
               the "Bridge Notes")" and to delete the defined term (the "Series
               1Bridge Notes"). The first sentence of Section 2(a) of the
               Registration Rights Agreement will be automatically amended to
               extend the Filing Deadline (as defined therein) to a date 30 days
               after the date of the Shaar Closing and the second and third
               sentences of Section 2(a) will automatically be amended to read
               in their entirety as follows: "The Registration Statement(s)
               shall state that, in accordance with Rule 416 promulgated under
               the 1933 Act, such Registration Statement(s) also covers such
               indeterminate number of additional shares of Common Stock as may
               become issuable upon exercise of the Purchaser Warrants to
               prevent dilution resulting from stock splits, stock dividends, or
               similar transactions. Such Registration Statement shall initially
               register for resale 3,327,443 shares of Common Stock, all of
               which is subject to adjustment as provided in Section 3(b), and
               such registered shares of Common Stock shall be allocated among
               the Investors pro rata based on the total number of Registrable
               Securities issued or issuable as of each date that a Registration
               Statement, as amended, relating to the sale of the Registrable
               Securities is declared effective by the SEC." In addition the
               fourth sentence of Section 3(b) of the Registration Rights
               Agreement will automatically be deleted and replaced with the
               following sentence: "For purposes of the foregoing provision, the
               number of shares available under a Registration Statement shall
               be deemed "insufficient to cover all of the Registrable
               Securities" if at any time the number of Registrable Securities
               issued or issuable upon conversion of the Series 1 Bridge Notes
               together with the number of Registrable Securities issued or
               issuable upon exercise of the Purchaser Warrants and the
               Repricing Warrants is greater than 3,327,443."

          3.   The first sentence of the Background section of each of the Note
               Purchase Agreement, the First Amendment and the Second Amendment
               will automatically be amended to insert the following phrase
               immediately after the phrase "Series 1 Secured Convertible Bridge
               Financing Notes": (as the same may be amended, renewed, extended,
               replaced, substituted, exchanged, supplemented or otherwise
               modified from time to time, the "Bridge Notes")" and to delete
               the defined term (the "Bridge Notes").

          4.   It is hereby agreed that: (a) the term Bridge Note issued on the
               First Closing Date in the Purchase Agreement will automatically
               be deemed to refer to the New Bridge Note bearing number S1BFN7;
               (b) the term Second Closing Bridge Notes in the Purchase
               Agreement will automatically be deemed to refer to the New Bridge
               Notes bearing numbers S1BFN8, S1BFN9 and S1BFN 10; and (c) the
               term Third Closing Bridge Notes in the Purchase Agreement will be
               automatically deemed to refer to the New

                                      -4-
<PAGE>

               Bridge Notes bearing numbers S1BFN 11 and S1BFN12, and each of
               the New Bridge Notes so substituted for an Old Bridge Note shall
               be entitled to, and have the benefit of, the security interest in
               the Collateral provided to the corresponding Old Bridge Note,
               provided in the Purchase Agreement.

          5.   The first sentence of Section 2.1 of the Note Purchase Agreement
               will automatically be amended to delete the parenthetical and to
               insert the following phrase after the phrase "under the Bridge
               Notes": "and such other obligations of the Company, the
               instruments evidencing which state that they are secured by the
               security interest and lien granted hereby (such obligations are
               sometimes hereinafter referred to as the "Obligations")". The
               first sentences of Section 2.1 of the First Amendment and Section
               1.1 of the Second Amendment will automatically be amended to
               insert the following phrase after the phrases "Second Closing
               Bridge Notes" and "Third Closing Bridge Notes", in the First
               Amendment and the Second Amendment, respectively: "and such other
               obligations of the Company, the instruments evidencing which
               state that they are secured by the security interest and lien
               granted hereby".

          6.   The Company shall take all reasonable actions the Purchasers and
               the Placement Agent may request, including, without limitation,
               the execution of any necessary documents, to effectuate the
               agreement of the Company, the Purchasers, and the Placement Agent
               to continue the security interests originally granted securing
               the Old Bridge Notes and now securing the New Bridge Notes, and
               with respect to providing a security interest to secure the
               Placement Bridge Note.

          7.   The Purchasers will be deemed to acknowledge that no Event of
               Default has occurred under the Old Bridge Notes.

     g) If the Escrow Termination Date occurs prior to the Shaar Closing, the
Old Documents shall be released from escrow and delivered to the Purchasers by
overnight or next-day courier to BLG, as attorneys and agent for the Purchasers
and the Placement Agent, and the New Documents shall be released from escrow and
delivered to the Company as promptly as practicable thereafter. Delivery of the
Old Documents to BLG by the Escrow Agent shall be deemed delivery to the
Purchasers and the Placement Agent for all purposes under this Agreement. At
such time the New Documents will automatically become null and void without
further force or effect, and the Old Documents will continue to remain in full
force and effect. Furthermore, all other agreements contained herein including,
without limitation, the agreement not to exercise the Warrants, the Placement
Agent Warrants, the New Placement Agent Warrant and the New Warrants, shall be
null and void and of no further force or effect.

                                      -5-
<PAGE>

     (h) Each Purchaser and the Placement Agent hereby represents and warrants
that it is an "accredited investor" as that term is defined in Rule 501(a) of
Regulation D promulgated under the Securities Act of 1933, as amended.

     (i) All notices and other communications hereunder shall be in writing and
shall be delivered as provided for in the Purchase Agreement, as follows:

          If to a Purchaser to the address as set forth below such Purchaser's
     name above;

          If to the Company to:

               Compositech Ltd.
               120 Ricefield Lane
               Hauppauge, New York 11788
               Attention: Samuel S. Gross
               Facsimile Number: (516) 436-5203

          With a copy to:

               Patterson, Belknap, Webb & Tyler LLP
               1133 Avenue of the Americas
               New York, New York 10036
               Attention: Edward F. Cox
               Facsimile Number (212) 336-2222

          If to the Escrow Agent to:

               Patterson, Belknap, Webb & Tyler LLP
               1133 Avenue of the Americas
               New York, NY  10036
               Attention: Edward F. Cox
               Facsimile: (212) 336-2222

     (j) This Agreement sets forth all the obligations of the Escrow Agent with
respect to any and all matters pertinent to the escrow contemplated hereunder
and no additional obligations of the Escrow Agent shall be implied from the
terms hereof. The Escrow Agent shall incur no liability, and the parties agree
to indemnify and hold harmless the Escrow Agent, in connection with the
discharge of its obligations hereunder or otherwise in connection therewith,
except such liability as may arise from the gross negligence or wilful
misconduct of the Escrow Agent.

     (k) This Agreement shall be governed by the laws of the State of New York
without regard to the conflicts of law doctrine of such state.

                                      -6-
<PAGE>

     (l) This Agreement may be executed in counterparts, each of which shall
constitute an integral original part of one and the same original instrument.

     If the foregoing correctly sets forth the understanding among us, please
indicate your agreement and acceptance by signing below.

                                           Sincerely,

                                           COMPOSITECH LTD.

                                           By: _________________________________
                                                    Samuel Gross
                                                    Executive Vice President

Acknowledged, agreed and accepted by the undersigned:

SOVCAP EQUITY PARTNERS LTD.

By:___________________________
      Authorized Signatory

ARAB COMMERCE BANK, LTD.

By:___________________________
      Authorized Signatory

CORRELLUS INTERNATIONAL LTD.

By:___________________________
      Authorized Signatory

                                      -7-
<PAGE>

BRONIA GMBH

By:___________________________
      Authorized Signatory

 SOVEREIGN CAPITAL ADVISORS, LLC

By:___________________________
      Authorized Signatory

PATTERSON, BELKNAP, WEBB & TYLER LLP

By: __________________________
         Partner

                                      -8-
<PAGE>

                                    EXHIBIT A

          SovCap                              $500,000.00  ("S1BFN 1")
          SovCap                              $130,000.00  ("S1BFN 2")
          Correllus International Ltd.        $200,000.00  ("S1BFN 3")
          Arab Commerce Bank Ltd.             $100,000.00  ("S1BFN 4")
          Bronia GmbH                         $250,000.00  ("S1BFN 5")
          SovCap                              $200,000.00  ("S1BFN 6")

                                      -9-EXHIBIT 10.58

     THIS BRIDGE NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933,
     AS AMENDED, AND MAY NOT BE SOLD, TRANSFERRED, PLEDGED, OR HYPOTHECATED
     UNLESS REGISTERED UNDER SUCH ACT OR UNLESS THE COMPANY RECEIVES AN OPINION
     OF COUNSEL SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT
     REQUIRED.

                                COMPOSITECH LTD.
                         SERIES 1 BRIDGE FINANCING NOTE

No. S1BFN-7                  $739,200.00                   October 4, 1999

     COMPOSITECH LTD., a Delaware corporation (such corporation, or any
successor permitted hereunder, the "Company"), for value received, hereby
promises to pay to SOVCAP EQUITY PARTNERS, LTD., or any subsequent holder hereof
(such holders, assignees, or any registered assignees, the "Holders"), the
principal sum of SEVEN HUNDRED THIRTY-NINE THOUSAND TWO HUNDRED AND NO/100
DOLLARS (US $739,200.00), and to pay interest on such principal sum, at the rate
of eight percent (8%) per annum (the "Note Rate") from the Original Issue Date
(as defined below) until March 31, 2000 (the "Maturity Date") and at the rate of
eleven percent (11%) per annum (the "Default Rate") after the Maturity Date
until payment of all principal, premium, and accrued and unpaid interest has
been paid in full. Interest shall be payable on the Maturity Date. All such
interest shall be computed on the basis of the actual number of days elapsed
during any interest period in a year of 360 days. The date on which this Series
1 Bridge Note shall have first been issued is referred to herein as the
"Original Issue Date."

     Section 1. Description. This Bridge Note is one of a series of Series 1
Bridge Financing Notes that have been authorized by the Company (the "Series 1
Bridge Notes") and are alike except for principal amount and issue date, and are
in registered form. This Series 1 Bridge Note replaces the Bridge Note
denominated "S1BFN-1" bearing the original issue date March 16, 1999, made by
the Company in favor of SovCap Equity Partners, Ltd. in connection with the
First Closing and tendered to and cancelled by the Company on the date hereof as
part of the making and issuance of this Series 1 Bridge Note. This Series 1
Bridge Note is convertible, into shares of the Company's Common Stock, $.01 par
value (the "Common Stock"), as provided herein, and, effective upon any such
conversion, the Common Stock so issued shall be subject to all terms and
conditions and shall enjoy all rights, privileges, and preferences applicable to
such Common Stock under the Company's Certificate of Incorporation (the
"Certificate of Incorporation"). The Common Stock issuable upon conversion of
this Series 1 Bridge Note (the "Conversion Shares") are entitled to registration
rights pursuant to a Registration Rights Agreement between Holder, the Company,
and certain other signatures thereto dated March 16, 1999, as amended (the
"Registration Rights Agreement"). This Series 1 Bridge Note is secured by
certain specified equipment of the Company having a value of approximately 130%
of the principal amount of this Series 1 Bridge Note pursuant to the terms of a
Series 1 Bridge Note Purchase and Security Agreement dated March 16, 1999, as
amended (the "Purchase Agreement"), and is otherwise entitled to all of the
rights and benefits thereunder.

     Section 2. Office for Registration and Conversion. The Company shall
maintain an office where this Series 1 Bridge Note shall be surrendered or
presented for registration of transfers or exchanges and conversions. This
office will initially be located at the offices of the Company at 120 Ricefield
Lane, Hauppauge, New York 11788. The Company shall keep a register of the Series
1 Bridge Notes and of their transfer and exchange, including the names and
addresses of Holders of the Series 1 Bridge Notes. Holder shall give the Company
notice of any change in Holder's address to the office indicated in this Section
2. Upon two (2) business days written request, the Company shall permit Holder
or its duly authorized representatives to inspect such register. Upon written
notice to Holder, the Company may change the address of the office to be
maintained by the Company pursuant to this Section 2 or appoint one

                                      -1-
<PAGE>

or more co-registrars, stock registrars, paying agents, or conversion agents to
assist the Company in performing its functions under the Series 1 Bridge Notes.

     Section 3. Redemption.

          (a) Mandatory Redemption. If this Series 1 Bridge Note is outstanding
     on the Maturity Date, this Series 1 Bridge Note shall be due and payable as
     follows:

               (i) if on the Maturity Date a Registration Statement is effective
          with respect to the Conversion Shares, the Company shall give written
          notice to Holder of its intent to redeem the then outstanding
          principal amount of this Series 1 Bridge Note, which notice shall
          state the election of the Company to pay the redemption price in cash
          or by conversion of this Series 1 Bridge Note into Common Stock, in
          the manner contemplated by Section 3(c) hereof. Regardless of the
          manner in which paid, the redemption price (the "Maturity Date
          Redemption Price") shall be equal to 117.5% of the then outstanding
          principal amount of this Series 1 Bridge Note plus accrued and unpaid
          interest thereon at the Note Rate through and including the Maturity
          Date and at the Default Rate after the Maturity Date through and
          including the date the payment is disbursed (whether by issuance of
          Conversion Shares or a payment in cash).

               (ii) if on the Maturity Date a Registration Statement is not
          effective with respect to the Conversion Shares, Holder may, in
          addition to all other rights and remedies of Holder hereunder and
          under the Purchase Agreement, elect to make written demand to the
          Company to redeem, all or part of the then outstanding principal under
          this Series 1 Bridge Note. Such demand shall specify Holder's election
          to accept payment of the redemption price in cash or by conversion of
          this Series 1 Bridge Note into Common Stock, in the manner
          contemplated by Section 3(c) hereof. The Company shall have two (2)
          Business Days after its receipt of such demand to confirm its
          intention to redeem this Series 1 Bridge Note by tendering to Holder
          either (A) cash or (B) Conversion Shares (as specified in Holder's
          demand), in the manner contemplated by Section 3(c) hereof. In either
          case the redemption price shall be equal to the Maturity Date
          Redemption Price.

               (iii) The date of any redemption under either subparagraph (i) or
          (ii) above shall be referred to as a "Redemption Date."

          (b) Voluntary Redemption. At any time from and after the Original
     Issue Date up to but not including the Maturity Date, the Company may, at
     its option, call and redeem this Series 1 Bridge Note, at the redemption
     price set forth in subparagraph (i), below, plus accrued and unpaid
     interest on such redeemed amount through and including the Voluntary
     Redemption Date, as such term is defined below (such redemption being the
     "Voluntary Redemption"), under and in accordance with the following terms
     and procedures:

               (i) The Company at its option prior to the Maturity Date may
          redeem this Series 1 Bridge Note at the Redemption Price set forth
          below plus all accrued and unpaid interest on the principal amount
          through and including the Voluntary Redemption Date (the "Voluntary
          Redemption Price") as of a Voluntary Redemption Date:

                                      -2-
<PAGE>

Redemption Date                                                 Redemption Price
---------------                                                 ----------------

Original Issue Date through and including the 90th day after the       110%
Original Issue Date

91st day after the Original Issue Date through and including the     112 1/2%
120th day after the Original Issue Date

121st day after the Original Issue Date through and including the      115%
150th day after the Original Issue Date

151st day after the Original Issue Date through and including the    117 1/2%
date of redemption or conversion

               (ii) At least ten (10) days before a Voluntary Redemption, the
          Company shall mail a notice of redemption to Holder, stating (A) the
          redemption date, which shall be a business day in New York, New York
          (the "Voluntary Redemption Date"), (B) the aggregate principal amount
          of this Series 1 Bridge Note to be redeemed, (C) the Voluntary
          Redemption Price, and (D) the name and address of the Person to whom
          this Series 1 Bridge Note must be presented to receive payment if
          required pursuant to paragraph (iv) below. Once notice of redemption
          is mailed and the Company shall have complied with paragraph (iii)
          below, the Voluntary Redemption Price shall become due and payable on
          the Voluntary Redemption Date.

               (iii) On or before the third (3rd) day prior to the Voluntary
          Redemption Date, the Company shall deposit into a bank trust account
          for the benefit of the Holder of this Series 1 Bridge Note money
          sufficient to pay the Redemption Price and all accrued and unpaid
          interest.

               (iv) The Company may, at its option, require as a condition to
          the receipt of a payment pursuant to this Section 3(b) that Holder
          present the Series 1 Bridge Notes to the Person specified in paragraph
          (ii) above for surrender.

               (v) No Voluntary Redemption of this Series 1 Bridge Note can be
          effected after the 179th day after the Original Issue Date.

          (c) Conversion into Common Stock in Lieu of Payments.

               (i) In lieu of payment of cash to Holder pursuant to Section
          3(a)(i) hereof and Section 3(b) hereof, the Company may, elect to pay
          all or part of the Maturity Date Redemption Price or the Voluntary
          Redemption Price in Conversion Shares, under the terms of Section 3(d)
          hereof.

               (ii) In lieu of cash, pursuant to Section 3(a)(ii) hereof, Holder
          may require the Company to pay all or part of the Maturity Date
          Redemption Price in Conversion Shares, under the terms of Section 3(d)
          hereof.

     The Repricing Warrant shall apply to each share of Common Stock received by
     Holder pursuant to this Section 3(c).

          (d) The number of shares of Common Stock issuable in payment of the
     Mandatory Redemption Price or the Voluntary Redemption Price is equal to
     the quotient of the Mandatory

                                      -3-
<PAGE>

     Redemption Price or the Voluntary Redemption Price (as the case may be)
     divided by $1.1375 (the "Conversion Price"). Fractional shares will not be
     issued. In lieu of any fraction of a share, the Company shall deliver its
     check for the dollar amount of the less-than full share remainder.

     Section 4. Method of Payment.

          (a) Interest accruing through and including the Maturity Date shall be
     computed at the Note Rate. Interest accruing after the Maturity date shall
     be computed at the Default Rate. Accrued and unpaid interest shall be due
     and payable at the time the principal and premium of this Series 1 Bridge
     Note is paid. All such interest shall be computed on the basis of the
     actual number of days elapsed during any interest period in a year of 360
     days. Interest shall begin to accrue on the Original Issue Date.

          (b) The Company shall pay interest and principal on this Series 1
     Bridge Note (except defaulted interest) to the Person who is the registered
     Holder of this Series 1 Bridge Note on the day on which the interest or
     principal payment is due. If the Company defaults in a payment of interest
     on this Series 1 Bridge Note, it may pay the defaulted interest, plus any
     interest on the defaulted interest if permitted provided by Section 4(d)
     below, to the Person who is the registered Holder of this Series 1 Bridge
     Note on the date such payment is made.

          (c) The Company shall pay interest by check payable in money of the
     United States of America that at the time of payment is legal tender for
     public and private debts. Payments of interest shall be mailed to Holder's
     address shown in the register maintained pursuant to Section 2; provided
     however, that with respect to the final payment of principal and accrued
     and unpaid interest necessary to pay this Series 1 Bridge Note in full, to
     receive such payment Holder must surrender this Series 1 Bridge Note for
     cancellation to the Company or to a paying agent appointed by the Company.
     Principal and interest shall be considered paid on the date due, and no
     interest shall accrue thereafter, if there is on deposit on that date, in a
     bank trust account for the benefit of Holder of this Series 1 Bridge Note,
     money sufficient to pay the Redemption Price and all accrued and unpaid
     interest due under this Series 1 Bridge Note.

     Section 5. Conversion Price and Adjustments.

          (a) At anytime after the Maturity Date, Holder may convert all or any
     portion of the Redemption Price and accrued and unpaid interest due on this
     Series 1 Bridge Note into shares of Common Stock.

          (b) If Holder elects to convert less than the full Redemption Price of
     this Series 1 Bridge Note, such conversion shall be permitted only in one
     hundred (100)-share increments unless the Company has given its
     contemporaneous consent to conversion of an odd lot. The provisions hereof
     that apply to conversion of the entire Redemption Price of this Series 1
     Bridge Note shall also apply to conversion of a portion of the Redemption
     Price. Upon surrender of the Series 1 Bridge Note for conversion in part,
     the Company shall issue new Series 1 Bridge Notes in substantially the same
     form as this Series 1 Bridge Note, except that the principal amount shall
     be reduced by the principal amount so converted (exclusive of the
     redemption premium).

          (c) The number of shares of Common Stock issuable upon conversion of
     this Series 1 Bridge Note is equal to the quotient of the Redemption Price
     of this Series 1 Bridge Note being converted divided by Conversion Price.
     Fractional shares will not be issued. In lieu of any fraction of a share,
     the Company shall deliver its check for the dollar amount of the less than
     full share remainder. Accrued and unpaid interest shall be included in
     computing the number of

                                      -4-
<PAGE>

     Conversion Shares issuable upon conversion of this Series 1 Bridge Note.
     Interest shall cease to accrue on that portion of the Redemption Price
     converted from and after the Conversion Date.

     Section 6. Procedures for Conversion, and Issuance of Conversion Shares.

          (a) Holders' Delivery Requirements. To convert this Series 1 Bridge
     Note into Common Stock, (the "Conversion Date"), the Holder hereof shall
     (A) deliver or transmit by facsimile, for receipt on or prior to 11:59
     P.M., Eastern Time, on such date, a copy of a fully executed notice of
     conversion in the form attached hereto as Exhibit A (the "Conversion
     Notice") to the Company or its designated Transfer Agent, and (B) surrender
     to a common carrier for delivery to the Company or the Transfer Agent as
     soon as practicable following such date, the original Series 1 Bridge Note
     being converted (or an indemnification undertaking with respect to such
     shares in the case of the loss, theft, or destruction of the Series 1
     Bridge Note) and the originally executed Conversion Notice. The date the
     Company receives the Conversion Note and this Series 1 Bridge Note is
     hereinafter the "Conversion Date."

          (b) Company's Response. Upon receipt by the Company of a facsimile
     copy of a Conversion Notice, the Company shall immediately send, via
     Facsimile, a confirmation of receipt of such Conversion Notice to Holder.
     Upon receipt by the Company or the Transfer Agent of the Series 1 Bridge
     Note to be converted pursuant to a Conversion Notice, together with the
     originally executed Conversion Notice, the Company or the Transfer Agent
     (as applicable) shall, within five (5) business days following the date of
     receipt, (A) issue and surrender to a common carrier for overnight delivery
     to the address as specified in the Conversion Notice, a certificate,
     registered in the name of Holder or its designee, for the number of shares
     of Common Stock to which Holder shall be entitled or (B) credit the
     aggregate number of shares of Common Stock to which such Holder shall be
     entitled to the Holder's or its designee's balance account at The
     Depository Trust Company.

          (c) Record Holder. The Person or persons entitled to receive the
     shares of Common Stock issuable upon a conversion of this Series 1 Bridge
     Note shall be treated for all purposes as the "Record Holder" or Holder of
     such shares of Common Stock on the Conversion Date.

          (d) Company's Failure to Timely Convert. If the Company shall fail to
     issue to Holder within five (5) business days following the date of receipt
     by the Company or the Transfer Agent of this Series 1 Bridge Note to be
     converted pursuant to a Conversion Notice, a certificate for the number of
     shares of Common Stock to which each Holder is entitled upon Holder's
     conversion of this Series 1 Bridge Note, in addition to all other available
     remedies which such Holder may pursue hereunder and under the Purchase
     Agreement between the Company and the initial Holder of this Series 1
     Bridge Note (including indemnification pursuant to Section 7.18 thereof),
     the Company shall pay additional damages to Holder on each day after the
     fifth (5th) business day following the date of receipt by the Company or
     the Transfer Agent an amount equal to 1.0% of the product of (A) the number
     of shares of Common Stock not issued to Holder and to which Holder is
     entitled multiplied by (B) the Closing Bid Price of the Common Stock on the
     business day following the date of receipt by the Company or the Transfer
     Agent of the Conversion Notice. The foregoing notwithstanding, Holder at
     its option may withdraw a Conversion Notice, and remain a Holder of this
     Series 1 Bridge Note, if Holder has otherwise complied with this Section 6.

          (e) If any adjustment to the Conversion Price to be made pursuant to
     Section 7 becomes effective immediately after a record date for an event as
     therein described, and conversion occurs prior to such event but after the
     record date, the Company may defer issuing, delivering, or paying to Holder
     any additional shares of Common Stock or check for any cash remainder
     required

                                      -5-
<PAGE>

     by reason of such adjustment until the occurrence of such event, provided
     that the Company delivers to Holder a due bill or other appropriate
     instrument evidencing the Holders' right to receive such additional shares
     or check upon the occurrence of the event giving rise to the adjustment.

          (f) Until such time as this Series 1 Bridge Note has been fully
     redeemed, the Company shall reserve out of its authorized but unissued
     Common Stock enough shares of Common Stock to permit the conversion of the
     entire Redemption Price and all accrued and unpaid interest due on this
     Series 1 Bridge Note at any time. All shares of Common Stock issued upon
     conversion of this Series 1 Bridge Note shall be fully paid and
     nonassessable. The Company covenants that if any shares of Common Stock,
     required to be reserved for purposes of conversion of this Series 1 Bridge
     Note hereunder, require registration with or approval of any governmental
     authority under any federal or state law or listing upon any national
     securities exchange before such shares may be issued upon conversion, the
     Company shall in good faith, as expeditiously as possible, endeavor to
     cause such shares to be duly registered, approved or listed, as the case
     may be.

     Section 7. Adjustments to Conversion Price. The Conversion Price shall be
subject to adjustment from time to time as follows:

          (a) If the Company at any time subdivides (by any stock split, stock
     dividend, recapitalization, or otherwise) one or more classes of its
     outstanding shares of Common Stock into a greater number of shares, the
     Conversion Price in effect immediately prior to such subdivision will be
     proportionately reduced. If the Company at any time combines (by
     combination, reverse stock split, or otherwise) one or more classes of its
     outstanding shares of Common Stock into a smaller number of shares, the
     Conversion Price in effect immediately prior to such combination will be
     proportionately increased.

          (b) Prior to the consummation of any Organic Change (as defined
     below), the Company will make appropriate provision (in form and substance
     satisfactory to the Holder to insure that Holder will thereafter have the
     right to acquire and receive in lieu of, or in addition to, (as the case
     may be) the shares of Common Stock immediately theretofore acquirable and
     receivable upon the conversion of this Holder's Series 1 Bridge Note, such
     shares of stock, securities, or assets as may be issued or payable with
     respect to, or in exchange for, the number of shares of Common Stock
     immediately theretofore acquirable and receivable upon the conversion of
     this Series 1 Bridge Note had such Organic Change not taken place. In any
     such case, the Company will make appropriate provision (in form and
     substance satisfactory to Holder with respect to such Holder's rights and
     interests to insure that the provisions of this Section 7b) and Sections
     7(c) and 7(d) below will thereafter be applicable. The Company will not
     effect any such consolidation, merger, or sale, unless prior to the
     consummation thereof the successor entity (if other than the Company)
     resulting from consolidation or merger or the entity purchasing such assets
     assumes, by written instrument (in form and substance satisfactory to
     Holder, the obligation to deliver to Holder such shares of stock,
     securities, or assets as, in accordance with the foregoing provisions, that
     Holder may be entitled to acquire. For purposes of this Agreement, "Organic
     Change" means any recapitalization, reorganization, reclassification,
     consolidation, merger, or sale of all or substantially all of the Company's
     assets to another Person (as defined below), or other similar transaction
     which is effected in such a way that holders of Common Stock are entitled
     to receive (either directly or upon subsequent liquidation) stock,
     securities, or assets with respect to or in exchange for Common Stock; and
     "Person" means an individual, a limited liability company, a partnership, a
     joint venture, a corporation, a trust, an unincorporated organization, and
     a government or any department or agency thereof.

                                      -6-
<PAGE>

     Section 8. Notices. The Company shall give the following notices at the
times specified:

          (a) Immediately upon any adjustment of the Conversion Price, the
     Company will give written notice thereof to Holder, setting forth in
     reasonable detail and certifying the calculation of such adjustment.

          (b) The Company will give written notice to Holder, at least twenty
     (20) days prior to the date on which the Company closes its books or takes
     a record (i) with respect to any dividend or distribution upon the Common
     Stock, (ii) with respect to any pro rata subscription offer to Holder of
     Common Stock, or (iii) for determining rights to vote with respect to any
     Organic Change, dissolution, or liquidation.

          (c) The Company will also give written notice to Holder at least
     twenty (20) days prior to the date on which any Organic Change, Major
     Transaction (as defined below), dissolution, or liquidation will take
     place.

     Section 9. Successors to the Company. The Company shall not consolidate or
merge with or into, or sell all or substantially all of its assets to, any
Person unless: (i) the Person is a corporation; (ii) such Person executes, and
mails to Holder a copy of, an instrument by which such Person or an affiliate
assumes the due and punctual payment of the principal of and interest on this
Series 1 Bridge Note and the performance and observance of all the obligations
of the Company under this Series1 Bridge Note; and (iii) immediately after
giving effect to the transaction, no Event of Default or event which after
notice or lapse of time or both would become an Event of Default shall have
occurred. Upon compliance with this Section 9, Successor Corporation shall
succeed to and be substituted for the Company under this Series 1 Bridge Note
with the same effect as if the Successor Corporation had been named as the
Company herein. Nothing in this Series 1 Bridge Note shall prevent any
consolidation or merger in which the Company is the surviving corporation, or
any acquisition by the Company by purchase or otherwise of all or any part of
the assets of any other Person, and no such consolidation, merger, or
acquisition shall require compliance with this Section 9.

     Section 10. Events of Default and Remedies.

          (a) As used herein, an "Event of Default" occurs if:

               (i) The Company defaults in the payment of principal and/or
          interest when the same becomes due and payable.

               (ii) the Company fails to comply with any other provision
          contained in this Series 1 Bridge Note, the Purchase Agreement, the
          Warrant, the Repricing Warrant, or the Registration Rights Agreement,
          and such failure is not cured within five (5) days after the Company
          receives written demand from Holder to remedy the same;

               (iii) the Company defaults in any payment of principal of or
          interest on any Debt (excluding trade payables) in excess of $100,000
          beyond any period of grace provided with respect thereto and the
          effect of such failure is to cause the holder of such Debt to
          accelerate the Debt such that such Debt becomes due prior to its
          stated maturity;

               (iv) any representation or warranty made in writing by or on
          behalf of (i) the Company in the Purchase Agreement or in any writing
          furnished in connection with or pursuant to the Purchase Agreement or
          in connection with the transactions contemplated by this Agreement, or
          (ii) the Company in the Registration Rights Agreement, or (iii) the

                                      -7-
<PAGE>

          Company in the Escrow Agreement, shall be false in any material
          respect on the date as of which made;

               (v) the Company makes an assignment for the benefit of creditors
          or is generally not paying its debts as such debts become due;

               (vi) any order or decree for relief in respect of the Company is
          entered under any bankruptcy, reorganization, compromise, arrangement,
          insolvency, readjustment of debt, dissolution, or liquidation or
          similar law, whether now or hereafter in effect (herein called the
          "Bankruptcy Law"), of any jurisdiction;

               (vii) the Company petitions or applies to any tribunal for, or
          consents to, the appointment of, or taking possession by, a trustee,
          receiver, custodian, liquidation, or similar official of the Company,
          or of any substantial part of the assets of the Company, or commences
          a voluntary case under the Bankruptcy Law of the United States or any
          proceedings relating to the Company under the Bankruptcy Law of any
          other jurisdiction;

               (viii) any petition or application described in Section 10(a)(vi)
          above is filed, or any such proceedings are commenced, against the
          Company and the Company by any act indicates its approval thereof,
          consent thereto or acquiescence therein, or an order, judgment or
          decree is entered appointing any such trustee, receiver, custodian,
          liquidator, or similar official, or approving the petition in any such
          proceedings, and such order, judgment, or decree remains unstayed and
          in effect for more than sixty (60) days;

               (ix) any order, judgment, or decree is entered in any proceedings
          against the Company decreeing the dissolution of the Company and such
          order, judgment, or decree remains unstayed and in effect for more
          than sixty (60) days; or

               (x) a final judgment (not fully covered by insurance) in an
          amount in excess of $100,000 is rendered against the Company and,
          within ten (10) business days after entry thereof, such judgment is
          not discharged or execution thereof stayed pending appeal, or within
          ten (10) days after the expiration of any such stay, such judgment is
          not discharged.

          (b) Upon the occurrence of an Event of Default described in subsection
     (vi), (vii), or (viii) of Section 10(a), the principal of and accrued
     interest on this Series 1 Bridge Note shall automatically become
     immediately due and payable, without presentment, demand, protest or other
     requirements of any kind, all of which are hereby expressly waived by the
     Company. If any other Event of Default exists, Holder may, in addition to
     the exercise of any right, power, or remedy permitted to Holder by law,
     declare (by written notice or notices to the Company) the entire principal
     of and all interest accrued on this Series 1 Bridge Note to be due and
     payable, and this Series 1 Bridge Note shall thereupon become immediately
     due and payable, without presentment, demand, protest, or other notice of
     any kind, all of which are hereby expressly waived by the Company. Upon
     such declaration, the Company will immediately pay to Holder of this Series
     1 Bridge Note the then outstanding principal of and accrued and unpaid
     interest on the Series 1 Bridge Notes. If at any time after acceleration of
     the maturity of the Series 1 Bridge Notes, the Company shall pay all
     arrears of interest and all payments on account of principal which shall
     have become due other than by acceleration (with interest on principal and,
     to the extent permitted by law, on overdue interest, at the rate specified
     in the Series 1 Bridge Notes) and all Events of Default (other than
     nonpayment of principal of or interest on this Series 1 Bridge Note due and
     payable solely by virtue of acceleration) shall be remedied or waived by
     Holder by written notice to the Company may rescind and annul the
     acceleration and its consequences, but such action shall not affect any
     subsequent Event of Default or impair any right consequent thereon.

                                      -8-
<PAGE>

          (c) A delay or omission by the Holder of this Series 1 Bridge Note in
     exercising any right or remedy arising upon an Event of Default shall not
     impair such right or remedy or constitute a waiver of or an acquiescence in
     the Event of Default.

          (d) If any Event of Default shall occur and be continuing, the Holder
     of this Series 1 Bridge Note may proceed to protect and enforce their
     rights under this Agreement and this Series 1 Bridge Note by exercising
     such remedies as are available to such Holder either by suit in equity or
     by action at law, or both, whether for specific performance of any covenant
     or other agreement contained in this Agreement or in aid of the exercise of
     any power granted in this Agreement. No remedy conferred in this Agreement
     upon Holder is intended to be exclusive of any other remedy, and each and
     every such remedy shall be cumulative and shall be in addition to every
     other remedy conferred herein or now or hereafter existing at law or in
     equity or by statute or otherwise.

     Section 11. Exchange, Transfer, Replacement or Cancellation.

          (a) This Series 1 Bridge Note may be exchanged for an equal principal
     amount of Series 1 Bridge Notes in denominations of US$25,000.00 or in
     greater multiples of US$5,000.00 upon written request to the Company
     accompanied by surrender of this Series 1 Bridge Note to the Company or to
     an agent designated for that purpose. Any Series 1 Bridge Notes issued in
     exchange for this Series 1 Bridge Note shall be one of this Series 1 Bridge
     Note referred to in Section 1, and shall be entitled to all the rights
     thereof.

          (b) The Series 1 Bridge Notes may not be transferred except upon the
     conditions specified in this Section 11(b), which conditions are intended
     to insure compliance with the provisions of the Securities Act of 1933, as
     amended (the "Securities Act"). Prior to any proposed transfer of this
     Series 1 Bridge Note the Holder hereof shall give written notice to the
     Company of the proposed disposition and shall furnish to the Company a
     statement of the circumstances surrounding the proposed disposition and an
     opinion of counsel reasonably satisfactory to the Company to the effect
     that (i) such disposition will not require registration of such securities
     under the Securities Act or qualification of such securities under the blue
     sky or state securities laws of any state in which such qualification would
     be required, or (ii) appropriate action necessary for compliance with the
     Securities Act or the blue sky or securities laws of such states has been
     taken. The Holder hereof shall cause any proposed transferee of such
     securities to agree to take and hold such securities subject to the
     provisions and upon the conditions specified in this Section 11. The
     Company or any co-registrar appointed by the Company may require the Holder
     to furnish appropriate endorsements and/or transfer documents, including
     information regarding any proposed transferee's name, address and social
     security or taxpayer identification number, and to pay any issue or
     transfer taxes or fees as may be required by law. The registered Holder of
     this Series 1 Bridge Note may be treated as its owner for all purposes.

          (c) If Holder claims this Series 1 Bridge Note has been lost,
     destroyed, or wrongfully taken, the Company shall issue a replacement
     Series 1 Bridge Note upon (i) receipt of any indemnity bond or other
     assurance requested by the Company to protect it from any loss which it may
     suffer by reason of such replacement or subsequent presentment of the
     original Series 1 Bridge Note, and (ii) payment of any expenses reasonably
     incurred by the Company in replacing the Series 1 Bridge Note.

     Section 12. Amendments and Waivers. This Series 1 Bridge Note may, with the
consent of the Company and the Holder be amended or any provision thereof
waived.

     Section 13. Notice. Any notice or communication hereunder shall be in
writing and delivered by first-class mail, return receipt requested, to each
Holder at its address shown in the register kept by the

                                      -9-
<PAGE>

Company or any co-registrar appointed by the Company and to the Company at the
address of its office to be maintained pursuant to Section 2. Failure to mail,
or any defect in, a notice or communication to any other Holder of this Series 1
Bridge Note shall not affect its sufficiency with respect to the other Holders.
If a notice or communication is mailed to Holder in the manner provided above
within the time prescribed, it shall be deemed duly given and effective on the
tenth (10th) business day after it was deposited in the mail, whether or not
Holder actually receives it.

     Section 14. No Recourse Against Others. A director, officer, employee, or
shareholder, as such, of the Company shall not have any liability for any
obligations of the Company under this Series 1 Bridge Note or for any claim
based on, in respect of or by reason of such obligations or their creation. The
Holder of this Series 1 Bridge Note by accepting this Series 1 Bridge Note
waives and releases all such liability and such waiver and release are part of
the consideration for the issue of the Series 1 Bridge Note.

     Section 15. Governing Law. The Series 1 Bridge Notes shall be governed by
and construed in accordance with the laws of the State of New York, irrespective
of the choice of law provisions thereof. The parties agree that any appropriate
state court located in New Castle County, Delaware, or any Federal Court located
in Wilmington, Delaware, including without limitation to the United States
District Court of Delaware, shall have exclusive jurisdiction of any case or
controversy arising under or in connection with this Agreement and shall be a
proper forum in which to adjudicate such case or controversy. The parties
consent to the jurisdiction of such courts.

     IN WITNESS WHEREOF, the parties have caused this Series 1 Bridge Financing
Note to be duly executed as of day and year first above written.

                       [Signatures on the following page]

                                      -10-
<PAGE>

                             COMPANY SIGNATURE PAGE
                                       TO
                         SERIES 1 BRIDGE FINANCING NOTE

                                    COMPOSITECH, LTD.

                                    By:_________________________________________
                                       Samuel S. Gross, Chief Financial Officer

ATTEST:

By:________________________________
    Assistant Secretary

                                                    [Corporate Seal]

                                      -11-

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