Document:

AMENDED, RESTATED AND RENEWED PROMISSORY NOTE

$332,402.00                                                As of January 4, 2000

FOR VALUE RECEIVED, the undersigned, and if more than one, each of them jointly
and severally ("Borrower") promises to pay to the order of THE ESTATE OF SIDNEY
DWORKIN (together with any subsequent holder of this Note, including all
beneficiaries hereof, hereinafter "Creditor") at c/o Quartermane Capital Ltd.,
39680 Bainbridge Road, Solon, Ohio 44139, Attention: Marc Dworkin, or at such
other place as Creditor may from time to time designate, the principal sum of
THREE HUNDRED THIRTY-TWO THOUSAND FOUR HUNDRED TWO AND NO/100 DOLLARS
($332,402.00) or such sum as may be advanced and outstanding from time to time,
with interest on the unpaid principal balance at the rate and on the terms
provided in this Amended, Restated and Renewed Promissory Note (including all
renewals, extensions or modifications hereto, this "Note"). Borrower has
executed certain documents in connection with the loan evidenced by this Note
("Loan") including that certain Forbearance Agreement ("Agreement") dated
September __, 2004, made by Borrower in favor of Creditor and certain related
parties. Capitalized terms not defined herein shall have the meanings given to
them in the Agreement.

      Contemporaneously with Borrower's execution of this Note and pursuant to
the Agreement, Borrower has executed six (6) amended, restated and renewed
promissory notes evidencing and reaffirming additional obligations of Borrower
to Creditor and/or certain related parties of Creditor (collectively with the
Note, "Amended Notes"), which Amended Notes are described on the attached
Schedule A.

      This Note restates, amends, and renews that certain promissory note dated
March 1, 1999 ("Original Promissory Note"), made by Borrower payable to the
order of Creditor evidencing an original principal amount of $342,500.00, of
which, as of March 31, 2004, $332,402.00 of principal and $96,639.00 in accrued
and unpaid interest is outstanding. It is the intention of the Borrower and
Creditor that while this Note renews, amends, replaces and supersedes the
Original Promissory Note, it is not in payment or satisfaction of the Original
Promissory Note, but rather is the substitution of one evidence of debt for
another without any intent to extinguish the old. Should there be any conflict
between any of the terms of the Original Promissory Note and the terms of this
Note, the terms of this Note shall control. The Original Promissory Note is
attached hereto as Exhibit A and shall only be negotiated with this Note.

      Interest shall be charged on the outstanding principal balance from the
date hereof until the full amount of principal due hereunder has been paid at a
rate of Nine and Seventy-Five Hundredths Percent (9.75%) per annum ("Note
Rate"). Interest shall be calculated daily on the basis of the actual number of
days elapsed over a 360 day year.

      Borrower may make, at its option, payments on the indebtedness at any time
in the manner specified by Creditor, until a default shall occur hereunder or
under the Agreement or any of the other Loan Documents. In addition to the
foregoing, Borrower hereby agrees to pay to Creditor, promptly upon receipt and
in any event no later than December 10, 2004, such Creditor's Proportionate
Share of the proceeds of Borrower's sale of 2003 operating losses ("TP
Prepayment") pursuant to the State of New Jersey's Business Tax Benefit
Certificate Transfer Program, established by Title 34: 1B-7.42a, New Jersey
Statutes ("Program"). For purposes of the preceding sentence, "Proportionate
Share" means the proportion which the outstanding principal balance of this Note
bears to the total aggregate outstanding principal balances of all of the
Amended Notes, multiplied by the total proceeds of Borrower's sale of 2003
operating losses pursuant to the Program. The entire unpaid principal amount
hereof, together with accrued and unpaid interest thereon and all other amounts
payable hereunder shall, at the option of

<PAGE>

Creditor, be due and payable on April 1, 2005, unless extended or modified by
agreement of the parties. ("Maturity Date").

      The Loan may be prepaid, in whole or in part, at any time, subject to the
provisions contained herein. Any prepayment, including the TP Prepayment, shall
include accrued and unpaid interest to the date of prepayment on the principal
amount prepaid and all other sums due and payable hereunder.

      All payments described above (other than the TP Prepayment or other
prepayments) shall be received by Creditor on the first day of every month, and,
notwithstanding any other provision of this Note to the contrary, in the event
any payment (other than the TP Prepayment or other prepayments) is not received
by the 5th of each month, Creditor may immediately initiate suit on this Note,
without notice or demand.

      After the Maturity Date or due date of this Note, through acceleration or
otherwise, interest will accrue on the principal balance remaining unpaid and on
any judgment obtained on this Note at the maximum rate of interest permitted by
applicable law.

      Except as otherwise specified herein, each payment or prepayment, if any
(including any TP Prepayment), made under this Note shall be applied to pay late
charges, accrued and unpaid interest, principal, escrows (if any), and any other
fees, costs and expenses which Borrower is obligated to pay under this Note, in
such order as Creditor may elect from time to time in its sole discretion.

      Borrower, endorser, surety, guarantor, or other parties to this Note (all
of whom are hereinafter called "Obligor") jointly and severally agree as
follows:

      Obligor will be in default under this Note upon the occurrence of any
event of default under the Agreement or any document executed in connection with
this Note or the Agreement which is not cured within any applicable grace
period.

      Creditor will have all of the rights and remedies of a creditor under all
applicable law. Without limiting the generality of the foregoing, upon the
occurrence of any default under this Note, Creditor may at its option and
without notice or demand: (1) declare the entire unpaid principal and accrued
interest accelerated and due and payable at once, together with any and all
other liabilities of any Obligor or any of such liabilities selected by
Creditor; and (2) set off against this Note all money owed by Creditor in any
capacity to each or any Obligor whether or not due and also set off against all
other liabilities of each Obligor to Creditor all money owed by Creditor in any
capacity to any Obligor, and Creditor will be deemed to have exercised such
right of setoff and to have made a charge against any such money immediately
upon the occurrence of such default although made or entered on the books
subsequent thereto.

      Creditor may, at any time whether or not this Note is due, pledge or
transfer this Note, whereupon Creditor will be relieved of all duties and
responsibilities hereunder, and pledgee or transferee will for all purposes
stand in the place of Creditor hereunder and have all the rights of Creditor
hereunder. Upon any event of default that continues beyond any applicable cure
or grace period, Creditor may, at any time exercise all rights necessary or
required, in Creditor's discretion, in order to protect its interests under this
Note.

      In no event will Creditor be entitled to unearned or unaccrued interest or
other charges or rebates, except as may be authorized by law; nor will any such
party be entitled or receive at any time any such charges not allowed or
permitted by law, or any interest in excess of the highest lawful rate. Any
payments of interest in excess of the highest lawful rate will be credited by
Creditor on interest accrued or

                                       2
<PAGE>

principal or both; except that Borrower will have an option to demand refund as
to any such interest or charges in excess of the highest lawful rate.

      No delay or omission on the part of Creditor in exercising any right
hereunder will operate as a waiver of such right or of any other rights under
this Note. Presentment, demand, protest, notice of dishonor, and all other
notices are hereby waived by each and every Obligor. Obligor, jointly and
severally, promises and agrees to pay all costs of collection and reasonable
attorney's fees, including reasonable attorney's fees of any suit, out of court,
in trial, on appeal, in bankruptcy proceedings or otherwise, incurred or paid by
Creditor in enforcing this Note or preserving any right or interest of Creditor
hereunder. Any notice to Borrower will be sufficiently served for all purposes
if placed in the mail, postage prepaid, addressed to, or left upon the premises
at the address shown below or any other address shown on Creditor's records.

      Each Obligor hereby expressly consents to any and all extensions,
modifications, and renewals, in whole or in part, including but not limited to
changes in payment schedules and interest rates, and all delays in time of
payment or other performance which Creditor may grant or permit at any time and
from time to time without limitation and without any notice to or further
consent of any Obligor. Each Obligor will also be bound by each of the foregoing
terms, without the requirement that Creditor first go against any security
interest otherwise held by Creditor.

      WAIVER OF JURY TRIAL. OBLIGOR AND CREDITOR (BY ITS ACCEPTANCE OF THIS
NOTE) HEREBY AGREE AS FOLLOWS: (A) EACH OF THEM KNOWINGLY, VOLUNTARILY,
INTENTIONALLY, AND IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY
IN ANY LAWSUIT, PROCEEDING, COUNTERCLAIM, OR OTHER LITIGATION (AN "ACTION")
BASED UPON, OR ARISING OUT OF, UNDER, OR IN CONNECTION WITH, THIS NOTE OR ANY
RELATED DOCUMENTS, INSTRUMENTS, OR AGREEMENTS (WHETHER ORAL OR WRITTEN AND
WHETHER EXPRESS OR IMPLIED AS A RESULT OF A COURSE OF DEALING, A COURSE OF
CONDUCT, A STATEMENT, OR OTHER ACTION OF EITHER PARTY); (B) NEITHER OF THEM MAY
SEEK A TRIAL BY JURY IN ANY SUCH ACTION; (C) NEITHER OF THEM WILL SEEK TO
CONSOLIDATE ANY SUCH ACTION (IN WHICH A JURY TRIAL HAS BEEN WAIVED) WITH ANY
OTHER ACTION IN WHICH A JURY TRIAL CANNOT BE OR HAS NOT BEEN WAIVED; AND (D)
NEITHER OF THEM HAS IN ANY WAY AGREED WITH OR REPRESENTED TO THE OTHER OF THEM
THAT THE PROVISIONS OF THIS SECTION WILL NOT BE FULLY ENFORCED IN ALL INSTANCES.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

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<PAGE>

      IN WITNESS WHEREOF, Borrower has executed and delivered this Note on the
date first above stated.

Borrower's Address:                          BORROWER:

3535 Quakerbridge Road
Mercerville, NJ 08619                        LASER ENERGETICS, INC.,
                                             a Florida corporation
Borrower's Tax Identification No.:
59-3093561
                                             By: /s/ Robert D. Battis
                                                 -------------------------------
                                             Name: Robert D. Battis
                                                   -----------------------------
                                             Its:  President & CEO
                                                   -----------------------------

                                                            [SEAL]

STATE OF NEW JERSEY       )
                          ) SS:
COUNTY OF MERCER          )

      The foregoing instrument was sworn to, subscribed and acknowledged before
me this 6th day of October, 2004, by Robert Battis, as President of LASER
ENERGETICS, INC., a Florida corporation, who |X| is personally known to me or
|_| produced his/her driver's license as identification.

SIGNING AS NOTARY AND NOT AS                 /s/ Myra C. Gibson
ENDORSER OR GUARANTOR OF THIS                -----------------------------------
NOTE                                         Notary Public, State of New Jersey

                                                      Myra C. Gibson
                                                 NOTARY PUBLIC OF NEW JERSEY
                                             MY COMMISSION EXPIRES OCT. 13, 2005
                                             -----------------------------------
                                             Print, Type or Stamp Name:

                                             Commission No.:
                                                             -------------------
                                             My Commission Expires:
                                                                    ------------

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<PAGE>

                                    EXHIBIT A

                            ORIGINAL PROMISSORY NOTE

                                 (see attached)

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<PAGE>

                                   SCHEDULE A

                          DESCRIPTION OF AMENDED NOTES

1.    Amended, Restated and Renewed Promissory Note made by Laser Energetics,
      Inc., a Florida corporation, payable to the order of the Estate of Sidney
      Dworkin in the face amount of $332,402.00

2.    Amended, Restated and Renewed Promissory Note made by Laser Energetics,
      Inc., a Florida corporation, payable to the order of the Estate of Sidney
      Dworkin in the face amount of $250,000.00

3.    Amended, Restated and Renewed Promissory Note made by Laser Energetics,
      Inc., a Florida corporation, payable to the order of the Estate of Sidney
      Dworkin in the face amount of $113,228.00

4.    Amended, Restated and Renewed Promissory Note made by Laser Energetics,
      Inc., a Florida corporation, payable to the order of the Estate of Sidney
      Dworkin in the face amount of $40,000.00

5.    Amended, Restated and Renewed Promissory Note made by Laser Energetics,
      Inc., a Florida corporation, payable to the order of the Estate of Sidney
      Dworkin in the face amount of $30,000.00

6.    Amended, Restated and Renewed Promissory Note made by Laser Energetics,
      Inc., a Florida corporation, payable to the order of Marc Dworkin in the
      face amount of $73,601.00

7.    Amended, Restated and Renewed Promissory Note made by Laser Energetics,
      Inc., a Florida corporation, payable to the order of Elliott "Bud" Dworkin
      in the face amount of $70,218.00[LETTERHEAD OF LASER ENERGETICS, INC.]

THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED.
MOREOVER, THIS NOTE IS NON-NEGOTIABLE AND, AS SUCH, NON-TRANSFERABLE. REGARDLESS
OF WHETHER THIS NOTE CONTINUES TO BE NON-NEGOTIABLE OR IS AMENDED TO BE
NEGOTIABLE, NO INTEREST IN THIS NOTE MAY BE OFFERED OR SOLD EXCEPT PURSUANT TO
(i) AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933, AS
AMENDED, OR (ii) AN EXEMPTION FROM REGISTRATION UNDER SAID ACT WHERE THE HOLDER
HAS FURNISHED TO THE COMPANY AN OPINION OF ITS COUNSEL REASONABLY SATISFACTORY
TO THE COMPANY THAT AN EXEMPTION FROM REGISTRATION UNDER SUCH ACT IS AVAILABLE.

                             LASER ENERGETICS, INC.

                       NON-NEGOTIABLE 15% PROMISSORY NOTE

$1,690.00                                                As of March 21, 2000
                                                         Mercervilie, New Jersey

      FOR VALUE RECEIVED, the undersigned, Laser Energetics, Inc., a Florida
corporation (the "Payor"), having its executive office and principal place of
business at 4044 Quaker Bridge Road, Mercerville, New Jersey 08619, hereby
promises to pay to Eileen Berke (the "Payee"), on April 23, 2004 (the "Maturity
Date"), at the Payee's address as indicated by the records of the Payor or, at
such other place as the Payee shall hereafter specify in writing, the principal
sum of One Thousand Six Hundred Ninety Dollars ($1,690.00), in such coin or
currency of the United States of America as at the time shall be legal tender
for the payment of public and private debts.

      1. Interest and Payment.

            1.1. The unpaid principal amount hereof shall bear simple interest
from the date hereof at the rate of 15% per annum until the Maturity Date (or
until any such earlier date of payment if this Note is prepaid as hereinafter
provided).

            1.2. Interest shall be payable on the Maturity Date.

            1.3. In no event shall the Payee be entitled to receive interest,
however characterized and including other consideration received in connection
with this Note, at an effective rate in excess of the maximum rate permitted by
law. In the event that a court of competent jurisdiction shall determine that
such amounts paid or agreed to be paid by the Payor in connection with this Note
causes the effective interest rate on this Note to exceed the maximum rate
permitted by law, such interest or other consideration shall automatically be
reduced to a rate which results in an effective interest rate under this Note
equal to the maximum

                                                                         /s/ RDB

<PAGE>

                                                                          [LOGO]

rate permitted by law over the term hereof, and, in such event, the Payee shall
either apply to the reduction of the unpaid principal balance of this Note any
amounts received by it deemed to constitute excessive interest or refund such
excess to Payor.

      2. Replacement of Note.

            2.1 In case this Note is mutilated, destroyed, lost or stolen, the
Payor shall, at its sole expense, execute, register and deliver, a new Note, in
exchange and substitution for this Note, if mutilated, or in lieu of and
substitution for this Note, if destroyed, lost or stolen. In the case of
destruction, loss or theft, the Payee shall furnish to the Payor indemnity
reasonably satisfactory to the Payor, and in the case of mutilation, the Payee
shall also furnish to the Payor evidence to its reasonable satisfaction of the
mutilation, destruction, loss or theft of this Note and of the ownership
thereof. Any replacement Note so issued shall be in the same outstanding
principal amount as this Note and dated the date to which interest shall have
been paid on this Note, or if no interest shall have yet been paid, dated the
date of this Note.

            2.2. Every Note issued pursuant to the provisions of Section 2.1
hereof in substitution for this Note shall constitute an additional contractual
obligation of the Payor, whether or not this Note shall be found at any time, or
be enforceable by anyone.

      3. Prepayment. At the option of the Payor, this Note may be prepaid in
whole at any time, or in part from time to time, without penalty or premium.
Each partial prepayment of this Note shall first be applied to interest accrued
through the date of prepayment and then to principal.

      4. Events of Default. If any of the following conditions events or acts
shall occur:

            4.1. The dissolution of the Payor or any vote in favor thereof by
the Board of Directors and shareholders of the Company; or

            4.2. The Payor's insolvency, assignment for the benefit of
creditors, application for or appointment of a receiver, filing of a voluntary
or involuntary petition under any provision of the Federal Bankruptcy Code or
amendments thereto or any other federal or state statute affording relief to
debtors; or there shall be commenced against the Payor any such proceeding or
filed against the Payor any such application or petition which proceeding,
application or petition is not dismissed or withdrawn within thirty (30) days of
commencement or filing as the case may be; or

            4.3. The failure by the Payor to make any payment of any amount of
principal on, or accrued interest under, this Note, which failure shall continue
for a period of five (5) days, as and when the same shall become due and
payable; or

            4.4. The admission in writing of the Payor's inability to pay its
debts as they mature.

                                                                         /s/ RDB

                                       2
<PAGE>

                                                                          [LOGO]

      5. Suits for Enforcement and Remedies. If any one or more defaults shall
occur and be continuing, the Payee may proceed to protect and enforce such
Payee's rights either by suit in equity or by action at law, or both, whether
for the specific performance of any covenant, condition or agreement contained
in this Note or in any agreement or document referred to herein or in aid of the
exercise of any power granted in this Note or in any agreement or document
referred to herein, or proceed to enforce the payment of this Note or to enforce
any other legal or equitable right of the Payee of this Note. No right or remedy
herein or in any other agreement or instrument conferred upon the holder of this
Note is intended to be exclusive of any other right or remedy, and each and
every such right or remedy shall be cumulative and shall be in addition to every
other right and remedy given hereunder or now or hereafter existing at law or in
equity or by statute or otherwise.

      6. Unconditional Obligation; Fees, Waivers, Other.

            6.1. The obligations to make the payments provided for in this Note
are absolute and unconditional and not subject to any defense, set-off,
counterclaim, rescission, recoupment or adjustment whatsoever.

            6.2. If the Payee shall institute any action to enforce the
collection of any amount of principal of and/or interest on this Note, there
shall be immediately due and payable from the Payor, in addition to the then
unpaid sum of this Note, all reasonable costs and expenses incurred by the Payee
in connection therewith, including, without limitation, reasonable attorneys'
fees and disbursements, except in the event the action by Payee is not
meritorious.

            6.3. No forbearance, indulgence, delay or failure to exercise any
right or remedy with respect to this Note shall operate as a waiver, nor as an
acquiescence in any default, nor shall any single or partial exercise of any
right or remedy preclude any other or further exercise thereof or the exercise
of any other right or remedy.

            6.4. This Note may not be modified except by a writing duly executed
by the Payor and the Payee.

            6.5. The Payor hereby expressly waives demand and presentment for
payment, notice of nonpayment, notice of dishonor, protest, notice of protest,
bringing of suit, and diligence in taking any action to collect amounts called
for hereunder, and shall be directly and primarily liable for the payment of all
sums owing and to be owing herein, regardless of and without any notice,
diligence, act or omission with respect to the collection of any amount called
for hereunder or in connection with any right, lien, interest or property at any
and all times which the Payee had or is existing as security for any amount
called for hereunder.

            6.6. The Payor shall bear all of its expenses, including attorneys'
fees incurred in connection with the preparation of this Note.

                                                                         /s/ RDB

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<PAGE>

                                                                          [LOGO]

      7. Restriction on Transfer. By its acceptance of this Note, the Payee
acknowledges that this Note is non-negotiable and, as such, non-transferable and
has not been registered under the securities laws of the United States of
America or any state thereof and represents that this Note has been acquired for
investment and, even if subsequently amended to be negotiable, no interest in
this Note may be offered for sale, sold, delivered after sale, transferred,
pledged, or hypothecated in the absence of registration and qualification of
this Note under applicable federal and state securities laws or an opinion of
counsel of the Payee reasonably satisfactory to the Payor that such registration
and qualification are not required.

      8. Initial Public Offering. The Payor agrees that the Payee shall have the
right to subscribe for a minimum of such number of shares as may be purchased at
the initial public offering price using the proceeds of the principal and
interest due on the Maturity Date under this Note. The Payor will use its best
efforts to make available such additional shares as may be requested by the
Payee.

      9. Miscellaneous.

            9.1. The headings of the various paragraphs of this Note are for
convenience of reference only and shall in no way modify any of the terms or
provisions of this Note.

            9.2. All notices required or permitted to be given hereunder shall
be in writing and shall be deemed to have been duly given when personally
delivered or three (3) days after being sent by registered or certified mail,
return receipt requested, postage prepaid, to the address of the intended
recipient as indicated by the records of the Payor or at such other address as
the intended recipient shall have hereafter given to the other party hereto
pursuant to the provisions hereof.

            9.3. This Note and the obligations of the Payor and the rights of
the Payee shall be governed by and construed in accordance with the laws of the
State of New Jersey with respect to contracts made and to be fully performed
therein.

            9.4. This Note shall bind the Payor and its successors and assigns.

                                                        LASER ENERGETICS, INC.

                                                        By: /s/ Robert D. Battis
                                                            --------------------
                                                            Robert D. Battis

                                        4

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