Document:

Exhibit
      10.3

    

    NONQUALIFIED
      STOCK OPTION AGREEMENT

    

    UBID.COM
      HOLDINGS, INC.

    2005
      EQUITY INCENTIVE PLAN

    

    

    THIS
      AGREEMENT, made effective as of this 21st day of September, 2007 (the “Issue
      Date”), by and between uBid.com Holdings, Inc., a Delaware corporation (the
“Company”), and Jeffrey D. Hoffman (“Participant”).

    

    W
      I T N E
      S S E T H:

    

    WHEREAS,
      Participant on the date hereof is an employee and director of the Company;
      and

    

    WHEREAS,
      the Company wishes to grant an incentive stock option to Participant to purchase
      shares of the Company’s Common Stock pursuant to the Company’s 2005 Equity
      Incentive Plan (the “Plan”); and

    

    WHEREAS,
      the Administrator of the Plan has authorized the grant of an incentive stock
      option to Participant and has determined that, as of the effective date of
      this
      Agreement, the fair market value of the Company’s Common Stock is $1.14
      per
      share;

    

    NOW,
      THEREFORE, in consideration of the premises and of the mutual covenants herein
      contained, the parties hereto agree as follows:

    

    1. Grant
      of Option.
      The
      Company hereby grants to Participant on the date set forth above (the “Date of
      Grant”), the right and option (the “Option”) to purchase all or portions of an
      aggregate of Three Hundred Fifty Thousand (350,000) shares of Common Stock
      at a
      per share price of $1.14 the terms and conditions set forth herein, and subject
      to adjustment pursuant to Section 12 of the Plan. This Option is not
      intended
      to be an incentive stock option within the meaning of Section 422, or any
      successor provision, of the Internal Revenue Code of 1986, as amended (the
      “Code”), and the regulations thereunder. 

    

    2. Duration
      and Exercisability.

    

    a. General.
      The
      term during which this Option may be exercised shall terminate on September
      21,
      2017 (the “Expiration Date”), except
      as
      otherwise provided in Paragraphs 2(b) through 2(f) below. This Option shall
      become exercisable according to the following schedule:

    

    
      	
              Vesting
                Date

            	 	
              Percentage/Number
                of Shares

            
	
              September
                20, 2008

            	 	
              116,667

            
	
              September
                20, 2009

            	 	
              116,667

            
	
              September
                20, 2010

            	 	
              116,666

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Once
      the
      Option becomes exercisable to the extent of any of the aggregate number of
      shares specified in Paragraph 1, Participant may continue to exercise this
      Option with respect to such shares under the terms and conditions of this
      Agreement until the termination of the Option as provided herein. If Participant
      does not purchase upon an exercise of this Option the full number of shares
      which Participant is then entitled to purchase, Participant may purchase upon
      any subsequent exercise prior to this Option’s termination such previously
      unpurchased shares in addition to those Participant is otherwise entitled to
      purchase.

     

    b. Termination
      of Relationship (other than Termination for Cause, Disability or
      Death).
      If
      Participant ceases to be and employee of the Company or any Affiliate for any
      reason other than disability or death, this Option shall completely terminate
      on
      the earlier of (i) the close of business on the three-month anniversary of
      the
      date of termination of Participant’s relationship, and (ii) the Expiration
      Date of this Option stated in Paragraph 2(a) above. In such period following
      such termination of Participant’s relationship, this Option shall be exercisable
      only to the extent the Option was exercisable on the vesting date immediately
      preceding the date on which Participant’s relationship with the Company or
      Subsidiary has terminated, but had not previously been exercised. To the extent
      this Option was not exercisable upon the termination of such relationship,
      or if
      Participant does not exercise the Option within the time specified in this
      Paragraph 2(b), all rights of Participant under this Option shall be
      forfeited.

    

    c. Termination
      of Relationship for Cause.
      If
      Participant’s relationship with the Company or any Affiliate is terminated for
“cause,” the unexercised portion of this Option shall immediately expire, and
      all rights of Participant under this Option shall be forfeited. Solely for
      purposes of this Paragraph 2(c), “cause” shall mean (i)
      the
      continued failure of the Participant to substantially perform his material
      duties to and responsibilities for the Company (other than any such failure
      resulting from a disability (as defined in Code Section 22(e), or any successor
      provision)); (ii) the conviction of, or plea of guilty or nolo
      contendere
      to a
      felony; or (iii) fraud,
      dishonesty, competition with the Company, unauthorized use of any of the
      Company’s or any Affiliate’s trade secrets or confidential
      information,
      a
      material breach of the Company’s policies or codes of conduct, a willful or
      material breach of any agreement between the Participant and the Company,
      including this Agreement, or gross misconduct which is materially and
      demonstratively injurious to the Company.

     

    d. Disability.
      If
      Participant ceases to be an employee of the Company or any Affiliate because
      of
      disability (as defined in Code Section 22(e), or any successor provision),
      this
      Option shall completely terminate on the earlier of (i) the close of business
      on
      the twelve-month anniversary of the date of termination of Participant’s
      relationship, and (ii) the Expiration Date of this Option stated in
      Paragraph 2(a) above. In such period following such termination of Participant’s
      relationship, this Option shall be exercisable only to the extent the Option
      was
      exercisable on the vesting date immediately preceding the date on which
      Participant’s relationship with the Company or Subsidiary has terminated, but
      had not previously been exercised. To the extent this Option was not exercisable
      upon the termination of such relationship, or if Participant does not exercise
      the Option within the time specified in this Paragraph 2(c), all rights of
      Participant under this Option shall be forfeited.

    

    e. Death.
      In
      the
      event of Participant’s death, this Option shall terminate on the earlier of (i)
      the close of business on the twelve-month anniversary of the date of
      Participant’s death, and (ii) the Expiration Date of this Option stated in
      Paragraph 2(a) above. In such period following Participant’s death, this Option
      may be exercised by the person or persons to whom Participant’s rights under
      this Option shall have passed by Participant’s will or by the laws of descent
      and distribution only to the extent the Option was exercisable on the vesting
      date immediately preceding the date of Participant’s death, but had not
      previously been exercised. To the extent this Option was not exercisable upon
      the date of Participant’s death, or if such person or persons fail to exercise
      this Option within the time specified in this Paragraph 2(d), all rights under
      this Option shall be forfeited.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    f. Change
      of Control.
      Upon
      a
      Change of Control (as defined below), this Option shall immediately become
      fully
      vested. For
      purposes of this Agreement, “Change of Control” means: (A) any sale, lease,
      exchange or other transfer (in one transaction or a series of related
      transactions) of all, or substantially all, of the assets of the Company other
      than any sale, lease, exchange or other transfer to any company where the
      Company owns, directly or indirectly, 100 percent of the outstanding voting
      securities of such company after any such transfer; (B) any person or persons
      (as such term is used in Section 13(d) of the Exchange Act of 1934, as amended),
      other than the holders of voting securities of the Company as of the Issue
      Date,
      shall acquire or become the beneficial owner (within the meaning of Rule 13d-3
      under the Exchange Act) whether directly, indirectly, beneficially or of record,
      of 51% or more of outstanding voting securities of the Company; or (C)
      consummation by any entity, person, or group (including any affiliate thereof,
      other than the Company) of a tender offer or exchange offer where the offeree
      acquires more than 51% of the then outstanding voting securities of the
      Company.

    

    3.  Manner
      of Exercise.

    

    a. General.
      The
      Option may be exercised only by Participant (or other proper party in the event
      of death or incapacity), subject to the conditions of the Plan and subject
      to
      such other administrative rules as the Administrator may deem advisable, by
      delivering within the Option Period written notice of exercise to the Company
      at
      its principal office. The notice shall state the number of shares as to which
      the Option is being exercised and shall be accompanied by payment in full of
      the
      Option price for all shares designated in the notice. The exercise of the Option
      shall be deemed effective upon receipt of such notice by the Company and upon
      payment that complies with the terms of the Plan and this Agreement. The Option
      may be exercised with respect to any number or all of the shares as to which
      it
      can then be exercised and, if partially exercised, may be so exercised as to
      the
      unexercised shares any number of times during the Option period as provided
      herein.

    

    b. Form
      of Payment.
      Subject
      to approval by the Administrator, payment of the option price by Participant
      shall be in the form of cash, personal check, certified check or mature,
      previously-acquired shares of Common Stock of the Company, broker-assisted
      exercise, or any combination thereof; provided, however, that Participant shall
      not be permitted to pay the option price in the form of a broker-assisted
      exercise or in the form of mature, previously-acquired shares of Common Stock
      until after the effective date of an initial public offering of the Company’s
      Common Stock; and provided, further, that Participant shall not be permitted
      to
      pay the option price in the form of a broker-assisted exercise or in the form
      of
      mature, previously-acquired shares of Common Stock if payment in such form
      will
      cause the Company to recognize a compensation expense under generally accepted
      accounting principles. Any stock tendered as part of such payment shall be
      valued at its Fair Market Value as provided in the Plan. For purposes of this
      Agreement, “mature, previously-acquired shares of Common Stock” and
“broker-assisted exercise” shall have the meaning set forth in Section 8 of the
      Plan. The Administrator may, in its discretion, permit Participant to tender
      such mature, previously-acquired shares through the actual delivery of such
      shares or through attestation of ownership on such forms as the Administrator
      may prescribe.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    c. Stock
      Transfer Records.
      As soon
      as practicable after the effective exercise of all or any part of the Option,
      Participant shall be recorded on the stock transfer books of the Company as
      the
      owner of the shares purchased, and the Company shall deliver to Participant
      one
      or more duly issued stock certificates evidencing such ownership. All requisite
      original issue or transfer documentary stamp taxes shall be paid by the Company.
      

    4. Miscellaneous.

    

    a. Rights
      as Shareholder.
      This
      Agreement shall not confer on Participant any right with respect to continuance
      of any relationship with the Company or any of its Affiliates, nor will it
      interfere in any way with the right of the Company to terminate such
      relationship. Participant shall have no rights as a shareholder with respect
      to
      shares subject to this Option until such shares have been issued to Participant
      upon exercise of this Option. No adjustment shall be made for dividends
      (ordinary or extraordinary, whether in cash, securities or other property),
      distributions or other rights for which the record date is prior to the date
      such shares are issued, except as provided in Section 12 of the
      Plan.

    

    b. Securities
      Law Compliance.
      The
      exercise of all or any parts of this Option shall only be effective at such
      time
      as counsel to the Company shall have determined that the issuance and delivery
      of Common Stock pursuant to such exercise will not violate any state or federal
      securities or other laws. Participant may be required by the Company, as a
      condition of the effectiveness of any exercise of this Option, to agree in
      writing that all Common Stock to be acquired pursuant to such exercise shall
      be
      held, until such time that such Common Stock is registered and freely tradable
      under applicable state and federal securities laws, for Participant’s own
      account without a view to any further distribution thereof, that the
      certificates for such shares shall bear an appropriate legend to that effect
      and
      that such shares will be not transferred or disposed of except in compliance
      with applicable state and federal securities laws. 

    

    c. Mergers,
      Recapitalizations, Stock Splits, Etc.
      Pursuant
      and subject to Section 12 of the Plan, certain changes in the number or
      character of the Common Stock of the Company (through merger, consolidation,
      exchange, reorganization, divestiture (including a spin-off), liquidation,
      recapitalization, stock split, stock dividend or otherwise) shall result in
      an
      adjustment, reduction or enlargement, as appropriate, in Participant’s rights
      with respect to any unexercised portion of the Option (i.e.,
      Participant shall have such “anti-dilution” rights under the Option with respect
      to such events, but shall not have “preemptive” rights).

    

    d. Shares
      Reserved.
      The
      Company shall at all times during the option period reserve and keep available
      such number of shares as will be sufficient to satisfy the requirements of
      this
      Agreement.

    

    e. Withholding
      Taxes.
      In
      order to permit the Company to comply with all applicable federal or state
      income tax laws or regulations, the Company may take such action as it deems
      appropriate to insure that, if necessary, all applicable federal and state
      payroll, income or other taxes are withheld from any amounts payable by the
      Company to Participant. If the Company is unable to withhold such federal and
      state taxes, for whatever reason, Participant hereby agrees to pay to the
      Company an amount equal to the amount the Company would otherwise be required
      to
      withhold under federal or state law. Participant may, subject to the approval
      and discretion of the Administrator or such administrative rules it may deem
      advisable, to assure compliance with Rule 16b-3 of any successor provision,
      as
      then in effect of the General Rules and Regulations under the Securities and
      Exchange Act of 1934, if applicable, elect to have all or a portion of such
      tax
      withholding obligations satisfied by delivering shares of the Company’s Common
      Stock having a Fair Market Value equal to such obligations.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    f. Nontransferability.
      During
      the lifetime of Participant, the accrued Option shall be exercisable only by
      Participant or by the Participant’s guardian or other legal representative, and
      shall not be assignable or transferable by Participant, in whole or in part,
      other than by will or by the laws of descent and distribution.

    

    g. 2005
      Equity Incentive Plan.
      The
      Option evidenced by this Agreement is granted pursuant to the Plan, a copy
      of
      which Plan has been made available to Participant and is hereby incorporated
      into this Agreement. This Agreement is subject to and in all respects limited
      and conditioned as provided in the Plan. The Plan governs this Option and,
      in
      the event of any questions as to the construction of this Agreement or in the
      event of a conflict between the Plan and this Agreement, the Plan shall govern,
      except as the Plan otherwise provides.

    

    h. Lockup
      Period Limitation.
      Participant agrees that in the event the Company advises Participant that it
      plans an underwritten public offering of its Common Stock in compliance with
      the
      Securities Act of 1933, as amended, and that the underwriter(s) seek to impose
      restrictions under which certain shareholders may not sell or contract to sell
      or grant any option to buy or otherwise dispose of part or all of their stock
      purchase rights of the underlying Common Stock, Participant hereby agrees that
      for a period not to exceed 180 days from the prospectus, Participant will not
      sell or contract to sell or grant an option to buy or otherwise dispose of
      this
      option or any of the underlying shares of Common Stock without the prior written
      consent of the underwriter(s) or its representative(s).

    

    i. Blue
      Sky Limitation.
      Notwithstanding
      anything in this Agreement to the contrary, in the event the Company makes
      any
      public offering of its securities and determines, in its sole discretion, that
      it is necessary to reduce the number of issued but unexercised stock purchase
      rights so as to comply with any state securities or Blue Sky law limitations
      with respect thereto, the Board of Directors of the Company shall (i) accelerate
      the exercisability of this Option and the date on which this Option must be
      exercised, provided that the Company gives Participant 15 days’ prior written
      notice of such acceleration, and (ii) cancel any portion of this Option or
      any
      other option granted to Participant pursuant to the Plan which is not exercised
      prior to or contemporaneously with such public offering. Notice shall be deemed
      given when delivered personally or when deposited in the United States mail,
      first class postage prepaid and addressed to Participant at the address of
      Participant on file with the Company.

    

    j. Accounting
      Compliance.
      Participant agrees that, if a merger, reorganization, liquidation or other
      “transaction” as defined in Section 12 of the Plan occurs and Participant is an
“affiliate” of the Company or any Affiliate (as defined in applicable legal and
      accounting principles) at the time of such transaction, Participant will comply
      with all requirements of Rule 145 of the Securities Act of 1933, as amended,
      and
      the requirements of such other legal or accounting principles, and will execute
      any documents necessary to ensure such compliance.

    

    k. Stock
      Legend.
      The
      Administrator may require that the certificates for any shares of Common Stock
      purchased by Participant (or, in the case of death, Participant’s successors)
      shall bear an appropriate legend to reflect the restrictions of Paragraphs
      4(b),
      4(h) and 4(i) of this Agreement.

     

       l. Scope
      of Agreement; Amendment.
      This
      Agreement shall bind and inure to the benefit of the Company, its Affiliates
      and
      its successors and assigns and Participant and any successor or successors
      of
      Participant permitted by Paragraph 2 or Paragraph 4(f) above. Notwithstanding
      anything in this Agreement or the Plan to the contrary, the Company expressly
      reserves the right to amend this Agreement without Participant’s consent to the
      extent necessary or desirable to comply with Code Section 409A, and the
      regulations, notices and other guidance of general applicability issued
      thereunder. 

     

    IN
      WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed
      on
      the day and year first above written.

     

     

    
      	 	 	 
	 	UBID.COM
              HOLDINGS, INC.
	 
 	 
 	 
 
	 	By:	/s/
              Miguel A. Martinez,
              Jr.                                        
              
	 	Its:Vice
              President,
              Finance                                     
                                                     
              
	 	 

    

    
      	 	 	 
	 
 	 
 	 
 
	 	/s/ Jeffrey
              D.
              Hoffman                                                      
	 	Jeffrey D. HoffmanTHIS
                NOTE AND THE COMMON SHARES ISSUABLE UPON CONVERSION OF THIS NOTE
                HAVE NOT
                BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. THIS
                NOTE
                AND THE COMMON SHARES ISSUABLE UPON CONVERSION OF THIS NOTE MAY NOT
                BE
                SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF
                AN
                EFFECTIVE REGISTRATION STATEMENT AS TO THIS NOTE UNDER SAID ACT OR
                AN
                OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE COMPANY THAT SUCH
                REGISTRATION IS NOT REQUIRED. 

            	
               

            

    

     

    5%
      SENIOR CONVERTIBLE NOTE

    

    FOR
      VALUE
      RECEIVED, Lantis Laser Inc., a Nevada Corporation (hereinafter called
      "Borrower"), hereby promises to pay to _________________________ (the "Holder"),
      or its registered assigns or successors in interest or order, without demand,
      the sum of [_________] Dollars ($___________) (“Principal Amount”), with simple
      and unpaid interest thereon, 36 months from closing date of March ___, 2007
      (the
      "Maturity Date"), if not sooner paid.

    

    ARTICLE
      I

    

    INTEREST
      

    

    1.1.    Interest
      Rate.
      Subject
      to Section 5.7 hereof, interest payable on this Note shall accrue at a rate
      per
      annum (the "Interest Rate") of five percent (5%). Interest on the Principal
      Amount shall accrue from the date of this Note and shall be payable annually.
      The Company shall issue the first year’s interest to the Holder twelve months
      (12) following the date this note is Issued.

     

    1.2    Default
      Interest Rate.
      Following the occurrence and during the continuance of an Event of Default,
      which, if susceptible to cure is not cured within twenty (20) days, otherwise
      then from the first date of such occurrence, the annual interest rate on this
      Note shall (subject to Section 5.7) automatically be increased to ten percent
      (10%) per annum. 

      

    ARTICLE
      II

    

    CONVERSION
      RIGHTS

    

    2.1.    Holder's
      Conversion Rights.
      The
      Holder shall have the right at all times, but not the obligation, to convert
      all
      or any portion of the then aggregate outstanding Principal Amount of this Note
      plus accrued interest, into shares of Common Stock, subject to the terms and
      conditions set forth in this Article III at the rate of $0.15 per share of
      Common Stock (“Fixed Conversion Price”) as same may be adjusted pursuant to this
      Note and the Subscription Agreement. The Holder may exercise such right by
      delivery to the Borrower of a written Notice of Conversion pursuant to Section
      3.2. 

      

    2.2.    Mechanics
      of Holder's Conversion.
      

    

    (a)    In
      the event that the Holder elects to convert any amounts outstanding under this
      Note into Common Stock, the Holder shall give notice of such election by
      delivering an executed and completed notice of conversion (a "Notice of
      Conversion") to the Borrower, which Notice of Conversion shall provide a
      breakdown in reasonable detail of the Principal Amount, accrued interest and
      amounts being converted. The original Note is not required to be surrendered
      to
      the Borrower until all sums due under the Note have been paid. On each
      Conversion Date (as hereinafter defined) and in accordance with its Notice
      of
      Conversion, the Holder shall make the appropriate reduction to the Principal
      Amount, accrued interest and fees as entered in its records. Each date on which
      a Notice of Conversion is delivered or telecopied to the Borrower in accordance
      with the provisions hereof shall be deemed a "Conversion Date." A form of Notice
      of Conversion to be employed by the Holder is annexed hereto as Exhibit
      A.

    

    (b)    Pursuant
      to the terms of a Notice of Conversion, the Borrower will issue instructions
      to
      the transfer agent accompanied by an opinion of counsel, if so required by
      the
      Borrower's transfer agent and shall cause the transfer agent to transmit the
      certificates representing the Conversion Shares to the Holder by crediting
      the
      account of the Holder's designated broker with the Depository Trust Corporation
      ("DTC") through its Deposit Withdrawal Agent Commission ("DWAC") system within
      three (3) business days after receipt by the Borrower of the Notice of
      Conversion (the "Delivery Date"). In the case of the exercise of the conversion
      rights set forth herein the conversion privilege shall be deemed to have been
      exercised and the Conversion Shares issuable upon such conversion shall be
      deemed to have been issued upon the date of receipt by the Borrower of the
      Notice of Conversion. The Holder shall be treated for all purposes as the record
      holder of such shares of Common Stock, unless the Holder provides the Borrower
      written instructions to the contrary. Notwithstanding the foregoing to the
      contrary, the Borrower or its transfer agent shall only be obligated to issue
      and deliver the shares to the DTC on the Holder’s behalf via DWAC (or
      certificates free of restrictive legends) if the registration statement
      providing for the resale of the shares of Common Stock issuable upon the
      conversion of this Note is effective and the Holder has complied with all
      applicable securities laws in connection with the sale of the Common Stock,
      including, without limitation, the prospectus delivery requirements. In the
      event that Conversion Shares cannot be delivered to the Holder via DWAC, the
      Borrower shall deliver physical certificates representing the Conversion Shares
      by the Delivery Date.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    2.3.    Conversion
      Calculations.

    

    (a)    The
      number of shares of Common Stock to be issued upon each conversion of this
      Note
      pursuant to this Article III shall be determined by dividing that portion of
      the
      Principal Amount and interest and fees to be converted, if any, by the then
      applicable Fixed Conversion Price.

     

    (b)    The
      Fixed Conversion Price and number and kind of shares or other securities to
      be
      issued upon conversion shall be subject to adjustment from time to time upon
      the
      happening of certain events while this conversion right remains outstanding,
      as
      follows:

    

    A.    Merger,
      Sale of Assets, etc.
      If the
      Borrower at any time shall consolidate with or merge into or sell or convey
      all
      or substantially all its assets to any other corporation, this Note, as to
      the
      unpaid principal portion thereof and accrued interest thereon, shall thereafter
      be deemed to evidence the right to purchase such number and kind of shares
      or
      other securities and property as would have been issuable or distributable
      on
      account of such consolidation, merger, sale or conveyance, upon or with respect
      to the securities subject to the conversion or purchase right immediately prior
      to such consolidation, merger, sale or conveyance. The foregoing provision
      shall
      similarly apply to successive transactions of a similar nature by any such
      successor or purchaser. Without limiting the generality of the foregoing, the
      anti-dilution provisions of this Section shall apply to such securities of
      such
      successor or purchaser after any such consolidation, merger, sale or
      conveyance.

    

    B.    Reclassification,
      etc.
      If the
      Borrower at any time shall, by reclassification or otherwise, change the Common
      Stock into the same or a different number of securities of any class or classes,
      this Note, as to the unpaid principal portion thereof and accrued interest
      thereon, shall thereafter be deemed to evidence the right to purchase an
      adjusted number of such securities and kind of securities as would have been
      issuable as the result of such change with respect to the Common Stock
      immediately prior to such reclassification or other change.

    

    C.    Stock
      Splits, Combinations and Dividends.
      If the
      shares of Common Stock are subdivided or combined into a greater or smaller
      number of shares of Common Stock, or if a dividend is paid on the Common Stock
      in shares of Common Stock, the Conversion Price shall be proportionately reduced
      in case of subdivision of shares or stock dividend or proportionately increased
      in the case of combination of shares, in each such case by the ratio which
      the
      total number of shares of Common Stock outstanding immediately after such event
      bears to the total number of shares of Common Stock outstanding immediately
      prior to such event.

    

    D.    
      Share
      Issuance.
      If the
      Borrower shall conduct any subsequent private placements or public offerings
      of
      Common Stock prior to the complete conversion or payment of this Note, for
      a
      consideration less than the Fixed Conversion Price that would be in effect
      at
      the time of such issue, then, and thereafter successively upon each such
      issuance, the Fixed Conversion Price shall be reduced to such other lower issue
      price.   

    

    (c)    Whenever
      the Conversion Price is adjusted pursuant to this section, the Borrower shall
      promptly mail to the Holder a notice setting forth the Conversion Price after
      such adjustment and setting forth a statement of the facts requiring such
      adjustment.

    

    2.4.   Reservation.
      During
      the period the conversion right exists, Borrower will reserve from its
      authorized and unissued Common Stock not less than one hundred fifty percent
      (150%) of the number of shares to provide for the issuance of Common Stock
      upon
      the full conversion of this Note. Borrower represents that upon issuance,
      such shares will be duly and validly issued, fully paid and non-assessable.
      Borrower agrees that its issuance of this Note shall constitute full authority
      to its officers, agents, and transfer agents who are charged with the duty
      of
      executing and issuing stock certificates to execute and issue the necessary
      certificates for shares of Common Stock upon the conversion of this
      Note.

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    

    2.5   Issuance
      of Replacement Note.
      Upon
      any partial conversion of this Note, a replacement Note containing the same
      date
      and provisions of this Note shall, at the written request of the Holder, be
      issued by the Borrower to the Holder for the outstanding Principal Amount of
      this Note and accrued interest which shall not have been converted or paid,
      provided Holder has surrendered an original Note to the Company. In the event
      that the Holder elects not to surrender a Note for reissuance upon partial
      payment or conversion, the Holder hereby indemnifies the Borrower against any
      and all loss or damage attributable to a third-party claim in an amount in
      excess of the actual amount then due under the Note.

    

    ARTICLE
      III

    

    EVENTS
      OF DEFAULT

    

    The
      occurrence of any of the following events of default ("Event of Default") shall,
      at the option of the Holder hereof, make all sums of principal and interest
      then
      remaining unpaid hereon and all other amounts payable hereunder immediately
      due
      and payable, upon demand, without presentment, or grace period, all of which
      hereby are expressly waived, except as set forth below:

     

    3.1    
      Failure
      to Pay Principal or Interest.
      The
      Borrower fails to pay any installment of Principal Amount, interest or other
      sum
      due under this Note or any Transaction Document when due and such failure
      continues for a period of ten (10) business days after the due
      date.

    

    3.2    
      Breach
      of Covenant.
      The
      Borrower breaches any material covenant or other term or condition of this
      Note
      any material respect and such breach, if subject to cure, continues for a period
      of ten (10) business days after written notice to the Borrower from the
      Holder.

    

    3.3    
      Breach
      of Representations and Warranties.
      Any
      material representation or warranty of the Borrower made herein or in any
      agreement, statement or certificate given in writing pursuant hereto or in
      connection herewith or therewith shall be false or misleading in any material
      respect as of the date made and the Closing Date.

      

    3.4    
      Receiver
      or Trustee.
      The
      Borrower or any Subsidiary of Borrower shall make an assignment for the benefit
      of creditors, or apply for or consent to the appointment of a receiver or
      trustee for them or for a substantial part of their property or business; or
      such a receiver or trustee shall otherwise be appointed.

    

    3.5    
      Judgments.
      Any
      money judgment, writ or similar final process shall be entered or filed against
      Borrower or any subsidiary of Borrower or any of their property or other assets
      for more than $25,000 and shall remain unvacated, unbonded or unstayed for
      a
      period of forty-five (45) days.

    

    3.6    
      Bankruptcy.
      Bankruptcy, insolvency, reorganization or liquidation proceedings or other
      proceedings or relief under any bankruptcy law or any law, or the issuance
      of
      any notice in relation to such event, for the relief of debtors shall be
      instituted by or against the Borrower or any Subsidiary of Borrower and if
      instituted against them are not dismissed within sixty (60) days of
      initiation.

    

    3.7    
      Delisting.
      Failure
      of the Common Stock to be quoted or listed on the OTC Pink Sheets; failure
      to
      comply with the requirements for continued listing on the OTC Pink Sheets for
      a
      period of seven consecutive trading days; or notification from the OTC Pink
      Sheets that the Borrower is not in compliance with the conditions for such
      continued listing on the OTC Pink Sheets..

    

    3.8    Stop
      Trade.
      An SEC
      or judicial stop trade order or OTC Pink Sheets trading suspension with respect
      to Borrower’s Common Stock that lasts for five or more consecutive trading
      days.

    

    3.9
        
      Failure
      to Deliver Common Stock or Replacement Note.
      Borrower's failure to timely deliver Common Stock to the Holder pursuant to
      and
      in the form required by this Note, or if requested by Borrower, a replacement
      Note, and such failure continues for a period of five (5) business days after
      the due date.

    

    3.10   Non-Registration
      Event.
      The
      failure of the company to obtain an effective registration statement by the
      earlier of twelve (12) months from the final closing date of this offering,
      or
      April 30, 2008.

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    

    3.11   Reverse
      Splits.
      The
      Borrower effectuates a reverse split of its Common Stock without twenty days
      prior written notice to the Holder.

     

    ARTICLE
      IV

    

    MISCELLANEOUS

    

    4.1   Failure
      or Indulgence Not Waiver.
      No
      failure or delay on the part of Holder hereof in the exercise of any power,
      right or privilege hereunder shall operate as a waiver thereof, nor shall any
      single or partial exercise of any such power, right or privilege preclude other
      or further exercise thereof or of any other right, power or privilege. All
      rights and remedies existing hereunder are cumulative to, and not exclusive
      of,
      any rights or remedies otherwise available.

    

    4.2   Notices.
      All
      notices, demands, requests, consents, approvals, and other communications
      required or permitted hereunder shall be in writing and, unless otherwise
      specified herein, shall be (i) personally served, (ii) deposited in the mail,
      registered or certified, return receipt requested, postage prepaid, (iii)
      delivered by reputable air courier service with charges prepaid, or (iv)
      transmitted by hand delivery, telegram, or facsimile, addressed as set forth
      below or to such other address as such party shall have specified most recently
      by written notice. Any notice or other communication required or permitted
      to be
      given hereunder shall be deemed effective (a) upon hand delivery or delivery
      by
      facsimile, with accurate confirmation generated by the transmitting facsimile
      machine, at the address or number designated below (if delivered on a business
      day during normal business hours where such notice is to be received), or the
      first business day following such delivery (if delivered other than on a
      business day during normal business hours where such notice is to be received)
      or (b) on the second business day following the date of mailing by express
      courier service, fully prepaid, addressed to such address, or upon actual
      receipt of such mailing, whichever shall first occur. The addresses for such
      communications shall be: (i) 

    

    4.3   Amendment
      Provision.
      The
      term "Note" and all references thereto, as used throughout this instrument,
      shall mean this instrument as originally executed, or if later amended or
      supplemented, then as so amended or supplemented.

    

    4.4   Assignability.
      This
      Note shall be binding upon the Borrower and its successors and assigns, and
      shall inure to the benefit of the Holder and its successors and
      assigns.

    

    4.5   Cost
      of Collection.
      If
      default is made in the payment of this Note, Borrower shall pay the Holder
      hereof reasonable costs of collection, including reasonable attorneys'
      fees.

    

    4.6   Governing
      Law.
      This
      Note shall be governed by and construed in accordance with the laws of the
      State
      of New Jersey, without regard to conflicts of laws principles that would result
      in the application of the substantive laws of another jurisdiction. Any action
      brought by either party against the other concerning the transactions
      contemplated by this Agreement shall be brought only in the state courts of
      New
      York or in the federal courts located in the State of New Jersey. The prevailing
      party shall be entitled to recover from the other party its reasonable
      attorney's fees and costs. In the event that any provision of this Note is
      invalid or unenforceable under any applicable statute or rule of law, then
      such
      provision shall be deemed inoperative to the extent that it may conflict
      therewith and shall be deemed modified to conform with such statute or rule
      of
      law. Any such provision which may prove invalid or unenforceable under any
      law
      shall not affect the validity or unenforceability of any other provision of
      this
      Note. Nothing contained herein shall be deemed or operate to preclude the Holder
      from bringing suit or taking other legal action against the Borrower in any
      other jurisdiction to collect on the Borrower's obligations to Holder, to
      realize on any collateral or any other security for such obligations, or to
      enforce a judgment or other court in favor of the Holder.

      

    4.7    Maximum
      Payments.
      Nothing
      contained herein shall be deemed to establish or require the payment of a rate
      of interest or other charges in excess of the maximum permitted by applicable
      law. In the event that the rate of interest required to be paid or other charges
      hereunder exceed the maximum permitted by such law, any payments in excess
      of
      such maximum shall be credited against amounts owed by the Borrower to the
      Holder and thus refunded to the Borrower.

    

    4.8    Redemption.
      This
      Note may not be redeemed or called without the consent of the Holder except
      as
      described in this Note.

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    

    4.9    Shareholder
      Status.
      The
      Holder shall not have rights as a shareholder of the Borrower with respect
      to
      unconverted portions of this Note. However, the Holder will have the rights
      of a
      shareholder of the Borrower with respect to the Shares of Common Stock to be
      received after delivery by the Holder of a Conversion Notice to the
      Borrower.

     

    IN
      WITNESS WHEREOF,
      Borrower has caused this Note to be signed in its name by an authorized officer
      as of the ____ day of March, 2007.

    
      	 	 	 
	 	
              Lantis
                Laser Inc.

            
	 
 	 
 	 
 
	
            	By:  	
            
	 	
              

              Name:
                Stanley B. Baron 

            
	 	
              Title: President
                & CEO

            

     

    
      	
              WITNESS: 

            	
               

            	
               

            	
               

            
	
               

            	
               

            	
               

            	
               

            
	
               

            	
               

            	
               

            	
               

            
	
              
 	
               

            	
               

            	 
	
               

            	
               

            	
               

            	
               

            

    

    

    
      
         

      

      
        5

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