Document:

CONTRACT AGREEMENT
                                     BETWEEN
                        THE UNIVERSITY OF CENTRAL FLORIDA
                                       AND
                             LASER ENERGETICS, INC.

      THIS AGREEMENT made and entered into by and between the University of
Central Florida, for and on behalf of the Florida Board of Regents, a body
corporate and an Agency of the State of Florida, hereinafter referred to as UCF,
which is an agency of the State of Florida, and Laser Energetics, Inc.,
hereinafter referred to as LEI, organized as a Corporation with its major place
of business located at 7 Goldenrod Court, Hamilton Township, New Jersey.

      WHEREAS, LEI'S purpose is to sponsor Dr. Martin Richardson at the Center
for Research & Education in Optics & Lasers (CREOL), an institute of UCF, for
developments and investigations of advanced laser technology on a project by
project basis; and

      WHEREAS, UCF'S purpose is to develop and investigate advanced laser
technology and provide LEI with such technology under the terms of this
agreement; and

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

Article 1.0 Type of Agreement

1.1 This is a Cost Reimbursement Task Order Research Agreement. No work is
authorized by this Agreement except by use of a written Task Order issued to UCF
through LEI. The Task Orders, and amendments thereto, will be in the same or
similar format as set forth in this Agreement. The Statement of Work for each
Task Order shall be for specific work within the overall purpose of this
Agreement.

Article 2.0 Task Orders

2.1 UCF agrees to identify, define, develop, and implement activities which will
be outlined in each separate Task Order. Each Task Order shall consist of a
complete technical and cost proposal and amendments thereto, and a statement of
work. Each Task Order will be negotiated between LEI and Dr. Martin Richardson,
and approved by UCF on behalf of Dr. Richardson. Each Task Order will be made
apart of this Agreement through an attachment herein.

2.2 Comprehensive technical reports may be required for each Task Order as
specified in the Statement of Work of each Task Order.

                                                          LASER ENERGETICS, INC.
                                                          CONFIDENTIAL
                                                          DATE: 12-21-95
                                                                         /s/ RDB

                                  Page 1 of 8
<PAGE>

2.3 LEI'S designated representative shall have the right, from time to time, by
written instruction to UCF, to request changes in or additions to said services.
Any changes or additions will be accompanied by a cost impact estimate accepted
by both parties as represented by their respective contracting officers.

2.4 LEI shall be liable only for the estimated cost established by each Task
Order.

2.5 In no event shall the period of performance of any Task Order extend beyond
the overall period of performance of this Agreement as outlined in Article 10.

2.6 Any claims for recovery of costs which are not clearly set forth in each
separate Task Order incorporated herein or by amendment must be asserted by UCF
in writing within thirty (30) days after the cause of such claim has occurred.
In the event a dispute arises as to the equitable adjustment of such claim, UCF
shall, at the direction of LEI proceed with the services pending resolution of
the dispute.

Article 3.0 Invoicing and Verification of Costs.

3.1 UCF shall submit invoices to LEI in accordance with each separate Task Order
invoicing requirements as outlined in the separate Task Order's statement of
work and budget. LEI shall pay UCF for its performance of the services within
thirty days from receipt of a valid invoice and associated deliverables, and
approval of LEI'S technical representative.

3.2 UCF shall submit invoices to:
    Laser Energetics, Inc.
    7 Goldenrod Court
    Hamilton Township, New Jersey 08690
    Attn: Mr. Robert Battis

3.3 This contract is issued on a Cost Reimbursable Task Order basis. UCF shall
maintain books and records supporting all costs for the services hereunder.
During UCF'S normal business hours for the duration of the Agreement and for a
period of three (3) years thereafter, LEI shall have access to such books and to
all other records of UCF as required to verify any and all reimbursable costs.

Article 4.0 Warranty.

4.1 UCF shall perform the services under this Agreement in accordance with
standards of care, skill and diligence consistent with (i) recognized and sound
research and development practices, procedures and techniques; (ii) all
applicable laws and regulations; (iii) the specifications, documents and
procedures applicable to the services; and (iv) the degree of knowledge, skill
and judgment normally exercised by universities with respect to services of a
similar nature.

                                  Page 2 of 8
<PAGE>

4.2 UCF warrants that it has the authority to enter into this contract with LEI
as outlined in each Task Order statement of work and budget and all other
articles incorporated herein.

Article 5.0 Proprietary Material, Confidentiality, and Use of Data.

5.1 Any materials belonging to or in the possession of LEI, whether written,
printed or otherwise recorded, shall be used by UCF only in the performance of
its duties hereunder, and UCF shall not record, reference, reproduce, or use
such materials for any other purpose without the express written consent of LEI.
All rights, title to and interest in such material shall remain with LEI.

5.2 Any materials belonging to or in the possession of UCF, whether written,
printed, or otherwise recorded, shall be used by LEI only in the performance of
its duties hereunder and LEI shall not record, reference, reproduce or use such
materials for any other purpose without the express written consent of UCF. All
rights, title to and interest in such material shall remain with UCF.

5.3 Both Parties agree to the following proprietary disclosure procedures:

a. During the term of this Agreement both Parties, to the extent of their right
to do so, may exchange technical information and other data which is considered
by the disclosing Party to be proprietary. In order for such information and
data to be considered proprietary and subject to this Agreement, it shall be
identified in writing at the time of disclosure by an appropriate legend,
marking, stamp or positive written identification on the face thereof to be
proprietary. Any Proprietary information which is exchanged between the Parties
orally or visually, in order to be subject to this Agreement, shall be
identified to the receiving Party orally at the time of disclosure and in
writing within thirty (30) days after such oral or visual disclosure. The
exclusive points of contact for the parties with respect to the exchange of the
proprietary information are as follows:

LEI: Mr. Robert D. Battis                 UCF: Dr. Martin Richardson
     Laser Energetics, Inc.                    UCF/CREOL
     7 Goldenrod Court                         12424 Research Parkway, Suite 400
     Hamilton Township, NJ. 08690              Orlando, Florida 32826
     (609) 587-8250  /s/ RDB                   (407)658-6819

b. That for a period of five (5) years from the first date of receipt of the
disclosing Parties proprietary information which has been or will be exchanged
relative to this Agreement, the receiving Party shall take reasonable steps to
preserve in confidence such proprietary information and prevent disclosure
thereof to third parties. The receiving Party shall further restrict disclosure
of such proprietary information to only those employees who have a need to know
and who have been advised to the restrictions on the disclosure and use.

                                  Page 3 of 8
<PAGE>

c. That such proprietary information delivered by the disclosing Party to the
receiving Party shall be used only for the sole purpose set forth in each Task
Order Statement of Work. No other use of the proprietary information is granted
without the written consent of the disclosing Party.

d. That the obligations with respect to disclosing and using such proprietary
information as set forth in paragraphs 4 a, b, & c of this Agreement, are not
applicable to any such technical information or other data if the same is:

(1)   in the public domain at the time of receipt or comes into the public
      domain thereafter through no act of the receiving Party in breach of any
      agreement with the disclosing Party, or
(2)   known to the receiving Party on a non-confidential basis prior to
      disclosure by the disclosing Party, or
(3)   disclosed with the prior written approval of the disclosing Party, or
(4)   independently developed by the receiving Party, or
(5)   lawfully disclosed to the receiving Party by a third party under
      conditions permitting such disclosure; or

e. UCF shall not present a paper or submit a journal or paper for publication,
issue a news release, public announcement, advertisement, or any other form of
publicity in connection with this Agreement without obtaining prior written
approval from LEI. In the event such approval is granted, any resulting form of
publicity shall give full consideration to the role and contributions of LEI. If
no action is taken by LEI within thirty (30) days after receiving written
submission of the information to be released by UCF and sent to LEI via Federal
Express, it shall be assumed that approval has been granted.

5.4 Pursuant to Florida Statute, Section 240.241, services which relate to
methods of manufacture or production, trade secrets, business transactions, or
proprietary information received, generated, ascertained, or discovered during
the course of services conducted by this Agreement, UCF and LEI shall be exempt
from the provisions of Florida Statute, Chapter 119, titled, "Public Records,"
except that both parties shall make available, upon request, the title and
description of the services, the name of UCF'S employee responsible for the
services, and the amount and source of funding provided for such services.

                                  Page 4 of 8
<PAGE>

Article 6.0 Patents and Copyrights License.

6.1 Title to any invention or discovery conceived or first reduced to practice
by LEI in the performance of the Agreement shall vest with LEI. Title to any
invention or discovery conceived or first reduced to practice by UCF in the
performance of this Agreement shall vest with UCF.

6.2 Title to any invention or discovery conceived or first reduced to practice
by LEI and UCF during the performance of the work under this Agreement shall be
jointly owned by UCF and LEI, and each party shall receive an interest in such
invention or discovery, and resulting foreign or U.S. patents/copyrights issued
thereon.

6.3 Patent applications and/or patents obtained hereunder on individually owned
inventions by either party or jointly owned inventions may be licensed by UCF or
LEI on appropriate terms outlined in a separate intellectual property licensing
agreement, which the licensing agreement will be in the form of an exhibit to
each Task Order. The royalty income earned on the licensing of patent
applications/patents hereunder, whether licensed by UCF or LEI shall be
negotiated and determined on a task by task basis.

Article 7.0 Limitations of Liability.

7.1 In no event shall UCF, its parent, subsidiaries, or affiliates and their
respective officers, be liable (in contract or in tort, including negligence, or
otherwise) to LEI for indirect, incidental or consequential damages, resulting
from UCF'S performance, nonperformance, or delay in performance of its
obligations under this Agreement.

7.2 In no event shall LEI, its parent, subsidiaries, or affiliates and their
respective officers, directors, agents and employees be liable (in contract or
in tort, including negligence, or otherwise) to UCF for indirect, incidental or
consequential damages, resulting from LEI'S performance, nonperformance or delay
in performance of its obligations under this Agreement.

7.3 The limitation of liability contained in section 7.1 & 7.2 shall not apply
to the extent that UCF and LEI are insured under policies of insurance
maintained by UCF and LEI under this Agreement.

Article 8.0 Suspension of Services.

8.1 In the event LEI elects to suspend the services under this Agreement, LEI
shall notify UCF, in writing, at least thirty (30) working days in advance of
the suspension period. UCF shall advise LEI of the costs to be incurred from the
planned suspension of the services. Any reimbursement shall be limited to UCF'S
reasonable costs incurred as a direct result of the suspension. Resumption of
services by UCF shall commence upon thirty (30) calendar days notice by LEI, if
such request is made within eighteen (18) months after suspension.

                                  Page 5 of 8
<PAGE>

Article 9.0 Force Majeure.

9.1 Performance of this Agreement by each party shall be pursued with due
diligence in all requirements hereof however, neither Party shall be liable to
the other for any loss or damages for delay or for nonperformance due to causes
not reasonably within its control. The party affected shall promptly notify the
other in writing of the nature, cause, date of commencement thereof, the
anticipated extent of such delay and whether it is anticipated that any
completion dates will be affected thereby.

9.2 In the event of any delay resulting from such causes and provided the
affected party has promptly notified the other and exercised due diligence as
provided in section 9.1, the time of performance of each of the parties
hereunder (including the payment of moneys) shall be extended for a time period
equal the period of such delay.

Article 10.0 Term and Termination.

10.1 The term of this Contract shall be from contract execution, with the
scheduled termination date being set to occur sixty (60) months after such
execution provided this Agreement has not been otherwise terminated. However,
the termination date of this Agreement may be extended on a contract annual
basis as agreed to by both parties, in writing as an amendment, with the same
formality as this Agreement.

10.2 LEI may, by written notice, terminate this Agreement in whole or in part if
UCF fails to:

      (i)   Perform the work under the contract within the time specified in
            this contract or any extension;
      (ii)  Prosecute the work so as to endanger performance of this contract;
            or
      (iii) Perform any of the other provisions of this contract.

LEI'S right to terminate this Agreement may be exercised if UCF does not cure
such failure within Ten (10) days (or more if authorized in writing by LEI)
after receipt of the written notice from LEI specifying the failure.

10.3 UCF may terminate this agreement for LEI's non-compliance with the
agreement at any time during the term of the agreement, with a thirty (30) day's
written notice.

10.4 Termination charges, if any shall include charges for services performed
prior to notice of termination and shall reflect the actual services performed
and costs actually incurred or funds actually obligated at the time the
termination is noticed.

                                  Page 6 of 8
<PAGE>

Article 11.0 Visits and Inspections.

11.1 Representatives of LEI shall have the right to visit the facilities of UCF
and witness the services being performed provided they make arrangements at
reasonable times, in advance of such visits. LEI'S representatives will comply
with all of UCF'S security requirements.

Article 12.0 Title.

12.1 Title to equipment purchased under this Agreement shall reside with UCF,
unless stated otherwise in writing under each Task Order; however, all such
equipment can be made available at LEI'S request for use on any Task Order
project contingent upon proper approval by LEI, and considering UCF'S current
use of such equipment on any then current project at such time of request.

Article 13.0 Compliance with Laws, Rules and Regulations.

13.1 UCF and LEI shall perform all services in accordance with all applicable
codes, laws, rules, regulations, orders and standards of Federal common law,
State, regional, local and municipal government agencies.

13.2 Both parties shall conform to the requirements of the Equal Employment
Opportunity Act.

Article 14.0 Assignment.

14.1 Neither this Agreement, nor the duties to be performed hereunder, shall be
subcontracted, assigned, delegated or otherwise disposed of by either Party
without the prior written consent of the other party.

Article 15.0 Non-Waiver.

15.1 No failure by either Party to insist upon strict performance of any of the
provisions hereof, nor either Parties failure or delay in exercising any rights
or remedies provided herein or by law, shall be deemed a waiver of any rights of
either party to insist upon strict performance hereof or of any of either
Party's rights or remedies under this contract or law, and shall not operate as
a waiver of any of the provisions hereof.

Article 16.0 Applicable Law.

16.1 The rights, obligations and remedies of the Parties as specified under this
Agreement shall be interpreted and governed in all respects by the laws of the
State of Florida.

                                  Page 7 of 8
<PAGE>

Article 17.0 Severability of Provisions.

17.1 Should any provision, portion or application thereof, of this Agreement be
determined by a court of competent jurisdiction to be illegal, unenforceable or
in conflict with any applicable law, the parties shall negotiate an equitable
adjustment and the validity and enforceability of the remaining provisions of
applications thereof, shall not be impaired.

Article 18.0 Order of Interpretation.

18.1 In the case of conflict between or among documents related to this
Agreement, the following order of precedent shall apply: (i) first Articles 1.0
through 20.2 of this Agreement, (ii) Task Order(s) issued against this
Agreement, then (iii) Exhibits, if any, to this Agreement.

Article 19.0 Effect of Section Headings.

19.1 Section headings appearing in this Agreement are inserted for convenience
of reference only and shall in no way be construed to be interpretations of the
text.

Article 20.0 Complete Agreement.

20.1 This Agreement is intended as the complete and exclusive statement of the
agreement between the parties. Parole or extrinsic evidence shall not be used to
vary or contradict the express terms of this Agreement, and recourse may not be
had to alleged prior dealings, usage of trade, course of dealing, or course of
performance to explain or supplement the express terms of this Agreement.

20.2 This Agreement shall not be amended or modified, and no waiver of any
provision shall be effective, unless set forth in a written instrument
authorized and executed with the same formality as this Agreement.

IN WITNESS WHEREOF, the Parties have caused this Agreement to be signed by their
duly authorized officers or representatives effective as of the date first
written below.

University of Central Florida                   Laser Energetics, Inc.

/s/ Douglas Backman                             /s/ Robert Battis
---------------------------------               --------------------------------
Douglas Backman, Interim Director               Mr. Robert Battis
Division of Sponsored Research                  President & CEO

Date: 12/20/95                                  Date: 12/21/95
     ----------------------------                    ---------------------------

                                  Page 8 of 8PATENT LICENSE AGREEMENT

                                TABLE OF CONTENTS

PREAMBLE TO LICENSE AGREEMENT

ARTICLES

I. ................................................................. DEFINITIONS
II. ............................................. IMPROVEMENTS AND CONSULTATIONS
III. ..................................................... LICENSES AND RELEASES
IV. ............................................ ROYALTIES, PAYMENTS AND RECORDS
V. ....................................... OBLIGATIONS OF LICENSEE/DUE DILIGENCE
VI. ......................................................... KEEPING OF RECORDS
VII. ............... GOVERNMENT CLEARANCE, PUBLICATION, OTHER USE, EXPORT DUTIES
VIII. ............................................. ENFORCEMENT AND INFRINGEMENT
IX. ....................................................... TERM AND TERMINATION
X. ...................................... TRANSFERABILITY OF RIGHTS AND LICENSES
XI. .............................................. DISCLAIMER OF PATENT WARRANTY
XII. ................................................................. INDEMNITY
XIII. ......................................................... NON USE OF NAMES
XIV. ................................................................. JUDGMENTS
XV. ............................................................ PATENT MARKINGS
XVI. ................................................... LIMITATION OF LIABIL1TY
XVII. ................................................. ATTORNEYS FEES AND COSTS
XVIII. ................................................................. NOTICES
XIX. .................................................................... WAIVER
XX. ..................................................................... TITLES
XXI. ................................................................. SEVERANCE
XXII. ......................................................... ENTIRE AGREEMENT
XXIII. ....................................................... SURVIVAL OF TERMS

<PAGE>

                                LICENSE AGREEMENT

PREAMBLE TO LICENSE AGREEMENT

      This license agreement goes into effect upon the completion of research
and development of Task Order #2, issued to University of Central Florida by
Laser Energetics, Inc. named "________ Solid-State _______ Laser at 193nm".

      This Agreement is made by and between the Research Foundation of the
University of Central Florida on and behalf of the University of Central
Florida, and having an address and place of business at 4000 Central Florida
Blvd., Orlando, Florida, (hereinafter "UCF") and Laser Energetics, Incorporated,
a Florida corporation having an office and place of business at, 4044
Quakerbridge Road, Mercerville, NJ 08619 (hereinafter "LICENSEE").

      WHEREAS, UCF and LET will be the owners of the future invention titled
"_________ Solid-State Laser at 193nm", and own all rights, title and interest
to Patent Rights, as hereinafter defined, pertaining to such invention; and
technical know-how is retained by Dr. Martin Richardson of the Laser Plasma
Laboratory (LPL) at the Center for Research and Education in Optics and Lasers
(CREOL).

      WHEREAS, UCF has the right to grant licenses to the foregoing invention,
and wishes to have the invention utilized in the public interest; and

      WHEREAS, UCF is willing to grant a license to LICENSEE to the invention
and related Patent Rights and Subject Technology, as hereinafter defined under
the same terms and conditions hereinafter set forth;

      NOW, THEREFORE, in consideration of the premises and mutual covenants of
this Agreement; the parties hereto agree as follows:

                                    ARTICLE I
                                   DEFINITIONS

For the purpose of this Agreement:

A. "Subject Technology", shall mean the invention entitled, "_______ Solid-State
__________ laser at 193nm" to be built as described in Task Order #2 attached to
this document and unpublished "know how" directly related to said inventions and
to Patent Rights, as herein defined, and all alterations or improvements to the
invention. Task Order #1 is attached as Appendix A. Task Order #2 is attached as
Appendix B.

B. "Patent Rights" shall mean any and all United States and foreign patent
applications now or hereafter filed with respect of the Subject Technology and
any patent now issued or hereafter issuing on any such patent applications, as
well as substitutes, continuations, divisions, continuations-in-part, or
reissues thereof.

C. "Licensed Product" shall mean any product, process or use thereof (a) which
utilizes the Subject Technology; (b) which is covered by an unexpired claim
contained in the Patent Rights in the country in which the Licensed Product(s)
is made, used, sold or transferred; (c) which is manufactured by using a process
which is covered in an unexpired claim contained in the Patent Rights in the
country in which the Licensed Product(s) is made, used, sold or transferred; or
(d) the use of which is covered in an unexpired claim contained in the Patent
Rights in the country in which the Licensed Product(s) are made, used, sold, or
transferred.

<PAGE>

D. "Technical Information" means information concerning methods, processes,
materials and other information useful in manufacturing, assembling and/or using
______ lasing devices.

E. "Gross Sales" shall mean LICENSEE's total invoiced billing for sales of
______ lasing devices. Licensed products shall be considered "sold" when
invoiced. No deductions shall be made for commissions paid to individuals or
employees of LICENSEE, nor the cost of collection.

F. "Field of Use" shall mean ________ lasing at a wavelength of 193 nm, and the
range of associated with the _______ system incorporating _______ and frequency
conversion to the UV of this laser.

G. "Territory" shall mean the entire world.

H. "Sales" shall mean any sale, transfer, lease, license, permission to use or
other transfer of right or possession or other conveyance by Licensee of
Licensed Product or Subject Technology.

                                   ARTICLE II
                          IMPROVEMENTS AND CONSULTATION

A. It is contemplated that UCF may, from time-to-time, make improvements to the
licensed products. Such improvements will be promptly disclosed to the Office of
Technology Transfer at UCF and LICENSEE will advise UCF within ninety (90) days
of such disclosure whether LICENSEE desires to incorporate such improvements
into the licensed products sold or otherwise disposed of by LICENSEE.

B. LICENSEE will maintain such improvements as confidential until advised
otherwise by UCF.

C. In the event that LICENSEE desires to incorporate such improvements, LICENSEE
will, at its own expense, file for patent protection on UCF's behalf of such
improvements in the United States and in any other countries in which the
licensed product is manufactured for LICENSEE.

D. All patents on improvements invented by UCF shall be assigned to UCF or to an
assignee designated by UCF. For any improvements for which LICENSEE files and
pays for at least a United States patent application, the royalty set forth in
Article IV shall not be increased.

E. If LICENSEE subsequently elects to incorporate such improvements on the
licensed product materials, but elects not to file for patent protection as
contemplated by paragraphs C above, the royalty rates set forth in Article IV
will be subject to re-negotiation and an equitable increase to reflect
development cost of such improvements and the costs associated with obtaining
patents thereon.

F. If LICENSEE or any sublicensees of LICENSEE develop improvements in Subject
Technology, LICENSEE agrees to submit such improvements to UCF for its review.

G. LICENSEE agrees to pay for all foreign filings and related patents filed on
Subject Technology.

H. LICENSEE, to the extent it has the right to do so, agrees to grant to UCF a
nonexclusive license under such patents to make, have made, ("shop rights") the
licensed products, incorporating such improvements for research purposes.

                                   ARTICLE III
                              LICENSES AND RELEASES

A. UCF hereby grants to LICENSEE and LICENSEE accepts from UCF, under the terms
and conditions herein specified, an exclusive license to make, have made, use
and sell Licensed Products, with the right to sublicense throughout the world,
on terms at least as restrictive as those provided herein. Such license

<PAGE>

is worldwide and shall remain in effect, on a country by country basis, for the
duration of this agreement. Notwithstanding the foregoing, LICENSEE's rights and
license shall be subject to the rights of the U.S. Government pursuant to any
funding agreement between UCF and the Government.

B. LICENSEE shall have the right to grant sub-licenses to Subject Technology. A
copy of each sub-license shall be provided to UCF. Should this Agreement be
terminated for any reason, LICENSEE agrees to assign all such sub-licenses
directly to UCF.

C. The license granted hereunder shall not be construed to confer any rights
upon LICENSEE by implication, estoppel or otherwise as to any technology not
part of the Patent Rights licensed hereunder in the specified field of use.

D. LICENSEE agrees that the licensed products leased or sold in the defined
territory shall be manufactured as much as possible in the United States.

                                   ARTICLE IV
                         ROYALTIES, PAYMENTS AND REPORTS

A. LICENSEE agrees to pay to The Research Foundation of the University of
Central Florida a royalty of 6% of Gross Sales of Licensed Products. This
royalty is to be distributed according to the policies of UCF.

B. LICENSEE agrees to make written reports of Net Sales to UCF within fifteen
(15) days after the last day of each six - month interval during the life of
this Agreement The first such report shall be due six months after the date of
this Agreement. The obligation to make these reports shall terminate on the
expiration date of this Agreement, except as to Sales sold or other dispositions
or manufacturing but not reported prior to such date of expiration. LICENSEE
shall make such reports even if there have been no Sales, or if no royalties are
due to UCF for the reporting period. Reports shall include but not be limited to
the following:

      (1) total invoiced billings for all Sales

      (2) total royalties due UCF

      (3) names and addresses of sublicensees.

C. Royalty payments are due and payable concurrently with reports of Sales.

D. In the event that any payment of royalties due from LICENSEE under this
Agreement is for any reason not paid when due, i.e., fifteen (15) days after the
end of each six month interval, LICENSEE shall pay to UCF interest on such
overdue payment during the period commencing fifteen (15) days from such due
date until the date that such overdue payment is actually made to UCF, the rate
of interest being equal to three percent (3%) above the highest commercial prime
rate of the Sun Trust, N.A., Alafaya/HWY. 50, Orlando, Florida in effect on the
date the payment first became due.

E. All payments made as a result of this Agreement shall be paid in United
States Dollars in Orlando, Florida, or at such other place as UCF may reasonably
designate consistent with the applicable controlling laws and regulations in any
foreign country. If any currency conversion shall be required in connection with
the payment of royalties hereunder, such conversion shall be made by using the
exchange rate prevailing at the Sun Trust, N.A., on the last business day of the
calendar quarterly reporting period to which such royalty payments relate.

                                    ARTICLE V
                             OBLIGATIONS OF LICENSEE
                                  DUE DILIGENCE

LICENSEE agrees to diligently pursue the development of the invention according
to the following due diligence requirements:

<PAGE>

A. In the event royalties payable to UCF under this Agreement for the calendar
year ending December 31, 1998, do not equal or exceed Three Thousand Dollars
($3,000.00), or if the royalties payable to UCF during the calendar year ending
December 31, 1999 do not equal or exceed Ten Thousand Dollars ($10,000.00), or
if the royalties payable to UCF during the calendar year ending December 31,
2000, or any subsequent year thereafter during the term of this Agreement do not
equal or exceed Twenty Thousand Dollars ($20,000.00), UCF shall have the right,
upon sixty (60) days notice, to discontinue the license granted in Article III.
LICENSEE may however, maintain the exclusive character of its license,
notwithstanding any such notice from UCF, if it shall, prior to expiration of
the sixty (60) day notice period, pay to UCF a sum which, when added to the
royalties payable for the year in question, totals the minimum amount due for
that year as set forth above. Failure of UCF to give the notice provided in
reference to any given year or years shall not constitute a waiver of the right
to give such notice in reference to any subsequent year.

B. Licensee agrees to use its best efforts to have the subject technology
cleared for marketing in those countries in which LICENSEE intends to sell
Licensed Products by responsible government agencies requiring such clearance.
LICENSEE agrees to concurrently file the necessary data which may be required
prior to approval. Should LICENSEE terminate this agreement, it agrees to assign
to its full interest and title in such market clearance application, including
all associated data to UCF at no cost to UCF.

C. Failure by LICENSEE to comply with the provisions of this agreement shall
result in UCF having the right to convert any exclusive license to a
non-exclusive license or to cancel the license upon sixty (60) days notice. This
would include a reversion of rights to all relevant materials, research
information and technology including patent rights, transferred to LICENSEE by
UCF.

                                   ARTICLE VI
                               KEEPING OF RECORDS

A. LICENSEE shall keep complete, true, and accurate books of accounts and other
records containing all particulars which may be necessary to ascertain and
verify properly such Sales. Upon UCF's request, but no less than one business
day, LICENSEE shall permit an independent Certified Public Accountant selected
by UCF (except one to whom LICENSEE has some reasonable objection) to have
access during ordinary business hours to such of LICENSEE's records as may be
necessary to determine, in respect of any three (3) month period ending not more
than five (5) years prior to the date of such request, the correctness of any
report made under this Agreement. Nothing herein shall be construed to limit the
authority of the State Comptroller or Auditor of Florida or any similar
official.

B. In the event that any examination or audit of conducted pursuant to this
Article V shall indicate an underpayment in royalties due UCF in an amount
greater than five percent (5%), LICENSEE agrees to reimburse UCF for any and all
expenses incurred by the approved accountant in conducting the examination or
audit.

                                   ARTICLE VII
           GOVERNMENT CLEARANCE, PUBLICATION, OTHER USE, EXPORT DUTIES

A. LICENSEE agrees that the right of publication of the Subject Technology shall
reside in the inventor and other staff of UCF. UCF shall use its best efforts to
provide a copy of each publication at the time of submission for pre-publication
review according to the procedure described in Article 5.3.e. of the Task Order
Research Agreement. Such review will be in no way construed as a right to
restrict such publication, unless the material provided to LICENSEE is
proprietary to LICENSEE as defined under Article 5.0, Proprietary Material,
Confidentiality, and Use of Data, of the Task Order Research Agreement.

<PAGE>

B. It is agreed that notwithstanding any provisions herein, UCF is free to use
the Subject Technology and Patent Rights for its own educational, teaching, and
research purposes without restriction and without payment of royalties or other
fees.

C. This Agreement is subject to, and LICENSEE will comply with, all of the
United States laws and regulations controlling the export of technical data,
laboratory prototypes, and other commodities and technology which may be
applicable.

D. LICENSEE shall be solely responsible for the payment and discharge of any
taxes or duties relating to any transaction of LICENSEE, its employees,
contractors, or agents, in connection with the manufacture, use, or sale in any
country of Licensed Product(s).

E. LICENSEE shall be solely responsible for obtaining all approvals, such as,
for example, Underwriters Laboratory (U.L.) approval for Licensed Products,
necessary or advisable for sale or use of licensed products in the United States
and throughout the world.

F. LICENSEE agrees to comply with all government laws and regulations in the
manufacture, sale and delivery of Licensed Products, including, but not limited
to, FCC regulations, Import/Export regulations and the antitrust laws of the
United States.

                                  ARTICLE VIII
                          ENFORCEMENT AND INFRINGEMENT

A. While and as long as its license under this Agreement remains exclusive,
LICENSEE is empowered:

      1)    to bring suit in its own name or, if required by law, jointly with
            UCF, at its own expense and on its own behalf; for infringement of
            the invention and/or Licensed Patents;

      2)    in any such suit, to enjoin infringement and to collect for its use,
            damages, profits and awards of whatever nature recoverable for such
            infringement and or civil action;

      3)    to settle any claim or suit for infringement of invention and/or
            Licensed Patents by granting the infringing party a sublicense under
            the provisions of Article III of this Agreement.

B. In the event UCF shall bring to the attention of LICENSEE any trade secret
and/or unlicensed infringement of the Licensed Patents, and LICENSEE shall not,
within six months:

      1)    secure cessation of the infringement or

      2)    enter suit against the infringer, or

      3)    provide UCF with evidence of the pendency of a bona fide negotiation
            for the acceptance by the infringer of a sublicense under the
            Licensed Patents.

The license herein granted to LICENSEE shall forthwith become null and void and
UCF shall have the right to sue for infringement at UCF's own expense and to
collect for its own use all damages, profits, and awards of whatever nature
recoverable for such infringement

C. LICENSEE shall indemnify and hold UCF harmless from any and all damages,
losses, liability, and costs resulting from a charge of infringement or civil
action attributable to the invention. This liability shall extend to
sublicensees in that the sublicensees shall indemnify and hold harmless UCF in
all infringement or civil action.

D. In any infringement suit instituted by either party to enforce the Patent
Rights, the other party hereto shall at the request and expense of the party
initiating such suit, cooperate in all respects and, to the extent possible,
have its employees testify when requested and make available relevant records,
papers, information, samples, specimens and the like.

<PAGE>

E. LICENSEE shall have the sole right in accordance with the terms and
provisions herein to sublicense any alleged infringer under the Patent Rights
for future infringements.

                                   ARTICLE IX
                              TERM AND TERMINATION

A. Unless previously terminated in accordance with the provision of this Article
IX, this Agreement shall terminate at midnight on December 31, 2008. The term of
this Agreement may be extended by LICENSEE upon written application to UCF at
least sixty (60) days prior to the expiration of this Agreement. Any extension
of this Agreement shall be subject to renegotiation of the royalty provision set
forth in Article IV hereof.

B. LICENSEE shall have the right to terminate the license granted herein under
the invention and License Patents, by written notice to UCF at least six (6)
months prior to the date such termination is to take effect, but other rights
granted herein to shall remain in full force and effect.

C. Should LICENSEE fail to pay UCF royalties due and payable hereunder, UCF
shall have the right to terminate this Agreement on thirty (30) days notice,
unless LICENSEE shall pay UCF, within the thirty (30) day period, all such
royalties and interest due and payable. Upon the expiration of the thirty (30)
day period, if LICENSEE shall not have paid all such royalties and interest due
and payable, the rights, privileges and license granted hereunder shall
terminate. LICENSEE may terminate this Agreement by giving UCF written notice at
least ninety (90) days prior to such termination, and thereupon terminate the
manufacture, use, or sale of Licensed Products

D. Any termination of this Agreement hereunder shall not relieve LICENSEE from
its obligation under Article IV hereof to make a terminal report or from its
liability for payment of royalties on Licensed Products sold or otherwise
disposed of hereunder prior to the date of such termination, and shall not
prejudice the right of UCF to recover any royalty or interest due or accrued at
the time of such termination and shall not prejudice any cause of action or
claim of UCF accrued or to accrue on account of any breach or default by
LICENSEE.

E. Any termination of this Agreement hereunder shall not prejudice the right of
UCF to conduct a final audit of the books and records of LICENSEE in accordance
with the provisions of Article VI hereof.

F. In the event an order for relief is entered against LICENSEE under the
Federal Bankruptcy Code, or an order appointing a receiver for substantially all
of LICENSEE's assets is entered by a court of competent jurisdiction, or
LICENSEE makes an assignment for the benefit of creditors, or a levy of
execution is made upon substantially all of the assets of LICENSEE and such levy
is not quashed or dismissed within thirty (30) days, this Agreement shall
automatically terminate effective on the date of such order or assignment or, in
the case of such levy, the expiration of such thirty day period, provided,
however, that such termination shall no way impair or prejudice any right of
remedy that UCF might have under this Agreement

G. Either party's ability to cure a breach will apply only to the first two (2)
breaches properly noticed under the terms of this agreement, regardless of the
nature of those breaches. Any subsequent breach by that party will entitle the
other party to terminate this agreement upon proper notice.

                                    ARTICLE X
                     TRANSFERABILITY OF RIGHTS AND LICENSES

A. The obligations of LICENSEE hereunder, including the obligations to make
reports and pay royalties, shall run in favor of the successors, assignees, or
other legal representatives of UCF.

<PAGE>

B. LICENSEE rights under this Agreement and the license herein granted shall
pass to any receiver for the benefit of the creditors LICENSEE and to any
receiver of its assets, or to any person or corporation succeeding to its entire
business and goodwill in licensed products as the result of sale, consolidation,
reorganization, or otherwise, provided any such assignee, receiver, person, or
corporation shall without delay, accept in writing the provisions of this
Agreement and agree to become in all respects bound thereby in the place and
stead of LICENSEE, but shall not otherwise be transferred without written
consent of UCF.

                                   ARTICLE XI
                          DISCLAIMER OF PATENT WARRANTY

A. UCF does not warrant that any invention which may be the subject of a patent
application licensed hereunder will be patentable.

B. Nothing contained in this Agreement shall be construed as a warranty or
representation that the use of Technical Information or any inventions of any
patent applications or patents licensed hereunder will be free from infringement
of patents of third parties.

C. Nothing contained in this Agreement shall be construed as an obligation of
UCF to bring or to prosecute actions or suits against third parties for
infringement of any patent, or as an obligation by UCF to defend any actions
brought by any third party(s) alleging infringement of or claims of damages in
respect to any patent of such third party(s).

D. In the event LICENSEE should be required to defend itself against any
infringement claims, actions or suits of any third party(s) as a consequence of
LICENSEE use of any Technical Information furnished by UCF hereunder, UCF shall
provide at LICENSEE request up to ten (10) man-days of UCF's time for
consultation with UCF's technical and patent experts at LICENSEE option in
respect to each infringement claim, action or suit in which LICENSEE may become
involved during the life of this Agreement

E. Such consultation shall be without additional charge to LICENSEE except for
payment of any travel and living expenses incurred by UCF in attending any
meeting or consultation at the request of LICENSEE.

F. UCF MAKES NO REPRESENTATIONS AND EXTENDS NO WARRANTIES OF ANY KIND, EITHER
EXPRESSED OR IMPLIED, INCLUDING, BUT NOT LIMITED TO WARRANTIES OF
MERCHANTABRJ1TY AND FITNESS FOR A PARTICULAR PURPOSE AND VALIDITY OF PATENT
RIGHTS CLAIMS ISSUED OR PENDING. FURTHER, UCF MAKES NO REPRESENTATIONS AND
EXTENDS NO WARRANTIES OF ANY KIND, EITHER EXPRESSED OR IMPLIED, THAT THE USE OF
THE INVENTION WILL NOT INFRINGE ANY PATENT OR OTHER PROPRIETARY RIGHT OF A THIRD
PARTY.

                                   ARTICLE XII
                                    INDEMNITY

A. LICENSEE shall indemnify, defend and hold UCF, its trustees, officers,
employees and affiliates, harmless against all claims and expenses, including
legal expenses and reasonable attorneys' fees, arising out of the death or
injury to any person or persons or out of any damage to property and against any
other claim, proceeding, demand, expense and liability of any kind whatsoever
resulting from utilization of the Patent Rights in the production, manufacture,
sales, use, lease, consumption or advertisement of the Licensed Products by
LICENSEE and its sub-licensees or arising from any obligations of LICENSEE
hereunder, except for any claims or expenses arising out of the negligence or
willful misconduct of UCF or its officers, agents or employees. The parties
agree that UCF's liability shall be subject to the limitations defined in
Florida Statutes 95.11, 111.07, 607.0850, 607.1621, 608.404, 608.4363, 768.28,
768.30.

<PAGE>

B. UCF shall have no obligation, expressed or implied, to supervise, monitor,
review, or otherwise assume responsibility for the production, manufacture,
testing, marketing, or sale of any Licensed Product

C. UCF shall have no liability whatsoever related to LICENSEE or any third party
activities for or on account of any injury, loss, or damage, of any kind or
nature, sustained by, or any damage assessed or asserted against, or any other
liability incurred by or imposed upon LICENSEE or any other person or entity,
arising out of or in connection with or resulting from:

      (1) the production, use or sale of any Licensed Product

      (2) the use of any Subject Technology

      (3) any advertising or other promotional activities with respect to any of
          the foregoing

                                  ARTICLE XIII
                                NON-USE OF NAMES

A. LICENSEE shall not use the name of UCF, or any trademark, trade device,
service mark, symbol, or any abbreviation, contraction, or simulation thereof,
owned by UCF, nor the names of any office employees, or any adaptation thereof,
in any advertising promotional, or sales literature without prior written
consent obtained from an authorized officer of UCF in each case.

B. LICENSEE may state that it is licensed by UCF under one or more of the
patents and/or patent applications comprising the Patent Rights. Failure by
LICENSEE to comply with this restriction shall be deemed cured if the offending
use is terminated within ninety (90) days of LICENSEE receipt of a written
notice from UCF.

                                   ARTICLE XIV
                                    JUDGMENTS

A. If in any proceeding in which the validity or infringement of any of the
aforesaid licensed claims is in issue, a judgment or decree is entered which
becomes not further reviewable through the exhaustion of all permissible
applications for rehearing or review by a superior tribunal (hereinafter
referred to as an "irrevocable judgment"), the construction placed upon any such
claim by any such irrevocable judgment shall be thereafter followed not only as
to such claim but as to all claims to which such construction applies, with
respect to acts occurring thereafter; and, if such irrevocable judgment holds
any claim invalid, LICENSEE shall be relieved thereafter from including in its
reports hereunder licensed products sold thereafter where there is royalty
liability only by reason of such claim or any other claim in which such
irrevocable judgment is applicable, and from the performance of those other acts
which may be required by this Agreement only because of such claim; the decision
of the higher tribunal shall be followed until the less favorable decision has
been followed by the irrevocable judgment of another tribunal of at least equal
dignity.

                                   ARTICLE XV
                                 PATENT MARKINGS

A. LICENSEE agrees to mark all licensed products sold or otherwise disposed of
by it under this Agreement with the words "Patent".

                                   ARTICLE XVI
                             LIMITATION OF LIABILITY

A. UCF's liability on any claim of any kind, including negligence, for any loss,
damage or injury allegedly sustained by LICENSEE or any customer of LICENSEE
arising out of, connected with, or resulting from this Agreement and the
delivery of licensed products or components thereof to LICENSEE by UCF or from
the design, manufacture, sale, delivery or resale of such licensed products or
components thereof shall in no case exceed the price allocable to the licensed
products or component thereof which

<PAGE>

gives rise to the claim and shall terminate one (1) year after delivery of the
licensed products or component thereof from UCF to LICENSEE.

B. LICENSEE agrees to hold UCF harmless against any claim of any kind, including
negligence, for any loss, damage or injury allegedly sustained by LICENSEE or
any user or purchaser of licensed products manufactured by LICENSEE or on behalf
LICENSEE or by any licensee of LICENSEE, arising out of, connected with, or
resulting from this Agreement, or from the design, manufacture, sale, operation
or use of licensed products or components thereof.

                                  ARTICLE XVII
                             ATTORNEY FEES AND COSTS

A. In any action brought to enforce any provision of this Agreement, the
prevailing party shall be entitled to reimbursement of all attorney fees and
costs associated with such action. Such reimbursement shall not apply to any
action or portion thereof directed solely to the issue of validity of one or
more claims of the Licensed Patents, except that the court hearing such action
shall not be precluded from awarding attorney fees and costs as it deems
appropriate.

                                  ARTICLE XVII
                                     NOTICES

A. All notices provided for in this Agreement shall be given in writing and
shall be effective when either (1) served by personal delivery or (2) deposited,
postage prepaid, as Registered or Certified Mail addressed to the parties
respectively at the following addresses:

On behalf of LICENSEE:
Mr. Robert Battis
Laser Energetics, Inc.
4404 Quakerbridge Road
Mercerville, NJ 08619

As to the University of Central Florida:
Office of Technology Transfer, Research and Graduate Studies
4000 Central Florida Boulevard ADM-243
Orlando, Florida 32816-0150

or to other such address or addresses as LICENSEE or UCF respectively, may later
fix by written notice to the other.

                                   ARTICLE XIX
                                     WAIVER

A. The failure of a party in any instance to insist upon the strict performance
of the terms of this Agreement shall not be construed to be a waiver or
relinquishment of any of the terms of this Agreement, either at the time of the
party's failure to insist upon strict performance or at any time in the future,
and such term or terms shall continue in full force and effect.

                                   ARTICLE XX
                                     TITLES

A. All titles and article headings contained in this Agreement are inserted only
as a matter of convenience and reference. They do not define, limit, extend, or
describe the scope of this Agreement or the intent of any of its provisions.

<PAGE>

                                   ARTICLE XXI
                                    SEVERANCE

A. Each clause of this Agreement is a distinct and severable clause and if any
clause is deemed illegal, void, or unenforceable, the validity, legality, or
enforceability of any other clause or portion of this Agreement will not be
affected thereby.

                                  ARTICLE XXII
                                ENTIRE AGREEMENT

A. This instrument contains the entire and only agreement between the parties,
and it supersedes all preexisting agreements between such parties.

B. This agreement merges all prior discussions between the parties and neither
party shall be bound by conditions, definitions, warranties, understandings, or
representations regarding the invention unless otherwise provided in this
agreement or as otherwise provided later in writing and signed by the authorized
agents of the parties.

C. This agreement can be modified or amended only by written agreement duly
signed by persons authorized to sign agreements on behalf of the parties.

                                  ARTICLE XXIII
                                SURVIVAL OF TERMS

A. The provisions of Articles I, II, VII, X, XI, XII, XIII, XIV, XVI, XVII,
XVIII, XIX and XXIII shall survive the expiration or termination of this
Agreement

      This Agreement shall be interpreted in accordance with the laws of the
State of Florida.

IN WITNESS WHEREOF, the parties hereto have caused their respective corporate
seals to be hereunto affixed and duly attested and these presents to be signed
by their respective duly authorized officers.

ATTEST:

/s/ Diane M. Jacobs                           By: Diane M. Jacobs, Ph.D.
----------------------------------            Title: Vice President for Research
                                                     and Graduate Studies
                                              Date:

ATTEST:

/s/ Robert Battis                             By: Robert Battis
----------------------------------            Title: President
          9-5-1997                                   Laser Energetics, Inc.
        Sept 5, 1997                          Date:

<PAGE>

                                  TASK ORDER #1

               Issued pursuant to the Task Order Agreement between
                             Laser Energetics, Inc.
                                       and
                        the University of Central Florida
                                  on behalf of
           the Center for Research and Education in Optics and Lasers

This Task Order is Issued pursuant to the terms and conditions of the referenced
Task Order Agreement dated December 18, 1995 and directs the University of
Central Florida in the performance of the order in accordance with the
additional provisions listed below.

Objective

the objective of this Task Order, to be performed under the conditions of the
Contract Agreement between the University of Central Florida and Laser
Energetics, Inc., is the development of a prototype 193nm laser system. This
will be a flashlamp-pumped ____________ and/or ___________________
oscillator-amplifier system incorporating fourth harmonic conversion to the UV.
The anticipated output pulse energy in the UV at 193 nm is expected to be
_______ mJ, with a pulse duration of _______ ns, and a repetition range of
________ Hz.

Summary of Laser System

The laser system will be developed by Martin Richardson's Laser Development
Group in the LPL at CREOL. The laser system is expected to generate Q-switched
laser pulses at ____ nm with energies of _______ mJ, with a ________ ns pulse
duration of ________ mJ at a repetition rate of ___ Hz. The laser system will
most probably use _________ and/or __________ as a laser medium. The final
system will incorporate a second and fourth harmonic conversion system, allowing
conversion to 193nm with an expected overall conversion of __________ to the UV.
This development laser system will be built suitable for demonstration field
tests, but as an enclosed breadboard construction, mounted on a portable table
with wheels, and connected by an umbilical connection to a separate unit
containing the electrical excitation, control and cooling systems. The final
turnkey operable system will become the property of Laser Energetics, Inc.

Conditions

1. It is understood that there is an element of risk in this Task Order. No
solid-state laser having the parameters listed above has so far been developed.
Output performance levels of this order have not yet been achieved with any
________ and/or _________ laser systems.

2. This laser will be based on new laser materials, _____________ and/or
_____________ rods. Using ______________, it is understood that this material is
currently under development and is not in production. Although its basic
material properties make it suitable for the laser outlined in this project, it
is understood that issues of crystal quality, particularly scatter losses,
remain to be improved, and may impact the objectives of this task order.

<PAGE>

3. The laser system described in this task order will, if operating at its
stated performance levels, approach the performance limits of UV-transmitting
materials. It is understood that there is therefore an element of risk to the
optical components used in and with this laser system.

4. Laser Energetics, Inc. will be liable only for the estimated cost of this
project.

Duration of Task Order

The duration of this development is budgeted for 12 months. It is hoped that the
objectives of this Project can be accomplished in less than 12 months. However,
the additional time has been included to allow for unforeseen difficulties and
the effect of a laboratory move within CREOL.

Financial Payment

LEI will provide the finance to support this development. These are summarized
on the associated budget below. The total budgeted cost is $115,165. The optimum
timeline for these funds to be allocated to this project are $80,000 at project
commencement, $20,000 after 3 months, and the remainder after the project is
complete and demonstrated (within the remaining 6 months).

Proprietary Information and Intellectual Property

All conditions on proprietary information and intellectual Property relating to
this project shall be those covered by the Contract Agreement between the
University of Central Florida and Laser Energetics, Inc., and in compliance with
the Laser Energetics, Inc. Confidential Non-disclosure Agreement which will be
carried out separately.

Budget

Wages, Salary, and Benefits
Research development Engineer               $36,000
Total (W, S & B)                                                         $36,000

Expenses
   Mirrors, mounts, etc.                                  $7,000
   Electrical Components                                  $8,000
Total other expenses                                                     $15,000
Total Indirect costs (41.5%)                                             $21,165
Equipment
   Laser rods                                             $20,000
   Laser heads                                            $8,000
   Polarizing optics                                      $3,000
   Cooling system                                         $3,000
   Pockels cell system                                    $4,000
   Conversion Crystal system                              $5,000
Total equipment                                                          $43,000

Total                                                                   $115,165

                                                          LASER ENERGETICS, INC.
                                                          CONFIDENTIAL
                                                          DATE: 12-21-95
                                                                         /s/ RDB

                                   page 2 of 3
<PAGE>

Goods to be delivered by UCF/CREOL and Dr. Martin Richardson's lab are as
follows:

1. Prototype portable turnkey laser system.

2. Laser to lase at 193nm, with ~50 mJ energy output, ~30ns pulse duration and
1-10Hz repetition rate.

3. Laser delivered should incorporate either __________ and/or ________ as the
active medium solid state rod.

4. Operation instructions should be delivered in booklet format.

5. Complete technical details of system including bill of materials as well as
all vendors who supplied components should be in booklet format.

6. All electrical/mechanical schematics should be included, dated and signed.

IN WITNESS WHEREOF, the Parties have caused this Agreement to be signed by their
duly authorized officers or representatives effective as of the date first
written below.

University of Central Florida           Laser Energetics, Inc.

/s/ Douglas Backman                     /s/ Robert D. Battis
---------------------------------       ----------------------------------------
Douglas Backman, Interim Director       Mr. Robert Battis
Division of Sponsored Research          President & CEO

Date: 12/20/95                          Date: 12/21/95
      ---------------------------             ----------------------------------

/s/ Martin Richardson
---------------------------------
Professor Martin Richardson
LPL, CREOL

Date: 12/22/95
      ---------------------------

                                                          LASER ENERGETICS, INC.
                                                          CONFIDENTIAL
                                                          DATE: 12-21-95
                                                                         /s/ RDB

                                  page 3 of 3
<PAGE>

TUNABLE SOLID STATE                                               LASER AT 193nm

                                  TASK ORDER #2

               Issued pursuant to the Task Order Agreement between
                             Laser Energetics, Inc.
                                       and
                        the University of Central Florida
                                  on behalf of
           the Center for Research and Education in Optics and Lasers

This Task Order is issued pursuant to the terms and conditions of the referenced
Task Order Agreement dated May 5, 1997 and directs the University of Central
Florida in the performance of the order in accordance with the additional
provisions listed below.

Objective

The objective of this Task Order, to be performed under the conditions of the
Contract Agreement between the University of Central Florida and Laser
Energetics, Inc., is the development of a prototype 193mn laser system. This
will be a flashlamp-purnped ____________ oscillator-amplifier system
incorporating _______________ and _________ to the UV. The anticipated output
pulse energy in the UV at 193nm is expected to be _____ mJ, with a pulse
duration of __________ ns, and a repetition range of ____________ Hz. This
objective will be accomplished by using the laser owned by Laser Energetics,
Inc.(LEI), that was built by Laser Plasma Laboratory (LPL) under Task Order #1.

Summary of Laser System

The laser system will be developed by Martin Richardson's Laser Development
Group in the LPL at CREOL. The laser system is expected to generate Q-switched
laser pulses at _______nm with energies of ______ mJ, with a ___________ ns
pulse. duration at a repetition rate of ____ Hz. The laser system will most
probably use ________ as a laser medium. The final system will incorporate a
___________ and _________________ system, allowing conversion to 193nm with an
expected overall conversion of ________ to the UV. This development laser system
will be built suitable for demonstration field tests, but as an enclosed
breadboard construction, mounted on a portable table with wheels, and connected
by an umbilical connection to a separate unit containing the electrical
excitation, control and cooling systems. The final turnkey operable system will
become the property of Laser Energetics, Inc.

Conditions

1. Laser Energetics, Inc. agrees to allow LPL to use the laser built on Task
Order #1 to complete Task Order #2.

2. It is understood that there is an element of risk in this Task Order. No
solid-state laser having the parameters listed above has so far been developed.
Output performance levels of this order have not yet been achieved with any
Alexandrite laser system.

3. The laser system described in this task order will, if operating at its
stated performance levels, approach the performance limits of UV-transmitting
materials. It is understood that there is therefore an element of risk to the
optical components used in and with this laser system.

4. Laser Energetics, Inc. will be liable only for the estimated cost of this
project.

<PAGE>

Duration of Task Order

The duration of this development is budgeted for 6 months. It is hoped that the
objectives of this Project can be accomplished in less than 6 months. However,
the additional time has been included to allow for unforeseen difficulties and
the effect of a laboratory move within CREOL.

Financial Payment

LEI will provide the finance to support this development. These are summarized
on the associated budget below. The total budgeted cost is $30,000.

Proprietary Information and Intellectual Property

All conditions on proprietary information and intellectual Property relating to
this project shall be those covered by the Contract Agreement between the
University of Central Florida and Laser Energetics, Inc., and in compliance with
the Laser Energetics, Inc. Confidential Non-disclosure Agreement which will be
carried out separately.

Budget for Task Order #2

Wages, Salary and Benefits
1 Graduate Student @ $15,000/yr                $ 7,500
Total(W, S & B)                                                   $7,500

Expenses
 Mirrors, mounts, etc.                         $ 4,500
 Electrical Components                         $ 2,184
Total other expenses                                             $14,184
Total Indirect Costs (41.5%)                                     $ 5,816
Equipment
 Laser rods                                    $10,000

Total equipment                                                  $10,000

TOTAL                                                            $30,000

*Note: This item has already been paid for by an add-on payment to Task Order
#1.

Total Cost

The laser developed under Task Order #2 therefore will have a total cost
comprising the costs of Task Order #1 ($115,165) and Task Order #2 ($30,000) for
a total cost of $145,165.

<PAGE>

                                 REVISED BUDGET

Budget for Task Order #2

Wages, Salary and Benefits
1 Graduate Student                            $7,479
Fringe Benefits @ .28%                           521
Total (W, S, & B)                                                 $7,500

Expenses
     Mirrors, mounts, etc.                    $4,302
      Electrical Components                   $2,184
Total expenses                                                    $6,486
Total Direct Costs                                               $13,986
Total Indirect Costs @ 43%                        $0              $6,014
Equipment
  Laser rod*                                 $10,000

Total Equipment                                                  $10,000

TOTAL                                                            $30,000

* Note: This item has already been paid for by an add-payment to Task Order # 1

Total Cost

The laser developed under Task Order #2 therefore will have a total cost
comprising the costs of Task Order #1 (5115.165) and Task Order #2 ($30,000) for
a total cost of $145,165.

<PAGE>

Goods to be delivered to UCF/CREOL and Dr. Martin Richardson's lab are as
follows:

1. Prototype portable turnkey laser system.

2. Laser to lase at 193nm, with ____ mJ energy output, ___ ns pulse duration and
______ Hz repetition rate.

3. Laser delivered should incorporate ________ as the active medium solid state
rod.

4. Operation instructions should be delivered in booklet format.

5. Complete technical details of system including bill of materials as well as
all vendors who supplied components should be in booklet format

6. All electrical/mechanical schematics should be included, dated and signed.

IN WITNESS WHEREOF, the Parties have caused this Agreement to be signed by their
duly authorized officers of representatives effective as of the date first
written below.

University of Central Florida           Laser Energetics, Inc.

/s/ Barbara Piffel                      /s/ Robert D. Battis
---------------------------------       ----------------------------------------
Barbara Piffel, Director                Mr. Robert Battis
Division of Sponsored Research          President & CEO

Date: 10/2/97                          Date:  9-5-97
      ---------------------------             ----------------------------------

/s/ Martin Richardson
---------------------------------
Professor Martin Richardson
LPL, CREOL

Date: 9-5-97
      ---------------------------

<PAGE>

                                 AMENDMENT NO. 1

                              TO THE TASK ORDER #2
                                     BETWEEN
                        THE UNIVERSITY OF CENTRAL FLORIDA
                                       AND
                             LASER ENERGETICS, INC.

This amendment to the original Contract made and entered into the 21st day of
December 1995, by and between the University of Central Florida and Laser
Energetics, Inc.

WITNESSETH that it is a bilateral change by and between the parties hereto in
consideration of the mutual covenants and Article 20 Complete Agreement to
delete the original proposed budget and replace with the attached, revised
budget and to delete paragraph 1 of Task Order No. 2 and replace with the
following revised paragraph:

This Task Order is issued pursuant to the terms and conditions of the referenced
Task Order Agreement dated December 21, 1995 and direct the University of
Central Florida in the performance of the order in accordance with the
additional provisions listed below.

University of Central Florida           Laser Energetics, Inc.

/s/ Barbara Piffel                      /s/ Robert D. Battis
---------------------------------       ----------------------------------------
Barbara Piffel                          Robert  D. Battis
Director

Date: 97/10/28                          Date: DECEMBER 4, 1997
      ---------------------------             ----------------------------------

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00103-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00103-of-00352.parquet"}]]