Document:

AMENDED, RESTATED AND RENEWED PROMISSORY NOTE

$73,601.00                                                   As of June 30, 2001

FOR VALUE RECEIVED, the undersigned, and if more than one, each of them jointly
and severally ("Borrower") promises to pay to the order of MARC DWORKIN
(together with any subsequent holder of this Note, hereinafter "Creditor") at
c/o Quartermane Capital Ltd., 39680 Bainbridge Road, Solon, Ohio 44139,
Attention: Marc Dworkin, or at such other place as Creditor may from time to
time designate, the principal sum of SEVENTY-THREE THOUSAND SIX HUNDRED ONE AND
NO/100 DOLLARS ($73,601.00) or such sum as may be advanced and outstanding from
time to time, with interest on the unpaid principal balance at the rate and on
the terms provided in this Amended, Restated and Renewed Promissory Note
(including all renewals, extensions or modifications hereto, this "Note").
Borrower has executed certain documents in connection with the loan evidenced by
this Note ("Loan") including that certain Forbearance Agreement ("Agreement")
dated September ___, 2004 made by Borrower in favor of Creditor and certain
related parties. Capitalized terms not defined herein shall have the meanings
given to them in the Agreement.

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

      This Note restates, amends, and renews that certain promissory note dated
August 1, 1999 ("Original Promissory Note"), made by Borrower payable to the
order of Creditor evidencing an original principal amount of $73,601.00, of
which, as of March 31, 2004, $73,601.00 of principal and $52,257.00 in accrued
and unpaid interest is outstanding. It is the intention of the Borrower and
Creditor that while this Note renews, amends, replaces and supersedes the
Original Promissory Note, it is not in payment or satisfaction of the Original
Promissory Note, but rather is the substitution of one evidence of debt for
another without any intent to extinguish the old. Should there be any conflict
between any of the terms of the Original Promissory Note and the terms of this
Note, the terms of this Note shall control. The Original Promissory Note is
attached hereto as Exhibit A and shall only be negotiated with this Note.

      Interest shall be charged on the outstanding principal balance from the
date hereof until the full amount of principal due hereunder has been paid at a
rate of Fifteen Percent (15.00%) per annum ("Note Rate"). Interest shall be
calculated daily on the basis of the actual number of days elapsed over a 360
day year.

      Monthly payments of principal and interest in the sum of $1,000.00 shall
be due and payable beginning on June 1, 2004 and continuing on the first day of
each month thereafter, through and including April 1, 2005. In addition to the
foregoing, Borrower hereby agrees to pay to Creditor, promptly upon receipt and
in any event no later than December 10, 2004, such Creditor's Proportionate
Share of the proceeds of Borrower's sale of 2003 operating losses ("TP
Prepayment") pursuant to the State of New Jersey's Business Tax Benefit
Certificate Transfer Program, established by Title 34:1B-7.42a, New Jersey
Statutes ("Program"). For purposes of the preceding sentence, "Proportionate
Share" means the proportion which the outstanding principal balance of this Note
bears to the total aggregate outstanding principal balances of all of the
Amended Notes, multiplied by the total proceeds of Borrower's sale of 2003
operating losses pursuant to the Program. The entire unpaid principal amount
hereof, together with accrued and unpaid interest thereon and all other amounts
payable hereunder shall, at the option of

<PAGE>

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

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

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

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

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

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

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

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

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

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

                                       2
<PAGE>

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

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

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

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

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

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<PAGE>

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

Borrower's Address:                          BORROWER:

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

                                                            [SEAL]

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

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

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

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

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

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<PAGE>

                                    EXHIBIT A

                            ORIGINAL PROMISSORY NOTE

                                 (see attached)

                                       5
<PAGE>

                                   SCHEDULE A

                          DESCRIPTION OF AMENDED NOTES

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

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

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

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

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

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

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

                             SECURED PROMISSORY NOTE

US $1,099,718.00                                effective as of October 29, 2004

      FOR VALUE RECEIVED, the undersigned, Laser Energetics, Inc., a Florida
corporation (the "Obligor"), hereby promises to pay to the order of Arisawa
Manufacturing Co., Ltd., a Japanese corporation, or its assigns (as the case may
be, the "Holder"), the principal sum of US One Million Ninety-Nine Thousand
Seven Hundred Eighteen Dollars ($1,099,718.00), with interest on the outstanding
principal amount at the rate of eight percent (8%), per annum commencing on the
date of this Note, payable as set forth below.

      Payments; Security. At any time after eighteen (18) months after the date
hereof, all principal and accrued interest due hereunder shall be payable on
demand by the Holder (the "Maturity Date"). In the event that any payment to be
made hereunder shall be or become due on a Saturday, Sunday or any other day
which is a legal bank holiday under the laws of the State of New York, such
payment shall be or become due on the next succeeding business day. This Note
shall be secured by that certain Security Agreement between the Obligor and the
Holder dated the date hereof (the "Security Agreement") pursuant to which
Obligor grants to Holder a security interest, second in priority only to a lien
filed by Commerce Bank to perfect a security interest granted to the Small
Business Administration, in the following:

all inventory, work-in-progress, raw materials, equipment, accounts (including
but not limited to all health-care-insurance receivables), chattel paper,
instruments (including but not limited to all promissory notes),
letter-of-credit rights, letters of credit documents, deposit accounts,
investment property, money, other rights to payment and performance, and general
intangibles (including but not limited to all software and all payment
intangibles); and oil, gas and other minerals before extraction; all oil, gas,
other minerals and accounts constituting as-extracted collateral; all fixtures;
all timber to be cut; all attachments, accessions, accessories, fittings,
increases, tools, parts, repairs, supplies, and commingled goods relating to the
foregoing property, and all additions, replacements of and substitutions for all
or any part of the foregoing property, all insurance refunds relating to the
foregoing property; all good will relating to the foregoing property; all
records and data and embedded software relating to the foregoing property; and
all equipment, inventory and software to utilize, create, maintain and process
any such records and data on electronic media; and all supporting obligations
relating to the foregoing property; all whether now existing or hereafter
arising, whether now owned or hereafter acquired or whether now or hereafter
subject to any rights in the foregoing property; and all products and proceeds
(including but not limited to all insurance payments) of or relating to the
foregoing property (the "Business Assets"), and

all letters patent of the United States, all right, title and interest therein
and thereto, and all registrations and recordings thereof, which are described

<PAGE>

in Schedule 1(b) annexed hereto and made a part hereof, all reissues,
continuations, continuations-in-part or extensions thereof and all licenses
thereof, and all products and proceeds of or relating to the foregoing property
(the "Patents") (the Business Assets and the Patents are referred to
collectively as the "Collateral").

      Interest. The Obligor promises to pay to the order of the Holder cash
interest on the principal amount hereof at a rate per annum equal to eight
percent (8%), which interest shall be payable at such time as the principal is
due hereunder. Interest shall be calculated on the basis of a year of 365 days
and for the number of days actually elapsed. All payments shall be applied first
to accrued interest and thereafter to principal. The payments of principal and
interest hereunder shall be made by wire transfer pursuant to wire transfer
instructions provided by Holder on or before the Maturity Date in currency of
the United States of America which at the time of payment shall be legal tender
therein for the payment of public and private debts. In the case of a default in
payment of the amount due on the Maturity Date, the amount due shall bear
interest at a rate of eleven percent (11%) per annum, which shall accrue from
the date of such default to the date the payment of such amount has been made or
duly provided for. Interest on any overdue principal amount shall be payable on
demand. Nothing in this Note shall require the Obligor to pay interest at a rate
exceeding the maximum amount permitted by applicable law to be charged by Holder
(the "Maximum Rate"). If the amount of interest payable for the account of
Holder would exceed the Maximum Rate, the amount of interest payable for its
account shall automatically be reduced to the Maximum Rate.

      Prepayment. The Obligor shall not have the right to prepay the principal
hereof in whole or in part.

      No Waiver. No failure or delay by the Holder in exercising any right,
power or privilege under this Note shall operate as a waiver thereof nor shall
any single or partial exercise thereof preclude any other or further exercise
thereof or the exercise of any other right, power or privilege. The rights and
remedies herein provided shall be cumulative and not exclusive of any rights or
remedies provided by law. No course of dealing between the Obligor and the
Holder shall operate as a waiver of any rights by the Holder.

      Waiver of Presentment and Notice of Dishonor. The Obligor and all
endorsers, guarantors and other parties that may be liable under this Note
hereby waive presentment, dishonor, demand, protest and notice of presentment,
notice of protest and notice of dishonor of any of the obligations created under
this Note and each and every notice of any kind in connection with the delivery,
acceptance, performance and enforcement of this Note, and, to the fullest extent
permitted by law, all rights to assert any statute of limitations to an action
hereunder.

      Place of Payment. All payments of principal of this Note and the interest
due thereon shall be made by wire transfer in accordance with the Holder's wire
transfer instructions to be delivered by Holder to Obligor in advance of the
time of payment or at such other place as the Holder may from time to time
designate in writing to the Obligor. Notification that such wire was transmitted
shall be emailed to Sanji Arisawa at sarisawa@arisawa.co.jp and to Mike Peterson
at MPeter484@aol.com.

<PAGE>

      Events of Default. The entire unpaid principal amount of this Note and the
interest due thereon shall, at the option of the Holder exercised by written
notice to the Obligor, forthwith become and be due and payable, without
presentment, demand, protest or other notice of any kind, all of which are
hereby expressly waived, if any one or more of the following events (herein
called "Events of Default") shall have occurred (for any reason whatsoever and
whether such happening shall be voluntary or involuntary or come about or be
effected by operation of law or pursuant to or in compliance with any judgment,
decree or order of any court or any order, rule or regulation of any
administrative or governmental body) and be continuing at the time of such
notice, that is to say:

            (a) failure to pay any principal or interest on this Note on or
before the Maturity Date;

            (b) breach of the Security Agreement;

      Remedies. In case any one or more of the Events of Default specified above
shall have occurred and be continuing, the Holder may proceed to protect and
enforce its rights either by suit in equity and/or by action at law, whether for
the specific performance of any covenant or agreement contained in this Note or
in aid of the exercise of any power granted in this Note, or the Holder may
proceed to enforce the payment of all sums due upon this Note or to enforce any
other legal or equitable right of the Holder. Obligor further promises to pay
reasonable attorneys' fees, court costs and any other expenses, losses, charges,
damages incurred or advances made by Holder in the protection or enforcement of
its rights caused by Obligor's default under the terms of this Note, in
connection with an refinancing or restructuring of this Note, in connection with
any litigation involving the transactions contemplated by this Note and in
protecting, preserving, collecting, leasing, selling or taking possession of the
Collateral and attempting to do any of the foregoing.

      In an Event of Default, Holder may exercise in respect of the Collateral,
in addition to all other rights and remedies provided for herein or otherwise
available to it, all the rights and remedies of a secured party on default under
the uniform commercial code in effect under the law of the State of New York
(the "UCC") (whether or not the UCC applies to the affected Collateral) and also
may: (a) require Obligor to, and Obligor hereby agrees that it will, at its
expense and upon request of Holder forthwith, have any and all appropriate
instruments prepared to irrevocably assign to Holder or its designee the general
intangible rights which are a component of the Collateral and execute and
deliver the same to accomplish Holder's rights hereunder and file such
instruments with the appropriate governmental authorities; and (b) without
notice except as specified below, sell the Collateral or any part thereof in one
or more parcels at public or private sale, at any of Holder's offices or
elsewhere, at such time or times, for cash, on credit or for future delivery,
and at such price or prices and upon such other terms as Holder may deem
commercially reasonable. Company agrees that, to the extent notice of sale shall
be required by law, at least ten days' notice to Company of the time and place

<PAGE>

of any public sale or the time after which any private sale is to be made shall
constitute reasonable notification. At any sale of the Collateral, if permitted
by law, Holder may bid (which bid may be, in whole or in part, in the form of
cancellation of indebtedness) for the purchase of the Collateral of any portion
thereof for the account of Holder (on behalf of Holder). Holder shall not be
obligated to make any sale of Collateral regardless of notice of sale having
been given. Holder may adjourn any public or private sale from time to time by
announcement at the time and place fixed therefor, and such sale may, without
further notice, be made at the time and place to which it was so adjourned. To
the extent permitted by law, Company hereby specifically waives all rights of
redemption, stay or appraisal which it has or may have under any law now
existing or hereafter enacted.

      Beyond the safe custody thereof, Holder shall have no duty with respect to
any Collateral in its possession or control (or in the possession or control of
any agent or bailee) or with respect to any income thereon or the preservation
of rights against prior parties or any other rights pertaining thereto. Holder
shall be deemed to have exercised reasonable care in the custody and
preservation of the Collateral in its possession if the Collateral is accorded
treatment substantially equal to that which it accords its own property. Holder
shall not be liable or responsible for any loss or damage to any of the
Collateral, or for any diminution in the value thereof, by reason of the act or
omission of any warehouseman, carrier, forwarding agency, consignee or other
agent or bailee selected by Holder in good faith.

      Upon the occurrence and during the continuance of an Event of Default, the
proceeds of any sale of, or other realization upon, all or any part of the
Collateral shall be applied: first, to all fees, costs and expenses incurred by
Holder with respect to the Loan Agreement; second, to all fees due and owing to
Holder; third, to accrued and unpaid interest under the Loan Agreement and this
Note; fourth, to the principal amounts due under the Loan Agreement and this
Note; fifth, to any other indebtedness or obligations of Obligor owing to
Holder.

      All rights and remedies of Lender under this Note are in addition to all
rights and remedies given to Lender contained in any other agreement, instrument
or document or available to Lender at law or in equity. All such rights and
remedies are cumulative and not exclusive or exhaustive and may be exercised
successively or concurrently. No exercise of any right or remedy shall be deemed
an election of remedies and preclude exercise of any other right or remedy.

      Severability. In the event that one or more of the provisions of this Note
shall for any reason be held invalid, illegal or unenforceable in any respect,
such invalidity, illegality or unenforceability shall not affect any other
provision of this Note, but this Note shall be construed as if such invalid,
illegal or unenforceable provision had never been contained herein.

      Governing Law. This Note and the rights and obligations of the Obligor and
the Holder shall be governed by and construed in accordance with the laws of the
State of New York without regard to New York State principles of conflict of
laws.

<PAGE>

      No Set-Off. Obligor will not be entitled to offset against any of its
financial obligations to Lender under this Note, any obligation owed to it or
any of its affiliates by or for Lender or any affiliate of Lender.

      Assignment. The Obligor shall not assign its obligations under this Note.

      IN WITNESS WHEREOF, the undersigned has caused this Note to be executed
and delivered on the date first written above.

LASER ENERGETICS, INC.

By: /s/ Robert D. Battis
    ---------------------------
Name:  Robert D. Battis
Title: Founder, President & CEO

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