Document:

PARTNERSHIP TERMINATION AGREEMENT

PARTNERSHIP TERMINATION AGREEMENT

 

This Partnership Termination Agreement ("Termination Agreement") is made
and entered into as of the 29th day of December, 1999, by and among THE ENERGY
NETWORK, INC. ("TEN"), a Connecticut corporation a/k/a Energy Networks, Inc.,
HARTFORD COGENERATION ASSOCIATES LIMITED PARTNERSHIP ("HCA"), a Connecticut
limited partnership, DOWNTOWN COGENERATION ASSOCIATES LIMITED PARTNERSHIP (the
"Partnership"), a Connecticut limited partnership, and INDEPENDENT ENERGY
OPERATIONS, INC. ("IEO"), a Connecticut corporation.

WHEREAS, on August 22, 1989, TEN, HCA and Paul Romanelli ("Romanelli")
entered into an Agreement of Limited Partnership of Downtown Cogeneration
Associates Limited Partnership (the "Partnership Agreement") providing for the
formation and operation of the Partnership; and

WHEREAS, pursuant to Section 2.03 of the Partnership Agreement, Romanelli
withdrew as a partner in 1989, leaving TEN and HCA as the sole remaining
partners (the "Partners"); and

WHEREAS, the Partnership was formed for the principal purpose of
acquiring and operating a cogeneration facility at the former G. Fox store on
Main Street in Hartford, Connecticut (the "Cogeneration Project"); and

WHEREAS, IEO and The Connecticut Light and Power Company ("CL&P")
entered into an Electricity Purchase Agreement (the "EPA"), dated as of
December 23, 1987, which provided for the sale by IEO of electricity to
CL&P; and

WHEREAS, IEO assigned its rights and obligations under the EPA to the
Partnership by an Assignment and Acceptance Agreement, dated August 23, 1989;
and

WHEREAS, IEO and The Hartford Steam Company ("HSC") entered into a Steam
Supply Agreement (the "Steam Supply Agreement"), dated as of December 3,
1987, providing for the sale by IEO of steam to HSC; and

WHEREAS, IEO assigned its rights and obligations under the Steam Supply
Agreement to the Partnership by an Assignment and Acceptance Agreement, dated
August 23, 1989; and

WHEREAS, IEO and The May Department Stores Company ("May") entered into
an Agreement of Lease (the "Lease") and related Agreement (the "May Agreement"),
each dated as of April 3, 1986; and

WHEREAS, IEO assigned its rights and obligations under the Lease and the
May Agreement, each as amended, to the Partnership on August 23, 1989; and

WHEREAS, May assigned its interests and obligations under the Lease and
the May Agreement, each as amended, to the City of Hartford pursuant to a
Quitclaim Deed, Assignment and Assumption Agreement dated and recorded April 14,
1993, in the Hartford Land Records; and

WHEREAS, IEO and Solar Turbines Incorporated ("Solar") entered into an
Operation and Maintenance Agreement (the "O & M Agreement") with respect to
the Cogeneration Project, dated as of February 3, 1989; and

WHEREAS, IEO assigned its interests and obligations under the O & M
Agreement to the Partnership by an Assignment and Acceptance Agreement, dated
August 23, 1989; and

WHEREAS, IEO, TEN, HCA and the Partnership entered into an Agreement to
Pay Development Commission (the "Commission Agreement"), dated August 22, 1989,
pursuant to which the Partnership agreed to pay IEO a Development Commission, as
defined therein; and

WHEREAS, the Partnership and CL&P have either entered into a
termination and release agreement by the date first set forth above or, if they
have not entered into the same, plan to enter into a termination and release
agreement in substantially the form attached hereto as Attachment A (as either
entered into or attached hereto the "Termination and Release
Agreement") providing for the termination of the EPA; and 

WHEREAS, the Partnership and CL&P have either entered into an
interconnection agreement by the date first set forth above or, if they have not
entered into the same, plan to enter into an interconnection agreement in
substantially the form as the "Interconnection Agreement" attached as
Exhibit A to the Termination and Release Agreement attached hereto as Attachment
A; and

WHEREAS, the Termination and Release Agreement provides, among other
things, for a payment by CL&P to the Partnership of $5,500,000 (the
"Termination Payment"); and

WHEREAS, the Partnership and HSC have either entered into a steam supply
termination agreement by the date first set forth above or, if they have not
entered into the same, plan to enter into a steam supply termination agreement
in the form attached hereto as Attachment B, (as either entered into or attached
hereto, the "Steam Supply Termination Agreement") providing for the termination
of the Steam Supply Agreement; and

WHEREAS, the Partners desire to terminate and dissolve the Partnership
and certain related agreements;

NOW, THEREFORE, in consideration of the premises and the promises
contained in this Agreement, the parties agree as follows:

1.Payments by Partnership.  On the 15th business
day after receipt by the Partnership of the Termination Payment, the Partnership
will take the following actions (the "First Closing"):

(a)  The Partnership will make a cash payment to TEN in the
amount of $955,000, and TEN will accept such payment, as full and complete
payment for any and all Technical Fees and Administrative Fees which would
otherwise be earned by TEN on or after the date of the First Closing under
Section 4.02 of the Partnership Agreement.

(b)  The Partnership will make a cash payment to IEO in the
amount of $840,000, and IEO will accept such payment, as full and complete
payment for any and all Development Commissions which would otherwise be earned
by IEO on and after the date of the First Closing under Section 4.02 of the
Partnership Agreement and under the Commission Agreement.  IEO, the Partnership,
TEN and HCA hereby agree that upon payment by the Partnership of said $840,000,
the Commission Agreement will be terminated and be of no further force and
effect, except as to obligations arising prior to the date of the First
Closing.

(c)  The Partnership will make a cash distribution to HCA of
$3,382,500, subject to adjustment based upon the amount of indebtedness and
interest paid in accordance with Section 1(d) below.

(d)  The Partnership will pay all of its then outstanding
indebtedness, together with interest due, to BankBoston under Loan No. 047-2808
020-000 00072, which has a balance due as of the date of this Agreement in the
amount of approximately $1,134,000 provided that there is then an outstanding
indebtedness to BankBoston.  In the event that another entity has entered into a
successor loan agreement with the Partnership for such indebtedness, the
Partnership will pay that outstanding indebtedness, together with interest
due.

(e)  If an agreement has been reached between the City of
Hartford and the Partnership providing for termination of the Partnership's
Lease and May Agreement with the City of Hartford (the "City Settlement") and
for a full and final payment by the date of the First Closing, the Partnership
will make the agreed-upon payment to the City of Hartford pursuant to the City
Settlement.

2.Contribution to Partnership by TEN.  (a) In consideration of
the Partnership's assignment to TEN of the right to receive payments by HSC
under the Steam Supply Termination Agreement and in order to facilitate the
payments provided for in Subsections (a) through (d) of Section 1 above, TEN
will make a cash contribution to the Partnership at the First Closing of
$811,500, subject to adjustment based upon the amount of indebtedness and
interest paid in accordance with Section 1(d) above.  If the City Settlement has
been reached and a full and final payment is made by the First Closing, TEN will
contribute $156,000 to the Partnership to fund such full and final payment.  If
the required full and final payment is more than $156,000, TEN and HCA will each
contribute to the Partnership 50% of the amount paid to the City of Hartford
pursuant to the City Settlement in excess of $156,000.  

(b)  If the City Settlement has been reached prior to the First Closing,
or is reached thereafter, which provides for payments that will extend beyond
the First Closing, the aggregate cost of those payments will be determined by
the Partnership on a present value basis using a discount rate of 8%.  TEN will
contribute  $156,000 toward such aggregate cost of payments.  If the present
value of the aggregate cost of those payments is more than $156,000, TEN and HCA
will each contribute 50% of the additional amount.

(c) If a City Settlement provides for payments that will extend beyond
the date of the First Closing but for a period of ninety (90) days or less, the
Partnership will make such payments.  If any City Settlement provides for
payments which will extend more than ninety (90) days beyond the date of the
Termination Payment, the Partners and the partners of HCA will enter into an
agreement with a third party financial institution or other responsible entity
("City Settlement Payor") whereby the City Settlement Payor will make
such payments required in fulfillment of the City Settlement which are to be
made following dissolution of the Partnership and such earlier payments as may
be agreed.  The Partnership will pay to the City Settlement Payor the amount of
all contributions made pursuant to Subsection (b) of Section 2, together with
any required fee (taking into account interest to the extent available or
applicable).  In the event that the amount required to be paid to the City
Settlement Payor by the Partnership to fund said payments under the City
Settlement is deemed  insufficient by the City Settlement Payor, the above
discount rate will be adjusted by the Partners so as to produce a payment to the
City Settlement Payor which will sufficiently fund its obligation to make such
payments.  Said agreement with the City Settlement Payor will provide that all
excess monies remaining after the final payment under the City Settlement
Agreement will be paid over to TEN and the partners of HCA (or their successors
or assigns) in accordance with their respective shares in the Partnership and
HCA when they were extant, together with interest on such excess amount to the
extent the Partners are able to negotiate such a payment of interest by the City
Settlement Payor.

3.Additional Contributions by Partners.  In addition to the
amounts provided for in Section 2 above, at the First Closing, TEN and HCA will
each contribute to the Partnership 50% of the funds necessary to bring the
Partnership's liquid assets (defined for purposes hereof as cash and receivables
less aggregate liabilities) to an aggregate of $500,000 after payment of all
amounts specified in Subsections (a) through (d) of Section 1 above, in order to
provide the Partnership with sufficient funds to complete the dissolution and
liquidation of the Partnership. 

4.Assignment of Payments to TEN.  In consideration of TEN's
cash contribution to the Partnership, as provided for in Section 2 above, and of
the distribution to HCA of $3,382,500 (or the adjusted amount) as provided in
Section 1(c) above, the Partnership will assign to TEN, and TEN will accept, all
of the Partnership's rights to payments by HSC under the Steam Supply
Termination Agreement, by execution and delivery of an Assignment of Rights to
Payments and Consent to Assignment in the form of Exhibit A
hereto.

5.Termination of Lease and May Agreement.  In the event that
the City Settlement has not been entered into  prior to the First Closing,  the
Partnership will, after the First Closing, attempt to reach agreement
expeditiously with the City of Hartford or its assignee to terminate the Lease
and the May Agreement under terms satisfactory to the Partnership.  

6.Winding Up and Liquidation of Partnership.  (a)  If the
Partnership has been able to terminate or otherwise dispose of the Lease, the
May Agreement and all other agreements to which the Partnership is a party by
the date of the First Closing, the Partnership will promptly take any and all
appropriate actions to dispose of its remaining assets of the Partnership and to
settle its remaining liabilities and obligations with the objective of
dissolving and liquidating the Partnership in accordance with Section 7 of the
Partnership Agreement within 90 days of the receipt of the Termination Payment,
unless such liquidation is prevented by circumstances beyond the control of the
Partners or by obligations to third parties (other than affiliates of the
Partners) which the Partners can not arrange to have performed other than by the
continuation of the Partnership.  In the event that the Partnership can not be
liquidated and dissolved within 90 days of the receipt of the Termination
Payment for the reasons set forth in the prior sentence, the Partnership will
continue operations only for so long and to such an extent as is necessary to
meet such contractual obligations to third parties (other than affiliates of the
Partners) and/or following the end of said circumstances beyond the control of
the Partners.  As soon as such contractual obligations are fulfilled and/or
following the end of said circumstances, the Partnership will liquidate and
distribute all remaining assets to the Partners in accordance with their shares.
In the event that the continued operations of the Partnership during the
liquidation process requires funds in excess of those available to it, the
Partners will contribute such required additional funds in accordance with their
respective Partnership shares.  

     (b)  Disposition of the assets of the Partnership shall be
accomplished in a commercially reasonable fashion with the objective of securing
the maximum consideration for the Partnership.  Each of the Partners (and the
partners of HCA) shall have the option to bid on any or all of the Partnership
assets for a thirty (30) day period following the Termination Payment. The
written consent of the non-purchasing Partner (and  the non-purchasing
partner(s) of HCA) must be obtained by the  Purchasing Partner (and the
purchasing partner(s) of HCA) as to such purchase(s).  In the event neither of
the Partners (nor either partner of HCA) elects to exercise said option to bid,
or if either or both Partners (or either of the partners of HCA) bid but the
non-purchasing Partner(s)(and the non-purchasing partner(s) of HCA) do not
consent, the Partnership will attempt to dispose of such assets by sale to third
party purchasers (including affiliates of the Partners and affiliates of the
partners of HCA) in accordance with the first sentence of this Subsection (b) of
Section 6.  In the event that no third party purchaser can be found which is
willing to pay a price higher than the price that a Partner (or either of the
partners of HCA) was willing to pay for any such assets, the bidding Partner (or
the bidding partner of HCA) shall be permitted to purchase those assets for the
price it bid hereunder.  During the liquidation process, TEN will continue its
role as Managing Partner and Tax Matters Partner.

     (c)     If TEN desires to operate the Cogeneration Project on a
temporary basis in order to provide it with supplemental chilled water capacity
through the summer of 2000, the Partners (and the partners of HCA) will enter
into good-faith negotiations toward an agreement that will permit such temporary
operation in a manner that is equitable to all of the Partners (and the partners
of HCA).

7.Conditions.  The dissolution and liquidation of the
Partnership is conditioned upon the following:

(a)The termination of the EPA;

(b)The receipt by the Partnership of the Termination Payment as
provided for in the Termination and Release Agreement;

(c)The execution by the Partnership and HSC of the Steam Supply
Termination Agreement; 

(d)   Disposition of the Lease, the May Agreement and the O & M
Agreement in a manner satisfactory to the Partners; and

(e) Termination of the Interconnection Agreement in a manner satisfactory
to the Partners.

8.Closing.  The First Closing will be held at the offices of
Murtha, Cullina, Richter and Pinney LLP, CityPlace I, 185 Asylum Street,
Hartford, Connecticut 06103 at 10:00 a.m. on the 15th business day
after receipt of the Termination Payment.

9.Termination of All Rights and Obligations.  It is the
intention of the parties to this Termination Agreement to provide for the
termination of all rights and obligations among them with respect to the
Cogeneration Project, other than those rights and obligations whose continuation
is specifically provided for in this Agreement, and the parties agree that any
and all agreements with respect to the Cogeneration Project, other than as
provided herein, shall be extinguished and shall be of no further force and
effect after the consummation of the transaction provided for herein.

10.Mutual Representations.  Each party represents and warrants
to the other party that:

(a)the execution, delivery and performance of this
Termination Agreement has been duly authorized by all necessary proceedings;

(b)this Termination Agreement constitutes its legal, valid
and binding obligation, enforceable against it in accordance with the terms
hereof, except as: (i) such enforcement may be subject to bankruptcy,
insolvency, reorganization, moratorium or other similar laws now or hereafter in
effect relating to creditors' rights generally, and (ii) the remedy of specific
performance and injunctive relief may be subject to equitable defenses and to
the discretion of the court before which any proceeding therefor may be
brought;

    (c)there is no action, suit, grievance, arbitration or
proceeding pending or, to the knowledge of such party, threatened against or
affecting such party at law or in equity, before any governmental authority that
prohibits or impairs its ability to execute and deliver this Termination
Agreement or to consummate the transactions provided for herein.

11.Governing Law; Jurisdiction; Waivers.  This Termination
Agreement shall be construed in accordance with and governed by the laws of the
State of Connecticut, without applicable of principles of conflicts of law. EACH
PARTY HEREBY CONSENTS TO THE NONEXCLUSIVE JURISDICTION OF THE COURTS OF THE
STATE OF CONNECTICUT FOR THE PURPOSES OF ALL LEGAL PROCEEDINGS ARISING OUT OF OR
RELATING TO THIS TERMINATION AGREEMENT AND THE TRANSACTION.  EACH PARTY
IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW,
(a) ANY OBJECTION TO THE LAYING OF VENUE OF ANY SUCH PROCEEDING BROUGHT IN
SUCH A COURT; (b) ANY CLAIM THAT ANY SUCH PROCEEDING BROUGHT IN SUCH COURT
HAS BEEN BROUGHT IN AN INCONVENIENT FORUM; AND (c) ITS RIGHT TO A JURY TRIAL OF
ANY CLAIM RESULTING HEREFROM.

12.Counterparts.  This Termination Agreement may be executed
in any number of counterparts, all of which taken together shall constitute one
and the same instrument.

13.Amendments.  This Termination Agreement may not be amended,
supplemented or otherwise modified, and no provision of this Termination
Agreement may be waived, except by a written instrument signed by each of the
parties.

14.Assignments.  This Termination Agreement shall be binding
upon, and inure to the benefit of, each party and its successors and assigns;
provided that no party may assign or transfer any of its rights or
obligations under this Termination Agreement without the advance written consent
of the other.

15.Further Assurances.  Subject to the terms and conditions of
this Termination Agreement, each party shall execute and deliver such other
documents and instruments, provide such materials and information, and take such
other actions as may reasonably be necessary, proper or advisable, to the extent
permitted by applicable law, to fulfill the purposes and intent of this
Termination Agreement.

16.Confidentiality.  Each party shall keep confidential, and
shall not disseminate to any third party (other than on a confidential basis to
its counsel, advisors, lenders and affiliates) or use for any other purpose
(except with the written authorization of the other parties), the specific terms
and conditions of this Termination Agreement and any non-public information
received from the other that is marked as confidential or proprietary unless
legally compelled by deposition, inquiry, request for documents, subpoena, civil
investigative demand or similar process, or by order of a court, commission or
tribunal of competent jurisdiction; or in order to comply with applicable rules
or requirements of any stock exchange, government department or agency or other
regulatory authority, or by requirements of any securities law or regulation or
other legal requirement.  The parties shall reasonably coordinate all publicity
specifically relating to the transaction.

17.Entire Agreement.  This Termination Agreement sets forth
the entire agreement of the parties with respect to the subject matter herein
and takes precedence over all prior understandings.

18.Expenses.  Each party shall bear all of its own costs and
expenses incurred by it to consummate the transactions provided for herein,
including fees and expenses of their respective counsel, accountants and
investment advisors.  Notwithstanding the foregoing, if a court determines that
a party has failed to perform its obligations herein, then the prevailing party
shall be entitled to recover reasonable attorneys' fees, court costs and other
reasonable expenses incurred in the enforcement or attempted enforcement of the
applicable rights and obligations set forth in this Termination Agreement or in
a successful claim for damages based on any breach of this Termination
Agreement.

19.Remedies.  Each party acknowledges and agrees that the
other party would be damaged irreparably in the event any of the provisions of
this Termination Agreement are not performed in accordance with their specific
terms or otherwise are breached.  Accordingly, each party agrees that the other
party shall be entitled to an injunction or injunctions to prevent breaches of
the provisions of this Termination Agreement and to enforce specifically this
Agreement and the terms and provisions hereof in addition to any other remedy to
which it may be entitled, at law or in equity.  In any event, no party shall
have any liability to the other party for special, incidental, indirect or
consequential damages for any matter whatsoever associated with the activities
covered by this Termination Agreement.

20.  Severability.  If any provision of this Termination Agreement
shall be held to be invalid, illegal or unenforceable, the validity, legality or
enforceability of any of the remaining provisions shall not be in any way
affected or impaired, and, to the fullest extent possible, the provisions hereof
shall be constructed so as to give effect of the intent manifested by all of the
terms of this Termination Agreement. 

WHEREFORE, the parties have executed this Termination Agreement on the
date first above written.

THE ENERGY NETWORK, INC.

 

 

By:S/ R. L.
Babcock            &
nbsp;          

      Name:R. L. Babcock

      Title:Vice President

 
Hartford Cogeneration Associates 

Limited Partnership

A General Partner

       By:  Independent Energy

               Operations, Inc.

               Its General Partner

         By: S/ Paul F.
Romanelli          

         Name:  Paul F. Romanelli

         Title: President

DOWNTOWN COGENERATION ASSOCIATES LIMITED 

 PARTNERSHIP

 

By:  The Energy Network, Inc.

     A General Partner

By:S/ R. L.
Babcock            &
nbsp;          

      Name:R. L. Babcock

      Title:Vice President

     and

 
     Hartford Cogeneration Associates 

     Limited Partnership

        A General Partner

 

 

    By:  Independent Energy

            Operations, Inc.

         &nb
sp;   Its General Partner

         By: S/ Paul F.
Romanelli          

         Name:  Paul F. Romanelli

         Title: President

           &nb
sp;             
;             &
nbsp;     INDEPENDENT ENERGY

            &
nbsp;            &nb
sp;             
;     OPERATIONS, INC.

 

 

         By: S/ Paul F.
Romanelli          

         Name:  Paul F. Romanelli

         Title: PresidentPROMISSORY NOTE
$1,500,000                                                   January 27, 2000

     WHEREAS, Medicore, Inc., a Florida corporation, is in need of capital for
a financing transaction; and

     WHEREAS, Dialysis Corporation of America, a Florida corporation and a
68% owned subsidiary of Medicore, Inc., seeks to provide the needed financing
to its parent pursuant to the provisions and terms of this Note;

     NOW, THEREFORE, FOR VALUE RECEIVED, Borrower, promises to pay to the
order of the Lender (to its successors and assigns), or the Holder of this
Note, the Principal Sum of One Million Five Hundred Thousand ($1,500,000)
Dollars, or Two Million ($2,000,000) Dollars should Borrower increase this
Note in accordance with its terms by the Additional Sum, with interest on
the Principal Sum of this Note outstanding from time to time, as provided by
the rates and terms below.

Definitions
-----------

     a.  "Additional Sum" shall mean an additional Five Hundred Thousand
         ($500,000) Dollars which Borrower has the option of borrowing from
         Lender within ninety (90) days of and under the same terms and
         conditions of this Note.

     b.  "Borrower" shall mean MEDICORE, INC.

     c.  "Event of Default" shall mean any event described in Section 3.

     d.  "Financing" shall mean this initial loan of One Million Five Hundred
         Thousand ($1,500,000) Dollars made to the Borrower by the Lender
         under this Note, as may be increased by the Additional Sum.

     e.  "Holder" shall mean the Lender or any successor or assignee of the
         Lender.

     f.  "Lender" shall mean DIALYSIS CORPORATION OF AMERICA.

     g.  "Linux" shall mean THE LINUX FUND, INC., a Delaware corporation,
         which entered into a Loan Agreement with Borrower as of the date of
         this Note.

<PAGE>

     h.  "Loan Agreement" shall mean the Investment and Loan Agreement between
         the Borrower and Linux dated January 27, 2000.

     i.  "Note" shall mean this Promissory Note which evidences the Financing.

     j.  "Person" shall mean a corporation, an association, a partnership, a
         joint venture, a joint stock company, a trust, an organization, a
         business, an individual or any government agency or entity.

     k.  "Principal Sum" shall mean the entire outstanding principal balance
         of the Financing under this Note as of the date which such calcula-
         tion or determination shall be made exclusive of accrued interest.

     l.  "Purpose" shall mean the financing by Borrower to Linux in accordance
         with the Loan Agreement.

Section 1. Terms of the Note and Payment
           -----------------------------

     1.1  Advances and Aggregate Principal.  This Note evidences the
          --------------------------------
Financing provided by the Lender to or on behalf of the Borrower. The aggre-
gate Principal Sum outstanding under this Note shall not exceed Two Million
($2,000,000) Dollars.

     1.2  Payment.  The entire unpaid Principal Sum of this Note, together
          -------
with any accrued interest thereon, shall be due and payable on January 26,
2001.

     1.3  Manner of Payment.  Payment of the Principal Sum and interest
          -----------------
accrued on such Principal Sum under this Note shall be made in lawful money
of the United States of America at the offices of the Lender, 27 Miller
Avenue, Lemoyne PA 17043, or at such other place as the Lender (or Holder)
may at any time designate in writing to the Borrower.

     1.4  Financing Proceeds.  The Borrower shall use the proceeds of the
          ------------------
Financing under this Note as provided for in the Loan Agreement, and which
is consistent with all applicable laws and statutes.

Section 2. Interest Rate

     2.1  Rate.  Interest shall accrue upon the Principal Sum of this Note
          ----
at a rate of interest equal to ten percent (10%) per annum, from the date
hereof until the Principal Sum is fully

<PAGE>  2

paid.  All interest accruing upon the Principal Sum of this Note shall be
calculated on the basis of a 360 day year, but interest will accrue and be
paid on the basis of the actual number of days elapsed in each year.

Section 3. Default
           -------

     3.1 The occurrence of any one or more of the following events shall con-
stitute an "Event of Default":

     a.  Borrower fails to pay in full the Principal Sum or interest due
         hereunder promptly when it becomes due.

     b.  Borrower fails or neglects to observe, perform or comply with the
         terms, conditions, covenants or warranties contained in this Note or
         the Loan Agreement required to be observed, performed or complied
         with by Borrower;

     c.  The occurrence of any material uninsured damage to or loss, theft or
         destruction of any of Borrower's property;

     d.  Borrower is enjoined, restrained or in any way prevented by the order
         of any court or any administrative or regulatory agency from
         conducting all or any material part of its business;

     e.  Any strike, lockout, labor dispute, embargo, condemnation, act of
         God or public enemy, or other casualty which causes the cessation
         or substantial curtailment of the Borrower's revenue producing
         activities for 30 days or more;

     f.  The entry of judgment or the issuance of a warrant of attachment,
         execution or similar process against the Borrower or its property
         in excess of $250,000, which shall not be dismissed, discharged or
         bonded within thirty (30) days;

     g.  Borrower ceases to hold a majority interest in the Lender;

     h.  The occurrence of any material adverse change in the financial
         condition of the Borrower; or

     i.  Borrower shall (A) make a general assignment for the benefit of
         creditors; (B) commence any case, proceeding or other action
         seeking to have an order for relief entered on its behalf as a
         debtor or to adjudicate it a bankrupt or insolvent, or seeking
         reorganization, arrangement, adjustment, liquidation, dissolution
         or composition of it or

<PAGE>  3

         its debts or seeking appointment of a receiver, trustee, custodian
         or other similar official for it or for all or any substantial part
         of its property (collectively a "proceeding for relief"); (C) become
         the subject to any proceeding for relief which is not dismissed
         within 60 days of its filing or entry; or (D) be dissolved or
         otherwise fail to maintain its legal existence.

     3.2  Acceleration of the Loan Upon Default.  If at any time the Holder
          -------------------------------------
learns that any warranty, representation, certificate or statement of
Borrower (whether contained in this Note or not) pertaining to or in connec-
tion with this Note or the Loan Agreement is not true, or upon the happening
of any Event of Default as defined herein, the entire amount of the
Principal Sum with accrued interest shall become due and payable forthwith
without notice or demand.  In no event and under no circumstances shall
Holder be entitled to unaccrued or unearned interest.  In the Event of
Default, the Principal Sum and any accrued and unpaid interest shall bear
interest from the time of such Event of Default at the maximum legal rate
permissible.

Section 4. Representations And Warranties
           ------------------------------

     In order to induce the Lender to enter into this Note, the Borrower
makes the following continuing representations to the Lender:

     4.1 Organization and Power.  The Borrower is a duly authorized corpora-
         ----------------------
tion in good standing under the laws of the State of Florida and is qualified
to do business and is in good standing in every other jurisdiction where the
nature of its business requires it to be so qualified.

     4.2 Authority.  The execution, delivery and performance of this Note by
         ---------
Borrower have been duly authorized by all necessary action on the part of
Borrower.  Borrower has all requisite power to execute, deliver and perform
under this Note, and the performance by Borrower under this Note is not
prohibited by, and does not violate any provisions of or result in the breach
of (i) any judgment, order or decree applicable to Borrower, (ii) the
certificate of incorporation or by-laws of Borrower, or (iii) any promissory
note, indenture or any evidence of indebtedness or security therefor, lease,
contract, purchase or other commitment or any other agreement to which
Borrower s a party or by which it is bound, and has not resulted and will
not result in the creation or imposition of any lien, security interest or
encumbrance in favor of any third party on any of Borrower's assets.  This
Note has been duly executed and delivered by Borrower and, assuming due
execution and delivery by Lender, is a

<PAGE>  4

valid and legally binding obligation of Borrower enforceable in accordance
with its terms, except as enforcement may be limited by bankruptcy,
insolvency or other similar laws affecting the enforcement of creditors'
rights generally.

     4.3 Consents and Approvals.  Neither the execution and delivery of this
         ----------------------
Note by Borrower, the consummation by Borrower of the transactions contem-
plated hereby nor compliance by Borrower with any of the provisions hereof
will (i) require any consent, waiver, approval, authorization or permit of,
or filing with or notification to, any governmental or regulatory authority,
(ii) result in a default (or give rise to any right or termination, can-
cellation or acceleration) under any of the terms, conditions or provisions
of any indenture, mortgage, note, lien, license, government registration,
contract, lease, agreement or other instrument or obligation to which
Borrower is a party or by which Borrower or any of its assets may be bound;
or (iii) violate any order, writ, judgment, injunction, decree, statute,
ordinance, rule or regulation applicable to Borrower or any of its assets.

    4.4 Litigation and Government Regulation.  There are no actions, suits or
        ------------------------------------
proceedings pending or, to the knowledge of the Borrower, threatened against
or effecting the Borrower at law or in equity before any court or adminis-
trative officer or agency which might result in a material adverse change in
the business or financial condition of the Borrower.

     4.5 Taxes.  The Borrower is not delinquent in the payment of any taxes
         -----
which have been levied or assessed by any governmental authority against it
or its assets. The Borrower has timely filed all tax returns which are
required to be filed by law.

Section 5. Prepayment
           ----------

     The Principal Sum may be paid, in whole or in part, in advance of the
stated maturity date as per Section 1.2 (any such payment referred to as
"Prepayment") at any time without penalty provided that all accrued but
unpaid interest including the interest on the date of Prepayment is paid in
full.  All payments shall be applied when received first to the payment of
interest on the Principal Sum and then to reduce the Principal Sum.

Section 6. Governing Law
           -------------

     This Note shall be governed and construed according to the laws of the
State of Florida.

<PAGE>  5

Section 7. Severability
           ------------

     The parties hereto intend and believe that each provision in this Note
comports with all applicable local, state and federal laws and judicial
decisions. However, if any provision or provisions, or if any portion of any
provision or provisions, in this Note shall be found by a court of law to be
in violation of any applicable local, state or federal law or judicial
decision, the rights and obligations under the remainder of this Note shall
continue in full force and effect.

Section 8. Jury Waiver.
           -----------

     Lender and Borrower do hereby knowingly, voluntarily, unconditionally
and intentionally waive the right to trial by jury in respect of any litiga-
tion based hereon, or arising out of or in connection with this Note.

Section 9. No Usury.
           --------

     It is hereby expressly agreed that if under any circumstances whatsoever
fulfillment of any provision of this Note, at the time performance of such
provision shall be due, shall involve transcending the limit validly
prescribed by applicable usury statutes or any other laws with regard to
obligations of like character and amount, then ipso facto the obligations to
be fulfilled shall be reduced to the limit of such statutes or laws, so that
in no event shall any exaction be possible under this Note that is in excess
of the limit, but such obligation shall be fulfilled to the maximum limit.
All agreements herein are expressly limited so that in no contingency or
event whatsoever, whether by reason of advancement of the proceeds hereof,
acceleration of maturity of the unpaid Principal Sum hereof, or otherwise
shall the amount paid or agreed to be paid to Holder for the use, forbearance
or detention of the Financing exceed the highest lawful rate.  In the event
the maximum rate is eliminated, the maximum rate of interest hereunder shall
be adjusted simultaneously with the effective date of the amendment
eliminating the maximum usury rate which, however, shall never exceed any
criminal usury rate then in effect.  In the event the total liability for
payments of interest and payments in the nature of interest including,
without limitation, all charges, fees, exactions or other sums which may at
any time be deemed to be interest shall, for any reason whatsoever, result in
an effective rate of interest, which for any month or other interest payment
period exceeds the limit

<PAGE>  6

imposed by any applicable usury laws, all sums in excess of those lawfully
collectible as interest for the period in question shall, without further
agreement or notice by, between or to any party hereto, be applied to reduce
the accrued interest hereunder, if any, and then to a reduction of the
Principal Sum immediately upon receipt of such sums by the Holder, or shall
be refunded to Borrower, with the same force and effect as though the
undersigned had specifically designated such excess sums to be so applied;
provided, however, that the Holder of this Note may, at any time and from
time to time, elect, by notice in writing to the undersigned, to waive,
reduce or limit the collection of any sums in excess of those lawfully
collectible as interest rather than accept such sums and apply them as set
forth above.  It is the intention of the parties that the Borrower does not
intend or expect to pay nor does the Holder intend or expect to charge,
accept or collect any interest under this Note or the Financing greater than
the highest rate of interest which may be charged under applicable law.

Section 10. Miscellaneous
            -------------

     10.1  All Changes in Writing.  Neither this Note or any provisions
           ----------------------
herein may be changed, amended or terminated orally. All changes to this
Note must be made in writing signed by all parties, or their agents, herein.

     10.2  Headings.  The section headings of this Note are for reference
           --------
only and are to be given no effect in construction or interpretation of the
Note.

     10.3  Borrower Waivers.  With respect to the Principal Sum and all
           ----------------
accrued interest and any and all obligations under this Note, Borrower
waives the following: (1) all rights of exemption of property for levy or
sale under execution or other process for the collection of debts under the
Constitution or laws of the United States or any state thereof; (2) demand,
presentment, protest, notice of dishonor, suit against any party and all
other requirements necessary to charge or hold Borrower liable on the
Principal Sum and all accrued interest; (3) all statutory provisions and
requirements for the benefit of Borrower, now or hereafter in force, to the
extent that same may be waived; (4) the right to interpose any set-off or
counterclaim of any nature or description in any litigation in which the
Holder and Borrower shall be adverse parties.  Borrower agrees that the
Principal Sum and all accrued interest may, from time to time, in whole or
in part, be renewed, extended, modified, accelerated, compromised, discharged
or released by the Holder, all without notice to or further reservations of
rights against Borrower and all without

<PAGE>  7

in any way affecting or releasing the liability of Borrower.  Borrower agrees
to pay all filing fees and taxes and all costs of collecting or securing or
attempting to collect or secure the Principal Sum, accrued interest and any
other obligations under the Note, including attorneys' fees, whether or not
involving litigation and/or appellate proceedings.

     10.4  Use of Certain Terms.  The words "herein," "hereof," "hereunder"
           --------------------
and other words of similar import refer to this Note as a whole and not to
any particular section of this Note unless specifically stated otherwise in
this Note.

     10.5  Assignment.  Borrower may not sell, assign or transfer its duties
           ----------
and obligations under this Note.

     10.6  Disbursement of Financing Proceeds.  Borrower hereby authorizes
           ----------------------------------
and directs Lender to disburse, for and on behalf of Borrower, the proceeds
of the Financing made by Lender to Borrower to such Persons as Borrower
shall direct, whether in writing or orally.

     10.7  Remedies.  The Holder shall not by any act, delay, omission or
           --------
otherwise be deemed to have waived any of its rights or remedies, and no
waiver of any kind shall be valid, unless in writing and signed by the
Holder.  All rights and remedies of the Holder under the terms of this Note
and under any statutes or rules of law shall be cumulative and may be
exercised successively or concurrently.  Borrower agrees that the Holder
shall be entitled to all the rights of a holder in due course of a negotiable
instrument.

     10.8  Notice.  Any notice required to be given to any Person shall be
           ------
deemed sufficient if mailed, postage prepaid, to such Person's address as it
appears on this Note, or, if none appears, to any address in the Holder's
files.  The Holder shall have the right unilaterally to correct patent errors
in this Note.

     10.9  Non-Conditional Liability.  Borrower shall be liable for all
           -------------------------
indebtedness represented by this Note and has subscribed its name hereto
without condition that anyone else should sign or become bound hereon and
without any other condition whatever being made.  The provisions of this
Note are binding on the administrators, assigns and successors of Borrower,
and shall inure to the benefit of the Holder, its successors and assigns.
This Note is executed under the seal of the Borrower.

<PAGE>  8

     IN WITNESS WHEREOF, the undersigned, intending to be legally bound
hereby, has duly executed this Note as of the day and year first above
written.

                                       MEDICORE, INC.

                                           /s/ Thomas K. Langbein

                                       By:--------------------------------
                                          THOMAS K. LANGBEIN, Chairman of
                                          the Board, CEO and President

<PAGE>  9

                              ACKNOWLEDGEMENT

STATE OF NEW JERSEY  )
                     :   ss.:
COUNTY OF BERGEN     )

Before me personally appeared THOMAS K. LANGBEIN, as Chairman of the Board,
CEO and President of MEDICORE, INC., a Florida corporation, to me well known
and known to me to be the person described in and who executed the foregoing
instrument, and acknowledged to and before me that he executed said
instrument of the purposes therein expressed, on behalf of the corporation.

WITNESS my had and official seal, this 27th day of January, 2000.

                                       ----------------------------------
                                       Notary Public, State of New Jersey
                                       My commission expires:

                                               [NOTARIAL SEAL]

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