Document:

This promissory note has not been registered under the Securities Act of 1933,
as amended, or registered or qualified under applicable state securities laws.
Graphite Technology Group, Inc. is not required to give effect to any transfer
of this promissory note unless (1) there is an effective registration statement
under the Securities Act with respect to this promissory note and this
promissory note is registered or qualified under applicable state securities
laws, or (2) the holder of the promissory note provides to Graphite Technology
Group, Inc. an opinion of counsel reasonably acceptable to Graphite Technology
Group, Inc. to the effect that the transfer may be made without registration
under the Securities Act and applicable state securities laws.

                              12 % PROMISSORY NOTE

$1,000,000                                                        March 10, 2006

      For value received, GRAPHITE TECHNOLOGY GROUP, INC., a Delaware
corporation ("Graphite"), hereby promises to pay to the order of BPK Resources,
Inc. (the "Holder") the amount of up to One Million Dollars ($1,000,000), or
such lesser amount having been advanced to Graphite by the Holder pursuant to
this Note, in accordance with the following terms:

      1. Payment of Amount Owed; Security. Graphite shall pay the Holder the
principal amount of this Note and all accrued interest on or before March 31,
2006. This Note shall be secured by all of the assets held by Graphite, as
evidenced by that certain Amended and Restated Security Agreement by and between
Graphite and Holder dated the date hereof (the "Security Agreement");

      2. Payment of Interest. Interest will accrue on the unpaid principal
amount of this Note at an annual rate of 12%. Interest will be computed on the
basis of a 360-day year of twelve 30-day months.

      3. Stock Options. In the event Graphite determines not to further pursue
the proposed business combination with the Holder, the Holder shall have the
option to purchase for $1,00,000 at any time prior to December 31, 2008 such
number of shares of Graphite's common stock as shall equal thirteen and
one-third percent (13.33%) of Graphite's then outstanding common stock
calculated on a fully diluted basis (including all outstanding options, warrants
and other securities or rights convertible or exchangeable into the common
stock) as evidenced by that certain Option Agreement by and between Graphite and
Holder dated the date hereof (the "Option Agreement"). The number of shares of
stock of Graphite covered by this option, the option price and other relevant
provisions shall be appropriately adjusted in the event of a stock dividend,
recapitalization, forward stock split, reverse stock split or other similar
corporate transaction in order to prevent dilution or enlargement of benefits
intended to be made available hereby. In case Graphite issues any shares of its
common stock between the date hereof and the date of the exercise of such
option, or issues any option, warrant, convertible security or other right to
purchase or acquire its securities between the date hereof and the date of the
exercise of the option, then the option to purchase provided for in this
paragraph 3 shall be adjusted downward in price and upward in amount, on a
"full-ratchet" basis, based on the price of the securities so issued.
<PAGE>

      4. Representations and Negative Covenants. Graphite represents and
warrants to Holder that: (i) it has duly obtained all authorizations, consents,
rulings, approvals, licenses, franchises, permits and certificates by or of all
third parties to any existing agreements or instruments by which Graphite or any
of the properties or assets of Graphite is or may be bound, which are required
for the execution, delivery and performance of this Note, the Security
Agreement, or Option Agreement, and the consummation of the transactions
contemplated hereby or thereby, as applicable, and of or by all governmental
authorities and non-governmental administrative or regulatory agencies having
jurisdiction over Graphite, its assets or properties, this Note, the Security
Agreement, the Option Agreement or the Pledged Collateral (as that term is
defined in the Security Agreement), which are required for the execution,
delivery and performance of this Note, the Security Agreement or the Option
Agreement and the consummation of the transactions contemplated hereby or
thereby, as applicable; and (ii) neither the execution and delivery of this
Note, the Security Agreement or the Option Agreement by Graphite nor the
performance by Graphite of its obligations hereunder or thereunder as
applicable, will: (A) conflict with Graphites's certificate of incorporation or
bylaws; (B) violate any statute, law, ordinance, rule or regulation, applicable
to Graphite or any of the properties or assets of Graphite; or (C) violate,
breach, be in conflict with or constitute a default (or an event which, with
notice or lapse of time or both, would constitute a default) under, or permit
the termination of any provision of, or result in the termination of, the
acceleration of the maturity of, or the acceleration of the performance of any
obligation of Graphite, or result in the creation or imposition of any lien upon
any properties, assets or business of Graphite under, any contract or any order,
judgment or decree to which Graphite is a party or by which it or any of its
assets or properties is bound or encumbered. Until the full outstanding
principal amount and all accrued interest due hereunder is paid in full,
Graphite will not, without the prior written consent of the Holder, merge with,
or sell substantially all its assets to, any individual or entity other than the
Holder, sell any material amount of its assets to any individual or entity,
issue any shares of its capital stock or options, warrants or other securities
convertible or exchangeable into shares of its capital stock, declare or pay any
dividend, incur any debt other than trade debt incurred in the ordinary course
of business and consistent with past practice or the contemplated $625,000
Commonwealth of Pennsylvania DCED financing, or increase any salaries or bonuses
payable to any of its officers or key employees.

      5. Method of Payment. Graphite shall pay amounts due under this Note by
wire transfer of immediately available funds to an account designated by the
Holder in a written notice to Graphite. All payments must be in such currency as
is then legal tender for payment of public and private debts in the United
States of America. All amounts paid will be applied first to accrued, unpaid
interest on this Note and the balance, if any, will be applied to reducing the
principal amount of this Note.

      6. Prepayment. Graphite may prepay this Note in whole or in part at any
time without premium or penalty.

      7. Events of Default.

            The occurrence of one or more of the following events (an "Event of
Default") will cause Graphite to be in default under this Note:

                  Graphite fails to timely make the payment due under section 1
of this Note or breaches any other obligation contained in this Note;
<PAGE>

                  Graphite breaches any of its negative covenants set forth in
section 4 of this Note; or

                  there occurs an Event of Insolvency (as hereinafter defined).

                  As used in this Note, an "Event of Insolvency" means any of
the following:

                  the initiation by Graphite of proceedings under the United
States Bankruptcy Code, or any other applicable U.S. federal or state law or any
applicable foreign law seeking an order for relief;

                  the consent of Graphite to the institution of bankruptcy or
insolvency proceedings against it;

                  the filing by Graphite of a petition seeking reorganization or
release under the Federal Bankruptcy Reform Act or any other applicable U.S.
federal or state law or applicable foreign law, or the consent by Graphite to
the filing of any such petition or to the appointment of a receiver, liquidator,
assignee, trustee, sequestrator (or other similar official) of Graphite or of
any substantial part of the property of Graphite;

                  the making by Graphite of an assignment for the benefit of
creditors; and

                  the entry of a decree or order by a court having jurisdiction
adjudging Graphite bankrupt or insolvent, or approving as properly filed a
petition seeking reorganization, arrangement, adjustment or composition of or in
respect of Graphite under the U.S. Bankruptcy Code or any other applicable U.S.
federal or state law or any applicable foreign law, or appointing a receiver,
liquidator, assignee, trustee, sequestrator (or other similar official) of
Graphite or of any substantial part of the property of Graphite, or ordering the
winding up or liquidation of the affairs of Graphite, and (A) Graphite consents
to that decree or order or (B) that decree or order remains unstayed and in
effect for more than 60 consecutive days.

      8. Acceleration. Upon occurrence of an Event of Default, the Holder may,
in the Holder's sole discretion, by notice to Graphite declare the entire unpaid
principal amount of this Note, all interest accrued and unpaid thereon, and all
other amounts payable hereunder to be forthwith due and payable, whereupon this
Note and all such other amounts will become immediately due and payable.

      9. Expenses. Graphite shall pay all reasonable expenses incurred by the
Holder in connection with collection and enforcement of this Note, including
without limitation reasonable attorneys' fees and costs.

      10. Waiver of Presentment. Graphite hereby waives presentment, notice of
demand for payment, protest, notice of dishonor, and any other notice of any
kind with respect to this Note.

      11. Waiver of Rights. Neither delay on the part of the Holder in
exercising any of the Holder's rights nor any partial or single exercise of any
of those rights constitutes a waiver thereof or of any other right, and no
waiver on the part of the Holder of any of the Holder's rights constitutes a
waiver of any other right.
<PAGE>

      12. Amendment. This Note may only be amended, waived, discharged, or
terminated by an instrument in writing signed by the party against which
enforcement of the amendment, waiver, discharge, or termination is sought.

      13. Successors and Assigns. This Note is binding on Graphite and its
successors and assigns, and inures to the benefit of the Holder and the Holder's
heirs, executors, successors, and assigns.

      14. Governing Law. The laws of the Commonwealth of Pennsylvania, without
giving effect to principles of conflict of laws, govern all matters arising
under this Note, including without limitation all tort claims.

      15. THE FOLLOWING PARAGRAPH SETS FORTH A WARRANT OF AUTHORITY FOR AN
ATTORNEY TO CONFESS JUDGMENT AGAINST GRAPHITE. IN GRANTING THIS WARRANT OF
AUTHORITY TO CONFESS JUDGMENT AGAINST GRAPHITE, GRAPHITE HEREBY KNOWINGLY,
INTENTIONALLY AND VOLUNTARILY, AND ON THE ADVICE OF SEPARATE COUNSEL OF
GRAPHITE, UNCONDITIONALLY WAIVES ANY AND ALL RIGHTS GRAPHITE HAS OR MAY HAVE TO
PRIOR NOTICE, EXCEPT AS OTHERWISE PROVIDED HEREIN, AND AN OPPORTUNITY FOR
HEARING UNDER THE RESPECTIVE CONSTITUTIONS AND LAWS OF THE UNITED STATES AND THE
COMMONWEALTH OF PENNSYLVANIA.

      GRAPHITE IRREVOCABLY AUTHORIZES AND EMPOWERS ANY ATTORNEY OR THE
PROTHONOTARY OR CLERK OF ANY COURT IN THE COMMONWEALTH OF PENNSYLVANIA, OR
ELSEWHERE, TO APPEAR FOR GRAPHITE AT ANY TIME AFTER DEFAULT UNDER THIS NOTE IN
ANY ACTION BROUGHT AGAINST GRAPHITE ON THIS NOTE AT THE SUIT OF HOLDER, AS OF
SUCH TERM, AND IN THAT ACTION TO CONFESS OR ENTER JUDGMENT AGAINST GRAPHITE FOR
THE ENTIRE UNPAID PRINCIPAL OF THIS NOTE AND ALL OTHER SUMS PAID BY HOLDER TO OR
ON BEHALF OF GRAPHITE PURSUANT TO THE TERMS OF THIS NOTE, AND ALL INTEREST
ACCRUED ON THOSE AMOUNTS, TOGETHER WITH COSTS OF SUIT, ATTORNEYS' COMMISSION FOR
COLLECTION OF FIVE PERCENT (5%) OF THE TOTAL AMOUNT THEN DUE BY GRAPHITE TO
HOLDER, TOGETHER WITH INTEREST ON ANY JUDGMENT OBTAINED BY HOLDER AT THE RATE OF
INTEREST SPECIFIED IN THE NOTE AFTER DEFAULT, INCLUDING INTEREST AT THAT RATE
FROM AND AFTER ANY SHERIFF'S OR JUDICIAL SALE UNTIL ACTUAL PAYMENT IS MADE TO
HOLDER OF THE FULL AMOUNT DUE HOLDER; AND FOR SO DOING THIS NOTE OR A COPY OF
THIS NOTE VERIFIED BY AFFIDAVIT SHALL BE A SUFFICIENT WARRANT. THE AUTHORITY
GRANTED IN THIS NOTE TO CONFESS JUDGMENT SHALL NOT BE EXHAUSTED BY ANY EXERCISE
OF IT BUT SHALL CONTINUE FROM TIME TO TIME AND AT ALL TIMES UNTIL PAYMENT IN
FULL OF ALL AMOUNTS DUE UNDER THIS NOTE.
<PAGE>

      Graphite is executing this Note on the date stated at the top of this
Note.

                                          GRAPHITE TECHNOLOGY GROUP, INC.

                                          By: /s/ James E. Olive
                                             --------------------------------
                                             James E. Olive
                                             PresidentSECOND AMENDED AND RESTATED SECURITY AGREEMENT

      SECOND AMENDED AND RESTATED SECURITY AGREEMENT dated as of March 10, 2006,
made by Graphite Technology Group, Inc., a Delaware corporation (the "Pledgor"),
in favor of BPK Resources, Inc., a Nevada corporation (the "Secured Creditor").

      WHEREAS, the Secured Creditor has agreed to make certain loans
(collectively, the "Loans") to the Pledgor in the aggregate principal amount of
up to Two Million Seven Hundred Fifty Thousand Dollars ($2,750,000.00), which is
evidenced by (i) a Promissory Note, dated December 28, 2005, (ii) a Promissory
Note, dated February 7, 2006 and (iii) a Promissory Note, dated the date hereof,
in each case, by Pledgor to the order of the Secured Creditor in the aggregate
principal amount of the Loans (collectively, the "Notes"); and

      WHEREAS, it is a condition precedent to the making of the Loans by the
Secured Creditor that the Pledgor shall have executed and delivered to the
Secured Creditor a pledge and security agreement providing for the pledge and
grant to the Secured Creditor of a security interest in the Pledgor's interest
in substantially all of its assets.

      NOW, THEREFORE, in consideration of the premises and the agreements herein
and in order to induce the Secured Creditor to make the Loans, the Pledgor
hereby agrees with the Secured Creditor as follows:

      SECTION 1. Pledge and Grant of Security Interest. As collateral security
for all of the Obligations (as defined in Section 3 hereof), effective as of
January 21, 2006, the Pledgor hereby pledges, assigns and grants to the Secured
Creditor, a continuing security interest in, general lien upon, and right to set
off against the Pledgor's right, title and interest in its machinery and
equipment located in its graphite processing plant at 106 Lakeside Avenue,
Delano, Pennsylvania 18220, including its ACM Milling System (the "Machinery and
Equipment"), and to all of its other assets including all of its Accounts,
Goods, Inventory, General Intangibles, Intellectual Property, Products and
Proceeds, as those terms are defined in the Uniform Commercial Code for the
Commonwealth of Pennsylvania (the "Pledged Collateral") .

      SECTION 2. Security for Obligations. The security interest created hereby
in the Pledged Collateral constitutes continuing collateral security for all of
the following obligations, whether now existing or hereafter incurred (the
"Obligations"):

            (a) the prompt payment by the Pledgor, as and when due and payable,
of all amounts owing by it in respect of the Loans and the Notes; and

            (b) the due performance and observance by the Pledgor of all of its
other obligations from time to time existing under this Agreement.

      SECTION 3. Covenants as to the Pledged Collateral. So long as any of the
Obligations shall remain outstanding, the Pledgor will, unless the Secured
Creditor shall otherwise consent in writing, which consent shall not be
unreasonably withheld:
<PAGE>

            (a) keep adequate records concerning the Pledged Collateral and
permit the Secured Creditor or any agents or representatives thereof at any
reasonable time and from time to time to examine and make copies of and
abstracts from such records;

            (b) at any time and from time to time, promptly execute and deliver
all further instruments and documents and take all further action that may be
necessary or desirable or that the Secured Creditor may request in order to (i)
perfect and protect the security interest created hereby; (ii) enable the
Secured Creditor to exercise and enforce its rights and remedies hereunder in
respect of the Pledged Collateral; or (iii) otherwise effect the purposes of
this Agreement; and (iv) Secured Creditor is authorized to file financing
statements relating to the Pledged Collateral without Pledgor's signature; and

            (c) not create or suffer to exist any additional lien, security
interest or other charge or encumbrance upon or with respect to any Pledged
Collateral except for the security interest created hereby, the previously
existing liens on the Pledged Collateral and the contemplated $625,000
Commonwealth of Pennsylvania DCED financing.

      SECTION 4. Ownership. Pledgor owns the Pledged Collateral. Except as set
forth in Schedule 4, the Pledged Collateral is free and clear of all liens,
security interests and claims, and Pledgor will keep the Collateral free and
clear from all liens, security interests and claims, other than as contemplated
by Section 3(c) above or those granted to or approved by Secured Creditor.

      SECTION 5. Additional Provisions Concerning the Pledged Collateral.

            (a) The Pledgor hereby authorizes the Secured Creditor to file,
without the signature of the Pledgor where permitted by law, one or more
financing or continuation statements, and amendments thereto, relating to the
Pledged Collateral.

            (b) The Pledgor hereby irrevocably appoints the Secured Creditor the
Pledgor's attorney-in-fact and proxy, with full authority in the place and stead
of the Pledgor and in the name of the Pledgor or otherwise, from time to time in
the Secured Creditor's discretion, to take any action and to execute any
instrument which the Secured Creditor may deem necessary or advisable to
accomplish the purpose of this Agreement.

            (c) The Pledgor represents and warrants to Secured Creditor that:
(i) it has duly obtained all authorizations, consents, rulings, approvals,
licenses, franchises, permits and certificates by or of all third parties to any
existing agreements or instruments by which Pledgor or any of the properties or
assets of Pledgor is or may be bound, which are required for the execution,
delivery and performance of the Notes, this Amended and Restated Security
Agreement, or the Option Agreements, and the consummation of the transactions
contemplated hereby or thereby, as applicable, and of or by all governmental
authorities and non-governmental administrative or regulatory agencies having
jurisdiction over Pledgor, its assets or properties, the Notes, this Amended and
Restated Security Agreement, the Option Agreements or the Pledged Collateral,
which are required for the execution, delivery and performance of the Notes,
this Amended and Restated Security Agreement or the Option Agreements and the
consummation of the transactions contemplated hereby or thereby, as applicable;
and (ii) neither the execution and delivery of the Notes, this Amended and
Restated Security Agreement or the Option Agreements by Graphite nor the
performance by Graphite of its obligations hereunder or thereunder as
applicable, will: (A) conflict with Pledgor's certificate of incorporation or
bylaws; (B) violate any statute, law, ordinance, rule or regulation, applicable
to Pledgor or any of the properties or assets of Pledgor; or (C) violate,
breach, be in conflict with or constitute a default (or an event which, with
notice or lapse of time or both, would constitute a default) under, or permit
the termination of any provision of, or result in the termination of, the
acceleration of the maturity of, or the acceleration of the performance of any
obligation of Pledgor, or result in the creation or imposition of any lien upon
any properties, assets or business of Pledgor under, any contract or any order,
judgment or decree to which Pledgor is a party or by which it or any of its
assets or properties is bound or encumbered.
<PAGE>

      SECTION 6. Remedies Upon Default. If any Event of Default under the Notes
shall have occurred and be continuing:

            (a) The Secured Creditor may, exercise in respect of the Pledged
Collateral, in addition to other rights and remedies provided for herein or
otherwise available to them, all of the rights and remedies of a secured party
on default as provided under the law of the Commonwealth of Pennsylvania, and
without limiting the generality of the foregoing and without notice except as
specified below, and subject to the previously existing liens on the pledged
collateral, sell the Pledged Collateral or any part thereof in one or more
parcels at public or private sale at such price or prices and on such other
terms as the Secured Creditor may deem commercially reasonable. The Pledgor
agrees that, to the extent notice of sale shall be required by law, at least 10
days' notice to the Pledgor of the time and place of any public sale or the time
after which any private sale is to be made shall constitute reasonable
notification. The Secured Creditor shall not be obligated to make any sale of
Pledged Collateral regardless of notice of sale having been given. The Secured
Creditor 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.

            (b) All cash proceeds received by the Secured Creditor in respect of
any sale of, collection from, or other realization upon, all or any part of the
Pledged Collateral may, in the discretion of the Secured Creditor, be held by
the Secured Creditor as collateral for, and/or then or at any time thereafter
applied in whole or in part by the Secured Creditor against, all or any part of
the Obligations pro rata as to the principal amount of the Loans and the Notes.
Any surplus of such cash or cash proceeds held by the Secured Creditor and
remaining after payment in full of all of the Obligations shall be paid over to
the Pledgor or to such person as may be lawfully entitled to receive such
surplus.

            (c) In the event that the proceeds of any such sale, collection or
realization are insufficient to pay all amounts to which the Secured Creditor is
legally entitled, the Pledgor shall remain liable for the deficiency and the
Secured Creditor shall retain all rights to collect on such Obligations provided
by applicable law.

      SECTION 7. Notices, Etc. All notices and other communications provided for
hereunder shall be in writing and shall be mailed, telegraphed or delivered, if
to the Pledgor, to it at 106 Lakeside Avenue, Delano, Pennsylvania 18220; and if
to the Secured Creditor, to it at 264 Union Boulevard, Totowa, New Jersey 07152;
or as to any of such parties at such other address as shall be designated by
such parties in a written notice to the other parties hereto complying as to
delivery with the terms of this Section 7. All such notices and other
communications shall be effective (i) if mailed, when deposited in the mails,
(ii) if telegraphed, when received, or (iii) if delivered, upon delivery.
<PAGE>

      SECTION 8. Miscellaneous.

            (a) No amendment of any provisions of this Agreement shall be
effective unless it is in writing and signed by the Pledgor and the Secured
Creditor, and no waiver of any provision of this Agreement, and no consent to
any departure by the Pledgor therefrom, shall be effective unless it is in
writing and signed by the Secured Creditor, and then such waiver or consent
shall be effective only in the specific instance and for the specific purpose
for which given.

            (b) No failure on the part of the Secured Creditor to exercise, and
no delay in exercising, any right hereunder shall operate as a waiver thereof;
nor shall any single or partial exercise of any such right preclude any other or
further exercise thereof or the exercise of any other right. The rights and
remedies of the Secured Creditor provided herein are cumulative and are in
addition to, and not exclusive of, any rights or remedies provided by law.

            (c) Any provision of this Agreement which is prohibited or
unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective
to the extent of such prohibition or unenforceability with invalidating the
remaining portions hereof or thereof or affecting the validity or enforceability
of such provision on any other jurisdiction.

            (d) This Agreement shall create a continuing security interest in
the Pledged Collateral and shall: (i) remain in full force and effect until the
payment in full or release of the obligations and (ii) be binding on the Pledgor
and its assigns and shall inure, together with all rights and remedies of the
Secured Creditor hereunder, to the benefit of the Secured Creditor and its
successors, transferees and assigns.

            (e) Upon the satisfaction in full of the Obligations, (i) this
Agreement and the security interest created hereby shall terminate and all
rights to the Pledged Collateral shall revert to the Pledgor, and (ii) the
Secured Creditor will, upon the Pledgor's request and at the Pledgor's expense,
(A) return to the Pledgor such of the Pledged Collateral as shall not have been
sold or otherwise disposed of or applied pursuant to the terms hereof and (B)
execute and deliver to the Pledgor such documents as the Pledgor shall
reasonably request to evidence such termination.

            (f) This Agreement shall be governed by and construed in accordance
with the law of the Commonwealth of Pennsylvania, except as required by
mandatory provisions of law and except to the extent that the validity and
perfection or the perfection and the effect of perfection or non-perfection of
the security interest created hereby, or remedies hereunder, in respect of any
particular Pledged Collateral are governed by the law of a jurisdiction other
than the Commonwealth of Pennsylvania.
<PAGE>

      IN WITNESS WHEREOF, the Pledgor has caused this Agreement to be executed
and delivered as of the date first above written.

                                          GRAPHITE TECHNOLOGY GROUP, INC.

                                          By: /s/ James E. Olive
                                             --------------------------------
                                             Name:  James E. Olive
                                             Title: President

                                          BPK RESOURCES, INC.

                                          By: /s/ Christopher H. Giordano
                                             --------------------------------
                                             Name:  Christopher H. Giordano
                                             Title: President

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