Document:

THIS DEBENTURE, AND THE SECURITIES INTO WHICH IT IS CONVERTIBLE (COLLECTIVELY,
THE "SECURITIES"), HAVE NOT BEEN REGISTERED WITH THE UNITED STATES SECURITIES
AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE. THE
SECURITIES ARE BEING OFFERED PURSUANT TO A SAFE HARBOR FROM REGISTRATION UNDER
REGULATION D PROMULGATED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
"ACT"). THE SECURITIES ARE "RESTRICTED" AND MAY NOT BE OFFERED OR SOLD UNLESS
THE SECURITIES ARE REGISTERED UNDER THE ACT, PURSUANT TO REGULATION D OR
PURSUANT TO AVAILABLE EXEMPTIONS FROM THE REGISTRATION REQUIREMENTS OF THE ACT
AND THE COMPANY WILL BE PROVIDED WITH OPINION OF COUNSEL OR OTHER SUCH
INFORMATION AS IT MAY REASONABLY REQUIRE TO CONFIRM THAT SUCH EXEMPTIONS ARE
AVAILABLE. FURTHER HEDGING TRANSACTIONS INVOLVING THE SECURITIES MAY NOT BE MADE
EXCEPT IN COMPLIANCE WITH THE ACT.

                             LASER ENERGETICS, INC.

                              Convertible Debenture

                                November___, 2007

No. CCP-001                                                          $250,000.00

      This Convertible Debenture is issued by Laser Energetics, Inc., a Florida
corporation (the "Company"), to TREY RESOURCES, INC. (together with its
permitted successors and assigns, the "Holder") pursuant to exemptions from
registration under the Securities Act of 1933, as amended.

                                   ARTICLE I.

      Section 1.01 Principal and Interest. For value received, on November 16,
2004, the Company hereby promises to pay to the order of the Holder in lawful
money of the United States of America and in immediately available funds the
principal sum of Two Hundred Fifty Thousand Dollars (US$250,000). This Debenture
bears interest at a rate of 3% per annum (computed on the basis of a 365-day
year and the actual days elapsed). At the Company's option, the entire principal
amount and all accrued interest shall be either (a) paid to the Holder on the
5th year anniversary from the date hereof or (b) converted in accordance with
Section 1.02 herein provided, however, that in no event shall the Holder be

<PAGE>

entitled to convert this Debenture for a number of shares of Class A Common
Stock (the "Common Stock") in excess of that number of shares of Common Stock
which, upon giving effect to such conversion, would cause the aggregate number
of shares of Common Stock beneficially owned by the Holder and its affiliates to
exceed 4.99% of the outstanding shares of the Common Stock following such
conversion (which provision may be waived by the Holder by written notice from
the Holder to the Company, which notice shall be effective 61 days after the
date of such notice). This limitation shall not apply to an automatic conversion
pursuant to Section 4.03 hereof.

      Section 1.02 Optional Conversion. The Holder is entitled, at its option,
to convert, and sell on the same day, at any time and from time to time, until
payment in full of this Debenture, all or any part of the principal amount of
the Debenture into shares (the "Conversion Shares") of the Company's Common
Stock, par value $0.01 per share ("Common Stock"), at a conversion price equal
to fifty percent (50%) of the average closing bid price of the Company's Class A
Common Stock, as quoted by Bloomberg, LP (the "ACBP"), during the four (4)
Trading Days immediately preceding the Conversion Date (as defined herein) once
the Company's Class A Common Stock is listed on the Principal Market. As used
herein, "Principal Market" shall mean The National Association of Securities
Dealers Inc.'s Over-The-Counter Bulletin Board, Nasdaq SmallCap Market, or
American Stock Exchange. No fraction of shares or scrip representing fractions
of shares will be issued on conversion, but the number of shares issuable shall
be rounded to the nearest whole share. To convert this Debenture, the Holder
hereof shall deliver written notice thereof, substantially in the form of
Exhibit "A" to this Debenture, with appropriate insertions (the "Conversion
Notice"), to the Company at its address as set forth herein. The date upon which
the conversion shall be effective (the "Conversion Date") shall be deemed to be
the date set forth in the Conversion Notice.

      Section 1.03 Reservation of Common Stock. The Company shall reserve and
keep available out of its authorized but unissued shares of Common Stock, solely
for the purpose of effecting the conversion of this Debenture, such number of
shares of Common Stock as shall from time to time be sufficient to effect such
conversion, based upon the Conversion Price. If at any time the Company does not
have a sufficient number of Conversion Shares authorized and available, then the
Company shall call and hold a special meeting of its stockholders within thirty
(30) days of that time for the sole purpose of increasing the number of
authorized shares of Common Stock.

      Section 1.04 Registration Rights. The Company is obligated to register the
resale of the Conversion Shares under the Securities Act of 1933, as amended.

      Section 1.05 Paying Agent and Registrar. Initially, the Company will act
as paying agent and registrar. The Company may change any paying agent,
registrar, or Company-registrar by giving the Holder not less than ten (10)
business days' written notice of its election to do so, specifying the name,
address, telephone number and facsimile number of the paying agent or registrar.
The Company may act in any such capacity.

      Section 1.06 Interest Payments. Accrued interest shall be paid at the time
of maturity or conversation to the person in whose name this Debenture is
registered. At the time such interest is payable, the Holder, in its sole
discretion, may elect to receive the interest in cash (via wire transfer or
certified funds) or in the form of Common Stock. In the event of default, as
described in Article III Section 3.01 hereunder, the Holder may elect that the
interest be paid in cash (via wire transfer or certified funds) or in the form

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<PAGE>

of common Stock. If paid in the form of Common Stock, the amount of stock to be
issued will be calculated as follows: the value of the stock shall be the
Conversion Price on: (i) the date the interest payment is due; or (ii) if the
interest payment is not made when due, the date the interest payment is made. A
number of shares of Common Stock with a value equal to the amount of interest
due shall be issued. No fractional shares will be issued; therefore, in the
event that the value of the Common Stock per share does not equal the total
interest due, the Company will pay the balance in cash.

                                  ARTICLE II.

      Section 2.01 Amendments and Waiver of Default. The Debenture may not be
amended. Notwithstanding the above, without the consent of the Holder, the
Debenture may be amended to cure any ambiguity, defect or inconsistency, or to
provide for assumption of the Company obligations to the Holder.

                                  ARTICLE III.

      Section 3.01 Events of Default. An Event of Default is defined as follows:
(a) failure by the Company to pay amounts due hereunder within fifteen (15) days
of the date of maturity of this Debenture; (b) failure by the Company's transfer
agent to issue freely tradeable Common Stock to the Holder within five (5) days
of the Company's receipt of the attached Notice of Conversion from Holder; (c)
failure by the Company for ten (10) days after notice to it to comply with any
of its other agreements in the Debenture; or (d) events of bankruptcy or
insolvency. Upon the occurrence of an Event of Default, the Holder may, in its
sole discretion, accelerate full repayment of all debentures outstanding and
accrued interest thereon or may, notwithstanding any limitations contained in
this Debenture, convert all debentures outstanding and accrued interest thereon
into shares of Common Stock pursuant to Section 1.02 herein.

                                  ARTICLE IV.

      Section 4.01 Rights and Terms of Conversion. This Debenture, in whole or
in part, may be converted at any time following the date of closing, into shares
of Common Stock at a price equal to the Conversion Price as described in Section
1.02 above.

      Section 4.02 Re-issuance of Debenture. When the Holder elects to convert a
part of the Debenture, then the Company shall reissue a new Debenture in the
same form as this Debenture to reflect the new principal amount.

      Section 4.03 Termination of Conversion Rights. The Holder's right to
convert the Debenture into the Common Stock in accordance with paragraph 4.01
shall terminate on the date that is the 5th year anniversary from the date
hereof and this Debenture shall be automatically converted on that date in
accordance with the formula set forth in Section 4.01 hereof, and the
appropriate shares of Common Stock and amount of interest shall be issued to the
Holder.

                                       3
<PAGE>

                                   ARTICLE V.

      Section 5.01 Anti-dilution. In the event that the Company shall at any
time subdivide the outstanding shares of Common Stock, or shall issue a stock
dividend on the outstanding Common Stock, the Conversion Price in effect
immediately prior to such subdivision or the issuance of such dividend shall be
proportionately decreased, and in the event that the Company shall at any time
combine the outstanding shares of Common Stock, the Conversion Price in effect
immediately prior to such combination shall be proportionately increased,
effective at the close of business on the date of such subdivision, dividend or
combination as the case may be.

                                  ARTICLE VI.

      Section 6.01 Notice. Notices regarding this Debenture shall be sent to the
parties at the following addresses, unless a party notifies the other parties,
in writing, of a change of address:

If to the Company, to:             Laser Energetics, Inc.
                                   3535 Quakerbridge Road - Suite 601
                                   Mercerville, NJ 08619
                                   Attention: Robert D. Battis
                                   Telephone: (609) 587-8250
                                   Facsimile: (609) 587-9315

With a copy to:                    Stark & Stark PC
                                   PO Box 5315
                                   Princeton, NJ 08543
                                   Attention: Rachel L. Stark, Esq.
                                   Telephone: (609) 895-7348
                                   Facsimile: (609) 895-7395

If to the Holder:                  Trey Resources, Inc.
                                   293 Eisenhower Parkway
                                   Livingston, New Jersey  07039
                                   Attention: Mark Meller

                                   Telephone:
                                   Facsimile:

      Section 6.02 Governing Law. This Debenture shall be deemed to be made
under and shall be construed in accordance with the laws of the State of New
Jersey without giving effect to the principals of conflict of laws thereof. Each
of the parties consents to the jurisdiction of the U.S. District Court sitting
in the District of the State of New Jersey or the state courts of the State of
New Jersey sitting in Hudson County, New Jersey in connection with any dispute
arising under this Debenture and hereby waives, to the maximum extent permitted
by law, any objection, including any objection based on forum non conveniens to
the bringing of any such proceeding in such jurisdictions.

                                       4
<PAGE>

      Section 6.03 Severability. The invalidity of any of the provisions of this
Debenture shall not invalidate or otherwise affect any of the other provisions
of this Debenture, which shall remain in full force and effect.

      Section 6.04 Entire Agreement and Amendments. This Debenture represents
the entire agreement between the parties hereto with respect to the subject
matter hereof and there are no representations, warranties or commitments,
except as set forth herein. This Debenture may be amended only by an instrument
in writing executed by the parties hereto.

      Section 6.05 Counterparts. This Debenture may be executed in multiple
counterparts, each of which shall be an original, but all of which shall be
deemed to constitute on instrument.

                                       5
<PAGE>

      IN WITNESS WHEREOF, with the intent to be legally bound hereby, the
Company as executed this Compensation Debenture as of the date first written
above.

                                             LASER ENERGETICS, INC.

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

                                       6
<PAGE>

                                   EXHIBIT "A"

                              NOTICE OF CONVERSION

        (To be executed by the Holder in order to Convert the Debenture)

TO:

      The undersigned hereby irrevocably elects to convert $ of the principal
amount of the above Debenture into Shares of Common Stock of Laser Energetics,
Inc., according to the conditions stated therein, as of the Conversion Date
written below.

Conversion Date:                           _____________________________________

Applicable Conversion Price:               _____________________________________

Signature:                                 _____________________________________

Name:                                      _____________________________________

Address:                                   _____________________________________

Amount to be converted:                   $_____________________________________

Amount of Debenture unconverted:          $_____________________________________

Conversion Price per share:               $_____________________________________

Number of shares of Common Stock to be
issued:                                   _____________________________________

Please issue the shares of Common Stock
in the following name and to the
following address:                        _____________________________________

Issue to:                                 _____________________________________

Authorized Signature:                     _____________________________________

Name:                                     _____________________________________

Title:                                    _____________________________________

Phone Number:                             _____________________________________

Broker DTC Participant Code:              _____________________________________

Account Number:                           _____________________________________

                                       A-1THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED.
MOREOVER, THIS NOTE IS NON-NEGOTIABLE AND, AS SUCH, NON-TRANSFERABLE. REGARDLESS
OF WHETHER THIS NOTE CONTINUES TO BE NON-NEGOTIABLE OR IS AMENDED TO BE
NEGOTIABLE, NO INTEREST IN THIS NOTE MAY BE OFFERED OR SOLD EXCEPT PURSUANT TO
(i) AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933, AS
AMENDED, OR (ii) AN EXEMPTION FROM REGISTRATION UNDER SAID ACT WHERE THE HOLDER
HAS FURNISHED TO THE COMPANY AN OPINION OF ITS COUNSEL REASONABLY SATISFACTORY
TO THE COMPANY THAT AN EXEMPTION FROM REGISTRATION UNDER SUCH ACT IS AVAILABLE.

                             LASER ENERGETICS, INC.

                         NON-NEGOTIABLE PROMISSORY NOTE

$100,000.00                                              As of December 14, 2004
                                                         Mercerville, New Jersey

            FOR VALUE RECEIVED, the undersigned, Laser Energetics, Inc., a
Florida corporation (the "Payor"), having its executive office and principal
place of business at 3535 Quaker Bridge Road, Suite 601, Mercerville, New Jersey
08619, hereby promises to pay John T. LiVecchi, M.D. (the "Payee"), on the
"Maturity Date" (as defined below) at the Payee's address as indicated by the
records of the Payor or, at such other place as the Payee shall hereafter
specify in writing, the principal sum of One Hundred Thousand Dollars
($100,000.00), or so much thereof as shall be advanced by the Payee to the
Payor, pursuant to the terms hereof, in such coin or currency of the United
States of America as at the time shall be legal tender for the payment of public
and private debts.

      1. Payment; Maturity Date.

            1.1. The Payor is a party to a certain financing transaction with
Cornell Capital Partners, LP pursuant to the Securities Purchase Agreement dated
November 19, 2004 between the Payor and Cornell Capital Partners, LP (the
"Cornell Agreement"). The entire unpaid principal amount of this Note, plus
interest on the unpaid principal balance of the Note in a fixed amount of
$10,000 (regardless of when the Maturity Date occurs), shall be paid by the
Payor to the Payee upon occurrence the "Second Closing" of the Cornell financing
(as defined in the Cornell Agreement) (the "Maturity Date").

            1.2. In no event shall the Payee be entitled to receive interest,
however characterized and including other consideration received in connection
with this Note, at an effective rate in excess of the maximum rate permitted by
law. In the event that a court of competent jurisdiction shall determine that
such amounts paid or agreed to be paid by the Payor in connection with this Note
causes the effective interest rate on this Note to exceed the maximum rate
permitted by law, such interest or other consideration shall automatically be
reduced to a rate which results in an effective interest rate under this Note
equal to the maximum rate permitted by law over the term hereof, and, in such
event, the Payee shall, at the Payee's sole and absolute discretion, either
apply to the reduction of the unpaid principal balance of this Note any amounts
received by it deemed to constitute excessive interest or refund such excess to
Payor.

<PAGE>

      2. Replacement of Note.

            2.1. In case this Note is mutilated, destroyed, lost or stolen, the
Payor shall, at its sole expense, execute, register and deliver, a new Note, in
exchange and substitution for this Note, if mutilated, or in lieu of and
substitution for this Note, if destroyed, lost or stolen. In the case of
destruction, loss or theft, the Payee shall furnish to the Payor indemnity
reasonably satisfactory to the Payor, and in the case of mutilation, the Payee
shall also furnish to the Payor evidence to its reasonable satisfaction of the
mutilation, destruction, loss or theft of this Note and of the ownership
thereof. Any replacement Note so issued shall be in the same outstanding
principal amount as this Note and dated the date to which interest shall have
been paid on this Note, or if no interest shall have yet been paid, dated the
date of this Note.

            2.2. Every Note issued pursuant to the provisions of Section 2.1
hereof in substitution for this Note shall constitute an additional contractual
obligation of the Payor, whether or not this Note shall be found at any time, or
be enforceable by anyone.

      3. Prepayment. At the option of the Payor, this Note may be prepaid in
whole at any time, or in part from time to time, without penalty or premium.
Except as set forth in Section 1.2 above, each partial prepayment of this Note
shall first be applied to interest accrued through the date of prepayment, and
then to outstanding principal.

      4. Events of Default. If any of the following conditions events or acts
shall occur:

            4.1. The dissolution of the Payor or any vote in favor thereof by
the Board of Directors and shareholders of the Company; or

            4.2. Upon the appointment of a trustee, receiver or custodian of all
or any part of the properties or assets of the Payor; upon an assignment for the
benefit of creditors by, the calling of a meeting of creditors of, or the
commencement of any proceeding under any bankruptcy laws of any state or of the
United States by the Payor, or the commencement of any proceeding under any
bankruptcy laws of any state or of the United States against the Payor; or

            4.3. The failure by the Payor to make any payment of any amount of
principal on, or accrued interest under, this Note, which failure shall continue
for a period of five (5) days, as and when the same shall become due and
payable; or

            4.4. The admission in writing of the Payor's inability to pay its
debts as they mature.

                                       2
<PAGE>

            5. Suits for Enforcement and Remedies. If Payor defaults in the
performance of any of the terms or provisions of this Note, or in any agreement
or document referred to herein, the principal sum or so much of the principal
remaining unpaid with all interest accrued thereon, shall, at the option of the
Payee, become due and payable immediately, and interest on the principal sum
shall be computed at the lesser of eighteen (18%) percent per annum or the
highest interest rate permitted to be charged by applicable law. If any one or
more defaults shall occur and be continuing, the Payee may proceed to protect
and enforce such Payee's rights either by suit in equity or by action at law, or
both, whether for the specific performance of any covenant, condition or
agreement contained in this Note, or in any agreement or document referred to
herein or in aid of the exercise of any power granted in this Note, or in any
agreement or document referred to herein, or proceed to enforce the payment of
this Note or to enforce any other legal or equitable right of the Payee of this
Note. No right or remedy herein or in any other agreement or instrument
conferred upon the holder of this Note is intended to be exclusive of any other
right or remedy, and each and every such right or remedy shall be cumulative and
shall be in addition to every other right and remedy given hereunder or now or
hereafter existing at law or in equity or by statute or otherwise.

      6. Unconditional Obligation; Fees, Waivers, Other.

            6.1. The obligations to make the payments provided for in this Note
are absolute and unconditional and not subject to any defense, set-off,
counterclaim, rescission, recoupment or adjustment whatsoever.

            6.2. If the Payee shall institute any action to enforce the
collection of any amount of principal of and/or interest on this Note, there
shall be immediately due and payable from the Payor, in addition to the then
unpaid sum of this Note, all reasonable costs and expenses incurred by the Payee
in connection therewith, including, without limitation, reasonable attorneys'
fees and disbursements, except in the event the action by Payee is not
meritorious.

            6.3. No forbearance, indulgence, delay or failure to exercise any
right or remedy with respect to this Note shall operate as a waiver, nor as an
acquiescence in any default, nor shall any single or partial exercise of any
right or remedy preclude any other or further exercise thereof or the exercise
of any other right or remedy.

            6.4. This Note may not be modified except by a writing duly executed
by the Payor and the Payee.

            6.5. The Payor hereby expressly waives demand and presentment for
payment, notice of nonpayment, notice of dishonor, protest, notice of protest,
bringing of suit, and diligence in taking any action to collect amounts called
for hereunder, and shall be directly and primarily liable for the payment of all
sums owing and to be owing herein, regardless of and without any notice,
diligence, act or omission with respect to the collection of any amount called
for hereunder or in connection with any right, lien, interest or property at any
and all times which the Payee had or is existing as security for any amount
called for hereunder.

                                       3
<PAGE>

            6.6. The Payee and Payor shall bear all of their own expenses,
including attorneys' fees incurred in connection with the execution,
preparation, delivery and negotiation of this Note.

      7. Restriction on Transfer. By its acceptance of this Note, the Payee
acknowledges that this Note is non-negotiable and, as such, non-transferable and
has not been registered under the securities laws of the United States of
America or any state thereof and represents that this Note has been acquired for
investment and, even if subsequently amended to be negotiable, no interest in
this Note may be offered for sale, sold, delivered after sale, transferred,
pledged, or hypothecated in the absence of registration and qualification of
this Note under applicable federal and state securities laws or an opinion of
counsel of the Payee reasonably satisfactory to the Payor that such registration
and qualification are not required.

      8. Miscellaneous.

            8.1. The headings of the various paragraphs of this Note are for
convenience of reference only and shall in no way modify any of the terms or
provisions of this Note.

            8.2. All notices required or permitted to be given hereunder shall
be in writing and shall be deemed to have been duly given when personally
delivered or three (3) days after being sent by registered or certified mail,
return receipt requested, postage prepaid, to the address of the intended
recipient as indicated by the records of the Payor or at such other address as
the intended recipient shall have hereafter given to the other party hereto
pursuant to the provisions hereof.

            8.3. This Note and the obligations of the Payor and the rights of
the Payee shall be governed by and construed in accordance with the laws of the
State of New Jersey with respect to contracts made and to be fully performed
therein.

            8.4. This Note shall bind the Payor and its successors and assigns.

                                       4
<PAGE>

      IN WITNESS WHEREOF, the undersigned have executed this Note as of the date
first written above.

                                               LASER ENERGETICS, INC.

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

                                                   /s/ JOHN T. LiVECCHI
                                                   -----------------------------
                                                      JOHN T. LiVECCHI, M.D.

                                       5

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