Document:

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                                                                    Exhibit 10.1

                              REVISED AND RESTATED
                              EMPLOYMENT AGREEMENT

         Agreement, made as of December 17, 1999, by and between Spectra Science
Corporation, a Delaware corporation (the "Company") and Nabil Lawandy (the
"Executive").

         Whereas, the Company entered into an Employment Agreement, dated August
23, 1996, with the Executive;

         Whereas, that Employment Agreement was purportedly revised and restated
pursuant to a document dated December 17, 1999;

         Whereas, that document did not embody the agreement of the parties as
of that date and contained other scrivener's errors; and

         Whereas, the parties wish to set forth their understanding and
agreement regarding the employment of the Executive by the Company.

         Now therefore, in consideration of the premises and mutual covenants
herein contained and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as
follows:

Section 1.  Employment Services.

         During the Employment Period (as defined herein), the Executive will
serve as the Company's Chief Executive Officer and Chief Technical Officer, and
will have such duties and responsibilities as would normally attach to those
positions, including such duties and responsibilities as are customary among
persons employed in similar capacities for similar companies, subject always to
the authority of the Board of Directors of the Company (the "Board"). The
Executive will faithfully and diligently carry out his duties and
responsibilities and comply with all of the reasonable and lawful directives of
the Board, to which the Executive will report. The Executive will, if so
elected, serve as a director of the Company and an officer or director of any
subsidiary or affiliate of the Company without compensation in addition to that
provided in this Agreement. For purposes of this Agreement, an "affiliate" of
the Company means any corporation, limited partnership, limited liability
company or other entity engaged in the same business as the Company, or a
related business, and which is controlled by or is under common control with the
Company.

Section 2.  Term.

         The Company shall employ the Executive, and the Executive accepts such
employment, continuing from the date first above written and ending at such time
as this Agreement has terminated under the provisions of Section 5 hereof (the
"Employment Period").

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Section 3.  Performance.

         During the Employment Period, the Executive shall devote his best
efforts and all of his business time and attention (except for vacation periods
and reasonable periods of illness or other incapacity) to the business of the
Company and its affiliates and will not engage in consulting work or in any
other trade or business for his own account or for or on behalf of any other
person, firm or corporation without the written consent of the Board of
Directors in each case, which shall not be granted if any such activity, in the
opinion of the Board of Directors, competes, conflicts or interferes with the
performance of his duties hereunder in any material way. The Executive shall
accept such office or offices to which he may be elected by the Board of
Directors of the Company. The Executive represents that he knows of no special
health factors which would adversely affect his insurability, and he will assist
the Company in all reasonable respects should the Company attempt to obtain a
"key man" life insurance policy covering the Executive.

Section 4.  Compensation and Benefits.

               (a)   Salary. For services to the Company rendered by the
         Executive in any capacity during the Employment Period, including
         without limitation, services as a manager, officer, director or member
         of any committee of the Company or of any subsidiary, affiliate or
         division thereof, the Company will pay or cause to be paid to the
         Executive a base salary at the rate of not less than $250,000 per annum
         (or such higher amount as the Compensation Committee of the Board may
         establish from time to time). The Executive's base salary for any
         partial year will be prorated based upon the number of days elapsed in
         such year. The Executive's base salary will be payable periodically in
         accordance with the Company's customary payroll practices for its
         executives. The term "base salary" shall not include any payment or
         other benefit which is denominated as or is in the nature of a bonus,
         incentive payment, profit-sharing payment, performance share award,
         stock option, stock appreciation right, retirement or pension accrual,
         insurance benefit, other fringe benefit or expense allowance, whether
         or not taxable to the Executive as income.

               (b)   Annual Performance Bonus. The Executive will be eligible to
         receive an annual performance bonus consisting of up to $75,000 in
         cash, and options (the "Annual Performance Options") to purchase up to
         75,000 shares of Common Stock of the Company (with the number of shares
         referenced herein being subject to adjustment from time to time to
         reflect stock splits, combinations, recapitalization and the like),
         under the Company's current Stock Option Plan as amended from time to
         time ("Option Plan"), in such amounts as to cash and options as may be
         determined by the Compensation Committee of the Board in its sole and
         absolute discretion. The Compensation Committee shall consider and make
         a bonus determination not later than 60 days after the end of each
         contract year during the Employment Period. Bonus awards shall be based
         upon superior performance by the Executive as measured against
         objective and reasonable criteria mutually agreed and approved in
         advance by the Executive, the Board of Directors and the Compensation
         Committee, which criteria may include but shall not be limited to
         considerations such as those set forth in Schedule 1 to this Agreement.
         Notwithstanding the foregoing, the Executive shall be entitled to the
         full Annual Performance Bonus for any year in which a Qualifying Sale,
         a Qualifying IPO, or a Qualifying Spin-out (as those terms are defined
         in Subsection (f) below) is closed. The

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         parties intend that the Annual Performance Options qualify as incentive
         stock options under relevant provisions of the Internal Revenue Code
         ("IRC"), and that the option exercise price be equal to the fair market
         value of a share of Common Stock of the Company on the date of issuance
         of the option, as determined by the Board of Directors of the
         Corporation in its sole discretion, unless a higher exercise price is
         required, by reason of the Executive's particular status or
         circumstances, in order for the option to qualify as an incentive
         option under the IRC as then in effect.

               (c)   Other Option Grants.

                     (1)   Grant in Lieu of Past Bonus Entitlements. In lieu of
         any past bonus awards for which the Executive was entitled to be
         considered, the Executive is hereby granted an incentive stock option
         ("Additional Incentive Option") under the Option Plan to purchase
         200,000 shares of Common Stock of the Company (the "Additional Option
         Shares") at $.50 per share. The Additional Incentive Option may only be
         exercised to the extent that it is vested. The Additional Incentive
         Option shall vest and become exercisable with respect to 20% of the
         Additional Option Shares on the last day of each year during the
         five-year period commencing on the date of this Agreement. Any unvested
         Additional Incentive Options shall vest and be immediately exercisable
         upon the occurrence of a Qualifying Sale, Qualifying IPO or Qualifying
         Spinout as defined below.

                     (2)   Nonqualified Stock Options. The Executive is hereby
         granted a non-qualified option (the "NSO Option") to purchase 550,000
         shares of the Company's Common Stock, at an exercise price of $.50 per
         share. The NSO Option may only be exercised to the extent that it is
         vested. If the Executive is employed by the Company on December 16,
         2004, NSO Option shall fully vest and become exercisable. Vesting will,
         however, be accelerated upon the closing of an IPO or Sale (or, as set
         forth below, in connection with certain transactions involving Spinout
         companies), but only as to such number of NSO Options determined as
         follows:

                     [This space intentionally left blank.]

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               If the overall value of the Company (the "Company Valuation"), as
               determined in the good faith judgment of the Board of Directors
               with principal reference to the terms of the IPO or Sale, is
               greater than the number set forth in the left hand column below,
               the number of NSO Options set forth in the right hand column
               opposite that number shall be deemed to have vested and be
               exercisable, and any balance of the NSO Options shall vest on
               December 16, 2004 (if the Executive is employed by the Company at
               that date):

<TABLE>
<CAPTION>
               ---------------------------------------------------------------------
                      Company Valuation            Aggregate Vested NSO Options

               ---------------------------------------------------------------------
               <S>                                 <C>
                     $100,000,000                    100,000 options vested
               ---------------------------------------------------------------------
                      150,000,000                    225,000 options vested
               ---------------------------------------------------------------------
                      200,000,000                    375,000 options vested
               ---------------------------------------------------------------------
                 More than $250,000,000              550,000 options vested
               ---------------------------------------------------------------------
</TABLE>

         If, during the term of this Agreement and prior to an IPO or Sale of
         the Company, the Company shall engage in a Spinout transaction and the
         subsidiary or affiliated Company which was the subject of the Spinout
         should thereafter (but prior to an IPO or Sale of the Company) be sold
         or should close an underwritten initial public offering of its Common
         Stock, then: (a) the Board of Directors shall determine in good faith
         the value of the Company's interest in the Spinout (the "Spinout
         Value") at the time of the sale or initial public offering; and (b)
         that Spinout Value shall be added to the Spinout Value determined with
         respect to any other subsequent Spinout. The Company Valuation for
         purposes of the chart set forth above and the vesting of NSO Options
         pursuant thereto shall include any Spinout Values, and NSO Options
         shall be vested from time to time prior to an IPO or Sale of the
         Company as and if aggregate Spinout Values equal or exceed the
         thresholds set forth in the left-hand column of the chart.

               (d)   Split Dollar Life Insurance. If the Executive is employed
         by the Company under this Agreement immediately following the closing
         of the Company's IPO (as defined below), the Executive may obtain at
         that time, and the Company shall pay the premiums as set forth below
         on, a so-called "split dollar" whole life insurance policy (the
         "Policy") covering the Executive, with an initial coverage amount of
         death benefit not in excess of $2,000,000 which Policy shall be owned
         by the Executive. The Policy may be payable to a beneficiary or
         beneficiaries of the Executive's choosing. The Policy terms shall
         provide for fully-paid coverage with ten (10) guaranteed level annual
         premiums. Dividends will be applied to the purchase of paid-up
         additions. The Company will pay each annual premium (not to exceed
         $110,000 per year) which comes due during the Employment Period, less
         the cost of the lower of (i) the premium for a comparable amount of
         nonconvertible term life insurance or (ii) the rates set forth in
         Internal Revenue Service Table P.S. 58, in either case, the payment of
         which shall be the responsibility of the Executive. If the annual
         premium payable by the Company for the Policy exceeds $110,000, the
         Executive may elect to pay the excess premium or reduce the coverage
         amount so that the Company's premium will not exceed $110,000. If the
         Executive is uninsurable at the time the Policy would be purchased, the
         Company's obligation to pay premiums hereunder shall be void. The
         Company shall be entitled to repayment of one hundred (100%) percent of
         the total amount of premiums paid by it upon the Executive's death,
         surrender or termination of the Policy, or the expiration of

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         the Company's obligation to pay the premiums hereunder, whichever first
         occurs. The Policy will be collaterally assigned to and held by the
         Company as security until full reimbursement of premiums to it has been
         made. The collateral assignment shall be in a form reasonably
         acceptable to the Company. While the collateral assignment is in
         effect, the Executive shall not withdraw or borrow against the value of
         the Policy any amount which would reduce the aggregate surrender value
         of the Policy to less than the amount of the premiums then paid by the
         Company. The Company's obligation to continue payment of premiums shall
         terminate upon its termination of the Executive's employment with the
         Company for Cause, or upon termination by the Executive of his
         employment other than as a result of a material breach of this
         Agreement by the Company or in connection with a Deemed Termination
         Event (as set forth in Section 5(b) hereof). In the event that the
         Executive's employment hereunder is terminated by the Company without
         Cause, or by the Executive in connection with a Deemed Termination
         Event or because of material breach hereof by the Company, and the
         Policy is in place on the date of termination, the Company shall prepay
         to the Policy issuer the balance of any guaranteed premiums at the net
         present value thereof, and will be entitled to retain the Policy as
         collateral until reimbursement in full as provided herein has been
         made.

               (e)   Other Benefits. In addition to the compensation described
         in this Section 4, and such other amounts, not constituting base
         salary, as may be provided to the Executive from time to time by the
         Board, the Executive will be entitled during the Employment Period to
         participate in any retirement plans, bonus plans, welfare benefit plans
         and other employee benefit plans of the Company that may be in effect
         from time to time with respect to executives of the Company generally,
         to the extent the Executive is eligible under the terms of those plans.

               (f)   Definitions. An "IPO" shall mean the initial underwritten
         public offering and sale of the Company's Common Stock registered under
         the Securities Act of 1933. A "Sale" shall mean the sale of all or
         substantially all of the Company's assets for cash or securities (other
         than in connection with a Spinout, or pursuant to a license of the
         Company's technology not undertaken as part of a sale of all or
         substantially all of the Company's other assets), or a merger or
         combination with or into another entity which results in more than 50%
         of the ownership interests of the Company being owned by persons or
         entities who were not shareholders of the Company immediately prior to
         closing of the transaction. A "Spinout" shall mean the creation by the
         Company of a subsidiary or affiliated company, to which some portion of
         the Company's assets are transferred, with the intention that the
         subsidiary or affiliate company will be financed and operated
         separately from the Company although owned in part by the Company
         and/or its Shareholders. A "Qualified" IPO, Sale, or Spinout shall be
         any such transaction in which the holders of the Company's Preferred
         Stock have, in the aggregate, in the opinion of a majority of the Board
         of Directors of the Company (Mr. Lawandy abstaining), received on
         account of their equity interest in the Company, in cash or marketable
         securities, an amount equal to their investment in the Company plus a
         return on that investment at least equal to the average annual returns
         realized on an investment in the S&P 500 over the three year period
         ending on the closing date of the relevant IPO, Sale or Spinout.

               (g)   Cashless Exercise. The terms of all of the options issued
         to the Executive by the Company pursuant to this Agreement shall permit
         the Executive to

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         exercise the options in whole or in part by assigning and surrendering
         to the Company, for no additional consideration, shares of Common Stock
         of the Company which have been owned by the Executive for at least six
         months prior to the date of assignment, the fair market value of those
         shares (as determined in good faith by the Board of Directors) shall be
         credited by the Company against payment of the applicable option
         exercise price.

               (h)   Stock in Spinout Companies. Prior to the initiation of any
         Spinout, the Company's Board of Directors will consider what option or
         other equity compensation arrangements covering Common Stock of the
         Spinout company should be granted or put in place in favor of the
         Executive and any other employees of the Company who may be involved
         initially with the business of the Spinout company. The Company will
         use its best efforts to implement any such arrangements recommended by
         the Board of Directors. The Company will also attempt to ensure that
         any option shares thereafter issued by the Spinout company to the
         Executive after the Spinout has become a reporting company under the
         Securities and Exchange Act of 1934, to the extent that the sale of
         those shares is not covered by an effective registration statement on
         Form S-8 (or its then equivalent), will be covered by "piggy back"
         registration rights no less favorable to the Executive than similar
         rights granted to the investors in the Spinout company's last private
         financing prior to its initial public offering.

               (i)   Deferred Compensation. The Company shall, for a period of
         ten (10) years commencing immediately following the closing of the
         Company's IPO (as defined herein) and continuing thereafter from year
         to year, accrue the sum of $55,000 annually, as deferred compensation
         for the benefit of the Executive (the "Deferred Compensation"). The
         accrual shall be effective as of the first day of each twelve (12)
         month period commencing with the closing of the Company's IPO and each
         anniversary of said date. The Company shall not be obligated to set
         aside any funds or assets of the Company for the purpose of paying said
         Deferred Compensation nor shall any interest accrue on the amount of
         Deferred Compensation accrued in each such twelve (12) month period. If
         not paid prior thereto, the Company shall pay the total amount of the
         Deferred Compensation to the Executive at the end of the tenth (10th)
         such twelve (12) month period following the Company's IPO. If not paid
         prior thereto, the Company shall pay the then accrued Deferred
         Compensation to the beneficiary(ies) of the Executive in the event of
         the death of the Executive. If not paid prior thereto, in the event
         that the Executive's employment hereunder is terminated by the Company
         without Cause, or by the Executive in connection with a Deemed
         Termination Event or because of material breach hereof by the Company,
         the remaining amount of the Deferred Compensation that would have
         accrued for the benefit of the Executive hereunder for the remainder of
         the ten (10) year period shall be determined utilizing the net present
         value thereof (as determined by the Company utilizing reasonable
         actuarial and interest rate assumptions) and said amount shall be added
         to the amount of the Deferred Compensation previously accrued. Payment
         shall be made to the Executive if he is alive on the payment date, to
         his legal representative if he is alive on the payment date and a legal
         representative has been appointed for him, or to his beneficiary or
         beneficiaries if he is not alive on the payment date. The Executive may
         designate a beneficiary or beneficiaries in a written designation of
         beneficiary delivered to the Company prior to his death which
         beneficiary or beneficiaries shall be entitled to receive said Deferred
         Compensation when it is payable. If there is no designated beneficiary,
         said Deferred Compensation shall be

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         payable to the surviving spouse of the Executive, if any, and in the
         absence of a surviving spouse, to the Estate of the Executive. In
         making the payment of Deferred Compensation provided for in this
         Agreement, the Company may make such payment (subject to any applicable
         law requiring withholding for tax or other purposes) in cash or by
         transferring any asset then held by the Company in an amount equal to
         the amount of the Deferred Compensation, including, without limitation,
         by forgiving any obligation owed to the Company by the Executive. In
         the event that the Company sets aside any funds, assets or other
         property to provide for the Company's ability to meet its obligations
         hereunder, such funds, assets or other property shall be and remain
         general unrestricted assets of the Company, shall not be considered as
         security for any obligation of the Company hereunder and shall be
         subject to the claims of the general unsecured creditors of the Company
         until paid over to the Executive.

Section 5.  Termination.

         Notwithstanding the provisions of Section 2 of this Agreement, but
subject to the provisions of Section 6 hereof, the Executive's employment
hereunder shall terminate under the following circumstances:

               (a)   Death or Disability. This Agreement shall terminate upon
         the death or disability of the Executive. "Disability" shall mean that
         the Executive is no longer able to perform the essential functions of
         the chief executive officer and chief technical officer of the Company
         for a continuous period of six (6) months or a total of nine (9) months
         in any one-year period. If any question arises as to whether the
         Executive has been so disabled, the Executive shall submit to an
         examination by a physician selected by the Board of Directors of the
         Company to whom the Executive has no reasonable objection, and
         following such examination, the physician shall submit to the Company
         and to the Executive a report in reasonable detail setting forth his or
         her opinion as to whether the Executive was so disabled. Such report
         shall for the purposes of this Agreement be conclusive of the issue.
         Notwithstanding the foregoing, in the event of a disability (as defined
         above), the Company shall take no action that violates the applicable
         provisions of the Americans With Disabilities Act.

               (b)   Termination by the Company without Cause. The Company may
         at any time by action of a majority of the entire membership of its
         Board of Directors terminate the Executive's employment without Cause
         (as defined below) by giving the Executive notice of the effective date
         of termination (which effective date may be the date of such notice)
         (the "Date of Termination"). A voluntary termination by the Executive
         within sixty (60) days after the Company has reduced his status,
         materially reduced his responsibilities or materially reduced his
         salary in a manner not applied to all executive officers of the Company
         (a "Deemed Termination Event") will be deemed to be termination by the
         Company without Cause. The Executive will provide ten (10) days prior
         written notice to the Company of any such voluntary termination by
         reason of a Deemed Termination Event, and during such 10-day period the
         Company shall have an opportunity to cure the Deemed Termination Event.
         If a cure is effected within such 10-day period, the provisions of this
         Section 5(b) shall no longer be applicable with respect to the Event so
         cured. If the Company shall terminate (or shall be deemed to have
         terminated) the Executive without Cause hereunder, any unvested options
         granted

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         hereunder shall be immediately forfeited, and the Company shall have
         the obligation to pay the Executive the following:

                     (i)    Through the Date of Termination, the Company shall
         pay the Executive his full base salary at his then current annual rate
         of pay, and continue the benefits in effect at the time notice of
         termination is given.

                     (ii)   The Company shall pay the Executive, as a severance
         payment, an amount equal to (a) 150% of his then current annual base
         salary plus (b) the maximum cash portion of the Executive's Annual
         Performance Bonus under Section 4(b) hereof, one-half of which
         aggregate amount shall be payable in a lump sum (less required
         withholding) on or about the Date of Termination, and the balance of
         which shall be payable in equal installments during the 18 months
         following the Date of Termination at such times as salary payments
         would normally have been made hereunder if a termination under this
         section had not occurred.

                     (iii)  The Company shall pay the amount required under
         Section 4(d) hereof on account of the "split dollar" insurance policy
         referenced therein, if that policy is in effect on the Date of
         Termination.

                            Anything in this Section 5(b) to the contrary
         notwithstanding, in the event that the Executive breaches any of the
         representations, warranties and covenants set forth in Section 6, or in
         the Noncompetition, Nondisclosure and Inventions Agreement referenced
         therein (the "Nondisclosure and Inventions Agreement") in any material
         respect, the Company will have no further obligation to make payments
         under this subsection (b) following knowledge of such breach and may
         pursue all other available remedies. In the event that the Company
         shall fail to make any payment required to be made under Section 5(b)
         hereof, and such failure is not cured within thirty (30) days after
         receipt of written notice thereof from the Executive, the Executive
         will have no further obligation under Sections 1 and 4 of the
         Nondisclosure and Inventions Agreement.

               (c)   Termination by the Company for Cause. The Company shall
         have the right to terminate the Executive's employment effective
         immediately for any of the following reasons (each of which is referred
         to herein as "Cause") by giving the Executive written notice which
         specifically identifies the Cause in reasonable detail:

                     (i)    the willful breach of any provision of Section 3
         (including but not limited to a continuing refusal to follow reasonable
         and lawful directives of the Board) or of the Nondisclosure and
         Inventions Agreement;

                     (ii)   any act of intentional fraud or dishonesty with
         respect to any aspect of the Company's or any affiliate's business;

                     (iii)  continued use of illegal drugs;

                     (iv)   as a result of the Executive's gross negligence or
         willful misconduct, the Executive shall violate, or cause the Company
         to violate, any applicable federal or state securities or banking law
         or regulation and as a result of such violation, shall become, or shall
         cause the Company or any affiliate to become, the subject of any

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         legal action or administrative proceeding seeking an injunction from
         further violations or a suspension of any right or privilege;

                     (v)   as a result of the Executive's gross negligence or
         willful misconduct, the Executive shall commit any act that causes, or
         shall knowingly fail to take reasonable and appropriate action to
         prevent, any material injury to the financial condition or business
         reputation of the Company or any affiliate; or

                     (vi)  indictment for a felony.

         If the Executive's employment is terminated by the Company pursuant to
         this Section 5(c), then (1) the Company shall have no further
         obligations hereunder accruing from and after the effective date of
         termination and shall have all other rights and remedies available
         under this or any other agreement and at law or in equity; (2) the
         Company shall be entitled to collect the cash surrender value of the
         Split Dollar Policy, and the Executive shall forthwith reimburse the
         Company for all premiums paid by the Company for the Split Dollar
         Policy in excess of the cash surrender value realized by the Company,
         and (3) any unvested options granted hereunder shall immediately
         expire.

               (d)   Termination by the Executive. The Executive may terminate
         this Agreement at any time upon sixty (60) days prior written notice to
         the Company. The Board of Directors of the Company may in such event
         elect to waive the period of notice, or any portion thereof, in which
         event the Executive's date of termination shall be that date within the
         sixty (60) day notice period determined by the Board. Upon termination
         of this Agreement by the Executive for any reason other than a material
         breach of this Agreement by the Company, or the occurrence of a Deemed
         Termination Event under Subsection 5(b) hereof: (1) the Company shall
         have no further obligations hereunder accruing from and after the
         effective date of termination; (2) the Company's rights with respect to
         the Split Dollar Policy shall be the same as provided in Section 5(c)
         hereof in the case of Termination by the Company for Cause; and (3) any
         unvested options hereunder shall immediately expire.

Section 6.  Noncompetition, Nondisclosure and Inventions.

         The Executive agrees that as a condition of his employment he will
reaffirm simultaneously herewith and be bound by the terms of a Noncompetition,
Nondisclosure and Inventions Agreement (the "Nondisclosure and Inventions
Agreement") in substantially the form set forth as Exhibit A hereto, the terms
of which are incorporated herein by reference. The Executive's obligations under
the Nondisclosure and Inventions Agreement shall survive the termination of this
Agreement as set forth therein. For purposes of the Nondisclosure and Inventions
Agreement only, the Executive shall be deemed to be an employee of the Company
following termination of this Agreement as long as the Executive is entitled to
and is receiving payments under Section 5(b) hereof.

Section 7.  Conflicting Agreements.

         The Executive hereby warrants and covenants that his employment by the
Company will not result in a breach of the terms, conditions or provisions of
any agreement to which the

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Executive is subject, and that he has not made and will not make any agreements
in conflict with this Agreement.

Section 8.  Successors and Assigns.

         This Agreement is intended to bind and inure to the benefit of and be
enforceable by the Executive and the Company, except that the Executive may not
assign any of his rights or obligations under this Agreement and the Company may
not assign any of its rights or obligations under this Agreement except as
provided in the following sentence. The Company may assign its rights under this
Agreement, as security, to any lender to the Company, and in the event of a sale
of all of the stock, or substantially all of the stock, of the Company, or
consolidation or merger of the Company with or into another corporation or
entity, or the sale of substantially all of the operating assets of the Company
to another corporation, entity or individual, the Company may assign its rights
and obligations under this Agreement to its successor-in-interest provided that
such successor-in-interest shall have assumed all obligations of the Company
hereunder by written agreement with the Executive.

Section 9.  Severability.

         Whenever possible, each provision of this Agreement will be interpreted
in such manner as to be effective and valid under applicable law, but if any
provision of this Agreement is held to be invalid, illegal or unenforceable in
any respect under applicable law or rule in any jurisdiction, such invalidity,
illegality or unenforceability will not affect such provision in any other
jurisdiction, but this Agreement will be reformed, construed and enforced in
such jurisdiction as if such invalid, illegal or unenforceable provision had
never been contained herein. Any court having jurisdiction shall have the power
to reduce the duration, area or scope of any invalid, illegal or unenforceable
provision relating to the noncompetition portion of the Executive's
Nondisclosure and Inventions Agreement in order to render such provision valid
and enforceable.

Section 10. Notice.

         Any notice provided for in this Agreement must be in writing and must
be either personally delivered, mailed by first class mail (postage prepaid and
return receipt requested), sent by facsimile transmission or sent by reputable
overnight courier service, to the recipient at the address indicated below:

                    To the Company:

                    Spectra Science Corporation
                    321 South Main Street, Suite 102
                    Providence, RI  02903

                    To the Executive:

                    169 Eastwick Road
                    North Kingstown, RI  02885

or to such other address or to the attention of such other person as the
recipient party shall have specified by prior written notice to the sending
party. Any notice under this Agreement will be deemed to have been given when so
delivered or sent or if mailed, five days after so mailed.

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Section 11.  Amendments and Waivers.

         Any provision of this Agreement may be amended or waived only with the
prior written consent of the Executive and a majority of the Board of Directors
of the Company other than the Executive. Notwithstanding the foregoing, the
failure of either party to require the performance of any term or obligation of
this Agreement, or the waiver by either party of any breach of this Agreement,
shall not prevent any subsequent enforcement of such term or obligation or be
deemed a waiver of any subsequent breach.

Section 12.  Entire Agreement.

         This Agreement embodies the complete agreement and understanding
between the parties and supersedes and preempts any prior understandings,
agreements or representations by or between the parties, written or oral, which
may have related to the subject matter hereof in any way. Any employment,
benefit or bonus arrangements or agreements between the Company and the
Executive that existed at any time prior to the execution and delivery of this
Agreement are hereby terminated by the Executive; provided, however, that the
Executive shall remain liable for any breach of such arrangements or agreements
occurring during the term of such arrangement or agreement. From and after the
date of this Agreement, the Executive shall not be entitled to any compensation
from the Company on account of any such arrangement or agreement.

Section 13.  Governing Law.

         All questions concerning the construction, validity and interpretation
of this agreement will be governed by the internal law, and not the law of
conflicts, of Rhode Island.

Section 14.  Remedies.

         Each of the parties to this Agreement will be entitled to enforce his
or its rights under this Agreement specifically, to recover damages (including,
without limitation, reasonable fees and expenses of counsel) by reason of any
breach of any provision of this Agreement and to exercise all other rights
existing in his or its favor. The parties hereto agree and acknowledge that
money damages may not be an adequate remedy for any breach or threatened breach
of the provisions of this Agreement and that any party may in his or its sole
discretion apply to any court of law or equity of competent jurisdiction for
specific performance and/or injunctive relief in order to enforce or prevent any
violations of the provisions of this Agreement.

Section 15.  Captions.

         The captions set forth in this Agreement are for convenience only, and
shall not be considered as part of this Agreement or as in any way limiting or
amplifying the terms and provisions hereof.

                                      -11-

<PAGE>

         In witness whereof, the parties have signed, sealed and delivered this
Agreement as of the date first above written.

                                           SPECTRA SCIENCE CORPORATION

                                           By: /s/ Roland Puton
                                               ---------------------------------

                                           EXECUTIVE:

                                           /s/ Nabil M. Lawandy
                                           -------------------------------------
                                           Nabil Lawandy

                                      -12-

<PAGE>

                                   Schedule 1
                                       to
                              Employment Agreement
                                     between
                  Nabil Lawandy and Spectra Science Corporation

--------------------------------------------------------------------------------

.. Intellectual property: Expansion of the existing portfolio in areas strategic
  to the Company's future growth, including licensing and sales.

.. Collaborations and spin-offs executed and immediate possibilities for.

.. Revenue streams, growth positioning in core areas.

.. Sale of equity at levels indicating an increased valuation.

<PAGE>

                                    Exhibit A

             NONCOMPETITION, NONDISCLOSURE AND INVENTIONS AGREEMENT

     The undersigned, in consideration and as a condition of my employment with
Spectra Acquisition Corp. (the "Company"), does hereby agree with the Company as
follows:

     1. During the period of my employment by the Company, and for a period of
twelve (12) months after the termination of my employment, I agree that I will
not (i) interfere with the relationship between the Company or any of its
affiliates and any of their respective employees, agents or representatives,
(ii) directly or indirectly interfere with the relationship between the Company
or any of its affiliates and the Company's customers, collaborators or joint
venturers, dealers, distributors, vendors or sources of supply, and (iii)
directly or indirectly own, manage, operate or control, or be employed by,
participate in or be connected in any manner with the ownership, management,
operation or control of, any business or enterprise engaged in any specific
business activity in which the Company has been involved during the term of my
employment (except such activity as the Board of Directors has in writing
advised me that it does not intend to pursue), or in the commercial applications
of (a) laser light generation with the use of scattering media for feedback; (b)
glass-based micro-patterning using laser light or (c) quantum dot phosphor
technology.

     2. The Company shall have the right, subject to applicable law, acting
reasonably and in good faith, to inform any third party that the Company
believes to be participating, or to be contemplating participating, with me or
receiving assistance from me in violation of this Agreement, of the terms of
this Agreement and of the rights of the Company hereunder, and that
participation by any such third party with me in activities in violation of this
Agreement may give rise to claims by the Company against such third party.

     3. I understand that my relationship with the Company and its officers and
employees is one of trust and confidence, and that during the period of my
employment I may acquire or may have already acquired, knowledge of, or access
to, information which relates to the business, operations or plans of the
Company which is not known to the general public (hereinafter "Confidential
Information"). Confidential Information may include, but is not limited to, all
know-how and proprietary information of the Company relating to the research,
development, utilization, manufacture and use of any of its intellectual
property or products, and information about Company's business operations,
including, by way of illustration, the Company's investment plans or strategies,
budgets, costs, trade secrets, customer or vendor lists, customer, vendor or
consultant contracts and the details thereof, pricing policies, operational
methods, information about products, marketing and merchandising plans or
strategies, business acquisition plans, personnel acquisition plans, and all
other information pertaining to the business of the Company or any affiliate
that is not publicly available. I will not at any time, whether during or after
the termination of my employment, reveal to any person, association or company
any Confidential Information of the Company so far as it has come or may come to
my knowledge, except as may be required in the ordinary course of performing my
duties as an employee of the Company or except as may be in the public domain
through no fault of mine, and I will keep secret all matters entrusted to me and
shall not use or attempt to use any such Confidential Information in any manner
which may injure or cause loss or may be reasonably

<PAGE>

expected to injure or cause loss, whether directly or indirectly, to the
Company. My obligation of confidentiality under this paragraph shall terminate
five (5) years after the termination of my employment with the Company.

     Further, I agree that during my employment I shall not make, use or permit
to be used any notes, memoranda, records, files, computer programs, data,
laboratory notebooks or any other materials of any nature relating to any matter
within the scope of the business of the Company or concerning any of its
dealings or affairs otherwise than for the benefit of the Company. I further
agree that I shall not, after the termination of my employment, use or permit to
be used, any such notes, memoranda, records, files, computer programs, data,
laboratory notebooks or other materials, it being agreed that any of the
foregoing shall be and remain the sole and exclusive property of the Company and
that immediately upon the termination of my employment I shall deliver all of
the foregoing, and all copies thereof, to the Company, at its main office.

     4. I will not at any time during the twelve (12) month period following the
termination of my employment with the Company solicit or encourage any employee
of the Company to terminate his or her employment in order to work for a
business which competes or intends to compete with the Company and I will use my
best efforts to ensure that my then employer does not do so.

     5. (a) I acknowledge that any improvements or inventions made by me either
alone or with others during my employment by the Company or made thereafter as a
result of any invention conceived or work done during my employment by the
Company so far as the same relate to the Company's business, products, processes
and developments, and all my right, title and interest in and to the same shall
be deemed as made and held by me in a fiduciary capacity and solely for the
benefit of the Company, shall not be disclosed to others without its written
consent and shall be the sole and exclusive property of the Company.
Notwithstanding the foregoing, I expect to maintain some professional connection
with Brown University which may involve supervision of Brown University
employees or students under sponsored research programs at Brown. Any inventions
made by me in the course of any such activities will belong to Brown University
under the terms of its customary agreement with sponsors and investigators,
although any right to inventions which I may retain free of any claims from
Brown University or its sponsors or investigators shall be subject to the first
sentence of this paragraph 5(a). I will inform the Board of Directors of any
such arrangement in detail, and will not become involved in any such sponsored
research programs which are directed toward areas in which the Company is
commercially involved without prior written approval from the Board of Directors
in each specific case.

        (b) I shall disclose promptly and fully to the Company and to its
attorneys all such improvements and inventions and shall, upon their request,
surrender to them all tangible evidence of said improvements and inventions.

        (c) I, when requested so to do either during or after my employment,
shall

               i.  assign and convey to the Company my entire right, title and
interest in and to such improvements and inventions;

                                      A-2

<PAGE>

               ii.  assist the Company and its agents in preparing patent
applications, United States and foreign, covering the same;

               iii. sign and deliver all such applications and assignments of
the same to the Company; and

               iv.  generally give all information and testimony, sign all
papers and do all things which may be needed or requested by the Company, to the
end that the Company may obtain, extend, reissue, maintain and enforce United
States and foreign patents covering such improvements and inventions.

          (d) I understand that the Company will bear all expenses which it
causes to be incurred in obtaining, extending, reissuing, maintaining and
enforcing such patents and in vesting and perfecting title thereto in the
Company, and will pay me for any time which it may require of me therefor
subsequent to the termination of my employment, such payment to be at an hourly
rate equivalent to that at which I am paid during my employment by the Company

     6. I understand that this Agreement, while it relates to certain terms and
conditions of my employment, does not create an obligation on the part of the
Company or any other person to continue my employment. In the event of the
termination of my employment, I acknowledge that my experience and capabilities
are such that I can obtain employment in a business other than that in which the
Company is engaged.

     7. I further represent that my performance of all of the terms of this
Agreement and as an employee of the Company does not and will not breach any
agreement to maintain in confidence proprietary information acquired by me in
confidence or in trust prior to my employment by the Company. I have not entered
into, and I agree that I will not enter into, any agreement, either written or
oral, in conflict herewith.

     8. I agree that any breach of this Agreement by me could cause irreparable
damage and that in the event of such breach the Company shall have, in addition
to any and all remedies of law, the right to an injunction, specific performance
or other equitable relief to prevent the violation of my obligations hereunder.

     9. Any waiver by the Company of a breach of any portion of this Agreement
shall not operate or be construed as a waiver of any subsequent breach thereof.

                                      A-3

<PAGE>

     10. Whenever possible, each provision of this Agreement will be interpreted
in such manner as to be effective and valid under applicable law, but if any
provision of this Agreement is held to be invalid, illegal or unenforceable in
any respect under any applicable law or rule in any jurisdiction, such
invalidity, illegality or unenforceability will not affect such provision in any
other jurisdiction, but this Agreement will be reformed, construed and enforced
in such jurisdiction as if such invalid, illegal or unenforceable provision had
never been contained herein. Any court having jurisdiction shall have the power
to reduce the duration, area or scope of any invalid, illegal or unenforceable
provision relating to the noncompetition portion of this Agreement in order to
render such provision valid and enforceable in its reduced form.

     11. My obligations under this Agreement shall survive the termination of my
employment in accordance with the foregoing provisions regardless of the manner
of such termination and shall be binding upon my heirs, executors and
administrators.

     12. I understand that my obligations under this Agreement will extend to
any other organization which succeeds to the business of the Company by reason
of any sale, merger or similar action.

     IN WITNESS WHEREOF, the undersigned has executed this Agreement as of the
23rd day of August 1996.

                                                       _________________________
                                                       Nabil Lawandy

                                      A-4<PAGE>

                                                                    Exhibit 10.2

                     AMENDED AND RESTATED RESEARCH AGREEMENT

     This AMENDED AND RESTATED RESEARCH AGREEMENT (this "Agreement"), dated as
of March 15, 2001, is between SPECTRADISC CORPORATION, a Delaware corporation
("SpectraDisc"), and SPECTRA SCIENCE CORPORATION, a Delaware corporation
("Spectra Science").

     Whereas, pursuant to a Technology Transfer Agreement, dated June 30, 1999,
by and between SpectraDisc and Spectra Science (the "Original Technology
Transfer Agreement"), Spectra Science granted to SpectraDisc, and SpectraDisc
had acquired from Spectra Science, an exclusive license to certain patent rights
and technology to develop and commercialize single play DVDs and CDs;

     Whereas, SpectraDisc and Spectra Science have amended and restated the
Technology Transfer Agreement as of the date hereof to provide development
rights and a license with respect to limited-play digital media that is adapted
to be read by optical means, including enhancements, applications, processes and
technologies related thereto (for example, CDs, DVDs, LDs, and similar
technologies and processes);

     Whereas, SpectraDisc engaged Spectra Science to perform, and Spectra
Science provided, research and development services upon the terms and
conditions of a certain Research Agreement, dated June 30, 1999 (the "Original
Research Agreement");

     Whereas, Spectra Science has certain research and development experience
and has the facilities, equipment and employees to permit it to carry out
research and development activities on behalf of SpectraDisc;

     Whereas, Spectra Science also has certain resources that would allow it to
provide certain management services to SpectraDisc; and

     Whereas, SpectraDisc wishes to retain Spectra Science to provide research
and development services and to provide such general financial and managerial
services under the terms and conditions set forth in this Agreement, and Spectra
Science agrees to and accepts such arrangement.

     Now therefore, in consideration of the foregoing premises and for other
good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, Spectra Science and SpectraDisc hereby agree as follows.

Section 1.  Definitions. As used herein, capitalized terms shall have the
respective meanings set forth below.

     1.1    "Affiliate" of a Person shall mean a Person that directly (or
indirectly through one or more intermediaries) Controls, is Controlled by or is
under common Control with such Person.

     1.2    "Amended and Restated Technology Transfer Agreement" shall mean the
Amended and Restated Technology Transfer Agreement, dated as of March 15, 2001,
by and between Spectra Science and SpectraDisc, as amended, modified or
supplemented from time to time.

                                     Amended and Restated Research Agreement -1-

<PAGE>

     1.3    "Benchmark" shall mean the development of processes, technology and
equipment meeting or allowing a user of such to meet the Specifications.

     1.4    "Confidential Information" shall mean all Technology disclosed by
Spectra Science to SpectraDisc pursuant to this Agreement, the Original
Technology Transfer Agreement, or the Amended and Restated Technology Transfer
Agreement.

     1.5    "Control" (and, with correlative meanings, the terms "Controlled by"
and "under common Control with") shall mean the possession of the power to
direct or cause the direction of the management and policies of such Person,
whether through the ownership of voting stock, by contract or otherwise. In the
case of a corporation "control" shall mean, among other things, the direct or
indirect ownership of more than 50% of its outstanding voting stock.

     1.6    "Force Majeure" shall mean any Act of God, any accident, explosion,
fire, storm, earthquake, flood, drought, peril of the sea, riot, embargo, war or
foreign, federal, state or municipal order of general application, seizure,
requisition or allocation, any failure or delay of transportation, shortage of
or inability to obtain supplies, equipment, fuel or labor or any other
circumstances or event beyond the reasonable control of the party relying upon
such circumstance or event.

     1.7    "Person" shall mean any individual, partnership, corporation, firm,
association, unincorporated organization, joint venture, trust or other entity.

     1.8    "Product" or "Products" shall have the meaning set forth in the
Amended and Restated Technology Transfer Agreement.

     1.9    "Specifications" shall mean the technology, manufacturing, packaging
and quality control specifications or requirements of Panasonic Disc Services
Corporation or an equivalent major disc replicator regarding the creation and
mass production of commercially viable single- or limited-play CDs and DVDs.

     1.10   "Spectra Science Technology" shall have the meaning set forth in the
Amended and Restated Technology Transfer Agreement.

     1.11   "Spectra Science Special Technology" shall have the meaning set
forth in the Amended and Restated Technology Transfer Agreement.

     1.12   "SpectraDisc Field" shall have the meaning set forth in the Amended
and Restated Technology Transfer Agreement.

     1.13   "SpectraDisc Improvements" shall have the meaning set forth in the
Amended and Restated Technology Transfer Agreement.

     1.14   "Technology" shall have the meaning set forth in the Amended and
Restated Technology Transfer Agreement.

Section 2.  Research and Development; Management Services.

     2.1    Research and Development Services. SpectraDisc hereby engages
Spectra Science, and Spectra Science hereby agrees to undertake research and
development in connection with the production of technology, processes,
materials and equipment necessary for the manufacturing by SpectraDisc of
Products that meet the

                                     Amended and Restated Research Agreement -2-

<PAGE>

Specifications (the "Research and Development"). Such services shall be provided
as follows:

                                     Amended and Restated Research Agreement -3-

<PAGE>

            2.1.1  Research and Development; Hardware.

                   (i)  During the term of this Agreement, Spectra Science shall
use commercially reasonable efforts to conduct the Research and Development on
behalf of SpectraDisc in a prudent, skillful and diligent manner. Spectra
Science shall furnish all labor, supervision, services, supplies and materials
necessary to perform the Research and Development as contemplated in the
SpectraDisc budget (including the schedules thereto) annexed hereto as Exhibit
A.

                   (ii) Spectra Science shall arrange for SpectraDisc to
purchase, and SpectraDisc agrees to purchase from third parties, the necessary
hardware components for the manufacturing unit to be developed by Spectra
Science hereunder (the "Hardware") at the lowest commercially available price.

            2.1.2 Other Activities; Subcontracts. During the term of this
Agreement, Spectra Science shall devote such time and effort to the performance
of services pursuant to this Agreement as may be necessary or appropriate to
fulfill its duties as described in this Section 2.1; provided, however, it is
specifically understood and agreed by SpectraDisc that Spectra Science shall not
be required to devote itself, on a full time basis, to the provision of such
services and that Spectra Science shall have the right to engage in its own
research and development activities and in other business activities with other
Persons, and SpectraDisc shall not, by virtue of this Agreement, have any right,
title or interest in or to such independent activities or to the income or
profits derived therefrom and, without limiting Spectra Science's obligation to
use commercially reasonable efforts to provide certain services hereunder,
nothing set forth in this Agreement shall limit or reduce the ability of Spectra
Science to carry on such other activities. SpectraDisc acknowledges and agrees
that, in performing the Research and Development, Spectra Science may (at no
additional cost to SpectraDisc beyond the fees set forth in Section 3 hereof),
and is hereby authorized to, without the prior consent of SpectraDisc, engage or
agree or otherwise collaborate with other Persons, including, without
limitation, Affiliates of Spectra Science, to provide assistance in carrying out
the Research and Development.

            2.1.3 Reports and Records. Spectra Science will provide to
SpectraDisc monthly a reasonably detailed report setting forth (a) a summary of
the Research and Development, (b) a description of any material developments
(whether positive or negative) with respect to the Research and Development, and
(c) the estimated time and expenses necessary to complete the Research and
Development. Spectra Science will keep regular laboratory notebook records
documenting its research and development efforts on behalf of SpectraDisc. Such
notebook will be regularly signed and dated in the ordinary course by the
individual or individuals engaged in such research and development efforts and
witnessed by other individuals who understand the research and development.

            2.1.4 License to Technology for Development. SpectraDisc hereby
grants to Spectra Science an exclusive (against SpectraDisc and all other
Persons), worldwide, royalty-free license, including the right to license or
sublicense to other Persons, to employ and engage in any and all uses of the
Technology owned or licensed by Disc, and the SpectraDisc Improvements solely
for purposes of permitting Spectra Science to perform its duties hereunder,
including, without limitation, the activities described in Section 2.1.2 hereof.
The foregoing license shall terminate upon termination or expiration of this
Agreement. The foregoing license is granted in addition

                                     Amended and Restated Research Agreement -4-

<PAGE>

to, and not in substitution for, any other rights of Spectra Science in the
Technology owned or licensed by Disc and the SpectraDisc Improvements whether
pursuant to the Amended and Restated Technology Transfer Agreement or otherwise.

            2.1.5 (Intentionally Omitted)

            2.1.6 Disclaimer of Warranties. Spectra Science cannot and does not
guarantee that the Research and Development will be successful in whole or in
part, that any materials useful in manufacturing the Product will be developed
or that any developed materials will meet SpectraDisc's or any third party's
needs in manufacturing the Products. To the extent that Spectra Science has
complied with Section 2.1.1 hereof and has not otherwise breached its specific
representations, warranties and covenants contained herein, the failure of
Spectra Science to successfully develop any materials will not in and of itself
constitute a breach by Spectra Science of any representation, warranty, covenant
or other obligation under this Agreement or the Amended and Restated Technology
Transfer Agreement. Spectra Science disclaims all warranties, whether express or
implied, with respect to the Hardware, including warranties of THE HARDWARE'S
merchantability, fitness for a particular purpose, and non-infringement.

            2.1.7 Title to Improvements. All right, title and interest to any
intellectual property or improvements developed pursuant to this Amended and
Restated Research Agreement shall be governed by the provisions of the Amended
and Restated Technology Transfer Agreement.

     2.2    Management Services.

            2.2.1 Services Provided.

     (i)  Spectra Science will provide persons acting in the capacity of
SpectraDisc's Chief Executive Officer, Chief Technical Officer, and Chief
Financial Officer functions (specifically, those functions set forth on Schedule
2.2 to this Agreement) including, without limitation except as set forth below,
all business and general administrative and general accounting services,
materials, supplies and office facilities to SpectraDisc as contemplated on
Exhibit A annexed hereto, in consideration for the payments set forth in Section
3.1.2 of this Agreement (the "Management Services"), it being understood that
this is a turn-key contract, that SpectraDisc will not in and of itself have
offices or employees available to perform such services and that SpectraDisc
shall not be responsible for any expenses or other charges other than the
payments set forth in Section 3 and its own expenses for purchases of capital
equipment, marketing or business development consultants, legal fees,
independent auditor fees and patent maintenance costs.

     (ii) Spectra Science shall at all times maintain comprehensive liability
and workers' compensation insurance and shall obtain a vendor's broad form
endorsement policy which shall name SpectraDisc as an additional insured.

            2.2.2 Indemnification.

     (i)  SpectraDisc shall defend, indemnify and hold Spectra Science and its
affected directors, officers, employees and agents harmless against any claim,
action or loss (including reasonable attorneys' fees and other expenses,
collectively, "Loss") to which

                                     Amended and Restated Research Agreement -5-

<PAGE>

Spectra Science or such Persons may be subject insofar as a Loss arises out of
or relates, directly or indirectly, to the rights, obligations, or performance
of SpectraDisc under this Section 2.2; provided that the action or inaction of
SpectraDisc or its employees or agents giving rise to such Loss was undertaken
in good faith and in a manner that it reasonably believed to be in or not
opposed to the best interests of SpectraDisc and did not result from any
negligent act or omission on the part of Spectra Science.

     (ii) Spectra Science shall defend, indemnify and hold SpectraDisc and its
affected directors, officers, employees and agents harmless against any Loss to
which SpectraDisc or such Persons may be subject insofar as such Loss arises out
of or relates, directly or indirectly, to the rights, obligations, or
performance of Spectra Science under this Section 2.2; provided that the action
or inaction of Spectra Science or its employees or agents giving rise to such
Loss was not undertaken in good faith and in a manner that a reasonably prudent
person would believe to be in or not opposed to the best interests of
SpectraDisc or resulted from any negligent act or omission on the part of
Spectra Science.

            2.2.3 Other Activities; Subcontracts. During the term of this
Agreement, Spectra Science shall devote such time and effort to the performance
of services pursuant to this Agreement as may be necessary or appropriate to
fulfill its duties as described in this Section 2.2; provided, however, it is
specifically understood and agreed by SpectraDisc that Spectra Science shall not
be required to devote itself, on a full time basis, to the provision of such
services and that Spectra Science shall have the right to engage in its own
activities and in other business activities. SpectraDisc acknowledges and agrees
that, in providing the Management Services, Spectra Science may (at no
additional cost to SpectraDisc beyond the fees set forth in Section 3 hereof),
and is hereby authorized to, without the prior consent of SpectraDisc, engage or
agree or otherwise collaborate with other Persons, including, without
limitation, Affiliates of Spectra Science, to provide assistance in performing
the Management Services.

3.   Payment for Services; Timing of Payments.

     3.1    Payments.

            3.1.1 R&D and Hardware Fees.

                  (i)   In consideration for the services to be provided by
Spectra Science pursuant to Section 2.1 of this Agreement, SpectraDisc shall pay
to Spectra Science US$47,750 per month (the "R&D Fees"), due and payable in
arrears on the first business day of each month; provided, however, that the
fees hereunder will be increased by 5% of the then applicable annual R&D Fees
hereunder upon each one year extension of this Agreement.

                  (ii)  In further consideration for the services to be provided
by Spectra Science pursuant to Section 2.1 of this Agreement, SpectraDisc agrees
to pay to Spectra Science US$382,000 in one lump sum upon delivery of a
manufacturing unit meeting the Specifications (the "Incentive Fee"); provided,
however, that in the event a manufacturing unit meeting the Specifications is
delivered to SpectraDisc prior to the one year anniversary date of this
Agreement, the Incentive Fee will be reduced by one-

                                     Amended and Restated Research Agreement -6-

<PAGE>

twelfth for every month after the date of such delivery and before the one year
anniversary of this Agreement.

            3.1.2 Management Fees. In consideration for the Management Services
to be provided by Spectra Science pursuant to Section 2.2 of this Agreement,
SpectraDisc shall pay to Spectra Science US$17,958.33 per month (the "Management
Fees"), due and payable in arrears on the first business day of each month;
provided, however, that the Management Fees will be increased by 5% of the then
applicable annual Management Fees upon each one year extension of this
Agreement.

     3.2    Costs Absorbed by Spectra Science. In the event that (i) SpectraDisc
has expended all but US$150,000 of the funds raised in connection with its sale
of its Series B Preferred Stock, par value $.01, and (ii) Spectra Science has
not met or achieved the Benchmark and delivered the manufacturing unit meeting
the Specifications to SpectraDisc, Spectra Science shall waive the R&D Fees and
the Management Fees arising during such period, up to a maximum of US$250,000
(based upon the fee structure set forth in Sections 3.1.1 and 3.1.2.).

Section 4.  Representations and Warranties.

     4.1    Representations, Warranties and Covenants of Spectra Science.
Spectra Science represents and warrants as of the date of this Agreement, as
follows:

     (i)    it is a corporation duly organized, validly existing and in good
standing under the laws of the State of Delaware with corporate powers adequate
for executing, delivering and performing its obligations under, this Agreement;

     (ii)   the execution, delivery and performance of this Agreement have been
duly authorized by all necessary corporate action on the part of Spectra
Science;

     (iii)  this Agreement has been duly executed and delivered by Spectra
Science and is a legal, valid and binding obligation of Spectra Science,
enforceable against Spectra Science in accordance with its terms; and

     (iv)   the execution, delivery and performance of this Agreement do not and
will not conflict with or contravene any provision of the charter documents or
by-laws of Spectra Science or any agreement, document, instrument, indenture or
other obligation of Spectra Science.

     4.2    Representations, Warranties and Covenants of SpectraDisc.
SpectraDisc represents and warrants as of the date of this Agreement, as
follows:

     (i)    it a corporation duly organized, validly existing and in good
standing under the laws of the State of Delaware with corporate powers adequate
for executing, delivering and performing its obligations under, this Agreement;

     (ii)   the execution, delivery and performance of this Agreement have been
duly authorized by all necessary corporate action on the part of SpectraDisc;

     (iii)  this Agreement has been duly executed and delivered by SpectraDisc
and is a legal, valid and binding obligation of SpectraDisc, enforceable against
SpectraDisc in accordance with its terms; and

                                     Amended and Restated Research Agreement -7-

<PAGE>

     (iv)   the execution, delivery and performance of this Agreement do not and
will not conflict with or contravene any provision of the charter documents or
by-laws of SpectraDisc or any agreement, document, instrument, indenture or
other obligation of SpectraDisc.

Section 5.  Confidentiality.

     5.1    Confidential Information. Any party receiving Confidential
Information hereunder shall maintain the confidential and proprietary status of
such Confidential Information, keep such Confidential Information and each part
thereof within its possession or under its control sufficient to prevent any
activity with respect to the Confidential Information that is not specifically
authorized by this Agreement, use all commercially reasonable efforts in each
case to prevent the disclosure of any Confidential Information to any other
Person. Such restrictions shall not apply to any Confidential Information which
is (a) independently developed by the receiving party outside the scope of this
Agreement or the Amended and Restated Technology Transfer Agreement, (b) in the
public domain at the time of its receipt or thereafter becomes part of the
public domain through no fault of the receiving party, (c) received without an
obligation of confidentiality from a third party having the right to disclose
such information, (d) released from the restrictions of this Section 5.1 by the
express written consent of the other party hereto, (e) disclosed to any
permitted assignee, permitted sublicensee or permitted subcontractor of a party
hereunder or under the Amended and Restated Technology Transfer Agreement (if
such assignee, sublicensee or subcontractor is subject to the provisions of this
Section 5.1 or comparable provisions of other documents), or (f) required by
law, statute, rule or court order to be disclosed (the disclosing party shall,
however, use commercially reasonable efforts to obtain confidential treatment of
any such disclosure).

     5.2    Permitted Disclosures. Notwithstanding the provisions of Section 5.1
hereof, Spectra Science and SpectraDisc may, to the extent necessary, except as
may be otherwise provided in the Amended and Restated Technology Transfer
Agreement, disclose and use Confidential Information consistent with the rights
of Spectra Science and SpectraDisc otherwise granted hereunder or under the
Amended and Restated Technology Transfer Agreement, for the purpose of securing
patent protection for an invention as permitted by such agreement if the party
hereto disclosing such Confidential Information uses commercially reasonable
efforts to obtain an agreement from the recipient of such information to
preserve the confidentiality thereof upon terms reasonably equivalent to those
set forth herein; provided, however, that in each such instance the other party
hereto shall have been notified of the permitted disclosure.

6.   Disclaimer of Warranty; Consequential Damages.

     6.1    Nothing in this Agreement shall be construed as a representation
made or warranty with respect to intellectual property matters, or that any
Spectra Science Technology, Spectra Science Special Technology, or SpectraDisc
Improvements will not infringe the patent or proprietary rights of any other
Person. In addition, except as expressly set forth in Section 4.1 hereof,
SpectraDisc acknowledges that THE SPECTRA SCIENCE TECHNOLOGY AND SPECTRA SCIENCE
SPECIAL TECHNOLOGY, IS LICENSED "AS IS," AND SPECTRA SCIENCE EXPRESSLY

                                     Amended and Restated Research Agreement -8-

<PAGE>

DISCLAIMS AND SPECTRADISC HEREBY WAIVES, RELEASES AND RENOUNCES ANY WARRANTY,
EXPRESS OR IMPLIED, WITH RESPECT TO THE SPECTRA SCIENCE TECHNOLOGY AND SPECTRA
SCIENCE SPECIAL TECHNOLOGY, AND THE SPECTRADISC IMPROVEMENTS INCLUDING, WITHOUT
LIMITATION, ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE.
NEITHER PARTY TO THIS AGREEMENT SHALL BE ENTITLED TO RECOVER FROM THE OTHER ANY
SPECIAL, INCIDENTAL, CONSEQUENTIAL OR PUNITIVE DAMAGES.

     6.2    Damages; Legal Fees. In the event that Spectra Science materially
breaches its obligations under the terms of this Agreement, Spectra Science and
SpectraDisc agree that SpectraDisc would suffer damages that may be difficult to
determine. Accordingly, in the event of a suit by SpectraDisc on such a claim,
Spectra Science agrees that, if such a breach is found by a court of competent
jurisdiction, SpectraDisc may, at its option (i) elect to receive liquidated
damages in the amount one million dollars (US$1,000,000) in lieu of proving
actual damages, or (ii) seek actual damages without limitation. In the event of
litigation between the parties with respect to this Agreement the loosing party
shall indemnify and hold harmless the prevailing party for the legal and expert
witness fees and expenses in connection with such litigation, including the
legal fees and expenses to enforce this indemnification.

7.   Term and Termination.

     7.1    Term. This Agreement shall be effective as of the date hereof and
shall continue in force or effect for a period of one year thereafter (the
"Term"), unless earlier terminated by mutual agreement of the parties or as
provided in Section 7.2 or 7.3 hereof; provided, however, that this Agreement
will be extended for successive one year periods (each, a "Successive Term")
unless notice is given by a party hereunder of such party's intention not to
extend this Agreement no later than 90 days prior to the end of such Term or
Successive Term, as applicable; provided, however, that during the Successive
Term this Agreement may be terminated as provided in Section 7.2 or 7.3.

     7.2    Termination by Spectra Science. Spectra Science shall have the right
to terminate this Agreement, effective immediately upon written notice of
termination to SpectraDisc, in the event that SpectraDisc fails to perform or
observe or otherwise breaches any of its material obligations under this
Agreement and such failure or breach continues for a period of 60 days after
receipt by SpectraDisc of written notice thereof to SpectraDisc from Spectra
Science.

     7.3    Termination by SpectraDisc. SpectraDisc shall have the right to
terminate this Agreement at any time effective upon ten days' prior written
notice of termination to Spectra Science.

     7.4    Effect of Termination. Sections 2.1.1, 5, 6, 7.4, 8, 10, 11, 15 and
16 of this Agreement, and all obligations to pay any amounts due hereunder,
shall survive, and shall not be affected by, any termination of this Agreement
pursuant to this Section 7.

Section 8. No Implied Waivers; Rights Cumulative.

                                     Amended and Restated Research Agreement -9-

<PAGE>

No failure on the part of Spectra Science or SpectraDisc to exercise and no
delay in exercising any right, power, remedy or privilege under this Agreement,
or provided by statute or at law or in equity or otherwise, including, without
limitation, the right or power to terminate this Agreement, shall impair,
prejudice or constitute a waiver of any such right, power, remedy or privilege
or be construed as a waiver of any breach of this Agreement or as an
acquiescence therein, nor shall any single or partial exercise of any such
right, power, remedy or privilege preclude any other or further exercise thereof
or the exercise of any other right, power, remedy or privilege.

Section 9.   Force Majeure.

Each party shall be excused for any failure or delay in performing any of its
obligations under this Agreement, other than the obligations of either party to
make any payments to the other party hereunder, if such failure or delay is
caused by Force Majeure.

Section 10.  Relationship of the Parties.

Nothing contained in this Agreement is intended, or is to be construed, to
constitute Spectra Science and SpectraDisc as partners or joint venturers or
Spectra Science as an employee of SpectraDisc. Neither party hereto shall have
any express or implied right or authority to assume or create any obligations on
behalf of or in the name of the other party or to bind the other party to any
contract, agreement or undertaking with any third party.

Section 11.  Notices.

All notices, requests and other communications to Spectra Science or SpectraDisc
hereunder shall be in writing (including telecopy or similar electronic
transmissions), shall refer specifically to this Agreement and shall be
personally delivered or sent by telecopy or other electronic facsimile
transmission (with confirmation of receipt) or by registered mail or certified
mail, return receipt requested, postage prepaid, in each case to the respective
address specified below (or such other address as may be specified in writing to
the other party hereto):

                         Spectra Science Corporation
                         321 South Main Street
                         Suite 102
                         Providence, RI 02903
                         Attention: President

                         SpectraDisc Corporation
                         321 South Main Street
                         Suite 102
                         Providence, RI 02903
                         Attention: President

                    With copies to:

                                    Amended and Restated Research Agreement -10-

<PAGE>

                         Herrick, Feinstein LLP
                         2 Park Avenue
                         New York, New York 10016
                         Attn: Michael Heitner

                         Hollinger Digital, Inc.
                         1825 K Street N.W.
                         Washington, D.C. 20006
                         Attn: Richard Perle

Any notice or communication given in conformity with this Section 11 shall be
deemed to be effective when received by the addressee, if delivered by hand,
telecopy or other facsimile transmission and three days after mailing, if
mailed.

Section 12.  Further Assurances.

Each of Spectra Science and SpectraDisc agrees to duly execute and deliver, or
cause to be duly executed and delivered, such further instruments and do and
cause to be done such further acts and things, including, without limitation,
the filing of such additional assignments, agreements, documents and
instruments, that may be necessary or as the other party hereto may at any time
and from time to time reasonably request in connection with this Agreement or to
carry out more effectively the provisions and purposes of, or to better assure
and confirm unto such other party its rights and remedies under, this Agreement.

Section 13.  Successors and Assigns.

The terms and provisions of this Agreement shall inure to the benefit of, and be
binding upon, Spectra Science, SpectraDisc, and their respective successors and
assigns; provided, however, that neither Spectra Science nor SpectraDisc may
assign or otherwise transfer any of its rights and interests, nor delegate any
of its respective obligations, hereunder without the prior written consent of
the other party hereto (which consent may not be unreasonably withheld);
provided further, however, that Spectra Science and Spectra Disc may, without
consent, fully assign its rights and interest, and delegate its obligations,
hereunder, effective upon written notice thereof, to (a) an Affiliate if such
Affiliate assumes all of the obligations of the assignor hereunder and this
Agreement remains binding upon Spectra Science and Spectra Disc, as the case may
be, or (b) to any Person which acquires all or substantially all of the assets
of Spectra Science or SpectraDisc or which is the surviving Person in a merger
or consolidation with such party. Any attempt to assign or delegate any portion
of this Agreement in violation of this Section 13 shall be null and void.
Subject to the foregoing, any reference to Spectra Science or SpectraDisc
hereunder shall be deemed to include the successor thereto and assigns thereof.

                                    Amended and Restated Research Agreement -11-

<PAGE>

Section 14.  Amendments.

No amendment, modification, waiver, termination or discharge of any provision of
this Agreement, nor consent to any departure by Spectra Science or SpectraDisc
therefrom, shall in any event be effective unless the same shall be in writing
specifically identifying this Agreement and the provision intended to be
amended, modified, waived, terminated or discharged and signed by Spectra
Science and SpectraDisc, and each amendment, modification, waiver, termination
or discharge shall be effective only in the specific instance and for the
specific purpose for which given. No provision of this Agreement shall be
varied, contradicted or explained by any oral agreement, course of dealing or
performance or any other matter not set forth in an agreement in writing and
signed by Spectra Science and SpectraDisc.

Section 15.  Governing Law; Venue.

This Agreement shall be governed by and construed in accordance with the laws of
the State of Delaware. Any suit or proceeding arising out of or relating to this
Agreement will be heard exclusively in the federal or state courts sitting in
Providence, Rhode Island. To the extent that the Uniform Computer Information
transactions Act applies to any of the intellectual property addressed herein,
the application of such act to the interpretation, enforcement and construction
of this Agreement is rejected.

Section 16.  Restrictive Covenant.

For the duration of this Agreement and indefinitely thereafter, Spectra Science
and Nabil Lawandy, individually, and Affiliates Controlled by either or both
them, each severally covenant that he, she, or it shall not compete directly or
indirectly, with SpectraDisc in the SpectraDisc Field nor in any business in
which Spectra Disc may engage relative to the production, commercialization, or
development of Products, CDs DVDs or LDs (such restricted businesses being
collectively referred to herein as the "Business"), nor shall he, she, or it,
directly or indirectly, license or otherwise grant or sell property rights
(including, but not limited to, Technology) to any party other than SpectraDisc
for the purpose of engaging in the Business; provided, however, that in the
event all or substantially all of the assets of Spectra Science are acquired,
whether by sale, merger, consolidation or otherwise, to a Person (the
"Purchaser") who, prior to such transaction was, directly or indirectly, engaged
in competition with Spectra Disc in the Business, then this restrictive covenant
shall not apply with respect to the activities of such Purchaser as they existed
on the date of such acquisition or to the extent that the assets of Spectra
Science are not used in furtherance of competition in the Business after such
transfer.

Nabil Lawandy acknowledges that (i) SpectraDisc is engaged and in the future
will be engaged in the Business, (ii) he is one of the limited number of persons
who developed or is currently developing SpectraDisc's Business, (iii) his
services to SpectraDisc were and are special and unique, (iv) SpectraDisc's
Business is national and international in scope, (v) SpectraDisc would not have
been able to raise equity capital from Hollinger Digital Inc. on the date hereof
but for the agreements and covenants contained in this Section 16, (vi) he has
the means to support himself and his dependants other than engaging in the
Business and the provisions of this Section 16 will not impair such

                                    Amended and Restated Research Agreement -12-

<PAGE>

ability, and (vii) the provisions and of his Section 16 are essential to protect
the business and goodwill of SpectraDisc and are reasonable in all respects in
light of the circumstance under which they were entered.

Each of Spectra Science and Nabil Lawandy acknowledge and agree that SpectraDisc
shareholders would be irreparably injured by any violation by them of the
provisions of Section 16 of this Agreement, that damages at law would be
inadequate, and that SpectraDisc shall be entitled to obtain an injunction in
any court of competent jurisdiction to restrain any such violation without the
need to post any bond or prove special damages.

Section 17.  Severability.

If any provision hereof should be held invalid, illegal or unenforceable in any
respect in any jurisdiction, then, to the fullest extent permitted by law, (a)
all other provisions hereof shall remain in full force and effect in such
jurisdiction and shall be liberally construed in order to carry out the
intentions of the parties hereto as nearly as may be possible and (b) such
invalidity, illegality or unenforceability shall not affect the validity,
legality or enforceability of such provision in any other jurisdiction. To the
extent permitted by applicable law, Spectra Science and SpectraDisc hereby waive
any provision of law that would render any provision hereof prohibited or
unenforceable in any respect.

Section 18.  Headings.

Headings used herein are for convenience only and shall not in any way affect
the construction of, or be taken into consideration in interpreting, this
Agreement.

Section 19.  Execution in Counterparts.

This Agreement may be executed in any number of counterparts, each of which
counterparts, when so executed and delivered, shall be deemed to be an original,
and all of which counterparts, taken together, shall constitute one and the same
instrument.

Section 20.  Entire Agreement.

This Agreement, together with any agreement referenced herein, constitutes, on
and as of the date hereof, the entire agreement of SpectraDisc and Spectra
Science with respect to the subject matter hereof, and all prior or
contemporaneous understandings or agreements, whether written or oral, between
Spectra Science and SpectraDisc with respect to such subject matter are hereby
superseded in their entirety, including but not limited to the Original Research
Agreement.

                            [Signature Page Follows]

                                    Amended and Restated Research Agreement -13-

<PAGE>

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
executed under seal and delivered as of the date first above written.

                                        SPECTRADISC CORPORATION

                                        By: /s/ Nabil M. Lawandy
                                            ____________________________________
                                        Name:  Dr. Nabil M. Lawandy
                                        Title: President

                                        SPECTRA SCIENCE CORPORATION

                                        By: /s/ Nabil M. Lawandy
                                           ____________________________________
                                        Name:  Dr. Nabil M. Lawandy
                                        Title: President

                                        /s/ Nabil M. Lawandy
                                        ________________________________________
                                        Nabil M. Lawandy, individually,
                                        as to Section 16 only

                     (SIGNATURE PAGE TO RESEARCH AGREEMENT)

                                    Amended and Restated Research Agreement -14-

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