Document:

EXHIBIT 10.2

THIS NOTE AND THE COMMON SHARES ISSUABLE UPON CONVERSION OF THIS NOTE HAVE
NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE
SECURITIES LAWS. THIS NOTE AND THE COMMON SHARES ISSUABLE UPON CONVERSION OF
THIS NOTE MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE
ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT AS TO THIS NOTE UNDER SAID ACT
AND ANY APPLICABLE STATE SECURITIES LAWS OR AN OPINION OF COUNSEL REASONABLY
SATISFACTORY TO UNITED ENERGY CORP. THAT SUCH REGISTRATION IS NOT REQUIRED.

                          SECURED CONVERTIBLE TERM NOTE

     FOR VALUE RECEIVED, UNITED ENERGY CORP., a Nevada corporation (the
"BORROWER"), hereby promises to pay to LAURUS MASTER FUND, LTD., c/o Ironshore
Corporate Services Ltd., P.O. Box 1234 G.T., Queensgate House, South Church
Street, Grand Cayman, Cayman Islands, Fax: 345-949-9877 (the "HOLDER") or its
registered assigns or successors in interest, on order, the sum of ONE MILLION
SEVEN HUNDRED FIFTY THOUSAND DOLLARS ($1,750,000.00), together with any accrued
and unpaid interest hereon, on March 24, 2007 (the "MATURITY DATE") if not
sooner paid.

     Capitalized terms used herein without definition shall have the meanings
ascribed to such terms in that certain Securities Purchase Agreement dated as of
the date hereof between the Borrower and the Holder (the "PURCHASE AGREEMENT").

The following terms shall apply to this Note:

                                    ARTICLE I
                             INTEREST & AMORTIZATION

     1.1 Interest Rate and Payment. (a) Subject to Sections 4.10 and 5.6 hereof,
interest payable on this Note shall accrue at a rate per annum (the "Interest
Rate") equal to the "prime rate" published in The Wall Street Journal from time
to time. The prime rate shall be increased or decreased as the case may be for
each increase or decrease in the prime rate in an amount equal to such increase
or decrease in the prime rate; each change to be effective as of the day of the
change in such rate. The Interest Rate shall not be less than four percent (4%)
unless the Company shall be in compliance with Section 2.2 hereof. If the
Company has satisfied the requirements of Section 2.2 hereof, the Interest Rate
will be subject to adjustment as set forth in Section 1.1(b). In no event,
however, shall the Interest Rate be less than zero percent (0.0%). Interest
shall be payable monthly in arrears commencing on May 1, 2004, on the first day
of each consecutive calendar month thereafter (each, a "REPAYMENT DATE"), and on
the Maturity Date, whether by acceleration or otherwise.

     (b) On the last business day of each month hereafter until the Maturity
Date (each a "Determination Date"), the Interest Rate shall be adjusted: if (i)
the Company shall have registered the shares of the Company's common stock
underlying the conversion of the Note and that certain warrant issued to Holder
on a registration statement declared effective by the SEC, and (ii) the volume
weighted average price of the Common Stock as reported by Bloomberg, L.P. on the
Principal Market for the five (5) trading days immediately preceding a
Determination Date exceeds the then applicable Fixed

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Conversion Price, the Interest Rate for the succeeding calendar month shall
automatically be reduced by the greater of (i) one percent (1.0%) or (ii) two
percent (2.0%) if there is an effective Registration Statement (as defined in
the Registration Rights Agreement), for each incremental twenty five percent
(25%) increase in the market price of the Common Stock above the then applicable
Fixed Conversion Price.

     1.2 Minimum Monthly Principal Payments. Amortizing payments of the
aggregate principal amount outstanding under this Note at any time (the
"PRINCIPAL AMOUNT") shall begin on October 1, 2004 and shall recur on the first
calendar day of each succeeding month thereafter until the Maturity Date (each,
an "AMORTIZATION Date"). Subject to Section 3 below, beginning on the first
Amortization Date, the Borrower shall make monthly payments to the Holder on
each Repayment Date, each in the amount of $58,333.00 (the "MONTHLY
AMORTIZATION"), together with any accrued and unpaid interest to date on such
portion of the Principal Amount plus any and all other amounts which are then
owing under this Note but have not been paid (collectively, the "MONTHLY
AMOUNT").

                                   ARTICLE II
                           CONVERSION REPAYMENT OPTION

     2.1 (a) Payment of Monthly Amount in Cash or Common Stock. Subject to the
terms hereof, the Holder shall have the sole option to determine whether to
elect to accept payment of the Monthly Amount on each Repayment Date either in
cash or in shares of Common Stock (as defined in the Purchase Agreement), or a
combination of both. Each month by the fifth (5th) business day prior to each
Amortization Date (the "NOTICE Date"), the Holder shall deliver to Borrower a
written notice in the form of Exhibit B attached hereto electing to convert the
Monthly Amount payable on the next Repayment Date in either cash or Common
Stock, or a combination of both (each, a "REPAYMENT ELECTION NOTICE"). If a
Repayment Election Notice is not delivered by the Holder on or before the
applicable Notice Date for such Repayment Date, then the Borrower shall pay the
Monthly Amount due on such Repayment Date in cash. Any portion of the Monthly
Amount paid in cash on a Repayment Date, shall be paid to the Holder in an
amount equal to 100% of the principal portion of the Monthly Amount due and
owing to Holder on the Repayment Date. If the Holder converts all or a portion
of the Monthly Amount in shares of Common Stock, the number of such shares to be
issued by the Borrower to the Holder on such Repayment Date shall be the number
determined by dividing (x) the portion of the Monthly Amount to be paid in
shares of Common Stock, by (y) the then applicable Fixed Conversion Price. For
purposes hereof, the initial "FIXED CONVERSION PRICE" means $1.00 (which is the
greater of $1.00 or 105% of the average closing price for the ten trading days
immediately prior to the date of this Note).

     (b) Monthly Amount Conversion Guidelines. Subject to Sections 2.1(a), 2.2,
and 3.2 hereof, the Holder shall elect to convert all or a portion of the
Monthly Amount due on each Repayment Date in shares of Common Stock if the
average closing price of the Common Stock as reported by Bloomberg, L.P. on the
Principal Market (as defined in Section 4.7 hereof) for the five (5) trading
days immediately preceding such Repayment Date was greater than 110% of the
Fixed Conversion Price. Any part of the Monthly Amount due on a Repayment Date
that the Holder has not elected to convert into shares of Common Stock shall be
paid by the Borrower in cash on such Repayment Date. Any part of the Monthly
Amount due on such Repayment Date which the Holder has elected to convert into
shares of Common Stock but which must be paid in cash (as a result of the
closing price of the Common Stock on one or more of the five (5) trading days
immediately preceding the applicable Repayment Date was less than 110% of the
Fixed Conversion Price) shall be paid in cash at the rate of 100% of the Monthly
Amount otherwise due on the Repayment Date within three (3) business days of the
applicable Repayment Date.

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     2.2 No Effective Registration. Notwithstanding anything to the contrary
herein, none of the Borrower's obligations to the Holder may be converted into
Common Stock unless (a) either (i) an effective current Registration Statement
(as defined in the Registration Rights Agreement) covering the shares of Common
Stock to be issued in connection with satisfaction of such obligations exists,
or (ii) an exemption from registration of the Common Stock is available to
pursuant to Rule 144 of the Securities Act and (b) no Event of Default hereunder
exists and is continuing, unless such Event of Default is cured within any
applicable cure period or is otherwise waived in writing by the Holder in whole
or in part at the Holder's option.

     Any amounts converted by the Holder pursuant to this Section 2 shall be
deemed to constitute payments of outstanding principal applying to Monthly
Amounts for the remaining Repayment Dates in chronological order.

     2.3 Optional Redemption in Cash. The Borrower will have the option of
prepaying this Note ("OPTIONAL REDEMPTION") by paying to the Holder a sum of
money equal to one hundred twenty percent (120%) of the principal amount of this
Note together with accrued but unpaid interest thereon and any and all other
sums due, accrued or payable to the Holder arising under this Note, the Security
Agreement, or any Ancillary Agreement (as defined in the Security Agreement)
(the "REDEMPTION AMOUNT") outstanding on the day written notice of redemption
(the "NOTICE OF REDEMPTION") is given to the Holder. The Notice of Redemption
shall specify the date for such Optional Redemption (the "REDEMPTION PAYMENT
DATE") which date shall be ten (10) days after the date of the Notice of
Redemption (the "REDEMPTION PERIOD"). A Notice of Redemption shall not be
effective with respect to any portion of this Note for which the Holder has a
pending election to convert pursuant to Section 3.1, or for conversions elected
to be made by the Holder pursuant to Section 3.1 during the Redemption Period.
The Redemption Amount shall be determined as if such Holder's conversion
elections had been completed immediately prior to the date of the Notice of
Redemption. On the Redemption Payment Date, the Redemption Amount must be paid
in good funds to the Holder. In the event the Borrower fails to pay the
Redemption Amount on the Redemption Payment Date, then such Redemption Notice
will be null and void.

                                   ARTICLE III
                                CONVERSION RIGHTS

     3.1. Holder's Conversion Rights. The Holder shall have the right, but not
the obligation, to convert all or any portion of the then aggregate outstanding
principal amount of this Note, together with interest and fees due hereon, into
shares of Common Stock subject to the terms and conditions set forth in this
Article III. The Holder may exercise such right by delivery to the Borrower of a
written notice of conversion not less than one (1) day prior to the date upon
which such conversion shall occur. The date upon which such conversion shall
occur is the "CONVERSION DATE".

     3.2 Conversion Limitation. Notwithstanding anything contained herein to the
contrary, the Holder shall not be entitled to convert pursuant to the terms of
this Note an amount that would be convertible into that number of Conversion
Shares which would exceed the difference between the number of shares of Common
Stock beneficially owned by such Holder or issuable upon exercise of warrants
held by such Holder and 4.99% of the outstanding shares of Common Stock of the
Borrower. For the purposes of the immediately preceding sentence, beneficial
ownership shall be determined in accordance with Section 13(d) of the Exchange
Act and Regulation 13d-3 thereunder. The Holder may void the Conversion Share
limitation described in this Section 3.2 upon 75 days prior notice to the
Borrower or without any notice requirement upon an Event of Default.

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     3.3 Mechanics of Holder's Conversion. (a) In the event that the Holder
elects to convert this Note into Common Stock, the Holder shall give notice of
such election by delivering an executed and completed notice of conversion
("NOTICE OF CONVERSION") to the Borrower and such Notice of Conversion shall
provide a breakdown in reasonable detail of the Principal Amount, accrued
interest and fees being converted. On each Conversion Date (as hereinafter
defined) and in accordance with its Notice of Conversion, the Holder shall make
the appropriate reduction to the Principal Amount, accrued interest and fees as
entered in its records and shall use its best efforts to provide written notice
thereof to the Borrower within two (2) business days after the Conversion Date.
Each date on which a Notice of Conversion is delivered or telecopied to the
Borrower in accordance with the provisions hereof shall be deemed a Conversion
Date (the "CONVERSION DATE"). A form of Notice of Conversion to be employed by
the Holder is annexed hereto as Exhibit A.

     (b) Pursuant to the terms of the Notice of Conversion, the Borrower will
use its best efforts to issue instructions to the transfer agent accompanied by
an opinion of counsel within one (1) business day of the date of the delivery to
Borrower of the Notice of Conversion and shall cause the transfer agent to
transmit the certificates representing the Conversion Shares to the Holder by
crediting the account of the Holder's designated broker with the Depository
Trust Corporation ("DTC") through its Deposit Withdrawal Agent Commission
("DWAC") system within three (3) business days after receipt by the Borrower of
the Notice of Conversion (the "DELIVERY DATE"). In the case of the exercise of
the conversion rights set forth herein the conversion privilege shall be deemed
to have been exercised and the Conversion Shares issuable upon such conversion
shall be deemed to have been issued upon the date of receipt by the Borrower of
the Notice of Conversion. The Holder shall be treated for all purposes as the
record holder of such Common Stock, unless the Holder provides the Borrower
written instructions to the contrary.

     3.4 Conversion Mechanics.

     (a) The number of shares of Common Stock to be issued upon each conversion
of this Note shall be determined by dividing that portion of the principal and
interest and fees to be converted, if any, by the then applicable Fixed
Conversion Price. In the event of any conversions of outstanding principal
amount under this Note in part pursuant to this Article III, such conversions
shall be deemed to constitute conversions of outstanding principal amount
applying to Monthly Amounts for the remaining Repayment Dates in chronological
order. By way of example, if the original principal amount of this Note is
$1,750,000, the Holder converted $100,000 of such original principal amount
prior to the first Repayment Date, then (1) the principal amount of the Monthly
Amount due on the first Repayment Date would equal $0.00, (2) the principal
amount of the Monthly Amount due on the second Repayment Date would equal
$16,667.00 and (3) the principal amount of the Monthly Amount due on the third
Repayment Date would be $58,333.00.

     (b) The Fixed Conversion Price and number and kind of shares or other
securities to be issued upon conversion is subject to adjustment from time to
time upon the occurrence of certain events, as follows:

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     A. Stock Splits, Combinations and Dividends. If the shares of Common Stock
are subdivided or combined into a greater or smaller number of shares of Common
Stock, or if a dividend is paid on the Common Stock in shares of Common Stock,
the Fixed Conversion Price or the Conversion Price, as the case may be, shall be
proportionately reduced in case of subdivision of shares or stock dividend or
proportionately increased in the case of combination of shares, in each such
case by the ratio which the total number of shares of Common Stock outstanding
immediately after such event bears to the total number of shares of Common Stock
outstanding immediately prior to such event.

     B. During the period the conversion right exists, the Borrower will reserve
from its authorized and unissued Common Stock a sufficient number of shares to
provide for the issuance of Common Stock upon the full conversion of this Note.
The Borrower represents that upon issuance, such shares will be duly and validly
issued, fully paid and non-assessable. The Borrower agrees that its issuance of
this Note shall constitute full authority to its officers, agents, and transfer
agents who are charged with the duty of executing and issuing stock certificates
to execute and issue the necessary certificates for shares of Common Stock upon
the conversion of this Note.

     C. Share Issuances. Subject to the provisions of this Section 3.4, if the
Borrower shall at any time prior to the conversion or repayment in full of the
Principal Amount issue any shares of Common Stock to a person other than the
Holder (except (i) pursuant to Subsections A or B above; (ii) pursuant to
options, warrants, or other obligations to issue shares outstanding on the date
hereof as disclosed to Holder in writing; (iii) pursuant to options that may be
issued under any employee incentive stock option and/or any qualified and non
qualified stock option plan adopted by the Borrower) for a consideration per
share (the "Offer Price") less than the Fixed Conversion Price in effect at the
time of such issuance, then the Fixed Conversion Price shall be immediately
reset to such lower Offer Price. For purposes hereof, the issuance of any
security of the Borrower convertible into or exercisable or exchangeable for
Common Stock shall result in an adjustment to the Fixed Conversion Price at the
time of issuance of such securities.

     D. Reclassification, etc. If the Borrower at any time shall, by
reclassification or otherwise, change the Common Stock into the same or a
different number of securities of any class or classes, this Note, as to the
unpaid Principal Amount and accrued interest thereon, shall thereafter be deemed
to evidence the right to purchase an adjusted number of such securities and kind
of securities as would have been issuable as the result of such change with
respect to the Common Stock immediately prior to such reclassification or other
change.

     3.5 Issuance of New Note. Upon any partial conversion of this Note, a new
Note containing the same date and provisions of this Note shall, at the request
of the Holder, be issued by the Borrower to the Holder for the principal balance
of this Note and interest which shall not have been converted or paid. The
Borrower will pay no costs, fees or any other consideration to the Holder for
the production and issuance of a new Note.

                                   ARTICLE IV
                                EVENTS OF DEFAULT

     Upon the occurrence and continuance of an Event of Default beyond any
applicable grace period, the Holder may make all sums of principal, interest and
other fees then remaining unpaid hereon and all other amounts payable hereunder
due and payable within five (5) days after written notice from Holder to
Borrower (each occurrence being a "DEFAULT NOTICE PERIOD"). In the event of such
an

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<PAGE>

acceleration, the amount due and owing to the Holder shall be 120% of the
outstanding principal amount of the Note (plus accrued and unpaid interest and
fees, if any). If, with respect to any Event of Default other than a payment
default described in Section 4.1 below, within the Default Notice Period the
Borrower cures the Event of Default, the Event of Default will be deemed to no
longer exist and any rights and remedies of Holder pertaining to such Event of
Default will be of no further force or effect.

     The occurrence of any of the following events is an "EVENT OF DEFAULT":

     4.1 Failure to Pay Principal, Interest or other Fees. The Borrower fails to
pay when due any installment of principal, interest or other fees hereon in
accordance herewith, or the Borrower fails to pay when due any amount due under
any other promissory note issued by Borrower and such failure continues for a
period of three (3) business days after such payment is the due.

     4.2 Breach of Covenant. The Borrower breaches any material covenant or
other term or condition of this Note or the Purchase Agreement in any material
respect and such breach, if subject to cure, continues for a period of thirty
(30) days after the occurrence thereof, except where a longer cure period has
been provided.

     4.3 Breach of Representations and Warranties. Any material representation
or warranty of the Borrower made herein, in the Purchase Agreement, or in any
Related Document (as defined in the Purchase Agreement) shall be materially
false or misleading and shall not be cured for a period of fifteen (15) days
after the occurrence thereof.

     4.4 Receiver or Trustee. The Borrower shall make an assignment for the
benefit of creditors, or apply for or consent to the appointment of a receiver
or trustee for it or for a substantial part of its property or business; or such
a receiver or trustee shall otherwise be appointed.

     4.5 Judgments. Any money judgment, writ or similar final process shall be
entered or filed against the Borrower or any of its property or other assets for
more than $250,000, and shall remain unvacated, unbonded or unstayed for a
period of ninety (90) days.

     4.6 Bankruptcy. Bankruptcy, insolvency, reorganization or liquidation
proceedings or other proceedings or relief under any bankruptcy law or any law
for the relief of debtors shall be instituted by or against the Borrower which
is not vacated within ninety (90) days.

     4.7 Stop Trade. An SEC stop trade order or Principal Market trading
suspension of the Common Stock shall be in effect for 5 consecutive days or 5
days during a period of 10 consecutive days, excluding in all cases a suspension
of all trading on a Principal Market, provided that the Borrower shall not have
been able to cure such trading suspension within 30 days of the notice thereof
or list the Common Stock on another Principal Market within 60 days of such
notice. The "Principal Market" for the Common Stock shall include the NASD OTC
Bulletin Board, NASDAQ SmallCap Market, NASDAQ National Market System, American
Stock Exchange, or New York Stock Exchange (whichever of the foregoing is at the
time the principal trading exchange or market for the Common Stock, or any
securities exchange or other securities market on which the Common Stock is then
being listed or traded).

     4.8 Failure to Deliver Common Stock or Replacement Note. The Borrower's
failure to timely deliver Common Stock to the Holder pursuant to and in the form
required by this Note, and Section 9 of

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the Purchase Agreement, if such failure to timely deliver Common Stock
shall not be cured within two (2) business days after written notice. If
Borrower is required to issue a replacement Note to Holder and Borrower shall
fail to deliver such replacement Note within seven (7) Business Days after
receipt of a request from the Purchaser to replace the Note.

     4.9 Default Under Related Agreements. The occurrence and continuance of any
Event of Default as defined in the Related Agreements.

                           DEFAULT RELATED PROVISIONS

     4.10 Payment Grace Period. The Borrower shall have a three (3) business day
grace period to pay any monetary amounts due under this Note or the Purchase
Agreement or any Related Document, after which grace period a default interest
rate of two percent (2%) per annum shall apply to the monetary amounts due
hereunder.

     4.11 Conversion Privileges. The conversion privileges set forth in Article
III shall remain in full force and effect immediately from the date hereof and
until this Note is paid in full.

     4.12 Cumulative Remedies. The remedies under this Note shall be cumulative.

                                    ARTICLE V
                                  MISCELLANEOUS

     5.1 Failure or Indulgence Not Waiver. No failure or delay on the part of
the Holder hereof in the exercise of any power, right or privilege hereunder
shall operate as a waiver thereof, nor shall any single or partial exercise of
any such power, right or privilege preclude other or further exercise thereof or
of any other right, power or privilege. All rights and remedies existing
hereunder are cumulative to, and not exclusive of, any rights or remedies
otherwise available.

     5.2 Notices. Any notice herein required or permitted to be given shall be
in writing and shall be deemed effectively given: (a) when sent by confirmed
telex or facsimile if sent during normal business hours of the recipient, if
not, then on the next business day, (b) five days after having been sent by
registered or certified mail, return receipt requested, postage prepaid, or (c)
one day after deposit with a nationally recognized overnight courier, specifying
next day delivery, with written verification of receipt. All communications
shall be sent to the Borrower shall be sent to United Energy Corp., 600
Meadowlands Parkway, #20 Secaucus, New Jersey 07094, Attention: Ronald Wilen,
Chief Executive Officer, Facsimile: (201) 842-1307, with a copy to Greenberg
Traurig, LLP, Metlife Building, 200 Park Avenue, 15th Floor, New York, New York
10166, Attention: Spencer G. Feldman, Esq., Facsimile : (212) 801-6400, and to
the Holder at the address provided in the Purchase Agreement for such Holder,
with a copy to John E. Tucker, Esq., 825 Third Avenue, 14th Floor, New York, New
York 10022, facsimile number (212) 541-4434, or at such other address as the
Borrower or the Holder may designate by ten days advance written notice to the
other parties hereto. A Notice of Conversion shall be deemed given when made to
the Borrower pursuant to the Purchase Agreement.

     5.3 Amendment Provision. The term "Note" and all reference thereto, as used
throughout this instrument, shall mean this instrument as originally executed,
or if later amended or supplemented, then as so amended or supplemented, and any
successor instrument issued pursuant to Section 3.5 hereof, as it may be amended
or supplemented.

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     5.4 Assignability. This Note shall be binding upon the Borrower and its
successors and assigns, and shall inure to the benefit of the Holder and its
successors and assigns, and may be assigned by the Holder in accordance with the
requirements of the Purchase Agreement.

     5.5 Governing Law. This Note shall be governed by and construed in
accordance with the laws of the State of New York, without regard to principles
of conflicts of laws. Any action brought by either party against the other
concerning the transactions contemplated by this Agreement shall be brought only
in the state courts of New York or in the federal courts located in the state of
New York. Both parties and the individual signing this Note on behalf of the
Borrower agree to submit to the jurisdiction of such courts. The prevailing
party shall be entitled to recover from the other party its reasonable
attorney's fees and costs. In the event that any provision of this Note is
invalid or unenforceable under any applicable statute or rule of law, then such
provision shall be deemed inoperative to the extent that it may conflict
therewith and shall be deemed modified to conform with such statute or rule of
law. Any such provision which may prove invalid or unenforceable under any law
shall not affect the validity or unenforceability of any other provision of this
Note. Nothing contained herein shall be deemed or operate to preclude the Holder
from bringing suit or taking other legal action against the Borrower in any
other jurisdiction to collect on the Borrower's obligations to Holder, to
realize on any collateral or any other security for such obligations, or to
enforce a judgment or other court in favor of the Holder.

     5.6 Maximum Payments. Nothing contained herein shall be deemed to establish
or require the payment of a rate of interest or other charges in excess of the
maximum permitted by applicable law. In the event that the rate of interest
required to be paid or other charges hereunder exceed the maximum permitted by
such law, any payments in excess of such maximum shall be credited against
amounts owed by the Borrower to the Holder and thus refunded to the Borrower.

     5.7 Security Interest. The holder of this Note has been granted a security
interest in certain assets of the Borrower more fully described in a Security
Agreement dated as of March 24, 2004.

     5.8 Construction. Each party acknowledges that its legal counsel
participated in the preparation of this Note and, therefore, stipulates that the
rule of construction that ambiguities are to be resolved against the drafting
party shall not be applied in the interpretation of this Note to favor any party
against the other.

     5.9 Cost of Collection. If default is made in the payment of this Note, the
borrower shall pay to Holder reasonable costs of collection, including
reasonable attorney's fees.

                            [SIGNATURE PAGE FOLLOWS.]

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<PAGE>

     IN WITNESS WHEREOF, Borrower has caused this Convertible Term Note to be
signed in its name effective as of this 24th day of March, 2004.

                                              UNITED ENERGY CORP.

                                               By: /s/ Ronald Wilen
                                                  ------------------------------
                                               Name:   Ronald Wilen
                                               Title:  Chairman and
                                                       Chief Executive Officer

                                       9
<PAGE>

                                    EXHIBIT A

                              NOTICE OF CONVERSION

(To be executed by the Holder in order to convert all or part of the Note
into Common Stock

[Name and Address of Holder]

The Undersigned hereby elects to convert $_________ of the principal due on
[specify applicable Repayment Date] under the Convertible Term Note issued by
UNITED ENERGY CORP. dated March 24, 2004 by delivery of Shares of Common Stock
of UNITED ENERGY CORP. on and subject to the conditions set forth in Article III
of such Note.

1.       Date of Conversion         _______________________

2.       Shares To Be Delivered:    _______________________

                                           By:_______________________________
                                           Name:_____________________________
                                           Title:______________________________

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<PAGE>

                                    EXHIBIT B

                           CONVERSION ELECTION NOTICE

(To be executed by the Holder in order to convert all or part of a Monthly
Amount into Common Stock)

[Name and Address of Holder]

Holder hereby elects to convert $_________ of the Monthly Amount due on
[specify applicable Repayment Date] under the Convertible Term Note issued by
UNITED ENERGY CORP. dated March 24, 2004 by delivery of Shares of Common Stock
of UNITED ENERGY CORP. on and subject to the conditions set forth in Article III
of such Note.

1.       Fixed Conversion Price:    $_______________________

2.       Amount to be paid:                 $_______________________

3.       Shares To Be Delivered (2 divided by 1):    __________________

4.       Cash payment to be made by Borrower :       $_____________________

Date: ____________                       LAURUS  MASTER FUND, LTD.

                                         By:
                                            ----------------------------------
                                         Name:
                                         Title:

                                       11EXHIBIT 10.3

                               UNITED ENERGY CORP.
                               SECURITY AGREEMENT

                                                                  March 24, 2003

To:  Laurus Master Fund, Ltd.
     c/o Ironshore Corporate Services, Ltd.
     P.O. Box 1234 G.T
     Queensgate House
     South Church Street
     Grand Cayman, Cayman Islands

Gentlemen:

     1. To secure the payment of all Obligations (as hereafter defined), we
hereby grant to you a continuing security interest in all of the following
property now owned or at any time hereafter acquired by us, or in which we now
have or at any time in the future may acquire any right, title or interest (the
"Collateral"): all accounts, inventory, equipment, goods, documents, instruments
(including, without limitation, promissory notes), contract rights, general
intangibles (including, without limitation, payment intangibles and an absolute
right to license on terms no less favorable than those currently in effect among
our affiliates, but not own, intellectual property), chattel paper, supporting
obligations, investment property, letter-of-credit rights, trademarks and
tradestyles in which we now have or hereafter may acquire any right, title or
interest, all proceeds and products thereof (including, without limitation,
proceeds of insurance) and all additions, accessions and substitutions thereto
or therefore. In the event we wish to finance the acquisition of any hereafter
acquired equipment and have obtained a commitment from a financing source to
finance such equipment from an unrelated third party, you agree to release your
security interest on such hereafter acquired equipment so financed by such third
party financing source.

     2. The term "Obligations" as used herein shall mean and include all debts,
liabilities and obligations owing by us to you hereunder and under whether
arising under, out of, or in connection with that certain Securities Purchase
Agreement dated as of the date hereof by us and between the undersigned and
Laurus Master Fund, Ltd. ("Laurus") (the "Securities Purchase Agreement"), that
certain Secured Convertible Term Note dated as of the date hereof made by in
favor of Laurus (the "Term Note"), the Warrant dated as of the date hereof made
by the undersigned in favor of Laurus in connection with the Term Note (the
"Term Note Warrant"), that certain Registration Rights Agreement dated as of the
date hereof by and between the undersigned and Laurus in connection with the
Term Note (the "Term Note Registration Rights Agreement"), that certain Security
Agreement dated as of the date hereof by and between the undersigned and Laurus
(the "Security Agreement") (the Securities Purchase Agreement, the Term Note,
the Term Note Warrant and the Term Note Registration Rights Agreement, the
Security Agreement, as each may be amended, modified, restated or supplemented
from time to time, are collectively referred to herein as the "Documents").

     3. We hereby represent, warrant and covenant to you that:

        (a) we are a company validly existing, in good standing and formed under
the laws of the State of Nevada and we will provide you thirty (30) days' prior
written notice of any change in our state of formation;

                                       1
<PAGE>

        (b) our legal name is UNITED ENERGY CORP., as set forth in our
Certificate of Incorporation as amended through the date hereof;

            (i)   the legal name of each of our subsidiaries are:

            (ii)  Nor Industries, Inc.;

            (iii) The Scitech Group, Inc.; and

        (c) Green Globe Industries, Inc.

            Other than the entities listed above, we have no other subsidiaries.

        (d) we are the holders of the majority voting shares of the issued and
outstanding shares of common stock of each of our subsidiaries listed above;

        (e) we are the lawful owner of the Collateral and have the sole right to
grant a security interest therein and will defend the Collateral against all
claims and demands of all persons and entities;

        (f) we will keep the Collateral free and clear of all attachments,
levies, taxes, liens, security interests and encumbrances of every kind and
nature ("Encumbrances"), except (i) any Encumbrance subordinate to the
Obligations or (ii) to the extent said Encumbrance does not secure indebtedness
in excess of $100,000 and such Encumbrance is removed or otherwise released
within twenty (20) days of the creation thereof;

        (g) we will at our own cost and expense keep the Collateral in good
state of repair (ordinary wear and tear excepted) and will not waste or destroy
the same or any part thereof other than ordinary course discarding of items no
longer used or useful in our business;

        (h) we will not without your prior written consent, sell, exchange,
lease or otherwise dispose of the Collateral, whether by sale, lease or
otherwise, except for the sale of inventory in the ordinary course of business
and for the disposition or transfer in the ordinary course of business during
any fiscal year of obsolete and worn-out equipment or equipment no longer
necessary for our ongoing needs, having an aggregate fair market value of not
more than $25,000 and only to the extent that:

            (i) the proceeds of any such disposition are used to acquire
replacement Collateral which is subject to your first priority security interest
(subject to the $100,000 allowance set forth in paragraph (f) of this Section 3)
or are used to repay Obligations or to pay general corporate expenses; or

            (ii) following the occurrence of an Event of Default which continues
to exist the proceeds of which are remitted to you to be held as cash collateral
for the Obligations;

        (i) we will insure the Collateral in your name against loss or damage by
fire, theft, burglary, pilferage, loss in transit and such other hazards as you
shall specify in amounts and under policies by insurers acceptable to you and
all premiums thereon shall be paid by us and the policies delivered to you. If
we fail to do so, you may procure such insurance and the cost thereof shall
constitute Obligations;

        (j) we will at all reasonable times allow you or your representatives
free access to and the right of inspection of the Collateral;

                                       2
<PAGE>

        (k) we hereby indemnify and hold you harmless from all loss, costs,
damage, liability and/or expense, including reasonable attorneys' fees, that you
may sustain or incur to enforce payment, performance or fulfillment of any of
the Obligations and/or in the enforcement of this Agreement or in the
prosecution or defense of any action or proceeding either against you or us
concerning any matter arising out of or in connection with this Agreement,
and/or any of the Obligations and/or any of the Collateral except to the extent
caused by your own gross negligence or willful misconduct.

     4. We shall be in default under this Agreement upon the happening of any of
the following events or conditions, each such event or condition being an "Event
of Default:"

        (a) we shall fail to pay when due or punctually perform any of the
Obligations and such failure shall continue for a period of three (3) days
following any failure to make payment, or for a period of thirty (30) days
following default for any other such failure;

        (b) any covenant, warranty, representation or statement made or
furnished to you by us or on our behalf was false in any material respect when
made or furnished;

        (c) the loss, theft, substantial damage, destruction, sale or
encumbrance to or of any of the Collateral or the making of any levy, seizure or
attachment thereof or thereon except to the extent:

        (d) such loss is covered by insurance proceeds which are used to replace
the item or repay us; or

        (e) said levy, seizure or attachment does not secure indebtedness in
excess of $100,000 and such levy, seizure or attachment has not been removed or
otherwise released within twenty (20) days of the creation or the assertion
thereof;

        (f) we shall become insolvent, cease operations, dissolve, terminate our
business existence, make an assignment for the benefit of creditors, suffer the
appointment of a receiver, trustee, liquidator or custodian of all or any part
of our property;

        (g) any proceedings under any bankruptcy or insolvency law shall be
commenced by or against us and if commenced against us shall not be dismissed
within ninety (90) days;

        (h) we shall repudiate, purport to revoke or fail to perform any of our
obligations under the Note (after passage of applicable cure period, if any); or

        (i) an Event of Default shall have occurred under and as defined in the
Note.

     5. Upon the occurrence of any Event of Default and at any time thereafter,
you may declare all Obligations immediately due and payable and you shall have
the remedies of a secured party provided in the Uniform Commercial Code as in
effect in the State of New York, this Agreement and other applicable law. Upon
the occurrence of any Event of Default and at any time thereafter, you will have
the right to take possession of the Collateral and to maintain such possession
on our premises or to remove the Collateral or any part thereof to such other
premises as you may desire. Upon your request, we shall assemble the Collateral
and make it available to you at a place designated by you. If any notification
of intended disposition of any Collateral is required by law, such notification,
if mailed, shall be deemed properly and reasonably given if mailed at least ten
(10) days before such disposition, postage prepaid, addressed to us either at
our address shown herein or at any address appearing on your records for us. All
notices shall be sent though a nationally reputable overnight courier to arrive
the next day. Any proceeds

                                       3
<PAGE>

of any disposition of any of the Collateral shall be applied by you to the
payment of all expenses in connection with the sale of the Collateral, including
reasonable attorneys' fees and other legal expenses and disbursements and the
reasonable expense of retaking, holding, preparing for sale, selling, and the
like, and any balance of such proceeds may be applied by you toward the payment
of the Obligations in such order of application as you may elect, and we shall
be liable for any deficiency.

     6. If we default in the performance or fulfillment of any of the terms,
conditions, promises, covenants, provisions or warranties on our part to be
performed or fulfilled under or pursuant to this Agreement, you may, at your
option without waiving your right to enforce this Agreement according to its
terms, immediately or at any time thereafter and without notice to us, perform
or fulfill the same or cause the performance or fulfillment of the same for our
account and at our sole cost and expense, and the cost and expense thereof
(including reasonable attorneys' fees) shall be added to the Obligations and
shall be payable on demand with interest thereon at the highest rate permitted
by law or, at your option, debited by you from the Collateral.

     7. We appoint you, any of your officers, employees or any other person or
entity whom you may designate as our attorney, with power to execute such
documents in our behalf and to supply any omitted information and correct
obvious errors in any documents executed by us or on our behalf; to file
financing statements against us covering the Collateral; to sign our name on
public records; and to do all other things you deem necessary to carry out this
Agreement. We hereby ratify and approve all acts of the attorney and neither you
nor the attorney will be liable for any acts of commission or omission, nor for
any error of judgment or mistake of fact or law other than gross negligence or
willful misconduct. This power being coupled with an interest, is irrevocable so
long as any Obligations remains unpaid.

     8. No delay or failure on your part in exercising any right, privilege or
option hereunder shall operate as a waiver of such or of any other right,
privilege, remedy or option, and no waiver whatever shall be valid unless in
writing, signed by you and then only to the extent therein set forth, and no
waiver by you of any default shall operate as a waiver of any other default or
of the same default on a future occasion. Your books and records containing
entries with respect to the Obligations shall be admissible in evidence in any
action or proceeding, shall be binding upon us for the purpose of establishing
the items therein set forth and shall constitute prima facie proof thereof. You
shall have the right to enforce any one or more of the remedies available to
you, successively, alternately or concurrently. We agree to join with you in
executing financing statements or other instruments to the extent required by
the Uniform Commercial Code in form satisfactory to you and in executing such
other documents or instruments as may be required or deemed necessary by you for
purposes of affecting or continuing your security interest in the Collateral.

     9. This Agreement shall be governed by and construed in accordance with the
laws of the State of New York and cannot be terminated orally. All of the
rights, remedies, options, privileges and elections given to you hereunder shall
inure to the benefit of your successors and assigns. The term "you" as herein
used shall include your company, any parent of your company, any of your
subsidiaries and any co-subsidiaries of your parent, whether now existing or
hereafter created or acquired, and all of the terms, conditions, promises,
covenants, provisions and warranties of this Agreement shall inure to the
benefit of and shall bind the representatives, successors and assigns of each of
us and them. You and we hereby (a) waive any and all right to trial by jury in
litigation relating to this Agreement and the transactions contemplated hereby
and we agree not to assert any counterclaim in such litigation, (b) submit to
the nonexclusive jurisdiction of any New York State court sitting in the borough
of Manhattan, the city of New York and (c) waive any objection you or we may
have as to the bringing or maintaining of such action with any such court.

                                       4
<PAGE>

     10. All notices from you to us shall be sufficiently given if mailed or
delivered to us at our address set forth below.

                                    Very truly yours,

                                    UNITED ENERGY CORP.

                                    By:         /s/ Ronald Wilen
                                                -------------------------------
                                    Name:       Ronald Wilen
                                                -------------------------------
ACKNOWLEDGED:                       Title:      Chairman and
                                                Chief Executive Officer
                                                -------------------------------

LAURUS MASTER FUND, LTD.            Address:       600 Meadowlands Parkway, #20
                                                   Secaucus, New Jersey 07094
By: /s/ Eugene Grin                 Attention:     Mr. Ronald Wilen,
    ----------------------                         Chief Executive Officer
  Name: Eugene Grin                                Facsimile: (201) 842-1307
  Title:  Partner

                                       5
<PAGE>

                                    With copy to:  Greenberg Traurig, LLP
                                                   Metlife Building
                                                   200 Park Avenue, 15th Floor
                                                   New York, New York 10166
                                       Attention:  Spencer G. Feldman, Esq.
                                       Facsimile:  (212) 801-6400

                                       6

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