Lampe, Conway & Co., LLC
LC Capital Master Fund, Ltd.
680 Fifth Avenue, Suite 1202
New York, NY 10019
July 31, 2007
DAYSTAR TECHNOLOGIES, INC.
13 Corporate Drive
Halfmoon, NY 12065
Attn: Stephan DeLuca, Chief Executive Officer
Ladies and Gentlemen:
Reference is hereby made to that certain Loan Agreement, dated as of June 15, 2007 (as amended and modified from time to
time, the “ Loan Agreement ”), by and among the DayStar Technologies, Inc. (the “ Company ”), LC Capital Master Fund, Ltd.
(together with its successor and assigns, the “ Holders ”) and Lampe, Conway & Co., LLC, as the agent and collateral agent for
the Holders (in such capacities, together with its successors and assigns, the “ Agent ”). Initially capitalized terms used herein
but not specifically defined herein shall have the meanings ascribed to them in the Loan Agreement.
The Company has requested that the Holders extend the deadline for consummating the Transaction under Section 6.2 of
the Loan Agreement (such deadline, the “ Transaction Deadline ”) from July 31, 2007 to September 14, 2007 (such later date, the
“ Extension Date ”). The Agent and the Holders party hereto (who represent the Majority Holders) hereby agree to extend the
Transaction Deadline to the Extension Date; provided that, notwithstanding the provisions of Section 6.1 of the Loan
Agreement, failure to consummate the Transaction (or a similar equity financing) on or before the Extension Date, whereby the
Company shall have raised Transaction Proceeds of not less than $25,000,000, shall immediately (without any cure period)
constitute an Event of Default under the Loan Agreement. The Holders party hereto (who represent the Majority Holders)
expressly agree that the failure of the Company to consummate the Transaction by July 31, 2007 shall not be deemed a default or
an Event of Default under Section 6.1 of the Agreement.
The extension of the Transaction Deadline granted herein is limited to the specifics hereof, shall not app