Document:

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                                                                   Exhibit 10.32

         EMPLOYMENT AGREEMENT dated as of the date set forth on the signature
page between Paul M. Schiffrin (the "Employee") and DOV Pharmaceutical, Inc., a
New Jersey corporation (the "Company").

         WHEREAS, the Company and the Employee desire to enter into this
Employment Agreement to assure the Company of the continued services of the
Employee and to set forth the duties and compensation of the Employee, all upon
the terms and conditions hereinafter set forth;

         NOW, THEREFORE, in consideration of the agreements and covenants
contained herein, the Employee and the Company hereby agree as follows:

                                    ARTICLE 1

                                   EMPLOYMENT

         SECTION 1.01. TERM. Unless sooner terminated pursuant to Article III
hereof, the initial term of this Employment Agreement shall commence on the date
of this Employment Agreement and shall terminate on the date that is one year
thereafter (the "Initial Employment Period"). Unless sooner terminated pursuant
to Article III, the parties may renew this Employment Agreement for one year
(each such one year period hereinafter referred to as a "Renewal Period"; the
Initial Employment Period and all Renewal Periods are hereinafter referred to as
the "Employment Period").

         SECTION 1.02. POSITION. The Company shall employ the Employee and the
Employee shall serve as Vice President- Research Services during the Employment
Period.

         SECTION 1.03. DUTIES. The Employee share report to the President and
perform faithfully the duties assigned to him or her by the occupant thereof or
any Senior Officer to the best of his or her abilities and devote full business
time and attention to the Company's business as the Executive may reasonably be
expected to be capable of performing on behalf of any subsidiary and affiliate
of the Company as may from time to time be authorized or directed by the CEO.

                                   ARTICLE II

                                  COMPENSATION

         SECTION 2.01. BASIC COMPENSATION. As compensation for the Employee's
services hereunder, the Company shall pay to the Employee an annual salary of
$105,000.00 (as adjusted, the "Basic Compensation"), payable in bi-weekly
installments.

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         SECTION 2.02. INCENTIVE COMPENSATION. In addition to his Basic
Compensation, the Company shall pay to the Employee incentive compensation
("Incentive Compensation") in the form of performance bonuses as may be
determined in the discretion of the Board upon recommendation of the
Compensation Committee.

         SECTION 2.03. OTHER BENEFITS. (a) During the Employment Period, the
Executive shall have the right to participate in the Company's various programs
for the benefit of employees in accordance with their terms and as the same may
be amended or modified from time to time.

         (b) The Executive shall be eligible to participate in the Company's
Stock Option Plan and shall receive, initially, options covering 50,000 shares
at an exercise price of $3.68 per share.

         (c) The Executive shall be entitled to three weeks of paid vacation in
each calendar year. The Executive shall also be entitled to the same standard
paid holidays given by the Company to senior executives generally, all as
determined from time to time by the Board or appropriate committee thereof.
Vacation time shall cumulate and carry forward from year to year provided that
the Executive shall not be entitled to more than six weeks of vacation in any
one year without the permission of the Board and provided that the Executive
shall coordinate his vacation schedule with the CEO and President.

         (d) The Company shall reimburse the Employee for travel or other
expenses or disbursements reasonably incurred or made by him in connection with
the Company's business during the Employment Period upon receipt of reasonable
documentation thereof.

         (e) The benefits set forth in this Section 2.03 shall be collectively
referred to as the "Benefits."

                                   ARTICLE III

                            TERMINATION OF EMPLOYMENT

         SECTION 3.01.     TERMINATION OF EMPLOYMENT BY COMPANY.

         (a) Except as otherwise provided in this Article III and in Article IV,
upon the occurrence of any of the following events, this Employment Agreement
and the rights and obligations of the parties hereunder shall terminate:

                  (i) "Disability" (as defined in Section 3.05) of the Employee;

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                  (ii) conduct by the Employee constituting "Cause" (as defined
in Section 3.05).

         (b) In the case of termination pursuant to Section 3.01(a)(i), the
Company shall be obligated to pay the Employee and the Employee shall be
entitled to receive, in complete and total satisfaction of the obligations of
the Company hereunder, an amount equal to his or her Basic Compensation,
Incentive Compensation and Benefits for the period commencing on the date of
termination and ending on the date that is three months after the date of
termination. The Basic Compensation, earned but unpaid Incentive Compensation
and Benefits shall be paid in the manner and at the intervals provided in
Article II.

         (c) In the case of termination pursuant to Section 3.01(a)(ii), the
Company shall be obligated to pay the Employee and the Employee shall be
entitled to receive, in complete and total satisfaction of the obligations of
the Company hereunder, an amount equal to his or her Basic Compensation earned
but unpaid, Incentive Compensation and Benefits through the date of such
termination.

         (d) In the case of termination of the Employee by the Company other
than pursuant to Section 3.01(a)(i) or (ii) or Section 3.02, the Company shall
be obligated to pay the Employee and the Employee shall be entitled to receive,
in complete and total satisfaction of the obligations of the Company hereunder,
an amount equal to the Employee's Basic Compensation, Incentive Compensation and
all amounts to be paid and benefits to be provided pursuant to Article II for
the period commencing on the date of termination and ending on the later of (i)
the date that is three months after the date of such termination and (ii) the
date six months from the date of this Employment Agreement. The Basic
Compensation due to the Employee pursuant to this Section shall be paid in full
on the date of termination of the Employee. The Incentive Compensation and
Benefits shall be paid at the intervals set forth in Article II.

         SECTION 3.02. DEATH. In the event of the death of the Employee during
the Employment Period, the Employment Period shall terminate on the date of
death and the Employee's designated beneficiary or, if none, his or her estate
shall be entitled to receive, in complete and total satisfaction of the
Company's obligations hereunder, any accrued and unpaid Basic Compensation,
Incentive Compensation and Benefits, as appropriate, through such date of death
and for a period of 90 days thereafter.

         SECTION 3.03. TERMINATION OF EMPLOYMENT BY THE EMPLOYEE. (a) If during
the Employment Period there should occur any of the following events (each of
the following being an event giving the Employee the right to resign for "Good
Reason"): (i) a failure by the Company to provide the Employee with the Basic
Compensation, Incentive Compensation or Benefits, other than a failure that is
not in bad faith and is remedied by the Company within 15 days after receipt of
notice thereof given by the Employee, or (ii) a breach by the Company of any of
the other material

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terms of this Agreement that is not remedied by the Company within 15 days of
notice thereof by the Employee, the Employee may elect to terminate his
employment by notice to the Company (subject to Article IV). If the Employee
exercises such election, the Employment Period shall terminate effective upon
the later to occur of (x) the receipt of such notice by the Company and (y) the
expiration of the 15-day period referred to in Section 3.03(a)(ii) or (iii).

         (b) If the Employee exercises his election to terminate the rights and
obligations of the parties pursuant to Section 3.03(a), the Company shall be
obligated to pay the Employee and the Employee shall be entitled to receive in
complete and total satisfaction of the obligations of the Company hereunder, an
amount equal to his or her Basic Compensation, Incentive Compensation and
Benefits for the period commencing on the date of such termination and ending on
the later of (i) the date that is three months after the date of such
termination and (ii) the date that is six months after the date of this
Employment Agreement. The Basic Compensation shall be paid in full on the date
of termination. The Incentive Compensation and Benefits shall be paid at the
intervals set forth in Article II.

         (c) If the Employee terminates this Employment Agreement for any reason
other than those contained in Section 3.02 and Section 3.03(a), the rights and
obligations of the parties hereunder shall terminate immediately (except as
otherwise provided in Article IV) and the Employment Period shall terminate
immediately except that the Employee shall be entitled to receive, in complete
and total satisfaction of the obligations of the Company hereunder, his or her
Basic Compensation, Incentive Compensation and Benefits through the date of such
termination.

         SECTION 3.04. DEFINITIONS OF CERTAIN TERMS. (a) "Disability" shall mean
any physical or mental condition of the Employee that renders the Employee
incapable of performing any substantial portion of the services contemplated
hereby (as confirmed by competent medical evidence) and that has continued for
at least 90 consecutive business days in any 12 month period or a total of six
months during any twelve month period.

         (b) The following shall constitute conduct entitling the Company to
terminate the Employee's employment for "Cause": (i) the Employee's willful
refusal to perform or substantial disregard of the Employee's duties to the
Company that is not cured within 10 days of notice (specifying the failure)
thereof from the Board, (ii) the commission by the Employee of a willful and
material breach of Article IV or (iii) the conviction of any felony by the
Employee (or the equivalent thereof under the laws of any state). If the issue
of "Cause" is litigated in a proceeding in any court or through any means of
alternative dispute resolution and such issue is resolved in the Employee's
favor, then the Company shall reimburse the Employee for all reasonable
attorney's fees, costs and expenses incurred by the Employee in such proceeding.

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                                   ARTICLE IV

                    NON-COMPETITION; CONFIDENTIAL INFORMATION

         SECTION 4.01. NON-COMPETITION (a) Subject to Sections 4.01 (b) and
4.01(c), the Employee shall not engage in any activities, whether as employer,
proprietor, partner, stockholder (other than as the holder of less than 5% of
the stock of a corporation listed on a national securities exchange or in the
National Association of Securities Dealers, Inc. Automated Quotation System
(such a corporation being hereinafter referred to as a "Public Corporation")),
director, employee, consultant or otherwise, of any company with substantially
the same business as or competes directly with the Company in the United States
during the following periods: (i) the Employment Period; and (ii) during any
period after the termination of this Employment Agreement pursuant to Article 3
for which the Employee is being or has been paid.

         (b) The Employee shall not be deemed to be in breach of this Employment
Agreement by reason of services performed for a subsidiary or affiliate of the
Company.

         SECTION 4.02 NON-INTERFERENCE. During the Employment Period and the
period of non-competition as determined pursuant to Section 4.01(a), the
Employee (i) shall not publicly disparage any of the products, services or
actions of the Company or any of the Company's subsidiaries or affiliates; and
(ii) shall not, whether for his or her own account or for the account of any
other individual, partnership, firm, corporation or other business organization,
solicit, endeavor to entice away from the Company, or otherwise interfere with
the relationship of the Company with any person or entity who is, or was within
the then most recent 12-month period, a customer or client of the Company.

         SECTION 4.03. TRADE SECRET. The Employee shall not, at any time during
the Employment Period and for a period of three years thereafter, use (except
for the sole benefit of the Company, the Company's subsidiaries and affiliates)
or, without the written consent of the Board, divulge to any person (other than,
during the Employment Period, an Employee of the Company or any of the Company's
subsidiaries or other person to whom disclosure is reasonably necessary or
appropriate or legally required in connection with the Employee's duties
hereunder) any trade secrets or other confidential information of the Company or
any of its subsidiaries or affiliates, except to the extent that (a) such
information becomes a matter of public record, or is published in a newspaper,
magazine or other periodical available to the general public, in each case,
through no violation of this Employment Agreement by the Employee or (b) such
disclosure is required by oral questions, interrogatories, requests for
information or documents, subpoena, civil investigative demand or similar
process provided that the Employee shall immediately notify the Company of the
existence, terms and circumstances surrounding such a request so that it may
timely seek an appropriate protective order. When the Employee ceases to be
employed by the Company, the

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Employee shall surrender to the Company all records and documents in any form
obtained by him or entrusted to him during the course of employment hereunder
(together with all copies thereof) which pertain to the business of the Company
or its subsidiaries or affiliates or which were paid for by the Company or any
of the Company's subsidiaries or affiliates provided that the Employee may
retain copies of such documents as may be necessary for the Employee's personal
records for federal income tax purposes or, with the approval of the Board, for
other purposes relating to the Employee's legal affairs, which approval shall
not be unreasonably withheld.

         SECTION 4.04. SURVIVAL OF TERMS. The covenants contained in Sections
4.01, 4.02 and 4.03 shall survive the conclusion of the Employee's employment by
the Company in accordance with their respective terms.

                                    ARTICLE V

                                  MISCELLANEOUS

         SECTION 5.01. SERVICES AS OFFICER OR DIRECTOR. During the Employment
Period, the Employee shall, if elected or appointed, serve as an officer and/or
director of any current and future subsidiary and affiliate of the Company
without any additional compensation for such services provided that the Employee
shall be provided with reasonable and customary directors' and officers'
liability insurance if any such corporation is or becomes publicly held and
further provided that the Company shall cause any such subsidiary and/or
affiliate to protect, defend and save the Employee harmless from any and all
liability arising out of the performance of the Employee's duties as director
and/or officer.

         SECTION 5.02. CONFLICTS. The Employee hereby warrants and represents
that he or she is not under any legal or contractual obligation that would
conflict in any manner with the obligations and duties he or she is undertaking
herein, and that execution of this Employment Agreement shall not breach any
agreement to which he or she is now a party. The Employee further agrees to
reimburse and hold the Company harmless for any costs, damages or fees sustained
or expended by the Company as a result of this untruth of the representations or
breach of warranties contained in this Section 5.03.

         SECTION 5.03. RIGHT TO CHANGE BUSINESS. This Employment Agreement and
any rights or privileges granted to the Employee hereunder shall not in any way
prevent the Company or any of the Company's subsidiaries from exercising its
corporate powers to modify, restructure, enlarge, discontinue or otherwise
affect the business operations or activities of such entity.

         SECTION 5.04. NOTICES. Any notice or request required or permitted to
be given under this Employment Agreement shall be sufficient if in writing and
delivered

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personally or sent by registered mail, return receipt requested, to the
addresses set forth below or to any other address designated by either party by
notice similarly given. Such notice shall be deemed to have been given upon the
personal delivery thereof or three days after the date of such mailing thereof,
as the case may be.

                  If to the Employee, to:
                  34 Robert Drive
                  Warwick, New York 10990

                  If, to the Company, to:
                  DOV Pharmaceutical, Inc.
                  433 Hackensack Avenue
                  Hackensack, New Jersey 07601

                  With a copy to:
                  Friedman Siegelbaum LLP
                  Seven Becker Farm Road
                  Roseland, New Jersey 07068
                  Attn: Joseph R. Siegelbaum., Esq.

         SECTION 5.05. ASSIGNMENT AND SUCCESSION. The Employee acknowledges that
the services to be rendered by him hereunder are unique and personal.
Accordingly, the Employee may not assign any of his or her rights or delegate
any of his or her duties or obligations under this Employment Agreement. The
rights and obligations of the Company under this Employment Agreement shall
inure to the benefit of and be binding upon its successors and assigns.

         SECTION 5.06. HEADINGS. The headings contained in this Employment
Agreement are for convenience of reference only and shall not define or limit
the provisions hereof.

         SECTION 5.07. APPLICABLE LAW. This Employment Agreement shall be
interpreted in accordance with, and the rights of the parties hereto, shall be
determined by the laws of the State of New Jersey, without regard to conflict of
law rules. Each party hereby irrevocably consents and submits to the IN PERSONAM
jurisdiction of any court of general jurisdiction in the State of New Jersey
which shall serve as the sole and exclusive forum in any suit, action or
proceeding arising out of or in connection with this Employment Agreement.

         SECTION 5.08. WITHHOLDING TAXES. The Company may withhold from any
amounts payable under this Employment Agreement such federal, state or local
taxes as shall be required to be withheld pursuant to any applicable law or
regulations.

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         SECTION 5.9. ENTIRE AGREEMENT; AMENDMENTS. This Employment Agreement
contains the entire understanding of the parties hereto with regard to the
subject matter contained herein, and supersedes all prior agreements,
understandings or intents between the parties hereto or any related parties.
This Employment Agreement may be amended, modified or supplemented only pursuant
to Section 4.04 or by a writing signed by both parties hereto.

         SECTION 5.10. WAIVERS. Any term or provisions of this Employment
Agreement may be waived, or the time for its performance may be extended, by the
party or parties entitled to the benefits thereof but only to the extent
evidenced by a writing executed by such party. The failure of any party hereto
to enforce at any time any provision of this Employment Agreement shall not be
construed to be a waiver of such provision, nor in any way to affect the
validity of this Employment Agreement or any part hereof or the right of any
party thereafter to enforce each and every such provision. No waiver of any
breach of this Employment Agreement shall be held to constitute a waiver of any
other or subsequent breach.

         SECTION 5.11. PARTIAL INVALIDITY. Wherever possible, each provision
hereof shall be interpreted in such manner as to be effective and valid under
applicable law, but in case any one or more of the provisions contained herein
shall, for any reason, be held to be invalid, illegal or unenforceable in any
respect and cannot be modified in accordance with Section 4.04, such invalidity,
illegality or unenforceability shall not affect any other provisions of this
Employment Agreement, and this Employment Agreement shall be construed as if
such invalid, illegal or unenforceable provision or provisions had never been
contained herein unless the deletion of such provision or provisions would
result in such a material change as to cause the remaining terms hereof to be
unreasonable.

         SECTION 5.12. EXECUTION OF COUNTERPARTS. This Employment Agreement may
be executed in one or more counterparts, each of which shall be considered an
original instrument, but all of which shall be considered one and the same
agreement, and shall become binding when one or more counterparts have been
signed by each of the parties and delivered to each of the parties.

         IN WITNESS WHEREOF, the Company has caused this Employment Agreement to
be signed by its duly authorized officer and the Employee has signed this
Employment Agreement intending to be legally bound.

DOV Pharmaceutical, Inc.

by: /s/ Arnold S. Lippa
   -------------------------
Arnold S.  Lippa
Chief Executive Officer

Employee: /s/ Paul M. Schiffrin
         ---------------------------
Paul M. Schiffrin

Dated:       July 12, 1999

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January 23, 2002

Paul Schiffrin
34 Robert Drive
Warwick, NY 10990

RE:  EXTENSION OF EMPLOYMENT AGREEMENT

Dear Mr. Schiffrin:

         This will confirm the extension of your July 12, 1999, Employment
Agreement with DOV Pharmaceutical, Inc. through July 12, 2002. All terms and
conditions therein shall remain in full force and effect, except for the
increase of your base compensation to $145,000 per year.

Sincerely,

/s/ Arnold Lippa.
------------------------
Dr. Arnold Lippa
Chief Executive Officer

ACKNOWLEDGED AND AGREED:

/s/ Paul Schiffrin
------------------------
Paul SchiffrinEXHIBIT 10.46

These securities are not registered under state or federal  securities laws, and
may not be offered,  or sold,  pledged (except a pledge pursuant to the terms of
which any offer or sale upon  foreclosure  would be made in a manner  that would
not violate the registration  provisions of federal or state securities laws) or
otherwise  distributed for value, nor may these securities be transferred on the
books of the Company,  without  opinion of counsel,  concurred in by counsel for
the  Company,  that no violation of said  registration  provisions  would result
therefrom.

                           CONVERTIBLE PROMISSORY NOTE

US$___________                                                    June __, 2001
                                                                  Reno, Nevada

     For value  received,  Pawnbroker.com,  Inc.,  a Delaware  corporation  (the
"Company"),  promises to pay to _________________ (the "Holder"),  the principal
sum of  ______________  (US$_________).  Interest  shall accrue from the date of
this Convertible Promissory Note (this "Note") on the unpaid principal amount at
a rate equal to eighteen percent (18%) per annum, compounded annually. This Note
is  issued  pursuant  to  that  certain  Convertible  Promissory  Note  Purchase
Agreement between the Company and certain purchasers dated __________, 2001 (the
"Purchase Agreement") and is subject to the following terms and conditions.

     1.   Maturity.  Unless  converted  as provided in Section 2, this Note will
automatically  mature and be due and payable on December 31, 2003 (the "Maturity
Date"). Subject to Section 2 below, interest shall accrue on this Note but shall
not be due and payable until the Maturity Date.  Notwithstanding  the foregoing,
the entire unpaid  principal sum of this Note,  together with accrued and unpaid
interest thereon,  shall become  immediately due and payable upon the commission
of any act of  bankruptcy  by the  Company,  the  execution  by the Company of a
general  assignment  for the benefit of creditors,  the filing by or against the
Company of a petition in bankruptcy or any petition for relief under the federal
bankruptcy  act or the  continuation  of such petition  without  dismissal for a
period of ninety (90) days or more, or the  appointment of a receiver or trustee
to take possession of the property or assets of the Company.

     2.   Conversion.

          (a) Conversion  into Common Stock.  The entire  outstanding  principal
amount of and accrued interest on this Note shall be convertible,  at the option
of the Holder, into shares of the Company's common stock (the "Common Stock") at
any time upon the earlier of (i) one (1) year or (ii) the close of the Company's
next  Equity  Financing  in  a  single   transaction  or  a  series  of  related
transactions  yielding gross proceeds to the Company of at least US$2,000,000 in
the  aggregate.  The  number of shares  of Common  Stock to be issued  upon such
conversion  shall be equal to the  quotient  obtained by dividing (i) the entire
outstanding  principal amount of this Note plus (if applicable) accrued interest
by (ii) five  cents  (US$0.05)  (subject  to  appropriate  adjustment  for stock
splits,  stock  dividends or similar  transactions as set forth in Section 2(d),
below)(the  "Conversion  Price"),  rounded up to the  nearest  whole  share.  An
"Equity  Financing"  means the sale of: (i) shares of equity  securities  of the
Company, including capital stock of the Company and Common Stock

<PAGE>

equivalents or (ii) convertible  promissory notes or convertible debentures that
are  convertible  into shares of capital  stock,  in a single  transaction  or a
series of related transactions.

          (b) Mandatory  Conversion.  The entire outstanding principal amount of
and accrued  interest on this Note shall be  convertible,  at sole the option of
the Company, into Common Stock at the Conversion Price, upon the earlier of: (i)
the closing of a firm underwritten  public offering of Common Stock in which the
Company  receives  aggregate  gross proceeds of at least  US$10,000,000  (before
deduction of  underwriters'  discounts and  commissions) and the Common Stock is
listed on the American Stock Exchange,  the New York Stock Exchange,  the NASDAQ
National Market, or the NASDAQ Small-Cap  Market;  (ii) the closing of a sale of
the  Company  pursuant  to which the  holders of Common  Stock  receive at least
US$15,000,000  in cash,  (iii) the closing by the Company of an Equity Financing
in  which  gross   proceeds  to  the  Company  are  equal  to  or  greater  than
US$10,000,000  (which  gross  proceeds  shall not  include any  cancellation  or
conversion of  indebtedness),  or (iv) the average  closing  market price of the
Company's  Common Stock as quoted on the American Stock  Exchange,  the New York
Stock Exchange,  the NASDAQ National Market,  the NASDAQ Small-Cap Market or the
National  Association  of Securities  Dealers  over-the-counter  Bulletin  Board
during any twenty-two  (22)  consecutive  trading days is greater than $0.10 per
share (as adjusted as set forth in Section 2(d) below).

          (c) Mechanics and Effect of  Conversion.  No fractional  shares of the
Company's capital stock will be issued upon conversion of this Note. The Company
will  round up the  number of shares  issuable  to the  Holder to the next whole
share in lieu of any  fractional  share to which the Holder  would  otherwise be
entitled.  Upon  conversion  of this Note pursuant to this Section 2, the Holder
shall  surrender  this Note,  duly  endorsed,  at the  principal  offices of the
Company or any transfer agent of the Company. At its expense,  the Company will,
as soon as  practicable  thereafter,  issue and deliver to such Holder,  at such
Holder's  principal  office,  a certificate  or  certificates  for the number of
shares of Common  Stock to which such Holder is entitled  upon such  conversion.
Upon  conversion of this Note, the Company will be forever  released from all of
its obligations  and liabilities  under this Note with regard to that portion of
the principal  amount and accrued interest being  converted,  including  without
limitation  the  obligation  to pay such  portion  of the  principal  amount and
accrued interest.

          (d) Stock Splits,  etc. The number and kind of  securities  acquirable
upon the  conversion of this Note and the  Conversion  Price shall be subject to
adjustment from time to time upon the happening of any of the following. In case
the  Company  shall (i) pay a  dividend  in  shares  of  Common  Stock or make a
distribution  in shares of Common  Stock to  holders of its  outstanding  Common
Stock,  (ii)  subdivide  its  outstanding  shares of Common Stock into a greater
number of shares of Common Stock, (iii) combine its outstanding shares of Common
Stock into a smaller  number of shares of Common  Stock or (iv) issue any shares
of its capital stock in a reclassification  of the Common Stock, then the number
of shares of Common Stock upon conversion of this Note immediately prior thereto
shall be  adjusted  so that the Holder of this Note shall be entitled to receive
the kind and number of shares of Common Stock or other securities of the Company
which he,  she or it would  have been  entitled  to  receive  had such Note been
converted in advance  thereof.  An adjustment  made  pursuant to this  paragraph
shall  become  effective  immediately  after the  effective  date of such  event
retroactive to the record date, if any, for such event.

                                      -2-
<PAGE>

          (e) Organizational  Change. If the Company merges or consolidates with
another corporation or sells or transfers all or substantially all of its assets
to another  person and the holders of the Common  Stock are  entitled to receive
stock,  securities or property in respect of or in exchange for Common Stock (an
"Organizational  Change"),  then as a condition of such  merger,  consolidation,
sale or transfer,  the Company and any such  successor,  purchaser or transferee
shall agree that the Note may  thereafter  be converted on the terms and subject
to the conditions set forth above into the kind and amount of stock,  securities
or property receivable upon such Organizational Change by a Holder of the number
of shares of Common  Stock  into  which  this  Note  might  have been  converted
immediately  before such merger,  consolidation,  sale or  transfer,  subject to
adjustments,  which shall be as nearly equivalent as may be practicable.  In the
event of any proposed  Organizational  Change,  the Holder hereof shall have the
right to convert by  delivering  a notice of  conversion  to the Company  within
fifteen  (15) days of receipt of notice of such  Organizational  Change from the
Company. In the event the Holder hereof shall elect not to convert,  the Company
may pre-pay all  outstanding  principal and accrued  interest on this Debenture,
less all amounts  required by law to be  deducted,  upon which tender of payment
following such notice, the right of conversion shall terminate.

     3.   Payment.  All  payments  shall be made in lawful  money of the  United
States of  America  at such  place as the  Holder  hereof  may from time to time
designate  in writing to the  Company.  Payment  shall be credited  first to the
accrued  interest then due and payable and the  remainder  applied to principal.
The Company may pre-pay this Note at anytime without penalty.

     4.   Transfer;  Successors  and Assigns.  The terms and  conditions of this
Note shall inure to the benefit of and be binding upon the respective successors
and assigns of the parties.  Notwithstanding  the foregoing,  the Holder may not
assign,  pledge,  or  otherwise  transfer  this Note  without the prior  written
consent of the Company,  except for transfers to Affiliates  (as defined in Rule
12b-2 under the  Securities  Exchange Act of 1934,  as amended).  Subject to the
preceding  sentence,  this Note may be  transferred  only upon  surrender of the
original Note for registration of transfer,  duly endorsed,  or accompanied by a
duly executed written instrument of transfer in form satisfactory to the Holder.
Thereupon,  a new note for the same principal amount and interest will be issued
to, and  registered in the name of, the  transferee.  Interest and principal are
payable only to the registered holder of this Note.

     5.   Governing Law. This Note and all acts and transactions pursuant hereto
and the  rights  and  obligations  of the  parties  hereto  shall  be  governed,
construed and  interpreted in accordance with the laws of the State of Delaware,
without giving effect to principles of conflicts of law.

     6.   Notices.  Any notice  required or  permitted  by this Note shall be in
writing and shall be deemed sufficient upon delivery,  when delivered personally
or by a nationally-recognized delivery service (such as Federal Express or UPS),
or seventy two (72) hours after being  deposited in the U.S.  mail, as certified
or registered mail, with postage prepaid,  addressed to the party to be notified
at such  party's  address  as set forth  below or as  subsequently  modified  by
written notice.

     7.   Amendments and Waivers. Any term of this Note may be amended only with
the  written  consent of the Company and the  Holder.  Any  amendment  or waiver
effected in  accordance  with this  Section 7 shall be binding upon the Company,
the Holder and each transferee of the Note.

                                      -3-
<PAGE>

     8.   Shareholders, Officers and Directors Not Liable. In no event shall any
shareholder, officer or director of the Company be liable for any amounts due or
payable pursuant to this Note.

     9.   Action to Collect on Note.  If action is instituted to collect on this
Note, the Company promises to pay all costs and expenses,  including  reasonable
attorney's fees, incurred in connection with such action.

     The Company has executed this Note as of the date first above written.

                                        COMPANY:

                                        PAWNBROKER.COM, INC.

                                        By:
                                             ----------------------------------
                                             Joseph Schlader, President

                                        Address:   85 Keystone Avenue, Suite B
                                                   Reno, Nevada 89503

                                      -4-

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