Document:

clavijoagree.htm

    
      

      

    

    Exhibit 10.3

    
 

    EMPLOYMENT
      AGREEMENT

    

    This
      Agreement (the “Agreement”), dated as of December 27, 2007 (the
      “Effective Date”) by and between DOR BioPharma, Inc., a Delaware corporation
      having a place of business at 850 Bear Tavern Road, Suite 201, Ewing, NJ 08628
      (the “Corporation”), and James Clavijo, an individual (the
“Employee”).

    

    W
      I T N E
      S S E T H:

    

    WHEREAS,
      the Corporation desires to employ Employee as Controller, and the Employee
      desires to be employed by the Corporation as Controller, all pursuant to the
      terms and conditions hereinafter set forth;

    

    NOW,
      THEREFORE, in consideration of the foregoing and the mutual promises and
      covenants herein contained, it is agreed as follows:

    

    
      	
              1.

            	
              EMPL0YMENTDUTIES

            

    

    

    The
      Corporation engages and employs Employee, and Employee hereby accepts engagement
      and employment as Controller.  The Employee will report to the Chief
      Financial Officer, and shall perform high quality, full-time service to the
      Corporation to supervise and have responsibility for the financial operations
      of
      the Corporation, including, but not limited to: (i) recording, performing and
      overseeing the day to day financial transactions of the Corporation (ii)
      managing the financial accounts of the Corporation; and (iii) assisting in
      evaluating, negotiating, structuring and implementing business transactions
      with
      the Corporation’s customers and suppliers, and such other activities as may be
      reasonably requested by the Board of Directors of the Corporation. Employee
      acknowledges and understands that his employment may entail significant travel
      on behalf of the Corporation.

    

    
      	
              2.

            	
              EMPLOYMENTTERM

            

    

    

    Employee’s
      employment hereunder shall
      be for a period of three (3) years, unless extended by mutual agreement of
      the
      parties (the “Term”).

    

    
      	
              3.

            	
              COMPENSATION

            

    

    

    As
      compensation for the performance of
      Employee’s duties on behalf of the Corporation, Employee shall be compensated as
      follows:

    

    
      	
                          (a)

            	
              (i) The
                Corporation
                shall pay Employee an annual base salary (“Base Salary”) of one hundred
                and fifty-five thousand dollars ($155,000) per annum, payable in
                accordance with the usual payroll period of the
                Corporation.

            

    

    

    (ii)        The
      Corporation shall pay employee a minimum annual bonus of thirty-five thousand
      dollars ($35,000), payable on each December 15th during
      the
      Term.

    

    (b)  All
      options granted to Employee will be granted pursuant to the Corporation’s
      Employee Stock Option Plan and the Corporation’s standard Stock Option
      Agreement.  All vested options shall be exercisable for a period of
      six months following termination of employment, subject to extension in the
      discretion of the Stock Option Plan administrator.  Upon a change in
      control due to merger or acquisition, all Employee options shall become fully
      vested, and be exercisable for a period of 3 years after the merger or
      acquisition (unless they would have expired sooner pursuant to their natural
      term).  In the event of death of Employee during Term, all unvested
      options shall immediately vest and remain exercisable for the rest of their
      natural term and become property of Employee’s immediate family.

    

    (c)  300,000
      shares of common stock of the Corporation will be issued to Employee immediately
      prior to the completion of a transaction, or series or combination of related
      transactions, negotiated by the Corporation’s Board of Directors whereby,
      directly or indirectly, a majority of the Corporation’s capital stock or a
      majority of its assets are transferred from the Corporation and/or our
      stockholders to a third party.

    

    (d)      The
      Corporation shall withhold all applicable federal, state and local taxes; social
      security; workers compensation contributions; and such other amounts as may
      be
      required by law or agreed upon by the parties with respect to the compensation
      payable to the Employee pursuant to section 3(a) hereof.

    

    (e)     The
      Corporation shall reimburse Employee for all normal, usual and necessary
      expenses incurred by Employee in furtherance of the business and affairs of
      the
      Corporation, including reasonable travel and entertainment, including travel
      and
      lodging to and in Miami, against receipt by the Corporation of appropriate
      vouchers or other proof of Employee’s expenditures and otherwise in accordance
      with the policy of the Corporation.

    

    (f)         During
      the Term, Employee shall be entitled to a maximum of four (4) weeks paid
      vacation per annum.  Unused vacation may be carried over to successive
      years.

    

    (g)         The
      Corporation shall make available to Employee and his dependents such medical,
      disability, life insurance and such other benefits as the Corporation makes
      available to its other senior officers and directors.  Employee may
      elect to have the Corporation reimburse Employee for payments made to his own
      family medical plan.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	
              4.

            	
              REPRESENTATIONS
                AND WARRANTIES BY EMPLOYEE AND
                CORPORATION

            

    

    

    (a)         Employee
      hereby represents and warrants to the Corporation as follows:

    

    (i)         Neither
      the execution and delivery of this Agreement nor the performance by Employee
      of
      his duties and other obligations hereunder violate or will violate any statute,
      law, determination or award, or conflict with or constitute a default under
      (whether immediately, upon the giving of notice or lapse of time or both) any
      prior employment agreement, contract, or other instrument to which Employee
      is a
      party or by which he is bound.

    

    (ii)         Employee
      has the full right, power and legal capacity to enter and deliver this Agreement
      and to perform his duties and other obligations hereunder. This Agreement
      constitutes the legal, valid and binding obligation of Employee enforceable
      against him in accordance with its terms. No approvals or consents of any
      persons or entities are required for Employee to execute and deliver this
      Agreement or perform his duties and other obligations hereunder.

    

    (b)         The
      Corporation hereby represents and warrants to Employee as follows:

    

    (i)         The
      Corporation is duly organized, validly existing and in good standing under
      the
      laws of the State of Delaware, with all requisite corporate power and authority
      to own its properties and conduct its business in the manner presently
      contemplated.

    

    (ii)         The
      Corporation has full power and authority to enter into this Agreement and to
      incur and perform its obligations hereunder. This Agreement constitutes the
      legal, valid and binding obligation of the Corporation enforceable against
      it in
      accordance with its terms. Except as expressly set forth herein, no approvals
      or
      consents of any persons or entities are required for Corporation to execute
      and
      deliver this Agreement or perform its duties and other obligations
      hereunder.

    

    (iii)   The
      execution, delivery and performance by the Corporation of this Agreement does
      not conflict with or result in a breach or violation of or constitute a default
      under (whether immediately, upon the giving of notice or lapse of time or both)
      the certificate of incorporation or by-laws of the Corporation, or any agreement
      or instrument to which the Corporation is a party or by which the Corporation
      or
      any of its properties may be bound or affected.

    

    
      	
              5.

            	
              NON-COMPETITION

            

    

    

    
      	
               

            	
              (a)

            	
              Employee
                understands and recognizes that his services to the Corporation are
                special and unique and agrees that, during the Term and for a period
                of
                two (2) years following the termination of the Employee’s employment with
                the Corporation (or one (1) year in the event that the Employee is
                terminated within 1 year of the Effective Date), employee shall not
                in any
                manner, directly or indirectly, on behalf of himself or any person,
                firm,
                partnership, joint venture, corporation or other business entity
                (‘Person”), enter into or engage in any business competitive with the
                Corporation’s business or research activities, either as an individual for
                his own account, or as a partner, joint venturer, executive, agent,
                consultant, salesperson, officer, director of a Person operating
                or
                intending to operate in the area of the use of any of the compounds
                owned
                or licensed by the Corporation during the time of his
                employ.

            

    

    

    
      	
               

            	
              (b)

            	
              During the
                Term and for two
                (2) years (or one (1) year in the event that the Employee is terminated
                within 1 year of the Effective Date) following the termination of
                the
                Employee’s employment with the Corporation, Employee shall not, directly
                or indirectly, without the prior written consent of the
                Corporation:

            

    

    

    
      	
               

            	
              (i)

            	
              interfere
                with, disrupt or attempt to disrupt any past, present or prospective
                relationship, contractual or otherwise ,
                between the Corporation and any of its licensors, licensees,
                clients, customers, suppliers, employees, consultants or other related
                parties, or solicit or induce for hire any of the employees or agents
                of
                the Corporation, or any such individual who in the past was employed
                or
                retained by the Corporation within six (6) months of the termination
                of
                said individual’s employment or retention by the Corporation;
                or

            

    

    

    
      	
               

            	
              (ii)

            	
              solicit
                or accept employment or be retained by any party who, at any time
                during
                the term of this Agreement, was a customer or supplier of the Corporation
                or any of its affiliates or any licensor or licensee thereof where
                his
                position will be related to the business of the Corporation;
                or

            

    

    

               (c)                  In
      the event that Employee breaches any provisions of this Section 5 or
      there is a threatened
      breach,                  then,
      in addition to any other rights which the Corporation may have, the Corporation
      shall be entitled without the posting of a bond or other security to injunctive
      relief to enforce the restrictions contained herein.

    

    
      	
              6.

            	
              CONFIDENTIALINFORMATION

            

    

    

    (a)         Employee
      agrees that during the course of his employment or at any time after
      termination, he will not disclose or make accessible to any other person, the
      Corporation’s or any of its subsidiaries’ or affiliates’, (collectively the
“Affiliates”) products, services and technology, both current and under
      development, promotion and marketing programs, business plans, lists, customer
      lists, product or licensing opportunities, investor lists, trade secrets and
      other confidential and proprietary business information of the Corporation
      or
      the Affiliates. Employee agrees: (i) not to use any such information for himself
      or others; and (ii) not to take any such material or reproductions thereof
      in
      any form or media from the Corporation’s facilities at any time during his
      employment by the Corporation, except as required in Employee’s duties to the
      Corporation. Employee agrees immediately to return all such material and
      reproductions thereof in his possession to the Corporation upon request and
      in
      any event upon termination of employment.

    

    (b)         Except
      with prior written authorization by the Corporation, Employee agrees not to
      disclose or publish any of the confidential, technical or business information
      or material of the Corporation, to any suppliers, licensors, licensees,
      customers, partners or other third parties to whom the Corporation owes an
      obligation of confidence, at any time during or after his employment with the
      Corporation.

    

    (c)         Employee
      hereby assigns to the Corporation all right, title and interest he may have
      or
      acquire in all inventions (including patent rights) developed by Employee during
      the term of this Agreement (hereinafter the “Inventions”) and agrees that all
      Inventions shall be the sole property of the Corporation and its assigns, and
      the Corporation and its assigns shall be the sole owner of all patents,
      copyrights and other rights in connection therewith. Employee further agrees
      to
      assist the Corporation in every proper way (but at the Corporation’s expense) to
      obtain and from time to time enforce patents, copyrights or other rights on
      said
      Inventions in any and all countries. Employee hereby irrevocably designates
      counsel to the Corporation as Employee’s agent and attorney-in-fact to do all
      lawful acts necessary to apply for and obtain patents and copyrights and to
      enforce the Corporation’s rights under this Section. This Section shall survive
      the termination of this Agreement for any reason.

    

    (d)         The
      Employee recognizes that in the course of his duties hereunder, he may receive
      from Affiliates or others information which may be considered ‘material,
      nonpublic information” concerning a public company that is subject to the
      reporting requirements of the Securities and Exchange Act of 1934, as amended.
      The Employee agrees not to:

    

    (i)          Buy
      or sell any security, option, bond or warrant while in possession of relevant
      material, nonpublic information received from Affiliates or others in connection
      herewith;

    

    (ii)  Provide
      Affiliates with information with respect to any public company that may be
      considered material, nonpublic information; or

    

    (iii)       Provide
      any person with material, nonpublic information, received from Affiliates,
      including any relative, associate, or other individual who intends to, or may
      otherwise directly or indirectly benefit from, such information.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	
              7.

            	
              TERMINATION

            

    

    

    (a)         The
      Employee’s employment hereunder shall begin on the Effective Date and shall
      continue for the period set forth in Section 2 hereof unless renewed by mutual
      agreement or sooner terminated upon the first to occur of the following
      events:

    

    (i)         The
      death of the Employee;

    

    (ii)         One
      year following the merger or consolidation in which either more than fifty
      percent of the voting power of the Corporation is transferred or the Corporation
      is not the surviving entity, or sale or other disposition of all or
      substantially all the assets of the Corporation;

    

    (iii)      Termination
      by the Board of Directors of the Corporation for Just Cause. Any of the
      following actions by the Employee shall constitute “Just Cause”:

    

    
      	
               

            	
              (A)

            	
              Material
                breach by the Employee of Section 1, Section 5 or Section 6
                of this Agreement;

            

    

    

    
      	
               

            	
              (B)

            	
              Material
                breach by the Employee of any provision of this Agreement other than
                Section 5 or Section 6 which is not cured by the Employee within
                thirty
                (30) days of notice thereof from the
                Corporation;

            

    

    

    
      	
               

            	
              (C)

            	
              Any
                action by the Employee to intentionally harm the Corporation or any
                action
                of gross negligence by the Employee;
                or

            

    

    

    
      	
               

            	
              (D)

            	
              The
                conviction of the Employee of a
                felony.

            

    

    

    (iv)          Termination
      by the Employee for Just Cause. Any of the following actions or omissions by
      the
      Corporation shall constitute just cause, subject to the notice and cure
      requirements below, provided that the Employee terminates employment with the
      Corporation within one year following the initial existence of one or more
      of
      the following conditions, without the consent of the Executive:

    

    
      	
              (A)  

            	
              Material
                diminution of base salary;

            

    

    

    
      	
              (B)  

            	
              Material
                diminution of the Employee’s authority, duties or
                responsibilities;

            

    

    

    
      	
              (C)  

            	
              Material
                change in the geographic location in which the Employee provides
                services
                to the Corporation; or

            

    

    

    
      	
              (D)  

            	
              Material
                breach by the Corporation of any provision of this Agreement which
                is not
                cured by the Corporation within thirty (30) days of notice thereof
                from
                the Employee.

            

    

    

    The
      Employee must provide notice to the Corporation of the existence of the “just
      cause” condition not later than 90 days of its initial existence and the
      Corporation shall have 30 days from the date of the Employee notice to cure
      the
      condition giving rise to such notice.

    

    

    (b)        Upon
      termination by the Corporation pursuant to either subparagraph (i) or (iii)
      of
      paragraph (a) above or by Employee other than pursuant to subparagraph (iv)
      of
      paragraph (a) above, the Employee (or his estate in the event of termination
      pursuant to subparagraph (i)) shall be entitled to receive the Base Salary
      plus
      Bonus accrued but unpaid as of the date of termination including any vacation
      time accrued but not taken.

    

    (c)      Upon
      termination by the Corporation without Just Cause or pursuant to subparagraphs
      (ii) or (iv) of paragraph (a) above, then the term of the Agreement as set
      forth
      in Section 2 hereof shall be deemed to have been terminated as of such date
      and
      (i) the Corporation shall pay to the Employee, six (6) months salary, subject
      to
      setoff, and any accrued Bonuses payable upon the normal payroll periods of
      the
      Corporation including any vacation accrued but not taken.  No unvested
      options shall vest beyond the termination date, except where previously noted
      in
      Section 3 (b) or at the discretion of the Stock Option Plan
      Administrator.  Health benefits and life insurance will also be
      maintained for Employee (or his dependents in the event of termination pursuant
      to subparagraph (i)) by Company during severance period.

    

    

    (d)         Not
      withstanding any of the foregoing, Sections 5 and 6 shall survive the
      termination or expiration of this Agreement.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    8.          NOTICES

    

    Any
      notice or other communication under this Agreement shall be in writing and
      shall
      be deemed to have been given: when delivered personally against receipt
      therefor; one (1) day after being sent by Federal Express or similar overnight
      delivery; or three (3) days after being mailed registered or certified mail,
      postage prepaid, return receipt requested, to either party at the address set
      forth above, or to such other address as such party shall give by notice
      hereunder to the other party.

    

    9.          SEVERABILITYOFPROVISIONS

    

    If
      any
      provision of this Agreement shall be declared by a court of competent
      jurisdiction to be invalid, illegal or incapable of being enforced in whole
      or
      in part, such provision shall be interpreted so as to remain enforceable to
      the
      maximum extent permissible consistent with applicable law and the remaining
      conditions and provisions or portions thereof shall nevertheless remain in
      full
      force and effect and enforceable to the extent they are valid, legal and
      enforceable, and no provision shall be deemed dependent upon any other covenant
      or provision unless so expressed herein.

    

    10.           ENTIREAGREEMENTMODIFICATION

    

    This
      Agreement contains the entire agreement of the parties relating to the subject
      matter hereof, and the parties hereto have made no agreements, representations
      or warranties relating to the subject matter of this Agreement which are not
      set
      forth herein. No modification of this Agreement shall be valid unless made
      in
      writing and signed by the parties hereto.

    

    11.          BINDING
      EFFECT

    

    The
      rights, benefits, duties and obligations under this Agreement shall inure to,
      and be binding upon, the Corporation, its successors and assigns, and upon
      Employee and his legal representatives. This Agreement constitutes a personal
      service agreement, and the performance of Employee’s obligations hereunder may
      not be transferred or assigned by Employee.

    

    12.          NON-WAIVER

    

    The
      failure of either party to insist upon the strict performance of any of the
      terms, conditions and provisions of this Agreement shall not be construed as
      a
      waiver or relinquishment of future compliance therewith, and said terms,
      conditions and provisions shall remain in full force and effect. No waiver
      of
      any term or condition of this Agreement on the part of either party shall be
      effective for any purpose whatsoever unless such waiver is in writing and signed
      by such party.

    

    13.          GOVERNING
      LAW

    

    This
      Agreement shall be governed by, and construed and interpreted in accordance
      with, the laws of the State of Florida without regard to principles of conflict
      of laws.

    

    14.          HEADINGS

    

    The
      headings of paragraphs are inserted for convenience and shall not affect any
      interpretation of this Agreement.

    

    

    

    IN
      WITNESS WHEREOF, the parties hereto have executed this Agreement as of the
      day
      and year first above written.

    

    

    

    DOR
      BIOPHARMA, INC.

    

    

    By:
/s/
      Christopher J. Schaber

    

    Christopher
      J. Schaber, PhD

    Chief
      Executive Officer

    

    

    

    EMPLOYEE:

    

    

    By:
      /s/ James Clavijo

    James
      Clavijo

    ControllerExhibit 10.1

      THESE  SECURITIES  HAVE NOT BEEN  REGISTERED  UNDER THE  SECURITIES ACT OF
1933, AS AMENDED (THE "ACT"). THE SECURITIES REPRESENTED HEREBY MAY NOT BE SOLD,
OFFERED FOR SALE, TRANSFERRED,  ASSIGNED, PLEDGED OR HYPOTHECATED IN THE ABSENCE
OF AN EFFECTIVE  REGISTRATION  STATEMENT UNDER THE ACT, EVIDENCE SATISFACTORY TO
THE COMPANY THAT SUCH  REGISTRATION IS NOT REQUIRED UNDER THE ACT OR UNLESS SOLD
PURSUANT TO RULE 144 OF THE ACT.

                     BEACON ENTERPRISE SOLUTIONS GROUP INC.
                           CONVERTIBLE PROMISSORY NOTE

$______________                                             Louisville, Kentucky
                                                               December __, 2007

      Beacon  Enterprise   Solutions  Group  Inc.,  a  Nevada  corporation  (the
"Company"),  the principal office of which is located at 124 North First Street,
Louisville,  Kentucky 40202 for value  received,  hereby  promises to pay to the
order of [HOLDER], whose address is [_______________], or his registered assigns
(the "Holder"), the sum of [______________ ($________)],  and any unpaid accrued
interest hereon, as set forth below, on December 31, 2007 (the "Maturity Date").
This note (the  "Note") is one of the  Convertible  Promissory  Notes (the "2007
Notes") issued,  under the terms of that certain Securities  Exchange Agreement,
dated December [20],  2007, in exchange for those  Convertible  Promissory Notes
issued by the Company between June 1, 2007 and November 30, 2007.

      The  following  is a  statement  of the  rights  of  the  Holder  and  the
conditions  to which  this  Note is  subject,  and to which the  Holder,  by the
acceptance of this Note, agrees:

      1. Interest and Payments. The Company shall pay interest at the Prime Rate
of interest  in effect from time to time as reported in the Wall Street  Journal
(the  "Interest  Rate") on the  principal  of this Note  outstanding  during the
period  beginning  on the date hereof and ending on the Maturity  Date.  Accrued
interest under this Note shall be compounded  annually.  Interest  payable under
this Note shall be  computed  on the basis of a year of 360 days and actual days
elapsed  occurring in the period for which  payable.  Interest  shall be payable
when the unpaid principal balance of the Note is paid.

      Upon an Event of Default (as defined below),  interest shall accrue at the
Interest Rate plus three percent (3%) (the "Default Rate") on the balance of the
outstanding principal amount and all accrued interest thereon until such balance
is paid.

      The Holder shall receive a payment of all accrued  interest on the Note as
of the date of such  closing  and  thereafter  shall  receive  monthly  interest
payments,  which  shall be due and  payable on the 15th day of every month until
the Maturity Date, at which time the entire outstanding principal amount and all
accrued interest thereon shall be due and payable.

<PAGE>

      All  payments  made on this Note  shall be  applied,  at the option of the
Holder,  first to late charges and  collection  costs,  if any,  then to accrued
interest  and then to  principal.  After the  Maturity  Date or upon an Event of
Default,  interest shall continue to accrue on this Note at the Default Rate set
forth above and shall be payable on demand of the Holder.

      Notwithstanding  anything in this Note to the contrary,  the interest rate
charged hereon shall not exceed the maximum rate allowable by applicable law. If
any stated  interest rate herein exceeds the maximum  allowable  rate,  then the
interest  rate shall be reduced to the maximum  allowable  rate,  and any excess
payment  of  interest  made by the  Company  at any time shall be applied to the
unpaid balance of any outstanding principal of this Note.

      2. Events of Default.  If any of the events  specified  in this  Section 2
shall occur (herein individually referred to as an "Event of Default"),  persons
holding more than fifty percent (50%) of the then outstanding  principal balance
of the 2007  Notes  (the  "Majority  Holders")  may,  so long as such  condition
exists,  declare the entire outstanding principal and unpaid accrued interest on
this Note and the other 2007 Notes  immediately  due and  payable,  by notice in
writing to the Company.

            (i) The  institution by the Company of proceedings to be adjudicated
as bankrupt or insolvent,  or the consent by it to the institution of bankruptcy
or insolvency proceedings against it or the filing by it of a petition or answer
consenting to or seeking  reorganization or release under the federal Bankruptcy
Act, or any other  applicable  federal or state law, or the consent by it to the
filing  of any such  petition  or the  appointment  of a  receiver,  liquidator,
assignee,  trustee  or  other  similar  official  for  the  Company,  or for any
substantial  part of its property,  or the making by it of an assignment for the
benefit  of  creditors,  or the  taking of  corporate  action by the  Company in
furtherance of any such action;

            (ii) If, within sixty (60) days after the  commencement of an action
against the  Company  (and  service of process in  connection  therewith  on the
Company)  seeking  any  bankruptcy,  insolvency,  reorganization,   liquidation,
dissolution  or  similar  relief  under any  present or future  statute,  law or
regulation,  such action shall not have been resolved in favor of the Company or
all orders or proceedings thereunder affecting the operations or the business of
the  Company  stayed,  or if the stay of any  such  order  or  proceeding  shall
thereafter  be set aside,  or if,  within sixty (60) days after the  appointment
without the consent or acquiescence  of the Company of any trustee,  receiver or
liquidator of the Company or of all or any substantial part of the properties of
the Company, such appointment shall not have been vacated, or

            (iii)  Failure by the Company to make any  payment  when due on this
Note or any other material breach of this Note.

      3. Conversion.

            3.1 Voluntary  Conversion.  The Holder may, upon delivery of written
notice to the Company,  elect to convert the entire outstanding principal amount
of the Note into Shares (as defined  below),  and demand  payment of all accrued
but unpaid interest thereon.

            3.2 Conversion Procedure. Upon the election of the Holder to convert
this Note  pursuant to Section  3.1,  the entire  principal  amount of this Note
shall be  converted  into the

                                       2
<PAGE>

number  of shares of Common  Stock of the  Company  ("Shares")  equal to (x) the
outstanding  principal  amount  of this Note as of the date of the  election  to
convert,  divided by (y) $0.60 (as  adjusted  proportionately  from time to time
upon any stock  split,  stock  dividend,  adjustment,  combination  or  division
affecting  shares of Common  Stock) and upon such other terms and  conditions as
applicable to the Shares with respect to any such  transaction.  All accrued but
unpaid  interest  shall  be  paid  to the  holder  at the  time  of  conversion.
Otherwise,  all unpaid principal and unpaid accrued interest on the Note will be
due and payable on the Maturity Date except to the extent the Holder has elected
to convert its Note into Shares as provided herein.

            3.3 Delivery of Evidence of  Ownership.  As promptly as  practicable
after the  conversion  of this Note,  the Company at its expense  will issue and
deliver to the Holder a  certificate  or  certificates  and any other  documents
necessary  to  evidence  ownership  of the number of Shares  issuable  upon such
conversion upon surrender of this Note, duly endorsed,  at the principal  office
of the Company.

            3.4 No  Impairment.  The  Company  will  not,  by  amendment  of its
organizational  documents  or  through  any  reorganization,   recapitalization,
transfer  of  assets,  consolidation,  merger,  dissolution,  issue  or  sale of
securities or any other voluntary action,  avoid or seek to avoid the observance
or performance of any of the terms to be observed or performed  hereunder by the
Company,  but will at all times in good faith  assist in the carrying out of all
the  provisions of this Section 3 and in the taking of all such action as may be
necessary or appropriate in order to protect the conversion rights of the Holder
against impairment.

      3.5 Full Conversion.  Upon conversion of the entire outstanding  principal
of this Note and payment of the accrued interest  thereon,  the Company shall be
forever released from all its obligations and liabilities under this Note.

      4.  Assignment.  The rights and  obligations of the Company and the Holder
shall be binding upon and benefit the successors, assigns, heirs, administrators
and transferees of the parties. The Note shall not be transferred by the Holder,
in whole or in part,  unless a warrant  exercisable for a ratable portion of the
Warrant Shares ( in the Warrant held by the Holder), and on the same other terms
as such Warrant, is also transferred.

      5.  Waiver and  Amendment.  The  provisions  of this Note may be  amended,
waived or  modified  upon the written  consent of the  Company and the  Majority
Holders, and all such amendments,  waivers and modifications shall be binding on
all holders of the 2007 Notes.

      6.  Prepayment.  The Holder may  require the Company to prepay the Note at
any time after the later of the completion of an equity  offering in which gross
proceeds of $3.5 million are raised or January 31, 2008, and before the Maturity
Date,  and the  Company  shall pay the Holder the entire  outstanding  principal
amount hereunder and all accrued interest thereon not more than thirty (30) days
after  the  delivery  of  written  notice  to the  Company  of such  demand  for
prepayment. Neither the principal amount of nor any accrued interest on the Note
may be prepaid by the Company  without the Holder's  written consent to any such
prepayment.

      7.  Treatment  of Note.  To the extent  permitted  by  generally  accepted
accounting  principles,  the Company will treat,  account and report the Note as
debt and not equity for

                                       3
<PAGE>

accounting purposes and with respect to any returns filed with federal, state or
local tax authorities.

      8.  Notices.  Any  notice,  request  or other  communication  required  or
permitted  hereunder  shall be in writing  and shall be deemed to have been duly
given when (i) delivered by hand (with written confirmation of receipt), or (ii)
when received by the  addressee,  if sent by a nationally  recognized  overnight
delivery service (receipt requested),  in each case to the appropriate addresses
set forth herein. Any party hereto may by notice so given change its address for
future notice hereunder.

      9. Waivers.  The Company hereby waives  presentment,  demand,  protest and
notice of dishonor and protest, and also waives all other exemptions; and agrees
that  extension  or  extensions  of the  time of  payment  of  this  Note or any
installment  or part  thereof  may be  made  before,  at or  after  maturity  by
agreement by the Holder.  The Company shall pay to the Holder,  upon demand, all
costs and expenses,  including,  without  limitation,  attorney's fees and legal
expenses that may be incurred by the Holder in connection  with the  enforcement
of this Note.

      10.  Governing Law. This  Agreement  shall be governed by and construed in
accordance with the laws of the Commonwealth of Kentucky, excluding that body of
law relating to conflict of laws.

      11. Heading; References. All headings used herein are used for convenience
only and shall not be used to  construe or  interpret  this Note.  Except  where
otherwise indicated, all references herein to Sections refer to Sections hereof.

                                       4
<PAGE>

      IN WITNESS  WHEREOF,  the  Company  has caused this Note to be issued this
__th day of December, 2007.

                                       BEACON ENTERPRISE SOLUTIONS GROUP INC.

                                       By:
                                          --------------------------------------
                                          Bruce Widener, Chief Executive Officer

                                       5
<PAGE>

THIS  WARRANT  HAS NOT BEEN  REGISTERED  UNDER THE  SECURITIES  ACT OF 1933,  AS
AMENDED,  OR ANY APPLICABLE STATE SECURITIES LAWS, AND MAY NOT BE SOLD,  OFFERED
FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF A REGISTRATION  STATEMENT IN
EFFECT WITH RESPECT TO THE WARRANT  UNDER SUCH ACT AND  APPLICABLE  LAWS OR SOME
OTHER  EXEMPTION FROM THE  REGISTRATION  REQUIREMENTS OF SUCH ACT AND APPLICABLE
LAWS.

No. W-100__                                           Warrant to Purchase Shares

                           WARRANT TO PURCHASE SHARES
                                       of
                     BEACON ENTERPRISE SOLUTIONS GROUP INC.

      This certifies that, for value received,  _____________, or its registered
assigns  ("Holder"),  is  entitled,  subject  to the terms set forth  below,  to
purchase from Beacon Enterprise  Solutions Group Inc., a Nevada corporation (the
"Company"),  the number of Warrant  Shares  (as  defined  below) as set forth in
Section 2 of this  Warrant,  upon  surrender of this  Warrant,  at the principal
office  of the  Company,  with the  Notice  of  Exercise  attached  hereto  duly
executed, and simultaneous payment therefor in lawful money of the United States
or  otherwise as  hereinafter  provided,  at the Exercise  Price as set forth in
Section 2 below.  The term  "Warrant" as used herein shall include this Warrant,
and any warrants  delivered  in  substitution  or exchange  therefor as provided
herein.  This  Warrant  is issued in  connection  with the  issuance  of certain
Convertible Promissory Notes of the Company.

      1. Term of Warrant.  Subject to the terms and conditions set forth herein,
this Warrant shall only be  exercisable on or after the date hereof and prior to
December __, 2012.

      2. Number of Shares; Exercise Price.

            (a) The maximum number of shares of Common Stock of the Company that
may be subscribed for under this Warrant (the "Warrant Shares") shall be ______,
of which  ______  shall  initially  be vested and  exercisable  and _____  shall
initially be unvested and not exercisable.  The exercise price per Warrant Share
(the "Exercise Price") shall be $1.00.

            (b) Until the Holder demands  payment of the  outstanding  principal
balance on that certain Convertible Promissory Note dated December __, 2007 (the
"Note")  pursuant to Section 6 of the Note, _____ of the unvested Warrant Shares
(such  number to be  adjusted in  accordance  with the  provisions  of Section 7
hereof) shall vest and become  exercisable  on the 15th day of every month until
the Maturity Date (as defined in the Note). Upon the full conversion of the Note
into  Shares (as defined in the Note) or upon the  Maturity  Date (as defined in
the Note), all remaining unvested Warrant Shares hereunder shall vest and become
exercisable.  Upon any election by the Holder to demand  prepayment  of the Note
before the Maturity Date, all remaining  unvested Warrant Shares hereunder shall
be forfeited and canceled.

                                       6
<PAGE>

      3. Exercise of Warrant.

            (a) Upon the election of the Holder, the purchase rights represented
by this Warrant shall be  exercisable  with respect to all Warrant Shares vested
under Section 2 by the Holder in whole or in part during the Exercise  Period by
the  surrender  of this  Warrant and the Notice of Exercise in the form  annexed
hereto as Annex A duly  completed  and executed on behalf of the Holder,  at the
office of the Company  (or such other  office or agency of the Company as it may
designate  by notice in  writing  to the  Holder at the  address  of the  Holder
appearing on the books of the Company),  upon payment in cash or by check of the
Exercise Price of the Warrant Shares to be purchased.

            (b) This Warrant shall be deemed to have been exercised  immediately
prior to the close of  business  on the date of its  surrender  for  exercise as
provided  above,  and the person entitled to receive the Warrant Shares issuable
upon such exercise  shall be treated for all purposes as the holder of record of
such  Warrant  Shares as of the close of business  on such date.  As promptly as
practicable  on or  after  such  date and in any  event  within  ten  (10)  days
thereafter,  the Company at its expense shall issue and deliver to the person or
persons entitled to receive the same a certificate  evidencing  ownership of the
number of Warrant  Shares  issuable upon such  exercise.  In the event that this
Warrant is  exercised  in part,  the  Company at its  expense  will  execute and
deliver a new Warrant of like tenor exercisable for the number of Warrant Shares
for which this Warrant may then be exercised.

      4. No Fractional  Shares or Scrip.  No fractional  Warrant Shares or scrip
representing fractional Warrant Shares shall be issued upon the exercise of this
Warrant.  In lieu of any  fractional  Warrant  Shares to which the Holder  would
otherwise be  entitled,  the Company  shall make a cash  payment  equal to $1.00
multiplied by such fraction.

      5. Replacement of Warrant. On receipt of evidence reasonably  satisfactory
to the Company of the loss,  theft,  destruction  or mutilation of this Warrant,
the Company at its expense shall execute and deliver, in lieu of this Warrant, a
new warrant of like tenor and amount.

      6. Reservation of Shares. The Company covenants that, during the term this
Warrant is  exercisable,  the  Company  will  reserve  from its  authorized  and
unissued shares of Common Stock a sufficient number of shares of Common Stock to
provide for the  issuance of all Warrant  Shares  issuable  upon the exercise of
this Warrant and,  from time to time,  will take all steps  necessary to provide
sufficient  reserves of shares of Common Stock  issuable  upon  exercise of this
Warrant.  The Company  further  covenants  that all  Warrant  Shares that may be
issued upon the  exercise of rights  represented  by this Warrant and payment of
the Exercise  Price  pursuant to Section 3(a) hereof,  all as set forth  herein,
will be  fully  paid,  nonassessable,  free of  preemptive  rights  (other  than
preemptive  rights  which have been  waived) and free from all taxes,  liens and
charges  in  respect of the issue  thereof  (other  than taxes in respect of any
transfer occurring contemporaneously or otherwise specified herein). The Company
agrees that its issuance of this Warrant shall  constitute full authority to its
officers  who are  charged  with the duty of  executing  stock  certificates  to
execute  and  issue the  necessary  certificates  for  Warrant  Shares  upon the
exercise of this Warrant.

                                       7
<PAGE>

      7.  Adjustment of Exercise Price and Number of Shares.  The Exercise Price
and the number of Warrant Shares of the  Corporation  issuable  pursuant to such
exercise is subject to adjustment as follows:

            (a) In the event that the  Corporation  shall at any time  declare a
stock  dividend  or stock  split on the  outstanding  shares of Common  Stock in
shares of its Common Stock, then the Exercise Price and number of Warrant Shares
shall be  proportionately  adjusted so that the holder of any Warrant  exercised
after such time shall be entitled to receive  the  aggregate  number and kind of
shares which, if such Warrant had been exercised immediately prior to such time,
he would have owned upon such exercise and been entitled to receive by virtue of
such dividend.

            (b) In the event that the Corporation shall at any time subdivide or
combine the outstanding shares of the Common Stock, the Exercise Price,  initial
or adjusted,  in effect  immediately  prior to such  subdivision  or combination
shall  forthwith  be  proportionately  decreased in the case of  subdivision  or
increased in the case of combination.

            (c)  In  the   event  of  any   capital   reorganization,   sale  of
substantially  all  the  assets  of  the  Corporation,  share  exchange  or  any
reclassification  of the shares of Common Stock of the Corporation,  or in event
of any  consolidation  with or merger of the  Corporation  into or with  another
corporation,  then as a part  of  such  reorganization,  sale,  share  exchange,
reclassification,  consolidation or merger,  as the case may be, provision shall
be made so that the registered owner of the Warrant  evidenced hereby shall have
the right thereafter to receive upon the exercise thereof the kind and amount of
shares  of  stock or other  securities  or  property  which he would  have  been
entitled to receive if immediately  prior to such  reorganization,  sale,  share
exchange,  reclassification,  consolidation or merger, he had held the number of
Warrant  Shares  which  were then  issuable  upon the  exercise  of the  Warrant
evidenced  hereby,  so that the provisions set forth (including  provisions with
respect to adjustments of the Exercise Price) shall thereafter be applicable, as
nearly  as  reasonably  may be,  in  relation  to any  shares  of stock or other
property thereafter deliverable upon the exercise of the Warrant.

            (d) If the Corporation at any time makes any spin-off, split-off, or
distribution  of  assets  upon  or  with  respect  to  its  Common  Stock,  as a
liquidating or partial liquidating  dividend,  spin-off,  or by way of return of
capital,  or other than as  dividend  payable  out of  earnings  or any  surplus
legally  available  for  dividends  under the laws of the State of  Nevada,  the
holder of each Warrant then outstanding shall, upon the exercise of the Warrant,
receive,  in addition to the shares of Common Stock then issuable on exercise of
the Warrant,  the amount of such assets or other  property (or, at the option of
the  Corporation,  a sum  equal  to  the  value  thereof  at  the  time  of  the
distributions) which would have been payable to such holder had he exercised the
Warrant immediately prior to the record date for such distribution.

            (e) Upon each  adjustment  to the Exercise  Price,  the Holder shall
thereafter be entitled to purchase,  at the Exercise  Price  resulting from such
adjustment,  the number of Warrant Shares  obtained by multiplying  the Exercise
Price in effect  immediately  prior to such  adjustment by the number of Warrant
Shares  purchasable  pursuant hereto  immediately prior to such adjustment,  and
dividing  the  product  thereof  by  the  Exercise  Price  resulting  from  such

                                       8
<PAGE>

adjustment.  No  fractional  shares of  Common  Stock  shall be issued  upon the
exercise of the Warrant.  The Corporation shall round all fractional shares down
to the next whole share.

            (f) If any change in the outstanding  Common Stock of the Company or
any other event  occurs as to which the other  provisions  of this Section 7 are
not strictly  applicable or if strictly  applicable would not fairly protect the
purchase rights of the Holder in accordance with such provisions, then the Board
of Directors of the Company  shall make an adjustment in the number and class of
shares issuable under the Warrant, the Exercise Price or the application of such
provisions,  so as to protect such purchase rights as aforesaid.  The adjustment
shall be such as will  give the  Holder  upon  exercise  for the same  aggregate
Exercise  Price  the total  number,  class and kind of  shares,  capital  stock,
securities  and other  property  as it would  have  owned had the  Warrant  been
exercised  for Warrant  Shares  prior to the event and had it  continued to hold
such Warrant Shares until after the event requiring adjustment.

      8. Rights as  Stockholder.  As a holder of this Warrant,  the Holder shall
not be  entitled  to vote or  receive  distributions  or be deemed the holder of
Warrant  Shares or any other  securities  of the Company that may at any time be
issuable on the exercise  hereof for any purpose,  nor shall anything  contained
herein be construed to confer upon the Holder,  as such,  any of the rights of a
stockholder of the Company or any right to vote for the election of directors or
upon any matter submitted to stockholders at any meeting thereof,  or to give or
withhold  consent to any corporate  action  (whether upon any  recapitalization,
issuance  of  shares,   reclassification  of  shares,   consolidation,   merger,
conveyance,  or  otherwise)  or to  receive  notice of  meetings,  or to receive
distributions or subscription  rights or otherwise until this Warrant shall have
been exercised as provided herein.

      9. Transfer of Warrant.

            (a) Warrant  Register.  The Company  will  maintain a register  (the
"Warrant Register") containing the names and addresses of the Holder or Holders.
Any Holder of this  Warrant or any  portion  thereof  may change its  address as
shown on the Warrant  Register by written notice to the Company  requesting such
change. Any notice or written communication required or permitted to be given to
the  Holder  may be  delivered  or given by mail to such  Holder as shown on the
Warrant  Register and at the address shown on the Warrant  Register.  Until this
Warrant is transferred on the Warrant  Register of the Company,  the Company may
treat the Holder as shown on the Warrant  Register as the absolute owner of this
Warrant for all purposes, notwithstanding any notice to the contrary.

            (b)  Transferability and  Nonnegotiability of Warrant.  This Warrant
may not be transferred or assigned in whole or in part without  compliance  with
all  applicable  federal and state  securities  laws by the  transferor  and the
transferee  (including  the delivery of  investment  representation  letters and
legal opinions reasonably  satisfactory to the Company, if such are requested by
the  Company).  Subject  to the  provisions  of this  Warrant  with  respect  to
compliance  with the  Securities  Act of 1933, as amended (the "Act"),  title to
this Warrant may be  transferred  by  endorsement  (by the Holder  executing the
Assignment  Form annexed hereto as Annex B) and delivery in the same manner as a
negotiable instrument transferable by endorsement and delivery.

                                       9
<PAGE>

            (c)  Exchange  of Warrant  Upon a  Transfer.  On  surrender  of this
Warrant for exchange,  properly  endorsed on the Assignment  Form and subject to
the provisions of this Warrant with respect to compliance  with the Act and with
the  limitations on assignments  and transfers  contained in this Section 9, the
Company  at its  expense  shall  issue to or on the  order  of the  Holder a new
warrant or warrants  of like  tenor,  in the name of the Holder or as the Holder
(on payment by the Holder of any applicable  transfer taxes) may direct, for the
number of Warrant Shares issuable upon exercise hereof.

            (d) Compliance with Securities Laws.

                  (i)  The  Holder  of  this  Warrant,   by  acceptance  hereof,
            acknowledges  that this Warrant and the Warrant  Shares to be issued
            upon exercise  hereof are being acquired solely for the Holder's own
            account  and  not  as  a  nominee  for  any  other  party,  and  for
            investment,  and that the Holder will not offer,  sell or  otherwise
            dispose of this  Warrant  or any  Warrant  Shares to be issued  upon
            exercise hereof except under circumstances that will not result in a
            violation of the Act or any state  securities laws. Upon exercise of
            this Warrant, the Holder shall, if requested by the Company, confirm
            in writing, in a form satisfactory to the Company,  that the Warrant
            Shares so purchased are being  acquired  solely for the Holder's own
            account and not as a nominee for any other  party,  for  investment,
            and not  with a view  toward  distribution  or  resale  and that the
            Holder is an "accredited  investor" as defined in Section 501 of the
            regulations  adopted  under the Act and that the  Warrant  Shares so
            purchased may be issued without registration under the Act and under
            applicable state securities laws.

                  (ii) All Warrant  Shares  issued upon exercise  hereof,  if in
            certificated  form,  shall be stamped or imprinted  with a legend in
            substantially the following form (in addition to any legend required
            by state securities laws):

            THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE
            SECURITIES  ACT  OF  1933,  AS  AMENDED,  OR  ANY  APPLICABLE  STATE
            SECURITIES  LAWS. THESE SECURITIES MAY NOT BE SOLD OR TRANSFERRED IN
            THE ABSENCE OF SUCH  REGISTRATION  OR AN EXEMPTION  THEREFROM  UNDER
            SAID ACT AND APPLICABLE LAWS.

            (e) The Warrant shall not be transferred by the Holder,  in whole or
in part, unless a convertible  promissory note in a ratable principal amount (to
that of the Note held by the Holder),  and on the same other terms as such Note,
is also transferred.

      10. Amendments.

            (a)  This  Warrant  and any term  hereof,  may be  changed,  waived,
discharged  or  terminated  only by an  instrument  signed by the Holder and the
Company.

                                       10
<PAGE>

            (b) No  waivers  of,  or  exceptions  to,  any  term,  condition  or
provisions of this Warrant, in any one or more instances, shall be deemed to be,
or construed as, a further or continuing  waiver of any such term,  condition or
provision.

      11. Miscellaneous.

            (a) This Warrant  shall be governed by and  construed in  accordance
with the laws of the Commonwealth of Kentucky, without reference to the conflict
of law principles thereof.

            (b) This Warrant shall bind the Company, its successors and assigns,
and shall  benefit and bind the Holder,  the Holder's  successors  and permitted
assigns.

            (c) The Section  headings in this Warrant have been included  solely
for ease of  reference  and shall not be  considered  in the  interpretation  or
construction of this Warrant. All references in this Warrant to "Sections" shall
be construed as references to numbered Sections of this Warrant.

            (d) Any notice or delivery  required or  permitted  by this  Warrant
shall be deemed  given or made for all  purposes  of this  Warrant  when (1) the
notice is in writing, and (2) the notice or the delivery is delivered by hand or
is mailed  by  registered  mail,  return  receipt  requested,  addressed  to the
intended  recipient  at (A) in  the  Company's  case,  the  Company's  principal
executive office, or (B) in the Holder's case, the Holder's address as set forth
in the Company's records or at such other address as the Holder may designate by
written notice to the Company.

                                  [END OF TEXT]

                                       11
<PAGE>

      IN WITNESS WHEREOF,  the Company has caused this Warrant to be executed by
its officer thereunto duly authorized as of December __, 2007.

      12.

                              BEACON ENTERPRISE SOLUTIONS GROUP INC.,
                              a Nevada corporation

                              By:
                                 -----------------------------------------------
                                 Bruce Widener, Chief Executive Officer

                                       12
<PAGE>

                                     Annex A

                               NOTICE OF EXERCISE

To: __________

      (1)______The undersigned hereby (A) elects to purchase _____ shares of the
Common Stock of Beacon  Enterprise  Solutions Group Inc., a Nevada  corporation,
pursuant to the provisions of the attached Warrant, and tenders herewith payment
of the purchase price for such shares in full.

      (2)______In  exercising this Warrant,  the undersigned hereby confirms and
acknowledges  that the  Shares  to be  issued  upon  exercise  hereof  are being
acquired  solely for the account of the undersigned and not as a nominee for any
other party, and for investment,  and that the undersigned will not offer,  sell
or otherwise dispose of any such Shares except under circumstances that will not
result  in a  violation  of the  Securities  Act of  1933,  as  amended,  or any
applicable state securities laws.

                                           -------------------------------------
                                           (Name)

-----------------------                    -------------------------------------
(Date)                                     (Signature)

                                       13
<PAGE>

                                     Annex B

                                 ASSIGNMENT FORM

      FOR VALUE  RECEIVED,  the  undersigned  registered  owner of this  Warrant
hereby  sells,  assigns and transfers  unto the Assignee  named below all of the
rights of the undersigned  under the within Warrant,  with respect to the number
of shares set forth below:

Name of Assignee                                                   Address

                                                                   No. of Shares

      The undersigned also represents that, by assignment  hereof,  the Assignee
acknowledges  that this Warrant and the shares to be issued upon exercise hereof
are being acquired for investment and that the Assignee will not offer,  sell or
otherwise  dispose  of this  Warrant or any  shares to be issued  upon  exercise
hereof  except under  circumstances  which will not result in a violation of the
Securities Act of 1933, as amended, or any state securities laws.

Date:
     ---------------

                                           -------------------------------------
                                           Signature of Holder

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