Document:

exhibit_10-7.htm

    Exhibit
      10.7

     

    AMENDED
      AND RESTATED EXECUTIVE EMPLOYMENT AGREEMENT

     

    This
      Amended And Restated Executive Employment Agreement
(“Agreement”), originally made by and between
      Bionovo, Inc. (the “Company”) and Mary Tagliaferri
      (“Executive”), effective as of January 1, 2008 (the
“Effective Date”), is hereby amended
      and restated in
      its entirety effective as of January 1, 2008 to read as follows:

     

    Recitals

     

    Whereas,
      Executive is currently employed by the Company as its President, Chief Medical
      Officer and Chief Regulatory Officer;

     

    Whereas,
      Executive’s prior employment agreement with the Company, dated July 1, 2004,
      expired as of July 1, 2007; and

     

    Whereas,
      the Company desires to continue to employ Executive as its President, Chief
      Medical Officer and Chief Regulatory Officer, and Executive is willing to
      continue such employment by the Company, on the terms and subject to the
      conditions set forth in this Agreement.

     

    Agreement

     

    Now,
      Therefore, in consideration of the mutual promises and subject to the
      terms and conditions set forth herein, the parties hereto agree as
      follows:

     

    
      	
              1.  

            	
              POSITION;
                DUTIES; LOCATION.

            

    

     

    Executive
      agrees to be employed by and to serve the Company as its President, Chief
      Medical Officer and Chief Regulatory Officer, and the Company agrees to employ
      Executive in such capacities.  Executive shall have the powers and
      shall perform the services and duties that are customarily associated with
      these
      positions.  Executive agrees to devote substantially all of
      Executive’s time, energy and ability to the business of the
      Company.  Executive may devote such time that Executive deems
      appropriate for managing Executive’s own investment portfolio and may with the
      approval of the Board of Directors of the Company (the
“Board”) be a member of the board of directors of a
      for-profit company, non-profit, civic or charitable organizations so long as
      such service does not materially interfere or conflict with Executive’s duties
      hereunder.  Executive shall perform the duties assigned to Executive
      to the best of Executive’s ability and in the best interests of
      Company.  Executive will report to, be responsible to and obey the
      lawful directives of the Board.  Executive shall be based in
      Emeryville, California, except for required travel on the Company’s
      business.

     

    
      	
              2.  

            	
              COMPENSATION
                AND OTHER BENEFITS.

            

    

     

    In
      consideration of Executive’s employment, and except as otherwise provided
      herein, Executive shall receive from the Company the compensation and benefits
      described in this Section 2.  Executive authorizes the Company to
      deduct and withhold from all compensation paid to Executive any and all sums
      required to be deducted or withheld by the Company pursuant to the provisions
      of
      any federal, state, or local law, regulation, ruling, or ordinance, including,
      but not limited to, income tax withholding and payroll taxes.

     

    2.1  Base
      Salary.  Subject to the terms and conditions set forth
      herein, the Company agrees to pay Executive an annual base salary equal to
      Three
      Hundred Seventy-Five Thousand Dollars ($375,000), less standard payroll
      deductions and withholdings, payable on the Company’s regular payroll schedule
      (as may be adjusted pursuant to this Agreement from time to time, the
“Base Salary”).  The Company agrees that
      Executive’s base salary will be reviewed annually by the Board and, if
      appropriate (as determined by the Board in its sole discretion), will be
      increased therefrom.

     

    2.2  Bonus.  Executive
      shall be eligible to earn a bonus for each calendar year in an amount up to
      forty percent (40%) of Executive’s Base Salary.  Whether Executive
      receives any such bonus, and the amount of any such bonus, shall be determined
      by the Board (or a committee thereof) in its sole discretion, based upon its
      evaluation of Executive’s performance and the performance of the Company during
      the year, and such other factors and conditions as the Board (or a committee
      thereof) deems relevant.  Any such bonus shall be payable within the
      first sixty (60) days of the calendar year immediately following the year for
      which the bonus has been awarded.  Bonuses are not deemed earned and
      payable unless Executive is employed by the Company on the payment
      date.  Accordingly, Executive will not earn any bonus (including a
      prorated bonus) for the year if Executive’s employment terminates for any reason
      before any bonus is paid.

     

    2.3  Equity.  Executive
      shall be eligible for additional equity grants in the future from time to time
      as shall be determined by the Board (or a committee thereof) in its sole
      discretion, and subject to such vesting, exercisability, and other provisions
      as
      the Board (or a committee thereof) may determine in its sole
      discretion.

     

    2.4  Paid
      Time Off.  Executive shall be entitled to accrue four (4)
      weeks of paid vacation during each calendar year, prorated for partial
      years.  Any accrued vacation not taken during the year may be carried
      forward to subsequent years; provided that Executive may not accrue more than
      ten (10) weeks of unused vacation at any time.  Executive will be
      eligible for twenty (20) sick days per calendar year.  Sick days will
      not be carried over to the following year, nor will they be paid out upon
      termination.

     

    2.5  Automobile.  The
      Company will pay for Executive’s leased vehicle in an amount not to exceed Seven
      Hundred Fifty Dollars ($750) per month.

     

    2.6  Other
      Benefits.  Executive shall be eligible to participate in such
      of the Company’s benefit plans as may be made available to executives of the
      Company, including, without limitation, health plans, dental plans, vision
      plans
      and retirement plans (if any), subject to the terms and conditions of such
      plans.  With respect to life insurance, the Company shall pay
      Executive’s premiums for up to $1,000,000 in coverage, with Executive
      responsible for paying the premiums for any coverage over that
      amount.

     

    2.7  Reimbursement
      for Expenses.  The Company shall reimburse Executive for all
      reasonable out-of-pocket business expenses incurred by Executive for the purpose
      of and in connection with the performance of her services pursuant to this
      Agreement.  Executive shall be entitled to such reimbursement upon the
      presentation by Executive to the Company of vouchers or other statements
      itemizing such expenses in reasonable detail consistent with the Company’s
      policies.

     

    
      	
              3.  

            	
              TERMINATION;
                SEVERANCE.

            

    

     

    3.1  Termination.  Either
      the Company or Executive may terminate Executive’s employment at any time, with
      or without Cause or Good Reason, subject to the terms and conditions set forth
      herein.

     

    3.2  Compensation
      and Benefits upon Termination.  Upon the termination of
      Executive’s employment for any reason, the Company shall pay Executive all of
      Executive’s accrued and unused vacation and unpaid Base Salary earned through
      Executive’s last day of employment (the “Separation
      Date”).

     

    3.3  Termination
      for Cause.  The Company shall be entitled to terminate
      Executive’s employment for Cause (as defined herein) immediately upon written
      notice to Executive.  In that event, the Company shall pay Executive
      the compensation set forth in Section 3.2 of this Agreement, and Executive
      shall
      not be entitled to any further compensation from the Company, including
      severance benefits.

     

    3.4  Termination
      Without Cause.  The Company shall be entitled to terminate
      Executive’s employment without Cause (as defined herein) immediately upon
      written notice to Executive.  In that event, and provided such
      termination constitutes a “separation from service” (within the meaning of
      Treasury Regulation Section 1.409A-1(h)), Executive shall be eligible for the
      following severance benefits:

     

    (a)  Severance
      Payments.  The Company shall pay Executive severance in an
      amount equal to (i) One year of Executive’s Base Salary, plus (ii) an amount
      equal to Executive’s target bonus for the year, prorated for the number of
      months during the calendar year that Executive was actually employed by the
      Company.  This amount shall be paid in substantially equal
      installments on the Company’s regular payroll schedule (subject to standard
      deductions and withholdings) over the twelve (12) month period following the
      Separation Date; provided, however, that no payments will be made prior to
      the
      effective date of the release referenced in Section 3.8 below.  On the
      first payroll date following the effective date of the release, the Company
      will
      pay Executive the payments that Executive would have received on or prior to
      such date in a lump sum under the original schedule but for the delay in the
      effectiveness of the release, with the balance of the cash severance being
      paid
      as originally scheduled.  Each such installment will be deemed a
      separate “payment” for purposes of Section 409A of the Internal Revenue
      Code.

     

    (b)  COBRA
      Payments.  If Executive timely elects continued coverage
      under COBRA, then the Company shall pay the COBRA premiums necessary to continue
      Executive’s health insurance coverage in effect for herself and her eligible
      dependents on the Separation Date for a period of twelve (12) months following
      the Separation Date, provided that such COBRA reimbursement shall terminate
      on
      such earlier date as Executive is no longer eligible for COBRA
      coverage.

     

    (c)  Termination
      Without Cause Following a Change in Control.  If the Company
      terminates Executive’s employment without Cause on or within twelve (12) months
      after the effective date of a Change in Control (as defined herein), and
      provided such termination constitutes a “separation from service” (within the
      meaning of Treasury Regulation Section 1.409A-1(h)), then Executive shall
      receive the severance payments set forth in Section 3.4(a) and (b), on the
      schedules set forth in those Sections, provided, however, that the
      target bonus amount described in Section 3.4(a) shall not be prorated, and
      therefore Executive shall receive an amount equal to Executive’s target bonus
      for the year in which Executive’s employment is
      terminated.   Additionally, the Company shall accelerate the
      vesting of any unvested shares subject to any stock options granted to Executive
      after the Effective Date such that all shares shall be deemed fully vested
      and
      exercisable as of Executive’s last day of employment.

     

    3.5  Termination
      upon Death or Disability.  The Agreement shall terminate
      immediately upon Executive’s death or Disability (as defined
      herein).  In that event, the Company shall pay Executive the
      compensation set forth in Section 3.2 of this Agreement, and Executive shall
      not
      be entitled to any further compensation from the Company, including severance
      benefits.

     

    3.6  Resignation
      Without Good Reason.  Executive shall be entitled to resign
      without Good Reason (as defined herein) at any time upon written notice to
      the
      Company thirty (30) days prior to the effective date of such resignation, which
      date shall be specified in Executive’s notice of resignation.  In that
      event, the Company shall pay Executive the compensation set forth in Section
      3.2
      of this Agreement, and Executive shall not be entitled to any further
      compensation from the Company, including severance benefits.

     

    3.7  Resignation
      for Good Reason.  Executive shall be entitled to resign for
      Good Reason (as defined herein) at any time.  In that event, and
      provided such termination constitutes a “separation from service” (within the
      meaning of Treasury Regulation Section 1.409A-1(h)), Executive shall be entitled
      to the compensation set forth in Section 3.2 of this Agreement, as well as
      the
      severance benefits set forth in Sections 3.4(a) and (b) of this
      Agreement.  If such resignation for Good Reason occurs within twelve
      (12) months after the effective date of a Change in Control (as defined herein),
      then Executive shall receive the severance benefits as set forth in Section
      3.4(c).

     

    3.8  Release.  As
      a condition to receipt of any severance benefits under this Agreement, Executive
      shall be required to provide the Company with an effective general release
      of
      any and all known and unknown claims against the Company and its officers,
      directors, Executives, shareholders, parents, subsidiaries, successors, agents,
      attorneys and affiliates, in a form acceptable to the
      Company.  Executive must execute this release, and allow it to become
      effective, within thirty (30) days after Executive’s last day of employment with
      the Company.

     

    3.9  Section
      409A Compliance.  Notwithstanding the foregoing, if the
      Company (or, if applicable, the successor entity thereto) determines that the
      severance payments and benefits provided above upon a separation from service
      constitute “deferred compensation” under Section 409A of the Internal Revenue
      Code (together, with any state law of similar effect, “Section 409A”) and if
      Executive is a “specified employee” of the Company or any successor entity
      thereto as of the separation from service, as such term is defined in Section
      409A(a)(2)(B)(i) (a “Specified Employee”), then,
      solely to the extent necessary to avoid the incurrence of the adverse personal
      tax consequences under Section 409A, the timing of the severance (or any portion
      thereof) shall be delayed as follows: on the earlier to occur of (i) the date
      that is six months and one day after the date of separation of service or
      (ii) the date of Executive’s death (such earlier date, the
“Delayed Initial Payment Date”), the Company (or the
      successor entity thereto, as applicable) shall (A) pay to Executive a lump
      sum
      amount equal to the sum of the severance payments that Executive would otherwise
      have received through the Delayed Initial Payment Date if the commencement
      of
      the payment of the severance had not been delayed pursuant to this paragraph
      and
      (B) commence paying the balance of the severance in accordance with the payment
      schedule set forth above.  It is intended that each installment of the
      severance payments and benefits provided for in this Agreement is a separate
      “payment” for purposes of Section 409A. For the avoidance of doubt, it is
      intended that the severance satisfies, to the greatest extent possible, the
      exemptions from the application of Section 409A provided under Treasury
      Regulation 1.409A-1(b)(4) and 1.409A-1(b)(9).

     

    3.10  Definitions.  For
      purposes of this Agreement, the following definitions shall apply:

     

    (a)  Disability.  The
      term “disability” shall mean a physical or mental
      disability that renders Executive unable to perform one or more of the essential
      functions of her job, as determined by the Board in its sole discretion, for
      a
      period of 180 days during any 365-day period.

     

    (b)  Cause.  “Cause”
      shall mean: (i) theft, forgery, fraud, misappropriation, embezzlement, moral
      turpitude or any other act of material misconduct by Executive against the
      Company or any of its affiliates which causes material damage to the Company;
      (ii) willful and knowing violation by Executive of any rules or regulations
      of
      any governmental or regulatory body, which is or could reasonably be expected
      to
      be materially injurious to the Company; (iii) conviction of Executive of, or
      plea of guilty or nolo contendere by Executive to, a felony or any crime of
      theft, forgery, fraud, misappropriation, embezzlement or moral turpitude; (iv)
      continued failure to perform substantially Executive’s duties for the Company;
      provided, however, that Executive must receive reasonable written notification
      of the Company’s intended actions specifically describing the alleged events,
      activities or omissions giving rise thereto, and a reasonable opportunity (of
      not less than fourteen (14) days) to cure such breach (if capable of cure);
      or
      (v) any breach by Executive of this Agreement or other agreements between
      Executive and the Company that causes a material adverse consequence on the
      business, properties, assets, results of operations, or condition (financial
      or
      otherwise) of the Company taken as a whole; provided, however, that Executive
      must receive reasonable written notification of the Company’s intended actions
      specifically describing the alleged events, activities or omissions giving
      rise
      thereto, and thirty (30) days to cure such breach (if capable of
      cure).

     

    (c)  Good
      Reason.  “Good Reason” shall mean
      the Company: (i) materially reduces Executive’s responsibilities without
      Executive’s consent; (ii) materially reduces Executive’s Base Salary or
      materially and adversely affects the working conditions of Executive; or (iii)
      materially breaches a material term of this Agreement; provided, however, that
      Executive must provide the Company with written notification of the alleged
      events, activities or omissions providing the basis for Executive’s resignation
      within thirty (30) days following the first knowledge of such events, activities
      or omissions, allow the Company thirty (30) days to cure such events, activities
      or omissions (if curable) and resign no later than thirty (30) days after the
      expiration of the cure period.

     

    (d)  Change
      in Control.  A “Change in Control”
means the consummation, in a single transaction
      or in a series of related
      transactions, of any one or more of the following events:

     

    (i)  a
      sale,
      lease or other disposition of all or substantially all of the assets of the
      Company, other than a sale, lease or other disposition of all or substantially
      all of the assets of the Company to an entity, more than fifty percent (50%)
      of
      the combined voting power of the voting securities of which are owned by
      stockholders of the Company in substantially the same proportions as their
      ownership of the outstanding voting securities of the Company immediately prior
      to such sale, lease or other disposition;

     

    (ii)  a
      merger,
      consolidation or similar transaction involving (directly or indirectly) the
      Company and, immediately after the consummation of such merger, consolidation
      or
      similar transaction, the stockholders of the Company immediately prior thereto
      do not own, directly or indirectly, either (A) outstanding voting securities
      representing more than fifty percent (50%) of the combined outstanding voting
      power of the surviving entity in such merger, consolidation or similar
      transaction or (B) more than fifty percent (50%) of the combined outstanding
      voting power of the parent of the surviving entity in such merger, consolidation
      or similar transaction, in each case in substantially the same proportions
      as
      their ownership of the outstanding voting securities of the Company immediately
      prior to such transaction; or

     

    (iii)  any
      “Exchange Act Person” becomes the owner, directly or
      indirectly, of securities of the Company representing more than fifty percent
      (50%) of the combined voting power of the Company’s then outstanding securities
      other than by virtue of a merger, consolidation or similar
      transaction.  An “Exchange Act Person” means any natural person,
      entity or “group” (within the meaning of Section 13(d) or 14(d) of the
      Securities Exchange Act of 1934, as amended), except that “Exchange Act Person”
shall not include (1) the Company or any subsidiary of the Company, (2) any
      employee benefit plan of the Company or any subsidiary of the Company or any
      trustee or other fiduciary holding securities under an employee benefit plan
      of
      the Company or any subsidiary of the Company, (3) an underwriter temporarily
      holding securities pursuant to an offering of such securities, (4) an entity
      owned, directly or indirectly, by the stockholders of the Company in
      substantially the same proportions as their ownership of stock of the Company;
      or (5) any natural person, entity or “group” (within the meaning of Section
      13(d) or 14(d) of the Securities Exchange Act of 1934, as amended) that, as
      of
      the effective date of this Plan, is the owner, directly or indirectly, of
      securities of the Company representing more than fifty percent (50%) of the
      combined voting power of the Company’s then outstanding securities.

     

    
      	
              4.  

            	
              PROPRIETARY
                INFORMATION AND INVENTIONS
                AGREEMENT.

            

    

     

    Executive
      shall be required to continue compliance with her obligations under the
      proprietary information and inventions agreement that Executive previously
      executed with the Company.

     

    
      	
              5.  

            	
              COMPANY
                POLICIES.

            

    

     

    Executive
      shall be required to continue compliance with the Company’s policies and
      procedures established by the Company from time to time.

     

    
      	
              6.  

            	
              ASSIGNABILITY.

            

    

     

    This
      Agreement is binding upon and inures to the benefit of the parties and their
      respective heirs, executors, administrators, personal representatives,
      successors and assigns.  The Company may assign its rights or delegate
      its duties under this Agreement at any time and from time to
      time.  However, the parties acknowledge that the availability of
      Executive to perform services and the covenants provided by Executive hereunder
      are personal to Executive and have been a material consideration for the Company
      to enter into this Agreement.  Accordingly, Executive may not assign
      any of Executive’s rights or delegate any of Executive’s duties under this
      Agreement, either voluntarily or by operation of law, without the prior written
      consent of the Company, which may be given or withheld by the Company in its
      sole and absolute discretion.

     

    
      	
              7.  

            	
              NOTICES.

            

    

     

    All
      notices and other communications under this Agreement shall be in writing and
      shall be given by facsimile, first class mail (certified or registered with
      return receipt requested), or Federal Express overnight delivery, and shall
      be
      deemed to have been duly given three days after mailing or twenty-four (24)
      hours after transmission of a facsimile or Federal Express overnight delivery
      (if the receipt of the facsimile or Federal Express overnight delivery is
      confirmed).

     

    
      	
              8.  

            	
              ARBITRATION.

            

    

     

    To
      ensure
      the timely and economical resolution of disputes that may arise in connection
      with Executive’s employment with the Company, Executive and the Company agree
      that any and all disputes, claims, or causes of action arising from or relating
      to the enforcement, breach, performance, negotiation, execution, or
      interpretation of this Agreement, Executive’s employment, or the termination of
      Executive’s employment, shall be resolved to the fullest extent permitted by law
      by final, binding and confidential arbitration, by a single arbitrator, in
      San
      Francisco, California, conducted by JAMS under the then applicable JAMS
      rules.  By agreeing to this arbitration procedure, both Executive and
      the Company waive the right to resolve any such dispute through a trial by
      jury
      or judge or administrative proceeding.  The arbitrator shall: (a) have
      the authority to compel adequate discovery for the resolution of the dispute
      and
      to award such relief as would otherwise be permitted by law; and (b) issue
      a
      written arbitration decision, to include the arbitrator’s essential findings and
      conclusions and a statement of the award.  The arbitrator shall be
      authorized to award any or all remedies that Executive or the Company would
      be
      entitled to seek in a court of law.  The Company shall pay all JAMS’
arbitration fees in excess of the amount of court fees that would be required
      if
      the dispute were decided in a court of law.  Nothing in this Agreement
      is intended to prevent either Executive or the Company from obtaining injunctive
      relief in court to prevent irreparable harm pending the conclusion of any such
      arbitration.

     

    
      	
              9.  

            	
              MISCELLANEOUS.

            

    

     

    9.1  Entire
      Agreement.  This Agreement contains the full, complete, and
      exclusive embodiment of the entire agreement of the parties with regard to
      the
      subject matter hereof and supersedes all prior communications, representations,
      or agreements, oral or written, and all negotiations, conversations or
      discussions between or among the parties relating to this
      Agreement.  Executive has not entered into this Agreement in reliance
      on any representations, written or oral, other than those contained
      herein.  Any ambiguity in this document shall not be construed against
      either party as the drafter.

     

    9.2  Amendment.  This
      Agreement may not be amended except by an instrument in writing duly executed
      by
      the parties hereto.

     

    9.3  Applicable
      Law; Choice of Forum.  This Agreement has been made and
      executed under, and will be construed and interpreted in accordance with, the
      laws of the State of California.

     

    9.4  Provisions
      Severable.  Every provision of this Agreement is intended to
      be severable from every other provision of this Agreement.  If any
      provision of this Agreement is held to be invalid, illegal or unenforceable,
      in
      whole or in part, such invalidity, illegality or unenforceability shall not
      affect the other provisions of this Agreement; and this Agreement shall be
      construed as if such invalid, illegal or unenforceable provision had never
      been
      contained herein except to the extent that such provision may be construed
      and
      modified so as to render it valid, lawful, and enforceable in a manner
      consistent with the intent of the parties to the extent compatible with the
      applicable law as it shall then appear.

     

    9.5  Non-Waiver
      of Rights and Breaches.  Any waiver by a party of any breach
      of any provision of this Agreement will not be deemed to be a waiver of any
      subsequent breach of that provision, or of any breach of any other provision
      of
      this Agreement.  No failure or delay in exercising any right, power,
      or privilege granted to a party under any provision of this Agreement will
      be
      deemed a waiver of that or any other right, power or privilege.  No
      single or partial exercise of any right, power or privilege granted to a party
      under any provision of this Agreement will preclude any other or further
      exercise of that or any other right, power or privilege.

     

    9.6  Headings.  The
      headings of the Sections and Paragraphs of this Agreement are inserted for
      ease
      of reference only, and will have no effect in the construction or interpretation
      of this Agreement.

     

    9.7  Counterparts.  This
      Agreement and any amendment or supplement to this Agreement may be executed
      in
      two or more counterparts, each of which will constitute an original but all
      of
      which will together constitute a single instrument.  Transmission by
      facsimile of an executed counterpart signature page hereof by a party hereto
      shall constitute due execution and delivery of this Agreement by such
      party.

     

    9.8  Indemnification.  In
      addition to any rights to indemnification to which Executive is entitled under
      the Company’s Charter and By-Laws, the Company shall indemnify Executive at all
      times during and after Executive’s employment to the maximum extent permitted
      under applicable state law.

     

    In
      Witness Whereof, the parties hereto have caused this Agreement, as
      amended and restated herein, to be duly executed on the dates below, effective
      as of the Effective Date.

     

    Bionovo,
      Inc.                                                                           Mary
      Tagliaferri

     

    By:      /s/
      Tom Chesterman,
      MBA                                By:/s/ Mary
      Tagliaferri

     

    Name:  Tom
      Chesterman, MBA

    
      Title:   
        Senior Vice President

      
        Chief
          Financial Officer,

        Secretary

      

       

      Date:                      
        12.31.08fs1ex10i_halberdcorp.htm

    Exhibit
10.1

     

    THIS
NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
"ACT"), OR UNDER ANY APPLICABLE STATE SECURITIES LAW AND MAY NOT BE SOLD,
TRANSFERRED OR ASSIGNED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT
UNDER THE ACT FOR THIS NOTE, OR AN EXEMPTION FROM REGISTRATION
THEREUNDER.

     

    CONVERTIBLE PROMISSORY
NOTE

     

      $                               

    

     

    November
     ,2007

    Huntington
Woods, Michigan

        

        For value
received, SELLMYBUSINESSNOW.COM,
Inc., a Michigan corporation (the "Company"),promises to pay to                   ,a
Michigan resident

    ("Holder"),
the aggregate outstanding principal amount of                    
THOUSAND
00/100 DOLLARS ($          ) (the
"Borrowing") under this Note. The unpaid principal
balance of this Note along with accrued interest shall be paid on the earlier of
(a) the Company registers any of its securities under the Securities Act of 1933
or (b) eighteen months after the date of this Note ("Maturity Date"). This Note
shall bear interest at the amount or rate equal to ten percent (10%) per
annum.

     

    This Note
is issued pursuant to that certain Loan Agreement by and among the Company, the
Holder and others dated as of the November        ,
2007 (the "Loan Agreement"). This Note is

     

    subject
to the following terms and conditions:

     

    1.             Default.
The Borrowing, together with accrued and unpaid interest thereon, if any,
shall become immediately due and payable upon (a) the failure of the Company to
pay all outstanding principal and accrued, but unpaid interest, within ten (10)
days of when it is due; or (b) a breach of the Loan Agreement (each, an "Event
of Default"). Upon an Event of Default, the outstanding principal amount hereof,
plus any heretofore accrued but unpaid interest, shall bear interest at a rate
equal to twelve percent (12%) per annum, subject to the limitations of Section 9
hereof.

     

    2.             Conversion.
This Note is convertible into shares of the Company's common stock on
the terms, and subject to the conditions, set forth in this Section
2.

     

    (a)    Conversion
at Election of Holder. Commencing on the date hereof and through
the
Maturity Date, at any time, the Holder may convert all of the outstanding
principal amount of this Note
into                 shares
of common stock of the Company ("Shares").

     

    (b)             Conversion
Notice. The Company shall be given notice of the intent of Holder to
convert this Note under Section 2(a) by way of the form of conversion notice
attached hereto as Annex A (a
"Conversion Notice").

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

       

    

    (c)             Issuance
of Shares. Upon the occurrence of a conversion specified in this Section
2, this Note shall be converted into the applicable Shares without any further
action required by any party. Lender shall surrender this Note and the
Conversion Notice at the office of the
Company. Upon receipt of this Note and the Conversion Notice, then on the date
of conversion specified in the Conversion Notice (in any case, the "Conversion
Date"), the rights of Holder (other than its rights to receive the Shares) shall
cease, and, as soon as possible on or after the Conversion Date, and in any
event within ten (10) Business Days of the Conversion Date, the Company shall,
issue and deliver to Holder a certificate representing the Shares the Holder
owns by virtue of such conversion. In addition, on the Conversion Date, the
Company shall pay to Holder all unpaid interest accrued on the unpaid principal
balance of this Note from the date of the last interest payment to the date of
conversion, and all other amounts payable hereunder of the Loan.

     

    (d)     Cancellation
of Note. Upon the conversion of the entire unpaid principal amount of the
Note pursuant to this Section 2, this Note shall be canceled and shall be deemed
of no further force or effect, other than with respect to Lender's rights to
receive the Shares in accordance with Section 2(c) and Lender's rights with
respect to a default by any Borrower under this Note, the Loan Agreement or any
other Loan Documents.

     

    3.            Payment;
Prepayment. All payments shall be made in lawful money of the United
States of America at such place as 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 prepay the interest on the Borrowing without penalty at any time
during the term of this Note and any prepayment shall be applied to accrued
interest on the unpaid Borrowing. The Company may not prepay the principal
balance.

     

    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 permitted
assigns of the parties. This Note shall not be transferred or assigned by the
Company without the Holder's express written permission. Subject to applicable
securities laws and the terms and conditions thereof, 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 reasonably satisfactory to the Company. 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 Michigan, without giving
effect to principles of conflicts of law and notwithstanding the fact that
Company or Holder is or may hereafter become domiciled in a different state. All
actions under this Note shall be taken in a court of competent jurisdiction
within the Circuit Court of Oakland County, Michigan, or the United States
Federal District Court sitting in Detroit, which courts shall have the exclusive
jurisdiction and venue for any and all said claims, disputes, controversies,
suits or actions, and such courts are a convenient forum and the parties will
not seek to transfer the action to any other court.

     

    6.             Notices.
Any notice required or permitted by this Note shall be made in the manner
set forth in the Purchase Agreement.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

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

     

    8.     Waiver.
The Company hereby waives presentment for payment, protest, notice,
notice of protest and notice of dishonor and agrees to remain and continue to be
bound for the payment of all sums due under this Note notwithstanding any
renewals or extension of the time for payment of sums due hereunder or any
changes by way of release, surrender or substitution of any security for this
Note, and waives all and every kind of notice of such extensions or changes. No
delay or omission on the part of Holder in exercising any right hereunder shall
operate as a waiver of an Event of Default. A waiver of an Event of Default in
any provision of this Note shall not operate or be construed as a waiver of any
subsequent Event of Default. Each and every right, remedy and power granted
herein or allowed by law shall be cumulative and not exclusive of any other. The
tender and acceptance of any partial payment or partial performance hereunder
shall not constitute a waiver of any Event of Default or of any of Holder's
rights and remedies at law or in equity.

     

    9.            Limitations.
This Note is hereby expressly limited so that in no contingency or event
whatsoever, whether by reason of acceleration of maturity of the indebtedness
evidenced hereby or otherwise, shall the amount paid or agreed to be paid to
Holder for the use, forbearance or detention of the indebtedness evidenced
hereby, as interest or otherwise, exceed the maximum amount permissible under
applicable law. As used herein, the term "applicable law" shall mean the laws of
Michigan in effect as of the date hereof; provided, however, that in the event
there is a change in the law which results in a higher permissible rate of
interest than the highest permissible rate under applicable law in effect as of
the date hereof, then this Note shall be governed by such new law as of its
effective date. If, from any circumstance whatsoever, fulfillment of any
provision hereof at the time performance of such provision shall be due shall
involve transcending the limit of validity prescribed by law, then the
obligation to be fulfilled shall automatically be reduced to the limit of such
validity, and if from any circumstances Holder should ever receive as interest
an amount which would exceed the highest lawful rate, such amount which would be
excessive interest shall be applied to the reduction of the principal balance
evidenced hereby and not to the payment of interest, and, if the principal
amount of the Note has been paid in full, shall be refunded to the Company.
Whenever possible, each provision of this Note shall be interpreted in such
manner as to be effective and valid under applicable law, but if any provision
of this Note shall be prohibited by or invalid under applicable law, such
provision shall be ineffective to the extent of such prohibition or invalidity,
without invalidating the remaining provisions of this Note.

     

    10.            Expenses.
In the event that Holder or any subsequent holder of this Note shall
exercise or endeavor to exercise any of its remedies hereunder, the Company
shall pay on demand all reasonable costs and expenses incurred in connection
therewith including, without limitation, reasonable attorneys' fees, and Holder
may seek judgment for all such amounts in addition to all other sums due
hereunder.

    

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    IN
WITNESS WHEREOF, the parties have executed this Convertible Promissory Note as
of the date first written above.

     

     

    
       

       

      
        
          
            
              	 	THE COMPANY:	 
	 	 SELLMYBUSINESSNOW.COM, INC.,	 
	 	 a
      Michigan corporation	 
	
                      Date

                    	
                      By:
      

                    	/s/ 	 
	 	 	
                      John
      Maddox

                    	 
	 	 	Its:
      President	 
	 	 	 	 

            

          

        

      

    

     

     

     

    REVIEWED
AND AGREED TO:

     

    THE
HOLDER:

     

     

    By:                                
            
                                                                               

     

    Print
Name:                                                 

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

       

       

      ANNEX
A

    

     

    NOTICE OF
CONVERSION

     

    The
undersigned hereby elects to convert the dollar amount of the Convertible
Promissory Note indicated below into shares of common stock (the "Share"), of
SELLMYBUSINESSNOW.com,
Inc., a Michigan corporation (the "Company"), according to the conditions hereof
and under Section 2, as of the Date to Effect Conversion specified below. If
Shares are to be issued in the name of a person other than undersigned, the
undersigned will pay all transfer taxes payable with respect thereto and is
delivering herewith such certificates and opinions as reasonably requested by
the Company in accordance therewith. No fee will be charged to the Holder for
any conversion, except for such transfer taxes, if any.

     

    Additionally,
the undersigned holder hereby tenders to the Company the original Note
herewith.

     

    Conversion
calculations:

    Date to
Effect Conversion:                                                                                                              

     

    Principal
amount of Note to be Converted: $                                         
[To be filled in with full amount of
unpaid principal balance of the Note at the time of conversion

     

    Accrued
Interest to be Paid upon Conversion:                                                                                                                                             

     

    Number of
Conversion Shares:              

    THE
HOLDER:

     

    By:                                   
                

       
                                         

    Print
Name:                                       

       
                                         

    

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
B

     

     

    CONVERSION
NOTICE

     

    NOTICE OF
CONVERSION

     

    
      The
undersigned hereby elects to convert the dollar amount of the Convertible
Promissory Note indicated below into shares of common stock (the "Share"), of
SELLMYBUSINESSNOW.com,
Inc., a Michigan corporation (the "Company"), according to the conditions hereof
and under Section 3, as of the Date to Effect Conversion specified below. If
Shares are to be issued in the name of a person other than undersigned, the
undersigned will pay all transfer taxes payable with respect thereto and is
delivering herewith such certificates and opinions as reasonably requested by
the Company in accordance therewith. No fee will be charged to the Holder for
any conversion, except for such transfer taxes, if any.

       

      Additionally,
the undersigned holder hereby tenders to the Company the original Note
herewith.

       

    

    Principal amount of Note to be Converted: $               
To be filled with full amount of unpaid balance of the Note at the time of
conversion.

     

    Accrued Interest to be Paid upon Concversion:                              

     

    Number of Conversion Shares:                      

     

     

    
      
        
                                                                                                               

           

           

          THE
HOLDER:

           

          By:                                                    

          Print
Name:

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