Document:

Exhibit
      10.2

     
      

    FORM
      OF MANAGEMENT AGREEMENT

    

    The
      following is the form of the Management Agreement with Grant Neerings, Chief
      Technology Officer, Christine M. Carriker, Chief Administrative Officer &
Senior Vice President and Richard A. von Gnechten, Chief Financial
      Officer:

    

    AMENDED
      AND RESTATED SERVICES AGREEMENT

    

    This
      Services Agreement (this “Agreement”) dated as of the 11th
      day of
      January, 2007 (the “Effective Date”), as amended and restated from an earlier
      agreement dated the [ORIGINAL DATE OF AGREEMENT] (the “Original Date”), by and
      between HouseRaising, Inc., a North Carolina corporation with offices in
      Charlotte, North Carolina (“HRI,” “HouseRaising” or “Company”), and [OFFICER
      NAME INSERTED], a resident of North Carolina (the “Executive”), relating to
      HouseRaising, Inc. 

    

    RECITALS:
      

    

    WHEREAS,
      the parties hereto desire to enter into this Agreement to set forth the basis
      on
      which Executive will perform management services for the Company, all as set
      forth more fully in this Agreement.

    

    WHEREAS,
      the Company is engaged in and seeks to expand its business in the house building
      and related industry segments, and Executive has substantial experience in
      managing and operating businesses as a senior executive that would be very
      beneficial to the Company’s operations and future prospects; 

    

    WHEREAS,
      the Company believes its progress and its prospects for future development
      and
      growth would be significantly enhanced if Executive was engaged for the services
      of Executive to serve as the Company’s [TITLE INSERTED]; 

    

    WHEREAS,
      the Board of Directors of the Company (the “Board”) has authorized this
      Agreement with Executive and has approved its terms and conditions, all of
      which
      the Board has found to be reasonable, proper, and in the best interest of the
      Company; 

    

    NOW,
      THEREFORE, in consideration of the premises and covenants set forth herein
      and
      intending to be legally bound hereby, the parties to this Agreement hereby
      agree
      as follows:

    

    ARTICLE
      I 

    

    MANAGEMENT
      DUTIES AND COMPENSATION 

    

    1.01
       (a)
      Initial Terms of Management Duties. The
      Company hereby engages Executive and Executive hereby accept such engagement,
      on
      the terms and conditions set forth in this Agreement. The Company is hereby
      obtaining the services of Executive and other assistance as may be necessary.
      

    

    (b)
      Initial Terms of Agreement and Duties. The
      Company and Executive hereby agree that for a thirty-six (36) month period
      beginning on the Effective Date, the Company shall engage Executive for the
      services of Executive as [TITLE INSERTED] and the Executive shall perform
      services for the Company at the Company’s headquarters location. The last day of
      such thirty-six (36) month period shall be the "Termination Date". 

    

    (b)
       
      Renewal
      of Term. Unless
      the Company shall have given the Executive written notice at least 180 days
      prior to the Termination Date, this Agreement shall renew and continue in effect
      for additional one-year periods (and all provisions of this Agreement shall
      continue in full force and effect), and each successive anniversary from such
      original Termination Date shall thereafter be designated as the “Termination
      Date” for all purposes under this Agreement, provided, however, that the Company
      may, at its election at any time after the expiration of the initial term of
      this Agreement, give Executive notice of termination, in which event Executive
      shall continue to receive, as severance pay, [HIS/HER] base salary, if any,
      and
      benefits set forth in Paragraphs (d) and (f) below for 12 full months following
      such notice of termination. During such 12-month severance period, the Board
      may
      modify Executive’s duties as described in Paragraph (c) below without triggering
      the provisions of Section 2.03 below. The Company agrees that it will not
      unreasonably withhold any annual renewals of this Agreement. 

    

    
      
        
        

      

      
         

        
          

        

      

      
        
        

      

    

     

    (c)
       
      Duties.
      Executive
      is engaged for [TITLE INSERTED] services to be performed by Executive and shall
      carry out the financial and strategic plans and policies as established by
      the
      Board of Directors and Chairman/CEO of the Company and shall report to the
      Chairman and CEO. Duties and responsibilities under this Agreement shall include
      but not be limited to the following: [SPECIFIC DUTIES OF OFFICER LISTED,
      ILLUSTRATION PROVIDED FOR CHIEF ADMINISTRATIVE OFFICER]

    

    
      	
               
                

            	
              (i)
                

            	
              Supporting
                the operations and administration of the Chairman and CEO by advising
                and
                informing Chairman/CEO and Board of Directors with regard to the
                administrative (including Human Resources and Accounting, as necessary)
                operations of the Company and interfacing between the Chairman/CEO,
                Board
                and the staff of the Company; 

            

    

    

    
      	
               
                

            	
              (ii)
                

            	
              Supporting
                the design, marketing, promotion, delivery, and quality of company
                programs, products and services; 

            

    

    

    
      	
               
                

            	
              (iii)
                

            	
              Recommending
                a yearly budget for areas of responsibility for CFO, Chairman/CEO
                and
                Board approval and prudently managing the Company’s resources within those
                budgetary guidelines according to current laws and regulations;
                

            

    

    

    
      	
               
                

            	
              (iv)
                

            	
              Effectively
                managing the human resources of the organization according to authorized
                personnel policies and procedures that fully conform to current laws
                and
                regulations; and 

            

    

    

    
      	
               
                

            	
              (v)
                

            	
              Assuring
                that the Company and its mission programs, products, and services
                are
                consistently presented in strong, positive image to relevant stakeholders.
                

            

    

    

    As
      [TITLE
      INSERTED] of the Company, Executive shall be entitled to exercise all rights
      and
      power and shall have all the privileges and authorities commensurate with
      [HIS/HER] offices, including without limitation: 

    

    
      	
               
                

            	
              (i)
                

            	
              The
                full authority for the administrative and accounting operations,
                including
                proper reporting to the Board of Directors and appropriate state
                and
                federal agencies; 

            

    

    

    
      	
               
                

            	
              (ii)
                

            	
              General
                decision-making authority with respect to the day-to-day administrative
                and human resource operations of the business of the Company;
                

            

    

    

    
      	
               
                

            	
              (iii)
                

            	
              The
                engagement, retention, and termination of employees and independent
                contractors of the Company subject only to the supervision of the
                Chairman
                and Chief Executive Officer, the setting/guidance of the compensation
                and
                other material terms of engagement of employees and independent
                contractors consistent with company and Board policies and the
                establishment of company work rules; and

            

    

    

    
      	
               
                

            	
              (iv) 
                

            	
              The
                initiation, development, and implementation of new business activities,
                subject to the supervision of the Chairman/CEO. Executive shall render
                her
                services thereunder in the headquarters city subject to such reasonable
                travel as may be required to perform her duties hereunder.
                

            

    

    

    (d)
        
      Compensation
      and Expenses. The
      Company will compensate Executive at an annual compensation of [ANNUAL
      COMPENSATION INSERTED], to be paid [CASH PORTION INSERTED] in cash compensation
      and [STOCK PORTION INSERTED IF APPLICABLE] in S-8 Stock of the Company for
      the
      initial 12 month period of this agreement beginning February 1, 2007. Conversion
      to all cash payments will take place at the same time as other conversions
      for
      Officers of the Company.

    

    Commencing
      on the first anniversary of this Amended and Restated Services Agreement with
      Executive (February 1, 2008), and for each renewal term thereafter, Executive
      shall (based on adequate performance) receive annual increases as set forth
      by
      the Chairman and Chief Executive Officer and approved by the Compensation
      Committee of the Board of Directors.

    

    Nothing
      herein shall be deemed to restrict the right of the Board to increase
      Executive’s annual or monthly compensation, bonuses, and other compensation or
      grant stock options at any time in its discretion. 

    

    (e)
       Bonuses.
      Executive
      shall be entitled to such bonuses for performance as are described in Exhibit
      A
      attached hereto. 

    

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    (f)
       Other
      Compensation. The
      Company shall also provide to Executive during the term of [HIS/HER] Agreement
      hereunder: 

    

    
      	
               
                

            	
              (i)
                

            	
              All
                so-called “fringe benefits” including, but not limited to, participation
                in pension plans, profit-sharing plans, hospitalization insurance,
                medical
                insurance, dental insurance, disability insurance, life insurance,
                and the
                like that are granted to or provided for eligible employees or contractors
                of the Company, or that may be granted to or provided for during
                the term
                of the Executive’s engagement under this Agreement; and upon termination
                of Executive’s services with the Company, the Executive may, at [HIS/HER]
                option and at [HIS/HER] expense, continue the Executive’s
                hospitalization/medical/dental/disability and life insurance policy
                without interruption until [HIS/HER] death, if permitted by the terms
                of
                such group policies.

            

    

    

    
      	
               
                

            	
              (ii)
                

            	
              Executive
                will be compensated for the equivalent of four weeks’ paid time off per
                year. 

            

    

    

    (g)
       
      Initial
      Employee Stock Options. In
      consideration for [HIS/HER] services hereunder, the Company hereby grants to
      Executive an option to acquire shares of the Company’s Common Stock as described
      in Exhibit B. In addition to the stock options described in Exhibit B, Executive
      will be granted an option for [ONE-TIME GRANT AMOUNT INSERTED] shares at a
      price
      of fifty-cents ($0.50) per share, exercisable at any time during the ensuing
      ten
      years from that date, which will replace the same number of options that had
      previously been earned under the original agreement. These options are in
      addition to all other options granted and mentioned in Exhibit B.

    

    (h)
       
      Expense
      Reimbursement. Executive
      shall be paid [QUARTERLY ALLOWANCE AS APPLICABLE] each quarter for all other
      expenses incurred by Executive on the Company’s behalf. This amount will be
      subject to increase upon each anniversary date. Such reimbursement will be
      in
      the form of S-8 shares until such time as the company pays reimbursements for
      the Chairman/CEO in cash. It is understood that the Company will pay directly
      reasonable travel (air-fare only) expenses between the Company headquarters
      and
      other out-of-state office locations provided that reasonable efforts are made
      to
      manage the costs associated with such travel. 

    

    ARTICLE
      II 

    

    RIGHTS
      ON TERMINATION OF AGREEMENT 

    

    2.01
       
      Right
      to Terminate Agreement. At
      any
      time Executive may, at their option, terminate [HIS/HER] Agreement upon not
      less
      than 30 days’ written notice to the Chairman and CEO or Board of Directors of
      the Company. In the event of the termination of this Agreement by Executive,
      Executive shall be entitled to: 

    

    
      	 	
              (i)
                

            	
              The
                portion of monthly compensation, accrued bonus and expenses earned
                by
                Executive prior to the date of termination, computed pro rata up
                to and
                including the date of termination and

            

    

    

    
      	 	
              (ii) 
                

            	
              Maintain
                ownership of any unexercised stock options that are vested as of
                the date
                of termination until such date that they would otherwise expire.
                Other
                than the foregoing, Executive shall be entitled to no further compensation
                of any kind after the date of termination.

            

    

    

    2.02
       
      Disability.
      If,
      because of mental or physical disability, Executive shall be incapable for
      a
      period of six consecutive months (the “Disability Period”) of performing
      [HIS/HER] obligations and agreements hereunder (hereinafter referred to as
      a
“Disability”) during which period the provision of this Agreement will continue
      to apply in full force and effect, then, at the election of the Company
      expressed to Executive in writing, this Agreement shall terminate at the end
      of
      such Disability Period, except that Executive shall receive 75% of monthly
      compensation then in effect for one year from the date of termination, together
      with the bonuses described on Exhibit A hereto. The Company may at its option
      alternatively purchase an insurance policy that will provide the same disability
      benefit to Executive. Additionally, any stock options previously granted but
      not
      vested shall become vested upon termination for Disability by the Company.
      The
      determination of whether Executive has suffered a Disability shall be made
      by
      three licensed medical doctors: one chosen by the Company, one chosen by
      Executive, and one chosen by the two doctors so chosen. 

    

    2.03
       
      Rights
      Upon Termination of Agreement Without Cause Prior to the Termination:

     

    The
      Company may terminate Executive’s services without Cause (as defined below) by
      delivering written notice of such termination to Executive. In addition, any:
      

    

    
      	 	
              (i) 
                

            	
              Material
                change of Executive’s responsibilities or authority by the Chairman/CEO or
                Board without Executive’s concurrence which is not cured within 30 days
                after notice by Executive, 

            

    

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    
      	
               (ii)           
                

            	
              Material
                breach by the Company of this Agreement which continues for 30 days
                after
                notice by Executive, or 

            

    

    

    
      	
              (iii)          
                

            	
              A
                change in control of the Company that is required to be reported
                by the
                Company on Form 8-K, 

            

    

    

    shall
      be
      deemed termination by the Company without Cause. In the event of termination
      pursuant to clauses (i), (ii), or (iii) of the preceding sentence, Executive
      shall be entitled to give notice of termination, which notice shall have the
      same effect as a notice delivered by the Company, or 

    

    If,
      prior
      to the Termination Date, the Company terminates Executive’s Agreement for any
      reason other than Cause or Disability, then the Company shall: 

    

    
      	
               
                

            	
              (i)
                

            	
              Continue
                to pay Executive (in the same manner as prior to such termination)
                after
                the date of such termination the compensation provided under Section
                1.01
                above for a period of twelve (12) months as if Executive had been
                engaged
                hereunder during such period; 

            

    

    

    
      	
               
                

            	
              (ii)
                

            	
              Continue
                to pay all bonuses earned for twelve (12) month period as if Executive
                had
                been engaged hereunder during such period, provided the mutually
                agreed
                upon targets are met in such period;

            

    

    

    
      	
               
                

            	
              (iii)
                

            	
              Provide
                Executive reimbursement for continued coverage for a twelve (12)
                month
                period under any employee benefit plan (as such term is defined in
                Section
                3(3) of the Employee Retirement Income Security Act of 1974, as amended)
                then maintained by Executive or any successor plan thereof.
                Notwithstanding 2.03(iii) above, the Company hereby agrees to continue
                to
                reimburse Executive for hospitalization/medical/dental/disability
                and life
                insurance policy in effect at the time of termination through the
                full
                period of this Agreement, to continue to reimburse Executive for
                any
                premium to maintain the policy for Executive through the full period
                of
                this Agreement; and 

            

    

    

    
      	
               
                

            	
              (iv)
                

            	
              All
                stock options will immediately vest, and the stock granted to Executive
                upon [HIS/HER] exercise of such options shall be unrestricted except
                for
                any governmental restrictions and registered if the Company is a
                public
                company at the time of termination or subsequently becomes public.
                

            

    

    

    2.04
       
      Right
      Upon Termination of Agreement for Cause 

     

    The
      Company shall have the right at any time, by giving written notice to Executive
      to terminate Executive’s Agreement for Cause. Cause shall be deemed to have
      occurred if Executive is convicted of a felony or a crime involving fraud,
      gross
      negligence, or significant mismanagement of the business. Upon such termination
      for Cause, Executive shall be paid [HIS/HER] current monthly compensation and
      any bonuses earned up to that point, and Executive may exercise any unexercised
      options or warrants that are vested up to their normal termination date.
      Executive shall forfeit all unexercised options not then vested. 

    

    2.05
       
      Beneficiaries
      of Payments  
      

     

    If
      Executive shall die before any event of termination, the Company will continue
      to make payments for a 12-month period (as stated in section 2.03) to such
      beneficiary or beneficiaries as Executive may designate from time to time by
      notice in writing filed with the Company, or if Executive shall fail or fail
      effectively to designate a beneficiary, or if no beneficiary shall survive
      the
      date when the last payment is to be made, any remaining payments shall be made
      to the Executive’s estate as agreed upon by the trustee of Executive’s
      estate.

     
      

    ARTICLE
      III 

    

    PROTECTIONS/CONFIDENTIALITY
      

    

    3.01
       
      Covenants
      Regarding Protections: 

     

              
      Executive
      hereby agrees and covenants to the following: 

    

    (a)
       
      Solicitation
      of Customers and Registered Primary Vendors: 

     

    During
      the term of this Agreement and for a period of one (1) year following the
      termination of this Agreement by either party (other than a termination of
      this
      Agreement by the Company’s failure to renew it pursuant to Section 1.01(b)
      above), Executive hereby agrees not to solicit or contact in any manner that
      could be reasonably construed as a solicitation, any past or current customer
      or
      registered primary vendor of the Company for purposes of encouraging such
      customer to refrain from purchasing products or services from the Company or
      for
      purposes of encouraging such vendor to refrain from providing services or
      selling products to the Company. Notwithstanding the above, if Executive should
      leave the Company and join a competitive company, it is recognized by the
      parties that the industry utilizes a variety of marketing and sales techniques
      such as direct mail, telemarketing, advertising, etc., and the customer might
      be
      contacted by the Company that Executive joins as a matter of course, and in
      this
      event this practice would not be considered a violation of this Agreement.
      

    

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    (b)
       
      Solicitation
      of Executives:  
      

     

    During
      the term of this Agreement and for a period of one (1) year following the
      termination of this Agreement by either party (other than a termination of
      this
      Agreement by the Company’s failure to renew it pursuant to Section 1.01(b)
      above), Executive hereby agrees not to employ, either directly or indirectly
      through any entity in which Executive are engaged, and agrees not to solicit,
      or
      contact in any manner that could reasonably be construed as a solicitation,
      any
      officer or director of the Company for purposes of encouraging such person
      to
      leave or terminate [HIS/HER] Agreement with the Company. 

    

    3.02
       
      Confidentiality;
      Competitive or Personal Disparagement: 

     

    Executive
      and the Company hereby agree that neither will, during the term of Executive’s
      Agreement or at any time following the termination hereof for any reason, do
      or
      cause to have done any of the following: 

    

    
      	
               
                

            	
              (i)
                

            	
              Without
                the prior written consent of the other party, use for its own purposes
                or
                disclosure to any person or other entity any confidential and/or
                proprietary information of the Company or Executive; and
                

            

    

    

    
      	
               
                

            	
              (ii)
                

            	
              Each
                party agrees that it will not disparage the other party.
                

            

    

    

    3.03
       
      Enforcement:
      

     

    Executive
      and the Company recognize that the provisions of this Agreement are vitally
      important to the continuing welfare of the Company and Executive and that money
      damages constitute an inadequate remedy for any violation thereof. Accordingly,
      in the event of any such violation by Executive or the Company, the Company
      or
      Executive, in addition to any other remedies it may have, shall have the right
      to institute and maintain a proceeding to compel specific performance thereof
      or
      to issue an injunction restraining any action by Executive or the Company in
      violation of the Agreement. 

    

    ARTICLE
      IV 

    

    4.01
       
      Indemnifications:
      

     

    The
      parties agree that Executive shall be indemnified by the Company against any
      liability asserted against Executive (and expenses, including without
      limitation, reasonable attorney’s fees, court costs, and other legal expenses
      incurred in connection therewith) by reason of [HIS/HER] position with the
      Company or any subsidiary to the full extent a North Carolina corporation may
      indemnify an officer or director and company under the North Carolina General
      Corporate Law. 

    

    4.02
       
      No
      Obligation to Mitigate Damages: 

     

    In
      the
      event of a termination of Agreement upon a change in control, Executive shall
      not be required to mitigate damages by seeking another Agreement. 

    

    4.03
       
      Arbitration
      and Remedies: 

     

    (a)
       
      All
      disputes, differences, or questions between the parties concerning the
      construction, interpretation, and effect of the Agreement, or the rights,
      obligations, and liabilities of the parties, and which have as their sole remedy
      monetary damages, will be settled by arbitration in the City of Charlotte,
      North
      Carolina, or such other place as the parties may mutually agree. In the case
      of
      a dispute, difference, or question, one party shall appoint its arbitrator
      and
      shall notify the other party in writing (the “Arbitration Notice”) of the
      appointment and the matter to be determined. If the party receiving the
      arbitration notice fails to appoint an arbitrator and notify the first party
      of
      such appointment for 15 days after receipt of such notice, the decision of
      the
      arbitrator appointed by the first of the parties shall be final and binding
      on
      both of the parties hereto. If two arbitrators are appointed, they shall meet
      within 30 days after appointment of the second arbitrator. If they do not agree
      as to their decision, they shall choose a third arbitrator, failing which,
      third
      arbitrator shall be selected in accordance with the rules of the American
      Arbitration Association. The arbitration shall be held as promptly as possible
      at such time and place in the designated city as the arbitrators may determine.
      The decision of the arbitrators so appointed, or a majority of them, will be
      final and binding upon the parties hereto. Judgment upon the award may be
      entered in any court having jurisdiction, or application may be made to such
      court for judicial acceptance of the award and an order to enforce, as the
      case
      may be. If the arbitrator appointed refuses to act, is incapable of acting,
      or
      dies, a substitute for him shall be appointed in the manner provided above.
      

    

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    (b)
       
      Each
      of
      the parties to the Agreement will be entitled to enforce its rights under the
      Agreement specifically, to recover damages by reason of any breach of any
      provision of this Agreement and to exercise all other rights existing in its
      favor. The parties hereto agree and acknowledge that money damages may not
      be an
      adequate remedy for any breach of the provisions of the Agreement and that
      any
      party may, in its sole discretion, apply for specific performance and/or
      injunctive relief in either a federal or state court to enforce or prevent
      any
      violations of the provisions of this Agreement. 

    

    4.04
       
      Legal
      Cost and Indemnification: 

     

    The
      Company shall pay Executive all legal fees and expenses incurred by [HIS/HER]
      as
      a result of [HIS/HER] termination without Cause or Disability, including but
      not
      limited to, all such fees and expenses, if any, incurred in contesting or
      disputing any such termination or in seeking to obtain or enforce any right
      or
      benefit provided in this Agreement through legal process or arbitration, if
      Executive shall be wholly successful on the merits, such amounts not to exceed
      any court-directed maximum. 

    

    4.05
       
      Notices:
      

     

    (a)
       
      Any
      notice to be given concerning this Agreement shall be given in writing and
      either (i) sent by certified or registered mail, return receipt requested,
      postage prepaid; or (ii) hand-delivered to the recipient personally. In the
      case
      of notice sent by mail, the date of the giving of the notice shall be deemed
      to
      be (i) the date of the postmark of the executed return receipt or (ii) the
      date
      of actual receipt if not postmarked by the United States Postal Service. In
      the
      case of notice being hand-delivered, a written dated receipt shall be given
      therefore. Hand-delivery of any notice to the Company shall be delivered to
      the
      Company’s chief financial officer personally. 

    

    (b)
       
      Notice
      shall be sent as follows: 

    

      
        	
                If
                  to Executive:   

              	
                [NAME
                  OF EXECUTIVE INSERTED]

              
	 	
                [ADDRESS
                  OF EXECUTIVE INSERTED]

              
	 	 
	
                If
                  to the Company: 

              	
                HouseRaising,
                  Inc.

              
	 	
                4801
                  E. Independence Blvd.

              
	
                 

              	
                Charlotte,
                  North Carolina 28212

              

      

    

    

    (c)
       
      By
      giving
      notice to all other parties, any party may, from time to time, designate a
      different address to which notice by mail to such party shall be sent.

    

    4.06
       
      Successors
      and Assigns; Survival in Case of Merger: 

     

    (a)
       
      This
      Agreement is intended to bind and inure to the benefit of, and be enforceable
      by, Executive and the Company and their respective successors and assigns.
      

    

    (b)
       
      Without
      limiting the effect of the foregoing, this Agreement and all of its terms shall
      survive, and be enforceable by Executive, notwithstanding any merger,
      consolidation, combination, or reorganization of the Company with or into any
      other entity or person (“Surviving Entity”), including but not limited to any
      other corporation, partnership, or other similar organization, whether or not
      the Company is the Surviving Entity of such merger, consolidation, combination,
      or reorganization. The Surviving Entity shall be bound by this Agreement to
      the
      same extent as if such Surviving Entity had entered into the Agreement with
      Executive on the Effective Date. 

    

    (c)
       
      As
      a
      condition of any merger, consolidation, combination, or reorganization of the
      Company as discussed in Section 4.06(b) above, the Company agrees to include,
      as
      a condition of consummation of such merger, consolidation, combination, or
      reorganization, an undertaking by the Surviving Entity, pursuant to which the
      Surviving Entity shall agree in writing to be bound by this Agreement.

     

    4.07
       
      Amendment;
      Waiver: 

     

    No
      amendment or other modification of this Agreement nor any waiver of any term
      of
      this Agreement shall be valid unless it is in writing and signed by the party
      against whom enforcement of the amendment, modification, or waiver is sought.
      No
      waiver by any party of the breach of any term contained in this Agreement,
      whether by conduct or otherwise, in any one or more instances, shall be deemed
      to be or construed as a further or continuing waiver of any such breach of
      any
      other term of this Agreement. 

    

    4.08
       
      Further
      Assurances: 

     

    Each
      party hereto agrees to perform any further acts and to execute and deliver
      any
      further documents mutually agreed to in writing that may be reasonably necessary
      to carry out the provisions of this Agreement. 

    

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    4.09
       
      Severability:
      

     

    In
      the
      event that any of the provisions, or portions thereof, of this Agreement are
      held to be unenforceable or invalid by any court of competent jurisdiction,
      the
      validity and enforceability of the remaining provisions, or portions thereof,
      shall not be affected thereby. 

    

    4.10
       
      Construction:
      

     

    Whenever
      used herein, the singular number shall include the plural, and the plural number
      shall include the singular. 

    

    4.11
       
      Gender:
      

     

    Any
      references hereto to the masculine gender, or to the masculine form of any
      noun,
      adjective, or possessive, shall be construed to include the feminine or neuter
      gender and form, and vice versa. 

    

    4.12
       
      Headings
      

     

    The
      headings contained in this Agreement are for purposes of reference only and
      shall not limit or otherwise affect the meaning of any of the provisions
      contained hereof. 

    

    4.13
       
      Multiple
      Counterparts: 

     

    This
      agreement may be executed in multiple counterparts, each of which shall be
      deemed to be an original but all of which together shall constitute one and
      the
      same instrument. 

    

    4.14
       
      Governing
      Law: 

     

    THIS
      AGREEMENT HAS BEEN EXECUTED IN AND SHALL BE COVERED BY THE LAWS OF THE STATE
      OF
      NORTH CAROLINA AND THE OBLIGATIONS OF THE PARTIES HERETO SHALL BE PERFORMABLE
      IN
      CHARLOTTE, NORTH CAROLINA. 

    

    4.15
       
      Inurement:
      

     

    Subject
      to the restrictions against transfer or assignment as herein contained, the
      provisions of the Agreement shall inure to the benefit of, and shall be binding
      on, the assigns, successors in interest, personal representatives, estates,
      heirs, and legatees of each of the parties thereto. 

    

    4.16
       
      Waiver:
      

     

    No
      waiver
      of any provision or condition of this Agreement shall be valid unless executed
      in writing and signed by the party to be bound thereby and then only to the
      extent specified in such waiver. No waiver of any provision or condition of
      this
      Agreement shall be construed as a waiver of any other provision or condition
      of
      this Agreement and no present waivers of any provision or condition of this
      Agreement shall be construed as a future waiver of such provision or condition.
      

    

    4.17
       
      Entire
      Agreement:  
      

     

    This
      Agreement contains the entire understanding between the parties hereto
      concerning the subject matter contained herein. 

    

    IN
      WITNESS WHEREOF, the parties to the Agreement have set their respective hands
      hereto as of the date first written above. 

     
      

    
      	
               
                

            	
               
                

            	
               
                

            
	
               
                

            	
              EXECUTIVE
                

            
	
               
                

               
                

            	
               
                

               
                

            	
               
                

               
                

            
	 	
              By:  
                

            	 
	
               
                

            	
              
                

              

              Name:
                [NAME OF EXECUTIVE & SIGNATURE]

            
	
               
                

            	
               
                

            

    

    
      	
               
                

            	
               
                

            	
               
                

            
	
               
                

            	
              COMPANY
                

              HouseRaising,
                Inc. 

            
	
               
                

               
                

            	
               
                

               
                

            	
               
                

               
                

            
	 	
              By:  
                

            	 
	
               
                

            	
              
                
                  

                

              

              Name:
                Gregory J. Wessling

            
	
               
                

            	
              Title : 
                Chairman and CEO

            

    

    

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    EXHIBIT
      A

    

    BONUSES
      

    

    
      	
              ·  
                

            	
              Period
                of Contract and Renewals: 

            

    

     

    Executive
      will be eligible for a bonus of up to 75% of the annual compensation under
      this
      services agreement; payable quarterly based upon the completion of Company
      objectives and performance criteria to be mutually agreed upon by Executive
      and
      the Chairman/CEO and Board of Directors at the beginning of each year.

    

    
      	
              ·  
                

            	
              Note:
                 
                

            

    

     

    Regardless
      of any other objectives established, if during the first year of this Amended
      and Restated Services Agreement the Company reaches a market capitalization
      of
      $50 Million or more, then the first year’s objectives shall be deemed to have
      been met. If in the second year of operation a market capitalization of $75
      Million or more is achieved, then the second year’s objectives shall be deemed
      to have been met, and if, in the third year of operation, a market
      capitalization of $110 Million or more is achieved, then the third year’s
      objectives shall be deemed to have been met. 

     
      

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    

    EXHIBIT
      B 

    

    STOCK
      OPTIONS 

    

    Executive
      are granted, upon execution of this Agreement, an option for [NUMBER OF SHARES
      INSERTED] shares at a price of fifty cents ($0.50) per share exercisable at
      any
      time during the ensuing ten years. The stock option shall vest over a three-year
      period, 33.4% of the balance vesting upon the first anniversary date of this
      agreement, 33.3% of the balance vesting at the end of the second anniversary
      date of this agreement, and the remainder vesting at the end of the third
      anniversary date of this agreement. Notwithstanding the above, all of the
      remaining option will vest upon the Company reaching a market capitalization
      of
      $75 Million or more. 

    

    Additionally,
      Executive has the right at any time to exercise all of the option or any portion
      of the total option, in which event Executive will take ownership of such stock
      but the Company will issue stock certificates to Executive according to the
      vesting schedule above and affix an appropriate restrictive legend referencing
      this Agreement. 

    

    In
      the
      event Executive elects to exercise [HIS/HER] rights in the preceding paragraph
      and if Executive requests ratable issuance, Company agrees to issue shares
      ratably at 1/36 th
      per
      month
      starting at the beginning of the first year. At any time the Company reaches
      a
      valuation of $75 Million or more or there is a change in control requiring
      the
      filing of a Current Report on Form 8-K, or the sale of the Company is
      consummated, then the Company will issue all shares upon such events.

    

    There
      will be no buy-back rights in such shares and the grant of any option does
      not
      imply any right to continued Agreement except what is provided herein.

    

    The
      parties agree that the said option will be issued in the name of [EXECUTIVE
      NAME
      INSERTED], or, as desired by Executive or their successors, the [EXECUTIVE
      NAME]
      Family Limited Partnership as an immediate pass-through from [EXECUTIVE NAME],
      the Executive, to the [EXECUTIVE NAME] Family Limited Partnership. 

    

    
      
        
        

      

      
        9SECURITIES
      PURCHASE AGREEMENT

    

     

    THIS
      SECURITIES PURCHASE AGREEMENT
      (this
“Agreement”)
      is
      made as of February _____, 2007, by and among Sub-Urban
      Brands, Inc.,
      a
      Nevada corporation (the “Company”),
      and
      _________________________________________________ (including any subsequent
      holder of the Note, as defined in herein), the “Investor”).

     

    1. Promissory
      Note and Shares.
      The
      Investor hereby agrees to purchase from the Company an investment unit
      consisting of an unsecured convertible promissory note (the “Note”),
      in
      substantially the form attached hereto as Exhibit
      A,
      and
      _________ shares of the Company’s common stock (the “Shares”).
      The
      Note shall have a principal balance of $__________ and shall be dated as of
      the date hereof. The Note shall be due and payable
      _________________________________ and shall accrue interest at ten percent
      (10%)
      per annum. The purchase price of the investment unit shall be $_________ (the
      “Purchase Price”). The Company and the Investor agree that 100% of the Purchase
      Price shall be allocated to the Note and no portion of the Purchase Price is
      allocated to the Shares. As a result, the parties agree that the Shares are
      being acquired at a discount to market in consideration of the purchase of
      the
      Note and based on, among other things, illiquidity of the Shares.

     

    1.3. Closing.
      The
      closing (the “Closing”)
      of the
      purchase and sale of the Note and Shares shall take place at the offices of
      the
      Company on February ______, 2007 (the “Closing Date”). 

     

    1.4. Registration
      Rights.
      The
      Company agrees to file a registration statement with the Securities and Exchange
      Commission (the “SEC”) in order to register the Shares, together with any Bonus
      Shares (as such term is defined below) (collectively, the “Registrable Shares”),
      for resale and to cause such registration to be declared effective by the SEC
      within seven (7) months of the Closing. In the event that the registration
      statement is not declared effective by the SEC on or before the seven-month
      anniversary of the Closing Date,
      the
      Company shall, at the first day of each calendar month thereafter and continuing
      for so long as the Registrable Shares are not registered, issue to the Investor
      ______ shares of common stock (the “Bonus Shares”). Notwithstanding the
      foregoing, the Company will include the Shares on its next Registration
      Statement filed with the SEC. The Investor specifically acknowledges that the
      Company currently has an obligation to register up to 2,200,000 shares of its
      common stock (together with additional shares to be issued on a monthly basis
      if
      such registration is not effective within seven months of the issuance of such
      shares) prior to or concurrently with the registration of the Shares. Such
      shares were issued by the Company on February ______, 2007 in connection with
      the issuance of up to $500,000 of unsecured convertible promissory notes. The
      Investor specifically acknowledges and agrees that the SEC may request that
      the
      number of shares in any registration statements filed by the Company for selling
      shareholders be cut back or registration delayed pursuant to the SEC’s
      interpretation of Rule 415 or other rules and regulations promulgated under
      the
      Securities Act of 1933, as amended. The Investor agrees that any such cut backs
      or delays in registration shall not be a breach of the Company’s obligation to
      register the Registrable Shares and shall not result in payment of Bonus Shares
      hereby.

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    2. Representations
      and Warranties of the Company.
      In
      connection with the transactions provided for herein, the Company hereby
      represents, warrants, and covenants to the Investor as of the date hereof and
      as
      of the Closing (and any subsequent closing) that:

     

    2.1. Organization,
      Good Standing, and Qualification.
      The
      Company is a corporation duly organized, validly existing, and in good standing
      under the laws of the State of Nevada and has all requisite corporate power
      and
      authority to carry on its business as now conducted and as proposed to be
      conducted. The Company is duly qualified to transact business and is in good
      standing in each jurisdiction in which the failure so to qualify would have
      a
      material adverse effect on its business or properties.

     

    2.2. Authorization.
      All
      corporate action on the part of the Company, its officers, directors and
      stockholders necessary for (1) the authorization, execution and delivery of
      this
      Agreement, and (2) the authorization, execution, issuance and delivery of the
      Note and Shares has been taken or will be taken prior to the Closing.

     

    2.4. Valid
      Issuance.
      The
      offer, sale, and issuance of the Note and Shares as contemplated by this
      Agreement are exempt from the registration requirements of the Act and
      applicable state securities laws, and will be free of restrictions on transfer
      other than restrictions on transfer under this Agreement, the Note, or
      applicable state and federal securities laws. The Shares will be duly and
      validly issued, fully paid, and nonassessable, and will be free of restrictions
      on transfer other than restrictions on transfer under applicable state and
      federal securities laws. The Conversion Shares (as defined in the Note), when
      issued in accordance with the terms of the Note, will be duly and validly
      issued, fully paid, and nonassessable, and will be free of restrictions on
      transfer other than restrictions on transfer under applicable state and federal
      securities laws

     

    2.5. Enforceability.
      This
      Agreement and the Note and the transactions contemplated hereby and thereby
      constitute valid and legally binding obligations of the Company, enforceable
      in
      accordance with their respective terms, except (a) as limited by applicable
      bankruptcy, insolvency, reorganization, moratorium, and other laws of general
      application affecting enforcement of creditors’ rights generally, or (b) as
      limited by laws relating to the availability of specific performance, injunctive
      relief, or other equitable remedies.

     

    3. Representations
      and Warranties of the Investor.
      In
      connection with the transactions provided for herein, the Investor hereby
      represents and warrants to the Company that:

     

    3.1. Authorization.
      Unless
      Investor is an individual, Investor has taken all necessary corporate or other
      entity actions for the authorization, execution and delivery of, and the
      performance of all obligations of Investor under, this Agreement and the other
      documents delivered pursuant to this Agreement. This Agreement constitutes
      the
      Investor’s valid and legally binding obligation, enforceable in accordance with
      its terms, except (a) as limited by applicable bankruptcy, insolvency,
      reorganization, moratorium, and other laws of general application affecting
      enforcement of creditors’ rights generally, or (b) as limited by laws relating
      to the availability of specific performance, injunctive relief, or other
      equitable remedies. 

     

    3.2. Purchase
      Entirely for Own Account.
      Investor acknowledges that this Agreement is made with Investor in reliance
      upon
      Investor’s representation to the Company that the Investor’s Note and Shares
      will be acquired for investment for Investor’s own account, not as a nominee or
      agent, and not with a view to the resale or distribution of any part thereof,
      and that Investor has no present intention of selling, granting any
      participation in, or otherwise distributing the same. By executing this
      Agreement, Investor further represents that Investor does not have any contract,
      undertaking, agreement, or arrangement with any person to sell, transfer, or
      grant participations to such person or to any third person, with respect to
      the
      Note and Shares. 

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    3.3. Disclosure
      of Information.
      Investor acknowledges that it has received all the information it considers
      necessary or appropriate for deciding whether to acquire the Note and Shares.
      Investor further represents that it has had an opportunity to ask questions
      and
      receive answers from the Company regarding the business, affairs and current
      prospects of the Company and the terms and conditions of the offering of the
      Note and Shares.

     

    3.4. Investment
      Experience.
      Investor acknowledges that it is able to fend for itself, can bear the economic
      risk of the loss of its entire investment, and has such knowledge and experience
      in financial or business matters that it is capable of evaluating the merits
      and
      risks of the investment in the Note and Shares. If other than an individual,
      Investor also represents it has not been organized solely for the purpose of
      acquiring the Note and Shares.

     

    3.5. Accredited
      Investor.
      Investor is an “accredited investor” within the meaning of Rule 501(a) of
      Regulation D, promulgated under the Securities Act of 1933, as amended (the
      “Act”), as presently in effect and
      Investor has executed the Certificate of Accredited Investor Status, attached
      hereto as Exhibit
      B.

     

    3.6. Restricted
      Securities.
      Investor understands that the Note and Shares are characterized as “restricted
      securities” under the federal securities laws inasmuch as they are being
      acquired from the Company in a transaction not involving a public offering
      and
      that under such laws and applicable regulations such securities may be resold
      without registration under the Act only in certain limited circumstances. In
      this connection, Investor represents that it is familiar with SEC Rule 144,
      as
      presently in effect, and understands the resale limitations imposed thereby
      and
      by the Act.

     

    3.7. Further
      Limitations on Disposition.
      Without
      in any way limiting the representations set forth above, Investor further agrees
      not to make any disposition of all or any portion of the Note and Shares unless
      and until: 

     

    (a) the
      transferee has agreed in writing for the benefit of the Company to be bound
      by
      this Section
      3;
      or

     

    (b) there
      is
      then in effect a registration statement under the Act covering such proposed
      disposition and such disposition is made in accordance with such registration
      statement; or

     

    (c) (i)
      Investor shall have notified the Company of the proposed disposition and shall
      have furnished the Company with a detailed statement of the circumstances
      surrounding the proposed disposition, and (ii) if reasonably requested by the
      Company, Investor shall have furnished the Company with an opinion of counsel,
      reasonably satisfactory to the Company, that such disposition will not require
      registration of such shares under the Act.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    3.8. Tax
      Consequences.
      Investor acknowledges that the tax consequences to his or her of investing
      in
      the Note and Shares will depend on his or her particular circumstances, and
      neither the Company, shareholders, agents, officers, directors, employees,
      affiliates, or consultants of any of them will be responsible or liable for
      the
      tax consequences to him or her of an investment in the Company. Investor will
      look solely to, and rely upon, his or her own advisers with respect to the
      tax
      consequences of this investment. Investor acknowledges that there can be no
      assurance that the united States Internal Revenue Code or the Treasury
      Regulations thereunder will not be amended or interpreted in the future in
      such
      a manner so as to deprive the Company and the members of some or all of the
      tax
      benefits they might now receive, nor that some of the deductions claimed by
      the
      Company or the allocations of items of income, gain, loss, deduction, or credit
      among the members may not be challenged by the Internal Revenue
      Service.

     

    3.9 Legends.
      Investor agrees that the Note and Shares shall bear substantially the following
      legends, together with any additional legends required by state securities
      laws:

     

    “THIS
      NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED.
      THEY
      MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED, HYPOTHECATED, OR OTHERWISE
      TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER
      THE SECURITIES ACT OF 1933, AS AMENDED, OR AN OPINION OF COUNSEL SATISFACTORY
      TO
      THE BORROWER THAT REGISTRATION IS NOT REQUIRED UNDER SUCH ACT OR UNLESS SOLD
      PURSUANT TO RULE 144 UNDER SUCH ACT.”

     

    “THESE
      SHARES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED.
      THEY MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED, HYPOTHECATED, OR OTHERWISE
      TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER
      THE SECURITIES ACT OF 1933, AS AMENDED, OR AN OPINION OF COUNSEL SATISFACTORY
      TO
      THE COMPANY THAT REGISTRATION IS NOT REQUIRED UNDER SUCH ACT OR UNLESS SOLD
      PURSUANT TO RULE 144 UNDER SUCH ACT.”

     

    4. No
      Security.
      The
      Investor acknowledges that the Note is not secured by any assets of the Company
      and is subordinated in right of payment to the secured indebtedness of the
      Company. Notwithstanding the foregoing, Joseph Shortal has provided a personal
      guarantee for the Note in the form attached as Appendix
      A
      to the
      Note.

     

    5. Miscellaneous.

     

    5.1. Successors
      and Assigns.
      Except
      as otherwise provided herein, the terms and conditions of this Agreement shall
      inure to the benefit of and be binding upon the respective successors and
      assigns of the parties. Nothing in this Agreement, express or implied, is
      intended to confer upon any party other than the parties hereto or their
      respective successors and assigns any rights, remedies, obligations, or
      liabilities under or by reason of this Agreement, except as expressly provided
      in this Agreement.

     

    5.2. Governing
      Law.
      This
      Agreement shall be governed by and construed under the laws of the State of
      California as applied to agreements among California residents, made and to
      be
      performed entirely within the State of California.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    5.3. Counterparts.
      This
      Agreement may be executed in one or more counterparts, each of which shall
      be
      deemed an original, but all of which together shall constitute one and the
      same
      instrument.

     

    5.4. Titles
      and Subtitles.
      The
      titles and subtitles used in this Agreement are used for convenience only and
      are not to be considered in construing or interpreting this
      Agreement.

     

    5.5. Notices.
      Except
      as may be otherwise provided herein, all notices and other communications
      required or permitted hereunder shall be in writing and shall be conclusively
      deemed to have been duly given (a) when hand-delivered to the other party,
      (b)
      when received when sent by facsimile to the address and number set forth below,
      (c) three (3) business days after deposit in the U.S. mail with first class
      or
      certified mail receipt requested, postage prepaid, and addressed to the other
      party as set forth below, or (d) the next business day after deposit with
      a national overnight delivery service, postage prepaid, addressed to the
      parties as set forth below with next-business day delivery guaranteed;
provided,
      however,
      that
      the sending party receives a confirmation of delivery from the delivery
      service provider.

     

    If
      to the
      Company:

     

    Sub-Urban
      Brands, Inc.

    8723
      Bellanca Avenue, Building A

    Los
      Angeles, CA 90045

    (310)
      670-0132 phone

     

    If
      to the
      Investor:

     

    At
      the
      address shown on the signature pages hereto.

     

    5.6. Expenses;
      Reimbursement of Legal Fees.
      If any
      action at law or in equity is necessary to enforce or interpret the terms of
      this Agreement (including the exhibits hereto), the substantially prevailing
      party shall be entitled to reasonable attorneys’ fees, costs and necessary
      disbursements in addition to any other relief to which such party may be
      entitled. 

     

    5.7. Entire
      Agreement: Amendments and Waivers.
      This
      Agreement (including the exhibits hereto) and the other documents delivered
      pursuant hereto constitute the full and entire understanding and agreement
      between the parties with regard to the subjects hereof and thereof. Any term
      of
      this Agreement may be amended and the observance of any term of this Agreement
      may be waived (either generally or in a particular instance and either
      retroactively or prospectively) only with the written consent of the Company
      and
      a majority of the Investors.
      Any
      waiver or amendment effected in accordance with this Section 6.8 shall be
      binding upon all the Investors and the Company.

     

    5.8. Severability.
      If one
      or more provisions of this Agreement are held to be unenforceable under
      applicable law, such provision shall be excluded from this Agreement and the
      balance of the Agreement shall be interpreted as if such provision were so
      excluded and shall be enforceable in accordance with its terms.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

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

     

     

    
      	 	THE
              COMPANY:
	 	 	 	 
	 	SUB-URBAN BRANDS,
              INC.
	 	 
	 	 	 	 
	 	By:	_______________________________________________
	 	Name:	 	 
	 	Title:	 	 
	 	 	 	 
	 	THE LENDER:
              
	 	
            	 	 
	 	
            	 	 
	 	By:	_______________________________________________
	 	Name:	_______________________________________________
	 	Title:	_______________________________________________
	 	 	
            	 
	 	 	Address:	____________________________________
	 	 	_______________________________________________
	 	 	_______________________________________________
	 	 	_______________________________________________

    

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      A

     

    TO
      UNIT
      PURCHASE AGREEMENT

    

     

     

    CONVERTIBLE
      PROMISSORY NOTE

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    THIS
      CONVERTIBLE PROMISSORY NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT
      OF
      1933. NO SALE OR DISPOSITION MAY BE EFFECTED EXCEPT IN COMPLIANCE WITH RULE
      144
      UNDER SAID ACT OR AN EFFECTIVE REGISTRATION STATEMENT RELATED THERETO OR AN
      OPINION OF COUNSEL FOR THE HOLDER, SATISFACTORY TO THE COMPANY, THAT SUCH
      REGISTRATION IS NOT REQUIRED UNDER THE ACT OR RECEIPT OF A NO ACTION LETTER
      FROM
      THE SECURITIES AND EXCHANGE COMMISSION.

     

    THIS
      CONVERTIBLE PROMISSORY NOTE AND ANY SECURITIES INTO WHICH THIS CONVERTIBLE
      PROMISSORY NOTE IS CONVERTIBLE ARE SUBJECT TO RESTRICTIONS ON TRANSFER CONTAINED
      IN THAT CERTAIN NOTE PURCHASE AGREEMENT, DATED FEBRUARY 13, 2007, WHICH
      RESTRICTIONS ON TRANSFER ARE INCORPORATED HEREIN BY
      REFERENCE.

     

    CONVERTIBLE
      PROMISSORY NOTE

     

     

    
      	 	$________	 	
              February
                ____________, 2007

            
	 	10% per annum	 	
              Los
                Angeles,
                California

            

    

     

    FOR
      VALUE RECEIVED,
      Sub-Urban Brands, Inc., a Nevada corporation (“Company”), promises to pay to the
      order of ________________________________________, or its assigns (“Holder”),
      the principal sum of ___________________________ ($__________) with interest
      on
      the outstanding principal amount at the simple rate of ten percent (10%) per
      annum (calculated on the basis of a 360 day year). Interest shall commence
      with
      the date hereof and shall continue on the outstanding principal until paid
      in
      full or converted in accordance with paragraph 4. Upon the occurrence of an
      Event of Default, as defined below, the rate of interest accruing on the unpaid
      principal balance shall automatically and without further action by Investor
      be
      increased by eight (8) percentage points above the rate of interest otherwise
      applicable (the "Default Rate"), independent of whether Investor elects to
      accelerate the unpaid principal balance as a result of such
      default.

     

    1. This
      note
      (the “Note”) is issued pursuant to the terms of that certain Securities Purchase
      Agreement (the “Agreement”) dated as of February ________, 2007, by and among
      Company and Holder.

     

    2. Unless
      converted in accordance with Paragraph 6, this Note is due and payable on
      demand, which may be made at any time after the earlier of (i) _______________
      (the “Maturity Date”) or (ii) the occurrence of an Event of Default (as defined
      in Paragraph 5). Prepayment of principal under this Note without the express
      written consent of the Holder is not permitted except in accordance Paragraph
      6
      hereof. This Note is not secured by any assets of the Company and is
      subordinated in right of payment to the secured indebtedness of the Company.
      Notwithstanding the foregoing, Joseph Shortal has provided a personal guarantee
      for this Note in the form attached as Appendix
      A
      hereto.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    3. All
      payments of interest and principal shall be in lawful money of the United States
      of America to Holder, at the address specified in the Agreement, or at such
      other address as may be specified from time to time by Holder in a written
      notice delivered to Company. All payments shall be applied first to accrued
      interest, and thereafter to principal. 

     

    4. No
      fractional shares shall be issued upon conversion of this Note. In lieu of
      any
      fractional shares to which the holder would otherwise be entitled, the Company
      shall pay cash equal to the product of such fraction multiplied by the price
      per
      share paid by the Investors purchasing the Conversion Shares (subject to
      adjustment for stock splits, dividends, and recapitalizations).

     

    5. Any
      of
      the following events are “Events of Default”: 

     

    5.1 The
      Company shall fail to make any payments of principal of or interest on this
      Note
      when due, and such failure to pay continues for more than ten (10) days after
      written notice thereof from the Holder to the Company; 

     

    5.2 The
      Company fails to comply with or to perform when due any other material term,
      obligation, covenant, or condition contained in this Note; 

     

    5.3
       Any
      representation or statement made by the Company to the Holder in this Note
      or
      the Agreement is false or misleading in any material respect either now or
      at
      the time made; 

     

    5.4 After
      April 1, 2007: 

     

    (a) The
      Company defaults under any loan, extension of credit, security agreement,
      purchase or sales agreement, or any other agreement, in favor of any other
      creditor or person that may materially affect the Company’s ability to repay
      this Note or to perform its obligations under this Note;

     

    (b)
       The
      Company becomes insolvent, a receiver is appointed for any substantial part
      of
      its property, the Company makes an assignment for the benefit of creditors,
      or
      any proceeding is commenced by the Company (i.e. a voluntary bankruptcy
      proceeding) or against the Company under any bankruptcy or insolvency laws;
      or

     

    (c) A
      material adverse change occurs in the Company’s financial condition from the
      date hereof or Holder reasonably believes the prospect of payment or performance
      of the indebtedness under this Note is impaired.

     

    Notwithstanding
      the immediately preceding paragraph, if any default (other than a default in
      payment or initial default of Subsections 5.4(a), (b) or (c) at April 1, 2007)
      is curable and if the Company has not been given a notice of breach of the
      same
      provision of this Note within the preceding three (3) months, it may be cured
      (and no event of default will be deemed to have occurred) if the Debtor, after
      receiving written notice from Holder demanding cure of such default: (a) cures
      the default within thirty (30) days; or (b) if the cure requires more than
      thirty (30) days, immediately initiates steps which Holder deems in its sole
      discretion to be sufficient to cure the default and thereafter continues and
      completes all reasonable and necessary steps sufficient to produce compliance
      as
      soon as reasonably practical. Upon any Event of Default, the Holder may declare
      the total outstanding principal and accrued, unpaid interest to be immediately
      due and payable. All of the rights and remedies of the Holder hereunder shall
      be
      cumulative, and none of which shall be exclusive, to the extent permitted by
      law. 

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    6. The
      Company may (i) prepay the outstanding principal balance and unpaid accrued
      interest of this Note in full or (ii) convert the outstanding principal balance
      and unpaid accrued interest of this Note into shares of the Company’s common
      stock (“Conversion Shares”) at a conversion price per share equal to 50% of the
      average market price during the five (5) days prior to conversion, immediately
      prior to or concurrently with the consummation of any sale of securities of
      the
      Company occurring after the date of the Agreement and having gross proceeds
      to
      the Company of at least $1,000,000. The Holder acknowledges that such Conversion
      Shares shall be subject to the terms and conditions set forth in Section 3
      of
      the Agreement and upon conversion, the Holder shall execute such documents
      or
      instruments as may be reasonable requested by the Company consistent with
      Section 3 of the Agreement. Without limiting the foregoing, the Holder
      acknowledges that the Conversion Shares will be characterized as “restricted
      securities” under the federal securities laws inasmuch as they are being
      acquired from the Company in a transaction not involving a public offering
      and
      that under such laws and applicable regulations such securities may be resold
      without registration under the Act, only in certain limited circumstances.
      As
      promptly as practicable after the date upon which conversion has occurred,
      the
      Company shall issue and deliver to the Holder a certificate or certificates
      for
      the full number of Conversion Shares to which the Holder is entitled and a
      check
      or cash with respect to any fractional interest in a Conversion Share as
      provided in Section 4. 

     

    7. This
      Note
      is to be construed in accordance with and governed by the internal laws of
      the
      State of California without giving effect to any choice of law rule that would
      cause the application of the laws of any jurisdiction other than the internal
      laws of the State of California to the rights and duties of the Company and
      the
      Holder. All disputes and controversies arising out of or in connection with
      this
      Note shall be resolved exclusively by the state and federal courts located
      in
      Los Angeles County in the State of California, and each of the Company and
      the
      Holder hereto agrees to submit to the jurisdiction of said courts and agrees
      that venue shall lie exclusively with such courts.

     

    8. Any
      term
      of this Note may be amended and the observance of any term of this Note may
      be
      waived (either generally or in a particular instance and either retroactively
      or
      prospectively), only with the written consent of the Company and the Holder.
      Any
      amendment or waiver effected in accordance with this paragraph shall be binding
      upon the Company and the Holder.

     

    9. The
      Company and all endorsers, guarantors and sureties of this Note and all other
      persons liable or to become liable on this Note severally waive presentment
      for
      payment, demand, notice of demand and of dishonor and nonpayment of this Note,
      notice of intention to accelerate the maturity of this Note, notice of
      acceleration, protest and notice of protest, diligence in collecting, and the
      bringing of suit against any other party, and agree to all renewals, extensions,
      modifications, partial payments, in whole or in part with or without notice,
      before or after maturity.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    10. If
      one or
      more provisions of this Note are held to be unenforceable under applicable
      law,
      such provision shall be excluded from this Note and the balance of the Note
      shall be interpreted as if such provision were so excluded and shall be
      enforceable in accordance with its terms

     

    IN
      WITNESS WHEREOF, the Company has caused this Note to be duly executed by its
      officers, thereunto duly authorized, as of the date first above
      written.

     

    
      	 	 	 
	 	SUB-URBAN
              BRANDS, INC.
	 
 	 
 	 
 
	 	By:  	 
	 	
              

            

    

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    APPENDIX
      A

    TO
      CONVERTIBLE PROMISSORY NOTE

    

    GUARANTEE

     

     

    The
      undersigned, Joseph Shortal, is an Officer, Director, and principal stockholders
      of Sub-Urban Brands, Inc., a Nevada corporation (the “Company”), the maker of
      the attached promissory note (the “Note”). The undersigned unconditionally
      guarantees payment in full of all of the principal, interest and other monetary
      obligations of the Company under the Note, and the performance of all other
      terms, provisions, promises, and covenants of the Company in the Note and hereby
      consent to any extensions of time or changes in the manner of payment or
      performance of any of the terms and conditions of the Note, which the Holder
      (as
      defined in the Note) may grant to the Company, all without notice to the
      undersigned. The undersigned also agrees to indemnify and hold the Holder
      harmless against all losses (including reasonable attorneys’ and experts’ fees
      and court costs) in any way suffered or incurred or paid by Holder as a result
      of or in any way arising from a default by the Company under the Note or under
      this Guarantee by the guarantor. Nothing shall satisfy the liability of the
      undersigned except the full payment and performance of all of the obligations
      of
      the Company to the Holder under the Note. The obligations of the undersigned
      hereunder shall be direct and primary, arising in the same manner as if the
      undersigned had executed the Note. THE UNDERSIGNED ACKNOWLEDGES THAT THE
      TRANSACTION UNDER WHICH THIS GUARANTEE IS GIVEN IS A COMMERCIAL TRANSACTION,
      AND
      THE UNDERSIGNED WAIVES SUCH RIGHTS AS HE MAY HAVE UNDER APPLICABLE FEDERAL
      OR
      STATE LAW PERTAINING TO THE PREJUDGMENT REMEDIES AGAINST THE UNDERSIGNED. This
      guarantee shall be binding upon the undersigned and his respective heirs and
      legal representatives, and shall inure to the benefit of the Holder and its
      heirs, legal representatives, and assigns.

    

     

    ____________________________

    Joseph
      Shortal

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    

     

    EXHIBIT
      B

     

    TO
      UNIT
      PURCHASE AGREEMENT

     

     

    CERTIFICATE
      OF ACCREDITED INVESTOR STATUS

     

     

    Except
      as
      may be indicated by the undersigned below, the undersigned is an “accredited
      investor,” as that term is defined in Regulation D under the Securities Act of
      1933, as amended (the “Securities
      Act”).
      The
      undersigned has initialed the box below indicating the basis on which he is
      representing his status as an “accredited investor”:

     

    
      	
              ____

            	
              a
                bank as defined in Section 3(a)(2) of the Securities Act, or any
                savings
                and loan association or other institution as defined in Section 3(a)(5)(A)
                of the Securities Act whether acting in its individual or fiduciary
                capacity; a broker or dealer registered pursuant to Section 15 of
                the
                Securities Exchange Act of 1934, as amended (the “Securities
                Exchange Act”);
                an insurance company as defined in Section 2(13) of the Securities
                Act; an
                investment company registered under the Investment Company Act of
                1940 or
                a business development company as defined in Section 2(a)(48) of
                that Act;
                a small business investment company licensed by the U.S. Small Business
                Administration under Section 301(c) or (d) of the Small Business
                Investment Act of 1958; a plan established and maintained by a state,
                its
                political subdivisions, or any agency or instrumentality of a state
                or its
                political subdivisions, for the benefit of its employees, and such
                plan
                has total assets in excess of $5,000,000; an employee benefit plan
                within
                the meaning of the Employee Retirement Income Security Act of 1974,
                if the
                investment decision is made by a plan fiduciary, as defined in Section
                3(21) of such Act, which is either a bank, savings and loan association,
                insurance company, or registered investment adviser, or if the employee
                benefit plan has total assets in excess of $5,000,000 or, if a
                self-directed plan, with investment decisions made solely by persons
                that
                are “accredited investors”;

            

    

     

    
      	
              ____

            	
              a
                private business development company as defined in Section 202(a)(22)
                of
                the Investment Advisers Act of
                1940;

            

    

     

     

    
      	
              ____

            	
              an
                organization described in Section 501(c)(3) of the Internal Revenue
                Code,
                corporation, Massachusetts or similar business trust, or partnership,
                not
                formed for the specific purpose of acquiring the securities offered,
                with
                total assets in excess of
                $5,000,000;

            

    

     

    
      	
              ____

            	
              a
                natural person whose individual net worth, or joint net worth with
                the
                undersigned’s spouse, at the time of this purchase exceeds
                $1,000,000;

            

    

     

    
      	
              ____

            	
              a
                natural person who had an individual income in excess of $200,000
                in each
                of the two most recent years or joint income with the undersigned’s spouse
                in excess of $300,000 in each of those years and has a reasonable
                expectation of reaching the same income level in the current
                year;

            

    

     

    
      	
              ____

            	
              a
                trust with total assets in excess of $5,000,000, not formed for the
                specific purpose of acquiring the securities offered, whose purchase
                is
                directed by a person who has such knowledge and experience in financial
                and business matters that he is capable of evaluating the merits
                and risks
                of the prospective investment; 

            

    

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    
      	
              ____

            	
              an
                entity in which all of the equity holders are “accredited investors” by
                virtue of their meeting one or more of the above standards;
                or

            

    

     

    
      	
              ____

            	
              an
                individual who is a director or executive officer of Sub-Urban Brands,
                Inc.

            

    

     

     

    IN
      WITNESS WHEREOF,
      the
      undersigned has executed this Certificate of Accredited Investor Status
      effective as of __________________, _____. 

     

     

    By:
      ________________________

     

    Name:
      ______________________

     

    Title:
      _______________________

     

    
      
        
        

      

      
        14

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