Document:

Exhibit 10.1

                          QUEST MINERALS & MINING CORP.

                       CONVERTIBLE NOTE PURCHASE AGREEMENT

         This Convertible Note Purchase Agreement ("Agreement") is made as of
March 10, 2008, but is only effective as of the date of acceptance of the
"Purchaser Signature Page" by and between Quest Minerals & Mining Corp., a Utah
corporation (the "Company"), and Gross Foundation, Inc. (the "Purchaser").

                                 R E C I T A L S
                                 - - - - - - - -

         A.       The Company desires to obtain funds from the Purchaser in
order to retire debt, provide working capital, to and further the operations of
the Company.

         B.       In order to obtain such funds, the Company is offering a
convertible promissory note (the "Note") in the aggregate principal amount of up
to $75,000.00. The Note is convertible into (the "Shares") of common stock,
$.001 par value per share (the "Common Stock") at the Conversion Price set forth
in the Note, on the terms and subject to the conditions set forth herein. The
Note and the Shares are collectively referred to herein as the "Securities."

                                    AGREEMENT
                                    ---------

         It is agreed as follows:

         1.       PURCHASE AND SALE OF NOTE. In reliance upon the
representations and warranties of the Company and the Purchaser contained herein
and subject to the terms and conditions set forth herein, at Closing, the
Purchaser shall purchase, and the Company shall sell and issue to each
Purchaser, the Note in the principal amount of $75,000 (the "Purchase Price").
The aggregate Purchase Price for the sale of the Note contemplated hereby shall
be held in escrow pursuant to the terms of a Escrow Agreement to be executed by
the parties in the form attached hereto as Exhibit A (the "Escrow Agreement").

         2.       CLOSING.

                  2.1      Date and Time. The closing of the sale of the Note
contemplated by this Agreement (the "Closing") shall take place at the offices
of Indeglia & Carney, P.C., counsel for the Company, on or before March 11,
2008.

                  2.2      Deliveries by Purchaser. Purchaser shall deliver the
following at Closing:

                           2.2.1     a completed and executed Purchaser
Signature Page

                           2.2.2     a completed and executed Escrow Agreement.

                           2.2.3     a check or wire transfer to the account
specified in the Escrow Agreement in the amount of the Purchase Price.

                                      -1-
<PAGE>

                  2.3      Deliveries by Company. The Company shall deliver the
following at Closing:

                           2.3.1     a completed and executed copy of this
Agreement

                           2.3.2     a executed copy of a Note, in definitive
form and registered in the name of Purchaser against delivery of the items set
forth in Section 2.2 above.

         3.       REPRESENTATIONS AND WARRANTIES OF THE COMPANY.

         As a material inducement to the Purchaser to enter into this Agreement
and to purchase the Note, the Company represents and warrants that the following
statements are true and correct in all material respects as of the date hereof
and will be true and correct in all material respects at Closing, except as
expressly qualified or modified herein.

                  3.1      Organization and Good Standing. The Company is a
corporation duly organized, validly existing, and in good standing under the
laws of the State of Utah and has full corporate power and authority to enter
into and perform its obligations under this Agreement, and to own its properties
and to carry on its business as presently conducted and as proposed to be
conducted.

                  3.2      Capitalization. The Company is authorized to issue
975,000,000 shares of Common Stock of which, as of February 26, 2008,
approximately 97,867,219 shares were issued and outstanding, and 10,000,000
shares of preferred stock, $0.001 par value, of which 432,397 shares are issued
and outstanding as Series A Preferred Stock, 48,284 shares are issued and
outstanding as Series B Preferred Stock and 260,000 shares are issued and
outstanding as Series C Preferred Stock. All outstanding shares of Common Stock
have been duly authorized and validly issued, and are fully paid, nonassessable,
and free of any preemptive rights.

                  3.3      Validity of Transactions. This Agreement, and each
document executed and delivered by the Company in connection with the
transactions contemplated by this Agreement, including this Agreement, have been
duly authorized, executed and delivered by the Company and is each the valid and
legally binding obligation of the Company, enforceable in accordance with its
terms, except as limited by applicable bankruptcy, insolvency reorganization and
moratorium laws and other laws affecting enforcement of creditor's rights
generally and by general principles of equity.

                  3.4      Valid Issuance of Note The Note that is being issued
to Purchaser hereunder, when issued, sold and delivered in accordance with the
terms hereof for the consideration expressed herein, will be duly and validly
issued, fully paid and nonassessable and free of restrictions on transfer, other
than restrictions on transfer under this Agreement and under applicable federal
and state securities laws, will be free of all other liens and adverse claims.

                  3.5      No Violation. The execution, delivery and performance
of this Agreement has been duly authorized by the Company's Board of Directors
and will not violate any law or any order of any court or government agency
applicable to the Company, as the case may be, or the Articles of Incorporation
or Bylaws of the Company.

                                      -2-
<PAGE>

                  3.6      SEC Reports and Financial Statements.
                           ------------------------------------

                           3.6.1     The Company has delivered or made available
to each Purchaser accurate and complete copies (excluding copies of exhibits) of
each report, registration statement, and definitive proxy statement filed by the
Company with the United States Securities and Exchange Commission ("SEC") since
January 1, 2007 (collectively, with all information incorporated by reference
therein or deemed to be incorporated by reference therein, the "SEC Reports").
All statements, reports, schedules, forms and other documents required to have
been filed by the Company with the SEC have been so filed on a timely basis,
except as indicated in such SEC Reports. As of the time it was filed with the
SEC (or, if amended or superseded by a filing prior to the date of this
Agreement, then on the date of such filing): (i) each of the SEC Reports
complied in all material respects with the applicable requirements of the
Securities Act of 1933, as amended (the "1933 Act"), or the Securities Exchange
Act of 1934, as amended (the "1934 Act"); and (ii) none of the SEC Reports
contained any untrue statement of a material fact or omitted to state a material
fact required to be stated therein or necessary in order to make the statements
therein, in the light of the circumstances under which they were made, not
misleading.

                           3.6.2     Except for the pro forma financial
statements, the consolidated financial statements contained in the SEC Reports:
(i) complied as to form in all material respects with the published rules and
regulations of the SEC applicable thereto; (ii) were prepared in accordance with
GAAP applied on a consistent basis throughout the periods covered (except as may
be indicated in the notes to such financial statements and, in the case of
unaudited statements, as permitted by Form 10-QSB of the SEC, and except that
unaudited financial statements may not contain footnotes and are subject to
normal and recurring year-end audit adjustments which will not, individually or
in the aggregate, be material in amount); and (iii) fairly present, in all
material respects, the consolidated financial position of the Company and its
consolidated subsidiaries as of the respective dates thereof and the
consolidated results of operations of the Company and its consolidated
subsidiaries for the periods covered thereby. All adjustments considered
necessary for a fair presentation of the financial statements have been
included.

                  3.7      Securities Law Compliance. Assuming the accuracy of
the representations and warranties of Purchaser set forth in Section 4 of this
Agreement, the offer, issue, sale and delivery of the Note will constitute an
exempted transaction under the 1933 Act, and registration of the Note under the
1933 Act is not required. The Company shall make such filings as may be
necessary to comply with the Federal securities laws, which filings will be made
in a timely manner.

         4.       REPRESENTATIONS AND WARRANTIES OF PURCHASER.

         Purchaser hereby represents, warrants and covenants with the Company as
follows:

                  4.1      Legal Power. Each Purchaser has the requisite
individual, corporate, partnership, limited liability company, trust, or
fiduciary power, as appropriate, and is authorized, if such Purchaser is a
corporation, partnership, limited liability company, or trust, to enter into
this Agreement, to purchase the Units hereunder, and to carry out and perform
its obligations under the terms of this Agreement.

                                      -3-
<PAGE>

                  4.2      Due Execution. This Agreement has been duly
authorized, if such Purchaser is a corporation, partnership, limited liability
company, trust or fiduciary, executed and delivered by such Purchaser, and, upon
due execution and delivery by the Company, this Agreement will be a valid and
binding agreement of Purchaser.

                  4.3      Access to Information. Purchaser represents that such
Purchaser has been given full and complete access to the Company for the purpose
of obtaining such information as such Purchaser or its qualified representative
has reasonably requested in connection with the decision to purchase the Note.
Purchaser represents that it has received and reviewed copies of the SEC
Reports. Purchaser represents that it has been afforded the opportunity to ask
questions of the officers of the Company regarding its business prospects and
the Units, all as Purchaser or Purchaser's qualified representative have found
necessary to make an informed investment decision to purchase the Note.

                  4.4      Restricted Securities.
                           ---------------------

                           4.4.1     Purchaser has been advised that none of the
Securities have been registered under the Securities Act or any other applicable
securities laws and that Units are being offered and sold pursuant to Section
4(2) of the Securities Act and/or Rule 506 of Regulation D thereunder, and that
the Company's reliance upon Section 4(2) and/or Rule 506 of Regulation D is
predicated in part on Purchaser representations as contained herein. Purchaser
acknowledges that the Securities will be issued as "restricted securities" as
defined by Rule 144 promulgated pursuant to the Securities Act. None of the
Securities may be resold in the absence of an effective registration thereof
under the Securities Act and applicable state securities laws unless, in the
opinion of the Company's counsel, an applicable exemption from registration is
available.

                           4.4.2     Purchaser represents that it is acquiring
the Note for Purchaser's own account, and not as nominee or agent, for
investment purposes only and not with a view to, or for sale in connection with,
a distribution, as that term is used in Section 2(11) of the Securities Act, in
a manner which would require registration under the Securities Act or any state
securities laws.

                           4.4.3     Purchaser understands and acknowledges that
the Securities, when issued, will bear the following legend:

         THE SECURITIES EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
         UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF
         ANY STATE. THE SECURITIES HAVE BEEN ACQUIRED FOR INVESTMENT AND MAY NOT
         BE SOLD OR TRANSFERRED FOR VALUE IN THE ABSENCE OF AN EFFECTIVE
         REGISTRATION THEREOF UNDER THE SECURITIES ACT OF 1933 AND/OR THE
         SECURITIES ACT OF ANY STATE HAVING JURISDICTION OR AN OPINION OF
         COUNSEL ACCEPTABLE TO THE CORPORATION THAT SUCH REGISTRATION IS NOT
         REQUIRED UNDER SUCH ACT OR ACTS.

                                      -4-
<PAGE>

                           4.4.4     Purchaser acknowledges that an investment
in the Securities is not liquid and is transferable only under limited
conditions. Purchaser acknowledges that such securities must be held
indefinitely unless they are subsequently registered under the Securities Act or
an exemption from such registration is available. Purchaser is aware of the
provisions of Rule 144 promulgated under the Securities Act, which permits
limited resale of restricted securities subject to the satisfaction of certain
conditions and that such Rule is not now available and, in the future, may not
become available for resale of any of the Securities.

                           4.4.5     Purchaser is an "accredited investor" as
defined under Rule 501 under the Securities Act. The representations made by
Purchaser on the Purchaser Signature Page are true and correct.

                  4.5      Purchaser Sophistication and Ability to Bear Risk of
Loss. Purchaser acknowledges that it is able to protect its interests in
connection with the acquisition of the Note and can bear the economic risk of
investment in such securities without producing a material adverse change in
such Purchaser's financial condition. Purchaser, either alone or with such
Purchaser's representative(s), otherwise has such knowledge and experience in
financial or business matters that such Purchaser is capable of evaluating the
merits and risks of the investment in the Note.

                  4.6      Preexisting Relationship. Purchaser has a preexisting
personal or business relationship with the Company, one or more of its officers,
directors, or controlling persons.

                  4.7      Purchases by Groups. Purchaser represents, warrants
and covenants that it is not acquiring the Note as part of a group within the
meaning of Section 13(d)(3) of the Securities Exchange Act of 1934, as amended.

         5.       COVENANTS OF THE COMPANY.

                  5.1      Use of Proceeds. The Company intends to employ the
proceeds from the purchase and sale of the Notes for the purposes set forth on
Schedule 5.1 hereto. Except as set forth on Schedule 5.1, the proceeds from the
purchase and sale of the Note may not and will not be used for accrued and
unpaid officer and director salaries, payment of financing related debt,
redemption of outstanding notes or equity instruments of the Company, litigation
related expenses or settlements, brokerage fees, nor non-trade obligations
outstanding on a Closing Date. Pending the Company's use of the proceeds from
the purchase and sale of the Note, the Company intends to invest the funds in
government securities and insured, short-term, interest-bearing investments of
varying maturities. Schedule 5.1 represents the Company's best estimate of the
allocation of the proceeds from the purchase and sale of the Note. Future
events, including the problems, delays, expenses, and complications frequently
encountered by development stage companies such as the Company, as well as
changes in economic, regulatory, or competitive conditions, changes in the
Company's planned business (and its success or failure), and changes in the
Company's product development activities, may require that it reallocate funds.
It is possible that that the estimates in Schedule 5.1 will prove inaccurate,

                                      -5-
<PAGE>

that the Company's efforts to introduce its products and services will require
considerable additional expenditures, or that unforeseen events will cause the
Company to expend more funds than it currently expects

                  5.2      Public Filings. The Company shall file the reports
required to be filed by it under the Securities Act of 1933, as amended and the
Securities Exchange Act of 1934, as amended and the rules and regulations
adopted by the Securities and Exchange Commission thereunder, and will take such
further action as Purchaser may reasonably request, all to the extent required
from time to time to enable Purchaser to sell Shares of held by it without
registration under the Securities Act within the limitation of the exemption
provided by Rule 144. If, at any time beginning after September 10, 2008, the
Company has failed to file reports required to enable sales by Purchaser of
Shares pursuant to Rule 144 ("Not Current"), then, for each 30 day period that
(or portion thereof) the Company is Not Current, the Company shall deliver to
Purchaser, as liquidated damages ("Liquidated Damages"), an amount equal to two
percent (2%) of the Purchase Price of the Note remaining outstanding (which
amount shall be pro-rated for periods shorter than 30 days); provided, however,
that if the Company is Not Current for a period in excess of 60 days, then from
and after such 60 day period the Liquidated Damages shall be increased to three
percent (3%) for each subsequent 30 day period (or portion thereof). The
Liquidated Damages must be paid within 20 days after the end of each thirty (30)
day period for which Liquidated Damages are payable.

                  5.3      Reservation of Common Stock. The Company shall
reserve 75,000,000 shares of Common Stock to provide for the issuance of the
Shares.

         6.       MISCELLANEOUS.

                  6.1      Indemnification. Each Purchaser agrees to defend,
indemnify and hold the Company harmless against any liability, costs or expenses
arising as a result of any dissemination of any of the Notes or the Shares by
such Purchaser in violation of the 1933 Act or applicable state securities law.

                  6.2      Restriction on Resales. Purchaser agrees that at any
time while the Note is outstanding, Purchaser and its affiliates shall not make
any Net Sales (as defined below) of Common Stock held by it on any single day
during such period. "Net Sales" means, with respect to any date of
determination, the difference of (A) the number of shares of Common Stock sold,
including by way of short sales, or otherwise transferred or disposed of,
directly or indirectly, on such date of determination by Purchaser and its
affiliates minus (B) the number of shares of Common Stock purchased, directly or
indirectly (including a conversion of the Note), on such date of determination
by Purchaser and its affiliates. Notwithstanding the above, any overselling
unintentional or by error which is rectified within 5 business days shall not be
considered a violation of this Agreement.

                  6.3      Governing Law. This Agreement shall be governed by
and construed under the laws of the State of New Jersey.

                                      -6-
<PAGE>

                  6.4      Successors and Assigns. Except as otherwise expressly
provided herein, the provisions hereof shall inure to the benefit of, and be
binding upon, the successors, assigns, heirs, executors, and administrators of
the parties hereto.

                  6.5      Entire Agreement. This Agreement and the Exhibits
hereto and thereto, and the other documents delivered pursuant hereto and
thereto, constitute the full and entire understanding and agreement among the
parties with regard to the subjects hereof and no party shall be liable or bound
to any other party in any manner by any representations, warranties, covenants,
or agreements except as specifically set forth herein or therein. Nothing in
this Agreement, express or implied, is intended to confer upon any party, other
than the parties hereto and their respective successors and assigns, any rights,
remedies, obligations, or liabilities under or by reason of this Agreement,
except as expressly provided herein.

                  6.6      Severability. In case any provision of this Agreement
shall be invalid, illegal, or unenforceable, it shall to the extent practicable,
be modified so as to make it valid, legal and enforceable and to retain as
nearly as practicable the intent of the parties, and the validity, legality, and
enforceability of the remaining provisions shall not in any way be affected or
impaired thereby.

                  6.7      Amendment and Waiver. Except as otherwise provided
herein, 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, either retroactively or prospectively, and either for a specified
period of time or indefinitely), with the written consent of the Company and the
Purchasers, or, to the extent such amendment affects only one Purchaser, by the
Company and such Purchaser. Any amendment or waiver effected in accordance with
this Section shall be binding upon each future holder of any security purchased
under this Agreement (including securities into which such securities have been
converted) and the Company.

                  6.8      Notices. All notices and other communications
required or permitted hereunder or the Note shall be in writing and shall be
effective when delivered personally, or sent by telex or telecopier (with
receipt confirmed), provided that (other than Conversion Notices under the Note)
a copy is mailed by certified mail, return receipt requested, or when received
by the addressee, if sent by Express Mail, Federal Express or other express
delivery service (receipt requested) in each case to the appropriate address set
forth below:

                  If to the Company:      Quest Minerals & Mining Corp.
                                          18B 5th Street
                                          Paterson, NJ 07524
                                          Attention: President
                                          Fax: (973) 684-8009

                                          With a copy to:

                                          Indeglia & Carney, P.C.
                                          1900 Main Street, Suite 125
                                          Irvine, CA 92614
                                          Attention: Marc A. Indeglia, Esq.
                                          Fax: (949) 851-5940

                                      -7-
<PAGE>

                  If to the Purchaser: At the address set forth on the
Purchaser's Signature Page

                  6.9      Faxes and Counterparts. This Agreement may be
executed in one or more counterparts. Delivery of an executed counterpart of the
Agreement or any exhibit attached hereto by facsimile transmission shall be
equally as effective as delivery of an executed hard copy of the same. Any party
delivering an executed counterpart of this Agreement or any exhibit attached
hereto by facsimile transmission shall also deliver an executed hard copy of the
same, but the failure by such party to deliver such executed hard copy shall not
affect the validity, enforceability or binding nature effect of this Agreement
or such exhibit.

                  6.10     Titles and Subtitles. The titles of the paragraphs
and subparagraphs of this Agreement are for convenience of reference only and
are not to be considered in construing this Agreement.

         IN WITNESS WHEREOF, the parties have executed this Agreement as of the
date set forth on the Purchase Signature Page hereto.

                                       PURCHASER

                                       (By Counterpart Form - SP Pages)

                                       COMPANY

                                       QUEST MINERALS & MINING CORP.

                                       By:_____________________________________
                                          Eugene Chiaramonte, Jr.,
                                          President

                                      -8-
<PAGE>

                            PURCHASER SIGNATURE PAGE

         The undersigned Purchaser has read the Convertible Note Purchase
Agreement dated as of March 10, 2008 and acknowledges that execution of this
Purchaser Signature Page shall constitute the undersigned's execution of such
agreement.

         I hereby subscribe for an aggregate of $75,000.00 in principal amount
of Notes and hereby deliver good funds with respect to this subscription for the
Notes.

         I am a resident of the Brooklyn, New York.

                             Gross Foundation, Inc.
--------------------------------------------------------------------------------
     Please print above the exact name(s) in which the Notes are to be held

                  My address is:     1660 49th Street
                                     Brooklyn, New York 12204

                                      SP-1
<PAGE>

         Executed this 10th day of March, 2008 at Brooklyn, New York.

                                   SIGNATURES

                                   INDIVIDUAL

                                       _________________________________________
                                       Name

_________________________________      _________________________________________
Signature (Individual)                 Street address

                                       Address to Which Correspondence Should be
                                       Directed

_________________________________      _________________________________________
Signature (All record holders          City, State and Zip Code
should sign)

_________________________________      _________________________________________
Name(s) Typed or Printed               Tax Identification or Social Security
                                       Number

                                       (  )
                                       _________________________________________
                                       Telephone Number

_________________________________
Name(s) Typed or Printed (All
recorded holders should sign)

                                      SP-2
<PAGE>

                CORPORATION, PARTNERSHIP, TRUST ENTITY OR OTHER

Gross Foundation, Inc.                 Address to Which Correspondence Should be
_________________________________      Directed:
Name of Entity

Corporation                            1660 49th Street
_________________________________      _________________________________________
Type of Entity (i.e., corporation,     Street Address
partnership, etc.)

                                       11-3006419
By: _____________________________      _________________________________________
    *Signature                         Tax Identification or Social Security
                                       Number

New York                               Brooklyn, New York 11204
_________________________________      _________________________________________
Jurisdiction of Formation of Entity    City, State and Zip Code

Chaim Gross
_________________________________
Name Typed or Printed

                                       (718) 851-7724; (718) 851-3511
Its: ____________________________      _________________________________________
     Title                             Telephone Number; Fax Number

*If Notes are being subscribed for by an entity, the Certificate of Signatory
must also be completed.

                                      SP-3
<PAGE>

                            CERTIFICATE OF SIGNATORY

          To be completed if Note is being subscribed for by an entity.

         I, Chaim Gross, am the President of Gross Foundation, Inc. (the
"Entity").

         I certify that I am empowered and duly authorized by the Entity to
execute and carry out the terms of the Convertible Note Purchase Agreement and
to purchase and hold the Note. The Convertible Note Purchase Agreement has been
duly and validly executed on behalf of the Entity and constitutes a legal and
binding obligation of the Entity.

         IN WITNESS WHEREOF, I have hereto set my hand this 10th day of March,
2008.

                                       _________________________________________
                                                       Signature

                                      SP-4
<PAGE>

ACCEPTANCE

AGREED AND ACCEPTED:

QUEST MINERALS & MINING CORP.

By: ____________________________________
    Eugene Chiaramonte, Jr.
    President

Date:  March 11, 2008

                                      SP-5
<PAGE>

                                  SCHEDULE 5.1

                                 USE OF PROCEEDS

$15,000    Accountant's Fees (to be held in escrow pursuant to the Escrow
           Agreement)
$5,000     Working Capital for Mine Operations and Satisfaction of Payables
           arising out of Mine Operations
$5,000     Legal Fees (estimated)
$30,000    Purchase of Equipment for Mine Operations
$20,000    Supplies and Payroll for Mine OperationsExhibit 10.2

THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED, AND MAY NOT BE OFFERED OR SOLD IN THE ABSENCE OF AN EFFECTIVE
REGISTRATION STATEMENT UNDER SAID ACT OR PURSUANT TO AN AVAILABLE EXEMPTION
FROM, OR IN A TRANSACTION NOT SUBJECT TO, REGISTRATION UNDER SAID ACT.

                           CONVERTIBLE PROMISSORY NOTE

U.S. $75,000.00                                                   March 11, 2008

         FOR VALUE RECEIVED, Quest Minerals & Mining Corp., a Utah corporation
(the "Maker"), hereby promises to pay to Gross Foundation. Inc., or its
successors and assigns (the "Payee"), at its address at 1660 49th Street,
Brooklyn, New York 11204, or to such other address as Payee shall provide in
writing to the Maker for such purpose, a principal sum of Seventy Five Thousand
Dollars (U.S. $75,000.00). The aggregate principal amount outstanding under this
Note will be conclusively evidenced by the schedule annexed as Exhibit B hereto
(the "Loan Schedule"), up to a maximum principal document of U.S $75,000. The
entire principal amount hereunder shall be due and payable in full on March 10,
2009 (the "Maturity Date"), or on such earlier date as such principal amount may
earlier become due and payable pursuant to the terms hereof.

         1.       Interest Rate. Interest shall accrue on the unpaid principal
amount of this Secured Convertible Promissory Note (the "Note") at the rate of
fifteen percent (15%) per annum from the date of the first making of the loan
for such principal amount until such unpaid principal amount is paid in full or
earlier converted into shares (the "Shares") of the Maker's common stock, $0.001
par value (the "Common Stock") in accordance with the terms hereof. Interest
hereunder shall be paid on the Maturity Date or on such earlier date as the
principal amount under this Note becomes due and payable or is converted in
accordance with the terms hereof and shall be computed on the basis of a 360-day
year for the actual number of days elapsed.

         2.       Conversion of Principal and Interest. Subject to the terms and
conditions hereof, the Payee, at its sole option, may deliver to the Maker a
notice in the form attached hereto as Exhibit A (a "Conversion Notice") and an
updated Loan Schedule, at any time and from time to time after the date hereof
and prior to the payment of the principal amount and all accrued interest
thereon (the date of the delivery of a Conversion Notice (except as otherwise
set forth in the last sentence of this paragraph, a "Conversion Date"), to
convert all or any portion of the outstanding principal amount of this Note plus
accrued and unpaid interest thereon, for a number of Shares equal to the
quotient obtained by dividing the dollar amount of such outstanding principal
amount of this Note plus the accrued and unpaid interest thereon being converted
by the Conversion Price (as defined in Section 14). Conversions hereunder shall
have the effect of lowering the outstanding principal amount of this Note plus
all accrued and unpaid interest thereunder in an amount equal to the applicable
conversion, which shall be evidenced by entries set forth in the Conversion
Notice and the Loan Schedule. If the Maker determines that there is any
deficiency or inaccuracy in the Conversion Notice or the Loan Schedule, the
Maker shall notify the Payee within two business days of any such deficiency or
inaccuracy and Payee shall have two business days to correct any such inaccuracy
or deficiency without invalidation of the conversion; provided, however, that
the date of submission of the corrected Conversion Notice shall be deemed the
"Conversion Date" for the exclusive purpose of determination of the Delivery
Date (as defined in Section 4) or determination of a "Triggering Event" under
Section 6.

                                       -1-
<PAGE>

         3.       Certain Conversion Limitations.
                  ------------------------------

                  (a)      The Payee may not convert an outstanding principal
amount of this Note or accrued and unpaid interest thereon to the extent such
conversion would result in the Payee, together with any affiliate thereof,
beneficially owning (as determined in accordance with Section 13(d) of the
Exchange Act (as defined in Section 14) and the rules promulgated thereunder) in
excess of 4.999% of the then issued and outstanding shares of Common Stock.
Since the Payee will not be obligated to report to the Maker the number of
shares of Common Stock it may hold at the time of a conversion hereunder, unless
the conversion at issue would result in the issuance of Shares in excess of
4.999% of the then outstanding shares of Common Stock without regard to any
other shares which may be beneficially owned by the Payee or an affiliate
thereof, the Payee shall have the authority and obligation to determine whether
and the extent to which the restriction contained in this Section will limit any
particular conversion hereunder. The provisions of this Section may be waived by
Payee upon not less than 61 days' prior notice to the Maker.

                  (b)      The Payee may not convert an outstanding principal
amount of this Note or accrued and unpaid interest thereon to the extent such
conversion would result in the Payee, together with any affiliate thereof,
beneficially owning (as determined in accordance with Section 13(d) of the
Exchange Act and the rules promulgated thereunder) in excess of 9.999% of the
then issued and outstanding shares of Common Stock. Since the Payee will not be
obligated to report to the Maker the number of shares of Common Stock it may
hold at the time of a conversion hereunder, unless the conversion at issue would
result in the issuance of Shares in excess of 9.999% of the then outstanding
shares of Common Stock without regard to any other shares which may be
beneficially owned by the Payee or an affiliate thereof, the Payee shall have
the authority and obligation to determine whether and the extent to which the
restriction contained in this Section will limit any particular conversion
hereunder. The provisions of this Section may be waived by Payee upon not less
than 61 days' prior notice to the Maker.

                  (c)      The Payee may not convert an outstanding principal
amount of this Note or accrued and unpaid interest thereon to the extent such
conversion would require the Maker to issue shares of Common Stock in excess of
the Maker's then sufficient authorized and unissued shares of Common Stock.

         4.       Deliveries.
                  ----------

                  (a)      Not later than three (3) Trading Days (as defined in
Section 14) after any Conversion Date (the "Delivery Date"), the Maker will
deliver to the Payee (i) a certificate or certificates representing the number
of Shares being acquired upon the conversion of the principal amount of this
Note and any interest accrued thereunder being converted pursuant to the
Conversion Notice (subject to the limitations set forth in Section 3 hereof),
and (ii) an endorsement by the Maker of the Loan Schedule acknowledging the
remaining outstanding principal amount of this Note plus all accrued and unpaid
interest thereon not converted (an "Endorsement"). The Maker's delivery to the
Payee of stocks certificates in accordance clause (i) above shall be Maker's

                                      -2-
<PAGE>

conclusive endorsement of the remaining outstanding principal amount of this
Note plus all accrued and unpaid interest thereon not converted as set forth in
the Loan Schedule.

                  (b)      Maker understands that a delay in the issuance of the
Shares beyond the Delivery Date could result in economic loss to the Payee. As
compensation to Payee for such loss, Maker agrees to pay late payments to Payee
for late issuance of Shares upon conversion in accordance with the following
schedule (where "No. Business Days Late" refers to the number of Trading Days
which is beyond the Delivery Date):

<TABLE>
<CAPTION>

                                    Late Payment for each $10,000 of Principal Being Converted
No. Business Days Late              (pro rated for Conversion Requests of less than $10,000)
---------------------------------   --------------------------------------------------------
<S>                                 <C>
1                                   $100
---------------------------------   --------------------------------------------------------
2                                   $200
---------------------------------   --------------------------------------------------------
3                                   $300
---------------------------------   --------------------------------------------------------
4                                   $400
---------------------------------   --------------------------------------------------------
5                                   $500
---------------------------------   --------------------------------------------------------
6                                   $600
---------------------------------   --------------------------------------------------------
7                                   $700
---------------------------------   --------------------------------------------------------
8                                   $800
---------------------------------   --------------------------------------------------------
9                                   $900
---------------------------------   --------------------------------------------------------
10                                  $1,000
---------------------------------   --------------------------------------------------------
>10                                 $1,0000 + $200 for each Business Day late beyond 10 days
---------------------------------   --------------------------------------------------------
</TABLE>

                  Maker shall pay any payments incurred under this Section 4(b)
in immediately available funds upon demand as the Payee's exclusive remedy
(other than the following provisions of this Section 4(b) or the provisions of
the immediately following Section 4(c) hereof) for such delay. Furthermore, in
addition to any other remedies which may be available to Payee, in the event
that Maker fails for any reason to effect delivery of such Shares by close of
business on the Delivery Date, Payee will be entitled to revoke the relevant
Conversion Notice by delivering a notice to such effect to Maker, whereupon the
Maker and Payee shall each be restored to their respective positions immediately
prior to delivery of such Conversion Notice; provided, however, that an amount
equal to any payments contemplated by this Section 4(b) which have accrued
through the date of such revocation notice shall remain due and owing to the
Converting Payee (as defined below) notwithstanding such revocation. Anything in
the foregoing provisions of this paragraph 4(b) to the contrary notwithstanding,
the total amount payable by the Maker under this paragraph 4(b) shall be reduced
by an amount equal to fifty percent (50%) of any Buy-In Adjustment Amount (as
defined below) actually paid by Maker to the Payee (but not by more than the
total amount due without regard to the provisions of this sentence).

                  (c)      If, by the relevant Delivery Date Maker fails for any
reason to deliver the Shares to be issued upon conversion of this Note and after
such Delivery Date, Payee (a "Converting Payee") purchases, in an arm's-length
open market transaction or otherwise, shares of Common Stock (the "Covering
Shares") in order to make delivery in satisfaction of a sale of Common Stock by
the Converting Payee (the "Sold Shares"), which delivery such Converting Payee
anticipated to make using the Shares to be issued upon such conversion (a
"Buy-In"), the Converting Payee shall have the right, to require Maker to pay to

                                      -3-
<PAGE>

the Converting Payee, in addition to and not in lieu of the amounts due under
Section 4(b) hereof (but in addition to all other amounts contemplated in other
provisions of the Transaction Agreements, and not in lieu of any such other
amounts), the Buy-In Adjustment Amount (as defined below). The "Buy-In
Adjustment Amount" is the amount equal to the excess, if any, of (x) the
Converting Payee's total purchase price (including brokerage commissions, if
any) for the Covering Shares over (y) the net proceeds (after brokerage
commissions, if any) received by the Converting Payee from the sale of the Sold
Shares. The Maker shall pay the Buy-In Adjustment Amount to the Maker in
immediately available funds immediately upon demand by the Converting Payee. By
way of illustration and not in limitation of the foregoing, if the Converting
Payee purchases shares of Common Stock having a total purchase price (including
brokerage commissions) of $11,000 to cover a Buy-In with respect to shares of
Common Stock it sold for net proceeds of $10,000, the Buy-In Adjustment Amount
which Maker will be required to pay to the Converting Payee will be $1,000.

                  (d)      On or after September 11, 2008, Maker agrees that not
later than three (3) Trading Days after Payee submits a written request for an
opinion of Maker's counsel (the "Opinion Request") that the Shares may be resold
in the absence of an effective registration thereof under the Securities Act (as
defined in Section 14) (the "Opinion Delivery Date"), the Maker will deliver, or
cause to have delivered to the Payee the opinion requested under the Opinion
Request (the "Opinion").

                  (e)      Maker understands that a delay in the issuance of the
Opinion beyond the Delivery Date could result in economic loss to the Payee. As
compensation to Payee for such loss, Maker agrees to pay late payments to Payee
for late issuance of the Opinion Shares upon conversion in accordance with the
following schedule (where "No. Business Days Late" refers to the number of
Trading Days which is beyond the Opinion Delivery Date):
<TABLE>
<CAPTION>

                                    Late Payment for each $10,000 of Shares underlying the Opinion
No. Business Days Late              Request (pro rated for Opinion Request of less than $10,000)
---------------------------------   ------------------------------------------------------------
<S>                                 <C>
1                                   $100
---------------------------------   ------------------------------------------------------------
2                                   $200
---------------------------------   ------------------------------------------------------------
3                                   $300
---------------------------------   ------------------------------------------------------------
4                                   $400
---------------------------------   ------------------------------------------------------------
5                                   $500
---------------------------------   ------------------------------------------------------------
6                                   $600
---------------------------------   ------------------------------------------------------------
7                                   $700
---------------------------------   ------------------------------------------------------------
8                                   $800
---------------------------------   ------------------------------------------------------------
9                                   $900
---------------------------------   ------------------------------------------------------------
10                                  $1,000
---------------------------------   ------------------------------------------------------------
>10                                 $1,0000 + $200 for each Business Day late beyond 10 days
---------------------------------   ------------------------------------------------------------
</TABLE>

                  Maker shall pay any payments incurred under this Section 4(d)
in immediately available funds upon demand as the Payee's exclusive remedy;
provided, however, that Payee shall not be entitled to any damages under this
Section if (i) such Opinion Request is made at a time when Maker is Not Current
(as defined in the Purchase Agreement (as defined in Section 14) or (ii) such
delay is due to the fault of Payee.

                                      -4-
<PAGE>

                  (f)      Not later than three (3) Trading Days after
submission by Payee of an Opinion to Maker's transfer agent (the "Transfer Agent
Delivery Date"), the Maker will deliver, or cause to have delivered to the Payee
a certificate or certificates representing the number of Shares referred to
under the Opinion without the restrictive legend as set forth under the Opinion
(the "Reissued Shares").

                  (g)      Maker understands that a delay in the issuance of the
Reissued Shares beyond the Transfer Agent Delivery Date could result in economic
loss to the Payee. As compensation to Payee for such loss, Maker agrees to pay
late payments to Payee for late issuance of Reissued Shares upon conversion in
accordance with the following schedule (where "No. Business Days Late" refers to
the number of Trading Days which is beyond the Transfer Agent Delivery Date):

<TABLE>
<CAPTION>

                                    Late Payment for each $10,000 of Reissued Shares
No. Business Days Late              (pro rated for Reissued Shares of less than $10,000)
---------------------------------   --------------------------------------------------------
<S>                                 <C>
1                                   $100
---------------------------------   --------------------------------------------------------
2                                   $200
---------------------------------   --------------------------------------------------------
3                                   $300
---------------------------------   --------------------------------------------------------
4                                   $400
---------------------------------   --------------------------------------------------------
5                                   $500
---------------------------------   --------------------------------------------------------
6                                   $600
---------------------------------   --------------------------------------------------------
7                                   $700
---------------------------------   --------------------------------------------------------
8                                   $800
---------------------------------   --------------------------------------------------------
9                                   $900
---------------------------------   --------------------------------------------------------
10                                  $1,000
---------------------------------   --------------------------------------------------------
>10                                 $1,0000 + $200 for each Business Day late beyond 10 days
---------------------------------   --------------------------------------------------------
</TABLE>

                  Maker shall pay any payments incurred under this Section 4(g)
in immediately available funds upon demand as the Payee's exclusive remedy.

         5.       Certain Adjustments.
                  -------------------

                  (a)      If the Maker, at any time while any portion of the
principal amount due under this Note is outstanding, (a) shall pay a stock
dividend or otherwise make a distribution or distributions on shares of its
Common Stock or any other equity or equity equivalent securities payable in
shares of Common Stock, (b) subdivide outstanding shares of Common Stock into a
larger number of shares, (c) combine (including by way of reverse stock split)
outstanding shares of Common Stock into a smaller number of shares, or (d) issue
by reclassification of shares of the Common Stock any shares of capital stock of
the Maker, then the Conversion Price (as defined in Section 14) shall be
multiplied by a fraction of which the numerator shall be the number of shares of
Common Stock (excluding treasury shares, if any) outstanding before such event
and of which the denominator shall be the number of shares of Common Stock
outstanding after such event. Any adjustment made pursuant to this Section shall

                                      -5-
<PAGE>

become effective immediately after the record date for the determination of
stockholders entitled to receive such dividend or distribution and shall become
effective immediately after the effective date in the case of a subdivision,
combination or re-classification.

                  (b)      If the Maker, at any time while any portion of the
principal amount due under this Note is outstanding, shall issue evidences of
indebtedness, assets, rights, options or warrants to all holders of Common Stock
(and not to the Payee) entitling them to subscribe for or purchase shares of
Common Stock at a price per share less than the Conversion Price, then the
Conversion Price shall be multiplied by a fraction, of which the denominator
shall be the number of shares of the Common Stock (excluding treasury shares, if
any) outstanding on the record date for the determinations of stockholders
entitled to receive such evidences of indebtedness, assets, right, options or
warrants plus the number of additional shares of Common Stock offered for
subscription or purchase, and of which the numerator shall be the number of
shares of the Common Stock (excluding treasury shares, if any) outstanding on
such record date plus the number of shares which the aggregate offering price of
the total number of shares so offered would purchase at the Conversion Price.
Such adjustment shall be made whenever such evidences of indebtedness, assets,
rights, options or warrants are issued, and shall become effective immediately
after the record date for the determination of stockholders entitled to receive
such evidences of indebtedness, assets, rights, options or warrants. However,
upon the expiration of any such evidences of indebtedness, assets, right, option
or warrant to purchase shares of the Common Stock the issuance of which resulted
in an adjustment in the Conversion Price pursuant to this Section, if any such
evidences of indebtedness, assets, right, option or warrant shall expire and
shall not have been exercised, the Conversion Price shall immediately upon such
expiration be recomputed and effective immediately upon such expiration be
increased to the price which it would have been (but reflecting any other
adjustments in the Conversion Price made pursuant to the provisions of this
Section after the issuance of such rights or warrants) had the adjustment of the
Conversion Price made upon the issuance of such evidences of indebtedness,
assets, rights, options or warrants been made on the basis of offering for
subscription or purchase only that number of shares of the Common Stock actually
purchased upon the exercise of such evidences of indebtedness, assets, rights,
options or warrants actually exercised.

                  (c)      If the Maker, at any time while any portion of the
principal amount due under this Note is outstanding, shall distribute to all
holders of Common Stock (and not to the Payee) evidences of its indebtedness
convertible into or assets or rights or warrants to subscribe for or purchase
any security, then in each such case the Conversion Price shall be determined by
multiplying the Conversion Price in effect immediately prior to the record date
fixed for determination of stockholders entitled to receive such distribution by
a fraction of which the denominator shall be the Per Share Market Value
determined as of the record date mentioned above, and of which the numerator
shall be such Per Share Market Value on such record date less the then fair
market value at such record date of the portion of such assets or evidence of
indebtedness so distributed applicable to one outstanding share of the Common
Stock as determined by the Board of Directors in good faith. In either case the
adjustments shall be described in a statement provided to the Payee of the
portion of assets or evidences of indebtedness or rights or warrants so
distributed or such subscription rights applicable to one share of Common Stock.
Such adjustment shall be made whenever any such distribution is made and shall
become effective immediately after the record date mentioned above.

                                      -6-
<PAGE>

                  (d)      In case of any reclassification of the Common Stock
or any compulsory share exchange pursuant to which the Common Stock is converted
into other securities, cash or property, the Payee shall have the right
thereafter to, at its option, (A) convert the then outstanding principal amount,
together with all accrued but unpaid interest and any other amounts then owing
under this Note only into the shares of stock and other securities, cash and
property receivable upon or deemed to be held by holders of the Common Stock
following such reclassification or share exchange, and the Payee shall be
entitled upon such event to receive such amount of securities, cash or property
as the shares of the Common Stock into which the then outstanding principal
amount, together with all accrued but unpaid interest and any other amounts then
owing hereunder in respect of this Note could have been converted immediately
prior to such reclassification or share exchange would have been entitled or (B)
require the Maker to prepay the aggregate of its outstanding principal amount
under this Note, plus all interest accrued and other amounts due and payable
thereon, at a price determined and payable in accordance with Section 6. The
entire prepayment price shall be paid in cash. This provision shall similarly
apply to successive reclassifications or share exchanges.

                  (e)      No adjustments in the Conversion Price shall be
required if such adjustment is less than $0.01, provided that any adjustments
which by reason of this Section are not required to be made shall be carried
forward and taken into account in any subsequent adjustment. All calculations
under this Section 5 shall be made to the nearest cent or to the nearest 1/100th
of a share, as the case may be.

                  (f)      Whenever the Conversion Price is adjusted pursuant to
any of Section 5(a) - (d), the Maker shall promptly mail to the Payee a notice
setting forth the Conversion Price after such adjustment and setting forth a
brief statement of the facts requiting such adjustment.

                  (g)      If (A) the Maker shall declare a dividend (or any
other distribution) on the Common Stock; (B) the Maker shall declare a special
nonrecurring cash dividend on or a redemption of the Common Stock; (C) the Maker
shall authorize the granting to all holders of the Common Stock rights or
warrants to subscribe for or purchase any shares of capital stock of any class
or of any rights; (D) the approval of any stockholders of the Maker shall be
required in connection with any reclassification of the Common Stock, any
consolidation or merger to which the Maker is a party, any sale or transfer of
all or substantially all of the assets of the Maker, or any compulsory share
exchange whereby the Common Stock is converted into other securities, cash or
property; (E) the Maker shall authorize the voluntary or involuntary
dissolution, liquidation or winding up of the affairs of the Maker; then, in
each case, the Maker shall cause to be filed at each office or agency maintained
for the purpose of conversion of the any portion of the principal amount and
interest outstanding under this Note, and shall cause to be mailed to the Payee
at its last address as it shall appear upon the stock books of the Maker, at
least 20 calendar days prior to the applicable record or effective date
hereinafter specified, a notice stating (x) the date on which a record is to be
taken for the purpose of such dividend, distribution, redemption, rights or
warrants, or if a record is not to be taken, the date as of which the holders of
the Common Stock of record to be entitled to such dividend, distributions,
redemption, rights or warrants are to be determined or (y) the date on which
such reclassification, consolidation, merger, sale, transfer or share exchange
is expected to become effective or close, and the date as of which it is
expected that holders of the Common Stock of record shall be entitled to
exchange their shares of the Common Stock for securities, cash or other property
deliverable upon such reclassification, consolidation, merger, sale, transfer or

                                      -7-
<PAGE>

share exchange; provided, however, that the failure to mail such notice or any
defect therein or in the mailing thereof shall not affect the validity of the
corporate action required to be specified in such notice.

                  (h)      In case of any (1) merger or consolidation of the
Maker with or into another Person that would constitute a Change of Control
Transaction (as defined in Section 14), or (2) sale, directly or indirectly, by
the Maker of more than one-half of the assets of the Maker (on an as valued
basis) in one or a series of related transactions, or (3) tender or other offer
or exchange (whether by the Maker or another Person) pursuant to which holders
of Common Stock are permitted to tender or exchange their shares for other
securities, stock, cash or property of the Maker or another Person: then the
Payee shall have the right to (A) convert the then aggregate amount of principal
and interest outstanding under this Note into the shares of stock and other
securities, cash, and property receivable upon or deemed to be held by holders
of Common Stock following such merger, consolidation or sale, and the Payee
shall be entitled upon such event or series of related events to receive such
amount of securities, cash and property as the shares of Common Stock into which
such aggregate amount of principal and interest outstanding under this Note
could have been converted immediately prior to such merger, consolidation or
sale would have been entitled, (B) in the case of a merger or consolidation, (x)
require the surviving entity to issue shares of convertible convertible debt
with aggregate principal amount equal to the then aggregate amount of principal
outstanding under this Note, plus all accrued and unpaid interest and other
amounts owing thereon, which convertible debt shall have terms identical
(including with respect to conversion) to the terms of this Note and shall be
entitled to all of the rights and privileges of the Payee as set forth herein
and the agreements pursuant to which this Note was issued (including, without
limitation, as such rights relate to the acquisition, transferability,
registration and listing of such shares of stock other securities issuable upon
conversion thereof), and (y) simultaneously with the issuance of such
convertible debt, shall have the right to convert such debt only into shares of
stock and other securities, cash and property receivable upon or deemed to be
held by holders of Common Stock following such merger or consolidation, or (C)
in the event of an exchange or tender offer or other transaction contemplated by
clause (3) of this Section, tender or exchange the then outstanding aggregate
amount of principal and interest under this Note for such securities, stock,
cash and other property receivable upon or deemed to be held by holders of
Common Stock that have tendered or exchanged their shares of Common Stock
following such tender or exchange, and the Payee shall be entitled upon such
exchange or tender to receive such amount of securities, cash and property as
the shares of Common Stock into which the then outstanding aggregate amount of
principal and interest under this Note could have been converted (taking into
account all then accrued and unpaid dividends) immediately prior to such tender
or exchange. The terms of any such merger, sale, consolidation, tender or
exchange shall include such terms so as to continue to give the Payee the right
to receive the securities, cash and property set forth in this Section upon any
conversion or redemption following such event. This provision shall similarly
apply to successive such events.

                  (i)      So long as this Note is outstanding, if the Maker
shall issue any Common Stock except for the Excepted Issuances (as defined
below), prior to the complete conversion or payment of this Note, for a
consideration less than the Conversion Price that would be in effect at the time
of such issue, then, and thereafter successively upon each such issuance, the
Conversion Price shall be reduced to such other lower issue price. For purposes
of this adjustment, the issuance of any security or debt instrument of the Maker
carrying the right to convert such security or debt instrument into Common Stock

                                      -8-
<PAGE>

or of any warrant, right or option to purchase Common Stock shall result in an
adjustment to the Conversion Price upon the issuance of the above-described
security, debt instrument, warrant, right, or option and again upon the issuance
of shares of Common Stock upon exercise of such conversion or purchase rights if
such issuance is at a price lower than the then applicable Conversion Price. The
reduction of the Conversion Price described in this paragraph is in addition to
the other rights of the Payee described herein or in the Purchase Agreement.
"Excepted Issuances" shall mean any of the following issuances: (i) full or
partial consideration in connection with a strategic merger, acquisition,
consolidation or purchase of substantially all of the securities or assets of a
corporation or other entity which holders of such securities or debt are not at
any time granted registration rights, (ii) the Maker's issuance of securities in
the Maker's issuance of securities in connection with strategic license
agreements, the entering into or acquiring of material contracts in connection
with the Maker's business as currently being conducted, and other partnering
arrangements so long as such issuances are not for the purpose of raising
capital and are not issued for services, which holders of such securities or
debt are not at any time granted registration rights, (iii) the Maker's issuance
of Common Stock or the issuances or grants of options to purchase Common Stock
pursuant to stock incentive plans adopted by the Maker, (iv) as a result of the
exercise of this Note; (v) as a result of the exercise of warrants or conversion
of notes or preferred stock which are granted or issued pursuant prior to the
date of the issuance of this Note, (v) the payment of any interest on the Note
and liquidated damages, or damages pursuant to the Note or the Purchase
Agreement, and (vi) pursuant to rights as have been described in the SEC Reports
(as defined in the Purchase Agreement).

                  (j)      The Maker covenants that it will reserve and keep
available out of its authorized and unissued shares of Common Stock solely for
the purpose of issuance upon conversion of the outstanding aggregate amount of
principal and interest under this Note as herein provided, upon the conversion
of the outstanding amount of principal and interest under this Note. The Maker
covenants that all shares of Common Stock that shall be issuable pursuant to the
terms thereof shall, upon issuance, be duly authorized, validly issued and fully
paid, and nonassessable.

                  (k)      Upon a conversion hereunder the Maker shall not be
required to issue stock certificates representing fractions of shares of the
Common Stock, but may if otherwise permitted, make a cash payment in respect of
any final fraction of a share based on the Per Share Market Value at such time.
If the Maker elects not, or is unable, to make such a cash payment, the Payee
shall be entitled to receive, in lieu of the final fraction of a share, one
whole share of Common Stock.

                  (l)      The issuance of certificates for shares of the Common
Stock on conversion of the principal amount and interest outstanding under this
Note shall be made without charge to the Payee for any documentary stamp or
similar taxes that may be payable in respect of the issue or delivery of such
certificate.

         6.       Mandatory Prepayment Upon Triggering Events. Upon the
occurrence of a Triggering Event (as defined below), the Payee shall have the
right (in addition to all other rights it may have hereunder under any
Transaction Document or under applicable law), exercisable at the sole option of
the Payee, to require the Maker to prepay all or a portion of the outstanding
principal amount of this Note plus all accrued and unpaid interest thereon. Such
prepayment shall be due and payable within thirty (30) Trading Days of the date
on which the notice for the payment therefor is provided by the Payee.

                                      -9-
<PAGE>

         A "Triggering Event" means any one or more of the following events
(whatever the reason and whether it shall be voluntary or involuntary. or
effected by operation of law or pursuant to any judgment, decree or order of any
court. or any order, rule or regulation of any administrative or governmental
body):

                  (i)      any default in the payment of the principal of
interest on or other payments owing in respect of this Note, free of any claim
of subordination, as and when the same shall become due and payable (whether on
a Conversion Date, the Maturity Date, by acceleration or otherwise);

                  (ii)     the Maker shall fail for any reason to deliver
certificates or an Endorsement to the Payee prior to the sixtieth (60th) day
after a Conversion Date pursuant to and in accordance with Section 4(a);

                  (iii)    the failure of the Common Stock to be eligible for
trading on the OTC Bulletin Board or listed for trading on a Subsequent Market
or the suspension of the Common Stock from trading on the OTC Bulletin Board or
a Subsequent Market, in either case, for more than thirty (30) consecutive
calendar days;

                  (iv)     the Maker shall be a party to any Change of Control
Transaction or shall agree to sell or dispose of all or in excess of 33% of its
assets in one or more transactions (whether or not such sale would constitute a
Change of Control Transaction), or shall redeem or repurchase more than a de
minimis number of shares of Common Stock or other equity securities of the Maker
(other than redemptions of Shares);

                  (v)      the Maker or any of its subsidiaries shall commence
or there shall be commenced against the Maker or any such subsidiary a case
under any applicable bankruptcy or insolvency laws as now or hereafter in effect
or any successor thereto, or the Maker commences any other proceeding under any
reorganization, arrangement, adjustment of debt, relief of debtors, dissolution,
insolvency or liquidation or similar law of any jurisdiction whether now or
hereafter in effect relating to the Maker or any subsidiary thereof or there is
commenced against the Maker or any subsidiary thereof any such bankruptcy,
insolvency or other proceeding which remains undismissed for a period of 60
days; or the Maker or any subsidiary thereof is adjudicated insolvent or
bankrupt; or any order of relief or other order approving any such case or
proceeding is entered; or the Maker or any subsidiary thereof suffers any
appointment of any custodian or the like for it or any substantial part of its
property which continues undischarged or unstayed for a period of 60 days; or
the Maker or any subsidiary thereof shall by any act or failure to act indicate
its consent to, approval of or acquiescence in any of the foregoing; or any
corporate or other action is taken by the Maker or any subsidiary thereof for
the purpose of effecting any of the foregoing;

                  (vi)     the Maker shall fail to observe or perform any other
covenant, agreement or warranty contained in, or otherwise commit any breach of
(ii) this Note or (ii) the Purchase Agreement, and such failure or breach shall
not, if subject to the possibility of a cure by the Maker, have been remedied
within sixty (60) days after the date on which notice of such failure or breach
shall have been given;

                                      -10-
<PAGE>

         7.       No Waiver of Payee's Rights, etc. All payments of principal
and interest shall be made without setoff, deduction or counterclaim. No delay
or failure on the part of the Payee in exercising any of its options, powers or
rights, nor any partial or single exercise of its options, powers or rights
shall constitute a waiver thereof or of any other option, power or right, and no
waiver on the part of the Payee of any of its options, powers or rights shall
constitute a waiver of any other option, power or right. The Maker hereby waives
presentment of payment, protest, and notices or demands in connection with the
delivery, acceptance, performance, default or endorsement of this Note.
Acceptance by the Payee of less than the full amount due and payable hereunder
shall in no way limit the right of the Payee to require full payment of all sums
due and payable hereunder in accordance with the terms hereof.

         8.       Modifications. No term or provision contained herein may be
modified, amended or waived except by written agreement or consent signed by the
party to be bound thereby.

         9.       Cumulative Rights and Remedies; Usury. The rights and remedies
of the Payee expressed herein are cumulative and not exclusive of any rights and
remedies otherwise available. If it shall be found that any interest outstanding
hereunder shall violate applicable laws governing usury, the applicable rate of
interest outstanding hereunder shall be reduced to the maximum permitted rate of
interest under such law.

         10.      Collection Expenses. If this obligation is placed in the hands
of an attorney for collection after default, and provided the Payee prevails on
the merits in respect to its claim of default, the Maker shall pay (and shall
indemnify and hold harmless the Payee from and against), all reasonable
attorneys' fees and expenses incurred by the Payee in pursuing collection of
this Note.

         11.      Successors and Assigns. This Note shall be binding upon the
Maker and its successors and shall inure to the benefit of the Payee and its
successors and assigns. The term "Payee" as used herein, shall also include any
endorsee, assignee or other holder of this Note.

         12.      Lost or Stolen Promissory Note. If this Note is lost, stolen,
mutilated or otherwise destroyed, the Maker shall execute and deliver to the
Payee a new promissory note containing the same terms, and in the same form, as
this Note. In such event, the Maker may require the Payee to deliver to the
Maker an affidavit of lost instrument and customary indemnity in respect thereof
as a condition to the delivery of any such new promissory note.

         13.      Governing Law. This Note shall be governed by and construed
and enforced in accordance with the internal laws of the State of New Jersey
without regard to the principles of conflicts of law thereof. Each party hereby
irrevocably submits to the exclusive jurisdiction of the state and federal
courts sitting in the county of Bergen, State of New Jersey, for the
adjudication of any dispute hereunder or in connection herewith or with any
transaction contemplated hereby or discussed herein and hereby irrevocably
waives, and agrees not to assert in any suit, action or proceeding, any claim
that it is not personally subject to the jurisdiction of any such court, that
such suit, action or proceeding is improper. Nothing contained herein shall be
deemed to limit in any way any right to serve process in any manner permitted by
law.

                                      -11-
<PAGE>

         14.      Definitions. For the purposes hereof, the following terms
shall have the following meanings:

         "Business Day" means any day except Saturday, Sunday and any day which
shall be a legal holiday or a day on which banking institutions in the State of
New York or State of Utah are authorized or required by law or other government
action to close.

         "Change of Control Transaction" means the occurrence of any of (i) an
acquisition after the date hereof by an individual or legal entity or "group"
(as described in Rule 13d-5(b)(1) promulgated under the Exchange Act) of in
excess of 33% of the voting securities of the Maker, (ii) a replacement of more
than one-half of the members of the Maker's board of directors which is not
approved by those individuals who are members of the board of directors on the
date hereof in one or a series of related transactions, (iii) the merger of the
Maker with or into another entity, the direct or indirect consolidation or sale
of all or substantially all of the assets of the Maker in one or a series of
related transactions, unless following such transaction, the holders of the
Maker's securities continue to hold at least 66% of such securities following
such transaction or (iv) the execution by the Maker of an agreement to which the
Maker is a party or by which it is bound, providing for any of the events set
forth above in (i), (ii) or (iii).

         "Conversion Price" shall be 50% of the average of the three lowest Per
Share Market Values during the ten (10) Trading Days immediately preceding a
Conversion Date (subject to adjustment pursuant to Section 5 hereof).

         "Exchange Act" means the Securities Exchange Act of 1934, as amended.

         "Per Share Market Value" means on any particular date (a) the closing
bid price per share of Common Stock on such date on the OTC Bulletin Board or on
such Subsequent Market on which the shares of Common Stock are then listed or
quoted, or if there is no such price on such date, then the closing bid price on
the OTC Bulletin Board or on such Subsequent Market on the date nearest
preceding such date, or (b) if the shares of Common Stock are not then listed or
quoted on the OTC Bulletin Board or a Subsequent Market, the closing bid price
for a share of Common Stock in the over-the-counter market, as reported by the
National Quotation Bureau Incorporated or similar organization or agency
succeeding to its functions of reporting prices) at the close of business on
such date, or (c) if the shares of Common Stock are not then reported by the
National Quotation Bureau Incorporated (or similar organization or agency
succeeding to its functions of reporting prices), then the average of the "Pink
Sheet" quotes for the relevant conversion period, as determined in good faith by
the Payee.

         "Person" means a corporation, an association, a partnership, limited
liability company an organization, a business, an individual, a government or
political subdivision thereof or a governmental agency.

         "Purchase Agreement" means that certain Convertible Note Purchase
Agreement dated as of March 10, 2008 by and between Maker and Payee.

                                      -12-
<PAGE>

         "Securities Act" means the Securities Act of 1933, as amended.

         "Subsequent Market" means the New York Stock Exchange, American Stock
Exchange, Nasdaq SmallCap Market or Nasdaq National Market.

         "Trading Day" means (a) a day on which the shares of Common Stock are
traded on such Subsequent Market on which the shares of Common Stock are then
listed or quoted, or (b) if the shares of Common Stock are not listed on a
Subsequent Market, a day on which the shares of Common Stock are traded in the
over-the-counter market, as reported by the OTC Bulletin Board, or (c) if the
shares of Common Stock are not quoted on the OTC Bulletin Board, a day on which
the shares of Common Stock are quoted in the over-the-counter market as reported
by the National Quotation Bureau Incorporated (or any similar organization or
agency succeeding its functions of reporting prices); provided, however, that in
the event that the shares of Common Stock are not listed or quoted as set forth
in (a), (b) and (c) hereof, then Trading Day shall mean any day except Saturday,
Sunday and any day which shall be a legal holiday or a day on which banking
institutions in the State of New Jersey or State of Utah are authorized or
required by law or other government action to close.

         IN WITNESS WHEREOF, the Maker has caused this Convertible Promissory.
Note to be duly executed and delivered as of the date first set forth above.

                                       QUEST MINERALS & MINING CORP.

                                       By:_____________________________________
                                          Name:  Eugene Chiaramonte, Jr.
                                          Title: President

                                      -13-
<PAGE>

                                    EXHIBIT A

                              NOTICE OF CONVERSION

Dated:

         The undersigned hereby elects to convert the principal amount and
interest indicated below of the attached Convertible Promissory Note into shares
of common stock, $0.001 par value (the "Common Stock"), of Quest Minerals &
Mining Corp., according to the conditions hereof, as of the date written below.
No fee will be charged to the holder for any conversion.

Exchange calculations: ________________________________________________

Date to Effect Conversion: ____________________________________________

Principal Amount and Interest of
Secured Convertible Note to be Converted: _____________________________

Number of shares of Common Stock to be Issued: ________________________

Applicable Conversion Price:

Signature: __________________________________________

Name:________________________________________________

Address: ____________________________________________

<PAGE>
<TABLE>
<CAPTION>

                                    EXHIBIT B

                                  LOAN SCHEDULE

       Convertible Promissory Note Issued by Quest Minerals & Mining Corp.

                              Dated: March 11, 2008

                                    SCHEDULE
                                       OF
                      CONVERSIONS AND PAYMENTS OF PRINCIPAL

-----------------------  ------------------------------- -----------------------------------
  Date of Conversion            Amount of Conversion          Total Amount Due Subsequent
                                                                    To Conversion
-----------------------  ------------------------------- -----------------------------------
<S>                      <C>                             <C>

-----------------------  ------------------------------- -----------------------------------

-----------------------  ------------------------------- -----------------------------------

-----------------------  ------------------------------- -----------------------------------

-----------------------  ------------------------------- -----------------------------------

-----------------------  ------------------------------- -----------------------------------

-----------------------  ------------------------------- -----------------------------------

-----------------------  ------------------------------- -----------------------------------

-----------------------  ------------------------------- -----------------------------------

-----------------------  ------------------------------- -----------------------------------

</TABLE>

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