Document:

Exhibit 10.6 Watley Agreement

Exhibit
    10.6
    CONSULTING
      AGREEMENT

    BETWEEN

    US
      DRY CLEANING CORPORATION

    AND

    THE
      WATLEY GROUP, LLC

    

    
      	
              THIS
                AGREEMENT is
                entered into as of the 12th day of July, 2005, by and among the following
                parties (hereinafter collectively referred to as the "Parties");
                

            
	 
	
              The
                Watley Group, LLC, a California limited liability company
                

            
	 
	
              AND

            
	 	 
	
              US
                Dry Cleaning Corporation, a Nevada corporation

            
	 	 
	
              RECITALS

            
	 	 
	
              US
                Dry Cleaning (hereinafter referred to as the "USDC" or the "Company"),
                a
                Nevada corporation, directly or through one or more of its affiliates
                would like to enter into a business combination transaction (the
                Transaction") with Publico, a publicly tradable company (following
                the
                closing of the Transaction), (Publico and USDC are referred to herein
                as
                the "Public Company") and, thereafter, to list the Public Company's
                shares
                of common stock (the "Common Stock") on a nationally recognized stock
                exchange or to request a market-maker to commence quotations of the
                Common
                Stock on an electronic exchange medium. The company plans to acquire
                other
                dry cleaning businesses as well as grow;

            
	 	 
	
              AND

            
	 	 
	Whereas,
              Watley is a management consulting and advisory firm with management
              consulting expertise and has relationships and contacts that will assist
              the Company in achieving its business plan and financing needs;
              
	 
	
              AGREEMENT

            
	 	 
	NOW
              THEREFORE, for good and valuable consideration, the Parties, intending
              legally to be bound, hereby agree as follows 
	 
	
              SERVICES

            
	 	 
	
              1.

            	
              During
                the term of any consulting agreement hereof, Watley shall act as
                a
                management consultant to USDC or the Public Company, as relevant.
                

            
	 	 
	
              2.
                

            	
              During
                the term hereof, Watley shall act as the exclusive financial consultant
                to
                USDC and, following the closing of the Transaction, the Public Company.
                

            
	 	
               

            
	
              3.

            	
              If
                Requested by USDC ("USDC" or the "Company") or the Public Company,
                in
                anticipation of the closing of the Transaction and for the benefit
                of USDC
                and the Public Company, Watley will conduct a two-day strategic planning
                seminar with USDC's senior management, directors, and consultants.
                Thereafter, but possibly prior to the effective date of this Agreement,
                Watley will provide various management consulting, strategic plan,
                and
                prospective operations services. 

            
	 	 
	
              4.

            	
              If
                requested by USDC or the Public Company, Watley shall provide advice
                and
                assistance in the preparation and periodic updating of a strategic
                plan
                designed to optimize such entity's business and value for its
                stockholders, which strategic plan shall be suitable for presentation
                to
                financial and securities analysts and to such entity's current
                stockholders, as well as to prospective investors. 

            
	 	 
	
              5.
                

            	
              In
                connection with the strategic plan, Watley shall provide advice and
                assistance recommend alternative organizational structures and assignments
                of responsibilities. 

            
	 	 
	
              6.
                

            	
              If
                requested by USDC, Watley shall use commercially reasonable efforts
                to
                assist USDC in its efforts to identify prospective investors to obtain
                a
                bridge capital in the form of senior secured convertible notes of
                up to
                $3,000,000 on terms and conditions reasonably acceptable to, and
                subject
                to the approval of, the Board of Directors of USDC.

            
	 	 
	
              7.

            	
              If
                requested by USDC or the Public Company, as relevant, Watley shall
                use
                commercially reasonable efforts to assist such entity in its efforts
                to
                identify prospective investors to obtain up to an additional $10,000,000
                of debt or equity financing in one or more tranches, on terms and
                conditions reasonably acceptable to, and subject to the approval
                of, the
                Board of Directors of such entity. Watley shall analyze and quantify
                alternative structures for equity, debt, or quasi-equity financing
                that
                are designed to meet 'such entity's growth plan in accordance its
                strategic plan. 

            
	 	 
	
              8.

            	
              If
                requested by USDC or the Public Company, as relevant, Watley shall
                provide
                advice and assistance to such entity regarding negotiations with
                lenders
                or leasing companies for the placement of any commercial debt,
                subordinated debt, mezzanine debt, other debt facility, or leasing
                facility. 

            
	 	 
	
              9.

            	
              If
                requested by USDC or the Public Company, as relevant, Watley shall
                assist
                such entity's management, attorneys, and accountants with the preparation
                of the various documents to be utilized with respect to USDC's or
                the
                Public Company's debt or equity capital raising or leasing activities.
                

            
	 	 
	
              10

            	
              .
                If requested by USDC or the Public Company, as relevant, Watley shall
                provide advice and assistance to such entity in respect of all aspects
                of
                the merger or acquisition process, from identifying such entity's
                business
                requirements and financial abilities, to identifying prospective
                targets
                and assisting with the due diligence investigations thereof, assisting
                with the structure of the proposed transaction, and providing advice
                regarding various alternatives for financing the proposed
                transaction.

            
	 	 
	
              11

            	
              .
                If requested by USDC or the Public Company, as relevant, Watley shall
                provide advice and recommendations to such entity regarding alternative
                composition structures and functions of such entity's board of directors,
                including designing codes of conduct and ethics, trading policies,
                and
                rules to implement good corporate governance. 

            
	 	 
	
              12.

            	
              If
                requested by USDC or the Public Company, as relevant, Watley shall
                provide
                advice regarding adequate D&O insurance to protect and indemnify the
                officers, directors, and such entity. 

            
	 	 
	
              13

            	
              .
                If requested by the Company, Watley shall assist the company in selecting
                appropriate investor relations' specialists to compliment any existing
                investor relations' firm that may be retained by the company.
                

            
	 	 
	
              14.

            	
              If
                requested by the Company, Watley will advise and assist the Company
                on
                such other issues as the Company may request from time to time during
                the
                period of this agreement. 

            
	 	 
	
              15.

            	
              If
                requested by USDC or the Public Company, Watley shall help recruit
                directors to serve as non-executive members of the Board or as a
                non-executive Director of either or both of USDC or the Public Company.
                Such appointments will be subject to (i) the approval of the Board
                of
                Directors of USDC or the Public Company, as relevant, and (ii) such
                entity
                obtaining a D&O insurance policy, reasonably acceptable to the
                directors, of not less than $2,000,000 of coverage, unless waived
                by the
                director. 

            
	 	 
	 	 
	
              FEES
                AND PAYMENTS

            
	 	 
	
              1.

            	
              The
                initial term of this engagement will be for two years. For the initial
                two-month period of the engagement, the Company will pay a
                management-consulting fee equal to be agreed. At any time, the company
                may
                elect to pay the consultant's management consulting fees only, with
                shares
                of common stock issued pursuant to an effective S-8 registration
                statement. If the company requests, Watley shall assist the company
                in the
                preparation of an appropriate S-8 registration statement. The number
                of
                shares to be issued to the consultant for any monthly fee shall be
                determined by dividing the average closing price of the stock for
                five
                days preceding the issuance of the shares into the amount of the
                fee. In
                addition, USDC shall issue to Watley or its designated nominees or
                affiliates, 2,300,000 shares of common in USDC for overall consulting
                services during the first 24 months.

            
	 	 
	
              2.

            	
              USDC
                or the Public Company, as relevant, shall pay to Watley a fee for
                the
                services described in Section 6 & 7, above, in cash at the closing of
                such an equity, debt, or quasi-equity financing. Such fees shall
                be
                equivalent to ten percent (10%) of the first $10,000,000 of aggregate
                gross proceeds of such financing and seven and one-half percent (7
                1/2%)
                of any amount of aggregate gross proceeds of such financing in excess
                of
                $10,000,000. This fee applies to any equity, debt, or quasi-equity
                financing transactions that close during the term of this Agreement
                or
                within twelve months thereafter if the party making equity, debt,
                or
                quasi-equity investment was introduced to USDC or the Public Company,
                as
                relevant, during the term hereof. 

            
	 	 
	
              3.

            	
              USDC
                or the Public Company, as relevant, will pay to Watley a fee for
                the
                services described in Section 8, above, in cash at the closing of
                such a
                commercial loan or lease transaction. Such fees shall be equivalent
                to
                five percent (5%) of the first $10,000,000 of borrowings or lease
                transactions in favor of USDC or the Public Company, as relevant,
                and two
                and one-half percent (2 1/2%) of any amount of borrowings or lease
                transactions in excess of $10,000,000. This fee applies to any borrowings
                or lease transactions that close during the term of this Agreement
                or
                within twelve months thereafter if the party making such loan or
                lease
                transaction was introduced to USDC or the Public Company, as relevant,
                during the term hereof. If warrants or other equity or quasi-equity
                structures are granted or issued in connection with such a borrowing
                or
                lease transaction lenders or lessors, USDC or the Public Company,
                as
                relevant, will pay a fee to Watley equivalent to ten percent (10%)
                of the
                total amount of funds to be received by USDC or the Public Company
                upon
                the exercise of the warrants and for the warrants, equity or quasi-equity,
                on an as received by USDC or the Public Company as relevant, basis.
                

            
	 	 
	
              4.

            	
              USDC
                or the Public Company, as relevant, will pay to Watley a fee for
                the
                services described in Section 10, above, in cash at the closing of
                such a
                merger or acquisition. Such fees shall be equivalent to six percent
                (6%)
                of the first $5,000,000 of enterprise value of such merger or acquisition
                and three percent (3%) of any amount of enterprise value in excess
                of
                $5,000,000. 70% of the fees for M&A services will be paid to Robert
                Lee in accordance with his management contract. 

            
	 	 
	
              1.
                

            	
              As
                of the closing of the Transaction and in connection with such closing,
                USDC will cause the Public Company to assume all of USDC's obligations
                hereunder. This Section 8 shall not act as a novation of USDC's
                obligations under this Agreement, such that notwithstanding such
                assumption, USDC shall remain liable, jointly and severally, therefor
                and,
                upon the request of Watley, shall execute such documents as Watley
                may
                reasonably request such that USDC shall become an absolute guarantor
                of
                any obligations hereunder incurred by the Public Company.
                

            
	 	 
	
              DISPUTES
                AND CONTROVERSIES

            
	 	 
	
              The
                Parties agree that all disputes, claims, and other matters in controversy
                arising out of or relating to this Agreement, or the performance
                or breach
                thereof, shall be submitted to binding arbitration in accordance
                with the
                provisions and procedures of this paragraph; provided, however, that
                the
                arbitrator shall not be empowered to award punitive, exemplary or
                consequential damages. 

            
	 	 
	
              Any
                arbitration shall be held in Los Angeles, California in accordance
                with
                applicable law except as provided to the contrary hereunder. Such
                arbitration shall be held before and decided by a single neutral
                arbitrator. The single neutral arbitrator shall be selected from
                a list of
                retired judges of the Court of Los Angeles by a process mutually
                agreed
                upon by the parties. 

            
	 	 
	
              The
                parties shall mutually agree upon the date and location of the arbitration
                subject to the availability of the arbitrator, except that the arbitrator
                shall give not less than (30) days notice of the hearing unless the
                parties mutually agree to shorten time for notice. 

            
	 	 
	
              The
                parties shall be entitled to undertake discovery in the arbitration
                in
                accordance with California law. In conjunction with these processes,
                the
                parties shall be entitled to request and obtain production of documents
                in
                discovery in the arbitration in accordance with the same rights,
                remedies
                and procedures, and shall be subject to all of the same duties,
                liabilities and obligations as if the subject matter of the arbitration
                were pending in a civil action before a Superior Court of the State
                of
                California. The parties hereby agree that any discovery talked hereunder
                shall be permitted without first securing leave of the arbitrator
                and
                shall be kept to a reasonable minimum. 

            
	 	 
	The
              decision of the arbitrator appointed pursuant to this agreement shall
              be
              final and binding.
	 	 
	
              The
                arbitration proceedings themselves and any discovery taken in connection
                with the arbitration, shall be kept strictly confidential and shall
                not be
                disclosed to any third party. The arbitrator may award to any prevailing
                party, as determined by the arbitrator, part or all of the prevailing
                party's costs and fees. "Cost and fees" means all reasonable pre-award
                expenses of the arbitration, including the arbitrators fees,
                administrative fees, travel expenses, out-of-pocket expenses such
                as
                photocopy, telecopy and telephone charges, witness fees and attorneys'
                fees. 

            
	 	 
	
              CONFIDENTIALITY

            
	 	 
	
              Watley
                acknowledges and agrees that it will receive and become aware of
                certain
                information which is proprietary to the Company, including, without
                limitation, prices, costs, personnel, knowledge, data and techniques,
                other non-public information concerning the business or finances
                of the
                Company, and other information the disclosure of which might harm
                or
                destroy the competitive advantage of the Company (all of the foregoing
                shall hereinafter be referred to as the "Proprietary Information").
                Notwithstanding the foregoing, the Proprietary Information shall
                not
                include any information which is generally known or becomes part
                of the
                public domain through no fault of Watley, or is required to be disclosed
                in the context of any administrative or judicial proceeding. Watley
                agrees
                that it will not, directly or indirectly, disclose any Proprietary
                Information to third parties, copy or use any Proprietary Information,
                or
                publish any Proprietary Information, except for the purpose of fulfilling
                its obligations to the Company. 

            
	 	 
	
              INDEMNIFICATION

            
	 	
               

            
	
              Except
                as may be prohibited by applicable law, the Company shall indemnify
                and
                hold harmless Watley including each member, Executive Committee member
                and
                officer thereof, their respective partners, officers, directors,
                shareholders and trustees and the partners, officers, directors,
                shareholders and trustees of such parties and in the discretion of
                the
                Executive Committee, may indemnify and hold harmless any Affiliate
                thereof, and any employee or agent of, or adviser to, each member,
                Executive Committee member and officer, and their respective Affiliates
                (such Persons, to the extent they are required to be indemnified
                hereunder
                or are provided indemnity hereunder by the Executive Committee, are
                herein
                collectively referred to as "Indemnified Parties") from and against
                any
                and all losses, claims, demands, costs, damages, liabilities, expenses
                of
                and nature (including reasonable attorneys' fees and expenses), judgments,
                fines, settlements and other amounts (collectively, the "Liabilities")
                arising from, or related or incidental to, any and all claims, demands,
                actions, suits or proceedings, civil, criminal, administrative or
                investigative, in which such Indemnified Party may be involved, or
                threatened to be involved, as a party or otherwise, and arising out
                of or
                related to this agreement or the services to be provided by Watley
                under
                this Agreement without limitation, liabilities under 

            
	 	 
	
              California
                law if such Indemnified Party acted in good faith and in a manner
                it
                reasonably believed to be in, or not opposed to, the interests office
                the
                Company, and, with respect to any criminal proceeding, did not in
                good
                faith believe its conduct was unlawful; provided, however, that such
                Indemnified Party shall not be indemnified against any such Liabilities
                and the Indemnified Party shall repay all amounts previously advanced
                by
                the Company pursuant hereto, that were caused by such Indemnified.
                Party's
                actual fraud, gross negligence or wanton or willful misconduct, unless
                the
                court in which such proceeding was brought shall determine the Indemnified
                Party is fairly and reasonably entitled to indemnify in which case
                such
                indemnification shall be provided only to the extent permitted by
                such
                court. Notwithstanding the foregoing, to the extent that an Indemnified
                Party has been successful on the merits or otherwise in defense of
                any
                action, suit or proceeding referred to in this paragraph, or in connection
                with any appeal therein, or in defense of any claim, issue or matter
                therein, the Company shall indemnify such Indemnified Party against
                the
                expenses, including, without limitation, reasonable attorneys' and
                accountants' fees and expenses, incurred by such Indemnified Party
                in
                connection therewith. The termination of any pending or threatened
                action,
                suit or proceeding by judgment, order settlement, conviction, or
                upon a
                plea of nolo contendere or its equivalent shall not, in and of itself,
                create a presumption or otherwise constitute evidence that the Indemnified
                Party did not satisfy standards indemnification set forth in this
                paragraph. 

            
	 	 
	
              Liabilities
                incurred by any Indemnified Party in defending any pending or threatened
                claim, demand, action, suite or proceeding shall, from time to time,
                be
                paid by the Company in advance of the final disposition or settlement
                of
                such claim, demand, action, suit or proceeding upon receipt of an
                undertaking by or on behalf of the Indemnified Party to repay such
                amounts
                (or a proportionate share of such amounts determined in accordance
                with
                clause (c) of this paragraph if applicable) if it is ultimately determined
                that The Indemnified Party is not to be indemnified by The Company
                as
                provided in this agreement.

            
	 	 
	
              If
                for any reason (other than the gross negligence or the wanton or
                willful
                misconduct or bed fish office Indemnified Party), the foregoing
                indemnification is unavailable to such Indemnified Party, then the
                Company
                shall contribute to the amount paid or payable by such Indemnified
                Party
                as a result of such Liabilities in such proportion as is appropriate
                to
                reflect not only the relative benefits received by the Company, on
                the one
                hand, and such Indemnified Party on the other hand, but also the
                relative
                fault of the Company and such Indemnified Party as well as any relevant
                equitable considerations. 

            
	 	 
	
              The
                indemnification (or contribution) and advancement of amounts provided
                by
                this agreement shall not be deemed exclusive of, but shall be in
                addition
                to. any other rights to which those persons seeking indemnification
                (or
                contribution) or advancement of amounts may otherwise be entitled
                and
                shall continue as to any Indemnified Party notwithstanding the dissolution
                or other cessation to exist of such Indemnified Party or the withdrawal,
                adjudication of bankruptcy or insolvency of such Indemnified Party,
                such
                Indemnified Party's no longer serving m the capacity entitling it
                to
                indemnification under the provisions of this agreement. or the termination
                of the Company. 

            
	 	 
	
              The
                advancement, indemnity and contribution obligations of the Company
                under
                this Agreement shall be in addition to any obligation which the Company
                may otherwise have, shall be binding upon and inure to the benefit
                of any
                successors assigns, heirs and personal representatives of the Company
                and
                each of the Indemnified Parties and shall not be deemed to create
                any
                rights for the benefit of any other party. The provisions of this
                paragraph shall survive any termination of this Agreement.
                

            
	 	 
	This
              Agreement shall constitute the whole and entire agreement of the parties
              hereto with respect to the matters set forth herein and shall not be
              modified or amended in any respect.
	 	 
	This
              Agreement is governed by and to be construed in accordance with the
              laws
              of the State of California without regard to conflict of laws principles.
              

    

    

    

    
      	
              So
                Agreed,

            	 	 
	 	 	 
	
              For
                The Watley Group, LLC 

            	 	
              For
                US Dry Cleaning Corporation

            
	/s/
              Anthony Bryan	 	/s/
              Michael E. Drace
	Anthony
              Bryan	 	Michael
              E.
              Drace
	 	 	CEOExhibit 10.7 Secured Convertible Note

Exhibit
    10.7
    SENIOR
      SECURED CONVERTIBLE PROMISSORY NOTE

     

    

     

    
      	
              $                        

            	
              Los
                Angeles, California

            

    

    

    August
      _______, 2005

    

    

      
        	 	
                1.

              	
                Obligation.
                  For value received, US DRY CLEANING CORPORATION, a Delaware corporation
                  ("Maker"), hereby unconditionally promises to pay to
                  ________________________ (“Payee”),
                  at such place as Payee may from time to time designate in writing
                  to
                  Maker, the principal sum of $___________, plus interest on the
                  unpaid
                  principal balance hereof at the rate of 10% per annum from August
                  _______,
                  2005, payable quarterly in arrears, in immediately available funds
                  to the
                  date of which is twelve months from the date hereof (the “Maturity Date”)
                  unless earlier redeemed or converted. This Note is one of a number
                  of
                  Senior Secured Convertible Promissory Notes (collectively, the
“Offering
                  Notes”) having substantially identical terms and conditions, in an
                  aggregate principal amount not to exceed Three Million Five Hundred
                  Thousand Dollars ($3,500,000). The
                  Offering Notes are issued as senior secured obligations of Maker
                  and rank
                  senior to all of Maker’s other obligations, whether now existing or
                  hereinafter incurred or created.

              

      

      

      
        	 	
                2.

              	
                Payment
                  of Principal and Interest.
                  Unless this Note is converted in accordance with the provisions
                  of Section
                  8 hereof, principal shall be payable in lawful money of the United
                  States
                  in immediately available funds, without deduction or offset, on
                  the
                  Maturity Date; provided,
                  however,
                  that the Maturity Date may be extended by written notice, made
                  by the
                  holders of no less than 50.1% in interest of the principal amount
                  outstanding under all Offering Notes then outstanding (a “Qualifying
                  Percentage”).
                  Interest shall be calculated on the basis of a 360 day year consisting
                  of
                  twelve 30-day months.

              

      

      

      
        	 	
                3.

              	
                Unpaid
                  Interest Bears Interest.
                  If
                  interest is not paid when due, it shall bear like interest as principal,
                  but such unpaid interest so compounded shall not exceed an amount
                  equal to
                  simple interest on the unpaid principal at the maximum rate permitted
                  to
                  be charged under any applicable laws, rules and regulations limiting
                  interest rates.

              

      

      

      
        	 	
                4.

              	
                Late
                  Charge.
                  If
                  any installment of principal or interest is not received within
                  10 days
                  after the same becomes due and payable, with notice to the Maker
                  and at
                  the option of Payee, Maker shall pay to Payee a "late charge" in
                  the
                  amount of 5% of any such delinquent amount, to cover the extra
                  expense
                  incurred in handling delinquent
                  payments.

              

      

      

      
        	 	
                5.

              	
                Purpose.
                  Maker hereby represents and warrants that the proceeds of the loan
                  evidenced by this Note shall be used solely for business
                  purposes.

              

      

      

      
        	 	
                6.

              	
                Redemption.
                  Maker shall have the right to redeem the Note at any time, without
                  penalty
                  or premium, upon 45 days’ written notice to Payee. Maker shall pay all
                  accrued interest along with the entire principal in immediately
                  available
                  funds at the date of redemption specified in such notice. The Note
                  may be
                  converted to Common Stock at any time prior to the date of redemption
                  in
                  accordance with Section 8.

              

      

      

      
        	 	
                7.

              	
                Limitation
                  on Interest Charged.
                  Notwithstanding any provision herein to the contrary, including
                  the
                  provisions of Paragraph 3, the interest rate charged to and to
                  be paid by
                  Maker hereunder shall not exceed the maximum rate permitted to
                  be charged
                  under any applicable laws, rules and regulations limiting interest
                  rates,
                  it being the express intent of Payee and Maker that this Paragraph
                  7 shall
                  operate as a "usury savings clause" under California
                  law.

              

      

      

      
        	 	
                8.

              	
                Convertibility
                  of Note.
                  The holder of this Note will have the unilateral right exercisable
                  at any
                  time prior to the Maturity Date of the date of redemption to convert
                  the
                  principal amount of this Note into common stock of Maker at a conversion
                  price of $1.00 per share (with such share price being subject to
                  adjustment for any stock split, stock dividend, or similar event)
                  .

              

      

      

      
        	 	
                9

              	
                Reverse
                  Merger.
                  Upon the consummation of a Reverse Merger, this Note shall automatically
                  be assumed by the Public Company surviving such merger and shall
                  be
                  convertible into that number of shares of common stock of the Public
                  Company that the holder of this Note would have received had it
                  converted
                  this Note into shares of Maker’s common stock immediately prior to the
                  closing of the Reverse Merger. A “Reverse Merger” shall mean the closing
                  of a merger of Maker with and into a Public Company (as defined
                  below)
                  pursuant to which the stockholders of Maker receive shares of common
                  stock
                  of such Public Company in exchange for their shares of common stock
                  of
                  Maker (a “Reverse Merger”). A “Public Company” is any company the common
                  stock of which is traded on any national securities exchange or
                  quoted on
                  the Nasdaq stock market, the OTC Bulletin Board or the so-called
“pink
                  sheets.”

              

      

      

      
        	 	
                10.

              	
                Collateral.
                  The Company will, upon the acquisition of each Designated Subsidiary
                  (as
                  defined below), cause each such Designated Subsidiary to execute
                  a “Grant
                  of Security Interest” in favor of Martin J. Brill, as agent for all of the
                  holders of Offering Notes, pursuant to which the Offering Notes
                  will
                  become secured by substantially all of the tangible and intangible
                  personal and real property assets (the “Collateral”) of each such
                  Designated Subsidiary. The Company will also cause each Designated
                  Subsidiary to file a UCC-1 financing statement in the appropriate
                  office
                  of such Designated Subsidiary’s jurisdiction of incorporation describing
                  the Collateral and naming the holders of the Offering Notes as
“secured
                  parties” thereunder. The “Designated Subsidiaries” are the first two dry
                  cleaning operating entities to be acquired by the Company shortly
                  after
                  the closing of the offering placing the Offering Notes, namely,
                  Coachella
                  Valley Retail, LLC and Steam Press Holdings, Inc. (its operating
                  conducted
                  through its wholly-owned subsidiary Enivel, Inc.).
                  The foregoing security interests will be senior to all material
                  security
                  interests in the Collateral. Payee may not take any action with
                  respect to
                  the Collateral without the prior approval of the holders of a Qualifying
                  Percentage. Once this Note has been paid in full, all of the foregoing
                  security interests will be released with respect to the holder
                  hereof.

              

      

      

      
        	 	
                11.

              	
                Notices.
                  Notices provided for herein may be given by delivery personally
                  or by
                  sending them by registered or by certified mail, with postage charged
                  prepaid, to the following mailing addresses, or to any other mailing
                  address of which written notice is given, and notices shall be
                  deemed
                  given upon actual receipt
                  thereof:

              

      

     

    

      
        	
                If
                  to Payee:

              	
                 

              	                    
	 	
                 

              	
                                    

              
	 	 	                    
	 	
                Telephone: 

              	
                             

              
	 	
                Telefax:

              	
                                    

              

      

      

       

      
        	
                If
                  to Maker:

              	
                 

              	Mr.
                Michael E. Drace, CEO
	 	
                 

              	
                US
                  DRY CLEANING CORPORATION

              
	 	
                 

              	
                35-325
                  Date Palm Drive Ste 211

              
	 	
                 

              	
                Cathedral
                  City CA 92234

              
	 	
                Telephone:

              	
                (760)
                  324-7311 

              
	 	
                Telefax:

              	
                (760)
                  324-7345

              

      

    

    

     

    

      
        	 	
                12.

              	
                Assignment.
                  Maker covenants that, except as provided for in Section 9, it shall
                  not
                  assign or transfer its obligations under this Note without prior
                  written
                  consent of Payee, which consent shall not be unreasonably withheld.
                  Maker
                  hereby agrees that Payee may assign its rights under this Note
                  effective
                  only upon notice to the Maker and the surrender of the Note for
                  issuance
                  of a substitute Note in the name of the transferee. No transfer
                  shall be
                  effective until surrender and the entry of the transferee’s name on the
                  books of the Maker.

              

      

      

      
        	 	
                13.

              	
                Default.
                  A
                  default under the Note shall exist if one or more of the following
                  events
                  occur (“Events of Default”): (i) any default by Maker in the payment of
                  any installment when due hereunder or in the performance of Maker's
                  obligations under this Note or any other instrument securing repayment
                  of
                  this Note, (ii) a breach of any representation or warranty contained
                  in
                  this Note or any other instrument securing repayment of this Note,
                  (iii) a
                  filing of any petition by or against Maker in any court, whether
                  or not
                  pursuant to any statute of the United States or of any state, in
                  any
                  bankruptcy, reorganization, composition, extension, arrangement
                  or
                  insolvency proceedings, and Maker shall thereafter be adjudicated
                  bankrupt, or such petition be approved by the court, or the court
                  assumes
                  jurisdiction of the subject matter, and such proceedings not be
                  dismissed
                  within 90 days after the institution of the same, or (iv) an assignment
                  by
                  Maker for the benefit of its creditors. Upon an Event of Default,
                  Payee
                  shall be entitled to all remedies available at law or equity and
                  may
                  protect and enforce its rights hereunder by suit in equity or action
                  at
                  law. Holder may also, upon written notice to Maker, declare the
                  entire
                  principal balance of this Note, together with all accrued interest
                  required to be paid immediately due and payable if Maker does not
                  cure
                  said default within 15 days of receipt of such acceleration
                  notice.

              

      

      

      
        	 	
                14.

              	
                Binding
                  on Heirs, Successors and Assigns.
                  Subject to the restrictions on assignment and transfer contained
                  in
                  Paragraph 12, this Note shall be binding on and inure to the benefit
                  of
                  the legal representatives, heirs, successors and assigns of Payee
                  and
                  Maker.

              

      

      

      
        	 	
                15.

              	
                Governing
                  Law; Venue.
                  This Note shall be governed by and construed in accordance with
                  the
                  substantive and procedural laws of the State of California. This
                  Note is
                  entered into and is to be enforced in Los Angeles County, California,
                  and
                  accordingly the only appropriate venue for a dispute under this
                  Note is in
                  the Municipal or Superior Court of California with venue in the
                  County of
                  Los Angeles.

              

      

      

      
        	 	
                16.

              	
                Amendments. Any
                  term of this Note may be amended or waived with the written consent
                  of
                  Maker and the holders of no less than a Qualifying Percentage,
                  as provided
                  in this Note. Payee acknowledges that because this Note may be
                  amended
                  with the consent of a Qualifying Percentage, Payee’s rights hereunder
                  (including, without limitation, Payee’s rights to receive principal and
                  interest as due) may be amended and waived without Payee’s
                  consent.

              

      

      

      
        	 	
                17.

              	
                Partial
                  Invalidity.
                  If
                  any provision of this Note is held to be unenforceable for any
                  reason, it
                  shall be adjusted rather than voided, if possible, to achieve the
                  intent
                  of the parties to the extent possible. In any event, all other
                  provisions
                  of this Note shall be deemed valid and enforceable to the extent
                  possible.

              

      

      

      
        	 	
                18.

              	
                Ranking
                  of Notes.
                  All of the Offering Notes shall rank pari
                  passu
                  with all other Offering Notes in right of payment and priority
                  of liens
                  and security interests, regardless of the order of filing of any
                  UCC-1
                  financing statements.

              

      

    

    IN
      WITNESS WHEREOF, Maker has executed this Note as of the date first above written
      at Honolulu, Hawaii.

    

    

    US
      DRY CLEANING CORPORTATION, a Delaware corporation

     

    BY:

     

    

     

    _____________________________________

    Michael
      E. Drace

    CEO

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