Document:

Exhibit 10.8 Feb 2006 Promissory Note

    Exhibit
      10.8

    
 

    SENIOR
      SECURED CONVERTIBLE PROMISSORY NOTE

     

    

     

    $[
      ],000.00        Palm
      Springs, California  

    

    February
      [ ], 2006

    

    
      	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 $ [ ],000.00, plus interest on the unpaid
                principal balance hereof at the rate of 10% per annum from February
                [ ],
                2006, 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 Ten Million Dollars
                ($10,000,000). 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 30
                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 $5.00 per share (with such share price being subject to
                adjustment for any stock split, stock dividend, or similar event).
                With
                thirty (30) days notice by the Maker, the holder of this Note will
                be
                entitled to redeem the principal amount of this Note into common
                stock of
                Maker at a conversion price of $2.50 per share on a date set by the
                Maker.
                

            

    

    

    
      	9.  	
              Collateral.
                The Company will execute a “Grant of Security Interest” in favor of Payee,
                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 the
                Company. The Company will also file a UCC-1 financing statement naming
                the
                holders of the Offering Notes as “secured parties” thereunder. The
                foregoing security interests will be senior to all material security
                interests in the Collateral except for a pre-existing $3,500,000
                Senior
                Note and a working line of credit where the aggregate of these two
                financial obligations do not exceed $5,000,000. 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. 

            

    

    

    
      	10.  	
              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:

            	
              Name:

            	 
	 	
              Address

            	 
	 	
              Address

            	 
	 	
              Telephone:

            	 
	 	
              Telefax:

            	 

    

     

    

      
        	
                If
                  to Maker:

              	 	
                Mr.
                  Haddon B. Libby

              
	 	 	
                Chief
                  Financial Officer

              
	 	 	
                US
                  DRY CLEANING CORPORATION

              
	 	 	
                125
                  E. Tahquitz Canyon, Ste. 203

              
	 	 	
                Palm
                  Springs, CA 92262

              
	 	
                Telephone:

              	
                (760)
                  323-3338 x226 

              
	 	
                Telefax:

              	
                (760)
                  323-3390

              

      

    

    

    
      	11.  	
              Assignment.
                Maker covenants that it shall not assign or transfer its obligation
                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.

            

    

    

    
      	12.  	
              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.

            

    

    

    
      	13.  	
              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.

            

    

    

    
      	14.  	
              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.

            

    

    

    
      	15.  	
              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.

            

    

    

    
      	16.  	
              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.

            

    

    

    
      	17.  	
              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 Palm Springs, California.

    

    

    US
      DRY CLEANING CORPORTATION, a Delaware corporation

     

    BY:

     

    

     

    _____________________________________

    Haddon
      B.
      Libby

    Chief
      Financial OfficerExhibit 10.9 Convertible Debt Agreement

    Exhibit
      10.9

    
 

    

    

     

    Haddon
      B. Libby

    Chief
      Financial Officer

    

    

    

    May
      4,
      2006

    

    

    Re: US
      DRY CLEANING CORPORATION (“The Company”)

    Senior
      Secured Convertible Promissory Note

    

    

    Dear
      Noteholder:

    

    Enclosed
      please find your interest payment for the quarter ending May 2, 2006. A number
      of noteholders have inquired if it would be possible to receive stock for the
      interest payment. As a result, the Company is offering to pay this quarterly
      interest payment in common stock at the rate of $1.60 per share (that is, for
      example, a noteholder entitled to receive $2,500 in cash would receive 1,563
      shares of stock). This is a 36% discount to the conversion price of the
      Company’s current $10Million convertible debt offering, which is taking place at
      $2.50 per share.

    

    The
      election to receive stock instead of cash is yours to make.
      If
      you desire to make this election,
      you
      must execute a copy of this letter acknowledging your desire to take
      stock
      and
      return the enclosed check in the self-addressed, stamped envelope enclosed
      herewith.

    

    It
      is the
      Company’s intention to file an SB-2 Registration Statement with the SEC by the
      end of the month in order to register all of the securities to be issued to
      noteholders. It is anticipated that the stock will being trading in
      approximately 60 days after the filing of the SB-2, assuming SEC
      approval.

    

    As
      you
      are aware, your Senior Secured Convertible Promissory Note (the “Note”) is
      convertible into common stock of the Company at a conversion price of $1.00
      per
      share at any time prior to the Maturity Date of August 2, 2006. In order to
      encourage early conversion prior to May 31, 2006 and to facilitate the
      registration of the shares pursuant to the SB-2, the Company is offering to
      convert your Note at $.95 per share. Thus, a holder of a $100,000 Note would
      receive 105,263 shares of common stock of USDCC. 

     

     

    
      
        
          125
            E TAHQUITZ CANYON/SUITE 203/PALM SPRINGS/CA 92262/PHONE 760-323-3338
            X226/FAX
            760-323-3390

          
            1801
              CENTURY PARK EAST/SUITE 1830/LOS ANGELES/CA 90067/PHONE 310-777-8889/FAX
              310-226-8553

          

        

      

      
        
        

        
          

        

      

      
        Page
          2

      

    

    

    

    IF
      YOU
      DESIRE TO TAKE ADVANTAGE OF THIS EARLY CONVERSION OFFER, PLEASE EXECUTE AND
      RETURN THE ENCLOSED ELECTION
      TO CONVERT
      FORM
      ENCLOSED HEREWITH, TOGETHER WITH YOUR ORIGINAL NOTE, IN THE SELF-ADDRESSED,
      STAMPED ENVELOPE.

    

     

    If
      you
      have any questions concerning the foregoing, feel free to contact
      me.

    

    

    Very
      truly yours,

     

    /s/
      Haddon B. Libby

    Haddon
      B.
      Libby

    Chief
      Financial Officer

    

    

    I/we
      elect to receive stock for my/our interest

    payment
      due May 2, 2006 pursuant to the terms

    set
      forth above.

    

    Print
      or type Name of Noteholder: ______________________________

    

    Signature:__________________________________________________

    

    Title
      (if corporation, partnership or trustee):
      _______________________

    

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        Page
          3

      

    

     

    ELECTION
      TO CONVERT

    

    I/we,
      ___________________________________________, the holder of a Senior Secured
      Convertible Promissory Note (the “Note”) dated August 2, 2005, issued by U.S.
      Dry Cleaning Corporation (“USDCC”) in the principal sum of
      $_________________________ elect to convert the Note pursuant to Paragraph
      8
      thereof into common stock of USDCC at the early conversion price of $.95 per
      share. The original Note is being tendered herewith for cancellation upon the
      issuance of the stock of USDCC to the undersigned.

    

    Dated:
      _____________, 2006

    

    Print
      or
      type Name of Noteholder: _____________________________________

    

    Signature:
      ________________________________________________________

    

    Title
      (if
      corporation, partnership or trustee):
      _______________________________

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