Document:

hybridexh4_9ii.htm

    
      

    

     

    Exhibit
4.9(ii)

    

    FORM OF
SECURED CONVERTIBLE PROMISSORY NOTE

    

    THIS NOTE
HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933
AS AMENDED. THIS NOTE MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT
TO (I) AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES
ACT OF 1993, AS AMENDED, OR (ii) AN EXEMPTION FROM REGISTRATION
UNDER SAID ACT WHERE THE HOLDER HAS FURNISHED TO THE
COMPANY AN OPINION OF ITS COUNSEL, .F SUCH OPINION SHALL BE SATISFACTORY
TO THE COMPANY, THAT AN EXEMPTION FROM REGISTRATION UNDER SUCH ACT IS
AVAILABLE.

     

    AMOUNT:    
$100000

     

    8%
SECURED CONVERTIBLE PROMISSORY NOTE

     

    FOR VALUE
RECEIVED, the undersigned, Hybrid Dynamics Corp.. Inc a Nevada
corporation (the ‘Payor’), having its executive office and principal place of
business
at 52 66 Iowa Aye, Paterson NJ.. hereby promises to pay to the order of the
Mr. David
Shan Lee the “HOLDER”, having an address at 5 Colonel Conklin Dr. Stony
Point, NY
10980, 180 days from the date signed herein (the “Maturity Date”) at the
Payee’s
address set forth hereinabove or, at such other place as the Payee shall
hereafter
specify in writing, the principal sum of S100.000 in such coin or currency of
the
United States of America as at the time shall be legal tender for the payment of
public
aid private debts unless the HOLDER at his/her option elects to convert the said
promissory
note into the common equity of the “PAYOR

    

    1.
a   INTEREST AND PAYMENT.

     

    1.1    
The unpaid principal amount hereof shall bear simple interest from the
date
hereof at the rate of 8% per annum until the Maturity Date (or until any such
earlier date of
payment if this Note is prepaid as hereinafter provided).

     

    1.2    
Interest shall be payable in full in cash or additional common shares of the
Payor on
the Maturity Date.

    

    1.b  
NO EFFECTIVE REGISTRATION.

     

    Notwithstanding
anything to the contrary herein, the Company shall be prohibited from
exercising
its right to prepay any of the Obhgatior~s in shares of Common Stock on the
applicable
Repayment Date if at any time from the Payment Date until the time at which
the
Holder receives such shares there fails to exist an effective registration
statement or an Event
of Default hereunder exists or occurs, unless otheiwise waived in writing by
the
Holder in whole or in part at the Hoiders option.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    3.5    
ADJUSTMENT PROVISIONS. The Conversion Price and number and kind of
shares or other securities to be issued upon conversion determined pursuant
to Sections 3.1 and 3.2, shall be subject to adjustment from time to
time upon
the happening of certain events while this conversion right remains outstanding,
as follows:

     

    A.  
RECLASSIFICATION, ETC. If the Borrower at any time shall, by
reclassification or otherwise, change the Common Stock into the same or a
different
number of securities of any class or classes, this Note, as to the unpaid
Principal Amount and accrued interest thereon, shall thereafter be deemed
to
evidence the right to purchase an adjusted number of such securities and kind
of
securities as would have been issuable as the result of such change with
respect
to the Common Stock immediately prior to such reclassification or other
change.

     

    B.  
STOCK SPUTS, COMBINATIONS AND DIVIDENDS. If the shares of Common
Stock are subdivided or combined into a greater or smaller number of
shares of
Common Stock, or if a dividend is paid on the Common Stock in shares
of Common
Stock, the Fixed Conversion Price shall be proportionately reduced in
case of
subdivision of shares or stock dividend or proportionately increased in
the case
of combination of shares, in each such case by the ratio which the total
number of shares of Common Stock outstanding immediately after such event
bears to
the total number of shares of Common Stock outstanding immediately prior to
such event.

     

    3.6    
RESERVATION OF SHARES. Except as otherwise provided in the Securities
Agreement, during the period the conversion right exists, the Borrower
will reserve from its authorized and unissued Common Stock a sufficient
number of
shares to provide for the issuance of Common Stock upon the full conversion
of this Note. The Borrower represents that upon issuance, such shares
will be
duly and validly issued, fully paid and non-assessable. The Borrower
agrees
that its issuance of this Note shall constitute full authority to its
officers,
agents, and transfer agents who are charged with the duty of executing
and
issuing stock certificates to execute and issue the necessary certificates
for
shares of Common Stock upon the conversion of this Note.

    

    4.    
COLLATERAL. See EXHIBIT A.

    

    5.    
EVENTS OF DEFAULT. The occurrence of each or any of the following conditions,
events or acts shall constitute an ‘Event of Default:”

    

    5.1    
The dissolution of the Payor; or

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    5.2    
The Payor’s insolvency, assignment for the benefit of creditors, application for
or appointment of a receiver, filing of a voluntary or involuntary petition
under any provision
of the Federal Bankruptcy Code or amendments thereto or any other federal
or state
statute affording relief to debtors; or if there shall be commenced against the
Payor any
such proceeding or filed against the Payor any such application or petition
which
proceeding, application or petition is not dismissed or withdrawn within thirty
(30) days of
commencement or filing as the case may be; or

     

    5.3    
The failure by the Payor to make any payment of any amount of principal
on, or
accrued interest under, this Note, as and when the same shall become due and
payable;
or

     

    5.4    
The commencement of a proceeding to foreclose the security interest or
lien in
any property or assets to satisfy the security interest or lien therein of any
secured
creditor of the Payor whose debt is in excess of $100,000.00; or

     

    5.5    
The entry of a final judgment for the payment of money in excess of $100,000.00
by a court of competent jurisdiction against the Payor, which judgment the
Payor
shall not discharge (or provide for such discharge) in accordance with its terms
within
thirty (30) days of the date of entry thereof, or procure a stay of execution
thereof within
thirty (30) days from the date of entry thereof and, with such thirty (30) day
period,
or such longer period during which execution of such judgment shall have been
stayed,
appeal therefrom and cause the execution thereof to be stayed during such
appeal:
then, in any such event and at any time thereafter, while such Event of Default
is
continuing, the indebtedness evidenced by this Note shall immediately become due
and
payable, both as to principal and interest, without presentment, demand, protest
or other
notice of any kind, all of which are hereby expressly waived, notwithstanding
anything
contained herein to the contrary.

    
6.     SUITS
FOR ENFORCEMENT AND REMEDIES. If any one or more Events of Default
shall occur and be continuing, the holder of this Note may proceed to protect
and
enforce such holder’s rights either by suit in equity or by action at law, or
both, whether
for the specific performance of any covenant, condition or agreement contained
in this
Note or in any agreement or document referred to herein or in aid of the
exercise of any
power granted in this Note or in any agreement or document referred to herein,
or
proceed to enforce the payment of this Note or to enforce any other legal or
equitable right of
the holder of this Note. No right or remedy herein or in any other agreement or
instrument
conferred upon the holder of this Note is intended to be exclusive of any
other
right or remedy, and each and every such right or remedy shall be cumulative and
shall be
in addition to every other right and remedy given hereunder or now or hereafter
existing
at law or in equity or by statute or otherwise.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    7.    
FEES, WAIVERS, OTHER.

     

    7.1    
The holder of this Note shalt institute any action to enforce the collection
of any
amount of principal of and/or interest on this Note and there shalt be any
amount of
pnncipal of and/or interest on this Note owed to the holder then there shall be
immediately
due and payable from the Payor in addition to the then unpaid sum of this
Note, all
reasonable costs and expenses incurred by the Payee in connection therewith
including,
without limitation, reasonable attorneys’ fees and disbursements.

     

    7.2    
No forbearance, indulgence, delay or failure to exercise any right or
remedy
with respect to this Note shalt operate as a waiver, nor as an acquiescence in
any
default nor shall any single or partial exercise of any right or remedy preclude
any other or
further exercise thereof or the exercise of any other right or
remedy.

     

    7.3    
This Note may not be modified or discharged except by a writing duly
executed
by the Payor and the Payee.

     

    7.4    
The Payor hereby expressly waives demand and presentment for payment
notice of nonpayment notice of dishonor protest notice of protest bringing of
suit, and
diligence in taking any action to collect amounts called for hereunder, and
shall be
directly and primarily liable for the payment of all sums owing and to be owing
herein
regardless of and without any notice diligence act or omission with respect to
the
collection of any amount called for hereunder or in connection with any right
lien interest
or property at any and all times which the Payee had or is existing as security
for any
amount called for hereunder.

     

    7.5    
The Payor shall bear all of its expenses, inciuding, attorneys’ fees incurred
in
connection with the preparation of this Note.

    

    8.    
MISCELLANEOUS.

     

    8.1    
The headings of the various paragraphs of this Note are for convenience
of
reference only and shall in no way modify any of the terms or provisions of this
Note.

     

    8.2    
All notices required or permitted to be given hereunder shafl be in writing
and shall
be deemed to have been duly given when personally delivered or sent by
registered
or certified mail return receipt requested postage prepaid to the address of
the
intended recipient set forth in the preamble to this Note or at such other
address as the
intended recipient shall have hereafter given to the other party hereto pursuant
to the
provisions hereof.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    ASSIGNMENT

     

    FOR VALUE
RECEIVED, the Secured Party sells, assigns and transfers to Mr. David Shan Lee,
its successors and assigns with recourse, aH right, title and interest in, to
and under the foregoing agreement and in and to the Collateral therein
described, with authority to take either in its own name or in the name of the
Secured Party, but for its own benefit, all such proceedings, legal or
equitable, as the Secured Party might have taken but for this assignment The
Secured Party warrants that the foregoing agreement represents a valid security
agreement as provided under the laws Of the State of New Jersey.

     

     

    /s/ MARK KLEIN
12-15-2008

    Mark
Klein, President, Hybrid Dynamics Inc.

    

    Collateral
VIN #’s

    A –
1D9SA21537N489001

    B –
1D9SS21355M489001ex_10-34.htm

    
      

      

    

    EXHIBIT 10.34

     

     

    
      SENIOR
SECURED PROMISSORY NOTE

      
      

       

      
        	
                $300,000  

              	
                Orange County,
      California

              
	 	
                December 24,
      2008

              

      

       

       

      FOR VALUE
RECEIVED, the undersigned,Location Based Technologies, Inc., a Nevada
corporation  (referred to herein as the “Borrower”), hereby
unconditionally promises to pay to the order of Steve Finley, its endorsees,
successors and assigns (the “Holder”), in lawful money of the United States, PO
Box 1296, Rancho Santa Fe, CA 92067 or at such other address as the Lender may
from time to time designate, the principal sum of Three Thousand Dollars
($300,000).

       

      1.      Terms of
Repayment.  Principal of and interest on this Note shall be due
three months from date of issuance or upon a minuim of One million five
hundred dollars ($1,500,000) net to the company is raised.

       

              
a.      Upon
the execution and delivery of this Note, the Holder shall disburse to the
Borrower the sum of $300,000, which is the principal amount. All remaining
amounts outstanding under this Note shall mature and become due and payable in
full on March 24, 2009 (the "Maturity Date"), subject to any
prior payment required by this Note, including, without limitation.

       

               b.     The
Lender shall receive 100,000 shares of the Company's common retricted
stock.  The Holder shall receive the stock certificate within seven
(7) business days of signing.

      

      2.      Interest
Rate.  This Note shall accrue interest on the principal for a
period of three (3) months from the date of this Note at a rate of twelve
percent (12%) per annum (the “Interest Rate”).  Interest shall be
calculated on the basis of a 365-day year for the actual number of days
elapsed.    All payments hereunder are to be applied first
to the payment of accrued interest, and the remaining balance to the payment of
principal.

      

      3.      Events of
Default.  If any of the events of default specified in this
Section shall occur, Holder may, so long as such condition declare the entire
principal and unpaid accrued interest hereon immediately due and payable, by
notice in writing to the Company, this Note and any other obligations of the
Borrower to the Lender, shall become due immediately, without demand or
notice:

       

               a.    
 Default in the payment of the principal or unpaid accrued interest of this
Note when due and payable; or

       

               b.     
Filing of
bankruptcy proceedings involving the Company.

       

      4.      Successors and Assigns:
Assignment.  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.  Nothing in this Note, express or implied, is intended to
confer upon any party, other than the parties hereto and their successors and
assigns, any rights, remedies, obligations or liabilities under or by reason of
this Note, except as expressly provided herein.  The Company may not
assign this Note or any of the rights or obligations referenced herein without
the prior written consent of Holder.

      

      5.      Prepayment.  This
Note may be prepaid in whole or in part, at any time, without the prior written
consent of the Lender.

       

      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

      

       

      6.      Governing
Law.  This agreement is entered into in Orange County,
California, and shall be construed in accordance with and governed by the laws
of the State of California applicable to contracts made and to be performed in
California.  Further, the parties agree that venue shall rest solely
and exclusively in Orange County, California, and any challenge or objection
thereto is hereby waived.

       

      7.      Notices.  For
the purpose of this Agreement, notices and all other communications provided for
in this Agreement shall be in writing and shall be deemed to have been duly
given as of the date if delivered in person or by telecopy, on the next business
day, if sent by a nationally recognized overnight courier service, and on the
second business day if mailed by registered mail, return receipt requested,
postage prepaid, and if addressed to the Company then at its principal place of
business, or if addressed to the Holder, then the last known address on file
with the Company.

      

      
        
          
            	
                    If
      to the Company:

                  	
                    Location
      Based Technologies, Inc.

                  
	 
      	
                    4999
      E. La Palma Avenue

                  
	 
      	
                    Anaheim,
      CA 92807

                  
	 
      	
                    Facsimile
      Number:  (714) 200-0287

                  
	 
      	
                    E-mail:  joseph@pocketfinder.com

                  
	 
      	 
      
	
                    If
      to Lender:

                  	
                    Steve
      Finley

                  
	 
      	
                    PO
      Box 1296

                  
	
                     

                  	Rancho
      Sante Fe, CA 92067

          

        

      

       

      or, as to
each party, at such other address as shall be designated by such party in a
written notice to the other parties.

       

      8.      Heading;
References.  The headings have been inserted for convenience
only and are not to be considered when construing the provisions of this
Agreement.

      

      9.      Entire
Agreement.  This Agreement constitutes the entire understanding
between the parties hereto in respect of the terms of this Note by the Holder
and by the Company, superseding all negotiations, prior discussions, prior
written, implied and oral agreements, preliminary agreements and understandings
with Company or any of its officers, employees or agents.

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

      

      

      IN WITNESS WHEREOF, the
undersigned has executed this Senior Secured Promissory Note as of the date
first set forth above.

       

       

      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              	The
      “Holder”	 	 	 	 
	 	 	 	 	 
	
                                      /s/
      Steve Finley

                                    	 	 	
                                       

                                    	 
	
                                      Name:
      Steve Finley

                                      Address: PO Box 1296, Rancho Santa Fe, CA 92067

                                    	 	 	
                                       

                                    	 

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

       

       

      
        
          
            
              
                
                  
                    	The
      “Borrower”: Location Based Technolgies, Inc.	 	 	 	 
	 	 	 	 	 
	
                            /s/
      David M. Morse 

                          	 	 	
                            /s/
      Joseph F. Scalisi

                          	 
	
                            David
      M. Morse 

                            CEO
      & Co-President 

                          	 	 	
                            Joseph
      F. Scalisi

                            CDO & Co-President

                          	 

                  

                

              

            

          

        

      

    

     

     

    
      3

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