Document:

Form
      of Note

     

    THE
      SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE BEEN ACQUIRED FOR INVESTMENT
      AND
      HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
      "ACT"). SUCH SECURITIES MAY NOT BE SOLD OR TRANSFERRED IN THE ABSENCE OF SUCH
      REGISTRATION UNLESS THE TRANSFER IS IN ACCORDANCE WITH RULE 144 OR A SIMILAR
      RULE AS THEN IN EFFECT UNDER THE ACT OR UNLESS THE CORPORATION RECEIVES AN
      OPINION OF COUNSEL REASONABLY ACCEPTABLE TO IT STATING THAT SUCH SALE OR
      TRANSFER IS EXEMPT FROM THE REGISTRATION AND PROSPECTUS DELIVERY REQUIREMENTS
      OF
      THE ACT. COPIES OF THE AGREEMENT COVERING THE PURCHASE OF THESE SECURITIES
      AND
      RESTRICTING THEIR TRANSFER MAY BE OBTAINED AT NO COST BY WRITTEN REQUEST MADE
      BY
      THE HOLDER OF RECORD OF THIS CERTIFICATE TO THE SECRETARY OF THE CORPORATION
      AT
      THE PRINCIPAL EXECUTIVE OFFICES OF THE CORPORATION.

     

    Convertible
      Subordinated Promissory Note

    
      	$_____________________	 	
              [DATE]

            

    

           

    Los
      Angeles, California 

     

    For
      value
      received, TECHNOCONCEPTS INC., a Colorado corporation (the "Company"), promises
      to pay to the undersigned (the "Holder"), the principal sum of the amount
      written above, together with interest from the date of this Note on the unpaid
      principal balance as provided in Section 2 below. This Note is subject to the
      following terms and conditions.

     

    1.
      Maturity 

     

    Subject
      to Section 3, the principal and all accrued interest under this Note shall
      be
      due and payable upon demand by the Holder at any time after ___________, 20___
      (the "Maturity Date"). Notwithstanding the foregoing, the entire unpaid
      principal sum of this Note, together with all accrued interest thereon, shall
      become immediately due and payable upon the occurrence of an Event of Default
      (as hereinafter defined).

     

    2.
      Interest

     

    (a)
      Interest Rate

     

    The
      outstanding principal will bear interest at the rate of eight (8%) percent
      per
      annum.

     

    (b)
      Interest Payments

     

    Interest
      on the outstanding principal shall be payable at the rate set forth above and
      shall be payable at such time as the outstanding principal amount hereof is
      otherwise due and payable. Interest shall be computed on the basis of a three
      hundred sixty (360)-day year and actual days elapsed.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (c)
      Reduction of Interest

     

    If
      at any
      time, the rate of interest, together with all amounts which constitute interest
      and which are reserved, charged or taken by the Holder as compensation for
      fees,
      services or expenses incidental to the making, negotiating or collection of
      any
      advance evidenced hereby, shall be deemed by any competent court of law,
      governmental agency or tribunal to exceed the maximum of rate of interest
      permitted to be charged by the Holder to the Company, then, during such time
      as
      such rate of interest would be deemed excessive, that portion of each sum paid
      attributable to that portion of such interest rate that exceeds the maximum
      rate
      of interest so permitted shall be deemed a voluntary prepayment of
      principal.

     

    3.
      Conversion

     

    (a)
      Investment by the Holder

     

    At
      the
      option of the Holder, the entire principal amount of and accrued interest on
      this Note shall be converted into shares of the Company's equity securities
      (the
      "Equity Securities") issued and sold at the closing of the Company's next equity
      financing in a single transaction or a series of related transactions yielding
      gross proceeds to the Company of at least $5 million in the aggregate (including
      amounts converted under this Note and other similar convertible promissory
      notes) (the "Next Equity Financing"). The number of shares of Equity Securities
      to be issued upon such conversion shall be equal to the quotient obtained by
      dividing (i) the entire principal amount of this Note plus (if applicable)
      accrued interest by (ii) the price per share of the Equity Securities, rounded
      to the nearest whole share, and the issuance of such shares upon such conversion
      shall be upon the terms and subject to the conditions applicable to the Next
      Equity Financing.

     

    (b)
      Mechanics and Effect of Conversion

     

    No
      fractional shares of the Company's capital stock will be issued upon conversion
      of this Note. In lieu of any fractional share to which the Holder would
      otherwise be entitled, the Company will pay to the Holder in cash the amount
      of
      the unconverted principal and interest balance of this Note that would otherwise
      be converted into such fractional share. Upon conversion of this Note pursuant
      to this Section 3, the Holder shall surrender this Note, duly endorsed, at
      the
      principal offices of the Company or any transfer agent of the Company. At its
      expense, the Company will, as soon as practicable thereafter, issue and deliver
      to such Holder, at such principal office, a certificate or certificates for
      the
      number of shares to which such Holder is entitled upon such conversion, together
      with any other securities and property to which the Holder is entitled upon
      such
      conversion under the terms of this Note, including a check payable to the Holder
      for any cash amounts payable as described herein. Upon conversion of this Note,
      the Company will be forever released from all of its obligations and liabilities
      under this Note with regard to that portion of the principal amount and accrued
      interest being converted including without limitation the obligation to pay
      such
      portion of the principal amount and accrued interest.

     

    (c)
      Payment of Interest 

     

    Upon
      conversion of the principal amount of this Note into Equity Securities or Common
      Stock, any interest accrued on this Note that is not by reason of this Section
      3
      hereof simultaneously converted into Equity Securities or Common Stock shall
      be
      immediately paid to the Holder.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    4.
      Payment 

     

    All
      payments shall be made in lawful money of the United States of America at such
      place as the Holder hereof may from time to time designate in writing to the
      Company. Payment shall be credited first to the accrued interest then due and
      payable and the remainder applied to principal. At any time following the
      determination of the terms of the next Equity Financing, the Company shall
      have
      the right to prepay this Note, in whole or in part, prior to the Maturity Date
      without penalty; provided that the Holder have the right to convert as set
      forth
      in Section 3(a) for a period of ten days following receipt of notice of such
      prepayment.

     

    5.
      Events of Default 

     

    The
      occurrence of any of the following shall constitute an "Event of Default"
      hereunder:

     

    (a)
      Failure to Pay

     

    The
      Company shall fail to pay (i) any principal payment on the due date hereunder
      or
      (ii) any interest or other payment required pursuant to the terms hereof. on
      the
      date due and such payment shall not have been made within twenty (20) days
      of
      Company's receipt of Holder's written notice to the Company of such failure
      to
      pay; or

     

    (b)
      Breaches of Covenants

     

    The
      Company shall fail to observe or perform any covenant, obligation, condition
      or
      agreement contained herein (other than those covenants specified in Section
      5(a)
      of this Note) and (i) such failure shall continue for twenty (20) days, or
      (ii)
      if such failure is not curable within such twenty (20) day period, but is
      reasonably capable of cure within 180 days, either (A) such failure shall
      continue for 180 days or (B) Company shall not have commenced a cure in a manner
      reasonably satisfactory to Holder within the initial 45 day period;
      or

     

    (c)
      Voluntary Bankruptcy or Insolvency Proceedings

     

    The
      Company shall (i) apply for or consent to the appointment of a receiver,
      trustee, liquidator or custodian of itself or of all or a substantial part
      of
      its property, (ii) be unable, or admit in writing its inability, to pay its
      debts generally as they mature, (iii) make a general assignment for the benefit
      of its or any of its creditors, (iv) be dissolved or liquidated in full or
      in
      part, (v) become insolvent (as such term may be defined or interpreted pursuant
      to any applicable statute), (vi) commence a voluntary case or other proceeding
      seeking liquidation, reorganization or other relief with respect to itself
      or
      its debts pursuant to any bankruptcy, insolvency or other similar law now or
      hereafter in effect or consent to any such relief or to the appointment of
      or
      taking possession of its property by any official in an involuntary case or
      other proceeding commenced against it, or (vii) take any action for the purpose
      of
      effecting any of the foregoing; or

     

    (d)
      Involuntary Bankruptcy or Insolvency Proceedings 

     

    Proceedings
      for the appointment of a receiver, trustee, liquidator or custodian of the
      Company or of all or a substantial part of the property thereof, or an
      involuntary case or other proceedings seeking liquidation, reorganization or
      other relief with respect to the Company or the debts thereof pursuant to any
      bankruptcy, insolvency or other similar law now or hereafter in effect shall
      be
      commenced and an order for relief entered or such proceeding shall not be
      dismissed or discharged within 180 days of commencement.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    6.
      Rights of Holder upon Default

     

    Upon
      the
      occurrence or existence of any Event of Default and at any time thereafter
      during the continuance of such Event of Default, Holder may, by written notice
      to the Company, declare all outstanding obligations payable by the Company
      hereunder to be immediately due and payable without presentment, demand, protest
      or any other notice of any kind, all of which are hereby expressly waived.
      In
      addition to the foregoing remedies, upon the occurrence or existence of any
      Event of Default, Holder may exercise any other right, power or
      remedy
      granted to it hereunder or pursuant to applicable law. The Company agrees to
      pay
      all taxes levied or assessed upon the outstanding principal against any holder
      of this Note and to pay all reasonable costs, including attorneys' fees, costs
      relating to the appraisal and/or valuation of assets and all other costs and
      expenses incurred in the collection, protection, defense, preservation, or
      enforcement of this Note or any endorsement of this Note or in any litigation
      arising out of the transactions of which this Note or any endorsement of this
      Note is a part.

     

    7.
      Transfer, Successors and Assigns 

     

    The
      terms
      and conditions of this Note shall inure to the benefit of and be binding upon
      the respective successors and assigns of the parties. Notwithstanding the
      foregoing, the Holder may not assign, pledge, or otherwise transfer this Note
      without the prior written consent of the Company, except for transfers to
      affiliates of the Holder. Subject to the preceding sentence, this Note may
      be
      transferred only upon surrender of the original Note for registration of
      transfer, duly endorsed, or accompanied by a duly executed written instrument
      of
      transfer in form satisfactory to the Holder. Thereupon, a new note for the
      same
      principal amount and interest will be issued to, and registered in the name
      of,
      the transferee. Interest and principal are payable only
      to
      the registered holder of this Note. Neither this Note nor any of the rights,
      interests or obligations hereunder may be assigned, by operation of law or
      otherwise, in whole or in part, by the Company without the prior written consent
      of Holder except in connection with an assignment in whole to a successor
      corporation to the Company, provided that such successor corporation acquires
      all or substantially all of the Company's property and assets and provided
      further that none of the Holder's rights hereunder are impaired.

     

    8.
      Governing Law 

     

    This
      Note
      and all acts and transactions pursuant hereto and the rights and obligations
      of
      the parties hereto shall be governed, construed and interpreted in accordance
      with the laws of the State of California, without giving effect to principles
      of
      conflicts of law.

     

    9.
      Notices 

     

    Any
      notice required or permitted by this Note shall be in writing and shall be
      deemed sufficient upon delivery, when delivered personally or by a
      nationally-recognized delivery service (such as Federal Express or UPS), or
      five
      (5) days after being deposited in the U.S. mail, as certified or registered
      mail, with postage prepaid, addressed to the party to be notified at such
      party's address as set forth below or as subsequently modified by written
      notice.

     

    10.
      Amendments and Waivers 

     

    Any
      term
      of this Note may be amended or waived only with the written consent of the
      Company and holders of in excess of 50% of the principal amount of notes issued
      on about the date of the Note, provided that all such notes are amended, waived
      or modified in a like manner. Any amendment or waiver effected in accordance
      with this Section 10 shall be binding upon the Company, the Holder and each
      transferee of the Note.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    11.
      Shareholders, Officers and Directors Not Liable 

     

    In
      no
      event shall any shareholder, officer or director of the Company be liable for
      any amounts due or payable pursuant to this Note.

     

    12.
      Subordination 

     

    This
      Note
      shall be subject to the forms of subordination agreement requested from time
      to
      time by holders of Senior Indebtedness (as defined below), and the Holder agrees
      to enter into such forms of subordination agreement upon request of such holders
      of Senior Indebtedness and be bound by such agreements. "Senior Indebtedness"
      as
      used herein shall mean the principal of (and premium, if any) and unpaid
      interest on, indebtedness of the Company, or with respect to which the Company
      is a guarantor, investors or to banks, insurance companies, lease financing
      institutions or other lending institutions or business units of such
      institutions regularly and primarily engaged in the business of lending money,
      which is for money borrowed (or purchase or lease of equipment in the case
      of
      lease financing) by the Company, and which is approved by the Board of Directors
      of the Company, whether or not secured, and whether or not previously incurred
      or incurred in the future.

     

    13.
      Representations and Warranties of Holder and Transfer
      Restrictions 

     

    Holder
      hereby represents and warrants to the Company with respect to the purchase
      of
      this Note and any Equity Securities of the Company issued upon conversion of
      (or
      with respect to) this Note (the "Note Shares"):

     

    (a)
      Binding Obligation

     

    The
      Holder has full legal capacity, power and authority to execute and deliver
      this
      Note and to perform its obligations hereunder. This Note is a valid and binding
      obligation of the Holder, enforceable in accordance with its terms, except
      as
      limited by bankruptcy, insolvency or other laws of general application relating
      to or affecting the enforcement of creditors' rights generally and general
      principles of equity.

     

    (b)
      Investment and Accredited Investor

     

    The
      Holder understands that the investment in the Note and the Note Shares is a
      speculative investment, and represents that it is aware of the business affairs
      and financial condition of the Company, and has acquired sufficient information
      about the Company to reach an informed and knowledgeable decision to acquire
      the
      Note, and that it is purchasing the Note for investment for its own account
      only
      and not with a view to, or for resale in connection with, any "distribution"
      within the meaning of the Securities Act of 1933, as amended (the "Securities
      Act") or applicable state securities laws. Holder further represents that it
      understands that the Note and the Note Shares have not been registered under
      the
      Securities Act or applicable state securities laws by reason of specific
      exemptions therefrom, which exemptions depend upon, among other things, the
      bona
      fide nature of the Holder's investment intent as expressed herein. The Holder
      acknowledges and understands that the Note and the Note Shares must be held
      indefinitely unless subsequently registered under the Securities Act and
      qualified under applicable state securities laws or unless exemptions from
      such
      registration and qualification requirements are available, and that the Company
      is under no obligation to register or qualify the Note or the Note Shares.
      The
      Holder is an accredited investor as such term is defined in Rule 501 of
      Regulation D promulgated pursuant to the Securities Act.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (c)
      Access to Data 

     

    The
      Holder acknowledges that it has had an opportunity to discuss the Company's
      business, management and financial affairs with its officers and directors.
      The
      Holder understands that such discussions as well as any written information
      issued by the Company were intended to describe the aspects of the Company's
      business and prospects which it believes to be material but were not necessarily
      a thorough or exhaustive description.

     

    (d)
      Restrictions on Transferability 

     

    The
      Note
      and the Note Shares shall not be sold, assigned, transferred or pledged except
      upon the conditions specified in this Section 13(d), which conditions are
      intended to ensure compliance with the provisions of the Securities Act. Each
      Investor will cause any proposed purchaser, assignee, transferee, or pledgee
      of
      the Note and the Note Shares held by the Investor to agree to take and hold
      such
      securities subject to the provisions and upon the conditions specified in this
      Section 13(d). Prior to any proposed sale, assignment, transfer or pledge of
      this Note or the Note Shares (collectively the "Restricted Securities"), unless
      there is in effect a registration statement under the Securities Act covering
      the proposed transfer, the Holder shall give written notice to the Company
      of
      the Holder's intention to effect such transfer, sale, assignment or pledge.
      Each
      such notice shall describe the manner and circumstances of the proposed
      transfer, sale, assignment or pledge in sufficient detail, and shall be
      accomplished at the Holder's expense by either (i) an unqualified written
      opinion of legal counsel who shall be, and whose legal opinion shall be,
      reasonably satisfactory to the Company, addressed to the Company, to the effect
      that the proposed transfer of the Restricted Securities may be effected without
      registration under the Securities Act, or (ii) a "no action" letter from the
      Securities and Exchange Commission (the "Commission") to the effect that the
      transfer of such securities without registration will not result in a
      recommendation by the staff of the Commission that action be taken with respect
      thereto, whereupon the Holder of such Restricted Securities shall be entitled
      to
      transfer such Restricted Securities in accordance with the terms of the notice
      delivered by the Holder to the Company. Each certificate evidencing the
      Restricted Securities transferred as above provided shall bear, except if such
      transfer is made pursuant to the Commission's Rule 144, an appropriate
      restrictive legend, except that such certificate shall not bear such restrictive
      legend if, in the opinion of counsel for the Holder and the Company, such legend
      is not required in order to establish compliance with any provisions of the
      Securities Act.

     

    14.
      Treatment of Note 

     

    To
      the
      extent permitted by generally accepted accounting principles, the Company will
      treat, account and report the Note as debt and not equity for accounting
      purposes and with respect to any returns filed with federal, state or local
      tax
      authorities. 

     

     

    [SIGNATURE
      PAGE FOLLOWS]

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    IN
      WITNESS WHEREOF, the Company has caused this Note to be issued as of the date
      first written above. 

     

    COMPANY:
      

    

    TechnoConcepts
      Inc.

    

    

    By:
      ______________________________________     

    Antonio
      Turgeon, Chairman & CEO

    

    

    

    AGREED
      TO
      AND ACCEPTED: 

    

    HOLDER:
      

    

    By:
      ______________________________________        

    Name:

    Title:Unassociated Document

    FIRST
      AMENDMENT TO NOTE

    

    This
      FIRST AMENDMENT TO NOTE (the “Amendment”) is dated effective as of February
 ,
      2007, by
      and
      between TechnoConcepts, Inc. (the “Company”) and undersigned Note Holder (the
“Holder”) of the Promissory Note of the Company (the “Note”) pursuant to the
      Note Purchase Agreement between the parties, dated     
      (the “Agreement”).

     

    Capitalized
      terms used in this Amendment have the meanings given such terms in the Note
      and
      the Holder’s Agreement, as amended hereby, except as provided otherwise
      herein.

    

    The
      Company has requested that the Holder’s Note be amended as set forth below. In
      consideration of the mutual covenants and agreements set forth herein, the
      parties hereto agree as follows:

    

    1.  Amendment.
      The
      Holder’s Agreement is hereby amended as follows:

    

      (a)   Section
        1
        is hereby amended in part in that the Maturity Date shall be July 31,
        2007.

    

    

    (b)   Section
      2(a) is hereby amended in part in that, effective as of the date of this
      Amendment, the outstanding principal shall bear interest at the rate of nine
      (9%) percent per annum.

    

    2.  Miscellaneous.

     

    (a)  The
      Holder understands that by executing this Amendment it is giving up the right
      to
      be able to receive payment on demand until July 31, 2007.

     

    (b)  This
      Amendment may be executed on separate counterparts by the parties hereto, each
      of which when so executed and delivered shall be an original, but all of which
      shall constitute one and the same agreement. Electronically transmitted
      facsimile signatures shall be deemed valid as originals.

     

    (c)  This
      Amendment and the rights and obligations of the parties hereunder shall be
      construed in accordance with and be governed by the laws of the State of New
      York (without giving effect to the conflict of law principles
      thereof).

     

    (d)  The
      headings of the several sections of this Amendment are inserted for convenience
      only and shall not in any way affect the meaning or construction of any
      provision of this Amendment.

     

    (e)  This
      Amendment embodies the entire agreement and understanding among the parties
      relating to the first amendment to the Note and supersedes all prior proposals,
      negotiation, agreements and understandings relating to such subject
      matter.

     

     

    [SIGNATURE
      PAGE FOLLOWS]

    
      
         

      

      
        First
          Amendment to Note - Page 1 of 2

        
          

        

      

      
         

      

    

    

    IN
      WITNESS WHEREOF, this Amendment has been duly executed and delivered as a sealed
      instrument as of the date first above written.

     

    
      	 	 	 
	 	THE
              COMPANY:
	 	 
	 	TECHNOCONCEPTS, INC.
	 
 	 
 	 
 
	 	By:  	 
	 	
              
Antonio
              Turgeon, CEO

    

     

    
      	 	 	 
	 	THE
              NOTE HOLDER:
	 
 	 
 	 
 
	 	By:  	 
	 	
              

              Name:

              Title:

            

    

     

    
      
         

      

      
         First
          Amendment to Note - Page 2 of 2

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