Exhibit 10.1
FORM OF 6% CONVERTIBLE PROMISSORY
NOTE
THE SECURITES
EVIDENCED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT
OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS AND MAY
NOT BE OFFERED FOR SALE, SOLD, PLEDGED, ASSIGNED OR OTHERWISE
DISPOSED OF, AND NO TRANSFER OF THE SECURITIES WILL BE MADE BY THE
COMPANY OR ITS TRANSFER AGENT IN THE ABSENCE OF SUCH REGISTRATION
OR AN OPINION OF COUNSEL ACCEPTABLE TO THE COMPANY THAT SUCH
REGISTRATION IS NOT REQUIRED. 6% CONVERTIBLE PROMISSORY
NOTE
$_____________ Paterson,
New Jersey
FOR VALUE
RECEIVED, Hybrid Dynamics Corporation, a Nevada corporation, with
its principal place of business at 52-66 Iowa Ave., Paterson, NJ
07503, its successors and assigns (the “Maker”),
promises to pay to the order of ____________ – Tax
Identification Number _____________ (the “Payee”),
having an address at __________________, 24 months from the date
set forth above (the “Maturity Date”), or at such other
place as the Payee may hereafter specify in writing, the principal
sum of ______________ ($_____) unless the Payee earlier elects to
convert this promissory note (this “Note”) into common
stock of the Maker. This Convertible Promissory Note is one of a
series of notes being issued between the Maker and certain bridge
note investors.
1. The
principal amount of this Note is convertible, at the option of the
Payee at anytime prior to the Maturity Date without payment of any
additional consideration therefore, into common stock of the Maker
at the rate of Thirty Three Thousand Three Hundred and Thirty Three
(33,333) shares of common stock for each Five Thousand Dollars
($5,000) of principal. 2. The unpaid principal amount hereof shall
bear simple interest from the date hereof at the rate of 6% per
annum until the Maturity Date (or until the earlier date of payment
if this Note is prepaid or converted into common stock of the Maker
as provided herein). 3. Interest shall be payable in full on each
one year anniversary date (or until the earlier date of payment if
this Note is prepaid or converted into common stock of the Maker as
provided herein).
4. The Maker
may, at its own election, pay the interest due hereon in the form
of shares of its common stock, at the rate of one share of its
common stock for Fifty Cents ($.50) of interest due.
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 Maker; or
5.2 The Maker'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 Maker any such proceeding or filed against the Maker any such
application or petition which proceeding, application or petition
is not dismissed or withdrawn within 30 days of commencement or
filing as the case may be; or
5.3 The failure
by the Maker to m