SETTLEMENT AGREEMENT AND RELEASE

THIS SETTLEMENT AGREEMENT AND RELEASE (the “Agreement”), is made as of the 15 day of October, 2008 (the “Effective Date”) by HYBRID DYNAMICS CORPORATION, a Nevada corporation (“Hybrid” or the “Company”), RED IRON GROUP, LLC , a Utah limited liability company (“RIG”), PUKKA USA, INC. , a Utah corporation (“Pukka”), and PAUL RESSLER, LEONARD DUCHARME and DARREN JENSEN (collectively, the “Terminating Shareholders”).

WHEREAS , the Terminating Shareholders are former officers and directors of Hybrid, and are now desirous of terminating their ownership interest in the Company and releasing the Company from any and all claims they may have against the Company, RIG and Pukka, and

WHEREAS , Hybrid, RIG and Pukka are desirous of releasing any and all claims they may have against the Terminating Shareholders.

NOW, THEREFORE, WITNESSETH that in consideration of the representations, warranties, covenants and agreements set forth herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Hybrid, and the Terminating Shareholders hereby agrees as follows:

1.       Mutual Global Release .  The Terminating Shareholders, individually and collectively, and for any affiliate corporation, partnership, limited liability company, proprietorship, trust, or other form of business entity related directly or indirectly to any of the foregoing, and for each of their respective heirs, administrators, executors, beneficiaries, legatees, devisees, trusts, trustees, insurers, attorneys, experts, consultants, partners, joint venturers, members, officers, directors, shareholders, employees, contractors, alter egos, agents, representatives, predecessors, successors and assigns, on the one hand, and Hybrid, RIG and Pukka, and any parent, subsidiary or affiliate corporation, partnership, limited liability company, proprietorship, trust, or other form of business entity related directly or indirectly to any of the foregoing, and each of their respective heirs, administrators, executors, beneficiaries, legatees, devisees, trusts, trustees, insurers, attorneys, experts, consultants, partners, joint venturers, members, officers, directors, shareholders, employees, contractors, alter egos, agents, representatives, predecessors, successors and assigns, on the other hand, do each hereby release, acquit, and forever discharge the other from any and all claims, actions, causes of action, judgments, awards, costs, expenses, attorneys’ fees, debts, obligations, promises, representations, warranties, demands, acts, omissions, rights and liabilities, of any kind and nature whatsoever, including but not limited to those at law, in equity, in tort, in contract, whether or not asserted to date, and whether known or unknown, suspected or unsuspected, which have arisen, are arising or may in the future arise, directly or indirectly, from or in connection with any matter or transaction of any kind or nature undertaken from the beginning of time until the date hereof, including, but not limited to any and all rights or claims to stock ownership, equity ownership, ownership of debt instruments or any other rights of ownership, including options or warrants, which the Terminating Shareholders may have in Hybrid or any of its affiliates, or which Hybrid may have in any of the Terminating

Shareholders or their affiliates  (the matter