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SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): February 24, 2006
HYBRID TECHNOLOGIES, INC.
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(Exact Name of Registrant as Specified in Its Charter)
Nevada 000-33391 88-0490890
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(State or Other Jurisdiction (Commission ( I.R.S. Employer
of Incorporation) File Number) Identification No.)
5001 East Bonanza Road, Suite 138-145, Las Vegas, Nevada 89110
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(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code: (818) 780-2403
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Former name or former address, if changed since last report
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2. below):
{ } Written communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
{ } Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a -12)
{ } Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d -2(b))
{ } Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e -4(c))
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Item 2.04. Triggering Events That Accelerate or Increase a Direct Financial
Obligation or an Obligation under an Off-Balance Sheet Arrangement.
On February 20, 2004, we entered into a Loan Agreement ("Loan Agreement") with
Sterling Capital Inc., pursuant to which three advances to us of $1,000,000 each
were made by Sterling Capital on February 24, April 14 and April 22, 2004,
comprising a total loan of $3,000,000 (the "Loan"). The Loan Agreement provides
that each installment shall be repaid on the date that is 24 months from the
date on which the installment was advanced to Borrower. The maturity date of the
first installment was February 24, 2006, and we are in default by reason of not
having repaid that installment of principal of the Loan within two business days
of February 24, 2006. The Loan Agreement provides that if we default in
repayment of any installment of principal of the Loan, Sterling Capital may
declare the then outstanding balance of the Loan, interest, costs and money
owing by us to be immediately due and payable.
As security for the Loan, we pledged an aggregate of 9,000,000 shares of
our Common Stock ("Pledged Shares"), and the certificates for the Pledged
Shares are held in trust by a Trustee pursuant to the Loan Agreement. Pursuant
to the Loan Agreement, Sterling Capital's sole recourse against us, if an
event of default has occurred and is continuing, is to take whole possession
of the Pledged Shares for their sole benefit. We have not received as of the
date of this report any formal notice of default from Sterling Capital. In
the event of Sterling Capital's declaration, pursuant to the Loan Agreement,
that all amounts owing to it under the Loan Agreement are immediately due and
payable, Sterling Capital's sole recourse will be to the Pledged Shares.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
HYBRID TECHNOLOGIES, INC.
Dated: March 2, 2006 By: /s/ Holly Roseberry
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Holly Roseberry, Chief Executive Officer