Document:

Employment Agreement (Feilmeier)

    EXHIBIT
      10.3

    

    EMPLOYMENT
      AGREEMENT

    

    This
      employment agreement (“Agreement”) is made as of the 1 day of January, 2005,
      between Gabriel Technologies Corporation, organized and existing under the
      laws
      of Delaware, with its principal office located at Omaha, Douglas County,
      Nebraska (“Employer”), and Keith R. Feilmeier, whose address is 20740
      Timberlane Dr., Elkhorn, Nebraska (“Employee”).

    

    RECITALS

    

    A. Employer
      is engaged in the business of producing and distributing locking devices for
      use
      in the transportation industry and maintains business premises at 4538 So.
      140th
      Omaha,
      Nebraska 68137 (the “business premises”).

    

    B. Employee
      is willing to be employed by Employer, and Employer is willing to
      employ Employee,
      on the terms and conditions set forth below. In consideration of the matters
      described above, and of the mutual benefits arid obligations set forth in this
      agreement, the parties agree as follows:

    

    1. EMPLOYMENT.
      Employer employs Employee at the business premises to serve in the position
      of
      its Chief Executive Officer and Employee accepts
      and agrees to such employment.

    

    2. DUTIES.
      Subject to the supervision arid pursuant to the orders, advice, and direction
      of
      employer, Employee shall perform such duties as are customarily performed by
      one
      holding such position in other businesses or enterprises of the same or similar
      nature as that engaged in by employer. Employee shall additionally render such
      other and unrelated services and duties as may be assigned to him from time
      to
      time by Employer.

    

    3. MANNER
      OF
      PERFORMANCE. Employee shall at all times faithfully, industriously, and to
      the
      best of his ability, experience, and talent, perform all duties that may be
      required of and from him pursuant to the express and implicit terms of this
      agreement, to the reasonable satisfaction of Employer. Such duties shall be
      rendered at the business premises and at such other place or places as Employer
      shall in good faith require or as the interests, needs, business, and
      opportunities of Employer shall require or make advisable.

    

    4. TERM.
      The
      term of employment shall be three year, commencing on January 1, 2005 and
      terminating December 31, 2008, subject,
      however, to prior termination as otherwise provided in this agreement. Upon
      expiration of the term of this Agreement, or any renewal thereof, this Agreement
      will be automatically renewed. for an additional one year term unless on party
      gives the other party written notice of its intent to terminate the Agreement
      at
      least forty five (45) days prior to the end of the term, or any extension
      thereof.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    5. COMPENSATION.
      Employer shall pay Employee and Employee agrees to accept from Employer, in
      full
      payment for Employee’s services under this agreement, compensation at the rate
      of Two Hundred Fifty Thousand and 00 / l00ths Dollars $250,000.00 per annum,
      payable monthly in equal installments of Twenty Thousand Eight Hundred Thirty
      Three and 33 / l00ths Dollars ($20,833.33), which
      shall be payable of the first clay of each month. In addition to the foregoing,
      Employer will permit Employee to participate in any health insurance, retirement
      plans and other fringe benefit: programs that are provided to Employees of
      the
      Company generally, and, will reimburse Employee for any and all necessary,
      customary, and usual expenses incurred by him while traveling for and on behalf
      of Employer pursuant to Employer’s directions.

    

    In
      addition to Employee’s regular salary and benefits, Employer will pay a cash
      bonus to Employee in the amount of Two Hundred Fifty Thousand and no/ l00ths
      Dollars ($250,000.00) within sixty (60) days of a successful private placement
      of the Company’s equity securities and listing of the same for trading on a
      NASDAQ OTC BB securities exchange. After such listing has been obtained, the
      Company will distribute to Employee Warrants for the purchase of the Company’s
      listed securities in the event certain sales goals have been obtained, on the
      following basis:

    

    
      	
              Annual
                Sales

            	
              Number
                of Warrants

            
	
              $10,000,000

            	
              500,000

            
	
              $20,000,000

            	
              500,000

            
	
              Listing
                on NASDAQ

            	
              500,000

            

    

    

    6. LOYALTY.
      Employee shall devote all of his time, attention, knowledge, and
      skill
      solely and exclusively to the business and interests of Employer, and Employer
      shall be entitled to all benefits, emoluments, profits, or other issues arising
      from or incident to any and all work, services, and advice of Employee. Employee
      agrees that during the term of this agreement he will not be interested,
      directly or indirectly, in any form, fashion, or manner, as partner, officer,
      director, stockholder, advisor, Employee, or in any other form or capacity,
      in
      any other business similar to Employer’s business or any allied trade, except
      that nothing contained in this agreement shall be deemed to prevent or limit
      the
      right of Employee to invest any of his surplus funds in the capital stock or
      other securities of any corporation whose stock or securities are publicly
      owned
      or are regularly traded on any public exchange, nor shall anything contained
      in
      this agreement be deemed to prevent Employee from investing or limit Employee’s
      right to invest his surplus funds in real estate.

    

    7. NONDISCLOSURE
      OF INFORMATION. Employee will not at any time, in any fashion, form, or manner,
      either directly or indirectly divulge, disclose, or communicate to any person,
      firm, or corporation in any manner whatsoever any information of any kind,
      nature, or description concerning any matters affecting or relating to the
      business of Employer, including, but not limited to, the names of any its
      customers, the prices it obtains or has obtained, or at which it sells or has
      sold its products, or any other information concerning the business of Employer,
      its manner of operation, or its plans, processes, or other date of any kind,
      nature, or description without regard to whether any or all of the foregoing
      matters would be deemed confidential, material, or important. The parties
      stipulate that, as between them, the foregoing matters are important, material,
      and confidential, and gravely affect the effective and successful conduct of
      the
      business of Employer, and its good will, and that any breach of the terms of
      this section is a material breach of this agreement.

    
      
        
        

      

      
        -2-

        
          

        

      

      
        
        

      

    

    8. TERMINATION
      ON PERMANENT DISABILITY OF EMPLOYEE. Notwithstanding anything in this agreement
      to the contrary, Employee is an employee
      at willl and
      employment may be terminated by Employer at any time for any reason. Employer
      is
      given the option to terminate this agreement if during the term of this
      agreement employee shall become permanently disabled, as the term “permanently
      disabled” is fixed and defined below in this agreement. Such option shall be
      exercised by Employer giving notice to Employee by registered mail, addressed
      to
      Employee in care of Employer at the above stated address, or at such other
      address as Employee shall designate in writing, of its intention to terminate
      this agreement on the last day of the month during which such notice is mailed.
      On the giving of such notice this agreement and the term, of it shall cease
      and
      come to an end on the last day of the month in which the notice is mailed,
      with
      the same force and effect as if such last day of the month were the date
      originally set forth as the termination date. For purposes of this agreement,
      Employee shall be deemed to have become permanently disabled if, during any
      year
      of the
      term
      of this agreement, because of ill health, physical or mental disability, or
      for
      other causes beyond his control, Employee shall have been continuously unable
      or
      unwilling or have failed to perform his duties under this agreement for thirty
      (30) consecutive days, or if, during any year of the term of this agreement,
      Employee shall have been unable or have failed to perform his duties for a
      total
      period of sixty (60) days, whether consecutive or not. For the purposes of
      this
      section, the term “any year of the term of this agreement” is defined to mean
      any period of 12 calendar months commencing on the first day of January and
      terminating on the last day of December of the year during the term of this
      agreement. Contrary, this agreement and the payment of this agreement is in
      full
      force for 3 years and the termination, whether for health or any unforeseen
      reason does not forgive the company from paying the employee for a period of
      three years.

    

    9. EMPLOYEE’S
      COMMITMENTS--WRITTEN CONSENT. Employee shall have the right to make any
      contracts or other commitments for or on behalf of Employer without the written
      consent of Employer.

    

    10.  CONTRACT
      TERMS To BE EXCLUSIVE. This written agreement contains the sole and entire
      agreement between the parties, and, supersedes any and all other agreements
      between them. The parties acknowledge and agree that neither of them has made
      any representation with respect to the subject matter of this agreement or
      any
      representations inducing the execution and delivery of this agreement except
      such representations as are specifically set forth in. this agreement, and
      each
      party acknowledges that he or it has relied on his or its own judgment in
      entering into the agreement. The parties further acknowledge that any statements
      or representations that may have been made prior to this agreement by either
      of
      them to the other are void and of no effect and that neither of them has relied
      on the same in connection with his or its dealings with the other.

    

    11.  WAIVER
      OR
      MODIFICATION. No waiver or modification of this agreement or of any covenant,
      condition, or limitation contained in this agreement shall be valid unless
      in
      writing and duly executed by the party to be charged with the same. Furthermore,
      no evidence of any waiver or modification shall be offered or received in
      evidence in any proceeding, arbitration, or litigation between the parties
      arising out of or affecting this agreement, or the rights or obligations of
      any
      party under this agreement, unless such waiver or modification is in writing
      and
      duly executed. The provisions of this paragraph may not be waived except as
      set
      forth in this paragraph.

    
      
        
        

      

      
        -3-

        
          

        

      

      
        
        

      

    

    12.  GOVERNING
      LAW. This agreement and performance under it shall, be construed in accordance
      with the laws of the State of Nebraska.

    

    13.  BINDING
      EFFECT. This agreement shall be binding on and inure to the benefit of the
      respective parties and their respective heirs, legal representatives,
      successors, and assigns. The parties have executed this agreement at Omaha,
      Douglas County, Nebraska the day and year first above written.

    

    IN
      WITNESS WHEREOF, the parties have executed this Agreement as of the day and
      year
      first above written.

     

    
      

      GABRIEL
        TECHNOLOGIES CORPORATION

      

      

      

      By:       /s/
        K.
        R.
        Feilmeier                                                   

      Title:   
        President                                                                
        

      

      

      

                 
        /s/ Keith
        R.
        Feilmeier                                             

                 
        Keith
        R.
        Feilmeier

       

       

      -4-Pali Letter Agreement

    

      EXHIBIT
        10.4

      

      

      

      

      March
        22,
        2005

      

      Maurice
        Shanley

      

      Dear
        Mo,

      

      This
        letter
        serves to confirm our Agreement regarding the introduction by Pali Capital,
        Inc.
        (the “Representative”) to Gabriel Technologies Corporation (the “Company”)
        of one or more investors (the “Investor”) to purchase the Company’s securities
        described below (the “Securities”) on the following terms and
        conditions.

      

      
        	 	
                1.

              	
                Appointment
                  as Representative.

              

      

       

      (A) The
        Company appoints the Representative as its exclusive representative for the
        term
        of this Agreement in order to attempt to raise money for the Company by
        introducing it to investors to purchase the Company’s Securities in a method not
        requiring registration with the Securities and Exchange Commission or the
        securities commission of any state. The exact sum and the particulars of
        the
        Securities will be upon terms to be negotiated between the Company and the
        Investor(s). Such terms shall be acceptable to the Company in its sole
        discretion. The Company understands that the Representative has not made
        any
        representations that an investment in the Securities will be obtained by
        the
        Representative on terms agreeable to the Company.

      

      (B) The
        Representative accepts such appointment and agrees to attempt to raise the
        funds
        contemplated by this Agreement for the Company, subject to the provisions
        and
        conditions of this Agreement; provided, however, that nothing in this Agreement
        or otherwise shall be deemed a guaranty or warranty that the Representative
        will
        be able to raise any money for the Company.

      

      
        	 	
                2.

              	
                Company’s
                  Duties.

              

      

      

      The
        Company, with the assistance of the Representative, shall prepare a Term
        Sheet
        or the like, a Private Placement Memorandum, (the “PPM”) and such other
        documents as may be necessary for the non-public offering and sale by the
        Company of its restricted securities as contemplated by paragraph 1 of this
        Agreement, (hereinafter collectively the “Information”) and the Company shall
        comply with all federal and state securities laws applicable to the Company’s
        offer and sale of such restricted securities. The Company herein represents
        that
        any Information provided to the Representative by the Company will be complete
        and correct in all material respects and will not include any untrue statement
        of a material fact or omit to state a material fact necessary in order to
        make
        the statements therein, in the light of the circumstances under which they
        were
        made, not misleading, (ii) all historical financial data contained in the
        Information will be prepared in accordance with generally accepted accounting
        principles then in effect in the United States and will fairly present in
        all
        material respects the financial condition and operations of the Company as
        of
        the respective date or dates. The Company will notify Introducer promptly
        of any
        material adverse change in the business, properties, operations, financial
        condition or prospects of the Company, or concerning any statement contained
        in
        any of the Information provided by the Company to the Representative which
        is
        not accurate or which is incomplete or misleading in any material respect.
        The
        Company acknowledges that the Representative may rely, without independent
        verification, upon the accuracy and completeness of the Information, and
        that
        the Representative does not assume any responsibility therefore.

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      The
        Company further herein indemnifies, defends and holds harmless the
        Representative and its affiliates and their respective officers, directors,
        attorneys, employees, agents and controlling persons (each an “Indemnified
        Person”) from and against any and all losses, claims, damages, liabilities and
        expenses, joint or several, to which any such Indemnified Person may become
        subject arising out of any untrue statement or alleged untrue statement of
        a
        material fact contained in the Information or a violation of this Agreement
        by
        the Company or any claim, litigation, investigation or proceedings relating
        to
        the foregoing regardless of whether any of such Indemnified Person or Persons
        is
        a party thereto, and to reimburse such Indemnified Person or Persons for
        any
        legal or other expenses as they are incurred in connection with investigating
        or
        defending any of the foregoing, provided that the foregoing indemnification
        will
        not, as to any Indemnified Person, apply to losses, claims, damages, liabilities
        or expenses to the extent that they are finally judicially determined to
        have
        resulted from the gross negligence, willful misconduct, bad faith or criminal
        misconduct of such Indemnified Person. The company further acknowledges that
        any
        indemnification pursuant to this paragraph 2 shall in no way limit, alter
        or
        nullify any provisions specified in this paragraph 8 hereof.

      

      
        	 	
                3.

              	
                Purchase,
                  Sale and Delivery of the Shares.

              

      

      

      On
        the
        basis of the representations and warranties herein contained and subject
        to the
        terms and conditions herein set forth:

      

      (A) The
        Company hereby appoints Representative as its exclusive agent, to solicit
        purchase of the Securities, and Representative agrees to use its best efforts
        to
        obtain such purchase to the extent consistent with the requirements of Sections
        4(2) and 4(6) of the Act, Regulation D, and applicable requirements of the
        securities laws of any state in which the sale of the Shares is being made.
        It
        is understood that no sale shall be regarded as effective unless and until
        accepted by the Company, and that the Company reserves the right to refuse
        to
        sell the Shares to any person; provided, however, acceptance of a subscription
        by the Company shall not be unreasonably withheld. It shall be the obligation
        of
        the Company to determine, prior to acceptance of a subscription, that the
        prospective investor is an accredited investor. The Company shall be entitled
        to
        rely on the representations as to the status of a prospective investor contained
        in the subscription documents. Representative will solicit the exercise of
        1,145
        of Company’s warrants as contemplated by this agreement exercisable at $2.00 per
        share. Said shares are also to be determined as “kicker warrants.”

      

      (B) Representative
        shall observe the following procedures with respect to the
        offering:

      

      (i) Prior
        to
        delivery of the PPM to any prospective investor, Representative shall deliver
        a
        copy of a Non-Disclosure Agreement provided by the Company and shall receive
        an
        executed copy of the Non-Disclosure Agreement from the prospective investor.
        Representative shall deliver the original copy of the executed Non-Disclosure
        Agreement to the Company.

      

      (ii) If
        a
        prospective investor to whom a copy of the PPM has been provided decides
        not to
        participate in the Offering, Representative shall use its best-efforts to
        recover the copy of the PPM delivered to such prospective investor.

      

      
        
           

        

        
          -2-

          
            

          

        

        
           

        

      

      4.     Compensation
        to the Representative.

      

      (A) Fees.
        If
        during
        the term of this Agreement, or within twelve (12) months after its termination,
        the Company sells any of its Securities to one or more Investors introduced
        by
        the Representative, the Company shall pay to the Representative, at the closing
        of each sale of Securities, a fee equal to:

      

      (i) Nine
        percent (9%) of the gross proceeds of the Securities sold at each closing;
        and

      

      (ii) Warrants
        to purchase common shares equal to nine percent (9.00%) of the total face
        amount
        of the equity financing raised at each closing with an exercise price equal
        to
        the price at which the investor acquires such shares and with such other
        terms
        including registration rights and duration as any warrants issued to the
        investors. In the event that no warrants are issued to an investor, the warrants
        will carry the same registration rights as the shares and the term of the
        warrants issued hereunder shall be 5 years.
        The number of shares which can be purchased pursuant to the warrants shall
        be
        determined by multiplying the face amount of the financing by ten percent
        (10%)
        and dividing the result by the price at which the investor acquires the
        stock.

      

      (iii) In
        the
        event of a sale of the majority of Securities of the Company to one or more
        investors, Company shall pay to the Representative, in addition to other
        fees
        and compensation as contemplated herein, at the closing of the sale of Company
        two percent (2%) of the gross proceeds of the Securities sold resulting in
        a
        change in ownership of Company.

      

      5.     Expenses.

      

      In
        addition to the fees described in paragraph 4 above, the Company agrees to
        reimburse the Representative for all out-of-pocket expenses incurred in
        connection with or arising out of the Representative’s activities pursuant to or
        contemplated by this Agreement, including a reimbursement of $20,000 of
        non-accountable expenses.

      

      6.     Representative’s
        Duties.

      

      The
        Representative shall:

      

      (A) Endeavor
        to aid the Company to sell its Securities, as contemplated by this Agreement;
        provided, however, that nothing in this Agreement or otherwise shall be deemed
        a
        guaranty or warranty by the Representative that it will be successful in
        raising
        any money for the Company;

      

      (B) Devote
        such time as the Representative determines may be reasonably necessary for
        the
        purpose of aiding the Company to sell its Securities; and

      

      (C) Provide
        a
        monthly report to the Company listing investors with whom they have had
        communications.

      
        
           

        

        
          -3-

          
            

          

        

        
           

        

      

      
        	 	
                7.

              	
                Term
                  of Agreement.

              

      

      

      This
        Agreement shall continue for a term of 90 days to be extended upon written
        agreement of both parties. If extended beyond the 90-day period, this Agreement
        shall continue for a term of five years. Throughout the duration of this
        Agreement, Company agrees to enable Representative to name one director to
        the
        Company’s board of directors in exchange for Representative’s activities
        contemplated by this engagement.

      

      
        	 	
                8.

              	
                No
                  Employment Contract.

              

      

       

      Nothing
        contained in the Agreement shall be construed to constitute the Representative
        as a partner, employee, or agent of the Company, nor shall either party have
        any
        authority to bind the other in any respect, it being intended that each shall
        remain an independent contractor responsible for its own actions. The Company
        further understands and herein acknowledges that the Representative may engage
        in similar activities with other individuals or entities in its sole and
        absolute discretion.

      

      
        	 	
                9.

              	
                Future
                  Financings; Investment Banking
                  Services.

              

      

      

      If
        the
        Representative raises the funds contemplated by this Agreement for the Company,
        the Company:

      

      (A) Agrees
        that the Representative shall have a right of first refusal for the next
        three
        (3) years with respect to all future
        financings,
        public or private, involving the sale of stock by the Company or the sale
        of
        securities convertible into stock of the Company (“Future Company Financings”).
        If the Company contemplates any such Future Company Financings, it shall
        provide
        the Representative with a written term sheet, which shall describe in reasonable
        detail all of the salient terms of such Future Company Financing(s) (the
“Term
        Sheet”). The Representative shall have thirty (30) days from the date it
        receives the Term Sheet to advise the Company whether or not it wishes to
        attempt to effect such Future Company Financing for the Company. If the
        Representative advises the Company that it wishes to do so, the parties will
        negotiate in good faith regarding the preparation and execution of a mutually
        satisfactory agreement.

      

      (B) Agrees
        to
        retain the services of the Representative to provide it with investment banking
        services and advice for a period of (5) years
        after the raising of such funds for the Company at a monthly fee mutually
        agreed
        to between the Company and the Representative.

      

      
        	 	
                10.

              	
                Indemnification

              

      

      

      The
        Parties agree to indemnify one another and hold each other harmless from
        and
        against any losses, claims, damages, judgments, assessments, costs and other
        liabilities and shall reimburse each other for all fees and expenses (including
        reasonable attorneys fees) as they are incurred by an indemnified party in
        defending any claim, action or proceeding arising out of or in connection
        with
        any untrue
        statement
        of material fact or omission to state a material fact. No Party from whom
        indemnification shall be sought shall be liable for the negligence, gross
        negligence, bad faith or willful misconduct of the other Party.

      

      The
        Party
        seeking indemnification shall, within fifteen (15) days of receipt of actual
        notice of the claim, action or proceeding, notify the other party in writing
        of
        the claim, action or proceeding. Failure to notify the party who is obligated
        to
        provide the indemnity described herein of the claim, action or proceeding
        shall
        result in an absolute waiver of the Party’s right to seek
        indemnification.

      
        
           

        

        
          -4-

          
            

          

        

        
           

        

      

      
        	 	
                11.

              	
                Entire
                  Contract.

              

      

      

      This
        Agreement contains the entire understanding of the Parties and supersedes
        all
        previous verbal and written agreements. The Parties herein acknowledge that
        there are no other agreements, representations, or warranties other then
        those
        set forth herein.

      

      
        	 	
                12.

              	
                Dispute
                  Resolution, Attorney Fees.

              

      

      

      The
        Company hereby irrevocably submits to the jurisdiction of any New York State
        or
        Federal court sitting in New York County over any action or proceeding arising
        out of or relating to this Agreement and the Company hereby irrevocably agrees
        that all claims in respect of such action or proceeding may be heard and
        determined in such New York State or Federal court. The Company hereby
        irrevocably waives, to the fullest extent it may effectively do so, the defense
        of an inconvenient forum to the maintenance of such action or proceeding.
        The
        Company agrees that a final judgment in any such action or proceeding shall
        be
        conclusive and may be enforced in other jurisdictions by suit on the judgment
        or
        in any other manner provided by law. Nothing in this paragraph 10 shall affect
        the right of the Representative to bring any action or proceeding against
        the
        Company in the courts of any other jurisdiction.

      

      
        	 	
                13.

              	
                Governing
                  Law.

              

      

      

      This
        Agreement shall be construed in accordance with, and governed by, the procedural
        and substantive laws of the State of New York, without giving effect to conflict
        of law principles.

      

      
        	 	
                14.

              	
                Binding
                  Effect.

              

      

      

      The
        provisions of this Agreement shall be binding upon and inure to the benefit
        of
        each of the Parties and their respective successors and assigns. This document
        shall be binding when signed in counterpart and/or delivered by
        facsimile.

      

      If
        the
        foregoing meets with your understanding and approval, please sign and return
        one
        copy to me for our records.

      

      Very
        truly yours,

      

      PALI
        CAPITAL, INC.

      

      

      By:      /s/
        Signature not
        legible                   
 

      

      Dated:      3/22/2005                                        
        

      

      

      

      Accepted
        and Agreed to:

      

      

                  
        /s/ Maurice
        Shanley                            

      

      
        
           

        

        
          -5-

          
            

          

        

        
           

        

      

      [GABRIEL
        TECHNOLOGIES CORP. LETTERHEAD]

      

      

      

      November
        14, 2005

      

      

      

      Matthew
        Gohd

      Pali
        Capital

      650
        5th
        Avenue,
        6th
        Floor

      New
        York,
        NY 10019

      

      Dear
        Matt:

      

      This
        letter is to amend section 4. Compensation to the Representative (A(iii)),
        of
        the Engagement Agreement dated March 22, 2005. This section should be amended
        to
        include the sale of any subsidiaries of Gabriel Technologies as
        well.

      

       

                  
        /s/ Keith
        Feilmeier                                    

      Keith
        Feilmeier

      
        
           

        

        
          -6-

          
            

          

        

        
           

        

      

      [GABRIEL
        TECHNOLOGIES CORP. LETTERHEAD]

      

      

       

      

      July
        13,
        2005

       

      

      Mr.
        Matt
        Gohd

      Pali
        Capital

      650
        Fifth
        Ave

      New
        York,
        NY

      

      Dear
        Matt:

      

      This
        is
        to confirm the discussions and agreement reached concerning warrants previously
        issued to Pali Capital and their investors by Gabriel Technologies Corp.
        As
        additional consideration in settlement of the current outstanding balance
        for
        past fees of $187,000, I confirm that Gabriel will re-price the warrants
        issued
        in the second round as “kickers”, plus the Pall warrants for that round, to be
        exercisable into common stock at an exercise price of the market closing
        price
        today, and will increase the number of those warrants by 20%.

      

      Additionally,
        I agree to the modification discussed earlier, increasing the additional
        warrant
        for unregistered common shares to Pali from 40,000 to 70,000.

      

      Sincerely,

      

      

      

                 
        /s/ Keith
        Feilmeier                          

      Keith
        Feilmeier

      CEO

      Gabriel
        Technologies Corp

      
        
           

        

        
          -7-

          
            

          

        

        
           

        

      

      GABRIEL
        TECHNOLOGIES CORP. LETTERHEAD]

      

       

      

      

      

      July
        13,
        2005

       

      

      Mr.
        Matt
        Gohd

      Pali
        Capital

      650
        Fifth
        Ave

      New
        York,
        NY

      

      Dear
        Matt:

      

      This
        is
        to confirm the discussions and agreement reached concerning fees due Pali
        by
        Gabriel Technologies Corp. As to the current outstanding balance for past
        fees
        of $187,000, I confirm the following:

      

      1
        Gabriel
        will issue 40,000 warrants exercisable into common stock at 05 to Pali Capital.
        Gabriel agrees to registered the underlying shares within 90 days.

      

      2.
        Gabriel will sign a promissory note for $187,000 with an 11% interest
        rate and payable within 90 days, will repay this from “first dollars” received
        from any equity or debt proceeds (other than normal revolving debt associated
        with working capital financing of inventory and receivables) and apprise
        Pali
        immediately of receipt of either. The Chuck Matteson transaction is set aside
        from this agreement.

      

      3.
        Gabriel will adjust “kicker warrants” issued to investors to either 2.00 per
        share or 110% of the price of any equity issuances completed prior to payment
        of
        the note, whichever is lower.

      

      Sincerely,

      

      

                      
          /s/ Keith
        Feilmeier                         

      Keith
        Feilmeier

      CEO

      Gabriel
        Technologies Corp.

       

       

       

      -8-

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