Document:

Gillotti Subscription Agr

    Exhibit
      10.9

     

    SUBSCRIPTION
      AGREEMENT

    

    

    THIS
      SUBSCRIPTION AGREEMENT (this “Agreement”) is made as of the 14th
      day
      of
      September, 2006, between Gabriel Technologies Corporation, a Delaware
      corporation (the “Company”), and the undersigned subscriber
      (“Subscriber”).

    

    RECITALS

    

    WHEREAS,
      the
      Company obtained financing from Subscriber pursuant to (i) that certain
      promissory note dated April 3, 2006, in the original principal sum of $50,000,
      bearing an interest rate of 9% per year; and (ii) that certain promissory note
      dated April 28, 2006, in the original principal sum of $50,000, bearing an
      interest rate of 9% per year (both promissory notes being referred to herein
      collectively as the “Notes”); and

    

    WHEREAS,
      as of
      the date hereof, the outstanding principal balance of the Notes, combined,
      together with accrued interest was $104,068.58; and

    

    WHEREAS,
      Subscriber desires to surrender and cancel the Notes, to be marked
“paid-in-full” in consideration of the issuance by the Company of an aggregate
      of 104,068 shares (the “Shares”) of the Company’s common stock, par value $0.001
      per share (“Common Stock”) and a warrant (the “Warrant”) to purchase 50,000
      shares of Common Stock at an exercise price of $1.00 per share (the “Private
      Sale”). The Shares and the number of shares of Common Stock issuable upon
      exercise of the Warrant are referred to collectively as the “Securities.” The
      Warrant will be substantially in the form attached hereto as Exhibit
      A.

    

    NOW
      THEREFORE, for and in consideration of the mutual representations and covenants
      herein, the parties hereby agree as follows:

    

    1. Subscription
      for Shares

    

    Subject
      to the terms and conditions hereinafter set forth, Subscriber hereby subscribes
      for and irrevocably agrees to accept from the Company the number of Shares
      set
      forth on the signature page hereof, and the Company agrees to delivers such
      Shares to Subscriber, in consideration of cancellation of the Notes. The
      certificates evidencing the Shares received by the Subscriber in consideration
      of the cancellation of the Notes will be delivered by the Company to the
      Subscriber as soon as practicable upon receipt of the original Notes from
      Subscriber.

    

    2. Representations
      by Subscriber

    

    Subscriber
      understands and agrees that the Company is relying and may rely upon the
      following representations, warranties, and agreements made by Subscriber in
      entering into this Agreement:

    

    2.1 Subscriber
      recognizes that the investment in the Securities involves a high degree of
      risk
      and is suitable only for persons of adequate financial means who have no need
      for liquidity in this investment, in that (a) it may not be possible to
      liquidate the investment in the event of emergency; (b) transferability is
      extremely limited; and (c) in the event of a disposition, a complete loss of
      investment could occur.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    2.2 Subscriber
      acknowledges that he (a) is competent to understand and does understand the
      nature of the investment, and (b) is able to bear the economic risk of the
      investment.

    

    2.3 Subscriber
      represents that he is an accredited investor as defined in Rule 501 of
      Regulation D promulgated by the Securities and Exchange Commission (the “SEC”)
      under the Securities Act of 1933, as amended (the “Act”).

    

    2.4 Subscriber
      acknowledges that he has significant prior investment experience, including
      investment in nonlisted and nonregistered securities, and that he has read
      all
      of the documents furnished or made available by the Company to evaluate the
      merits and risks of the investment, recognizes the highly speculative nature
      of
      this investment, and is able to bear the economic risk hereby
      assumed.

    

    2.5. Subscriber
      represents that all information regarding the Company which was requested or
      desired has been furnished; that all other documents which could be reasonably
      provided have been made available for inspection and review; and that the
      Subscriber has been afforded the opportunity to ask questions of and receive
      answers from the Company concerning the terms and conditions of the Private
      Sale
      and any additional information which has been requested.

    

    2.6 Subscriber
      hereby acknowledges that this Private Sale of Securities has not been registered
      with the SEC because it is intended to be a private sale pursuant to Section
      4(2) of the Act.

    

    2.7 Subscriber
      represents that the Securities are being purchased for his or her own account,
      for investment, and not for distribution or resale to others. Subscriber agrees
      that he will not sell, transfer, or otherwise dispose of the Securities or
      any
      portion thereof unless they are registered under the Act or unless an exemption
      from such registration is available.

    

    2.8 Subscriber
      may, with the Company’s written consent, transfer the Securities if such request
      for transfer is accompanied by an opinion of counsel satisfactory to the Company
      that neither the sale nor the proposed transfer of the Securities results in
      a
      violation of the Act or any applicable state “blue sky” laws (collectively, the
“Securities Laws”). Subscriber agrees to hold the Company, its officer and
      directors, and their respective heirs, representatives, successors, and assigns
      harmless and to indemnify them against all liabilities, costs, and expenses
      (including attorneys’ fees) incurred by them as a result of any sale or
      distribution of the Securities by Subscriber in violation of any Securities
      Laws
      or any misrepresentation herein.

    

    2.9 Subscriber
      consents to the placement of a legend on the certificates evidencing the Shares
      stating that they have not been registered under the Act and setting forth
      or
      referring to the restrictions on transferability and sale thereof.

    

    3. Representations
      by the Company

    

    The
      Company represents and warrants to Subscriber as follows:

    

    3.1. The
      Company is a corporation duly organized, existing, and in good standing under
      the laws of Delaware and has the corporate power to conduct its
      business.

    

    3.2. The
      execution, delivery, and performance of this Agreement by the Company has been
      duly approved by the Board of Directors of the Company.

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    3.3. The
      Securities have been duly and validly authorized and the Shares will be duly
      and
      validly authorized and issued, fully paid, and non-assessable.

    

    4. Investment
      Restrictions

    

    4.1 Subscriber
      acknowledges that there is a very limited public market for the Shares.
      Subscriber understands that, absent registration under the Act, the Securities
      generally may only be publicly sold pursuant to Rule 144 (the “Rule”)
      promulgated under the Act. The Rule permits, subject to all of its terms and
      conditions, the public resale (in limited amounts) of securities acquired in
      nonpublic offerings without having to satisfy the registration requirements
      of
      the Act. Accordingly, Subscriber recognizes that, notwithstanding the existence
      of a public market for the Shares, he may not be able to take advantage of
      the
      resale provisions of the Rule and may be unable to publicly offer or sell any
      of
      the Securities.

    

    4.2 Underwriting
      Requirements. In connection with any underwritten public offering, the Company
      shall not be required to include any of the Securities subscribed for hereunder
      in such underwriting unless the Subscriber accepts the terms of the underwriting
      as agreed upon between the Company and the underwriters for the offering (which
      underwriters shall be selected by the Company).

    

    5. Notices
      to Subscriber

    

    5.1 THE
      SECURITIES HAVE NOT BEEN REGISTERED UNDER THE ACT AND ARE BEING OFFERED AND
      SOLD
      IN RELIANCE ON AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE ACT.
      THE
      SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SEC OR OTHER REGULATORY
      AUTHORITY, NOR HAVE ANY OF THE FOREGOING AUTHORITIES PASSED UPON OR ENDORSED
      THE
      MERITS OF THE OFFERING. ANY REPRESENTATION TO THE CONTRARY IS
      UNLAWFUL.

    

    5.2 The
      Securities are subject to restrictions on transferability and resale and may
      not
      be transferred or resold except as permitted under the Act and applicable state
      securities laws, pursuant to registration or exemption therefrom.

    

    6. Miscellaneous

    

    6.1 Any
      notice or other communication given hereunder shall be deemed sufficient if
      in
      writing and sent by registered or certified mail, return receipt requested,
      overnight mail or courier, or telecopier, addressed to the Company at 4538
      S.
      140th
      Street,
      Omaha, Nebraska, 68137, and to each Subscriber at the address indicated on
      the
      signature page hereof. Notices shall be deemed to have been given on the date
      of
      mailing, except notices of change of address, which shall be deemed to have
      been
      given when received.

    

    6.2 This
      Agreement shall not be changed, modified, or amended except by a writing signed
      by the party to be charged, and this Agreement may not be discharged except
      by
      performance in accordance with its terms or by a writing signed by the party
      to
      be charged.

    

    6.3 This
      Agreement shall be binding upon and inure to the benefit of the parties hereto
      and to their respective heirs, legal representatives, successors, and assigns.
      This Agreement sets forth the entire agreement and understanding between the
      parties as to the subject matter thereof and merges and supersedes all prior
      discussions, agreements, and understandings of any and every nature between
      them. Subscriber acknowledges and agrees that the Company is making no
      representations in connection with the purchase and sale of the Securities
      except as expressly set forth herein.

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    6.4 This
      Agreement and its validity, construction and performance shall be governed
      in
      all respects by the laws of Delaware applicable to agreements to be performed
      wholly within Delaware, without regard to its conflicts of laws
      provisions.

    

    6.5 ThIs
      Agreement may be executed in counterparts. Upon the execution and delivery
      of
      this Agreement by the Subscriber this Agreement shall become a binding
      obligation of the Subscriber with respect to the purchase of the Securities
      as
      herein provided.

    

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

    

    Subscriber:

    

    

    

    /s/
      Marlo
      Gillotti                               
 

    Marlo
      Gillotti

    Number
      of
      Shares:  104,068

    
 

    
       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

    

     

    

      EXHIBIT
        A

       

      

      The
        securities represented by this certificate have not been registered under
        the
        Securities Act of 1933, as amended, and may not be sold, exchanged or
        transferred in any manner in the absence of such registration or an opinion
        of
        counsel reasonably acceptable to the Company that no such registration is
        required.

       

      

      WARRANT
        CERTIFICATE

      GABRIEL
        TECHNOLOGIES CORPORATION

      INCORPORATED
        UNDER THE LAWS OF

      THE
        STATE OF DELAWARE

      

      

      1.1 Basic
        Terms.
        This
        certifies that, for value received, the registered owner set forth below,
        or its
        registered assigns (“Registered Owner”) is entitled, subject to the terms and
        conditions of this Warrant (this “Warrant”), until the Expiration Date set forth
        below, to purchase 50,000 shares of the Common Stock, par value $0.001 (the
        “Common Stock”), of Gabriel Technologies Corporation, a Delaware corporation
        (the “Company”), from the Company at the Purchase Price shown below, on delivery
        of this Warrant to the Company with an exercise form, as provided by the
        Company
        (an “Exercise Form”), duly executed and payment of the Purchase Price (in cash
        or by certified or bank cashier’s check payable to the order of the Company) for
        each Warrant Share purchased. The term “Warrant Shares,” as used herein, refers
        to the shares of Common Stock purchasable hereunder.

      

        
          
            	
                    Registered
                      Owner:

                  	 	
                    Marlo
                      Gillotti

                  
	 	 	 
	
                    Purchase
                      Price: 

                  	 	
                    One
                      Dollar ($1.00) a share

                  
	 	 	 
	
                    Expiration
                      Date:

                  	 	
                    3:00
                      p.m. Central Time, December 31, 2009, unless terminated sooner
                      under this
                      Warrant.

                  

          

        

      

      

      1.2 Company’s
        Covenants as to Common Stock.
        Warrant
        Shares deliverable on the exercise of this Warrant shall, at delivery, be
        fully
        paid and non-assessable, free from taxes, liens, and charges with respect
        to
        their purchase. The Company shall take any necessary steps to assure that
        the
        par value per share of the Common Stock is at all times equal to or less
        than
        the then current Purchase Price per share of the Common Stock issuable pursuant
        to this Warrant. The Company shall at all times reserve and hold available
        sufficient shares of Common Stock to satisfy all conversion and purchase
        rights
        of outstanding convertible securities, options, and warrants.

      

      1.3 Method
        of Exercise; Fractional Shares.
        Subject
        to the provisions of this Warrant, this Warrant may be exercised, in whole
        or in
        part, at the option of the Registered Owner by (a) surrender of this Warrant
        to
        the Company together with a duly executed Exercise Form, and (b) payment
        of the
        Purchase Price. No fractional shares of Common Stock are to be issued upon
        the
        exercise of this Warrant. In lieu of issuing a fraction of a share remaining
        after exercise of this Warrant as to all full shares covered hereby, the
        Company
        shall either (a) pay therefor cash equal to the same fraction of the then
        current Purchase Price per share or, at its option, (b) issue scrip for the
        fraction, in registered or bearer form approved by the Board of Directors
        of the
        Company, which shall entitle the holder to receive a certificate for a full
        share of Common Stock on surrender of scrip aggregating a full share. Scrip
        may
        become void after a reasonable period (but not less than six months after
        the
        expiration date of this Warrant) determined by the Board of Directors and
        specified in the scrip. In case of the exercise of this Warrant for less
        than
        all the shares available for purchase, the Company shall cancel the Warrant
        and
        execute and deliver a new Warrant of like tenor and date for the balance
        of the
        shares purchasable.

       

      
        
          
          

        

        
          A-1

          
            

          

        

        
          
          

        

      

      
 

      1.4 Adjustment
        of Shares Available for Purchase.
        The
        number of shares available for purchase hereunder and the Purchase Price
        per
        share are subject to adjustment from time to time by the Company as specified
        in
        this Warrant.

      

      1.5 Limited
        Rights of Owner.
        This
        Warrant does not entitle the Registered Owner to any voting rights or other
        rights as a stockholder of the Company, or to any other rights whatsoever
        except
        the rights herein expressed. No dividends are payable or will accrue on this
        Warrant or the Warrant Shares available for purchase hereunder until and
        except
        to the extent that this Warrant is exercised.

      

      1.6 Exchange
        for Other Denominations.
        This
        Warrant is exchangeable, on its surrender by the Registered Owner to the
        Company, for new Warrants of like tenor and date representing in the aggregate
        the right to purchase the number of shares available for purchase hereunder
        in
        denominations designated by the Registered Owner at the time of
        surrender.

      

      1.7 Transfer.
        Except
        as otherwise above provided, this Warrant is transferable only on the books
        of
        the Company by the Registered Owner or by its attorney, on surrender of this
        Warrant, properly endorsed, provided, however, that any transfer or assignment
        shall be subject to the conditions set forth in Section 1.14. 

      

      1.8 Recognition
        of Registered Owner.
        Prior to
        due presentment for registration of transfer of this Warrant, the Company
        may
        treat the Registered Owner as the person exclusively entitled to receive
        notices
        and otherwise to exercise rights hereunder.

      

      1.9 Effect
        of Stock Split, Etc.
        If the
        Company, by stock dividend, split, reverse split, reclassification of shares,
        or
        otherwise, changes as a whole the outstanding Common Stock into a different
        number or class of shares, then:

      

      (a) the
        number and class of shares so changed shall, for the purposes of this Warrant,
        replace the shares outstanding immediately prior to the change; and

      

      (b) the
        Purchase Price and the number of shares available for purchase under this
        Warrant, immediately prior to the date upon which the change becomes effective,
        shall be proportionately adjusted (the price to the nearest cent). Irrespective
        of any adjustment or change in the Purchase Price or the number of shares
        purchasable under this or any other Warrant of like tenor, the Warrants
        theretofore and thereafter issued may continue to express the Purchase Price
        per
        share and the number of shares available for purchase as the Purchase Price
        per
        share and the number of shares available for purchase were expressed in the
        Warrants when initially issued.

       

      
        
          
          

        

        
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      1.10 Effect
        of Merger, Etc.
        If the
        Company consolidates with or merges into another corporation, the Registered
        Owner shall thereafter be entitled on exercise of this Warrant to purchase,
        with
        respect to each share of Common Stock purchasable hereunder immediately before
        the consolidation or merger becomes effective, the securities or other
        consideration to which a holder of one share of Common Stock is entitled
        in the
        consolidation or merger without any change in or payment in addition to the
        Purchase Price in effect immediately prior to the merger or consolidation.
        The
        Company shall take any necessary steps in connection with a consolidation
        or
        merger to assure that all the provisions of this Warrant shall thereafter
        be
        applicable, as nearly as reasonably may be, to any securities or other
        consideration so deliverable on exercise of this Warrant. A sale or lease
        of all
        or substantially all the assets of the Company for a consideration (apart
        from
        the assumption of obligations) consisting primarily of securities is a
        consolidation or merger for the foregoing purposes.

      

      1.11 Notice
        of Adjustment.
        On the
        happening of an event requiring an adjustment of the Purchase Price or the
        shares available for purchase hereunder, the Company shall forthwith give
        written notice to the Registered Owner stating the adjusted Purchase Price
        and
        the adjusted number and kind of securities or other property available for
        purchase hereunder resulting from the event and setting forth in reasonable
        detail the method of calculation and the facts upon which the calculation
        is
        based. The Board of Directors of the Company, acting in good faith, shall
        determine the calculation.

      

      1.12 Notice
        and Effect of Dissolution.
        In case
        a voluntary or involuntary dissolution, liquidation, or winding up of the
        Company (other than in connection with a consolidation or merger covered
        by
        Section 1.10 above) is at any time proposed, the Company shall give at least
        a
        30 day written notice to the Registered Owner. Such notice shall contain:
        (a)
        the date on which the transaction is to take place; (b) the record date (which
        shall be at least 30 days after the giving of the notice) as of which holders
        of
        Common Shares will be entitled to receive distributions as a result of the
        transaction; (c) a brief description of the transaction; (d) a brief description
        of the distributions to be made to holders of Common Stock as a result of
        the
        transaction; and (e) an estimate of the fair value of the distributions.
        On the
        date of the transaction, if it actually occurs, this Warrant and all rights
        hereunder shall terminate.

      

      1.13  Method
        of Giving Notice; Extent Required.
        Notices
        shall be given by first class mail, postage prepaid, addressed to the Registered
        Owner at the address of the Owner appearing in the records of the Company.
        No
        notice to the Registered Owner is required except as specified
        herein.

      

      1.14  Warrant
        is Restricted: Exercise or Transfer Without Registration. This
        Warrant and the Warrant Shares have not been registered under the Securities
        Act
        of 1933 (the “Act”); and are “Restricted Securities” as that term is defined in
        Rule 144 under the Act. The Warrants and the Warrant Shares may not be offered
        for sale, sold or otherwise transferred except pursuant to an effective
        Registration Statement under the Act or pursuant to an exemption from
        registration under the Act, the availability of which is to be established
        to
        the satisfaction of the Company. If, at the time of the surrender of this
        Warrant in connection with any exercise, transfer, or exchange of this Warrant,
        this Warrant (or in the case of any exercise, the Warrant Shares issuable
        hereunder) shall not be registered under the Act and under applicable state
        securities or blue sky laws, the Company may require, as a condition of allowing
        such exercise, transfer, or exchange (a) that the Registered Owner furnish
        to
        the Company a written opinion of counsel, which opinion and counsel are
        reasonably acceptable to the Company, to the effect that such exercise, transfer
        or exchange may be made without registration under the Act and under applicable
        state securities or blue sky laws, and (b) that the Registered Owner execute
        and
        deliver to the Company an investment letter in form and substance acceptable
        to
        the Company. The first holder of this Warrant, by taking and holding the
        same,
        represents to the Company that such holder is acquiring this Warrant for
        investment and not with a view to the distribution thereof.

       

      
        
          
          

        

        
          A-3

          
            

          

        

        
          
          

        

      

      
 

      1.15  Underwriting
        Requirements. In
        connection with any underwritten public offering, the Company shall not be
        required to include any of the shares underlying the Warrants in such
        underwriting unless the Registered Owner accepts the terms of the underwriting
        as agreed upon between the Company and the underwriters for the offering
        (which
        underwriters shall be selected by the Company).

      

      1.16  Cashless
        Exercise. Notwithstanding
        anything to the contrary herein, the Warrants shall be eligible for “cashless
        exercise” if and only if:

      

      (a)
        There
        is no effective registration statement in place with the Securities and Exchange
        Commission covering the Common Stock underlying the Warrants and the Common
        Stock has traded over $2.00 per share for five consecutive days; or

       

      (b)
        Any
        partially- or wholly-owned subsidiary of the Company is sold or receives
        a cash
        payment exceeding $10,000,000 for either a license fee or dispute
        resolution.

      

      If
        a
        cashless exercise is permitted under this section, the Registered Owner may
        elect, in lieu of payment of the Purchase Price in cash, to convert this
        Warrant, in whole or in part, into a number of Warrant Shares determined
        by
        dividing (i) (A) the aggregate Market Value of the Warrant Shares or other
        securities otherwise issuable upon exercise of this Warrant minus (B) the
        aggregate Purchase Price of such Warrant Shares, by (ii) the Market Value
        of one
        Warrant Share. “Market Value” as of any date, means (x) the average of the last
        reported sale prices on the principal trading market for the Common Stock
        for
        the five trading days immediately preceding the date of any such determination,
        or (y) if market value cannot be calculated as of such date on the foregoing
        basis, Market Value shall be the fair market value as reasonably determined
        in
        good faith by the Board of Directors of the Company. For example, if a cashless
        exercise were permitted, the Market Value on the date of exercise was $3.00
        per
        share, and the entire Warrant was being exercised on such date, the Registered
        Owner could elect to exercise this Warrant for 33,333 shares of Common Stock
        on
        a cashless basis [((50,000 x $3.00) - (50,000 x $1.00)), divided by $3.00
        =
        33,333 shares]. The manner of determining the Market Value of the Common
        Stock
        set forth in the foregoing definition shall apply with respect to any other
        security in respect of which a determination as to market value must be made
        hereunder.

      

      1.17  Governing
        Law. THIS
        WARRANT SHALL BE GOVERNED AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE
        INTERNAL LAWS OF THE STATE OF DELAWARE WITHOUT REGARD TO THE BODY OF LAW
        CONTROLLING CONFLICTS OF LAW.

      

      1.18  Amendments.
        This
        Warrant and any provision it may only be amended by an instrument signed
        by the
        Company and the holder.

      

      1.19  Severability
        and Savings Clause.
        If any
        one or more of the provisions contained in this Warrant is for any reason
        (a)
        objected to, contested or challenged by any court, government authority,
        agency,
        department, commission or instrumentality of the United States or any state
        or
        political subdivision thereof, or any securities industry self-regulatory
        organization (collectively, “Governmental Authority”), or (b) held
        to
        be invalid, illegal or unenforceable in any respect, the
        Company and the holder agree to negotiate in good faith to modify such objected
        to, contested, challenged, invalid, illegal or unenforceable provision. It
        is
the
        intention of Company and the holder that there shall be substituted for such
        objected to, contested, challenged, invalid, illegal or unenforceable provision
        a provision as similar to such provision as may be possible and yet be
        acceptable to any objecting Governmental Authority and be valid, legal and
        enforceable. Further, should any provisions of this Warrant ever be reformed
        or
        rewritten by a judicial body, those provisions as rewritten will be binding,
        but
        only in that jurisdiction, on the holder and the Company as if contained
        in the
        original Agreement. The
        invalidity, illegality or unenforceability of any one or more provisions
        of this
        Warrant will not affect the validity and enforceability of any other provisions
        of this Warrant.

       

      
        
          
          

        

        
          A-4

          
            

          

        

        
          
          

        

      

      
 

      Dated
        effective this 14th
        day of
        September, 2006.

      

       

      
        	 	 	 
	 	GABRIEL
                TECHNOLOGIES CORPORATION
	 
 	 
 	 
 
	 	By:  	 
	 	
                

              
	 	
                Name:
                  Keith Feilmeier

                Title: Chief Executive
                  Officer

              

      

       

       

       

      
A-5Durkalewycz Promissory Note

    
      Exhibit
        10.10

       

      GABRIEL
        TECHNOLOGIES CORPORATION

      

      PROMISSORY
        NOTE

      

      

      
        	$130,000.00	
                October
                  9, 2006

              

      

      

      

      FOR
        VALUE
        RECEIVED, the undersigned, Gabriel Technologies Corporation, a Delaware
        corporation (“Company”),
        promises to pay to the order of Michael and Helen Durkalewycz, Joint Tenants
        and
        individuals residing at 2331 S 7th
        Street,
        Omaha NE 68108 (“Lender”),
        the
        principal sum of One Hundred Thirty Thousand Dollars ($130,000.00) (the
“Principal”),
        together with interest on the unpaid principal balance from time to time
        outstanding at a rate per annum equal to nine percent (9.0%) (the “Interest”).
        Further, the Lender will receive a warrant to purchase Twenty Five Thousand
        (25,000) shares of the Company’s common stock at an exercise price of One Dollar
        ($1.00) per share, pursuant to the terms and conditions of a Warrant Certificate
        to be delivered by the Company. All payments on this Note shall be due and
        payable in lawful money of the United States of America at such place as
        Lender
        may from time to time designate at the time provided in Section 1
        below.

      

      1. Payments.
        The
        entire Principal and Interest shall be due and payable on October 19, 2006
        (the
“Maturity
        Date”);
        provided, however, that any part or all of the Principal and Interest may
        be
        voluntarily prepaid in whole or in part at any time. In the event that the
        Company fails to pay the outstanding Principal and any accrued but unpaid
        Interest on this Note on or before the Maturity Date, then the Company agrees
        to
        issue a warrant to Lender to purchase One Hundred Five Thousand (105,000)
        shares
        of the Company’s common stock at an exercise price of $1.00 per share in
        substantially the form attached as Exhibit
        A
        hereto.

      

      2. Attorney’s
        Fees.
        If the
        indebtedness represented by this Note or any part thereof is collected in
        bankruptcy, receivership or other judicial proceedings or if this Note is
        placed
        in the hands of attorneys for collection after default, the Company agrees
        to
        pay, in addition to the principal and interest payable hereunder, reasonable
        attorney’s fees and costs incurred by Lender.

      

      3. Notices.
        Any
        notice, other communication or payment required or permitted hereunder shall
        be
        in writing and shall be deemed to have been given upon delivery.

      

      4. Waivers.
        The
        Company hereby waives presentment, demand for performance, notice of
        non-performance, protest, notice of protest and notice of dishonor. No delay
        on
        the part of Lender in exercising any right hereunder shall operate as a waiver
        of such right or any other right.

      

      5. Assignment.
        This
        Note is not transferable by the Company, whether by sale, pledge or other
        disposition, without the prior written consent of Lender which consent may
        be
        withheld in Lender’s sole discretion, except that the Company may transfer this
        Note without such consent in connection with a merger or other similar
        transaction involving the Company.

      

      6. Governing
        Law.
        This
        Note shall be construed in accordance with the laws of the State of Delaware,
        without regard to the conflicts of laws provisions thereof. Any lawsuit or
        litigation arising under, out of, in connection with, or in relation to this
        Agreement, any amendment thereof, or the breach thereof, shall be brought
        in the
        courts of Omaha, Nebraska, which courts shall have exclusive jurisdiction
        over
        any such lawsuit or litigation.

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      IN
        WITNESS WHEREOF, Gabriel Technologies Corporation has caused this Note to
        be
        executed by its officer thereunto duly authorized.

      

      GABRIEL
        TECHNOLOGIES CORPORATION

      

      

      

      By:
         /s/
        Keith R.
        Feilmeier                                        
 

      Keith
        Feilmeier

      Chief
        Executive Officer

      
        
           

        

        
          2

          
            

          

        

        
           

        

      

      EXHIBIT
        A

      

      FORM
        OF WARRANT

      

      [See
        attached]

       

       

      
        
           

        

        
          A-1

          
            

          

        

        
           

        

      

      The
        securities represented by this certificate have not been registered under
        the
        Securities Act of 1933, as amended, and may not be sold, exchanged or
        transferred in any manner in the absence of such registration or an opinion
        of
        counsel reasonably acceptable to the Company that no such registration is
        required.

       

      

      WARRANT
        CERTIFICATE

      GABRIEL
        TECHNOLOGIES CORPORATION

      INCORPORATED
        UNDER THE LAWS OF

      THE
        STATE OF DELAWARE

      

      

      1.1 Basic
        Terms.
        This
        certifies that, for value received, the registered owner set forth below,
        or its
        registered assigns (“Registered Owner”) is entitled, subject to the terms and
        conditions of this Warrant (this “Warrant”), until the Expiration Date set forth
        below, to purchase 105,000 shares of the Common Stock, par value $0.001 (the
        “Common Stock”), of Gabriel Technologies Corporation, a Delaware corporation
        (the “Company”), from the Company at the Purchase Price shown below, on delivery
        of this Warrant to the Company with an exercise form, as provided by the
        Company
        (an “Exercise Form”), duly executed and payment of the Purchase Price (in cash
        or by certified or bank cashier’s check payable to the order of the Company) for
        each Warrant Share purchased. The term “Warrant Shares,” as used herein, refers
        to the shares of Common Stock purchasable hereunder.

      

      
        	
                Registered
                  Owner:

              	
                Michael
                  and Helen Durkalewycz, Joint Tenants

              
	 	 
	
                Purchase
                  Price: 

              	
                One
                  Dollar ($1.00) a share

              
	 	 
	
                Expiration
                  Date:

              	
                3:00
                  p.m. Central Time, December 30, 2009, unless terminated sooner
                  

                under
                  this Warrant.

              

      

      

      1.2 Company’s
        Covenants as to Common Stock.
        Warrant
        Shares deliverable on the exercise of this Warrant shall, at delivery, be
        fully
        paid and non-assessable, free from taxes, liens, and charges with respect
        to
        their purchase. The Company shall take any necessary steps to assure that
        the
        par value per share of the Common Stock is at all times equal to or less
        than
        the then current Purchase Price per share of the Common Stock issuable pursuant
        to this Warrant. The Company shall at all times reserve and hold available
        sufficient shares of Common Stock to satisfy all conversion and purchase
        rights
        of outstanding convertible securities, options, and warrants.

      

      1.3 Method
        of Exercise; Fractional Shares.
        Subject
        to the provisions of this Warrant, this Warrant may be exercised, in whole
        or in
        part, at the option of the Registered Owner by (a) surrender of this Warrant
        to
        the Company together with a duly executed Exercise Form, and (b) payment
        of the
        Purchase Price. No fractional shares of Common Stock are to be issued upon
        the
        exercise of this Warrant. In lieu of issuing a fraction of a share remaining
        after exercise of this Warrant as to all full shares covered hereby, the
        Company
        shall either (a) pay therefor cash equal to the same fraction of the then
        current Purchase Price per share or, at its option, (b) issue scrip for the
        fraction, in registered or bearer form approved by the Board of Directors
        of the
        Company, which shall entitle the holder to receive a certificate for a full
        share of Common Stock on surrender of scrip aggregating a full share. Scrip
        may
        become void after a reasonable period (but not less than six months after
        the
        expiration date of this Warrant) determined by the Board of Directors and
        specified in the scrip. In case of the exercise of this Warrant for less
        than
        all the shares available for purchase, the Company shall cancel the Warrant
        and
        execute and deliver a new Warrant of like tenor and date for the balance
        of the
        shares purchasable.

      
        
           

        

        
          A-2

          
            

          

        

        
           

        

      

      1.4 Adjustment
        of Shares Available for Purchase.
        The
        number of shares available for purchase hereunder and the Purchase Price
        per
        share are subject to adjustment from time to time by the Company as specified
        in
        this Warrant.

      

      1.5 Limited
        Rights of Owner.
        This
        Warrant does not entitle the Registered Owner to any voting rights or other
        rights as a stockholder of the Company, or to any other rights whatsoever
        except
        the rights herein expressed. No dividends are payable or will accrue on this
        Warrant or the Warrant Shares available for purchase hereunder until and
        except
        to the extent that this Warrant is exercised.

      

      1.6 Exchange
        for Other Denominations.
        This
        Warrant is exchangeable, on its surrender by the Registered Owner to the
        Company, for new Warrants of like tenor and date representing in the aggregate
        the right to purchase the number of shares available for purchase hereunder
        in
        denominations designated by the Registered Owner at the time of
        surrender.

      

      1.7 Transfer.
        Except
        as otherwise above provided, this Warrant is transferable only on the books
        of
        the Company by the Registered Owner or by its attorney, on surrender of this
        Warrant, properly endorsed, provided, however, that any transfer or assignment
        shall be subject to the conditions set forth in Section 1.14. 

      

      1.8 Recognition
        of Registered Owner.
        Prior to
        due presentment for registration of transfer of this Warrant, the Company
        may
        treat the Registered Owner as the person exclusively entitled to receive
        notices
        and otherwise to exercise rights hereunder.

      

      1.9 Effect
        of Stock Split, Etc.
        If the
        Company, by stock dividend, split, reverse split, reclassification of shares,
        or
        otherwise, changes as a whole the outstanding Common Stock into a different
        number or class of shares, then:

      

      (a) the
        number and class of shares so changed shall, for the purposes of this Warrant,
        replace the shares outstanding immediately prior to the change; and

      

      (b) the
        Purchase Price and the number of shares available for purchase under this
        Warrant, immediately prior to the date upon which the change becomes effective,
        shall be proportionately adjusted (the price to the nearest cent). Irrespective
        of any adjustment or change in the Purchase Price or the number of shares
        purchasable under this or any other Warrant of like tenor, the Warrants
        theretofore and thereafter issued may continue to express the Purchase Price
        per
        share and the number of shares available for purchase as the Purchase Price
        per
        share and the number of shares available for purchase were expressed in the
        Warrants when initially issued.

      

      1.10 Effect
        of Merger, Etc.
        If the
        Company consolidates with or merges into another corporation, the Registered
        Owner shall thereafter be entitled on exercise of this Warrant to purchase,
        with
        respect to each share of Common Stock purchasable hereunder immediately before
        the consolidation or merger becomes effective, the securities or other
        consideration to which a holder of one share of Common Stock is entitled
        in the
        consolidation or merger without any change in or payment in addition to the
        Purchase Price in effect immediately prior to the merger or consolidation.
        The
        Company shall take any necessary steps in connection with a consolidation
        or
        merger to assure that all the provisions of this Warrant shall thereafter
        be
        applicable, as nearly as reasonably may be, to any securities or other
        consideration so deliverable on exercise of this Warrant. A sale or lease
        of all
        or substantially all the assets of the Company for a consideration (apart
        from
        the assumption of obligations) consisting primarily of securities is a
        consolidation or merger for the foregoing purposes.

      
        
           

        

        
          A-3

          
            

          

        

        
           

        

      

      1.11 Notice
        of Adjustment.
        On the
        happening of an event requiring an adjustment of the Purchase Price or the
        shares available for purchase hereunder, the Company shall forthwith give
        written notice to the Registered Owner stating the adjusted Purchase Price
        and
        the adjusted number and kind of securities or other property available for
        purchase hereunder resulting from the event and setting forth in reasonable
        detail the method of calculation and the facts upon which the calculation
        is
        based. The Board of Directors of the Company, acting in good faith, shall
        determine the calculation.

      

      1.12 Notice
        and Effect of Dissolution.
        In case
        a voluntary or involuntary dissolution, liquidation, or winding up of the
        Company (other than in connection with a consolidation or merger covered
        by
        Section 1.10 above) is at any time proposed, the Company shall give at least
        a
        30 day written notice to the Registered Owner. Such notice shall contain:
        (a)
        the date on which the transaction is to take place; (b) the record date (which
        shall be at least 30 days after the giving of the notice) as of which holders
        of
        Common Shares will be entitled to receive distributions as a result of the
        transaction; (c) a brief description of the transaction; (d) a brief description
        of the distributions to be made to holders of Common Stock as a result of
        the
        transaction; and (e) an estimate of the fair value of the distributions.
        On the
        date of the transaction, if it actually occurs, this Warrant and all rights
        hereunder shall terminate.

      

      1.13
        Method
        of Giving Notice; Extent Required.
        Notices
        shall be given by first class mail, postage prepaid, addressed to the Registered
        Owner at the address of the Owner appearing in the records of the Company.
        No
        notice to the Registered Owner is required except as specified
        herein.

      

      1.14
        Warrant
        is Restricted: Exercise or Transfer Without Registration. This
        Warrant and the Warrant Shares have not been registered under the Securities
        Act
        of 1933 (the “Act”); and are “Restricted Securities” as that term is defined in
        Rule 144 under the Act. The Warrants and the Warrant Shares may not be offered
        for sale, sold or otherwise transferred except pursuant to an effective
        Registration Statement under the Act or pursuant to an exemption from
        registration under the Act, the availability of which is to be established
        to
        the satisfaction of the Company. If, at the time of the surrender of this
        Warrant in connection with any exercise, transfer, or exchange of this Warrant,
        this Warrant (or in the case of any exercise, the Warrant Shares issuable
        hereunder) shall not be registered under the Act and under applicable state
        securities or blue sky laws, the Company may require, as a condition of allowing
        such exercise, transfer, or exchange (a) that the Registered Owner furnish
        to
        the Company a written opinion of counsel, which opinion and counsel are
        reasonably acceptable to the Company, to the effect that such exercise, transfer
        or exchange may be made without registration under the Act and under applicable
        state securities or blue sky laws, and (b) that the Registered Owner execute
        and
        deliver to the Company an investment letter in form and substance acceptable
        to
        the Company. The first holder of this Warrant, by taking and holding the
        same,
        represents to the Company that such holder is acquiring this Warrant for
        investment and not with a view to the distribution thereof.

      

      1.15
        Underwriting
        Requirements. In
        connection with any underwritten public offering, the Company shall not be
        required to include any of the shares underlying the Warrants in such
        underwriting unless the Registered Owner accepts the terms of the underwriting
        as agreed upon between the Company and the underwriters for the offering
        (which
        underwriters shall be selected by the Company).

      

      1.16
        Cashless
        Exercise. Notwithstanding
        anything to the contrary herein, the Warrants shall be eligible for “cashless
        exercise” if and only if:

      
        
           

        

        
          A-4

          
            

          

        

        
           

        

      

      (a)
        There
        is no effective registration statement in place with the Securities and Exchange
        Commission covering the Common Stock underlying the Warrants and the Common
        Stock has traded over $2.00 per share for five consecutive days; or

       

      (b)
        Any
        partially- or wholly-owned subsidiary of the Company is sold or receives
        a cash
        payment exceeding $10,000,000 for either a license fee or dispute
        resolution.

      

      If
        a
        cashless exercise is permitted under this section, the Registered Owner may
        elect, in lieu of payment of the Purchase Price in cash, to convert this
        Warrant, in whole or in part, into a number of Warrant Shares determined
        by
        dividing (i) (A) the aggregate Market Value of the Warrant Shares or other
        securities otherwise issuable upon exercise of this Warrant minus (B) the
        aggregate Purchase Price of such Warrant Shares, by (ii) the Market Value
        of one
        Warrant Share. “Market Value” as of any date, means (x) the average of the last
        reported sale prices on the principal trading market for the Common Stock
        for
        the five trading days immediately preceding the date of any such determination,
        or (y) if market value cannot be calculated as of such date on the foregoing
        basis, Market Value shall be the fair market value as reasonably determined
        in
        good faith by the Board of Directors of the Company. For example, if a cashless
        exercise were permitted, the Market Value on the date of exercise was $3.00
        per
        share, and the entire Warrant was being exercised on such date, the Registered
        Owner could elect to exercise this Warrant for 70,000 shares of Common Stock
        on
        a cashless basis [((105,000 x $3.00) - (105,000 x $1.00)), divided by $3.00
        =
        70,000 shares]. The manner of determining the Market Value of the Common
        Stock
        set forth in the foregoing definition shall apply with respect to any other
        security in respect of which a determination as to market value must be made
        hereunder.

      

      1.17
        Governing
        Law. THIS
        WARRANT SHALL BE GOVERNED AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE
        INTERNAL LAWS OF THE STATE OF DELAWARE WITHOUT REGARD TO THE BODY OF LAW
        CONTROLLING CONFLICTS OF LAW.

      

      1.18
        Amendments.
        This
        Warrant and any provision it may only be amended by an instrument signed
        by the
        Company and the holder.

      

      1.19
        Severability
        and Savings Clause.
        If any
        one or more of the provisions contained in this Warrant is for any reason
        (a)
        objected to, contested or challenged by any court, government authority,
        agency,
        department, commission or instrumentality of the United States or any state
        or
        political subdivision thereof, or any securities industry self-regulatory
        organization (collectively, “Governmental Authority”), or (b) held
        to
        be invalid, illegal or unenforceable in any respect, the
        Company and the holder agree to negotiate in good faith to modify such objected
        to, contested, challenged, invalid, illegal or unenforceable provision. It
        is
the
        intention of Company and the holder that there shall be substituted for such
        objected to, contested, challenged, invalid, illegal or unenforceable provision
        a provision as similar to such provision as may be possible and yet be
        acceptable to any objecting Governmental Authority and be valid, legal and
        enforceable. Further, should any provisions of this Warrant ever be reformed
        or
        rewritten by a judicial body, those provisions as rewritten will be binding,
        but
        only in that jurisdiction, on the holder and the Company as if contained
        in the
        original Agreement. The
        invalidity, illegality or unenforceability of any one or more provisions
        of this
        Warrant will not affect the validity and enforceability of any other provisions
        of this Warrant.

      
        
           

        

        
          A-5

          
            

          

        

        
           

        

      

      Dated
        this __ day of November, 2006.

      

      

      GABRIEL
        TECHNOLOGIES CORPORATION

      

      

      

      By:
         /s/
        Keith R.
        Feilmeier                                  
 

      Name: Keith
        Feilmeier

      Title: Chief
        Executive Officer

       

      

        A-6

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