Document:

Unassociated Document

    EXHIBIT
      10.25

     

    GABRIEL
      TECHNOLOGIES CORPORATION

    

    PROMISSORY
      NOTE

    

    
      	
            	$200,000.00	
                                                                                                                                                    
                May 21, 2007

            

    

    

    FOR
      VALUE
      RECEIVED, the undersigned, Gabriel Technolol ies Corporation, a Delaware
corporation ("Company"),
      promises
      to pay to the order of L. Mills Tuttle at d Ann S. Tuttle, as
      co-trustees of
      the
      Ann S. Tuttle Revocable Trust Dated June 25, 2002 ("Lender"), the principal
      sum
      of Two Hundred Thousand
      Dollars ($200,000) (the "Principal"),
      without
      interest. Further, Lender will receive a warrant to
      purchase
      Two Hundred Thousand (200,000) shares of the Company's com non stock at an
      exercise price of Fifty Cents ($0.50) 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.

    

    This
      Note
      cancels and replaces in all. respects that certain promissor , note in the
      principal amount
      of
      $100,000 dated January 26, 2007, between the Company and Lender (the
"Old Note"),
      including, without limitation, all of the Company's obligations under the Old
      Note, which will be marked as "cancelled" by the Company.

    

    1.  Payments.
      Four
      Hundred Thousand Dollars ($400,000) ( vhich is the Principal plus an
amount
      equal to 100% of the Principal) shall be due and payable within 10 business
      days
      after the first IP
      Event to
      occur after receipt by the Company of the principal of the loan epresented
      by
      this Note. For purposes
      of this Note, an
      "IP Event" is
      defined as the receipt by the Compa rye or any of its subsidiaries
      of
      a
      minimum of $6,000,000 in net proceeds (in cash or
      the
      fair
      market valueof
      non-cash consideration) from
      (i)
      a licensing, sale, transfer, settlement or other transaction with one or
      more third parties relating to intellectual
      property of the Company or its subsidiaries, or (ii) a merger, consolidation,
      share exchange or
      sale of
      all or substantially all of the stock or assets of the Company or any of its
      subsidiaries.

    

    2.  Right
      to Exchange Note.
      Lender
      shall have the right to surrender and exchange this Note at any time after
      the
      one year anniversary of this Note into a new fixed term promissory note in
      the
principal
      amount of Four Hundred Thousand Dollars ($400,000) (which is :the Principal
      of
      this Note plus an
      amount equal
      to
      100%
      of such Principal), with such new promissory no a (the "New
      Note")
      being
      due and
      payable on or before the one year anniversary of the Exchange Date (a: defined
      below). Lender shall
      exercise
      its right to such surrender and exchange by (i) providing 10 days vtitten notice
      to the Company of the date on which Lender will surrender and exchange this
      Note
      for the New Note (the "Exchange
      Date"),
      and
      (ii) on or before the Exchange Date, deliver the original of the Note to the
      Company. The Company, upon receipt of Lender's
      notice
      and the delivery of the original of this Note by Lender as described
      above, shall deliver to Lender, within 10 business days after the
      Exchange Date,
      the
      New Note (which will be dated and effective on the Exchange Date).

    

    3. 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.

    

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

    

    5. 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

    
      
         

      

      
        -1-

        
          

        

      

      
         

      

    

     

    exercising
      any right hereunder shall operate as a waiver of such right or an a
      other
      right. 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 Oms ha, Nebraska,
      which
      courts shall have exclusive jurisdiction over any such lawsuit or
      litigation.

    

    6.
      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.

    

    7. Delaware
      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.

    

    IN
      WITNESS WHEREOF, Gabriel Technologies Corporation 14kS
      caused
      this Note to be executed by its officer thereunto duly authorized.

    

    GABRIEL
      TECHNOLOGIES CORPORATION 

    

    

    By: /s/
      T.J.
      O’Brien                                                   

    Printed
      Name: T.J.
      O’Brien                                     

    Title: Acting
      COO                                                    

     

    ACKNOWLEDGEMENT:

    

    Lender
      hereby agrees and acknowledges that: (i) Lender is the sole legal and beneficial
      owner and holder of the Old Note, (ii) Lender has not transferred or a. signed
      the Old Note, or any interest therein, nor has it granted the power to do so
      to
      any other person or fiduciary, and (iii) Lender will hold the Company, and
      all
      its successors, assigns and agents, harmless and shall indemnify and defend
      them
      from and against all claims and legal actions, groundless and otherwise, and
      for
      all related costs, including reasonable attorney's foes, that may be incurred
      by
      reason of any of the foregoing being untrue.

    

    

    ACKNOWLEDGED
      AND AGREED:

     

    By:
      /s/ L. Mills
      Tuttle                                      

    L.
      Mills
      Tuttle and Ann S. Tuttle, Trustees

    of
      the
      Ann S. Tuttle Revocable Trust Dated June 25, 2002

     

     

    -2-Warrant Certificate dated May 11, 2007, between the Company and Ted Tryba

    EXHIBIT
      10.26

     

    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 receive I, the registered owner set forth
      below, or its registered
      assigns ("Registered
      Owner")
      is entitled, subject to the termsand conditions
      of this Warrant (this "Warrant”),
      the
      Expiration Date set forth below, to purchase
      200,000
      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, asprovided
      by the Company (an "Exercise Form"), duly executed ar d 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.

            	
              L.
                Mills Tuttle and Ann S. Tuttle, as co-trustees of the Ann S. Tuttle
                Revocable Trust

            
	 	 
	
              Purchase
                Price:

            	
              Fifty
                Cents ($0.50) a share

            
	 	 
	
              Expiration
                Date:

            	
              3:00
                p.m.; Central time, December 30, 2009, unless terminated sooner under
                this
                Warrant.

            

    

     

    This
      Warrant cancels and replaces in all respects that certain warrant issued to
      the
      Registered Owner to purchase 25,000 shares of the Company's Common Stock at
      $1.00 per share dated January 26, 2007 (the "Old Warrant"), including, without
      limitation, all of the Company's obligations under the Old Warrant, which will
      be marked as "cancelled" by the Company.

     

    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.

     

    1.3Method
      of Exercise; Fractional
      Shares.
      Subject to
      the provisions of this Warrant, this Warrant may beexercised,
      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

    
      
        
        

      

      
        -1-

        
          

        

      

      
        
        

      

    

    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 a
      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.

     

    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,#,
      arrant does not a ititle the Registered Owner to any voting rights or other
      rights as. a
      stockholder
      of the Comp any, 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 ur till and except
      to
      the extent that
      this
      Warrant is exercised.

     

    1.6
      Exchange for Other Denominations. This
      Warri nrt is exchangeable, on its surrender by the Registered Owner to the
      Company,for
      new
      Wan ants of like tenor and date representing
      in the aggregate the right to purchase the number of sf ares available for
      purchase
      hereunder in denominations designated by the Registered Owner at hie time of
      surrender.

     

    1.7Transfer.
      Except
      as
      otherwise above provided, this Afarrant is transferable only on the booksof
      the
      Company by the Registered'
      Owner or
      by its at orney, 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 prf sentment for registration of transfer of this Warrant, the Company.
      .may
      treat the Register ad Owner as the person exclusively entitled to receive
      notices aindt~otherwise
      to exercise right; 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 outstandii me latpl'y prior
      to the change; and

     

    (b)
      the
      Purchase Price and the number of shares availa )Ile for purchase under this
      Warrant, immediately prior to the date upon which the
      change
      r
      acomes
      effective,
      shall be proportionately
      adjusted
      (the price
      to .the
      nearest cent). Irrespe ,tive
      of
      any adjustment or change in the Purchase
      Price
      or
the'ndmber
      of
      shares
      purchasal
      111e under this or any other Warrant of like tenor, the Warrants theretofore
      and
      thereafter issue d may continue to express the
      Purchase Price per share and the nu~ C~tr
      of shares
      available fo - (purchase
      as the Purchase
      Price
per
      share
      and
      the number of sfiar*s
      available
      for purcha iua were expressed
      in
      the
      Warrants when initially issued.

     

    1.10
      Effect of Merger, Etc. If
      the
Company
      consolidates
      Arith
      or
      merges into another corporation,
      the
      Registered
      Owner
      shall thereafter be entitled on .-xercise of this Warrant to

    

      
        
          
          

        

        
          -2-

          
            

          

        

        
          
          

        

      

    

     

    purchase,
      with respect
      to
      each
      share of Common Stock purchase ole hereunder immediately before the
      consolidation or merger becomes effective, the securities or other consideration
      to which
      a
      holder of one share of Common lt4s
      k
      is:entitled in the con! colidation or merger without
      any
      change in or payment in addition to
      thes.: Purchase
      Price in effi c:.,t
      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
      I
      V,arrant
      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 st
      batantially all the assets of the Company for a consideration (apart from the
      assumption of oblit rations) consisting primarily of securities is a
      consolidation or merger for the foregoing purposes.

     

    1.11
      Notice of Adjustment. On
      the
      happening of an ev :rat requiring an adjustment of the Purchase Price or the
      shares available for purchase here under, the Company shall forthwith give
      written notice to the Registered Owner stating the ac jested Purchase Price
      and
      the adjusted number and kind of securities or other property avails )le for
      purchase hereunder resulting
      from the event and setting forth in
      reasonable
      detail the
      mi :thod
      of
calculation
      and the
      facts
      upon which the calculation is baser!;.; The Board
      of
      Directors of the Company, acting in good faith, shall determine the
      calculation.

     

    1.12
      Notice and Effect of Dissolution. In
      case :
      voluntary or involuntary dissolution, liquidation, or winding up of the Company
      (other 1 'van in connection with a consolidation or merger covered by Section
      1.10 above) is at any to
      ie
      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 piRce; (b) the record I
      I,:Mte
      (which shall be at least
      30 days
      after the giving of the notice) as of which holders of Commi in Shares will
      be
      entitled to receive distributions as a result of the transaction; (c) a brief
      descrip ion of the transaction; (d) a brief description of the distributions
      to
      be made to holders of Comn oin Stock as a result of the transaction; and (e)
      an
      estimate of the. fair valuie of the distribU ions. On the date of the
      transaction, if it actually occurs, this Wa~rant and'all'rights
      hereunder shall terminate.

     

    1.13
      Method of Giving Notice; -Extent Required. Nc
      ticr;es shall be given by first class mail, postage prepaid, addressedI.to`Ihe
      Registered Owner a ithe address of the Owner appearing in the records of the
      Company. No notice to the Registers d Owner is required except as specified
      herein.

     

    1.14
      Warrant is
      Restricted:
      Exercise or Transfer W
      thout
Registration.
      This
      Warrant and the Warrant Shares have not been registered under the >ecurities
      Act of 1933 (the "Act");
      and
      are "Restricted Securities" as that term is defined in RL
      Is:~
144
      under
      the
      Act. The Warrants,
      and the Uz=a;A--
      Rhares
      may not be `.offered _for_saie
      -sc Icll.-oroti:WC146a-transferred sexcep
      pursuant - - - e iV0 Registration Statemen -under
      a
      rsuant -to
      an
      exemption from registration under the Act, the availability of which k; 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 n the case of any exercise, the Warrant Shares issuable
      hereunder) shall not be registered tinder the Act and under applicable state
      securities or blue sky:.Iws,
      the_
      Company may require, as a condition of allowing such exercise,
      transfer,
      or exgh..*~ge.

     

    (a)
      that
      the
      Regisi aged
      Owner
      furnish to the Company
      a
      written opinion of counsel, whichi opinion and counsel a e: reasonably
      acceptable to
      the
Company,
      to
      the
      effect that such exercise; transfer or excha ige may be made without
registration
      under the Act and under applicable state securities or bit e sky laws, and
      (b)
      that the
      Registered Owner execute and deliver to the Company an invs stment letter in
      form and substance acceptable to the Company. The first holder of this Wa rant,
      by taking and holding

     

    
      
        
          
          

        

        
          -3-

          
            

          

        

        
          
          

        

      

    

    

    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
      wi h 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
      underw,iters
      for
      the offering (which
      underwriters shall be selected by the Company).

     

    1.16
      Cashless Exercise. Notwithstanding
      anything t)
      the
      contrary herein, the

     

    Warrants
      shall be eligible for "cashless exercise" if and only it

     

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

     

    (b)  Any
      partially- or wholly-owned''sUbsidiary of the Compan r
      is
      sold
      or receives a cash payment exceeding $10,000,000 for either a-license fee or
      dispute rest It.dion.

     

    If
      a
      cashless exercise is permitted under this section, the Registerec 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 aggi egate Market Value of the Warrant
      Shares or other securities otherwise issuable upon exerc-;is : of this Warrant
      minus (B) the aggregate Purchase Price of such Warrant Shares, by (ii) the
      ht.
      arket Value of one Warrant Share. "Market Value" as of any date, means (x)
      the
      average of the lust 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 r iarket value as reasonably determined in good faith by the Board
      d
      Directors
      of the Company. For example, if a cashless exercise
      were permitted, the Market Valpe,.ora
      the date
      of exercise
      w
      a.s
      $3.00 per share, and the
      entire
      Warrant was being exercised on. ..date,, the Registered 0 rner could elect
      to
      exercise this Warrant for 166,666 shares of Commoid Stock
      on
      a cashless rasis [((200,000 x $3.00) - (200,000 x $0.50)), divided by $3.00
      =
      166,666 shares]. The manne r of determining the Market Value of the Common
      Stock
      set forth in the foregoing definition shec
      II 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 I q
      TERNAL
      LAWS OF THE STATE OF_DELAWARE
      WITHOUT
REGAR10 -Z0
      CONTROLLING
      LAW.

     

    1.18Amendments:
      This
      WWrant and, any provision it n <ay only be amended by an instrument
      signed by the Company and•the holder.

     

    1.19 Severability
      and Savilip"'i)
      Clause.
      If
      any
one
      or
      more
      of the provisions contained
      in this Warrant is for any
      reas6K(3):'otijdcted 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
      securitics industry self-regulatory organization (collectively,
      "Governmental
      Authority"), or (b) hel i to be invalid, illegal or unenforceable in any
      respect, the Company and the holder agree
      t
      )
negotiate
      in
      good
      faith to modify
      such objected
      to,
      contested, challenged, invalid, illegal or ur Bnforceable
      provision.
      It is
      the
      intention of Company
      and
      the
      holder that there shall be subst
      tuted
      for
      such objected
      to,

    

      
        
          
          

        

        
          -4-

          
            

          

        

        
          
          

        

      

    

     

    contested,
      challenged, invalid, illegal or..urlenforceable provision a
      1 revision
      as similar to such provision as
      may be
      possible
      and yet be: cp ptable
      to
      any objecting overnmental
      Authority and
      be
      valid,
      legal and
      enforceable.
      Further, should
      any
      provisions
      of this' 11'arrant ever be reformed
      or
      rewritten
      by a judicial body,
      those provisions as
      rewritten
      will be
      bindinc
      ,
      but only in
      that jurisdiction,
      on the
      holder and the Company as if contained in the original Agreerr ent. The
      invalidity, illegality or unenforceability of any one or more provisions of
      this
      Warrant wi I not affect the validity and enforceability of any other provisions
      of this Warrant.

     

     

    Dated
      this 21st
      day of
      May, 2007.

     

    

     

    GABRIEL
      TECHNOLOGIES CORPORATION 

    

    

    By: /s/
      T.J.
      O’Brien                                                  

    Name:
      T.J.
      O’Brien        
                                          

    Title: Acting
      COO                                                   

    

     

    ACKNOWLEDGEMENT:

     

    Registered
      Owner hereby agrees and acknowledges that: i) Registered Owner is the sole
      legal
      and beneficial owner and holder of the Old Warrant, (ii) Registered Owner has
      not transferred or assigned the Old Warrant, or any interest therein, nor has
      it
      granted the power to do
      so
      to any other
      person
      or
      fiduciary, and
      (iii)
      Registered Owner will
      hold
      the Company, and all
      its
      successors, assigns and agents, harmless and shall indemnify and defend them
      from and -against all claims and
      legal
      actions, groundless and otherwise, and for all related costs, including
      reasonable attorney's
      fees,
      that:;rrray
      be
      incurred by
      reaE
      on of any of the foregoing being
      untrue.

     

    

     

    ACKNOWLEDGED
      AND AGREED:

    By:
      /s/ L. Mills
      Tuttle                                     

    L.
      Mills
      Tuttle and Ann S. Tuttle, Trustees

    of
      the
      Ann S. Tuttle Revocable Trust Dated June 25, 2002

     

     

    -5-

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