Document:

<PAGE>

EXHIBIT 10.2

                   AMENDED AND RESTATED FORBEARANCE AGREEMENT

         THIS AMENDED AND RESTATED FORBEARANCE AGREEMENT (this "AGREEMENT") is
entered into as of September 24, 2009 between Ivivi Technologies, Inc., a New
Jersey corporation (the "COMPANY"), and Emigrant Capital Corp, a Delaware
corporation (the "LENDER"). All capitalized terms used herein and not otherwise
defined shall have the meanings ascribed to such terms in the Loan Agreement
dated as of April 7, 2009 between the Company and the Lender (the "LOAN
AGREEMENT").

                                    RECITALS
                                    --------

         A. The Company and the Lender have entered into the Loan Agreement.

         B. An Event of Default has occurred (or shall occur) (i) under Section
9.1(i) of the Loan Agreement as a result of the Company's failure to repay the
principal of the Loans on the Maturity Date, (ii) under Section 9.1(c) of the
Loan Agreement as a result of the Company's failure to deliver to the Lender
within the time period specified in Section 8.1(c)(ii)of the Loan Agreement the
quarterly financial information required by such Section 8.1(c)(ii) for the
fiscal quarter ended June 30, 2009, (iii) under Section 9.1(c) of the Loan
Agreement as a result of the Company's failure to deliver to the Lender within
the time period specified in Section 8.1(c)(iii) of the Loan Agreement the
monthly financial information required by such Section 8.1(c)(iii) for July 2009
(and an Event of Default will occur under Section 9.1(c) of the Loan Agreement
as a result of the Company's expected failure to deliver to the Lender within
the time period specified in Section 8.1(c)(iii) of the Loan Agreement the
monthly financial information required by such Section 8.1(c)(iii) for August
and September 2009) and (iv) under Section 9.1(b) of the Loan Agreement as a
result of the Company's failure to file its quarterly report on Form 10-Q within
the time period specified by applicable law, as required by Section 8.1(f) of
the Loan Agreement (the Events of Default described in the foregoing clauses
(i), (ii), (iii) and (iv) are hereinafter referred to collectively as the
"SPECIFIED DEFAULTS").

         C. The Company and the Lender have heretofore entered into a
Forbearance Agreement, dated as of August 31, 2009 (as amended by that certain
letter agreement, dated September 9, 2009, that certain letter agreement, dated
September 14, 2009, and that certain letter agreement, dated September 16, 2009,
the "ORIGINAL FORBEARANCE AGREEMENT").

         D. The Company, Ivivi Technologies, LLC and Ajax Capital LLC are,
contemporaneously with the execution of this Agreement, entering into an Asset
Purchase Agreement, dated as of even date hereof (the "PURCHASE Agreement").

         E. In connection with the entry by the Company into the Purchase
Agreement, the Company has requested that the Original Forbearance Agreement be
amended and restated to provide that, among other things, the Lender agrees to
forbear for the period of time set forth below from exercising its rights and
remedies arising solely in connection with the Specified Defaults.

         F. The Lender has agreed to do so, but only pursuant to the terms and
conditions set forth herein.

<PAGE>

                                    AGREEMENT
                                    ---------

         NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree that the
Original Forbearance Agreement be, and hereby is, amended and restated in its
entirety as herein set forth:

         1. ESTOPPEL, ACKNOWLEDGEMENT AND REAFFIRMATION. The Company hereby
acknowledges and agrees that (i) the Specified Defaults currently exist and have
not been waived by the Lender, (ii) the Company is indebted and liable to the
Lender in the aggregate principal amount of $2,500,000.00 in respect of the
Loans, plus interest, fees, expenses (including but not limited to attorneys'
and financial advisors' fees that are reimbursable under the Loan Agreement),
charges and all other obligations incurred in connection therewith as provided
in the Loan Agreement or any Loan Document, and (iii) such amounts outstanding
under the Loan Agreement constitute valid and subsisting obligations of the
Company to the Lender that are not subject to any credits, offsets, defenses,
claims, counterclaims or adjustments of any kind. The Company hereby (i)
acknowledges and affirms its obligations under the Loan Documents to which it is
a party, (ii) acknowledges and affirms the Liens created and granted by the
Company in the Loan Documents and (iii) agrees that this Agreement shall in no
manner adversely affect or impair such Liens.

         2. FORBEARANCE. Subject to the terms and conditions set forth herein,
the Lender hereby agrees that, during the period commencing on the date hereof
to (but excluding) the earlier of (a) November 30, 2009 and (b) the date that a
Forbearance Termination Event occurs (such period, the "FORBEARANCE PERIOD"),
the Lender shall forbear from (i) declaring the Loans, all interest thereon and
all other amounts payable under the Loan Documents to be due and payable as a
result of the occurrence of the Specified Defaults and (ii) instituting any
judicial or non-judicial action or proceeding to enforce or obtain payment of
the Loans or to enforce the Lender's Liens as a result of the Specified
Defaults. The Borrower agrees that, during the Forbearance Period, the
outstanding principal amount of the Note shall bear interest at a rate per annum
equal to the lesser of (i) 18% and (ii) the maximum rate permitted by law.
Nothing set forth herein or contemplated hereby is intended to constitute an
agreement by the Lender to forbear from exercising any of the rights or remedies
available to it under the Loan Documents or under applicable law (all of which
rights and remedies are hereby expressly reserved by the Lender) with respect to
the Specified Defaults upon or after the termination of the Forbearance Period.
In addition, nothing herein shall be construed to constitute an agreement by the
Lender to forbear from exercising any rights and remedies available to it under
the Loan Documents as a result of any Default or Event of Default that may exist
on or after the date hereof, other than the Specified Defaults. Except as
expressly set forth in this Agreement, this Agreement shall not operate as a
waiver, amendment or modification of any Loan Document.

         3. FORBEARANCE TERMINATION EVENTS. As used herein, a "FORBEARANCE
TERMINATION EVENT" shall mean the occurrence of any of the following: (i) any
failure by the Company to comply with any of the terms of this Agreement, (ii)
the exercise of any remedies by any lender (or the administrative or collateral
agent on behalf of such lender) with respect to any other Indebtedness for
borrowed money of the Company, (iii) the entry of any final judgment or
settlement of any lawsuit or proceeding by or on behalf of a holder or holders
of any other Indebtedness for borrowed money of the Company against the Company
to receive payments in connection with such Indebtedness, (iv) the making of any

                                      -2-
<PAGE>

payment made by the Company or any of its subsidiaries (a) in cash in respect of
any Indebtedness for borrowed money of the Company other than the Loans or (b)
of an extraordinary nature to members of the Company's management, including,
without limitation, bonuses or other forms of additional cash compensation, (v)
the Closing (as defined in the Purchase Agreement) of the transactions
contemplated by the Purchase Agreement, (vi) the Company failing to consummate
the Closing (as defined in the Purchase Agreement) within three business days
following the receipt of the Company Shareholder Approval (as defined in the
Purchase Agreement), or (vii) the termination or abandonment of the Purchase
Agreement by any party thereto (whether pursuant to Article VIII of the Purchase
Agreement or otherwise).

         4. REPRESENTATIONS AND WARRANTIES. The Company hereby represents and
warrants to the Lender that:

              (a) Upon giving effect to this Agreement (a) no Default or Event
         of Default exists (other than the Specified Defaults), (b) all of the
         representations and warranties set forth in the Security Documents or
         in Sections 5.1, 5.4, 5.5, 5.7 and 5.27 of the Loan Agreement are true
         and correct in all material respects as of the date hereof (except for
         those that expressly state that they are made as of an earlier date, in
         which case they are true and correct as of such earlier date), and (c)
         all of the representations and warranties of the Company set forth in
         the Purchase Agreement are true and correct in all respects as of the
         date hereof (except to the extent any such representation or warranty
         speaks as of a specific date, in which case it shall continue to be
         true and correct as of such date); and

              (b) The execution, delivery and performance by the Company of this
         Agreement has been duly authorized by all necessary corporate or other
         organizational action, and do not and will not: (a) contravene the
         terms of any of its organizational documents; (b) conflict with or
         result in any breach or contravention of, or result in or require the
         creation of any Lien under, or require any payment to be made under (x)
         any contractual obligation to which the Company is a party or affecting
         the Company or its properties or (y) any order, injunction, writ or
         decree of any Governmental Authority or any arbitral award to which the
         Company or its property is subject; or (c) violate any applicable law.
         The Company is in compliance with all contractual obligations referred
         to in clause (b)(x) above, except to the extent that failure to do so
         could not reasonably be expected to have a Material Adverse Effect. No
         approval, consent, exemption, authorization, or other action by, or
         notice to, or filing with, any Governmental Authority or any other
         person is necessary or required in connection with the execution,
         delivery or performance by, or enforcement against the Company of this
         Agreement.

         5. COVENANTS. The Company hereby covenants and agrees that:

              (a) The Company will take all actions necessary to satisfy all of
         the conditions to the Closing (as defined in the Purchase Agreement)
         which are conditions to Ivivi Technologies, LLC's obligation to close
         as soon as reasonably practicable following the date hereof;

                                      -3-
<PAGE>

              (b) The Company will take all actions necessary to obtain the
         Company Shareholder Approval (as defined in the Purchase Agreement) as
         soon as reasonably practicable following the date hereof;

              (c) The Company will take all actions necessary to cause the
         Closing (as defined in the Purchase Agreement) to occur within three
         business days following the receipt of the Company Shareholder Approval
         (as defined in the Purchase Agreement);

              (d) The Company will comply with each of, and will not breach or
         violate any of, the covenants and agreements of the Company set forth
         in the Purchase Agreement;

              (e) The Company will not amend, supplement, restate or otherwise
         modify the Purchase Agreement in any manner, and will not consent to or
         otherwise approve any of the foregoing, in each case, without the
         Lender's prior written consent;

              (f) The Company will not waive, surrender or abandon any of its
         rights under the Purchase Agreement without the Lender's prior written
         consent; and

              (g) The Company will not terminate or abandon, and the Company
         will not consent to or otherwise approve any termination or abandonment
         of, the Purchase Agreement (whether pursuant to Article VIII of the
         Purchase Agreement or otherwise). Notwithstanding the foregoing; this
         clause (g) shall not restrict the ability of the Company to terminate
         the Purchase Agreement pursuant to Section 8.1(c)(ii) of the Purchase
         Agreement; provided that (i) the Company shall have provided to the
         Lender a true and complete copy of the Superior Proposal (as such term
         is defined in the Purchase Agreement) prior to its termination of the
         Purchase Agreement pursuant to Section 8.1(c)(ii) of the Purchase
         Agreement and (ii) the Lender shall be satisfied, in its sole
         discretion, that (x) the closing of the transaction contemplated by the
         Superior Proposal will occur prior to November 30, 2009, and (y) upon
         the closing of the transaction contemplated by the Superior Proposal,
         the Company will repay in cash in full the Loans, all interest thereon
         and all other amounts due and payable pursuant to the Loan Documents
         (the "PAYOFF AMOUNT"). In such event, the Superior Proposal shall be
         substituted for the Purchase Agreement for purposes of this Agreement.

         6. FORFEITURE AND CANCELLATION OF WARRANTS. In the event that (x) the
transactions contemplated by the Purchase Agreement shall close on or prior to
the expiration or termination of the Forbearance Period as amended from time to
time in accordance with this Agreement, if applicable, and (y) concurrently with
the closing of such transactions, the Lender shall receive repayment or payment,
as applicable, in full of all Loans, all interest thereon and all other amounts
due and payable pursuant to the Loan Documents, the Lender hereby acknowledges
and agrees that, effective concurrently with the repayment or payment, as
applicable, of the amounts specified in CLAUSE (Y) above, that certain Warrant
No. W-1, dated April 7, 2009, issued by the Company to the Lender, and all
rights of the Lender thereunder, shall be forfeited and cancelled.

                                      -4-
<PAGE>

         7. EXCESS AMOUNT. In the event that the transactions contemplated by
the Purchase Agreement or any Superior Proposal shall be consummated and, in
connection therewith, the Company shall receive a purchase price in excess of
$3,150,000 (the amount by which such purchase price exceeds $3,150,000, the
"EXCESS AMOUNT"), the Company agrees to pay to the Lender, on the date of the
closing of the transactions contemplated by the Purchase Agreement or such
Superior Proposal, in addition to all amounts payable under, or in respect of,
the Loans, the Note and the other Loan Documents, an amount in cash equal to
lesser of (x) 20% of the Excess Amount or (y) $175,000 (such payment, the
"EXCESS AMOUNT PAYMENT"); provided, however, that, in the event that, pursuant
to the terms of the Purchase Agreement or such Superior Proposal, the Excess
Amount is payable to the Company in the form of stock or other equity interests
rather than in cash, then, so long as the Lender shall receive, on the date of
the closing of the transactions contemplated by the Purchase Agreement or such
Superior Proposal, an amount in cash equal to the Payoff Amount in full
satisfaction of the Company's obligations to the Lender in respect of the Loans
and all interest therein, the Company may make the Excess Amount Payment to the
Lender in respect thereof in the form of such stock or other equity interests
received by the Company or its shareholders (with such stock or other equity
interests being valued, and the calculation of the Excess Amount payable to the
Company in respect thereof being determined, in good faith by the Board of
Directors of the Company).

         8. RELEASE. In partial consideration of the Lender's willingness to
enter into this Agreement, the Company hereby releases the Lender and its
officers, affiliates, employees, representatives, agents, financial advisors,
counsel and directors from any and all actions, causes of action, claims,
demands, damages and liabilities of whatever kind or nature, in law or in
equity, now known or unknown, suspected or unsuspected to the extent that any of
the foregoing arises from any action or failure to act in connection with the
Loan Documents on or prior to the date hereof.

         9. EXPENSES. The Company agrees to pay, immediately upon demand or
invoice, all reasonable out-of-pocket costs and expenses incurred by the Lender
in connection with the preparation of this Agreement and any amendments,
modifications or waivers of the provisions of any Loan Document or incurred by
the Lender in connection with the enforcement or protection of its rights under
this Agreement, the Loan Agreement or any other Loan Document, including in each
case the fees and disbursements of any counsel acting on behalf of the Lender.

         10. SUCCESSOR AND ASSIGNS. The provisions of this Agreement shall bind
and inure to the benefit of the respective successors, assigns, heirs, executors
and administrators of the parties hereto.

         11. REMEDIES. The Company agrees that irreparable damage to the Lender
would occur in the event that any of the provisions of this Agreement were not
performed in accordance with its specific terms or were otherwise breached. It
is accordingly agreed that the Lender shall be entitled to seek an injunction or
injunctions to prevent breaches of this Agreement and to seek to enforce
specifically the terms and provisions of this Agreement, such remedies being in
addition to any other remedy to which the Lender is entitled at law or in
equity. The Company hereby agrees that monetary damages would not be adequate
compensation for any loss incurred by reason of a breach by it of the provisions
of this Agreement and hereby agrees to waive the defense in any action for
specific performance that a remedy at law would be adequate.

                                      -5-
<PAGE>

         12. ENTIRETY. This Agreement and the other Loan Documents embody the
entire agreement between the parties and supersede all prior agreements and
understandings, if any, relating to the subject matter hereof. This Agreement
represents the final agreement between the parties and may not be contradicted
by evidence of prior, contemporaneous or subsequent oral agreements of the
parties. There are no oral agreements between the parties.

         13. COUNTERPARTS; FACSIMILE SIGNATURES. This Agreement may be executed
in one or more counterparts, each of which shall be deemed to be an original,
but all of which shall be one and the same document. This Agreement may be
executed by facsimile signatures or by delivery of an executed signature page
via electronic mail.

         14. SECTION HEADINGS. The section headings are for the convenience of
the parties and in no way alter, modify, amend, limit, or restrict the
contractual obligations of the parties.

         15. SEVERABILITY. The invalidity or unenforceability of any provision
of this Agreement shall not affect the validity or enforceability of any other
provision of this Agreement.

         16. GOVERNING LAW. This Agreement shall be governed by, and construed
and enforced in accordance with, the laws of the State of New York, excluding
conflict of laws principles that would cause the application of laws of any
other jurisdiction.

         17. LOAN DOCUMENT. This Agreement is a Loan Document for all purposes.

                                      -6-
<PAGE>

         IN WITNESS WHEREOF, the parties hereto have caused this Amended and
Restated Forbearance Agreement to be duly executed as of the date first above
written.

                                    IVIVI TECHNOLOGIES, INC.

                                    By:  /s/ Andre' DiMino
                                         ---------------------------------------
                                         Name: Andre' DiMino
                                         Title: Executive Vice President

                                    EMIGRANT CAPITAL CORP.

                                    By:  /s/ Kenneth L. Walters
                                         ---------------------------------------
                                         Name: Kenneth L. Walters
                                         Title: Senior Managing Director

         [Signature Page to Amended and Restated Forbearance Agreement]

                                      -7-gabriel_8k-ex1001.htm

EXHIBIT 10.01

PROMISSORY NOTE PURCHASE AGREEMENT

THIS PROMISSORY NOTE PURCHASE AGREEMENT (this “Agreement”) is made as of August 21, 2009 by and among Gabriel Technologies Corporation, a Delaware corporation (the “Company”),
and the investors listed on the Schedule of Investors attached hereto (each, an “Investor” and collectively, the “Investors”).

 

WHEREAS, the Company desires to raise capital of up to $300,000 pursuant to this Agreement (the “Financing”);

 

WHEREAS, the Investors desire to purchase, and the Company desires to sell to each initial Investor (each an “Initial Investor”) who desires to participate in the Initial Closing (as defined below),
a Promissory Note in the form attached hereto as Exhibit A (with all such Promissory Notes issued in the Initial Closing or any Interim Closing (as defined below) referred to herein individually as a “Note” and collectively as the “Notes”) in the principal amount set forth opposite such Investor’s name on Schedule A),
upon the terms and conditions set forth in this Agreement; and

WHEREAS, subsequent to the Initial Closing and until such time as the Company has (a) sold Notes in the aggregate principal amount of $300,000 or, (b) in its discretion, determined that the offering of the Notes should be terminated (the “Open
Investment Period”), the Company desires to offer and sell additional Notes to additional parties that elect to participate in the Financing (the “Additional Investors”), each of whom would become an Investor pursuant to this Agreement, at one or more Interim Closings (as defined below) in accordance with the terms and conditions set forth in this Agreement.

NOW, THEREFORE, in consideration of the foregoing premises and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Company and the Investors hereby agree as follows:

 

1.      Purchase and Sale of Notes; Closings.

 

1.1  Sale and Issuance of Notes to Initial Investors at Initial Closing.  Subject to the terms and conditions of this Agreement, the initial purchase and sale of the Notes shall take place at the principal office of the Company
(the “Closing Location”), at 10:00 A.M., on August 21, 2009 (which time and place are designated as the “Initial Closing”).  At the Initial Closing, the Company shall deliver to each Initial Investor the original Note that such Initial Investor is purchasing at the Initial Closing upon confirmation of receipt of payment of the purchase price therefor,
which purchase price shall equal the principal amount of the Note purchased (the “Purchase Price”) and shall be paid in cash by wire transfer.

 

1.2  Sale and Issuance of Notes at Interim Closings.  Subject to this Section 1.2, after the Initial Closing, the Company may sell additional Notes to Additional Investors at one or more interim closings (each an “Interim
Closing,” and collectively referred to herein along with the Initial Closing as the “Closings,” or, as applicable, individually as a “Closing”), provided that any such sale is pursuant to this Agreement and any such Interim Closing occurs on or before the end of the Open Investment Period.  Any Additional Investor purchasing a Note at
any Interim Closing shall become a party to this Agreement in full capacity as an “Investor” in this Agreement, as if such person had purchased Notes at the Initial Closing by executing and delivering to the Company a counterpart signature page to this Agreement.  The representations and warranties of the Company set forth in Section 2 hereof shall speak as of the date of each Closing, and the representations and warranties of each applicable Additional Investor in Section 3 hereof shall
speak as of the date of the applicable Closing.  At each Interim Closing, (i) this Agreement, including without limitation the Schedule of Investors attached hereto, may be amended by the Company without the consent of the Investors to include any Additional Investors as parties hereto and to add each Additional Investor and the principal amount of the Note being purchased by such Additional Investor to the Schedule
of Investors attached hereto, and (ii) the Company shall deliver to each Additional Investor the original Note that such Additional Investor purchases at such Interim Closing upon confirmation of receipt of payment of the Purchase Price therefor, which Purchase Price shall equal the principal amount of the Note purchased, in cash by wire transfer.  Any Notes sold pursuant to this Section 1.2 shall be deemed to be “Notes” for all purposes under this Agreement.

 

 

 

1

 

 

2.      Representations and Warranties of the Company.  The Company represents and warrants the following:

 

2.1  Organization, Good Standing and Qualification.  The Company is a corporation duly organized, validly existing and in good standing under the laws of the State of Delaware.  The Company is duly qualified to transact
business and is in good standing in each jurisdiction in which the failure to so qualify would have a material adverse effect on its business or properties.

 

2.2  Authorization.  All corporate action on the part of the Company, its officers, directors and stockholders necessary for the authorization, execution and delivery of this Agreement and the Notes, the performance of all obligations
of the Company hereunder and under the Notes, and the authorization, sale and issuance of the Notes being sold hereunder, has been taken or will be taken prior to the Initial Closing.  This Agreement and the Notes constitute valid and legally binding obligations of the Company, enforceable in accordance with their respective terms, except (i) as limited by applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors’
rights generally, and (ii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies.

 

2.3  Offering.  Subject in part to the truth and accuracy of each Investor’s representations set forth in Section 3 of this Agreement, the issuance and sale of the Notes as contemplated by this Agreement are intended to be exempt
from the registration requirements of the Securities Act of 1933, as amended (the “Securities Act”); and

 

2.4  Compliance With Other Instruments.  The Company is not in material violation of any provision of its Certificate of Incorporation as amended to date, or Bylaws nor, to its knowledge, will the execution and performance of this
Agreement or the Notes constitute a violation or breach of any other agreement between the Company and any other person or entity.

 

3.      Representations and Warranties of the Investors.  Each Investor, severally and not jointly, hereby represents, warrants and covenants that:

 

3.1  Authorization.  Such Investor has full power and authority to enter into this Agreement, and this Agreement is a legal, valid and binding agreement of such Investor, enforceable in accordance with its terms.

 

3.2  Purchase Entirely For Own Account.  This Agreement is made with such Investor in reliance upon such Investor’s representations to the Company, which by such Investor’s execution of this Agreement such Investor hereby
confirms, that the Notes to be received by such Investor will be acquired for investment for such Investor’s own account, not as a nominee or agent, and not with a view to the resale or distribution of any part thereof, and that such Investor has no present intention of selling, granting any participation in or otherwise distributing the same.  By executing this Agreement, such Investor further represents that such Investor does not have any contract, undertaking, agreement or arrangement with
any person to sell, transfer or grant participations to such person or to any third person, with respect to the Note(s).

 

 

 

2

 

 

3.3  Disclosure of Information.  Such Investor has received all the information it requested from the Company for deciding whether to purchase the Notes.  Such Investor further represents that it has had an opportunity to ask
questions and receive answers from the Company regarding the terms and conditions of the offering of the Notes and the business, properties, prospects, litigation matters, and financial condition of the Company, including but not limited to information relating to litigation the Company is currently engaged in with Qualcomm Inc.

 

3.4  Investment Experience.  Such Investor is an investor in securities of companies of this type and acknowledges that it is able to fend for itself, can bear the economic risk of its investment, and has such knowledge and experience
in financial or business matters that it is capable of evaluating the merits and risks of the investment in the Notes.  If other than an individual, such Investor also represents it has not been organized for the purpose of acquiring the Notes.

 

3.5  Accredited Investor.  Such Investor 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.

 

3.6  Restricted Securities.  Such Investor understands that the Notes to be purchased hereunder are characterized as “restricted securities” under the federal securities laws inasmuch as they are being acquired from the Company
in a transaction not involving a public offering and that under such laws and applicable regulations such Notes may be resold without registration under the Securities Act only in certain limited circumstances.  In the absence of an effective registration statement covering the Notes or an available exemption from registration under the Securities Act, the Notes must be held indefinitely.  In this connection, such Investor represents that it is familiar with SEC Rule 144 promulgated under
the Securities Act, as presently in effect, and understands the resale limitations imposed thereby and by the Securities Act, including without limitation the Rule 144 condition that current information about the Company be available to the public.  Such information is not now available.

 

3.7  Legends.  Such Investor understands and acknowledges that each Note shall be endorsed with the legend set forth below:

 

THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY STATE SECURITIES LAWS AND MAY NOT BE OFFERED, SOLD, PLEDGED, OR OTHERWISE TRANSFERRED OR DISPOSED OF UNLESS AND UNTIL THIS NOTE IS
REGISTERED UNDER THE SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS OR AN EXEMPTION FROM SUCH REGISTRATION IS AVAILABLE.

 

3.8  True and Correct Information.  All information that Investor has provided or caused to be provided to the Company in connection with the purchase of the Notes hereunder is correct and complete as of the date set forth on the Investor’s
signature page of this Agreement.

 

3.9  Reliance.  Such Investor understands that the acceptance of this Agreement by the Company will be based, in part, on the Investor’s representations, warranties, covenants and acknowledgements set forth in this Section 3.  The Investor
agrees to indemnify the Company from any and all claims, losses, damages and expenses (including without limit attorneys’ fees and disbursements) arising out of any alleged material breach of this Agreement by the Investor or material inaccuracy of any representation or warranty by the Investor.

 

 

 

3

 

 

3.10  Further Limitations on Disposition.  Without in any way limiting the representations set forth above, such Investor further agrees not to make any disposition of all or any portion of the Notes unless and until:

 

(a)  Such transferee has agreed in writing for the benefit of the Company to be bound by this Agreement, and

 

(b)  Such Investor shall have notified the Company in writing of the proposed disposition, and shall have furnished the Company with a detailed statement of the circumstances surrounding the proposed disposition, and if requested by the Company, such Investor shall have furnished the Company with an opinion
of counsel, reasonably satisfactory to the Company that such disposition will not require registration under the Securities Act.

 

3.11  Tax Advisors.  Such Investor has reviewed with such Investor’s own tax advisors the foreign, federal, state and local tax consequences of this investment, where applicable, and the transactions contemplated by this Agreement.  Each
such Investor is relying solely on such advisors and not on any statements or representations of the Company or any of its agents and understands that each such Investor (and not the Company) shall be responsible for such Investor’s own tax liability that may arise as a result of this investment or the transactions contemplated by this Agreement.

 

3.12  Investor Review.  Such Investor acknowledges that such Investor has had the opportunity to review this Agreement, and all exhibits attached hereto including specifically the form of the Note, and the transactions contemplated by
this Agreement and to consult with such Investor’s own legal counsel and advisors.  Each such Investor is relying solely on such Investor’s legal counsel, if consulted, and not on any statements or representations of the Company or any of the Company’s agents for legal advice with respect to this investment or the transactions contemplated by this Agreement.

 

4.      Conditions of Investors’ Obligations at the Closings.  The obligations of each Investor under Section 1.1 of this Agreement with respect to the initial Closing and Section 1.2 of this Agreement
with respect to each Interim Closing are subject to the fulfillment on or before the applicable Closing of each of the following conditions, the waiver of which shall not be effective against any Investor who does not consent in writing thereto:

 

4.1  Representations and Warranties.  The representations and warranties of the Company contained in Section 2 shall be true on and as of the applicable Closing with the same effect as though such representations and warranties
had been made on and as of the date of such Closing.

 

4.2  Performance.  The Company shall have performed and complied with all material agreements, obligations and conditions contained in this Agreement that are required to be performed or complied with by it on or before the applicable
Closing.

 

5.      Conditions of the Company’s Obligations at Closing.  The obligations of the Company to each Investor under this Agreement are subject to the fulfillment on or before the applicable Closing of each
of the following conditions by that Investor:

 

5.1  Representations and Warranties.  The representations and warranties of the Investor contained in Section 3 shall be true on and as of the applicable Closing with the same effect as though such representations and warranties
had been made on and as of such Closing.

 

5.2  Payment of Purchase Price.  The Investor shall have delivered the applicable Purchase Price.

 

 

 

4

 

 

6.      Miscellaneous.

 

6.1  Survival.  The warranties, representations and covenants of the Investors contained in or made pursuant to this Agreement shall survive the execution and delivery of this Agreement and each Closing.  The warranties,
representations and covenants of the Company shall survive execution and delivery of this Agreement and each Closing.

 

6.2  Successors and Assigns.  Except as otherwise provided herein, the terms and conditions of this Agreement shall inure to the benefit of and be binding upon the respective successors and assigns of the parties (including transferees
of any Notes).  Nothing in this Agreement, express or implied, is intended to confer upon any party, other than the parties hereto or their respective successors and assigns, any rights, remedies, obligations or liabilities under or by reason of this Agreement, except as expressly provided in this Agreement.

 

6.3  Choice of Law; Jurisdiction .  This Agreement shall be governed by and construed under the laws of the State of Delaware as applied to agreements among Delaware residents entered into and to be performed entirely within Delaware. Any
lawsuit or litigation arising under, out of, in connection with, or in relation to this Agreement, any amendment hereof, or the breach hereof, shall be brought in the courts of Omaha, Nebraska, which courts shall have exclusive jurisdiction over any such lawsuit or litigation.

 

6.4  Titles and Subtitles.  The titles and subtitles used in this Agreement are used for convenience only and are not to be considered in construing or interpreting this Agreement.

 

6.5  Notices.  All notices required or permitted hereunder shall be in writing and shall be deemed effectively given:  (i) upon personal delivery to the party to be notified, (ii) when sent by confirmed facsimile
if sent during normal business hours of the recipient, if not, then on the next business day; (iii) five (5) days after having been sent by registered or certified mail, return receipt requested, postage prepaid; or (iv) one (1) day after deposit with a nationally recognized overnight courier, specifying next day delivery, with written verification of receipt.  All communications shall be sent to the address as set forth on the signature page hereof or at such other address as such party may
designate by ten (10) days advance written notice to the other parties hereto.

 

6.6  Finder’s Fee.  Each Investor represents that it neither is nor will be obligated for any finders’ fee or commission in connection with this transaction.  Each Investor agrees to indemnify and to hold harmless
the Company from any liability for any commission or compensation in the nature of a finders’ fee (and the costs and expenses of defending against such liability or asserted liability) for which such Investor or any of its officers, partners, employees or representatives is responsible.

 

6.7  No Joint Venture.  Nothing in this Agreement shall create or be deemed to create a joint venture or partnership among the parties.  Each party agrees not to hold itself out as having any authority or as being in a relationship
contrary to this Section 7.7.

 

6.8  Expenses; Attorneys’ Fees.  Regardless of whether any of the Closings occur, each party shall pay all costs and expenses that it incurs with respect to the negotiation, execution, delivery and performance of this Agreement
and the Notes.   If any action at law or in equity is necessary to enforce or interpret the terms of this Agreement or the Notes, the prevailing party shall be entitled to reasonable attorneys’ fees, costs and necessary disbursements in addition to any other relief to which such party may be entitled.

 

 

 

5

 

 

6.9  Amendments and Waivers.  Except as otherwise provided in this Agreement, any term of this Agreement may be amended and the observance of any term of this Agreement may be waived (either generally or in a particular instance and
either retroactively or prospectively), only with the written consent of the Company and the Majority Noteholders.  Any amendment or waiver effected in accordance with this paragraph shall be binding upon each holder of any Note purchased under this Agreement at the time outstanding, and each future holder of all such Notes and the Company.

 

6.10  Effect of Amendment or Waiver.  Each Investor acknowledges that by the operation of Section 6.8 hereof the holders of a majority of the then outstanding principal amount of the Notes will have the power to diminish or eliminate
all rights of such Investor under this Agreement.

 

6.11  Severability.  If one or more provisions of this Agreement are held to be unenforceable under applicable law, such provision shall be excluded from this Agreement to the minimum extent necessary to comply with the laws of the relevant
jurisdiction and the balance of the Agreement shall be interpreted as if such provision were so excluded in such jurisdiction and shall be enforceable in accordance with its terms.

 

6.12  Entire Agreement.  This Agreement and the documents referred to herein constitute the entire agreement among the parties.

 

6.13  Counterparts.  This Agreement may be executed in two (2) or more original or facsimile counterparts all of which together shall constitute one and the same instrument.

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

 

 

6

 

 

IN WITNESS WHEREOF, the parties have executed this Promissory Note Purchase Agreement as of the date first above written.

 

	 	  	
COMPANY:
	  
	 	 	 	 
	 	  	
GABRIEL TECHNOLOGIES CORPORATION,
	  
	 	  	
a Delaware Corporation
	  
	 	  	  	 	 	  
	 	  	
By:
	 	 	  
	 	  	
Name:
	 	 	  
	 	  	
Title:
	 	 	  
	 	 	 	 
	 	
Address:
	
Gabriel Technologies Corporation
	  
	 	  	
Attention: President
	  
	 	  	  	 	 	  
	 	 	 	 	 	 
	 	  	  	 	 	  
	 	  	
INVESTORS:
	  
	 	  	  	 	 	  
	 	  	
By:
	 	 	  
	 	  	
Name:
	 	 	  
	 	  	
Title:
	 	 	  
	 	 	 	 	 	 
	 	
Address:
	  	 	 	  
	 	  	  	 	 	  
	 	  	  	 	 	  

 

 

7

 

 

SCHEDULE A

 

SCHEDULE OF INVESTORS

 

(AS OF INITIAL CLOSING)

 

	 	
 

Investor
	
Principal Amount of

Promissory Note
	
Date of

Investment

	 	
Bob Lamse
	
$100,000
	 	
8/21/2009

	 	
Gary Elliston
	
$50,000
	 	
8/21/2009

	 	
Stephen Moore
	
$50,000
	 	
8/21/2009

	 	
Ron Durden
	
$50,000
	 	
8/21/2009

	 	
Craig Bardsley
	
$25,000
	 	
8/21/2009

	 	
Chris Zerbe
	
$25,000
	 	
8/21/2009

	 	  	  	 	  
	 	  	TOTAL:   $300,000	 	  

 

 

 

 

8

 

 

EXHIBIT A

 

FORM OF PROMISSORY NOTE

 

 

 

 

9

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