Document:

Unassociated Document

    EXHIBIT
      10.19

     

    GABRIEL
      TECHNOLOGIES CORPORATION

     

    PROMISSORY
      NOTE

     

    
      	$65,000.00	
              May
                14, 2007

            

    

    

    FOR
      VALUE
      RECEIVED, the undersigned, Gabriel Technologies Corporation, a Delaware
      corporation ("Company"),
      promises
      to pay to the order of Steven D. Clarke & Freda L. Clarke ("Lender"), the
      principal sum of Sixty Five Thousand Dollars ($65,000) (the "Principal"),
      without
      interest. Further, Lender will receive a warrant to purchase Sixty Five Thousand
      (65,000) shares of the Company's common 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.

    

    1. Payments.
      One
      Hundred Thirty Thousand Dollars ($130,000) (which 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 represented by this Note. For purposes of this Note,
      an "IP Event"
      is
      defined as the receipt by the Company or any of its subsidiaries of a minimum
      of
      $6,000,000 in net proceeds (in cash or the fair market value of 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 One Hundred Thirty Thousand Dollars ($130,000) (which is
      the
      Principal of this Note plus an amount equal to 100% of such Principal), with
      such new promissory note (the "New
      Note")
      being
      due and payable on or before the one year anniversary of the Exchange Date
      (as
      defined below). Lender shall exercise its right to such surrender and exchange
      by (i) providing 10 days written 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 this 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 required 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 exercising any right hereunder shall operate as a waiver
      of such right or any 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 Omaha, Nebraska, which courts shall have exclusive
      jurisdiction over any such lawsuit or litigation.

    

      
        
           

        

        
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    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 has 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                                               

     

    
-2-Unassociated Document

    EXHIBIT
      10.20

     

     

    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 65,000 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:

            	
              Steven
                D. Clarke & Freda L. Clarke

            
	 	 
	
              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.

            

    

    

    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

     

    
      
        
          
          

        

        
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    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
      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

     

    
      
        
          
          

        

        
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    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.

    

    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

    

      
        
          
          

        

        
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    underwriting
      as agreed upon between the Company and the underwriters for the offering (which
      underwriters shall be selected by the Company).

    

    1.16Cashless
      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 54,166 shares of Common Stock
      on
      a cashless basis [((65,000 x $3.00) - (65,000 x
      $0.50)),
      divided by $3.00 = 54,166 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.

    

    1.18Amendments.
      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

    

      
        
          
          

        

        
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    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.

    

    Dated
      this 14th
      day
      of
      May, 2007.

    

    

    GABRIEL
      TECHNOLOGIES CORPORATION 

    

    

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

    Name: T.J.
      O’Brien                                                   

    Title: Acting
      COO                                                    

    
 

    -5-

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