Document:

Note and Warrant Purchase Agreement

      This NOTE AND WARRANT PURCHASE AGREEMENT, dated as of July 29, 2005 (this
"Agreement"), is by and among BioForce Nanosciences, Inc., a Delaware
corporation (the "Company"), as seller, and FCPR SGAM Biotechnology Fund (the
"Investor"), as purchaser. The Company and the Investor are referred to
collectively as the "Parties," and individually as a "Party."

                                    RECITALS

      WHEREAS, the Investor is an existing stockholder of the Company; and

      WHEREAS, the Company desires to borrow from the Investor and the Investor
desires to loan to the Company $1,000,000 in accordance with the terms and
conditions contained herein.

      NOW THEREFORE, upon the terms and subject to the conditions set forth in
this Agreement, the receipt and sufficiency of which are hereby acknowledged,
the Parties hereby agree as follows:

                                    ARTICLE I

                                  DEFINED TERMS

      Unless otherwise defined in the text of this Agreement, all capitalized
terms have the meanings attributed to them in Appendix A, which is incorporated
herein by reference.

                                    ARTICLE II

                         PURCHASE AND SALE OF THE NOTES

      Section 2.01 Loans.

            (a) The Investor agrees, subject to the terms and conditions set
forth herein, to make a loan to the Company on the First Closing Date, in the
aggregate amount of $500,000 (the "First Loan"). The obligations of the Company
to repay the First Loan shall be evidenced by the Company's convertible
unsecured promissory note in the form attached hereto as Exhibit A (the "First
Note").

            (b) Upon not less than ten (10) days' prior written notice to the
Investor by the Company's submission of a written request, the Investor agrees,
subject to the terms, conditions and requirements set forth herein, to make an
additional loan of $500,000 (the "Second Loan"; the Second Loan and the First
Loan are collectively referred to as the "Loans," and each as a "Loan"). The
obligations of the Company to repay the Second Loan shall be evidenced by the
Company's unsecured promissory note also in the form attached hereto as Exhibit
A (the

<PAGE>

"Second Note"; the Second Note and the First Note are collectively referred to
as the "Notes," and each as a "Note").

      Section 2.02 Warrants.

            (a) As an inducement for the Investor to convert the First Loan, but
subject to the provisions of Section 2.02(b), the Company shall issue and
deliver to the Investor upon the conversion of the First Note held by the
Investor, a warrant to purchase that number of Common Shares equal to five
percent (5%) of the Future Securities per month, for up to a maximum of four
months, for a maximum number of Common Shares equal to twenty percent (20%) of
the Future Securities. Such warrant (the "First Warrant") shall be substantially
in the form of Exhibit B. The exercise price for the First Warrant shall be
equal to $0.01 per share. The First Warrant shall expire on the fifth (5th)
anniversary of the issuance date of the First Warrant.

            (b) If the Second Closing Date occurs at any time prior to the
closing of the Company's sale or issuance of its Common Stock, Preferred Stock,
or other equity securities convertible into Common Stock for cash (excluding
securities issued pursuant to outstanding options or upon conversion of the
Notes) in one transaction or a series of transactions occurring after the date
hereof, which results in the receipt by the Company of at least $1,000,000 in
proceeds from any combination of (a) Wellmark Blue Cross and Blue Shield of
Iowa, (b) Iowa Farm Bureau, (c) The Principal Financial Group and/or (d) other
institutional investors who invest in the Second Notes (the "Tranche lB
Investors") (a "Tranche lB Financing"), then the Company shall issue and deliver
to the Investor, upon the conversion of the Second Note held by the Investor, a
warrant to purchase a number of Common Shares equal to five percent (5%) of the
Future Securities per month, for up to four months, for a total number of Common
Shares equal to twenty percent (20%) of the Future Securities. Such warrant (the
"Second Warrant") shall be substantially in the form of Exhibit B. The exercise
price for the Second Warrant shall be equal to $0.01 per share. The Second
Warrant shall expire on the fifth (5th) anniversary of the issuance date of the
First Warrant.

      Section 2.03 Closing Date. The closing for the purchase and sale of the
First Note shall take place at the latest at 10:00 A.M. (local time) on July 29,
2005 (the "First Closing Date"), and with respect to the purchase and sale of
the Second Note, on the date and at the time designated by the Company in its
written request (the "Second Closing Date"), or on such other dates at such
other times or place as the Parties may agree. The First Closing Date and the
Second Closing Date shall collectively be referred to herein as the "Closing
Dates" and sometime individually as a "Closing Date."

                                   ARTICLE III

                              CONDITIONS TO CLOSING

      Section 3.01 Investor's Conditions to Closing. The obligation of the
Investor to make any given Loan and perform its obligations contemplated hereby
at the Closing Date for such Loan is subject to the satisfaction of the
following conditions precedent, any of which may be waived by the Investor in
its sole discretion:

                                       2
<PAGE>

            (a) Accuracy of Representations and Warranties. Each representation
and warranty of the Company contained in this Agreement shall be true and
correct in all material respects when made and as of such Closing Date.

            (b) Performance. The Company shall have performed and complied with
in all material respects all covenants, agreements and conditions contained in
this Agreement required to be performed or complied with by the Company prior to
or at such Closing Date.

            (c) Certificates and Documents. The Company shall have delivered to
the Investor on or before such Closing Date, in a form reasonably acceptable to
the Investor, a certificate of the Secretary of the Company dated as of such
Closing Date, certifying as to a copy of the resolutions of the Board of
Directors of the Company authorizing and approving (A) the Company's execution,
delivery and performance of this Agreement and the Related Documents, all
matters in connection with this Agreement and the Related Documents and the
transactions contemplated hereby or thereby, and (B) the execution, issuance,
sale, delivery and performance of the Notes.

            (d) Compliance Certificate. The Company shall have delivered to the
Investor a certificate, executed by the President of the Company as of such
Closing Date, certifying that the conditions specified in Sections 3.01(a) and
(b) have been satisfied in all material respects.

            (e) Legal Investment. As of such Closing Date, the purchase of the
Note by the Investor shall be legally permitted by all laws and regulations to
which the Investor and the Company are subject.

            (f) No Proceedings. No suit, action, investigation, inquiry or other
legal or administrative proceeding by any governmental authority or other Person
shall have been instituted or threatened that seeks to enjoin, restrain or
prohibit, or that questions the validity or legality of, the transactions
contemplated by this Agreement or the Related Documents.

      Section 3.02 Company's Conditions to Closing. The obligation of the
Company to perform its obligations contemplated hereby at the Closing Date for a
Loan is subject to the satisfaction of the following conditions precedent, any
of which may be waived by the Company in its sole discretion:

            (a) Accuracy of Representations and Warranties. Each representation
and warranty of the Investor contained in this Agreement shall be true and
correct in all material respects when made and as of such Closing Date.

            (b) Performance. The Investor shall have performed and complied with
in all material respects all covenants, agreements and conditions contained in
this Agreement required to be performed or complied with by the Investor prior
to or at such Closing Date.

            (c) Compliance Certificate. The Investor shall have delivered to the
Company a certificate, executed by an officer of the Investor as of such Closing
Date, certifying

                                       3
<PAGE>

that the conditions specified in Sections 3.02(a) and (b) have been satisfied in
all material respects.

            (d) Legal Investment. As of such Closing Date, the purchase of the
Note by the Investor shall be legally permitted by all laws and regulations to
which the Investor and the Company are subject.

                                   ARTICLE IV

                 REPRESENTATIONS AND WARRANTIES OF THE COMPANY

      The Company represents and warrants to the Investor as follows:

      Section 4.01 Organization and Good Standing. The Company is a corporation
duly organized, validly existing and in good standing under the laws of the
State of Delaware. The Company has previously furnished to the Investor true and
complete copies of its Charter Documents and any other agreements affecting its
governance.

      Section 4.02 Corporate Power. The Company has full corporate and other
power and authority (i) to own, lease and operate its properties and assets,
(ii) to carry on its business as presently conducted, (iii) to execute and
deliver this Agreement, the Related Documents and any other instruments or
documents provided for herein or therein, (iv) to issue and sell the Notes and
the Warrant, and (v) to carry out and perform its obligations under the terms of
this Agreement and the Related Documents.

      Section 4.03 Authorization; Enforceability. The execution and delivery of
this Agreement and the Related Documents by the Company, and, except for the
authorization and issuance of the Future Securities, the performance of its
obligations hereunder and thereunder, have been duly authorized by all requisite
corporate action. This Agreement and each Related Document, when executed and
delivered by the Company, will constitute valid and legally binding obligations
of the Company, enforceable against the Company in accordance with their
respective terms, subject to applicable bankruptcy, reorganization, insolvency,
moratorium or similar laws affecting creditors' rights generally, and to general
principles of equity.

      Section 4.04 Validity of Shares. The Warrant Shares and the Future
Securities will be duly and validly reserved by the Company and, upon issuance
in accordance with the exercise procedures in the Notes, the Warrant and the
Company's then current Amended and Restated Certificate of Incorporation, as the
case may be, will be duly and validly issued, fully paid, non-assessable and
free and clear of all Liens.

      Section 4.05 No Conflicts. The execution, delivery and performance of this
Agreement and the Related Documents by the Company do not and will not (i)
conflict with or violate any Applicable Law or any judgment, order, decree,
stipulation or injunction to which the Company is subject on the Closing Dates,
(ii) violate or conflict with the provisions of its Charter Documents, or (iii)
result in the breach of, or constitute a default under, or give to others any
rights of termination, amendment, acceleration or cancellation of, or result in
the creation of any Lien on any of its assets or properties pursuant to, any
note, bond, contract, lease, license, permit,

                                       4
<PAGE>

indenture, mortgage or any other instrument or agreement to which the Company is
a party or by which any of its property is bound on the Closing Dates.

      Section 4.06 Consents. No consent, approval, authorization, license, order
or permit of, or declaration, registration or filing with, or notification to,
any governmental authority or any other Person is required in connection with
the execution, delivery and performance of this Agreement and the Related
Documents, or the consummation of any transaction contemplated hereby or
thereby, except those filings related to applicable securities laws, if any.

      Section 4.07 Legal Proceedings. There is no pending or threatened
litigation, arbitration, civil, administrative or criminal proceedings,
including bankruptcy proceedings, or any other legal proceedings against the
Company which could have a Material Adverse Effect.

      Section 4.08 Disclosure. To the knowledge of the Sellers, there are no
other facts or circumstances known to the Sellers which may have a Material
Adverse Effect and which have not been or will not be fully and fairly disclosed
to the Buyer.

                                    ARTICLE V

                REPRESENTATIONS AND WARRANTIES OF THE PURCHASER

      The Investor represents and warrants to the Company as follows:

      Section 5.01 Organization. The Investor is duly organized and validly
existing and is in active status under the laws of France.

      Section 5.02 Authorization; Enforceability. The execution and delivery of
this Agreement and the Related Documents by the Investor, and the performance of
its obligations hereunder and thereunder, are within its powers and have been
duly authorized by all necessary action. This Agreement and each Related
Document, when executed and delivered by the Investor, will constitute valid and
legally binding obligations of the Investor, enforceable against the Investor in
accordance with their respective terms, subject to applicable bankruptcy,
reorganization, insolvency, moratorium or similar laws affecting creditors'
rights generally, and to general principles of equity.

      Section 5.03 No Conflicts. The execution, delivery and performance of this
Agreement and the Related Documents by the Investor do not and will not (i)
conflict with or violate any Applicable Law or any judgment, order, decree,
stipulation or injunction to which the Investor is subject on the Closing Dates,
(ii) violate or conflict with the provisions of its Charter Documents, or (iii)
result in the breach of, or constitute a default under, or give to others any
rights of termination, amendment, acceleration or cancellation of, or result in
the creation of any Lien on any of its assets or properties pursuant to any
note, bond, contract, lease, license, permit, indenture, mortgage, or any other
instrument or agreement to which it is a party or by which any of its property
is bound on the Closing Dates.

      Section 5.04 Consents. No consent, approval, authorization, license, order
or permit of, or declaration, registration or filing with, or notification to,
any governmental authority or any

                                       5
<PAGE>

third party is required in connection with the execution, delivery and
performance of this Agreement and the Related Documents by the Investor, or the
consummation of any transaction contemplated hereby or thereby by the Investor.

      Section 5.05 Experience. The Investor is a professional investment fund
and has such knowledge and experience in financial business matters that it is
capable of evaluating the risks and merits of an investment in the Notes and the
Warrant (and potentially the Future Securities).

      Section 5.06 Investment Intent. The Investor is acquiring the Notes (and
potentially the Future Securities) for investment for its own account and not
with a view to, or for resale in connection with, any distribution thereof
within the next year. The Investor understands that the issuance and sale of the
Notes have not been, and will not be (and the Future Securities will not be),
subject to a registration statement filed under the Securities Act or any
applicable state securities laws by reason of an exemption from such
registration, which exemption depends upon, among other things, the accuracy of
the representations expressed herein.

      Section 5.07 Rule 144; Legend. The Investor acknowledges that the Notes,
the Warrant, and the Future Securities are or will be, as the case may be,
restricted securities within the meaning of Rule 144 promulgated under the
Securities Act and must be held indefinitely unless subsequently registered
under the Securities Act and applicable state securities laws or unless an
exemption from such registration is available. In addition to any other
applicable legend, the Notes, the Warrant, and the Future Securities shall
contain or otherwise be imprinted with a legend substantially in the following
form:

      "NEITHER THIS SECURITY NOR ANY SECURITIES THAT MAY BE ISSUED UPON
      CONVERSION HEREOF HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF
      1933, AS AMENDED (THE "SECURITIES ACT"), APPLICABLE STATE SECURITIES LAWS,
      OR APPLICABLE LAWS OF ANY FOREIGN JURISDICTION. SUCH SECURITIES HAVE BEEN
      ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO DISTRIBUTION OR RESALE
      WITHIN THE NEXT YEAR. SUCH SECURITIES MAY NOT BE SOLD, OFFERED, PLEDGED,
      HYPOTHECATED, RENOUNCED OR OTHERWISE TRANSFERRED IN THE ABSENCE OF THE
      CONSENT OF THE COMPANY UNLESS THERE IS (A) AN EFFECTIVE REGISTRATION
      STATEMENT UNDER THE SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES
      LAWS AND COMPLIANCE WITH APPLICABLE LAWS OF ANY FOREIGN JURISDICTION, OR
      (B) AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT (I) SUCH
      REGISTRATION IS NOT REQUIRED, AND (II) SUCH FOREIGN JURISDICTION LAWS HAVE
      BEEN SATISFIED AND OTHERWISE COMPLIED WITH."

                                       6
<PAGE>

                                   ARTICLE VI

                             AFFIRMATIVE COVENANTS

      Unless the investor waives compliance therewith, the Company shall comply
with the following:

      Section 6.01 Use of Proceeds. Unless otherwise approved by the Company's
board of directors, the Company agrees to use the proceeds from the sale of the
Notes and the Warrant to End the Company's operating capital needs according to
the Business Plan and Projections attached hereto as Appendix B.

                                   ARTICLE VII

                                  MISCELLANEOUS

      Section 7.01 Survival. The representations and warranties made herein
shall survive any closing contemplated hereby for a period ending at the earlier
of (i) five (5) years after such closing or (ii) the payment or conversion in
full of the Note issued at such closing.

      Section 7.02 Entire Agreement. This Agreement and the Related Documents
constitute the entire agreement relating to the subject matter hereof among the
Parties and supersede all prior or contemporaneous agreements between the
Parties. The Parties have not relied upon any representations, inducements,
promises, undertakings or agreements other than those expressly set forth in
this Agreement or the Related Documents.

      Section 7.03 Severability; Assignment. If any provision of this Agreement
or any Related Document is held to be invalid, void or unenforceable for any
reason, the remaining provisions shall nevertheless continue in full force and
effect; provided, that nothing in this Section 7.03 shall be construed to limit
or waive the breach of any representation with respect to enforceability of this
Agreement. This Agreement and the Related Documents may not be assigned by
either Party without the express prior written consent of the other Party
hereto.

      Section 7.04 Legal Representation. Intentionally Deleted.

      Section 7.05 Notice.

            (a) Any notice or other communication required or permitted to be
given or made under this Agreement or any Related Document (i) shall be in
writing, (ii) may be delivered by hand delivery, First Class U.S. Mail
(certified mail, return receipt requested), FedEx, UPS Overnight, Airborne or
other internationally recognized delivery service, fax, or electronic
transmission, and (iii) shall be delivered or transmitted to the appropriate
address as set forth below.

            (b) Each notice or other communication shall be delivered or
addressed to a Party at its address set forth below. A Party's address for
notice may be changed from time to time by notice given to the other Party.

                                       7
<PAGE>

            Company:

                  BioForce Nanosciences, Inc.
                  2901 S. Loop Drive, Suite 3400
                  Ames, Iowa 50010-8634 USA
                  Facsimile: (515) 296-6570
                  Attn: Chief Executive Officer

                  With a copy to:

                        Michael Best & Friedrich LLP
                        One South Pinckney Street, #700
                        Madison, WI 53703
                        Attention: Gregory J. Lynch, Esq.
                                   Chad G. Bartell, Esq.
                        Fax No. (608) 283-2275

            Investor:

                  FCPR SGAM Biotechnology Fund
                  Societe Generale Asset Management
                  2 place de la Coupole
                  92400 Courbevoie
                  Attention: Jean-Yves Nothias
                  Facsimile: 33 1 5637 8647

            (c) Absent fraud, a receipt signed by the addressee or its
authorized representative, a certified or registered mail receipt, a signed
delivery service confirmation or a fax or e-mail confirmation of transmission
shall constitute proof of delivery. Any notice actually received by the
addressee shall constitute delivery notwithstanding the failure to comply with
any provisions of this Section 7.05.

      Section 7.06 Further Assurances. Each Party agrees to execute and deliver
such further documents and instruments and to do such further acts and things
as may be necessary or desirable to carry out the intent and purposes of this
Agreement and the Related Documents.

      Section 7.07 Execution and Closing of the Transaction. It is anticipated
that this Agreement and the Related Documents may be executed, and the
transactions contemplated by this Agreement may be closed and consummated, by
the transmission of documents, signature pages of documents and funds by mail,
delivery service, fax or other electronic transmission. Each Party agrees that
the faxed delivery of a counterpart signature page to the other Party or its
representatives shall constitute such Party's execution and delivery thereof and
that this Agreement may be executed and delivered in counterparts, each of which
shall be deemed an original and all of which shall constitute one instrument.
The Parties agree that the attachment of original or faxed signature pages of
any document by legal counsel acting in such capacity and in accordance with
instructions, shall constitute the execution and delivery of such documents.

                                       8
<PAGE>

      Section 7.08 Governing Law. ALL MATTERS RELATING TO THE INTERPRETATION,
CONSTRUCTION, VALIDITY AND ENFORCEMENT OF THIS AGREEMENT AND THE RELATED
DOCUMENTS SHALL BE GOVERNED BY THE INTERNAL LAWS OF THE STATE OF DELAWARE,
WITHOUT GIVING EFFECT TO ANY CHOICE OF LAW OR CONFLICTS OF LAW PROVISIONS
THEREOF OR RULES OF CONSTRUCTION CONCERNING THE DRAFTSMAN HEREOF.

                                       9
<PAGE>

      The Parties have caused this Agreement to be executed and delivered
effective as of the date first above written.

Company:

BIOFORCE NANOSCIENCES, INC.

By:______________________________
Name:____________________________
Title:___________________________

Investor:

FCPR SGAM BIOTECHNOLOGY FUND

By:   Societe Generale Asset Management Alternative Investments, its management
      company

By: /s/ Midori Yokoyama
    -----------------------------
Name: Midori Yokoyama
      ---------------------------
Title: Partner
       --------------------------

                                       10
<PAGE>

      The Parties have caused this Agreement to be executed and delivered
effective as of the date first above written.

Company:

BIOFORCE NANOSCIENCES, INC.

By: /s/ Laurence S. Russ
    -----------------------------
Name: Laurence S. Russ
      ---------------------------
Title: PRESIDENT & CEO
       --------------------------

Investor:

FCPR SGAM BIOTECHNOLOGY FUND

By:   Societe Generale Asset Management Alternative Investments, its management
      company

By:______________________________
Name:____________________________
Title:___________________________

                                       11
<PAGE>

                                   Appendix A

                                 Defined Terms

"Act" has the meaning set forth in Section 5.7 of this Agreement.

"Accredited Investor" means an "accredited investor," as that term is defined
under Rule 501(a) of Regulation D of the Securities Act.

"Agreement" has the meaning set forth in the caption to this Agreement.

"Applicable Law" means, with respect to any Person, any and all federal,
national, state, regional, local, municipal or foreign laws, statutes, rules,
regulations, guidelines, ordinances, licenses, permits, judicial or
administrative decisions of any country, or any political subdivision, agency,
commission, official or court thereof having jurisdiction over such Person or
its business.

"Capital Stock" of any Person means any and all shares, equity interests,
participations, profit sharing interests or other equivalents (however
designated) of corporate stock (including each class of common stock and
preferred stock) or partnership, limited liability company or membership
interests of such Person.

"Charter Documents" mean a Person's formation or other governing documents,
including but not limited to, as applicable, its certificate or articles of
incorporation, bylaws, code of regulations, articles of organization, operating
agreement, certificate of limited partnership and partnership agreement.

"Closing Dates" or "Closing Date" have the meaning set forth in Section 2.03 of
this Agreement.

"Common Shares" means shares of the Company's Common Stock that may be
authorized and issued from time to time.

"Company" has the meaning set forth in the caption to this Agreement.

"First Closing Date" has the meaning set forth in Section 2.03 of this
Agreement.

"First Loan" has the meaning set forth in Section 2.01(a) of this Agreement.

"First Note" has the meaning set forth in Section 2.01(a) of this Agreement.

"Future Securities" means the Common Shares, Series A Shares or other Capital
Stock of the Company issuable upon conversion of the Notes and the Common Shares
issuable upon conversion of such Series A Shares or other Capital Stock, if
applicable.

"Investor" has the meaning set forth in the caption to this Agreement.

<PAGE>

"Lien" means any mortgage, assessment, security interest, easement, claim,
trust, charge, pledge, hypothecation, assignment, deposit arrangement,
encumbrance, lien (statutory or otherwise, including judgment and mechanics'
liens), or preference, priority or other security agreement or similar
preferential arrangement of any kind or nature whatsoever (including any
conditional sale or other title retention agreement, any financing lease having
substantially the same economic effect as any of the foregoing, and the filing
of any financing statement under the UCC or comparable law of any jurisdiction
in respect of any of the foregoing).

"Loans" has the meaning set forth in Section 2.01(b) of this Agreement.

"Material Adverse Effect" means any effect on, or change in, the business or
assets of the Company that is materially adverse to the financial condition of
the Company and amounts to US $100,000 (one hundred thousand) or more.

"Notes" or "Note" have the meaning set forth in Section 2.01(b) of this
Agreement.

"Parties" and "Party" have the meanings set forth in the caption to this
Agreement.

"Related Documents" means the Warrant, the Notes, and all other agreements and
certificates contemplated hereby to be delivered at or in connection with a
Closing Date.

"Second Closing Date" has the meaning set forth in Section 2.03 of this
Agreement.

"Second Loan" has the meaning set forth in Section 2.0 1(b) of this Agreement.

"Second Note" has the meaning set forth in Section 2.0 1(b) of this Agreement.

"Securities Act" means the Securities Act of 1933, as amended, or any similar
federal statute, and the rules and regulations of the Commission thereunder, all
as of the same shall be in effect at the time. References to a particular
section of the Securities Act of 1933, as amended, shall include a reference to
the comparable section, if any, of any such similar successor federal statute.

"Series A Shares" means shares of the Company's Series A Preferred Stock that
may be authorized and issued from time to time.

"Warrant" has the meaning set forth in Section 2.02 of this Agreement.

"Warrant Shares" means the Common Shares, Series A Shares or shares or
securities of Capital Stock for which the Investor is entitled to purchase under
the terms and conditions of the Warrant.

                                       iiExhibit 10.11

                                    AGREEMENT

      THIS AGREEMENT ("Agreement") is entered into and is effective as of March
30, 2007, by and between GALES INDUSTRIES INCORPORATED ("Company"), a Delaware
corporation, and JAMES A. BROWN, an individual resident in the State of Florida
("Mr. Brown").

                                    PREAMBLE

      WHEREAS, Mr. Brown has been elected to serve as Chairman of the Board
("Chairman") by the Board of Directors of the Company (the "Board") and the
other Board wish to encourage his efforts on behalf of the Company by providing
the compensation set forth herein; and

      WHEREAS, Mr. Brown is willing to serve in the capacity of Chairman,
subject to the following terms and conditions.

                                  THE AGREEMENT

      NOW, THEREFORE, in consideration of the mutual promises and agreements
hereby exchanged, the Company and Mr. Brown (collectively the "Parties"), hereby
agree as follows:

1. Term; Obligations to the Company.

      a. Mr. Brown commenced serving as Chairman on March 16, 2007 (the
"Effective Date"), and will serve as Chairman until the earlier of the date (i)
that Mr. Brown ceases to be a director of the Company, (ii) that his successor
as Chairman is elected by the Board and accepts the responsibility to serve as
Chairman as provided in the Company's bylaws in effect as of such date, (iii) of
his resignation as Chairman, (iv) of his removal as provided in this Agreement,
or (v) of his death or Disability (defined below) (the "Term"). Mr. Brown's
resignation of or removal from the office of Chairman as provided in this
section shall not, of itself, alter or affect his status as a member of the
Board. Further, the term of this Agreement need not necessarily correspond with
the term of Mr. Brown's service as Chairman.

      b. Mr. Brown shall have such authority, responsibilities, and duties as
are normally associated with the chairman of a company similar to the Company,
together with such other duties which are, in good faith, delegated by the
bylaws of the Company or are assigned to him by majority vote of the members of
the Board. Mr. Brown agrees to use his reasonable business judgment to loyally
and conscientiously perform all of the duties and obligations required of and
from him pursuant to the express and implicit terms of this Agreement. Mr. Brown
shall report to the Board and to such Committee as may be designated from time
to time for such purpose by the Board. Nothing in this Agreement will prevent
Mr. Brown (1) from serving as an employee, officer or director of any other
company, provided that such performance is consistent with Mr. Brown's duty of
loyalty to the Company, (2) from serving on voluntary, community service
committees and boards, and (3) from owning shares valued at less than $250,000
representing less than 5% of the outstanding equity securities of a competitive
company whose stock is listed on a national stock exchange or the NASDAQ
National Market. Mr. Brown will comply with and be bound by the Company's
operating policies, procedures and practices from time to time in effect during
the Term.

                                       1
<PAGE>

      c. Conflicts. Mr. Brown represents that his performance of all the terms
of this Agreement will not conflict with or breach any other agreement to which
he is a party or may be bound. Mr. Brown has not, and will not during the term
of this Agreement, enter into any oral or written agreement in conflict with any
of the provisions of this Agreement. Mr. Brown represents and warrants that he
is not bound by any agreements which prohibit or restrict him from: (a)
competing with, or in any way participating in a business that competes with,
any former employer or business of any former employer to the extent that Mr.
Brown's performance of his duties under this Agreement would be deemed to
constitute such competition; (b) soliciting personnel of a former employer or
business to leave such former employer's employment or to leave such business;
or (c) soliciting customers, suppliers, financing sources or other entities
having a substantial relationship with a former employer or business.

2. Fees. For the duties and services to be performed by him under this
Agreement, the Company shall pay to Mr. Brown, and Mr. Brown agrees to accept,
the compensation described below in this Section 2.

      a. Fees. Commencing as of the Effective Date, Mr. Brown will be paid a
director's fee at the rate of $175,000.00 per year (the "Fee"). The Fee shall be
payable no less frequently than monthly. The Fee shall be reviewed by the Board
or an appropriate committee thereof no less often than annually. The review
shall take into account the projected and historical scope of Mr. Brown's
responsibility as Chairman, the time devoted to his responsibilities as
Chairman, and such other matters as the Board may consider relevant. If the Fee
is adjusted, such adjusted amount shall thereafter become the "Fee" for the
purposes of this Agreement.

      b. Bonus. In addition to the Fee, promptly after the date hereof Mr. Brown
will be paid $15,000. In addition, Mr. Brown may receive an annual bonus in cash
or stock at the sole discretion of the Board of Directors or an appropriate
committee thereof.

      c. Limitation on Other Fees. During such period that Mr. Brown is
receiving the Fee, he shall continue to receive the "per meeting" fees paid to
other Board members, but shall not receive such annual retainer, committee fees
and chairmanship fees as may be paid to other Board members.

      d. Equity Component. In addition to the Fee, Mr. Brown shall receive Two
Hundred Thousand (200,000) shares of the Company's common stock pursuant to the
form of restricted stock agreement attached to this Agreement as Exhibit A.

                                       2
<PAGE>

3. Expenses. Mr. Brown shall be reimbursed by the Company for reasonable
expenses incurred by him in furtherance of his performance of duties hereunder,
provided that such expenses are substantiated in accordance with Company
policies.

4. Office. In connection with the performance of his responsibilities and
duties, the Company will supply Mr. Brown with services, staff and facilities
reasonably appropriate to carry out such responsibilities and duties as his
position from time to time requires, including, but not limited to, adequate
computing and mobile communication devices and support. The Company, will, on an
annual basis during the Term, provide one new laptop computer system of Mr.
Brown's choosing for his use.

5. Fringe and Medical Benefits. Mr. Brown will be eligible to participate in any
of the Company's medical, dental and other benefit programs as are available to
independent members of the Board.

6. Term.

      a. Term. The term of this Agreement shall commence as of the date hereof
and shall terminate on December 31, 2007, provided if Mr. Brown's tenure as
Chairman shall end earlier, this Agreement shall terminate on the date he ceases
to serve as Chairman.

      b. Termination by Reason of Death or Disability.

            1. In the event that Mr. Brown's tenure as Chairman with the Company
      terminates as a result of his death or Disability (as defined below), he
      or his estate or representative will receive all fees accrued as of the
      date of Mr. Brown's death or Disability and any other benefits payable
      under the Company's then existing benefit plans and policies in accordance
      with such plans and policies in effect on the date of death or Disability
      and in accordance with applicable law.

            2. Definition of Disability. For purposes of this Agreement,
      "Disability" shall mean that Mr. Brown, in the reasonable determination of
      the Board, has been unable to perform his duties hereunder as the result
      of his incapacity due to physical or mental illness, incapacity or
      disability and such inability continues for at least 90 consecutive
      calendar days or 120 calendar days during any consecutive twelve-month
      period; provided, that any days of disability separated by ten (10) or
      fewer days shall be considered continuous. During any period when Mr.
      Brown implicitly or explicitly purports to be unable to perform his duties
      hereunder by reason of physical or mental illness, incapacity or
      disability, Mr. Brown, at the request of the Company, shall submit to one
      or more examinations by a physician of the Company's choice acceptable to
      Mr. Brown (with such agreement on acceptability not to be unreasonably
      withheld).

                                       3
<PAGE>

      c. Termination in General. Upon the termination of Mr. Brown's status as
Chairman, the Company shall pay to Mr. Brown all of his Fees accrued as of the
date of termination and such expense reimbursements as are due as of such date.

      d. Continuation of Health Benefits. To the extent that health insurance
benefits are provided under Section 5, if Mr. Brown's tenure as Chairman shall
terminate for reasons other than voluntary resignation by him not requested by
the Board, such benefits shall continue with the same coverage provided to Mr.
Brown prior to the termination (e.g. medical, dental, optical, mental health)
and in all other respects significantly comparable to those in place immediately
prior to the termination at the Company's cost during the six-month period
following the date of termination.

7. Governing Law; Mediation & Arbitration. This Agreement shall be governed by,
and construed in accordance with the laws of the State of New York, without
regard to choice-of-law principles, as if made and to be performed solely in New
York.

8. Notices. All notices or other communications which are required or permitted
hereunder shall be in writing and sufficient if delivered personally or sent by
air courier or first class certified or registered mail, return receipt
requested and postage prepaid, addressed as follows:

           If to Mr. Brown, to:      6162 Via Venetia North
                                     Delray Beach, FL 33484-6438

                with a copy to:      Greenberg Traurig, P.A.
                                     777 S. Flagler Drive, Suite 300-East Tower
                                     West Palm Beach, Florida 33401
                                     Attn: Morris C. Brown, Esq.

         If to the Company, to:      Gales Industries Incorporated
                                     1479 Clinton Avenue
                                     Bay Shore, New York 11706
                                     Attn: President

                with a copy to:      Eaton & Van Winkle
                                     3 Park Avenue
                                     New York, New York 10016
                                     Attn: Vincent J. McGill, Esq.

or to such other address as the party to whom notice is to be given may have
furnished to the other party in writing in accordance herewith. All notices and
other communications given to any party hereto in accordance with the provisions
of this Agreement shall be deemed to have been given on the date of delivery if
personally delivered; on the business day after the date when sent if sent by
air courier; and on the third business day after the date when sent if sent by
mail, in each case addressed to such party as provided in this Section or in
accordance with the latest written direction from such party.

                                       4
<PAGE>

9. Indemnification. The Company shall indemnify Mr. Brown, as a director of the
Company, to the maximum extent permitted under applicable law against all
liabilities and expenses, including amounts paid in satisfaction of judgments,
in compromise, or as fines and penalties, and counsel fees, reasonably incurred
by Mr. Brown in connection with the defense or disposition of any civil,
criminal, administrative or investigative action, suit or other proceeding,
whether civil or criminal, in which he may be involved or with which he may be
threatened, while an officer or director of the Company. Expenses (including
attorney's fees) incurred by Mr. Brown in defending any such action, suit or
other proceeding shall be paid by the Company in advance of the final
disposition of such action, suit or proceeding upon receipt of an undertaking by
or on behalf of him to repay such amount if it shall be ultimately determined
that he is not entitled to be indemnified by the Company. The right of
indemnification provided herein shall not be exclusive of or affect any other
rights to which Mr. Brown may be entitled. The provisions hereof shall survive
expiration or termination of this Agreement for any reason whatsoever. In the
event of any conflict between the provisions hereof and the indemnification
provisions contained in the Company's articles of incorporation or bylaws, or in
any agreement between the Company and Mr. Brown, the terms of such articles,
bylaws or agreement shall govern.

10. Entire Agreement. This Agreement constitutes the sole agreement of the
parties and supersedes all oral negotiations and prior writings, including any
and all prior employment agreements between Mr. Brown and the Company, with
respect to the subject matter hereof.

11. Advice of Counsel. EACH PARTY TO THIS AGREEMENT ACKNOWLEDGES THAT, IN
EXECUTING THIS AGREEMENT, SUCH PARTY HAS HAD THE OPPORTUNITY TO SEEK THE ADVICE
OF INDEPENDENT LEGAL COUNSEL, AND HAS READ AND UNDERSTOOD ALL OF THE TERMS AND
PROVISIONS OF THIS AGREEMENT. THIS AGREEMENT SHALL NOT BE CONSTRUED AGAINST ANY
PARTY BY REASON OF THE DRAFTING OR PREPARATION HEREOF.

12. Counterparts. This Agreement may be executed in one or more counterparts,
each of which shall be deemed an original, but all of which shall constitute one
and the same instrument.

13. Amendments. No modification, waiver, amendment, discharge or change of this
Agreement shall be valid unless the same is in writing and signed by the Party
against which the enforcement of said modification, waiver, amendment, discharge
or change is sought.

14. Severability. If any portion of any provision of this Agreement, or the
application of such provision or any portion thereof to any person or
circumstance shall be held invalid or unenforceable, the remaining portions of
such provision or portion of such provisions of this Agreement or the
application of such provision or portion of such provision as is held invalid or
unenforceable to persons or circumstances other than those to which it is held
invalid or unenforceable, shall not be effected thereby.

                                       5
<PAGE>

      The Parties, by signing below, agree to the terms and conditions set forth
in this Agreement.

                                              GALES INDUSTRIES INCORPORATED

                                              By: /s/ Peter D. Rettaliata
                                                  ------------------------------
                                                  President

                                              Date: 3/30/2007
                                                    ----------------------------

                                              JAMES. BROWN

                                              /s/ James A. Brown
                                              ----------------------------------
                                              James A. Brown

                                              Date: 3/30/2007
                                                    ----------------------------

                                       6

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