Document:

gabriel_8k-ex1003.htm

    EXHIBIT 10.3

     

    OBLIGATION EXCHANGE
AGREEMENT AND RELEASE

     

    THIS
OBLIGATION EXCHANGE AGREEMENT AND RELEASE (this “Agreement”)
is made and entered into effective as of the 5th day of May, 2008, by and
between Gabriel Technologies Corporation, a Delaware corporation (the “Company”),
and TLR Consulting, LLC, a South Carolina limited liability company (“TLR
Consulting”).  The Company and TLR Consulting are sometimes
hereinafter referred to individually as a “Party” and
collectively as the “Parties”.

     

    WHEREAS,
the Company has an outstanding Promissory Note dated January 23, 2007 in the
original principal amount of $175,000, payable to the order of TLR Consulting
(the “Note”);

     

    WHEREAS,
as of the date hereof, the Parties agree that the total outstanding obligations
(including principal and interest) of the Company under the Note are $191,000;
and

     

    WHEREAS,
TLR Consulting desires to exchange the Note for stock equivalent units of the
Company (“Units”), a
warrant to purchase Units (the “Warrant”),
and certain other consideration provided for herein, and the Company is willing
to do so provided that such exchange settles and releases all outstanding
obligations, debts, and liabilities with respect to the Note pursuant to the
terms of this Agreement.

     

    NOW,
THEREFORE, for good and valuable consideration, the receipt and adequacy of
which are hereby acknowledged and confessed, the Parties agree as
follows:

     

    1.    CONSIDERATION.

     

    (a)           Upon
the execution and delivery of this Agreement by TLR Consulting to the Company
and the cancellation and delivery of the Note pursuant to Section 2 below, the
Company shall issue:

     

    (i)           477,500
Units to TLR Consulting and, concurrent therewith, the Parties shall enter into
a Stock Equivalent Unit Participation Agreement in the form of Exhibit A attached
hereto (the “Participation
Agreement”).  The Units shall not be certificated, will be
governed by this Agreement and the Participation Agreement, and will be
represented solely by an account to be maintained by the Company as set forth in
the Participation Agreement; and

     

    (ii)           a
Warrant to purchase up to 477,500 Units to TLR Consulting at an exercise price
of $0.40 per Unit (the “Warrant
Consideration”). The Warrant Consideration shall be evidenced by a
Warrant Certificate in the form of Exhibit B attached
hereto (the “Warrant
Certificate”).

     

    (b)           In
addition to the Units and Warrant Consideration described above, TLR Consulting
shall receive one payment equal to 0.5% of an IP Event (as defined below),
within 10 business days after the IP Event. For purposes of this Agreement, an
“IP
Event” is defined as the receipt by the Company or any of its
subsidiaries of net proceeds of at least $10 Million (in cash or the fair market
value of non-cash consideration) from licensing, sale, transfer, settlement or
other transaction with one of more third parties relating to intellectual
property of the Company or its subsidiaries, or a merger, consolidation, share
exchange or sale of all or substantially all of the stock or assets of the
Company or its Subsidiaries.

     

    2.    DELIVERY AND CANCELLATION OF
NOTE.  Concurrent with the execution of the Agreement, TLR
Consulting shall deliver to the Company the Note which shall be marked
“cancelled” by the Company.  With such delivery and cancellation, TLR
Consulting agrees that all obligations of the Company in respect to the Note
(including without limitation obligations triggered by an “IP Event” as
described in Section 2 of the Note which are replaced and superseded by the
consideration provided for in Section 1(b) of this Agreement) are satisfied or
waived and released as herein provided. Notwithstanding the foregoing, the
warrants issued to TLR Consulting as provided for in the Note shall remain in
effect in accordance with the warrant certificate delivered by the Company to
TLR Consulting as specified in the Note.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    3.    TLR CONSULTING
REPRESENTATIONS AND WARRANTIES.  As of the date hereof, TLR
Consulting represents and warrants the following:

     

    (a)           It
has not assigned, pledged, or transferred in any manner to any person or entity
any right, title, or interest to the Note or any of the TLR Consulting Claims
(defined in Section 5 below);

    

    (b)           It
is free to enter into this Agreement and to perform each of its terms and
covenants;

    

    (c)           It
is not restricted or prohibited, contractually or otherwise, from entering into
and performing this Agreement;

    

    (d)           Its
execution and performance of this Agreement is not a violation or breach of any
other agreement between TLR Consulting and any other person or
entity;

    

    (e)           This
Agreement is a legal, valid and binding agreement of TLR Consulting, enforceable
in accordance with its terms;

    

    (f)           It
recognizes that acquiring the Units and Warrant Consideration involve a high
degree of risk and is suitable only for persons of adequate financial means who
have no need for liquidity of the Units and Warrant Consideration;

    

    (g)           It
(i) is competent to understand and does understand the nature of the Units and
Warrant Consideration, and (ii) is able to bear the economic risk of the Units
and Warrant Consideration;

    

    (h)           It
is an accredited investor as defined in Rule 501 of Regulation D promulgated by
the Securities and Exchange Commission under the Securities Act of 1933, as
amended (the “Act”);

    

    (i)           It
has significant prior investment experience, including investment in nonlisted
and nonregistered securities, and recognizes the highly speculative nature of
the Units and Warrant Consideration, and is able to bear the economic risk
hereby assumed;

    

    (j)           All
information regarding the Company which was requested or desired by it has been
furnished, all other documents which could be reasonably provided have been made
available for inspection and review, and it believes that such information is
sufficient to make an informed decision with respect to its acquiring the Units
and Warrant Consideration;

    

    (k)           It
is acquiring the Units and Warrant Consideration for its own account, for
investment, and not for distribution or resale to others; and

    

    (l)           It
may not assign or transfer the Units and/or Warrant Consideration except by
will, by the laws of descent and distribution, or pursuant to a qualified
domestic relations order as defined in the Internal Revenue Code of 1986, as
amended.

    

    4.    COMPANY REPRESENTATIONS AND
WARRANTIES.  As of the date hereof, the Company represents and
warrants the following:

     

    
      
        
        

      

      
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    (a)           It
is free to enter into this Agreement and to perform each of its terms and
covenants;

    

    (b)           It
is not restricted or prohibited, contractually or otherwise, from entering into
and performing this Agreement;

    

    (c)           Its
execution and performance of this Agreement is not a violation or breach of any
other agreement between the Company and any other person or entity;
and

     

    (d)           This
Agreement is a legal, valid and binding agreement of the Company, enforceable in
accordance with its terms.

     

    5.    RELEASE BY TLR
CONSULTING.  TLR Consulting, on behalf of itself, its
predecessors, successors, assigns, partners, members, managers, affiliates,
subsidiaries, officers, employees, attorneys, and agents, past, present and
future, hereby fully, finally and completely RELEASE AND FOREVER DISCHARGE the
Company and its predecessors, successors, assigns, partners, affiliates,
subsidiaries, officers, shareholders, directors, employees, attorneys, and
agents, past, present and future (the “Company Released
Parties”), of and from any and all actions, causes of action, suits,
debts, disputes, damages, claims, obligations, liabilities, and demands of any
kind whatsoever, at law or in equity, whether matured or unmatured, liquidated
or unliquidated, vested or contingent, known or unknown, with respect to matters
arising in connection with the Note (including principal, any interest thereon
or other fees or obligations related thereto) that TLR Consulting had, now has,
or hereafter may have against the Company Released Parties or any of them (the
“TLR
Consulting Claims”).  TLR Consulting hereby agrees that it will
not assert, and that it is estopped from asserting, against any and all of the
Company Released Parties, any TLR Consulting Claims that are released in this
Agreement.

     

    6.    INDEMNIFICATION.  TLR
Consulting agrees to hold the Company, its subsidiaries, officers, directors,
employees and agents and their respective heirs, representatives, successors,
and assigns harmless and to indemnify them against all liabilities, costs, and
expenses (including reasonable attorneys’ fees) incurred by them in connection
with the transaction contemplated in this Agreement or as a result of any sale
or distribution of the Units or Warrant Consideration by TLR Consulting in
violation of this Agreement, the Participation Agreement, the Warrant
Certificate or any applicable securities laws or any misrepresentation by TLR
Consulting herein, including without limitation any claims made by any third
persons in respect of any right to the Note or the indebtedness represented
thereby.

     

    7.    ENTIRE
AGREEMENT.  This Agreement, the Participation Agreement and the
Warrant Certificate constitute the entire agreement between the Parties as to
the subject matter hereof.  There are no verbal understandings,
agreements, representations or warranties that are not expressly set forth
herein.  This Agreement shall not be changed orally, but only in
writing signed by the Parties.

     

    8.    SEVERABILITY.  Any
provision of this Agreement which is for any reason prohibited or found or held
invalid or unenforceable by any court or governmental agency shall be
ineffective to the extent of such prohibition or invalidity or unenforceability,
without invalidating the remaining provisions hereof in such jurisdiction or
affecting the validity or enforceability of such provision in any other
jurisdiction.

     

    9.    BINDING
EFFECT.  This Agreement shall be binding upon and inure to the
benefits of the Parties, their respective successors and assigns.

     

    10.         GOVERNING
LAW.  This Agreement shall be governed by and construed,
enforced and interpreted in accordance with the laws of the State of Nebraska
(without regard to principles of conflicts of laws).  The Parties
consent to the sole and exclusive jurisdiction of the state courts and U.S.
federal courts having jurisdiction in Douglas County, Nebraska for any dispute
arising out of this Agreement.

     

    
      
        
        

      

      
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    11.         COUNTERPARTS; ELECTRONIC
DELIVERY.  This Agreement may be executed in any number of
original counterparts, each of which having been so executed and delivered shall
be deemed an original and all of which, collectively, shall constitute one
agreement; it being understood and agreed that the signature pages may be
detached from one or more such counterparts and combined with the signature
pages from any other counterparts in order that one or more fully executed
originals may be assembled.  A copy of an executed counterpart
signature page signed by a Party may be delivered by facsimile or other
electronic transmission and, upon such delivery, a print out of the transmitted
signature of such Party will have the same effect as if a counterpart of this
Agreement bearing an original signature of that Party had been delivered to the
other Party.

     

    [signature
page follows]

     

     

    
      
        
        

      

      
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    IN
WITNESS WHEREOF, the Parties hereto have executed and delivered this Agreement
in Omaha, Nebraska effective as of the day and year first above
written.

     

    
      
        	 	TLR CONSULTING,
      LLC 
	 	 
	 	 
	 	By:         
      TLR Consulting
      LLC                                      
      
	 	Name:     /s/ Terry L
      Rohlfing                                        
      
	 	
                Title:       Owner                                               

              
	 	 
	 	 
	 	GABRIEL TECHNOLOGIES
      CORPORATION 
	 	 
	 	 
	 	By:        
      /s/ Ronald
      Gillum                                               
	 	Name:   
      RONALD GILLUM 
	 	Title:     
      President 

      

     

     

    
      
        
        

      

      
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    EXHIBIT
A

    

    FORM
OF STOCK EQUIVALENT UNIT PARTICIPATION AGREEMENT

    

    

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
GABRIEL
TECHNOLOGIES CORPORATION

    STOCK
EQUIVALENT UNIT

    PARTICIPATION
AGREEMENT

    

    STOCK EQUIVALENT UNIT PARTICIPATION
AGREEMENT (this “Agreement”) entered
into this 5th day of May, 2008 (the “Effective Date”),
between GABRIEL TECHNOLOGIES
CORPORATION, a Delaware corporation (the “Corporation”), and
TLR
CONSULTING, LLC, a South Carolina limited liability company (the “Holder”).

    

    WHEREAS, the Holder has loaned
$175,000 to the Corporation, evidenced by or resulting in a note payable or
other obligation of the Corporation to Holder (the “Obligation”), and has
agreed to exchange the Obligation for 477,500 Units (as defined below), as well
as certain other consideration, under that certain Obligation Exchange Agreement
and Release between the Corporation and the Holder, dated as of May 5th, 2008
(the “Obligation
Exchange Agreement”); and

    

    WHEREAS, the Corporation and
the Holder desire to memorialize and set out their respective rights and
obligations with respect to the Units.

    

    NOW, THEREFORE, in
consideration of the mutual premises and undertakings set forth herein and other
good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:

    

    1.           Definitions.  The
following words have the following meanings for purposes of this
Agreement.

     

    

    (a)   “Change of Control”
means the earliest date upon which one of the following events
occurs:

    

    (i)           Acquisition
by any individual, entity, or group (within the meaning of Section 13(d)(3) or
14(d)(2)  of the Securities Exchange Act of 1934, as amended (the
“Exchange Act”)
(a “Person”) of
beneficial ownership (within the meaning of Rule 13d-3 promulgated under the
Exchange Act) of 35% or more of either (A) the Shares (as defined below) or (B)
the combined voting power of the then-outstanding voting securities of the
Corporation entitled to vote generally in the election of directors of the
Corporation; provided, however, that for purposes of this Subsection (i), the
following acquisitions shall not constitute a Change of Control: (A) any
acquisition directly from the Corporation, (B) any acquisition by the
Corporation, (C) any acquisition by any employee  benefit plan (or
related trust) sponsored or maintained by the Corporation or any affiliated
company, or (D) any acquisition by any corporation pursuant to a transaction
that complies with clauses (A), (B), or (C) of Subsection (ii)
below);

    

    (ii)           Consummation
of a reorganization, merger, consolidation or sale or other disposition of all
or a significant part of the assets (other than in the ordinary course of
business) of the Corporation or of any of the Corporation’s wholly or partly
owned subsidiary companies, including without limitation Trace Technologies,
LLC, a Nebraska limited liability company (a “Business
Combination”), in each case, unless, following
such Business Combination, (A) all or substantially all of the individuals and
entities that were the beneficial holders of the Shares (as defined below)
immediately prior to such Business Combination beneficially own, directly or
indirectly, more than 60% of the then-outstanding shares of common stock and the
combined voting power of the then-outstanding voting securities entitled to vote
generally in the election of directors, as the case may be, of the corporation
resulting from such Business Combination (including, without limitation, a
corporation that, as a result of such Business Combination, owns the Corporation
or all or substantially all of the Corporation‘s assets either directly or
through one or more subsidiaries) in substantially the same proportions as their
ownership of the Shares immediately prior to such Business Combination, (B) no
Person (excluding any corporation resulting from such Business Combination or
any 

     

    
      
        
        

      

      
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    employee
benefit plan (or related trust) of the Corporation or such corporation resulting
from such Business Combination) beneficially owns, directly or indirectly, 35%
or more of, respectively, the then-outstanding shares of common stock of the
corporation resulting from such Business Combination or the combined voting
power of the then-outstanding voting securities of such corporation, except to
the extent that such ownership existed prior to the Business Combination, and
(C) at least a majority of the members of the board of directors of the
corporation resulting from such Business Combination were members of the
Corporation’s Board at the time of the execution of the initial agreement or of
the action of the Board providing for such Business Combination; or

    

    (iii)           Approval
by the stockholders of the Corporation of a complete liquidation or dissolution
of the Corporation.

    

    (b)    “Dividend Distribution
Date” means the date on which the Corporation pays a cash dividend to the
holder of a Share.

    

    (c)    “Settlement Date”
means the date upon which the Stockholders of the Corporation receive proceeds
resulting from a Change of Control.

    

    (d)    “Share” means one
share and “Shares” means more
than one share of the Corporation’s issued and outstanding common stock, $0.001
par value, as the same is constituted from time to time.

    

    (e)    “Stockholder” means a
holder of Shares.

    

    (f)    “Unit” means a
contractual right of the Holder to receive a certain amount or value of property
from the Corporation equal to a certain amount or value of property received by
a Stockholder with respect to a Share, in accordance with the terms and
conditions of this Agreement.

     

    2.    Acknowledgement of Receipt
of Units and Cancellation of Obligation.

     

    (a)   The Holder hereby
acknowledges receipt of 477,500 Units from the Corporation under the Obligation
Exchange Agreement and agrees that such Units shall be subject to the terms and
conditions of this Agreement.  Holder further acknowledges and agrees
that such Units were received in exchange for the cancellation of the
Corporation’s Obligation, as described in the Obligation Exchange
Agreement.

     

    (b)           The
Corporation hereby acknowledges the issuance of 477,500 Units to the Holder under the Obligation
Exchange Agreement and agrees that such Units shall be subject to the terms and
conditions of this Agreement.  The Corporation further
acknowledges and agrees that such Units were issued in exchange for the
cancellation of the Corporation’s Obligation, as described in the Obligation
Exchange Agreement.

    

    3.           Rights of
Holders of Units.  In accordance with the terms of this
Agreement, on the Settlement Date and each Dividend Distribution Date, if any,
the Holder of a Unit, with respect to each Unit held, shall be entitled to
receive an amount equal to the value of the amount paid or distributed to each
Stockholder with respect to each Share, in the form of cash or, at the election
of the Corporation, other property with a value equal to the property otherwise
distributable or payable under the terms of this Agreement.  Any such
amount or 

     

    
      
        
        

      

      
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    distribution
to which a Holder becomes entitled shall be paid or made by the Corporation to
such Holder within five (5) Business Days (as defined below) of such Settlement
Date or Dividend Distribution Date.  By way of illustration of the
amounts or distributions to which a Holder may become entitled, if on the
Settlement Date, a Stockholder of the Corporation receives $1.00 for each Share
held by such Stockholder, then Holder will receive a cash payment equal to $1.00
times the number of Units held by Holder.  Similarly, if on the
Settlement Date, each Stockholder of the Corporation receives 5 shares of common
stock of the acquiring company, with a value of $2.00, for each Share held by
such Stockholder, then Holder will receive, at the Corporation’s election,
either (a) a cash payment equal to $2.00 times the number of Units held by
Holder, or (b) 5 shares of common stock of the acquiring company for each Unit
held by Holder.  Likewise, if on the Dividend Distribution Date, each
Stockholder of the Corporation receives a Dividend Distribution Payment of $0.25
per Share in cash, then Holder will receive a cash payment equal to $0.25 times
the number of Units held by the Holder.  The Corporation shall have
the right to deduct, from any payment or distribution hereunder, any taxes
required by law to be withheld from the Holder with respect to such payment or
distribution and, in furtherance thereof, Holder shall provide any documentation
or completed form as may be requested by Corporation related to or in connection
with the determination of any such withholding.  For the avoidance of
doubt, amounts will only be payable or distributable under this Agreement upon
the occurrence of an event specifically described herein and, further, no amount
shall be payable or distributable to a Holder upon the mere change in value of a
Share in the absence of such occurrence.

    

    4.           No Rights
as a Stockholder.  The Holder, in
its capacity as a Holder of Units, shall have no rights as a Stockholder of the
Corporation.  No Shares or other equity interest in the Corporation
shall be issued pursuant to this Agreement.

     

    5.           Adjustments to Units; No
Limitation on Corporation Action.

     

    (a)           In
the event of a change in the number of Shares by reason of the Corporation
implementing any stock dividend or split, recapitalization, merger,
consolidation, spin-off, reorganization, combination or exchange of shares or
other similar corporate change, so long as such change does not result in a
Change of Control, the Corporation shall adjust the number of Units issued to
Holder in the Holder’s Account (as defined in Section 7) as is necessary and
appropriate and, further, any such adjustment made shall be conclusive and
binding on the parties hereto.

     

    (b)           Notwithstanding
the foregoing, the issuance by the Corporation of shares of its capital stock of
any class, or securities convertible into shares of capital stock of any class,
either in connection with a direct sale or upon the exercise of rights or
warrants to subscribe therefor, or upon conversion of shares or obligations of
the Corporation convertible into such shares or other securities, shall not
affect, and no adjustment by reason thereof shall be made with respect to, the
number of Units covered by this Agreement.

     

    (c)           For
the avoidance of doubt and without limiting the generality of the foregoing, the
existence of the Units shall not affect in any manner the right or power of the
Corporation to make, authorize or consummate (i) any or all adjustments,
recapitalizations, reorganizations or other changes in the Corporation’s capital
structure or its business; (ii) any merger or consolidation of the Corporation;
(iii) the dissolution or liquidation of the Corporation; (iv) any sale, transfer
or assignment of all or any part of the assets or business of the Corporation;
or (v) any other corporate act or proceeding, whether of a similar character or
otherwise.

     

    6.           Representations
and Warranties of Holders of Units.  As of the
Effective Date and the date of execution of the Obligation Exchange Agreement,
the Holder represents and warrants that:

    

    
      
        
        

      

      
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    (a)           The
Holder has had access to all information regarding the Corporation and its
present and prospective business, assets, liabilities and financial condition
that the Holder reasonably considers important in connection with the Units,
this Agreement, and the Obligation Exchange Agreement, and the Holder has had
ample opportunity to ask questions of the Corporation’s representatives (and any
such questions have been answered to Holder’s satisfaction) concerning such
matters.

     

    (b)           The
Holder is fully aware of: (i) the highly speculative nature of the future
potential financial returns on or from the Units, (ii) the financial risks and
hazards involved in the future potential financial returns on or from the Units,
and (iii) the tax consequences of executing and participating in this Agreement
and the Obligation Exchange Agreement.

     

    (c)           The
Corporation has made no representations or warranties to the Holder with respect
to the tax consequences (including, without limitation, the federal, state and
local income tax consequences) related to or that could arise from executing and
participating in this Agreement and the Obligation Exchange Agreement, and the
Holder is in no manner relying on the Corporation or its representatives for an
assessment of such tax consequences.

     

    (d)           The
Holder has been advised that Holder should consult with his own attorney,
accountant, and/or tax advisor regarding the decision to enter into and
participate in this Agreement and the Obligation Exchange Agreement and the tax,
financial, and/or other consequences thereof, and, further, the Corporation has
no responsibility to take or refrain from taking any action or actions in order
to achieve a certain tax or financial result for the Holder.

     

    7.           Stock
Equivalent Unit Account.  Each Unit shall
be evidenced by an entry on the books of the Corporation (an “Account”).  Each
Account shall be the record of Units issued to Holder pursuant to the Obligation
Exchange Agreement and this Agreement and shall be solely for accounting
purposes.  Amounts payable or distributable hereunder shall be paid or
distributed exclusively from the general assets of the Corporation, and no
Holder entitled to payment or distribution hereunder shall have any claim,
right, security interest, or other interest in any fund, trust, account,
insurance contract, or asset of the Corporation from which a payment or
distribution may be made.  The rights of a Holder of a Unit hereunder
shall be solely those of an unsecured creditor of the
Corporation.  The Corporation’s liability for payments or
distributions hereunder, if any, shall be evidenced only by this
Agreement.

     

    8.           Restriction
on Transfer.  The Units may not
be assigned or transferred except by will, by the laws of descent and
distribution, or pursuant to a qualified domestic relations order as defined in
the Internal Revenue Code of 1986, as amended.  If the Holder dies,
the Units shall transfer to a person who acquired the right to the Units by
bequest or inheritance. The Units shall not be subject to execution, attachment
or similar process.  Any attempted assignment or transfer of the Units
contrary to the provisions hereof, and the levy of any execution, attachment or
similar process upon the Units, shall be null and void and without
effect.

     

    9.           Notices.  All notices or
other communications which are required or permitted hereunder shall be in
writing and sufficient if (i) personally delivered, (ii) sent by
nationally-recognized overnight courier or (iii) sent by registered or certified
mail, postage prepaid, return receipt requested, addressed as
follows:

     

    
      
        
        

      

      
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    if to the
Holder, to the address set forth on the signature page hereto; and

    if to the
Corporation, to:

    

    Gabriel
Technologies Corporation

    Attention:
Ronald Gillum

    4538 S.
140th
Street

    Omaha,
NE  68137

    

    or to
such other address as the party to whom notice is to be given may have furnished
to each other party in writing in accordance herewith.  Any such
communication shall be deemed to have been given (i) when delivered, if
personally delivered, (ii) on the first Business Day (as hereinafter defined)
after dispatch, if sent by nationally-recognized overnight courier and (iii) on
the third Business Day following the date on which the piece of mail containing
such communication is posted, if sent by mail.  As used herein, “Business Day” means a
day that is not a Saturday, Sunday or a day on which banking institutions in the
city to which the notice or communication is to be sent are not required to be
open.

    

    10.           No
Waiver.  No waiver of any
breach or condition of this Agreement shall be deemed to be a waiver of any
other or subsequent breach or condition, whether of like or different
nature.

     

    11.           Holder
Undertaking / Indemnification.  The Holder hereby
agrees to take whatever additional actions and execute whatever additional
documents the Corporation or its counsel may in their reasonable judgment deem
necessary or advisable in order to carry out or effect one or more of the
obligations or restrictions imposed on the Holder pursuant to the express
provisions of this Agreement.  Holder agrees to hold the Corporation,
its subsidiary companies, officers, directors, employees and agents and their
respective heirs, representatives, successors, and assigns harmless and to
indemnify them against all liabilities, costs, and expenses (including
reasonable attorneys’ fees) incurred by them as a result of any
misrepresentation made by Holder herein or any other breach or violation by
Holder of this Agreement or the Obligation Exchange Agreement.

     

    12.           Governing
Law.  This Agreement
shall be governed by and construed, enforced and interpreted in accordance with
the laws of the State of Nebraska (without regard to principles of conflicts of
laws).  The Parties consent to the sole and exclusive jurisdiction of
the state courts and U.S. federal courts having jurisdiction in Douglas County,
Nebraska for any dispute arising out of this Agreement.

     

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

     

    14.           Entire
Agreement.  This Agreement,
with the Obligation Exchange Agreement, constitutes the entire agreement between
the parties with respect to the subject matter hereof, and supersedes all prior
written or oral negotiations, commitments, representations and agreements with
respect thereto.

     

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    IN WITNESS WHEREOF, the parties hereto
have executed this Agreement as of the date set forth above.

     

    
    

     

    
      	 	Gabriel Technologies
      Corporation 
	 	 
	 	
              By:     
      /s/ Ronald Gillum

              Name:
      Ronald Gillum

              Title:    President 

            
	 	 
	 	 
	 	HOLDER: 
	 	 
	 	
              TLR
      Consulting

              Name:  /s/
      [Terry L Rohlfing

              Address:        57
      BAYWARD COVE

                      HILTON
      HEAD IS S.C. 29928 

            
	 	 

    

     

    
 

    
      
        
        

      

      
        A-7

        
          

        

      

      
        
        

      

    

    

    EXHIBIT
B

    

    FORM
OF WARRANT

    

    
 

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
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

    FOR
THE PURCHASE OF STOCK EQUIVALENT UNITS OF

    GABRIEL
TECHNOLOGIES CORPORATION

    INCORPORATED
UNDER THE LAWS OF

    THE
STATE OF DELAWARE

     

    1.1           Basic
Terms.   This certifies that, in connection with that
certain Obligation Exchange Agreement and Release dated May 5th, 2008 by and
between Gabriel Technologies Corporation, a Delaware corporation (the “Company”)
and TLR Consulting, LLC, 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 477,500 stock equivalent units (“Units”), of 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 Unit
purchased.  The term “Warrant Units,” as used herein, refers to the
Units purchasable hereunder.

    

    
      	
              Registered
      Owner:

            	
              TLR
      Consulting, LLC

            
	 	 
	Purchase
      Price:   	Forty
      Cents ($0.40) a Unit 

    

     

    
      	
              Expiration
      Date:

            	
              3:00pm
      Central Time December 30, 2009, unless terminated sooner under this
      Warrant.

            

    

    

    1.2           Company’s Covenants as to
Units.   Upon exercise of this Warrant, both the Company
and the Registered Owner purchasing Units pursuant to the terms of this Warrant
shall enter into a Stock Equivalent Unit Participation Agreement in the form of
Attachment 1
hereto (the “Participation Agreement”). The Units shall not be certificated,
will be governed by the Participation Agreement, and will be represented solely
by an account to be maintained by the Company as set forth in the Participation
Agreement.

    

    1.3           Method of Exercise; Fractional
Units.   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 Units are to be issued upon the exercise
of this Warrant.  In lieu of issuing a fraction of a Unit remaining
after exercise of this Warrant as to all full Units covered hereby, the Company
shall either (a) pay therefor cash equal to the same fraction of the then
current Purchase Price per Unit 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 full Unit on surrender of
scrip aggregating a full Unit.  Scrip may become void after a
reasonable period (but not less than six months after the expiration date of
this Warrant) determined by the Board of Directors and specified in the
scrip.  In case of the exercise of this Warrant for less than all the
Units 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 Units
purchasable.

     

    
      
        
        

      

      
        B-2

        
          

        

      

      
        
        

      

       

    

    1.4           Adjustment of Units Available for
Purchase.   The number of Units available for purchase
hereunder and the Purchase Price per Unit 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 or Unit holder 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 Units 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 Units
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 1.13.

     

    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           Adjustment to Units. In the
event of a change in the number of outstanding shares of the Company’s common
stock, $0.001 par value (“Common Stock”) by reason of implementation of any
stock dividend or split, recapitalization or other similar corporate change, the
Company shall proportionately adjust the Purchase Price and number of Units
available for purchase under this Warrant as is necessary and appropriate (the
price to the nearest cent) and, further, any such adjustment made shall be
conclusive and binding on the Registered Owner. Irrespective of any adjustment
or change in the Purchase Price or the number of Units purchasable under this or
any other Warrant of like tenor, the Warrants theretofore and thereafter issued
may continue to express the Purchase Price per Unit and the number of Units
available for purchase as the Purchase Price per Unit and the number of Units
available for purchase were expressed in the Warrants when initially
issued.

     

    1.10           Notice of
Adjustment.   On the happening of an event requiring an
adjustment of the Purchase Price or the Units 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.

     

    1.11           Notice and Effect of Certain
Transactions.   In case a voluntary or involuntary
dissolution, liquidation, or winding up of the Company, or a merger,
consolidation, ale of all or substantially all of the assets of the Company or
other similar transaction 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 Units 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 Units 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.

     

    
      
        
        

      

      
        B-3

        
          

        

      

      
        
        

      

       

    

    1.12           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.

     

    1.13           Restriction on
Transfer.  The Warrant may not be assigned or transferred
except by will, by the laws of descent and distribution, or pursuant to a
qualified domestic relations order as defined in the Internal Revenue Code of
1986, as amended.  If the Registered Owner dies, the Warrant shall
transfer to a person who acquired the right to the Warrant by bequest or
inheritance. The Warrant shall not be subject to execution, attachment or
similar process.  Any attempted assignment or transfer of the Warrant
contrary to the provisions hereof, and the levy of any execution, attachment or
similar process upon the Warrant, shall be null and void and without
effect.

     

    1.13    Cashless
Exercise.  Notwithstanding anything to the contrary herein, the
Warrants shall be eligible for “cashless exercise.” 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 Units determined by
dividing (i) (A) the aggregate Market Value of an equal number of shares of the
Company’s Common Stock as the number of Units issuable upon exercise of this
Warrant, minus (B) the aggregate Purchase Price of such Warrant Units, by (ii)
the Market Value of one share of the Company’s Common Stock.  “Market
Value” as of any date, means (x) the average of the last reported sale prices on
the principal trading market for the Company’s 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 Warrant was being exercised for 250,000 on such date, the
Registered Owner could elect to exercise this Warrant for 216,666 Units on a
cashless basis [((250,000 x $3.00) – (250,000 x $.40)), divided by $3.00 =
216,666 Units].  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.

     

    1.14    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.

     

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

     

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

    

    
      
        
        

      

      
        B-4

        
          

        

      

      
        
        

      

       

    

    Dated
this 5th day of May 2008.

     

    
      	 	GABRIEL TECHNOLOGIES
      CORPORATION 
	 	 
	 	 
	 	By:        
      /s/ Ronald
      Gillum                                         
      
	 	Name:    Ronald
      Gillum                                               
      
	 	Title:      President                                                       
      

    

     

     

    AGREED AND
ACCEPTED:

    

    TLR
CONSULTING, LLC

    

    By:  TLR
Consulting LLC

    Name: /s/
Terry L Rohlfing

    Title:
OWNER

     

    
      
        
        

      

      
        B-5

        
          

        

      

      
        
        

      

    

    
ATTACHMENT
1

    

    FORM OF STOCK EQUIVALENT UNIT
PARTICIPATION AGREEMENT

     

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    GABRIEL
TECHNOLOGIES CORPORATION

    STOCK
EQUIVALENT UNIT

    PARTICIPATION
AGREEMENT

    

    STOCK EQUIVALENT UNIT PARTICIPATION
AGREEMENT (this “Agreement”) entered
into this 5th day of May, 2008 (the “Effective Date”),
between GABRIEL TECHNOLOGIES
CORPORATION, a Delaware corporation (the “Corporation”), and
________________________
(the “Holder”).

    

    WHEREAS, the Holder has
submitted an Exercise Form and tendered the applicable Purchase Price to
purchase _______________ stock equivalent Units (defined below) as provided in
that certain Warrant Certificate issued to Holder dated May 5th, 2008 (the
“Warrant”);

    

    NOW, THEREFORE, in
consideration of the mutual premises and undertakings set forth herein and other
good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:

    

    1.           Definitions.  The
following words have the following meanings for purposes of this
Agreement.

     

    (g)   “Change of Control”
means the earliest date upon which one of the following events
occurs:

    

    (i)           Acquisition
by any individual, entity, or group (within the meaning of Section 13(d)(3) or
14(d)(2)  of the Securities Exchange Act of 1934, as amended (the
“Exchange Act”)
(a “Person”) of
beneficial ownership (within the meaning of Rule 13d-3 promulgated under the
Exchange Act) of 35% or more of either (A) the Shares (as defined below) or (B)
the combined voting power of the then-outstanding voting securities of the
Corporation entitled to vote generally in the election of directors of the
Corporation; provided, however, that for purposes of this Subsection (i), the
following acquisitions shall not constitute a Change of Control: (A) any
acquisition directly from the Corporation, (B) any acquisition by the
Corporation, (C) any acquisition by any employee  benefit plan (or
related trust) sponsored or maintained by the Corporation or any affiliated
company, or (D) any acquisition by any corporation pursuant to a transaction
that complies with clauses (A), (B), or (C) of Subsection (ii)
below);

    

    (ii)           Consummation
of a reorganization, merger, consolidation or sale or other disposition of all
or a significant part of the assets (other than in the ordinary course of
business) of the Corporation or of any of the Corporation’s wholly or partly
owned subsidiary companies, including without limitation Trace Technologies,
LLC, a Nebraska limited liability company (a “Business
Combination”), in each case, unless, following
such Business Combination, (A) all or substantially all of the individuals and
entities that were the beneficial holders of the Shares (as defined below)
immediately prior to such Business Combination beneficially own, directly or
indirectly, more than 60% of the then-outstanding shares of common stock and the
combined voting power of the then-outstanding voting securities entitled to vote
generally in the election of directors, as the case may be, of the corporation
resulting from such Business Combination (including, without limitation, a
corporation that, as a result of such Business Combination, owns the Corporation
or all or substantially all of the Corporation‘s assets either directly or
through one or more subsidiaries) in substantially the same proportions as their
ownership of the Shares immediately prior to such Business Combination, (B) no
Person (excluding any corporation resulting from such Business Combination or
any employee benefit plan (or related trust) of the Corporation or such
corporation resulting from such Business Combination) beneficially owns,
directly or indirectly, 35% or more of, respectively, the then-outstanding
shares of common stock of the corporation resulting from such Business
Combination or the combined voting power of the then-outstanding voting
securities of such corporation, except to the extent that such ownership existed
prior to the Business Combination, and (C) at least a majority of the members of
the board of directors of the corporation resulting from such Business
Combination were members of the Corporation’s Board at the time of the execution
of the initial agreement or of the action of the Board providing for such
Business Combination; or

    

    
      
        
        

      

      
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    (iii)           Approval
by the stockholders of the Corporation of a complete liquidation or dissolution
of the Corporation.

    

    (h)    “Dividend Distribution
Date” means the date on which the Corporation pays a cash dividend to the
holder of a Share.

    

    (i)    “Settlement Date”
means the date upon which the Stockholders of the Corporation receive proceeds
resulting from a Change of Control.

    

    (j)    “Share” means one
share and “Shares” means more
than one share of the Corporation’s issued and outstanding common stock, $0.001
par value, as the same is constituted from time to time.

    

    (k)    “Stockholder” means a
holder of Shares.

    

    (l)    “Unit” means a
contractual right of the Holder to receive a certain amount or value of property
from the Corporation equal to a certain amount or value of property received by
a Stockholder with respect to a Share, in accordance with the terms and
conditions of this Agreement.

     

    2.           Acknowledgement of Receipt
of Units and Cancellation of Obligation.

     

    (a)           The
Holder hereby acknowledges receipt of ________ Units from the Corporation upon
exercise of the Warrant and agrees that such Units shall be subject to the terms
and conditions of this Agreement.  Holder further acknowledges and
agrees that such Units were received in exchange for the Purchase Price, as
described in the Warrant.

     

    (b)           The
Corporation hereby acknowledges the issuance of ________Units to the Holder upon exercise of the
Warrant and agrees that such Units shall be subject to the terms and conditions
of this Agreement.  The Corporation further
acknowledges and agrees that such Units were issued in exchange for the Purchase
Price, as described in the Warrant.

    

    3.           Rights of
Holders of Units.  In accordance with the terms of this
Agreement, on the Settlement Date and each Dividend Distribution Date, if any,
the Holder of a Unit, with respect to each Unit held, shall be entitled to
receive an amount equal to the value of the amount paid or distributed to each
Stockholder with respect to each Share, in the form of cash or, at the election
of the Corporation, other property with a value equal to the property otherwise
distributable or payable under the terms of this Agreement.  Any such
amount or distribution to which a Holder becomes entitled shall be paid or made
by the Corporation to such Holder within five (5) Business Days (as defined
below) of such Settlement Date or Dividend Distribution Date.  By way
of illustration of the amounts or distributions to which a Holder may become
entitled, if on the Settlement Date, a Stockholder of the Corporation receives
$1.00 for each Share held by such Stockholder, then Holder will receive a cash
payment equal to $1.00 times the number of Units held by
Holder.  Similarly, if on the Settlement Date, each Stockholder of the
Corporation receives 5 shares of common stock of the acquiring company, with a
value of $2.00, for each Share held by such Stockholder, then Holder
will

     

    
      
        
        

      

      
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     receive,
at the Corporation’s election, either (a) a cash payment equal to $2.00 times
the number of Units held by Holder, or (b) 5 shares of common stock of the
acquiring company for each Unit held by Holder.  Likewise, if on the
Dividend Distribution Date, each Stockholder of the Corporation receives a
Dividend Distribution Payment of $0.25 per Share in cash, then Holder will
receive a cash payment equal to $0.25 times the number of Units held by the
Holder.  The Corporation shall have the right to deduct, from any
payment or distribution hereunder, any taxes required by law to be withheld from
the Holder with respect to such payment or distribution and, in furtherance
thereof, Holder shall provide any documentation or completed form as may be
requested by Corporation related to or in connection with the determination of
any such withholding.  For the avoidance of doubt, amounts will only
be payable or distributable under this Agreement upon the occurrence of an event
specifically described herein and, further, no amount shall be payable or
distributable to a Holder upon the mere change in value of a Share in the
absence of such occurrence.

    

    4.           No Rights
as a Stockholder.  The Holder, in
its capacity as a Holder of Units, shall have no rights as a Stockholder of the
Corporation.  No Shares or other equity interest in the Corporation
shall be issued pursuant to this Agreement.

     

    5.           Adjustments to Units; No
Limitation on Corporation Action.

     

    (a)           In
the event of a change in the number of Shares by reason of the Corporation
implementing any stock dividend or split, recapitalization, merger,
consolidation, spin-off, reorganization, combination or exchange of shares or
other similar corporate change, so long as such change does not result in a
Change of Control, the Corporation shall adjust the number of Units issued to
Holder in the Holder’s Account (as defined in Section 7) as is necessary and
appropriate and, further, any such adjustment made shall be conclusive and
binding on the parties hereto.

     

    (b)           Notwithstanding
the foregoing, the issuance by the Corporation of shares of its capital stock of
any class, or securities convertible into shares of capital stock of any class,
either in connection with a direct sale or upon the exercise of rights or
warrants to subscribe therefor, or upon conversion of shares or obligations of
the Corporation convertible into such shares or other securities, shall not
affect, and no adjustment by reason thereof shall be made with respect to, the
number of Units covered by this Agreement.

     

    (c)           For
the avoidance of doubt and without limiting the generality of the foregoing, the
existence of the Units shall not affect in any manner the right or power of the
Corporation to make, authorize or consummate (i) any or all adjustments,
recapitalizations, reorganizations or other changes in the Corporation’s capital
structure or its business; (ii) any merger or consolidation of the Corporation;
(iii) the dissolution or liquidation of the Corporation; (iv) any sale, transfer
or assignment of all or any part of the assets or business of the Corporation;
or (v) any other corporate act or proceeding, whether of a similar character or
otherwise.

     

    6.           Representations
and Warranties of Holders of Units.  As of the
Effective Date and the date of exercise of the Warrant, the Holder represents
and warrants that:

    

    (a)           The
Holder has had access to all information regarding the Corporation and its
present and prospective business, assets, liabilities and financial condition
that the Holder reasonably considers important in connection with the Units,
this Agreement, and the Warrant, and the Holder has had ample opportunity to ask
questions of the Corporation’s representatives (and any such questions have been
answered to Holder’s satisfaction) concerning such matters.

    

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

       

    

    (b)           The
Holder is fully aware of: (i) the highly speculative nature of the future
potential financial returns on or from the Units, (ii) the financial risks and
hazards involved in the future potential financial returns on or from the Units,
and (iii) the tax consequences of executing and participating in this Agreement
and exercising the Warrant.

     

    (c)           The
Corporation has made no representations or warranties to the Holder with respect
to the tax consequences (including, without limitation, the federal, state and
local income tax consequences) related to or that could arise from executing and
participating in this Agreement and exercise of the Warrant, and the Holder is
in no manner relying on the Corporation or its representatives for an assessment
of such tax consequences.

     

    (d)           The
Holder has been advised that Holder should consult with his own attorney,
accountant, and/or tax advisor regarding the decision to enter into and
participate in this Agreement and exercise of the Warrant and the tax,
financial, and/or other consequences thereof, and, further, the Corporation has
no responsibility to take or refrain from taking any action or actions in order
to achieve a certain tax or financial result for the Holder.

    

    7.           Stock
Equivalent Unit Account.  Each Unit shall
be evidenced by an entry on the books of the Corporation (an “Account”).  Each
Account shall be the record of Units issued to Holder pursuant to the Warrant
and this Agreement and shall be solely for accounting
purposes.  Amounts payable or distributable hereunder shall be paid or
distributed exclusively from the general assets of the Corporation, and no
Holder entitled to payment or distribution hereunder shall have any claim,
right, security interest, or other interest in any fund, trust, account,
insurance contract, or asset of the Corporation from which a payment or
distribution may be made.  The rights of a Holder of a Unit hereunder
shall be solely those of an unsecured creditor of the
Corporation.  The Corporation’s liability for payments or
distributions hereunder, if any, shall be evidenced only by this
Agreement.

    

    8.           Restriction
on Transfer.  The Units may not
be assigned or transferred except by will, by the laws of descent and
distribution, or pursuant to a qualified domestic relations order as defined in
the Internal Revenue Code of 1986, as amended.  If the Holder dies,
the Units shall transfer to a person who acquired the right to the Units by
bequest or inheritance. The Units shall not be subject to execution, attachment
or similar process.  Any attempted assignment or transfer of the Units
contrary to the provisions hereof, and the levy of any execution, attachment or
similar process upon the Units, shall be null and void and without
effect.

     

    9.           Notices.  All notices or
other communications which are required or permitted hereunder shall be in
writing and sufficient if (i) personally delivered, (ii) sent by
nationally-recognized overnight courier or (iii) sent by registered or certified
mail, postage prepaid, return receipt requested, addressed as
follows:

     

    if to the
Holder, to the address set forth on the signature page hereto; and

    if to the
Corporation, to:

    

    Gabriel
Technologies Corporation

    Attention:
Ronald Gillum

    4538 S.
140th
Street

    Omaha,
NE  68137

    

    or to
such other address as the party to whom notice is to be given may have furnished
to each other party in writing in accordance herewith.  Any such
communication shall be deemed to have been given (i) when delivered, if
personally delivered, (ii) on the first Business Day (as hereinafter defined)
after dispatch, if sent by nationally-recognized overnight courier and (iii) on
the third Business Day following the date on which the piece of mail containing
such communication is posted, if sent by mail.  As used herein, “Business Day” means a
day that is not a Saturday, Sunday or a day on which banking institutions in the
city to which the notice or communication is to be sent are not required to be
open.

     

    
      
        
        

      

      
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    10.           No
Waiver.  No waiver of any
breach or condition of this Agreement shall be deemed to be a waiver of any
other or subsequent breach or condition, whether of like or different
nature.

     

    11.           Holder
Undertaking / Indemnification.  The Holder hereby
agrees to take whatever additional actions and execute whatever additional
documents the Corporation or its counsel may in their reasonable judgment deem
necessary or advisable in order to carry out or effect one or more of the
obligations or restrictions imposed on the Holder pursuant to the express
provisions of this Agreement.  Holder agrees to hold the Corporation,
its subsidiary companies, officers, directors, employees and agents and their
respective heirs, representatives, successors, and assigns harmless and to
indemnify them against all liabilities, costs, and expenses (including
reasonable attorneys’ fees) incurred by them as a result of any
misrepresentation made by Holder herein or any other breach or violation by
Holder of this Agreement or theWarrant.

     

    12.           Governing
Law.  This Agreement
shall be governed by and construed, enforced and interpreted in accordance with
the laws of the State of Nebraska (without regard to principles of conflicts of
laws).  The Parties consent to the sole and exclusive jurisdiction of
the state courts and U.S. federal courts having jurisdiction in Douglas County,
Nebraska for any dispute arising out of this Agreement.

     

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

     

    14.           Entire
Agreement.  This Agreement,
with the Warrant, constitutes the entire agreement between the parties with
respect to the subject matter hereof, and supersedes all prior written or oral
negotiations, commitments, representations and agreements with respect
thereto.

     

    [remainder
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    IN WITNESS WHEREOF, the parties hereto
have executed this Agreement as of the date set forth above.

     

     

    
      
        	 	Gabriel Technologies
      Corporation 
	 	 
	 	
                By:     
      /s/ Ronald Gillum

                Name:
      Ronald Gillum

                Title:    President 

              
	 	 
	 	 
	 	HOLDER: 
	 	 
	 	
                TLR
      Consulting

                Name:  /s/
      [Terry L Rohlfing

                Address:        57
      BAYWARD COVE

                        HILTON
      HEAD IS S.C. 29928 

              

      

    

     

     

     

    7gabriel_8k-ex1004.htm

    EXHIBIT 10.4

     

    OBLIGATION EXCHANGE
AGREEMENT AND RELEASE

     

    THIS
OBLIGATION EXCHANGE AGREEMENT AND RELEASE (this “Agreement”)
is made and entered into effective as of the 5th day of May, 2008, by and
between Gabriel Technologies Corporation, a Delaware corporation (the “Company”),
and Wayzata, LLC, a South Dakota limited liability company (“Wayzata”).  The
Company and Wayzata are sometimes hereinafter referred to individually as a
“Party” and
collectively as the “Parties”.

     

    WHEREAS,
the Company has an outstanding Promissory Note dated January 23, 2007 in the
original principal amount of $315,000, payable to the order of Wayzata (the
“Note”);

     

    WHEREAS,
as of the date hereof, the Company has paid Wayzata $150,000 in partial
satisfaction of its obligations under the Note; and

     

    WHEREAS,
Wayzata desires to exchange the Note for stock equivalent units of the Company
(“Units”), a
warrant to purchase Units (the “Warrant”),
and certain other consideration provided for herein, and the Company is willing
to do so provided that such exchange settles and releases all outstanding
obligations, debts, and liabilities with respect to the Note pursuant to the
terms of this Agreement.

     

    NOW,
THEREFORE, for good and valuable consideration, the receipt and adequacy of
which are hereby acknowledged and confessed, the Parties agree as
follows:

     

    1.    CONSIDERATION.

     

    (a)    Upon the
execution and delivery of this Agreement by Wayzata to the Company and the
cancellation and delivery of the Note pursuant to Section 2 below, the Company
shall issue:

     

    (i)    477,500 Units
to Wayzata and, concurrent therewith, the Parties shall enter into a Stock
Equivalent Unit Participation Agreement in the form of Exhibit A attached
hereto (the “Participation
Agreement”).  The Units shall not be certificated, will be
governed by this Agreement and the Participation Agreement, and will be
represented solely by an account to be maintained by the Company as set forth in
the Participation Agreement; and

     

    (ii)    a Warrant to
purchase up to 477,500 Units to Wayzata at an exercise price of $0.40 per Unit
(the “Warrant
Consideration”). The Warrant Consideration shall be evidenced by a
Warrant Certificate in the form of Exhibit B attached
hereto (the “Warrant
Certificate”).

     

    (b)    In addition
to the Units and Warrant Consideration described above, Wayzata shall receive
one payment equal to 1% of an IP Event (as defined below), within 10 business
days after the IP Event. For purposes of this Agreement, an “IP Event”
is defined as the receipt by the Company or any of its subsidiaries of net
proceeds of at least $10 million (in cash or the fair market value of non-cash
consideration) from licensing, sale, transfer, settlement or other transaction
with one of more third parties relating to intellectual property of the Company
or its subsidiaries, or a merger, consolidation, share exchange or sale of all
or substantially all of the stock or assets of the Company or its
Subsidiaries.

     

    2.    DELIVERY AND CANCELLATION OF
NOTE.  Concurrent with the execution of the Agreement, Wayzata
shall deliver to the Company the Note which shall be marked “cancelled” by the
Company.  With such delivery and cancellation, Wayzata agrees that all
obligations of the Company in respect to the Note (including without limitation
obligations triggered by an “IP Event” as described in Section 2 of the Note
which are replaced and superseded by the consideration provided for in Section
1(b) of this Agreement) are satisfied or waived and released as herein provided.
Notwithstanding the foregoing, the warrants issued to Wayzata as provided for in
the Note shall remain in effect in accordance with the warrant certificate
delivered by the Company to Wayzata as specified in the Note.

     

    
      
        
        

      

      
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    3.    WAYZATA REPRESENTATIONS AND
WARRANTIES.  As of the date hereof, Wayzata represents and
warrants the following:

     

    (a)    It has not
assigned, pledged, or transferred in any manner to any person or entity any
right, title, or interest to the Note or any of the Wayzata Claims (defined in
Section 5 below);

     

    (b)    It is free to
enter into this Agreement and to perform each of its terms and
covenants;

     

    (c)    It is not
restricted or prohibited, contractually or otherwise, from entering into and
performing this Agreement;

     

    (d)    Its execution
and performance of this Agreement is not a violation or breach of any other
agreement between Wayzata and any other person or entity;

     

    (e)    This
Agreement is a legal, valid and binding agreement of Wayzata, enforceable in
accordance with its terms;

     

    (f)    It recognizes
that acquiring the Units and Warrant Consideration involves a high degree of
risk and is suitable only for persons of adequate financial means who have no
need for liquidity of the Units and Warrant Consideration;

     

    (g)    It (i) is
competent to understand and does understand the nature of the Units and the
Warrant Consideration, and (ii) is able to bear the economic risk of the Units
and Warrant Consideration;

     

    (h)    It is an
accredited investor as defined in Rule 501 of Regulation D promulgated by the
Securities and Exchange Commission under the Securities Act of 1933, as amended
(the “Act”);

     

    (i)    It has
significant prior investment experience, including investment in nonlisted and
nonregistered securities, and recognizes the highly speculative nature of the
Units and Warrant Consideration, and is able to bear the economic risk hereby
assumed;

     

    (j)    All
information regarding the Company which was requested or desired by it has been
furnished, all other documents which could be reasonably provided have been made
available for inspection and review, and it believes that such information is
sufficient to make an informed decision with respect to its acquiring the Units
and Warrant Consideration;

     

    (k)    It is
acquiring the Units and Warrant Consideration for its own account, for
investment, and not for distribution or resale to others; and

     

    (l)    It may not
assign or transfer the Units and/or Warrant Consideration except by will, by the
laws of descent and distribution, or pursuant to a qualified domestic relations
order as defined in the Internal Revenue Code of 1986, as amended.

     

    4.    COMPANY REPRESENTATIONS AND
WARRANTIES.  As of the date hereof, the Company represents and
warrants the following:

     

    
      
        
        

      

      
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    (a)    It is free to
enter into this Agreement and to perform each of its terms and
covenants;

     

    (b)    It is not
restricted or prohibited, contractually or otherwise, from entering into and
performing this Agreement;

     

    (c)    Its execution
and performance of this Agreement is not a violation or breach of any other
agreement between the Company and any other person or entity; and

     

    (d)    This
Agreement is a legal, valid and binding agreement of the Company, enforceable in
accordance with its terms.

     

    5.    RELEASE BY
WAYZATA.  Wayzata, on behalf of itself, its predecessors,
successors, assigns, partners, members, managers, affiliates, subsidiaries,
officers, employees, attorneys, and agents, past, present and future, hereby
fully, finally and completely RELEASE AND FOREVER DISCHARGE the Company and its
predecessors, successors, assigns, partners, affiliates, subsidiaries, officers,
shareholders, directors, employees, attorneys, and agents, past, present and
future (the “Company Released
Parties”), of and from any and all actions, causes of action, suits,
debts, disputes, damages, claims, obligations, liabilities, and demands of any
kind whatsoever, at law or in equity, whether matured or unmatured, liquidated
or unliquidated, vested or contingent, known or unknown, with respect to matters
arising in connection with the Note (including principal, any interest thereon
or other fees or obligations related thereto) that Wayzata had, now has, or
hereafter may have against the Company Released Parties or any of them (the
“Wayzata
Claims”).  Wayzata hereby agrees that it will not assert, and
that it is estopped from asserting, against any and all of the Company Released
Parties, any Wayzata Claims that are released in this Agreement.

     

    6.    INDEMNIFICATION.  Wayzata
agrees to hold the Company, its subsidiaries, officers, directors, employees and
agents and their respective heirs, representatives, successors, and assigns
harmless and to indemnify them against all liabilities, costs, and expenses
(including reasonable attorneys’ fees) incurred by them in connection with the
transaction contemplated in this Agreement or as a result of any sale or
distribution of the Units or Warrant Consideration by Wayzata in violation of
this Agreement, the Participation Agreement, the Warrant Certificate or any
applicable securities laws or any misrepresentation by Wayzata herein, including
without limitation any claims made by any third persons in respect of any right
to the Note or the indebtedness represented thereby.

     

    7.    ENTIRE
AGREEMENT.  This Agreement, the Participation Agreement, and
the Warrant Certificate constitute the entire agreement between the Parties as
to the subject matter hereof.  There are no verbal understandings,
agreements, representations or warranties that are not expressly set forth
herein.  This Agreement shall not be changed orally, but only in
writing signed by the Parties.

     

    8.    SEVERABILITY.  Any
provision of this Agreement which is for any reason prohibited or found or held
invalid or unenforceable by any court or governmental agency shall be
ineffective to the extent of such prohibition or invalidity or unenforceability,
without invalidating the remaining provisions hereof in such jurisdiction or
affecting the validity or enforceability of such provision in any other
jurisdiction.

     

    9.    BINDING
EFFECT.  This Agreement shall be binding upon and inure to the
benefits of the Parties, their respective successors and assigns.

     

    10.   GOVERNING
LAW.  This Agreement shall be governed by and construed,
enforced and interpreted in accordance with the laws of the State of Nebraska
(without regard to principles of conflicts of laws).  The Parties
consent to the sole and exclusive jurisdiction of the state courts and U.S.
federal courts having jurisdiction in Douglas County, Nebraska for any dispute
arising out of this Agreement.

     

    
      
        
        

      

      
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    11.    COUNTERPARTS; ELECTRONIC
DELIVERY.  This Agreement may be executed in any number of
original counterparts, each of which having been so executed and delivered shall
be deemed an original and all of which, collectively, shall constitute one
agreement; it being understood and agreed that the signature pages may be
detached from one or more such counterparts and combined with the signature
pages from any other counterparts in order that one or more fully executed
originals may be assembled.  A copy of an executed counterpart
signature page signed by a Party may be delivered by facsimile or other
electronic transmission and, upon such delivery, a print out of the transmitted
signature of such Party will have the same effect as if a counterpart of this
Agreement bearing an original signature of that Party had been delivered to the
other Party.

     

    [signature
page follows]

     

    
      
        
        

      

      
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    IN
WITNESS WHEREOF, the Parties hereto have executed and delivered this Agreement
in Omaha, Nebraska effective as of the day and year first above
written.

     

     

    
      	 	Wayzata,
      LLC	 
	 	 	 	 
	
               

            	
              By:
      

            	/s/
      [illegible signature]	 
	 	 	Name:	 
	 	 	Title:	 
	 	 	 	 

    

     

     

    
      
        	 	GABRIEL
      TECHNOLOGIES CORPORATION	 
	 	 	 	 
	
                 

              	
                By:
      

              	/s/
      Ronald Gillum	 
	 	 	Name:
      RONALD GILLUM	 
	 	 	Title:
      President	 
	 	 	 	 

      

    

     

    
      
        
        

      

      
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EXHIBIT
A

     

    FORM
OF STOCK EQUIVALENT UNIT PARTICIPATION AGREEMENT

     

    
      
        
        

      

      
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    GABRIEL
TECHNOLOGIES CORPORATION

    STOCK
EQUIVALENT UNIT

    PARTICIPATION
AGREEMENT

    

    STOCK EQUIVALENT UNIT PARTICIPATION
AGREEMENT (this “Agreement”) entered
into this 5th day of May, 2008 (the “Effective Date”),
between GABRIEL TECHNOLOGIES
CORPORATION, a Delaware corporation (the “Corporation”),
and
Wayzata, LLC, a South Dakota limited liability company (the “Holder”).

     

    WHEREAS, the Holder has loaned
an original principal amount of $315,000 to the Corporation, evidenced by or
resulting in a note payable or other obligation of the Corporation to Holder
(the “Obligation”), and has
agreed to exchange the Obligation for 477,500 Units (as defined below), as well
as other consideration, under that certain Obligation Exchange Agreement and
Release between the Corporation and the Holder, dated as of May 5, 2008 (the
“Obligation Exchange
Agreement”); and

     

    WHEREAS, the Corporation and
the Holder desire to memorialize and set out their respective rights and
obligations with respect to the Units.

     

    NOW, THEREFORE, in
consideration of the mutual premises and undertakings set forth herein and other
good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:

     

    1.    Definitions.  The
following words have the following meanings for purposes of this
Agreement.

     

    (a)    “Change of Control”
means the earliest date upon which one of the following events
occurs:

     

    (i)    Acquisition
by any individual, entity, or group (within the meaning of Section 13(d)(3) or
14(d)(2)  of the Securities Exchange Act of 1934, as amended (the
“Exchange Act”)
(a “Person”) of
beneficial ownership (within the meaning of Rule 13d-3 promulgated under the
Exchange Act) of 35% or more of either (A) the Shares (as defined below) or (B)
the combined voting power of the then-outstanding voting securities of the
Corporation entitled to vote generally in the election of directors of the
Corporation; provided, however, that for purposes of this Subsection (i), the
following acquisitions shall not constitute a Change of Control: (A) any
acquisition directly from the Corporation, (B) any acquisition by the
Corporation, (C) any acquisition by any employee  benefit plan (or
related trust) sponsored or maintained by the Corporation or any affiliated
company, or (D) any acquisition by any corporation pursuant to a transaction
that complies with clauses (A), (B), or (C) of Subsection (ii)
below);

     

    (ii)    Consummation
of a reorganization, merger, consolidation or sale or other disposition of all
or a significant part of the assets (other than in the ordinary course of
business) of the Corporation or of any of the Corporation’s wholly or partly
owned subsidiary companies, including without limitation Trace Technologies,
LLC, a Nebraska limited liability company (a “Business
Combination”), in each case, unless, following
such Business Combination, (A) all or substantially all of the individuals and
entities that were the beneficial holders of the Shares (as defined below)
immediately prior to such Business Combination beneficially own, directly or
indirectly, more than 60% of the then-outstanding shares of common stock and the
combined voting power of the then-outstanding voting securities entitled to vote
generally in the election of directors, as the case may be, of the corporation
resulting from such Business Combination (including, without limitation, a
corporation that, as a result of such Business

     

    
      
        
        

      

      
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    Combination,
owns the Corporation or all or substantially all of the Corporation‘s assets
either directly or through one or more subsidiaries) in substantially the same
proportions as their ownership of the Shares immediately prior to such Business
Combination, (B) no Person (excluding any corporation resulting from such
Business Combination or any employee benefit plan (or related trust) of the
Corporation or such corporation resulting from such Business Combination)
beneficially owns, directly or indirectly, 35% or more of, respectively, the
then-outstanding shares of common stock of the corporation resulting from such
Business Combination or the combined voting power of the then-outstanding voting
securities of such corporation, except to the extent that such ownership existed
prior to the Business Combination, and (C) at least a majority of the members of
the board of directors of the corporation resulting from such Business
Combination were members of the Corporation’s Board at the time of the execution
of the initial agreement or of the action of the Board providing for such
Business Combination; or

     

    (iii)    Approval by
the stockholders of the Corporation of a complete liquidation or dissolution of
the Corporation.

     

    (b)    “Dividend Distribution
Date” means the date on which the Corporation pays a cash dividend to the
holder of a Share.

     

    (c)    “Settlement Date”
means the date upon which the Stockholders of the Corporation receive proceeds
resulting from a Change of Control.

     

    (d)    “Share” means one
share and “Shares” means more
than one share of the Corporation’s issued and outstanding common stock, $0.001
par value, as the same is constituted from time to time.

     

    (e)    “Stockholder” means a
holder of Shares.

     

    (f)    “Unit” means a
contractual right of the Holder to receive a certain amount or value of property
from the Corporation equal to a certain amount or value of property received by
a Stockholder with respect to a Share, in accordance with the terms and
conditions of this Agreement.

     

    2.    Acknowledgement of Receipt
of Units and Cancellation of Obligation.

     

    (a)    The Holder
hereby acknowledges receipt of 477,500 Units from the Corporation under the
Obligation Exchange Agreement and agrees that such Units shall be subject to the
terms and conditions of this Agreement.  Holder further acknowledges
and agrees that such Units were received in exchange for the cancellation of the
Corporation’s Obligation, as described in the Obligation Exchange
Agreement.

     

    (b)    The
Corporation hereby acknowledges the issuance of 477,500 Units to the Holder under the Obligation
Exchange Agreement and agrees that such Units shall be subject to the terms and
conditions of this Agreement.  The Corporation further
acknowledges and agrees that such Units were issued in exchange for the
cancellation of the Corporation’s Obligation, as described in the Obligation
Exchange Agreement.

     

    
      
        
        

      

      
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    3.    Rights of
Holders of Units.  In accordance with the terms of this
Agreement, on the Settlement Date and each Dividend Distribution Date, if any,
the Holder of a Unit, with respect to each Unit held, shall be entitled to
receive an amount equal to the value of the amount paid or distributed to each
Stockholder with respect to each Share, in the form of cash or, at the election
of the Corporation, other property with a value equal to the property otherwise
distributable or payable under the terms of this Agreement.  Any such
amount or distribution to which a Holder becomes entitled shall be paid or made
by the Corporation to such Holder within five (5) Business Days (as defined
below) of such Settlement Date or Dividend Distribution Date.  By way
of illustration of the amounts or distributions to which a Holder may become
entitled, if on the Settlement Date, a Stockholder of the Corporation receives
$1.00 for each Share held by such Stockholder, then Holder will receive a cash
payment equal to $1.00 times the number of Units held by
Holder.  Similarly, if on the Settlement Date, each Stockholder of the
Corporation receives 5 shares of common stock of the acquiring company, with a
value of $2.00, for each Share held by such Stockholder, then Holder will
receive, at the Corporation’s election, either (a) a cash payment equal to $2.00
times the number of Units held by Holder, or (b) 5 shares of common stock of the
acquiring company for each Unit held by Holder.  Likewise, if on the
Dividend Distribution Date, each Stockholder of the Corporation receives a
Dividend Distribution Payment of $0.25 per Share in cash, then Holder will
receive a cash payment equal to $0.25 times the number of Units held by the
Holder.  The Corporation shall have the right to deduct, from any
payment or distribution hereunder, any taxes required by law to be withheld from
the Holder with respect to such payment or distribution and, in furtherance
thereof, Holder shall provide any documentation or completed form as may be
requested by Corporation related to or in connection with the determination of
any such withholding.  For the avoidance of doubt, amounts will only
be payable or distributable under this Agreement upon the occurrence of an event
specifically described herein and, further, no amount shall be payable or
distributable to a Holder upon the mere change in value of a Share in the
absence of such occurrence.

     

    4.    No Rights
as a Stockholder.  The Holder, in
its capacity as a Holder of Units, shall have no rights as a Stockholder of the
Corporation.  No Shares or other equity interest in the Corporation
shall be issued pursuant to this Agreement.

     

    5.    Adjustments to Units; No
Limitation on Corporation Action.

     

    (a)    In the event
of a change in the number of Shares by reason of the Corporation implementing
any stock dividend or split, recapitalization, merger, consolidation, spin-off,
reorganization, combination or exchange of shares or other similar corporate
change, so long as such change does not result in a Change of Control, the
Corporation shall adjust the number of Units issued to Holder in the Holder’s
Account (as defined in Section 7) as is necessary and appropriate and, further,
any such adjustment made shall be conclusive and binding on the parties
hereto.

     

    (b)    Notwithstanding the
foregoing, the issuance by the Corporation of shares of its capital stock of any
class, or securities convertible into shares of capital stock of any class,
either in connection with a direct sale or upon the exercise of rights or
warrants to subscribe therefor, or upon conversion of shares or obligations of
the Corporation convertible into such shares or other securities, shall not
affect, and no adjustment by reason thereof shall be made with respect to, the
number of Units covered by this Agreement.

     

    (c)    For the
avoidance of doubt and without limiting the generality of the foregoing, the
existence of the Units shall not affect in any manner the right or power of the
Corporation to make, authorize or consummate (i) any or all adjustments,
recapitalizations, reorganizations or other changes in the Corporation’s capital
structure or its business; (ii) any merger or consolidation of the Corporation;
(iii) the dissolution or liquidation of the Corporation; (iv) any sale, transfer
or assignment of all or any part of the assets or business of the Corporation;
or (v) any other corporate act or proceeding, whether of a similar character or
otherwise.

     

    
      
        
        

      

      
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    6.    Representations
and Warranties of Holders of Units.  As of the
Effective Date and the date of execution of the Obligation Exchange Agreement,
the Holder represents and warrants that:

     

    (a)    The Holder
has had access to all information regarding the Corporation and its present and
prospective business, assets, liabilities and financial condition that the
Holder reasonably considers important in connection with the Units, this
Agreement, and the Obligation Exchange Agreement, and the Holder has had ample
opportunity to ask questions of the Corporation’s representatives (and any such
questions have been answered to Holder’s satisfaction) concerning such
matters.

     

    (b)    The Holder is
fully aware of: (i) the highly speculative nature of the future potential
financial returns on or from the Units, (ii) the financial risks and hazards
involved in the future potential financial returns on or from the Units, and
(iii) the tax consequences of executing and participating in this Agreement and
the Obligation Exchange Agreement.

     

    (c)    The
Corporation has made no representations or warranties to the Holder with respect
to the tax consequences (including, without limitation, the federal, state and
local income tax consequences) related to or that could arise from executing and
participating in this Agreement and the Obligation Exchange Agreement, and the
Holder is in no manner relying on the Corporation or its representatives for an
assessment of such tax consequences.

     

    (d)    The Holder
has been advised that Holder should consult with his own attorney, accountant,
and/or tax advisor regarding the decision to enter into and participate in this
Agreement and the Obligation Exchange Agreement and the tax, financial, and/or
other consequences thereof, and, further, the Corporation has no responsibility
to take or refrain from taking any action or actions in order to achieve a
certain tax or financial result for the Holder.

     

    7.    Stock
Equivalent Unit Account.  Each Unit shall
be evidenced by an entry on the books of the Corporation (an “Account”).  Each
Account shall be the record of Units issued to Holder pursuant to the Obligation
Exchange Agreement and this Agreement and shall be solely for accounting
purposes.  Amounts payable or distributable hereunder shall be paid or
distributed exclusively from the general assets of the Corporation, and no
Holder entitled to payment or distribution hereunder shall have any claim,
right, security interest, or other interest in any fund, trust, account,
insurance contract, or asset of the Corporation from which a payment or
distribution may be made.  The rights of a Holder of a Unit hereunder
shall be solely those of an unsecured creditor of the
Corporation.  The Corporation’s liability for payments or
distributions hereunder, if any, shall be evidenced only by this
Agreement.

     

    8.    Restriction
on Transfer.  The Units may not
be assigned or transferred except by will, by the laws of descent and
distribution, or pursuant to a qualified domestic relations order as defined in
the Internal Revenue Code of 1986, as amended.  If the Holder dies,
the Units shall transfer to a person who acquired the right to the Units by
bequest or inheritance. The Units shall not be subject to execution, attachment
or similar process.  Any attempted assignment or transfer of the Units
contrary to the provisions hereof, and the levy of any execution, attachment or
similar process upon the Units, shall be null and void and without
effect.

     

    9.    Notices.  All notices or
other communications which are required or permitted hereunder shall be in
writing and sufficient if (i) personally delivered, (ii) sent by
nationally-recognized overnight courier or (iii) sent by registered or certified
mail, postage prepaid, return receipt requested, addressed as
follows:

     

    
      
        
        

      

      
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    if to the
Holder, to the address set forth on the signature page hereto; and

    if to the
Corporation, to:

     

    Gabriel
Technologies Corporation

    Attention:
Ronald Gillum

    4538 S.
140th
Street

    Omaha,
NE  68137

    

    or to
such other address as the party to whom notice is to be given may have furnished
to each other party in writing in accordance herewith.  Any such
communication shall be deemed to have been given (i) when delivered, if
personally delivered, (ii) on the first Business Day (as hereinafter defined)
after dispatch, if sent by nationally-recognized overnight courier and (iii) on
the third Business Day following the date on which the piece of mail containing
such communication is posted, if sent by mail.  As used herein, “Business Day” means a
day that is not a Saturday, Sunday or a day on which banking institutions in the
city to which the notice or communication is to be sent are not required to be
open.

     

    10.    No
Waiver.  No waiver of any
breach or condition of this Agreement shall be deemed to be a waiver of any
other or subsequent breach or condition, whether of like or different
nature.

     

    11.    Holder
Undertaking / Indemnification.  The Holder hereby
agrees to take whatever additional actions and execute whatever additional
documents the Corporation or its counsel may in their reasonable judgment deem
necessary or advisable in order to carry out or effect one or more of the
obligations or restrictions imposed on the Holder pursuant to the express
provisions of this Agreement.  Holder agrees to hold the Corporation,
its subsidiary companies, officers, directors, employees and agents and their
respective heirs, representatives, successors, and assigns harmless and to
indemnify them against all liabilities, costs, and expenses (including
reasonable attorneys’ fees) incurred by them as a result of any
misrepresentation made by Holder herein or any other breach or violation by
Holder of this Agreement or the Obligation Exchange Agreement.

     

    12.    Governing
Law.  This Agreement
shall be governed by and construed, enforced and interpreted in accordance with
the laws of the State of Nebraska (without regard to principles of conflicts of
laws).  The Parties consent to the sole and exclusive jurisdiction of
the state courts and U.S. federal courts having jurisdiction in Douglas County,
Nebraska for any dispute arising out of this Agreement.

     

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

     

    14.    Entire
Agreement.  This Agreement,
with the Obligation Exchange Agreement, constitutes the entire agreement between
the parties with respect to the subject matter hereof, and supersedes all prior
written or oral negotiations, commitments, representations and agreements with
respect thereto.

     

    [remainder
of page intentionally left blank -- signature page follows]

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    IN
WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date
set forth above.

     

     

    
      
        	 	GABRIEL TECHNOLOGIES
      CORPORATION	 
	 	 	 	 
	
                 

              	
                By:
      

              	/s/ Ronald
      Gillum	 
	 	 	Name: 
      Ronald Gillum	 
	 	 	Title: 
      President	 
	 	 	 	 

      

    

     

     

    
      	 	HOLDER:	 
	 	 	 	 
	
               

            	
               

            	 /s/ Jerry M.
      Suess	 
	 	 	Name:
      Jerry M. Suess	 
	 	 	Address: 
      30  Widewater Rd.	 
	 	 	HHI,
      S.C.  29926	 

    

     

    
      
        
        

      

      
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EXHIBIT
B

     

    FORM
OF WARRANT

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    

    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

    FOR
THE PURCHASE OF STOCK EQUIVALENT UNITS OF

    GABRIEL
TECHNOLOGIES CORPORATION

    INCORPORATED
UNDER THE LAWS OF

    THE
STATE OF DELAWARE

     

    1.1    Basic
Terms.   This certifies that, in connection with that
certain Obligation Exchange Agreement and Release dated May 5, 2008 by and
between Gabriel Technologies Corporation, a Delaware corporation (the “Company”)
and Wayzata, LLC, 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 477,500 stock equivalent units (“Units”), of 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 Unit
purchased.  The term “Warrant Units,” as used herein, refers to the
Units purchasable hereunder.

    

    
      	
              Registered
      Owner:

            	
              Wayzata,
      LLC

            
	 	 
	Purchase
      Price:	Forty
      Cents ($0.40) a Unit

    

     

    
      	
              Expiration
      Date:

            	
              3:00pm
      Central Time December 30, 2009, unless terminated sooner under this
      Warrant.

            

    

     

    1.2    Company’s Covenants as to
Units.   Upon exercise of this Warrant, both the Company
and the Registered Owner purchasing Units pursuant to the terms of this Warrant
shall enter into a Stock Equivalent Unit Participation Agreement in the form of
Attachment 1
hereto (the “Participation Agreement”). The Units shall not be certificated,
will be governed by the Participation Agreement, and will be represented solely
by an account to be maintained by the Company as set forth in the Participation
Agreement.

     

    1.3    Method of Exercise; Fractional
Units.   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 Units are to be issued upon the exercise
of this Warrant.  In lieu of issuing a fraction of a Unit remaining
after exercise of this Warrant as to all full Units covered hereby, the Company
shall either (a) pay therefor cash equal to the same fraction of the then
current Purchase Price per Unit 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 full Unit on surrender of
scrip aggregating a full Unit.  Scrip may become void after a
reasonable period (but not less than six months after the expiration date of
this Warrant) determined by the Board of Directors and specified in the
scrip.  In case of the exercise of this Warrant for less than all the
Units 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 Units
purchasable.

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

     

    1.4    Adjustment of Units Available for
Purchase.   The number of Units available for purchase
hereunder and the Purchase Price per Unit 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 or Unit holder 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 Units 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 Units
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 1.13.

     

    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    Adjustment to Units. In the
event of a change in the number of outstanding shares of the Company’s common
stock, $0.001 par value (“Common Stock”) by reason of implementation of any
stock dividend or split, recapitalization or other similar corporate change, the
Company shall proportionately adjust the Purchase Price and number of Units
available for purchase under this Warrant as is necessary and appropriate (the
price to the nearest cent) and, further, any such adjustment made shall be
conclusive and binding on the Registered Owner. Irrespective of any adjustment
or change in the Purchase Price or the number of Units purchasable under this or
any other Warrant of like tenor, the Warrants theretofore and thereafter issued
may continue to express the Purchase Price per Unit and the number of Units
available for purchase as the Purchase Price per Unit and the number of Units
available for purchase were expressed in the Warrants when initially
issued.

     

    1.10   Notice of
Adjustment.   On the happening of an event requiring an
adjustment of the Purchase Price or the Units 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.

     

    1.11   Notice and Effect of Certain
Transactions.   In case a voluntary or involuntary
dissolution, liquidation, or winding up of the Company, or a merger,
consolidation, ale of all or substantially all of the assets of the Company or
other similar transaction 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 Units 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 Units 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.

     

    
      
        
        

      

      
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    1.12    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.

     

    1.13    Restriction on
Transfer.  The Warrant may not be assigned or transferred
except by will, by the laws of descent and distribution, or pursuant to a
qualified domestic relations order as defined in the Internal Revenue Code of
1986, as amended.  If the Registered Owner dies, the Warrant shall
transfer to a person who acquired the right to the Warrant by bequest or
inheritance. The Warrant shall not be subject to execution, attachment or
similar process.  Any attempted assignment or transfer of the Warrant
contrary to the provisions hereof, and the levy of any execution, attachment or
similar process upon the Warrant, shall be null and void and without
effect.

     

    1.13    Cashless
Exercise.  Notwithstanding anything to the contrary herein, the
Warrants shall be eligible for “cashless exercise.” 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 Units determined by
dividing (i) (A) the aggregate Market Value of an equal number of shares of the
Company’s Common Stock as the number of Units issuable upon exercise of this
Warrant, minus (B) the aggregate Purchase Price of such Warrant Units, by (ii)
the Market Value of one share of the Company’s Common Stock.  “Market
Value” as of any date, means (x) the average of the last reported sale prices on
the principal trading market for the Company’s 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 Warrant was being exercised for 250,000 on such date, the
Registered Owner could elect to exercise this Warrant for 216,666 Units on a
cashless basis [((250,000 x $3.00) – (250,000 x $.40)), divided by $3.00 =
216,666 Units].  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.

     

    1.14    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.

     

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

     

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

     

    
      
        
        

      

      
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    Dated
this 5th day of May 2008.

    

    
      
        	 	GABRIEL
      TECHNOLOGIES CORPORATION	 
	 	 	 	 
	
                 

              	
                By:
      

              	/s/ Ronald
      Gillum	 
	 	 	Name:
      Ronald Gillum	 
	 	 	Title:
      President	 
	 	 	 	 

      

    
    

     

    
      	
              AGREED
      AND ACCEPTED:

               

              Wayzata, LLC

            	 	 
	 	 	 	 
	By:	/s/ [illegible
      signature]	 	 
	Name:	 	 	 
	Title:	 	 	 

    

     

    
      
        
        

      

      
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    ATTACHMENT
1

    

    FORM OF STOCK EQUIVALENT UNIT
PARTICIPATION AGREEMENT

    GABRIEL
TECHNOLOGIES CORPORATION

    STOCK
EQUIVALENT UNIT

    PARTICIPATION
AGREEMENT

    

    STOCK EQUIVALENT UNIT PARTICIPATION
AGREEMENT (this “Agreement”) entered
into this ___ day of _______________, 2008 (the “Effective Date”),
between GABRIEL TECHNOLOGIES
CORPORATION, a Delaware corporation (the “Corporation”), and
________________________
(the “Holder”).

     

    WHEREAS, the Holder has
submitted an Exercise Form and tendered the applicable Purchase Price to
purchase _______________ stock equivalent Units (defined below) as provided in
that certain Warrant Certificate issued to Holder dated _________________, 2008
(the “Warrant”);

     

    NOW, THEREFORE, in
consideration of the mutual premises and undertakings set forth herein and other
good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:

     

    1.    Definitions.  The
following words have the following meanings for purposes of this
Agreement.

     

    (g)    “Change of Control”
means the earliest date upon which one of the following events
occurs:

     

    (i)    Acquisition
by any individual, entity, or group (within the meaning of Section 13(d)(3) or
14(d)(2)  of the Securities Exchange Act of 1934, as amended (the
“Exchange Act”)
(a “Person”) of
beneficial ownership (within the meaning of Rule 13d-3 promulgated under the
Exchange Act) of 35% or more of either (A) the Shares (as defined below) or (B)
the combined voting power of the then-outstanding voting securities of the
Corporation entitled to vote generally in the election of directors of the
Corporation; provided, however, that for purposes of this Subsection (i), the
following acquisitions shall not constitute a Change of Control: (A) any
acquisition directly from the Corporation, (B) any acquisition by the
Corporation, (C) any acquisition by any employee  benefit plan (or
related trust) sponsored or maintained by the Corporation or any affiliated
company, or (D) any acquisition by any corporation pursuant to a transaction
that complies with clauses (A), (B), or (C) of Subsection (ii)
below);

     

    (ii)    Consummation
of a reorganization, merger, consolidation or sale or other disposition of all
or a significant part of the assets (other than in the ordinary course of
business) of the Corporation or of any of the Corporation’s wholly or partly
owned subsidiary companies, including without limitation Trace Technologies,
LLC, a Nebraska limited liability company (a “Business
Combination”), in each case, unless, following
such Business Combination, (A) all or substantially all of the individuals and
entities that were the beneficial holders of the Shares (as defined below)
immediately prior to such Business Combination beneficially own, directly or
indirectly, more than 60% of the then-outstanding shares of common stock and the
combined voting power of the then-outstanding voting securities entitled to vote
generally in the election of directors, as the case may be, of the corporation
resulting from such Business Combination (including, without limitation, a
corporation that, as a result of such Business Combination, owns the Corporation
or all or substantially all of the Corporation‘s assets either directly or
through one or more subsidiaries) in substantially the same proportions as their
ownership of the Shares immediately prior to such Business Combination, (B) no
Person (excluding any corporation resulting from such Business Combination or
any employee benefit plan (or related trust) of the Corporation or such
corporation resulting from such Business Combination) beneficially owns,
directly or indirectly, 35% or more of, respectively, the then-outstanding
shares of common stock of the corporation resulting from such Business
Combination or the combined voting power of the then-outstanding voting
securities of such corporation, except to the extent that such ownership existed
prior to the Business Combination, and (C) at least a majority of the members of
the board of directors of the corporation resulting from such Business
Combination were members of the Corporation’s Board at the time of the execution
of the initial agreement or of the action of the Board providing for such
Business Combination; or

     

    
      
        
        

      

      
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    (iii)    Approval by
the stockholders of the Corporation of a complete liquidation or dissolution of
the Corporation.

    

    (h)    “Dividend Distribution
Date” means the date on which the Corporation pays a cash dividend to the
holder of a Share.

     

    (i)    “Settlement Date”
means the date upon which the Stockholders of the Corporation receive proceeds
resulting from a Change of Control.

     

    (j)    “Share” means one
share and “Shares” means more
than one share of the Corporation’s issued and outstanding common stock, $0.001
par value, as the same is constituted from time to time.

     

    (k)    “Stockholder” means a
holder of Shares.

     

    (l)    “Unit” means a
contractual right of the Holder to receive a certain amount or value of property
from the Corporation equal to a certain amount or value of property received by
a Stockholder with respect to a Share, in accordance with the terms and
conditions of this Agreement.

     

    2.    Acknowledgement of Receipt
of Units and Cancellation of Obligation.

     

    (a)    The Holder
hereby acknowledges receipt of ________ Units from the Corporation upon exercise
of the Warrant and agrees that such Units shall be subject to the terms and
conditions of this Agreement.  Holder further acknowledges and agrees
that such Units were received in exchange for the Purchase Price, as described
in the Warrant.

     

    (b)    The
Corporation hereby acknowledges the issuance of ________Units to the Holder upon exercise of the
Warrant and agrees that such Units shall be subject to the terms and conditions
of this Agreement.  The Corporation further
acknowledges and agrees that such Units were issued in exchange for the Purchase
Price, as described in the Warrant.

     

    3.    Rights of
Holders of Units.  In accordance with the terms of this
Agreement, on the Settlement Date and each Dividend Distribution Date, if any,
the Holder of a Unit, with respect to each Unit held, shall be entitled to
receive an amount equal to the value of the amount paid or distributed to each
Stockholder with respect to each Share, in the form of cash or, at the election
of the Corporation, other property with a value equal to the property otherwise
distributable or payable under the terms of this Agreement.  Any such
amount or distribution to which a Holder becomes entitled shall be paid or made
by the Corporation to such Holder within five (5) Business Days (as defined
below) of such Settlement Date or Dividend Distribution Date.  By way
of illustration of the amounts or distributions to which a Holder may become
entitled, if on the Settlement Date, a Stockholder of the Corporation receives
$1.00 for each Share held by such Stockholder, then Holder will receive a cash
payment equal to $1.00 times the number of Units held by
Holder.  Similarly, if on the Settlement Date, each Stockholder of the
Corporation receives 5 shares of common stock of the acquiring company, with a
value of $2.00, for each Share held by such Stockholder, then Holder will
receive, at the Corporation’s election, either (a) a cash payment equal to $2.00
times the number of Units held by Holder, or (b) 5 shares of common stock of the
acquiring company for each Unit held by Holder.  Likewise, if on the
Dividend Distribution Date, each Stockholder of the Corporation receives a
Dividend Distribution Payment of $0.25 per Share in cash, then Holder will
receive a cash payment equal to $0.25 times the number of Units held by the
Holder.  The Corporation shall have the right to deduct, from any
payment or distribution hereunder, any taxes required by law to be withheld from
the Holder with respect to such payment or distribution and, in furtherance
thereof, Holder shall provide any documentation or completed form as may be
requested by Corporation related to or in connection with the determination of
any such withholding.  For the avoidance of doubt, amounts will only
be payable or distributable under this Agreement upon the occurrence of an event
specifically described herein and, further, no amount shall be payable or
distributable to a Holder upon the mere change in value of a Share in the
absence of such occurrence.

     

    
      
        
        

      

      
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    4.           No Rights
as a Stockholder.  The Holder, in
its capacity as a Holder of Units, shall have no rights as a Stockholder of the
Corporation.  No Shares or other equity interest in the Corporation
shall be issued pursuant to this Agreement.

     

    5.    Adjustments to Units; No
Limitation on Corporation Action.

     

    (a)    In the event
of a change in the number of Shares by reason of the Corporation implementing
any stock dividend or split, recapitalization, merger, consolidation, spin-off,
reorganization, combination or exchange of shares or other similar corporate
change, so long as such change does not result in a Change of Control, the
Corporation shall adjust the number of Units issued to Holder in the Holder’s
Account (as defined in Section 7) as is necessary and appropriate and, further,
any such adjustment made shall be conclusive and binding on the parties
hereto.

     

    (b)    Notwithstanding the
foregoing, the issuance by the Corporation of shares of its capital stock of any
class, or securities convertible into shares of capital stock of any class,
either in connection with a direct sale or upon the exercise of rights or
warrants to subscribe therefor, or upon conversion of shares or obligations of
the Corporation convertible into such shares or other securities, shall not
affect, and no adjustment by reason thereof shall be made with respect to, the
number of Units covered by this Agreement.

     

    (c)    For the
avoidance of doubt and without limiting the generality of the foregoing, the
existence of the Units shall not affect in any manner the right or power of the
Corporation to make, authorize or consummate (i) any or all adjustments,
recapitalizations, reorganizations or other changes in the Corporation’s capital
structure or its business; (ii) any merger or consolidation of the Corporation;
(iii) the dissolution or liquidation of the Corporation; (iv) any sale, transfer
or assignment of all or any part of the assets or business of the Corporation;
or (v) any other corporate act or proceeding, whether of a similar character or
otherwise.

     

    6.    Representations
and Warranties of Holders of Units.  As of the
Effective Date and the date of exercise of the Warrant, the Holder represents
and warrants that:

     

    (a)    The Holder
has had access to all information regarding the Corporation and its present and
prospective business, assets, liabilities and financial condition that the
Holder reasonably considers important in connection with the Units, this
Agreement, and the Warrant, and the Holder has had ample opportunity to ask
questions of the Corporation’s representatives (and any such questions have been
answered to Holder’s satisfaction) concerning such matters.

     

    
      
        
        

      

      
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    (b)    The Holder is
fully aware of: (i) the highly speculative nature of the future potential
financial returns on or from the Units, (ii) the financial risks and hazards
involved in the future potential financial returns on or from the Units, and
(iii) the tax consequences of executing and participating in this Agreement and
exercising the Warrant.

     

    (c)    The
Corporation has made no representations or warranties to the Holder with respect
to the tax consequences (including, without limitation, the federal, state and
local income tax consequences) related to or that could arise from executing and
participating in this Agreement and exercise of the Warrant, and the Holder is
in no manner relying on the Corporation or its representatives for an assessment
of such tax consequences.

     

    (d)    The Holder
has been advised that Holder should consult with his own attorney, accountant,
and/or tax advisor regarding the decision to enter into and participate in this
Agreement and exercise of the Warrant and the tax, financial, and/or other
consequences thereof, and, further, the Corporation has no responsibility to
take or refrain from taking any action or actions in order to achieve a certain
tax or financial result for the Holder.

     

    7.    Stock
Equivalent Unit Account.  Each Unit shall
be evidenced by an entry on the books of the Corporation (an “Account”).  Each
Account shall be the record of Units issued to Holder pursuant to the Warrant
and this Agreement and shall be solely for accounting
purposes.  Amounts payable or distributable hereunder shall be paid or
distributed exclusively from the general assets of the Corporation, and no
Holder entitled to payment or distribution hereunder shall have any claim,
right, security interest, or other interest in any fund, trust, account,
insurance contract, or asset of the Corporation from which a payment or
distribution may be made.  The rights of a Holder of a Unit hereunder
shall be solely those of an unsecured creditor of the
Corporation.  The Corporation’s liability for payments or
distributions hereunder, if any, shall be evidenced only by this
Agreement.

     

    8.    Restriction
on Transfer.  The Units may not
be assigned or transferred except by will, by the laws of descent and
distribution, or pursuant to a qualified domestic relations order as defined in
the Internal Revenue Code of 1986, as amended.  If the Holder dies,
the Units shall transfer to a person who acquired the right to the Units by
bequest or inheritance. The Units shall not be subject to execution, attachment
or similar process.  Any attempted assignment or transfer of the Units
contrary to the provisions hereof, and the levy of any execution, attachment or
similar process upon the Units, shall be null and void and without
effect.

     

    9.    Notices.  All notices or
other communications which are required or permitted hereunder shall be in
writing and sufficient if (i) personally delivered, (ii) sent by
nationally-recognized overnight courier or (iii) sent by registered or certified
mail, postage prepaid, return receipt requested, addressed as
follows:

     

    if to the
Holder, to the address set forth on the signature page hereto; and

    if to the
Corporation, to:

     

    Gabriel
Technologies Corporation

    Attention:
Ronald Gillum

    4538 S.
140th
Street

    Omaha,
NE  68137

     

    
      
        
        

      

      
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    or to
such other address as the party to whom notice is to be given may have furnished
to each other party in writing in accordance herewith.  Any such
communication shall be deemed to have been given (i) when delivered, if
personally delivered, (ii) on the first Business Day (as hereinafter defined)
after dispatch, if sent by nationally-recognized overnight courier and (iii) on
the third Business Day following the date on which the piece of mail containing
such communication is posted, if sent by mail.  As used herein, “Business Day” means a
day that is not a Saturday, Sunday or a day on which banking institutions in the
city to which the notice or communication is to be sent are not required to be
open.

     

    10.    No
Waiver.  No waiver of any
breach or condition of this Agreement shall be deemed to be a waiver of any
other or subsequent breach or condition, whether of like or different
nature.

     

    11.    Holder
Undertaking / Indemnification.  The Holder hereby
agrees to take whatever additional actions and execute whatever additional
documents the Corporation or its counsel may in their reasonable judgment deem
necessary or advisable in order to carry out or effect one or more of the
obligations or restrictions imposed on the Holder pursuant to the express
provisions of this Agreement.  Holder agrees to hold the Corporation,
its subsidiary companies, officers, directors, employees and agents and their
respective heirs, representatives, successors, and assigns harmless and to
indemnify them against all liabilities, costs, and expenses (including
reasonable attorneys’ fees) incurred by them as a result of any
misrepresentation made by Holder herein or any other breach or violation by
Holder of this Agreement or theWarrant.

     

    12.    Governing
Law.  This Agreement
shall be governed by and construed, enforced and interpreted in accordance with
the laws of the State of Nebraska (without regard to principles of conflicts of
laws).  The Parties consent to the sole and exclusive jurisdiction of
the state courts and U.S. federal courts having jurisdiction in Douglas County,
Nebraska for any dispute arising out of this Agreement.

     

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

     

    14.    Entire
Agreement.  This Agreement,
with the Warrant, constitutes the entire agreement between the parties with
respect to the subject matter hereof, and supersedes all prior written or oral
negotiations, commitments, representations and agreements with respect
thereto.

     

    [remainder
of page intentionally left blank -- signature page follows]

     

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

     

    IN
WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date
set forth above.

     

    
       

      
        
          	 	GABRIEL TECHNOLOGIES
      CORPORATION	 
	 	 	 	 
	
                   

                	
                  By:
      

                	/s/ 	 
	 	 	Name:	 
	 	 	Title:	 
	 	 	 	 

        

      

       

       

      
        	 	HOLDER:	 
	 	 	 	 
	
                 

              	
                 

              	 	 
	 	 	Name:	 
	 	 	Address:	 
	 	 	 	 

      

       

       

      23

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00144-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00144-of-00352.parquet"}]]