Document:

Unassociated Document

    EXHIBIT
      10.11

     

    GABRIEL
      TECHNOLOGIES CORPORATION

     

    PROMISSORY
      NOTE

     

    
      	$75,000.00	
              April
                24, 2007

            

    

    

    FOR
      VALUE
      RECEIVED, the undersigned, Gabriel Technologies Corporation, a Delaware
      corporation ("Company"),
      promises to pay to the order of Brad Mindlin ("Lender"), the principal sum
      of
Seventy Five
      Thousand Dollars ($75,000) (the "Principal"),
      together with interest on the unpaid
      principal balance
      from
      time
      to time outstanding
      at a
      rate per
      annum
      equal to seven percent
      (7.0%) (the "Interest").
      Further, Lender will receive a
      warrant
      to purchase
      One Hundred
      Twenty Thousand
      (120,000) shares of
      the
      Company's common stock at an exercise price of Fifty Cents ($0.50) per share,
      pursuant to the terms and conditions of a Warrant Certificate to be delivered
      by
      the Company. All payments on this Note shall be due and payable in lawful money
      of the United States of America at such place as Lender may from time to time
      designate at the time provided in Section 1 below.

    

    1. Payments.
      The
      Principal and Interest will be due and payable upon the earlier of (i) receipt
      of proceeds from the $750,000 bridge financing contemplated by the term sheet
      between the Company and
      Stonebridge
      Holdings, LLC or its affiliates, (ii) receipt of future financings by the
      Company of either debt or equity in excess of $500,000, and (iii) 30 days from
      the date hereof. In addition, Lender will receive .45% of an IP Event, which
      will be due and payable within 10 business days after the 1P Event. For purposes
      of this Note, an "IP Event"
      is
      defined as the receipt by the Company or any of its subsidiaries of a minimum
      of
      $10,000,000 in gross proceeds (in cash or the fair market value of non-cash
      consideration) from a licensing, sale, transfer, settlement or other transaction
      with one or more third parties relating to intellectual property of the Company
      or its subsidiaries, or a merger, consolidation, share exchange or sale of
      all
      or substantially all of the stock or assets of the Company or any of its
      subsidiaries.

    

    2. Pledge
      and Security Agreement.
      Payment
      of this Note is secured as set forth in that certain Pledge and Security
      Agreement dated of even date herewith by and among the Company and Lender (the
      "Security
      Agreement").

    

    3. Prioriity.
      Payment
      of this Note shall take priority over the other debt payment obligations of
      the
      Company.

    

    4. Attorney's
      Fees.
      If the
      indebtedness represented by this Note or any part thereof is collected
      in bankruptcy,
      receivership or other judicial proceedings or if this Note is placed in the
      hands of
      attorneys for collection after default, the Company agrees to pay, in addition
      to the principal and interest payable hereunder, reasonable attorney's fees
      and
      costs incurred by Lender.

    

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

    

    6. Waivers.
      The
      Company hereby waives presentment, demand for performance, notice of
      non-performance, protest, notice of protest and notice of dishonor. No delay
      on
      the part of Lender in exercising any right hereunder shall operate as a waiver
      of such right or any other right. Any lawsuit or litigation
      arising under, out of, in connection with, or in relation to this Agreement,
      any
      amendment thereof,
      or the breach thereof, shall be brought in the courts of Omaha, Nebraska, which
      courts shall have exclusive jurisdiction over any such lawsuit or
      litigation.

    

    7. Assignment.
      This
      Note is not transferable by the Company, whether by sale, pledge or other
      disposition, without the prior written consent of Lender which consent may
      be
      withheld in Lender's

    
      
         

      

      
        -1-

        
          

        

      

      
         

      

    

    
       
sole
      discretion, except that the Company may transfer this Note without such consent
      in connection with a
      merger
      or
      other similar transaction involving the Company.

    

    8. Delaware
      Law.
      This
      Note shall be construed in accordance with the laws of the State of Delaware,
      without regard to the conflicts of laws provisions thereof.

    

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

    

      GABRIEL
        TECHNOLOGIES CORPORATION 

      

      

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

      Name: T.J.
        O’Brien                                              

      Its: Acting
        COO                                                   

       

       

      -2-Unassociated Document

    
      EXHIBIT
        10.12

      

       

      The
        securities represented by this certificate have not been registered under
        the
        Securities Act of 1933, as amended, and may not be sold, exchanged
        or transferred in any manner in the absence of such registration
or
        an opinion of counsel reasonably acceptable to the Company that no such
        registration is required.

      

      

      WARRANT
        CERTIFICATE

      GABRIEL
        TECHNOLOGIES CORPORATION

      INCORPORATED
        UNDER THE LAWS OF

      THE
        STATE OF DELAWARE

      

      

      1.1
        Basic "Terms. This
        certifies that, for value received, the registered owner set forth below,
        or its
        registered assigns ("Registered Owner") is entitled, subject to the terms
        and
        conditions of this Warrant (this "Warrant"), until the Expiration Date set
        forth
        below, to purchase 120,000 shares of the Common Stock, par value $0.001 (the
        "Common Stock"), of Gabriel Technologies Corporation, a Delaware corporation
        (the "Company"), from the Company at the Purchase
        Price shown below, on delivery of this Warrant to the Company with an exercise
        form, as
        provided by the Company (an "Exercise Form"), duly executed and payment of
        the
        Purchase
        Price
        (in cash or by certified or bank cashier's check payable to the order of
        the
        Company) for each Warrant Share purchased. The term "Warrant Shares," as
        used
        herein, refers to the shares of Common Stock purchasable hereunder.

      

      
        	
                Registered
                  Owner:

              	
                Brad
                  Mindlin

              
	 	 
	
                Purchase
                  Price:

              	
                Fifty
                  Cents ($0.50) a share

              
	 	 
	
                Expiration
                  Date:

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

              

      

      

      1.2
        Company's Covenants as to Common Stock. Warrant
        Shares deliverable on the
        exercise of this Warrant shall, at delivery, be fully paid and non-assessable,
        free from taxes, liens,
        and charges with respect to their purchase. The Company shall take any necessary
        steps
        to
        assure that the par value per share of the Common Stock is at all times equal
        to
        or less than the then current Purchase Price per share of the Common Stock
        issuable pursuant to this Warrant. The Company shall at all times reserve
        and
        hold available sufficient shares of Common Stock to satisfy all conversion
        and
        purchase rights of outstanding convertible securities, options, and
        warrants.

      

      1.3
        Method of Exercise; Fractional Shares. Subject
        to the provisions of this Warrant, this Warrant may be exercised, in whole
        or in
        part, at the option of the Registered Owner by (a) surrender of this Warrant
        to
        the Company together with a duly executed Exercise Form, and (b) payment
        of the
        Purchase Price. No fractional shares of Common Stock are to be issued upon
        the
        exercise of this Warrant. In lieu of issuing a fraction of a share remaining
        after exercise of this Warrant as to all full shares covered hereby, the
        Company
        shall either (a) pay therefor cash equal to the same fraction of the then
        current Purchase Price per share or, at its option, (b) issue scrip for the
        fraction, in registered or bearer form approved by the Board of Directors
        of the Company, which shall entitle the holder to receive a certificate for
        a
        full share of
        Common
        Stock on surrender of scrip aggregating a full share. Scrip may become void
        after a reasonable period (but not less than six months after the expiration
        date of this Warrant) determined by the Board of Directors and specified
        in the
        scrip. In case of the exercise of this

      
        
           

        

        
          -1-

          
            

          

        

        
           

        

      

      
         

         
Warrant
        for less than all the shares available for purchase, the Company shall cancel
        the Warrant and execute and deliver a new Warrant of like tenor and date
        for the
        balance of the shares purchasable.

      

      1.4
        Adjustment of Shares Available for Purchase. The
        number of shares available for purchase hereunder and the Purchase Price
        per
        share are subject to adjustment from time to time by the Company as specified
        in
        this Warrant.

      

      1.5
        Limited Rights of Owner. This
        Warrant does not entitle the Registered Owner to any voting rights or other
        rights as a stockholder of the Company, or to any other rights whatsoever
        except
        the rights herein expressed. No dividends are payable or will accrue on this
        Warrant or the Warrant Shares available for purchase hereunder until and
        except
        to the extent that this Warrant is exercised.

      

      1.6
        Exchange for Other Denominations. This
        Warrant is exchangeable, on its surrender by the Registered Owner to the
        Company, for new Warrants of like tenor and date representing in the aggregate
        the right to purchase the number of shares available for purchase hereunder
        in
        denominations designated by the Registered Owner at the time of
        surrender.

      

      1.7
        Transfer. Except
        as
        otherwise above provided, this Warrant is transferable only on the books
        of the
        Company by the Registered Owner or by its attorney, on surrender of this
        Warrant, properly endorsed, provided, however, that any transfer or assignment
        shall be subject to the conditions set forth in Section 1.14.

      

      1.8
        Recognition of Registered Owner. Prior
        to
        due presentment for registration of transfer of this Warrant, the Company
        may
        treat the Registered Owner as the person exclusively entitled to receive
        notices
        and otherwise to exercise rights hereunder.

      

      1.9
        Effect of Stock Split, Etc. If
        the
        Company, by stock dividend, split, reverse split, reclassification of shares,
        or
        otherwise, changes as a whole the outstanding Common Stock into a different
        number or class of shares, then:

      

      (a)  the
        number and class of shares so changed shall, for the purposes of this Warrant,
        replace the shares outstanding immediately prior to the change; and

      

      (b)  the
        Purchase Price and the number of shares available for purchase under this
        Warrant, immediately prior to the date upon which the change becomes effective,
        shall be proportionately adjusted (the price to the nearest cent). Irrespective
        of any adjustment or change in the Purchase Price or the number of shares
        purchasable under this or any other Warrant of like tenor, the Warrants
        theretofore and thereafter issued may continue to express the Purchase Price
        per
        share and the number of shares available for purchase as the Purchase Price
        per
        share and the number of shares available for purchase were expressed in the
        Warrants when initially issued.

      

      1.10
        Effect
        of Merger, Etc.
        If
        the Company consolidates with or merges into another corporation, the Registered
        Owner shall thereafter be entitled on exercise of this Warrant to purchase,
        with
        respect to each share of Common Stock purchasable hereunder immediately before
        the consolidation or merger becomes effective, the securities or other
        consideration to which a holder of one share of Common Stock is entitled
        in the
        consolidation or merger without any change in or payment in addition to the
        Purchase Price in effect immediately prior to the merger or consolidation.
        The
        Company shall take any necessary steps in connection with a consolidation
        or
        merger to assure that all the provisions of this Warrant shall thereafter
        be

      
        
           

        

        
          -2-

          
            

          

        

        
           

        

      

       

      applicable,
        as nearly as reasonably may be, to any securities or other consideration
        so
        deliverable on exercise of this Warrant. A sale or lease of all or substantially
        all the assets of the Company for a consideration (apart from the assumption
        of
        obligations) consisting primarily of securities is a consolidation or merger
        for
        the foregoing purposes.

      

      1.11 Notice
        of Adjustment. On
        the
        happening of an event requiring an adjustment of the Purchase Price or the
        shares available for purchase hereunder, the Company shall forthwith give
        written notice to the Registered Owner stating the adjusted Purchase Price
        and
        the adjusted number and kind of securities or other property available for
        purchase hereunder resulting from the event and setting forth in reasonable
        detail the method of calculation and the facts upon which the calculation
        is
        based. The Board of Directors of the Company, acting in good faith, shall
        determine the calculation.

      

      1.12
        Notice and Effect of Dissolution.
        In case
        a voluntary or involuntary dissolution, liquidation, or winding up of the
        Company (other than in connection with a consolidation or merger covered
        by
        Section 1.10 above) is at any time proposed, the Company shall give at least
        a
        30 day written notice to the Registered Owner. Such notice shall contain:
        (a)
        the date on which the transaction is to take place; (b) the record date (which
        shall be at least 30 days after the giving of the notice) as of which holders
        of
        Common Shares will be entitled to receive distributions as a result of the
        transaction; (c) a brief description of the transaction; (d) a brief description
        of the distributions to be made to holders of Common Stock as a result of
        the
        transaction; and (e) an estimate of the fair value of the distributions.
        On the
        date of the transaction, if it actually occurs, this Warrant and all rights
        hereunder shall terminate.

      

      1.13
        Method of Giving Notice; Extent Required. Notices
        shall be given by first class mail, postage prepaid, addressed to the Registered
        Owner at the address of the Owner appearing in the records of the Company.
        No
        notice to the Registered Owner is required except as specified
        herein.

      

      1.14
        Warrant is Restricted: Exercise or Transfer Without Registration.
This
        Warrant and the Warrant Shares have not been registered under the Securities
        Act
        of 1933 (the "Act'); and are "Restricted Securities" as that term is defined
        in
        Rule 144 under the Act. The Warrants and the Warrant Shares may not be offered
        for sale, sold or otherwise transferred except pursuant to an effective
        Registration Statement under the Act or pursuant to an exemption from
        registration under the Act, the availability of which is to be established
        to
        the satisfaction of the Company. If, at the time of the surrender of this
        Warrant in connection with any exercise, transfer, or exchange of this Warrant,
        this Warrant (or in the case of any exercise, the Warrant Shares issuable
        hereunder) shall not be registered under the Act and under applicable state
        securities or blue sky laws, the Company may require, as a condition of allowing
        such exercise, transfer, or exchange (a) that the Registered Owner furnish
        to
        the Company a written opinion of counsel, which opinion and counsel are
        reasonably acceptable to the Company, to the effect that such exercise, transfer
        or exchange may be made without registration under the Act and under applicable
        state securities or blue sky laws, and (b) that the Registered Owner execute
        and
        deliver to the Company an investment letter in form and substance acceptable
        to
        the Company. The first holder of this Warrant, by taking and holding the
        same,
        represents to the Company that such holder is acquiring this Warrant for
        investment and not with a view to the distribution thereof.

      

      1.15
        Underwriting Requirements. In
        connection with any underwritten public offering, the Company shall not be
        required to include any of the shares underlying the Warrants in such
        underwriting unless the Registered Owner accepts the terms of
        the

      
        
           

        

        
          -3-

          
            

          

        

        
           

        

      

       

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

      

      1.16
        Cashless Exercise. Notwithstanding
        anything to the contrary herein, the Warrants shall be eligible for "cashless
        exercise" if and only if:

      

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

      

      (b)  Any
        partially- or wholly-owned subsidiary of the Company is sold or receives
        a cash
        payment exceeding $10,000,000 for either a license fee or dispute
        resolution.

      

      If
        a
        cashless exercise is permitted under this section, the Registered Owner may
        elect, in lieu
        of
        payment of the Purchase Price in cash, to convert this Warrant, in whole
        or in
        part, into a number of Warrant Shares determined by dividing (i) (A) the
        aggregate Market Value of the Warrant Shares or other securities otherwise
        issuable upon exercise of this Warrant minus (B) the aggregate Purchase Price
        of
        such Warrant Shares, by (ii) the Market Value of one Warrant Share. "Market
        Value" as of any date, means (x) the average of the last reported sale prices
        on
        the principal trading market for the Common Stock for the five trading days
        immediately preceding the date of any such determination, or (y) if market
        value
        cannot be calculated as of such date on the foregoing basis, Market Value
        shall
        be the fair market value as reasonably determined in good faith by the Board
        of
        Directors of the Company. For example, if a cashless exercise were permitted,
        the Market Value on the date of exercise was $3.00 per share, and the entire
        Warrant was being exercised on such date, the Registered Owner could elect
        to
        exercise this Warrant for 80,000 shares of Common Stock on a cashless
basis
        [((120,000
        x $3.00) - (120,000 x $1.00)), divided by $3.00 = 80,000 shares]. The manner
        of
        determining the Market Value of the Common Stock set forth in the foregoing
        definition shall apply with respect to any other security in respect of which
        a
        determination as to market value must be made hereunder.

      

      1.17
        Governing Law. THIS
        WARRANT SHALL BE GOVERNED AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE
        INTERNAL LAWS OF THE STATE OF DELAWARE WITHOUT REGARD TO THE BODY OF LAW
        CONTROLLING CONFLICTS OF LAW.

      

      1.18
        Amendments. This
        Warrant and any provision it may only be amended by an instrument signed
        by the
        Company and the holder.

      

      1.19
        Severability and Savings Clause. If
        any
        one or more of the provisions contained in this Warrant is for any reason
        (a)
        objected to, contested or challenged by any court, government authority,
        agency,
        department, commission or instrumentality of the United States or any state
        or
        political subdivision thereof, or any securities industry self-regulatory
        organization (collectively, "Governmental Authority"), or (b) held to be
        invalid, illegal or unenforceable in any respect, the Company and the holder
        agree to negotiate in good faith to modify such objected to, contested,
        challenged, invalid, illegal or unenforceable provision. It is the intention
        of
        Company and the holder that there shall be substituted for such objected
        to,
        contested, challenged, invalid, illegal or unenforceable provision a provision
        as similar to such provision
        as may be possible and yet be acceptable to any objecting Governmental Authority
        and be
        valid,
        legal and enforceable. Further, should any provisions of this Warrant ever
        be
        reformed or rewritten
        by a judicial body, those provisions as rewritten will be binding, but only
        in
        that jurisdiction,
        on the
        holder and the Company as if contained in the original Agreement. The
        invalidity, illegality

      
        
           

        

        
          -4-

          
            

          

        

        
           

        

      

       

      or
        unenforceability of any one or more provisions of this Warrant will not affect
        the validity and
        enforceability of any other provisions of this Warrant.

      

          Dated
        this
        24th
        day of April, 2007.

      

      GABRIEL
        TECHNOLOGIES CORPORATION 

      

      

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

      Name: T.J.
        O’Brien                                             

      Its: Acting
        COO                                                  

       

       

      -5-

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