EXHIBIT 10.01
PROMISSORY NOTE PURCHASE
AGREEMENT
THIS PROMISSORY NOTE PURCHASE AGREEMENT (this
“ Agreement ”) is made as of August 21, 2009 by
and among Gabriel Technologies Corporation, a Delaware corporation
(the “ Company ”), and the investors listed on
the Schedule of Investors attached hereto (each,
an “ Investor ” and collectively, the
“ Investors ”).
WHEREAS, the Company desires to raise capital of
up to $300,000 pursuant to this Agreement (the “
Financing ”);
WHEREAS, the
Investors desire to purchase, and the Company desires to sell to
each initial Investor (each an “ Initial Investor
”) who desires to participate in the Initial Closing (as
defined below), a Promissory Note in the form attached hereto as
Exhibit A (with all such Promissory Notes issued in the
Initial Closing or any Interim Closing (as defined below) referred
to herein individually as a “Note” and collectively as
the “ Notes ”) in the principal amount set forth
opposite such Investor’s name on Schedule A ),
upon the terms and conditions set forth in this Agreement;
and
WHEREAS,
subsequent to the Initial Closing and until such time as the
Company has (a) sold Notes in the aggregate principal amount of
$300,000 or, (b) in its discretion, determined that the offering of
the Notes should be terminated (the “ Open Investment
Period ”), the Company desires to offer and sell
additional Notes to additional parties that elect to participate in
the Financing (the “ Additional Investors ”),
each of whom would become an Investor pursuant to this Agreement,
at one or more Interim Closings (as defined below) in accordance
with the terms and conditions set forth in this
Agreement.
NOW, THEREFORE, in consideration of the
foregoing premises and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the
Company and the Investors hereby agree as follows:
1.
Purchase and Sale of Notes; Closings .
1.1 Sale and Issuance of Notes to
Initial Investors at Initial Closing . Subject to
the terms and conditions of this Agreement, the initial
purchase and sale of the Notes shall take place at the principal
office of the Company (the “ Closing Location
”), at 10:00 A.M., on August 21, 2009 (which time and place
are designated as the “ Initial Closing
”). At the Initial Closing, the Company shall
deliver to each Initial Investor the original Note that such
Initial Investor is purchasing at the Initial Closing upon
confirmation of receipt of payment of the purchase price therefor,
which purchase price shall equal the principal amount of the Note
purchased (the “ Purchase Price ”) and shall be
paid in cash by wire transfer.
1.2 Sale and Issuance of Notes at
Interim Closings . Subject to this Section 1.2,
after the Initial Closing, the Company may sell additional Notes to
Additional Investors at one or more interim closings (each an
“ Interim Closing ,” and collectively referred
to herein along with the Initial Closing as the “
Closings ,” or, as applicable, individually as a
“ Closing ”), provided that any such sale is
pursuant to this Agreement and any such Interim Closing occurs on
or before the end of the Open Investment Period. Any
Additional Investor purchasing a Note at any Interim Closing shall
become a party to this Agreement in full capacity as an
“Investor” in this Agreement, as if such person had
purchased Notes at the Initial Closing by executing and delivering
to the Company a counterpart signature page to this
Agreement. The representations and warranties of the
Company set forth in Section 2 hereof shall speak as of the date of
each Closing, and the representations and warranties of each
applicable Additional Investor in Section 3 hereof shall speak as
of the date of the applicable Closing. At each Interim
Closing, (i) this Agreement, including without limitation the
Schedule of Investors attached hereto, may be amended by the
Company without the consent of the Investors to include any
Additional Investors as parties hereto and to add each Additional
Investor and the principal amount of the Note being purchased by
such Additional Investor to the Schedule of Investors
attached hereto, and (ii) the Company shall deliver to each
Additional Investor the original Note that such Additional Investor
purchases at such Interim Closing upon confirmation of receipt of
payment of the Purchase Price therefor, which Purchase Price shall
equal the principal amount of the Note purchased, in cash by wire
transfer. Any Notes sold pursuant to this
Section 1.2 shall be deemed to be “Notes” for all
purposes under this Agreement.
2.
Representations and Warranties of the Company
. The Company represents and warrants the
following:
2.1 Organization, Good Standing
and Qualification . The Company is a
corporation duly organized, validly existing and in good standing
under the laws of the State of
Delaware. The Company is duly qualified to transact
business and is in good standing in each jurisdiction in which the
failure to so qualify would have a material adverse effect on its
business or properties.
2.2 Authorization
. All corporate action on the part of the Company, its
officers, directors and stockholders necessary for the
authorization, execution and delivery of this Agreement and the
Notes, the performance of all obligations of the Company hereunder
and under the Notes, and the authorization, sale and issuance of
the Notes being sold hereunder, has been taken or will be taken
prior to the Initial Closing. This Agreement and the
Notes constitute valid and legally binding obligations of the
Company, enforceable in accordance with their respective terms,
except (i) as limited by applicable bankruptcy, insolvency,
reorganization, moratorium and other laws of general application
affecting enforcement of creditors’ rights generally, and
(ii) as limited by laws relating to the availability of
specific performance, injunctive relief or other equitable
remedies.
2.3 Offering
. Subject in part to the truth and accuracy of each
Investor’s representations set forth in Section 3 of this
Agreement, the issuance and sale of the Notes as contemplated by
this Agreement are intended to be exempt from the registration
requirements of the Securities Act of 1933, as amended (the “
Securities Act ”); and
2.4 Compliance With Other
Instruments . The Company is not in material
violation of any provision of its Certificate of Incorporation as
amended to date, or Bylaws nor, to its knowledge, will the
execution and performance of this Agreement or the Notes constitute
a violation or breach of any other agreement between the Company
and any other person or entity.
3.
Representations and Warranties of the Investors
. Each Investor, severally and not jointly, hereby
represents, warrants and covenants that:
3.1 Authorization
. Such Investor has full power and authority to enter
into this Agreement, and this Agreement is a legal, valid and
binding agreement of such Investor, enforceable in accordance with
its terms.
3.2 Purchase Entirely For Own
Account . This Agreement is made with such Investor
in reliance upon such Investor’s representations to the
Company, which by such Investor’s execution of this Agreement
such Investor hereby confirms, that the Notes to be received by
such Investor will be acquired for investment for such
Investor’s own account, not as a nominee or agent, and not
with a view to the resale or distribution of any part thereof, and
that such Investor has no present intention of selling, granting
any participation in or otherwise distributing the
same. By executing this Agreement, such Investor further
represents that such Investor does not have any contract,
undertaking, agreement or arrangement with any person to sell,
transfer or grant participations to such person or to any third
person, with respect to the Note(s).
3.3 Disclosure of Information
. Such Investor has received all the information it
requested from the Company for deciding whether to purchase the
Notes. Such Investor further represents that it has had
an opportunity to ask questions and receive answers from the
Company regarding the terms and conditions of the offering of the
Notes and the business, properties, prospects, litigation matters,
and financial condition of the Company, including but not
lim
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