Document:

zealous_8ka-ex1011.htm

    EXHIBIT
      10.11

     

    SECURED
      PROMISSORY NOTE

    

     October
      5, 2007

    

    
      
        	$100,000.00  	
                New
                  York, New York 

              

      

    

     

    FOR
      VALUE
      RECEIVED, the undersigned, Zealous Trading Group, Inc., a Nevada
      corporation ("Maker"), promises to pay to Porter Partners, LP, a California
      limited partnership ("Payee") at 300 Drakes Landing Road, Suite 175, Greenbrae,
      California 94904, or at such other place as Payee may from time to time
      designate by written notice to Maker, in lawful money of the United States
      of
      America, the aggregate sum of One Hundred Thousand Dollars
      ($100,000.00).   Maker further agrees as follows:

    

    Section
      1.             
Interest Rate and Fees.

    

    Interest
      shall accrue at a rate of 12%
      per annum based on a 365 day year.

    

    Section
      2.              Payments.

    

    2.1    All
      principal
      and accrued but unpaid interest shall be paid to Payee on October 26, 2007,
      due
      on demand of the Payee, unless extended or sooner terminated by mutual agreement
      of the parties.

    

    2.2    Maker
      shall have the
      right to prepay this Note in full or in part at any time, without premium or
      penalty.

    

    Section
      3.              Default.

    

    It
      shall
      be an event of default ("Event of Default"), and the entire unpaid principal
      of
      this Note, together with accrued interest, shall become immediately due and
      payable, at the election of Payee, upon the occurrence of any of the following
      events:

    

    3.1    Any
      failure on the
      part of Maker to make any payment of all principal and interest when
      due;

     

    3.2           Maker
      shall commence (or take any action for the purpose of commencing) any proceeding
      under any bankruptcy, reorganization, arrangement, readjustment of debt,
      moratorium or similar law or statute;

     

    3.3    a
      proceeding shall be
      commenced against Maker under any bankruptcy, reorganization, arrangement,
      readjustment of debt, moratorium or similar law or statute and relief is ordered
      against it, or the proceeding is controverted but is not dismissed within sixty
      (60) days after the commencement thereof;

     

    3.4    Maker
      consents to or
      suffers the appointment of a guardian, receiver, trustee or custodian to any
      substantial part of its assets that is not vacated within thirty (30)
      days;

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    3.5         the
      dissolution, termination of existence, or insolvency of Maker; or

     

    3.6         Maker
      consents to or suffers an attachment, garnishment, execution or other legal
      process against any of his assets that is not released within thirty (30)
      days.

     

    

    Section
      5.              Conversion.

    

    Upon
      the
      request of the Payee, this Note may be converted, in whole but not in part,
      into
      that number of fully-paid and nonassessable shares of Common Stock equal to
      (a)
      the amount of the then outstanding principal and accrued interest under this
      Note, divided by (b) the Conversion Price (as defined below).  The
“Conversion Price” shall be $.02 per share. Notwithstanding any provision to the
      contrary in this Note, this Note may not be converted until an amendment to
      the
      Articles of Incorporation of the Company increasing the authorized shares of
      the
      Makers’s Common Stock to 1,500,000,000 shares is approved by a majority of the
      Makers’s shareholders (the “Authorized Share Amendment”) and is filed with the
      Secretary of State of the State of Nevada and becomes effective (the “Amendment
      Effective Date”).. The Maker agrees to use its reasonable commercial efforts to
      file a Schedule 14 C with the Securities Exchange Commission with respect to
      the
      Authorized Share Amendment by no later than February 15, 2008.

    

    Section
      6.              Mechanics
      of Conversion.

    

    Before
      the Payee shall be entitled to convert this Note into Common Stock, the Payee
      shall surrender this Note, duly endorsed, at the office of the Maker, and shall
      give written notice to the Maker at its principal corporate office of the
      election to convert and shall state therein the name or names in which the
      certificate or certificates for the Common Stock, are to be issued. The
      Maker
      shall, promptly thereafter, issue and deliver to such person at the address
      specified by the Payee, a certificate or certificates for the Common Stock
      to
      which the Payee is entitled.  Such conversion shall be deemed to have
      been made immediately prior to the close of business on the date of such
      surrender of this Note (the “Conversion Date”), and the persons entitled to
      receive the Common Stock issuable upon such conversion shall be treated for
      all
      purposes as the record holder or holders as of such date.  No
      fractional shares shall be issued upon conversion of this Note and the number
      of
      shares of Common Stock to be issued shall be rounded up to the nearest whole
      share.

    

    Section
      7.              Waivers.

    

    Maker
      waives demand, presentment,
      protest, notice of protest, notice of dishonor, and all other notices or demands
      of any kind or nature with respect to this Note.

    

    The
      Payee
      may waive any Event of Default hereunder.  Such waiver shall be
      evidenced by written notice or other document specifying the Event or Events
      of
      Default being waived and shall be binding on all existing or subsequent Payee(s)
      under this Note.

    

    Section
      8.              Securities
      Act of 1933.  Upon conversion of this
      Note, the persons entitled to receive the shares of Common Stock may be required
      to execute and deliver to the Maker an instrument, in form satisfactory to
      the
      Maker, representing that such person is an accredited investor as defined in
      Rule 501(a) of the Securities Act of 1933, as amended (the "Act") and
      the shares of Common Stock are being acquired for investment, and not with
      a
      view to distribution, within the meaning of the Act.

    

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

       

    

    Section
      9.              Shareholder
      Status.  Nothing contained in this Note
      shall be construed as conferring upon the Payee the right to vote or to receive
      dividends or to consent or to receive notice as a shareholder in respect of
      any
      meeting of shareholders for the election of directors of the Maker or of any
      other matter, or any rights whatsoever as a shareholder of the Maker prior
      to
      conversion hereof.

    

    Section
      10.            Security
      Interest.

    

    This
      Note is expressly secured by a
      pledge by the Maker of all of its assets as set forth in the Security Agreement
      (the “Security Agreement”).

    

    The
      Payee
      may file a UCC-1 Financing Statement to perfect the security interest granted
      herein. The aggregate amount of loan proceeds secured by this pledge will be
      not
      more than $100,000.00 (plus accrued and unpaid interest thereupon). The UCC-1
      security will be issued in the name of Payee or such other party designated
      by
      Payee. Upon satisfaction or conversion of this Note, the Payee shall promptly
      file a UCC-3 Termination Statement and fully and unconditionally release its
      security interest created by the Security Agreement.

    

    Section
      11.            Miscellaneous.

    

    a)         
      This Note may be altered only by prior written agreement signed by the party
      against whom enforcement of any waiver, change, modification, or discharge
      is
      sought.  This Note may not be modified by an oral agreement, even if
      supported by new consideration.

     

    b)           The
      covenants, terms and conditions contained in this Note apply to and bind the
      heirs, successors, executors, administrators and assigns of the
      parties.

     

    c)           This
      Note constitutes a final written expression of all the terms of the agreement
      between the parties regarding the subject matter hereof, are a complete and
      exclusive statement of those terms, and supersedes all prior and contemporaneous
      agreements, understandings, and representations between the
      parties.  If any provision or any word, term, clause, or other part of
      any provision of this Note shall be invalid for any reason, the same shall
      be
      ineffective, but the remainder of this Note shall not be affected and shall
      remain in full force and effect.

     

    d)           This
      Note shall be governed by the laws of New York, without giving effect to
      principals of conflicts of laws.

     

    e)    All
      notices,
      consents, or other communications provided for in this Note or otherwise
      required by law shall be in writing and may be given to or made upon the
      respective parties at the following mailing addresses:

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

     

    
      	
              Payee:    
                Porter Partners, LP 

            	 
	
              300
                Drakes Landing Road, Suite 175

            	 
	
              Greenbrae,
                CA 94904

            	 
	
              (415)
                461-4410

            	 
	 	 
	
              Maker:   
                Zealous Trading Group, Inc. 

            	 
	
              P.O.
                Box 30010

            	 
	
              Las
                Vegas, Nevada 89173-0010

            	 
	
              Att:
                Chief Executive Officer

            	 

    

     

    Such
      addresses may be changed by notice given as provided in this
      subsection.  Notices shall be effective upon the date of receipt;
      provided, however, that a notice (other than a notice of a changed address)
      sent
      by certified or registered U.S. mail, with postage prepaid, shall be presumed
      received no later than three (3) business days following the date of
      sending.

    

    (f)    This
      Note may
      be signed (including by facsimile) in any number of counterparts, each of which,
      shall be deemed to be an original and all of which together shall be deemed
      to
      be one and the same instrument.

     

    IN
      WITNESS
      WHEREOF, Maker has executed this Note effective as of the date
      first set forth above.

    

    
      	 	
              ZEALOUS
                TRADING GROUP, INC.,

              
                a
                  Nevada Corporation

              

            	 
	 	 	
               

               

            	 
	
               

            	
              By:
                

            	/s/ Milton
              C. Ault, III	 
	 	 	Name:
              Milton C. Ault,
              III	 
	 	 	Title:
              Chief Executive
              Officer	 
	 	 	 	 

    

     

     

    4Filed by Bowne Pure Compliance

 

Exhibit 10.22

WATER USE AGREEMENT

(Eldorado
Artesian Springs, Inc.)

THIS AGREEMENT is made
this 16th day of October, 2007, by and between the City of Louisville, a
Colorado home rule municipal corporation (hereinafter referred to as the
“City”), and ELDORADO ARTESIAN SPRINGS, INC., a Colorado
corporation (hereinafter referred to as “EAS”).

WITNESETH:

WHEREAS, EAS is the
owner of certain real property located at 1783 Dogwood Street, Louisville,
Colorado, which is legally described as Lot 2A, Block 1, The Park at CTC Replat
B and which property is located in the Colorado Technological Center (the
“Property”); and

WHEREAS, EAS operates
a bottling facility at the Property and has requested permission to bottle for
sale water received from the City water system; and

WHEREAS, EAS
acknowledges that City requirements, including but not limited to
Chapter 13.08 of the Louisville Municipal Code and the final PUD
development plan for the facility, require EAS to obtain permission from the
City for bottling and sale of City water; and

WHEREAS, the City is
willing to allow EAS to bottle and sell City water for a limited period of time
and upon terms and conditions of this Water Use Agreement and applicable City
ordinances, rules, regulations, specifications and policies, as amended and in
effect from time to time; and

NOW, THEREFORE, for
and in consideration of the recitals, promises and covenants contained herein,
and other good and valuable consideration, the receipt and sufficiency of which
is hereby acknowledged, EAS and the City agree as follows:

1.   Incorporation of Recitals. The foregoing recitals are incorporated into
this Agreement.

2.   Bottling
Use Allowed. The City agrees that, for the five-year period commencing
January 1, 2008, EAS may bottle for sale City potable water delivered to
Property. EAS may bottle not more than 75 acre feet of City water per year, and
shall not be permitted to carry over to any subsequent year any unused
allocation from a prior year. EAS agrees that upon expiration of such five-year
term, or upon earlier termination of this Agreement as provided herein, it
shall discontinued any bottling of City water and will disable the means by
which City water is bottled.

3.   Water
Facilities. Water used for bottling shall be delivered through and taken
from a City tap and water service connection. Any taps, lines, valves and other
facilities required for such use or service to the Property and located on the
Property (collectively the “Facilities”) shall be installed at
EAS’s sole expense and in accordance with the ordinances, rules,
regulations, specifications and policies of the City, as amended and in effect
from time to time. The City will provide any necessary meter and appurtenances.
All facilities for water service to the Property (excluding the City meter)
from the City shutoff shall be private facilities owned, operated, maintained,
repaired and replaced by EAS at its sole expense.

  

 

 

4.   Compliance with Laws; Payment of Fees. EAS agrees to comply with this
Agreement and all ordinances, rules, regulations, specifications and policies
of the City applicable to City water service, as amended and in effect from
time to time. EAS shall timely pay for the water delivered all rates, tolls,
charges, tap fees and other fees set by the City at then-applicable rates.
Throughout the term of this Agreement the City reserves the right to modify
City water rates, tolls, charges, and fees through enactments of generally
applicability to like classes and types of water users. Further, EAS
acknowledges that any bottling of City water after expiration or termination of
this Agreement must be authorized by separate written agreement with the City,
and that any such future agreement may require the payment of differential
rates, tolls, charges, and fees specific to the use of City water for bottling
purposes. Nothing in this Agreement shall limit or impair the utility
rate-setting authority of the City.

5.   Permits;
Easements. EAS shall secure at its sole expense any necessary City, County,
State, or federal permits, licenses, and temporary or permanent easements
necessary for the construction, operation, maintenance, repair and replacement
of the Facilities.

6.   Metering
and Monitoring. Water service to the Property shall be individually
metered. EAS shall allow City representatives to access the Property and the
EAS facility, and shall allow the City to install measuring and other devices
on water Facilities, for monitoring of water use by EAS and for monitoring
compliance with this Agreement. EAS agrees to provide the City with information
regarding its water use and bottling operations, at times requested by the
City, and to cooperate with the City in measuring water uses and monitoring
compliance hereunder.

7.   Limitations on Water Use and Service. EAS acknowledges that the water
supplied to the Property may require additional treatment beyond normal City
treatment. EAS at its sole expense shall be responsible for any additional
treatment desired beyond normal City treatment. EAS further acknowledges that
water service is provided on an interruptible basis and that the City may
interrupt water service to the Property for reasons including, but not limited
to, failure of supply, drought, failure of mains or the City facilities, or
causes beyond the control of the City. EAS further acknowledges that City water
service is on a first-come, first-serve basis with other water customers of the
City water system. By this Agreement, EAS shall not receive any preference for
or assurance of the availability of water service from the City. EAS
specifically agrees that the City shall not be liable for any damages caused or
resulting from any interruption of water service or the limitations on water
service contained in this Agreement, and hereby releases the City from any such
damages and liability.

9.   Rights Personal. The
permission hereunder for EAS to bottle City water for sale is personal to
EAS,
and EAS shall not assign, pledge, encumber, hypothecate or delegate
this Agreement or any portion hereof without the
City’s prior written
consent, which consent may be granted or withheld in the City’s sole
discretion. Any purported
assignment, pledge, encumbrance, hypothecation,
or delegation made without such prior written consent of the City 3
shall be of no force or effect.

  

2

 

10.   Indemnity and Release. EAS, for itself and its successors and assigns,
hereby agrees to release, discharge, defend, indemnify, protect, and hold the
City, its employees, agents, and officers free and harmless from any and all
claims, demands, actions, liabilities, damages, losses, costs, and expenses,
caused or occasioned by any intentional or negligent acts, representations, or
omissions of EAS or its employees, agents, officers, contractors, or
distributors and (1) arising out of the failure to perform any of the
terms, conditions, and obligations described in and arising from this
Agreement; (2) arising out of any treatment, bottling, sale or
distribution by EAS of City water; or (3) otherwise arising out of or
being connected with performance or nonperformance under this Agreement,
including without limitation claims of injury, illness, death, property damage,
or lost profits. This indemnification shall include, but not be limited to,
attorneys’ fees, paralegal fees, expert witness costs, court costs, and
settlement amounts paid in payment of claims and satisfaction of judgments. In
executing this Agreement, the City in no way waives or intends to waive the
limitations on liability which are provided to the City and its employees under
the Colorado Governmental Immunity Act, C.R.S. ‘ 24-10-101 et. seq.

11.   Amendment. This Agreement may not be amended except by subsequent
written agreement of the parties.

12.   Notice.
All notices, demands, requests, consents, approvals, offers, statements,
and other instruments or communications required or permitted to be given
hereunder shall be in writing and shall be deemed to be effective upon hand
delivery, upon facsimile receipt, or seventy-two (72) hours after mailing
by registered or certified mail, return receipt requested, postage prepaid,
addressed as follows:

	 	 	 
	
If to EAS: 

	 	Eldorado Artesian Springs, Inc.

attn: Douglas A. Larson,

President P.O. Box 445

Eldorado Springs, CO 80025

fax:

 

	
If to the City: 

	 	City Manager

City of Louisville

749 Main Street

Louisville, CO 80027

fax: 303-673-9043

13.   Venue.
The venue for any dispute under this Agreement shall be the District Court
in and for the County of Boulder, State of Colorado.

 

3

 

IN WITNESS WHEREOF,
the parties have executed this Agreement in duplicate originals on the day and
year first written above.

	 	 	 
	 	CITY OF LOUISVILLE

 
	 	By:   	/s/ Don Brown, Jr.
	 	 	Don Brown, Jr., Mayor Pro Tem
	 
	ATTEST: 	 
	 
	/s/ Nancy Varra, City Clerk	 
	 	 

 

ELDORADO ARTESIAN SPRINGS, INC.,

a Colorado corporation

	 
	 	By:   	/s/ Douglas A. Larson, President
	 	   	Douglas A. Larson, President 

	 	 	 	 	 
	ACKNOWLEDGMENT

 

STATE OF COLORADO
	 	)	 	 
	 
	 	)ss
	
COUNTY OF BOULDER

	 	)	 	 

The foregoing
instrument was acknowledged before me this 16th day of November, 2007, by
Douglas A. Larson, President, Eldorado Artesian Springs, Inc., a Colorado
corporation partnership.

	 	 	 
	
 

My commission expires on: February 7, 2009 

	 	Witness my hand and official seal. 
	
 

	 	 
	
(S E A L) 

	 	/s/ Destiny Phoenix

Notary Public

  

4

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