Document:

June 30, 2012 Exhibit 10.11

 Exhibit 10.11 

THE SECURITIES REPRESENTED HEREBY HAVE NOT
BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"), OR UNDER THE SECURITIES LAWS
OF CERTAIN STATES.  THESE SECURITIES ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE AND MAY
NOT BE TRANSFERRED OR RESOLD EXCEPT AS PERMITTED UNDER THE ACT AND THE APPLICABLE STATE SECURITIES
LAWS, PURSUANT TO REGISTRATION OR EXEMPTION THEREFROM.  LENDERS SHOULD BE AWARE THAT THEY MAY BE
REQUIRED TO BEAR THE FINANCIAL RISKS OF THIS INVESTMENT FOR AN INDEFINITE PERIOD OF TIME.  THE ISSUER OF
THESE SECURITIES MAY REQUIRE AN OPINION OF COUNSEL IN FORM AND SUBSTANCE SATISFACTORY TO THE ISSUER
TO THE EFFECT THAT ANY PROPOSED TRANSFER OR RESALE IS IN COMPLIANCE WITH THE ACT AND ANY APPLICABLE
STATE SECURITIES LAWS.

       CAVITATION TECHNOLOGIES, INC.

       PROMISSORY NOTE

	

$100,000.00

	

                December  27, 2011

1.Principal and Interest

FOR VALUE RECEIVED, Cavitation Technologies, Inc. (the "Company") hereby absolutely and unconditionally
promises to pay to Todd Zelek (the "Lender"), or order, the principal amount of one hundred thousand dollars
($100,000) as set forth below.  This note is senior to all future debt
obligations. 

2.Repayments and Prepayments; Security.  

a. All principal and interest due under this Note shall be due and payable on demand.  Interest is payable at a
rate of 12% p.a. on the unpaid balance.

b. The Company may pre-pay this Note at any time.  

                                               1

3.Events of Default; Acceleration.  

a.The principal amount of this Note is subject to prepayment in whole or in part upon the occurrence and
during the continuance of any of the following events (each, an "Event of Default"):  the initiation of any bankruptcy,
insolvency, moratorium, receivership or reorganization by or against the Company, or a general assignment of assets by the Company
for the benefit of creditors.  Upon the occurrence of any Event of Default, the entire unpaid principal balance of this Note and all of the
unpaid interest accrued thereon shall be immediately due and payable.

b.No remedy herein conferred upon the Lender is intended to be exclusive of any other
remedy and each and every remedy shall be cumulative and in addition to every other remedy hereunder, now or hereafter existing at
law or in equity or otherwise.

4.Notices.  

a.        All notices, reports and other communications required or permitted hereunder shall be in writing and
may be delivered in person, by telecopy with written confirmation, overnight delivery service or U.S. mail, in which event it may be
mailed by first-class, certified or registered, postage prepaid, addressed (i) if to a Lender, at such Lender's address as the
Lender shall have furnished the Company in writing and (ii) if to the Company at such address as the Company shall have
furnished the Lender(s) in writing).

b.Each such notice, report or other communication shall for all purposes under this Note be treated as
effective or having been given when delivered if delivered personally or, if sent by mail, at the earlier of its receipt or 72 hours after the
same has been deposited in a regularly maintained receptacle for the deposit of the United States mail, addressed and mailed as
aforesaid, or, if sent by electronic communication with confirmation, upon the delivery of electronic communication.

5.Miscellaneous.

a. Neither this Note nor any provisions hereof may be changed, waived, discharged or terminated orally,
but only by a signed statement in writing.

b.No failure or delay by the Lender to exercise any right hereunder shall operate as a waiver thereof, nor
shall any single or partial exercise of any right, power or privilege preclude any other right, power or privilege.  The provisions of this
Note are severable and if any one provision hereof shall be held invalid or unenforceable in whole or in part in any jurisdiction, such
invalidity or unenforceability shall affect only such provision in such jurisdiction.  This Note expresses the entire understanding of the
parties with respect to the transactions contemplated hereby.  The Company and every endorser and guarantor of this Note regardless
of the time, order or place of signing hereby waives presentment, demand, protest and notice of every kind, and assents to any
extension or postponement of the time for payment or any other indulgence, to any substitution, exchange or release of collateral, and
to the addition or release of any other party or person primarily or secondarily liable.

                                               2

c.If Lender retains an attorney for collection of this Note, or if any suit or proceeding is brought for the
recovery of all, or any part of, or for protection of the indebtedness respected by this Note, then the Company agrees to pay all costs
and expenses of the suit or proceeding, or any appeal thereof, incurred by the Lender, including without limitation, reasonable
attorneys' fees.

d.This Note shall for all purposes be governed by, and construed in accordance with the laws of the State
of California (without reference to conflict of laws).

e.This Note shall be binding upon the Company's successors and assigns, and shall inure to the benefit of
the Lender's successors and assigns.

IN WITNESS WHEREOF, the Company has caused this Note to be executed by its duly authorized officer to take effect as of the
date first hereinabove written.

	

LENDER

	

CAVITATION TECHNOLOGIES, INC.

	

By: /s/ Todd Zelek

	

 By: /s/ R.L. Hartshorn   

	

Title: CEO

	

 Title: CFO

   

   

   

                                               3ex10_20.htm

Exhibit 10.20

 

SECOND AMENDMENT TO AGREEMENT OF LEASE

THIS SECOND AMENDMENT TO AGREEMENT OF LEASE (this “Amendment”) is made as of July 19, 2012, by and between LIBERTY PROPERTY LIMITED PARTNERSHIP, a Pennsylvania limited partnership (“Landlord”) and SYNERGETICS USA, INC., a Delaware corporation (“Tenant”).

BACKGROUND

A.    Landlord and Valley Forge Scientific Corp., predecessor in interest to Tenant, entered into a Lease Agreement dated May 3, 2005, as amended by an Amendment to Agreement of Lease dated March 26, 2009 (the “Lease”), with respect to Suite 110 at 3600 Horizon Drive, Upper Merion Township, Renaissance Corporate Park, Montgomery County, Pennsylvania, consisting of approximately 13,625 rentable square feet as more fully described in the Lease.

B.    The Expiration Date of the Lease is October 31, 2012.  Landlord and Tenant desire to extend the Term of the Lease to October 31, 2015.

NOW, THEREFORE, the parties hereto, in consideration of the mutual promises and covenants contained herein and in the Lease, and intending to be legally bound hereby, agree that the Lease is amended as follows:

1.   Term.  The Term is hereby extended for an additional three (3) years.  Accordingly, Section 1(c) defining “TERM” is amended by deleting the reference to “seventy-two (72) months” and inserting “One hundred eight (108) months” in its place, and the Expiration Date of the Lease shall be October 31, 2015.

2.   Minimum Annual Rent.  The following schedule sets forth “MINIMUM ANNUAL RENT” for periods beginning November 1, 2012, is added to Section 1(d)(i).

	
Lease Period

	 	
Rate/Sq. Ft.

	 	
Annual

	 	
Monthly Installment

	  	 	  	 	  	 	  
	
11/1/12 – 10/31/13

	 	
$9.10

	 	
$123,987.50

	 	
$10,332.29

	
11/1/13 – 10/31/14

	 	
$9.60

	 	
$130,800.00

	 	
$10,900.00

	
11/1/14 – 10/31/15

	 	
$10.10

	 	
$137,612.50

	 	
$11,467.71

3.   Payment of Expenses.  Tenant shall continue to pay Annual Operating Expenses and monthly installments on account of estimated Annual Operating Expenses based on Tenant’s Proportionate Share, which shall be subject to reconciliation and adjustment as provided in Section 7 of the Lease.  Tenant shall continue to be responsible to pay its utilities charges, which are billed separately and directly to Tenant.

4.   “As-Is”.  The condition of the Premises shall be “as is”, and Landlord shall have no obligation through the Premises further as a condition of this Amendment.

5.   Broker.  Tenant represents and warrants to Landlord that no broker is entitled to a commission through Tenant with respect to this Amendment.  Tenant shall indemnify and hold Landlord harmless from a breach of this representation and warranty.

 

  

  

  

6.   Confession of Judgment.  Tenant herby agrees to the Confession of Judgment provision as set forth in Section 29 of the Lease, restated as follows:

(a)           When this Lease and the Term or any extension thereof shall have been terminated on account of any default by Tenant, or when the Term or any extension thereof shall have expired after notice and failure to cure as provided in this Lease, Tenant hereby authorizes any attorney of any court of record of the Commonwealth of Pennsylvania to appear for Tenant and for anyone claiming by, through or under Tenant and to confess judgment against all such parties, and in favor of Landlord, in ejectment and for the recovery of possession of the Premises, for which this Lease or a true and correct copy hereof shall be good and sufficient warrant.  If for any reason after such action shall have been commenced it shall be determined and possession of the Premises remain in or be restored to Tenant, Landlord shall have the right for the same default and upon any subsequent default(s) or upon the termination of this Lease or Tenant’s right of possession as herein set forth, to again confess judgment as herein provided, for which this Lease or a true and correct copy hereof shall be good and sufficient warrant.

(b)           If Tenant shall default in the payment of the Rent due hereunder, after notice and failure to cure as provided in this Lease, Tenant hereby authorizes any attorney of any court of record of the Commonwealth of Pennsylvania to appear for Tenant and to confess judgment against Tenant, and in favor of Landlord, for all sums due hereunder plus interest, costs and an attorney’s collection commission equal to the greater of 10% of all such sums of $1,000, for which this Lease or a true and correct copy hereof shall be good and sufficient warrant.  TENANT UNDERSTANDS THAT THE FOREGOING PERMITS LANDLORD TO ENTER A JUDGMENT AGAINST TENANT WITHOUT PRIOR NOTICE OR HEARING.  ONCE SUCH A JUDGMENT HAS BEEN ENTERED AGAINST TENANT, ONE OR MORE WRITS OF EXECTUION OR WRITS OF GARNISHMENT MAY BE ISSUED THEREON AFTER NOTICE TO TENANT AS PROVIDED BY LAW.  PURSUANT TO SUCH WRITS, LANDLORD MAY CAUSE THE SHERIFF OF THE COUNTY IN WHICH ANY PROPERTY OF TENANT IS LOCATED TO SEIZE TENANT’S PROPERTY BY LEVY OR ATTACHMENT.  IF THE JUDGMENT AGAINST TENANT REMAINS UNPAID AFTER SUCH LEVY OR ATTACHMENT, LANDLORD CAN CAUSE SUCH PROPERTY TO BE SOLD BY THE SHERIFF EXECUTING THE WRITS, OR, IF SUCH PROPERTY CONSISTS OF A DEBT OWED TO TENANT BY ANOTHER ENTITY, LANDLORD CAN CAUSE SUCH DEBT TO BE PAID DIRECTLY TO LANDLORD IN AN AMOUNT UP TO BUT NOT TO EXCEED THE AMOUNT OF THE JUDGMENT OBTAINED BY LANDLORD AGAINST TENANT, PLUS THE COSTS OF THE EXECUTION.  Such authority shall not be exhausted by one exercise thereof, but judgment may be confessed as aforesaid from time to time as often as any of the said rent and other sums shall fall due or be in arrears, and such powers may be exercised as well after the expiration of the initial term of this Lease and during any extended or renewal of this Lease and after the expiration of any extended or renewal term of this Lease.  Notwithstanding the entry of judgment including a percentage attorney’s commission as stated above, if Tenant tenders payment in full of the principal indebtedness, interest, cost and all other amounts included in the judgment amount (other than the percentage attorney’s commission), plus an amount equal to the actual attorney’s fees incurred by the Landlord in enforcing its rights under this lease, Landlord shall satisfy such judgment.

(c)           The warrants to confess judgment set forth above shall continue in full force and effect and be unaffected by amendments to this Lease or other agreements between Landlord and Tenant even if any such amendments or other agreements increase Tenant’s obligations or expand the size of the Premises.  Tenant waives any procedural errors in connection with the entry of any such judgment or in the issuance of any one or more writs of possession or execution or garnishment thereon.

 

  

  

  

 

(d)           PROVIDED THAT TENANT HAS RECEIVED NOTICE OF DEFAULT AND HAS FAILED TO CURE SAME AS PERMITTED INT HIS LEASE, TENANT KNOWINGLY AND EXPRESSLY WAIVED THE RIGHT TO RECEIVE ANY FURTHER NOTICE TO QUIT UNDER THE PENNSYLVANIA LANDLORD TENANT ACT PRIOR TO LANDLORD COMMENCING AN ACTION FOR REPOSSESSION OF THE PREMISES.

7.   Full Force and Effect.  Except as expressly modified herein, the terms and conditions of the Lease shall remain unchanged and in full force and effect.

 

INWITNESS WHEREOF, Landlord and Tenant have executed this Amendment as of the day and year first above written.

 

	 	
LANDLORD:

	 	
LIBERTY PROPERTY LIMITED PARTNERSHIP

	 	
By:

	
Liberty Property Trust, Sole General Partner

	 	
By:

	
/s/ James J. Mazzarelli, Jr.

	 
	 	  	
James J. Mazzarelli, Jr.

	 	  	
Senior Vice President / Regional Director

	 
	 
	 	
TENANT:

	 	
SYNERGETICS USA, INC.

	 	
By:

	
/s/ Jerry Malis

	 
	 	
Name:

	
J. Malis

	 	
Title:

	
Executive Vice President, CSO

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