Document:

LIABILITY UNDERTAKING
                              ---------------------

     By  this  instrument  executed June 30, 2006, Gateway Distributors, Ltd., a
Nevada corporation, (hereinafter "Gateway") covenants and agrees as follows:

     1.     Subject  to  the provisions of paragraph 3d of that certain Contract
for  Sale  of  Business and Assets dated as of June 30, 2006 between Gateway and
Marshall  Distributing,  L.L.C.,  a Utah limited liability company, EMS Business
Development,  Inc.,  a  California  corporation,  and  Terry  D.  Nielsen  (the
"Agreement") Gateway agrees to assume, pay, and discharge all debts, duties, and
obligations  that  appear, as of June 30, 2006 on the books of the business owed
and  operated  as  a  herbal and health food supplement distributing business by
Marshall  Distributing, LLC, located at 3085 Directors Row, Salt Lake City, Utah
84104,  (the  "Business  Operations").

     2.     Subject to the provisions of paragraphs 3d of the Agreement, Gateway
further agrees to indemnify and hold Marshall Distributing, L.L.C., EMS Business
Development, Inc., and Terry D. Nielsen free and harmless from any debt, duty or
obligation  described in paragraph 1 above and from any suits, actions, or legal
proceedings brought to enforce or collect any such debt, duty, or obligation.

     3.     Gateway  Distributors, Ltd., further agrees to so indemnify Marshall
Distributing,  L.L.C., EMS Business Development, Inc., and Terry D. Nielsen from
liability  or  expense  due  to  obligations relating to the Business Operations
conducted by Gateway on or after June 30, 2006.

Dated as of June 30, 2006

                                               GATEWAY:

                                               Gateway Distributors, Ltd.
                                               a Nevada corporation

                                               By:
                                                  ------------------------------

                                                  Its:
                                                      --------------------------OPERATIONS & ASSETS NOTE
                            ------------------------
                                    (SECURED)

$5,230,000.00                                                      JUNE 30, 2006
-------------                                                      -------------

     FOR  VALUE  RECEIVED,  Gateway  Distributors,  Ltd.,  (hereinafter  called
"Maker")  promises  to pay to the order of Marshall Distributing, L.L.C., a Utah
limited  liability  company,  and  EMS  Business Development, Inc., a California
corporation,  or  assignee (hereinafter called Payee), the principal sum of Five
Million  Two  Hundred Thirty and No/100 Dollars ($5,230,000.00) without interest
on  or  before  September  1,  2007.

     All payments shall be made in full and in a timely manner without deduction
or  set  off.

     The  Maker  shall  have  the  right to prepay this Operations & Assets Note
(hereafter the "Note) in whole or in part at any time, without the prior written
consent of the Payee and without premium or penalty.

     This  Note  is  secured by certain collateral (the Collateral) described in
the Security Agreement and UCC-1 Financing Statement of even date herewith.

     If default be made in the payment, in whole or in part, of any sum provided
for  herein  when due; or, if default shall be made with respect to any covenant
or  obligation to be performed by Maker as provided in that certain Contract for
Sale  of Business and Assets dated as of June 30, 2006, between Maker, Payee and
Terry  D.  Nielsen  (the "Agreement") and such default has not been cured within
fifteen  (15)  days after written notice thereof; then Payee may, at its option,
without  further  notice or demand, declare the unpaid principal balance and any
accrued  interest  on  this  Note at once due and payable and pursue any and all
rights,  remedies and recourses available to Payee, or pursue any combination of
the foregoing, all remedies hereunder, at law or in equity being cumulative.

     In  the  event  of  any  default hereunder, Maker shall pay to Payee a late
charge  equal  to  ten percent (10%) of the installment or amount in default and
unpaid  principal  balance  of  this Note shall bear interest from June 30, 2006
until  such  default  has  been fully cured at the rate of ten percent (10%) per
annum.

     Failure  to exercise any of the foregoing options upon the happening of one
or more defaults shall not constitute a waiver of the right to exercise the same
or  any  other option at any subsequent time in respect to the same or any other
default.  The  acceptance  by  Payee  of any payment hereunder that is less than
payment in full of all amounts due and payable at the time of such payment shall
not constitute a waiver of the right to exercise any of the foregoing options at
that  time  or  at any subsequent time or nullify any prior exercise of any such
option  without  the  express  written  consent  of  the  Payee.

                                   Page 1 of 3
<PAGE>
     All  amounts  payable  hereunder  are payable in lawful money of the United
States  of  America.  Checks  are  deemed payment when received by Payee.  Maker
agrees to pay all costs of collection hereof when incurred, including reasonable
attorneys  fees,  whether or not any legal action shall be instituted to enforce
this  Note.

     It  is  expressly stipulated and agreed to be the intent of Maker and Payee
at all times to comply with the applicable Nevada law governing the maximum rate
or  amount of interest payable on this Note or the indebtedness evidenced hereby
(or applicable United States federal law to the extent that it permits the Payee
to  contract  for, charge, take, reserve or receive a greater amount of interest
than under Nevada law).  If the applicable law is ever judicially interpreted so
as  to  render usurious any amount called for under this Note or contracted for,
charged,  taken,  reserved  or received with respect to such indebtedness, or if
Payees  exercise  of  the  option herein contained to accelerate the maturity of
this  Note,  or  if  any  prepayment  by  Maker results in Maker having paid any
interest  in  excess  of that permitted by applicable law, then it is Makers and
Payees  express intent that all excess amounts theretofore collected by Payee be
credited  on  the  principal  balance of this Note (or, if this Note has been or
would  thereby  be  paid in full, refunded to Maker), and the provisions of this
Note  immediately  be  deemed  reformed  and  the amounts thereafter collectible
hereunder  and thereunder reduced, without the necessity of the execution of any
new  document,  so as to comply with the applicable law, but so as to permit the
recovery  of  the  fullest amount otherwise called for hereunder and thereunder.

     All  sums  paid  or  agreed to be paid to Payee for the use, forbearance or
detention of the indebtedness evidenced hereby shall, to the extent permitted by
applicable law, be amortized, prorated, allocated and spread throughout the full
term  of  such  indebtedness until payment in full so that the rate or amount of
interest  on account of such indebtedness does not exceed the usury ceiling from
time  to time in effect and applicable to such indebtedness evidenced hereby for
so  long  as  any  debt  is  outstanding.

     All notices hereunder shall be given at the following addresses:

     If to Maker:     2555 East Washburn Road, Las Vegas, Nevada, 89081.

     If to Payee:     3085 West Directors Row, Salt Lake City, Utah,  84104
     and              2771 E. French Camp Road, Manteca, California, 95336.

Either  party  may  change  their address for notice purposes upon giving thirty
(30)  days  prior  notice  thereof  to  the  other party in accordance with this
paragraph.  All  notices  given  hereunder  shall  be  in  writing  and shall be
considered  properly  given if mailed by first class United States Mail, postage
prepaid, registered or certified with return receipt requested, or by delivering
same  in  person  to  the intended addressee or by prepaid telegram.  Any notice
mailed  as  above  provided  shall  be effective two (2) business days after its
deposit  in  the  custody of the United States Postal Service; all other notices
shall  be  effective  upon  receipt  by  the  addressee.

                                   Page 2 of 3
<PAGE>
     This  Note  shall be governed, construed and enforced according to the laws
of  the  State  of  Nevada.

     EXECUTED as of the date and year first above written.

                                              Gateway Distributors, Ltd.
                                              a Nevada corporation

                                              By:
                                                 -------------------------------

                                                 Its:
                                                     ---------------------------

                                   Page 3 of 3SECURITY AGREEMENT
                               ------------------

     This  Security  Agreement is made and entered into and effective as of June
30,  2006,  by  and  between  Gateway  Distributors,  Ltd., a Nevada corporation
(Debtor),  and  Marshall Distributing, L.L.C., a Utah limited liability company,
EMS  Business  Development, Inc., a California corporation and Terry D. Nielsen,
(Secured  Party),  as  follows:

     For  value  received,  the  Debtor  grants  to the Secured Party a security
interest  in  the assets described on Exhibits I and II attached hereto together
with all accessions to, replacements of, and proceeds therefrom (the Collateral)
to  secure:  (1)  the  Debtor's  note of $5,230,000.00 to Marshall distributing,
L.L.C.,  a  Utah limited liability company and EMS Business Development, Inc., a
California  corporation  dated  as  of  June  30,  2006; and (2) Debtors note of
$770,000.00  to  Terry  D.  Nielsen  dated  as  of June 30, 2006; (3) any future
advances  by  the Secured Party to the Debtor, to be evidenced by similar notes;
(4)  any  expenditures  incurred  by  the  Secured  Party  in the collection and
enforcement  of  the  notes and/or other indebtedness of the Debtor; and (5) all
liabilities  of  the Debtor to the Secured Party now existing or incurred in the
future,  matured  or  unmatured,  direct  or  contingent,  and  any  renewals,
extensions,  and substitutions of those liabilities, specifically including, but
not limited to Debtor's obligations to Secured Party as provided in that certain
Contract  for  Sale  of  Business  and  Assets dated as of June 30, 2006 between
Debtor  and  Secured  Party  (the  "Agreement").

     The Debtor warrants, covenants, and agrees as follows:

                                      Title

     1.  Except  for the security interest granted by this agreement, the Debtor
has,  or  on  acquisition  will have, full title to the Collateral free from any
lien,  security  interest,  encumbrance,  or  claim, and the Debtor will, at the
Debtor's cost and expense, defend any action that may affect the Secured Party's
security interest in, or the Debtor's title to, the Collateral.

                               Financing Statement

     2.  No financing statement covering the Collateral or any part of it or any
proceeds  of it other than the financing statement to be executed in conjunction
with  this  Security  Agreement  is  on  file  in  any  public  office.

                        Sale or Disposition of Collateral

     3.  The  Debtor will not, without the written consent of the Secured Party,
sell,  contract  to sell, encumber, or dispose of the Collateral or any interest
in the Collateral until this Security Agreement and all debts secured by it have
been  fully  satisfied.

                                        1
<PAGE>
                            Protection of Collateral

     4.  The  Debtor  will  keep  the Collateral free and clear of all liens and
claims  except  as  may be permitted herein.  Debtor shall maintain any personal
property  which  constitutes  part of the Collateral in good condition and shall
exercise  due  diligence  in  the  repair and maintenance of such portion of the
Collateral.  Debtor  will  provide Secured Party with such information as may be
reasonably  requested by Secured Party from time to time regarding the condition
and  location  of  such  portion  of  the  Collateral.

                              Taxes and Assessments

     5.  The  Debtor  will pay promptly when due all taxes, assessments and fees
or  licenses  attributable  to the Collateral, or any part of the Collateral, or
for  its  use  and  operation.

                  Security Interest in Proceeds and Accessions

     6.  The  Debtor  grants  to the Secured Party a security interest in and to
all  proceeds, increases, substitutions, replacements, additions, and accessions
to the Collateral and to any part of the Collateral. This provision shall not be
construed  to  mean  that  the  Debtor  is authorized to sell, or dispose of the
Collateral except sales of inventory in the ordinary course of business, without
the  prior  written  consent  of  the  Secured  Party.

                         Decrease in Value of Collateral

     7.  The Debtor shall, if in the Secured Party's judgment the Collateral has
materially  decreased  in  value  or if the Secured Party shall at any time deem
that the Secured Party is financially unstable, either provide enough additional
Collateral  to  satisfy the Secured Party or reduce the total indebtedness by an
amount  sufficient  to  satisfy  the  Secured  Party.

                            Reimbursement of Expenses

     8.  At  the  option  of  the Secured Party, the Secured Party may discharge
taxes, liens, interest, or perform or cause to be performed for and on behalf of
the Debtor any actions and conditions, obligations, or covenants that the Debtor
has  failed  or  refused  to  perform  as  provided herein or as provided in the
Agreement  and  may enter the premises where the Collateral or any part of it is
located  and cause to be performed as agent and on the account of the Debtor any
acts  that the Secured Party may deem necessary for the protection, preservation
or  proper  maintenance  of  the  Collateral or any part of it. Any and all sums
expended  by  the  Secured Party under this paragraph, including but not limited
to,  attorneys'  fees,  court  costs, agent's fees, or commissions, or any other
costs  or  expenses,  shall bear interest from the date of payment at the annual
rate  of  ten  (10)  percent and shall be payable at the place designated in the
Debtor's notes and shall be secured by this Security Agreement.

                                        2
<PAGE>
                                     Payment

     9.  The  Debtor  will  pay the notes secured by this Security Agreement and
any  renewal  or  extension  of  it  and  any other indebtedness secured by this
Security  Agreement  in  accordance  with  the  terms  and  provisions  of  the
indebtedness  and/or  the Agreement and will repay immediately all sums expended
by  the  Secured  Party  in  accordance  with  the  terms and provisions of this
Security Agreement. On full payment by the Debtor of all indebtedness secured by
this  Security  Agreement  in  accordance  with  this  Security  Agreement, this
Security  Agreement  shall  expire, and the Secured Party's security interest in
the Collateral, as set forth in this Security Agreement, shall terminate.

                           Change of Place of Business

     10.  The Debtor will promptly notify the Secured Party of any change of the
Debtor's  residence,  chief place of business, or place where records concerning
the  Collateral  are  kept.

                         Time of Performance and Waiver

     11.  In  performing  any  act  under  this  Security Agreement and the note
secured  by  it, time shall be of the essence. The Secured Party's acceptance of
partial  or delinquent payments, or the failure of the Secured Party to exercise
any  right  or  remedy,  shall  not constitute a waiver of any obligation of the
Debtor  or  right  of the Secured Party and shall not constitute a waiver of any
other similar default that occurs later.

                                     Default

     12.  The  Debtor  shall  be in default under this Security Agreement on the
occurrence of any of the following events or conditions:

          (1)  Default in the payment or performance of the Agreement and/or any
     note,  obligation,  covenant,  or  liability  secured  by  this  Security
     Agreement;

          (2)  Any  warranty,  representation, or covenant made, furnished or to
     be  performed  by  or  on  behalf  of the Debtor herein or in the Agreement
     proves  to have been false in any material respect or is not performed in a
     timely  manner;

          (3)  Any event that results in the acceleration of the maturity of the
     indebtedness  of  the  Debtor  to others under any indenture, agreement, or
     undertaking;

          (4)  Any sale or encumbrance (except as expressly permitted herein) to
     or  of  any  of  the  Collateral,  or  the  making of any levy, seizure, or
     attachment  of  or  on  the  Collateral;

          (5)  Any  time the Secured Party reasonably believes that the prospect
     of  payment  or  any indebtedness secured by this Security Agreement or the
     performance  of  this  Security  Agreement  is  impaired;  or

                                        3
<PAGE>
          (6)  Dissolution,  termination  of  existence,  insolvency,  business
     failure,  appointment  of  a  receiver  for  any  part  of  the Collateral,
     assignment  for  the  benefit  of  creditors,  or  the  commencement of any
     proceeding  under any bankruptcy or insolvency law by or against the Debtor
     or  any  guarantor  or  surety  for  the  Debtor.

                                    Remedies

     13.  On the occurrence of any event of default, and at any time thereafter,
the  Secured  Party  may  declare  all  obligations  secured  due  and  payable
immediately  and  may proceed to enforce payment and exercise any and all of the
rights and remedies provided either at law or in equity possessed by the Secured
Party.

     The  Secured  Party  may  require the Debtor to assemble the Collateral and
make  it  available  to  the  Secured Party at any place to be designated by the
Secured  Party that is with the United States of America.  Unless the Collateral
is  perishable,  threatens  to  decline  speedily  in  value,  or  is  of a type
customarily  sold on a recognized market, the Secured Party will give the Debtor
reasonable  notice of the time and place of any public sale or of the time after
which any private sale or any other intended disposition of the Collateral is to
be  made.  The  requirements  of reasonable notice shall be met if the notice is
mailed,  postage prepaid, to the address of the Debtor shown at the beginning of
this  Security  Agreement  at  least  five  days  before the time of the sale or
disposition.  Expenses of retaking, holding, preparing for sale, selling, or the
like  shall  include  the  Secured  Party's reasonable attorneys' fees and legal
expenses.

                            Miscellaneous Provisions

     14.  (a) This Security Agreement shall be construed under and in accordance
with  Nevada.

     (b) This Security Agreement shall be binding on and inure to the benefit of
the  parties  and  their  respective successors and assigns as permitted by this
Security  Agreement.

     (c) Should any litigation be commenced between the parties to this Security
Agreement  concerning the Collateral, this Security Agreement, or the rights and
duties  of  either  party  in  relation  to  them, the prevailing party shall be
entitled  to  a  reasonable  sum  as reimbursement for attorneys' fees and legal
expenses.

     (d)  In  case  any one or more of the provisions contained in this Security
Agreement shall for any reason be held invalid, illegal, or unenforceable in any
respect, the invalidity, illegality, or unenforceability of that provision shall
not  affect  any  other  provision of this Security Agreement, and this Security
Agreement  shall  be  construed  as  if  the  invalid, illegal, or unenforceable
provision  had  never  been  contained  in  it.

                                        4
<PAGE>
     (e)  This  Security  Agreement  the  Debtor's  notes  and  the  Agreement,
collectively  constitutes  the  agreement  of  the  parties  and  collectively
supersedes  any  prior  understandings or written or oral agreements between the
parties  respecting  the  subject  matter  of  this  Security  Agreement.

     Executed and effective as of June 30, 2006.

                                        DEBTOR:

                                        Gateway Distributors, Ltd.
                                        a Nevada corporation

                                        By:
                                           -------------------------------------

                                             Its:
                                                 -------------------------------

                                        SECURED PARTY:

                                        Marshall Distributing, L.L.C.
                                        a Utah limited liability company

                                        By:
                                           -------------------------------------

                                             Its:
                                                 -------------------------------

                                        By:
                                           -------------------------------------

                                             Its:
                                                 -------------------------------

                                        EMS Business Development, Inc.
                                        a California corporation

                                        By:
                                           -------------------------------------

                                             Its:
                                                 -------------------------------

                                        By:
                                           -------------------------------------

                                             Its:
                                                 -------------------------------

                                        ----------------------------------------
                                        Terry D. Nielsen

                                        5
<PAGE>
                                     CONSENT
                                     -------

     Gateway  Venture  Holdings,  Inc.,  a  wholly  owned subdivision of Gateway
Distributors, Ltd., hereby consents to the terms and conditions set forth in the
foregoing  Security  Agreement  and  hereby  grants  to Secured Party a security
interest  in  the  CBAY Shares as provided above and shall deliver possession of
the  CBAY  Shares  to  Turn Key Financial Services, Inc. ("Escrow Holder") to be
held and/or liquidated as provided in the Agreement.

                                        Gateway Venture Holdings, Inc.

                                        By:
                                           -------------------------------------

                                             Its:
                                                 -------------------------------

                                        6
<PAGE>
                                    Exhibit I

                                 Business Assets

<PAGE>
                            Exhibit II - CBAY Shares

     Twelve  Million  (12,000,000)  shares  of  Cal-Bay  International,  Inc.,
preferred  B  stock,  held in the name of Gateway Venture Holdings, Inc., wholly
owned  subsidiary  of  Gateway  Distributors,  Ltd.)  held in escrow by Turn-Key
Financial Services, Inc. ("Escrow Holder").

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