Promissory Note Between Galaxy Nutritional Foods, Inc. and Target Container Inc. Dated August 15, 2002

Contract Categories: Business Finance › Note Agreements
Summary

Galaxy Nutritional Foods, Inc. has agreed to repay Target Container Inc. $347,475.27 plus interest at 7% per year, according to a set payment schedule over 12 months starting August 15, 2002. Payments are due monthly, and the borrower may prepay without penalty. If Galaxy Nutritional Foods, Inc. fails to pay or enters bankruptcy, the full amount becomes immediately due. The agreement is governed by Georgia law and includes provisions for attorney fees if collection is required.

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EX-10.31 6 ex1031-1102.txt PROMISSORY NOTE EXHIBIT 10-31 PROMISSORY NOTE August 15, 2002 $347,475.27 - ---------------- ----------- FOR VALUE RECEIVED, the undersigned (hereinafter referred to as "Maker") promises to pay to Target Container Inc_, (hereinafter referred to as "Payee"), at Payee's office at 227 SW 57th Avenue Ocala, Florida 34474, or at such other place as the holder hereof may designate, the principal sum of Three Hundred Fourty Seven Thousand, Four Hundred Seventy Five Dollars and Twenty Seven Cents ($347,475.27), together with interest, all as set forth on the amortization schedule attached hereto as Exhibit A and incorporated herein by this reference. Maker may prepay the whole or any part of the principal amount of this Note from time to time without premium or penalty. The occurrence of any one or more of the following events shall constitute a default (hereinafter referred to as an "Event of Default"): (i) Maker fails to pay any amount when due; (ii) Maker makes an assignment for the benefit of creditors, or an action is brought by Maker seeking Maker's dissolution or liquidation of its assets or seeking the appointment of a trustee, interim trustee, receiver or other custodian for any of its property, or Maker commences a voluntary case under the Federal Bankruptcy Code, or a reorganization or an arrangement proceeding is instituted by Maker for the settlement, readjustment, composition or extension of any of its debts upon any terms; or (iii) an action is brought seeking Maker's dissolution or liquidation of any of its assets or seeking the appointment of a trustee, interim trustee, receiver or other custodian for any of its property, and such action is consented to or acquiesced in by Maker or is not dismissed within ninety (90) days of the date upon which it was instituted, or a proceeding under the Federal Bankruptcy Code is instituted against Maker and an order for relief is entered in such proceeding or such proceeding is consented to or acquiesced in by Maker or is not dismissed within (90) days of the date upon which it was instituted. Upon the occurrence of an Event of Default, Payee, at its option, without demand or notice of any kind, may declare this Note immediately due and payable, whereupon all outstanding principal and interest shall become immediately due and payable. If this Note is collected by or through an attorney-at-law, all costs of collection, including reasonable attorney's fees, shall be paid by Maker. Time is of the essence. Demand, presentment, notice, notice of demand, notice for payment, protest and notice of dishonor are hereby waived by each and every maker, guarantor, surety and other person or other entity primarily or secondarily liable on this Note. Payee shall not be deemed to waive any of its rights unless such waiver be in writing and signed by Payee. No delay or omission by Payee in exercising any of its rights shall be construed as a consent to or a waiver of any right or remedy on any future occasion. This Note shall be governed by and construed and enforced in accordance with the laws of the State of Georgia. Whenever possible, each provision of this Note shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Note shall be prohibited by or invalid under applicable law, such provision shall be ineffective only to the extent of such prohibition or invalidity, without invalidating the remainder of such provision or the remaining provisions of this Note. SIGNED, SEALED AND DELIVERED by the undersigned as of the day and year first above set forth. Galaxy Nutritional Foods Company, Inc By: /s/ Angelo S. Morini -------------------- Angelo S. Morini ATTEST: President /s/ Salvatore J. Furnari - ------------------------ NOTE AMORTIZATION SCHEDULE EXHIBIT A ================================================================================ - -------------------------------------------------------------------------------- MAKER: GALAXY NUTRITIONAL FOODS, INC 2441 VISCOUNT ROW ORLANDO, FL 32809 - ---------------------------------------- ---------------------------------- NOTE DETAILS NOTE SUMMARY - ---------------------------------------- ---------------------------------- Note Amount $ 347,475.27 Scheduled $ 30,065.90 Payment ----------------- ---------------- Scheduled Annual Interest Number of Rate 7.00 % Payments 12 ----------------- ---------------- Amortization Actual Number Period in Years 1 of Payments 12 ----------------- ---------------- Number of Total Early Payments Per Year 12 Payments $ - ----------------- ---------------- Start Date of 8/15/2002 Total Interest $ 13,315.58 Note ----------------- ---------------------------------- Optional Extra Payments - ---------------------------------------- ------------------------- PAYEE NAME:TARGET CONTAINER - OCALA -------------------------
============================================================================================================================== - ------------------------------------------------------------------------------------------------------------------------------ PMTNO. PAYMENT BEGINNING SCHEDULED EXTRA TOTAL ENDING DATE BALANCE PAYMENT PAYMENT PAYMENT PRINCIPAL INTEREST BALANCE - ------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------ 1 9/15/2002 $ 347,475.27 $ 30,065.90 $ 30,065.90 $ 28,038.97 $ 2,026.94 $ 319,436.30 - 2 10/15/2002 319,436.30 30,065.90 - 30,065.90 28,202.53 1,863.38 291,233.78 3 11/15/2002 291,233.78 30,065.90 30,065.90 28,367.04 1,698.86 262,866.74 4 12/15/2002 262,866.74 30,065.90 30,065.90 28,532.52 1,533.39 234,334.22 5 1/15/2003 234,334.22 30,065.90 - 30,065.90 28,698.95 1,366.95 205,635.27 6 2/15/2003 205,635.27 30,065.90 - 30,065.90 28,866.37 1,199.54 176,768.90 7 3/15/2003 176,768.90 30,065.90 - 30,065.90 29,034.75 1,031.15 147,734.15 8 4/15/2003 147,734.15 30,065.90 - 30,065.90 29,204.12 861.78 118,530.03 9 5/15/2003 118,530.03 30,065.90 - 30,065.90 29,374.48 691.43 89,155.55 10 6/15/2003 89,155.55 30,065.90 - 30,065.90 29,545.83 520.07 59,609.72 11 7/15/2003 59,609.72 30,065.90 - 30,065.90 29,718.18 347.72 29,891.54 12 8/15/2003 29,891.54 30,065.90 - 29,891.54 29,717.17 174.37 0.00 - ------------------------------------------------------------------------------------------------------------------------------