Exhibit 10.3


 


PURCHASE MONEY NOTE


 


	$2,100,000.00	Dated: December 17, 2010


 


 


FOR VALUE RECEIVED, SONO-TEK INDUSTRIAL
PARK LLC, a New York limited liability company, with an address at 2012 Route 9W, Milton, New York (the “Mortgagor”),
promises to pay to the order of JEAN K. WOODWARD, 50 Riverview Drive, Marlboro, New York 12542 (the “Seller”), or at
such other place as the Seller or holder may from time to time designate in writing, the sum of TWO MILLION ONE HUNDRED THOUSAND
AND NO/100 ($2,100,000.00) DOLLARS payable as follows:


 


The sum of $14,445.63 shall be paid on the 1st
day of February 2011, and on the 1st day of each and every month thereafter from which sum interest at the rate of five and one/half
(5-1/2%) percent per annum shall first be credited, and the balance of such payment remaining shall be credited in reduction of
the principal sum due. On the 240th payment date in January 2031, the unpaid balance of principal together with accrued interest
shall become due and payable. Interest shall not begin to accrue until January 1, 2011.


All payments shall be in lawful
money of the United States.


This Note is the note referred
to in a Purchase Money Mortgage of even date herewith on property located in the Town of Marlboro, County of Ulster, State of New
York, between the parties hereto (the “Mortgage”).


IT IS EXPRESSLY AGREED,
that the entire unpaid principal indebtedness hereof shall become immediately due and payable at the sole and exclusive option
of the holder, in the event of default of twenty (20) days in the payment of any installment of principal or interest by the Mortgagor
following notice and demand from the holder of the note to the Mortgagor.


No delay or failure on the
part of the holder to exercise any power or right shall operate as a waiver thereof and such rights and powers shall be deemed
continuous, nor shall a partial exercise preclude full exercise thereof; and no right or remedy of the holder shall be deemed abridged
or modified by any course of conduct and no waiver thereof shall be predicated thereon, nor shall failure to exercise any such
power or right subject the holder to any liability.


The Mortgagor hereby waives
presentment for payment, demand, notice of nonpayment, and notice of protest of this Note.


In the event any sum payable
shall remain unpaid for a period of twenty (20) days after the sum becomes due, there shall be a late charge of five (5%) percent
of the overdue payment.


Whenever the unpaid principal
balance hereof becomes due and payable, whether upon maturity or acceleration due to default, the amount thereof shall thereafter
bear interest at twelve (12%) percent per annum (the “Default Rate”) or the maximum rate of interest then permitted
by law, whichever is less.



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The Purchase Money Note
and Mortgage may be prepaid in whole or in part at any time in principal installments of not less than $1,000.00.


No renewal or extension
of this Note, no delay in enforcement of payment of this Note, and no delay or omission in exercising any right or power hereunder
or as otherwise set forth shall affect the liability of the Mortgagor herein.


The Mortgagor expressly
agrees to pay to the holder hereof, as soon as incurred, all costs and expenses incidental to the enforcement of its rights after
the occurrence of an event of default or to the collection of the principal indebtedness hereof, including, but not limited to
counsel fees.


The provisions of this Note
shall be interpreted and all rights and obligations shall be determined, in accordance with the laws of the State of New York.


This Note may not be changed
or terminated (including the extension of any due dates, or time periods provided herein) except by a written instrument duly executed
by the holder hereof.


 


	 	 	SONO-TEK INDUSTRIAL PARK LLC
	 	 	 
	 	 	 
	 	By:	/s/ Stephen J. Bagley
	 	 	Stephen J. Bagley
	 	 	Manager


 


 


	STATE OF NEW YORK	)	 
	 	)	ss.:
	COUNTY OF ORANGE	)	 


 


On December 17, 2010, before me,
the undersigned, a Notary Public in and for said State, personally appeared Stephen J. Bagley, personally known to me or proved
to me on the basis of satisfactory evidence to be the individual whose name is subscribed to the within instrument and acknowledged
to me that he executed the same in his capacity, and that by his signature on the instrument, the individual, or person upon behalf
of which the individual acted, executed the instrument.


 


 


_________________________________


Notary Public


 


 


JRL/ef/159097


7201-63758


11/22/10






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