Document:

REGISTRATION RIGHTS AGREEMENT

          REGISTRATION RIGHTS AGREEMENT (this "Agreement"), dated as of May
21,  2003,  by  and  between  Galaxy Nutritional Foods,  Inc.,  a  Delaware
corporation,  with  headquarters located at 2441  Viscount  Road,  Orlando,
Florida  32809  (the "Company"), and Ruggieri of Windermere Family  Limited
Partnership,  with  its  principal  address  at  9922  Lake  Louise  Drive,
Windermere, FL 34786 (the "Buyer").

                          PRELIMINARY STATEMENTS

     A.    In  connection  with the Securities Purchase  Agreement  by  and
between  the  parties  of  even  date herewith  (the  "Securities  Purchase
Agreement"),  the  Company has agreed, upon the terms and  subject  to  the
conditions of the Securities Purchase Agreement, to issue and sell  to  the
Buyer shares of the Company's common stock, par value $0.01 per share  (the
"Common Stock"); and

      B.    To  induce  the  Buyer to execute and  deliver  the  Securities
Purchase  Agreement, the Company has agreed to provide certain registration
rights  under  the Securities Act of 1933, as amended, and  the  rules  and
regulations thereunder, or any similar successor statute (collectively, the
"1933 Act"), and applicable state securities laws.

     NOW,  THEREFORE,  in  consideration of the  premises  and  the  mutual
covenants  contained herein and other good and valuable consideration,  the
receipt  and sufficiency of which are hereby acknowledged, the Company  and
the Buyer hereby agree as follows:

     1.   DEFINITIONS.

   a.      As  used in this Agreement, the following terms shall  have  the
following meanings:

                (i)   "Investor"  means  the Buyer and  any  transferee  or
assignee  thereof  who  agrees to become bound by the  provisions  of  this
Agreement in accordance with Section 9 hereof.

               (ii) "register," "registered," and "registration" refer to a
registration  effected by preparing and filing a Registration Statement  or
Statements in compliance with the 1933 Act and pursuant to Rule  415  under
the  1933 Act or any successor rule providing for offering securities on  a
continuous  basis  ("Rule  415"),  and  the  declaration  or  ordering   of
effectiveness   of  such  Registration  Statement  by  the  United   States
Securities and Exchange Commission (the "SEC").

                (iii)     "Registrable Securities" means the Securities (as
defined in the Securities Purchase Agreement).

                (iv)  "Registration Period" means the period commencing  on
the  date  on  which  the  Registration Statement filed  pursuant  to  this
Agreement  is declared effective by the SEC and expiring on the  date  that
(A)  the  Investor  may  sell  all  of the Registrable  Securities  without
restriction pursuant to Rule 144(k) promulgated under the 1933 Act, or  (B)
the Investor has sold all of the Registrable Securities.

               (v)  "Registration Statement" means a registration statement
of the Company under the 1933 Act.

           b.    Capitalized  terms used herein and not  otherwise  defined
herein  shall  have  the respective meanings set forth  in  the  Securities
Purchase Agreement.

     2.   REGISTRATION RIGHTS.

     a. Mandatory Registration. The Company shall prepare and file with the
SEC  a  Registration Statement on Form S-3 (or, if such form is unavailable
for  such  a  registration, on such other form as is available for  such  a
registration)  covering  the  resale of the  Registrable  Securities.   The
Registration Statement (and each amendment or supplement thereto) shall  be
provided  to  the  Buyer and its counsel no later than five  business  days
prior  to  its filing or other submission, and shall be subject to approval
by  Buyer  and  its  counsel  within such five business  day  period,  such
approval  not  to  be  unreasonably withheld.  The  Company  will  use  its
reasonable efforts to cause such Registration Statement to become effective
as  promptly  as practicable but not later than 180 days after Closing,  as
defined   in  the  Securities  Purchase  Agreement  (the  "Effective   Date
Deadline")). The Company shall notify the Investor in writing by  facsimile
transmission  or  email notice that such Registration  Statement  has  been
declared effective by the SEC promptly following the Company becoming aware
of such declaration by the SEC.

            b.    Registration  Default.   If  the  Registration  Statement
covering  the  Registrable Securities required to be filed by  the  Company
pursuant  to  Section 2.a. is not declared effective  by  the  SEC  by  the
Effective  Date Deadline, then the Company shall make the payments  to  the
Investor as provided in the next sentence as liquidated damages and not  as
a  penalty.  The amount to be paid by the Company to the Investor shall  be
determined as of each Computation Date (as defined below), and such  amount
shall be equal to 2.5% (the "Liquidated Damage Rate") of the product of (i)
the  per  share  purchase  price  of the Securities  under  the  Securities
Purchase  Agreement and (ii) the number of shares of Registrable Securities
then  held by the Investor, for the period from the Effective Date Deadline
to the first Computation Date, and for each 30-day period of any subsequent
Computation Dates thereafter, in each case calculated on a pro  rata  basis
to  the  date on which the Registration Statement is declared effective  by
the SEC (the "Periodic Amount").  The full Periodic Amount shall be paid by
the Company to the Investor by wire transfer of immediately available funds
within  three  business days after each Computation Date or three  business
days  after  the  date  on  which the Registration  Statement  is  declared
effective by the SEC, whichever occurs earlier.

     As  used in this Section 2.b., "Computation Date" means the date which
is  30  days  after  the Effective Date Deadline and, if  the  Registration
Statement  to  be  filed by the Company pursuant to Section  2(a)  has  not
theretofore been declared effective by the SEC, each date which is 30  days
after the previous Computation Date until such Registration Statement is so
declared effective.

           c.   Piggy-Back Registrations.  If at any time prior to filing a
Registration  Statement under this Agreement, the Company shall  file  with
the  SEC  a  Registration Statement relating to an  offering  for  its  own
account  or  the account of others under the 1933 Act of any of its  equity
securities  (other than on Form S-4 or Form S-8 or their  then  equivalents
relating  to equity securities to be issued solely in connection  with  any
acquisition  of  any  entity or business or equity securities  issuable  in
connection with stock option or other employee benefit plans), the  Company
shall  send  to the Investor who is entitled to registration  rights  under
this  Section  2 written notice of the intended filing of such Registration
Statement and, if within twenty (20) days after receipt of such notice, the
Investor  shall  so request in writing, the Company shall include  in  such
Registration  Statement all or any part of the Registrable  Securities  the
Investor requests to be registered, except that if, in connection with  any
underwritten  public offering for the account of the Company  the  managing
underwriter(s) thereof shall impose a limitation on the number of shares of
Common  Stock which may be included in the Registration Statement  because,
in  such underwriter(s)' judgment, marketing or other factors dictate  such
limitation is necessary to facilitate public distribution, then the Company
shall be obligated to include in such Registration Statement only a limited
portion  of  the Registrable Securities with respect to which the  Investor
has  requested  inclusion  hereunder, such  portion  to  be  determined  as
hereinafter  provided;  provided that no portion of the  equity  securities
which  the  Company  is  offering for its own account  shall  be  excluded;
provided, further that the Company shall be entitled to exclude Registrable
Securities to the extent necessary to avoid breaching obligations  existing
prior to the date hereof to other stockholders of the Company.  Subject  to
the  foregoing,  the  Company shall not exclude any Registrable  Securities
unless  the  Company  has  first excluded all outstanding  securities,  the
holders  of which are not entitled to inclusion of such securities in  such
Registration Statement or are not entitled to pro rata inclusion  with  the
Registrable  Securities,  and,  after  giving  effect  to  the  immediately
preceding clause, any exclusion of Registrable Securities shall be made pro
rata  with  holders of other securities having the right  to  include  such
securities  in the Registration Statement other than holders of  securities
entitled to inclusion of their securities in such Registration Statement by
reason of demand registration rights.  The obligations of the Company under
this Section 2 may be waived by the Investor.  If an offering in connection
with  which the Investor is entitled to registration under this Section  2.
is  an underwritten offering, then if the Investor's Registrable Securities
are  included  in  such Registration Statement the Investor  shall,  unless
otherwise agreed by the Company, offer and sell such Registrable Securities
in an underwritten offering using the same underwriter or underwriters and,
subject  to  the  provisions  of this Agreement,  on  the  same  terms  and
conditions  as  other shares of Common Stock included in such  underwritten
offering.

     3.   OBLIGATIONS OF THE COMPANY.

     In connection with the registration of the Registrable Securities, the
Company shall have the following obligations:

    a. A Registration Statement filed pursuant to this Agreement (including
any  amendments or supplements thereto and prospectuses contained  therein)
shall  not contain any untrue statement of a material fact or omit to state
a  material  fact required to be stated therein, or necessary to  make  the
statements therein, in light of the circumstances in which they were  made,
not misleading.

       b.   The Company shall prepare and file with the SEC such amendments
(including  post-effective amendments) and supplements to the  Registration
Statement  and  the  prospectus used in connection  with  the  Registration
Statement  as may be necessary to keep the Registration Statement effective
at  all  times during the Registration Period, and, during the Registration
Period,  comply  with the provisions of the 1933 Act with  respect  to  the
disposition  of  all Registrable Securities of the Company covered  by  the
Registration  Statement  until  such  time  as  all  of  such   Registrable
Securities have been disposed of in accordance with the intended methods of
disposition  by  the  seller  or  sellers  thereof  as  set  forth  in  the
Registration Statement.

          c.   The Company shall furnish to the Investor if its Registrable
Securities are included in the Registration Statement and its legal counsel
(i)  promptly  after  the same is prepared and publicly distributed,  filed
with  the  SEC,  or  received by the Company, one copy of the  Registration
Statement  and  any  amendment  thereto, each  preliminary  prospectus  and
prospectus  and each amendment or supplement thereto, and (ii) such  number
of  copies  of  a prospectus, including a preliminary prospectus,  and  all
amendments and supplements thereto and such other documents as the Investor
may  reasonably  request  in order to facilitate  the  disposition  of  the
Registrable Securities owned by the Investor.

          d.          As  promptly as practicable after becoming  aware  of
such  event, the Company shall notify the Investor of the happening of  any
event,  of  which  the  Company has knowledge, as a  result  of  which  the
prospectus  included  in the Registration Statement,  as  then  in  effect,
includes  an  untrue statement of a material fact or omission  to  state  a
material  fact  required  to be stated therein or  necessary  to  make  the
statements  therein, in light of the circumstances under  which  they  were
made,  not  misleading,  and use its best efforts  promptly  to  prepare  a
supplement  or  amendment  to the Registration Statement  to  correct  such
untrue  statement or omission, and deliver such number of  copies  of  such
supplement  or  amendment  to the Investor as the Investor  may  reasonably
request.

          e.     The  Company  shall use its best efforts  to  prevent  the
issuance  of  any  stop  order or other suspension of  effectiveness  of  a
Registration  Statement, and, if such an order is  issued,  to  obtain  the
withdrawal of such order at the earliest possible moment and to notify  the
Investor  if the Investor holds Registrable Securities being sold  (or,  in
the  event of an underwritten offering, the managing underwriters)  of  the
issuance of such order and the resolution thereof.

    f.     The Company shall hold in confidence and not make any disclosure
of  information concerning the Investor provided to the Company unless  (i)
the  Company  determines  disclosure of such information  is  necessary  to
comply  with federal or state securities laws, (ii) the disclosure of  such
information is necessary to avoid or correct a misstatement or omission  in
any  Registration  Statement,  (iii) the release  of  such  information  is
ordered pursuant to a subpoena or other final, non-appealable order from  a
court  or  governmental  body  of  competent  jurisdiction,  or  (iv)  such
information has been made generally available to the public other  than  by
disclosure in violation of this or any other agreement.  The Company agrees
that it shall, upon learning that disclosure of such information concerning
the  Investor is sought in or by a court or governmental body of  competent
jurisdiction or through other means, give prompt notice to the Investor and
allow  the  Investor,  at the Investor's expense, to undertake  appropriate
action to prevent disclosure of, or to obtain a protective order for,  such
information.

          g.        The Company shall use its best efforts to cause all the
Registrable Securities covered by the Registration Statement to  be  listed
on  the  American Stock Exchange and on each additional national securities
exchange  on  which securities of the same class or series  issued  by  the
Company  are  then  listed,  if  any, if the listing  of  such  Registrable
Securities is then permitted under the rules of such exchange.

          h.      The Company shall cooperate with the Investor if it holds
Registrable  Securities and the managing underwriter  or  underwriters,  if
any,  to  facilitate  the timely preparation and delivery  of  certificates
representing  the  Registrable Securities to be  offered  pursuant  to  the
Registration  Statement  and  enable  such  certificates  to  be  in   such
denominations  or amounts, as the case may be, as the managing  underwriter
or  underwriters,  if  any,  or the Investor  may  reasonably  request  and
registered  in  such names as the managing underwriter or underwriters,  if
any, or the Investor may request.

     4.   OBLIGATIONS OF THE INVESTOR.

     In connection with the registration of the Registrable Securities, the
Investor shall have the following obligations:

  a. It shall be a condition precedent to the obligations of the Company to
complete  the  registration  of Registrable  Securities  pursuant  to  this
Agreement  that the Investor shall furnish to the Company such  information
regarding  itself, the Registrable Securities held by it and  the  intended
method of disposition of the Registrable Securities held by it as shall  be
reasonably   required  to  effect  the  registration  of  such  Registrable
Securities  and  shall  execute  such documents  in  connection  with  such
registration as the Company may reasonably request.  At least five (5) days
prior  to  the first anticipated filing date of the Registration Statement,
the  Company  shall  notify  the Investor of the  information  the  Company
requires  from  the  Investor if the Investor elects to  have  any  of  the
Investor's Registrable Securities included in the Registration Statement.

          b.   The Investor by the Investor's acceptance of the Registrable
Securities agrees to cooperate with the Company as reasonably requested  by
the   Company  in  connection  with  the  preparation  and  filing  of  the
Registration  Statement  hereunder, unless the Investor  has  notified  the
Company  in  writing  of  the Investor's election to  exclude  all  of  the
Investor's Registrable Securities from the Registration Statement.

   c. The Investor agrees that, upon receipt of any notice from the Company
of  the  happening of any event of the kind described in  Section  3(d)  or
3(e),  the Investor will immediately discontinue disposition of Registrable
Securities pursuant to the Registration Statement covering such Registrable
Securities  until the Investor's receipt of the copies of the  supplemented
or  amended  prospectus contemplated by Section 3(d) or  3(e)  and,  if  so
directed by the Company, the Investor shall deliver to the Company (at  the
expense  of  the  Company)  or  destroy  (and  deliver  to  the  Company  a
certificate of destruction) all copies in the Investor's possession, of the
prospectus  covering such Registrable Securities current  at  the  time  of
receipt of such notice.

          d.    The  Investor  may  not  participate  in  any  underwritten
registration  hereunder  unless  the  Investor  (i)  agrees  to  sell   the
Investor's Registrable Securities on the basis provided in any underwriting
arrangements,  (ii)  completes and executes all questionnaires,  powers  of
attorney,   indemnities,  underwriting  agreements  and   other   documents
reasonably  required  under  the  terms of such  underwriting  arrangements
(provided  that all such agreements and documents shall be in substantially
the  same  form  as  those executed by the Company and  the  other  selling
stockholders participating in such distribution), and (iii) agrees  to  pay
its pro rata share of all underwriting discounts and commissions.

          e.    The  Investor shall give notice to the Company when it  has
sold all of the Registrable Securities.

     5.   EXPENSES OF REGISTRATION.

      All  reasonable  expenses,  other  than  underwriting  discounts  and
commissions,  incurred  in  connection  with  registrations,   filings   or
qualifications pursuant to Sections 2 and 3, including, without limitation,
all  registration, listing and qualifications fees, printers and accounting
fees, the fees and disbursements of counsel for the Company, shall be borne
by  the  Company.   Notwithstanding the foregoing, the  Investor  shall  be
responsible  for  all  expenses, fees and disbursements  incurred  by  such
Investor or on such Investor's behalf, including all fees and disbursements
of counsel to the Investor.

     6.   INDEMNIFICATION.

     In the event any Registrable Securities are included in a Registration
Statement under this Agreement:

      a.   To the extent permitted by law, the Company will indemnify, hold
harmless and defend (i) the Investor who holds such Registrable Securities,
and  (ii) the directors, officers and each person who controls the Investor
within the meaning of the 1933 Act or the Securities Exchange Act of  1934,
as  amended  (the  "1934  Act"), if any, (each, an  "Indemnified  Person"),
against  any  losses, claims, damages, liabilities or  expenses  (joint  or
several)  (collectively, "Claims") to which any of them may become  subject
insofar  as  such Claims (or actions or proceedings, whether  commenced  or
threatened,  in respect thereof) arise out of or are based  upon:  (i)  any
untrue  statement  or  alleged untrue statement of a  material  fact  in  a
Registration  Statement  or the omission or alleged  omission  to  state  a
material  fact  therein  required to be stated or  necessary  to  make  the
statements  therein  not misleading, (ii) any untrue statement  or  alleged
untrue statement of a material fact contained in any preliminary prospectus
if  used  prior  to the effective date of such Registration  Statement,  or
contained  in  the  final prospectus (as amended or  supplemented,  if  the
Company files any amendment thereof or supplement thereto with the SEC)  or
the  omission  or  alleged  omission to state  therein  any  material  fact
necessary   to  make  the  statements  made  therein,  in  light   of   the
circumstances under which the statements therein were made, not misleading,
or (iii) any violation or alleged violation by the Company of the 1933 Act,
the  1934  Act,  any  other law, including, without limitation,  any  state
securities law, or any rule or regulation thereunder relating to the  offer
or  sale of the Registrable Securities pursuant to a Registration Statement
(the   matters   in  the  foregoing  clauses  (i)  through   (iii)   being,
collectively,  "Violations").  Subject to the  restrictions  set  forth  in
Section 6(d) with respect to the number of legal counsel, the Company shall
reimburse the Investor or controlling person, promptly as such expenses are
incurred  and  are due and payable, for any legal fees or other  reasonable
expenses incurred by them in connection with investigating or defending any
such Claim.  Notwithstanding anything to the contrary contained herein, the
indemnification  agreement contained in this Section 6(a):  (i)  shall  not
apply  to a Claim arising out of or based upon a Violation which occurs  in
reliance  upon and in conformity with information furnished in  writing  to
the  Company by any Indemnified Person expressly for use in connection with
the preparation of the Registration Statement or any such amendment thereof
or  supplement thereto, if such prospectus was timely made available by the
Company  pursuant  to  Section  3(c)  hereof;  (ii)  with  respect  to  any
preliminary  prospectus, shall not inure to the benefit of any such  person
from  whom  the  person asserting any such Claim purchased the  Registrable
Securities  that are the subject thereof (or to the benefit of  any  person
controlling  such person) if the untrue statement or omission  of  material
fact  contained  in  the  preliminary  prospectus  was  corrected  in   the
prospectus, as then amended or supplemented, if such prospectus was  timely
made  available by the Company pursuant to Section 3(c) hereof; (iii) shall
not  be  available to the extent such Claim is based on a  failure  of  the
Investor  to  deliver  or  to  cause to be delivered  the  prospectus  made
available  by  the  Company; and (iv) shall not apply to  amounts  paid  in
settlement  of any Claim if such settlement is effected without  the  prior
written  consent  of the Company, which consent shall not  be  unreasonably
withheld.   Such indemnity shall remain in full force and effect regardless
of  any  investigation made by or on behalf of the Indemnified  Person  and
shall  survive the transfer of the Registrable Securities by  the  Investor
pursuant to Section 9.

  b. In connection with any Registration Statement in which the Investor is
participating, the Investor agrees to indemnify, hold harmless and  defend,
to  the  same extent and in the same manner set forth in Section 6(a),  the
Company,  each  of  its  directors, each of  its  officers  who  signs  the
Registration  Statement,  each person, if any,  who  controls  the  Company
within the meaning of the 1933 Act or the 1934 Act, any underwriter and any
other stockholder selling securities pursuant to the Registration Statement
or  any  of  its  directors  or officers or any person  who  controls  such
stockholder or underwriter within the meaning of the 1933 Act or  the  1934
Act  (collectively and together with an indemnified Person, an "Indemnified
Party"),  against any Claim to which any of them may become subject,  under
the  1933 Act, the 1934 Act or otherwise, insofar as such Claim arises  out
of  or is based upon any Violation, in each case to the extent (and only to
the  extent) that such violation occurs in reliance upon and in  conformity
with written information furnished to the Company by the Investor expressly
for  use  in  connection with such Registration Statement or to the  extent
such Claim is based upon any violation or alleged violation by the Investor
of the 1933 Act, 1934 Act or any other law; and the Investor will reimburse
any  legal or other expenses reasonably incurred by them in connection with
investigating  or  defending any such Claim; provided,  however,  that  the
indemnity  agreement  contained in this Section 6(b)  shall  not  apply  to
amounts  paid  in  settlement of any Claim if such settlement  is  effected
without the prior written consent of the Investor, which consent shall  not
be  unreasonably  withheld; provided, further, however, that  the  Investor
shall be liable under this Section 6(b) for only that amount of a Claim  as
does not exceed the net proceeds to the Investor as a result of the sale of
Registrable  Securities  pursuant  to such  Registration  Statement.   Such
indemnity  shall  remain  in  full  force  and  effect  regardless  of  any
investigation  made  by or on behalf of such Indemnified  Party  and  shall
survive the transfer of the Registrable Securities by the Investor pursuant
to  Section  9. Notwithstanding anything to the contrary contained  herein,
the  indemnification agreement contained in this Section 6(b) with  respect
to  any  preliminary  prospectus shall not inure  to  the  benefit  of  any
Indemnified  Party  if the untrue statement or omission  of  material  fact
contained in the preliminary prospectus was corrected on a timely basis  in
the prospectus, as then amended or supplemented.

          c.    The  Company shall be entitled to receive indemnities  from
underwriters,  selling  brokers,  dealer managers  and  similar  securities
industry  professionals  participating in any  distribution,  to  the  same
extent  as  provided  above, with respect to information  such  persons  so
furnished  in  writing  by  such persons expressly  for  inclusion  in  the
Registration Statement.

   d.  Promptly after receipt by an Indemnified Person or Indemnified Party
under this Section 6 of notice of the commencement of any action (including
any  governmental  action), such Indemnified Person  or  Indemnified  Party
shall,  if  a  Claim in respect thereof is to made against any indemnifying
party  under  this Section 6, deliver to the indemnifying party  a  written
notice  of the commencement thereof, and the indemnifying party shall  have
the  right to participate in, and, to the extent the indemnifying party  so
desires,  jointly with any other indemnifying party similarly  noticed,  to
assume control of the defense thereof with counsel mutually satisfactory to
the indemnifying party and the Indemnified Person or the Indemnified Party,
as  the  case  may  be;  provided, however, that an Indemnified  Person  or
Indemnified Party shall have the right to retain its own counsel  with  the
fees  and  expenses  to  be  paid by the indemnifying  party,  if,  in  the
reasonable  opinion  of  counsel retained by the  indemnifying  party,  the
representation  by  such counsel of the Indemnified Person  or  Indemnified
Party  and  the indemnifying party would be inappropriate due to actual  or
potential   differing   interests  between  such  Indemnified   Person   or
Indemnified Party and any other party represented by such counsel  in  such
proceeding.   The  failure to deliver written notice  to  the  indemnifying
party within a reasonable time of the commencement of any such action shall
not  relieve  such indemnifying party of any liability to  the  Indemnified
Person or Indemnified Party under this Section 6, except to the extent that
the  indemnifying party is prejudiced in its ability to defend such action.
The  indemnification required by this Section 6 shall be made  by  periodic
payments  of  the amount thereof during the course of the investigation  or
defense, as such expense, loss, damage or liability is incurred and is  due
and payable.

     7.   CONTRIBUTION.

     To  the  extent  any  indemnification  by  an  indemnifying  party  is
prohibited  or limited by law, the indemnifying party agrees  to  make  the
maximum  contribution  with  respect to any  amounts  for  which  it  would
otherwise be liable under Section 6 to the fullest extent permitted by law;
provided,   however,  that  (i)  no  contribution  shall  be   made   under
circumstances   where   the  maker  would  not   have   been   liable   for
indemnification under the fault standards set forth in Section 6,  (ii)  no
seller  of  Registrable  Securities guilty of fraudulent  misrepresentation
(within the meaning of Section 11(f) of the 1933 Act) shall be entitled  to
contribution from any seller of Registrable Securities who was  not  guilty
of  such fraudulent misrepresentation, and (iii) contribution by any seller
of  Registrable Securities shall be limited in amount to the net amount  of
proceeds  received  by  such  seller from  the  sale  of  such  Registrable
Securities.

     8.   REPORTS UNDER THE 1934 ACT.

     With  a view to making available to the Investor the benefits of  Rule
144  promulgated under the 1933 Act or any other similar rule or regulation
of  the SEC that may at any time permit the Investor to sell securities  of
the  Company  to the public without registration ("Rule 144"), the  Company
agrees to:

          a.   make and keep public information available, as those terms are
understood and defined in Rule 144;

    b. file with the SEC in a timely manner all reports and other documents
required of the Company under the 1933 Act and the 1934 Act so long as  the
Company  remains  subject to such requirements (it  being  understood  that
nothing herein shall limit the Company's obligations under Section 4(c)  of
the Securities Purchase Agreement) and the filing of such reports and other
documents is required for the applicable provisions of Rule 144; and

      c.   furnish to the Investor so long as the Investor owns Registrable
Securities,  promptly upon request, (i) a written statement by the  Company
that  it has complied with the reporting requirements of Rule 144, the 1933
Act  and  the 1934 Act, (ii) a copy of the most recent annual or  quarterly
report of the Company and such other reports and documents so filed by  the
Company, and (iii) such other information as may be reasonably requested to
permit  the investors to sell such securities pursuant to Rule 144  without
registration.

     9.   ASSIGNMENT OF REGISTRATION RIGHTS.

     The  rights  to  have  the  Company  register  Registrable  Securities
pursuant  to  this  Agreement  shall be  automatically  assignable  by  the
Investors to any transferee of all or any portion of Registrable Securities
if:  (i) the Investor agrees in writing with the transferee or assignee  to
assign  such  rights,  and a copy of such agreement  is  furnished  to  the
Company promptly after such assignment, (ii) the Company is, promptly after
such  transfer or assignment, furnished with written notice of (a) the name
and  address  of  such transferee or assignee, and (b) the securities  with
respect  to  which  such  registration  rights  are  being  transferred  or
assigned,  (iii)  immediately following such  transfer  or  assignment  the
further  disposition of such securities by the transferee  or  assignee  is
restricted under the 1933 Act and applicable state securities laws, (iv) at
or  before the time the Company receives the written notice contemplated by
clause  (ii) of this sentence the transferee or assignee agrees in  writing
with the Company to be bound by all of the provisions contained herein, and
(v)  such  transfer shall have been made in accordance with the  applicable
requirements  of  the  Securities Purchase Agreement, and  applicable  law,
including federal and state securities laws.

     10.  AMENDMENT OF REGISTRATION RIGHTS.

     Provisions of this Agreement may be amended and the observance thereof
may  be  waived  (either generally or in a particular instance  and  either
retroactively  or  prospectively), only with the  written  consent  of  the
Company  and the Investor.  Any amendment or waiver effected in  accordance
with this Section 10 shall be binding upon the Investor and the Company.

     11.  MISCELLANEOUS.

   a. A person or entity is deemed to be a holder of Registrable Securities
whenever such person or entity owns of record such Registrable Securities.
If the Company receives conflicting instructions, notices or elections from
two or more persons or entities with respect to the same Registrable
Securities, the Company shall act upon the basis of instructions, notice or
election received from the registered owner of such Registrable Securities.

   b. Any notices required or permitted to be given under the terms of this
Agreement shall be sent by registered or certified mail, return receipt
requested, or delivered personally or by courier and shall be effective
five days after being placed in the mail, if mailed, or upon receipt, if
delivered personally or by courier, in each case addressed to a party.  The
addresses for such communications shall be as set forth in the Securities
Purchase Agreement or, in respect of any party, at such other address of
which such party shall notify the other parties in writing.

   c.   Failure of any party to exercise any right or remedy under this
Agreement  or  otherwise, or delay by a party in exercising such  right  or
remedy, shall not operate as a waiver thereof.

   d.        This Agreement shall be enforced, governed by and construed in
accordance  with the laws of the State of Florida applicable to  agreements
made and to be performed entirely within such State.  In the event that any
provision  of  this  Agreement  is  invalid  or  unenforceable  under   any
applicable  statute  or rule of law, then such provision  shall  be  deemed
inoperative  to  the  extent that it may conflict therewith  and  shall  be
deemed modified to conform with such statute or rule of law.  Any provision
hereof  which  may prove invalid or unenforceable under any law  shall  not
affect the validity or enforceability of any other provision hereof.

   e.   This Agreement and the Securities Purchase Agreement constitute the
entire  agreement  among  the parties hereto with respect  to  the  subject
matter hereof and thereof.  There are no restrictions, promises, warranties
or  undertakings,  other  than those set forth or referred  to  herein  and
therein.   This  Agreement and the Securities Purchase Agreement  supersede
all  prior  agreements  and understandings among the  parties  hereto  with
respect to the subject matter hereof and thereof.

   f. Subject to the requirements of Section 9 hereof, this Agreement shall
inure  to the benefit of and be binding upon the successors and assigns  of
each of the parties hereto.

   g.  The headings in this Agreement are for convenience of reference only
and shall not limit or otherwise affect the meaning hereof.

   h.   This Agreement may be executed in two or more identical
counterparts, each of which shall be deemed an original but all of which
shall constitute one and the same agreement. This Agreement, once executed
by a party, may be delivered to the other party hereto by facsimile
transmission of a copy of this Agreement bearing the signature of the party
so delivering this Agreement.

          i.    Each  party shall do and perform, or cause to be  done  and
performed, all such further acts and things, and shall execute and  deliver
all  such other agreements, certificates, instruments and documents, as the
other  party  may reasonably request in order to carry out the  intent  and
accomplish  the  purposes  of this Agreement and the  consummation  of  the
transactions contemplated hereby.

                   [SIGNATURES APPEAR ON FOLLOWING PAGE]

<PAGE>

     IN WITNESS WHEREOF, the parties have caused this Registration Rights
Agreement to be duly executed as of day and year first above written.

                              "Company"

                              GALAXY NUTRITIONAL FOODS, INC.

                              By:  /s/ Christopher J. New
                                   ----------------------
                                   Christopher J. New
                                   Chief Executive Officer

                              "Buyer"

                              RUGGIERI OF WINDERMERE
                              FAMILY LIMITED PARTNERSHIP

                              By:  J&S Ruggieri, LLC, as general partner

                              By:  /s/ John Ruggieri
                                   -----------------
                                   John Ruggieri, PresidentSECURITIES PURCHASE AGREEMENT

     THIS SECURITIES PURCHASE AGREEMENT (this "Agreement"), dated as of May
21,  2003,  by  and  between  Galaxy Nutritional Foods,  Inc.,  a  Delaware
corporation,  with  its principal place of business at 2441  Viscount  Row,
Orlando,  FL  32809 (the "Company"), and Ruggieri Financial  Pension  Plan,
with  its principal address at 9922 Lake Louise Drive, Windermere, FL 34786
(the "Buyer").

                          PRELIMINARY STATEMENTS

     A.   The Company has authorized the sale of a certain number of shares
of  the  Company's  common stock, par value $0.01 per  share  (the  "Common
Stock")  on  the  terms and subject to the conditions  set  forth  in  this
Agreement;

     B.   The Company and Buyer are executing and delivering this Agreement
in  reliance  upon the exemption from securities registration  afforded  by
Rule  506 under Regulation D ("Regulation D") as promulgated by the  United
States  Securities and Exchange Commission (the "SEC") under the Securities
Act of 1933, as amended (the "1933 Act");

      C.    Buyer wishes to purchase, in the amounts and upon the terms and
conditions stated in this Agreement, shares of Common Stock;

      D.    Upon  the closing of the transactions contemplated hereby,  the
parties hereto will execute and deliver a Registration Rights Agreement  in
substantially  the  form attached hereto as Exhibit  A  (the  "Registration
Rights  Agreement") pursuant to which the Company agrees to provide certain
registration  rights  under  the 1933 Act and  the  rules  and  regulations
promulgated thereunder, and applicable state securities laws; and

      E.   The Company intends to enter into other agreements substantially
in  the   form  of  this Agreement and Registration Rights  Agreement  with
certain  other buyers (the "Other Buyers") and expect to the  complete  the
sale  of  shares of Common Stock to them; however, the Buyer's  obligations
hereunder  are not expressly conditioned on the purchase by any or  all  of
the  Other Buyers of the Common Stock that they may agree to purchase  from
the Company.

      NOW,  THEREFORE,  in  consideration of the premises  and  the  mutual
covenants  contained herein and other good and valuable consideration,  the
receipt  and sufficiency of which are hereby acknowledged, the Company  and
the Buyer hereby agree as follows:

     1.   PREAMBLES; PURCHASE AND SALE OF COMMON STOCK; CLOSING

           a.    Preliminary Statements.  The above preliminary statements,
recitals, definitions, preamble and provisions are true and correct and are
incorporated herein as fully as if set forth herein.

           b.    Purchase  of  Common  Stock.  Subject  to  the  terms  and
conditions  set forth in this Agreement, the Company agrees  to  issue  and
sell to Buyer, and Buyer agrees to purchase from the Company such number of
shares  of  Common  Stock  (the "Securities") as  shall  be  determined  by
dividing the aggregate purchase price of $100,000 (the "Purchase Price") by
the  per share purchase price (with any fractional shares being rounded  up
to  the next whole share).  The per share purchase price shall be equal  to
the lesser of (x) 95% of the average of the closing bid price of the Common
Stock  on the Principal Market (as defined below) (as reported by Bloomberg
L.P.)  for the Trading Days (as defined below) occurring during the  thirty
(30) consecutive calendar days ending on the calendar day immediately prior
to  the  date  of  Closing  (as defined below), or  (y)  $1.80.   The  term
"Principal  Market" shall mean the American Stock Exchange,  the  New  York
Stock  Exchange, the NASDAQ National Market, or the NASDAQ SmallCap Market,
whichever is at the time the principal trading exchange or market  for  the
Common Stock, based upon share volume, or if the Common Stock is not traded
on  an  exchange or market, the OTC Bulletin Board or its successor (as  of
the  date hereof the Principal Market is the American Stock Exchange).  The
term  "Trading  Day" shall mean any day during which the  Common  Stock  is
traded  on  the Principal Market.  The consummation of the transaction  and
the  payment  of  the  Purchase Price shall occur at  Closing  (as  defined
below).

           c.    Escrow.   Within two (2) business days  following  Buyer's
execution of this Agreement, Buyer shall deliver to Gibralter Bank, F.S.B.,
as  escrow  agent ("Escrow Agent"), an amount equal to the  Purchase  Price
(the  "Escrow  Amount")  by wire transfer of immediately  available  United
States  Dollars in accordance with the instructions set forth in the Escrow
Agreement  dated as of the date hereof by and among the Company, Buyer  and
Escrow  Agent  (the  "Escrow  Agreement").  Escrow  Agent  shall  hold  and
disburse  the Escrow Amount in accordance with the terms and conditions  of
the Escrow Agreement.

           d.    The  Closing.  The closing ("Closing")  of  the  sale  and
purchase  of  the  Securities under this Agreement is contingent  upon  the
Company's repayment in full of the existing debt owed to (x) FINOVA Capital
Corporation  pursuant  to  that  certain Security  Agreement  dated  as  of
November  1,  1996,  as  amended,  and (y) FINOVA  Mezzanine  Capital  Inc.
pursuant to that certain Loan Agreement dated as of September 30, 1999,  as
amended (the "FINOVA Repayment").  The FINOVA Repayment shall be subject to
and  in  accordance  with the terms of the Escrow Agreement.   The  Closing
shall  take place at the offices of Baker & Hostetler LLP, 200 South Orange
Avenue, Suite 2300, SunTrust Center, Orlando, Florida 32801, as of the date
of  the  FINOVA  Repayment.  The consummation of the  transaction  and  the
payment of the Purchase Price shall occur at Closing, as follows:

                (i)   Release of Escrow Amount.  Escrow Agent shall release
the Escrow Amount as provided in the Escrow Agreement.

                (ii) Delivery of Stock Certificate(s).  Against payment  to
the  Company of the Purchase Price therefor, the Company shall  direct  its
stock  transfer  agent to deliver to Buyer one or more stock  certificates,
duly  executed on behalf of the Company, representing the Securities  being
purchased by Buyer, registered in the name of Buyer, such delivery to Buyer
to be made not later than five (5) business days after the Closing.

     2.   BUYER'S REPRESENTATIONS AND WARRANTIES

          Buyer represents and warrants to the Company that:

           a.    Investment Purpose.  The Securities are being acquired  by
Buyer  in  good  faith solely for its own account, for investment  purposes
only,  and are not being purchased for resale, resyndication, distribution,
subdivision  or  fractionalization  thereof;  Buyer  has  no  contract   or
arrangement with any person to sell, transfer or pledge to any  person  the
Securities or any part thereof, any interest therein or any rights thereto;
Buyer  has no present plans to enter into any such contract or arrangement;
and  Buyer understands that as a result it must bear the economic  risk  of
the investment for an indefinite period of time because the Securities have
not  been  registered under the 1933 Act, and, therefore,  cannot  be  sold
unless they are subsequently registered under the 1933 Act.

          b.     Accredited  Investor  Status.   Buyer  is  an  "accredited
investor" as that term is defined in Rule 501(a) of Regulation D.

          c.     Reliance  on  Exemptions.   Buyer  understands  that   the
Securities  are being offered and sold to it under the exemption  from  the
registration requirements of the United States federal and state securities
laws  and that the Company is relying upon the truth and accuracy  of,  and
Buyer's  compliance  with,  the  representations,  warranties,  agreements,
acknowledgments and understandings of Buyer set forth herein  in  order  to
determine the availability of such exemptions and the eligibility of  Buyer
to acquire the Securities.

          d.    Information.  Buyer understands and acknowledges that it is
purchasing  the Securities without being furnished any offering literature,
prospectus  or  other materials other than copies of the SEC Documents  (as
defined hereinbelow), that this transaction has not been scrutinized by the
SEC  or by any administrative agency charged with the administration of the
securities  laws  of  any  state, that all documents,  records  and  books,
pertaining to the Company, its business, finances and operations, and  this
investment  have  been  made  available to  Buyer,  and  its  advisors  and
representatives,  including  its  attorney,  its  accountant   and/or   its
purchaser  representative, and that the books and records  of  the  Company
will  be  available upon reasonable notice for inspection by  Buyer  during
reasonable  business hours at the Company's principal  place  of  business.
Buyer  and  its  advisors and representatives, including its attorney,  its
accountant  and/or its purchaser representative, if any, have reviewed  the
SEC  Documents  and been afforded the opportunity to ask questions  of  the
Company  and  have received complete and satisfactory answers to  any  such
inquiries.   Buyer  understands that its investment in  the  Securities  is
speculative and involves a high degree of risk of loss and that Buyer  must
be prepared to lose its entire investment in the Company.  Buyer has sought
such accounting, legal and tax advice, as it has considered necessary to an
informed  investment  decision  with respect  to  its  acquisition  of  the
Securities.  Buyer, or Buyer together with its purchaser representative, if
any,  have such knowledge and experience in financial and business  matters
that  it  and such representative are capable of evaluating the merits  and
risks  of  an  investment  in  the Securities and  of  making  an  informed
investment decision.

          e.    Governmental  Review.   Buyer understands  that  no  United
States  federal  or  state agency or any other government  or  governmental
agency  has approved or disapproved or passed on or made any recommendation
or  endorsement  of  the Securities or the fairness or suitability  of  the
investment  in  the Securities, nor have such authorities  passed  upon  or
endorsed  the merits of the offering of the Securities or the  accuracy  or
adequacy  of  any  of  the information provided by  the  Company  to  Buyer
regarding  the Company, the Securities or any other matter,  and  that  the
Company  is  relying  on  the truth and accuracy  of  the  representations,
declarations and warranties herein made by Buyer in offering the Securities
for sale to it without having first registered the same under the 1933 Act.

           f.    Transfer  or  Resale.  Buyer understands that,  except  as
provided in the Registration Rights Agreement, (i) the Securities have  not
been  and  are  not  being  registered under the  1933  Act  or  any  state
securities  laws,  and  may  not  be transferred  unless  (a)  subsequently
registered thereunder, or (b) Buyer shall have provided the Company with  a
statement  of  the circumstances surrounding the proposed  disposition  and
shall  have  delivered  to the Company an opinion  of  counsel,  reasonably
satisfactory in form, scope and substance to the Company, to the effect (1)
that  the  Securities to be sold or transferred may be sold or  transferred
pursuant  to  an exemption from such registration and (2) that  appropriate
action necessary for compliance with the 1933 Act has been taken; (ii)  any
sale of such Securities made in reliance on Rule 144 promulgated under  the
1933  Act  may be made only in accordance with the terms of said  Rule  and
further,  if  said  Rule is not applicable, any resale of  such  Securities
under  circumstances in which the seller (or the person  through  whom  the
sale  is  made) may be deemed to be an underwriter (as that term is defined
in the 1933 Act) may require compliance with some other exemption under the
1933  Act  or  the rules and regulations of the SEC thereunder;  and  (iii)
neither  the  Company  nor  any other person is  under  any  obligation  to
register such Securities under the 1933 Act or any state securities laws or
to comply with the terms and conditions of any exemption thereunder.

          g.    Legends.   Buyer  understands that the  stock  certificates
representing   the   Securities  shall  bear  a   restrictive   legend   in
substantially the following form (and a stop-transfer order shall be placed
against transfer of such stock certificates):

          THE   SECURITIES  REPRESENTED  HEREBY  HAVE  NOT   BEEN
          REGISTERED  UNDER  THE  SECURITIES  ACT  OF  1933,   AS
          AMENDED.    THE  SECURITIES  HAVE  BEEN  ACQUIRED   FOR
          INVESTMENT AND MAY NOT BE REOFFERED, SOLD, TRANSFERRED,
          PLEDGED, OR ASSIGNED IN THE ABSENCE OF (A) AN EFFECTIVE
          REGISTRATION  STATEMENT FOR THE SECURITIES  UNDER  SAID
          ACT AND THE STATE SECURITIES ACT OR BLUE SKY ACT OF ANY
          STATE HAVING JURISDICTION THEREOF, OR (B) AN OPINION OF
          COUNSEL,  REASONABLY SATISFACTORY IN  FORM,  SCOPE  AND
          SUBSTANCE  TO  THE  COMPANY, THAT REGISTRATION  IS  NOT
          REQUIRED UNDER SAID ACT OR THE SECURITIES ACT  OR  BLUE
          SKY  ACT  OF ANY STATE HAVING JURISDICTION WITH RESPECT
          THERETO.

          h.    Authorization;  Enforcement.  This  Agreement,  the  Escrow
Agreement and the Registration Rights Agreement have been duly and  validly
authorized,  executed and delivered on behalf of Buyer and  are  valid  and
binding  agreements of Buyer enforceable in accordance  with  their  terms,
subject  as  to  enforceability to general  principles  of  equity  and  to
bankruptcy,  insolvency, moratorium, and other similar laws  affecting  the
enforcement of creditors' rights generally.

          i.    Domicile.  If Buyer is an individual, Buyer is  a  resident
of,  or  if  Buyer  is an entity, Buyer's principal place  of  business  is
located in, the State of Florida.

          j.    Indemnification.  Buyer acknowledges that Buyer understands
the meaning and legal consequences of the representations and warranties in
this  Section  2, and that the Company has relied upon such representations
and  warranties, and Buyer hereby agrees to indemnify and hold harmless the
Company   and   its   officers,   directors,   shareholders,   agents   and
representatives  from  and  against any and all  claims,  demands,  losses,
damages,  expenses or liabilities (including attorneys'  fees)  due  to  or
arising   out   of,  directly  or  indirectly,  a  breach   of   any   such
representations or warranties.  Notwithstanding the foregoing, however,  no
representation, warranty, acknowledgment or agreement made herein by  Buyer
shall  in any manner be deemed to constitute a waiver of any rights granted
to such Buyer under federal or state securities laws.

          k.     Short  Position  and  Market  Purchases.   Buyer  is   not
purchasing the Securities for the purpose of covering any short position in
the Securities.

     3.   REPRESENTATIONS AND WARRANTIES OF THE COMPANY

          The Company represents and warrants to Buyer that:

          a.     Organization  and  Qualification.   The   Company   is   a
corporation duly organized and existing in good standing under the laws  of
the  State  of Delaware, and has the requisite corporate power to  own  its
properties  and  to  carry  on its business as now  being  conducted.   The
Company is duly qualified as a foreign corporation to do business and is in
good  standing  in every jurisdiction in which the nature of  the  business
conducted by it makes such qualification necessary and where the failure so
to  qualify  would  have  a  material adverse  effect  on  the  operations,
properties  or  financial condition of the Company  taken  as  a  whole  (a
"Material Adverse Effect").

          b.     Authorization;  Enforcement.   (i)  The  Company  has  the
requisite  corporate  power and authority to enter into  and  perform  this
Agreement and the Registration Rights Agreement and to issue the Securities
in  accordance  with the terms hereof and thereof, (ii) the  execution  and
delivery  of  this Agreement and the Registration Rights Agreement  by  the
Company and the consummation by it of the transactions contemplated  hereby
have  been  duly  authorized by the Company's Board  of  Directors  and  no
further consent or authorization of the Company, its Board of Directors, or
its  stockholders  is required, (iii) this Agreement and  the  Registration
Rights Agreement have been duly executed and delivered by the Company,  and
(iv)  this  Agreement and the Registration Rights Agreement constitute  the
valid  and  binding  obligations  of the Company  enforceable  against  the
Company in accordance with its terms, except as such enforceability may  be
limited  by  applicable bankruptcy, insolvency, reorganization, moratorium,
liquidation  or  similar  laws  relating to, or  affecting  generally,  the
enforcement  of  creditors'  rights and  remedies  or  by  other  equitable
principles of general application.

          c.    Capitalization.   As  of the date of  this  Agreement,  the
authorized  capital stock of the Company consists of (i) 85,000,000  shares
of Common Stock of which 12,761,685 shares were issued and outstanding, and
(ii)  1,000,000 shares of preferred stock, $.01 par value, of which 200,000
shares  have  been designated "Series A Preferred Stock," 57,384  of  which
were  issued  and  outstanding.  All of such outstanding shares  have  been
validly  issued and are fully paid and nonassessable.  Except as set  forth
in  the  SEC  Documents  (as defined herein) or in Schedule  3.c.  attached
hereto,  as  of  the  date of this Agreement (i) there are  no  outstanding
options,  warrants, scrip, rights to subscribe to, calls or commitments  of
any  character whatsoever relating to, or securities or rights  convertible
into,  any shares of capital stock of the Company, or arrangements by which
the  Company is or may become bound to issue additional shares  of  capital
stock  of  the  Company, and (ii) there are no agreements  or  arrangements
under  which the Company is obligated to register the sale of  any  of  its
securities  under  the  1933  Act other than  agreements  with  respect  to
securities which have been previously registered or are subject to  current
registration statements.

          d.    Issuance of Securities.  The Securities are duly authorized
and,  upon  issuance in accordance with the terms hereof, shall be  validly
issued,  fully paid and non-assessable, and free from all taxes, liens  and
charges with respect to the issue thereof.

          e.    No  Conflicts.  The execution, delivery and performance  of
this  Agreement by the Company and the consummation by the Company  of  the
transactions  contemplated hereby will not (i) result in any  violation  of
the Company's Certificate of Incorporation, as amended, as in effect on the
date hereof ("Certificate of Incorporation") or the Company's Bylaws, as in
effect  on  the  date  hereof (the "Bylaws")  or  (ii)  conflict  with,  or
constitute  a default (or an event which with notice or lapse  of  time  or
both  would  become  a  default) under, or give to  others  any  rights  of
termination,  amendment, acceleration or cancellation  of,  any  agreement,
indenture  or instrument to which the Company is a party, or  result  in  a
violation  of  any  law,  rule,  regulation,  order,  judgment  or   decree
(including federal and state securities laws and regulations) applicable to
the  Company or by which any property or asset of the Company is  bound  or
affected  (except  for such conflicts, defaults, terminations,  amendments,
accelerations,  cancellations and violations as would not, individually  or
in  the  aggregate, have a Material Adverse Effect).  The business  of  the
Company  is  not  being  conducted  in violation  of  any  law,  ordinance,
regulation of any governmental entity, except for possible violations which
either  singly  or in the aggregate do not have a Material Adverse  Effect.
Except  as  required under the 1933 Act and any applicable state securities
laws,  the Company is not required to obtain any consent, authorization  or
order  of,  or  make  any  filing  or  registration  with,  any  court   or
governmental agency in order for it to execute, deliver or perform  any  of
its obligations under this Agreement in accordance with the terms hereof.

          f.    Common Stock.  The Company has registered its Common  Stock
pursuant to Section 12(b) or (g) of the 1934 Act (as defined below) and  is
in full compliance with all reporting requirements of the 1934 Act, and the
Company is in compliance with all requirements for the continued listing or
quotation of its Common Stock, and such Common Stock is currently listed or
quoted  on,  the  Principal Market.  As of the date hereof,  the  Principal
Market  is the American Stock Exchange, and except as set forth in the  SEC
Documents,  the Company has not received any notice regarding, and  to  its
knowledge there is no threat of, the termination or discontinuance  of  the
eligibility of the Common Stock for such posting or listing.

          g.    SEC  Documents, Financial Statements.  During the Company's
last  two  (2) fiscal years, the Company has filed all reports,  schedules,
forms,  statements and other documents required to be filed by it with  the
SEC  pursuant to the reporting requirements of the Securities Exchange  Act
of  1934, as amended (the "1934 Act") (all of the foregoing filed prior  to
the  date hereof and all exhibits included therein and financial statements
and  schedules thereto and documents (other than exhibits) incorporated  by
reference  therein,  being  hereinafter referred  to  herein  as  the  "SEC
Documents").   The Company has delivered to Buyer true and complete  copies
of  the SEC Documents, except for such exhibits, schedules and incorporated
documents.   As  of  their respective dates, subject to,  with  respect  to
certain  SEC  Documents, the filing of an amendment to such SEC  Documents,
the  SEC  Documents complied in all material respects with the requirements
of  the  1934  Act  and  the rules and regulations of the  SEC  promulgated
thereunder  applicable to the SEC Documents, and none of the SEC Documents,
at the time they were filed with the SEC, contained any untrue statement of
a  material fact or omitted to state a material fact required to be  stated
therein  or necessary in order to make the statements therein, in light  of
the  circumstances under which they were made, not misleading.  As of their
respective dates, the financial statements of the Company included  in  the
SEC  Documents complied as to form in all material respects with applicable
accounting requirements and the published rules and regulations of the  SEC
with  respect  thereto.  Such financial statements have  been  prepared  in
accordance  with  generally  accepted accounting  principles,  consistently
applied,  during  the  periods involved (except (i)  as  may  be  otherwise
indicated in such financial statements or the notes thereto, or (ii) in the
case  of  unaudited  interim statements, to the  extent  they  may  exclude
footnotes or may be condensed or summary statements) and fairly present  in
all material respects the financial position of the Company as of the dates
thereof  and  the results of its operations and cash flows for the  periods
then  ended (subject, in the case of unaudited statements, to normal  year-
end  audit  adjustments). No other information provided by or on behalf  of
the  Company  to  Buyer and referred to in Section 2(d) of  this  Agreement
contains  any  untrue statement of a material fact or omits  to  state  any
material  fact  necessary in order to make the statements therein,  in  the
light  of  the  circumstance  under  which  they  are  or  were  made,  not
misleading.

          h.   No Material Adverse Change.  Since December 31, 2002, there
has not been any material adverse change in the Company's business, results
of operations, or financial condition, other than changes resulting from
general economic conditions or general economic trends, except as reflected
in the SEC Documents filed at least five (5) days prior to the date hereof.

          i.    Absence  of  Litigation. Except as  disclosed  in  the  SEC
Documents,  there is no action, suit, proceeding, inquiry or  investigation
before  or  by any court, public board or body pending or, to the knowledge
of  the  Company,  threatened against the Company, wherein  an  unfavorable
decision, ruling or finding would have a Material Adverse Effect  or  which
would  adversely affect the validity or enforceability of, or the authority
or  ability of the Company to perform its obligations under, this Agreement
or any of the documents contemplated herein.

     4.   COVENANTS

          a.   Form D.  The Company agrees to file a Form D with respect to
the Securities as required under Regulation D and to provide a copy thereof
to Buyer promptly after such filing.

          b.    Reporting Status.  Until the earlier of (i) the date as  of
which  Buyer  may sell all the Securities without restriction  pursuant  to
Rule 144(k) promulgated under the 1933 Act, or (ii) the date on which Buyer
has sold all of the Securities, the Company shall file all reports required
to  be  filed with the SEC pursuant to the 1934 Act, and the Company  shall
not  terminate its status as an issuer required to file reports  under  the
1934 Act even if the 1934 Act or the rules and regulations thereunder would
permit  such termination.  Buyer shall give notice to the Company  when  it
has sold all of the Securities.

          c.     Listing  of  Securities.   The  Company  shall  cause  the
Securities to be listed on the Principal Market prior to the Closing.

     5.   TRANSFER AGENT INSTRUCTIONS

          Buyer  acknowledges  that the Securities  shall  be  "restricted"
securities,  that the Stock Certificates shall bear the restrictive  legend
specified  in  Section  2(g)  of  this Agreement,  and  that  stop-transfer
instructions  have  been given by the Company to its  transfer  agent  with
respect  to the Securities.  If Buyer provides the Company with an  opinion
of  counsel,  reasonably satisfactory in form, scope and substance  to  the
Company, that registration of a resale by Buyer of any of the Securities is
not  required under the 1933 Act or any applicable state securities or blue
sky  laws, the Company shall permit the transfer and promptly instruct  its
transfer agent to issue one or more certificates in such name and  in  such
denominations as specified by Buyer.

     6.   TERMINATION

          a.   Termination.  This Agreement may be terminated as follows:

               (i)  at any time prior to Closing, by mutual written consent
of all of the parties to this Agreement, whereupon Buyer and the Company
shall deliver to Escrow Agent joint written instructions to release the
Escrow Amount to Buyer;

                (ii)  at  any  time after July 15, 2003, by Buyer,  if  the
Closing has not been effected on or prior to such date and if Buyer is  not
then in breach of any term of this Agreement, pursuant to written notice by
Buyer to the Company and the Escrow Agent; or

                (iii)      at any time after July 15, 2003, by the Company,
if  the  Closing  has not been effected on or prior to such  date,  if  the
Company  is  not then in breach of any term of this Agreement, pursuant  to
written notice by the Company to Buyer and the Escrow Agent.

           b.    Effect  of  Termination. All obligations  of  the  parties
hereunder  shall  cease  upon any termination  pursuant  to  Section  6.a.,
provided, however, that the provisions of Sections 6.c. and 7 hereof  shall
survive any termination of this Agreement.

           c.    Treatment  of  Escrow Amount Upon  Termination.   If  this
Agreement is terminated pursuant to its terms, the Escrow Amount  shall  be
treated as set forth in the Escrow Agreement.

     7.   GOVERNING LAW; MISCELLANEOUS

          a.    Governing  Law.  This Agreement shall be  governed  by  and
interpreted  in  accordance with the laws of the State of  Florida  without
regard to the principles of conflict of laws.

          b.   Counterparts.  This Agreement may be executed in two or more
identical counterparts, all of which shall be considered one and  the  same
agreement and shall become effective when counterparts have been signed  by
each  party  and delivered to the other party.  In the event any  signature
page is delivered by facsimile transmission, the party using such means  of
delivery shall cause three (3) additional original executed signature pages
to  be physically delivered to the other party within five (5) days of  the
execution and delivery hereof.

          c.     Headings.   The  headings  of  this  Agreement   are   for
convenience  of  reference  and shall not  form  part  of,  or  affect  the
interpretation of, this Agreement.

          d.    Severability.  If any provision of this Agreement shall  be
invalid   or   unenforceable  in  any  jurisdiction,  such  invalidity   or
unenforceability  shall not affect the validity or  enforceability  of  the
remainder  of  this  Agreement or the validity or  enforceability  of  this
Agreement in any other jurisdiction.

          e.    Entire  Agreement;  Amendments.   This  Agreement  and  the
instruments  referenced  herein contain the  entire  understanding  of  the
parties with respect to the matters covered herein and therein and,  except
as  specifically set forth herein or therein, neither the Company  nor  any
Buyer  makes  any  representation, warranty, covenant or  undertaking  with
respect  to such matters.  No provision of this Agreement may be waived  or
amended  other than by an instrument in writing signed by the party  to  be
charged with enforcement.

          f.    Notices.   Any notices required or permitted  to  be  given
under  the  terms  of  this Agreement shall be sent by  mail  or  delivered
personally  or  by  courier and shall be effective five  days  after  being
placed  in  the  mail, if mailed, certified or registered,  return  receipt
requested, or upon receipt, if delivered personally or by courier, in  each
case addressed to a party.  The addresses for such communications shall be:

If to the Company:  Galaxy Nutritional Foods, Inc.
               2441 Viscount Row
               Orlando, FL 32809
               Telephone: (407) 855-5500
               Telecopy: (407) 855-1099
               Attention: Mr. Christopher J. New

With a copy to:          Baker & Hostetler LLP
               200 South Orange Avenue
               Orlando, FL 32801
               Telephone: (407) 649-4000
               Telecopy: (407) 841-0168
               Attention: Jeffrey E. Decker, Esq.

If to Buyer:        Ruggieri Financial Pension Plan
               9922 Lake Louise Drive
               Windermere, FL 34786
               Telephone:  (407) 876-6789
               Telecopy:  (407) 876-5261
               Attention:  Mr. John Ruggieri

Each  party  shall  provide notice to the other  party  of  any  change  in
address.

          g.    Successors  and Assigns.  This Agreement shall  be  binding
upon  and  inure  to  the benefit of the parties and their  successors  and
assigns.  Neither the Company nor Buyer shall assign this Agreement or  any
rights  or obligations hereunder without the prior written consent  of  the
other  (which consent may be withheld for any reason in the sole discretion
of the party from whom consent is sought).

          h.    Third Party Beneficiaries.  This Agreement is intended  for
the benefit of the parties hereto and their respective permitted successors
and assigns, and is not for the benefit of, nor may any provision hereof be
enforced by, any other person.

          i.    Survival.  The representations and warranties of the  Buyer
and  the Company contained in Sections 2 and 3, respectively, shall survive
the  Closing for a period of one (1) year thereafter, provided however that
the  representations and warranties of Buyer contained  in  Sections  2.a.,
2.b. and 2.h. shall survive the Closing indefinitely.

          k.    Publicity.  The Company and Buyer shall have the  right  to
approve  before issuance any press releases or any other public  statements
with  respect  to the transactions contemplated hereby; provided,  however,
that the Company shall be entitled, without the prior approval of Buyer, to
make  any  press release with respect to such transactions as  the  Company
determines is required by applicable law and regulations.

          l.    Further  Assurances.  Each party shall do and  perform,  or
cause to be done and performed, all such further acts and things, and shall
execute  and  deliver all such other agreements, certificates,  instruments
and  documents, as the other party may reasonably request in order to carry
out  the  intent  and  accomplish the purposes of this  Agreement  and  the
consummation of the transactions contemplated hereby.

           m.    Expenses.  Subject to a maximum of $5,000.00, the  Company
shall  pay the reasonable fees, expenses and disbursements of Buyer's legal
counsel   arising  in  connection  with  the  negotiation,  execution   and
consummation  of  this  Agreement, the Escrow Agreement,  the  Registration
Rights  Agreement and the agreements and transactions contemplated by  such
agreements.

                   [SIGNATURES APPEAR ON FOLLOWING PAGE]

<PAGE>

     IN WITNESS WHEREOF, Buyer and the Company have caused this Securities
Purchase Agreement to be duly executed as of the date first written above.

                              "Company"

                              GALAXY NUTRITIONAL FOODS, INC.

                              By:  /s/ Christopher J. New
                                   ----------------------
                                   Christopher J. New
                                   Chief Executive Officer

                              "Buyer"

                              RUGGIERI FINANCIAL PENSION PLAN

                              By:  /s/ John Ruggieri
                                   -----------------
                                   John Ruggieri, Administrator

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00052-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00052-of-00352.parquet"}]]