Document:

GALAXY NUTRITIONAL FOODS COMPANY, INC.

                      Non-Qualified Stock Option Agreement

         Galaxy  Nutritional  Foods Company,  Inc., a Delaware  corporation (the
"Company"),  hereby  grants  as of the 17th day of  August,  2006,  to Angelo S.
Morini (the  "Optionee"),  an option to purchase a maximum of 100,000  shares of
its Common Stock,  $.01 par value (the "Common  Stock"),  at the price of $ 0.44
per share,  which is 110% of the closing  market  price (the  "Option"),  on the
following terms and conditions:

         1. Grant as Non-Qualified Stock Option; Other Options. The Option shall
be treated for federal income tax purposes as a  non-qualified  stock option and
NOT as an incentive stock option under Section 422A of the Internal Revenue Code
of 1986, as amended (the "Code"). The option is in addition to any other options
heretofore or hereafter granted to the Optionee by the Company,  but a duplicate
original of this instrument shall not affect the grant of another option.

         2. Extent of Option. The Option is vested immediately. The Option (or a
portion  hereof) may be  exercised  up to and  including  the date which is five
years from the date the Option is granted.

         3. Termination of Directorship. If the Optionee ceases to be a director
of the Company,  other than by reason of death at a time when the Optionee holds
the Option,  the Optionee may exercise  such Option  within the original term of
the Option, as to all or any of the shares fully vested at the time.

         4. Death.   If the  Optionee  dies while  serving as a director  of the
Company, the Option may be exercised, to the extent of the number of shares with
respect to which the Optionee  could have exercised it on the date of his death,
by his estate, personal representative or beneficiary who acquires the Option by
will or by the  laws of  descent  and  distribution,  at any  time  prior to the
Option's expiration date specified in this Agreement.

         5.  Partial  Exercise.  Exercise  of the Option up to the extent  above
stated  may be made in part at any time and from time to time  within  the above
limits, except that the Option may not be exercised for a fraction of a share.

                                       1
<PAGE>

         6. Payment Price. The option price is payable, upon exercise, in United
States  dollars and may be paid in cash or by check,  or any  combination of the
foregoing, equal in amount to the option price.

         7. Method of Exercising Option.  Subject to the terms and conditions of
this Agreement, the Option may be exercised by written notice to the Company, at
the principal  executive office of the Company, or to such transfer agent as the
Company  shall  designate.  Such notice shall state the election to exercise the
Option and the number of shares in  respect of which it is being  exercised  and
shall be signed by the person or persons so exercising  the Option.  Such notice
shall be accompanied  by payment of the full purchase price of such shares,  and
the Company shall deliver a certificate or certificates representing such shares
as soon as practicable  after the notice shall be received.  The  certificate or
certificates  for the shares as to which the Option shall have been so exercised
shall be registered in the name of the person or persons  exercising  the Option
and shall be  delivered  as provided  above to or upon the written  order of the
person or  persons  exercising  the  Option.  In the event the  Option  shall be
exercised, pursuant to Section 4 hereof, by any person or persons other than the
Optionee,  such notice shall be accompanied by appropriate proof of the right of
such person to exercise the Option.  All shares that shall be purchased upon the
exercise   of  the  Option  as   provided   herein   shall  be  fully  paid  and
non-assessable.

         8. Option  Not  Transferable.    The  Option  is  not  transferable  or
assignable except by will or by the laws of descent and distribution. During the
Optionee's lifetime, only the Optionee can exercise the Option.

         9. No Obligation to Exercise  Option.  The grant and  acceptance of the
Option imposes no obligation on the Optionee to exercise it.

         10. No Rights as  Stockholder  until  Exercise.  The Optionee shall not
have rights as a stockholder  with respect to shares  subject to this  Agreement
until a stock certificate  therefor has been issued to the Optionee and is fully
paid for. Except as is expressly  provided below with respect to certain changes
in the capitalization of the Company,  no adjustment shall be made for dividends
or  similar  rights  for which the  record  date is prior to the date such stock
certificate is issued.

         11. Capital Changes and Business Successions.

                  (a) The existence of the Option  granted  hereunder  shall not
affect in any way the right or power of the Board of  Directors  of the  Company
(the  "Board") or the  stockholders  of the Company to make or authorize (i) any
adjustment,  recapitalization,  reorganization  or other change in the Company's
capital  structure  or its  business,  (ii) any merger or  consolidation  of the
Company  or any of its  affiliates,  (iii) any  issuance  of bonds,  debentures,
preferred or prior preference stock ahead of or affecting the Common Stock, (iv)
the dissolution or liquidation of the Company or any of its affiliates,  (v) any
sale or  transfer of all or part of the assets or business of the Company or any
of its affiliates or (vi) any other corporate act or proceeding.

                                       2
<PAGE>

                  (b) Subject to the provisions of Section  11(d),  in the event
of any such change in the capital structure or business of the Company by reason
of any  stock  split,  reverse  stock  split,  stock  dividend,  combination  or
reclassification of shares, recapitalization,  merger, consolidation,  spin off,
reorganization,  partial or  complete  liquidation,  acquisition  of property or
shares, separation,  issuance of rights or warrants to purchase any Common Stock
or securities convertible into Common Stock, any sale or transfer of all or part
of the Company's assets or business,  disaffiliation,  any special cash dividend
or any other  corporate  transaction or event having an effect similar to any of
the foregoing and effected without receipt of consideration by the Company, then
the aggregate number and kind of shares that thereafter may be issued hereunder,
the  number and kind of shares to be issued  hereunder  and the  purchase  price
thereof  shall be  appropriately  adjusted  consistent  with such change in such
manner  as the Board may deem  equitable  to  prevent  substantial  dilution  or
enlargement of the rights  granted to, or available  for, the Optionee,  and any
such  adjustment  determined by the Board in good faith shall be final,  binding
and  conclusive  on the Company and the  Optionee  and their  respective  heirs,
executors, administrators,  successors and assigns. In connection with any event
described in this paragraph, the Board may provide, in its sole discretion,  (i)
for the  cancellation  of the Option and payment in cash and/or  other  property
having  an  aggregate  value  equal to the  value  of such  Option  in  exchange
therefor, (ii) the substitution of other property for the shares of Common Stock
subject  to the  Option;  and  (iii)  in  connection  with  any  disaffiliation,
arranging for the  assumption of the Option,  or  replacement of the Option with
new awards based on other property or other securities by the affected affiliate
or division or by the entity that controls such affiliate or division  following
such disaffiliation (as well as any corresponding adjustments to the Option that
remain  based  upon  Company  securities).  Except as  provided  hereunder,  the
Optionee  shall have no rights by reason of any  issuance  by the Company of any
class or securities  convertible  into stock of any class,  any  subdivision  or
consolidation  of  shares  of stock  of any  class,  the  payment  of any  stock
dividend, any other increase or decrease in the number of shares of stock of any
class,  any sale or transfer of all or part of the Company's  assets or business
or any other change affecting the Company's capital structure or business.

                  (c) Except as otherwise  determined  by the Board,  fractional
shares of Common Stock  resulting from any adjustment in the Option  pursuant to
Section 11(a) or Section 11(b) shall be aggregated until, and eliminated at, the
time of exercise by rounding-down and any remaining  fractional shares of Common
Stock shall be settled in cash.  Notice of any adjustment  shall be given by the
Board to the Optionee, and such adjustment (whether or not such notice is given)
shall be effective and binding for all purposes hereunder.

                                       3
<PAGE>

                  (d) In the event of (x) a merger or consolidation in which the
Company is not the surviving  entity,  (y) any  transaction  that results in the
acquisition of substantially all of the Company's  outstanding Common Stock by a
single  person or  entity or by a group of  persons  and/or  entities  acting in
concert,  or (z)  the  sale  or  transfer  of all  or  substantially  all of the
Company's  assets (all of the  foregoing  being  referred to as an  "Acquisition
Event"), then the Board, in its sole discretion,  may terminate the Option if it
is outstanding as of the date of the Acquisition  Event, by delivering notice of
termination  to  the  Optionee  at  least  20  days  prior  to the  date  of the
Acquisition  Event, in which case, during the period from the date on which such
notice of termination  is delivered to the date of the  Acquisition  Event,  the
Optionee  shall have the right to exercise in full the Option then  outstanding,
but any such exercise shall be contingent on the consummation of the Acquisition
Event,  and,  provided  that, if the  Acquisition  Event does not occur within a
specified period after giving such notice for any reason whatsoever,  the notice
and exercise  pursuant  thereto shall be null and void. If an Acquisition  Event
occurs but the Board does not terminate the outstanding  Awards pursuant to this
paragraph, then the provisions of Section 11(b) shall apply.

         12. Provision of Documentation to Optionee.  By signing this Agreement,
 the Optionee acknowledges receipt of a copy of this Agreement.

         13. Governing Law.  This Agreement shall be governed by and interpreted
in accordance with the internal laws of the State of Delaware.

         14.  Expiration.  This Option shall expire at 5:00 p.m. Orlando time on
August 17, 2011.  Whether or not surrendered to the Company by the holder,  this
Option shall be deemed cancelled upon expiration hereof.

         IN WITNESS  WHEREOF  the  Company  and the  Optionee  have  caused this
instrument to be executed as of August 17, 2006.

OPTIONEE                                         GALAXY NUTRITIONAL FOODS, INC.

/s/ Angelo S. Morini                             By: /s/ Michael E. Broll
------------------------                             -------------------------
Angelo S. Morini                                     Michael E. Broll
                                                     Chief Executive Officer

                                       4LOGISTICS
        MANAGEMENT AGREEMENT

      BETWEEN

      ESSENTIALLY
        YOURS INDUSTRIES (HONG KONG) LIMITED 

      and
        

      AIOGLOBAL
        LOGISTICS LTD. 

      Dated
        September 01, 2005 and Amended as of May 1, 2006

      

      
        	1.0  	
                Recitals

              

      

      

      
        	1.1  	
                This
                  Agreement and all attachments (called the “Agreement”) is made by
                  Essentially
                  Yours Industries (Hong Kong) Limited (“EYI”)
                  and AlO
                  Global Logistics Ltd.
                  (“AIO”).

              

      

      

      
        	1.2  	
                AIO
                  is a logistics agent that provides international freight, warehousing
                  and
                  distribution services as appointed by
                  EYI,

              

      

      

      
        	1.3  	
                EYI
                  is engaged in the business of manufacturing, trading and marketing
                  majorly
                  water filter system, parts and nutritional products
                  worldwide,

              

      

      

      
        	1.4  	
                EYI
                  desires to obtain from AIO and AIO desires to provide EYI freight
                  and
                  logistics services,

              

      

      

      
        	1.5  	
                For
                  the mutual benefit of the parties, EYI and AIO enter into this
                  Agreement
                  with the understanding that it shall be implemented in and subject
                  to the
                  condition of this Agreement.

              

      

      

      FOR
        AND
        IN CONSIDERATION of the mutual covenants contained in this Agreement, EYI
        AND
        AIO agree as follows:

      

      
        	2.0  	
                Agreement
                  Term

              

      

      

      
        	2.1  	
                The
                  period during which EYI may issue Authorization(s) under this Agreement
                  (Agreement Period) shall commence Sept 1, 2005 (Effective Date)
                  and end on
                  Aug 31, 2007 (Expiration Date) unless otherwise extended by mutual
                  written
                  consent by both parties.

              

      

      

      
        	3.0  	
                Scope
                  of Services

              

      

      

      
        	3.1  	
                AIO
                  shall provide for EYI the following service as and when required
                  whichever
                  in the mode of Air Freight, Ocean Freight, Logistics and/or Distribution
                  services:

              

      

      
        	3.1.1  	
                the
                  warehouse area for EYI to store their products in HK and
                  China.

              

      

      
        	3.1.2  	
                keeping
                  inventory records for EYI.

              

      

      
        	3.1.3  	
                picks
                  and packs, sorting and labeling service in HK and
                  China.

              

      

      
        	3.1.4  	
                distribution
                  service locally in HK and China and overseas where AIO has their
                  representations and agents.

              

      

      
        	3.1.5  	
                export
                  of EYI shipments from HK and China to any parts of the
                  world.

              

      

      
        	3.1.6  	
                import
                  of EYI shipments from overseas into HK and
                  China.

              

      

       

      
        
          
          

        

        
          -P.1-

          
            

          

        

        
          
          

        

      

       

      
        	3.1.7  	
                weekly
                  inventory, product, and lot number reports to be emailed to
                  EYI.

              

      

      
        	3.1.8  	
                annual
                  inventory count to be overseen by EYI
                  auditors.

              

      

      
        	3.1.9  	
                AIO
                  will act in a timely manner to review and report on all inbound
                  product
                  shipment

              

      

      
        	3.1.10  	
                quality
                  control which will entail a short information sheet which is to
                  be
                  provided to EYI in a timely manner

              

      

      

      
        	4.0  	
                Performance
                  Criteria

              

      

      

      
        	4.1  	
                AIO
                  will communicate closely with EYI Logistics personnel for any shipment
                  status within 24 hours after shipment departed or
                  arrived.

              

      

      
        	4.2  	
                AIO
                  will keep EYI informed when inventory or stocks fall into an agreed
                  low-level which special attention needs to be taken care of
                  immediately.

              

      

       

      
        	5.0  	
                Invoices,
                  Pricings and Payment

              

      

      

      
        	5.1  	
                AIO
                  shall combine the billings for all destinations and/or any other
                  services
                  provided to EYI (or other key personnel or department as instructed
                  by EYI
                  in written). 

              

      

      

      
        	5.2  	
                AIO
                  shall prepare and issue invoices in U.S. Dollars (USD) bi-monthly
                  in
                  accordance with the charges and fees set forth in Exhibit A- Pricing
                  for
                  the Warehousing, Distribution and Freight Services and other Service
                  Quotations approved by EYI from time to time during the billing
                  period.

              

      

      

      
        	5.3  	
                AIO
                  will forward the related invoices / statements by email to EYI
                  for
                  verifying and the original invoice will be mailed to EYI upon request.
                  

              

      

      

      
        	5.4  	
                EYI
                  shall pay AIO’s invoices for the service rendered within fifteen (15)
                  calendar days of invoice date.

              

      

      

      
        	5.5  	
                AIO
                  agrees to refund a 10% Rebate to EYI on Services involving warehousing,
                  distribution and transportation for any business introduced by
                  EYI to AIO.
                  This Rebate will only be made when all related due outstanding
                  has been
                  fully settled to AIO. The Rebate will not include amount on duties
                  or
                  taxes or Government charges which will be per outlay, if any. However,
                  the
                  rebate is not applicable to EYI’s own business. Cancelled /s/ DO /s/
                  KC

              

      

      

      
        	5.6  	
                Either
                  party upon discovering an invoice discrepancy or error shall promptly
                  notify the other party in writing. Upon such notification, EYI
                  and AIO
                  shall use all reasonable efforts to resolve any discrepancy within
                  15 days
                  of notification of such discrepancy. Disputed amounts shall not
                  be deemed
                  past due until the discrepancy is resolved. However, all items
                  without
                  disputes must be settled in time.

              

      

      

      
        	5.7  	
                In
                  consideration of the continuous surge of fuel and security surcharges,
                  AIO
                  is allowed to make adjustments when there is official notice from
                  airlines
                  or ocean carriers or transportation associations. However, a seven
                  (7)
                  days advance notice will be provided to EYI for the changes.

              

      

       

      
        
          
          

        

        
          -P.2-

          
            

          

        

        
          
          

        

      

       

      
        	5.8  	
                In
                  situation when fuel and security surcharges come down at any time,
                  AIO is
                  obliged to make the same adjustment on their rates offered to EYI
                  upon
                  official notice from airlines or ocean carriers is available.
                  

              

      

       

      
        	6.0  	
                Independent
                  Contractor Relationship

              

      

      

      
        	6.1  	
                AIO,
                  including its agents and employees, is an independent contractor
                  and not
                  an employee of EYI. AIO is NOT authorized to represent and EYI
                  disclaims
                  any liability from such misrepresentation during AIO performance
                  of the
                  Services.

              

      

      

      
        	7.0  	
                Notices

              

      

      

      
        	7.1  	
                All
                  notices, requests, approvals, demands, and other written communication
                  made pursuant to this Agreement shall be given in writing, in the
                  English
                  language and deemed properly given when delivered in person, or
                  by AIO
                  delivery service addressed as
                  follows:

              

      

      

      If
        to
        EYI:               Essentially
        Yours Industries (Hong Kong) Limited

      7865
        Edmonds Street, Burnaby, B.C., Canada, V3N 1B9 

      

      If
        to
        AIO:             
AIO
        Global Logistics Ltd.

      Unit
        D,
        11/F Garment Centre, 576-586 Castle Peak Road

      Cheung
        Sha Wan, Kowloon, Hong Kong

      

      Or
        to
        such other address as may be specified from time to time in writing by the
        applicable party.

      

      
        	8.0  	
                Termination
                  for Convenience

              

      

      

      
        	8.1  	
                Both
                  parties may terminate this Agreement, at any time, by giving written
                  notice to the other party at the address specified in Article 7
                  - Notices,
                  No less than Ninety (90) days prior to the effective date of termination
                  set forth in the notice.

              

      

      

      
        	9.0  	
                Force
                  Majeure

              

      

      

      
        	9.1  	
                Neither
                  party shall be liable for failure to perform any of its obligations
                  under
                  this Agreement during any period in which such party cannot perform
                  due to
                  matters beyond their control, including but not limited to, strike,
                  fire,
                  flood, or other natural disaster, war, airlines / carriers’ embargo, or
                  riot provided that the party so delayed immediately notifies the
                  other
                  party of such delay. The party so effected shall be excused from
                  such
                  performance to the extent to such prevention, restriction or interference;
                  provided, however, that the party so affected shall take all reasonable
                  steps with due diligence to avoid or remove such cause of nonperformance
                  and shall resume performance hereunder with dispatch whenever such
                  causes
                  are removed.

              

      

       

      
        
          
          

        

        
          -P.3-

          
            

          

        

        
          
          

        

         

      

      
        	10.0  	
                Confidential
                  Information

              

      

      

      
        	10.1  	
                The
                  parties shall both conform the provisions of the Mutual Non-Disclosure
                  Agreement. The provisions of this Agreement shall apply to all
                  information
                  regardless of whether ownership of the information is in the disclosing
                  party, or any subsidiary or affiliate thereof, or in any third
                  party from
                  whom the disclosing party has acquired the right to sue such Confidential
                  Information.

              

      

      

      
        	10.2  	
                The
                  obligation of confidentiality shall survive expiration or earlier
                  termination of this Agreement by three (3)
                  years.

              

      

       

      
        	11.0  	
                Liabilities
                  of Claims for Damage and
                  Missing

              

      

      

      
        	11.1  	
                AIO
                  agrees to carry at all times insurance of the kinds listed
                  below:

              

      

      
        	-  	
                Employees
                  Compensation coverage on all AIO’s
                  staff

              

      

      
        	-  	
                General
                  warehouse insurance coverage at the maximum of USD10,000 per claim
                  case.
                  

              

      

      

      
        	11.2  	
                Any
                  claim against AIO must be in writing and delivered to the Company
                  within
                  14 days upon shipment arrived
                  destinations.

              

      

      

      
        	11.3  	
                Any
                  claim of damage or missing in international transportation is according
                  to
                  the ocean carriers / airlines’ standard terms and conditions and in any
                  case the maximum liability for AIO (on behalf of the ocean carriers
                  /
                  airlines) is limited to USD20.00/kg, subject to proof of value
                  by relevant
                  invoice and packing list. Any incidental, indirect consequential
                  or
                  economic loss or damage (including but not limited to loss of market,
                  profit, revenue, business or goodwill etc.) will not be
                  compensated.

              

      

      

      
        	11.4  	
                For
                  claims of damage or missing in domestic transportation and warehouse
                  under
                  AIO’s custody within HK and China, the maximum liability for AIO will
                  be
                  USD5.00/kg or maximum USD10,000 per claim case, subject to proof
                  of value
                  by relevant invoice and packing list. Any incidental, indirect
                  consequential or economic loss or damage (including but not limited
                  to
                  loss of market, profit, revenue, business or goodwill etc.) will
                  not be
                  compensated.

              

      

      

      
        	11.5  	
                EYI
                  agrees to buy additional Insurance Coverage at their own expenses
                  to
                  protect their goods and belongings under the custody of AIO warehousing
                  or
                  airlines or ocean carriers or during domestic transportation, when
                  necessary.

              

      

      

      
        	12.0  	
                Assignment

              

      

       

      
        	12.1  	
                Either
                  party may not, whether by operation of law of otherwise, assign
                  or
                  otherwise transfer any of its rights under this Agreement without
                  the
                  other party’s prior written consent which consent shall not be
                  unreasonably withheld and any attempted assignment or transfer,
                  regardless
                  of the means, without such consent shall be null and void. AIO
                  may assign
                  or subcontract any portion of the scope of work provided hereunder
                  with
                  prior written consent of EYI, which consent may not be unreasonably
                  withheld or delayed.

              

      

       

      
        
          
          

        

        
          -P.4-

          
            

          

        

        
          
          

        

         

      

      
        	13.0  	
                Disputes

              

      

      

      
        	13.1  	
                Any
                  dispute arising under this Agreement which is not resolved by EYI
                  and AIO
                  shall be decided by a court in HK Special Administration Region.
                  Pending
                  settlement of the final decision by the court, AIO shall proceed
                  diligently with the performance of the Agreement in accordance
                  with EYI’s
                  direction.

              

      

      

      
        	14.0  	
                Controlling
                  Law

              

      

      

      
        	14.1  	
                This
                  Agreement shall be interpreted and constructed in accordance with
                  the laws
                  of the HK Special Administration
                  Region.

              

      

       

      This
        Amended Agreement constitutes the entire Agreement between the parties and
        was
        amended on May 1, 2006 to reflect AIO's name change, all other terms and
        conditions remain in effect. All prior agreements, negotiations, dealings
        and
        understandings, whether written or oral, regarding the subject matter of
        this
        Agreement are superseded.

       

      IN
        WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
        executed under seal and delivered as of the date first written
        above.

       

      
        	
                Essentially Yours Industries
                  

                (Hong Kong) Limited 

              	 	 	
                AIO
                  Global Logistics Ltd. 

              
	
                 

                 

              	 	 	 
	/s/
                Dori O'Neill	 	 	/s/
                Kaze Cheng
	
                
By (Authorized
                Signature)	 	 	
                
By (Authorized
                Signature)
	 	 	 	 
	DORI
                O'NEILL	 	 	KAZE
                CHENG
	 

                
Print
                Name	 	 	 

                
Print
                Name
	 	 	 	 
	PRESIDENT
                / CEO	 	 	GENERAL
                MANAGER
	 

                

                Title

              	 	 	 

                

                Title

              
	 	 	 	 
	 

                
Date	 	 	
                May
                  1, 2006

                
                  

                

                Date

              

      

         

      
        
          
          

        

        
          -P.5-

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