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 David Lipka, whose address is 19 Oakwood
Circle, Roslyn, NY 11576 (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"

                              /s/ David Lipka
                              ----------------------
                              David LipkaMASTER DISTRIBUTION AND LICENSE AGREEMENT
                 -----------------------------------------

This Agreement is effective as of May 22, 2003,

by and between

Galaxy Nutritional Foods, Inc., a corporation organized and existing  under
the  laws  of Delaware having its office at 2441 Viscount Row, Orlando  FL,
32809, U.S.A. (hereinafter "Galaxy") and Fromageries Bel S.A, a corporation
organized  and existing under the laws of France having its main office  at
16, Boulevard Malesherbes 75008, Paris, France (hereinafter "BEL"),

Whereas  Galaxy has developed a range of healthy cheese and  dairy  related
and  dairy  alternative  products and is the  exclusive  owner  of  certain
property rights, Know how (as hereinafter defined) and technology, relating
to  the manufacture, marketing and sale of these products and has the right
to grant license and distribution rights therefor.

Whereas BEL has developed an international range of cheese and other  dairy
products  and  desires to obtain an exclusive license from Galaxy   (i)  to
distribute and sell the Products (as hereinafter defined) in the  Territory
(as hereinafter defined) and (ii)  to manufacture the Products for sale  in
the Territory upon the exercise of an option to so manufacture.

Whereas  Galaxy has agreed to grant BEL the license for the use of  certain
related confidential information, Know how and technology, all for  use  in
the  sale,  distribution and manufacturing of the Products in the Territory
under and subject to the terms contained herein.

Whereas  Galaxy is willing to supply the Products to BEL and BEL is willing
to purchase the Products from Galaxy to the extent BEL is not manufacturing
such Products itself under the Manufacturing and License Agreement.

Whereas Galaxy is willing to appoint BEL its exclusive distributor  of  the
Products  in  the  Territory (as hereinafter defined) and  BEL  desires  to
market,  distribute  and sell directly or indirectly the  Products  in  the
Territory.

Whereas  Galaxy  desires  to grant to BEL and BEL desires  to  accept  from
Galaxy  an  option  to  manufacture  some  or  all  of  the  Products   for
distribution and sale in the Territory  under the Manufacturing and License
Agreement.

Now,  therefore,  in consideration of premises herein contained,  and  such
other  valuable  consideration, the receipt and  sufficiency  of  which  is
acknowledged by the parties, the parties hereto agree as follows:

1.  DEFINITIONS

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

1.1Products
The term "Products" means all of  Galaxy's healthy cheese and dairy-related
and  dairy  alternative food products. A full listing of  Galaxy's  current
Products is provided in Exhibit 1 of this Agreement. The Products will also
include  some  or  all  of the healthy cheese and dairy-related  and  dairy
alternative food products developed by Galaxy after the execution  of  this
Agreement,  including  any  products, if  any,  specifically  developed  or
adapted for BEL, as mutually agreed by the parties. The parties acknowledge
and  agree that the Ultra Smoothie products made with Tropicana juices, and
other  products made by Galaxy under licenses of any third party shall  not
be included in Products.  Galaxy reserves the right to change or modify any
of  the  Products, and to discontinue the manufacturing of any Product  any
time  BEL is not ordering on the basis of the Minimum Production Quantities
from Galaxy as discussed in Exhibit 4 of this Agreement.

1.2.    Trademarks
The  term "Trademarks" means the trademarks,  brands names, service  marks,
trade  names,  trade dress and logos and all registrations related  thereto
owned by BEL under which the Products shall be marketed and distributed.

Galaxy's  logo "Galaxy Nutritional Foods Smart Choice Cheese Product"  (the
"Logo"), which represents the concept of "smart choice technology,"  is  to
be used on a principal display panel for all Products sold pursuant to this
Agreement.  This Logo  shall also be used and displayed on each  and  every
package  of  the Products according to the scheme set forth  in  Exhibit  2
attached hereto.

1.3.    Territory
The term "Territory" means
(i)      European  Union  states consisting of Austria,  Belgium,  Denmark,
   Finland,  France,  Germany,  Greece,  Ireland,  Italy,  Luxembourg,  the
   Netherlands, Portugal, Spain, Sweden, and the United Kingdom;

(ii)Other  European  countries  consisting  of  Albania,  Belarus,  Bosnia-
   Herzegovina,  Bulgaria,  Croatia, Republic of  Cyprus,  Czech  Republic,
   Estonia,  Hungary, Iceland, Latvia, Liechtenstein, Lithuania, Macedonia,
   Malta, Slovenia, Switzerland, Turkey, Ukraine, Yugoslavia, and Norway; and

(iii)     Microstates  and territories consisting of Andorra,  Monaco,  San
   Marino, Vatican, and Channel Islands CGB,

and  any  such  additional countries as may be agreed upon by both  parties
from  time  to  time, upon request of BEL. BEL will be invited  to  propose
additional  territorial rights, which proposal may be granted  in  Galaxy's
reasonable discretion, however; at this time, Galaxy is not granting to BEL
a  right  of  first  refusal  to sell Products in  any  country,  state  or
territory outside the territories noted in items (i), (ii) and (iii) above.

1.4.    Affiliate
The term "Affiliate: of, or a Person "Affiliated" with, a specified Person,
is   a   Person   that  directly,  or  indirectly  through  one   or   more
intermediaries, controls, or is controlled by, or is under  common  control
with,  the  Person specified. For the purpose of this definition, "control"
of a Person shall mean the possession, directly or indirectly, of the power
to  direct  or  cause the direction of its management or policies,  whether
through  the ownership of voting securities, by contract or otherwise.  For
purposes  of this definition, direct or indirect control of at least  fifty
(50%) of the voting stock or other ownership interest of a Person or direct
or  indirect  power to direct or cause management to elect  or  appoint  at
least  fifty percent (50%) of the members of the corporate governing bodies
shall conclusively establish control. For purposes of this definition,  the
term "Person" shall mean  any individual, sole proprietorship, partnership,
limited   liability   company,   joint   venture,   trust,   unincorporated
organization,   association,  corporation,  institution,   public   benefit
corporation,  entity or government (whether federal, state,  county,  city,
municipal or otherwise, including, without limitation, any instrumentality,
division, agency, body or department thereof)..

1.5.    Patents
The  term  "Patents  and patent applications" means  the  patents,   patent
applications,   patent  disclosures and inventions  and  all  registrations
related thereto now or hereinafter owned by Galaxy or BEL relating  to  the
Products sold in the Territory.

1.6.    Know How
The  term  "Know  how"  means  all secret and  confidential  data  and  all
technical  and  manufacturing  information,  knowledge  research,  studies,
development, process, formulae, technology, formulations, sourcing  of  raw
materials, manufacturing information, quality insurance specifications, and
generally all intellectual and industrial property rights, including patent
applications and patents, the rights to which are owned by Galaxy, relating
to the registration, manufacturing, packaging, and sale of the Products and
all related documentation.

2.  GRANT OF RIGHTS

Galaxy  hereby grants to BEL, subject to the terms and conditions  of  this
Agreement,  the  exclusive  right and license, with  full  right  to  grant
sublicenses  to  BEL's  Affiliates, to use  the  Know-How  and  to  market,
promote,  distribute  and  sell  the  Products  throughout  the  Territory.
Further, Galaxy hereby grants to BEL the right to appoint one or more  sub-
distributors  of  the  Products within the Territory,  provided  that  such
persons or entities are disclosed to Galaxy in writing in advance.

This  license  does not authorize BEL to, and BEL shall  not,  directly  or
indirectly, export to or to distribute or sell the Products in any part  of
the  world  other  than  the Territory, unless specifically  authorized  by
Galaxy in writing.

During  the  term  of  this  Agreement, BEL and its  Affiliates  shall  not
distribute, market, sell or manufacture any Products in the same categories
as  the  Products,  except  to  the extent BEL  is  already  manufacturing,
distributing, marketing or selling such Products.

During  the term of this Agreement, Galaxy shall not negotiate or take  any
other  steps towards the grant or the promise to grant any right to  anyone
other  than  BEL  through letter of intent, option agreement  or  agreement
concerning,  within  the  Territory,  (i)  the  distribution,  selling   or
manufacture of the Products or (ii) the use of the Know-How.

3. APPOINTMENT OF DISTRIBUTOR

3.1.Galaxy  hereby appoints BEL and BEL hereby accepts such appointment  as
   Galaxy's sole and exclusive distributor of the Products in the Territory.
   This  sole and exclusive appointment means that Galaxy shall appoint  no
   other distributor or representative of the Products within the Territory
   and that Galaxy shall not sell the Products directly into the Territory or
   to  anyone  Galaxy  reaonably believes will sell the Products  into  the
   Territory.

3.2.BEL  and  its  Affiliates shall use best efforts  to  promote,  market,
   distribute  and sell the Products in the Territory, either directly,  or
   through its Affiliates, or with respect to countries where no BEL Affiliate
   exists, through third party distributors, which third party distributors
   are reasonably acceptable to Galaxy.

3.3.BEL  shall  use its best efforts to ensure that each of its  Affiliates
   and distributors that promotes, markets, distributes and sells the Products
   in  the  Territories  shall  comply with those duties,  obligations  and
   warranties stated in this Agreement applicable to BEL.

3.4.BEL  shall  use  its best efforts to ensure that any agreement  between
   BEL  and  BEL's Affiliates, and/or distributors in connection  with  the
   promotion, marketing, distribution and sale of Products in the Territories,
   shall be fully consistent with the terms of this Agreement.

3.5.Nothing  in  this Agreement shall be construed as giving  BEL  and  its
   Affiliates, any right to use  the Know how or any other information  and
   data  received  hereunder for  purposes other than those of  developing,
   marketing,  distributing,  promoting and selling  the  Products  in  the
   Territory except to the extent otherwise provided in Section 5 hereof.

3.6.BEL may communicate to its customers information commonly requested  on
   Product  specifications and formulae / ingredient  list  to  the  extent
   required by applicable law, agreements to which  BEL or its Affiliates are
   obligated or industry customs; provided in all instances that BEL  fully
   complies with the confidentiality obligations in Section 17.3.

3.7.Subject to Section 9.2 hereof, Galaxy shall sell to BEL, and BEL  shall
   purchase and accept only from Galaxy, at the prices and upon the terms and
   conditions provided in this Agreement, such amount of the Products as BEL
   may request from time to time.

3.8.Galaxy  agrees  not to sell, authorize or appoint others  to  sell  the
   Products in the Territory by any means (including, but not limited to, by
   electronic commerce via the Internet) and agrees not to knowingly sell any
   of the Products, directly or indirectly, to anyone other than to BEL or its
   Affiliates  or distributors for delivery or resale within the Territory,
   including any sales to anyone outside the Territory for delivery or resale
   within the Territory (including, but not limited to, electronic commerce
   via the Internet). Notwithstanding the foregoing, Galaxy shall be permitted
   to sell to its existing distributors within the Territory until such time
   as those distributors may be transitioned to BEL through the mutual efforts
   of Galaxy and BEL.

3.9.Galaxy  agrees to immediately notify BEL if any of the Products require
   special or other licenses to export and to update such information promptly
   upon changes, additions or deletions to such requirements.

3.10.     BEL  agrees to immediately notify Galaxy if any of  the  Products
   being sold by BEL require special labelling for lawful and safe use, sale
   and consumption within the pertinent country or countries of the Territory
   where  the Product will be shipped, sold, used or consumed and to update
   such information upon changes, additions or deletions to such requirements.

4.  TERM

This  Agreement shall become effective on the date first written above  and
shall remain in effect for a period of ten (10) years (the "Initial Term"),
provided that neither party has given the other party written notice of its
intent  to  terminate this Agreement pursuant to Sections 5 or 17  of  this
Agreement  ("Termination  Notice"). Subsequent to  the  expiration  of  the
Initial  Term, this Agreement shall be renewed automatically for successive
renewal terms of three (3) years each, which renewal will terminate in  the
event either party provides the other party with a Termination Notice.

5.  MANUFACTURING LICENSE RIGHTS

Galaxy hereby grants to BEL an exclusive option upon the exercise of  which
from  time  to  time  by BEL, BEL, in addition to its  rights  to  promote,
market, distribute and sell the Products in the Territory pursuant to  this
Agreement,  shall  be permitted to also manufacture  one  or  more  of  the
Products as BEL may designate for promotion, marketing, distribution and/or
sale  in the Territory, including Products improvements conceived, proposed
or  developed by Galaxy. Said option shall be exclusive to BEL and  may  be
exercised by BEL an unlimited number of times at any time and from time  to
time  during the Initial Term and any subsequent renewal terms with respect
to  any or all of the Products.  Notwithstanding anything stated herein  to
the  contrary  and as an exception to the term of the option stated  herein
and  as  an  exception to the Initial Term, within sixty (60) days  of  the
fourth  anniversary  of this Agreement, the parties shall  elect,  by  each
notifying  the  other  in  writing  of its  selection,  in  its  reasonable
discretion, to proceed in one of the following manners:

    (i)    the  parties may mutually agree to continue operating under  the
terms  of  this Agreement, including retaining BEL's option to  manufacture
certain  or  all of the Products from time to time; provided that  at  that
time  the  parties develop and commit to certain performance  metrics  (the
"Performance  Metrics") developed in good faith and in accordance  with  an
analysis  by  the  parties of the relevant markets, to be  updated  by  the
parties annually, with respect to any Products Galaxy manufactures for  BEL
to  distribute in the Territory, the failure of which to attain will permit
either  party  to  terminate  this  Agreement  but  not  BEL's  option   to
manufacture  set forth above (such Performance Metrics to be  developed  by
the  Designee (as defined in section 5) in the event the parties are unable
to agree);

    (ii)   the  parties may mutually agree to terminate this  Agreement  in
accordance with the provisions of Section 17.1.1 below;

    (iii) the parties may mutually agree to convert this Agreement into the
Manufacturing  and License Agreement (defined below) with  a  corresponding
exercise  by  BEL  of  its  option  to manufacture  whatever  Products  BEL
designates;   provided  that  conversion  of  this   Agreement   into   the
Manufacturing  and License Agreement shall not foreclose BEL's  ability  to
designate in the future other Products it desires to manufacture; or

    (iv)  either BEL or Galaxy may elect to terminate this Agreement in the
event  that either party in its sole discretion is not satisfied  with  the
performance  of the other party or with the amount of sales or income  from
the  sales  of  the Products hereunder; provided, however, that  if  Galaxy
elects  to terminate this Agreement, BEL shall be given the opportunity  to
first exercise its option to designate which Products, if any, it wishes to
manufacture and distribute itself and if BEL elects to manufacture  any  of
the  Products at this time it will enter into the Manufacturing and License
Agreement with Galaxy and shall have no further ability to designate  other
Products  in the future to so manufacture beyond those designated  pursuant
to this clause (iv).

Furthermore, in addition to BEL's ability to exercise the option from  time
to  time during the term of this Agreement or at the fourth anniversary  of
this  Agreement  as  provided above,  upon a change of control  of  Galaxy,
notice  of  which shall be given by Galaxy to BEL within one (1)  month  of
such  change,  BEL  may exercise its option right and this  Agreement  will
automatically convert into and be controlled and governed by the  terms  of
the Manufacturing and License Agreement.

In  the  event that either party elects to terminate this Agreement  by  so
selecting  to  terminate  under  item (ii),  (iii),  or  (iv)  above,  such
termination  shall  be  effective one year from the  date  notice  of  such
termination is provided to the other party.

If  BEL  exercises such option to manufacture or have manufactured  all  or
some  of the  Products, Galaxy shall within sixty (60) days of the exercise
of  such option, communicate and grant to BEL the right to use the Know-How
to  manufacture the Products for sale and distribution in the Territory for
which  the  option is exercised, in conformity with the specifications  and
the   technical   documentation  communicated  by  Galaxy   to   BEL.   The
Manufacturing and License Agreement will provide that Galaxy will undertake
to  inform  BEL  about  any change or modification  of  the  Know-How.   In
addition,  during  the  term of the Manufacturing  and  License  Agreement,
Galaxy shall disclose to BEL any modifications or improvements to the Know-
How made by Galaxy, namely to allow compliance with local regulations.   In
addition,  Galaxy  will agree to reasonably accept any recommended  changes
BEL recommends to the Know How.

The  terms  and conditions which shall govern such license of manufacturing
shall  be  set  forth  in a manufacturing and license agreement  which  the
parties hereto will undertake to negotiate in good faith during the  period
between  the  execution of this Agreement and the exercise  of  the  option
described in this Section 5 (the "Manufacturing and License Agreement"). If
BEL  exercises such option with respect to some or all of the Products, and
enters  into  the  Manufacturing and License Agreement  with  Galaxy,  this
Agreement  shall terminate.  Notwithstanding this termination, however,  it
is understood and expressly acknowledged by the parties that BEL's exercise
of its option to manufacture some or all of the Products shall not preclude
BEL's  continued right to distribute those Products that BEL does not elect
to  manufacture in a manner consistent with BEL's performance under and the
terms and conditions of this Agreement to the date of such election.

Subsequent  to  BEL's  exercise of its option to  manufacture  any  of  the
Products,  and in lieu of the applicable Minimum Production Obligation  for
such Product or Products and associated payments therefor, BEL shall pay to
Galaxy  a royalty of three to five percent (3% to 5%) (the "Royalty  Rate")
of  the Aggregate Net Sales (as hereinafter defined) by BEL of the Products
manufactured  by  BEL for distribution and sale in the Territory;  provided
that  aggregate annual royalties paid by BEL to Galaxy shall, in no  event,
be less than certain minimum royalties (the "Annual Minimum Royalty").  The
Annual  Minimum  Royalty shall be allocated among each  of  the  countries,
states or territories in the Territory (the "Per Country Allocation").  The
Royalty Rate applicable to each Product, the Annual Minimum Royalty and the
Per Country Allocations shall be set forth in the Manufacturing and License
Agreement  or  schedules thereto. The schedules to  the  Manufacturing  and
License Agreement may or may not be subject to revision on an annual  basis
by  the  parties as provided by the terms of the Manufacturing and  License
Agreement.

To  the  exent  BEL  has  failed, by an anniversary of  this  Agreement  (a
"Royalty Payment Date"), to make royalty payments to Galaxy in an aggregate
amount  for the applicable year equal to or in excess of the Annual Minimum
Royalty,  BEL shall make a payment to Galaxy within 30 days of the  Royalty
Payment Date (the "Late Payment Date") in an amount equal to the difference
between the Annual Minimum Royalty and the aggregate royalty payments  made
by  BEL  to Galaxy for that year (the "Minimum Royalty Shortfall"). If  BEL
fails  to pay to Galaxy the Minimum Royalty Shortfall, if due, by the  Late
Payment  Date,  BEL  shall provide notice to Galaxy of  which  of  the  Per
Country  Allocations  BEL has paid and, with respect  to  those  countries,
states  or  territories represented by unpaid Per Country  Allocations,  at
Galaxy's  reasonable discretion, BEL may lose its exclusive right  to  use,
market   and  distribute  the  Product(s)  in  the  countries,  states   or
territories represented by such unpaid Per Country Allocations and  thereby
have  such  distribution rights on a non-exclusive basis and  Galaxy  shall
have  the  rights with respect to such countries, states or territories  to
appoint another distributor or representative and to sell direct. BEL shall
lose  such  exclusive  rights  after  receiving  three  months  notice  via
registered  mail from Galaxy indicating Galaxy's exercise of its discretion
to have BEL surrender such exclusive rights. BEL shall retain its exclusive
distribution rights with respect to those countries, states and territories
for which it has complied with such Per Country Allocations.

BEL  shall make written reports to Galaxy within sixty (60) days after  the
last  day of each calendar year.  The reports shall state (i) a description
and  calculation of the total aggregate sales, which shall include any  and
all  income,  receipts,  revenues or other  consideration  from  the  sale,
exchange  or transfer of Products manufactured by BEL ("Aggregate  Sales"),
less  any  discounts, returns, rebates, sales tax, excise tax, value  added
tax,  freight,  insurance or other out-of-pocket expenses of Products  paid
from or to be paid from Aggregate Sales of Products ("Aggregate Net Sales")
sold  in  the  preceding  year in the Territory,  and  (ii)  all  royalties
accrued,  for  the past year.  Within fifteen (15) days of BEL's  providing
such  report  to  Galaxy, BEL shall remit to Galaxy  in  U.S.  dollars  the
royalties due under the Manufacturing and License Agreement at the  Royalty
Rate  on  the Products included in such report.  BEL shall keep  sufficient
records  of  the  sales of the Products to enable an independent  certified
accountant, designated by Galaxy and reasonably acceptable to BEL, to audit
BEL's  records of such sales at any reasonable time during normal  business
hours.  Any such audit shall be preceded by thirty (30) days written notice
from  Galaxy to BEL. Such audit shall be conducted at Galaxy's sole expense
unless such audit reveals a discrepancy in favor of Galaxy of five per cent
(5%) or more in the Gross Royalty Payment due (without regard to offsets or
credits  which may be claimed against such sum), in which case the  expense
of such audit shall be borne by BEL. The term "Gross Royalty Payment" means
the Aggregate Net Sales multiplied by the Royalty Rate.  BEL shall withhold
from  such  royalties and pay to the French tax authorities  or  any  other
corresponding  tax  authority  all  withholding  taxes  required   by   law
applicable  to royalties payable to Galaxy.   BEL shall retain the  ability
to  purchase Products from Galaxy for resale whether or not BEL has elected
to  manufacture  that  particular Product itself and,  to  the  extent  BEL
distributes  or sells Products in the Territory which were manufactured  by
Galaxy instead of BEL, BEL's payment to Galaxy for such products shall  not
be  governed by these royalty provisions but by the provisions set forth in
Section 9 hereof.

The   royalty  provisions  provided  above  shall  be  set  forth  in   the
Manufacturing  and  License Agreement and shall not be  subject  to  change
except by the mutual agreement of the parties hereto.

The  Manufacturing  and License Agreement shall provide  that  the  parties
shall  provide each  other with all reasonable cooperation which the  other
party  may  request in connection with the performance of the Manufacturing
and License Agreement, including but not limited to the following :

     (i) assistance, including the sharing of testing and other records  in
order  to enable        the Products to be manufactured, distributed,  used
or sold in the Territory;

     (ii)the  provision  of technical consultation (in-person,  telephonic,
and  written, as        requested during the term of the Manufacturing  and
License Agreement)     relating to the manufacture of the Products;

     (iii)     access to any improvements in or enhancements to the  Galaxy
Know-How  or        which is developed or discovered by the parties  during
the term of the            Manufacturing and License Agreement; and

     (iv) establishment of  certain  commercial  relationships  with  third
parties  in certain     countries, states and territories in the  Territory
as  may  be  deemed  by  the      parties to be desirable  to  manufacture,
promote,  market,  distribute  and/or  sell          the  Products  in  the
Territory.

Such  cooperation  will  be acknowledged in the Manufacturing  and  License
Agreement  to  constitute a significant portion of the consideration  being
delivered  by  each  of  the  parties under the Manufacturing  and  License
Agreement.

The   Manufacturing   and   License  Agreement   will   contain   customary
representations  and warranties, including representations  and  warranties
pertaining  to  Galaxy's ownership of the Know-How and  other  intellectual
property  rights concerning the manufacturing of the Products, as well  the
lack  of  Galaxy's infringement on the rights of others or the infringement
of  others upon the Know-How. The Manufacturing and License Agreement  will
also  provide that Galaxy will take all necessary and appropriate  measures
to  maintain  and  protect  all  portions of Galaxy's  Know-How,  including
registration, renewal, preservation and enforcement against any  infringing
person.

The  Manufacturing  and  License Agreement  shall  include  a  schedule  of
Products  which  BEL  has elected to manufacture.  To  the  extent  BEL  is
permitted  by the provisions of this Section 5 to make additional elections
from  time to time to manufacture additional Products, such schedule  shall
be amended to add these additional Products upon BEL's providing of written
notice to Galaxy notifying Galaxy that BEL is electing to add such products
to the schedule.

The  parties hereby expressly acknowledge their intent to negotiate in good
faith  the  terms of the Manufacturing and License Agreement. In the  event
that BEL and Galaxy cannot agree on a particular term or provision that  is
required to appear in the Manufacturing and License Agreement, then BEL and
Galaxy  shall  resolve such dispute by referring the matter  to  a  neutral
third party (the "Designee"). Within three months of the execution of  this
Agreement, BEL and Galaxy shall mutually compile and rank a list  of  three
candidates  from which such Designee may be selected.  Upon the  occurrence
of  such  a dispute, BEL and Galaxy shall contact the first person on  such
list  and negotiate with such person to retain them to settle such disputes
with  all costs and fees incurred in connection with such retention  to  be
borne  equally between BEL and Galaxy. If the first person on such list  is
not available for whatever reason, BEL and Galaxy shall refer the matter to
the  second person on the list and, if such second person is not  available
for  whatever  reason, to the third peron on the list.  In the  event  that
none of the persons on the aforementioned list reach agreement to serve  as
the  Designee  and the parties are unable to agree on another person,  then
either  party  may  commence  proceedings under  Section  17.10.2  of  this
Agreement.  By  accepting the position, the Designee explicitly  recognizes
such  Designee  is  subject to a duty of good faith and shall  resolve  the
issue  or  dispute in a manner consistent with the terms of this Agreement.
Within  45  calendar days of being retained by the parties,  such  Designee
shall review and investigate the positions of BEL and Galaxy concerning the
issue  or issues in dispute and inform BEL and Galaxy of his/her resolution
of  the dispute and such resolution shall be conclusively binding upon  BEL
and  Galaxy  and  become  a  part  of the  Manufacturing  and  Distribution
Agreement.  The decision of the Designee shall be conclusive and  shall  be
binding on the parties; provided, however, that notwithstanding anything to
the  contrary  stated  herein and notwithstanding the negotiations  of  the
parties  or  decisions  of  the  Designee regarding  the  drafting  of  the
Manufacturing  and  License  Agreement,  the  Manufacturing   and   License
Agreement  shall  include and incorporate those terms  and  provisions  set
forth  in  Sections 1, 2, 3 (with the exception of Section 3.7), 4,  6,  7,
12.4, 13.8, 14.4, 14.5, 15, 16 and 17 hereof as well as the terms set forth
in this Section 5 regarding the Manufacturing and License Agreement and, to
the extent Bel has not elected to manufacture some of the Products but will
instead  only continue to sell and distribute such Products, the  remaining
provisions  of  this Agreement.  Notwithstanding the foregoing,  BEL  shall
have  the  right  to  begin  manufacturing Products  immediately  upon  the
exercise  of its option; and, until the Manufacturing and License Agreement
is   completed  and  executed  by  the  parties,  BEL's  manufacturing  and
distribution  of  the  Products shall be governed  by  the  terms  of  this
Agreement  which  shall function and be construed for all purposes  as  the
Manufacturing  and License Agreement and the applicable  Royalty  Rate  for
each Product shall be four percent (4%).

The  parties  acknowledge  the difficulty of  ascertaining  the  amount  of
damages  to  be  incurred  by  BEL as a result  of  the  violation  of  the
provisions of this Section 5 by Galaxy and therefore agree that any  breach
of  this  Section  5  by  Galaxy shall require Galaxy  to  pay  to  BEL  as
liquidated  damages  (and  not  as  a  penalty)  an  amount  calculated  by
multiplying  the highest historical Aggregate Net Sales during  a  calendar
year  in  the  period of time commencing from the beginning of the  Initial
Term and ending at the time of such breach by Galaxy of the Products in the
Territory by BEL by the number of years remaining in the initial term since
the time of such breach by Galaxy.

6. PROMOTIONAL MATERIALS AND MARKETING

6.1.BEL  and  its Affiliates or distributor in the Territory shall  at  all
   times comply in all material respects with all legal requirements in force,
   relating to the storage, distribution, marketing and sale of the Products.

6.2.BEL   and  its  Affiliates  or  distributors  shall  promote,   market,
   distribute and sell the Products in a manner consistent with the claims and
   consumer statement which shall be defined as part of the Annual Plan which
   will be mutually designed and developed by the parties.

6.3.Annual  Plan  :  By  January 1 of each year during  the  term  of  this
   Agreement, BEL shall develop and provide to Galaxy for its review an annual
   business and marketing plan (the "Annual Plan") for the Products and their
   distribution containing in reasonable detail the following  information:

    (a) market data evolution and consumer information

    (b) sales objectives and the Performance Metrics;

    (c) actions on key elements of the products mix;

    (d) major marketing and sales activities programs;

    (e) Sales and Marketing budget; and

     (f)  such  other  information as may be  required  pursuant  to  other
sections of this       Agreement.

Using such Annual Plan, the strategy of the marketing of the Products shall
be mutually designed between the two parties and executed by BEL.

6.4.BEL  and  its  Affiliates or distributors shall promote and  distribute
   the  products according to the Products' profile and positioning in line
   with the Annual Plan. BEL agrees to notify Galaxy within a reasonable time
   of  any  major  factors, which have an effect on the  marketing  of  the
   Products.

6.5.Galaxy  shall  immediately  inform BEL of  any  inquiries  received  by
   Galaxy concerning the purchase of the Products for use in the Territory.

6.6.     BEL  shall immediately inform Galaxy of any inquiries received  by
BEL concerning the
          purchase of the Products for use outside the Territory.

7.  TRADEMARKS

7.1.The  Products shall be marketed, distributed, promoted and sold in  the
   Territory by BEL under BEL's Trademarks to be specified in the Annual Plan
   for each country, which Trademarks shall be the exclusive property of BEL.
   The Logo shall be placed on each Product marketed, distributed, promoted
   and  sold  in  the Territory by BEL, which Logo shall be  the  exclusive
   property of Galaxy.

7.2.Galaxy  acknowledges, recognizes and agrees that BEL, or its successors
   or assigns, shall remain the owners of the Trademarks, that Galaxy shall
   not,  by  virtue of this Agreement or otherwise, acquire any  rights  in
   respect of the Trademarks in relation to the Products or/and the goodwill
   associated therewith and that all such rights and goodwill are, and shall
   at  all times remain, vested in and inure to the benefit of BEL and  its
   successors and/or assigns. BEL and its Affiliates will not alter, obscure,
   remove, conceal or otherwise interfere with any markings, names, labels or
   other  indications of the source of origin of the Products which may  be
   placed by Galaxy on the Products. Positioning of  these elements on  the
   pack will be discussed and agreed between both parties.   BEL acknowledges,
   recognizes  and agrees that Galaxy, or its successors or assigns,  shall
   remain  the  owners of the Logo, that BEL shall not, by virtue  of  this
   Agreement  or otherwise, acquire any rights in respect of  the  Logo  in
   relation to the Products or/and the goodwill associated therewith and that
   all such rights and goodwill are, and shall at all times remain, vested in
   and inure to the benefit of Galaxy and its successors and/or assigns.

7.3.Galaxy shall not on its behalf or on behalf of any other party, in  any
   country  or  jurisdiction, register or attempt to register  any  of  the
   Trademarks or any other service mark, trademark, trade name, word or symbol
   which is confusingly similar to any of the Trademarks without BEL's prior
   written consent.  BEL shall not on its behalf or on behalf of any  other
   party, in any country or jurisdiction, register or attempt to register the
   Logo or any other service mark, trademark, trade name, word or symbol which
   is confusingly similar to the Logo without Galaxy's prior written consent.

7.4.Galaxy  shall  not be responsible for any payment of damages  to  third
   parties arising out of any action for infringement or alleged infringement
   of such third party's trademark rights by the use of the Trademarks by BEL,
   its Affiliates and/or distributors.  BEL shall not be responsible for any
   payment  of  damages  to third parties arising out  of  any  action  for
   infringement or alleged infringement of such third party's trademark rights
   by the use of the Logo by Galaxy or BEL.

7.5.To  the  extent the Trademarks or Logo appear on packaging relating  to
   the Products, Galaxy shall cause the designation of "(R)" or  "(TM)",
   whichever is appropriate, or such other customary symbol or legend which
   identifies correctly the status of the Trademarks and Logo to be placed
   adjacent to such  Trademarks and Logo in connection with each use or
   display of  the Trademarks and Logo on the Products.

7.6.Galaxy  will fully cooperate with BEL, at BEL's expense, in efforts  to
   maintain and enforce BEL's rights in the Trademarks; provided that, in the
   event the threat to such maintenance and enforcement is the responsibility
   or fault of Galaxy then Galaxy shall pay expenses incurred in connection
   with  such maintenance and enforcement efforts.  Galaxy will not  do  or
   permit to be done any action or thing which will in any way impair BEL's
   rights  in and to the Trademarks. Galaxy will not contest or assist  any
   other party in contesting the validity of BEL's ownership of any of  the
   Trademarks.  BEL will fully cooperate with Galaxy, at Galaxy's expense, in
   efforts to maintain and enforce Galaxy's rights in the Logo; provided that,
   in  the  event  the  threat to such maintenance and enforcement  is  the
   responsibility or fault of BEL then BEL shall pay expenses  incurred  in
   connection with such maintenance and enforcement efforts.  BEL will not do
   or  permit  to be done any action or thing which will in any way  impair
   Galaxy's rights in and to the Logo.  BEL will not contest or assist  any
   other party in contesting the validity of Galaxy's ownership of the Logo.

8.  SUPPLY OF THE PRODUCTS

8.1.Galaxy  shall  supply the Products directly to BEL and  its  Affiliates
   and/or third party distributors, for resale in the Territory, manufactured
   in  accordance with the specifications to be defined together within the
   Annual Plan and according to Galaxy's general business practices or, with
   respect to new products developed by Galaxy for sale by BEL, in accordance
   with specifications to which the parties shall mutually agree in good faith
   and attach to this Agreement as a supplemental exhibit.

8.2.Unless  and until BEL exercises its option to manufacture the Products,
   BEL and its Affiliates undertake to purchase all their requirements of the
   Products for resale in the Territory, exclusively from Galaxy under  the
   terms of its Agreement. In the case of BEL manufacturing the products, BEL
   will  no  longer have this obligation and will be free to buy basic  new
   material and packaging material on its own.

8.3.The  Products  will be supplied by Galaxy to BEL and Affiliates  packed
   and labeled at BEL specifications as reasonably agreed with Galaxy.

9.  PRICE AND TERMS OF PAYMENT

9.1.The Products will be supplied by Galaxy to BEL at prices which will  be
   agreed  in  writing  by the parties determined by reference  to  and  in
   accordance with the pricing formula set forth on Exhibit 3.  The price for
   any Product may be revised annually and may vary by country.  The purchase
   prices shall be expressed in U.S. dollars.

9.2.BEL  shall  purchase  the Products from Galaxy  on  the  basis  of  the
   Minimum Production Quantities specified in the attached Exhibit 4.  Galaxy
   agrees to use its best efforts to provide sufficient supply of the Products
   to fill all of BEL's orders that have been accepted by Galaxy in accordance
   with the procedures set forth in Section 10 and 11 hereof.

9.3.BEL may resell the Products in the Territory at such prices as BEL  may
   in  its sole discretion determine; provided that while BEL retains  sole
   discretion in its decisions regarding resale pricing, BEL will inform and
   discuss with Galaxy such decisions.

9.4.     All  payment  will  be made by US dollars denominated  irrevocable
   letters  of credit from a bank reasonably acceptable to Galaxy.  Letters
   of  credit may be drawn upon by Galaxy upon delivery of goods to  common
   carrier FOB US Port of shipment, provided that Galaxy provides proof  of
   such  delivery or certifies that such delivery was made to the bank upon
   which  the  letter  of  credit is being drawn.   All  fees  incurred  in
   connection with the issuance of the letters of credit shall be  paid  by
   Galaxy.

10. FORECASTS AND ORDERS

10.1.     BEL and its Affiliates shall provide to Galaxy, within 10 days of
   the  beginning  of  each calendar year concerning a  twelve  month  plus
   extension for 1st Quarter of the next calendar year, a non-binding forecast
   of their requirements for the Products, for each country in the Territory
   by quarter, such forecast to be updated quarterly when significant changes
   occur.

10.2.     BEL  shall furnish to Galaxy, within 30 days of the beginning  of
   each quarter, a three month forecast, for the following calendar quarter
   corresponding to its anticipated requirements for the Product  for  each
   country of the Territory.

10.3.    BEL  shall  provide  Galaxy  with firm  purchase  orders  for  the
   Products  required  at  least  sixty (60) days  prior  to  the  required
   delivery  date.  All orders shall be subject to written confirmation  by
   Galaxy.   All  purchase orders submitted by BEL and accepted  by  Galaxy
   for  Products  are and shall be subject to this Agreement and  shall  be
   deemed  to  incorporate  the  terms and conditions  of  this  Agreement,
   whether   or  not  so  specified  in  such  purchase  orders.   Galaxy's
   acceptances  of  orders  shall  be  evidenced  by  Galaxy  signing   and
   returning  the  acknowledgment copy of the order  within  two  (2)  days
   after  receipt of the order, together with a pro-forma invoice  for  the
   Products   covered  by  that  order.   All  orders  shall  contain   the
   information   necessary  for  Galaxy  to  fulfill   the   order,   which
   information shall include the following:

               (I)  A  reference to this Agreement and BEL's purchase order
     number;

               (II)A  description  and quantity of  each  of  the  Products
     required;

               (III)     The  address to which Products are to be  directed
     and the address to which Galaxy's invoice is to be sent; and

               (IV)The requested delivery date.

    Galaxy's General Terms and Conditions of Sale, as published from time
to time by Galaxy (the "Terms and Conditions"), shall apply to Galaxy's
sale of Products to BEL under this Agreement.  The current effective
version of the Terms and Conditions is attached hereto as Exhibit 5.  Where
in conflict, this Agreement shall control over the Terms and Conditions.
Notwithstanding the foregoing, the terms and conditions of this Agreement
shall take precedence over and govern in the event of conflict between the
terms and conditions of this Agreement, the terms and conditions of any
other documents and forms of the parties, including, without limitation,
BEL's quotation request and purchase order forms, Galaxy's quotation form,
and any confirmation, acknowledgment or other similar document.  Any
provision or data in any order, any subordinate document such as shipping
releases, or any other document originated by either party, or contained in
any documents or forms attached to or referenced in any of the above
documents, which modifies, supplements or conflicts with the terms of this
Agreement shall not be binding unless expressly agreed to in writing by the
parties that such writing supercedes this Agreement.

10.4Quantities of  the Products to be shipped to BEL shall be confirmed  to
BEL within two (2) days after the receipt by Galaxy of a purchase order for
same  from  BEL  and shall be shipped to BEL within sixty (60)  days  after
receipt by Galaxy of a purchase order for same from BEL.

11. SHIPMENTS

11.1.     Galaxy  shall cause all shipments of the Products to be delivered
   to BEL and its Affiliates or distributors (incoterms 2000) FOB, US port of
   shipment.  Shipments shall be invoiced at any time after delivery is made.

11.2.     Shipments of the Products shall be deemed accepted  by  BEL  upon
   final release by BEL's quality control representatives at or before FOB,
   point  of  shipment.  Final release shall be provided  by  BEL  and  its
   Affiliates,  within  30 days after tender of delivery  of  the  Products
   ordered, or BEL shall be deemed to have given unqualified acceptance  of
   such Products and to have waived all of its claims of any kind with respect
   to  said  Products, except with respect to latent defects.  In  case  of
   Products with latent defects, BEL shall provide written notice to Galaxy of
   such  defects within 30 (thirty) days of the date it discovered or  with
   reasonable diligence should have discovered such latent defects.

11.3.     Any rejection of a shipment or question as to the quality of  the
   Products  delivered  shall  be  supported  by  written  notification  or
   explanation. In such case, and provided BEL demonstrates that said Products
   have  been properly handled and stored after tender of delivery,  Galaxy
   shall  assume all costs for return of the defective goods and supply  of
   replacement  goods, or other corrective action as may be agreed  between
   Galaxy  and  BEL,  it  being  understood that Galaxy's  responsibilities
   hereunder shall be limited to replacement of said defective goods. Galaxy
   may demand at its own cost separate storage, inspection and dispatch  of
   rejected goods. If Galaxy disputes the written notification from BEL, the
   parties shall submit samples of the rejected goods to a mutually acceptable
   independent  laboratory for analysis.  The decision of  the  independent
   laboratory in the matter shall be final. The party found to be in  error
   shall bear the cost of any such analysis.

11.4.     Risk  of loss and title shall pass to BEL at the time of delivery
   of the Products to BEL's designated location or carrier at the U.S. port of
   shipment.

12. LABELLING AND PACKAGING

12.1.     BEL and its Affiliates or distributors, shall be responsible  for
     providing to Galaxy sufficient information for Galaxy to determine, produce
     and  maintain the content of all labeling for the Products,  including
     package inserts and promotional material throughout the Territory. BEL
     warrants that any statement or other information provided by BEL to Galaxy
     concerning  the Products contained therein shall be in line  with  the
     approved legal requirements of the Products in each country, state  or
     territory of the Territory and shall keep Galaxy free and harmless from any
     connected claim, damage, liability, loss and/or expense arising therefrom
     to  the  extent such damage arises as a consequence of such  statement
     provided  by  BEL  to Galaxy not being in conformity with  such  legal
     requirements.

12.2Galaxy   will   package  the  Products  according  to   the   packaging
    specifications,  including labeling and insertion  of  package  inserts
    and  promotional material  provided and directed by BEL and  agreed  to
    by   Galaxy   (within  reasonable  existing  capabilities   of   Galaxy
    manufacturing  processes) and will be responsible for any  failures  of
    the Products to be so packaged.

12.3.     All  packaging,  insert  sheet,  labels,  advertising  and  other
    materials  relevant to the Products, shall bear the notice "Distributed
    under  license  of  Galaxy USA", such notice to be  approved   by  both
    parties before first printing and use thereof, such approval not to  be
    unreasonably withheld.

12.4.     BEL  shall  be responsible at its cost and expense for  complying
    with  all  regulatory and governmental requirements applicable  in  the
    Territory to the distribution of the Products; provided, however,  that
    until  BEL exercises its option to manufacture the Products, BEL  shall
    not  be  responsible for any cost or expense related to  or  concerning
    the  quality of the Products or any other aspects related to and solely
    under the purview of the manufacturing of the Products.

13  QUALITY CONTROL

Galaxy  acknowledges that the Trademarks indicate to the  public  that  the
Products  offered  for  sale  or  sold bearing  the  Trademarks  are  of  a
commercially  consistent quality and standard, and that BEL's  use  of  the
Trademarks  pursuant to this Agreement must be in a manner  that  does  not
have  a  detrimental impact on BEL's reputation or the goodwill  associated
with  BEL's  business  and the Trademarks.  Galaxy  agrees  that  it  shall
maintain  a high standard of quality (at least as high as Galaxy  presently
maintains)  with respect to the manufacture of the Products  and  packaging
for  the  Products, as well as in all depictions, marketing and advertising
of  the  Products.   Galaxy  shall comply with  all  applicable  legal  and
regulatory  requirements  for the manufacturing of  the  Products  and  the
conduct of its business and performance of its obligations hereunder.   BEL
acknowledges  that  the  Logo indicates to the  public  that  the  Products
offered  for sale or sold bearing the Logo are of a commercially consistent
quality  and standard, and that Galaxy's use of the Logo pursuant  to  this
Agreement  must be in a manner that does not have a detrimental  impact  on
Galaxy's  reputation or the goodwill associated with Galaxy's business  and
the Logo.  BEL agrees that it shall maintain at least as high a standard of
quality   as  BEL  presently  maintains  with  respect  to  the  promotion,
marketing, distribution and sale of Products in the Territory.   BEL  shall
comply  with  all  applicable  legal and regulatory  requirements  for  the
promotion, marketing, distribution and sale of Products and the conduct  of
its business and performance of its obligations hereunder.

13.1Galaxy   shall   permit  BEL's  quality  control  representatives,   at
    reasonable  times and on reasonable notice, to inspect those  areas  of
    Galaxy's  production  facility at which Galaxy shall  be  manufacturing
    and  packing  the  Products  for  shipment  to  BEL.  Galaxy  shall  be
    permitted  to  visit/review annually BEL's distribution  facilities  at
    reasonable times and upon reasonable notice.

13.2Galaxy  shall manufacture, or have manufactured, the Products according
    to   Good  Manufacturing Practices and requirements applicable  to  the
    industry.   Galaxy  shall  at  any  time  be  free  to  determine   the
    manufacturer  and the place of manufacture of the Products,.  Prior  to
    BEL   manufacturing,  Galaxy  cannot  be  restricted  to  manufacturing
    Products outside the Territory.

13.3Galaxy  shall  provide  to BEL all test procedures  for  the  Products,
    necessary  for BEL to verify the quality of the Products  it  purchases
    pursuant to this Agreement.

13.4BEL shall not make alterations or permit alterations to be made to  the
Products.

13.5Galaxy  shall  maintain  at  its principal place  of  business  reserve
    samples for each lot according to applicable legal requirements,  until
    the  expiration  date of the Product sold to BEL.   Records  should  be
    kept for three years following production date.

13.6In  the  event  of a recall of any Products required by a  governmental
    agency  or  authority of competent jurisdiction or  if  recall  of  the
    Products  is  jointly deemed advisable by Galaxy and BEL,  such  recall
    shall  be  promptly  implemented  and  administered  by  BEL  and   its
    Affiliates,  in  strict consultation with Galaxy in a manner  which  is
    appropriate  and reasonable under the circumstances and  in  conformity
    with  accepted  trade practices. The cost of any such recall  shall  be
    borne  by Galaxy to the extent Galaxy's negligence and/or fault  caused
    the  recall  to  be  necessary. Galaxy will have no obligation  to  pay
    costs  of  recalls  of  Products caused by consequences  of  negligence
    and/or  faults committed by third parties occurring after such Products
    are  sold  by  BEL  and BEL shall have no obligation to  pay  costs  of
    recalls of Products caused by consequences of negligence and/or  faults
    of  Galaxy.  In  no circumstance shall BEL have any obligation  to  pay
    costs  of  any  recalls of Products not manufactured  by  BEL.   In  no
    circumstance  shall  Galaxy have any obligation to  pay  costs  of  any
    recalls  of  Products not manufactured by Galaxy.  The  provisions  and
    obligations   of   this  section  shall  survive  any   expiration   of
    termination of this Agreement.

13.7 Galaxy  agrees  that  it will not permit any lien, security  interest,
     pledge,  assignment  to  a creditor, assignment  obligation  or  other
     encumbrance or restriction of any kind to be imposed or placed on  any
     of  its  rights under this Agreement and/or in and to the Products  or
     permit  execution against its rights hereunder of any judgment against
     Galaxy, or grant any power to any third party to do so, and shall  not
     enter into any agreement which is otherwise inconsistent with Galaxy's
     obligations under this Agreement, without BEL's prior written consent.

 13.8     In the event that BEL exercises its option to manufacture certain
     or  all  of  the  Products, Galaxy agrees to assist BEL  by  providing
     access  to any necessary document or dossier in Galaxy's ownership  or
     possession  to  enable BEL to make application to any food  regulatory
     authority   or  governmental  agency  for  BEL  to  be  appointed   as
     Manufacturer of the Products under any marketing authorization held by
     BEL  or  to  continue  any  actual registration  or  to  start  up  an
     application for marketing of the Products.

14. REPRESENTATIONS AND WARRANTIES

14.1Galaxy  warrants to BEL that each  Product sold to BEL  shall,  at  the
time  of  delivery by Galaxy, conform to the specifications then in  effect
and  shall  meet all such specifications throughout the approved shelf-life
in  the Territory.  Galaxy covenants to provide true and accurate copies of
such  specifications (including any revisions thereto) to BEL  as  soon  as
practicable.

14.2Galaxy  further warrants to BEL that, in the event any of the  Products
do  not  meet the specifications (subject to verification by the  procedure
provided in Section 11.2. upon delivery)Galaxy shall either replace the non-
conforming Products or give BEL a credit against future purchases  for  the
purchase price of such non conforming goods, at BEL's option.

14.3Galaxy  represents that it has General Product Liability  Insurance  in
force,  in  respect of direct liability arising from a defect  in  Galaxy's
manufacture of Products to its agreed specifications up to a limit  of  not
less  than One Million US Dollars (US$1,000,000) combined single limit each
occurrence  and Two Million US Dollars (US$2,000,000) in the aggregate  and
umbrella   coverage  in  an  amount  equal  to  Ten  Million   US   Dollars
(US$10,000,000).   Galaxy represents that such insurance provides  coverage
of  all  normal  risks  incident to Galaxy's business  and  its  respective
properties  and assets and are in character and amount at least  equivalent
to that carried by persons engaged in similar businesses and subject to the
same  or  similar perils or hazards.  The certificates of insurance listing
the  above-referenced coverage and a copy of the General Product  Liability
Insurance shall be provided to BEL prior to Galaxy's commencement of duties
pursuant  to  this  Agreement, but in no event  more  than  30  days  after
execution of this Agreement, and Galaxy shall require each carrier to  give
BEL  no  less  than  30  days'  notice  of  any  prospective  cancellation,
restriction, limitation or modification of coverage or limits.

14.4Galaxy  hereby represents and warrants that (a) Galaxy is a corporation
duly  organized, validly existing and in good standing under  the  laws  of
Florida,  with  full corporate power and authority to execute  and  deliver
this Agreement and to consummate the transactions contemplated hereby,  (b)
the   execution,  delivery  and  performance  of  this  Agreement  and  the
consummation  of the transactions contemplated hereby by Galaxy  have  been
duly  and  validly  authorized and no further  corporate  authorization  is
required  on the part of Galaxy to consummate the transactions contemplated
hereby,  (c) this Agreement and all other documents executed and  delivered
by  Galaxy  pursuant  to this Agreement constitute  the  legal,  valid  and
binding obligation of Galaxy, enforceable against Galaxy in accordance with
their  respective  terms, (d) the individuals executing this  Agreement  on
behalf  of  Galaxy have been duly authorized and empowered to execute  this
Agreement for the purpose of binding Galaxy to this Agreement, (e) Galaxy's
performance of this Agreement does not require any third party consents  or
governmental  approvals, filings, registrations or permits  that  have  not
already  been obtained and will be maintained during the Initial  Term  and
the  execution, delivery and performance of this Agreement by  Galaxy  does
not  and will not violate any contract or other arrangement between  Galaxy
and  any  third  party,  or any applicable law or regulation  and  (f)  the
Products  are and will be merchantable and fit for their intended  purposes
and  do  not  infringe  any  third  party intellectual  property  or  other
proprietary  right, comply with all laws and regulations applicable  within
the Territory and all Product registrations and approvals necessary for the
Products  to  be sold within the Territory have been obtained and  will  be
maintained in effect by Galaxy during the Initial Term.

14.5BEL  hereby represents and warrants that (a) BEL is a corporation  duly
organized,  validly  existing  and  in good  standing  under  the  laws  of
[France],  with full corporate power and authority to execute  and  deliver
this Agreement and to consummate the transactions contemplated hereby,  (b)
the   execution,  delivery  and  performance  of  this  Agreement  and  the
consummation of the transactions contemplated hereby by BEL have been  duly
and  validly authorized and no further corporate authorization is  required
on  the part of BEL to consummate the transactions contemplated hereby, (c)
this  Agreement  and  all other documents executed  and  delivered  by  BEL
pursuant  to  this  Agreement  constitute  the  legal,  valid  and  binding
obligation  of  BEL,  enforceable against  BEL  in  accordance  with  their
respective terms, (d) the individuals executing this Agreement on behalf of
BEL  have been duly authorized and empowered to execute this Agreement  for
the purpose of binding BEL to this Agreement, (e) BEL's performance of this
Agreement  does  not  require  any  third party  consents  or  governmental
approvals,  filings, registrations or permits that have  not  already  been
obtained  and  will be maintained during the term, and (f)  the  execution,
delivery  and  performance of this Agreement by BEL does not and  will  not
violate any contract or other arrangement between BEL and any third  party,
or any applicable law or regulation.

14.6BEL represents that it has General Product Liability Insurance in
force in the Territory, in respect of direct liability arising from BEL's
manufacture, handling, sale or distribution of Products to its agreed
specifications up to a limit of not less than One Million US Dollars
(US$1,000,000) combined single limit each occurrence and Two Million US
Dollars (US$2,000,000) in the aggregate.  BEL represents that such
insurance provides coverage of all normal risks incident to BEL's business
and its respective properties and assets and are in character and amount at
least equivalent to that carried by persons engaged in similar businesses
and subject to the same or similar perils or hazards.   The certificates of
insurance listing the required coverage and a copy of the Comprehensive
General Liability Insurance shall be provided to Galaxy prior to BEL's
commencement of duties pursuant to this Agreement, but in no event more
than 30 days after execution of this Agreement, and BEL shall require each
carrier to give Galaxy no less than 30 days' notice of any prospective
cancellation, restriction, limitation or modification of coverage or
limits.

15. INDEMNITY

15.1Notwithstanding provisions of Section 11.2., Galaxy agrees  to  defend,
indemnify  and  hold BEL and its Affiliates or distributors, harmless  from
and  against  any and all losses, damages, liabilities, costs and  expenses
(including reasonable attorney's fees) that are related in any way  to  (i)
failure  of  any  Products supplied hereunder to conform to the  applicable
specifications as provided at Section 14.1. excluding any losses,  damages,
liabilities, costs and expenses resulting from any such non-compliance that
shall  result from any Products which shall be altered, changed, packed  or
otherwise treated by BEL, its Affiliates and/or distributors other than  in
accordance  with Galaxy's instruction and specifications  in a manner  that
causes the loss, damage, liability, cost or expense ; (ii) the  manufacture
of  the Products by Galaxy ; (iii) the correct use by BEL and/or Affiliates
of  the Know-How ;  (iv) any breach by Galaxy of any of its obligations  or
warranties  under  this  Agreement; or (v) any  damages  to  third  parties
arising out of any action for infringement or alleged infringement of  such
third  party's  trademark  rights by the  use  of  the  Logo  by  BEL,  its
Affiliates and/or distributors.

15.2BEL  agrees  to  defend, indemnify and hold Galaxy harmless   from  and
against  any  and  all  losses, damages, liabilities,  costs  and  expenses
(including reasonable attorney's fees)  that are related in any way to  (i)
failure  by BEL or its Affiliates or distributors to comply with applicable
rules  and regulations of the Territory regarding the promotion, marketing,
distribution or selling of the Products in the Territory; (ii) the storage,
transfer, or sale (including without limitation the distribution, promotion
and  marketing)  or  the  manunufacture of  the  Products  by  BEL  or  its
Affiliates;  (iii) any breach by BEL or its Affiliates or  distributors  of
any  of  the  obligations or warranties under this Agreement; or  (iv)  any
damages  to  third  parties arising out of any action for  infringement  or
alleged infringement of such third party's trademark rights by the  use  of
the Trademarks by BEL, its Affiliates and/or distributors.

15.3BEL  shall  be  responsible  towards its  customers  for  handling  all
matters  concerning the Products. If such Products expire as  a  result  of
BEL's  gross negligence or wrongful acts, BEL shall be responsible for  any
expired Product whether stored by BEL and/or its Affiliates or distributors
or returned by wholesalers, retailers, to whom said Products have been sold
by BEL or its Affiliates or distributors.

15.4The  parties agree that, in case of commencement of any  action,  suit,
proceeding or investigation or threat thereof for which indemnification  is
requested  to  either party, then (a) said party shall promptly  inform  in
writing the other, (b) the parties shall fully cooperate in the defense  of
said  action, suit or proceeding and (c) either party shall not accept  any
settlement  without  the  other  party's  consent  (which  shall   not   be
unreasonably withheld).

15.5Notwithstanding  any  other provision of this  Agreement,  and  without
prejudice to the general rules established by mandatory laws of the various
countries  of  the  Territory  on each party's  liabilities  towards  third
parties  (as described at Sections 15.1 and 15.2. here above), in no  event
shall  damages  to be paid by one party to the other  extend  to  indirect,
special,  incidental or consequential damages (including without limitation
loss  of  profits  or revenues), regardless of whether  such  damages  were
foreseeable or not.

15.6The  remedies  set  forth  herein are the  exclusive  remedies  of  the
parties as to the stated subject matter.

15.7The  provisions and obligations of this Section 15  shall  survive  any
expiration or termination of this Agreement.

15.8  BEL agrees to maintain General Product Liability Insurance in  amount
and  type  maintained by comparable distributors (and  to  the  extent  BEL
manufactures  Products, comparable manufacturers) of  similar  Products  in
similar circumstances  during the term of this Agreement.

15.9The  representations, warranties and covenants provided in  Section  14
and  Section  15  hereof,  shall  survive for  four  (4)  years  after  the
termination of this Agreement for any reason.

16.BEL's OBLIGATIONS

BEL shall be obliged to :

16.1.    Adhere  to  the  terms  and conditions of  the  Manufacturing  and
   License  Agreement .

16.2.    Ensure  that,  except  where Galaxy fails  to  provide  sufficient
   supply  of  the  Products to meet BEL's needs, the distributed  Products
   are  and will continue to be produced directly by Galaxy and/or, if  BEL
   exercises  its  option  to manufacture the Products,   ensure  that  the
   quality  of such products meets the standards to be set and agreed  upon
   in the final Manufacturing and License Agreement.

16.3.    Ensure  that the distribution or, to the extent BEL exercises  its
   option  to  manufacture the Products, manufacture of the  Products  does
   not  infringe  or violate any existing intellectual property  rights  of
   any  third party. To the extent that the Products incorporate any  third
   party  Know-How  that  BEL is aware of or has  been  made  aware  of  by
   Galaxy,  the Products, to the extent manufactured by BEL, shall  mention
   the  licensor  of such Know-How and list the specifications  thereof  in
   sufficient  detail as would be necessary for any subsequent licensee  of
   the  specifications  to be able to obtain a license  for  such  Know-How
   from the applicable licensor.

16.4.    Refrain  from  sub-licensing the distribution or manufacturing  of
   the  Products,  except  to  its  Affiliates  and  distributors.  Nothing
   contained  herein  shall limit the right of BEL  to  appoint  sales  and
   marketing agents and distributors in respect of the distribution of  the
   Products,   provided   that  BEL  retains  control   over   the   actual
   distribution / manufacture processes of the Products and that  all  such
   agents  and  distributors agree to be bound by the terms and  conditions
   of the Agreement applicable to them.

17. GENERAL PROVISIONS

17.1.    Termination

17.1.1.   Notwithstanding  any  other provision  of  this  Agreement,  this
     Agreement  may be terminated by either party, if:

A.  The  other  party  commits a material breach of  any  of  its  material
    obligations under this Agreement, which shall not have been remedied within
    thirty (30) days from the party's giving of written notice of such breach.

B.  The  other party becomes insolvent, makes an assignment for the benefit
    of its creditors, or is placed in receivership, liquidation, or bankruptcy
    ; or

C.  The  other  party has suffered an event of "force majeure", as  defined
    in Section 17.4.1 hereof, which has prevented such party's performance of
    its obligations under this Agreement for a continuous period of six (6)
    months or longer.

Termination under A. and C.  above may apply to a part (i.e. one or more of
the  countries, states or territories of the Territory) or the whole of the
Territory, depending on the country, state or territory to which the breach
or  the  "force majeure" events refer as mutually determined by the parties
which determination shall be made in accordance with the dispute resolution
mechanism  set  forth in Section 17.10.2 in the event  the  parties  cannot
agree.   In  the event that either Galaxy or BEL terminates this  Agreement
under  A, B or C, BEL will have the ability at the time of such termination
to  elect  to  convert  the  Agreement to  the  Manufacturing  and  License
Agreement  and  begin manufacturing in accordance with  the  provisions  of
Section 5 hereof.

17.1.2.   In accordance with Section 5 hereof, upon a change of control  of
     Galaxy, notice of which shall be given by Galaxy to BEL within one (1)
     month of such change of control, BEL shall have the option to elect  to
     begin manufacturing and to automatically convert this Agreement into and be
     controlled and governed by the terms of the Manufacturing and  License
     Agreement once executed by the parties.

17.1.3.   BEL may terminate the Agreement at any time when a  change of the
     current management team of Galaxy occurs and such new management team is,
     in  BEL's opinion, not of a quality that is comparable to that of  the
     current management team; provided that BEL will have the ability at the
     time  of  such  termination to elect to convert the Agreement  to  the
     Manufacturing and License Agreement and begin manufacturing in accordance
     with the provisions of Section 5 hereof.

17.1.4.   The  right  of  either  party  to terminate  this  Agreement,  as
     provided in Section 17.1.2., shall not be affected in any way by its waiver
     of, or failure to take action with respect to, any other default or by the
     granting of any time or other indulgence.

17.1.5.   Termination or expiration of this Agreement for any reason  shall
     not relieve either party of any liability or obligations which accrued
     under this Agreement prior to such termination or expiration.

17.2.    Consequences of Termination or Expiration

17.2.1.  Upon termination or expiration of this Agreement for any reason :

A.  BEL  shall  promptly  cease  distributing, selling  and  promoting  the
    Products,  provided that BEL shall have the right  to  dispose  of  its
    inventory of the Products

B.  Any  work in progress and/or outstanding orders for the Products at the
    time  of  termination  or expiration shall be completed  by  Galaxy  in
    accordance with the terms of this Agreement and all such Products, along
    with  any remaining stocks of products in Galaxy's possession shall  be
    delivered and invoiced to and paid for by BEL at the then current prices
    and in accordance with the terms of this Agreement ;

C.  In  case  of  termination of the Agreement, the costs and  disposal  of
    any/all packaging will be the responsibility of the party who initiated the
    termination, so long as  Galaxy has not purchased packaging in excess of
    the  forecast  provided by BEL in which event such costs shall  be  the
    responsibility of Galaxy regardless of who initiated the termination.

17.3.    Confidentiality

  17.3.1.  BEL will hold, and will use its reasonable efforts to cause  its
Affiliates,  and  their  respective  representatives  to  hold,  in  strict
confidence   from   any   person  (other  than  any   such   Affiliate   or
representative),  unless  (i)  compelled  to  disclose   by   judicial   or
administrative process or by other requirements of law, (ii)  disclosed  in
connection with obtaining the necessary approvals of this Agreement and the
transactions   contemplated  hereby  from  customers  or  governmental   or
regulatory  authorities,  or (iii) disclosed in  an  action  or  proceeding
brought  by  a party hereto in pursuit of its rights or in the exercise  of
its remedies hereunder, all documents and information concerning Galaxy  or
any of its Affiliates furnished to BEL by Galaxy or its representatives  in
connection  with  this  Agreement or the transactions contemplated  hereby,
except  to  the extent that such documents or information can be  shown  to
have  been  (a)  previously known by BEL, (b) in the public domain  (either
prior  to  or  after  the  furnishing  of  such  documents  or  information
hereunder)  through no fault of such receiving party or (c) later  acquired
by  BEL  from  another source if such source is not under an obligation  to
another  party  hereto to keep such documents and information confidential.
In  the event this Agreement is terminated, upon the request of Galaxy, BEL
will,  and  will  cause its Affiliates and their respective Representatives
to,  promptly  (and in no event later than five Business  Days  after  such
request)  redeliver or cause to be redelivered all copies of documents  and
information  furnished by Galaxy in connection with this Agreement  or  the
transactions  contemplated hereby and destroy or cause to be destroyed  all
notes,  memoranda,  summaries, analyses, compilations  and  other  writings
related thereto or based thereon prepared by Galaxy.

  17.3.2.  Galaxy will hold, and will use its reasonable efforts  to  cause
its  Affiliates,  and their respective representatives to hold,  in  strict
confidence   from   any   person  (other  than  any   such   Affiliate   or
representative),  unless  (i)  compelled  to  disclose   by   judicial   or
administrative process or by other requirements of law, (ii)  disclosed  in
connection with obtaining the necessary approvals of this Agreement and the
transactions   contemplated  hereby  from  customers  or  governmental   or
regulatory  authorities,  or (iii) disclosed in  an  action  or  proceeding
brought  by  a party hereto in pursuit of its rights or in the exercise  of
its remedies hereunder, all documents and information concerning BEL or any
of  its  Affiliates  furnished to Galaxy by BEL or its  representatives  in
connection  with  this  Agreement or the transactions contemplated  hereby,
except  to  the extent that such documents or information can be  shown  to
have  been (a) previously known by Galaxy, (b) in the public domain (either
prior  to  or  after  the  furnishing  of  such  documents  or  information
hereunder)  through no fault of such receiving party or (c) later  acquired
by  Galaxy from another source if such source is not under an obligation to
another  party  hereto to keep such documents and information confidential.
In  the event this Agreement is terminated, upon the request of BEL, Galaxy
will,  and  will  cause its Affiliates and their respective Representatives
to,  promptly  (and in no event later than five Business  Days  after  such
request)  redeliver or cause to be redelivered all copies of documents  and
information  furnished  by BEL in connection with  this  Agreement  or  the
transactions  contemplated hereby and destroy or cause to be destroyed  all
notes,  memoranda,  summaries, analyses, compilations  and  other  writings
related thereto or based thereon prepared by BEL.

  17.3.3. Except to the extent that disclosure may be required by  law,  or
except  to  the  extent  otherwise agreed by the parties  in  writing,  the
parties  agree  not to disclose the terms of this Agreement  to  any  third
parties.

17.4. "Force majeure"

  17.4.1.The  performance by either party of any covenant or obligation  on
its  part to be performed under this Agreement shall be excused by  floods,
strikes or other labour disturbances, riots, fire, accidents, war, acts  of
terrorism,  embargoes, delays of carriers, inability  to  obtain  materials
from  normal  sources, failure of power or of natural  sources  of  supply,
acts,  injunctions,  or  restraints  of  government  (whether  or  not  now
threatened),  or any cause preventing such performance whether  similar  or
dissimilar  to  the foregoing beyond the reasonable control  of  the  party
bound  by  such  covenants  or obligations ("force  majeure")  ;  provided,
however,  that  the  party  affected shall not  have  procured  such  force
majeure,  shall have used reasonable diligence to avoid such force  majeure
or  ameliorate  its  effects, and shall continue to take  all  commercially
reasonable actions within its power to comply as fully as possible with the
terms  of  this Agreement, subject to the ability of the party to terminate
the Agreement pursuant to Section 17.1.1 hereof.

 17.4.2 Inability to supply

  17.4.2.1.  If  for any reason (including "force majeure"  as  defined  in
Section  17.4.)  Galaxy  foresees  an  inability  to  supply,  directly  or
indirectly,  with  its  requirements for the Products,  then  Galaxy  shall
promptly notify BEL. BEL and Galaxy shall meet at either party's request as
soon as possible to attempt to resolve the problem of supply.

  17.4.2.2.  In the event that Galaxy is unable to supply BEL, directly  or
indirectly,  with sufficient quantities of the Products to meet  any  order
of  BEL that corresponds to BEL's previous forecasts as accepted by Galaxy,
Galaxy shall exert commercially reasonable efforts to obtain another source
of  supply from an Affiliate or third party to meet BEL's requirements.  If
Galaxy  fails to obtain such other source of supply, BEL may  use  its  own
efforts  to  locate  a  source that is satisfactory  to  BEL  in  its  sole
discretion, and Galaxy shall have no further liability to BEL with  respect
to  the  particular order.  Notwithstanding anything stated herein  to  the
contrary,  Galaxy  shall  use its best efforts to  satisfy  any  order  BEL
submits that is accepted by Galaxy.

  17.4.2.3. In the event, and for such time, that BEL, notwithstanding  the
provisions  of  Sections  17.4.2.1.and 17.4.2.2. is  unable  to  supply  or
arrange for the supply of BEL's requirements for the Products, then  Galaxy
or  Galaxy's  nominee will allocate its production of the Products  between
BEL and Galaxy's other customers for the Products (including Galaxy) in the
same  ratio as all the various parties' respective utilization of  Galaxy"s
output of the products in the 12 (twelve) months preceding the shortage  of
supply.

 17.5. Assignment

This  Agreement shall not be assigned by either party without  the  written
consent of the other party, provided, however, that either party may assign
this  Agreement to an Affiliate without the other party's consent by giving
the other party at least sixty (60) days advance notice in writing.  In the
event  Galaxy assigns its rights and responsibilities under this  Agreement
to  an  Affiliate then, prior to such assignment, Galaxy shall execute  and
provide  to BEL a guaranty in both form and substance reasonably acceptable
to  BEL  pursuant to the terms of which Galaxy shall agree to guaranty  the
performance by Affiliate of Galaxy's responsibilities and obligations under
this Agreement.    In the event BEL assigns its rights and responsibilities
under  this  Agreement to an Affiliate then, prior to such assignment,  BEL
shall  execute and provide to Galaxy a guaranty in both form and  substance
reasonably  acceptable to Galaxy pursuant to the terms of which  BEL  shall
agree  to  guaranty the performance by Affiliate of BEL's  responsibilities
and  obligations under this Agreement.  Violation of the provisions of this
Section  17.5 shall render such assignment null and void and  of  no  legal
effect.

 17.6.Non-waiver and other remedies

The  failure  of  either  party  to insist upon  the  strict  and  punctual
performance  of  every  provision of this Agreement  shall  not  constitute
waiver  of  nor  estoppel  against asserting  the  right  to  require  such
performance,  nor shall a waiver and estoppel in one instance constitute  a
waiver  or estoppel with respect to any other breach, whether of a  similar
nature or otherwise.

 17.7.   Unenforceable terms

     If  a  court of competent jurisdiction adjudges any provision of  this
Agreement  to  be invalid or unenforceable, the remaining provisions  shall
not  be  affected thereby, and the parties shall in good faith  attempt  to
amend  this  Agreement  to eliminate such invalidity  or  unenforceability,
without thereby affecting the intent of the parties as expressed herein.

 17.8.   Notice

 17.8.1.  All  notices or other communications which shall or may be  given
    pursuant  to this Agreement shall be effective upon receipt  and  shall
    be  in  writing and delivered personally or by registered or  certified
    mail, or telefax, addressed as follows :

    If to    GALAXY NUTRITIONAL INC
         2441 Viscount Row
         ORLANDO FL. 32809
         USA

    If to    FROMAGERIES BEL SA
        4, rue d'Anjou
        75008 PARIS
        France

     With a copy to:             Greenberg Traurig, P.A.
     (except for purchase        1221 Brickell Avenue
     orders and shipping         Miami, Florida  33131
     releases)                   Facsimile No.:  305-579-0717
                                 Attn:  Robert Grossman, Esq

   17.8.2. Either party may change its address for purposes of this Section
by giving written notice of such change to the other party.

 17.9. Agency and representation

The legal relationship between the parties shall not be construed such that
either  party is deemed a partner or agent of the other party, nor will  it
confer upon either party the right or power to bind the other party in  any
contract  or  to the performance of any obligations with the  other  as  an
independent contractor.

 17.10      Governing law dispute resolution

 17.10.1.   This Agreement shall be governed by and construed in accordance
      with  the        laws  of  the  State of New York,  and  the  parties
      consent  to  the jurisdiction of the state or federal court  situated
      in Manhattan  County, New York.

 17.10.2.  If the parties should have a material dispute arising out of  or
      relating  to  this  Agreement or the parties' respective  rights  and
      duties  hereunder, then the parties will resolve such dispute in  the
      following  manner:   (i) any party may at any  time  deliver  to  the
      other  a written dispute notice setting forth a brief description  of
      the  issue  for  which such notice initiates the  dispute  resolution
      mechanism  contemplated by this Section, (ii) during the thirty  (30)
      day  period  following  the delivery of the notice  described  above,
      appropriate  representatives of the various  parties  will  meet  and
      seek  to  resolve  the disputed issue through negotiation,  (iii)  if
      representatives  of  the parties are unable to resolve  the  disputed
      issue  through  negotiation, then within  ten  (10)  days  after  the
      period  described  above, the parties will refer the  issue  (to  the
      exclusion  of  a  court of law) to final and binding  arbitration  in
      Orlando,  Florida,  if  initiated  by  BEL  and  Paris,  France,   if
      initiated  by Galaxy, in accordance with the then existing  rules  of
      conciliation  and  arbitration  (the "Rules")  of  the  International
      Chamber  of  Commerce (the "Chamber"), and judgment  upon  the  award
      rendered  by  the  arbitrators may be entered  in  any  court  having
      jurisdiction  thereof; provided, however, that the law applicable  to
      any  controversy  shall  be  the  law  of  the  State  of  New  York,
      regardless  of  principles of conflicts of laws.  In any  arbitration
      pursuant  to  this  Agreement, (i) discovery  shall  be  allowed  and
      governed by the New York Rules of Civil Procedure and (ii) the  award
      or  decision  shall be rendered by a majority of  the  members  of  a
      Board  of  Arbitration consisting of three (3) members, one  of  whom
      shall  be appointed by each party and the third of whom shall be  the
      chairman  of the panel and be appointed by mutual agreement  of  said
      two  party-appointed arbitrators.  In the event of  failure  of  said
      two   arbitrators  to  agree  within  thirty  (30)  days  after   the
      commencement  of the arbitration proceeding upon the  appointment  of
      the  third arbitrator, the third arbitrator shall be appointed by the
      Chamber  in  accordance  with the Rules.  In the  event  that  either
      party  shall fail to appoint an arbitrator within ten (10) days after
      the  commencement of the arbitration proceedings, such arbitrator and
      the  third arbitrator shall be appointed by the Chamber in accordance
      with  the  Rules.  Nothing set forth above shall  be  interpreted  to
      prevent  the  parties from agreeing in writing to submit any  dispute
      to  a  single  arbitrator  in lieu of a three  (3)  member  Board  of
      Arbitration.   Upon the completion of the selection of the  Board  of
      Arbitration (or if the parties agree otherwise in writing,  a  single
      arbitrator),  an award or decision shall be rendered within  no  more
      than  thirty  (30) days.  Notwithstanding the foregoing, the  request
      by  either  party  for  preliminary or permanent  injunctive  relief,
      whether   prohibitive  or  mandatory,  shall  not   be   subject   to
      arbitration and may be adjudicated by the courts of the State of  New
      York  or  the U.S. District Court located in New York, New  York,  by
      the   courts  located  wherever  the  party  or  entity  asking   for
      injunctive  relief  is located, or by the courts  located  where  the
      action which gave rise to the claim occurred.

 17.11. Amendments

No  amendment,  addition or deletion to this Agreement shall  be  effective
unless in writing and executed by both parties.

 17.12.  Headings

The  section  headings throughout this Agreement are  for  convenience  and
reference only, and the words contained in them shall in no way be held  to
explain,  modify,  amplify, or aid in the interpretation, constriction,  or
meaning of the provisions of this Agreement.

17.13.  Withholding tax

With  respect to withholding taxes applicable to any payment to be made  by
BEL  to  Galaxy  in application of article of the bilateral  treaty  signed
between  France  and USA on ..., as amended on ..., the  parties  agree  to
comply  with  the  requirements  set forth  in  Form  (and  any  subsequent
amendment  thereof)  in due time in order to avoid  double  taxation.   BEL
shall withhold such taxes from any payments made to Galaxy.

17.14.       Language

All communications made or given pursuant to this Agreement shall be in the
English language.  This English version of this Agreement shall be
controlling and take precedence over any translation hereof.

18. MISCELLANEOUS REGULATORY PROVISIONS

18.1Anti-Boycott and Embargo Regulations Compliance

Each of BEL and Galaxy acknowledges that it is familiar with the various
U.S. anti-boycott and embargo regulations of the U.S. Department of
Commerce and the U.S. Department of the Treasury.  Each of BEL and Galaxy
agrees to comply with the terms therefor, as applicable, and to supply no
information to any person or entity about the other or the other's
personnel's race, religion, sex or national origin, business relationships
with boycotted countries or blacklisted persons, or associations with
charitable or fraternal organizations.

18.2Foreign Corrupt Practices Act Compliance

Galaxy  has apprised BEL of the anti-bribery provisions of the U.S. Foreign
Corrupt Practices Act, as amended 15 U.S.C. 78 dd et seq., ("FCPA"  or  the
<< Act >>). BEL has reviewed with Galaxy the requirements of the FCPA,  the
transactions  prohibited  under the Act, and the  penalties  for  violation
thereof.  BEL acknowledges such appraisal and the receipt of a copy of  the
FCPA.  The FCPA makes it illegal to corruptly make, offer or agree to offer
anything  of  value,  either directly or through an  intermediary,  to  any
foreign   official, foreign political party or official thereof, or foreign
candidate  for  governmental office in order to obtain,  retain  or  direct
business  to  any business enterprise or person, or to obtain  an  improper
advantage.   Each  of  BEL and Galaxy represents that  it  understands  the
purposes, prohibitions and penalties stated in the FCPA.  Each of  BEL  and
Galaxy  and  their Affiliates and/or distributors represents  and  warrants
that  it has not committed any violation of the FCPA, and shall not  commit
any  act  that would place any of the parties to this Agreement in jeopardy
under  the  FCPA.   Violations of the FCPA by any party to  this  Agreement
and/or their Affiliates will not be suggested, encouraged or condoned.

18.3Export Administration Regulations Compliance

In   conformity   with  the  requirements  of  U.S.  Export  Administration
Regulations ("EAR") and other applicable laws and regulations of  the  U.S.
Government  concerning  exports and foreign activities,  each  of  BEL  and
Galaxy  hereby agrees and gives assurance to the other  that it  shall  not
knowingly export or re-export any commodity or otherwise disclose, directly
or  indirectly, any data or information received from the other   which  is
not  otherwise  available to the general public, nor permit  said  data  or
information  to  be  disclosed re-exported to, or  used  in  the  following
countries: Cuba, Iran, Iraq, Libya, North Korea, the Sudan, and Syria,  and
any   Taliban controlled areas of Afghanistan, or other countries,  persons
or  entities,  for  any  end-uses, including  those  related,  directly  or
indirectly,  to  nuclear, chemical or biological weapons or  missiles,  for
which  export  restrictions would apply or may be designated from  time  to
time  under  applicable U.S. law and regulation.  Each of  BEL  and  Galaxy
represents and warrants that it understands the purposes, prohibitions  and
penalties  of  these laws and regulations.  Neither BEL  nor  Galaxy  shall
commit  any  act that would place any party to this Agreement  in  jeopardy
under these laws and regulations.

IN  WITNESS WHEREOF, the parties have caused this Agreement to be  executed
in duplicate by their duly authorized officers or representatives as of the
day and year first written above.

GALAXY NUTRITIONAL FOODS, INC           FROMAGERIES BEL SA

/s/ Christopher J. New                  /s/ Michel P. Troussier
----------------------                  -----------------------
Name : Christopher J. New               Name : Michel P. Troussier
Title : Chief Executive                 Title : Director of Finance
Officer

                                        /s/ Eric de Poncins
                                        -------------------
                                        Name : Eric de Poncins
                                        Title : Head of Strategy & Development

<PAGE>

                                 Exhibit 1

                         Galaxy's Current Products

Formagg(R)
Grand Design
Galaxy Nutritional Foods(R)
Labella's(R)& Design
Lite Bakery(R)
The Lite Bakery(R)& Design
Lite "n" Less(R)& Design
Pizza and Dessert that Doesn't Hurt(R)
Soy Singles(R)
Soyco(R)
Soyco(R)& Design
Soymage(R)
Veggie Nature's Alternative to Milk(TM)
Veggy Singles(R)
Wholesome Valley(R)

<PAGE>

Exhibit 2

                               Galaxy's Logo

<PAGE>

                                 Exhibit 3

                             Pricing Schedule

Prices will be determined by the following:

"Cost" is defined as: Cost of Goods Sold, an allocation of research and
development, General and Administrative Expenses, and Freight to US Port of
shipment.

"Cost of Goods Sold" is determined using the following formula:

                             opening inventory
                       + additions during the year*
                       ----------------------------
                          = goods available for sale
                          -  year- end inventory
                          ----------------------
                           =  cost of goods sold

*Additions during the year includes costs for raw materials and parts,
costs of labor (including both direct labor costs for production workers
and indirect costs for employees who perform general factory functions),
cost of materials and supplies used in the manufacturing process such as
hardware, lubricants, abrasives, etc., and cost of overhead, which includes
rent, utilities, insurance, depreciation, taxes, and maintenance for the
production facility, as well as the cost of supervisory personnel.

"General and Administrative Expense" is defined as expenses incurred in the
general administration of Galaxy, including salaries for executives and
administrative staff, expenses for rent and utilities, travel expenses,
costs of writing and filing reports, costs of accounting and administering
funds, insurance and advertising.

The price of any Product shall be determined as follows:

Price = (M)x(Cost)

M = margin multiplier shall be set on a country-by-country basis with a
target of 1.10 (except that during the first 24 months of this Agreement
Galaxy may agree to an amount less than 1.10 but in no event less than
1.00).  At no time during this Agreement will the margin multiplier be set
below 1.00.

<PAGE>

                                 Exhibit 4

                Minimum Production Quantities for Purchase

The following lists the 16 most purchased Products and the respective
minimum quantities for purchase. During the first 24 months of this
Agreement, Galaxy may accept orders for any Product in quantities less than
such minimum quantity for that Product provided that Galaxy shall have no
obligation to accept any such order if, as determined by Galaxy, the cost
of producing such order exceeds the price for that order.

Minimum shipping container is 20ft POD.

Top 16 SKU's and their respective minimum run/one shift quantities:

1. 66722 Veggie Ched Slice 12 units/8oz. - 3500 cases.
2. 66717 Veggie Yel Am Slice 12/8oz. - 3500 cases
3. 66718 Veggie Pep Jack Slice 12/8oz. - 3500 cases
4. 66721 Veggie Swiss Slice 12/8oz. - 3500 cases
5. 66720 Veggie Mozz Slice 12/8oz. - 3500 cases
6. 66719 Veggie Prov Slice 12/8oz. - 3500 cases
7. 66771 Veggie Ched Shred 12/8.5oz. - 2400 cases
8. 66770 Veggie Mozz Shred 12/8.5oz. - 2400 cases
9. 66773 Veggie Parm/Mozz/Romano Shred 12/6.5oz. - 2400 cases
10. 66774 Veggie MJ/Ched Shred 12/8.5oz. - 2400 cases
11. 66779 Veggie Cream Cheese 12/8oz. - 1350 cases
12. 66723 Veggie Butter 12/8oz. - 1350 cases
13. 66785 Veggie Pep Jack Chunk 12/8oz. - 1840 cases
14. 66737 Veggie Ched Chunk 12/8oz. - 1840 cases
15. 66754 Veggie Mozz Chunk 12/8oz. - 1840 cases
16. 66753 Veggie Parm Topping 12/8oz. - 640 cases

The Minimum Production Quantities for all other Products (on SKU basis)
shall be as determined by Galaxy from time to time.

<PAGE>

Exhibit 5

                         GALAXY NUTRITIONAL FOODS

              GENERAL TERMS AND CONDITIONS OF SALE

          1.   TERMS EXCLUSIVE:  This document, together with the quotation
and  documents  specified therein, constitutes the complete, exclusive  and
final  agreement  of  the  Buyer identified  herein  ("Buyer")  and  Galaxy
Nutritional  Foods,  Inc. ("Seller") and may not  be  added  to,  modified,
superseded or altered except by written agreement or modification signed by
Seller's   president,  vice  president  or  home  office   sales   manager,
notwithstanding any other additional or modifying terms or conditions which
may  now  or in the future appear on Buyer's acknowledgment or other  forms
(all  of which are objected to by Seller without future notification),  and
notwithstanding any shipments, tenders of delivery, acceptance of payments,
or  other  similar acts of Seller.  Notification of objection to additional
(or   different)  terms  is  given  hereby.   Buyer's  acceptance  of   any
performance  by Seller shall be taken as Buyer's acceptance of these  terms
and conditions.

           NO  PERSON (EXCEPT AN OFFICER OF SELLER) IS AUTHORIZED  TO  BIND
SELLER  TO ANY ORDER EXCEPT ACCORDING TO THE TERMS AND CONDITIONS  ON  BOTH
SIDES HEREOF.

           2.    DELIVERY:  Unless otherwise specified herein, delivery  of
the  Products specified herein ("Products") will be F.O.B. U.S.A.  port  of
shipment.  Buyer shall be responsible for obtaining all necessary licenses,
permits  and/or approvals from the appropriate authorities or  governmental
agencies  for Buyer to purchase and receive and for Seller to  deliver  the
Products.   Any  delivery  date  specified  herein  is  approximate   only.
Acceptance of shipment by a common carrier, designated shipper or  licensed
public  truckman, [allocation of Products to Buyer at premises  other  than
Seller's,]  delivery  to Buyer's representative or  designee  (if  Seller's
trucks  and  drivers effect such delivery), or mailing  of  an  invoice  by
Seller  to Buyer, whichever of the foregoing first occurs, shall constitute
tender  of  delivery.  Upon tender of delivery, title shall pass to  Buyer,
subject  to  Seller's right of stoppage in transit and to any  interest  of
Seller  reserved to secure Buyer's payment or performance.  In the instance
of  Products  held  subject to Buyer's instructions or Products  for  which
Buyer  has failed to supply shipping instructions, Seller may invoice Buyer
for  the Products and Buyer agrees to make payment at the maturity  of  the
invoice  so  rendered.   Products invoiced and held at  any  location,  for
whatever reason, shall be at Buyer's risk and Seller may charge for (but is
not  obligated to carry) insurance and storage at prevailing rates.   Buyer
will  accept  and  pay for partial deliveries in accordance  with  contract
prices  and  terms.   If  Buyer has expressed an intention  not  to  accept
delivery  in accordance with any order, no tender of the Products shall  be
necessary  but Seller may, at its option, give notice in writing  to  Buyer
that  Seller  is  ready  and  willing to  deliver  and  such  notice  shall
constitute a valid tender of delivery.

            3.   PRICES: Unless otherwise specified herein, prices  do  not
include  applicable  taxes,  excises,  duties,  quotation  fees  or   other
governmental  impositions which Seller may be required to  pay  or  collect
under  any existing or future law, and any such additional charge shall  be
paid by and/or for the account of Buyer.

          4.   PAYMENT, SECURITY INTEREST:  If the terms of payment include
any  discount  for  prompt payment, such discount terms shall  be  strictly
enforced by Seller.  If there is no specific contrary agreement upon  terms
of  payment stated herein, payment shall be due and payable within 30  days
of  the date of the invoice.  Any payment not made to Seller when due shall
be  subject  to  interest at an annual rate of the greater of  18%  or  the
highest  amount  allowed by law on the unpaid balance  until  paid.   Buyer
shall have no right to offset any amount whatsoever against any payment  or
other  obligation  which Buyer may owe to Seller under  the  terms  hereof.
Seller  reserves  a  security interest in the Products  to  secure  Buyer's
payment  of  the purchase price and any other charges owed  by  Buyer,  and
Buyer agrees that Seller may (but is not obligated to) take such action  as
Seller deems advisable to evidence and perfect such interest and that Buyer
will cooperate with Seller in the taking of such actions including, without
limitation, the signing by Buyer of financing statements.

           5.    CASUALTY  AND AVAILABILITY OF SUPPLIES:  Delivery  of  the
Products  is  contingent upon Seller's ability to obtain the supplies,  raw
materials and services through its regular and usual sources of supply.  If
by  reason of any contingency beyond Seller's control, including  (but  not
limited to) war, governmental requests, restrictions or regulations,  fire,
flood,  casualty,  accident,  or  other  acts  of  God,  strikes  or  other
difficulties  with employees, delay or inability to obtain labor,  material
and  service  through Seller's usual sources, failure  or  refusal  of  any
carrier  to transport materials, delay in transport thereof, or  any  other
similar  occurrence,  Seller  is not able to meet  anticipated  deliveries,
Seller  shall  not  be liable therefor and may, in its  discretion  without
prior  notice  to Buyer, postpone the delivery date(s) under this  document
for  a  time which is reasonable under all the circumstances.  In the event
that  Buyer defers shipment for more than 15 days, in addition to all other
rights of Seller hereunder, Buyer shall be responsible for storage charges.

           6.    INSPECTIONS, ACCEPTANCE, AND RETURNS:  Each delivery shall
be  inspected by Buyer for observable damage and/or non-conformity  at  the
time  of  delivery.   Failure to so inspect shall constitute  a  waiver  of
Buyer's rights of inspection and shall constitute an unqualified acceptance
of  the Products.  If, after such inspection, Buyer attempts to reject  any
Products, Buyer shall fully specify all claimed damage or non-conformity in
a  notice of rejection sent to Seller within ten days of Buyer's receipt of
the   Products.   Buyer's  failure  to  so  specify  shall  constitute   an
unqualified acceptance of the Products and a waiver of that damage or  non-
conformity.  No Products shall be returned to Seller without Seller's prior
written  agreement and any Products returned by Buyer shall be returned  in
the  same  condition  as  when  delivery was effected  by  Seller.   Seller
reserves  the  right to assess a return or restocking charge  for  Products
returned for reasons other than damage or non-conformity.

           7.    LIMITED WARRANTY, WARRANTY DISCLAIMERS AND LIMITATIONS  OF
REMEDIES  AND  LIABILITIES:  Seller warrants that the Products manufactured
by Seller will be free from defects for the period ending on the applicable
expiration date.  Any Products determined by Seller to be defective at time
of delivery will be replaced, at Seller's option at Seller's U.S.A. port of
shipment, shipment prepaid by Buyer, provided Buyer has acted in accordance
with  Paragraph 6 hereof.  No item shall be deemed defective if  such  item
conforms  to approval samples, test runs, or previously accepted  items  or
otherwise  reasonably accommodates Buyer's intended purpose.   Seller  does
not  warrant  against  defects  caused by  erosion,  corrosion,  misuse  or
improper  use or handling or storage, use of the Products not in compliance
with  instructions, or any alteration, in the judgment of Seller, adversely
affects the Products.

           Except  as  set  forth above, Seller makes NO  OTHER  WARRANTIES
concerning  the  Products whatsoever.  SELLER DISCLAIMS  AND  EXCLUDES  ALL
OTHER  EXPRESS  WARRANTIES  AND ALL IMPLIED WARRANTIES,  INCLUDING  WITHOUT
LIMITATION  THE  IMPLIED WARRANTIES OF MERCHANTABILITY AND  FITNESS  FOR  A
PARTICULAR PURPOSE concerning the Products.  Buyer acknowledges and  agrees
that  Seller's obligation described in this Paragraph 6 is the sole  remedy
bargained for by Buyer IN LIEU OF ALL OTHER EXPRESS AND IMPLIED WARRANTIES.
In  no event will Seller's liability exceed the paid purchase price of  the
Products.   Seller's  obligations described  in  this  Paragraph  shall  be
BUYER'S  SOLE  AND EXCLUSIVE REMEDY AGAINST SELLER FOR ANY  LIABILITY  WITH
RESPECT  TO  THE PRODUCTS WHETHER ANY CLAIM FOR RECOVERY IS BASED  UPON  OR
ARISES  OUT  OF  THEORIES OF CONTRACT, NEGLIGENCE, TORT  (INCLUDING  STRICT
LIABILITY)  OR  OTHERWISE.   Buyer agrees that NO  OTHER  REMEDY  SHALL  BE
AVAILABLE  to  Buyer and that IN NO EVENT SHALL SELLER BE  LIABLE  FOR  ANY
INCIDENTAL OR CONSEQUENTIAL DAMAGES, including without limitation  loss  of
income,  loss  of  time, loss of sales, cost or replacement  items,  claims
asserted  by Buyer's customers, injury to personal property, or  injury  to
any  person,  whether  or  not  occasioned  by  Seller's  negligence.    No
accommodation by Seller to Buyer, whether by attempt, effort or promise  to
repair  or  replace,  and  whether  for sales  policy  or  otherwise  shall
establish  any  additional  liability  of  Seller  or  any  contract   term
inconsistent with the terms herein.

      A suit based on any cause of action must be commenced within one year
from the date of delivery.

           8.  CANCELLATION:  Seller may cancel or terminate all or part of
the  contract  arising from or evidenced by this document immediately  upon
the  happening of any of the following: Buyer's material delinquency of any
of  its  obligations  hereunder  or with respect  to  any  other  order  or
transaction  with  Seller; the insolvency of Buyer; the  appointment  of  a
receiver under Title 11 U.S.C., as amended (the "Bankruptcy Code"), or  the
commencement of a case under any chapter of the Bankruptcy Code for, by  or
against  Buyer; Buyer's suspension or termination of business or assignment
for  the benefit of creditors; or any event, whether or not similar to  the
foregoing,  which  in  Seller's good faith belief  materially  impairs  the
prospect of payment or performance by Buyer hereunder.  Seller's rights  to
cancel  or  terminate set forth herein may be exercised by  Seller  without
liability.

          10.  STATUTORY COMPLIANCE:  Seller continues to attempt to comply
with all applicable laws, standards and specifications.  However, Seller is
not  responsible for compliance with any laws, standards or  specifications
applicable  to  the  Products,  their delivery,  use,  handling,  labeling,
transportation  or disposal, whether of general or particular  application,
unless  Buyer  has  furnished  specific written  notice  thereof  prior  to
Seller's entry of Buyer's order and the President of Seller acknowledges in
writing receipt and acceptance as a part of the order such law, standard or
specification.

           11.   PERMISSIBLE  VARIATIONS:  Seller has  the  right,  without
giving notice to Buyer, prior to the delivery of Products to Buyer to  make
any  changes  in the composition of the Products which, in the  opinion  of
Seller,  does not affect the general characteristics or properties  of  the
Products.   In  addition, Seller may make any change or  variation  in  the
Products   which   is   within  governmental  or  industry   standards   or
specifications applicable at the time of manufacture without giving  notice
to Buyer.  Buyer will accept any Products which may incorporate any changes
in  the  composition or specifications, and any increase in price resulting
from such change will be paid by Buyer.

           12.   REPRESENTATIONS BY AGENT OR REPRESENTATIVE:  The terms  of
this  document  shall  govern the liability and obligations  of  Seller  in
regard  to the sale of Products, whether the sale was procured directly  by
Seller or indirectly through an authorized sales representative.  No agent,
employee  or representative of Seller has any authority to bind  Seller  to
any  additional  or contrary affirmation or representation  concerning  the
Products sold under this document.  Unless an affirmation or representation
is specifically included within this document or is in writing signed by an
officer  of  Seller, it shall not be enforceable by Buyer or by any  person
claiming by or through Buyer.

           13.   TERMINATION:   Buyer may terminate the sales contract,  in
whole or in part, for Buyer's convenience upon written notice to Seller, in
which  event  Seller  shall be entitled to reasonable  termination  charges
consisting  of a percentage of the contract price reflecting the percentage
of  the  work  performed prior to receipt of Buyer's notice of  termination
plus  actual  costs resulting from termination (including, but not  limited
to,  unrecoverable  fixed  overhead such as  termination  and  reassignment
expenses).

           14.   OWNERSHIP:     The specifications, drawings, manufacturing
data and other information between Buyer and Seller in connection with  the
contract  are  the property of the originating party and are  disclosed  in
confidence in the condition that they are not to be reproduced, copied,  or
used for any purpose detrimental to the interest of the other.

           15.   INSURANCE:     Seller's standard Insurance Statement shall
apply, which Seller shall furnish to Buyer upon request.

           16.   MISCELLANEOUS:   All  sales are  subject  to  approval  by
Seller's  credit  department.  Orders entered on Seller's books  cannot  be
countermanded nor deliveries deferred except with Seller's written  consent
and  upon  terms that will indemnify Seller against all loss.  The contract
arising  hereunder  will be governed by the local  laws  of  the  State  of
Florida.  If any of the provisions hereof shall be held invalid, illegal or
unenforceable, the validity, legality and enforceability of  the  remaining
provisions shall in no way be affected or impaired thereby.

           No  right or interest in the contract arising from this document
shall  be  assigned  by Buyer and no delegation of any obligation  owed  by
Buyer shall be made without the prior written permission of Seller.

           The  individual  rights and remedies of Seller  reserved  herein
shall  be  cumulative  and  additional to any  other  or  further  remedies
provided  in  law or equity.  Waiver by Seller of performance  or  inaction
with  respect  to  Buyer's breach of any provision hereof,  or  failure  of
Seller  to  enforce any provision hereof which may establish a  defense  or
limitation  of liability, shall not be deemed a waiver of future compliance
therewith  or  a course of performance modifying such provision,  and  such
provision shall remain in full force and effect as written.

           As  used  herein,  "Buyer" and "Seller" include  the  respective
heirs,   executors,  personal  representatives,  successors  and  permitted
assigns of each.

      Where  these General Terms and Conditions of Sale conflict with  that
certain  Master Distribution  and License Agreement  (the   << Distribution
Agreement >>, dated May 22, 2003, by and  among Buyer and Seller, the terms
of the Distribution Agreement shall take precedence and control.

          IN ALL CASES CLERICAL ERRORS ARE SUBJECT TO CORRECTION.

Form # _____________
Rev. Date __________

            Special Terms and Conditions of International Sales

           For  sales where the Buyer is in a country other than the United
States of America, the following shall apply in addition to (and shall take
precedence  where in direct conflict with) the GENERAL TERMS AND CONDITIONS
OF  SALE of Galaxy Nutritional Foods, Inc. ("Seller").  Where these Special
Terms  and  Conditions of International Sales conflict  with  that  certain
Master Distribution and License Agreement (the <<Distribution Agreement >>,
dated  May  22,  2003,  by and among Buyer and Seller,  the  terms  of  the
Distribution Agreement shall take precedence and control.

           1.    Shipment:  Delivery will be FOB US Port of Shipment  (INCO
Terms 2000).  All shipments hereunder will be made in the Seller's standard
shipping  packages  to  Buyer  at Buyer's address  as  set  forth  in  this
Agreement.   Unless otherwise instructed in writing by Buyer,  Seller  will
select  the  carrier(s).  Title and risk of loss to the Products  purchased
under this Agreement shall pass to Buyer upon delivery thereof to the first
carrier.

       2.       Taxes and Duties:  Buyer shall bear all applicable federal,
state,  municipal and other government taxes (such as sales,  value  added,
use,  or similar taxes); all customs duties, and similar charges (any agent
appointed for the purpose of importation of the Products shall be the agent
of Buyer not Seller); and all personal property taxes assessable on or with
respect to the Products.

      3.    Customs Clearance:  Buyer shall perform the functions necessary
to  clear  the Products through all non-United States customs  and  similar
controls, and it shall arrange for the transportation of the Products  from
the Port of Entry to the Buyer.

       4.     Acceptance:  Buyer shall inspect all Products  promptly  upon
receipt  thereof  at the shipping destination and may reject  any  Products
which fail in any significant respect to meet its specifications prevailing
on  the date of delivery.  Products not rejected by written notification to
Seller  within  30 days of receipt shall be deemed to have  been  accepted.
Upon  Seller's request, rejected Products shall be returned freight prepaid
to  Seller's place of manufacture and shall be shipped within  10  days  of
Seller's  request.  After receipt by Seller of properly rejected  Products,
Seller  shall,  at  its option replace properly rejected Products.   Seller
will  prepay transportation charges back to Buyer and shall reimburse Buyer
for  any reasonable costs of transportation incurred by Buyer in connection
with  the return to Seller of properly rejected Products.  Otherwise, Buyer
shall pay transportation charges in both directions.

      5.    Payment:  All payments for Products ordered hereunder shall  be
made  within  30  days of the date of Seller's invoice to  Buyer,  in  U.S.
Dollars.    All  exchange, interest, banking, collection or  other  charges
shall  be  at the sole expense of Buyer.  Otherwise, payment terms  in  the
Terms and Conditions of Sale of Seller apply.

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