Document:

NOTE FORGIVENESS

 

EXHIBIT 10.18

NOTE FORGIVENESS

For value received, the undersigned DOMINICK A. TELESCO (the "Lender"), hereby forgives all principal and interest due under that certain Recourse Negotiable Promissory Note dated November 18, 2016 in the principal amount of $25,000 from Puradyn Filter Technologies Incorporated (the "Borrower"), a copy of which is attached hereto as Exhibit A and incorporated herein by such reference (the "Note").  The Lender hereby confirms that (a) this document memorializes his prior oral forgiveness of the Note effective November 18, 2016 (the "Effective Date"), (b) the Lender never made any demands to the Borrower for payment of all or any portion of the Note, and the Note was never in default under its terms, and (c) such Note and any and all rights of the Lender thereunder have not been sold, transferred, hypothecated or otherwise assigned to any third parties.

IN WITNESS WHEREOF, the undersigned as executed this Note Forgiveness on the 1st day of December, 2017.

		
	 
	 

	 
	Dominick A. TelescoAMENDMENT NO. 2 TO DISTRIBUTORSHIP AGREEMENT

 

EXHIBIT 10.19

AMENDMENT NO. 2 

TO DISTRIBUTORSHIP AGREEMENT

THIS AMENDMENT NO. 2 TO DISTRIBUTORSHIP AGREEMENT is dated February 28, 2018, effective September 7, 2017, by and between PURADYN FILTER TECHNOLOGIES INCORPORATED (“PFTI”) and DNOW L.P. (“Distributor”).

RECITALS

A.

PFTI and Distributor have previously entered into that certain Distributorship Agreement dated December 14, 2015 (“Initial Agreement”), as amended by Amendment No. 1 dated September 7, 2017 (“Amendment No. 1”).

B.

PFTI and Distributor desire to amend and restate Amendment No. 1 in its entirety.

C.

In consideration of the mutual promises set out in this Amendment No. 2, and other good and valuable consideration, the receipt and sufficiency of which is acknowledged, PFTI and Distributor agree follows.

AGREEMENT

1.

SECTION 1 – Rights Granted.

PFTI grants to Distributor an Exclusive RIGHT on the terms and conditions set forth herein to purchase inventory, promote and resell “PFTI Products for the Oil and Gas Industry” (as defined below) globally. Also, PFTI grants to Distributor a Non-Exclusive RIGHT on the terms and conditions contained below to purchase inventory, promote and resell any other PFTI product other than the PFTI Products for the Oil and Gas industry (the “PFTI Other Products”).

From the effective date of this Amendment No. 2 the following responsibilities regarding PFTI Products for the Oil and Gas Industry shall apply to PFTI:

a)

PFTI shall turn over all Oil and Gas Industry accounts to the Distributor;

b)

PFTI shall direct all inquiries related to the Oil and Gas Industry to Distributor;

c)

All installation kits designed for the Oil and Gas Industry will be sold exclusively through Distributor;

d)

PFTI shall continue to provide sales and technical support of PFTI Products for the Oil and Gas Industry; 

e)

PFTI shall notify all current PFTI’s distributors dealing in the Oil and Gas Industry that Distributor is now PFTI’s Master Distributor for this industry, and all PFTI Products for the Oil and Gas Industry will be purchased through Distributor; and

f)

An incentive program will be used to compensate the Distributor for the difference between the price of product currently being charged by PFTI offered to the Distributor for the Oil and Gas Industry and the wholesale price currently available.

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2.

SECTION 2 – Products.

As used in this Amendment No. 2, the term “PFTI Products for the Oil and Gas Industry” shall mean the products, related service parts, and accessories for the Oil and Gas Industry manufactured and/or sold by PFTI. 

“PFTI Products for the Oil and Gas Industry” and “PFTI Other Products” together shall mean “PFTI Products”.

PFTI shall provide adequate information and training to Distributor’s sales personnel to ensure that they are properly trained and informed with regard to the PFTI Products as well as provide technical information reasonably necessary for preparation of quotes and service work.

3.

SECTION 3 – Terms of Sale.

All sales of PFTI Products to Distributor shall be made pursuant to this Amendment No. 2 and Distributor’s Conditions of Purchase. PFTI standard terms are net 30 days from invoice receipt. PFTI agrees to properly pack all items for shipment in accordance with its customary practices. Title and risk of loss shall be borne by Distributor after delivery and acceptance of such PFTI Products to Distributor. The carrier will be selected according to the instructions in the Distributor’s purchase order and shipment scheduled by PFTI, unless Distributor requests a reasonable alternative that does not negatively affect or delay shipment. All orders are subject to acceptance by PFTI.

Any tax, license, fee, assessment, customer duty, excise or imposition levied or imposed by any present or future law of any governmental authority shall be the responsibility of the party incurring same.

4.

SECTION 4 – Payment.

Distributor shall pay all charges as shown on each invoice within 30 days of the invoice receipt, or per other terms as may be granted by PFTI from time to time.  PFTI may reserve the right to withhold further shipments to, or refuse orders from, distributor until past due amounts are received by PFTI.

5.

SECTION 5 (c) – Order Processing and Returns.

c. 

PFTI will accept returns of PFTI Products that are defective at the time of sale to Distributor or prove defective during the warranty period. PFTI will also allow Distributor to return saleable goods to PFTI, subject to the conditions set forth in Section 10 herein.

6.

SECTION 10 – Returns.

Distributor may return PFTI Products once a year for credit against future purchase of PFTI Products. Returns are subject to the following conditions: 

6.1 

PFTI Product in salable condition, subject to PFTI inspection before acceptance, and subject to a 20% restocking charge if returned product is not in salable condition.  Other conditions that might warrant a restocking charge will be discussed by the parties.

6.2 

Credits for returns will be issued at the Distributor price in effect at the time the product was originally purchased, less any applicable discounts.

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7.

NEW SECTION 22 – Change in PFTI’s Ownership.

In case of any sale, transfer or relinquishment, voluntary or involuntary, by operation of law or otherwise, by PFTI of a 50% interest in the direct or indirect voting securities of PFTI (a “PFTI Change of Control”) after the date hereof, Distributor shall have the option to terminate this Agreement by written notice to PFTI.  The foregoing notwithstanding, there shall be no PFTI Change of Control for interfamilial transfers by or among the family of Joseph V. Vittoria, inclusive of issuances by PFTI. If Distributor decides to continue with the Agreement despite the PFTI Change of Control, the new management of PFTI shall honor all the terms of this Agreement including but not limited to Distributor’s condition as exclusive distributor of PFTI Products for the Oil and Gas industry globally.

8.

Except as expressly amended by this Amendment No. 2, all other terms and conditions of the Initial Agreement shall remain in full force and effect. This Amendment No. 2, together with the Initial Agreement, constitutes the entire agreement and understanding between the parties, concerning the subject matter thereof.

The parties have executed this amendment in duplicate as evidenced by the following signatures of authorized representatives of the parties.

		
	PURADYN FILTER TECHNOLOGIES INCORPORATED

	DNOW L.P. by its general partner Wilson International, Inc.

	 
	 

	By: /s/ Kevin Kroger

	By: /s/ Jim Owsley

	Name: Kevin Kroger

	Name: Jim Owsley

	Title: President & COO

	Title: VP Supply Chain

3PROMISSORY NOTE

 

EXHIBIT 10.20

PROMISSORY NOTE

		
	 
	 

	November 17, 2017

	$25,000

	Boynton Beach, Florida

	 

FOR VALUE RECEIVED, the undersigned, PURADYN FILTER TECHNOLOGIES INCORPORATED, a Delaware corporation (the “Maker”) having a business address at 2017 High Ridge Road, Boynton Beach, FL  33426, hereby promises to pay to the order of DOMINICK A. TELESCO, an individual (the “Payee” or “Holder”) having a business address at 150 Via Bellaria, Palm Beach, FL  33480, at the date of maturity set forth below, the principal amount of twenty-five thousand dollars ($25,000), together with interest on the unpaid principal amount at the rate of 5% per annum, 

1.

Payments of Interest and Principal.  All principal and accrued interest shall be due and payable on November 16, 2018 the ("Maturity Date").  Interest may be paid in cash or shares of the Maker's common stock at the option of the Maker.  Any such shares shall be valued at the fair market value of the Maker's common stock at the date of issuance.  All payments made hereunder shall be applied as made first to the payment of interest then due, and the balance of said payment shall be applied to the payment of the principal sum.

2.

Prepayment.  From and after the date hereof, Maker shall have the option to prepay all, but not in part, the principal balance, together with accrued interest on the principal amount, of this Note.  There is no prepayment penalty.  

3.

Default.  The occurrence of any of the following shall constitute an event of default (“Event of Default”):

a.

Failure to Pay.  Maker fails to pay, when due, any of the obligations provided for in this Note at their due date, within two (2) business days follow written notice from the Payee to the Maker of the failure to timely pay the Note;

b.

Failure to Perform.  Maker fails to perform or observe any material covenant, term or condition of this Note, and such failure continues unremedied for a period of ten (10) days after written or facsimile notice from Payee to Maker of such failure;

c.

Petition By or Against Maker.  There is filed by or against Maker any petition or complaint with respect to its own financial condition under any state or federal bankruptcy law or any amendment thereto (including, without limitation, a petition or reorganization, arrangement or extension of debts) or under any other similar or insolvency laws providing for the relief of debtors; or

d.

Appointment of Receiver.  If proceedings for the appointment of a receiver, trustee, liquidator or custodian of the Maker or of all or a substantial part of the property thereof, or an involuntary case or other proceeding seeking liquidation, reorganization or other relief with respect to the Maker or the debts thereof under any bankruptcy insolvency or other similar law now or hereafter in effect shall be commenced and an order for relief entered or such proceeding shall not be dismissed or discharged within sixty (60) days of commencement; or

 

4.

Remedies.  Upon the occurrence of an Event of Default and for so long as such default is continuing:

a.

The total amount of: (a) the principal amount of this Note and all accrued but unpaid interest thereon; and (b) interest on the foregoing sums, at the rate of one and one-half percent (1 1⁄2%) per month, but not greater than the highest rate permitted by law, from said occurrence until paid in full (the “Default Amount”) shall, at the option of Payee, become immediately due and payable without notice or demand; and

b.

Payee may exercise any of the other remedies provided under applicable laws.

5.

Cumulative Remedies; Waivers.  No remedy referred to herein is intended to be exclusive, but each shall be cumulative and in addition to any other remedy referred to above or otherwise available to Payee at law or in equity.  No express or implied waiver by Payee of any default or Event of Default hereunder shall in any way be, or be construed to be, a waiver of any future or subsequent default or Event of Default.  The failure or delay of Payee in exercising any rights granted it hereunder under any occurrence of any of the contingencies set forth herein shall not constitute a waiver of any such right upon the continuation or recurrence of any such contingencies or similar contingencies, and any single or partial exercise of any particular right by Payee shall not exhaust the same or constitute a waiver of any other right provided herein.

6.

Costs and Expenses.  Maker shall be liable for all costs, charges and expenses incurred by Payee by reason of the occurrence of any Event of Default or the exercise of Payee’s remedies with respect thereto.

7.

Miscellaneous.  

a.

Waivers.  No waiver of any term or condition of this Note shall be construed to be a waiver of any succeeding breach of the same term or condition.  No failure or delay of Payee to exercise any power hereunder, or it insists upon strict compliance by Maker of any obligations hereunder, and no custom or other practice at variance with the terms hereof shall constitute a waiver of the right of Payee to demand exact compliance with such terms.

b.

Invalid Terms.  In the event any provision contained in this Note shall, for any reason, be held invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provision of this Note, and this Note shall be construed as if such invalid, illegal or unenforceable provision had never been contained herein.

c.

Successors.  This Note shall be binding upon Maker, its legal representatives, successors and assigns, and inure to the benefit of Payee, its legal representatives, successors and assigns.

d.

Controlling Law.  This Note shall be read, construed and governed in all respects in accordance with the laws of the State of Florida.

e.

Amendments.  This Note may be amended only by an instrument in writing and executed by the party against which enforcement of the amendment is sought.

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8.

Notices.  All notices, request, demands and other communications required or permitted to be given hereunder shall be sufficiently given if address to the addresses set forth above and posted in the U.S. Mail by certified or registered mail, return receipt requested or by overnight mail, including appropriate receipts.  Any party may change said address by giving the other party hereto notice of such change of address.  Notice given as hereinabove prescribed shall be deemed given on the date of its deposit in the U.S. Mail or with the overnight delivery service.

9.

Headings.  All section and subsection headings herein, wherever they appear, are for convenience only and shall not affect the construction of any terms herein.

IN WITNESS WHEREOF, the undersigned has caused this Note to be executed by its duly authorized officer and its seal affixed hereto, as of the day and year first above written.

			
	 
	PURADYN FILTER TECHNOLOGIES INCORPORATED

	 
	 
	 

	 
	 
	 

	 
	By:

	 

	 
	 
	Joseph V. Vittoria, Chairman and Chief Executive Officer

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