Document:

PROMISSORY NOTE

 

EXHIBIT 10.25

PROMISSORY NOTE

		
	 
	 

	January 7, 2019

	$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 January 7, 2020 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:

	 

	 
	 
	Edward S. Vittoria, Chief Executive Officer

3NOTE FORGIVENESS

 

EXHIBIT 10.26

Dominick A. Telesco

150 Via Bellaria

Palm Beach, FL 33480

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 16, 2017 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 16, 2018 (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, 2018.

		
	 
	 

	 
	Dominick A. TelescoExchange Agreement

 

EXHIBIT 10.27

DEBT EXCHANGE AGREEMENT

THIS DEBT EXCHANGE AGREEMENT (“Agreement”) is made and entered into this 25th day of March, 2019, by and between Puradyn Filter Technologies Incorporated, a Delaware corporation with its principal place of business located at 2017 High Ridge Road, Boynton Beach, Florida  33426 (the “Corporation”), and Joseph V. Vittoria, an individual with his principal place of business located at 2017 High Ridge Road, Boynton Beach, Florida  33426 (the “Noteholder”).

RECITALS:

WHEREAS, the Corporation owes the Noteholder an aggregate of $8,395,132 including the principal amount of $7,989,622 and accrued but unpaid interest of $395,510, which such amounts become due and payable on December 31, 2019 (the “Obligations”) pursuant to the terms and conditions of that certain letter agreement dated March 28, 2002, as amended from time to time (the “Loan Agreement”).

WHEREAS, the Corporation has requested that the Noteholder extend the maturity date of the Obligations for an additional two year period maturing on December 31, 2021 and in exchange therefore has agreed to grant the Noteholder a security interest in the Corporation’s assets and the Noteholder has agreed to such request.

WHEREAS, the Noteholder is an executive officer, member of the Board of Directors and principal shareholder of the Corporation.

WHEREAS, the Corporation and the Noteholder desire to memorialize in writing the terms, provisions and conditions of the foregoing agreement related to the Obligations.

AGREEMENT:

NOW, THEREFORE, in consideration of the mutual promises, covenants, agreements, representations and warranties set forth hereinafter, $10.00 and other good and valuable consideration , the receipt, adequacy and sufficiency of which the Corporation and the Noteholder hereby acknowledges and subject to the terms, provisions and conditions hereof, each of the Corporation and the Noteholder hereby agrees as follows:

ARTICLE ONE

EXCHANGE OF LOAN AGREEMENT FOR SECURED PROMISSORY NTOE

Subject to the terms of this Agreement, the Corporation shall issue the Noteholder a senior secured promissory note in the principal amount of the Obligations (the “Note”) in the form attached hereto as Exhibit A and incorporated herein by such reference in full and complete satisfaction of the Obligations and upon which the Loan Agreement shall be deemed terminated by the parties.  

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ARTICLE TWO

REPRESENTATIONS, WARRANTIES AND AGREEMENTS

OF THE NOTEHOLDER

The Noteholder hereby represents, warrants and agrees to and with the Corporation that:  

2.1

Capacity to Enter into Agreement.  The Noteholder has full right, power and authority to execute and deliver this Agreement and all other agreements, documents and instruments to be executed in connection herewith and perform his obligations hereunder and thereunder.  When this Agreement and all other agreements, documents and instruments to be executed by a Noteholder in connection herewith are executed by the Noteholder and delivered to the Corporation, this Agreement and such other agreements, documents and instruments will constitute the valid and binding agreements of the Noteholder enforceable against the Noteholder in accordance with their respective terms, except as such enforceability may be limited by or subject to (a) any bankruptcy, insolvency, reorganization, moratorium or other similar laws relating to creditors' rights generally and (b) general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law).  

2.2

Conflicts.  The execution, delivery, and consummation of the transactions contemplated by this Agreement will not (a) violate, conflict with or result in the breach or termination of, or otherwise give any other contracting party the right to terminate, or constitute a default (by way of substitution, novation or otherwise) under the terms of, any contract to which the Noteholder is a party or by which the Noteholder is bound or by which any of the assets of the Noteholder is bound or affected, (b) violate any judgment against, or binding upon, the Noteholder or upon the assets of the Noteholder, or (c) result in the creation of any lien, charge or encumbrance upon any assets of the Noteholder pursuant to the terms of any such contract.  

2.3

Consents.  No consent from, or other approval of, any governmental entity or any other person, which has not been obtained, is necessary in connection with the execution, delivery, or performance of this Agreement by the Noteholder.  

ARTICLE THREE

REPRESENTATIONS, WARRANTIES, AND AGREEMENTS

OF THE CORPORATION

The Corporation hereby represents, warrants, and agrees to and with the Noteholder that:

3.1

Capacity to Enter into Agreement.  The Corporation has full right, power and authority to execute and deliver this Agreement and all other agreements, documents and instruments to be executed in connection herewith and perform its obligations hereunder and thereunder.  The execution and delivery by the Corporation of this Agreement and all other agreements, documents and instruments to be executed by the Corporation in connection herewith have been authorized by all necessary action by the Corporation.  When this Agreement and all other agreements, documents and instruments to be executed by the Corporation in connection herewith are executed by it and delivered to the Noteholder, this Agreement and such other agreements, documents and instruments will constitute the valid and binding agreements of the 

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Corporation enforceable against it in accordance with their respective terms, except as such enforceability may be limited by or subject to (a) any bankruptcy, insolvency, reorganization, moratorium or other similar laws relating to creditors' rights generally and (b) general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law).  

3.2

Conflicts.  The execution, delivery, and consummation of the transactions contemplated by this Agreement will not (a) violate, conflict with or result in the breach or termination of, or otherwise give any other contracting party the right to terminate, or constitute a default (by way of substitution, novation or otherwise) under the terms of, any contract to which the Corporation is a party or by which the Corporation is bound or by which any of the assets of the Corporation are bound or affected, (b) violate any judgment against, or binding upon, the Corporation or upon its assets, (c) except as contemplated by this Agreement, result in the creation of any lien, charge or encumbrance upon any assets of the Corporation pursuant to the terms of any such contract, or (d) violate any provision in the charter documents, bylaws or any other agreement affecting the governance and control of the Corporation.  

3.3

Consents.  No consent from, or other approval of, any governmental entity or any other person, which has not been obtained, is necessary in connection with the execution, delivery, or performance of this Agreement by the Corporation.

ARTICLE FOUR

ADDITIONAL AGREEMENTS

Following the date hereof, each party shall execute and deliver such other documents, and take such other actions, as may be reasonably requested by the other party to complete the transactions contemplated by this Agreement.  

ARTICLE FIVE

SURVIVAL

All of the representations and warranties made by the parties hereto in this Agreement or pursuant hereto, shall be continuing and shall survive the closing hereof and the consummation of the transactions contemplated hereby, notwithstanding any investigation at any time made by or on behalf of any party hereto.  

ARTICLE SIX

MISCELLANEOUS

6.1

Notices.  Any notices, requests, demands, or other communications herein required or permitted to be given shall be in writing and may be personally served or sent by United States mail and shall be deemed to have been given if personally served, when served, or if mailed, when deposited in the mail and shall be deemed to have been received if personally served, when served, or if mailed, on the third business day after deposit in the United States mail with postage pre-paid by certified or registered mail and properly addressed.  As used in this Agreement, the term “business day” means days other than Saturdays, Sundays, and holidays recognized by Federal banks.  For purposes of this Agreement, the addresses of the parties hereto shall be the addresses as 

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set forth on the signature pages of this Agreement until a party subsequently notifies the other party in writing of a change of address.  

6.2

Counterparts.  This Agreement may be executed in any number of counterparts and each such counterpart shall be deemed to be an original instrument, but all such counterparts together shall constitute but one and the same instrument.

6.3

Amendments and Waivers.  This Agreement may be amended, modified, or superseded only by written instrument executed by all parties hereto.  Any waiver of the terms, provisions, covenants, representations, warranties, or conditions hereof shall be made only by a written instrument executed and delivered by the party waiving compliance.  Any waiver granted by a corporate party hereto shall be effective only if executed and delivered by the chief executive officer, president, or any vice president of such party.  The failure of any party at any time or times to require performance of any provision hereof shall in no manner affect the right to enforce the same.  No waiver by any party of any condition, or of the breach of any term, provision, covenant, representation, or warranty contained in this Agreement in one or more instances shall be deemed to be or construed as a further or continuing waiver of any such condition or breach or a waiver of any other condition or the breach of any other term, provision, covenant, representation, or warranty.

6.4

Time of Essence.  Time is of the essence in the performance of this Agreement.

6.5

Captions.  The captions contained in this Agreement are solely for convenient reference and shall not be deemed to affect the meaning or interpretation of any Article, Section, or para­graph hereof.

6.6

Entire Agreement.  This Agreement sets forth the entire agreement and understanding of the parties with respect to the transactions contemplated hereby, and supersedes all prior agreements, arrangements, and understandings relating to the subject matter hereof.

6.7

Successors and Assigns.  All of the terms, provisions, covenants, representations, warranties, and conditions of this Agreement shall be binding upon and shall inure to the benefit of and be enforceable by the parties hereto and their respective heirs, legal representatives, assigns, and successors.  

6.8

Knowledge, Gender, and Certain References.  A representation or statement made herein to the knowledge of any corporate party refers to the knowledge or belief of the companies' directors, officers, and attorneys, regardless of whether the knowledge of such person was obtained outside of the course and scope of his corporate employment or duties, and regardless of whether any such person's interests are adverse to such entity in respect of the matters as to which his knowledge is attributed.  Whenever from the context it appears appropriate, each term stated in either the singular or the plural shall include both the singular and the plural, and pronouns stated in the masculine or the neuter gender shall include the masculine, the feminine and the neuter gender.  The terms “hereof,” “herein,” or “hereunder” shall refer to this Agreement as a whole and not to any parti­cular Article, Section, or paragraph hereof.

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6.9

Applicable Law.  This Agreement shall be governed exclusively by its terms and by the laws of the State of Florida.  The parties acknowledge and agree that the 15th Judicial Circuit in Florida, Palm Beach County, Florida, shall be the venue and exclusive proper forum in which to adjudicate any case or controversy arising either, directly or indirectly, under or in connection with this Agreement and the parties further agree that, in the event of litigation arising out of or in connection with this Agreement in these courts, they will not contest or challenge the jurisdiction or venue of these courts. 

6.10

Costs, Expenses and Fees.  Each party hereto agrees hereby to pay all costs, expenses, and fees incurred by it in connection with the transactions contemplated hereby, including, without limitation, all attorneys' and accountants' fees.  

6.11

Role of Counsel.  The Noteholder acknowledges his understanding that this Agreement was prepared at the request of the Corporation by Pearlman Law Group LLP, its counsel, and that such firm did not represent the Noteholder in conjunction with this Agreement or any of the related transactions.  The Noteholder, as further evidenced by his signature below, acknowledges that he has had the opportunity to obtain the advice of independent counsel of his choosing prior to his execution of this Agreement and that he has availed himself of this opportunity to the extent he deemed necessary and advisable.  

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first above written.

			
	 
	 
	 

	 

	Puradyn Filter Technologies Incorporated

	 

	 

	 

	 

	By:

	/s/ Edward S. Vittoria

	 

	 

	Edward S. Vittoria, Chief Executive Officer

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 
	/s/ Joseph V. Vittoria

	 

	 

	Joseph V. Vittoria

5

 

Exhibit A

SENIOR SECURED PROMISSORY NOTE

1

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