Document:

Exhibit 10.14

                       SEPARATION AND SETTLEMENT AGREEMENT

This Separation and Settlement  Agreement (the  "Agreement") is made and entered
into by and between  Christopher J. New (the "Employee") and Galaxy  Nutritional
Foods, Inc., a Florida corporation (the "Company").

                              W I T N E S S E T H :
                              - - - - - - - - - - -

         WHEREAS,  Employee was  employed by the Company as its Chief  Marketing
Officer and Vice  President of Strategy and currently is employed by the Company
as its Chief Executive Officer;

         WHEREAS,  Employee  is also a  member  of the  Corporation's  Board  of
Directors (the "Board");

         WHEREAS,  Employee  and  the  Company  enter  into  this  Agreement  in
connection with the Employee's resignation.

         NOW THEREFORE,  in  consideration  of the premises and mutual  promises
contained  herein and other good and  valuable  consideration,  the  receipt and
sufficiency of which are hereby acknowledged, it is agreed as follows:

1. Separation Date. Employee hereby resigns from his employment with the Company
and his position on the Board effective the date hereof (the "Separation Date").

2. Confidentiality of Company Information.  Employee understands and agrees that
in the  course  of his  employment  with  the  Company,  Employee  has  acquired
confidential  information  and trade secrets  concerning  the  operations of the
Company,   the  Company's   owners,   parents,   subsidiaries   and   affiliates
(collectively,  the  "Companies")  and the Companies'  personnel,  future plans,
finances,  products,  customers,  suppliers and methods of doing business, which
information  Employee  understands and agrees would be extremely damaging to the
Companies if disclosed to a competitor or made  available to any other person or
corporation.  Employee  understands  that such  information has been divulged to
Employee  in  confidence  and  Employee  agrees  that  Employee  will  keep such
information  about the  Company  secret and  confidential,  except (a) as may be
required to effectuate the purposes  herein,  (b) as may be necessary to enforce
the terms of this  Agreement,  or (c) as may be  required to be  disclosed  by a
court or  governmental  authority,  provided  that the Employee will provide the
Company prompt notice of a court's or governmental  authority's request for such
disclosure.

         Except (a) as may be required to effectuate the purposes herein, (b) as
may be  necessary  to  enforce  the  terms of this  Agreement,  or (c) as may be
required to be disclosed by a court or governmental  authority,  Employee agrees
that any and all information which Employee has made,  developed,  originated or
acquired either  individually or jointly with any other person or persons at any
time during the period of employment by the  Companies  prior to the  Separation
Date, which relates in any way to the business or type of business engaged in by
the Companies is the property of the  Companies and is to be kept  confidential,
unless such  information is or becomes  generally  available to the public other
than as a  result  of an  improper  disclosure  by  Employee.  Such  information
includes,  but is not  limited  to all of the  Company's  concepts,  techniques,
processes,   systems,   devices,   charts,   manuals,   price  lists,   payroll,
administrative  methods and information and improvements  thereto; the names and

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identities of all of the Company's  clients,  owners,  lenders,  purchasers  and
suppliers; the names, addresses,  telephone number,  qualifications,  education,
accomplishments,  experience  and resumes of all persons who are employed by the
Company,  for either or both  permanent  and temporary  jobs,  the Company's job
order  specifications;  and all other  information or materials which may give a
competitive  advantage  to a  competitor  of the Company  (collectively,  to the
extent such  information  is not or does not become  generally  available to the
public  other  than  as  a  result  of  an  improper   disclosure  by  Employee,
"Confidential  Information").  Employee  agrees not to  reveal,  divulge or make
known to any person,  firm or  corporation  such  Confidential  Information  and
understands that if he discloses to others,  uses for his own benefit or for the
benefit of any person or entity other than  Companies,  copies or makes notes of
any such Confidential Information, such conduct will constitute a breach of this
Agreement.  Notwithstanding the foregoing,  the Employee shall not be prohibited
from doing business with Company  lenders,  suppliers or vendors so long as such
business  is not of a  competitive  nature  with the Company and so long as such
business does not involve or relate to or make use of the Company's  proprietary
and confidential information described above.

3. No  Disparagement.  The parties  agree they will not make any oral or written
statement or take any other  action which  disparages  or  criticizes  the other
party.  Specifically,  Employee  agrees that  Employee will not make any oral or
written  statement or take any other action which  disparages or criticizes  the
products,   operations,   administration,   employees,   management,   officers,
shareholders  or directors of the Companies.  The parties agree that in response
to any third party  inquiries that the parties may state such  separation was on
friendly  terms.  Any action by either party which  disparages or criticizes the
other  party at any time in the future  will  entitle the other party to seek an
injunction  for any further breach of this  provision,  in addition to all other
legal and equitable remedies available to the other party.

4.  Return  of  Records.  Employee  agrees  that all  correspondence,  drawings,
reports,  ideas, manuals,  letters,  data, notes,  analyses,  sales information,
personnel information,  notebooks,  reports, charts, programs,  proposals, legal
agreements,  files, memoranda,  records, computer generated information,  disks,
software  and any other  documents  whether  originals  or copies,  or  property
concerning the Company's customers, business, finances or products or processes,
whether  or not  prepared  by  and in the  course  of  employment,  alone  or in
conjunction  with others,  together with any credit cards,  cell phones,  laptop
computers and other physical and personal  property which Employee received from
the Company or which Employee generated in connection with his employment by the
Company,  which are in Employee's  possession,  custody or control, are the sole
property of the Company.  Employee  further  warrants that he has turned over to
the  Company,  any such  documents  or  property in his  possession,  custody or
control or will do so on or before July 20, 2004. Furthermore, on or before July
20,  2004  Employee  will  execute and deliver a  certificate  representing  and
warranting  that all such  Company  property  has been  returned to the Company.
Employee  understands  that no amounts due Employee under  paragraph 10 shall be
payable to Employee  until such  certificate  is executed  and  delivered to the
Company.

5.  Release.  As a  material  inducement  to the  Company  to  enter  into  this
Agreement, Employee hereby irrevocably and unconditionally releases, acquits and
forever  discharges the Company and each of the Company's owners,  predecessors,
successors,  assigns, agents, directors,  officers, employees,  representatives,
attorneys,  divisions,  parents,  subsidiaries,   affiliates  (and  the  agents,
directors,   officers,  employees,   representatives,   and  attorneys  of  such

                                     Page 2
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companies,  divisions,  subsidiaries,  and  affiliates),  and all persons acting
through,  under, or in concert with any of them  ("Releasees"),  or any of them,
from  any  and  all  charges,  complaints,  claims,  liabilities,   obligations,
promises, agreements,  controversies, damages, actions, causes of action, suits,
rights,  demands,  costs, losses, debts, and expenses (including attorneys' fees
and  costs  actually  incurred)  of any  nature  whatsoever,  known or  unknown,
suspected or unsuspected, including, but not limited to the following:

         i.       rights  arising out of alleged  violations  of any  contracts,
                  expressed  or  implied,  any  covenant  of good faith and fair
                  dealing, expressed or implied;

         ii.      any tort;

         iii.     any legal  restrictions  on the  Company's  right to terminate
                  employees; or

         iv.      any federal, state, or other governmental statute, regulation,
                  or ordinance,  including, without limitation, Title VII of the
                  Civil  Rights  Act  of  1964,  as  amended;  the  Federal  Age
                  Discrimination  in  Employment  Act; the Federal Older Workers
                  Benefit   Protection   Act;   the   Federal   Americans   with
                  Disabilities Act; the Family Medical Leave Act; the Fair Labor
                  Standards  Act;  the  Federal  Equal Pay Act;  the Fair Credit
                  Reporting  Act, The Employee  Retirement  and Income  Security
                  Act,  Chapter 760,  Florida  Statutes;  Chapter  448,  Florida
                  Statutes;  and any other federal,  state or local law, statute
                  or ordinance applicable to the employment relationship between
                  the parties

(all of the foregoing collectively "Claim" or "Claims"), which Employee now has,
or has ever had, or ever will have,  against  each or any of the  Releasees,  by
reason of any and all acts, omissions, events, circumstances,  or facts existing
or  occurring  up to the date hereof.  Employee  further  agrees to never file a
lawsuit asserting any Claims that are released in this Agreement.

         As a material inducement to Employee to enter into this Agreement,  the
Company hereby  irrevocably and  unconditionally  releases,  acquits and forever
discharges Employee from any and all charges,  complaints,  claims, liabilities,
obligations,  promises, agreements,  controversies,  damages, actions, causes of
action,  suits, rights,  demands,  costs, losses, debts, and expenses (including
attorneys' fees and costs actually  incurred) of any kind or nature  whatsoever,
whether known or unknown,  suspected or unsuspected,  which any of the Companies
(i) now has, owns or holds,  (ii) has at any time  heretofore  owned or held, or
(iii) may hereafter hold in the future  against the Employee or his  affiliates,
by reason of, arising from, in connection  with, or in any way pertaining to all
acts, omissions, events, circumstances, or facts existing or occurring up to the
date hereof  except for any  criminal or willful  misconduct  by  Employee.  The
Companies  and their  respective  successors  or assigns shall hold harmless and
indemnify  the  Employee  against  any  and  all  charges,  complaints,  claims,
liabilities, obligations, promises, agreements, controversies, damages, actions,
causes of action,  suits, rights,  demands,  costs, losses,  debts, and expenses
(including   attorneys'  fees  and  costs  actually   incurred)  of  any  nature
whatsoever,  known or unknown, suspected or unsuspected,  in each case by reason
of, in connection  with, or relating to the fact that Employee was an officer or
director of one or more of the Companies for matters arising during such service
by  Employee to the  fullest  extent  required  or  permitted  by the  Company's
Certificate  of  Incorporation,  Bylaws or the Company's  Officers and Directors
Liability  Insurance.  Nothing herein shall be deemed to expand the liability or
obligations of the Company to Employee beyond those set forth in the Certificate
of Incorporation, Bylaws or the Officers and Directors Liability Insurance.

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<PAGE>

         Notwithstanding  the  foregoing,   this  Agreement  does  not  preclude
Employee or the Company from asserting  claims against the other party which may
be required in order to enforce any rights under this Agreement.

6. Injunction. In view of the nature of Employee's employments,  Employee agrees
that the Company would be  irreparably  harmed by any  violation,  or threatened
violation of this Agreement and that,  therefore,  the Company shall be entitled
to an injunction prohibiting Employee from any violation or threatened violation
of  this  Agreement.  This  right  shall  be in  addition  to and  not by way of
limitation of any other legal or equitable  remedies to which the Company may be
entitled,  including,  but not  limited  to,  the right of the  Company  to seek
recovery or set off of any and all  consideration  paid to  Employee  under this
Agreement in the event  Employee  breaches this  Agreement or this  Agreement is
held invalid.

7. Employee Understanding. Employee represents and agrees as follows:

         i.       Employee  is  advised to consult  with an  attorney.  Employee
                  fully  understands  Employee's right to discuss and review all
                  aspects of this  Agreement  with  Employee's  attorney  or any
                  other advisor and has had adequate time and  opportunity to do
                  so;

         ii.      To  the  extent,  if  any,  that  Employee  desired  to do so,
                  Employee has availed himself of this right;

         iii.     Employee has carefully read and fully  understands  all of the
                  provisions of this Agreement;

         iv.      Employee is voluntarily entering into this Agreement; and

         v.       Employee is not relying on any  representations  or statements
                  by the Company or its representatives  which are not contained
                  in this Agreement.

8. Lack of Wrongful Actions. This Agreement shall not in any way be construed as
an  admission  by the  Company  that it has acted  wrongfully  with  respect  to
Employee or any person, or that Employee has any rights  whatsoever  against the
Company,  and the Company  specifically  disclaims  any liability to or wrongful
acts against Employee or any other person, on the part of itself, its employees,
or its or their agents.

9.  Cooperation.  Employee  agrees at no expense to Employee to  reasonably  and
fully  cooperate  with  the  Company  in  connection  with and as  necessary  to
effectuate  the orderly  transition  of  Employee's  duties,  to provide  advice
regarding  matters  related  to  Employee's  duties,  to  aid  in  defending  or
prosecuting  any  claims or  litigation  by or  against  Company  or  related to
Employee's  duties for the Company for the 9 months  following  the date of this
Agreement. Company shall advance Employee his out of pocket reasonable necessary
and ordinary expenses, if any, in complying with this paragraph.

10. Payment to Employee.

         A. The Company  shall pay Employee the full amount of his severance pay
which shall be two years of his base salary in the total  amount of Four Hundred
Twenty  Thousand  Dollars  ($420,000),   subject  to  customary  withholding  or
deductions  by the  Company  as wages in lieu of notice  which  amount  shall be

                                     Page 4
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payable over a two year period on the Company's regular payroll dates commencing
on July 21, 2004.

         B. In addition,  the Company agrees (1) to pay Employee $1,000,  (2) to
either  cover  Employee  and his family  under the  Company  health care plan or
reimburse  Employee his premium  payments for COBRA  coverage for the six months
commencing  July, 2004 and ending  December,  2004 and (3)  notwithstanding  any
provision  to the  contrary,  to  continue in full force and effect as if he was
employed by the Company, Employee's stock option rights in the manner and to the
extent  provided in that  certain  Non-Qualified  Stock Option  Agreement  dated
December 5, 2002 and that certain  Non-Qualified  Stock Option  Agreement  dated
July 16,  2001.  This  sum and  these  rights  and  concessions  are in full and
complete settlement of all claims by Employee against the Company and constitute
consideration  for  Employee's  release  and  other  agreements  herein  and are
payments and rights to which Employee would not otherwise be entitled.

         All amounts due Employee under  paragraph A and paragraph B (1) and (2)
above  shall be  immediately  due and  payable to Employee in the event (1) of a
sale, lease or other  disposition of all or  substantially  all of the assets of
the Company or (2) the Company files a petition in bankruptcy or otherwise seeks
liquidation or dissolution.

11.  Invalid  Provision.  The  invalidity  or  unenforceability  of a particular
provision  or  portion  thereof  in this  Agreement  shall not  effect the other
provisions  or  portion  hereof,  and  if  any  one  of  them  is  found  to  be
unenforceable,  the other provisions shall remain fully valid and enforceable as
if such invalid or unenforceable provisions were omitted.

12. Waiver or Modification and  Construction.  No waiver or modification of this
Agreement or of any covenant, condition, or limitation herein contained shall be
valid unless in writing and duly executed by the party charged therewith.

13.  Complete  Agreement.  This written  Agreement  contains the sole and entire
agreement  between  the parties as to the matters  contained  herein,  and fully
supersedes any and all prior  agreements or  understandings  between the parties
hereto pertaining to the subject matter hereof.

14. Binding Effect of Agreement.  This Agreement shall be binding upon and inure
to the benefit of the parties  hereto and their  respective  heirs,  successors,
assigns and legal representatives.

15.  Waiver.  No failure  of any party to  exercise  any power  given such party
hereunder or to insist upon strict  compliance by any party with its obligations
hereunder,  and no custom or practice of the parties in variance  with the terms
hereof  shall  constitute  a  waiver  of the  parties'  right  to  demand  exact
compliance with the terms hereof.

16.  Governing Law. This Agreement and the  performance  hereunder and all suits
and  special  proceedings  hereunder  shall be  governed  by, and  construed  in
accordance  with,  the laws of the State of  Florida.  All  actions  under  this
Agreement shall be taken in a court of competent  jurisdiction within the county
in the State of Florida in which the  Company's  principal  place of business is
located and Employee hereby waives and agrees that he shall not assert that such
forum is inconvenient.

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17.  Attorneys'  Fees.  In the event that any party is  required  to commence or
defend  any  action or  proceeding  against  the other in order to  enforce  the
provisions hereof or to challenge the provision hereof,  the prevailing party in
such action  shall be entitled to recover,  in addition to any amounts or relief
otherwise  awarded,  all  reasonable  costs  incurred in  connection  therewith,
including  attorneys' fees,  costs, and expenses for any action or proceeding or
appeal thereof.

18.  Counterparts  and Facsimile  Signatures.  This Agreement may be executed in
counterparts  which together shall constitute a single document.  This Agreement
may be executed and  delivered  with  facsimile  signatures  which shall for all
purposes be deemed originals.

         IN WITNESS  WHEREOF,  the  parties  have  executed  this  Agreement  in
counterparts effective on the 8th day of July, 2004.

                                           "Company"

                                           GALAXY NUTRITIONAL FOODS, INC.

Witness:
         -----------------------------     By: /s/ David H. Lipka
Print Name:                                    --------------------------------
            --------------------------     Print Name: David H. Lipka
                                                       ------------------------
Witness:                                   As its:     Chairman of the Board
         -----------------------------                 ------------------------
Print Name:                                Date:       July 8, 2004
            --------------------------                 ------------------------

                                           "Employee"

                                           CHRISTOPHER J. NEW

Witness:
         -----------------------------     By: /s/ Christopher J. New
Print Name:                                    --------------------------------
            --------------------------     Date:       July 8, 2004
                                                       ------------------------
Witness:
         -----------------------------
Print Name:
            --------------------------Exhibit 10.15

                              EMPLOYMENT AGREEMENT

         THIS AGREEMENT  made this 8th day of July,  2004, by and between Galaxy
Nutritional Foods, Inc., a Florida corporation (the "Corporation"),  and Michael
E. Broll (the "Employee"),

                              W I T N E S S E T H :
                              - - - - - - - - - - -

         WHEREAS,  the  Corporation  desires  to  hire  Employee  as  its  Chief
Executive Officer; and,

         WHEREAS, Employee is willing to be employed by the Corporation.

         NOW,  THEREFORE,  in consideration of the mutual covenants and promises
contained herein, the parties agree as follows:

         1.  Employment.  The Corporation  hereby employs  Employee as its Chief
Executive  Officer whose primary  duties shall  include,  but not be limited to,
oversight and  management of the operations of the Company and  preparation  and
coordination  of Company  budgets.  Employee  hereby accepts such employment and
agrees to  perform  the  foregoing  and such  other  duties  as are  customarily
performed by one holding such position in other,  same or similar  businesses as
that  engaged in by the  Corporation  and to render any such other  services and
duties as may be assigned from time to time by the Corporation.

         2. Performance of Employee's  Duties. The Employee agrees to devote his
full time to the faithful  performance of his duties for the  Corporation and to
render  service to the  Corporation  to the best of his ability,  experience and
talent to the satisfaction of the Corporation.  Such duties shall be rendered at
such place or places in Central  Florida,  as the  Corporation  shall require in
accordance with the best interests,  needs,  business and  opportunities  of the
Corporation.

         3. Term of Employment.  The term of employment shall be for a period of
one year,  commencing  on July 8, 2004,  and  expiring on the first  anniversary
thereof.  The Term shall  automatically  renew for  successive  one year periods
unless either party gives the other written notice at least 90 days prior to the
end of the then Term of this  Agreement that such party does not desire to renew
this Agreement.

         4. Compensation.

            a. The  Corporation  agrees to pay Employee  and Employee  agrees to
accept from the Corporation,  in full payment for Employee's services hereunder,
base  salary at the rate of Two Hundred  Thousand  DOLLARS  ($200,000)  per year
payable  in  equal   semi-monthly   installments   or  in  accordance  with  the

<PAGE>

Corporation's  normal  pay  practices  as may be  altered  from  time to time by
Corporation subject to customary payroll deductions.

            b. The Corporation  shall reimburse  Employee for approved  business
travel expenses in accordance with Company policy.

            c. Employee shall be eligible to  participate  in the  Corporation's
performance  based  compensation   program  offered  to  other  executive  level
employees effective as of the Corporation's fiscal year beginning April 1, 2005.
The Board in its sole  discretion may grant a performance  bonus to Employee for
the period of Employee's service prior to April 1, 2005.

         5. Other Benefits.

            a. The  Corporation  shall  provide  Employee with such benefits and
business  expenses as are  provided to other  executive  level  employees of the
Corporation,  including, but not limited to insurance for health, disability and
dental insurance.

            b. The Corporation  shall reimburse  Employee's  reasonable costs of
lodging  in  Orlando,  Florida  for  one  year  commencing  on the  date of this
Agreement  as agreed to between  the parties  and for  expenses  related to such
lodging, but such related expenses shall not exceed $500 per week.

            c. Corporation  shall provide Employee with an automobile  allowance
of $1500 per month which shall be for the purpose of covering all of  Employee's
automobile expenses.

         6. Death, Incapacity or Illness of Employee.

            a.  If  Employee  dies  during  the  term  of  this  Agreement,  the
Corporation  shall pay to the estate of the Employee  only the base salary which
would otherwise be payable to the employee through the date of death.  Except as
herein  provided,  the death of Employee  shall  terminate  this  Agreement  and
discharge the Corporation from any further  liability for the payments  provided
herein.

            b. In the event Employee becomes disabled,  ill or unable to perform
the essential  functions of his job under this  Agreement,  this Agreement shall
terminate as of the date Employee ceases to perform services hereunder.

         7. A.  Termination  for  Cause.  The  Corporation  may  terminate  this
Agreement  immediately  without liability or further  obligation  hereunder upon
written  notice  to  Employee  if the  Employee  commits  any one or more of the
following acts:

                  i.  Willful  and  substantial  damaging  of the  Corporation's
property, business, reputation or goodwill;

                  ii. Commission of a felony;

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                  iii. Theft, dishonesty, fraud or embezzlement;

                  iv.  The  use  of  alcohol,   narcotics  or  other  controlled
substances  to the  extent  that  it  prevents  the  Employee  from  efficiently
performing services for the Corporation;

                  v. Willfully injuring another employee of the Corporation;

                  vi. Willfully injuring any person in the course of performance
of services for the Corporation;

                  vii. Disclosing to a competitor or other unauthorized  persons
confidential or proprietary information or secrets of the Corporation;

                  viii.  Solicitation of business on behalf of a competitor or a
potential competitor;

                  ix. Sexual harassment of any other employee of the Corporation
or the  commission  of  any  act  which  otherwise  creates  an  offensive  work
environment for other employees of the Corporation;

                  x.  Failure  of  Employee  for any reason  other  than  death,
disability  or  illness  within ten days after  receipt by  Employee  of written
notice thereof from the  Corporation,  to correct,  cease or otherwise alter any
insubordination, failure to comply with instructions or other act or omission to
act that in the  opinion of the  Corporation  does or may  adversely  affect its
business or operations; or

                  xi.  Failure of  Employee  to  substantially  comply  with any
provision of the Corporation's policy manual as it applies to Employee;

            Corporation  shall not be limited to termination as a remedy for any
improper or illegal act of Employee,  but may also seek  damages,  injunction or
such other remedy as it may deem appropriate under the circumstances.

            B. Termination  Without Cause. In the event  Corporation  terminates
Employee's  service  hereunder  without  cause,  Employee  shall be  entitled to
receive one year of Employee's base salary as wages in lieu of notice payable at
the  option  of  Corporation  in a lump  sum or  over a  period  of one  year on
Corporation's  normal payroll dates and subject to typical  payroll  deductions.
Notice of  nonrenewal  pursuant  to  paragraph  3 above,  shall  not  constitute
termination without cause for purposes of this provision.

         8. Merger or Sale of Corporation.  In the event of the sale,  merger or
consolidation  of the  Corporation,  Employee agrees that Corporation may assign
its rights and obligations hereunder to its successor or purchaser.

         9. Limitations on Other  Employment.  During the term hereof,  Employee
shall not enter into the  services of or be employed in any  capacity or for any
purposes  whatsoever,  whether  directly or  indirectly,  by any  person,  firm,
corporation or entity other than  Corporation,  and will not, during said period

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of time,  be engaged  in any  business,  enterprise  or  undertaking  other than
employment by the Corporation.  However, nothing contained herein shall prohibit
Employee  from  investing  or trading in stocks,  bonds,  commodities,  or other
securities or forms of  investments  including  real estate for his own personal
account.

         10. Reimbursement of Disallowed Compensation and Expenses. In the event
any  compensation or  reimbursement of expenses paid to Employee or expenses for
Employee shall upon audit or other  examination of the income tax returns of the
Corporation be determined  not to be an allowed  deduction from the gross income
of the Corporation,  and such determination shall be accepted by the Corporation
or shall be rendered final by the appropriate  state or federal taxing authority
or by a judgment of a court of  competent  jurisdiction  and no appeal  shall be
taken therefrom or the applicable  period for filing notice of appeal shall have
expired,  then, in such event, Employee will repay to the Corporation the amount
of disallowed  compensation  or expenses or both from  Employee's  future salary
payments.  This duty of repayment may not be waived by the Corporation,  but any
repayment by Employee to the  Corporation  pursuant to this provision is limited
to the  remaining  future  salary  payments  due to  Employee  pursuant  to this
Agreement  at that  time,  from  which the  Corporation  shall have the right to
withhold  such  remaining   unpaid  future  salary   payments  in  one  or  more
installments,  until the amount allowed to the Corporation has been recovered in
full or the remaining  future salary  payments due to Employee  pursuant to this
Agreement is exhausted.

         11. Assignment of Proprietary Information. Except as may be required in
the course of employment by the  Corporation,  Employee  agrees that any and all
proprietary  information,  as  hereinafter  defined,  which  Employee  has made,
conceived of, developed or originated,  either  individually or jointly with any
other  person or persons at any time  during  the  period of  employment  by the
Corporation,  or during a period of one year after  termination or expiration of
said employment, whether during working hours or any other time, which relate in
any way to the business or the type of business  now or hereafter  engaged in or
contemplated  by the Corporation  during the period of Employee's  employment or
which  result  from  or may be  suggested  by any  work  Employee  does  for the
Corporation  or at the  Corporation's  request,  shall  be the  property  of the
Corporation.  As used herein,  "Proprietary  Information" shall mean any and all
proprietary  property  including but not limited to all  techniques,  processes,
devices,  charts,  manuals,  payroll, and improvements thereto together with the
names and  identities  of all  clients and  prospective  clients,  price  lists,
suppliers and all other  information or materials which the Corporation may from
time to time designate and treat as  confidential  and proprietary or as a trade
secret.

         Employee shall promptly disclose and assign and does hereby assign such
Proprietary  Information to the  Corporation's  representatives  and do all such
acts, and execute and deliver all such documents, as may be necessary to vest in
the  Corporation  the title to all such  Proprietary  Information and enable the
Corporation  to properly  prepare and  prosecute  any and all  applications  for
patents,  trademarks or copyrights thereon as well as all reissues, renewals and
extensions thereof, so that the Corporation shall be the sole and absolute owner
of all right, title and interest in said proprietary  property. It is understood
and agreed that the words  "which  relate in any way to the business or the type
of business  now or hereafter  carried on or  contemplated  by the  Corporation"
shall   properly   cover  any   reasonable   development  or  extension  of  the
Corporation's  field of operation.  These  obligations shall continue beyond the
termination or expiration of Employee's  employment  with respect to inventions,

                                                                          Page 4
<PAGE>

discoveries and developments  conceived or made by Employee during the period of
employment  and  shall be  binding  on  Employee's  assigns,  executors,  heirs,
administrators  and  other  legal  representatives.  Employee  agrees  that  all
correspondence,  drawings, reports, ideas, blueprints,  manuals, letters, notes,
analyses, notebooks, reports, charts, programs, proposals or any other documents
concerning the Corporation's customers or products or processes,  whether or not
prepared  by and in the  course  of  employment,  alone or in  conjunction  with
others, is the property of the Corporation and upon termination or expiration of
employment for any reason, Employee shall promptly return to the Corporation any
such documents in his possession, custody or control.

         12.  Information  and  Testimony.  Employee  will,  without  expense to
himself,  give such true  information and testimony under oath if requested,  as
may  be  requested  of  him  by the  Corporation  relative  to  any  Proprietary
Information  that is subject to  disclosure to the  Corporation  under the terms
hereof.

         13.  Proprietary  Information.  Employee agrees that he will not at any
time during or after the termination or expiration of his employment,  except as
authorized or directed in writing by the  Corporation,  use for  Employee's  own
benefit,  copy, reveal, sell, divulge or make known in any manner to any person,
firm or  corporation  the  contents  of any  unique  and  confidential  methods,
inventions,  systems,  processes,  formula,  design, concepts,  techniques,  and
devices of the Corporation, whether or not owned by the Corporation, whether the
same  shall or may have been  originated,  discovered  or  otherwise  created by
Employee  or the  methods,  processes  or  manner  of the  creation  and sale of
products  or  services  provided  by,  sold or  leased by the  Corporation,  all
sometimes referred to as "trade secrets".

         Employee  further  agrees not to  reveal,  divulge or make known to any
person, firm or corporation the name of any of the Corporation's  clients, price
lists,  financial  information,  suppliers or any secret,  trade secret or other
Proprietary  Information  whatsoever in  connection  with the  Corporation,  its
business or its  clients or anything  pertaining  thereto  except as  reasonably
necessary to the performance of Employee's duties.

         Employee  understands that if, either during  employment or thereafter,
he  discloses  to others,  uses for his own  benefit  or for the  benefit of any
person or entity other than the  Corporation,  copies or makes notes of any such
trade secrets,  information or facilities, such conduct will constitute a breach
of the confidence and trust bestowed upon Employee by the  Corporation  and will
be a breach of this Agreement.

         Employee  further  agrees that he is under no  obligation to any former
employer which is in any way  inconsistent  with this Agreement or which imposes
any  restriction on behalf of the  Corporation.  The Employee also  acknowledges
that  he  has  been  instructed  that  during  the  term  of  employment  by the
Corporation,  he is not to  divulge to the  Corporation,  its  employees  or its
consultants any confidential information obtained from any previous employers or
any other person.

         14. Return of Records and  Property.  On  termination  or expiration of
employment,  Employee shall deliver all records,  files, notes, data, memoranda,
models,  and equipment of any nature that are in Employee's  possession or under

                                                                          Page 5
<PAGE>

his  control  and that are the  property  of the  Corporation  or  relate to his
employment or to the business of the Corporation.

         15. Defense and  Indemnification.  The Corporation  agrees that it will
defend,  indemnify,  and hold  Employee  harmless  from and  against all claims,
damages,  causes of  action,  costs,  or  expenses,  including  court  costs and
reasonable attorney's fees, that may arise and/or be incurred in connection with
any actual or alleged action or inaction  resulting from any  responsibility  or
duty deemed,  alleged,  or assumed to result from this Agreement,  including but
not limited to  Performance of Employee's  Duties to the extent  provided in the
Corporations  Articles of Incorporation  and Bylaws and to the extent covered by
the Company Directors and Officers Liability Insurance.

         16. Waiver or Modification. No waiver or modification of this Agreement
or of any covenant,  condition,  or limitation  herein  contained shall be valid
unless  in  writing  and duly  executed  by the party to be  charged  therewith.
Furthermore,  no  evidence  of any  modification  or waiver  shall be offered or
received as evidence in any  proceeding,  arbitration or litigation  between the
parties  arising out of or affecting this Agreement or the rights or obligations
of any party hereunder,  unless such waiver or modification is in writing,  duly
executed as aforesaid. The provisions of this paragraph may not be waived except
as herein set forth.

         17. Complete  Agreement.  This written Agreement  contains the sole and
entire agreement  between the parties as to the matters  contained  herein,  and
supersedes any and all other  agreements  between them. The parties  acknowledge
and agree that neither of them has made any representation  with respect to such
matters of this Agreement or any representations  except as are specifically set
forth herein, and each party acknowledges that he or it has relied on his or its
own judgment in entering into this Agreement.  The parties  further  acknowledge
that statements or representations  that may have been heretofore made by either
of them to the  other  are void and of no effect  and that  neither  of them has
relied thereon in connection with his or its dealing with the other.

         18. Choice of Law. This Agreement and the performance hereunder and all
suits and special  proceedings  hereunder  shall be construed in accordance with
the laws of the State of Florida.  In any action,  special  proceeding  or other
proceeding that may be brought arising out of, in connection  with, or by reason
of this  Agreement,  the laws of the State of Florida  shall be  applicable  and
shall govern to the exclusion of the law of any other forum,  without  regard to
the  jurisdiction  in which the action or special  proceeding may be instituted.
All  actions  under  this  Agreement  shall be  taken  in a court  of  competent
jurisdiction   within   the  county  in  the  State  of  Florida  in  which  the
Corporation's  principal place of business is located and Employee hereby waives
and agrees that he shall not assert that such forum is inconvenient.

         19. Binding Effect of Agreement.  This Agreement  shall be binding upon
and inure to the  benefit  of the  parties  hereto and their  respective  heirs,
successors, assigns and legal representatives.

         20. Life Insurance.  Inasmuch as the services of Employee are important
to the success or failure of the  Corporation,  the Corporation may, by its sole
discretion,  purchase  disability  insurance  or  insurance  on the  life of the

                                                                          Page 6
<PAGE>

Employee  during the term hereof in such amounts as Corporation  shall determine
appropriate.  Such insurance shall be owned by the Corporation,  the Corporation
shall be the sole  beneficiary,  and all premiums  therefor shall be paid by the
Corporation.  The Employee agrees to cooperate with the reasonable  requirements
of the  Corporation  and/or its  insurance  carriers as necessary to obtain such
insurance, including submitting to any and all necessary medical examinations.

         21.  Invalid  Provision.   The  invalidity  or  unenforceability  of  a
particular  provision of this  Agreement  shall not effect the other  provisions
hereto, and this Agreement shall be construed in all respects as if such invalid
or unenforceable provisions were omitted.

         22. Costs of Enforcement. In the event either party initiates action to
enforce his, her or its rights  hereunder,  the  substantially  prevailing party
shall  recover  from  the  substantially  non-prevailing  party  its  reasonable
expenses,  court  costs,  including  taxed and  untaxed  costs,  and  reasonable
attorneys'  fees,  whether  suit  be  brought  or not  (jointly  referred  as to
"Expenses"). As used herein, Expenses include expenses incurred in any appellate
or bankruptcy  proceeding.  All such Expenses shall bear interest at the highest
rate  allowable  under  the  laws of the  State  of  Florida  from  the date the
substantially   prevailing   party  pays  such  Expenses   until  the  date  the
substantially  non-prevailing  party repays such Expenses.  Expenses incurred in
enforcing this paragraph shall be covered by this paragraph.

         23.  Assignment.  This  Agreement  shall be construed as a contract for
personal  services by Employee to the Corporation and shall not be assignable by
Employee.

         24.  Strict  Construction.  This  Agreement  was the joint,  negotiated
product of the parties.  Therefore,  neither party shall advance a position that
any provision hereof should be more strictly  construed  against the other party
on the basis that such other party prepared such provision.

         25. Cumulative  Rights.  Unless otherwise  provided herein, all rights,
powers and  privileges  conferred  upon the parties by law,  this  Agreement  or
otherwise shall be cumulative.

         26.  Waiver.  No failure of any party to exercise  any power given such
party  hereunder  or to insist  upon  strict  compliance  by any party  with its
obligations hereunder, and no custom or practice of the parties in variance with
the terms hereof shall constitute a waiver of the parties' right to demand exact
compliance with the terms hereof.

         27.  Survival.  The  provisions of this  Agreement  shall  continue and
survive the closing hereof unless or until there is a completion and fulfillment
of all the conditions, covenants and warranties herein.

         28. Time. Time is of the essence of this Agreement.

         29. Notices.  All notices,  requests,  demands and other communications
required or permitted  hereunder shall be in writing and shall be deemed to have
been duly given when  delivered by hand or when mailed by  certified  registered
mail, return receipt requested, with postage prepaid to their current address or
to such other address as they request in writing.

                                                                          Page 7
<PAGE>

         30.  Singular/Plural  Feminine/Masculine,  Successors  or Assigns.  All
references  as used herein shall  include male and female,  singular and plural,
and successors or assigns in the use of a corporation,  partnership,  individual
or entity in any place or places  herein in which the  context  may  require  or
permit such substitution, substitutions or designations.

                           [SIGNATURE PAGE TO FOLLOW]

                                                                          Page 8

<PAGE>

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

                                              "Corporation"

                                              GALAXY NUTRITIONAL FOODS, INC.

                                              By: /s/ David H. Lipka
----------------------------------                ------------------------------
Witness
                                              As its: Chairman of the Board

                                              Date:   July 8, 2004
----------------------------------                    --------------------------
Witness

                                              "Employee"

                                              MIKE BROLL

                                              /s/ Mike Broll
----------------------------------            ----------------------------------
Witness                                       Mike Broll

                                              Date:   July 8, 2004
                                                      --------------------------
----------------------------------
Witness

                                                                          Page 9

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