SEC Contract Filing

Filing Date: 2020-04-15

Document Content:
<DOCUMENT>
<TYPE>EX-10.38
<SEQUENCE>4
<FILENAME>pfti_ex10z38.htm
<DESCRIPTION>PROMISSORY NOTE
<TEXT>
<!doctype html public "-//IETF//DTD HTML//EN">
<HTML>
<HEAD>
<TITLE>PROMISSORY NOTE</TITLE>
<META NAME="author" CONTENT="Windows">
<META NAME="date" CONTENT="04/15/2020">
</HEAD>
<BODY style="margin-top:0;font-family:Times New Roman; font-size:10pt; color:#000000">
<P style="margin:0px; font-size:12pt">&nbsp;</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; font-size:11pt" align=right><B>EXHIBIT 10.38</B></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; font-size:11pt" align=center><B>PROMISSORY NOTE</B></P>
<P style="margin:0px" align=justify><BR></P>
<TABLE style="margin-top:0px; font-size:10pt" cellpadding=0 cellspacing=0 width=100%><TR height=0 style="font-size:0"><TD /><TD width=319.2 /></TR>
<TR><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=top><P style="margin:0px; padding:0px">&nbsp;</P></TD><TD style="margin-top:0px; border-bottom:1px solid #000000" valign=top width=319.2><P style="margin:0px; font-size:11pt" align=justify>&nbsp;</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top><P style="margin:0px; font-size:11pt">November 19, 2019</P>
</TD><TD style="margin-top:0px" valign=top width=319.2><P style="margin:0px; font-size:11pt" align=right>$25,000</P>
</TD></TR>
<TR><TD style="margin-top:0px" valign=top><P style="margin:0px; font-size:11pt" align=justify>Boynton Beach, Florida</P>
</TD><TD style="margin-top:0px" valign=top width=319.2><P style="margin:0px; padding:0px; font-size:11pt">&nbsp;</P></TD></TR>
</TABLE>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:48px; font-size:11pt" align=justify><B>FOR VALUE RECEIVED</B>, the undersigned, <B>PURADYN FILTER TECHNOLOGIES INCORPORATED</B>, a Delaware corporation (the &#147;<B><U>Maker</U></B>&#148;) having a business address at 2017 High Ridge Road, Boynton Beach, FL &nbsp;33426, hereby promises to pay to the order of <B>DOMINICK A. TELESCO</B>, an individual (the &#147;<B><U>Payee</U></B>&#148; or &#147;<B><U>Holder</U></B>&#148;) having a business address at 150 Via Bellaria, Palm Beach, FL &nbsp;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, </P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:48px; width:96px; font-size:11pt; float:left">1.</P>
<P style="margin:0px; text-indent:-2px; font-size:11pt" align=justify><B><U>Payments of Interest and Principal</U>.</B> &nbsp;All principal and accrued interest shall be due and payable on December 31, 2020 the (&quot;<B><U>Maturity Date</U></B>&quot;). &nbsp;Interest may be paid in cash or shares of the Maker's common stock at the option of the Maker. &nbsp;Any such shares shall be valued at the fair market value of the Maker's common stock at the date of issuance. &nbsp;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.</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:48px; width:96px; font-size:11pt; float:left">2.</P>
<P style="margin:0px; text-indent:-2px; font-size:11pt" align=justify><B><U>Prepayment</U>.</B> &nbsp;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. &nbsp;There is no prepayment penalty. &nbsp;</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:48px; width:96px; font-size:11pt; float:left">3.</P>
<P style="margin:0px; text-indent:-2px; font-size:11pt" align=justify><B><U>Default</U>.</B> &nbsp;The occurrence of any of the following shall constitute an event of default (&#147;<B><U>Event of Default</U></B>&#148;):</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:96px; width:144px; font-size:11pt; float:left">a.</P>
<P style="margin:0px; padding-left:144px; text-indent:-2px; font-size:11pt" align=justify><U>Failure to Pay</U>. &nbsp;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;</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:96px; width:144px; font-size:11pt; float:left">b.</P>
<P style="margin:0px; padding-left:144px; text-indent:-2px; font-size:11pt" align=justify><U>Failure to Perform</U>. &nbsp;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;</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:96px; width:144px; font-size:11pt; float:left">c.</P>
<P style="margin:0px; padding-left:144px; text-indent:-2px; font-size:11pt" align=justify><U>Petition By or Against Maker</U>. &nbsp;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</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:96px; width:144px; font-size:11pt; float:left">d.</P>
<P style="