Document:

Exhibit 10.2

SENIOR PROMISSORY NOTE

 

IT IS THE MAKER’S EXPRESS INTENTION THAT THIS SENIOR PROMISSORY NOTE BE, AS OF THE DATE OF THIS SENIOR PROMISSORY NOTE, SENIOR TO ALL OTHER MAKER DEBT EXCEPT THE BANK OF INDIA WHO IS AS OF THE DATE OF THIS SENIOR PROMISSORY NOTE THE MAKER’S SENIOR SECURRED CREDITOR.

 

	
            $550,000.00
 	
            July 20, 2009
 

 

FOR VALUE RECEIVED, Synovics Pharmaceuticals, Inc., with its principal office located at 5360 NW 35th Ave., Fort Lauderdale, Fl. 33309 (hereinafter referred to as the "Maker"), hereby promises to pay to the order of Maneesh Pharmaceuticals Ltd (“Company”) or its assigns (Company and its assigns are each hereinafter referred to as the "Holder") in accordance with the terms and conditions of this Senior Promissory Note (this “Note”), as amended, modified or supplemented from time to time, each of the payments as set forth on Exhibit A (the “Payments”), attached hereto and made a part hereof.

 

Any failure of the Maker to make any of the Payments within five (5) calendar days of receipt of written notice from the Holder shall constitute an event of default (an “Event of Default”) under this Note. Upon the occurrence of any Event of Default, this Note, at the option of the Holder, shall become immediately due and payable without presentment, demand, protest or notice of any kind, all of which are hereby expressly waived by Maker. The Holder's failure to exercise such option shall not constitute a waiver of the right to exercise it at any subsequent date.

 

Upon the occurrence of any event of default, the Maker shall also pay to the Holder interest on the then-current unpaid balance of the Amount due from the date of default until payment of the full amount due at the rate of 18% per annum. All interest payable hereunder shall be computed on the basis of the actual number of days elapsed using a three hundred sixty-five (365) day year.  

 

All sums payable hereunder are payable in lawful money of the United States of America and in immediately available funds at such place or places as the Holder may designate in writing.  This Note may be prepaid at any time, in whole or in part, without penalty. All sums paid under this Note shall be applied first to any interest, fees, expenses and other charges then due and unpaid, in such order as the Holder shall determine, with the remaining principal amount, if any, to be applied to unpaid principal.  

 

The Maker may not assign, transfer or negotiate this Note and any security for the performance of Maker's obligations hereunder without the written consent of the Holder. 

 

Maker further acknowledges and agrees that in the event of the filing of a voluntary or involuntary bankruptcy, whether under Chapter 7, Chapter 11, or otherwise, under the Federal Bankruptcy Code (11 U.S.C. § 101 et seq.), involving Maker, prior to the date on which Maker has fully satisfied its payment obligations, pursuant to this Note, it shall 

 

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specifically request of the bankruptcy court, that its debt to Holder, in the amount of the remaining monies due and owing by it, pursuant to this Note, not be discharged in bankruptcy and that such debt to  Holder shall survive such bankruptcy filing, together with the discharge of same.

 

Maker will pay all of the legal and other fees and expenses of the Holder reasonably incurred in connection with the enforcement of any of the obligations of Maker or rights of the Holder under this Note.

 

In the event any provision of this Note is held to be unenforceable, void, or invalid for any reason, the unenforceability or invalidity thereof shall not affect the remainder of this Note, which shall remain in full force and effect and enforceable in accordance with its terms.

 

This Note may not be modified or terminated orally.  This Note for all purposes shall be enforced and construed in accordance with the substantive law of the State of Florida, without application of its conflict of laws provisions.  The Maker hereby consents to the exclusive jurisdiction and venue of the state and federal courts located in Florida with respect to any matters arising from enforcement of this Note.

 

IN WITNESS WHEREOF, the undersigned has executed this Note under seal as of the date first above written.

 

SYNOVICS PHARMACEUTICALS, INC.

 

 

By: \s\Ron Lane                                          
      

	
            Title:  Ron Lane, Director  
 

 

 

By: \s\Harcharan Sing                                      

	
            Title:  Harcharan Singh, Director  
 

 

 

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EXHIBIT A

Senior Promissory Note Payment Schedule

 

In exchange for Company’s direct payment to Bank of India, in accordance with the Bank of India letter dated July 3, 2009, of $550,000.00 on Maker’s behalf, Maker hereby agrees to pay Company, in one lump sum, $550,000.00 plus interest at the rate of 15% per annum upon the earlier to occur of: (a) December 31, 2009; or (b) the Maker’s receipt of an investment of at least $1,000,000.00 (on terms acceptable to the Maker). All interest payable hereunder shall be computed on the basis of the actual number of days elapsed using a three hundred sixty-five (365) day year.

 

 

3Exhibit
  10.3

CONTRACT MANUFACTURING AGREEMENT

 

THIS CONTRACT MANUFACTURING AGREEMENT (the “Agreement”) is made and entered into this 1st day of July, 2009 (the “Effective Date”) by and among Kirk Pharmaceuticals, LLC (“Kirk”), a Florida limited liability company, with offices at 5360 NW 35th Avenue, Fort Lauderdale, FL 33309, AndaPharm, LLC (“AndaPharm”), a Florida limited liability company, with offices at 5360 NW 35th Avenue, Fort Lauderdale, FL 33309 (“Kirk” and “AndaPharm” are hereinafter referred to collectively as “Kirk”) and Svizera USA LLC (“Svizera”), a Delaware limited liability company, with offices at 505 Thornall Street, Suite 304, Edison, New Jersey 08837-2260 (each of “Kirk” and “Svizera” are referred to herein as a  “Party” and collectively the “Parties”) for the purpose of memorializing
the Parties desire to formulate a strategic business relationship for the manufacture and supply of certain products.

 

WHEREAS, Kirk manufactures, sells and distributes pharmaceutical products in the United States; and

 

WHEREAS, Svizera has access to customers who may wish to purchase the pharmaceutical products produced by Kirk; and 

 

WHEREAS, Svizera desires to enter into this Agreement with Kirk in order to supply certain customers with the pharmaceutical products produced by Kirk;

 

NOW, THEREFOR, intending to be legally bound hereby, the Parties hereto agree as follows:

 

1.            Contracted Product.        Should
    Svizera wish to have Kirk manufacture, sell and distribute finished dosage
    form of a Product (as defined
    on Exhibit A) to a customer,
    Svizera will deliver an executed “Proposed Product Sheet”, in the
    form of Exhibit A attached
    hereto, to Kirk. If Kirk agrees to the terms and conditions of the Proposed
    Product Sheet, which shall include the product, product specifications, raw
    materials to be provided by Svizera, pricing, payment terms and Kirk’s
    payment, it shall execute and deliver the same to Svizera  within ten (10)
    days of its receipt. Upon execution of this Agreement Svizera shall transfer
    to Kirk the prepayment listed on Exhibit B attached
    hereto.

 

2.            Term.         This Agreement shall commence on the Effective Date, and shall continue for an initial term of one (1) year.  This Agreement shall automatically be renewed for successive one (1) year increments unless either Party requests in writing, at least thirty (30) days prior to the      anniversary date that this Agreement not be so renewed. 

 

3.            Confidential Information.
    The term “Confidential Information” means any data or information,
    of any kind, nature or description, about or concerning the business or operations
    of Kirk or Svizera, including, but not limited to, any information relating
    to past, present, or future sales, financial structure, pricing, marketing
    data, personnel data, the Products and Formulations, software, research,
    development, inventions, computer processes, techniques, designs, programs
    and codes, or other technical information and data; the names, addresses,
    buying habits or practices of any of Kirk or Svizera’s clients or customers;
    Kirk or Svizera’s marketing methods, programs and related data, or other
    written records used in Kirk or Svizera’s business;
but none of the above includes information which is or becomes available to the
    public through no fault of Kirk or Svizera’s or anyone else receiving
    information from Kirk or Svizera.

 

 

 

 

4.            Trade Secrets.
    The term “Trade Secret” means any data or information, including,
    but not limited to, technical or non-technical data, specifications, designs,
    plans, proposals, copyrightable work, financial, business and marketing plans
    or data, formulas, patterns, compilations, programs, devices, methods, techniques,
    drawings, processes, product plans, actual or potential customer or supplier
    lists and information, or other information similar to any of the foregoing,
    which derives economic value, actual or potential, from not being generally
    known to, and not being readily ascertainable by proper means by, other persons
    who can derive economic value from its disclosure or use.

 

5.            Acquired Confidential Information.
    Kirk and Svizera acknowledge that all information regarding each other’s
    business which may be ascertained or compiled or obtained by either Party
    or furnished to either Party in connection with this Agreement, is Confidential
    Information and each Party’s
      exclusive property, except to the extent such information is or becomes
      available to the public through no fault of either Party or anyone receiving
      information from either Party.   

 

6.            Preservation and Protection of Confidential
      Information.  Each Party
      agrees to preserve and protect the confidentiality of the Confidential
      Information and all tangible forms thereof, whether disclosed to either
      Party, its officer, agents, employees, or assigns, before this Agreement
      is signed or afterward. Neither Party shall disclose or disseminate Confidential
      Information to any person, firm, or entity (other than authorized personnel
      of each Party) or use Confidential Information for its own benefit or for
      the benefit of any third party, without prior written approval of the other
      Party. Within three days after receipt of a request from either Party,
      either Party shall return to the other all requested Confidential Information
      in tangible form that is held by that  Party or within its custody or control.

 

7.            Non-Disclosure of Trade Secrets.
    Each Party acknowledges that Trade Secrets of the other Party comprise a
    part of the Confidential Information as to which both party’s have and/or
    will have knowledge and access. Both parties acknowledge the competitive
    value and confidential nature of such Trade Secrets, and recognize and agree
    that the disclosure and/or improper use of such Trade Secrets will cause
    serious and irreparable injury to the other Party.

 

8.            Non-Solicitation.  Each Party agrees that during the term of this Agreement, inclusive of any Renewal Term and for a period of six (6) months from the termination of this Agreement, neither party shall directly or indirectly, either for itself or through any affiliate:

 

(a)           cause or seek to cause any of the other Party’s suppliers, vendors, purchasing agents, or customers to cease transacting business with the other Party; or

 

(b)           cause or seek to cause any Party’s prospective suppliers, vendors, purchasing agents, or customers not to transact business with the other Party; or

 

(c)           solicit on behalf of any other Party any orders for the Products or services pertaining to this Agreement now or hereafter sold by either party from any person or entity whether a customer or potential customer of Kirk or Svizera; or

 

(d)          shall recruit or solicit or attempt to recruit or solicit or induce or attempt to induce, or take any action in order to induce, or attempt to induce, any employee or agents of Svizera or Kirk to terminate an employment or other relationship with the other. 

 

9.            Mutual Acknowledgement.  Each party has carefully considered the nature and extent of the restrictions upon them and the rights and remedies conferred upon each other under this 

 

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Agreement, and each hereby acknowledges and agrees that the same are reasonable in their nature, extent time and territory, are designed to eliminate only competition which otherwise would be unfair to either party, are fully required to protect the legitimate interests of both parties, and do not confer a benefit upon either party disproportionate to the detriment to each other individually.

 

10.          Irreparable Harm.
    Each party acknowledges that if it or any of its affiliates breach any of
    the obligations contained in Sections 3 through 8 of this Agreement, the
    injury that will be suffered by the non-breaching party will be irreparable
    and such non-breaching party will not have an adequate remedy at law. Each
    party agrees, on its behalf and on behalf of its affiliates, officers, agents,
    assigns, and employees that in the event of such a breach, the non-breaching
    party shall be entitled to relief by way of injunction to enforce those obligations
    in this Agreement, in addition to all other rights that said non-breaching
    party may have at law, in equity, under this Agreement or otherwise. The
    exclusive forum for any such proceeding shall be Broward County, Florida.
    In the  event that any such proceeding is instituted, it is agreed that the
    prevailing party shall be reimbursed by the non-prevailing party for all
    costs and expenses, including reasonable attorneys’ fees and expenses,
    incurred by said prevailing party arising from, in connection with, or relating
    to such proceeding.

 

11.          Intellectual Property.  “Intellectual
    Property” is defined as any designs, processes, formulae, technologies
    (developed or used), know-how, systems, trade secrets, inventions, discoveries,
    copyrights, improvements and patent or patent rights conceived or reduced
    to practice.

 

12.          Ownership of Each Party’s Intellectual Property.  It
    is expressly understood and agreed that any and all right, title and interest
      in Intellectual Property employed during the performance of this Agreement
      is the sole and exclusive property of the Party that developed and or disclosed
      the Intellectual Property. Intellectual Property, Confidential Information
      or Trade Secrets shall be delivered promptly to the other Party (together
      with all copies thereof), at the request of the Party entitled to the information.

 

13.        Kirk’s
Warranties:

 

(a)           Manufacturing. At the date of manufacture, the Product will conform to specifications applicable to such Product and listed on Exhibit A and all Products will be constructed of materials meeting the specifications listed on Exhibit A;

 

(b)           No Liens.           All Products will be free and clear of all liens and encumbrances and Kirk will convey good and marketable title to such Product.  

 

(c)           No Conflicts.   Kirk represents and warrants that neither this Agreement, nor the carrying out of the terms and conditions that are contemplated by this Agreement, will violate the rights of any other party or result in the creation of any right or claim that may adversely affect Kirk’s performance of its obligations under this Agreement.  

 

(d)           Authority.   Kirk warrants, represents and covenants that Kirk has the legal right to enter into this Agreement and perform its obligations hereunder. In addition, the undersigned signatory for Kirk represents and warrants that he has been duly authorized to sign this Agreement on behalf of Kirk and he further represents that all requisite corporate action has been taken on the part of Kirk to approve this Agreement. 

 

 

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(e)          Regulatory Compliance.  Kirk will comply with all applicable United States and state laws, statutes, rules, and regulations, including applicable current FDA guidelines.  Without limitation, Kirk shall be responsible for obtaining all necessary permissions and licenses for the manufacture of the Product and sale and Distribution to the customers, in accordance with the applicable United States and state laws, statutes, rules, and regulations.

 

14.          Limitation of Warranties.           Kirk shall have no liability or responsibility under the Warranty set forth in Section 13 above for any losses or damages to the extent that any Warranty claims are the result of:

 

(a)        Modification
or alteration of the Product by a party other than Kirk; or

(b)           Changes in FDA regulations which make the manufacture of the product not viable.  

 

15.          Svizera’s
Warranties.             Svizera
warrants and represents to Kirk, as follows:

 

(a)           No Conflicts.
    Svizera represents and warrants that neither this Agreement, nor the carrying
    out of the terms and conditions that are contemplated by this Agreement,
    will violate the rights of any other party or result in the creation of any
    right or claim that may adversely affect Svizera’s performance of its
    obligations under this Agreement.  

 

(b)           Authority.   Svizera warrants, represents and covenants that Svizera has the legal right to enter into this Agreement and perform its obligations hereunder. In addition, the undersigned signatory for Svizera represents and warrants that he has been duly authorized to sign this Agreement on behalf of Svizera and he further represents that all requisite corporate action has been taken on the part of Svizera to approve this Agreement. 

 

(c)          Regulatory Compliance.  Kirk will comply with all applicable United States and state laws, statutes, rules, and regulations, including applicable current FDA guidelines.  

 

16.          Svizera Indemnity.         Svizera
    shall indemnify, defend and hold Kirk and its affiliates, designees, and
    their respective members, officers, directors, employees and agents (each,
    a “Kirk Indemnified Party”), harmless from and against any and
    all claims, demands, losses, costs, expenses, obligations, liabilities, damages,
    recoveries and deficiencies, including interest, penalties, reasonable attorneys’ fees,
    costs of investigation and any legal or other expenses or costs (“Damages”)
    incurred or suffered by any Kirk Indemnified Party arising out of, in connection
    with or resulting from any claim or allegation as to: (a) any product
    liability or defect (other than  to the extent caused by and attributable
    to the acts or omissions of any Kirk Indemnified Party), or (b) any
    violation or infringement by Svizera of any common law or statutory rights
    of any third party, including without limitation rights relating to copyrights,
    patents, trade marks, contractual rights or trade secret rights, or (c) any
    inaccuracy or breach in or of or any failure to observe or perform any of
    Svizera’s covenants, representations, warranties or obligations under
    this Agreement. It is the intent of the parties that all indemnification
    obligations of Svizera set forth in this Agreement shall be limited and shall
    not apply to the extent caused by and/or attributable to the acts or omissions
    of any Kirk Indemnified Party.

 

17.          Kirk Indemnity.
    Kirk shall indemnify, defend and hold Svizera and its designees and their
    respective members, officers, directors, employees and agents (each an “Svizera
    Indemnified Party”), harmless from and against any and all claims, demands,
    losses, costs, expenses, obligations, liabilities, damages, recoveries and
    deficiencies, including interest, penalties, reasonable attorneys’ fees,
    costs of investigation and any legal or other expenses or 

 

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costs (“Damages”) incurred or suffered by any Svizera Indemnified Party arising out of, in connection with or resulting from any claim or allegation as to (a) any product liability or defect claimed to have arisen from Product formulations developed or created by Kirk and utilized by Svizera; (b) any claim arising out of the manufacture of the Product; and (c) any inaccuracy or breach in or of or any failure to observe or perform any of Kirk’s covenants, representations, warranties or obligations under this Agreement.  It is the intent of the parties that all indemnification obligations of Kirk set forth in this Agreement shall be limited and shall not apply to the extent caused by and/or attributable to the acts or omissions of any Svizera Indemnified Party.

 

18.          Failure to Meet Terms; Termination.
    If either Party fails to meet any one or more of the terms and conditions
    in either this Agreement or any of the Exhibits attached hereto, this Agreement
    may be terminated if that Party fails to cure the default in the performance
    of any condition or obligation under this Agreement within thirty (30) days
    of the date a written notice of default is sent to the defaulting Party.

 

19.          Grounds for Immediate Termination.
    This Agreement may be immediately terminate should either Party: (i) become
    insolvent; (ii) enter into or file a petition, assignment or proceeding seeking
    an order for relief under the bankruptcy laws of its respective jurisdiction;
    (iii) enter into a receivership of any of its assets or; (iv) enter into
    a dissolution or liquidation of it assets or an assignment for the benefit
    of its creditors.

 

20.          Dispute Resolution.        The Parties agree, after good faith negotiation, to submit any and all disputes to binding arbitration. The exclusive form for arbitration, and any litigation between the Parties, shall be Broward County, Florida.

 

21.          Assignment; Binding Effect.
    Neither Party shall assign or pledge any of its rights or obligations under
    this Agreement without the prior written consent of the other Party, which
    consent shall not be unreasonably withheld. No assignee or pledge shall have
    any rights under this Agreement unless the other Party shall have consented
    in writing to the assignment or pledge. 

 

22.          Governing Law.
    This Agreement shall be governed by, and construed in accordance with the
    laws of the State of Florida, excluding its conflict of laws provisions.
    In any action to enforce this Agreement or related to this Agreement, the
    prevailing party shall be awarded all court costs and reasonable attorney
    fees incurred.

 

23.          Subject Headings. “Article”, “Section” and other headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement.  

 

24.          Entire Agreement.
    This Agreement, the Exhibits attached hereto, and any additional addenda
    executed by both parties, represent the entire Agreement with respect to
    its subject matter. Any and all prior discussions or agreements with respect
    hereto are merged into and superseded by the terms of this Agreement. This
    Agreement may be modified or amended only in writing signed by both Parties
    which expressly refers to this Agreement and states an intention to modify
    or amend it. 

 

25.          Interpretation.    This Agreement was fully negotiated by both Parties hereto and shall not be construed more strongly against either Party hereto regardless of which Party is responsible for its preparation.

 

 

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26.          Notices.  All notices, requests, demands and other communications hereunder shall be in writing and shall be deemed to have been duly given (except as may otherwise be specifically provided herein to the contrary) if delivered by hand, by a nationally recognized overnight delivery service, by facsimile transmission followed by mail, or mailed by certified or registered mail with postage prepaid:

 

	
             
 	
            (a)
 	
            If to Kirk:
 

 

	
     
 	
  Gerald F. Price, CEO
 
	
       
 	
  Kirk Pharmaceuticals, LLC and AndaPharm, LLC
 
	
       
 	
  5360 NW 35th Avenue
 
	
       
 	
  Fort Lauderdale, FL 33309
 

 

	
     
 	
    (b)  
 	
  If to Svizera:
 

 

505 Thornall Street

Suite 304

Edison, New Jersey 08837-2260

 

or such other address or facsimile number as any of the persons designated above may have specified in a notice or communication duly given to the other designated person as provided herein.  Such notice or communication will be deemed to have been given as of the date so delivered or tale copied, or if mailed, two business days thereafter.

27.                     Partial Invalidity.
        In the event that any of the provisions of this Agreement are held to be
    unenforceable or invalid by any court of competent jurisdiction, the validity
    and enforceability of the remaining provisions will not be affected thereby.  

28.                     Counterparts.         This Agreement may be executed in one or more counterparts, each of which will be deemed the original, but all of which will constitute but one and the same document. 

IN WITNESS WHEREOF, the Parties hereto have caused their duly authorized representatives to execute this Agreement as of the day and year first written above.

 

 

	
            SvizeraUSA LLC
 	
            Kirk Pharmaceuticals, LLC
 
	
             
 	
            and AndaPharm LLC
 

 

 

 

	
            By: \s\ Vinay R. Sapte________
 	
            By: \s\
  Gerald F. Price                 
 
	Vinay R. Sapte, Member	Gerald F. Price, CEO
				

 

 

 

6

 

 

 

Exhibit A

 

Proposed Product Sheet

 

Svizera
    would like Kirk to manufacture the following Product(s):                                           
                                                                                                          

                                                                                                                                                                          
                                
                                          
                    (individually
the “Product and collectively the “Products”) in the following
Packaging Size(s):     with
the following Product Specifications:                                                                          
                                          
                                                         
    . Svizera will have the following
raw/packaging materials delivered to Kirk exclusively for the manufacture, sale
and distribution of the Products:                                                                         
                                                                                 
                      .
Kirk shall manufacture the Product in accordance with the foregoing Product Specifications
and invoice the customer as follows:                                           
                                                                       
        . Each
invoice shall be net 30 and direct payment of the total invoice amount to Svizera
at:                                                            .
Svizera shall remit the following amounts to Kirk within 10 days of its receipt,
as full payment for the Product:                                           
                                                                      
                                  . 

 

Svizera USA LLC

 

By:                                          
                  

Title:                                          
                

 

Accepted and Agreed to this ____ day of ______, 200_

Kirk Pharmaceuticals, LLC/AndaPharm LLC

 

By:                                          
                  

Title:                                          
                

 

7

 

 

 

 

Exhibit B

 

Prepayment 

 

Svizera shall make a prepayment for Products to Kirk in the amount of $350,000 (the “Prepayment”) upon execution of the Agreement. 

 

Svizera shall off-set fifty percent of each payment to Kirk pursuant to this Agreement against the Prepayment until Svizera is repaid in full for the Prepayment.

 

 

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