Document:

Exhibit 10.52

 Exhibit 10.52 
  
 BROWN & WILLIAMSON 
 TOBACCO 
  
 [*] 
 [*] 
  
 October 3, 2003 
  
 Mr. Jonnie R. Williams 
 Chief Executive Officer 
 Star Scientific, Inc. 
 801 Liberty Way 
 Chester, VA 23836 
  

Dear Jonnie: 
  
 I realize you are not in a position right now to resolve the Hard Tobacco royalty issue. If you are able to reach an agreement with [*] or [*], that of course should change. 
  
 In the meantime, I wanted to confirm as much as we could about how we move forward, barring
any legal settlements or other improvements in your ability to pay the outstanding receivables sooner. 
  

	 	1.	Beginning January 1, 2004 Star will be charged interest at the rate of prime plus 1% on the $8,395,648.93 Account Receivable debt. 

  

	 	2.	Beginning January 1, 2004, Star will pay B&W a minimum of $250,000 per month until the debt has been paid off. Star will attempt to pay a total of $2 million by June 30, 2004
and an additional $2 million by December 31, 2004. 

  

	 	3.	To the extent Star obtains a refund from State escrow funds or is granted relief from paying such funds, Star will pay B&W a minimum of one half of each such amount until the
debt is paid off. 

  

	 	4.	Any royalty obligation B&W may have under Section 2(a)(iii) and Section 2(a)(ii) of the April 25, 2001 Other Low TSNA Tobacco Royalty Agreement will not accrue or be owed any
sooner than January 1, 2004. 

  
  

	[*]	Certain information on this page has been omitted and will be filed separately with the Securities and Exchange Commission. Confidential treatment will be requested with respect to
the omitted portions. 

 Mr. Jonnie R. Williams 
 October 3, 2003 
 Page 2 
  

	 	5.	It is confirmed that under Paragraph 2(a)(ii) and (a)(iii) of the April 25, 2001 Other Low TSNA Royalty Agreement, B&W’s obligation to pay royalties shall be based on the
lowest ongoing annual royalty rate established with the big 3 tobacco companies. To the extent Star receives a lump sum payment instead of an ongoing royalty rate in return for a license, then Star and B&W will, within 60 days thereafter,
negotiate in good faith an annual royalty rate that will be based on the lump sum payment and the equivalent royalty rate implied thereby. 

  
  

									
	 Sincerely,
	 	 	 	 Accepted and Agreed:
 Star Scientific, Inc.

			
	(signed)	 	 	 	(signed)
				
	[*]	 	 	 	By:	 	Jonnie R. Williams
				
	 	 	 	 	Title:	 	CEO
				
	 	 	 	 	Date:	 	10/15/03

  
  
  

	[*]            	Certain information on this page has been omitted and will be filed separately with the Securities and Exchange Commission. Confidential treatment will be requested with respect to
the omitted portions.Exhibit 10.53

 Exhibit 10.53 
  
 LOAN AGREEMENT 
  
 March 22, 2004 
  
 This Loan Agreement (“Agreement”) is entered into as of March 22, 2004 between Star Scientific, Inc. a Delaware corporation with a place of
business at 801 Liberty Way, Chester, Virginia, 23836 and Jonnie R. Williams, Sr., Chief Executive Officer (“CEO”) of Star Scientific, Inc. with a home address at 1 Starwood Lane, Manakin-Sabat, Virginia, 23103. 
  
 The parties agree as follows: 
  
 1. ADVANCES AND TERMS OF PAYMENT. 
  
 1.1 Revolving Advances. 
  
 In his role as CEO, Williams, in his sole discretion, and based upon the
need of Star Scientific, Inc. (the “Company”), will individually make advances (the “Revolving Advances”) to the Company in such amount necessary to meet the ongoing financial needs of the Company, with the understanding that the
outstanding Revolving Advances will at no time exceed the sum of Ten Million Dollars ($10,000,000) (the “Revolving Advance Limit”). 
  
 1.2 Initial Advance. 
  
 Beginning in October 2003, Williams has advanced the Company various amounts up to a total of approximately Five Million Dollars ($5,000,000), of which
Four Million Five-Hundred Thousand Dollars ($4,500,000.00) currently remains outstanding. For purposes of this Agreement, the initial advances will be determined in calculating interest pursuant to Section 1.3 below. Each subsequent advance after
the date of this Agreement will be deemed to be made on the date that funds are transferred to one of the Company’s corporate bank accounts. 
  

 1 

 1.3 Interest. 
  
 Interest will be charged on the amount of the outstanding Revolving Advances and shall accrue at the applicable interest
rate (as defined below), commencing on the date of each advance and continuing on any outstanding amount advanced to the Company. The term “Applicable Interest Rate” shall be at a rate of 8% per annum, computed on the basis of the number
of revolving days elapsed from the date of the advance and a year of 365 days. 
  
 2. REPAYMENT OF OBLIGATIONS. 
  
 2.1 Repayment. 
  
 Williams agrees that he will
not make any demand, nor have any right to payment of the revolving advances or interest prior to March 31, 2005. Thereafter, advances under this Agreement and accrued interest shall be payable at such time that the Company has sufficient funds to
make repayment on advances previously made to the Company, subject to any repayment restrictions in other agreements entered into by the Company. The decision as to repayment of advances shall be in the sole discretion of the Company’s CEO,
based upon his determination of the Company’s needs and financial resources. Any repayments shall be applied on a first-in-first-out basis with respect to the Revolving Advances, with the payments being applied to the earliest outstanding
advances first. 
  
 3. TERM OF AGREEMENT. 
  
 3.1 Term. 
  
 This Agreement shall be effective as of the date first set forth above and
shall continue in full force and effect for a term ending at the earlier of (1) one year from the date of this Agreement or (2) the date on which the Company’s Board of Directors determines that the Company has returned to profitability and no
longer needs to obtain advances from Mr. Williams, with the understanding that the repayment of advances and interest shall occur no earlier than March 31, 2005. 
  

 2 

 4. CONVERSION OF DEBT TO EQUITY. 
  
 4.1 Conversion. 
  
 To the extent permitted by law, the Company’s Board of Directors may, in its sole discretion, from time-to-time determine to convert all or a portion
of the revolving advances and accrued interest to common stock of Star Scientific, Inc. If the Board of Directors elects to convert all or a portion of the outstanding amount, the conversion price will be the closing price of the Company’s
stock on the trading day immediately before the Board votes to elect to convert all or a portion of the outstanding amount. The Board will promptly notify Mr. Williams of an election to convert debt to equity and promptly cause the Company to issue
new shares to Mr. Williams equal to conversion price, with the understanding that any partial share that would result from the conversion calculation shall be rounded up to a whole share of the Company’s stock. 
  
 5. MISCELLANEOUS PROVISIONS. 
  
 5.1 Notices. 
  
 Any notice required to be provided hereunder shall be in writing and
personally delivered or sent by registered or certified mail postage prepaid, return receipt requested to the Company or Williams, as the case may be, at the addresses set forth below. 
  

 3 

 5.2 Choice of Law and Venue. 
  
 This Agreement shall be construed in accordance with the laws of the Commonwealth of Virginia without giving effect to its
conflicts of law principles. All actions or proceedings arising in connection with this Agreement shall be tried and litigated in the courts located in the Commonwealth of Virginia. 
  
 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed and delivered at the Company’s place
of business in Chester, Virginia. 
  

					
	 	 	STAR SCIENTIFIC, INC.
		
	 	 	 /s/    PAUL L. PERITO

	 Witness:
	 	By:	 	Paul L. Perito
	 	 	 	 	Chairman, President & COO
	 	 	 	 	7475 Wisconsin Avenue
	 	 	 	 	Suite 850
	 	 	 	 	Bethesda, MD 20814
		
	
	 	 /s/    JONNIE R. WILLIAMS,
SR.

	 Witness:
	 	By:	 	Jonnie R. Williams, Sr.
	 	 	 	 	1 Starwood Lane
	 	 	 	 	Manakin-Sabat, VA 23103

  

 4Exhibit 10.54

 Exhibit 10.54 
  
 AMENDMENT TO MASTER LEASE AGREEMENT 
 AND SCHEDULE 
  
 Whereas General Electric Corporation
(“GECC”), as Lessor, and Star Scientific, Inc. (“Scientific”), as Lessee, entered into that certain Master Lease Agreement dated as of June 29, 2001 (the “Master Lease”); and 
  
 Whereas GECC assigned its interest in the Master Lease to Southern Pacific Bancapital under
that certain Master Assignment Agreement between GECC, as assignor, and Southern Pacific Bancapital, as assignee, dated August 15, 2001; and 
  
 Whereas Southern Pacific Bancapital, as Lessor, and Scientific, as Lessee, entered into that certain Equipment Schedule No. S-1 dated August 17, 2001 (the
“Schedule”) which was attached to and became a part of the Master Lease; and 
  
 Whereas the Schedule was amended by that certain Amendment No. 1 to Equipment Schedule No. S-1 dated January 4, 2002 by and between Southern Pacific Bancapital, Scientific and Star Tobacco, Inc.
(“Tobacco”), whereby Tobacco was added as a Co-Lessee under the Schedule; and 
  
 Whereas the Lease and the Schedule, as amended, will hereafter be referred to collectively as the “Complete Lease;” and 
  
 Whereas Southern Pacific Bancapital was a name under which Southern Pacific Bank did business; and 
  
 Whereas Southern Pacific Bank was placed in receivership on February 7, 2003, and the Federal
Deposit Insurance Corporation was appointed as receiver for Southern Pacific Bank (“FDIC/Receiver”); and 
  
 Whereas by letter dated October 13, 2003, Quantum/G&A Joint Venture (“Quantum”), as agent for the FDIC/Receiver, requested Scientific and Tobacco to
provide a formal certification of compliance with all the terms of the Complete Lease; and 
  
 Whereas neither Scientific nor Tobacco provided such certification to Quantum within 30 days of the request; and 
  
 Whereas Scientific and Tobacco are currently in default of several of their covenants in the Master Lease, among them, (1) Paragraph G(8) of the Schedule regarding (a)
the ratio of Adjusted Cash Flow to be Fixed Charges and (b) evidence of the maintenance of the contract between Brown and Williamson Tobacco Corp and Scientific and Tobacco; (2) Paragraph 9 of the Master Lease regarding insurance and proof of
insurance; and (3) Paragraph 13 of the Master Lease re providing the certification requested within 30 days of written notice from the FDIC/Receiver, and 

 Whereas Scientific and Tobacco wish to avert having the Complete Lease declared in default; and 
  
 Whereas FDIC Receiver wishes to have Scientific and Tobacco perform more closely in
accordance with the terms of the Complete Lease. 
  
 NOW THEREFORE, in
consideration of the reciprocal benefits to be realized from this Agreement, the parties hereto agree to amend the Complete Lease as follows: 
  

	 	1.	FDIC/Receiver waives for the Basic Term of the Complete Lease that portion of Section G(8) of the Schedule which requires Scientific and Tobacco to maintain a ratio of 1.25 or
greater between their Adjusted Cash Flow and Fixed Charges. 

  

	 	2.	Scientific and Tobacco will bring themselves into compliance with all the requirements of the Complete Lease, other than the provision waived herein, by January 15, 2004, and will
provide as certificate to such effect to FDIC/Receiver by January 13, 2004. 

  

	 	3.	Section 2(b) of the Master Lease is amended to read that Scientific and Tobacco will continue to pay their monthly lease payments on the first day of each month via ACH payment
mechanism. 

  

	 	4.	Scientific and Tobacco waive their right to put back the equipment to FDIC/Receiver at the end of the Basic Term (i.e., August 31, 2005), as provided in Sections 10, 17 and 18 of
the Master Lease and Sections 5 and 17 of the Schedule. The only option remaining to Scientific and Tobacco at the end of the Basic Term as regards the equipment is to purchase all of the equipment at ten percent (10%) of the Capitalized
Lessor’s Cost, subject to a $27,365.97 credit described in Item No. 5 below. 

  

	 	5.	Scientific and Tobacco will make two cash payments to FDIC/Receiver over and above their monthly lease payments, as follows: $9,121.99 by January 12, 2004, and $18,243.98 by
February 28, 2004. Both payments will be applied as a credit to the purchase price of the equipment at the end of the Basic Term, i.e., $299,114.41 (10% of the Capitalized Lessor’s Cost) less $27,365.97 (credit for 2 payments) = $271,748.44.

  

	 	6.	In the event Scientific and Tobacco fail to comply with (1) any terms of the Complete Lease, other than that provision waived herein, and (2) this Agreement, the FDIC/Receiver may
declare the Complete Lease in default and may exercise all remedies granted under the Complete Lease and at law or equity. 

  

	 	7.	In the event any provision of the Complete Lease conflicts with the terms of this Agreement, this Agreement shall control. All terms of the Complete Lease not amended by this
Agreement remain in full force and effect. 

  
 Executed this the 16
day of January, 2004. 

			
	FEDERAL DEPOSIT INSURANCE CORPORATION AS RECEIVER OF
SOUTHERN PACIFIC BANK
		
	By:	 	/s/    Victor M. Robert        
	 	 	

	Name:	 	Victor M. Robert
	Title:	 	Attorney-in Fact
	
	STAR SCIENTIFIC, INC.
		
	By:	 	/s/    Jonnie Williams        
	 	 	

	Name:	 	Jonnie Williams
	 	 	Chief Executive Officer
	
	STAR TOBACCO, INC.
		
	By:	 	/s/    Paul H. Lamb III        
	 	 	

	Name:	 	Paul H. Lamb III
	 	 	President

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