Document:

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                                                                   Exhibit 10.17

                             SECURED PROMISSORY NOTE

                                                        October 4, 2001
$275,000.00.00                                          Rocky Hill, Connecticut

     FOR VALUE RECEIVED, Walter W. Schroeder, III (the "Maker") promises to pay
to Proton Energy Systems, Inc., a Delaware corporation (the "Company"), or
order, at the offices of the Company or at such other place as the holder of
this Note may designate, the principal sum of TWO HUNDRED SEVENTY FIVE THOUSAND
DOLLARS ($275,000.00), together with interest on the unpaid principal balance of
this Note from time to time outstanding at the prime rate in effect from time to
time. The term "prime rate" at any time shall mean the rate of interest then
most recently announced by Chase Manhattan Bank as its prime rate. Principal and
accrued interest shall be due and payable as follows:

     (i)  on the last day of each calendar month during the term of this Note
          (beginning with October 31, 2001), until this Note is repaid in full,
          the Maker shall pay $10,000.00 to the Company; and

     (ii) the entire outstanding balance of principal and accrued but unpaid
          interest shall be paid in full on October 3, 2003.

     "Makers Affiliates" shall mean the Makers' spouse, any child or grandchild
of Maker or any trust, corporation or other entity organized for the benefit of
Maker or any of the foregoing relatives of Maker.

     Interest on this Note shall be computed on the basis of a year of 365 days
for the actual number of days elapsed. All payments made under this Note shall
be applied first to accrued but unpaid interest and then to reduce the principal
balance of this Note. All payments by the Maker under this Note shall be in
immediately available funds.

     Payment of this Note is secured by a security interest in certain property
of the Maker pursuant to a pledge agreement of even date herewith between the
Maker and the Company (the "Pledge Agreement").

     This Note shall become immediately due and payable without notice or demand
upon the occurrence at any time of any of the following events of default
(individually, "an Event of Default" and collectively, "Events of Default"):

     (i)  the final date of the Maker's employment with the Company;

                                       -1-

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     (ii)  the institution against the Maker or any indorser or guarantor of
           this Note of any proceedings under the United States Bankruptcy Code
           or any other federal or state bankruptcy, reorganization,
           receivership, insolvency or other similar law affecting the rights of
           creditors generally, which proceeding is not dismissed within thirty
           (30) days of filing;

     (iii) the institution by the Maker or any indorser or guarantor of this
           Note of any proceedings under the United States Bankruptcy Code or
           any other federal or state bankruptcy, reorganization, receivership,
           insolvency or other similar law affecting the rights of creditors
           generally or the making by the Maker or any indorser or guarantor of
           this Note of a composition or an assignment or trust mortgage for the
           benefit of creditors;

     (iv)  the occurrence of any event of default under the Pledge Agreement; or

     (v)   the Maker dies or becomes incapacitated, or a conservator or guardian
           of the Maker is appointed, or the Maker suffers any other legal
           disability.

     Upon the occurrence of an Event of Default, the holder shall have then, or
at any time thereafter, all of the rights and remedies afforded by the Uniform
Commercial Code as from time to time in effect in the State of Connecticut or
afforded by other applicable law.

     Every amount overdue under this Note shall bear interest from and after the
date on which such amount first became overdue at an annual rate which is two
(2) percentage points above the rate per year specified in the first paragraph
of this Note. Such interest on overdue amounts under this Note shall be payable
on demand and shall accrue and be compounded monthly until the obligation of the
Maker with respect to the payment of such interest has been discharged (whether
before or after judgment).

     In no event shall any interest charged, collected or reserved under this
Note exceed the maximum rate then permitted by applicable law and if any such
payment is paid by the Maker, then such excess sum shall be credited by the
holder as a payment of principal.

     All payments by the Maker under this Note shall be made without set-off or
counterclaim and be free and clear and without any deduction or withholding for
any taxes or fees of any nature whatever, unless the obligation to make such
deduction or withholding is imposed by law. The Maker shall pay and save the
holder harmless from all liabilities with respect to or resulting from any delay
or omission to make any such deduction or withholding required by law.

     No reference in this Note to the Pledge Agreement or any guaranty or other
document shall impair the obligation of the Maker to pay all amounts under this
Note strictly in accordance with the terms of this Note.

                                       -2-

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     The Maker agrees to pay on demand all costs of collection, including
reasonable attorneys' fees, incurred by the holder in enforcing the obligations
of the Maker under this Note.

     No delay or omission on the part of the holder in exercising any right
under this Note or the Pledge Agreement shall operate as a waiver of such right
or of any other right of such holder, nor shall any delay, omission or waiver on
any one occasion be deemed a bar to or waiver of the same or any other right on
any future occasion. The Maker and every indorser or guarantor of this Note
regardless of the time, order or place of signing waives presentment, demand,
protest and notices of every kind and assents to any extension or postponement
of the time of payment or any other indulgence, to any substitution, exchange or
release of collateral, and to the addition or release of any other party or
person primarily or secondarily liable.

     This Note may be prepaid in whole or in part at any time or from time to
time by the Maker. Any such prepayment shall be without premium or penalty.

     None of the terms or provisions of this Note may be excluded, modified or
amended except by a written instrument duly executed on behalf of the holder
expressly referring to this Note and setting forth the provision so excluded,
modified or amended.

     All rights and obligations hereunder shall be governed by the laws of the
State of Connecticut and this Note is executed as an instrument under seal.

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

                                                 ______________________________
                                                 Walter W. Schroeder, III

                                       -3-<PAGE>

                                                                 Exhibit 10.26.1

                         TENTH AMENDMENT AND CONSENT TO
                           LOAN AND SECURITY AGREEMENT
                           ---------------------------

TENTH AMENDMENT AND CONSENT, dated as of August 20, 2001 (this "Amendment"), to
                                                                ---------
the Loan and Security Agreement referred to below by and among GENERAL ELECTRIC
CAPITAL CORPORATION, a Delaware corporation ("Lender"), PAR PHARMACEUTICAL,
                                              ------
INC., a New Jersey corporation ("Borrower"), PHARMACEUTICAL RESOURCES, INC., a
                                 --------
New Jersey corporation ("Parent"), NUTRICEUTICAL RESOURCES, INC., a New York
                         ------
corporation ("NRI"), and PARCARE, LTD., a New York corporation ("ParCare").
              ---                                                -------
Parent, NRI and ParCare are hereinafter referred to as "Guarantors".
                                                        ----------

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

WHEREAS, Lender, Borrower and Guarantors are parties to that certain Loan and
Security Agreement, dated as of December 15, 1996 (as amended, supplemented or
otherwise modified prior to the date hereof, the "Loan Agreement"); and
                                                  --------------

WHEREAS, Lender, Borrower and Guarantors have agreed to amend the Loan Agreement
in the manner, and on the terms and conditions, provided for herein.

NOW THEREFORE, in consideration of the premises and for other good and valuable
consideration, the receipt, adequacy and sufficiency of which are hereby
acknowledged, the parties to this Amendment hereby agree as follows:

       1. Definitions. Capitalized terms not otherwise defined herein shall have
          -----------
the meanings ascribed to them in the Loan Agreement.

       2. Amendment to Recitals to Loan Agreement.  Recital A of the Loan
          ---------------------------------------
Agreement is hereby amended as of the Amendment Effective Date (as hereinafter
defined) by (a) deleting the text "5 years" set forth under the caption "Term:"
                                                                         ----
and inserting in lieu thereof the text "78 months": and (b) deleting the text
under the caption "Prepayment Fee:" and inserting in lieu thereof the text
                   --------------
"0.25%".

       3. Amendment to Section 5 of the Loan Agreement. As of the Amendment
          --------------------------------------------
Effective Date (as defined below), Section 5(b) of the Loan Agreement is hereby
                                   ------------
amended and restated in its entirety to read as follows:

       "(b) except as otherwise permitted in this Section 5 below, make any
       investment (including any investment in or advance to any other Person
       for research and development) in, or make or accrue loans or advances of
       money to, any Person, other than investments for research and development
       in Persons which are not Credit Parties which, together with the
       aggregate amount of research and development expenses of the Credit
       Parties, do not exceed $10,250,000 in the Fiscal Year ending on or about
       December 31, 2001, $12,000,000 in the Fiscal Year ending on or about
       December 31, 2002 and $6,100,000 in the period ending on or about June
       30, 2003;"

       4. Amendment to Schedule A to the Loan Agreement.  Schedule A to the Loan
          ---------------------------------------------   ----------
Agreement is hereby amended as of the Amendment Effective Date as follows:

       (a) the definition of  "Capital Expenditures" is deleted in its
                               --------------------
           entirety and the following new definition is inserted in lieu
           thereof:

"Capital Expenditures" shall mean all payments or accruals (including Capital
 --------------------
Lease Obligations) for any fixed assets or improvements or for replacements,
substitutions or additions thereto, that have a useful life of more than one
year and that are required to be capitalized under GAAP, including the purchase
or license of pharmaceutical product or active pharmaceutical ingredient
rights."

       (b) the definition of "Commitment Maturity Date" is deleted in its
                              ------------------------
           entirety and the following new definition is inserted in lieu
           thereof:

       "Commitment Maturity Date" shall mean the earliest of (i) June 30, 2003,
        ------------------------
       (ii) the date Lender's obligation to advance funds is terminated and the
       Obligations are declared to be due and payable pursuant to Section 7.2
       and (iii) the date of prepayment in full by Borrower of the Obligations
       in accordance with the provisions of

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       Section 1.2(b)."

       (c) the definition of "Commitment Termination Date" is deleted in its
                              --------------------------
           entirety and the following new definition is inserted in lieu
           thereof:

       "'Commitment Termination Date' shall mean the earliest of (i) June 30,
         ---------------------------
       2003, (ii) the date of Termination of Lender's obligation to advance
       funds pursuant to Section 7.2 and (iii) the date of prepayment in full by
       Borrower of the Obligations in accordance with the provisions of Section
       1.2(b)."

       (d) the definition of "Sano Stock Reserve" is deleted in its entirety and
                              ------------------
           the following new definition is inserted in lieu thereof:

       "'Sano Stock Reserve' shall mean a reserve in the amount of $1,426,400,
         ------------------
       established pursuant to Section 1.15 hereof; provided, however, that such
                               ------------         --------  -------
       reserve shall be reduced to (a) $713,200 upon receipt by Lender of
       Borrower's reviewed Financial Statements and supporting documentation for
       the Fiscal Quarter ending June 30, 2001, as required by Section 4.1(c) of
       the Loan Agreement, so long as no Default shall have occurred and be
       continuing on the date of such receipt and (b) $-0- upon receipt by
       Lender of Borrower's audited Financial Statements and supporting
       documentation for the Fiscal Year ending December 31, 2001, as required
       by Section 4.1(d) of the Loan Agreement, so long as no Default shall have
       occurred and be continuing on the date of such receipt."

       5. Amendment to Schedule D to the Loan Agreement. Schedule D to the Loan
          ---------------------------------------------  ----------
Agreement is hereby amended as of the Amendment Effective date by deleting
Section 4 of such schedule in its entirety and inserting in lieu thereof the
---------
following new section to read as follows:

"4.  Prepayment Fee:  An amount equal to the Maximum Amount multiplied by:
     --------------
       0.25% if Lender's obligation to make or incur Revolving Credit Advances
       is terminated by Borrower after the fourth anniversary of the Closing
       Date and on or before June 30, 2003, payable on the Commitment Maturity
       Date.

Borrower acknowledges and agrees that (a) it would be difficult or impractical
to calculate Lender's actual damages from Borrower's early termination of
Lender's Revolving Credit Loan obligations pursuant to Section 1.2(b) of the
Agreement, (b) the Prepayment Fees provided above are intended to be fair and
reasonable approximations of such damages and (c) the Prepayment Fees are not
intended to be penalties."

       6. Amendment to Schedule F to the Loan Agreement. Schedule F to the Loan
          ---------------------------------------------  ----------
Agreement is hereby amended and restated in its entirety as of the Amendment
Effective date to read as set forth in Schedule F attached hereto.
                                       ----------

       7. Consent. Lender hereby consents to the execution and delivery by
          -------
Borrower of the Master Lease Agreement, dated as of the date hereof, between
Borrower and General Electric Capital Corporation (Equipment Finance Division),
and the consummation of the transactions contemplated therein (the "Sale"). The
                                                                    ----
parties agree that the Sale shall not constitute a violation of the Credit
Agreement, and the consent in the immediately preceding sentence shall be,
subject to Borrower immediately prepaying the Revolving Credit Loan in an amount
equal to the net proceeds from the Sale.

       8. Representations and Warranties. To induce Lender to enter into this
          ------------------------------
Amendment, each Credit Party hereby represents and warrants that:

       A. The execution, delivery and performance of this Amendment and the
          performance of the Loan Agreement, as amended hereby (the "Amended
                                                                     -------
          Loan Agreement"), by each Credit Party: (i) are within their
          --------------
          respective corporate powers; (ii) have been duly authorized by all
          necessary corporate and shareholder action; and (iii) are not in
          contravention of any provision of their respective certificates or
          articles of incorporation or by-laws or other organizational
          documents.

       B. This Amendment has been duly executed and delivered by or on behalf of
          each Credit Party.

       C. Each of this Amendment and the Amended Loan Agreement constitutes a
          legal, valid and binding obligation of each Credit Party enforceable
          against each Credit Party in accordance with its terms, except as
          enforceability may be limited by applicable bankruptcy, insolvency,

                                      -23-

<PAGE>

          reorganization, moratorium or similar laws affecting creditors' rights
          generally and by general equitable principles (whether enforcement is
          sought by proceedings in equity or at law).

       D. No Default (other than those waived pursuant hereto) has occurred and
          is continuing both before and after giving effect to this Amendment.

       E. No action, claim or proceeding is now pending or, to the knowledge of
          each Credit Party, threatened against any Credit Party, at law, in
          equity or otherwise, before any court, board, commission, agency or
          instrumentality of any federal, state, or local government or of any
          agency or subdivision thereof, or before any arbitrator or panel of
          arbitrators, which challenges any Credit Party's right, power, or
          competence to enter into this Amendment or, to the extent applicable,
          perform any of its obligations under this Amendment, the Amended Loan
          Agreement or any other Loan Document, or the validity or
          enforceability of this Amendment, the Amended Loan Agreement or any
          other Loan Document or any action taken under this Amendment, the
          Amended Loan Agreement or any other Loan Document.

       F. The representations and warranties of the Credit Parties contained in
          the Loan Agreement and each other Loan Document shall be true and
          correct on and as of the Amendment Effective Date with the same effect
          as if such representations and warranties had been made on and as of
          such date, except that any such representation or warranty which is
          expressly made only as of a specified date need be true only as of
          such date.

       9. No Other Amendment. Except as expressly provided in Sections 2 through
          ------------------
6 hereof, the Loan Agreement shall be unmodified and shall continue to be in
full force and effect in accordance with its terms. Except as expressly provided
herein, this Amendment shall not be deemed a waiver of any term or condition of
any Loan Document and shall not be deemed to prejudice any right or rights which
Lender may now have or may have in the future under or in connection with any
Loan Document or any of the instruments or agreements referred to therein, as
the same may be amended from time to time.

       10. Outstanding Indebtedness; Amendment of Claims. Each Credit Party
           ---------------------------------------------
hereby acknowledges and agrees that as of August 17, 2001 the aggregate
outstanding principal amount of the Revolving Credit Loan is $7,276,746.44. Each
Credit Party hereby waives, releases, remises and forever discharges Lender and
each other Indemnified Person from any and all Claims of any kind or character,
known or unknown, which each Credit Party ever had, now has or might hereafter
have against Lender which relates, directly or indirectly, to any acts or
omissions of Lender or any other Indemnified Person on or prior to the date
hereof.

       11. Expenses. Borrower hereby reconfirms its obligations pursuant to
           --------
Section 10.2 of the Loan Agreement to pay and reimburse Lender for all
reasonable out-of-pocket expenses (including, without limitation, reasonable
fees of counsel) incurred in connection with the negotiation, preparation,
execution and delivery of this Amendment and all other documents and instruments
delivered in connection herewith.

       12. Effectiveness. This Amendment shall become effective as of the date
           -------------
hereof (the "Amendment Effective Date") only upon satisfaction in full in the
             ------------------------
judgment of the Lender of each of the following conditions on or prior to August
20, 2001:

       A. Amendment. Lender shall have received two original copies of this
          ---------
          Amendment duly executed and delivered by Lender and each Credit Party.

       B. Payment of Expenses. Borrower shall have paid to Lender all costs and
          -------------------
          expenses (including a non-refundable amendment and waiver fee in the
          amount of $15,000 owing in connection with this Amendment and the
          other Loan Documents and due to Lender (including, without limitation,
          reasonable legal fees and expenses).

                                      -24-

<PAGE>

       C. Representations and Warranties. The representations and warranties of
          ------------------------------
          each Credit Party contained in this Amendment shall be true and
          correct on and as of the Amendment Effective Date.

       13. GOVERNING LAW. THIS AMENDMENT SHALL BE GOVERNED BY, AND INTERPRETED
           -------------
IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

       14. Counterparts. This Amendment may be executed by the parties hereto on
           ------------
any number of separate counterparts and all of said counterparts taken together
shall be deemed to constitute one and the same instrument.

                            (SIGNATURE PAGE FOLLOWS)

                                      -25-

<PAGE>

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly
executed and delivered as of the day and year first above written.

                                           Borrower:
                                           --------

                                           PAR PHARMACEUTICAL, INC.

                                           By: /s/Dennis O'Connor
                                               --------------------------------
                                           Name:  Dennis O'Connor
                                           Title: VP-CFO

                                           Lender:
                                           ------

                                           GENERAL ELECTRIC CAPITAL CORPORATION

                                           By: /s/ Michael Lustbader
                                               --------------------------------
                                           Name: Michael Lustbader
                                           Its:  Duly Authorized Signatory

                                           Parent:
                                           ------

                                           PHARMACEUTICAL RESOURCES, INC.

                                           By: /s/ Dennis O'Connor
                                               --------------------------------
                                           Name:   Dennis O'Connor
                                           Title:  VP-CFO

                       (SIGNATURES CONTINUED ON NEXT PAGE)

                                      -26-

<PAGE>

                                           Subsidiary Guarantors:
                                           ---------------------

                                           NUTRICEUTICAL RESOURCES, INC.

                                           By: /s/ Dennis O'Connor
                                               --------------------------------
                                           Name:  Dennis O'Connor
                                           Title: VP-CFO

                                           PARCARE, LTD.

                                           By: /s/ Dennis O'Connor
                                               --------------------------------
                                           Name:  Dennis O'Connor
                                           Title: VP-CFO

                                      -27-

<PAGE>

                                   Schedule F
                               FINANCIAL COVENANTS

       1. Minimum EBIT. Parent and its Subsidiaries on a consolidated basis
          ------------
shall maintain for each four Fiscal Quarter period, commencing with the four
Fiscal Quarter period ending on or about March 31, 2001, EBIT for such period of
not less than the amount for such period set forth below:

       Four Fiscal Quarter Period Ending on or about:               Minimum EBIT
       ---------------------------------------------                ------------
       March 31, 2001                                                 $2,300,000
       June 30, 2001                                                   (300,000)
       September 30, 2001                                                300,000
       December 31, 2001                                               2,400,000
       March 31, 2002                                                  2,568,000
       June 30, 2002                                                   5,218,000
       September 30, 2002                                              2,734,000
       December 31, 2002                                               2,748,000
       March 31, 2003                                                  2,748,000
       June 30, 2003                                                   2,748,000

       2. Minimum Tangible Net Worth. Parent and its Subsidiaries on a
          --------------------------
consolidated basis shall maintain, as at the end of each Fiscal Quarter,
Tangible Net Worth of not less than the amount for such period set forth below:

       Fiscal Quarter Ending on or about:             Minimum Tangible Net Worth
       ---------------------------------              --------------------------
       March 31, 2001                                                $44,000,000
       June 30, 2001                                                  41,700,000
       September 30, 2001                                             42,600,000
       December 31, 2001                                              45,600,000
       March 31, 2002                                                 48,200,000
       June 30, 2002                                                  45,700,000
       September 30, 2002                                             46,600,000
       December 31, 2002                                              48,800,000
       March 31, 2003                                                 49,800,000
       June 30, 2003                                                  50,200,000

       3. Capital Expenditures. Parent and its Subsidiaries on a consolidated
          --------------------
basis shall not make aggregate Capital Expenditures in excess of $7,500,000 for
the Fiscal Year ending on or about December 31, 2001, $9,000,00 for the Fiscal
Year ending on or about December 31, 2002 and $4,500,000 for the period ending
on or about June 30, 2003.

For purposes of this covenant in Schedule F the following terms shall have the
                                 ----------
meanings set forth below:

"EBIT" shall mean, for any period, the Net Income (Loss) of Parent and its
-----
Subsidiaries on a consolidated basis for such period, plus interest expense, tax
                                                      ----
expense and extraordinary losses and minus extraordinary gains, in each case, of
                                     -----
Parent and its Subsidiaries on a consolidated basis for such period determined
in accordance with GAAP to the extent included in the determination of such Net
Income (Loss).

"Net Income (Loss)" shall mean with respect to any Person and for any period,
 ----------------
the aggregate net income (or loss) after taxes of such Person for such period,
determined in accordance with GAAP.

"Tangible Net Worth" shall mean, with respect to any Person at any date, all
 ------------------
amounts which, in accordance with GAAP, would be included under stockholders'
equity on a consolidated balance sheet of such Person at such date less the
                                                                   ----
aggregate of all intangibles in conformity with GAAP (including Intellectual
Property, goodwill, organization expenses, treasury stock, all deferred
financing and unamortized debt discount expenses, and all current and
non-current deferred tax benefits).

                                      -28-

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