Document:

EXHIBIT

10.2

 

 

STRAIGHT NOTE

 

 

 

	

  $100,000

  	

   

  	

  South El Monte,

  California

  	

   

  	

  May 15, 2002

  

 

 

 

                For value

received, Lee Pharmaceuticals promises to pay Mark DiSalvo or order, at South

El Monte, California the sum of ONE HUNDRED THOUSAND DOLLARS, with interest from

May 15, 2002, on unpaid principal at the rate of twenty-four (24) per cent per

annum; principal is payable monthly, commencing on June 25, 2002, with monthly

principal payments of $5,000.  Interest

shall be calculated on the basis of the unpaid principal balance daily, based

on a 365-day year, actual day month and payable monthly.  Principal and interest shall be payable in

lawful money of the United States.  If

action were instituted on this note, I promise to pay such sum as the Court may

fix as attorney’s fees.  This note is

secured by the trademarks on the product brands Unguentine®, and

Unguentine® Plus.

 

 

 

 

 

	

  MAY 15, 2002

  	

   

  	

  RONALD G. LEE

  	

   

  
	

  Date

  	

   

  	

  Lee Pharmaceuticals - Ronald G. Lee

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

  MAY 15, 2002

  	

   

  	

  MICHAEL L. AGRESTI

  	

   

  
	

  Date

  	

   

  	

  Lee Pharmaceuticals - Michael L. AgrestiEXHIBIT

10.3

 

 

 

STRAIGHT NOTE

 

 

 

	

  $150,000

  	

   

  	

  South El Monte,

  California

  	

   

  	

  May 24, 2002

  

 

 

                For value

received, Lee Pharmaceuticals promises to pay Mark DiSalvo or order, at South

El Monte, California the sum of ONE HUNDRED AND FIFTY THOUSAND DOLLARS, with

interest from May 24, 2002, on unpaid principal at the rate of thirty (30) per

cent per annum; principal is payable at maturity.  This note has a due date of July 24, 2002.  Interest shall be calculated on the basis of

the unpaid principal balance daily, based on a 365-day year, actual day month

and payable monthly.  Principal and

interest shall be payable in lawful money of the United States.  If action were instituted on this note, I

promise to pay such sum as the Court may fix as attorney’s fees.  This note is not secured.  The balloon payment on this note is to be

paid out of the proceeds from the sale of Astring-o-Sol®.

 

 

 

 

 

	

  MAY 15,2002

  	

   

  	

  RONALD G. LEE

  	

   

  
	

  Date

  	

   

  	

  Lee Pharmaceuticals - Ronald G. Lee

  
	

   

  	

   

  	

   

  
	

  MAY 15, 2002

  	

   

  	

  MICHAEL L. AGRESTI

  	

   

  
	

  Date

  	

   

  	

  Lee Pharmaceuticals - Michael L. AgrestiEXHIBIT

10.4

 

 

STRAIGHT NOTE

 

 

 

	

  $200,000

  	

   

  	

  South El Monte,

  California

  	

   

  	

  July 1, 2002

  

 

 

 

                For value

received, Lee Pharmaceuticals promises to pay Roberts Proprietaries Inc. or

order, at South El Monte, California the sum of TWO HUNDRED THOUSAND DOLLARS,

with interest from July 1, 2002, on unpaid principal at the rate of twenty (20)

per cent per annum; principal is payable monthly, commencing on August 1, 2002,

with monthly principal payments of $5,000. 

Interest shall be calculated on the basis of the unpaid principal

balance daily, based on a 365-day year, actual day month and payable

monthly.  Principal and interest shall

be payable in lawful money of the United States.  If action were instituted on this note, I promise to pay such sum

as the Court may fix as attorney’s fees. 

This note is secured by the trademark on the product brand Zip®.

 

                This promissory

note replaces the $200,000 promissory note, dated June 27, 2001, which has been

paid down to $145,000 as of June 25, 2002. 

All other terms and conditions (including the Security Agreement,

Amendment No. 1 to 1988 Security Agreement, Guarantee of Ronald G. Lee and

Exhibits) of the December 1, 1998, original $500,000 promissory note, remain in

force except as stated in the above paragraph of this new promissory note,

dated July 1, 2002.

 

 

 

 

 

 

	

  JUNE 25, 2002

  	

   

  	

  RONALD G. LEE

  	

   

  
	

  Date

  	

   

  	

  Lee Pharmaceuticals - Ronald G. Lee

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

  JUNE 25, 2002

  	

   

  	

  MICHAEL L. AGRESTI

  	

   

  
	

  Date

  	

   

  	

  Lee Pharmaceuticals - Michael L. AgrestiExhibit

10.5

 

 

PROMISSORY NOTE

 

$60,000

 

	

  Dated: April 23, 2002

  	

   

  	

  At: South El Monte,

  California

  

 

 

                FOR VALUE

RECEIVED, the undersigned LEE PHARMACEUTICALS, INC., a California corporation

with its principal place of business located at 1444 Santa Anita Avenue, South

El Monte, California 91733 (“Maker”) promises to pay to the order of U.S.

DERMATOLOGICS, INC., with its principal place of business located at 133

Franklin Corner Road, Lawrenceville, New Jersey 08648, the principal sum of

Sixty Thousand Dollars ($60,000) (the “Principal Sum”), with interest thereon

at the simple annual rate equal to the highest prime rate published in the Wall

Street Journal during the month preceding the month in which the interest

payment is due and continuing until the entire outstanding amount of the

Principal Sum shall have been paid in full, but in no case more than is

permitted by relevant law, to be paid in lawful money of the United States of

America, at Lender’s address set forth above or such other place as Lender may

from time to time designate in writing. 

All references to Lender in this Note shall be deemed to mean and

include the original holder and any subsequent holder hereof Capitalized terms

used herein and not otherwise defined shall have the meaning ascribed thereto

in the Loan Documents (as defined in Section 2 hereof).

 

                1.             Payment of Principal and

Interest.  The Principal Sum shall

be repaid in twenty equal monthly installments of principal in the amount of

Three Thousand Dollars ($3,000) each, plus interest, commencing on June 15,

2002 and continuing until paid in full. 

Payment of all sums under this Note shall be made by the Maker to the

Lender by Maker’s check or by wire transfer. 

Whenever any payment under this Note or under any agreement, document,

or instrument required hereunder is to be made by the Maker on a day other than

a Business Day, such payment shall be made on the next succeeding Business Day

and such extension of time shall be included in the computation of interest.  “Business Day” means any day other than a

day on which banks located in Los Angeles, California, and New York, New York

are required or are authorized by law or by executive order to close.

 

                2.             Loan Documents.  This Note, together with all other documents

now or at any time hereafter creating, evidencing or securing the indebtedness

evidenced by this Note, including a Guarantee of Ronald G. Lee, a principal

shareholder of Maker (the “Guarantor”), in favor of Lender, both of even date,

are herein referred to collectively as the “Loan Documents.”  The amount due under this Note may be

reduced as provided for in the Loan Documents.

 

                3.             Prepayment Rights.  Maker shall have the right to prepay at any

time and from time to time all or any portion of the entire balance of the

Principal Sum then due of this Note and interest thereon, together with all

other indebtedness evidenced hereby, without penalty, provided that Lender

shall have received at least ten (10) days prior

 

 

 written notice of prepayment

and Maker shall pay all accrued and unpaid interest thereon and all other fees

and costs, if any, due to Lender under this Note.  Any partial prepayment will be applied first against any fees or

charges due under the Loan Documents, if applicable, and then against accrued

and unpaid interest and then against the Principal Sum of this Note.  No partial prepayment will excuse any

further payment of any of the Principal Sum or interest as long as any amounts

remain unpaid.

 

 

 

 

 

 

                4.             Default Provisions.  Regardless of the other terms of this Note,

the occurrence of any of the following events (each, an “Event of Default”), at

the option of Lender, upon written notice to the Maker, may terminate any

obligation on part of Lender to continue this Note and may declare the

Principal Sum outstanding (determined as of the date Lender first exercises its

rights under this Section 4 in connection with such event or events), with all

other sums outstanding under or in respect of this Note and the Loan Documents,

immediately due and payable, without notice of default, presentment or demand

for payment, protest or notice of nonpayment or dishonor, or other notices or

demands of any kind or character, except as herein above and hereinafter

specified.

 

                                (a)           Nonpayment.  Maker shall fail to pay, within ten (10)

Business Days of a due date, any installment of the Principal Sum or interest

under this Note in accordance with the terms hereof;

 

                                (b)           Voluntary Petition.  Maker or the Guarantor shall file any

petition or action for relief under any bankruptcy, reorganization, insolvency

or moratorium law, or any other law or laws for the relief of or relating to

debtors;

 

                                (c)           Involuntary Petition.  The involuntary petition shall be filed

under any bankruptcy statute against Maker or the Guarantor, or a custodian,

receiver, trustee, assignee for the benefit of creditors (or the similar

official) shall be appointed to take possession, custody, or control of the

properties of Maker or the Guarantor, unless such petition or appointment is

set aside or withdrawn or ceases to be in effect within sixty (60) Business

Days from the date of said filing or appointment.

 

                                (d)           Suspension of Business.  Maker shall voluntarily suspend its business

for more than twenty (20) Business Days in any forty-five (45) Business Day

period unless such suspension is the result of acts of God, interruption of

power, strikes, or work stoppage or government action.

                Any declaration

made pursuant to this Section 4 to accelerate payment of all of the Principal

Sum and related interests, is subject to the condition that, if at any time

after the Principal Sum shall become due and payable, and before judgment or

decree for the payment of moneys so sue, or any thereof, shall have been

entered, all arrears of the Principal Sum and interest upon this Note (except

that the Principal Sum which by such declaration shall have become payable)

shall have been paid, and every Event of Default shall have been made good,

waived or cured, then such declaration and its consequences

 

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 shall be rescinded and

annulled; but no such recission or annulment shall extend to or affect any

subsequent Event of Default or impair any consequences thereon.

 

                5.             Payment of Collection Costs.  Maker agrees to pay on demand to Lender (a)

all reasonable costs, expenses, and attorneys’ and paralegal fees incurred by

Lender in connection with the administration of this Note and any Loan Document

(but not the original preparation and negotiation thereof) and (b) all

reasonable costs, expenses and attorneys’ fees incurred by Lender in connection

with the reasonable preservation of Lender’s rights under, and the enforcement

of, this Note and any Loan Document and in connection with any refinancing or

restructuring of the loan in the nature of a “work-out”, whether or not

litigation is involved.  Any amounts

under this Note or any Loan Document not paid when due shall bear interest at a

default interest rate equal to the lesser of (i) fifteen percent (15%) per

annum or (ii) the maximum amount permitted under applicable law.

 

 

 

 

 

 

 

 

                6.             Indemnification.  Maker shall indemnify Lender against and

defend and hold Lender harmless from, any and all claims, obligations,

liabilities, losses, damages, penalties, actions, suits, costs and expenses (including

attorneys’ fees) of whatever kind or nature, whether or not well founded,

meritorious or unmeritorious, demanded, asserted or claimed against Lender in

any way relating to, or arising out of or in connection with, this loan and the

conduct or operation of Maker’s business, other than claims against Lender

based on the willful misconduct or gross and active negligence of Lender.

 

                7.             Non-Waiver of Certain Rights of

Holder.  Any failure by the holder

hereof to insist upon the strict performance of any of the terms and provisions

of this Note or of any of the other Loan Documents shall not be deemed to be a

waiver of any of the terms and provisions hereof or thereof and the holder

hereof, notwithstanding any such failure, shall have the rights thereafter to

insist upon the stricy performance by Maker of any and all of the terms and

provisions of this Note and the other Loan Documents.

 

                8.             Invalidity of Provisions.  In the event that any one or more of the

provisions contained in this Note or any of the other Loan Documents shall for

any reason be held to be invalid, illegal or unenforceable in any respect, such

invalidity, illegality or unenforceability shall not affect any other

provisions of this Note or any of the other Loan documents, and each term and

provision of this Note and the other Loan documents shall be valid and

enforceable to the fullest extent permitted by law.

 

                9.             Amendments Must Be in Writing.  This Note may not be changed orally, but

only by an agreement in writing signed by Maker and Lender.

 

                10.           Governing Law.  This Note is to be construed according to

the laws of the

 

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 State of New York without

regard to conflicts of laws, and shall be binding upon and inure to the benefit

of Maker and Lender and their respective successors and assigns.

 

                11.           Captions.  The captions of this Note are for

convenience only and shall neither limit nor enlarge the provisions hereof.

 

                12.           Integration.  This Note and the Loan Documents integrate

all the terms and conditions mentioned herein or incidental hereto, and

supersede all oral negotiations and prior writings in respect to the subject

matter hereof.  In the event of any

conflict between the terms, conditions, and provisions of this Note and any such

agreement, document or instrument, the terms, conditions and provisions of this

Note shall prevail (except for any provision of the Loan Documents providing

for the reduction of the Principal Sum due under this Note).

 

                Executed as of the

day and year first above written.

 

 

 

 

	

   

  	

   

  	

   

  	

   

  	

   

  	

  LEE PHARMACEUTICALS, INC.

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

  By:

  	

  RONALD G. LEE

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

  Ronald G. Lee

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

  Title: 

  President and CEO

  
									

 

 

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