Document:

Prepared by MerrillDirect

	 	SECURED PROMISSORY NOTE	EXHIBIT 10.59
	 	 	 
	$188,000

	 	February 28,
  2001

  San Francisco, California
	 	 

             FOR
VALUE RECEIVED, Shaman Pharmaceuticals, Inc., a Delaware corporation, (“Payor”)
hereby unconditionally promises to pay to Anthony Conte, a individual, or order
(“Holder”) in lawful money of the United States, at San Francisco, California,
the sum of one hundred and eighty-eight thousand dollars ($188,000), with
interest from the date hereof on the unpaid principal balance at the annual
rate of ten percent  (10%) per
annum.  The principal balance together
with all accrued interest thereon, is due and payable on or before April 1,
2001 or the earlier sale of the
collateral described in the Security Agreement described below.  There shall be no penalty for prepayment of
all or part of the principal balance.

             This
Note is the Note referred to in and is executed and delivered in connection
with that certain Security Agreement dated as of even date herewith and
executed and delivered by Payor in favor of Holder (as the same may from time
to time be amended, modified, or supplemented or restated, the “Security
Agreement”).  Additional rights of Payor
are set forth in the Security Agreement. 
The full amount of this Note is secured by the collateral identified and
described as security therefor in the Security Agreement.  Payor shall not, directly or indirectly,
create, permit, or suffer to exist, and shall defend the collateral against and
take such other action as is necessary to remove, any lien on or in the collateral,
or in any portion thereof, except as permitted pursuant to the Security
Agreement.

             Each
of the following events shall be an “Event
of Default” hereunder:

                           (a)         Payor fails to timely pay any
of the
amounts due under this Note on the date the same becomes due and payable; or

                           (b)        Payor defaults on an obligation
contained in this Note or Payor defaults under the Security Agreement;

                           Upon
the occurrence of an Event of Default hereunder, all unpaid principal, accrued
interest and other amounts owing hereunder shall, at the option of Holder be
immediately due, payable and collectible by Company pursuant to applicable
law.  Holder shall have all rights and
may exercise any remedies available to it under law, successively or
concurrently.

             Payor
waives presentment and demand for payment, notice of dishonor, protest and
notice of protest of this Note, and shall pay all costs of collection when
incurred, including, without limitation, reasonable attorneys’ fees, costs and
other expenses.

             The
right to plead any and all statutes of limitations as a defense to any demands
hereunder is hereby waived to the full extent permitted by law.

             This
Note shall be governed by, and construed and enforced in accordance with, the
laws of the State of California, excluding conflict of laws principles that
would cause the application of laws of any other jurisdiction.  Time is of the essence.

             The
provisions of this Note shall inure to the benefit of and be binding on any
successor to Payor and shall extend to any holder hereof.  Payor shall not, without the prior written
consent of holder, assign any of its rights or obligations hereunder.

             If
this Note is destroyed, lost or stolen, Payor will deliver a new note to Holder
on the same terms and conditions as this Note with a notation of the unpaid
principal balance and accrued and unpaid interest in substitution of the prior
Note.  Holder shall furnish Payor with
reasonable evidence that the Note was destroyed, lost or stolen, and any
security and indemnity that may be reasonably required by Payor in connection
with the replacement of this Note

	PAYOR:	Shaman Pharmaceuticals, Inc.
	 	 
	 	 
	 	 
	 	By:	/s/ Steven R. King

	 	 	Steven R. King
	 	 	Chief Operating Officer

 

 

SUBORDINATION AGREEMENT

 

             1.  Subordination.  For valuable consideration, the undersigned secured creditors
subordinate the security interest represented by the Security Agreement dated
January 2, 2001 (“Security Agreement”), between the undersigned and Shaman
Pharmaceuticals, Inc., a Delaware corporation (“Shaman”), to the security
interest of the Lender specified in attached Exhibit A.  (“Lender”) in connection with Lender’s
secured loan of $188,000 to Shaman.

             2.  Trust. 
Anything received or retained by the undersigned pursuant to the
Security Agreement shall be held in trust for the Lender.

             3.  Counterparts.  This Subordination Agreement (“Agreement”) may be executed in
counterparts, each of which so executed shall be deemed an original, and said
counterparts shall constitute one and the same instrument.

             4.  Miscellaneous provisions.  This Agreement shall governed by and
construe under the laws of the State of California without giving effect to
conflicts of laws principles.  This
Agreement shall bind and inure to the benefit of the respective successors and
permitted assigns of the parties.

Dated as of March 2, 2001

 

	ALCAMIN ANSTALT	 	TRADEWIND DEBT STRATEGIES FUND, LP
	 	 	 
	By:  
  /s/ Gerardo Giugni

	 	 
	Name:  
  Gerardo Giugn

	 	By:  
  /s/ Robert W. Scannell

	Title:

	 	Name:  
  Robert W. Scannel

	 	 	Title:  
  General Partner

	 	 	 
	 	 	 
	Nezam Tooloee	 	LISA A. CONTE
	 	 	 
	By:  
  /s/ Nezam Tooloee

	 	By: /s/ 
  Lisa A. Conte

	 	 	 
	 	 	 
	 	 	 
	SHAMAN PHARMACEUTICALS, INC.	 	 
	 	 	 
	By:  
  /s/ Lisa A. Conte

	 	 
	Its:  
  President and CEOPrepared by MerrillDirect

	SECURITY
  AGREEMENT	EXHIBIT 10.60

             THIS SECURITY AGREEMENT is entered
into as of February 28, 2001, between SHAMAN PHARMACEUTICALS, INC., a Delaware
corporation (“Debtor”), for the benefit of 
Anthony Conte (“Secured Party”).

RECITALS

             A.         Pursuant to the Promissory Note of even
date entered into between Secured Party and Debtor (the “Promissory Note”), Debtor has agreed to
pledge its assets as security for the payment of the Promissory Note.

             B.          Debtor is granting to Secured Party a
fully perfected security interest in all of Debotr’s personal property, now or
hereafter acquired, including, without limitation, its present and future
accounts, accounts receivable, assets, general intangibles, equipment,
inventory, deposit accounts, and its intellectual property and tangible assets
relating to SP-303, SB-300, NSF and NSF-IB, and to Debtor’s patents, products,
inventory, latex/raw material, work in process, and customer lists that embody
(without limitation) that intellectual property, specifically including, without
limitation, its intellectual property, technology, royalty rights, and tangible
assets related to its diabetes program as described in the letter agreement
between Debtor and Metabolex, Inc. attached hereto as Exhibit A and all
proceeds thereof (collectively the “Collateral”), to secure prompt payment and
performance of the Obligations and Debtor’s obligations to Secured Party under
this Agreement.  This security interest
will be prior to any competing security interest, lien or other interest or
claim in such Collateral.

NOW,
THEREFORE, in consideration of the foregoing and for other good and valuable
consideration, the receipt and adequacy of which are hereby acknowledged,
Debtor agrees as follows:

             1.          Grant of Security Interest.  Debtor hereby assigns and grants to Secured
Party, to secure the due and timely payment and performance of the Obligations
(as defined below), whether now existing or hereafter arising, a first priority
perfected security interest in all of Debtor’s right, title and interest,
whether now existing or hereafter arising, in and to the Collateral (as defined
below) other than Debtor’s irrevocable licenses.

             2.          Collateral.  The “Collateral”
consists of the following personal property.

                           (a)          All intellectual property
rights of
Debtor relating to SP-303, SB-300, NSF and NSF-IB, including, without
limitation, protocols and methodology, Debtor’s license agreement with Dr.
Tempesta, and U.S. patent # 5,211,944, U.S. patent # 5,494,661, US patent
application serial # 09/066,989, US patent application serial # 09/243,197, US
patent application serial # 09/364,248, Shaman docket # SHOBOT-08, and numerous
related international and national patent office actions/prosecutions ongoing
in Europe, North America and Asia (collectively, the “SP-303 Intellectual Property”).

                           (b)        Any and all goods, supplies, wares,
merchandise, and other tangible personal property, including customer lists,
latex/raw material, work in process, supplies and components, and finished
goods that embody the SP-303 Intellectual Property, whether held for sale or
lease or to be furnished under any contract for service or so leased or
furnished, and also including products of and accessions to inventory, packing
and shipping materials, and all documents of title, whether negotiable or
nonnegotiable, representing any of the foregoing (collectively, the “SP-303 Inventory”).

                           (c)         All rights of Debtor under its

agreements for distribution of the SP-303 Inventory, including without
limitation, Debtor’s rights under an Agreement with GNC.

                           (d)        All intellectual property rights of
Debtor relating to it Diabetes program, including, without limitation, patents,
technology, ethnobotanical information, databases, and royalty rights, as set
forth in Exhibit B (collectively, the “Diabetes
Intellectual Property”), including, without limitation, the
information to be transferred to Metabolex a provided in Exhibit A.

                           (e)         Any and all goods, supplies,
wares, and
other tangible personal property that embody the Diabetes Intellectual
Property, including supplies of raw plant material, extracts, and isolated
compounds, and all documents of title, whether negotiable or nonnegotiable,
representing any of the foregoing (collectively, the “Diabetes Inventory”), including, without
limitation, property to be transferred to Metabolex as provided in Exhibit A.

                           (f)         All accounts, contract rights,

instruments, documents, chattel paper, and obligations in any form owing to
Debtor arising out of the sale or lease of goods or the rendition of services
by Debtor whether or not earned by performance; all credit insurance,
guaranties, letters of credits, advices of credit, and other security for any
of the above; all merchandise returned to or reclaimed by Debtor (collectively,
the “Accounts”).

                           (g)        Any and all goods, supplies, wares,
merchandise, and other tangible personal property, including work in process,
supplies and components, and finished goods, whether held for sale or lease or
to be furnished under any contract for service or so leased or furnished, and
also including products of and accessions to inventory, packing and shipping
materials, and all documents of title, whether negotiable or nonnegotiable,
representing any of the foregoing (collectively, the “Inventory”).

                           (h)        All equipment, fixtures, machinery,
machine tools, office equipment, furniture, computer equipment, furnishings,
motor vehicles, goods, all attachments, accessories, accessions, parts,
replacements, substitutions, additions and improvements thereto, and all
supplies used or to be used in connection therewith, including, without
limitation, each of the items of equipment set forth on any schedule of
equipment that is either now or in the furture delivered by Debtor to Secured
Party and incorporated herein by reference (collectively, the “Equipment”).

                           (i)          All general
intangibles, choses in
action, causes of action, and all other personal property of every kind and
nature (other than goods and Accounts), including, without limitation, patents,
trademarks, trade names, service marks, copyright licenses, label rights and
applications for any of the above; and goodwill, trade secrets, licenses,
franchises, rights under agreements, deposit accounts, tax refunds, tax refund
claims, and money due from pension funds (collectively the “General
Intangibles”).

                           (j)           All notes, drafts,
instruments,
documents, securities, money, letters of credit, advices of credit or other
property owned by Debtor or in which Debtor has an interest that now or
hereafter are at any time in the possession or control of Secured Party or in
transit by mail or carrier to or in the possession of any third party acting on
behalf of Secured Party, without regard to whether Secured Party received the
same in pledge, for safekeeping, as agent for collection or transmission or
otherwise, or whether Secured Party had conditionally released the same and all
deposit accounts of Debtor, including all demand, time, savings, passbooks, or
other accounts.

                           (k)         All replacements,
modifications and
accessions to any of the foregoing, wherever located.

                           (l)          All proceeds (including
insurance
proceeds) of the foregoing.

                           (m)        All books, correspondence, records an
d
other documents relating to the above-described property.

             As used in this Security Agreement,
the term “proceeds”
includes whatever is receivable or received when collateral or the proceeds
thereof is paid, collected or otherwise disposed of whether such disposition is
voluntary or involuntary, and all claims arising out of the damage,
destruction, or decrease in value of the collateral.

             3.          Obligations Secured.  The “Obligations”
secured by the Collateral consist of the full and timely payment and
performance of all of debt evidenced by the Promissory Note and the obligations
under this Security Agreement.  The
terms “indebtedness” and “obligations” are used in the most comprehensive sense
and include all obligations in connection with the Promissory Note to Secured
Party.

             4.          Covenants of Debtor.  Debtor agrees:

                           (a)         to do all acts necessary to
maintain,
preserve and protect the Collateral.

                           (b)        not to change the location of the
tangible Collateral, except for inventory in the ordinary course of business,
or to make any change in Debtor’s name or place of business, or, if Debtor has
more than one place of business, its head office, or office in which Debtor’s
records relating to the Collateral are kept beyond Debtor’s ordinary course of
business conduct.

                           (c)         to procure and deliver from
time to
time any financing statements and other writings necessary to perfect, maintain
and protect its security interest hereunder and the priority thereof and
the purposes of this Agreement and to deliver promptly to Secured Party all
originals of Collateral or proceeds consisting of chattel paper or instruments,
if any.

                           (d)        to keep separate, accurate and
complete
records of the Collateral and to provide Secured Party with such records and
other reports and information relating to the Collateral as Secured Party may
request from time to time.

                           (e)         not to surrender or lose
possession of
(other than to Secured Party), sell (except for inventory in the ordinary
course of business and pursuant to the agreement with Metabolex set forth on
Exhibit A), encumber, lease, rent, or otherwise dispose of or transfer any
Collateral or right or interest therein, except for routine disposal of
equipment being replaced in the ordinary course of business, and to keep the
Collateral free from all levies and security interests or other charges except
for security interests existing on the date of this Agreement with pre-existing
lenders and those other levies, security interests or other charges approved in
writing by Secured Party.

                           (f)         To pay promptly when due all
federal,
state, and local taxes or assessments now or hereafter imposed on or affecting
any Collateral and to deliver to Secured Party, on demand, appropriate
certificates attesting to the payments.

                           (g)        Not to cause or suffer any of
Debtor’s
representations and/or warranties to become untrue.

                           (h)        To appear in and defend any action or

proceeding which may affect its title to or Secured Party’s interest in the
Collateral.

                           (i)          To promptly supply
Secured Party with
such other information concerning its affairs as Secured Party may request from
time to time hereafter and shall promptly notify Secured Party of any material
adverse change in Debtor’s financial condition and any condition or event that
constitutes a breach of or event that constitutes an Event of Default under
this Agreement.

             5.          Representations and Warranties.  Debtor represents and warrants to
Secured Party that:

                           (a)         The exact corporate name of
Debtor is
Shaman Pharmaceuticals, Inc., a Delaware corporation.

                           (b)        Debtor’s principal place of
business and
chief executive office is located at 213 East Grand Avenue, South San
Francisco, California 94080-4812. 
Debtor maintains all of its records with respect to the Collateral at
that address.  Debtor has not at any
time within the past four (4) months maintained its chief executive office or
its records with respect to the Collateral at any other location.  All tangible Collateral is and will be
located in the State of California except for inventory shipped in the ordinary
course of business.

             6.          Default.  Debtor will be in default hereunder if:

                           (a)         Debtor materially breaches
any provision
of this Security Agreement and such breach continues after written notice from
Secured Party for a period of thirty (30) days or such longer period of time
reasonably required to remedy the breach, provided Debtor promptly commences
remedial action within thirty (30) days of such written notice and thereafter
diligently pursues the remedial action.

                           (b)        If any warranty or representation
in any
Document or in any writing delivered to Secured Party is untrue or inaccurate
in any material respect.

                           (c)         Any material m
isrepresentation or
material misstatement existing now or hereafter in any warranty or
representation in any such guaranty in connection with such guaranty.

                           (d)        Debtor fails to pay any amounts
when due
under the Promissory Note or breaches any other provision of the Promissory
Note.

             7.          Remedies.  Upon a default as defined in Section 6
above, Secured Party may, at Secured Party’s option declare all Obligations
immediately due and payable:

                           (a)         Exercise with respect to the
Collateral
all of the remedies of a secured party under Article 9 of the California
Commercial Code (including any right to recover any deficiency from Debtor).

                           (b)        Exercise any and all remedies
available
under law or in equity.

                           (c)         Payment in full of
Indebtedness at any
time shall cure any and all defaults, pursuant to which Secured Party shall
relinquish, release and return to Debtor any and all collateral in its
possession or under its control.

             No delay or omission to exercise
any right or remedy of Secured Party upon a default by Debtor will waive any
right or remedy of Secured Party or be construed as a waiver of any similar
default that occurs later.  Debtor
waives any right to require Secured Party to proceed against any other person
or to exhaust any Collateral or to pursue any other remedy in Secured Party’s
power.

             8.          Miscellaneous.

                           (a)         The terms of this Security
Agreement
will inure to the benefit of and bind the parties hereto and their respective
successors, assigns, executors, heirs and legal representatives.

                           (b)        This Security Agreement contains the

entire security agreement between Secured Party and Debtor and may be modified
only by a writing signed by Secured Party and Debtor.  If any of the provisions of this Security Agreement are held
invalid or unenforceable, this Security Agreement will be construed as if not
containing the invalid or unenforceable provisions.

                           (c)         This Security Agreement will be

construed in accordance with and governed by the laws of the State of
California.

                           (d)        Should any party hereto institute any

action or proceeding to enforce any provisions hereof, or for damages by reason
of any alleged breach of any provisions of this Agreement, or for a declaration
of such party’s rights or obligations hereunder, or for any other judicial
remedy, the prevailing party shall be entitled to be reimbursed by the losing
party all costs and expenses incurred thereby, including but not limited to,
reasonable attorney fees.

                           (e)         All communications required
or given
under this Security Agreement shall be given in writing to Secured Party or
Debtor at the address for such party set forth below, and shall be deemed given
upon the earlier of actual receipt by the party or three (3) days after posting
in the U.S. mail, postage prepaid, and duly addressed:

	 	Secured
  Party:	Anthony
  Conte
	 	 	9
  Gulls Cove
	 	 	Manhasset,
  NY 11030
	 	 	 
	 	Debtor:	Shaman
  Pharmaceuticals, Inc.
	 	 	213
  East Grand Avenue
	 	 	South
  San Francisco, CA 94080-4812
	 	 	 
	 	With
  a copy to:	Sharie
  L. Mendrey, Esq.
	 	 	Farella
  Braun + Martel, LLP
	 	 	Russ
  Building, 30th Floor
	 	 	235
  Montgomery Street
	 	 	San
  Francisco, CA 94104

             Either party may change the address
to which notices shall be sent to such party by providing written notice
thereof to the other party in accordance with the terms of this Section.

                           (f)         Time is of the essence in
each and
every provision of this Agreement.

                           (g)        Provided Debtor has performed and
repaid
the Obligations in full, within 10 days of such payment, Secured Party shall
deliver to Debtor executed UCC termination statements in customary form.

 

             IN WITNESS WHEREOF, the Debtor has
executed this Security Agreement as of the date and year first above written.

	 	DEBTOR:	Shaman Pharmaceuticals, Inc.
	 	 	 
	 	 	 
	 	 	By: 
  /s/ Steven R. King

	 	 	 
	 	 	Steven R. King, its COO

 

EXHIBIT
A

Letter
Agreement Between Debtor and Metabolex, Inc.

 

 

EXHIBIT
B

Diabetes
Intellectual Property

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