Promissory Note - Sepracor Inc. and Paul Rubin
[SEPRACOR]
PROMISSORY NOTE
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$65,000 May 23, 1997
FOR VALUE RECEIVED, the undersigned Dr. Paul Rubin with an address of 7205
Fontana Place, Raleigh, NC 27615 (hereinafter referred to as the "Borrower"),
promises to pay to the order of Sepracor Inc. (together with any subsequent
holders of this Note, the "Lender"), at its office at 111 Locke Drive,
Marlborough, Massachusetts 01752, or at such other place as the Lender may from
time to time designate in writing, the principal sum of:
Sixty Five Thousand DOLLARS
This note is non interest bearing, Borrower is responsible for all inputted
interest as calculated by IRS regulation.
If not sooner paid, all outstanding principal shall be paid to the Lender
on the earlier of (a) date of termination from employment (b) payment of 1996
bonus in Q197 (Note will be netted against payment).
This Note may be prepaid, in whole or from time to time in part, at
anytime, without premium or penalty.
All payments hereunder shall be payable in lawful money of the United
States which shall be legal tender for public and private debts at the time of
payment.
It is expressly agreed that failure to pay upon termination of employment
shall constitute an "Event of Default." If any such Event of Default hereunder
shall occur, the Lender may, at its option, declare to be immediately due and
payable the then outstanding principal balance under this Note, and all other
amounts payable to the Lender hereunder, shall become and be due and payable
immediately. The failure of the Lender to exercise said option to accelerate
shall not constitute a waiver of the right to exercise the same at any other
time.
The Borrower will pay on demand all costs and expenses, including
reasonable attorneys' fees, incurred or paid by the Lender in enforcing or
collecting any of the obligations of the Borrower hereunder. The Borrower agrees
that all such costs and expenses and all other expenditures by the Lender on
account hereof, other than advances of principal, which are not reimbursed by
the Borrower immediately upon
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demand, all amounts due under this Note after maturity, and any amounts due
hereunder if an Event of Default shall occur hereunder, shall bear interest at a
fluctuating per annum rate equal to the sum of the Prime Rate from time to time
in effect plus five percent, but in no event more than the maximum rate of
interest then permitted by law (the "Default Rate"), until such expenditures are
repaid or this Note and such amounts as are due are paid to the Lender.
This Note is secured by Borrowers stock options in Sepracor Inc., (as from
time to time amended and in effect, the "Security"). No sale transfer or
assignment of said stock options can be made without the express written consent
of the President and CEO of Sepracor.
All notices required or permitted to be given hereunder shall be in writing
and shall be effective when mailed, postage prepaid, by registered or certified
mail, addressed in the case of the Borrower and the Lender to them at the
address set forth above, or to such other address as either the Borrower or the
Lender may from time to time specify by like notice.
All of the provisions of this Note shall be binding upon and inure to the
benefit of the Borrower and the Lender and their respective successors and
assigns. If there is more than one undersigned Borrower, the obligations of each
Borrower shall be joint and several. This Note shall be governed by and
construed in accordance with the laws of The Commonwealth of Massachusetts.
The Borrower hereby consents to any extension of time of payment hereof,
release of all or any part of the security for the payment hereof, or release of
any party liable for this obligation, and waives presentment for payment,
demand, protest and notice of dishonor. Any such extension or release may be
made without notice to the Borrower and without discharging its liability.
IN WITNESS WHEREOF, the Borrower has executed and delivered this Note, on the
day and year first above written.
/s/ Timothy J. Barberich /s/ Dr. Paul Rubin
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Timothy J. Barberich Dr. Paul Rubin
President and CEO Senior Vice President Drug Development