<PAGE>
Exhibit 10.1
MODIFICATION OF LOAN AND SECURITY AGREEMENT
WHEREAS this agreement is in reference to a loan which is evidenced by an
instrument entitled LOAN AND SECURITY AGREEMENT ("AGREEMENT"), dated October
29, 1999, executed by and between LEE PHARMACEUTICALS as "BORROWER" and
FINOVA CAPITAL CORPORATION ("FINOVA"), as "LENDER".
NOW THEREFORE, it is agreed by the undersigned parties that the AGREEMENT
shall be amended in the following respect:
In Section 2.8 of the Agreement, the term of this Agreement shall be
extended to May 21, 2002.
Except as noted above, all the terms, conditions and provisions of said
AGREEMENT shall remain unchanged and in full force and effect.
Date: May 19, 2000
FINOVA CAPITAL CORPORATION AGREED AND ACCEPTED:
LEE PHARMACEUTICALS
BY: FARHAD MOTIA BY: RONALD G. LEE
----------------------- ------------------------
Farhad Motia, President Ronald G. Lee, President
