A generalization of the Lee model was previously given with the restriction that the free and complete Hamiltonians possess the same stable one particle states. The model is applied to the calculation of unstable particle production and decay without separating the two processes. The model predicts bound state production for suitable cut-off functions. The Nishijima-Zimmermann formalism for handling bound states in conjunction with dispersion relations is shown to produce direct calculations. (For part I see NSA, Vol. 14, abstract number 7070). (C.J.G.)