EXHIBIT 10.1
November 26, 2002
By overnight mail
Xx. Xxxxxx Xxxxxxxxxx
Xxxxxxxxxx Laboratories, Inc.
0000 Xxxxxx Xxxx Xxxx
Xxxxxx, Xxxxx 00000
Re: Advance of royalty fees
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Dear Xxx:
This confirms the agreement between Medline and Xxxxxxxxxx to
advance $2,000,000 of Base Royalty Payments under the Distributor
and License Agreement (the "Agreement"). Medline will advance
the $2,000,000 in December 2002, and the advance will be treated
as a loan, with interest at 6.5% and payments of principal and
interest in 11 equal quarterly installments in the form of
deductions from the quarterly royalty payments due under the
Agreement, commencing with the March 1, 2003 royalty payment.
The attached schedule reflects the advance and payment plan
agreed to above.
In the event the Agreement terminates, for any reason, prior to
full repayment of the advance, then the entire unpaid balance of
the advance will become immediately due and payable upon the
effective date of termination, with interest thereafter at 9.5%.
This agreement is binding on and inures to the benefit of each
party's successors and assigns.
Please execute both originals enclosed herein, and overnight them
to Xxxx Xxxxxxxx'x attention. Medline will then execute both
originals and return one of them to you.
Agreed to this 27th day of November, 2002:
MEDLINE INDUSTRIES, INC. XXXXXXXXXX LABORATORIES, INC.
By: /s/ Xxxx Xxxxx By: /s/ Xxxxxx Xxxxxxxxxx
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Xxxx Xxxxx Xxxxxx Xxxxxxxxxx
