TEMPORARY LOAN AGREEMENT
Xxxxx Xxxxxxx
It is agreed that Pharmaceutical Laboratories, Inc., hereinafter referred
to as (PLI) and Xxxxx Xxxxxxx, hereinafter referred to as (Xxxxxxx) wish to
enter into an agreement whereby Xxxxxxx will loan to PLI monies, from time to
time. The loans will be in amounts to be determinedat the time the loans are to
be made and repayment will be made upon receipt of monies brought into PLI
through their accounts receivables.
It is understood that this agreement shall be in effect for a period of
one year and shall not exceed a total of $1,200,000.
Interest shall be at the rate of nine percent (9%) and will be paid
monthly. Interest shall be paid on a pro-rata basis on the total amount
borrowed during each month.
Collateral shall be a first lien on all PLI assets located at the
Harlingen, Texas facilities, and a second lien on all other PLI assets.
Special Instructions: The total amount of monies advanced against the
$1,200,000 line of credit will become due and payable immediately in the
event a receiver is appointed for the Company, or there is a change in
current management as a result of the lawsuit(s) filed by Xxxxx Xxxxxx.
Interest on the debt evidenced by this note shall not exceed the maximum
amount of nonusurious interest that may be contracted for, taken, reserved,
charged, or received under law; any interest in excess of that maximum
amount shall be credited on the principal of the debt or, if that has been
paid, refunded. On any acceleration or required or permitted prepayment, any
such excess shall be canceled automatically as of the acceleration or
prepayment or, if already paid, credited on the principal of the debt or, if
the principal of the debt has been paid, refunded. This provision overrides
other provisions in this and all other instruments concerning the debt.
Each maker is responsible for all obligations represented by this note.
SIGNED THIS 11TH DAY OF JULY, 1997.
MAKER: PHARMACEUTICAL LABORATORIES, INC.
By: /s/ XXXXX XXXXXXX
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Title: President
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PAYEE: XXXXX XXXXXXX
/s/ XXXXX XXXXXXX
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