November 26, 2002 By overnight mail Mr. Robert Schnitzius Carrington Laboratories, Inc. 2001 Walnut Hill Lane Irving, Texas 75038 Re: Advance of royalty fees ----------------------- Dear Bob: This confirms the agreement between Medline and Carrington...Advance of Royalty Fees Agreement • December 23rd, 2002 • Carrington Laboratories Inc /Tx/ • Pharmaceutical preparations
This confirms the agreement between Medline and Carrington 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.
