TERM NOTE


$3,500,000                                                    Chicago, Illinois
                                                              June 24, 1997

         FOR VALUE RECEIVED,  the undersigned,  K-V  PHARMACEUTICAL  COMPANY,  a
Delaware corporation (herein,  together with its successors and assigns,  called
the  "Borrower"),  promises  to pay to the order of  LASALLE  NATIONAL  BANK,  a
national banking association (herein,  together with its successors and assigns,
called the "Bank"),  the principal  sum of THREE  MILLION FIVE HUNDRED  THOUSAND
DOLLARS  ($3,500,000),  plus  interest  at the rate of Eight and 53/100  Percent
(8.53%) per annum, payable in monthly  installments  commencing June 18, 1997 of
principal  of NINETEEN  THOUSAND  FOUR  HUNDRED  FORTY-FOUR  AND 44/100  DOLLARS
($19,444.44), plus interest as described below, on the last Business Day of each
month through May, 2002,  with a final payment of the entire  principal  balance
outstanding,  plus accrued and unpaid interest,  hereunder due on June 18, 2002.
This Note is made  pursuant to that certain Loan  Agreement  dated June 18, 1997
between the Borrower,  Particle  Dynamics,  Inc., a New York corporation,  ETHEX
Corporation,  a  Missouri  corporation,  and  Bank  (herein,  as the same may be
amended,   modified  or  supplemented  from  time  to  time,  called  the  "Loan
Agreement").

         The Borrower  further  promises to pay to the order of Bank interest on
the aggregate  unpaid principal amount hereof from time to time outstanding from
the date hereof until paid in full at the Fixed Rate described above and at such
times as shall be  determined  in  accordance  with the  provisions  of the Loan
Agreement.  Accrued interest shall be payable on the dates specified in the Loan
Agreement.

         Payments of both  principal  and  interest are to be made in the lawful
money of the United States of America in immediately  available  funds at Bank's
principal  office at 135 South LaSalle  Street,  Chicago,  Illinois 60603, or at
such other place as may be designated by Bank to the Borrower in writing.

         This  Note is the Term  Note  referred  to in,  evidences  indebtedness
incurred  under,  and is  subject  to the  terms  and  provisions  of,  the Loan
Agreement.  The Loan  Agreement,  to which  reference is hereby made, sets forth
said terms and provisions,  including those under which this Note may or must be
paid prior to its due date or may have its due date accelerated.  Terms used but
not otherwise defined herein are used herein as defined in the Loan Agreement.

         This Note is further  secured by those certain  Missouri Future Advance
Deed of Trust and Security  Agreements and those certain Assignment of Rents and
Leases,  each of even date  herewith made by Borrower to Bank,  encumbering  the

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property  commonly  known as 10876 Metro Court and 10862  Metro  Court,  each as
legally described therein.

         In  addition  to,  and not in  limitation  of,  the  foregoing  and the
provisions of the Loan Agreement  hereinabove  referred to, the Borrower further
agrees,  subject only to any  limitation  imposed by applicable  law, to pay all
expenses, including attorneys' fees and expenses, incurred by the holder of this
Note in seeking to collect any amounts payable hereunder which are not paid when
due, whether by acceleration or otherwise.

         All  parties  hereto,  whether  as  makers,   endorsers  or  otherwise,
severally  waive  presentment,   demand,  protest  and  notice  of  dishonor  in
connection with this Note.

         This  Note is  binding  upon the  undersigned  and its  successors  and
assigns,  and shall inure to the benefit of Bank and its successors and assigns.
This  Note is made  under  and  governed  by the laws of the  State of  Illinois
without regard to conflict of laws principles.

                                               K-V PHARMACEUTICAL COMPANY, a
                                               Delaware corporation
ATTEST:


By: /s/ John P. Walsh                          By: /s/ Gerald R. Mitchell
    Assistant Secretary                        Title: Vice-President, Finance


Borrower's Address:

2503 South Hanley
St. Louis, Missouri  63144-2555


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