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TCA Translation

                                    /emblem/
                           Union Bank of Switzerland

Corporate Customers Department
/address information/                                  Bigmar Pharmaceuticals SA

Our ref: FK11/R.Burkhard/PDU                           Date: December 13, 1996
         9247-507.944

CREDIT CONTRACT AND LIBOR MORTGAGE LOAN CONTRACT of 11/26/96

Dear Sirs,

We refer to our previous  agreements  and hereby confirm to you our agreement to
waive the postponement of the loan of SFr. 2,000,000 granted you by Bigmar Inc.,
Delaware,  because the latter has confirmed the promissory  note  abandonment in
the amount of US $1,500,000 claimed against you.

The  relative  postponement  clause  in our  above  mentioned  contracts  should
therefore be considered cancelled.

All other contractual clauses remain unchanged.

To  complete  our  files and to  verify  the  validity  of the  promissory  note
abandonment, we still need the following Bigmar Inc., Delaware documents:

-- Certificate of Good Standing
-- By-laws.

This  letter  is to be  considered  an  integral  part  of the  above  mentioned
contracts.

Sincerely,

Union Bank of Switzerland

/signature/         /signature/
G. Ambrosetti       pp. R. Burkhard


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TCA Translation

/Each  page of the  original  bears 2 stamps and 3  signatures,  and is dated in
Barbengo on February 26, 1997/

                                    /emblem/
                           Union Bank of Switzerland

Corporate Customers Department                         To the Management of
/address information/                                  Bigmar Pharmaceuticals SA

Our ref: FK11/R.Burkhard/PDU                           Date: November 26, 1996
         9247-507.944

Dear Sirs,

We refer to the previous agreements with our Mr. R. Burkhard and, with regard to
your investment for the creation of a  pharmaceuticals  production  plant on lot
No. 174 of Barbango,  we confirm the  consolidation of the credits you have with
our institution as follows:

a)   grant of a new LIBOR MORTGAGE LOAN for the amount of

         SFr. 2,000,000.00 (two million Swiss francs)

/illegible handwritten marginal note/

     For this  purpose we enclose  the  relative  contract,  which is to be duly
     signed and returned to us.

b)   grant of a new INVESTMENT CREDIT in the amount of

         SFr.  3,475,000.00 (three million,  four hundred seventy-five  thousand
         Swiss francs)

     available in the form of:

     -- FIXED TERM ADVANCE IN SWISS FRANCS
     -- FIXED  RATE  CREDITS  IN   SWISS  FRANCS  up  to  the  maximum  of  SFr.
        3,000,000.00.

     These facilities are guaranteed to us by:

     -- assignment to us, as per separate  agreement,  of the  following  bearer
        mortgage bonds:
        SFr. 400,000 of 11/15/88, dg. 30458, in 4th and equal rank
        SFr. 200,000 of 2/27/89, dg. 5196, in 4th and equal rank
        SFr. 250,000 of 6/13/89, dg. 15034, in 4th and equal rank
        SFr. 150,000 of 6/13/89, dg. 15036, in 4th and equal rank
        SFr. 275,000 of 12/13/93, dg. 33711, in 5th rank
        encumbering parcel 174 of the Barbango RFD.

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TCA Translation

        -- SFr. 1,700,000     joint  and  several  surety  of  Chemholding  SA,
                              Barbango,  pursuant to separate surety  instrument
                              of 1/5/95.

Until  further  notice,  your  debt to us shall  be  governed  by the  following
conditions:

     FIXED ITEM ADVANCES IN SWISS FRANCS

     Interest: The interest rate shall be net and will be agreed upon orally two
               banking  days  before  the  payment  of each  extension  and then
               confirmed in writing by this bank.  The Swiss method will be used
               to calculate interest (30-day month, 360-day year).

               Interest  shall  be due  quarterly,  and on the  due  date of the
               individual  advances  and will be  debited,  assuming  funds  are
               available, to current account No. 0247/507.994.01 N.

     Duration: 3, 6, 9 or 12 months, renewable

     Amounts:  SFr. 250,000 minimum.

     CREDITS AT FIXED RATE IN SFR

     Utilization  SFr. 750,000.00 fixed at 2 years from the date of payment;
     /duration:
                  SFr. 750,000.00 fixed at 3 years from the date of payment;
                  SFr. 750,000.00 fixed at 4 years from the date of payment;
                  SFr. 750,000.00 fixed at 5 years from the date of payment;

     Interest: The interest rate shall be net and will be agreed upon orally two
               banking days before  payment and then confirmed in writing by UBS
               [this bank].

               Interest will be calculated according to the international method
               (exact number of days out of 360) and will be due semi-annually.

     Advances  For the entire  duration of the credit at fixed rate,  the client
     reim-     shall have the  possibility of reimbursing the entire debt in one
     bursement installment.  This  procedure  may be used  under  advice  of two
     by the    banking  days and against  payment of an  indemnity  to UBS.  The
     client:   indemnity shall be calculated by this bank as follows:

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TCA Translation


Amount x days remaining x fixed int. rate -- reinvestment int. rate 36,000

               The  reinvestment  interest rate shall be the rate offered on the
               UBS  Euromarket  valid for the remaining  duration  (information:
               Telerata  page 3523 or  Investdata  p. 589.40).  If the latter is
               above the contractually agreed upon fixed interest rate UBS shall
               not make any reimbursements.

     Utiliza-  The credit may be utilized after the  establishment of the agreed
     tion of   upon guarantees and when the latter and the necessary  documents,
     the       are held by this bank.
     credit:

     Duty to   The client shall inform UBS  periodically,  at least once a year,
     report:   within  4 months  from  the  close  of the  fiscal  year,  on the
               progress of its business.  For this purpose, it shall present all
               the necessary documents, such as the balance sheet and profit and
               loss account,  etc., with the auditor's  report,  and provide any
               supplementary  information  UBS may  consider  necessary  and may
               reasonably demand.

               The  client  shall  advise  UBS  immediately  in  writing  of any
               circumstance  which may make it impossible to honor its contracts
               and  commitments,  and of any event which may cause a significant
               deterioration of its financial situation.

     Changes   If the client, or another company with which it had a substantial
     of finan- relationship  of dependency on capital and/or voting rights,  for
     cial and  any reason must amend its legal or  financial  organization  (for
     legal     example,  as a result of liquidation,  sale of a large portion of
     rela-     its assets,  change in its corporate goal or commercial activity,
     tions:    changes in  management,  a merger or  reorganization),  UBS shall
               have the right, if such changes may have a substantial  effect on
               the client's ability to honor its present and future  commitments
               incurred  under  this  contract,  to  demand,  regardless  of the
               duration of these  credit  facilities,  reimbursement  of all the
               claims  derived  from  it  (capital,  interest,  commissions  and
               charges,  etc.),  which  will thus  become  immediately  due as a
               result of such notice.

     Non-      For  the  entire   duration  of  this  contract  and  until  full
     estab-    reimbursement of capital, interest, commission and charges, etc.,
     lishment  the  client  shall  not grant  any  guarantee  on behalf of other
     of        present or future commitments in the form of credits, loans,
     pledges:
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               leasing,  conditional promise or contingent obligation to pay any
               amount and any other form of  financial  commitment  without  the
               express,  written approval of UBS. The only authorized exceptions
               are  mortgage  loans and credits  existing  under the  guarantees
               established today.

     Substan-  If  the  financial   and/or   income   situation  of  the  client
     tial      deteriorates considerably, or if such a situation is foreseeable,
     deterio-  UBS shall have the right to amend the terms of this contract and,
     ration    if  negotiations  started  on this  matter  cannot  arrive  at an
     of the    agreement  acceptable to the parties  within 2 months,  to cancel
     degree    this contract, effective immediately,  under written notification
     of        to the client,  and  demand,  regardless  of the  duration of the
     solvency: granted credit  facilities,  to demand  reimbursement  of all the
               claims  derived  thereunder  (capital,  interest,  commission and
               charges,  etc.) which thus become  immediately due as a result of
               the cancellation.

     Change    If  restrictions  imposed by the Swiss  National  Bank or another
     in the    Swiss  authority   affect  this  contract  and  it  is  therefore
     overall   renegotiated, UBS shall be authorized, if the negotiations do not
     condi-    result  in  an   agreement  acceptable  to  both  parties  within
     tions:    2 months, to cancel this contract,  effective immediately,  under
               written  notification  to  the  client,  and,  regardless  of the
               duration   of  the   granted   credit   facilities,   to   demand
               reimbursement  for all the  claims  derived  therefrom  (capital,
               interest,  commissions and charges,  etc.), which thus become due
               immediately as a result of this cancellation.

     Cancella- Except for special  agreements,  UBS shall have the right,  under
     tion:     the general conditions, to cancel the granted credit facility/ies
               at any time, effective immediately.

               Regardless of the duration of the granted credit facilities,  UBS
               reserves the right to prohibit  utilization of the limits granted
               under  this  contract,  effective  immediately  and/or  to demand
               reimbursement  of all the claims  derived  thereunder in capital,
               interest,  commission  and  charges,  which shall thus become due
               immediately if the client violates a stipulation of this contract
               or another credit  agreement it has stipulated with UBS or with a
               third party.

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The following  amortization  schedule has been drawn up for the above  mentioned
facilities:
SFr. 125,000.00, payable by 12/31/97
SFr. 350,000.00, payable by 12/31/98; thereafter
SFr.  500,000.00 p.a.,  payable by December 31 of each year until the investment
credit has been fully repaid

It is  also  possible  to  effect supplementary amortizations on the due date of
each fixed rate credit, subject to our approval.

c)   cancellation  of the  CONSTRUCTION  CREDIT No.  0247/507.944.03  D for SFr.
     1,400,000.00

d)   cancellation  of the  INVESTMENT  CREDIT  No.  0247/507.944.02  X for  SFr.
     2,200,000.00

e)   cancellation of the LOAN BASED ON REAL PROPERTY No.  0247/507.994.90  B for
     SFr. 1,875,000.00

f)   maintaining the OPERATIONAL CREDIT in current account No. 0247/507.944.01 N
     for SFr. 300,000.00 (three hundred thousands Swiss francs)

     also   available  for  the  issuance  of  guarantees   (except  for  credit
     guarantees).

     This facility is guaranteed to us by:

     SFr. 1,700,000.00   joint and solidary surety of Chemoholding SA, Barbango,
                         pursuant to a separate surety instrument dated 1/5/95.

     Until  further  notice,  your debt to us will be subject  to the  following
     conditions:

     CURRENT ACCOUNT

     Interest     5.75% p.a.
     Commission   0.25% per quarter or fraction thereof

     ISSUANCE OF GUARANTEES

     Commission   0.3% per quarter or fraction  thereof,  with a minimum of SFr.
     50.00

     The following conditions also govern all the facilities listed under a), b)
     and f) of this contract;

--   the General Conditions of our bank, a copy of which you signed on 1/5/95;

--   the  deferral of the loan for SFr.  2,000,000.00,  granted to you by Bigmar
     Inc., Delaware (USA)


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--   the  registration  of your structure on lot 174 of RFD of Barbango with the
     Land Registry of collaterals;

--   the unsolicited  presentation of the annual statements of your company by 4
     months after the close of the fiscal year;

--   the unasked for  presentation  of the  consolidated  annual  statements  of
     Bigmar Inc., Delaware (SA) by 4 months after the close of the fiscal year;

With reference to the foregoing and as we notified you by our letter of 6/14/96,
we debited your current account No. 0247/507.944.01 N with:

SFr. 37,500.00, charge for consolidating our credits
SFr.     10.00, cantonal stamp
SFr. 37,510.00, value date 11/26/96.

This contract cancels and replaces all previous agreements,  except as confirmed
by our letter of 6/14/96.

We enclose a duplicate of its  contract  which is to be duly signed on each page
as signal of agreement with its contents, and returned to us.

Sincerely,

Union Bank of Switzerland

G. Ambrosetti                           PP. R. Burckhard
/signature/                             /signature/

Enclosures

John Tramontana                         Federico Stroppolo
/signature/                             /signature/

/stamp/: Approved and signed
         M. Paris



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