Modification to Commercial Promissory Note Agreement



 EXHIBIT10.43 
  
 THIRD MODIFICATION TO COMMERCIAL PROMISSORY 
 NOTE AND LOAN AND SECURITY AGREEMENT 
  
 THIS THIRD MODIFICATION TO COMMERCIAL PROMISSORY NOTE AND LOAN AND SECURITY AGREEMENT (“Modification”) is made and entered into as of
this 30th day of January, 2004 by and between SALIX PHARMACEUTICALS, LTD., a Delaware corporation and
SALIX PHARMACEUTICALS, INC., a California corporation (collectively, jointly and severally, “Borrower”) and RBC CENTURA BANK (“Bank”). 
  
 RECITALS 
  
 Bank made a loan to Borrower pursuant to the terms of a Commercial Promissory Note dated September 30, 2002 in the original principal amount of up to
Seven Million Dollars ($7,000,000.00) (with all amendments and modifications thereto, the “Note”) and a Loan and Security Agreement dated September 30, 2002 (with all amendments and modifications thereto, the “Loan
Agreement”; and with the Note and all other instruments, documents and agreements delivered in connection with the Note or Loan Agreement, or securing the same, and all amendments and modifications thereto, collectively the “Loan
Documents”). Borrower has requested Bank extend the current term of the Loan made pursuant to the Loan Documents, and to modify certain covenants within this Loan Agreement, and Bank has agreed to do so as set forth below. 
  
 NOW, THEREFORE, for and in consideration of the mutual promises herein
contained, and other good and valuable consideration, the receipt and independent sufficiency of which are hereby acknowledged, the parties agree as follows: 
  

1. Incorporation of Recitals. The foregoing Recitals are hereby incorporated in this Modification. 
  
 2. Modification to Note; Conforming Modification of Loan Agreement.
The Maturity Date is hereby extended until January 31, 2005, and in connection therewith, Section 2.1 of the Note is hereby deleted in its entirety, and a new Section 2.1 is inserted in lieu thereof, reading as follows: 
  
 “Section 2.1 Interest Payment Terms. Interest shall be payable
monthly, in arrears, beginning October 10, 2002 and continuing on the same calendar day of each consecutive month thereafter until January 31, 2005 (the “Maturity Date”), when all accrued but unpaid interest is due and payable in
full.” 
  
 In furtherance thereof, the “Revolving Maturity Date”,
as defined in Exhibit A to the Loan Agreement is hereby modified to be and mean January 31, 2005. 
  
 3. Modification to Loan Agreement. The “Maximum Quarterly Loss” financial covenant contained in the Loan Agreement is hereby removed, and
in connection therewith, Section 6.9(b) of the Loan Agreement is hereby deleted in its entirety. 
  
 4. Fees and Expenses. Bank’s agreement to extend the Maturity Date of the Note and to make the foregoing modifications and amendments is
subject in all respects to Borrower’s payment of a modification/renewal fee of Eight Thousand Five Hundred Dollars ($8,500.00), and all costs and expenses incurred or suffered by Bank in connection with this Agreement, including, without
limitation, attorneys’ fees. 
  
 5. Effect of
Modification. Nothing contained in this Modification shall in any way waive, annul, vary and affect any provision, condition, covenant and agreement contained in the Note and other Loan Documents, except as specifically modified herein, nor
affect and impair any rights, powers and remedies under the Loan Documents. The Note, as modified by this Modification, and the other Loan Documents contain the entire agreement of the parties hereto and the undersigned does hereby ratify, confirm
and reaffirm the terms of, and their respective agreements, obligations and duties under, each of the Note, Loan Agreement and other Loan Documents, all of which shall remain in full force and effect, as modified herein. This Modification shall be
binding upon any assignee and successor in interest of the parties hereto, and Borrower waives and will not assert against any transferee and assignee of Bank any claims, defenses, set-offs and rights of recoupment which Borrower could assert
against Bank, except defenses which Borrower cannot waive. 







 6. Miscellaneous. This Modification shall be deemed to have been executed and delivered in North
Carolina regardless of where the signatories may be located at the time of execution and shall be governed by and construed in accordance with the substantive laws of the State of North Carolina, excluding, however, the conflict of law provisions
thereof. This Modification may be executed in any number of counterparts with the same effect as if all parties hereto had signed the same document. All such counterparts shall be construed together and shall constitute one instrument, but in making
proof hereof it shall only be necessary to produce one such counterpart. It is the intention of the parties that this Modification and the Note, the other Loan Documents, and any other commitment letters, documents or agreements related to or
entered into in connection with the Loan Documents (or any of them), be interpreted in a consistent manner; provided, however, in the event of any irreconcilable conflict in the provisions of this Modification and the provisions of any of the Loan
Documents, the provisions of this Modification shall control. 
  
 IN WITNESS WHEREOF, the parties have caused this Modification to be executed with authority duly obtained, as of the date first written above. 
  

			
	 SALIX PHARMACEUTICALS, LTD., a Delaware corporation

		
	 By:
	 	 /s/ Adam C. Derbyshire

	 	 	

	 Print Name:
	 	 Adam C. Derbyshire

	 Title:
	 	 Sr. Vice President, Finance and Administration and CFO

	
	 SALIX PHARMACEUTICALS, INC., a California corporation

		
	 By:
	 	 /s/ Adam C. Derbyshire

	 	 	

	 Print Name:
	 	 Adam C. Derbyshire

	 Title:
	 	 Sr. Vice President, Finance and Administration and CFO

	
	 RBC CENTURA BANK

		
	 By:
	 	 /s/ Win Bear

	 	 	

	 Print Name:
	 	 Win Bear

	 Title:
	 	 Senior Account Manager



  
  

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