Document:

Exhibit 10.30

                              EMPLOYMENT AGREEMENT

THIS EMPLOYMENT  AGREEMENT (this  "Agreement made and entered into this 18th day
of October 2001, to be effective on October 18, 2001 ("Effective  Date"), by and
between INSpire Insurance Solutions, Inc., a Texas corporation ("Employer"), and
Richard J. Marxen, a resident of Texas ("Employee").

                                   WITNESSETH:

WHEREAS, Employer is a corporation engaged in business in the State of Texas and
throughout the United States;  WHEREAS,  Employer  desires to employ Employee in
the capacity of Chief  Executive  Officer and President stems upon the terms and
conditions hereinafter set forth; and

WHEREAS,  Employee  agreeing to enter into this  Agreement  with  respect to his
Services  employment  and services  upon terms and  conditions  hereinafter  set
forth.

          NOW,   THEREFORE  in   consideration   of  the  mutual  covenants  and
obligations  contained  herein,  Employer  hereby employs  Employee and Employee
hereby accepts such  employment  upon the terms and conditions  hereinafter  set
forth:

          1 . Term of  Agreement.  The  term of this  Agreement  shall  begin on
October 18th 2001. The Agreement can be terminated as set forth in Section 8.

          2. Duties of  Employee.  Employee  agrees that during the term of this
Agreement,  he will  devote his full  professional  and  business-related  time,
skills and best efforts to the businesses of Employer in the capacity of CEO and
President or such other  capacity as Employer  and  Employee may agree upon.  In
addition,  Employee  shall devote all necessary time and his best efforts in the
performance  of any other  duties as may be assigned to him from time to time by
the Board of Directors  of Employer  including,  but not limited to,  serving on
Employer's  Board of  Directors  if  elected.  Employee  shall  devote  his full
professional  and  business  skills to Employer  as his primary  responsibility.
Employer  shall take such  action as may be  necessary  to cause  Employee to be
appointed  to the Board of  Directors  of the Company  (and to any  executive or
similar  committees  thereof) and to have Employee nominated for election to the
Board of  Directors  to serve as a director  during  each year of  Employee  may
engage in personal,  passive investment  activities  provided such activities do
not  interfere  with the  performance  of his duties  hereunder  and violate the
noncompetition and nondisclosure provisions set forth herein.

          3. Compensation.

                    (a) Base Salary.  Employer shall pay Employee a monthly base
          salary of twenty seven  thousand and eighty  three  dollars  ($27,083)
          which  equates to  $325,000.00  per annum.  Such base  salary  will be
          adjusted  from time to time in accordance  with then current  standard
          salary administration guidelines of Employer.  Employee's salary shall
          be subject to all appropriate  federal and state withholding taxes and
          shall be payable in accordance  with the normal payroll  procedures of
          Employer.  Employee  shall also  receive a monthly  car  allowance  of
          $1000.  Such  car  allowance  may be  adjusted  from  time  to time in
          accordance with the then standard practice.

                    (b) Annual  Bonus.  In  addition  to the salary set forth in
          Section 3(a) hereof,  Employee  shall be entitled to  participate in a
          bonus  incentive  plan  based on  individual  contribution  and  shall
          receive a pro-rata  share for the  period  ending  12/31/01.  Employer
          agrees that the Bonus Plan shall not be terminated  by Employer  prior
          to the  termination of this Agreement.

                    (c) Stock Options.  Employee will receive an equity position
          of 800,000 stock options,  under an incentive plan.  Employee shall be
          granted stock options for shares of common stock of Employer  pursuant
          to the terms of a Stock Option  Agreement  granted under the MiliRisk,
          Inc.  1997 Stock  Option  Plan,  as amended,  a copy of which has been

<PAGE>

          provided to Employee.  All options will vest upon attaining the strike
          price.  (Strike price will be re-calculated  within sixty (60) days of
          the reverse split)
<TABLE>
<CAPTION>

                           Tier 1       Tier 2       Tier 3       Tier 4       Tier 5       Tier 6        Tier 7
        --------------- ------------- ------------ ------------ ------------ ------------ ------------ -------------
        <S>             <C>           <C>          <C>          <C>          <C>          <C>          <C>

        Shares          200,000       100,000      100,000      100,000      100,000      100,000      100,000
        --------------- ------------- ------------ ------------ ------------ ------------ ------------ -------------
        Strike Price    Market        1.50         2.5          3.5          4.5          5.5          6.5
        --------------- ------------- ------------ ------------ ------------ ------------ ------------ -------------
        Vesting         Immediate     Immediate    Immediate    Immediate    Immediate    Immediate    Immediate
        --------------- ------------- ------------ ------------ ------------ ------------ ------------ -------------

</TABLE>

          4. Fringe  Benefits.  The terms of this Agreement  shall not foreclose
Employee  from  participating  with other  employees  of Employer in such fringe
benefit or incentive  compensation  plans as may be authorized  and adopted from
time to time by Employer; provided, however, that Employee must meet any and all
eligibility   provisions   required  under  said  fringe  benefit  or  incentive
compensation  plans.  Employee  may be granted  such other  fringe  benefits  or
perquisites as Employee and Employer may from time to time agree upon.

          5.  Vacations.  Employee  shall  be  entitled  to the  number  of paid
vacation  days in each  calendar  year as shall be  determined  by the  Board of
Directors of Employer from time to time. In no event, however, shall Employee be
entitled to less than four weeks paid vacation during each calendar year.

          6. Reimbursement of Expenses.  Employer  recognizes that Employee will
incur  legitimate  business  expenses  in the course of  rendering  services  to
Employer  hereunder.   Accordingly,  Employer  shall  reimburse  Employee,  upon
presentation of receipts or other adequate documentation,  for all necessary and
reasonable  business  expenses  incurred by Employee in the course of  rendering
services to Employer under this Agreement.

          7. Working Facilities.  Employee shall be furnished an office and such
other  facilities  and  services  suitable to his  position and adequate for the
performance  of his  duties,  which  shall be  consistent  with the  policies of
Employer.

          8.  Termination.  The  employment  relationship  between  Employee and
Employer created hereunder shall terminate upon the occurrence of any one of the
following events:

          (a) Death or Permanent  Disability.  The death or permanent disability
of Employee.  For the purpose of this Agreement,  the "permanent  disability" of
Employee shall mean Employee's  inability,  because of his injury,  illness,  or
other incapacity (physical or mental), to perform the essential functions of the
position  contemplated  herein,  with or  without  reasonable  accommodation  to
Employee  with  respect  to such  injury,  illness  or other  incapacity,  for a
continuous  period of 150 days or for 180 days out of a continuous period of 360
days.  Such permanent  disability  shall be deemed to have occurred on the 150th
consecutive  day or on the 180th day within the specified  period,  whichever is
applicable.

          (b) Termination for Cause. The following events, which for purposes of
this Agreement shall constitute "cause" for termination:

          (1) The willful breach by Employee of any provision of Sections 2, 11,
12, or 13 hereof  (including  but not  limited  to a  refusal  to follow  lawful
directives  of the Board of Directors  of Employer)  after notice to Employee of
the particular  details thereof and a period of 10 days thereafter  within which
to cure such breach and the failure of Employee to cure such breach  within such
10 day period;

          (2) Any act of fraud,  misappropriation  or  embezzlement  by Employee
with respect to any aspect of Employer's business;

<PAGE>

          (3) The  illegal  use of drugs  by  Employee  during  the term of this
Agreement  that,  in the  determination  of the Board of  Directors of Employer,
substantially interferes with Employee's performance of his duties hereunder;

          (4) Substantial failure of performance by Employee that is repeated or
continued  after 30 day written  notice to Employee of such  failure and that is
reasonably  determined  by the Board of Directors  of Employer to be  materially
injurious to the  business or  interests  of Employer  and which  failure is not
cured by Employee within such 30 day period; or

          (5) Conviction of Employee by a court of competent  jurisdiction  of a
felony or of a crime involving moral turpitude.

          Any notice of discharge shall describe with reasonable specificity the
cause or causes for the  termination  of Employee's  employment,  as well as the
effective date of the termination  (which effective date may be the date of such
notice). If Employer terminates Employee's employment for any of the reasons set
forth above, Employer shall have no further obligations hereunder from and after
the effective date of termination (other than as set forth below) and shall have
all other rights and remedies available under this or any other agreement and at
law or in equity.

          (c)  Termination by Employee with Notice.  Employee may terminate this
Agreement without liability to Employer arising from the resignation of Employee
upon six (6) months written notice to Employer. Employer retains the right after
proper notice of Employee's  voluntary  termination to require Employee to cease
employment immediately;  provided, however, in such event, Employer shall remain
obligated to pay Employee his salary  during the six (6) months  notice  period.
During such six (6) months notice period, Employee shall provide such consulting
services  to  Employer  as Employer  may  reasonably  request  and shall  assist
Employer  in training  his  successor  and  generally  preparing  for an orderly
transition.

          (d)  Termination by Employer with Notice.  Employer may terminate this
Agreement at any time upon six (6) months written notice to Employee;  provided,
however, upon such notice Employee shall not be required to perform any services
for  Employer  other than  during  the  period of three (3)  months  immediately
following  the receipt of such notice of  termination  in which  Employee  shall
assist Employer in training his successor and generally preparing for an orderly
transition.

         9.  Compensation Upon Termination.

          (a) General.  Upon the termination of Employee's employment under this
Agreement  before the  expiration  of the  stated  term  hereof for any  reason,
Employee  shall be  entitled to  compensation  as set forth in Section 8 (i) the
salary earned by him before the effective  date of  termination,  as provided in
Section 3(a) hereof, prorated on the basis of the number of full days of service
rendered by Employee during the year to the effective date of termination,  (ii)
any accrued, but unpaid,  vacation or sick leave benefits,  (iii) any authorized
but  unreimbursed  business  expenses,  and (iv) any accrued,  but unpaid annual
bonus.

          (b)  Termination  For Other Than  Cause.  If such  termination  is the
result of the  discharge  of Employee by Employer  for any reason other than (i)
his death or  permanent  disability,  (ii) by Employer  or Employee  with notice
pursuant to Section 8(d) or 8(c),  respectively,  or (iii) for cause (as defined
in Section  8(b)  hereof),  then  Employee  shall not be  entitled  to receive a
severance payment.

          (c) Termination For Cause. If the employment relationship hereunder is
terminated by Employer for cause (as defined in Section 8(b)  hereof),  Employee
shall not be  entitled  to any  severance  compensation,  except as  provided in
Section 9(a) above.

          (d)   Termination   by  Employer  with  Notice.   If  the   employment
relationship  is  terminated  by Employer  other than for cause or the permanent
disability  of  Employee,  then  Employee  shall be  entitled  to  receive  as a
severance  payment and as  compensation  for all  services  performed  hereunder
pursuant  to Section  8(d) hereof an amount  equal to the salary  that  Employee
would have received for the  remainder of the term of this  Agreement or six (6)
months,  whichever is less, in accordance  with the regular  payroll  periods of
Employer during the applicable period.

<PAGE>

          (e)   Termination   by  Employee  with  Notice.   If  the   employment
relationship  is  terminated by Employee  pursuant to the  provisions of Section
8(c) hereof, Employee shall be entitled to receive as a severance payment and as
compensation  for all  services  performed  hereunder  pursuant to Section  8(c)
hereof the salary that  Employee  would have  received for the  remainder of the
term of this Agreement or six (6) months,  whichever is less, in accordance with
the regular payroll period of Employer during the applicable period.

          (f)  Survival.  The  provisions  of  Sections 9, 11, 12, and 13 hereof
shall survive the termination of the employment  relationship hereunder and this
Agreement to the extent necessary or reasonably appropriate to effect the intent
of the parties hereto as expressed in such provisions.

          10. Other Agreements. This Agreement shall be separate and apart from,
and  shall  be  deemed  to  alter  the  terms  of,  any  executive  compensation
agreements,   deferred  compensation  agreements,   bonus  agreements,   general
employment  benefits plans, stock option plans and any other plans or agreements
entered into between  Employee and Employer  pursuant to which Employee has been
granted specific rights, benefits or options.

          11. Noncompetition.  Employer agrees that employee upon termination of
this  agreement   shall  have  the  right  to  pursue  any  and  all  employment
opportunities  whether  directly  or  indirectly  related  to  the  business  of
employer.

          12.  Confidential  Data.  Employee  further  agrees  that,  during his
employment  with  Employer and  thereafter,  he will keep  confidential  and not
divulge  to  anyone,  disseminate  nor  appropriate  for his own  benefit or the
benefit of another any confidential  information described in Exhibit A attached
hereto and incorporated by reference herein (the "Confidential Data").  Employee
hereby  acknowledges  and agrees that this  prohibition  against  disclosure  of
Confidential  Data is in addition to, and not in lieu of, any rights or remedies
that Employer may have available  pursuant to the laws of any jurisdiction or at
common law to prevent the  disclosure of trade secrets,  and the  enforcement by
Employer  of its rights and  remedies  pursuant to this  Agreement  shall not be
construed  as a waiver of any other  rights or  available  remedies  that it may
possess in law or equity absent this Agreement.

          13. Nonsolicitation of Employees.  Employee covenants that, during his
employment  with  Employer  and for a period  of one (1)  year  from the date of
termination  of his  employment  with  Employer,  he will  not (i)  directly  or
indirectly induce or attempt to induce any employee of Employer to terminate his
or her  employment  or (ii) without  prior  written  consent of Employer,  offer
employment  either on behalf of himself or on behalf of any other  individual or
entity to any employee of Employer or to any terminated employee of Employer.

          14. Property of Employer. Employee acknowledges that from time to time
in the course of providing services pursuant to this Agreement he shall have the
opportunity to inspect and use certain  property,  both tangible and intangible,
of Employer  and  Employee  hereby  agrees that such  property  shall remain the
exclusive property of Employer,  and Employee shall have no right or proprietary
interest in such property,  whether tangible or intangible,  including,  without
limitation,  Employee's  customer and supplier lists,  contract forms,  books of
account, computer programs and similar property.

          15. Equitable  Relief.  Employee  acknowledges that the services to be
rendered  by  him  are  of  a  special,  unique,  unusual,  extraordinary,   and
intellectual character, which gives them a peculiar value, and the loss of which
cannot  reasonably or adequately be  compensated in damages in an action at law,
and that a breach by him of any of the  provisions  contained in this  Agreement
will cause Employer irreparable injury and damage. Employee further acknowledges
that he possesses  unique skills,  knowledge and ability and that competition by
him in violation of this Agreement or any other breach of the provisions of this
Agreement  would be  extremely  detrimental  to  Employer.  By  reason  thereof,
Employee  agrees  that  Employer  shall be  entitled,  in  addition to any other
remedies it may have under this Agreement or otherwise,  to injunctive and other
equitable relief to prevent or curtail any breach of this Agreement by him.
<PAGE>

          16.  "Change of Control".  In the event (each such event, a "Change of
Control")  Employer becomes a subsidiary of another  corporation or entity or is
merged or consolidated  into another  corporation or entity or substantially all
of the assets of Employer are sold to another  corporation or entity becomes the
owner of record  or  beneficially  of  securities  of  Employer  that  represent
thirty-three  and  one-third  percent (33 1/3%) or more of the  combined  voting
power of Employer's then outstanding securities entitled to elect Directors;  or
those  directors  nominated  by  the  original  Board  of  Directors  no  longer
constitute  a  majority,  then this is deemed to be a "Change of  Control";  all
options not vested at date of "change of Control" will immediately vest.

          17.  Successors  Bound.  This Agreement shall be binding upon Employer
and Employee, their respective heirs, executors, administrators or successors in
interest,  including without limitation,  any corporation,  partnership or other
entity acquiring control of Employer pursuant to Section 16 hereof.

          18.  Severability  and  Reformation.  The  parties  hereto  intend all
provisions of this Agreement to be enforced to the fullest  extent  permitted by
law.  If,  however,  any  provision  of this  Agreement  is held to be  illegal,
invalid,  or unenforceable  under present or future law, such provision shall be
fully  severable,  and this Agreement shall be construed and enforced as if such
illegal,  invalid, or unenforceable  provision were never a part hereof, and the
remaining  provisions  shall  remain in full  force and  effect and shall not be
affected  by  the  illegal,  invalid,  or  unenforceable  provision  or  by  its
severance.

          19.  Integrated  Agreement.  This  Agreement  constitutes  the  entire
Agreement  between the parties  hereto with regard to the subject matter hereof,
and there are no agreements,  understandings,  specific restrictions, warranties
or  representations  relating to said subject  matter  between the parties other
than those set forth herein or herein provided for.

          20. Attorneys' Fees. If any action at law or in equity,  including any
action for declaratory or injunctive  relief, is brought to enforce or interpret
the  provisions of this  Agreement,  the  prevailing  party shall be entitled to
recover reasonable  attorneys' fees from the nonprevailing party, which fees may
be set by the  court  in the  trial  of such  action,  or may be  enforced  in a
separate action brought for that purpose, and which fees shall be in addition to
any other relief which may be awarded.

          21.  Notices.  All  notices  and  other  communications   required  or
permitted to be given  hereunder shall be in writing and shall be deemed to have
been duly  given if  delivered  personally,  mailed by  certified  mail  (return
receipt  requested)  or sent by overnight  delivery  service,  cable,  telegram,
facsimile  transmission or telex to the parties at the following addresses or at
such other addresses as shall be specified by the parties by like notice: (a) If
to Employer:  INSpire Insurance  Solutions,  Inc. 300 Burnett Street Fort Worth,
Texas 76102-2799

(b)  If to Employee:                                 Richard J. Marxen
                                                     333 Throckmorton, #1104
                                                     Fort Worth, Texas

Notice so given shall,  in the case of notice so given by mail,  be deemed to be
given and  received on the fourth  calendar  day after  posting,  in the case of
notice so given by overnight  delivery  service,  on the date of actual delivery
and, in the case of notice so given by cable, telegram,  facsimile transmission,
telex or personal delivery,  on the date of actual  transmission or, as the case
may be, personal delivery.

          22. Further Actions.  Whether or not  specifically  required under the
terms of this  Agreement,  each party  hereto  shall  execute and  deliver  such
documents and take such further  actions as shall be necessary in order for such
party to perform all of his or its  obligations  specified  herein or reasonably
implied from the terms hereof.
<PAGE>

          23.  GOVERNING LAW. THIS AGREEMENT  SHALL BE GOVERNED BY AND CONSTRUED
IN ACCORDANCE WITH THE INTERNAL LAW, AND NOT THE LAW OF CONFLICTS,  OF THE STATE
OF TEXAS.

          24. Assignment.  This Agreement is personal to Employee and may not be
assigned in any way by Employee  without the prior written  consent of Employer.
This Agreement  shall not be assignable or delegable by Employer,  other than to
an affiliate  of Employer,  except if there is a Change of Control as defined in
Section 16,  Employer  may assign its rights and  obligations  hereunder  to the
person, corporation, partnership or other entity that has gained such control.

          25. Counterparts. This Agreement may be executed in counterparts, each
of which will take effect as an original and all of which shall evidence one and
the same Agreement.

          IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the Effective Date.

                                    INSPIRE INSURANCE SOLUTIONS, INC.

                                    By:__________________________________
                                    Name:________________________________

                                    By:__________________________________

                                    Name:________________________________
                                            Chair, Compensation Committee

                                    Title:________________________________
                                    EMPLOYEE:
                                    ______________________________________
                                    Richard J. Marxen

<PAGE>

                                    EXHIBIT A
                            CONFIDENTIAL INFORMATION

          1. All  software/systems  (including  all present,  planned and future
software),  whether  licenses  or  unlicensed,  developed  by or on behalf of or
otherwise  acquired  by  INSpire  Insurance  Solutions,   Inc.  or  any  of  its
subsidiaries.

                  "All software/system" shall mean:

                    o         all code in whatever form
                    o         all data pertaining to the architecture and design
                              of such software systems
                    o         all documentation in whatever form
                    o         all flowcharts
                    o         any reproduction or recreation in whole or in part
                              of any of the above in whatever form.

         2.       All business plans and strategies including

                    o         strategic plans
                    o         product plans
                    o         marketing plans
                    o         financial plans
                    o         operating plans
                    o         resource plans
                    o         all research and  development  plans including all
                              data produced by such efforts.

          3. Internal  policies,  procedures,  methods and approaches  which are
unique to INSpire Insurance Solutions, Inc. and are not public.

          4. Any  information  relating to the employment,  job  responsibility,
performance,  salary  and  compensation  of any  present  or future  officer  or
employee of INSpire Insurance Solutions, Inc.Filing Services Provided by RR Donnelley Financial -- LINE OF CREDIT

 Exhibit 10.1 
  
 CREDIT AGREEMENT 
  
 THIS AGREEMENT is entered into as of September 27, 2002, by and between
TANOX, INC. a Delaware corporation (“Borrower”), and WELLS FARGO BANK TEXAS, NATIONAL ASSOCIATION (“Bank”). 
  
 RECITALS 
  
 Borrower has requested that Bank extend or continue credit to Borrower as
described below, and Bank has agreed to provide such credit to Borrower on the terms and conditions contained herein. 
  
 NOW, THEREFORE, for valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Bank and Borrower hereby agree as follows: 
  
 ARTICLE I 
 CREDIT TERMS 
  
 SECTION 1.1        LINE OF CREDIT. 
  
 (a) Line of Credit. Subject to the terms and conditions of this Agreement, Bank hereby agrees to make advances to Borrower from time to time up to and including September 27 , 2006, not to
exceed at any time the aggregate principal amount of Sixteen Million Dollars ($16,000,000.00) (“Line of Credit”), the proceeds of which shall be used to finance Borrower’s working capital requirements including the purchase of
property, plant and equipment. Borrower’s obligation to repay advances under the Line of Credit shall be evidenced by a promissory note substantially in the form of Exhibit “A” attached hereto (“Line of Credit Note”), all
terms of which are incorporated herein by this reference. 
  
 (b) Borrowing and Repayment. Borrower may from
time to time during the term of the Line of Credit borrow, partially or wholly repay its outstanding borrowings, and reborrow, subject to all of the limitations, terms and conditions contained herein or in the Line of Credit Note; provided however,
that the total outstanding borrowings under the Line of Credit shall not at any time exceed the maximum principal amount available thereunder, as set forth above. 
  
 SECTION 1.2.        STANDBY LETTER OF CREDIT. 
  
 (a) Standby Letter of Credit. Bank has issued or cause an affiliate to issue a standby letter of credit for the account of Borrower and for the benefit of Travelers
Casualty and Surety Company of America, Travelers Casualty and Surety Company, Farmington Casualty Company, Travelers Casualty and Surety Company of Illinois, Travelers Casualty and Surety Company of Canada to finance the support of surety bond (the
“Standby Letter of Credit”) in the principal amount of Four Million One Hundred Seventeen Thousand Dollars ($4,117,000.00). The Standby Letter of Credit has an expiration date of July 8, 2003, and is subject to the additional terms of the
Letter of Credit Agreement, application and any related documents required by Bank in connection with the issuance thereof (the “Letter of Credit Agreement”). Subject to the terms and conditions of this Agreement, Bank hereby confirms that
the Standby Letter of Credit remains in full force and effect. 
  
 (b) Repayment of Drafts. Each draft paid
under the Standby Letter of Credit shall be repaid by Borrower in accordance with the provisions of the Letter of Credit Agreement. 

 
 -1- 

  
  
 SECTION
1.3.        INTEREST/FEES. 
  
 (a) Interest. The outstanding principal
balance of each credit subject hereto shall bear interest, and the amount of each draft paid under the Standby Letter of Credit shall bear interest from the date such draft is paid to the date such amount is fully repaid by Borrower, at the rate of
interest set forth in each promissory note or other instrument executed in connection therewith. 
  
 (b)
Computation and Payment. Interest shall be computed on the basis of a 360-day year, actual days elapsed, unless such calculation would result in a usurious rate, in which case interest shall be computed on the basis of a 365/366-day year, as the
case may be, actual days elapsed. Interest shall be payable at the times and place set forth in each promissory note or other instrument required hereby. 
  
 (c) Letter of Credit Fees. Borrower shall pay to Bank fees upon the issuance of each Letter of Credit, upon the payment or negotiation of each draft under any Letter of Credit and upon the
occurrence of any other activity with respect to any Letter of Credit (including without limitation, the transfer, amendment or cancellation of any Letter of Credit) determined in accordance with Bank’s standard fees and charges then in effect
for such activity. 
  
 SECTION 1.4. COLLECTION OF PAYMENTS. Borrower authorizes Bank to collect all principal,
interest and fees due under each credit subject hereto by charging Borrower’s deposit account number xxxxxxxxxx with Bank, or any other deposit account maintained by Borrower with Bank, for the full amount thereof. Should there be insufficient
funds in any such deposit account to pay all such sums when due, the full amount of such deficiency shall be immediately due and payable by Borrower. 
  
 SECTION 1.5.        COLLATERAL. 
  
 As security for all indebtedness of Borrower to Bank subject hereto, Borrower hereby grants to Bank security interests of first priority in all Borrower’s Wells Capital Management account number xxxxxxxx. 

 
 All of the foregoing shall be evidenced by and subject to the terms of such security agreements, financing statements, deeds of trust and other
documents as Bank shall reasonably require, all in form and substance satisfactory to Bank. Borrower shall reimburse Bank immediately upon demand for all costs and expenses incurred by Bank in connection with any of the foregoing security, including
without limitation, filing and recording fees and costs of appraisals, audits and title insurance. 
  
 ARTICLE II

 REPRESENTATIONS AND WARRANTIES 
  
 Borrower makes the following representations and warranties to Bank, which representations and warranties shall survive the execution of this Agreement and shall continue in full force and effect until the full and final payment, and
satisfaction and discharge, of all obligations of Borrower to Bank subject to this Agreement. 
  
  

 
 -2- 

  
 SECTION 2.1. LEGAL STATUS. Borrower is a corporation, duly organized and existing
and in good standing under the laws of the State of Delaware, and is qualified or licensed to do business (and is in good standing as a foreign corporation, if applicable) in all jurisdictions in which such qualification or licensing is required or
in which the failure to so qualify or to be so licensed could have a material adverse effect on Borrower. 
  
 SECTION
2.2. AUTHORIZATION AND VALIDITY. This Agreement and each promissory note, instrument and other document required hereby or at any time hereafter delivered to Bank in connection herewith (collectively, the “Loan Documents”) have been duly
authorized, and upon their execution and delivery in accordance with the provisions hereof will constitute legal, valid and binding agreements and obligations of Borrower enforceable in accordance with their respective terms, subject as to
enforcement only to bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting the enforcement of creditors’ rights generally and by general principles of equity, regardless of whether in a proceeding in equity or at
law. 
  
 SECTION 2.3. NO VIOLATION. The execution, delivery and performance by Borrower of each of the Loan Documents
do not violate any provision of any applicable law or regulation, or contravene any provision of the Certificate of Incorporation or By-Laws of Borrower, or result in any breach of or default under any contract, obligation, indenture or other
instrument to which Borrower is a party or by which Borrower may be bound. 
  
 SECTION 2.4. LITIGATION. There are no
pending, or to the best of Borrower’s knowledge threatened, actions, claims, investigations, suits or proceedings by or before any governmental authority, arbitrator, court or administrative agency which could have a material adverse effect on
the financial condition or operation of Borrower other than those disclosed by Borrower to Bank in writing prior to the date hereof. 
  
 SECTION 2.5. FINANCIAL STATEMENTS. The financial statements of Borrower for 2001 and for Borrower’s fiscal quarters ended March 31 and June 30, 2002, (i) have been prepared in accordance with GAAP, applied on a basis
consistent, except as otherwise noted therein, with the Borrower’s financial statements for the previous fiscal year, and (ii) fairly present on a consolidated basis the financial position of the Borrower, as of the dates thereof, and the
results of operations for the periods covered thereby, subject in the case of interim financial statements, to normal year-end adjustments and omission of certain footnotes as permitted by the SEC. As of the Effective Date, the Borrower and its
Subsidiaries, considered as a whole, have no material contingent liabilities or material indebtedness required under GAAP to be disclosed in a consolidated balance sheet of the Borrower that were not disclosed in the financial statements referred to
in this Section 2.5 or in the notes thereto or otherwise disclosed in writing to the Bank by Borrower. Since the date of such financial statement there has been no material adverse change in the financial condition of Borrower, nor has Borrower
mortgaged, pledged, granted a security interest in or otherwise encumbered any of its assets or properties except in favor of Bank or as otherwise permitted by Bank in writing. 
  
 SECTION 2.6. INCOME TAX RETURNS. The Borrower has filed all federal tax returns and all other material tax returns required to be filed, and has paid all governmental
taxes, rates, assessments, fees, charges and levies reflected thereon (collectively, “Taxes”) except such Taxes, if any, as are being contested in good faith and for which reserves have been provided in accordance with GAAP or except where
the failure to pay such Taxes is not reasonably expected to have a material adverse effect on Borrower. No tax liens have been filed and no 
  

 
 -3- 

 claims are being asserted for Taxes except to the extent that such liens or claims, in the aggregate, are not reasonably expected to have a
material adverse effect on Borrower. 
  
 SECTION 2.7. NO SUBORDINATION. There is no agreement, indenture, contract or
instrument to which Borrower is a party or by which Borrower may be bound that requires the subordination in right of payment of any of Borrower’s obligations subject to this Agreement to any other obligation of Borrower. 

 
 SECTION 2.8. PERMITS, FRANCHISES. Borrower possesses, and will hereafter possess, all permits, consents, approvals, franchises
and licenses required and rights to all trademarks, trade names, patents, and fictitious names, if any, necessary to enable it to conduct the business in which it is now engaged in compliance with applicable law except where the failure to so hold
such permits, consents, approvals, franchises and licenses required and rights to all trademarks, trade names, patents, and fictitious names is not reasonably expected to have a material adverse effect on Borrower. 
  
 SECTION 2.9. ERISA. Borrower is in compliance in all material respects with all applicable provisions of the Employee Retirement Income
Security Act of 1974, as amended or recodified from time to time (“ERISA”); Borrower has not violated any provision of any defined employee pension benefit plan (as defined in ERISA) maintained or contributed to by Borrower (each, a
“Plan”); no Reportable Event as defined in ERISA has occurred and is continuing with respect to any Plan initiated by Borrower; Borrower has met its minimum funding requirements under ERISA with respect to each Plan; and each Plan will be
able to fulfill its benefit obligations as they come due in accordance with the Plan documents and under generally accepted accounting principles. 
  
 SECTION 2.10. OTHER OBLIGATIONS. Borrower is not in default on any obligation for borrowed money, any purchase money obligation or any other material lease, commitment, contract. 

 
 SECTION 2.11. ENVIRONMENTAL MATTERS. Except as disclosed by Borrower to Bank in writing prior to the date hereof, Borrower is
in compliance in all material respects with all applicable federal or state environmental, hazardous waste, health and safety statutes, and any rules or regulations adopted pursuant thereto, which govern or affect any of Borrower’s operations
and/or properties, including without limitation, the Comprehensive Environmental Response, Compensation and Liability Act of 1980, the Superfund Amendments and Reauthorization Act of 1986, the Federal Resource Conservation and Recovery Act of 1976,
and the Federal Toxic Substances Control Act, as any of the same may be amended, modified or supplemented from time to time. None of the operations of Borrower is the subject of any federal or state investigation evaluating whether any remedial
action involving a material expenditure is needed to respond to a release of any toxic or hazardous waste or substance into the environment. Borrower has no material contingent liability in connection with any release of any toxic or hazardous waste
or substance into the environment. 
  
 ARTICLE III 
 CONDITIONS 
  
 SECTION 3.1. CONDITIONS OF INITIAL EXTENSION OF CREDIT. The obligation
of Bank to extend any credit contemplated by this Agreement is subject to the fulfillment to Bank’s satisfaction of all of the following conditions: 
  

 
 -4- 

  
 (a) Approval of Bank Counsel. All legal matters incidental to the
extension of credit by Bank shall be satisfactory to Bank’s counsel. 
  
 (b) Documentation. Bank shall
have received, in form and substance satisfactory to Bank, each of the following, duly executed: 
  
 (i)         This Agreement and each promissory note or other instrument required hereby. 
 (ii)        Corporate Resolution: Borrowing. 
 (iii)       Certificate of Incumbency. 
 (iv)        Such other
documents as Bank may require under any other Section of this Agreement. 
  
 (c) Financial Condition. There
shall have been no material adverse change since June 30, 2002, as reasonably determined by Bank, in the financial condition or business of Borrower, nor any material decline, as determined by Bank, in the market value of any collateral required
hereunder or a substantial or material portion of the assets of Borrower. 
  
 (d) Insurance. Borrower shall
have delivered to Bank evidence of insurance coverage on all Borrower’s property, in form, substance, amounts, covering risks and issued by companies satisfactory to Bank. 
  
 SECTION 3.2. CONDITIONS OF EACH EXTENSION OF CREDIT. The obligation of Bank to make any subsequent extension of credit requested by Borrower hereunder shall be subject to
the fulfillment to Bank’s satisfaction of each of the following conditions: 
  
 (a) Compliance. The
representations and warranties contained herein and in each of the other Loan Documents shall be true on and as of the date of the signing of this Agreement and shall be true and correct in all material respects (except where the representation is
already qualified by materiality, in which case the representation shall be true and correct) and on the date of each extension of credit by Bank pursuant hereto, with the same effect as though such representations and warranties had been made on
and as of each such date, and on each such date: (i) no Event of Default as defined herein, and no condition, event or act which with the giving of notice or the passage of time or both would constitute an Event of Default, shall have occurred and
be continuing or shall exist; and (ii) the condition in Section 3.1 (c) must be satisfied. 
  
 (b)
Documentation. Bank shall have received all additional documents which may be required in connection with such extension of credit. 
  
 ARTICLE IV 
 AFFIRMATIVE COVENANTS 
  
 Borrower covenants that so long as Bank remains committed to extend credit to Borrower pursuant hereto, or any liabilities (whether direct or contingent, liquidated or unliquidated) of Borrower to Bank
under any of the Loan Documents remain outstanding, and until payment in full of all obligations of Borrower subject hereto, Borrower shall, unless Bank otherwise consents in writing: 
  

 
 -5- 

  
 SECTION 4.1. PUNCTUAL PAYMENTS. Punctually pay all principal, interest, fees or
other liabilities due under any of the Loan Documents at the times and place and in the manner specified therein. 
  
 SECTION 4.2. ACCOUNTING RECORDS. Maintain adequate books of record, and permit any representative of Bank, at any reasonable time, to inspect, audit and examine such books and records, to make copies of the same, and to inspect the
properties of Borrower. 
  
 SECTION 4.3. FINANCIAL STATEMENTS. Provide to Bank all of the following: 

 
 (a) not later than 120 days after the end of each fiscal year, Borrower’s Annual Report on Form 10-Q, including financial
statements of Borrower, audited by a certified independent public accountant acceptable to Bank, which financial statement will include a balance sheet, income statement, and statement of cash flow in accordance with generally accepted accounting
principles consistently applied; 
  
 (b) not later than 60 days after and as of the end of each fiscal quarter,
Borrower’s Quarterly Report on Form 10-Q, to include balance sheet, income statements, and statement of cash flow prepared in accordance with generally accepted accounting principles consistently applied subject to normal year end adjustments
and omission of certain footnotes as permitted by the SEC; and 
  
 (c) from time to time such other information as
Bank may reasonably request. 
  
 SECTION 4.4. COMPLIANCE. Preserve and maintain all licenses, permits, governmental
approvals, rights, privileges and franchises necessary for the conduct of its business except where the failure to so hold such permits, consents, approvals, franchises or licenses is not reasonably expected to have a material adverse effect on
Borrower; and comply with the provisions of all documents pursuant to which Borrower is organized and/or which govern Borrower’s continued existence and with the requirements of all laws, rules, regulations and orders of any governmental
authority applicable to Borrower and/or its business. 
  
 SECTION 4.5. INSURANCE. Maintain and keep in force
insurance of the types and in amounts customarily carried in lines of business similar to that of Borrower, including but not limited to fire, extended coverage, public liability, flood, property damage and workers’ compensation, with insurance
companies reasonably satisfactory to Bank, and deliver to Bank from time to time at Bank’s request schedules setting forth all insurance then in effect. 
  
 SECTION 4.6. FACILITIES. Keep all properties useful or necessary to Borrower’s business in good repair and condition, ordinary wear and tear excepted. 
  
 SECTION 4.7. TAXES AND OTHER LIABILITIES. Pay and discharge when due any and all indebtedness, obligations, assessments and taxes, both
real or personal, including without limitation federal and state income taxes and state and local property taxes and assessments, except such (a) as Borrower may in good faith contest or as to which a bona fide dispute may arise, and (b) for which
Borrower has made provision, to Bank’s satisfaction, for eventual payment thereof in the event Borrower is obligated to make such payment. 
  
 SECTION 4.8. LITIGATION. Promptly give notice in writing to Bank of any litigation pending or, to Borrower’s knowledge, threatened against Borrower. 
  

 
 -6- 

  
 SECTION 4.9. NOTICE TO BANK. Promptly (but in no event more than five (5) days
after the occurrence of each such event or matter) give written notice to Bank in reasonable detail of: (a) the occurrence of any Event of Default, or any condition, event or act which with the giving of notice or the passage of time or both would
constitute an Event of Default; (b) any change in the name or the organizational structure of Borrower; (c) the occurrence and nature of any Reportable Event or Prohibited Transaction, each as defined in ERISA, or any funding deficiency with respect
to any Plan; or (d) any termination or cancellation of any insurance policy which Borrower is required to maintain and for which alternate coverage has not been secured, or any uninsured or partially uninsured loss through liability or property
damage, or through fire, theft or any other cause affecting Borrower’s property which exceeds $1,000,000.00 in the aggregate. 
  
 ARTICLE V 
 NEGATIVE COVENANTS 
  
 Borrower further covenants that so long as Bank remains committed to extend credit to Borrower pursuant hereto, or any liabilities (whether direct or contingent, liquidated or unliquidated) of Borrower
to Bank under any of the Loan Documents remain outstanding, and until payment in full of all obligations of Borrower subject hereto, Borrower will not without Bank’s prior written consent: 
  

SECTION 5.1. USE OF FUNDS. Use any of the proceeds of any credit extended hereunder except for the purposes stated in Article I hereof. 
  
 ARTICLE VI 
 EVENTS OF DEFAULT 

 
 SECTION 6.1. The occurrence of any of the following shall constitute an “Event of Default” under this Agreement:

  
 (a) Borrower shall fail to pay when due any principal, interest, fees or other amounts payable under any of the
Loan Documents. 
  
 (b) Any financial statement or certificate furnished to Bank in connection with, or any
representation or warranty made by Borrower or any other party under this Agreement or any other Loan Document shall prove to be incorrect, false or misleading in any material respect when furnished or made. 
  
 (c) Any default in the performance of or compliance with any obligation, agreement or other provision contained herein or in any other
Loan Document (other than those referred to in subsections (a) and (b) above), and with respect to any such default which by its nature can be cured, such default shall continue for a period of twenty (20) days from its occurrence. 

 
 (d) Any default in the payment or performance of any obligation, or any defined event of default, under the terms of any
contract or instrument (other than any of the Loan Documents) pursuant to which Borrower has incurred any debt or other liability to any person or entity, including Bank. 
  

 
 -7- 

  
 (e) The filing of a notice of judgment lien against Borrower; or the recording of
any abstract of judgment against Borrower in any county in which Borrower has an interest in real property; or the service of a notice of levy and/or of a writ of attachment or execution, or other like process, against the assets of Borrower; or the
entry of a judgment against Borrower. 
  
 (f) Borrower shall become insolvent, or shall suffer or consent to or apply
for the appointment of a receiver, trustee, custodian or liquidator of itself or any of its property, or shall generally fail to pay its debts as they become due, or shall make a general assignment for the benefit of creditors; Borrower shall file a
voluntary petition in bankruptcy, or seeking reorganization, in order to effect a plan or other arrangement with creditors or any other relief under the Bankruptcy Reform Act, Title 11 of the United States Code, as amended or recodified from time to
time (“Bankruptcy Code”), or under any state or federal law granting relief to debtors, whether now or hereafter in effect; or any involuntary petition or proceeding pursuant to the Bankruptcy Code or any other applicable state or federal
law relating to bankruptcy, reorganization or other relief for debtors is filed or commenced against Borrower, or Borrower shall file an answer admitting the jurisdiction of the court and the material allegations of any involuntary petition; or
Borrower shall be adjudicated a bankrupt, or an order for relief shall be entered against Borrower by any court of competent jurisdiction under the Bankruptcy Code or any other applicable state or federal law relating to bankruptcy, reorganization
or other relief for debtors. 
  
 (g) There shall exist or occur any event or condition which Bank in good faith
believes impairs, or is substantially likely to impair, the prospect of payment or performance by Borrower of its obligations under any of the Loan Documents. 
  
 (h) The dissolution or liquidation of Borrower; or Borrower, or any of its directors, stockholders or members, shall take action seeking to effect the dissolution or liquidation of Borrower.

  
 SECTION 6.2. REMEDIES. Upon the occurrence of any Event of Default: (a) all principal and accrued and unpaid
interest outstanding under each of the Loan Documents, any term thereof to the contrary notwithstanding, shall at Bank’s option and without notice become immediately due and payable without presentment, demand, or any notices of any kind,
including without limitation notice of nonperformance, notice of protest, protest, notice of dishonor, notice of intention to accelerate or notice of acceleration, all of which are hereby expressly waived by Borrower; (b) the obligation, if any, of
Bank to extend any further credit under any of the Loan Documents shall immediately cease and terminate; and (c) Bank shall have all rights, powers and remedies available under each of the Loan Documents, or accorded by law, including without
limitation the right to resort to any or all security for any credit subject hereto and to exercise any or all of the rights of a beneficiary or secured party pursuant to applicable law. All rights, powers and remedies of Bank may be exercised at
any time by Bank and from time to time after the occurrence of an Event of Default, are cumulative and not exclusive, and shall be in addition to any other rights, powers or remedies provided by law or equity. 
  
 ARTICLE VII 
 MISCELLANEOUS 

 
 SECTION 7.1. NO WAIVER. No delay, failure or discontinuance of Bank in exercising any right, power or remedy under any of the
Loan Documents shall affect or operate as a waiver 
  

 
 -8- 

 of such right, power or remedy; nor shall any single or partial exercise of any such right, power or remedy preclude, waive or otherwise affect
any other or further exercise thereof or the exercise of any other right, power or remedy. Any waiver, permission, consent or approval of any kind by Bank of any breach of or default under any of the Loan Documents must be in writing and shall be
effective only to the extent set forth in such writing. 
  
 SECTION 7.2. NOTICES. All notices, requests and demands
which any party is required or may desire to give to any other party under any provision of this Agreement must be in writing delivered to each party at the following address: 
  
 BORROWER:     TANOX, INC. 
 4888
Loop Central Dr., Suite 820 
 Houston, TX 77081-2225 
 Attention: President 
 With copy to: General Counsel 
 Fax number: (713) 578-5002 
  
 BANK:                 WELLS FARGO BANK TEXAS, NATIONAL ASSOCIATION 
 MAC# T5056-012 
 1160 Dairy Ashford, Suite 160 
 Houston, TX 77079 
 Fax number: (281)
752-4579 
  
 or to such other address as any party may designate by written notice to the other party. Each such notice, request and demand
shall be deemed given or made as follows: (a) if sent by hand delivery, upon delivery; (b) if sent by mail, upon the earlier of the date of receipt or three (3) days after deposit in the U.S. mail, first class and postage prepaid; and (c) if sent by
telecopy, upon confirmation of facsimile transmission. 
  
 SECTION 7.3. COSTS, EXPENSES AND ATTORNEYS’ FEES.
Borrower shall pay to Bank immediately upon demand the full amount of all payments, advances, charges, costs and expenses, including reasonable attorneys’ fees (to include outside counsel fees and all allocated costs of Bank’s in-house
counsel to the extent permissible), expended or incurred by Bank in connection with (a) the negotiation and preparation of this Agreement and the other Loan Documents, Bank’s continued administration hereof and thereof, and the preparation of
any amendments and waivers hereto and thereto, (b) the enforcement of Bank’s rights and/or the collection of any amounts which become due to Bank under any of the Loan Documents, in the event of any default under any of the Loan Documents and
(c) the prosecution or defense of any action in any way related to any of the Loan Documents in the event of any default under any Loan Documents, including without limitation, any action for declaratory relief, whether incurred at the trial or
appellate level, in any other proceeding, and including any of the foregoing incurred in connection with any bankruptcy proceeding (including without limitation, any adversary proceeding, contested matter or motion brought by Bank or any other
person) relating to any Borrower. 
  
 SECTION 7.4. SUCCESSORS, ASSIGNMENT. This Agreement shall be binding upon and
inure to the benefit of the heirs, executors, administrators, legal representatives, successors and assigns of the parties; provided however, that Borrower may not assign or transfer its interest hereunder without Bank’s prior written consent.
Bank reserves the right to sell, assign, transfer, negotiate or grant participations in all or any part of, or any interest in, Bank’s rights and benefits under each of the Loan Documents. In connection therewith, Bank may disclose

  

 
 -9- 

 all documents and information which Bank now has or may hereafter acquire relating to any credit subject hereto, Borrower or its business, or
any collateral required hereunder provided that recipient executes a confidentiality agreement in form and substance reasonably acceptable to Borrower. 
  
 SECTION 7.5. AMENDMENT. This Agreement may be amended or modified only in writing signed by each party hereto. 
  
 SECTION 7.6. NO THIRD PARTY BENEFICIARIES. This Agreement is made and entered into for the sole protection and benefit of the parties hereto and their respective permitted successors and assigns, and
no other person or entity shall be a third party beneficiary of, or have any direct or indirect cause of action or claim in connection with, this Agreement or any other of the Loan Documents to which it is not a party. 
  
 SECTION 7.7. TIME. Time is of the essence of each and every provision of this Agreement and each other of the Loan Documents.

  
 SECTION 7.8. SEVERABILITY OF PROVISIONS. If any provision of this Agreement shall be prohibited by or invalid
under applicable law, such provision shall be ineffective only to the extent of such prohibition or invalidity without invalidating the remainder of such provision or any remaining provisions of this Agreement. 
  
 SECTION 7.9. COUNTERPARTS. This Agreement may be executed in any number of counterparts, each of which when executed and delivered shall
be deemed to be an original, and all of which when taken together shall constitute one and the same Agreement. 
  
 SECTION 7.10. GOVERNING LAW. This Agreement shall be governed by and construed in accordance with the laws of the State of Texas. 
  
 SECTION 7.11. SAVINGS CLAUSE. It is the intention of the parties to comply strictly with applicable usury laws. Accordingly, notwithstanding any provision to the contrary in the Loan Documents, in no
event shall any Loan Documents require the payment or permit the payment, taking, reserving, receiving, collection or charging of any sums constituting interest under applicable laws that exceed the maximum amount permitted by such laws, as the same
may be amended or modified from time to time (the “Maximum Rate”). If any such excess interest is called for, contracted for, charged, taken, reserved or received in connection with any Loan Documents, or in any communication by or any
other person to Borrower or any other person, or in the event that all or part of the principal or interest hereof or thereof shall be prepaid or accelerated, so that under any of such circumstances or under any other circumstance whatsoever the
amount of interest contracted for, charged, taken, reserved or received on the amount of principal actually outstanding from time to time under the Loan Documents shall exceed the Maximum Rate, then in such event it is agreed that: (i) the
provisions of this paragraph shall govern and control; (ii) neither Borrower nor any other person or entity now or hereafter liable for the payment of any Loan Documents shall be obligated to pay the amount of such interest to the extent it is in
excess of the Maximum Rate; (iii} any such excess interest which is or has been received by Bank, notwithstanding this paragraph, shall be credited against the then unpaid principal balance hereof or thereof, or if any of the Loan Documents has been
or would be paid in full by such credit, refunded to Borrower; and (iv) the provisions of each of the Loan Documents, and any other communication to Borrower, shall immediately be deemed reformed and such excess interest reduced, without the
necessity of executing any other document, to the Maximum Rate. The right to accelerate the maturity of the 
  

 
 -10- 

 Loan Documents does not include the right to accelerate, collect or charge unearned interest, but only such interest that has otherwise accrued
as of the date of acceleration. Without limiting the foregoing, all calculations of the rate of interest contracted for, charged, taken, reserved or received in connection with any of the Loan Documents which are made for the purpose of determining
whether such rate exceeds the Maximum Rate shall be made to the extent permitted by applicable laws by amortizing, prorating, allocating and spreading during the period of the full term of such Loan Documents, including all prior and subsequent
renewals and extensions hereof or thereof, all interest at any time contracted for, charged, taken, reserved or received by Bank. The terms of this paragraph shall be deemed to be incorporated into each of the other Loan Documents. 

 
 To the extent that either Chapter 303 or 306, or both, of the Texas Finance Code apply in determining the Maximum Rate, Bank
hereby elects to determine the applicable rate ceiling by using the weekly ceiling from time to time in effect, subject to Bank’s right subsequently to change such method in accordance with applicable law, as the same may be amended or modified
from time to time. 
  
 SECTION 7.12. RIGHT OF SETOFF; DEPOSIT ACCOUNTS. Upon and after the occurrence of an Event of
Default, (a) Borrower hereby authorizes Bank, at any time and from time to time, without notice, which is hereby expressly waived by each Borrower, and whether or not Bank shall have declared any credit subject hereto to be due and payable in
accordance with the terms hereof, to set off against, and to appropriate and apply to the payment of, Borrower’s obligations and liabilities under the Loan Documents (whether matured or unmatured, fixed or contingent, liquidated or
unliquidated), any and all amounts owing by Bank to Borrower (whether payable in U.S. dollars or any other currency, whether matured or unmatured, and in the case of deposits, whether general or special (except trust and escrow accounts), time or
demand and however evidenced), and (b) pending any such action, to the extent necessary, to hold such amounts as collateral to secure such obligations and liabilities and to return as unpaid for insufficient funds any and all checks and other items
drawn against any deposits so held as Bank, in its sole discretion, may elect. Borrower hereby grants to Bank a security interest in all deposits and accounts maintained with Bank and with any other financial institution to secure the payment of all
obligations and liabilities of Borrower to Bank under the Loan Documents. 
  
 SECTION 7.13. BUSINESS PURPOSE.
Borrower represents and warrants that each credit subject hereto is for a business, commercial, investment, agricultural or other similar purpose and not primarily for a personal, family or household use. 
  
 SECTION 7.14. ARBITRATION. 
  
 (a) Arbitration. The parties hereto agree, upon demand by any party, to submit to binding arbitration all claims, disputes and controversies between them (and their respective employees, officers, directors,
attorneys, and other agents), whether in tort, contract or otherwise arising out of or relating to in any way (i) the loan and related Loan Documents which are the subject of this Agreement and its negotiation, execution, collateralization,
administration, repayment, modification, extension, substitution, formation, inducement, enforcement, default or termination; or (ii) requests for additional credit. 
  
 (b) Governing Rules. Any arbitration proceeding will (i) be held in Houston, Texas in a location selected by the American Arbitration Association (“AAA”);
(ii) be governed by the Federal Arbitration Act (Title 9 of the United States Code), notwithstanding any conflicting 
  

 
 -11- 

 choice of law provision in any of the documents between the parties; and (iii) be conducted by the AAA, or such other administrator as the
parties shall mutually agree upon, in accordance with the AAA’s commercial dispute resolution procedures, unless the claim or counterclaim is at least $1,000,000.00 exclusive of claimed interest, arbitration fees and costs in which case the
arbitration shall be conducted in accordance with the AAA’s optional procedures for large, complex commercial disputes (the commercial dispute resolution procedures or the optional procedures for large, complex commercial disputes to be
referred to, as applicable, as the “Rules”). If there is any inconsistency between the terms hereof and the Rules, the terms and procedures set forth herein shall control. Any party who fails or refuses to submit to arbitration following a
demand by the other party shall bear all costs and expenses incurred by such other party in compelling arbitration of any dispute. Nothing contained herein shall be deemed to be a waiver by any party that is a bank of the protections afforded to it
under 12 U.S.C. §91 or any similar applicable state law. 
  
 (c) No Waiver of Provisional Remedies, Self-Help
and Foreclosure. The arbitration requirement does not limit the right of any party to (i) foreclose against real or personal property collateral; (ii) exercise self-help remedies relating to collateral or proceeds of collateral such as setoff or
repossession; or (iii) obtain provisional or ancillary remedies such as replevin, injunctive relief, attachment or the appointment of a receiver, before during or after the pendency of any arbitration proceeding. This exclusion does not constitute a
waiver of the right or obligation of any party to submit any dispute to arbitration or reference hereunder, including those arising from the exercise of the actions detailed in sections (i), (ii) and (iii) of this paragraph. 
  
 (d) Arbitrator Qualifications and Powers. Any arbitration proceeding shall be decided by majority vote of a panel of three
arbitrators; provided however, that all three arbitrators must actively participate in all hearings and deliberations. Each arbitrator will be a neutral attorney licensed in the State of Texas with a minimum of ten years experience in the
substantive law applicable to the subject matter of the dispute to be arbitrated. The arbitrators will determine whether or not an issue is arbitratable and will give effect to the statutes of limitation in determining any claim. In any arbitration
proceeding the arbitrator will decide (by documents only or with a hearing at the arbitrator’s discretion) any pre-hearing motions which are similar to motions to dismiss for failure to state a claim or motions for summary adjudication. The
arbitrators shall resolve all disputes in accordance with the substantive law of Texas and may grant any remedy or relief that a court of such state could order or grant within the scope hereof and such ancillary relief as is necessary to make
effective any award. The arbitrators shall also have the power to award recovery of all costs and fees, to impose sanctions and to take such other action as the arbitrators deems necessary to the same extent a judge could pursuant to the Federal
Rules of Civil Procedure, the Texas Rules of Civil Procedure or other applicable law. Judgment upon the award rendered by the arbitrator may be entered in any court having jurisdiction. Notwithstanding this agreement to arbitrate, either party may
request a court of competent jurisdiction to grant provisional remedies, including a temporary restraining order or preliminary injunction (1) to preserve the status quo pending resolution of the parties’ dispute, (2) to prevent conduct in
contravention of the terms of the parties’ Agreement, (3) to prevent the destruction of documents and other information or things related to the dispute, and/or (4) to prevent the transfer, dissipation, or hiding of assets. A request for such
provisional remedies to a judicial authority shall not be incompatible with this arbitration agreement or a waiver of a party’s right to arbitrate. 
  

 
 -12- 

  
 (e) Discovery. In any arbitration proceeding discovery will be permitted
in accordance with the Rules. All discovery shall be expressly limited to matters directly relevant to the dispute being arbitrated and must be completed no later than 20 days before the hearing date and within 180 days of the filing of the dispute
with the AAA. Any requests for an extension of the discovery periods, or any discovery disputes, will be subject to final determination by the arbitrator upon a showing that the request for discovery is essential for the party’s presentation
and that no alternative means for obtaining information is available. 
  
 (f) Class Proceedinqs and
Consolidations. The resolution of any dispute arising pursuant to the terms of this Agreement shall be determined by a separate arbitration proceeding and such dispute shall not be consolidated with other disputes or included in any class
proceeding. 
  
 (g) Payment Of Arbitration Costs And Fees. The arbitrator shall award all costs and expenses
of the arbitration proceeding. 
  
 (h) Miscellaneous. To the extent practicable, the AAA, the arbitrators and
the parties shall take all action required to conclude any arbitration proceeding within 180 days of the filing of the dispute with the AAA. No arbitrator or other party to an arbitration proceeding may disclose the existence, content or results
thereof, except for disclosures of information by a party required in the ordinary course of its business or by applicable law or regulation. If more than one agreement for arbitration by or between the parties potentially applies to a dispute, the
arbitration provision most directly related to the Loan Documents or the subject matter of the dispute shall control. This arbitration provision, as it may be amended from time to time, shall survive termination, amendment or expiration of any of
the Loan Documents or any relationship between the parties. 
  
 NOTICE: THIS DOCUMENT AND ALL OTHER DOCUMENTS RELATING TO THE
INDEBTEDNESS CONSTITUTE A WRITTEN LOAN AGREEMENT WHICH REPRESENTS THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL
AGREEMENTS BETWEEN THE PARTIES RELATING TO THE INDEBTEDNESS. 
  
 IN WITNESS WHEREOF, the parties hereto have
caused this Agreement to be executed as of the day and year first written above. 
  
 
	 TANOX, INC.
 	 	 WELLS FARGO BANK TEXAS,
 NATIONAL ASSOCIATION
 
	 
	 By: /s/    Jeffrey Organ
 
Jeffrey Organ
 Chief Operating Officer
 	 	 By: /s/    Tim Van Holland
 
Tim Van Holland
 Assistant Vice President
 

 

 
 -13-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00044-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00044-of-00352.parquet"}]]