Maxim agrees to forgive $2.8 million loan

By Kimberly N. Alleyne

Stroudsburg, Pa., Aug. 24 - Maxim Pharmaceuticals Inc. said it agreed to forgive a $2.8 million loan to former chairman and chief executive officer Larry G. Stambaugh.

The loan was made under a full recourse, interest bearing, secured revolving promissory note from Stambaugh Dec. 8, 2000.

The company decided that due to its inability to collect on the loan and in the interests of stockholders and creditors, it would be best to forgive the debt.

The agreement also prevents Stambaugh from making any further claims against Maxim and releases any present claims.

The loan amount had been written down to $264,000 as of June 30. Stambaugh forfeited all shares of common stock and 1.5 million options to purchase Maxim common stock.

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