May 08, 2003
SIMULATIONS PLUS, INC.
1220 W Avenue J
Lancaster, CA 93534
RE: $500,000.00 PrimeLine
WELLS FARGO BANK, NATIONAL ASSOCIATION ("Bank") agrees to make available to
SIMULATIONS PLUS, INC. ("Borrower") a PrimeLine (the "Credit"). The Credit shall bear interest and be
repayable in accordance with the terms and conditions of the Agreement. The Agreement consists of (1) this
Confirmation Letter (this "Letter"), (2) the Business Lending Disclosure dated July 01, 2002 (the "Disclosure")
and (3) any Related Documents. All terms and conditions of the Disclosure and Related Documents are
incorporated herein by reference for all purposes. All capitalized terms not defined in this Letter are defined in the
PROMISE TO PAY. Borrower promises to pay to Bank, or order, the principal amount of $500,000.00, or so
much as may be advanced and outstanding from time to time, together with interest on the outstanding principal
balance. Borrower will pay Bank at Bank's address shown in this letter or at such other place as Bank may
designate in writing.
AVAILABILITY PERIOD. The Availability Period ends on May 10, 2004. During the Availability Period
Borrower may borrow, repay, and borrow again from time to time under this revolving line of credit up to the
FLOATING INTEREST RATE. Interest shall accrue on the unpaid outstanding principal balance of the Credit
at a floating rate per annurn equal to the sum of Wells Fargo Prime Rate (the "Index") and a margin of 1.500%.
The Wells Fargo Prime Rate is the Prime Rate set by Wells Fargo Bank, National Association from time to time
which serves as the basis upon which effective rates of interest are calculated for those loans making reference
thereto. Each change in the Index shall become effective on the date of each change in the Prime Rate. The
interest rate will change as and when the Index changes. The Index currently is 4.250% per annum.
INTEREST ACCRUAL BASIS. In