Exhibit 10 (h)
Amendment #7 to Loan Agreement
Dated September 9, 1997
Xxxxxxx Xxxxxx
00000 Xxxxxxx
Xxxxxxxx, Xxxxxxxx 00000
September 9, 1997
Xx. Xxxxxxx Xxxxxx
Lannett Company, Inc.
0000 xxxxx Xxxx
Xxxxxxxxxxxx, Xxxxxxxxxxxx 00000
Re: Loan Agreement between Xxxxxxx Xxxxxx ("Lender") and Lannett
Company, Inc. a Delaware Corporation ("Borrower") dated August 30, 1991, as
amended by Amendment #1 to Loan Agreement dated as of March 15, 1993, and by
letter agreements dated August 1, 1994, May 15, 1995, December 31, 1995, June
30, 1996, November 1, 1996 and September 9, 1997.
Dear Xxxxxxx:
This letter confirms that the Maturity Date (as defined in the Loan
Agreement) for the Revolving Credit Loan is extended to October 1, 1999 and
that the availability on the Revolving Credit Loan is extended to $4,250,000.
This letter also confirms that the Lender will not declare an Event of
Default under the Loan Agreement or any promissory note or other document
executed and delivered in connection with the Loan Agreement if borrower
fails to pay interest accrued from April 1, 1995 to June 30, 1996, and from
July 1, 1996 to June 30, 1998, respectively on the Revolving Credit Loan (as
defined in the Loan Agreement) or the Term Loan (as defined in the Loan
Agreement) in monthly installments as currently provided in the Loan
Agreement; provided that (i) Borrower pays such accrued interest in
twenty-four (24) equal monthly installments, commencing January 15, 1998 and
July 15, 1998 respectively and continuing on the fifteenth day of each month
thereafter until paid in full, and (ii) any such accrued interest shall in
any event be paid in full on the maturity date of the respective Loans.
Very Truly Yours
By: /s/ Xxxxxxx Xxxxxx
--------------
Xxxxxxx Xxxxxx
AGREED TO AND ACCEPTED:
LANNETT COMPANY, INC.
By: /s/ Xxxxxxx X. Xxxxxx
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Xxxxxxx X. Xxxxxx, Vice President - Finance and Treasurer
