EXHIBIT 10.3(G)
THE The CIT Group/
CIT Credit Finance
GROUP 0000 Xxxxxx xx xxx Xxxxxxxx
Xxx Xxxx, XX 00000
Tel: 000-000-0000
Fax: 000-000-0000
April 26, 1999
Pharmaceutical Formulations, Inc.
000 Xxxxxxxxxx Xxx.
Xxxxxx, Xxx Xxxxxx 00000
Re: Loan and Security Agreement, dated August 4, 1989, between The CIT
Group/Credit Finance, Inc., assignee of Fidelcor Business Credit Corpration
("Lender"), and Private Formulations, Inc., predecessor by merger of
Pharmaceutical Formulations, Inc., ("Borrower") (as amended, the "Loan
Agreement") and all related guaranties, security agreements, documents and
instruments (collectively, the "Financing Agreements")
Gentlemen:
You have requested and we have agreed to amend the Financing Agreements as set
forth below, effective as of the date hereof unless otherwise indicated.
Capitalized terms appearing below that are not defined below shall have the
meanings given in the Loan Agreement.
1. You have requested a temporary advance of $2,000,000 in excess of the
contractual ratios set forth in Section 10 of the Loan Agreement ("the
Overadvance"), through March 1, 2000. We have agreed to make the Overadvance
subject to the terms of this letter agreement. Borrower agrees that the
overadvance will be reduced to $1,500,000 by April 30, 1999 and further reduced
at the rate of $100,000 per month on the first business day of each month
commencing on October 1, 1999, continuing until February 1, 2000. Thereafter,
the Overadvance will be recaptured in full with a final reduction in the amount
of $1,000,000 to be made on March 1, 2000.
2. In consideration of the foregoing, Borrower agrees to pay to Lender a
transaction fee in the amount of $10,000 payable and fully earned upon the
execution of this amendment and which transaction fee shall be in addition to
all other fees set forth in the Loan Agreement.
Except as herein above specifically provided, the Loan Agreement, the Guaranty
and all of the other Financing Agreements shall remain unmodified and in full
force and effect.
Please signify your agreement with the foregoing by signing and returning to us
the enclosed copy of this letter.
Very truly yours,
THE CIT GROUP/CREDIT FINANCE, INC.
By: /S/
---------------------------
Title: VICE PRESIDENT
AGREED:
PHARMACEUTICAL FORMULATIONS, INC.
By: /S/ X. X. XXXXXX
---------------------------------
Title: SENIOR VICE PRESIDENT - CFO
