Exhibit 10 (i)
Amendment #8 to Loan Agreement
Dated June 30, 1998
Xxxxxxx Xxxxxx
00000 Xxxxxxx
Xxxxxxxx, Xxxxxxxx 00000
June 30, 1998
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, September 9, 1997 and June 30, 1998.
Dear Xxxxxxx:
This letter confirms that the maturity date (as defined in the Loan
Agreement) for the Term Loan is extended to December 23, 1999. The Term Loan
is evidenced by the Amended and Restated Lannett Company, Inc. Convertible
Debenture dated December 23,1991. It is understood and agreed that Xx. Xxxxxx
(Lender) has the right, at any time prior to payment in full of the
Debenture, to convert all or any part of the outstanding indebtedness
represented by the Debenture and related accrued interest into shares of
Lannett Company Inc.'s (Borrower's) common stock, on the terms and conditions
set forth in the Debenture. Consequently, by extending the maturity date of
the Term Loan, Borrower has extended the period which Lender may exercise
such conversion rights.
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, from July
1, 1996 to June 30, 1997, from July 1, 1997 to June 30, 1998 and from July 1,
1998 to June 30, 1999 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 the following manner.
Accrued interest on the Revolving Credit Loan from April 1, 1995 to June 30,
1996 is payable in six equal monthly installments of $52,590, commencing
January 15, 1999 and continuing on the fifteenth day of each month thereafter
until paid in full. Accrued interest from July 1, 1996 to June 30, 1997 is
payable in six equal monthly installments of $57,188, commencing April 15,
1999 and continuing on the fifteenth day of each month thereafter, until paid
in full. Accrued interest from July 1, 1997 to June 30, 1998 is payable in
six equal monthly installments of $63,554, commencing July 15, 1999 and
continuing on the fifteenth day of each month thereafter, with the balance
due October 1, 1999. Interest accrued on the outstanding principal balance
from and after July 1, 1998 is payable in twelve equal monthly
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installments, commencing July 15, 1999 and continuing on the fifteenth day of
each month thereafter with the balance due October 1, 1999.
Accrued interest from April 1, 1995 to June 30, 1996 is payable in six equal
monthly installments of $28,500, commencing January 15, 1999 and continuing
on the fifteenth day of each month thereafter until paid in full. Accrued
interest from July 1, 1996 to June 30, 1997 is payable in six equal monthly
installments of $30,417, commencing April 15, 1999 and continuing on the
fifteenth day of each month thereafter, until paid in full. Accrued interest
from July 1, 1997 to June 30, 1998 is payable in six equal monthly
installments of $30,417, commencing July 15, 1999 and continuing on the
fifteenth day of each month thereafter, until paid in full. Interest accrued
on the outstanding principal balance from and after July 1, 1998 is payable
in twelve equal monthly installments, commencing July 15, 1999 and continuing
on the fifteenth day of each month thereafter with the balance due December
23, 1999.
Very Truly Yours
By: /s/ Xxxxxxx Xxxxxx
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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
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