EXHIBIT 10.1

SEVENTH AMENDMENT TO CREDIT AGREEMENT

THIS SEVENTH AMENDMENT TO CREDIT AGREEMENT (this “Amendment”), dated as of
September 30, 2009, is by and among CHATTEM, INC., a Tennessee corporation (the
“Borrower”), each of the Borrower’s Domestic Subsidiaries (individually a
“Guarantor” and collectively with the Borrower, the “Credit Parties”), the
Lenders party hereto and BANK OF AMERICA, N.A., as agent for the Lenders (in
such capacity, the “Agent”).

W I T N E S S E T H

WHEREAS, the Credit Parties, the Lenders, and the Agent are parties to that
certain Credit Agreement dated as of February 26, 2004 (as amended from time to
time, the “Credit Agreement”);

WHEREAS, the Borrower has requested that the Lenders amend the Credit Agreement;
and

WHEREAS, the Lenders have agreed to amend the Credit Agreement on the terms and
conditions hereinafter set forth.

NOW, THEREFORE, in consideration of the agreements hereinafter set forth, and
for other good and valuable consideration, the receipt and adequacy of which are
hereby acknowledged, the parties hereto agree as follows:

PART I
DEFINITIONS

Unless otherwise defined herein or the context otherwise requires, terms used in
this Amendment, including its preamble and recitals, have the meanings provided
in the Credit Agreement.

PART II
AMENDMENTS TO CREDIT AGREEMENT

SUBPART 2.1 The following definitions are hereby added to Section 1.1 of the
Credit Agreement in the appropriate alphabetical order to read as follows:

“Extending Revolving Lenders” means those Lenders agreeing to extend their
Revolving Commitments to January 2, 2013 pursuant to the Seventh Amendment, and
any of their successors and permitted assigns of such Revolving Commitments in
accordance with Section 11.3.  The Extending Revolving Lenders as of the Seventh
Amendment Effective Date are identified on Schedule 1.1(a).  The term “Extending
Revolving Lender” shall also include any Lender agreeing to become an Extending
Revolving Lender pursuant to an Assignment and Assumption with a Non-Extending
Revolving Lender as contemplated by Section 11.3(i).

“IDB” means the Industrial Development Board of the City of Chattanooga,
Tennessee.

“Impacted Lender” means any Lender as to which (a) the Issuing Lender has a good
faith belief that the Lender has defaulted in fulfilling its obligations under
one or more other syndicated credit facilities or (b) an entity that controls
the Lender has been deemed insolvent or become subject to a bankruptcy or other
similar proceeding.

“Net Loss” means, for any period, the net loss after taxes for such period of
the Borrower and its Subsidiaries on a consolidated basis, as determined in
accordance with GAAP.

 
 

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“Non-Extending Revolving Lenders” means those Lenders whose Revolving
Commitments terminate on November 15, 2010 and any of their successors and
permitted assigns of such Revolving Commitments in accordance with Section
11.3.  The Non-Extending Lenders as of the Seventh Amendment Effective Date are
identified on Schedule 1.1(a) hereto.

“PILOT Program Property” means that certain “ACT plant” of the Borrower located
at 3350 Broad Street, Chattanooga, Tennessee 37408.

“PILOT Program Sale and Leaseback Transaction” means the sale and leaseback
transaction entered into by the Borrower and the IDB with respect to the PILOT
Program Property.

“Seventh Amendment” means that certain Seventh Amendment to Credit Agreement by
and among the Borrower, the Guarantors, the Lenders party thereto and the Agent
dated as of the Seventh Amendment Effective Date.

“Seventh Amendment Effective Date” means September 30, 2009.

SUBPART 2.2 The definition of “Applicable Percentage” in Section 1.1 of the
Credit Agreement is hereby amended to read as follows:

“Applicable Percentage” means for purposes of calculating (a) the applicable
interest rate for any day for Revolving Loans having a Termination Date of
January 2, 2013, the applicable rate for any day for the Letter of Credit Fees
with respect to any Lender’s Revolving Commitment that terminates on January 2,
2013 and the applicable rate for any day for the Unused Fee with respect to any
Lender’s Revolving Commitment that terminates on January 2, 2013, the
appropriate applicable percentages corresponding to the Leverage Ratio in effect
as of the most recent Calculation Date as shown below:

Pricing
Level
Leverage
Ratio
Applicable
Percentage For
Eurodollar Loans
and Letter of
Credit Fee
Applicable
Percentage
For Base
Rate
Loans
 
 
Applicable
Percentage for
Unused Fees
I
<1.50 to 1.0
2.25%
1.25%
0.375%
II
>1.50 to 1.0 but < 2.50 to 1.0
2.50%
1.50%
0.500%
III
> 2.50 to 1.0
but < 3.50 to 1.0
2.50%
1.50%
0.500%
IV
> 3.50 to 1.0
2.75%
1.75%
0.500%

(b) the applicable interest rate for any day for Revolving Loans having a
Termination Date of November 15, 2010, the applicable rate for any day for the
Letter of Credit Fees with respect to any Lender’s Revolving Commitment that
terminates on November 15, 2010 and the applicable rate for any day for the
Unused Fee with respect to any Lender’s Revolving Commitment that terminates on
November 15, 2010, the appropriate applicable percentages corresponding to the
Leverage Ratio in effect as of the most recent Calculation Date as shown below:

 
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Pricing
Level
Leverage
Ratio
Applicable Percentage For Eurodollar Loans and Letter of  Credit Fee
 
Applicable Percentage For Base Rate
Loans
 
 
 
Applicable Percentage for
Unused Fees
I
<1.50 to 1.0
0.875%
0.000%
0.200%
II
>1.50 to 1.0 but < 2.50 to 1.0
1.000%
0.000%
0.250%
III
> 2.50 to 1.0
but < 3.50 to 1.0
1.250%
0.000%
0.300%
IV
> 3.50 to 1.0
1.500%
0.000%
0.350%

(c) the applicable interest rate for any day for the Term Loan, a percentage per
annum equal to (i) 1.75% for Eurodollar Loans and (ii) 0.75% for Base Rate Loans
and (d) the applicable interest rate for any day for the Incremental Term Loan,
the percentage(s) per annum set forth in the Incremental Term Loan Joinder
Agreement.  The Applicable Percentage for Revolving Loans, Letter of Credit Fees
and the Unused Fee shall be determined and adjusted quarterly on the date (each
a “Calculation Date”) five Business Days after the date by which the Borrower is
required to provide the officer’s certificate in accordance with the provisions
of Section 7.1(c); provided, however, if the Borrower fails to provide the
officer’s certificate required by Section 7.1(c) on or before the most recent
Calculation Date or fails to deliver a copy of such officer’s certificate to the
Agent as required by Section 7.1(c), the Applicable Percentage for Revolving
Loans, Letter of Credit Fees and the Unused Fee from such Calculation Date shall
be based on Pricing Level IV in the applicable pricing grid above until such
time that an appropriate officer’s certificate is provided whereupon the
Applicable Percentage shall be determined by the then current
Leverage Ratio.  Each Applicable Percentage for Revolving Loans, Letter of
Credit Fees and the Unused Fee shall be effective from one Calculation Date
until the next Calculation Date.  Any adjustment in the Applicable Percentage
shall be applicable to all existing Revolving Loans and Letters of Credit as
well as any new Revolving Loans or Letters of Credit made or issued.  The
Applicable Percentage in effect from the Seventh Amendment Effective Date
through the first Business Day immediately following the date the officer’s
certificate is delivered pursuant to Section 7.1(c)(i) for the fiscal quarter
ending August 31, 2009 shall be determined based upon Pricing Level III in the
applicable pricing grid set forth above.  Notwithstanding anything to the
contrary contained in this definition, the determination of the Applicable
Percentage for any period shall be subject to the provisions of Section 3.6(c).

SUBPART 2.3 The definition of “Base Rate” in Section 1.1 of the Credit Agreement
is hereby amended to read as follows:

“Base Rate” means for any day a fluctuating rate per annum equal to the highest
of (a) the Federal Funds Rate plus 1/2 of 1%, (b) the rate of interest in effect
for such day as publicly announced from time to time by Bank of America as its
“prime rate” and (c) the Eurodollar Base Rate plus 1.00%.  The “prime rate” is a
rate set by Bank of America based upon various factors including Bank of
America’s costs and desired return, general economic conditions and other
factors, and is used as a reference point for pricing some loans, which may be
priced at, above, or below such announced rate.  Any change in the “prime rate”
announced by Bank of America shall take effect at the opening of business on the
day specified in the public announcement of such change.

 
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SUBPART 2.4 The definition of “Eligible Assignee” in Section 1.1 of the Credit
Agreement is hereby amended to read as follows:

“Eligible Assignee” means any Person that meets the requirements to be an
assignee under Section 11.3(b)(v), (vi) and (vii) (subject to such consents, if
any, as may be required under Section 11.3(b)(iii)).

SUBPART 2.5 The definition of “Eurodollar Base Rate” in Section 1.1 of the
Credit Agreement is hereby amended to read as follows:

“Eurodollar Base Rate” means:

(a) for any Interest Period with respect to a Eurodollar Rate Loan, the rate per
annum equal to the British Bankers Association LIBOR Rate (“BBA LIBOR”), as
published by Reuters (or other commercially available source providing
quotations of BBA LIBOR as designated by the Agent from time to time) at
approximately 11:00 a.m., London time, two Business Days prior to the
commencement of such Interest Period, for Dollar deposits (for delivery on the
first day of such Interest Period) with a term equivalent to such Interest
Period.  If such rate is not available at such time for any reason, then the
“Eurodollar Rate” for such Interest Period shall be the rate per annum
determined by the Agent to be the rate at which deposits in Dollars for delivery
on the first day of such Interest Period in same day funds in the approximate
amount of the Eurodollar Rate Loan being made, continued or converted by Bank of
America and with a term equivalent to such Interest Period would be offered by
Bank of America’s London Branch to major banks in the London interbank
eurodollar market at their request at approximately 11:00 a.m. (London time) two
Business Days prior to the commencement of such Interest Period; and

(b) for any interest rate calculation with respect to a Base Rate Loan, the rate
per annum equal to (i) BBA LIBOR, at approximately 11:00 a.m. London time two
Business Days prior to the date of determination (provided that if such day is
not a Business Day, the next preceding Business Day) for Dollar deposits being
delivered in the London interbank market for a term of one month commencing that
day or (ii) if such published rate is not available at such time for any reason,
the rate per annum determined by the Agent to be the rate at which deposits in
Dollars for delivery on the date of determination in same day funds in the
approximate amount of the Base Rate Loan being made, continued or converted by
Bank of America and with a term equal to one month would be offered by Bank of
America’s London Branch to major banks in the London intrabank eurodollar market
at their request at approximately 11:00 a.m., London time on the date of
determination.

SUBPART 2.6 The definition of “Interest Payment Date” in Section 1.1 of the
Credit Agreement is hereby amended to read as follows:

“Interest Payment Date” means (a) as to Base Rate Loans and Swingline Loans, the
last Business Day of each fiscal quarter of the Borrower and on the applicable
Termination Date, the Term Loan Maturity Date and the Incremental Term Loan
Maturity Date (if any) and (b) as to Eurodollar Loans, on the last day of each
applicable Interest Period and on the applicable Termination Date, the Term Loan
Maturity Date and the Incremental Term Loan Maturity Date (if any) and in
addition if the Interest Period for a Eurodollar Loan is more than 3 months,
then at 3 month intervals beginning on the date 3 months from the beginning of
the Interest Period.

SUBPART 2.7 Subclause (b) in the definition of “Interest Period” in Section 1.1
of the Credit Agreement is hereby amended to read as follows:

 
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(b) no Interest Period with respect to any Revolving Loan shall extend beyond
the applicable Termination Date with respect to such Revolving Loan,

SUBPART 2.8 The definition of “Letter of Credit Expiration Date” in Section 1.1
of the Credit Agreement is hereby amended to read as follows:

“Letter of Credit Expiration Date” means the day that is thirty days prior to
the applicable Termination Date (or, if such day is not a Business Day, the next
preceding Business Day).

SUBPART 2.9 The definition of “Permitted Liens” in Section 1.1 of the Credit
Agreement is hereby amended to add the following new clause (l) at the end
thereof to read as follows:

and (l) Liens, if any, in favor of the Issuing Lender and/or the Swing Line
Lender to cash collateralize or otherwise secure the obligations of a Defaulting
Lender or an Impacted Lender to fund risk participations hereunder.

SUBPART 2.10 The definition of “Revolving Commitment” in Section 1.1 of the
Credit Agreement is hereby amended to read as follows:

“Revolving Commitment” means, with respect to each Lender, the commitment of
such Lender in an aggregate principal amount at any time outstanding not to
exceed the amount set forth opposite such Lender’s name on Schedule 1.1(a), or
in the Assignment and Assumption pursuant to which such Lender becomes a party
hereto, as applicable, as such amount may be adjusted from time to time in
accordance with this Agreement, (i) to make Revolving Loans in accordance with
the provisions of Section 2.1(a), (ii) to purchase participation interests in
Letters of Credit in accordance with the provisions of Section 2.2 and (iii) to
purchase participation interests in Swingline Loans in accordance with the
provisions of Section 2.3.

SUBPART 2.11 The definition of “Revolving Committed Amount” in Section 1.1 of
the Credit Agreement is hereby amended to read as follows:

“Revolving Committed Amount” means the Revolving Commitments of all of the
Lenders.  The aggregate principal amount of the Revolving Commitments in effect
on the Seventh Amendment Effective Date is ONE HUNDRED MILLION DOLLARS
($100,000,000); provided such amount may be reduced pursuant to the terms
hereof; provided further that such amount may be increased to up to ONE HUNDRED
FIFTY MILLION DOLLARS ($150,000,000) pursuant to Section 2.1(g).

SUBPART 2.12 The definition of “Termination Date” in Section 1.1 of the Credit
Agreement is hereby amended to read as follows:

“Termination Date” means (a) with respect to the Revolving Commitment of each
Non-Extending Revolving Lender, November 15, 2010 and (b) with respect to the
Revolving Commitment of each Extending Revolver Lender, January 2, 2013.

SUBPART 2.13 The definition of “Treasury Management Agreement” in Section 1.1 of
the Credit Agreement is hereby amended to read as follows:

“Treasury Management Agreement” means any agreement governing the provision of
treasury or cash management services, including deposit accounts, overdraft,
credit or debit card,
 
 
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funds transfer, automated clearinghouse, zero balance accounts, returned check
concentration, controlled disbursement, lockbox, account reconciliation and
reporting and trade finance services and other cash management services.

SUBPART 2.14 Section 2.1(a) of the Credit Agreement is hereby amended to read as
follows:

(a)           Revolving Commitment.   Subject to the terms and conditions set
forth herein, each Lender severally agrees to make revolving loans (each a
“Revolving Loan” and collectively the “Revolving Loans”) to the Borrower, in
Dollars, at any time and from time to time, during the period from and including
the Closing Date to but not including the applicable Termination Date (or such
earlier date if the applicable Revolving Commitments have been terminated as
provided herein); provided, however, that (i) the sum of the aggregate amount of
Revolving Loans outstanding plus the aggregate amount of LOC Obligations
outstanding plus the aggregate amount of Swingline Loans outstanding shall not
exceed the aggregate Revolving Commitments then in effect, and (ii) with respect
to each individual Lender, such Lender’s outstanding Revolving Loans shall not
exceed such Lender’s Commitment Percentage of the aggregate Revolving
Commitments then in effect.

SUBPART 2.15 Section 2.2(a)(ii) of the Credit Agreement is hereby amended to
read as follows:

(ii)           The Issuing Lender shall not issue any Letter of Credit if:

(A)            the expiry date of such requested Letter of Credit would occur
more than twelve months after the date of issuance, unless Lenders holding more
than fifty percent (50%) of the Revolving Commitments have approved such expiry
date; or

(B)           the expiry date of such requested Letter of Credit would occur
after the applicable Letter of Credit Expiration Date, unless all the applicable
Lenders with a Revolving Commitment have approved such expiry date.

SUBPART 2.16 Section 2.2(a)(iii)(F) of the Credit Agreement is hereby amended to
read as follows:

(F)           a default of any Lender’s obligations to fund under Section 2.2(c)
exists or any Lender is at such time a Defaulting Lender or an Impacted Lender
hereunder, unless the Issuing Lender has entered into satisfactory arrangements
with the Borrower or such Lender to eliminate the Issuing Lender’s risk with
respect to such Lender.

SUBPART 2.17 The following subsection (vii) is hereby added at the end of
Section 2.2(c) of the Credit Agreement to read as follows:

(vii)           It is understood and agreed that with respect to any Letters of
Credit having an expiry date later than November 10, 2010, only the Extending
Revolving Lenders shall have a participation interest in such Letters of Credit
(each such participation interest to be based on such Extending Revolver
Lender’s Commitment Percentage of only those Revolving Commitments with a
Termination Date of January 2, 2013).

SUBPART 2.18 The first sentence in Section 2.3(a) of the Credit Agreement is
hereby amended to read as follows:

 
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Subject to the terms and conditions set forth herein, the Swingline Lender may,
in its discretion and in reliance upon the agreements of the other Lenders set
forth in this Section 2.3, make swingline loans (each a “Swingline Loan” and
collectively the “Swingline Loans”) to the Borrower, in Dollars, at any time and
from time to time, during the period from and including the Closing Date to but
not including the applicable Termination Date (or such earlier date if the
Revolving Committed Amount has been terminated as provided herein) in an
aggregate amount not to exceed at any time outstanding the amount of the
Swingline Committed Amount, notwithstanding the fact that such Swingline Loans,
when aggregated with the Commitment Percentages of the outstanding principal
amount of Revolving Loans and LOC Obligations of the Swingline Lender in its
capacity as a Lender of Revolving Loans, may exceed the amount of such Lender’s
Revolving Commitment; provided, however, that (i) the sum of the aggregate
amount of Revolving Loans outstanding plus the aggregate amount of LOC
Obligations outstanding plus the aggregate amount of Swingline Loans outstanding
shall not exceed the Revolving Committed Amount, and (ii) the outstanding
Swingline Loans shall not exceed the Swingline Committed Amount, and provided,
further, that the Borrower shall not use the proceeds of any Swingline Loan to
refinance any outstanding Swingline Loan.

SUBPART 2.19 Section 3.4(a) of the Credit Agreement is hereby amended to read as
follows:

(a)           Unused Fees.  In consideration of the Revolving Commitments of the
Lenders hereunder, the Borrower agrees to pay to the Agent for the account of
each Lender with a Revolving Commitment a fee (the “Unused Fee”) computed at a
per annum rate on the Unused Revolving Committed Amount during the Unused Fee
Calculation Period (hereinafter defined) equal to the Applicable Percentage for
Unused Fees then in effect; provided, that (i) no Unused Fee shall accrue on the
Revolving Commitment of a Defaulting Lender so long as such Lender shall be a
Defaulting Lender and (ii) any Unused Fee accrued with respect to the Revolving
Commitment of a Defaulting Lender during the period prior to the time such
Lender became a Defaulting Lender and unpaid at such time shall not be payable
by the Borrower so long as such Lender shall be a Defaulting Lender.  The Unused
Fee shall commence to accrue on the Closing Date and shall be due and payable in
arrears on the last business day of each March, June, September and December
(and any date that the Revolving Committed Amount is reduced as provided in
Section 2.1(d) and the applicable Termination Date) for the immediately
preceding quarter (or portion thereof) (each such quarter or portion thereof for
which the Unused Fee is payable hereunder being herein referred to as an “Unused
Fee Calculation Period”), beginning with the first of such dates to occur after
the Closing Date.

SUBPART 2.20 Section 3.5(a) of the Credit Agreement is each hereby amended to
read as follows:

(a)           Revolving Loans.  (i) On November 15, 2010, the entire outstanding
principal balance of all Revolving Loans having a Termination Date of November
15, 2010, together with accrued but unpaid interest and all other sums owing
with respect thereto, shall be due and payable in full, unless accelerated
sooner pursuant to Section 9, and (ii) on January 2, 2013, the entire
outstanding principal balance of all Revolving Loans having a Termination Date
of January 2, 2013, together with accrued but unpaid interest and all other sums
owing with respect thereto, shall be due and payable in full, unless accelerated
sooner pursuant to Section 9.

SUBPART 2.21 The first sentence of Section 3.6(a) of the Credit Agreement is
hereby amended to read as follows:

 
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Except for Base Rate Loans, in which case interest shall be computed on the
basis of a 365 or 366 day year as the case may be, all computations of interest
and fees hereunder shall be made on the basis of the actual number of days
elapsed over a year of 360 days.

SUBPART 2.22 Section 3.11 of the Credit Agreement is hereby amended to read as
follows:

3.11           Inability To Determine Interest Rate.

If prior to the first day of any Interest Period, the Agent shall have
determined (which determination shall be conclusive and binding upon the
Borrower) that, by reason of circumstances affecting the relevant market,
adequate and reasonable means do not exist for ascertaining the Interest Period
with respect to a proposed Eurodollar Rate Loan or in connection with a Base
Rate Loan, the Agent shall promptly give telecopy or telephonic notice thereof
to the Borrower and the Lenders.  If such notice is given (a) any Eurodollar
Loans requested to be made on the first day of such Interest Period shall be
made as Base Rate Loans as to which the interest rate is not determined with
reference to the Eurodollar Rate, (b) any Loans that were to have been converted
on the first day of such Interest Period to or continued as Eurodollar Loans
shall be converted to or continued as Base Rate Loans as to which the interest
rate is not determined with reference to the Eurodollar Rate and (c) any
outstanding Eurodollar Loans shall be converted, on the first day of such
Interest Period, to Base Rate Loans as to which the interest rate is not
determined with reference to the Eurodollar Rate.  Until such notice has been
withdrawn by the Agent, no further Eurodollar Loans or Base Rate Loans as to
which the interest rate is determined with reference to the Eurodollar Rate
shall be made or continued as such, nor shall the Borrower have the right to
convert Base Rate Loans to Eurodollar Loans.

SUBPART 2.23 Section 3.12 of the Credit Agreement is hereby amended to read as
follows:

3.12           Illegality.

Notwithstanding any other provision herein, if the adoption of or any change in
any Requirement of Law or in the interpretation or application thereof occurring
after the Closing Date shall make it unlawful for any Lender to make or maintain
Eurodollar Loans, or to determine or charge interest rates based upon the
Eurodollar Rate, as contemplated by this Credit Agreement, (a) such Lender shall
promptly give written notice of such circumstances to the Borrower and the Agent
(which notice shall be withdrawn whenever such circumstances no longer exist),
(b) the commitment of such Lender hereunder to make Eurodollar Loans, continue
Eurodollar Loans as such and convert Base Rate Loans to Eurodollar Loans or, if
such notice relates to the unlawfulness or asserted unlawfulness of charging
interest based on the Eurodollar Rate, to make Base Rate Loans as to which the
interest rate is determined with reference to the Eurodollar Rate shall
forthwith be canceled and, until such time as it shall no longer be unlawful for
such Lender to make or maintain Eurodollar Loans or Base Rate Loans as to which
the interest is determined with reference to the Eurodollar Rate, such Lender
shall then have a commitment only to make a Base Rate Loan as to which the rate
of interest is not determined with reference to the Eurodollar Rate when a
Eurodollar Loan is requested and (c) such Lender’s Loans then outstanding as
Eurodollar Loans or Base Rate Loans as to which the interest rate is determined
with reference to the Eurodollar Rate, if any, shall be converted automatically
to Base Rate Loans as to which the rate of interest is not determined with
reference to the Eurodollar Rate on the respective last days or the then current
Interest Periods with respect to such Loans or within such earlier period as
required by law.  If any such conversion of a Eurodollar Loan or a Base Rate
Loan as to which the interest rate is determined with reference to the
Eurodollar Rate occurs on a day which is not the last day of the then current
Interest Period with respect thereto,
 
 
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the Borrower shall pay to such Lender such amounts, if any, as may be required
pursuant to Section 3.15.  Notwithstanding the foregoing and despite the
illegality for such a Lender to make, maintain or fund Eurodollar Rate Loans or
Base Rate Loans as to which the interest rate is determined with reference to
the Eurodollar Base Rate, that Lender shall remain committed to make Base Rate
Loans and shall be entitled to recover interest at the Base Rate.  Upon any such
prepayment or conversion, the Borrower shall also pay accrued interest on the
amount so prepaid or converted.

SUBPART 2.24 The language preceding the first proviso in Section 3.16 of the
Credit Agreement is hereby amended to read as follows:

If (a) any Lender delivers a notice to the Borrower pursuant to Sections 3.10,
3.13 or 3.14, (b) a Lender (a “Non-Consenting Lender”) does not consent to a
proposed change, waiver, discharge or termination with respect to any Credit
Document that has been approved by the Required Lenders as provided in Section
11.6 or (c) any Lender is a Defaulting Lender, then the Borrower shall have the
right, if no Default or Event of Default then exists, to either (i) replace such
Lender (the “Replaced Lender”) with one or more additional banks or financial
institutions (collectively, the “Replacement Lender”),

SUBPART 2.25 The following subsection (o) is hereby added at the end of Section
7.1 of the Credit Agreement to read as follows:

(o)           PILOT Program.  Promptly upon the consummation of any PILOT
Program Sale and Leaseback Transaction, the Borrower shall provide copies of the
documentation governing such PILOT Program Sale and Leaseback Transaction to the
Agent.

SUBPART 2.26 Subclause (d) in Section 8.5 of the Credit Agreement is hereby
amended to read as follows:

(d) sales of product lines (or the right to produce a consumer product or
products) provided that (i) the dispositions permitted under this subparagraph
(d) during any fiscal year shall be limited to product lines (or the right to
produce a consumer product or products) having aggregate sales for the four
fiscal quarter period ending immediately preceding the sale that result in
EBITDA for such four fiscal quarter period in an aggregate amount not exceeding
ten percent (10%) of EBITDA for such four fiscal quarter period and (ii) the
Credit Parties shall have delivered to the Agent a Pro Forma Compliance
Certificate demonstrating that after giving effect to any such disposition on a
Pro Forma Basis, the Credit Parties and their Subsidiaries would have been in
compliance with all the financial covenants set forth in Section 7.12,

SUBPART 2.27 Section 8.7 of the Credit Agreement is hereby amended to read as
follows:

8.7           Restricted Payments.

No Credit Party will, nor will it permit any of its Subsidiaries to, directly or
indirectly,  (a) declare or pay any dividends (whether cash or otherwise) or
make any other distribution upon any shares of its Capital Stock of any class
(other than dividends or distributions payable in Capital Stock) or (b)
purchase, redeem or otherwise acquire or retire or make any provisions for
redemption, acquisition or retirement of any shares of its Capital Stock of any
class or any warrants or options to purchase any such shares (other than the
purchase, redemption, acquisition or retirement of any shares of Capital Stock
or any warrants or options to purchase any such shares with shares of Capital
Stock) (any such declaration, payment, distribution, purchase,
 
 
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redemption or other acquisition, a “Restricted Payment”); provided, however, (i)
the Subsidiaries of the Borrower may pay dividends to the Borrower and (ii) the
Borrower may purchase, redeem, acquire or retire shares of its Capital Stock of
any class or any warrants or options to purchase any such shares of its Capital
Stock occurring subsequent to the Seventh Amendment Effective Date in an
aggregate amount (on a cumulative basis) not to exceed an amount equal to (A)
$55 million plus (B) an amount equal to 50% of Net Income (excluding any net
gain or loss resulting from an Asset Disposition as determined in accordance
with GAAP) for any fiscal quarter ending subsequent to the Seventh Amendment
Effective Date (or less an amount equal to 100% of Net Loss (excluding any net
gain or loss resulting from an Asset Disposition as determined in accordance
with GAAP) for any fiscal quarter ending subsequent to the Seventh Amendment
Effective Date); provided, that (x) before and after giving effect to any such
repurchase or retirement, no Default or Event of Default exists and (y) after
giving effect to any such repurchase or retirement, the Borrower shall have at
least twenty percent (20%) of availability under the Revolving Committed
Amount.  For the avoidance of doubt, the parties hereto agree that (a) nothing
contained in this Section 8.7 shall prohibit the Borrower from using $32,042,500
of the proceeds from the issuance of the Convertible Notes to fund a convertible
note hedge transaction with an affiliate of Merrill Lynch & Co. on the date of
the issuance of the Convertible Notes, which transaction is designed to offset
the Borrower’s exposure to potential dilution of its common stock upon the
conversion of the Convertible Notes and (b) the use of such proceeds as
described above shall not be considered a Restricted Payment.

SUBPART 2.28 Section 8.11 of the Credit Agreement is hereby amended to read as
follows:

8.11           Subordinated Debt.

Notwithstanding Section 8.10, no Credit Party will (a) make or offer to make any
principal payments with respect to the Subordinated Debt, (b) redeem or offer to
redeem any of the Subordinated Debt or (c) deposit any funds intended to
discharge or defease any or all of the Subordinated Debt; provided, however, the
Borrower may redeem or prepay the Subordinated Debt; provided, that (i) no
Default or Event of Default exists before or after giving effect to any such
redemption or prepayment and (ii) after giving effect to any such redemption or
prepayment, the Borrower shall have at least twenty percent (20%) of
availability under the Revolving Committed Amount.  The Subordinated Debt or the
Subordinated Indenture may not be amended or modified in any material manner
without the prior written consent of the Required Lenders, it being specifically
understood and agreed that no amendment to Article Four or Article Twelve of the
Subordinated Indenture shall be made without the prior written consent of the
Required Lenders.

SUBPART 2.29 Section 8.13 of the Credit Agreement is hereby amended to read as
follows:

8.13           Sale Leasebacks.

Other than the PILOT Program Sale and Leaseback Transaction, no Credit Party
will, nor will it permit any of its Subsidiaries to, directly or indirectly
become or remain liable as lessee or as guarantor or other surety with respect
to any lease, of any property (whether real or personal or mixed), whether now
owned or hereafter acquired, (a) which such Credit Party or Subsidiary has sold
or transferred or is to sell or transfer to any other Person other than a Credit
Party or (b) which such Credit Party or Subsidiary intends to use for
substantially the same purpose as any other property which has been sold or is
to be sold or transferred by such Credit Party or Subsidiary to any Person in
connection with such lease.

SUBPART 2.30 Section 8.14 of the Credit Agreement is hereby amended to read as
follows:

 
- 10 -

--------------------------------------------------------------------------------

 
8.14           Negative Pledges.

None of the Credit Parties will, nor will it permit any of its Subsidiaries to,
enter into, assume or become subject to any agreement prohibiting or otherwise
restricting the creation or assumption of any Lien upon its properties or
assets, whether now owned or hereafter acquired, or requiring the grant of any
security for such obligation if security is given for some other obligation,
except for (a) as set forth in Section 4.12 of the Subordinated Indenture and
(b) lien restrictions of IDB with respect to the PILOT Program Property provided
that any such lien restrictions of IDB provide for an exception for a first
priority lien in favor of the Agent for the benefit of the holders of the Credit
Party Obligations in the PILOT Program Property.

SUBPART 2.31 Section 8.15 of the Credit Agreement is hereby amended to read as
follows:

8.15           Capital Expenditures.

The Credit Parties and their Subsidiaries will not make Capital Expenditures, in
any fiscal year, that would exceed $10,000,000 in the aggregate plus up to
$5,000,000 of the unused amount available for Capital Expenditures under this
Section 8.15 for the immediately preceding fiscal year (excluding any carry
forward available from any prior fiscal year other than the immediately
preceding fiscal year); provided, however, in addition to the maximum annual
Capital Expenditures permitted by the preceding clause, the Credit Parties shall
also be permitted to make one time Capital Expenditures not to exceed
$18,000,000 in the aggregate related to the Borrower’s construction of a new
facility at its Broad Street location in Chattanooga, Tennessee to be used for
the manufacture of ACT mouthwash.

SUBPART 2.32 A new subsection (vii) is hereby added immediately following
subsection (vi) in Section 11.3(b) of the Credit Agreement to read as follows:

(vii)           No Assignment to Defaulting Lenders or Impacted Lenders.  No
such assignment shall be made to any Defaulting Lender or any Impacted Lender.

SUBPART 2.33 A new subsection (i) is hereby added at the end of Section 11.3 of
the Credit Agreement to read as follows:

(i)           Assignment by a Non-Extending Revolving Lender.  If a
Non-Extending Revolving Lender assigns all or a portion of such Non-Extending
Revolving Lender’s Revolving Commitment and Revolving Loans (including such
Non-Extending Revolving Lender’s participations in LOC Obligations and/or
Swingline Loans) to an Eligible Assignee pursuant to the terms of this Section
11.3, such Eligible Assignee may agree in the applicable Assignment and
Assumption to become an Extending Revolving Lender with respect to such assigned
Revolving Commitments, Revolving Loans and participations in such LOC
Obligations and/or Swingline Loans and agree in the applicable Assignment and
Assumption to extend the Termination Date with respect to such assigned
Revolving Commitments, Revolving Loans and participations in LOC Obligations
and/or Swingline Loans to January 2, 2013.  In the event such Eligible Assignee
agrees to become an Extending Revolver Lender with respect to any assigned
interest from a Non-Extending Revolving Lender, such assigned Revolving
Commitments, Revolving Loans and participations in LOC Obligations and/or
Swingline Loans of such Extending Revolving Lender shall, commencing on the
effective date of such Assignment and Assumption, automatically begin to receive
the more favorable pricing with respect to Revolving Loans, Letter of Credit
Fees and Unused Fees contained in subclause (b) of the definition of
 
 
- 11 -

--------------------------------------------------------------------------------

 
“Applicable Percentage” consistent with the Revolving Loans, Letter of Credit
Fees and Unused Fees of the other Extending Revolving Lenders.  For the
avoidance of doubt, the parties hereto agree that the extension of the
Termination Date and increase in pricing described above in this clause (i) with
respect to any such assigned interest shall occur automatically on the effective
date of the applicable Assignment and Assumption without the need for any
amendment to this Agreement.

SUBPART 2.34 The Revolving Commitments of each Lender set forth on Schedule
1.1(a) of the Credit Agreement are hereby amended to read as provided on
Schedule 1.1(a) attached hereto.  Schedule 1.1(a) attached hereto also
identifies the Extending Revolving Lenders and the Non-Extending Revolving
Lenders as of the Seventh Amendment Effective Date.

SUBPART 2.35 A new Section 8 is hereby added immediately following Section 7 in
Exhibit 11.3 of the Credit Agreement to read as follows:

 
8.
Election to become an Extending Revolving Lender:  By checking the box at the
end of this Section 8, the Assignee hereby elects to become an Extending
Revolving Lender under the Credit Agreement and acknowledges and agrees that as
an Extending Revolving Lender, the Assigned Interest shall have a Termination
Date of January 2, 2013.  o

PART III
CONDITIONS TO EFFECTIVENESS

This Amendment shall be and become effective upon satisfaction of the following
conditions precedent:

(a)           receipt by the Agent of counterparts of this Amendment duly
executed by the Borrower, the Guarantors, the Required Lenders, each Lender with
a Revolving Commitment and the Agent;

(b)           receipt by the Agent of a certificate of a Responsible Officer of
the Borrower, (i) certifying that the organization documents of each Credit
Party delivered on the Closing Date have not been amended, supplemented or
otherwise modified since the Closing Date (except to the extent the Agent has
been notified thereof in such certificate) and remain in full force and effect
(as so amended, supplemented or otherwise modified, as applicable) as of the
Seventh Amendment Effective Date and (ii) attaching resolutions of each Credit
Party and certifying that such resolutions have not been amended, supplemented
or otherwise modified and remain in full force and effect as of the
Seventh  Amendment Effective Date; and

(c)           receipt by the Agent and the Lenders of all fees due and owing to
them as of the date hereof, together with reimbursement for all reasonable,
documented out-of-pocket expensed owing to the Agent.

PART IV
MISCELLANEOUS

SUBPART 4.1 Representations and Warranties.  Each Credit Party hereby represents
and warrants to the Agent and the Lenders that (a) no Default or Event of
Default exists on and as of the date
 
 
- 12 -

--------------------------------------------------------------------------------

 
hereof, (b) each Credit Party has the requisite corporate power and authority to
execute, deliver and perform this Amendment and (c) the representations and
warranties set forth in Section 6 of the Credit Agreement are true and correct
in all material respects as of the date hereof (except for those which expressly
relate to an earlier date).  Each Credit Party acknowledges and confirms that
the Borrower’s obligations to repay the outstanding principal amount of the
Loans are unconditional and not subject to any offsets, defenses or
counterclaims.

SUBPART 4.2  Acknowledgment.  Each Guarantor hereby acknowledges and consents to
all of the terms and conditions of this Amendment and agrees that this Amendment
does not operate to reduce or discharge the Guarantors’ obligations under the
Credit Agreement or the other Credit Documents.

SUBPART 4.3 Cross-References.  References in this Amendment to any Part or
Subpart are, unless otherwise specified, to such Part or Subpart of this
Amendment.

SUBPART 4.4 Credit Document.  This Amendment shall constitute a Credit Document
under the terms of the Credit Agreement.

SUBPART 4.5 References in Other Credit Documents.  All references to the Credit
Agreement in each of the Credit Documents shall hereafter mean the Credit
Agreement as amended by this Amendment.  Except as specifically amended hereby
or otherwise agreed, the Credit Agreement is hereby ratified and confirmed and
shall remain in full force and effect according to its terms.

SUBPART 4.6 Counterparts/Telecopy.  This Amendment may be executed by the
parties hereto in several counterparts, each of which shall be deemed to be an
original and all of which shall constitute together but one and the same
agreement.  Delivery of executed counterparts of this Amendment by telecopy
shall be effective as an original and shall constitute a representation that an
original shall be delivered.

SUBPART 4.7 Governing Law.  THIS AMENDMENT SHALL BE DEEMED TO BE A CONTRACT MADE
UNDER AND GOVERNED BY THE INTERNAL LAWS OF THE STATE OF NEW YORK.

SUBPART 4.8 Successors and Assigns.  This Amendment shall be binding upon and
inure to the benefit of the parties hereto and their respective successors and
assigns.

 
[remainder of page intentionally left blank]

 

 
 
- 13 -

--------------------------------------------------------------------------------

 
IN WITNESS WHEREOF the Borrower, the Guarantors and the Lenders have caused this
Amendment to be duly executed on the date first above written.

 

BORROWER:     
CHATTEM, INC.,
a Tennessee corporation

By:  /s/ Robert E. Bosworth

--------------------------------------------------------------------------------

Name:  Robert E. Bosworth
Title:  President and Chief Operating Officer
    GUARANTORS:     
SIGNAL INVESTMENT & MANAGEMENT CO.,
a Delaware corporation

By:  /s/ Robert E. Bosworth

--------------------------------------------------------------------------------

Name:  Robert E. Bosworth
Title:  President
 
SUNDEX, LLC,
a Tennessee limited liability company

By:  /s/ Robert E. Bosworth

--------------------------------------------------------------------------------

Name:  Robert E. Bosworth
Title:  President
 
CHATTEM (CANADA) HOLDINGS, INC.,
a Delaware corporation

By:  /s/ Robert E. Bosworth

--------------------------------------------------------------------------------

Name:  Robert E. Bosworth
Title:  President

 
CHATTEM, INC.
SEVENTH AMENDMENT TO CREDIT AGREEMENT
 
 

--------------------------------------------------------------------------------

 
 

 
BANK OF AMERICA, N.A.,
in its capacity as Agent
 
By:  /s/ Anne M. Zeschke

--------------------------------------------------------------------------------

Name:  Anne M. Zeschke
Title:  Vice President
     
BANK OF AMERICA, N.A.,
in its capacity as a Lender

By:  /s/ John M. Hall

--------------------------------------------------------------------------------

Name:  John M. Hall
Title:  Senior Vice President
 
 
SUNTRUST BANK

By:  /s/ E. Donald Besch, Jr.

--------------------------------------------------------------------------------

Name:  E. Donald Besch, Jr.
Title:  Managing Director

BRANCH BANKING AND TRUST COMPANY

By:  /s/ R. Andrew Beam

--------------------------------------------------------------------------------

Name:  R. Andrew Beam
Title:  Senior Vice President

NATIONAL CITY BANK

By:  /s/ Deroy Scott

--------------------------------------------------------------------------------

Name:  Deroy Scott
Title:  Vice President

WACHOVIA BANK, NATIONAL ASSOCIATION

By:  /s/ Bryan Hulker

--------------------------------------------------------------------------------

Name:  Bryan Hulker
Title:  Vice President

 

CHATTEM, INC.
SEVENTH AMENDMENT TO CREDIT AGREEMENT
 
 

--------------------------------------------------------------------------------

 

 
AIB DEBT MANAGEMENT, LIMITED
         
By:  /s/ Joseph Augustini

--------------------------------------------------------------------------------

Name:  Joseph Augustini
 
Title:  Senior Vice President
     
By:  /s/ Shane O’Driscoll

--------------------------------------------------------------------------------

Name:  Shane O’Driscoll
 
Title:  Assistant Vice President

 
 
 
 
 
CHATTEM, INC.
SEVENTH AMENDMENT TO CREDIT AGREEMENT
 
 

--------------------------------------------------------------------------------

 
 

 
APOSTLE LOOMIS SAYLES CREDIT OPPORTUNITIES FUND, As Lender

By:Loomis, Sayles & Company, L.P.
Its Investment Manager

By:  Loomis, Sayles & Company, Incorporated,
Its General Partner

By:  /s/ Mary McCarthy

--------------------------------------------------------------------------------

Name:  Mary McCarthy
Title:  Vice President

 

 
 
 
 
CHATTEM, INC.
SEVENTH AMENDMENT TO CREDIT AGREEMENT
 
 

--------------------------------------------------------------------------------

 
 

 
APOSTLE LOOMIS SAYLES SENIOR LOAN FUND,
As Lender

By:Loomis, Sayles & Company, L.P.
Its Investment Manager

By:  Loomis, Sayles & Company, Incorporated,
Its General Partner

By:  /s/ Mary McCarthy

--------------------------------------------------------------------------------

Name:  Mary McCarthy
Title:  Vice President

 

 
 
 
 
 
CHATTEM, INC.
SEVENTH AMENDMENT TO CREDIT AGREEMENT
 
 

--------------------------------------------------------------------------------

 
 

 
BLUEMOUNTAIN CLO III LTD.

By:BlueMountain Capital Management, LLC
Its Collateral Manager

By:  /s/ Michael Abatemarco

--------------------------------------------------------------------------------

Name:  Michael Abatemarco
Title:  Associate

 
 
 
 
 

CHATTEM, INC.
SEVENTH AMENDMENT TO CREDIT AGREEMENT
 
 

--------------------------------------------------------------------------------

 
 

 
KDPAM for Boeing Co. Employees Retirement Fund

By:  /s/ Kathy A. News

--------------------------------------------------------------------------------

Name:  Kathy A. News
Title:   Sr. Portfolio Manager
KDP Asset Management

 
 
 
 
 
 
 
 
CHATTEM, INC.
SEVENTH AMENDMENT TO CREDIT AGREEMENT
 
 

--------------------------------------------------------------------------------

 
 

 
SILVERMINE CAPITAL MANAGEMENT, LLC

CANNINGTON FUNDING LTD.
Silvermine Capital Management LLC
As Investment Manager

By:  /s/ Gregory C. Smith

--------------------------------------------------------------------------------

Name:  Gregory C. Smith
Title:  Vice President

 
 
 
 
 
 
 
 
CHATTEM, INC.
SEVENTH AMENDMENT TO CREDIT AGREEMENT
 
 

--------------------------------------------------------------------------------

 
 

 
CAVALRY CLO I, LTD

By:  Regiment Capital Management, LLC
as its Investment Advisor

By:  Regiment Capital Advisors, LP
its Manager and pursuant to delegated authority

By:  Regiment Capital Advisors, LLC
its General Partner

By:  /s/ William Heffron

--------------------------------------------------------------------------------

Name:  William Heffron
Title:  Authorized Signatory

 
 
 
 
 
 

 
CHATTEM, INC.
SEVENTH AMENDMENT TO CREDIT AGREEMENT
 
 

--------------------------------------------------------------------------------

 
 

 
CENT CDO 12 LIMITED

By:  RiverSource Investments, LLC
as Collateral Manager

By:  /s/ Robin C. Stancil

--------------------------------------------------------------------------------

Name:  Robin C. Stancil
Title:  Director of Operations

 
 
 
 
 
 

CHATTEM, INC.
SEVENTH AMENDMENT TO CREDIT AGREEMENT
 
 

--------------------------------------------------------------------------------

 
 

 
CENT CDO 14 LIMITED

By:  RiverSource Investments, LLC
as Collateral Manager

By:  /s/ Robin C. Stancil

--------------------------------------------------------------------------------

Name:  Robin C. Stancil
Title:  Director of Operations

 

 
 
 
 
 
 

CHATTEM, INC.
SEVENTH AMENDMENT TO CREDIT AGREEMENT
 
 

--------------------------------------------------------------------------------

 
 

 
CENT CDO III, LIMITED

By:  RiverSource Investments, LLC
as Collateral Manager

By:  /s/ Robin C. Stancil

--------------------------------------------------------------------------------

Name:  Robin C. Stancil
Title:  Director of Operations

 

 
 
 
 

 
CHATTEM, INC.
SEVENTH AMENDMENT TO CREDIT AGREEMENT
 
 

--------------------------------------------------------------------------------

 
 

 
CONFLUENT 3 LIMITED

By:  Morgan Stanley Investment Management Inc.
as Investment Manager

By:  /s/ Robert Drobny

--------------------------------------------------------------------------------

Name:  Robert Drobny
Title:  Executive Director

 

 
 
 
 
 

CHATTEM, INC.
SEVENTH AMENDMENT TO CREDIT AGREEMENT
 
 

--------------------------------------------------------------------------------

 
 

 
CREDOS FLOATING RATE FUND, L.P.
     
By:  Shenkman Capital Management, Inc.,
 
its General Partner
         
By:  /s/ Richard H. Weinstein

--------------------------------------------------------------------------------

Name:  Richard H. Weinstein
 
Title:  Executive Vice President

 
 
 
 
CHATTEM, INC.
SEVENTH AMENDMENT TO CREDIT AGREEMENT
 
 

--------------------------------------------------------------------------------

 
 

 
FRANKLIN CLO IV, LIMITED

By:  /s/ David Ardini

--------------------------------------------------------------------------------

Name:  David Ardini
Title:  Vice President

 

 
 
 
 
 

 
CHATTEM, INC.
SEVENTH AMENDMENT TO CREDIT AGREEMENT
 
 

--------------------------------------------------------------------------------

 
 

 
FRANKLIN FLOATING RATE DAILY ACCESS FUND

By:  /s/ Richard Hsu

--------------------------------------------------------------------------------

Name:  Richard Hsu
Title:  Vice President

 

 
 
 
 
 
 

CHATTEM, INC.
SEVENTH AMENDMENT TO CREDIT AGREEMENT
 
 

--------------------------------------------------------------------------------

 
 

 
FRANKLIN FLOATING RATE MASTER SERIES

By:  /s/ Richard Hsu

--------------------------------------------------------------------------------

Name:  Richard Hsu
Title:  Vice President

 

 
 
 
 
 

 
CHATTEM, INC.
SEVENTH AMENDMENT TO CREDIT AGREEMENT
 
 

--------------------------------------------------------------------------------

 
 

 
FRANKLIN TEMPLETON SERIES II FUNDS FLOATING RATE II FUND

By:  /s/ Richard Hsu

--------------------------------------------------------------------------------

Name:  Richard Hsu
Title:  Vice President

 

 
 
 
 
 

 
CHATTEM, INC.
SEVENTH AMENDMENT TO CREDIT AGREEMENT
 
 

--------------------------------------------------------------------------------

 
 

 
GALLATIN CLO III 2007-1, LTD,
As Assignee

By:  Ursa Mine Credit Advisors, LLC
as its Collateral Manager

By:  /s/ Niall Rosenzweig

--------------------------------------------------------------------------------

Name:  Niall Rosenzweig
Title:  Principal

 

 
 
 
 
 

 
CHATTEM, INC.
SEVENTH AMENDMENT TO CREDIT AGREEMENT
 
 

--------------------------------------------------------------------------------

 
 

 
LATITUDE CLO II, LTD

By:  /s/ Kirk Wallace

--------------------------------------------------------------------------------

Name:  Kirk Wallace
Title:  Senior Vice President

 

 
 
 
 
 

 
CHATTEM, INC.
SEVENTH AMENDMENT TO CREDIT AGREEMENT
 
 

--------------------------------------------------------------------------------

 
 

 
LCM III, LTD.

By:  Lyon Capital Management LLC,
as Collateral Manager

By:  /s/ Sophie A. Venon

--------------------------------------------------------------------------------

Name:  Sophie A. Venon
Title:  Portfolio Manager

 

 
 
 
 
 
 

CHATTEM, INC.
SEVENTH AMENDMENT TO CREDIT AGREEMENT
 
 

--------------------------------------------------------------------------------

 
 

 
LCM V LTD.

By:  Lyon Capital Management LLC,
as Collateral Manager

By:  /s/ Sophie A. Venon

--------------------------------------------------------------------------------

Name:  Sophie A. Venon
Title:  Portfolio Manager

 

 
 
 
 
 
 

CHATTEM, INC.
SEVENTH AMENDMENT TO CREDIT AGREEMENT
 
 

--------------------------------------------------------------------------------

 
 

 
LCM VI, LTD.

By:  Lyon Capital Management LLC,
as Collateral Manager

By:  /s/ Sophie A. Venon

--------------------------------------------------------------------------------

Name:  Sophie A. Venon
Title:  Portfolio Manager

 

 
 
 
 
 
 

CHATTEM, INC.
SEVENTH AMENDMENT TO CREDIT AGREEMENT
 
 

--------------------------------------------------------------------------------

 
 

 
SILVERMINE CAPITAL MANAGEMENT, LLC

LOAN FUNDING XIII for itself or as agent
for Corporate Funding XIII, as a Lender

By:  /s/ Gregory C. Smith

--------------------------------------------------------------------------------

Name:  Gregory C. Smith
Title:  Vice President
Silvermine Capital Management, LLC

 

 
 
 
 
 

 
CHATTEM, INC.
SEVENTH AMENDMENT TO CREDIT AGREEMENT
 
 

--------------------------------------------------------------------------------

 
 

 
LOOMIS SAYLES CAYMAN LEVERAGED SENIOR LOAN FUND LTD., As Lender

By: Loomis, Sayles & Company, L.P.
Its Investment Adviser

By:  Loomis, Sayles & Company, Incorporated,
Its General Partner

By:  /s/ Mary McCarthy

--------------------------------------------------------------------------------

Name:  Mary McCarthy
Title:  Vice President

 

 
 
 
 
 
 

CHATTEM, INC.
SEVENTH AMENDMENT TO CREDIT AGREEMENT
 
 

--------------------------------------------------------------------------------

 
 

 
LOOMIS SAYLES CLO I, LTD.,
As Lender

By:Loomis, Sayles & Company, L.P.
Its Collateral Manager

By:  Loomis, Sayles & Company, Incorporated,
Its General Partner

By:  /s/ Mary McCarthy

--------------------------------------------------------------------------------

Name:  Mary McCarthy
Title:  Vice President

 

 
 
 
 
 

 
CHATTEM, INC.
SEVENTH AMENDMENT TO CREDIT AGREEMENT
 
 

--------------------------------------------------------------------------------

 
 

 
LOOMIS SAYLES LEVERAGED SENIOR LOAN FUND, LTD., As Lender

By:Loomis, Sayles & Company, L.P.
Its Investment Manager

By:  Loomis, Sayles & Company, Incorporated,
Its General Partner

By:  /s/ Mary McCarthy

--------------------------------------------------------------------------------

Name:  Mary McCarthy
Title:  Vice President

 

 
 
 
 
 
 

CHATTEM, INC.
SEVENTH AMENDMENT TO CREDIT AGREEMENT
 
 

--------------------------------------------------------------------------------

 
 

 
THE LOOMIS SAYLES SENIOR LOAN FUND, LLC,
As Lender

By:Loomis, Sayles & Company, L.P.
Its Managing Member

By:  Loomis, Sayles & Company, Incorporated,
Its General Partner

By:  /s/ Mary McCarthy

--------------------------------------------------------------------------------

Name:  Mary McCarthy
Title:  Vice President

 

 
 
 
 
 

 
CHATTEM, INC.
SEVENTH AMENDMENT TO CREDIT AGREEMENT
 
 

--------------------------------------------------------------------------------

 
 

 
MOUNTAIN VIEW CLO II, LTD.

By:Seix Investment Advisors LLC,
as Collateral Manager

By:  /s/ George Goudelias

--------------------------------------------------------------------------------

Name:  George Goudelias
Title:  Managing Director

 

 
 
 
 
 
 

CHATTEM, INC.
SEVENTH AMENDMENT TO CREDIT AGREEMENT
 
 

--------------------------------------------------------------------------------

 
 

 
NATIXIS LOOMIS SAYLES SENIOR LOAN FUND,
As Lender

By:Loomis, Sayles & Company, L.P.
Its Investment Manager

By:  Loomis, Sayles & Company, Incorporated,
Its General Partner

By:  /s/ Mary McCarthy

--------------------------------------------------------------------------------

Name:  Mary McCarthy
Title:  Vice President

 

 
 
 
 
 

 
CHATTEM, INC.
SEVENTH AMENDMENT TO CREDIT AGREEMENT
 
 

--------------------------------------------------------------------------------

 
 

 
QUALCOMM GLOBAL TRADING, INC.

By:Morgan Stanley Investment Management Inc.
as Investment Manager

By:  /s/ Robert Drobny

--------------------------------------------------------------------------------

Name:  Robert Drobny
Title:  Executive Director

 

 
 
 
 
 
 

CHATTEM, INC.
SEVENTH AMENDMENT TO CREDIT AGREEMENT
 
 

--------------------------------------------------------------------------------

 
 

 
OLD WESTBURY GLOBAL OPPORTUNITIES FUND

By:Shenkman Capital Management, Inc.,
as Investment Manager

By:  /s/ Richard H. Weinstein

--------------------------------------------------------------------------------

Name:  Richard H. Weinstein
Title:  Executive Vice President

 

 
 
 
 
 

 
CHATTEM, INC.
SEVENTH AMENDMENT TO CREDIT AGREEMENT
 
 

--------------------------------------------------------------------------------

 
 

 
ONE WALL STREET CLO I, LTD

By:  /s/ Josephine H. Shin

--------------------------------------------------------------------------------

Name:  Josephine H. Shin
Title:  Senior Vice President

 

 
 
 
 
 
 

CHATTEM, INC.
SEVENTH AMENDMENT TO CREDIT AGREEMENT
 
 

--------------------------------------------------------------------------------

 
 

 
ONE WALL STREET CLO II, LTD

By:  /s/ Josephine H. Shin

--------------------------------------------------------------------------------

Name:  Josephine H. Shin
Title:  Senior Vice President

 

 
 
 
 
 

 
CHATTEM, INC.
SEVENTH AMENDMENT TO CREDIT AGREEMENT
 
 

--------------------------------------------------------------------------------

 
 

 
RIVERSOURCE BOND SERIES, INC. – RIVERSOURCE FLOATING RATE FUND

By:  /s/ Robin C. Stancil

--------------------------------------------------------------------------------

Name:  Robin C. Stancil
Title:  Assistant Vice President

 

 
 
 

 
CHATTEM, INC.
SEVENTH AMENDMENT TO CREDIT AGREEMENT
 
 

--------------------------------------------------------------------------------

 
 

 
SEQUILS-CENTURION V, LTD.

By:  RiverSource Investments, LLC
as Collateral Manager

By:  /s/ Robin C. Stancil

--------------------------------------------------------------------------------

Name:  Robin C. Stancil
Title:  Director of Operations

 

 
 
 
 
 

 
CHATTEM, INC.
SEVENTH AMENDMENT TO CREDIT AGREEMENT
 
 

--------------------------------------------------------------------------------

 
 

 
SILVER CREST CBNA LOAN FUNDING LLC

By:  /s/ Andrew Valko

--------------------------------------------------------------------------------

Name:  Andrew Valko
Title:  Attorney-in-Fact

 

 
 
 
 
 
 

CHATTEM, INC.
SEVENTH AMENDMENT TO CREDIT AGREEMENT
 
 

--------------------------------------------------------------------------------

 
 

 
STANFIELD VEYRON CLO, LTD.

By:  Stanfield Capital Partners as its Collateral Manager

By:  /s/ David Frey

--------------------------------------------------------------------------------

Name:  David Frey
Title:  Partner

 

 
 
 
 
 

 
CHATTEM, INC.
SEVENTH AMENDMENT TO CREDIT AGREEMENT
 
 

--------------------------------------------------------------------------------

 
 

 
KDPAM for State Retirement & Pension System of Maryland

By:  /s/ Kathy A. News

--------------------------------------------------------------------------------

Name:  Kathy A. News
Title:  Sr. Portfolio Manager
KDP Asset Management

 
 
 
 
 
 
 

 
CHATTEM, INC.
SEVENTH AMENDMENT TO CREDIT AGREEMENT
 
 

--------------------------------------------------------------------------------

 
 

 
VENTURE VII CDO LIMITED

By its investment advisor,
MJX Asset Management LLC

By:  /s/ John J. Wagner

--------------------------------------------------------------------------------

Name:  John J. Wagner
Title:  Managing Director

 

 
 
 
 
 

 
CHATTEM, INC.
SEVENTH AMENDMENT TO CREDIT AGREEMENT
 
 

--------------------------------------------------------------------------------

 
 

 
VENTURE VIII CDO LIMITED

By its investment advisor,
MJX Asset Management LLC

By:  /s/ John J. Wagner

--------------------------------------------------------------------------------

Name:  John J. Wagner
Title:  Managing Director

 

 
 
 
 

 
CHATTEM, INC.
SEVENTH AMENDMENT TO CREDIT AGREEMENT
 
 

--------------------------------------------------------------------------------

 
 

 
KDPAM for Veronica Atkins Marital Trust

By:  /s/ Kathy A. News

--------------------------------------------------------------------------------

Name:  Kathy A. News
Title:  Sr. Portfolio Manager
KDP Asset Management

 
 
 
 
 
 

CHATTEM, INC.
SEVENTH AMENDMENT TO CREDIT AGREEMENT
 
 

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XL RE EUROPE LIMITED

By:  Stanfield Capital Partners as its Collateral Manager

By:  /s/ David Frey

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Name:  David Frey
Title:  Partner

 
 
 
 
 

CHATTEM, INC.
SEVENTH AMENDMENT TO CREDIT AGREEMENT
 
 

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Schedule 1.1(a)

Lender
Revolving Commitments through the Termination Date
of
November 15, 2010
Revolving Commitment Percentage through the Termination Date of
November 15, 2010
Revolving Commitments through the Termination Date of
January 2, 2013
Revolving Commitment Percentage through the Termination Date of
January 2, 2013
Bank of America, N.A.
$45,000,000
45.000000000%
$45,000,000
45.000000000%
National City Bank
$20,000,000
20.000000000%
$20,000,000
20.000000000%
Branch Banking and Trust Company
$15,000,000
15.000000000%
$15,000,000
15.000000000%
SunTrust Bank
$10,000,000
10.000000000%
$10,000,000
10.000000000%
Wachovia Bank,
National Association
$10,000,000
10.000000000%
$10,000,000
10.000000000%
Total
$100,000,000
100.000000000%
$100,000,000
100.000000000%

CHATTEM, INC.
SEVENTH AMENDMENT TO CREDIT AGREEMENT
 
 

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