KV PHARMACEUTICAL COMPANY


February 17, 1997

Marc S. Hermelin
General Partner
Rosh Chodesh
c/o KV Pharmaceutical Company
2503 South Hanley Road
St. Louis, MO  63144

RE:      Lease of 2503 South Hanley Road

Dear Marc:

Reference is hereby made to the  Commercial  Lease (the "Lease") dated March 11,
1971 for the premises  located at 2503 South Hanley  Road,  Brentwood,  MO 63144
(the "Premises"),  as amended by the Supplement to the Lease,  dated November 9,
1972, entered into by your  predecessor-in-interest in the Premises, as Landlord
and KV Pharmaceutical Company, as tenant, and by letter agreement dated November
12, 1979 and five (5) year extension  dated November 20, 1986 to the term of the
Lease through December 31, 1991 signed by you and KV Pharmaceutical  Company and
a five (5) year  extension  dated  November  20,  1991 to the term of the  lease
signed by you and the Company,  and a five (5) year extension to the term of the
Lease through December 31, 2001.

KV Pharmaceutical  Company has a need for additional office and lab space at the
2503 South  Hanley  location.  The  Landlord is not  currently  in a position to
finance such an expansion, but is willing to entertain a proposal to expand such
facilities by the tenant and grant certain  lease  concessions  to the tenant as
consideration  for the investment by KV. The cost of the expansion  approximates
$1,800,000.

In consideration of the tenant investing in the proposed improvements,  Landlord
agrees to an addendum to the lease to reflect the following:

1.       The expiration date of the lease extension effective January
         1, 1997 shall be extended to December 31, 2006.

2.       One  additional  five (5) year  option to extend  the term of the lease
         beginning  January 1, 2007  shall be added  under the same terms as the
         prior lease extensions.

3.       KV shall have a right of first  refusal to purchase the  property  upon
         notification  of an offer to purchase the property by a bona fide third
         party.  KV shall  have 30  calendar  days to match the bona fide  third
         party offer.


<PAGE>
4.       Rentals  for the  first  seven (7) years  after the  completion  of the
         construction  will be at the current  rate,  effective  January 1, 1997
         (adjusted for the Consumer Price Index,  U.S. City Average,  All Items)
         on 25,000  square  feet.  At the end of the seven (7) year  period from
         completion of construction, rentals shall be increased to a fair market
         rate on the total  expanded  square  footage  of  approximately  35,000
         square feet, but not less than the rate per square foot being charged.

5.       KV agrees  that at the  request of the lessor,  an  appraisal  or third
         party real estate opinion may be requested and the lease rates adjusted
         to such higher rate as supported by the  appraisal/opinion.  Lessor may
         request  such  appraisal/third  party  real  estate  opinion  not  more
         frequently than once every four years.

6.       If for any reason  during the current  lease  extension  or  additional
         option period, KV elects to vacate the premises, KV will be responsible
         for  remodeling  the  special  use  laboratory  space  up to a  maximum
         liability of $300,000.

Please  indicate  your  acceptance  and agreement of the terms of this letter by
signing and returning the enclosed copy of this letter to the undersigned.

                                   Very truly yours,

                                   KV PHARMACEUTICAL COMPANY


                                   /s/ Gerald R. Mitchell
                                   ----------------------------
                                   Gerald R. Mitchell
                                   Vice President, Finance

Accepted and agreed:


/s/ Marc S. Hermelin                    2/17/97
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Marc S. Hermelin                         Date