Ex-10.16.2



 





Exhibit 10.16.2




FIRST AMENDMENT TO

SECOND AMENDED AND RESTATED LOAN AGREEMENT




     THIS FIRST AMENDMENT TO SECOND AMENDED AND RESTATED LOAN AGREEMENT (this
“Amendment”), dated December 31, 2006, is made and entered into on the terms and
conditions hereinafter set forth, by and between CUMBERLAND PHARMACEUTICALS, INC., a Tennessee
corporation (the “Borrower”), and BANK OF AMERICA, N.A., a national banking association
(the “Lender”).



RECITALS:




     1. The Borrower and the Lender are parties to a Second Amended and Restated Agreement dated
as of April 6, 2006 (as the same heretofore has been or hereafter may be further amended,
restated, supplemented, extended, renewed, replaced or otherwise modified from time to time, the
“Loan Agreement”), pursuant to which the Lender has agreed to extend credit to the
Borrower subject to and upon the terms and conditions set forth in the Loan Agreement.



     2. The parties hereto desire to amend the Loan Agreement in certain respects as more
particularly hereinafter set forth.



AGREEMENTS:




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



     1. Amendment of Section 8.8. Section 8.8 (Lease Expenditures) of the Loan Agreement
is hereby amended by deleting the figure “$350,000” and substituting in lieu thereof the figure
“$500,000”.



     2. Representations and Warranties of the Borrower. As an inducement to the Lender to
enter into this Amendment, the Borrower hereby represents and warrants that on and as of the date
hereof, and taking into account the provisions hereof, the representations and warranties
contained in the Loan Agreement and the other Loan Documents are true and correct in all material
respects, except for representations and warranties that expressly relate to an earlier date,
which remain true and correct as of said earlier date.



     3. Effect of Amendment; Continuing Effectiveness of Loan Agreement and Loan
Documents.




     (a) Neither this Amendment nor any other indulgences that may have been granted to
the Borrower by the Lender shall constitute a course of dealing or otherwise obligate the
Lender to modify, expand or extend the agreements contained herein, to agree to any other
amendments to the Loan Agreement or to grant any consent to, waiver of or indulgence with
respect to any other noncompliance with any provision of the Loan Documents.




     (b) Upon and after the effectiveness of this Amendment, each reference in the Loan
Agreement to “this Agreement”, “hereunder”, “hereof” or words of like import referring to
the Loan Agreement, and each reference in the other Loan Documents to “the Loan Agreement”,
“thereunder”, “thereof” or words of like import referring to the Loan Agreement, shall mean
and be a reference to the Loan Agreement as modified hereby. This Amendment shall
constitute a Loan Document for all purposes of the Loan Agreement and the other Loan
Documents.



 









 






     (c) Except to the extent amended or modified hereby, the Loan Agreement, the other Loan
Documents and all terms, conditions and provisions thereof shall continue in full force and
effect in all respects and shall be construed in accordance with the modification of the
Loan Agreement effected hereby.



     4. Release and Waiver. The Borrower hereby stipulates, acknowledges and agrees that
it has no claims or causes of action of any kind whatsoever against the Lender arising out of or
relating in any way to any event, circumstance, action or failure to act with respect to this
Amendment, the Loan Agreement, the other Loan Documents or any matters described or referred to
herein or therein or otherwise related hereto or thereto. The Borrower hereby releases the Lender
from any and all claims, causes of action, demands and liabilities of any kind whatsoever,
whether direct or indirect, fixed or contingent, liquidated or unliquidated, disputed or
undisputed, known or unknown, that the Borrower may now or hereafter have and that arise out of
or relate in any way to any event, circumstance, action or failure to act on or before the date
of this Amendment with respect to this Amendment, the Loan Agreement, the other Loan Documents or
any matters described or referred to herein or therein or otherwise related hereto or thereto.
The release by the Borrower herein, together with the other terms and provisions of this
Amendment, are entered into by the Borrower advisedly and without compulsion, coercion or duress,
the Borrower having determined that this Amendment is in the economic best interests of the
Borrower. The Borrower represent that they are entering into this Amendment freely and with the
advice of counsel as to their legal alternatives.



     5. Further Actions. Each of the parties to this Amendment agrees that at any time
and from time to time upon written request of the other party, it will execute and deliver such
further documents and do such further acts and things as such other party reasonably may
request in order to effect the intents and purposes of this Amendment.



     6. Counterparts. This Amendment may be executed in multiple counterparts or copies,
each of which shall be deemed an original hereof for all purposes. One or more counterparts or
copies of this Amendment may be executed by one or more of the parties hereto, and some different
counterparts or copies executed by one or more of the other parties. Each counterpart or copy
hereof executed by any party hereto shall be binding upon the party executing same even though
other parties may execute one or more different counterparts or copies, and all counterparts or
copies hereof so executed shall constitute but one and the same agreement. Each party hereto, by
execution of one or more counterparts or copies hereof, expressly authorizes and directs any other
party hereto to detach the signature pages and any corresponding acknowledgment, attestation,
witness or similar pages relating thereto from any such counterpart or copy hereof executed by the
authorizing party and affix same to one or more other identical counterparts or copies hereof so
that upon execution of multiple counterparts or copies hereof by all parties hereto, there shall
be one or more counterparts or copies hereof to which is(are) attached signature pages containing
signatures of all parties hereto and any corresponding acknowledgment, attestation, witness or
similar pages relating thereto.



     7. Miscellaneous.




     (a) This Amendment shall be governed by, construed and enforced in accordance with
the laws of the State of Tennessee, without reference to the conflicts or choice of law
principles thereof.




     (b) The headings in this Amendment and the usage herein of defined terms are for
convenience of reference only, and shall not be construed as amplifying, limiting or
otherwise affecting the substantive provisions hereof.




     (c) All references herein to the preamble, the recitals or sections, paragraphs,
subparagraphs, annexes or exhibits are to the preamble, recitals, sections, paragraphs,
subparagraphs, annexes and exhibits of or to this Amendment unless otherwise specified.
The words “hereof”, “herein” and “hereunder” and words of similar import, when used in
this



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Amendment, refer to this Amendment as a whole and not to any particular provision of
this Amendment.




     (d) Any reference herein to any instrument, document or agreement, by whatever
terminology used, shall be deemed to include any and all amendments, modifications,
supplements, extensions, renewals, substitutions and/or replacements thereof as the context
may require.




     (e) When used herein, (1) the singular shall Include the plural, and vice versa, and
the use of the masculine, feminine or neuter gender shall include all other genders, as
appropriate, (2) “include”, “includes” and “including” shall be deemed to be followed by
“without limitation” regardless of whether such words or words of like import in fact
follow same, and (3) unless the context clearly indicates otherwise, the disjunctive “or”
shall include the conjunctive “and”.



     IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed and
delivered as of the date first written above.



[Remainder of Page Intentionally Left Blank;

Signature Pages Follow)




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[Signature Page to First Amendment to Second Amended and Restated Loan Agreement

(Cumberland Pharmaceuticals, Inc.) dated December 31 2006]




	 	 	 	 	 
	 	BORROWER:





CUMBERLAND PHARMACEUTICALS, INC.

 	 
	 	By:  	/s/ A.J. Kazimi
 	 
	 	 	Name:  	A.J. Kazimi 	 
	 	 	Title:  	C.E.O. 	 
	 


ACKNOWLEDGED:




	 	 	 	 	 
	CUMBERLAND EMERGING TECHNOLOGIES, INC.

 	 	 
	By:  	/s/ David L. Lowrance
 	 	 
	 	Name:  	David L. Lowrance 	 	 
	 	Title:  	Director of Finance & Accounting 	 	 



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[Signature Page to First Amendment to Second Amended and Restated Loan Agreement

(Cumberland Pharmaceuticals, Inc.) dated December 31, 2006]




	 	 	 	 	 
	 	LENDER:



BANK OF AMERICA, N.A.

 	 
	 	By:  	/s/ H. Hope Walker
 	 
	 	 	Name:  	H. Hope Walker 	 
	 	 	Title:  	V.P. 	 
	 




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