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Exhibit 10.4  

 
 

BORDEN, INC.
  
  ADVISORY DIRECTORS PLAN    
    

Effective
as of July 1, 1989 

        Effective
as of July 1, 1889, Borden, Inc. has adopted the Borden, Inc. Advisory Directors Plan (the "Plan") for the benefit of certain members of its Board of
Directors. This Plan amends and restates the Borden, Inc. Advisory Directors Benefit Plan effective as of April 1, 1986 and June 1, 1988 (the "Prior Plan"). 

        The
purpose of the Plan is to provide certain retired Directors with income and to secure to the Corporation the advice and counsel of those Directors who have retired upon attainment of
age 70. 

SECTION ONE

Definitions  

	1.1
	"Advisory
Director" means an Outside Director whose services as a Director have terminated and who is entitled to benefits under this Plan in accordance with
Section 2.

	1.2
	"Board
of Directors" means the Board of Directors of the Corporation.

	1.3
	"Corporation"
means Borden, Inc. and any successor to such Corporation by merger, purchase or otherwise.

	1.4
	"Director"
means a member of the Board of Directors.

	1.5
	"Director's
Service means the number of Plan Years during which the Director has served as a Director as of the date of his or her retirement as a Director.

	1.6
	"Effective
Date" of the Plan means July 1, 1989.

	1.7
	"Outside
Director" means a Director who is not an employee of the Corporation, but includes those who have continued to serve as a Director after their retirement from
active employment such as a retired ex—Chief Executive Officer.

	1.8
	"Plan"
means the Borden, Inc. Advisory Directors Plan as from time to time in effect.

	1.9
	"Plan
Year" means the 12 month period from May 1 of a calendar year through the succeeding April 30. 

SECTION TWO

Participation  

	2.1
	Participation
in the Plan shall be limited to Advisory Directors who are:

	(a)
	those
outside Directors already retired as of the Effective Date of the Plan who have been designated as Advisory Directors by the Board of Directors.

	(b)
	those
Outside Directors who serve as a Director for at least three (3) Plan Years, some part of such service which is on or after the Effective Date. Each such Outside Director
shall become an Advisory Director as of the annual meeting of the shareholders of the Corporation following attainment by the Outside Director of the age 70 whether or not such Director ceased to be a
Director prior to such shareholders meeting. 

SECTION THREE

Duties of Advisory Directors  

	3.1
	Advisory
Directors are:

	(a)
	invited
to attend up to two (2) meeting of the Corporation's Board of Directors each year in a nonvoting capacity; and

	(b)
	will
be available for consultation as requested by the Chief Executive Officer of the Corporation. 

SECTION FOUR

Amount and Period of Benefit  

	4.1
	The
aggregate amount, if any, payable under the Plan, and the period for which it is paid, shall be determined as follows:

	(a)
	In
the case of an Advisory Director already retired as of April 1, 1986;

	(i)
	the
amount shall be one-half of the annual retainer being paid to then-current non-retired Directors (including annual increases in
the amount of one-half of the increase, if any, in the amount of annual retainer paid to then-current non-retired Directors);

	(ii)
	the
period of payment shall be from the Effective Date until the end of the Plan Year during which the Advisory Director attains age 85.

	(b)
	In
the case of an Advisory Director who retires after April 1, 1986;

	(i)
	the
amount shall be the final rate of annual retainer paid to Outside Directors during the Advisory Director's final year as an Outside Director, with no increases in
such amount during the period of payment;

	(ii)
	the
period of payment shall be from the first day of the Plan Year following such Advisory Director's attainment of age 70, but in no event beyond the end of the Plan
Year during which the Advisory Director attains age 85.

	4.2
	The
amounts payable under this Section 4 are not conditioned upon the performance of the duties described in Section 3.

	4.3
	Advisory
Directors are paid the then current applicable meeting fees for all meetings they actually attend. 

SECTION FIVE

Provision for Benefits  

	5.1
	The
aggregate amount, if any, payable to an Advisory Director in accordance with Section Four shall be paid directly to such Advisory Director from the general assets of the
Corporation; provided, however, that:

	(a)
	The
Corporation shall make no provision for the funding of any amounts payable hereunder that (1) would cause the Plan to be a funded plan for purposes of Section 404(a)
(5) of the Internal Revenue Code of 1986, as amended ("Code"), or Title I of the Employee Retirement Income Security Act of 1974 ("ERISA") or (ii) would cause the Plan to be other than
an "unfunded and unsecured promise to pay money or other property in the future" under Treasury Regulations Section 1.83-3(e); and shall have no obligation to make any arrangement
for the accumulation of funds to pay any amounts under this Plan. Subject to the restrictions of the preceding sentence, the Corporation, in its sole discretion, may establish a grantor trust
described in Treasury Regulations Sections 1.677 (a)-1(d) to accumulate funds to pay amounts under this Plan, provided that the assets of the trust shall be required to be used to satisfy
the claims of the Corporation's general creditors in the event of the Corporation's bankruptcy or insolvency.

	(b)
	In
the event that the Corporation shall decide to establish an advance accrual reserve on its books against the future expense of such payments, such reserve shall not under any
circumstances by deemed to be an asset of this Plan but, at all times, shall remain a part of the general assets of the Corporation, subject to clams of the Corporation's creditors in the event of the
Corporation's bankruptcy or insolvency. 

SECTION SIX

Administration  

	6.1
	Plan Administrator

	

	The
Corporation shall be the "administrator" of the Plan within the meaning of ERISA.

	6.2
	'Pension Committee

	

	The
Pension Committee of the Board of Directors shall be vested with the general administration of the Plan. 

SECTION SEVEN

Amendment and Termination  

	7.1
	Amendment of the Plan

	

	Subject
to the provisions of Section 7.3, the Plan may be wholly or partially amended or otherwise modified at any time by the Board of Directors.

	7.2
	Termination of the Plan

	

	Subject
to the provisions of Section 7.3, the Plan may be terminated at any time by the Board of Directors.

	7.3
	No Impairment of Benefits

	

	Notwithstanding
the provisions of Sections 7.1 and 7.2, no amendment to or termination of the Plan shall impair any rights to benefits which have accrued
hereunder. 

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BORDEN, INC. ADVISORY DIRECTORS PLAN<PAGE>

                                                                Exhibit 4(q)

                     EIGHTH AMENDMENT TO LOAN AGREEMENT
                     ----------------------------------

         THIS EIGHTH AMENDMENT TO LOAN AGREEMENT (this "Amendment") is
entered into as of the 30th day of June, 2003 by and among LaSalle Bank
National Association, a national banking association ("Bank"), and each of
K-V Pharmaceutical Company, a Delaware corporation ("K-V"), Particle
Dynamics, Inc., a New York corporation ("PDI"), ETHEX Corporation, a
Missouri corporation ("ETHEX"), and THER-RX Corporation, a Missouri
corporation ("THER-RX"), jointly and severally (K-V, PDI, ETHEX and THER-RX
are collectively referred to as the "Borrowers").

                            W I T N E S S E T H:
                            - - - - - - - - - -

         WHEREAS, Bank and the Borrowers are party to that certain Loan
Agreement dated as of June 18, 1997, as amended by that certain First
Amendment to Loan Agreement dated as of October 28, 1998, that certain
Second Amendment to Loan Agreement dated as of March 11, 1999, that certain
Third Amendment to Loan Agreement dated as of June 22, 1999, that certain
Fourth Amendment to Loan Agreement dated as of December 17, 1999, that
certain Fifth Amendment to Loan Agreement dated as of December 21, 2001,
that certain Sixth Amendment to Loan Agreement dated as of December 20, 2002
and that certain Seventh Amendment to Loan Agreement dated as of April 28,
2003 (collectively, the "Agreement"); and

         WHEREAS, Bank and the Borrowers desire to further amend the
Agreement in accordance with this Amendment.

         NOW, THEREFORE, for and in consideration of the premises and mutual
agreements herein contained and for the purposes of setting forth the terms
and conditions of this Amendment, the parties, intending to be bound, hereby
agree as follows:

         1. Incorporation of the Agreement. All capitalized terms which are
            ------------------------------
not defined hereunder shall have the same meanings as set forth in the
Agreement, and the Agreement, to the extent not inconsistent with this
Amendment, is incorporated herein by this reference as though the same were
set forth in its entirety. To the extent any terms and provisions of the
Agreement are inconsistent with the amendments set forth in Paragraph 2
                                                            -----------
below, such terms and provisions shall be deemed superseded hereby. Except
as specifically set forth herein, the Agreement shall remain in full force
and effect and its provisions shall be binding on the parties hereto.

         2. Amendment of the Agreement. Borrowers and Bank hereby agree to
            --------------------------
amend the Agreement as follows:

                  (a) The definition of the term "Funded Debt Ratio"
                                                  -----------------
appearing in Paragraph 1.1 of the Agreement is hereby deleted in its
             -------------
entirety.

                  (b) The definition of the term "EBITDA" appearing in
                                                  ------
Paragraph 1.1 of the Agreement is hereby amended by adding the following
-------------
sentence at the end of such definition:

                  Notwithstanding the foregoing, a one-time non-recurring
                  charge of $16,500,000 relating to Borrower's pending
                  litigation with Healthpoint, Ltd. shall be added back to
                  EBITDA for the period ended September 30, 2002 and not for
                  any other period.

<PAGE>
<PAGE>

                  (c) The definitions of the terms "Fixed Charges", "Fixed
                                                    -------------    -----
Charge Coverage Ratio", "Senior Debt", "Senior Leverage Ratio" and "Total
---------------------    -----------    ---------------------       -----
Funded Debt Ratio" are hereby appended to the Agreement in Paragraph 1.1 as
-----------------                                          -------------
follows:

                  "Fixed Charges" means, for any period, the sum of total
                   -------------
                  Interest Expense, scheduled principal payments on Funded
                  Debt due in the next twelve month period and capital lease
                  principal payments due in the next twelve month period.

                  "Fixed Charge Coverage Ratio" means, as of any date, the
                   ---------------------------
                  ratio of (i) EBITDA, less income taxes paid in cash, to
                  (ii) Fixed Charges.

                  "Senior Debt" means total interest bearing Funded Debt
                   -----------
                  less Subordinated Debt.
                  ----

                  "Senior Leverage Ratio" means, as of any date, the ratio
                   ---------------------
                  of (i) Senior Debt to (ii) EBITDA.

                  "Total Funded Debt Ratio" means, as of any date, the ratio
                   -----------------------
                  of (i) total interest bearing Funded Debt to (ii) EBITDA.
                  It is understood and agreed that if Borrower consummates
                  an acquisition (whether via stock purchase, asset
                  purchase, merger or otherwise), Funded Debt of Borrowers
                  for the fiscal period during which such acquisition
                  occurred and all other relevant measuring periods shall be
                  calculated to include the Funded Debt of the Acquired
                  Assets, if applicable, for the relevant "trailing"
                  measuring periods as if such Acquired Asset was owned
                  hereunder at all such times.

                  (d) Paragraph 8.2(g)(i) is hereby deleted in its entirety
                      -------------------
and the following paragraph is hereby added to the Agreement in its place
and stead:

                           (i) Maintain a Total Funded Debt Ratio, at all
                  times, of not greater than the ratios set forth below:

                           PERIOD                             AMOUNT
                           ------                             ------
                           June 30, 2003                      4.00:1.0
                           and at all times thereafter

                  (e) Paragraph 8.2(g)(ii) is hereby amended and restated in
                      --------------------
its entirety to read as follows:

                           (ii) Maintain EBITDA, at all times, of not less
                  than the amounts set forth below, calculated quarterly for
                  the preceding twelve-month period on a trailing twelve
                  month basis:

                                     2

<PAGE>
<PAGE>

                           PERIOD                            AMOUNT
                           ------                            ------

                           June 30, 2003 through
                           September 29, 2004                $40,000,000
                           September 30, 2004 and at all
                           times thereafter                  $50,000,000

                  (f) A new Paragraph 8.2(iv) is hereby added to the
                            -----------------
Agreement to read as follows:

                           (iv) Maintain a Fixed Charge Coverage Ratio of
                  not less than 3.75:1.0, calculated quarterly for the
                  preceding twelve month period on a trailing twelve month
                  basis.

                  (g) A new Paragraph 8.2(g)(v) is hereby added to the
                            -------------------
Agreement to read in its entirety as follows:

                  (v) Maintain a Senior Leverage Ratio, at all times, of not
                  greater than 1.50:1.0.

                  (h) Paragraph 9.1 is hereby amended by deleting the word
                      -------------
"or" occurring at the end of subsection (l), replacing the period occurring
at the end of subsection (m) with "; or" and adding the following new
subsection (n) thereto:

                  (n) Borrowers amend any of the provisions contained in any
                  indenture or other agreement governing the subordination
                  terms of any Subordinated Debt without the prior written
                  consent of the Bank.

         3. Representations, Covenants and Warranties; No Default. The
            -----------------------------------------------------
representations, covenants and warranties set forth in Paragraph 8 of the
                                                       -----------
Agreement shall be deemed remade as of the date hereof by each Borrower,
except that any and all references to the Agreement in such representations
and warranties shall be deemed to include this Amendment. No Event of
Default has occurred and is continuing and no event has occurred and is
continuing which, with the lapse of time, the giving of notice, or both,
would constitute such an Event of Default under the Agreement.

         4. Fees and Expenses. The Borrowers agree to pay on demand all
            -----------------
costs and expenses of or incurred by Bank in connection with the evaluation,
negotiation, preparation, execution and delivery of this Amendment and the
other instruments and documents executed and delivered in connection with
the transactions described herein (including the filing or recording
thereof), including, but not limited to, the fees and expenses of counsel
for the Bank and any future amendments to the Agreement.

         5. Delivery of Documents. Notwithstanding any of the foregoing,
            ---------------------
prior to entering into this Amendment, Bank shall have received from
Borrowers the following fully executed documents, in form and substance
satisfactory to Bank, and all of the transactions contemplated by each such
document shall have been consummated or each condition contemplated by each
such document shall have been satisfied:

                                     3

<PAGE>
<PAGE>

                  (a) Eighth Amendment to Loan Agreement;

                  (b) Officer's Certificate of each Borrower; and

                  (c) Such other documents, opinions or certificates as Bank
                      may reasonably request.

         6. Effectuation. The amendments to the Agreement contemplated by
            ------------
this Amendment shall be deemed effective immediately upon the full execution
of this Amendment and without any further action required by the parties
hereto. There are no conditions precedent or subsequent to the effectiveness
of this Amendment.

         7. Counterparts. This Amendment may be executed in two or more
            ------------
counterparts, each of which shall be deemed an original, and all of which
together shall constitute one and the same instrument.

                          [SIGNATURE PAGE FOLLOWS]

                                     4

<PAGE>
<PAGE>

                    (SIGNATURE PAGE TO EIGHTH AMENDMENT)

         IN WITNESS WHEREOF, the parties hereto have duly executed this
Eighth Amendment to Loan Agreement as of the date first above written.

                                       K-V PHARMACEUTICAL COMPANY

                                       By: /s/ Gerald R. Mitchell
                                       Its:_________________________________

                                       ETHEX CORPORATION

                                       By:__________________________________
                                       Its:_________________________________

                                       PARTICLE DYNAMICS, INC.

                                       By:__________________________________
                                       Its:_________________________________

                                       THER-RX CORPORATION

                                       By:__________________________________
                                       Its:_________________________________

                                       LASALLE BANK NATIONAL ASSOCIATION

                                       By: /s/ Michael Barnett
                                       Its:_________________________________

                                     5

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