Document:

EXHIBIT 10.3
                                                                    ------------

                       FIRST AMENDMENT TO CREDIT AGREEMENT

         THIS FIRST AMENDMENT TO CREDIT AGREEMENT (this "Amendment"), dated as
of December 22, 2004, 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
Persons identified as lenders on the signature pages hereto (the "Lenders") 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 have entered
into that certain Credit Agreement dated as of February 26, 2004 (the "Credit
Agreement");

         WHEREAS, the Borrower has requested that the Lenders amend the Credit
Agreement as provided herein; 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 (as amended hereby).

                                     PART II
                         AMENDMENTS TO CREDIT AGREEMENT

         SUBPART 2.1 Section 8.3 of the Credit Agreement is hereby amended and
restated in its entirety to read as follows:

                  No Credit Party will, nor will it permit its Subsidiaries to,
         alter the character of its business from that conducted as of the
         Closing Date or engage in any business other than the business
         conducted as of the Closing Date, which with respect to Signal shall be
         limited to the ownership of trademarks and tradenames for the purpose
         of licensing (a) any or all of such trademarks and tradenames to the
         Borrower or any other Credit Party and (b) any or all of such
         trademarks and tradenames that are not registered in the United States
         or Canada to any Foreign Subsidiary of the Borrower.

         SUBPART 2.2 Section 8.5 of the Credit Agreement is hereby amended and
restated in its entirety to read as follows:

                  No Credit Party will, nor will it permit any of its
         Subsidiaries to, convey, sell, lease, transfer or otherwise dispose of,
         in one transaction or a series of transactions, all or any part of its
         business or assets whether now owned or hereafter acquired, including,
         without limitation, inventory, receivables, real property, leasehold
         interests, equipment and securities other than (a) any inventory or
         other assets sold, leased or disposed of (or simultaneously replaced
         with like goods) in
<PAGE>

         the ordinary course of business, (b) obsolete, idle or worn-out assets
         no longer used or useful in its business, (c) the sale, lease or
         transfer or other disposal by a Credit Party other than the Borrower of
         any or all of its assets to the Borrower or to any other Credit Party,
         (d) the sale, transfer or other disposition of "margin stock" within
         the meaning of Regulation U, (e) the non-recourse sale of trade
         accounts receivable to a Person that is not an Affiliate of the
         Borrower provided that (i) at the time of the sale (and after giving
         effect thereto) no Default or Event of Default exists, (ii) as a result
         of such sale, no Material Adverse Effect would occur or be reasonably
         expected to occur, and (iii) the amount of such receivables subject to
         such sales do not exceed, in the aggregate, $7,000,000 at any time
         outstanding, (f) other sales of equipment provided that (i) the sale is
         for fair market value, (ii) the sale is for cash consideration, (iii)
         at the time of the sale (and after giving effect thereto) no Default or
         Event of Default exists, (iv) as a result of such sale, no Material
         Adverse Effect would occur or be reasonably expected to occur and (v)
         such sales do not exceed, in the aggregate, $250,000 during any fiscal
         year, (g) sales of product lines (or the right to produce a consumer
         product or products) provided that (i) the dispositions permitted under
         this subparagraph (g) shall not exceed $10,000,000 during any fiscal
         year and, (ii) the dispositions permitted under this subparagraph (g)
         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 twelve-month period ending on the fiscal quarter ending immediately
         preceding the sale in an aggregate amount not exceeding ten percent
         (10%) of EBITDA for such twelve month period and (iii) 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, (h) the transfer by the Borrower
         of the Capital Stock of Chattem (U.K.) Limited to Chattem Global
         Consumer Products Limited and (i) the sale, lease or transfer or other
         disposal by a Foreign Subsidiary of the Borrower of any or all of its
         assets to any other Foreign Subsidiary of the Borrower.

         SUBPART 2.3 Section 8.8 of the Credit Agreement is hereby amended and
restated in its entirety to read as follows:

                  No Credit Party will, nor will it permit its Subsidiaries to,
         enter into any transaction or series of transactions, whether or not in
         the ordinary course of business, with any officer, director,
         shareholder, Subsidiary or Affiliate other than on terms and conditions
         substantially as favorable as would be obtainable in a comparable
         arm's-length transaction with a Person other than an officer, director,
         shareholder, Subsidiary or Affiliate except for (a) transactions set
         forth on Schedule 8.8 and (b) intercompany transactions that are
         otherwise permitted by this Credit Agreement.

                                    PART III
                           CONDITIONS TO EFFECTIVENESS

         SUBPART 3.1 Effective Date. This Amendment shall be and become
effective as of November 1, 2004, subject to the satisfaction of the following
conditions:

                  (a) Execution of Counterparts of Amendment. The Agent shall
         have received counterparts of this Amendment, which collectively shall
         have been duly executed on behalf of the Borrower, the Guarantors, the
         Required Lenders and the Agent.

                  (b) Fees and Expenses. The Borrower shall have paid to the
         Agent, all reasonable costs and expenses of the Agent in connection
         with the preparation, execution and delivery of this Amendment,
         including without limitation the reasonable fees and expenses of the
         Agent's legal counsel.

                                       2
<PAGE>

                                     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 under the Credit Agreement or any of the other Credit
Documents on and as of the date 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 is 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 Instrument Pursuant to Credit Agreement. This Amendment is
a Credit Document executed pursuant to the Credit Agreement and shall (unless
otherwise expressly indicated therein) be construed, administered and applied in
accordance with the terms and provisions of the Credit Agreement.

         SUBPART 4.5 References in Other Credit Documents. At such time as this
Amendment shall become effective pursuant to the terms of Subpart 3.1, all
references in the Credit Documents to the "Credit Agreement" shall be deemed to
refer to the Credit Agreement as amended by this Amendment.

         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 the 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 TENNESSEE.

         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.

         SUBPART 4.9 General. Except as amended hereby, the Credit Agreement and
all other Credit Documents shall continue in full force and effect.

            [The remainder of this page is intentionally left blank.]

                                       3
<PAGE>

         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:
                                          --------------------------------------
                                       Name:
                                            ------------------------------------
                                       Title:
                                             -----------------------------------

GUARANTORS:                            SIGNAL INVESTMENT & MANAGEMENT CO.,
----------                             a Delaware corporation

                                       By:
                                          --------------------------------------
                                       Name:
                                            ------------------------------------
                                       Title:
                                             -----------------------------------

                                       SUNDEX, LLC,
                                       a Tennessee limited liability company

                                       By:
                                          --------------------------------------
                                       Name:
                                            ------------------------------------
                                       Title:
                                             -----------------------------------

                                       CHATTEM (CANADA) HOLDINGS, INC.,
                                       a Delaware corporation

                                       By:
                                          --------------------------------------
                                       Name:
                                            ------------------------------------
                                       Title:
                                             -----------------------------------

                                       4
<PAGE>

AGENT:                                 BANK OF AMERICA, N.A.,
-----                                  in its capacity as Agent

                                       By:
                                          --------------------------------------
                                       Name:
                                            ------------------------------------
                                       Title:
                                             -----------------------------------

LENDERS:                               BANK OF AMERICA, N.A.,
-------                                in its capacity as a Lender

                                       By:
                                          --------------------------------------
                                       Name:  John M. Hall
                                       Title:    Senior Vice President

                                       SUNTRUST BANK

                                       By:
                                          --------------------------------------
                                       Name:
                                            ------------------------------------
                                       Title:
                                             -----------------------------------

                                       BRANCH BANKING AND TRUST

                                       By:
                                          --------------------------------------
                                       Name:
                                            ------------------------------------
                                       Title:
                                             -----------------------------------

                                       NATIONAL CITY BANK

                                       By:
                                          --------------------------------------
                                       Name:
                                            ------------------------------------
                                       Title:
                                             -----------------------------------

                                       5EXHIBIT 10.4
                                                                    ------------

                 WAIVER AND SECOND AMENDMENT TO CREDIT AGREEMENT

     THIS WAIVER AND SECOND AMENDMENT TO CREDIT AGREEMENT (this "Amendment")
dated as of February 25, 2005 to the Credit Agreement, dated as of February 26,
2004, as amended by a First Amendment to Credit Agreement dated as of December
22, 2004 (collectively the "Credit Agreement") by and among CHATTEM, INC. (the
"Borrower"), SIGNAL INVESTMENT & MANAGEMENT CO., SUNDEX, LLC AND CHATTEM
(CANADA) HOLDINGS, INC. (individually, a "Guarantor" and collectively, the
"Guarantors") the several bank parties to the Credit Agreement (the "Lenders"),
and BANK OF AMERICA, N.A., as the Agent (in such capacity, the "Agent") for all
the Lenders party to the Credit Agreement.

                                R E C I T A L S:

     WHEREAS, the Agent, the Lenders, the Borrower and the Guarantors are
parties to the Credit Agreement;

     WHEREAS, the Borrower and the Guarantors have requested certain amendments
to the Credit Agreement and a waiver of certain provisions of the Credit
Agreement as set forth herein.

     NOW, THEREFORE, in consideration of the premises set forth above, the terms
and conditions contained herein, and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto
agree as follows:

     1.   DEFINITIONS. Unless otherwise defined herein, capitalized terms that
are defined in the Credit Agreement are used herein as therein defined.

     2.   WAIVER. Subject to the complete satisfaction of all of the conditions
set forth in Section 4 below and subject to the other terms herein, the Agent
and the Lenders for the period beginning on February 26, 2004 and ending on the
Effective Date (as defined below) hereby waive any Default or Event of Default
which has occurred or which now exists as a result of the failure of Borrower
and the Guarantors to be in compliance with Section 8.6, Advances, Investments
and Loans of the Credit Agreement because a Subsidiary of the Borrower, HBA
Indemnity Company, Ltd., owns securities in the amount of $1,210,000 issued or
guaranteed by the United States of America or an agency or instrumentality
thereof with maturities of more than twelve months from the date of acquisition.
The foregoing waiver is limited to the matters set forth in this Section 2 and
no provision of this Section 2 shall be deemed in any way to constitute a waiver
of (except as otherwise set forth in this Section 2) (i) any Default or any
Event of Default, (ii) any condition precedent, (iii) any other term or
provision of the Credit Agreement or the other Credit Documents, or (iv) any
right, power or remedy available to Agent or any Lender. The Agent and each
Lender reserve all of their rights, powers and remedies under law, the Credit
Agreement and all other Credit Documents.
<PAGE>
     3.   AMENDMENTS. Subject to the complete satisfaction of all of the
conditions set forth in Section 4 below and subject to the other terms herein:

     3.1  Subpart (a) of the definition of "Cash Equivalents" in Subsection 1.1
of the Credit Agreement is amended and restated in its entirety as follows:

          (a) securities issued or directly and fully guaranteed or insured by
          the United States of America or any agency or instrumentality thereof
          (provided that the full faith and credit of the United States of
          America is pledged in support thereof) having maturities of not more
          than twelve-months from the date of acquisition, provided that solely
          with respect to HBA Indemnity Company, Ltd ("HBA") such securities of
          a type described in this subpart (a) owned by HBA may have maturities
          of not more than twenty-four months from the date of acquisition,"

     4.   CONDITIONS. This Amendment shall become effective upon the date (the
"Effective Date") when the Agent shall have received (i) counterparts of this
Agreement duly executed and delivered by the Borrower, each Guarantor and each
Lender (ii) each other document or instrument required to be delivered hereunder
and (iii) the Borrower shall have paid to the Agent, all reasonable costs and
expenses of the Agent in connection with the preparation, execution and delivery
of this Amendment, including without limitation the reasonable fees and expenses
of the Agent's legal counsel.

     5.   REPRESENTATIONS, WARRANTIES AND AGREEMENTS. Each Credit Party hereby
represents and warrants to, and agrees with, the Agent and the Lenders that:

     5.1  No Default or Event of Default shall have occurred and be continuing
on the Effective Date or after giving effect to the transactions contemplated
herein.

     5.2  Each of the representations and warranties made by the Credit Parties
in or pursuant to the Credit Documents shall be true and correct in all material
respects on and as of the Effective Date (after giving effect hereto) as if made
on and as of such date, except to the extent such representations and warranties
expressly relate to a particular date, in which case such representations and
warranties were true and correct in all material respects as of such date.

     5.3  Each Credit Party has the requisite corporate power and authority to
execute, deliver and perform this Amendment.

     5.4  Each of the Credit Parties hereby consents to this Amendment and
further hereby reaffirm, ratify and confirm all covenants, representations and
warranties made in the Credit Agreement, and all other Credit Documents to which
it is a party (after giving effect hereto), all of which continues in full force
and effect. Without limitation of the foregoing, each Credit Party hereby
grants, and reaffirms the grant, of a security interest by such Obligor in favor
of the Agent in the Collateral under the Collateral Documents.

     6.   REFERENCE TO AGREEMENTS.

     6.1  On and after the Effective Date, (a) each reference in the Credit
Agreement, respectively, to "this Agreement," "hereunder," "hereof," "herein,"
or words of like import shall mean and be a reference to the Credit Agreement,
as amended hereby, and (b) each

                                       -2-
<PAGE>
reference to the Credit Agreement in all other Credit Documents shall mean and
be a reference to the Credit Agreement, as amended hereby.

     6.2  Except as otherwise provided herein, all Credit Documents, and all
other documents, instruments and agreements executed and/or delivered in
connection therewith, shall remain in full force and effect, and are hereby
ratified and confirmed.

     6.3  Except as specifically stated herein, the execution, delivery and
effectiveness of this Agreement shall not operate as an amendment to any
provision of the Credit Agreement, nor a waiver of, or consent to any departure
from, any right, power or remedy of Agent or any Lender, nor constitute a waiver
of, or consent to any departure from, any provision of the Credit Agreement or
any of the other Credit Documents.

     6.4  This Agreement shall be deemed a Credit Document for the purposes of
the Credit Agreement.

     7.   GOVERNING LAW. This Agreement shall be governed by and construed in
accordance with the internal laws of the State of Tennessee.

     8.   HEADINGS. Section headings in this Agreement are included herein for
convenience of reference only and shall not constitute a part of this Agreement
for any other purpose.

     9.   COUNTERPARTS. This Agreement may be executed by one or more of the
parties to this Agreement on any number of separate counterparts and all of said
counterparts taken together shall be deemed to constitute one and the same
instrument. Delivery by any party of telecopied copies of executed counterparts
hereof shall constitute execution and delivery hereof by such party.

                            [SIGNATURE PAGES FOLLOW]

                                       -3-
<PAGE>
     IN WITNESS WHEREOF, this Waiver and Second Amendment has been duly executed
as of the day and year first above written.

BORROWER:                            CHATTEM, INC.

                                     By: _________________________________
                                     Name: _______________________________
                                     Title: ______________________________

GUARANTORS:                          SIGNAL INVESTMENT & MANAGEMENT CO.,
                                     a Delaware corporation

                                     By: _________________________________
                                     Name: _______________________________
                                     Title: ______________________________

                                     SUNDEX, LLC,
                                     a Tennessee limited liability company

                                     By: _________________________________
                                     Name: _______________________________
                                     Title: ______________________________

                                     CHATTEM (CANADA) HOLDINGS, INC.,
                                     a Delaware corporation

                                     By: _________________________________
                                     Name: _______________________________
                                     Title: ______________________________

AGENT:                               BANK OF AMERICA, N.A.,
                                     in its capacity as Agent

                                     By: _________________________________
                                     Name: _______________________________
                                     Title: ______________________________
<PAGE>

LENDERS:                             BANK OF AMERICA, N.A.,
                                     in its capacity as a Lender, including
                                     as Issuing Lender and Swing Line Lender

                                     By: _________________________________
                                     Name: _______________________________
                                     Title: ______________________________

                                     NATIONAL CITY BANK,
                                     in its capacity as a Lender

                                     By: _________________________________
                                     Name: _______________________________
                                     Title: ______________________________

                                     SUNTRUST BANK, in its capacity as a Lender

                                     By: _________________________________
                                     Name: _______________________________
                                     Title: ______________________________

                                     BRANCH BANKING AND TRUST,
                                     in its capacity as a Lender

                                     By: _________________________________
                                     Name: _______________________________
                                     Title: ______________________________

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