Document:

EX-10.16

EXHIBIT 10.16

*Certain portions of this exhibit have been omitted pursuant to a request for confidential

treatment which has been filed separately with the SEC.

 

THIRD AMENDED AND RESTATED

LOAN AGREEMENT

December 30, 2008

by and between

CUMBERLAND PHARMACEUTICALS, INC.,

as the Borrower

and

BANK OF AMERICA, N.A.,

as the Bank

 

$ 12,500,000

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	1. FACILITY NO. 1: LINE OF CREDIT AMOUNT AND TERMS
	 	 	1	 
	1.1 Line of Credit Amount 
	 	 	1	 
	1.2 Availability Period 
	 	 	1	 
	1.3 Interest Rate 
	 	 	2	 
	1.4 Repayment Terms 
	 	 	2	 
	 
	 	 	 	 
	2. FACILITY NO. 2: TERM LOAN AMOUNT AND TERMS
	 	 	3	 
	2.1 Loan Amount 
	 	 	3	 
	2.2 Availability Period 
	 	 	3	 
	2.3 Interest Rate 
	 	 	3	 
	2.4 Repayment Terms 
	 	 	3	 
	2.5 Prepayments 
	 	 	3	 
	 
	 	 	 	 
	3. FEES AND EXPENSES
	 	 	3	 
	3.1 Fees 
	 	 	3	 
	3.2 Expenses 
	 	 	4	 
	3.3 Reimbursement Costs 
	 	 	4	 
	 
	 	 	 	 
	4. COLLATERAL
	 	 	4	 
	4.1 Personal Property 
	 	 	4	 
	 
	 	 	 	 
	5. DISBURSEMENTS, PAYMENTS AND COSTS
	 	 	5	 
	5.1 Disbursements and Payments 
	 	 	5	 
	5.2 Telephone and Telefax Authorization 
	 	 	5	 
	5.3 Direct Debit (Pre-Billing) 
	 	 	5	 
	5.4 Banking Days 
	 	 	6	 
	5.5 Interest Calculation 
	 	 	6	 
	5.6 Default Rate 
	 	 	6	 
	 
	 	 	 	 
	6. CONDITIONS
	 	 	6	 
	6.1 Authorizations and Incumbency 
	 	 	7	 
	6.2 Governing Documents 
	 	 	7	 
	6.3 CET Intercompany Debt 
	 	 	7	 
	6.4 Security Agreements 
	 	 	7	 
	6.5 Perfection and Evidence of Priority 
	 	 	7	 
	6.6 Payment of Fees 
	 	 	7	 
	6.7 Good Standing 
	 	 	8	 
	6.8 Legal Opinion 
	 	 	8	 
	6.9 Financial Statements 
	 	 	8	 
	6.10 Insurance 
	 	 	8	 
	6.11 Consents, Licenses, Permits, Assignments 
	 	 	8	 
	6.12 Liquidity 
	 	 	8	 
	6.13 Representations, Warranties and No Default 
	 	 	8	 
	6.14 Other Required Documentation 
	 	 	8	 
	 
	 	 	 	 
	7. REPRESENTATIONS AND WARRANTIES
	 	 	9	 
	7.1 Formation 
	 	 	9	 
	7.2 Authorization 
	 	 	9	 
	7.3 Enforceable Agreements 
	 	 	9	 
	7.4 Good Standing 
	 	 	9	 

i

 

	 	 	 	 	 
	7.5 No Conflicts 
	 	 	9	 
	7.6 Financial Information 
	 	 	9	 
	7.7 Lawsuits 
	 	 	9	 
	7.8 Collateral 
	 	 	9	 
	7.9 Permits, Franchises 
	 	 	10	 
	7.10 Other Obligations 
	 	 	10	 
	7.11 Tax Matters 
	 	 	10	 
	7.12 No Event of Default 
	 	 	10	 
	7.13 Insurance 
	 	 	10	 
	7.14 Location of Borrower 
	 	 	10	 
	7.15 Capitalization 
	 	 	10	 
	7.16 Material Adverse Change 
	 	 	11	 
	7.17 Subsidiaries 
	 	 	11	 
	 
	 	 	 	 
	8. COVENANTS
	 	 	11	 
	8.1 Use of Proceeds 
	 	 	11	 
	8.2 Financial Information 
	 	 	11	 
	8.3 Leverage Ratio 
	 	 	13	 
	8.4 Fixed Charge Coverage Ratio 
	 	 	13	 
	8.5 Liquidity 
	 	 	13	 
	8.6 Capital Expenditures 
	 	 	13	 
	8.7 Lease Expenditures 
	 	 	13	 
	8.8 Restricted Payments 
	 	 	13	 
	8.9 Bank as Principal Depository 
	 	 	14	 
	8.10 Other Debts 
	 	 	14	 
	8.11 Other Liens 
	 	 	15	 
	8.12 Maintenance of Assets 
	 	 	15	 
	8.13 Investments 
	 	 	15	 
	8.14 Loans 
	 	 	15	 
	8.15 Additional Negative Covenants 
	 	 	16	 
	8.16 Notices to Bank 
	 	 	16	 
	8.17 Insurance 
	 	 	16	 
	8.18 Compliance with Laws 
	 	 	17	 
	8.19 ERISA Plans 
	 	 	17	 
	8.20 Books and Records 
	 	 	17	 
	8.21 Visits, Inspections and Audits 
	 	 	17	 
	8.22 Perfection of Liens 
	 	 	17	 
	8.23 Cooperation 
	 	 	17	 
	8.24 Collateral Account Notification and Acknowledgement 
	 	 	17	 
	8.25 Subsidiaries 
	 	 	18	 
	8.26 Change of Management 
	 	 	18	 
	 
	 	 	 	 
	9. HAZARDOUS SUBSTANCES
	 	 	18	 
	9.1 Indemnity Regarding Hazardous Substances 
	 	 	18	 
	9.2 Compliance Regarding Hazardous Substances 
	 	 	18	 
	9.3 Notices Regarding Hazardous Substances 
	 	 	18	 
	9.4 Site Visits, Observations and Testing 
	 	 	18	 
	9.5 Definition of Hazardous Substances 
	 	 	19	 
	9.6 Continuing Obligation 
	 	 	19	 
	 
	 	 	 	 
	10. DEFAULT AND REMEDIES
	 	 	19	 
	10.1 Failure to Pay 
	 	 	19	 
	10.2 Other Bank Agreements 
	 	 	20	 
	10.3 Cross-Default 
	 	 	20	 
	10.4 False Information 
	 	 	20	 
	10.5 Bankruptcy 
	 	 	20	 

ii

 

	 	 	 	 	 
	10.6 Receivers 
	 	 	20	 
	10.7 Lien Priority 
	 	 	20	 
	10.8 Lawsuits 
	 	 	20	 
	10.9 Judgments 
	 	 	20	 
	10.10 Death 
	 	 	20	 
	10.11 Material Adverse Change 
	 	 	21	 
	10.12 Government Action 
	 	 	21	 
	10.13 Default Under Related Documents 
	 	 	21	 
	10.14 Other Breach Under Agreement 
	 	 	21	 
	10.15 Change in Control 
	 	 	21	 
	 
	 	 	 	 
	11. ENFORCING THIS AGREEMENT; MISCELLANEOUS
	 	 	21	 
	11.1 GAAP 
	 	 	21	 
	11.2 Tennessee Law 
	 	 	21	 
	11.3 Successors and Assigns 
	 	 	21	 
	11.4 Interest and Loan Charges Not to Exceed Maximum Amounts Allowed by Law 
	 	 	22	 
	11.5 Arbitration and Waiver of Jury Trial 
	 	 	22	 
	11.6 Severability; Waivers 
	 	 	23	 
	11.7 Costs and Attorneys’ Fees 
	 	 	23	 
	11.8 Individual Liability 
	 	 	23	 
	11.9 One Agreement 
	 	 	23	 
	11.10 Indemnification 
	 	 	24	 
	11.11 Notices 
	 	 	24	 
	11.12 Headings 
	 	 	24	 
	11.13 Counterparts 
	 	 	24	 
	11.14 Existing Loan Agreement and Existing Loan Documents 
	 	 	24	 

Schedules

	 	 	 
	Schedule 7.7

	 	Litigation
	Schedule 8.10

	 	Liabilities
	Schedule 8.11

	 	Liens
	Schedule 8.14

	 	Loans/Extensions of Credit

iii

 

THIRD AMENDED AND RESTATED LOAN AGREEMENT

     THIS THIRD AMENDED AND RESTATED LOAN AGREEMENT (the “Agreement”) dated as of
December 30, 2008, is between BANK OF AMERICA, N.A., a national banking association (the
“Bank”) and CUMBERLAND PHARMACEUTICALS, INC., a Tennessee corporation (the
“Borrower”).

     WHEREAS, the Borrower and the Bank are parties to a certain Second Amended and Restated Loan
Agreement dated as of April 6, 2006, as amended by First Amendment to Second Amended and Restated
Loan Agreement dated December 31, 2006, between the Borrower and the Bank, by Second Amendment to
Second Amended and Restated Loan Agreement dated July 18, 2007, between the Borrower and the Bank,
and by Third Amendment to Second Amended and Restated Loan Agreement dated April 6, 2008, between
the Borrower and the Bank (collectively, the “Existing Loan Agreement”) and certain loan
documents listed on Schedule 1 hereto (the “Existing Loan Documents”);

     WHEREAS, at the Borrower’s request and in reliance upon the representations and inducements of
the Borrower set forth herein, the Bank has agreed to modify the terms and conditions of the
Existing Loan Agreement and to amend and restate the Existing Loan Agreement in its entirety as
more particularly hereinafter set forth; and

     WHEREAS, the Borrower and the Bank have agreed to amend or to amend and restate certain of the
Existing Loan Documents pursuant to the Loan Documents (as hereinafter defined);

     NOW, THEREFORE, in consideration of the Facility No. 1 Commitment and the Facility No. 2
Commitment described below (collectively, the “Facilities”), the mutual covenants and
agreements contained herein, and intending to be legally bound hereby, the Bank and the Borrower
agree as follows:

	1.	 	FACILITY NO. 1: LINE OF CREDIT AMOUNT AND TERMS
	 
	1.1	 	Line of Credit Amount.
	 
	(a)	 	Subject to and upon the terms, conditions and provisions of this Agreement, including but not
limited to Section 1.2 below, the Bank will provide a line of credit to the Borrower
in a principal amount not to exceed Seven Million Five Hundred Thousand Dollars ($7,500,000)
outstanding at any one time (the “Facility No. 1 Commitment”).
	 
	(b)	 	This is a revolving line of credit. During the availability period, the Borrower may repay
principal amounts and reborrow them, provided, however, that on the date of this Agreement,
Borrower shall borrow no more than $2,000,000 in the aggregate pursuant to the Facility No. 1
Commitment.
	 
	(c)	 	The Borrower agrees not to permit the principal balance outstanding to exceed the amount of
the Facility No. 1 Commitment. If the Borrower exceeds this limit, the Borrower will
immediately pay the excess to the Bank upon the Bank’s demand.
	 
	1.2	 	Availability Period.

The maximum availability under the Facility No. 1 Commitment shall be $2,000,000 from and after the
date of this Agreement until the day that is five (5) banking days after the date of this
Agreement. Thereafter, the maximum availability under the Facility No. 1 Commitment shall be
$7,500,000 until the third (3rd) anniversary of the date of this Agreement, or such
earlier date as the availability may terminate as provided in this Agreement (the “Facility
No. 1 Expiration Date”).

 

	1.3	 	Interest Rate.
	 
	(a)	 	The interest rate is a rate per year equal to the BBA LIBOR Daily Floating Rate plus the
Applicable Margin; provided, however, that in no event shall the interest payable in respect
of amounts advanced pursuant to the Facility No. 1 Commitment exceed the maximum amounts
collectible under applicable law from time to time.
	 
	(b)	 	The BBA LIBOR Daily Floating Rate is a fluctuating rate of interest equal to 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
selected by the Bank from time to time) as determined for each banking day at approximately
11:00 a.m. London time two (2) London Banking Days prior to the date in question, for U.S.
Dollar deposits (for delivery on the first day of such interest period) with a one month term,
as adjusted from time to time in the Bank’s sole discretion for reserve requirements, deposit
insurance assessment rates and other regulatory costs. If such rate is not available at such
time for any reason, then the rate for that interest period will be determined by such
alternate method as reasonably selected by the Bank. A “London Banking Day” is a day
on which banks in London are open for business and dealing in offshore dollars.
	 
	(c)	 	The “Applicable Margin” means and refers to the following percentages per annum,
based upon the Borrower’s Leverage Ratio as set forth in the most recent compliance
certificate received by the Lender pursuant to Section 8.2(c):

	 	 	 	 	 
	Pricing Level	 	Leverage Ratio	 	Applicable Margin
	1
	 	£ 1.00
	 	3.50%
	2
	 	> 1.00 but £ 1.50
	 	4.00%
	3
	 	> 1.50
	 	4.50%

	 	 	Any increase or decrease in the Applicable Margin resulting from a change in the
Borrower’s Leverage Ratio shall become effective as of the first banking day
immediately following the date a compliance certificate is delivered pursuant to
Section 8.2(c); provided, however, that if a compliance certificate is not
delivered when due in accordance with such Section, then Pricing Level 3 shall apply as
of the first banking day after the date on which such compliance certificate was
required to have been delivered. From the date of this Agreement through the first day
following the date hereof on which a compliance certificate is delivered to the Lender
pursuant to Section 8.2(c), the Applicable Rate shall be determined based upon Pricing
Level 2.
	 
	1.4	 	Repayment Terms.
	 
	(a)	 	The Borrower will pay interest on April 1, 2009 and on the first day of each July, October,
January and April thereafter until payment in full of any principal outstanding under this
facility.
	 
	(b)	 	The Borrower will repay in full any principal, interest or other charges outstanding under
this facility no later than the Facility No. 1 Expiration Date.
	 
	(c)	 	The Borrower may prepay this loan in full or in part at any time and from time to time,
without premium or penalty.

-2-

 

	2.	 	FACILITY NO. 2: TERM LOAN AMOUNT AND TERMS
	 
	2.1	 	Loan Amount.

Subject to and upon the terms, conditions and provisions of this Agreement, the Bank agrees to
provide a term loan to the Borrower in the amount of Five Million Dollars ($5,000,000.00) (the
“Facility No. 2 Commitment”).

	2.2	 	Availability Period.

On and as of the date of this Agreement, the amount currently outstanding under the Facility No. 2
Commitment pursuant to the Existing Loan Agreement is $916,660.00. The amount by which the
Facility No. 2 Commitment as set forth in Section 2.1 exceeds this amount is available in
one disbursement from the Bank on the date of this Agreement.

	2.3	 	Interest Rate.
	 
	(a)	 	The interest rate is a rate per year equal to the BBA LIBOR Daily Floating Rate plus the
Applicable Margin; provided, however, that in no event shall the interest payable in respect
of amounts advanced pursuant to the Facility No. 2 Commitment exceed the maximum amounts
collectible under applicable law from time to time.
	 
	(b)	 	The BBA LIBOR Daily Floating Rate and the Applicable Margin shall be determined as provided
in paragraphs (b) and (c) of Section 1.3.
	 
	2.4	 	Repayment Terms.
	 
	(a)	 	The Borrower will pay interest on April 1, 2009 and on the first day of each July, October,
January and April thereafter until payment in full of any principal outstanding under this
facility.
	 
	(b)	 	The Borrower will repay principal in equal consecutive installments in the amount of Four
Hundred Sixteen Thousand Six Hundred Sixty-Seven and No/100ths Dollars ($416,667.00) each
beginning on April 1, 2009 and continuing on the first day of each July, October, January and
April thereafter until the third (3rd) anniversary of the date of this Agreement
(the “Repayment Period”). In any event, on the last day of the Repayment Period, the
Borrower will repay the entire remaining principal balance plus any interest or other charges
outstanding under this facility.
	 
	2.5	 	Prepayments.

The Borrower may prepay this loan in full or in part at any time and from time to time, without
premium or penalty. The Borrower will give the Bank irrevocable written notice of the Borrower’s
intention to make the prepayment, specifying the date and amount of the prepayment. The notice
must be received by the Bank at least five (5) banking days in advance of the prepayment. The
prepayment will be applied to the most remote payment of principal due under this Agreement in
respect of the Facility No. 2 Commitment.

	3.	 	FEES AND EXPENSES
	 
	3.1	 	Fees.
	 
	(a)	 	Loan Fee. The Borrower agrees to pay a loan fee in the
amount of [***]. This fee is due and payable not later than the third
(3rd) banking day following the date of this Agreement.

-3-

 

	(b)	 	Unused Commitment Fee. The Borrower agrees to pay a fee on any difference between
the availability of the Facility No. 1 Commitment (as determined in accordance with
Section 1.2 hereof) and the amount of credit it actually uses, determined by the
average of the daily amount of credit outstanding during the specified period. The fee will
be calculated at 0.50% per year. The fee is due and payable on April 1, 2009 and on the first
day of each July, October, January and April thereafter until the expiration of the
availability period.
	 
	(c)	 	Warrants. The existing warrants to purchase capital stock of the Borrower that
heretofore have been issued to the Bank by the Borrower have been fully earned and continue in
full force and effect in all respects. The Borrower is not obligated to issue additional
warrants to the Bank in connection with this transaction.
	 
	3.2	 	Expenses.

Promptly, and in any event within ten (10) banking days after any demand by the Bank therefor, the
Borrower will repay the Bank for expenses that include, but are not limited to, filing, recording
and search fees, appraisal fees, title report fees and documentation fees.

	3.3	 	Reimbursement Costs.
	 
	(a)	 	Promptly, and in any event within ten (10) banking days after any demand by the Bank
therefor, the Borrower will reimburse the Bank for any expenses it incurs in the preparation
of this Agreement and any agreement or instrument required by this Agreement. Expenses
include, but are not limited to, reasonable attorneys’ fees, including any allocated costs of
the Bank’s in-house counsel to the extent permitted by applicable law.
	 
	(b)	 	Promptly, and in any event within ten (10) banking days after any demand by the Bank
therefor, the Borrower will reimburse the Bank for the cost of periodic field examinations of
the Borrower’s books, records and Collateral, and appraisals of the Collateral, at such
intervals as the Bank may reasonably require, but no less frequently than annually. The
actions described in this paragraph may be performed by employees of the Bank or by
independent appraisers.

	4.	 	COLLATERAL
	 
	4.1	 	Personal Property.

The personal property listed below now owned or owned in the future by the parties listed below
will secure the Borrower’s obligations to the Bank under this Agreement as indicated in the
security agreement. The collateral is further defined in security agreement(s) executed by the
owners of the collateral. In addition, all personal property collateral owned by the Borrower
securing this Agreement shall also secure all other present and future obligations of the Borrower
to the Bank (excluding any consumer credit covered by the federal Truth in Lending law, unless the
Borrower has otherwise agreed in writing or received written notice thereof). All personal
property collateral securing any other present or future obligations of the Borrower to the Bank
shall also secure this Agreement.

	(a)	 	Equipment and fixtures owned by the Borrower or any Obligor (as hereinafter defined).
	 
	(b)	 	Inventory owned by the Borrower or any Obligor.
	 
	(c)	 	Receivables owned by the Borrower or any Obligor.
	 
	(d)	 	Securities or other investment property owned by the Borrower or any Obligor as described in
one or more pledge agreements required by the Bank.

-4-

 

	 	 	Regulation U of the Board of Governors of the Federal Reserve System places certain
restrictions on loans secured by margin stock (as defined in the Regulation). The Bank and
the Borrower shall comply with Regulation U. If any of the collateral is margin stock, the
Borrower shall provide to the Bank a Form U-1 Purpose Statement.
	 
	(e)	 	Deposit accounts with the Bank and owned by the Borrower or any Obligor.
	 
	(f)	 	Patents, trademarks and other general intangibles owned by the Borrower or any Obligor.
	 
	(g)	 	The CET Pledged Note and the CET Security Agreement (as hereinafter defined).

As used herein, “Collateral” shall mean and refer to all property and interests in property
of the Borrower or any Obligor now or hereafter securing the indebtedness and other obligations of
the Borrower to the Bank in connection with the Facilities.

	5.	 	DISBURSEMENTS, PAYMENTS AND COSTS
	 
	5.1	 	Disbursements and Payments.
	 
	(a)	 	Each payment by the Borrower will be made in U.S. Dollars and immediately available funds by
direct debit to a deposit account as specified below or, for payments not required to be made
by direct debit, by mail to the address shown on the Borrower’s statement or at one of the
Bank’s banking centers in the United States.
	 
	(b)	 	Each disbursement by the Bank and each payment by the Borrower will be evidenced by records
kept by the Bank. In addition, the Bank may, at its discretion, require the Borrower to sign
one or more promissory notes.
	 
	5.2	 	Telephone and Telefax Authorization.
	 
	(a)	 	The Bank may honor telephone or telefax instructions for advances or repayments given, or
purported to be given, by any one of the individuals authorized to sign loan agreements on
behalf of the Borrower or any other individual designated by any one of such authorized
signers.
	 
	(b)	 	Advances will be deposited in and repayments will be withdrawn from account number 3782867788
owned by the Borrower, or such other of the Borrower’s accounts with the Bank as designated in
writing by the Borrower.
	 
	(c)	 	The Borrower will indemnify and hold the Bank harmless from all liability, loss, and costs in
connection with any act resulting from telephone or telefax instructions the Bank reasonably
believes are made by any individual authorized by the Borrower to give such instructions.
This paragraph will survive this Agreement’s termination, and will benefit the Bank and its
officers, employees, and agents.
	 
	5.3	 	Direct Debit (Pre-Billing).
	 
	(a)	 	The Borrower agrees that the Bank will debit account number 3782867788 owned by the Borrower,
or such other of the Borrower’s accounts with the Bank as designated in writing by the
Borrower (the “Designated Account”) on the date each payment of principal and interest
and any fees from the Borrower becomes due (the “Due Date”).
	 
	(b)	 	Prior to each Due Date, the Bank will mail to the Borrower a statement of the amounts that
will be due on that Due Date (the “Billed Amount”). The bill will be mailed a
specified number of calendar days prior to the Due Date, which number of days will be mutually
agreed from time to

-5-

 

	 	 	time by the Bank and the Borrower. The calculations in the bill will be made on the
assumption that no new extensions of credit or payments will be made between the date of the
billing statement and the Due Date, and that there will be no changes in the applicable
interest rate.
	 
	(c)	 	The Bank will debit the Designated Account for the Billed Amount, regardless of the actual
amount due on that date (the “Accrued Amount”). If the Billed Amount debited to the
Designated Account differs from the Accrued Amount, the discrepancy will be treated as
follows:

	 	(i)	 	If the Billed Amount is less than the Accrued Amount, the Billed Amount for the
following Due Date will be increased by the amount of the discrepancy. The Borrower
will not be in default by reason of any such discrepancy.
	 
	 	(ii)	 	If the Billed Amount is more than the Accrued Amount, the Billed Amount for the
following Due Date will be decreased by the amount of the discrepancy.

	 	 	Regardless of any such discrepancy, interest will continue to accrue based on the actual
amount of principal outstanding without compounding. The Bank will not pay the Borrower
interest on any overpayment.
	 
	(d)	 	The Borrower will maintain sufficient funds in the Designated Account to cover each debit.
If there are insufficient funds in the Designated Account on the date the Bank enters any
debit authorized by this Agreement, the Bank may reverse the debit.

	5.4	 	Banking Days.

Unless otherwise provided in this Agreement, a banking day is a day other than a Saturday, Sunday
or other day on which commercial banks are authorized to close, or are in fact closed, in the state
where the Bank’s lending office is located, and, if such day relates to amounts bearing interest at
an offshore rate (if any), means any such day on which dealings in dollar deposits are conducted
among banks in the offshore dollar interbank market. All payments and disbursements that would be
due on a day that is not a banking day will be due on the next banking day. All payments received
on a day that is not a banking day will be applied to the credit on the next banking day.

	5.5	 	Interest Calculation.

Except as otherwise stated in this Agreement, all interest and fees, if any, will be computed on
the basis of a 360-day year and the actual number of days elapsed. This results in more interest
or a higher fee than if a 365-day year is used. Installments of principal that are not paid when
due under this Agreement shall continue to bear interest until paid.

	5.6	 	Default Rate.

Upon the occurrence of any default or after maturity or after judgment has been rendered on any
obligation under this Agreement, all amounts outstanding under this Agreement, including any
interest, fees, or costs that are not paid when due, will at the option of the Bank bear interest
at a rate that is four percentage points (4.00%) higher than the rate of interest otherwise
provided under this Agreement. This may result in compounding of interest. This will not
constitute a waiver of any default.

	6.	 	CONDITIONS

Before the Bank is required to extend any credit to the Borrower under this Agreement, it must
receive any documents and other items it may reasonably require, in form and content acceptable to
the Bank, including any items specifically listed below.

-6-

 

	6.1	 	Authorizations and Incumbency.

If the Borrower is anything other than a natural person, evidence that the execution, delivery and
performance by the Borrower of this Agreement and any instrument or agreement required under this
Agreement have been duly authorized. A certificate of the secretary of the Borrower as to the
incumbency and signature of all officers of the Borrower authorized to execute or attest to any
instrument or agreement required under this Agreement.

	6.2	 	Governing Documents.

If required by the Bank, a copy of the Borrower’s organizational documents.

	6.3	 	CET Intercompany Debt.

Signed original promissory note executed by Cumberland Emerging Technologies, Inc. (“CET”)
and payable to the order of the Borrower, in the maximum principal amount of $1,500,000 evidencing
the now existing and hereafter arising indebtedness of CET to the Borrower and endorsed in blank by
the Borrower (together with any and all modifications, extensions and renewals thereof, the
“CET Pledged Note”).

Signed security agreement between CET and the Borrower (and/or a signed amendment to or
modification of the existing security agreement between CET and the Borrower), pursuant to which
CET grants to the Borrower a first priority security interest in CET’s property described therein,
such security agreement and/or amendment or modification to be in form and substance satisfactory
to the Bank (as the same may be amended, restated, supplemented, extended, modified, restructured,
renewed or replaced from time to time, the “CET Security Agreement”).

Assignment to the Bank to be of, and grant to the Bank of a security interest in, all of the
Borrower’s right, title an interest in and to the CET Pledged Note and the CET Security Agreement,
such assignment to be in form and substance satisfactory to the Bank.

	6.4	 	Security Agreements.

Signed original security agreements, including intellectual property security agreements, covering
the Collateral that the Bank requires. Such security agreements, together with this Agreement, any
notes, any warrants and all other instruments, documents and agreements from time to time
evidencing, securing or otherwise relating to the Facility No. 1 Commitment and the Facility No. 2
Commitment are hereinafter referred to as the “Loan Documents”.

	6.5	 	Perfection and Evidence of Priority.

Evidence that the security interests and liens in favor of the Bank are valid, enforceable,
properly perfected in a manner acceptable to the Bank and prior to all others’ rights and
interests, except those the Bank consents to in writing.

	6.6	 	Payment of Fees.

Payment of all fees and other amounts due and owing to the Bank, including without limitation
payment of all accrued and unpaid expenses incurred by the Bank as required by the paragraph
entitled “Reimbursement Costs.”

-7-

 

	6.7	 	Good Standing.

Certificates of good standing for the Borrower and CET from its state of formation and from any
other state in which the Borrower and CET is required to qualify to conduct its business.

	6.8	 	Legal Opinion.

A written opinion from the Borrower’s and CET’s legal counsel, covering such matters as the Bank
may require. The legal counsel and the terms of the opinion must be acceptable to the Bank.

	6.9	 	Financial Statements.

Detailed consolidated projections (including balance sheet, profit and loss statement and statement
of cash flow) by product line on an annual basis for fiscal years 2010 and 2011.

	6.10	 	Insurance.

Evidence of insurance coverage, as required in the “Covenants” section of this Agreement.

	6.11	 	Consents, Licenses, Permits, Assignments.

	(a)	 	Evidence satisfactory to the Bank that the Borrower has obtained all requisite consents and
approvals required to be obtained from any person to permit the transactions contemplated by
this Agreement and the other Loan Documents executed in connection herewith to be consummated
in accordance with their respective terms and conditions.
	 
	(b)	 	Evidence satisfactory to the Bank that Borrower and the Collateral are in compliance with all
applicable governmental requirements and that all permits, and any necessary licenses and
approvals have been obtained.
	 
	(c)	 	Evidence satisfactory to the Bank that Leo Pavliv has assigned to the Borrower the patent
rights to the pharmaceutical composition of 2-(4-isobutylphenyl) propionic acid.
	 
	6.12	 	Liquidity.

Evidence satisfactory to the Bank that the Borrower has a minimum liquidity of $4,000,000 in either
cash or cash equivalents acceptable to the Bank.

	6.13	 	Representations, Warranties and No Default.

Receipt by the Bank of a certificate of a properly authorized officer of the Borrower, stating that
(a) each of the representations and warranties contained herein is true and correct at and as of
the date hereof with the same force and effect as if made on such date and (b) no default hereunder
or under any of the other Loan Documents executed in connection therewith has occurred and is
continuing.

	6.14	 	Other Required Documentation.

All other documents, instruments, agreements, opinions, certificates, insurance policies, consents
and evidences of other legal matters, in form and substance satisfactory to the Bank and its
counsel, that are required by the terms of any term sheet or commitment of the Bank relating to the
credit that is the subject of this Agreement or that the Bank otherwise may reasonable request.

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	7.	 	REPRESENTATIONS AND WARRANTIES

When the Borrower signs this Agreement, and until the Bank is repaid in full, the Borrower makes
the following representations and warranties. Each request for an extension of credit constitutes
a renewal of these representations and warranties as of the date of the request:

	7.1	 	Formation.

If the Borrower or any Subsidiary is anything other than a natural person, it is duly formed and
existing under the laws of the state or other jurisdiction where organized.

	7.2	 	Authorization.

This Agreement, and any instrument or agreement required hereunder, are within the powers of the
Borrower or the applicable Obligor, have been duly authorized, and do not conflict with any of its
organizational papers.

	7.3	 	Enforceable Agreements.

This Agreement is a legal, valid and binding agreement of the Borrower, enforceable against the
Borrower in accordance with its terms, and any instrument or agreement required hereunder, when
executed and delivered by the Borrower or the applicable Obligor(s), will be similarly legal,
valid, binding and enforceable.

	7.4	 	Good Standing.

Each of the Borrower and its Subsidiaries is properly licensed, in good standing and, where
required, in compliance with fictitious name statutes in each jurisdiction in which it does
business.

	7.5	 	No Conflicts.

This Agreement does not conflict with any law, agreement, or obligation by which the Borrower or
any of its Subsidiaries is bound.

	7.6	 	Financial Information.

All financial and other information that has been or will be supplied to the Bank is sufficiently
complete to give the Bank accurate knowledge of the financial condition of the Borrower and its
Subsidiaries, including all material contingent liabilities. Since the date of the most recent
financial statement provided to the Bank, there has been no material adverse change in the business
condition (financial or otherwise), operations, properties or prospects of the Borrower or any of
its Subsidiaries.

	7.7	 	Lawsuits.

Except as disclosed in Schedule 7.7, there is no lawsuit, tax claim or other dispute
pending or threatened against the Borrower or any of its Subsidiaries that, if lost, would impair
the Borrower’s or any Obligor’s financial condition or ability to repay the Facilities.

	7.8	 	Collateral.

All Collateral required in this Agreement is owned by the grantor of the security interest free of
any title defects or any liens or interests of others, except (a) liens in existence on the date of
this Agreement and disclosed in Schedule 8.11 and (b) liens securing purchase money debt or
indebtedness arising under capitalized lease obligations permitted by this Agreement; provided,
however, that in each case any such

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liens shall attach only to the specific item(s) of property or asset(s) financed with such purchase
money debt or capitalized lease.

	7.9	 	Permits, Franchises.

Each of the Borrower and its Subsidiaries possesses all permits, memberships, franchises,
contracts, licenses required and all trademark rights, trade name rights, patent rights,
copyrights, and fictitious name rights necessary to enable it to conduct the business in which it
is now engaged.

	7.10	 	Other Obligations.

Neither the Borrower nor any Subsidiary is in default on any obligation for borrowed money, any
purchase money obligation or any other material lease, commitment, contract, instrument or
obligation, except as have been disclosed in writing to the Bank.

	7.11	 	Tax Matters.

The Borrower has no knowledge of any pending assessments or adjustments of its or any Subsidiary’s
income tax for any year and all taxes due have been paid, except as have been disclosed in writing
to the Bank.

	7.12	 	No Event of Default.

There is no event that is, or with notice or lapse of time or both would be, a default under this Agreement.

	7.13	 	Insurance.

The Borrower has obtained, and maintained in effect, the insurance coverage required in the
“Covenants” section of this Agreement.

	7.14	 	Location of Borrower.

The place of business of the Borrower and its Subsidiaries (or, if the Borrower and its
Subsidiaries have more than one place of business, their chief executive office) is located as
follows:

Cumberland Pharmaceuticals, Inc.

2525 West End Avenue, Suite 950

Nashville, Tennessee 37203

	7.15	 	Capitalization.

As of December 31, 2007, the authorized capital stock of the Borrower consists of (1) 100,000,000
shares of common stock, no par value per share (“Common Shares”), of which 10,091,260
shares (the “Outstanding Common Shares”) are issued and outstanding, and (2) 3,000,000
shares of preferred stock, no par value per share, of which 855,495 shares (the “Outstanding
Preferred Shares”) are issued and outstanding, and (3) under the Borrower’s amended 1999 Stock
Option Plan, 7,900,000 options convertible into Common Shares (“Options”) are authorized
for issuance, with 7,654,320 Options issued and outstanding, of which 7,451,410 Options are fully
vested and exercisable. All of the Outstanding Common Shares are duly authorized, validly issued
and outstanding and fully paid and nonassessable and free of preemptive rights. All of the
Outstanding Preferred Shares are duly authorized, validly issued and outstanding and fully paid and
nonassessable and are convertible into Common Shares.

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	7.16	 	Material Adverse Change.

Since December 31, 2007, no material adverse change has occurred on or in (a) the properties,
business, prospects, operations, management or financial condition of the Borrower and its
Subsidiaries, taken as a whole, or (b) the ability of the Borrower or any Obligor to perform any of
its obligations under this Agreement or the other Loan Documents to which it is a party.

	7.17	 	Subsidiaries.

As of the date of this Agreement, the Borrower has no Subsidiaries other than CET and Cumberland
Pharma Sales Corp., a Tennessee corporation (“CPSC”). As used herein, “Subsidiary”
of a person means a corporation, partnership, joint venture, limited liability company or other
business entity of which a majority of the shares of securities or other interests having ordinary
voting power for the election of directors or other governing body (other than securities or
interests having such power only by reason of the happening of a contingency) are at the time
beneficially owned, or the management of which is otherwise controlled, directly, or indirectly
through one or more intermediaries, or both, by such person. Unless otherwise specified, all
references herein to a “Subsidiary” or to “Subsidiaries” shall refer to a Subsidiary or
Subsidiaries of the Borrower.

	8.	 	COVENANTS

The Borrower agrees, so long as credit is available under this Agreement and until the Bank is
repaid in full:

	8.1	 	Use of Proceeds.
	 
	(a)	 	To use the proceeds of the Facility No. 1 Commitment only (i) to refinance the credit
facilities provided pursuant to the Existing Credit Agreement and for general operating and
working capital expenses and (ii) to extend credit to CET as permitted by this Agreement.
	 
	(b)	 	To use the proceeds of the Facility No. 2 Commitment only to refinance the credit facilities
provided pursuant to the Existing Credit Agreement and for general operating and working
capital expenses.
	 
	(c)	 	Notwithstanding the provisions of paragraphs (a) and (b) of this
Section 8.1, the Borrower may use proceeds of the Facilities to repurchase outstanding
shares of Borrower’s capital stock as permitted by this Agreement; provided that (a) the first
$916,660 of such purchases shall be made with Borrower’s cash on hand on the date of this
Agreement, and (b) not more than $4,083,340 of the proceeds of the Facilities may be used for
such repurchases.
	 
	(d)	 	In all events, the proceeds of the credit extended under this Loan Agreement may not be used
directly or indirectly to purchase or carry any “margin stock” as that term is defined in
Regulation U of the Board of Governors of the Federal Reserve System, or to extend credit to
or invest in other parties for the purpose of purchasing or carrying any such “margin stock,”
or to reduce or retire any indebtedness incurred for such purpose.

	8.2	 	Financial Information.

To provide the following financial information and statements in form and content acceptable to the
Bank, and such additional information as requested by the Bank from time to time:

	(a)	 	Within 150 days after the end of each fiscal year of the Borrower, the annual financial
statements of the Borrower, which shall include a balance sheet, profit and loss statement and
statement of cash flow, certified and dated by the chief executive or chief financial officer
of the Borrower.

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	 	 	These financial statements must be audited (with an opinion satisfactory to the Bank) by a
certified public accountant acceptable to the Bank. The statements shall be prepared on a
consolidated basis and include unaudited statements on a consolidating basis.
	 
	(b)	 	Within 60 days after the beginning of each fiscal year of the Borrower, (i) a copy of the
Borrower’s operating and capital expenditure budget for such fiscal year, certified and dated
by the chief executive or chief financial officer of the Borrower, and (ii) detailed
consolidated projections (including balance sheet, profit and loss statement and statement of
cash flow) by product line on a quarterly basis for that fiscal year and on an annual basis
for next two fiscal years.
	 
	(c)	 	Within 45 days after the end of each fiscal quarter of the Borrower (including the last
quarter in each fiscal year), quarterly financial statements of the Borrower, which shall
include a balance sheet, profit and loss statement and statement of cash flow. The profit and
loss statement and the statement of cash flow to be submitted under this subsection shall be
presented on a quarterly and a year-to-date basis, and the financial statements to be
submitted under this subsection shall include comparisons with the same period for the prior
year. These financial statements may be company-prepared. The statements shall be prepared
on a consolidated and consolidating basis. Such financial statements shall be dated and
certified by the chief executive or chief financial officer of the Borrower and accompanied by
a compliance certificate setting forth (i) the information and computations (in sufficient
detail) to establish that the Borrower is in compliance with all financial covenants at the
end of the period covered by the financial statements then being furnished and (ii) whether
there existed as of the date of such financial statements, and whether there exists as of the
date of the certificate, any default under this Agreement and, if any such default exists,
specifying the nature thereof and the action the Borrower is taking and proposes to take with
respect thereto. The compliance certificate shall be substantially in the form attached
hereto as Exhibit A.
	 
	(d)	 	Within 30 days after the end of each month (including the last month in each fiscal quarter
and in each fiscal year), monthly financial statements of the Borrower, which shall include a
balance sheet, profit and loss statement and statement of cash flow. The profit and loss
statement and the statement of cash flow to be submitted under this subsection shall be
presented on a monthly and a year-to-date basis, and the financial statements to be submitted
under this subsection shall include comparisons with the same period for the prior year.
These financial statements may be company-prepared. Such financial statements shall be dated
and certified by the chief executive or chief financial officer of the Borrower and
accompanied by a compliance certificate setting forth (i) the information and computations (in
sufficient detail) to establish that the Borrower is in compliance with all financial
covenants at the end of the period covered by the financial statements then being furnished
and (ii) whether there existed as of the date of such financial statements, and whether there
exists as of the date of the certificate, any default under this Agreement and, if any such
default exists, specifying the nature thereof and the action the Borrower is taking and
proposes to take with respect thereto. The compliance certificate shall be substantially in
the form attached hereto as Exhibit A.
	 
	(e)	 	Within 10 days of receipt or dispatch by the Borrower, copies of any management letters and
correspondence relating to management letters sent or received by the Borrower to or from the
Borrower’s auditor. If no management letter is prepared, the Bank may, in its discretion,
request a letter from such auditor stating that no deficiencies were noted that would
otherwise be addressed in a management letter.
	 
	(f)	 	Such additional financial information regarding the Borrower, CET and any guarantor,
accommodation party, pledgor, grantor or other obligor with respect to the Facilities (each
such guarantor, accommodation party, pledgor, grantor or other obligor being sometimes herein
referred to as an “Obligor”) as the Bank shall request.

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	8.3	 	Leverage Ratio.

To maintain on a consolidated basis a ratio of Funded Debt to EBITDA (“Leverage Ratio”) not
exceeding 2.00 to 1.00, calculated as of the end of each quarter-annual reporting period for which
the Bank requires financial statements, using the results of the twelve-month period ending with
the end of that reporting period. For purposes of this covenant:

“Funded Debt” means all outstanding liabilities for borrowed money and other
interest-bearing liabilities, including current and long term debt, capital lease obligations,
promissory notes, seller notes, letters of credit, if any, and any obligations guaranteed by the
Borrower.

“EBITDA” means net income after extraordinary losses and before extraordinary gains,
minus income or plus loss from discontinued operations, plus interest
expense, income taxes, depreciation and amortization expense, plus non-cash charges for
equity-based compensation expense. EBITDA will be calculated for the twelve-month period ending
with the end of each reporting period.

	8.4	 	Fixed Charge Coverage Ratio.

To maintain on a consolidated basis a Fixed Charge Coverage Ratio of at least 1.50 to1.00,
calculated as of the end of each quarter-annual reporting period for which the Bank requires
financial statements, using the results of the twelve-month period ending with the end of that
reporting period. For purposes of this covenant:

“Fixed Charge Coverage Ratio” means the ratio of (a) EBITDAR minus maintenance
capital expenditures in the amount of $50,000 per annum, minus cash income taxes,
minus Restricted Payments (excluding Restricted Payments permitted by paragraph (d)
of Section 8.8), to (b) the sum of interest expense, lease expense, rent expense and
scheduled principal payments on term debt and the current portion of capitalized lease obligations.

“EBITDAR” means the sum of EBITDA plus lease expense and rent expense.

	8.5	 	Liquidity.

To maintain Liquidity equal to at least $4,000,000 at all times. For purposes of this covenant:

“Liquidity” means (a) cash on hand or in deposit in banks and fully insured by federal
deposit insurance and (b) cash equivalents approved by Bank.

	8.6	 	Capital Expenditures.

Not to make or incur capital expenditures (excluding capital lease obligations) in an aggregate
amount in excess of $1,000,000 during any fiscal year.

	8.7	 	Lease Expenditures.

Not to incur obligations for operating leases of real or personal property requiring payments in an
aggregate amount in excess of $1,000,000 during any fiscal year.

	8.8	 	Restricted Payments.

Not to declare, make or pay any dividend or other distribution (whether in cash, securities or
other property) with respect to any capital stock or other equity interest of the Borrower or any
Subsidiary, or any payment (whether in cash, securities or other property), including any sinking
fund or similar deposit, on account of the acquisition, purchase, redemption, retirement,
cancellation or termination of any such

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capital stock or other equity interest or of any option, warrant or other right to acquire any such
capital stock or other equity interest (“Restricted Payments”) except:

	(a)	 	each Subsidiary may make Restricted Payments to the Borrower and to wholly-owned Subsidiaries
(and, in the case of a Restricted Payment by a non-wholly-owned Subsidiary, to the Borrower
and any Subsidiary and to each other owner of capital stock or other equity interests of such
Subsidiary on a pro rata basis based on their relative ownership interests);
	 
	(b)	 	the Borrower may declare and make dividend payments or other distributions payable solely in
the common stock or other common equity interests of such Person;
	 
	(c)	 	the Borrower and each Subsidiary may purchase, redeem or otherwise acquire shares of its
common stock or other common equity interests or warrants or options to acquire any such
shares with the proceeds received from the substantially concurrent issue of new shares of its
common stock or other common equity interests; and
	 
	(d)	 	within the period of ten (10) banking days following the date of this Agreement, the Borrower
may purchase, redeem or otherwise acquire shares of its capital stock for cash in an aggregate
amount not to exceed $5,000,000; provided, however, that (a) the first $916,660 of such
purchases shall be made with Borrower’s cash on hand on the date of this Agreement, and
(b) not more than $4,083,340 of the proceeds of the Facilities may be used for such
repurchases.
	 
	8.9	 	Bank as Principal Depository.

To maintain, and to cause each of its Subsidiaries to maintain, the Bank as its principal
depository bank, including for the maintenance of business, cash management, operating,
administrative, treasury management and investment accounts.

	8.10	 	Other Debts.

Not to have, or permit its Subsidiaries to have, outstanding or incur any direct or contingent
liabilities or lease obligations (other than those to the Bank), or become liable for the
liabilities of others, without the Bank’s written consent. This does not prohibit:

	(a)	 	Acquiring services, goods, supplies or merchandise on normal trade terms, including by
invoice or by accrual in accordance with GAAP.
	 
	(b)	 	Endorsing negotiable instruments received in the usual course of business.
	 
	(c)	 	Obtaining surety bonds in the usual course of business.
	 
	(d)	 	Liabilities, lines of credit and leases in existence on the date of this Agreement and
disclosed in Schedule 8.10.
	 
	(e)	 	Purchase money debt and capitalized lease obligations financed by the Borrower through
specific research grants to the Borrower for the development of pharmaceutical products in
connection with such obligations, and other purchase money debt and capitalized lease
obligations in an aggregate principal amount not exceeding $250,000 outstanding at any one
time.
	 
	(f)	 	The indebtedness evidenced by the CET Pledged Note.

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	8.11	 	Other Liens.

Not to create, assume, or allow any security interest or lien (including judicial liens) on
property the Borrower or any Subsidiary now or hereafter owns, except:

	(a)	 	Liens and security interests in favor of the Bank.
	 
	(b)	 	Liens for taxes not yet due.
	 
	(c)	 	Liens in existence on the date of this Agreement and disclosed in Schedule 8.11.
	 
	(d)	 	Liens securing purchase money debt or indebtedness arising under capitalized lease
obligations permitted by this Agreement; provided, however, that in each case any such liens
shall attach only to the specific item(s) of property or asset(s) financed with such purchase
money debt or capitalized lease.
	 
	(e)	 	Liens on property of CET pursuant to the CET Security Agreement.
	 
	8.12	 	Maintenance of Assets.

Not to sell, assign, lease, transfer or otherwise dispose of, or permit any Subsidiary to sell,
assign, lease, transfer or otherwise dispose of, any part of the Borrower’s or such Subsidiary’s
business or the Borrower’s or such Subsidiary’s assets except in the ordinary course of business of
the Borrower and its Subsidiaries.

	8.13	 	Investments.

Not to have or permit any Subsidiary to have any existing, or make or permit any Subsidiary to make
any new, investments in any individual or entity, or make or permit any Subsidiary to make any
capital contributions or other transfers of assets to any individual or entity, except for:

	(a)	 	Existing investments in CET (other than advances to CET described in Subsection
8.14(c)) disclosed to the Bank in writing.
	 
	(b)	 	Investments permitted by Section 8.14.
	 
	(c)	 	Investments in (i) U.S. treasury bills and other obligations of the federal government,
(ii) deposits maintained with Bank, (iii) deposits maintained with another bank and fully
covered by federal deposit insurance or otherwise fully insured by an agency or
instrumentality of the United States of America and backed by the full faith and credit of the
United States of America and (iv) cash equivalents approved by Bank.

	8.14	 	Loans.

Not to make any loans, advances or other extensions of credit to any individual or entity, except
for:

	(a)	 	Extensions of credit in existence on the date of this Agreement and disclosed in
Schedule 8.14.
	 
	(b)	 	Extensions of credit in the nature of accounts receivable or notes receivable arising from
the sale or lease of goods or services in the ordinary course of business to non-affiliated
entities.
	 
	(c)	 	Extensions of credit to CET in an aggregate amount not exceeding $1,500,000 outstanding at
any one time, provided that (i) extensions of credit by the Borrower to CET from the Facility
No. 1

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	 	 	Commitment shall not exceed $500,000 outstanding at any one time and (ii) such extensions of
credit are evidenced by the CET Pledged Note and secured by the CET Security Agreement.

	(d)	 	Advances to employees for business travel and other expenses incurred in the ordinary course
of business in an aggregate amount not exceeding $100,000 outstanding at any one time.
	 
	8.15	 	Additional Negative Covenants.

Not to, without the Bank’s written consent:

	(a)	 	Enter into any consolidation, merger, or other combination, or become a partner in a
partnership, a member of a joint venture, or a member of a limited liability company other
than CET.
	 
	(b)	 	Acquire or purchase a business or line of business or substantially all of the assets of a
business or line of business.
	 
	(c)	 	Change the general character of the business of the Borrower as conducted on the date of this
Agreement or engage in any business activities substantially different from the Borrower’s
present business.
	 
	(d)	 	Liquidate or dissolve the Borrower’s business.
	 
	8.16	 	Notices to Bank.

To promptly notify the Bank in writing of:

	(a)	 	Any lawsuit against the Borrower or any Subsidiary.
	 
	(b)	 	Any substantial dispute between any governmental authority on one hand and the Borrower or
any Subsidiary o the other hand.
	 
	(c)	 	Any event of default under this Agreement, or any event that, with notice or lapse of time or
both, would constitute an event of default.
	 
	(d)	 	Any material adverse change in the Borrower’s or any Subsidiary’s business condition
(financial or otherwise), operations, properties or prospects, or ability to repay the credit.
	 
	(e)	 	Any change in the Borrower’s or any Subsidiary’s name, legal structure, place of business, or
chief executive office if the Borrower or such Subsidiary has more than one place of business.
	 
	(f)	 	Any uninsured or partially uninsured loss of property of the Borrower or any Subsidiary
through fire, theft, liability or property damage in excess of $25,000.
	 
	8.17	 	Insurance.
	 
	(a)	 	General Business Insurance. To maintain insurance satisfactory to the Bank as to
amount, nature and carrier including property damage insurance (including loss of use and
occupancy) with respect to the Borrower’s or any Subsidiary’s properties, business
interruption insurance, public liability insurance including coverage for contractual
liability, product liability and workers’ compensation, and any other insurance that is usual
for the Borrower’s business. Each policy shall provide for at least thirty (30) days’ prior
notice to the Bank of any cancellation thereof.
	 
	(b)	 	Insurance Covering Collateral. To maintain all-risk property damage insurance
policies covering the tangible property comprising the Collateral. Each insurance policy must
be in an amount

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	 	 	acceptable to the Bank. The insurance must be issued by an insurance company acceptable to
the Bank and must include a lender’s loss payable endorsement in favor of the Bank in a form
acceptable to the Bank.
	 
	(c)	 	Evidence of Insurance. Upon the request of the Bank, to deliver to the Bank a copy
of each insurance policy, or, if permitted by the Bank, a certificate of insurance listing all
insurance in force and demonstrating compliance with the applicable provisions of this
Section.
	 
	8.18	 	Compliance with Laws.

To comply with the laws (including any fictitious or trade name statute), regulations, and orders
of any government body with authority over the Borrower’s business. The Bank shall have no
obligation to make any advance to the Borrower except in compliance with all applicable laws and
regulations and the Borrower shall fully cooperate with the Bank in complying with all such
applicable laws and regulations.

8.19 ERISA Plans.

Promptly during each year, to pay and cause any subsidiaries to pay contributions adequate to meet
at least the minimum funding standards under ERISA with respect to each and every Plan; file each
annual report required to be filed pursuant to ERISA in connection with each Plan for each year;
and notify the Bank within ten (10) days of the occurrence of any Reportable Event that might
constitute grounds for termination of any capital Plan by the Pension Benefit Guaranty Corporation
or for the appointment by the appropriate United States District Court of a trustee to administer
any Plan. “ERISA” means the Employee Retirement Income Security Act of 1974, as amended
from time to time. Capitalized terms in this paragraph shall have the meanings defined within
ERISA.

	8.20	 	Books and Records.

To maintain adequate books and records.

	8.21	 	Visits, Inspections and Audits.

To allow the Bank and its agents to visit and inspect the properties of the Borrower and its
Subsidiaries and examine, audit and make copies of books and records at any reasonable time. If
any of the properties, books or records of Borrower or a Subsidiary is in the possession of a third
party, the Borrower authorizes that third party to permit the Bank or its agents to have access to
perform inspections or audits and to respond to the Bank’s requests for information concerning such
properties, books and records.

	8.22	 	Perfection of Liens.

To help the Bank perfect and protect its security interests and liens, and reimburse it for related
costs it incurs to protect its security interests and liens.

	8.23	 	Cooperation.

To take, and cause its Subsidiaries to take, any action reasonably requested by the Bank to carry
out the intent of this Agreement.

	8.24	 	Collateral Account Notification and Acknowledgement.

To deliver to the Bank a signed original Collateral Account Notification and Acknowledgement
Agreement covering the Collateral in the account(s) described therein, in form and substance
acceptable to the Bank in its sole discretion, within a reasonable time following Bank’s request.

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	8.25	 	Subsidiaries.

Promptly (a) to cause any person that becomes a Subsidiary of the Borrower to become a guarantor of
the Facilities and to grant liens and security interests on its assets to secure the Facilities by
executing and delivering to the Bank such documents, instruments, agreements and certificates as
the Bank shall deem appropriate for such purposes and (b) to take such actions and execute and
deliver, or cause to be executed and delivered, such documents, instruments, agreements,
certificates and opinions as are necessary to confirm to the satisfaction of the Bank and its legal
counsel that such guaranty is valid and enforceable and that the security interests of the Bank in
the Collateral of such Subsidiary are valid and enforceable first-priority perfected security
interests. The provisions of this Section shall not apply to CET unless and until CET becomes a
direct or indirect wholly-owned Subsidiary of the Borrower, and the Borrower shall have a period of
thirty (30) days following the date of this Agreement to comply with the foregoing provisions as
they relate to CPSC.

	8.26	 	Change of Management.

Not to make any substantial change in its present executive or management personnel. A
“substantial change”, as used in this subsection, shall include, but not be limited to, the removal
or resignation of A.J. Kazimi as Chief Executive Officer.

	9.	 	HAZARDOUS SUBSTANCES
	 
	9.1	 	Indemnity Regarding Hazardous Substances.

The Borrower will indemnify and hold harmless the Bank from any loss or liability the Bank incurs
in connection with or as a result of this Agreement, that directly or indirectly arises out of the
use, generation, manufacture, production, storage, release, threatened release, discharge, disposal
or presence of a hazardous substance. This indemnity will apply whether the hazardous substance is
on, under or about the Borrower’s property or operations or property leased to the Borrower. The
indemnity includes but is not limited to attorneys’ fees (including the reasonable estimate of the
allocated cost of in-house counsel and staff). The indemnity extends to the Bank, its parent,
subsidiaries and all of their directors, officers, employees, agents, successors, attorneys and
assigns.

	9.2	 	Compliance Regarding Hazardous Substances.

The Borrower represents and warrants that the Borrower and its Subsidiaries have complied with all
current and future laws, regulations and ordinances or other requirements of any governmental
authority relating to or imposing liability or standards of conduct concerning protection of health
or the environment or hazardous substances.

	9.3	 	Notices Regarding Hazardous Substances.

Until full repayment of the loans made pursuant to this Agreement, the Borrower will promptly
notify the Bank in writing of any threatened or pending investigation of the Borrower or any of its
Subsidiaries or any of their respective properties or operations by any governmental agency under
any current or future law, regulation or ordinance pertaining to any hazardous substance.

	9.4	 	Site Visits, Observations and Testing.

The Bank and its agents and representatives will have the right at any reasonable time, after
giving reasonable notice to the Borrower, to enter and visit any locations where any Collateral is
located for the purposes of observing the Collateral, taking and removing environmental samples,
and conducting tests. The Borrower shall reimburse the Bank on demand for the costs of any such
environmental investigation and testing. The Bank will make reasonable efforts during any site
visit, observation or testing conducted

-18-

 

pursuant this paragraph to avoid interfering with the Borrower’s use of the Collateral. The Bank
is under no duty to observe the Collateral or to conduct tests, and any such acts by the Bank will
be solely for the purposes of protecting the Bank’s security and preserving the Bank’s rights under
this Agreement. No site visit, observation or testing or any report or findings made as a result
thereof (“Environmental Report”) (i) will result in a waiver of any default of the
Borrower; (ii) impose any liability on the Bank; or (iii) be a representation or warranty of any
kind regarding the Collateral (including its condition or value or compliance with any laws) or the
Environmental Report (including its accuracy or completeness). In the event the Bank has a duty or
obligation under applicable laws, regulations or other requirements to disclose an Environmental
Report to the Borrower or any other party, the Borrower authorizes the Bank to make such a
disclosure. The Bank may also disclose an Environmental Report to any regulatory authority, and to
any other parties as necessary or appropriate in the Bank’s judgment. The Borrower further
understands and agrees that any Environmental Report or other information regarding a site visit,
observation or testing that is disclosed to the Borrower by the Bank or its agents and
representatives is to be evaluated (including any reporting or other disclosure obligations of the
Borrower) by the Borrower without advice or assistance from the Bank.

	9.5	 	Definition of Hazardous Substances.

“Hazardous substances” means any substance, material or waste that is or becomes designated
or regulated as “toxic,” “hazardous,” “pollutant,” or “contaminant” or a similar designation or
regulation under any current or future federal, state or local law (whether under common law,
statute, regulation or otherwise) or judicial or administrative interpretation of such, including
without limitation petroleum or natural gas.

	9.6	 	Continuing Obligation.

The Borrower’s obligations to the Bank under this Article, except the obligation to give notices to
the Bank, shall survive termination of this Agreement and repayment of the Borrower’s obligations
to the Bank under this Agreement.

	10.	 	DEFAULT AND REMEDIES

If any of the following events of default occurs, the Bank may do one or more of the following:
declare the Borrower in default, terminate the Facility No. 1 Commitment and the Facility No. 2
Commitment, stop making any additional credit available to the Borrower, and require the Borrower
to repay its entire debt immediately and without prior notice. If an event that, with notice or
the passage of time, will constitute an event of default has occurred and is continuing, the Bank
has no obligation to make advances or extend additional credit under this Agreement. In addition,
if any event of default occurs, the Bank shall have all rights, powers and remedies available under
any instruments and agreements required by or executed in connection with this Agreement, as well
as all rights and remedies available at law or in equity. If an event of default occurs under the
paragraph entitled “Bankruptcy,” below, with respect to the Borrower or any of its Subsidiaries,
then the entire debt outstanding under this Agreement will automatically be due immediately.

	10.1	 	Failure to Pay.

The Borrower fails to make a payment under this Agreement when due, provided, however, that such
failure shall not constitute an event of default hereunder if no other default or event of default
has occurred and is continuing and such payment is received by the Bank within three (3) days of
the date such payment was due.

-19-

 

	10.2	 	Other Bank Agreements.

Any other default occurs under any other agreement the Borrower or any Obligor or any of the
Borrower’s related entities or affiliates (including CET) has with the Bank or any affiliate of the
Bank.

	10.3	 	Cross-Default.

Any default occurs under any agreement in connection with any credit (the aggregate outstanding
amount of which credit is in excess of $250,000) (i) the Borrower (or any Obligor) or any of the
Borrower’s related entities or affiliates has obtained from anyone else or (ii) that the Borrower
(or any Obligor) or any of the Borrower’s related entities or affiliates has guaranteed, provided,
however, that in the event that such default occurs in connection with payment of sums due under
the distribution agreement relating to the Borrower’s purchase of exclusive rights to distribute
Kristalose® in North America, such default shall not be a cross-default so long as (i) such payment
is being contested in good faith and by appropriate proceedings, for which adequate reserves in
accordance with GAAP have been established on the books of such Borrower and (ii) such refusal to
pay could not reasonably be expected to result in the termination of or the loss of any material
rights under the distribution agreement.

	10.4	 	False Information.

The Borrower or any Obligor has given the Bank materially false or misleading information or
representations.

	10.5	 	Bankruptcy.

The Borrower, any Subsidiary, any Obligor or any general partner of the Borrower or of any Obligor
files a bankruptcy petition, or a bankruptcy petition is filed against any of the foregoing
parties, or the Borrower, any Subsidiary, any Obligor or any general partner of the Borrower or of
any Obligor makes a general assignment for the benefit of creditors.

	10.6	 	Receivers.

A receiver or similar official is appointed for a substantial portion of the Borrower’s or any
Subsidiary’s or Obligor’s business, or the business is terminated, or, if any Subsidiary or Obligor
is anything other than a natural person, such Subsidiary or Obligor is liquidated or dissolved.

	10.7	 	Lien Priority.

The Bank fails to have an enforceable first lien (except for any prior liens to which the Bank has
consented in writing) on or security interest in any property given as security for this Agreement.

	10.8	 	Lawsuits.

Any lawsuit or lawsuits are filed on behalf of one or more trade creditors against the Borrower or
any Subsidiary or Obligor in excess of any insurance coverage.

	10.9	 	Judgments.

Any judgments or arbitration awards are entered against the Borrower, any Subsidiary or any
Obligor, or the Borrower, any Subsidiary or any Obligor enters into any settlement agreements with
respect to any litigation or arbitration, in excess of any insurance coverage.

	10.10	 	Death.

-20-

 

If the Borrower or any Obligor is a natural person, the Borrower or such Obligor dies or becomes
legally incompetent; or if the Borrower or any Obligor is a partnership, any general partner dies
or becomes legally incompetent.

	10.11	 	Material Adverse Change.

A material adverse change occurs, or is reasonably likely to occur, in the Borrower’s, any
Subsidiary’s or any Obligor’s business condition (financial or otherwise), operations, properties
or prospects, or ability to repay the credit; or the Bank determines that it is insecure for any
other reason.

	10.12	 	Government Action.

Any government authority takes action that the Bank believes materially adversely affects the
Borrower’s, any Subsidiary’s or any Obligor’s financial condition or ability to repay.

	10.13	 	Default Under Related Documents.

Any default occurs under any subordination agreement, security agreement, deed of trust, mortgage,
the CET Pledged Note, the CET Security Agreement or any other document required by or delivered in
connection with this Agreement or any such document is no longer in effect.

	10.14	 	Other Breach Under Agreement.

A default occurs under any other term or condition of this Agreement not specifically referred to
in this Article. This includes any failure by the Borrower (or any other party named in the
Covenants section) to comply with any financial covenants set forth in this Agreement, whether such
failure is evidenced by financial statements delivered to the Bank or is otherwise known to the
Borrower or the Bank.

	10.15	 	Change in Control.

If any individual, entity or group (as defined in Section 13(d) of the Securities Exchange Act of
1934) shall obtain ownership or control, in one or a series of transactions, of more than thirty
(30%) of the common stock or thirty (30%) of the voting power of the Borrower entitled to vote in
the election of members of the board of directors of the Borrower.

	11.	 	ENFORCING THIS AGREEMENT; MISCELLANEOUS
	 
	11.1	 	GAAP.

Except as otherwise stated in this Agreement, all financial information provided to the Bank and
all financial covenants will be made under generally accepted accounting principles, consistently
applied.

	11.2	 	Tennessee Law.

This Agreement is governed by Tennessee law.

	11.3	 	Successors and Assigns.

This Agreement is binding on the Borrower’s and the Bank’s successors and assignees. The Borrower
agrees that it may not assign this Agreement without the Bank’s prior consent. The Bank may sell
participations in or assign this loan, and may exchange information about the Borrower (including,
without limitation, any information regarding any hazardous substances) with actual or potential
participants or assignees. If a participation is sold or the loan is assigned, the purchaser will
have the right of set-off against the Borrower.

-21-

 

	11.4	 	Interest and Loan Charges Not to Exceed Maximum Amounts Allowed by Law.

Anything in this Agreement or any of the other Loan Documents to the contrary notwithstanding, in
no event whatsoever, whether by reason of advancement of proceeds of the loans hereunder,
acceleration of the maturity of the unpaid balance of such loans or otherwise, shall the interest
and loan charges agreed to be paid to the Bank for the use of the money advanced or to be advanced
hereunder exceed the maximum amounts collectible under applicable laws in effect from time to time.
It is understood and agreed by the parties that, if for any reason whatsoever the interest or loan
charges paid or contracted to be paid by the Borrower in respect of the loans made hereunder shall
exceed the maximum amounts collectible under applicable laws in effect from time to time, then
ipso facto, the obligation to pay such interest and/or loan charges shall be
reduced to the maximum amounts collectible under applicable laws in effect from time to time, and
any amounts collected by the Bank that exceed such maximum amounts shall be applied to the
reduction of the principal balance of the loans and/or refunded to the Borrower so that at no time
shall the interest or loan charges paid or payable in respect of the loans hereunder exceed the
maximum amounts permitted from time to time by applicable law.

	11.5	 	Arbitration and Waiver of Jury Trial.
	 
	(a)	 	This paragraph concerns the resolution of any controversies or claims between the parties,
whether arising in contract, tort or by statute, including but not limited to controversies or
claims that arise out of or relate to: (i) this agreement (including any renewals, extensions
or modifications); or (ii) any document related to this agreement (collectively a
“Claim”). For the purposes of this arbitration provision only, the term “parties”
shall include any parent corporation, subsidiary or affiliate of the Bank involved in the
servicing, management or administration of any obligation described or evidenced by this
agreement.
	 
	(b)	 	At the request of any party to this agreement, any Claim shall be resolved by binding
arbitration in accordance with the Federal Arbitration Act (Title 9, U.S. Code) (the
“Act”). The Act will apply even though this agreement provides that it is governed by
the law of a specified state. The arbitration will take place on an individual basis without
resort to any form of class action.
	 
	(c)	 	Arbitration proceedings will be determined in accordance with the Act, the then-current rules
and procedures for the arbitration of financial services disputes of the American Arbitration
Association or any successor thereof (“AAA”), and the terms of this paragraph. In the
event of any inconsistency, the terms of this paragraph shall control. If AAA is unwilling or
unable to (i) serve as the provider of arbitration or (ii) enforce any provision of this
arbitration clause, the Bank may designate another arbitration organization with similar
procedures to serve as the provider of arbitration.
	 
	(d)	 	The arbitration shall be administered by AAA and conducted, unless otherwise required by law,
in any U.S. state where real or tangible personal property Collateral for this credit is
located or if there is no such Collateral, in the state specified in the governing law section
of this agreement. All Claims shall be determined by one arbitrator; however, if Claims
exceed Five Million Dollars ($5,000,000), upon the request of any party, the Claims shall be
decided by three arbitrators. All arbitration hearings shall commence within ninety (90) days
of the demand for arbitration and close within ninety (90) days of commencement and the award
of the arbitrator(s) shall be issued within thirty (30) days of the close of the hearing.
However, the arbitrator(s), upon a showing of good cause, may extend the commencement of the
hearing for up to an additional sixty (60) days. The arbitrator(s) shall provide a concise
written statement of reasons for the award. The arbitration award may be submitted to any
court having jurisdiction to be confirmed, judgment entered and enforced.
	 
	(e)	 	The arbitrator(s) will give effect to statutes of limitation in determining any Claim and may
dismiss the arbitration on the basis that the Claim is barred. For purposes of the application
of the statute of limitations, the service on AAA under applicable AAA rules of a notice of
Claim is the

-22-

 

	 	 	equivalent of the filing of a lawsuit. Any dispute concerning this arbitration provision or
whether a Claim is arbitrable shall be determined by the arbitrator(s). The arbitrator(s)
shall have the power to award legal fees pursuant to the terms of this agreement.

	(f)	 	This paragraph does not limit the right of any party to: (i) exercise self-help remedies,
such as but not limited to, setoff; (ii) initiate judicial or non-judicial foreclosure against
any real or personal property Collateral; (iii) exercise any judicial or power of sale rights,
or (iv) act in a court of law to obtain an interim remedy, such as but not limited to,
injunctive relief, writ of possession or appointment of a receiver, or additional or
supplementary remedies.
	 
	(g)	 	The filing of a court action is not intended to constitute a waiver of the right of any
party, including the suing party, thereafter to require submittal of the Claim to arbitration.
	 
	(h)	 	By agreeing to binding arbitration, the parties irrevocably and voluntarily waive any right
they may have to a trial by jury in respect of any Claim. Furthermore, without intending in
any way to limit this agreement to arbitrate, to the extent any Claim is not arbitrated, the
parties irrevocably and voluntarily waive any right they may have to a trial by jury in
respect of such Claim. This provision is a material inducement for the parties entering into
this agreement.

	11.6	 	Severability; Waivers.

If any part of this Agreement is not enforceable, the rest of this Agreement may be enforced. The
Bank retains all rights, even if it makes a loan after default. If the Bank waives a default, it
may enforce a later default. Any consent or waiver under this Agreement must be in writing.

	11.7	 	Costs and Attorneys’ Fees.

The Borrower shall reimburse the Bank for any reasonable costs and attorneys’ fees incurred by the
Bank in connection with the enforcement or preservation of any rights or remedies under this
Agreement and any other documents executed in connection with this Agreement, and in connection
with any amendment, waiver, “workout” or restructuring under this Agreement. In the event of a
lawsuit or arbitration proceeding, the prevailing party is entitled to recover costs and reasonable
attorneys’ fees incurred in connection with the lawsuit or arbitration proceeding, as determined by
the court or arbitrator. In the event that any case is commenced by or against the Borrower under
the Bankruptcy Code (Title 11, United States Code) or any similar or successor statute, the Bank is
entitled to recover costs and reasonable attorneys’ fees incurred by the Bank related to the
preservation, protection, or enforcement of any rights of the Bank in such a case. As used in this
paragraph, “attorneys’ fees” includes the allocated costs of the Bank’s in-house counsel.

	11.8	 	Individual Liability.

If the Borrower is a natural person, the Bank may proceed against the Borrower’s business and
non-business property in enforcing this and other agreements relating to this loan. If the
Borrower is a partnership, the Bank may proceed against the business and non-business property of
each general partner of the Borrower in enforcing this and other agreements relating to this loan.

	11.9	 	One Agreement.

This Agreement, the Loan Documents and any related security or other agreements required by this
Agreement, collectively:

	(a)	 	represent the sum of the understandings and agreements between the Bank and the Borrower
concerning this credit;

-23-

 

	(b)	 	replace any prior oral or written agreements between the Bank and the Borrower concerning
this credit; and
	 
	(c)	 	are intended by the Bank and the Borrower as the final, complete and exclusive statement of
the terms agreed to by them.

In the event of any conflict between this Agreement and any other agreements required by this
Agreement, this Agreement will prevail. Any reference in any related document to a “promissory
note” or a “note” executed by the Borrower and dated as of the date of this Agreement shall be
deemed to refer to this Agreement and any promissory note(s) that may be executed as additional
evidence of the debt hereunder, all as now in effect or as hereafter amended, modified, extended,
renewed or restated.

	11.10	 	Indemnification.

The Borrower will indemnify and hold the Bank harmless from any loss, liability, damages,
judgments, and costs of any kind relating to or arising directly or indirectly out of (a) this
Agreement or any document required hereunder, (b) any credit extended or committed by the Bank to
the Borrower hereunder, and (c) any litigation or proceeding related to or arising out of this
Agreement, any such document, or any such credit. This indemnity includes but is not limited to
attorneys’ fees (including the allocated cost of in-house counsel). This indemnity extends to the
Bank, its parent, subsidiaries and all of their directors, officers, employees, agents, successors,
attorneys, and assigns. This indemnity will survive repayment of the Borrower’s obligations to the
Bank. All sums due to the Bank hereunder shall be obligations of the Borrower, due and payable
immediately without demand.

	11.11	 	Notices.

Unless otherwise provided in this Agreement or in another agreement between the Bank and the
Borrower, all notices required under this Agreement shall be personally delivered or sent by first
class mail, postage prepaid, or by overnight courier, to the addresses on the signature page of
this Agreement, or sent by facsimile to the fax numbers listed on the signature page, or to such
other addresses as the Bank and the Borrower may specify from time to time in writing. Notices and
other communications shall be effective (i) if mailed, upon the earlier of receipt or five (5) days
after deposit in the U.S. mail, first class, postage prepaid, (ii) if telecopied, when transmitted,
or (iii) if hand-delivered, by courier or otherwise (including telegram, lettergram or mailgram),
when delivered.

	11.12	 	Headings.

Article and paragraph headings are for reference only and shall not affect the interpretation or
meaning of any provisions of this Agreement.

	11.13	 	Counterparts.

This Agreement may be executed in as many counterparts as necessary or convenient, and by the
different parties on separate counterparts each of which, when so executed, shall be deemed an
original but all such counterparts shall constitute but one and the same agreement.

	11.14	 	Existing Loan Agreement and Existing Loan Documents.

This Agreement amends, restates, supersedes and replaces the Existing Loan Agreement, and upon the
effectiveness hereof any credit outstanding thereunder shall be deemed to be outstanding under this
Agreement. Except as amended and/or amended and restated pursuant to this Agreement, the Existing
Loan Documents shall continue in full force and effect in all respects. References in any of the
Existing Loan Documents to the Existing Loan Agreement, by whatever terminology used, hereafter
shall be

-24-

 

deemed to be references to this Agreement as the same may be supplemented, amended, restated,
extended, renewed, replaced or otherwise modified from time to time.

[This space left blank intentionally; signature page follows]

-25-

 

This Agreement is executed as of the date stated at the top of the first page.

	 	 	 	 	 	 	 	 	 	 	 
	BANK OF AMERICA, N.A.	 	 	 	CUMBERLAND PHARMACEUTICALS, INC.	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By

	/s/ H. Hope Walker	 	 	 	By	 	 	 
	 

	 
	 	 	 	 	 	 	 
	Typed Name

	H. Hope Walker	 	 	 	Typed Name	 	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	Title 

	Vice President	 	 	 	Title 	 	 
	 

	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Address where notices to the Bank are to be sent:

Bank of America, N.A.	 	 Address where notices to the Borrower are to be sent:	 	 
	Bank of America Plaza	 	Cumberland Pharmaceuticals, Inc.	 	 
	414 Union Street	 	2525 West End Avenue, Suite 950	 	 
	Nashville, TN 37219-1697	 	Nashville, Tennessee 37203	 	 
	Attn: Healthcare Banking Group (TN1-100-04-17)	 	 Attn: A.J. Kazimi, Chief Executive Officer	 	 
	Facsimile No. (615) 749-4951	 	Facsimile No. (615) 255-0094	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	ACKNOWLEDGED:	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	CUMBERLAND EMERGING TECHNOLOGIES, INC.	 	 	 	 	 	 

	 	 	 	 	 
	By

	 	 	 
	 

	 	 	 
	Typed Name
		 	 
	 

	 	 	 	 
	Title 
	 	 	 
	 

	 	 	 

-26-

 

This Agreement is executed as of the date stated at the top of the first page.

	 	 	 	 	 	 	 	 	 	 	 
	BANK OF AMERICA, N.A.	 	 	 	CUMBERLAND PHARMACEUTICALS, INC.	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By

	 	 	 	 	By	/s/ David L. Lowrance	 	 
	 

	 
	 	 	 	 	 	 	 
	Typed Name

	 	 	 	 	Typed Name	David L. Lowrance	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	Title 

	 	 	 	 	Title 	Vice President & CFO	 	 
	 

	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Address where notices to the Bank are to be sent:

Bank of America, N.A.	 	 Address where notices to the Borrower are to be sent:	 	 
	Bank of America Plaza	 	Cumberland Pharmaceuticals, Inc.	 	 
	414 Union Street	 	2525 West End Avenue, Suite 950	 	 
	Nashville, TN 37219-1697	 	Nashville, Tennessee 37203	 	 
	Attn: Healthcare Banking Group (TN1-100-04-17)	 	 Attn: A.J. Kazimi, Chief Executive Officer	 	 
	Facsimile No. (615) 749-4951	 	Facsimile No. (615) 255-0094	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	ACKNOWLEDGED:	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	CUMBERLAND EMERGING TECHNOLOGIES, INC.	 	 	 	 	 	 

	 	 	 	 	 
	By

	/s/ David L. Lowrance	 	 
	 

	 	 	 
	Typed Name
	David L. Lowrance	 	 
	 

	 	 	 	 
	Title 
	Vice President & CFO	 	 
	 

	 	 	 

-27-

 

Schedule 1

Existing Loan Documents

	1.	 	Fifth Amended and Restated Promissory Note dated April 6, 2008, in the principal amount not
exceeding $4,000,000, made and executed by the Borrower and payable to the order of the Bank.
	 
	2.	 	Term Promissory Note dated April 6, 2006, in the original principal amount of $5,500,000,
made and executed by the Borrower and payable to the order of the Bank.
	 
	3.	 	Trademark and Patent Security Agreement dated April 19, 2002, between the Borrower and the
Bank, as amended by that certain First Amendment to Trademark and Patent Security Agreement
dated August 1, 2002, as further amended by that certain Second Amendment to Trademark and
Patent Security Agreement dated April 6, 2006.
	 
	4.	 	Amended and Restated Security Agreement dated April 6, 2006, between the Borrower and the
Bank.

 

 

Schedule 7.7

Litigation

None.

 

 

Schedule 8.10

Liabilities

None.

 

 

Schedule 8.11

Liens

None.

 

 

Schedule 8.14

Loans/Extensions of Credit

None.

 

 

EXHIBIT A

COMPLIANCE CERTIFICATE

     This Compliance Certificate is delivered pursuant to Section 8.2 of that certain Third
Amended and Restated Loan Agreement dated as of December 30, 2008 (together with all amendments and
modifications, if any, from time to time made thereto, the “Loan Agreement”), between
Cumberland Pharmaceuticals, Inc., a Tennessee corporation (the “Borrower”) and Bank of
America, N.A (the “Bank”). Unless otherwise defined, terms used herein (including the
attachments hereto) have the meanings provided in the Loan Agreement.

     The undersigned, being the duly elected, qualified and acting                      of the Borrower,
on behalf of the Borrower and solely in his or her capacity as an officer of the Borrower, hereby
certifies and warrants that:

     1. He or she is the                      of the Borrower and that, as such, he or she is
authorized to execute this certificate on behalf of the Borrower.

     2. The financial statements being submitted to the Bank by the Borrower with this
Certificate are true and correct as of the date hereof.

     3. The Borrower’s Leverage Ratio as of the end of the most recent fiscal quarter
covered by such financial statements is                      to 1.00, calculated as follows:

[SHOW COMPLIANCE CALCULATION]

     4. The Borrower’s Fixed Charge Coverage Ratio as of the end of the most recent fiscal
quarter covered by such financial statements is                      to 1.00, calculated as follows:

[SHOW COMPLIANCE CALCULATION]

     5. The Borrower’s Liquidity as of the end of the most recent [fiscal quarter] [month]
covered by such financial statements is $                    .

     6. The Borrower’s capital expenditures from the beginning of the current fiscal year
through the end of the most recent [fiscal quarter] [month] covered by such financial
statements total $                    .

     7. The Borrower’s operating lease expenditures from the beginning of the current fiscal
year through the end of the most recent [fiscal quarter] [month] covered by the foregoing
financial statements total $                    .

     8. As of the date of such financial statements and for the period(s) covered thereby,
and as of the date of this certificate, no default was or is in existence under this
Agreement[.] [except as described below. The actions the Borrower is taking and/or proposes
to take with respect to such default(s) are set forth below.]

 

 

          IN WITNESS WHEREOF, the undersigned has executed and delivered this certificate, this                     
day of                                         , 20                    .

	 	 	 	 	 	 	 
	 	 	CUMBERLAND PHARMACEUTICALS, INC.

	 	 
	 

	 	By
	 	 	 	 
	 

	 	 	 	 	 
	 

	 	Typed Name	 	 	 
	 

	 	 	 	 	 	 
	 

	 	TitleEX-10.1

FIRST AMENDMENT AND CONSENT

     THIS AMENDMENT AND CONSENT, dated as of February 11, 2009 (this “Amendment”), to the
Amended and Restated Credit Agreement, dated as of July 20, 2006, (the “Credit Agreement”),
among General Motors Corporation (“GM”), General Motors of Canada Limited (“GM
Canada”), Saturn Corporation, Citicorp USA, Inc., as administrative agent for the Lenders
thereunder (in such capacity, the “Agent”), JPMorgan Chase Bank, N.A., as syndication agent
and the several banks and other financial institutions from time to time parties thereto as lenders
(the “Lenders”).

SECTION 1. DEFINITIONS

     1.1 Defined Terms. Unless otherwise defined herein, capitalized terms which are
defined in the Credit Agreement (as amended hereby) are used herein as therein defined.

SECTION 2. AMENDMENTS TO THE CREDIT AGREEMENT

     2.1 Amendment to Section 1.1 (Defined Terms). Subsection 1.1 of the Credit Agreement
is hereby amended by:

     (a) adding the following new definitions in the appropriate alphabetical order:

“‘Additional Canadian Obligations’: Indebtedness (other than
Indebtedness under any of the Loan Documents) that is secured by
property of GM Canada that constitutes Canadian Collateral;
provided that if such Indebtedness is owed to any Person(s)
which are not Canadian Governmental Authorities or US Governmental
Authorities, such Indebtedness does not have any scheduled payments
of principal prior to the Extended Termination Date.”;

“‘Additional Collateral’: property that becomes subject to a
Lien in favor of the Agent for the benefit of the Secured Lenders
pursuant to subsection 5.5(d) and/or 5.5(e).”;

“‘Additional US Government Creditor’: the holder of any
Additional US Government Debt.”;

“‘Additional US Government Debt’: Indebtedness under any
credit facility (other than the UST Loan Agreement and any Permitted
Refinancing Document) provided to GM or any of its Subsidiaries by
any US Governmental Authority to the extent such credit facility is
secured by any assets securing any obligations under the UST Loan
Documents; provided an agent or trustee for the holders of
such Indebtedness have agreed to be bound by the terms of the
Intercreditor Agreement with respect to such Indebtedness; and
provided further that Additional US Government Debt
shall not include any DIP Financing.”;

“‘Additional US Government Debt Documents’: the agreements,
instruments and other documents executed in connection with the
incurrence of any Additional US Government Debt, including, without

 

 

limitation, any agreements or documents relating to Liens securing
such Additional US Government Debt.”;

“‘Canadian Creditor’: the holder of any Additional Canadian
Obligations.”;

“‘Canadian Creditor Document’: the agreements, instruments
and other documents executed in connection with the incurrence of any
Additional Canadian Obligations, including, without limitation, any
agreements or documents relating to the Liens securing such
Additional Canadian Obligations.”;

“‘Canadian Governmental Authority’: any Governmental
Authority located in Canada and the Export Development Corporation
(Canada).”;

“‘DIP Financing’: as defined in the Intercreditor
Agreement.”;

“‘Early Maturity Date’: a final maturity date on or prior to
the Extended Termination Date with respect to any Subject Debt
Tranche.”;

“‘First Amendment’: the first amendment to this Agreement,
dated as of February 11, 2009.”;

“‘First Amendment Effective Date’: February 11, 2009.”;

“‘Going Concern Provision’: the provision of the PP&E Term
Loan Agreement that requires the delivery of financial statements
without a going concern qualification.”;

“‘Guaranty Document’: as defined in subsection 5.5(e).”;

“‘Individual Property’: as defined in the UST Loan Agreement
but excluding the real properties listed on Schedule 1 hereto.”;

“‘Initial Grace Period’: as defined in Section 7(j).”;

“‘Intellectual Property’: as defined in the UST Loan
Agreement.”;

“‘Intercreditor Agreement’: the intercreditor agreement,
dated as of February 11, 2009, among Citicorp USA, Inc., as agent for
the Bank Priority Secured Parties (as defined therein), Citicorp USA,
Inc., as agent for the Hedge Priority Secured Parties (as defined
therein), the UST Representative (as defined therein) and the
Grantors (as defined therein).”;

“‘Mandatory Prepayment Date’: as defined in subsection
2.8(f).”;

“‘Non-Canadian
Governmental Authority’: any Person who is
not directly or indirectly owned or controlled by one or more
Canadian Governmental Authorities. For the purposes of this
definition, “control” means the possession of the power to direct or
cause the direction of the
management and policies of such Person, whether through the ownership
of voting securities, by contract or otherwise.”;

2

 

“‘Non-US
Governmental Authority’: any Person who is not
directly or indirectly owned or controlled by one or more US
Governmental Authorities. For the purposes of this definition,
“control” means the possession of the power to direct or cause the
direction of the management and policies of such Person, whether
through the ownership of voting securities, by contract or
otherwise.”;

“‘Permitted Refinancing Creditor’: the holder of any
Permitted Refinancing Debt.”;

“‘Permitted Refinancing Debt’: any Indebtedness issued in
exchange for, or the net proceeds of which are used to extend,
refinance, renew, replace, defease, discharge or refund the UST Loans
(a “refinancing”); provided that such Indebtedness
may be in a principal amount greater than the principal amount of the
UST Loans; provided further that (a) the terms of
such Indebtedness are at least as favorable to GM as it would obtain
in a comparable arm’s-length transaction on market terms (as
determined in good faith by GM) and (b) an agent or trustee for the
holders of such Indebtedness have agreed to be bound by the terms of
the Intercreditor Agreement with respect such Indebtedness; and
provided further that Permitted Refinancing Debt
shall not include any DIP Financing.”;

“‘Permitted Refinancing Documents’: the agreements,
instruments and other documents executed in connection with the
incurrence of any Permitted Refinancing Debt, including, without
limitation, any agreements or documents relating to the Liens
securing such Permitted Refinancing Debt.”;

“‘PP&E Term Loan Agreement’: the Term Loan Agreement, dated
as of November 29, 2006, among GM, Saturn, the lenders party thereto,
JPMorgan Chase Bank, N.A., as administrative agent, and the other
agents party thereto, as the same may be amended, supplemented, or
otherwise modified from time to time.”;

“‘Prepayment’: as defined in subsection 6.10.”;

“‘Prepayment Amount’: as defined in the definition of
“Prepayment Percentage.”;

“‘Prepayment Percentage’: with respect to a required
prepayment of Extended Secured Loans pursuant to subsection 6.10, the
product of (i) the amount of the applicable Subject Debt Tranche
proposed to be voluntarily prepaid (the “Prepayment Amount”)
divided by the principal amount outstanding of such Subject Debt
Tranche (prior to giving effect to such prepayment), multiplied by
(ii) 100.

“‘Priming Facility’: as defined in subsection 5.5(d).”;

“‘Restricted Payments’: with respect to any Person,
collectively, all direct or indirect cash dividends or other cash
distributions on, and all cash payments for, the purchase,
redemption, defeasance or retirement or

3

 

other acquisition for value
of, any class of Capital Stock issued by such Person, whether such
securities are now or may hereafter be authorized or outstanding, and
any distribution in respect of any of the foregoing, whether directly
or indirectly.”;

“‘Second Priority Mexican Stock Pledge Agreement’: the pledge
agreement to be executed and delivered by GM in favor of the Agent
for the benefit of the Hedging Secured Parties, with respect to the
pledge by GM of 65% of the Capital Stock of CGM, in substantially the
same form as the Mexican Stock Pledge Agreement, as such agreement
may be amended, restated, supplemented or otherwise modified from
time to time.”;

“‘Second Priority Security Documents’: the collective
reference to the Second Priority Security Agreements and the Second
Priority Mexican Stock Pledge Agreement.”;

“‘Subject Debt Documents’: the UST Loan Documents, Permitted
Refinancing Documents, Additional US Government Debt Documents and
Canadian Creditor Documents.”;

“‘Subject Debt Tranche’: the commitments and provisions
related to extensions of credit made under any Subject Debt Documents
(including any revolving credit facility (whether or not funded)), in
each case that are designated and constitute a separate class of
commitments and/or extensions of credit (including, without
limitation, with respect to voting rights) under such Subject Debt
Documents, as applicable, and, if no such designation is made
thereunder, the commitments and provisions related to all extensions
of credit made under such Subject Debt Documents, as applicable.”;

“‘US Governmental Authority’: any Governmental Authority
located in the United States of America.”;

“‘UST Agent’: the United States Department of the Treasury,
as the initial UST Secured Party, and any successor representative
appointed for the UST Secured Parties.”;

“‘UST Loan Agreement’: the Loan and Security Agreement, dated
as of December 31, 2008, between GM, as borrower, the guarantors
party thereto and the United States Department of the Treasury, as
lender, as the same may from time to time be amended (including,
without limitation, to increase the principal amount thereunder),
modified, supplemented or otherwise refinanced or replaced with
Permitted Refinancing Debt.”;

“‘UST Loan Documents’: collectively, (a) the UST Loan
Agreement and (b) the other agreements, instruments and other
documents executed in connection with the UST Loan Agreement.”;

“‘UST Loans’: the loans made pursuant to the UST Loan
Agreement.”;

4

 

“‘UST-Related IP Filings’: each of the short-form
intellectual property security agreements made by GM or any of its
Subsidiaries in favor of, or for the benefit of, the Agent, for the
benefit of the Lenders and the Hedging Secured Parties, in
substantially the same forms as accepted by the UST Agent for the
first priority liens on the Intellectual Property.”;

“‘UST-Related Mortgage’: each of the mortgages and deeds of
trust made by GM or any of its Subsidiaries in favor of, or for the
benefit of, the Agent, for the benefit of the Lenders and the Hedging
Secured Parties, in substantially the same forms as accepted by the
UST Agent for the first priority mortgages in its favor and subject
to all Permitted Encumbrances (as such term is defined in such
forms).”;

“‘UST-Related Security Agreement’: the guarantee and security
agreement made by GM and certain of its Subsidiaries in favor of the
Agent, for the benefit of the Lenders and the Hedging Secured
Parties, having substantially the same terms as agreed to by the UST
Agent in connection with the guarantee by such Subsidiaries of the
obligations arising under the UST Loan Agreement and the granting by
GM and such Subsidiaries of Liens on the “Facility Collateral” (as
such term is defined in the UST Loan Agreement).”;

“‘UST-Related Security Documents’: the UST-Related Mortgages,
UST-Related IP Filings, the UST-Related Security Agreement and all
other instruments, documents and agreements purporting to grant a
lien on, or security interest in, the Additional Collateral.”;

“‘UST Secured Obligations’: has the meaning assigned to such
term in the Intercreditor Agreement.”; and

“‘UST Secured Parties’: has the meaning assigned to such term
in the Intercreditor Agreement.”;

     (b) deleting the second sentence in the definition of “Canadian Collateral Value” in
its entirety and inserting in lieu thereof the following:

“For purposes of determining the Canadian Collateral Value, Canadian
Collateral shall be deemed to exclude any Canadian Collateral subject
to third-party liens or statutory deemed trusts securing
Indebtedness, or securing other monetary obligations, if all such
third-party liens or statutory deemed trusts securing other monetary
obligations, in the aggregate, would materially reduce the value of
the Canadian Collateral taken as a whole; provided that
Canadian Collateral shall not be excluded (and the Canadian
Collateral Value shall not be affected) as a consequence of any Liens
permitted by subsection 6.2(b)(xvii).”;

     (c) deleting the period at the end of the definition of “Collateral” and inserting in
lieu thereof the following:

5

 

”; provided that for all purposes hereunder (other than
subsections 10.13 and 10.14), including, without limitation, for the
purposes of subsection 10.1A, “Collateral” shall exclude any
Additional Collateral.”;

     (d) inserting as a new sentence at the end of the definition of “Eurodollar Rate” the
following:

“Notwithstanding the foregoing, at no time shall the “Eurodollar
Rate” be a rate that is less than 2.00% per annum.”;

     (e) deleting the definition of “Loan Documents” in its entirety and inserting in lieu
thereof the following:

“this Agreement, the First Amendment, the Security Documents, the
Intercreditor Agreement, any intercreditor agreement entered into by
the Agent, any Canadian Creditor or any agent for any Canadian
Creditors, any intercreditor agreement entered into in connection
with the incurrence of any Permitted Refinancing Debt, any
intercreditor agreement entered into pursuant to subsection 5.5(d),
the Notes and any amendment, waiver, supplement or other modification
to any of the foregoing.”;

     (f) deleting the definition of “Loan Parties” in its entirety and inserting in lieu
thereof the following:

“each of GM, GM Canada and their respective Subsidiaries that are
party to a Loan Document.”;

     (g) deleting the definition of “Security Documents” in its entirety and inserting in
lieu thereof the following:

“the collective reference to the Canadian Security Documents, the US
Security Documents, the Mexican Stock Pledge Agreement, the Second
Priority Mexican Stock Pledge Agreement and the UST-Related Security
Documents.”;

     (h) deleting the second sentence in the definition of “US Collateral Value” in its
entirety and inserting in lieu thereof the following:

“For purposes of determining the US Collateral Value, US Collateral
shall be deemed to exclude any US Collateral subject to third-party
liens securing Indebtedness, or securing other monetary obligations,
if all such third-party liens securing other monetary obligations, in
the aggregate, would materially reduce the value of the US Collateral
taken as a whole; provided that US Collateral shall not be
excluded (and the US Collateral Value shall not be affected) as a
consequence of any Liens permitted by subsection 6.2(b)(xvi).”; and

     (i) deleting the period at the end of the definition of “US Security Documents” and
inserting in lieu thereof of the following:

6

 

”; provided that for all purposes hereunder, “US Security
Documents” shall not include any UST-Related Security Documents.”.

     2.2 Amendment to Subsection 2.8 (Prepayments). Subsection 2.8 is hereby amended by
inserting at the end thereof new subsection 2.8(f) as follows:

“(f) If (i) (x) the UST Loan Documents are amended to shorten the
final maturity date of any Subject Debt Tranche under the UST Loan
Documents to a date which is an Early Maturity Date or (y) any
Subject Debt Tranche under any Additional US Government Debt
Documents or under any Permitted Refinancing Documents shall have a
final maturity date which is an Early Maturity Date, and (ii) in the
case of each of sub-clauses (x) and (y) in clause (i) above, on a
date which is 30 days prior to any such Early Maturity Date with
respect to such Subject Debt Tranche (each a “Mandatory
Prepayment Date”), more than 50% of such Subject Debt Tranche is
held by Person(s) which are in each case, both a Non-US Governmental
Authority and a Non-Canadian Governmental Authority then, on any such Mandatory
Prepayment Date, GM shall, or shall cause GM Canada to, promptly, and
in any event no later than such Early Maturity Date, (x) ratably
prepay the US Secured Loans and/or Canadian/US Secured Loans made to
GM or GM Canada, as applicable, in an aggregate amount equal to the
principal amount of such Subject Debt Tranche due on such Early
Maturity Date (or, to the extent required by Section 2.8(e), cash
collateralize the L/C Obligations issued on behalf of GM or GM
Canada, as applicable, on such Mandatory Prepayment Date), and (y)
permanently reduce the Commitments under the applicable Tranche by
the amount of such prepayment or cash collateralization.”

     2.3 Amendment to Subsection 2.12A (Interest Rates and Payment Dates for Extended Secured
Loans). Subsection 2.12A is hereby amended by:

     (a) deleting clause (e) thereof in its entirety and inserting in lieu thereof the following:

“(e) The “Applicable Margin” with respect to Extended
Secured Loans at any date, subject to the provisions of subsection
2.25, shall be (i) in the case of Eurodollar Loans, 2.500%, and (ii)
in the case of ABR Loans and Canadian Base Rate Loans, 1.500%.”;

     (b) deleting the reference in clause (f)(x) thereof to “2%” and inserting in lieu thereof
“5%”; and

     (c) deleting clause (f)(y) thereof in its entirety and inserting in lieu thereof the
following:

“(y) in the case of overdue interest, facility fee or other amount, a
rate equal to the ABR plus 6.500%.”.

     2.4 Addition of New Subsection 2.25 (Increased Interest Rate). Section 2 of the
Credit Agreement is hereby amended by adding at the end thereof the following new subsection 2.25
as follows:

7

 

“2.25 Increased Interest Rates. If (a)(x) the interest rate
applicable to any Subject Debt Tranche under any Permitted
Refinancing Documents or Additional US Government Debt Documents, at
a time when more than 50% of such Subject Debt Tranche is held by
Person(s) which are, in each case, both a Non-US Governmental
Authority and a Non-Canadian Governmental Authority, is greater than the highest rate
applicable to any Subject Debt Tranche under the UST Loan Documents
immediately prior to the incurrence of such Subject Debt Tranche
under any Permitted Refinancing Documents or Additional US Government
Debt Documents, or (y) the UST Loan Agreement is amended,
supplemented or otherwise modified to increase (or effectively
increase) the interest rate applicable to any Subject Debt Tranche
under the UST Loan Documents at a time when more than 50% of such
Subject Debt Tranche is held by Person(s) which are in each case,
both a Non-US
Governmental Authority and a Non-Canadian Governmental Authority, and
(b) the aggregate principal amount of all Subject Debt Tranches
satisfying sub-clause (x) or (y) in clause (a) above is equal to or
greater than $1,000,000,000, then the interest rates on the Extended
Secured Loans shall be automatically increased so that the Extended
Secured Loans bear interest at a rate equal to the weighted average
interest rate applicable to all Subject Debt Tranches having interest
rates greater than that in effect under the UST Loan Agreement on the
First Amendment Effective Date (calculated assuming that any
revolving credit facility is fully drawn), as determined in good
faith by the Agent in consultation with GM. Upon the effectiveness
of any such increase in the interest rate, the definitions of
“Applicable Margin” shall be deemed to be amended to reflect such
increase.”

     2.5 Amendment to Section 3 (Representations and Warranties). The introductory
paragraph of Section 3 is hereby amended by deleting it in its entirety and inserting in lieu
thereof the following:

“To induce the Agent and the Lenders to enter into this Agreement, to
make Loans and other extensions of credit hereunder, each Loan Party
(other than GM Canada with respect to subsections 3.1 and 3.8 (it
being understood that with respect to all other subsections in this
Section 3, GM Canada is making such representations and warranties
only as to itself and, if applicable, its Subsidiaries)) as to
itself, and GM as to itself and each other Loan Party (other than GM
Canada), hereby represents and warrants to the Agent and each Lender
that:”.

     2.6 Amendment to Subsection 3.12 (Security Documents). Subsection 3.12 is hereby
amended by:

     (a) deleting clause (a) thereof in its entirety and inserting in lieu thereof the following:

“(a) (i) Each of the US Security Agreement and the Mexican Stock
Pledge Agreement is effective to create in favor of the Agent, for
the benefit of the Secured Parties a legal, valid and enforceable
security
interest in the Collateral described therein and proceeds thereof,
(ii) the Canadian Security Agreements are effective to create in
favor of the Agent, for the benefit of the Canadian Secured Parties a
legal, valid and enforceable security interest in the Collateral
described therein and proceeds thereof,

8

 

(iii) the Second Priority
Security Documents are effective to create in favor of the Agent, for
the benefit of the Hedging Secured Parties, a legal, valid and
enforceable security interest in the Collateral described therein and
proceeds thereof and (iv) each of the UST-Related Security Documents
is effective to create in favor of the Agent, for the benefit of each
of the Secured Parties and the Hedging Secured Parties, a legal,
valid and enforceable security interest in the Additional Collateral
described therein and proceeds thereof.”; and

     (b) designating the existing clause (c) thereof as clause (d) and inserting prior thereto the
following new clause (c):

“(c) In the case of Additional Collateral described in the
UST-Related Security Agreement, when financing statements and the
UST-Related IP Filings, in appropriate form, are filed in the
applicable offices of the Secretaries of State of the jurisdictions
of organization of the applicable Loan Parties, the United States
Patent and Trademark Office or the United States Copyright Office, as
applicable, the UST-Related Security Agreement shall constitute a
fully perfected Lien on, and security interest in, all right, title
and interest of the Loan Parties in such Additional Collateral and
the proceeds thereof which can be perfected by the filing of
financing statements, as security for the Total Secured Exposure and
the Hedging Obligations, in each case with the priority specified in
the UST-Related Security Agreement.”.

     2.7 Amendment to Subsection 5.1 (Financial Statements). Subsection 5.1 is hereby
amended by inserting at the end of the parenthetical in clause (a)(i) thereof the phrase “;
provided that the requirement that such reports not include a “going concern” or like
qualification or exception shall not be applicable to such reports provided for the fiscal year
ended December 31, 2008”.

     2.8 Amendment to Subsection 5.5 (Additional Collateral, etc.). Subsection 5.5 of the
Credit Agreement is hereby amended by inserting at the end thereof new clauses (d), (e) and (f) as
follows:

“(d) With respect to any property of GM or any other Loan Party of a
type not constituting Collateral immediately prior to the First
Amendment Effective Date or that becomes Collateral pursuant to
subsection 5.5(a) or (b) hereof but at such time constituting
“Facility Collateral” under the UST Loan Agreement, GM shall, and
shall cause such other Loan Parties to:

(i) on the First Amendment Effective Date, (x) execute and
deliver to the Agent the UST-Related Security Agreement,
granting to the Agent, for the benefit of the Secured Lenders
and the Hedging Secured Parties, a security interest in the
personal property, Intellectual Property and equity interests
described therein and in which GM and/or such Loan Party
purports to
grant to the UST Agent a first priority security interest,
(y) deliver to the Agent financing statements covering such
personal property, Intellectual Property and equity interests
in appropriate form for filing under the Uniform Commercial
Code to perfect

9

 

the security interests created thereby and
(z) deliver to the Agent a certificate of GM, Saturn and each
other Loan Party signing the UST-Related Security Agreement,
in form and substance consistent with the requirements of
subsection 4.1(d);

(ii) not later than 90 days after the First Amendment
Effective Date (or such later date as the Agent shall agree
in its sole discretion), (x) execute and deliver to the
Agent, and cause to be recorded, each of the UST-Related
Mortgages covering each owned Individual Property in each of
the relevant jurisdictions necessary to perfect the Lien of
such UST-Related Mortgage (but only to the extent the first
priority mortgage on such Individual Property was recorded by
the UST Agent (other than in the States of New York and
Florida)), (y) with respect to each Individual Property that
constitutes a leasehold interest for which Individual
Property the UST Agent requires a mortgage to be delivered to
the UST Agent, (A) use commercially reasonable efforts to
obtain all consents required to encumber such Individual
Property that is subject to a mortgage for the benefit of the
UST Secured Parties, including requesting consent for both
Liens simultaneously and sending consent requests to
landlords whose consent has already been sought with respect
to such mortgages benefiting the UST Secured Parties, and (B)
upon obtaining the necessary consents, execute and deliver to
the Agent, and cause to be recorded, each of the UST-Related
Mortgages covering each such Individual Property that
constitutes a leasehold interest in each of the relevant
jurisdictions necessary to perfect the Lien of such
UST-Related Mortgage (but only to the extent the first
priority mortgage on such Individual Property was recorded by
the UST Agent (other than in the States of New York and
Florida)) and (z) pay all recording fees and all stamp taxes,
documentary taxes, intangible taxes and any other recording
taxes payable in connection with the recording of such
UST-Related Mortgages;

(iii) not later than 90 days after the First Amendment
Effective Date (or such later date as the Agent shall agree
in its sole discretion), execute and deliver to the Agent the
UST-Related IP Filings and file such UST-Related IP Filings
with the United States Patent and Trademark Office and/or the
United States Copyright Office, as applicable (to the extent
first priority liens on the Intellectual Property were so
filed by the UST Agent);

(iv) not later than 90 days after the First Amendment
Effective Date (or such later date as the Agent shall agree
in its sole discretion), to the extent that the UST Agent has
perfected its first priority lien on the equity interests of
Foreign Subsidiaries
(as defined in the UST Loan Agreement) of GM or any other
Loan Party in foreign jurisdictions, take actions necessary
to perfect the Lien on such equity interests made in favor
the Agent; and

10

 

(v) not later than 90 days after the First Amendment
Effective Date (or such later date as the Agent shall agree
in its sole discretion), deliver to the Agent a certificate
of each Loan Party executing any UST-Related Security
Document that has not previously delivered a certificate
pursuant to subsection 5.5(d)(i) above, in form and substance
consistent with the requirements of subsection 4.1(d).

Notwithstanding the foregoing but subject to subsection
6.2(a), if applicable, in the event GM or any of its
Subsidiaries incurs Indebtedness, other than the UST Secured
Obligations and any senior secured Indebtedness outstanding
on the First Amendment Effective Date, but including, without
limitation, Indebtedness incurred in connection with a
refinancing or replacement of Indebtedness of GM or such
Subsidiaries outstanding on the First Amendment Effective
Date (other than the UST Secured Obligations or such other
senior secured Indebtedness of GM or any of its
Subsidiaries), which is secured by any Additional Collateral
(a “Priming Facility”), the Agent’s, the other
Secured Parties’ and the Hedging Secured Parties’ Liens on
such Additional Collateral, shall, at GM’s option, be
subordinated to the Liens securing such Priming Facility, so
long as at the time such security interest is granted (x) no
Default has occurred and is continuing, (y) the Agent has
received an intercreditor agreement with the appropriate
parties to the Priming Facility in form and substance
reasonably acceptable to the Agent (it being agreed that an
intercreditor agreement in substantially the same form and
substance as the Intercreditor Agreement shall be acceptable
to the Agent) and (z) if the creditors with respect to such
Priming Facility shall take additional steps to perfect or
protect their respective security interests in the Additional
Collateral beyond what is required by the foregoing
provisions of this subsection 5.5(d), including, without
limitation, entering into additional mortgages, making
additional mortgage recordings, providing title insurance,
surveys, appraisals, consents or estoppels with respect to
real property collateral, taking additional actions to
perfect in foreign jurisdictions or making additional filings
with respect to Intellectual Property, such actions shall
also be taken for the benefit of the Agent and Secured
Lenders hereunder.

(e) To the extent that GM or any of its Subsidiaries executes or
delivers any documents, makes any filing or recording or takes any
other action which purports to grant or perfect a first priority Lien
on additional property in favor of (x) any UST Secured Party to
secure its obligations under the UST Loan Documents, (y) any
Permitted Refinancing Creditor
to secure its obligations under the applicable Permitted Refinancing
Documents or (z) any Additional US Government Creditor to secure its
obligations under the applicable Additional US Government Debt
Documents (including the granting of a guarantee by any Subsidiary
not then a Loan Party in connection with any of the foregoing), such
Person

11

 

shall substantially concurrently therewith take any action
necessary to (A) to the extent not previously granted, grant a
guarantee in favor of the Agent for the benefit of the Secured
Lenders and the Hedging Secured Parties (any agreement evidencing
such a guarantee, a “Guaranty Document”) and (B) grant or
perfect a junior Lien on such property in favor of the Agent for the
benefit of the Secured Lenders and the Hedging Secured Parties.

(f) Notwithstanding anything to the contrary, the actions
contemplated by subsection 5.5(d) and subsection (e) hereof shall not
be required to be taken to the extent that the Agent and GM mutually
agree that the cost of taking such action to obtain perfection in any
jurisdiction is outweighed by the benefit to the Secured Lenders and
the Hedging Secured Parties provided thereby. GM shall reimburse the
Agent for all of its reasonable out-of-pocket costs and expenses
incurred in connection with perfecting its Liens on the Additional
Collateral and any other property referred to in clauses (i), (iii),
(iv) and (v) of subsection 5.5(d) and in subsection 5.5(e) above.”.

     2.9 Other Amendments to Section 5 (Affirmative Covenants). Section 5 of the Credit
Agreement is hereby amended by inserting at the end thereof new subsections 5.7 and 5.8 as follows:

“5.7. Restricted Payments. Make Restricted Payments, and
permit each other Loan Party to make Restricted Payments, only to the
extent that the making of such Restricted Payments are permitted or
consented to under the UST Loan Agreement, each Permitted Refinancing
Document and each Additional US Government Debt Document.

5.8 Notices. (a) Promptly, but in any event within 10 days
thereof, give notice to the Agent of (i) the occurrence of any “Event
of Default”, as defined in the UST Loan Agreement, any Permitted
Refinancing Documents, any Additional US Government Debt Documents,
any Priming Facility or any Canadian Creditor Documents or (ii) any
failure by GM to comply with the Going Concern Provision; and (b)
promptly, but in any event within 15 days thereof, give notice to the
Agent of (i) the occurrence of any “Termination Event”, as defined in
the UST Loan Agreement, any Permitted Refinancing Documents, any
Additional US Government Debt Documents, any Priming Facility or any
Canadian Creditor Documents or (ii) any amendment to or waiver of the
Going Concern Provision; provided that the foregoing
obligations to give notice shall apply to GM Canada only to the
extent it has knowledge of such event.”.

     2.10 Amendment to Subsection 6.1 (Mergers, Consolidations, etc.). Subsection 6.1 of
the Credit Agreement is hereby by deleting it in its entirety and inserting in lieu thereof the
following:

“GM will not, and GM will not permit any other Loan Party to, merge
or consolidate with any other Person or sell or convey all or
substantially all of its assets to any Person unless, in the case of
mergers and consolidations, (a)(i) a Loan Party shall be the
continuing corporation,

12

 

(ii) with respect to a merger between GM
Canada and a Loan Party (other than GM), GM Canada shall be the
continuing corporation and (iii) with respect to a merger between GM
and any other Loan Party, GM shall be the continuing corporation, (b)
immediately before and immediately after giving effect to such merger
or consolidation, no Default or Event of Default shall have occurred
and be continuing and (c) the guarantees provided in Section 9
hereof, the UST-Related Security Agreement and any Guaranty Document
shall be in full force and effect immediately after giving effect to
such merger or consolidation, except in the case of a merger of a
Loan Party into a Person guaranteeing such Loan Party’s Obligations
pursuant to Section 9 hereof, the UST-Related Security Agreement or a
Guaranty Document, to the extent such merger is otherwise permitted
hereunder.”.

     2.11 Amendment to Subsection 6.2 (Limitation on Liens). Subsection 6.2 of the Credit
Agreement is hereby amended by:

     (a) inserting at the end of clause (a) thereof the following:

“Notwithstanding anything herein to the contrary, the restrictions
contemplated by this subsection 6.2(a) shall cease to apply when
either (i) a Lien on any Principal Domestic Manufacturing Property is
granted to secure obligations in connection with any balance sheet
restructuring by GM and any of its creditors or (ii) all
substantially similar restrictions under Indebtedness of GM
outstanding on the First Amendment Effective Date cease to be
applicable and GM has delivered to the Agent a certificate of a
Financial Officer to such effect.”;

     (b) deleting the word “and” at the end of clause (b)(xv) thereof; and

     (c) designating the existing clause (b)(xvi) thereof as clause (b)(xviii) and inserting prior
thereto the following new clauses (b)(xvi) and (b)(xvii):

“(xvi) Liens securing the obligations under the UST Loan Documents,
the Additional US Government Debt Documents and any Permitted
Refinancing Documents; provided that any such Liens upon the
Collateral (x) shall be junior in priority to both the Liens securing
the Total Secured Exposure and the Hedging Obligations and (y) are
subject to the Intercreditor Agreement or an intercreditor agreement
with the Agent in form and substance reasonably acceptable to the
Agent;

“(xvii) Liens securing any Additional Canadian Obligations;
provided that (x) any such Liens upon the Collateral shall be
junior in priority to the Liens securing the Canadian Total Secured
Exposure and (y) the rights in respect of such Liens upon the
Collateral are subject to an intercreditor agreement with the Agent
in form and substance reasonably acceptable to the Agent; and”.

     2.12 Amendment to Subsection 6.4 (Limitations on Dispositions of Collateral).
Subsection 6.4 of the Credit Agreement is hereby amended by deleting the words “any disposition to
any

13

 

Loan Party” and inserting in lieu thereof “any Disposition to any of GM, GM Canada and Saturn”
in clause (e) thereof.

     2.13 Other Amendments to Section 6 (Negative Covenants). Section 6 of the Credit
Agreement is hereby amended by inserting at the end thereof new subsection 6.10 as follows:

“6.10. Prepayments of Permitted Refinancing Debt. GM will
not, and will not permit any Subsidiary to optionally prepay,
repurchase, redeem or otherwise optionally satisfy or defease with
cash any Subject Debt Tranche (a “Prepayment”), if on the
date of such Prepayment more than 50% of such Subject Debt Tranche is
held by Person(s) which are in each case, both a Non-US Governmental
Authority and a Non-Canadian Governmental Authority, unless GM shall, or shall cause GM
Canada to, simultaneously (a) ratably prepay the US Secured Loans
and/or Canadian/US Secured Loans made to GM or GM Canada, as
applicable (or, to the extent required by subsection 2.8(e), cash
collateralize the L/C Obligations issued on behalf of GM or GM
Canada, as applicable) in an amount equal to the lesser of (x) the
Prepayment Amount and (y) an amount equal to the Prepayment
Percentage of the Extended Secured Commitments then in effect, and
(b) permanently reduce the Commitments under the applicable Tranche
by the amount of such prepayment or cash collateralization;
provided that the foregoing requirements shall not apply to
any prepayment of any Subject Debt Tranche that is a revolving
facility so long as the commitments under such facility are not
permanently reduced or terminated as a result of such prepayment.”

     2.14 Amendment to Section 7 (Events of Default). Section 7 of the Credit Agreement is
hereby amended by:

     (a) deleting clause (c) in its entirety and inserting in lieu thereof the following:

“(c) Any Loan Party shall default in the observance or performance of
any other agreement contained in this Agreement or any Security
Document (other than as provided in paragraphs (a) or (b) of this
Section 7) and (i) in the case of any default in the observance or
performance of the covenants in subsections 5.7, 5.8, 6.6, 6.7, 6.8
or 6.10 of this Agreement, such default shall continue unremedied for
a period of five (5) Business Days, and (ii) in the case of any
default in the observance or performance of any other agreement
contained in this Agreement or any Security Document, such default
shall continue unremedied for a period of 30 days after written
notice thereof shall have been given to such Loan Party by the Agent
or the Majority Lenders; or”;

     (b) deleting clause (h) in its entirety and inserting in lieu thereof the following:

“any guarantee contained in (i) Section 9 hereof, (ii) the
UST-Related Security Agreement or (iii) any Guaranty Document shall
cease, for any reason, to be in full force and effect (other than (x)
as a result of a
transaction permitted by subsection 6.1 hereof or (y) with respect to
any guarantee obligation arising under the UST-Related Security
Agreement

14

 

or any Guaranty Document, to the extent that the UST Agent
and each Additional US Government Creditor, as applicable, releases
such guarantee (other than the guarantee from Saturn or GM (except as
permitted by clause (x) of this Section 7(h))) or any Loan Party or
any Subsidiary of a Loan Party shall so assert; or”; and

     (c) inserting the following new clauses (i) and (j) in the appropriate order:

“(i) an “Event of Default” (as defined in the UST Loan Agreement, any
Additional US Government Debt Document, any Permitted Refinancing
Document or any Canadian Creditor Document) shall have occurred and
shall continue for 20 Business Days; or

(j) GM shall fail to comply with the Going Concern Provision and such
failure shall not have been cured or waived by the agent or lenders
under the PP&E Term Loan Agreement within a period of 15 days
following such failure (or such shorter period ending on the date, if
any, on which the agent or the requisite lenders thereunder deliver a
notice of default to GM with respect to the failure to comply with
the Going Concern Provision) (the “Initial Grace Period”),
and after the end of the Initial Grace Period (regardless of whether
such default is waived by the agent or the lenders under the PP&E
Term Loan Agreement after the end of the Initial Grace Period), such
default shall continue for a period of 30 days after the earliest of
written notice from the Agent, the Majority Lenders or the agent or
the requisite lenders under the PP&E Term Loan Agreement;”.

     2.15 Amendment to Subsection 10.13 (Releases of Guarantees and Liens). Subsection
10.13 of the Credit Agreement is hereby amended by inserting at the end thereof a new clause (f) as
follows:

“(f) Notwithstanding anything to the contrary contained herein or in
any other Loan Document, the Agent will, and is hereby irrevocably
authorized by each Lender (without requirement of notice to or
consent of any Lender) to, take any action requested by GM or any
other Loan Party having the effect of releasing any Additional
Collateral or any guarantee of a Loan Party (other than the
guarantees from Saturn or GM (except as otherwise permitted by
another paragraph of this subsection 10.13)), to the extent that no
outstanding UST Secured Obligation is secured by a Lien on such
Additional Collateral or has the benefit of such guarantee and GM so
certifies to the Agent (and the Agent may rely conclusively on any
such certificate, without further inquiry). In no event shall any
agreement by any UST Secured Party to subordinate its first priority
Lien on any Additional Collateral result in an obligation on the part
of the Agent under this subsection 10.13 to release its junior Lien
on such Additional Collateral, which junior Lien shall continue
unimpaired notwithstanding the agreement by such UST Secured Party to
subordinate its first priority Lien on such Additional Collateral.”.

15

 

SECTION 3. MISCELLANEOUS

     3.1 Consent. The Lenders hereby (i) consent to the execution and delivery by the
Agent of an intercreditor agreement with the United States Department of the Treasury substantially
on the terms attached hereto as Exhibit A (the “Intercreditor Agreement”; and together with
this Amendment, the “Amendment Documents”) and (ii) authorize the Agent to enter into (x)
any UST-Related Security Documents and (y) any intercreditor agreement contemplated by this
Amendment with the holders of any Additional Canadian Obligations or any Priming Facility.

     3.2 Conditions Precedent; Effectiveness. This Amendment shall become effective on the
date that: (i) the Agent shall have received executed signature pages to this Amendment from
Lenders constituting the Majority US Secured Lenders and the Majority Canadian/US Secured Lenders,
(ii) the Agent shall have received executed copies of the Intercreditor Agreement, (iii) the Agent
shall have received the documents required by subsection 5.5(d)(i) of the Credit Agreement (as
amended by the First Amendment), (iv) the Lenders shall have received copies of the executed UST
Loan Agreement and all loan and security documents related thereto (but excluding all schedules and
exhibits thereto that are not publicly available other than those relating to the Additional
Collateral) and (v) each Secured Lender that has provided its written consent to this Amendment on
or prior to 5:00 p.m. EST on the First Amendment Effective Date shall have received an amendment
fee (or the Agent shall have received such fee for the account of such Secured Lender) in an amount
equal to 0.50% of such Secured Lender’s Extended Secured Commitments.

     3.3 Representations and Warranties. Each Loan Party hereby represents and warrants
that, on the date hereof after giving effect to the provisions of this Amendment, (a) each of the
representations and warranties made by any Loan Party in the Credit Agreement, as amended by this
Amendment (other than to the extent enforceability of the default interest rate contemplated by
amended subsection 2.12(f) may be limited by Canadian law), are true and correct in all material
respects on and as of the date hereof 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 and
(b) no Default or Event of Default has occurred and is continuing.

     3.4 Continuing Effect of the Loan Documents. This Amendment shall not constitute an
amendment of any other provisions of the Loan Documents not expressly referred to herein and shall
not be construed as a waiver or consent to any further or future action on the part of any Loan
Party that would require the consent of the Lenders or the Agent. Except as expressly amended
hereby, the provisions each of the Loan Documents are and shall remain in full force and effect.

     3.5 Counterparts. This Amendment may be executed by the parties hereto in any number
of separate counterparts (including facsimiled or electronic PDF counterparts), each of which shall
be deemed to be an original, and all of which taken together shall be deemed to constitute one and
the same instrument.

     3.6 Expenses. Each of the Loan Parties agrees to pay or reimburse the Agent for all
of their reasonable out-of-pocket costs and expenses incurred in connection with the preparation,
negotiation and execution of this Amendment, including, without limitation, the reasonable fees and
disbursements of counsel to the Agent.

     3.7 Limited Effect. Except as expressly modified by this Amendment, each of the Loan
Documents are ratified and confirmed and are, and shall continue to be, in full force and effect in
accordance with their respective terms. Each Loan Party acknowledges and agrees that such Loan
Party

16

 

is truly and justly indebted to the Lenders and the Agent for the Obligations, without
defense, counterclaim or offset of any kind, other than as provided in the Loan Documents, and such
Loan Party ratifies and reaffirms the validity, enforceability and binding nature of such
Obligations. GM acknowledges and agrees that nothing in this Amendment shall constitute an
indication of the Lenders’ willingness to consent to any other amendment or waiver of any other
provision of any of the Loan Documents or a waiver of any Default or Event of Default. Nothing
contained in this Amendment or any other Amendment Document shall be construed as a waiver of any
rights the Agent, or any Lender may have to object in any insolvency proceeding under the
Bankruptcy Code or otherwise either (x) to any action taken by any US Governmental Authority or any
other lender or secured party under or in connection with the UST Loan Documents, any Permitted
Refinancing Document or any Additional US Government Debt Document, including the seeking by any
such entity to provide “debtor-in possession” or similar financing or of adequate protection or (y)
to the assertion by any such party of any of its rights and remedies under any UST Loan Document,
any Permitted Refinancing Document or any Additional US Government Debt Document in respect of
obligations under the UST Loan Documents, the Permitted Refinancing Documents or the Additional US
Government Debt Documents, respectively or otherwise; in each case except as provided in the
Intercreditor Agreement. All rights of the Agent and each Lender as a secured creditor in any
proceeding are expressly reserved.

     3.8 GOVERNING LAW. THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED
IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

[remainder of the page intentionally left blank]

17

 

     IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed and
delivered by their proper and duly authorized officers as of the day and year first above written.

	 	 	 	 	 
	 	GENERAL MOTORS CORPORATION,

as a Borrower and as a Guarantor

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	GENERAL MOTORS OF CANADA LIMITED,

as a Borrower

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	SATURN CORPORATION,

as a Guarantor

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	CITICORP USA, INC.,

as Agent and as a Lender

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	[INSERT LENDER NAME], as a Lender

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

 

 

	 	 	 	 	 

EXHIBIT A

INTERCREDITOR AGREEMENT

 

 

SCHEDULE 1

EXCLUDED REAL PROPERTIES

Tyco Property

312, 313 and 314 Constitution

Menlo Park, CA

Gilroy Dealership

6720 Bearcat Court

Gilroy, CA

Indianapolis Dealership

7250 N. Keystone Avenue

Indianapolis, IN

Kendall Chevrolet Dealership

8455 South Dixie Highway

Miami, FL

GM Powertrain Saginaw

77 West Center Street

Saginaw, MI

Additional real properties owned by GM or any other Loan Party which (i) are located in a flood
zone and (ii) are not vacant and/or undeveloped land.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00153-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00153-of-00352.parquet"}]]