Letter of Financial Support from Galen Partners III, Care Capital LLC, and Essex Woodlands Health Ventures to Halsey Drug Company

Summary

Galen Partners III, L.P., Care Capital LLC, and Essex Woodlands Health Ventures have sent a letter to Halsey Drug Company, offering financial support to help meet the company's working capital needs through the end of 2003. The investors are willing to provide up to $8.6 million if needed, with specific maximum contributions from each investor. This commitment will end if Halsey raises $8.6 million or more from other sources before year-end. The terms of any funding will be mutually agreed upon by Halsey and the investors.

EX-10.10 11 y99512exv10w10.txt LETTER OF SUPPORT IN FAVOR OF HALSEY DRUG CO., INC. EXHIBIT 10.10 May 5, 2003 Mr. Peter Clemens Chief Financial Officer Halsey Drug Company 695 North Perryville Road Rockford, IL 61107 Dear Peter: We are aware that Halsey Drug Company is in the process of seeking to attract significant funding from outside investors to meet its near term capital requirements. Care Capital LLC, Essex Woodlands Health Ventures and Galen Partners III, L.P. (the "Investors") encourages this effort and, in order to help facilitate this process and provide additional support to the financial stability of the Company, the Investors are willing to provide a level of financial assistance as may be required to help the Company meet working capital needs through the remainder of the 2003 fiscal year ending December 31, 2003. This willingness is based on the Investors' assumption that Halsey's projected needs will not exceed a total of $8.6 million during such period, assuming no other funding is raised. If the Company completes an equity financing of $8.6 million or more prior to the end of 2003, this commitment will expire at that time. If less then $8.6 million is raised in the financing and if a portion of the shortfall is nevertheless required for the Company to meet its near term capital requirements, the Investors will be committed to provide such shortfall, limited to $2 million from Galen Partners III, L.P., $4.6 million from Essex Woodlands Health Ventures, and $2 million from Care Capital LLC, on terms mutually acceptable to Halsey and the Investor group. Sincerely, Galen Partners III, L.P. Care Capital LLC Essex Woodlands Health Ventures Fund V, L.P. /s/ Bruce F. Wesson /s/ David R. Ramsay /s/ Immanuel Thangaraj - -------------------- ------------------- ---------------------- Bruce F. Wesson David R. Ramsay Immanuel Thangaraj General Partner Partner Managing Director