Overadvance Repayment Agreement between CIT Group/Business Credit, Inc. and Pharmaceutical Formulations, Inc.

Summary

This agreement is between CIT Group/Business Credit, Inc. and Pharmaceutical Formulations, Inc. It modifies the repayment terms for a $2,650,000 overadvance, requiring monthly payments of $100,000 starting June 1, 2000. The agreement is effective only if ICC Industries, Inc. increases its guaranty from $2,000,000 to $2,500,000. All other terms of the original loan and overadvance agreements remain unchanged.

EX-10.3(L) 5 0005.txt Exhibit 10.3(L) CIT Business Credit T: 212-536-120 1211 Avenue of the Americas New York, NY 10036 CIT May 19, 2000 PHARMACEUTICAL FORMULATION, INC. 460 Plainfield Avenue Edison, NJ 08817 Ladies and Gentlemen: Reference is made to the (i) Loan and Security Agreement between you and us, as successor by merger to The CIT Group/Credit Finance, Inc., dated August 4, 1989, as supplemented and amended (the "Loan Agreement") and (ii) the letter agreement between us dated April 26, 1999 with respect to a certain Overadvance (the "Overadvance Letter"). Capitalized terms used and not otherwise defined herein shall have the same meanings given them in the Loan Agreement and/or the Overadvance Letter. Notwithstanding any provision to the contrary in the Overadvance Letter it is hereby mutually agreed that, the current outstanding balance of the Overadvance which is $2,650,000.00 and is due and payable to us without offset, counterclaim or deduction, shall be repaid in monthly installments of $100,000.00 on the first business day of each month commencing on June 1, 2000. The effectiveness of this agreement shall be subject to our receipt of an amendment (in form and substance satisfactory to us) increasing the Guaranty executed by ICC Industries, Inc. from $2,000,000.00 to $2,500,000.00. Except as herein specifically provided, the Loan Agreement and/or the Overadvance Letter shall remain in full force and effect in accordance with their terms and no other changes in or waivers of the terms or provisions of the Loan Agreement and/or the Overadvance Letter are intended or implied. Nothing contained herein shall or shall be deemed to waive, release or modify any right or remedy to either party under the Loan Agreement or applicable law. If you are in agreement with the foregoing, please so indicate by signing and returning to us the enclosed copy of this letter. Very truly yours, THE CIT GROUP/BUSINESS CREDIT, INC. As successor by merger to The CIT Group/Credit Finance, Inc. By: /S/ _______________________________ Title: Assistant Vice President Read and Agreed to: PHARMACEUTICAL FORMULATIONS, INC. By: /S/ JOHN L. ORAM __________________________________ Title: Chairman