On October 28, 2021, Cumberland Pharmaceuticals Inc. entered into a Fourth Amendment to the Revolving Credit Note and Fifth Amendment (“Fifth Amendment”) to the Revolving Credit Loan Agreement with Pinnacle Bank (the “Pinnacle Agreement”). The original Pinnacle Agreement was dated July 31, 2017. The Fifth Amendment provides for a principal available for borrowing of up to $15 million.

Cumberland has the right to request an increase of up to an additional $5 million, upon the satisfaction of certain conditions and approval by Pinnacle Bank. If fully expanded, the Fifth Amendment would provide a maximum principal available for borrowing of up to $20 million, which was also the maximum aggregate principal available for borrowing under the previously amended Pinnacle Agreement. The Fifth Amendment extends the maturity date three years through October 1, 2024.

The interest rate on the Pinnacle Agreement, as amended, is based on Benchmark plus the Applicable Margin. Cumberland is subject to a financial covenant, maintenance of either the Funded Debt Ratio or a Tangible Capital Ratio, as defined, determined on a quarterly basis. The interest rate on funds borrowed under the facility ranges from 30-day LIBOR plus 175 to 275 basis points depending on the funded debt ratio.

Borrowings under the line of credit are collateralized by substantially all of the Company's assets.