Document:

exv10w1

Exhibit 10.1

Execution Version

MEMORANDUM OF AGREEMENT

     THIS MEMORANDUM OF AGREEMENT (this “Memorandum”), is made and entered into as of March
31, 2009, by and among EJ FUNDS LP (the “Investor”), AKORN, INC., a Louisiana corporation
(“Akorn”), AKORN (NEW JERSEY), INC., an Illinois corporation (“Akorn NJ”, and
together with Akorn, collectively, the “Borrowers”, and the Borrowers together with the
Investor, each a “Party” and collectively, the “Parties”).

     WHEREAS, the Borrowers are parties to a certain Credit Agreement (as amended, restated,
supplemented or otherwise modified from time to time, the “Credit Agreement”), dated as of
January 7, 2009, by and among the Borrowers, General Electric Capital Corporation, a Delaware
corporation, in its capacity as Agent (the “Agent”) for the lenders from time to time
parties thereto (the “Lenders”), and each of such Lenders party thereto, pursuant to which
the Lenders have made certain financial accommodations available to the Borrowers as described
therein (the “Credit Facility”) (unless otherwise specifically defined herein, each term
used herein which is defined in the Credit Agreement shall have the meaning assigned to such term
in the Credit Agreement); and

     WHEREAS, concurrently with the execution and delivery of this Memorandum, the Investor is
purchasing, assuming and acquiring from the Agent, and the Agent is selling, transferring and
assigning to the Investor, all of the Agent’s and the Lenders’ rights, title and interest in and to
the Credit Agreement, including, without limitation, the loans and other obligations of the
Borrowers outstanding thereunder (such assignment, the “Credit Agreement Assignment”).

     NOW, THEREFORE, the Parties hereby enter into this Memorandum on a non-binding basis (except
for Sections 2 through 8 hereof, which shall be binding and enforceable upon the
Parties) to set forth their expectations with respect to certain ongoing negotiations relating to
the Credit Facility:

          1. The Investor and the Borrowers shall move forward in good faith to negotiate and execute a
Forbearance, Registration and Investor Rights Agreement, in form reasonably acceptable to the
Parties (the “Forbearance Agreement”), which the Parties anticipate will provide for the
following terms, effective from and after the date the Forbearance Agreement is executed:

          (a) The Investor will agree, through the earlier of December 31, 2009 and the occurrence of
any Default or Event of Default (other than a Stipulated Default (as defined below)), (i) to
forbear from exercising any rights it may have under the Credit Facility that result from certain
Defaults or Events of Default to be agreed to by the Parties (collectively, the “Stipulated
Defaults”), and (ii) to fund requested Loans in accordance with the procedures of the Credit
Agreement provided that such Loans would not cause the aggregate outstanding principal balance of
the Revolving Credit Exposure to exceed the combined Revolving Loan Commitments of the Lenders, in
the amount of $5,650,000 (the “Aggregate Revolving Loan Commitment”).

 

 

          (b) Effective upon execution and delivery of the Forbearance Agreement, (i) the Unused
Commitment Fee will retroactively cease to accrue with respect to periods from and after the
execution of this Memorandum, and (ii) no Unused Commitment Fee shall henceforth be payable with
respect to periods from and after the date hereof. For the avoidance of doubt, the Investor shall
be entitled to receive all Unused Commitment Fees payable with respect to periods prior to the date
hereof.

          (c) The Investor will permanently waive the requirement, under Section 4.16(a) of the Credit
Agreement and paragraph (a) of Exhibit 4.11 thereto, that Borrowers obtain a control agreement with
respect to Disbursement Account #5590069497 with Bank of America, N.A., provided that the Borrowers
provide the Investor with reasonable assurances that such Disbursement Account is a zero-balance
account used solely as a payments account, to which funds are transferred only as and to the extent
that funds are required to honor checks presented for payment or the execution of payment orders.

          (d) The Parties will amend the terms of the Credit Facility (i) to amend the financial
covenants in Article 6 of the Credit Agreement, in light of recent financial results and revised
financial projections, to make them less burdensome to Borrowers, and (ii) otherwise to make
compliance with its provisions less burdensome to the conduct by the Borrowers of their day-to-day
operation.

          (e) Akorn shall issue to the Investor a warrant (the “Warrant”), which shall provide
for and be subject to the following terms and conditions:

               (i) The Warrant shall be immediately exercisable upon issuance and remain exercisable for a
period of five years, have a cashless exercise feature and a per share exercise price equal to the
closing trading price of Akorn’s common stock on the trading day immediately prior to signing the
Forbearance Agreement.

               (ii) The Warrant shall be exercisable for an aggregate number of shares equal to the product
of (i) a quotient (carried to the 9th decimal place) equal to (A) the Aggregate Revolving Loan
Commitment divided by (B) 1,000,000 times (ii) 300,000.

               (iii) The Warrant shall include typical registration rights (the terms of which shall be set
forth in the Forbearance Agreement) including, without limitation, the obligation of Akorn, upon
the Investor’s request, to file and keep effective a shelf Registration Statement on Form S-3 (the
“Shelf”), permitting resales and other transfers by the Investor and its affiliates of any
or all shares of capital stock of Akorn now held by the Investor or its affiliates including the
shares of common stock issuable upon the exercise or conversion of warrants and other securities.
The Forbearance Agreement shall include an undertaking for Akorn to keep the Shelf effective at all
times through the date that the Investor and its affiliates no longer hold any shares of capital
stock or securities convertible or exercisable into capital stock of Akorn.

               (iv) The Warrant shall also provide for standard dilution protection in the event of stock
dividends, stock-splits, reverse stock-splits, exchanges, reclassifications and other similar
events.

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          (f) In lieu of and not in addition to the board representation rights provided for in Section
2(b) of that certain Stock Purchase Agreement dated November 15, 1990 (the “Stock Purchase
Agreement”) between Akorn and John N. Kapoor Trust dated September 20, 1989, until the
occurrence of such conditions as the Parties, negotiating in good faith, may agree will cause such
rights to terminate (provided that the conditions, if any, resulting in the termination of the
Investor’s right to designate at least one director as set forth in this Section 1(f) shall
be no less beneficial to the Investor than the conditions provided for in Section 2(b) of the Stock
Purchase Agreement):

               (i) The Investor shall have the right to nominate three directors to serve on Akorn’s Board of
Directors, including current director Dr. John N. Kapoor and two other individuals reasonably
satisfactory to Akorn’s Board of Directors, (together with any successors that may be designated by
the Investor from time to time, collectively, the “Investor Designees”).

               (ii) At the request of the Investor, as soon as practicable but in no event later than ten
days after the request of the Investor, Akorn shall take such actions as may be necessary to (i)
amend Akorn’s Bylaws to increase the number of directors on the Board of Directors from seven to
nine and (ii) appoint the two Investor Designees (other than current director Dr. John N. Kapoor)
to fill the vacancies created by such increase until the next shareholder election of directors.

               (iii) With respect to each shareholder election of directors thereafter, including at each
annual or special meeting of shareholders of Akorn at which directors are elected, Akorn shall
cause its Board of Directors and management to (i) include each of the Investor Designees in the
slate of nominees recommended by the Board of Directors to Akorn’s shareholders for election as
directors, (ii) recommend to its shareholders that they vote for the Investor Designees as
directors of Akorn, (iii) vote all proxies it may hold in favor of the election of the Investor
Designees, except as otherwise directed by any shareholder who submits such proxy and (iv) use its
best efforts to cause the Investor Designees to be elected as directors.

               (iv) Akorn shall take no action that would cause its Board of Directors to exceed fifteen in
number without the consent of the Investor.

               (v) Notwithstanding the foregoing, Akorn shall not be required to nominate any Investor
Designees that may not, by virtue of any securities laws or rules of any exchange upon which
Akorn’s securities are listed or traded become a director of Akorn.

          (g) Unless accelerated by the Investor in accordance with the Credit Agreement, interest shall
accrue on the principal balance of all Loans and other obligations outstanding under the Credit
Facility from time to time at an annual rate of ten percent (10%), regardless of the absence or
existence of any Default or Event of Default, and shall be payable to the Investor, in arrears, on
the first Business Day of each calendar month.

          (h) As security for the obligations of Akorn to the Subordinated Lender under the Subordinated
Note and for the express benefit of the Subordinated Lender, the Borrowers will (i) grant to the
Investor, in its capacity as the Agent appointed pursuant to the Credit

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Agreement Assignment, a security interest in and lien upon all of the Collateral, and (ii)
acknowledge and agree that the Subordinated Note shall be entitled to the benefit of each and all
of the Collateral Documents.

          (i) If Akorn requests, and the Investor (and/or any of its affiliates then holding any portion
of the Aggregate Revolving Loan Commitment) elects, in its sole and absolute discretion, to make
Loans to the Borrowers under the Credit Agreement in amounts that exceed the Aggregate Revolving
Loan Commitment, the Investor or its affiliate, as the case may be, will be entitled to receive
additional warrants in the same proportions and with the same terms provided for in Section
1(e) above; provided, however, that the exercise price will be the closing price on the trading
day immediately prior to the date such additional loan is extended.

          2. Akorn shall reimburse the Investor and its affiliates for its documented fees and expenses
relating to the negotiation, execution and performance of the Credit Agreement Assignment, this
Memorandum, the Forbearance Agreement and any other agreements contemplated hereby or thereby,
including, without limitation, their attorneys’ fees and any exit fees and other expenses charged
by the Agent or the Lenders in connection with the Credit Agreement Assignment.

          3. The Investor hereby agrees, through April 10, 2009, (i) to forbear from exercising any
rights it may have under the Credit Facility that result from any Defaults or Events of Default,
and (ii) to fund requested Loans in accordance with the procedures of the Credit Agreement provided
that such Loans would not cause the aggregate outstanding principal balance of the Revolving Credit
Exposure to exceed the Aggregate Revolving Loan Commitment.

          4. This Memorandum may not be amended except by an instrument in writing signed on behalf of
each of the Parties. This Memorandum may be executed and delivered (including by facsimile or
e-mail transmission) in one or more counterparts, and by the different Parties in separate
counterparts, each of which when executed shall be deemed to be an original but all of which taken
together shall constitute one and the same agreement. Except as expressly provided for herein, all
of the terms and conditions of the Credit Agreement shall remain in full force and effect and shall
not be deemed to have been modified or amended by this Memorandum and the Investor’s purchase of
the Credit Facility shall not be deemed to be a novation of the Borrowers’ obligations thereunder.

          5. Except for Sections 2 through 8 hereof, which shall be binding and
enforceable upon the Parties, this Memorandum is non-binding and is not intended to constitute a
contract, or an offer to enter into a contract, be binding upon the parties, or create legal
obligations or rights whatsoever.

          6. Subject to such disclosure obligations of either Party as the relevant Party believes, in
its good faith opinion, are required or prudent under any law or regulation or the rules of any
stock exchange upon which its securities are listed, each of the Parties will cooperate with each
other in the development and distribution of all news releases and other public information
disclosures with respect to this Memorandum and any of the transactions contemplated by this
Memorandum, and no Party will make any such news release or public

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disclosure without first consulting with the other Party and receiving its consent (which
shall not be unreasonably withheld or delayed) and each Party shall coordinate with the other with
respect to any such news release or public disclosure.

          7. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN
ANY LEGAL PROCEEDING ARISING OUT OF OR RELATED TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED
HEREBY.

          8. This Memorandum shall be governed by, and construed in accordance with, the laws of the
State of New York applicable to contracts executed in and to be performed in that State.

[The remainder of this page has been left blank intentionally.]

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     IN WITNESS WHEREOF, the parties have caused this Memorandum to be duly executed as of the date
first written above.

	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	INVESTOR	 	EJ FUNDS LP,

a Delaware Limited Partnership	 	 
	 
	 	 	 	 	 	 
	 	 	By: EJ Financial Enterprises, Inc.,

its General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/John N. Kapoor	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	John N. Kapoor	 	 
	 

	 	Title:
	 	President	 	 
	 
	 	 	 	 	 	 
	BORROWERS	 	AKORN, INC.,

a Louisiana corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/Jeffrey A. Whitnell	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Jeffrey A. Whitnell	 	 
	 

	 	Title:
	 	Chief Financial Officer	 	 
	 
	 	 	 	 	 	 
	 	 	AKORN (NEW JERSEY), INC.,

an Illinois corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/Jeffrey A. Whitnell	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Jeffrey A. Whitnell	 	 
	 

	 	Title:
	 	Chief Financial Officer	 	 

[Signature Page to Memorandum of Agreement]exv10w2

Exhibit 10.2

Execution Version

ASSIGNMENT

     This ASSIGNMENT, dated as of the Effective Date, is entered into between General Electric
Capital Corporation (“the Assignor”) and EJ Funds LP (“the Assignee”).

     The parties hereto hereby agree as follows:

	 	 	 
	Borrowers:
	 	Akorn, Inc., a Louisiana corporation, and Akorn (New
Jersey), Inc., an Illinois corporation (the “Borrowers”)
	 
	 	 
	Agent:
	 	General Electric Capital Corporation, as agent for the
Lenders and L/C Issuers (in such capacity and together
with its successors and permitted assigns, the “Agent”)
	 
	 	 
	Credit Agreement:
	 	Credit Agreement, dated as of January 7, 2009, among the
Borrowers, the other Credit Parties party thereto, the
Lenders and L/C Issuers party thereto and the Agent (as
the same may be amended, restated, supplemented or
otherwise modified from time to time, the “Credit
Agreement”; capitalized terms used herein without
definition are used as defined in the Credit Agreement)
	 
	 	 
	Trade Date:
	 	March 31, 2009
	 
	 	 
	Effective Date:
	 	March 31, 2009
	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 		 	 	 
	 	 	 	Aggregate amount of	 	 	Aggregate amount of	 	 	 
	Revolving Loan/	 	 	Commitments or	 	 	Commitments or	 	 	 
	Commitment	 	 	principal amount of	 	 	principal amount of	 	 	 
	Assigned	 	 	Loans for all Lenders	 	 	Loans Assigned	 	 	Percentage Assigned
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Revolving 
Commitment
	 	 	$	25,000,000	 	 	 	$	25,000,000	 	 	 	 	100.00	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

     Section 1. Assignment. Assignor hereby sells and assigns to Assignee, and
Assignee hereby purchases and assumes from Assignor, Assignor’s rights and obligations in its
capacity as Lender under the Credit Agreement (including Liabilities owing to or by Assignor
thereunder) and the other Loan Documents, in each case to the extent related to the amounts
identified above (the “Assigned Interest”), for an amount equal to $5,508,704.11 (the
“Purchase Price”), which constitutes 100% of the principal amount outstanding under the
Revolving Commitment as of the date hereof, together with (a) all accrued and unpaid interest,
fees, expenses and other Obligations due and owing to the Assignor on the date hereof in any
capacity and (b) an exit fee in the amount of $25,000 (the “Exit Fee”). The Purchase Price
shall be paid in immediately available funds by wire transfer to the following account (the
“Collection Account”):

Deutsche Bank Trust Company Americas

New York, New York

ABA No. 021-001-033

 

 

Account Number: 50271079

Account Name: Akorn/HFS3010

The consummation of the assignment contemplated above is herein referred to as the
“Assignment”.

     Section 2. Representations, Warranties and Covenants of Assignor. Assignor
(a) represents and warrants to Assignee and the Agent that (i) it has full power and authority, and
has taken all actions necessary for it, to execute and deliver this Agreement and to consummate the
transactions contemplated hereby, (ii) it is the legal and beneficial owner of its Assigned
Interest and that such Assigned Interest is free and clear of any Lien and other adverse claims,
and (iii) by executing, signing and delivering this Agreement, the Person signing, executing and
delivering this Agreement on behalf of the Assignor is a duly authorized signatory for the Assignor
and is authorized to execute, sign and deliver this Agreement, (b) makes no other representation or
warranty and assumes no responsibility, including with respect to the aggregate amount of the Loans
and Commitments, the percentage of the Loans and Commitments represented by the amounts assigned,
any statements, representations and warranties made in or in connection with any Loan Document or
any other document or information furnished pursuant thereto, the execution, legality, validity,
enforceability or genuineness of any Loan Document or any document or information provided in
connection therewith, the existence, nature or value of any Collateral, the projected financial
performance of the Borrowers, and the existence of any Default or Event of Default under any Loan
Document, (c) assumes no responsibility (and makes no representation or warranty) with respect to
the financial condition of any Credit Party or the performance or nonperformance by any Credit
Party of any obligation under any Loan Document or any document provided in connection therewith
and (d) attaches any Notes held by it evidencing at least in part the Assigned Interest of such
Assignor (or, if applicable, an affidavit of loss or similar affidavit therefor) and requests that
the Agent exchange such Notes for new Notes in accordance with Section 1.2 of the Credit
Agreement.

     Section 3. Representations, Warranties and Covenants of Assignee. Assignee
(a) represents and warrants to Assignor and the Agent that (i) it has full power and authority, and
has taken all actions necessary for Assignee, to execute and deliver this Agreement and to
consummate the transactions contemplated hereby, (ii) it is not an Affiliate of a Lender, (iii) it
is sophisticated with respect to decisions to acquire assets of the type represented by the
Assigned Interest assigned to it hereunder and either Assignee or the Person exercising discretion
in making the decision for such assignment is experienced in acquiring assets of such type, (iv) by
executing, signing and delivering this Agreement, the Person signing, executing and delivering this
Agreement on behalf of the Assignee is a duly authorized signatory for the Assignee and is
authorized to execute, sign and deliver this Agreement and (v) both before and after giving effect
to this Agreement and the transactions contemplated hereby, it is Solvent and (b) appoints and
authorizes the Agent to take such action as administrative agent on its behalf and to exercise such
powers under the Loan Documents as are delegated to the Agent by the terms thereof, together with
such powers as are reasonably incidental thereto, (c) shall perform in accordance with their terms
all obligations that, by the terms of the Loan Documents, are required to be performed by it as a
Lender, (d) confirms it has received such documents and information as it has deemed appropriate to
make its own credit analysis and decision to enter into this Agreement and shall continue to make
its own credit decisions in taking or not taking any action under any Loan

2

 

Document independently and without reliance upon Agent, any L/C Issuer, any Lender or any
other Indemnitee and based on such documents and information as it shall deem appropriate at the
time, (e) acknowledges and agrees that, as a Lender, it may receive material non-public information
and confidential information concerning the Credit Parties and their Affiliates and their Stock and
agrees to use such information in accordance with Section 9.10 of the Credit Agreement, (f)
specifies as its applicable lending offices (and addresses for notices) the offices at the
addresses set forth beneath its name on the signature pages hereof and (g) to the extent required
pursuant to Section 10.1(f) of the Credit Agreement, attaches two completed originals of
Forms W-8ECI, W-8BEN, W-8IMY or W-9 and, if applicable, a portfolio interest exemption certificate.
The assignment fee of $3,500 required to be paid to the Agent under Section 9.9 of the Credit
Agreement is hereby waived by the Agent.

     Section 4. Representations, Warranties and Covenants of Borrowers. Attached
hereto as Exhibit A is the Borrowing Base Certificate delivered by the Borrowers to the
Agent pursuant to the Credit Agreement for the fiscal period ending February 28, 2009. Each
Borrower represents and warrants that the Borrowing Base, without giving effect to any Reserve and
calculated as of the date hereof, is not less than $18,049,369.

     Section 5. Conditions Precedent. This Agreement and the assignment
contemplated hereby shall not become effective until receipt by Assignor of the following, all of
which are material inducements to Assignor to enter into this Agreement:

     (a) a duly executed counterpart of this Agreement from the Borrowers and Assignee;

     (b) a notification letter to Bank of America, N.A. advising of the change of Agent and
providing updated collection account information, signed by all parties hereto (the “Bank
Account Letter”); and

     (c) the Purchase Price in immediately available funds in the Collection Account no later than
2:00 p.m. on the Effective Date.

     The effective date of the Assignment (the “Effective Date”) shall be March 31, 2009.

     Section 6. Register. This Agreement (including its attachments) will be
delivered to the Agent for its acceptance and recording in the Register promptly after this
Agreement becoming effective.

     Section 7. Effect. As of the Effective Date, (a) Assignee shall be a party to
the Credit Agreement and, to the extent provided in this Agreement, have the rights and obligations
of a Lender under the Credit Agreement and (b) Assignor shall, to the extent provided in this
Agreement, relinquish its rights (except those surviving the termination of the Commitments and
payment in full of the Obligations) and be released from its obligations under the Loan Documents
other than those obligations relating to events and circumstances occurring prior to the Effective
Date.

     Section 8. Distribution of Payments. Effective immediately after the
consummation of the Assignment, the Agent shall make all payments under the Loan Documents in
respect of each Assigned Interest to Assignee.

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     Section 9. Resignation of Agent and L/C Issuer. Effective immediately after
the consummation of the Assignment, General Electric Capital Corporation resigns as Agent and L/C
Issuer under the Credit Agreement (General Electric Capital Corporation, in its capacity as the
former Agent, referred to herein as the “Prior Agent”). This Section 9 shall constitute
notice of such resignation to the Borrowers and the Assignee for purposes of subsections (a) and
(c) of Section 8.9 of the Credit Agreement. Assignee, as the sole Lender under the Credit
Agreement, hereby designates itself as the successor Agent under the Credit Agreement pursuant to
Section 8.9(a) thereof (“New Agent”). Each Borrower consents to the appointment of
Assignee as Agent.

     Section 10. Delivery of Documents. Effective immediately after the
consummation of the Assignment, Prior Agent hereby agrees to deliver to New Agent, at the address
set forth on the signature pages to this Agreement, via overnight courier for delivery on
Wednesday, April 1, 2009, (i) the original stock certificate No. 1 evidencing 100 shares of Akorn
(New Jersey), Inc. (the “Stock Certificate”) and (ii) the original Revolving Note issued to
Assignor at closing. Promptly after the consummation of the Assignment, Prior Agent shall forward
the fully executed Bank Account Letter to Bank of America, N.A. via overnight courier and
telecopier. After the consummation of the Assignment, the Prior Agent will execute and delivery to
New Agent, at the request and expense of New Agent, such additional documents, instruments or
releases (all of which shall be prepared by New Agent, without recourse or warranty to the Prior
Agent and otherwise in form and substance reasonably satisfactory to the Prior Agent) as New Agent
may reasonably request to further evidence the assignment of all instruments of record in favor of
the Prior Agent with respect to the security interests and liens securing the obligations of the
Loan Parties under the Credit Agreement and the other related Loan Documents. Prior Agent
authorizes New Agent to file such assignments and amendments under the Uniform Commercial Code to
reflect the New Agent as secured party of record on all UCC financing statements of record naming
Prior Agent as secured party and a Loan Party as debtor.

     Section 11. Forwarding of Payments. Prior Agent hereby agrees to promptly
forward any payments received after the Effective Date with respect to the Assigned Interest
(together with any and all cash or cash equivalent collateral) to New Agent at:

	 	 	 	 
	 	Bank Name:
	 	Northern Trust Bank
	 	ABA:
	 	071000152
	 	Account No.:
	 	3800553104
	 	Account Name:
	 	EJ Funds LP / Akorn Sweep Account
	 	Bank Contact:
	 	Sander Pahlman
	 	 
	 	Tel # (847) 295 4394

     Section 12. Miscellaneous. (a) The parties hereto, to the extent permitted by
law, waive all right to trial by jury in any action, suit, or proceeding arising out of, in
connection with or relating to, the Assignment and any other transaction contemplated hereby. This
waiver applies to any action, suit or proceeding whether sounding in tort, contract or otherwise.

     (b) On and after the Effective Date, this Agreement shall be binding upon, and inure to the
benefit of, the Assignor, Assignee, the Agent and their Related Persons and their successors and
assigns.

4

 

     (c) This Agreement shall be governed by, and be construed and interpreted in accordance with,
the law of the State of New York.

     (d) This Agreement may be executed in any number of counterparts and by different parties in
separate counterparts, each of which when so executed shall be deemed to be an original and all of
which taken together shall constitute one and the same agreement.

     (e) Signature pages may be detached from multiple separate counterparts and attached to a
single counterpart. Delivery of an executed signature page of this Agreement by facsimile
transmission or Electronic Transmission shall be as effective as delivery of a manually executed
counterpart of this Agreement.

     (f) In consideration of Assignor entering into this Agreement, each Borrower hereby (a)
releases, acquits and forever discharges Assignor, in its capacity as Agent and a Lender, its
agents, employees, officers, directors, servants, representatives, attorneys, affiliates,
successors and assigns (collectively, the “Released Parties”) from any and all liabilities, claims,
suits, debts, liens, losses, causes of action, demands, rights, damages, costs and expenses of any
kind, character or nature whatsoever, known or unknown, fixed or contingent, that such Borrower may
have or claim to have now against Assignor or which might arise out of or be connected with any act
of commission or omission of Assignor existing or occurring on or prior to the date of this
Agreement, including, without limitation, any claims, liabilities or obligations relating to or
arising out of or in connection with the Loans, the Credit Agreement or the other Loan Documents
(including, without limitation, arising out of or in connection with the initiation, negotiation,
closing or administration of the transactions contemplated thereby or related thereto), from the
beginning of time until the execution and delivery of this release and the effectiveness of this
Agreement (the “Released Claims”) and (b) agree forever to refrain from commencing, instituting or
prosecuting any lawsuit, action or other proceeding against the Released Parties with respect to
any and all Released Claims.

     (g) In consideration of Assignor entering into this Agreement, Assignee hereby, except with
respect to the express representations and warranties made by Assignor under Section 2 hereof, (a)
releases, acquits and forever discharges Assignor (in its capacity as a Lender and Assignor and not
in its capacity as an Agent), its agents, employees, officers, directors, servants,
representatives, attorneys, affiliates, successors and assigns (collectively, the “Assignor
Released Parties”) from any and all liabilities, claims, suits, debts, liens, losses, causes of
action, demands, rights, damages, costs and expenses of any kind, character or nature whatsoever,
known or unknown, fixed or contingent, that Assignee may have or claim to have now against Assignor
or which might arise out of or be connected with any act of commission or omission of Assignor
existing or occurring on or prior to the date of this Agreement, including, without limitation, any
claims, liabilities or obligations relating to or arising out of or in connection with the Loans,
the Credit Agreement, this Agreement or the other Loan Documents (including, without limitation,
arising out of or in connection with the initiation, negotiation, closing or administration of the
transactions contemplated thereby or related thereto), from the beginning of time until the
execution and delivery of this release and the effectiveness of this Agreement (the “Assignor
Released Claims”) and (b) agree forever to refrain from commencing, instituting or prosecuting any
lawsuit, action or other proceeding against the Assignor Released Parties with respect to any and
all Assignor Released Claims.

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     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their
respective officers thereunto duly authorized, as of the date first above written.

	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	GENERAL ELECTRIC CAPITAL CORPORATION, as Assignor	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Dennis Cloud	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Dennis Cloud	 	 
	 

	 	 	 	Title: Duly Authorized Signatory	 	 
	 
	 	 	 	 	 	 
	 	 	EJ FUNDS LP, as Assignee	 	 
	 
	 	 	 	 	 	 
	 	 	By: EJ Financial Enterprises, Inc.	 	 
	 	 	Its: General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ John N. Kapoor	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: John N. Kapoor	 	 
	 

	 	 	 	Title: President	 	 
	 
	 	 	 	 	 	 
	 	 	Lending Office (and
address for notices)for any other
purpose:
	 	 
	 
	 	 	 	 	 	 
	 	 	EJ Funds LP	 	 
	 	 	225 East Deerpath Road, Suite 250	 	 
	 	 	Lake Forest, IL 60045	 	 
	 	 	Attention: Rao Akella	 	 
	 	 	Fax # (847) 295 8680	 	 

 

 

ACCEPTED and AGREED

this 31st day of March, 2009:

GENERAL ELECTRIC CAPITAL CORPORATION

as Agent

	 	 	 	 	 
	By:
	 	/s/ Dennis Cloud
 

	 	 
	 	 	Name: Dennis Cloud	 	 
	 	 	Title: Duly Authorized Signatory	 	 
	 	 	 	 	 
	AKORN, INC.	 	 
	 	 	 	 	 
	By:
	 	/s/ Jeffrey A. Whitnell
 

	 	 
	 	 	Name: Jeffrey A. Whitnell	 	 
	 	 	Title: Chief Financial Officer	 	 
	 	 	 	 	 
	AKORN (NEW JERSEY), INC.	 	 
	 	 	 	 	 
	By:
	 	/s/ Jeffrey A. Whitnell
 

	 	 
	 	 	Name: Jeffrey A. Whitnell	 	 
	 	 	Title: Chief Financial Officer	 	 

 

 

Exhibit A

[attach Borrowing Base Certificate]

Exhibit A

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00157-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00157-of-00352.parquet"}]]