Document:

Exhibit 4.1
    

    
      

    

    
                THE SECURITIES REPRESENTED HEREBY MAY NOT BE TRANSFERRED
      UNLESS (I) SUCH SECURITIES HAVE BEEN REGISTERED FOR SALE PURSUANT TO THE
      SECURITIES ACT OF 1933, AS AMENDED, (II) SUCH SECURITIES MAY BE SOLD
      PURSUANT TO RULE 144, OR (III) THE COMPANY HAS RECEIVED AN OPINION OF
      COUNSEL REASONABLY SATISFACTORY TO IT THAT SUCH TRANSFER MAY LAWFULLY BE
      MADE WITHOUT REGISTRATION UNDER THE SECURITIES ACT OF 1933 OR
      QUALIFICATION UNDER APPLICABLE STATE SECURITIES LAWS.  
    

    
                SUBJECT TO THE PROVISIONS HEREIN, THIS WARRANT SHALL BE VOID
      AFTER 5:00 P.M. CENTRAL STANDARD TIME ON THE EXPIRATION DATE (as defined
      below).
    

    
      AKORN, INC.
    

    
      WARRANT TO PURCHASE SHARES OF
COMMON STOCK
    

    
                For VALUE RECEIVED, Serum Institute of India Ltd., a Company
      incorporated under the laws of India, having its principal place of
      business at S. No. 212/2, Off Soli Poonawalla Road, Hadapsar, Pune - 411
      028, Maharashtra, India (“Warrantholder”), is entitled to purchase,
      subject to the provisions of this Warrant, from Akorn, Inc., a Louisiana
      corporation (“Company”), up to 1,404,494 shares (“Warrant Shares”) of
      the Company’s Common Stock, no par value per share (“Common Stock”) at a
      purchase price per share equal to the Warrant Price (as defined
      below).  The number of Warrant Shares purchasable upon exercise of this
      Warrant and the Warrant Price (defined below) shall be subject to
      adjustment from time to time as described herein.  Unless otherwise
      defined herein, capitalized terms are as defined in the Purchase
      Agreement (defined below).
    

    
                Section 1.          Exercise
      Period and Price.  Warrantholder may purchase the Warrant Shares at
      any time, and from time to time, beginning on the date that is the fifth
      consecutive Trading Day that the closing price of the Common Stock, as
      reported on the primary Trading Market on which the Common Stock is then
      listed or quoted, is equal to or more than $2.22 per share (the fifth
      such day being the “Trigger Date”), but in no case later than 5:00 P.M.
      Central Standard Time on the Expiration Date (as defined below) (the
      “Exercise Period”), at an exercise price per share initially equal to
      $1.78 (the “Warrant Price”).  The Expiration Date means the earlier of:
      (i) March 10, 2013; and (ii) the date that is thirty (30) days following
      the Trigger Date.  
    

    
                Section 2.          Transfers.  As
      provided herein, this Warrant may be transferred only pursuant to a
      registration statement filed under the Securities Act of 1933, as
      amended (the “Securities Act”), or an exemption from such
      registration.  Subject to such restrictions, the Company shall transfer
      this Warrant from time to time upon the books to be maintained by the
      Company for that purpose, upon surrender thereof for transfer properly
      endorsed or  accompanied by appropriate instructions for transfer and
      such other documents as may be reasonably required by the Company,
      including, if required by the Company, an opinion of its counsel to the
      effect that such transfer is exempt from the registration requirements
      of the Securities Act, to establish that such transfer is being made in
      accordance with the terms hereof, and a new Warrant shall be issued to
      the transferee and the surrendered Warrant shall be canceled by the
      Company.
    

    
                Section 3.          Exercise
      of Warrant.  Subject to the provisions hereof, the Warrantholder may
      exercise this Warrant in whole or in part at any time during the
      Exercise Period upon surrender of the Warrant, together with delivery of
      the duly executed Warrant exercise form attached hereto as Appendix
      A (the “Exercise Agreement”) and payment by cash, certified
      check or wire transfer of funds for the aggregate Warrant Price for that
      number of Warrant Shares then being purchased, to the Company during
      normal business hours on any business day at the Company’s principal
      executive offices (or such other office or agency of the Company as it
      may designate by notice to the Warrantholder).  The Warrant Shares so
      purchased shall be deemed to be issued to the Warrantholder or the
      Warrantholder’s designee, as the record owner of such shares, as of the
      close of business on the date on which this Warrant shall have been
      surrendered (or the Warrantholder shall have delivered evidence of loss,
      theft or destruction thereof and security or indemnity satisfactory to
      the Company), the Warrant Price shall have been paid and the completed
      Exercise Agreement shall have been delivered.  Certificates for the
      Warrant Shares so purchased, representing the aggregate number of shares
      specified in the Exercise Agreement, shall be delivered to the
      Warrantholder within a reasonable time, not exceeding five (5) business
      days, after this Warrant shall have been so exercised (the “Warrant
      Share Delivery Date”).  The certificates so delivered shall be in such
      denominations as may be requested by the Warrantholder and shall be
      registered in the name of the Warrantholder or such other name as shall
      be designated by the Warrantholder.  If this Warrant shall have been
      exercised only in part, then, unless this Warrant has expired, the
      Company shall, at its expense, at the time of delivery of such
      certificates, deliver to the Warrantholder a new Warrant representing
      the number of shares with respect to which this Warrant shall not then
      have been exercised. As used herein, “business day” means a day, other
      than a Saturday or Sunday, on which banks in Chicago, Illinois are open
      for the general transaction of business.  If the Company fails to cause
      the certificate or the certificates representing the Warrant Shares to
      be delivered to the Warrantholder pursuant to this Section 3(a) by the
      Warrant Share Delivery Date, then, the Warrantholder will have the right
      to rescind such exercise.  If the Company fails for any reason to
      deliver to the Warrantholder certificates evidencing the Warrant Shares
      subject to an Exercise Agreement by the Warrant Share Delivery Date, the
      Company shall pay to the Warrantholder, in cash, as liquidated damages
      and not as penalty, for each $1,000 of Warrant Shares subject to such
      exercise (based on the Market Price of the Common Stock on the date of
      the applicable Exercise Agreement), $10 per Trading Day (increasing to
      $20 per Trading Day on the fifth Trading Day after such liquidated
      damages begin to accrue) for each Trading Day after such Warrant Share
      Delivery Date until such certificates are delivered or Warrantholder
      rescinds such exercise; provided, however, the Company shall not be
      required to pay any liquidated damages to the Warrantholder if the delay
      is caused due to a change in applicable law.
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
                Section 4.          Compliance
      with the Securities Act of 1933.  Except as provided in the
      Securities Purchase Agreement, dated March 10, 2010 (the “Purchase
      Agreement”), between the Company and the Warrantholder, the Company may
      cause the legend set forth on the first page of this Warrant to be set
      forth on each Warrant or similar legend on any security issued or
      issuable upon exercise of this Warrant, unless counsel for the Company
      is of the opinion as to any such security that such legend is
      unnecessary.
    

    
                Section 5.          Payment
      of Taxes.  The Company will pay any documentary stamp taxes
      attributable to the initial issuance of Warrant Shares issuable upon the
      exercise of the Warrant; provided, however, that the Company shall not
      be required to pay any tax or taxes which may be payable in respect of
      any transfer involved in the issuance or delivery of any certificates
      for Warrant Shares in a name other than that of the Warrantholder in
      respect of which such shares are issued, and in such case, the Company
      shall not be required to issue or deliver any certificate for Warrant
      Shares or any Warrant until the person requesting the same has paid to
      the Company the amount of such tax or has established to the Company’s
      reasonable satisfaction that such tax has been paid.  The Warrantholder
      shall be responsible for income taxes due under federal, state or other
      law, if any such tax is due.
    

    
                Section 6.          Mutilated
      or Missing Warrants.  In case this Warrant shall be mutilated, lost,
      stolen, or destroyed, the Company shall issue in exchange and
      substitution of and upon cancellation of the mutilated Warrant, or in
      lieu of and in substitution for the Warrant lost, stolen or destroyed, a
      new Warrant of like tenor and for the purchase of a like number of
      Warrant Shares, but only upon receipt of evidence reasonably
      satisfactory to the Company of such loss, theft or destruction of the
      Warrant, and with respect to a lost, stolen or destroyed Warrant,
      reasonable indemnity or bond with respect thereto, if requested by the
      Company.
    

    
                Section 7.          Reservation
      of Common Stock.  The Company hereby represents and warrants that
      there have been reserved, and the Company shall at all applicable times
      keep reserved until issued (if necessary) as contemplated by this
      Section 7, out of the authorized and unissued shares of Common Stock,
      sufficient shares to provide for the exercise of the rights of purchase
      represented by this Warrant.  The Company agrees that all Warrant Shares
      issued upon due exercise of the Warrant shall be, at the time of
      delivery of the certificates for such Warrant Shares, duly authorized,
      validly issued, fully paid and non-assessable shares of Common Stock of
      the Company.
    

    
      
        

        

      

      
        
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                Section 8.          Adjustments.  Subject
      and pursuant to the provisions of this Section 8, the Warrant Price and
      number of Warrant Shares subject to this Warrant shall be subject to
      adjustment from time to time as set forth hereinafter.
    

    
                          (a)       If the Company shall, at any time or from
      time to time while this Warrant is outstanding, pay a dividend or make a
      distribution on its Common Stock in shares of Common Stock, subdivide
      its outstanding shares of Common Stock into a greater number of shares
      or combine its outstanding shares of Common Stock into a smaller number
      of shares or issue by reclassification of its outstanding shares of
      Common Stock any shares of its capital stock (including any such
      reclassification in connection with a consolidation or merger in which
      the Company is the continuing corporation), then the number of Warrant
      Shares purchasable upon exercise of this Warrant and the Warrant Price
      in effect immediately prior to the date upon which such change shall
      become effective, shall be adjusted by the Company so that the
      Warrantholder thereafter exercising this Warrant shall be entitled to
      receive the number of shares of Common Stock or other capital stock
      which the Warrantholder would have received if this Warrant had been
      exercised immediately prior to such event upon payment of a Warrant
      Price that has been adjusted to reflect a fair allocation of the
      economics of such event to the Warrantholder.  Such adjustments shall be
      made successively whenever any event listed above shall occur.
    

    
                          (b)       If any capital reorganization,
      reclassification of the capital stock of the Company, consolidation or
      merger of the Company with another entity in which the Company is not
      the survivor, or sale, transfer or other disposition of all or
      substantially all of the Company’s assets to another entity shall be
      effected, then, as a condition of such reorganization, reclassification,
      consolidation, merger, sale, transfer or other disposition, lawful and
      adequate provision shall be made whereby each Warrantholder shall
      thereafter have the right to purchase and receive upon the basis and
      upon the terms and conditions herein specified and in lieu of the
      Warrant Shares immediately theretofore issuable upon exercise of the
      Warrant, such shares of stock, securities or assets as would have been
      issuable or payable with respect to or in exchange for a number of
      Warrant Shares equal to the number of Warrant Shares immediately
      theretofore issuable upon exercise of the Warrant, had such
      reorganization, reclassification, consolidation, merger, sale, transfer
      or other disposition not taken place, and in any such case appropriate
      provision shall be made with respect to the rights and interests of each
      Warrantholder to the end that the provisions hereof (including, without
      limitation, provision for adjustment of the Warrant Price) shall
      thereafter be applicable, as nearly equivalent as may be practicable in
      relation to any shares of stock, securities or assets thereafter
      deliverable upon the exercise hereof.  The Company shall not effect any
      such consolidation, merger, sale, transfer or other disposition unless
      prior to or simultaneously with the consummation thereof the successor
      entity (if other than the Company) resulting from such consolidation or
      merger, or the entity purchasing or otherwise acquiring such assets or
      other appropriate corporation or entity shall assume the obligation to
      deliver to the Warrantholder, at the last address of the Warrantholder
      appearing on the books of the Company, such shares of stock, securities
      or assets as, in accordance with the foregoing provisions, the
      Warrantholder may be entitled to purchase, and the other obligations
      under this Warrant.  The provisions of this paragraph (b) shall
      similarly apply to successive reorganizations, reclassifications,
      consolidations, mergers, sales, transfers or other dispositions.
    

    
                          (c)       In case the Company shall fix a payment
      date for the making of a distribution to all holders of Common Stock
      (including any such distribution made in connection with a consolidation
      or merger in which the Company is the continuing corporation) of
      evidences of indebtedness or assets (other than cash dividends or cash
      distributions payable out of consolidated earnings or earned surplus or
      dividends or distributions referred to in Section 8(a)), or subscription
      rights or warrants, the Warrant Price to be in effect after such payment
      date shall be determined by multiplying the Warrant Price in effect
      immediately prior to such payment date by a fraction, the numerator of
      which shall be the total number of shares of Common Stock outstanding
      multiplied by the Market Price per share of Common Stock immediately
      prior to such payment date, less the aggregate fair market value (as
      determined by the Company’s Board of Directors in good faith) of said
      assets or evidences of indebtedness so distributed, or of such
      subscription rights or warrants, and the denominator of which shall be
      the total number of shares of Common Stock outstanding multiplied by
      such Market Price per share of Common Stock immediately prior to such
      payment date.  “Market Price” as of a particular date (the “Valuation
      Date”) shall mean the following: (a) if the Common Stock is then listed
      or quoted on a Trading Market, the Market Price shall be the average of
      the closing sale price of one share of Common Stock on the primary
      Trading Market on which the Common Stock in then listed or quoted on the
      five (5) Trading Days prior to the Valuation Date, provided that if the
      Common Stock has not traded in the prior five (5) Trading Days, the
      Market Price shall be the average closing sale price of the Common Stock
      in the most recent five (5) Trading Days during which the Common Stock
      has traded; (b) if the Common Stock is not then listed or quoted on a
      Trading Market but the Common Stock is quoted on the OTC Bulletin Board
      (the “Bulletin Board”) or a similar exchange or association, the Market
      Price shall be the average of the closing sale price of one share of
      Common Stock as reported on the Bulletin Board or such similar exchange
      or association on the five (5) Trading Days prior to the Valuation Date,
      provided that if the closing sale price of the Common Stock is not so
      reported in the prior five (5) Trading Days, the Market Price shall be
      the average closing sale price of the Common Stock in the most recent
      five (5) Trading Days during which the closing sale price of the Common
      Stock has been so reported; or (c) if the Common Stock is not then
      listed or quoted on a Trading Market, the Bulletin Board or a similar
      exchange or association, the Market Price of one share of Common Stock
      as of the Valuation Date, shall be determined in good faith by the Board
      of Directors of the Company and the Warrantholder.  If the Common Stock
      is not then listed or quoted on a Trading Market, the Bulletin Board or
      a similar exchange or association, the Board of Directors of the Company
      shall respond promptly, in writing, to an inquiry by the Warrantholder
      prior to the exercise hereunder as to the Market Price of a share of
      Common Stock as determined by the Board of Directors of the Company.  In
      the event that the Board of Directors of the Company and the
      Warrantholder are unable to agree upon the Market Price in respect of
      subpart (c) hereof, the Company and the Warrantholder shall jointly
      select an appraiser, who is experienced in such matters.  The decision
      of such appraiser shall be final and conclusive, and the cost of such
      appraiser shall be borne equally by the Company and the
      Warrantholder.  Such adjustment shall be made successively whenever such
      a payment date is fixed.
    

    
      
        

        

      

      
        
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                          (d)       An adjustment to the Warrant Price shall
      become effective immediately after the payment date in the case of each
      dividend or distribution referred to in (c) hereof and immediately after
      the effective date of each other event referred to in (a) or (b) hereof
      which requires an adjustment.
    

    
                          (e)       In the event that, as a result of an
      adjustment made pursuant to this Section 8, the Warrantholder shall
      become entitled to receive any shares of capital stock of the Company
      other than shares of Common Stock, the number of such other shares so
      receivable upon exercise of this Warrant shall be subject thereafter to
      adjustment from time to time in a manner and on terms as nearly
      equivalent as practicable to the provisions with respect to the Warrant
      Shares contained in this Warrant.
    

    
                Section 9.          Fractional
      Interest.  The Company shall not be required to issue fractions of
      Warrant Shares upon the exercise of this Warrant.  If any fractional
      share of Common Stock would, except for the provisions of the first
      sentence of this Section 9, be deliverable upon such exercise, the
      Company, in lieu of delivering such fractional share, shall pay to the
      exercising Warrantholder an amount in cash equal to the Market Price of
      such fractional share of Common Stock on the date of exercise.
    

    
                Section 10.         Benefits.  Nothing
      in this Warrant shall be construed to give any person, firm or
      corporation (other than the Company and the Warrantholder) any legal or
      equitable right, remedy or claim, it being agreed that this Warrant
      shall be for the sole and exclusive benefit of the Company and the
      Warrantholder.
    

    
                Section 11.         Notices
      to Warrantholder.  Upon the happening of any event requiring an
      adjustment of the Warrant Price, the Company shall promptly give written
      notice thereof to the Warrantholder at the address appearing in the
      records of the Company, stating the adjusted Warrant Price and the
      adjusted number of Warrant Shares resulting from such event and setting
      forth in reasonable detail the method of calculation and the facts upon
      which such calculation is based.  Failure to give such notice to the
      Warrantholder or any defect therein shall not affect the legality or
      validity of the subject adjustment.
    

    
                Section 12.         Notices.  Unless
      otherwise provided, any notice required or permitted under this Warrant
      shall be given in writing and shall be deemed effectively given as
      hereinafter described on the earlier of (i) if given by personal
      delivery, then such notice shall be deemed given upon such delivery,
      (ii) if given by facsimile or electronic mail, then such notice shall be
      deemed given upon receipt of confirmation of complete transmittal, (iii)
      if given by mail, then such notice shall be deemed given upon the
      earlier of (A) receipt of such notice by the recipient or (B) three (3)
      days after such notice is deposited in first class mail, postage
      prepaid, (iv) if given by an internationally recognized overnight air
      courier, then such notice shall be deemed given one business day after
      delivery to such carrier, and (v) upon actual receipt by the party to
      whom the notice is required to be given.  All notices shall be addressed
      as follows: if to the Warrantholder, at its address as set forth in the
      Company’s books and records and, if to the Company, at the address as
      follows, or at such other address as the Warrantholder or the Company
      may designate by ten (10) days’ advance written notice to the other:
    

    
      
        

        

      

      
        
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          If to the Company:
        
	

        	
           
        	

        
	

        	

        	
          Akorn, Inc.
        
	

        	

        	
          1925 West Field Court
        
	

        	

        	
          Lake Forest, Illinois 60045
        
	

        	

        	
          Facsimile: (847) 353-4936
        
	

        	

        	
          Attention: Chief Financial Officer
        
	

        	

        	
           
        
	

        	
          With a copy to:
        
	

        	

        	
           
        
	

        	

        	
          Bryan Cave LLP
        
	

        	

        	
          161 North Clark Street, Suite 4300
        
	

        	

        	
          Chicago, Illinois 60601
        
	

        	

        	
          Facsimile: (312) 698-7425
        
	

        	

        	
          Attention: Don Figliulo, Esq.
        

    

    

    

    
                Section 13.         Successors.  All
      the covenants and provisions hereof by or for the benefit of the
      Warrantholder shall bind and inure to the benefit of its respective
      successors and permitted assigns hereunder.
    

    
                Section 14.         Governing
      Law; Consent to Jurisdiction; Waiver of Jury Trial.  This Warrant
      shall be governed by, and construed in accordance with, the internal
      laws of the State of Illinois, without reference to the choice of law
      provisions thereof.  The Company and, by accepting this Warrant, the
      Warrantholder, each irrevocably submits to the exclusive jurisdiction of
      the courts of the State of Illinois for the purpose of any suit, action,
      proceeding or judgment relating to or arising out of this Warrant and
      the transactions contemplated hereby.  Service of process in connection
      with any such suit, action or proceeding may be served on each party
      hereto anywhere in the world by the same methods as are specified for
      the giving of notices under this Warrant.  The Company and, by accepting
      this Warrant, the Warrantholder, each irrevocably consents to the
      jurisdiction of any such court in any such suit, action or proceeding
      and to the laying of venue in such court.  The Company and, by accepting
      this Warrant, the Warrantholder, each irrevocably waives any objection
      to the laying of venue of any such suit, action or proceeding brought in
      such courts and irrevocably waives any claim that any such suit, action
      or proceeding brought in any such court has been brought in an
      inconvenient forum. EACH OF THE COMPANY AND, BY ITS ACCEPTANCE
      HEREOF, THE WARRANTHOLDER HEREBY WAIVES ANY RIGHT TO REQUEST A TRIAL BY
      JURY IN ANY LITIGATION WITH RESPECT TO THIS WARRANT AND REPRESENTS THAT
      COUNSEL HAS BEEN CONSULTED SPECIFICALLY AS TO THIS WAIVER.   
    

    
                Section 15.         No
      Rights as Stockholder.  Prior to the exercise of this Warrant, the
      Warrantholder shall not have or exercise any rights as a stockholder of
      the Company by virtue of its ownership of this Warrant.
    

    
                Section 16.         Modification
      and Waiver.  This Warrant and any provision hereof may be changed,
      waived, discharged or terminated only by an instrument in writing signed
      by the Company and the then current Warrantholder, and such change,
      waiver, discharge or termination shall be binding on all future
      Warrantholders.  
    

    
                Section 17.         Section
      Headings.  The section headings in this Warrant are for the
      convenience of the Company and the Warrantholder and in no way alter,
      modify, amend, limit or restrict the provisions hereof.
    

    
      [signature page follows]
    

    
      
        

        

      

      
        
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      IN WITNESS WHEREOF, the Company has caused this Warrant to be duly
      executed, as of the 10th day of March, 2010.
    

    

    

    
    	
           
        	
          AKORN, INC.
        
	

        	

        	
           
        	

        
	

        	

        	

        	
           
        
	

        	

        	

        	
           
        
	

        	
          
            By:
          

        	
          
             
          

        	

        
	

        	
          
            Name:
          

        	
          
            Timothy A. Dick
          

        
	

        	
          
            Title:
          

        	
          
            Chief Financial Officer
          

        
	

        	

        	
           
        

    

    
      
        

        

      

      
        
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      APPENDIX A
    

    
      Warrant Exercise Form
    

    
      To Akorn, Inc.
    

    
                Subject to its right of rescission under Section 7.12 of the
      Securities Purchase Agreement dated as of March 10, 2010 between the
      Company and Investor, the undersigned hereby irrevocably elects to
      exercise the right of purchase represented by the within Warrant
      (“Warrant”) for, and to purchase thereunder by the payment of the
      Warrant Price and surrender of the Warrant, _______________ shares of
      Common Stock (“Warrant Shares”) provided for therein and requests that
      certificates for the Warrant Shares be issued as follows:
    

    
                                    _______________________________
                              Name
    

    
                                    ________________________________
                              Address
    

    
                                    ________________________________
                              ________________________________
                              Federal
      Tax ID or Social Security No.
    

    
      and delivered by   (certified mail to the above address, or
                             (electronically
      (provide DWAC Instructions:__________________), or
                             (other
      (specify): __________________________________________).  
    

    
      and, if the number of Warrant Shares shall not be all the Warrant Shares
      purchasable upon exercise of the Warrant, that a new Warrant for the
      balance of the Warrant Shares purchasable upon exercise of this Warrant
      be registered in the name of the undersigned Warrantholder or the
      undersigned’s Assignee as below indicated and delivered to the address
      stated below.
    

    
    	
          Dated: ___________________, ____
        	
           
        	

        
	

        	

        	
           
        
	
          Note: The signature must correspond with
        	

        	
          Signature:_________________________
        
	
          the name of the Warrantholder as written
        	

        	

        
	
          on the first page of the Warrant in every
        	

        	
          ______________________________
        
	
          particular, without alteration or enlargement
        	

        	
          Name (please print)
        
	
          or any change whatever, unless the Warrant
        	

        	

        
	
          has been assigned.
        	

        	
          ______________________________
        
	

        	

        	
          ______________________________
        
	

        	

        	
          Address
        
	

        	

        	
          ______________________________
        
	

        	

        	
          Federal Identification or
        
	

        	

        	
          Social Security No.
        
	

        	

        	
           
        
	

        	

        	
          Assignee:
        
	

        	

        	
          _______________________________
        
	

        	

        	
          _______________________________
        
	

        	

        	
          _______________________________
        

    

    
      1Exhibit 10.1
    

    
      

      SECURITIES PURCHASE AGREEMENT
    

    
      SECURITIES PURCHASE AGREEMENT (the “Agreement”),
      dated as of March 10, 2010, by and among Akorn, Inc., a Louisiana
      corporation with headquarters located at 1925 West Field Court, Suite
      300, Lake Forest, Illinois 60045 (the “Company”), and Serum
      Institute of India Ltd., a Company incorporated under the laws of
      India, having its principal place of business at S. No. 212/2, Off Soli
      Poonawalla Road, Hadapsar, Pune - 411 028, Maharashtra, India (“Investor”).
    

    
      WHEREAS:
    

    
      A.        The Company and Investor are executing and delivering this
      Agreement in reliance upon the exemption from securities registration
      afforded by Section 4(2) of the Securities Act of 1933, as amended (the “Securities
      Act”), and Rule 506 of Regulation D (“Regulation D”)
      as promulgated by the United States Securities and Exchange Commission
      (the “Commission”) under the Securities Act.
    

    
      B.        Investor wishes to purchase, and the Company wishes to sell,
      upon the terms and conditions stated in this Agreement, that number of
      shares of the Common Stock, no par value per share, of the Company (the “Common
      Stock”), set forth opposite Investor’s name in column two (2) of Exhibit
      A (the “Common Shares”).
    

    
      C.        In connection with the purchase and sale of Common Stock,
      Investor wishes to purchase, and the Company wishes to sell, upon the
      terms and conditions stated in this Agreement, a detachable warrant to
      purchase up to TWO MILLION FIVE HUNDRED THOUSAND DOLLARS ($2,500,000)
      worth of Common Stock on the terms and conditions set forth in the form
      of Warrant attached hereto as Exhibit C (the “Warrant”).
    

    
      NOW, THEREFORE, IN CONSIDERATION of the mutual covenants contained in
      this Agreement, and for other good and valuable consideration the
      receipt and adequacy of which are hereby acknowledged, the Company and
      Investor agree as follows:
    

    
      ARTICLE I  
DEFINITIONS
    

    
         1.1  Definitions.  In addition to the
      terms defined elsewhere in this Agreement, the following terms have the
      meanings indicated:
    

    
      “Affiliate” means any Person that, directly or indirectly
      through one or more intermediaries, controls or is controlled by or is
      under common control with a Person, as such terms are used in and
      construed under Rule 144 under the Securities Act.
    

    
      “Business Day” means any day other than Saturday, Sunday or
      other day on which commercial banks in the city of Chicago, Illinois or
      Lake Forest, Illinois, are authorized or required by law to remain
      closed.
    

    
      “Closing” means the closing of the purchase and sale of the
      Common Shares and Warrant pursuant to Section 2.2 between the Company
      and Investor after satisfaction of the conditions to Closing set forth
      in Article V.
    

    
      “Closing Date” means such date on which all of the Closing
      conditions set forth in Article V are satisfied or waived.  The time of
      the Closing shall be 5:00 p.m., Chicago time on the Closing Date.
    

    
      “Commission” has the meaning set forth in the recitals.
    

    
      “Common Shares” has the meaning set forth in the recitals.
    

    
      “Common Stock” has the meaning set forth in the recitals.
    

    
      
        

        

      

      
        
          - 1 -
        

        
          

        

      

      
        

        

      

    

    
      “Company Counsel” means Bryan Cave LLP, counsel to the
      Company.
    

    
      “Convertible Securities” means any stock or securities
      (other than Options) convertible into or exercisable or exchangeable for
      Common Stock.
    

    
      “DWAC Fees” means fees payable to the Transfer Agent’s
      Deposit Withdrawal Agent for the electronic transmission of shares of
      Common Stock by crediting the account of Investor’s broker with
      Depository Trust Company Fast Automated Securities Transfer through the
      Transfer Agent’s Deposit Withdrawal Agent Commission system.
    

    
      “EJ Funds” means EJ Funds, LP, a Delaware limited
      partnership.
    

    
      “Eligible Market” means any of the New York Stock Exchange,
      the NYSE Amex Equities, the NASDAQ Global Select Market, the NASDAQ
      Global Market or the NASDAQ Capital Market.
    

    
      “Exchange Act” means the Securities Exchange Act of 1934,
      as amended and the rules and regulations promulgated thereunder.
    

    
      “8-K Filing” has the meaning set forth in Section 4.5.
    

    
      “FINRA” has the meaning set forth in Section 3.2(k).
    

    
      “Holders of Existing Rights” shall mean the Kapoor Trust,
      AEG Partners, LLC, former holders of the Series B Preferred Stock,
      former holders of the Series A Preferred Stock, current and former
      holders of warrants issued in connection with the Series B Preferred
      Stock, current and former holders of warrants issued in connection with
      the Series A Preferred Stock, the investors in the Company’s private
      offering pursuant to that certain Securities Purchase Agreement dated
      March 1, 2006, and Investor.
    

    
      “Intellectual Property Rights” has the meaning set forth in
      Section 3.1(p).
    

    
      “Kapoor Trust” means The John N. Kapoor Trust dated
      September 20, 1989.
    

    
      “Knowledge of the Company”, “to the knowledge of the
      Company”, “to the Company’s knowledge” or any phrase of similar import
      shall be deemed to mean only to the actual knowledge, without
      investigation or inquiry, of either of Rajat Rai, the Chief Executive
      Officer of the Company, or Timothy A. Dick, the Chief Financial Officer
      of the Company.
    

    
      “Lien” means any lien, charge, claim, security interest,
      encumbrance, right of first refusal or other restriction, except for any
      Permitted Liens.
    

    
      “Losses” means any and all losses, claims, damages,
      liabilities, settlement costs and expenses, including, without
      limitation, costs of preparation and reasonable attorneys’ fees.
    

    
      “Material Adverse Effect” has the meaning set forth in
      Section 3.1(b).
    

    
      “Material Permits” has the meaning set forth in Section
      3.1(w).
    

    
      “NASDAQ” means the NASDAQ Global Market.
    

    
      “Options” means any rights, warrants or options to
      subscribe for or purchase Common Stock or Convertible Securities.
    

    
      “Permitted Liens” means any Lien disclosed in or
      contemplated by the SEC Reports, and any Liens (i) in favor of EJ Funds
      LP or incurred in connection with the Senior Credit Agreement or the
      transactions associated therewith, and (ii) incurred in connection with,
      the Company’s mortgage agreement.
    

    
      
        

        

      

      
        
          - 2 -
        

        
          

        

      

      
        

        

      

    

    
      “Person” means any individual or corporation, partnership,
      trust, incorporated or unincorporated association, joint venture,
      limited liability company, or joint stock company.
    

    
      “Proceeding” means any action, claim, suit, investigation
      or proceeding (including, without limitation, an investigation or
      partial proceeding, such as a deposition).
    

    
      “Registrable Securities” means (i) the Common Shares, (ii)
      the Warrant, (iii) the Warrant Shares, and (iv) any other shares of
      Common Stock issued or issuable upon any stock split, dividend or other
      distribution, recapitalization or similar event with respect to the
      foregoing;
    

    
      “Registration Statement” has the meaning set forth in
      Section 6.1(a).
    

    
      “Restricted Securities” means (i) the Common Shares, (ii)
      the Warrant, (iii) the Warrant Shares, and (iv) any other shares of
      Common Stock issued or issuable upon any stock split, dividend or other
      distribution, recapitalization or similar event with respect to the
      foregoing; provided, however, that such Restricted Securities shall
      cease to be Restricted Securities (x) upon any sale pursuant to a
      registration statement under the Securities Act, Section 4(1) of the
      Securities Act or Rule 144 under the Securities Act or (y) at such time
      as they become eligible for sale under Rule 144(b)(1) under the
      Securities Act.
    

    
      “Restriction Period” has the meaning set forth in Section
      4.1(c).
    

    
      “Rule 144” and “Rule 415” means Rule 144
      and Rule 415, respectively, promulgated by the Commission pursuant to
      the Securities Act, as such Rules may be amended from time to time, or
      any similar rule or regulation hereafter adopted by the Commission
      having substantially the same effect as such Rule.
    

    
      “SEC Reports” has the meaning set forth in Section 3.1(g).
    

    
      “Securities Act” has the meaning set forth in the
      recitals.
    

    
      “Securities Laws” means the rules and regulations, existing
      on the date hereof, of the Securities Act and the Exchange Act, as
      amended.
    

    
      “Senior Credit Agreement” shall mean that certain Amended
      and Restated Credit Agreement dated as of August 17, 2009 by and among
      the Company, Akorn (New Jersey), Inc., the financial institutions from
      time to time party thereto, as lenders, and EJ Funds LP, for itself, as
      a lender and as agent for all lenders, as amended as of January 13,
      2010, as such Amended and Restated Credit Agreement may be further
      amended, or restated, supplemented or otherwise modified from time to
      time.
    

    
      “Series A Preferred Stock” means the Company’s Series A 6%
      Participating Convertible Preferred Stock.
    

    
      “Series B Preferred Stock” means the Company’s Series B 6%
      Participating Convertible Preferred Stock.
    

    
      “Shares” means shares of Common Stock.
    

    
      “Subsidiary” means any Person in which the Company,
      directly or indirectly, owns a majority of the capital stock or similar
      interest that would be disclosable pursuant to Regulation S-K, Item
      601(b)(21).
    

    
      “Trading Day” means (a) any day on which the Common Stock
      is listed or quoted and traded on its primary Trading Market, (b) if the
      Common Stock is not then listed or quoted and traded on any Eligible
      Market, then a day on which trading occurs on the NASDAQ Global Market
      (or any successor thereto), or (c) if trading ceases to occur on the
      NASDAQ Global Market (or any successor thereto), any Business Day.
    

    
      “Trading Market” means the NASDAQ Global Market or any
      other Eligible Market, or any national securities exchange, market or
      trading or quotation facility on which the Common Stock is then listed
      or quoted.
    

    
      
        

        

      

      
        
          - 3 -
        

        
          

        

      

      
        

        

      

    

    
      “Transaction Documents” means this Agreement, the Warrant,
      the schedules and exhibits attached hereto.
    

    
      “Transfer Agent” means Computershare Investor Services LLC,
      or any successor transfer agent for the Company.
    

    
      “Warrant” has the meaning set forth in the recitals.
    

    
      “Warrant Shares” means the shares of Common Stock issuable
      upon exercise of the Warrant.  
    

    
      ARTICLE II  
PURCHASE AND SALE
    

    
         2.1  Purchase Price.  Investor hereby
      agrees to pay to the Company cash in an amount equal to TWO MILLION FIVE
      HUNDRED THOUSAND DOLLARS ($2,500,000) (the “Purchase Price”), in United
      States dollars and in immediately available funds, by wire transfer to
      an account designated in writing to Investor by the Company for such
      purpose, in exchange for (i) the Common Shares, and (ii) the Warrant.
    

    
         2.2  Closing.  Subject to the terms
      and conditions set forth in this Agreement, at the Closing the Company
      shall issue and sell to Investor, and Investor shall purchase from the
      Company, the Common Shares and the Warrant.  The Closing Date shall be
      the date on which all of the Closing conditions set forth in Article V
      are satisfied or waived.  The Closing shall take place at the offices of
      Company Counsel or such other location as the parties shall mutually
      agree.
    

    
         2.3  Closing Deliveries.  
    

    
             (a)  At the Closing, the Company shall deliver or cause to be
      delivered to Investor the following:
    

    
                 (i)  one or more stock certificates (or facsimile copies
      thereof), with solely the restrictive legend provided in Section 4.1(b)
      hereof printed thereon, evidencing Common Shares registered in the name
      of Investor; and
    

    
                (ii)  a duly executed Warrant.
    

    
             (b)  At the Closing, Investor shall deliver or cause to be
      delivered to the Company the following:
    

    
                 (i)  the Purchase Price;
    

    
                (ii)  a completed copy of Exhibit
      B-1, Stock Certificate Questionnaire; and
    

    
               (iii)  a completed and executed copy of Exhibit
      B-2, Certificate for Corporate, Partnership, Trust, Foundation and
      Joint Investors.
    

    
      ARTICLE III  
REPRESENTATIONS AND WARRANTIES
    

    
         3.1  Representations and Warranties of
      the Company.  The Company hereby represents and warrants to Investor
      as follows:
    

    
             (a)  Subsidiaries.  The
      Company has no direct or indirect Subsidiaries other than those listed
      in Exhibit 21.1 to the Company’s Pre-effective Amendment to
      Registration Statement on Form S-1 filed October 13, 2004 (Commission
      file No. 333-119168).  All of the capital stock or comparable equity
      interests of each Subsidiary owned directly or indirectly by the Company
      are free and clear of any Lien and all the issued and outstanding shares
      of capital stock or comparable equity interest of each Subsidiary are
      validly issued and are fully paid, non-assessable and free of preemptive
      and similar rights.
    

    
      
        

        

      

      
        
          - 4 -
        

        
          

        

      

      
        

        

      

    

    
             (b)  Organization
      and Qualification.  Each of the Company and the Subsidiaries is an
      entity duly organized, validly existing and in good standing under the
      laws of the jurisdiction of its incorporation or organization (as
      applicable), with the requisite legal authority to own and use its
      properties and assets and to carry on its business as currently
      conducted.  Neither the Company nor any Subsidiary is in violation of
      any of the provisions of its respective certificate or articles of
      incorporation, bylaws or other organizational or charter
      documents.  Each of the Company and the Subsidiaries is duly qualified
      to do business and is in good standing as a foreign corporation or other
      entity in each jurisdiction in which the nature of the business
      conducted or property owned by it makes such qualification necessary,
      except where the failure to be so qualified or in good standing, as the
      case may be, could not, individually or in the aggregate, (i) materially
      and adversely affect the legality, validity or enforceability of any
      Transaction Document, (ii) have or result in a material adverse effect
      on the results of operations, assets, business or financial condition of
      the Company and the Subsidiaries, taken as a whole on a consolidated
      basis, or (iii) materially and adversely impair the Company’s ability to
      perform fully on a timely basis its obligations under any of the
      Transaction Documents (any of (i), (ii) or (iii), a “Material
      Adverse Effect”).
    

    
             (c)  Authorization;
      Enforcement.  The Company has the requisite corporate authority to
      enter into and to consummate the transactions contemplated by each of
      the Transaction Documents to which it is a party and otherwise to carry
      out its obligations hereunder and thereunder.  The execution and
      delivery of each of the Transaction Documents to which it is a party by
      the Company and the consummation by it of the transactions contemplated
      hereby and thereby have been (or upon delivery will be) duly authorized
      by all necessary action on the part of the Company and no further
      consent or action is, or will be, required by the Company, its Board of
      Directors or its stockholders.  Each of the Transaction Documents to
      which it is a party has been (or upon delivery will be) duly executed by
      the Company and is, or when delivered in accordance with the terms
      hereof, will constitute, the valid and binding obligation of the Company
      enforceable against the Company in accordance with its terms, except as
      may be limited by (i) applicable bankruptcy, insolvency, reorganization
      or other laws of general application relating to or affecting the
      enforcement of creditors rights generally, and (ii) the effect of rules
      of law governing the availability of specific performance, injunctive
      relief and other equitable remedies.
    

    
             (d)  No Conflicts.  The
      execution, delivery and performance of the Transaction Documents to
      which it is a party by the Company and the consummation by the Company
      of the transactions contemplated hereby and thereby do not, and will
      not, (i) conflict with or violate any provision of the Company’s or any
      Subsidiary’s certificate or articles of incorporation, bylaws or other
      organizational or charter documents, (ii) conflict with, or constitute a
      default (or an event that with notice or lapse of time or both would
      become a default) under, or give to others any rights of termination,
      amendment, acceleration or cancellation (with or without notice, lapse
      of time or both) of, any agreement, credit facility, debt or other
      instrument (evidencing a Company or Subsidiary debt or otherwise) or
      other understanding to which the Company or any Subsidiary is a party or
      by which any property or asset of the Company or any Subsidiary is
      bound, or affected, except to the extent that such conflict, default,
      termination, amendment, acceleration or cancellation right (A) could not
      reasonably be expected to have a Material Adverse Effect or (B) is
      waived pre-Closing, or (iii) result in a violation of any law, rule,
      regulation, order, judgment, injunction, decree or other restriction of
      any court or governmental authority to which the Company or a Subsidiary
      is subject (including federal and state securities laws and regulations
      and the rules and regulations of any self-regulatory organization to
      which the Company or its securities are subject), or by which any
      property or asset of the Company or a Subsidiary is bound or affected,
      except to the extent that such violation could not reasonably be
      expected to have a Material Adverse Effect.  The Common Shares, Warrant
      and Warrant Shares are duly authorized and, when issued and paid for in
      accordance with the Transaction Documents, will be duly and validly
      issued, fully paid and nonassessable, free and clear of all Liens and
      shall not be subject to preemptive or similar rights of stockholders.
    

    
             (e)  Filings,
      Consents and Approvals.  The Company is not required to obtain any
      consent, waiver, authorization or order of, give any notice to, or make
      any filing or registration with, any court or other federal, state,
      local or other governmental authority or other Person in connection with
      the execution, delivery and performance by the Company of the
      Transaction Documents, other than (i) filings required pursuant to
      Section 4.5 of this Agreement, (ii) the filing of Form D with the
      Commission and such filings as are required to be made under applicable
      state securities laws, (iii) the waiver and consent from each of the EJ
      Funds and the Kapoor Trust set forth in ARTICLE V of this Agreement, and
      (iv) notice to certain Holders of Existing Rights.
    

    
      
        

        

      

      
        
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             (f)  Capitalization.  The
      capitalization of the Company as of September 30, 2009, is as set forth
      in the most recent applicable SEC Report, increased as set forth in the
      next sentence.  The Company has not issued any capital stock since that
      date other than pursuant to (i) employee and director benefit plans
      disclosed in the SEC Reports, (ii) outstanding warrants, options or
      other securities disclosed in the SEC Reports, or (iii) transactions
      disclosed in the SEC Reports.  The outstanding shares of capital stock
      of the Company have been duly and validly issued and are fully paid and
      nonassessable, have been issued in compliance with all federal and state
      securities laws, and are not subject to any enforceable preemptive
      rights or similar rights to subscribe for or purchase securities granted
      by law.  Without limiting the foregoing, except as set forth in the SEC
      Reports, no preemptive right, co-sale right, right of first refusal,
      registration right, or other similar right exists with respect to the
      Common Shares, the Warrant, the Warrant Shares or the issuance and sale
      thereof.  Upon delivery, no further approval or authorization of any
      stockholder, the Board of Directors of the Company or others will be
      required for the issuance and sale of the Common Shares and the Warrant,
      including under Trading Market rules.  Except as disclosed in the SEC
      Reports, or in filings with the SEC under Sections 13 or 16 of the
      Exchange Act with respect to ownership of Company securities, there are
      no stockholders agreements, voting agreements or other similar
      agreements with respect to the Common Stock to which the Company is
      a  party or, to the knowledge of the Company, between or among any of
      the Company’s stockholders.
    

    
             (g)  SEC Reports;
      Financial Statements.  The Company has filed all reports required to
      be filed by it under the Exchange Act, including pursuant to Section
      13(a) or 15(d) thereof, for the twelve months preceding the date hereof
      (the foregoing materials (together with any materials filed by the
      Company under the Exchange Act and the Securities Act, whether or not
      required) being collectively referred to herein as the “SEC
      Reports”) on a timely basis or has received a valid extension of
      such time of filing and has filed any such SEC Reports prior to the
      expiration of any such extension.  As of their respective dates, the SEC
      Reports complied in all material respects with the requirements of the
      Securities Act and the Exchange Act and the rules and regulations of the
      Commission promulgated thereunder, and none of the SEC Reports, when
      filed, contained any untrue statement of a material fact or omitted to
      state a material fact required to be stated therein or necessary in
      order to make the statements therein, in the light of the circumstances
      under which they were made, not misleading.  The financial statements of
      the Company included in the reports required to be filed by the Company
      under the Exchange Act for the twenty-four (24) months preceding the
      date hereof comply in all material respects with applicable accounting
      requirements and the rules and regulations of the Commission with
      respect thereto as in effect at the time of filing.  Such financial
      statements have been prepared in accordance with United States generally
      accepted accounting principles applied on a consistent basis during the
      periods involved (“GAAP”), except as may be otherwise
      specified in such financial statements or the notes thereto, and fairly
      present in all material respects the financial position of the Company
      and its consolidated Subsidiaries as of and for the dates thereof and
      the results of operations and cash flows for the periods then ended,
      subject, in the case of unaudited statements, to normal, year-end audit
      adjustments.  Except as disclosed in the SEC Reports, since the date of
      the latest audited financial statements included within the SEC Reports,
      (i) there has been no event, occurrence or development that,
      individually or in the aggregate, has had or that could result in a
      Material Adverse Effect, (ii) the Company has not altered its method of
      accounting or the identity of its auditors, (iii) the Company has not
      declared or made any dividend or distribution of cash or other property
      to its stockholders, in their capacities as such, or purchased, redeemed
      or made any agreements to purchase or redeem any shares of its capital
      stock (except for repurchases by the Company of shares of capital stock
      held by employees, officers, directors, or consultants pursuant to an
      option of the Company to repurchase such shares upon the termination of
      employment or services), and (iv) the Company has not issued any equity
      securities to any officer, director or Affiliate, except pursuant to
      existing Company stock-based plans.
    

    
             (h)  Absence of
      Litigation.  Except as disclosed in the Company’s SEC Reports, there
      is no action, suit, claim, or proceeding, or, to the Company’s
      knowledge, inquiry or investigation, before or by any court, public
      board, government agency, self-regulatory organization or body pending
      or, to the knowledge of the Company, threatened against or affecting the
      Company or any of its Subsidiaries that could, individually or in the
      aggregate, have a Material Adverse Effect.
    

    
      
        

        

      

      
        
          - 6 -
        

        
          

        

      

      
        

        

      

    

    
             (i)  Compliance.  Except
      as disclosed in the Company’s SEC Reports, neither the Company nor any
      Subsidiary, except in each case as could not, individually or in the
      aggregate, reasonably be expected to have or result in a Material
      Adverse Effect, (i) is in default under or in violation of (and no event
      has occurred that has not or will not have been waived prior to Closing
      that, with notice or lapse of time or both, would result in a default by
      the Company or any Subsidiary under), nor has the Company or any
      Subsidiary received written notice of a claim that it is in default
      under or that it is in violation of, any indenture, loan or credit
      agreement or any other agreement or instrument to which it is a party or
      by which it or any of its properties is bound, which default has not
      been waived in writing, (ii) is in violation of any order of any court,
      arbitrator or governmental body, or (iii) is or has been in violation of
      any law, statute, rule or regulation of any governmental or regulatory
      authority.
    

    
             (j)  No General
      Solicitation.  Neither the Company, nor, to the Company’s knowledge,
      any of its affiliates, nor any Person acting on its or, to the Company’s
      knowledge, on their behalf, has engaged in any form of general
      solicitation or general advertising (within the meaning of Regulation D)
      in connection with the offer or sale of the Common Shares and the
      Warrant.  
    

    
             (k)  Private
      Placement.  Assuming the accuracy of the Investor’s representations
      and warranties set forth in this Agreement, neither the Company, nor any
      of its Affiliates, nor any person acting on its or their behalf has,
      directly or indirectly, made any offers or sales of any security or
      solicited any offers to buy any security, under circumstances that would
      cause this offering of the Common Shares and Warrant to be integrated
      with prior offerings by the Company for purposes of (i) the Securities
      Act which would require the registration of any such securities under
      the Securities Act, or (ii) any applicable shareholder approval
      provisions of any Trading Market on which any of the securities of the
      Company are listed or designated.
    

    
             (l)  Form S-3
      Eligibility.  The Company is eligible to register the Common Shares
      for resale by Investor using Form S-3 promulgated under the Securities
      Act.
    

    
             (m)  Registration
      Rights.  Except as disclosed in or contemplated by the SEC Reports,
      the Company has not granted or agreed to grant to any Person any rights
      (including “piggy-back” registration rights) to have any securities of
      the Company registered with the Commission or any other governmental
      authority that have not been satisfied or waived.
    

    
             (n)  Application
      of Takeover Protections.  There is no control share acquisition,
      business combination, poison pill (including any distribution under a
      rights agreement) or other similar anti-takeover provision under the
      Company’s charter documents or the laws of its state of incorporation
      that is or could become applicable to Investor as a result of Investor
      and the Company fulfilling their obligations or exercising their rights
      under the Transaction Documents, including, without limitation, as a
      result of the Company’s issuance of the Common Shares, Warrant and
      Warrant Shares and Investor’s ownership of the Common Shares, Warrant
      and Warrant Shares.
    

    
             (o)  Disclosure.  The
      Company understands and confirms that Investor will rely on the
      representations of the Company in the Transaction Documents, the SEC
      Reports and other information, if any, produced by Investor’s
      investigation of the Company in effecting transactions in securities of
      the Company.  All disclosure provided by the Company to Investor in the
      Transaction Documents regarding the Company, its Subsidiaries, the
      business of the Company and its Subsidiaries, and the transactions
      contemplated by the Transaction Documents, and any and all other
      information or documents furnished by or on the behalf of the Company to
      Investor, as of the date of this Agreement and as of the Closing Date,
      and the SEC Reports as a whole as of the time filed with the SEC, and
      any amendments or supplements thereto, as of their date and as of the
      Closing Date, are true and correct in all material respects and did not
      and will not contain any untrue statement of a material fact or omit to
      state a material fact required to be stated therein or necessary in
      order to make the statements made therein, taken as a whole, in light of
      the circumstances under which they were made, not misleading.  To the
      Knowledge of the Company, no event or circumstance has occurred or
      information exists with respect to the Company or any of its
      Subsidiaries or its or their business, properties, operations or
      financial conditions, which, under applicable law, rule or regulation,
      requires public disclosure or announcement by the Company but which has
      not been so publicly announced or disclosed. The Company acknowledges
      and agrees that Investor has not made any representations or warranties
      with respect to the transactions contemplated hereby other than those
      specifically set forth in the Transaction Documents.
    

    
      
        

        

      

      
        
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             (p)  Patents and
      Trademarks.  The Company and the Subsidiaries have, or have rights
      to use, all patents, patent applications, trademarks, trademark
      applications, service marks, trade names, copyrights, licenses and other
      similar rights that are necessary or material for use in connection with
      their respective businesses as described in the SEC Reports and which
      the failure to so have does not have a Material Adverse Effect
      (collectively, the “Intellectual Property Rights”).  Neither
      the Company nor any Subsidiary has received a written notice that any of
      such Intellectual Property Rights used by the Company or any Subsidiary
      violates or infringes upon the rights of any Person.  All such
      Intellectual Property Rights are enforceable and, to the Company’s
      knowledge, there is no existing infringement by another Person of any of
      the Intellectual Property Rights.
    

    
             (q)  Insurance.  The
      Company and the Subsidiaries are insured against such losses and risks
      and in such amounts as are prudent and customary in the businesses and
      location in which the Company and the Subsidiaries are engaged.  To the
      Company’s knowledge, neither the Company nor any Subsidiary has been
      notified that it will not be able to renew its existing insurance
      coverage as and when such coverage expires or to obtain similar coverage
      from similar insurers as may be necessary to continue its business
      without a significant increase in cost.
    

    
             (r)  Sarbanes-Oxley
      Act.  To the Company’s knowledge, the Company is in material
      compliance with all provisions of the Sarbanes-Oxley Act of 2002 which
      are applicable to it as of the Closing Date.
    

    
             (s)  Title to
      Assets.  The Company and the Subsidiaries have good and marketable
      title in fee simple to all real property owned by them that is material
      to the business of the Company and the Subsidiaries and good and
      marketable title in all personal property owned by them that is material
      to the business of the Company and the Subsidiaries, in each case free
      and clear of all Liens, except for Liens that do not, individually or in
      the aggregate, have or result in a Material Adverse Effect.  Any real
      property and facilities held under lease by the Company and the
      Subsidiaries are held by them under valid, subsisting and enforceable
      leases of which the Company and the Subsidiaries are in material
      compliance.
    

    
             (t)  Certain Fees.  No
      brokerage or finder’s fees or commissions are or will be payable by the
      Company to any broker, financial advisor or consultant, finder,
      placement agent, investment banker, bank or other Person with respect to
      the transactions contemplated by the Transaction Documents.  The
      Investor shall have no obligation with respect to any fees or with
      respect to any claims made by or on behalf of other Persons for fees of
      a type contemplated in this Section that may be due in connection with
      the transactions contemplated by the Transaction Documents.
    

    
             (u)  Listing and
      Maintenance Requirements. The Company has not, in the twelve (12)
      months preceding the date hereof, received written notice from any
      Trading Market on which the Common Stock is or has been listed or quoted
      during such twelve (12) month period to the effect that the Company is
      not in compliance with the listing or maintenance requirements of such
      Trading Market.
    

    
             (v)  Acknowledgment
      Regarding Investor’s Purchase of Common Shares.  Based upon
      the assumption that the transactions contemplated by this Agreement are
      consummated in all material respects in conformity with the Transaction
      Documents, the Company acknowledges and agrees that Investor is acting
      solely in the capacity of an arm’s length purchaser with respect to the
      Transaction Documents and the transactions contemplated hereby and
      thereby.  The Company further acknowledges that Investor is not acting
      as a financial advisor or fiduciary of the Company (or in any similar
      capacity) with respect to this Agreement and the transactions
      contemplated hereby and any advice given by Investor or any of its
      representatives or agents in connection with the Transaction Documents
      and the transactions contemplated hereby and thereby is merely
      incidental to Investor’s purchase of the Common Shares and
      Warrants.  The Company further represents to Investor that the Company’s
      decision to enter into this Agreement has been based solely on the
      independent evaluation of the transactions contemplated hereby by the
      Company and its representatives.
    

    
             (w)  Regulatory
      Permits.  The Company and the Subsidiaries possess all certificates,
      authorizations and permits issued by the appropriate federal, state,
      local or foreign regulatory authorities necessary to conduct their
      respective businesses as described in the SEC Reports, except where the
      failure to possess such permits does not, individually or in the
      aggregate, have or result in a Material Adverse Effect (“Material
      Permits”), and neither the Company nor any Subsidiary has received
      any written notice of proceedings relating to the revocation or
      modification of any Material Permit.
    

    
      
        

        

      

      
        
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             (x)  Broker; Agent.  The
      Company shall pay for, and indemnify and hold harmless Investor from and
      against, all fees, commissions or other payments owing to any broker,
      finder or intermediary acting on behalf of the Company, directly or
      indirectly, as a broker, finder or intermediary in connection with the
      transactions contemplated by this Agreement.
    

    
             (y)  Tax Status.  Except
      for matters that would not, individually or in the aggregate, have or
      reasonably be expected to result in a Material Adverse Effect, the
      Company and each Subsidiary has filed all necessary federal, state and
      foreign income and franchise tax returns and has paid or accrued all
      taxes shown as due thereon, and the Company has no knowledge of a tax
      deficiency which has been asserted or threatened against the Company or
      any Subsidiary.
    

    
             (z)  Foreign
      Corrupt Practices.  Neither the Company, nor to the knowledge of the
      Company, any agent or other person acting on behalf of the Company, has
      (i) directly or indirectly, used any funds for unlawful contributions,
      gifts, entertainment or other unlawful expenses related to foreign or
      domestic political activity, (ii) made any unlawful payment to foreign
      or domestic government officials or employees or to any foreign or
      domestic political parties or campaigns from corporate funds, (iii)
      failed to disclose fully any contribution made by the Company (or made
      by any person acting on its behalf of which the Company is aware) which
      is in violation of law, or (iv) violated in any material respect any
      provision of the Foreign Corrupt Practices Act of 1977, as amended.
    

    
            (aa)  Accountants.  The
      Company’s current independent registered public accounting firm is Ernst
      & Young LLP. To the Knowledge of the Company, such accounting firm (i)
      is a registered public accounting firm as required by the Exchange Act
      and (ii) shall express its opinion with respect to the financial
      statements to be included in the Company’s Annual Report for the year
      ending December 31, 2009.
    

    
            (bb)  Regulation M
      Compliance.  The Company has not, and to the Knowledge of the
      Company no one acting on its behalf has, (i) taken, directly or
      indirectly, any action designed to cause or to result in the
      stabilization or manipulation of the price of any security of the
      Company to facilitate the sale or resale of any of the Common Shares,
      the Warrant or Warrant Shares, (ii) sold, bid for, purchased, or, paid
      any compensation for soliciting purchases of, any of the Common Shares,
      the Warrant or Warrant Shares, or (iii) paid or agreed to pay to any
      Person any compensation for soliciting another to purchase any other
      securities of the Company.
    

    
            (cc)  Internal
      Accounting Controls.  The Company maintains a system of internal
      control over financial reporting (as such term is defined in the
      Exchange Act) sufficient to provide reasonable assurance that (i)
      transactions are executed in accordance with management’s general or
      specific authorizations, and (ii) transactions are recorded as necessary
      to permit preparation of financial statements in conformity with GAAP
      and to maintain asset accountability.  The Company’s certifying officers
      are responsible for establishing and maintaining disclosure controls and
      procedures (as defined in the Exchange Act) for the Company and they
      have (a) designed such disclosure controls and procedures, or caused
      such disclosure controls and procedures to be designed under their
      supervision, to ensure that material information relating to the Company
      is made known to the certifying officers by others within those
      entities, particularly during the periods since December 31, 2007 in
      which the Company’s filings under the Exchange Act have been prepared;
      (b) evaluated the effectiveness of the Company’s disclosure controls and
      procedures and presented in the Company’s filings under the Exchange Act
      their conclusions about the effectiveness of the disclosure controls and
      procedures, as of the end of the periods covered by such filings since
      December 31, 2007 under the Exchange Act  based on such evaluation; and
      (c) since the last evaluation date referred to in (b) above, there has
      been no change in the Company’s internal control over financial
      reporting that has materially affected, or is reasonably likely to
      materially affect, the Company’s internal control over financial
      reporting (as such term is defined in the Exchange Act) or, to the
      Company’s knowledge, in other factors that could significantly affect
      the Company’s internal control over financial reporting, and no
      significant deficiencies or material weaknesses in internal controls
      over financial reporting have been identified.
    

    
         3.2  Representations and Warranties of
      Investor.  Investor hereby represents and warrants to the Company as
      follows:
    

    
      
        

        

      

      
        
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             (a)  Organization;
      Authority.  Investor is an entity duly organized, validly existing
      and in good standing under the laws of the jurisdiction of its
      organization with the requisite corporate or partnership power and
      authority to enter into and to consummate the transactions contemplated
      by the Transaction Documents and otherwise to carry out its obligations
      hereunder and thereunder.  The execution and delivery of this Agreement
      and the consummation of the transactions contemplated hereby, including
      the purchase by Investor of the Common Shares and Warrant hereunder, has
      been duly authorized by all necessary action on the part of
      Investor.  This Agreement has been duly executed and delivered by
      Investor and constitutes the valid and binding obligation of Investor,
      enforceable against it in accordance with its terms, except as may be
      limited by (i) applicable bankruptcy, insolvency, reorganization or
      other laws of general application relating to or affecting the
      enforcement of creditors rights generally, and (ii) the effect of rules
      of law governing the availability of specific performance, injunctive
      relief and other equitable remedies.
    

    
             (b)  No Public
      Sale or Distribution; Investment Intent.  Investor understands that
      none of the Common Shares nor the Warrant or Warrant Shares have been
      registered under the Securities Act by reason of a claimed exemption
      under the provisions of the Securities Act which depends, in part, on
      Investor’s intent in connection therewith.  Investor represents that it
      is acquiring the Common Shares, Warrant and Warrant Shares in the
      ordinary course of business for its own account and not with a view
      towards, or for resale in connection with, the public sale or
      distribution thereof, except pursuant to sales registered under the
      Securities Act or under an exemption from such registration and in
      compliance with applicable federal and state securities laws, and
      Investor does not have a present arrangement to effect any distribution
      of the Common Shares, Warrant  or Warrant Shares to or through any
      person or entity.
    

    
             (c)  Investor
      Status.  At the time Investor was offered the Common Shares, Warrant
      and Warrant Shares, it was, and at the date hereof it is, an “accredited
      investor” as defined in Rule 501(a) under the Securities Act.
    

    
             (d)  Experience
      of Investor.  Investor, either alone or together with its
      representatives has such knowledge, sophistication and experience in
      business and financial matters so as to be capable of evaluating the
      merits and risks of the prospective investment in the Common Shares,
      Warrant and Warrant Shares, and has so evaluated the merits and risks of
      such investment.  Investor is able to bear the economic risk of an
      investment in the Common Shares, Warrant and Warrant Shares and is able
      to afford a complete loss of such investment.
    

    
             (e)  Access to
      Information.  Investor acknowledges that it has been provided and
      has carefully reviewed the Company’s SEC Reports, including without
      limitation the Company’s Annual Report on Form 10-K for the fiscal year
      ended December 31, 2008, Quarterly Reports on Form 10-Q for the
      quarterly periods ended March 31, June 30 and September 30, 2009, Forms
      8-K filed during 2009 and 2010, including amendments to such filings,
      and the additional risk factors specific to the Common Stock, and all
      other information regarding the Company which Investor has requested or
      desired to know and has been afforded: (i) the opportunity to ask
      such questions as it has deemed necessary of, and to receive answers
      from, representatives of the Company concerning the terms and conditions
      of the offering of the Common Shares, Warrant and the Warrant Shares and
      the merits and risks of investing in the Common Shares, Warrant and the
      Warrant Shares; (ii) access to information (other than material
      non-public information) about the Company and the Subsidiaries and their
      respective financial condition, results of operations, business,
      properties, management and prospects sufficient to enable it to evaluate
      its investment; and (iii) the opportunity to obtain such additional
      information that the Company possesses or can acquire without
      unreasonable effort or expense that is necessary to make an informed
      investment decision with respect to the investment.  Neither such
      inquiries nor any other investigation conducted by or on behalf of
      Investor or its representatives or counsel shall modify, amend or affect
      Investor’s right to rely on the truth and accuracy of the Company’s
      representations and warranties contained in the Transaction
      Documents.  Investor acknowledges and agrees that the Company does not
      make and has not made any representations or warranties with respect to
      the transactions contemplated hereby other than those specifically set
      forth in the Transaction Documents.
    

    
             (f)  No
      Governmental Review.  Investor understands that no United States
      federal or state agency or any other government or governmental agency
      has passed on or made any recommendation or endorsement of the Common
      Shares, Warrant or the Warrant Shares or the fairness or suitability of
      the investment in the Common Shares, Warrant or the Warrant Shares, nor
      have such authorities passed upon or endorsed the merits of the offering
      of the Common Shares, Warrant and the Warrant Shares.
    

    
      
        

        

      

      
        
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             (g)  No Conflicts.  The
      execution, delivery and performance by Investor of this Agreement and
      the consummation by Investor of the transactions contemplated hereby and
      thereby do not, and will not, (i) result in a violation of the
      certificate or articles of incorporation, Bylaws or other organizational
      or charter documents of Investor or (ii) conflict with, or constitute a
      default (or an event which with notice or lapse of time or both would
      become a default) under, or give to others any rights of termination,
      amendment, acceleration or cancellation of (with or without notice,
      lapse of time or both), any agreement, indenture or instrument to which
      Investor is a party, or (iii) result in a violation of any law, rule,
      regulation, order, judgment or decree or other restriction of any court
      or government authority (including federal and state securities laws)
      applicable to Investor, except in the case of clauses (ii) and (iii)
      above, for such that are not material and do not otherwise affect the
      ability of Investor to consummate the transactions contemplated hereby.
    

    
             (h)  Illegal
      Transactions.  Neither Investor nor any person acting on its behalf
      or at its direction has engaged in any purchase or sale of Common Stock
      (including without limitation any short sale), pledge, transfer,
      establish an open “put equivalent position” within the meaning of Rule
      16a-1(h) under the Exchange Act) during the five (5) Trading Days
      immediately preceding the date of this Agreement.  
    

    
             (i)  No Legal,
      Tax or Investment Advice.  Investor understands that nothing in this
      Agreement or any other materials presented by or on behalf of the
      Company to Investor in connection with the purchase of the Common
      Shares, Warrant and Warrant Shares constitutes legal, tax or investment
      advice.  Investor has consulted such legal, tax and investment advisors
      as it, in its sole discretion, has deemed necessary or appropriate in
      connection with its purchase of the Common Shares, Warrant and Warrant
      Shares.  Investor further acknowledges that Company Counsel has acted
      solely as legal counsel to the Company in connection with the
      transactions contemplated by this Agreement and that Company Counsel has
      not acted as counsel for Investor in connection therewith.
    

    
             (j)  Private
      Placement.  Investor represents that no Common Shares, Warrant or
      Warrant Shares were offered or sold to it by means of any form of
      general solicitation or general advertising, and in connection therewith
      Investor did not (A) receive or review any advertisement, article,
      notice or other communication published in a newspaper or magazine or
      similar media or broadcast over television or radio, whether closed
      circuit or generally available; or (B) attend any seminar, meeting or
      industry investor conference whose attendees were invited by any general
      solicitation or general advertising.
    

    
             (k)  No Broker;
      Agent.  Investor represents and warrants that Investor is not (a) a
      broker or dealer admitted to membership in the Financial Industry
      Regulatory Authority (“FINRA”), (b) a controlling
      stockholder of a FINRA member, or (c) a person associated with a member
      of FINRA.  Investor represents and warrants that it has not engaged,
      consented to nor authorized any broker, finder or intermediary to act on
      its behalf, directly or indirectly, as a broker, finder or intermediary
      in connection with the transactions contemplated by this
      Agreement.  Investor shall indemnify and hold harmless the Company from
      and against all fees, commissions or other payments owing to any such
      person or firm acting on behalf of Investor hereunder.
    

    
             (l)  No Right to
      Nominate Director.  By signing this Agreement, Investor hereby
      relinquishes any and all right that it and any of its affiliates have to
      appoint a nominee for election to the Company’s board of directors
      pursuant to Section 4.11 of the Securities Purchase Agreement dated
      September 13, 2006 by and between the Company and Investor.  Investor
      hereby represents and warrants that, except as referenced in the
      previous sentence, neither Investor nor any of its affiliates has any
      other right to appoint a nominee for election to the Company’s board of
      directors, and Investor’s only right with respect to the board of
      directors of the Company is the observation right conferred to Investor
      under Section 4.11 hereof.  
    

    
      ARTICLE IV  
OTHER AGREEMENTS OF THE PARTIES
    

    
         4.1  Transfer Restrictions.  
    

    
             (a)  Investor covenants that the Restricted Securities will only
      be disposed of pursuant to an effective registration statement under,
      and in compliance with the requirements of, the Securities Act or
      pursuant to an available exemption from the registration requirements of
      the Securities Act, and in compliance with any applicable state
      securities laws.  In connection with any transfer of Restricted
      Securities other than pursuant to an effective registration statement or
      to the Company, or pursuant to Rule 144(b)(1) except as otherwise set
      forth herein, the Company requires the transferor to provide to the
      Company an opinion of counsel selected by the transferor, the form and
      substance of which opinion shall be reasonably satisfactory to the
      Company, to the effect that such transfer does not require registration
      under the Securities Act.
    

    
      
        

        

      

      
        
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             (b)  Investor agrees that each certificate representing
      Restricted Securities shall bear a legend substantially in the following
      form (the “Legend”) for only so long as is required by this Section
      4.1(b):
    

    
      THESE SECURITIES HAVE NOT BEEN REGISTERED WITH THE SECURITIES AND
      EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN
      RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF
      1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE
      OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT
      UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR
      IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE
      SECURITIES ACT AND IN COMPLIANCE WITH APPLICABLE STATE SECURITIES LAWS
      OR BLUE SKY LAWS.
    

    
      Certificates representing Restricted Securities shall no longer be
      required to bear the Legend or any other legend (i) after a transfer
      pursuant to a registration statement that is effective under the
      Securities Act covering the resale of such Restricted Securities,
      (ii) following any sale of such Restricted Securities pursuant to Rule
      144, (iii) if such Restricted Securities are eligible for sale under
      Rule 144(b)(1), (iv) if such legend is not required under applicable
      requirements of the Securities Act (including controlling judicial
      interpretations and pronouncements issued by the Staff of the
      Commission) in an opinion of (x) Company Counsel, or (y) counsel to
      Investor, the form and substance of which opinion shall be reasonably
      satisfactory to the Company, or (v) as otherwise set forth in Section
      4.1(c) below.
    

    
             (c)  On the basis of, and subject to, compliance by Investor with
      the covenants set forth in Section 4.1(a) above and elsewhere in this
      Agreement, following 180 days after (i) with respect to the Common
      Shares, the date hereof, and (ii) with respect to the Warrant, the date
      the Warrant is exercised and Warrantholder pays in full to the Company
      the exercise price (the “Restriction Period”), the Company
      shall as soon as practicable (but not later than five (5) Business Days)
      after surrender of legended certificates by Investor to the Company and
      notice of such surrender has been provided by Investor pursuant to
      Section 7.3 below cause certificates evidencing Restricted Securities to
      be replaced with certificates which do not bear the Legend or any other
      restrictive legend, and all certificates representing Common Shares,
      Warrants and Warrant Shares issued subsequent to the lapse of the
      Restriction Period pursuant to the Transaction Documents shall not bear
      the Legend or any other restrictive legend. The Company shall use
      commercially reasonable efforts to work with the transfer agent to
      provide Investor certificates for blocks of 100,000 shares, and to
      provide Investor electronic credit of the securities after removal of
      the legend.  Investor acknowledges that the removal of the Legend from
      Restricted Securities is predicated upon the Company’s reliance on
      Investor’s compliance with its covenants in Section 4.1(a) above and
      elsewhere in this Agreement.  The Company may not make any notation on
      its records or give instructions to the Transfer Agent that enlarge the
      restrictions on transfer set forth in this Section 4.1, provided,
      however, if the Investor exercises its observer right under Section
      4.11, but solely during the time period when such right is being
      exercised, the Registrable Securities may be sold only during the
      Company’s “open trading window,” as that term is defined under the
      Company’s Insider Trading Policy, and subject, further, to any stop
      orders provided by the Company.
    

    
         4.2  Furnishing of Information.
    

    
             (a)  As long as Investor owns Common Shares or the Warrant or
      Warrant Shares, the Company covenants to maintain the registration of
      the Common Stock under Section 12(b) or 12(g) of the Exchange Act and
      timely file (or obtain extensions in respect thereof and file within the
      applicable grace period) all reports required to be filed by the Company
      after the date hereof pursuant to the Exchange Act.  As long as the
      Investor owns Common Shares or the Warrant or Warrant Shares, if the
      Company is not required to file reports pursuant to the Exchange Act, it
      will prepare and furnish to the Investor and make publicly available in
      accordance with Rule 144 such information as is required for the
      Investor to sell the Common Shares, Warrant or Warrant Shares under Rule
      144. The Company further covenants that it will take such further action
      as any holder of Common Shares, Warrant or Warrant Shares may reasonably
      request, to the extent required from time to time to enable such Person
      to sell such Common Shares, Warrant or Warrant Shares without
      registration under the Securities Act within the requirements of the
      exemption provided by Rule 144.
    

    
      
        

        

      

      
        
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             (b)  At any time during the period commencing from the lapse of
      the Restriction Period and ending at such time that all of the Common
      Shares, Warrants and Warrant Shares may be sold without the requirement
      for the Company to be in compliance with Rule 144(c)(1) and otherwise
      without restriction or limitation pursuant to Rule 144, if the Company
      shall fail for any reason to satisfy the current public information
      requirement under Rule 144(c) (a “Public Information Failure”)
      (other than any reason resulting from the actions or inactions of the
      Investor) then, the Company shall pay to Investor, in cash, as
      liquidated damages and not as a penalty, by reason of any such delay in
      or reduction of its ability to sell the Common Shares, Warrants and
      Warrant Shares, an amount in cash equal to one percent (1.0%) of the
      aggregate Purchase Price of any Restricted Securities then owned on the
      day of a Public Information Failure and that on every thirtieth (30th)
      day (pro rated for periods totaling less than thirty (30) days)
      thereafter until the earlier of (a) the date such Public Information
      Failure is cured and (b) such time that such public information is no
      longer required for Investor to transfer the Common Shares, Warrants and
      Warrant Shares pursuant to Rule 144.  The payments to which Investor
      shall be entitled pursuant to this Section 4.2(b) are referred to herein
      as “Public Information Failure Payments.”  Public
      Information Failure Payments shall be paid on the earlier of (i) the
      last day of the calendar month during which such Public Information
      Failure Payments are incurred and (ii) the third (3rd) Business Day
      after the event or failure giving rise to the Public Information Failure
      Payments is cured.  In the event the Company fails to make Public
      Information Failure Payments in a timely manner, such Public Information
      Failure Payments shall bear interest at the rate of 1.0% per month
      (prorated for partial months) until paid in full. All pro rated
      calculations made pursuant to this paragraph shall be based upon the
      actual number of days in such pro rated month. In no event shall the
      Company be obligated to pay aggregate Public Information Failure
      Payments in an amount greater than the dollar amount equal to 6% of the
      total Purchase Price.  For the avoidance of doubt, the parties hereto
      agree that the Public Information Failure Payments set forth in this
      Section 4.2(b) relate solely to the Common Shares, Warrants and Warrant
      Shares to be issued under this agreement.  As liquidated damages, the
      remedies provided in this Section 4.2(b) shall be the exclusive remedy
      available under this Agreement for the Public Information Failure, and
      Investor shall have no right to pursue any other remedies at law or in
      equity. Notwithstanding the foregoing, the Company and the Investor
      hereby acknowledge that (i) the Investor’s right to receive Public
      Information Failure Payments in cash is subordinate to the Company’s
      obligations under the Senior Credit Agreement as in effect on the date
      hereof; (ii) the Company cannot make any Public Information Failure
      Payments in cash to the Investor pursuant to this Section without (x)
      the prior written consent of the lenders under the Senior Credit
      Agreement or (y) unless the Company’s obligations under the Senior
      Credit Agreement are satisfied; and (iii) the foregoing does not in any
      way limit or restrict Investor's right that the Registration Statement
      be filed in accordance with Section 6.1.
    

    
         4.3  Integration.  The Company shall
      not, and shall use its commercially reasonably efforts to ensure that no
      Affiliate thereof shall, sell, offer for sale or solicit offers to buy
      or otherwise negotiate in respect of any security (as defined in Section
      2 of the Securities Act) that would be integrated with the offer or sale
      of the Common Shares or Warrant in a manner that would require the
      registration under the Securities Act of the sale of the Common Shares
      or Warrant to Investor or that would be integrated with the offer or
      sale of the Common Shares or Warrant for purposes of the rules and
      regulations of any Trading Market.
    

    
         4.4  Reservation of Common Shares.  The
      Company shall maintain a reserve from its duly authorized shares of
      Common Stock for issuance pursuant to the Transaction Documents, in such
      amount as may be required to fulfill its obligations in full under the
      Transaction Documents.  In the event that at any time the then
      authorized shares of Common Stock are insufficient for the Company to
      satisfy its obligations in full under the Transaction Documents, the
      Company shall promptly take such actions as may be required to increase
      the number of authorized shares.
    

    
         4.5  Securities Laws Disclosure; Publicity.  On
      the Closing Date, or earlier if required to comply with applicable
      securities laws, including the requirements of Form 8-K, the Company
      shall file a Current Report on Form 8-K with the Commission (the “8-K
      Filing”) describing the terms of the transactions contemplated by
      the Transaction Documents and including as exhibits to such Current
      Report on Form 8-K this Agreement.  The Company and Investor shall
      consult with each other in issuing any press releases or otherwise
      making public statements or filings and other communications with the
      Commission or any regulatory agency with respect to the transactions
      contemplated hereby.  Notwithstanding any other provision of this
      Agreement, the Company may make any securities filings regarding the
      transactions contemplated hereby, including the name of Investor, to the
      extent the Company reasonably believes the same to be prudent in
      connection with its disclosure obligations, its past practices and as
      otherwise required by law or any securities exchange upon which the
      Company’s securities may be listed.
    

    
      
        

        

      

      
        
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         4.6  Use of Proceeds.  The Company
      intends to use the net proceeds from the sale of the Common Shares for
      general corporate purposes, including capital improvements.  
    

    
         4.7  Certain Existing Rights.  Investor
      hereby acknowledges that the Company has previously granted certain
      rights to the Holders of Existing Rights, including, among other rights,
      registration rights, preemptive rights, anti-dilution rights, rights to
      acquire Common Stock and rights to receive dividends (in cash or Common
      Stock), as disclosed in the SEC Reports.  Investor hereby agrees that,
      notwithstanding any other representations, warranties, covenants or
      agreements set forth in the Transaction Documents, none of the existing
      rights of any of the Holders of Existing Rights shall breach, negate or
      conflict with any of the representations, warranties, covenants or
      agreements set forth in the Transaction Documents.  Investor further
      agrees that the Company, in its sole discretion, has the right to
      renegotiate, settle, payoff or retire any of the existing rights or
      obligations to the Holders of Existing Rights and that such actions
      shall not breach, negate or conflict with any of the representations,
      warranties, covenants or agreements set forth in the Transaction
      Documents.
    

    
         4.8  Market Stand-Off.  Investor
      agrees that until the 8-K Filing is filed, or should have been filed,
      with the Commission in accordance with Section 4.5, Investor shall not,
      directly or indirectly, through related parties or otherwise, sell or
      purchase or otherwise deal in or with any equity security of the
      Company.  Notwithstanding the forgoing, Investor further agrees
      that  during the Restriction Period Investor shall not sell or otherwise
      dispose or deal in the Common Shares, Warrant and Warrant Shares.
    

    
         4.9  Prohibited Transactions.  Investor
      will not use any of the Common Shares or Warrant Shares acquired
      pursuant to this Agreement to cover any short position in the Common
      Stock of the Company if doing so would be in violation of applicable
      Securities Laws.  Investor will comply with all applicable Securities
      Laws in the holding and sale of the Common Shares, Warrant or Warrant
      Shares.
    

    
        4.10  Form D; Blue Sky Filings.  The
      Company agrees to timely file a Form D with respect to the Common Shares
      and Warrant as required under Regulation D and to provide a copy
      thereof, promptly upon request of the Investor. The Company shall take
      such action as the Company shall reasonably determine is necessary in
      order to obtain an exemption for, or to qualify the Common Shares and
      Warrant for, sale to the Investor at the Closing under applicable
      securities or “Blue Sky” laws of the states of the United States, and
      shall provide evidence of such actions promptly upon request of the
      Investor.
    

    
        4.11  Observer Right.  As long as Investor
      owns (i) not less than one million (1,000,000) Common Shares, (ii) the
      Warrant and the Warrant is exercisable for not less than one million
      (1,000,000) Warrant Shares, or (iii) not less than one million
      (1,000,000) Warrant Shares, Investor shall have the right, exercisable
      in its sole discretion and in accordance with the terms hereof by
      providing written notice to the Company of Investor’s exercise of such
      right at any time and from time to time, to attend all meetings of the
      Company’s Board of Directors and all committees thereof in a nonvoting
      observer capacity and, if such right is exercised, the Company shall
      give such representative copies of all notices, minutes, consents, and
      other materials that it provides to its directors; provided, however,
      that the representative chosen by the Investor will require the
      Company’s consent, such consent not to be unreasonably withheld, provided
      further, that prior to attending any Board meetings or receiving
      any Board materials, such representative shall enter into a
      non-disclosure agreement with the Company in substantially the form
      attached hereto as Exhibit D agreeing to hold in confidence and
      trust and to act in a fiduciary manner with respect to all information
      so provided; and provided further, that the Company
      reserves the right to withhold any information and to exclude such
      representative from any meeting or portion thereof if access to such
      information or attendance at such meeting could adversely affect the
      attorney-client privilege between the Company and its counsel or result
      in disclosure of trade secrets or a conflict of interest, if Investor or
      its representative is a competitor of the Company or for other similar
      reasons. Investor’s representative may participate in discussions of
      matters brought to the Board of Directors and all committees thereof.
    

    
      
        

        

      

      
        
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      ARTICLE V  
CONDITIONS
    

    
         5.1  Conditions Precedent to the
      Obligations of Investor.  The obligation of Investor to acquire
      Common Shares and Warrant at the Closing is subject to the satisfaction
      or waiver by Investor, at or before the Closing, of each of the
      following conditions:
    

    
             (a)  Representations
      and Warranties.  The representations and warranties of the Company
      contained herein shall be true and correct in all material respects as
      of the date when made and as of the Closing as though made on and as of
      such date; and
    

    
             (b)  Performance.  The
      Company shall have performed, satisfied and complied in all material
      respects with all covenants, agreements and conditions required by the
      Transaction Documents to be performed, satisfied or complied with by it
      at or prior to the Closing, including delivery of the items set forth in
      Section 2.3(a).
    

    
             (c)  Kapoor Trust
      Waiver.  The Company shall have received a waiver, the form and
      substance of which shall be reasonably satisfactory to Investor, from
      the Kapoor Trust to this Agreement and the transactions contemplated
      hereby.
    

    
             (d)  No Material
      Adverse Effect.  There shall have been no Material Adverse Effect
      since the date hereof.
    

    
             (e)  Trading.  From
      the date hereof to the Closing Date, trading in the Common Stock shall
      not have been suspended by the Commission or the primary Trading Market
      on which the Common Stock is listed or quoted (except for any suspension
      of trading of limited duration agreed to by the Company, which
      suspension shall be terminated prior to the Closing), and, at any time
      prior to the Closing Date, trading in securities generally as reported
      by Bloomberg L.P. shall not have been suspended or materially limited,
      nor shall a general banking moratorium have been declared either by the
      United States or New York State authorities nor shall there have
      occurred any material outbreak or escalation of hostilities or other
      national or international calamity of such magnitude in its effect on,
      or any material adverse change in, any financial market which, in each
      case, in the reasonable judgment of Investor, makes it impracticable or
      inadvisable to purchase the Common Shares and Warrant at the Closing.
    

    
         5.2  Conditions Precedent to the
      Obligations of the Company.  The obligation of the Company to sell
      the Common Shares and Warrant at the Closing is subject to the
      satisfaction or waiver by the Company, at or before the Closing, of each
      of the following conditions:
    

    
             (a)  Representations
      and Warranties.  The representations and warranties of Investor
      contained herein shall be true and correct in all material respects as
      of the date when made and as of the Closing as though made on and as of
      such date; and
    

    
             (b)  Performance.  Investor
      shall have performed, satisfied and complied in all material respects
      with all covenants, agreements and conditions required by the
      Transaction Documents to be performed, satisfied or complied with by
      Investor at or prior to the Closing, including delivery of the items set
      forth in Section 2.3(b).
    

    
             (c)  Kapoor Trust
      Waiver.  The Company shall have received a waiver, the form and
      substance of which shall be reasonably satisfactory to Investor, from
      the Kapoor Trust to this Agreement and the transactions contemplated
      hereby.
    

    
      
        

        

      

      
        
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      ARTICLE VI  
DELIVERY OF FREELY TRADABLE SECURITIES
    

    
         6.1  Delivery of Freely Tradable
      Securities.
    

    
             (a)  In the event the Company is unable to deliver a certificate
      or certificates for the Common Shares or Warrant Shares free and clear
      of all restrictive legends within five (5) Business Days following the
      last day of the applicable Restriction Period, then the Company shall,
      upon the request of the Investor, prepare and file with the Commission a
      “Shelf” Registration Statement (the “Registration
      Statement”) covering the resale of all Common Shares for an offering
      to be made on a continuous basis pursuant to Rule 415.  The Registration
      Statement shall be on Form S-3 (except if the Company is not then
      eligible to register for resale the Common Shares and Warrant Shares on
      Form S-3, in which case such registration shall be on another
      appropriate form in accordance with the Securities Act and the Exchange
      Act and as consented to by Investor).
    

    
             (b)  The Company shall use its commercially reasonable best
      efforts to cause the Registration Statement to be filed with the
      Commission as promptly as possible, but in no case more than ten (10)
      days following the last day of the Restriction Period. The Company shall
      use its commercially reasonable best efforts to cause the Registration
      Statement to be declared effective by the Commission as promptly as
      possible, but in no case more than sixty (60) days following the filing
      of the Registration Statement. The Company shall use its commercially
      reasonable best efforts to keep the Registration Statement continuously
      effective under the Securities Act until the earlier of the date that
      all Common Shares and Warrant Shares covered by such Registration
      Statement have been sold or can be sold publicly under Rule 144(b)(1)
      (the “Effectiveness Period”). The Company shall have no
      liability hereunder for a failure to meet the deadlines set forth herein
      if such failure is caused by a delay resulting from the actions or
      inactions of the Investor.
    

    
             (c)  The Company shall notify Investor in writing promptly (and
      in any event within two (2) Trading Days) after receiving notification
      from the Commission that the Registration Statement has been declared
      effective.
    

    
             (d)  Notwithstanding anything else herein, the Company shall have
      no liability hereunder for a failure to meet the deadlines if the
      Company is involved in (i) a “Rule 13e-3 transaction” as defined in Rule
      13e-3 under the Exchange Act, or (ii) a merger or consolidation of the
      Company or a sale of more than one-half of the assets of the Company in
      one or a series of related transactions, unless following such
      transaction or series of transactions, the holders of the Company’s
      securities prior to the first such transaction continue to hold at least
      50% of the voting rights and equity interests of the surviving entity or
      acquirer.
    

    
             (e)  Notwithstanding anything in this Agreement to the contrary,
      after 60 consecutive Trading Days of continuous effectiveness of the
      initial Registration Statement filed and declared effective pursuant to
      this Agreement, the Company may, by written notice to Investor and
      without liability hereunder, suspend sales under a Registration
      Statement after the Effective Date thereof and/or require that Investor
      immediately cease the sale of shares of Common Stock pursuant thereto
      and/or defer the filing of any subsequent Registration Statement if the
      Company is engaged in a material merger, acquisition or sale and the
      Board of Directors determines in good faith, by appropriate resolutions,
      that, as a result of such activity, (A) it would be materially
      detrimental to the Company (other than as relating solely to the price
      of the Common Stock) to maintain a Registration Statement at such time
      and (B) it is in the best interests of the Company to defer proceeding
      with such registration at such time.  Upon receipt of such notice,
      Investor shall immediately discontinue any sales of Registrable
      Securities pursuant to such registration until Investor has received
      copies of a supplemented or amended Prospectus or until Investor is
      advised in writing by the Company that the then-current Prospectus may
      be used and has received copies of any additional or supplemental
      filings that are incorporated or deemed incorporated by reference in
      such Prospectus.  In no event, however, shall this right be exercised to
      suspend sales beyond the period during which (in the good faith
      determination of the Company’s Board of Directors) the failure to
      require such suspension would be materially detrimental to the
      Company.  The Company’s rights under this Section 6.1(e) may be
      exercised for a period of no more than 20 days at a time and not more
      than three times in any 12-month period without penalty or damages for
      such suspension.  Immediately after the end of any suspension period
      under this Section 6.1(e), the Company shall take all necessary actions
      (including filing any required supplemental prospectus) to restore the
      effectiveness of the applicable Registration Statement and the ability
      of Investor to publicly resell their Registrable Securities pursuant to
      such effective Registration Statement.
    

    
      
        

        

      

      
        
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         6.2  Registration Procedures.  In
      connection with the Company’s registration obligations hereunder, the
      Company shall:
    

    
             (a)  Not less than three Trading Days prior to the filing of a
      Registration Statement or any related Prospectus or any amendment or
      supplement thereto (including any document that would be incorporated or
      deemed to be incorporated therein by reference), furnish to Investor
      copies of all such documents proposed to be filed, which documents
      (other than those incorporated or deemed to be incorporated by
      reference) will be subject to the review of Investor. The Company shall
      reflect in each such document when so filed with the Commission such
      comments as Investor may reasonably propose. Notwithstanding any other
      provision of this Agreement, the Company will have no obligation to
      deliver or make available to Investor any Registration Statement or
      Prospectus containing any material, nonpublic information unless
      Investor specifically consents in advance to receive such material,
      nonpublic information in writing and Investor has executed an agreement
      to keep such material, nonpublic information confidential and refrain
      from trading in any Company security for so long as such information
      remains material, nonpublic information.
    

    
             (b)  (i) Prepare and file with the Commission such amendments,
      including post-effective amendments, to the Registration Statement and
      the Prospectus used in connection therewith as may be necessary to keep
      the Registration Statement continuously effective, as to the applicable
      Registrable Securities for the Effectiveness Period and prepare and file
      with the Commission such additional Registration Statements in order to
      register for resale under the Securities Act all of the Registrable
      Securities; (ii) cause the related Prospectus to be amended or
      supplemented by any required Prospectus supplement, and as so
      supplemented or amended to be filed pursuant to Rule 424; (iii) respond
      as promptly as reasonably possible, and in any event within 10 Trading
      Days (except to the extent that the Company reasonably requires
      additional time to respond to accounting comments), to any comments
      received from the Commission with respect to the Registration Statement
      or any amendment thereto and as promptly as reasonably possible provide
      Investor true and complete copies of all correspondence from and to the
      Commission relating to the Registration Statement; and (iv) comply in
      all material respects with the provisions of the Securities Act and the
      Exchange Act with respect to the disposition of all Registrable
      Securities covered by the Registration Statement during the applicable
      period in accordance with the intended methods of disposition by
      Investor set forth in the Registration Statement as so amended or in
      such Prospectus as so supplemented.
    

    
             (c)  Notify Investor as promptly as reasonably possible, and (if
      requested by Investor confirm such notice in writing no later than two
      Trading Days thereafter, of any of the following events: (i) any
      Registration Statement or any post-effective amendment is declared
      effective; (ii) the Commission or any other Federal or state
      governmental authority requests any amendment or supplement to any
      Registration Statement or Prospectus or requests additional information
      related thereto; (iii) the Commission issues any stop order suspending
      the effectiveness of any Registration Statement or initiates any
      Proceedings for that purpose; (iv) the Company receives notice of any
      suspension of the qualification or exemption from qualification of any
      Registrable Securities for sale in any jurisdiction, or the initiation
      or threat of any Proceeding for such purpose; or (v) the financial
      statements included in any Registration Statement become ineligible for
      inclusion therein or any statement made in any Registration Statement or
      Prospectus or any document incorporated or deemed to be incorporated
      therein by reference is untrue in any material respect or any revision
      to a Registration Statement, Prospectus or other document is required so
      that it will not contain any untrue statement of a material fact or omit
      to state any material fact required to be stated therein or necessary to
      make the statements therein, in the light of the circumstances under
      which they were made, not misleading.
    

    
             (d)  Use its commercially reasonable best efforts to avoid the
      issuance of or, if issued, obtain the withdrawal of (i) any order
      suspending the effectiveness of any Registration Statement, or (ii) any
      suspension of the qualification (or exemption from qualification) of any
      of the Registrable Securities for sale in any jurisdiction, as soon as
      possible.
    

    
             (e)  If requested by Investor, provide Investor, without charge,
      at least one conformed copy of each Registration Statement and each
      amendment thereto, including financial statements and schedules, and all
      exhibits to the extent requested by such Person (including those
      previously furnished or incorporated by reference) promptly after the
      filing of such documents with the Commission.
    

    
      
        

        

      

      
        
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             (f)  Promptly deliver to Investor, without charge, a reasonable
      number of copies of the Prospectus or Prospectuses (including each form
      of prospectus) and each amendment or supplement thereto as Investor may
      reasonably request. The Company hereby consents to the use of such
      Prospectus and each amendment or supplement thereto by Investor in
      connection with the offering and sale of the Registrable Securities
      covered by such Prospectus and any amendment or supplement thereto to
      the extent permitted by federal and state securities laws and
      regulations.
    

    
             (g)  (i) In the time and manner required by each Trading Market,
      prepare and file with such Trading Market an additional shares listing
      application covering all of the Registrable Securities; (ii) take all
      steps necessary to cause such Registrable Securities to be approved for
      listing on each Trading Market as soon as possible thereafter; (iii)
      provide to Investor evidence of such listing; and (iv) during the
      Effectiveness Period, maintain the listing of such Registrable
      Securities on each such Trading Market or another Eligible Market.
    

    
             (h)  Prior to any public offering of Registrable Securities, use
      its commercially reasonable best efforts to register or qualify or
      cooperate with Investor in connection with the registration or
      qualification (or exemption from such registration or qualification) of
      such Registrable Securities for offer and sale under the securities or
      Blue Sky laws of such jurisdictions within the United States as Investor
      requests in writing, to keep each such registration or qualification (or
      exemption therefrom) effective for so long as required, but not to
      exceed the duration of the Effectiveness Period, and to do any and all
      other acts or things reasonably necessary or advisable to enable the
      disposition in such jurisdictions of the Registrable Securities covered
      by a Registration Statement; provided, however, that the Company shall
      not be obligated to file any general consent to service of process or to
      qualify as a foreign corporation or as a dealer in securities in any
      jurisdiction in which it is not so qualified or to subject itself to
      taxation in respect of doing business in any jurisdiction in which it is
      not otherwise so subject.
    

    
             (i)  Cooperate with Investor to facilitate the timely preparation
      and delivery of certificates representing Registrable Securities to be
      delivered to a transferee pursuant to a Registration Statement, which
      certificates shall be free, to the extent permitted by this Agreement
      and under law, of all restrictive legends, and to enable such
      Registrable Securities to be in such denominations and registered in
      such names as Investor may reasonably request.
    

    
             (j)  Upon the occurrence of any event described in Section
      6.2(c)(v), as promptly as reasonably possible, prepare a supplement or
      amendment, including a post-effective amendment, to the Registration
      Statement or a supplement to the related Prospectus or any document
      incorporated or deemed to be incorporated therein by reference, and file
      any other required document so that, as thereafter delivered, neither
      the Registration Statement nor such Prospectus will contain an untrue
      statement of a material fact or omit to state a material fact required
      to be stated therein or necessary to make the statements therein, in the
      light of the circumstances under which they were made, not misleading.
    

    
             (k)  Cooperate with any reasonable due diligence investigation
      undertaken by Investor in connection with the sale of Registrable
      Securities, including, without limitation, by making available documents
      and information; provided that the Company shall have no obligation to
      deliver or make available to Investor material, nonpublic information.
    

    
             (l)  Comply with all rules and regulations of the Commission
      applicable to the registration of the Registrable Securities.
    

    
         6.3  Expenses.  
    

    
             (a)  Registration
      Expenses.  The Company shall pay all fees and expenses incident to
      the performance of or compliance with Article VI of this Agreement by
      the Company, including without limitation (a) all registration and
      filing fees and expenses, including without limitation those related to
      filings with the Commission, any Trading Market and in connection with
      applicable state securities or Blue Sky laws, (b) printing expenses
      (including without limitation expenses of printing certificates for
      Registrable Securities), (c) messenger, telephone and delivery expenses,
      (d) fees and disbursements of counsel for the Company and up to an
      aggregate of $5,000 for fees and disbursements of counsel to Investor,
      (e) fees and expenses of all other Persons retained by the Company in
      connection with the consummation of the transactions contemplated by
      this Agreement, and (f) all listing fees to be paid by the Company to
      the Trading Market.
    

    
      
        

        

      

      
        
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             (b)  Selling
      Expenses.  All underwriting discounts and selling commissions
      applicable to the sale of Registrable Securities and the aggregate fees
      and expenses of legal counsel for Investor relating to the sale of
      securities registered by or on behalf of Investor shall be borne by
      Investor.
    

    
         6.4  Indemnification.
    

    
             (a)  Indemnification
      by the Company.  The Company shall, notwithstanding any termination
      of this Agreement, indemnify and hold harmless Investor, the officers,
      directors, partners, members, agents and employees of Investor, each
      Person who controls Investor (within the meaning of Section 15 of the
      Securities Act or Section 20 of the Exchange Act) and the officers,
      directors, partners, members, agents and employees of each such
      controlling Person, to the fullest extent permitted by applicable law,
      from and against any and all Losses, as incurred, arising out of or
      relating to any untrue or alleged untrue statement of a material fact
      contained in the Registration Statement, any Prospectus or any form of
      Company prospectus or in any amendment or supplement thereto or in any
      Company preliminary prospectus, or arising out of or relating to any
      omission or alleged omission of a material fact required to be stated
      therein or necessary to make the statements therein (in the case of any
      Prospectus or form of prospectus or supplement thereto, in the light of
      the circumstances under which they were made) not misleading, except to
      the extent, but only to the extent, that (A) such untrue statements,
      alleged untrue statements, omissions or alleged omissions are based
      solely upon information regarding Investor furnished in writing to the
      Company by Investor for use therein, or to the extent that such
      information relates to Investor or Investor’s proposed method of
      distribution of Registrable Securities, or (B) in the case of an
      occurrence of an event of the type specified in Section 6.2(c)(iii)-(v),
      the use by Investor of an outdated or defective Prospectus after the
      Company has notified Investor in writing that the Prospectus is outdated
      or defective and prior to the receipt by Investor of the Advice
      contemplated in Section 6.5. The Company shall notify Investor promptly
      of the institution, threat or assertion of any Proceeding of which the
      Company is aware in connection with the transactions contemplated by
      this Agreement. Notwithstanding the foregoing, the Company shall not be
      liable to Investor under this Section 6.4(a) to the extent that Losses
      giving rise to an indemnification obligation hereunder are the result of
      fraud committed by Investor.
    

    
             (b)  Indemnification
      by Investor.  Investor shall indemnify and hold harmless the
      Company, its directors, officers, agents and employees, each Person who
      controls the Company (within the meaning of Section 15 of the Securities
      Act and Section 20 of the Exchange Act), and the directors, officers,
      agents or employees of such controlling Persons, to the fullest extent
      permitted by applicable law, from and against all Losses (as determined
      by a court of competent jurisdiction in a final judgment not subject to
      appeal or review) arising solely out of any untrue statement of a
      material fact contained in the Registration Statement, any Prospectus,
      or any form of prospectus, or in any amendment or supplement thereto, or
      arising solely out of any omission of a material fact required to be
      stated therein or necessary to make the statements therein (in the case
      of any Prospectus or form of prospectus or supplement thereto, in the
      light of the circumstances under which they were made) not misleading to
      the extent, but only to the extent, that such untrue statement or
      omission is contained in any information so furnished by Investor to the
      Company specifically for inclusion in such Registration Statement or
      such Prospectus or to the extent that (i) such untrue statements or
      omissions are based solely upon information regarding Investor furnished
      to the Company by Investor expressly for use therein, or to the extent
      that such information relates to Investor or Investor’s proposed method
      of distribution of Registrable Securities and was reviewed and expressly
      approved by Investor expressly for use in the Registration Statement,
      such Prospectus or such form of Prospectus or in any amendment or
      supplement thereto or (ii) in the case of an occurrence of an event of
      the type specified in Section 6.2(c)(iii)-(v), the use by Investor of an
      outdated or defective Prospectus after the Company has notified Investor
      in writing that the Prospectus is outdated or defective and prior to the
      receipt by Investor of the Advice contemplated in Section 6.5. In no
      event shall the liability of the Investor hereunder be greater in amount
      than the dollar amount of the net proceeds received by such Investor
      upon the sale of the Registrable Securities giving rise to such
      indemnification obligation except in the event of fraud by such Investor
      and such fraud gave rise in whole or in part to such Losses.
      Notwithstanding the foregoing, Investor shall not be liable under this
      Section 6.4(b) to the extent that Losses giving rise to such
      indemnification obligation are the result of fraud committed by the
      Company.
    

    
      
        

        

      

      
        
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             (c)  Conduct of
      Indemnification Proceedings.  If any Proceeding shall be brought or
      asserted against any Person entitled to indemnity hereunder (an “Indemnified
      Party”), such Indemnified Party shall promptly notify the Person
      from whom indemnity is sought (the “Indemnifying Party”) in
      writing, and the Indemnifying Party shall assume the defense thereof,
      including the employment of counsel reasonably satisfactory to the
      Indemnified Party and the payment of all fees and expenses incurred in
      connection with defense thereof.
    

    
      An Indemnified Party shall have the right to employ separate counsel in
      any such Proceeding and to participate in the defense thereof, but the
      fees and expenses of such counsel shall be at the expense of such
      Indemnified Party or Parties unless: (i) the Indemnifying Party has
      agreed in writing to pay such fees and expenses; or (ii) the
      Indemnifying Party shall have failed promptly to assume the defense of
      such Proceeding and to employ counsel reasonably satisfactory to such
      Indemnified Party in any such Proceeding after prompt notice of such
      proceeding pursuant to the preceding paragraph; or (iii) the named
      parties to any such Proceeding (including any impleaded parties) include
      both such Indemnified Party and the Indemnifying Party, and such
      Indemnified Party shall have been advised by counsel that a conflict of
      interest is likely to immediately exist if the same counsel were to
      represent such Indemnified Party and the Indemnifying Party (in which
      case, if such Indemnified Party notifies the Indemnifying Party in
      writing that it elects to employ separate counsel at the expense of the
      Indemnifying Party, the Indemnifying Party shall not have the right to
      assume the defense thereof and such counsel shall be at the expense of
      the Indemnifying Party). The Indemnifying Party shall not be liable for
      any settlement of any such Proceeding effected without its written
      consent, which consent shall not be unreasonably withheld. No
      Indemnifying Party shall, without the prior written consent of the
      Indemnified Party, effect any settlement of any pending Proceeding in
      respect of which any Indemnified Party is a party, unless such
      settlement includes an unconditional release of such Indemnified Party
      from all liability on claims that are the subject matter of such
      Proceeding.
    

    
      All fees and expenses of the Indemnified Party (including reasonable
      fees and expenses to the extent incurred in connection with
      investigating or preparing to defend such Proceeding in a manner not
      inconsistent with this Section) shall be paid to the Indemnified Party,
      as incurred, within ten (10) Trading Days of written notice thereof to
      the Indemnifying Party (regardless of whether it is ultimately
      determined that an Indemnified Party is not entitled to indemnification
      hereunder; provided, that the Indemnifying Party (i) shall have no
      obligation to pay such expenses should the Indemnified Party fail to
      provide prompt notice of a claim for indemnification under this Section
      and (ii) may require an Indemnified Party to undertake to reimburse all
      such fees and expenses to the extent it is finally judicially determined
      that such Indemnified Party is not entitled to indemnification
      hereunder).
    

    
             (d)  Contribution.  If
      a claim for indemnification under Section 6.4(a) or (b) is unavailable
      to an Indemnified Party (by reason of public policy or otherwise), then
      the Indemnifying Party, in lieu of indemnifying such Indemnified Party,
      shall contribute to the amount paid or payable by such Indemnified Party
      as a result of such Losses, in such proportion as is appropriate to
      reflect the relative fault of the Indemnifying Party and Indemnified
      Party in connection with the actions, statements or omissions that
      resulted in such Losses as well as any other relevant equitable
      considerations. The relative fault of such Indemnifying Party and
      Indemnified Party shall be determined by reference to, among other
      things, whether any action in question, including any untrue or alleged
      untrue statement of a material fact or omission or alleged omission of a
      material fact, has been taken or made by, or relates to information
      supplied by, such Indemnifying Party or Indemnified Party, and the
      parties’ relative intent, knowledge, access to information and
      opportunity to correct or prevent such action, statement or omission.
      The amount paid or payable by a party as a result of any Losses shall be
      deemed to include, subject to the limitations set forth in Section
      6.4(c), any reasonable attorneys’ or other reasonable fees or expenses
      incurred by such party in connection with any Proceeding to the extent
      such party would have been indemnified for such fees or expenses if the
      indemnification provided for in this Section was available to such party
      in accordance with its terms.
    

    
      The parties hereto agree that it would not be just and equitable if
      contribution pursuant to this Section 6.4(d) were determined by pro rata
      allocation or by any other method of allocation that does not take into
      account the equitable considerations referred to in the immediately
      preceding paragraph. Notwithstanding the provisions of this Section
      6.4(d), Investor shall not be required to contribute, in the aggregate,
      any amount in excess of the amount by which the proceeds actually
      received by Investor from the sale of the Registrable Securities subject
      to the Proceeding exceeds the amount of any damages that Investor has
      otherwise been required to pay by reason of such untrue or alleged
      untrue statement or omission or alleged omission, except in the event of
      fraud by Investor and such fraud gave rise in whole or in part to such
      Losses. In addition, no Person guilty of fraudulent misrepresentation
      (within the meaning of Section 11(f) of the Securities Act) shall be
      entitled to contribution from any Person who was not guilty of such
      fraudulent misrepresentation.
    

    
      
        

        

      

      
        
          - 20 -
        

        
          

        

      

      
        

        

      

    

    
      The indemnity and contribution agreements contained in this Section are
      in addition to any liability that the Indemnifying Parties may have to
      the Indemnified Parties.
    

    
         6.5  Dispositions.  Investor agrees
      that it will comply with the prospectus delivery requirements of the
      Securities Act as applicable to it in connection with sales of
      Registrable Securities pursuant to the Registration Statement. Investor
      further agrees that, upon receipt of a notice from the Company of the
      occurrence of any event of the kind described in Sections 6.2(c)(iii),
      (iv) or (v), Investor will discontinue disposition of such Registrable
      Securities under the Registration Statement until Investor’s receipt of
      the copies of the supplemented Prospectus and/or amended Registration
      Statement contemplated by Section 6.2(j), or until it is advised in
      writing (the “Advice”) by the Company that the use of the
      applicable Prospectus may be resumed, and, in either case, has received
      copies of any additional or supplemental filings that are incorporated
      or deemed to be incorporated by reference in such Prospectus or
      Registration Statement. The Company may provide appropriate stop orders
      to enforce the provisions of this paragraph.
    

    
         6.6  No Piggyback on Registrations.  Except
      as disclosed in or contemplated by the SEC Reports, neither the Company
      nor any of its security holders (other than Investor in such capacity
      pursuant hereto) may include securities of the Company in the
      Registration Statement other than the Registrable Securities, and the
      Company shall not after the date hereof enter into any agreement
      providing any such right to any of its security holders.
    

    
         6.7  Piggy-Back Registrations.  If at
      any time during the Effectiveness Period there is not an effective
      Registration Statement covering all of the Registrable Securities and
      the Company shall determine to prepare and file with the Commission a
      registration statement relating to an offering for its own account or
      the account of others under the Securities Act of any of its equity
      securities, other than on Form S-4 or Form S-8 (each as promulgated
      under the Securities Act) or their then equivalents relating to equity
      securities to be issued solely in connection with any acquisition of any
      entity or business or equity securities issuable in connection with
      stock option or other employee benefit plans, then the Company shall
      send to Investor written notice of such determination and if, within ten
      (10) days after receipt of such notice, Investor shall so request in
      writing, the Company shall include in such registration statement all or
      any part of such Registrable Securities Investor requests to be
      registered.
    

    
         6.8  No Restraint on Registration.  Investor
      shall have no right to take any action to restrain, enjoin or otherwise
      delay any registration pursuant to this Agreement as a result of any
      controversy that may arise with respect to the interpretation or
      implementation of this Agreement.
    

    
      ARTICLE VII  
MISCELLANEOUS
    

    
         7.1  Fees and Expenses.  Except as
      expressly set forth in the Transaction Documents to the contrary, each
      party shall pay the fees and expenses of its advisers, counsel,
      accountants and other experts, if any, and all other expenses incurred
      by such party incident to the negotiation, preparation, execution,
      delivery and performance of this Agreement.  The Company shall pay all
      Transfer Agent fees, DWAC Fees (provided the Transfer Agent is
      participating in the Depository Trust Company Fast Automated Securities
      Transfer program), stamp taxes and other taxes and duties levied in
      connection with the sale and issuance of the Common Shares, Warrant and
      Warrant Shares.
    

    
         7.2  Entire Agreement.  The
      Transaction Documents, together with the Exhibits and Schedules thereto,
      contain the entire understanding of the parties with respect to the
      subject matter hereof and supersede all prior agreements and
      understandings, oral or written, with respect to such matters, which the
      parties acknowledge have been merged into such documents, exhibits and
      schedules.  At or after the Closing, and without further consideration,
      the Company will execute and deliver to Investor such further documents
      as may be reasonably requested in order to give practical effect to the
      intention of the parties under the Transaction Documents.
    

    
      
        

        

      

      
        
          - 21 -
        

        
          

        

      

      
        

        

      

    

    
         7.3  Notices.  Any and all notices or
      other communications or deliveries required or permitted to be provided
      hereunder shall be in writing and shall be deemed given and effective on
      the earliest of (a) the date of transmission, if such notice or
      communication is delivered via facsimile at the facsimile number
      specified in this Section 7.3 prior to 6:30 p.m. (Chicago time) on a
      Trading Day, (b) the next Trading Day after the date of transmission, if
      such notice or communication is delivered via facsimile at the facsimile
      number specified in this Section 7.3 on a day that is not a Trading Day
      or later than 6:30 p.m. (Chicago time) on any Trading Day, (c) the
      Trading Day following the date of deposit with a nationally recognized
      overnight courier service, or (d) upon actual receipt by the party to
      whom such notice is required to be given.  The addresses and facsimile
      numbers for such notices and communications are those set forth on the
      signature pages hereof, or such other address or facsimile number as may
      be designated in writing hereafter, in the same manner, by any such
      Person.
    

    
         7.4  Amendments; Waivers.  No
      provision of this Agreement may be waived or amended except in a written
      instrument signed, in the case of an amendment, by the Company and
      Investor or, in the case of a waiver, by the party against whom
      enforcement of any such waiver is sought.  No waiver of any default with
      respect to any provision, condition or requirement of this Agreement
      shall be deemed to be a continuing waiver in the future or a waiver of
      any subsequent default or a waiver of any other provision, condition or
      requirement hereof, nor shall any delay or omission of either party to
      exercise any right hereunder in any manner impair the exercise of any
      such right.  
    

    
         7.5  Construction.  The headings
      herein are for convenience only, do not constitute a part of this
      Agreement and shall not be deemed to limit or affect any of the
      provisions hereof.  The language used in this Agreement will be deemed
      to be the language chosen by the parties to express their mutual intent,
      and no rules of strict construction will be applied against any party.
    

    
         7.6  Successors and Assigns.  This
      Agreement shall be binding upon and inure to the benefit of the parties
      and their successors and permitted assigns.  The Company may not assign
      this Agreement or any rights or obligations hereunder without the prior
      written consent of Investor.  Subject to the other terms and provisions
      herein, Investor may assign its rights under this Agreement to any
      Person to whom Investor assigns or transfers any Common Shares, provided
      such transferee agrees in writing to be bound, with respect to the
      transferred Common Shares, by the provisions hereof that apply to
      Investor and the assignor shall remain liable for the continued
      performance of all its obligations under this
      Agreement.  Notwithstanding anything to the contrary herein, Common
      Shares may be assigned to any Person in connection with a bona fide
      margin account or other loan or financing arrangement secured by such
      Common Shares.
    

    
         7.7  No Third-Party Beneficiaries.  This
      Agreement is intended for the benefit of the parties hereto and their
      respective successors and permitted assigns and is not for the benefit
      of, nor may any provision hereof be enforced by, any other Person,
      except that each Indemnified Party is an intended third party
      beneficiary of Section 6.4 and (in each case) may enforce the provisions
      of such Sections directly against the parties with obligations
      thereunder.
    

    
         7.8  Governing Law; Venue; Waiver of Jury
      Trial.  THE CORPORATE LAWS OF THE STATE OF LOUISIANA SHALL GOVERN
      ALL ISSUES CONCERNING THE RELATIVE RIGHTS OF THE COMPANY AND ITS
      STOCKHOLDERS.  ALL QUESTIONS CONCERNING THE CONSTRUCTION, VALIDITY,
      ENFORCEMENT AND INTERPRETATION OF THIS AGREEMENT SHALL BE GOVERNED BY
      AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF
      ILLINOIS.  THE COMPANY AND INVESTOR HEREBY IRREVOCABLY SUBMIT TO THE
      EXCLUSIVE JURISDICTION OF THE STATE AND FEDERAL COURTS SITTING IN
      ILLINOIS FOR THE ADJUDICATION OF ANY DISPUTE BROUGHT BY THE COMPANY OR
      INVESTOR HEREUNDER, IN CONNECTION HEREWITH OR WITH ANY TRANSACTION
      CONTEMPLATED HEREBY OR DISCUSSED HEREIN (INCLUDING WITH RESPECT TO THE
      ENFORCEMENT OF ANY OF THE TRANSACTION DOCUMENTS), AND HEREBY IRREVOCABLY
      WAIVE, AND AGREE NOT TO ASSERT IN ANY SUIT, ACTION OR PROCEEDING BROUGHT
      BY THE COMPANY OR ANY INVESTOR, ANY CLAIM THAT IT IS NOT PERSONALLY
      SUBJECT TO THE JURISDICTION OF ANY SUCH COURT, OR THAT SUCH SUIT, ACTION
      OR PROCEEDING IS IMPROPER.  EACH PARTY HEREBY IRREVOCABLY WAIVES
      PERSONAL SERVICE OF PROCESS AND CONSENTS TO PROCESS BEING SERVED IN ANY
      SUCH SUIT, ACTION OR PROCEEDING BY MAILING A COPY THEREOF VIA REGISTERED
      OR CERTIFIED MAIL OR OVERNIGHT DELIVERY (WITH EVIDENCE OF DELIVERY) TO
      SUCH PARTY AT THE ADDRESS IN EFFECT FOR NOTICES TO IT UNDER THIS
      AGREEMENT AND AGREES THAT SUCH SERVICE SHALL CONSTITUTE GOOD AND
      SUFFICIENT SERVICE OF PROCESS AND NOTICE THEREOF.  NOTHING CONTAINED
      HEREIN SHALL BE DEEMED TO LIMIT IN ANY WAY ANY RIGHT TO SERVE PROCESS IN
      ANY MANNER PERMITTED BY LAW.  THE COMPANY AND INVESTOR HEREBY WAIVE ALL
      RIGHTS TO A TRIAL BY JURY.
    

    
      
        

        

      

      
        
          - 22 -
        

        
          

        

      

      
        

        

      

    

    
         7.9  Survival.  The representations
      and warranties contained herein shall survive until the Closing for a
      period of one (1) year.  All covenants in this Agreement shall survive
      the Closing indefinitely (or for such shorter period as may be expressly
      set forth herein).
    

    
        7.10  Execution.  This Agreement may be
      executed in two or more counterparts, all of which when taken together
      shall be considered one and the same agreement and shall become
      effective when counterparts have been signed by each party and delivered
      to the other parties, it being understood that all parties need not sign
      the same counterpart.  In the event that any signature is delivered by
      facsimile transmission, such signature shall create a valid and binding
      obligation of the party executing (or on whose behalf such signature is
      executed) with the same force and effect as if such facsimile signature
      page were an original thereof.
    

    
        7.11  Severability.  If any provision of
      this Agreement is held to be invalid or unenforceable in any respect,
      the validity and enforceability of the remaining terms and provisions of
      this Agreement shall not in any way be affected or impaired thereby and
      the parties will attempt to agree upon a valid and enforceable provision
      that is a reasonable substitute therefor, and upon so agreeing, shall
      incorporate such substitute provision in this Agreement.
    

    
        7.12  Rescission and Withdrawal Right.  Notwithstanding
      anything to the contrary contained in (and without limiting any similar
      provisions of) the Transaction Documents, whenever Investor exercises a
      right, election, demand or option owed to Investor by the Company under
      a Transaction Document and the Company does not timely perform its
      related obligations within the periods therein provided (including any
      applicable cure period), then, prior to the performance by the Company
      of the Company’s related obligation, Investor may rescind or withdraw,
      in its sole discretion from time to time upon written notice to the
      Company, any relevant notice, demand or election in whole or in part
      without prejudice to its future actions and rights.  
    

    
        7.13  Replacement of Common Shares.  If any
      certificate or instrument evidencing any Common Shares, Warrant or
      Warrant Shares is mutilated, lost, stolen or destroyed, the Company
      shall issue or cause to be issued in exchange and substitution for and
      upon cancellation thereof, or in lieu of and substitution therefor, a
      new certificate or instrument, but only upon receipt of evidence
      reasonably satisfactory to the Company of such loss, theft or
      destruction and the execution by the holder thereof of a customary lost
      certificate affidavit of that fact and an agreement to indemnify and
      hold harmless the Company for any losses in connection therewith,
      including a customary and reasonable bond, if requested.  The applicants
      for a new certificate or instrument under such circumstances shall also
      pay any reasonable third-party costs associated with the issuance of
      such replacement certificates.
    

    
        7.14  Remedies.  In addition to being
      entitled to exercise all rights provided herein or granted by law,
      including recovery of damages, Investor and the Company will be entitled
      to seek specific performance under the Transaction Documents.  The
      parties agree that monetary damages may not be adequate compensation for
      any loss incurred by reason of any breach of obligations described in
      the foregoing sentence and hereby agrees to waive in any action for
      specific performance of any such obligation (other than in connection
      with any action for temporary restraining order) the defense that a
      remedy at law would be adequate.
    

    
        7.15  Adjustments in Share Numbers and Prices.  In
      the event of any stock split, subdivision, dividend or distribution
      payable in shares of Common Stock (or other securities or rights
      convertible into, or entitling the holder thereof to receive directly or
      indirectly shares of Common Stock), combination or other similar
      recapitalization or event occurring after the date hereof, each
      reference in any Transaction Document to a number of shares or a price
      per share shall be amended to appropriately account for such event.
    

    
      [signature pages follow]
    

    
      
        

        

      

      
        
          - 23 -
        

        
          

        

      

      
        

        

      

    

    
      IN WITNESS WHEREOF, the parties hereto have caused this Securities
      Purchase Agreement to be duly executed by their respective authorized
      signatories as of the date first indicated above.
    

    
    	
          
            The Company:
          

          
             
          

          
            AKORN, INC.
          

          
             
          

          
             
          

          
            By: _____________________________________
          

          
            Name: Timothy A. Dick
          

          
            Title: Chief Financial Officer
          

        	
          
            Investor:
          

          
             
          

          
            SERUM INSTITUTE OF INDIA LTD.
          

          
             
          

          
             
          

          
            By: _____________________________________
          

          
            Name: Dr Cyrus Soli Poonawalla
          

          
            Title: Chairman & Managing Director
          

        
	

        	
           
        
	

        	
           
        
	
          Address for Notice:

          
            1925 West Field Court
          

          
            Lake Forest, Illinois 60045
          

        	
          Address for Notice:

          
            212/2 Off Soli Poonawalla Road
          

          
            Hadapsar, Pune 411028 India
          

        
	

        	
           
        
	

        	
           
        
	
          Facsimile No.: (847) 353-4936

          
            Telephone No.: (847) 279-6123
          

          
            Attn: Chief Financial Officer
          

        	
          Facsimile No.: 91 20 26133228

          
            Telephone No.: 91 20 26993900
          

          
            Attn: Chairman
          

        
	

        	
           
        
	

        	
           
        
	
          With a copy to: Bryan Cave LLP

          
            Facsimile: (312) 698-7425
          

          
            Telephone: (312) 602-5025
          

          
            Attn: Don Figliulo, Esq
          

        	
          With a copy to: Makarand Karkare

          
            Company Secretary, Serum Institute of India
          

          
            Facsimile No.: 91 20 26133228
          

          
            Telephone No.: 91 20 26100341
          

          
            Attn: Company Secretary
          

        

    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
      Exhibits:
    

    
      A         Schedule of Common Shares
B         Instruction
      Sheet For Investor
C         Form of Warrant
D         Non-Disclosure
      Agreement
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
      Exhibit A
    

    
      Schedule of Common Shares
    

    
    	
          
            Investor
          

        	
          
            Common Shares
          

        
	

        	
           
        
	
          Serum Institute

          
            of India
          

        	
          1,838,235
        

    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
      Exhibit B
    

    
      INSTRUCTION SHEET FOR INVESTOR
    

    
      (to be read in conjunction with the entire Securities Purchase Agreement)
    

    
      A.        Complete the following items in the Securities Purchase
      Agreement:
    

    
      1.        Complete and execute the Signature Page.  
    

    
      The Agreement must be executed by an individual authorized to bind
      Investor.
    

    
      2.        Exhibit B-1 - Stock Certificate Questionnaire:
    

    
      Provide the information requested by the Stock Certificate Questionnaire;
    

    
      3.        Exhibit B-2 - Investor Certificate:
    

    
      Provide the information requested by the Certificate for Corporate,
      Partnership, Trust, Foundation and Joint Investors (B-2).
    

    
      4.        Return, via facsimile, the signed Securities Purchase
      Agreement including the properly completed Exhibits B-1 and B-2, to:
    

    
    	
           
        	
          Bryan Cave LLP
        
	

        	
          161 North Clark Street, Suite 4300
        
	

        	
          Chicago, IL 60601
        
	

        	
          Facsimile: (312) 698-7425
        
	

        	
          Telephone: (312) 602-5025
        
	

        	
          E-mail: don.figliulo@bryancave.com
        
	

        	
          Attn: Don Figliulo
        

    

    
      5.        After completing instruction number four (4) above, deliver
      the original signed Securities Purchase Agreement including the
      properly completed Exhibits  B-1 and B-2 to:
    

    
    	
           
        	
          Bryan Cave LLP
        
	

        	
          161 North Clark Street, Suite 4300
        
	

        	
          Chicago, IL 60601
        
	

        	
          Facsimile: (312) 698-7425
        
	

        	
          Telephone: (312) 602-5025
        
	

        	
          E-mail: don.figliulo@bryancave.com
        
	

        	
          Attn: Don Figliulo
        

    

    
      B.        Instructions regarding the transfer of funds for the purchase
      of  Shares will be sent via facsimile or email to Investor by the
      Company at a later date.
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
      Exhibit B-1
    

    
      AKORN, INC.
    

    
      STOCK CERTIFICATE QUESTIONNAIRE
    

    
      Please provide us with the following information and either type or
      write clearly and legibly:
    

    
    	
          1. The exact name that the Common Shares are to be registered in
          (this is the name that will appear on the stock certificate(s)). You
          may use a nominee name if appropriate:
        	
          
             
          

          
             
          

          
            Serum Institute of India Limited
          

        
	

        	
           
        
	
          2. The relationship between Investor and the Registered Holder
          listed in response to item 1 above:
        	
          
            Not Applicable
          

        
	

        	
           
        
	
          
            3. The mailing address, telephone and telecopy number of the
            Registered Holder listed in response to item 1 above:
          

        	
          
            212/2 Off Soli Poonawalla Road,
          

          
            Hadapsar, Pune – 411 028, INDIA
          

          
            Telephone – 91 20 26993904
          

        
	

        	
           
        
	
          4. The Tax Identification Number of the Registered Holder listed in
          response to item 1 above:
        	
          
            Not Applicable
          

        

    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
      Exhibit B-2
    

    
      AKORN, INC.
    

    
      CERTIFICATE FOR CORPORATE, PARTNERSHIP,
TRUST, FOUNDATION
      AND JOINT INVESTORS
    

    
      If the investor is a corporation, partnership, trust, pension plan,
      foundation, joint Investor (other than a married couple) or other
      entity, an authorized officer, partner, or trustee must complete, date
      and sign this Certificate.
    

    
      CERTIFICATE
    

    
      The undersigned certifies that the representations and responses below
      are true and accurate:
    

    
      (a)       The investor has been duly formed and is validly existing and
      has full power and authority to invest in the Company.  The person
      signing on behalf of the undersigned has the authority to execute and
      deliver the Securities Purchase Agreement on behalf of Investor and to
      take other actions with respect thereto.
    

    
      (b)       Indicate the form of entity of the undersigned:
    

    
      ____      Limited Partnership
    

    
      ____      General Partnership
    

    
      A LIMITED LIABILITY COMPANY incorporated under the Companies Act 1956
      of India
                ____ Corporation

    

    
    	
           
        	
          
            ____ Revocable Trust (identify each grantor and indicate under
            what circumstances the trust is revocable by the grantor):
          

        
	
           
        	
           
        	
           
        
	
           
        	
           
        	
           
        
	
           
        	
           
        	
           
        
	
          (Continue on a separate piece of paper, if necessary.)
        	

        
	

        	

        	
           
        
	

        	
          
            ____ Other type of Trust (indicate type of trust and, for trusts
            other than pension trusts, name the grantors and beneficiaries):
          

        
	
           
        	
           
        	
           
        
	
           
        	
           
        	
           
        
	
           
        	
           
        	
           
        
	
          (Continue on a separate piece of paper, if necessary.)
        	

        
	

        	

        	
           
        
	

        	
          
            ____ Other form of organization (indicate form of organization
          

        	
          
            (
          

        
	
           
        	
          
             
          

        	
          
            ).
          

        

    

    
      (c)       Indicate the approximate date the undersigned entity was
      formed:
    

    
      22nd May 1984  is the date of incorporation.
    

    
      (d)       In order for the Company to offer and sell the Common Shares
      in conformance with state and federal securities laws, the following
      information must be obtained regarding your investor status.  Please
      initial each category applicable to you as an investor in the Company.
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
      ___       1.        A bank as defined in Section 3(a)(2) of the
      Securities Act, or any savings and loan association or other institution
      as defined in Section 3(a)(5)(A) of the Securities Act whether acting in
      its individual or fiduciary capacity;
    

    
      ___       2.        A broker or dealer registered pursuant to Section 15
      of the Securities Exchange Act of 1934;
    

    
      ___       3.        An insurance company as defined in Section 2(13) of
      the Securities Act;
    

    
      ___       4.        An investment company registered under the
      Investment Company Act of 1940 or a business development company as
      defined in Section  2(a)(48) of that Act;
    

    
      ___       5.        A Small Business Investment Company licensed by the
      U.S.  Small Business Administration under Section 301(c) or (d) of the
      Small Business Investment Act of 1958;
    

    
      ___       6.        A plan established and maintained by a state, its
      political subdivisions, or any agency or instrumentality of a state or
      its political subdivisions, for the benefit of its employees, if such
      plan has total assets in excess of $5,000,000;
    

    
      ___       7.        An employee benefit plan within the meaning of the
      Employee Retirement Income Security Act of 1974, if the investment
      decision is made by a plan fiduciary, as defined in Section 3(21) of
      such Act, which is either a bank, savings and loan association,
      insurance company, or registered investment advisor, or if the employee
      benefit plan has total assets in excess of $5,000,000 or, if a
      self-directed plan, with investment decisions made solely by persons
      that are accredited investors;
    

    
      ___       8.        A private business development company as defined in
      Section 202(a)(22) of the Investment Advisers Act of 1940;
    

    
      ___       9.        An organization described in Section 501(c)(3) of
      the Internal Revenue Code, corporation, Massachusetts or similar
      business trust, or partnership, not formed for the specific purpose of
      acquiring the Shares, with total assets in excess of $5,000,000;
    

    
      ___       10.       A trust, with total assets in excess of $5,000,000,
      not formed for the specific purpose of acquiring the Shares, whose
      purchase is directed by a sophisticated person as described in
      Rule  506(b)(2)(ii) of the Exchange Act;
    

    
      ___       11.       An entity in which all of the equity owners qualify
      under any of the above subparagraphs.  If the undersigned belongs to
      this investor category only, list the equity owners of the undersigned,
      and the investor category which each such equity owner satisfies:
_________________________________________________________________________________________________________________________________________________________
_________________________________________________________________________________________________________________________________________________________(Continue
      on a separate piece of paper, if necessary.)
    

    
      Please set forth in the space provided below the (i) states, if any, in
      the U.S. in which you maintained your principal office during the past
      two years and the dates during which you maintained your office in each
      state, (ii) state(s), if any, in which you are incorporated or otherwise
      organized and (iii) state(s), if any, in which you pay income taxes.
    

    
      NOT APPLICABLE
    

    
      ________________________________________________________________________________________________________________________________________________________
_________________________________________________________________________________________________________________________________________________________
    

    
      
        

        

      

      
        
          - 2 -
        

        
          

        

      

      
        

        

      

    

    

    

    
      Dated: March 10, 2010
    

    
      SERUM INSTITUTE OF INDIA LIMITED
Name of investor
    

    
      

      

      ___________________________________________
Signature and title of
      authorized officer, partner or trustee
    

    
      DR CYRUS SOLI POONAWALLA
CHAIRMAN & MANAGING DIRECTOR
    

    
      
        

        

      

      
        
          - 3 -
        

        
          

        

      

      
        

        

      

    

    
      Exhibit C
    

    
      WARRANT
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
      Exhibit D
    

    
      NON-DISCLOSURE AGREEMENT

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