Document:

exv10w2

Exhibit
10.2

Third Wave Technologies, Inc.

Incentive Compensation Plan

Plan Objective: The Third Wave Technologies, Inc. Incentive Plan (referred to as the “IC
Plan”) is designed to encourage results-oriented actions on employees.

Eligibility: All regular full-time and part-time employees are eligible to participate in
the IC Plan.

Administration: The IC Plan is administered by the Compensation Committee of the Company’s
Board of Directors (the “Administrator”). The Administrator may delegate its authority to
administer the IC Plan to an individual or committee.

Performance Period: The Performance Period begins on January 1 and ends of December 31 of
the applicable fiscal year.

Performance Goals: The Administrator shall establish performance goals for the specified
Performance Period.

Target Awards: The CEO and Administrator shall establish for each Participant a target
award that shall be payable if and to the extent the Company and individual attains the performance
goals for the specified Performance Period.

Calculation of the Incentive Awards: At the end of the Performance Period, the CEO will
recommend to the Administrator for each participant whether and to what extent the performance
goals have been met and the percentage of the target award that is earned.

New Hires: Employees who start after January 1 of the applicable Performance Period are
eligible for a pro-rated award based on their length of employment during the Performance Period.

Payment of IC Award: Employees must be employed through December 31 of the applicable
fiscal year and on the date the IC payment is actually paid to be eligible for the payment. IC
awards are paid as soon as administratively possible after the close of year-end, but no later than
March 15 of the following year.exv10w2

EXHIBIT 10.2

Execution Copy

AMENDMENT TO CREDIT AGREEMENT

     THIS AMENDMENT TO CREDIT AGREEMENT (this “Amendment”) is executed and delivered as of
this 9th day of May 2008 among LASALLE BANK NATIONAL ASSOCIATION, as administrative agent (the
“Administrative Agent”), the financial institutions party hereto (the “Lenders”),
AKORN, INC., a Louisiana corporation (“Akorn”) and AKORN (NEW JERSEY), INC., an Illinois
corporation (“Akorn New Jersey”).

W
I T N E S S E T H :

     A. The Administrative Agent, Akorn, Akorn New Jersey and the Lenders entered into a Credit
Agreement dated as of October 7, 2003 (as amended, restated, supplemented or otherwise modified
from time to time, the “Credit Agreement”). Capitalized terms used but not defined herein
shall have the meanings attributed to them in the Credit Agreement.

     B. The Companies have requested that the Administrative Agent and the Required Lenders consent
to certain terms of the Credit Agreement, subject to the terms and conditions set forth herein.

     NOW, THEREFORE, in consideration of the mutual covenants contained herein, the parties hereto
hereby agree as follows:

     1. Amendment. Upon the Effective Date (as defined below), the Credit Agreement shall
be amended by deleting in its entirety the definition of “EBITDA” set forth in Section 1.1 of the
Credit Agreement and inserting the following in its place:

EBITDA means, for any period, Consolidated Net Income for such period
plus (a) to the extent deducted in determining such Consolidated Net Income,
Interest Expense, income tax expense, depreciation and amortization for such period
plus (b) solely for the purposes of determining EBITDA for the Fiscal Year
2003, the Decatur Add Back and the Refinancing Expense Add Back plus (c)
solely for determining EBITDA for the Computation Periods ending December 31, 2005
and March 31, 2006, research and development expenditures during such Computation
Periods in an amount not to exceed $3,000,000 plus (d) solely for
determining EBITDA for the Computation Periods ending December 31, 2006 and March
31, 2007 (but subject to the condition that the Companies have Cash Equivalent
Investments at all times during each such applicable Computation Period equal to or
in excess of $5,000,000), research and development expenses during such Computation
Period in an amount not to exceed $10,000,000 plus (e) solely for
determining EBITDA for the Computation Period ending June 30, 2007, research and
development expenditures actually made during such Computation Period in an amount
not to exceed $15,000,000, so long as the Companies have Cash Equivalent Investments
(exclusive of any Cash Equivalent Investments attributable to or representing the
proceeds of Revolving Loans) at all times during each such applicable Computation
Period equal to or in excess of (x)

 

 

if there were no Revolving Loans outstanding during such Computation Period,
$5,000,000, or (y) otherwise, the greater of (i) $5,000,000 and (ii) 50% of the
amount added pursuant to this clause (e) plus (f) solely for determining
EBITDA for the Computation Periods ending March 30, 2008, June 30, 2008, September
30, 2008 and December 31, 2008, the amount of the filing fee for a New Drug
Application actually paid in cash to the Food and Drug Administration by Akorn on
July 31, 2007, such amount not to exceed $896,000 and the amount actually paid in
cash by Akorn on October 22, 2007 in connection with securing exclusive rights to
certain intellectual property, such amount not to exceed $350,000.

     2. Representations and Warranties. To induce the Administrative Agent and the Lenders
to execute this Amendment, each Company jointly and severally represents and warrants to the
Administrative Agent and the Lenders as follows:

     (a) Each Company is in good standing under the laws of its jurisdiction of formation
and in each jurisdiction where, because of the nature of its activities or properties, such
qualification is required, except for such jurisdictions where the failure to so qualify
would not have a Material Adverse Effect.

     (b) Each Company is duly authorized to execute and deliver this Amendment and is duly
authorized to perform its obligations hereunder.

     (c) The execution, delivery and performance by the Companies of this Amendment do not
and will not (i) require any consent or approval of any governmental agency or authority
(other than any consent or approval which has been obtained and is in full force and
effect), (ii) conflict with (A) any provision of law, (B) the charter, by-laws or other
organizational documents of any Company or (C) any agreement, indenture, instrument or other
document, or any judgment, order or decree, which is binding upon any Company or any of its
properties or (iii) require, or result in, the creation or imposition of any Lien on any
asset of any Company.

     (d) This Amendment is the legal, valid and binding obligation of each Company,
enforceable against such Company in accordance with its terms, subject to bankruptcy,
insolvency and similar laws affecting enforceability of creditors’ rights generally and to
general principals of equity.

     (e) The representations and warranties in the Loan Documents (including but not limited
to Section 9 of the Credit Agreement) are true and correct in all material respects with the
same effect as though made on and as of the date of this Amendment (except to the extent
stated to relate to a specific earlier date, in which case such representations and
warranties were true and correct as of such earlier date).

     (f) No Event of Default or Unmatured Event of Default has occurred and is continuing.

-2-

 

     3. Conditions to Effectiveness. The effectiveness of this Amendment is conditioned
upon the execution and delivery of this Amendment by each Company, the
Administrative Agent and the Required Lenders. The date on which such event has occurred is
the “Effective Date”.

     4. Affirmation. Except as specifically provided in this Amendment, the execution,
delivery and effectiveness of this Amendment shall not operate as a waiver or forbearance of any
Unmatured Event of Default or Event of Default or any right, power or remedy of the Administrative
Agent or any Lender under the Credit Agreement or any of the other Loan Documents, or constitute a
consent, waiver or modification with respect to any provision of the Credit Agreement or any of the
other Loan Documents, and the Company hereby fully ratifies and affirms each Loan Document to which
it is a party. Reference in any of this Amendment, the Credit Agreement or any other Loan Document
to the Credit Agreement shall be a reference to the Credit Agreement as modified hereby and as
further amended, modified, restated, supplemented or extended from time to time. This Amendment
shall constitute a Loan Document for purposes of the Credit Agreement and the other Loan Documents.

     5. Counterparts. This Amendment may be executed in two or more counterparts, each of
which shall constitute an original, but all of which when taken together shall constitute one
instrument. Delivery of an executed counterpart of this Amendment by facsimile shall be effective
as delivery of an original counterpart.

     6. Headings. The headings and captions of this Amendment are for the purposes of
reference only and shall not affect the construction of, or be taken into consideration in
interpreting, this Amendment.

     7. Further Assurances. Each Company agrees to execute and deliver, or cause to be
executed and delivered, in form and substance satisfactory to the Administrative Agent and the
Lenders, such further documents, instruments, amendments and financing statements and to take such
further action, as may be necessary from time to time to perfect and maintain the liens and
security interests created by the Loan Documents.

     8. APPLICABLE LAW. THIS AMENDMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED
BY THE LAWS OF THE STATE OF ILLINOIS WITHOUT GIVING EFFECT TO ILLINOIS CHOICE OF LAW DOCTRINE.

     9. Acknowledgment. Each Company hereby waives, discharges and forever releases the
Administrative Agent and each of the Lenders, and each of said Person’s employees, officers,
directors, attorneys, stockholders and successors and assigns, from and of any and all claims,
causes of action, allegations or assertions that either Company has or may have had at any time
through (and including) the date of this Amendment, against any or all of the foregoing, regardless
of whether any such claims, causes of action, allegations or assertions are known to either Company
or whether any such claims, causes of action, allegations or assertions arose as a result of the
Administrative Agent’s or any Lender’s actions or omissions in connection with the Credit
Agreement, including any amendments or modifications thereto, or otherwise.

-3-

 

[signature pages follow]

-4-

 

     IN WITNESS WHEREOF, this Amendment has been duly executed and delivered as of the day and year
first above written.

	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	AKORN, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Jeffrey A. Whitnell	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:
	 	CFO	 	 
	 
	 	 	 	 	 	 
	 	 	AKORN (NEW JERSEY), INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Jeffrey A. Whitnell	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:
	 	CFO	 	 
	 
	 	 	 	 	 	 
	 	 	LASALLE BANK NATIONAL ASSOCIATION,	 	 
	 	 	as Administrative Agent and Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Patrick J. O’Toole	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:
	 	Senior Vice President

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