Document:

Exhibit

EXHIBIT 10.1

CENTRAL GARDEN & PET COMPANY
NONEMPLOYEE DIRECTOR EQUITY INCENTIVE PLAN
(As amended effective December 7, 2016)

TABLE OF CONTENTS

Page

		
	SECTION 1
	ESTABLISHMENT, PURPOSE AND DURATION    1

		
	1.1
	Establishment    1

		
	1.2
	Purpose of the Plan    1

		
	1.3
	Effective Date    1

		
	1.4
	Duration of the Plan    1

		
	SECTION 2
	DEFINITIONS    1

		
	2.1
	“Affiliate”    1

		
	2.2
	“Board”    2

		
	2.3
	“Code”    2

		
	2.4
	“Company”    2

		
	2.5
	“Director”    2

		
	2.6
	“Disability”    2

		
	2.7
	“Exchange Act”    2

		
	2.8
	“Exercise Price”    2

		
	2.9
	“Fair Market Value”    2

		
	2.10
	“Nonemployee Director”    2

		
	2.11
	“Option”    2

		
	2.12
	“Optionee”    2

	
			
	 
	i
	 

TABLE OF CONTENTS
(continued)
Page

		
	2.13
	“Plan”    2

		
	2.14
	“Restricted Shares”    2

		
	2.15
	“Shares”    2

		
	SECTION 3
	ADMINISTRATION OF THE PLAN    3

		
	3.1
	The Board    3

		
	3.2
	Authority of the Board    3

		
	3.3
	Decisions Binding    3

		
	3.4
	Administrative Expenses    3

		
	3.5
	Indemnification    3

		
	SECTION 4
	SHARES SUBJECT TO THE PLAN    4

		
	4.1
	Number of Shares    4

		
	4.2
	Effect of Lapsed Options    4

		
	4.3
	Adjustments in Authorized Shares    4

		
	SECTION 5
	ELIGIBILITY    4

		
	5.1
	Eligibility    4

		
	5.2
	Consideration for Grant of Option or Restricted Shares    4

		
	SECTION 6
	OPTIONS    4

		
	6.1
	Grant of Options    4

	
			
	 
	ii
	 

TABLE OF CONTENTS
(continued)
Page

		
	6.2
	Terms of Options    5

		
	SECTION 7
	RESTRICTED SHARES    5

		
	7.1
	Grant of Restricted Shares    5

		
	7.2
	Terms of Restricted Shares    6

		
	SECTION 8
	MISCELLANEOUS    6

		
	8.1
	Amendment or Termination of the Plan    6

		
	8.2
	Beneficiary Designation    6

		
	8.3
	Captions    7

		
	8.4
	Applicable Law; Severability    7

		
	8.5
	No Effect Upon Other Compensation Plans    7

		
	8.6
	No Effect on Service    7

		
	8.7
	Requirements of Law    7

		
	8.8
	Rule 16b-3 Compliance    7

	
			
	 
	iii
	 

CENTRAL GARDEN & PET COMPANY 
NONEMPLOYEE DIRECTOR EQUITY INCENTIVE PLAN 
(As amended effective December 7, 2016)

SECTION 1 
ESTABLISHMENT, PURPOSE AND DURATION
1.1    Establishment.  Central Garden & Pet Company, a Delaware corporation (the “Company”), hereby amends the “Central Garden & Pet Company Nonemployee Director Equity Incentive Plan” (formerly known as the Central Garden & Pet Company Nonemployee Director Stock Option Plan, the “Plan”), for the benefit of nonemployee members of the Board of Directors of the Company (“Nonemployee Directors”), in order to compensate such Nonemployee Directors for their services by awarding them stock options (“Options”) and restricted shares of Company common stock (“Restricted Shares”) under the Plan.  
1.2    Purpose of the Plan.  The purpose of the Plan is to promote the success, and enhance the value, of the Company, by attracting, retaining and motivating Nonemployee Directors of outstanding competence.  The Plan also is designed to align the interests of Nonemployee Directors with the interests of the stockholders of the Company.
1.3    Effective Date.  This amendment of the Plan is effective as of December 7, 2016, subject to the approval of the amendment by an affirmative vote, at the next meeting of the stockholders of the Company, or any adjournment thereof, of the holders of a majority of the outstanding shares of the common stock and Class B stock, voting together as a class, of the Company, present in person or by proxy and entitled to vote at such meeting.  Prior to such affirmative vote, the Plan shall operate pursuant to the terms in effect prior to such amendment.
1.4    Duration of the Plan.  The Plan shall be effective as specified in Section 1.3, and subject to the right of the Board of Directors of the Company to terminate the Plan at any time and for any reason pursuant to Section 8, shall remain in effect thereafter.  In the event that on any date of grant the number of Shares (to be subject to Options or otherwise) granted to all Nonemployee Directors exceeds the number of Shares then available for grant under the Plan, each Nonemployee Director shall share pro rata in the number of Shares that remain available for grant on such date (with Restricted Shares to be provided first).
SECTION 2     
DEFINITIONS
For purposes of this Plan, the following terms shall have the meanings indicated unless a different meaning is plainly required by the context:
2.1    “Affiliate” means any corporation or any other entity (including, but not limited to, partnerships and joint ventures) controlling, controlled by, or under common control with the Company. 

2.2    “Board” means the Board of Directors of the Company.
2.3    “Code” means the Internal Revenue Code of 1986, as amended.  Reference to a specific section of the Code shall include such section, any valid regulation promulgated thereunder, and any comparable provision of any future legislation amending, supplementing or superseding such section.
2.4    “Company” means Central Garden & Pet Company, a Delaware corporation, or any successor thereto.
2.5    “Director” means an individual who is a member of the Board.
2.6    “Disability” means a permanent and total disability within the meaning of section 22(e)(3) of the Code.
2.7    “Exchange Act” means the Securities Exchange Act of 1934, as amended from time to time, or any successor Act thereto.  Reference to a specific section of the Exchange Act shall include such section, any valid regulation promulgated thereunder, and any comparable provision of any future legislation amending, supplementing or superseding such section.
2.8    “Exercise Price” means the price at which a Share may be purchased pursuant to an Option. 
2.9    “Fair Market Value” means the average of the highest and lowest quoted selling prices for Shares on the relevant date or the closing sale price for the applicable Shares on the relevant date, or if there were no sales on such date, the arithmetic mean of the highest and lowest quoted selling prices on the nearest day before and the nearest day after the relevant date, as determined on a consistent basis by the Board.
2.10    “Nonemployee Director” means a Director who is an employee of neither the Company nor of any Affiliate.
2.11    “Option” means an option to purchase Shares which has been granted under the provisions of the Plan.  Options are not intended to be an incentive stock option under section 422 of the Code.
2.12    “Optionee” means a Nonemployee Director to whom an Option has been granted under the provisions of the Plan.
2.13    “Plan” means the Central Garden & Pet Company Nonemployee Director Equity Incentive Plan, as set forth in this instrument and as hereafter amended from time to time.
2.14    “Restricted Shares” means Shares granted pursuant to Section 7 of the Plan.
2.15    “Shares” means the shares of common stock, $0.01 par value, of the Company (“Common Stock”) or the shares of Class A Common Stock, $0.01 par value, of the Company (“Class A Common Stock”).

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SECTION 3     
ADMINISTRATION OF THE PLAN
3.1    The Board.  The Plan shall be administered by the Board.  It shall be the duty of the Board to conduct the general administration of the Plan in accordance with its provisions.
3.2    Authority of the Board.  The Board shall have all powers and discretion necessary or appropriate to administer the Plan and to control its operation in accordance with its terms, including, but not by way of limitation, the following powers:
(a)    To interpret the provisions of the Plan and to determine, in its sole discretion, any question arising under, or in connection with the administration or operation of, the Plan;
(b)    To employ such counsel, agents and advisers, and to obtain such legal, clerical and other services, as it may deem necessary or appropriate in carrying out the provisions of the Plan; and 
(c)    To prescribe, amend and rescind rules and regulations relating to the Plan, and to make all other determinations which may be necessary or advisable for the administration of the Plan.
3.3    Decisions Binding.  All actions, interpretations and decisions of the Board shall be final, conclusive and binding on all persons, and shall be given the maximum deference permitted by law.
3.4    Administrative Expenses.  All expenses incurred in the administration of the Plan by the Board, or otherwise, including legal fees and expenses, shall be paid and borne by the Company.
3.5    Indemnification.  Each person who is or shall have been a member of the Board shall be indemnified and held harmless by the Company against and from any loss, cost, liability, or expense that may be imposed upon or reasonably incurred by him or her in connection with or resulting from any claim, notion, suit, or proceeding to which he or she may be a party or in which he or she may be involved by reason of any action taken or failure to act under the Plan and against and from any and all amounts paid by him or her in settlement thereof, with the Company’s approval, or paid by him or her in satisfaction of any judgment in any such action, suit, or proceeding against him or her, provided he or she shall give the Company an opportunity, at its own expense, to handle and defend the same before he or she undertakes to handle and defend it on his or her own behalf.  The foregoing right of indemnification shall not be exclusive of any other rights of indemnification to which such persons may be entitled under the Company’s Certificate of Incorporation or Bylaws, as a matter of law, or otherwise, or any power that the Company may have to indemnify them or hold them harmless.
SECTION 4     
SHARES SUBJECT TO THE PLAN

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4.1    Number of Shares.  Subject to adjustment as provided in Section 4.3, the maximum number of Shares available for grant under the Plan may not exceed 200,000 shares of Common Stock and 1,287,056 shares of Class A Common Stock.  Such shares may be either authorized but unissued Shares or treasury Shares.
4.2    Effect of Lapsed Options.  If an Option is cancelled, terminates, expires or lapses for any reason, any Shares subject to such Option again shall be made available for grant under the Plan (to the same Optionee or to a different person).
4.3    Adjustments in Authorized Shares.  In the event of any merger, reorganization, consolidation, recapitalization, separation, liquidation, stock dividend, split-up, Share combination, or other change in the corporate structure of the Company affecting the Shares, such adjustment shall be made in the number and class of Shares which may be delivered under the Plan, and in the number and class of and/or the Exercise Price of Shares subject to outstanding Options, as the Board, in its sole discretion, shall determine to be appropriate to prevent the dilution or diminishment of Options.  Notwithstanding the preceding sentence, the number of Shares subject to any Option always shall be a whole number. 
SECTION 5     
ELIGIBILITY
5.1    Eligibility.  All Nonemployee Directors shall be eligible to participate in the Plan.
5.2    Consideration for Grant of Option or Restricted Shares.  Any Option or Restricted Shares under the Plan shall be granted in consideration of the past services of the Nonemployee Director.
SECTION 6     
OPTIONS
6.1    Grant of Options.
6.1.1    Each Nonemployee Director who is a Nonemployee Director on February 20, 1996 automatically will receive on such date an Option to purchase 10,000 Shares.
6.1.2    Each Optionee who received an Option to purchase 10,000 Shares pursuant to Section 6.1.1, and each Nonemployee Director who becomes a Nonemployee Director after February 20, 1996, automatically will receive, on the date of each subsequent annual meeting of the stockholders of the Company on which the Nonemployee Director is such, an Option to purchase such number of Shares (whose class shall be determined by the Board) as determined by A divided by B, where “A” is $200,000 and “B” is the Fair Market Value of an applicable Share on the date on which the Option is granted.  Any fractional Share shall be rounded up to the next full Share.  Accordingly, for example, if the Fair Market Value of a Share on the date of grant is $9.00, then the Optionee or Nonemployee Director (as applicable) would receive an Option to purchase 22,223 Shares (i.e., $200,000 divided by $9.00, rounded up to the next full Share).

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6.2    Terms of Options.
6.2.1    Option Agreement.  Each Option shall be evidenced by a written stock option agreement which shall be executed by the Optionee and the Company.
6.2.2    Exercise Price.  The Exercise Price for the Shares subject to each Option shall be one hundred percent (100%) of the Fair Market Value of such Shares on the date of grant.
6.2.3    Exercisability.  Each Option shall become exercisable with respect to one-third (1/3) of the Shares subject to the Option on each of the dates that is (a) six (6) months, (b) eighteen (18) months, and (c) thirty (30) months after the date of grant of the Option.  Notwithstanding the preceding sentence, if prior to the date when an Option would become exercisable, the Optionee terminates service on the Board on account of death or Disability, the Option shall become exercisable in full on the date of such termination of service. 
6.2.4    Expiration of Options.  Each Option shall terminate upon the expiration of forty-two (42) months from the date of grant of the Option. 
6.2.5    Payment.  Options shall be exercised by the Optionee’s delivery of a written notice of exercise to the Secretary of the Company, setting forth the number of Shares with respect to which the Option is to be exercised, accompanied by full payment for the Shares.
The Exercise Price upon exercise of any Option shall be payable to the Company in full in cash.  The Board, in its sole discretion and pursuant to such procedures as it may specify from time to time, also may permit (a) an Optionee to elect to have the Company withhold Shares having a value equal to the amount required to be withheld or by delivering to the Company already-owned Shares to satisfy the Exercise Price, or (b) by any other means which the Board, in its sole discretion, determines to both provide legal consideration for the Shares, and to be consistent with the purposes of the Plan.  The value of the Shares to be withheld or delivered will be based on their Fair Market Value on the date of exercise.
As soon as practicable after receipt of a written notification of exercise and full payment for the Shares purchased, the Company shall deliver to the Optionee Share certificates (in the Optionee’s name) representing such Shares.
If any shares subject to an Option are not delivered to an Optionee because the Option is exercised through a reduction of shares subject to the Option (i.e., "net exercised"), the number of shares that are not delivered to the Optionee shall remain available for issuance under the Plan. If the Exercise Price of any Option is satisfied by tendering shares of Common Stock or Class A Common Stock held by the Optionee (either by actual delivery or attestation), then the number of shares so tendered shall remain available for issuance under the Plan.
6.2.6    Restrictions on Share Transferability.  The Board may impose such restrictions on any Shares acquired pursuant to the exercise of an Option, as it may deem advisable, including, but not limited to, restrictions related to applicable Federal securities laws, 

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the requirements of any national securities exchange or system upon which Shares are then listed and/or traded, and/or under any blue sky or state securities laws.
6.2.7    Nontransferability of Options.  No Option granted under the Plan may be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated, other than by will, the laws of descent and distribution, or as permitted in Section 8.2.  All Options granted to an Optionee under the Plan shall be exercisable during his or her lifetime only by such Optionee.
SECTION 7     
RESTRICTED SHARES
7.1    Grant of Restricted Shares.  Each Nonemployee Director automatically will receive, on the date of each annual meeting of the stockholders of the Company on which the Nonemployee Director is such, such number of Restricted Shares (whose class shall be determined by the Board) as determined by A divided by B, where “A” is $20,000 and “B” is the Fair Market Value of an applicable Share on the date on which the Restricted Shares are granted.  Any fractional Share shall be rounded up to the next full Share.  Accordingly, for example, if the Fair Market Value of a Share on the date of grant is $9.00, then the Nonemployee Director would receive 2,223 Restricted Shares (i.e., $20,000 divided by $9.00, rounded up to the next full Share).
7.2    Terms of Restricted Shares.
7.2.1    Restricted Share Agreement.  Each restricted Share grant shall be evidenced by a written Restricted Share agreement which shall be executed by the Nonemployee Director and the Company.
7.2.2    Vesting.  Each grant of Restricted Shares shall vest in full six (6) months after the date of grant.  Notwithstanding the preceding sentence, if prior to the date when the Restricted Shares would vest, the Director terminates service on the Board on account of death or Disability, the Restricted Shares shall become vested in full on the date of such termination of service.
7.2.3    Restrictions on Share Transferability.  The Board may impose such restrictions on any Restricted Shares, as it may deem advisable, including, but not limited to, restrictions related to applicable Federal securities laws, the requirements of any national securities exchange or system upon which Shares are then listed and/or traded, and/or under any blue sky or state securities laws.
7.2.4    Nontransferability of Unvested Restricted Shares.  No restricted shares granted under the Plan may be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated prior to their vesting pursuant to Section 7.2.2, other than by will, the laws of descent and distribution, or as permitted in Section 8.2.
SECTION 8     
MISCELLANEOUS

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8.1    Amendment or Termination of the Plan.  The Board, in its sole discretion, may amend, alter, modify or terminate the Plan, in whole or in part, at any time and for any reason.  However, only if and to the extent required to maintain the Plan’s qualification under Rule 16b-3 promulgated under the Exchange Act, any such amendment shall be subject to stockholder approval.  Neither the amendment, suspension, termination, nor scheduled expiration of the Plan shall, without the consent of the Nonemployee Director, alter or impair any rights or obligations under any Option or Restricted Shares theretofore granted.  No Option or Restricted Shares may be granted during any period of suspension nor after termination of the Plan.
8.2    Beneficiary Designation.  If permitted by the Board, a Nonemployee Director may name a beneficiary or beneficiaries to whom any benefit under the Plan is to be paid in case of the Nonemployee Director’s death before he or she receives any or all of such benefit.  Each such designation shall revoke all prior designations by the same Nonemployee Director and must be in a form and manner acceptable to the Board.  In the absence of any such designation, or if no beneficiary survives the Nonemployee Director, benefits remaining unpaid at the Nonemployee Director’s death shall be paid to the person or persons entitled to such benefits under the Nonemployee Director’s will or, if the Nonemployee Director shall fail to make testamentary disposition of such benefits, his or her legal representative.  Any transferee must furnish the Company with (a) written notice of his or her status as a transferee, and (b) evidence satisfactory to the Company to establish the validity of the transfer and compliance with any laws or regulations pertaining to said transfer.
8.3    Captions.  The captions contained herein and in the table of contents are provided as a matter of convenience only, and in no way define, limit, enlarge or describe the scope or intent of the Plan.  Such captions shall not affect in any way the construction of any provision of the Plan.
8.4    Applicable Law; Severability.  The Plan hereby created shall be construed, administered and governed in all respects in accordance with the laws of the State of California (with the exception of its conflict of laws provisions).  If any provision of this instrument shall be held invalid or unenforceable by a court of competent jurisdiction, the remaining provisions hereof shall continue to be fully effective.
8.5    No Effect Upon Other Compensation Plans.  The adoption of this Plan shall not affect any other stock option, compensation or incentive plans in effect for the Company or any Affiliate, and this Plan shall not preclude the Board from establishing any other forms of incentive or compensation for Nonemployee Directors.
8.6    No Effect on Service.  Nothing in the Plan shall interfere with or limit in any way the right of the Company to terminate any Nonemployee Director’s service on the Board at any time, with or without cause.  
8.7    Requirements of Law.  The granting of Options and the issuance of Shares (including Restricted Shares) under the Plan shall be subject to all applicable laws, rules, and regulations, and to such approvals by any governmental agencies or national securities exchanges as may be required.

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8.8    Rule 16b-3 Compliance.  Transactions under this Plan are intended to comply with all applicable conditions of Rule 16b-3 or its successors under the Exchange Act.  To the extent any provision of the Plan, an Option or any action by the Board fails to so comply, it shall be deemed null and void, to the extent permitted by law and deemed advisable by the Board.  Notwithstanding any contrary provision of the Plan, if the Board specifically determines that compliance with Rule 16b-3 no longer is required, all references in the Plan to Rule 16b-3 shall be of no force or effect.

8Exhibit

AKORN, INC. 2017 OMNIBUS INCENTIVE COMPENSATION PLAN
FORM OF RESTRICTED STOCK UNIT AWARD AGREEMENT
This Restricted Stock Unit Award Agreement (this “Award Agreement”) is made and effective as of [DATE] (the “Date of Grant”) between Akorn, Inc. (the “Company”) and [FIRST NAME — LAST NAME] (the “Participant”), pursuant and subject to the provisions of the Akorn, Inc. 2017 Omnibus Incentive Compensation Plan (the “Plan”).  Any capitalized term not otherwise defined herein shall have the meaning ascribed thereto in the Plan.  Reference is made to that certain Agreement and Plan of Merger (the “Merger Agreement”), dated as of April 24, 2017, among the Company, Fresenius Kabi AG, a German stock corporation, Quercus Acquisition, Inc., a Louisiana corporation and a wholly owned subsidiary of Parent (“Merger Sub”) and, solely for purposes of Article VIII thereof, Fresenius SE & Co. KGaA, a German partnership limited by shares.
1.Award of Restricted Stock Units.  Pursuant to the provisions of the Plan and this Award Agreement, the Company shall and hereby does award to the Participant on the Date of Grant [TOTAL NUMBER OF RESTRICTED STOCK UNITS GRANTED] restricted stock units (the “Restricted Stock Units”), subject to the terms and conditions of this Award Agreement and the Plan.
2.    Vesting Schedule.  The Restricted Stock Units are subject to forfeiture as of the Date of Grant and shall vest and cease to be forfeitable in installments on the applicable date for such installment as set forth below (each such date, a “Normal Vesting Date”), in each case subject to the Participant’s continued employment through the applicable Normal Vesting Date.  For purposes of this Award Agreement, except as otherwise provided in Section 19 or as otherwise determined by the Committee, the Participant’s employment with the Company shall be deemed to continue so long as the Participant is employed by, or is otherwise providing services as a director, officer or consultant to, the Company or any of its Subsidiaries or Affiliates.
	
		
	Normal Vesting Date
	Number of Restricted Stock Units

	[VEST DATE PERIOD1
	NUMBER OF UNITS PERIOD1]

	 
	 

	[VEST DATE PERIOD2
	NUMBER OF UNITS PERIOD2]

	 
	 

	[VEST DATE PERIOD3
	NUMBER OF UNITS PERIOD3]

	 
	 

	[VEST DATE PERIOD4
	NUMBER OF UNITS PERIOD4]

Subject to Section 3, any unvested Restricted Stock Units shall immediately and automatically terminate and be forfeited as of the date of the Participant’s termination of employment with the Company for any reason or as of the date of the Participant’s death or Disability, in each case prior to the applicable Normal Vesting Date set forth above.  For purposes of this Award Agreement, “Disability” means total and permanent disability as defined in Section 22(e)(3) of the Code.
3.    Change of Control.
(a)    In the event of a Change of Control, unless provision is made in connection with the Change of Control for (1) assumption of the Restricted Stock Units or (2) substitution for the Restricted Stock Units of new awards covering stock of a successor corporation or its “parent corporation” (as defined in Section 424(e) of the Code) or “subsidiary corporation” (as defined in Section 424(f) of the Code) with appropriate adjustments as to the number and kinds of shares underlying the Restricted Stock Units, all unvested Restricted Stock Units shall automatically vest as of immediately prior to such Change of Control and shall be settled in accordance with Section 5; provided that in the event of the consummation of the Merger (as defined in the Merger Agreement), all unvested Restricted Stock Units shall automatically be converted into an unvested award representing the opportunity to receive cash payments as described in Sections 2.03(c) and 2.04 of the Merger Agreement (the Restricted Stock Units as so converted, the “Converted Award”).
[**The bracketed language in Section 3(b) may be included upon the determination of the Compensation Committee.**]
(b)    In the event the Restricted Stock Units are assumed or substituted by the successor company or its Affiliate in connection with a Change of Control or converted into the Converted Award in each case as described in clause (a) of this Section 3, if the Participant’s employment is terminated without Cause or by the Participant for Good Reason [(a “Qualifying Termination”)] following the Change of Control, all unvested Restricted Stock Units (or the Converted Award, as applicable) shall automatically vest immediately prior to such termination and shall be settled in accordance with Section 5.  [**Notwithstanding Section 2, in the event a Qualifying Termination occurs prior to a Change of Control at the request of a third party who had indicated an intention or taken steps reasonably calculated to effect a Change of Control, the Restricted Stock Units shall cease vesting pursuant to their normal vesting schedule on the date of the Qualifying Termination but shall not lapse or be forfeited on such date.  Instead, the Restricted Stock Units shall remain outstanding during the 90-day period immediately following the date of such Qualifying Termination, and in the event a Change of Control involving such third party (or a party competing with such third party to effectuate a Change of Control) subsequently occurs during such 90-day period, the Restricted Stock Units (or the Converted Award, as applicable) shall become vested on the date of such Change of Control involving such third party (or a party competing with such third party to effectuate a Change of Control) as if the Qualifying Termination occurred immediately following, and on the same day as, the Change of Control.  In the event a Change of Control involving such third party (or a party competing with such third party to effectuate a Change of Control) does not subsequently occur during such 90-day period, the Restricted Stock Units shall immediately and automatically terminate and be forfeited as of the end of such 90-day period.]  For purposes of this Award Agreement:
(1)    “Cause” means the Participant’s (1) personal dishonesty, (2) misconduct, (3) breach of fiduciary duty, (4) incompetence, (5) intentional failure to perform stated obligations, (6) willful violation of any law, rule, regulation or final cease and desist order, or (7) any material breach of any provision of the Plan, this Award Agreement, or any employment agreement; and
(2)    “Good Reason” means, without the Participant’s prior written consent, [(i)] the Company’s requiring the Participant to be based at a location outside a 50-mile radius from the Participant’s job location or residence, except for travel that is reasonably necessary in connection with the Company’s business [**, or (ii) within the 90-day period prior to or the 12-month period immediately following the Change of Control, the occurrence of one or more of the following:
A.    a change in the Participant’s employment status or responsibilities with the Company which represents a material and adverse change from the Participant’s status or responsibilities, or the assignment to the Participant of any employment duties or responsibilities which are materially inconsistent with the Participant’s employment status or responsibilities, or any action by the Company that results in a material diminution in the Participant’s position, authority, duties or responsibilities (in either case without sole regard to any change in title or the Company’s status as a public or private entity);
B.    a reduction in the Participant’s base salary for employment with the Company to a level below that in effect at any time previously (except to the extent such reduction is not due to a Change of Control and is part of a comprehensive reduction in salary applicable to employees of the Company generally, so long as such reduction applicable to the Participant is comparable to the reduction applied to other employees of the Company at the same career level);
C.    the insolvency or the filing (by any party, including the Company) of a petition for bankruptcy of the Company, which petition is not dismissed within sixty days; or
D.    the failure of the Company to obtain an agreement, satisfactory to the Participant, from any successor company or assigns to assume or substitute and agree to maintain this Award Agreement;]
provided, however, that the Participant shall be treated as having terminated for Good Reason only if he or she provides the Company with a notice of termination within 90 days of the initial existence of [one of ]the condition[s] described above, following which the Company shall have 30 days from the receipt of the notice of termination to cure the event specified in the notice of termination and, if the Company fails to so cure the event, the Participant must terminate his or her employment not later than 30 days following the end of such cure period.
4.    Vesting Date.  The “Vesting Date” means the date that a Restricted Stock Unit (or the Converted Award, as applicable) is no longer subject to forfeiture and is vested in accordance with Section 2 or Section 3, as applicable.
5.    Settlement.  Each Restricted Stock Unit represents the right to receive one Share on the applicable Vesting Date.  The Participant shall have no right to settlement of any such Restricted Stock Units prior to the applicable Vesting Date.  Prior to payment of any vested Restricted Stock Unit, such Restricted Stock Unit shall represent an unsecured obligation of the Company, payable (if at all) only from the general assets of the Company.  Any Restricted Stock Units that vest in accordance with Section 2 or Section 3 (as applicable) shall be paid to the Participant in whole Shares, subject to the Participant satisfying any applicable related tax liabilities.  Subject to the provisions of Section 6, such vested Restricted Stock Units shall be paid in whole Shares (or in cash, in the case of the Converted Award) as soon as practicable after vesting, but in no event later than sixty days following the Vesting Date.  In no event shall the Participant be permitted, directly or indirectly, to specify the taxable year of the payment of any Restricted Stock Units (or the Converted Award, as applicable) payable under this Award Agreement.  The payment of Shares (or cash, in the case of the Converted Award) pursuant to this Award Agreement shall in all cases be paid at a time or in a manner that is exempt from, or complies with, Section 409A.
6.    Withholding.
(a)    The Participant shall be required to pay to the Company or any Affiliate the amount of any applicable withholding taxes in respect of the Restricted Stock Units and to take such other action as may be necessary in the opinion of the Committee or the Company to satisfy all obligations for the payment of such taxes.
(b)    Without limiting the generality of Section 6(a), subject to the Committee’s discretion, the Participant may satisfy, in whole or in part, the foregoing withholding liability by having the Company withhold from the number of Shares otherwise issuable pursuant to the vesting of the Restricted Stock Units a number of Shares having a Fair Market Value equal to such withholding liability (or cash having a value equal to such withholding liability, in the case of the Converted Award).
(c)    Notwithstanding any provision of this Award Agreement to the contrary, no certificate representing the Shares (or cash, in the case of the Converted Award) shall be issued to the Participant until the Participant satisfies all withholding and payment obligations payable upon vesting of the Restricted Stock Units (or the Converted Award, as applicable) which the Company determines must be withheld with respect to such Shares.
7.    Participant Acknowledgments.  By executing this Award Agreement, the Participant acknowledges and agrees as follows:
(a)    The Company is not providing the Participant with advice, warranties or representations regarding any of the legal or tax effects to the Participant with respect to this Award Agreement.
(b)    The Participant acknowledges that he or she is (1) familiar with the terms of the grant made to him or her under this Award Agreement and the Plan, (2) has been encouraged by the Company to discuss the grant and the Plan with his or her own legal and tax advisers, and (3) agrees to be bound by the terms of the grant and the Plan.
8.    Rights as Stockholder.  None of the Participant or holder or beneficiary of the Restricted Stock Units shall have any rights as a stockholder with respect to any Shares to be distributed under this Award Agreement until he or she has become the holder of such Shares, at which point the Participant shall have all the rights of a stockholder of the Company, including with respect to voting such Shares and receipt of dividends and distributions on such Shares.  In no event shall the Participant be entitled to receive dividends or dividend equivalents with respect to any Shares deliverable under this Award Agreement prior to the vesting and settlement of the Restricted Stock Units (or the Converted Award, as applicable).  **[In no event shall the Participant be entitled to receive dividends or dividend equivalents with respect to any Shares deliverable under this Award Agreement with respect to the 90-day period described in Section 3(b).]
9.    Transferability; Successors and Assigns.  During the Participant’s lifetime, prior to the applicable Vesting Date, no Restricted Stock Unit (or any rights and obligations related thereto) may be assigned, alienated, pledged, attached, sold or otherwise transferred or encumbered by the Participant otherwise than by will or by the laws of descent and distribution, and any such purported assignment, alienation, pledge, attachment, sale, transfer or encumbrance shall be void and unenforceable against the Company or any Affiliate; provided that, (a) the designation of a beneficiary shall not constitute an assignment, alienation, pledge, attachment, sale, transfer or encumbrance and (b) the Board or the Committee may permit further transferability, on a general or specific basis, and may impose conditions and limitations on any permitted transferability.  Notwithstanding the foregoing, in no event shall the Restricted Stock Units (or the Converted Award, as applicable) be transferred to a third party for value unless such transfer is specifically approved by the Committee.  All terms and conditions of the Plan and the Award Agreement shall be binding upon any permitted successors and assigns.
10.    Notices.  All notices, requests, demands and other communications hereunder shall be in writing and shall be deemed to have been duly given on the second business day following the date mailed by United States Mail, postage prepaid, to the parties or their assignees at the following addresses, or at such other address as shall be given in writing by either party to the other:
		
	Company:
	Human Resources Department

cc: Legal Department Akorn, Inc.  
1925 West Field Court Suite #300 
Lake Forest, Illinois 60045 
Participant:    [FIRST NAME — LAST NAME]
[ADDRESS LINE]
[CITY, STATE ZIP CODE]
11.    Choice of Law and Venue.  The Plan and this Award Agreement and all questions relating to its validity, interpretation, performance and enforcement shall be governed by and construed in accordance with the laws of the State of Illinois, without giving effect to the conflict of laws provisions thereof.  Any legal proceeding arising out of this Award Agreement shall be brought only in a state or Federal court of competent jurisdiction located in Chicago, Illinois.
12.    Amendment.  Except as otherwise set forth in the Plan, this Award Agreement may be amended or modified only by the written agreement of the parties hereto.
13.    Entire Agreement.  The Plan and this Award Agreement and the other documents delivered hereunder (if any) constitute the full and entire understanding and agreement between the parties with regard to the subject matter hereof, and supersedes all prior agreements, understandings, inducements or conditions, express or implied, oral or written, relating to the subject matter hereof, except as herein contained.  The express terms of the Plan and this Award Agreement control and supersede any course of performance or usage of trade inconsistent with any of the terms hereof.
14.    Attorneys’ Fees.  If any legal action is necessary to enforce the terms of this Award Agreement, the prevailing party shall be entitled to recover, in addition to other amounts to which the prevailing party may be entitled, actual attorneys’ fees and costs.
15.    Severability.  If any provision of this Award Agreement is or becomes or is deemed to be invalid, illegal or unenforceable in any jurisdiction or as to any Person, or would disqualify this Award Agreement under any law deemed applicable by the Committee, such provision shall be construed or deemed amended to conform to the applicable laws, or if it cannot be construed or deemed amended without, in the determination of the Committee, materially altering the intent of this Award Agreement, such provision shall be construed or deemed stricken as to such jurisdiction or Person and the remainder of this Award Agreement shall remain in full force and effect.
16.    Counterparts.  This Award Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original as against any party whose signature appears thereon, and all of which shall together constitute one and the same instrument.  Signatures by facsimile and other electronic means shall be valid and enforceable.
17.    Additional Conditions to Issuance of Shares.  The vesting of the Restricted Stock Units and the issuance and transfer of Shares shall be subject to compliance by the Company and the Participant with all applicable requirements of Federal and state securities laws and with all applicable requirements of any stock exchange on which the Company’s Shares may be listed.  No Shares shall be issued pursuant to this Award Agreement unless and until any then applicable requirements of Federal or state laws and regulatory agencies have been fully complied with to the satisfaction of the Company and its counsel.  The Participant understands that the Company is under no obligation to register the Shares with the Securities and Exchange Commission, any state securities commission or any stock exchange to effect such compliance.  If at any time the Company shall determine, in its sole discretion, that the listing, registration, qualification or rule compliance of the Shares upon any securities exchange or under any state or Federal law, the tax code and related regulations or the consent or approval of any governmental regulatory authority is necessary or desirable as a condition to the issuance of Shares to the Participant (or his or her estate) hereunder, such issuance shall not occur unless and until such listing, registration, qualification, rule compliance, consent or approval shall have been completed, effected or obtained free of any conditions not acceptable to the Company.  Where the Company determines that the delivery of the payment of any Shares will violate U.S. Federal securities laws or any other applicable securities or exchange control laws, the Company shall defer delivery until the earliest date on which the Company reasonably concludes, in its sole discretion, that the delivery of such Shares will no longer cause such violation.  The Company shall make all reasonable efforts to meet the requirements of any such Federal or state law or securities exchange and to obtain any such consent or approval of any such governmental authority or securities exchange.
18.    Clawback Policy.  Notwithstanding any provision of the Plan or this Award Agreement to the contrary, outstanding Restricted Stock Units may be cancelled, and the Company may require the Participant to return Shares (or the Fair Market Value of such Shares as of the date on which such Shares were delivered to the Participant) and any other amount required by the Dodd-Frank Wall Street Reform and Consumer Protection Act or other applicable law, or the Company’s Clawback Policy or any other applicable policy of the Company or its Subsidiaries, including as may be adopted following the date hereof.
19.    Section 409A. 
(a)    It is intended that the Restricted Stock Units granted pursuant to this Award Agreement comply with, or are exempt from, Section 409A of the Code, and all provisions of the Award Agreement shall be construed and interpreted in a manner consistent with the requirements for avoiding taxes or penalties under Section 409A of the Code.
(b)    If, at the time of the Participant’s separation from service (within the meaning of Section 409A of the Code), (1) the Participant shall be a specified employee (within the meaning of Section 409A of the Code and using the identification methodology selected by the Company from time to time) and (2) the Company makes a good faith determination that an amount payable pursuant to this Award Agreement constitutes deferred compensation (within the meaning of Section 409A of the Code) the payment of which is required to be delayed pursuant to the six-month delay rule set forth in Section 409A of the Code in order to avoid taxes or penalties under Section 409A of the Code, then the Company shall not pay such amount on the otherwise scheduled payment date but shall instead pay it on the first business day after such six-month period.  Such amount shall be paid without interest, unless otherwise determined by the Committee, in its sole discretion.
(c)    A termination of employment shall not be deemed to have occurred for purposes of any provision of this Award Agreement providing for the payment of any amount upon or following a termination of employment that is nonqualified deferred compensation subject to Section 409A of the Code unless such termination is also a “separation from service” within the meaning of Section 409A of the Code and, for purposes of this Award Agreement, all references to “termination of employment” and correlative phrases shall be construed to require a “separation from service” within the meaning of Section 409A of the Code.
(d)    Notwithstanding any provision of the Plan or this Award Agreement to the contrary, in light of the uncertainty with respect to the proper application of Section 409A of the Code, the Company reserves the right to make amendments to this Award Agreement as the Company deems necessary or desirable to avoid the imposition of taxes or penalties under Section 409A of the Code.  In any case, the Participant shall be solely responsible and liable for the satisfaction of all taxes and penalties that may be imposed on the Participant or for the Participant’s account in connection with this Award Agreement (including any taxes and penalties under Section 409A of the Code), and neither the Company nor any of its Affiliates shall have any obligation to indemnify or otherwise hold the Participant harmless from any or all of such taxes or penalties.
(e)    Each payment payable under this Award Agreement is intended to constitute a separate payment for purposes of Section 1.409A-2(b)(2) of the Treasury Regulations.
ACCEPTANCE AND ACKNOWLEDGMENT
I, [FIRST NAME — LAST NAME] a resident of the State of [STATE], accept the Restricted Stock Unit Award awarded described in this Award Agreement and in the Plan, and acknowledge receipt of a copy of the Plan and this Award Agreement.  I further acknowledge that I have read the Plan and Award Agreement carefully, I fully understand their contents, and I agree to be bound by the same.

[[NYCORP:3641921v12:3278W: 05/01/2017--04:44 PM]]

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