Document:

EX-4.1

 Exhibit 4.1 

CHASE ISSUANCE TRUST 
 as
Issuing Entity 
 CLASS A(2020-1) TERMS DOCUMENT 

dated as of February 18, 2020 

to 
 SECOND AMENDED AND
RESTATED 
 CHASESERIES INDENTURE SUPPLEMENT 

dated as of January 20, 2016 

to 
 FOURTH AMENDED AND
RESTATED 
 INDENTURE 

dated as of January 20, 2016 

WELLS FARGO BANK, NATIONAL ASSOCIATION 

as Indenture Trustee and Collateral Agent 

 TABLE OF CONTENTS 
  

 
  

							
	 	  	 	  	PAGE	 
	
	ARTICLE I	  

	
	Definitions and Other Provisions of General Application	  

			
	 Section 1.01
	  	Definitions	  	 	1	 
	 Section 1.02
	  	Governing Law	  	 	3	 
	 Section 1.03
	  	Counterparts	  	 	3	 
	 Section 1.04
	  	Ratification of Indenture and Indenture Supplement	  	 	3	 
	
	ARTICLE II	  

	
	The Class A(2020-1) Notes	  

			
	 Section 2.01
	  	Creation and Designation	  	 	5	 
	 Section 2.02
	  	Specification of Required Subordinated Amount and Other Terms	  	 	5	 
	 Section 2.03
	  	Interest Payment	  	 	5	 
	 Section 2.04
	  	Payments of Interest and Principal	  	 	6	 
	 Section 2.05
	  	Form of Delivery of Class A(2020-1) Notes; Depository; Denominations	  	 	6	 
	 Section 2.06
	  	Delivery and Payment for the Class A(2020-1) Notes	  	 	6	 
	 Section 2.07
	  	Supplemental Indenture	  	 	7	 
	 Section 2.08
	  	No Ratings Confirmation Required for Class A(2020-1) Notes	  	 	7	 

 THIS CLASS A(2020-1) TERMS DOCUMENT (this
“Terms Document”), among the CHASE ISSUANCE TRUST, a statutory trust created under the laws of the State of Delaware (the “Issuing Entity”), having its principal office at c/o Wilmington Trust Company, 1100 North Market Street,
Wilmington, Delaware 19890-1600, and WELLS FARGO BANK, NATIONAL ASSOCIATION, a national banking association, as indenture trustee (the “Indenture Trustee”) and as collateral agent (the “Collateral Agent”), is made and entered
into as of February 18, 2020. 
 Pursuant to this Terms Document, the Issuing Entity and the Indenture Trustee shall create a new
Tranche of CHASEseries Class A Notes and shall specify the principal terms thereof. 
 ARTICLE I 

Definitions and Other Provisions of General Application 

Section 1.01 Definitions. For all purposes of this Terms Document, except as otherwise expressly provided or unless the context
otherwise requires: 
 (1) the terms defined in this Article have the meanings assigned to them in this Article, and include the plural as
well as the singular; 
 (2) all other terms used herein which are defined in the Indenture Supplement, the Indenture or the Asset Pool
Supplement, either directly or by reference therein, have the meanings assigned to them therein; 
 (3) as used in this Terms Document and
in any certificate or other document made or delivered pursuant hereto or thereto, accounting terms not defined in this Terms Document or in any such certificate or other document, and accounting terms partly defined in this Terms Document or in any
such certificate or other document to the extent not defined, shall have the respective meanings given to them under GAAP. To the extent that the definitions of accounting terms in this Terms Document or in any such certificate or other document are
inconsistent with the meanings of such terms under GAAP, the definitions contained in this Terms Document or in any such certificate or other document shall control; 

(4) the words “hereof,” “herein,” “hereunder” and words of similar import when used in this Terms Document shall
refer to this Terms Document as a whole and not to any particular provision of this Terms Document; references to any subsection, Section, clause, Schedule or Exhibit are references to subsections, Sections, clauses, Schedules and Exhibits in or to
this Terms Document unless otherwise specified; the term “including” means “including without limitation”; references to any law or regulation refer to that law or regulation as amended from time to time and include any successor
law or regulation; references to any Person include that Person’s successors and assigns; and references to any agreement refer to such agreement, as amended, supplemented or otherwise modified from time to time; 

(5) in the event that any term or provision contained herein shall conflict with or be inconsistent with any term or provision contained in
the Indenture Supplement, the Indenture or the Asset Pool Supplement, the terms and provisions of this Terms Document shall be controlling; and 

 (6) each capitalized term defined herein shall relate only to the Class A(2020-1) Notes and no other Tranche of CHASEseries Notes issued by the Issuing Entity. 

“Asset Pool Supplement” means the Third Amended and Restated Asset Pool One Supplement to the Indenture, dated as of
January 20, 2016, as amended, by and among the Issuing Entity, the Indenture Trustee and the Collateral Agent. 

“Beneficiary” means Chase Card Funding LLC, in its capacity as beneficial owner of the Issuing Entity. 

“Class A(2020-1) Adverse Event” means the occurrence of any of the
following: (a) an Early Amortization Event with respect to the Class A(2020-1) Notes, (b) an Event of Default and acceleration of the Class A(2020-1)
Notes, (c) the Class A Usage of the Class B Required Subordinated Amount for the Class A(2020-1) Notes becomes greater than zero or (d) the Class A Usage of the Class C
Required Subordinated Amount for the Class A(2020-1) Notes becomes greater than zero. 

“Class A(2020-1) Note” means any Note, substantially in the form
set forth in Exhibit A-1 to the Indenture Supplement, designated therein as a Class A(2020-1) Note and duly executed and authenticated in accordance with the
Indenture. 
 “Class A(2020-1) Noteholder” means a Person in
whose name a Class A(2020-1) Note is registered in the Note Register. 

“Class A(2020-1) Termination Date” means the earliest to occur of
(a) the Principal Payment Date on which the Outstanding Dollar Principal Amount of the Class A(2020-1) Notes is paid in full, (b) the Legal Maturity Date and (c) the date on which the
Indenture is discharged and satisfied pursuant to Article V thereof. 
 “Class A Required Subordinated Amount of
Class B Notes” is defined in Section 2.02(a). 
 “Class A Required Subordinated
Amount of Class C Notes” is defined in Section 2.02(b). 
 “Controlled Accumulation
Amount” means $83,333,333.34; provided, however, if the Accumulation Period Length is determined to be less than twelve months pursuant to Section 3.12(b)(ii) of the Indenture Supplement, the Controlled Accumulation Amount for any Note
Transfer Date with respect to the Class A(2020-1) Notes will be the amount specified in the definition of “Controlled Accumulation Amount” in the Indenture Supplement. 

“Indenture” means the Fourth Amended and Restated Indenture, dated as of January 20, 2016, as amended, between the
Issuing Entity and the Indenture Trustee. 
 “Indenture Supplement” means the Second Amended and Restated CHASEseries
Indenture Supplement, dated as of January 20, 2016, among the Issuing Entity, the Indenture Trustee and the Collateral Agent. 

  
 2 

 “Initial Dollar Principal Amount” means $1,000,000,000. 

“Interest Payment Date” means March 16, 2020 and the 15th day of each month thereafter, or if such 15th day is not a
Business Day, the next succeeding Business Day. 
 “Interest Period” means, with respect to any Interest Payment Date, the
period from and including the previous Interest Payment Date (or in the case of the initial Interest Payment Date, from and including the Issuance Date) to but excluding such Interest Payment Date. 

“Issuance Date” means February 18, 2020. 

“Legal Maturity Date” means January 15, 2025. 

“Note Interest Rate” means a rate per annum equal to 1.53%. 

“Paying Agent” means Wells Fargo Bank, National Association. 

“Predecessor Note” means, with respect to any particular Note, every previous Note evidencing all or a portion of the same
debt as that evidenced by such particular Note; and, for the purpose of this definition, any Note authenticated and delivered under Section 3.06 of the Indenture in lieu of a mutilated, lost, destroyed or stolen Note shall be deemed to evidence
the same debt as the mutilated, lost, destroyed or stolen Note. 
 “Record Date” means, for any Note Transfer Date, the
last Business Day of the preceding Monthly Period. 
 “Scheduled Principal Payment Date” means January 17, 2023. 

“Stated Principal Amount” means $1,000,000,000. 

Section 1.02 Governing Law. THIS TERMS DOCUMENT WILL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF
DELAWARE WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS. 

Section 1.03 Counterparts. This Terms Document may be executed in any number of counterparts, each of which so executed will be
deemed to be an original, but all such counterparts will together constitute but one and the same instrument. 
 Section 1.04
Ratification of Indenture and Indenture Supplement. As supplemented by this Terms Document, each of the Indenture, the Asset Pool Supplement and the Indenture Supplement is in all respects ratified and confirmed and the Indenture as so
supplemented by the Asset Pool Supplement and the Indenture Supplement as so supplemented by this Terms Document shall be read, taken and construed as one and the same instrument. 

  
 3 

 [END OF ARTICLE I] 

  
 4 

 ARTICLE II 

The Class A(2020-1) Notes 

Section 2.01 Creation and Designation. There is hereby created a Tranche of CHASEseries Class A Notes to be issued pursuant
to the Indenture and the Indenture Supplement to be known as the “CHASEseries Class A(2020-1) Notes.” 

Section 2.02 Specification of Required Subordinated Amount and Other Terms. 

(a) For the Class A(2020-1) Notes for any date of determination, the Class A Required
Subordinated Amount of Class B Notes will be an amount equal to 8.13953% of (i) prior to the occurrence of a Class A(2020-1) Adverse Event, the Adjusted Outstanding Dollar Principal Amount of
the Class A(2020-1) Notes on such date of determination or (ii) on and after the date on which a Class A(2020-1) Adverse Event shall have occurred, the
greater of (1) the Adjusted Outstanding Dollar Principal Amount of the Class A(2020-1) Notes on such date of determination and (2) the Adjusted Outstanding Dollar Principal Amount of the Class A(2020-1) Notes as of the close of business on the day immediately preceding the date on which such Class A(2020-1) Adverse Event shall have occurred. 

(b) For the Class A(2020-1) Notes for any date of determination, the Class A Required
Subordinated Amount of Class C Notes will be an amount equal to 8.13953% of (i) prior to the occurrence of a Class A(2020-1) Adverse Event, the Adjusted Outstanding Dollar Principal Amount of
the Class A(2020-1) Notes on such date or (ii) on and after the date on which a Class A(2020-1) Adverse Event shall have occurred, the greater of
(1) the Adjusted Outstanding Dollar Principal Amount of the Class A(2020-1) Notes on such date of determination and (2) Adjusted Outstanding Dollar Principal Amount of the Class A(2020-1) Notes as of the close of business on the day immediately preceding the date on which such Class A(2020-1) Adverse Event shall have occurred. 

(c) The Issuing Entity may change the percentages or the formulas set forth in either clause (a) or (b) above without the consent of any
Noteholder so long as the Issuing Entity has (i) received written confirmation from each Note Rating Agency that has rated any Outstanding Notes that the change in either of such percentages or formulas, as applicable, will not result in a
Ratings Effect with respect to any Outstanding Notes and (ii) delivered to the Indenture Trustee and the Note Rating Agencies a Master Trust Tax Opinion and an Issuing Entity Tax Opinion. 

Section 2.03 Interest Payment. 

(a) For each Interest Payment Date, the amount of interest due with respect to the
Class A(2020-1) Notes shall be an amount equal to one-twelfth of the product of (i) the Note Interest Rate times, (ii) the Outstanding Dollar Principal
Amount of the Class A(2020-1) Notes determined as of the close of business on the Interest Payment Date preceding the related Note Transfer Date for the
Class A(2020-1) Notes; provided, however, that for the first Interest Payment Date, the amount of interest due with respect to the Class A(2020-1) Notes shall
be 

  
 5 

 
$1,147,500.00. Interest on the Class A(2020-1) Notes will be calculated on the basis of a 360-day year
consisting of twelve 30-day months. 
 (b) Pursuant to Section 3.03 of the Indenture
Supplement, on each Note Transfer Date with respect to the Class A(2020-1) Notes, the Indenture Trustee shall deposit into the Class A(2020-1) Interest Funding
Sub-Account the portion of CHASEseries Available Finance Charge Collections allocable to the Class A(2020-1) Notes. 

Section 2.04 Payments of Interest and Principal. 

(a) Any installment of interest or principal payable on any Class A(2020-1) Note which is
punctually paid or duly provided for by the Issuing Entity and the Indenture Trustee on the applicable Interest Payment Date or Principal Payment Date shall be paid by the Paying Agent to the Person in whose name such
Class A(2020-1) Note (or one or more Predecessor Notes) is registered on the Record Date, by wire transfer of immediately available funds to such Person’s account as has been designated by written
instructions received by the Paying Agent from such Person not later than the close of business on the third Business Day preceding the date of payment or, if no such account has been so designated, by check mailed first-class, postage prepaid to
such Person’s address as it appears on the Note Register on such Record Date, except that with respect to Notes registered on the Record Date in the name of the nominee of Cede & Co., payment shall be made by wire transfer in
immediately available funds to the account designated by such nominee. 
 (b) The right of the
Class A(2020-1) Noteholders to receive payments from the Issuing Entity will terminate on the first Business Day following the Class A(2020-1) Termination
Date. 
 Section 2.05 Form of Delivery of Class A(2020-1) Notes;
Depository; Denominations. 
 (a) The Class A(2020-1) Notes shall be delivered in the form
of a global Registered Note as provided in Sections 2.02 and 3.01(i) of the Indenture, respectively. 
 (b) The Depository for the Class A(2020-1) Notes shall be The Depository Trust Company, and the Class A(2020-1) Notes shall initially be registered in the name of Cede & Co., its
nominee. 
 (c) The Class A(2020-1) Notes will be issued in minimum denominations of $100,000
and integral multiples of $1,000 in excess of $100,000. 
 Section 2.06 Delivery and Payment for the
Class A(2020-1) Notes. 
 The Issuing Entity shall execute and deliver
the Class A(2020-1) Notes to the Indenture Trustee for authentication, and the Indenture Trustee shall deliver the Class A(2020-1) Notes when authenticated,
each in accordance with Section 3.03 of the Indenture. 

  
 6 

 Section 2.07 Supplemental Indenture. 

The Issuing Entity may enter into a supplemental indenture with respect to the Class A(2020-1)
Notes as provided in Section 9.01 of the Indenture; provided, however, that any supplemental indenture which provides for an additional or alternative form of credit enhancement for the
Class A(2020-1) Notes shall, in addition to the requirements set forth in Section 9.01 of the Indenture, require confirmation from the Note Rating Agencies that have rated any Outstanding Notes of
the CHASEseries that such change in credit enhancement will not result in a Ratings Effect with respect to any Outstanding Notes of the CHASEseries. 

Section 2.08 No Ratings Confirmation Required for Class A(2020-1)
Notes. 
 Notwithstanding Section 3.10(a)(iv) of the Indenture, the Issuing Entity will not be required to obtain written
confirmation from each Note Rating Agency that an issuance of a new Tranche of Notes will not have a Ratings Effect on the Class A(2020-1) Notes. 

[END OF ARTICLE II] 

  
 7 

 IN WITNESS WHEREOF, the parties hereto have caused this Terms Document to be duly executed,
all as of the day and year first above written. 
  

			
	CHASE ISSUANCE TRUST
	By:	 	JPMORGAN CHASE BANK,
		 	NATIONAL ASSOCIATION, as Administrator

 
			
		
	By:	 	  

		 	Name: Maria Laura Sarcone
		 	Title:   Executive Director
	
	WELLS FARGO BANK, NATIONAL ASSOCIATION, as Indenture Trustee and Collateral Agent
		
	By:	 	  

		 	Name:
		 	Title:

 Chase Issuance Trust 

CHASEseries Class A(2020-1) Terms DocumentExhibit 10.1

 

Execution
Version

 

This SECOND AMENDMENT
TO STANDSTILL AGREEMENT AND THIRD AMENDMENT TO LOAN AGREEMENT (this “Amendment”) is dated as of February 12,
2020, by and among AKORN, INC., a Louisiana corporation (the “Company”), the other Loan Parties under the Loan
Agreement (as defined below), an ad hoc group of Lenders (as defined below) identified on Exhibit A hereto, which constitute
 “Required Lenders” under the Loan Agreement (collectively, the “Ad Hoc Group”), and the Administrative
Agent (as defined below). Capitalized terms used herein and not otherwise defined shall have the meanings ascribed thereto in the
Loan Agreement or the Standstill Agreement (each, as defined below).

 

WHEREAS, reference
is hereby made to that certain Loan Agreement dated as of April 17, 2014 (as the same shall have been amended, supplemented or
otherwise modified from time to time, the “Loan Agreement”), by and among the Company, the other Loan Parties,
the financial institutions from time to time parties thereto as “Lenders” (collectively, the “Lenders”
and each, a “Lender”) and JPMorgan Chase Bank, N.A., as administrative agent (the “Administrative Agent”),
pursuant to which, among other things, the Lenders have made certain loans, advances, and other financial accommodations to the
Company;

 

WHEREAS, reference
is hereby made to: (a) that certain Standstill Agreement and First Amendment to Loan Agreement dated as of May 6, 2019 (the “Standstill
Agreement”), by and among the Company, the other Loan Parties, the Administrative Agent, the Ad Hoc Group, certain other
Lenders (collectively, with the Ad Hoc Group, the “Standstill Lenders”), as amended by (b) that certain First
Amendment to Standstill Agreement and Second Amendment to Loan Agreement Dated as of December 13, 2019, by and among the Company,
the other Loan Parties, the Administrative Agent and the Standstill Lenders, pursuant to which, among other things: (a) the Standstill
Lenders agreed to standstill from exercising certain remedies under the Loan Agreement in connection with the Specific Covenants
and Specific Matters (each, as defined in the Standstill Agreement); and (b) the Company, the other Loan Parties, and the Standstill
Lenders, amended the Loan Agreement as set forth therein;

 

WHEREAS, Section 13(a)
of the Standstill Agreement and Section 9.02 of the Loan Agreement permit amendment of the Standstill Agreement by the Company
with consent of Required Lenders; and

 

WHEREAS, the Company
and the Lenders party hereto (constituting Required Lenders) agree to the amendments to the Standstill Agreement as set forth herein.

 

NOW, THEREFORE, in
consideration of the premises and of the mutual covenants herein contained and for other valuable considerations, the parties hereto
agree as follows:

 

Section 1.                Definitions.
Each capitalized term used herein and not otherwise defined in this Amendment shall be defined in accordance with the Loan
Agreement and Standstill Agreement, as applicable.

 

Section 2.                Amendments
to the Standstill Agreement. The Standstill Agreement (including the schedules and exhibits thereto) is hereby amended to
delete the stricken text (indicated textually in the same manner as the following example: stricken
text) and to add the double-underlined text (indicated textually in the same manner as the following example: underlined
text) as set forth in the marked blacklined copy of the Standstill Agreement attached as Annex I hereto (which
shall be the Standstill Agreement). Said Annex I has been blacklined to show all changes from the Standstill Agreement as in
effect immediately prior to the date hereof, it being agreed that, by virtue of this Amendment upon the effectiveness hereof,
any amendments or other modifications to the Standstill Agreement prior to the date hereof that are not reflected in said
Annex I shall cease to be in effect or, as the case may be, shall be modified as set forth in said Annex I, and Annex I shall
for all purposes be deemed to constitute the Standstill Agreement.

 

     

     

    

 

Section 3.               
Effectiveness. This Amendment shall be effective on the date (the “Amendment Effective Date”)
on which:

 

3.1             
Delivery of Agreement. This Amendment, duly authorized and executed by the Company, the Administrative Agent and
the Standstill Lenders (constituting the Required Lenders at such time), shall have been delivered to each of the Company, the
Administrative Agent, and the Standstill Lenders;

 

3.2             
No Default. Except for any Default or Event of Default with respect to the Specified Matters, both immediately before
and after giving effect to this Amendment, no Default or Event of Default would then exist or would result therefrom;

 

3.3             
Representations and Warranties. Except with respect to the Specified Matters, all representations and warranties
of the Company and the other Loan Parties set forth herein, in the Standstill Agreement, in the Loan Agreement, and in any other
Loan Document shall be true and correct in all material respects (or, with respect to those representations and warranties expressly
limited by their terms by materiality or material adverse effect qualifications, in all respects) as of the Amendment Effective
Date as if made on such date (except to extent that such representations and warranties expressly relate to an earlier date, in
which case they shall be true and correct in all material respects as of such date);

 

3.4             
No Material Adverse Effect. Both immediately before and after giving effect to this Amendment, no Material Adverse
Effect shall have occurred and be continuing or would result therefrom, excluding a Material Adverse Effect (if any) relating to
any of the Specified Matters;

 

3.5             
Closing Certificates. The Administrative Agent shall have received a certificate, dated as of the date hereof, of
a duly authorized officer of the Company, to the effect that, at and as of the Amendment Effective Date, both before and after
giving effect to this Amendment, (x) the conditions specified in this Section 3 have been satisfied or waived and (y) all Material
Subsidiaries that are Domestic Subsidiaries are Loan Parties as of the Amendment Effective Date (it being understood and agreed,
that the Administrative Agent may conclusively rely on such certificates as evidence of such satisfaction of the conditions specified
in this Section 3);

 

3.6              Fees
and Expenses. The Company shall (i) pay or reimburse all reasonable and documented fees and expenses for Gibson Dunn, as
legal advisor to the Ad Hoc Group, and Greenhill, as financial advisor to the Ad Hoc Group, on the terms set forth in the
Standstill Agreement to the extent invoiced at least one (1) Business Day prior to the Amendment Effective Date and (ii) pay
or reimburse all reasonable and documented out-of-pocket fees and expenses of the Administrative Agent in connection with
this Amendment and the other Loan Documents (including reasonable out-of-pocket fees, costs, and expenses of outside counsel
for the Administrative Agent) to the extent invoiced at least one (1) Business Day prior to the Amendment Effective Date;

 

    2

     

    

 

For the avoidance of
doubt, the Administrative Agent is hereby authorized to and shall post this Agreement to all Public-Side Lenders and Private-Side
Lenders on the Amendment Effective Date (or as soon as practicable thereafter).

 

Section 4.               
Entire Agreement. This Amendment, the Standstill Agreement, the Loan Agreement, and the other Loan Documents constitute
the entire agreement among the parties with respect to the subject matter hereof and thereof and supersede all other prior agreements
and understandings, both written and verbal, among the parties or any of them with respect to the subject matter hereof.

 

Section 5.               
Governing Law; Jurisdiction; Consent to Service of Process.

 

5.1             
THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO
CONFLICT OF LAW PRINCIPLES THAT WOULD RESULT IN THE APPLICATION OF ANY LAWS OTHER THAN THE LAWS OF THE STATE OF NEW YORK.

 

5.2             
Each party hereto hereby irrevocably and unconditionally submits, for itself and its property, to the exclusive jurisdiction
of the Supreme Court of the State of New York sitting in New York County and of the United States District Court of the Southern
District of New York, and any appellate court from any thereof, in any action or proceeding arising out of or relating to this
Amendment, or for recognition or enforcement of any judgment, and each of the parties hereto hereby irrevocably and unconditionally
agrees that all claims in respect of any such action or proceeding may be heard and determined in such New York State or, to the
extent permitted by law, in such Federal court. Each of the parties hereto agrees that a final judgment in any such action or proceeding
shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law.
Nothing in any Loan Document shall affect any right that the Administrative Agent, any Issuing Bank or any Lender may otherwise
have to bring any action or proceeding relating to any Loan Document against the Company or its properties in the courts of any
jurisdiction.

 

5.3             
Each party hereto hereby irrevocably and unconditionally waives, to the fullest extent it may legally and effectively do
so, any objection that it may now or hereafter have to the laying of venue of any suit, action or proceeding arising out of or
relating to any Loan Document in any court referred to in paragraph 5.2 of this Section 5. Each of the parties hereto hereby irrevocably
waives, to the fullest extent permitted by law, the defense of an inconvenient forum to the maintenance of such action or proceeding
in any such court.

 

5.4             
Each party to this Amendment irrevocably consents to service of process in the manner provided for notices in Section 16(r)
of the Standstill Agreement. Nothing in any Loan Document will affect the right of any party to this Amendment to serve process
in any other manner permitted by law.

 

    3

     

    

 

Section 6.               
WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT
MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AMENDMENT OR THE
TRANSACTIONS CONTEMPLATED HEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO
REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT,
IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE
BEEN INDUCED TO ENTER INTO THIS AMENDMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 6.

 

Section 7.               
Severability. Any term or provision of this Amendment which is invalid or unenforceable in any jurisdiction shall,
as to that jurisdiction, be ineffective to the extent of such invalidity or unenforceability without rendering invalid or unenforceable
the remaining terms and provisions of this Amendment or affecting the validity or enforceability of any of the terms or provisions
of this Amendment in any other jurisdiction. If any provision of this Amendment is so broad as to be unenforceable, the provision
shall be interpreted to be only so broad as would be enforceable.

 

Section 8.               
Loan Document. This Amendment constitutes a “Loan Document” for all purposes of the Standstill Agreement,
the Loan Agreement, and the other Loan Documents.

 

Section 9.               
Reaffirmation. Each of the undersigned Loan Parties acknowledges (i) all of its obligations under the Standstill
Agreement, the Loan Agreement, and the other Loan Documents to which it is a party are hereby reaffirmed and remain in full force
and effect on a continuous basis and (ii) the execution of this Amendment shall not operate as a waiver of any right, power or
remedy of the Administrative Agent, the Standstill Lenders, or the other Lenders, constitute a waiver of any provision of any of
the Loan Documents, or serve to effect a novation of the Loan Document Obligations.

 

Section 10.           
Lender Representations and Warranties. Each of the undersigned Lenders hereby represents and warrants that the representations
and warranties and acknowledgements set forth herein and in the Standstill Agreement (as amended hereby) are true and correct as
of the Amendment Effective Date.

 

Section 11.           
Counterparts. This Amendment may be executed in any number of counterparts and by different parties hereto on separate
counterparts, each of which when so executed and delivered shall be deemed to be an original, but all of which when taken together
shall constitute a single instrument. Delivery of an executed counterpart of a signature page of this Amendment by facsimile or
any other electronic transmission shall be effective as delivery of a manually executed counterpart hereof.

 

Section 12.           
Headings. The headings of this Amendment are for purposes of reference only and shall not limit or otherwise affect
the meaning hereof.

 

    4

     

    

 

Section 13.           
Effect of Amendment. Each reference that is made in the Standstill Agreement or the Loan Agreement or any other Loan Document
to the Standstill Agreement or the Loan Agreement shall hereafter be construed as a reference to the Standstill Agreement and/or
Loan Agreement, as amended hereby. Except as herein otherwise specifically provided, all provisions of the Standstill Agreement
and the Loan Agreement shall remain in full force and effect and be unaffected hereby and this Amendment will not by implication
or otherwise alter, modify, amend or in any way affect any of the terms, conditions, obligations, covenants or agreements contained
in the Standstill Agreement or the Loan Agreement or any other provision of the Standstill Agreement, the Loan Agreement, or any
other Loan Document, all of which are ratified and affirmed in all respects and will continue in full force and effect. For the
avoidance of doubt, on and after the Amendment Effective Date, this Amendment shall for all purposes constitute a Loan Document.

 

Section 14.           Direction
to the Administrative Agent; Indemnity. Each Lender party hereto hereby consents, authorizes and directs the Administrative
Agent to execute and deliver this Amendment and to take the actions contemplated herein. Each Standstill Party confirms and agrees
that (i) the Administrative Agent is only entering into this Amendment at the direction of the Required Lenders, (ii) subject
to the terms of the Loan Agreement and the other Loan Documents (including this Amendment), any action or inaction taken hereunder
by the Administrative Agent shall be at the express direction of the Required Lenders (including, without limitation, any determination
that a Default, Event of Default, and/or Standstill Event of Default has occurred and/or that the Standstill Period has ended)
and (iii) the indemnification provisions set forth in the Loan Agreement and the other Loan Documents (including, without limitation,
the indemnification provisions set forth in Sections 9.03(b) and 9.03(c) of the Loan Agreement) shall apply to actions taken by
the Administrative Agent in connection with this Amendment.

 

[Signature Pages to
Follow]

 

    5

     

    

 

IN WITNESS WHEREOF,
this Amendment has been executed by the parties hereto as of the date first written above.

 

	 	THE COMPANY:
	 	 	 
	 	AKORN, INC.
	 	 	 
	 	 By	/s/ Duane Portwood
	 	 	Name:	Duane Portwood
	 	 	Title:	Chief Financial Officer
	 	 	 
	 	OTHER LOAN PARTIES:
	 	 	 
	 	ADVANCED VISION RESEARCH, INC.
	 	 	 
	 	By	/s/ Joseph Bonaccorsi
	 	 	Name:	Joseph Bonaccorsi
	 	 	Title:	Secretary
	 	 	 
	 	AKORN (NEW JERSEY), INC.
	 	 	 
	 	By	/s/ Joseph Bonaccorsi
	 	 	Name:	Joseph Bonaccorsi
	 	 	Title:	Secretary
	 	 	 
	 	AKORN ANIMAL HEALTH, INC.
	 	 	 
	 	By	/s/ Joseph Bonaccorsi
	 	 	Name:	Joseph Bonaccorsi
	 	 	Title:	Secretary
	 	 	 
	 	AKORN OPHTHALMICS, INC.
	 	 	 
	 	 By	/s/ Joseph Bonaccorsi
	 	 	Name:	Joseph Bonaccorsi
	 	 	Title:	Secretary
	 	 	 
	 	AKORN SALES, INC.
	 	 	 
	 	 By	/s/ Joseph Bonaccorsi
	 	 	Name:	Joseph Bonaccorsi
	 	 	Title:	Secretary

  

[SIGNATURE PAGE TO AMENDMENT TO STANDSTILL AGREEMENT]

 

     

     

    

 

	 	INSPIRE PHARMACEUTICALS, INC.
	 	 	 
	 	By	/s/ Joseph Bonaccorsi
	 	 	Name:	Joseph Bonaccorsi
	 	 	Title:	Secretary
	 	 	 
	 	OAK PHARMACEUTICALS, INC.
	 	 	 
	 	By	/s/ Joseph Bonaccorsi
	 	 	Name:	Joseph Bonaccorsi
	 	 	Title:	Secretary
	 	 	 
	 	HI-TECH PHARMACAL CO., INC.
	 	 	 
	 	By	/s/ Joseph Bonaccorsi
	 	 	Name:	Joseph Bonaccorsi
	 	 	Title:	Secretary
	 	 	 
	 	10 EDISON STREET LLC
	 	 	 
	 	By	/s/ Joseph Bonaccorsi
	 	 	Name:	Joseph Bonaccorsi
	 	 	Title:	Secretary of Hi-Tech Pharmacal Co., Inc. its member
	 	 	 
	 	13 EDISON STREET LLC
	 	 	 
	 	By	/s/ Joseph Bonaccorsi
	 	 	Name:	Joseph Bonaccorsi
	 	 	Title:	Secretary of Hi-Tech Pharmacal Co., Inc. its member
	 	 	 
	 	VPI HOLDINGS CORP.
	 	 	 
	 	By	/s/ Joseph Bonaccorsi
	 	 	Name:	Joseph Bonaccorsi
	 	 	Title:	Secretary
	 	 	 
	 	VPI HOLDINGS SUB, LLC
	 	 	 
	 	By	/s/ Joseph Bonaccorsi
	 	 	Name:	Joseph Bonaccorsi
	 	 	Title:	Secretary

 

[SIGNATURE PAGE TO AMENDMENT TO STANDSTILL AGREEMENT]

 

     

     

    

 

 

	 	VERSAPHARM INCORPORATED
	 	 
	 	By	/s/ Joseph Bonaccorsi
	 	 	Name:	 Joseph Bonaccorsi
	 	 	Title:	Secretary
	 	 
	 	COVENANT PHARMA INC.
	 	 
	 	By	/s/ Joseph Bonaccorsi
	 	 	Name:	 Joseph Bonaccorsi
	 	 	Title:	Secretary
	 	 
	 	OLTA PHARMACEUTICALS CORP.
	 	 
	 	By	/s/ Joseph Bonaccorsi
	 	 	Name:	 Joseph Bonaccorsi
	 	 	Title:	 Secretary
	 	 
	 	CLOVER PHARMACEUTICALS CORP.
	 	 
	 	By	/s/ Joseph Bonaccorsi
	 	 	Name:	 Joseph Bonaccorsi
	 	 	Title:	Secretary

 

[SIGNATURE PAGE TO AMENDMENT TO STANDSTILL
AGREEMENT]

 

     

     

    

 

	 	JPMORGAN CHASE BANK, N.A.,
	 	as Administrative Agent
	 	 
	 	By	/s/ Justin Martin
	 	 	Name:	Justin Martin
	 	 	Title:	Authorized Officer
	 	 	 
	 	[Lender signatures on file with the Administrative Agent]

 

[SIGNATURE PAGE TO AMENDMENT TO STANDSTILL
AGREEMENT]

 

     

     

    

 

Exhibit A

 

Ad Hoc Group

 

		1.	Eaton Vance Management

		2.	CIFC Asset Management

		3.	The Carlyle Group

		4.	Funds, accounts, and other investment vehicles managed, advised, or sub-advised by Credit Suisse Asset Management, LLC

		5.	Certain funds and accounts under management by BlackRock Financial Management, Inc. and its affiliates

		6.	Western Asset Management

		7.	GSO Capital Partners

		8.	PineBridge Investments

		9.	Stonehill Capital Management

		10.	BlueMountain Capital Management
	 	11.	Canyon Capital
	 	12.	Symphony Asset Management
	 	13.	MidOcean Partners

 

     

     

    

 

ANNEX
I

 

     

     

    

 

Execution
Version

STANDSTILL AGREEMENT AND FIRST AMENDMENT
TO LOAN AGREEMENT

 

THIS STANDSTILL AGREEMENT
AND FIRST AMENDMENT TO LOAN AGREEMENT (this “Agreement”)1 is made as of May 6, 2019, by and among
AKORN, INC., a Louisiana corporation (the “Company”), the other Loan Parties under the Loan Agreement (as defined
below), an ad hoc group of Lenders (as defined below) identified on Exhibit A hereto, which constitute the “Required
Lenders” under the Loan Agreement (collectively, the “Ad Hoc Group”), certain other Lenders, and the Administrative
Agent (as defined below). The Administrative Agent, the Ad Hoc Group, the other Lenders party hereto (collectively, with the Ad
Hoc Group, the “Standstill Lenders”), the Company and the other Loan Parties shall be referred to collectively
as the “Standstill Parties”, and each shall be referred to individually as a “Standstill Party.”
Capitalized terms used herein and not otherwise defined shall have the meanings ascribed thereto in the Loan Agreement.

 

RECITALS

 

WHEREAS, the
Company, the other Loan Parties, the financial institutions from time to time parties thereto as “Lenders” (collectively,
the “Lenders” and each, a “Lender”) and JPMorgan Chase Bank, N.A., as administrative agent
(the “Administrative Agent”), have entered into that certain Loan Agreement dated as of April 17, 2014 (as the
same shall have been amended, supplemented or otherwise modified from time to time, the “Loan Agreement”), pursuant
to which, among other things, the Lenders have made certain loans, advances, and other financial accommodations to the Company;

 

WHEREAS, the
Standstill Lenders constitute “Required Lenders” as that term is defined under the Loan Agreement;

 

WHEREAS, the
Standstill Lenders and the Company have engaged in good faith, arm’s-length
negotiations regarding a proposed standstill agreement solely with respect to the Lenders’ rights and remedies under the
Loan Agreement or the other Loan Documents as a result of any alleged Event of Default arising from any: (1) alleged breach of
any of the covenants contained in Sections 5.01, 5.02, 5.03, 5.06 or 5.07 of the Loan Agreement (the “Specified Covenants”),
to the extent the facts and circumstances giving rise to any such breach (i) are publicly available as of the First Amendment Effective
Date (as defined herein), or (ii) are not publicly available but have been disclosed in writing (x) to private side Lenders via
IntraLinks; or (y) to Gibson Dunn & Crutcher LLP (“Gibson Dunn”)2 and/or Greenhill & Co.
(“Greenhill”), as legal counsel and financial advisor, respectively, to the Ad Hoc Group (collectively, the
 “Ad Hoc Group Advisors”); and (2) failure to enter into a Comprehensive Amendment (as defined hereinin
the Second Amendment) under the First Amendment (as defined herein) on or before December
13, 2019or to reach an agreement in principle with respect
thereto (such facts and circumstances described in clauses (1) and (2), (including, for the avoidance of doubt, the
existence of this Agreement) the “Specified Matters”);

 

 

 

		1	As
                                         amended by that certain First Amendment to Standstill Agreement and Second Amendment
                                         to Credit Agreement dated as of December 13, 2019,
                                         and that Second Amendment to Standstill Agreement and Third Amendment to Credit Agreement
                                         dated as of February 12, 2020.

 

		2	The
                                         Ad Hoc Group was formerly represented by the Jones
                                         Day. As of October 2, 2019, the attorneys representing the Ad Hoc Group withdrew from
                                         Jones Day and have joined the law firm of Gibson, Dunn & Crutcher LLP, which hereinafter
                                         represents the Ad Hoc Group.

 

    	 	 	 

     

    

 

WHEREAS, as
a result of these negotiations (and in the case of the Administrative Agent, as a result of the direction of the Required Lenders
to the Administrative Agent set forth in Section 12 hereof), the Company and the other Loan Parties have requested, and the Standstill
Lenders have agreed, solely with respect to the Specified Matters, to enter into this Agreement solely for the Standstill Period
(as defined below), subject to and in accordance with the terms and conditions set forth herein; and

 

WHEREAS, the
Company and the other Loan Parties have further requested, and the Standstill Lenders have agreed, subject to the terms and conditions
set forth in this Agreement, to amend the Loan Agreement as set forth herein.

 

NOW, THEREFORE,
in consideration of the covenants and agreements contained herein, and for other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, each Standstill Party, intending to be legally bound hereby, agrees as follows:

 

		1.	1. Incorporation of Recitals; No Waiver;
No Admission of Liability.

 

		(a)	(a)Incorporation of Recitals. The Recitals
to this Agreement are hereby incorporated by reference as fully set forth herein and the Company, the other Loan Parties, the Administrative
Agent, and the Lenders acknowledge these Recitals to be true and correct.

 

		(b)	(b)No Waiver. Nothing in this Agreement
should in any way be deemed a waiver of any Default or Event of Default relating to any Specified Matter or any other Default,
Event of Default, or term or provision of the Loan Agreement or any of the other Loan Documents. The Administrative Agent and the
Lenders have not waived or released, are not by this Agreement waiving or releasing, and have no present intention of waiving or
releasing, any Defaults or Events of Default relating to the Specified Matters, or any other Defaults or Events of Default that
may have occurred prior to the date hereof or that may occur after the date hereof, or any remedies or rights of the Administrative
Agent or the Lenders with respect thereto, all of which are hereby reserved. Any waiver of any Defaults or Events of Default relating
to the Specified Matters or any other Default or Event of Default shall only be effective if set forth in a written instrument
executed and delivered in accordance with the provisions of Section 9.02 of the Loan Agreement.

 

		(c)	(c)No Admission of Liability. The execution
of this Agreement and the fulfillment of its terms is not to be construed as and does not constitute an admission or absence of
any right, remedy, claim, defense, liability or wrongdoing or responsibility on the part of any Standstill Party. Entry into this
Agreement shall not constitute an admission by the Company or any other Loan Party to the occurrence or non-occurrence of a Default
or Event of Default, including with respect to the Specified Matters. The Standstill Lenders hereby acknowledge that, as of the
Second Amendment Effective Date, to the best of their knowledge, they are not aware of any potential Defaults or Events of Default
other than with respect to the Specified Covenants relating to the Specified Matters.

 

    	 	2	 

     

    

 

		2.	2. Standstill Period. The “Standstill
Period” shall mean the period of time from the Effective Date through the earliest of (i) February
7, 2020 (such date, the “Termination Date”) (provided that up to and including the Termination Date,
the Company, the Ad Hoc Group, and the Ad Hoc Group Advisors shall negotiate
in good faith with respect to the terms of a Comprehensive Amendment), upon
the delivery of a notice of termination of the Standstill Period by the Required Lenders (which may be delivered in their sole
discretion), the occurrence of a Default or Event of Default under the Loan Agreement or the other Loan Documents or
(ii) upon the delivery of a notice of termination of the Standstill Period by the Required Lenders (which may be delivered in their
sole discretion), the occurrence of a Default or Event of Default under the Loan Agreement or
the other Loan Documents, or (iii) upon the
delivery of a notice of termination of the Standstill Period by the Required Lenders (which may be delivered in their sole discretion),
the termination of this Agreement as a result of any breach of, or non-compliance with, any provision of this Agreement
by the Company or any other Loan Party, including without limitation any such breach or non-compliance of or with any Affirmative
Covenant, Negative Covenant, Milestone, or Other Covenant (each as defined herein) by the Company or any other Loan Party, subject,
in each case, to any applicable cure period expressly set forth herein (each, a “Standstill Event of Default”),
excluding with respect to clause (ii), for the avoidance of doubt, any Default or Event of Default relating to a Specified Matter
(the foregoing period, the “Standstill Period”). The occurrence of any one of the events described in clauses
(i), and
(ii), and (iii) of this Section 2 shall constitute a “Termination Event”
hereunder.

 

		3.	Sale Process. During the Standstill Period, the Company
will market and conduct a sale process for substantially all of its assets, free and clear of liabilities (subject to customary
exceptions), and in accordance with the Milestones set forth herein (the “Sale Process”). The Sale Process will
be consummated on either an out-of-court or in-court basis (including through the filing of chapter 11 cases (the “Chapter
11 Cases”) in a United States Bankruptcy Court (the “Bankruptcy Court”) in order to effectuate the
Sale Process pursuant to 11 U.S.C. § 101-1532 (the “Bankruptcy Case,” and such transaction the “Sale
Transaction”)).

 

		4.	3. Standstill. Subject to the terms
and conditions herein set forth and in reliance upon the Company’s and the other Loan Parties’ representations, acknowledgments,
agreements and warranties herein contained, including, without limitation, the satisfaction of the conditions precedent set forth
in Section 911
herein, the Standstill Parties agree that during the Standstill Period, neither the Administrative Agent nor the Lenders shall
(i) declare, and such parties shall be prohibited from declaring, any Event of Default under the Loan Agreement or the other Loan
Documents or (ii) otherwise seek to exercise any rights or remedies under the Loan Agreement or the other Loan Documents, in each
case of clauses (i) and (ii) above, to the extent directly relating to any Specified Matter. The Administrative Agent’s and
the Lenders’ agreement to standstill is temporary and limited in nature and shall not be deemed: (i) to preclude or prevent
the Administrative Agent or the Standstill Lenders from exercising any rights and remedies under the Loan Documents, applicable
law or otherwise arising on account of (A) any Default or Event of Default other than those with respect to the Specified Matters,
(B) the Specified Matters from and after the termination of the Standstill Period following the occurrence of a Standstill Event
of Default, (C) the Specified Matters from and after the Termination Date, or (D) the right to seek payment of attorneys’
fees, financial advisor fees, and other costs and expenses in connection with the preparation, negotiation, execution and delivery
of this Agreement and the exercise of the rights and remedies described herein or otherwise in connection with the Loan Documents;
(ii) to effect any amendment of the Loan Agreement or any of the other Loan Documents, all of which shall remain in full force
and effect in accordance with their respective terms, as modified hereby; (iii) to constitute a waiver of any Default or Event
of Default relating to the Specified Matters or any other Default or Event of Default (whether now existing or hereafter occurring)
or any term or provision of the Loan Agreement or any of the other Loan Documents; or (iv) to establish a custom or course of dealing
among any Loan Party, the Administrative Agent and the Standstill Lenders.

 

    	 	3	 

     

    

 

		5.	4. Termination of Agreement. Except
as expressly set forth herein, this Agreement and all provisions herein, shall terminate upon the occurrence of a Termination Event.

 

		6.	5. Affirmative Covenants. Until the
occurrence of a Termination Event, the Company and the other Loan Parties covenant and agree that during the Standstill Period,
the Company will (the “Affirmative Covenants”):

 

		(a)	(a)furnish monthly 3-statement financials
and Key Performance Indicators (“KPI”) reporting included in the Company’s management reporting to the
Ad Hoc Group Advisors (which reporting shall include volume and pricing for the top 30 products), in each case no later than thirty
(30) days after the end of each month; provided that, commencing in January 2020, the 3-statement financials shall be retroactively
adjusted to be in a format comparable to the Business Plan and the 2019 budget on a monthly basis, beginning as of September 30,
2019, and shall include a breakdown of manufacturing costs by key components and by manufacturing facility; for the avoidance of
doubt, the retroactively adjusted financials shall be delivered no later than January 30, 2020;
provided further that, beginning in January 2020, the 3-statement financials shall be reported in a format comparable to
the existing Business Plan, the 2020 Budget (as defined herein), and the updated Business Plan;

 

		(b)	(b)provide the Ad Hoc Group Advisors operating
statistics broken down by facility (e.g., production levels, capacity utilized, etc.) and plant KPIs on a monthly basis,
in each case no later than thirty (30) days after the end of each month;

 

		(c)	(c)beginning in January 2020 with respect
to December 2019 results, provide the Ad Hoc Group Advisors pipeline reporting for each product under development, which reports
shall include information with respect to (i) manufacturing facility, (ii) product category, ,
(iii) estimate of filing and launch dates, (iv) estimated market size, (v) estimated competitors at launch, (vi)
projected research and development expenses, (vii) commentary on stage of development, with the Company to use reasonable efforts
to provide key open workstreams and estimated milestones for FDA filing, and (viii) primary development facility, if applicable;
provided that projected revenue for products under development shall be provided with the Business Plan; provided further
that any molecules names appearing therein may be redacted;

 

    	 	4	 

     

    

 

		(d)	(d)beginning with the first month following
the delivery of the Business Plan (as defined herein), furnish, by the tenth (10) Business Day of each month, monthly reports regarding
pending Abbreviated New Drug Applications (“ANDAs”) to the Ad Hoc Group Advisors, which reports shall include
ANDAs submitted to the FDA (as defined below) and the status of FDA approvals with respect thereto, estimated market size and known
competitor information for each such ANDA, and a good faith estimate of the timing of the approval of each such ANDA and related
competitive approvals; provided that any molecules names appearing therein may be redacted; provided further that,
commencing in January 2020, such reports shall also include information with respect to (i) manufacturing facility, (ii) product
category, (iii) estimate of filing and launch dates, and (iv) commentary on outstanding requirements for FDA approval status; provided
that projected revenue for filed ANDAs shall be provided with the Business Plan;

 

		(e)	on or prior to the 10th calendar day of each month (or the first Business Day thereafter),
conduct monthly telephone conferences with all Lenders and permit questions from such Lenders and answers, with such telephone
conferences being split into (1) a Public-Siders and non-Public-Siders portion and (2) a solely non-Public-Siders portion; provided
that (i) questions from the Lenders shall be provided to the Company in writing no later than two (2) Business Days in advance
and (ii) for the avoidance of doubt, the Company shall not be obligated to disclose any material non-public information during
the Public-Siders and non-Public-Siders portion of such telephone conferences;

 

		(f)	(f)on or prior to the 10th calendar
day of each month (or the first Business Day thereafter), conduct monthly telephone conferences solely with the Ad Hoc Group Advisors
and any Lenders which have become “restricted” and are then subject to non-disclosure agreements in customary form
reasonably satisfactory to the Company (collectively, the “Restricted Lenders”) with the Company and permit
questions from the Ad Hoc Group Advisors and Restricted Lenders and answers; provided that, to the extent the Restricted
Lenders monthly telephone conference is combined with the Public-Siders/non-Public-Siders telephone conference outlined in Section
56(ce)
hereof, such telephone conference will include a separate portion solely for Restricted Lenders; provided further that questions
from the Ad Hoc Group Advisors and Restricted Lenders shall be provided to the Company in writing no later than two (2) Business
Days in advance;

 

		(g)	(g)require its advisors (including, for the
avoidance of doubt, PJT Partners and AlixPartners) (collectively,
the “Company Advisors”) to continue conducting weekly status calls with the Ad Hoc Group Advisors,
which weekly status calls, commencing on the Third Amendment Effective Date, shall, for the avoidance of doubt, also include litigation
updates from Cravath, Swaine & Moore, with respect to ongoing material litigations, including the Fresenius litigation and
the shareholder litigation and updates with respect to the Sale Process; provided that, in addition to the Company
Advisors, such status calls will be attended at least every other week by Jennifer Bowles or Duane Portwood; provided further
that a representative of the investment banker engaged with respect to the Akorn India Private Ltd. sale process shall provide
an email update every week to the Ad Hoc Group Advisors on the status of such sale process (or email confirmation that there have
been no material updates to such sale process);

 

    	 	5	 

     

    

 

		(h)	(h)promptly, but in no event later than 48
hours after receipt, provide the Ad Hoc Group Advisors with copies of any material (i) correspondence received from the United
States Food and Drug Administration (“FDA”), and (ii) cover letters to reports delivered to the FDA, in each
case solely with regard to any FDA Form 483 or warning letter;

 

		(i)	(i)promptly, but in no event later than 48
hours after receipt by the Company or the other Loan Parties, provide to the Ad Hoc Group Advisors copies of any warning letter(s),
Official Action Indicated, or OAI, statuses, or similar regulatory actions by Swissmedic or the Central Drugs Standard Control
Organization, or CDSCO, regarding those certain manufacturing facilities operated by the Company and its Subsidiaries in Amityville,
New York, Hettlingen, Switzerland, and Paonta Sahib, Himachal Pradesh, India, and those certain research and development centers
operated by the Company and its Subsidiaries in Vernon Hills, Illinois and Cranbury, New Jersey;

 

		(j)	(j)promptly, but in no event later than 48
hours after preparation or receipt, provide to the Ad Hoc Group Advisors formal minutes for any FDA meeting or call to the extent
made available to, or prepared by, the Company or the other Loan Parties; provided that the Company will be entitled to
redact confidential or privileged information contained therein;

 

		(k)	(k)(i) on or before the 3rd Business Day of
each month, provide the Ad Hoc Group Advisors with monthly Quality System Corrective Action Plan, or QSCAP, update reports, (ii)
arrange for monthly update calls between the Ad Hoc Group Advisors and the Company’s regulatory counsel, and (iii) arrange
for (A) monthly update calls with (1) NSF Pharma Biotech (“NSF”) and (2) The Quantic Group (“Quantic”),
and (B) any other calls with the Company’s cGMP consultants to be scheduled at the reasonable request of the Ad Hoc Group
Advisors; provided that the Company shall use commercially reasonable efforts to organize expedited calls among the Company’s
third-party cGMP consultants and the Ad Hoc Group Advisors when reasonably requested by the Ad Hoc Group Advisors;

 

		(l)	(l)to the
extent any third partyThe Company shall commission its
own Quality of Earnings (“QoE”) or valuation work isreport
to be completed, the Company on
or before March 15, 2020, and shall (i) provide the Ad Hoc Group Advisors regular, but in no event less frequently than
weekly, updates during the drafting of such work productthe
same and (ii) promptly, but in no event later than 48 hours after receipt, provide a copy of anythe
final QoE or valuation reports
to the Ad Hoc Group Advisors; provided that the Company’s obligations
with respect to clauses (i) and (ii) hereof, shall be subject to approval of the third parties conducting and/or commissioning
the applicable analysis; provided further that, to the extent the Company
is paying for any such analysis, the Company shall require the applicable third party to agree
to share the analysis with the Ad Hoc Group prior to any retention
or work being commenced; 

 

    	 	6	 

     

    

 

		(m)	(m)(i) provide
a weekly status update on the junior capital raise process (the “Junior Capital Process”) or any other capital
raise or other formal processes run by the Company (“Other Process”) to
the Ad Hoc Group Advisors and (ii) pPromptly,
but in no event later than 48 hours after receipt (subject to any confidentiality obligations therein), deliver
copies to the Ad Hoc Group Advisors of all (A) formal process
or offering materials provided generally to participants in the Junior CapitalSale
Process or Other Process, as applicable (which, for the avoidance of doubt, shall
not be required to include individual Q&A responses to diligence requests, unless required by the following proviso), (B) written
proposals, term sheets, commitment letters, and any other similar materials received in connection with the Junior
Capital Process or Other Process, as applicable; provided that, to the extent there are material developments (as determined
in good faith by the Company) in the Junior Capital Process or OtherSale
Process, as applicable, and (C) all bidding materials on a redacted
basis, including, but not limited to marketing materials; provided that (1) the Company shall provideshare
with the Ad Hoc Group Advisors with an update within 24 hours of suchall
binding bids received in connection with the Sale Process on an un-redacted basis when, and if, received, and (2) the Company shall
otherwise communicate any material developments with respect
to the Sale Process to the Ad Hoc Group Advisors, in good faith; and

 

		(n)	(n)continue to retain PJT Partners and AlixPartners
consistent with the terms of their respective engagement agreements as in effect on the date hereof, or, if PJT Partners and AlixPartners
are no longer retained by the Company, such other financial and restructuring advisors reasonably acceptable to the Ad Hoc Group.

 

The failure to comply with any
of the Affirmative Covenants shall not constitute a Default or Event of Default under the Loan Agreement or the other Loan Documents,
but shall, following the Cure Period (defined below), constitute a Standstill Event of Default that permits the Required Lenders
to declare a Termination Event. “Cure Period” shall mean five (5) Business Days after the earlier of (x) the
Company’s knowledge of its breach or failure to comply or (y) notice thereof from the Administrative Agent (which notice
shall be given solely at the request of the Required Lenders).

 

		7.	6. Negative Covenants. Until the occurrence
of a Termination Event, the Company and the other Loan Parties covenant and agree that during the Standstill Period the Company
shall not, and shall not permit any Restricted Subsidiary to, directly or indirectly (the “Negative Covenants”):

 

    	 	7	 

     

    

 

		(a)	(a)create, incur, assume, or suffer to exist
any Permitted Ratio Indebtedness pursuant to Section 6.01(l) of the Loan Agreement (including, for the avoidance of doubt, any
asset based lending facility or cash flow supported revolver), any Indebtedness pursuant to Section 6.01(f) of the Loan Agreement,
or any Incremental Term Facilities pursuant to Section 2.09 of the Loan Agreement, Incremental Term Loans pursuant to Section 2.09
of the Loan Agreement or Incremental Notes pursuant to Section 2.09 of the Loan Agreement or in each case, create, incur, assume
or suffer to exist, any Lien in connection with the foregoing; provided, however, that any such Indebtedness (excluding,
other than with respect to any Loans outstanding under the Loan Agreement as of the date hereof, any refinancing of any such Indebtedness)
created, incurred, assumed or in existence prior to the Effective Date pursuant to, and in reliance on, such sections shall be
permitted to remain outstanding. For the avoidance of doubt, the Company shall not be permitted to incur any new Indebtedness that
is contractually senior in right of payment or that is secured by Liens that would rank senior to the Liens securing the existing
Loans, or that primes existing Loans in any manner whatsoever (other than ordinary course (i) Capital Lease Obligations, (ii) trade
obligations, and (iii) similar obligations);

 

		(b)	(b)create, incur, assume, or permit to exist
any Liens:

 

		(i)	(i)pursuant to Section 6.02(l) of the Loan
Agreement securing Indebtedness or other obligations in excess of $10 million in the aggregate; or

 

		(ii)	(ii)pursuant to Section 6.02(k) of the Loan
Agreement or with respect to any Incremental Term Facilities, Incremental Term Loans or Incremental Notes; and

 

		(iii)	(iii)arising out of Sale and Leaseback Transactions
(as defined in the Loan Agreement) permitted by Section 6.06 of the Loan Agreement in excess of $10,000,000 pursuant to Section
6.02(h) of the Loan Agreement.;

 

provided, however,
that any such Liens (excluding, for the avoidance of doubt, any Liens in respect of refinancing Indebtedness prohibited under Section
6(a) hereof) created, incurred, assumed or in existence prior to the Effective Date pursuant to, and in reliance on, such sections
shall be permitted to remain in effect;

 

		(c)	(c)purchase, hold, or acquire any investment:

 

		(i)	(i)in Equity Interests in a non-Loan Party
pursuant to Section 6.04(c) of the Loan Agreement;

 

		(ii)	(ii)constituting a loan or advance to a non-Loan
Party pursuant to Section 6.04(d) of the Loan Agreement;

 

		(iii)	(iii)constituting a Guarantee of Indebtedness
of a non-Loan Party pursuant to Section 6.04(e) of the Loan Agreement;

 

    	 	8	 

     

    

 

		(iv)	(iv)pursuant to Section 6.04(j) of the Loan
Agreement; provided that such investment shall be permissible (x) if limited to all cash consideration or (y) in the case
of any (A) out-licensing transactions or other sale of revenue stream rights, up-front payments, milestones, royalties, profit
shares, distribution fees, or similar arrangements with respect to core assets, if consummated with the prior written consent of
the Required Lenders at such time (which may be withheld in their sole discretion), or (B) out-licensing transactions or other
sale of revenue stream rights, up-front payments, milestones, royalties, profit shares, distribution fees, or similar arrangements
with respect to non-core assets if consummated with the prior written consent of Required Lenders at such time (which consent shall
not be unreasonably withheld or delayed); provided, however, that no consent of the Required Lenders shall be required
in connection with out-licensing transactions or other sales of revenue stream rights, up-front payments, milestones, royalties,
profit shares, distribution fees, or similar arrangements, with fair market value not in excess of $5 million in the aggregate,
with respect to dormant or not fully developed ANDAs and/or products;

 

		(v)	(v)constituting a Permitted Acquisition pursuant
to Section 6.04(l) of the Loan Agreement; provided that (x) the Company and its Restricted Subsidiaries may consummate Drug
Acquisitions in an amount not exceeding $7.5 million in the aggregate, and (y) the Company and its Restricted Subsidiaries may
consummate Permitted Acquisitions other than Drug Acquisitions in an amount not exceeding $7.5 million in the aggregate (or, with
respect to any such Permitted Acquisitions by non-Loan Parties, not exceeding $2.5 million in the aggregate);

 

		(vi)	(vi)constituting Permitted Foreign Loans pursuant
to Section 6.04(m) of the Loan Agreement; or

 

		(vii)	(vii)utilizing the Available Amount pursuant
to Section 6.04(n) of the Loan Agreement.;

 

provided, however,
that any investments purchased, held or acquired (or made pursuant to contractual commitments in effect) prior to the Effective
Date pursuant to, and in reliance on, such sections shall not be limited by this Section 67(c);

 

		(d)	(d)utilize any asset sale reinvestment rights
pursuant to Section 2.11(c) of the Loan Agreement;

 

		(e)	(e)make a Discounted Voluntary Prepayment
pursuant to Section 2.11(g) of the Loan Agreement or acquire any Loans pursuant to Section 9.04(e) of the Loan Agreement; provided
that such Discounted Voluntary Prepayments and acquisitions shall be permissible if offered to all Lenders at such time;

 

    	 	9	 

     

    

 

		(f)	(f)make any Extension Offers to any Lenders
or enter into any Extensions with any Lenders, in each case pursuant to Section 2.23 of the Loan Agreement; provided that
such Extension Offers and Extensions shall be permissible if offered to all Lenders at such time;

 

		(g)	(g)declare or make, or agree to declare or
make, directly or indirectly, any Restricted Payment or prepayment of any Specified Indebtedness pursuant to Section 6.08 of the
Loan Agreement other than pursuant to Sections 6.08(a)(ii) or (a)(iii); provided that any Restricted Payments under Section
6.08(a)(ii) shall not be permitted to be paid from Loan Parties to non-Loan Parties;

 

		(h)	(h)other than with respect to assets owned
by Akorn India Private Limited (or the Equity Interests therein), sell, transfer, lease, or otherwise dispose of assets pursuant
to Section 6.05(h) of the Loan Agreement with an aggregate book value in excess of $15 million; provided that, any Net Proceeds
from the sale of Akorn India Private Limited shall be utilized to prepay outstanding Loans on a pro rata basis;

 

		(i)	(i)sell, transfer, lease, or otherwise dispose
of assets pursuant to Section 6.05(e) of the Loan Agreement or engage in Sale and Leaseback Transactions pursuant to Section 6.06
of the Loan Agreement;

 

		(j)	(j)without prior written consent of the Required
Lenders at such time, (i) designate any Restricted Subsidiary as an Unrestricted Subsidiary pursuant to Section 5.12 of the Loan
Agreement, or otherwise create or form any Unrestricted Subsidiary, and/or (ii) transfer any assets of the Company or any of its
Restricted Subsidiaries to any Unrestricted Subsidiary, except as otherwise permitted under the Loan Agreement (after giving effect
to this Agreement); or

 

		(k)	(k)without the prior written consent of the
Required Lenders at such time, release any existing Loan Guarantors from their Guarantee, otherwise release any existing Loan Guarantors
from their Obligations, or release any Lien or security interest granted by such Loan Guarantors under the Loan Documents outside
of the ordinary course of business.

 

Notwithstanding the foregoing,
the Company and its Restricted Subsidiaries may incur Indebtedness of the type set forth in Section 6.01(f) of the Loan Agreement
and make investments in Equity Interests of non-Loan Parties of the type set forth in Section 6.04(c) of the Loan Agreement in
an aggregate amount not exceeding $15,000,000 in order to fund capital expenditures and operations
of non-Loan Party Subsidiaries.30,000,000, which amount
shall be limited to $15,000,000 after the Third Amendment Effective Date (the “Additional Non-Loan Party Investment Amount”),
with (x) $7,500,000 of such Additional Non-Loan Party Investment Amount being available to the Company as of the Third Amendment
Effective Date and (y) the remaining $7,500,000 of the Additional Non-Loan Party Investment Amount being available to the Company
(absent reasonable objection from the Ad Hoc Group Advisors) one week after providing the Ad Hoc Group Advisors with additional
materials and other information with respect to the use of the proceeds of any such Additional Non-Loan Party Investment Amount.

 

    	 	10	 

     

    

 

For the avoidance of doubt, any
breach of, or failure to comply with any of the Negative Covenants set forth above shall result in an immediate Event of Default
under the Loan Agreement and the Loan Documents.

 

		8.	7. Milestones. Until the occurrence
of a Termination Event, the Company shall, or shall cause, the following to occur by the times and dates set forth below, during
the Standstill Period (the “Milestones”); provided that any “delivery” required under the
Milestones shall only require delivery to the Ad Hoc Group Advisors, and shall be in form and scope reasonably satisfactory to
the Ad Hoc Group Advisors.

 

		(a)	(a)(i) Commencing on April 18, 2019, and
continuing until December 18, 2019, the Company shall deliver a 13-week cash flow forecast on a monthly basis, with each subsequent
13-week cash flow forecast delivered on or prior to the tenth Business Day of each month. The Company shall deliver monthly variance
reporting concurrently with each delivery of the 13-week cash flow forecast, starting in May 2019.

 

(ii)             
(ii)Beginning on January 17, 2020, the Company shall deliver
13-week cash flow forecasts every other week (with respect to the period ending during the immediately preceding week). Beginning
with the week of January 6, 2020, the Company shall deliver variance reporting every week; provided that variance reporting
subsequent to the Second Amendment Effective Date should be compared to both the 13-week cash flow forecast provided to the Ad
Hoc Group Advisors in December 2019, as well as the new cash flow forecast provided every other week. Variances shall be measured
on both a weekly and cumulative basis and the variance report shall include an MD&A indicating which variances are permanent
and which are temporary / timing oriented.

 

(iii)           
(iii)For the avoidance of doubt, under no circumstances shall
any variance reported constitute a Default, an Event of Default, a Termination Event, or otherwise permit termination of this Agreement.

 

		(b)	(b)The Company shall deliver a five-year business
plan (the “Business Plan”) by May 3, 2019, which business plan shall include a balance sheet, statement of cash
flow, and income statement (including material assumptions) on a monthly basis for the first year and on a quarterly basis thereafter.

 

		(c)	(c)On or before January 6, 2020, the Company
shall deliver to the Ad Hoc Group Advisors a detailed 2020 budget in a format consistent with the 2019 budget, including all underlying
schedules (the “2020 Budget”), with an updated version of such 2020 Budget to be provided within 24 hours of
board approval to the extent the 2020 Budget differs from what has been previously provided to the Ad Hoc Group Advisors.

 

		(d)	(d)On or before January 6, 2020, the Company
shall deliver to the Ad Hoc Group Advisors an updated Business Plan in a format consistent with the Business Plan delivered on
May 3, 2019, with an updated version to be provided within 24 hours of board approval of such Business Plan, to the extent the
updated Business Plan differs from what has been previously provided to the Ad Hoc Group Advisors; provided that, for the avoidance
of doubt, the updated Business Plan shall be accompanied by (i) the rationale behind the inclusion of each new product included
in updated Business Plan, and (ii) the rationale behind the exclusion of each new product excluded from the updated Business Plan.

 

    	 	11	 

     

    

 

		(e)	(e)PJT Partners shall provide a strategic
alternatives report (the “Strategic Alternatives Report”) by May 31, 2019 to the Ad Hoc Group Advisors, which
report shall include detailed alternatives to reduce the Lenders’ exposure.

 

		(f)	On or before January 10, 2020, the Company shall make a
proposal to the Ad Hoc Group with respect to the Comprehensive Amendment (as defined herein).

 

		(g)	On or before February 5, 2020, the Company and the Ad
Hoc Group shall reach an agreement in principle with respect to the Comprehensive Amendment.

 

		(f)	(h)On or before January 8, 2020 (or such later
date as agreed by the Ad Hoc Group), the Company shall execute customary control agreements with the applicable depository banks
and the Administrative Agent establishing control over all deposit accounts, securities accounts, and investment accounts of each
Loan Party (subject to certain excluded accounts to be agreed), in each case, in form and substance reasonably acceptable to the
Administrative Agent and the Ad Hoc Group.

 

		(g)	(i)On or before January 8, 2020, the Company
shall use commercially reasonable efforts to take all necessary actions to effect the perfection of any lien on or security interest
in any of the Collateral that is not perfected as of the Second Amendment Effective Date, in each case to the extent the Company,
the Administrative Agent, or the Required Lenders have identified any required actions, including filing or recording necessary
statements, filings, agreements, mortgages, or other instruments (which, in each case, shall be in form and substance reasonably
acceptable to the Administrative Agent and the Ad Hoc Group). For the avoidance of doubt, the use of the term “commercially
reasonable efforts” in this Section 78(ig)
shall in no way limit, replace, or otherwise affect the Company’s existing obligations under the Loan Agreement or other
Loan Documents, including, but not limited to, the Company’s obligations under Section 5.11 of the Loan Agreement with respect
to “Further Assurances.”

 

The failure to comply with any
of the Milestones (with the exception of the Milestones contained in Sections 78(f),
(g), (h), and (i)) shall not constitute a Default or Event of Default under the Loan Agreement or the other Loan Documents, but
shall, following the Cure Period, constitute a Standstill Event of Default that permits the Required Lenders to declare a Termination
Event. Notwithstanding the foregoing, failure to comply with the Milestones in Sections 78(f),
(g), (h), and (i) shall constitute an immediate Event of Default under the Loan Agreement.

 

    	 	12	 

     

    

 

		9.	Sale Process Milestones. Upon the commencement of
and during the Sale Process, until the occurrence of a Termination Event, the Company shall, or shall cause, the following to occur
by the times and dates set forth below, during the Standstill Period, except as otherwise extended or modified in writing (including
via e-mail) by counsel to the Company and the Required Lenders (the “Sale Process Milestones”); provided
that any “delivery” required under the Milestones shall be in form and scope reasonably satisfactory to the Ad
Hoc Group Advisors or the Ad Hoc Group, as applicable. 

 

		(a)	To the extent that the bids submitted by third
                                                               parties (which have not been withdrawn) in connection with the Sale Process are sufficient to pay all Obligations under the
                                                               Loan Agreement (taking into account available cash in the case of cash free, debt free bids), including for the avoidance of
                                                               doubt, the Call Protection, the Exit Payments, and principal and accrued interest under the Loans (the “Par Plus
                                                               Accrued Milestones”), then:

 

		(i)	On or before February 17, 2020, the
Company shall submit a proposal to the Ad Hoc Group for
the consensual use of cash collateral in the Chapter 11 Cases (the “Cash Collateral Term Sheet”).

 

		(ii)	On or before February 21, 2020, the Company shall
provide the Ad Hoc Group Advisors a debtor in possession budget , together with a weekly forecast through August 31, 2020 (the
 “DIP Budget”) and a wind-down budget the “Wind-Down Budget”).

 

		(iii)	On or before February 21, 2020, the Company shall
provide a draft of the bid procedures that will be implemented pursuant to a Sale Transaction in the Chapter 11 Cases (the “Bid
Procedures”) and accompanying draft order (the “Bidding Procedures Order”).

 

		(iv)	On or before February 28, 2020, the Company shall
provide the Ad Hoc Group Advisors a copy of the Asset Purchase Agreement shared (or to be shared) with the final bidders in connection
with the Sale Process (the “APA”).

 

		(v)	On or before March 6, 2020, the Company
and the Ad Hoc Group Advisors shall have
agreed to the form of the Bid Procedures.

 

		(vi)	On or before March 6, 2020, the Company
and Ad Hoc Group shall reach an agreement in principle with
respect to the Cash Collateral Term Sheet, which term sheet
shall provide for no additional economic consideration (other than default interest); provided that financial covenant testing
to be included in the Cash Collateral Term Sheet shall be determined once the DIP Budget is delivered to the Ad Hoc Group Advisors,
which financial covenant testing shall be in form and substance
acceptable to the Ad Hoc Group.

 

		(vii)	The Company shall provide a deadline for refreshed
bids from all second round bidders taking part in the Sale Process (the “Second Round Bids”) of March 9, 2020.

 

    	 	13	 

     

    

 

		(viii)	On or before March 12, 2020, the Company shall provide
to the Ad Hoc Group Advisors with a waterfall analysis based on all Second Round Bids received.

 

		(ix)	On or before March 27, 2020, binding bids (the “Binding
Bids”) in connection with the Sale Process shall be due, provided that Company shall require that, such Binding Bids
shall (A) not be subject to any diligence out or financing condition, and (B) include an agreement to provide a deposit not less
than 5% of the Company’s total enterprise value (“TEV”), which deposit shall only be due if such Binding
Bid is selected by the Company, as specified in the applicable binding bid upon selection as the “Stalking Horse” bid
in the Sale Process.

 

		(x)	On or before March 30, 2020, the Company shall provide
to the Ad Hoc Group Advisors a summary of all Binding Bids, including, but not limited to, for each Binding Bid (to the extent
provided by the applicable bidder), (A) applicable markups of the APA against the form APA, (B) the applicable purchase price for
the Company on a cash free / debt free basis, (C) the financing sources and proposed capital structure backing up each Binding
Bid, (D) if applicable, commitment letters for any proposed financing of the purchase price for any Binding Bids, (E) if applicable,
outstanding conditions in connection with the Binding Bids and detail surrounding internal approvals required to satisfy the same,
and (F) information related to the time remaining until closing on account of any pending Binding Bids; provided that, all
information provided pursuant this Section 9(a)(x) shall be un-redacted.

 

		(xi)	On or before April 5, 2020, the Company
shall (A) select the Stalking Horse Bidder (and unless the Company and the Ad Hoc Group Advisors determine that the Sale Process
may be effectuated on an out-of-court basis) and (B) commence the Chapter 11 Cases with a stalking horse APA (the “Stalking
Horse APA”) and the Bid Procedures; provided that, upon commencement of the Chapter 11 Cases, all versions of
the Stalking Horse APA shall be shared with the Ad Hoc Group
Advisors.

 

		(xii)	On or before May 6, 2020, the Bankruptcy Court shall
enter the Bidding Procedures Order (in form and substance reasonably acceptable to the Ad Hoc Group) approving the Bidding Procedures
and the Stalking Horse APA in connection with the Sale Transaction.

 

		(xiii)	Binding bids in connection with the Sale Transaction
under the Chapter 11 Cases shall be due on or before June 26, 2020.

 

		(xiv)	If required as set forth in the Bidding Procedures
Order, the Company shall conduct an auction for a Sale Transaction by no later than June 30, 2020.

 

    	 	14	 

     

    

 

		(xv)	On or before July 15, 2020, the Court shall enter
an order (in form and substance reasonably acceptable to the Ad Hoc Group) approving the proposed sale of the Company’s assets
in connection with the Sale Process (the “Sale Order”).

 

If
at any time during the Sale Process, no bids exist sufficient to pay all Obligations under the Loan Agreement (taking into
account available cash in the case of cash free, debt free bids), including, for the avoidance of doubt, the Call Protection, the Exit Payments, and all principal
and accrued interest, there shall be an immediate Event of Default under the Loan Agreement, and within three Business Days
of such occurrence, the Company must toggle into the Non-Par Plus Accrued Milestones (defined below) (a “Toggle
Event”); provided that, Required Lenders may consent to the modification of any applicable Sale Process
Milestones or other Milestone hereunder or Toggle Event, which consent can be communicated in writing by the Ad Hoc Group
Advisors (for which, email communication will be sufficient).

 

The
failure to comply with any of the Par Plus Accrued Milestones shall not constitute a Default or Event of Default under the Loan
Agreement or the other Loan Documents, but shall, following the Cure Period, constitute a Standstill Event of Default that permits
the Required Lenders to declare a Termination Event. 

 

		(b)	Upon the occurrence of a Toggle Event, then the following
Sale Milestones shall immediately come into effect (the “Non-Par Plus Accrued Milestones”):

 

		(i)	On or before the date that is fourteen (14) days
after a Toggle Event, the Company shall provide the Ad Hoc Group Advisors with a standalone restructuring proposal.

 

		(ii)	On or before February 17, 2020, the Company shall
provide to the Ad Hoc Group Advisors with a Cash Collateral Term Sheet.

 

		(iii)	On or before the date that is nineteen (19) days
after a Toggle Event, the Company shall provide the Ad Hoc Group Advisors with a draft restructuring support agreement (the “RSA”),
an analysis of general unsecured claims (the “GUC Analysis”), and an exit/emergence analysis (the “Exit/Emergence
Analysis”).

 

		(iv)	On or before February 21, 2020, the Company shall
provide to the Ad Hoc Group Advisors, the proposed Bid Procedures and the Bid Procedures Order.

 

		(v)	On or before February 21, 2020 (or March
6, 2020, should a Toggle Event occur after February 21, 2020), the
Company and the Ad Hoc Group Advisors shall
reach an agreement in principle with respect to the Cash
Collateral Term Sheet, which term sheet shall provide for no additional economic consideration (other than default interest); provided
that financial covenant testing to be included in the Cash Collateral Term Sheet shall be determined once the DIP Budget is delivered
to the Ad Hoc Group Advisors, which financial covenant testing shall be in form and substance acceptable to the Ad Hoc Group.

 

    	 	15	 

     

    

 

		(vi)	On or before the date that is twenty-six (26) days
after a Toggle Event, the Company and the Ad Hoc Group Advisors shall reach an agreement in principal with respect to the RSA.

 

		(vii)	On or before the date that is twenty-six (26) days
after a Toggle Event, the Company shall deliver to the Ad Hoc Group Advisors drafts of any customary first day pleadings for the
Chapter 11 Cases, a proposed plan of reorganization (the “Plan”), and a proposed disclosure statement (the “Disclosure
Statement”).

 

		(viii)	On or before February 26, 2020 (or March 6, 2020,
should a Toggle Event occur after February 26, 2020), the Company and the Ad Hoc Group Advisors shall reach an agreement in principle
on the Bidding Procedures and the Bidding Procedures Order.

 

		(ix)	On or before the date that is thirty
(30) days after a Toggle Event, the Company shall commence the Chapter 11 Cases to consummate either (A) a Sale Transaction pursuant
with the Lenders serving as a stalking horse, and entering into a stalking horse APA (the “Credit Bid APA”)
in order to exercise their rights to credit bid under the Loan Documents or (B) a transaction backstopped by an executed RSA; provided
that, to the extent the Company is pursuing
a Sale Transaction, the Company will file a motion seeking approval of the Bidding Procedures, the Bidding Procedures Order, and
the Sale Order on the petition date.

 

		(x)	On or before the date that is thirty-eight (38) days
after a Toggle Event, the Company shall file the Plan and Disclosure Statement, which, for the avoidance of doubt, shall be in
form and substance reasonably acceptable to the Ad Hoc Group.

 

		(xi)	On or before the date that is the sixty-one (61)
days after a Toggle Event, the Bankruptcy Court shall enter the Bidding Procedures Order in form and substance reasonably acceptable
to the Ad Hoc Group.

 

		(xii)	On or before the date that is seventy-three (73)
days after a Toggle Event, the Bankruptcy Court shall, subject to the court availability, hold a hearing on the adequacy of the
Disclosure Statement and enter an order approving the same as well as solicitation of the Plan within one (1) Business Day.

 

		(xiii)	On or before the date that is one hundred and five
(105) days after a Toggle Event, bids for the Sale Transaction shall be due.

 

		(xiv)	On or before the date that is one hundred and twelve
(112) days after a Toggle Event, the Company shall conduct the auction for the 363 Sale.

 

    	 	16	 

     

    

 

		(xv)	On or before the date that is one hundred and eighteen
(118) days after a Toggle Event, the Bankruptcy Court shall, subject to court availability, hold a confirmation hearing with respect
to the Plan and enter an order on the same, which order shall be in form and substance reasonably acceptable to the Ad Hoc Group,
within two (2) Business Days.

 

		(xvi)	On or before the date that is one hundred and nineteen
(119) days after a Toggle Event, the Bankruptcy Court shall approve the Sale Transaction and enter the Sale Order.

 

		(xvii)	On or before the date that is one hundred and nineteen
(119) days after a Toggle Event, the effective date of the Plan shall occur; provided, that, if regulatory approvals associated
with a Sale Transaction remain pending as of such date, this date shall be automatically extended to the date that is the first
Business Day following receipt of all necessary regulatory approvals.

 

		(xviii)	On or before the date that is one hundred and thirty-three
(133) days after a Toggle Event, the Sale Transaction shall close; provided, that, if regulatory approvals associated with
a Sale Transaction remain pending as of such date, this date shall be automatically extended to the date that is the first Business
Day following receipt of all necessary regulatory approvals.

 

The
failure to comply with any of the Non-Par Plus Accrued Milestones shall not constitute a Default or Event of Default under the
Loan Agreement or the other Loan Documents, but shall, following the Cure Period, constitute a Standstill Event of Default that
permits the Required Lenders to declare a Termination Event; provided that, Required Lenders may consent to the modification
of any applicable Sale Process Milestones or other Milestone hereunder or Toggle Event, which consent can be communicated in writing
by the Ad Hoc Group Advisors (for which, email communication will be sufficient). 

 

		10.	8. Other Covenants. The Company covenants
and agrees that (the “Other Covenants”):

 

		(a)	(a)Judgment or Damages Claims. During
the Standstill Period, the Company shall not make any payment (whether individually or in the aggregate, but excluding any Permitted
Equity Issuance) above the amount covered or coverable by third-party insurance (from a creditworthy insurer that has agreed in
writing to provide coverage) in respect of a final, unappealable judgment, award or settlement in, or in order to pay, post, or
obtain a bond related to an appeal in, the Specified Litigation Matters (as defined below) without the prior written consent of
the Required Lenders; provided that the Company shall be permitted to make payments in respect of the Kogut Matter (as defined
below) for attorney fees and related costs not to exceed two million dollars ($2,000,000). For the avoidance of doubt, the failure
to comply with the Other Covenant contained in this Section 810(a)
during the Standstill Period shall result in an immediate Event of Default under the Loan Agreement; provided that, the
Other Covenant and other provisions of this Section 810(a)
shall terminate upon the occurrence of a Termination Event. The “Specified Litigation Matters” shall mean the
following litigation, and any litigation related to the following litigation that arises out of substantially the same facts and
circumstances: Akorn, Inc. v. Fresenius Kabi AG, 2018-0300-JTL (Del. Ch.), In re Akorn, Inc. Data Integrity Securities
Litigation, No. 18-cv-01713 (N.D. Ill.), In re Akorn, Inc. Derivative Litigation, No. 18-cv-07374 (N.D. Ill.), Kogut
v. Akorn, Inc., No. 646,174 (La. Dist. Ct.) (the “Kogut Matter”), and In re: Generic Pharmaceuticals
Pricing Antitrust Litigation, MDL No. 2724 (E.D. Pa.).

 

    	 	17	 

     

    

 

		(b)	Mandatory Prepayment. To the extent either (i)
                                                               a Toggle Event exists or (ii)  the Company commences the Chapter 11 Cases without an executed Stalking Horse APA with a
                                                               bid sufficient to pay all Obligations under the Loan Agreement (taking into account available cash in the case of cash free,
                                                               debt free bids), including, for the avoidance of doubt, the Call Protection, the Exit Payments, and all principal and accrued
                                                               interest, the Company shall prepay, on a ratable basis, within five (5) days prior to the commencement of the Chapter 11
                                                               Cases all outstanding Loans under the Loan Agreement in an amount that, after giving effect to such prepayment, leaves the
                                                               Company’s pro forma cash balance at an amount not to exceed $87,500,000. Notwithstanding anything to the contrary
                                                               contained herein, the Other Covenant contained in this Section 10(b) shall survive any Termination Event.

 

(b)Comprehensive
Amendment. The Company and the Required Lenders shall each negotiate in good faith to enter into a comprehensive
amendment of the Loan Agreement (the “Comprehensive Amendment”) on or prior to the Termination Date, which comprehensive
amendment shall be in form and substance acceptable to the Required
Lenders at such time, and which, in any event, shall include a modification to require affected Lender consent for modifications
to the pro rata sharing and waterfall provisions of the Loan Agreement. If a Comprehensive Amendment is not entered into by:

 

		(i)	November 15, 2019, then the Company shall (x) pay the Lenders
a one-time fee of 0.625% of the principal amount of the Loans outstanding
on the date thereof, which fee shall be payable in kind by capitalizing and adding such amount
to the outstanding principal balance of the Loans, and (y) pledge to the Administrative Agent (for
the benefit of the Secured Parties) all Equity Interests of any CFC or FSHCO held by any Loan Parties that are not pledged as of
such date; and

 

		(ii)	February 7, 2020 (the “Comprehensive Amendment Deadline”);
provided that (A) until the Comprehensive Amendment Deadline, the Company shall negotiate in good faith with the Ad Hoc
Group Advisors and/or the Ad Hoc Group with respect to the terms of the Comprehensive Amendment, (B) the Company shall make a proposal
to the Ad Hoc Group Advisors with respect to the Comprehensive Amendment by January 10, 2020, and (C) the
Company and the Ad Hoc Group Advisors and/or the Ad Hoc Group will reach
an agreement in principle with respect to the Comprehensive Amendment by February 5, 2020. Failure
to enter into a Comprehensive Amendment or to meet any of the other requirements of this Section 8(b) shall constitute an immediate
Event of Default under the Loan Agreement.

 

    	 	18	 

     

    

 

Notwithstanding
anything to the contrary contained herein, the Other Covenant contained in this Section 8(b) shall survive any Termination Event.

 

		(c)	(c)Payment of Ad Hoc Group Advisors’
Fees and Expenses. During the Standstill Period, the Company shall pay (a) the fees and expenses of Gibson Dunn, as counsel
to the Ad Hoc Group, in accordance with that certain Fee and Expense Reimbursement Agreement dated November 15, 2019, and (b) the
fees and expenses of Greenhill, as financial advisor to the Ad Hoc Group, in accordance with that certain engagement letter dated
January 29, 2019. For the avoidance of doubt, the failure to comply with the Other Covenant contained in this Section 810(c)
during the Standstill Period shall result in an immediate Event of Default under the Loan Agreement.

 

		11.	9. Conditions to the Effectiveness of this
Agreement. The effectiveness of this Agreement is subject to the satisfaction (or waiver in accordance with the terms hereof)
of each of the following conditions (the date on which such conditions are satisfied or waived, the “Effective Date”):

 

		(a)	(a)Delivery of Agreement. This Agreement,
duly authorized and executed by the Company, the Administrative Agent and the Standstill Lenders (constituting the Required Lenders
at such time), shall have been delivered to each of the Company, the Administrative Agent, and the Standstill Lenders.

 

		(b)	(b)No Default. Except for any Default
or Event of Default with respect to the Specified Matters, both immediately before and after giving effect to this Agreement, no
Default or Event of Default would then exist or would result therefrom.

 

		(c)	(c)Representations and Warranties.
Except with respect to the Specified Matters, all representations and warranties of the Company and the other Loan Parties set
forth herein, in the Loan Agreement and in any other Loan Document shall be true and correct in all material respects (or, with
respect to those representations and warranties expressly limited by their terms by materiality or material adverse effect qualifications,
in all respects) as of the Effective Date as if made on such date (except to extent that such representations and warranties expressly
relate to an earlier date, in which case they shall be true and correct in all material respects as of such date).

 

		(d)	(d)No Material Adverse Effect. Both
immediately before and after giving effect to this Agreement, no Material Adverse Effect shall have occurred and be continuing
or would result therefrom, excluding a Material Adverse Effect (if any) relating to any of the Specified Matters.

 

		(e)	(e)Closing Certificate. The Administrative
Agent shall have received a certificate, dated as of the date hereof, of a duly authorized officer of the Company, to the effect
that, at and as of the Effective Date, both before and after giving effect to this Agreement, the conditions specified in this
Section 911
(including clauses (b), (c), and (d) hereof) have been satisfied or waived.

 

    	 	19	 

     

    

 

		(f)	(f)Standstill Fee. The Company shall
have paid, and the Administrative Agent shall have received, for the ratable benefit of each Standstill Lender, a one-time fee
equal to 1.75% of the aggregate principal amount of the Loans of such Lender on the date hereof (the “Standstill Fee”),
which Standstill Fee shall be payable in kind by capitalizing and adding such amount to the outstanding principal balance of the
Loans on the Effective Date, and shall be deemed fully earned when paid, shall not be refundable for any reason, and shall be payable
without setoff, defense or counterclaim of any kind (and the provisions of Section 2.18(d) of the Loan Agreement are hereby waived
in connection with the payment of the Standstill Fee).

 

		(g)	(g)Fees and Expenses. The Company shall
(i) pay or reimburse all reasonable and documented fees and expenses for Gibson Dunn, as legal advisor to the Ad Hoc Group, and
Greenhill, as financial advisor to the Ad Hoc Group, on the terms set forth herein to the extent invoiced at least one (1) Business
Day prior to the Effective Date and (ii) pay or reimburse all reasonable and documented out-of-pocket fees and expenses of the
Administrative Agent in connection with this Agreement and the other Loan Documents (including reasonable out-of-pocket fees, costs,
and expenses of outside counsel for the Administrative Agent) to the extent invoiced at least one (1) Business Day prior to the
Effective Date.

 

		(h)	(h)Material Subsidiary Refresh. The
Company shall (i) deliver duly executed Joinder Agreements from all Material Subsidiaries that were not Loan Parties prior to the
Effective Date, and (ii) to the extent any or all Domestic Subsidiaries that were not Material Subsidiaries prior to the Effective
Date exceed ten percent (10%) of EBITDA for the four consecutive fiscal quarter period most recently ended or ten percent (10%)
of Total Assets as of the end of such period, certify that the Company has designated Domestic Subsidiaries as Material Subsidiaries
to eliminate such excess, and any Domestic Subsidiaries so designated shall thereafter constitute Material Subsidiaries for all
purposes under the Loan Agreement and the other Loan Documents.

 

		12.	10.Representations and Warranties.

 

		(a)	(a)Each of the Company and the other Loan
Parties hereby represents and warrants to the Administrative Agent and the Lenders that as of the Effective Date:

 

		(i)	(i)the execution, delivery and performance
of this Agreement and the Company’s and Loan Parties’ obligations hereunder have been duly authorized by all necessary
corporate or limited liability company action (as applicable);

 

		(ii)	(ii)this Agreement has been duly executed
and delivered by the Company and each other Loan Party and constitutes, when executed and delivered by the other parties hereto,
a legal, valid and binding obligation of the Company and such Loan Party, enforceable against the Company or such Loan Party in
accordance with its terms, except as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium
or other laws affecting creditors’ rights generally and subject to general principles of equity, regardless of whether considered
in a proceeding in equity or at law;

 

    	 	20	 

     

    

 

		(iii)	(iii)no approval, consent, exemption, authorization,
or other action by, or notice to, or filing with, any Governmental Authority or any other Person is necessary or required in connection
with (a) the execution, delivery or performance by, or enforcement against, any Loan Party of this Agreement, except for (i) the
approvals, consents, exemptions, authorizations, actions, notices and filings which have been duly obtained, taken, given or made
and are in full force and effect and (ii) those approvals, consents, exemptions, authorizations or other actions, notices or filings,
the failure to obtain or make which could not reasonably be expected to have a Material Adverse Effect or (b) the exercise by any
Lender of its rights under this Agreement;

 

		(iv)	(iv)except with respect to the Specified Matters,
each of the representations and warranties made by any Loan Party set forth in Article III of the Loan Agreement or in any other
Loan Document is true and correct in all material respects (unless otherwise qualified by materiality or the occurrence of a Material
Adverse Effect, in which case such representation and warranty is true and correct in all respects) as of the date hereof with
the same effect as though made on and as of the date hereof, except to the extent such representations and warranties expressly
relate to earlier dates; and

 

		(v)	(v)no Default or Event of Default has occurred
and is continuing other than any Default or Event of Default with respect to the Specified Matters.

 

		(b)	(b)Each of the Standstill Parties hereby represents
and warrants that each of the following statements is true, accurate and complete as to such party as of the date hereof:

 

		(i)	(i)such Standstill Party has carefully read
and fully understands all of the terms and conditions of this Agreement;

 

		(ii)	(ii)such Standstill Party has consulted with,
or had a full and fair opportunity to consult with, an attorney regarding the terms and conditions of this Agreement;

 

		(iii)	(iii)such Standstill Party has had a full
and fair opportunity to participate in the drafting of this Agreement;

 

    	 	21	 

     

    

 

		(iv)	(iv)such Standstill Party is freely, voluntarily
and knowingly entering into this Agreement; and

 

		(v)	(v)in entering into this Agreement, such Standstill
Party has not relied upon any representation, warranty, covenant or agreement not expressly set forth herein or in the other Loan
Documents.

 

		13.	11.Amendments to the Loan Agreement.
Effective as of the Effective Date, the Loan Agreement is hereby amended as set forth below:

 

		(a)	(a)Section 1.01 of the Loan Agreement is hereby
amended to add the definitions of “Exit Payments,”
 “First Amendment,” “First Amendment Effective Date,” “Sale
Process,” “Second Amendment,” “Second Amendment Effective Date,” “Standstill
Event of Default,” and
“Standstill Period,”
 “Third Amendment," “Third Amendment Effective Date” as follows:

 

		(i)	Ad Hoc Group: as defined in the Third Amendment.

 

		(ii)	Ad Hoc Group Advisors: as defined in the Third Amendment.

 

		(iii)	Exit Payments: (a) If the Sale Process is
approved by the Bankruptcy Court on or prior to July 15, 2020, then (i) if the Sale Process is consummated on or prior to July
15, 2020, 0.50% of the aggregate principal amount of the
Loans of the applicable Lender then outstanding (i.e.,
50 basis points), or (ii) if the Sale Process is consummated after July 15, 2020, 0.75% of the aggregate principal amount of the
Loans of the applicable Lender then outstanding (i.e., 75 basis points); and (b) If the Sale Process is not approved by
the Bankruptcy Court on or prior to July 15, 2020, then (i) if the Sale Process is consummated on or prior to August 15, 2020,
1.00% of the aggregate principal amount of the Loans of such Lender then outstanding (i.e., 100 basis points), or (ii) if
the Sale Process is consummated after August 15, 2020, 2.00% of the aggregate principal amount of the Loans of such Lender then
outstanding (i.e., 200 basis points).

 

		(ii)	(i)First Amendment: that certain Standstill
Agreement and First Amendment to Loan Agreement dated as of May 6, 2019, among the Borrower, the Lenders party thereto, and the
Administrative Agent.

 

		(iii)	(ii)First Amendment Effective Date:
the date on which the conditions precedent specified in Section 9 of the First Amendment have been satisfied or waived in accordance
with the terms thereof.

 

		(iv)	Sale Process: as defined in the Third Amendment.

 

		(v)	(iii)Second Amendment: that certain
First Amendment to Standstill Agreement and Second Amendment to Loan Agreement dated as of December 15, 2019, among the Borrower,
the Lenders party thereto, and the Administrative Agent.

 

    	 	22	 

     

    

 

		(vi)	(iv)Second Amendment Effective Date:
the date on which the conditions precedent specified in Section 3 of the Second Amendment have been satisfied or waived in accordance
with the terms thereof.

 

		(vii)	(iii)Standstill Event of Default: as
defined in the First Amendment.

 

(ivviii)Standstill
Period: as defined in the SecondThird
Amendment.

 

		(ix)	Third Amendment: that certain Second Amendment to
Standstill Agreement and Third Amendment to Loan Agreement dated as of February 12, 2019, among the Borrower, the Lenders party
thereto, and the Administrative Agent.

 

		(x)	Third Amendment Effective Date: the date on which
the conditions precedent specified in Section 3 of the Third Amendment have been satisfied or waived in accordance with the terms
thereof.

 

		(b)	(b)Section
1.01 of the Loan Agreement is hereby amended: 

 

(i)                
(i) by
amending and restating the definition of “Applicable Rate” to read as follows:

 

(a)              
(a) prior to the First Amendment Effective Date, with respect to
any Eurodollar Loan or any ABR Loan, as the case may be, the applicable rate per annum set forth below under the caption “Eurodollar
Spread” or “ABR Spread”, as the case may be, based upon the Ratings Level applicable on such date:

 

	Ratings Level	
        Index Ratings

        (Moody’s/S&P)
	Eurodollar Spread	ABR Spread
	Level I	B1/B+ or higher	4.25%	3.25%
	Level II	B2/B	4.75%	3.75%
	Level III	B3/B- or lower	5.50%	4.50%

 

    	 	23	 

     

    

 

(b)              
(b) commencing on (and including) the First Amendment Effective
Date and ending on (but excluding) the Second Amendment Effective Date, with respect to any Eurodollar Loan or any ABR Loan, as
the case may be, the applicable rate per annum set forth below under the caption “Eurodollar Spread” or “ABR
Spread”, as the case may be, based upon the Ratings Level applicable on such date:

 

	Ratings Level	
        Index Ratings

        (Moody’s/S&P)
	Eurodollar Spread	ABR Spread
	Level I	B1/B+ or higher	5.75%	4.75%
	Level II	B2/B	6.25%	5.25%
	Level III	B3/B- or lower	7.00%	6.00%

 

provided that 0.75% (i.e.,
75 basis points) of such Applicable Rate shall be payable in kind by capitalizing and adding such amount to the outstanding principal
balance of the Loans on the applicable Interest Payment Date);

 

 

(c)              
(c) commencing on (and including) the Second Amendment Effective
Date and ending on (but excluding) the date of a Standstill Event of Default (i) 9.00% per annum for any ABR Loan, and (ii) 10.00%
per annum for any Eurodollar Loan; provided that 0.75% (i.e., 75 basis points) of such Applicable Rate shall be payable
in kind by capitalizing and adding such amount to the outstanding principal balance of the Loans on the applicable Interest Payment
Date); and 

 

(d)              
if at any time during the Sale Process, (i) no bids exist which are sufficient
to pay all Obligations (including, for the avoidance of doubt, the Call Protection and Exit Payments) or (ii) no further third-party
bids exist, then then from the occurrence of such date until the date of a Standstill Event of Default, (A) 11.50% per annum for
any ABR Loan, and (B) 12.50% per annum for any Eurodollar Loan; provided that 0.75% (i.e., 75 basis points) of such
Applicable Rate shall be payable in kind by capitalizing
and adding such amount to the outstanding principal balance of the Loans on
the applicable Interest Payment Date);

 

(e)              
(d) commencing on (and including) the date of a Standstill Event
of Default, (i) 90.50%
forshall be added
to the then in effect Applicable Rate of any ABR Loan, and (ii) 10.50% for any
or Eurodollar Loan; provided that 1.25% (i.e.,
125 basis points) of such Applicable Rate shall be payable in kind by capitalizing and adding such amount to the outstanding principal
balance of the Loans on the applicable Interest Payment Date); provided further that the Applicable Rate pursuant to this
section (de)
shall remain payable and continue to accrue following a Termination Event and the Termination Date.;
and

 

(f)              
upon the occurrence of any of the events described in sections (d)(i), (d)(ii),
and (e) above, Required Lenders shall give notice to the Agent, and upon receipt of such notice, the Agent shall be authorized
to accrue and pay such additional amounts to the Lenders, as and when applicable.

 

(ii)           by
amending and restating the definition of “Interest Payment Date” by adding the following proviso to the end
of the definition:

 

“provided that,
commencing on the Second Amendment Effective Date, the Interest Payment Date for ABR Loans and Eurodollar Loans shall be the first
Business Day of each month.”

 

    	 	24	 

     

    

 

		(c)	Section 2.09(b)(i) of the Loan Agreement is hereby
amended and restated in its entirety to read as follows:

 

“(i)
no Event of Default shall have occurred and be continuing or would result therefrom, except in the case of an Incremental Term
Facility incurred to finance a Permitted Acquisition or other Permitted Investment, such requirement shall be subject to customary
 “certain funds provisions” if otherwise agreed by the Lenders providing such Incremental Term Facility (but in any
event shall be subject to no Event of Default as described in clause (a), (b), (h), (i), (j), or (r) of Article VII having occurred
or be continuing);” 

  

		(d)	(c)Section 2.11(a) of the Loan Agreement is
hereby amended by deleting the word “and,” prior to clause (3) and adding the following as clause (4):

 

“and (4) notwithstanding
anything in this Agreement to the contrary, in the event of anyupon
maturity, acceleration, termination, conversion, and/or payment, prepayment,
or repayment for any reason (but excluding any mandatory prepayments under Section 2.11(c) or
2.11(d)) of the Loans during the Standstill Period (including,
without limitation, upon or after the maturity or acceleration of the Loans as a result of the occurrence of any Event of Default
or otherwise, to the extent any such acceleration is not prohibited by the terms of Section 3
of the First Amendment (as amended by the Second Amendment and
the Third Amendment)), the Company shall pay the Lenders (a)
a premium of 1.500%(i)
on or prior to June 1, 2020, 1.500%, (ii) after June 1, 2020, but on or prior to July 30, 2020, 1.00%, and (iii) after July 30,
2020, 0.500%, in each case of clauses (i), (ii), and (iii) above, of the outstanding principal amount
of thesuch
Loans so prepaidon
the date of such maturity, acceleration, termination, conversion, or payment, prepayment, or repayment (such premium,
the “Call Protection”) plus
(b) any Exit Payments, calculated as of the date of any such prepayment, repayment,
or acceleration.”thereof; provided that,
for the avoidance of doubt, the Call Protection and Exit Payments shall constitute Obligations under the Loan Agreement, including
without limitation, in connection with the Lenders’ right to credit bid in any proceeding under Chapter 11 of Title 11 of
the United States Code (the “Bankruptcy Code”).”

 

		(e)	(d) Section 2.13(c) of the Loan Agreement
is hereby amended and restated as follows:

 

“(c) Notwithstanding the
foregoing, upon the occurrence of any Event of Default; for avoidance
of doubt, to include the right to accelerate on account of an Event of Default under Article VII(r), the Loans and all
other Obligations, shall bear interest at a rate per annum equal to 2.00% plus the Applicable Rate then in effect.”

 

		(e)	Section 5.01(a) is hereby amended to add the following
proviso at the end of the Section:

 

“provided
that, the Borrower shall not be required to deliver any items in connection with this Section 5.01(a) without a “going concern”
or like qualification or exception for such year to the extent the Borrower has delivered a Quality of Earnings report to the Ad
Hoc Group Advisors;”

  

    	 	25	 

     

    

 

		(f)	Article V is hereby amended by adding a new Section
5.13 as follows:

 

“Prior
Written Notice of Bankruptcy Filing. The Loan Parties and Restricted Subsidiaries, as applicable, shall provide the Ad Hoc Group
Advisors with written notice at least seven (7) Business Days’ prior to commencing any proceedings under Chapter 7 or Chapter
11 of the Bankruptcy Code; provided that, following receipt of such written notice by the Ad Hoc Group Advisors, the Required
Lenders shall be entitled to accelerate the Obligations then outstanding under this Agreement one (1) Business Day prior to the
date of commencement of such proceedings as specified in such notice.”

 

		(g)	Article VII is hereby amended as follows:

 

(i)             
by deleting the word “or” at the end of Article VII(p);

 

(ii)            
by adding the word “or” at the end of Article VII(q);

 

(iii)           
by adding a new Article VII(r) as follows:

 

(iv)            
“any Loan Party or Restricted Subsidiary shall fail to observe or perform
any covenant, condition, or agreement contained in Section 5.13.”

 

(v)              
by amending and restating the final paragraph of Article VII as follows:

 

(vi)            
“then, and in every such event (other than an event with respect to
the Borrower described in clause (h), (i) or (r) of this Article), and at any time thereafter during the continuance of such event,
the Administrative Agent may, and at the request of the Required Lenders shall, by notice to the Borrower, take the following action:
declare the Loans then outstanding to be due and payable in whole (or in part, but ratably as among the Loans at the time outstanding,
in which case any principal not so declared to be due and payable may thereafter be declared to be due and payable), whereupon
the principal of the Loans so declared to be due and payable, together with accrued interest thereon and all fees and other obligations
of the Borrower accrued hereunder, shall become due and payable immediately, without presentment, demand, protest or other notice
of any kind, all of which are hereby waived by the Borrower; and in the case of any event with respect to the Borrower described
in clause (h), (i), or (r) of this Article, the principal of the Loans then outstanding, together with accrued interest thereon
and all fees and other obligations of the Borrower accrued hereunder, shall automatically become due and payable, without presentment,
demand, protest or other notice of any kind, all of which are hereby waived by the Borrower. Upon the occurrence and the continuance
of an Event of Default, the Administrative Agent may, and at the request of the Required Lenders shall, exercise any rights and
remedies provided to the Administrative Agent under the Loan Documents or at law or equity, including all remedies provided under
the UCC.

 

    	 	26	 

     

    

 

		(h)	(e)Section 8.06 of the Loan Agreement is hereby
amended to delete the second sentence in its entirety and replace it with the following sentence:

 

Upon any such resignation, the
Required Lenders shall have the right to appoint a successor.

 

		(i)	(f)Section 9.04(b)(i)(A) is amended and restated
as follows:

 

“[Reserved];
and”

 

		(j)	(g)Section 9.04(e) is amended and restated
in its entirety as follows:

 

“(e) Notwithstanding
anything to the contrary contained herein, (x) no Lender may assign all or a portion of its rights and obligations under this Agreement
in respect of its Loans to the Borrower, any Restricted Subsidiary, or any Unrestricted Subsidiary without the prior written consent
of the Required Lenders and (y) the Borrower, any Restricted Subsidiary, or any Unrestricted Subsidiary may not purchase or prepay
Loans without the prior written consent of the Required Lenders in each case in accordance with Section 2.11(g); provided
that (i) any Loans acquired by the Borrower, any Restricted Subsidiary, or any Unrestricted Subsidiary shall be automatically retired
and cancelled concurrently with the acquisition thereof, and (ii) no Default or Event of Default shall have occurred and be continuing
at the time of such assignment or sale, nor would result therefrom.”

 

		(k)	(f)For the avoidance of doubt, the amendments
set forth in this Section 114
shall survive any termination of this Agreement.

 

		14.	12.Direction to the Administrative Agent;
Indemnity. Each Lender party hereto hereby consents, authorizes and directs the Administrative Agent to execute and deliver
this Agreement and to take the actions contemplated herein. Each Standstill Party confirms and agrees that (i) the Administrative
Agent is only entering into this Agreement at the direction of the Required Lenders, (ii) subject to the terms of the Loan Agreement
and the other Loan Documents (including this Agreement), any action or inaction taken hereunder by the Administrative Agent shall
be at the express direction of the Required Lenders (including, without limitation, any determination that a Default, Event of
Default, and/or Standstill Event of Default has occurred and/or that the Standstill Period has ended) and (iii) the indemnification
provisions set forth in the Loan Agreement and the other Loan Documents (including, without limitation, the indemnification provisions
set forth in Sections 9.03(b) and 9.03(c) of the Loan Agreement) shall apply to actions taken by the Administrative Agent in connection
with this Agreement.

 

		15.	13.Miscellaneous.

 

		(a)	(a)Amendment. No provision or term
hereof may be amended, modified or otherwise changed except by an instrument in writing, specifying the same, duly executed by
the requisite parties in accordance with Section 9.02 of the Loan Agreement. For the avoidance of doubt, any extension of the Termination
Date hereunder shall not constitute a postponement of any scheduled date of payment of the principal amount of any Loan, or the
date for the payment of any interest, fees or other Obligations, or a waiver or excuse of any such payment, in each case for purposes
of Section 9.02(b)(iii) of the Loan Agreement.

 

    	 	27	 

     

    

 

		(b)	(b)GOVERNING LAW; SUBMISSION TO JURISDICTION;
SELECTION OF FORUM. THIS AGREEMENT IS TO BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK
APPLICABLE TO CONTRACTS MADE AND TO BE PERFORMED IN SUCH STATE, WITHOUT GIVING EFFECT TO THE CONFLICT OF LAWS PRINCIPLES THEREOF.
Each Standstill Party hereto agrees that it shall bring any action or proceeding in respect of any claim arising out of or related
to this Agreement in any U.S. Federal (or, if such court lacks subject matter jurisdiction, New York State) court sitting in New
York, New York (or court of proper appellate jurisdiction) (the “Chosen Courts”), and solely in connection with
claims arising under this Agreement: (a) irrevocably submits to the exclusive jurisdiction of the Chosen Courts; (b) waives any
objection to laying venue in any such action or proceeding in the Chosen Court; and (c) waives any objection that the Chosen Courts
are an inconvenient forum or does not have personal jurisdiction over any Standstill Party hereto or constitutional authority to
finally adjudicate the matter; provided that, for the avoidance of doubt, this Section 135(b)
does not supersede, amend or modify the provisions of Section 9.09 of the Loan Agreement, which shall continue to apply in accordance
with its terms, including with respect to any Defaults or Events of Default asserted under the Loan Agreement.

  

		(c)	(c)Trial by Jury Waiver. EACH Standstill
PARTY HERETO IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT
OR THE TRANSACTIONS CONTEMPLATED HEREBY.

  

		(d)	(d)Entire Agreement. This Agreement,
inclusive of its schedule, represents the entire understanding and agreement among the Standstill Parties with respect to the subject
matter hereof, and supersedes all prior agreements, if any, among them with respect thereto. Each of the Standstill Parties acknowledges
that it has not relied upon any representations by any other Standstill Party or anyone acting on behalf of any Standstill Party
in entering into this Agreement.

 

		(e)	(e)Counterparts. This Agreement may
be executed in as many counterparts as may be convenient or required. It shall not be necessary that the signature of, or on behalf
of, each party, or that the signature of all persons required to bind any party, appear on each counterpart. Signatures to this
Agreement, any amendment hereof and any notice given hereunder, transmitted by telecopy or PDF, and the photocopy of any signature
page, shall be valid and effective to bind the Standstill Party so signing. All such counterparts shall collectively constitute
a single instrument.

 

		(f)	(f)Waiver. Any provision hereof may
be waived only by written instrument making specific reference to this Agreement signed by the requisite parties in accordance
with Section 9.02 of the Loan Agreement. The waiver by any Standstill Party hereto of a breach of any provision of this Agreement
shall not operate or be construed as a further or continuing waiver of such breach or as a waiver of any other or subsequent breach.
No failure on the part of any Standstill Party to exercise, and no delay in exercising, any right, power or remedy hereunder shall
operate as a waiver thereof, nor shall any single or partial exercise of such right, power or remedy by such Standstill Party preclude
any other or further exercise thereof or the exercise of any other right, power or remedy.

 

    	 	28	 

     

    

 

		(g)	(g)Interpretation. This Agreement is
the result of negotiation and, accordingly, no presumption or burden of proof will arise with respect to any ambiguity or question
of intent concerning this Agreement favoring or disfavoring any party to this Agreement by virtue of the authorship of any provision
of this Agreement.

 

		(h)	(h)Reliance.

 

		(i)	(i)The Loan Parties acknowledge and agree
that, notwithstanding anything to the contrary set forth in this Agreement, the Administrative Agent and the Standstill Lenders
do not have, nor shall have, an obligation to: (A) subject to the obligations set forth in Section 810(b)
hereof, amend the Loan Agreement or any other Loan Document or otherwise restructure the Obligations; (B) other than with respect
to any continuation of outstanding Eurodollar Loans or any conversion of outstanding ABR Loans into Eurodollar Loans, make any
further loans, advances or extension of credit to or for the benefit of the Loan Parties, (C) extend the Standstill Period; (D)
refrain from terminating the Standstill Period upon the occurrence of any Standstill Event of Default or (E) enter into any other
instruments, agreements or documents regarding any of the same with the Loan Parties, and that neither the Administrative Agent
nor the Lenders, nor any of their respective representatives, have made any agreements with, or commitments or representations
or warranties to, the Loan Parties (either in writing or orally), other than as expressly stated in this Agreement.

 

		(ii)	(ii)The Loan Parties expressly understand
and further agree that the Administrative Agent and the Lenders are relying on all terms, covenants, conditions, warranties and
representations set forth in this Agreement as a material inducement to the Administrative Agent and the Lenders to enter into
this Agreement and to standstill from exercising the Administrative Agent’s and the Lenders’ rights and remedies as
specifically set forth herein.

 

		(i)	(i)Cumulative Remedies.

 

		(i)	(i)Except as otherwise specifically provided
in this Agreement, the rights, powers, authorities, remedies, interests and benefits conferred upon the Administrative Agent and
the Lenders by and as provided in this Agreement are intended to supplement, and be in addition to (and, except as expressly set
forth herein, shall not in any way replace, supersede, amend, limit or restrict), the rights, powers, authorities, remedies, interests,
and benefits conferred by the Loan Agreement and the other Loan Documents.

 

    	 	29	 

     

    

 

		(ii)	(ii)No delay on the part of the Administrative
Agent or the Lenders in the exercise of any power, right or remedy under this Agreement, the Loan Agreement or any other Loan Document
at any time shall operate as a waiver thereof, and no single or partial exercise by the Administrative Agent or the Standstill
Lenders of any power, right or remedy shall preclude other or further exercise thereof or the exercise of any other power, right
or remedy.

 

		(j)	(j)Relationship. The Loan Parties agree
that the relationship between the Administrative Agent and the Lenders, on one hand, and the Loan Parties, on the other hand, is
that of creditor and debtor and not that of partners or joint venturers. This Agreement does not constitute a partnership agreement,
or any other association between the Administrative Agent, the Lenders and the Loan Parties. The Loan Parties acknowledge that
the Administrative Agent and the Lenders have acted at all times only as a creditor to the Loan Parties within the normal and usual
scope of the activities normally undertaken by a creditor and in no event have the Administrative Agent and the Lenders attempted
to exercise any control over the Company or any other Loan Party or their respective businesses or affairs. The Loan Parties further
acknowledge that the Administrative Agent and Lenders have not taken or failed to take any action under or in connection with their
rights under the Loan Agreement and the other Loan Documents that in any way or to any extent have interfered with or adversely
affected the Loan Parties’ ownership of the Collateral.

 

		(k)	(k)Ad Hoc Group Actions and Composition.

 

		(i)	(i)Any action by the Ad Hoc Group with respect
to this Agreement (which, for the avoidance of doubt, is limited to actions under Section 56(k)
and Section 810(a)
hereof) may be taken by members of the Ad Hoc Group with Credit Exposures representing more than fifty percent (50%) of the Aggregate
Credit Exposures of the Ad Hoc Group taken as a whole (the “Required Ad Hoc Group Members”). Any action taken
hereunder by the Required Ad Hoc Group Members shall bind all members of the Ad Hoc Group.

 

		(ii)	(ii)In the event that, at any time on or after
the Effective Date, the Ad Hoc Group does not act on behalf of the Required Lenders, all references to the “Ad Hoc Group”
in this Agreement shall be deemed to refer to the Required Lenders.

 

		(l)	(l)No Third Party Beneficiaries. This
Agreement is made and entered into for the sole protection and benefit of the parties hereto and no other person or entity shall
have any right of action hereon, right to claim any right or benefit from the terms contained herein, or be deemed a third party
beneficiary hereunder.

 

    	 	30	 

     

    

 

		(m)	(m)Severability. Whenever possible,
each provision of this Agreement shall be interpreted in such manner as to be effective and valid under applicable law, but if
any provision of this Agreement shall be prohibited by or invalid under applicable law, such provision shall be ineffective only
to the extent of such prohibition or invalidity, without invalidating the remainder of such provision or the remaining provisions
of this Agreement, it being the parties’ intention that each and every provision of this Agreement be enforced to the fullest
extent permitted by applicable law.

 

		(n)	(n)Successors and Assigns. This Agreement
shall be binding upon, and shall inure to the benefit of the Lenders, the Company, and the other Loan Parties and their respective
successors and assigns, except that the Company and the other Loan Parties may not assign their rights under this Agreement without
the prior written consent of the Required Lenders.

 

		(o)	(o)Voluntary Agreement. The Loan Parties,
the Administrative Agent and the Standstill Lenders represent and warrant that they are represented by legal counsel of their choice,
that they have consulted with such counsel regarding this Agreement, that they are fully aware of the terms and provisions contained
herein and of their effect and that they have voluntarily and without coercion or duress of any kind entered into this Agreement.

 

		(p)	(p)Integration. This Agreement and
the instruments, agreements and documents referred to in this Agreement shall be deemed incorporated into and made a part of the
Loan Agreement and the other Loan Documents. This Agreement shall be deemed to be a Loan Document as that term is defined in the
Loan Agreement. All such instruments, agreements and documents, and this Agreement, shall be construed as integrated and complementary
of each other, and, except as otherwise specifically provided in this Agreement, as augmenting and not restricting the Administrative
Agent’s or the Lenders’ rights, remedies, benefits and security. If after applying the foregoing an inconsistency still
exists, the provisions of this Agreement shall constitute an amendment to the Loan Agreement and shall control; provided, however,
that, for the avoidance of doubt, the provisions hereof that do not survive termination of this Agreement or the Standstill Period
shall not be deemed to amend the terms of the Loan Agreement following such termination. References in the Loan Agreement to this
 “Agreement,” “herein,” “hereof” or “hereunder” or references to the Loan Agreement
in any other agreement or document shall, in each case, be deemed to refer to the Loan Agreement as amended hereby.

 

		(q)	(q)No Novation. This Agreement shall
not extinguish the Loans or other Obligations outstanding under the Loan Agreement and/or any of the other Loan Documents as in
effect prior to the effectiveness of this Agreement. Nothing herein contained shall be construed as a substitution, novation or
repayment of the Loans or other Obligations outstanding under the Loan Agreement and/or any of the other Loan Documents as in effect
prior to the effectiveness of this Agreement, all of which shall remain outstanding in full force and effect after the effectiveness
of this Agreement, as amended hereby.

 

    	 	31	 

     

    

 

		(r)	(r)Notices. All notices hereunder shall
be deemed given if in writing and delivered by electronic mail, courier, or registered or certified mail (return receipt requested)
to the following addresses (or at such other addresses as shall be specified by like notice):

 

		i.	i. if to the Company:

 

Akorn, Inc.

1925 West Field Court, Suite 300

Lake Forest, IL 60045

Attention: Duane Portwood, Chief Financial Officer

Email address: duane.portwood@akorn.com

 

Copies to:

 

Kirkland & Ellis LLP

601 Lexington Avenue

New York, NY 10022

Attention: Patrick J. Nash; Nicole L. Greenblatt

Email address: patrick.nash@kirkland.com;
nicole.greenblat@kirkland.com

 

		ii.	ii.if to the Ad Hoc Group:

 

Gibson, Dunn & Crutcher LLP

200 Park Avenue

New York, NY 10166

Attention: Scott J. Greenberg

Email address: sgreenberg@gibsondunn.com

 

		iii.	iii.if to any other Lender party hereto, to such address as may be furnished
by such Lender from time to time to each of the Standstill Parties.

 

iv.         
iv.if to the Administrative Agent:

 

JPMorgan Chase Bank, N.A.

10 S. Dearborn Street

,
9th Floor,

Chicago, IL 60603

Attention: Justin Martin

Email address: justin.2.martin@jpmorgan.com

 

Copy to:

 

Latham & Watkins LLP

330 North Wabash Avenue, Suite 2800

Chicago, IL 60611

Attention: Zulf Bokhari

Email address: zulf.bokhari@lw.com

 

Any notice
given by delivery, mail (electronic or otherwise), or courier shall be effective when received.

 

    	 	32	 

     

    

 

 

[Signature Pages to Follow]

 

 

     

     

    

 

 

IN WITNESS WHEREOF,
each of the undersigned, intending to be legally bound hereby, has executed this Agreement below effective as of the Effective
Date.

 

	 	THE COMPANY:
	 	 
	 	AKORN, INC.
	 	 
	 	By	 
	 	 	Name:	Duane Portwood
	 	 	Title:	 Chief Financial Officer
	 	 
	 	OTHER LOAN PARTIES:
	 	 
	 	ADVANCED
    VISION RESEARCH, INC.
	 	 
	 	By	 
	 	 	Name:
	 	 	Title:
	 	 
	 	AKORN (NEW JERSEY), INC.
	 	 
	 	By	 
	 	 	Name:
	 	 	Title:
	 	 
	 	AKORN ANIMAL HEALTH, INC.
	 	 
	 	By	 
	 	 	Name:
	 	 	Title:
	 	 
	 	AKORN OPHTHALMICS, INC.
	 	 
	 	By	 
	 	 	Name:
	 	 	Title:
	 	 
	 	AKORN SALES, INC.
	 	 
	 	By	 
	 	 	Name:
	 	 	Title:            

 

     

     

    

 

	 	INSPIRE PHARMACEUTICALS, INC.
	 	 
	 	By	 
	 	 	Name:	 
	 	 	Title:	 
	 	 
	 	OAK PHARMACEUTICALS, INC.
	 	 
	 	By	 
	 	 	Name:	 
	 	 	Title:	 
	 	 
	 	HI-TECH PHARMACAL CO., INC.
	 	 
	 	By	 
	 	 	Name:	 
	 	 	Title:	 
	 	 
	 	10 EDISON STREET LLC
	 	 
	 	By	 
	 	 	Name:	 
	 	 	Title:	 
	 	 
	 	13 EDISON STREET LLC
	 	 
	 	By	 
	 	 	Name:	 
	 	 	Title:	 
	 	 
	 	VPI HOLDINGS CORP.
	 	 
	 	By	 
	 	 	Name:	 
	 	 	Title:	 
	 	 
	 	VPI HOLDINGS SUB, LLC
	 	 
	 	By	 
	 	 	Name:	                             
	 	 	Title:	 

 

     

     

    

 

	 	VERSAPHARM INCORPORATED
	 	 
	 	By	 
	 	 	Name:
	 	 	Title:                           
	 	 
	 	COVENANT PHARMA INC.
	 	 
	 	By	 
	 	 	Name:
	 	 	Title:
	 	 
	 	OLTA PHARMACEUTICALS CORP.
	 	 
	 	By	 
	 	 	Name:
	 	 	Title:
	 	 
	 	CLOVER PHARMACEUTICALS CORP.
	 	 
	 	By	 
	 	 	Name:
	 	 	Title:
	 	 
	 	JPMORGAN CHASE BANK, N.A.,
	 	as Administrative Agent
	 	 
	 	By	 
	 	 	Name:
	 	 	Title:
	 	 
	 	[LENDERS]
	 	 
	 	By	 
	 	 	Name:
	 	 	Title:

 

     

     

    

 

Exhibit A

Ad Hoc Group

 

		1.	Eaton Vance Management

		2.	CIFC Asset Management

		3.	The Carlyle Group

		4.	Funds, accounts, and other investment vehicles managed, advised, or sub-advised by Credit Suisse Asset Management, LLC

		5.	Certain funds and accounts under management by BlackRock Financial Management, Inc. and its affiliates

		6.	Western Asset Management

		7.	GSO Capital Partners

		8.	PineBridge Investments

		9.	Stonehill Capital Management

		10.	BlueMountain Capital Management
	 	11.	Canyon Capital
	 	12.	Symphony Asset Management
	 	13.	MidOcean Partners

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00304-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00304-of-00352.parquet"}]]