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Entry Into A Material Definitive

On November 13, 2015, Akorn, Inc. (the Company or Akorn) entered into (i) an ABL Consent Memorandum (the ABL Consent) in connection with its senior secured revolving credit facility made pursuant to that certain Credit Agreement, dated as of April 17, 2014, by and among the Company, as borrower, the other loan parties party thereto, Bank of America, N.A., Wells Fargo Bank, National Association, and JPMorgan Chase Bank, N.A., as lenders (the ABL Lenders) and JPMorgan Chase Bank, N.A. (JPMCB), in its capacity as administrative agent (as amended from time to time, the ABL Credit Agreement) and (ii) a Term Loan Consent Memorandum (the Term Loan Consent, and together with the ABL Consent, the Consents) relating to its senior secured term loan facility made pursuant to that certain Loan Agreement, dated as of April 17, 2014, by and among the Company, as borrower, the other loan parties party thereto, the lenders party thereto from time to time (the Term Lenders and, together with the ABL Lenders, the Lenders) and JPMCB, as administrative agent (as amended from time to time, the Term Loan Agreement).

As previously reported in its Current Report on Form 8-K filed with the Securities and Exchange Commission (the SEC) on May 19, 2015, the Company entered into consent memoranda with the requisite Term Lenders under the Term Loan Agreement (the Existing Term Loan Consent) and the requisite ABL Lenders under the ABL Credit Agreement (the Existing ABL Consent, and together with the Existing Term Loan Consent, the Existing Consents) in connection with the Companys previously reported intention to restate certain financial statements. The Existing Consents waived, among other things, certain defaults or events of default that may have occurred or may occur as a result of (i) the anticipated restatements (the Restatements) of its consolidated financial statements for the fiscal year ended December 31, 2014, and the fiscal quarters ended June 30, 2014, and September 30, 2014 (collectively, the Restated Financial Statements) and (ii) certain delays in the Companys delivery of financial statements to the Lenders and/or the filing of Quarterly Reports on Form 10-Q, in each case as a result of the Restatements. The Existing Consents required the Company to furnish the Lenders the required financial statements by no later than November 13, 2015.

In anticipation of the expiration of the Existing Consents, the Company entered into the Consents which, as described in greater detail below, provide consent waivers from the requisite Term Lenders under the Term Loan Agreement and the requisite ABL Lenders under the ABL Credit Agreement with respect to, among other things, certain defaults or events of default that may have occurred or may occur as a result of (i) the Restatements and (ii) certain delays in the Companys delivery of financial statements to the Lenders and/or the filing of Quarterly Reports on Form 10-Q and its Annual Report on Form 10-K for the fiscal year ended December 31, 2015, in each case as a result of the Restatements.

ABL Consent

Pursuant to the ABL Consent, the requisite ABL Lenders under the ABL Credit Agreement have agreed to waive certain past, present or future Defaults and Events of Default (each as defined in the ABL Credit Agreement) that may have occurred or may occur, in each case, resulting from, among other things, (i) any of the Companys financial...


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