AKORN INC
AMENDMENT #10 TO THE PRE-NEGOTIATION AGREEMENT
<DOCUMENT>
<TYPE>EX-10.37
<SEQUENCE>12
<FILENAME>c77055exv10w37.txt
<DESCRIPTION>AMENDMENT #10 TO THE PRE-NEGOTIATION AGREEMENT
<TEXT>
<PAGE>
                                                                   EXHIBIT 10.37


                  TENTH AMENDMENT TO PRE-NEGOTIATION AGREEMENT

THIS TENTH AMENDMENT TO PRE-NEGOTIATION AGREEMENT dated as of May 1, 2003 (this
"Tenth Amendment"), by and among AKORN, INC., a Louisiana corporation ("Akorn"),
AKORN (NEW JERSEY), INC., an Illinois corporation ("Akorn NJ") (Akorn and Akorn
NJ being sometimes referred to herein individually as a "Borrower" and
collectively as the "Borrowers"), and THE NORTHERN TRUST COMPANY, an Illinois
banking corporation (the "Lender");

                                   WITNESSETH:

                  WHEREAS, the parties heretofore entered into the
Pre-Negotiation Agreement dated as of September 20, 2002, as amended by the
First Amendment dated as of October 18, 2002, the Second Amendment dated as of
November 26, 2002, the Third Amendment dated as of December 30, 2002, the Fourth
Amendment dated as of January 16, 2003, the Fifth Amendment dated as of January
31, 2003, the Sixth Amendment, dated as of February 14, 2003, the Seventh
Amendment dated as of February 28, 2003, the Eighth Amendment dated as of March
14, 2003, and the Ninth Amendment dated as of April 4, 2003 (the "Prior
Agreement"); and

                  WHEREAS, the Borrowers have requested an amendment to Section
4.1 of the Prior Agreement;

                  WHEREAS, the Lender has agreed to the Borrowers' request, but
only on the terms set forth herein;

                  NOW, THEREFORE, in consideration of the premises and the
covenants, agreements and acknowledgments contained herein, and other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereby agree as follows:

                  Section 1. Defined Terms. All capitalized terms used and not
otherwise defined in this Tenth Amendment shall have the same meanings as in the
Prior Agreement.

                  Section 2. Amendments.

                  2.1 Section 4.1 of the Prior Agreement is hereby amended to
         read as follows:

                  4.1 Forbearance Period. Subject to compliance by each Borrower
         with each of the terms and conditions of this Agreement, and without
         waiving the Existing Events, the Lender hereby agrees to forbear from
         enforcing its rights or remedies pursuant to the Loan Documents and
         applicable law (including, without limitation, to make a demand for
         payment as a result of the Payment Default) as a result of the Existing
         Events from the Agreement Closing Date until the earlier to occur of
         the following (as the case may be, the "Forbearance Termination Date"):
         (i) May 9, 2003 and (ii) the date on which a Borrowing Condition
         Failure occurs.


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                  2.2 Article VI (Covenants) of the Prior Agreement is hereby
amended by adding a new Section 6.13, immediately following the end of Section
6.12, which new Section 6.13 shall read as follows:

                  6.13 Investment Bank. The Borrowers shall, no later than May
         9, 2003, retain an investment bank of recognized national standing (the
         "Investment Bank") to explore all viable options to maximize value,
         including but not limited to soliciting offers for investment in,
         and/or offers to purchase the assets of, any of the Borrowers, pursuant
         to an agreement (the "Investment Bank Agreement") acceptable to the
         Lender in its sole discretion setting forth the basis on which the
         Investment Bank will be retained. Following the execution thereof, the
         Borrowers shall not amend, modify, supplement or terminate the
         Investment Bank Agreement.

                  Section 3. Pre-Negotiation Agreement and Documents to Remain
In Effect; Confirmation of Obligations; References. Except as expressly modified
and amended by this Tenth Amendment, the Prior Agreement shall remain in full
force and effect as originally executed and delivered by the parties. In order
to induce the Lender to enter into this Tenth Amendment, the Borrowers hereby
(i) confirm and reaffirm all of their obligations under the Documents, as
modified and amended as described above and under the Pre-Negotiation Agreement,
as modified and amended as described above; (ii) acknowledge and agree that the
Lender, by entering into this Tenth Amendment, does not waive any existing or
future default or event of default under any of the Documents or the Prior
Agreement, or any rights, powers or remedies under any of the Documents or the
Pre-Negotiation Agreement; (iii) acknowledge and agree that the Lender has not
heretofore waived any Borrowing Condition Failure, or any rights or remedies
under any of the Documents or the Prior Agreement; and (iv) acknowledge that
they do not have any defense, set-off or counterclaim to the payment or
performance of any of their obligations under the Documents or the Prior
Agreement, as amended hereby. All references to the Prior Agreement shall
henceforth be deemed to refer to the Prior Agreement as modified by this Tenth
Amendment and as hereafter modified by any amendment, modification or supplement
thereto.

                  Section 4. Confirmation of Certifications, Representations and
Warranties. In order to induce the Lender to enter into this Tenth Amendment the
Borrowers hereby certify, represent and warrant to the Lender that, except as
otherwise disclosed to the Lender in writing prior to the date hereof, including
in the Pre-Negotiation Agreement and in the Exhibits and Schedules attached
thereto and/or in documents submitted to the Lender prior to the date hereof
(including, but not limited to, any and all financial statements and reports,
budgets, statements of cash flow and governmental reports and filings)
(collectively referred to herein as "Disclosures"), all certifications,
representations and warranties contained in the Documents and in the
Pre-Negotiation Agreement and in all certificates heretofore delivered to the
Lender are true and correct as of the date hereof in all material respects, and,
subject to such Disclosures, all such certifications, representations and
warranties are hereby remade and made to speak as of the date of this Tenth
Amendment.

                  Section 5. RELEASE. EACH BORROWER ON BEHALF OF ITSELF AND ITS
AFFILIATES, SUBSIDIARIES, SUCCESSORS, ASSIGNS, PRINCIPALS, SHAREHOLDERS,
BENEFICIARIES, OFFICERS, MANAGERS, DIRECTORS, AGENTS,



                                      -2-
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REPRESENTATIVES, ADVISORS, EMPLOYEES AND ATTORNEYS, HEREBY JOINTLY AND SEVERALLY
RELEASES, WAIVES AND FOREVER DISCHARGES EACH OF THE LENDER AND ITS AFFILIATES,
SUBSIDIARIES, SUCCESSORS, ASSIGNS, PRINCIPALS, SHAREHOLDERS, BENEFICIARIES,
OFFICERS, MANAGERS, DIRECTORS, AGENTS, REPRESENTATIVES, ADVISORS, EMPLOYEES AND
ATTORNEYS OF, FROM, AND WITH RESPECT TO ANY AND ALL MANNER OF ACTIONS, CAUSES OF
ACTIONS, SUITS, DISPUTES, CLAIMS, COUNTERCLAIMS AND/OR LIABILITIES, CROSS
CLAIMS, DEFENSES THAT ARE KNOWN OR UNKNOWN, SUSPECTED OR UNSUSPECTED, PAST OR
PRESENT, ASSERTED OR UNASSERTED, CONTINGENT OR LIQUIDATED, WHETHER OR NOT WELL
FOUNDED IN FACT OR LAW, WHETHER IN CONTRACT, IN TORT OR OTHERWISE, AT LAW OR IN
EQUITY, BASED UPON, RELATING TO OR ARISING OUT OF ANY AND ALL TRANSACTIONS,
RELATIONSHIPS OR DEALINGS WITH OR LOANS MADE TO THE BORROWERS PURSUANT TO THE
LOAN DOCUMENTS AND/OR THE PRIOR AGREEMENT PRIOR TO THE EFFECTIVENESS HEREOF.

                  Section 6. Entire Agreement. This Tenth Amendment sets forth
all of the covenants, promises, agreements, conditions and understandings of the
parties relating to the subject matter of this Tenth Amendment, and there are no
covenants, promises, agreements, conditions or understandings, either oral or
written, between them relating to the subject matter of this Tenth Amendment
other than as are herein set forth.

                  Section 7. Successors. This Tenth Amendment shall inure to the
benefit of and shall be binding upon the parties and their respective
successors, assigns and legal representatives.

                  Section 8. Severability. In the event any provision of this
Tenth Amendment shall be held invalid or unenforceable by any court of competent
jurisdiction, such holding shall not invalidate or render unenforceable any
other provision hereof.

                  Section 9. Amendments, Changes and Modifications. This Tenth
Amendment may be amended, changed, modified, altered or terminated only by a
written instrument executed by all of the parties hereto:

                  Section 10. Construction.

                  (a) The words "hereof," "herein," and "hereunder," and other
words of a similar import refer to this Tenth Amendment as a whole and not to
the individual Sections in which such terms are used.

                  (b) References to Sections and other subdivisions of this
Tenth Amendment are to the designated Sections and other subdivisions of this
Tenth Amendment as originally executed.

                  (c) The headings of this Tenth Amendment are for convenience
only and shall not define or limit the provisions hereof.


                                      -3-
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                  (d) Where the context so requires, words used in singular
shall include the plural and vice versa, and words of one gender shall include
all other genders.

                  (e) Each party to this Tenth Amendment and legal counsel for
each party have participated in the drafting of this Tenth Amendment, and
accordingly the general rule of construction to the effect that any ambiguities
in a contract are to be resolved against the party drafting the contract shall
not be employed in the construction and interpretation of this Tenth Amendment.

                  Section 11. Execution of Counterparts. This Tenth Amendment
may be simultaneously executed in several counterparts, each of which shall be
an original and all of which shall constitute but one and the same instrument.

                  Section 12. Governing Law. This Tenth Amendment shall be
governed by and be construed and enforced in accordance with the laws of the
State of Illinois.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]


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                  IN WITNESS WHEREOF, the parties hereto have caused this Tenth
Amendment to be executed by their respective officers thereunto duly authorized,
as of the date first written above.


Address for Notices:                         AKORN, INC.

2500 Millbrook Drive
Buffalo Grove, IL  60089

Attention: Chief Financial Officer           By
Telecopier No.: (847) 279-6191                 ---------------------------------
Telephone No.: (847) 279-6100                  Name:
                                                    ----------------------------
                                               Title:
                                                     ---------------------------

                                             AKORN (NEW JERSEY), INC.


                                             By
                                                --------------------------------
50 South LaSalle Street                         Name:
Chicago, Illinois  60675                              --------------------------
Attention:  Olga Georgiev                       Title:
Telecopier No.: (312) 630-6105                         -------------------------
Telephone No.: (312) 444-2438
                                             THE NORTHERN TRUST COMPANY
With a copy to

White & Case LLP
200 S. Biscayne Blvd., Suite 4900            By
Miami, FL  33131                                --------------------------------
Attention: John K. Cunningham, Esq.             Name:
                                                     ---------------------------
                                               Title:
                                                      --------------------------


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