Document:

Exhibit 10.16

 

LOAN AGREEMENT

 

This Loan Agreement (the “Agreement”)
is made this 15th day of October, 2013 by and between NASRAT HAKIM, a resident of New Jersey (“Lender”),
and: Elite Pharmaceuticals, Inc., a Nevada corporation (“Borrower”), having its executive office in Northvale, New
Jersey.

 

The Borrower has applied to Lender for
and the Lender has agreed to make, subject to the terms of this Agreement, the following loan(s) (hereinafter referred to, singularly
or collectively, if more than one, as “Loan”):

 

A Line of Credit
(“Line of Credit”) in the maximum principal amount not to exceed $1,000,000 (one million dollars) at any one time outstanding
which shall be evidenced by the Borrower’s Promissory Note dated on or after the date hereof which shall mature on December
31, 2014, when the entire unpaid principal balance then outstanding plus accrued interest thereon shall be paid in full. Borrower
may prepay any amounts of the Loan without penalty. Any such prepayments shall first be attributable to interest due and owing.
Interest only shall be payable quarterly on July 1, October 1, January 1 and April 1 of each year. Prior
to maturity or the occurrence of any Event of Default hereunder and subject to any availability limitations, as applicable, the
Borrower may borrow, repay, and reborrow under the Line of Credit through maturity. The outstanding balance on the Line of Credit
shall bear interest at the rate of ten percent (10%) per annum as shall be set forth in any such Note evidencing all or any portion
of the Line of Credit, the terms of which are incorporated herein by reference.

 

The promissory note evidencing the Line
of Credit is referred to herein as the “Note” and shall include all extensions, renewals, modifications and substitutions
thereof.

 

I. CONDITIONS PRECEDENT

 

The Lender shall not be obligated to make
any disbursement of Loan proceeds until all of the following conditions have been satisfied by proper evidence, execution, and/or
delivery to the Lender of the following items in addition to this Agreement, all in form and substance satisfactory to the Lender
in Lender’s sole discretion:

 

Note(s): The Note(s) evidencing
the Loans(s) duly executed by the Borrower.

 

Corporate Resolution: A Corporate
Resolution duly adopted by the Board of Directors of the Borrower authorizing the execution, delivery, and performance of the Loan
Documents on or in a form provided by or acceptable to Lender.

 

Additional Documents: Receipt by
the Lender of other approvals, opinions, or documents as the Lender may reasonably request.

 

II. REPRESENTATIONS AND WARRANTIES

 

The Borrower represents and warrants to
Lender that:

 

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2.1 Financial Statements. The financial
statements contained in the Borrower’s periodic reports (the “SEC Reports”) filed with the Securities and Exchange
Commission (the “Commission”), are true and correct and fairly reflect the financial condition of the Borrower and
its subsidiaries as of the respective dates thereof, including all contingent liabilities of every type, and the financial condition
of the Borrower and its subsidiaries as stated therein has not changed materially and adversely since the date thereof.

 

2.2 Name, Capacity and Standing.
The Borrower’s exact legal name is correctly stated in the initial paragraph of the Agreement. The Borrower warrants and
represents that it is duly organized and validly existing under the laws of its state of incorporation; that it and/or its subsidiaries
are duly qualified and in good standing in every other state in which the nature of their business shall require such qualification,
and are each duly authorized by their board of directors to enter into and perform the obligations under the Loan Documents.

 

2.3 No Violation of Other Agreements.
The execution of the Loan Documents, and the performance by the Borrower, will not violate any provision, as applicable, of its
articles of incorporation, by-laws or of any law, other agreement, indenture, note, or other instrument binding upon the Borrower,
or give cause for the acceleration of any of the obligations of the Borrower.

 

2.4 Authority. All authority from
and approval by any federal, state, or local governmental body, commission or agency necessary to the making, validity, or enforceability
of this Agreement and the other Loan Documents has been obtained.

 

2.5 Asset Ownership. The Borrower
has good and marketable title to all of the properties and assets reflected on the balance sheets and financial statements contained
in the SEC reports, and all such properties and assets are free and clear of mortgages, deeds of trust, pledges, liens, and all
other encumbrances, except as otherwise disclosed in such SEC Reports.

 

2.6 Discharge of Liens and Taxes.
The Borrower and its subsidiaries have filed, paid, and/or discharged all taxes or other claims which may become a lien on any
of their respective properties or assets, excepting to the extent that such items are being appropriately contested in good faith
and for which an adequate reserve (in an amount acceptable to Lender) for the payment thereof is being maintained.

 

2.7 Litigation. Except as disclosed
in the SEC reports, there is no claim, action, suit or proceeding pending, threatened or reasonably anticipated before any court,
commission, administrative agency, whether State or Federal, or arbitration which will materially adversely affect the financial
condition, operations, properties, or business of the Borrower or its subsidiaries, or the ability of the Borrower to perform its
obligations under the Loan Documents.

 

2.8 Other Agreements. The representations
and warranties made by Borrower to Lender in the other Loan Documents are true and correct in all respects on the date hereof.

 

2.9 Binding and Enforceable. The
Loan Documents, when executed, shall constitute valid and binding obligations of the Borrower, the execution of such Loan Documents
has been duly authorized by the Borrower, and are enforceable in accordance with their terms, except as may be limited by bankruptcy,
insolvency, moratorium, or similar laws affecting creditors’ rights generally.

 

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III. AFFIRMATIVE COVENANTS

The Borrower covenants and agrees that
from the date hereof and until payment in fall of all indebtedness and performance of all obligations owed under the Loan Documents,
Borrower shall:

 

3.1 Maintain Existence and Current Legal
Form of Business. (a) Maintain its existence and good standing in the state of its incorporation, (b) maintain its
current legal form of business indicated above, and, (b) qualify and remain qualified as a foreign corporation in each jurisdiction
in which such qualification is required.

 

3.2 Maintain Records. Keep adequate
records and books of account, in which complete entries will be made in accordance with GAAP consistently applied, reflecting all
financial transactions of the Borrower.

 

3.3 Conduct of Business. Continue
to engage in an efficient, prudent, and economical manner in a business of the same general type as now conducted.

 

3.4 Maintain Insurance. Maintain
insurance with financially sound and reputable insurance companies or associations in such amounts and covering such risks as are
usually carried by companies engaged in the same or a similar business, and business interruption insurance if required by Lender,
which insurance may provide for reasonable deductible(s).

 

3.5 Comply With Laws. Comply in
all respects with all applicable laws, rules, regulations, and orders including, without limitation, paying before the delinquency
of all taxes, assessments, and governmental charges imposed upon it or upon its property.

 

3.6 Right of Inspection. Permit
the Lender and his authorized agents, at any reasonable time or times in the Lender’s sole discretion, to examine and make
copies of the records and books of account of, to visit the properties of the Borrower, and to discuss such matters with any officers
or directors of the Borrower, and the Borrower’s independent accountant as the Lender deems necessary and proper.

 

3.7 Reporting Requirements. Furnish
to the Lender:

 

Financial Statements:
The Borrower will timely file all reports on Forms’ 10-Q and 10-K with the Commission, which reports will contain all financial
and other information required to be included in such reports.

 

Notice of Litigation:
Promptly after the receipt by the Borrower of notice or complaint of any action, suit, and proceeding before any court or administrative
agency of any type which, if determined adversely, could have a material adverse effect on the financial condition, properties,
or operations of the Borrower.

 

Notice of Default: Promptly
upon discovery or knowledge thereof, notice of the existence of any event of default under this Agreement or any other Loan Documents.

 

Other Information: Such
other information as the Lender may from time to time reasonably request.

 

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IV. NEGATIVE COVENANTS

 

The Borrower covenants and agrees that
from the date hereof and until payment in full of all indebtedness and performance of all obligations under the Loan Documents,
the Borrower shall not, without the prior written consent of the Lender:

 

4.1 Liens. Create, incur, assume,
or suffer to exist any lien upon or with respect to any of Borrower’s properties now owned or hereafter acquired, except:

 

(a) Liens
and security interests in favor of the Lender;

 

(b) Liens
for taxes not yet due and payable or otherwise being contested in good faith and for which appropriate reserves are maintained;

 

(c) Other
liens imposed by law not yet due and payable, or otherwise being contested in good faith and for which appropriate reserves are
maintained;

 

(d) purchase
money security interests on any property hereafter acquired, provided that such lien shall attach only to the property acquired.

 

4.2 Debt. Create, incur, assume,
or suffer to exist any debt, except:

 

(a) Debt
to the Lender;

 

(b) Debt
outstanding on the date hereof and shown in the financial statements contained in the Borrower’s most recent Form 10-Q;

 

(c) Accounts
payable incurred in the ordinary course of business.

 

4.3 Leases.
Create, incur, assume, or suffer to exist any leases, except:

 

(a) Leases
outstanding on the date hereof and showing on the financial statements contained in the Borrower’s most recent Form 10-Q;

 

(b) Operating
Leases with a duration of more than one (1) year for machinery and equipment which do not in the aggregate require payments in
excess of $500,000 in any fiscal year of the Borrower.

 

(c) Additional
lease obligations in excess of $500,000 annually.

 

4.4 Guaranties. Assume, guarantee,
endorse, or otherwise be or become directly or contingently liable for obligations of any Person, except guaranties by endorsement
of negotiable instruments for deposit or collection or similar transactions in the ordinary course of business.

 

4.5 Disposition of Assets. Sell,
lease, or otherwise dispose of any of its assets or properties except in the ordinary and usual course of its business.

 

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V. EVENTS OF DEFAULT

 

The following shall be “Events of
Default” by Borrower:

 

5.1 The failure to make prompt payment
of any installment of principal or interest on any of the Note(s) when due or payable.

 

5.2 Should any representation or warranty
made in the Loan Documents prove to be false or misleading in any material respect.

 

5.3 Should any report, certificate, financial
statement, or other document furnished prior to the execution of or pursuant to the terms of this Agreement prove to be false or
misleading in any material respect.

 

5.4 Should the Borrower default on the
performance of any other obligation of indebtedness when due or in the performance of any obligation incurred in connection with
money borrowed, except with regard to the New Jersey Economic Development Authority Bonds issued in 2005.

 

5.5 Should the Borrower breach any covenant,
condition, or agreement made under any of the Loan Documents.

 

5.6 Should a custodian be appointed for
or take possession of any or all of the assets of the Borrower, or should the Borrower either voluntarily or involuntarily become
subject to any insolvency proceeding, including becoming a debtor under the United States Bankruptcy Code, any proceeding to dissolve
the Borrower, any proceeding to have a receiver appointed, or should the Borrower make an assignment for the benefit of creditors,
or should there be an attachment, execution, or other judicial seizure of all or any portion of the Borrower’s assets, and
such seizure is not discharged within 30 days.

 

5.7 Should final judgment for the payment
of money be rendered against the Borrower which is not covered by insurance and shall remain undischarged for a period of 30 days
unless such judgment or execution thereon be effectively stayed.

 

5.8 Upon the termination of existence of,
or dissolution of the Borrower.

 

VI. REMEDIES UPON DEFAULT

 

Upon the occurrence of any of the above
listed Events of Default, the Lender may at any time thereafter, at its option, take any or all of the following actions, at the
same or at different times:

 

6.1 Declare the balance(s) of the Note(s)
to be immediately due and payable, both as to principal and interest, late fees, and all other amounts/expenditures without presentment,
demand, protest, or notice of any kind, all of which are hereby expressly waived by Borrower, and such balance(s) shall accrue
interest at the Default Rate as provided herein until paid in full;

 

6.2 Exercise any and all other rights and
remedies available to the Lender under the terms of the Loan Documents and applicable law;

 

Confidential

 

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6.3 Any obligation of the Lender to advance
funds to the Borrower or any other Person under the terms of under the Note(s) and all other obligations, if any, of the Lender
under the Loan Documents shall immediately cease and terminate unless and until Lender shall reinstate such obligation in writing.

 

VII. MISCELLANEOUS PROVISIONS

 

7.1 Definitions.

 

“Default Rate”
shall mean fifteen percent (15%) per annum (not to exceed the legal maximum rate) from and after the date of an Event of Default
hereunder which shall apply, in the Lender’s sole discretion, to all sums owing, including principal and interest, on such
date.

 

“Loan Documents”
shall mean this Agreement including any schedule attached hereto, and all other documents, certificates, and instruments executed
in connection therewith, and all renewals, extensions, modifications, substitutions, and replacements thereto and therefore.

 

“Person” shall
mean an individual, partnership, corporation, trust, unincorporated organization, limited liability company, limited liability
partnership, association, joint venture, or a government agency or political subdivision thereof.

 

“GAAP” shall
mean generally accepted accounting principles as established by the Financial Accounting Standards Board or the American Institute
of Certified Public Accountants, as amended and supplemented from time to time.

 

7.2 Non-impairment. If any one or
more provisions contained in the Loan Documents shall be held invalid, illegal, or unenforceable in any respect, the validity,
legality, and enforceability of the remaining provisions contained therein shall not in any way be affected or impaired thereby
and shall otherwise remain in full force and effect. If it shall be found that any interest or other amount deemed interest due
hereunder violates the applicable law governing usury or interest rate caps, the applicable rate of interest due hereunder shall
automatically be lowered to equal the maximum rate of interest permitted under applicable law.

 

7.3 Applicable Law. This Agreement
shall be governed by and construed in accordance with the laws of New Jersey, United States of America, without reference to conflicts
of laws, rules or principles.

 

7.4 Waiver. Neither the failure
or any delay on the part of the Lender in exercising any right, power or privilege granted in the Loan Documents shall operate
as a waiver thereof, nor shall any single or partial exercise thereof preclude any other or further exercise of any other right,
power, or privilege which may be provided by law.

 

7.5 Modification. No modification,
amendment, or waiver of any provision of any of the Loan Documents shall be effective unless in writing and signed by the Borrower
and Lender.

 

7.6 Legal Counsel; No Presumption Against
Drafting Party. The Parties each acknowledge that they each have read this Agreement in its entirety and understand and appreciate
its contents and significance, and each executes this Agreement and makes the agreements contained herein knowingly, voluntarily
and of his or its own free will, having first had the opportunity to consult with counsel. This Agreement and the provisions contained
herein shall not be construed or interpreted for or against any Party hereto because said Party drafted or caused the Party’s
legal representative to draft any of its provisions. This Agreement shall be construed without reference to the identity of the
Party or Parties preparing same, it being expressly understood and agreed that the Parties participated equally or had equal opportunity
to participate in the drafting hereof.

 

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7.7 Stamps and Fees. The Borrower
shall pay all federal or state stamps, taxes, or other fees or charges, if any are payable or are determined to be payable by reason
of the execution, delivery, or issuance of the Loan Documents; and the Borrower agrees to indemnify and hold harmless the Lender
against any and all liability in respect thereof.

 

7.8 Attorneys’ Fees. In the
event the Borrower shall default in any of its obligations hereunder and the Lender believes it necessary to employ an attorney
to assist in the enforcement or collection of the indebtedness of the Borrower to the Lender, to enforce the terms and provisions
of the Loan Documents, to modify the Loan Documents, or in the event the Lender voluntarily or otherwise should become a party
to any suit or legal proceeding (including a proceeding conducted under the Bankruptcy Code), the Borrower agrees to pay the reasonable
attorneys’ fees of the Lender and all related costs of collection or enforcement that may be incurred by the Lender. The
Borrower shall be liable for such attorneys’ fees and costs whether or not any suit or proceeding is actually commenced.

 

7.9 Right of Offset. Any indebtedness
owing from Lender to Borrower may be set off and applied by Lender on any indebtedness or liability of Borrower to Lender, at any
time and from time to time after maturity, whether by acceleration or otherwise, and without demand or notice to Borrower.

 

7.10 Conflicting Provisions. If
provisions of this Agreement shall conflict with any terms or provisions of any of the Note(s), the provisions of such Note(s)
shall take priority over any provisions in this Agreement.

 

7.11 Notices. Any notice, request
or other communication required to be given pursuant to the provisions of this Agreement shall be in writing and shall be deemed
to be given when delivered in person or by courier (return receipt requested) or five days after being deposited in the United
States mail, postage prepaid, certified, return receipt requested to the Parties addressed as follows:

 

If to Borrower, to:

Elite Laboratories, Inc.

165 Ludlow Avenue Northvale

New Jersey 07647

Attn: Carter J. Ward, Chief Financial Officer

 

If to Lender to:

Nasrat Hakim

__________________

__________________

 

7.12 Consent to Jurisdiction. Borrower
hereby irrevocably agrees that any legal action or proceeding arising out of or relating to this Agreement may be instituted in
any New Jersey state court or federal court sitting in the State of New Jersey, or in such other appropriate court and venue as
Lender may choose in its sole discretion. Borrower consents to the jurisdiction of such courts and waives any objection relating
to the basis for personal or in rem jurisdiction or to venue which Borrower may now or hereafter have in any such legal
action or proceedings.

 

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7.13 Counterparts; Facsimile, Electronic
Signatures. This Agreement may be executed in counterparts, each of which shall be deemed an original, and all of which together
shall constitute a single agreement. This Agreement may be executed by facsimile signatures or by a pdf (or other similar format)
copy of the signature delivered by e-mail, which signatures shall have the same force and effect as original signatures.

 

7.14 Entire Agreement. The Loan
Documents embody the entire agreement between Borrower and Lender with respect to the Loans, and there are no oral or parol agreements
existing between Lender and Borrower with respect to the Loans which are not expressly set forth in the Loan Documents.

 

7.15 Indemnification. The Borrower
hereby agrees to and does hereby indemnify and defend the Lender, his agents and representatives, successors and assigns, and does
hereby hold each of them harmless from and against, any loss, liability, lawsuit, proceeding, cost expense or damage (including
reasonable counsel fees, whether suit is brought or not) arising from or otherwise relating to the closing, disbursement, administration,
or repayment of the Loans, including without limitation: (i) the failure to make any payment to the Lender promptly when due,
whether under the Notes evidencing the Loans or otherwise; (ii) the breach of any representations or warranties to the Lender
contained in this agreement or in any other loan documents now or hereafter executed in connection with the Loans; or (iii) the
violation of any covenants or agreements made for the benefit of the Lender and contained in any of the loan documents; provided,
however, that the foregoing indemnification shall not be deemed to cover any loss which is finally determined by a court of competent
jurisdiction to result solely from the Lender’s gross negligence or willful misconduct.

 

7.16 Notice and Cure Period. Notwithstanding
any provision in this Loan Agreement, the Note or Loan Documents to the contrary, an event of default shall not be deemed to have
occurred hereunder as to a non-monetary provision of this Loan Agreement unless and until the Borrower shall fail to cure and remedy
said non-monetary breach or default within forty five (45) days after the Borrower has received written notice thereof from
the Lender, and an event of default shall not be deemed to have occurred hereunder as to a monetary provision of the Loan Agreement
unless and until the Borrower shall fail to cure and remedy said monetary breach or default within ten (10) days after the
Borrower has received written notice thereof from the Lender.

 

7.17 WAIVER OF JURY TRIAL. UNLESS EXPRESSLY
PROHIBITED BY APPLICABLE LAW, THE UNDERSIGNED HEREBY WAIVE THE RIGHT TO TRIAL BY JURY OF ANY MATTERS OR CLAIMS ARISING OUT OF THIS
AGREEMENT OR ANY OF THE LOAN DOCUMENTS EXECUTED IN CONNECTION HEREWITH OR OUT OF THE CONDUCT OF THE RELATIONSHIP BETWEEN THE UNDERSIGNED
AND LENDER THIS PROVISION IS A MATERIAL INDUCEMENT FOR LENDER TO MAKE THE LOAN AND ENTER INTO THIS AGREEMENT. FURTHER, THE UNDERSIGNED
HEREBY CERTIFY THAT NO REPRESENTATIVE OR AGENT OF LENDER, HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT LENDER WOULD NOT SEEK TO
ENFORCE THIS WAIVER OR RIGHT TO JURY TRIAL PROVISION. NO REPRESENTATIVE OR AGENT OF LENDER HAS THE AUTHORITY TO WAIVE, CONDITION
OR MODIFY THIS PROVISION.

 

Signature Page to follow

 

Confidential

 

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SIGNATURE PAGE

 

IN WITNESS WHEREOF, the Lender and Borrower
have caused this Agreement to be duly executed under seal all as of the date first above written.

 

 

 

 

	 	ELITE PHARMACEUTICALS, INC.	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	By:	s/ Jerry Treppel	s/ Nasrat Hakim
	 	 	      Jerry Treppel, Chairman	  Nasrat Hakim

 

Confidential

 

    	9Redacted Version

 

Exhibit
10.17

 

MANUFACTURING AND LICENSE AGREEMENT

 

Between

 

Elite Pharmaceuticals, Inc.

 

and

 

Epic Pharma LLC

 

 

 

{***} Confidential portions of this
exhibit have been redacted and filed separately with the Commission pursuant to a confidential treatment request in accordance
with Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

Confidential 

 

    	 

    	 

    

 

MANUFACTURING AND LICENSE AGREEMENT

 

This License Agreement (“Agreement”)
is entered into as of the 1st day of October, 2013 by and between EPIC PHARMA LLC,
a Delaware limited liability company (“EPIC”), and ELITE PHARMACEUTICALS, INC., a Nevada corporation and ELITE
LABORATORIES, INC. (a subsidiary of Elite Pharmaceuticals, Inc.), a Delaware corporation (collectively, “ELITE”).

 

WHEREAS, ELITE has
ownership rights to products/ANDAs specified on Schedule A (the “Exclusive Products”) and Schedule D (the “Non-Exclusive
Products”), together (the “Products”) as of October 1, 2013, and EPIC wishes to license from ELITE the right
to manufacture, market and sell the Products on the terms and conditions set forth in this Agreement;

 

NOW, THEREFORE, in
consideration of the mutual covenants and agreements set forth in this Agreement, and for other good and valuable consideration,
the receipt of which is hereby acknowledged, the parties hereto agree as follows:

  

 

GRANT OF LICENSE

 

Article
1

 

1.1              Exclusive Product License. ELITE hereby grants to EPIC a license (“License” or “Licensing
Rights”) without the right to further sublicense, to manufacture, market and sell the Exclusive Products as listed in Schedule
A in the United States, including the right to reference the ANDA Number, where appropriate, for approval to market the Products
in the United States.

 

1.2              Non-Exclusive Products License. ELITE hereby grants to EPIC a non-exclusive license (“Non-Exclusive
License” or “Non-Exclusive Licensing Rights”) without the right to further sublicense, to manufacture, market
and sell the Non-Exclusive Products as listed in Schedule D in the United States, including the right to reference the ANDA Number,
where appropriate, for approval to market the Non-Exclusive Products in the United States. ELITE shall be the only other company
allowed to manufacture, market and sell the Non-Exclusive Products and ELITE shall only sell to clinics. EPIC shall not share in
any profits from Non-Exclusive Products sold by ELITE.

 

1.3              Marketing Rights. ELITE hereby grants to EPIC exclusive marketing rights (“Marketing Rights”)
to market and sell the Products in the United States, and Puerto Rico). ELITE agrees that it shall not (and it shall not authorize,
permit or suffer any of its affiliates to), directly or indirectly, sell or distribute a Product in United States at any time during
the term of this agreement unless specifically authorized or excluded under the terms of this Agreement

 

1.4              Trademarks. EPIC agrees and acknowledges that it shall not acquire by virtue of this Agreement any interest
in any trademarks or trade names of ELITE.

 

{***} Confidential portions of this
exhibit have been redacted and filed separately with the Commission pursuant to a confidential treatment request in accordance
with Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

Confidential 

 

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1.5              Manufacturing. ELITE hereby grants to EPIC rights to manufacture the Products for marketing and sales of the
Products by EPIC in the United States and Puerto Rico.

 

1.6              Regulatory and Pharmacovigilance. EPIC shall be responsible for all regulatory and pharmacovigilance matters
related to these Products.

 

1.7              Licensed Trade Secrets. The information exchanged between ELITE and EPIC pursuant to this Agreement is expressly
subject to the Mutual Confidentiality and Non-Disclosure Agreement entered into by the parties and dated October 8, 2008 (the “Confidentiality
Agreement”) and whose term is hereby made coterminous with this Agreement.

 

1.8              Improvements. Any new information, developments, or improvements relating to the Products subject to this
Agreement, and any patent or copyright rights arising from or related thereto (collectively, “Improvements”) will be
owned solely by ELITE but shall be automatically included in the License, and if EPIC develops an Improvement that may be used
beyond the Products which are the subject of this Agreement, then ELITE does now automatically grant a worldwide, non-exclusive,
irrevocable, royalty-free right for EPIC to use the Improvement.

 

1.9              Quality
Agreement. In conjunction with the execution of this Agreement, the parties shall execute a Quality Agreement.

 

1.10           
Site Transfer. EPIC shall be responsible for all costs related to the site transfer for all Products.

 

 

COMPENSATION

 

2.1.             License
Fee, Milestone, and Transfer Cost Payments. In return for the Licensing Rights described in this Agreement, EPIC shall pay
to ELITE the milestone payments (“Milestone Payments”) and a license fee (“License Fee”) compensation
specified in Schedule B. If ELITE manufactures any product for sale by EPIC, then the transfer cost for the Product shall be ${***}
per 1000 units in any configuration required by marketing plus the cost of the API at cost (as documented by invoices
for the API)

 

2.2.             Records. EPIC shall keep complete and accurate records of all manufacture and sales of the Products and the
calculation of product costs, net sales and gross profit of the Products. EPIC shall also provide a detailed summary of the Cost
of Goods for each product on Schedule A. ELITE shall have the right, at ELITE’s expense and after thirty (30) days’
prior written notice to EPIC, through an independent certified public accountant, on a mutually agreeable date, to examine such
records at any time within one (1) year after the due date of the License Fee payments to which such records relate, during regular
business hours, during the life of this Agreement and for twelve (12) months after expiration of the last production lot of Product
sold by EPIC, in order to verify the accuracy of the reports to be made under this Agreement. If the accountant determines that
EPIC has under-compensated ELITE, the findings shall be shared with EPIC. If EPIC agrees that EPIC has not paid ELITE all of the
compensation ELITE was entitled to receive, or it is later determined that EPIC did not pay all of the compensation due to ELITE,
then EPIC shall pay the proper amount of compensation and all costs and expenses incurred by ELITE to hire the accountant and all
of the accountant’s expenses, and all legal expenses, to obtain the appropriate compensation. If EPIC disputes in good faith
the accuracy of the results of such examination, the parties will retain a second independent certified public accountant whose
examination will be binding upon both parties. The losing party will pay all of the expenses of both independent certified public
accountant examinations.

 

{***} Confidential portions of this
exhibit have been redacted and filed separately with the Commission pursuant to a confidential treatment request in accordance
with Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

Confidential 

 

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2.3.             Reports. EPIC will provide Reports as stipulated in Schedule B.

 

2.4.             Payments by EPIC. 

 

		(a)	All Milestone Payments will be made by check and mailed to ELITE within ten (10) days after the payment becomes due.

 

		(b)	The License Fee shall be paid to ELITE in monthly payments based upon the previous month’s Products that EPIC shipped
to its customers. All License Fee payments shall be made by check and mailed to ELITE within thirty (30) days after the end of
each calendar month. A copy of the Report for the prior month will accompany the check.

 

		(c)	A late fee of 1% per month will be accrued for all payments which EPIC fails to pay when due.

 

 

TERM AND TERMINATION

 

3.1.             Term.
This Agreement shall become effective as of the date hereof and shall continue until five (5) years from such date (the “Initial
Term”), unless terminated earlier by mutual agreement of the parties or by one of the parties in accordance with this Article
3; provided further that the parties shall have the option, by mutual agreement, to extend the Initial Term of this Agreement
for an additional five (5) years (a “Renewal Term” and collectively with the Initial Term, the “Term”)
by the parties exchanging written notice of such election not less than six (6) months prior to the expiration of the Initial
Term.

 

3.2.             Modification for Lack of Licensing Fees and Minimum Unit Volumes.

 

{***} Confidential portions of this
exhibit have been redacted and filed separately with the Commission pursuant to a confidential treatment request in accordance
with Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

Confidential 

 

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		(a)	EPIC hereby agrees to exert commercially reasonable efforts and shall devote the same efforts to marketing the Products that
EPIC exerts for its other major pharmaceutical products being marketed in the United States.

 

		(b)	If after twelve (12) months of a Product’s launch, the Gross Profit declines for any Product to the point that the License
Fee paid to ELITE is less than ${***} for a six (6) month period for that Product,
then ELITE may terminate the Marketing Rights granted hereunder to EPIC as it relates to that individual Product. If ELITE desires
to terminate the Marketing Rights granted hereunder, then ELITE shall give EPIC ninety (90) days written notice that it will no
longer have the Marketing Rights to sell the particular Product.

 

If EPIC’s unit volume sales
of an API specific group of Products (“ Product Group”), (initially defined as Isradipine, Dantrolene, or Loxapine
Product Groups), does not meet its minimum annual unit volume forecast for that Product Group in the initial launch year, or does
not meet its subsequent minimum annual unit volume forecast (as defined in Schedule C) for a Product Group, then EPIC shall have
the following six (6) months to achieve one-half of the prior year’s minimum annual unit volume forecast and if EPIC still
fails to meet such volume minimum during the six months described, then EPIC shall lose its Marketing Rights of such Product Group.

 

3.3.             Termination
by Mutual Agreement. The parties may terminate this Agreement any time by mutual written agreement.

 

3.4.             Termination by Breach. Upon the breach or default in the performance or observance of any of the material
provisions of this Agreement by either Party, when such breach or default is not cured by the responsible Party within sixty (60)
days after written notice by the other Party, the other Party may terminate this Agreement upon an additional thirty (30) days
written notice to the other Party. Termination will be without prejudice to either Party to recover any and all damages to which
it may be entitled, or to exercise any other remedies.

 

3.5.             Termination by ELITE Upon Bankruptcy or Reorganization of EPIC. If EPIC enters into any proceeding (whether
voluntary or otherwise) in bankruptcy, reorganization or arrangement for the appointment of a receiver or trustee to take possession
of its assets, or any other proceeding under any law for the relief of creditors or makes an arrangement for the benefit of its
creditors, and remains in such proceeding for 30 days, then ELITE shall retain its rights to the Products and may terminate this
Agreement without further payment to EPIC.

 

3.6.             Licensing
Rights upon Termination. Except as otherwise provided in this Agreement, upon termination of this Agreement: all rights, privileges,
and licenses will terminate and revert to ELITE, and EPIC must not thereafter make any use whatsoever of any trade secrets, except
that it is agreed that upon termination notwithstanding any other terms of this Agreement, EPIC may retain one archival copy to
have sufficient information solely to respond to state and federal regulatory inquiries regarding the Products.

 

{***} Confidential portions of this
exhibit have been redacted and filed separately with the Commission pursuant to a confidential treatment request in accordance
with Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

Confidential 

 

    	5

    	 

    

 

3.7.             Accrued Rights. Expiration or termination of this Agreement shall be without prejudice to the right of either
Party to receive all payments accrued and unpaid at the effective date of such expiration or termination, without prejudice to
the remedy of either Party in respect to any previous breach of the representations, warranties or covenants herein contained,
without prejudice to any rights to indemnification set forth herein and without prejudice to any other provision hereof which expressly
or necessarily calls for performance after such expiration or termination. EPIC expressly retains the right to sell Product on-hand
after termination of this Agreement and shall remain bound to pay ELITE the Licensing Fee as provided in this Agreement.

 

3.8.             Transition.
If this Agreement is terminated for any reason or if EPIC loses its Marketing Rights for any or all Products, or if EPIC stops
selling for any reasons, EPIC then shall be required to contract manufacture at cost plus {***}%
for a three (3) year period from the date the termination occurs or the date the selling ends whichever comes first.

  

                       

REPRESENTATIONS, WARRANTIES AND COMPETITION, COOPERATION UPON BANKRUPTCY OF ELITE

 

4.1.          
EPIC Representations. EPIC hereby represents and warrants to ELITE that (a) it has obtained all necessary
licenses, authorizations and approvals required by applicable Law, including those required by the FDA, DEA or any other applicable
regulatory agency to enter into this Agreement and perform its obligations hereunder; (b) the execution, delivery and performance
of this Agreement by EPIC does not conflict with or constitute a breach of any order, judgment, agreement, or instrument to which
it is a party; (c) the execution, delivery and performance of this Agreement by EPIC does not require the consent of any person;
and (d) none of its officers or directors has ever been convicted of a felony under the laws of the United States for conduct relating
to the development or approval of a drug product or relating to the marketing or sale of a drug product

 

4.2.          
ELITE Representations. ELITE hereby represents and warrants to EPIC that (a) it has obtained all necessary
licenses, authorizations and approvals required by applicable Law, including those required by the FDA, DEA or any other applicable
regulatory agency to enter into this Agreement and perform its obligations hereunder; (b) the execution, delivery and performance
of this Agreement by ELITE does not conflict with or constitute a breach of any order, judgment, agreement, or instrument to which
it is a party; (c) the execution, delivery and performance of this Agreement by ELITE does not require the consent of any
person; and (d) none of its officers or directors has ever been convicted of a felony under the laws of the United States
for conduct relating to the development or approval of a drug product or relating to the marketing or sale of a drug product.

 

4.3.          
Non-competition by EPIC. EPIC hereby covenants and agrees that without the prior written consent of ELITE
during the Term of this Agreement, and for 1 year after the last shipment of Product by EPIC if the agreement is terminated due
to breach of the Agreement by EPIC, EPIC will not directly or indirectly market any of the Products Licensed to EPIC by ELITE pursuant
to this Agreement. This section is not intended to prohibit EPIC from marketing and selling a product which addresses the same
therapeutic indication as a Product, as long as that other product does not contain the same API as the Product(s) in this Agreement.

 

{***} Confidential portions of this
exhibit have been redacted and filed separately with the Commission pursuant to a confidential treatment request in accordance
with Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

Confidential 

 

    	6

    	 

    

 

4.4.          
Cooperation Upon Bankruptcy Event of ELITE. ELITE shall use, and cause its representatives and affiliates
to use, best efforts to make all necessary arrangements and take all required actions to permit EPIC to retain all rights licensed
hereunder with respect to the Products in the event that ELITE (i) is dissolved or liquidated, (ii)
commences a voluntary case or other proceeding seeking liquidation, reorganization or other relief with respect to itself or its
debts under any bankruptcy, insolvency or other similar law, (iii) is subject to an involuntary case or other proceeding seeking
liquidation, reorganization or other relief with respect to ELITE and an order for relief entered or such proceeding has not be
dismissed or discharged within sixty (60) days of commencement, (v) has made an assignment for the benefit of creditors, or (vi)
otherwise ceases to conduct business during the Term (each, an “Extraordinary Event”).

  

 

INDEMNIFICATION AND INSURANCE

 

5.1.             ELITE Indemnity. Subject to Sections 5.2 and 5.4, ELITE shall indemnify and hold harmless EPIC and its Affiliates
against all third party claims, actions, costs, expenses, including court costs and legal fees or other third party liabilities
("Third Party Liabilities") whatsoever in respect of:

 

		(a)	any breach of any representation, warranty, covenant or similar promise made under this Agreement or arising out of this Agreement;

 

		(b)	any negligence or willful misconduct by ELITE and/or any of its employees; and

 

		(c)	any product liability in connection with the Products caused by ELITE or any third party acting on behalf of ELITE or its Affiliates;

 

5.2.             
EPIC Indemnity. Subject to Sections 5.1 and 5.4, EPIC shall indemnify and hold harmless ELITE and its Affiliates
against all Third Party Liabilities whatsoever in respect of:

 

		(a)	EPIC’s and/or it Affiliates’, subcontractors’ or suppliers’ failure to comply with the Product Specifications,
cGMP or applicable Laws;

 

{***} Confidential portions of this
exhibit have been redacted and filed separately with the Commission pursuant to a confidential treatment request in accordance
with Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

Confidential 

 

    	7

    	 

    

 

		(b)	the use, marketing, storage, distribution, handling or sale of the Product after the Effective Date by EPIC or any third party,
other than a third party acting on behalf of ELITE or its Affiliates;

 

		(c)	any product liability in connection with the Products caused by EPIC or any third party acting on behalf of EPIC or its Affiliates;

 

		(d)	for any Product that is recalled or withdrawn from the market by reason of EPIC’s breach of any warranty or other covenant
under this Agreement or any other agreement with ELITE, ELITE will be entitled to reimbursement of all costs associated with a
recall or withdrawal, including reasonable costs associated with compliance with the recall or withdrawal (including penalties).

 

		(e)	any liabilities arising out of the presence or actions of a EPIC employee at EPIC’s manufacturing and packaging facilities
pursuant to this Agreement; and

 

		(f)	any negligent or wrongful act by EPIC and any breach by EPIC of any representation or warranty, covenant or similar promise
made under this Agreement or arising out of this Agreement.

 

5.3.             Procedures
for Indemnification. In the event that a party (the "Indemnified Party") is seeking indemnification under
Sections 5.1 or 5.2, the Indemnified Party shall inform the other party (the "Indemnifying Party") of a claim
as soon as reasonably practicable after the Indemnified Party receives notice of the claim, shall permit the Indemnifying Party
to assume direction and control of the defense of the claim, and shall cooperate as requested by the Indemnifying Party (at the
expense of the Indemnifying Party) in the defense of the claim; provided, however, if the defendants in any such action include
both the Indemnified Party and the Indemnifying Party and the Indemnified Party shall have reasonably concluded that a conflict
may arise between the positions of the Indemnifying Party and the Indemnified Party in conducting the defense of any such action
or that there may be legal defenses available to it that are different from or additional to those available to the Indemnifying
Party, the Indemnified Party shall have the right to select separate counsel to assume such legal defenses and to otherwise participate
in the defense of such action or on behalf of the Indemnified Party. No Indemnifying Party shall, without the prior written consent
of the Indemnified Party, settle or compromise or consent to the entry of judgment with respect to any pending or threatened action
or claim whatsoever, in respect of which indemnification could be sought under Sections 6.1 or 6.2 (whether or not the Indemnified
Party is an actual or potential party thereto), unless such settlement, compromise or consent (i) includes an unconditional release
of the Indemnified Party in form and substance reasonably satisfactory to the Indemnified Party from all liability arising out
of such action or claim and (ii) does not include a statement as to or an admission of fault, culpability or a failure to act
by or on behalf of the Indemnified Party. The Indemnifying Party shall not be liable for settlement of any pending or threatened
action or any claim whatsoever that is effected without its written consent (which consent shall not be unreasonably withheld
or delayed).

 

{***} Confidential portions of this
exhibit have been redacted and filed separately with the Commission pursuant to a confidential treatment request in accordance
with Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

Confidential 

 

    	8

    	 

    

 

5.4.             Mitigation. In the event of any occurrence which may result in either party becoming liable under Section 5.1
or Section 5.2, each party shall use its best efforts to take such actions as may be reasonably necessary to mitigate the damages
payable by the other party under Section 5.1 or Section 5.2, as the case may be.

 

5.5.             Limitation of Liability. NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED HEREIN, IN NO EVENT SHALL ANY
PARTY, ITS DIRECTORS, OFFICERS, EMPLOYEES, AGENTS OR AFFILIATES BE LIABLE TO THE OTHER PARTIES FOR ANY CLAIMS RELATED TO LOST PROFITS
AND GOODWILL, WHETHER BASED UPON A CLAIM OR ACTION OF CONTRACT, WARRANTY, NEGLIGENCE, STRICT LIABILITY OR OTHER TORT, OR OTHERWISE,
ARISING OUT OF THIS AGREEMENT.

 

5.6.             Insurance. Each party shall maintain commercial general liability insurance through the term of this Agreement
upon launch of the first Product, which insurance shall afford limits of not less than $5,000,000 for each occurrence for personal
injury or property damage liability. Furthermore, each party shall maintain product liability insurance, through the term of this
Agreement upon launch of the first Product and for a period of three (3) years thereafter, which insurance shall afford limits
of not less than $5,000,000 in the aggregate per annum with respect to product and completed operations liability. This insurance
shall be written to cover claims incurred, discovered, manifested, or made during or after the expiration of this Agreement. Each
party shall provide the other with a certificate of insurance evidencing the above and showing the name of the issuing company,
the policy number, the effective date, the expiration date and the limits of liability. The insurance certificate shall further
provide for a minimum of thirty (30) days' written notice to the insured of a cancellation of, or material change in, the
insurance. If a party is unable to maintain the insurance policies required under this Agreement through no fault on the part of
such party, then such party shall forthwith notify the other party in writing and the parties shall in good faith negotiate appropriate
amendments to the insurance provision of this Agreement in order to provide adequate assurances. In the event that either a customer
or an insurer of either party requires such party to increase its insurance limits above the $5,000,000 described above for any
policy, then the other party to this Agreement must also match the required insurance increase, so that the parties to this Agreement
are carrying the same insurance policy limits. It is the express intention of the parties that the parties shall endeavor to avoid
insurance policy limits above $10,000,000.

 

  

MISCELLANEOUS

 

6.1.             Waiver;
Remedies and Amendment. Any waiver by any party hereto of a breach of any provisions of this Agreement will not be implied
and will not be valid unless such waiver is recited in writing and signed by such party. Failure of any party to require, in one
or more instances, performance by the other party or parties in strict accordance with the terms and conditions of this Agreement
will not be deemed a waiver or relinquishment of the future performance of any such terms or conditions or of any other terms
and conditions of this Agreement. A waiver by any party of any term or condition of this Agreement, including this Section 5.1,
shall be valid only if in writing and will not be deemed or construed to be a waiver of such term or condition for any other term.
All rights, remedies, undertakings, obligations and agreements contained in this Agreement will be cumulative and none of them
will be a limitation of any other remedy, right, undertaking, obligation or agreement of any party. This Agreement may not be
amended except in a writing signed by all parties.

 

{***} Confidential portions of this
exhibit have been redacted and filed separately with the Commission pursuant to a confidential treatment request in accordance
with Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

Confidential 

 

    	9

    	 

    

 

6.2.             Affiliates, Assignment, No Inconsistent Agreements. EPIC may not assign its rights and obligations hereunder
without the prior written consent of ELITE. Neither EPIC nor ELITE will enter into any agreement that is inconsistent with its
obligations hereunder.

 

6.3.             Counterparts. This Agreement may be executed in any number of counterparts, each of which when so executed
will be deemed to be an original and all of which when taken together will constitute this Agreement.

 

6.4.             Governing Law; Dispute Resolution; Venue. This Agreement will be governed by and construed in accordance with
the laws of the state of New York without regard to conflict of law or choice of law rules. Any controversy or claim pursuant to
this Agreement or the breach thereof shall be referred for decision forthwith to a senior executive of each Party not directly
involved in the dispute. If no agreement is reached within thirty (30) days of the request by one Party to the other to refer the
same to such senior executive, then such controversy or claim shall be settled by arbitration in accordance with the Commercial
Arbitration Rules of the American Arbitration Association; such arbitration to be held in Rockford, Illinois on an expedited basis.
Judgment upon the award rendered by the Arbitrator(s) may be entered in any court having jurisdiction thereof.

 

6.5.             Headings. The headings set forth at the beginning of the various sections of this Agreement are for convenience
and form no part of the Agreement between the parties.

 

6.6.             Notices. All notices, requests, instructions, consents and other communications to be given pursuant to this
Agreement shall be in writing and shall be deemed received (a) on the same day if delivered in person, by same-day courier or by
facsimile, electronic mail or other electronic transmission, (b) on the next day if delivered by overnight mail or courier, or
(c) on the date indicated on the return receipt, or if there is no such receipt, on the third calendar day (excluding Sundays)
if delivered by certified or registered mail, postage prepaid, to the party for whom intended to the following addresses:

 

	If to EPIC:	 
	
        EPIC

        22715 North Conduit Avenue

        Laurelton, NY 11413

        Attn: President

         
	 
	 	 
	If to ELITE:	 
	
        ELITE PHARMACEUTICALS, Inc.

        165 Ludlow Avenue

        Northvale, New Jersey 07647

        Attention: President and CEO
	 
	 

                                                                          
	

{***} Confidential portions of this
exhibit have been redacted and filed separately with the Commission pursuant to a confidential treatment request in accordance
with Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

Confidential 

 

    	10

    	 

    

 

6.7 Notice. Each party may by written notice given to the other in accordance
with this Agreement change the address to which notices to such party are to be delivered.

 

6.8
Severability. If any provision of this Agreement is held by a court of competent jurisdiction to be invalid or unenforceable,
it will be modified, if possible, to the minimum extent necessary to make it valid and enforceable or, if such modification
is not possible, it will be stricken and the remaining provisions will remain in full force and effect.

 

6.9 Survival. The
rights and obligations which accrue to a party during the term of this agreement shall survive the termination of this Agreement.

 

6.10 Force Majeure.
No party to this Agreement will be liable for failure or delay in the performance of any of its obligations hereunder, if such
failure or delay is due to causes beyond its reasonable control including, without limitation, acts of God, earthquakes, fires,
strikes, acts of war, or intervention of any governmental authority, but any such delay or failure will be remedied by such party
as soon as possible after the removal of the cause of such failure or delay.

 

6.11 Entire Understanding.
This Agreement, including the schedules attached hereto, contains the entire understanding relative to the matters addressed herein,
and supersedes all prior and collateral communications, reports, and understandings, if any, between the parties regarding the
matters addressed herein.

 

6.12 Drafting.
The parties have participated jointly in the negotiation and drafting of this Agreement. In the event an ambiguity or question
of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the parties and no presumption or
burden of proof shall arise favoring or disfavoring any party by virtue of the authorship of any of the provisions of this Agreement.

 

6.13 Not a Joint
Venture. This Agreement does not constitute or create (and the Parties do not intend to create hereby) a joint venture, pooling
arrangement, Partnership, or formal business organization of any kind between and among any of the Parties, and the rights and
obligations of the Parties shall be only those expressly set forth herein. The relationship hereby established between EPIC and
ELITE is solely that of licensee and licensor, each is an independent contractor engaged in the operation of its own respective
business. Neither Party shall be considered to be an agent of the other for any purpose whatsoever. Each Party shall be responsible
for providing its own personnel and workers compensation, medical coverage or similar benefits and shall be solely responsible
for the payment of social security benefits, unemployment insurance, pension benefits, withholding any required amounts for income
and other employment-related taxes and benefits of its own employees, and shall make its own arrangements for injury, illness or
other insurance coverage to protect itself, its Affiliates, its subcontractors and personnel from any damages, loss and/or liability
arising out of the performance of this Agreement. Neither Party has the power or authority to act for, represent or bind the other
(or its Affiliates) in any manner.

 

{***} Confidential portions of this
exhibit have been redacted and filed separately with the Commission pursuant to a confidential treatment request in accordance
with Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

Confidential 

 

    	11

    	 

    

 

IN WITNESS WHEREOF,
the parties have executed this Agreement on the date first set forth above.

 

 

 

	ELITE PHARMACEUTICALS, INC.	EPIC PHARMA LLC
	 	 
	 	 
	 	 
	By:          s/
Nasrat Hakim                                    	By:            s/
    Jeenarine Narine                           
	
         

        Name: Nasrat Hakim
	
         

        Name: Jeenarine Narine

	
         

        Title: CEO and President
	
         

        Title: President

	 	 
	Date: __October 2, 2013_________________	Date: ___October 2, 2013________________

 

{***} Confidential portions of this
exhibit have been redacted and filed separately with the Commission pursuant to a confidential treatment request in accordance
with Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

Confidential 

 

    	12

    	 

    

 

Redacted Version

 

SCHEDULE A

 

Exclusive Product List

 

 

 

 

 

	Name	ANDA #
	{***}	{***}
	{***}	{***}
	{***}	{***}
	{***}	{***}
	{***}	{***}
	{***}	{***}

 

{***} Confidential portions of this
exhibit have been redacted and filed separately with the Commission pursuant to a confidential treatment request in accordance
with Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

Confidential 

  

    	13

    	 

    

 

Redacted Version

 

SCHEDULE B

 

Compensation
for Licensing Rights

 

Milestone Payments

 

EPIC shall pay to ELITE
Milestone Payments totaling ${***}, according to the following schedule:

 

		·	${***} shall be due to ELITE upon signing of this License
Agreement and shall be paid no later than November 15th, 2013.

		·	${***} shall be paid to ELITE upon filing for each
Product’s supplement with FDA as listed below:

 

		·	{***}

		·	{***}

		·	{***}

 

		·	${***} shall be paid to ELITE five business days after
FDA’s approval of the site transfer or first product launch and/or shipment whichever comes first:

 

		§	{***}

		§	{***}

		§	{***}

 

License Fee

 

EPIC will pay to ELITE a License Fee that is a percentage of
the product gross profit (“Product Gross Profit”) of EPIC, as defined below, generated on Products sold and shipped
to its customers by EPIC according to the following schedule:

 

		·	{***}% of Product Gross Profit

 

Product Gross Profit is defined as:

 

Net Sales – Cost of Sale - Cost of
Goods = Product Gross Profit.

 

		§	Net Sales is defined as: Net Invoice Price less the following: Charge backs, Buying Groups/Wholesaler Administrative
Fees/Rebates, Allowances, Medicaid and Returns.

 

		§	Cost of Sales is defined as 3% of Net Sales

 

		§	Cost of Goods is defined as ${***} per 1000 units in any configuration required
by marketing plus the cost of the API at cost (as documented by invoices for the API).

 

{***} Confidential portions of this
exhibit have been redacted and filed separately with the Commission pursuant to a confidential treatment request in accordance
with Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

Confidential 

 

    	14

    	 

    

 

EPIC shall also provide a detailed summary of the Cost of Goods
for each product on Schedule B that shall be calculated based on GAAP.

 

The calculation of Product Gross Profit and the Licensing Fee
shall be performed by Epic and presented to Elite as a report (“Report”) which shall include the following information:

 

 

 

 

 

REPORT ITEMS

	
         

         

         

         

         

	 	 	 
	Gross Invoice Sales	 	Total Sales for Month
	Cash Discount	 	Cash Discount 
	 	 	 
	Net Invoice Sales	 	Total Sales - Cash Discount
	 	 	 
	Deductions 	 	Allowances (including; Medicaid rebate; state program rebates)  price adjustments; returns; charge backs.
	Net Sales	 	Net Invoice Sales – Deductions
	
         

        Cost of Sales

         
	 	
        3% of Net Sales

         

	
         

        Cost of Goods
	 	Total Units x Unit Cost 
	 	 	 
	 	 	 
	Gross Profit	 	Net Sales less Cost of Goods
	Margin %	 	Margin Percentage (Gross Profit divided by Gross Invoice Sales)
	 	 	 
	Amount Due 	 	Gross Profit $ x {***}%
	 	 	 
	 	 	 
	 	 	 

 

Whenever possible, the Report will be made using actual sales,
charge backs, administrative fees/rebates, price adjustments, and returns; however, in some cases estimated numbers may be required
because of timing of CBs, fees, returns, etc. A true up Report will be completed and presented to ELITE within 60 days after the
end of each calendar year.

  

{***} Confidential portions of this
exhibit have been redacted and filed separately with the Commission pursuant to a confidential treatment request in accordance
with Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

Confidential 

 

    	15

    	 

    

 

SCHEDULE C

 

Minimum Annual Unit Forecast for Each
Product Group

 

 

	 	    Year 1   	    Year 2    	    Year 3   	    Year 4    	    Year 5
	(Percent of Market)	 	 	 	 	 
	{***}	 	 	 	 	 
	{***}	 	 	 	 	 
	{***}	 	 	 	 	 

 

    	16

    	 

    

 

SCHEDULE D

 

Non-Exclusive Product
List

 

 

	Name	ANDA #
	{***}	{***}
	{***}	{***}
	{***}	{***}
	{***}	{***}
	{***}	{***}
	{***}	{***}

 

{***} Confidential portions of this
exhibit have been redacted and filed separately with the Commission pursuant to a confidential treatment request in accordance
with Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

Confidential 

 

    	17

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