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NEITHER THIS SECURITY NOR THE SECURITIES INTO WHICH THIS SECURITY IS EXERCISABLE
HAVE  BEEN  REGISTERED  WITH  THE  SECURITIES  AND  EXCHANGE  COMMISSION  OR THE
SECURITIES   COMMISSION  OF  ANY  STATE  IN  RELIANCE  UPON  AN  EXEMPTION  FROM
REGISTRATION  UNDER THE  SECURITIES  ACT OF 1933,  AS AMENDED  (THE  "SECURITIES
ACT"),  AND,  ACCORDINGLY,  MAY NOT BE OFFERED  OR SOLD  EXCEPT  PURSUANT  TO AN
EFFECTIVE  REGISTRATION  STATEMENT  UNDER THE  SECURITIES  ACT OR PURSUANT TO AN
AVAILABLE  EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE  REGISTRATION
REQUIREMENTS  OF THE  SECURITIES  ACT AND IN ACCORDANCE  WITH  APPLICABLE  STATE
SECURITIES  LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO
SUCH  EFFECT,  THE  SUBSTANCE  OF WHICH SHALL BE  REASONABLY  ACCEPTABLE  TO THE
COMPANY.  THIS  SECURITY  AND THE  SECURITIES  ISSUABLE  UPON  EXERCISE  OF THIS
SECURITY MAY BE PLEDGED IN CONNECTION  WITH A BONA FIDE MARGIN  ACCOUNT OR OTHER
LOAN SECURED BY SUCH SECURITIES.

                          COMMON STOCK PURCHASE WARRANT

                To Purchase __________ Shares of Common Stock of

                           ELITE PHARMACEUTICALS, INC.

                  THIS COMMON STOCK PURCHASE  WARRANT (the "WARRANT")  certifies
that, for value received,  _____________ (the "HOLDER"),  is entitled,  upon the
terms and subject to the limitations on exercise and the conditions  hereinafter
set forth,  at any time on or after the  Initial  Exercise  Date (as  defined in
Section 2) and on or prior to the close of business on the five year anniversary
of the Initial  Exercise Date (the  "TERMINATION  DATE") but not thereafter,  to
subscribe  for  and  purchase  from  Elite  Pharmaceuticals,  Inc.,  a  Delaware
corporation  (the  "COMPANY"),  up to ______  shares (the  "WARRANT  SHARES") of
Common Stock, par value $.01 per share, of the Company (the "COMMON STOCK"). The
purchase price of one share of Common Stock under this Warrant shall be equal to
the Exercise Price, as defined in Section 2(b).

     SECTION 1.  DEFINITIONS.  Capitalized  terms used and not otherwise defined
herein shall have the meanings  set forth in that  certain  Securities  Purchase
Agreement (the "PURCHASE  AGREEMENT"),  dated March 15, 2006,  among the Company
and the purchasers signatory thereto.

     SECTION 2. EXERCISE.

          a) EXERCISE OF WARRANT. Exercise of the purchase rights represented by
     this Warrant may be made,  in whole or in part,  at any time or times on or
     after the date of issue of this Warrant (the "INITIAL  EXERCISE  DATE") and
     on or before the  Termination  Date by  delivery  to the  Company of a duly
     executed  facsimile  copy of the Notice of Exercise Form annexed hereto (or
     such other office or agency of the Company as it may designate by notice in
     writing to the registered Holder at the address of such Holder appearing on
     the books of the  Company);  and,  within 3  Trading  Days of the date said
     Notice of

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     Exercise is  delivered to the  Company,  the Holder shall have  surrendered
     this Warrant to the Company and the Company shall have received  payment of
     the  aggregate  Exercise  Price of the  shares  thereby  purchased  by wire
     transfer  or  cashier's  check  drawn  on a  United  States  bank.  Partial
     exercises of this Warrant  resulting in purchases of a portion of the total
     number of  Warrant  Shares  available  hereunder  shall  have the effect of
     lowering the outstanding number of Warrant Shares purchasable  hereunder in
     an amount equal to the applicable number of Warrant Shares  purchased.  The
     Holder and the Company shall maintain records showing the number of Warrant
     Shares purchased and the date of such purchases.  The Company shall deliver
     any  objection  to any Notice of  Exercise  Form  within 1 Business  Day of
     receipt of such  notice.  In the event of any dispute or  discrepancy,  the
     records of the Holder shall be controlling and determinative in the absence
     of manifest error.

          b) EXERCISE  PRICE.  The exercise  price per share of the Common Stock
     under this Warrant  shall be $2.75,  subject to adjustment  hereunder  (the
     "EXERCISE PRICE").

          c) CASHLESS  EXERCISE.  If at any time after one year from the date of
     issuance  of this  Warrant  there is no  effective  Registration  Statement
     registering,  or no current  prospectus  available  for,  the resale of the
     Warrant  Shares by the Holder,  then this  Warrant may also be exercised at
     such time by means of a "cashless  exercise"  in which the Holder  shall be
     entitled to receive a certificate for the number of Warrant Shares equal to
     the quotient obtained by dividing [(A-B) (X)] by (A), where:

          (A)  = the VWAP on the Trading Day  immediately  preceding the date of
               such election;

          (B)  = the Exercise Price of this Warrant, as adjusted; and

          (X)  = the number of Warrant  Shares  issuable  upon  exercise of this
               Warrant in accordance  with the terms of this Warrant by means of
               a cash exercise rather than a cashless exercise.

          d) EXERCISE LIMITATIONS.

               i.  HOLDER'S  RESTRICTIONS.  The  Company  shall not  effect  any
          exercise  of this  Warrant,  and a Holder  shall not have the right to
          exercise  any portion of this  Warrant,  pursuant  to Section  2(c) or
          otherwise,  to the extent that after  giving  effect to such  issuance
          after exercise as set forth on the applicable Notice of Exercise, such
          Holder (together with such Holder's  Affiliates,  and any other person
          or entity  acting as a group  together with such Holder or any of such
          Holder's  Affiliates),  as set  forth  on  the  applicable  Notice  of
          Exercise, would beneficially own in excess of the Beneficial Ownership
          Limitation (as defined below). For purposes of the foregoing sentence,
          the number of shares of Common Stock beneficially owned by such Holder
          and its Affiliates  shall include the number of shares of Common Stock
          issuable  upon  exercise of this  Warrant  with  respect to which such
          determination is being made, but shall exclude the number of shares of

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          Common  Stock  which  would  be  issuable  upon  (A)  exercise  of the
          remaining,  nonexercised portion of this Warrant beneficially owned by
          such Holder or any of its Affiliates and (B) exercise or conversion of
          the unexercised or nonconverted portion of any other securities of the
          Company (including,  without limitation,  any other Preferred Stock or
          Warrants) subject to a limitation on conversion or exercise  analogous
          to the limitation  contained herein  beneficially owned by such Holder
          or  any of its  affiliates.  Except  as  set  forth  in the  preceding
          sentence,  for purposes of this Section 2(d)(i),  beneficial ownership
          shall be calculated  in accordance  with Section 13(d) of the Exchange
          Act and the rules and  regulations  promulgated  thereunder,  it being
          acknowledged by a Holder that the Company is not  representing to such
          Holder that such  calculation  is in compliance  with Section 13(d) of
          the  Exchange  Act and  such  Holder  is  solely  responsible  for any
          schedules required to be filed in accordance therewith.  To the extent
          that the  limitation  contained  in this  Section  2(d)  applies,  the
          determination  of whether this Warrant is exercisable  (in relation to
          other  securities  owned by such Holder  together with any Affiliates)
          and of which a portion of this Warrant is exercisable  shall be in the
          sole  discretion  of a  Holder,  and the  submission  of a  Notice  of
          Exercise shall be deemed to be each Holder's  determination of whether
          this Warrant is exercisable (in relation to other  securities owned by
          such Holder together with any Affiliates) and of which portion of this
          Warrant  is  exercisable,  in each  case  subject  to  such  aggregate
          percentage  limitation,  and the Company  shall have no  obligation to
          verify or confirm the accuracy of such determination.  In addition,  a
          determination  as to any group status as  contemplated  above shall be
          determined  in  accordance  with Section 13(d) of the Exchange Act and
          the rules and regulations promulgated thereunder. For purposes of this
          Section  2(d),  in  determining  the number of  outstanding  shares of
          Common Stock, a Holder may rely on the number of outstanding shares of
          Common Stock as reflected in (x) the  Company's  most recent Form 10-Q
          or  Form  10-K,  as  the  case  may  be,  (y)  a  more  recent  public
          announcement  by the Company or (z) any other notice by the Company or
          the  Company's  Transfer  Agent  setting forth the number of shares of
          Common  Stock  outstanding.  Upon the  written  or oral  request  of a
          Holder,  the Company shall within two Trading Days confirm  orally and
          in  writing to such  Holder the number of shares of Common  Stock then
          outstanding.  In any case, the number of outstanding  shares of Common
          Stock shall be  determined  after giving  effect to the  conversion or
          exercise of securities of the Company, including this Warrant, by such
          Holder or its  Affiliates  since the date as of which  such  number of
          outstanding  shares of  Common  Stock was  reported.  The  "Beneficial
          Ownership  Limitation"  shall be 4.99% of the  number of shares of the
          Common  Stock  outstanding  immediately  after  giving  effect  to the
          issuance  of shares of Common  Stock  issuable  upon  exercise of this
          Warrant.  The  Beneficial  Ownership  Limitation  provisions  of  this
          Section 2(d)(i) may be waived by such Holder,  at the election of such
          Holder,  upon not less than

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<PAGE>

          61  days'  prior  notice  to the  Company  to  change  the  Beneficial
          Ownership  Limitation  to 9.99% of the  number of shares of the Common
          Stock  outstanding  immediately after giving effect to the issuance of
          shares  of  Common  Stock  upon  exercise  of  this  Warrant,  and the
          provisions of this Section 2(d) shall  continue to apply.  Upon such a
          change by a Holder of the Beneficial  Ownership  Limitation  from such
          4.99% limitation to such 9.99%  limitation,  the Beneficial  Ownership
          Limitation may not be further waived by such Holder. The provisions of
          this  paragraph  shall  be  construed  and  implemented  in  a  manner
          otherwise  than in strict  conformity  with the terms of this  Section
          2(d)(i) to correct this paragraph (or any portion hereof) which may be
          defective  or  inconsistent  with the  intended  Beneficial  Ownership
          Limitation   herein  contained  or  to  make  changes  or  supplements
          necessary or desirable to properly give effect to such limitation. The
          limitations  contained  in this  paragraph  shall apply to a successor
          holder of this  Warrant.

               ii. TRADING MARKET RESTRICTIONS.  If the Company has not obtained
          Shareholder  Approval  (as  defined  below),  then the Company may not
          issue  upon  exercise  of this  Warrant  a number  of shares of Common
          Stock,  which,  when aggregated with any shares of Common Stock issued
          (A) upon  conversion  of or as payment of dividends  on the  Preferred
          Stock  issued  pursuant  to the  Purchase  Agreement,  (B) upon  prior
          exercise of this or any other Warrant issued  pursuant to the Purchase
          Agreement  and (C) pursuant to any warrants  issued to any  registered
          broker-dealer  as a fee in connection with the Securities  pursuant to
          the Purchase  Agreement,  would exceed 19.999% of the number of shares
          of Common Stock  outstanding on the Trading Day immediately  preceding
          the Closing Date (such number of shares, the "ISSUABLE  MAXIMUM").  If
          on any  attempted  exercise of this  Warrant,  the issuance of Warrant
          Shares  would exceed the  Issuable  Maximum and the Company  shall not
          have  previously  obtained  the vote of  shareholders  to approve  the
          issuance of shares of Common Stock in excess of the  Issuable  Maximum
          pursuant to the terms hereof (the  "SHAREHOLDER  APPROVAL"),  then the
          Company shall issue to the Holder  requesting a Warrant  exercise such
          number of Warrant  Shares as may be issued below the Issuable  Maximum
          and, with respect to the remainder of the aggregate  number of Warrant
          Shares,  this  Warrant  shall  not be  exercisable  until  and  unless
          Shareholder Approval has been obtained.

          e) MECHANICS OF EXERCISE.

               i.  AUTHORIZATION OF WARRANT SHARES.  The Company  covenants that
          all  Warrant  Shares  which may be  issued  upon the  exercise  of the
          purchase rights represented by this Warrant will, upon exercise of the
          purchase  rights  represented  by this  Warrant,  be duly  authorized,
          validly issued,  fully paid and nonassessable and free from all taxes,
          liens and  charges  created  by the  Company  in  respect of the issue
          thereof  (other  than  taxes  in  respect  of any  transfer  occurring
          contemporaneously with such issue).

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<PAGE>

               ii.  DELIVERY OF  CERTIFICATES  UPON EXERCISE.  Certificates  for
          shares purchased  hereunder shall be transmitted by the transfer agent
          of the Company to the Holder by crediting  the account of the Holder's
          prime broker with the  Depository  Trust  Company  through its Deposit
          Withdrawal  Agent  Commission  ("DWAC")  system  if the  Company  is a
          participant in such system,  and otherwise by physical delivery to the
          address  specified  by the Holder in the Notice of  Exercise  within 3
          Trading  Days  from the  delivery  to the  Company  of the  Notice  of
          Exercise Form,  surrender of this Warrant and payment of the aggregate
          Exercise Price as set forth above  ("WARRANT  SHARE  DELIVERY  DATE").
          This  Warrant  shall be deemed to have been  exercised on the date the
          Exercise Price is received by the Company. The Warrant Shares shall be
          deemed  to have  been  issued,  and  Holder  or any  other  person  so
          designated to be named therein shall be deemed to have become a holder
          of record of such shares for all purposes,  as of the date the Warrant
          has been exercised by payment to the Company of the Exercise Price (or
          by cashless exercise,  if permitted) and all taxes required to be paid
          by the  Holder,  if any,  pursuant to Section  2(e)(vii)  prior to the
          issuance of such shares, have been paid.

               iii.  DELIVERY OF NEW  WARRANTS  UPON  EXERCISE.  If this Warrant
          shall have been exercised in part,  the Company shall,  upon surrender
          of  this  Warrant  certificate,   at  the  time  of  delivery  of  the
          certificate or certificates  representing  Warrant Shares,  deliver to
          Holder a new Warrant  evidencing  the rights of Holder to purchase the
          unpurchased  Warrant  Shares  called  for by this  Warrant,  which new
          Warrant shall in all other respects be identical with this Warrant.

               iv. RESCISSION RIGHTS. If the Company fails to cause its transfer
          agent  to  transmit  to  the  Holder  a  certificate  or  certificates
          representing  the Warrant Shares pursuant to this Section  2(e)(iv) by
          the Warrant Share Delivery  Date,  then the Holder will have the right
          to rescind such exercise.

               v.   COMPENSATION   FOR  BUY-IN  ON  FAILURE  TO  TIMELY  DELIVER
          CERTIFICATES UPON EXERCISE.  In addition to any other rights available
          to the Holder,  if the Company  fails to cause its  transfer  agent to
          transmit to the Holder a certificate or certificates  representing the
          Warrant Shares  pursuant to an exercise on or before the Warrant Share
          Delivery  Date,  and if after such date the Holder is  required by its
          broker to purchase (in an open market transaction or otherwise) shares
          of Common Stock to deliver in  satisfaction of a sale by the Holder of
          the Warrant  Shares which the Holder  anticipated  receiving upon such
          exercise (a  "BUY-IN"),  then the Company shall (1) pay in cash to the
          Holder  the  amount by which (x) the  Holder's  total  purchase  price
          (including  brokerage  commissions,  if any) for the  shares of Common
          Stock so purchased  exceeds (y) the amount

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<PAGE>

          obtained  by  multiplying  (A) the number of Warrant  Shares  that the
          Company was required to deliver to the Holder in  connection  with the
          exercise at issue  times (B) the price at which the sell order  giving
          rise to such purchase  obligation was executed,  and (2) at the option
          of the  Holder,  either  reinstate  the  portion  of the  Warrant  and
          equivalent  number of Warrant  Shares for which such  exercise was not
          honored or deliver to the Holder the number of shares of Common  Stock
          that would have been issued had the Company  timely  complied with its
          exercise  and delivery  obligations  hereunder.  For  example,  if the
          Holder purchases Common Stock having a total purchase price of $11,000
          to cover a Buy-In with respect to an  attempted  exercise of shares of
          Common Stock with an aggregate sale price giving rise to such purchase
          obligation of $10,000,  under clause (1) of the immediately  preceding
          sentence the Company shall be required to pay the Holder  $1,000.  The
          Holder shall provide the Company written notice indicating the amounts
          payable to the Holder in respect of the Buy-In  and,  upon  request of
          the Company, evidence of the amount of such loss. Nothing herein shall
          limit a Holder's  right to pursue any other  remedies  available to it
          hereunder, at law or in equity including, without limitation, a decree
          of specific  performance  and/or injunctive relief with respect to the
          Company's failure to timely deliver  certificates  representing shares
          of Common Stock upon  exercise of the Warrant as required  pursuant to
          the terms hereof.

               vi. NO FRACTIONAL  SHARES OR SCRIP. No fractional shares or scrip
          representing  fractional  shares  shall be issued upon the exercise of
          this  Warrant.  As to any  fraction  of a  share  which  Holder  would
          otherwise  be  entitled to purchase  upon such  exercise,  the Company
          shall at its election, either pay a cash adjustment in respect of such
          final  fraction in an amount equal to such fraction  multiplied by the
          Exercise Price or round up to the next whole share.

               vii.  CHARGES,  TAXES AND EXPENSES.  Issuance of certificates for
          Warrant  Shares  shall be made  without  charge to the  Holder for any
          issue or transfer  tax or other  incidental  expense in respect of the
          issuance of such certificate, all of which taxes and expenses shall be
          paid by the Company, and such certificates shall be issued in the name
          of the  Holder  or in such  name or  names as may be  directed  by the
          Holder; provided,  however, that in the event certificates for Warrant
          Shares are to be issued in a name  other than the name of the  Holder,
          this Warrant when surrendered for exercise shall be accompanied by the
          Assignment Form attached  hereto duly executed by the Holder;  and the
          Company  may  require,  as a condition  thereto,  the payment of a sum
          sufficient to reimburse it for any transfer tax incidental thereto.

               viii.   CLOSING  OF  BOOKS.   The  Company  will  not  close  its
          stockholder  books or records in any manner which  prevents the timely
          exercise of this Warrant, pursuant to the terms hereof.

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<PAGE>

          all Notices of Exercise delivered by 6:30 p.m. (New York City time) on
          the Call Date, (ii) the  Registration  Statement shall be effective as
          to all Warrant Shares and the prospectus  thereunder available for use
          by the Holder for the resale of all such Warrant  Shares and (iii) the
          Common  Stock  shall be listed or quoted for  trading  on the  Trading
          Market,  and (iv) there is a sufficient number of authorized shares of
          Common  Stock for  issuance of all  Securities  under the  Transaction
          Documents, and (v) the issuance of the shares shall not cause a breach
          of any  provision  of 2(d)  herein.  The  Company's  right to Call the
          Warrant  shall be exercised  ratably  among the Holders  based on each
          Holder's initial purchase of Warrants.

          SECTION 3. CERTAIN ADJUSTMENTS.

               a) STOCK DIVIDENDS AND SPLITS. If the Company,  at any time while
          this Warrant is  outstanding:  (A) pays a stock  dividend or otherwise
          make a distribution or  distributions on shares of its Common Stock or
          any other equity or equity equivalent  securities payable in shares of
          Common Stock  (which,  for  avoidance of doubt,  shall not include any
          shares of Common  Stock  issued by the Company  upon  exercise of this
          Warrant),  (B)  subdivides  outstanding  shares of Common Stock into a
          larger  number of shares,  (C) combines  (including  by way of reverse
          stock split)  outstanding shares of Common Stock into a smaller number
          of shares, or (D) issues by  reclassification  of shares of the Common
          Stock any shares of capital  stock of the  Company,  then in each case
          the  Exercise  Price  shall be  multiplied  by a fraction of which the
          numerator  shall be the  number of shares of Common  Stock  (excluding
          treasury shares, if any) outstanding immediately before such event and
          of which the denominator shall be the number of shares of Common Stock
          outstanding  immediately  after  such  event and the  number of shares
          issuable  upon  exercise  of this  Warrant  shall  be  proportionately
          adjusted.  Any  adjustment  made  pursuant to this  Section 3(a) shall
          become   effective   immediately   after  the  record   date  for  the
          determination  of  stockholders  entitled to receive such  dividend or
          distribution  and  shall  become  effective   immediately   after  the
          effective  date  in  the  case  of  a   subdivision,   combination  or
          re-classification.

               b)  SUBSEQUENT  EQUITY  SALES.  If the Company or any  Subsidiary
          thereof, as applicable, at any time while this Warrant is outstanding,
          shall sell or grant any option to  purchase or sell or grant any right
          to  reprice  its  securities,  or  otherwise  dispose  of or issue (or
          announce  any offer,  sale,  grant or any option to  purchase or other
          disposition)  any Common Stock or Common Stock  Equivalents  entitling
          any Person to acquire  shares of Common Stock,  at an effective  price
          per share less than the then applicable Conversion Price (as such term
          is defined in the Certificate of  Designations) of the Preferred Stock
          (such issuances collectively, a "DILUTIVE ISSUANCE") (if the holder of
          the Common  Stock or Common Stock  Equivalents  so issued shall at any
          time,  whether by  operation  of  purchase  price  adjustments,  reset
          provisions,  floating  conversion,  exercise  or  exchange  prices  or
          otherwise,  or due to warrants,  options or rights per share which are
          issued in connection with such issuance, be entitled to receive shares
          of Common Stock at an effective price per share which is less than the
          then  applicable  Conversion  Price,  such issuance shall be deemed to
          have occurred for less than the then  applicable  Conversion  Price on
          such date of the Dilutive Issuance),  then the Exercise Price shall be
          reduced  and only  reduced  by  multiplying  the  Exercise  Price by a
          fraction, the numerator

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<PAGE>

          of  which  is  the  number  of  shares  of  Common  Stock  issued  and
          outstanding immediately prior to the Dilutive Issuance plus the number
          of shares of Common Stock which the offering  price for such  Dilutive
          Issuance would purchase at the then applicable  Conversion  Price, and
          the  denominator  of which shall be the sum of the number of shares of
          Common Stock issued and outstanding  immediately prior to the Dilutive
          Issuance  plus the  number  of  shares  of  Common  Stock so issued or
          issuable in  connection  with the Dilutive  Issuance and the number of
          Warrant  Shares  issuable  hereunder  shall be increased such that the
          aggregate Exercise Price payable hereunder,  after taking into account
          the decrease in the Exercise  Price,  shall be equal to the  aggregate
          Exercise Price prior to such adjustment. Such adjustment shall be made
          whenever  such Common  Stock or Common Stock  Equivalents  are issued.
          Notwithstanding  the foregoing,  no adjustments shall be made, paid or
          issued under this Section 3(b) in respect of an Exempt  Issuance.  The
          Company shall notify the Holder in writing,  no later than the Trading
          Day  following  the  issuance  of any  Common  Stock or  Common  Stock
          Equivalents subject to this section, indicating therein the applicable
          issuance price, or applicable reset price, exchange price,  conversion
          price and other  pricing  terms (such  notice the  "DILUTIVE  ISSUANCE
          NOTICE").  For purposes of  clarification,  whether or not the Company
          provides a Dilutive  Issuance  Notice  pursuant to this Section  3(b),
          upon the occurrence of any Dilutive  Issuance,  after the date of such
          Dilutive  Issuance  the  Holder  is  entitled  to  receive a number of
          Warrant Shares based upon the adjusted  Exercise  Price  regardless of
          whether the Holder accurately refers to the adjusted Exercise Price in
          the Notice of Exercise.

               c) SUBSEQUENT RIGHTS OFFERINGS. If the Company, at any time while
          the Warrant is outstanding, shall issue rights, options or warrants to
          all  holders of Common  Stock (and not to Holders)  entitling  them to
          subscribe for or purchase  shares of Common Stock at a price per share
          less  than the  VWAP at the  record  date  mentioned  below,  then the
          Exercise  Price  shall be  multiplied  by a  fraction,  of  which  the
          denominator  shall  be  the  number  of  shares  of the  Common  Stock
          outstanding  on the date of issuance  of such rights or warrants  plus
          the  number  of   additional   shares  of  Common  Stock  offered  for
          subscription  or  purchase,  and of which the  numerator  shall be the
          number  of  shares  of the  Common  Stock  outstanding  on the date of
          issuance of such rights or  warrants  plus the number of shares  which
          the aggregate  offering price of the total number of shares so offered
          (assuming receipt by the Company in full of all consideration  payable
          upon exercise of such rights,  options or warrants)  would purchase at
          such VWAP.  Such  adjustment  shall be made  whenever  such  rights or
          warrants are issued, and shall become effective  immediately after the
          record date for the determination of stockholders  entitled to receive
          such  rights,  options or  warrants.  If any such  rights,  options or
          warrants expire without having been  exercised,  the Exercise Price as
          adjusted upon the issuance of such rights,  options or warrants  shall
          be  readjusted  to the Exercise  Price which would have been in effect
          had an adjustment been made on the basis that only  additional  shares
          of Common Stock so issued were the additional  shares of Common Stock,
          if  any,  actually  issued  or sold on the  exercise  of such  rights,
          options or warrants and such  additional  shares of Common  Stock,  if
          any, were issued or sold for the  consideration  actually  received by
          the Corporation upon such exercise,  plus the  consideration,  if any,
          actually  received  by the  Corporation  for the  granting of all such
          rights, options or warrants,  whether or not exercised,  provided that
          such readjustment shall not apply to prior exercises of the Warrant.

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<PAGE>

               d) PRO RATA  DISTRIBUTIONS.  If the Company, at any time prior to
          the Termination  Date, shall distribute to all holders of Common Stock
          (and not to Holders of the Warrants)  evidences of its indebtedness or
          assets  (including  cash and cash  dividends) or rights or warrants to
          subscribe  for or purchase  any  security  other than the Common Stock
          (which shall be subject to Section  3(b)),  then in each such case the
          Exercise Price shall be adjusted by multiplying  the Exercise Price in
          effect immediately prior to the record date fixed for determination of
          stockholders  entitled to receive such  distribution  by a fraction of
          which the  denominator  shall be the VWAP  determined as of the record
          date mentioned above, and of which the numerator shall be such VWAP on
          such  record  date less the then per share fair  market  value at such
          record date of the portion of such assets or evidence of  indebtedness
          so distributed applicable to one outstanding share of the Common Stock
          as determined by the Board of Directors in good faith.  In either case
          the  adjustments  shall be  described  in a statement  provided to the
          Holder of the  portion  of  assets or  evidences  of  indebtedness  so
          distributed  or such  subscription  rights  applicable to one share of
          Common  Stock.  Such  adjustment  shall  be  made  whenever  any  such
          distribution is made and shall become effective  immediately after the
          record date mentioned above.

               e) FUNDAMENTAL TRANSACTION. If, at any time while this Warrant is
          outstanding,  (A) the Company effects any merger or  consolidation  of
          the Company with or into another  Person,  (B) the Company effects any
          sale of all or  substantially  all of its assets in one or a series of
          related transactions,  (C) any tender offer or exchange offer (whether
          by the  Company or  another  Person) is  completed  pursuant  to which
          holders of Common  Stock are  permitted  to tender or  exchange  their
          shares for other  securities,  cash or  property,  or (D) the  Company
          effects any  reclassification  of the Common  Stock or any  compulsory
          share  exchange  pursuant  to which the  Common  Stock is  effectively
          converted into or exchanged for other securities, cash or property (in
          any such case, a "FUNDAMENTAL TRANSACTION"), then,

                    i.  subject  to  clause  (ii)  below,  upon  any  subsequent
               exercise  of this  Warrant,  the  Holder  shall have the right to
               receive,  for each  Warrant  Share that would have been  issuable
               upon such exercise  immediately  prior to the  occurrence of such
               Fundamental  Transaction,  at the option of the Holder,  (a) upon
               exercise of this Warrant and payment of the Exercise  Price,  the
               number of shares of Common  Stock of the  successor  or acquiring
               corporation   or  of  the  Company,   if  it  is  the   surviving
               corporation,  and any additional  consideration  (the  "ALTERNATE
               CONSIDERATION")   receivable   upon  or  as  a  result   of  such
               reorganization,   reclassification,   merger,   consolidation  or
               disposition  of  assets  by a Holder  of the  number of shares of
               Common  Stock for which this Warrant is  exercisable  immediately
               prior to such event or (b) if the  Company is  acquired in an all
               cash  transaction,  cash  equal to the value of this  Warrant  as
               determined in accordance  with the  Black-Scholes  option pricing
               formula; or

                    ii. if the Company is  acquired in an all cash  transaction,
               in the option of the Company or its  acquiror,  the Holder may be
               paid cash  equal to the

                                       9
<PAGE>

               value  of this  Warrant  as  determined  in  accordance  with the
               Black-Scholes  option  pricing  formula and upon  payment of such
               cash, the Warrant shall terminate.

For  purposes  of any such  exercise  by the Holder,  the  determination  of the
Exercise  Price  shall be  appropriately  adjusted  to  apply to such  Alternate
Consideration based on the amount of Alternate Consideration issuable in respect
of one share of Common Stock in such  Fundamental  Transaction,  and the Company
shall  apportion  the  Exercise  Price among the  Alternate  Consideration  in a
reasonable manner  reflecting the relative value of any different  components of
the Alternate Consideration.  If holders of Common Stock are given any choice as
to the securities, cash or property to be received in a Fundamental Transaction,
then the Holder shall be given the same choice as to the Alternate Consideration
it  receives  upon any  exercise  of this  Warrant  following  such  Fundamental
Transaction. To the extent necessary to effectuate the foregoing provisions, any
successor to the Company or  surviving  entity in such  Fundamental  Transaction
shall issue to the Holder a new warrant consistent with the foregoing provisions
and  evidencing  the Holder's  right to exercise  such  warrant  into  Alternate
Consideration.  The  terms of any  agreement  pursuant  to  which a  Fundamental
Transaction  is effected  shall  include terms  requiring any such  successor or
surviving entity to comply with the provisions of this Section 3(d) and insuring
that this Warrant (or any such replacement  security) will be similarly adjusted
upon any subsequent transaction analogous to a Fundamental Transaction.

               f) CALCULATIONS.  All calculations  under this Section 3 shall be
          made to the  nearest  cent or the nearest  1/100th of a share,  as the
          case may be. For  purposes of this  Section 3, the number of shares of
          Common  Stock deemed to be issued and  outstanding  as of a given date
          shall be the sum of the  number of shares of Common  Stock  (excluding
          treasury shares, if any) issued and outstanding.

               g) VOLUNTARY  ADJUSTMENT BY COMPANY.  The Company may at any time
          during the term of this Warrant reduce the then current Exercise Price
          to any  amount and for any period of time  deemed  appropriate  by the
          Board of Directors of the Company.

               h) NOTICE TO HOLDERS.

                    i. ADJUSTMENT TO EXERCISE PRICE. Whenever the Exercise Price
               is adjusted  pursuant  to any  provision  of this  Section 3, the
               Company shall promptly mail to each Holder a notice setting forth
               the  Exercise  Price after such  adjustment  and setting  forth a
               brief  statement of the facts requiring such  adjustment.  If the
               Company issues a variable rate security,  despite the prohibition
               thereon in the Purchase Agreement, the Company shall be deemed to
               have  issued  Common  Stock or Common  Stock  Equivalents  at the
               lowest  possible  conversion  or  exercise  price at  which  such
               securities  may  be  converted  or  exercised  in the  case  of a
               Variable Rate Transaction (as defined in the Purchase Agreement).

                                       10
<PAGE>

                    ii. NOTICE TO ALLOW  EXERCISE BY HOLDER.  If (A) the Company
               shall declare a dividend (or any other  distribution  in whatever
               form) on the  Common  Stock;  (B) the  Company  shall  declare  a
               special  nonrecurring  cash  dividend on or a  redemption  of the
               Common Stock; (C) the Company shall authorize the granting to all
               holders of the Common Stock  rights or warrants to subscribe  for
               or  purchase  any shares of capital  stock of any class or of any
               rights; (D) the approval of any stockholders of the Company shall
               be required in connection with any reclassification of the Common
               Stock,  any  consolidation  or merger to which the  Company  is a
               party,  any sale or transfer of all or  substantially  all of the
               assets of the Company,  of any compulsory  share exchange whereby
               the Common  Stock is  converted  into other  securities,  cash or
               property;  (E) the  Company  shall  authorize  the  voluntary  or
               involuntary dissolution, liquidation or winding up of the affairs
               of the Company; then, in each case, the Company shall cause to be
               mailed to the Holder at its last  address as it shall appear upon
               the Warrant  Register of the Company,  at least 20 calendar  days
               prior to the  applicable  record or  effective  date  hereinafter
               specified,  a notice stating (x) the date on which a record is to
               be  taken  for  the  purpose  of  such  dividend,   distribution,
               redemption,  rights  or  warrants,  or if a  record  is not to be
               taken,  the date as of which the  holders of the Common  Stock of
               record  to  be   entitled   to  such   dividend,   distributions,
               redemption,  rights or warrants are to be  determined  or (y) the
               date on which such reclassification, consolidation, merger, sale,
               transfer or share  exchange is  expected to become  effective  or
               close,  and the date as of which it is expected  that  holders of
               the Common  Stock of record  shall be entitled to exchange  their
               shares of the Common Stock for securities, cash or other property
               deliverable upon such  reclassification,  consolidation,  merger,
               sale,  transfer or share  exchange;  provided that the failure to
               mail such notice or any defect therein or in the mailing  thereof
               shall not affect the validity of the corporate action required to
               be specified  in such notice.  The Holder is entitled to exercise
               this Warrant  during the 20-day period  commencing on the date of
               such notice to the effective  date of the event  triggering  such
               notice.

          SECTION 4. TRANSFER OF WARRANT.

               a)  TRANSFERABILITY.  The  Warrant  and the  other  rights of the
          Holder  pursuant to this Warrant  certificate  are not severable  from
          this Warrant certificate,  and shall not be assignable or transferable
          except in  connection  with a transfer or  assignment  of this Warrant
          certificate  in  accordance  with the  terms  hereof.  Any  instrument
          purporting  to make a transfer  or  assignment  in  violation  of this
          Section  4(a)  shall be void and of no effect.  Subject to  compliance
          with any  applicable  securities  laws and the conditions set forth in
          Section  4(d)  hereof  and to the  provisions  of  Section  4.1 of the
          Purchase Agreement,  this Warrant and all rights hereunder (including,
          without  limitation,  any registration  rights) are  transferable,  in
          whole or in part,  upon  surrender of this Warrant  certificate at the
          principal office of the Company or its designated agent, together with
          a  written  assignment  of  this  Warrant  substantially  in the  form
          attached  hereto duly

                                       11
<PAGE>

          executed by the Holder or its agent or attorney  and funds  sufficient
          to pay any transfer  taxes  payable upon the making of such  transfer.
          Upon  compliance  with  the  foregoing  and  such  surrender  and,  if
          required,  such  payment,  the Company shall execute and deliver a new
          Warrant or Warrants in the name of the  assignee or  assignees  and in
          the  denomination  or  denominations  specified in such  instrument of
          assignment,  and shall issue to the assignor a new Warrant  evidencing
          the portion of this  Warrant not so assigned,  and this Warrant  shall
          promptly  be  cancelled.  A  Warrant,  if  properly  assigned,  may be
          exercised by a new holder for the purchase of Warrant  Shares  without
          having a new Warrant issued.

               b) NEW  WARRANTS.  This  Warrant may be divided or combined  with
          other Warrants upon presentation hereof at the aforesaid office of the
          Company,  together  with a  written  notice  specifying  the names and
          denominations  in which new Warrants  are to be issued,  signed by the
          Holder or its agent or attorney.  Subject to  compliance  with Section
          4(a),  as to any  transfer  which may be involved in such  division or
          combination,  the Company  shall  execute and deliver a new Warrant or
          Warrants  in  exchange  for the  Warrant or  Warrants to be divided or
          combined in accordance with such notice.

               c) WARRANT  REGISTER.  The Company  shall  register this Warrant,
          upon  records to be  maintained  by the Company for that  purpose (the
          "WARRANT REGISTER"), in the name of the record Holder hereof from time
          to time. The Company may deem and treat the registered  Holder of this
          Warrant as the  absolute  owner hereof for the purpose of any exercise
          hereof or any distribution to the Holder,  and for all other purposes,
          absent actual notice to the contrary.

               d) TRANSFER  RESTRICTIONS.  If, at the time of the  surrender  of
          this  Warrant in  connection  with any transfer of this  Warrant,  the
          transfer  of this  Warrant  shall  not be  registered  pursuant  to an
          effective  registration  statement  under the Securities Act and under
          applicable state securities or blue sky laws, the Company may require,
          as a  condition  of  allowing  such  transfer  (i) that the  Holder or
          transferee of this Warrant, as the case may be, furnish to the Company
          a  written  opinion  of  counsel  (which  opinion  shall  be in  form,
          substance  and scope  customary  for opinions of counsel in comparable
          transactions)  to the effect that such  transfer  may be made  without
          registration  under  the  Securities  Act and under  applicable  state
          securities  or blue sky  laws,  (ii)  that the  holder  or  transferee
          execute and deliver to the  Company an  investment  letter in form and
          substance  acceptable to the Company and (iii) that the  transferee be
          an "accredited investor" as defined in Rule 501(a)(1), (a)(2), (a)(3),
          (a)(7), or (a)(8) promulgated under the Securities Act or a "qualified
          institutional  buyer" as defined in Rule 144A(a) under the  Securities
          Act.

          SECTION 5. MISCELLANEOUS.

               a) NO RIGHTS AS SHAREHOLDER UNTIL EXERCISE. This Warrant does not
          entitle  the  Holder  to  any  voting  rights  or  other  rights  as a
          shareholder  of the Company prior to the exercise  hereof as set forth
          in Section 2(e)(ii).

                                       12
<PAGE>

               b) LOSS, THEFT, DESTRUCTION OR MUTILATION OF WARRANT. The Company
          covenants  that upon  receipt by the  Company of  evidence  reasonably
          satisfactory  to it of the loss,  theft,  destruction or mutilation of
          this Warrant or any stock certificate  relating to the Warrant Shares,
          and in case of loss,  theft or  destruction,  of indemnity or security
          reasonably  satisfactory  to it  (which,  in the case of the  Warrant,
          shall not  include the posting of any bond),  and upon  surrender  and
          cancellation of such Warrant or stock certificate,  if mutilated,  the
          Company  will make and deliver a new Warrant or stock  certificate  of
          like tenor and dated as of such cancellation,  in lieu of such Warrant
          or stock certificate.

               c) SATURDAYS,  SUNDAYS,  HOLIDAYS,  ETC. If the last or appointed
          day for the  taking  of any  action  or the  expiration  of any  right
          required  or granted  herein  shall not be a Business  Day,  then such
          action  may be  taken  or such  right  may be  exercised  on the  next
          succeeding Business Day.

               d) AUTHORIZED SHARES.

                    The Company  covenants that during the period the Warrant is
               outstanding,  it will  reserve from its  authorized  and unissued
               Common  Stock a  sufficient  number of shares to provide  for the
               issuance of the Warrant  Shares upon the exercise of any purchase
               rights under this Warrant. The Company further covenants that its
               issuance of this Warrant shall  constitute  full authority to its
               officers  who  are  charged  with  the  duty of  executing  stock
               certificates to execute and issue the necessary  certificates for
               the Warrant Shares upon the exercise of the purchase rights under
               this Warrant. The Company will take all such reasonable action as
               may be necessary to assure that such Warrant Shares may be issued
               as provided  herein  without  violation of any  applicable law or
               regulation,  or of any  requirements  of the Trading  Market upon
               which the Common Stock may be listed.

                    Except  and to the extent as waived or  consented  to by the
               Holder, the Company shall not by any action,  including,  without
               limitation,  amending its certificate of incorporation or through
               any reorganization,  transfer of assets,  consolidation,  merger,
               dissolution,  issue or sale of securities or any other  voluntary
               action,  avoid or seek to avoid the  observance or performance of
               any of the terms of this  Warrant,  but will at all times in good
               faith  assist in the  carrying  out of all such  terms and in the
               taking of all such actions as may be necessary or  appropriate to
               protect the rights of Holder as set forth in this Warrant against
               impairment. Without limiting the generality of the foregoing, the
               Company will (a) not increase the par value of any Warrant Shares
               above the amount payable therefor upon such exercise  immediately
               prior to such increase in par value,  (b) take all such action as
               may be  necessary  or  appropriate  in order that the Company may
               validly and legally  issue fully paid and  nonassessable  Warrant
               Shares  upon  the   exercise  of  this   Warrant,   and  (c)  use
               commercially    reasonable    efforts    to   obtain   all   such
               authorizations, exemptions or consents from any public regulatory
               body having  jurisdiction  thereof as may be  necessary to enable
               the Company to perform its obligations under this Warrant.

                                       13
<PAGE>

                    Before taking any action which would result in an adjustment
               in the  number of  Warrant  Shares  for  which  this  Warrant  is
               exercisable  or in the Exercise  Price,  the Company shall obtain
               all  such  authorizations  or  exemptions  thereof,  or  consents
               thereto,  as may be necessary from any public  regulatory body or
               bodies having jurisdiction thereof.

               e)  JURISDICTION.  All  questions  concerning  the  construction,
          validity,  enforcement  and  interpretation  of this Warrant  shall be
          determined  in  accordance   with  the   provisions  of  the  Purchase
          Agreement.

               f) RESTRICTIONS.  The Holder acknowledges that the Warrant Shares
          acquired upon the exercise of this Warrant,  if not  registered,  will
          have restrictions upon resale imposed by state and federal  securities
          laws.

               g) NONWAIVER AND  EXPENSES.  No course of dealing or any delay or
          failure to exercise  any right  hereunder  on the part of Holder shall
          operate  as a waiver of such  right or  otherwise  prejudice  Holder's
          rights,  powers or remedies,  notwithstanding the fact that all rights
          hereunder  terminate on the Termination Date. If the Company willfully
          and  knowingly  fails to comply with any  provision  of this  Warrant,
          which results in any material damages to the Holder, the Company shall
          pay to Holder such amounts as shall be  sufficient  to cover any costs
          and  expenses  including,  but not limited to,  reasonable  attorneys'
          fees, including those of appellate proceedings,  incurred by Holder in
          collecting any amounts due pursuant  hereto or in otherwise  enforcing
          any of its rights, powers or remedies hereunder.

               h) NOTICES.  Any notice,  request or other  document  required or
          permitted to be given or delivered to the Holder by the Company  shall
          be delivered in accordance with the notice  provisions of the Purchase
          Agreement.

               i) LIMITATION OF LIABILITY.  No provision  hereof, in the absence
          of any  affirmative  action by  Holder to  exercise  this  Warrant  to
          purchase  Warrant Shares,  and no enumeration  herein of the rights or
          privileges  of Holder,  shall give rise to any liability of Holder for
          the  purchase  price of any Common  Stock or as a  stockholder  of the
          Company,  whether  such  liability  is  asserted  by the Company or by
          creditors of the Company.

               j) REMEDIES.  Holder,  in addition to being  entitled to exercise
          all rights  granted by law,  including  recovery of  damages,  will be
          entitled to specific performance of its rights under this Warrant. The
          Company   agrees  that   monetary   damages   would  not  be  adequate
          compensation  for any loss incurred by reason of a breach by it of the
          provisions  of this  Warrant  and  hereby  agrees  to waive and not to
          assert  the  defense in any action  for  specific  performance  that a
          remedy at law would be adequate.

               k) SUCCESSORS AND ASSIGNS. Subject to applicable securities laws,
          this  Warrant and the rights and  obligations  evidenced  hereby shall
          inure to the  benefit of and be  binding  upon the  successors  of the
          Company  and the  successors  and  permitted  assigns of  Holder.  The
          provisions  of this  Warrant are intended to be for the benefit of all
          Holders from time to time of this Warrant and shall be  enforceable by
          any such Holder or holder of Warrant Shares.

                                       14
<PAGE>

               l)  AMENDMENT.  This  Warrant  may be  modified or amended or the
          provisions  hereof waived with the written  consent of the Company and
          the Holder.

               m)  SEVERABILITY.  Wherever  possible,  each  provision  of  this
          Warrant  shall be  interpreted  in such manner as to be effective  and
          valid under applicable law, but if any provision of this Warrant shall
          be prohibited by or invalid under applicable law, such provision shall
          be  ineffective  to the  extent  of such  prohibition  or  invalidity,
          without invalidating the remainder of such provisions or the remaining
          provisions of this Warrant.

               n)  HEADINGS.  The  headings  used  in this  Warrant  are for the
          convenience  of  reference  only and shall not,  for any  purpose,  be
          deemed a part of this Warrant.

                              ********************

                                       15
<PAGE>

     IN WITNESS  WHEREOF,  the Company has caused this Warrant to be executed by
its officer thereunto duly authorized.

Dated:  March ___, 2006

                                               ELITE PHARMACEUTICALS, INC.

                                               By:______________________________
                                                  Name: Bernard J. Berk
                                                  Title: Chief Executive Officer

                                       16
<PAGE>

                               NOTICE OF EXERCISE

TO:      ELITE PHARMACEUTICALS, INC.

     (1) The undersigned  hereby elects to purchase  ________  Warrant Shares of
the Company  pursuant to the terms of the attached Warrant (only if exercised in
full), and tenders herewith payment of the exercise price in full, together with
all applicable transfer taxes, if any.

     (2) Payment shall take the form of (check applicable box):

          [ ] in lawful money of the United States; or

          [ ] [if permitted] the  cancellation  of such number of Warrant Shares
          as  is  necessary,  in  accordance  with  the  formula  set  forth  in
          subsection  2(c), to exercise this Warrant with respect to the maximum
          number of Warrant Shares purchasable pursuant to the cashless exercise
          procedure set forth in subsection 2(c).

     (3) Please issue a certificate or  certificates  representing  said Warrant
Shares in the name of the  undersigned  or in such  other  name as is  specified
below:

         ------------------------------------
The Warrant Shares shall be delivered to the following DWAC Account Number or by
physical delivery of a certificate to:

         ------------------------------------

         ------------------------------------

         ------------------------------------

     (4) ACCREDITED  INVESTOR.  The  undersigned is an "accredited  investor" as
defined  in  Regulation  D  promulgated  under the  Securities  Act of 1933,  as
amended.

[SIGNATURE OF HOLDER]

Name of Investing Entity: ______________________________________________________

SIGNATURE OF AUTHORIZED SIGNATORY OF INVESTING ENTITY: _________________________

Name of Authorized Signatory: __________________________________________________

Title of Authorized Signatory: _________________________________________________

Date: __________________________________________________________________________

<PAGE>

                                 ASSIGNMENT FORM

                    (To assign the foregoing warrant, execute
                   this form and supply required information.
                 Do not use this form to exercise the warrant.)

     FOR VALUE  RECEIVED,  [____] all of or  [_______]  shares of the  foregoing
Warrant and all rights evidenced thereby are hereby assigned to

_______________________________________________ whose address is

________________________________________________________________.

________________________________________________________________

                                 Dated:  ______________, _______

                  Holder's Signature:   _____________________________

                  Holder's Address:     _____________________________

Signature Guaranteed:  ______________________________________________

NOTE: The signature to this  Assignment Form must correspond with the name as it
appears on the face of the Warrant,  without  alteration or  enlargement  or any
change whatsoever,  and must be guaranteed by a bank or trust company.  Officers
of corporations and those acting in a fiduciary or other representative capacity
should file proper evidence of authority to assign the foregoing Warrant.EX-4.3

NEITHER THIS SECURITY NOR THE SECURITIES INTO WHICH THIS SECURITY IS EXERCISABLE
HAVE  BEEN  REGISTERED  WITH  THE  SECURITIES  AND  EXCHANGE  COMMISSION  OR THE
SECURITIES   COMMISSION  OF  ANY  STATE  IN  RELIANCE  UPON  AN  EXEMPTION  FROM
REGISTRATION  UNDER THE  SECURITIES  ACT OF 1933,  AS AMENDED  (THE  "SECURITIES
ACT"),  AND,  ACCORDINGLY,  MAY NOT BE OFFERED  OR SOLD  EXCEPT  PURSUANT  TO AN
EFFECTIVE  REGISTRATION  STATEMENT  UNDER THE  SECURITIES  ACT OR PURSUANT TO AN
AVAILABLE  EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE  REGISTRATION
REQUIREMENTS  OF THE  SECURITIES  ACT AND IN ACCORDANCE  WITH  APPLICABLE  STATE
SECURITIES  LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO
SUCH  EFFECT,  THE  SUBSTANCE  OF WHICH SHALL BE  REASONABLY  ACCEPTABLE  TO THE
COMPANY.  THIS  SECURITY  AND THE  SECURITIES  ISSUABLE  UPON  EXERCISE  OF THIS
SECURITY MAY BE PLEDGED IN CONNECTION  WITH A BONA FIDE MARGIN  ACCOUNT OR OTHER
LOAN SECURED BY SUCH SECURITIES.

                          COMMON STOCK PURCHASE WARRANT

                To Purchase __________ Shares of Common Stock of

                           ELITE PHARMACEUTICALS, INC.

              THIS COMMON STOCK PURCHASE WARRANT (the "WARRANT") certifies that,
for value received,  _____________ (the "HOLDER"),  is entitled,  upon the terms
and subject to the  limitations on exercise and the conditions  hereinafter  set
forth, at any time on or after the Initial  Exercise Date (as defined in Section
2) and on or prior to the close of business on the five year  anniversary of the
Initial Exercise Date (the "TERMINATION DATE") but not thereafter,  to subscribe
for and purchase from Elite  Pharmaceuticals,  Inc., a Delaware corporation (the
"COMPANY"),  up to ______  shares (the "WARRANT  SHARES") of Common  Stock,  par
value $.01 per share, of the Company (the "COMMON STOCK"). The purchase price of
one share of Common  Stock  under this  Warrant  shall be equal to the  Exercise
Price, as defined in Section 2(b).

       SECTION 1. DEFINITIONS.  Capitalized terms used and not otherwise defined
herein shall have the meanings  set forth in that  certain  Securities  Purchase
Agreement (the "PURCHASE  AGREEMENT"),  dated March 15, 2006,  among the Company
and the purchasers signatory thereto.

       SECTION 2. EXERCISE.

              a)     EXERCISE  OF  WARRANT.  Exercise  of  the  purchase  rights
       represented by this Warrant may be made, in whole or in part, at any time
       or times on or after  the  date of issue of this  Warrant  (the  "INITIAL
       EXERCISE DATE") and on or before the Termination  Date by delivery to the
       Company of a duly executed  facsimile copy of the Notice of Exercise Form
       annexed  hereto (or such other  office or agency of the Company as it may
       designate by notice in writing to the registered Holder at the address of
       such Holder appearing on the books of the Company); and, within 3 Trading
       Days of the date said Notice of

<PAGE>

       Exercise is delivered to the Company,  the Holder shall have  surrendered
       this Warrant to the Company and the Company shall have  received  payment
       of the aggregate  Exercise Price of the shares thereby  purchased by wire
       transfer  or  cashier's  check  drawn on a United  States  bank.  Partial
       exercises  of this  Warrant  resulting  in  purchases of a portion of the
       total number of Warrant Shares available  hereunder shall have the effect
       of  lowering  the  outstanding   number  of  Warrant  Shares  purchasable
       hereunder in an amount equal to the  applicable  number of Warrant Shares
       purchased.  The Holder and the Company shall maintain records showing the
       number of Warrant Shares  purchased and the date of such  purchases.  The
       Company shall deliver any objection to any Notice of Exercise Form within
       1 Business Day of receipt of such notice.  In the event of any dispute or
       discrepancy,   the  records  of  the  Holder  shall  be  controlling  and
       determinative in the absence of manifest error.

              b)     EXERCISE PRICE.  The exercise price per share of the Common
       Stock under this Warrant shall be $3.25,  subject to adjustment hereunder
       (the "EXERCISE PRICE").

              c)     CASHLESS  EXERCISE.  If at any time after one year from the
       date of  issuance  of this  Warrant  there is no  effective  Registration
       Statement registering, or no current prospectus available for, the resale
       of the  Warrant  Shares  by the  Holder,  then this  Warrant  may also be
       exercised  at such time by means of a  "cashless  exercise"  in which the
       Holder  shall be  entitled  to  receive a  certificate  for the number of
       Warrant Shares equal to the quotient  obtained by dividing [(A-B) (X)] by
       (A), where:

              (A) =  the VWAP on the Trading Day immediately  preceding the date
                     of such election;

              (B) =  the Exercise Price of this Warrant, as adjusted; and

              (X) =  the number of Warrant Shares issuable upon exercise of this
                     Warrant  in  accordance  with the terms of this  Warrant by
                     means of a cash exercise rather than a cashless exercise.

              d)     EXERCISE LIMITATIONS.

                            i.     HOLDER'S RESTRICTIONS.  The Company shall not
                     effect any exercise of this Warrant, and a Holder shall not
                     have the right to  exercise  any  portion of this  Warrant,
                     pursuant to Section 2(c) or  otherwise,  to the extent that
                     after giving effect to such issuance  after exercise as set
                     forth on the  applicable  Notice of  Exercise,  such Holder
                     (together  with  such  Holder's  Affiliates,  and any other
                     person  or  entity  acting  as a group  together  with such
                     Holder or any of such Holder's Affiliates), as set forth on
                     the applicable Notice of Exercise,  would  beneficially own
                     in  excess  of  the  Beneficial  Ownership  Limitation  (as
                     defined below). For purposes of the foregoing sentence, the
                     number of shares of Common Stock beneficially owned by such
                     Holder  and its  Affiliates  shall  include  the  number of
                     shares of  Common  Stock  issuable  upon  exercise  of this
                     Warrant with respect to which such  determination  is being
                     made,  but  shall  exclude  the  number of shares of

                                       2
<PAGE>

                     Common  Stock which would be issuable  upon (A) exercise of
                     the  remaining,   nonexercised   portion  of  this  Warrant
                     beneficially  owned by such Holder or any of its Affiliates
                     and  (B)  exercise  or  conversion  of the  unexercised  or
                     nonconverted portion of any other securities of the Company
                     (including,  without limitation,  any other Preferred Stock
                     or  Warrants)  subject to a  limitation  on  conversion  or
                     exercise  analogous  to  the  limitation  contained  herein
                     beneficially owned by such Holder or any of its affiliates.
                     Except as set forth in the preceding sentence, for purposes
                     of this  Section  2(d)(i),  beneficial  ownership  shall be
                     calculated in accordance with Section 13(d) of the Exchange
                     Act and the rules and regulations  promulgated  thereunder,
                     it being  acknowledged  by a Holder that the Company is not
                     representing  to such  Holder that such  calculation  is in
                     compliance  with Section 13(d) of the Exchange Act and such
                     Holder is solely  responsible for any schedules required to
                     be filed in  accordance  therewith.  To the extent that the
                     limitation  contained  in this Section  2(d)  applies,  the
                     determination  of whether this Warrant is  exercisable  (in
                     relation to other  securities owned by such Holder together
                     with any Affiliates) and of which a portion of this Warrant
                     is exercisable shall be in the sole discretion of a Holder,
                     and the  submission of a Notice of Exercise shall be deemed
                     to be each Holder's  determination  of whether this Warrant
                     is exercisable  (in relation to other  securities  owned by
                     such  Holder  together  with any  Affiliates)  and of which
                     portion  of this  Warrant  is  exercisable,  in  each  case
                     subject to such aggregate  percentage  limitation,  and the
                     Company  shall have no  obligation to verify or confirm the
                     accuracy   of   such   determination.    In   addition,   a
                     determination as to any group status as contemplated  above
                     shall be determined in accordance with Section 13(d) of the
                     Exchange  Act and the  rules  and  regulations  promulgated
                     thereunder.   For  purposes  of  this  Section   2(d),   in
                     determining  the  number  of  outstanding  shares of Common
                     Stock,  a Holder  may  rely on the  number  of  outstanding
                     shares of Common Stock as  reflected  in (x) the  Company's
                     most recent Form 10-Q or Form 10-K, as the case may be, (y)
                     a more recent public announcement by the Company or (z) any
                     other notice by the Company or the Company's Transfer Agent
                     setting   forth  the  number  of  shares  of  Common  Stock
                     outstanding.  Upon the written or oral request of a Holder,
                     the Company  shall within two Trading  Days confirm  orally
                     and in  writing  to such  Holder  the  number  of shares of
                     Common Stock then  outstanding.  In any case, the number of
                     outstanding  shares of  Common  Stock  shall be  determined
                     after  giving  effect  to the  conversion  or  exercise  of
                     securities of the Company,  including this Warrant, by such
                     Holder or its  Affiliates  since the date as of which  such
                     number of outstanding  shares of Common Stock was reported.
                     The "Beneficial Ownership Limitation" shall be 4.99% of the
                     number   of  shares  of  the   Common   Stock   outstanding
                     immediately  after giving  effect to the issuance of shares
                     of Common Stock issuable upon exercise of this Warrant. The
                     Beneficial Ownership Limitation  provisions of this Section
                     2(d)(i) may be waived by such  Holder,  at the  election of
                     such  Holder,  upon not less than

                                       3
<PAGE>

                     61  days'  prior  notice  to  the  Company  to  change  the
                     Beneficial  Ownership  Limitation to 9.99% of the number of
                     shares of the Common Stock  outstanding  immediately  after
                     giving  effect to the  issuance  of shares of Common  Stock
                     upon exercise of this Warrant,  and the  provisions of this
                     Section 2(d) shall continue to apply. Upon such a change by
                     a Holder of the Beneficial  Ownership  Limitation from such
                     4.99% limitation to such 9.99%  limitation,  the Beneficial
                     Ownership  Limitation  may not be  further  waived  by such
                     Holder. The provisions of this paragraph shall be construed
                     and  implemented  in a  manner  otherwise  than  in  strict
                     conformity  with  the  terms  of this  Section  2(d)(i)  to
                     correct this paragraph (or any portion hereof) which may be
                     defective  or  inconsistent  with the  intended  Beneficial
                     Ownership Limitation herein contained or to make changes or
                     supplements  necessary or desirable to properly give effect
                     to  such  limitation.  The  limitations  contained  in this
                     paragraph  shall  apply  to  a  successor  holder  of  this
                     Warrant.

                            ii.    TRADING MARKET  RESTRICTIONS.  If the Company
                     has not obtained  Shareholder  Approval (as defined below),
                     then  the  Company  may not  issue  upon  exercise  of this
                     Warrant a number of shares  of Common  Stock,  which,  when
                     aggregated  with any shares of Common Stock issued (A) upon
                     conversion  of or as payment of dividends on the  Preferred
                     Stock issued pursuant to the Purchase  Agreement,  (B) upon
                     prior exercise of this or any other Warrant issued pursuant
                     to the Purchase  Agreement and (C) pursuant to any warrants
                     issued  to  any  registered   broker-dealer  as  a  fee  in
                     connection  with the  Securities  pursuant to the  Purchase
                     Agreement,  would exceed 19.999% of the number of shares of
                     Common  Stock  outstanding  on the Trading Day  immediately
                     preceding  the  Closing  Date (such  number of shares,  the
                     "ISSUABLE  MAXIMUM").  If on any attempted exercise of this
                     Warrant,  the  issuance of Warrant  Shares would exceed the
                     Issuable  Maximum and the Company shall not have previously
                     obtained the vote of  shareholders  to approve the issuance
                     of shares of Common Stock in excess of the Issuable Maximum
                     pursuant to the terms hereof (the "SHAREHOLDER  APPROVAL"),
                     then the  Company  shall issue to the Holder  requesting  a
                     Warrant  exercise  such number of Warrant  Shares as may be
                     issued below the Issuable  Maximum and, with respect to the
                     remainder of the aggregate  number of Warrant Shares,  this
                     Warrant   shall  not  be   exercisable   until  and  unless
                     Shareholder Approval has been obtained.

              e)     MECHANICS OF EXERCISE.

                            i.     AUTHORIZATION OF WARRANT SHARES.  The Company
                     covenants  that all Warrant Shares which may be issued upon
                     the exercise of the  purchase  rights  represented  by this
                     Warrant  will,   upon  exercise  of  the  purchase   rights
                     represented by this Warrant,  be duly  authorized,  validly
                     issued,  fully  paid and  nonassessable  and free  from all
                     taxes,  liens and charges created by the Company in respect
                     of the issue  thereof  (other  than

                                       4
<PAGE>

                     taxes    in    respect    of   any    transfer    occurring
                     contemporaneously with such issue).

                            ii.    DELIVERY  OF   CERTIFICATES   UPON  EXERCISE.
                     Certificates  for  shares  purchased   hereunder  shall  be
                     transmitted  by the  transfer  agent of the  Company to the
                     Holder by  crediting  the  account  of the  Holder's  prime
                     broker  with  the  Depository  Trust  Company  through  its
                     Deposit Withdrawal Agent Commission  ("DWAC") system if the
                     Company is a participant  in such system,  and otherwise by
                     physical delivery to the address specified by the Holder in
                     the  Notice  of  Exercise  within 3  Trading  Days from the
                     delivery  to the  Company of the Notice of  Exercise  Form,
                     surrender  of this  Warrant  and  payment of the  aggregate
                     Exercise Price as set forth above  ("WARRANT SHARE DELIVERY
                     DATE"). This Warrant shall be deemed to have been exercised
                     on the date the Exercise  Price is received by the Company.
                     The Warrant Shares shall be deemed to have been issued, and
                     Holder  or any  other  person  so  designated  to be  named
                     therein  shall be deemed to have  become a holder of record
                     of such shares for all purposes, as of the date the Warrant
                     has  been  exercised  by  payment  to  the  Company  of the
                     Exercise Price (or by cashless exercise,  if permitted) and
                     all  taxes  required  to be  paid  by the  Holder,  if any,
                     pursuant to Section 2(e)(vii) prior to the issuance of such
                     shares, have been paid.

                            iii.   DELIVERY OF NEW WARRANTS  UPON  EXERCISE.  If
                     this Warrant shall have been exercised in part, the Company
                     shall, upon surrender of this Warrant  certificate,  at the
                     time  of  delivery  of  the   certificate  or  certificates
                     representing  Warrant  Shares,  deliver  to  Holder  a  new
                     Warrant  evidencing  the rights of Holder to  purchase  the
                     unpurchased  Warrant  Shares  called  for by this  Warrant,
                     which new Warrant shall in all other  respects be identical
                     with this Warrant.

                            iv.    RESCISSION  RIGHTS.  If the Company  fails to
                     cause  its  transfer  agent  to  transmit  to the  Holder a
                     certificate or certificates representing the Warrant Shares
                     pursuant to this  Section  2(e)(iv)  by the  Warrant  Share
                     Delivery  Date,  then the  Holder  will  have the  right to
                     rescind such exercise.

                            v.     COMPENSATION  FOR BUY-IN ON FAILURE TO TIMELY
                     DELIVER  CERTIFICATES  UPON  EXERCISE.  In  addition to any
                     other rights available to the Holder,  if the Company fails
                     to cause its  transfer  agent to  transmit  to the Holder a
                     certificate or certificates representing the Warrant Shares
                     pursuant  to an  exercise  on or before the  Warrant  Share
                     Delivery  Date,  and if  after  such  date  the  Holder  is
                     required  by its  broker  to  purchase  (in an open  market
                     transaction or otherwise) shares of Common Stock to deliver
                     in  satisfaction  of a sale by the  Holder  of the  Warrant
                     Shares  which the Holder  anticipated  receiving  upon such
                     exercise (a  "BUY-IN"),  then the Company  shall (1) pay in
                     cash to the  Holder  the  amount by which (x) the  Holder's
                     total purchase price (including brokerage  commissions,  if
                     any) for the shares of Common  Stock so  purchased  exceeds
                     (y) the amount

                                       5
<PAGE>

                     obtained by  multiplying  (A) the number of Warrant  Shares
                     that the Company  was  required to deliver to the Holder in
                     connection  with the  exercise at issue times (B) the price
                     at  which  the  sell  order  giving  rise to such  purchase
                     obligation  was  executed,  and  (2) at the  option  of the
                     Holder,  either  reinstate  the  portion of the Warrant and
                     equivalent number of Warrant Shares for which such exercise
                     was not  honored  or  deliver  to the  Holder the number of
                     shares of Common  Stock that would have been issued had the
                     Company  timely  complied  with its  exercise  and delivery
                     obligations hereunder. For example, if the Holder purchases
                     Common  Stock having a total  purchase  price of $11,000 to
                     cover a Buy-In  with  respect to an  attempted  exercise of
                     shares of Common Stock with an aggregate  sale price giving
                     rise to such purchase  obligation of $10,000,  under clause
                     (1) of the immediately preceding sentence the Company shall
                     be  required  to pay the Holder  $1,000.  The Holder  shall
                     provide the Company  written notice  indicating the amounts
                     payable to the Holder in  respect of the Buy-In  and,  upon
                     request  of the  Company,  evidence  of the  amount of such
                     loss. Nothing herein shall limit a Holder's right to pursue
                     any other remedies available to it hereunder,  at law or in
                     equity including,  without limitation, a decree of specific
                     performance  and/or  injunctive  relief with respect to the
                     Company's   failure   to   timely   deliver    certificates
                     representing  shares of Common  Stock upon  exercise of the
                     Warrant as required pursuant to the terms hereof.

                            vi.    NO FRACTIONAL  SHARES OR SCRIP. No fractional
                     shares or scrip  representing  fractional  shares  shall be
                     issued  upon  the  exercise  of  this  Warrant.  As to  any
                     fraction  of  a  share  which  Holder  would  otherwise  be
                     entitled to purchase upon such exercise,  the Company shall
                     at its election, either pay a cash adjustment in respect of
                     such final  fraction  in an amount  equal to such  fraction
                     multiplied  by the  Exercise  Price or round up to the next
                     whole share.

                            vii.   CHARGES,  TAXES  AND  EXPENSES.  Issuance  of
                     certificates  for  Warrant  Shares  shall  be made  without
                     charge to the Holder for any issue or transfer tax or other
                     incidental  expense  in  respect  of the  issuance  of such
                     certificate,  all of which taxes and expenses shall be paid
                     by the Company,  and such  certificates  shall be issued in
                     the name of the  Holder  or in such name or names as may be
                     directed  by the  Holder;  provided,  however,  that in the
                     event certificates for Warrant Shares are to be issued in a
                     name other than the name of the Holder,  this  Warrant when
                     surrendered  for  exercise  shall  be  accompanied  by  the
                     Assignment  Form  attached  hereto  duly  executed  by  the
                     Holder;  and  the  Company  may  require,  as  a  condition
                     thereto,  the payment of a sum  sufficient  to reimburse it
                     for any transfer tax incidental thereto.

                            viii.  CLOSING OF BOOKS.  The Company will not close
                     its  stockholder  books  or  records  in any  manner  which
                     prevents the timely  exercise of this Warrant,  pursuant to
                     the terms hereof.

                                       6
<PAGE>

       all Notices of Exercise  delivered  by 6:30 p.m.  (New York City time) on
       the Call Date, (ii) the  Registration  Statement shall be effective as to
       all Warrant Shares and the prospectus thereunder available for use by the
       Holder  for the  resale of all such  Warrant  Shares and (iii) the Common
       Stock shall be listed or quoted for trading on the  Trading  Market,  and
       (iv) there is a sufficient  number of  authorized  shares of Common Stock
       for issuance of all Securities under the Transaction  Documents,  and (v)
       the issuance of the shares  shall not cause a breach of any  provision of
       2(d) herein.  The Company's  right to Call the Warrant shall be exercised
       ratably  among the Holders  based on each  Holder's  initial  purchase of
       Warrants.

       SECTION 3. CERTAIN ADJUSTMENTS.

              a)     STOCK  DIVIDENDS  AND SPLITS.  If the Company,  at any time
       while this Warrant is outstanding: (A) pays a stock dividend or otherwise
       make a distribution or distributions on shares of its Common Stock or any
       other equity or equity equivalent  securities payable in shares of Common
       Stock  (which,  for  avoidance of doubt,  shall not include any shares of
       Common Stock issued by the Company upon  exercise of this  Warrant),  (B)
       subdivides  outstanding  shares of Common  Stock into a larger  number of
       shares,   (C)  combines   (including  by  way  of  reverse  stock  split)
       outstanding  shares of Common Stock into a smaller  number of shares,  or
       (D) issues by  reclassification  of shares of the Common Stock any shares
       of capital  stock of the Company,  then in each case the  Exercise  Price
       shall be  multiplied  by a fraction of which the  numerator  shall be the
       number of shares of Common  Stock  (excluding  treasury  shares,  if any)
       outstanding  immediately  before such event and of which the  denominator
       shall be the  number of shares of Common  Stock  outstanding  immediately
       after such event and the number of shares  issuable upon exercise of this
       Warrant shall be proportionately  adjusted.  Any adjustment made pursuant
       to this Section 3(a) shall become effective  immediately after the record
       date for the  determination  of  stockholders  entitled  to receive  such
       dividend or distribution and shall become effective immediately after the
       effective   date  in  the   case  of  a   subdivision,   combination   or
       re-classification.

              b)     SUBSEQUENT  EQUITY SALES.  If the Company or any Subsidiary
       thereof,  as applicable,  at any time while this Warrant is  outstanding,
       shall sell or grant any option to  purchase or sell or grant any right to
       reprice its securities, or otherwise dispose of or issue (or announce any
       offer,  sale,  grant or any option to purchase or other  disposition) any
       Common Stock or Common Stock Equivalents  entitling any Person to acquire
       shares of Common  Stock,  at an  effective  price per share less than the
       then  applicable  Conversion  Price  (as  such  term  is  defined  in the
       Certificate  of  Designations)  of the  Preferred  Stock (such  issuances
       collectively,  a "DILUTIVE  ISSUANCE") (if the holder of the Common Stock
       or Common  Stock  Equivalents  so issued  shall at any time,  whether  by
       operation  of purchase  price  adjustments,  reset  provisions,  floating
       conversion, exercise or exchange prices or otherwise, or due to warrants,
       options or rights  per share  which are  issued in  connection  with such
       issuance,  be entitled to receive  shares of Common Stock at an effective
       price per share which is less than the then applicable  Conversion Price,
       such  issuance  shall be deemed to have  occurred  for less than the then
       applicable Conversion Price on such date of the Dilutive Issuance),  then
       the Exercise Price shall be reduced and only reduced by  multiplying  the
       Exercise Price by a fraction, the numerator

                                       7
<PAGE>

       of which is the number of shares of Common Stock  issued and  outstanding
       immediately  prior to the Dilutive  Issuance plus the number of shares of
       Common Stock which the offering  price for such Dilutive  Issuance  would
       purchase at the then applicable  Conversion Price, and the denominator of
       which shall be the sum of the number of shares of Common Stock issued and
       outstanding immediately prior to the Dilutive Issuance plus the number of
       shares of  Common  Stock so issued or  issuable  in  connection  with the
       Dilutive  Issuance and the number of Warrant  Shares  issuable  hereunder
       shall  be  increased  such  that the  aggregate  Exercise  Price  payable
       hereunder,  after taking into account the decrease in the Exercise Price,
       shall be equal to the aggregate  Exercise Price prior to such adjustment.
       Such adjustment  shall be made whenever such Common Stock or Common Stock
       Equivalents  are issued.  Notwithstanding  the foregoing,  no adjustments
       shall be made,  paid or issued  under this  Section 3(b) in respect of an
       Exempt Issuance. The Company shall notify the Holder in writing, no later
       than the Trading Day following the issuance of any Common Stock or Common
       Stock  Equivalents  subject  to  this  section,  indicating  therein  the
       applicable  issuance  price, or applicable  reset price,  exchange price,
       conversion  price and other  pricing  terms  (such  notice the  "DILUTIVE
       ISSUANCE  NOTICE").  For  purposes of  clarification,  whether or not the
       Company  provides a Dilutive  Issuance  Notice  pursuant to this  Section
       3(b),  upon the  occurrence of any Dilutive  Issuance,  after the date of
       such  Dilutive  Issuance  the Holder is  entitled  to receive a number of
       Warrant  Shares  based upon the adjusted  Exercise  Price  regardless  of
       whether the Holder  accurately  refers to the adjusted  Exercise Price in
       the Notice of Exercise.

              c)     SUBSEQUENT  RIGHTS OFFERINGS.  If the Company,  at any time
       while the Warrant is outstanding, shall issue rights, options or warrants
       to all  holders of Common  Stock (and not to Holders)  entitling  them to
       subscribe  for or  purchase  shares of Common  Stock at a price per share
       less than the VWAP at the record date mentioned below,  then the Exercise
       Price shall be multiplied by a fraction,  of which the denominator  shall
       be the number of shares of the Common  Stock  outstanding  on the date of
       issuance of such rights or warrants plus the number of additional  shares
       of Common Stock offered for  subscription  or purchase,  and of which the
       numerator  shall be the number of shares of the Common Stock  outstanding
       on the date of issuance  of such  rights or  warrants  plus the number of
       shares which the aggregate  offering  price of the total number of shares
       so offered  (assuming receipt by the Company in full of all consideration
       payable upon exercise of such rights, options or warrants) would purchase
       at such VWAP.  Such  adjustment  shall be made  whenever  such  rights or
       warrants are issued,  and shall become  effective  immediately  after the
       record date for the  determination  of  stockholders  entitled to receive
       such rights, options or warrants. If any such rights, options or warrants
       expire without having been exercised, the Exercise Price as adjusted upon
       the issuance of such rights,  options or warrants  shall be readjusted to
       the Exercise Price which would have been in effect had an adjustment been
       made on the basis that only  additional  shares of Common Stock so issued
       were the additional  shares of Common Stock,  if any,  actually issued or
       sold on the  exercise  of such  rights,  options  or  warrants  and  such
       additional  shares of Common  Stock,  if any, were issued or sold for the
       consideration  actually  received by the Corporation  upon such exercise,
       plus the consideration,  if any, actually received by the Corporation for
       the  granting of all such  rights,  options or  warrants,  whether or not
       exercised,  provided  that  such  readjustment  shall  not apply to prior
       exercises of the Warrant.

                                       8
<PAGE>

              d)     PRO RATA  DISTRIBUTIONS.  If the Company, at any time prior
       to the Termination  Date, shall distribute to all holders of Common Stock
       (and not to Holders of the  Warrants)  evidences of its  indebtedness  or
       assets  (including  cash and cash  dividends)  or rights or  warrants  to
       subscribe for or purchase any security other than the Common Stock (which
       shall be subject to Section  3(b)),  then in each such case the  Exercise
       Price shall be  adjusted  by  multiplying  the  Exercise  Price in effect
       immediately   prior  to  the  record  date  fixed  for  determination  of
       stockholders entitled to receive such distribution by a fraction of which
       the  denominator  shall  be the VWAP  determined  as of the  record  date
       mentioned  above,  and of which the numerator  shall be such VWAP on such
       record date less the then per share fair market value at such record date
       of the portion of such assets or evidence of  indebtedness so distributed
       applicable to one outstanding  share of the Common Stock as determined by
       the Board of  Directors  in good faith.  In either  case the  adjustments
       shall be described  in a statement  provided to the Holder of the portion
       of  assets  or  evidences  of   indebtedness   so   distributed  or  such
       subscription  rights  applicable  to one  share  of  Common  Stock.  Such
       adjustment shall be made whenever any such distribution is made and shall
       become effective immediately after the record date mentioned above.

              e)     FUNDAMENTAL TRANSACTION. If, at any time while this Warrant
       is outstanding,  (A) the Company effects any merger or  consolidation  of
       the Company with or into another Person, (B) the Company effects any sale
       of all or  substantially  all of its assets in one or a series of related
       transactions,  (C) any tender  offer or  exchange  offer  (whether by the
       Company or another  Person) is  completed  pursuant  to which  holders of
       Common Stock are  permitted to tender or exchange  their shares for other
       securities,   cash  or   property,   or  (D)  the  Company   effects  any
       reclassification  of the Common Stock or any  compulsory  share  exchange
       pursuant  to which the  Common  Stock is  effectively  converted  into or
       exchanged  for other  securities,  cash or property  (in any such case, a
       "FUNDAMENTAL TRANSACTION"), then,

                     i.     subject to clause  (ii) below,  upon any  subsequent
                            exercise of this Warrant,  the Holder shall have the
                            right to receive,  for each Warrant Share that would
                            have been issuable  upon such  exercise  immediately
                            prior  to  the   occurrence   of  such   Fundamental
                            Transaction,  at the option of the Holder,  (a) upon
                            exercise of this Warrant and payment of the Exercise
                            Price,  the number of shares of Common  Stock of the
                            successor  or  acquiring   corporation   or  of  the
                            Company, if it is the surviving corporation, and any
                            additional     consideration     (the     "ALTERNATE
                            CONSIDERATION")  receivable  upon or as a result  of
                            such   reorganization,   reclassification,   merger,
                            consolidation  or  disposition of assets by a Holder
                            of the  number of  shares of Common  Stock for which
                            this  Warrant is  exercisable  immediately  prior to
                            such event or (b) if the  Company is  acquired in an
                            all cash  transaction,  cash  equal to the  value of
                            this Warrant as determined  in  accordance  with the
                            Black-Scholes option pricing formula; or

                     ii.    if  the   Company  is   acquired   in  an  all  cash
                            transaction,  in the  option of the  Company  or its
                            acquiror,  the  Holder may be paid cash equal to

                                       9
<PAGE>

                            the  value  of  this   Warrant  as   determined   in
                            accordance  with the  Black-Scholes  option  pricing
                            formula and upon  payment of such cash,  the Warrant
                            shall terminate.

       For purposes of any such exercise by the Holder, the determination of the
       Exercise Price shall be appropriately adjusted to apply to such Alternate
       Consideration based on the amount of Alternate  Consideration issuable in
       respect of one share of Common Stock in such Fundamental Transaction, and
       the Company  shall  apportion  the  Exercise  Price  among the  Alternate
       Consideration in a reasonable manner reflecting the relative value of any
       different components of the Alternate Consideration. If holders of Common
       Stock are given any choice as to the  securities,  cash or property to be
       received in a Fundamental Transaction, then the Holder shall be given the
       same  choice  as to the  Alternate  Consideration  it  receives  upon any
       exercise of this Warrant following such Fundamental  Transaction.  To the
       extent necessary to effectuate the foregoing provisions, any successor to
       the Company or surviving  entity in such  Fundamental  Transaction  shall
       issue  to  the  Holder  a  new  warrant  consistent  with  the  foregoing
       provisions  and  evidencing  the Holder's  right to exercise such warrant
       into  Alternate  Consideration.  The terms of any  agreement  pursuant to
       which a Fundamental Transaction is effected shall include terms requiring
       any such  successor or surviving  entity to comply with the provisions of
       this Section 3(d) and insuring that this Warrant (or any such replacement
       security)  will be similarly  adjusted  upon any  subsequent  transaction
       analogous to a Fundamental Transaction.

              f)     CALCULATIONS.  All calculations  under this Section 3 shall
       be made to the  nearest  cent or the nearest  1/100th of a share,  as the
       case may be.  For  purposes  of this  Section  3, the number of shares of
       Common Stock deemed to be issued and outstanding as of a given date shall
       be the sum of the number of shares of Common  Stock  (excluding  treasury
       shares, if any) issued and outstanding.

              g)     VOLUNTARY  ADJUSTMENT  BY  COMPANY.  The Company may at any
       time during the term of this  Warrant  reduce the then  current  Exercise
       Price to any amount and for any period of time deemed  appropriate by the
       Board of Directors of the Company.

              h)     NOTICE TO HOLDERS.

                            i.     ADJUSTMENT  TO EXERCISE  PRICE.  Whenever the
                     Exercise  Price is adjusted  pursuant to any  provision  of
                     this  Section 3, the Company  shall  promptly  mail to each
                     Holder a notice setting forth the Exercise Price after such
                     adjustment and setting forth a brief statement of the facts
                     requiring such adjustment. If the Company issues a variable
                     rate  security,  despite  the  prohibition  thereon  in the
                     Purchase  Agreement,  the  Company  shall be deemed to have
                     issued  Common  Stock or Common  Stock  Equivalents  at the
                     lowest possible  conversion or exercise price at which such
                     securities  may be  converted or exercised in the case of a
                     Variable  Rate  Transaction  (as  defined  in the  Purchase
                     Agreement).

                                       10
<PAGE>

                            ii.    NOTICE TO ALLOW  EXERCISE  BY HOLDER.  If (A)
                     the  Company   shall  declare  a  dividend  (or  any  other
                     distribution in whatever form) on the Common Stock; (B) the
                     Company shall declare a special  nonrecurring cash dividend
                     on or a  redemption  of the Common  Stock;  (C) the Company
                     shall  authorize  the granting to all holders of the Common
                     Stock rights or warrants to  subscribe  for or purchase any
                     shares of capital stock of any class or of any rights;  (D)
                     the approval of any  stockholders  of the Company  shall be
                     required in  connection  with any  reclassification  of the
                     Common  Stock,  any  consolidation  or  merger to which the
                     Company  is a  party,  any  sale  or  transfer  of  all  or
                     substantially  all of the  assets  of the  Company,  of any
                     compulsory  share  exchange  whereby  the  Common  Stock is
                     converted into other securities,  cash or property; (E) the
                     Company  shall   authorize  the  voluntary  or  involuntary
                     dissolution,  liquidation  or winding up of the  affairs of
                     the Company; then, in each case, the Company shall cause to
                     be mailed to the  Holder  at its last  address  as it shall
                     appear upon the Warrant  Register of the Company,  at least
                     20  calendar  days  prior  to  the  applicable   record  or
                     effective date hereinafter  specified, a notice stating (x)
                     the date on which a record is to be taken  for the  purpose
                     of  such  dividend,  distribution,  redemption,  rights  or
                     warrants, or if a record is not to be taken, the date as of
                     which  the  holders  of the  Common  Stock of  record to be
                     entitled  to  such  dividend,  distributions,   redemption,
                     rights or warrants are to be  determined or (y) the date on
                     which such reclassification,  consolidation,  merger, sale,
                     transfer or share exchange is expected to become  effective
                     or  close,  and the date as of which  it is  expected  that
                     holders of the Common  Stock of record shall be entitled to
                     exchange  their shares of the Common Stock for  securities,
                     cash   or   other    property    deliverable    upon   such
                     reclassification,  consolidation, merger, sale, transfer or
                     share  exchange;  provided  that the  failure  to mail such
                     notice or any  defect  therein  or in the  mailing  thereof
                     shall not  affect  the  validity  of the  corporate  action
                     required  to be  specified  in such  notice.  The Holder is
                     entitled to exercise this Warrant  during the 20-day period
                     commencing on the date of such notice to the effective date
                     of the event triggering such notice.

       SECTION 4.    TRANSFER OF WARRANT.

              a)     TRANSFERABILITY.  The Warrant  and the other  rights of the
       Holder  pursuant to this Warrant  certificate are not severable from this
       Warrant  certificate,  and shall not be assignable or transferable except
       in connection  with a transfer or assignment of this Warrant  certificate
       in accordance with the terms hereof. Any instrument  purporting to make a
       transfer or  assignment  in  violation of this Section 4(a) shall be void
       and of no effect.  Subject to compliance  with any applicable  securities
       laws and the  conditions  set forth in  Section  4(d)  hereof  and to the
       provisions of Section 4.1 of the Purchase Agreement, this Warrant and all
       rights hereunder (including, without limitation, any registration rights)
       are  transferable,  in whole or in part,  upon  surrender of this Warrant
       certificate  at the  principal  office of the  Company or its  designated
       agent,  together with a written assignment of this Warrant  substantially
       in the form  attached  hereto duly

                                       11
<PAGE>

       executed by the Holder or its agent or attorney and funds  sufficient  to
       pay any transfer  taxes  payable upon the making of such  transfer.  Upon
       compliance  with the foregoing and such surrender and, if required,  such
       payment,  the Company shall execute and deliver a new Warrant or Warrants
       in the name of the  assignee  or  assignees  and in the  denomination  or
       denominations specified in such instrument of assignment, and shall issue
       to the assignor a new Warrant  evidencing the portion of this Warrant not
       so assigned,  and this Warrant shall promptly be cancelled. A Warrant, if
       properly  assigned,  may be exercised by a new holder for the purchase of
       Warrant Shares without having a new Warrant issued.

              b)     NEW WARRANTS.  This Warrant may be divided or combined with
       other Warrants upon  presentation  hereof at the aforesaid  office of the
       Company,  together  with  a  written  notice  specifying  the  names  and
       denominations  in which  new  Warrants  are to be  issued,  signed by the
       Holder or its agent or attorney. Subject to compliance with Section 4(a),
       as to any transfer which may be involved in such division or combination,
       the  Company  shall  execute  and  deliver a new  Warrant or  Warrants in
       exchange  for the  Warrant  or  Warrants  to be divided  or  combined  in
       accordance with such notice.

              c)     WARRANT REGISTER.  The Company shall register this Warrant,
       upon  records to be  maintained  by the  Company  for that  purpose  (the
       "WARRANT REGISTER"), in the name of the record Holder hereof from time to
       time.  The  Company  may deem and  treat  the  registered  Holder of this
       Warrant as the  absolute  owner  hereof for the  purpose of any  exercise
       hereof or any  distribution  to the Holder,  and for all other  purposes,
       absent actual notice to the contrary.

              d)     TRANSFER RESTRICTIONS.  If, at the time of the surrender of
       this  Warrant  in  connection  with any  transfer  of this  Warrant,  the
       transfer of this Warrant shall not be registered pursuant to an effective
       registration  statement  under the  Securities  Act and under  applicable
       state  securities  or blue  sky  laws,  the  Company  may  require,  as a
       condition of allowing  such transfer (i) that the Holder or transferee of
       this  Warrant,  as the case may be,  furnish  to the  Company  a  written
       opinion of counsel (which  opinion shall be in form,  substance and scope
       customary  for  opinions of counsel in  comparable  transactions)  to the
       effect that such  transfer  may be made  without  registration  under the
       Securities Act and under  applicable  state  securities or blue sky laws,
       (ii) that the holder or transferee  execute and deliver to the Company an
       investment  letter in form and  substance  acceptable  to the Company and
       (iii) that the transferee be an "accredited  investor" as defined in Rule
       501(a)(1),  (a)(2),  (a)(3),  (a)(7),  or  (a)(8)  promulgated  under the
       Securities  Act or a "qualified  institutional  buyer" as defined in Rule
       144A(a) under the Securities Act.

       SECTION 5.    MISCELLANEOUS.

              a)     NO RIGHTS AS SHAREHOLDER UNTIL EXERCISE.  This Warrant does
       not  entitle  the  Holder  to any  voting  rights  or other  rights  as a
       shareholder  of the Company prior to the exercise  hereof as set forth in
       Section 2(e)(ii).

                                       12
<PAGE>

              b)     LOSS,  THEFT,  DESTRUCTION  OR MUTILATION  OF WARRANT.  The
       Company covenants that upon receipt by the Company of evidence reasonably
       satisfactory to it of the loss, theft,  destruction or mutilation of this
       Warrant or any stock certificate  relating to the Warrant Shares,  and in
       case of loss, theft or destruction,  of indemnity or security  reasonably
       satisfactory to it (which, in the case of the Warrant,  shall not include
       the posting of any bond),  and upon  surrender and  cancellation  of such
       Warrant or stock  certificate,  if  mutilated,  the Company will make and
       deliver a new Warrant or stock  certificate of like tenor and dated as of
       such cancellation, in lieu of such Warrant or stock certificate.

              c)     SATURDAYS, SUNDAYS, HOLIDAYS, ETC. If the last or appointed
       day for the taking of any action or the  expiration of any right required
       or granted  herein shall not be a Business  Day,  then such action may be
       taken or such right may be exercised on the next succeeding Business Day.

              d)     AUTHORIZED SHARES.

                     The Company covenants that during the period the Warrant is
              outstanding,  it will  reserve  from its  authorized  and unissued
              Common  Stock a  sufficient  number of shares to  provide  for the
              issuance of the Warrant  Shares upon the  exercise of any purchase
              rights under this Warrant.  The Company further covenants that its
              issuance of this Warrant shall  constitute  full  authority to its
              officers  who  are  charged  with  the  duty  of  executing  stock
              certificates to execute and issue the necessary  certificates  for
              the Warrant Shares upon the exercise of the purchase  rights under
              this Warrant.  The Company will take all such reasonable action as
              may be necessary to assure that such Warrant  Shares may be issued
              as provided  herein  without  violation of any  applicable  law or
              regulation,  or of any  requirements  of the  Trading  Market upon
              which the Common Stock may be listed.

                     Except and to the extent as waived or  consented  to by the
              Holder,  the Company shall not by any action,  including,  without
              limitation,  amending its certificate of  incorporation or through
              any  reorganization,  transfer of assets,  consolidation,  merger,
              dissolution,  issue or sale of securities  or any other  voluntary
              action,  avoid or seek to avoid the  observance or  performance of
              any of the  terms of this  Warrant,  but will at all times in good
              faith  assist  in the  carrying  out of all such  terms and in the
              taking of all such actions as may be necessary or  appropriate  to
              protect the rights of Holder as set forth in this Warrant  against
              impairment.  Without limiting the generality of the foregoing, the
              Company will (a) not increase the par value of any Warrant  Shares
              above the amount payable  therefor upon such exercise  immediately
              prior to such  increase in par value,  (b) take all such action as
              may be  necessary  or  appropriate  in order that the  Company may
              validly and legally  issue  fully paid and  nonassessable  Warrant
              Shares upon the exercise of this Warrant, and (c) use commercially
              reasonable efforts to obtain all such  authorizations,  exemptions
              or consents from any public  regulatory  body having  jurisdiction
              thereof as may be  necessary  to enable the Company to perform its
              obligations under this Warrant.

                                       13
<PAGE>

                     Before   taking  any  action   which  would  result  in  an
              adjustment in the number of Warrant  Shares for which this Warrant
              is exercisable or in the Exercise Price,  the Company shall obtain
              all  such   authorizations  or  exemptions  thereof,  or  consents
              thereto,  as may be necessary from any public  regulatory  body or
              bodies having jurisdiction thereof.

              e)     JURISDICTION.  All questions  concerning the  construction,
       validity,  enforcement  and  interpretation  of  this  Warrant  shall  be
       determined in accordance with the provisions of the Purchase Agreement.

              f)     RESTRICTIONS.  The  Holder  acknowledges  that the  Warrant
       Shares  acquired  upon the exercise of this Warrant,  if not  registered,
       will  have   restrictions  upon  resale  imposed  by  state  and  federal
       securities laws.

              g)     NONWAIVER AND  EXPENSES.  No course of dealing or any delay
       or failure to exercise  any right  hereunder  on the part of Holder shall
       operate as a waiver of such right or otherwise prejudice Holder's rights,
       powers or remedies,  notwithstanding  the fact that all rights  hereunder
       terminate on the Termination Date. If the Company willfully and knowingly
       fails to comply with any provision of this Warrant,  which results in any
       material  damages to the  Holder,  the  Company  shall pay to Holder such
       amounts as shall be sufficient to cover any costs and expenses including,
       but not  limited  to,  reasonable  attorneys'  fees,  including  those of
       appellate  proceedings,  incurred by Holder in collecting any amounts due
       pursuant  hereto or in otherwise  enforcing any of its rights,  powers or
       remedies hereunder.

              h)     NOTICES. Any notice,  request or other document required or
       permitted to be given or delivered to the Holder by the Company  shall be
       delivered  in  accordance  with the  notice  provisions  of the  Purchase
       Agreement.

              i)     LIMITATION  OF  LIABILITY.  No  provision  hereof,  in  the
       absence of any  affirmative  action by Holder to exercise this Warrant to
       purchase  Warrant  Shares,  and no  enumeration  herein of the  rights or
       privileges of Holder,  shall give rise to any liability of Holder for the
       purchase  price of any Common Stock or as a  stockholder  of the Company,
       whether such  liability is asserted by the Company or by creditors of the
       Company.

              j)     REMEDIES. Holder, in addition to being entitled to exercise
       all  rights  granted  by law,  including  recovery  of  damages,  will be
       entitled to specific  performance  of its rights under this Warrant.  The
       Company agrees that monetary  damages would not be adequate  compensation
       for any loss  incurred by reason of a breach by it of the  provisions  of
       this Warrant and hereby  agrees to waive and not to assert the defense in
       any  action  for  specific  performance  that a  remedy  at law  would be
       adequate.

              k)     SUCCESSORS  AND ASSIGNS.  Subject to applicable  securities
       laws, this Warrant and the rights and obligations  evidenced hereby shall
       inure to the benefit of and be binding upon the successors of the Company
       and the  successors  and permitted  assigns of Holder.  The provisions of
       this  Warrant are intended to be for the benefit of all Holders

                                       14
<PAGE>

       from time to time of this  Warrant and shall be  enforceable  by any such
       Holder or holder of Warrant Shares.

              l)     AMENDMENT.  This  Warrant may be modified or amended or the
       provisions  hereof waived with the written consent of the Company and the
       Holder.

              m)     SEVERABILITY.  Wherever  possible,  each  provision of this
      Warrant shall be  interpreted in such manner as to be effective and valid
       under  applicable  law, but if any  provision  of this  Warrant  shall be
       prohibited by or invalid under  applicable  law, such provision  shall be
       ineffective  to the extent of such  prohibition  or  invalidity,  without
       invalidating the remainder of such provisions or the remaining provisions
       of this Warrant.

              n)     HEADINGS.  The  headings  used in this  Warrant are for the
       convenience of reference only and shall not, for any purpose, be deemed a
       part of this Warrant.

                              ********************

                                       15
<PAGE>

              IN WITNESS  WHEREOF,  the Company  has caused  this  Warrant to be
executed by its officer thereunto duly authorized.

Dated:  March ___, 2006

                                        ELITE PHARMACEUTICALS, INC.

                                        By:_____________________________________
                                             Name: Bernard J. Berk
                                             Title: Chief Executive Officer

                                       16
<PAGE>

                               NOTICE OF EXERCISE

TO:    ELITE PHARMACEUTICALS, INC.

              (1)    The undersigned  hereby elects to purchase ________ Warrant
Shares of the Company  pursuant to the terms of the  attached  Warrant  (only if
exercised in full),  and tenders herewith payment of the exercise price in full,
together with all applicable transfer taxes, if any.

              (2)    Payment shall take the form of (check applicable box):

                     [_]    in lawful money of the United States; or

                     [_]    [if  permitted] the  cancellation  of such number of
                            Warrant Shares as is necessary,  in accordance  with
                            the  formula  set  forth  in  subsection   2(c),  to
                            exercise  this  Warrant  with respect to the maximum
                            number of Warrant Shares purchasable pursuant to the
                            cashless exercise  procedure set forth in subsection
                            2(c).

              (3)    Please issue a  certificate  or  certificates  representing
said Warrant  Shares in the name of the  undersigned or in such other name as is
specified below:

                                   ----------

The Warrant Shares shall be delivered to the following DWAC Account Number or by
physical delivery of a certificate to:

                    ----------------------------------------

                    ----------------------------------------

                    ----------------------------------------

              (4)    ACCREDITED  INVESTOR.  The  undersigned  is an  "accredited
investor" as defined in Regulation D  promulgated  under the  Securities  Act of
1933, as amended.

[SIGNATURE OF HOLDER]

Name of Investing Entity: ______________________________________________________

SIGNATURE OF AUTHORIZED SIGNATORY OF INVESTING ENTITY: _________________________

Name of Authorized Signatory: __________________________________________________

Title of Authorized Signatory: _________________________________________________

Date: __________________________________________________________________________

<PAGE>

                                 ASSIGNMENT FORM

                    (To assign the foregoing warrant, execute
                   this form and supply required information.
                 Do not use this form to exercise the warrant.)

              FOR  VALUE  RECEIVED,  [____]  all of or  [_______]  shares of the
foregoing Warrant and all rights evidenced thereby are hereby assigned to

_______________________________________________________________ whose address is

_______________________________________________________________________________.

________________________________________________________________________________

                                                  Dated: ______________, _______

                Holder's Signature:____________________________

                Holder's Address:  ____________________________

                                   ____________________________

Signature Guaranteed:  ___________________________________________

NOTE: The signature to this  Assignment Form must correspond with the name as it
appears on the face of the Warrant,  without  alteration or  enlargement  or any
change whatsoever,  and must be guaranteed by a bank or trust company.  Officers
of corporations and those acting in a fiduciary or other representative capacity
should file proper evidence of authority to assign the foregoing Warrant.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00099-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00099-of-00352.parquet"}]]