Document:

Exhibit 10.3

July 30, 2008

PRIVATE & CONFIDENTIAL
----------------------

Bernard Beck
Chairman & Chief Executive Officer
Elite Pharmaceutical, Inc.
165 Ludlow Avenue
Northvale, NJ 07647

Dear Mr. Berk:

     This letter will serve as the engagement  agreement  ("AGREEMENT")  between
Elite  Pharmaceuticals,  Inc. (the "COMPANY"),  ROTH Capital  Partners,  LLC and
Boenning & Scattergood,  Inc. (the  "PLACEMENT  AGENTS") and amends and replaces
the  letter  agreement  dated as of April 24,  2008  among the  Company  and the
Placement  Agents.  The Company agrees to engage the Placement  Agents to act as
its co-lead  placement agents for a financing in the form of a private financing
(a "PRIVATE  PLACEMENT") of up to  approximately  $5 million through a privately
negotiated sale of common stock or convertible  preferred stock (in either case,
the "SHARES") of the Company.

1.   SERVICES OF THE PLACEMENT AGENTS
     --------------------------------

     The Placement Agents are prepared to commence work  immediately,  including
beginning their due diligence  activities and assisting the Company in preparing
and  providing  its  publicly  filed  documents  or other  reasonably  requested
materials  ("OFFERING  MATERIALS")  for  prospective  purchasers  in the Private
Placement.  The Placement Agents will also advise the Company in structuring the
Private Placement.  The Placement Agents will further:  (a) identify and contact
suitable   investors;   (b)  respond  to  questions,   coordinate  requests  for
information  and  meetings  with  the  Company  and  solicit   commitments  from
investors, and (c) otherwise assist in closing the Private Placement.

     It is  understood,  that the decision to proceed with,  and the final terms
of,  the  Private  Placement  will  depend on the  satisfactory  results  of the
Placement  Agents' due diligence  investigation  (including  review of legal and
accounting  issues),  the Company's business  prospects,  prevailing  securities
market conditions at the time of the Private Placement and final approval by the
Placement  Agents'  respective  Commitment  Committees.  It is  understood  that
execution of this  Agreement  does not assure the  successful  completion of the
Private Placement.

     The Placement  Agents agree that the Company shall be notified,  in writing
or by email, of each potential investor contacted by the Placement Agents.

2.   THE COMPANY'S ACTIONS AND RESPONSIBILITIES
     ------------------------------------------

     In connection with Placement Agents' activities:

         (a) The Company will comply with all  applicable  securities  and other
laws in connection with the Private  Placement  including,  without  limitation,
making all  appropriate  filings with  applicable  federal and state  securities
commissions or authorities, if so required,

<PAGE>

Elite Pharmaceuticals, Inc.
July ___, 2008
Page 2 of 10

         (b) The  Company  authorizes  the  Placement  Agents  to  transmit  the
Offering Materials to prospective purchasers in the Private Placement, as may be
identified to the Company, and represents and warrants that the information that
it provides to be included in the Offering  Materials,  at all times through the
closing,  will not contain any untrue  statement  of a material  fact or omit to
state any material fact  required to be stated  therein or necessary to make the
statements  contained  therein,  in light of the circumstances  under which they
were made, not misleading. The Company shall not transmit the Offering Materials
to any prospective purchasers without first advising the Placement Agents, other
than as may be provided through any co-placement agent.

         (c) The Company  represents and warrants that: (i) the  representations
and  warranties  contained  in  each  purchase  agreement  with  investors  (the
"PURCHASE  AGREEMENT") will be true and correct in all respects on the date such
Purchase Agreement is entered into and as of the closing date of the sale of the
Shares to which such Purchase Agreement  relates,  and (ii) the Placement Agents
shall be entitled to rely on such representations and warranties as if they were
made  directly to the  Placement  Agents.  The  Placement  Agents  shall also be
entitled to rely upon any opinions of counsel  delivered to any purchaser in the
Private Placement,  including,  without limitation, any opinions relating to the
registration statement.

         (d)  The  Company  shall  establish  an  escrow  account  (the  "ESCROW
ACCOUNT") with a suitable financial institution agreeable to the Company and the
Placement Agents (the "ESCROW AGENT"),  and shall enter into an escrow agreement
(the "ESCROW  AGREEMENT") with the Escrow Agent. Upon the closing of the Private
Placement  (or each such  closing if there  shall be more than one),  the Escrow
Agent shall deliver to the Company,  by wire transfer of  immediately  available
funds,  the funds deposited in the Escrow Account in payment for the securities,
less (x) the amounts  payable to the Escrow  Agent  pursuant to the terms of the
Escrow  Agreement,  and (y) the amounts payable to the Placement Agents pursuant
to Section 3 hereof.

         (e) The  Company  will not  authorize  any  other  person to act on its
behalf as investment  banker with respect to a Private Placement for a period of
90 days,  commencing  on the date of this  letter,  other  than such  additional
co-placement  agents as to which the Company shall have  provided  notice to the
Placement Agents,  subject to the consent of the Placement Agents, which consent
shall not be unreasonably  withheld,  conditioned or delayed;  PROVIDED that any
such co-placement agent has entered into a Co-Placement Agent Agreement with the
Placement Agents, a form of which has been provided to the Company. Nonetheless,
the  Placement  Agents  reserve the right to involve  other  Financial  Industry
Regulatory  Authority.  Inc. ("FINRA") member Broker Dealers in good standing in
the Private Placement,  subject to the approval of the Company,  which shall not
be unreasonably withheld.

3.   FEES & EXPENSES
     ---------------

         (a) As  compensation  for the services to be provided by the  Placement
Agents  hereunder,  the Company agrees to pay to the Placement Agents a cash fee
equal to 6.5% of the gross  proceeds  of the  Private  Placement  payable at the
closing of the Private  Placement.  In  addition,  the  Placement  Agents  shall
receive at the closing of the Private Placement a five-year non-callable warrant
to purchase that number of shares of the Company's common stock equal to 4.0% of
the number of shares of the Company's common stock sold in the Private Placement
(on an as-converted basis if shares of the Company's preferred stock are sold in
the Private  Placement) to investors  contacted by the Placement Agents with the
approval of the Company at a price per share equal to the greater of (i) 110% of
the conversion price per share of the common stock sold in the Private Placement
(or in the case of convertible  preferred stock,  110% of the price at which the
convertible  preferred  stock may be converted into common stock, as of the date
of the closing of the Private Placement), and (ii) the market price per

<PAGE>

Elite Pharmaceuticals, Inc.
July ___, 2008
Page 3 of 10

share of the Company's  common stock on the initial closing date. If the Private
Placement is consummated by means of more than one closing, the Placement Agents
shall be entitled to the fees and warrants  provided herein with respect to each
such closing.

         (b) In addition to the foregoing  fees,  and  regardless of whether any
Private  Placement is  consummated,  the Company  shall  reimburse the Placement
Agents for all reasonable  out-of-pocket  expenses incurred from time to time in
connection with the provision of the services  hereunder,  including  reasonable
fees and expenses of its counsel,  travel-related  expenses  (without  regard to
volume-  based or similar  credits or rebates the  Placement  Agents may receive
from travel agents,  airlines and other vendors on a periodic basis),  research,
database  and  similar  information  charges  paid to third party  vendors,  and
postage,  telecommunication and duplicating expenses.  Such fees will be limited
in the aggregate to $30,000 without prior written consent of the Company.

4.   TERMS OF ENGAGEMENT
     -------------------

     The Company or the Placement  Agents may  terminate  the Agreement  anytime
after the close of business on August 31. 2008 (the "TERMINATION DATE"), with or
without cause by notifying the other in writing 10 days prior to the Termination
Date.  This Agreement  shall  terminate,  without further action by either party
upon the earlier of (i) the date of the closing of the Private  Placement,  (ii)
provision by either party of written  notice and expiration of the 10-day period
described  above,  and (iii)  the  Termination  Date.  Following  the  Company's
termination  of  this  Agreement,  if  the  Company,  on  or  before  the  first
anniversary of the date of such termination,  sells securities of the Company to
any investors  contacted by the Placement  Agents in connection with the Private
Placement, the Company will pay to the Placement Agents the fees that would have
been  payable  to the  Placement  Agents  in  accordance  with  Section 3 above.
Termination of the Agreement shall not affect the Placement Agents' right (a) to
indemnification, contribution or reimbursement of expenses under this Agreement,
or (b) to any amounts owed on or prior to the date of such termination.  Without
limiting the foregoing,  notwithstanding  the expiration of this Agreement,  the
provisions of Sections 3 through 8, including, without limitation the obligation
to pay  additional  cash  fees and issue  additional  warrants  upon  additional
closings of the Private  Placement,  shall remain  operative in accordance  with
their respective terms.

5.   INDEMNIFICATION
     ---------------

     The   Company   agrees  to  provide   indemnification,   contribution   and
reimbursement to the Placement  Agents and certain other parties,  including any
co-placement  agents in accordance  with,  and the Company  further agrees to be
bound  by,  the  limitations  on  liability  and other  provisions  set forth in
SCHEDULE A attached hereto,  which SCHEDULE A is incorporated  herein and made a
part hereof.

6.   INFORMATION PROVIDED TO THE PLACEMENT AGENTS
     --------------------------------------------

     In performing the services  described  above, the Company agrees to furnish
or cause  to be  furnished  to the  Placement  Agents  such  information  as the
Placement Agents reasonably  believe  appropriate to permit the Placement Agents
to provide the services  contemplated by this Agreement (all such information so
furnished being the  "INFORMATION").  The Company  represents and covenants that
all  information  furnished  by the Company or its agents  will be complete  and
correct in all material respects and that during the term of this Agreement, the
Company will advise Placement Agents  immediately of the occurrence of any event
or any other  change  known by the  Company or its agents  which  results in the
Information  ceasing to be complete  and correct in all material  respects.  The
Company also represents and

<PAGE>

Elite Pharmaceuticals, Inc.
July ___, 2008
Page 4 of 10

warrants  that any  projections  or forecasts  that it provides to the Placement
Agents will be prepared in good faith and will be based upon  assumptions  which
the management of the Company  believes,  in light of the circumstances in which
they are made,  are  reasonable.  The Company  recognizes  and confirms that the
Placement  Agents  (a) will use and rely  primarily  on the  Information  and on
information available from generally recognized public sources in performing the
services  contemplated hereby without having  independently  verified any of the
same,  except to the extent that any such  information is inconsistent  with the
Information, (b) does not assume responsibility for the accuracy or completeness
of the  Information  and  such  other  information,  and (c)  will  not make any
appraisal of any of the assets or liabilities of the Company.

7.   CONFIDENTIALITY
     ---------------

         (a) Each Placement Agent agrees to maintain the  confidentiality of all
confidential information provided to it by the Company regarding the Company and
shall not disclose any such  confidential  information  to any person other than
employees and agents of the Placement  Agents without the prior written  consent
of the Company.  The obligations  regarding  confidential  information  received
hereunder shall not apply to any such information  which: (i) is or becomes part
of the  public  domain,  prior  to or  after  the  time  of  disclosure  of such
information,  or is or becomes publicly  available  without breach hereof by the
Placement  Agents;  (ii) is  lawfully  acquired by the  Placement  Agents from a
source  not  under  obligation  to the  Company  regarding  disclosure  of  such
information;  (iii) is disclosed to any third party by or with the permission of
the Company  without  confidentiality  restrictions;  (iv) is developed by or on
behalf  of  the  Placement   Agents  without   reference  to  or  reliance  upon
confidential  information  hereunder;  or  (v)  was  in  the  Placement  Agents'
possession   before   receipt  from  the  Company   without  being  bound  by  a
confidentiality   agreement  or  otherwise   prohibited  from  transmitting  the
information by a  confidential,  legal or fiduciary  obligation  with respect to
such information.

         (b) If either Placement Agent is required by judicial or administrative
process to disclose any information that it has agreed not to disclose  pursuant
to Section 7(a),  then the recipient of such  information  shall promptly notify
the other in order to afford the other a reasonable time to oppose such process.
The Placement  Agents will not oppose any action by the disclosing party to seek
a protective order or other remedy.

8.   COVENANTS, REPRESENTATIONS, AND WARRANTIES
     ------------------------------------------

         (a) Each Placement Agent is a duly registered broker-dealer pursuant to
the Securities  Exchange Act of 1934, as amended (the "ACT"),  and the rules and
regulations promulgated thereunder, and a member of good standing of the FINRA.

         (b) The Placement  Agents agree that the Placement Agents will maintain
the registrations,  qualifications and memberships referred to in paragraph 8(a)
in good  standing  and in full  force  and  effect  throughout  the term of this
Agreement.

         (c) The  Placement  Agents  undertake  to comply,  with  respect to the
offering of Shares, with all applicable laws, including without limitation,  all
applicable  provisions  of the Act, the  Investment  Company Act of 1940 and the
rules and regulations  thereunder,  and the applicable  rules of FINRA,  and the
Placement  Agents  will  indemnify  and hold the  Company  harmless  against any
liabilities  (including  costs  of  investigation  and  defense)  to  which  the
Placement  Agents become subject in respect of breach by the Placement Agents of
this Section 8.

<PAGE>

Elite Pharmaceuticals, Inc.
July ___, 2008
Page 5 of 10

         (d) During the term of this Agreement,  the Placement  Agents (i) shall
not engage in any form of general  solicitation or general  advertising which is
prohibited  by Regulation D  promulgated  under the Act in  connection  with the
Private Placement,  (ii) shall not solicit  prospective  purchasers of Shares in
the Private Placement unless the Placement Agents  reasonably  believe that such
purchaser  is an  "accredited  investor"  as  defined in Rule 501  Regulation  D
promulgated  under the Act, and (iii) shall cooperate fully with the Company and
its counsel with respect to compliance  with all applicable  federal,  state and
foreign securities and "blue sky" laws applicable to the Private Placement.

9.   MISCELLANEOUS
     -------------

         (a) This  Agreement  and all  controversies  arising from or related to
performance  under this Agreement  shall be governed by the internal laws of the
State of New York without regard to its rules  concerning  conflicts of laws. To
the full extent lawful,  each of the parties to this Agreement  hereby  consents
irrevocably to personal  jurisdiction,  service and venue (a) in connection with
any claim  arising  out of this  Agreement,  the courts of the State of New York
located in New York  County,  New York,  and the federal  courts in the Southern
District of New York,  and (b) solely for the purpose of allowing  any person to
enforce its reimbursement,  indemnification or contribution rights hereunder, in
any court in which any  action is  brought in respect of which any such right is
asserted.

         (b) This Agreement may not be amended or otherwise modified except by a
writing  signed by each of the  parties to this  Agreement.  No party may assign
this  Agreement  without the prior written  consent of the other  parties.  This
Agreement embodies the entire agreement and understanding  among the parties and
supersedes  any prior  agreements  and  understandings  relating  to its subject
matter,  including the prior letter agreement between the Company and Boenning &
Scattergood, Inc. (which upon execution of this Agreement shall terminate in its
entirety)  and any prior  agreement  between  Boenning &  Scattergood,  Inc. and
Oppenheimer & Co., Inc. If any provision of this  Agreement  shall be determined
to be invalid or  unenforceable  in any respect,  such  determination  shall not
affect  such  provision  in any other  respect  or any other  provision  of this
Agreement,  which shall remain in full force and effect.  This Agreement is made
solely for the benefit of the  Company and the  Placement  Agents  (and,  to the
extent  provided in SCHEDULE A, the  Indemnified  Parties) and their  respective
successors and assigns, heirs and personal representatives,  and no other person
shall have or acquire any rights under or by virtue of this Agreement.

         (c) Upon the  consummation  of the  Private  Placement,  the  Placement
Agents may, at their own expense,  place  announcements  in financial  and other
newspapers and periodicals describing its services in connection therewith.  The
content of such notice and the use of the Company's  logos,  trademarks or other
identifying  marks shall be subject to the  Company's  prior  written  approval,
which shall not be unreasonably withheld, conditioned or delayed.

         (d) This Agreement may be executed in counterparts, each of which shall
be  deemed  an  original  but all of  which  shall  constitute  one and the same
instrument.  Either  party's  execution  and delivery of this  Agreement  may be
evidenced  by  either  physical  delivery  or  facsimile  communication  of such
executed Agreement or executed counterpart to the other party.

         (e) The Board and the Company understand and acknowledge that Placement
Agents and their affiliates (collectively,  the "PLACEMENT AGENTS GROUP") engage
in providing investment banking,  securities trading,  financing,  and financial
advisory  services and other  commercial  and  investment  banking  products and
services to a wide range of institutions and individuals. In the ordinary course
of business, the Placement Agents Group and certain of its employees, as well as
investment funds

<PAGE>

Elite Pharmaceuticals, Inc.
July ___, 2008
Page 6 of 10

in which they may have financial interests,  may acquire,  hold or sell, long or
short  positions,  or trade or otherwise  effect  Private  Placements,  in debt,
equity, and other securities and financial instruments (including bank loans and
other  obligations)  of, or investments  in, a party that may be involved in the
matters  contemplated  by this Agreement.  With respect to any such  securities,
financial  instruments  and/or  investments,  all  rights  in  respect  of  such
securities, financial instruments and investments,  including any voting rights,
will be  exercised  by the  holder of the  rights,  in its sole  discretion.  In
addition, the Placement Agents Group may currently,  and may in the future, have
financial advisory or other investment banking  relationships with parties other
than the Company,  including parties that may have interests with respect to the
Company,  a Private Placement or other parties involved in a Private  Placement,
from which  conflicting  interests or duties may arise.  Although the  Placement
Agents  Group in the  course of such  other  activities  and  relationships  may
acquire  information  about the  Company,  a  Private  Placement  or such  other
parties,  the Placement Agents Group shall have no obligation to, and may not be
contractually  permitted  to,  disclose such  information,  or the fact that the
Placement Agents Group is in possession of such  information,  to the Company or
to use such information on the Company's behalf.

         (f) The parties  understand that the Placement Agents are being engaged
hereunder as an independent  contractor to provide the services  described above
solely  to the  Company,  and that the  Placement  Agents  are not  acting  as a
fiduciary  of the Company,  the security  holders or creditors of the Company or
any other persons in connection with this engagement.

         (g) The Placement Agents shall not be prevented from engaging in future
transactions  involving  companies in a similar industry to the Company provided
that no confidential  information of the Company is used in connection with such
engagement.

<PAGE>

Elite Pharmaceuticals, Inc.
July ___, 2008
Page 7 of 10

     Please indicate your acceptance of the foregoing by executing and returning
the enclosed copy of this letter

ROTH CAPITAL PARTNERS, LLC

By:  /s/ Zubin R. Mory
     ----------------------------
     Zubin R. Mory
     Managing Director

BOENNING & SCATTERGOOD, INC.

By:  /s/ David Parke
     ----------------------------
     David Parke
     Managing Director

Accepted  by:

ELITE PHARMACEUTICALS, INC.

By:  /s/ Bernard Berk
     ----------------------------                           --------------------
     Bernard Berk                                             Date
     Chairman & Chief Executive Officer

<PAGE>

                                   SCHEDULE A

     This  Schedule is attached  to, and  constitutes  a material  part of, that
certain  agreement  dated  July ___,  2008,  between  the  Company,  Boenning  &
Scattergood,  Inc.  and ROTH Capital  Partners,  LLC (the  "AGREEMENT").  Unless
otherwise  noted,  all capitalized  terms used herein shall have the meaning set
forth in the Agreement.

     As a material part of the  consideration for the agreement of the Placement
Agents to furnish their  services  under the  Agreement,  the Company  agrees to
indemnify and hold harmless the Placement Agents and their affiliates, and their
respective past, present and future directors,  officers,  employees, agents and
controlling  persons  within the meaning of either  Section 15 of the Securities
Act of 1933, as amended,  or Section 20 of the Securities  Exchange Act of 1934,
as amended  (collectively,  the  "INDEMNIFIED  PARTIES"),  to the fullest extent
lawful and not in  violation  of public  policy,  from and  against  any and all
losses,  claims,  damages or liabilities (or actions in respect thereof) arising
out of or related to the Agreement,  any actions taken or omitted to be taken by
an  Indemnified  Party  (including  acts  or  omissions   constituting  ordinary
negligence)  in  connection  with the  Agreement,  or any Private  Placement  or
proposed Private  Placement.  In addition,  the Company agrees to reimburse each
Indemnified Party for any reasonable legal or other expenses incurred by each of
them in  respect  thereof  at the time such  expenses  are  incurred;  PROVIDED,
HOWEVER,  the Company  shall not be liable  under the  foregoing  indemnity  and
reimbursement  agreement  for any  loss,  claim,  damage or  liability  which is
finally  judicially  determined  by a court of  competent  jurisdiction  to have
resulted  from the willful  misconduct or gross  negligence  of any  Indemnified
Party.

     If for any reason  the  foregoing  indemnification  is  unavailable  to any
Indemnified  Party or  insufficient to fully indemnify any such party or to hold
it harmless,  the Company shall  contribute to the amount paid or payable by the
Indemnified Party as a result of such losses,  claims,  damages,  liabilities or
expenses in such  proportion as is appropriate to reflect the relative  benefits
received (or  anticipated  to be received) by the Company,  on the one hand, and
the  Placement  Agents,  on the other  hand,  in  connection  with the actual or
potential  Private  Placement and the services rendered by the Placement Agents,
but also the relative  fault of the Company,  on the one hand, and the Placement
Agents,  on the  other  hand,  in  connection  therewith,  as well as any  other
relevant equitable considerations.  In no event shall the aggregate contribution
of the Indemnified Parties to all such losses, claims,  damages,  liabilities or
expenses exceed the amount of fees actually received by the Indemnified  Parties
pursuant to the Agreement.  The parties further agree that the relative benefits
to the  Company  on the one hand and the  Indemnified  Parties on the other with
respect to any Private  Placement  contemplated by the Agreement shall be deemed
in the same  proportion  as (i) the total value the Private  Placement  bears to
(ii)  the  fees  paid  to the  Placement  Agents  with  respect  to the  Private
Placement.

     The Placement  Agents shall provide the Company with prompt  written notice
of  the  commencement  of  any  action  or  proceeding  with  respect  to  which
indemnification  will be sought hereunder,  provided that the failure to provide
such notice will not relieve the Company from any liability  hereunder except to
the extent the Company is materially  prejudiced  thereby.  The Company shall be
entitled  to assume the defense of any such action or  proceeding  with  counsel
reasonably  satisfactory  to the  Indemnified  Parties.  Upon  assumption by the
Company of the defense of any such action or proceeding,  the Indemnified  Party
shall have the right to  participate  in such action or proceeding and to retain
its own counsel but the  Company  shall not be liable for any legal  expenses of
other counsel subsequently incurred by such Indemnified Party in connection with
the  defense  thereof  unless  (i) the  Company  has agreed to pay such fees and
expenses,  (ii) the  Company  shall  have  failed to employ  counsel  reasonably
satisfactory to the

<PAGE>

Indemnified  Parties in a timely manner,  or (iii) the  Indemnified  Party shall
have been  advised by counsel  that  there are actual or  potential  conflicting
interests between the Company and the Indemnified Parties,  including situations
in which there are one or more legal defenses available to the Indemnified Party
that are  different  from or  additional  to  those  available  to the  Company,
PROVIDED,  HOWEVER,  that the Company shall not, in connection with any one such
action  or  proceeding  or  separate  but   substantially   similar  actions  or
proceedings arising out of the same general allegations,  be liable for the fees
and  expenses  of  more  than  one  separate  firm  of  attorneys  per  relevant
jurisdiction (plus local counsel) at any time for all Indemnified Parties.

     Each party agrees that it shall not effect any  settlement  or release from
liability in connection with any matter for which an Indemnified  Party would be
entitled to indemnification from the Company,  unless such settlement or release
contains a release of the indemnified  Parties  reasonably  satisfactory in form
and substance to the other party. The Company shall not be required to indemnify
any  Indemnified  Party for any  amount  paid or  payable  by such  party in the
settlement  or compromise  of any claim or action  without the  Company's  prior
written consent.

     The Company further agrees that neither the Placement  Agents nor any other
Indemnified  Party shall have any  liability,  regardless  of the legal  theory,
advanced,  to the  Company  related to or arising  out of the  Placement  Agents
engagement, except for any liability for losses, claims, damages, liabilities or
expenses incurred by the Company which are finally judicially determined to have
resulted  from the bad faith,  willful  misconduct  or gross  negligence  of any
Indemnified  Party.  The  indemnity,   reimbursement,   contribution  and  other
obligations  and  agreements  of the Company set forth herein shall apply to any
modifications of the Agreement,  shall be in addition to any liability which the
Company may otherwise  have,  and shall be binding upon and inure to the benefit
of any successors,  assigns,  heirs and personal  representatives of the Company
and  each  Indemnified  Party.  The  foregoing   provisions  shall  survive  the
consummation of any Private  Placement and any  termination of the  relationship
established by the Agreement.EX-4.2

 

    Exhibit
    4.2

    Form of Employment Contract entered into with Company
    Officers

 

    [Day Month
    Year]

    

    [Name]

    [Address] 

    [Address] 

    [Address]
    

 

    Dear [Name],

 

    On behalf of Pharmaxis Ltd (“Company”), I have
    pleasure in offering you a further contract of employment in
    accordance with the particulars contained in this letter. If you
    accept this offer, the terms and conditions set out in this
    letter will supersede and replace all prior employment
    agreements and understandings. Any accrued employee entitlements
    you may have prior to the acceptance of this letter will not be
    affected by your acceptance of this letter.

 

    1 Nature
    of Position

 

    The position is as [Position Title] and is with the Company.
    Your employment will be based at the Company’s offices in
    Sydney. You may have to travel to other places from time to time
    to carry out your duties. You will report to the Chief Executive
    Officer and your duties and responsibilities will be as required
    from time to time by the Chief Executive Officer.

 

    You must observe all rules, directions and policies of the
    Company and all applicable legal and regulatory requirements,
    perform your duties faithfully in a diligent and professional
    manner and to the best of your ability, use your best efforts in
    furtherance of the business of the Company and not do anything
    without the consent of the Company which conflicts with your
    duties or with the business interests of the Company.

 

    2 Duration
    of Contract

 

    This is a full time position effective from [Start Date]
    (“Start Date”) — the date your current
    contract expires. You will be required to work a minimum of
    5 days per week. Hours of duty per day will be based
    broadly upon the Company’s normal working hours. You may
    also be required to work additional hours or additional days as
    reasonably required by the Company or as otherwise required in
    order to successfully fulfill the requirements and duties of
    your position with the Company, if you are able to do so. Your
    remuneration has been calculated on the basis that it includes
    payment for reasonable additional hours that you may be required
    to work from time and that no overtime payments will be payable.

 

    Subject to the earlier termination of your employment, the term
    of your employment will be to [End Date] (“End Date”),
    after which date it is agreed and understood that your
    employment with the Company terminates automatically unless this
    contract is extended in writing or a further written contract of
    employment is entered into. The Company will endeavour to
    discuss its intentions no later than three months before the
    expiry of this contract. Notwithstanding any representation to
    the contrary, the Company is not under any obligation express or
    implied, to renew your contract or offer you any employment
    after the expiry of the contract term unless the contract is
    formally extended in writing before the End Date.

 

    3 Remuneration

 

    Your annual remuneration will comprise of the following:

 

		
	    – 
	    A base salary of $[XXX,XXX] per annum with effect from your
    Start Date payable in 12 equal calendar monthly installments on
    the usual payment date for employees and deposited into a bank
    account nominated by you by electronic funds transfer or an
    alternative method selected by the Company.

	 
	    – 
	    Superannuation in line with statutory requirements will be paid
    in accordance with the Company’s policies to either the
    superannuation plan appointed by the Company or an appropriate
    superannuation fund nominated by you. Currently this amount
    comprises 9% of your base salary.

	 	 	 	 	 
	
    Pharmaxis Ltd

    ABN
    75 082 811 630
    
	
 
	
    Unit 2, 10
    Rodborough Road

    Frenchs Forest NSW 2086

    Australia
    
	
 
	
    T 02 9454 7200

    F 02 9451 3622

    www.pharmaxis.com.au
    

 

 

		
	    – 
	    In addition, you may at the discretion of the Remuneration
    Committee of the Company be awarded a performance related bonus
    which may be awarded subject to you meeting an agreed set of key
    performance indicators. The maximum achievable bonus will be
    determined by the Remuneration Committee at the start of the
    financial year, and the amount of bonus to be paid, will be
    determined by the Remuneration Committee of the Company at the
    end of the financial year. The Company will endeavour to pay any
    bonus by 1 September of the relevant year.

	 
	    – 
	    The costs of professional society memberships, where
    appropriate, will be met by Pharmaxis.

 

    4 Employee
    Option Scheme

 

    The Company operates an Employee Option Scheme in which you will
    continue to participate. The number of options you are granted
    is determined by the Remuneration Committee of the Company.

 

    5 Leave

 

    Conditions of employment for holidays and leave are as provided
    under applicable law and awards and are at present:

 

		
	    – 
	    annual leave accruing based on the number of days worked at a
    rate of 20 days per annum of employment. Annual leave
    should normally be taken in the year in which it accrues. Any
    leave loading required to be paid by law forms part of your base
    salary The Company may from time to time notify employees of
    fixed close down periods which will be deducted from your annual
    leave entitlement;

	 
	    – 
	    public holidays as gazetted in the state in which your
    employment is based;

	 
	    – 
	    personal leave accruing based on the number of days worked at a
    rate of 13 days per annum of employment. Personal leave is
    cumulative. A medical certificate may be required. Unused
    personal leave is not paid out on termination of your employment;

	 
	    – 
	    long service leave in accordance with applicable law in the
    state in which you are based;

	 
	    – 
	    parental leave in accordance with applicable law and the
    Company’s policies; and

	 
	    – 
	    compassionate leave in accordance with the Company’s
    policies.

 

    6 Confidentiality

 

			
	 	    6.1 
	
    During the course of your employment, you will become acquainted
    with or have access to confidential information regarding the
    activities of the Company and other third parties. You must keep
    confidential and not disclose to any person any information
    which you obtain in the course of your employment and which is
    not available to the public, other than in a manner expressly
    authorized by the Company. Such information would include
    commercial information about the business, financial plans,
    strategy, sales and marketing information, processes, production
    techniques, intellectual property, technical information, trade
    secrets, know-how and other processes. During and after your
    employment, you must not use any information which you obtain in
    the course of your employment and which is not available to the
    public other than in the performance of your duties and for the
    benefit of the Company or otherwise in a manner expressly
    authorised by the Company.

 

    6.2 You must:

 

			
	 	    6.2.1 
	
    only use the information exclusively as required in the
    performance of your employment with the Company for the benefit
    or advantage of the Company and for no other purpose;

	 
	 	    6.2.2 
	
    strictly adhere to the Company’s policies in relation to
    the treatment of confidential information;

	 
	 	    6.2.3 
	
    comply with any security measures established by the Company and
    safeguard the information from unauthorised access or use;

	 
	 	    6.2.4 
	
    not make any unauthorised copies of the whole or any part of the
    information;

    

    2

 

 

			
	 	    6.2.5 
	
    immediately notify the Company of any suspected or actual
    unauthorised use, copying or disclosure of the information, of
    which you become aware; and

	 
	 	    6.2.6 
	
    during and after your employment, provide assistance reasonably
    requested by the Company in relation to any proceedings it may
    take against any person for unauthorised use, copying or
    disclosure of the information.

 

			
	 	    6.3 
	
    Your obligations of confidentiality under this clause do not
    extend to information that:

 

			
	 	    6.3.1 
	
    was rightfully known to or in your possession or control, prior
    to your first involvement with the Company and which was not
    then subject to an obligation of confidentiality on your part;

	 
	 	    6.3.2 
	
    is public knowledge (otherwise than as a result of breach by you
    of an obligation of confidentiality or a breach of confidence by
    any other person); or

	 
	 	    6.3.3 
	
    is required by law to be disclosed.

 

    7 Intellectual
    Property

 

			
	 	    7.1 
	
    You must promptly, fully and effectively disclose to the Company
    or its nominee full details of:

 

			
	 	    7.1.1 
	
    each and every invention (whether patentable or not), process,
    know-how, formula design (whether registrable or not), trademark
    or service mark and all other intellectual or industrial
    property rights of all kinds; and

	 
	 	    7.1.2 
	
    any copyright material, trade secret or other confidential
    information,

 

    generated by you at any time during your employment (whether or
    not during business hours), relating to or connected with any of
    the matters which have been, are or may become subject of
    Company’s business affairs or business and whether or not
    capable of statutory protection (“Company Intellectual
    Property”).

 

			
	 	    7.2 
	
    In exchange for the benefits conferred on you by your employment:

 

			
	 	    7.2.1 
	
    you agree that by virtue of this provision, to the extent
    permitted by law, all Company Intellectual Property is the
    property of the Company or its nominee and vests in the

    Company immediately upon creation;

	 
	 	    7.2.2 
	
    as any Company Intellectual Property is developed, created or
    invented, you irrevocably and absolutely assign to the Company
    your entire right title and interest both present and future
    throughout the world to and in the Company Intellectual Property
    free from all mortgages, charges and other third party interests;

	 
	 	    7.2.3 
	
    you consent to all acts or omissions by the Company in relation
    to your moral rights in all copyright works in such Company
    Intellectual Property; and

	 
	 	    7.2.4 
	
    you consent to the infringement of your moral rights in all
    copyright works referred to in such Company Intellectual
    Property, its licensees, assignees and successors in title and
    any person authorised by the Company at the absolute discretion
    of the Company and without reference to you.

 

			
	 	    7.3 
	
    You must during and after your employment, at the request and
    expense of the Company and without additional compensation from
    the Company, sign all such documents (including assignment
    deeds) and do all such things as may be necessary to vest,
    confirm and perfect and record ownership by the Company or its
    nominee throughout the world of the right, title and interest to
    and in the Company Intellectual Property and to enable the
    Company or its nominee to acquire and preserve such rights and
    to have the full enjoyment of such intellectual property.

	 
	 	    7.4 
	
    You must keep complete written records of everything you invent
    or develop. These records belong to the Company and must be at
    all times retained in your custody and control at the
    Company’s premises and must be handed to the Company on
    demand.

    

    3

 

    8 Termination
    and expiration of your Employment

 

			
	 	    8.1 
	
    Either party may terminate your employment by giving three
    months written notice to the other party. The Company may pay
    you for the notice period in lieu of notice, or require you to
    work some of the notice period and pay you in lieu for the
    balance of the period.

	 
	 	    8.2 
	
    The Company may also terminate your employment without notice
    for “cause”, including without limitation if:

 

			
	 	    8.2.1 
	
    you commit any serious or persistent breach of this agreement;

	 
	 	    8.2.2 
	
    you fail to comply with any reasonable directions of the
    Company; 8.2.3 you are guilty of any serious misconduct or
    wilful neglect in performing your duties;

	 
	 	    8.2.4 
	
    you engage in fraudulent conduct or are found guilty of an
    indictable offence;

    

	 
	 	    8.2.5 
	
    you are found to have used alcohol or drugs intemperately;

    

	 
	 	    8.2.6 
	
    you are in breach of any Company policy; or

	 
	 	    8.2.7 
	
    you recklessly or intentionally injure the Company’s
    business or affairs or bring the Company into disrepute.

 

			
	 	    8.3 
	
    You acknowledge that the periods of notice or lack of periods of
    notice set out above are reasonable.

	 
	 	    8.4 
	
    On the expiry or termination of the contract, you will be paid
    an amount in lieu of any accrued but unused annual leave and
    long service leave entitlements.

	 
	 	    8.5 
	
    When your employment ends, you must deliver to the Company all
    property belonging to, or leased by, the Company or an
    associated company in your control, including stationery, cheque
    books, books, documents, records, disks, access cards, keys,
    mobile telephone, computer hardware, credit cards and motor
    vehicle any computer login codes and all confidential
    information.

 

    9 Restrictive
    Covenants

 

			
	 	    9.1 
	
    You must not during your employment and for a period of twelve
    months after termination of your employment], directly or
    indirectly, on your own account or on behalf of any person or
    entity, anywhere in which the Company or its associates carries
    on business participate, promote, carry on, assist or otherwise
    be concerned or interested financially or otherwise, in any
    capacity (including as principal, agent, partner, employee,
    shareholder, unitholder, director, trustee, beneficiary,
    financier, consultant or adviser) in any business or activity
    which is the same as, or substantially similar to the business
    of the Company or its associates, unless the Company otherwise
    agrees in writing;

	 
	 	    9.2 
	
    You must not during your employment and for a period of
    12 months after termination of your employment, directly or
    indirectly, on your own account or on behalf of any person or
    entity, anywhere in which the Company or its associates carries
    on business:

 

			
	 	    9.2.1 
	
    solicit, canvass, induce or encourage any employee or agent of
    the Company or its associates to leave the employment or agency
    of the Company or such associates;

	 
	 	    9.2.2 
	
    solicit, canvass, approach any customer or prospective customer
    of the Company or its associates with a view to soliciting the
    business of that customer; or

	 
	 	    9.2.3 
	
    interfere or seek to interfere with the relationship between the
    Company or its associates (on the one hand) and the customers,
    prospective customers, distributors, suppliers and employees of
    the Company or its associates (on the other hand).

 

			
	 	    9.3 
	
    You acknowledge the prohibitions and restrictions contained in
    this clause 9 are reasonable in the circumstances and
    necessary to protect the Company and its associate’s
    businesses.

	 
	 	    9.4 
	
    For the purpose of this clause 9, an “associate”
    is any corporation, venture, partnership or other business
    entity or vehicle over which the Company has direct or indirect
    control or which has direct or indirect

    

    4

 

			
	 	
	
    control over the Company. A “prospective customer”
    means any person, firm or company who has been engaged in
    discussion with the Company with a view to purchasing goods or
    services from the Company during the period of six months
    immediately prior to the termination date.

 

			
	 	    9.5 
	
    Each of the obligations contained in the above provisions of
    this clause constitutes an entirely separate and independent
    restriction notwithstanding that they may be contained in the
    same sub-clause, paragraph, sentence or phrase. This clause must
    be read down to the extent necessary to be valid.

	 
	 	    9.6 
	
    The covenants set out in this clause are considered by both you
    and the Company to be reasonable and necessary for the
    protection of the Company’s legitimate interests in all the
    circumstances and in particular by reason of your access to
    highly confidential information relating to the Company’s
    business.

 

    10 Outside
    Interests

 

			
	 	    10.1 
	
    Without limiting clause 9, during your employment with the
    Company, you must not directly or indirectly:

 

			
	 	    10.1.1 
	
    engage in any outside activity (including employment,
    profession, trade, business, membership of House of Parliament
    or other public office or appointment), whether paid or unpaid;
    or

	 
	 	    10.1.2 
	
    have an interest in any business or company (other than
    companies listed on the Australian Stock Exchange),

 

    which could, in the Company’s opinion, conflict with your
    duties, without written approval of the board of directors of
    the Company.

 

			
	 	    10.2 
	
    If the Company requests, you must disclose to the Company all
    your outside activities and interests in businesses and
    companies.

 

    11 Policy
    with Respect to Smoking

 

    Smoking is not permitted in any building occupied by the Company.

 

		
	
    12 
	
    Special
    Conditions — insert any specific conditions negotiated
    under this heading, otherwise delete]

 

    13 General
    Conditions

 

			
	 	    13.1 
	
    The failure of the Company at any time to insist on performance
    of any provision of the terms of employment set out in this
    document is not a waiver of its right at any later time to
    insist on performance of that or any other provision of this
    letter.

	 
	 	    13.2 
	
    If you accept the terms set out in this letter, all prior
    employment agreements and understandings are superseded and
    replaced by these terms and conditions (effective as of the date
    you sign this document). This letter sets out the entire
    understanding and agreement between the parties with respect to
    the terms and conditions of the employment offered with the
    Company and supersede all other prior agreements and
    understandings, both written and oral, among the parties with
    respect to the subject matter hereof.

	 
	 	    13.3 
	
    The terms of employment set out in this document will continue
    to apply except to the extent that they are varied, replaced or
    cancelled by agreement in writing signed by both parties.

    

	 
	 	    13.4 
	
    A provision of this contract must be read down to the extent
    necessary to be valid in a particular jurisdiction. If it cannot
    be read down it must be severed.

	 
	 	    13.5 
	
    The interpretation of the agreement constituted by your
    acceptance of this offer is governed by the laws of the State of
    New South Wales.

 

    Importantly, I thank you for your contribution to the growth of
    Pharmaxis and look forward to the future.

 

    Acceptance of this offer of a contract of employment, on the
    terms and conditions set out in this letter of offer will be
    signified by your signing both copies of this letter and
    returning one copy to me by [Offer Lapse Date].

    Yours
    sincerely,
    

 

    Accepted

 

    Alan D
    Robertson

    Chief Executive Officer

    Pharmaxis Ltd
    

    [Name]

    

    5

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00147-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00147-of-00352.parquet"}]]