Document:

EXECUTION COPY

                    AMENDED AND RESTATED EMPLOYMENT AGREEMENT

         This  AMENDED AND RESTATED  EMPLOYMENT  AGREEMENT  (this  "AGREEMENT"),
dated as of September 2, 2005,  by and between  Elite  Pharmaceuticals,  Inc., a
Delaware corporation (the "COMPANY"), and Bernard Berk (the "EXECUTIVE").

                              W I T N E S S E T H:
                              -------------------

         WHEREAS, on June 23, 2003 the Company and the Executive entered into an
employment  agreement (the "ORIGINAL  EMPLOYMENT  AGREEMENT") which memorialized
the terms and conditions  under which the Executive would serve as the Company's
Chief Executive Officer;

         WHEREAS,  the Company and the  Executive  wish to amend and restate the
terms and  conditions  under which the  Executive  will continue to serve as the
Company's Chief Executive  Officer and Chairman of the Board of Directors of the
Company;

         NOW,  THEREFORE,  in consideration  of the mutual  covenants  contained
herein, the parties hereto agree as follows:

         Section 1. TERM OF  EMPLOYMENT;  REPRESENTATIONS  AND WARRANTIES OF THE
EXECUTIVE.  This  Agreement  shall  be  effective  as  September  2,  2005  (the
"EFFECTIVE DATE") and, subject to earlier termination as specified herein, shall
continue until the fourth anniversary of the Effective Date (the "INITIAL TERM",
and together with any extensions,  the "TERM"),  provided,  however, that unless
the Company or the Executive  gives  written  notice to the other party at least
sixty  (60)  days  prior to the  expiration  of the  then-current  Term that the
Company  or the  Executive,  as the  case  may  be,  elects  not to  renew  this
Agreement,  the then-current Term shall be automatically extended for additional
one-year  periods.  The Executive hereby represents and warrants that (i) he has
the legal capacity to execute and perform this Agreement, (ii) this Agreement is
a valid and  binding  obligation  of the  Executive  enforceable  against him in
accordance  with its terms,  (iii) the  Executive's  service  hereunder will not
conflict  with, or result in a breach of, any agreement,  understanding,  order,
judgment or other  obligation  to which the Executive is presently a party or by
which he may be bound,  and (iv) the  Executive  is not subject to, or bound by,
any  covenant  against  competition,  confidentiality  obligation  or any  other
agreement,  order, or judgment which would conflict with,  restrict or limit the
performance of the services to be provided by him hereunder.

         Section 2. POSITION AND DUTIES.  During the Term,  the Executive  shall
serve as the Chief  Executive  Officer of the  Company  and the  Chairman of the
Board of  Directors  of the Company (the "BOARD OF  DIRECTORS").  The  Executive
shall have such powers and duties as are commensurate  with such position and as
may be  conferred  upon him by the Board of  Directors.  During  the  Term,  the
Executive  shall devote all of his business time,  attention,  skill and efforts
exclusively to the business and affairs of the Company.

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         Section 3. COMPENSATION.  For all services rendered by the Executive in
any capacity  during the Term,  including,  without  limitation,  services as an
executive officer, director, or member of any committee of the Company or any of
its  subsidiaries,  affiliates  or divisions  thereof,  the  Executive  shall be
compensated as follows:

         (a) Effective as of May 1, 2005,  the Company shall be obligated to pay
the Executive a fixed salary at a rate per annum equal to Three  Hundred  Thirty
Thousand One Hundred Forty Dollars  ($330,140)  (the "BASE  Salary");  provided,
however that from the Effective  Date until  November 1, 2005, the Company shall
actually  pay the  Executive  at a rate per annum equal to Two Hundred  Thousand
($200,000) and all additional amounts of the Base Salary payable but not paid to
the  Executive  for the period  beginning  May 1, 2005 and ending on November 1,
2005  pursuant to the  immediately-preceding  sentence  shall  accrue and become
payable on November 1, 2005.  The Base Salary shall be subject to such  periodic
increases as the Board of Directors  shall deem  appropriate  in light of, among
other  factors,  the  then-existing  financial  condition of the Company and the
Executive's  success in implementing  the Company's  business plan and achieving
its strategic objectives. Except as otherwise provided in this Section 3(a), the
Base Salary shall be payable in accordance with the customary  payroll practices
of the Company.

         (b) The  Executive  shall be eligible to receive an annual  bonus in an
amount to be determined by the Compensation  Committee of the Board of Directors
in its sole and absolute discretion.  The Compensation Committee of the Board of
Directors  will give good faith  consideration,  in exercising its discretion to
determine  the  annual  bonus  of the  Executive,  to any  commercialization  of
products, merger or acquisition,  business combination or collaboration,  growth
in revenue and earnings,  additional  financings or other  strategic or business
transaction or combination that inures to the benefit of the stockholders of the
Company.  Any such bonus may be paid in the form of cash,  capital  stock of the
Company,  options or warrants exercisable for capital stock of the Company or in
such other form as the  Compensation  Committee of the Board of Directors  shall
determine.

         (c) The  Executive  shall be  entitled to four (4) weeks of vacation in
each calendar year during the Term; provided,  however, that the Executive shall
not be entitled to carryover  vacation from one year to any other year or to any
payment in respect of any unused or accrued vacation.

         (d) On  June  3,  2003,  the  Company  granted  the  Executive  options
("INITIAL OPTIONS") to purchase up to three hundred thousand (300,000) shares of
the  Company's  Common  Stock,  par value $.01 per share (the  "COMMON  STOCK"),
pursuant to the Company's 1997 Employee Stock Option Plan (the "1997 PLAN"). The
Initial Options (i) are, to the maximum extent  permitted under  applicable law,
intended to qualify as "incentive  stock options"  within the meaning of Section
422 of the  Internal  Revenue  Code,  (ii) are fully  vested as of June 3, 2003,
(iii) have a per share  exercise  price equal to $2.01,  the closing  price of a
share of Common Stock, as listed on the American Stock Exchange,  on the June 3,
2003,  and (iv) are  subject to the terms and  conditions  set forth in the 1997
Plan and the stock option agreement  previously  entered into by the Company and
the Executive.

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         (e) On June 23, 2003, the Company  granted to the Executive  options to
purchase up to three  hundred  thousand  (300,000)  shares of Common  Stock (the
"ADDITIONAL  OPTIONS").  For good and valuable  consideration received including
the Company's  execution and delivery of this  Agreement,  the Executive  hereby
waives and releases any and all rights and claims to receive or exercise  75,000
of the Additional  Options.  The remaining 225,000 of the Additional Options (i)
shall,  to the  maximum  extent  permitted  under  applicable  law,  qualify  as
"incentive  stock  options"  within the meaning of Section  422 of the  Internal
Revenue Code,  (ii) shall vest in full on the Effective Date, as a result of the
occurrence  of a Strategic  Transaction  (as defined in the Original  Employment
Agreement),  pursuant to the terms of the Original Employment  Agreement,  (iii)
shall have a per share  exercise  price equal to $2.15,  the closing  price of a
share of Common Stock, as listed on the American Stock Exchange, on the June 23,
2003, (iv) shall be evidenced by the stock option agreement  previously  entered
into by the Company and the Executive,  as amended simultaneously  herewith, and
(v) shall be subject to the terms and  conditions  set forth in the Stock Option
Agreement,  dated  as of June 23,  2003,  by and  between  the  Company  and the
Executive, as amended simultaneously herewith.

         (f) On the  Effective  Date,  the Company  shall grant to the Executive
options to purchase up to two hundred thousand  (200,000) shares of Common Stock
(the "SUBSEQUENT OPTIONS"), pursuant to the Company's 2004 Employee Stock Option
Plan, as amended (the "PLAN").  The Subsequent Options (i) shall, to the maximum
extent  permitted  under  applicable law,  qualify as "incentive  stock options"
within the meaning of Section 422 of the Internal  Revenue Code, (ii) shall vest
50% on  September  2 2006 and 50% on  September  2, 2007 (iii)  shall have a per
share  exercise  price equal to $2.69,  the  closing  price of a share of Common
Stock, as listed on the American Stock Exchange,  on September 1, 2005, and (iv)
are  subject  to the  terms and  conditions  set forth in the Plan and the stock
option  agreement  to  be  entered  into  by  the  Company  and  the  Executive,
simultaneously herewith.

         (g) On the  Effective  Date,  the Company  shall grant to the Executive
options to purchase up to four hundred thousand (400,000) shares of Common Stock
(the  "MILESTONE  OPTIONS"),  pursuant to the Plan.  The Milestone  Options (ii)
shall,  to the  maximum  extent  permitted  under  applicable  law,  qualify  as
"incentive  stock  options"  within the meaning of Section  422 of the  Internal
Revenue Code,  (ii) shall have a per share  exercise  price equal to $2.69,  the
closing  price of a share of  Common  Stock,  as listed  on the  American  Stock
Exchange,  on September 1, 2005,  (iii) are subject to the terms and  conditions
set forth in the Plan and the stock  option  agreement to be entered into by the
Company  and the  Executive,  simultaneously  herewith,  and (iv)  shall vest as
follows (up to a maximum of 400,000 shares of Common Stock in the aggregate):

                  (x) Milestone  Options  exercisable  for up to fifty  thousand
         (50,000)  shares of Common  Stock  shall vest upon the  closing of each
         product  license or product sale  transaction  (on a product by product
         basis and only once for each product) in which the Company  receives an
         aggregate  of at  least  $5,000,000  in net  cash  proceeds  (including
         royalties and signing,  license and  milestone  payments) in connection
         with such product transaction;

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                  (y)  Milestone  Options  exercisable  for up to  ten  thousand
         (10,000)  shares  of Common  Stock  shall  vest upon the  filing by the
         Company (in the  Company's  name) with the United  States Food and Drug
         Administration   (the  "FDA")  of  either  an   abbreviated   new  drug
         application  (an  "ANDA") or a new drug  application  (including  a NDA
         filed with the FDA under Section  505(b)(2) of the Federal Food,  Drug,
         and  Cosmetic  Act,  21 U.S.C.  Section  301 ET SEQ.) (a "NDA"),  for a
         product not covered by a previous FDA application; and

                  (z) Milestone  Options  exercisable  for up to forty  thousand
         (40,000) shares of Common Stock shall vest upon the approval by the FDA
         of any ANDA or NDA  (filed in the  Company's  name)  for a product  not
         previously approved by the FDA.

Upon  the  earlier  to  occur  of the  expiration  of the  Initial  Term of this
Agreement or the termination of Executive's  employment hereunder,  all unvested
Milestone  Options  granted  shall  automatically  terminate  and all vested but
unexercised  Milestone Options shall automatically  terminate in accordance with
the terms of the stock  option  agreement by and between the  Executive  and the
Company with respect to the Milestone Options and the Plan.

         (h) If the maximum number of Milestone Options shall have vested during
the Initial Term of this  Agreement,  the Company  shall grant to the  Executive
additional options to purchase shares of Common Stock (the "ADDITIONAL MILESTONE
OPTIONS"), pursuant to the Plan. The Additional Milestone Options (ii) shall, to
the maximum extent  permitted under  applicable law, qualify as "incentive stock
options"  within the meaning of Section 422 of the Internal  Revenue Code,  (ii)
shall have a per share  exercise  price equal to the closing price of a share of
Common Stock,  as listed on the American Stock  Exchange,  on the date of grant,
(iii) shall be subject to the terms and conditions set forth in the Plan and the
stock option  agreement  to be entered into by the Company and the  Executive on
the date of grant,  (iv)  shall be fully  vested  upon  grant,  and (v) shall be
granted as follows:

                  (x) Additional  Milestone Options  exercisable for up to fifty
         thousand  (50,000)  shares of Common  Stock  shall be granted  upon the
         closing  of each  product  license or product  sale  transaction  (on a
         product by product  basis and only once for each  product) in which the
         Company  receives  an  aggregate  of at  least  $5,000,000  in net cash
         proceeds  (including  royalties  and  signing,  license  and  milestone
         payments) in connection with such product transaction;

                  (y) Additional  Milestone  Options  exercisable  for up to ten
         thousand  (10,000)  shares of Common  Stock  shall be granted  upon the
         filing by the Company (in the Company's name) with the FDA of either an
         ANDA or NDA for a product  not covered by a previous  FDA  application;
         and

                  (z) Additional  Milestone Options  exercisable for up to forty
         thousand  (40,000)  shares of Common  Stock  shall be granted  upon the
         approval by the FDA of any ANDA,  NDA or 505(b)(2)  application  of the
         Company  (filed in the  Company's  name) for a product  not  previously
         approved by the FDA.

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<PAGE>

Upon  the  earlier  to  occur  of the  expiration  of the  Initial  Term of this
Agreement or the termination of Executive's employment hereunder, all Additional
Milestone  Options shall  automatically  terminate in accordance  the applicable
stock option  agreement to be entered into by and between the  Executive and the
Company with respect to such Additional Milestone Options (which agreement shall
be substantially similar to the other stock option agreements by and between the
Executive and the Company) and the Plan.

         (i) During the Term,  the  Company  shall pay the  Executive  a monthly
automobile allowance in the amount of Eight Hundred Dollars ($800).

         (j) The Executive shall be entitled to participate in all  compensation
and employee benefit plans or programs, and to receive all benefits, perquisites
and  emoluments,  for which any  salaried  employees of the Company are eligible
under any plan or program now or hereafter  established  and  maintained for the
employees of the Company,  to the fullest extent  permissible  under the general
terms and  provisions  of such  plans or  programs  and in  accordance  with the
provisions  thereof.  The  Executive  will be  entitled  to  participate  in the
Company's  qualified  401(k) plan and the Company  will make the maximum  annual
matching  contributions  to the  Executive's  account  thereunder  as  shall  be
permitted  by law for an  employee,  of the  Executive's  position  and  salary.
Notwithstanding  the  foregoing,  nothing in this  Agreement  shall preclude the
amendment  or  termination  of any such plan or program;  provided,  that,  such
amendment or termination is applicable  generally to the senior  officers of the
Company or any subsidiary or affiliate.

         (k)  During  the  Term,  the  Executive  shall  be  covered  under  the
directors' and officers' insurance policy maintained by the Company.

         Section 4.  BUSINESS  EXPENSES.  The Company shall pay or reimburse the
Executive for all reasonable  travel or other expenses incurred by the Executive
in connection  with the  performance  of his duties and  obligations  under this
Agreement,  subject to the Executive's  presentation of appropriate  vouchers in
accordance  with such  procedures as are  applicable  to senior  officers of the
Company and to preserve any deductions for Federal income  taxation  purposes to
which the Company may be entitled.

         Section 5. TERMINATION OF EMPLOYMENT;  EFFECTS THEREOF. (a) The Company
shall have the right,  upon  delivery  of written  notice to the  Executive,  to
terminate the  Executive's  employment  hereunder prior to the expiration of the
Term (i) pursuant to a Termination for Cause (as defined in Section 5(h)),  (ii)
upon the Executive's Permanent Disability (as defined in Section 5(h)), or (iii)
pursuant  to a Without  Cause  Termination  (as  defined in Section  5(h)).  The
Executive shall have the right,  upon delivery of written notice to the Company,
to terminate the Executive's employment hereunder prior to the expiration of the
Term in the Executive's sole discretion;  provided,  however,  that, without the
Company's written consent, no termination of the Executive's employment pursuant
to this sentence shall be effective  until thirty (30) days after receipt by the
Company of written notice of termination from the Executive. Notwithstanding the
foregoing,  the Executive shall have the right,  upon delivery of written notice
to the Company, to immediately terminate the Executive's employment hereunder in
the event that the Company (w) breaches this  Agreement by  materially  reducing
the  nature  or  scope  of  the  authorities,   powers,  functions,   duties  or
responsibilities  of the Executive  set forth in Section 2 of this  Agreement or
fails to pay the  Executive's  Base  Salary  when due and  such

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failure is not  remedied  within  five (5) days of receipt of written  notice of
such  failure  from  the  Executive,   (x)  otherwise  materially  breaches  its
obligations  pursuant to this  Agreement  and the  Company  fails to remedy such
other breach within thirty (30) days of receipt of written notice of such breach
from the Executive, (y) relocates its principal executive offices outside of New
Jersey or New York or (z)  consummates  a Change of Control Event (as defined in
Section  5(h))  with an  entity  and  the  Executive  elects  to  terminate  his
employment for any reason within ninety (90) days following the  consummation of
such Change of Control Event (a "TERMINATION FOR GOOD REASON").  The Executive's
employment hereunder shall terminate  automatically  without action by any party
hereto upon the Executive's death.

         (b) In lieu of any  severance  that may  otherwise  be  payable  to the
Executive pursuant to this Section 5 or any other provision of this Agreement or
any  policies of the Company,  whether  existing on the date hereof or in effect
from  time to time  hereafter,  in the event  that the  Company  terminates  the
Executive's  employment pursuant to a Without Cause Termination or the Executive
terminates the Executive's  employment pursuant to a Termination for Good Reason
(other than in connection with a Change of Control Event specified in clause (z)
of the  definition of  Termination  for Good Reason,  which shall be governed by
Sections 5(c) and 5(d)),  the Company shall (i) pay the Executive any earned but
unpaid  Base Salary plus any unpaid  reimbursable  expenses as of the  effective
date of  termination  of his  employment,  (ii) continue to pay the  Executive's
then-current  Base Salary (in  accordance  with the Company's  standard  payroll
practices)  and  reimburse  the  Executive  for the cost to replace the life and
disability  insurance  coverages  afforded to the Executive  under the Company's
benefit plans with substantially similar coverages, following the effective date
of termination of his  employment,  for a period equal to the greater of (x) the
remainder of the  then-current  Term,  or (y) two years  following the effective
date of  termination  and (iii) pay the  premiums  for the  Executive's  Company
provided health  insurance for the period during which the Executive is entitled
to continued health insurance coverage as specified in the Comprehensive Omnibus
Budget  Reconciliation  Act.  Other than as required  by law, no other  payments
shall be made, or benefits provided, by the Company under this Agreement.

         (c) In lieu of any  severance  that may  otherwise  be  payable  to the
Executive pursuant to this Section 5 or any other provision of this Agreement or
any  policies of the Company,  whether  existing on the date hereof or in effect
from time to time hereafter,  in the event that the Company consummates a Change
of Control  Event (as defined in Section  5(h)) with an entity and the Executive
elects to  terminate  his  employment  for any reason  within  ninety  (90) days
following the  consummation  of such Change of Control Event,  the Company shall
(i) pay the  Executive  any  earned  but  unpaid  Base  Salary  plus any  unpaid
reimbursable expenses as of the effective date of termination of his employment,
(ii)  pay  the  Executive,   in  twenty-four  (24)  equal  monthly  installments
commencing  on the  first  day of the  month  following  the  effective  date of
termination  of his  employment,  the sum of One Million  Dollars  ($1,000,000),
(iii) pay the  Executive's  then-current  Base  Salary (in  accordance  with the
Company's  standard  payroll  practices)  for a period  of  twelve  (12)  months
following the effective date of  termination,  (iv) following the effective date
of  termination of his  employment,  reimburse the Executive for the cost, for a
period  equal  to the  twelve  (12)  months  following  the  effective  date  of
termination,  of replacing the life and disability  insurance coverages afforded
to the Executive under the Company's  benefit plans with  substantially  similar
coverages and (v) pay the premiums for the

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Executive's  Company  provided health  insurance for the period during which the
Executive is entitled to continued health insurance coverage as specified in the
Comprehensive  Omnibus Budget Reconciliation Act. Other than as required by law,
no other payments shall be made, or benefits provided, by the Company under this
Agreement.

         (d) In lieu of any  severance  that may  otherwise  be  payable  to the
Executive pursuant to this Section 5 or any other provision of this Agreement or
any  policies of the Company,  whether  existing on the date hereof or in effect
from time to time hereafter,  in the event that the Company consummates a Change
of Control  Event (as defined in Section  5(h)) and the Company  terminates  the
Executive's  employment as Chief Executive  Officer of the Company in connection
with, or within one hundred eighty (180) days  following,  the  consummation  of
such Change of Control Event and other than a Termination for Cause, the Company
shall (i) pay the  Executive  any earned but unpaid  Base Salary plus any unpaid
reimbursable expenses as of the effective date of termination of his employment,
(ii)  pay  the  Executive,   in  twenty-four  (24)  equal  monthly  installments
commencing  on the  first  day of the  month  following  the  effective  date of
termination  of his  employment,  the sum of One Million  Dollars  ($1,000,000),
(iii) pay the  Executive's  then-current  Base  Salary (in  accordance  with the
Company's  standard  payroll  practices)  for a period  of  twelve  (12)  months
following the effective date of  termination,  (iv) following the effective date
of  termination of his  employment,  reimburse the Executive for the cost, for a
period  equal  to the  twelve  (12)  months  following  the  effective  date  of
termination,  of replacing the life and disability  insurance coverages afforded
to the Executive under the Company's  benefit plans with  substantially  similar
coverages and (v) pay the premiums for the Executive's  Company  provided health
insurance  for the period  during  which the  Executive is entitled to continued
health  insurance  coverage as specified  in the  Comprehensive  Omnibus  Budget
Reconciliation  Act.  Other than as required by law, no other  payments shall be
made, or benefits provided, by the Company under this Agreement.

         (e) In the event that the Company terminates the Executive's employment
pursuant to a Permanent Disability, the Company shall pay the Executive the same
amounts  that  would be payable to the  Executive  in the case of a  termination
under Section 5(b) less any amounts actually received by the Executive under any
Company provided and paid for disability insurance coverage. Other than pursuant
to the  terms of any  benefit  plan  then-maintained  by the  Company,  no other
payments  shall be  made,  or  benefits  provided,  by the  Company  under  this
Agreement except as otherwise required by law.

         (f) In the event that the Company terminates the Executive's employment
hereunder due to a Termination  for Cause or, except as provided in Section 5(b)
or Section 5(c) above, the Executive  terminates his employment with the Company
(including,  without limitation,  pursuant to any retirement plan or policy then
maintained by the  Company),  the Company shall pay the Executive any earned but
unpaid  Base Salary plus any unpaid  reimbursable  expenses as of the  effective
date of termination of his  employment.  Other than as required by law, no other
payments  shall be  made,  or  benefits  provided,  by the  Company  under  this
Agreement.

         (g) The Company will obtain and maintain a life insurance policy in the
amount of $1,000,000  on the life of the Executive  payable to the estate of the
Executive in the event of the Executive's death.

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         (h) For  purposes  of this  Agreement,  the  following  terms  have the
following meanings:

                  (i) "CHANGE OF CONTROL  EVENT" means,  in any one or series of
related  transactions,  (i)  a  merger  or  consolidation  in  which  securities
possessing  more than fifty percent (50%) of the total combined  voting power of
the Company's  outstanding  securities  are  transferred  to a person or persons
different from the persons holding those  securities  immediately  prior to such
transaction;   (ii)  the  sale,   transfer  or  other   disposition  of  all  or
substantially all of the Company's  assets;  (iii) the sale of securities by the
Company to a third party which  securities  constitute  more than fifty  percent
(50%) of the total combined voting power of the Company's outstanding securities
immediately  following such  transaction or (iv) the consummation of a strategic
combination  as a result of which new  directors to the Board of  Directors  are
appointed by stockholders  who are not  stockholders of the Company prior to the
consummation  of  such  Change  of  Control  Event,   such  that  the  directors
immediately  prior to the  consummation  of such  transaction  and the directors
appointed  by them  constitute  less  than 50% of the  members  of the  Board of
Directors immediately following such transaction.

                  (ii) "PERMANENT  DISABILITY" means permanently  disabled so as
to  qualify  for full  benefits  under the  Company's  then-existing  disability
insurance policy;  provided,  however, that if the Company does not maintain any
such policy on the date of determination,  "Permanent Disability" shall mean the
inability of the Executive to work for a period of six (6) full calendar  months
during any eight (8)  consecutive  calendar months due to illness or injury of a
physical  or mental  nature,  supported  by the  completion  by the  Executive's
attending physician of a medical certification form outlining the disability and
treatment.

                  (iii)  "TERMINATION  FOR CAUSE" means,  to the maximum  extent
permitted by applicable law, a termination of the Executive's  employment by the
Company  because the  Executive has (a) breached or failed to perform his duties
under  applicable  law  and  such  breach  or  failure  to  perform  constitutes
self-dealing,  willful  misconduct  or  recklessness,  (b)  committed  an act of
dishonesty in the performance of his duties hereunder,  (c) willfully engaged in
conduct that is detrimental  to the business of the Company,  (d) been convicted
of a felony or a misdemeanor  involving moral  turpitude,  (e) excessively  used
alcohol  or  illegal  drugs  so as to  interfere  with  the  performance  of the
Executive's obligations under this Agreement,  (f) breached or failed to perform
his  obligations  and duties  hereunder,  which breach or failure the  Executive
shall fail to remedy  within  thirty  (30) days after  written  demand  from the
Company  specifying in reasonable  detail such breach or failure,  (g) failed to
follow lawful,  written directives of the Board of Directors that are consistent
with the duties and obligations of the Executive  under this Agreement,  and the
Executive  shall  fail to remedy  such  failure  within  thirty  (30) days after
written  demand from the Board of  Directors,  or (h)  violated in any  material
respect  the  representations  made  in  Section  1 of  this  Agreement  or  the
provisions of Section 6 of this Agreement.

                  (iv) "WITHOUT  CAUSE  TERMINATION"  means a termination of the
Executive's  employment by the Company  other than due to Permanent  Disability,
death,  retirement or expiration (or  non-renewal)  of the Term and other than a
Termination for Cause.

                                       8
<PAGE>

         (e) Any  payments  to be made or benefits to be provided by the Company
pursuant to this Section 5 (other than in the event of the Executive's  death or
Permanent  Disability) are subject to the receipt by the Company of an effective
general release and agreement not to sue, in a form  reasonably  satisfactory to
the  Company  (the  "RELEASE"),  pursuant to which the  Executive  agrees (i) to
release all claims against the Company and certain  related  parties  (excluding
claims for (x) indemnification under the Company's Certificate of Incorporation,
by-laws or any Company provided  insurance policy or (y) any severance  benefits
payable hereunder),  (ii) not to maintain any action,  suit, claim or proceeding
against the Company, its subsidiaries and affiliates and certain related parties
relating to this Agreement, and (iii) to be bound by certain confidentiality and
non-disparagement  covenants  specified  therein.  The Company  shall  deliver a
general  release  and  agreement  not  to  sue  to  the  Executive,  in  a  form
substantially  similar to the  Release,  upon the  Executive's  delivery  of the
Release to the Company; provided, that, the general release and agreement not to
sue the Executive  shall not be effective  until following the expiration of any
revocation period applicable to the Release. Notwithstanding the due date of any
post-employment payment, the Company shall not be obligated to make any payments
under  this  Section  5 until  after the  expiration  of any  revocation  period
applicable to the Release under  applicable  law, as may be amended from time to
time  (which  revocation  period  is  presently  seven  (7) days  under  the Age
Discrimination Act).

         Section 6. OTHER  DUTIES OF  EXECUTIVE  DURING AND AFTER TERM.  (a) The
Executive  recognizes and  acknowledges  that all information  pertaining to the
affairs,  business,  clients,  or  customers  of  the  Company  or  any  of  its
subsidiaries  or  affiliates  (any or all of  such  entities  being  hereinafter
referred to as the "Business"), as such information may exist from time to time,
other than information that the Company has previously made publicly  available,
is confidential  information and is a unique and valuable asset of the Business,
access  to and  knowledge  of which  are  essential  to the  performance  of the
Executive's  duties under this Agreement.  In consideration of the payments made
to him  hereunder,  the  Executive  shall not,  except to the extent  reasonably
necessary in the performance of his duties under this Agreement,  divulge to any
person, firm, association,  corporation, or governmental agency, any information
concerning  the  affairs,  businesses,  clients,  or  customers  of the Business
(except  such  information  as is required by law to be divulged to a government
agency or pursuant to lawful  process),  or make use of any such information for
his  own  purposes  or for the  benefit  of any  person,  firm,  association  or
corporation  (except the Business) and shall use his reasonable  best efforts to
prevent  the  disclosure  of  any  such  information  by  others.  All  records,
memoranda,  letters,  books, papers, reports,  accountings,  experience or other
data, and other records and documents relating to the Business,  whether made by
the  Executive  or  otherwise  coming  into  his  possession,  are  confidential
information and are, shall be, and shall remain the property of the Business. No
copies  thereof  shall be made which are not retained by the  Business,  and the
Executive  agrees, on termination of his employment or on demand of the Company,
to deliver the same to the Company.

         (b) The Executive  recognizes and  acknowledges  that the Company shall
own all Work Product created or contributed to by the Executive  during the Term
and all Work Product  created or  contributed to by the Executive as an employee
or consultant of the Company (or its  subsidiaries  or affiliates)  prior to the
Effective Date (including,  without limitation,  during the

                                       9
<PAGE>

term of the  Original  Employment  Agreement).  As used herein,  "Work  Product"
includes,  but is not  limited  to, all  intellectual  property  rights,  US and
international  copyrights,  patentable  inventions,  creations,  discoveries and
improvements,  works of  authorship  and  ideas,  whether or not  patentable  or
copyrightable  and  regardless of their form or state of  development.  All Work
Product or  contributed  to by the Executive as an employee or consultant of the
Company (or its  subsidiaries  or affiliates)  shall be considered work made for
hire by the Executive and shall be owned by the Company.

                  (i) If any of the Work Product  created or  contributed  to by
the Executive as an employee or  consultant of the Company (or its  subsidiaries
or affiliates)  may not, by operation of law, be considered a work made for hire
by the  Executive  for the  Company,  or if  ownership  of all right,  title and
interest of the  intellectual  property  rights therein shall not otherwise vest
exclusively  in the Company,  the  Executive  shall  assign,  and upon  creation
thereof or contribution thereto shall be deemed to have automatically  assigned,
without  further  consideration,  the  ownership of all such Work Product to the
Company and its successors and assigns.  The Company, its successors and assigns
shall  have the  right to obtain  and hold in its or their own name  copyrights,
patents,  registrations and other protections available to the Work Product. The
Executive shall assist the Company,  during and after the Term, in obtaining and
maintaining patent,  copyright,  trademark and other appropriate  protection for
all Work Product in all countries and  jurisdictions,  at the Company's expense.
The Executive  hereby  irrevocably  relinquishes for the benefit of the Company,
its successors and assigns any moral rights in the Work Product recognized under
applicable law.

                  (ii) The Executive  shall disclose all Work Product created or
contributed  to by the  Executive as an employee or consultant of the Company or
its subsidiaries or affiliates  (before,  during and after the Term) promptly to
the  Company  and shall not  disclose  the Work  Product  to anyone  other  than
authorized  Company personnel  without the Company's prior written consent.  The
Executive  shall not  disclose  to the  Company or induce the Company to use any
secret or confidential information or material belonging to others.

                  (iii) The  provisions  of this Section 6(b) cover Work Product
of any kind that is conceived,  created, contributed to or made by the Executive
during the term of this  Agreement (and during the period prior to the Effective
Date that the  Executive  provided  employment  or  consulting  services  to the
Company or its subsidiaries or affiliates) that (i) relates  specifically to the
business of the Company or its  subsidiaries  and affiliates,  (ii) results from
tasks  assigned  to  the  Executive  by the  Company  or  its  subsidiaries  and
affiliates,  or  (iii)  are  conceived  or made  with the use of  facilities  or
materials, or confidential or proprietary information or trade secrets, provided
by the Company or its subsidiaries and affiliates.

         (c) In  consideration  of the  payments  to be made  to him  hereunder,
during the period (the "RESTRICTIVE PERIOD") commencing on the effective date of
the  termination  of his  employment  for any  reason  and  ending  one (1) year
thereafter,  the Executive shall not,  without express prior written approval of
the Company,  directly or  indirectly,  (i) solicit or assist any third party in
soliciting for  employment any person then currently  employed by the Company or
any of its subsidiaries and affiliates or who was employed by the Company or any
of its subsidiaries  and affiliates  during the three-month  period  immediately
preceding the termination of the

                                       10
<PAGE>

Executive's  employment  (collectively,  "EMPLOYEES"),  (ii) employ,  attempt to
employ or materially assist any third party in employing or attempting to employ
any Employee,  or (iii)  otherwise act on behalf of any  Competitor to interfere
with  the  relationship  between  the  Company  or any of its  subsidiaries  and
affiliates and their respective Employees.

         (d) The Executive  acknowledges that the restrictions contained in this
Section 6 are reasonable  and necessary to protect the  legitimate  interests of
the Company and that any breach by the Executive of any  provision  contained in
this  Section 6 will  result in  irreparable  injury to the  Company for which a
remedy at law would be inadequate.  Accordingly, the Executive acknowledges that
the Company shall be entitled to temporary, preliminary and permanent injunctive
relief against the Executive in the event of any breach or threatened  breach by
the  Executive  of the  provisions  of this  Section 6, in addition to any other
remedy that may be  available to the Company  whether at law or in equity.  With
respect to any  provision  of this  Section 6 finally  determined  by a court of
competent  jurisdiction to be  unenforceable,  such court shall be authorized to
reform this  Agreement or any provision  hereof so that it is enforceable to the
maximum extent  permitted by law. The parties hereto shall abide by such court's
determination.  If the covenants of Section 6(c) are  determined to be wholly or
partially  unenforceable in any jurisdiction,  such determination shall not be a
bar to or in any way diminish the Company's  right to enforce such  covenants in
any other jurisdiction.

         (e) The  Company's  obligation  to make  payments,  or provide  for any
benefits  under this  Agreement  (except to the extent  vested or  exercisable),
shall cease upon a violation by the Executive of the  provisions of this Section
6. The  provisions  of this  Section  6 shall  survive  any  termination  of the
Executive's  employment  with the Company.  The Company shall not be required to
post any bond or other security in connection with any proceeding to enforce the
provisions of this Section 6.

         Section 7. INDEMNIFICATION.  Prior to the Effective Date, the Executive
rendered  consulting  services to the Company pursuant to the terms of a certain
Consulting Agreement,  dated as of April 15, 2003 (the "CONSULTING  AGREEMENT"),
by and between the Company and Michael Andrews  Corporation (the  "CONSULTANT").
For  purposes  of the  Delaware  General  Corporation  Law (the  "DGCL") and the
provisions  of the  Company's  Certificate  of  Incorporation  and By-laws,  the
Executive,  the  Consultant  and  the  Consultant's   shareholders,   employees,
permitted agents and representatives shall each have the status of an "agent" of
the  Company  and,   accordingly,   (i)  the  Executive  shall  be  entitled  to
indemnification  and advancement of expenses from the Company in connection with
the performance of the Executive's  duties hereunder and (ii) the Consultant and
its  shareholders,  employees,  permitted  agents and  representatives  shall be
entitled to  indemnification  and  advancement  of expenses  from the Company in
connection  with the  performance of the Consulting  Services (as defined in the
Consulting  Agreement)  previously  rendered  to  the  Company  pursuant  to the
Consulting  Agreement,  in the case of clause (i) or (ii), to the fullest extent
permitted  by the  DGCL  and the  provisions  of the  Company's  Certificate  of
Incorporation  and By-laws.  In  addition,  to the maximum  extent  permitted by
applicable  law  (including  the DGCL),  the Company  shall  indemnify  and hold
harmless (i) the Executive against and in respect of any and all claims,  costs,
expenses,  damages,  liabilities,  losses or  deficiencies  (including,  without
limitation,  counsel's  fees and other costs and expenses  incident to any suit,
action or proceeding) (collectively,

                                       11
<PAGE>

"DAMAGES")  arising out of,  resulting  from or incurred in connection  with the
Executive's  performance of his duties hereunder,  except to the extent that any
such Damages  result from a breach of this  Agreement by the  Executive and (ii)
the  Consultant  and its  shareholders,  employees,  agents  or  representatives
against and in respect of any and all Damages arising out of,  resulting from or
incurred in  connection  with the  provision of the  Consulting  Services by the
Consultant, except to the extent that any such Damages result from (A) the gross
negligence or willful  misconduct  of the  Consultant  and/or its  shareholders,
employees  agents  or  representatives;   provided,   however,  any  such  gross
negligence  or  willful  misconduct  shall not limit the  Consultant  and/or its
shareholders,  employees,  agents or  representatives  right to  indemnification
arising  out of any claims by Dr.  Atul M.  Mehta,  the former  chief  executive
officer of the  Company,  surrounding  his  resignation  as the chief  executive
officer  of the  Company  or (B) a breach  of the  Consulting  Agreement  by the
Consultant.

         Section  8.  WITHHOLDINGS.  The  Company  may  directly  or  indirectly
withhold from any payments made under this Agreement all Federal, state, city or
other taxes and all other deductions as shall be required pursuant to any law or
governmental  regulation or ruling or pursuant to any contributory  benefit plan
maintained by or on behalf of the Company.

         Section 9.  CONSOLIDATION,  MERGER, OR SALE OF ASSETS.  Nothing in this
Agreement shall preclude the Company from consolidating or merging into or with,
or transferring  all or  substantially  all of its assets to, or engaging in any
other business  combination  with, any other person or entity which assumes this
Agreement and all obligations and  undertakings of the Company  hereunder.  Upon
such a consolidation,  merger,  transfer of assets or other business combination
and  assumption,  the term "Company" as used herein shall mean such other person
or entity and this Agreement shall continue in full force and effect.

         Section 10. NOTICES.  All notices and other  communications  under this
Agreement shall be in writing and, unless otherwise  provided  herein,  shall be
deemed duly given if delivered personally, by facsimile transmission (receipt of
which is confirmed) or upon receipt by the receiving party of any notice sent by
registered or certified mail (first-class mail, postage pre-paid, return receipt
requested) or by overnight courier or similar courier service, addressed, in the
case of the Executive,  at the address for the Executive  first set forth above,
or, in the case of the Company, at the address set forth below:

                          Elite Pharmaceuticals, Inc.
                          165 Ludlow Ave
                          Northvale, New Jersey  07647
                          Attention: Board of Directors
                          Facsimile No.: (201) 750-2401

or to such other  address as either  party shall have  previously  specified  in
writing to the other.

                                       12
<PAGE>

         Section  11. NO  ATTACHMENT.  Except as  required  by law,  no right to
receive  payments  under  this  Agreement  shall  be  subject  to  anticipation,
commutation,  alienation,  sale,  assignment,  encumbrance,  charge,  pledge, or
hypothecation  or  to  execution,   attachment,  levy,  or  similar  process  or
assignment by operation of law, and any attempt,  voluntary or  involuntary,  to
effect any such action shall be null, void and of no effect; provided,  however,
that nothing in this Section 11 shall  preclude the assumption of such rights by
executors, administrators or other legal representatives of the Executive or his
estate  and their  assigning  any  rights  hereunder  to the  person or  persons
entitled thereto.

         Section 12.  SOURCE OF PAYMENT.  All  payments  provided for under this
Agreement  shall be paid in cash  from the  general  funds of the  Company.  The
Company  shall not be required to establish a special or separate  fund or other
segregation  of assets to assure such  payments,  and, if the Company shall make
any  investments to aid it in meeting its obligations  hereunder,  the Executive
shall have no right,  title or interest  whatever in or to any such  investments
except as may otherwise be expressly  provided in a separate written  instrument
relating to such investments. Nothing contained in this Agreement, and no action
taken pursuant to its provisions, shall create or be construed to create a trust
of any kind, or a fiduciary relationship,  between the Company and the Executive
or any other person.  To the extent that any person  acquires a right to receive
payments from the Company  hereunder,  such right,  without  prejudice to rights
which  employees  may have,  shall be no greater  than the right of an unsecured
creditor of the Company.

         Section 13. BINDING AGREEMENT;  NO ASSIGNMENT.  This Agreement shall be
binding  upon,  and shall inure to the benefit of, the Executive and the Company
and their respective permitted  successors,  assigns,  heirs,  beneficiaries and
representatives.  This  Agreement  is personal to the  Executive  and may not be
assigned by him without the prior written consent of the Company.  Any attempted
assignment in violation of this Section 13 shall be null and void.

         Section 14.  EXPENSES.  Except as set forth  herein,  each party hereto
shall  pay  its  own  expenses   incident  to  the   preparation,   negotiation,
administration   and   enforcement  of  this  Agreement  and  the   transactions
contemplated herein.

         Section 15.  GOVERNING  LAW. This  Agreement  shall be governed by, and
construed in  accordance  with,  the  internal  laws of the State of New Jersey,
without reference to the choice of law principles thereof.

         Section 16. DISPUTE RESOLUTION.  At the option of either the Company or
the Executive,  any dispute,  controversy or question  arising under,  out of or
relating to this Agreement or the breach thereof, other than pursuant to Section
6 hereof,  shall be referred  for  decision by  arbitration  in the State of New
Jersey by a neutral  arbitrator  mutually  selected by the parties  hereto.  Any
arbitration   proceeding  shall  be  governed  by  the  Rules  of  the  American
Arbitration  Association  then in effect or such  rules  last in effect  (in the
event such Association is no longer in existence).  If the parties are unable to
agree upon such a neutral  arbitrator  within  twenty one (21) days after either
party has given the other  written  notice of the desire to submit the  dispute,
controversy  or question for decision as aforesaid,  then either party may apply
to the American Arbitration Association for a final and binding appointment of a
neutral  arbitrator,  however,  if such  Association is not then in existence or
does not act in the matter within forty five (45) days

                                       13
<PAGE>

of any such  application,  either party may apply to the presiding  judge of the
Superior  Court of any  county in New Jersey  for the  appointment  of a neutral
arbitrator to hear the parties and such judge is hereby  authorized to make such
appointment.  In the event that  either  party  exercises  the right to submit a
dispute,  controversy or question arising hereunder to arbitration, the decision
of the  neutral  arbitrator  shall  be  final,  conclusive  and  binding  on all
interested  persons and no action at law or in equity shall be instituted or, if
instituted,  further  prosecuted by either party other than to enforce the award
of the neutral arbitrator. The award of the neutral arbitrator may be entered in
any court that has  jurisdiction.  The Executive and the Company shall each bear
all their own costs (including the fees and  disbursements of counsel)  incurred
in connection with any such arbitration and shall each pay one-half of the costs
of any arbitrator appointed hereunder.

         Section 17. ENTIRE  AGREEMENT.  This  Agreement  shall  constitute  the
entire  agreement  among the parties with respect to the matters  covered hereby
and shall supersede all previous written,  oral or implied  understandings among
them  (including  the  Consulting  Agreement  and the Original  Agreement)  with
respect to such matters.

         Section 18. SEVERABILITY.  The invalidity of any provision hereof shall
not affect the validity,  force or effect of the remaining provisions hereof. In
the event that an arbitrator designated pursuant to the provisions of Section 16
or a court of competent  jurisdiction  determines  that any provision  contained
herein is not  enforceable as written because of the breadth or duration of such
provision, such arbitrator or court shall have the authority to modify the terms
of such provision so that, as so modified,  such provision  shall be enforceable
to the maximum extent permitted by applicable law.

         Section 19. AMENDMENTS. This Agreement may only be amended or otherwise
modified,  and  compliance  with any provision  hereof may only be waived,  by a
writing executed by all of the parties hereto. The provisions of this Section 19
may only be amended or otherwise modified by such a writing.

         Section 20. COUNTERPARTS.  This Agreement may be executed in any number
of  counterparts,  each of which shall be deemed to be an  original,  and all of
which shall together be deemed to constitute one and the same instrument.

                            (Signature Page Follows)

                                       14
<PAGE>

         IN WITNESS  WHEREOF,  the Company has caused this  Amended and Restated
Employment  Agreement to be duly  executed by the  undersigned,  thereunto  duly
authorized,  and the Executive  has signed this Amended and Restated  Employment
Agreement, all as of the date first written above.

                                                 ELITE PHARMACEUTICALS, INC.

                                                 By: /s/ Edward Neugeboren
                                                     ---------------------------
                                                     Name:  Edward Neugeboren
                                                     Title: Director

                                                 /s/ Bernard Berk
                                                 ---------------------------
                                                 Bernard Berk

                                       15AMENDMENT dated as of September 2 2005 (this
                  "AMENDMENT"),    by    and    among    Elite
                  Pharmaceuticals,     Inc.,     a    Delaware
                  corporation  (the  "COMPANY"),  and  Bernard
                  Berk (the  "EXECUTIVE")  to the Stock Option
                  Agreement, dated as of July 23, 2003.
                  --------------------------------------------

                  The Company  and the  Optionee  are parties to a Stock  Option
Agreement, dated as of June 23, 2003 (the "ORIGINAL STOCK OPTION AGREEMENT").

                  The  parties   desire  to  amend  the  Original  Stock  Option
Agreement to reduce the number of options  granted to the Executive.

                                    AMENDMENT

                  1. Each of the Company and the Executive agree that the number
of options to purchase  shares of Common Stock  pursuant to the  Original  Stock
Option  Agreement is hereby  reduced from options to purchase  300,000 shares of
common stock, par value $0.01 per share (the "COMMON STOCK"),  of the Company to
options to purchase 225,000 shares of Common Stock.

                  2.  Each  party  agrees  to  execute  such  other   documents,
instruments,  agreements  and  consents,  and take such other  actions as may be
reasonably  requested by the other parties  hereto to effectuate the purposes of
this Amendment.

                  3. No  modification,  amendment or waiver of any provision of,
or consent  required  by,  this  Amendment,  nor any  consent  to any  departure
herefrom,  shall be effective  unless it is in writing and signed by each of the
parties  hereto.  Such  modification,  amendment,  waiver  or  consent  shall be
effective only in the specific instance and for the purpose for which given.

                  4. This Amendment may be executed in one or more counterparts,
each of  which  shall  be  deemed  an  original  instrument,  but  all of  which
collectively shall constitute one and the same Amendment.

                  5. This  Amendment  shall  inure to the benefit of each of the
parties  hereto  and all their  respective  successors  and  permitted  assigns.
Nothing in this Amendment is intended or shall be construed to give to any other
person,  firm or corporation any legal or equitable right, remedy or claim under
or in respect of this Amendment or any provision herein contained.

                  6. THIS  AMENDMENT  SHALL BE  GOVERNED  BY, AND  CONSTRUED  IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF DELAWARE (WITHOUT GIVING EFFECT TO ANY
CHOICE OR CONFLICT OF LAWS PROVISIONS).

                  7.  This  Amendment   supersedes   all  prior   amendments  or
understandings among the parties relating to this Amendment. Except as set forth
above,  the  provisions of the

<PAGE>

Original  Stock  Option  Agreement  shall  remain in full  force  and  effect as
originally stated therein.

                [REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

                                      -2-
<PAGE>

         IN WITNESS WHEREOF,  the parties have executed this Amendment as of the
date first above written.

                                                 ELITE PHARMACEUTICALS, INC.

                                                 By: /s/ Edward Neugeboren
                                                     ---------------------------
                                                     Name:  Edward Neugeboren
                                                     Title: Director

                                                 /s/ Bernard Berk
                                                 ---------------------------
                                                 Bernard Berk

                                      -3-

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