Document:

ex101to8k07319_04302009.htm

    Exhibit 10.1

     

    
      EXECUTION
COPY

      

      

      FIRST AMENDMENT AND CONSENT
TO CREDIT AGREEMENT

      

      

      THIS FIRST AMENDMENT AND CONSENT TO
CREDIT AGREEMENT (the “Amendment”), dated as
of May 1, 2009, is to that certain Amended and Restated Credit Agreement dated
as of June 21, 2007 (as amended, modified, extended, restated, replaced, or
supplemented from time to time, the “Credit Agreement”),
by and among GENCORP
INC., an Ohio corporation (the “Borrower”), the
subsidiaries of the Borrower from time to time party thereto (the “Guarantors”), the
lenders from time to time party thereto (the “Lenders”), and WACHOVIA BANK, NATIONAL
ASSOCIATION, as administrative agent for the Lenders (the “Administrative
Agent”).  Capitalized terms used herein but not otherwise
defined shall have the meanings ascribed thereto in the Credit
Agreement.

      

      

      W I T N E S S E T
H

      

      WHEREAS, the Lenders have
established credit facilities for the benefit of the Borrower pursuant to the
terms of the Credit Agreement;

      

      WHEREAS, the Borrower has
informed the Administrative Agent that Snappon SA (“Snappon”), a French
subsidiary of the Borrower which is not a Credit Party or Significant Subsidiary
under the Credit Agreement, has had legal judgments rendered against it totaling
approximately $4 million that are immediately due and payable in cash under
French law (the “Snappon
Judgments”); 

      

      WHEREAS, the Borrower has
further informed the Administrative Agent that, rather than appeal or pay the
Snappon Judgments, it may commence voluntary bankruptcy, insolvency or similar
proceedings with respect to Snappon while also recognizing that nonpayment of
the Snappon Judgments to the claimants could result in the claimants initiating
involuntary bankruptcy, insolvency or similar proceedings against Snappon, and
any commencement of voluntary or involuntary bankruptcy, insolvency or similar
proceedings with respect to Snappon (each a “Bankruptcy Event”)
may violate Section
7.1(f) of the Credit Agreement to the extent any such Bankruptcy Event
has not been cured by the Borrower or Snappon or waived by the Required Lenders
within sixty (60) days of any such Bankruptcy Event occurring;

      

      WHEREAS, the Borrower has
requested that the Required Lenders (a) agree to certain amendments to the
Credit Agreement and (b) consent to any Bankruptcy Event; and

      

      WHEREAS, the Required Lenders
are willing to (a) amend the Credit Agreement and (b) consent to any Bankruptcy
Event, in each case subject to the terms and conditions hereof.

      

      NOW, THEREFORE, IN
CONSIDERATION of the agreements herein contained, the parties hereby
agree as follows:

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      SECTION
1

      AMENDMENT

      

      1.1            New
Definitions.  The following
definitions are hereby added to Section 1.1 of the Credit Agreement in the
appropriate alphabetical order:

      

      “Refinance Period”
shall mean the time period commencing on the First Amendment Effective Date and
ending on the earlier of (a) the date on which an amendment that permits the
renewal, refinancing or extension of the 4.00% Convertible Notes has been
approved by the Required Lenders and (b) the date on which the Borrower redeems
the 4.00% Convertible Notes in accordance with the terms of Section 6.10 of this
Agreement.

      

      “Snappon Judgments”
shall mean any legal judgments rendered under French law against Snappon SA, a
French subsidiary of the Borrower.

      

      “First Amendment Effective
Date” means May 1, 2009.

      

      1.2            Amendment
to Section 2.1(a).  The second sentence contained in Section
2.1(a) of the Credit Agreement is hereby amended and restated in its entirety as
follows:

      

      “For
purposes hereof, the aggregate principal amount available for Revolving Loan
borrowings hereunder shall be
EIGHTY MILLION
DOLLARS ($80,000,000)
(as such aggregate maximum amount may be reduced from time to time as
provided in Section 2.8, the “Revolving Committed
Amount”); provided that during
the Refinance Period only SIXTY
MILLION DOLLARS ($60,000,000) of the Revolving Committed Amount shall be
available to the Borrower for Revolving Loans and Letters of
Credit.”

      

      1.3            Amendment
to Section 7.1(g).  Section 7.1(g) of the Credit Agreement is
hereby amended and restated in its entirety as follows:

      

      (g)           Judgment
Default.  One or more judgments, orders, decrees or arbitration
awards shall be entered against the Credit Parties or any of their Subsidiaries
involving in the aggregate a liability (to the extent not paid when due or
covered by insurance) of (i) with respect to the Snappon Judgments, $10,000,000
or more and (ii) with respect to all other  judgments, orders, decrees
or arbitration awards, $5,000,000 or more, and all such judgments, orders,
decrees or arbitration awards identified in clauses (i) and (ii) above shall not
have been paid and satisfied, vacated, discharged, stayed or bonded pending
appeal within thirty (30) days from the entry thereof.

       

      
        
          
          

        

        
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      SECTION
2

      CONSENT

      

      2.1           Consent.  Notwithstanding
the provisions of the Credit Agreement to the contrary, the Required Lenders
hereby consent to any Bankruptcy Event and agree that any Bankruptcy Event shall
not violate the provisions of Section 7.1(f) of the Credit
Agreement.

      

      2.2           Effectiveness
of Consent.  This consent
shall be effective only to the extent specifically set forth herein and shall
not (a) be construed as a waiver of any breach or default nor as a waiver of any
breach or default of which the Lenders have not been informed by the Credit
Parties, (b) affect the right of the Lenders to demand compliance by the Credit
Parties with all terms and conditions of the Credit Agreement, except as
specifically consented to pursuant to the terms hereof, (c) be deemed a waiver
of any transaction or future action on the part of the Credit Parties requiring
the Lenders’ or the Required Lenders’ consent or approval under the Credit
Agreement, or (d) except as consented to and waived hereby, be deemed or
construed to be a waiver or release of, or a limitation upon, the Administrative
Agent’s or the Lenders’ exercise of any rights or remedies under the Credit
Agreement or any other Credit Document, whether arising as a consequence of any
Event of Default which may now exist or otherwise, all such rights and remedies
hereby being expressly reserved.

      

      

      SECTION
3

      CONDITIONS TO
EFFECTIVENESS

      

      3.1           Conditions
to Effectiveness.  This Amendment
shall be and become effective as of the date first above written upon
satisfaction of the following conditions (in form and substance reasonably
acceptable to the Administrative Agent) prior to the Amendment or simultaneously
therewith:

      

      (a)           Executed
Amendment.  Receipt by the Administrative Agent of a copy of
this Amendment duly executed by each of the Credit Parties and the
Administrative Agent, on behalf of the Required Lenders.

      

      (b)           Executed
Consents.  Receipt by the Administrative Agent of executed
consents from the Required Lenders (each a “Lender Consent”)
authorizing the Administrative Agent to enter into this Amendment on their
behalf.

      

      (c)           Fees and
Expenses.  The Borrower shall have paid in full (i) all fees
set forth in that certain Engagement Letter, dated April 20, 2009, among the
Borrower, Wachovia and WCM, (ii) to the Administrative Agent for the account of
each Lender that delivers a Lender Consent to the Administrative Agent by 5:00
p.m. (EDT) on April 30, 2009, an amendment fee in an amount equal to 0.05%
multiplied by such Lender’s Revolving Commitment plus outstanding Term
Loans plus the
outstanding amount of such Lender’s Credit-Linked Deposit and (iii) all
reasonable out-of-pocket fees and expenses of the Administrative Agent in
connection with the preparation, execution and delivery of this Amendment,
including without limitation, the reasonable fees and expenses of Moore &
Van Allen PLLC and any other outstanding fees and expenses thereof.

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

      

      (d)           Miscellaneous.  All
other documents and legal matters in connection with the transactions
contemplated by this Amendment shall be reasonably satisfactory in form and
substance to the Administrative Agent and its counsel.

      
 

      

      SECTION
4

      MISCELLANEOUS

      

      4.1           Representations
and Warranties.  Each of the Credit
Parties represents and warrants as follows as of the date hereof, after giving
effect to this Amendment:

      

      (a)           It
has taken all necessary action to authorize the execution, delivery and
performance of this Amendment.

      

      (b)           This
Amendment has been duly executed and delivered by such Person and constitutes
such Person’s valid and legally binding obligations, enforceable in accordance
with its terms, except as such enforceability may be subject to (i) bankruptcy,
insolvency, reorganization, fraudulent conveyance or transfer, moratorium or
similar laws affecting creditors’ rights generally and (ii) general principles
of equity (regardless of whether such enforceability is considered in a
proceeding at law or in equity).

      

      (c)           No
consent, approval, authorization or order of, or filing, registration or
qualification with, any Governmental Authority or third party is required in
connection with the execution, delivery or performance by such Person of this
Amendment.

      

      (d)           The
representations and warranties set forth in Article III of the Credit Agreement
(as amended by this Amendment) are true and correct as of the date hereof
(except for those which expressly relate to an earlier date).

      

      (e)           After
giving effect to this Amendment, no event has occurred and is continuing which
constitutes a Default or an Event of Default.

      

      (f)           The
Security Documents continue to create a valid security interest in, and Lien
upon, the Collateral, in favor of the Administrative Agent, for the benefit of
the Lenders, which security interests and Liens are perfected in accordance with
the terms of the Security Documents and prior to all Liens other than Permitted
Liens.

      

      (g)           The
Credit Party Obligations are not reduced or modified by this Amendment and are
not subject to any offsets, defenses or counterclaims.

       

      
        
          
          

        

        
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      4.2           Instrument
Pursuant to Credit Agreement.  This Amendment is
a Credit Document executed pursuant to the Credit Agreement and shall be
construed, administered and applied in accordance with the terms and provisions
of the Credit Agreement.

      

      4.3           Reaffirmation
of Credit Party Obligations.  Each Credit Party
hereby ratifies the Credit Agreement and acknowledges and reaffirms (a) that it
is bound by all terms of the Credit Agreement applicable to it and (b) that it
is responsible for the observance and full performance of its respective Credit
Party Obligations.

      

      4.4           Survival.  Except as
expressly modified and amended in this Amendment, all of the terms and
provisions and conditions of each of the Credit Documents shall remain
unchanged.

      

      4.5           Expenses.  The Borrower
agrees to pay all reasonable costs and expenses of the Administrative Agent in
connection with the preparation, execution and delivery of this Amendment,
including without limitation the reasonable expenses of the Administrative
Agent’s legal counsel.

      

      4.6           Further
Assurances.  The Credit
Parties agree to promptly take such action, upon the request of the
Administrative Agent, as is necessary to carry out the intent of this
Amendment.

      

      4.7           Entirety.  This Amendment
and the other Credit Documents embody the entire agreement among the parties
hereto and thereto and supersede all prior agreements and understandings, oral
or written, if any, relating to the subject matter hereof and
thereof.

      

      4.8           Counterparts.  This Amendment
may be executed in any number of counterparts, each of which when so executed
and delivered shall be an original, but all of which shall constitute one and
the same instrument.  Delivery of executed counterparts of this
Amendment by telecopy or other electronic means shall be effective as an
original and shall constitute a representation that an original shall be
delivered if requested by the Administrative Agent.

      

      4.9           No
Actions, Claims, Etc.  As of the date hereof, each of the
Credit Parties hereby acknowledges and confirms that it has no knowledge of any
actions, causes of action, claims, demands, damages and liabilities of whatever
kind or nature, in law or in equity, against the Administrative Agent, the
Lenders, or the Administrative Agent’s or the Lenders’ respective officers,
employees, representatives, agents, counsel or directors arising from any action
by such Persons, or failure of such Persons to act under this Credit Agreement
on or prior to the date hereof.

      

      4.10         General
Release.  In consideration
of the Administrative Agent entering into this Amendment, each Credit Party
hereby releases the Administrative Agent, the Lenders, and the Administrative
Agent’s and the Lenders’ respective officers, employees, representatives,
agents, counsel and directors from any and all actions, causes of action,
claims, demands, damages and liabilities of whatever kind or nature, in law or
in equity, now known or unknown, suspected or unsuspected to the extent that any
of the foregoing arises from any action or failure to act under the Credit
Agreement on or prior to the date hereof, except, with respect to any such
person being released hereby, any actions, causes of action, claims, demands,
damages and liabilities arising out of such person’s gross negligence, bad faith
or willful misconduct.

       

      
        
          
          

        

        
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      4.11         Waiver of
Jurisdiction; Service of Process; Waiver of Jury Trial.  The jurisdiction,
service of process and waiver of jury trial provisions set forth in Sections
9.13 and 9.16 of the Credit Agreement are hereby incorporated by reference,
mutatis
mutandis.

      

      4.12         Governing
Law.  THIS AGREEMENT
SHALL BE DEEMED TO BE A CONTRACT UNDER AND GOVERNED BY THE INTERNAL LAWS OF THE
STATE OF NEW YORK (INCLUDING SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK GENERAL
OBLIGATIONS LAW).

      

      4.13         Successors
and Assigns.  This Amendment shall be binding upon and inure to
the benefit of the Credit Parties, the Administrative Agent, the Lenders and
their respective successors and assigns.

      

      [Signature
Pages Follow]

       

      
        
          
          

        

        
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        GENCORP
INC.

        FIRST
AMENDMENT, CONSENT AND WAIVER TO CREDIT AGREEMENT

         

         

      

      The
parties hereto have duly executed this Amendment as of the date first above
written.

      

      

      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            	
                                                    BORROWER:

                                                  	
                                                    GENCORP
      INC.,

                                                  
	 
      	
                                                    an
      Ohio corporation

                                                  
	 
      	 
      
	 
      	 
      
	 
      	
                                                    By: /s/ William M. Lau

                                                  
	 
      	
                                                    Name:
      William M. Lau

                                                  
	 
      	
                                                    Title:  Vice
      President and Treasurer

                                                  
	 
      	 
      
	 
      	 
      
	 
      	 
      
	
                                                    GUARANTORS:

                                                  	
                                                    AEROJET-GENERAL
      CORPORATION,

                                                  
	 
      	
                                                    an
      Ohio corporation

                                                  
	 
      	 
      
	 
      	 
      
	 
      	
                                                    By: /s/ William M. Lau

                                                  
	 
      	
                                                    Name:
      William M. Lau

                                                  
	 
      	
                                                    Title:  Vice
      President and Treasurer

                                                  
	 
      	 
      
	 
      	 
      
	 
      	
                                                    AEROJET
      ORDNANCE TENNESSEE, INC.,

                                                  
	 
      	
                                                    a
      Tennessee corporation

                                                  
	 
      	 
      
	 
      	 
      
	 
      	
                                                    By: /s/ Brian E. Sweeney

                                                  
	 
      	
                                                    Name:
      Brian E. Sweeney

                                                  
	 
      	
                                                    Title:  Vice
      President and
Secretary

                                                  

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      

      
        
          
            
              
                
                  
                    
                      
                        
                          
                            	
                                    ADMINISTRATIVE

                                  	 
      
	
                                     AGENT:

                                  	
                                    WACHOVIA BANK, NATIONAL
      ASSOCIATION,

                                  
	 
      	
                                    as
      Administrative Agent on behalf of the Lenders

                                  
	 
      	 
      
	 
      	 
      
	 
      	
                                    By:/s/ Scott Santa Cruz

                                  
	 
      	
                                    Name:
      Scott Santa Cruz

                                  
	 
      	
                                    Title:  Directorc57515_ex10-1.htm -- Converted by SEC Publisher, created by BCL Technologies Inc., for SEC Filing

Exhibit 10.1

Execution Version

AMENDMENT, dated as of April 30, 2009 (this “Amendment”), by and between Elite Pharmaceuticals, Inc., a Delaware corporation (the “Company”), on the one hand, and Epic Pharma, LLC, a Delaware limited liability company (the “Parent”), and Epic Investments, LLC, a
Delaware limited liability company (including its successors and assigns, the “Purchaser”), on the other hand, relating to a certain STRATEGIC ALLIANCE AGREEMENT, dated as of March
18, 2009 (the “Alliance Agreement”; capitalized terms used herein and not otherwise defined have the meaning assigned to such terms in the Alliance Agreement). 

 

          WHEREAS, the parties hereto have agreed to amend and waive certain provisions of the Alliance Agreement on the terms and subject to the conditions contained herein. 

          NOW, THEREFORE, IN CONSIDERATION of the mutual covenants contained herein, and for other good and valuable consideration the receipt and adequacy of which are hereby acknowledged, the parties hereto
agree as follows: 

          1.     Amendments. The Alliance Agreement is hereby amended as follows:

          (a)    Article I is amended by: 

     (1)     amending the definition of Initial Closing Date to read as follows: “Initial Closing
Date” means May 27, 2009 or such other date as the Parties may mutually agree upon in writing;

     (2)     amending the definition of Ten Percent Stockholders to read as follows: “Ten Percent Stockholders” means the holders of ten
percent (10%) or more of the issued and outstanding shares of Common Stock on the Initial Closing Date, after giving effect to (a) the issuance of the Initial Closing Shares pursuant to this Agreement and (b) the conversion of the Outstanding
Preferred Stock into Common Stock in accordance with the Conversion Notices. 

     (3)     adding a definition for the term “Deposit” which shall read as follows: “Deposit” shall have the meaning assigned to
such term in Section 2.1A. ” 

          (b)    The following Section 2.1A is hereby inserted immediately following Section 2.1 and before Section 2.2: 

2.1A     Good Faith Deposit. On or before April 30, 2009, Parent shall deliver the sum of Two Hundred Fifty Thousand Dollars ($250,000) to the Company as a good faith
deposit (the “Deposit”) to be applied against the amount payable under Section 2.1 above. Upon receipt thereof, the Company shall be free to use such funds in accordance with
Section 4.7 herein, provided, however, in the event Parent shall terminate this Agreement pursuant to clause (x) of Section 6.1 below

as the result of the conditions precedent set forth in Section 2.11(b) or 2.12(a) not being satisfied, the Company shall promptly refund such funds to Parent. 

          (c)    Section 2.2(a)(viii) is amended by deleting the words “the Secretary of State of Delaware” and inserting in their stead the words “said officer as being true, correct and complete
copies thereof” 

          (d)    Section 2.2(b) is amended by (1) adding the following to clause (ii) therein: “less the Deposit”, and (2) deleting clauses (B) and (C) from clause (iii) therein. 

          (e)    Section 3.1(u) of the Alliance Agreement is hereby deleted in its entirety and replaced with the following text: 

Listing and Maintenance Requirements.  The Company’s Common Stock is registered pursuant to Section 12(b) or 12(g) of the Exchange Act, and the Company has taken no action designed to, or
which to its knowledge is likely to have the effect of, terminating the registration of such class of Common Stock under the Exchange Act nor has the Company received any notification that the Commission is contemplating terminating such
registration. 

          (f)     The following Section 3.1(pp) is hereby added to the Alliance Agreement: 

(pp)    Additional Initial Closing Date Representations. As of the Initial Closing Date, the Company makes the following representations and warranties: 

(1)     Set forth on Schedule 3.1(pp)(1) of the Company Disclosure Schedule is a true, correct and complete list of the holders of Outstanding Preferred Stock who have elected to convert all or a portion of their shares to Common
Stock in accordance with Section 2.9 hereof, setting forth the name of each such holder, the number, class and series of shares of Outstanding Preferred Stock so converted and the number of shares of Common Stock into which such shares have been
converted (each such holder, a “Converting Holder”). The Company has delivered to Parent true, correct and complete copies of all Conversion Notices delivered by each Converting Holder. Any and all representations, warranties and other
disclosure made or furnished by or on behalf of the Company to the Converting Holders and to each nonconverting holder of Outstanding Preferred Stock Purchaser regarding the Company, its business and the transactions contemplated hereby, was, when
made, true and correct in all material respects and did not contain any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements made therein, in light of the circumstances under which they
were made, not misleading. 

(2)     Set forth on Schedule 3.1(pp)(2) of the Company Disclosure Schedule is a true, correct and complete list of the holders of Outstanding Preferred Stock who have consented to the transactions contemplated by this Agreement,
including the issuance of the Series E Preferred Stock hereunder, setting forth the name of each such holder and the number, class and series of shares of Outstanding Preferred Stock held by such holder (each such holder, a “Consenting
Holder”). The

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Company has delivered to Parent true, correct and complete copies of all consents delivered by each Consenting Holder. Any and all representations, warranties and other disclosure made or furnished by or on behalf of the Company
to the Consenting Holders and to each nonconsenting holder of Outstanding Preferred Stock Purchaser regarding the Company, its business and the transactions contemplated hereby, was, when made, true and correct in all material respects and did not
contain any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements made therein, in light of the circumstances under which they were made, not misleading. 

(3)     Any and all actions and steps taken by the Company in connection with the conversion of the shares of Outstanding Preferred Stock by the Converting Holders and the granting of consent by the Consenting Holders complied in all
material respects with any and all applicable laws, rules and regulations. 

(4)     Set forth on Schedule 3.1(pp)(4) of the Company Disclosure Schedule is a true, correct and complete list of all Ten Percent Stockholders and the number of shares of Common Stock held by each such holder. 

(5)     Set forth on Schedule 3.1(pp)(5) of the Company Disclosure Schedule is a pro forma capitalization table setting forth, in all material respects, after giving effect to the conversion of shares of Outstanding Preferred Stock by
the Converting Holders, the number of shares of outstanding Common Stock, the number of shares of Outstanding Preferred Stock, the number of shares of Common Stock to be issued as dividends to the holders of the Outstanding Preferred Stock (assuming
a price per share of $0.05) for each of the next five years, the number of shares of Common Stock to be issued to the holders of the Series D Preferred Stock upon the redemption thereof (assuming a price per share of $0.05) and the
corresponding adjustments to the conversion price of the Series E Preferred Stock pursuant to the Certificate of Designation.” 

          (g)    Section 4.10(a) is amended by deleting the date “June 30, 2009” which appears therein and inserting “July 31, 2009” in its stead. 

          (h)    Section 4.14(a)(iii) of the Alliance Agreement is hereby deleted in its entirety and replaced with the following text:

declare, set aside, make or pay any dividend or other distribution (whether payable in cash, stock, property or a combination thereof) with respect to any of its capital stock, other than dividends payable on outstanding shares of
Existing Preferred Stock and Series D Preferred Stock in accordance with the terms thereof as in effect on the date hereof; 

          (i)     The following Section 4.18 is added to the Alliance Agreement: 

4.18     Delisting. Within thirty (30) Business Days following the Initial Closing Date, the Company shall effect the delisting of the Common Stock from the American Stock
Exchange (now known as NYSE Alternext U.S) and shall cause

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the Common stock to be traded on such Trading Market as shall be required under any agreement, instrument or security to which the Company may be a party or may be bound.

          (j)     Section 6.1 is amended by deleting the date “April 30, 2009” which appears therein and inserting “June 1, 2009” in its stead. 

          (k)    The resolution set forth in Article First of the form of Certificate of Amendment of Certificate of Incorporation attached as Exhibit A
to the Alliance Agreement is hereby deleted in its entirety and replaced with the following text: 

RESOLVED, that the Board of Directors deems it in the best interest of the Corporation to amend the Certificate of Incorporation of the Corporation, as amended (the
“Certificate of Incorporation”), by deleting Article Fourth of the Certificate of Incorporation in its entirety and replacing it with the following: 

FOURTH:  The total number of shares of all classes of stock which the Corporation shall have authority to issue is Three Hundred Sixty Million (360,000,000) shares, consisting of Four Million Four Hundred Eighty-Three Thousand
Four Hundred Forty-Two (4,483,442) shares of Preferred Stock, par value $0.01 per share, and Three Hundred Fifty-Five Million Five Hundred Sixteen Thousand Five Hundred Fifty-Eight (355,516,558) shares of Common Stock, par value of $0.001
per share.

Subject to the provisions of Section 151 of the General Corporation Law, the Board of Directors or any authorized committee thereof of the Corporation is authorized to issue the shares of Preferred Stock in one or more series and
determine the number of shares constituting each such series, the voting powers of shares of each such series and the designations, preferences and relative, participating, optional or other special rights, and qualifications, limitations or
restrictions as set forth in a resolution or resolutions of the Board of Directors. 

          (l)     Section 3(a) of the form of Certificate of Designation attached as Exhibit B to the Alliance Agreement is hereby deleted in its entirety
and replaced with the following text: 

So long as any Series E Preferred Stock shall remain outstanding, the Corporation shall not declare, pay or set aside any dividends on shares of any other class or series of capital stock of the Corporation (other than dividends
payable pursuant to the Series B Certificate, the Series C Certificate and the Series D Certificate) unless the Holder shall first receive, or simultaneously receive, a dividend on each outstanding share of Series E Preferred Stock in an amount
equal to the dividend the Holder would have been entitled to receive upon conversion, in full, of one share of Series E Preferred Stock immediately prior to the record date for determination of holders entitled to receive such dividend. 

          (m)   Section 4(b)(iii) of the form of Certificate of Designation attached as Exhibit B to the Alliance Agreement is hereby deleted in its
entirety and replaced with the following text: 

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declare, set aside, make or pay any dividend or other distribution (whether payable in cash, stock, property or a combination thereof) with respect to any of its capital stock, other than dividends payable on outstanding shares of
Existing Preferred Stock in accordance with the terms thereof as in effect on the date hereof; 

          2.     Waiver. The Parent and the Purchaser each hereby waive the condition precedents set forth in Section 2.12(a)(i), (ii) and (iii) of the
Alliance Agreement and acknowledge that the Company complied with its obligations under Section 2.9(a) of the Alliance Agreement. In addition, the Parent and the Purchaser each hereby acknowledge receipt of the Supplemental Company Schedules, which
such Supplemental Schedules shall have been delivered to the Parent and the Purchaser by the Company on or before the date of this Amendment in satisfaction of the delivery requirement contained in Section 2.2(a)(ix) . 

          3.     Effect of Amendments.  Except as expressly amended herein, the terms of the Alliance Agreement are incorporated herein by reference as if
fully set out and shall remain in full force and effect in accordance with their terms. 

          4.     Severability. If any provision or portion of this Amendment shall be determined to be invalid or unenforceable for any reason, in whole or
in part, the remaining provisions of this Amendment shall be unaffected thereby and shall remain in full force and effect to the fullest extent permitted by law. 

          5.     Counterparts; Delivery by Facsimile. This Amendment may be executed in any number of counterparts with the same effect as if all parties
hereto had signed the same document.  All counterparts shall be construed together and shall constitute one Amendment. This Amendment and any amendments hereto, to the extent signed and delivered by means of a facsimile machine or email, shall be
treated in all manner and respects as an original agreement or instrument and shall be considered to have the same binding legal effect as if it were the original signed version thereof delivered in person. No party hereto or to any such agreement
or instrument shall raise the use of a facsimile machine or email to deliver a signature or the fact that any signature or agreement or instrument was transmitted or communicated through the use of a facsimile machine or email as a defense to the
formation of a contract and each such party forever waives any such defense. 

          6.     Governing Law; Consent to Jurisdiction. All questions concerning the construction, validity, enforcement and interpretation of this
Amendment shall be governed by and construed and enforced in accordance with the internal laws of the State of Jersey, without regard to the principles of conflicts of law thereof.  Each party hereby irrevocably waives personal service of process
and consents to process being served in any such suit, action or proceeding by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under
this Amendment and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any other manner permitted by law.
THE PARTIES HEREBY WAIVE ALL RIGHTS TO A TRIAL BY JURY. If either party shall commence an action or proceeding to enforce any provisions of this Amendment, then the prevailing party in such
action or proceeding shall be

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reimbursed by the other party for its reasonable attorneys’ fees and other costs and expenses incurred with the investigation, preparation and prosecution of such action or proceeding.

          8.     Headings. The headings contained in this Amendment are for reference purposes only and shall not be deemed to be part of the Amendment or
to affect the meaning or interpretation of this Amendment.

 

(Remainder of Page Intentionally Left Blank; Signature Page Follows)

 

 

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          IN WITNESS WHEREOF, this Amendment is executed by the parties hereto as of the day and year first above written. 

					
	 	
      ELITE PHARMACEUTICALS, INC.	
	 	 	 	 		 
	 	By:	 	
 /s/ Chris Dick		 
	 	 	 	 Name: Chris Dick		 
	 	 	 	 Title:  Chief Operating Officer and Acting Chief		 
	 	 	 	           Executive Officer		 
	 	 	 	 		 
	 	 	 	 		 
	 	
      EPIC PHARMA, LLC	
	 	 	 	 		 
	 	By:	 	
 /s/ Ashok G. Nigalaye		 
	 	 	 	 Name:  Ashok G. Nigalaye, Ph.D.		 
	 	 	 	 Title:  President and Chief Executive Officer		 
	 	 	 	 		 
	 	
      EPIC INVESTMENTS, LLC	
	 	 	 	 		 
	 	By:	 	
 EPIC PHARMA, LLC, its Managing Member		 
	 	 	 	 		 
	 	By:	 	
 /s/ Ashok G. Nigalaye		 
	 	 	 	 Name:  Ashok G. Nigalaye, Ph.D.		 
	 	 	 	 Title:  President and Chief Executive Officer

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