Document:

Exhibit 10.50

May 15, 2017

 

ASSET PURCHASE AGREEMENT

 

ASSET PURCHASE AGREEMENT
(“Agreement”), dated May 15, 2017 (the “Effective Date”), between Mikah Pharma LLC
a limited liability company organized under the laws of the State of Delaware (
“Seller”) and Elite Laboratories, Inc., a corporation incorporated under the laws of the State
of Delaware (“Buyer”). Buyer and Seller are each “Party” to this Agreement and together constitute
the “Parties”.

 

Background

 

Seller owns ANDA(s) that
it acquired from Actavis, Inc. that was operating under a Consent Decree, a copy of which was provided to Buyer, which may subject
the ANDA(s) (as defined below) to additional scrutiny before FDA permits the Products (as defined below) to be manufactured elsewhere.
Nevertheless, on the terms and conditions set forth in this Agreement and the Consent Decree, Buyer wishes to purchase from Seller
and Seller wishes to sell to Buyer, the ANDA(s).

 

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

 

Article
1

 

DEFINITIONS

 

		Section 1.1	Definitions

 

All terms not defined below
are defined elsewhere in this Agreement.

 

“Affiliate”
means any Person that directly or indirectly Controls, is Controlled by or is under common Control with another Person. A Person
will be deemed to “Control” another Person if it has the power to direct or cause the direction of the other
Person, whether through ownership of securities, by contract or otherwise.

 

“Agency”
means any governmental regulatory authority or authorities in the United States responsible for granting approval(s), clearance(s),
qualification(s), license(s) or permit(s) for any aspect of the research, development, manufacture, marketing, distribution or
sale of a Product. The term “Agency” includes, but is not limited to, the FDA and the United States Drug Enforcement
Administration.

 

“ANDA(s)”
means Abbreviated New Drug Applications listed in Schedule 1 and all amendments thereto, that have to-date been filed with
the FDA seeking authorization and approval to manufacture, package, ship and sell, as more fully defined in 21 C.F.R. Part 314,
the Products.

 

“ANDA(s) Technology
and Scientific Materials” means any technological, scientific, chemical or biological materials, trade secrets, know-how,
Intellectual Property, techniques, data, inventions, practices, methods and all other confidential and proprietary technical, research,
development and other applicable business information (whether patented, patentable or otherwise) related to the manufacture, validation,
packaging, release testing, stability and shelf life of the Product, including all Product formulations, in existence and in the
possession of Seller as of the Closing Date.

 

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“Assumed Liabilities”
has the meaning set forth in Section 2.3.

 

“Bill of Sale”
means a bill of sale to be delivered by Seller to Buyer effective on the Closing Date, substantially in the form of Exhibit
A.

 

“Business Day”
means any day other than a Saturday, Sunday or other day on which banks in New York, New York are permitted or required to close
by law or regulation.

 

“Buyer”
has the meaning set forth in the preamble.

 

“Buyer Indemnified
Parties” has the meaning set forth in Section 8.2.

 

Calendar Quarter”
means the three month period ending on the last day of each of March, June, September and December.

 

“Closing”
and “Closing Date” have the meanings given such terms in Section 3.1.

 

“Development”
means all preclinical and clinical drug development activities, including test method development and stability testing, toxicology,
bioequivalency, formulation, process development, manufacturing scale-up, development-stage manufacturing, quality assurance/quality
control development, statistical analysis and report writing, conducting clinical trials for the purpose of obtaining any and all
approvals, licenses, registrations or authorizations from any Agency necessary for the manufacture, use, storage, import, export,
transport, promotion, marketing and sale of the Products, Product approval and registration, and regulatory affairs related to
the foregoing. “Develop” means to engage in Development.

 

“Effective Date”
has the meaning set forth in the preamble.

 

“Encumbrance”
means any mortgage, charge, lien, security interest, easement, right of way, pledge or encumbrance of any nature whatsoever.

 

“Excluded Liabilities”
has the meaning set forth in Section 2.3.

 

“FDA”
means the United States Food and Drug Administration.

 

“Governmental
Entity” means any court, administrative agency, department or commission or other governmental authority or instrumentality,
whether U.S. or non-U.S.

 

“Governmental
Rule” means any law, judgment, order, decree, statute, ordinance, rule or regulation issued or promulgated by any Governmental
Entity or Agency.

 

“Intellectual
Property” has the meaning set forth in Section 4.7.

 

“Liabilities”
means any and all debts, liabilities and obligations, whether accrued or fixed, absolute or contingent, matured or unmatured, or
determined or determinable, including those arising under any law, action or governmental order and those arising under any contract,
agreement, arrangement, commitment or undertaking, or otherwise.

 

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“Losses”
means, collectively, any and all damages, losses, taxes, Liabilities, claims, judgments, penalties, costs and expenses (including
reasonable legal fees and expenses).

 

“Material Adverse
Effect” means an effect which is material and adverse to the Purchased Assets taken as a whole, but does not include:
(i) any adverse effect due to changes in conditions generally affecting (A) the healthcare industry or (B) the United States economy
as whole, (ii) any change or adverse effect caused by, or relating to, the announcement of this Agreement and the transactions
contemplated by this Agreement or (iii) any adverse effect due to legal or regulatory changes.

 

“Mutual Confidential
Disclosure Agreement” means the Mutual Confidential Disclosure Agreement entered into by the parties dated May 18, 2010.

 

“Person”
means any individual, corporation, partnership, limited liability company, joint venture, trust, business association, organization,
Governmental Entity or other entity.

 

“Product(s)”
means the pharmaceutical or products now or hereafter described in the ANDA(s).

 

“Purchase Note”
has the meaning set forth in Section 2.1.

 

“Purchase Price”
has the meaning set forth in Section 2.1.

 

“Purchased Assets”
has the meaning set forth in Section 2.2.

 

“Security Agreement”
has the meaning set forth in Section 2.1.

 

“Territory”
means the United States and its territories, possessions, and commonwealths, including Puerto Rico.

 

“United States”
or “U.S.” or “U.S.A.” means the United States of America.

 

		Section 1.2	Interpretation

 

When used in this Agreement
the words “include”, “includes” and “including” will be deemed to be followed by the words
“without limitation.” Any terms defined in the singular will have a comparable meaning when used in the plural, and
vice-versa.

 

		Section 1.3	Currency

 

All currency amounts referred
to in this Agreement are in United States Dollars, unless otherwise specified.

 

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Article
2

 

SALE AND PURCHASE OF
ASSETS

 

		Section 2.1	Purchase and Sale

 

Upon the terms and subject
to the conditions of this Agreement, on the Closing Date, upon payment of the $1,200,000 purchase price (the “Purchase
Price”) in the form of a Senior Secured Promissory Note (the “Purchase Note”), a copy of the form
of which is attached hereto as Exhibit B, payment and performance of which by Buyer is secured in accordance with an ANDA(s)
Security Agreement in the form attached hereto as Exhibit C (the “Security Agreement”), and by this reference
incorporated herein, Seller will sell, assign, transfer, convey and deliver to Buyer, and Buyer will purchase, acquire and accept,
all right, title and interest, within the Territory, of Seller in, to and under the Purchased Assets.

 

		Section 2.2	Purchased Assets

 

The term “Purchased
Assets” means the following properties, assets and rights of whatever kind and nature, tangible or intangible, of Seller
existing on the Closing Date that relate solely and exclusively to the ANDA(s) and any testing, data, studies, and formulations
created in connection therewith including but not limited to: (i) the ANDA(s),
(ii) any correspondence with the FDA in Seller’s files with respect to the ANDA(s), (iii) the right of reference to
the Drug Master Files, as set forth in the ANDA(s); (iv) the ANDA(s) Technology and Scientific Materials; (v) all rights to manufacture,
sell or otherwise exploit any products resulting therefrom including all rights to revenues generated therefrom; and (vi) a royalty
free limited license to use any ANDA(s) Technology and Scientific Materials which is common to the Product and any other product
of Seller, but only for Buyer’s use in connection with the manufacture of any Product.

 

		Section 2.3	Assumption of Certain Liabilities and Obligations

 

From and after the Closing,
Buyer will assume, be responsible for and pay, perform and discharge when due only those Liabilities in connection with the Purchased
Assets, the use thereof and the later sale of any Product by Buyer arising from and after the Closing Date and only with respect
to events, conditions, actions or circumstances first arising after the Closing Date, including but not limited to (i) Liabilities
arising from any patent or trademark infringement claim or lawsuit brought by any Third Party, (ii) any product liability claim,
and (iii) Liabilities arising from FDA or any other Governmental Entity action or notification after the Closing Date (collectively,
the “Assumed Liabilities”). Notwithstanding the foregoing, Buyer will not assume or be liable for any Liabilities
arising in connection with the Product and the Purchased Assets manufactured prior to the Closing Date, including Liabilities resulting
from Third Party agreements of Seller or its Affiliates and Third Party claims arising out of acts or omissions of Seller prior
to Closing Date (collectively, the “Excluded Liabilities”).

 

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Article
3

 

CLOSING

 

		Section 3.1	Closing Date

 

The closing of the sale
and transfer of the Purchased Assets (the “Closing”) will take place at the offices of either Buyer or Seller
or by fax, electronic delivery or mail, or other place as mutually agreed to by the Parties. The Closing shall take place on the
Effective Date or first Business Day following the execution of this Agreement; provided, however, all of the conditions
to each Party’s obligations under this Article have been satisfied or waived, or at such other time and date as will be mutually
agreed to by the Parties hereto (such date of the Closing being hereinafter referred to as the “Closing Date”).

 

		Section 3.2	Intentionally left blank.

 

		Section 3.3	Conditions to Obligations of Buyer

 

The obligation of Buyer
to purchase the Purchased Assets from Seller is subject to the satisfaction on and as of the Closing of each of the following conditions,
unless waived by Buyer:

 

(a)     Representations.
The representations and warranties of Seller set forth in this Agreement will be true and correct as of the Closing as though made
on and as of the Closing, except to the extent such representations and warranties relate to an earlier date (in which case such
representation and warranties will be true and correct as of such earlier date).

 

(b)     Performance of Obligations
of Seller. Seller will have performed or complied in all material respects with all obligations, conditions and covenants
required to be performed by it under this Agreement at or prior to the Closing.

 

(c)     Closing Deliveries.
Seller will have executed and delivered to Buyer, dated as of the Closing Date, the (i) Bill of Sale, and (ii) a “Transfer
of Ownership” letter to the FDA, relating to each of the ANDA(s), as prescribed in 21 CFR 314.72, and shall deliver to Buyer
a certificate of the Secretary of State or other applicable Governmental Authority certifying the good standing of Seller in its
jurisdiction of organization as of a date within seven days of the Closing Date.

 

(d)     ANDA(s). As further
described in Section 6.2, Seller will deliver the ANDA(s) to Buyer.

 

(e)     No Government Rule
enacted, entered, promulgated, enforced or issued by any Governmental Entity, Agency, or other legal restraint or prohibition shall
be pending, threatened or in effect, which would (i) prevent consummation of any of the transactions contemplated by this Agreement,
(ii) cause any of the transactions contemplated by this Agreement to be rescinded following consummation or (iii) affect adversely
the right of Purchaser to own or exploit the Purchased Assets.

 

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		Section 3.4	Conditions to the Obligations of Seller

 

The obligations of Seller
to sell, assign, convey, and deliver the Purchased Assets, or to cause the Purchased Assets to be sold, assigned, conveyed or delivered,
as applicable, to Buyer are subject to the satisfaction on and as of the Closing of each of the following conditions, unless waived
by the Seller:

 

(a)     Representations
and Warranties. The representations and warranties of Buyer set forth in this Agreement will be true and correct in all material
respects as of the Closing as though made on and as of the Closing, except: (i) to the extent such representations and warranties
expressly relate to an earlier date (in which case such representations and warranties will be true and correct as of such earlier
date) and (ii) for breaches of representations and warranties as to matters that individually or in the aggregate would not materially
interfere with Buyer’s performance of its obligations hereunder; and

 

(b)     Closing Deliveries.
Buyer shall have delivered to Seller, (i) an original executed copy of the Purchase Note and Security Agreement, and (ii)
a certificate of the Secretary of State or other applicable Governmental Authority certifying the good standing of Buyer in its
jurisdiction of organization as of a date within seven days of the Closing Date.

 

Article
4

 

REPRESENTATIONS AND WARRANTIES
OF SELLER

 

As
of each of the Effective Date and Closing Date, Seller hereby represents and warrants to Buyer as follows: 

 

		Section 4.1	Seller Organization; Good Standing; Business

 

Seller is a limited liability
company, duly organized, validity existing and in good standing under the laws of the State of Delaware. Seller has the requisite
power and authority to own the Purchased Assets and to carry on its business as currently conducted. Seller is duly qualified to
conduct business as a foreign limited liability company and is in good standing in each jurisdiction where the nature of the business
conducted by it makes such qualification necessary, except where the failure to do so qualify or be in good standing would not
have a Material Adverse Effect. Seller, in the ordinary course of its business, regularly acquires and sells ANDAs.

 

		Section 4.2	Authority; Execution and Delivery

 

Seller has the requisite
limited liability company power and authority to enter into this Agreement and to consummate the transaction contemplated. The
execution and delivery of this Agreement by Seller and the consummation of the transactions contemplated have been validly authorized.
This Agreement has been executed and delivered by Seller and, assuming the due authorization, execution and delivery of this Agreement
by Buyer, will constitute the legal and binding obligation of Seller, enforceable against it in accordance with its terms, subject
to applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent transfer and other similar laws affecting creditors’
rights generally from time to time in effect and to general principles of equity (including concepts of materiality, reasonableness,
good faith and fair dealing) regardless of whether considered in a proceeding in equity or at law.

 

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		Section 4.3	Consents; No Violation, Etc.

 

The execution and delivery
of this Agreement do not, and the consummation of the transactions contemplated hereby and the compliance with the terms hereof
will not: (i) violate any Governmental Rule applicable to Seller, (ii) conflict with any provision of the certificate of incorporation
or by-laws or certificate of formation or operating agreement (or similar organizational document) of Seller, (iii) result in a
violation or breach of, or constitute (with or without due notice or lapse of time or both) a default (or give rise to any right
of termination, cancellation or acceleration) under, or result in the creation of any Encumbrance upon any of the Purchased Assets
(other than those imposed by the Security Agreement) under any of the terms, conditions or provisions of, any contract, agreement,
plan, understanding, undertaking, commitment or arrangement, whether written or oral, any note, bond, mortgage, indenture, lease,
license, deed of trust, loan, or other agreement, instrument or obligation to which Seller is a party or by which Seller or any
of the Purchased Assets may be bound, (iv) to the knowledge of Seller, violate any rights of any non-party, or (v) require any
approval, authorization, consent, license, exemption, filing or registration with any court, arbitrator or Governmental Entity,
except, with respect to the foregoing clauses (i) and (iii), for such violations or conflicts which would not have a Material Adverse
Effect or materially interfere with Seller’s performance of its obligations hereunder or, with respect to the foregoing clause
(v), for such approvals, authorizations, consents, licenses, exemptions, filings or registrations which have been obtained or made
or which, if not obtained or made, would not have a Material Adverse Effect or interfere with Seller’s performance of its
obligations hereunder.

 

		Section 4.4	Litigation

 

To the knowledge of Seller,
there are no claims, suits, actions or other proceedings pending or threatened in writing against Seller at law or in equity before
or by any Governmental Entity or Agency, including but not limited to federal, state, municipal or other governmental department,
commission, board bureau, agency or instrumentality, domestic or foreign, which may in any way materially adversely affect the
performance of Seller’s obligations under this Agreement or the transactions contemplated hereby. There are no outstanding
claims, suits, actions, judgments, orders, injunctions, decrees or awards against Seller in connection with the Purchased Assets,
this Agreement or the transactions contemplated hereby that have not been satisfied in all material respects.

 

		Section 4.5	Title to Purchased Assets; AS IS

 

Seller has good and valid
title to all of the Purchased Assets, as the case may be, free and clear of all Encumbrances. Buyer agrees that it is purchasing
and will take possession of the Purchased Assets in their AS IS condition and that Buyer has been given the opportunity
to conduct such investigations and inspections of the Purchased Assets as it deems necessary or appropriate.

 

		Section 4.6	Purchased Assets AS IS

 

SELLER DOES NOT MAKE
ANY REPRESENTATIONS OR WARRANTIES THAT THE FDA WILL APPROVE ANY FILINGS FOR OR RELATED TO THE ANDA(s) TRANSFERRED HEREUNDER OR
THAT BUYER WILL EVER BE ABLE TO PRODUCE A COMMERICALLY SALEABLE PRODUCT AS TO THE ANDA(s). SELLER FURTHER MAKES NO REPRESENTATIONS
AS TO THE ADEQUACY OR COMPLETENESS OF THE FORMULATION OR OTHER DATA UNDERLYING THE ANDA(s) AND FURTHER MAKES NO REPRESENTATION
AS TO THE REGULATORY SUFFICIENCY OF THE ANDA(s).

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		Section 4.7	Intellectual Property.

 

Seller
owns or possesses adequate and enforceable licenses or other rights to use all “Intellectual Property” as defined below,
is not in default under any such licensing or similar agreement and has not received any notice or has knowledge of conflict with
or infringement (or alleged infringement) of any rights of others. Seller has no notice or knowledge that any of the Intellectual
Property is being infringed upon or appropriated by any third party. The use of any Intellectual Property and other technical or
proprietary data related to the Purchased Assets has not required and does not require the payment of any royalty or similar payment
to any person, firm or corporation, and, immediately following the Closing, Buyer will have good and marketable title thereto,
free and clear of any Encumbrances. “Intellectual Property” means all inventions, improvements, patents, utility
models, designs, trade names, trade dress, trade secrets, trademarks, service marks, copyrights, know-how and other proprietary
rights (including all grants, registrations or applications therefor), and all goodwill associated therewith, relating to the Purchased
Assets or necessary for exploitation of the Purchased Assets, including, without limitation, any trade name, trademark or service
mark.

 

		Section 4.8	Full Disclosure

 

No
representation or warranty of Seller in this Agreement (including the Schedules attached hereto) and no statement of Seller contained
in any document or certificate contemplated by this Agreement, considered as a whole with all other representations, warranties
and statements, contains or will contain any untrue statement of material fact or omits or will omit to state any material fact
necessary, in light of the circumstances under which it was made, in order to make the statements herein or therein not misleading.

 

		Section 4.9	Exclusive Representations and Warranties

 

Other than the representations
and warranties set forth in this Article 4, Seller is not making any other representations or warranties, express or implied,
with respect to the Purchased Assets.

 

Article
5

 

REPRESENTATIONS OF
BUYER

 

As of each of the Effective
Date and Closing Date, Buyer hereby represents and warrants to Seller as follows:

 

		Section 5.1	Buyer’s Organization; Good Standing

 

Buyer is a corporation
duly organized, validly existing and in good standing under the laws of the State of Delaware. Buyer is not in arrears of any taxes
and is not under investigation by any Governmental Entity. Buyer has requisite corporate power and authority to carry on its business
as it is currently being conducted. Buyer is qualified to conduct business as a foreign corporation and is in good standing in
every jurisdiction where the nature of the business conducted by it makes such qualification necessary, except where the failure
to so qualify or be in good standing would not prevent or materially delay the consummation of the transactions contemplated hereby.

 

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		Section 5.2	Authority; Execution and Delivery

 

Buyer has the corporate
power and authority to enter into this Agreement and to consummate the transactions contemplated hereby. The execution and delivery
of this Agreement by Buyer and the consummation of the transactions contemplated hereby have been authorized. This Agreement has
been executed and delivered by Buyer and, assuming the due authorization, execution and delivery of this Agreement by Seller, constitutes
the legal and binding obligation of Buyer, enforceable against Buyer in accordance with its terms, subject to applicable bankruptcy,
insolvency, reorganization, moratorium, fraudulent transfer and other similar laws affecting creditors’ rights generally
from time to time in effect and to general principles of equity (including concepts of materiality, reasonableness, good faith
and fair dealing regardless) of whether considered in a proceeding in equity or at law.

 

		Section 5.3	Consents; Notices; No Violations, Etc.

 

The execution and delivery
of this Agreement do not, and the consummation of the transactions contemplated hereby and the compliance with the terms hereof
will not: (i) violate any Governmental Rule, (ii) conflict with any provision of the certificate of incorporation or by-laws of
Buyer, (iii) result in a violation or breach of, or constitute (with or without due notice or lapse of time or both) a default
(or give rise to any right of termination, cancellation or acceleration) under, or result in the creation of any Encumbrance upon
any of the Purchased Assets (other than those imposed by the Security Agreement) under any of the terms, conditions or provisions
of, any contract, agreement, plan, understanding, undertaking, commitment or arrangement, whether written or oral, any, note, bond,
mortgage, indenture, lease, license, deed of trust, loan, or other agreement, instrument or obligation to which Buyer is a party
or (iv) require any approval, authorization, consent, license, exemption, filing or registration with any court, arbitrator or
Governmental Entity, except with respect to the foregoing clauses (i) and (iii), for such violations or conflicts which would not
materially interfere with Buyer’s performance of its obligations hereunder or, with respect to the foregoing clause (iv),
for such approvals, authorizations, consents, licenses, exemptions, filings or registrations which have been obtained or made or
which, if not obtained or made, would not materially interfere with Buyer’s performance of its obligations hereunder.

 

		Section 5.4	Litigation

 

As of the date hereof,
there is no suit, claim, action, investigation or proceeding pending or, to the knowledge of Buyer, threatened against Buyer or
any of its Affiliates which if adversely determined would delay the ability of Buyer to perform any of its obligations hereunder.

 

		Section 5.5	Status of ANDA(s)

 

Buyer has reviewed each
of the ANDA(s), recognizes that they may be subject to additional scrutiny by the FDA as a result of the Consent Decree, and recognizes
and assumes all risks and costs directly or indirectly associated with the ANDA(s), obtaining FDA approval to transfer the manufacturing
site for the ANDA(s) and the Products.

 

		Section 5.6	Assumption of Regulatory Commitments

 

From and after the Closing
Date, Buyer will assume control of and responsibility for all costs, obligations and Liabilities arising from or related to, any
commitments or obligations to any Governmental Entity involving the ANDA(s) and any of the other Purchased Assets.

 

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Article
6

OTHER AGREEMENTS

 

		Section 6.1	Confidentiality

 

The parties agree that
the exchange of confidential information and materials relating to the Purchased Assets and the terms and conditions contained
in this Agreement shall be governed by the Mutual Confidential Disclosure Agreement, which is hereby incorporated herein by reference
in its entirety.  The term of the Mutual Confidential Disclosure Agreement is hereby extended by the parties for five (5)
years beyond the term of the Agreement. 

 

		Section 6.2	Transfer of ANDA(s) and Technology Transfer Assistance

 

For a period of 30 days
from and after the Closing Date, Seller will cooperate with Buyer in disclosing and copying any relevant records and reports which
are required to be made, maintained and reported pursuant to Governmental Rules in the Territory with respect to the ANDA(s) that
is a part of the Purchased Assets, including ANDA(s) documents, marketing and regulatory authorizations and a tech-transfer package
containing analytical methods, master batch records, validation reports, Annual Product Reports, finished product and raw material
specifications, and retain samples, in each case to the extent they are available. The Parties will make reasonable efforts to
recover any missing regulatory documents (original ANDA(s) and any amendments or supplements thereto) from FDA and to take any
other actions required by the FDA to effect the transactions contemplated herein.

 

		Section 6.3	Intentionally left blank.

 

		Section 6.4	Further Action; Consents; Filings

 

Upon the terms and subject
to the conditions hereof, Seller and Buyer will use their respective reasonable efforts to: (i) take, or cause to be taken, all
actions necessary and proper under applicable Governmental Rules or otherwise to satisfy the conditions to Closing and consummate
and make effective the transactions contemplated by this Agreement, (ii) obtain from the requisite Governmental Entities any consents,
licenses, permits, waivers, approvals, authorizations or orders required to be obtained or made in connection with the authorization,
execution and delivery of this Agreement and the consummation of the transactions contemplated by this Agreement, and (iii) make
all necessary filings, and thereafter make any other advisable submissions, with respect to this Agreement and the transactions
contemplated by this Agreement required under any applicable Governmental Rules. The parties will cooperate with each other in
connection with the making of all filings, including by providing all such non-confidential documents to the other party hereto
and its advisors prior to filing and, if requested, by accepting all reasonable additions, deletions or changes suggested in connection
therewith. Seller and Buyer will furnish all information required for any application or other filing to be made pursuant to the
rules and regulations of any applicable Governmental Rules in connection with the transactions contemplated by this Agreement.

 

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Article
7

 

TERMINATION AMENDMENT
AND WAIVER

 

		Section 7.1	Termination

 

(a)     This Agreement may
be terminated and the transactions contemplated hereby abandoned at any time prior to the Closing:

 

		(i)	by mutual written consent of Seller and Buyer; or

 

		(ii)	by Buyer if any of the conditions set forth in Section 3.3 will have become incapable of
fulfillment and will not have been waived by Buyer; or

 

		(iii)	by Seller if any of the conditions set forth in Section 3.4 will have become incapable of
fulfillment and will not have been waived by Seller,

 

provided, the party seeking termination pursuant
to clause (ii) or (iii) is not in breach of any of its representations, warranties, covenants or agreements contained in this Agreement.

 

(b)     In the event of
termination of this Agreement by either party pursuant to this Section, written notice thereof will be given to the other party
and the transactions contemplated by this Agreement will be terminated, without further action by either party. If this Agreement
is terminated as provided herein:

 

		(i)	Buyer will return the Purchased Assets and all documents and other material received from Seller
relating to the Purchased Assets and to the transactions contemplated hereby, whether so obtained before or after the execution
hereof, to Seller; and

 

		(ii)	All confidential information received by Buyer with respect to Seller, the Purchased Assets will
be continued to be treated confidential in accordance with the Mutual Confidential Disclosure Agreement.

 

		Section 7.2	Amendments and Waivers

 

This Agreement may not
be amended except by an instrument in writing signed by both parties hereto. By an instrument in writing, Buyer, on the one hand,
or Seller, on the other hand, may waive compliance by the other party with any term or provision of this Agreement that such other
party was or is obligated to comply with perform.

 

Article
8

 

INDEMNIFICATION

 

		Section 8.1	Survival

 

All representations and
warranties of Seller and Buyer contained herein or made pursuant hereto will survive the Closing Date for an indefinite period
or until such time as Buyer and Seller shall mutually agree in writing. The covenants and agreements of the parties hereto contained
in this Agreement will survive and remain in full force for the applicable periods described herein or, if no such period is specified,
indefinitely. Any right of indemnification pursuant to this Article with respect to a claimed breach of a representation, warranty,
covenant, agreement or obligation shall expire only upon written release by the party whom such representation, warranty, covenant,
agreement or obligation is owed. The provisions of this Section 8.1 will survive for so long as any other Section of this
Agreement will survive.

 

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		Section 8.2	Indemnification

 

(a)     Seller Indemnification.
Seller hereby agrees to indemnify and defend Buyer and its Affiliates, and their respective officers, directors and employees (the
“Buyer Indemnified Parties”) against, and agrees to hold them harmless from, any Losses to the extent such Losses
arise from or in connection with the following:

 

(i)     breach or alleged breach by Seller and/or any of its
Affiliates or successors in interest thereto of any representation or warranty made by it contained in this Agreement;

 

(ii)     any breach or alleged breach by Seller and/or any of
its Affiliates or successors in interest thereto of any of its covenants, agreements or obligations contained in this Agreement;
or

 

(iii)     events, conditions actions or circumstances arising
prior to the Closing;

 

provided, that Seller’s aggregate liability
in respect of all Losses suffered or incurred by Buyer Indemnified Parties shall not exceed, and Seller will have no obligation
to compensate any Buyer Indemnified Party for Losses in excess of, an aggregate amount equal to the Purchase Price. Seller may
satisfy any obligation hereunder to compensate Buyer Indemnified Parties by a reduction in the unpaid balance of the Purchase Note;
and, if the amount of such Losses exceeds the unpaid portion of the Purchase Note, then, to the extent that any portion of the
Purchase Price or the payments due on the Purchase Note have been paid in the form of shares of stock in Buyer, Seller may pay
such excess Losses with shares of common stock in Buyer. If Seller elects to use common stock in Buyer to compensate the excess
Losses suffered or incurred by the Buyer Indemnified Parties, then the value of each share shall be the average closing price of
a share of Buyer’s common stock on the principal trading market on which such shares are then trading for the 10 trading
days immediately preceding the date on which the shares are delivered in payment.

 

(b)     Buyer Indemnification.
Buyer hereby agrees to indemnify and defend Seller and its Affiliates and related companies, and their respective officers, directors
and employees (the “Seller Indemnified Parties”) against, and agrees to hold them harmless from, any Losses
to the extent such Losses arise from or in connection with the following:

 

(i)     any breach or alleged breach by Buyer and/or any of its
Affiliates or successors in interest of any representation or warranty made by it contained in this Agreement;

 

(ii)     any breach or alleged breach by Buyer and/or any of
its Affiliates or successors in interest of any of its covenants, agreements or obligations contained in this Agreement; or

 

(iii)     any and all liability in
connection with the use and sale of the Product(s) by Buyer or the ANDA(s)

 

provided, that Buyer’s aggregate liability in
respect of all Losses suffered or incurred by Seller Indemnified Parties shall not exceed, and Buyer will have no obligation to
compensate any Seller Indemnified Party for Losses in excess of, an aggregate amount equal to the Purchase Price.

 

    	 	- 12 -	Confidential

     

    

 

		Section 8.3	Procedure

 

(a)     In order for an Indemnified
Party under this Article 8 (an “Indemnified Party”) to be entitled to any indemnification provided for
under this Agreement, the Indemnified Party will, within a reasonable period of time following the discovery of the matters giving
rise to any Losses, notify its applicable insurer and the indemnifying party under this Article 8 (the “Indemnifying
Party”) in writing of its claim for indemnification for such Losses, specifying in reasonable detail the nature of the
Losses and the amount of the liability estimated to accrue therefrom; provided, however, that failure to give notification
will not affect the indemnification provided hereunder, except to the extent the Indemnifying Party will have been actually prejudiced
as a result of the failure. Thereafter, the Indemnified Party will deliver to the Indemnifying Party, within a reasonable period
of time after the Indemnified Party’s receipt of such request, all information, records and documentation reasonably requested
by the Indemnifying Party with respect to such Losses. The Indemnifying Party shall control all litigation reflecting to the indemnification.
Without limiting the foregoing, the Indemnified Party shall control choice of counsel, staffing, and all decisions to be made with
the litigation.

 

(b)     If the indemnification
sought pursuant hereto involves a claim made by a non-party against the Indemnified Party (a “Non-Party Claim”),
the Indemnifying Party will be entitled to participate in the defense of such Non-Party Claim and, if it so chooses, to assume
the defense of such Non-Party Claim with counsel selected by the Indemnifying Party. Should the Indemnifying Party so elect to
assume the defense of a Non-Party Claim, the Indemnifying Party will not be liable to the Indemnified Party for any legal expenses
subsequently incurred by the Indemnified Party in connection with the defense thereof. If the Indemnifying Party assumes such defense,
the Indemnifying Party will control such defense. The Indemnifying Party will be liable for the reasonable fees and expenses of
counsel employed by the Indemnified Party for any period during which the Indemnifying Party has not assumed the defense thereof
(other than during any period in which the Indemnified Party will have failed to give notice of the Non-Party Claim as provided
above). If the Indemnifying Party chooses to defend or prosecute a Non-Party Claim, all of the parties hereto will cooperate in
the defense or prosecution thereof. Such cooperation will include the retention and (upon the Indemnifying Party’s request)
the provision to the Indemnifying Party of records and information, which are reasonably relevant to such Non-Party Claim, and
making employees available on a mutually convenient basis to provide additional information and explanation of any material provided
hereunder. If the Indemnifying Party chooses to defend or prosecute any Non-Party Claim, the Indemnifying Party will seek the approval
of the Indemnified Party (not to be unreasonably withheld) to any settlement, compromise or discharge of such Non-Party Claim the
Indemnifying Party may recommend and which by its terms obligates the Indemnifying Party to pay the full amount of the liability
in connection with such Non-Party Claim. Whether or not the Indemnifying Party will have assumed the defense of a Non-Party Claim,
the Indemnified Party will not admit any liability with respect to, or settle, compromise or discharge, such Non-Party Claim without
the Indemnifying Party’s prior written consent. The Indemnifying Party shall reimburse upon demand, all reasonable costs
and expenses incurred by the Indemnified Party in cooperation with the defense or prosecution of the Non-Party Claim.

 

		Section 8.4	Exclusive
                                         Remedy.

 

The indemnification rights
provided in this Article 8 shall constitute the sole and exclusive remedy with respect to all claims of any kind or nature related
to, or arising out of, or in connection with, any breach of or inaccuracy in any representation, warranty or covenant contained
in this Agreement (other than claims arising from fraud or intentional misrepresentation on the part of a party in connection with
the transactions contemplated by this Agreement). Nothing in this Section 8.4 shall limit any party's right to seek and obtain
any equitable relief, including specific performance, to which any party shall be entitled or to seek any remedy on account of
any party's fraudulent or intentional misrepresentation.

 

    	 	- 13 -	Confidential

     

    

 

Article
9

 

GENERAL PROVISIONS

 

		Section 9.1	Expenses

 

Except as otherwise specified
in this Agreement, all costs and expenses, including fees and disbursements of counsel, financial advisors and accountants, incurred
in connection with this Agreement and the transactions contemplated hereby will be paid by the party incurring such costs and expenses,
whether or not the Closing will have occurred.

 

		Section 9.2	Further Assurances and Actions

 

Each of the parties hereto,
upon the request of the other party hereto, whether before or after the Closing and without further consideration, will do, execute,
acknowledge and deliver or cause to be done, executed, acknowledged or delivered all such further acts, deeds, documents, assignments,
transfers, conveyances, powers of attorney and assurances as may be reasonably necessary to effect complete consummation of the
transactions contemplated by this Agreement. Seller and Buyer agree to execute and deliver such other documents, certificates,
agreements and other writings and to take such other actions as may be reasonably necessary in order to consummate or implement
expeditiously the transactions contemplated by this Agreement.

 

		Section 9.3	Notices

 

All notices and other communications
required or permitted to be given or made pursuant to this Agreement shall be in writing signed by the sender and shall be deemed
duly given: (a) on the date delivered, if personally delivered, (b) on the date sent by facsimile with automatic confirmation by
the transmitting machine showing the proper number of pages were transmitted without error, (c) on the Business Day after being
sent by Federal Express or another recognized overnight mail service which utilizes a written form of receipt for next day or next
business day delivery, or (d) upon receipt after mailing, if mailed by United States postage-prepaid certified or registered mail,
return receipt requested, in each case addressed to the applicable party at the address set forth below: provided that
a party may change its address for receiving notice by the proper giving of notice hereunder:

 

		(a)	if to Seller, to:

 

Mikah Pharma LLC

 

		(b)	if to Buyer, to:

 

Elite Laboratories, Inc.

165 Ludlow Avenue

Northvale, New Jersey 07647

 

    	 	- 14 -	Confidential

     

    

 

Attn: Carter Ward, Chief Financial
Officer

Fax No.: (201) 750-2755

 

With a courtesy copy,
which shall not constitute notice hereunder, sent to:

 

Richard Feiner, Esq.

Wall Street Plaza

88 Pine Street

22nd floor

New York, NY 10005

Attn: Richard Feiner

Fax No.: (917) 720-0863

 

		Section 9.4	Headings

 

The table of contents and
headings contained in this Agreement are for reference purposes only and will not affect in any way the meaning or interpretation
of this Agreement.

 

		Section 9.5	Severability

 

If any term or other provision
of this Agreement is invalid, illegal or incapable of being enforced under any law or public policy, all other terms and provisions
of this Agreement will nevertheless remain in full force and effect so long as the economic or legal substance of the transactions
contemplated hereby is not affected in any manner materially adverse to any party. Upon such determination that any term or other
provision is invalid, illegal or incapable of being enforced, the parties hereto will negotiate in good faith to modify this Agreement
so as to effect the original intent of the parties hereto as closely as possible in an acceptable manner in order that the transactions
contemplated hereby are consummated as originally contemplated to the greatest extent possible.

 

		Section 9.6	Counterparts

 

This Agreement may be executed
in one (1) or more counterparts, all of which will be considered one and the same agreement and will become effective when one
or more counterparts have been signed by each of the Parties hereto and delivered to the other parties hereto. This Agreement,
once executed by a Party, may be delivered to the other Party hereto by facsimile or electronic transmission of a copy of this
Agreement bearing the signature of the Party so delivering this Agreement. A faxed or electronically delivered signature shall
have the same legally binding effect as an original signature.

 

		Section 9.7	Entire Agreement: No Non-Party Beneficiaries

 

This Agreement and the
Exhibits and Schedules hereto constitute the entire agreement and supersede all prior agreements and understandings both written
and oral (including any letter or intent, memorandum of understanding electronic communicators, e-mail or term sheet), between
or among the parties hereto with respect to the subject matter hereof. Except as specifically provided herein or therein, such
agreements are not intended to confer upon any non-party other than the parties hereto any rights or remedies hereunder or thereunder.

 

    	 	- 15 -	Confidential

     

    

 

		Section 9.8	Governing Law

 

This Agreement and any
and all matters arising directly or indirectly herefrom shall be governed by and construed and enforced in accordance with the
laws of the State of New Jersey, U.S.A. applicable to agreements made and to be performed entirely in such state, without giving
effect to the conflict of law principles thereof.

 

		Section 9.9	Jurisdiction, Venue, Service of Process

 

Buyer and Seller agree
to irrevocably submit to the sole and exclusive jurisdiction of the state or federal courts in the state of New Jersey for any
suit, action or other proceeding arising out of this Agreement or any transaction contemplated hereby. Notwithstanding the foregoing,
only if such suit, action or other proceeding may not be brought in New Jersey, it may instead be brought in a Delaware court of
appropriate jurisdiction. Each party agrees that service of any process, summons, notice or document by U.S. registered mail or
recognized international courier service to such party’s address set forth in this Agreement shall be effective service of
process.

 

		Section 9.10	Specific Performance

 

The parties hereto agree
that irreparable damage would occur in the event any provision of this Agreement were not performed in accordance with the terms
hereof and that the parties will be entitled to specific performance of the terms hereof, in addition to any other remedy at law
or in equity, without the necessity of demonstrating the inadequacy of monetary damages and without the posting of a bond.

 

		Section 9.11	Force Majeure

 

Neither party will be in
default of this Agreement to the extent that performance of its obligations (other than obligations to pay amounts owed under this
Agreement) is delayed or prevented by reason of events or circumstances beyond its reasonable control, including without limitation,
earthquake, flood or other acts of God, fire, explosion, terrorism, war, compliance with laws, regulations or governmental or judicial
orders, labor disputes, unavailability of transportation (“Force Majeure”). Should either party be delayed in
or prevented from performing any of its obligations under this Agreement by reason of Force Majeure, such party shall give prompt
notice thereof to the other party and shall be obligated to perform the affected obligations within sixty (60) days after the Force
Majeure ceases to delay or prevent performance thereof.

 

		Section 9.12	Publicity

 

Neither party will make
any public announcement concerning, or otherwise publicly disclose, any information with respect to the transactions contemplated
by this Agreement or any of the terms and conditions hereof without the prior written consent of the other parties hereto. Notwithstanding
the foregoing, either party may make any public disclosure concerning the transactions contemplated hereby that in the opinion
of such party’s counsel may be required by law or the rules of any stock exchange on which such party’s or its Affiliates’
securities trade; provided, however, the party making such disclosure will provide the non-disclosing party with
a copy of the intended disclosure reasonably, and to the extent practicable, prior to public dissemination, and the parties hereto
will coordinate with one another regarding the timing, form and content of such disclosure. Notwithstanding the foregoing, after
the Closing, Buyer may publicize its ability to market and sell the Product(s) without approval from Seller.

 

    	 	- 16 -	Confidential

     

    

 

		Section 9.13	Schedules and Exhibits.

 

The Schedules and all Exhibits
attached hereto are hereby incorporated by reference into, and made a part of, this Agreement.

 

		Section 9.14	Ambiguities.

 

Each Party and its counsel
have participated fully in the review and revision of this Agreement. Any rule of construction to the effect that ambiguities are
to be resolved against the drafting party shall not apply in interpreting this Agreement. The language in this Agreement shall
be interpreted as to its fair meaning and not strictly for or against any Party.

 

		Section 9.15	Assignment

 

Neither party may assign
its rights or obligations under this Agreement without the prior written consent of the other party; provided, however,
that either party may assign its rights and obligations under this Agreement, without the prior written consent of the other party,
to an Affiliate or to a successor of the assignment party by reason of merger, sale of all or substantially all of its assets or
any similar transaction. Any permitted assignee or successor-in-interest will assume all obligations of its assignor under this
Agreement. No assignment will relieve either party of its responsibility for the performance of any obligation. This Agreement
will be binding upon and inure to the benefit of the parties hereto and their respective successors and permitted assigns.

 

[signature page follows]

 

    	 	- 17 -	Confidential

     

    

 

IN WITNESS WHEREOF,
the parties hereto have caused this Agreement to be signed by their respective representatives thereunto duly authorized, all as
of the date first written above.

 

	 	MIKAH PHARMA LLC	 	ELITE LABORATORIES, INC. 
	 	 	 	 	 
	By:	/s/ Nasrat Hakim	 	By:	/s/ Carter Ward
	 	Nasrat Hakim, President and CEO	 	 	Carter Ward, Chief Financial Officer

 

    	 	- 18 -	Confidential

     

    

 

Exhibit 10.50

May 15, 2017

 

SCHEDULE 1

 

ABBREVIATED NEW DRUG APPLICATIONS

 

 

	Number	 	Description	 	Status
	077361	 	Trimipramine Maleate Capsules, 25, 50 and 100 mg	 	Approved ANDA

 

    	 	- 1 -	Confidential

     

    

 

Exhibit 10.50

May 15, 2017

 

EXHIBIT A

 

BILL OF SALE

 

THIS BILL OF SALE, dated
May 15, 2017, is executed by Mikah Pharma LLC (“Seller”), a limited liability company organized under the laws of Delaware
in favor of Elite Laboratories, Inc. (“Buyer”), a corporation incorporated under the laws of Delaware, pursuant to
the Asset Purchase Agreement, dated May 15, 2017 (the “Agreement”), by and between Seller and Buyer. Capitalized terms
used but not defined herein have the meanings given to them in the Agreement.

 

i.     The Agreement provides for, among other
things, the sale of the Purchased Assets by Seller to Buyer.

 

ii.     In consideration
of the payment of the amounts set forth in the Agreement, Seller by this Bill of Sale does hereby, sell, transfer, assign and deliver
to Buyer, all of its rights, title and interest in and to the Purchased Assets.

 

iii.     Seller hereby represents
that from time to time after the delivery of this instrument, at Buyer’s request and without further consideration, Seller
will do, execute, acknowledge and deliver, or will cause to be done, executed, acknowledged and delivered, all such further acts,
deeds, conveyances, transfers, assignments, powers of attorney and assurances as reasonably may be required more effectively to
convey, transfer to and vest in Buyer, and to put Buyer in possession of, the Purchased Assets.

 

iv.     This instrument
is executed by, and will be binding upon, Seller and its successors and assigns for the uses and purposes set forth herein.

 

v.     This Bill of Sale
shall be construed and enforced in accordance with the laws of the State of New Jersey.

 

IN WITNESS WHEREOF,
this Bill of Sale has been duly executed and delivered by Seller as of the date and year first written above.

 

	 	MIKAH PHARMA LLC	 
	 	 	 
	By:	 	 
	 	Nasrat Hakim, President and CEO	 

 

    	 	- 1 -	Confidential

     

    

 

Exhibit 10.50

May 15, 2017

 

EXHIBIT B

 

FORM OF SECURED PROMISSORY NOTE

 

[See Exhibit
10.51]

 

    	 	- 1 -	Confidential

     

    

 

Exhibit 10.50

May 15, 2017

 

EXHIBIT C

 

FORM OF ANDA SECURITY AGREEMENT

 

[See Exhibit 10.52]

 

    	 	- 1 -	ConfidentialExhibit 10.51

 

THIS SECURED PROMISSORY NOTE (THE “NOTE”)
HAS NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON
AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY,
MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE
EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH
APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE
TO THE COMPANY.

 

	Issue Date: May 15, 2017	Principal Amount: $1,200,000.00

 

ELITE PHARMACEUTICALS, INC. AND ELITE
LABORATORIES, INC.

SECURED NOTE DUE 2020

 

FOR VALUE RECEIVED,
pursuant to the Purchase Agreement (as defined below), ELITE PHARMACEUTICALS, INC., a Nevada corporation (the “Company”)
and its wholly-owned subsidiary, ELITE LABORATORIES, INC., a Delaware corporation (“Elite” and, together
with the Company, the “Debtors”), jointly and severally, promise to pay to the order of MIKAH PHARMA
LLC, a limited liability company organized under the laws of the State of Delaware (the “Holder”), the
principal sum of Million Dollars Two Hundred Thousand and no cents ($1,200,000), plus all accrued but unpaid interest thereon,
on the Maturity Date (as defined below), or such earlier date as the Note is required or permitted to be repaid as provided hereunder.
Interest shall accrue and be payable as set forth below in Section 2(b).

 

Payments of principal
shall be made in lawful money of the United States of America to the Holder at its address as provided in Section 9
or by wire transfer to such account specified from time to time by the Holder hereof for such purpose by notice as provided in
Section 9.

 

1.          Definitions.
In addition to the terms defined elsewhere in this Note, (a) capitalized terms that are not otherwise defined herein have
the meanings given to such terms in the Asset Purchase Agreement by and between Holder and Elite of even date (the “Purchase
Agreement”), and (b) the following terms have the meanings indicated:

 

“Bankruptcy
Event” means any of the following events: (a) any of the Debtors commences a case or other proceeding under any
bankruptcy, reorganization, arrangement, adjustment of debt, relief of debtors, dissolution, insolvency or liquidation or similar
law of any jurisdiction relating to such Debtor; (b) there is commenced against any of the Debtors any such case or proceeding
that is not dismissed within 60 days after commencement; (c) any of the Debtors is adjudicated insolvent or bankrupt or any order
of relief or other order approving any such case or proceeding is entered; (d) any of the Debtors suffers any appointment of any
custodian or the like for it or any substantial part of its property that is not discharged or stayed within 60 days; (e) any
of the Debtors makes a general assignment for the benefit of creditors; (f) any of the Debtors calls a meeting of its creditors
with a view to arranging a composition, adjustment or restructuring of its debts; or (g) any of the Debtors, by any act or failure
to act, expressly indicates its consent to, approval of or acquiescence in any of the foregoing or takes any corporate or other
action for the purpose of effecting any of the foregoing.

 

     

     

    

 

“Maturity
Date” means December 31, 2020.

 

“Original
Issue Date” means the date of the first issuance of this Note.

 

“Person”
means any individual, corporation, partnership, limited liability company, joint venture, trust, business association, organization,
Governmental Entity or other entity.

 

“Security
Agreement” means the Security Agreement of even date between the Holder as Secured Party and the Debtors as Debtors.

 

“Transaction
Documents” means, collectively, this Note, the Purchase Agreement, the Security Agreement, and the schedules and
exhibits hereto and thereto.

 

2.          Payment
of Principal and Interest.

 

(a)         Principal
Payment at Maturity. The Company shall pay the outstanding principal balance of this Note to the Holder on the Maturity Date.

 

(b)         Interest
Payments. Interest shall be computed on the unpaid principal amount at the per annum rate of ten percent (10%); provided,
upon the occurrence of an Event of Default as defined hereunder, the principal balance shall bear interest from the date of such
occurrence until the date of actual payment at the per annum rate of fifteen percent (15%). All interest payable hereunder shall
be computed on the basis of actual days elapsed and a year of 360 days. Installment payments of interest on the outstanding principal
shall be paid as follows: quarterly commencing August 1, 2017 and on November 1, February 1, May 1 and August 1 of each year thereafter.
All unpaid principal and accrued but unpaid interest shall be due and payable in full on the Maturity Date

 

3.          Registration
of Notes. The Debtors shall register the Note upon records to be maintained by the Debtors for that purpose (the “Note
Register”) in the name of the record holder thereof from time to time. The Debtors may deem and treat the registered
Holder of this Note as the absolute owner hereof for the purpose of any payment of principal hereon, and for all other purposes,
absent actual notice to the contrary.

 

4.          Transfers;
Registration thereof.

 

(a)         The
Holder is not permitted to transfer this Note or any of its rights thereunder; except to its sole member or any other entity wholly-owned
by its sole member; provided that the transferee of any such permitted transfer agrees to be bound by this and any other restrictions
of Holder under the Note.

 

(b)         The
Debtors shall register the transfer of any portion of this Note in the Note Register upon surrender of this Note to the Debtors
at its address for notice set forth herein. Upon any such registration or transfer, a new Note, in substantially the form of this
Note (any such new Note, a “New Note”), evidencing the portion of this Note so transferred shall be
issued to the transferee and a New Note evidencing the remaining portion of this Note not so transferred, if any, shall be issued
to the transferring Holder. The acceptance of the New Note by the transferee thereof shall be deemed the acceptance by such transferee
of all of the rights and obligations of a holder of a Note. No service charge or other fee will be imposed in connection with
any such registration of transfer or exchange.

 

    	 	-2-	 

     

    

 

5.          Events
of Default.

 

(a)          “Event
of Default” means any one of the following events (whatever the reason and whether it shall be voluntary or involuntary
or effected by operation of law or pursuant to any judgment, decree or order of any court, or any order, rule or regulation of
any administrative or governmental body):

 

(i)          any
default in the payment of principal in respect of the Note, as and when the same becomes due and payable (whether on the date
on which the obligations under the Note mature or by acceleration, redemption, prepayment or otherwise) and such default continues
for a period of fifteen (15) Business Days;

 

(ii)         a
material breach by any of the Debtors of its covenants, representations or warranties hereunder or in any other Transaction Document
that remains uncured for a period of thirty (30) days following receipt by the Debtors of written notice of such breach;

 

(iii)        any
Debtor, which is a partnership, limited liability company, limited partnership or a corporation, dissolves, suspends or discontinues
doing business (other than a consolidation or similar transaction between the Debtors); or

 

(iv)        the
occurrence of a Bankruptcy Event.

 

(b)          At
any time or times following the occurrence of an Event of Default, all amounts due and owing under this Note shall become immediately
due and payable.

 

(c)          Upon
the occurrence of any Bankruptcy Event, all amounts due and owing under this Note shall immediately become due and payable in
full in cash, without any further action by the Holder.

 

(d)          In
connection with any Event of Default, the Holder need not provide and the Debtors hereby waive any presentment, demand, protest
or other notice of any kind, and the Holder may immediately and without expiration of any grace period enforce any and all of
its rights and remedies hereunder, under any of the Transaction Documents and all other remedies available to it under applicable
law. Any such declaration may be rescinded and annulled by the Holder at any time prior to payment hereunder. No such rescission
or annulment shall affect any subsequent Event of Default or impair any right consequent thereto. The remedies under this Note
and any other Transaction Document or available under applicable law shall be cumulative.

 

    	 	-3-	 

     

    

 

6.          Charges,
Taxes and Expenses. The Holder shall be responsible for all tax liability that may arise as a result of holding or transferring
this Note.

 

7.          Grant
of Security Interest. This Note and payments of principal and all other obligations with respect to this Note are hereby secured
by all of the Purchased Assets. Elite hereby conveys to Holder a first priority security interest in all Purchased Assets as set
forth in the Security Agreement. 

 

8.          Notices.
Any and all notices or other communications or deliveries hereunder shall be in writing and shall be deemed given and effective
on the earliest of (i) the date of transmission, if such notice or communication is delivered via facsimile at the facsimile number
specified in this Section 9 prior to 5:30 p.m. (New York City time) on a Business Day, (ii) the next Business Day
after the date of transmission, if such notice or communication is delivered via facsimile at the facsimile number specified in
this Section 9 on a day that is not a Business Day or later than 5:30 p.m. (New York City time) on any Business Day, (iii)
the Business Day following the date of mailing, if sent by nationally recognized overnight courier service, or (iv) upon actual
receipt by the party to whom such notice is required to be given. The addresses for such communications shall be: (i) if to any
of the Debtors, care of Elite as set forth in the Purchase Agreement, or (ii) if to the Holder, as set forth in the Purchase Agreement.

 

9.            Miscellaneous.

 

(a)          This
Note shall be binding on and inure to the benefit of the parties hereto and their respective successors and permitted assigns.
The Debtors shall not be permitted to assign this Note and the Holder shall not be permitted to assign this Note other than pursuant
to Section 4.

 

(b)          Subject
to Section 9(a), nothing in this Note shall be construed to give to any person or corporation other than the Debtors and
the Holder any legal or equitable right, remedy or cause under this Note.

 

(c)          Governing
Law; Venue; Waiver Of Jury Trial. all questions concerning the construction, validity,
enforcement and interpretation of this Note shall be governed by and construed and enforced in accordance with the internal laws
of the state of new JERSEY, without regard to the principles of conflicts of law thereof. each party hereby irrevocably submits
to the exclusive jurisdiction of the federal courts sitting in the county of ESSEX, CITY OF NEWARK AND OF THE STATE COURTS SITTING
IN THE COUNTY OF BERGEN, city of HACKENSACK, for the adjudication of any dispute hereunder or in connection herewith or with any
transaction contemplated hereby or discussed herein (including with respect to the enforcement of any of the transaction documents),
and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally
subject to the jurisdiction of any such court, that such suit, action or proceeding is improper. 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 agreement 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 manner permitted
by law. the borrowers hereby waives all rights to a trial by jury.

 

    	 	-4-	 

     

    

 

(d)          The
headings herein are for convenience only, do not constitute a part of this Note and shall not be deemed to limit or affect any
of the provisions hereof.

 

(e)          In
case any one or more of the provisions of this Note shall be invalid or unenforceable in any respect, the validity and enforceability
of the remaining terms and provisions of this Note shall not in any way be affected or impaired thereby and the parties will attempt
in good faith to agree upon a valid and enforceable provision which shall be a commercially reasonable substitute therefor, and
upon so agreeing, shall incorporate such substitute provision in this Note.

 

(f)          No
provision of this Note may be waived or amended except in a written instrument signed, in the case of an amendment, by the Debtors
and the Holder or, or, in the case of a waiver, by the Holder. No waiver of any default with respect to any provision, condition
or requirement of this Note shall be deemed to be a continuing waiver in the future or a waiver of any subsequent default or a
waiver of any other provision, condition or requirement hereof, nor shall any delay or omission of either party to exercise any
right hereunder in any manner impair the exercise of any such right.

 

(g)          Each
Party and its counsel have participated fully in the review and revision of this Note and the Transaction Documents. Any rule
of construction to the effect that ambiguities are to be resolved against the drafting party shall not apply in interpreting this
Agreement. The language in this Note and the Transaction Documents shall be interpreted as to its fair meaning and not strictly
for or against any Party.

 

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    	 	-5-	 

     

    

 

IN WITNESS WHEREOF,
the Debtors have caused this Note to be duly executed by a duly authorized officer as of the date first above indicated.

 

	 	ELITE PHARMACEUTICALS, INC
	 	 
	 	By /s/ Carter Ward
	 	Name: Carter Ward
	 	Title: CFO
	 	 
	 	ELITE LABORATORIES, INC.
	 	 
	 	By /s/ Carter Ward
	 	Name: Carter Ward
	 	Title: CFO

 

    	 	-6-

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