Document:

Exhibit 10. 77

 

MASTER DEVELOPMENT AND LICENSE AGREEMENT
FOR PRODUCT BETWEEN ELITE PHARMACEUTICALS, INC. AND {***}

 

This DEVELOPMENT AND
LICENSE AGREEMENT (the “Agreement”), dated March 16, 2012 (the “Effective Date”) between {***} ({***})
and Elite Laboratories, Inc. (a subsidiary of Elite Pharmaceuticals, Inc.), organized under the laws of the State of Nevada, with
offices at 165 Ludlow Avenue, Northvale, New Jersey (“Elite”); {***} and Elite may sometimes hereinafter be
referred to as a “Party” or collectively as the “Parties”.

 

A.          WHEREAS
{***} desires that Elite formulate and manufacture finished dosage forms appropriate for NDA filing and commercial sale,
in accordance with the requirements of this Agreement; and

 

B.          WHEREAS
Elite desires to perform such formulation, manufacture and production and {***} desires to market, sell and distribute the
Product all upon the terms and conditions of this Agreement and the agreements ancillary hereto;

 

NOW, THEREFORE in consideration
of the mutual covenants and agreements contained herein, the sufficiency, adequacy and satisfaction of which are hereby acknowledged,
{***} and Elite hereby agree as follows:

 

ARTICLE 1

 

DEFINITIONS

 

The following terms shall have the meanings set forth in this
Agreement:

 

		1.1	“Affiliate” shall mean any person or entity, which, directly or indirectly, controls,
is controlled by, or is under common control with, a party or its assignee. Control shall be determined based upon either their
legal right to control or de facto control of the entity.

 

		1.2	“Agreement” shall have the meaning set forth in the Preamble and shall include any
exhibits and attachments hereto.

 

		1.3	“API” shall mean the active pharmaceutical ingredient.

 

{***} Confidential portions of this exhibit have been redacted
and filed separately with the Commission pursuant to a confidential treatment request in accordance with Rule 24b-2 of the Securities
Exchange Act of 1934, as amended 

 

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		1.4	“Applicable Laws” shall mean all laws, ordinances, codes, rules and regulations applicable
to the manufacturing of the Product or any aspect thereof in the Territory and the obligations of Elite or {***}, as the
context requires under this Agreement, including, without limitation: (i) all applicable federal, state and local laws and regulations
of the Territory (including Environmental Laws); (ii) the U.S. Federal Food, Drug and Cosmetic Act, and (iii) the Regulations promulgated
under the FD&C Act including without limitation those regarding cGMP, each as amended from time to time and (iv) all laws ordinances,
codes, rules and regulations applicable to Elite as they apply to the Product.

 

		1.5	“CMC” means - Chemistry, Manufacturing, and Controls under the FD&C Act.

 

		1.6	“Competitive Product” shall mean a similar dosage form containing Product or equivalent.

 

		1.7	“Data” shall refer to all data, materials, plans, reports, test results and other information
developed in connection with the Product.

 

		1.8	“Elite Development Activities” has the meaning set forth in Section 2.1.

 

		1.9	“Facility” shall mean Elite’s finished product manufacturing facility located
at 165 Ludlow Avenue, Northvale, New Jersey or any other Elite controlled facility approved by {***}.

 

		1.10	“FDA” shall mean the United States Food and Drug Administration.

 

		1.11	“FD&C Act” shall mean the United States Federal Food, Drug and Cosmetics Act, (21
U.S.C. 301, et seq.), as amended from time to time, and any regulation promulgated thereunder, including, without limitation, all
current good manufacturing practices and current good laboratory practices as defined therein, in each case, as amended from time
to time.

 

		1.12	“Finished Goods” means the Product in its final commercial package.

 

		1.13	“Force Majeure” shall mean the occurrence of an event which materially interferes with
the ability of a Party to perform its obligations or duties hereunder which is not within the reasonable control of the Party affected,
not due to malfeasance, and which could not with the exercise of due diligence have been avoided, including, but not limited to,
fire, accident, work stoppage, sabotage, strike, riot, civil commotion, terrorism, act of God or change in law.

 

		1.14	“Good Manufacturing Practices” or “cGMP” shall mean the current good manufacturing
practices for manufacturing finished products and active pharmaceutical ingredients as set forth in the FD&C Act, their attendant
rules and regulations, and any other current good manufacturing practices which are applicable to the Facility.

 

		1.15	“Know-How” means proprietary
                                                            know-how, trademarks, inventions, data, technology and information
                                                            relating to Product, which either Party hereto has the lawful right
                                                            to disclose to the other Party. “Know-How”
                                                            shall include, without limitation, processes and analytical methodology
                                                            used in development, testing, analysis and manufacture and medical,
                                                            clinical, toxicological testing as well as other scientific data relating
                                                            to Product.

 

{***}
Confidential portions of this exhibit have been redacted and filed separately with the Commission pursuant to a confidential treatment
request in accordance with Rule 24b-2 of the Securities Exchange  Act of 1934, as amended

 

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		1.16	“Milestone
                                                            Timetable” shall mean the
                                                            mutually agreed dates upon which Elite is obligated to complete
                                                            the specific components of the Elite Development Activities with respect
                                                            to Product, as evidenced in Exhibits A and B hereto.

 

		1.17	“NDA” shall mean New Drug Application pursuant to the applicable part of FD&C Act,
and any supplements and amendments thereto which may be filed by {***}.

 

		1.18	“Product” means {***}

 

		1.19	“Regulatory Filings” means filings with the FDA such as the NDA.

 

		1.20	“Regulatory Approvals” shall mean the approvals required under the FD&C Act to
sell and market the Product in the Territory.

 

		1.21	“Regulatory Requirements” shall mean any requirements under or pursuant to the FD&C
Act or other Applicable Laws.

 

		1.22	“Regulatory Standards” shall mean (a) the Facility license requirements, including
good laboratory practices, and the Good Manufacturing Practice regulations applicable to the Facility or Elite's research and development,
production, packaging, storage or handling of Product at the Facility and (b) any standards of any governmental authority, including
good laboratory practices, within the Territory, that apply to the Facility, Elite’s research and development facilities
or Elite’s production, packaging, storage or handling of the Product.

 

		1.23	“Specifications” with respect to the Product shall mean the development, manufacturing,
quality control, packaging, labeling, shipping and storage specifications in the applicable USP-NF (United States Pharmacopeia-
National Formulary), monograph, the Drug Master File or other Regulatory Filing, in the form of specifications set forth as part
of this Agreement, including without limitation, those set forth on Exhibit C hereto, and such specifications as may from time
to time be established by applicable Regulatory Authorities and as mutually agreed upon by the Parties.

 

		1.24	“Termination Event” has the meaning set forth in Section 8.2.

 

		1.25	“Territory” means the United States of America, its territories, possessions, commonwealths.

 

ARTICLE 2

 

DEVELOPMENT ACTIVITIES AND
PRODUCT APPROVAL

 

		2.1	Product Development and Development
                                                           Activities for Elite. Except as provided for in Section 2.2 of this
                                                           Agreement, Elite shall undertake and perform all reasonably necessary
                                                           development work to create a robust formulation, analytical development
                                                           and perform all other developmental actions necessary or required to
                                                           facilitate the preparation of a Regulatory Filing for Product, as
                                                           more fully set forth as Elite responsibilities on Exhibit A (the “Elite
                                                           Development Activities”). For purposes of further clarification,
                                                           Elite Development Activities conducted by Elite shall include, without
                                                           limitation, each of the following in accordance with Regulatory Requirements
                                                           and established Specifications:

 

{***}
Confidential portions of this exhibit have been redacted and filed separately with the Commission pursuant to a confidential treatment
request in accordance with Rule 24b-2 of the Securities Exchange Act of 1934, as amended

 

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		a.	Testing
                                                              API, excipients, packaging and components that are selected from
                                                              an FDA approved vendor. 

 

		b.	Formulation development with {***} guidance intended to result
in a formulation that will pass the USP and all other specifications required by FDA for Product and leads to an approved NDA.

 

		c.	Transfer and revalidate analytical methods supplied by {***}
(such as assay, dissolution, related substances, etc.); 

 

		d.	Manufacturing a pivotal batch (One pivotal batch, {***}); 

 

		e.	Conducting stability studies in accordance with cGMP, applicable
laws, including room temperature and accelerated stability for the validation batch;

 

		f.	Writing the CMC section and compile the documents, data and dossier
necessary for the filing of an IND for the Product that is adequate for {***}.

 

Elite has sole responsibility
for the Elite Development Activities, but shall consult with {***} and obtain {***}’s approval for any
formulation contemplated for use in the exhibit batches. Elite shall not use any information gained in Elite’s Development
Activities for {***} to assist in the development of a Competitive Product by any third party.

 

		2.2	Product Development and Sales Activities for {***}. {***}will be responsible for
clinical, PK studies, Regulatory Filings and sales and distribution of the Product.

 

		a.	{***}or its designees shall prepare all applications necessary to obtain any Product registration
and permits required to file the Product in the Territories. The NDA shall be owned by {***}. Elite, however, shall write
the CMC section and prepare all completed data and information deemed necessary.

 

		b.	{***}will be responsible for any clinical, biostudies required for the Product.

 

		2.3	Ownership of Regulatory Filings. {***}shall own and maintain the NDA, Regulatory Approvals
and any other jurisdictionally required Regulatory Filings for the Product. Elite will offer any assistance as reasonably requested
with maintenance of the Regulatory Filings, as {***}or a Regulatory Authority may require.

 

		2.4	Exclusive Rights. Elite does not have
                                                           any right, title or interest in or to the Data or any other information
                                                           generated in connection with the Elite Development Activities other
                                                           than as covered in Article 6 and
                                                           shall not use the Data for any purpose other than as expressly provided
                                                           herein. Elite agrees that to violate this provision would cause {***}significant
                                                           and irreparable harm and accordingly, {***}may seek an injunction
                                                           against Elite in this event.

 

{***}
Confidential portions of this exhibit have been redacted and filed separately with the Commission pursuant to a confidential treatment
request in accordance with Rule 24b-2 of the Securities Exchange Act of 1934, as amended

 

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ARTICLE 3

 

MANUFACTURING AND SUPPLY OF
PRODUCT

 

		3.1	Manufacturing Agreement. Elite and {***}agree that, upon approval
of the NDA for Product, Elite will be the Preferred Manufacturer and supplier of the Product in the Territory for sales of the
Product in the Territory for a price equal to Elite’s manufacturing costs, {***} and the Parties will negotiate in good faith
a manufacturing and supply agreement for the Product. ANDA maintenance activities such as stability or annual report filling will
be billed separately on a quarterly basis. Preferred Manufacturer means that Elite will have the right to supply a minimum of {***}
of {***}’s market needs for the Product. If Elite is unable to supply {***}’s purchase orders for a period
of 90 days or more, Elite shall lose its status as a Preferred Manufacturer. If Elite is unable to accept {***}’s
purchase orders within thirty (30) business days of receipt, {***} has the right to make a one time payment of {***} and designate
an alternative supplier as the Preferred Manufacturer.

 

ARTICLE 4

 

PAYMENTS

 

		4.1	Payments for Development. In consideration of Elite’s performance with the terms and conditions
of this agreement, {***} shall pay Elite for the development work according to the terms outlined in exhibit B.

 

ARTICLE
5

 

REPRESENTATIONS, WARRANTIES AND COVENANTS

 

		5.1	Representations and warranties:

 

		(a)	Each Party represents and warrants to the other that it is authorized to enter into and to perform
its obligations under this Agreement.

 

		(b)	Each Party represents and warrants to the other that its obligations created under this Agreement
do not conflict in any manner with any of its pre-existing obligations.

 

		(c)	Each Party represents and warrants to the other that it is the owner of any Know-How to be used
or relied upon by such Party in performing its obligations under this Agreement.

 

		(d)	{***} represents and warrants that:

 

		(i)	it has not received any notice or claim that the use of its Know-How infringes any patent or intellectual
property rights of any third party in the Territory; and

 

		(ii)	to its actual knowledge, without
                                                              any independent investigation, the use of its Know-How will not
                                                              infringe any patent or intellectual property rights of any third
                                                              party in
                                                              the Territory.

 

{***}
Confidential portions of this exhibit have been redacted and filed separately with the Commission pursuant to a confidential treatment
request in accordance with Rule 24b-2 of the Securities Exchange Act of 1934, as amended

 

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		(e)	Elite represents and warrants that:

 

		(i)	It has not received any notice or claim that the use of its Know-How infringes any patent, or intellectual
property rights of any third party in the Territory; and

 

		(ii)	to its actual knowledge, without any independent investigation, the use of its Know-How will not
infringe any patent or intellectual property rights of any third party in the Territory.
	 	 	 

		(f)	Each Party hereby represents and warrants that it is not in violation of any law or regulation, nor is it aware of any violation
of any law or regulation by any other Person, which violation could reasonably be expected to adversely affect its performance
of its obligations hereunder, and except as otherwise contemplated hereby, such Party holds each of the licenses, permits, approvals
or authorizations necessary with respect to its current business and operations (and its rights and obligations contemplated hereby)
in compliance with all laws and regulations and maintains compliance with cGMP.

 

ARTICLE 6

 

INTELLECTUAL PROPERTY RIGHTS

 

		6.1	Each Party shall be responsible, at its own expense, for filing and
prosecuting patent applications relating to its Know-How, as it deems appropriate, and for paying maintenance fees on any patents
issuing there from, for the Term of this Agreement, with respect to Know-How owned by it. With respect to any Product developed
hereunder, {***} shall be responsible for filing and prosecuting the patents, defending the patents against infringement and defending
patent infringement claims brought by others. Each Party shall promptly render all necessary assistance reasonably requested by
the other Party in applying for and prosecuting patent applications in the US relating to such Party’s Know-How under this
Agreement. US Patent Law shall determine ownership of inventions.

 

ARTICLE 7

 

INDEMNIFICATION 

 

		7.1	Indemnification of {***}. Elite shall indemnify and hold harmless {***} and its officers, directors
and employees against and from any losses, damages, injuries, liabilities, exposure, claims, demands, settlement, judgments, awards,
fines, penalties, taxes, fees (including attorneys’ fees), charges or expenses (collectively, “Losses”) that
are suffered or incurred at any time by {***} or such persons, or to which {***} or such persons may otherwise become subject at
any time, and that become payable or arise out of or by virtue of, or relate to:

 

		(a)	Any
                                                               breach by Elite or default by Elite in the performance of, or any
                                                               failure on the part of Elite to observe, perform or abide by, any
                                                               restriction, covenant, obligation, representation, warranty or
                                                               other provision contained in this Agreement or

 

{***}
Confidential portions of this exhibit have been redacted and filed separately with the Commission pursuant to a confidential treatment
request in accordance with Rule 24b-2 of the Securities Exchange Act of 1934, as amended

 

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		(b)	Any injury or alleged injury to any person (including death) or to the property of any person not
a party hereto arising out of or alleging the negligence or intentional act or omission of Elite or its employees or agents in
performing of failing to perform their duties under the Agreement.

 

		7.2	Indemnification of Elite. {***} shall indemnify and hold harmless Elite and its officers, directors
or employees against and from any Losses that are suffered or incurred at any time by Elite or such persons, or to which Elite
or such persons may otherwise become subject at any time, and that become payable or arise out of or by virtue of, or relate to:

 

		(a)	Any breach by {***} or default by {***} in the performance of, or any failure on the part of {***}
to observe, perform or abide by, any restriction, covenant, obligation, representation, warranty or other provision contained in
this Agreement or

 

		(b)	Any injury or alleged injury to any person (including death) or to the property of any person not
a party hereto arising out of or alleging the negligence or intentional act or omission of {***} or its employees or agents, or
arising from the API of the Product.

 

		7.3	Notice and Legal Defense. Promptly after receipt by a Party hereunder of any claim or notice of
the commencement of any action, administrative or legal proceeding, or investigation as to which the indemnity provided for in
Section 7.1 and 7.2 hereof may apply, the Party seeking indemnification shall notify the indemnifying Party in writing of such
fact. The indemnifying Party shall assume the defense thereof; provided, however, that if the defendants in any such action include
both the Party seeking indemnification and the indemnifying Party and counsel for the Party seeking indemnification shall reasonably
conclude that there may be legal defenses available to such Party which are different from or additional to, or inconsistent with,
those available to the indemnifying Party, the Party seeking indemnification shall have the right to select separate counsel to
participate in the defense of such action on behalf of such Party seeking indemnification, at the indemnifying Party’s expense.

 

		7.4	LIMITATION OF DAMAGES. IN NO EVENT SHALL EITHER PARTY BE LIABLE TO THE OTHER PARTY FOR LOST PROFITS
(OTHER THAN AS ARE ORDINARILY ENCOMPASSED BY CONTRACT DAMAGES), LOSS OF GOODWILL, OR ANY SPECIAL, INDIRECT, CONSEQUENTIAL OR INCIDENTAL
DAMAGES, HOWEVER CAUSED, ARISING UNDER ANY THEORY OF LIABILITY. THIS LIMITATION SHALL APPLY EVEN IF A PARTY HAS BEEN ADVISED OF
THE POSSIBILITY OF SUCH DAMAGES, AND NOTWITHSTANDING ANY FAILURE OF ESSENTIAL PURPOSE OF ANY LIMITED REMEDY.

 

ARTICLE 8

 

TERM AND TERMINATION AND DEFAULT

 

		8.1	Term. This Agreement shall be effective from the Effective Date and shall continue for a five (5)
year term after the commercial launch of the Product, with one year automatic renewal unless one Party gives at least six (6) months
written notice in writing in advance of its intent not to renew.

 

{***} Confidential portions of this exhibit have been redacted
and filed separately with the Commission pursuant to a confidential treatment request in accordance with Rule 24b-2 of the Securities
Exchange Act of 1934, as amended

 

    	7

    	 

    

 

		8.2	Termination. Either Party shall have the option to terminate this Agreement prior to the Termination
Date upon the occurrence of a "Termination Event". A "Termination Event" shall mean: (a) the voluntary or involuntary
filing of a petition for bankruptcy, insolvency or placing in receivership of either Party; (b) a material breach of the terms
of this Agreement by one Party followed by written notice of such breach by the non-breaching Party followed by the failure of
the breaching Party to cure such breach within sixty (60) days of the date upon which written notice of breach was given in accordance
with Section 10.11; (c) adverse changes in the intellectual property environment wherein either Party, in its reasonable commercial
judgment believes a third party patent may be infringed upon by a Product; (d) upon six (6) months written notice to the other
Party, if in terminating Party’s reasonable judgment the Product ceases to be commercially viable.

 

		8.3	Termination Prior to Regulatory Approvals. Promptly upon termination of this Agreement as a result
of Elite’s Termination Event pursuant to sections 8.2(a) or (b) prior to obtaining Regulatory Approvals, {***} shall be entitled
to all of Elite’s Data or other materials reasonably necessary to enable {***} to complete the process of obtaining Regulatory
Approvals that have not yet been received, and in such case, the ownership rights of Elite and {***} with respect to the Product
shall remain in accordance with the provisions of this Agreement.
	 	 	 

		8.4	Events of Default. An event of default under this Agreement shall be deemed to exist upon the occurrence of anyone or more
of the following events:

 

		(a)	Failure by either Party hereto to perform fully, or comply fully, with, any material provision of this Agreement and such failure
continues for a period of sixty (60) days after receipt of written notice of such nonperformance or noncompliance;

 

		(b)	Failure of {***} to pay any amount due to Elite, which failure continues for a period of sixty (60) days after written notice
of such non-payment unless, and to the extent such non-payment is due to a good faith dispute concerning the amount owed.

 

		8.5	WARRANTY LIMITATION. EXCEPT AS EXPRESSLY SET FORTH IN SECTION 6, THE PARTIES MAKE NO WARRANTIES,
EXPRESSED OR IMPLIED, CONCERNING TECHNOLOGY, GOODS, SERVICES, RIGHTS OR THE MANUFACTURE AND SALE OF PRODUCTS, AND HEREBY DISCLAIM:
ANY OTHER WARRANTIES, INCLUDING WITHOUT LIMITATION ANY WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR USE OR PURPOSE OR
NONINFRINGEMENT WITH RESPECT TO ANY AND ALL OF THE FOREGOING.

 

ARTICLE 9

 

RESOLUTION OF DISPUTES; ARBITRATION

 

		9.1	The following dispute resolution process
                                                           shall apply to all disputes that arise under this Agreement (the “Dispute
                                                           Resolution Process”). In the event of any dispute under this
                                                           Agreement, the disputing Party shall provide written notice of the
                                                           dispute to the other Parties detailing such dispute. Within ten (10)
                                                           business days from the date of the written notice, the Parties will
                                                           meet at a mutually acceptable time and place or via phone or teleconference,
                                                           and thereafter as often as they reasonably deem necessary, to exchange
                                                           relevant information and to attempt
                                                           to resolve the dispute. If they are unable to resolve the dispute within
                                                           fifteen (15) business days of their first meeting, the matter shall
                                                           be referred to a senior board level manager of each of the Parties.

 

{***}
Confidential portions of this exhibit have been redacted and filed separately with the Commission pursuant to a confidential treatment
request in accordance with Rule 24b-2 of the Securities Exchange Act of 1934, as amended

 

    	8

    	 

    

 

		9.2	If
                                                           the senior board level managers of the Parties are unable to
                                                           resolve the matter within three (3) business days after notification
                                                           then, any Party to the dispute may initiate binding arbitration in
                                                           accordance with the Commercial Arbitration Rules of the American Arbitration
                                                           Association; such arbitration to be held in New Jersey on an expedited
                                                           basis.

 

		9.3	Expenses. Each Party shall be responsible for its own legal fees, travel and related expenses during
the Parties’ attempt to resolve the dispute.

 

		9.4	Other Rights. Nothing in this Section 9 shall be deemed to waive the right of any Party to apply
to a court of competent jurisdiction for a temporary restraining order, a preliminary injunction, or other equitable relief to
preserve the status quo or prevent irreparable harm.

 

ARTICLE
10

 

MISCELLANEOUS

 

		10.1	Recitals. The recitals are hereby incorporated by reference and made part of this Agreement.

 

		10.2	Survival. Except as expressly provided in this Agreement, expiration or termination of this Agreement
will not relieve the Parties of any obligation that accrued prior to such expiration or termination. Upon expiration or early termination
of this Agreement, all rights and obligations of the Parties shall cease, except as follows:

 

(a) The
obligations of confidentiality set forth in Section 10.5 of Article 10 shall survive;

 

(b) The
Parties obligations under Article 7 shall survive; and

 

(c) Any cause of action or
claim of {***} or Elite accrued or to accrue because of any breach or default by the other Party hereunder shall survive.

 

		10.3	Entire Agreement; Amendment. This Agreement, with all of the Exhibits, contains the entire understanding
of the Parties with respect to the subject matter hereof and supersedes all previous verbal and written agreements, representations
and warranties. This Agreement may be released, waived or modified only by written agreement signed by the Party against whom enforcement
of any release, waiver, modification, or other change is sought.

 

		10.4	Standard Forms. In ordering and delivering
                                                            the services or Product, {***} and Elite may employ their standard
                                                            forms, but nothing in those forms shall be construed to modify, amend
                                                            or supplement the terms of this Agreement and, in the case of any
                                                            conflict herewith, the terms of this Agreement shall govern and control.

 

		10.5	Confidentiality. Elite and {***} shall not use, except in connection with this Agreement, nor disclose
any information concerning the other Party's business or any proprietary information of the other Party, including but not limited
to, technical or scientific data, unpublished findings, biological material, know-how, specifications, processes, techniques, patent,
patent litigation strategies or tactics, trade secrets, algorithms, programs, designs, drawings, or formulae; and any engineering,
manufacturing, marketing, financial, litigation, intellectual property or business plan, confidential knowledge, data or other
similar information, whether received pursuant to this Agreement or otherwise ("Confidential Information") without the
prior written consent of such other Party. The obligation of non-disclosure referred to above shall not apply to:

 

{***} Confidential portions of this exhibit have been redacted
and filed separately with the Commission pursuant to a confidential treatment request in accordance with Rule 24b-2 of the Securities
Exchange Act of 1934, as amended

 

    	9

    	 

    

 

		(i)	Information which is known to the receiving Party or one of its Affiliates or independently developed
by the receiving Party or one of its Affiliates prior to the time of disclosure, in each case, to the extent evidenced by written
records;

 

		(ii)	Information disclosed to the receiving Party by a third party, which has a right to make such disclosure;

 

		(iii)	Information which is or becomes patented, published or otherwise part of the public domain as a
result of acts by the disclosing Party or a third person obtaining such information as a matter of right; or

 

		(iv)	Information which is required to be disclosed by order of the FDA or similar authority in other
countries or a court of competent jurisdiction; provided that the Parties shall use their best efforts to obtain confidential treatment
of such information by the court or agency.

 

		10.6	In addition to the provisions set forth in this agreement, the Mutual Confidentiality Agreement
entered into by the Parties dated as of August 11, 2011 is hereby incorporated herein by reference in its entirety.

 

		10.7	Force Majeure. Failure of any Party to perform its obligations under this Agreement as a result
of Force Majeure shall not subject such Party to any liability or place it in breach of any term or condition of this Agreement
to the other Party if such failure is caused by any cause beyond the reasonable control of such non-performing Party. The Party
prevented from performing its obligations or duties because of Force Majeure shall promptly notify the other Party hereto of the
occurrence and particulars of such Force Majeure and shall provide the other Party, from time to time, with its best estimate of
the duration of such Force Majeure and with notice of the termination thereof. The Party so affected shall use its best efforts
to avoid or remove such causes of nonperformance. Upon termination of Force Majeure, the performance of any suspended obligation
or duty shall promptly recommence. Neither Party shall be liable to the other Party for any direct, indirect, consequential, incidental,
special, punitive or exemplary damages arising out of or relating to the suspension or termination of any of its obligations or
duties under this Agreement by reason of the occurrence of Force Majeure. In the event that Force Majeure has occurred and is continuing
for a period of at least three (3) months, the other Party shall have the right to terminate this Agreement upon thirty (30) days
notice.

 

		10.8	Waiver. The failure of a Party to
                                                            enforce any breach
                                                            or provision of this Agreement shall not constitute a continuing waiver
                                                            of such breach or provision and such Party may at any time thereafter
                                                            act upon or enforce such breach or provisions of this Agreement. Any
                                                            waiver of breach executed by either Party shall affect only the specific
                                                            breach and shall not operate as a waiver of any subsequent or preceding
                                                            breach.

 

{***}
Confidential portions of this exhibit have been redacted and filed separately with the Commission pursuant to a confidential treatment
request in accordance with Rule 24b-2 of the Securities Exchange Act of 1934, as amended

 

    	10

    	 

    

 

		10.9	No Assignment. Elite may not delegate, subcontract, sublicense or otherwise transfer to a third
party its rights or obligations under this Agreement, except to any Affiliate of Elite, without the consent of {***}. {***} may
transfer its rights or obligations under this Agreement only to any Affiliate or to a successor of the portion of its business
that is the subject matter hereof. Subject to the foregoing, this Agreement shall inure to the benefit of and be binding upon the
Parties and their respective permitted successors and assigns.

 

		10.10	Severability. If a court of competent jurisdiction declares any clause or provision of this Agreement
invalid or unenforceable, such provision shall be severed and the remaining provisions of the Agreement shall continue in full
force and effect. The Parties shall use their best efforts to agree upon a valid and enforceable provision as a substitute for
the severed provision, taking into account the intent of this Agreement.

 

		10.11	Notices. Except as otherwise specifically provided, any notice or other documents to be given under
this Agreement shall be in writing and shall be deemed to have been duly given if sent by registered mail, nationally recognized
overnight delivery service or facsimile transmission to a party or delivered in person to a party at the address or facsimile number
set out below for such party or such other address as the party may from time to time designate by written notice to the other:

 

If to Elite, to:

 

Elite Laboratories,
Inc.

165 Ludlow
Avenue Northvale

New Jersey
07647

Attn: Chris
Dick, President

If to {***}
to:

 

{***}

{***}

Hong Kong
China

Attn: {***},
President

 

Any such notice provided pursuant
to this Section 10.11 shall be deemed to have been received by the addressee ten business days following the date of dispatch of
the notice or other document by registered mail or, where the notice or other document is sent by overnight delivery service, by
hand or is given by facsimile, simultaneously with the transmission or delivery. Notwithstanding the foregoing, any notice or other
document sent by overnight delivery service, by hand or by facsimile and received by the recipient after 5:30 p.m. local time (of
the recipient) shall be deemed to be delivered the next Business Day. To prove the giving of a notice or other document it shall
be sufficient to show that it was dispatched. Either party may change its address at which notice is to be received by written
notice provided pursuant to this Section 10.11.

 

		10.12	Governing Law; Dispute Resolution; Venue. Agreement shall be construed, and the rights of the Parties
determined, in accordance with the laws of the State of New Jersey without regard to conflict of law or choice of law rules. Any
controversy or claim pursuant to this Agreement or the breach thereof shall be settled in accordance with Article 9 of this Agreement.
Judgment upon the award rendered by the Arbitrator(s) may be entered in any court having jurisdiction thereof, including any non-U.S.
Court and both Parties agree that such non-U.S. Court shall apply judicial comity to any such judgment and enforcement thereof.
For purposes of dispute resolution, including litigation, each Party hereby irrevocably submits to the exclusive jurisdiction of
the state and federal courts sitting in Essex County, State of New Jersey, 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 or inconvenient venue for such proceeding. 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.

 

{***} Confidential portions of this exhibit have been redacted
and filed separately with the Commission pursuant to a confidential treatment request in accordance with Rule 24b-2 of the Securities
Exchange Act of 1934, as amended

 

    	11

    	 

    

 

		10.13	Independent Parties. The relationship of the Parties
under this Agreement is that of independent contractors. Neither Party shall be deemed to be the agent of the other, nor shall
the Parties be deemed to be partners or joint venturers, and neither is authorized to take any action binding upon the other.
Elite expressly acknowledges for itself, its employees, agents and subcontractors, that none of them are employees of {***} and
that none of them are entitled to participate in any benefit plans of {***}. Elite further acknowledges that none of its employees,
agents or subcontractors are eligible to participate in any benefit plans of {***}, even if it is later determined that the status
of any of them was that of an employee during the period of this engagement of Elite by {***}.

 

		10.14	Headings. The headings contained in this Agreement are included herein for reference and convenience
and shall not affect the meaning of the provisions of this Agreement.

 

		10.15	Publicity. Neither Party shall 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 Party 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, government
agencies, the U.S. Securities and Exchange Commission, or the rules of any stock exchange on which such Party's or its Affiliates'
securities trade; provided, however, the Party making such disclosure shall 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 shall coordinate
with one another regarding the timing, form and content of such disclosure.

 

		10.16	No Third Party Beneficiaries. Except as specifically stated to the contrary herein, no person or
entity not a Party to this Agreement, including any employee of any Party to this Agreement, shall have or acquire any rights by
reason of this Agreement, nor shall either Party have any obligations or liabilities to such other person or entity by reason of
this Agreement.

 

		10.17	Remedies Cumulative. Except as otherwise provided herein, any and all remedies herein expressly
conferred upon a Party shall be deemed cumulative with and not exclusive of any other remedy conferred hereby, or by law or equity
upon such Party, and the exercise by a Party of any one remedy shall not preclude the exercise of any other remedy.

 

		10.18	Further Assurances. Each Party
                                                             shall execute and deliver such additional instruments and other documents
                                                             and use commercially reasonable efforts to take or cause to be taken,
                                                             all actions and to do, or cause to be done, all things necessary
                                                             under applicable law to consummate the transactions contemplated
                                                             hereby.

 

{***}
Confidential portions of this exhibit have been redacted and filed separately with the Commission pursuant to a confidential treatment
request in accordance with Rule 24b-2 of the Securities Exchange Act of 1934, as amended

 

    	12

    	 

    

 

		10.19	Counterparts; Facsimile, Electronic Signatures. This Agreement may be executed in counterparts,
each of which shall be deemed an original, and all of which together shall constitute a single agreement. This Agreement may be
executed by facsimile signatures or by a pdf (or other similar format) copy of the signature delivered by e-mail, which signatures
shall have the same force and effect as original signatures.

 

		10.20	drafting. The Parties have participated jointly in the negotiation and drafting of this Agreement.
In the event an ambiguity or question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly
by the Parties and no presumption or burden of proof shall arise favoring or disfavoring any Party by virtue of the authorship
of any of the provisions of this Agreement.

 

		10.21	Currency. Wherever a monetary currency is indicated throughout this Agreement, that currency shall
be United States Dollars, unless otherwise clearly indicated.

 

		10.22	Days. Wherever reference is made to days, working days or any measurement of time in days, calendar
days shall be used regardless of weekends and holidays. Wherever reference is made to “Business Days” such reference
shall exclude weekend days and dates which are official government holidays in New Jersey or Hong Kong.

 

(Signature Page follows)

 

{***} Confidential portions of this exhibit have been redacted
and filed separately with the Commission pursuant to a confidential treatment request in accordance with Rule 24b-2 of the Securities
Exchange Act of 1934, as amended

 

    	13

    	 

    

 

IN WITNESS WHEREOF, the Parties have caused this
Agreement to be executed by their duly authorized representatives as of the day and year first above written.

 

 

	{***}	 	ELITE PHARMACEUTICALS, INC.
	 	 	 
	By:	 	 	 	By:	 
	Name:	{***}	Name:	 	 	Chris C. Dick
	Title:	President	Title:	 	 	President
	Date:	 	 	 	 	Date:

 

{***} Confidential portions of this exhibit have been redacted
and filed separately with the Commission pursuant to a confidential treatment request in accordance with Rule 24b-2 of the Securities
Exchange Act of 1934, as amended

 

    	14

    	 

    

 

Exhibit A

 

PRODUCT

Development Activities

 

	 	 	 	 	Responsibility
	#	 	Activities	 	Elite	 	{***}
	 	 	Formulation Development	 	 	 	 
	1	 	-  Formula	 	 	 	X
	 	 	-  Trials	 	X	 	 
	 	 	 	 	 	 	 
	 	 	Analytical	 	 	 	 
	2	 	-  Validated Test Methods	 	 	 	X
		 	-  Validated Dissolution Method	 		 	X
	 	 	-  Transfer and Re-Validation	 	X	 	 
	 	 	 	 	 	 	 
		 	Manufacturing of Pivotal Batch	 	 	 	 
	3	 	(1 batch of {***} yield)	 	X	 	 
	 	 	 	 	 	 	 
	 	 	Stability Studies for Pivotal Batch	 	 	 	 
	4	 	-  Accelerated	 	X	 	 
	 	 	-  Room Temperature	 	X	 	 
	 	 	 	 	 	 	 
	5	 	Biostudies	 	 	 	X
	 	 	 	 	 	 	 
	 	 	CMC Section	 	 	 	 
	6	 	-  Compile	 	X	 	 
	 	 	-  Submission	 	 	 	X

 

    	 

    	 

    

 

Exhibit B

 

Payments for Development (CMC Section)
of 

PRODUCT

 

		1.	For the development of Product, (CMC Section) as per this agreement and its exhibits, {***} shall
pay Elite the followings:

 

a- {***} upon signing

 

b- {***} upon completion and testing of the Pivotal
batch ({***})

 

c- {***} upon completion of accelerated stability
study

 

d- {***} upon completion of CMC section for submission

 

Exhibit C

 

PRODUCT

Product Formulation SpecificationsTHE SECURITIES ISSUABLE UPON EXERCISE OF
THIS WARRANT HAVE 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 TO THE TRANSFEROR TO SUCH EFFECT, THE
SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY.

 

MANDALAY DIGITAL GROUP,
INC. 

 

COMMON STOCK WARRANT 

 

Effective Date: March 19, 2012

Documentation Date: May 16, 2012

 

Mandalay Digital Group,
Inc., a Delaware corporation (the “Company”) hereby certifies that, for value received,        (together with his/its registered assigns, “Holder”), is entitled
to purchase from the Company up to        shares of Common Stock (each such share, a “Warrant Share” and all
such shares, the “Warrant Shares”), at any time and from time to time from and after March 19, 2013 (the “First
Exercise Date”), through and including March 19, 2017 (the “Expiration Date”), subject to the following
terms and conditions set forth below.

 

The parties agree and
acknowledge that this Warrant (i) is being documented and signed on the Documentation Date listed above but is effective and issued
as of the Effective Date listed above and (ii) fully satisfies all agreements between the parties that called for the issuance
of a warrant in connection with equity and/or debt investments made by the Holder in the Company.

 

1.             Definitions.
As used in this Warrant, the following terms shall have the respective definitions set forth in this Section 1.

 

“Business
Day” means any day except Saturday, Sunday and any day that is a federal legal holiday in the United States or a day
on which banking institutions in the State of California are authorized or required by law or other government action to close.

 

“California
Courts” means the state and federal courts sitting in Los Angeles County, California.

 

“Common Stock”
means the common stock of the Company, par value $0.0001 per share, and any securities into which such common stock may hereafter
be reclassified.

 

    	 

    	 

    

  

“Exercise
Price” means $0.70, subject to adjustment in accordance with Section 9.

 

“Fundamental
Transaction” means any of the following: (1) the Company effects any merger or consolidation of the Company with or into
another Person, (2) the Company effects any sale of all or substantially all of its assets in one or a series of related transactions,
(3) any tender offer or exchange offer (whether by the Company or another Person) is completed pursuant to which holders of Common
Stock are permitted to tender or exchange their shares for other securities, cash or property, or (4) the Company effects any reclassification
of the Common Stock or any compulsory share exchange pursuant to which the Common Stock is effectively converted into or exchanged
for other securities, cash or property.

 

“Person”
means any entity, corporation, company, association, joint venture, joint stock company, partnership (whether general, limited
or limited liability), trust, limited liability company, real estate investment trust, organization, individual (including any
personal representative, executor or heir of a deceased individual), nation, state, government (including any agency, department,
bureau, board, division or instrumentality thereof), trustee, receiver or liquidator.

 

“Trading Day”
means (i) a day on which the Common Stock is traded on a Trading Market (other than the OTC Bulletin Board), or (ii) if the
Common Stock is not listed on a Trading Market (other than the OTC Bulletin Board), a day on which the Common Stock is traded in
the over-the-counter market, as reported by the OTC Bulletin Board, or (iii) if the Common Stock is not quoted on any Trading Market,
a day on which the Common Stock is quoted in the over-the-counter market as reported by the highest tier of the OTC Markets on
which the Common Stock is then quoted (or any similar organization or agency succeeding to its functions of reporting prices);
provided, that in the event that the Common Stock is not listed or quoted as set forth in (i), (ii) and (iii) hereof, then Trading
Day shall mean a Business Day.

 

“Trading Market”
means any of the following markets or exchanges on which the Common Stock is listed or quoted for trading on the date in question:
the NYSE AMEX, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market, the New York Stock Exchange
or the OTC Bulletin Board (or any successors to any of the foregoing).

 

2.
            Registration of Warrant. The Company shall register this Warrant upon
records to be maintained by the Company for that purpose (the “Warrant Register”), in the name of the record
Holder hereof from time to time. The Company may deem and treat the registered Holder of this Warrant as the absolute owner hereof
for the purpose of any exercise hereof or any distribution to the Holder, and for all other purposes, absent actual notice to
the contrary.

 

3.
            Registration of Transfers. The Company shall register the transfer of
any portion of this Warrant in the Warrant Register, upon surrender of this Warrant, with the Form of Assignment attached hereto
duly completed and signed, to the Company at its address specified herein. Upon any such registration or transfer, a new Warrant
to purchase Common Stock, in substantially the form of this Warrant (any such new Warrant, a “New Warrant”),
evidencing the portion of this Warrant so transferred shall be issued to the transferee and a New Warrant evidencing the remaining
portion of this Warrant not so transferred, if any, shall be issued to the transferring Holder. The acceptance of the New Warrant
by the transferee thereof shall be deemed the acceptance by such transferee of all of the rights and obligations of a holder of
a Warrant.

 

    	2

    	 

    

 

4.
          Exercise and Duration of Warrants. This Warrant shall be exercisable by
the registered Holder at any time and from time to time from and after the First Exercise Date through and including the Expiration
Date. At 5:00 p.m., Los Angeles time on the Expiration Date, the portion of this Warrant not exercised prior thereto shall be
and become void and of no value. The Company may not call or redeem any portion of this Warrant without the prior written consent
of the affected Holder.

 

5.           Delivery
of Warrant Shares.

 

(a)
       To effect exercises hereunder, the Holder shall not be required to physically
surrender this Warrant unless the aggregate Warrant Shares represented by this Warrant is being exercised. Upon delivery of the
Exercise Notice (in the form attached hereto) to the Company (with the attached Warrant Shares Exercise Log) at its address for
notice set forth herein and upon payment of the Exercise Price multiplied by the number of Warrant Shares that the Holder intends
to purchase hereunder, the Company shall promptly issue and deliver to the Holder, a certificate for the Warrant Shares issuable
upon such exercise, which shall bear a restricted stock legend under the Securities Act, similar to the one on the face of this
Warrant, unless (i) such exercise is pursuant to Section 10(b) and (ii) as of the Date of Exercise the Holder is not, and has not
been for the previous 90 days, an “affiliate” of the Company (as defined in Rule 144 under the Securities Act). A “Date
of Exercise” means the date on which the Holder shall have delivered to the Company: (i) the Exercise Notice (with the
Warrant Exercise Log attached to it), appropriately completed and duly signed and (ii) if such Holder is not utilizing the cashless
exercise provisions set forth in the Warrant, payment of the Exercise Price for the number of Warrant Shares so indicated by the
Holder to be purchased.

 

(b)
       The Company’s obligations to issue and deliver Warrant Shares in accordance
with the terms hereof are absolute and unconditional, irrespective of any action or inaction by the Holder to enforce the same,
any waiver or consent with respect to any provision hereof, the recovery of any judgment against any Person or any action to enforce
the same, or any setoff, counterclaim, recoupment, limitation or termination, or any breach or alleged breach by the Holder or
any other Person of any obligation to the Company or any violation or alleged violation of law by the Holder or any other Person,
and irrespective of any other circumstance which might otherwise limit such obligation of the Company to the Holder in connection
with the issuance of Warrant Shares. Nothing herein shall limit a Holder’s right to pursue any other remedies available to
it hereunder, at law or in equity including, without limitation, a decree of specific performance and/or injunctive relief with
respect to the Company’s failure to timely deliver certificates representing Warrant Shares upon exercise of the Warrant
as required pursuant to the terms hereof.

 

6.
          Charges, Taxes and Expenses. Issuance and
delivery of Warrant Shares upon exercise of this Warrant shall be made without charge to the Holder for any issue or transfer
tax, withholding tax, transfer agent fee or other incidental tax or expense in respect of the issuance of such certificates, all
of which taxes and expenses shall be paid by the Company; provided, however, that the Company shall not be required to pay any
tax which may be payable in respect of any transfer involved in the registration of any certificates for Warrant Shares or Warrants
in a name other than that of the Holder. The Holder shall be responsible for all other tax liability that may arise as a result
of holding or transferring this Warrant or receiving Warrant Shares upon exercise hereof.

 

    	3

    	 

    

 

7.
          Replacement of Warrant. If this Warrant
is mutilated, lost, stolen or destroyed, the Company shall issue or cause to be issued in exchange and substitution for and upon
cancellation hereof, or in lieu of and substitution for this Warrant, a New Warrant, but only upon receipt of evidence reasonably
satisfactory to the Company of such loss, theft or destruction and customary and reasonable indemnity (which shall not include
a surety bond), if requested. Applicants for a New Warrant under such circumstances shall also comply with such other reasonable
regulations and procedures and pay such other reasonable third-party costs as the Company may prescribe. If a New Warrant is requested
as a result of a mutilation of this Warrant, then the Holder shall deliver such mutilated Warrant to the Company as a condition
precedent to the Company’s obligation to issue the New Warrant.

 

8.
         Reservation of Warrant Shares. The Company covenants that it
will at all times reserve and keep available out of the aggregate of its authorized but unissued and otherwise unreserved Common
Stock, solely for the purpose of enabling it to issue Warrant Shares upon exercise of this Warrant as herein provided, the number
of Warrant Shares which are then issuable and deliverable upon the exercise of this entire Warrant (taking into account the adjustments
and restrictions of Section 9). The Company covenants that all Warrant Shares so issuable and deliverable shall, upon issuance
and the payment of the applicable Exercise Price in accordance with the terms hereof, be duly and validly authorized, issued and
fully paid and nonassessable.

 

9.
          Certain Adjustments. The Exercise Price
and number of Warrant Shares issuable upon exercise of this Warrant are subject to adjustment from time to time as set forth in
this Section 9.

 

(a)
       Stock Dividends and Splits. If the Company (i) pays a stock dividend on
its Common Stock or otherwise makes a distribution on any class of capital stock that is payable in shares of Common Stock, (ii)
subdivides outstanding shares of Common Stock into a larger number of shares, or (iii) combines outstanding shares of Common Stock
into a smaller number of shares, then in each such case the Exercise Price shall be multiplied by a fraction of which the numerator
shall be the number of shares of Common Stock outstanding immediately before such event and of which the denominator shall be
the number of shares of Common Stock outstanding immediately after such event. Any adjustment made pursuant to clause (i) of this
paragraph shall become effective immediately after the record date for the determination of stockholders entitled to receive such
dividend or distribution, and any adjustment pursuant to clause (ii) or (iii) of this paragraph shall become effective immediately
after the effective date of such subdivision or combination.

 

    	4

    	 

    

 

(b)
       Fundamental Transactions. If, at any time while this Warrant is outstanding
there is a Fundamental Transaction, then the Holder shall have the right thereafter to receive, upon exercise of this Warrant,
the same amount and kind of securities, cash or property as it would have been entitled to receive upon the occurrence of such
Fundamental Transaction if it had been, immediately prior to such Fundamental Transaction, the holder of the number of Warrant
Shares then issuable upon exercise in full of this Warrant (the “Alternate Consideration”). For purposes of
any such exercise, the determination of the Exercise Price shall be appropriately adjusted to apply to such Alternate Consideration
based on the amount of Alternate Consideration issuable in respect of one share of Common Stock in such Fundamental Transaction,
and the Company shall apportion the Exercise Price among the Alternate Consideration in a reasonable manner reflecting the relative
value of any different components of the Alternate Consideration. If holders of Common Stock are given any choice as to the securities,
cash or property to be received in a Fundamental Transaction, then the Holder shall be given the same choice as to the Alternate
Consideration it receives upon any exercise of this Warrant following such Fundamental Transaction. The terms of any agreement
pursuant to which a Fundamental Transaction is effected shall include terms requiring any such successor or surviving entity to
comply with the provisions of this paragraph (b) and insuring that the Warrant (or any such replacement security) will be similarly
adjusted upon any subsequent transaction analogous to a Fundamental Transaction.

 

(c)
       Number of Warrant Shares. Simultaneously with any adjustment to the Exercise
Price pursuant to this Section 9, the number of Warrant Shares that may be purchased upon exercise of this Warrant shall be increased
or decreased proportionately, so that after such adjustment the aggregate Exercise Price payable hereunder for the adjusted number
of Warrant Shares shall be the same as the aggregate Exercise Price in effect immediately prior to such adjustment.

 

(d)
       Calculations. All calculations under this Section 9 shall be made to the
nearest cent or the nearest 1/100th of a share, as applicable. The number of shares of Common Stock outstanding at
any given time shall not include shares owned or held by or for the account of the Company, and the disposition of any such shares
shall be considered an issue or sale of Common Stock.

 

(e)
       Notice of Adjustments. Upon the occurrence of each adjustment pursuant
to this Section 9, the Company at its expense will promptly compute such adjustment in accordance with the terms of this Warrant
and prepare a certificate setting forth such adjustment, including a statement of the adjusted Exercise Price and adjusted number
or type of Warrant Shares or other securities issuable upon exercise of this Warrant (as applicable), describing the transactions
giving rise to such adjustments and showing in detail the facts upon which such adjustment is based. Upon written request, the
Company will promptly deliver a copy of each such certificate to the Holder and to the Company’s Transfer Agent.

 

(f)
       Notice of Corporate Events. If the Company (i) declares a dividend or
any other distribution of cash, securities or other property in respect of its Common Stock, including without limitation any
granting of rights or warrants to subscribe for or purchase any capital stock of the Company or any subsidiary of the Company,
(ii) authorizes or approves, enters into any agreement contemplating or solicits stockholder approval for any Fundamental Transaction
or (iii) authorizes the voluntary dissolution, liquidation or winding up of the affairs of the Company, then the Company shall
deliver to the Holder a notice describing the material terms and conditions of such transaction (but only to the extent such disclosure
would not result in the dissemination of material, non-public information to the Holder) at least 10 calendar days prior to the
applicable record or effective date on which a Person would need to hold Common Stock in order to participate in or vote with
respect to such transaction, and the Company will take all steps reasonably necessary in order to insure that the Holder is given
the practical opportunity to exercise this Warrant prior to such time so as to participate in or vote with respect to such transaction;
provided, however, that the failure to deliver such notice or any defect therein shall not affect the validity of the corporate
action required to be described in such notice.

 

    	5

    	 

    

 

10.
        Payment of Exercise Price. The Holder may pay the Exercise
Price in one of the following manners:

 

(a)
        Cash Exercise. The Holder may deliver immediately available funds;
or

 

(b)
       Cashless Exercise. If an Exercise Notice is delivered at a time when a
registration statement permitting the Holder to resell the Warrant Shares is not then effective or the prospectus forming a part
thereof is not then available to the Holder for the resale of the Warrant Shares, then the Holder may notify the Company in an
Exercise Notice of its election to utilize cashless exercise, in which event the Company shall issue to the Holder the number
of Warrant Shares determined as follows:

 

X = Y [(A-B)/A]

 

where:

 

X = the number of Warrant
Shares to be issued to the Holder.

 

Y = the number of Warrant
Shares with respect to which this Warrant is being exercised.

 

A = the average of the closing
prices for the 30 Trading Days immediately prior to (but not including) the Date of Exercise.

 

B = the Exercise Price.

 

For purposes of Rule 144 promulgated under
the Securities Act, it is intended, understood and acknowledged that the Warrant Shares issued in a cashless exercise transaction
shall be deemed to have been acquired by the Holder, and the holding period for the Warrant Shares shall be deemed to have commenced,
on the date this Warrant was originally issued.

 

11.
        No Fractional Shares. No fractional shares of Warrant
Shares will be issued in connection with any exercise of this Warrant. In lieu of any fractional shares which would, otherwise
be issuable, the Company shall pay cash equal to the product of such fraction multiplied by the closing price of one Warrant Share
as reported by the applicable Trading Market on the Date of Exercise.

 

    	6

    	 

    

 

12.
        Notices. Any and all notices or other communications
or deliveries hereunder (including, without limitation, any Exercise Notice) 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 prior to 5:00 p.m. (Los Angeles time) on a Trading Day, (ii) the next Trading Day after the date
of transmission, if such notice or communication is delivered via facsimile at the facsimile number specified in this Section
on a day that is not a Trading Day or later than 5:00 p.m. (Los Angeles time) on any Trading Day, (iii) the Trading 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 the Company, to Mandalay Digital
Group, Inc., 4751 Wilshire Blvd., 3rd Floor, Los Angeles, California 90010, Attn: Chief Executive Officer, or to Facsimile No.:
(323) 549-9824 (or such other address as the Company shall indicate in writing in accordance
with this Section), or (ii) if to the Holder, to the address or facsimile number appearing on the Warrant Register or such other
address or facsimile number as the Holder may provide to the Company in accordance with this Section.

 

13.
        Warrant Agent. The Company shall serve as warrant agent
under this Warrant. Upon 10 days’ notice to the Holder, the Company may appoint a new warrant agent. Any corporation into
which the Company or any new warrant agent may be merged or any corporation resulting from any consolidation to which the Company
or any new warrant agent shall be a party or any corporation to which the Company or any new warrant agent transfers substantially
all of its corporate trust or shareholders services business shall be a successor warrant agent under this Warrant without any
further act. Any such successor warrant agent shall promptly cause notice of its succession as warrant agent to be mailed (by
first class mail, postage prepaid) to the Holder at the Holder’s last address as shown on the Warrant Register.

 

14.
        Investor Representations.

 

(a)
       Holder hereby confirms that this Warrant and any shares of Common Stock or other
securities of the Company issued upon exercise hereof (collectively, “Securities”) are or will be acquired for
investment for the Holder’s own account, not as a nominee or agent, and not with a view to the resale or distribution of
any part thereof, and that the Holder has no present intention of selling, granting any participation in, or otherwise distributing
the same. The Holder further represents that it does not presently have any contract, undertaking, agreement or arrangement with
any person to sell, transfer or grant participations to such person or to any third person, with respect to any of the Securities.

 

(b)
       Holder is, and upon any issuance of Securities will be, an “accredited investor”
as defined in Rule 501(a) of Regulation D promulgated under the Securities Act.

 

(c)
       Holder has the requisite knowledge and experience in financial and business matters
to assess the relative merits and risks of investment in the Securities and has had a full opportunity to discuss with the Company
all material aspects of investment in the Securities, including the opportunity to ask, and to receive answers to its full satisfaction,
regarding such questions as it has deemed necessary to evaluate such investment.

 

(d)
       Except to the extent specifically set forth herein, the Company is making no representations
and warranties with respect to the Company or the Securities.

 

    	7

    	 

    

 

15.         Miscellaneous.

 

(a)
       This Warrant shall be binding on and inure to the benefit of the parties hereto
and their respective successors and assigns. Subject to the preceding sentence, nothing in this Warrant shall be construed to give
to any Person other than the Company and the Holder any legal or equitable right, remedy or cause of action under this Warrant.
This Warrant may be amended only in writing signed by the Company and the Holder and their successors and assigns.

 

(b)
       All questions concerning the construction, validity, enforcement and interpretation
of this Warrant shall be governed by and construed and enforced in accordance with the internal laws of the State of California,
without regard to the principles of conflicts of law thereof. Each party agrees that all legal proceedings concerning the interpretations,
enforcement and defense of this Warrant and the transactions herein contemplated (“Proceedings”) (whether brought
against a party hereto or its respective affiliates, employees or agents) shall be commenced exclusively in the California Courts.
Each party hereto hereby irrevocably submits to the exclusive jurisdiction of the California Courts for the adjudication of any
dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein, and hereby irrevocably
waives, and agrees not to assert in any Proceeding, any claim that it is not personally subject to the jurisdiction of any California
Court, or that such Proceeding has been commenced in an improper or inconvenient forum. Each party hereto hereby irrevocably waives
personal service of process and consents to process being served in any such 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 Warrant 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. Each party hereto hereby
irrevocably waives, to the fullest extent permitted by applicable law, any and all right to trial by jury in any legal proceeding
arising out of or relating to this Warrant or the transactions contemplated hereby. If either party shall commence a Proceeding
to enforce any provisions of this Warrant, then the prevailing party in such Proceeding shall be reimbursed by the other party
for its attorney’s fees and other costs and expenses incurred with the investigation, preparation and prosecution of such
Proceeding.

 

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

 

(d)
       In case any one or more of the provisions of this Warrant shall be invalid or
unenforceable in any respect, the validity and enforceability of the remaining terms and provisions of this Warrant 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 Warrant.

 

(e)
       Prior to exercise of this Warrant, the Holder hereof shall not, by reason of being
a Holder, be entitled to any rights of a stockholder with respect to the Warrant Shares.

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK,
SIGNATURE PAGE FOLLOWS]

 

    	8

    	 

    

  

IN WITNESS WHEREOF,
the Company has caused this Warrant to be duly executed by its authorized officer as of the date first indicated above.

 

	 	MANDALAY DIGITAL GROUP, INC. 
	 	 
	 	By:	/s/ Peter Adderton
	 	Name:	Peter Adderton
	 	Title:	CEO

 

	AGREED AND ACKNOWLEDGED:
	 
	 
	 
	 

 

Signature Page to Warrant

 

    	 

    	 

    

 

EXERCISE NOTICE 

MANDALAY DIGITAL GROUP, INC.

WARRANT EFFECTIVE MARCH 19, 2012

 

The undersigned Holder hereby irrevocably
elects to purchase _____________ shares of Common Stock pursuant to the above referenced Warrant. Capitalized terms used herein
and not otherwise defined have the respective meanings set forth in the Warrant.

 

(1)        The
undersigned Holder hereby exercises its right to purchase _________________ Warrant Shares pursuant to the Warrant.

 

(2)        The
Holder intends that payment of the Exercise Price shall be made as (check one):

 

      £ “Cash Exercise” under
Section 10

 

      £ “Cashless Exercise” under
Section 10

 

(3)
       If the holder has elected a Cash Exercise, the holder shall pay the sum of
$____________ to the Company in accordance with the terms of the Warrant.

 

(4)        Pursuant
to this Exercise Notice, the Company shall deliver to the holder _______________ Warrant Shares in accordance with the terms of
the Warrant.

 

	Dated:___________________	,_________	Name of Holder:
	 	 	 
	 	 	(Print)	 
	 	 	 
	 	 	By:	 
	 	 	Name:	 
	 	 	Title:	 
	 	 	 
	 	 	(Signature must conform in all respects to name of holder as specified on the
    face of the Warrant)
	 	 	

 

    	 

    	 

    

 

Warrant Shares Exercise Log

 

	Date	 	
        Number of Warrant

        Shares Available to be

        Exercised
	 	
        Number of Warrant Shares

        Exercised
	 	
        Number of

        Warrant Shares

        Remaining to

        be Exercised

	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

 

    	 

    	 

    

 

MANDALAY DIGITAL
GROUP, INC. 

WARRANT ORIGINALLY
ISSUED MARCH 19, 2012 

WARRANT 

 

FORM OF ASSIGNMENT

 

[To be completed and signed only
upon transfer of Warrant]

 

FOR VALUE RECEIVED,
the undersigned hereby sells, assigns and transfers unto ________________________________ the right represented by the above-captioned
Warrant to purchase ____________ shares of Common Stock to which such Warrant relates and appoints ________________ attorney to
transfer said right on the books of the Company with full power of substitution in the premises.

 

Dated: _______________, ____

 

	 	 
	 	(Signature must conform in all respects to name of
	 	holder as specified on the face of the Warrant)
	 	 
	 	 
	 	Address of Transferee
	 	 
	 	 
	 	 
	 	 
	 	 
	In the presence of:

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