Document:

ex10_2.htm

    Exhibit
      10.2

    

    THE
      SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES
      SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”).  THESE
      SECURITIES MAY BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY (A)
      TO
      THE COMPANY, (B) OUTSIDE THE UNITED STATES IN COMPLIANCE WITH RULE 904 OF
      REGULATION S UNDER THE SECURITIES ACT, (C) IN COMPLIANCE WITH RULE 144 OR 144A
      THEREUNDER, IF AVAILABLE, AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES
      LAWS, (D) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT, OR (E) IN A
      TRANSACTION THAT DOES NOT REQUIRE REGISTRATION UNDER THE SECURITIES ACT OR
      ANY
      APPLICABLE STATE SECURITIES LAWS, AND THE HOLDER HAS, PRIOR TO SUCH SALE,
      FURNISHED TO THE COMPANY AN OPINION OF COUNSEL OR OTHER EVIDENCE OF EXEMPTION,
      IN EITHER CASE REASONABLY SATISFACTORY TO THE COMPANY.  HEDGING
      TRANSACTIONS INVOLVING THESE SECURITIES MAY NOT BE CONDUCTED UNLESS IN
      COMPLIANCE WITH THE U.S. SECURITIES ACT.

    

     

     

     AMENDED
      AND RESTATED 17% SECURED PROMISSORY NOTE

     

    AMERICA
      WEST RESOURCES, INC

     

     

    DUE
      October 9, 2009

     

    

    
      	
              Original
                Issue Date: October 9, 2008

            	
              US
                $1,866,666.66

            

    

    

    This
      Amended and Restated Secured Promissory Note  (the “Note”) amends and
      restates in it entirety the 17% Secured  Promissory Note due October
      9, 2009 issued by America West
      Resources, Inc, a Nevada corporation (the “Company”),
      in favor
      of Denly ACI Partners,
      Ltd., a Texas limited partnership (together with its permitted
      successors
      and assigns, the “Holder”), in
      accordance with exemptions from registration
      under the Securities Act of 1933, as amended (the “Securities Act”) and
      pursuant to the terms and provisions and in reliance upon the representations
      and warranties set forth in that certain Loan Agreement (as amended, modified,
      restated and replaced from time to time, the "Loan Agreement") of
      even date among the Company, the Holder and _____________________ (together
      with its permitted successors
      and assigns, the “Other
      Holder”).  Capitalized
      terms
      used herein which are not otherwise defined are used with the same meanings
      given such terms in the Loan Agreement.

     

    Article
      I. 

    
    

     

    Section
      1.01                                
 Principal
      and
      Interest.  For value received, the Company hereby promises to
      pay to the order of the Holder, in lawful money of the United States of America
      and in immediately available funds the principal sum of ___________________________,
      or the outstanding principal amount advanced hereunder, whichever is
      the
      lesser, and accrued but unpaid interest on the earliest of (i) September 17,
      2009 (the “Maturity
      Date”), or (ii) the occurrence of an Event of Default (as defined in
Section 3.01)
      or (iii) the occurrence of a Redemption Event (as defined in

     

    
      
        
           

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    Section
      1.02), with
      partial payments being required upon each Partial Redemption Event (as defined
      in Section
      1.02).

     

    (a) The
      unpaid principal balance of this Note shall accrue interest at the rate of
      10%
      per annum until the Maturity Date or such earlier date as the same may become
      payable hereunder.

     

    (b) On
      the
      earlier of a Redemption Event and the Maturity Date, the entire unpaid principal
      and accrued interest shall be paid to the Holder.

     

    (c) Except
      as
      otherwise set forth in this Note, the Company may not prepay any portion of
      the
      principal amount of this Note without the prior written consent of the
      Holder.

     

    Section
      1.02                                
 Redemption.  Upon
      the closing of (i) any debt financing of $13,000,000 or more either by the
      Company or its subsidiaries or the last of any such debt financings which taken
      together equal $13,000,000 or more either by the Company or its subsidiaries,
      or
      (ii) any equity financing of $10,000,000 or more by the Company or its
      subsidiaries or the last of any such equity financings which taken together
      equal $10,000,000 or more either by the Company or its subsidiaries, or (iii)
      the last of any combination of debt financings and equity financings either
      by
      the Company or its subsidiaries which taken together equal $10,000,000.00 or
      more (a “Redemption
      Event”), the Company shall pay in full all of the principal and interest
      under then accrued and unpaid on this Note.  Upon the closing of an
      equity financing (or a series of equity financings) less than $10,000,000 by
      the
      Company or its subsidiaries (a “Partial Redemption
      Event”), the Company shall pay an amount equal to 25% of the proceeds of
      the financing or series of financings and such amount shall be applied first
      to
      accrued interest then unpaid and next to principal of this Note.  The
      foregoing notwithstanding, the closing of $10,000,000 or less in equity that
      occurs on or before December 31, 2008, shall not result in a Redemption Event
      or
      Partial Redemption Event and shall not be aggregated with subsequent equity
      financings for purposes of calculating a Partial Redemption Event.

     

    Section
      1.03                                
 Absolute
      Obligation/Ranking.  Except as expressly provided herein, no
      provision of this Note shall alter or impair the obligation of the Company,
      which is absolute and unconditional, to pay the principal of, and interest
      on,
      this Note at the time, place, and rate, and in the coin or currency, herein
      prescribed.  This Note is a direct debt obligation of the
      Company.  This Note ranks pari passu with all
      other Notes now or hereinafter issued by the Company pursuant to the provisions
      of the Loan Agreement, upon the same terms and conditions of this Note (the
      “Other
      Notes”).

     

    Section
      1.04                                
 Different
      Denominations.  This Note is exchangeable for an equal
      aggregate principal amount of Notes of different authorized denominations,
      as
      requested by the Holder surrendering the same.  No service charge will
      be made for such registration of transfer or exchange.

     

    Section
      1.05                                
 Investment
      Representations. Holder hereby makes the following representations and
      warranties:

     

    (a) Investment
      Purpose.  Holder is acquiring the Note, and the Bridge Shares
      for its own account for investment only and not with a view towards, or for
      resale in connection with,

     

    
      
        
           

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    (b) the
      public sale or distribution thereof, except pursuant to sales registered or
      exempted under the Securities Act.  The Holder agrees not to sell,
      hypothecate or otherwise transfer the Holder’s securities unless such securities
      are registered under the federal and applicable state securities laws or unless,
      in the opinion of counsel satisfactory to the Company, an exemption from such
      law is available.

     

    (c) Accredited
      Investor
      Qualifications.  The Holder (i) if a natural person, represents
      that the Holder has reached the age of 21 and has full power and authority
      to
      execute and deliver this Agreement and all other related agreements or
      certificates and to carry out the provisions hereof and thereof; (ii) if a
      corporation, partnership, or limited liability company or partnership, or
      association, joint stock company, trust, unincorporated organization or other
      entity, represents that such entity was not formed for the specific purpose
      of
      acquiring the Note, such entity is duly organized, validly existing and in
      good
      standing under the laws of the state of its organization, the consummation
      of
      the transactions contemplated hereby is authorized by, and will not result
      in a
      violation of state law or its charter or other organizational documents, such
      entity has full power and authority to execute and deliver this Agreement and
      all other related agreements or certificates and to carry out the provisions
      hereof and thereof and to purchase and hold the Note, the execution and delivery
      of this Agreement has been duly authorized by all necessary action, this
      Agreement has been duly executed and delivered on behalf of such entity and
      is a
      legal, valid and binding obligation of such entity; or (iii) if executing this
      Agreement in a representative or fiduciary capacity, represents that it has
      full
      power and authority to execute and deliver this Agreement in such capacity
      and
      on behalf of the subscribing individual, ward, partnership, trust, estate,
      corporation, or limited liability company or partnership, or other entity for
      whom the Holder is executing this Agreement, and such individual, partnership,
      ward, trust, estate, corporation, or limited liability company or partnership,
      or other entity has full right and power to perform pursuant to this Agreement
      and make an investment in the Company, and represents that this Agreement
      constitutes a legal, valid and binding obligation of such entity.  The
      execution and delivery of this Agreement will not violate or be in conflict
      with
      any order, judgment, injunction, agreement or controlling document to which
      the
      Holder is a party or by which it is bound;

     

    (d) Solicitation.  The
      Holder is unaware of, is in no way relying on, and did not become aware of
      the
      offering of the Note through or as a result of, any form of general solicitation
      or general advertising including, without limitation, any article, notice,
      advertisement or other communication published in any newspaper, magazine or
      similar media or broadcast over television or radio, in connection with the
      offering and sale of the Note and is not subscribing for the Notes and did
      not
      become aware of the offering of the Note through or as a result of any seminar
      or meeting to which the Holder was invited by, or any solicitation of a
      subscription by, a person not previously known to the Holder in connection
      with
      investments in securities generally;

     

    (e) Holder
      Liquidity.  Holder has adequate means of providing for Holder’s
      current financial needs and foreseeable contingencies and has no need for
      liquidity of its investment in the Note for an indefinite period of time and
      is
      aware that an investment in the Note involves a number of significant
      risks.

     

    
      
        
           

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    (f) Reliance
      on
      Exemptions.  Holder understands that the Note is being offered
      and sold to it in reliance on specific exemptions from the registration
      requirements of United States federal and state securities laws and that the
      Company is relying in part upon the truth and accuracy of, and such Holder’s
      compliance with, the representations, warranties, agreements, acknowledgments
      and understandings of such Holder set forth herein in order to determine the
      availability of such exemptions and the eligibility of such Holder to acquire
      such securities.

     

    (g) Information.  Holder
      and its advisors, if applicable, have been furnished with all materials relating
      to the business, finances and operations of the Company and information it
      deemed material to making an informed investment decision regarding its purchase
      of the Note and Bridge Shares.  Holder and its advisors, if
      applicable, have been afforded the opportunity to review the reports, schedules,
      forms, statements and other documents required to be filed by it with the SEC
      pursuant to the reporting requirements of the Securities and Exchange Act of
      1934.  Holder and its advisors, if applicable, have been afforded the
      opportunity to ask questions of the Company and its
      management.  Holder has sought such accounting, legal and tax advice
      as it has considered necessary to make an informed investment decision with
      respect to its acquisition of the Note and Bridge Shares.

     

    (h) No
      Other Representations or
      Information.  In evaluating the suitability of an investment in
      the Note, the Holder has not relied upon any representation or information
      (oral
      or written) other than as stated in this Note and in the Loan Agreement and
      other Loan Documents (as defined in the Loan Agreement).  No oral or
      written representations have been made, or oral or written information
      furnished, to the Holder or its advisors, if any, in connection with the
      offering of the Notes which are in any way inconsistent with the information
      contained in this Agreement.

     

    (i) Transfer
      or
      Resale.  Holder understands that the Note has not been and is
      not being registered under the Securities Act or any state securities laws,
      and
      may not be offered for sale, sold, assigned or transferred except in compliance
      with applicable securities laws.

     

    Section
      1.06                                
 Reliance
      on Note
      Register.  Prior to due presentment to the Company for transfer
      or conversion of this Note, the Company and any agent of the Company may treat
      the person in whose name this Note is duly registered on the Note Register
      as
      the owner hereof for the purpose of receiving payment as herein provided and
      for
      all other purposes, whether or not this Note is overdue, and neither the Company
      nor any such agent shall be affected by notice to the contrary.

     

    Section
      1.07                                
 In
      addition to the rights and remedies given it by this Note, the Loan Agreement
      and the other Loan Documents, the Holder shall have all those rights and
      remedies allowed by applicable laws.  The rights and remedies of the
      Holder are cumulative and recourse to one or more right or remedy shall not
      constitute a waiver of the others.

     

    Article
      II. 

    
    

     

    Section
      2.01                                
 Amendments
      and Waiver of
      Default.  The Note may not be amended without the consent of
      the Holder.

     

    
      
        
           

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    Article
      III.

     

    Section
      3.01                                
 Events
      of
      Default.  As used herein, the term "Event of Default" shall
      have the same meaning given such term in the Loan Agreement.

     

    Section
      3.02                                
 If
      any
      Event of Default occurs, the full principal amount and accrued interest of
      this
      Note then remaining unpaid, together with any other amounts owing in respect
      thereof to the date of acceleration shall become, at the Holder’s election,
      immediately due and payable in cash.  This Note shall bear interest at
      the Default Rate as provided in the Loan Agreement.  The Holder may
      immediately and without expiration of any grace period enforce any and all
      of
      its rights and remedies hereunder and all other remedies available to it under
      the Loan Agreement, the other Loan Documents, and applicable
      law.  Such declaration may be rescinded and annulled by the Holder at
      any time prior to payment hereunder and the Holder shall have all rights as
      a
      Note holder until such time, if any, as the full payment under this Note shall
      have been received by it.  No such rescission or annulment shall
      affect any subsequent Event of Default or impair any right consequent
      thereon.

     

     

    
      	
              Article
                IV. 

            

    

     

    Section
      4.01                                
 Security.  Payment
      of this Note is secured by, and this Note is entitled to the benefits of, all
      security agreements, collateral assignments, deeds of trust, mortgages and
      lien
      instruments executed by the Company (or other similar instruments, or any
      guaranties, endorsements or other agreements, executed by any other party)
      (collectively, the "Security Documents"),
      to secure, guarantee or otherwise provide for payment hereof, in favor of or
      for
      the benefit of the Holder, including those which have been previously executed
      or are executed concurrently herewith or subsequently hereto.

     

    Section
      4.02                                
 General
      Waivers.  The Company waives presentment for payment, demand,
      notice of intent to accelerate, notice of acceleration, protest and notice
      of
      protest, and of dishonor and diligence in collecting and the bringing of suit
      against any other party, and agrees to all renewals, extensions, partial
      payments, releases, subordinations and substitutions of security, in whole
      or in
      part, with or without notice, before or after maturity.  The failure
      by the Holder to exercise any of its rights, remedies, recourses, or powers
      upon
      the occurrence of one or more Events of Default shall not constitute a waiver
      of
      the right to exercise the same or any other right, remedy, recourse, or power
      at
      any subsequent time in respect to the same or any other Event of
      Default.  The acceptance by the Holder of any payment hereunder which
      is less than payment in full of all amounts due and payable at the time of
      such
      payment shall not constitute a waiver of the right to exercise any of the
      Holder's rights, remedies, recourses, or powers at that time, or any subsequent
      time, or nullify any prior exercise of any such right, remedy, recourse or
      power
      without the written consent of the Holder, except as and to the extent otherwise
      required by applicable law.

     

     

    
      	
              Article
                V. 

            

    

     

    Section
      5.01                                
  Notice.  Notices
      regarding this Note shall be sent to the parties at the following addresses,
      unless a party notifies the other parties, in writing, of a change of
      address:

     

     

    
      
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        986860v2

        
          

        

      

      
        
        

      

    

     

    
      	
              If
                to the Company, to:

            	
              America
                West Resources, Inc.

            
	 	
              57
                West 200 South, Suite 400

            
	 	
              Salt
                Lake City, Utah  84101

            
	 	
              Attn:
                Dan R. Baker, CEO

            
	 	 
	
              With
                a copy to:

            	
              Thomas
                C. Pritchard

            
	 	
              Brewer
                & Pritchard, P.C.

            
	 	
              3
                Riverway, Suite 1800

            
	 	
              Houston,
                Texas 77056

            
	 	 
	
              If
                to the Holder:

            	
              At
                the address set forth on the signature
                page.

            

    

    

    Section
      5.02                                
 Governing
      Law.  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 Utah, without
      regard to the principles of conflicts of law thereof.  Each party
      agrees that all legal proceedings concerning the interpretations, enforcement
      and defense of the transactions contemplated by this Note (whether brought
      against a party hereto or its respective affiliates, directors, officers,
      shareholders, employees or agents) shall be commenced in the state and federal
      courts sitting in the City of Salt Lake, Salt Lake County, Utah (the “Utah
      Courts”).  Each party hereto hereby irrevocably submits to the
      exclusive jurisdiction of the Utah 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 suit, action or proceeding, any claim that it is not personally subject
      to
      the jurisdiction of any such court, or such Utah Courts are improper or
      inconvenient venue for such proceeding; provided, however, that any suit to
      foreclose any lien which secures the payment hereof may be brought by the Holder
      in the jurisdiction where the property subject to such lien is
      located.  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 Note 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.  If either
      party shall commence an action or proceeding to enforce any provisions of this
      Note, then the prevailing party in such action or 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 action or
      proceeding.

     

    Section
      5.03                                
 Reduction
      in
      Interest.  It is the intention of the Company and the Holder to
      conform strictly to the applicable laws of usury.  All agreements and
      transactions between the Holder and the Company, whether now existing or
      hereafter arising, whether contained herein or in any other instrument, and
      whether written or oral, are hereby expressly limited so that in no contingency
      or event whatsoever, whether by reason of acceleration of the maturity hereof,
      late payment, prepayment, demand for prepayment or otherwise, shall the amount
      contracted for, charged or received by the Holder from the Company for the
      use,
      forbearance, or detention of the principal indebtedness or interest hereof,
      which remains unpaid from time to time, exceed the Maximum Lawful
      Amount.  Any interest payable hereunder or under any other instrument
      relating to the loan evidenced hereby that is in excess of the Maximum Lawful
      Amount, shall, in

     

    
      
        
           

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        986860v2

      

      
        
        

        
          

        

      

      
        
        

      

    

    the
      event
      of acceleration of maturity, late payment, prepayment, demand or otherwise,
      be
      applied to a reduction of the principal indebtedness hereof and not to the
      payment of interest, or if such excessive interest exceeds the unpaid balance
      of
      such principal, such excess shall be refunded to the Company.  To the
      extent not prohibited by law, determination of the Maximum Lawful Amount of
      interest shall at all times be made by amortizing, prorating, allocating and
      spreading all interest at any time contracted for, charged or received from
      the
      Company in connection with the loan in equal parts during the period of the
      full
      term of the loan evidenced hereby until repayment in full of the principal
      (including the period of any renewal or extension hereof), so that the actual
      rate of interest on account of such indebtedness does not exceed the Maximum
      Lawful Amount.  As used herein, the term "Maximum Lawful
      Amount" means the maximum amount of non-usurious interest, permitted with
      respect to the indebtedness evidenced by this Note from time to time by
      applicable law after taking into account any and all fees, payments, and other
      charges that constitute interest under applicable law.  Use of the
      term Maximum Lawful Amount shall not be deemed to imply or affirm that there
      is
      any Maximum Lawful Amount applicable to this Note.

     

    Section
      5.04                                
 WAIVER
      OF JURY
      TRIAL.  THE COMPANY AND THE HOLDER HEREBY KNOWINGLY,
      VOLUNTARILY, IRREVOCABLY AND INTENTIONALLY WAIVE, TO THE MAXIMUM EXTENT
      PERMITTED BY LAW, ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR CLAIM
      ARISING OUT OF OR RELATED TO THIS NOTE OR THE TRANSACTIONS CONTEMPLATED BY
      THE
      TERMS OF THE LOAN AGREEMENT OR THE ACTIONS OF THE HOLDER IN THE ENFORCEMENT
      HEREOF OR THEREOF.

     

    Section
      5.05                                
 Severability.  The
      invalidity of any of the provisions of this Note shall not invalidate or
      otherwise affect any of the other provisions of this Note, which shall remain
      in
      full force and effect.

     

    Section
      5.06                                
 Entire
      Agreement and
      Amendments.  This Note, the Loan Agreement and the other Loan
      Documents reflect the entire understandings and agreements of the Company and
      the Holder with respect to the subject matter of the Loan
      Documents.  Any and all prior understandings and agreements and any
      and all contemporaneous understandings and agreements are incorporated in the
      Loan Documents.  Except as specifically set forth in the Loan
      Documents, there are no understandings or agreements, express or implied, with
      respect to the subject matter of the Loan Documents.  The Company
      understands that the Holder has made no commitment to renew, refinance, extend
      or rearrange the Loan, nor to advance additional funds to or on behalf of the
      Company.  The Company represents and warrants to the Holder that no
      officer, employee, representative of, or attorney for, the Holder has made
      any
      oral commitments or representations which are not incorporated in the Loan
      Documents.  This Note may be amended only by an instrument in writing
      executed by the parties hereto.

     

    
      
        
           

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    IN
      WITNESS WHEREOF, with the
      intent to be legally bound hereby, the parties hereto executed this Note as
      of
      the date first written above.

     

    
      	
              America
                West Recourses, Inc.

            
	 	 
	 	 
	
              By:

            	
              /s/
                DAN R. BAKER

            
	 	
              Dan
                R. Baker, CEO

            

    

    

    

    

    

    {HOLDER
      SIGNATURE PAGE TO FOLLOW}

    
      
        
           

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        986860v2

      

      
        
        

        
          

        

      

      
        
        

      

    

    Holder

    

    
      	
              Denly
                ACI Partners, Ltd.,

              a
                Texas limited partnership

            
	 	 
	
              By:

            	
              Denly
                ACI Mgt., LLC

              a
                Texas limited liability company

            
	 	 
	 	 
	
              By:

            	
              /s/
                DENNIS C. VON WAADEN

            
	 	
              Dennis
                C. von Waaden, Manager

            
	 	 
	 	 
	
              By:

            	
              /s/
                SALLY A. VON WAADEN

            
	 	
              Sally
                A. von Waaden, Manager

            
	 	 

    

     

    
 

    

    13809
      Research Blvd., Suite 810

    Austin,
      Texas  78750c55568_ex10-1.htm -- Converted by SEC Publisher, created by BCL Technologies Inc., for SEC Filing

       SEPARATION
          AGREEMENT AND GENERAL RELEASE OF CLAIMS (this “Agreement”),
          dated as of November 5, 2008, by and between ELITE PHARMACEUTICALS,
          INC. (the
          “Company”),
          and BERNARD J. BERK (“Executive”).  

BACKGROUND

      WHEREAS, Executive is presently employed by the Company as its President, Chief Executive Officer and Chairman; and 

      WHEREAS, Executive has elected to resign as of the Separation Date (as defined below) and , as a result of the acceptance of Executive’s resignation and, in connection therewith, the Company has agreed to provide certain
benefits to Executive in consideration of Executive’s execution and performance of this Agreement; 

      NOW, THEREFORE, in consideration of the mutual covenants and conditions contained in this Agreement and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and intending to be
legally bound hereby, the parties agree as follows: 

TERMS

      1.   Termination of Employment. Executive acknowledges that his employment with the Company shall terminate as of, and that his work-through date with the Company is the
close of business on November 5, 2008 (the “Separation Date”). Executive acknowledges that all expenses to which he may be entitled to reimbursement, with the exception of not more
than two thousand five hundred dollars ($2,500) in expenses to be submitted along with appropriate documentation (including a valid business purpose) within thirty days hereof, have been reimbursed.  Effective as of the Separation Date,
Executive resigns as the Company’s Chief Executive Officer and President and also resigns as the Chairman of the Board and as a member thereof. 

      2.   Employment Agreement. Executive acknowledges and hereby waives his entitlement to certain notice and payment provisions upon termination under his Second Amended and
Restated Employment Agreement, dated November 13, 2006, by and between Executive and the Company, as amended (the “Employment Agreement”). Executive and the Company hereby
additionally waive all obligations to one another set forth in the Employment Agreement, except as set out specifically herein. Without limiting the generality of the foregoing, Executive further acknowledges that, other than as set forth herein,
there are no payment amounts outstanding to Executive under the Employment Agreement.

      3.   Severance Benefits.

           (a)   The Company shall pay to Executive a severance payment of Thirty-Four Thousand Dollars (US$34,000) less all applicable payroll or withholding taxes (the “Severance Amount”).

	 	
      Page 1 of 11 
	 		
    Initials                          

           (b)   Prior to any payment of the Severance Amount to Executive, the Executive shall provide to the Company on or before November 20, 2008, expense reports (on the standard Company form) for any and
all expenses identified by the Company on or before the Separation Date and previously reimbursed to Executive for which the Company has not received sufficient documentation to substantiate such expense prior to the Separation Date and for which
the Company has determined that Executive has not demonstrated a valid business purpose (including, without limitation, all reimbursements to Executive, or on Executive’s behalf, relating to (x) Executive’s Platinum Plus for Business
credit card (accounts bearing the last four digits: 8620 and 6351) and (y) to providers of life insurance policies for the benefit of Executive above the pre-existing one million dollar policy) (collectively, the “Reimbursed Expenses”).  The Severance Amount shall not be paid to Executive until the Executive has provided expense reports and such other documentation as may be available for the Reimbursed
Expenses. To the extent that the Company determines, after a good faith review of the expenses reports provided by the Executive, that any of the Reimbursed Expenses do not constitute valid business expenses in compliance with the Registrant’s
expense reimbursement policy, Executive shall have the right to contest the Company’s determination as to all or any portion of the Reimbursed Expenses before an independent accounting firm selected by the Company and reasonably acceptable to
the Executive. The determination of such independent accounting firm shall be binding upon both the Company and the Executive as to all disputed expenses.

           (c)   Upon the determination by the Company (and, if applicable, the independent accounting firm) as to which Reimbursed Expenses do not constitute valid business expenses, the Company shall provide to
Executive, on form 1099, as additional income for taxation purposes, an amount equal to the aggregate amount of such Reimbursed Expenses so determined as not constituting valid business expenses in compliance with the Registrant’s expense
reimbursement policy, and Executive shall be responsible for the payment of all applicable taxes due upon such additional income (the “Additional Income Amount”). Executive agrees to indemnify and hold harmless the Company from all Claims
asserted against the Company arising out of, resulting from or in connection with the Executive’s failure to pay all taxes upon the Additional Income Amount up to the amount of such taxes that would have been due, exclusive of penalties and
interest.

      4.   Covenants, Representations and Warranties of the Parties.

           (a)   The Company and Executive each represent and warrant to the other (as to itself) that (i) the party has full authority and capacity to enter into and perform the party’s obligations under
this Agreement (having obtained all requisite corporate, company and/or governmental approvals), (ii) this Agreement has been fully authorized, executed and delivered by the party and that the party has full legal right, power and authority to enter
into and perform this Agreement, which constitutes a valid and binding agreement between the parties, enforceable against the party in accordance with its terms, (iii) there are no agreements between the party and any third party that conflict with
this Agreement; and (iv) no consent or approval of any third party, court or governmental agency is required in connection with the party’s execution and performance of this Agreement. 

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           (b)    Executive represents, warrants, acknowledges and agrees that (i) Executive shall have no authority to bind the Company or to negotiate on the Company’s behalf after his resignation
hereunder, (ii) Executive shall not, with respect to the Company and/or its assets, participate in any meeting, initiate or participate on any call, undertake any negotiation or make any representation regarding the Company, without the prior
consent of the Company, in its sole discretion after a good faith discussion with Executive and (iii) to the extent the Company determines in good faith after discussion with the Executive that Executive shall not continue or initiate contact with
any third party on behalf of the Company, Executive shall be refrain from such contact on the Company’s behalf. Executive agrees to refrain from taking any action which may be likely to result in a violation of the agreements set forth in this
Section 4(b).

             (c)   Each of Executive and the Company represents and warrants to the other that there is no source of funding, strategic partner or potential Strategic Transaction known to such party or, in the case of the Company, any member
of the Board or Officer of the Company, that has not been disclosed to the other party. 

            (d)   Notwithstanding anything to the contrary herein, Executive acknowledges that (x) all vested grants of options to purchase common stock, par value $0.01 per share (the “Common Stock”) of the Company shall remain vested and exercisable by Executive in accordance with their terms, and (y) all unvested grants of options to purchase Common Stock (including those grants
provided for under Sections 3(e) and 3(f) of the Employment Agreement) shall terminate as of the Separation Date.  Executive acknowledges that as to certain vested options to purchase Common Stock, Executive has 90 days following the Separation Date
in which to exercise such vested options. 

     5.   General Release of Claims and Covenants Not to Sue.

          (a)   Executive for himself and his respective administrators, executors, agents, beneficiaries and assigns, does hereby waive, release and forever discharge the Company (as hereinafter defined for the
purposes of this Section 5) of and from any and all Claims (as defined below). Executive agrees not to file a lawsuit to assert any such Claim. This release covers all Claims arising from the beginning of time up to and including the date of this
Agreement, but does not cover Claims relating to the validity or enforcement of this Agreement or claims arising out of the Company’s indemnification or insurance obligations or such surviving obligations under the Employment Agreement as are
explicitly set out herein. In addition, Executive irrevocably and unconditionally releases, forever discharges, and agrees to indemnify and hold harmless the Company from all Claims Executive believes or, at a later date may believe, he has against
the Company for any actions arising out of Executive’s employment with or separation from the Company from the beginning of time up to and including the date of this Agreement, whether known or unknown as of the date of this
Agreement.

           (b)  
The Company for itself and its respective officers, directors, employees, affiliates,
agents, beneficiaries and assigns, does hereby waive, release and forever discharge
Executive of and from any  and all Claims, known or which should have been known,
based upon reasonable investigation, by the Company as of the Separation Date.
The Company agrees not to file a lawsuit to assert any such Claim. This release
covers all Claims arising from the  beginning 

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of time up to and including the date of this Agreement, but does not cover Claims relating to the validity or enforcement of this Agreement, the Executive’s indemnification obligations as are explicitly set out herein or the
surviving provisions of the Employment Agreement as explicitly set out herein. In addition, the Company irrevocably and unconditionally releases, forever discharges, and agrees to indemnify and hold harmless the Executive from all Claims the Company
believes or, at a later date may believe, it has against the Executive for any actions arising out of Executive’s employment with or separation from the Company from the beginning of time up to and including the date of this Agreement, whether
known or which should have been known, based upon reasonable investigation, by the Company as of the date of this Agreement.

          (c)   Definition of “Claims”.

           (i)
For purposes of this Agreement, “Claims” includes
without limitation all actions or demands of any kind that the releasing  party
now has, or may have or claim to have in the future arising out of occurrences
on or before the date of this Agreement. More specifically, Claims include rights,
causes of action, damages, penalties, losses, attorneys’ fees, costs,
expenses, obligations, agreements, judgments and all other liabilities of any
kind or description whatsoever, either in law or in equity, whether known or
unknown, suspected or unsuspected. 

            (ii) The nature
  of Claims covered by this release and covenant not to sue includes, without limitation,
  all actions or demands in any way based on Executive’s employment with Company,
  the terms and conditions of such  employment, or the termination of such employment.
  More specifically, all of the following are included in the types of Claims that
  will be barred by this release and covenant not to sue: (i) contract claims (whether
  express or implied), (ii) tort  claims (such as for defamation or emotional distress),
  (iii) claims under federal, state and municipal laws, regulations, ordinances
  or court decisions of any kind, (iii) claims of discrimination, harassment or
  retaliation, whether based on race,  color, religion, gender, sex, age, sexual
  orientation, handicap or disability, national origin, or any other legally protected
  class, (iv) claims under the Age Discrimination in Employment Act of 1967 as
  amended by the Older Workers Benefit  Protection Act, Title VII of the Civil
  Rights Act of 1964 as amended by the Civil Rights Act of 1991, the Equal Pay
  Act of 1962, the Americans with Disabilities Act of 1990, the Workers Adjustment
  and Retraining Notification Act, the New York State  Human Rights Law (Article
  15 of the New York State Executive Law), the New York City Human Rights Law (Title
  I, Chapter B of the Administrative Code of the City of New York), or any other
  federal, state or local statute or ordinance, (v) claims  under Executive Retirement
  Income Security Act, the Fair Labor Standards Act, state wage payment laws and
  state wage and hour laws; and (vi) claims for wrongful discharge. 

           (d)   Definition of “Company”. For purposes of this Section 5, “Company” includes, without limitation, Elite Pharmaceuticals, Inc., and its past, present and future parents, Affiliates (as defined below), subsidiaries, divisions, predecessors, successors, assigns, employee benefit plans and trusts and
each of their respective past, present and future directors, officers,

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partners, shareholders, members, managers, agents, employees, attorneys, representatives, consultants, associates, fiduciaries, plan sponsors, administrators and trustees. 

             (e)   Definition of “Affiliate”. For purposes of this Agreement, “Affiliate” (and its
derivations) shall mean, with respect to any person, any other person who controls, is controlled by or is under common control with such person. For purposes of the definition of Affiliate, “control” means the power to direct the management and policies of such person or firm, directly or indirectly, whether through the ownership of voting securities, by contract or otherwise.

           (f)   Acknowledgment of Scope of Release. Executive and the Company declare and agree that any Claims they may have incurred or sustained may
not be fully known to them and may be more numerous and more serious than they now believe or expects. Further, in entering into this Agreement, Executive and the Company rely wholly upon their own judgments of the future development, progress and
result of said Claims, both known and unknown, and acknowledge that they have not been influenced to any extent whatsoever in the making of this Agreement by any representations or statements regarding said Claims made by individuals or entities
other than as specifically set out herein.. Executive and the Company further acknowledge that they accept the terms herein in full settlement and satisfaction of all such Claims. 

     6.   Restrictive Covenants of Executive and the Company.

           (a)   Employment Agreement. Executive and the Company acknowledge that all of their respective obligations under the Employment Agreement are
hereby terminated except as set forth explicitly herein. Notwithstanding the foregoing: (i) Executive specifically agrees that his obligations under Sections 6(b), 6(c) and 6(d) of the Employment Agreement (“Other Duties of Executive During and
After Term”) shall survive the termination of the Settlement Agreement; and (ii) the Company specifically agrees that its obligations under Section 7 of the Employment Agreement (“Indemnification”) relating to indemnification of the
Executive in various capacities for action through the date of this Agreement shall survive the termination of the Settlement Agreement. Executive and the Company agree that they will continue to be bound by and shall abide by such provisions.

          (b)   Confidentiality. 

          (i) Executive acknowledges and agrees that, during his employment with the Company, he had access to Proprietary Information (as defined below) and that the Proprietary Information is the exclusive
property of the Company or the party that disclosed or delivered such information to the Company. Executive agrees not to use the Proprietary Information, directly or indirectly, and agrees that he will promptly notify the Company of any
unauthorized disclosure of Proprietary Information. Specifically, Executive agrees that all Proprietary Information or inventions developed as a direct result of his efforts on behalf of the Company during his employment with the Company remain the
exclusive property of the Company, and that Executive has no ownership interest therein. For purposes of this Agreement, “Proprietary Information” means all of the following information and material, whether or not reduced to 

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writing and whether or not patentable, that Executive, during his employment with the Company, had access to or developed, in whole or in part, as a direct or indirect result of either his efforts on behalf of the Company or
through the use of any of the Company’s facilities or resources: (i) computer software, including without limitation all source and object code, flow charts, algorithms, coding sheets, routines, sub-routines, compilers, assemblers, design
concepts and related documentation and manuals; (ii) production processes, collection and receivable management processes, procedures and techniques, marketing techniques, licensing or sales policies, financial information, employee names and job
descriptions, customer and prospective customer names and requirements, data and other information or materials relating to the manner in which the customer, prospective customer or the Company do business, all of the foregoing items in this
subparagraph (ii) only to the extent they are proprietary, confidential and not known to the public or industry; (iii) patents, patent applications, trademarks, trademark applications and any other intellectual property rights and discoveries,
concepts and ideas (including but not limited to the nature and results of research and development activities), processes, formulae, techniques, “know-how”, designs, drawings and specifications, information relating to products, proposed products, agreements with or proprietary information of third parties, and clinical data and analysis, clinical trials, applications and communications with the United States Food and Drug
Administration; (iv) any other information or materials relating to the business or activities of the Company which is not generally known to others engaged in similar business or activities; (v) all inventions and ideas
which are derived from or relate to Executive’s access to, or knowledge of, any of the information or materials describe herein; (vi) any of the information or material described herein which is the proprietary, confidential property of any
other person or firm which has revealed or delivered such information or material to the Company pursuant to a duty of non-disclosure arising from a contractual relationship with the Company or otherwise in the course of the Company’s business.
Proprietary Information shall not include any information or material of the type described herein to the extent that such information or material is or becomes publicly known or known to
others in the industry through no act on Executive’s part in violation of this confidentiality provision. 

           (ii) Executive and the Company (including but not limited to its Officers and Directors) further agree that they shall maintain the terms of this Agreement and the negotiations leading up to it in the
STRICTEST CONFIDENCE. Neither Executive nor the Company shall not disclose or discuss any of the terms of this Agreement or the negotiations leading up to it with anyone other than: (y) for Executive, Executive’s immediate family members,
accountant, the Internal Revenue Service, legal representative, or pursuant to subpoena issued as part of a legal proceeding; provided that, before disclosing the terms of this Agreement or the negotiations leading up to it to any of the foregoing,
Executive shall advise the recipient regarding the existence of this confidentiality provision and obtain the agreement of the recipient to maintain the information in accordance with this provision; and (z) for the Company, as required by any
obligation of disclosure arising out of any law, regulation or legal proceeding. 

           (c)   Return of Corporate Property and Associated Expenses. Executive represents that he has returned or will return within a reasonable time
to the Company all corporate property and copies thereof in his possession or under his custody or control, including without limitation, automobiles, corporate credit cards, identification badge, calling cards, cellular or mobile telephone, and
computer equipment and software. Executive’s access to such property and facilities shall cease effective as of the Separation Date. In addition, Executive

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represents and warrants to the Company that he has returned to the Company, and has not retained copies of, all customer records, whether in print or electronic form, and Executive specifically represents and warrants to the
Company that he has deleted all such information from any personal computer or other electronic storage media in his possession.  Executive’s access to such property and facilities, records, and information shall cease effective as of the
Separation Date. 

           (d)   Non-Disparagement.  The Executive agrees that he shall not, directly or indirectly, defame, disparage, make negative comments about,
whether or not true, the name or reputation of the Company or any of its Affiliates, including but not limited to, any officer, director, or employee of the Company or any of its Affiliates in their capacity as such, or act in any other manner that
is intended to or does damage the good will, business or personal reputations of the Company or any of its Affiliates, including but not limited to, any officer, director, or employee of the Company or any of its Affiliates in their capacity as
such.  The Company agrees that it and its affiliates, employees, agents officers and Directors shall not, directly or indirectly, defame, disparage, make negative comments about, whether or not true, the Executive, or act in any other manner that is
intended to or does damage the good will, business or personal reputations of the Executive, other than any disclosure as may be required by law, regulation or legal proceeding. The provisions of this Section 6(d) shall survive any termination of
this Agreement and the termination of the Executive’s employment with the Company.

     7.   Acknowledgements.

           (a)   Except as provided for in Sections 2, 3 and 7, the Company shall have no further obligation to Executive, including, without limitation, on account of his service as an employee of the
Company.

           (b)   Executive acknowledges that any payments or benefits provided to Executive under the terms of this Agreement do not constitute an admission by the Company that it has violated any law or legal
obligation with respect to any aspect of Executive’s employment or separation therefrom, and the Company acknowledges that no action taken by the Executive hereunder shall constitute an admission by Executive that he has violated any law or
legal obligation with respect to any aspect of his employment or separation therefrom. 

           (c)   Executive and the Company have not instituted, assisted, or otherwise participated in connection with, any complaint, claim, charge, lawsuit, or administrative agency proceeding, or action at law
or otherwise againstone another.

           (d)   Executive hereby represents that from the Separation Date onward (i) Executive has not made and will not make any representations, warranties, or commitments binding the Company and (ii) Executive
has not executed and will not execute any agreement on behalf of the Company, nor did Executive or shall Executive hold himself out to have such authority.

           (e)   Upon reasonable advance written notice, during mutually agreeable time periods, and provided the foregoing shall not interfere with Executive’s then current 

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employment, Executive agrees to make himself available to the Company in any pending or future governmental or regulatory investigation, civil or administrative proceeding, or arbitration, subject to any privileges that Executive
may have and to his other personal and business commitments. The Company will reimburse Executive for any loss of salary and all reasonable costs and expenses incurred by Executive in connection with any such proceeding or arbitration.

           (f)   Executive hereby represents that Executive has not assigned to any person or entity any claim, including, without limitation, Claims that arose or could have arisen against the Company, or its
past, present and future parents, Affiliates, subsidiaries, divisions, predecessors, successors, assigns, employee benefit plans and trusts and each of their respective past, present and future directors, officers, partners, shareholders, members,
managers, agents, employees, attorneys, representatives, consultants, associates, fiduciaries, plan sponsors, administrators and trustees. 

           (h)   Executive acknowledges that this agreement was drafted by the Company and that he consulted with legal counsel of his choosing, at his own expense, regarding the meaning and binding effect of this
Agreement and each and every term hereof prior to executing it. 

           (i) Executive, intending to be legally bound hereby, certifies and warrants that he has read carefully this Agreement and has executed it voluntarily and with full knowledge and understanding of its
significance, meaning and binding effect. Executive further declares that he is competent to understand the content and effect of this Agreement. 

           (j) Executive acknowledges that he was given a period of 21 days within which to consider this Agreement and to the extent he executes this Agreement before the expiration of the 21-day period, he
does so knowingly and voluntarily and only after consulting his attorney.  Executive shall have the right to cancel and revoke this Agreement during a period of 7 days following executing this Agreement, and this Agreement shall not become
effective, and no payments or benefits shall be made or provided pursuant to this Agreement, until the day after the expiration of such 7-day period. The 7-day period of revocation shall commence upon Executive executing this Agreement. In order to
revoke this Agreement, the Executive shall deliver to the Company, prior to the expiration of such 7-day period, a written notice of revocation. Upon such revocation, this Agreement shall be null and void and of no further force or effect.

     8.   Headings. The headings contained in this Agreement are not part of this Agreement and are included solely
for ease of reference. 

     9.   Integration and Modification. Executive declares and represents that no promise or agreement has been
made to him other than those expressed herein. Except as stated herein, this Agreement and the surviving provisions of the Employment Agreement, constitute the entire agreement of the parties on the subjects set out herein and supersedes all prior
understandings,

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whether oral or written, between them on such subjects. Any modification of this Agreement must be made in writing and signed by all parties. 

     10.   Severability. If any provision of this Agreement is or shall be declared invalid or unenforceable by a
court of competent jurisdiction, the remaining provisions shall not be affected thereby and shall remain in full force and effect. 

     11  . Notices. All notices and other communications set forth in this Agreement are to be deemed delivered the day they
are sent if sent by same day or overnight commercial service to the applicable party at the following address (or such other address for a party as may be specified by like notice): 

           If to Executive: 

                     Address set forth in the Records of the 

                     Company as of the Date of this Agreement 

           If to the Company: 

                      Elite Pharmaceuticals, Inc. 

                     165 Ludlow Avenue 

                     Northvale, NJ 07647 

                     Attention: Chief Operating Officer

                     Facsimile: (201) 750-2755 

           With a copy to: 

                     Reitler Brown & Rosenblatt LLC 

                     800 Third Avenue, 21st floor 

                     New York, NY 10022 

                     Attention: Scott H. Rosenblatt, Esq. 

                     Facsimile: (212) 371-5500 

     12.   Governing Law; Consent to Jurisdiction. This Agreement shall be governed by, and construed in accordance with, the laws of the State of
New York (without giving effect to its choice or conflict of laws provisions). Each of the parties hereby irrevocably and unconditionally submits to the jurisdiction of the courts of the State of New York and of the federal courts sitting in the
State of New York in all actions or proceedings arising out of or relating to this Agreement. Each of the parties agrees that all actions or proceedings arising out of or relating to this Agreement must be litigated exclusively in any such state or
federal court that sits in the City of New York, Borough of Manhattan, and accordingly, each party irrevocably waives any objection which it may now or hereafter have to the laying of the venue of any such litigation in any such court.  

     13.   Counterparts. This Agreement may be executed in any number of counterparts, each of which shall constitute an original, but all of which
together shall constitute one and the same instrument. 

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     14.   Equitable Remedies. Executive acknowledges and agrees that it would be impossible or inadequate to measure and calculate the
Company’s damages from any breach of the covenants contained in Section 4(b) of this Agreement. Accordingly, Executive agrees that if he breaches any of such covenants, the Company will have available, in addition to any other right or remedy
available, the right to obtain an injunction from a court of competent jurisdiction restraining such breach or threatened breach and to specific performance of any such provision of this Agreement. Executive further agrees that no bond or other
security shall be required in obtaining such equitable relief and hereby consents to the issuance of such injunction and to the ordering of specific performance. 

[Remainder of page intentionally left blank. Signature page follows.]

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     IN WITNESS WHEREOF, and with the intention of being legally bound hereby, the parties have executed this Separation Agreement and General Release of Claims as of the date first written above.

	 	
BERNARD J. BERK	
	 	 	
	 	 	
	 	 	
	 	
ELITE PHARMACEUTICALS, INC.	
	 	 	
	 	 	
	 	
By:	/s/ Chris Dick                                                  
	 	
          Name: Chris Dick	
	 	
          Title: Executive Vice President of	
	 	
              Corporate Development 

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