Document:

Exhibit 10.3

THIRD
AMENDMENT TO STRATEGIC ALLIANCE AGREEMENT

THIS THIRD AMENDMENT TO
STRATEGIC ALLIANCE AGREEMENT, dated as of August 18, 2009 (this “Amendment”),
is made by and between Elite Pharmaceuticals, Inc., a Delaware corporation, on
the one hand, and Epic Pharma, LLC, a Delaware limited liability company, and
Epic Investments, LLC, a Delaware limited liability company, on the other hand,
relating to that certain STRATEGIC ALLIANCE AGREEMENT, dated as of March 18,
2009 (as amended, the “Alliance Agreement”). Capitalized terms used
herein and not otherwise defined have the meaning assigned to such terms in the
Alliance Agreement. 

          WHEREAS,
the parties hereto have agreed to amend the Alliance Agreement as hereinafter
provided. 

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

          1. Amendment.
Section 4.10(a) of the Alliance Agreement is hereby amended by deleting the
date “July 31, 2009” which appears therein and inserting “October 30, 2009” in
its place. 

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

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

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

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

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

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

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

	
 

	
 

	
 

	
 

	
 

	
ELITE PHARMACEUTICALS,
 INC. 

	
 

	
 

	
 

	
 

	
 

	
 

	
By: 

	
/s/ Chris Dick

	
 

	
 

	
 

	

	
 

	
 

	
 

	
Name: Chris Dick

	
 

	
 

	
 

	
Title: President, Chief
 Operating Officer and 

 Acting Chief Executive Officer

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
EPIC PHARMA, LLC 

	
 

	
 

	
 

	
 

	
 

	
 

	
By:

	
/s/ Ashok G. Nigalaye

	
 

	
 

	
 

	

	
 

	
 

	
 

	
Name: Ashok G. Nigalaye,
 Ph.D.

	
 

	
 

	
 

	
Title: President and Chief
 Executive Officer

	
 

	
 

	
 

	
 

	
 

	
 

	
EPIC INVESTMENTS, LLC 

	
 

	
 

	
 

	
 

	
 

	
 

	
By:

	
EPIC PHARMA, LLC, its
 Managing Member

	
 

	
 

	
 

	
 

	
 

	
 

	
By:

	
/s/ Ashok G. Nigalaye

	
 

	
 

	
 

	

	
 

	
 

	
 

	
Name: Ashok G. Nigalaye,
 Ph.D.

	
 

	
 

	
 

	
Title: President and Chief
 Executive Officerexh10_48.htm

Exhibit 10.48

 

 

EXHIBIT A-1

 

THE INDEBTEDNESS EVIDENCED BY THIS PROMISSORY NOTE AND ANY RIGHTS OR REMEDIES HEREUNDER SHALL BE SUBORDINATE TO MAKER’S PRESENT AND FUTURE BANK AND OTHER FINANCIAL INSTITUTION DEBT AND OTHER SENIOR DEBT INCURRED OR TO BE INCURRED BY MAKER.

 

THE PAYMENTS UNDER THIS PROMISSORY NOTE ARE SUBJECT TO OFFSET PURSUANT TO SECTION 5.7 OF THE ASSET PURCHASE AGREEMENT ENTERED INTO ON FEBRUARY 26, 2007 BETWEEN MAKER AND LENDER.

 

Subordinated Promissory Note

 

	U.S. $1,201,097.00 	 March 1, 2009
	 	 Manalapan, NJ

 

    FOR VALUE RECEIVED, ACCOUNTABILITIES, INC., a Delaware corporation (hereinafter referred to as the "Maker") promises to pay to the order of RESTAFF, INC., a California corporation (hereinafter referred to as the "Lender"), at 2401 Waterman Boulevard, Suite A3, Fairfield,
California 94533, or at such address as Lender may designate from time to time, the principal sum of One Million Two Hundred and One Thousand and Ninety-Seven and 00/100 Dollars ($1,201,097.00), together with interest thereon at the rate of six percent (6%) per annum, payable in Thirty Six (36) equal monthly payments of principal and interest in the amount of Thirty-Six Thousand Five Hundred and Thirty-Nine and 69/100 Dollars ($36,539.69), commencing March 1, 2009 , and monthly thereafter on the 1st day
of each month, to account(s) designated by the lender no less than two (2) business days before a scheduled payment date.

 

This Promissory Note (the “Note”) is made pursuant to the provisions of that certain Asset Purchase Agreement, dated as of February 26, 2007, by and between Maker and Lender (the "Asset Purchase Agreement").  Any payment under this Note may be offset pursuant to the terms of Section 5.7 of the Asset Purchase Agreement.  The
capitalized terms herein not otherwise defined, shall have the meaning given to such terms in the Asset Purchase Agreement.

 

The aggregate principal amount of this Note shall be subject to adjustment in the event that the Net Income (as defined in the Asset Purchase Agreement) of the Acquired Business, is less than $1,000,000 in any calendar year, during which this Note is outstanding.  If the Net Income of the Acquired Business is less than $1,000,000
during any calendar year, then the principal amount of the Note shall be reduced to an amount determined by multiplying

 

  

1

  

$1,201,097 by a fraction, the numerator of which shall be the amount of Net Income of the Acquired Business for such calendar year, and the denominator of which shall be the $1,000,000.

 

Payments of the amounts due hereunder shall be made in lawful money of the United States which shall be legal tender in payment of all debts, public and private, at the time of payment.

 

The indebtedness represented by this Note and any rights and remedies hereunder shall be subordinate to Maker’s present and future bank and other financial institution debt and other senior debt incurred or to be incurred by Maker and the indebtedness set forth on Schedule 1.2(a) of the Asset Purchase Agreement, provided however that
this Note shall rank senior to all future acquisition indebtedness.

 

Maker will be in default under this Note if it fails to make payment of any installment within ten (10) days of the applicable due date.

 

Upon any default under this Note, with such default continuing for a period of thirty (30) days after written notice to the Maker of such default, the unpaid principal shall, at the option of the Lender, become immediately due and payable and interest will accrue, commencing at the end of such thirty (30) day period, at an annual rate equal
to the lesser of eighteen percent (18%) or the maximum rate of interest permitted by applicable law.  Failure to exercise this right to accelerate the due date, shall not constitute a waiver of Lender's right to exercise the same in the event of any subsequent default.  Any property of the Maker or of any endorser held by the Lender hereof may be applied by the Lender to any sums due and unpaid pursuant to this Note.

 

As to this Note and any other instrument securing the indebtedness, the Maker and all guarantors and endorsers severally waive all notice of acceleration, presentment, protest and demand, dishonor and non-payment of this Note, and expressly agreed that the maturity of this Note, or any payment hereunder, may be extended from time to time
without in any way affecting the liability of the Maker and all guarantors and endorsers.

 

Should it become necessary to collect this Note through an attorney, the Maker and any surety, endorser or guarantor of this Note hereby agrees to pay all costs and expenses of collection, including reasonable attorneys' fees and any attorneys' fees incurred in appellate, bankruptcy or post-judgment proceedings.

 

This Note shall be governed by and construed in accordance with the laws of the State of New Jersey without regard to conflicts of law principles.  The Maker and Lender agree to submit to the exclusive jurisdiction of the New Jersey state courts located in Monmouth County, New Jersey to enforce the terms of this Note.

 

The Maker acknowledges and agrees that this Note has been signed and delivered in exchange for valuable consideration.

 

This Note may be prepaid in whole or in part at any time prior to the due date without penalty.

 

  

2

  

This Note may not be changed orally, but only by an agreement in writing, signed by the party against whom enforcement of any waiver, change, modification or discharge is sought.

 

This Note shall not be transferred, sold, assigned, pledged, hypothecated or otherwise disposed of by Lender without the prior written consent of the Maker.  Maker shall not sell, transfer, assign or otherwise dispose of this Note without the prior written consent of the Lender; provided that Maker may assign this Note to a subsidiary
or affiliate of Maker as long as Maker remains liable for the obligations hereunder.

 

The term "Maker" as used herein in every instance shall include the successors and assigns of Maker.

 

	 	ACCOUNTABILITIES, INC.	 
	 	 	 	 
	
 
	
By: 
	/s/ Stephen DelVecchia	 
	 	 	Name: Stephen DelVecchia 	 
	 	 	Title: Chief Financial Officer 	 
	 	 	 	 

 

	 	RESTAFF SERVICES, INC.	 
	 	 	 	 
	
   
	
By: 
	/s/ Rhonda Faria	 
	 	 	Name: Rhonda Faria 	 
	 	 	Title: President 	 
	 	 	 	 

 

3

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