Document:

Exhibit 10.2

 

REGISTRATION RIGHTS AGREEMENT

 

REGISTRATION RIGHTS
AGREEMENT (this "Agreement"), dated as of April 10, 2014, by and between ELITE PHARMACEUTICALS, INC.,
a Nevada corporation, (the "Company"), and LINCOLN PARK CAPITAL FUND, LLC, an Illinois limited liability
company (together with it permitted assigns, the “Buyer”). Capitalized terms used herein and not otherwise
defined herein shall have the respective meanings set forth in the Purchase Agreement by and between the parties hereto, dated
as of the date hereof (as amended, restated, supplemented or otherwise modified from time to time, the "Purchase Agreement").

 

WHEREAS:

 

The Company has agreed,
upon the terms and subject to the conditions of the Purchase Agreement, to sell to the Buyer up to Forty Million Dollars ($40,000,000)
of the Company’s Common Stock, and to induce the Buyer to enter into the Purchase Agreement, the Company has agreed to provide
certain registration rights under the Securities Act of 1933, as amended, and the rules and regulations thereunder, or any similar
successor statute (collectively, the "Securities Act"), and applicable state securities laws.

 

NOW, THEREFORE,
in consideration of the promises and the mutual covenants contained herein and other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the Company and the Buyer hereby agree as follows:

 

		1.	DEFINITIONS.

 

As used in this Agreement,
the following terms shall have the following meanings:

 

a."Investor"
means the Buyer, any transferee or assignee thereof to whom a Buyer assigns its rights under this Agreement in accordance with
Section 9 and who agrees to become bound by the provisions of this Agreement and any transferee or assignee thereof to whom a transferee
or assignee assigns its rights under this Agreement in accordance with Section 9 and who agrees to become bound by the provisions
of this Agreement.

 

b."Person"
means any individual or entity including but not limited to any corporation, a limited liability company, an association, a partnership,
an organization, a business, an individual, a governmental or political subdivision thereof or a governmental agency.

 

c."Register,"
"registered," and "registration" refer to a registration effected by preparing and filing one
or more registration statements of the Company in compliance with the Securities Act and pursuant to Rule 415 under the Securities
Act or any successor rule providing for offering securities on a continuous basis ("Rule 415"), and the declaration
or ordering of effectiveness of such registration statement(s) by the United States Securities and Exchange Commission (the "SEC").

d."Registrable
Securities" means (i) all of the Purchase Shares and all of the Commitment Shares which may from time to time be issued
or issuable to the Investor under the Purchase Agreement (without regard to any limitation or restriction on purchases), and (ii)
any shares of capital stock issued or issuable with respect to the Purchase Shares, the Commitment Shares or the Purchase
Agreement as a result of any stock split, stock dividend, recapitalization, exchange or similar event or otherwise, without regard
to any limitation on purchases under the Purchase Agreement.

 

    	 

    	 

    

 

e."Registration
Statement" means a registration statement of the Company covering only the sale of the Registrable Securities.

 

		2.	REGISTRATION.

 

a.Mandatory Registration.
The Company shall, within thirty (30) days from the date hereof, file with the SEC the Registration Statement. The Registration
Statement shall register only the resale of the Registrable Securities and no other securities of the Company. The Registration
Statement, upon filing with the SEC and at the time it is declared effective by the SEC, shall satisfy all of the requirements
of the Securities Act to register the resale of the Registrable Securities by the Investor in accordance with this Agreement under
Rule 415 promulgated under the Securities Act at then-prevailing market prices, and not fixed prices. The Investor and its counsel
shall have a reasonable opportunity to review and comment upon such Registration Statement or amendment to such Registration Statement
and any related prospectus prior to its filing with the SEC. Investor shall furnish all information reasonably requested by the
Company for inclusion therein. The Company shall use its best efforts to have the Registration Statement or amendment declared
effective by the SEC at the earliest possible date after the filing thereof. The Company shall use its best efforts to keep the
Registration Statement effective pursuant to Rule 415 promulgated under the Securities Act and available for sales of all of the
Registrable Securities at all times until the earlier of (i) the date as of which the Investor may sell all of the Registrable
Securities without restriction pursuant to Rule 144 promulgated under the Securities Act (or successor thereto) or (ii) the date
on which the Investor shall have sold all the Registrable Securities and no Available Amount remains under the Purchase Agreement
(the "Registration Period"). The Registration Statement (including any amendments or supplements thereto and prospectuses
contained therein) shall not contain any untrue statement of a material fact or omit to state a material fact required to be stated
therein, or necessary to make the statements therein, in light of the circumstances in which they were made, not misleading.

 

b.Rule 424 Prospectus.
The Company shall, as required by applicable securities regulations, from time to time file with the SEC, pursuant to Rule 424
promulgated under the Securities Act, the prospectus and prospectus supplements, if any, to be used in connection with sales of
the Registrable Securities under the Registration Statement. The Investor and its counsel shall have a reasonable opportunity to
review and comment upon such prospectus prior to its filing with the SEC. The Investor shall use its reasonable best efforts to
comment upon such prospectus within one (1) Business Day from the date the Investor receives the final version of such prospectus.

 

c.Sufficient Number
of Shares Registered. In the event the number of shares available under the Registration Statement is insufficient to cover
all of the Registrable Securities, the Company shall amend the Registration Statement or file a new registration statement (a ”New
Registration Statement”), so as to cover all of such Registrable Securities as soon as practicable, but in any event
not later than ten (10) Business Days after the necessity therefor arises, subject to any limits that may be imposed by the SEC
pursuant to Rule 415 under the Securities Act. The Company shall use its best efforts to cause such amendment and/or New Registration
Statement to become effective as soon as practicable following the filing thereof.

 

		3.	RELATED OBLIGATIONS.

 

With respect to the
Registration Statement and whenever any Registrable Securities are to be registered pursuant to Section 2 including on any New
Registration Statement, the Company shall use its reasonable best efforts to effect the registration of the Registrable Securities
in accordance with this Agreement and, pursuant thereto, the Company shall have the following obligations:

 

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a.The Company shall
prepare and file with the SEC such amendments (including post-effective amendments) and supplements to any registration statement
and the prospectus used in connection with such registration statement, which prospectus is to be filed pursuant to Rule 424 promulgated
under the Securities Act, as may be necessary to keep the Registration Statement or any New Registration Statement effective at
all times during the Registration Period, and, during such period, comply with the provisions of the Securities Act with respect
to the disposition of all Registrable Securities of the Company covered by the Registration Statement or any New Registration Statement
until such time as all of such Registrable Securities shall have been disposed of in accordance with this Agreement by the Buyer
as set forth in such registration statement.

 

b.The Company shall
permit the Investor to review and comment upon the Registration Statement or any New Registration Statement and all amendments
and supplements thereto at least two (2) Business Days prior to their filing with the SEC, and not file any document in a form
to which Investor reasonably objects. The Investor shall use its reasonable best efforts to comment upon the Registration Statement
or any New Registration Statement and any amendments or supplements thereto within two (2) Business Days from the date the Investor
receives the final version thereof. The Company shall furnish to the Investor, without charge any correspondence from the SEC or
the staff of the SEC to the Company or its representatives relating to the Registration Statement or any New Registration Statement.

 

c.Upon request of
the Investor, the Company shall furnish to the Investor, (i) promptly after the same is prepared and filed with the SEC, at least
one copy of such registration statement and any amendment(s) thereto, including financial statements and schedules, all documents
incorporated therein by reference and all exhibits, (ii) upon the effectiveness of any registration statement, a copy of the prospectus
included in such registration statement and all amendments and supplements thereto (or such other number of copies as the Investor
may reasonably request) and (iii) such other documents, including copies of any preliminary or final prospectus, as the Investor
may reasonably request from time to time in order to facilitate the disposition of the Registrable Securities owned by the Investor.

 

d.The Company shall
use reasonable best efforts to (i) register and qualify the Registrable Securities covered by a registration statement under such
other securities or "blue sky" laws of such jurisdictions in the United States as the Investor reasonably requests, (ii)
prepare and file in those jurisdictions, such amendments (including post-effective amendments) and supplements to such registrations
and qualifications as may be necessary to maintain the effectiveness thereof during the Registration Period, (iii) take such other
actions as may be necessary to maintain such registrations and qualifications in effect at all times during the Registration Period,
and (iv) take all other actions reasonably necessary or advisable to qualify the Registrable Securities for sale in such jurisdictions;
provided, however, that the Company shall not be required in connection therewith or as a condition thereto to (x) qualify to do
business in any jurisdiction where it would not otherwise be required to qualify but for this Section 3(d), (y) subject itself
to general taxation in any such jurisdiction, or (z) file a general consent to service of process in any such jurisdiction. The
Company shall promptly notify the Investor who holds Registrable Securities of the receipt by the Company of any notification with
respect to the suspension of the registration or qualification of any of the Registrable Securities for sale under the securities
or "blue sky" laws of any jurisdiction in the United States or its receipt of actual notice of the initiation or threatening
of any proceeding for such purpose.

 

e.As promptly as
practicable after becoming aware of such event or facts, the Company shall notify the Investor in writing of the happening of any
event or existence of such facts as a result of which the prospectus included in any registration statement, as then in effect,
includes an untrue statement of a material fact or omits to state a material fact required to be stated therein or necessary to
make the statements therein, in light of the circumstances under which they were made, not misleading, and promptly prepare a supplement
or amendment to such registration statement to correct such untrue statement or omission, and deliver a copy of such supplement
or amendment to the Investor (or such other number of copies as the Investor may reasonably request). The Company shall also promptly
notify the Investor in writing (i) when a prospectus or any prospectus supplement or post-effective amendment has been filed, and
when a registration statement or any post-effective amendment has become effective (notification of such effectiveness shall be
delivered to the Investor by facsimile on the same day of such effectiveness and by overnight mail), (ii) of any request by the
SEC for amendments or supplements to any registration statement or related prospectus or related information, and (iii) of the
Company's reasonable determination that a post-effective amendment to a registration statement would be appropriate.

 

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f.The Company shall
use its reasonable best efforts to prevent the issuance of any stop order or other suspension of effectiveness of any registration
statement, or the suspension of the qualification of any Registrable Securities for sale in any jurisdiction and, if such an order
or suspension is issued, to obtain the withdrawal of such order or suspension at the earliest possible moment and to notify the
Investor of the issuance of such order and the resolution thereof or its receipt of actual notice of the initiation or threat of
any proceeding for such purpose.

 

g.The Company shall
(i) cause all the Registrable Securities to be listed on each securities exchange on which securities of the same class or series
issued by the Company are then listed, and (ii) secure designation and quotation of all the Registrable Securities on the Principal
Market. The Company shall pay all fees and expenses in connection with satisfying its obligation under this Section.

 

h.The Company shall
cooperate with the Investor to facilitate the timely issuance of the Registrable Securities as set forth in the Purchase Agreement,
it being agreed that all Registrable Securities to be issued pursuant to the Purchase Agreement shall be issued as DWAC Shares.

 

i.The Company shall
at all times provide a transfer agent and registrar with respect to its Common Stock.

 

j.If reasonably requested
by the Investor, the Company shall (i) immediately incorporate in a prospectus supplement or post-effective amendment such information
as the Investor believes should be included therein relating to the sale and distribution of Registrable Securities, including,
without limitation, information with respect to the number of Registrable Securities being sold, the purchase price being paid
therefor and any other terms of the offering of the Registrable Securities; (ii) make all required filings of such prospectus supplement
or post-effective amendment as soon as notified of the matters to be incorporated in such prospectus supplement or post-effective
amendment; and (iii) supplement or make amendments to any registration statement.

 

k.The Company shall
use its reasonable best efforts to cause the Registrable Securities covered by any registration statement to be registered with
or approved by such other governmental agencies or authorities as may be necessary to consummate the disposition of such Registrable
Securities.

 

l.Within one (1)
Business Day after any registration statement which includes the Registrable Securities is ordered effective by the SEC, the Company
shall deliver, and shall cause legal counsel for the Company to deliver, to the transfer agent for such Registrable Securities
(with copies to the Investor) confirmation that such registration statement has been declared effective by the SEC in the form
attached hereto as Exhibit A. Thereafter, if requested by the Buyer at any time, the Company shall require its counsel to
deliver to the Buyer a written confirmation whether or not the effectiveness of such registration statement has lapsed at any time
for any reason (including, without limitation, the issuance of a stop order) and whether or not the registration statement is current
and available to the Buyer for sale of all of the Registrable Securities.

 

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m.The Company shall
take all other reasonable actions necessary to expedite and facilitate disposition by the Investor of Registrable Securities pursuant
to any registration statement.

 

		4.	OBLIGATIONS OF THE INVESTOR.

 

a.The Company shall
notify the Investor in writing of the information the Company reasonably requires from the Investor in connection with any registration
statement hereunder. Within two (2) business days of the Company’s request, the Investor shall furnish to the Company such
information regarding itself, the Registrable Securities held by it and the intended method of disposition of the Registrable Securities
held by it as shall be reasonably required to effect the registration of such Registrable Securities and shall execute such documents
in connection with such registration as the Company may reasonably request.

 

b.The Investor agrees
to cooperate with the Company as reasonably requested by the Company in connection with the preparation and filing of any registration
statement hereunder.

 

c.The Investor agrees
that, upon receipt of any notice from the Company of the happening of any event or existence of facts of the kind described in
Section 3(f) or the first sentence of 3(e), the Investor will immediately discontinue disposition of Registrable Securities pursuant
to any registration statement(s) covering such Registrable Securities until the Investor's receipt of the copies of the supplemented
or amended prospectus contemplated by Section 3(f) or the first sentence of 3(e). Notwithstanding anything to the contrary, the
Company shall cause its transfer agent to promptly deliver shares of Common Stock without any restrictive legend in accordance
with the terms of the Purchase Agreement in connection with any sale of Registrable Securities with respect to which an Investor
has entered into a contract for sale prior to the Investor's receipt of a notice from the Company of the happening of any event
of the kind described in Section 3(f) or the first sentence of 3(e) and for which the Investor has not yet settled.

 

		5.	EXPENSES OF REGISTRATION.

 

All reasonable expenses,
other than sales or brokerage commissions, incurred in connection with registrations, filings or qualifications pursuant to Sections
2 and 3, including, without limitation, all registration, listing and qualifications fees, printers and accounting fees, and fees
and disbursements of counsel for the Company, shall be paid by the Company.

 

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		6.	INDEMNIFICATION.

 

a.To the fullest
extent permitted by law, the Company will, and hereby does, indemnify, hold harmless and defend the Investor, each Person, if any,
who controls the Investor, the members, the directors, officers, partners, employees, agents, representatives of the Investor and
each Person, if any, who controls the Investor within the meaning of the Securities Act or the Securities Exchange Act of 1934,
as amended (the "Exchange Act") (each, an "Indemnified Person"), against any losses, claims,
damages, liabilities, judgments, fines, penalties, charges, costs, attorneys' fees, amounts paid in settlement or expenses, joint
or several, (collectively, "Claims") incurred in investigating, preparing or defending any action, claim, suit,
inquiry, proceeding, investigation or appeal taken from the foregoing by or before any court or governmental, administrative or
other regulatory agency, body or the SEC, whether pending or threatened, whether or not an indemnified party is or may be a party
thereto ("Indemnified Damages"), to which any of them may become subject insofar as such Claims (or actions or
proceedings, whether commenced or threatened, in respect thereof) arise out of or are based upon: (i) any untrue statement or alleged
untrue statement of a material fact in the Registration Statement, any New Registration Statement or any post-effective amendment
thereto or in any filing made in connection with the qualification of the offering under the securities or other "blue sky"
laws of any jurisdiction in which Registrable Securities are offered ("Blue Sky Filing"), or the omission or alleged
omission to state a material fact required to be stated therein or necessary to make the statements therein not misleading, (ii)
any untrue statement or alleged untrue statement of a material fact contained in the final prospectus (as amended or supplemented,
if the Company files any amendment thereof or supplement thereto with the SEC) or the omission or alleged omission to state therein
any material fact necessary to make the statements made therein, in light of the circumstances under which the statements therein
were made, not misleading, (iii) any violation or alleged violation by the Company of the Securities Act, the Exchange Act, any
other law, including, without limitation, any state securities law, or any rule or regulation thereunder relating to the offer
or sale of the Registrable Securities pursuant to the Registration Statement or any New Registration Statement or (iv) any material
violation by the Company of this Agreement (the matters in the foregoing clauses (i) through (iv) being, collectively, "Violations").
The Company shall reimburse each Indemnified Person promptly as such expenses are incurred and are due and payable, for any reasonable
legal fees or other reasonable expenses incurred by them in connection with investigating or defending any such Claim. Notwithstanding
anything to the contrary contained herein, the indemnification agreement contained in this Section 6(a): (i) shall not apply to
a Claim by an Indemnified Person arising out of or based upon a Violation which occurs in reliance upon and in conformity with
information about the Investor furnished in writing to the Company by such Indemnified Person expressly for use in connection with
the preparation of the Registration Statement, any New Registration Statement or any such amendment thereof or supplement thereto,
if such prospectus was timely made available by the Company pursuant to Section 3(c) or Section 3(e); (ii) with respect to any
superseded prospectus, shall not inure to the benefit of any such person from whom the person asserting any such Claim purchased
the Registrable Securities that are the subject thereof (or to the benefit of any person controlling such person) if the untrue
statement or omission of material fact contained in the superseded prospectus was corrected in the revised prospectus, as then
amended or supplemented, if such revised prospectus was timely made available by the Company pursuant to Section 3(c) or Section
3(e), and the Indemnified Person was promptly advised in writing not to use the incorrect prospectus prior to the use giving rise
to a violation and such Indemnified Person, notwithstanding such advice, used it; (iii) shall not be available to the extent such
Claim is based on a failure of the Investor to deliver or to cause to be delivered the prospectus made available by the Company,
if such prospectus was timely made available by the Company pursuant to Section 3(c) or Section 3(e); and (iv) shall not apply
to amounts paid in settlement of any Claim if such settlement is effected without the prior written consent of the Company, which
consent shall not be unreasonably withheld. Such indemnity shall remain in full force and effect regardless of any investigation
made by or on behalf of the Indemnified Person and shall survive the transfer of the Registrable Securities by the Investor pursuant
to Section 9.

 

b.In connection with
the Registration Statement or any New Registration Statement, the Investor agrees to severally and not jointly indemnify, hold
harmless and defend, to the same extent and in the same manner as is set forth in Section 6(a), the Company, each of its directors,
each of its officers who signs the Registration Statement or any New Registration Statement, each Person, if any, who controls
the Company within the meaning of the Securities Act or the Exchange Act (collectively and together with an Indemnified Person,
an "Indemnified Party"), against any Claim or Indemnified Damages to which any of them may become subject, under
the Securities Act, the Exchange Act or otherwise, insofar as such Claim or Indemnified Damages arise out of or are based upon
any Violation, in each case to the extent, and only to the extent, that such Violation occurs in reliance upon and in conformity
with written information about the Investor set forth on Exhibit B attached hereto and furnished to the Company by the Investor
expressly for use in connection with such registration statement; and, subject to Section 6(d), the Investor will reimburse any
legal or other expenses reasonably incurred by them in connection with investigating or defending any such Claim; provided, however,
that the indemnity agreement contained in this Section 6(b) and the agreement with respect to contribution contained in Section
7 shall not apply to amounts paid in settlement of any Claim if such settlement is effected without the prior written consent of
the Investor, which consent shall not be unreasonably withheld; provided, further, however, that the Investor shall be liable under
this Section 6(b) for only that amount of a Claim or Indemnified Damages as does not exceed the net proceeds to the Investor as
a result of the sale of Registrable Securities pursuant to such registration statement. Such indemnity shall remain in full force
and effect regardless of any investigation made by or on behalf of such Indemnified Party and shall survive the transfer of the
Registrable Securities by the Investor pursuant to Section 9.

 

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c.Promptly after
receipt by an Indemnified Person or Indemnified Party under this Section 6 of notice of the commencement of any action or proceeding
(including any governmental action or proceeding) involving a Claim, such Indemnified Person or Indemnified Party shall, if a Claim
in respect thereof is to be made against any indemnifying party under this Section 6, deliver to the indemnifying party a written
notice of the commencement thereof, and the indemnifying party shall have the right to participate in, and, to the extent the indemnifying
party so desires, jointly with any other indemnifying party similarly noticed, to assume control of the defense thereof with counsel
mutually satisfactory to the indemnifying party and the Indemnified Person or the Indemnified Party, as the case may be; provided,
however, that an Indemnified Person or Indemnified Party shall have the right to retain its own counsel with the fees and expenses
to be paid by the indemnifying party, if, in the reasonable opinion of counsel retained by the indemnifying party, the representation
by such counsel of the Indemnified Person or Indemnified Party and the indemnifying party would be inappropriate due to actual
or potential differing interests between such Indemnified Person or Indemnified Party and any other party represented by such counsel
in such proceeding. The Indemnified Party or Indemnified Person shall cooperate fully with the indemnifying party in connection
with any negotiation or defense of any such action or claim by the indemnifying party and shall furnish to the indemnifying party
all information reasonably available to the Indemnified Party or Indemnified Person which relates to such action or claim. The
indemnifying party shall keep the Indemnified Party or Indemnified Person fully apprised at all times as to the status of the defense
or any settlement negotiations with respect thereto. No indemnifying party shall be liable for any settlement of any action, claim
or proceeding effected without its written consent, provided, however, that the indemnifying party shall not unreasonably withhold,
delay or condition its consent. No indemnifying party shall, without the consent of the Indemnified Party or Indemnified Person,
consent to entry of any judgment or enter into any settlement or other compromise which does not include as an unconditional term
thereof the giving by the claimant or plaintiff to such Indemnified Party or Indemnified Person of a release from all liability
in respect to such claim or litigation. Following indemnification as provided for hereunder, the indemnifying party shall be subrogated
to all rights of the Indemnified Party or Indemnified Person with respect to all third parties, firms or corporations relating
to the matter for which indemnification has been made. The failure to deliver written notice to the indemnifying party within a
reasonable time of the commencement of any such action shall not relieve such indemnifying party of any liability to the Indemnified
Person or Indemnified Party under this Section 6, except to the extent that the indemnifying party is prejudiced in its ability
to defend such action.

 

d.The indemnification
required by this Section 6 shall be made by periodic payments of the amount thereof during the course of the investigation or defense,
as and when bills are received or Indemnified Damages are incurred.

 

e.The indemnity agreements
contained herein shall be in addition to (i) any cause of action or similar right of the Indemnified Party or Indemnified Person
against the indemnifying party or others, and (ii) any liabilities the indemnifying party may be subject to pursuant to the law.

 

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		7.	CONTRIBUTION.

 

To the extent any indemnification
by an indemnifying party is prohibited or limited by law, the indemnifying party agrees to make the maximum contribution with respect
to any amounts for which it would otherwise be liable under Section 6 to the fullest extent permitted by law; provided, however,
that: (i) no seller of Registrable Securities guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the
Securities Act) shall be entitled to contribution from any seller of Registrable Securities who was not guilty of fraudulent misrepresentation;
and (ii) contribution by any seller of Registrable Securities shall be limited in amount to the net amount of proceeds received
by such seller from the sale of such Registrable Securities.

 

		8.	REPORTS AND DISCLOSURE UNDER THE SECURITIES ACTS.

 

With a view to making
available to the Investor the benefits of Rule 144 promulgated under the Securities Act or any other similar rule or regulation
of the SEC that may at any time permit the Investor to sell securities of the Company to the public without registration ("Rule
144"), the Company agrees, at the Company’s sole expense, to:

 

a.make and keep public
information available, as those terms are understood and defined in Rule 144;

 

b.file with the SEC
in a timely manner all reports and other documents required of the Company under the Securities Act and the Exchange Act so long
as the Company remains subject to such requirements and the filing of such reports and other documents is required for the applicable
provisions of Rule 144;

 

c.furnish to the
Investor so long as the Investor owns Registrable Securities, promptly upon request, (i) a written statement by the Company that
it has complied with the reporting and or disclosure provisions of Rule 144, the Securities Act and the Exchange Act, (ii) a copy
of the most recent annual or quarterly report of the Company and such other reports and documents so filed by the Company, and
(iii) such other information as may be reasonably requested to permit the Investor to sell such securities pursuant to Rule 144
without registration; and

 

d.take such additional action as
is requested by the Investor to enable the Investor to sell the Registrable Securities pursuant to Rule 144, including, without
limitation, delivering all such legal opinions, consents, certificates, resolutions and instructions to the Company’s Transfer
Agent as may be requested from time to time by the Investor and otherwise fully cooperate with Investor and Investor’s broker
to effect such sale of securities pursuant to Rule 144.

 

The Company agrees
that damages may be an inadequate remedy for any breach of the terms and provisions of this Section 8 and that Investor shall,
whether or not it is pursuing any remedies at law, be entitled to equitable relief in the form of a preliminary or permanent injunctions,
without having to post any bond or other security, upon any breach or threatened breach of any such terms or provisions.

 

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		9.	ASSIGNMENT OF REGISTRATION RIGHTS.

 

The Company shall not
assign this Agreement or any rights or obligations hereunder without the prior written consent of the Investor. The Investor may
not assign its rights under this Agreement without the written consent of the Company, other than to an affiliate of the Investor
controlled by Jonathan Cope or Josh Scheinfeld.

 

		10.	INTENTIONALLY OMITTED.

 

 

		11.	MISCELLANEOUS.

 

a.A Person is deemed
to be a holder of Registrable Securities whenever such Person owns or is deemed to own of record such Registrable Securities. If
the Company receives conflicting instructions, notices or elections from two or more Persons with respect to the same Registrable
Securities, the Company shall act upon the basis of instructions, notice or election received from the registered owner of such
Registrable Securities.

 

b.Any notices, consents,
waivers or other communications required or permitted to be given under the terms of this Agreement must be in writing and will
be deemed to have been delivered: (i) upon receipt, when delivered personally; (ii) upon receipt, when sent by facsimile (provided
confirmation of transmission is mechanically or electronically generated and kept on file by the sending party); or (iii) one (1)
Business Day after deposit with a nationally recognized overnight delivery service, in each case properly addressed to the party
to receive the same. The addresses and facsimile numbers for such communications shall be:

 

If to the Company:

 

Elite Pharmaceuticals, Inc.

165 Ludlow Avenue

Northvale, New Jersey 07647

Telephone:201-750-2646

Facsimile:201-750-2755

Attention:Carter Ward, CFO

 

 

 

With a copy to:

Richard Feiner, Esq.

381 Park Avenue South

16th Floor

New York, NY 10016

Telephone:212-779-8600

Facsimile:917-720-0863

 

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If to the Investor:

Lincoln Park Capital
Fund, LLC

440 N. Wells, Suite 410

Chicago, IL 60654

Telephone:312-822-9300

Facsimile:312-822-9301

Attention:Josh Scheinfeld/Jonathan
Cope

 

 

or at such other address and/or facsimile
number and/or to the attention of such other person as the recipient party has specified by written notice given to each other
party three (3) Business Days prior to the effectiveness of such change. Written confirmation of receipt (A) given by the recipient
of such notice, consent, waiver or other communication, (B) mechanically or electronically generated by the sender's facsimile
machine containing the time, date, recipient facsimile number and an image of the first page of such transmission or (C) provided
by a nationally recognized overnight delivery service, shall be rebuttable evidence of personal service, receipt by facsimile or
receipt from a nationally recognized overnight delivery service in accordance with clause (i), (ii) or (iii) above, respectively.

 

c.No provision of
this Agreement may be amended or waived by the parties from and after the date that is one Business Day immediately preceding the
initial filing of the Registration Statement with the SEC. Subject to the immediately preceding sentence, no provision of this
Agreement may be (i) amended other than by a written instrument signed by both parties hereto or (ii) waived other than in a written
instrument signed by the party against whom enforcement of such waiver is sought. Failure of any party to exercise any right or
remedy under this Agreement or otherwise, or delay by a party in exercising such right or remedy, shall not operate as a waiver
thereof.

 

d.The corporate laws
of the State of Nevada shall govern all issues concerning the relative rights of the Company and its stockholders. All other questions
concerning the construction, validity, enforcement and interpretation of this Agreement shall be governed by the internal laws
of the State of Illinois, without giving effect to any choice of law or conflict of law provision or rule (whether of the State
of Illinois or any other jurisdictions) that would cause the application of the laws of any jurisdictions other than the State
of Illinois. Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting the City
of Chicago, 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, that such suit, action or proceeding is brought in an inconvenient
forum or that the venue of such suit, action or proceeding is improper. Each party hereby irrevocably waives personal service of
process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof to such party at
the address for such 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. If any provision of this Agreement shall be invalid or unenforceable in any jurisdiction, such invalidity or
unenforceability shall not affect the validity or enforceability of the remainder of this Agreement in that jurisdiction or the
validity or enforceability of any provision of this Agreement in any other jurisdiction. EACH PARTY HEREBY IRREVOCABLY WAIVES
ANY RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION HEREWITH
OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY.

 

    	10

    	 

    

 

e.This Agreement,
and the Purchase Agreement constitute the entire agreement among the parties hereto with respect to the subject matter hereof and
thereof. There are no restrictions, promises, warranties or undertakings, other than those set forth or referred to herein and
therein. This Agreement and the Purchase Agreement supersede all prior agreements and understandings among the parties hereto with
respect to the subject matter hereof and thereof.

 

f.Subject to the
requirements of Section 9, this Agreement shall inure to the benefit of and be binding upon the successors and permitted assigns
of each of the parties hereto.

 

g.The headings in
this Agreement are for convenience of reference only and shall not limit or otherwise affect the meaning hereof.

 

h.This Agreement
may be executed in identical counterparts, each of which shall be deemed an original but all of which shall constitute one and
the same agreement. This Agreement, once executed by a party, may be delivered to the other party hereto by facsimile transmission
of a copy of this Agreement bearing the signature of the party so delivering this Agreement or by e-mail in a “.pdf”
format data file.

 

i.Each party shall
do and perform, or cause to be done and performed, all such further acts and things, and shall execute and deliver all such other
agreements, certificates, instruments and documents, as the other party may reasonably request in order to carry out the intent
and accomplish the purposes of this Agreement and the consummation of the transactions contemplated hereby.

 

j.The language used
in this Agreement will be deemed to be the language chosen by the parties to express their mutual intent and no rules of strict
construction will be applied against any party.

 

k.This Agreement
is intended for the benefit of the parties hereto and their respective successors and permitted assigns, and is not for the benefit
of, nor may any provision hereof be enforced by, any other Person.

 

 

 

* * * * * *

 

    	11

    	 

    

 

 

IN WITNESS WHEREOF,
the parties have caused this Registration Rights Agreement to be duly executed as of day and year first above written.

 

 

 

		THE COMPANY:	 
	 	 	 	 
	 	ELITE PHARMACEUTICALS, INC.
	 	 	 	 
	 	 	 	 
	 	By:	/s/ Nasrat Hakim	              
	 	Name: Nasrat Hakim	 
	 	Title:         CEO	 
	 	 	 	 
	 	 	 	 
	 	BUYER:	 
	 	 	 	 
	 	LINCOLN PARK CAPITAL FUND, LLC
	 	BY: LINCOLN PARK CAPITAL PARTNERS, LLC
	 	BY: ROCKLEDGE CAPITAL CORPORATION
	 	 	 	 
	 	By:	/s/Josh Scheinfeld	 
	 	Name: Josh Scheinfeld	 
	 	Title: President	 

  

    	12

    	 

    

EXHIBIT A

 

TO REGISTRATION RIGHTS AGREEMENT

 

FORM OF NOTICE OF EFFECTIVENESS

OF REGISTRATION STATEMENT

 

[Date]

 

[TRANSFER AGENT]

___________________

___________________

Re: [__________]

 

Ladies and Gentlemen:

 

We are counsel to
ELITE PHARMACEUTICALS, INC., a Nevada corporation (the “Company”), and have represented the Company in
connection with that certain Purchase Agreement, dated as of _________, 2014 (the “Purchase Agreement”), entered
into by and between the Company and Lincoln Park Capital Fund, LLC (the “Buyer”) pursuant to which the Company
has agreed to issue to the Buyer shares of the Company's Common Stock, par value $.001 per share (the “Common Stock”),
in an amount up to Forty Million Dollars ($40,000,000) (the “Purchase Shares”), in accordance with the terms
of the Purchase Agreement. In connection with the transactions contemplated by the Purchase Agreement, the Company has registered
with the U.S. Securities & Exchange Commission the following shares of Common Stock:

 

		1)	[_______] shares of Common Stock to be issued upon purchase from the Company by the Buyer from
time to time (the “Purchase Shares,”).

		2)	1,928,641 shares of Common Stock which have been issued to the Buyer as a commitment fee (the “Commitment
Shares”). 

		3)	1,928,641 shares of Common Stock to be issued in connection with each purchase of Purchase Shares
as a commitment fee (the “Additional Commitment Shares”)

 

 

 

Pursuant to the Purchase Agreement, the
Company also has entered into a Registration Rights Agreement, dated as of ______, 2014, with the Buyer (the “Registration
Rights Agreement”) pursuant to which the Company agreed, among other things, to register the Purchase Shares and the
Commitment Shares under the Securities Act of 1933, as amended (the “Securities Act”). In connection with the
Company's obligations under the Purchase Agreement and the Registration Rights Agreement, on _______, 2014, the Company filed a
Registration Statement (File No. 333-_________) (the “Registration Statement”) with the Securities and Exchange
Commission (the “SEC”) relating to the sale of the Purchase Shares, and the Additional Commitment Shares.

 

    	 

    	 

    

 

In connection with
the foregoing, we advise you that a member of the SEC's staff has advised us by telephone that the SEC has entered an order declaring
the Registration Statement effective under the Securities Act at _____ P.M. on __________, 2014 and we have no knowledge, after
telephonic inquiry of a member of the SEC's staff, that any stop order suspending its effectiveness has been issued or that any
proceedings for that purpose are pending before, or threatened by, the SEC and the Purchase Shares and the Commitment Shares are
available for sale under the Securities Act pursuant to the Registration Statement and may issued without any restrictive legend.

 

	 	Very truly yours,
	 	[Company Counsel]
	 	 
	 	 
	 	By:____________________

 

 

CC:Lincoln Park Capital Fund, LLC

  

    	 

    	 

    

  

EXHIBIT B

 

TO REGISTRATION RIGHTS AGREEMENT

 

Information About The Investor Furnished
To The Company By The Investor 

Expressly For Use In Connection With
The Registration Statement

 

 

As of the date of the Purchase Agreement,
Lincoln Park Capital Fund, LLC, beneficially owned _______ shares of common stock of the Company. Josh Scheinfeld and Jonathan
Cope, the Managing Members of Lincoln Park Capital, LLC, are deemed to be beneficial owners of all of the shares of common stock
owned by Lincoln Park Capital Fund. Messrs. Cope and Scheinfeld have shared voting and investment power over the shares being offered
under the prospectus filed with the SEC in connection with the transactions contemplated under the Purchase Agreement. Lincoln
Park Capital is not a licensed broker dealer or an affiliate of a licensed broker dealer.Separation and Release of Claims Agreement

 

This Separation and
Release of Claims Agreement (this “Agreement”) is dated as of April 8, 2014 (the “Execution Date”),
by and between MusclePharm Corporation, a Nevada corporation (the “Company”), on behalf of itself, its subsidiaries
and other corporate affiliates and each of their respective employees, officers, directors, owners, shareholders and agents (collectively
referred to herein as, the “Employer Group”), and L. Gary Davis (the “Employee”). The Company
and the Employee are sometimes collectively referred to herein as the “Parties.”

 

Agreement

 

NOW,
THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are acknowledged,
the Company (on its own behalf and on behalf of its successors and assigns) and the Employee hereby agree as follows:

 

1.          The
Employee’s Separation. The Executive’s employment with the Company will terminate effective as of December 31,
2014 (the “Separation Date”), and the Employee has provided his resignation (attached hereto as Exhibit
A). After the Separation Date, the Employee will not represent himself as being an employee, officer, or attorney of the Company
for any purpose. Except as otherwise set forth in this Agreement, the Separation Date will be the employment termination date
for the Employee for all purposes, meaning the Employee will no longer be entitled to any further compensation, monies or other
benefits from the Company, including coverage under any benefits plans or programs sponsored by the Company. The Employee hereby
resigns, effective as of the Separation Date, all positions, titles, duties, authorities and responsibilities with, arising out
of or relating to his employment with the Company and any subsidiaries and affiliates and agrees to execute any and all additional
documents and take such further steps as may be required to effectuate such resignation. The Employment Agreement is hereby canceled
and the parties shall have no further obligations to each other thereunder except as specifically provided in this Agreement.

 

2.          Transition.
The Company will work with the Employee, beginning upon the execution of this Agreement, to transition him from the Chief Financial
Officer position into a Special Projects role whereby Employee shall step down from his position as Chief Financial Officer, and
as a named executive officer, in particular for the purposes of the reporting requirements of Section 16 of the Securities and
Exchange Act of 1934, as amended, with such resignation from the position as Chief Financial Officer to be effective as of April
15, 2014. The Employee will report to Richard Estalella for the remainder of his employment. The Employee will focus on special
projects assigned by either Brad Pyatt or Richard Estalella that will leverage his expertise throughout the remainder of the year.
He will work from home and travel to the Denver Corporate as needed. It is expected that these projects will warrant an average
of 20 hours a week of effort on the part of the employee. Employee may be retained on a contract basis after the termination date
if mutually agreed to by both parties as it relates to both term and rate of pay.

 

    	1

    	 

    

 

3.          Certain
Payments and Benefits.

 

(a)          Payment.
The Employee acknowledges will continue to receive his base salary up to and including the Separation Date, less applicable withholdings.
Regardless of whether the Employee revokes his Release, the Employee will be paid on the first payroll date after the Separation
Date: (i) all unpaid bonus money earned up to and including the Separation Date (the Parties acknowledge and agree that the Employee
has an accrued and unpaid bonus in the amount of $62,500.00, less applicable withholdings (the “Final Bonus Payment”));
(ii) all accrued but unused vacation time earned up to and including the Separation Date, less applicable withholdings, for which
he will be paid); and (iii) any previously unreimbursed legitimate business expenses to which the Employee is entitled to reimbursement
following submission of proper expense reports under the Company’s business expense reimbursement policy.

 

(b)          Separation
Benefits. In consideration for the Employee’s execution, non-revocation of, and compliance with this Agreement, including
the Release (as defined below in Section 3(a)) in Section 3, the Company agrees to provide the following benefits:

 

(i)          Target
Bonus. The Company will pay the Employee a lump sum of $62,500 upon execution of this agreement, less applicable withholdings,
and will pay the Final Bonus Payment, which the Employee earned as of the Separation Date. For the avoidance of any doubt, the
Employee agrees and acknowledges that, except for the Final Bonus Payment, he is not be entitled to receive payment with respect
to any remaining portion of his 2013 target bonus, regardless of whether the performance goals are later achieved, because as
of the Separation Date, no other portion of this bonus amount has been earned.

 

(ii)         Restricted
Stock Units. The Restricted Stock Agreement dated July 1, 2013, by and between the Employee and the Company (the “RSU
Agreement”) shall be amended for any change of position,, and, notwithstanding anything contained in Section 9 of the RSU
Agreement, the unvested Restricted Stock Units shall vest according to the vesting schedule set forth in Section 1 of the RSU
Agreement, subject to the Employee’s compliance with Section 4 and Section 10 below. The company will remove any applicable
restrictions or limitations for a “Specified Employee” (as such term is defined in Treasury Regulation §1.409A-1(i)),
which may include a six (6) month delay in the issuance of shares of Common Stock upon the vesting of any Restricted Stock Units
under the RSU Agreement, allowable by law.

 

    	2

    	 

    

 

(iii)        The
Employee acknowledges that these benefits exceed what he is otherwise entitled to receive upon separation from employment, and
that these benefits are in exchange for executing this Agreement. The Employee further acknowledges no entitlement to any additional
payment or consideration not specifically referenced herein and shall receive no compensation for his service on the Board from
the Separation Date until his resignation from the Board.

 

4.          Release.

 

(a)          For
and in consideration of the receipt of the payments and other benefits and promises set forth in this Agreement, the Employee,
for the Employee, the Employee’s marital community and children, the Employee’s heirs, beneficiaries, devisees, executors,
administrators, attorneys, personal representatives, successors and assigns, hereby forever releases and discharges the Company
and the Employer Group, and any of their divisions, affiliates, subsidiaries, parents, predecessors, successors, assigns, and,
with respect to such entities, their officers, directors, managers, members, employees, agents, stockholders, administrators,
general or limited partners, representatives, attorneys, insurers and fiduciaries, past, present and future (collectively, the
“Released Parties”) from any and all claims of any kind arising out of, or related to, his employment and separation
from employment with the Company, its affiliates and subsidiaries (collectively, with the Company, the “Affiliated Entities”),
which the Employee now has or may have against the Released Parties, whether known or unknown to the Employee, and whether vicarious,
derivative, or direct (the “Release”). Such released claims include, without limitation, any and all claims
arising under federal, state or local laws pertaining to employment, including, without limitation, Title VII of the Civil Rights
Act of 1964, as amended, 42 U.S.C. Section 2000e et seq., the Age Discrimination in Employment Act, 29 U.S.C. 621 et seq. (“ADEA”),
the Older Workers Benefit Protection Act, the Fair Labor Standards Act, as amended, 29 U.S.C. Section 201 et seq., the Americans
with Disabilities Act, as amended, 42 U.S.C. Section 12101 et seq., the Reconstruction Era Civil Rights Act, as amended, 42 U.S.C.
Section 1981 et seq., the Rehabilitation Act of 1973, as amended, 29 U.S.C. Section 701 et seq., the Family and Medical Leave
Act of 1992, 29 U.S.C. Section 2601 et seq., and any and all other federal, state or local laws regarding employment discrimination
and/or federal, state, or local laws of any type or description regarding employment, including, but not limited to, any claims
arising from or derivative of the Employee’s employment and separation from employment with the Affiliated Entities, as
well as any and all such claims under state contract or tort law, including, without limitation, under the Employment Agreement,
and including any claim for attorneys’ fees. Notwithstanding anything else herein to the contrary, this Section 3 shall
not affect and does not release: (i) any claims that arise after the date the Employee executes this Agreement; (ii) any claims
that cannot be waived by applicable law; (iii) the Employee’s vested benefits under the Company’s qualified plans,
if any; or (iv) rights to indemnification or liability insurance coverage the Employee may have under the Indemnification Agreement,
the Articles of Incorporation and the Bylaws of the Company, or applicable law.

 

    	3

    	 

    

 

(b)          The
Employee hereby represents that the Employee has not filed or commenced any proceeding regarding the claims and matters discussed
in Section 3(a).

 

(c)          For
the purpose of implementing a full and complete release and discharge of the Released Parties, the Employee expressly acknowledges
that the Release is intended to include in its effect, without limitation, all claims or other matters described in Section 3(a)
that the Employee does not know or suspect to exist in the Employee’s favor at the time of execution hereof or upon the
termination of the Employee’s employment hereunder, and that the Release contemplates the extinguishment of any and all
such claims or other such matters. The Released Parties who are not parties to this Agreement are third-party beneficiaries of
the Release and are entitled to enforce its provisions.

 

(d)          The
Employee warrants that no promise or inducement has been offered for the Release other than as set forth herein and that the Release
is executed without reliance upon any other promises or representations, oral or written. Any modification of the Release must
be made in writing and be signed by the Employee and the Company.

 

(e)          If
any provision of the Release or compliance by the Employee or the Company with any provision of the Release constitutes a violation
of any law, or is or becomes unenforceable or void, then such provision, to the extent only that it is in violation of law, unenforceable
or void, will be deemed modified to the extent necessary so that it is no longer in violation of law, unenforceable or void, and
such provision will be enforced to the fullest extent permitted by law. If such modification is not possible, such provision,
to the extent that it is in violation of law, unenforceable or void, will be deemed severable from the remaining provisions of
the Release, which provisions will remain binding on both the Employee and the Company. The Release is governed by, and construed
and interpreted in accordance with the laws of the State of Colorado, without regard to principles of conflicts of law. The Release
represents the entire understanding of the Parties with respect to the subject matter herein, and no oral representations have
been made or relied upon by the Parties.

 

(f)          The
Employee acknowledges and agrees that he forever waives any right to recover, and will not request or accept, anything of value
from any of the Released Parties as compensation or damages growing out of, resulting from, or connected in any way with his employment
or the ending of his employment with the Company, the employment practices of the Company, or with any other act, conduct, or
omission of any of the Released Parties, other than as specifically set out in this Agreement, whether sought directly by him
or by any administrative agency or other public authority, individual, or group of individuals on his behalf.

 

    	4

    	 

    

 

(g)          The
Employee specifically agrees and acknowledges that: (i) he has read and understands the terms of this Agreement, including the
Release; (ii) he is hereby advised in writing by the Company to consult with an attorney prior to executing this Agreement; (iii)
following his execution of this Agreement he has seven (7) days in which to revoke his Release and that, if he chooses not to
so revoke, this Agreement shall become effective and enforceable on the eighth (8th) day following his execution of this Agreement
(the “Effective Date”). To revoke the Release, the Employee understands that he must give a written revocation
to the company, within the seven (7)-day period following the Execution Date. If the last day of the revocation period is a Saturday,
Sunday, or legal holiday in the State of Colorado, then the revocation period shall not expire until the next following day which
is not a Saturday, Sunday or legal holiday. If he revokes the Release, this Agreement will not become effective or enforceable
and the Employee acknowledges and agrees that he will not be entitled to any benefits in Sections 3(a)(i), 3(a)(ii), 3(b)(i),
and 3(b)(ii) hereof.

 

5.          Further
Promises, Undertakings, and Acknowledgements of the Employee.

 

(a)          Return
of Company Property. As of the Separation Date, the Employee shall promptly return to the Chief Executive Officer of the Company
in good and working condition all property of the Company or any of the other Released Parties in his possession, custody, or
control, including without limitation: (i) physical property, such as Company-provided equipment, computer and related equipment,
credit card(s), key(s), or identification or access card(s) or badge(s); (ii) access codes or passwords to the Company’s
information or security systems; and (iii) all Confidential Information (as defined below) and other physical or electronic documents
concerning the business or operations of the Company or any of the other Released Parties.

 

(b)          Removal
of Personal Property. The Employee acknowledges that he has removed all of his personal property from the Company’s
offices as of the date hereof.

 

(c)          Confidentiality.

 

(i)          The
Employee understands and acknowledges that during the course of his employment by the Company, he had access to and learned about
confidential, secret and proprietary documents, materials and other information, in tangible and intangible form, of and relating
to the Employer Group and its businesses and existing and prospective customers, suppliers, investors and other associated third
parties (collectively, “Confidential Information”). The Employee further understands and acknowledges that
this Confidential Information and the Company’s ability to reserve it for the exclusive knowledge and use of the Employer
Group is of great competitive importance and commercial value to the Company, and that improper use or disclosure of the Confidential
Information by the Employee might cause the Company to incur financial costs, loss of business advantage, liability under confidentiality
agreements with third parties, civil damages and criminal penalties.

 

    	5

    	 

    

 

(ii)         For
purposes of this Agreement, the term “Confidential Information” includes, but is not limited to, all information not
generally known to the public, in spoken, printed, electronic or any other form or medium, relating directly or indirectly to:
business processes, practices, methods, policies, plans, publications, documents, research, operations, services, strategies,
techniques, agreements, contracts, terms of agreements, transactions, potential transactions, negotiations, pending negotiations,
know-how, trade secrets, computer programs, computer software, applications, operating systems, software design, web design, work-in-process,
databases, manuals, records, articles, systems, material, sources of material, supplier information, vendor information, financial
information, results, accounting information, accounting records, legal information, marketing information, advertising information,
pricing information, credit information, design information, payroll information, staffing information, personnel information,
employee lists, supplier lists, vendor lists, developments, reports, internal controls, security procedures, graphics, drawings,
sketches, market studies, sales information, revenue, costs, formulae, notes, communications, algorithms, product plans, designs,
styles, models, ideas, audiovisual programs, inventions, unpublished patent applications, original works of authorship, discoveries,
experimental processes, experimental results, specifications, customer information, customer lists, client information, client
lists, manufacturing information, factory lists, distributor lists, and buyer lists of the Employer Group or its businesses or
any existing or prospective customer, supplier, investor or other associated third party, or of any other person or entity that
has entrusted information to the Company in confidence.

 

(iii)        The
Employee understands that the above list is not exhaustive, and that Confidential Information also includes other information
that is marked or otherwise identified as confidential or proprietary, or that would otherwise appear to a reasonable person to
be confidential or proprietary in the context and circumstances in which the information is known or used.

 

(iv)        The
Employee understands and agrees that Confidential Information developed by him in the course of his employment by the Company
is subject to the terms and conditions of this Agreement as if the Company furnished the same Confidential Information to the
Employee in the first instance. Confidential Information shall not include information that is generally available to and known
by the public at the time of disclosure to the Employee, provided that such disclosure is through no direct or indirect fault
of the Employee or person(s) acting on the Employee’s behalf.

 

    	6

    	 

    

 

(v)         Disclosure
and Use Restrictions. The Employee agrees and covenants: (A) to treat all Confidential Information as strictly confidential;
(B) not to directly or indirectly disclose, publish, communicate or make available Confidential Information, or allow it to be
disclosed, published, communicated or made available, in whole or part, to any entity or person whatsoever; and (C) not to access
or use any Confidential Information, and not to copy any documents, records, files, media or other resources containing any Confidential
Information, or remove any such documents, records, files, media or other resources from the premises or control of the Employer
Group, except as required in the performance of any of the Employee’s
remaining authorized duties or with the prior consent of the company in each instance (and then, such disclosure shall be made
only within the limits and to the extent of such duties or consent). Nothing herein shall be construed to prevent disclosure of
Confidential Information as may be required by applicable law or regulation, or pursuant to the valid order of a court of competent
jurisdiction or an authorized government agency; provided that the disclosure does not exceed the extent of disclosure required
by such law, regulation or order. The Employee shall promptly provide written notice of any such required disclosure to the company.

 

(vi)        Duration
of Confidentiality Obligations. The Employee understands and acknowledges that his obligations under this Agreement with regard
to any particular Confidential Information shall commence immediately and shall continue during and after his employment by the
Company for ten (10) years from the Separation Date; provided, however, that the Employee’s obligations with respect to
any trade secrets shall continue beyond ten (10) years for so long as such information remains a trade secret under applicable
law.

 

(d)          Non-Competition.

 

(i)          Because
of the Employer Group’s legitimate business interest as described herein and the good and valuable consideration paid to
the Employee, the Employee agrees and covenants not to engage in any Prohibited Activity within the nutritional supplement industry
for twenty-four (24) months after the Separation Date unless approved by the company in writing.

 

(ii)         For
purposes of this Section 4(d), the term “Prohibited Activity” means any activity in which the Employee contributes
his knowledge, directly or indirectly, in whole or in part, as an employee, employer, owner, operator, manager, advisor, consultant,
agent, partner, director, stockholder, officer, volunteer, intern or any other similar capacity, to an entity engaged in the same
or similar business as the Employer Group, including those engaged in the business of developing, marketing, manufacturing, and
selling athlete-focused, high quality nutritional supplements primarily to specialty resellers.

 

(iii)        Nothing
herein shall prohibit the Employee from purchasing or owning less than five percent (5%) of the publicly traded securities of
any corporation, provided that such ownership represents a passive investment and that the Employee is not a controlling person
of, or a member of a group that controls, such corporation.

 

(e)          Non-Solicitation
of Employees. The Employee agrees and covenants not to directly or indirectly solicit, hire, recruit, attempt to hire or recruit,
or induce the termination of employment of any employee of the Employer Group for twenty-four (24) months after the Separation
Date.

 

    	7

    	 

    

 

(f)          Non-Solicitation
of Customers. The Employee agrees and covenants, for twenty-four (24) months after the Separation Date not to directly or
indirectly solicit, contact (including but not limited to e-mail, regular mail, express mail, telephone, fax, and instant message),
attempt to contact or meet with the Company’s current, former or prospective customers, for purposes of offering or accepting
goods or services similar to or competitive with those offered by the Company.

 

(g)          Non-Disparagement.

 

(i)          The
Employee agrees not to express any statements, written or verbal, or cause or encourage others to make any derogatory or damaging
statements, written or verbal, that in any way interfere with their existing or prospective business relationships, or defame
or disparage the personal or business reputation, practices or conduct of the Company, the Employer Group, the Released Parties,
the Affiliated Entities and any of their members, managers, directors, owners, employees, officers, family members, representatives
and attorneys. Furthermore, the Employee will not represent himself as being an employee, officer, attorney, agent or representative
of MusclePharm Corporation, its subsidiaries or product lines, for any purpose. The Employee understands and acknowledges that
this Section 4(g) is a material inducement to the making of this Agreement and that he violates the terms of this Section 4(g),
any unvested Restricted Stock Units and any unvested Restricted Stock shall be immediately forfeited and the Company and the Employer
Group will be entitled to pursue any other legal and equitable remedies, including without limitation, the right to recover damages
(including but not limited to any amounts paid and/or owing under this Agreement) and to seek injunctive relief.

 

(ii)         This
Section 4(g) does not, in any way, restrict or impede the Employee from complying with any applicable law or regulation or a valid
order of a court of competent jurisdiction or an authorized government agency, provided that such compliance does not exceed that
required by the law, regulation, or order. The Employee shall promptly provide written notice of any such order to the company.

 

6.          Knowing
and Voluntary Acknowledgement. The Employee specifically agrees and acknowledges that: (a) the Employee has read this Agreement
in its entirety and understands all of its terms; (b) the Employee has been advised of and has availed himself of his right to
consult with his attorney prior to executing this Agreement; (c) the Employee knowingly, freely and voluntarily assents to all
of its terms and conditions including, without limitation, the waiver, release and covenants contained herein; (d) the Employee
is executing this Agreement, including the waiver and release, in exchange for good and valuable consideration in addition to
anything of value to which he is otherwise entitled; (e) the Employee is not waiving or releasing rights or claims that may arise
after his execution of this Agreement; and that (f) the Release in this Agreement is being requested in connection with the cessation
of his employment with the Company.

 

    	8

    	 

    

 

7.          Restrictive
Covenant Remedies. In the event of a breach or threatened breach by the Employee of any of the provisions of this Agreement,
the Employee hereby consents and agrees that the Company shall be entitled to seek, in addition to other available remedies, a
temporary or permanent injunction or other equitable relief against such breach or threatened breach from any court of competent
jurisdiction, without the necessity of showing any actual damages or that money damages would not afford an adequate remedy, and
without the necessity of posting any bond or other security. The aforementioned equitable relief shall be in addition to, not
in lieu of, legal remedies, monetary damages or other available forms of relief. Furthermore, any breach of Sections 4(c), 4(d),
4(e), 4(f) or 4(g) by the Employee, shall result in the immediate forfeiture of the Employee’s right, title and interest
in and to all unvested Restricted Stock Units and all unvested shares of Restricted Stock.

 

8.          Non-Disparagement
of the Employee. The Company agrees that, for a period of twenty-four (24) months from the Separation Date, it shall direct
its executive officers and directors that, either on behalf of the Company or in their personal capacity, they will not make (a)
any public statement that disparages or demeans the services, ability, business ethics or conduct of the Employee; or (b) any
public comments or statements detrimental to the interests of the Employee other than in the course of lawful competition with
the Employee or as otherwise permitted by law. This Section 7 does not, in any way, restrict or impede the Company or its executive
officers and directors from complying with any applicable law or regulation or a valid order of a court of competent jurisdiction
or an authorized government agency; provided that such compliance does not exceed that required by the law, regulation, or order.

 

9.          Press
Release. The Company agrees that it will share an advance draft of any press release (or portion thereof) it intends to issue
regarding the Employee’s resignation from the Company. Notwithstanding the foregoing, the Company is under no obligation
to revise or modify any press release it intends to issue in that regard.

 

10.         Successors
and Assigns.

 

(a)          Assignment
by the Company. The Company may assign this Agreement to any subsidiary or corporate affiliate in the Employer Group or otherwise,
or to any successor or assign (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially
all of the business or assets of the Company. This Agreement shall inure to the benefit of the Employer Group and permitted successors
and assigns.

 

    	9

    	 

    

 

(b)          No
Assignment by the Employee. The Employee may not assign this Agreement or any part hereof. Any purported assignment by the
Employee shall be null and void from the initial date of purported assignment. Furthermore,
the rights and privileges conferred by the RSU Agreement may not be transferred, assigned, pledged or hypothecated in any way
(whether by operation of law or otherwise) and will not be subject to sale under execution, attachment or similar process. Upon
any attempt to transfer, assign, pledge, hypothecate or otherwise dispose of the restricted stock conferred in the RSU Agreement,
or of any right or privilege conferred by the RSU Agreement, or upon any attempted sale under any execution, attachment or similar
process, the unvested restricted stock conferred pursuant to the RSU Agreement and the rights and privileges conferred by the
RSU Agreement immediately will become null and void.

 

11.         Governing
Law; Jurisdiction; Venue; and Waiver of Jury Trial. This Agreement, for all purposes, shall be construed in accordance with
the laws of the State of Colorado without regard to conflicts-of-law principles. Any action or proceeding by either of the Parties
to enforce this Agreement shall be brought only in any state or federal court located in the city and county of Denver, Colorado.
The Parties hereby irrevocably submit to the exclusive jurisdiction of such courts and waive the defense of inconvenient forum
to the maintenance of any such action or proceeding in such venue. The
Parties irrevocably waive the right to trial by jury and agree not to ask for a jury in any such proceeding.

 

12.         Entire
Agreement. Unless specifically provided herein, this Agreement contains all the understandings and representations between
the Employee and the Employer Group pertaining to the subject matter hereof and supersedes all prior and contemporaneous understandings,
agreements, representations and warranties, both written and oral, with respect to such subject matter. The Parties mutually agree
that the Agreement can be specifically enforced in court and can be cited as evidence in legal proceedings alleging breach of
the Agreement. In the event of any inconsistency between the statements in the body of this Agreement and the Employment Agreement,
and the RSU Agreement, the statements in the body of this Agreement shall control.

 

13.         Modification
and Waiver. No provision of this Agreement may be amended or modified unless such amendment or modification is agreed to in
writing and signed by the Employee and by the Chief Executive Officer of the Company. No waiver by either of the Parties of any
breach by the other party hereto of any condition or provision of this Agreement to be performed by the other party hereto shall
be deemed a waiver of any similar or dissimilar provision or condition at the same or any prior or subsequent time, nor shall
the failure of or delay by either of the Parties in exercising any right, power or privilege hereunder operate as a waiver thereof
to preclude any other or further exercise thereof or the exercise of any other such right, power or privilege.

 

14.         Severability.
Should any provision of this Agreement be held by a court of competent jurisdiction to be enforceable only if modified, or if
any portion of this Agreement shall be held as unenforceable and thus stricken, such holding shall not affect the validity of
the remainder of this Agreement, the balance of which shall continue to be binding upon the Parties with any such modification
to become a part hereof and treated as though originally set forth in this Agreement.

 

    	10

    	 

    

 

The Parties further
agree that any such court is expressly authorized to modify any such unenforceable provision of this Agreement in lieu of severing
such unenforceable provision from this Agreement in its entirety, whether by rewriting the offending provision, deleting any or
all of the offending provision, adding additional language to this Agreement or by making such other modifications as it deems
warranted to carry out the intent and agreement of the Parties as embodied herein to the maximum extent permitted by law.

 

The Parties expressly
agree that this Agreement as so modified by the court shall be binding upon and enforceable against each of them. In any event,
should one or more of the provisions of this Agreement be held to be invalid, illegal or unenforceable in any respect, such invalidity,
illegality or unenforceability shall not affect any other provisions hereof, and if such provision or provisions are not modified
as provided above, this Agreement shall be construed as if such invalid, illegal or unenforceable provisions had not been set forth
herein.

 

15.         Captions.
Captions and headings of the sections and paragraphs of this Agreement are intended solely for convenience and no provision of
this Agreement is to be construed by reference to the caption or heading of any section or paragraph.

 

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

 

17.         Tolling.
Should the Employee violate any of the terms of the restrictive covenant obligations articulated herein, the obligation at issue
will run from the first date on which the Employee ceases to be in violation of such obligation.

 

18.         Attorneys’
Fees. Should the Employee breach any of the terms of the restrictive covenants obligations referenced herein, to the extent
authorized by state law, the Employee will be responsible for payment of all reasonable attorneys’ fees and costs that the
Company incurred in the course of enforcing the terms of the Agreement, including demonstrating the existence of a breach and
any other contract enforcement efforts.

 

19.         Section
409A. This Agreement is intended to comply with Section 409A (“Section 409A”) of the Internal Revenue Code
of 1986, as amended (the “Code”), or an exemption thereunder and shall be construed and administered in accordance
with Section 409A. Notwithstanding any other provision of this Agreement, payments provided under this Agreement may only be made
upon an event and in a manner that complies with Section 409A or an applicable exemption. Any payments under this Agreement that
may be excluded from Section 409A either as separation pay due to an involuntary separation from service or as a short-term deferral
shall be excluded from Section 409A to the maximum extent possible. For purposes of Section 409A, each installment payment provided
under this Agreement shall be treated as a separate payment. Any payments to be made under this Agreement upon a termination of
employment shall only be made upon a “separation from service” under Section 409A. Notwithstanding the foregoing,
the Company makes no representations that the payments and benefits provided under this Agreement comply with Section 409A and
in no event shall the Company be liable for all or any portion of any taxes, penalties, interest or other expenses that may be
incurred by the Employee on account of non-compliance with Section 409A.

 

    	11

    	 

    

 

20.         Notice.
The Employee agrees to notify any subsequent employer of the restrictive covenants section contained in this Agreement. In addition,
the Employee authorizes the Employer Group to provide a copy of the restrictive covenants section of this Agreement to third parties,
including but not limited to, the Employee’s subsequent, anticipated or possible future employer.

 

21.         Employment
Taxes. Any payments made pursuant to this Agreement will be reported on Form W-2, if so required, and shall be subject to
withholding of applicable income and employment taxes.

 

22.         Acknowledgment
of Full Understanding. THE EMPLOYEE ACKNOWLEDGES AND AGREES THAT HE HAS FULLY READ, UNDERSTANDS AND VOLUNTARILY ENTERS INTO
THIS AGREEMENT. THE EMPLOYEE ACKNOWLEDGES AND AGREES THAT HE HAS HAD AN OPPORTUNITY TO ASK QUESTIONS AND CONSULT WITH AN ATTORNEY
OF HIS CHOICE BEFORE SIGNING THIS AGREEMENT. THE EMPLOYEE FURTHER ACKNOWLEDGES THAT HIS SIGNATURE BELOW IS AN AGREEMENT TO RELEASE
THE COMPANY FROM ANY AND ALL CLAIMS.

 

[Signature Page Follows] 

 

    	12

    	 

    

 

IN WITNESS WHEREOF,
the Parties have executed this Agreement as of the Execution Date.

 

	 	MUSCLEPHARM CORPORATION 
	 	 
	 	By:	/s/Brad Pyatt
	 	 	
        Name: Brad J. Pyatt

        Title: Chief Executive Officer

 

	EMPLOYEE	 
	 	 
	/s/Gary Davis	 
	L. Gary Davis	 

 

SIGNATURE PAGE

TO THE

SEPARATION AND RELEASE OF CLAIMS AGREEMENT

  

    	 

    	 

    

 

EXHIBIT
A

 

April 8, 2014

 

Brad Pyatt

MusclePharm Corporation

4721 Ironton Street

Building A

Denver, Colorado 80239

 

Brad:

 

I would like to notify
you of my intent to retire effective December 31, 2014, I would like to provide plenty of notice to transition out of my positions
as an officer and employee of MusclePharm Corporation (the “Company”) and its subsidiaries. As of that date, I would
resign any positions in relation to any employee benefit plans sponsored or maintained by the foregoing entities.

 

I am willing to transition
out of the Chief Financial Officer position effective seven (7) days from the date hereof. Notwithstanding the foregoing, I hereby
agree to perform my obligations pursuant to that certain Separation and Release of Claims Agreement dated the date hereof.

 

I have enjoyed my time
here and there were no disagreements as to any matter relating to the Company’s operations, policies or practices or otherwise,
between the Company and me relative to this decision.

 

	 	Sincerely,
	 	 
	 	/s/Gary Davis	 
	 	L. Gary Davis

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