Document:

-- Converted by SEC Publisher, created by BCL Technologies Inc., for SEC Filing

July 1, 2009 

Personal and Confidential 

Mr. Carter J. Ward 

58 Spring Valley Ave 

Hackensack, NJ 07601 

Dear Carter, 

This letter agreement (the “Agreement”) shall confirm our understanding as to the terms of your employment with Elite Pharmaceuticals, Inc., a Delaware corporation (the “Company”). 

	 	1.  	Commencing
        on July 1, 2009, you shall become an employee of the Company as its Chief
        Financial Officer (the “CFO”) and your job responsibilities
    shall include, but shall not be limited to, the following: 
	 	 	 
	 	 	 	a.  	Leadership
        of all finance, accounting and financial reporting functions, including
    all Company reporting required by the U.S. Securities and Exchange Commission.
	 	 	 	 	 
	 	 	 	b.  	Presentation
        and communication of financial status, forecasts and business plans to
        the Board, Financial Institutions, Investors and other entities, as required
    to further the financial and commercial objectives of the Company.
	 	 	 	 	 
	 	 	 	c.  	Any
        other responsibilities that would be reasonably expected of the position
        of CFO of the Company and such other responsibilities as may be assigned
        to you from time to time by the Company’s Chief Executive Officer
        (the “CEO”) and the Board of Directors of the Company, including
    work at alternative sites or facilities.   
	 	 	 	 	 
	 	2.  	You
    will report directly to the CEO. 
	 	 	 
	 	3.  	You
        agree to dedicate at least 2 business days per week towards fulfilling
        your responsibilities as CFO of the Company shall receive an annual base
        salary equal to
$60,000.00, payable in accordance with the Company’s payroll
	 	 	 
	 	 	 

 

	 	 	practices. In recognition of your part-time
        commitment to the Company hereunder, the Company acknowledges and does
        not object to your dedicating the remaining 3 days per week to the performance
        of your services to Epic Pharma, LLC (“Epic”) and its affiliates.
        Regardless of any other activities and responsibilities, you agree to
        not knowingly undertake or engage in any employment, occupation or business
        enterprise that is directly or indirectly adverse to the interest of
    the Company.
	 	 	 
	 	4.  	You
        may become eligible for cash and/or equity-based awards that may be granted
        by the Company in the future, with any such awards to be granted in the
    discretion of the Company and the CEO.
	 	 	 
	 	5.  	You
        shall receive 4 days paid vacation time during each calendar year based
        on the current commitment of two days per week, and pro rated for periods
        of less than a full calendar year; provided,
        that the timing and duration of any particular vacation shall not interfere
        with the business of the Company or the effective performance of your
    duties hereunder, as reasonably determined in good faith by the CEO.
	 	 	 
	 	6.  	Commencing
        at three months from the starting day of your job at Elite, you shall
        be entitled to participate in all health insurance plans maintained by
        the Company for its employees, subject to applicable eligibility requirements;
        provided, however, that you understand that your part-time status may
        restrict your ability to participate in such plans. Nothing in the foregoing
        shall limit or restrict the Company’s discretion to amend, revise
    or terminate any benefit or plan without your notice or consent.
	 	 	 
	 	7.  	While
        you are employed by the Company, and except as provided in paragraph
        3 of this Agreement, you agree to devote your best efforts to the interests
        of the Company and to not knowingly undertake or engage in any employment,
        occupation or business enterprise that is directly or indirectly adverse
        to the interest of the Company. You agree to observe in all material
        respects any and all rules and policies that the Company may now or hereafter
        establish from time to time, governing the conduct of its employees or
    business. 
	 	 	 
	 	8.  	You
        understand and agree that your employment with the Company is terminable
        at the will of either the Company or you. You may terminate your employment
        at any time with or without notice and the Company has a similar right
        to terminate your employment for any reason or no reason. You acknowledge
        that there have been no representations or promises made to you that
        your employment will continue for a set period of time or that your employment
        will be terminated only under particular circumstances. You acknowledge
        that no representations, express or implied, may be made that are inconsistent
        with this policy and no one at the Company is authorized to make representations,
    express or implied, inconsistent with this policy.

 

 

	 	9.  	As
        a condition to entering into this Agreement and being employed by the
        Company you agree to execute and deliver the Proprietary Rights Agreement
        in the form attached hereto as Exhibit A (the “Proprietary
        Rights Agreement”), pursuant to which you shall agree that, among
        other things, (a) all Proprietary Information (as defined in the Proprietary
        Rights Agreement) disclosed to you by the Company during your employment
        with the Company is the exclusive property of the Company or the party
        that disclosed or delivered such information to the Company, and (b)
        except as otherwise permitted under the Proprietary Rights Agreement,
        you shall be prohibited from using or disclosing any such Proprietary
    Information.
	 	 	 
	 	10.  	This
        Agreement and the Proprietary Rights Agreement contain the entire understanding
        between the Company and you with respect to the subject matter hereof
        and thereof. This Agreement may not be extended, varied, modified, supplemented,
        or otherwise changed except by written agreement signed by both you and
        an authorized officer of the Company. A waiver by the Company of any
        right or provision under this Agreement shall not operate or be construed
        as a waiver of such right or provision at any other time. If a court
        of competent jurisdiction finds a portion of this Agreement unenforceable,
        such finding shall not affect enforcement of the other portions of this
        Agreement. Any portion found to be unenforceable shall be construed to
        be reformed to extend as far as is enforceable. This Agreement shall
        inure to the benefit of, and may be enforced by the successor and assigns
        of, the Company. This Agreement is entered into under the laws of the
        State of New York and shall be governed by the laws of the State of New
        York. Any lawsuit or legal action or proceeding relating to this Agreement
        shall be brought in one of the state of federal courts sitting in the
        City and State of New York, and both you and the Company submit to the
    jurisdiction of such courts for that purpose. 
	 	 	 
	 	11.  	You
        represent and warrant that you have had a full opportunity to seek legal
        advice and representation by an independent counsel of your own choosing
    in connection with this Agreement.

 

 

 

If you find the foregoing arrangement acceptable and believe that the foregoing accurately summarizes our understanding, please kindly so indicate by executing and dating the attached copy of this Agreement in the space provided
and returning a copy to me. 

	 	
      Very truly yours,	
	 	 	 	
	 	
      Elite Pharmaceuticals, Inc.	
	 	 	 	
	 	By:	/s/ Chris Dick	
	 	 	Name: Mr. Chris Dick	
	 	 	Title: Chief Operating Officer,	
	 	 	President and Acting Chief Executive	
	 	 	Officer	

 

ACCEPTED & AGREED AS OF  

	/s/ Carter J. Ward 
	Carter J. Ward 
	 	 

 

Exhibit A 

Proprietary Rights Agreement 

(see attached)

 

ELITE LABORATORIES, INC. 

EMPLOYEE PROPRIETARY INFORMATION 

AND NON-SOLICITATION AGREEMENT  

(THIS “AGREEMENT”) 

____________________________________________

In connection with your employment by Elite Pharmaceuticals, Inc., a Delaware corporation (the “Company”), you and the Company agree as follows: 

1. Your Conduct as an Employee. Except as otherwise provided in that certain letter agreement, dates as of July 1, 2009 (the “At-Will Employment
Agreement”), between you and the Company, to which this Agreement is attached as Exhibit A, while you are employed by the Company, you agree to devote your best efforts to the interests
of the Company and to not knowingly undertake or engage in any employment, occupation or business enterprise that is directly or indirectly adverse to the interest of the Company. You agree to observe in all material respects any and all rules and
policies that the Company may now or hereafter establish from time to time, governing the conduct of its employees or business. 

2.  Ownership and Nondisclosure of Proprietary Information.  You acknowledge that all Proprietary Information, as defined in Section 3 of this Agreement, is
the exclusive property of the Company or the party that disclosed or delivered such information to the Company. You shall not use or disclose any Proprietary Information, directly or indirectly, except as authorized by the Company in writing, or
only as needed in connection with your assigned duties, and you will promptly notify the Company of any unauthorized release of Proprietary Information. Specifically, you agree that all Proprietary Information or inventions developed as a direct or
indirect result of your efforts on behalf of the Company during any period of your employment with the Company shall be and shall
remain the exclusive property of the Company, and that you shall have no ownership interest therein. To the extent you may have any interest in such developed Proprietary Information, you agree to assign, and hereby do assign and transfer, any such rights, title and
interest to the Company. You agree to cooperate fully with the Company in taking such actions as may be necessary to allow Company to secure patent, copyright or other protections for any such inventions. 

3. Definitions. “Proprietary Information”, as referred to in this Agreement, includes all of the following information and material, whether or not reduced to writing and whether
or not patentable, that you, during any period of employment with the Company, have access to or develop in whole or in part as a direct or indirect result of either your efforts on behalf of the Company or through the use of any of the
Company’s facilities or resources:  (i) computer software, including without limitation all source and object code, flow charts, algorithms, coding sheets, routines, sub-routines, compilers, assemblers, design concepts and related documentation
and manuals; (ii) production processes, collection and receivable management processes, procedures and techniques, marketing techniques, licensing or sales policies, financial information, employee names and job descriptions, customer and
prospective customer names and requirements, data and other information or material relating to the manner in which the customer, prospective customer or the Company do business; (iii) discoveries, concepts and ideas (including but not limited to
the nature and results of research and development activities), processes, formulae, techniques, “know-how”, designs, drawings and specifications; (iv) any other information or material relating to the business or activities of the Company
which is not generally known to others engaged in similar businesses or activities; (v) all inventions and ideas which are derived from or relate to your access to or knowledge of any of the information or material described herein; and (vi) any of
the 

6

information or material described herein which is the property of any other person or firm which has revealed or delivered such information or material to the Company pursuant to a contractual relationship with the Company or
otherwise in the course of the Company’s business. Proprietary Information shall not include any information or material of the type described herein to the extent that such information or material (i) is or becomes publicly known through no
act on your part in violation of this Agreement, (ii) is required to be used or disclosed by applicable law or governmental order or process, or (iii) is known to or developed by you prior to your employment by the Company. The failure to mark any
of the Proprietary Information as confidential shall not affect its status as Proprietary Information. 

4.  Records.  All notes, data, reference material, sketches, drawings, memoranda and records in any way relating to any of the Proprietary Information or to
the Company’s business shall belong exclusively to the Company.  Except as required by your job responsibilities, you shall not remove from the Company’s property any such materials or copies thereof.  You shall not, either during the
period of your employment or thereafter, publish or cause to be published, release or cause to be released, or otherwise make available to any third party any such materials or copies thereof, to the extent not then publicly available unless
required by applicable law or governmental process or order.  At the request of the Company or, absent such a request, upon the termination of your employment with the Company, you agree to turn over to the Company all such materials and copies
thereof in your possession. 

5. Prior Employer. You agree that you will not, during your employment with the Company, improperly use or disclose any confidential, proprietary or trade secret information of or belonging
to Epic Pharma, LLC (“Epic”) or any of its affiliates or any former employer or other person or entity, and that you will not bring onto the premises of the Company or use in any way on behalf of the Company, any unpublished document or confidential or proprietary information belonging to
Epic or any of its affiliates or any such employer, person or entity unless consented to in writing by Epic or its affiliates, as the case may be, or such employer, person or entity. You also agree that you will not disclose or use in the
performance of your work with the Company any trade secrets or confidential or proprietary information of Epic or a former employer or any third party. You further represent to the Company that your employment with the Company will not conflict with
or be constrained by any prior employment obligations. 

6. No Recruitment. For a period of one year after the termination of your employment with Company, for any reason whatsoever, you will not solicit, on your own behalf or on behalf of others,
or hire directly or indirectly any employee of Company, nor will you attempt to persuade directly or indirectly any employee to leave the employ of Company. 

7. Injunctive Relief. Because of the valuable and unique nature of the Proprietary Information and Company’s relationships with its customers, prospective customers and employees, you
understand and agree that the Company shall suffer irreparable harm if you breach any of your obligations under this Agreement and that monetary damages shall be inadequate to compensate the Company for any breach hereof.  Accordingly, you agree
that, in addition to any other remedies or rights, the Company shall have the right to obtain an injunction to enforce the terms of this Agreement. 

10. Employment at Will. You understand and agree that your employment with the Company is terminable at the will of either the Company or you.  You may terminate your employment at any time
with or without 

7

notice and the Company has a similar right. You acknowledge that there have been no representations or promises made to you that your employment will continue for a set period of time or that your employment will be terminated
only under particular circumstances.  You acknowledge that no representations, express or implied, may be made that are inconsistent with this policy and no one at the Company is authorized to make representations, express or implied, inconsistent
with this policy. 

11.  General.  This Agreement and the At-Will Employment Agreement contain the entire understanding between the Company and you with respect to the subject
matter hereof and thereof. This Agreement may not be extended, varied, modified, supplemented, or otherwise changed except by written agreement signed by both you and an authorized officer of the Company. Headings are inserted for reference only and
shall not in any way define or affect the meaning, construction or scope of any of the provisions of this Agreement. A waiver by the Company of any right or provision under this Agreement shall not operate or be construed as a waiver of such right or provision at any other time. If a court finds a portion of this Agreement unenforceable, such finding shall not affect enforcement of the other portions of this Agreement.  Any portion found to be unenforceable
shall be construed to be reformed to extend as far as is enforceable. This Agreement shall inure to the benefit of, and may be enforced by the successor and assigns of, the Company. This Agreement is entered into under the laws of the State of New
York and shall be governed by the laws of such state. Any lawsuit or legal action or proceeding relating to this Agreement shall be brought in one of the state of federal courts sitting in the City and State of New York, and both you and the Company
submit to the jurisdiction of such courts for that purpose. 

12.  Advice of Counsel.  You represent and warrant that you have had a full opportunity to seek legal advice and representation by an independent counsel of your own choosing in connection
with this Agreement. 

 

 

I HAVE READ, UNDERSTAND AND AGREE TO ALL OF THE ABOVE: 

Date:_____________________________________

Signature:__________________________________

Name Printed:_______________________________

ELITE PHARMACEUTICALS, INC. 

By: _________________________________

        Name: Chris C. Dick 

        Titled:  Chief Operating Officer, 

        President and Acting Chief Executive Officer 

8EX-10.1

EXHIBIT 10.1

CONSULTING AGREEMENT

     THE J. M. SMUCKER COMPANY, an Ohio corporation with its principal place of business at
Strawberry Lane, Orrville, Ohio 44667 (“JMS”), and Donald D. Hurrle, Sr., 8255 Wilhite Dr.,
Wadsworth Ohio 44281, (“Consultant”), hereby agree as follows:

     1. Recitals. Consultant has substantial experience and knowledge relating to JMS’s
business, and specifically, its sales function. Due to the Consultant’s experience, JMS desires to
engage him on a consulting basis to provide advice in this area. Consultant is agreeable to
providing those services, and it is the purpose of this Agreement to set forth the terms and
conditions upon which those services will be rendered.

     2. Retention and Description of Services. JMS retains Consultant to furnish JMS with
Consultant’s unique expertise, advice, consulting and personal services in connection with special
projects relating to the Consultant’s area of expertise consistent with the terms of this Agreement
(“Consulting Services”). The Consultant will provide Consulting Services to JMS on an as-needed
basis during the Term. The actual Consulting Services to be provided by Consultant will be as
designated by: (i) the Chairman of the Board or President of JMS or (ii) any other person
designated by the Board of Directors. Consultant shall perform all Consulting Services on behalf
of JMS in a timely, diligent and professional manner in accordance with the highest commercial
industry standards.

     3. Term of Agreement. This Agreement commences as of July 7, 2009 and will terminate
on July 6, 2010 (the “Term”).

     4. Place of Performance. It is understood and agreed by JMS and Consultant that the
nature of the services to be rendered under this Agreement by Consultant may necessitate a
reasonable amount of travel by him and attendance by him at meetings with JMS personnel and others
that may be located at various locations in the United States.

     5. Compensation. Within 10 days of executing of this Agreement, JMS will pay
Consultant a lump sum fee of One Hundred Thousand and no/100 Dollars ($100,000) for his services
under this Agreement.

     6. Reimbursement of Expenses. JMS will reimburse Consultant for all reasonable and
necessary out-of-pocket expenses incurred by Consultant in connection with the rendition of
services under this Agreement with regard to specific, preapproved activities, including, but not
limited to, expenses of travel (other than the cost of travel between Consultant’s home and office,
if any). Reimbursement of expenses hereunder shall be on a basis consistent with JMS’s standard
corporate expense and travel policies, including, but not limited to, the required use of JMS’s
designated travel agency for all travel. Consultant understands that expenses to be reimbursed by
JMS under this Agreement will not include costs and expenses that would be considered normally
incident to the conduct by Consultant of his business. Any and all reimbursement of expenses
hereunder will be made solely on the basis of itemized statements
submitted by Consultant to JMS’s Corporate Controller, including actual bills, receipts, or other
evidence of expenditures, in accordance with JMS’s corporate policies.

     7. Consultant an Independent Contractor. Consultant will furnish services hereunder
as an independent contractor and not as an employee or agent of JMS or of any company affiliated
with JMS. Consultant shall have no power or authority to act on behalf of, represent, or bind JMS
or any company affiliated with JMS in any manner. Consultant is not entitled to any medical
coverage, life insurance, participation in any benefit plan, or any other benefits generally
accorded to employees of JMS or its affiliates.

     8. No Conflicting Activities. Consultant covenants that during the term of this
Agreement, he will not, either directly or indirectly, himself or through any affiliate, carry on,
or be engaged in, concerned with, or interested in, in any manner whatsoever, the development or
marketing of fruit spreads, coffee, peanut butter, baking mixes, toppings, beverages, or other
products produced or distributed by JMS anywhere in the United States or Canada (except for an
equity share investment in a public company whose shares are listed on a stock exchange or in an
over-the-counter market where such share investment does not in the aggregate exceed five percent
of the issued equity shares of such company), or represent, manufacture for, or distribute such
products for any person who does so manufacture or market. Consultant agrees that any breach of
this covenant will result in JMS’s suffering a loss which cannot adequately be compensated for in
damages and that JMS will be entitled to injunctive or other equitable relief.

     9. Confidentiality and Nondisclosure. Consultant hereby specifically agrees to be
bound by the nondisclosure provisions set forth in EXHIBIT “A” attached hereto and
incorporated herein by reference.

     10. Restrictions on Use of Inside Information. In the course of the performance of
his duties under this Agreement, it is expected that Consultant may receive information that is
considered material inside information within the meaning and intent of the securities laws of the
United States. Consultant will not disclose this information to others except as authorized by JMS
and will not use such information directly or indirectly for his own benefit or as a basis for
advice to any other party concerning any decision to buy, sell, or otherwise deal in the stock of
JMS.

     11. Survival of Obligations. The obligations of Consultant under paragraphs 9 and 10
above shall survive termination of this Agreement.

     12. Default; Termination. If either party fails to fulfill any of its obligations
under this Agreement, that shall constitute default. In the event of a default by any party that
is not cured within 30 days of notice thereof to the defaulting party, the party not in default may
terminate this Agreement effective immediately upon notice to the defaulting party.

     13. Notices. Notices under this Agreement shall be given by certified or registered
mail, postage prepaid, return receipt requested, or by hand delivery, addressed in either case to
the address for the party set forth above or to such other address as may be provided for in a
notice given as provided in this paragraph 13. Notices under this paragraph 13 shall be deemed
given upon receipt.

 

 

     14. Entire Agreement. This Agreement, together with EXHIBIT “A” attached,
constitutes the entire agreement and understanding between the parties and supersedes all prior
agreements and understandings between them with respect to its subject matter. It may not be
modified or assigned without the express permission of both parties in a writing referring to this
Agreement.

     15. Severability. The invalidity or unenforceability of any portion of this Agreement
shall not affect the validity, force, or effect of the remaining portions hereof. If it is ever
held that any restriction hereunder is too broad to permit enforcement of such restriction to its
fullest extent, each party agrees that a court of competent jurisdiction may enforce such
restriction to the maximum extent permitted by law, and each party hereby consents and agrees that
such scope may be judicially modified accordingly in any proceeding brought to enforce such
restriction.

     16. Governing Law. This Agreement shall be governed by and interpreted in accordance
with the laws of the State of Ohio, without reference to choice of law principles.

Dated: July 7, 2009

	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	THE J. M. SMUCKER COMPANY	 	CONSULTANT	 	 
	 
	 	 	 	 	 	 
	By

	 	/s/ Timothy P. Smucker
	 	/s/ Donald D. Hurrle, Sr.	 	 
	 

	 	 
	 	 	 	 
	 

	 	Timothy P. Smucker
	 	Donald D. Hurrle, Sr.	 	 
	 

	 	Chairman of the Board	 	 	 	 
	 

	 	and Co-Chief Executive Officer	 	 	 	 

 

 

EXHIBIT “A”

NONDISCLOSURE PROVISIONS

     1. Nondisclosure Obligation. Consultant shall hold in confidence and not disclose to
third parties, or make commercial or other use of, any trade secrets or other information that he
may have received during his employment with JMS and/or its subsidiaries or that he may receive or
acquire from JMS during the term of the Consulting Agreement concerning JMS’s products, equipment,
processes, designs, packaging, methods of distribution, capabilities, systems, technology,
specifications, data, operating instructions, customers, marketing and sales, business plans, or
any other private matters, whether or not related to the project in which it is involved (all such
information shall be referred to below as the “Confidential Information” without JMS’s prior
written permission.

     2. Ownership of Materials. Any and all tangible representations of the Confidential
Information, including but not limited to any and all lists, notes, memoranda, schedules, data
sheets, written formulae, drawings, diagrams, blueprints, still or moving photographic or video
pictures, models, machinery, equipment, and packaging, provided to or obtained by Consultant
directly or indirectly by or from JMS, or developed by the Consultant during the term of the
Consulting Agreement, and all copies thereof are and shall be the exclusive property of JMS and
must be returned to JMS upon the first to occur of a specific request therefor by JMS or the
termination of the Consulting Agreement.

     3. Limits on Nondisclosure Agreement. Nothing herein contained shall deprive
Consultant of the right:

     A. to use any information which is now generally known to the trade or the public or
to use any other information from and after the time it becomes so known as long as it
becomes so known through no fault of Consultant; and

     B. to use any information received by Consultant lawfully and in good faith from a
third party who is under no obligation with regard thereto to JMS, either directly or
indirectly.

     4. No Other Rights. The Confidential Information shall remain the exclusive property
of JMS, and no license of or other right to utilize the Confidential Information or any patent,
trademark, invention, copyright or other intellectual property of JMS, either express or implied,
is conveyed or shall be deemed to have been conveyed hereby. Insofar as Consultant’s participation
in projects under the Consulting Agreement results in improvements or modifications to JMS’s
processes or products, such improvements or modifications shall be the property solely of JMS.
Consultant hereby waives any and all claims to and transfers, assigns, and conveys any and all
right, title, and interest in and to any Confidential Information. Without limiting the foregoing,
Consultant transfers, assigns, and conveys to JMS any and all patent rights, including patent
applications, which may result from projects on which it is involved under the Consulting
Agreement. Consultant will cooperate with JMS as it may require to assist it in obtaining,
defending, or enforcing any patent rights relating to or resulting from such projects worldwide and
will execute any papers necessary to effect such patent rights.

     5. Damages. Consultant recognizes the competitive value and confidential nature of
the Confidential Information and that any breach or threatened breach of these nondisclosure
provisions by Consultant may cause JMS irreparable injury for which monetary damages may be an
inadequate remedy. Therefore, Consultant agrees that, in addition to any monetary damages to which
it may be entitled, JMS shall be entitled to temporary and permanent injunctions restraining such
breach or threatened breach.

     6. Survival of Provisions. These nondisclosure provisions generally will expire two
years after the expiration of the Consulting Agreement; provided, however, that Consultant’s
obligations hereunder will continue in effect with respect to individual items of Confidential
Information for as long as those items remain confidential.

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