EMPLOYMENT AGREEMENT (this "Agreement"), dated as of December 18, 2002, by and between
Pharmaceutical Resources, Inc., a New Jersey corporation ("Resources"), and Dr. Arie Gutman ("Executive").
R E C I T A L S :
A. WHEREAS, Executive is presently employed by Resources in the capacities of President and Chief Executive
Officer of FineTech Laboratories, Ltd., a company organized under the laws of the State of Israel ("FineTech"
and, together with Resources, "Employer"), and currently serves as a member of the Board of Directors of
Resources (the "Board"); and
B. WHEREAS, Employer and Executive desire to enter into this Agreement in order for Executive to continue to
perform the duties associated with his positions with Employer on the terms and conditions set forth herein.
In consideration of the mutual promises herein contained, the parties hereto hereby agree as follows:
1.1. GENERAL. Resources hereby employs Executive in the capacities of President and Chief Executive Officer
of FineTech at the compensation rate and benefits set forth in Section 2 hereof for the Employment Term (as
defined in Section 3.1 hereof). Executive hereby accepts such employment, subject to the terms and conditions
herein contained. In all such capacities, Executive shall perform and carry out such duties and responsibilities as
may be assigned to him from time to time by the Board and by the Chief Executive Officer of Resources
reasonably consistent with Executive's positions and this Agreement, and shall report to the Board and the Chief
Executive Officer of Resources. Executive shall be headquartered in the Company's New York office and
FineTech's Haifa, Israel office and make himself available to the Company at such times and places as the
Company shall reasonably request during the Employment Term.
1.2. TIME DEVOTED TO POSITION. Executive, during the Employment Term, shall devote substantially all of
his business time, attention and skills to the busi