PHARMACEUTICAL FORMULATIONS INC
EX-10.1
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<TYPE>EX-10
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<FILENAME>pharm-ex101_102904.htm
<DESCRIPTION>EX-10.1
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<TITLE>Exhibit 10.1</TITLE>
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<P ALIGN=RIGHT>EXHIBIT 10.1</P>

<P ALIGN=CENTER><FONT SIZE=3><B>Teamsters Local 522</B><BR>
<I>affiliated with the</I><BR>
<B>INTERNATIONAL BROTHERHOOD OF TEAMSTERS, AFL-CIO<BR>
1308 PIERCE STREET<BR>
RAHWAY, NJ 07965<BR>
TEL: 732-388-6047&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FAX: 732-388-4192</B></FONT></P>

<P ALIGN=LEFT><FONT SIZE=3><B>Daniel J. Kane<BR>
Trustee</B></FONT></P>

<P ALIGN=LEFT><FONT SIZE=3>TERM OF AGREEMENT: 3 YEARS</FONT></P>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10% ALIGN=LEFT>WAGES:</TD>
<TD WIDTH=25% ALIGN=LEFT>to commence upon ratification</TD>
<TD WIDTH=65% ALIGN=LEFT>10/24/04 - fortyfive (.45) cents per hour<BR>
10/24/05 - fortyfive (.45) cents per hour<BR>
10/24/06 - fortyfive (.45) cents per hour</TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10% ALIGN=LEFT>MEDICAL -</TD>
<TD WIDTH=90% ALIGN=LEFT>PFI agrees to pay into The United Teamster fund,
commencing 12/01/04 the following</TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10% ALIGN=LEFT></TD>
<TD WIDTH=30% ALIGN=LEFT><BR>
<BR>
1ST YEAR<BR>
2ND YEAR<BR>
3RD YEAR</TD>
<TD WIDTH=30% ALIGN=LEFT>SINGLE<BR>
<BR>
325.00 PER MONTH<BR>
350.00 PER MONTH<BR>
375.00 PER MONTH</TD>
<TD WIDTH=30% ALIGN=LEFT>FAMILY<BR>
<BR>
525.00 PER MONTH<BR>
550.00 PER MONTH<BR>
575.00 PER MONTH</TD>
</TR>
</TABLE>
<BR>

<P ALIGN=LEFT><FONT SIZE=3>ATTENDANCE POLICY:</FONT></P>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=50% ALIGN=LEFT><U>Length of employment</U><BR>
Less than 60 days<BR>
60 days to 1 year<BR>
1 year but less than 3 years<BR>
3 years</TD>
<TD WIDTH=50% ALIGN=LEFT><U>Annual Sick Leave</U><BR>
0 days<BR>
1 paid day, 2 unpaid days<BR>
2 paid days, 1 unpaid day<BR>
3 paid days</TD>
</TR>
</TABLE>
<BR>

<P ALIGN=LEFT><FONT SIZE=3><B>Court appearances, emergency room visits, and
hospital stays will be excused under the attendance policy, with proper
documentation provided (official court document or invoice from hospital).</B>
</FONT></P>

<P ALIGN=LEFT><FONT SIZE=3>CLASSIFICATION AND TITLES: Job descriptions will be
developed to broadly define what type of work is performed in Level I, II and
III positions. Job descriptions will also be developed for any position that has
a pay differential in the contract, i.e. Working foreperson, machine operator
mechanic, electronic technician. To be implemented within a 6 month period.
</FONT></P>

<P ALIGN=LEFT><FONT SIZE=3>JOB PERFORMANCE: Bids will be awarded based on
seniority and experience. A pay grid will be posted where employees can see what
their rate of pay will be at Level I. II and III positions relative to their
date of hire. </FONT></P>

<P ALIGN=LEFT><FONT SIZE=3>BEREAVEMENT: Increase the current bereavement clause
to 5 days only in instance of death of spouse, mother, father or child.
</FONT></P>

<P ALIGN=LEFT><FONT SIZE=3>COMPANY SHUT DOWN: PFI agrees to put in the contract
the fact that during shutdown employees can use sick or vacation time or take
the time as unpaid. Any employees required to work during shutdown will work
first shift. </FONT></P>

<P ALIGN=LEFT><FONT SIZE=3>The above represents the memorandum of understanding
as agree to by the signers below: </FONT></P>

<PRE>

/s/ Joe Byers                      10/21/04                  /s/ Ward Barney            10/21/04
-----------------------            --------                  ---------------------      --------
Joe Byers                          date                      Ward Barney                date

/s/ Sharon Wojtkiewicz             10/21/04                  /s/ Scott Kahn             10/21/04
----------------------             --------                  ---------------------      --------
Sharon Wojtkiewicz                 date                      Scott Kahn                 date

/s/ Peggy Regina                   10/21/04                  /s/ Milagros Jimenez       10/21/04
-----------------------            --------                  ---------------------      --------
Peggy Regina                       date                      Milagros Jimenez           date

/s/ Orlando Chiapetta              10/21/04                  /s/ Gabe Guzman            10/21/04
----------------------             --------                  ---------------------      --------
Orlando Chiapetta                  date                      Gabe Guzman                date

/s/ Luis Diaz                      10/21/04                  /s/ Lamar Dodd             10/21/04
----------------------             --------                  ---------------------      --------
Luis Diaz                          date                      Lamar Dodd                   date

/s/ Jason Velez                    10/21/04
----------------------             --------
Jason Velez                        date
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