Document:

<PAGE>
                                                                    EXHIBIT 10.5

                                                               EXECUTION VERSION

                               FIRST AMENDMENT TO
                                    WARRANTS

      THIS FIRST AMENDMENT TO WARRANTS (this "AMENDMENT") is made and entered
into as of January 26, 2005, by and between NORTHWEST BIOTHERAPEUTICS, INC., a
Delaware corporation (the "COMPANY"), and TOUCAN CAPITAL FUND II, L.P. (the
"WARRANTHOLDER").

                                    RECITALS

      WHEREAS, in connection with the purchase of $1,300,000 in Series A
Cumulative Convertible Preferred Stock of the Company as of the date hereof, the
parties hereto wish to enter into this Amendment to clarify the exercise prices
of Northwest Biotherapeutics Warrant BW-4, Northwest Biotherapeutics Warrant
BW-5, Northwest Biotherapeutics Warrant BW-6 and Northwest Biotherapeutics
Warrant BW-7 (collectively, the "WARRANTS"), each of which are held by the
Warrantholder.

                                    AGREEMENT

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

1.    Section 1(d) of each of the Warrants is hereby amended and restated in its
      entirety to read "(d) "EXERCISE PRICE" shall mean $0.04 per share (subject
      to adjustment pursuant to Section 5)."

2.    All other terms and conditions of the Warrants shall be unaffected hereby
      and shall remain in full force and effect.

3.    This Amendment shall be governed by and construed under the internal
      substantive laws of the State of Delaware.

4.    This Amendment may be executed in one or more counterparts, including
      facsimile counterparts, each of which will be deemed an original but all
      of which together shall constitute one and the same agreement.

                            [SIGNATURE PAGE FOLLOWS]

<PAGE>

                                                               EXECUTION VERSION

      IN WITNESS WHEREOF, the parties hereto have executed this FIRST AMENDMENT
TO WARRANTS as of the date first above written.

                                            COMPANY:

                                            NORTHWEST BIOTHERAPEUTICS, INC.

                                            By:     /s/ Alton Boynton
                                                 --------------------
                                                 Alton L. Boynton
                                                 President

Agreed to and accepted as of the
date first written above:

TOUCAN CAPITAL FUND II, L.P.

By:   /s/ Linda Powers
    ------------------
Name: Linda F. Powers
Title: Managing Director(YORK INTERNATIONAL CORPORATION LOGO)

                                                       PERSONAL AND CONFIDENTIAL

                                                     INTER-OFFICE CORRESPONDENCE

TO:        Business Unit Executive

FROM:

DATE:

RE:        Senior Management Incentive Plan (SMIP)

I am pleased to inform you that you have been approved by the Board of Directors
to participate in the Senior Management Incentive Plan (SMIP) portion of the
Company's 2002 Incentive Compensation Plan for the 2005 fiscal year. Please
refer to the 2002 Incentive Compensation Plan for more details on the plan
description and policies.

For the 2005 fiscal year, your incentive compensation will be based on the
following performance goals:

      1.    York International Earnings per Share (EPS)

      2.    York International Cash Flow

      3.    Business Unit EBIT $

      4.    Business Unit EBIT %

      5.    Business Unit Net Capital Employed (NCE) % or Return on Net Capital
            Employed (RONCE) %

There are three levels of achievement for each goal. The achievement level will
be linearly pro-rated based on actual results.
<PAGE>
Goals and respective payout as a percentage of base salary is listed below ($ in
millions except EPS):

<TABLE>
<CAPTION>
                                                                      WEIGHTING
                                THRESHOLD     TARGET     MAXIMUM       FACTOR
                                ---------     ------     -------       ------
<S>                             <C>           <C>        <C>          <C>
EARNINGS PER SHARE (EPS) for        $           $           $
York International*

Percent of Base
Salary to be paid                   %           %           %              %

CASH FLOW for York                  $           $           $
International*

Percent of Base
Salary to be paid                   %           %           %              %

BUSINESS UNIT
EBIT $                              $           $           $

Percent of Base
Salary to be paid                   %           %           %              %

BUSINESS UNIT
EBIT %                              %           %           %

Percent of Base
Salary to be paid                   %           %           %              %

BUSINESS UNIT
RONCE% OR
NCE%*                               %           %           %

Percent of Base
Salary to be paid                   %           %           %              %
      Incentive Amount              %           %           %              %
</TABLE>

*ONLY PAYABLE IF 85% OF BUSINESS UNIT EBIT$ TARGET IS ACHIEVED

Distribution of the amount earned under the SMIP will be made after the results
for fiscal year 2005 have been audited. The actual timing, amounts and
individual distribution of those amounts are predicated upon actual performance,
and are ultimately approved by the Compensation Committee of the Board of
Directors. In the event of death, disability, retirement or termination, other
than for cause, payments will be prorated for the time of employment. If you
voluntarily leave the company or are terminated for cause prior to the end of
the year, any incentive payment will be forfeited.

Targets are confidential information and may not be communicated outside of the
Company, and should only be discussed internally on a need-to-know basis.(YORK INTERNATIONAL CORPORATION LOGO)

                                                       PERSONAL AND CONFIDENTIAL

                                                     INTER-OFFICE CORRESPONDENCE

TO:        Corporate Executive

FROM:

DATE:

RE:        Senior Management Incentive Plan (SMIP)

I am pleased to inform you that you have been approved by the Board of Directors
to participate in the Senior Management Incentive Plan (SMIP) portion of the
Company's Incentive Compensation Plan for fiscal year 2005. Please refer to the
Incentive Compensation Plan for more details on the plan description and
policies.

For the 2005 fiscal year, your incentive compensation will be based on the
following performance goals:

      1.    York International Earnings per Share (EPS)

      2.    York International Cash Flow

      3.    York International EBIT %

There are three levels of achievement for each goal. The achievement level will
be linearly pro-rated based on actual results.
<PAGE>
Goals and respective payout as a percentage of base salary is listed below ($ in
millions except EPS):

<TABLE>
<CAPTION>
                                                                      WEIGHTING
                                THRESHOLD     TARGET    MAXIMUM        FACTOR
                                ---------     ------    -------        ------
<S>                             <C>           <C>       <C>           <C>
EARNINGS PER SHARE
(EPS) for York International        $           $          $

Percent of Base
Salary to be paid                   %           %          %                %

CASH FLOW for York                  $           $          $
International

Percent of Base
Salary to be paid                   %           %          %                %

EBIT % for York
International                       %           %          %

Percent of Base
Salary to be paid                   %           %          %                %

Incentive Amount                    %           %          %
</TABLE>

Distribution of the amount earned under the SMIP will be made after the
Company's results for fiscal year 2005 have been audited. The actual timing,
amounts and individual distribution of those amounts are predicated upon actual
performance, and are ultimately approved by the Compensation Committee of the
Board of Directors. In the event of death, disability, retirement or
termination, other than for cause, payments will be prorated for the time of
employment. If you voluntarily leave the company or are terminated for cause
prior to the end of the year, any incentive payment will be forfeited.

Targets are confidential information and may not be communicated outside of the
Company, and should only be discussed internally on a need-to-know basis.<PAGE>

                                                                   EXHIBIT 10.25

Confidential            Execution Copy

                        FINISHED PRODUCT SUPPLY AGREEMENT

executed as of the date last below written (hereinafter referred to as
"Effective Date") by and between

         JANSSEN PHARMACEUTICA, Naamloze Vennootschap, a business corporation
         organised under the Laws of Belgium, having its principal office at
         B-2340 Beerse (Belgium), Turnhoutseweg 30 (hereinafter referred to as
         "JANSSEN")

and

         BARRIER Therapeutics, Inc., a business corporation organized and
         existing under the laws of the State of Delaware and having its
         principal office at 600 College Road East, Suite 3200, Princeton, New
         Jersey 08540 ("BARRIER").

ARTICLE 1: DEFINITIONS

Each term defined below shall, for the purpose of this Agreement, have the
following meaning unless the context clearly requires otherwise and the singular
shall include the plural and vice versa:

1.1      "Affiliate" shall mean, with respect to a given company, any company
         which owns or controls at least fifty per cent (50 %) of the voting
         stock of such given company, or any other company at least fifty per
         cent (50 %) of whose voting stock is owned or controlled by such owning
         or controlling company or by the given company.

1.2      "Compounds" shall mean those active ingredients as specified in a
         separate Exhibit attached hereto.

1.3      "Know-How" shall mean i) all registration and technical data concerning
         the Compound and the Product and ii) all other confidential information
         and knowledge which has been or shall be supplied by JANSSEN at its
         discretion to BARRIER during the term of this Agreement, but in each
         case, excluding any JJCC Know-How licensed to BARRIER under the License
         Agreement.

                                      -1-
<PAGE>
Confidential                            Page 2                        13/07/2004

1.4      "Finished Product" shall mean a Product wrapped, labelled and packaged
         in secondary printed packaging, for use in human medicine, and, subject
         to final release by BARRIER, ready for sale to the ultimate consumer,
         as specified in a separate Exhibit I attached hereto.

1.5      "License Agreement" shall the agreement dated May 6, 2002 between
         BARRIER and JANSSEN's Affiliate Johnson & Johnson Consumer Products.

1.6      "Manufacture" shall mean all steps and operations involved in the
         production of Finished Products starting from pharmaceutical
         formulation, packaging, labelling, in-process quality control, internal
         release testing, and storage of the Finished Products until delivery
         thereof to BARRIER or a party designated by BARRIER. For clarity,
         "Manufacture" does not include final release of Finished Products in
         accordance with the Regulatory File, which shall be the responsibility
         of BARRIER.

1.7      "Product" shall mean the pharmaceutical formulation known as F100
         containing miconazole nitrate and zinc oxide as active ingredients as
         further described in a separate Exhibit. For clarity, "Product" shall
         not include the pharmaceutical formulation known as F114.

1.8      "Regulatory File" shall mean a file holding the application for
         obtaining marketing approval for Product in a given country or region,
         ready for submission to the appropriate regulatory agency.

1.9      "Specifications" shall mean the specifications of Finished Product as
         set forth in Exhibit III hereto which may be modified from time to time
         in accordance with Article 7.2.

1.10     "Territory" shall mean the world with the exception of (i) the "JJCC
         Countries" as defined in the License Agreement and (ii) the United
         States and Canada.

ARTICLE 2: DUTY TO MANUFACTURE AND SUPPLY; RIGHT TO BUY AND USE THE FINISHED
PRODUCT

2.1      Subject to all terms and conditions of this Agreement, JANSSEN shall
         Manufacture and supply to BARRIER on a non-exclusive basis the Finished
         Product. Subsequently JANSSEN grants BARRIER the non-exclusive right to
         use, import, have imported, sell and have sold the Finished Product in
         the Territory and JANSSEN grants BARRIER thereby the non-exclusive
         right to use the Know-How.
<PAGE>
Confidential                            Page 3                        13/07/2004

         The right granted in this Article 2.1 shall in no way limit the rights
         granted to BARRIER under the License Agreement.

2.2      BARRIER shall sell the Finished Product for its own account and at its
         own risk. Without limiting the generality of the foregoing, BARRIER
         shall assume all credit risks.

2.3      All rights herein granted are personal to BARRIER. Such rights are
         indivisible and non-transferable and BARRIER has no right to grant any
         subcontract thereto, except as necessary for BARRIER to distribute and
         sell Finished Product through its distributors and similar business
         partners.

2.4      JANSSEN shall provide, at its own cost and expense, all equipment,
         machinery, raw materials, active ingredients and labor necessary for
         the Manufacture of the Finished Products.

ARTICLE 3: SUPPLY-PRICE-PAYMENT CONDITIONS

3.1.     BARRIER commits itself for the duration of this Agreement to buy its
         total requirements of the Finished Product for sale in Territory
         exclusively from JANSSEN or a party designated by JANSSEN, at the
         applicable prices.

3.2.     The Price ex-works for the Finished Product shall be: tube of 30 gram:
         E 1.00 (one Euro) per unit.

3.2.     JANSSEN shall invoice orders at prices in effect at the time of
         JANSSEN's receipt of such order. BARRIER shall pay JANSSEN in Beerse in
         Euros, within thirty (30) days from the date of the invoice. Invoices
         shall be dated the date of shipment.

         In the event that BARRIER does not abide by the payment terms agreed
         upon, JANSSEN shall have the right to withhold further supplies and to
         require all following payments against irrevocable and confirmed letter
         of credit.
<PAGE>
Confidential                            Page 4                        13/07/2004

ARTICLE 4: MINIMUM PURCHASE OBLIGATION - ORDERS

4.1.     Minimum Purchase Obligation.

         BARRIER commits to purchase a total of 1,000,000 (one million) 30 gram
         tubes within a period of 24 (twenty-four) months starting from the
         Effective Date.

         In case this Agreement is terminated for whatever reason except breach
         of contract by JANSSEN but including without limitation termination
         under Article 10.3 below, and BARRIER has not yet purchased and paid a
         minimum of 1,000,000 (one million) 30 gram tubes on the effective date
         of termination, BARRIER shall pay to JANSSEN a penalty equal to of 0.50
         Euro (one half Euro) multiplied by the number of 30 gram tubes that
         BARRIER has failed to buy and pay compared to the 1,000,000 (one
         million) 30 gram tubes minimum.

4.2.     Ordering.

         BARRIER will order the Finished Product from JANSSEN by means of a
         purchase order for the Firm Order and JANSSEN shall ship or cause the
         Finished Product to be shipped pursuant to its standard shipping
         documents; all such purchase orders shall be sent to the attention of
         European Demand Group of the European Logistics Center (ELC), or such
         other addressee as indicated by JANSSEN from time to time.

         Each such purchase order, whether printed, stamped, typed or written,
         shall be governed by the terms of this Agreement and none of the
         provisions of such purchase order shall be applicable, except those
         specifying quantity ordered and delivery dates. It is thereby
         understood that Firm Orders for the Finished Products shall be sent to
         JANSSEN at a minimum of twelve (12) weeks before the required shipping
         date.

4.3.     Orders in excess of the forecasted quantity are subject to JANSSEN's
         approval and JANSSEN will use its reasonable efforts to execute such
         orders, taking into account the quantities of the Finished Product
         available to JANSSEN at the time, the requirements of its other
         customers and its own requirements and the production capacity of its
         plant.
<PAGE>
Confidential                            Page 5                        13/07/2004

4.4.     The following minimum quantities of the Finished Product to be ordered
         with each order shall apply: 91,000 (ninety one thousand) 30 grams
         tubes or a multiple thereof.

4.5.     Orders for the Finished Product confirmed by JANSSEN under Article 4.4.
         here above shall be shipped EXW JANSSEN'S facility (2000 Incoterms) and
         the respective obligations of JANSSEN and BARRIER regarding the
         delivery aspects, including but not limited to import and export
         licenses and formalities, carriage and insurance aspects, transfer of
         risk, cost allocations etc. will be as laid down under the said
         Incoterms. The transportation and insurance costs actually incurred by
         JANSSEN or its designee shall be reimbursed by BARRIER.

ARTICLE 5: LABELLING, PACKAGING AND QUALITY ASSURANCE

5.1      At least sixty (60) days prior to first purchase order, BARRIER shall
         provide JANSSEN with the art work and copy of all packaging material,
         including package inserts labels and designs etc. On the packages,
         labels, insert leaflets and other written information concerning the
         Finished Product, no reference will be made to JANSSEN except if
         otherwise required by regulatory authorities, in which case BARRIER
         shall promptly inform JANSSEN in writing of such requirement. BARRIER
         shall be solely responsible for compliance of any and all packaging
         material, including package inserts labels and designs with applicable
         regulations and shall indemnify and hold harmless JANSSEN against any
         and all claims or damages caused by any alleged or actual
         non-compliance. In case BARRIER intends to alter all or part of the
         packaging material, including package inserts labels and designs, it
         shall inform JANSSEN of such intention sufficiently in advance and
         BARRIER shall bear any and all actual costs and expenses incurred by
         JANSSEN as a consequence of such change, including but not limited to
         the destruction of expired packaging material and/or inserts and/or
         labels.

5.2      The regulatory responsibilities of the Parties, including, without
         limitation, standard operating procedures applying to change control
         and responsibilities for quality assurance, shall be set forth in a
         specific quality agreement (the "Quality Agreement") that will be
         attached hereto as Exhibit. To the extent there are any conflicts or
         inconsistencies between this Agreement and the Quality Agreement, the
         terms and conditions of the Quality Agreement shall take precedence
         with respect to matters of a regulatory nature including, without
         limitation, standard operating procedures, change control, Adverse Drug
         Events, recalls and quality assurance, whereas the terms and conditions
         of this Agreement shall prevail with respect to all
<PAGE>
Confidential                            Page 6                        13/07/2004

         other matters, unless otherwise expressly set forth in this Agreement
         or agreed in writing by the Parties.

ARTICLE 6: WARRANTIES

6.1      JANSSEN warrants that the Finished Products are Manufactured in
         compliance with the prevailing GMP Rules, with the Quality Agreement
         and with the Specifications.

6.2      Janssen will release the Product to Barrier under the release testing
         procedures currently used by Janssen for its Daktozin(R) product (the
         "Janssen Release Procedures"). Upon Barrier's or its designee's receipt
         of the finished released Product, Barrier or its designee will conduct
         two release procedures in accordance with the Regulatory File (the
         "Barrier Release Specifications") in addition to the Janssen Release
         Procedures. The Barrier Release Specifications are set forth on Exhibit
         II to this letter. Within thirty (30) days following a receipt of a
         shipment of Finished Product, BARRIER inform JANSSEN in writing of any
         qualitative and quantitative shortcomings of the supplied Finished
         Product. If the shipping documents, batch records and certificate of
         analysis are delivered to BARRIER'S designee, JANSSEN shall also send a
         copy of such documents, batch records and certificate of analysis to
         Barrier. In the absence of written advice by BARRIER the Finished
         Product shall be deemed to be delivered in good and satisfactory
         condition, except with respect to hidden defects.

6.3      On the date of dispatch from Janssen shipping facility; the Finished
         Product shipped to BARRIER shall have a remaining shelf life equal to
         at least eighty percent (80%) of the normal shelf life as set forth in
         the Specifications.

6.4      The warranty obligation assumed by JANSSEN hereunder with respect to
         hidden defects to the Finished Product shall only apply if BARRIER has
         notified JANSSEN not later than fourteen (14) working days after the
         defects are discovered and at least ninety (90) days prior to the
         expiration of such Finished Product.

6.5      In case of a justifiable claim received by JANSSEN by registered mail
         within the applicable time periods as provided in Article 6.2 and 6.3
         above, JANSSEN shall either replace the defective portion of the
         Finished Product when returned, adjust the price for the sale in
         question, or correct the shortage fairly and promptly at no additional
         cost to BARRIER, but
<PAGE>
Confidential                            Page 7                        13/07/2004

         under no circumstances whatsoever shall all or any portion of the
         Finished Product in question be returned to JANSSEN without its prior
         consent.

6.6      BARRIER shall promote and sell the Finished Product in the Territory
         under a trademark and label (name, design, layout, colours, etc.) of
         BARRIER which does not look confusingly similar to any trade dress,
         trademark or design of JANSSEN. BARRIER shall be responsible for
         assuring the compliance of such label and all other written information
         with the local laws and regulations in the Territory.

6.7      BARRIER shall take care that to store the Finished Product in storage
         facilities adapted to pharmaceutical preparations and in compliance
         with the legal requirements in the Territory.

6.8      BARRIER shall release the Finished Product to the market in compliance
         with the release procedures set forth in the Regulatory File.

ARTICLE 7: LICENSES - CONTROL OF CHANGE

7.1      BARRIER shall exercise its best efforts to obtain and maintain at its
         own expense and as promptly as possible any government license,
         registration or approval to import the Finished Product, to label and
         package the Finished Product, to sell the Finished Product in the
         Territory and to perform in general this Agreement.

7.2      Parties understand that the Specifications with respect to the
         formulation of the Product are the same as the specifications of
         JANSSEN's Daktozin(R) product. JANSSEN shall be entitled to alter
         Specifications from time to time to align with alterations in the
         specifications of JANSSEN's Daktozin. In such event JANSSEN shall
         notify BARRIER of its intention in advance in order to reasonably
         enable BARRIER to obtain a corresponding variation of the marketing
         approval(s) for Finished Product, where necessary. In no event shall
         JANSSEN be under an obligation to continue to supply BARRIER with
         Finished Product with non-altered Specifications after a period of six
         (6) months has lapsed after the day on which JANSSEN sent the notice of
         its intention to alter Specifications. This Article 7.2. shall take
         precedence over anything said to the contrary in the Quality Agreement.
<PAGE>
Confidential                            Page 8                        13/07/2004

ARTICLE 8: ADVERSE DRUG EVENTS AND RECALLS

Adverse Drug Event reporting and recalls of Finished Product shall be dealt with
in accordance with the provisions of the Quality Agreement.

ARTICLE 9: TERM

9.1      Unless sooner terminated as hereinafter provided, this Agreement shall
         commence on the Effective Date and shall continue in full force and
         effectuntil the day on which BARRIER has bought and paid a total of
         1,000,000 (1 million) 30 gram tubes of Finished Product as set forth in
         Article 4.1. above.

9.2      Without prejudice to Article 4.1, termination of this Agreement
         pursuant to Article 11. shall not entitle a Party to claim or seek
         indemnification, or any other form of damage or otherwise, make any
         claim against the terminating Party by reason or at the occasion of
         such termination. Neither Party will in no way be entitled at any time
         to any sum or right whatsoever from the terminating Party other than
         those which might be payable to it if and when clearly and expressly
         provided for under the Agreement.

ARTICLE 10: TERMINATION

10.1     If BARRIER shall default at any time in making any payment required by
         this Agreement, or commit any material breach of any covenant or
         agreement herein , and shall fail to remedy such default, or remedy
         such breach within thirty (30) days after receipt of written notice
         thereof by JANSSEN, or if BARRIER becomes insolvent, JANSSEN may, at
         its option and by written notice, terminate this Agreement and the
         rights herein granted immediately without any further prior notice. If
         JANSSEN shall commit any material breach of any covenant or agreement
         herein and shall fail to remedy such breach within thirty (30) days
         after receipt of written notice thereof by BARRIER, BARRIER may, at is
         option and by written notice, terminate this Agreement and the rights
         herein granted immediately without any further prior notice.

10.2     This Agreement shall terminate automatically in the event that pursuant
         to Article 8.2, BARRIER does not wish to buy Finished Product with
         altered Specifications and the period of six months has lapsed.
<PAGE>
Confidential                            Page 9                        13/07/2004

10.3      JANSSEN shall be entitled, but not obligated, to terminate this
          Agreement at any time, by way of written notice if, after a period of
          twenty four (24) months starting from the Effective Date, BARRIER has
          not yet bought and paid a total of 1,000,000 (1 million) 30 gram tubes
          of Finished Product.

ARTICLE 11: EFFECTS OF TERMINATION

11.1     On the expiration of the present Agreement, or in case of termination
         for any reason, BARRIER shall, without prejudice to the provisions of
         Article 11.2. below

         (a)      immediately cease, upon termination and thereafter, the use of
                  any Know-How and shall not disclose the Know-How to others;

         (b)      immediately return to JANSSEN any original technical material
                  and Know-How of JANSSEN then in its possession ;

         (c)      immediately render adequate and final accounts to JANSSEN with
                  respect to any transaction under the present Agreement to
                  which it has not yet rendered an accounting to JANSSEN;

         (d)      promptly effect the payment of the penalty set forth in
                  Article 4.1, if applicable.

11.2     On the expiration or termination of this Agreement for any reason
         whatsoever, BARRIER shall continue to have the right to sell and have
         sold the remaining stock of Finished Product following said expiration
         or termination.

ARTICLE 12: CONFIDENTIALITY

12.1     BARRIER shall not disclose any Know-How received from JANSSEN to any
         third party without prior written consent of JANSSEN, except and to the
         extent as required by governmental authorities, or except that any of
         such Know-How can be shown by BARRIER:

         (i)      to be in its possession or in the possession of its employees
                  or an employee of any of its Affiliates prior to such
                  disclosure to BARRIER; or

         (ii)     is now or hereafter becomes available as public knowledge or
                  literature through no fault of BARRIER, patented or otherwise;
                  or
<PAGE>
Confidential                           Page 10                        13/07/2004

         (iii)    is received by BARRIER from an independent third party who did
                  not receive the information directly or indirectly from
                  JANSSEN.

12.2     The provisions of Article 12.1. shall also apply to Know-How disclosed
         by JANSSEN to BARRIER prior to the execution of this Agreement.

12.3     The obligation of secrecy contained in this Article 12, shall survive
         the expiration and/or termination of this Agreement for ten (10) years.

ARTICLE 13: LIABILITY

13.1     Without in any way limiting any liability of JANSSEN to BARRIER under
         this Agreement, as to third parties including governmental authorities,
         BARRIER shall be the responsible manufacturer and seller of the
         Finished Product in the Territory. BARRIER shall promptly notify
         JANSSEN of any claim or demand made by any third party due to the
         alleged defectiveness of the Compounds and/or Finished Product, and
         BARRIER shall consult in good faith with regard to the appropriate
         reaction to such claim or demand. In any event, BARRIER shall not admit
         to any degree of liability to any third parties either for himself or
         JANSSEN before having consulted JANSSEN and obtained the written
         consent of JANSSEN thereto. JANSSEN shall defend and hold BARRIER
         harmless from and against third party claims and will indemnify BARRIER
         for all direct damages costs and expenses related thereto, to the
         extent they arise out and are caused by the faulty conduct or
         negligence on behalf of JANSSEN in the manufacturing of the Finished
         Product, or in the supply of accompanying information.

13.2     BARRIER shall defend and hold JANSSEN harmless from and against third
         party claims and will indemnify JANSSEN for all direct damages costs
         and expenses related thereto, to the extent they arise out and are
         caused by the faulty conduct or negligence of BARRIER, such as but not
         limited to the mishandling or misstorage of the Finished Product, the
         labelling, to the extent such labeling has been supplied by or at the
         direction of BARRIER and sale of the Finished Product or due to any
         action or omission of BARRIER to comply with its obligations under this
         Agreement. BARRIER commits itself to have proper insurance protecting
         JANSSEN and itself against product liability claims.
<PAGE>
Confidential                           Page 11                        13/07/2004

13.3     In no event shall either Party be liable towards the other Party for
         any indemnification other than as respectively provided under Article
         14.2 and 14.3 or for any indirect, special or consequential damage
         whatsoever, including but not limited to financial loss or lost
         profits.

ARTICLE 14: INDEPENDENT PARTY

Neither party nor its employees or representatives are under any circumstances
to be considered as employees or agents or representatives of the other. Neither
parties employees or representative have authority or power to bind the other or
contract in other's name.

ARTICLE 15: NOTICES

Any notice required under this Agreement shall be made in writing either by
registered mail or facsimile or by overnight carrier to JANSSEN and to BARRIER
at their respective addresses first above written or as subsequently changed by
notice duly given. Notwithstanding the above all correspondence with regard to
the Termination of this Agreement shall be by registered airmail or overnight
carrier.

Notices by registered mail shall be deemed to be given three (3) days after
mailing. Notices by facsimile shall be deemed to be given on the date on which
such notice has been given. Notices by overnight carrier shall be deemed to be
given two (2) days after mailing.

ARTICLE 16: MISCELLANEOUS

16.1     This Agreement shall be binding upon and inure to the benefit of both
         parties and their respective its successors or permitted assigns.
         JANSSEN shall have the right to assign, transfer or sub-contract whole
         or part of this Agreement or any rights or obligations assumed
         thereunder to its Affiliates. BARRIER shall have the right, without the
         prior written consent of JANSSEN, to assign or transfer this Agreement
         to any person or entity that acquires all or substantialy all of the
         stock or assets of BARRIER. BARRIER shall promptly inform JANSSEN of
         the occurrence of such assignment or transfer.

16.2     No damages shall be owed by either Party to the other by reason of this
         Agreement or any part of it being held invalid or void at any future
         time. If any of the provisions of this Agreement are held to be or
         rendered void or unenforceable by or as a result of the decision of any
         Court
<PAGE>
Confidential                           Page 12                        13/07/2004

         or other Tribunal or by the legislation or regulation of any
         governmental or similar authorities, the Parties agree that the same
         shall not result in the nullity or unenforceability of the remaining
         provisions of this Agreement, but that they will use their best efforts
         to replace such void or unenforceable provision with a valid and
         enforceable provision which will achieve, to the extent possible, the
         economic, business or other purpose for said void or unenforceable
         provision.

16.3     Save as required by law no announcement or circular in connection with
         the subject matter of this Agreement shall be made by or on behalf of
         JANSSEN or BARRIER without the prior approval of the other Party, such
         approval not to be unreasonably withheld or delayed. It is agreed and
         understood that BARRIER may disclose the existence and terms of this
         Agreement in any document that it files with the Securities and
         Exchange Commission to the extent that BARRIER is adviced by legal
         counsel that such such existence and/or terms should be disclosed to
         comply with SEC rules and regulations.

16.4     Neither Party hereto shall be liable to the other Party for failure or
         delay in meeting any obligation hereunder due to circumstances beyond
         such Party's reasonable control, such as but not limited to strikes,
         lockouts, acts of God, riots, war, fire, flood, embargoes, failure of
         power, acts of government or of any agency, provided that the Party
         affected shall immediately inform the other Party about the cause of
         such delay. The Party so affected shall use its best efforts to
         eliminate, cure and overcome any such causes and resume performance of
         its covenants with all possible speed.

ARTICLE 17: APPLICABLE LAW

17.1     This Agreement shall, in all respects, be subject to substantive
         Belgian law except that the Parties explicitly waive the application of
         the law of July 27, 1961 (as amended). The U.N. Convention on Contracts
         for the international sale of goods shall not apply to this Agreement
         or to any sale of goods by JANSSEN or any of its designee(s) to BARRIER
         under this Agreement.

17.2     The Parties hereto expressly agree that any dispute arising out of or
         in connection with this Agreement shall be submitted to the exclusive
         jurisdiction of the Courts of Turnhout, Belgium.
<PAGE>
Confidential                           Page 13                        13/07/2004

ARTICLE 18: ENTIRE AGREEMENT

The present Agreement cancels and supersedes all agreements of any kind related
to the subject matter of this Agreement between JANSSEN and BARRIER prior to the
Effective Date of this Agreement, other than the License Agreement, which shall
continue in full force and effect and no terms of this Agreement shall amend or
alter the terms of the License Agreement.

ARTICLE 19: TRANSLATION

Any translation of this Agreement shall be submitted for BARRIER's information
only, and it is expressly understood that such a translation does not form part
of the Agreement and that only the English text shall be valid and legal.

IN WITNESS WHEREOF, JANSSEN and BARRIER have caused this instrument to be
executed in duplicate by their respective duly authorised officers.

ATTEST:                               BARRIER Therapeutics, Inc.

                                      This 14th day of July 2004

ALBERT C. BRISTOW                     By ALFRED ALTOMARI
-----------------                        ------------------------------
(title) General Counsel               (title) Chief Commercial Officer

ATTEST:                               JANSSEN PHARMACEUTICA N.V.
                                      This ____ day of July 2004

                                      By ANTONIO GUIGGI
------------------                    ----------------------------------
(title)                               (title) IVP Pharma Prod.

                                      By FRANCOIS SALLANS
                                          ------------------------------
                                      (title) General Manager

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