Document:

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                                                                   EXHIBIT 10.13

                                  Certified translation from the German 1anguage

                              COOPERATION AGREEMENT

                   Agreement regarding the cooperation between

        APL AMERICAN PHARMED LABS, INC., 21 HENDERSON DRIVE, PO BOX 1327,
                   WEST CALDWELL, NEW JERSEY 07007-1327, USA,

       - hereinafter, also in case of several investors: the "INVESTOR" -

                                       and

                    TECHNOLOGIE-BETEILIGUNGS-GESELLSCHAFT MBH
        DER DEUTSCHEN AUSGLEICHSBANK, LUDWIG-ERHARD-PLATZ 1-3, 53179 BONN

                             - hereinafter: "TBG" -

       in the management of the investments specified in this Agreement in

                PHARMED LABS GMBH, TOLZER STR. 12, 82031 GRUNWALD

                    - hereinafter: the "TECHNOLOGY COMPANY" -

                                    PREAMBLE

Within the scope of the program "Investment Capital for Small Technology
Enterprises" implemented together with the German Ministry for Education,
Science, Research and Technology (BMBF) and Deutsche Ausgleichsbank, tbg
supports technology enterprises of the industry and trade sector, provided that
these enterprises are not older than 10 years and meet the EU qualification
requirements for small and medium-sized enterprises (SMEs) located within the
new German federal states and (East) Berlin and/or for small enterprises located
within the rest of the Federal Republic of Germany, i.e.:

-     employ a maximum staff of 250 (50)

and either

-     generate an annual turnover not exceeding DM 40 million (DM 10 million)

or

-     realize a balance sheet total not exceeding DM 20 million (DM 4 million)

and

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-     are held at a maximum share of 25% by one or several enterprises not
      fulfilling these requirements (exception: public holding companies,
      venture capital companies and - to the extent control is not exercised -
      institutional investors).

All of these three preconditions have to be fulfilled simultaneously, i.e. an
enterprise is only considered to be an SME if it enjoys the independence
required, complies with the staff number requirement and does not exceed at
least one of the limits set for the annual turnover and/or balance sheet total.

TBG assumes investments for the financing of innovation projects in accordance
with its investment principles, which form an integral part of this Agreement
and are accepted by the Investor, for:

-     applied research and development up to the crucial moment shortly before
      the start of commercial production in accordance with the EU definition
      and the following differentiations:

Applied research comprises research and experimental work with the purpose of
gaining new findings in order to facilitate the realization of specific
practical targets such as the creation of new products, production methods or
services. Normally, applied research ends with the creation of a first
prototype. The term "development" comprises work carried out on the basis of
applied research with the purpose of introducing new or essentially improved
products, production methods or services up to - but not including - industrial
application and commercial use. This includes in general pilot and demonstration
projects as well as any required further development work finally resulting in
an information package allowing the commencement of production.

-     investments for market introduction purposes

                                    SECTION 1

                                   COOPERATION

1)    TBG intends to assume a silent investment in the Technology Company in the
      amount of DM 3,000,000 provided that the investment specified in para. 2
      is agreed between the Investor and the Technology Company. A copy of the
      investment Agreement contemplated between TBG and the Technology Company
      is attached hereto.

2)    The investor shall contribute an amount of DM 3,000,000 to the capital
      reserve of the Technology Company.

      The Investor shall be advised on the management of its investment in the
      Technology Company by TVM Techno Venture Management GmbH & Co. KG,
      Denninger Str. 15, 81679 Munich (hereinafter: "TVM") as advising company.

      The Investor confirms that it does not make use of the refinancing of an
      investment in the Technology Company within the scope of the program
      "Investment Capital for Small

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      Technology Enterprises" and the promotion (refinancing or provision of
      security) of such investment in the Technology Company out of the ERP
      Special Fund.

3)    The parties shall inform each other in writing immediately as soon as the
      abovementioned investment agreements have been concluded with the
      Technology Company. To the extent the final investment agreements differ
      from the drafts made available, the agreements shall be delivered in their
      relevant version and any deviations shall be explained upon request.

4)    Any subsequent amendments to the investment agreements, any sale/pledge of
      the investments and the claims held against TBG under this Cooperation
      Agreement or any further investment or loan agreements shall be agreed by
      the parties with the consent of their contractual partner under this
      Agreement only. To the extent an ordinary termination of the Investment
      Agreement between the Investor and the Technology Company by the Investor
      is permissible, such termination shall also require the consent of TBG.
      The parties to this Agreement shall inform each other of any termination
      for cause immediately, if possible prior to giving notice of such
      termination.

                                    SECTION 2

                      MANAGEMENT OF THE TECHNOLOGY COMPANY

In cooperation with TVM, the Investor shall supervise the management of the
Technology Company and the development of the innovation project promoted by TBG
with due care and assist the Technology Company in management matters if
required.

The Investor is also willing and able in principle - however not obligated - to
make additional financing available to the Technology Company if required.

                                    SECTION 3

                                  USE OF FUNDS

1)    Prior to calling the invested funds of TBG, the Investor [and] TVM shall
      review the calling requirements agreed between TBG and the Technology
      Company and confirm their fulfillment, if applicable. The Investor and TVM
      shall support the call if at the time of the call, according to the
      knowledge of the Investor, neither economic nor technical concerns exist
      regarding the practicability of the innovative project promoted by TBG.

2)    The Investor shall review and confirm the statement of use to be furnished
      by the Technology Company pursuant to Sec. 3 of the Investment Agreement
      concluded between TBG and the Technology Company.

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                                    SECTION 4

                         INFORMATION AND CONTROL RIGHTS

1)    The Investor undertakes to report to TBG on the economic situation of the
      Technology Company and the status of the innovation project promoted by
      TBG.

2)    Reports shall be provided semi-annually at regular intervals as of March
      31 and September 30.

3)    Any measures known to the Investor that exceed the scope of the ordinary
      course of business of the Technology Company shall be notified to TBG
      without delay and if possible in advance. This shall include in particular
      the measures requiring consent pursuant to Sec. 5 para. 2 of the
      Investment Agreement concluded between TBG and the Technology Company and
      the causes for termination specified in Sec. 12 thereof.

4)    The reports shall be furnished in writing - and orally in advance in
      urgent cases - unless TBG waives this requirement expressly in writing.

5)    TBG shall be entitled - acting on its own or through third parties
      instructed by TBG - to demand comprehensive information on all legal
      relationships of the Investor with the Technology Company and to inspect
      all documents held by the Investor which concern the Technology Company.

6)    The Investor agrees that TBG forwards the existing data regarding its
      investment in the Technology Company to the BMBF or the EU Commission upon
      request for supervision and control purposes.

7)    The investor further agrees that TBG forwards the data obtained regarding
      the investment of the Investor in the Technology Company to the BMBF or an
      institute instructed by it for scientific analysis regarding the program
      mentioned in the Preamble hereof. In addition, the Investor agrees to
      provide the BMBF or an institute instructed by it with the information
      required for a scientific analysis regarding such program directly as
      well. During the analysis and, if applicable, the publication of data
      regarding the program, it shall be ensured that no damage is incurred by
      the investor.

                                    SECTION 5

                               RISK PARTICIPATION

The investor shall be entitled to claim from TBG partial reimbursement of any
loss incurred in connection with its investment in the Technology Company
acquired pursuant to Sec. 1 para. 2 within 5 years from the commencement of the
investment of TBG in the Technology Company.

1)    The Investor shall be entitled to assert claims against TBG on the grounds
      of a loss incurred if the assets of the Technology Company have been
      subjected to bankruptcy proceedings or overall execution has been
      instituted or the opening of proceedings has

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      been rejected for lack of assets, if an affirmation in lieu of an oath has
      been made for the Technology Company or if the continuing insolvency of
      the Technology Company has been proven by other means.

      Within 30 calendar days after the date on which claims were asserted
      against it, TBG shall reimburse to the Investor an amount of 50% (70% in
      case of the Technology Company being located within the new German federal
      states or (East) Berlin) of its original invested funds pursuant to Sec. I
      para. 2, however not exceeding 50% (70% in case of the Technology Company
      being located within the new German federal states or (East) Berlin) of
      the invested funds paid by itself to the Technology Company. Any
      permissible reduction of the investment of TBG effected pursuant to the
      Investment Agreement between TBG and the Technology Company shall be
      considered in the calculation of the maximum limit.

2)    If, as a result of a settlement in court, the claims of the Investor
      arising from its investment(s) specified in Sec. 1 para. 2 have been lost
      in part or if the Investor has partially waived the invested funds
      mentioned in Sec. 1 para. 2 within the scope of restructuring measures in
      which all lenders and investors of the Technology Company have
      participated - the latter at an equal rate - , the Investor may claim
      reimbursement of its partial loss from TBG. However, TBG shall only be
      obligated to pay an amount corresponding to a share in the maximum risk
      participation (cf. para. 1) that is proportionate to the share of the
      partial loss of the Investor in its entire invested funds as specified in
      Sec. 1 para. 2. Such partial claim shall reduce any further obligations of
      TBG under the risk participation.

3)    Until the end of the sixth calendar month following the assertion of
      claims against it, TBG may demand the Investor to transfer the
      investment(s) mentioned in Sec. 1 para. 2 to TBG or to a third party
      specified by TBG in whole or in part. Any obligations of the Investor
      regarding contributions, additional contributions and damages shall not be
      transferred to TBG. Any transfer costs shall be borne by the Investor. In
      case of assertion of partial claims against TBG pursuant to para. 2, the
      transfer obligation of the Investor shall be reduced proportionately to
      the payment obligation of TBG.

The transferability shall be guaranteed by the investor and shall constitute a
requirement for making use of the risk participation.

                                    SECTION 6

                      COMMENCEMENT AND TERM OF COOPERATION

1)    The Investor shall be obligated vis-a-vis TBG to manage the Technology
      Company pursuant to Sec. 2 and to provide information pursuant to See. 4
      hereof as from the signing date of this Agreement and the Investment
      Agreements between TBG and the Technology Company as well as the Investor
      and the Technology Company.

2)    The cooperation shall end upon the termination of the investment of TBG or
      of the Investor.

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3)    Ordinary termination of this Cooperation Agreement shall be excluded.

                                    SECTION 7

                               GENERAL PROVISIONS

1)    Any amendments or supplements to this Agreement shall require the written
      form. No oral supplementary agreements exist with respect hereto.

2)    Should any provision of this Agreement be invalid, the remaining
      provisions shall remain unaffected. The Investor and TBG shall be
      obligated to replace any invalid provision by a valid provision that come
      as close as possible to the intention and purpose of the respective
      invalid provision.

3)    Place of jurisdiction for all legal disputes arising from this Agreement
      and its performance shall be Bonn.

Bonn, [handwritten:]: August 26, 1997            West Caldwell, [handwritten.]
                                                 August 11, 1997

Technologie-Beteiligungs-                        APL American Pharmed Labs, Inc.
Gesellschaft mbH der
Deutschen Ausgleichsbank

[illegible signatures]                           [illegible signature(s)]

I, Monika Kordt, in my capacity as a sworn translator for the English language,
hereby certify that the above is a correct and complete translation of the
German text presented to me in copy.

Frankfurt am Main, November 8, 2004

                                           /s/ Monika Kordt
                                           ------------------
                                           Monika Kordt

                                           Monika Kordt
                                           Dipl. -Ubers. (FH), MSC
                                           Allgemein
                                           vereidigte
                                           Dolmetscherin und
                                           ermochtigte Ubersetzerin
                                           der englischen Sprache
                                           fur die Gerichte und Notare im Lande
                                           Hessen

                                       6<PAGE>

                                  Certified Translation from the German Language

                                                                  EXHIBIT 10.14

     Gesellschaft mbH der
TBG Deutschen Ausgleichsbank

Version 03.97

                              INVESTMENT AGREEMENT

         Agreement on the establishment of a dormant partnership between

                PHARMED LABS GMBH, TOLZER STR. 12, 82031 GRUNWALD

             - hereinafter referred to as the "TECHNOLOGY COMPANY" -

                                       and

                    TECHNOLOGIE-BETEILIGUNGS-GESELLSCHAFT MBH

        DER DEUTSCHEN AUSGLEICHSBANK, LUDWIG-ERHARD-PLATZ 1-3, 53179 BONN

             - the silent partner hereinafter referred to as "TBG" -

                                 of a volume of

                                 DM 3,000,000.00
        for the financing of the project described under Sec. 1 para. 2.

                                    PREAMBLE

Within the scope of the program "Investment Capital for Small Technology
Enterprises" implemented together with the German Ministry for Education,
Science, Research and Technology [BMBF] and Deutsche Ausgleichsbank, TBG
supports technology enterprises of the industry and trade sector, provided that
these enterprises are not older than 10 years and meet the EU qualification
requirements for small and medium-sized enterprises (SMEs) located within the
new German federal states and (East) Berlin and/or for small enterprises located
within the rest of the Federal Republic of Germany, i.e.

-     employ a maximum staff of 250 (50)

and either

      -     generate an annual turnover not exceeding DM 40 million (DM 10
            million)
or

      -     realize a balance sheet total not exceeding DM 20 million (DM 4
            million)
and

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      -     are held at a maximum share of 25% by one or several enterprises not
            fulfilling these requirements (exception: public holding companies,
            risk capital companies and - to the extent control is not exercised
            - institutional investors).

All of these three preconditions have to be fulfilled simultaneously, i.e. an
enterprise is only considered to be an SME if it enjoys the independence
required, complies with the staff number requirement and does not exceed at
least one of the limits set for the annual turnover and/or balance sheet total.

TBG effects investments for the financing of innovation projects in accordance
with its investment principles, which form an integral part of this Agreement
and are accepted by the Technology Company, for:

-     applied research and development up to the crucial moment shortly before
      the start of commercial production in accordance with the EU definition
      and the following differentiations:

      Applied research comprises research and experimental work with the purpose
      of gaining new findings in order to facilitate the realization of specific
      practical targets such as the creation of new products, production methods
      or services. Normally, applied research ends with the creation of a first
      prototype. The term "development" comprises work carried out on the basis
      of applied research with the purpose of introducing new or essentially
      improved products, production methods or services up to (but not
      including) industrial application and commercial use. This includes in
      general pilot and demonstration projects as well as any required further
      development work finally resulting in an information package allowing the
      commencement of production.

-     investments for market introduction purposes.

                                    SECTION 1
                             PURPOSE OF THE COMPANY

1)    As per its shareholders' agreement in the version dated May 30, 1997, the
      Technology Company entered under no. B 62843 in the Commercial Register of
      the Hamburg Local Court carries on a trade for

      research, development, production and distribution of pharmaceutical
      products and the performance of all business transactions serving such
      purpose.

2)    Within the scope of its company purpose, the Technology Company deals with
      the

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      development of lipid technology for the pre-oral administration of protein
      and peptid agents for medical therapy.

      development of topic therapy systems with local anesthetics/local
      analgesics for local pain elimination after trauma and surgery.

                                    SECTION 2
                                  CONTRIBUTION

1.    For the exclusive purpose of promoting the innovation project described in
      Sec. 1 para. 2 above and on the basis of the statements the Technology
      Company made in the application for investment dated May 23, 1997, TBG
      contributes an amount of DM 3,000,000, provided that the Technology
      Company produces evidence for the compliance with the following investment
      agreements:

      -     transfer of an amount of DM 3,000,000 to the capital reserve by APL
            American Pharmed Labs, Inc., 21 Henderson Drive, P.O.Box 1327, West
            Caldwell, New Jersey 07007-1327, U.S.A. (also in the event of
            several investors hereinafter referred to as the "Investor") and the
            Investor with whom TBG has entered into a cooperation agreement.

      -     direct debit authorization for the collection of the payable fixed
            remuneration by TBG.

2.    The TBG contribution shall be used for the co-financing of the
      project-related planning specified in Annex I which forms an integral part
      of this Investment Agreement.

3.    The Technology Company shall be authorized to call the contribution after
      the Company has been established (see Sec. 4 para. 1), if its immediate
      proper use, a utilization of funds in proportion with the other financing
      funds listed in Annex I and the overall financing of the innovation
      project are guaranteed.

      A statement confirming that all preconditions for such call have been
      fulfilled shall be provided by the Investor and TVM Techno Venture
      Management GmbH & Co.KG, Denninger Str. 15, 81679 Munchen, and accompany
      such call.

5.    When the first partial call is made, TBG shall be authorized to retain a
      processing fee of 1% of the total amount of contribution agreed upon
      hereunder.

6.    The TBG contribution shall be paid into a separate contribution account by
      the Technology Company. TBG shall not be authorized to withdraw funds from
      such account.

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                                    SECTION 3
                                STATEMENT OF USE

The Technology Company shall confirm the proper use of the contribution funds on
the form attached to the letter of commitment within a period of 3 months from
expiration of the project period specified in Annex I to this Agreement, subject
to an extension of this period by TBG. The statement of use shall be presented
to TBG via the Investor. Evidence for the proper use of funds shall be submitted
to the Investor and TBG upon request.

If the costs of the project listed in Annex I are reduced or if additional
public funds are subsequently obtained for the project, TBG shall be authorized
to reduce its contribution in proportion with the reduction of the investment
volume. The amount of reduction shall be returned to TBG immediately.

                                    SECTION 4
                    COMMENCEMENT AND DURATION OF THE COMPANY

1.    The silent partnership shall commence on the date this Agreement is signed
      by both parties.

2.    The silent partnership shall be limited in time and terminate on December
      31, 2007.

3.    Upon termination of the partnership relationship, the TBG contribution and
      any unpaid profit shares shall be become due for payment to TBG.

4.    If the funds granted by the Investor are returned prior to December 31,
      2007, the TBG contribution shall become due for repayment on the same date
      and to the same extent. In a corresponding application of Sec. 9 para. 4,
      TBG shall be authorized to demand a final compensation with respect to the
      portion of its contribution due for premature repayment.

                                    SECTION 5
                                   MANAGEMENT

1.    TBG shall not participate in the management of the Technology Company,
      unless otherwise provided for in the following.

2.    The Technology Company shall require the consent of TBG for

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      a)    modifications of the partnership agreement; this shall apply in
            particular to any changes in the object of the company, the
            admission of new partners or the agreement on new investments.

      b)    appointment or removal of managing directors of the Technology
            Company or modifications of the managing director service agreement;

      c)    conclusion, modification and termination of agreements on the
            issuance or the acquisition of licenses, trademarks or know how
            (except within the scope of the daily software business), patents,
            utility models, design patents to the extent they concern the
            innovation project promoted by the TBG investment;

      d)    conclusion, modification and termination of essential distribution
            agreements;

      e)    partial or total relocation, lease, sale or discontinuation of
            business operations;

      f)    conclusion and termination of domination and profit and loss
            transfer agreements;

      g)    discontinuation or essential modification of the innovation project
            described in Sec. 1 para. 2;

      h)    assumption of investment obligations - unless these obligations are
            included in the project financing by TBG - exceeding an amount of DM
            150,000 or a monthly amount of DM 15,000 in case of leasing, rental
            or lease agreements;

3.    The consent required under Sec. 5 para. 2 shall be obtained from TBG
      directly.

      Unless TBG refuses its consent in writing within a period of 14 days from
      the receipt of a notification concerning the measure requiring consent
      under Sec. 5 para. 2, consent shall be considered granted.

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                                    SECTION 6
                         INFORMATION AND CONTROL RIGHTS

1.    On a semi-annual basis, i.e. by March 31 and September 30 of each year,
      the Technology Company shall inform TBG of its economic situation and the
      status of the innovation project described under Sec. 1 para. 2, provided
      that TBG does not waive these reports because the Investor also exercises
      control functions with respect to the Technology Company for TBG. In
      addition, TBG shall receive from the Technology Company a brief monthly
      status report in accordance with Annex II and an updated business plan at
      the end of each financial year for the individually following year.

2.    Irrespective of the question whether the Investor also controls the
      Technology Company for TBG, the Technology Company shall directly inform
      TBG in due time of all measures exceeding the scope of the normal business
      operations.

3.    In addition, TBG shall be entitled to the control rights of Sec. 716
      German Civil Code [BGB]. This right of control shall also survive the
      termination of the partnership to the extent required for the review of
      the settlement assets.

      Moreover, TBG shall be authorized to inspect at any time all documents of
      the Technology Company relating to the innovation project described under
      Sec. 1 para. 2. TBG shall be authorized to instruct third parties to
      exercise its control rights.

4.    The Technology Company shall grant the Federal Ministry for Education,
      Science, Research and Technology and its agent submission, information and
      review rights to the same extent as granted to TBG. The Technology Company
      agrees that TBG transmits for scientific analysis of the program specified
      in the Preamble of this Agreement the data collected on its company and
      the promoted innovation project to the Federal Ministry for Education,
      Science, Research and Technology or an institute engaged by the Ministry.
      Moreover, the Technology Company agrees to directly furnish to the Federal
      Ministry for Education, Science, Research and Technology and an
      institution engaged by the Ministry the information required for the
      scientific analysis of the program; this shall also apply after the
      termination of the silent partnership. For the exercise of supervisory and
      control rights, the Federal Ministry shall be authorized to pass on the
      data obtained to the EU Commission. It shall be ensured that no
      disadvantages are caused to the Technology Company when the data on the
      program is processed and, if applicable, published.

5.    The Federal Audit Office [Bundesrechnungshof] shall be entitled to audit
      the Technology Company in accordance with Sec. 91 Federal Budget Act
      [BHO]. For audit purposes, the Technology Company shall make available to
      the Federal

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      Audit Office and TBG all documents considered necessary by the Federal
      Audit Office and furnish the respective information.

                                    SECTION 7
                                 ADVISORY BOARD

TBG shall be authorized to demand the establishment of an advisory board at any
time. TBG shall be represented on this advisory board in reasonable proportion
with the amount of its contribution. The advisory board shall advise the
Technology Company on all technical and economic matters, particularly in view
of the project described under Sec. 1 para. 2. The advisory board shall have the
same information and control rights as granted to TBG under this Agreement.

                                    SECTION 8
                   FINANCIAL YEAR, ANNUAL FINANCIAL STATEMENTS

1.    The silent partnership's financial year shall be the financial year of the
      Technology Company ("Investment Year"). The financial year of the
      Technology Company shall terminate on December 31 of each calendar year.

2.    In accordance with Secs. 238 through 289 German Commercial Code [HGB], the
      Technology Company shall prepare its annual financial statements (balance
      sheet, profit and loss account, notes) within a period of six months from
      expiration of the financial year; an original of the signed annual
      financial statements provided with the CERTIFICATE OF THE AUDITOR OR SWORN
      ACCOUNTANT shall be forwarded to TBG.

                                    SECTION 9
                             PROFIT AND LOSS SHARING

1.    TBG shall receive a minimum compensation of 6% for its contribution,
      independent from the Technology Company's profits/losses for the year.
      This compensation shall be subsequently payable on a semi-annual basis by
      March 31 and September 30 of each year.

2.    In addition, TBG shall receive an amount of 9% of the net profits for the
      year realized as from the calling of the contribution.

      For any period in which TBG holds more than one participation in the
      Technology Company, TBG, in addition to the respective minimum
      compensation, shall receive for all participations a compensation of only
      9% of the Company's net income for the year.

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      Should additional capital be injected into the Technology Company in
      further financing rounds, TBG shall adjust its profit share to the then
      applicable capital structure.

      Such share in profits shall be payable within two weeks following approval
      of the annual financial statements (Sec. 8 para. 2).

3.    The net income for the year prior to the TBG profit share shall be
      decisive for the calculation pursuant to para. 2.

      a)    To be added to the net income for the year are

            -     corporate income tax as well as bonus payments to the managing
                  directors, if any, to the extent these have reduced the
                  identified net income for the year;

            -     extraordinary expenses to the extent these result from
                  business transactions prior to commencement of the silent
                  partnership;

            -     losses and sales or destruction of economic goods of the fixed
                  assets to the extent such assets existed at the time of
                  commencement of the silent partnership.

      b)    To be deducted from the net income for the year are

            -     any amounts from the release of tax-free reserves set up prior
                  to the commencement of the silent partnership;

            -     extraordinary income to the extent it results from business
                  transactions prior to commencement of the silent partnership;

            -     public grants, subsidies and allowances to the extent these
                  affected the net income;

            -     income from the sale of economic goods of the fixed assets to
                  the extent such assets existed at the time of commencement of
                  the silent partnership.

      c)    In the year the investment is called, the net profits for the year
            shall be deemed to have been realized evenly throughout the year for
            the purpose of calculating the profit share pursuant to para. 2.

4.    By the end of the investment period, TBG shall be authorized to demand a
      one-time compensation of 30% of the amount of investment plus 6% of the
      investment

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      amount for each year following the expiration of the fifth completed year
      of investment (Final Compensation). The profit shares annually paid in
      accordance with Sec. 9 para. 2 shall be set off against the Final
      Compensation to be paid. If the amount of the profit shares exceeds the
      amount of the Final Compensation, no payment shall be effected.

      TBG shall make use of this right only if justified in its opinion in
      accordance with the overall economic situation of the Technology Company,
      the profits realized during the last three year prior to the termination
      of the investment or the silent reserves set up during the investment
      period in particular.

5.    TBG shall not participate in the losses of the Technology Company.

                                   SECTION 10
                                      TAXES

The Technology Company shall ensure payment of the statutory capital gains tax
including solidarity surcharge with regard to the compensation for the silent
participation and withhold capital gains tax including solidarity surcharge from
the respective payments to TBG and pay such tax immediately after it becomes due
to the competent tax office directly. Following payment, the Technology Company
shall issue to TBG within two months after payment becomes due confirmations
within the meaning of Sec. 45a para. 2 German Income Tax Act [EStG] on the forms
provided by TBG.

                                   SECTION 11
                        DISSOLUTION OF SILENT PARTNERSHIP

1.    If the Technology Company is dissolved, the silent partnership shall be
      dissolved as well. The silent participation shall be repaid in such case.

2.    Sec. 9 para. 4 shall also apply in such case.

                                   SECTION 12
                                   TERMINATION

1.    The Technology Company shall be entitled to repay the TBG investment in
      whole or in part observing a notice period of three months to June 30 or
      December 31 of each year. If such repayment is made by the end of the
      fifth completed year of investment, the TBG contribution shall be repaid
      with a 30% surcharge. As of the beginning of the sixth year of investment
      the provisions of Sec. 9 para. 4 shall apply. TBG may waive such surcharge
      payment if the termination is due to the

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      abandonment of the innovation project promoted in accordance with Sec. 1
      para. 2.

2.    In addition, the silent partnership may be terminated for cause without
      notice by written declaration of each of its partners. To the extent the
      contribution has not been paid or has not been paid in full, TBG shall be
      released from its contribution obligation upon the declaration of
      termination.

      In particular, TBG shall be entitled to termination for cause if

      a)    the Technology Company has provided incorrect information in its
            application for investment;

      b)    it turns out that the conditions for granting or maintenance of the
            investment were not fulfilled, the conditions for the maintenance of
            the investment are no longer given, the innovation project described
            under Sec. 1 para. 2 proves to be unsuccessful or is abandoned by
            the Technology Company or changed essentially. Should the innovation
            project described under Sec. 1 para. 2 proves to be technically
            impracticable or economically unsuccessful, TBG may waive the
            repayment of its investment in full or part if such waiver renders
            the continuation of the Technology Company possible;

      c)    the Technology Company does not present the statement of use
            pursuant to Sec. 3 in spite of a reminder within a period of three
            months from the date agreed;

      d)    bills of exchange accepted by the Technology Company are being
            protested, the Technology Company has stopped payments, an
            application for bankruptcy or the institution of court composition
            proceedings is filed or insolvency is determined in some other
            manner;

      e)    the individuals with know-how in management positions of the
            Technology Company at the time of the signing of the Agreement on
            the Silent Partnership are no longer full-time managers of the
            Technology Company;

      f)    one of the measures listed in Sec. 5 para 2 was performed without
            the prior consent of TBG.

                                       10
<PAGE>

                                   SECTION 13
                                  DUE PAYMENTS

Due payments shall bear interest at a rate of 4% p.a. from the occurrence of
default until receipt by TBG.

                                   SECTION 14
                               GENERAL PROVISIONS

1.    Any amendments of or additions to this Agreement shall be made in writing.
      There are no oral side agreements to this Agreement.

2.    Should any provision of this Agreement be legally invalid, the remaining
      provisions shall not be affected thereby. The Technology Company and TBG
      shall be obligated to replace any invalid contractual provisions by
      legally valid provisions coming as close as possible to the aim and
      purpose of the legally invalid provision.

3.    Place of jurisdiction for all legal disputes arising from this Agreement
      or its performance shall be Bonn.

Bonn, August 26, 1997                         Grunwald, August 20, 1997

Technologie-Beteiligungs                      Pharmed Labs GmbH
Gesellschaft mbH der
Deutschen Ausgleichsbank
                                              [company stamp]
[signature illegible]                         [signature illegible]

                                              Project-related Planning (Annex I)
                                              Brief Status Report (Annex II)
                                              TBG Investment Principles

                                       11
<PAGE>

      Gesellschaft mbH der
TBG Deutschen Ausgleichsbank

ANNEX I

                            PROJECT-RELATED PLANNING

PLANNING PERIOD: JUNE 1997 THROUGH JUNE 2000

<TABLE>
<CAPTION>
            PROJECT-SPECIFIC EXPENSES                                                      amount in DM (without VAT)
------------------------------------------------------                                     --------------------------
<S>                                                                                        <C>
I.    FOR APPLIED RESEARCH AND DEVELOPMENT
1.    INVESTMENTS IDENTIFIED AS TANGIBLE ASSETS IN THE
      BALANCE SHEET
1.1   Laboratory equipment and facilities                                                            650,000
1.2   Machines and facilities for the
      manufacture of prototypes
1.3   Others
2.    NON-INVESTMENT FUE EXPENSES
2.1   Personnel                                                                                    6,700,000
2.2   Material                                                                                       200,000
2.3   Third-party services
      (order placement/consultation)                                                                 700,000
2.4   Patents and licenses                                                                           300,000
2.5   Traveling expenses                                                                             300,000
2.6   Others
II INVESTMENTS FOR MARKET INTRODUCTION
Total                                                                                              8,850,000
</TABLE>

<TABLE>
<CAPTION>
PROJECT-SPECIFIC FINANCING                                                                 amount in DM (without VAT)
------------------------------------------------------                                     --------------------------
<S>                                                                                        <C>
1.    INTERNAL FUNDS
1.1   Cash flow                                                                                    2,850,000
1.2   ...
2.    INVESTMENT CAPITAL
2.1   TBG                                                                                          3,000,000
2.2   Lead Investor                                                                                3,000,000
2.3   Other investors
3.    PUBLIC FUNDS
3.1   Subsidies, grants, allowances
3.2   Others
4.    THIRD-PARTY CAPITAL
4.1   Bank
4.2   Others
TOTAL                                                                                              8,850,000
</TABLE>

                                       12
<PAGE>

TBG                                                      FAX NO.: 0228/831 24 93

ANNEX II

Technology Company:                                    Pharmed Labs GmbH
                                                       Tolzer Str. 12
                                                       82031 Grunwald

             BRIEF STATUS REPORT FOR THE MONTH OF* ........., 199...

<TABLE>
<CAPTION>
                         ACTUAL amount in TDM
                         --------------------
<S>                      <C>
sales
material costs
personnel costs
preliminary result

orders received
KK line
amount used

Special occurrences during the last month:
</TABLE>

Management prognosis regarding the future development:

- much better  - better  -  same -  worse   -  much worse

Grunwald,

                                           _____________________________________
                                           (manager signature and company stamp)

-----------------------------

* To be presented by the end of the following month at the latest

                                       13
<PAGE>

                      INVESTMENT PRINCIPLES FOR THE PROGRAM
                          "INVESTMENT CAPITAL FOR SMALL
                             TECHNOLOGY ENTERPRISES"

1.    TBG AS INVESTOR

      Technology-Beteiligungs-Gesellschaft mbH (TBG) is a subsidiary of Deutsche
      Ausgleichsbank. Within the scope of the program "Investment Capital for
      Small Technology Enterprises"* implemented together with the Federal
      Ministry for Education, Science, Research and Technology TBG assumes
      silent participations in Technology Companies without generally
      participating in the Technology Company's management.

      An essential condition for such investment is that another Lead Investor
      participates in the Technology Company in at least the same amount as TBG
      and also manages the TBG investment on the basis of a cooperation
      agreement.

2.    INVESTMENT PURPOSE

      The investments serve for the financing of innovation projects (see item
      3.1), i.e. for:

      -     applied research and development up until the crucial moment shortly
            before commercial production is taken up;

      -     investments for market introduction.

3.    INVESTMENT CONDITIONS

3.1 INNOVATION PROJECTS

      -     Through the innovation project new techniques are intended to be
            applied for the first time within the enterprise.

      -     The developments affecting the project's innovative core shall be
            provided by the enterprise itself. If services are required for
            individual development phases, the enterprise shall prepare the
            respective specifications itself.

      -     The new product (procedure/service) differs in its essential
            functions from the previous products (procedure/service) of the
            enterprise.

      -     The new product (procedure/service) provides competition advantages
            (function, quality, price) and market chances on the (regional,
            national, European, international) markets relevant for the
            enterprise.

3.2   INVESTEES

      tbg investments may be obtained by enterprises of the industry and trade
      sector, provided that these enterprises fulfill the following conditions:

      SMALL ENTERPRISES

      -     registered offices located within the Federal Republic of Germany
            and

      -     50 employees as a maximum and either an

      -     annual turnover of a maximum of DM 10 million or a balance sheet
            total of a maximum of DM 4 million

      MEDIUM-SIZED ENTERPRISES

      -     registered offices located within the new German federal states and
            (East) Berlin and

      -     250 employees as a maximum and either an

      -     annual turnover of a maximum of DM 40 million or a balance sheet
            total of a maximum of DM 20 million

* [Footnote missing in the original text!]

      Technologie-Beteiligungs-
TBG   Gesellschaft mbH der
      Deutschen Ausgleichsbank

      ECONOMIC INDEPENDENCE

      Companies not fulfilling the qualification criteria for small and
      medium-sized enterprises may hold an interest not to exceed 25% in the
      enterprise.

      (exception: public holding companies, risk capital companies and -
      provided that control is not exercised - institutional investors)

      AGE:
      10 years as a maximum.

      TECHNICAL AND COMMERCIAL EXPERT KNOWLEDGE

      The Technology Company must have the technical expert knowledge required
      for the development and production work and must be able to document that
      the required commercial knowledge is available to the Technology Company.

      Commercial know-how may also be made available by way of external experts
      - e.g. the Lead Investor -, provided that the Technology Company has not
      realized any significant turnovers prior to the time the application for
      investment is filed.

3.3   COOPERATING LEAD INVESTOR

      The Lead Investors cooperating with TBG may be holding companies as well
      as natural and legal persons providing equity to enterprises.

      The Lead Investor must take over an investment in the same amount as TBG.
      The Lead Investor shall advise and support the Technology Company with
      respect to all commercial and financial matters and, if necessary, must
      also be able to offer management and marketing support services. In
      principle, the Lead Investor must be willing and able to provide
      additional financing funds.

      Prior to the investment, the Lead Investor shall verify and plausibly
      document the investment requirements for TBG as well. During the
      investment period the Lead Investor shall monitor the management of the
      Technology Company and the development of the innovation project and
      inform TBG of the economic situation of the Technology Company and the
      innovation project. In addition, the Lead Investor shall participate in
      the preparation of the statement of use (see 3.4). Details shall be
      governed by a cooperation agreement between the Lead Investor and TBG.

3.4   OVERALL FINANCING

      The overall financing of the innovation project has to be secured. The
      investment funds may only be used for the financing of the innovation
      project(s) for which the investment has been committed. The Lead Investor
      shall be informed immediately if the innovation project or its financing
      is changed.

      If the innovation project costs are reduced subsequently or if additional
      public funds are subsequently obtained for the financing of the innovation
      project so that a financing of more than 100% results, the return of the
      investment funds may be demanded.

                             [Rest of text missing!]

                                       14
<PAGE>

I, Michael W. Brien, in my capacity as a sworn translator for the English
language, hereby certify that the above is an accurate and complete translation
of the German text presented to me in electronic form.

Frankfurt am Main, November 11, 2004

/s/ Michael W. Brien
--------------------
(Michael W. Brien)

                                       15

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