Document:

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                                                                    Exhibit 10.5

                                ESCROW AGREEMENT

         This ESCROW AGREEMENT is made and entered into as of DECEMBER 15, 2003
by and between Entropin, Inc., a Delaware corporation (the "Company"), and
LaSalle Bank National Association, a national banking association, as escrow
agent (the "Escrow Agent").

                                    RECITALS

                  A. The Company intends to sell shares of Common Stock of the
Company (the "Shares") pursuant to an offering (the "Offering") registered under
the Securities Act of 1933.

                  B. The Company will not close the Offering until the Company
has received and accepted subscriptions for Shares totaling at least $500,000
(the "Minimum Condition") and the satisfaction of those other conditions
contained in Section 4 hereto. The Offering will terminate on the earliest of
(1) the date on which the Company accepts subscriptions for all unsold Shares
which it intends to sell in the Offering, (2) February 13, 2004, unless the
Minimum Condition has been satisfied and the Company has delivered notice under
Section 4(a) by such date, in which event the Company may extend the Offering
for up to an additional 60 days, or (3) the date the Company elects, in its sole
discretion, to terminate the Offering (the date on which the Offering terminates
being referred to herein as the "Termination Date").

                  C. The Escrow Agent has agreed to serve as the escrow agent
for the Offering on the terms and conditions contained herein.

                                   AGREEMENTS

                  In consideration of the recitals and mutual covenants and
agreements set forth herein, the parties hereby covenant and agree as follows:

                  1. APPOINTMENT. The Company appoints the Escrow Agent as
escrow agent for the purpose of holding the Escrow Funds (as defined below). The
Escrow Agent hereby accepts its appointment and agrees to act as escrow agent
under the terms and conditions contained in this Escrow Agreement.

                  2. DELIVERY OF FUNDS. The Company agrees that the Company will
deliver to the Escrow Agent, promptly after receipt of any subscriptions for the
Shares, the subscription funds (which shall be equal to the gross offering price
for the Shares subscribed) in the form of a personal, bank, cashier's check or
wire transfer payable to "LaSalle Bank National Association, Escrow Agent, for
Entropin, Inc.," and to provide the Escrow Agent, in writing, with the name,
address and Taxpayer Identification Number of each subscriber and the number of
Shares for which each subscriber has subscribed. The Escrow Agent agrees to

<PAGE>

place any subscription funds so received (the "Escrow Funds") in an account
maintained by the Escrow Agent under the designation "Entropin, Inc." (the
"Escrow Account"). Following the Termination Date and once all of the Escrow
Funds and any interest or earnings accrued thereon have been disbursed pursuant
to this Escrow Agreement, the Escrow Agent shall take all necessary action to
close the Escrow Account.

         Unless otherwise specifically directed herein, the Escrow Agent shall
proceed as soon as practicable to collect any checks or other collection items
at any time deposited or received hereunder. All such collections shall be
subject to the usual collection agreement regarding items received by its
commercial banking department for deposit or collection. The Escrow Agent shall
have no duty to (i) notify anyone of any payment or maturity under the terms of
any instrument deposited or received hereunder or (ii) take any legal action to
enforce payment of any check, note or security deposited or received hereunder.
In the event that any funds, including cleared funds, deposited in the Escrow
Account prove uncollectible after the funds represented thereby have been
released by the Escrow Agent pursuant to this Agreement, the Company shall
immediately reimburse the Escrow Agent upon request for the face amount of such
check or checks, together with reasonable and customary charges and expenses
related thereto, and the Escrow Agent shall deliver the returned checks or other
instruments to the Company. The Company acknowledges that its obligation in the
preceding sentence shall survive the termination of this Agreement and the
resignation or removal of the Escrow Agent. The Escrow Agent (in its capacity as
escrow agent hereunder) shall have no liability for, or obligation to pay,
interest on any money deposited or received hereunder, except as provided in
Section5. The Escrow Agent will not be required to lend to, or advance, or pay
out of its own funds any sums whatsoever for the account of the Company.

         If the Company rejects any subscription for which the Escrow Agent has
already collected funds, the Escrow Agent shall promptly issue a refund check to
the rejected subscriber. If the Company rejects any subscription for which the
Escrow Agent has not yet collected funds but has submitted the subscriber's
check for collection, the Escrow Agent shall promptly issue a check in the
amount of the subscriber's check to the rejected subscriber after the Escrow
Agent has cleared such funds. If the Escrow Agent has not yet submitted a
rejected subscriber's check for collection, the Escrow Agent shall promptly
remit the subscriber's check directly to the subscriber.

                  3. ESCROW. The Escrow Agent agrees to hold the Escrow Funds
received by the Escrow Agent in accordance with Section 2 hereof until the
release of the Escrow Funds pursuant to Section 4 hereof.

                  4. RELEASE OF THE ESCROW FUNDS. The Escrow Agent shall not
release any part of the Escrow Funds to any party except as provided in this
Section 4.

                           (a) DISBURSEMENT OF OFFERING PROCEEDS. If the Escrow
         Agent receives written notice signed by the Company in the form of
         Exhibit A attached hereto, the Escrow Agent will promptly release the
         Escrow Funds, along with any interest or other earnings thereon and any
         additional Escrow Funds delivered to the Escrow Agent thereafter, less
         the amount of any of the Escrow Agent's fees pursuant to Section 6
         hereof not previously paid, to the Company.

                                       2
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                           (b) TERMINATION OF THE OFFERING. If, at any time
         prior to the disbursement pursuant to Section 4(a) above, the Company
         provides written notice to the Escrow Agent in the form of Exhibit B
         attached hereto that the Offering has been terminated, the Escrow Agent
         will promptly return to each subscriber the funds in the full amount of
         the subscriber's subscription price along with the subscriber's pro
         rata share of any interest or earnings accrued on the Escrow Funds, at
         the address of the subscriber provided in accordance with Section 2 of
         this Escrow Agreement. All calculations of a subscriber's pro rata
         share of any interest or earnings accrued on the Escrow Funds shall be
         performed by the Company and provided to the Escrow Agent.

                           (c) END OF OFFERING PERIOD. The Company will notify
         the Escrow Agent in writing of any extension of the Termination Date.
         If the Escrow Agent has not received a disbursement notice from the
         Company pursuant to Section 4(a) hereof prior to 5 p.m. on the
         Termination Date, the Escrow Agent will promptly return to each
         subscriber the funds in the full amount of the subscriber's
         subscription price along with the subscriber's pro rata share of any
         interest or earnings accrued on the Escrow Funds, at the address of the
         subscriber provided in accordance with Section 2 of this Escrow
         Agreement. All calculations of a subscriber's pro rata share of any
         interest or earnings accrued on the Escrow Funds shall be performed by
         the Company and provided to the Escrow Agent.

                  5. INVESTMENT OF ESCROW FUNDS. The Company hereby directs the
Escrow Agent to invest and reinvest the Escrow Funds in the Federated Treasury
Obligations Fund (Trust Shares). The interest or other earnings on such
investments shall be added to the Escrow Account and shall be considered part of
the Escrow Funds. If requested by the Company, the Escrow Agent shall provide to
the Company periodic statements of all funds in the Escrow Account and the names
of the subscribers whose subscription funds have been deposited in the Escrow
Account. Any investments hereunder may be sold by the Escrow Agent in order to
distribute Escrow Funds pursuant to the provisions of this Escrow Agreement. Any
loss incurred in the sale of any investment shall be borne by the Escrow
Account.

                  6. THE ESCROW AGENT'S FEES. As compensation for the services
of the Escrow Agent hereunder, the Company agrees to pay to the Escrow Agent
such fees as are set forth on Exhibit C attached hereto. The Acceptance and
Administration Fees (as set forth on Exhibit C) are due upon execution of the
Escrow Agreement. If the Company fails to pay the Escrow Agent any reasonable
expenses that it may incur within five (5) business days of receipt of the
Escrow Agent's written presentation of appropriately documented invoices to the
Company, the Escrow Agent is hereby authorized by the Company to deduct such
amount from any funds due to the Company hereunder, and from any of the
Company's accounts maintained with the Escrow Agent, other than the Escrow
Account.

                                       3
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                  7. ESCROW AGENT. The Escrow Agent shall have no duties or
responsibilities other than those expressly set forth in this Escrow Agreement.
The Escrow Agent shall be liable as a depository only and shall not be
responsible or accountable for the correctness of any information set forth in
any statements delivered to it including, without limitation, any disbursement
notice delivered by the Company pursuant to Section 4(a) or Section 4(b), shall
not be required in any event to verify the correctness of any such statements
and shall not be responsible for verifying compliance by the Company with the
Securities Act of 1933, the rules and regulations thereunder or any other
securities laws, rules or regulations, or the terms of any subscription
agreement. The Escrow Agent shall be entitled to rely, without any investigation
whatsoever, upon any communication received from the Company, and the Escrow
Agent shall be entitled to deem the signatories of any subscription agreement or
any communication submitted to it hereunder as being those purported to be
authorized to sign such communication on behalf of such party and shall be
entitled to rely on the genuineness of the signatures of such signatories
without inquiry and without sustaining evidence of any kind. The Escrow Agent
shall have the right to consult with counsel and shall be fully protected and
shall not be liable with respect to any action taken or omitted by the Escrow
Agent in good faith and on advice of counsel, and shall be fully protected and
shall not be liable for any error of judgment or for any act done or omitted by
it in good faith, except for its own gross negligence or willful misconduct. The
Escrow Agent shall have no duties to anyone except those signing this Escrow
Agreement. The Escrow Agent shall have the right to perform any of its duties
hereunder through agents, attorneys, custodians or nominees. In addition:

                           (a) if any property held under this Escrow Agreement
         is attached, garnished or levied upon by any court order, or the
         delivery thereof shall be stayed or enjoined by an order of court, or
         any order, judgment or decree shall be made or entered by any court
         affecting the property deposited under this Escrow Agreement, or any
         part thereof, the Escrow Agent is expressly authorized, in its sole
         discretion, to obey and comply with all writs, orders or decrees so
         entered or issued, which it is advised by legal counsel of its own
         choosing are binding upon it, whether with or without jurisdiction, and
         in case the Escrow Agent obeys or complies with any such writ, order or
         decree, it shall not be liable to any of the parties hereto or to any
         other person, firm or corporation by reason of such compliance
         notwithstanding that such writ, order or decree may be subsequently
         reversed, modified, annulled, set aside or vacated;

                           (b) if the Escrow Agent becomes involved in
         litigation on account of this deposit or of this Escrow Agreement, it
         shall have the right to retain counsel and shall have a lien on the
         property deposited hereunder for any and all reasonable costs,
         attorneys' and solicitors' fees, charges, disbursements, and expenses
         in connection with such litigation, and shall be entitled to reimburse
         itself therefor out of the property deposited hereunder, and if it
         shall be unable to reimburse itself from the property deposited
         hereunder, the Company agrees to pay to the Escrow Agent, on demand,
         its reasonable charges, counsel and attorneys' fees, disbursements and
         expenses in connection with such litigation; and

                                       4
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                           (c) any corporation or association into which the
         Escrow Agent may be converted or merged, or with which it may be
         consolidated, or to which it may sell or transfer its corporate trust
         business and assets as a whole or substantially as a whole, or any
         corporation or association resulting from any such conversion, sale,
         merger, consolidation or transfer to which it is a party, shall be and
         become the successor Escrow Agent hereunder, vested with all of the
         title to the whole property or trust estate and all of the trusts,
         powers, immunities, privileges, protections and all other matters as
         was its predecessor, without the execution or filing of any instrument
         or any further act, deed or conveyance on the part of any of the
         parties hereto, anything herein to the contrary notwithstanding.

                  8. INDEMNIFICATION. The Company agrees to indemnify and hold
harmless the Escrow Agent, and its directors, officers, employees, and agents,
from and against any taxes, assessments, liabilities, claims, damages, actions,
suits, costs and expenses (including reasonable attorneys' fees and expenses
actually incurred) or other charges suffered or incurred by the Escrow Agent,
and its directors, officers, employees, and agents, in connection with the
performance of its services hereunder, unless caused by the Escrow Agent's gross
negligence or willful misconduct. The Escrow Agent is hereby authorized by the
Company to deduct such amount from any funds due to the Company hereunder, and
if it shall be unable to reimburse itself from such funds, the Company agrees to
pay to the Escrow Agent on demand such amount. The costs and expenses of
enforcing this right of indemnification also shall be paid by the Company. The
provisions of Sections 7 and 8 hereof shall survive the termination of this
Escrow Agreement and the resignation or removal of the Escrow Agent.

                  9. NO CONTROL. It is agreed that, except as explicitly
permitted by this Escrow Agreement, the Company shall have no right to receive,
manage, transfer or otherwise control, in any way, any amounts held in the
Escrow Account and at no time prior to actual payment from the Escrow Account
shall the Company be considered to be in actual or constructive receipt of any
amounts held in the Escrow Account.

                  10. MISCELLANEOUS.

                           (a) This Escrow Agreement constitutes the entire
         agreement of the parties hereto with respect to the subject matter
         hereof, and this Escrow Agreement may not be modified or amended except
         by written instrument executed by all of the parties hereto. The
         Company acknowledges that the Escrow Agent is neither a party to, nor
         bound by any provisions of, any subscription agreement.

                           (b) This Escrow Agreement shall be binding upon, and
         shall inure to the benefit of, and solely to the benefit of, the
         parties hereto and their respective successors and assigns. This Escrow
         Agreement shall not be enforceable by or inure to the benefit of any
         other third party including, without limitation, any Subscriber.

                           (c) This Escrow Agreement shall be governed by and
         construed in accordance with the laws of the State of Illinois, without
         giving effect to any choice of law or conflict of law provision or rule
         (whether of the State of Illinois or any other jurisdiction) that would
         cause the application of the law of any jurisdiction other than the
         State of Illinois.

                                       5
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                           (d) All notices, requests, demands and other
         communications hereunder shall be in writing and shall be deemed to
         have been duly given or made upon receipt, if delivered personally, on
         the next business day following delivery to a nationally recognized
         overnight courier service, on the third business day following deposit
         in the U.S. mail if mailed by registered or certified mail (postage
         prepaid, return receipt requested) to the parties at the following
         addresses (or at such other address for a party as shall be specified
         by like changes of address) or the next business day following
         electronic transmission to the telecopier number specified below with
         receipt acknowledged.

                  If to the Company:

                               Entropin, Inc.
                               45926 Oasis Street
                               Indio, CA 92201
                               Attn:  Patricia G. Kriss, Chief Financial Officer
                               Telephone No.: (760) 775-8333
                               Facsimile No.:  (760) 775-1224

                  If to the Escrow Agent:

                               LaSalle Bank National Association
                               135 South LaSalle Street
                               Suite 1960
                               Chicago, Illinois  60603
                               Attention:  Stacy M. Coleman
                               Telephone: (312) 904-2936
                               Facsimile:  (312) 904-2236

                  11. ESCROW DISPUTE. In the event of any disagreement between
the Company and subscribers resulting in adverse claims and demands being made
in connection with or for the Escrow Funds, the Escrow Agent shall be entitled,
at its option, to hold the Escrow Funds until such time as a mutual agreement
has been reached among all of the parties or until disbursement is legally
authorized by final judgment or decree of any court having jurisdiction
thereover, or to deposit the Escrow Funds with any court having jurisdiction
thereover pending the resolution of the disagreement.

                                       6
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                  12. TERMINATION. This Escrow Agreement shall terminate and be
of no further force or effect on the earlier to occur of: (a) receipt by the
Escrow Agent of written notice of termination executed by the Company; or (b)
the closing of the Escrow Account in accordance with the provisions hereof.

                  13. RESIGNATION. The Escrow Agent may resign at any time by
giving thirty (30) days' prior written notice of such resignation to the
Company, such resignation to be effective on the date specified in such notice.
Upon the effectiveness of such resignation, the Escrow Agent shall transfer the
Escrow Funds to such succeeding escrow agent, or to such other persons, as the
Company designates in writing to the Escrow Agent prior to the effectiveness of
the resignation. The Escrow Agent shall be paid any outstanding fees and
expenses prior to transferring the Escrow Funds to a successor escrow agent. In
the event no such designation has been provided, the Escrow Agent shall deposit
the Escrow Fund with any court having jurisdiction thereover. Prior to the
effectiveness of the resignation of the Escrow Agent, the Escrow Agent shall
remain obligated to perform all duties required of it under this Escrow
Agreement.

                  14. COUNTERPARTS. This Escrow Agreement may be executed in one
or more counterparts, each of which shall be deemed an original.

                            [SIGNATURE PAGE FOLLOWS]

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         IN WITNESS WHEREOF, the parties hereto have executed this Escrow
Agreement as of the day and year first above written.

                                        Entropin, Inc.

                                        By: /s/ Patricia G. Kriss
                                           -------------------------------------
                                                 Patricia G. Kriss
                                        Its:     Chief Financial Officer

                                        LASALLE BANK NATIONAL ASSOCIATION,
                                        as Escrow Agent

                                        By: /s/ R.C. Bergman
                                           -------------------------------------

                                        Its:      First Vice President

                                       8
<PAGE>

                                    EXHIBIT A
                               DISBURSEMENT NOTICE
                        DISBURSEMENT OF OFFERING PROCEEDS

                             (Date)

LaSalle Bank National Association
Corporate Trust Services Division
135 South LaSalle Street, Suite 1960
Chicago, Illinois  60603

Attention:  Stacy M. Coleman

         Re:      Escrow Account No. __________________

Dear [ADMINISTRATOR]:

         1. Reference is made to that certain Escrow Agreement dated as of
December __, 2003 (the "Escrow Agreement") by and between Entropin, Inc., a
Delaware corporation (the "Company"), and LaSalle Bank National Association, a
national banking association. All terms used but not defined herein shall have
the respective meanings given such terms in the Escrow Agreement.

         2. The Company hereby certifies that the Company has received and
accepted subscriptions for Shares with gross proceeds of at least $500,000;

         3. You are hereby directed to disburse the Escrow Funds to the Company
as follows: ________________________________________.

         IN WITNESS WHEREOF, the undersigned has executed this statement as of
the date first hereinabove set forth.

                                      Entropin, Inc.

                                      By:
                                         -------------------------------
                                      Its:
                                          ------------------------------

<PAGE>

                                    EXHIBIT B
                               DISBURSEMENT NOTICE
                                   TERMINATION

                                     (Date)

LaSalle Bank National Association
Corporate Trust Services Division
135 South LaSalle Street, Suite 1960
Chicago, Illinois  60603
Attention: Stacy M. Coleman

         Re:      Escrow Account No. __________________

Dear [ADMINISTRATOR]:

         1. Reference is made to that certain Escrow Agreement dated as of
December __, 2003 (the "Escrow Agreement") by and between Entropin, Inc., a
Delaware corporation (the "Company"), and LaSalle Bank National Association, a
national banking association. All terms used but not defined herein shall have
the respective meanings given such terms in the Escrow Agreement.

         2. The Company has terminated the Offering prior to the disbursement of
offering proceeds pursuant to Section 4(a) of the Escrow Agreement.

         3. You are hereby directed to disburse the Escrow Funds to the
subscribers in accordance with Section 4(b) of the Escrow Agreement.

         IN WITNESS WHEREOF, the undersigned has executed this statement as of
the date first hereinabove set forth.

                                         Entropin, Inc.

                                         By:
                                            ------------------------------------
                                         Its:
                                             -----------------------------------

<PAGE>

                                    EXHIBIT C

                                  ESCROW AGENT
                                SCHEDULE OF FEES

Acceptance Fee:                     $   500.00

Annual Administration Fee:          $ 2,500.00

THE ACCEPTANCE AND FIRST YEAR'S ANNUAL ADMINISTRATION FEES ARE DUE UPON
EXECUTION OF THE ESCROW AGREEMENT.

Any investment transaction NOT in a money market fund or a LaSalle Enhanced
Liquidity Management account will incur a $150.00 per transaction fee. The
parties to the agreement understand and agree that the Escrow Agent may receive
certain revenue on certain mutual fund investments. These revenues take one of
two forms:

Shareholder Servicing Payments: Escrow Agent may receive Shareholder Servicing
Payments as compensation for providing certain services for the benefit of the
Money Market Fund Company. Shareholder Services typically provided by LaSalle
include the maintenance of shareholder ownership records, distributing
prospectuses and other shareholder information materials to investors and
handling proxy-voting materials. Typically Shareholder Servicing payments are
paid under a Money Market Fund's 12b-1 distribution plan and impact the
investment performance of the Fund by the amount of the fee. The shareholder
servicing fee payable from any money market fund is detailed in the Fund's
prospectus that will be provided to you.

Revenue Sharing Payments: Escrow Agent may receive revenue sharing payments from
a Money Market Fund Company. These payments represent a reallocation to Escrow
Agent of a portion of the compensation payable to the fund company in connection
with your account's money market fund investment. Revenue Sharing payments
constitute a form of fee sharing between the fund company and Escrow Agent and
do not, as a general rule, result in any additional charge or expense in
connection with a money market fund investment, are not paid under a 12b-1 plan,
and do not impact the investment performance of the Fund. The amount of any
revenue share, if any, payable to Escrow Agent with respect to your account's
investments is available upon request.

All out-of-pocket expenses will be billed at the Escrow Agent's cost.
Out-of-pocket expenses include, but are not limited to, professional services
(e.g. legal or accounting), travel expenses, telephone and facsimile
transmission costs, postage (including express mail and overnight delivery
charges), and copying charges.<PAGE>

                                                                    Exhibit 10.6

                              EMPLOYMENT AGREEMENT
                              --------------------

         THIS AGREEMENT is made as of the 1st day of December, 1999, between
Entropin, Inc., a Colorado corporation (the "Employer" or the "Company") and
Thomas G. Tachovsky (the "Employee").

         WHEREAS, the Employer desires to employ the Employee, and the Employee
desires to be employed by the Employer, on the terms and subject to the
conditions provided herein;

         NOW, THEREFORE, in consideration of the mutual covenants contained in
this Agreement, the Employer and Employee hereby agree as follows:

                                    ARTICLE I
                              EMPLOYMENT AND DUTIES
                              ---------------------

         1.1 EMPLOYMENT. The Employer agrees to employ the Employee and the
Employee agrees to be employed by the Employer upon the terms and conditions
hereinafter set forth. During the term of this Agreement, Employee will be
employed by the Company to serve as the President and Chief Executive Officer of
the Company.

         1.2 DUTIES. Employee will perform those duties and have such authority
and powers as are customarily associated with the offices of a President and
Chief Executive Officer and as set forth in the Employer's Bylaws and, as may
from time to time be assigned by the Board of Directors (the "Board").

         1.3 EXTENT OF DUTIES. Employee shall devote all of his time, attention,
energy, knowledge, and skill solely and exclusively to performing all duties as
President and Chief Executive Officer, subject to the supervision and direction
of the Company's Board. Employee shall not engage in consulting work on any
trade or business for his own account or for or on behalf of any other person,
firm, corporation or other entity which, in any such case, would interfere with,
or adversely affect, the performance of the Employee's services under this
Agreement.

                                   ARTICLE II
                               TERM OF EMPLOYMENT
                               ------------------

         2.1 TERM OF EMPLOYMENT. The term of employment of Employee by the
Company will commence on December 1, 1999 and will continue unless terminated as
set forth herein. The employment is not for any specific period of time. This
Agreement supersedes any and all prior representations made to Employee
regarding term of employment.

         2.2 TERMINATION. This Agreement may be terminated by either party at
any time, with or without cause, upon providing written notification thereof to
the other party.

         2.3 EFFECT OF TERMINATION ON OPTION AGREEMENT. Notwithstanding anything
to the contrary contained in this Agreement, any termination of Employee's
employment by the Company will have the effect of terminating the Employee's
non-vested rights under that certain Stock Option Agreement granted to Employee
pursuant to the Company's 1998 Stock Compensatory Plan, which agreement was
entered into between the Employee and the Company as of December 1, 1999 (the
"Option Agreement"), a copy of which is attached as Exhibit B.

<PAGE>

         2.4 REMEDIES. Any termination of this Agreement shall not prejudice any
other remedy to which the Employer or Employee may be entitled, either at law,
equity, or under this Agreement.

                                   ARTICLE III
                     OFFICE SUPPORT AND PLACE OF EMPLOYMENT
                     --------------------------------------

         The employment shall be performed primarily from Employee's office in
North Easton, MA, except for required travel for Employer's business.
Secretarial and staff support will be provided from the Company's principal
place of business in Indio, California.

                                   ARTICLE IV
                       CONFIDENTIALITY AND NON-COMPETITION
                       -----------------------------------

         4.1 CONFIDENTIALITY. Employee and Employer have previously executed the
Confidentiality Agreement attached hereto as Exhibit A which is expressly
incorporated herein and made a part hereof.

         4.2 NON-COMPETITION. In consideration of Employee's access to the
Confidential Information, as defined in the Confidentiality Agreement referenced
in section 4.1, Employee agrees that during the term of this Agreement and after
termination of Employee's employment, Employee will not, directly or indirectly,
use such Confidential Information to compete with the business of the Company,
as the business of the Company may then be constituted, within any state, region
or locality in which the Company is then doing business or marketing its
products. Employee understands and agrees that direct competition means
development, production, promotion, or sale of products or services competitive
with those of Company. Indirect competition means employment by any competitor
or third party providing products competing with Company's products, for which
Employee will perform the same or similar function as he performs for Company.
In addition, after termination of Employee's employment, Employee will not
induce or attempt to induce any employee of the Company to discontinue his or
her employment with the Company for the purpose of becoming employed by any
competitor of Company, nor will Employee initiate discussions, negotiations or
contacts with persons known by Employee to be a customer or supplier of the
Company at the time of Employee's termination of employment for the purpose of
competing with the Company.

         4.3 ASSIGNMENT OF INVENTIONS. All processes, inventions, patents,
copyrights, trademarks, and other intangible rights (collectively the
"Inventions") that may be conceived or developed by Employee, either alone or
with others, during the term of Employee's employment, whether or not conceived
or developed during Employee's working hours, and with respect to which the
equipment, supplies, facilities, or trade secret information of Company was
used, or that relate at the time of conception or reduction to practice of the
Invention to the business of the Company or to Company's actual or demonstrably
anticipated research and development, or that result from any work performed by
Employee for Company, will be the sole property of Company, and Employee hereby

                                       2
<PAGE>

assigns to the Company all of Employee's right, title and interest in and to
such Inventions. Employee must disclose to Company all inventions conceived
during the term of employment, whether or not the invention constitutes property
of Company under the terms of the preceding sentence, but such disclosure will
be received by Company in confidence. Employee must execute all documents,
including patent applications and assignments, required by Company to establish
Company's rights under this Section.

                                   ARTICLE V
                          COMPENSATION OF THE EMPLOYEE
                          ----------------------------

         5.1 SALARY. As compensation for services rendered under this Agreement,
the Employee shall receive a salary at the rate of $200,000 per annum ("Annual
Salary") to be paid in accordance with Employer's normal practices. The salary
provided in this subsection shall in no way be deemed exclusive and shall not
prevent Employee from participating in any other compensation or benefit plan of
Employer.

         5.2 STOCK OPTION. In addition to the above salary, Employee shall
receive an option to purchase 400,000 shares of the Company's Common Stock,
$0.001 par value, at an exercise price of $5.00 per share, which may be
exercised, when vested. An Option Agreement, setting forth the terms of the
stock option issued to the Employee, is attached as Exhibit B and incorporated
into this Agreement, and is to be executed contemporaneously with this
Agreement. The stock option shall vest during the term of this Agreement as
follows:

                  5.2.1    100,000 shares when the Phase III-A Clinical Trial is
                           completed and the report is submitted to the FDA;

                  5.2.2    150,000 shares when the Phase III-B Clinical Trial is
                           completed and the New Drug Application ("NDA") is
                           submitted to the FDA;

                  5.2.3    150,000 shares when the NDA is approved.

         5.3 WITHHOLDING. The Employer shall withhold from any Annual Salary or
any other compensation or benefits payable under this Agreement, all federal,
state, city or other taxes as shall be required pursuant to Law.

         5.4 BENEFITS. Employee shall be entitled to vacation, leave of absence,
and leave for illness or temporary disability (collectively, "Leave Time") in
accordance with the policies of the Employer in effect from time to time. The
Employee may participate in all of Employer's employee benefit plans and
employees benefits, including any retirement, pension, profit-sharing, stock
option, insurance, hospital or other plans and benefits which now may be in
effect or which may hereafter be adopted, it being understood that Employee
shall have the same rights and privileges to participate in such plans and
benefits as any other executive employee during the term of this Agreement.
Participation in any benefit plans shall be in addition to the compensation
provided for in Section 5.1.

                                       3
<PAGE>

         5.5 EXPENSES. The Employer shall assume or reimburse the Employee for
any and all reasonable and necessary expenses incurred by Employee in the
performance of his duties hereunder, including reasonable travel expenses,
provided the Employee shall have presented to the Employer an itemized
accounting of such expenses. The maximum amount available for such expenses
during any period may be fixed in advance by the Employer's Board of Directors.
Nothing contained in this Agreement shall be construed to mean that any payments
made under this Section 5.5 of this Agreement are in the form of compensation to
the Employee. All payments made pursuant to this Section shall be solely to
reimburse the Employee for expenses reasonably incurred in carrying out his
obligations and duties under this Agreement.

         5.6 REIMBURSEMENT OF CERTAIN EXPENSES. Any payment made by the Employer
to or for the benefit of the Employee under this Agreement which shall be
disallowed in whole or in part as a deductible expense by the Internal Revenue
Service shall be reimbursed by the Employee to the Corporation upon request to
the full extent of such disallowance. In lieu of payment by the Employee,
subject to approval by the Board, proportionate amounts may be withheld from the
Employee's future salary payments until the amount owed to the Employer has been
recovered.

                                   ARTICLE VI
                                 INDEMNIFICATION
                                 ---------------

         6.1 INDEMNIFICATION. To the fullest extent permitted by applicable law,
Employer agrees to indemnify, defend and hold Employee harmless from any and all
claims, actions, costs, expenses, damages and liabilities, including, without
limitation, reasonable attorneys' fees, hereafter or heretofore arising out of
or in connection with activities of Employer or its employees, including
Employee, or other agents in connection with and within the scope of this
Agreement or by reason of the fact that he is or was a director or officer of
Employer of any affiliate of Employer. To the fullest extent permitted by
applicable law, Employer shall advance to Employee expenses of defending any
such action, claim or proceeding. However, Employer shall not indemnify Employee
or defend Employee against, or hold him harmless from any claims, damages,
expenses or liabilities, including attorneys' fees, resulting from the gross
negligence or willful misconduct of Employee. The duty to indemnify shall
survive the expiration or early termination of this Agreement as to any claims
based on facts or conditions which occurred or are alleged to have occurred
prior to expiration or termination.

                                   ARTICLE VII
                               GENERAL PROVISIONS
                               ------------------

         7.1 GOVERNING LAW. This Agreement shall be governed by and construed in
accordance with the laws of the State of Colorado.

         7.2 ARBITRATION AND JUDICIAL PROCEEDINGS. Any controversy or claim
arising out of or relating to this Agreement, or breach of this Agreement
(except any controversy or claim with respect to Article IV), is to be settled
by arbitration in Denver, Colorado in accordance with the Commercial Arbitration
Rules of the American Arbitration Association, and judgment on the award
rendered by the arbitrators may be entered in any court having jurisdiction.
Notwithstanding anything in this Agreement to the contrary, if any controversy
or claim arises between the parties under Article IV of this Agreement, the

                                       4
<PAGE>

Company will not be required to arbitrate that controversy or claim but the
Company will have the right to institute judicial proceeding in any court of
competent jurisdiction with respect to such controversy or claim. The parties
agree and acknowledge that in any such judicial proceedings, the Denver District
Court or the United States District Court for the District of Colorado shall
have proper personal jurisdiction over the parties and that venue in Denver,
Colorado shall be proper. If such judicial proceedings are instituted, the
parties agree that such proceedings will not be stayed or delayed pending the
outcome of any arbitration proceeding under this Agreement.

         7.3 FEES AND COSTS. If any judicial action or arbitration proceeding is
necessary to enforce or interpret the terms of this Agreement, the prevailing
party shall be entitled to an award of its or his reasonable attorney fees and
costs incurred, in addition to any other relief to which that party may be
entitled.

         7.4 ENTIRE AGREEMENT. This Agreement supersedes any and all other
Agreements, whether oral or in writing, between the parties with respect to the
employment of the Employee by the Employer.

         7.5 SUCCESSORS AND ASSIGNS. This Agreement, all terms and conditions
hereunder, and all remedies arising herefrom, shall insure to the benefit of and
be binding upon Employer, any successor in interest to all or substantially all
of the business and/or assets of Employer, and the heirs, administrators,
successors and assigns of Employee. Except as provided in the preceding
sentence, the rights and obligations of the parties hereto may not be assigned
or transferred by either party without the prior written consent of the other
party.

         7.6 NOTICES. For purposes of this Agreement, notices, demands and all
other communications provided for in this Agreement shall be in writing and
shall be deemed to have been duly given when delivered or mailed by United
States registered mail, return receipt requested, postage prepaid, addressed as
follows:

         If to Employee:   Thomas G. Tachovsky
                           39 Riverside Terrace
                           North Easton, MA   02356

         If to Employer:   Entropin, Inc.
                           45926 Oasis Street
                           Indio, California   92201
                           Attention:  Higgins D. Bailey

or to such other address as either party may have furnished to the other in
writing in accordance herewith, except that notices of change of address shall
be effective only upon receipt.

         7.7 SEVERABILITY. If any provision of this Agreement is prohibited by
or is unlawful or unenforceable under any applicable law of any jurisdiction as
to such jurisdiction, such provision shall be ineffective to the extent of such
prohibition without invalidating the remaining provisions hereof.

                                       5
<PAGE>

         7.8 SECTION HEADINGS. The section headings used in this Agreement are
for convenience only and shall not affect the construction of any terms of this
Agreement.

         7.9 SURVIVAL OF OBLIGATIONS. Termination of this Agreement for any
reason shall not relieve Employer or Employee of any obligation accruing or
arising prior to such termination.

         7.10 AMENDMENTS. This Agreement may be amended only by written
agreement of both Employer and Employee.

         7.11 COUNTERPARTS. This Agreement may be executed in one or more
counterparts, each of which shall constitute an original but all of which, when
taken together, shall constitute only one legal instrument. This Agreement shall
become effective when copies hereof, when taken together, shall bear the
signatures of both parties hereto. It shall not be necessary in making proof of
this Agreement to produce or account for more than one such counterpart.

                                             "EMPLOYER"

                                             ENTROPIN, INC.

                                             By:       /S/ DONALD HUNTER
                                                --------------------------------
                                                   Donald Hunter, Vice President

                                             "EMPLOYEE"

                                                       /S/ THOMAS G. TACHOVSKY
                                             -----------------------------------
                                             Thomas G. Tachovsky

                                       6

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