Document:

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                                                                  Exhibit 10.5

[REDACTED - OMITTED MATERIAL HAS BEEN FILED SEPARATELY WITH THE COMMISSION AND
IS DENOTED HEREIN BY **.]

                        INVESTMENT AND ROYALTY AGREEMENT

This Investment and Royalty Agreement (the "Agreement") is made as of June 22,
2001, by and between Pilot Therapeutics, Inc., a North Carolina corporation
("Pilot"), and PharmaBio Development, Inc., a North Carolina corporation
("PharmaBio").

BACKGROUND AND OVERVIEW

A.       Pilot and Innovex LP ("Innovex"), an Affiliate of PharmaBio, have
         executed a Commercialization Agreement (herein so called) on the date
         hereof, pursuant to which Innovex will provide exclusive Sales Force
         Services in the United States for the Product.

B.       Pilot and PharmaBio have agreed that PharmaBio will fund certain of the
         Sales Force Services and issue a loan commitment to Pilot, pursuant to
         the terms and conditions set forth herein.

C.       Pilot has agreed as set forth herein to grant to Quintiles
         Transnational Corp. ("Quintiles") a preferred relationship as set forth
         in Section 4.0.

FOR GOOD AND VALUABLE CONSIDERATION, THE RECEIPT AND SUFFICIENCY OF WHICH ARE
HEREBY ACKNOWLEDGED, THE PARTIES AGREE AS FOLLOWS:

1.0      DEFINITIONS.

1.1      "Adjusted Commitment" shall mean, as of the date on which it is being
         determined, the sum of (x) the Commitment Amount actually theretofore
         funded by PharmaBio and (y) the estimated Commitment Amount remaining
         based upon the most recent Sales and Marketing Expense Budget of the
         JMC.

1.2      "Affiliate" shall mean, as to any person or entity, any corporation or
         business entity controlled by, controlling, or under common control
         with such party or entity. For this purpose, "control" shall mean
         direct or indirect beneficial ownership of at least fifty percent (50%)
         of the voting stock or income interest in such corporation or other
         business entity.

1.3      "Annual Period" shall mean a twelve-month period beginning on the
         Funding Date and each anniversary thereof.

1.4      "Commitment Amount" shall mean 50% of the Sales and Marketing Expenses
         incurred during the period beginning on the SF Commencement Date and
         ending on the fifth anniversary thereof.

1.5      "FDA" shall mean the US Food and Drug Administration.
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1.6      "Funding Date" shall mean the later of (x) the SF Commencement Date or
         (y) the Launch Date.

1.7      "Initial Sales Forecast" shall mean the Net Sales forecast as of the
         date hereof for each Annual Period in the Royalty Term set forth on
         Exhibit A, which Net Sales forecast shall not include projected Net
         Sales outside of the United States.

1.8      "IRR" shall mean PharmaBio's internal rate of return, calculated as
         described and clarified on Schedule 1.8.

1.9      "JMC" shall mean the joint marketing committee established under the
         Commercialization Agreement. If for any reason the Commercialization
         Agreement is terminated (including, but not limited to, termination as
         described in Section 3.6 herein), or the JMC is otherwise disbanded
         under the Commercialization Agreement, then Pilot and PharmaBio shall
         in good faith form an advisory body composed of an equal number of
         designees of Pilot and PharmaBio; provided, that Pilot shall have at
         least the same rights and authority with respect to such advisory body
         as it had with respect to the JMC. In such event, the advisory body
         shall perform all of the obligations under this Agreement that would
         otherwise have been performed by the JMC, and all references to the JMC
         herein shall thereafter be deemed references to such advisory body.

1.10     "Launch Date" shall mean the date upon which the Product is first
         shipped in the United States for commercial sale.

1.11     "Maximum Investment" shall mean $** Million. (All dollar references in
         this Agreement shall refer to United States Dollars.)

1.12     "Minimum IRR" shall mean an IRR for the full Royalty Term equal to
         seventy percent (70%) of the Target IRR.

1.13     "Minimum Sales Force Level" shall mean eighty percent (80%) of the
         sales force size for the Product recommended by the JMC from time to
         time pursuant to Section 3.3 and thereafter pursuant to the
         Commercialization Agreement.

1.14     "Net Sales" means the amount billed by Pilot or an Affiliate, or on
         behalf of or for the benefit of Pilot or an Affiliate, for sales of the
         Product to a non-Affiliate third party in the Territory less: (i)
         discounts, including cash and quantity discounts, charge-back payments,
         refunds and rebates granted to managed health care organizations or to
         federal, state and local governments (including, without limitation,
         Medicaid rebates), their agencies, and purchasers and reimbursers or to
         trade customers, including but not limited to, wholesalers and chain
         and pharmacy buying groups, (ii) credits or allowances actually granted
         upon claims, damaged goods, rejections or returns of such Product,
         including recalls, regardless of the party requesting such, (iii)
         freight, postage, shipping and insurance charges actually allowed or
         paid for delivery of Product, to the extent billed, (iv) taxes, duties
         or other governmental charges levied on, absorbed or

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         otherwise imposed on sale of such Product, including without limitation
         value-added taxes, or other governmental charges otherwise measured by
         the billing, when included in billing, as adjusted for rebates and
         refunds, and (v) bad debts related to Product sales (defined as any
         bills unpaid for 120 days after due), provided that (a) any subsequent
         collection by Pilot on such bad debt shall be restored as Net Sales at
         the time of collection, and in the amount, of such collection, and (b)
         Pilot shall follow commercially reasonable practices of collecting and
         otherwise administering debt related to Product sales.

1.15     "Pre-Launch Sales Forecast shall mean the revised Net Sales forecast
         calculated by the JMC for each Annual Period in the Royalty Term based
         upon all clinical data and other relevant information available to the
         JMC (including, without limitation, Pilot's reasonably expected budget
         for sales, marketing and other promotional expenses) a reasonable time
         prior to the earlier of the SF Commencement Date or the Launch Date,
         which Net Sales forecast shall not include projected Net Sales outside
         of the United States.

1.16     "Product" shall mean the product currently known as PLT 3514, as such
         name may change from time to time, for the treatment of any and all
         indications.

1.17     "Quintiles Group" shall mean collectively Innovex, PharmaBio and
         Quintiles.

1.18     "Royalty Term" means the seven consecutive Annual Periods beginning on
         the Funding Date.

1.19     "Sales and Marketing Expenses" shall mean the fees and expenses payable
         to Innovex under the Commercialization Agreement for Sales Force
         Services.

1.20     "Sales and Marketing Expense Budget," as of the date on which it is
         being determined, shall mean the budgeted Sales and Marketing Expenses
         determined by the JMC to be required to reasonably support sales of the
         Product in the United States at the levels set forth in the most recent
         Net Sales projections of the JMC.

1.21     "Sales Force Services" shall mean the recruitment, deployment and
         management of a dedicated sales force for the promotion of the Product
         pursuant to the terms of the Commercialization Agreement.

1.22     "SF Commencement Date" shall mean the first date upon which Innovex
         provides Sales Representatives under the Commercialization Agreement.

1.23     "Target IRR" shall mean an IRR for the full Royalty Term equal to
         thirty percent (30%).

1.24     "Territory" shall mean the United States (including Puerto Rico) and
         Canada.

2.0      COMMERCIALIZATION AGREEMENT.

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         The Commercialization Agreement is in the form attached hereto as
         Exhibit B. All defined terms used herein but not defined in this
         Agreement shall have the meanings set forth in the Commercialization
         Agreement.

3.0      INVESTMENT AND ROYALTY; RELATED AGREEMENTS.

3.1      PharmaBio will support the commercialization of the Product as follows:

         (a)      PharmaBio shall support the commercialization of the Product
                  by funding the Commitment Amount, subject to the Maximum
                  Investment and other terms and conditions contained in the
                  Agreement.

         (b)      Subject to Section 3.1(c), the Commitment Amount shall be
                  funded as follows: (i) an amount equal to ten percent (10%) of
                  the estimated Commitment Amount, calculated using the JMC's
                  five-year budget for Sales and Marketing Expenses prepared
                  pursuant to Section 3.3, shall be paid by PharmaBio to Pilot
                  within ten (10) days of the SF Commencement Date; and (ii) an
                  amount equal to fifty percent (50%) of the actual Sales and
                  Marketing Expenses shall be paid by PharmaBio to Pilot within
                  thirty (30) days of receipt by Pilot of the corresponding
                  invoice from Innovex.

         (c)      Notwithstanding the above, without the approval of PharmaBio,
                  in no event shall any portion of any payment be made to Pilot
                  to the extent that such portion would cause the amount paid to
                  exceed (i) $6 Million for any Annual Period, or (ii) the
                  Maximum Investment for all Annual Periods.

3.2      In consideration for PharmaBio's funding commitments set forth in
         Section 3.1, Pilot shall pay PharmaBio a royalty on Net Sales during
         the Royalty Term. The royalty payments payable by Pilot to PharmaBio
         with respect to each Annual Period are as follows:

         ----------------------------------- -----------------------
          ANNUAL PERIOD DURING THE ROYALTY    ROYALTY ON NET SALES
                        TERM
         ----------------------------------- -----------------------
                          1                            **%
         ----------------------------------- -----------------------
                          2                            **%
         ----------------------------------- -----------------------
                          3                            **%
         ----------------------------------- -----------------------
                          4                            **%
         ----------------------------------- -----------------------
                          5                            **%
         ----------------------------------- -----------------------
                          6                            **%
         ----------------------------------- -----------------------
                          7                            **%
         ----------------------------------- -----------------------

         The royalty payments under this Section 3.2 shall be paid as soon as
         reasonably practicable following the end of each calendar quarter (but
         not later than sixty (60) days following the end of each calendar
         quarter) during the seven Annual Periods in the Royalty Term, except
         that (i) the first payment shall be made as soon as reasonably

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         practicable following the last day of the calendar quarter in which the
         Funding Date occurs (but not later than sixty (60) days following the
         end of such calendar quarter) and (ii) the last payment shall be made
         not later than sixty (60) days following the seventh anniversary of the
         Funding Date.

3.3      The JMC shall take the following actions a reasonable time prior to the
         earlier of the Launch Date or the SF Commencement Date: (i) prepare the
         Pre-Launch Sales Forecast; (ii) agree to the sales force size and
         required promotional activities to reasonably support sales of the
         Product in the United States at the levels set forth in the Pre-Launch
         Sales Forecast; and (iii) agree to a five-year budget for Sales and
         Marketing Expenses and the resulting estimated Commitment Amount. If
         the Pre-Launch Sales Forecast differs from the Initial Sales Forecast
         such that the projected IRR (based on the estimated Commitment Amount
         derived from the five-year budget for Sales and Marketing Expenses)
         differs from the Target IRR, then the JMC shall establish adjusted
         royalty amounts payable to PharmaBio during the Royalty Term such that
         (x) PharmaBio's projected IRR (based on the estimated Commitment Amount
         derived from the five-year budget for Sales and Marketing Expenses)
         equals (y) the Target IRR. The adjusted royalty amounts established by
         the JMC pursuant to the preceding sentence will replace the royalty
         amounts set forth in Section 3.2 for all purposes. The adjustments to
         the royalty payments based upon the Pre-Launch Sales Forecast, as set
         forth in this Section 3.3, shall be the only situation where royalty
         amounts are adjusted so that PharmaBio's projected IRR on the estimated
         Commitment Amount (derived from five-year budget for Sales and
         Marketing Expenses) equals the Target IRR. Notwithstanding the
         procedures for JMC decisions set forth in the Commercialization
         Agreement, in the event that the representatives of the JMC are unable
         to unanimously agree to a Pre-Launch Sales Forecast, the size of the
         sales force, or the related Sales and Marketing Expense Budget (and the
         resulting estimated Commitment Amount) as set forth in this Section
         3.3, the following process shall be followed:

         (a)      Each party shall promptly, and in no event later than thirty
                  (30) days following deadlock by the JMC, select a nationally
                  recognized consulting firm with expertise in the
                  pharmaceutical industry to determine the relevant calculation.
                  Such firms shall be instructed to render their respective
                  calculations within sixty (60) days of their respective
                  engagements. If the calculations of the two consulting firms
                  do not vary by more than ten percent (10%) (determined as a
                  percentage of the lower calculation value), the calculation
                  value shall be the average of the two values. Each party shall
                  bear the fees and expenses of the consulting firm it engages.

         (b)      If the calculations of the two consulting  firms vary by more
                  than ten percent (10%) (determined as a percentage of the
                  lower calculation value), unless the parties otherwise agree
                  to average the results as specified in subparagraph (a) above,
                  the two firms shall, within twenty (20) days, select a
                  mutually recognized consulting firm with expertise in the
                  pharmaceutical industry to render a report containing a
                  determination of the relevant calculation within sixty (60)
                  days of its engagement. In such event, the calculation value
                  shall be equal to the

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                  average of (i) the calculation value as determined by the
                  third consulting firm and (ii) the average of the two
                  calculation values determined in accordance with subparagraph
                  (a) above. The fees and expenses of the third consulting firm
                  shall be borne equally by the parties.

         On or about each anniversary of the date of the Pre-Launch Forecast,
         the JMC shall (i) prepare an updated Net Sales forecast; (ii) agree to
         the sales force size and required promotional activities to reasonably
         support sales of the Product in the United States at the levels set
         forth in the updated Net Sales forecast; and (iii) agree to an updated
         Sales and Marketing Budget and resulting estimated Commitment Amount.
         For the avoidance of doubt, the process described in (a) and (b) above
         shall be applicable for five (5) Annual Periods (plus any period during
         with the Royalty Term is suspended pursuant to Section 3.4) to the
         extent the JMC is unable to unanimously agree on the matters set forth
         in the preceding sentence.

3.4      Pilot shall use commercially reasonable efforts to commercialize the
         Product. In this regard, Pilot will provide a sales force of a size not
         less the Minimum Sales Force Level during the first five Annual
         Periods. If, at any time during such five-year period, Pilot reduces
         the Product sales force below the Minimum Sales Force Level for a
         period of more than sixty (60) days, then Pilot and PharmaBio will
         negotiate in good faith to restructure PharmaBio's commitments under
         Section 3.1 and the corresponding royalty amounts under Section 3.2 (as
         the same may be adjusted pursuant to Section 3.3), which negotiations
         will take into account the implications of the reduced sales force size
         on future sales of the Product. If the parties are unable to agree to
         such restructuring within thirty (30) days after PharmaBio gives
         written notice to Pilot of its intent to pursue a remedy under this
         Section 3.4 for Pilot's failure to maintain the Minimum Sales Force
         Level, then PharmaBio may, at its sole discretion by written notice to
         Pilot, elect to suspend the following: (i) all future funding
         obligations under Section 3.1; and (ii) the running of the Royalty Term
         (including, without limitation, the then-current Annual Period). During
         the suspension period, PharmaBio shall continue to receive royalties at
         the rate of 10%. If PharmaBio elects this remedy, the then operating
         Annual Period for royalty payments under Section 3.2, and the funding
         commitments under Section 3.1, shall be suspended until the Minimum
         Sales Force Level is satisfied. Such Annual Period, and the funding
         commitments under Section 3.1, shall restart when the Minimum Sales
         Force Level is satisfied, at the same time point such Annual Period was
         suspended, such that PharmaBio enjoys the full length of the seven (7)
         Annual Periods described in Section 3.2 with the benefit of the Minimum
         Sales Force Level for five full twelve-month periods, and the term
         "Royalty Term" shall, for all purposes under this Agreement, be
         extended accordingly. The exercise of PharmaBio's remedy in this
         Section 3.4 in no way impacts PharmaBio's right to receive the Minimum
         IRR. PharmaBio's remedies under this Section 3.4 shall be suspended for
         any period that Innovex fails to satisfy its sales force staffing
         obligations under the Commercialization Agreement. Notwithstanding
         anything herein to the contrary, PharmaBio's rights under this Section
         3.4 shall be expressly subject to the provisions of Section 3.6.

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         For the avoidance of doubt, the process described in Section 3.3(a) and
         Section 3.3(b) shall be applicable for five (5) Annual Periods to the
         extent the JMC is unable to unanimously agree on the Minimum Sales
         Force Level.

3.5      The parties agree to adjust royalty payments under Section 3.2 (as the
         same may be adjusted pursuant to Section 3.3) if actual royalty
         payments (or deemed royalty payments as set forth in Section
         3.6(b)(iv)) based upon Net Sales result in a projected IRR (based on
         the Adjusted Commitment) for the full Royalty Term below the Minimum
         IRR. In this regard, the JMC will review Net Sales for the period
         ending on the second anniversary of the Launch Date and for each Annual
         Period thereafter. Based upon such review, if Net Sales fall below
         forecasted Net Sales such that PharmaBio's projected IRR (based on the
         Adjusted Commitment) for the full Royalty Term falls below the Minimum
         IRR, the royalty amounts applicable to future Annual Periods shall be
         increased to a level projected (based upon revised Net Sales forecasts)
         to achieve the Minimum IRR. The adjusted royalty amounts shall be set
         by the JMC and shall be applied over remaining Annual Periods as
         determined by the JMC and designed to achieve the Minimum IRR.

         If at the end of the third or any subsequent anniversary of the Launch
         Date, PharmaBio's projected IRR for the full Royalty Term (based on the
         Adjusted Commitment derived from the revised Net Sales forecasts)
         exceeds the Minimum IRR and any portion of such excess is attributable
         to increased royalty levels as provided in this Section 3.5 above, the
         royalty amounts applicable to future Annual Periods shall be decreased
         to a level projected (based on the Adjusted Commitment derived from the
         revised Net Sales forecasts) to achieve the Minimum IRR, but in no
         event shall such royalty decrease be greater than the sum of all
         royalty increases made in accordance with the preceding paragraph. The
         adjusted royalty amounts shall be set by the JMC and shall be applied
         over remaining Annual Periods as determined by the JMC.

         A final reconciliation will occur within sixty (60) days after the end
         of the Royalty Term. During the final reconciliation, actual royalty
         payments to PharmaBio will be measured against the Minimum IRR and, to
         the extent a variance exists, either (i) royalty payments to PharmaBio
         based upon increased royalty amounts pursuant to this Section 3.5 that
         exceed the IRR to which PharmaBio would have been entitled based on the
         royalty rates set forth in Section 3.2 (as adjusted pursuant to Section
         3.3 but assuming no other adjustment had been made) shall be returned
         to Pilot within ten (10) days after such final reconciliation, or (ii)
         an additional royalty will be granted to PharmaBio if actual royalties
         paid to PharmaBio fell below the Minimum IRR so that PharmaBio will
         achieve the Minimum IRR upon receipt of additional royalties paid after
         the Royalty Term (with such additional royalties designed to deliver
         PharmaBio the additional royalties in a period of not less than two
         years following the final reconciliation). For the avoidance of doubt,
         PharmaBio shall not be obligated to return any portion of the royalty
         payments under clause (i) that would result in PhamaBio's failing to
         achieve the Minimum IRR.

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         Notwithstanding the procedures for JMC decisions set forth in the
         Commercialization Agreement, in the event that the JMC representatives
         are unable to unanimously agree to an adjusted royalty structure
         pursuant to this Section 3.5, then the consulting firm process
         described in Sections 3.3(a) and 3.3(b) shall be followed.

3.6      In the event that Pilot terminates the Commercialization Agreement
         under Section 12.3 thereof, then:

                  (a) Pilot shall use commercially reasonable efforts in good
         faith to identify, retain and train a new sales force (the "New Sales
         Force") as soon as practicable to perform substantially similar
         functions as were to have been provided by Innovex under the
         Commercialization Agreement;

                  (b) during the period (the "Transition Period") beginning on
         the effective date of Pilot's termination of the Commercialization
         Agreement and ending on the first day of the month next following the
         date on which the New Sales Force begins detailing physicians:

                           (i) Pilot's obligation to provide the Minimum Sales
                  Force Level shall be suspended;

                           (ii) PharmaBio shall have none of the suspension or
                  other remedial rights that it would otherwise have under
                  Section 3.4 as a result of Pilot's failure to provide the
                  Minimum Sales Force Level or otherwise;

                           (iii) in lieu of the royalty rate set forth in
                  Section 3.2 (as adjusted in accordance with Sections 3.3 and
                  3.5), Pilot's royalty obligation to PharmaBio hereunder shall
                  equal the product of (A) the royalty rate set forth in Section
                  3.2 (as adjusted in accordance with Sections 3.3 and 3.5)
                  multiplied by (B) the percentage that Net Sales is during the
                  Transition Period of projected Net Sales for the Transition
                  Period (based on the JMC's most recent Net Sales projections,
                  prorated, to the extent necessary, on a reasonable, good faith
                  basis);

                           (iv) for purposes of any calculation hereunder with
                  respect to PharmaBio's receipt of the Minimum IRR, PharmaBio
                  shall be deemed to have been paid royalties in an amount equal
                  to the greater of (A) actual royalty payments under Section
                  3.6(b)(iii), or (B) the royalty payments that would have been
                  paid to PharmaBio if Net Sales during the Transition Period
                  had been equal to the projected Net Sales for the Transition
                  Period (based on the JMC's most recent Net Sales projections,
                  prorated, to the extent necessary, on a reasonable, good faith
                  basis); and

                           (v) the Royalty Term shall continue to run during the
                  Transition Period such that it will continue to expire on the
                  seventh anniversary on the Funding Date;

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                  (c) PharmaBio's funding commitments under Section 3.1 shall
         continue in full force and effect, and all references hereunder to
         Innovex shall be deemed to refer to the New Sales Force (and all
         references to (i) the Commercialization Agreement hereunder shall be
         deemed to refer to the agreement, if any, pursuant to which Pilot
         retains the New Sales Force and (ii) Innovex hereunder shall be deemed
         to refer to the New Sales Force or the contract provider of the New
         Sales Force, as applicable); and

                  (d) For the remainder of the Royalty Term, "Minimum IRR" shall
         mean 60% of the Target IRR.

3.7      As of the date hereof, the parties have entered into a Loan Agreement.
         Such Loan Agreement is in the form attached hereto as Exhibit C.
         Pursuant to the Loan Agreement, PharmaBio will extend to Pilot a loan
         in the amount of up to $6 Million.

3.8      Notwithstanding anything to the contrary in this Agreement, PharmaBio's
         funding commitments under Section 3.1 shall terminate unless the
         Pre-Launch Sales Forecast projects that annual peak sales of the
         Product will be at least $** Million for any of the seven (7) Annual
         Periods in the Royalty Term.

3.9      Each Party shall keep or cause to be kept such records as are required
         to determine, in a manner consistent with generally accepted accounting
         principles in the United States, the sums or credits due under this
         Agreement. Upon the written request of either party, the other party
         shall permit an independent certified public accountant appointed by
         such party and reasonably acceptable to the other party, accompanied by
         representatives of the financial department of such party at reasonable
         times and upon reasonable notice, to audit only those records as may be
         necessary to determine the correctness or completeness of any report or
         payment made under this Agreement. Results of any such audit shall be
         (i) limited to information relating to the Product, (ii) made available
         to both parties and (iii) subject to the confidentiality protections
         set forth herein. The party requesting the audit shall bear the full
         cost of the performance of any such audit, unless such audit discloses
         a variance of more than five percent (5%) from the amount of the
         original report, royalty or payment calculation. In such case, the
         party being audited shall bear the full cost of the performance of such
         audit.

3.10     The representations and warranties set forth in the Loan Agreement are
         incorporated in this Agreement by reference and form part of the
         consideration given to PharmaBio in exchange for PharmaBio's
         commitments set forth herein.

3.11     Without the prior approval of PharmaBio, Pilot shall not, nor shall it
         allow any Affiliate or third party acting on behalf of or for the
         benefit of Pilot or any Affiliate to, commercialize a product that
         would reasonably be expected to compete with the Product during the
         Royalty Term (e.g., a product designed to reduce asthmatic episodes or
         to reduce the inflammation underlying asthma). PharmaBio shall not
         unreasonably withhold such approval if Pilot offers PharmaBio the
         opportunity to participate in the commercialization of such product
         (including receipt of royalty payments by

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         PharmaBio) such that PharmaBio will be in an economic position at least
         as favorable as it would have been if the competing product were not
         commercialized.

4.0      GRANT OF FIRST AND PREFERRED OPPORTUNITY BY PILOT TO QUINTILES.

         Pilot hereby grants to Quintiles the first and preferred opportunity to
         negotiate with Pilot to provide (a) clinical trial coordination and
         execution and (b) commercialization services of the type commonly
         provided by Innovex that Pilot has, in its sole discretion, determined
         to outsource for the period beginning on the date hereof and ending
         five years following the Funding Date; provided that, as determined in
         Pilot's sole discretion: (i) the applicable services fall with the
         areas of recognized expertise of Quintiles (or its Affiliates), (ii)
         Quintiles (or its Affiliates) provides such services at competitive
         rates and makes its proposal on a competitive time schedule, and (iii)
         Quintiles (or its Affiliates) expressly agrees to provide such services
         to meet Pilot's timeline.

5.0      CONFIDENTIALITY AND OWNERSHIP OF INFORMATION.

5.1      Pilot on the one part and PharmaBio on the other part each acknowledges
         that, in the course of performing its obligations hereunder, it may
         receive information from the other party which is proprietary to the
         disclosing party and which the disclosing party wishes to protect from
         public disclosure ("Confidential Information"). Each receiving party
         agrees to retain in confidence, during the Royalty Term, and thereafter
         for a period of seven (7) years, all Confidential Information disclosed
         to it by or on behalf of the other party, and that it will not, without
         the written consent of such other party, use Confidential Information
         for any purpose other than the purposes indicated herein. These
         restrictions shall not apply to Confidential Information which: (i) is
         or becomes public knowledge (through no fault of the receiving party);
         (ii) is made lawfully available to the receiving party by an
         independent third party that, to the knowledge of the receiving party,
         is under no duty of confidentiality to the disclosing party; (iii) is
         already in the receiving party's possession at the time of receipt from
         the disclosing party (and such prior possession can be properly
         demonstrated by the receiving party); (iv) is independently developed
         by the receiving party and/or Affiliates (and such independent
         development can be properly demonstrated by the receiving party); or
         (v) is required by law, regulation, rule, act or order of any
         governmental authority or agency to be disclosed by the receiving
         party, provided, however, if reasonably possible, such receiving party
         gives the disclosing party sufficient advance written notice to permit
         it to seek a protective order or other similar order with respect to
         such Confidential Information and, thereafter, the receiving party
         discloses only the minimum Confidential Information required to be
         disclosed in order to comply.

5.2      PharmaBio on the one hand and Pilot on the other hand shall limit
         disclosure of the other party's Confidential Information to only those
         of their respective officers, representatives, agents and employees
         (collectively "Agents") who are directly concerned with the performance
         of this Agreement and have a legitimate need to know such Confidential
         Information in the performance of their duties.

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5.3      All Pilot inventions, processes, know-how, patents, trade secrets,
         copyrights, trade names, trademarks, service marks, marketing
         materials, proprietary materials or other intellectual property of any
         kind, and all improvements to any of the foregoing (collectively,
         "Pilot Property"), disclosed, used, improved, modified or developed in
         connection with the relationship contemplated by this Agreement shall
         remain the sole and exclusive property of Pilot. Except as otherwise
         expressly provided in the Commercialization Agreement, no member of the
         Quintiles Group shall have any right, title or interest in or to any
         Pilot Property.

5.4      Pilot acknowledges that the Quintiles Group possesses certain
         inventions, processes, know-how, trade secrets, improvements, other
         intellectual properties and other assets, including but not limited to
         analytical methods, procedures and techniques, computer technical
         expertise and software, and business practices, including, but not
         limited to the Innovex Territory Management System (ITMS), which have
         been independently developed by the Quintiles Group (collectively
         "Innovex Property"). Any Innovex Property or improvements thereto which
         are disclosed, used, improved, modified or developed by Innovex under
         or during the term of this Agreement shall remain the sole and
         exclusive property of Innovex.

6.0      INDEPENDENT CONTRACTOR RELATIONSHIP.

         For the purposes of this Agreement, Pilot and PharmaBio are independent
         contractors and nothing contained in this Agreement shall be construed
         to place them in the relationship of partners, principal and agent,
         employer and employee or joint venturers. Neither Pilot nor PharmaBio
         shall have the power or right to bind or obligate the other party, nor
         shall either party hold itself out as having such authority.

7.0      TERMINATION.

         Either party may terminate this Agreement for material breach upon
         thirty (30) days written notice specifying the nature of the breach, if
         such breach (i) has not been substantially cured within the thirty (30)
         day period or (ii) is not curable within such 30-day period and the
         breaching party has not commenced and diligently continued during such
         30-day period reasonable actions to cure such breach. During the 30-day
         cure period for termination due to breach, each party will continue to
         perform its obligations under this Agreement. Either party may
         terminate this Agreement immediately upon provision of written notice
         if the other party becomes insolvent or files for bankruptcy or is not
         otherwise able to pay its obligations as they become due and payable.

8.0      INDEMNIFICATION AND LIABILITY LIMITS.

8.1      PharmaBio shall indemnify, defend and hold harmless Pilot, its
         Affiliates and its and their respective directors, officers, employees
         and agents from and against any and all losses, claims, actions,
         damages, liabilities, penalties, costs and expenses (including
         reasonable attorneys' fees and court costs) (collectively, "Losses"),
         resulting from any: (i) breach by PharmaBio (or its employees) of its
         obligations hereunder; (ii) willful

                                       11
<PAGE>

         misconduct or grossly negligent acts or omissions of PharmaBio or its
         employees; and (iii) violation by PharmaBio or its employees of any
         municipal, county, state or federal laws, rules or regulations
         applicable to the performance of PharmaBio's obligations under this
         Agreement; except, in each case, to the extent such Losses are
         determined to have resulted from the negligence or willful misconduct
         of Pilot or its employees.

8.2      Pilot shall indemnify, defend and hold harmless PharmaBio and its
         Affiliates and their respective directors, officers, employees and
         agents from and against any and all Losses resulting from: (i) any
         third party claim arising from the manufacture, storage, packaging,
         production, transportation, distribution, use, sale or other
         disposition of the Product; (ii) breach by Pilot (or its employees) of
         its obligations hereunder; (iii) willful misconduct or grossly
         negligent acts or omissions of Pilot or its employees; and (iv)
         violation by Pilot or its employees of any municipal, county, state or
         federal laws, rules or regulations applicable to the performance of
         Pilot's obligations under this Agreement, except, in each case, to the
         extent such Losses are determined to have resulted from the negligence
         or willful misconduct of PharmaBio or any of its employees.

8.3      In the event of a third party claim or lawsuit, the party seeking
         indemnification hereunder (the "Indemnified Party") shall give the
         party obligated to indemnify (the "Indemnifying Party") prompt written
         notice of any claim or lawsuit (including a copy thereof), provided
         that the failure of an Indemnified Party to notify the Indemnifying
         Party on a timely basis will not relieve the Indemnifying Party of any
         liability that it may have to the Indemnified Party unless the
         Indemnifying Party demonstrates that the defense of such action is
         materially prejudiced by the Indemnified Party's failure to give such
         notice. The Indemnified Party and its employees shall fully cooperate
         with Indemnifying Party and its legal representatives in the
         investigation and defense of any matter the subject of indemnification,
         which defense shall be managed by the Indemnifying Party in a manner,
         including the selection of legal counsel, reasonably acceptable to the
         Indemnified Party. The Indemnified Party shall not unreasonably
         withhold its approval of the settlement of any such claim, liability,
         or action by Indemnifying Party covered by this indemnification
         provision; provided that such settlement does not include an admission
         or acknowledgement of liability or fault of the Indemnified Party.

8.4      Neither PharmaBio nor Pilot, nor any of such party's Affiliates,
         directors, officers, employees, subcontractors or agents shall have,
         under any legal theory (including, but not limited to, contract,
         negligence and tort liability), any liability to any other party hereto
         for any loss of opportunity or goodwill, or any type of special,
         incidental, indirect or consequential damage or loss, in connection
         with or arising out of this Agreement. For the avoidance of doubt, a
         claim by PharmaBio for royalties on Net Sales payable by Pilot
         hereunder shall not be limited in any way pursuant to the provisions
         set forth in the preceding sentence.

9.0      INSURANCE.

                                       12
<PAGE>

         Prior to the SF Commencement Date, Pilot will present Quintiles with a
         form of product liability insurance contract with coverage amounts
         reasonable and customary under the circumstances. Upon request, Pilot
         shall provide Innovex with an original signed certificate of insurance
         evidencing such coverage and showing PharmaBio (or other Quintiles
         Affiliates) as additional insureds under such insurance, within thirty
         (30) days after such request. The certificate must provide that thirty
         (30) days prior written notice of cancellation or material changes in
         insurance coverage will be provided. In any event, Pilot shall maintain
         during all Annual Periods insurance coverage in form and substance and
         with limitation amounts that are reasonable and customary under the
         circumstances.

10.0     NOTICES.

         Any notice required to be given by either party shall be in writing.
         All notices shall be to the parties and addresses listed below, and
         shall be sufficiently given (i) when received, if delivered personally
         or sent by facsimile transmission with confirmed receipt, or (ii) one
         business day after the date mailed or sent by an internationally
         recognized overnight delivery service with charges prepaid.

         If to PharmaBio:     PharmaBio Development Inc.
                              4709 Creekstone Drive
                              Durham, NC  27703
                              Attention:  President
                              Fax: 919-998-2090

         With a copy to:      General Counsel
                              PharmaBio Development Inc.
                              4709 Creekstone Drive
                              Durham, NC  27703
                              Fax: 919-998-2090

         If to Pilot:         Pilot Therapeutics, Inc.
                              101 North Chestnut Street
                              Albert Hall, Winston-Salem, NC 27101
                              Attention:  Chief Executive Officer
                              Fax: 336-725-2221

         With a copy to:      Womble Carlyle Sandridge & Rice, PLLC
                              200 West Second Street
                              Winston-Salem, NC 27101
                              Attn: Peter A. Zorn, Esq.
                              Fax: 336-726-6906

11.0     ASSIGNMENT.

                                       13
<PAGE>

         No party may assign any of its rights or obligations under this
         Agreement to any third party without the written consent of the other
         party, except that Pilot may assign its rights or obligations under
         this Agreement to a bona fide third party that (i) acquires all of
         Pilot's nutraceutical business (a "Permitted Sale") and (ii) assumes
         all of Pilot's rights and obligations under this Agreement. Other than
         pursuant to a Permitted Sale, Pilot may not, without the written
         approval of PharmaBio, assign any of its rights in the Product to a
         third party. Nothing in this Section 11.0 shall preclude the transfer
         of a party's rights and obligations under this Agreement in conjunction
         with a merger in which such party is not the surviving entity.

12.0     GENERAL PROVISIONS.

12.1     This Agreement shall be construed, governed, interpreted, and applied
         in accordance with the laws of the State of North Carolina, without
         giving effect to the principles of conflict of laws.

12.2     The provisions of Articles 1, 2, 5, 8, 10, 12 and 13 shall survive the
         termination of this Agreement for any reason.

12.3     This Agreement contains the entire understandings of the parties with
         respect to the subject matter herein and cancels all previous
         agreements (oral and written), negotiations and discussions dealing
         with the same subject matter. The parties, from time to time during the
         term of this Agreement, may modify any of the provisions hereof only by
         an instrument in writing duly executed by the parties.

12.4     No failure or delay on the part of a party in either exercising or
         enforcing any right under this Agreement will operate as a waiver of,
         or impair, any such right. No single or partial exercise or enforcement
         of any such right will preclude any other or further exercise or
         enforcement thereof or the exercise or enforcement of any other right.
         No waiver of any such right will have effect unless given in a signed
         writing. No waiver of any such right will be deemed a waiver of any
         other right.

12.5     If any part or parts of this Agreement are held to be illegal, void or
         ineffective, the remaining portions of this Agreement shall remain in
         full force and effect. If any of the terms or provisions are in
         conflict with any applicable statute or rule of law, then such term(s)
         or provision(s) shall be deemed inoperative to the extent that they may
         conflict therewith, and shall be deemed to be modified or conformed
         with such statute or rule of law. In the event of any ambiguity
         respecting any term or terms hereof, the parties agree to construe and
         interpret such ambiguity in good faith in such a way as is appropriate
         to ensure its enforceability and viability.

12.6     The headings contained in this Agreement are used only as a matter of
         convenience, and in no way define, limit, construe or describe the
         scope or intent of any section of this Agreement.

12.7     The individuals signing below are authorized and empowered to bind the
         parties to the terms of this Agreement.

                                       14
<PAGE>

13.0     DISPUTE RESOLUTION:

13.1     Internal Review. In the event that a dispute, difference or question
         arises pertaining to any matters which are the subject of this
         Agreement (a "Dispute") and either party so requests in writing, prior
         to the initiation of any formal legal action, the Dispute will be
         submitted to the JMC, which will use its good faith efforts to resolve
         the Dispute within ten (10) days. If the JMC is unable to resolve the
         Dispute in such period, the JMC will refer the Dispute to the Chief
         Executive Officers of Pilot and Quintiles Transnational Corp. For all
         Disputes referred to the Chief Executive Officers, the Chief Executive
         Officers shall use their good faith efforts to resolve the Dispute
         within ten (10) days after such referral.

13.2     Arbitration. If the parties are unable to resolve disputes under 13.1,
         then either party can seek binding arbitration to be conducted in
         accordance with the Commercial Arbitration Rules of the American
         Arbitration Association, sitting in Raleigh, North Carolina, as in
         effect at the time of the arbitration hearing, such arbitration to be
         completed in a sixty (60) day period. The arbitration panel will be
         composed of three arbitrators, one of whom will be chosen by Pilot,
         one by PharmaBio, and the third by the two so chosen. If both or
         either of Pilot or PharmaBio fails to choose an arbitrator or
         arbitrators within fourteen (14) days after receiving notice of
         commencement of arbitration, or if the two arbitrators fail to choose
         a third arbitrator within fourteen (14) days after their appointment,
         the American Arbitration Association shall, upon the request of both
         or either of the parties to the arbitration, appoint the arbitrator or
         arbitrators required to complete the panel. The decision of the
         arbitrators shall be final and binding on the parties, and specific
         performance giving effect to the decision of the arbitrators may be
         ordered by any court of competent jurisdiction.

13.3     Costs. The parties shall bear their own costs in preparing for and
         participating in the resolution of any Dispute, and the costs of
         mediator(s) and arbitrator(s) shall be equally divided between the
         parties.

                  [remainder of page intentionally left blank]

                                       15
<PAGE>

IN WITNESS WHEREOF, this Agreement has been executed by the parties hereto
through their duly authorized officers on the date(s) set forth below.

PHARMABIO DEVELOPMENT, INC.                 PILOT THERAPEUTICS, INC.

By:    /s/Tom Perkins                       By     /s/ Floyd H. Chilton
       -------------------------                   -----------------------

Name:  Tom Perkins                          Name:  Floyd H. Chilton
       -------------------------                   -----------------------

Title: VP & General Counsel                 Title: CEO
       -------------------------                   -----------------------

Attachments:
     Exhibit A--Initial Sales Forecast
     Exhibit B--Commercialization Agreement (filed in a separate exhibit)
     Exhibit C--Loan Agreement (filed in a separate exhibit)

                                       16
<PAGE>

                                    Exhibit A

Annual Period following Funding Date        Net Sales
------------------------------------        ---------

Year 1                                      $38.76 Million
Year 2                                      $49.4 Million
Year 3                                      $64.6 Million
Year 4                                      $115.52 Million
Year 5                                      $148.2 Million
Year 6                                      $148.2 Million
Year 7                                      $148.2 Million<PAGE>

                                                                   Exhibit 10.6

[REDACTED - OMITTED MATERIAL HAS BEEN FILED SEPARATELY WITH THE COMMISSION AND
IS DENOTED HEREIN BY **.]

                           COMMERCIALIZATION AGREEMENT

                                      AMONG

                             PILOT THERAPEUTICS INC.

                                       AND

                                   INNOVEX LP

<PAGE>

                                TABLE OF CONTENTS

                                                                          PAGE

ARTICLE 1  SERVICES OVERVIEW; INNOVEX EXCLUSIVITY............................1

         1.1      Definitions................................................1

         1.2      Overview; Pilot Engagement of Innovex......................1

         1.3      Innovex Exclusive Rights...................................1

         1.4      Retained Rights by Pilot...................................1

ARTICLE 2  COMMITTEES........................................................2

         2.1      Joint Marketing Committee ("JMC")..........................2

         2.1.1    Formation; Purposes and Principles.........................2

         2.1.2    Membership.................................................2

         2.1.3    Meetings...................................................3

         2.2      Agendas and Minutes for the JMC............................3

         2.3      No Authority to Modify Agreement...........................3

ARTICLE 3  MARKETING PLAN; DETERMINATION OF FULLY LOADED COST................4

         3.1      Marketing Plan.............................................4

         3.2      Plan Contents..............................................4

         3.3      Determination of Fully Loaded Cost.........................4

         3.3.1    Baseline for Fully Loaded Cost of Sales Force..............5

ARTICLE 4  INNOVEX RESPONSIBILITIES..........................................5

         4.1      Covenant to Operate under the Agreement; General Diligence
                  Requirement................................................5

         4.2      Marketing Services.........................................5

         4.2.1    Marketing Representative...................................5

         4.3      Hiring Sales Force.........................................5

         4.4      Fully Dedicated or Syndicated Sales Force..................6

         4.5      Training Requirements......................................6

         4.6      Innovex Responsibilities...................................6

         4.7      Records and Reports Regarding Promotional Activities.......7

         4.8      Performance Audits.........................................7

ARTICLE 5  PILOT'S RESPONSIBILITIES AND OBLIGATIONS..........................7

         5.1      Regulatory Affairs.........................................7

         5.2      Minimum Pre-Launch Marketing Commitment....................7

                                       i.

<PAGE>
                               TABLE OF CONTENTS
                                  (CONTINUED)
                                                                          PAGE

         5.3      Minimum Sales  Force Expenditure...........................7

         5.4      Obligation to Provide Samples..............................8

         5.5      Sales and Distribution.....................................8

         5.5.1    Pricing....................................................8

         5.5.2    Booking Sales; Distribution................................8

         5.5.3    Product Returns............................................8

         5.6      PILOT Responsibilites......................................8

ARTICLE 6  TRAINING; ADVERTISING AND PROMOTIONAL MATERIALS...................8

         6.1      Training Programs..........................................8

         6.1.1    Content....................................................8

         6.1.2    Cost.......................................................9

         6.2      Advertising and Promotional Materials......................9

         6.2.1    Creation and Use...........................................9

         6.2.2    Ownership; FDA Approval....................................9

         6.2.3    PILOT Logos................................................9

ARTICLE 7  REGULATORY ISSUES AND COMPLAINTS..................................9

         7.1      Ownership of Regulatory Filings and Compliance.............9

         7.2      Communication with the FDA and Other Regulatory Agencies..10

         7.3      New Developments Relating to Product......................10

         7.4      Product Recalls...........................................10

         7.5      Adverse Event Reporting Procedures........................10

         7.6      Product Inquiries; Complaints.............................10

         7.7      Database of Clinical Trial Data...........................11

ARTICLE 8  ACCOUNTING; INVOICING AND PAYMENT................................11

         8.1      Accounting................................................11

         8.2      Payment Schedule .........................................11

         8.3      Payment of Invoices.......................................11

         8.3.1    Wiring Instructions.......................................11

         8.4      Penalty for Late Payment..................................11

         8.5      Record Keeping and Financial Audits.......................11

                                      ii.
<PAGE>
                               TABLE OF CONTENTS
                                  (CONTINUED)
                                                                          PAGE

ARTICLE 9  REPRESENTATIVES AND COVENANTS ...................................12

         9.1      Mutual Authority..........................................12

         9.1.1    Corporate Power...........................................12

         9.1.2    Due Authorization.........................................12

         9.1.3    Binding Agreement.........................................12

         9.1.4    Grant of Rights; Maintenance of Agreements................12

         9.1.5    Validity..................................................13

         9.2      Conformance with Laws.....................................13

         9.3      Rights in Product.........................................13

         9.4      Record Maintenance........................................13

         9.5      Firewall..................................................14

         9.6      No Use of Names or Trademarks.............................14

         9.7      NDA Filing................................................14

         9.8      Independent Contractor....................................14

ARTICLE 10  CONFIDENTIALITY.................................................14

         10.1     Confidential Information..................................14

         10.2     Ownership of Data; No License.............................14

         10.3     Survival................................................. 15

ARTICLE 11  INDEMNIFICATION.................................................15

         11.1     Indemnification by PILOT..................................15

         11.2     Indemnification by Innovex................................15

         11.3     Procedure.................................................15

         11.4     No Consequential Damages..................................16

         11.5     PILOT Responsibility for Product Description..............16

         11.6     Insurance.................................................16

ARTICLE 12  TERM AND TERMINATION............................................16

         12.1     Term......................................................16

         12.2     Renewal...................................................16

         12.3     Material Breach...........................................16

         12.4     No Product Launch.........................................17

                                      iii.
<PAGE>
                               TABLE OF CONTENTS
                                  (CONTINUED)
                                                                          PAGE

         12.5     Bankruptcy................................................17

         12.6     Accrued Rights ...........................................17

         12.7     Right to Receive Data.....................................18

         12.8     Survival..................................................18

ARTICLE 13  SALES FORCE CONVERSION..........................................18

         13.1     Right to Convert Sales Force..............................18

         13.2     Transition Plan...........................................18

         13.3     PILOT Determination.......................................18

         13.4     Proprietary Information...................................18

ARTICLE 14  DISPUTE RESOLUTION..............................................19

         14.1     Disputes..................................................19

         14.2     Governing Law.............................................19

ARTICLE 15  MISCELLANEOUS...................................................19

         15.1     Return of Materials.......................................19

         15.2     Nonsolicitation of Employees..............................19

         15.3     Entire Agreement; Amendment...............................20

         15.4     Force Majeure.............................................20

         15.5     Notices...................................................20

         15.6     Consents Not Unreasonably Withheld or Delayed.............21

         15.7     Maintenance of Records....................................21

         15.8     United States Dollars.....................................21

         15.9     No Strict Construction....................................21

         15.10    Assignment................................................21

         15.11    Performance by Affiliates.................................22

         15.12    Counterparts..............................................22

         15.13    Further Actions...........................................22

         15.14    Severability..............................................22

         15.15    Ambiguities...............................................22

         15.16    Headings..................................................22

         15.18    No waiver.................................................22

                                      iv.

<PAGE>
                                TABLE OF CONTENTS
                                   (CONTINUED)
                                                                            PAGE

EXHIBIT A
         DEFINITIONS.........................................................A-1

EXHIBIT B
         MARKETING PLAN OUTLINE..............................................B-1

EXHIBIT C
         COST ALLOCATION FOR POST-APPROVAL MARKETING ACTIVITIES..............C-1

SCHEDULE I
         INNOVEX RESPONSIBILITIES...........................................SI-1

SCHEDULE II
         PILOT RESPONSIBILITIES & OBLIGATIONS, PILOT SALES PROJECT.........SII-1

SCHEDULE III
         ROLE DEFINITIONS.................................................SIII-1

                                       v.
<PAGE>

                           COMMERCIALIZATION AGREEMENT

         THIS COMMERCIALIZATION AGREEMENT (the "Agreement") is made effective as
of the ___ day of June, 2001 (the "Effective Date") by and between PILOT
THERAPEUTICS, INC., a corporation organized and existing under the laws of North
Carolina, having its principal place of business at 101 North Chestnut Street,
Albert Hall, Winston-Salem, NC 27101 ("Pilot"), and INNOVEX LP, a New Jersey
limited partnership with its principal place of business at 10 Waterview
Boulevard, Parsippany, NJ 07054 ("Innovex"), each on behalf of itself and its
Affiliates. Pilot and Innovex are sometimes referred to herein individually as a
"Party" and collectively as the "Parties."

         In consideration of the following covenants, promises and obligations,
Pilot and Innovex agree as follows.

                                   ARTICLE 1

                     SERVICES OVERVIEW; INNOVEX EXCLUSIVITY

         1.1 DEFINITIONS. Capitalized terms used but not defined in the text of
this Agreement shall have the meanings ascribed to them on Exhibit A hereto.

         1.2 OVERVIEW; PILOT ENGAGEMENT OF INNOVEX. Pursuant to this Agreement,
the Parties will collaborate to develop and sustain a market for and promote the
Product (as defined in Exhibit A) in the Territory for all indications. Pilot
shall engage Innovex and/or Innovex Affiliates to provide certain pre- and
post-launch marketing activities ("Marketing Services") and the recruitment,
deployment and management of a dedicated sales force ("Sales Force Services"
and, together with any Marketing Services, "Services") for the Product, all as
provided herein. In recognition of the various undertakings provided to Pilot
herein, Pilot shall pay Innovex (or the Innovex Affiliate as the case may be)
the compensation as set forth herein. While the Parties have allocated their
respective responsibilities under this Agreement, the Parties intend this
program to be broadly collaborative, and seek to achieve consensus-based
decision making to the extent practical, with the common objective of maximizing
the short-term and long-term commercial success of the Product in the Territory,
subject to the terms and conditions of this Agreement.

         1.3 INNOVEX EXCLUSIVE RIGHTS. During the Term, Innovex (either itself
or through an Affiliate) shall have the exclusive right to provide Sales Force
Services for the Product in the Territory. If Pilot engages Innovex to perform
Marketing Services hereunder, both pre- and post-launch, advertising and
promotional activities related to the Product in the Territory will be
integrated with field sales activities through the Marketing Plan in accordance
with this Agreement. Innovex shall not have any rights with respect to the
Product outside of the Territory.

         1.4 RETAINED RIGHTS BY PILOT. Except as otherwise expressly provided in
Section 1.3, Pilot shall retain all right, title and interest in and to the
Product including, but not limited to, owning all clinical trial data and
designs, protocols, regulatory filings for the Product and data in support
thereof, the Marketing Plan (except that Innovex retains the right to use any
Innovex proprietary materials or information contained therein), and all
manufacturing, distribution of finished products to designated third party
distributor, patent, copyright, trade secret and trademark rights relating to

                                       1.
<PAGE>

the Product. No license is granted to Innovex hereunder, either directly or by
implication. Innovex acknowledges that any study sponsored by or under the
direction of Pilot is a proprietary program of Pilot, containing trademarks,
trade secrets and other intellectual property of Pilot, whether or not such
rights are utilized in the marketing, promotion or sale of the Product.

                                   ARTICLE 2

                                   COMMITTEES

         2.1 JOINT MARKETING COMMITTEE ("JMC").

                  2.1.1 FORMATION; PURPOSES AND PRINCIPLES. The JMC, subject to
Pilot's tie-breaking vote, shall have overall responsibility for the success of
the matters related to the Product in the Territory as established by this
Agreement, including without limitation: (i) to review and approve the pre- and
post-launch Marketing Plan as well as any other matters required for the sales
and promotion of the Product in the Territory, except to the extent that certain
matters are solely the responsibility of a single Party under this Agreement;
(ii) to determine the overall strategy for marketing, promotion and sales of the
Product in the Territory; (iii) to advise, provide input and determine strategy
for future clinical and/or marketing studies; (iv) to plan and coordinate the
Parties' activities hereunder related to sales and marketing of the Product in
the Territory; (v) to adopt and approve plans and budgets for the services under
this Agreement, including the Marketing Plan, consistent with the maximization
of short-term and long-term profits derived from the sale of the Product in the
Territory and any other activities related to sales and marketing of the Product
in the Territory that the JMC deems appropriate to achieve the Parties'
objectives under this Agreement; (vi) to request the creation of sales, pricing,
and financial reports pertaining to pre- and post-launch Marketing Services and
other marketing activities that may be provided by third parties, and to review
such reports in preparation for making recommendations; (vii) facilitate the
flow of information among the Parties, including coordinating sales activity
with manufacturing schedules and distribution; and (viii) to resolve disputes of
the Parties, subject to Article 14. Without limiting the generality of the
foregoing provisions, all (a) territory alignment, mapping and optimization
services proposed to be provided by Innovex hereunder and (b) regional or
district meetings of all or any portion of the Sales Force proposed to be called
or held by Innovex hereunder, including the locations and budgets therefor, must
be approved in advance by the JMC.

                  2.1.2 MEMBERSHIP. The JMC will be comprised of an equal number
of Pilot and Innovex representatives, not exceeding four representatives of each
Party unless otherwise mutually agreed. The JMC shall be chaired by a
representative of Pilot. Pilot will have the tie-breaking vote on all JMC
decisions (but, for the avoidance of doubt, Pilot shall not be entitled to use
such tie-breaking vote to unilaterally amend the Agreement or to establish (i)
the "Pre-Launch Sales Forecast," (ii) the sales force size, or (iii) the budget
for "Sales and Marketing Expenses" and the resulting "Commitment Amount" (all
such terms are as defined in the Investment Agreement). To the extent the JMC is
not unanimous with respect to any of the matters set forth in clauses (i-iii)
above, the process outlined in Section 3.3 of the Investment Agreement shall be
followed. Either Party may appoint, substitute or replace members of the JMC to
serve as their representatives upon notice to the other Party. The Parties shall
appoint the initial members of the JMC within twenty (20) days after the
Effective Date.

                                       2.
<PAGE>

                  2.1.3 MEETINGS. The JMC shall meet in person, by video or by
teleconference (as mutually agreed by the Parties from time to time) on a
quarterly basis or more frequently as may be agreed upon, to exercise its
responsibilities as set forth in Section 2.1.1 of this Agreement, and to review
the progress of the Parties in performing the functions and obligations under
this Agreement. All reasonable labor, travel and related costs actually incurred
by Innovex representatives to attend JMC meetings will be reimbursed by Pilot in
accordance with budgets to be approved by the JMC or otherwise approved by
Pilot. Location of meetings shall be determined by Pilot and shall be at Pilot
headquarters in Winston-Salem or Innovex headquarters in New Jersey, or at such
other locations as may be mutually agreed by the Parties. In order for a meeting
of the JMC to be convened, such meeting must include at least one (1) committee
member of each Party and, provided this condition is met, any action agreed upon
by all JMC members present at such meeting shall be deemed to be duly and
validly taken by the JMC and shall have the same force and effect as if taken
unanimously by the entire JMC.

         2.2 AGENDAS AND MINUTES FOR THE JMC. Unless otherwise decided by the
JMC, each Party will use reasonable efforts to disclose to the chair all
proposed agenda items along with appropriate background or supporting
information at least twenty (20) working days in advance of a JMC meeting. The
chair use reasonable efforts to will present an agenda with appropriate
background or supporting information at least ten (10) working days in advance
of a JMC meeting. At each meeting of the JMC, the JMC shall select a secretary
who will prepare, within five (5) working days after each meeting (whether held
in person, by video or by telecommunication), the minutes reporting in
reasonable detail the actions taken or to be taken by the JMC, or its designees,
the attendees, the status of goals and achievements as well as issues requiring
resolution, and resolutions of previously reported issues, which minutes shall
be signed by one of the JMC representatives from each of the Parties.

         2.3 NO AUTHORITY TO MODIFY AGREEMENT. The JMC shall have no authority
to amend or waive compliance with the terms and conditions of this Agreement, or
to approve actions of the Parties which are inconsistent with this Agreement.
Any such amendments and waivers or actions shall be implemented by means of
Section 15.3.

                                   ARTICLE 3

               MARKETING PLAN; DETERMINATION OF FULLY LOADED COST

         3.1 MARKETING PLAN. The principal mechanism by which the Parties
coordinate their sales and marketing activities will be a Marketing Plan, to be
prepared and periodically updated as set forth below. Within two (2) months
after the Effective Date, the JMC shall approve the Marketing Plan. A draft
Marketing Plan shall be prepared by members of the JMC or its designees, and
submitted to the JMC for approval. The initial Marketing Plan will cover the
remainder of calendar year 2001 through the first year following Product Launch.
Periodically thereafter, but no less frequently than annually (according to a
schedule to be established by the JMC), the JMC shall be responsible for causing
the preparation or updating, and approving, the Marketing Plan. Each Marketing
Plan shall include at least a two (2) year projection of Product plans and
budgets.

         3.2 PLAN CONTENTS. Each Marketing Plan shall include a review of the
marketplace, marketing objectives, strategies, and supporting tactics (with
respective costs, timing, and

                                       3.
<PAGE>

responsibilities), clinical support plans, marketing study plans for future
clinical and/or marketing studies, Sales Force effort, pricing, inventory
requirements and distribution plans for the Product, together with sales,
revenue and expense forecasts for Product sales in the Territory. The content of
the Marketing Plan shall be determined by the JMC, but shall generally be in a
form consistent with the outline attached hereto as Exhibit B, and shall include
among other items the overall level of anticipated field sales resource
commitments.

         3.3 FULLY LOADED COST; WORK ORDERS. Innovex Marketing Services and
Sales Force Services under this Agreement shall be payable by Pilot on the basis
of the "Fully Loaded Cost" of such activities, except that, notwithstanding
anything in this Section 3.3 or elsewhere in this Agreement to the contrary, the
Fully Loaded Cost for Sales Force Services (and the maximum amounts payable
hereunder for such Sales Force Services by Pilot) shall be as set forth in
Section 3.3.1). Fully Loaded Cost means the usual and customary fee charged by
Innovex (or the Innovex Affiliate, as the case may be) to Third Parties under a
fee for service arrangement for the type of services rendered by it pursuant to
this Agreement (such fee to be based on services of comparable volume and
comparable quality), inclusive of the service provider's customary profit margin
for such volume and quality of service. Fully Loaded Cost shall be adjusted on
an annual basis for increases caused by cost of living increases, merit salary
increases and similar financial adjustments necessary to maintain continuity of
the personnel and resource commitments. Prior to Innovex providing any Services
hereunder, the Parties shall execute a Work Order setting forth the Services to
be provided. The Parties shall update such Work Order as needed to reflect
changes in the Services being provided and/or changes in the usual and customary
fees charged by Innovex and Innovex Affiliates. The Parties shall agree in
advance on any new or revised type or volume of services, or changes to the
pricing of such services, by executing an appropriate Change Order.

                  3.3.1 INITIAL SALES FORCE; DETERMINATION OF FULLY LOADED COST.
Conditional upon the prior written approval of the JMC, (i) Innovex will provide
to Pilot the Sales Force beginning in January 2002 (the anticipated Sales Force
Commencement Date) and continuing for 5 years and (ii) the Sales Force will
consist initially of ** Sales Representatives and reasonable and necessary
management and administrative support (including 5 Field Managers). The Fully
Loaded Costs shall be $** annually for each Sales Representative and
$ ** annually for each Field Manager, based upon the Sales Force Services to
be provided as set forth on Exhibit C. These Fully Loaded Costs shall be
increased annually (on each anniversary of the Sales Force Commencement Date) by
4% or by a percentage increase equal to the percentage increase in the Consumer
Price Index (all products) during the most recently completed calendar year, and
otherwise only as a result of a change in the scope of the Sales Force Services
from that set forth on Exhibit C or the size of the Sales Force or a significant
and material delay in the Sales Force Commencement Date. The JMC may advance or
delay the Sales Force Commencement Date or change the size of the Sales Force as
necessary. In the event a Syndicated Sales Force is recommended by the JMC,
pursuant to Section 4.4 of this Agreement, the Fully Loaded Cost shall be
determined by Innovex (not to exceed the amounts set forth above, as adjusted as
set forth above), and Pilot shall be responsible for the entirety of such Fully
Loaded Cost, except for such portions of the Fully Loaded Cost as may be
contractually undertaken by one or more third parties with the consent of
Innovex, which consent shall not be unreasonably withheld.

                                       4.
<PAGE>

                                   ARTICLE 4

                            INNOVEX RESPONSIBILITIES

         4.1 COVENANT TO OPERATE UNDER THE AGREEMENT; GENERAL DILIGENCE
REQUIREMENT. Innovex shall use commercially reasonable efforts to market and
sell the Product in the Territory in accordance with the Marketing Plan, the
Promotional Materials, this Agreement and all applicable laws, rules and
regulations. Except as expressly set forth in this Agreement, the criteria for
Innovex performance shall be consistent with the usual and customary industry
standards for sales and marketing projects of similar size and scope and shall
be according to performance metrics to be established by mutual agreement of the
Parties prior to creation of the Sales Force and monitored by the JMC.

         4.2 MARKETING SERVICES. In accordance with the criteria established in
Section 4.0 of the Investment Agreement, Innovex (and its Affiliates within the
Quintiles Commercialization Group, North America) will be given the first and
preferred opportunity to negotiate with Pilot to provide marketing services
outlined in the Marketing Plan. Pilot shall have the final authority in regard
to selection of Innovex or a third party to provide marketing services (provided
that any such marketing services provided by Innovex shall be "Marketing
Services" hereunder). Innovex shall provide certain pre- and post-launch
marketing services on a fee-for-service basis, charging the Fully Loaded Cost,
in accordance with the Marketing Plan approved by the JMC. Pre- and post-launch
Marketing Services shall include the Fully Loaded Cost for Innovex to provide a
Marketing Representative, as defined herein. Pilot may not retain any third
party to provide marketing services unless Pilot has received a proposal for
such marketing services from Innovex or an Innovex Affiliate (or written notice
from Innovex that Innovex will not provide such marketing services); provided,
that this condition is expressly subject to Innovex's obligation to provide such
proposal as soon as practicable after receiving notice that Pilot desires such
marketing services (but, in any event, within a reasonable and customary period
after receiving such notice). Subject to the foregoing, prior to Pilot retaining
any third party to provide marketing services, Pilot shall present to Innovex
the proposed specifications to be assigned to and prices to be charged by the
third party and Innovex or the relevant Innovex Affiliate shall be given a
reasonable opportunity to revise its proposal. So long as the pricing
(including, without limitation, the timing of expected payments from Pilot) and
capabilities (including, without limitation, the ability to meet Pilot's
timeline) of Innovex or the relevant Innovex Affiliate are competitive to those
of the proposed third party, as determined by Pilot in its reasonable
discretion, then Innovex or the Innovex Affiliate shall be awarded the business.

                  4.2.1 MARKETING REPRESENTATIVE. An initial activity of the JMC
will be the approval of an Innovex employee as the primary marketing
representative for the Product (the "Marketing Representative") to coordinate
and/or commence Marketing Services and other marketing activities, including
participation with and supporting the JMC members in the design of the pre- and
post-launch Marketing Plan. Innovex will recommend for Pilot's approval a
qualified employee for this role, who shall be assigned full-time, unless
otherwise agreed by the JMC. The Marketing Representative shall aggressively
drive marketing and related pre- and post-launch recommendations. As
appropriate, the Marketing Representative will recommend to the JMC when
additional resources are needed, on a dedicated or non-dedicated basis, to
optimize marketing results. As a component of pre-launch marketing activities,
the Marketing Representative will

                                       5.
<PAGE>

recommend to the JMC solutions on a variety of ancillary relationships,
including, but not limited to distribution relationships. Within 12-18 months
following Product Launch (as determined by Pilot), the Marketing Representative
position will be held by an employee of Pilot, either by Pilot hiring the
Innovex employee that then holds the Marketing Representative position, or by
hiring a new Pilot employee to be approved by the JMC.

         4.3 HIRING SALES FORCE. Innovex shall hire, train and maintain the
Sales Force for promotion of the Product in the Territory on the terms and
conditions of this Agreement, which shall be completed at least one (1) month in
advance of the date of the expected Launch (as communicated by the JMC to
Innovex in writing at least four (4) months in advance of the expected Launch).
The hiring standards for the members of the Sales Force shall be established by
the JMC. The Innovex Sales Force(s) size will be determined by the JMC from time
to time.

         4.4 FULLY DEDICATED OR SYNDICATED SALES FORCE. During the Term, the
only activity of the Sales Force shall be the marketing and promotion of the
Product in the Territory, unless otherwise approved in advance by the JMC. The
Sales Force shall be composed of full-time employees of Innovex. The JMC may
recommend using the P2 and/or P3 positions to promote non-conflicting compounds
or devices, subject to Pilot consent, which consent shall not be unreasonably
withheld; provided, that Pilot shall have the first option to place Pilot's
non-conflicting products, or non-conflicting products Pilot identifies or
acquires, in the P2 and P3 positions as the positions may become available
during the Term (as defined in Section 12.1). In the event Pilot exercises its
right to use the P2 and/or P3 positions, the cost charged to Pilot for such
positions shall be not more than the Fully Loaded Cost (determined pursuant to
Sections 3.3 and 3.3.1), subject to a reasonable discount to the extent the
product in either or both of such positions is complementary to the Product as
determined in the good faith discretion of the JMC, or as otherwise agreed by
Innovex and Pilot.

         4.5 TRAINING REQUIREMENTS. Innovex shall train all Innovex Personnel in
accordance with Article 6 hereof.

         4.6 INNOVEX RESPONSIBILITIES. Without limitation a partial list of
responsibilities of Innovex in providing Sales Force Services are set forth on
Schedule I to this Agreement.

         4.7 RECORDS AND REPORTS REGARDING PROMOTIONAL ACTIVITIES. Innovex shall
promptly provide to Pilot such information regarding ongoing sales and marketing
activities as relate to the plans and budgets hereunder as Pilot may reasonably
request and which are reasonably available to Innovex. Additionally, Innovex
will keep complete and accurate records of all presentations made by the Sales
Force in accordance with Innovex's customary call reporting procedures
(including names of physicians, dates of presentation and general response to
such presentations) as well as other activities carried out pursuant to the
Marketing Plan. Innovex will make all such records available to Pilot during
regular business hours and upon reasonable notice, and will, within fifteen (15)
days of the end of each month, provide Pilot a monthly report on sales force
activity. Innovex will maintain such records for three (3) years following the
period to which they relate. The record-keeping and access requirements of this
Section 4.7 shall survive the termination of this Agreement for a two (2) year
period.

         4.8 PERFORMANCE AUDITS. Pilot shall have the right to audit Innovex's
performance of obligations as set forth in this Article 4, including other
provisions as described in the Schedules

                                       6.
<PAGE>

attached hereto (generally describing the activities of the Parties) for the
purpose of evaluating and monitoring conformance with the terms and conditions
of this Agreement. Such audits shall occur during regular business hours and
upon reasonable notice, shall not interfere with Innovex activities, and shall
be conducted at Pilot's sole expense. In the event an outside auditor is hired
to conduct an audit pursuant to this Section 4.8, such auditor shall be
reasonably acceptable to Innovex and expressly subject to the same
confidentiality provisions as apply to the Parties hereunder.

                                   ARTICLE 5

                    PILOT'S RESPONSIBILITIES AND OBLIGATIONS

         5.1 REGULATORY AFFAIRS. Pilot shall have the responsibilities for
regulatory affairs set forth in Article 7, and shall keep the JMC informed
generally on the status and conduct of all clinical development activities
related to the Product in the Territory. Pilot shall inform Innovex of its
estimated date of Product Launch, and in particular shall provide such date for
purposes of Innovex's establishment of the Sales Force under Section 4.3.

         5.2 MINIMUM PRE-LAUNCH MARKETING SERVICES COMMITMENT. USE OF LOAN
PROCEEDS. Pilot shall spend a minimum of $1,200,000 on pre-launch marketing
activities (whether through Innovex or otherwise), or such lesser amount as may
be approved unanimously by the JMC. For the avoidance of doubt, the fees and
expenses for such pre-launch marketing activities may be paid by Pilot through
advances under its loan from PharmaBio.

         5.3 MINIMUM SALES FORCE EXPENDITURE. Pilot shall be responsible for
purchasing and maintaining Sales Force Services from Innovex and Innovex
Affiliates in an amount equal to the "Minimum Sales Force Level," as defined in
the Investment Agreement; provided that the sole remedy for Pilot's failure to
maintain the Minimum Sales Force Level shall be as provided in the Investment
Agreement.

         5.4 OBLIGATION TO PROVIDE SAMPLES. Pilot will provide to Innovex for
distribution the quantity and configuration of Samples as determined appropriate
by the JMC to support the Sales Force Services, consistent with the Marketing
Plan and forecasts.

         5.5 SALES AND DISTRIBUTION.

                  5.5.1 PRICING. Pilot, with the advice of the JMC, shall set
         all prices and commercial terms for the sale of the Product in the
         Territory.

                  5.5.2 BOOKING SALES; DISTRIBUTION. Pilot shall be responsible
         for booking sales, fulfilling orders, and shall warehouse and
         distribute the Product and perform all related services.

                  5.5.3 PRODUCT RETURNS. Pilot shall be responsible for handling
         Product returns. The Innovex Sales Force shall provide assistance as
         reasonably requested by Pilot, to the extent consistent with the normal
         activities of pharmaceutical sales personnel. Product returns shall

                                       7.
<PAGE>

         promptly be shipped to the facility responsible for shipment of such
         Product lot or such other location as may be designated by Pilot in
         writing.

         5.6 ADDITIONAL PILOT RESPONSIBILITIES. Without limitation, a partial
list of Pilot responsibilities are set forth on Schedule II attached to this
Agreement.

                                   ARTICLE 6

                 TRAINING; ADVERTISING AND PROMOTIONAL MATERIALS

         6.1 TRAINING PROGRAMS.

                  6.1.1 CONTENT. Innovex will develop, subject to JMC approval
(not to be unreasonably withheld), initial and ongoing training programs for the
Sales Force during the Term. Each member of the Sales Force shall be required to
successfully complete such training program before providing services under this
Agreement. The Parties shall mutually agree to a minimum training standard and
pass rate, to be monitored by the JMC. Innovex shall maintain records of such
training for each individual. Innovex agrees to utilize such training programs
on an ongoing basis. Initial training shall be carried out at a time which is
set by the JMC and which is prior to but reasonably near the date on which
Product Launch is expected. As additional Sales Representatives are added under
this Agreement, training will be given to groups of the newly selected Sales
Representatives. In addition to Product and selling skills training, training
programs shall include requirements of the Food, Drug and Cosmetic Act,
Medicare/Medicaid Anti-Fraud and Abuse Act, and other applicable laws, rules,
regulations and policies.

                  6.1.2 COST. The cost of developing and delivering the training
to the Sales Force shall be borne by Pilot. Innovex will charge Pilot its fully
loaded cost for training services.

         6.2 ADVERTISING AND PROMOTIONAL MATERIALS.

                  6.2.1 CREATION AND USE. Pilot shall be responsible for the
         development of all Promotional Materials. Such materials shall be
         consistent with the Marketing Plan and budgets approved by the JMC. The
         Innovex Sales Force shall disseminate only Promotional Materials
         provided by Pilot, for use by the Sales Force. Pilot may engage Innovex
         or Innovex Affiliates to assist with the development and creation of
         Promotional Materials.

                  6.2.2 OWNERSHIP; FDA APPROVAL. Pilot shall own all rights to,
         and title and interest in, the Promotional Material. The final content
         of all Promotional Materials and Product-related training materials
         shall be the legal responsibility of Pilot, including, but not limited
         to, FDA approval thereof if such approval is required.

                  6.2.3 PILOT LOGOS. All written or visual materials related to
         the Product shall display the Pilot logos and Pilot shall be presented
         as the sole owner of the Product, except as required by law.

                                       8.
<PAGE>

                                   ARTICLE 7

                        REGULATORY ISSUES AND COMPLAINTS

         7.1 OWNERSHIP OF REGULATORY FILINGS AND COMPLIANCE. Pilot will retain
exclusive right, ownership, authority and responsibility for regulatory filings,
compliance with all regulatory requirements and maintenance of all government
agency contacts relating to the Product; the reporting of any adverse drug
reactions to the FDA (to the extent applicable and required by law or
regulation); the filing of Promotional Materials with the FDA (to the extent
applicable and required by law or regulation); the payment of Medicaid and other
governmental rebates which in Pilot's sole judgment are due and owing; the
pricing of the Product for each customer; and compliance with Medicaid best
price law and the Department of Veterans Affairs Act. The development of each
indication and formulation of the Product shall be determined solely by Pilot.

         7.2 COMMUNICATION WITH THE FDA AND OTHER REGULATORY AGENCIES. Except as
required by law, Innovex shall not communicate with the Food & Drug
Administration, Office of Inspector General, Health Care Financing
Administration or any state agencies ("Regulatory Agencies") about anything
relating to the Product, except through, or with the consent of Pilot. If
Innovex is required by law to communicate directly with any Regulatory Agency or
if Innovex receives any communication from a Regulatory Agency with respect to
the Product, promotion of the Product, Innovex's performance under this
Agreement or any matter or that could affect Innovex's performance under this
Agreement, Innovex shall promptly notify Pilot. Innovex shall reasonably
cooperate at Pilot's expense with Pilot in all proper respects in all regulatory
matters relating to the Product, including but not limited to preparation for
inspections of Pilot facilities and/or Innovex facilities; provided, however,
that (i) Pilot's obligation to pay any expenses associated with the preparation
or maintenance of Innovex facilities for inspection shall be (i) limited to the
amount of such expenses as are incrementally attributable to an inspection made
by a Regulatory Agency in respect of the Product and (ii) notwithstanding
anything in this Section 7.2 the contrary, Pilot shall have no obligation to pay
any expenses associated with the preparation or maintenance of Innovex
facilities for inspection to the extent the applicable Innovex facilities have
not been maintained in a commercially reasonable manner or at standards
customary in Innovex's industry and, in such event, Innovex shall continue to
have its obligations set forth above. Innovex will provide Pilot with pertinent
records in Innovex's possession (or that can be obtained by Innovex without
unreasonable expense or effort) which may be necessary to implement any recall
or any other corrective action mandated by a Regulatory Agency or implemented by
Pilot, including but not limited to names and addresses for "Dear Doctor"
letters.

         7.3 NEW DEVELOPMENTS RELATING TO THE PRODUCT. Pilot will promptly
inform Innovex of the following information relating to the Product in the
Territory: (i) new approved indications; (ii) new approved dosages or
administration regimens; (iii) material new studies by the scientific community
that Pilot becomes aware of which relate to the Product or a competitive product
in its therapeutic class; and (iv) any changes in regulations that Pilot
becomes, or should have become, aware of that affect the Product or Pilot's
obligations with respect to this Agreement. Innovex will promptly inform Pilot
of information relating to changes in regulations that Innovex becomes, or
should have become, aware of that affect Innovex's obligations with respect to
this Agreement. Based on such information, and subject to any federal, state or
local laws and/or regulations, the Parties shall use commercially diligent
efforts to maintain the training materials and Promotional

                                       9.
<PAGE>

Materials supplied to the Sales Force pursuant to this Agreement current with
such new developments or information.

         7.4 PRODUCT RECALLS. If either Party believes that a recall of any
Product in the Territory is necessary, such Party shall notify the other Party
promptly. Pilot shall retain sole authority and responsibility for determining
whether a Product recall shall occur. Any Product recall shall occur under the
direction and control of Pilot, and Innovex shall reasonably cooperate in
carrying out any such recall, at Pilot's expense. Pilot shall make available, at
Innovex's request, any records that Innovex might reasonably require to Pilot in
effecting any recall of the Product.

         7.5 ADVERSE EVENT REPORTING PROCEDURES. Pilot shall be responsible for
reporting to any governmental agency of adverse events and drug safety issues
related to the use of the Product of which Pilot becomes aware, to the extent
required by law or regulation. Pilot shall advise Innovex of its standard
procedures for the reporting of adverse events, and the Innovex Sales Force
shall comply with such procedures. The Pilot procedures for the reporting of
adverse events shall be included in the training program for the Innovex Sales
Force. Innovex shall report to Pilot within twenty-four (24) hours any adverse
events of which Innovex becomes aware.

         7.6 PRODUCT INQUIRIES; COMPLAINTS. Innovex shall promptly notify Pilot
of any complaint, inquiry or (in compliance with Section 7.5) adverse event
relating to the Product in report form providing reasonable detail of such
complaint, event or inquiry. Pilot shall maintain a unified record of all
complaints it receives. Pilot shall be responsible for medical affairs services
and shall respond to inquiries from physicians and health care providers. Pilot
shall advise Innovex of its procedures for handling such inquiries and the
Innovex Sales Force shall be trained by Innovex on such procedures.

         7.7 DATABASE OF CLINICAL TRIAL DATA. Pilot shall own and maintain its
own database of clinical trial data accumulated from all clinical trials of the
Product and Pilot shall own and maintain a unified database of complaints and
adverse drug event information for the Product and shall develop and utilize
uniform report forms.

                                   ARTICLE 8

                        ACCOUNTING; INVOICING AND PAYMENT

         8.1 ACCOUNTING. Each Party agrees to calculate all costs and expenses
hereunder using its standard accounting procedures, in accordance with
accounting principles generally accepted in the United States, consistently
applied, to the maximum extent practicable.

         8.2 PAYMENT SCHEDULE. Except to the extent any Work Order for Services
includes an advance payment requirement at the time of project startup, not to
exceed 20% of the amount for Sales Force Services or 50% of the amount to be
charged for Marketing Services (subject to Innovex's obligations pursuant to
Section 4.2 with respect to competitiveness) for the one-year period commencing
with acceptance of such Work Order, Innovex will invoice Pilot monthly for
Innovex's actual Fees and Pass-Through Expenses for the preceding calendar month
(each an "Invoice"). Upon termination or expiration of the Services, any fees or
pass-through expenses incurred prior to such termination will be invoiced to
Pilot.

                                      10.
<PAGE>

         8.3 PAYMENT OF INVOICES. All invoices are strictly net of any taxes
imposed on services, and except as otherwise set forth in this Agreement,
payment in full is due within 10 days of the date Pilot receives the
corresponding funding from PharmaBio in accordance with the Investment
Agreement, except that, to the extent any particular Invoice does not include
any Services for which PharmaBio has a funding obligation under the Investment
Agreement, payment shall be due within 30 days after receipt by Pilot of the
Invoice. All payments shall be made by wire transfer, or otherwise pursuant to
the reasonable written direction of Innovex.

                  8.3.1 If the method of payment is by direct transfer to the
Innovex bank account, the wire transfer instructions are as follows:

                  Innovex LP
                  Accounting Number:                 511-4454518
                  ABA Number:                        053 101 121
                  Branch Banking & Trust Co., Raleigh, NC

                  Innovex's Federal Employment ID Number is 22-3760578.

         8.4 PENALTY FOR LATE PAYMENT. Pilot and Innovex agree that unless there
is a bona fide dispute as to amounts payable hereunder, if payment is not made
within 30 days of the due date of the invoice, interest shall accrue on a daily
basis at the lesser of two percent (2%) above the Prime Rate as announced
periodically by First Union National Bank (or its successor) or the maximum rate
permitted by law on any amount overdue from the date payment became due until
payment is made in full. In any event, such interest penalty shall only be
assessed for undisputed and unpaid amounts.

         8.5 RECORD-KEEPING AND FINANCIAL AUDITS. Upon the written request (and
expense) of Pilot, Innovex, but not more than once in each calendar year, shall
permit an independent certified public accountant appointed by Pilot and
reasonably acceptable to Innovex, accompanied by representatives of the
financial department of Pilot, if any, at reasonable times and upon reasonable
notice, to examine only those records as may be necessary to determine
compliance with this Agreement. Pilot shall bear the full cost of the
performance of any such audit, unless such audit discloses a variance of more
than ten percent (10%) from the amount of the original report, royalty or
payment calculation. In such case, Innovex shall bear the full cost of the
performance of such audit. Auditors shall be expressly subject to the same
confidentiality obligations as the Parties are to each other hereunder. This
Section 8.5 shall survive for two (2) years after the termination of this
Agreement.

                                   ARTICLE 9

                          REPRESENTATIONS AND COVENANTS

         9.1 MUTUAL AUTHORITY. Each Party represents and warrants to the other
that:

                  9.1.1 CORPORATE POWER. It is duly organized and validly
existing under the laws of its state or country of incorporation, and has full
corporate power and authority to enter into this Agreement and to carry out the
provisions hereof.

                                      11.
<PAGE>

                  9.1.2 DUE AUTHORIZATION. It is duly authorized to execute and
deliver this Agreement and to perform its obligations hereunder, and the person
or persons executing this Agreement on its behalf has been duly authorized to do
so by all requisite corporate action.

                  9.1.3 BINDING AGREEMENT. This Agreement is legally binding
upon it and enforceable in accordance with its terms. The execution, delivery
and performance of this Agreement by it does not conflict with any agreement,
instrument or understanding, oral or written, to which it is a Party or by which
it may be bound, nor violate any material law or regulation of any court,
governmental body or administrative or other agency having jurisdiction over it.

                  9.1.4 GRANT OF RIGHTS; MAINTENANCE OF AGREEMENTS. It has not,
and will not during the Term (as defined in Section 12.1), grant any right to
any Third Party which would conflict with the rights granted to the other Party
hereunder or enter any agreement which would impair its ability to perform its
obligations under this Agreement. It has (or will have at the time performance
is due) maintained and will maintain and keep in full force and effect all
agreements necessary to perform its obligations hereunder.

                  9.1.5 VALIDITY. It is aware of no action, suit or inquiry or
investigation instituted by any governmental agency that questions or threatens
the validity of this Agreement.

         9.2 CONFORMANCE WITH LAWS. Innovex and Pilot agree to undertake all of
their respective obligations under this Agreement in material conformance with
all applicable local, state and federal laws and regulations, as amended,
including without limitation the Federal Equal Employment Opportunity Act, the
Fair Labor Standards Act, the Food Drug and Cosmetics Act, Section 1128B(b) of
the Social Security Act, the PDMA, the Medicaid Prescription Rebate Act, the
Veterans Health Care Act of 1992, and similar state laws. By entering into this
Agreement, it is not the intent of the Parties to enter into any financial
relationship or arrangement prohibited under state or federal fraud or abuse
regulations, including, but not limited to Sec. 1128B(b) of the Social Security
Act, and any regulations promulgated thereunder, nor do the Parties hereto have
any belief that the relationship and compensation arrangement provided in this
Agreement are prohibited by law or regulation. Neither Party shall assert
against the other that the compensation arrangement provided in this Agreement
is grounds for voiding the Agreement or rendering the Agreement unenforceable.
If either Party is notified by a state or federal agency, or it is alleged in a
qui tam proceeding, that performance of this Agreement is illegal, neither Party
shall be obligated to continue such performance hereof to the extent such
performance is an alleged violation of law. In such event, the Parties shall
proceed, to extent reasonably practicable, as described in the final sentence of
Section 15.13.

         9.3 RIGHTS IN PRODUCT. As of the Effective Date, Pilot warrants and
represents that, it has no knowledge of the existence of any patent or trademark
owned or controlled by anyone other than Wake Forest University (licensor to
Pilot), Pilot or an Affiliate which both covers the Product and would prevent
Pilot from making, using, or selling the Product or would prevent Pilot or
Innovex from promoting or marketing the Product in the Territory. Pilot is not
aware of any patents or trademarks owned by Third Parties which would be
infringed by the promotion or sale of the Product in the Territory. Pilot is not
pursuing any action against any Third Party which Pilot believes infringes its
trademark, copyright or patent relating to the Product. There are no actions,
suits, claims or proceedings pending against Pilot or any of its Affiliates in
any court or before any

                                      12.
<PAGE>

agency in the Territory related to alleged patent, trademark, or copyright
infringement in connection with the Product, and to the best of Pilot's
knowledge, no such actions, suits, claims or proceedings have been threatened.
During the Term (as defined in Section 12.1), Pilot will use commercially
reasonable and diligent efforts not to diminish the rights granted to Innovex
herein, including without limitation by not committing or permitting any acts or
omissions which would cause the material breach of any agreements between Pilot
and Third Parties which provide for intellectual property rights applicable to
the development, manufacture, use or sale of the Product in the Territory. As of
the Effective Date, Pilot is in compliance in all material respects with any
such agreements with Third Parties. Without limiting the foregoing, Innovex
expressly acknowledges and agrees that Pilot licenses the intellectual property
rights applicable to the development, manufacture, use and sale of the Product
from Wake Forest University pursuant to a License Agreement dated December 11,
1998, as may be amended from time to time.

         9.4 RECORD MAINTENANCE. Innovex will (i) maintain all necessary
personnel and payroll records for Innovex Sales Force and other Innovex
employees providing Marketing Services and Sales Force Services; (ii) compute
their wages and withhold applicable Federal, State, and local taxes and Federal
FICA payments; (iii) remit employee withholdings to the proper governmental
authorities and make employer contributions for Federal FICA and Federal and
State unemployment insurance payments; (iv) pay net wages and fringe benefits,
if any, directly to its employees; and (v) provide for liability and Workers'
Compensation insurance coverage. Without limiting the generality of the
foregoing, Innovex expressly acknowledges and agrees that Pilot shall have no
responsibility, obligation or liability with respect to any of the matters set
forth in this Section 9.4.

         9.5 FIREWALL. Innovex represents and warrants that it shall maintain as
confidential, shall keep separate and shall not share with other parts of the
Innovex organization (including any Affiliate of Innovex) that are or may be
engaged in the promotion and/or sales of a competing product, the material and
information supplied and/or generated hereunder for use in accordance with this
Agreement and the promotion and sale of the Product.

         9.6 NO USE OF NAMES OR TRADEMARKS. Except as otherwise provided in this
Agreement, neither Party will use the other Party's name in connection with any
publication or promotion without the other Party's prior written consent. Nor
shall either Party use the other Party's corporate or product logo or trademark
in any manner without the other Party's prior written consent.

         9.7 INDEPENDENT CONTRACTORS. For the purposes of this Agreement, the
Parties hereto are independent contractors of each other, and nothing contained
in this Agreement shall be construed to place them in the relationship of
partners, principal and agent, employer and employee, licensee and sublicensee
or joint venturers. Neither Party shall have the power or right to bind or
obligate the other Party, nor shall either Party hold itself out as having such
authority. Except as provided in Article 13: (a) no provision of this Agreement
shall be deemed to create or imply any contract of employment between Pilot and
any employee of Innovex; (b) all persons performing Services shall be employees
of Innovex, or subcontractors engaged by Innovex with prior consent of Pilot,
and shall not be entitled to any benefits applicable to employees of Pilot; (c)
Innovex shall be responsible for management of all employer obligations in
connection with Innovex employees who perform the Services and (d) Innovex
employees shall remain exclusively under the direct authority and control of
Innovex. The employer obligations of Innovex shall include: (i) human resource
issues, including establishment of employee policies, and administration of
health and benefits plans,

                                      13.
<PAGE>

401K plan, and other employee benefit plans; (ii) work performance and work
behavior issues, including probationary period, periodic and annual appraisals,
employee discipline and termination; (iii) administration of systems for
time-keeping, payroll and employee expense reimbursement; (iv) day to day
management of employment issues in connection with performance of the Services.

                                   ARTICLE 10

                                 CONFIDENTIALITY

         10.1 CONFIDENTIAL INFORMATION. Innovex and Pilot agree that all
information relating, directly or indirectly, to the Product, or the business
affairs or finances of the other or Affiliates or of any suppliers, agents,
distributors, licensees or customers of the other which comes into possession of
Innovex or Pilot under this Agreement shall be Confidential Information
("Confidential Information"). This Agreement and related documentation shall
also be treated as Confidential Information. Innovex agrees to hold Confidential
Information in strict confidence and disclose it only on a need-to-know basis to
Affiliates, subcontractors and employees who are under a written obligation to
maintain the confidentiality of the information. Notwithstanding the foregoing,
Confidential Information does not include, information:

                  10.1.1 which can be shown by written documentation to have
been known by the recipient prior to its receipt from the other;

                  10.1.2 which is public or lawfully becomes generally available
to the public through no fault of the recipient;

                  10.1.3 which is lawfully acquired from a Third Party without
being made subject to an obligation of confidence by the Third Party provided
such Third Party is not itself under a legal or contractual obligation to keep
such information confidential;

                  10.1.4 which by mutual agreement is released from a
confidential status; or

                  10.1.5 which is required to be disclosed under any statutory,
regulatory or judicial requirement, including, but not limited to, any filing
with the Securities Exchange Commission and, in that event, confidentiality will
be preserved and protected to the extent possible and; notice will be provided
to the other Party a reasonable amount of time prior to any such disclosure and
such other Party given a reasonable opportunity to contest or limit such
disclosure.

         10.2 OWNERSHIP OF DATA AND INTELLECTUAL PROPERTY; NO LICENSE. It is
expressly agreed that neither Party transfers to the other Party by operation of
this Agreement any patent right or license, copyright or other proprietary
right. All data and information generated or derived by Innovex as the result of
Services performed by Innovex under this Agreement shall be and remain the
exclusive property of Pilot. Pilot acknowledges that Innovex possesses certain
inventions, processes, know-how, trade secrets, improvements, other intellectual
properties and other assets, including but not limited to analytical methods,
procedures and techniques, computer technical expertise and software, and
business practices, including, but not limited to the Innovex Territory
Management System (ITMS), which have been independently developed by Innovex
(collectively "Innovex Property"). Pilot and Innovex agree that any Innovex
Property or improvements thereto

                                      14.
<PAGE>

which are used, improved, modified or developed by Innovex under or during the
Term (as defined in Section 12.1) are the sole and exclusive property of
Innovex.

                                   ARTICLE 11

                                 INDEMNIFICATION

         11.1 INDEMNIFICATION BY PILOT. Pilot shall indemnify, defend, save,
protect, and hold harmless Innovex, its Affiliates, and its and their respective
directors, officers, employees, and agents ("Innovex Indemnitees") against any
and all losses, claims, damages, liabilities, costs and expenses (including
reasonable attorneys' fees and expenses and court costs) (collectively,
"Losses") resulting or arising from any Third Party claims, actions,
proceedings, investigations or litigation relating to or arising from or in
connection with: (i) the design, development, manufacture, sale, distribution or
use of the Product; (ii) the breach by Pilot of any of its obligations under
this Agreement; (iii) the grossly negligent or willful misconduct of Pilot or
any of its directors, officers, employees or agents; (iv) a violation of any
law, rule or regulation by Pilot relating to this Agreement; (v) the Promotional
Materials or any other materials referred to in Section 6.2; or (vi) the
infringement or violation, or alleged infringement or violation, by Pilot or the
Product of any patents or any copyrights, trademark, trade secret or other
intellectual property rights. Notwithstanding the foregoing, Pilot shall not be
required to indemnify Innovex for any Losses to the extent they arise from (a)
the negligent or willful misconduct of Innovex or any of the Innovex Indemnitees
or (b) Innovex's breach of a material Innovex obligation under this Agreement.

         11.2 INDEMNIFICATION BY INNOVEX. Innovex shall indemnify, defend, save,
protect, and hold harmless Pilot, its Affiliates, and its and their respective
directors, officers, employees, and agents (the "Pilot Indemnitees") against any
and all Losses resulting or arising from any Third Party claims, actions,
proceedings, investigations or litigation relating to or arising from or in
connection with: (i) the marketing, promotion or sale of the Product by Innovex
in a manner which violates this Agreement; (ii) the breach by Innovex of any of
its obligations under this Agreement; (iii) the grossly negligent or willful
misconduct of Innovex or any of its directors, officers, employees or agents;
(iv) a violation of any law, rule or regulation by Innovex relating to this
Agreement; or (v) the representations or misrepresentations by Innovex
(including, without limitation, the Innovex Sales Force) relating to the Product
which were not consistent with the labeled claims or Promotional Material.
Notwithstanding the foregoing, Innovex shall not be required to indemnify Pilot
for any Losses to the extent they arise from (a) the negligent or willful
misconduct of Pilot or Pilot Indemnitees; (b) the breach by Pilot of a material
Pilot obligation under this Agreement; (c) a manufacturing or design defect of
the Product; or (d) a strict liability claim arising out of Pilot's failure to
warn.

         11.3 PROCEDURE. The Party seeking indemnification hereunder (the
"Indemnified Party") shall (a) promptly notify the Party obligated to indemnify
(the "Indemnifying Party") of any Losses for which the Indemnified Party seeks
indemnification (provided that the failure to so notify shall not affect or
reduce the Indemnifying Party's obligations hereunder, unless the Indemnifying
Party's ability to defend against such Third Party claim, action, proceeding,
investigation or litigation is materially prejudiced by such failure); (b)
cooperate fully with Indemnifying Party and its legal representatives in the
investigation of any matter that is the subject of indemnification; (c) permit
the Indemnifying Party full control over the defense and settlement of any
matter the subject of

                                      15.
<PAGE>

indemnification; and (d) not unreasonably withhold its approval of the
settlement of any claim, liability or action by Indemnifying Party covered by
this indemnification provision.

         11.4 NO CONSEQUENTIAL DAMAGES. Notwithstanding the Parties' rights and
remedies in equity, neither Party, nor its Affiliates or their respective
directors, officers, employees or agents shall have any liability to the other
for any special, incidental, indirect or consequential damages, including, but
not limited to the loss of opportunity, use, revenue or profit, in connection
with or arising out of this Agreement, or the Services performed by Innovex
hereunder, even if such damages were foreseeable.

         11.5 PILOT RESPONSIBILITY FOR PRODUCT DESCRIPTION. Innovex shall not be
liable to Pilot for claims or losses arising out of the statements or
representations of the Innovex Personnel with respect to the Product to the
extent the statements or representations conform to the written or printed
statements or representations made to the Innovex Personnel by Pilot with
respect to the Product or contained in the Product labeling, Promotional
Materials or other material referred to in Section 6.2, provided all such
materials have been approved in advance in writing by Pilot.

         11.6 INSURANCE. Innovex and Pilot shall each, at its own cost and
expense, obtain and maintain in full force and effect, insurance during the Term
that is reasonable and customary in light of the activities to be performed by
such Party hereunder, and which is reasonably acceptable to the other Party.
Each Party shall provide the other Party an original signed certificate of
insurance evidencing all coverage herein required, within thirty (30) days after
the effective date of this Agreement. The certificate must provide that thirty
(30) days prior written notice of cancellation or material change in insurance
coverage will be provided.

                                   ARTICLE 12

                              TERM AND TERMINATION

         12.1 TERM. The term of this Agreement will begin on the Effective Date
and continue until the fifth anniversary of the Sales Force Commencement Date,
unless the Agreement is terminated earlier, or renewed, in accordance with this
Article 12 (together with all renewal Terms as set forth in Section 12.2, the
"Term"). "Year One" shall mean the 12 month period beginning on the Sales Force
Commencement Date; "Year Two" shall mean the 12 month period following Year One;
and so on.

         12.2 RENEWAL. This Agreement will terminate at the end of the Term
unless the Parties agree to renew this Agreement . In the event of renewal, this
Agreement shall be extended by 12 months (an "Extension Term"), and thereafter
may be extended in the same manner for successive 12-month periods (each also an
"Extension Term"). The fees for services provided in any Extension Term shall be
the greater of (i) the fully loaded costs charged by Innovex for the prior 12
month period, plus 4%, or (ii) the fully loaded costs charged by Innovex for the
prior 12 month period, plus a percentage increase equal to the percentage
increase in the Consumer Price Index (all products) during the most recently
completed calendar year.

         12.3 MATERIAL BREACH. Either Party may terminate this Agreement for
material breach upon thirty (30) days written notice specifying the nature of
the breach, if such breach (i) has not

                                      16.
<PAGE>

been substantially cured within the thirty (30) day period or (ii) is not
curable within such 30-day period and the breaching Party has not commenced and
diligently continued during such 30-day period reasonable actions to cure such
breach. During the 15-day cure period for termination due to breach, each Party
will continue to perform its obligations under this Agreement. In addition,
Pilot may terminate this Agreement on 65 days notice upon the termination of the
Investment Agreement.

         12.4 NO PRODUCT LAUNCH. Either Party may terminate this Agreement (i)
if Pilot provides written notice to Innovex that it will not market and launch
the Product, and that Pilot has terminated development of the Product, or (ii)
if Product Launch does not occur prior to December 31, 2003.

         12.5 BANKRUPTCY. Either Party may terminate this Agreement by written
notice to the other Party, if the other Party files a petition for bankruptcy,
reorganization or arrangement under any state statute, or makes an assignment
for the benefit of creditors or takes advantage of any insolvency statute or
similar statute, or such filing is made by a Third Party, and such filing is not
withdrawn within sixty (60) days of the filing date, or if a receiver or trustee
is appointed for the property and assets of the Party and the receivership
proceedings are not dismissed within sixty (60) days of such appointment.

         12.6 ACCRUED RIGHTS. Termination of the Agreement for whatever reason
shall not affect the accrued rights of either Innovex or Pilot arising under or
out of this Agreement as of the effective date of such termination. Termination
of this Agreement shall not relieve the Parties of any liability which accrued
hereunder prior to the effective date of such termination nor preclude either
Party from pursuing all rights and remedies it may have hereunder or at law or
in equity with respect to any breach of this Agreement nor prejudice either
Party's right to obtain performance of any obligation. In particular, upon
termination for any reason, Pilot shall (i) pay Innovex all fees for Services
rendered which are due and owing to Innovex because of any completed performance
of Innovex's obligations prior to the effective date of termination, and (ii)
pay all pass-through expenses actually incurred by Innovex prior to the
effective date of termination; and (iii) pay any other costs which have been
expressly identified as being due upon termination.

         12.7 RIGHT TO RECEIVE DATA. Upon termination, Pilot shall have the
right to receive from Innovex all data attendant or related to Services or other
sales and marketing activities under this Agreement.

         12.8 SURVIVAL. The following provisions shall survive any expiration or
termination of this Agreement indefinitely (unless a time period is specified,
in which case such provision shall survive for the period of time specified):
Sections 1.1, 1.4, 4.7, 4.8, 5.5.3, 6.2.2, 7.1, 7.2, 7.4, 7.5 (last sentence
only), 7.6 (first sentence only), 8.5, 9.4, 9.5, 9.6, 12.6, 12.7, 12.8 and
Articles 10, 11 (except Section 11.6), 13, 14 and 15.

                                   ARTICLE 13

                             SALES FORCE CONVERSION

         13.1 RIGHT TO CONVERT SALES FORCE. Pilot shall have the right to offer
Pilot employment to the Innovex Personnel who are members of the Sales Force at
the end of the Term (including, without limitation, any Extension Term), or
earlier upon a termination of this Agreement by Pilot

                                      17.
<PAGE>

under Section 12.3 or 12.5. In the event Pilot desires to convert some or all of
the Sales Force to its employment, it shall provide Innovex notice of such
election at least three (3) months prior to the end of the Term (including,
without limitation, any Extension Term), or with its notice of termination under
Section 12.3 or 12.5, as the case may be. With the notice (or not later than two
weeks thereafter), Pilot will provide a list of Innovex Personnel to whom they
will make job offers. Pilot shall pay Innovex a fee of $** for each member of
the Innovex Personnel who is a member of the Sales Force actually hired by Pilot
and retained by Pilot for 90 days.

         13.2 TRANSITION PLAN. In the event Pilot decides to convert the Sales
Force, in accordance with Section 13.1, the Parties shall promptly meet and
determine a transition plan, which shall include a schedule for actions which
will enable a smooth transition date for all Innovex Personnel: (i) who may be
offered employment by Pilot; (ii) who may not be offered such employment; and
(iii) who may decline such offers. Pilot shall identify for Innovex the names of
Innovex Personnel who have elected to accept employment offers from Pilot and
those who have declined an employment offer as soon as reasonably practicable
after Pilot receives notice of such election from the applicable Innovex
Personnel.

         13.3 PILOT DETERMINATION. Pilot shall make an independent determination
regarding the qualifications and suitability of Innovex Personnel to be offered
employment by Pilot, and the terms of such offers, if any. No information
contained in the personnel files of Innovex Personnel shall be disclosed to
Pilot, including resumes, applications, performance appraisals or disciplinary
records, or the results of drug screens, motor vehicle or background reports
without the consent of the individual involved. Notwithstanding the foregoing,
Innovex shall notify Pilot of any material violation by any Innovex Personnel of
the PDMA.

         13.4 PROPRIETARY INFORMATION. In the event of any Sales Force
conversion under this Article 13, the Innovex Personnel who become employed by
Pilot may continue to use in their employment by Pilot any and all Product
knowledge that they gained while in the employment of Innovex, including without
limitation knowledge regarding Product customers, competition, selling
techniques, and the like.

                                   ARTICLE 14

                               DISPUTE RESOLUTION

         14.1 GOVERNING LAW. Resolution of all disputes arising out of or
related to this Agreement or the performance, enforcement, breach or termination
of this Agreement and any remedies relating thereto, shall be governed by and
construed under the substantive laws of the State of North Carolina, United
States of America, as applied to agreements executed and performed entirely in
the State of North Carolina, without regard to conflicts of law rules.

         14.2 INTERNAL REVIEW. In the event that a dispute, difference or
question arises pertaining to any matters which are the subject of this
Agreement (a "Dispute") and either party so requests in writing, prior to the
initiation of any formal legal action, the Dispute will be submitted to the JMC,
which will use its good faith efforts to resolve the Dispute within ten (10)
days. If the JMC is unable to resolve the Dispute in such period, the JMC will
refer the Dispute to the Chief Executive Officers of Pilot and Quintiles
Transnational Corp. For all Disputes referred to the Chief Executive Officers,

                                      18.
<PAGE>

the Chief Executive Officers shall use their good faith efforts to resolve the
Dispute within ten (10) days after such referral.

         14.3 ARBITRATION. If the Parties are unable to resolve disputes under
Section 14.2, then either party can seek binding arbitration to be conducted in
accordance with the Commercial Arbitration Rules of the American Arbitration
Association, sitting in Raleigh, North Carolina, as in effect at the time of the
arbitration hearing, such arbitration to be completed in a sixty (60) day
period. The arbitration panel will be composed of three arbitrators, one of whom
will be chosen by Pilot, one by Innovex, and the third by the two so chosen. If
both or either of Pilot or Innovex fails to choose an arbitrator or arbitrators
within fourteen (14) days after receiving notice of commencement of arbitration,
or if the two arbitrators fail to choose a third arbitrator within fourteen (14)
days after their appointment, the American Arbitration Association shall, upon
the request of both or either of the parties to the arbitration, appoint the
arbitrator or arbitrators required to complete the panel. The decision of the
arbitrators shall be final and binding on the parties, and specific performance
giving effect to the decision of the arbitrators may be ordered by any court of
competent jurisdiction.

         14.4 COSTS. The Parties shall bear their own costs in preparing for and
participating in the resolution of any Dispute, and the costs of mediator(s) and
arbitrator(s) shall be equally divided between the parties.

                                   ARTICLE 15

                                  MISCELLANEOUS

         15.1 RETURN OF MATERIALS. At the completion of the services by Innovex
or termination pursuant to Article 12, all materials and all other data owned by
Pilot under this Agreement (including, without limitation, all data and
information generated or derived by Innovex as the result of Services performed
by Innovex under this Agreement), regardless of the method of storage or
retrieval, shall either be delivered to Pilot in such form as is then currently
in the possession of Innovex or disposed of, at the direction and written
request of Pilot unless such materials are otherwise required to be stored or
maintained by Innovex as a matter of law or regulation. The costs associated
with either of the above options shall be paid by Pilot.

         15.2 NONSOLICITATION OF EMPLOYEES. Except as otherwise provided herein,
during the Term and for a period of six (6) months thereafter, each Party agrees
that neither it nor any of its Affiliates shall, directly or indirectly,
recruit, solicit or induce any employee of the other Party to terminate his or
her employment with such other Party, without the express written consent from
the other party.

         15.3 ENTIRE AGREEMENT; AMENDMENT. This Agreement, and the other
agreements referred to herein (or entered into as of the date hereof) between
the Parties (or between Pilot and PharmaBio), set forth the complete, final and
exclusive agreement and all the covenants, promises, agreements, warranties,
representations, conditions and understandings between the Parties hereto and
supersede and terminate all prior agreements and understandings between the
Parties. There are no covenants, promises, agreements, warranties,
representations, conditions or understandings, either

                                      19.
<PAGE>

oral or written, between the Parties other than as are set forth herein and
therein. No subsequent alteration, amendment, change or addition to this
Agreement shall be binding upon the Parties unless reduced to writing and signed
by an authorized officer of each Party.

         15.4 FORCE MAJEURE. Both Parties shall be excused from the performance
of their obligations under this Agreement to the extent that such performance is
prevented by force majeure and the nonperforming Party promptly provides notice
to the other Party. Such excused performance shall be continued so long as the
condition constituting force majeure continues. For purposes of this Agreement,
force majeure shall include conditions beyond the control of the Parties,
including without limitation, an act of God, war, civil commotion, labor strike
or lock-out, epidemic, failure or default of public utilities or common
carriers, destruction of production facilities or materials by fire, earthquake,
storm or like catastrophe; provided, however, the payment of invoices due and
owing hereunder at the time of the force majeure shall not be delayed by the
payor because of a force majeure affecting the payor.

         15.5 NOTICES. Any notice required or permitted to be given under this
Agreement shall be in writing, shall specifically refer to this Agreement and
shall be deemed to have been sufficiently given for all purposes if mailed by
first class certified or registered mail, postage prepaid, express delivery
service or personally delivered. Unless otherwise specified in writing, the
mailing addresses of the Parties shall be as described below.

         For Innovex:               Innovex LP
                                    10 Waterview Boulevard
                                    Parsippany, NJ 07054
                                    Attention: President
                                    Fax:  (973) 257-4581
                                    Phone:  (973) 257-4570

         With a copy to:            General Counsel
                                    10 Waterview Boulevard
                                    Parsippany, New Jersey 07054
                                    Fax:  (973) 257-4581
                                    Phone:  (973) 257 4784

         For Pilot:                 Pilot Therapeutics, Inc.
                                    101 North Chestnut Street
                                    Albert Hall
                                    Winston-Salem, NC  27101
                                    Attention:  Chief Executive Officer
                                    Fax:  (336) 725-2221
                                    Phone:  (336) 725-2222

         With a copy to:            Womble Carlyle Sandridge & Rice, PLLC
                                    200 West Second Street
                                    Winston-Salem, NC  27101
                                    Attn:  Peter A. Zorn, Esq.
                                    Fax:  (336) 726-6906
                                    Phone:  (336) 721-3634

                                      20.
<PAGE>

or to such other destination as either Party may hereafter notify the other
Party in accordance with this section.

         15.6 MAINTENANCE OF RECORDS. Each Party shall keep and maintain all
records required of it by law or regulation with respect to the Product and
shall make copies of such records available to the other Party upon request.

         15.7 UNITED STATES DOLLARS. References in this Agreement to "Dollars"
or "$" shall mean the legal tender of the United States of America.

         15.8 NO STRICT CONSTRUCTION. This Agreement has been prepared jointly
and shall not be strictly construed against either Party.

         15.9 ASSIGNMENT. Neither Party may assign or transfer this Agreement or
any rights or obligations hereunder without the prior written consent of the
other, except that a Party may make such an assignment without the other Party's
consent to Affiliates or to a successor to substantially all of the business of
such Party, whether in a merger, sale of stock, sale of assets or other
transaction (including, in the case of Pilot, a successor to substantially all
of the nutraceutical business of Pilot). Any permitted successor or assignee of
rights and/or obligations hereunder shall, in a writing to the other Party,
expressly assume performance of such rights and/or obligations. Any permitted
assignment shall be binding on the successors of the assigning Party. Any
assignment or attempted assignment by either Party in violation of the terms of
this Section 15.10 shall be null and void and of no legal effect.

         15.10 PERFORMANCE BY AFFILIATES. Obligations under this Agreement may
be performed by Affiliates of Innovex and Pilot only with the prior consent of
the other Party. In the event any such performance is carried out by Affiliates
with the prior consent of the other Party, each of Innovex and Pilot guarantees
performance of this Agreement by its Affiliates. No Affiliate of a Party may
make decisions inconsistent with this Agreement, amend the terms of this
Agreement or act contrary to its terms in any way.

         15.11 COUNTERPARTS. This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.

         15.12 FURTHER ACTIONS. Each Party agrees to execute, acknowledge and
deliver such further instruments, and to do all such other acts, as may be
necessary or appropriate in order to carry out the purposes and intent of this
Agreement.

         15.13 SEVERABILITY. If any one or more of the provisions of this
Agreement is held to be invalid or unenforceable by any court of competent
jurisdiction from which no appeal can be or is taken, the provision shall be
considered severed from this Agreement and shall not serve to invalidate any
remaining provisions hereof. The Parties shall make a good faith effort to
replace any

                                      21.
<PAGE>

invalid or unenforceable provision with a valid and enforceable one such that
the objectives contemplated by the Parties when entering this Agreement may be
realized.

         15.14 AMBIGUITIES. Ambiguities, if any, in this Agreement shall not be
construed against any Party, irrespective of which Party may be deemed to have
authored the ambiguous provision.

         15.15 HEADINGS. The headings for each article and section in this
Agreement have been inserted for convenience of reference only and are not
intended to limit or expand on the meaning of the language contained in the
particular article or section

         15.16 NO WAIVER. Any delay in enforcing a Party's rights under this
Agreement or any waiver as to a particular default or other matter shall not
constitute a waiver of such Party's rights to the future enforcement of its
rights under this Agreement, except with respect to an express written and
signed waiver relating to a particular matter for a particular period of time.

                           [SIGNATURE PAGE TO FOLLOW]

                                      22.
<PAGE>

         IN WITNESS WHEREOF, the Parties have executed this Agreement in
duplicate originals by their duly authorized officers as of the date and year
first above written.

PILOT THERAPEUTICS, INC.

By:    /s/ Floyd H. Chilton
       --------------------------

Print: Floyd H. Chilton

Title: CEO

Date:  July 31, 2001

INNOVEX  LP
BY:  INNOVEX AMERICA HOLDING COMPANY,
ITS GENERAL PARTNER

By:      /s/ Robert D. Love
         ------------------------

Print:  Robert D. Love

Title:  Senior VP, Finance & Technology

Date:   June 22, 2001

                                      23.
<PAGE>

                                    EXHIBIT A

DEFINITIONS The following terms shall have the following meanings as used in
this Agreement:

1.       "AFFILIATE" means, as to any Party, any corporation or business entity
         controlled by, controlling, or under common control with such Party.
         For this purpose, "control" shall mean direct or indirect beneficial
         ownership of at least fifty percent (50%) of the voting stock or income
         interest in such corporation or other business entity.

2.       "FDA" means the U.S. Food and Drug Administration.

3.       "FIELD MANAGER" means a member of the Sales Force having the
         responsibilities set forth on Schedule III for such job title.

4.       "FULLY LOADED COST" will have the meaning provided in Section 3.3.

5.       "INNOVEX PERSONNEL" means any individual who is performing any part of
         the services hereunder on behalf of Innovex.

6.       "INVESTMENT AGREEMENT" means the Investment and Royalty Agreement of
         even date herewith between PharmaBio and Pilot.

7.       "JOINT MARKETING COMMITTEE" or "JMC" means the joint committee formed
         pursuant to Section 2.1.

8.       "MARKETING PLAN" means a plan detailing the marketing activities to be
         performed in respect of the commercialization of the Product, which may
         include, by way of example and without limitation, educational
         programs, symposia, poster-sessions, seminars for physicians, market
         research, pricing studies, development of promotional activities and
         advertising agency fees, to the extent allowed by the FDA or under the
         Food Drug & Cosmetic Act and its attendant regulations and as may be
         allowed by applicable regulatory authorities and the AMA Guidelines on
         Gifts to Physicians.

9.       "NATIONAL SALES MANAGER" means the leader of the Sales Force having the
         responsibilities set forth on Schedule III for such job title.

10.      "PDMA" means the Prescription Drug Marketing Act.

11.      "PHARMABIO" means PharmaBio Development, Inc.

12.      "PRODUCT" means Pilot's proprietary product, PLT 3514, as such name may
         change from time to time.

13.      "PRODUCT LAUNCH" or "LAUNCH" means the first date upon which the
         Product is shipped by Pilot in the United States for commercial sale.

14.      "PROJECT ADMINISTRATOR" means the Innovex employee at the headquarters
         office who will provide administrative support for the National Sales
         Manager.

                                      A-1
<PAGE>

15.      "PROMOTIONAL MATERIALS" means written materials generated for the
         purpose of promotion and sale of the Product, in all cases with the
         prior written approval of Pilot.

16.      "SALES FORCE" means those Innovex Personnel, including without
         limitation Sales Representatives, Field Managers, National Sales
         Manager and Project Administrator who promote the Product under this
         Agreement.

17.      "SALES FORCE COMMENCEMENT DATE" shall mean the first date upon which
         Innovex provides Sales Representatives under this Agreement.

18.      "SALES REPRESENTATIVE" means an employee of Innovex: who is responsible
         for meeting with customers and physicians and others who can buy (or
         influence the buying process and decision regarding) the Product. The
         responsibilities of a Sales Representative are set forth on Schedule
         III.

19.      "SAMPLE" means units of Product distributed by Innovex, and for
         complimentary distribution to patients by practitioners licensed to
         recommend Product, whether packaged as individual samples or as trade
         packages.

20.      "SYNDICATED SALES FORCE" means a sales force in which the sales
         representatives are promoting the products of one company in one or
         more the available detail positions (e.g. P1, P2 and/or P3) and another
         company(ies) in one or more of the other detail positions.

21.      "TERM" shall have the meaning provided in Section 12.1.

22.      "TERRITORY" means the United States of America (including Puerto Rico).

23.      "THIRD PARTY" means any entity or person other than Innovex or Pilot or
         an Affiliate of either of them.

                                      A-2
<PAGE>

                                    EXHIBIT B

        MARKETING PLAN OUTLINE (EXAMPLE ONLY. JMC MAY USE ITS OWN FORMAT)

I.      EXECUTIVE SUMMARY

II.     MARKET ANALYSIS
        o        Market
        o        Products
        o        Future Outlook

III.    PRODUCT PROFILE
        o        Product Description
        o        Indications
        o        Clinical Experience and Program
        o        Formulation, Packaging and Administration

IV.     SWOT ANALYSIS

V.      5 YEAR SALES FORECASTS
        o        Units, Dollars, Prescriptions, Market Share

VI.     OBJECTIVES
        o        Awareness
        o        Communication
        o        Product Use
        o        Sales
        o        Market Share
        o        Managed Care/Formulary

VII.    KEY ISSUES

VIII.   STRATEGIES
        o        Product Positioning
        o        Audiences
        o        Sales Force
        o        Pharmacoeconomics

IX.     TACTICS
        o        Pharmacoeconomics
        o        Market Research
        o        Medical Education
        o        Publication Plan
        o        Personal Selling Materials / Program
        o        Clinical Support
        o        Sales Force Support

                                      B-1
<PAGE>

        o        Sampling
        o        Managed Care / Formulary
        o        Territory Sales Force Effort

X.      BUDGET FOLLOWING YEAR

XI.     TIMELINES

                                      B-2
<PAGE>

                                    EXHIBIT C
                    COST ALLOCATION FOR SALES FORCE SERVICES
<TABLE>
<CAPTION>

==================================================================== ==================== ======================= ============
                                                                        INNOVEX SALES
                                                                       FORCE EXPENSES                                PILOT
                             CATEGORY                                    INCLUDED IN       INNOVEX PASS-THROUGH     DIRECT
                                                                          DAILY FEE              EXPENSES          EXPENSES
==================================================================== ==================== ======================= ============
<S>                                                                  <C>                  <C>                     <C>
Recruitment Advertising                                                       X
-------------------------------------------------------------------- -------------------- ----------------------- ------------
Auto Costs (allowance, mileage, parking, tolls, etc.) X
-------------------------------------------------------------------- -------------------- ----------------------- ------------
Back office, infrastructure                                                   X
-------------------------------------------------------------------- -------------------- ----------------------- ------------
Distribution of the Samples                                                                                            X
-------------------------------------------------------------------- -------------------- ----------------------- ------------
Drug Screens and reference checks                                             X
-------------------------------------------------------------------- -------------------- ----------------------- ------------
Equipment:        1)  Computer (hard & soft), printer, fax                    X
                  2)  Detail bags, business cards                                                                      X
-------------------------------------------------------------------- -------------------- ----------------------- ------------
Field Supplies: postage, stationery, printer ink, phone charges               X
-------------------------------------------------------------------- -------------------- ----------------------- ------------
Forms, reports especially requested by PILOT                                                                           X
-------------------------------------------------------------------- -------------------- ----------------------- ------------
ITMS (call reporting, voice mail, email)                                      X
-------------------------------------------------------------------- -------------------- ----------------------- ------------
Insurance: employment, workers comp, E & O, CGL                               X
-------------------------------------------------------------------- -------------------- ----------------------- ------------
Medical and other benefits                                                    X
-------------------------------------------------------------------- -------------------- ----------------------- ------------
Meetings:
kickoff meeting                                                                                                        X
regional & district meetings; product Launches; initial training.
-------------------------------------------------------------------- -------------------- ----------------------- ------------
Payroll Taxes                                                                 X
-------------------------------------------------------------------- -------------------- ----------------------- ------------
Promotional literature and sales aids, including distribution                                                          X
-------------------------------------------------------------------- -------------------- ----------------------- ------------
Recruiting (database screening, ad placement); re-recruiting                  X
-------------------------------------------------------------------- -------------------- ----------------------- ------------
Salaries and variable incentive compensation (bonus)                          X
-------------------------------------------------------------------- -------------------- ----------------------- ------------
Sales data                                                                                                             X
-------------------------------------------------------------------- -------------------- ----------------------- ------------
Samples                                                                                                                X
-------------------------------------------------------------------- -------------------- ----------------------- ------------
Sample Packaging                                                                                                       X
-------------------------------------------------------------------- -------------------- ----------------------- ------------
Sample Accountability Program & Systems                                                             X
-------------------------------------------------------------------- -------------------- ----------------------- ------------
Territory alignment, mapping and optimization                                                                          X
-------------------------------------------------------------------- -------------------- ----------------------- ------------
Trade shows and organized customer events                                                           X
-------------------------------------------------------------------- -------------------- ----------------------- ------------
Training--production of training materials                                                                              X
-------------------------------------------------------------------- -------------------- ----------------------- ------------
Training--cost of delivery and facilities                                                                               X
-------------------------------------------------------------------- -------------------- ----------------------- ------------
Travel Expenses (air, hotel & meals) for Sales Force                                                X
*Interviewing                                                                                       X
*Training                                                                                           X
*Field Manager, National Sales Manager, Representatives                                             X
-------------------------------------------------------------------- -------------------- ----------------------- ------------
</TABLE>

                                      C-1
<PAGE>

                                   SCHEDULE I

                            INNOVEX RESPONSIBILITIES

1.       Innovex will provide the following Innovex Personnel to comprise the
         Sales Force:

         (A) Sales Representatives (as defined in Schedule III, Section 1);

         (B) Field Managers (as defined in Schedule III, Section 2);

         (C) National Sales Manager (as defined in Schedule III, Section 3) and

         (D) Project Administrator.

2.       Innovex will be responsible for recruitment and re-recruitment of the
         Innovex Personnel, in accordance with the Innovex 10 step hiring
         process. Pilot will not be involved in the interviewing, selection or
         hiring of Innovex Personnel.

3.       Innovex will only hire qualified Innovex Personnel, defined as meeting
         a hiring profile to be established by the JMC.

4.       Innovex will manage all employer obligations in connection with the
         employment of Innovex Personnel, including, but not limited to,
         discipline and termination of employees. Innovex shall provide
         administrative resources for Field Managers, and communication between
         Innovex and the Innovex Personnel. Pilot will not be involved in the
         management or supervision of Innovex Personnel

5.       Training: The JMC will be responsible for developing a POA for
         training. In accordance with Section 6.1 of the Agreement, Innovex
         shall be responsible for developing and providing training for the
         Sales Force regarding the Promotional Materials, disease and
         therapeutic areas, Product knowledge, Product marketing strategy and
         regional management in the Territory, Product recalls, reporting
         complaints and adverse events. The training will be conducted in a
         manner so as to meet or exceed the minimum training standards agreed to
         by the Parties and in accordance with all laws, rules, regulations and
         policies, including but not limited to the AMA Guidelines on Gifts to
         Physicians.

6.       Innovex shall be responsible for equipping the Sales Force with
         computer hardware and software needed to carry out the promotion of the
         Product. All Innovex Personnel assigned to the Sales Force will receive
         a laptop computer and printer with interface cable. Innovex shall be
         responsible for appropriate licenses and training, configuration, and
         replication/data line access. Innovex shall provide upgrades to
         hardware or software as it deems necessary for successful promotion of
         the Product. In addition, Innovex shall establish and provide help desk
         support for the hardware and software it provides.

7.       Innovex will provide the Sales Force the Innovex Territory Management
         System ("ITMS") or other comparable sales force automation system and
         email/voice mail systems which will include components for call
         reporting, expense reporting, physician prescribing, call history,
         sales and market-share reporting, customized reports and

                                      SI-1
<PAGE>

         communications. Innovex shall also provide a sample tracking and
         compliance program. These systems and programs shall be of similar
         quality and effectiveness to that which Innovex provides to its other
         clients. Innovex may subcontract for all or a portion of the sample
         accountability services. Innovex will make reasonable efforts to enable
         a reasonable number (but not less than four) of Pilot personnel to have
         access to and be able to link into the ITMS and email/voicemail systems
         used by the Sales Force. Each member of the JMC shall be provided
         copies of all information and materials provided to or accessible by
         the Sales Force.

8.       Innovex shall be responsible for equipping the Field Managers with such
         other equipment as needed to carry out the promotion of the Product.

9.       All promotional and detailing activities and obligations undertaken by
         Innovex Personnel and the Sales Force hereunder shall be performed in
         accordance with the Marketing Plan. No Innovex Personnel shall create
         Promotional Materials or other written materials relating to the
         Product without first submitting those materials to Pilot for and
         obtaining Pilot's written approval prior to use. Innovex Personnel and
         the Sales Force shall make no statements, claims or undertakings to any
         person with whom they discuss or promote the Product that are
         inconsistent with the Promotional Materials. Promotional activities
         shall be in compliance with all applicable laws, rules, and regulations
         and policies. The Innovex Personnel and the Sales Force shall not
         offer, pay, solicit or receive any remuneration to or from physicians
         or prescribers or health facilities, in order to induce referrals of or
         purchase of the Product. The Innovex Personnel and the Sales Force
         shall have no direct contact with, nor shall the Innovex Personnel and
         the Sales Force be involved with the delivery of the Product to
         patients of physicians, other than delivery of Samples directly to
         physicians or practitioners authorized to recommend the Product in the
         Territory. Innovex shall permit Pilot to accompany Sales
         Representatives on sales calls from time to time with reasonable
         advance notice.

10.      Innovex shall provide monthly project management reports to Pilot in
         Innovex's standard form within fifteen (15) business days after the end
         of each month.

11.      Innovex shall be responsible for organizing and coordinating the
         Product Launch meeting, POA meetings and national, regional or district
         meetings, subject to instructions from the JMC.

12.      Innovex Sales Representatives shall distribute the Samples provided by
         Pilot as directed in the Marketing Plan.

Each item on this Schedule 1 is expressly subject to Section 2.1.

                                      SI-2
<PAGE>

                                   SCHEDULE II

                      PILOT RESPONSIBILITIES & OBLIGATIONS

                               PILOT SALES PROJECT

1.      Pilot shall ensure that the Pilot sales, marketing and medical
        personnel are fully briefed as to the complementary role of the Innovex
        Personnel and ensure cooperation with the Innovex Personnel.

2.      Subject to Section 2.1, Pilot shall be responsible for:

        o Communications within Pilot and from Pilot to Innovex.
        o Handling all aspects of order processing and fulfillment, invoicing
          and collection, (may be accomplished through further Agreement with
          Innovex or an Affiliate), Product supply, inventory and receivables.
        o Pilot Business Cards [If required].
        o Cost of all Innovex provided training.
        o Cost of establishment of Sales Force Targets, territory alignments,
          mapping and optimization; validation of practitioner state license
          status.
        o Cost of Launch Meetings, initial training, national, regional and
          district meetings.

<PAGE>

                                  SCHEDULE III

                                ROLE DEFINITIONS

1.       SALES REPRESENTATIVE

         RESPONSIBILITIES AND DUTIES:

         o        Generates sales within an assigned territorial boundaries.
         o        Maintains current and prospective customer profiles and
                  information.
         o        Keeps current with Product, competitor products, and market
                  knowledge.
         o        Maintains a professional image for Pilot and the Product at
                  all times.
         o        Organizes territory-planning to meet sales and call goals.
         o        Provides sales presentations: individual one-on-one, groups,
                  in-services.
         o        Maintains Sample inventories, distributes Samples, complies
                  with Sample accountability procedures and policies.
         o        Participates in all training programs.
         o        Completes and submits in a timely manner all accountability
                  and expense reports.
         o        Monitors that Product is appropriately stocked by local
                  distribution centers, hospitals and pharmacies.
         o        Monitors that Product is on hospital formularies.
         o        Attends trade shows as directed by National Sales Manager.

         SKILLS:

         o        Initiative
         o        Persuasiveness/Sales ability
         o        Planning and Organizing
         o        Individual Leadership/Influencing
         o        Teamwork/Collaboration
         o        Motivational Fit

2.       FIELD MANAGER

         o        Attains sales objectives within assigned districts.
         o        Deploys resources to maximize district sales potential.
         o        Implements Pilot Product strategies within district.
         o        Maintains District budgets and accurate records on all sales
                  activities.
         o        Makes regular field visits to develop, train, supervise,
                  motivate and monitor Sales Representative performance;
                  completes field contact reports.
         o        Makes final hiring decision; training and evaluation of Sales
                  Representatives.
         o        Documents and recommends all disciplinary actions to include
                  warnings,  suspensions,  probation, terminations.
         o        Communicates with Pilot management on a regular basis.
         o        Submits a formal monthly report to Innovex National Sales
                  Manager.
         o        Assists in the planning and delivery of initial training
                  course.
         o        Assists in the planning and delivery of POA or trimester
                  meetings.
                                     SIII-1

<PAGE>

         o        Monitors that Product is on managed care formularies that are
                  within the Field Manager's district.

3.       NATIONAL SALES MANAGER

         o        Hires, trains develops and evaluates Field Managers.
         o        Develops, supervises, motivates and monitors performance of
                  Field Managers.
         o        Maintains project budgets.
         o        Monitors days worked and directs Field Managers accordingly.
         o        Prepares and submits monthly summary report to Innovex and
                  Pilot management
         o        Serves as key point of contact for Pilot.
         o        Approves all Sales Force disciplinary actions.
         o        Develops initial training program for Sales Representatives
                  and Field Managers.
         o        Coordinates POA or trimester meetings; plans and conducts
                  meetings with Pilot and its region management.
         o        Coordinates submissions for national managed care formularies.
         o        Directs coordination of Field Manager and Sales
                  Representatives to attend trade shows as appropriate.

                                     SIII-2

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