Document:

Exhibit 10.11

                                                            [LOGO] STRINGER SAUL
                                                                   -------------

                             DATED December 10, 2001

                               (1) SKYEPHARMA INC

                           (2) SKYEPHARMA HOLDING AG

                                       and

                              (3) ASTRALIS LIMITED

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

                       TECHNOLOGY ACCESS OPTION AGREEMENT

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

                        17 Hanover Square London W1S 1HU
                      Tel: 020 7917 8500 Fax: 020 7917 8555
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THIS AGREEMENT is made on 10th day of December 2001

BETWEEN

(1)   SKYEPHARMA  INC a US company  having its  principal  place of  business at
      10450 Science Centre Drive, San Diego, California 92121, USA; and

(2)   SKYEPHARMA HOLDING AG a company  incorporated in Basle,  Switzerland whose
      registered office is at Grundstrasse 12, CH-6343

(Skyepharma Inc and Skyepharma Holding AG together being "Skyepharma")

(3)   ASTRALIS LIMITED a Delaware company having its principal place of business
      at 135 Columbia  Turnpike - Suite 301 Florham Park - New Jersey 07932, USA
      ("Company")

RECITALS

(A)   Skyepharma  owns  a  drug  delivery  technology  which  utilises  DepoFoam
      sustained  injectable,  inhalation and topical patented technologies ("the
      Technology").

(B)   The Company wishes to acquire from Skyepharma a  non-exclusive  licence to
      use the Technology in the Territory (as defined) and Skyepharma has agreed
      to grant to Company an option to  acquire a  non-exclusive  licence on the
      terms and conditions of this Agreement.

NOW IT IS HEREBY AGREED as follows:-

1     Definitions and Interpretation

1.1   In this  Agreement the  following  words and phrases shall (save where the
      context otherwise requires) have the following meanings:

      "Base Products"                 Company's  existing or  proposed  products
                                      which  include   leishmania   extract  for
                                      immunotherapy     for     psoriasis    and
                                      leishmaniasis  and  which  do  not  use or
                                      exploit the Technology;

      "the Commencement Date"         the   date   hereof;

      "Improvement"                   any  addition,  improvement,  modification
                                      development or novel or alternative use to
                                      or of the
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                                      Licensed Property;

      "Intellectual Property"         patents, trade marks, service marks, trade
                                      names,  registered designs, design rights,
                                      copyrights,  topography rights and each of
                                      them registered or existing in any part of
                                      the Territory;

      "Know-How"                      the body of technical  knowledge technical
                                      experience and skills and all  information
                                      in whatever  form owned by  Skyepharma  or
                                      which it is entitled  to licence  relating
                                      to,  or for use in  connection  with,  the
                                      Technology or its use and exploitation and
                                      includes  both  the  whole  body  of  such
                                      knowledge,    experience,    skills    and
                                      information and also any one or more parts
                                      of the  same;

      "Net  Sales"                    means the invoiced amount billed for sales
                                      of products  utilising  the  Technology to
                                      third party purchasers, less the following
                                      items  to the  extent  they  are  paid  or
                                      allowed and included in the invoice price:

                                      (i)   quantity,    trade    and/or    cash
                                            discounts actually granted;

                                      (ii)  amounts  refunded  or  credited  for
                                            products   which  were  rejected  or
                                            damaged;

                                      (iii) taxes,  tariffs,  customs duties and
                                            surcharges  and  other  governmental
                                            charges  incurred in connection with
                                            the sale, exportation or importation
                                            of such products;

      "the Licensed Property"         the Know-How and the  Technology;  and all
                                      copyright,  design rights and other rights
                                      of a like nature attaching to or connected
                                      with the Technical Documentation;

      "the Option"                    the option granted pursuant to Clause 2;

      "the Option Period"             the   period    which    begins   on   the
                                      Commencement  Date and  which  ends on the
                                      seventh   (7th)    anniversary    of   the
                                      Commencement Date;

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      "the Products"                  those products manufactured and/or sold by
                                      Company   which   use   or   exploit   the
                                      Technology;

      "the Technology Documentation"  all  manuals  and other  documentation  in
                                      which the  Know-How  is  recorded  and all
                                      other    technical   and    organisational
                                      documentation    associated    with    the
                                      Know-How;

      "the Term"                      the term of this  Agreement  as set out in
                                      Clause 6;

      "the Territory"                 The World.

1.2   Where the context so permits,  words importing the masculine  gender shall
      include the feminine  and neuter and words  importing  the singular  shall
      also include the plural, and vice versa.

1.3   The headings in this  Agreement are for  reference  only and shall have no
      effect on the construction of this Agreement.

1.4   Reference to Clauses, sub-clauses,  paragraphs, Schedules and Recitals are
      to Clauses, sub-clauses, paragraphs, schedules and recitals of and to this
      Agreement.

2     Payment, Option and Exercise of Option

2.1   Company shall pay to Skyepharma the sum of US$5.0 million upon the date of
      this Agreement, which payment shall be non-refundable. For the purposes of
      this  Agreement,  the  US$5.0  million  payment,  though  only  payable in
      aggregate, shall be attributed to each component part of the Technology as
      follows: Depofoam(R)injectable delivery technology US$2.0 million, topical
      delivery  technology  US$2.0  million and inhalation  delivery  technology
      US$1.0 million.

2.2   In consideration of the payment to Skyepharma of the sum of US$5.0 million
      Skyepharma hereby grants to Company an Option to acquire from Skyepharma a
      non-exclusive licence to use the Technology.

2.3   The Option may be exercised by Company  serving  notice  during the Option
      Period in writing on Skyepharma  informing it of Company's exercise of the
      Option ("the Option Notice").

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2.4   Notwithstanding  any other  provision of this  Agreement the Option Notice
      may not be served and Skyepharma  shall not be liable to grant Company the
      non-exclusive licence in respect of which the Option Notice has been given
      at any time after any of the following has occurred (upon the happening of
      which the Option shall lapse):

      2.4.1   Company  is  declared  insolvent,  makes an  arrangement  with its
              creditors or otherwise ceases or threatens to cease business;

      2.4.2   Expiry of the Option Period.

3     Licence and Manufacturing and Marketing Rights

3.1   In  consideration of the sum payable to Skyepharma by Company under Clause
      2.1 and upon  completion of the exercise of the Option,  Skyepharma  shall
      grant to Company a  non-exclusive  right  during  the Term  subject to the
      provisions of this Clause 3:

      3.1.1   to use the Technology in the Territory;

      3.1.2   to use all of the Know-How and the  Technology  Documentation  for
              the  purposes  of or in  connection  with the  utilisation  of the
              Technology;

      3.1.3   to sell or supply Products to any person in the Territory.

3.2   The Company's use of the Technology during the Term shall be restricted to
      the use of the Technology with leishmania  extract for  immunotherapy  for
      psoriasis and leishmaniasis only.

3.3   The licence to be granted to Company  upon  exercise  of the Option  shall
      bear a running  royalty of five percent (5%) of Net Sales of Products sold
      by or on behalf of Company.

3.4   The  remaining  terms of the  licence  shall be the  subject of good faith
      negotiations   between  the  parties,  but  shall  contain  those  matters
      specified in Schedule 1 substantially on the terms thereof.

3.5   Notwithstanding   anything  else  herein,   Skyepharma  shall  retain  the
      exclusive right to undertake  manufacture of all products that incorporate
      or utilize the Licensed Property.  Such manufacture shall be undertaken by
      Skyepharma  on such  reasonable  terms as the parties may agree  following
      good faith negotiations.

3.6   Company hereby grants to Skyepharma  the following  rights with respect to
      the marketing of the Base Products and/or Products on the following basis.

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      3.6.1   Should Company receive from or make to any third party an offer to
              market the Base Products and/or Products ("the Third Party Offer")
              in  all or any  part  of the  Territory,  at  any  time  prior  to
              initiation  of Phase III  clinical  trials  for the Base  Products
              and/or  the  Products  (as the case may  be),  it shall  forthwith
              notify  Skyepharma  of the identity of the third party and all the
              relevant terms of such Third Party Offer. Within fifteen (15) days
              of receipt of such  Third  Party  Offer,  Skyepharma  may  require
              Company  to engage in good  faith  negotiations  to agree an offer
              which matches in all material  respects the Third Party Offer,  or
              is otherwise  acceptable to Company.  Should the parties so agree,
              the  parties  shall  enter  an  agreement  on that  basis.  Should
              Skyepharma  not wish to or  otherwise  fail  following  good faith
              negotiations  to  match  the  Third  Party  Offer  or  come  to an
              agreement otherwise acceptable to Company, Company may complete an
              agreement  with the notified third party on the terms of the Third
              Party Offer.  Company  shall not  complete  any such  agreement on
              terms any less favourable to it than the Third Party Offer without
              first notifying  Skyepharma of such less favourable  terms,  which
              notification  shall be deemed a new Third Party Offer to which the
              provisions  of this clause shall apply in full.  For the avoidance
              of doubt,  this  clause  shall  apply to every  Third  Party Offer
              received or made by Company.

      3.6.2   Should, at any time subsequent to initiation of Phase III clinical
              trials for the Base Products  and/or the Products (as the case may
              be), Company wish to market the Base Products and/or the Products,
              or receive or make a Third  Party  Offer in all or any part of the
              Territory,  it shall forthwith  notify  Skyepharma of such wish or
              the identity of the third party and all the relevant terms of such
              Third Party  Offer.  Within  fifteen  (15) days of receipt of such
              notification, Skyepharma may require Company to exclusively engage
              in good faith  negotiations with Skyepharma for sixty (60) days to
              reach agreement acceptable to the parties. If Skyepharma elects to
              exercise its first right of  negotiation,  until the expiration of
              the 60 day period Company will not directly or indirectly  solicit
              or encourage  any  inquiries  or proposals  for, or enter into any
              discussions with any third party with respect to, the marketing of
              the Base Products  and/or  Products.  In the event  Skyepharma has
              timely  delivered  its notice and the  parties  thereafter  cannot
              reach  agreement in accordance with this Section 3.6.2 within such
              60 day period,  Company may enter into a marketing  agreement with
              respect to the Base Product and/or Products with a third party.

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4     Obligations of Confidentiality

4.1   Company  undertakes to keep secret and treat as confidential and to ensure
      that its employees, agents,  sub-contractors and licensees keep secret and
      treat as  confidential  this  Agreement and its terms and all  information
      supplied  by  Skyepharma   hereunder  and  except  as  permitted  by  this
      Agreement,  not to use any of the same  otherwise than for the purposes of
      this  Agreement and to ensure that its  employees,  agents,  subsidiaries,
      sub-contractors and licensees do likewise.

4.2   Skyepharma  undertakes  to keep  secret and treat as  confidential  and to
      ensure that its  employees,  agents,  sub-contractors  and licensees  keep
      secret  and treat as  confidential  this  Agreement  and its terms and all
      information supplied by Company hereunder and, except as permitted by this
      Agreement,  not to use any of the same  otherwise than for the purposes of
      this  Agreement and to ensure that its  employees,  agents,  subsidiaries,
      sub-contractors and licensees do likewise.

4.3   The  obligations  under  Clause  4.1  and  4.2  shall  not  extend  to any
      information, which the party seeking to disclose or use can demonstrate by
      competent written evidence:

      4.3.1   is in the public domain or generally known in the country where is
              to be  disclosed or has ceased to be secret  (otherwise  than as a
              result of a breach of this Agreement);

      4.3.2   is  required to be  disclosed  pursuant to any Order of a Court of
              competent jurisdiction;

      4.3.3   is contained in a published patent specification;

      4.3.4   is required to be disclosed pursuant to any statute, regulation or
              ordinance;

      4.3.5   is at the time  such  party is  seeking  to  disclose  or use such
              information  already in the possession of such party free from any
              obligation  of  confidentiality  and has not been acquired by such
              party in breach of any obligation of confidentiality;

      4.3.6   has been disclosed under an express  written  statement that it is
              not confidential.

5     Assignment

5.1   Company shall not assign, transfer,  charge or part with any of its rights
      under this Agreement without the prior written consent of Skyepharma.

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5.2   Company shall not in any event assign the whole or any part of its rights,
      benefits and obligations under this Agreement unless it has first procured
      the delivery to Skyepharma of an agreement by the  transferee  effectively
      undertaking to observe the obligations of Company under this Agreement.

6     Duration and Termination

6.1   Unless terminated  earlier in accordance with the following  provisions of
      this Clause 6, this Agreement  shall continue until exercise of the Option
      or expiry of the Option Period, whichever is the sooner.

6.2   A party to this Agreement shall be entitled (but not obliged) to terminate
      this  Agreement by notice in writing to the other party  having  immediate
      effect:

      6.2.1   if the other party  commits any  irremediable  material  breach of
              this Agreement;

      6.2.2   if the other party commits any remediable breach of this Agreement
              and fails to remedy such breach  within the period of 60 days from
              the service on it of a notice  specifying the breach and requiring
              it to be remedied;

      6.2.3   if a court makes an administration order with respect to the other
              party or any  composition  in  satisfaction  of the debts of, or a
              scheme of arrangement of the affairs of, the other party; or

      6.2.4   the other party becomes insolvent, has a receiver,  administrative
              receiver  or manager  appointed  over the whole or any part of its
              assets,  enters into any composition with creditors generally,  or
              has an  order  made or  resolution  passed  for it to be  wound up
              (otherwise  than in furtherance of any scheme for  amalgamation or
              reconstruction)  or undergoes any similar or equivalent process in
              any jurisdiction.

6.3   Termination  of this  Agreement  shall be without  prejudice to any rights
      accrued in favour of either party in respect any breach committed prior to
      the date of such termination by the other party.

7     Consequences of Termination

7.1   Termination of this Agreement for any reason shall not bring to an end:

      7.1.1   the confidentiality obligations on the parties; or

      7.1.2   Company's  obligation  to pay any sums  which  may be due or shall
              have accrued hereunder.

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8     Severability

      Except insofar as the context  otherwise  requires,  each provision herein
      shall be construed as  independent  of every other  provision,  and if any
      provision   hereof  is  or  becomes   partially  or  totally   invalid  or
      unenforceable  then  the  validity  and  enforceability  of the  remaining
      provisions shall not be affected.

9     Entire Agreement

      This Agreement  constitutes the whole Agreement and understanding  between
      the parties  with  respect to the  subject  matter of this  Agreement  and
      supersedes all prior discussions and agreements between the parties and/or
      their agents.

10    Variations

      No amendments to this Agreement  shall be effective  unless and until made
      in writing and signed on behalf of both parties.

11    Waiver

      A failure by either party to exercise or enforce any right  conferred upon
      it by this  Agreement  shall not be deemed to be a waiver of such right or
      operate so as to bar the exercise or enforcement thereof at any subsequent
      time or times.

12    Governing Law

      The  validity  and  performance  of this  Agreement  shall be  governed in
      accordance with New York law.

13    Notices

13.1  Any notice required to be given  hereunder shall be sufficiently  given if
      forwarded by prepaid registered airmail post.

13.2  Any  notice  sought  to be given by  either  party to the  other  shall be
      addressed  to that other at its address on page 1 of this  Agreement or at
      such other  address as may from time to time be notified by that other for
      this purpose to the party seeking to give such notice.

14    Further Assistance

      Company  shall  do,  execute  and  perform  and shall  procure  to be done
      executed and performed all such further acts, deeds,  documents and things
      as Skyepharma may reasonably

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      require  from  time to  time to give  full  effect  to the  terms  of this
      Agreement and in particular, but without limitation, Company shall, at the
      reasonable  request of Skyepharma from time to time execute and deliver to
      Skyepharma  such  assignments,   novation   agreements  and  transfers  of
      contracts,  rights,  licences and agreements hereby agreed to be assigned,
      novated or transferred as Skyepharma may reasonably require.

15    Counterparts

      This Agreement may be executed in two or more counterparts,  each of which
      shall be deemed to be an original, and which together shall constitute one
      and the same Agreement.  Unless otherwise provided in this Agreement, this
      Agreement shall become effective and be dated (and each counterpart  shall
      be dated) on the date on which a counterpart  of this  Agreement is signed
      by the last of the parties to execute this Agreement.

16    Publicity

      The  parties  agree  that  neither  of them will make any  official  press
      release,  announcement or other formal  publicity  relating to the subject
      matter of this  Agreement  without first  obtaining in each case the prior
      written consent of the other party, which consent will not be unreasonably
      withheld.

17    No Partnership

      Nothing  in this  Agreement  shall be taken to  constitute  a  partnership
      between the parties  hereto nor the  appointment  of one of the parties as
      agent of the other.

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AS WITNESS the hands of the parties to this  Agreement or their duly  authorised
representatives on the date written on page 1 of this Agreement.

SIGNED BY                           /s/                      )

for and on behalf of SKYEPHARMA INC                          )

in the presence of:-                                         )

Witness Name: /s/ A. M. Theobold

Address:  20 Pentney Road, Belham, London

Occupation:  Head of Education and Planning

SIGNED BY                           /s/                      )

for and on behalf of SKYEPHARMA HOLDING AG                   )

in the presence of:-                /s/ A.M. Theobold        )

Witness Name:  A.M. Theobold

Address:  20 Pentney Road, Belham, London

Occupation:  Head of Education and Planning

SIGNED BY                           /s/ Mike Ajnsztajn        ) Mike Ajnsztajn

for and on behalf of ASTRALIS  LIMITED                        )

in the presence of:-                                          ) /s/ Gina Tedesco

Witness Name:  Gina Tedesco

Address:  135 Columbia Turnpike Suite 301
          Florham Park, NJ 07932

Occupation:  Secretary

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                                   SCHEDULE 1

1.    Exploitation of Rights

      Company shall throughout the Territory use its best commercial  endeavours
      to promote and increase the sale of Products.

2.    Provision of the Know-How

      a.    Skyepharma  shall make  available  to Company all of the Know-How in
            existence at the  commencement of the Term and shall provide Company
            with one complete copy of the Technical Documentation.

      b.    The copyright in all Technical  Documentation provided by Skyepharma
            under this Clause shall belong to and remain  vested in  Skyepharma.
            Skyepharma hereby grants to Company a licence to make such number of
            copies  of the  same  as  Company  may  reasonably  require  for the
            exercise of its rights and the performance of its obligations  under
            this Agreement.

      c.    The Know-How and Technical Documentation to be given and provided by
            Skyepharma  under  this  Clause  shall be so given and  provided  by
            Skyepharma solely on the basis of knowledge and documentation  which
            it actually possesses at the date of this Agreement:

            i.    from its  general  experience  gained  through  operating  its
                  business; and

            ii.   as the owner of the Technology.

      d.    Company  agrees  that  except and to the extent  expressly  provided
            under the terms of this Agreement the use and  exploitation  of, and
            reliance on, the  Technology  and the  Know-How by Company  shall be
            entirely at its own risk and Company  agrees that  Skyepharma  shall
            not be  responsible  or  liable  for any loss or  damage  to, or any
            claims made by any third party against Company by reason of any such
            use, exploitation or reliance.

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3.    Royalties

      a.    In  consideration  of the licence and other rights hereby granted to
            Company  under  Clause  3,  Company  shall  pay  to  Skyepharma  the
            following sums in the manner and by the instalments set out below:

            i.    a  running  royalty  of  five  percent  (5%) of Net  Sales  on
                  Products sold by or on behalf of Company.  The minimum royalty
                  targets to be obtained by Company in each year shall be agreed
                  between the parties;

            ii.   royalties  shall be paid by Company  within eight (8) weeks of
                  the  end of  each  calendar  year  and  Company  shall  supply
                  Skyepharma with detailed  calculations of the royalties due in
                  accordance herewith together with such payment;

            iii.  Skyepharma or its duly authorised  representatives  shall have
                  the  right to  inspect  and  audit  and to take  copies  of or
                  extracts from any accounts and any other  documents,  records,
                  receipts  or  insurances  relating to the  calculation  of the
                  royalties.  If on any such  inspection or audit  Skyepharma or
                  its  duly   authorised   representatives   can  demonstrate  a
                  discrepancy  of more than 5% between the  royalties as paid to
                  Skyepharma and the actual royalties  payable to Skyepharma for
                  the same period, Company shall (without prejudice to any other
                  rights which Skyepharma may have) pay to Skyepharma the amount
                  of such discrepancy forthwith and reimburse Skyepharma for all
                  reasonable  costs incurred in conducting  such  inspection and
                  audit.

4.    Liability of Skyepharma for Defaults

      a.    In no event shall Skyepharma its employees,  agents,  consultants or
            contractors  (or any of them) have any liability to Company for (and
            Company shall keep Skyepharma indemnified against) any consequential
            loss,  consequential  damage  and  any  loss of  profits,  business,
            revenue, goodwill or anticipated savings suffered by Company and any
            claim  made  against  Company  by any third  party  caused  (whether
            directly or indirectly) by or arising from:

            i.    any   failure  of   Skyepharma   (except  a   deliberate   and
                  unjustifiable  failure) to provide,  or any delay in providing
                  any  of  the   Know-How,   the   Technology,   the   Technical
                  Documentation  or  any  of  the  advice  or  assistance  to be
                  provided by Skyepharma under this Agreement;

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            ii.   any defect in, or  inadequacy  of,  any of the  Know-How,  the
                  Technology  or  the  Technical  Documentation  or  any  of the
                  advice,  assistance and services  provided by Skyepharma under
                  this Agreement;

            iii.  any  claim  that  the  use or  exploitation  of  the  Licensed
                  Property by Company infringes the intellectual property rights
                  of any third party;

            iv.   any default of Skyepharma or Skyepharma's  employees,  agents,
                  consultants or  contractors in connection  with or in relation
                  to the subject matter of this Agreement.

5.    Improvements

      a.    Each party ("the inventing  party") shall forthwith  disclose to the
            other in  confidence  and in such  detail  as that  other  party may
            reasonably  require all  Improvements  that the inventing  party may
            develop  or  acquire  during  the  Term.  Subject  to the  following
            provisions,  all Improvements  shall vest in and remain the property
            of Skyepharma,  and Company shall do all things reasonably necessary
            at Skyepharma's  cost and request to vest ownership in Skyepharma of
            those Improvements developed or acquired by Company.

      b.    All Improvements  shall be deemed comprised in the Licensed Property
            and shall be subject to the licence thereof.

      c.    To the  extent  that  any  Improvement  is  solely  of use  with  or
            application to the Base Product,  commencing  upon the expiry of the
            Term,  Company may require that Skyepharma  grant to it a licence to
            such  Improvement  exclusively  for use with the Base Product,  such
            licence to otherwise be on such commercial  terms as the parties may
            agree.

6.    No Warranties Without Authority

Company shall make no  statements,  representations  or claims and shall give no
warranties to any customer in respect of Products  supplied to the customer save
such  as are  implied  by  law  or may  have  been  specifically  authorised  by
Skyepharma.  Skyepharma shall be entitled to withhold such authorisation only on
the grounds that the  statement,  representation,  warranty or claim in question
refers or relates  (directly or indirectly,  expressly or by implication) to the
Licensed  Property  and  that  (by  reason  of  the  making  of  the  statement,
representation  or claim or the giving of the warranty in  question)  Skyepharma
might be exposed to  liability  for  defects in the  Products or  liability  for
death,  injury  or loss or damage  caused  by the  Products  or  defects  in the

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Products.   Company   undertakes  to  keep  Skyepharma   fully  and  effectually
indemnified  against  all  claims,  demands,  losses,  expenses  and costs which
Skyepharma may incur as a result of any breach by Company of this Clause.

7.    Indemnity

      a.    Subject  always to the  provisos  set out below in this  sub-clause,
            Company  undertakes  to  indemnify   Skyepharma  its  directors  and
            employees and keep them fully and  effectively  indemnified  against
            any and all  losses,  claims,  damages,  costs,  charges,  expenses,
            liabilities,  demands, proceedings and actions which they (or any of
            them) may sustain or incur,  or which may be brought or  established
            against  them  (or any of  them)  as a  result  (whether  direct  or
            indirect, and whether wholly or in part) of or arising from:

            i.    any action or omission of Company or its  employees  agents or
                  contractors  in  the  performance  of its  obligations  or the
                  exercise of any of its rights under this Agreement;

            ii.   the death of or personal  injury to any person and/or any loss
                  or  damage to any  property  and/or  any other  loss or damage
                  wholly or partly caused  (whether  directly or  indirectly) by
                  reason  of  Company  selling,  supplying,  offering  for sale,
                  offering to supply, agreeing to sell and/or agreeing to supply
                  any Product which:

                  1.    is not of merchantable quality; or

                  2.    is defective in any respect; or

                  3.    is or may be  injurious  to the  health or safety of any
                        person using or handling the Product in question for any
                        reasonably foreseeable purpose; or

                  4.    is or may be  injurious  to the  property  of any person
                        referred to in paragraph 8.a.ii;

provided  that the  indemnity  contained in this Clause 8 shall not apply to any
claims,  demands or proceedings brought by any third party alleging that the use
by  Company  of  the  Licensed  Property  or  any  part  thereof  infringes  any
Intellectual  Property of that third party and the indemnity in paragraph 8.a.ii
shall not apply to any death,  personal injury or loss or damage which is caused
by, or arises  from,  any defect  which is  inherent  in the  Technology  or the
Know-How.

                                       14
<PAGE>

      b.    If under this Agreement  Skyepharma  shall exercise its right to use
            and exploit an Improvement  developed or acquired by Company to make
            or have made any product,  Skyepharma  undertakes (subject always to
            the provisos set out below in this sub-clause) to indemnify  Company
            its  directors  and  employees  and keep them fully and  effectively
            indemnified  against any and all  losses,  claims,  damages,  costs,
            charges,  expenses,  liabilities,  demands,  proceedings and actions
            which they (or any of them) may  sustain  or incur,  or which may be
            brought  or  established  against  them (or any of them) as a result
            (whether  direct or indirect,  and whether  wholly or in part) of or
            arising  from the death of or personal  injury to any person  and/or
            any loss or damage to any  property  and/or any other loss or damage
            wholly or partly caused  (whether  directly or indirectly) by reason
            of Skyepharma  selling,  supplying,  offering for sale,  offering to
            supply,  agreeing to sell and/or agreeing to supply any such product
            which:

            i.    is not of merchantable quality; or

            ii.   is defective in any respect; or

            iii.  is or may be  injurious  to the health or safety of any person
                  using or handling the product in question  for any  reasonably
                  foreseeable purpose; or

            iv.   is or may be injurious to the property of any person  referred
                  to in this sub-clause;

provided that the indemnity  contained in this sub-clause shall not apply to any
claims,  demands or proceedings brought by any third party alleging that the use
or exploitation  by Skyepharma of such rights or any part thereof  infringes any
Intellectual  Property  of that  third  party nor  shall it apply to any  death,
personal injury or loss or damage which is caused by, or arises from, any defect
which is inherent in that Improvement.

8.    Obligations of Confidentiality

      a.    Company  undertakes to keep secret and treat as confidential  and to
            ensure that its  employees,  agents,  sub-contractors  and licensees
            keep secret and treat as confidential  all information in respect of
            the  Licensed  Property  (including   additions,   and  Improvements
            thereto),  the  Technical  Documentation,  Know-How  and  all  other
            information,   documentation,   materials  and  advice  supplied  by
            Skyepharma hereunder and except as permitted by this Agreement,  not
            to use any of the  same  otherwise  than  for the  purposes  of this
            Agreement and to ensure that its  employees,  agents,  subsidiaries,
            sub-contractors and licensees do likewise.

                                       15
<PAGE>

      b.    Skyepharma  undertakes to keep secret and treat as confidential  all
            technical and business  information and  documentation and all other
            materials  supplied to  Skyepharma by Company for the purposes of or
            in  the  course  of  implementing  this  Agreement  and,  except  as
            permitted by this  Agreement,  not to use any of the same  otherwise
            than for the purposes of this Agreement.

      c.    The  obligations  under  Clause  8.a and 8.b shall not extend to any
            information,  Improvements,  Technical  Documentation,  Know-How  or
            other documentation or advice which the party seeking to disclose or
            use can demonstrate by competent written evidence:

            i.    is in the  public  domain or  generally  known in the  country
                  where is to be disclosed or has ceased to be secret (otherwise
                  than as a result of a breach of this Agreement);

            ii.   is required to be  disclosed  pursuant to any Order of a Court
                  of competent jurisdiction;

            iii.  is contained in a published patent specification;

            iv.   is  required  to  be   disclosed   pursuant  to  any  statute,
                  regulation or ordinance;

            v.    is at the time such party is seeking to  disclose  or use such
                  documentation,  information,  Improvements, Know-How or advice
                  already  in  the  possession  of  such  party  free  from  any
                  obligation  of  confidentiality  and has not been  acquired by
                  such party in breach of any obligation of confidentiality;

            vi.   has been disclosed under an express written  statement that it
                  is not confidential.

      d.    The  following  acts  shall  not be  deemed  to be a  breach  of the
            obligations  contained in Clause 8.a in relation to any information,
            Improvements,    Know-How,    Technical   Documentation   or   other
            documentation or advice:

            i.    disclosure occurring by its use in the manufacture of products
                  using the Technology and/or the Improvements;

            ii.   disclosure  occurring  in the  ordinary  course of the sale of
                  products   manufactured   using  the  Technology   and/or  the
                  Improvements;

                                       16
<PAGE>

            iii.  disclosure by the receiving party to its customers or users or
                  repairers of products manufactured using the Technology and/or
                  the  Improvements or to  sub-contractors  or  manufacturers of
                  such products or component parts;

            iv.   disclosure by  reproduction of drawings as may be necessary in
                  advertising  literature,  instruction  books and  spare  parts
                  lists;

provided that in all the above cases any  disclosure has been made bona fide and
to no greater degree than was necessary in the  circumstances and with a view to
promoting the sale or use of products  manufactured  using the Technology and/or
the Improvements.

      e.    Subject as provided  herein,  any  information  communicated  to one
            party hereunder may be disclosed by that party to any sub-contractor
            appointed to manufacture,  repair or service  products  manufactured
            using the  Technology  provided that the  disclosing  party procures
            that such disclosure is limited to such officers or employees of the
            sub-contractor  as  cannot  properly  fulfil  their  duties  to  the
            sub-contractor  without such disclosure and who undertake in writing
            to keep such information confidential.

9.    Infringements

      a.    Skyepharma and Company shall notify each other  forthwith in writing
            of any  infringement or suspected or threatened  infringement in the
            Territory  of any of the rights  comprising  the  Licensed  Property
            which shall at any time come to knowledge of either of them.

      b.    Skyepharma  shall be  entitled  in its  sole  discretion  to  decide
            whether  to take any steps  (including  any  proceedings)  as may be
            necessary to prevent or restrain any  infringement  in the Territory
            by a  third  party  of any of the  rights  comprising  the  Licensed
            Property.  In the event that Skyepharma  decides to take steps under
            this Clause, Skyepharma shall have control over and shall conduct at
            its own cost any such action as it deems fit  provided  that Company
            shall provide or procure the provision of such  assistance in taking
            such  steps   (including  any   proceedings)  as  Skyepharma   shall
            reasonably require. Skyepharma shall be entitled to retain any award
            of damages or other  compensation  obtained as a result of any steps
            (including  any  proceedings)  taken by Skyepharma  pursuant to this
            Clause.

      c.    If Skyepharma  shall decide not to take any steps pursuant to Clause
            9.b, Company shall be entitled to take action to prevent or restrain
            such infringement subject always to Company indemnifying  Skyepharma
            against  any claim or  counter  claim

                                       17
<PAGE>

            that may be brought against Skyepharma in connection with or arising
            from any  actions so taken by  Company.  In the event  that  Company
            decides  to  take  steps  under  this  Clause,   Company   shall  be
            responsible  for all costs and fees  incurred by it in the taking of
            such  steps  (including  any   proceedings).   Skyepharma  shall  at
            Company's  cost provide or procure the provision of such  assistance
            as  Company  shall   reasonably   require  and  subject  to  Company
            reimbursing  Skyepharma for such costs, Company shall be entitled to
            retain  any award or  damages or other  compensation  obtained  as a
            result of any such steps (including any proceedings)  being taken by
            Company but only to the extent that such damages or  compensation is
            awarded in respect of any infringement in the Territory.

      d.    If any  proceedings  are brought against Company on the grounds that
            the  use  or  exploitation  by  Company  of  the  Licensed  Property
            infringes  the rights of any third party,  Company  shall  forthwith
            notify  Skyepharma  of the same.  If  Skyepharma  shall so  require,
            Company shall surrender  control of the defence of such  proceedings
            to the exclusive  control of  Skyepharma.  If the acts of Company in
            respect of which the  proceedings  have been brought are not such as
            to constitute a breach of this  Agreement and are not acts for which
            Company would  require the licence or consent of Skyepharma  falling
            outside  the terms of the  licences  granted  under this  Agreement,
            then:

            i.    Skyepharma  shall  indemnify  and  keep  indemnified   Company
                  against all damages and all costs (including all taxes payable
                  on them) which may be awarded  against  Company as a result of
                  the  proceedings,  or  which  may  be  agreed  to be  paid  in
                  settlement of the proceedings (where that settlement has first
                  been proposed or approved in writing by Skyepharma);

            ii.   Skyepharma  shall  indemnify  and  keep  indemnified   Company
                  against  all  proper   costs  and  expenses   (including   all
                  reasonable fees and disbursements of lawyers, patent attorneys
                  and expert  witnesses)  incurred by Company in  defending  the
                  proceedings; and

10.   Sub-Licences

      a.    Company  shall not grant to any  person  any  licence,  sub-1icence,
            permission  or  authorisation   (referred  to  collectively  in  the
            remainder  of this  Clause 10 as a  "sub-licence")  of, out of or in
            relation to any rights granted to it under this Agreement unless the
            prior written consent of Skyepharma is obtained in respect of:

            i.    the person to whom the sub-licence is to be granted; and

                                       18
<PAGE>

            ii.   the terms of such sub-1icence.

For the purpose of obtaining  Skyepharma's  consent to any  sub-1icence  Company
shall  submit  to  Skyepharma  a  written  copy of the  proposed  terms  of such
sub-licence.  Company shall keep Skyepharma fully informed of all  sub-licensing
negotiations and shall at Skyepharma's request,  allow Skyepharma to participate
fully in any such negotiations.

      b.    Any  sub-licences  granted by Company in accordance with Clause 10.a
            shall be  restricted to the use of the  Technology  and the Know-How
            within the  Territory in the field of use of the licence  granted to
            the Company hereunder.

      c.    Without  prejudice  to  Clause  10.a if  Skyepharma  shall  give its
            written  consent to the grant of a  sub-licence  under  Clause  10.a
            Company  shall,  in  respect  of  each  such  sub-licence,   pay  to
            Skyepharma a sum to be agreed on the date that each  sub-licence  is
            approved by  Skyepharma.  Company shall also pay to  Skyepharma,  in
            respect of each sub-licence,  100% of the royalties which would have
            been  payable  under Clause 3 in respect of each Product sold by the
            sub-licensee  which  utilises the  Technology as if Company had sold
            the Product itself.  Such royalties shall be paid in the same manner
            and by the same instalments as set out in Clause 3.

      d.    The term of any sub-licence granted by Company shall expire at least
            one  day  before  the  expiration  of the  effective  Term  of  this
            Agreement.

      e.    Company shall be responsible  to Skyepharma  for the  enforcement of
            the terms of any  sub-licence  and for  inspecting  the accounts and
            records kept by the sub-licensee.  It shall be a term of each of the
            sub-licences  that the sub-licensee  shall allow Skyepharma to visit
            any sub-licensee and to inspect all of the  sub-licensee's  accounts
            and records  relevant to calculation of amounts  payable to Company.
            Company  shall at the  request  of  Skyepharma  appoint a  qualified
            person  jointly  with  Skyepharma  to  inspect  the  records  of the
            sub-licensee  on behalf of both  Skyepharma  and Company and Company
            shall  supply  Skyepharma  with a copy  of any  report  prepared  in
            relation to such inspection.

                                       19
<PAGE>

                                   Schedule I

                           (Minimum Royalty Payments)

                                 (to be agreed)

Calendar Year

Year 1

Year 2

Year 3

Year 4

thereafter

NWK3: 659812.01

                                       20OptimumCare Corporation

 

EXHIBIT 10.140

MANAGEMENT SERVICES AGREEMENT

THIS MANAGEMENT SERVICES AGREEMENT (“Agreement”) is made and entered into as of
June 16, 2002 (the “Effective Date”), by and between OptimumCare Corporation, a
Delaware Corporation (“Manager”), and La Palma Intercommunity Hospital
(“Client”). This Agreement is made with reference to the following facts:

	A.	  	Client is licensed to operate a psychiatric inpatient and outpatient
hospitalization program which is located at 7901 Walker Street, La Palma,
CA 90623.
	 
	B.	  	Manager is experienced in marketing and unit management in connection
with mental health care services and possesses the skills and experience
necessary to provide such marketing and unit management services for and
to the Client.
	 
	C.	  	Client desired to retain Manager, and Manager desires to be retained,
on the terms and conditions set forth in this Agreement.
	 
	 	  	The parties agree as follows:
	 
	1.	  	MANAGER’S RESPONSIBILITIES:
	 
	 	  	Client hereby retains Manager, and Manager hereby accepts and agrees to
such retention, on the terms and conditions set forth in this Agreement.

	 	 	 
	1.1.	 	
Responsibilities. Manager shall provide unit management
services and provide community outreach services to the Client in accordance with this
Agreement (the Services”) as mutually agreed by Manager and Client. The Services shall
include the following management services and community outreach activities to market
the Client in the service area:

	 
	1.1.1 Manager shall provide, at Manager’s expense, one Community Liaison
to Market the Client’s service with the intent of maximizing utilization of
the Client’s service. Community Liaison shall work within the service area with the
purpose of providing community outreach in order to market the service. The
Client shall have the right to approve the individual selected
	 
	1.1.2 Manager shall provide, at Manager’s expense, one Program
Administrator experienced in management of partial and inpatient hospitalization
programs. The Client shall have the right to approve the individual selected

	 	 	 
	1.2.	 	Level of Service. Manager will perform the Services in
accordance with its policies and procedures and any other policies and procedures that may be
established from time to time by mutual agreement.

 

 

	2.	  	COMPENSATION:
	 
	 	  	As compensation for the Services, Client shall pay Manager the following:

	 	 	 	 	 	 	 
	2.1	Compensation. Client shall pay Manager a monthly fee of
Twenty-Five Thousand Dollars ($25,000) for the Services performed
by Manager (“Management Fee”). On or before eighth (8th) working
day of each month, Manager shall send Client an invoice for the
Management Fee. Client shall pay such invoices before the end of
the day of the 15th of the month in which the invoice was received.
Client shall pay Manager interest calculated at the current prime
rate plus one percent (1%) on all delinquent Management fees. In
the event Client fails to pay the Management Fee when due, Manager
may immediately cease providing Services.
	 
	2.2	Reports. Upon Client’s request, Manager shall prepare and
submit a report of the specific nature of Services provided by
Manager.

	3.	  	FACILITY RESPONSIBILITIES:
	 
	 	  	Client shall provide the following to Manager for the term of this
Agreement:

	 	 	 	 	 	 	 
	3.1	Office space as reasonably required by Manager.
	 
	3.2	Office equipment as reasonably required by Manager, including,
without limitation telephone service and a personal computer and
modem meeting Manager’s specifications.
	 
	3.3	Clerical and secretarial services as reasonably required by
Manager.
	 
	3.4	Office supplies as reasonably required by Manager.

	4.	  	TERM AND TERMINATION:

	 	 	 	 	 	 	 
	4.1	Term. The term of this Agreement shall commence at 12:01 a.m.
on the effective date and shall continue for a term of one (1)
year, unless sooner terminated in accordance with the provisions of
this Agreement. Thereafter, this Agreement shall renew for
consecutive one (1) year terms unless a party gives the other party
written notice of its intention not to renew this Agreement at
least ninety (90) days before the expiration of the current term.
	 
	4.2	With Cause Termination. A Party may terminate this Agreement
immediately for cause upon delivery of written notice to the other
party. For purposes of this

 

 

	 	 	 	 	 	 	 
	 	Agreement, “cause” means that any of the following events occurred:
	 
	 	(a)	A
party has defaulted in the performance of a material obligation under
this Agreement for a period of 30 days after delivery of written
notice to the other party specifying in detail the nature of the default;
provided however, that if the Client defaults in the payment of the
Management Fee, the period shall be five (5) days.

The parties agree to the aforementioned Consulting Agreement, and all of its
terms and conditions. Both parties hereby signify their agreement by affixing
their duly authorized signatures.

For La Palma Intercommunity Hospital

Paul Wafer, Chief Executive Officer

For OptimumCare Corporation

Edward A. Johnson, Chairman of the Board & CEO

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00041-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00041-of-00352.parquet"}]]