Document:

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                                                                    EXHIBIT 10.1

     THIS AGREEMENT, BETWEEN WILLIAM J. ADAMS, JR., with offices at 3 Pond View
Lane, Flanders, New Jersey 07836, (hereinafter referred as "Landlord"):

     and    ADAMS LABORATORIES, INC.
            14801 SOVEREIGN ROAD
            FT. WORTH, TEXAS 76155

     as Tenant/Lessee

Witnesseth: That said Landlord has let unto the said Tenant and the said Tenant
has hired from the said Landlord, the following premises: Approximately 13,500
square feet, in the building located at Colonial Court, 425 Main Street,
Chester, New Jersey 07930 for the term of ten (10) years four (4) months to
commence on April 1, 2004 and to end on August 31, 2014, to be used and occupied
only for Professional Offices. Except as otherwise set forth herein, the
obligations of the Landlord and Tenant shall commence on the date that Tenant
takes occupancy of the Premises for the purposes of commencing Tenant's
improvements therein upon the conditions and covenants following:

     1st: Gross Rent. The Tenant shall pay to the Landlord during the term
hereof, Gross Rent, which includes Taxes and Insurance, as hereinafter provided
in monthly installments hereinafter specified, in advance, on the first day of
each and every month throughout the entire term of this Lease and any renewals.
The first month's rent shall be due on September 1, 2004, except that such date
shall be extended on a day-for-day basis for each day after June 1, 2004 that
Landlord fails to complete Landlord's Work, and the Tenant shall then pay the
full monthly Gross Rent beginning in the second month and thereafter. The Gross
Rent schedule is as follows:

<TABLE>
<CAPTION>
YEAR     AMT. PER S/F           MONTHLY AMT. DUE          ANNUAL AMOUNT
----     ------------           ----------------          -------------
<S>      <C>                    <C>                       <C>
  1         $25.00                  $28,125.00             $337,500.00
  2         $25.15                  $28,293.75             $339,525.00
  3         $30.30                  $34,087.50             $409,050.00
  4         $30.46                  $34,267.50             $411,210.00
  5         $35.63                  $40,083.75             $481,005.00
  6         $35.80                  $40,275.00             $483,300.00
  7         $33.98                  $38,227.50             $458,730.00
  8         $35.00                  $39,375.00             $472,500.00
  9         $36.05                  $40,556.25             $486,675.00
  10        $37.14                  $41,782.50             $501,390.00
</TABLE>

     2nd: COMMENCEMENT DATE. The obligations of the Landlord and Tenant shall
commence on the date Tenant takes occupancy of the Premises for purposes of
commencing Tenant's improvements therein except for the Tenant's obligation to
pay rent

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which, as set forth in Paragraph 1st, shall commence on September 1, 2004 or
such other date as set forth in Paragraph 1st.

     3rd: LANDLORD'S WORK. The work to be performed by Landlord within the
Premises shall consist solely of those items specified in Exhibit A (hereinafter
"Landlord's Work"). Landlord shall, subject to the terms hereof, at its sole
cost and expense, diligently commence the Landlord's Work and complete the same
on or before June 1, 2004. Landlord's Work shall be performed in a good and
workmanlike manner with good material and in compliance with applicable laws,
codes, and ordinances. Upon Landlord's completion of Landlord's Work, Landlord
shall provide Tenant with a written notice of that event (hereinafter "Notice of
Completion"). Following receipt of the Notice of Completion, or if authorized by
Landlord prior to such receipt, Tenant shall be permitted to commence its Fit Up
(the "Fit Up Period"). During the duration of Tenant's Fit Up Period, Tenant
shall use protective coverings for the walls, floors and doors of all elevators.
Tenant shall be solely liable for ,and repair at its own cost and expense, all
damage to the elevators which occurs during the Fit Up Period.

     4th: That the Tenant shall take good care of the premises and shall at the
Tenant's own cost and expense keep clean and maintain, at regular intervals, the
interior of the demised premises, and make all repairs to the interior of the
demised premises and at the end or other expiration of the term, shall deliver
up the demised premises in good order or condition, damages by the elements and
Acts of God excepted.

     5th: That the Tenant shall promptly execute and comply with all statutes,
ordinances, rules, orders, regulations and requirements of the Federal, State
and City Government and of any and all their Departments and Bureaus applicable
to said premises, for the correction, prevention, and abatement of nuisances,
violations or other grievances, in, upon or connected with said premises during
said term; and shall also promptly comply with and execute all rules, orders,
and regulation of the Board of Fire Underwriters, or any other similar body, for
the prevention of fires, at the Tenant's own cost and expense.

     6th: That in case the Tenant shall fail or neglect to comply with the
aforesaid statutes, ordinances, rules, orders, regulations and requirements or
any of them, or in case the Tenant shall fail or neglect to make any necessary
repairs, then as set forth in paragraph #10, the Landlord or the Landlord's
Agents may enter said premises and make said repairs and comply with any and all
of the said statutes, ordinances, rules, orders, regulations or requirements, at
the cost and expense of the Tenant and in case of the Tenant's failure to pay
therefor, the said cost and expense shall be added to the next month's rent and
shall be due and payable as such, or the Landlord may deduct the same from the
balance of any sum remaining in the Landlord's hands. This provision is in

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addition to the right of the Landlord to terminate this lease by reason of any
default on the part of the Tenant, including Tenant's failure to remit the
foregoing costs and expense as additional rent.

     7th: The tenants shall not, without the written consent of the Landlord,
which shall not be unreasonably withheld, assign or sublease the premises or any
part thereof, and shall not mortgage this lease.

     8th: That no alterations, additions, or improvements shall be made in or to
the premises, and no climate regulating, air conditioning, cooling, heating or
sprinkler systems, television or radio antennas, heavy equipment, apparatus and
fixtures shall be installed in or attached to the premises without the consent
of the Landlord in writing, which shall not be unreasonably withheld, under
penalty of damages and forfeiture, and all additions and improvements or systems
installed in or attached to the premises by the Tenant shall belong to the
Landlord.

     9th: In case of damage, by fire or other cause, to the building in which
the leased premises are located, without the fault of the Tenant or of Tenant's
agent or employees, if the damage is so extensive as to amount practically to
the 50% destruction of the leased premises or of the building, or if the
Landlord shall within a reasonable time decide not to rebuild, this lease shall
cease and come to an end, and the rent shall be apportioned to the time of the
damage. In all other cases where the leased premises are damaged without the
fault of the Tenant or of Tenant's agents or employees the Landlord shall repair
the damage with reasonable dispatch only after Landlord is provided notice, as
set forth in paragraph #21 herein, of damage, and if the damage has rendered the
premises untenantable, in whole or in part, there shall be an apportionment of
the rent until the damage has been repaired. In determining what constitutes
reasonable dispatch consideration shall be given to delays caused by strikes,
adjustments of insurance and other causes beyond the Landlord's control. In no
event however, shall the provisions of this clause become effective or be
applicable, if the fire or other casualty and damage shall be the result of the
carelessness, negligence or improper conduct of the Tenant or the Tenant's
agents, employees, guests, licensees, invitees, subtenant, assignees or
successors. In such case, the Tenant's liability for the payment of the rent and
the performance of all covenants, conditions, and terms of this lease shall
continue and the Tenant shall be liable to the Landlord for the damage and loss
suffered by the Landlord. If the Tenant shall have been insured against any of
the risks covered by this paragraph, then the proceeds of such insurance shall
be paid over to the Landlord to the extent of the Landlord's costs and expenses
to make the repairs, and such insurance carriers shall have no resource against
the Landlord for reimbursement, if Tenant, its agents, servants, employees,
invitees, or guests is responsible for damage.

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     10th: That said Tenant agrees that the said Landlord and Landlord's Agents,
and other representatives, shall have the right to enter into and upon said
premises, or any part thereof, at all reasonable hours upon reasonable notice
for the purpose of examining the same or making such repairs or alterations
therein as may be necessary for the safety and preservation thereof.

     11th: The Tenant also agrees to permit the Landlord or Landlord's Agents to
show the premises to persons wishing to hire or purchase the same; and the
Tenant further agrees that during the four months next prior to the expiration
of the term, the Landlord or Landlord's agents shall have the right to place
notices on the front of said premises, or any part thereof, offering the
premises "To Let" or "For Sale," and the Tenant hereby agrees to permit the same
to remain thereon without hindrance or molestation.

     12th: That if the said premises, or any part thereof, shall become vacant
during the said term, or should the Tenant be evicted by summary proceedings or
otherwise, the Landlord or Landlord's representatives may re-enter the same and
either by force or otherwise, without being liable to prosecution therefor;
re-let the said premises as the agent of the said Tenant and receive the rent
thereof; applying the same, first to the payment of such expenses as the
Landlord may be put to in re-entering and then to the payment of the rent due by
these presents; the balance (if any) to be paid over to the Tenant who shall
remain liable for any deficiency.

     13th: That the Tenant shall neither encumber, nor obstruct the sidewalk in
front of, entrance to or halls and stairs of said building, nor allow the same
to be obstructed or encumbered in any manner.

     14th: That the Tenant shall neither place, nor cause, nor allow to be
placed, any sign of signs of any kind whatsoever at, in or about the entrance to
said premises nor any other part of same except in or at such place or places as
may be indicated by the said Landlord and consented to by in writing. Landlord
hereby consents to a sign, which complies with local ordinance, for Tenant,
which will be placed at the entrance of the premises, and which sign will be
provided by Landlord. And in case the Landlord or Landlord's representatives
shall deem it necessary to remove any such sign or signs in order to paint or
make any other repairs, alterations or improvements in or upon said premises,
building or directory wherein same is situated or any part thereof, the Landlord
shall have the right to do so, providing the same be removed and replaced at the
Landlord's expense wherever the said repairs, alterations or improvements shall
have been completed.

     15th: The Landlord shall not be liable for any damage or injury which may
be sustained by the Tenant, or any other person, as a consequence of the
failure, breakage,

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leakage or obstruction of the water, plumbing, steam, sewer, waste or soil
pipes, roof, drains, leaders, gutters, valleys, downspouts or the like or of the
electrical, gas, power, conveyor, refrigeration, sprinkler, air conditioning or
heating systems, elevators hoisting equipment; or by reason of the elements; or
resulting from the carelessness, negligence or improper conduct on the part of
any other Tenant or this or any other Tenant's agents, employees, guests,
licensees, invitees, subtenants, assignees or successors; or attributable to any
interference with, interruption of or failure, beyond the control of the
Landlord, of any services to be furnished or supplied by the Landlord.

     16th: That if default be made in any of the covenants herein contained,
then it shall be lawful for the said Landlord to re-enter the said premises, and
the same to have again, re-possess and enjoy.

     17th: That this lease shall not be a lien against said premises in respect
to any mortgages that are now on or that hereafter may be place against said
premises, and that the recording of such mortgage or mortgages shall have
preference and precedence and be superior and prior in lien of this lease
irrespective of the date of recording and the Tenant agrees to execute any
instrument without cost, which may be deemed necessary or desirable to further
effect the subordination of this lease to any such mortgage or mortgages, and
Tenant's refusal, for any reason, to execute such instruments shall entitle the
Landlord, or the Landlord's assigns and legal representatives to the option of
canceling this lease without incurring any expense or damage, and the term
hereby granted is expressly limited accordingly.

     18th: The Tenant shall deposit with the Landlord the sum of *$56,250.00 as
security for the payment of the rent and the full and faithful performance by
the Tenant of the covenants and conditions of this Lease. The security deposit
shall be returned to the Tenant, without interest, after the expiration of the
term of this Lease, provided that the Tenant has fully and faithfully performed
all such covenants and conditions and is not in arrears in rent. During the term
of this lease, the Landlord may, if the Landlord so elects, after giving written
notice to Tenant, have recourse to such security, to make good any default by
the Tenant, in which event the Tenant shall, on demand, promptly restore said
security to its original amount and Tenant's failure to do so will be deemed an
event of default permitting Landlord to effect all rights and remedies set forth
herein. In the event of a bona fide sale, subject to this lease, the Landlord
shall have the right to transfer the security to the vendee for the benefit of
the Tenant and the Landlord shall be considered released by the Tenant from all
liability for the return of such security; and the Tenant agrees to look to the
new Landlord solely for the return of the said security, and it is agreed that
this shall apply to every transfer or assignment made of the security to a new
Landlord. The security deposited under this lease shall not be mortgaged,
assigned or encumbered by the Tenant without the written consent of the
Landlord.

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     *SECURITY IN THE AMOUNT OF $56,250.00 IS DUE UPON THE SIGNING OF THIS
LEASE.

     19th: It is expressly understood and agreed that if for any reason it shall
be impossible to obtain fire and other hazard insurance on the buildings and
improvements on the demised premises in an amount, and in the form, and in fire
insurance companies acceptable to the Landlord the Landlord may, if the Landlord
so elects, at any time thereafter terminate this lease and the term thereof, on
giving to the Tenant three days' notice in writing of Landlord's intention so to
do and upon the giving of such notice, this lease and the term thereof, shall
terminate and come to an end.

     20th: It is expressly understood and agreed that in case the demised
premises shall be deserted or vacated, or if default be made of any provision of
this lease, or if, without the consent of the Landlord, the Tenant shall sell,
assign, or mortgage this lease or if default be made in the performance of any
of the covenants and agreements in this lease contained on the part of the
Tenant to be kept and performed, or if the Tenant shall fail to comply with any
of the statutes, ordinances rules, orders, regulations, and requirements of the
Federal, State and City Government or of any and all their Departments and
Bureaus, applicable to said premises, or if the Tenant shall file or there be
filed against Tenant a petition in bankruptcy or arrangement, or Tenant be
adjudicated a bankrupt, or make an assignment for the benefit of creditors or
take advantage of any insolvency act, the Landlord may, if the Landlord so
elects, at any time thereafter terminate this lease and the term hereof, on
giving to the Tenant five days' notice in writing of the Landlord's intention so
to do, and this lease and the term hereof shall expire and come to an end on the
date fixed in such notice as if the said date were the date originally fixed in
this Lease for the expiration hereof. Such notice may be given by mail to the
Tenant addressed to the demised premises.

     21st: All notices required under the terms of this lease shall be given and
shall be deemed complete by mailing such notices by Certified Mail, Return
Receipt Requested to the address of the parties as shown at the beginning of
this lease, or to such other address as may be designated in writing, which
notice of change of address shall be given in the same manner.

     22nd: Tenant shall not occupy or use the lease premises, nor permit the
same to be occupied or used for any purpose other than as defined in this lease,
nor for any purpose deemed unlawful, disreputable, or extra hazardous, on
account of fire or other casualty.

     23rd: If after default in payment of rent or violation of any other
provision of this lease, or upon the expiration of this lease, the Tenant moves
out or is dispossessed and fails to remove any trade fixtures or other property
prior to such said default, removal, expiration of lease, or vacates the demised
premises prior to the issuance of the final order or

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execution of the warrant, then and in that event, the said fixtures and property
shall be deemed abandoned by the said Tenant and shall become the property of
the Landlord.

     24th: The failure of the Landlord to insist upon strict performance of any
of the covenants or condition of this lease or to exercise any option herein
conferred in any one or more instances, shall not be construed as a waiver or
relinquishment for the future of any such covenants, conditions or options, but
the same shall be and remain in full force and effect.

     25th: In the event that the relation of the Landlord and Tenant may cease
or terminate by reason of the re-entry of the Landlord under the terms and
covenants contained in this lease or by the ejectment of the Tenant by summary
proceedings or otherwise, or after the abandonment of the premises by the
Tenant, it is hereby agreed that the Tenant shall remain liable and shall pay in
monthly payment the rent which accrues subsequent to the re-entry by the
Landlord, and the Tenant expressly agrees to pay as damages for the breach of
the covenants herein contained, the difference between the rent reserved and the
rent collected and received, if any, by the Landlord, during the remainder of
the unexplored term, such difference or deficiency between the rent herein
reserved and the rent collected, if any shall become due and payable in monthly
payments during the remainder of the unexplored term, as the amounts of such
difference or deficiency shall from time to time be ascertained.

     26th: If the land and premises leased herein, or of which the leased
premises are a part, or any portion thereof, shall be taken under eminent domain
or condemnation proceedings, or if suit or other action shall be instituted for
the taking or condemnation thereof, or if in lieu or any formal condemnation
proceedings or actions, the Landlord shall grant an option to purchase and/or
shall sell and convey the said premises or any portion thereof, which includes
any portion of the demised premises or the parking thereof, to the governmental
or other public authority, agency, body or public utility, seeking to take said
land and premises or any portion thereof; then this lease shall terminate, and
the term hereof shall end as of such date and the Tenant shall have no claim or
right to claim or to be entitled to any portion of any amount which may be
awarded as damages or paid as the result of such condemnation proceedings or
paid as the purchase price for such option, sale or conveyance in lieu of formal
condemnation proceedings. The Tenant agrees to execute and deliver any
instruments, at the expense of the Landlord, as may be deemed necessary or
required to expedite any condemnation proceedings or to effectuate a proper
transfer of title to such governmental or other public authority, agency, body
or public utility seeking to take or acquire the said lands and premises or any
portion thereof. The Tenant covenants and agrees to vacate the said premises,
remove all Tenant's personal property therefrom and deliver up peaceable
possession thereof to the Landlord or such other party designated by the
Landlord in the

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notice. Failure by the Tenant to comply with any provisions in this clause shall
subject the Tenant to such costs, expenses, damages and losses as the Landlord
may incur by reason of the Tenant's breach hereof.

     27th: This lease and the obligation of Tenant to pay rent hereunder and
perform all of the other covenants and agreements hereunder on part of Tenant to
be performed shall in nowise be affected, impaired or excused because Landlord
is unable to supply or is delayed in supplying any service expressly or implied
to be supplied or is unable to make, or is delayed in making any repairs,
additions, alterations or is unable to supply or is delayed in supplying any
equipment or fixtures if Landlord is prevented or delayed from so doing by
reason of governmental preemption in connection with a National Emergency
declared by the President of the United States or in connection with any rule,
order or regulation of any department or subdivision thereof or any governmental
agency or by reason of the conditions of supply and demand which have been or
are affected by war or other emergency.

     28th: Landlord shall not be liable for failure to give possession of the
premises upon commencement date by reason of the fact that premises are not
ready for occupancy, or due to a prior Tenant wrongfully holding over or any
other person wrongfully in possession or for any other reason; in such event the
rent shall not commence until possession is given or is available, but the term
herein shall not be extended.

     29th: The Tenant shall be responsible to pay its utilities (heat and
electric which will be separately metered). The Tenant is responsible to
maintain the demised premises in good repair (including the electrical fixtures,
bulbs, and facilities provided by the Landlord) and to bear the routine and
ordinary cost. However, in the event that any structural, mechanical,
heating/air conditioning or electrical system needs replacement or any other
capital improvement is required to the demised premises, and provided the
repairs were necessitated without the fault of the Tenant or of Tenant's agent
or employees, the Landlord shall be solely and completely responsible for same.

     30th: SURRENDER. At the expiration of the tenancy hereby created, or sooner
termination hereof, Tenant shall surrender the premises in the same condition as
the Premises were in upon delivery of possession thereto under this Lease,
reasonable wear and tear excepted, and shall surrender all keys for the Premises
to Landlord at the place then fixed for the payment of rent.

     31st: COMMON AREAS. Tenant shall have the right to use in common with
others entitled thereto the employees' parking areas, driveways, sidewalks,
customer car parking areas and other common areas subject, however, to the terms
and conditions of this

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Lease and to reasonable rules and regulations for the use thereof as prescribed
from time to time by the Landlord in writing.

     32nd: INSURANCE. Tenant shall, during the term of this Lease, or any
extension hereof, at its cost and expense, maintain insurance of the following
character:

     a.   Insurance against loss or damage to the leased premises by fire or
          such other hazards as may be covered by the form of all-risk coverage
          then in effect in such amount as may be reasonably approved by the
          Landlord;

     b.   Comprehensive general liability covering property damage, bodily
          injury or personal injury claims in the amount of $1,000,000. per
          occurrence.

All policies of insurance carried pursuant to this paragraph shall name as
additional insured the Landlord. All premiums on such policies shall be paid by
the Tenant. The Tenant shall deliver to the Landlord within ten (10) days of the
date of this lease certificates for the insurance mentioned herein. Certificates
with respect to renewal policies shall be delivered to the Landlord by the
Tenant no less than twenty (20) days prior to the expiration of the original
policies. All insurance provided for in this paragraph shall be effected under
valid and enforceable policies issued by insurers that are licensed to do
business in the State of New Jersey. In the event Tenant fails to deliver such
certificates of insurance, the Landlord at its option shall be entitled to
procure such insurance protection at the cost and expense of the Tenant.

     33rd: Tenant agrees to carry in its own name fire and theft insurance
covering the use of the leased premises and the property and contents therein
belonging to the Tenant.

     34th: There shall be absolutely NO PETS allowed by owners or customers.

     35th: An administrative service fee of $100.00 per month will be charged
for any payments due under the terms of this lease from the Tenant to the
Landlord which are received more than ten days after the due date. In addition,
the Tenant agrees to pay a $50.00 penalty charge to the Landlord upon demand
should any check of the Tenant be returned unpaid due to any cause, including
insufficient funds. If the Landlord commences any legal action, including the
issuance of notices of default, notices to quit, distress warrants and/or
warrants of removals against the Tenant, prior to any defaults being remedied by
Tenants, all sums paid by the Landlord for expense of any such action or
proceeding, including, reasonable counsel fees, shall be paid by the Tenant to
the Landlord on demand and shall be collectable by the Landlord as additional
rent hereunder.

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     36th: The Tenant does hereby covenant for himself, his executors,
administrators and assigns that he will, at his own costs and expense, during
the term this lease, do everything necessary so that his use and occupancy of
the leased premises complies with every applicable law, statute, rule,
ordinance, regulation, directive, order and notice of any municipal, county,
state, federal or other authority pertaining to or affecting the leased
premises, regardless of whether the need to comply is directed to the Landlord
or the Tenant, including specifically all laws, statutes, rules, ordinances,
regulations, directives, orders and notices concerning the protection of the
environment and the control of environmental contaminants. The Tenant agrees to
indemnify and hold harmless the Landlord, his heirs, executors, administrators
and assigns from any and all costs, charges, fines and penalties imposed on the
Landlord, his heirs, executors, administrators and assigns, by reason of the
failure, neglect or refusal of the Tenant to bring the use of the leased
premises into compliance with such law, statute, rule, ordinance, regulation,
directive, order or notice. Should it become necessary for Landlord, or someone
on his behalf, to incur costs and expenses to retain the services of an attorney
to enforce this covenant or any portion thereof, Tenant agrees to indemnify the
Landlord for reasonable costs and attorneys' fees thereby expended and for any
liability incurred by the Landlord by reason of the Tenant's breach of the
covenants undertaken by the Tenant in this paragraph.

     37th: Tenant shall under no circumstances allow the introduction into the
septic system any pollutants violating pretreatment standards set by the State
of New Jersey or any of its agencies or the local governmental unit or any of
its agencies whether or not different than the Federal standards.

     38th: Landlord and Tenant warrant and represent that they have dealt with
no real estate brokers other than Complete Property Management, Inc. and The
Schultz Organization, in connection with the within lease. Both Tenant and
Landlord agree to indemnify save, and hold harmless each other from and against
any and all costs, including reasonable attorney's fees, arising from any breach
of the foregoing representations. All commissions are the responsibility of the
Landlord, to be paid on triple net rent not including common area maintenance.

     39th: For all breaches and defaults hereunder, except for payment of rent,
Landlord shall give three days' prior written notice of default to Tenant. If
Tenant fails to cure the default within three days, Landlord may then take
action under the lease.

40th: DAMAGES UPON TERMINATION

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     a. If Landlord elects to terminate this Lease under the provisions of
paragraph 20th , Landlord may recover from Tenant damages computed in accordance
with the following formula in addition to its other remedies:

     (i)   the worth at the time of judgment of any unpaid rent which has been
           earned at the time of such termination; plus

     (ii)  the worth at the time of judgment of the amount by which would have
           been earned after termination until the time of judgment exceeds the
           amount of such rental loss Tenant proves could have been reasonably
           avoided; plus

     (iii) the worth at the time of judgment of the amount by which the unpaid
           rent for the balance of the term after the time of judgment exceeds
           the amount of such rental loss that Tenant proves could have been
           reasonably avoided; plus

     (iv)  prejudgement interest

     41st: The execution of this lease by the undersigned shall terminate any
prior lease presently in effect between the parties as of the date Tenant's
obligation to pay rent, as set forth in Paragraph 1st herein, commences. Until
said date the existing lease shall remain in full force and effect.

     If the Tenant makes timely payment of all rent and charges due under this
Lease and fully performs its obligations and covenants, the Tenant may
peacefully and quietly have and hold the leasehold for the demised premises for
the term set forth in this Lease.

     And it is further understood and agreed, that the covenants and agreements
herein contained are binding on the parties hereto and upon their respective
successors, heirs, executors, administrators and assigns.

     It is further expressly agreed that the words used in the singular shall
include words in the plural where the text of this instrument so requires.

     IN WITNESS WHEREOF, the parties have inter-changeably set their hands and
seals or caused these presents to be signed by their proper corporate officers
and caused these presents to be signed by their proper corporate officers and
caused their proper corporate seal to be hereto affixed the day and year
written.

     Signed, Sealed and Delivered in the presence of

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/s/ Linda J. Adams                                /s/ William J. Adams, Jr.
__________________________                   _________________________________
Witness                                      By: WILLIAM J. ADAMS, JR.
                                                 LANDLORD
03/29/04
______________
Date

                                             ADAMS LABORATORIES INC.

/s/ Rebecca Tomlinson                             /s/ Walter E. Riehemann
__________________________                   _________________________________
Witness                                      Tenant:  WALTER E. RIEHEMANN
                                                      VICE PRESIDENT

03/26/04
_____________
Date

                                             Adams Laboratories Inc.

/s/ Rebecca Tomlinson                             /s/ David Becker
__________________________                   _________________________________
Witness                                      Tenant:  DAVID BECKER, C.F.O.

03/26/04
_____________
Date

                                       12
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                    ADDENDUM TO LEASE AGREEMENT (THE "LEASE")

          [Colonial Court, 425 Main Street, Chester, New Jersey 07930]

     (a) Notwithstanding anything to the contrary contained in paragraph 1a, the
words "beyond any applicable notice and cure period" are hereby added after the
word "default" in the first line thereof.

     (b) Notwithstanding anything contained in paragraph 1st of the Lease to the
contrary, the words ", Common Area Maintenance" shall be inserted after the word
"Taxes" in the second (2nd) line thereof. For purposes of the Lease, the term
"Common Area Maintenance" shall mean (i) capital improvements made pursuant to
any requirement of a governmental authority or any interpretation hereafter
rendered with respect to any existing law, to the extent said capital
improvements are not required by reason of Tenant's specific use of the Demised
Premises (ii) capital improvements made to improve the health, safety and
welfare of the building and its occupants, to the extent said capital
improvements are not required by reason of Tenant's specific use of the Demised
Premises; (iii) cost of all utilities used in the common areas of the building;
(iv) repairs, replacements, and general maintenance of the building; (v) fair
market rental and other costs with respect to the management office for the
building, if any; and (vi) service, maintenance and management contracts with
independent contractors for the operation, maintenance, management, repair,
replacement, or security of the building, including the common areas, including,
without limitation, snow removal, sanding and/or salting associated with snow
removal, landscaping maintenance (mowing and general clean-up), sanitation
removal; water and septic services.

     (c) Landlord acknowledges and agrees that it has approved Tenant's proposed
plan for the Tenant fitup of the Premises as described on Sheet 4 on the Power
Plan attached as Exhibit "A". In addition, Landlord shall provide a one (1) year
warranty on all work, materials and construction in connection with Landlord's
Work, or, if such work, materials or construction provides for a longer
warranty, such longer period.

     (d) Notwithstanding anything contained in paragraph 4th to the contrary,
Tenant shall not be responsible to make structural repairs or repairs to the
building systems within the Temporary Space (i.e., HVAC, electrical and/or
plumbing). In addition, reasonable wear and tear shall be excepted in connection
with the surrender of the premises at the end of the term of the Lease.

     (e) Notwithstanding anything contained in paragraph 5th to the contrary,
the Tenant's compliance obligations set forth therein shall not apply to
Landlord's Work. In addition, Tenant shall not be required to make any capital
improvements to the premises

                                       13
<PAGE>

which result from a change in zoning and/or building codes unless the required
improvement results from Tenant's specific use of the premises (as opposed to
the general use as office space).

     (f) In paragraph 6th, (i) the words "if Tenant fails to make any repair for
thirty (30) days following written notice from Landlord (except in the event of
an emergency, whereby Landlord will be permitted to enter without written
notice)", shall be added following the words "paragraph #10" in the third line
thereof and (ii) the words "Subject to the terms and conditions of paragraph
39th hereof" shall be added to the beginning of the last sentence thereof.

     (g) Notwithstanding anything to the contrary contained in paragraph 7th

         Tenant shall have the right to assign the Lease or sublet all or any
portion of the premises to an affiliate of Tenant upon the written consent of
Landlord, not to be unreasonably withheld, conditioned or delayed.

     (h) In paragraph 8th, the following should be added to the end thereof:
"Notwithstanding anything to the contrary contained herein, Tenant shall be
permitted to make minor, non-structural alterations and improvements to the
premises with the written consent of Landlord, which consent shall not be
unreasonably withheld, conditioned or delayed. Furthermore, such improvements
and/or alterations shall belong to Landlord, unless otherwise stated in
Landlord's Consent."

     (i) Notwithstanding anything to the contrary contained in paragraph 9th,
(i) the threshold for lease termination for damage shall be decreased to 40%,
(ii) Landlord's determination as to whether or not to rebuild shall be made
within thirty (30) days following the issuance of the final report and/or
determination from the insurance carrier, (iii) Tenant shall have the right to
terminate the Lease if the premises cannot be rebuilt/repaired within six (6)
months following the date of the casualty (iv) the word "carelessness" is
deleted in the tenth line of from the bottom of the paragraph and (v) the word
"reasonable" is hereby added after the word "Landlord's" in the 3rd line from
the bottom of the paragraph.

     (j) Notwithstanding anything to the contrary contained in paragraph 10th,
(i) Landlord's entrance rights shall be upon written notice to Tenant (except in
the event of any emergency) and (ii) Landlord shall use commercially reasonable
efforts to minimize interference with Tenant's operations at the Temporary
Space.

     (k) Notwithstanding anything to the contrary contained in paragraph 12th,
(i) Landlord shall use commercially reasonable efforts to relet the premises if
Landlord re-enters the same Space and (ii) Landlord shall have a duty to
mitigate Landlord's damages.

                                       14
<PAGE>

     (l) Notwithstanding anything to the contrary contained in 14th, Landlord
hereby agrees to rename the Building "Adams Corporate Plaza" for the purposes of
all indoor/outdoor and Building signage, mailings, marketing materials and
address matters.

     (m) Notwithstanding anything to the contrary contained in paragraph 15th,
the release by Tenant of Landlord for liability should exclude losses and/or
damages resulting from (1) Landlord's negligence or improper conduct and (2)
Landlord's performance of the Landlord's Work.

     (n) Notwithstanding anything to the contrary contained in paragraph 16th,
(i) Landlord's entrance rights set forth therein shall be subject to the terms
and conditions of paragraphs 10th and 39th and (ii) Landlord's termination right
set forth in paragraph 16th shall be subject to paragraph 19th and shall not
apply unless Tenant is provided with written notice of any failure or neglect to
comply.

     (o) Notwithstanding anything to the contrary contained in paragraph 17th ,
the following shall be added to the end thereof. If any mortgage to which this
Lease is subordinate is foreclosed, Tenant shall, on timely request, attorn to
the holder of the reversionary interest or to the mortgagee in possession, as
the case may be. Notwithstanding the foregoing, Tenant's agreement to
subordinate its interest hereunder shall be conditioned on the delivery to
Tenant of a subordination, non-disturbance and attornment agreement in a form
reasonably acceptable to Tenant.

     (p) Notwithstanding anything to the contrary contained in paragraph 20th,
(i) the phrase "beyond applicable notice and/or cure periods" should be inserted
after the word "default in the second line thereof, (ii) the filing of a
petition in bankruptcy against Tenant shall not be deemed a default if the same
is dismissed within sixty (60) days of the filing thereof and (iii) any
termination notice shall be sent to Tenant via certified mail, return receipt
requested.

     (q) Notwithstanding anything to the contrary contained in paragraph 21st,
copies of all notices to Tenant shall be sent Kelley Drye & Warren LLP, 200
Kimball Drive, Parsippany, New Jersey 07054, Attention: Christopher FitzPatrick,
Esq.

     (r) Notwithstanding anything to the contrary contained in paragraph 25th,
Landlord shall use commercially reasonable efforts to relet the Temporary Space
if Landlord re-enters the Temporary Space and Landlord shall have a duty to
mitigate its damages.

     (s) Notwithstanding anything to the contrary contained in paragraph 26th,
(i) Tenant shall have the right to terminate the Lease if (1) access to the
premises or building is materially hindered and/or (2) a material portion of the
premises is condemned such the

                                       15
<PAGE>

Tenant cannot practically operate its business at the premises and (ii) Tenant
shall also be entitled to submit a separate claim against the condemning
authority for Tenant's moving expenses.

     (t) Notwithstanding anything to the contrary contained in paragraph 28th,
Tenant shall have the right to terminate the Lease is Landlord fails to complete
Landlord's Work on or before April 1, 2005.

     (u) Notwithstanding anything to the contrary contained in paragraph 29th,
Landlord shall be responsible for the cost of installing all meters measuring
Tenant's electrical and HVAC consumption at the premises.

     (v) Notwithstanding anything to the contrary contained in paragraph 36th,
(i) the words "do everything necessary so" in the second and third lines thereof
are hereby deleted and the following substituted in lieu thereof: "use best
efforts to ensure" and (ii) Tenant's indemnity set forth therein shall exclude
Landlord's Work and Landlord's negligent and improper acts.

     (w) Notwithstanding anything to the contrary contained in paragraph 39th,
Tenant shall be entitled to written notice from Landlord and (i) a thirty (30)
day cure period for all non-monetary defaults under the Lease and (ii) a ten
(10) day cure period for monetary defaults under the Lease.

     (x) Notwithstanding anything to the contrary contained in paragraph 40th,
(i) Landlord shall use commercially reasonable efforts to relet the Temporary
Space if Landlord re-enters the Temporary Space and (ii) Landlord shall have a
duty to mitigate its damages.

     (y) The following paragraphs shall be added to the Lease:

     42nd Covenant of Quiet Enjoyment. Subject to the provisions of this lease,
Landlord covenants that Tenant will not be disturbed in its quiet enjoyment of
the Temporary Space during the lease term so long as Tenant pays the rent, the
additional rent and any other amounts due hereunder and Tenant observes and
performs all of the terms, covenants and conditions of this lease on Tenant's
part to be observed and performed.

     43rd Consents and Approvals. In any instance when Landlord's consent or
approval is required under this lease, such consent or approval will not be
unreasonably withheld, conditioned or delayed, except if expressly provided
otherwise.

                                       16
<PAGE>

                                   EXHIBIT "A"

                                 LANDLORD'S WORK

                                       17
<PAGE>
                                  EXHIBIT "A"

                               SCOPE OF WORK FOR
                            LANDLORD'S BASE BUILDING
                         ADAMS RESPIRATORY THERAPEUTICS
                                 MARCH 24, 2004

The following shall be considered the Base Building Scope of Work items and
shall be provided under the terms of the lease at no additional cost to the
Tenant. This Scope is based on the following documents. In the event of a
conflict between these documents, those listed later in this listing take
precedence over those listed prior.

1.  Architectural plans prepared by Robert E. Coleman, Architect NCARB, AIA
    Plans numbered 1 thru 6 and 8 thru 31 dated 5/21/03.
    Plan 7 dated 5/23/03.
    Plan 32 undated.

2.  Site plans approved by the Borough of Chester and the resolution for the
    project.

3.  Architectural drawings prepared by Kimmerle Architects labeled Core Plan for
    lease dated 3/24/04 sheets 1 and 2 and ceiling and lighting plan sheets 3
    and 4.

4.  Sketches entitled HVAC -- 1 and 2 dated 3/24/04.

5.  This document

**  In the event of any discrepancy among any of the aforementioned documents,
    the priority of such documents shall be the inverted order in which the same
    are listed (e.g., No. 5 over No. 4 over No. 3 over No. 2 over No. 1, etc.).

A.  SITE WORK
    ---------
    1. All site work necessary to complete the work shown on the site plans
       referenced above.

    2. Monument sign with the name of tenant and appropriate lighting.

B.  BUILDING EXTERIOR
    -----------------
    1. The building exterior will consist of Limestone on the front of the
       building and clap board on the sides and the rear.

C.  CONCRETE
    --------
    1. All necessary concrete footings have been included

    2. All concrete slab work as shown on the plans.

    3. All necessary cutting and patching on concrete for the installation of
       new sanitary sewer for locker rooms and bathrooms.

    4. Concrete floor to be suitable to receive tenant floor finishes.

                                       1
<PAGE>
D.   ROOF
     ----
     1. Proposed roof will be asphalt shingle roof with a 30 year manufacturer's
        guarantee.

E.   WINDOWS AND PERIMETER WALLS
     ---------------------------
     1. The windows will be insulated, tinted and low E. Sizes as shown on the
        plan.

     2. Window blinds have been excluded from the landlord work.

     3. All perimeter walls will have finished drywall, taped, spackled and
        ready for paint.

     4. All windows to be trimmed out and cased with wood. Wood will be filled
        and paint ready.

F.   BATHROOMS (2 MENS & 2 WOMENS) AND LOCKER ROOMS
     ----------------------------------------------
        Bathrooms will receive the following finishes:

        -  Walls - To be painted.
        -  Floors - Flooring and base to match the lobby finishes.
        -  Ceilings - 2' x 4' second look suspended ceiling tiles in a standard
           15/16" grid.
        -  Lighting - 2' x 4' - 18 Cell parabolic lights
        -  Bathrooms to include exhaust fan with separate on/off switch and
           building heating and cooling.
        -  Corian or Granite counter tops and back splashes which meet ADA
           requirements
        -  Wall mounted toilets (American Standard)
        -  Metal toilet partitions
        -  Building standard bathroom accessories (recessed and stainless) to
           include:
               -  Paper towel holders
               -  Toilet paper holders
               -  Feminine product dispenser
               -  Trash receptacle
               -  Mirrors - Full width by height above vanity
               -  Grab bars
        -  The locker room finishes will include the following:
               -  Ceramic tile on floor and base
               -  Prefabricated ADA showers
               -  Painted wall surfaces
               -  Lockers and benches by tenant

C.   FIRST FLOOR LOBBY AND CORRIDOR WORK (SECOND FLOOR LOBBY HAS BEEN EXCLUDED
     -------------------------------------------------------------------------
     FROM LANDLORD WORK)
     ------------------
        The lobby will receive the following finishes:

        -  Wood species throughout the lobby to be cherry with a cherry stain
           finish.

                                       2

<PAGE>
     -  Walls - The enclosed area by the elevator and stairs will receive a
        raised wood paneling wainscot with a chair rail molding. The remaining
        walls will receive vinyl wall covering with a wood crown molding.

     -  Granite floor and wood base will be installed throughout the first floor
        lobby area. The front stair will be carpeted and the rear stair shall
        receive vinyl treads and carpeted landings.

     -  Ceilings - The ceilings over the granite floor will be sheetrock. All
        other ceilings will be 2' x 2' acoustical ceiling.

     -  Lighting - Recessed downlights will be installed in the sheetrock
        ceiling. Standard 2' x 4' - 18 Cell parabolic lights will be installed
        in the remaining areas.

     -  Doors to be 3' x 8' solid core cherry to match wood paneling.

H. Elevators
   ---------
   Finishes for the elevators are as follows:
     -  Wood paneling on the walls
     -  Stainless steel doors and front wall
     -  Flooring to match the lobby

I. Electrical System
   -----------------
   The service will be capable of satisfying the following building load
   requirements:
     -  Building central HVAC system
     -  Building Common Area power and lighting
     -  Building site lighting
     -  Tenant area general power and lighting.

        The Building shall be provided with a utility electric meter installed
        in accordance with code.

        The base building electrical work will include furnishing and
        installing, wiring, circuiting etc. as required for a full and complete
        installation of lights as indicated on the Kimmerle plan.

        The base building electrical work will include furnishing and
        installing, wiring, circuiting etc. as required for a full and complete
        installation of outlets on all perimeter walls and within all core area
        walls as indicated on the Kimmerle plans (for perimeter walls) or the
        base building plans for core areas.

J. HVAC
   ----
        The building HVAC system will consist of a split system consisting of
        six, five ton air cooled condensing units and gas fired high efficiency
        furnaces. Each of these units will be capable of handling 2500 cfm. Each
        wing will be split into two separate zones by electronic dampers (north
        and south).

                                       3

<PAGE>
     The HVAC systems will be designed to accommodate all conditioned spaces of
     the building except for the computer room and any other rooms requiring
     supplemental HVAC. The system will provide 20 cfm per person outside air
     based on a occupancy load of 1 person per every 145 SF.

  The system shall have the capacity to maintain the following design
  temperatures based on a tenant usage of 4.5 watts per square foot for lights
  and power.

  -    Outdoor Summer = 95 degrees DB/76 degrees WB
  -    Indoor Summer = 75 degrees DB/50 degrees RH
  -    Outdoor Winter = 10 degrees
  -    Indoor Winter = 72 degrees
  -    The system shall have the capacity to maintain these design temperatures
       based on a tenant usage of 4.5 watts per square foot for lights and
       power.

** Tenant acknowledges and agrees that it shall contribute $6,000.00 for the
cost of such HVAC system.

     K.   AUTOMATIC FIRE SUPPRESSION SYSTEM AND SMOKE DETECTORS
          -----------------------------------------------------

          The Building will not have a sprinkler system unless required by code.

     L.   FIRE ALARM
          ----------

          A fire alarm system for the Building Common Areas shall be installed
          in accordance with all current applicable building codes including
          NFPA and ADA.

     M.   SECURITY SYSTEM
          ---------------

          The Landlord shall provide, install, and maintain a perimeter card
          access system for the Building and Demised Premises to restrict access
          into the Building and the Demised Premises to authorized personnel
          during times determined by Landlord and Tenant.

     N.   STAIRS
          ------

          The walls of the main stair across from elevator will receive wood
          paneling and vinyl wall covering. The walls of the secondary stair
          will be painted.

     O.   PLUMBING
          --------

          The base building plumbing work will include the sinks for lunchroom
          and coffee station and waterlines for coffee maker, refrigerator, and
          ice maker as per the Kimmerle plan.

                                       4
<PAGE>

P.   ALLOWANCES
     ----------

     If Tenant elects to perform the ceiling work or carpet installation,
Landlord shall be excused from such performance, provided, and on the condition
that, Landlord contribute $2.00 per square foot for the ceiling system and a
$12.00 per square yard for carpet installation.

     The credit for the ceiling will be 13,482 SF -- 1,660 SF (core ceiling) =
     11,822 SF

     This equates to $23,644 for ceiling credit and $15,763 for carpet credit

                                       5<PAGE>
                                                                    Exhibit 10.2

                            ASSET PURCHASE AGREEMENT

      THIS ASSET PURCHASE AGREEMENT (this "AGREEMENT"), dated as of March 24,
2004 (the "EFFECTIVE DATE"), is by and between ADAMS LABORATORIES, INC., a Texas
corporation d/b/a Adams Respiratory Therapeutics ("SELLER"), and CARDINAL HEALTH
PTS, LLC, a Delaware limited liability company ("PURCHASER").

      A. Seller leases and operates a manufacturing plant located at 14801
Sovereign Road, Fort Worth, Texas 76155-2645 (as further defined in Section
1.1.1(a), the "PLANT"; an index of defined terms is set forth in Section 8.16).
At the Plant, Seller is engaged in, among other things, developing,
manufacturing and selling Adams Products. "ADAMS PRODUCTS" means all products
for which Seller now has or prior to Closing obtains the rights to market or
sell and specifically includes without limitation products currently marketed or
planned to be marketed under the Mucinex(R) brand, the ALLERx(R) brand, the
Aquatab(R) brand or any replacement or successor brand of such brands and also
includes any experimental (pre-commercial) product. Seller desires to divest
that portion of its business (the "TRANSFERRED BUSINESS") that relates solely or
primarily to the manufacture of Adams Products.

      B. Subject only to the limitations and exclusions contained in this
Agreement and on the terms and conditions hereinafter set forth, Seller desires
to sell, and Purchaser desires to purchase, Seller's assets relating to the
Transferred Business.

      NOW, THEREFORE, in consideration of the foregoing recitals and of the
respective covenants, agreements, representations and warranties herein
contained, and intending to be legally bound hereby, the parties hereto hereby
agree as follows:

                          ARTICLE I - PURCHASE AND SALE

      1.1 Agreement to Sell. At the Closing and except as otherwise specifically
provided in Section 2.3 hereof, Seller shall grant, sell, convey, assign,
transfer and deliver to Purchaser, upon and subject to the terms and conditions
of this Agreement, all right, title and interest of Seller in and to the
Purchased Assets, free and clear of all mortgages, liens, pledges, security
interests, charges, claims, restrictions and other encumbrances and defects of
title of any nature whatsoever except Permitted Liens.

            1.1.1 Purchased Assets. The term "PURCHASED ASSETS" shall mean the
following business operations, assets, properties and rights of Seller existing
as of the date of the Closing, except as otherwise expressly provided in Section
1.1.2 or 2.3 hereof:

                  (a) All of Seller's interests in certain real property leased
      by Seller and used in connection with the Transferred Business and located
      at 14801 Sovereign Road Fort Worth, Texas 76155-2645, which interests,
      together with the lease relating thereto (the "REAL PROPERTY LEASE") are
      more particularly described on SCHEDULE 1.1.1(a) (the property described
      in this Section 1.1.1(a) referred to as the "PLANT");

                  (b) All fixtures, installations, machinery, equipment and
      spare parts, to the extent not constituting real property under applicable
      law, vehicles, furniture, tools, office and laboratory equipment and other
      personal property located at the Plant, including but not limited to those
      identified in SCHEDULE 1.1.1(b) of the Disclosure Schedule (the personal
      property transferred under this paragraph collectively referred to as the
      "TANGIBLE PERSONAL PROPERTY");
<PAGE>
                  (c) Seller's inventories of work in process (including bulk
      (unpackaged) tablets), raw materials, packaging materials, other materials
      and supplies held for use in the ordinary course of operating the Plant
      and operating the Tangible Personal Property, including without limitation
      all inventory (other than finished goods) at the Plant and in the
      possession of contractors providing outsourcing services with respect to
      that inventory, but excluding in each case obsolete goods, materials and
      supplies and excluding inventories of Adams Products packaged or shipped
      prior to Closing (collectively, the "INVENTORY");

                  (d) All prepaid expenses and deposits relating to the
      Transferred Business or the Plant other than the prepaid expenses and
      deposits listed on SCHEDULE 1.1.2(g);

                  (e) Copies of all files, books, records, data, plans and other
      information relating to the Purchased Assets or the Transferred Business,
      including without limitation all manufacturing processes and procedures,
      analytical procedures, quality assurance and control procedures, sampling
      procedures, controlled documents, operational and environmental systems
      and records, standard operating procedures, policies or other documents
      relating to environmental, health and safety matters, customer and
      supplier lists, equipment manuals and maintenance records, building and
      equipment blueprints and specifications, drawings and designs, real estate
      surveys and reports, abstracts of title, computer software, documentation
      and related object and source code (to the extent owned or assignable by
      Seller), and other data used or held for use in connection with the
      operation of the Transferred Business (all of the foregoing items shall
      collectively be referred to as the "BOOKS AND RECORDS"). The Seller shall
      have a right to retain originals of all Books and Records. The parties
      acknowledge and agree that they may determine additional items constitute
      Books and Records pursuant to the foregoing definition, and each party
      agrees to promptly inform the other party of any additional items that
      such party believes constitute additional Books and Records;

                  (f) All of Seller's rights under each written or oral
      contract, agreement, warranty relating to any Tangible Personal Property
      or other Purchased Asset, lease, plan, instrument, registration, license,
      permit or approval, or other document, commitment, arrangement,
      undertaking, practice or authorization entered into primarily or
      exclusively in connection with the Transferred Business or the Purchased
      Assets, identified on SCHEDULE 3.1.17;

                  (g)   All rights under express or implied warranties
      relating to the Transferred Business or the Purchased Assets;

                  (h) All rights to use the information included in the Books
      and Records and the right to use manufacturing processes, know how and
      similar information or intellectual property whether included in the Books
      and Records, transferred as a result of employment by Purchaser of
      Transferring Employees or otherwise relating to the other Purchased Assets
      and properly obtained by Purchaser, excluding only Seller's Proprietary
      Rights as defined in 1.1.2(b) (such non-excluded rights are referred to as
      "TRANSFERRED KNOW HOW"); and

                                       2
<PAGE>
                  (i) All other properties and assets of every kind and nature,
      real or personal, tangible or intangible, located at the Plant and owned
      by Seller or its Affiliates and used or held for use exclusively or
      primarily in connection with the Transferred Business and not otherwise
      specifically excluded under Section 1.1.2. An "AFFILIATE" of a person is a
      person that directly, or indirectly through one or more intermediaries,
      controls or is controlled by, or is under common control with, the person
      specified.

            1.1.2 Excluded Assets. Notwithstanding the foregoing, the Purchased
Assets shall not include any of the following (the "EXCLUDED ASSETS"):

                  (a) Those certain fixtures, installations, machinery,
      equipment and spare parts, to the extent not constituting real property
      under applicable law, vehicles, furniture, tools, office and laboratory
      equipment and other personal property located at the Plant and identified
      in SCHEDULE 1.1.2(a) of the Disclosure Schedule (Seller shall provide an
      updated SCHEDULE 1.1.2(a) to Purchaser no less than five (5) business days
      prior to the Closing Date which may identify additional excluded items,
      provided however that such updated schedule shall not include assets that
      are not on SCHEDULE 1.1.2(a) attached hereto which (x) relate to the
      Transferred Business or (y) would cause the representation in clause (e)
      of Section 3.1.13 to be inaccurate or (z) that were included on Schedule
      1.1.1(a) as of the Effective Date and have a replacement cost in excess of
      $5,000 with respect to any item or $15,000 in the aggregate unless Seller
      can demonstrate to Purchaser's reasonable satisfaction that such assets
      were purchased after the Balance Sheet Date for use by Seller at a
      location other than the Plant);

                  (b) The patents and trademarks of Seller including those set
      forth on SCHEDULE 1.1.2(b) of the Disclosure Schedule, Seller's rights to
      market and sell Adams Products, Seller Confidential Information that
      relates solely to the Adams Products ("SELLER'S PROPRIETARY RIGHTS");

                  (c) The contract rights relating to the Transferred Business
      or the Plant and set forth on SCHEDULE 1.1.2(c) of the Disclosure
      Schedule;

                  (d) The originals of the Books and Records;

                  (e) All tangible properties of Seller located at any location
      other than the Plant that are not set forth on SCHEDULE 1.1.1(b) of the
      Disclosure Schedule;

                  (f) All cash on hand and on deposit in banks, cash equivalents
      and investments, and all accounts, notes and royalties receivable, and
      other rights accruing before the Closing Date to receive cash including
      contingent rights such as tax refunds;

                  (g) The prepaid expenses and deposits listed on SCHEDULE
      1.1.2(g), which Seller shall update at least three business days prior to
      Closing with the consent of Purchaser not to be unreasonably withheld;

                  (h) All tangible personal property disposed of or consumed in
      the ordinary course of business between the Effective Date and the Closing
      Date;

                  (i) The corporate seals, certificates of incorporation,
      bylaws, qualifications to conduct business as a foreign corporation,
      taxpayer and other identification numbers, minute books, stock books, tax
      returns, books of account or other records having to do with the corporate
      organization of Seller;

                                       3
<PAGE>
                  (j) All insurance policies relating to the Transferred
      Business, including policies relating to property, liability, business
      interruption, health and workers' compensation and lives of officers of
      Seller;

                  (k) Pension, profit sharing or savings plans and trusts and
      the assets thereof and any other benefit plan set forth on SCHEDULE 3.1.19
      of the Disclosure Schedule;

                  (l) Any contracts entered into by Seller or by which Seller or
      any of the Purchased Assets is bound, other than the Assumed Contracts;

                  (m) Rights to enforce covenants and warranties not included in
      the Purchased Assets;

                  (n) Insurance policies; and

                  (o) Seller's finished goods inventory as of the Closing Date.

      1.2 Agreement to Purchase. At the Closing, Purchaser shall purchase the
Purchased Assets from Seller, upon and subject to the terms and conditions of
this Agreement and in reliance on the representations, warranties, covenants and
agreements of Seller contained herein, in exchange for the Purchase Price. In
addition, Purchaser shall assume at the Closing and agree to pay, discharge or
perform, as appropriate, the Assumed Liabilities. Except for the Assumed
Liabilities, Purchaser shall not assume or be responsible for any liabilities or
obligations of Seller or otherwise relating to any of the Purchased Assets.

      1.3   The Purchase Price.

            1.3.1 Payment of Purchase Price. The Cash Payment, the Inventory
Cost and the Upgrade Savings are hereinafter sometimes referred to,
collectively, as the "PURCHASE PRICE" and shall be paid as follows:

                  (a) Cash Payment. At the Closing, Purchaser shall pay to
      Seller an aggregate amount equal to: (i) $5,000,000, (ii) plus amounts
      incurred as of the Closing by Seller in connection with the purchase and
      installation of the Thomas Engineering, Inc. tablet press that have been
      approved by Purchaser in advance of incurring such amounts, (iii) plus
      $152,000 paid by Seller as satisfaction in full of the indebtedness set
      forth on SCHEDULE 1.3.1(a) and (iv) less the accrued but unpaid vacation
      liability as of the Closing assumed by the Purchaser for the Transferring
      Employees, an estimate of which as of the Effective Date is set forth on
      SCHEDULE 1.3.1(a) which Seller shall update at least three business days
      prior to Closing (the "CASH PAYMENT").

                  (b) Inventory Cost. At Closing, Purchaser and Seller shall
      agree upon the ending inventory set forth on SCHEDULE 1.3.1(b), which
      shall be based upon a physical inspection of all the inventory in the
      Plant that shall be performed by the parties hereto, no more than five (5)
      days prior to Closing and updated after the close of business on the day
      before the Closing (the "CLOSING INVENTORY BALANCE"). Purchaser shall
      adjust the line items on the Closing Inventory Balance at the end of each
      month to reflect the inventory on hand at the end of each month. Purchaser
      will pay Seller for inventory included in the Closing Inventory Balance
      that is consumed each month after the Closing, until the entire Closing
      Inventory Balance is consumed. Such payment shall be made

                                       4
<PAGE>
      within 30 days of the end of such month. For purposes of this Section
      1.3.1(b), "consumed" means the monthly reduction in the Closing Inventory
      Balance.

            For example, but not by means of limitation, if at the beginning of
      any month after the Closing, the Closing Inventory Balance for bulk
      Guaifenesin is $80,000, work-in-process is $50,000, and Guifenesin held as
      raw materials is $100,000, and the Closing Inventory Balance at the end of
      such month, as adjusted for that month's usage, is $10,000 of bulk
      Guaifenesin, $0 work-in-process and $20,000 for Guifenesin held as raw
      materials, the Purchaser will be deemed to have consumed $70,000 of bulk
      Guaifenesin, $50,000 work-in-process and $80,000 Guifenesin held as raw
      materials. For the avoidance of doubt, once Purchaser has paid to Seller
      an amount to reflect a reduction in a line item in the Closing Inventory
      Balance, such item shall be fully paid for and Purchaser shall have no
      further obligation to Seller with respect to the same (i.e., Purchaser
      will not make additional payments to Seller for the same item that moves
      from raw materials, to work-in-process and then to bulk product).
      Purchaser shall use commercially reasonable efforts to use the inventory
      included in the Purchased Assets prior to the use of any inventory
      acquired after the Closing Date. The aggregate amount payable pursuant to
      this Section 1.3.1(b) is referred to as "INVENTORY COST". Upon reasonable
      notice the Seller shall have the right to review the Purchaser's records
      related to the inventory and, at its expense, conduct an investigation of
      the inventory records. If after such investigation the Seller disputes the
      Purchaser's determination of the consumption of the inventory, the Seller
      may invoke the provisions of Section 6.5 of this Agreement.

                  (c) Savings on Plant Upgrades. Within ninety (90) days after
      the third anniversary of the Closing Date, Purchaser shall pay Seller an
      amount equal to 50% of the excess, if any, of (i) $* over (ii) reasonable
      actual out-of-pocket costs incurred by Purchaser and its Affiliates from
      the Closing Date through the third anniversary of the Closing Date to
      upgrade the Plant to provide for manufacturing in accordance with cGMP.
      Any amount paid pursuant to subsection (a) above relating to the
      satisfaction of indebtedness relating to the Thomas Press shall be treated
      as a cost incurred by Purchaser under clause (ii) above. Any amount
      payable pursuant to this Section 1.3.1(c) is referred to as the "Upgrade
      Savings". For example, if Purchaser incurs $* of qualified costs to
      upgrade the Plant, then Purchaser would owe Seller $* pursuant to this
      Section 1.3.1(c), and if Purchaser incurred $* of qualified costs to
      upgrade the Plant, then Purchaser would not owe Seller any amount pursuant
      to this Section 1.3.1(c).

                  (d) Payment Method. All payments under this Agreement shall be
      payable by wire transfer of immediately available funds to such account as
      the receiving party shall designate in writing to the paying party.

            1.3.2 Allocation of Purchase Price. The Purchase Price and the
Assumed Liabilities shall be allocated among the Purchased Assets acquired
hereunder in a manner to be determined by Purchaser prior to Closing in its
reasonable discretion with the consent of Seller, which consent shall not be
unreasonably withheld. Seller and Purchaser shall file all applicable federal,
state, local and foreign tax returns and forms, including, Form 8594, consistent
with such allocation.

                                       5

----------
*  Omitted information is the subject of a request for confidential treatment
   pursuant to Rule 406 under the Securities Act of 1933 and has been filed
   separately with the Securities and Exchange Commission.
<PAGE>
      1.4   Liabilities and Obligations of Seller.

            1.4.1 Assumed Liabilities. At the Closing, Purchaser shall assume
and agree to pay, discharge or perform, as appropriate, the following, and only
the following, liabilities and obligations of Seller (the "ASSUMED
LIABILITIES"):

                  (a) all liabilities and obligations of Seller in respect of
      the Assumed Contracts that are disclosed in the text of the Assumed
      Contracts (including any exhibits or other attachments) as delivered to
      Purchaser prior to the Effective Date and accrue subsequent to the
      effective time of the Closing; provided, that, without limiting the
      generality of the foregoing, Purchaser shall not, and does not, assume or
      agree to pay, discharge or perform (i) any liabilities or obligations
      required to be performed by Seller prior to the Closing Date, (ii) any
      liabilities or obligations arising out of any breach by Seller of any
      provision of any Assumed Contract prior to the Closing Date, or the date
      of assignment if later, or (iii) amounts owed by Seller for goods
      purchased by Seller, or services provided to Seller, prior to the Closing
      Date;

                  (b) all liabilities and obligations of Seller in respect of
      the Real Property Lease that are disclosed in the text of the Real
      Property Lease (including any exhibits or other attachments) as delivered
      to Purchaser prior to the Effective Date and accrue subsequent to the
      effective time of the Closing; provided, that, without limiting the
      generality of the foregoing, Purchaser shall not, and does not, assume or
      agree to pay, discharge or perform (i) any liabilities or obligations
      required to be performed by Seller prior to the Closing Date, or (ii) any
      liabilities or obligations arising out of any breach by Seller of any
      provision of the Real Property Lease prior to the Closing Date;

                  (c) all liabilities relating to the Transferred Business
      accruing after the Closing;

                  (d) as set forth in Section 8.3, one-half of any federal,
      state or local tax incident to or arising as a consequence of the
      negotiation or consummation of this Agreement and the transactions
      contemplated hereby by Seller;

                  (e) any liability or obligation arising after the Closing with
      respect to any Plant Employees employed or engaged by Purchaser after the
      Closing, including any liability for salaries, wages, payroll taxes,
      severance pay entitlements, health, medical, retirement, vacation or
      deferred compensation benefits or any other obligations or expenses
      arising out of or relating to the employment by Purchaser of the Plant
      Employees or Purchaser's termination of such employees. Purchaser shall
      retain and shall assume and discharge all liabilities and costs under the
      Consolidated Omnibus Budget Reconciliation Act, as amended ("COBRA")
      (including liabilities for violations thereof) as to those employees Plant
      Employees that commence employment with Purchaser immediately following
      the Closing for all "qualifying events" (as defined in COBRA) occurring
      with respect to those Plant Employees that commence employment with
      Purchaser and their dependents after the Closing;

                  (f) all accrued but unpaid vacation determined as of the
      Closing Date for the Transferring Employees (for clarification purposes,
      Purchaser shall not incorporate such vacation expense for the Transferring
      Employees into the cost of goods under the Supply Agreement);

                                       6
<PAGE>
                  (g) any liability and obligation, including open purchase
      orders that relate to the new Thomas Engineering, Inc. tablet press,
      approved by Purchaser in writing prior to the Closing Date, that are not
      incurred or paid as of the Closing Date; or

                  (h) those certain liabilities and obligations for inventory in
      transit at Closing that are (x) set forth on SCHEDULE 1.4.1(h) as amended
      no less than three business days prior to the Closing Date with the
      consent (not to be unreasonably withheld) of the Purchaser and (y) not
      included in the Closing Inventory Balance.

            1.4.2 Liabilities and Obligations Retained by Seller. In no event,
however, shall Purchaser assume or incur, nor does Purchaser assume or incur,
any liability or obligation of Seller, under this Section 1.4 or otherwise, in
respect of any of the following:

                  (a) any malpractice, product liability or similar claim for
      injury to person or property, regardless of when made or asserted, which
      arises out of or is based upon any express or implied representation,
      warranty, agreement or guarantee made by Seller, or alleged to have been
      made by Seller, or which is imposed or asserted to be imposed by operation
      of law, in connection with any service performed or product licensed,
      sold, distributed, leased or manufactured by or on behalf of Seller on or
      prior to the Closing Date, in each case including without limitation any
      claim relating to any product delivered in connection with the performance
      of such service and any claim seeking recovery for special, incidental or
      consequential damages, including without limitation lost revenues or
      income;

                  (b) any federal, state or local income or other tax (i)
      payable with respect to operation of the Purchased Assets or the
      Transferred Business on or prior to the Closing, or the other business,
      assets, properties or operations of Seller or any of its subsidiaries, or
      (ii) except as provided in Section 8.3, incident to or arising as a
      consequence of the negotiation or consummation of this Agreement and the
      transactions contemplated hereby by Seller;

                  (c) any liability or obligation under or in connection with
      Excluded Assets;

                  (d) any liability or obligation relating to any present or
      former employees, agents, independent contractors or consultants of
      Seller, including any liability for accrued salaries, wages, payroll
      taxes, severance pay entitlements, health, medical (including COBRA),
      retirement, vacation or deferred compensation benefits or any other
      obligations or expenses arising out of or relating to the employment by
      Seller of its employees or Seller's termination of such employees except
      in each case, as expressly provided for in Section 1.4.1 (e);

                  (e) any liability or obligation of Seller arising or incurred
      in connection with the negotiation, preparation and execution of this
      Agreement and the transactions contemplated hereby and the fees and
      expenses of counsel, accountants and other experts;

                  (f) any liability or obligation with respect to the return of
      goods manufactured on or prior to the Closing Date by Seller and in the
      possession of suppliers, distributors, resellers or customers; or

                                       7
<PAGE>
                  (g) any other liability or obligation of Seller other than as
      expressly set forth in this Section 1.4.1.

      1.5 Proration of Certain Items. Payments in respect of the Real Property
Lease or equipment leases included in the Assumed Contracts in respect of the
month in which the Closing occurs and utility, water and sewer use charges shall
be apportioned and adjusted as of the Closing Date. Appropriate cash payments by
Seller or Purchaser, as the case may require, shall be made from time to time,
as soon as practicable after the facts giving rise to the obligation for such
payments are known, to give effect to the prorations provided for in this
Section 1.5.

                  ARTICLE II - CLOSING AND THIRD PARTY CONSENTS

      2.1 Time and Place of Closing. Subject to the provisions of Section 8.1
hereof, the closing (the "CLOSING") of the transactions contemplated by this
Agreement shall be coordinated by Hutchison & Mason PLLC, counsel to the
Purchaser, and shall be effected by fax, courier, or other means, with or
without a physical meeting of the parties and shall take place at 10:00 A.M.,
local time, on April 1, 2004, or such other time or date as the parties may
mutually agree in writing. The date of the Closing is sometimes herein referred
to as the "CLOSING DATE." At the Closing, possession and operating control of
the Purchased Assets shall be delivered and/or tendered by Seller to Purchaser
and title to the Purchased Assets shall pass to Purchaser upon such delivery or
tender of the Purchased Assets.

      2.2 Items to be Delivered at Closing. At the Closing and subject to the
terms and conditions herein contained:

            (a) Seller shall deliver to Purchaser the following:

                  (i) a duly executed Lease Assignment and Assumption Agreement
            (approved in writing by the owner of the Plant), Bill of Sale and
            Assignment and Assumption Agreement in substantially the forms
            attached hereto as EXHIBITS A-1, A-2, and A-3 respectively;

                  (ii) actual possession and operating control of all of the
            Purchased Assets;

                  (iii) a Commercial Services Agreement in substantially the
            form of EXHIBIT B hereto (the "SERVICES AGREEMENT") duly executed by
            Seller;

                  (iv) a Supply Agreement in substantially the form of EXHIBIT C
            hereto (the "SUPPLY AGREEMENT") duly executed by Seller;

                  (v) a Quality Agreement in substantially the form of EXHIBIT D
            hereto (the "QUALITY AGREEMENT") duly executed by Seller;

                  (vi) a Sublease Agreement in substantially the form of EXHIBIT
            E hereto (the "SUBLEASE AGREEMENT") duly executed by Seller; and

                  (vii) a Transition Services Agreement in substantially the
            form of EXHIBIT F hereto (the "TRANSITION AGREEMENT") duly executed
            by Seller.

                                       8
<PAGE>
            The parties acknowledge that the terms of the Quality Agreement,
      Sublease Agreement and Transition Agreement have not been fully negotiated
      and remain subject to reasonable and customary changes prior to Closing.

            (b) Purchaser shall deliver to Seller the following:

                  (i)   the Cash Payment in accordance with Section
                        1.3.1(a) hereof;

                  (ii)  a duly executed Services Agreement;

                  (iii) a duly executed Supply Agreement and Quality
                        Agreement;

                  (iv)  a duly executed Assignment and Assumption
                        Agreement and Lease Assignment and Assumption
                        Agreement;

                  (v)   a duly executed Sublease Agreement;

                  (vi)  a duly executed Transition Agreement; and

                  (vii) updated SCHEDULES 1.1.2(a) and 3.1.18.

            (c) At or prior to the Closing, the parties hereto shall also
      deliver to each other the agreements, opinions, certificates and other
      documents and instruments referred to in Article V hereof.

      2.3 Third Party Consents. To the extent that Seller's rights under any
Assumed Contract or other Purchased Asset may not be assigned without the
approval, consent or waiver of another person, this Agreement shall not
constitute an agreement to assign the same if an attempted assignment would
constitute a breach thereof or be unlawful, and Seller shall use its reasonable
commercial efforts to obtain any such required approval(s), consent(s) and
waiver(s) as promptly as possible. SCHEDULE 2.3 of the Disclosure Schedule sets
forth and describes all of such approvals, consents or waivers. If any such
approval, consent or waiver shall not be obtained or if any attempted assignment
would be ineffective or would impair Purchaser's rights under the Assumed
Contract or other Purchased Asset in question so that Purchaser would not
acquire the benefit of all such rights and if Purchaser shall elect to effect
the Closing notwithstanding its rights under 5.1.6 to the contrary, Seller, to
the maximum extent permitted by law and the Assumed Contract or other Purchased
Asset, shall act after the Closing as Purchaser's agent in order to obtain for
it the benefit of all such rights thereunder and shall cooperate with Purchaser
in any other mutually agreeable arrangements to provide the benefit of all such
rights to Purchaser.

                  ARTICLE III - REPRESENTATIONS AND WARRANTIES

      3.1 Representations and Warranties of Seller. Seller hereby represents and
warrants to Purchaser that, except as set forth on a Disclosure Schedule
delivered to Purchaser with this Agreement, each of which exceptions shall
specifically identify the relevant subsection hereof to which it relates and
shall be deemed to be representations and warranties as if made hereunder (the
"DISCLOSURE SCHEDULE"):

            3.1.1 Corporate Existence. Seller is a corporation duly organized,
validly existing and in good standing under the laws of the State of Texas.
Seller is duly qualified to do business and is in good standing as a foreign
corporation in New Jersey.

                                       9
<PAGE>
            3.1.2 Corporate Power; Authorization; Enforceable Obligations.
Seller has the corporate power, authority and legal right to execute, deliver
and perform this Agreement and the other agreements, documents and instruments
required to be delivered by Seller in connection with this Agreement. All
agreements, documents, and instruments required to be delivered by Seller
pursuant to this Agreement are sometimes collectively referred to hereinafter as
the "SELLER'S DOCUMENTS". The execution, delivery and performance by Seller of
this Agreement and of the Seller's Documents have been duly authorized by all
necessary corporate action on the part of Seller and its directors and
stockholders. The approval or authorization of this Agreement and the
transactions contemplated hereby by the shareholders of Seller is not required.
This Agreement has been, and the Seller's Documents will be, duly executed and
delivered on behalf of Seller by duly authorized officers of Seller, and this
Agreement constitutes, and the Seller's Documents when executed and delivered
will constitute, the legal, valid and binding obligations of Seller, enforceable
against Seller in accordance with their respective terms, subject to any
applicable bankruptcy, insolvency, reorganization, moratorium or similar laws
now or hereafter in effect relating to creditors' rights generally or to general
principles of equity.

            3.1.3 Validity of Contemplated Transactions, Etc. The execution,
delivery and performance of this Agreement and each of Seller's Documents by
Seller does not and will not violate, conflict with or result in the breach (or
would result in a breach but for any requirement of notice or lapse of time or
both) of any term, condition or provision of, or require the consent (except as
set forth on SCHEDULE 3.1.3) of any other person under, (a) any existing law,
ordinance, or governmental rule or regulation to which Seller or any of the
Purchased Assets is subject, (b) any existing judgment, order, writ, injunction,
decree or award of any court, arbitrator or governmental or regulatory official,
body or authority which is applicable to Seller or any of the Purchased Assets,
(c) the certificate of incorporation and bylaws, as amended, of, or any
securities issued by, Seller, or (d) any mortgage, indenture, agreement,
contract, commitment, lease, plan, Authorization, or other instrument, document
or understanding, oral or written, by which any of the Transferred Business, the
Purchased Assets or the Purchaser may be bound or affected, or give any party
with rights thereunder the right to terminate, modify, accelerate or otherwise
change the existing rights or obligations of Seller thereunder. Except as
aforesaid, no Authorization, approval or consent of, and no registration or
filing with, any governmental or regulatory official, body or authority is
required in connection with the execution, delivery or performance of this
Agreement or any of the Seller's Documents by Seller.

            3.1.4 No Third Party Rights. Except for this Agreement or agreements
disclosed on SCHEDULE 3.1.4, there are no existing agreements, options,
commitments or rights with, of or to any person to acquire any of Seller's
assets, properties or rights included in the Purchased Assets or any interest
therein.

            3.1.5 [reserved]

            3.1.6 Financial Information. All financial information provided by
the Seller to the Purchaser, including without limitation the balance sheet
dated December 31, 2003 (such balance sheet, the "BALANCE SHEET" and such date,
the "BALANCE SHEET DATE") and the other information listed on SCHEDULE 3.1.6
(collectively, the "FINANCIAL INFORMATION"):

                  (a) is in all material respects true, complete and correct;

                                       10
<PAGE>
                  (b) in the case of historical information, is in accordance
            with the books and records of Seller;

                  (c) in the case of historical information, presents fairly the
            results of operations for the periods then ending and other
            information concerning the condition of the Plant and the other
            Purchased Assets as of the respective dates thereof; and

                  (d) in the case of forecasts, represents the Seller's current
            belief of the information for the periods covered thereby and is
            based upon reasonable assumptions.

            3.1.7 Title to Property; Absence of Encumbrances, etc.

                  (a) SCHEDULE 1.1.1(a) of the Disclosure Schedule sets forth a
      complete and accurate description of the leased real property that
      includes the Plant. A true and correct copy of the Real Property Lease has
      been delivered to Purchaser. The Real Property Lease is valid, binding and
      enforceable in accordance with its terms and is in full force and effect,
      and there are no offsets or defenses by either landlord or tenant
      thereunder. There are no existing defaults, and no events or circumstances
      have occurred which, with or without notice or lapse of time or both,
      would constitute defaults, under the Real Property Lease. The assignment
      of the Real Property Lease by Seller to Purchaser will not (i) permit the
      landlord to accelerate the rent or cause the lease terms to be
      renegotiated; (ii) constitute a default thereunder; (iii) require the
      consent of the landlord or any third party; or (iv) affect the
      continuation, validity, or effectiveness thereof or the terms thereof.

                  (b) All water, sewer, gas, electric, telecommunications lines
      and drainage facilities and all other utilities (the "UTILITIES")
      necessary for the operation of the Plant are installed to supply the
      Plant, are of adequate size and capacity for the operation of the Plant as
      currently conducted by Seller and, to the knowledge of Seller, as intended
      to be conducted by Purchaser (assuming Purchaser intends to use the Plant
      at up to full capacity and full employment and assuming substantially the
      same product mix as conducted by Seller), and all such Utilities are
      validly connected and in use in the operation of the Plant.

                  (c) To the knowledge of Seller, the Plant has been constructed
      and operated in compliance in all material respects with all applicable
      federal, state and local laws, regulations, ordinances, standards and
      orders, including, without limitation, all zoning laws, building codes,
      regulations, ordinances, standards and orders.

                  (d) There is no pending or to the knowledge of Seller,
      contemplated condemnation action with respect to the Plant, or any part
      thereof. Seller has not received written notice of, and, to the Seller's
      knowledge, there is no pending or contemplated change in any governmental
      regulation or private restriction applicable to the Plant; any pending or
      threatened judicial or administrative action or proceedings in any court
      or before any governmental authority or arbitration board or tribunal; or
      any such action or proceeding pending or threatened by adjacent landowners
      or other persons, any of which would result in any material change in the
      condition of the Plant, or any part thereof, or to the access to the
      Plant. Seller has not received written notice of, nor, to

                                       11
<PAGE>
      Seller's knowledge are there, any contemplated improvements to the Plant
      by any public authority, the costs of which are to be assessed, as special
      taxes or otherwise, against the Plant or the owner or operator thereof in
      the future.

            3.1.8 Inventory. The Inventory included on the Balance Sheet or
acquired since the date thereof was acquired and has been maintained in the
ordinary course of business; is of good and merchantable quality; is not
obsolete; is valued at an amount not in excess of the lower of cost or net
realizable value; is not subject to any writedown or write-off other than
reserves and allowances set forth on the Balance Sheet or, with respect to
Inventory acquired or produced since the date thereof, reserves and allowances
proportionate to the reserves and allowances for Inventory set forth on the
Balance Sheet; and is located at the Plant. As of the Closing, the Inventory
shall be of a type and quality useable by Purchaser in the ordinary course of
performing its obligations under the Supply Agreement. All items included in the
Inventory, (x) to the extent they constitute raw materials or packaging
materials, shall have been inspected and accepted by Seller in accordance with
the applicable specifications in effect as of the Closing Date, and (y) to the
extent they constitute work in process, shall have been manufactured in
accordance with the applicable specifications in effect as of the Closing Date.

            3.1.9 Taxes and Tax Returns. Except as set forth on SCHEDULE 3.1.9,
all material federal, state, local and foreign tax returns, reports, statements
and other similar filings required to be filed by Seller (the "TAX RETURNS")
with respect to any federal, state, local or foreign taxes, assessments,
interest, penalties, deficiencies, fees and other governmental charges or
impositions (including without limitation all income tax, unemployment
compensation, social security, payroll, sales and use, excise, privilege,
property, ad valorem, franchise, license, school and any other tax or similar
governmental charge or imposition under laws of the United States or any state
or political subdivision thereof or any foreign country or political subdivision
thereof) (the "TAXES"), have been timely filed (taking extensions into account)
with the appropriate governmental agencies in all jurisdictions in which such
Tax Returns are required to be filed and all such Tax Returns materially reflect
the liabilities of Seller for Taxes for the periods, property or events covered
thereby. All Taxes, including without limitation those which are called for by
the Tax Returns or heretofore or hereafter claimed to be due by any taxing
authority from Seller, have been properly accrued or paid (or, in the case of
any contested taxes, Seller has established an adequate reserve) and the amount
of accruals for Taxes recorded by Seller on its books is adequate to cover the
Tax liabilities of Seller. Seller has not received any notice of assessment or
proposed assessment in connection with any Tax Returns and to the Seller's
knowledge there are no pending tax examinations of or tax claims asserted
against Seller or any of the Purchased Assets. Seller has not extended, or
waived the application of, any statute of limitations of any jurisdiction
regarding the assessment or collection of any Taxes. There are no tax liens
(other than any lien for current Taxes not yet due and payable) on any of the
Purchased Assets. Seller has no knowledge of any basis for any additional
assessment of any Taxes. Seller has made all deposits required by law to be made
by it with respect to employees' withholding and other employment Taxes,
including without limitation the portion of such deposits relating to Taxes
imposed upon Seller. Except as set forth on Schedule 3.1.9, no sales, transfer
or similar taxes are payable to the State of Texas or, to Seller's knowledge, in
any other jurisdiction in connection with the sale of the Purchased Assets.

            3.1.10 Books and Records. The Books and Records and the accounts of
Seller accurately and fairly reflect, in reasonable detail, all of the
transactions regarding the Plant, the

                                       12
<PAGE>
Transferred Business and the Purchased Assets. Seller has not engaged in any
transaction with respect to the Transferred Business, maintained any bank
account for the Transferred Business or used any of the funds of Seller in the
conduct of the Transferred Business except for transactions, bank accounts and
funds which have been and are reflected in Financial Information.

            3.1.11 Existing Condition. Since the Balance Sheet Date, Seller has
not:

                  (a) incurred any liabilities in connection with the
      Transferred Business, other than liabilities incurred in the ordinary
      course of the Transferred Business consistent with past practice, or
      discharged or satisfied any lien or encumbrance liabilities in connection
      with the Transferred Business, or paid any liabilities, other than in the
      ordinary course of the Transferred Business consistent with past practice,
      or failed to pay or discharge when due any liabilities of which the
      failure to pay or discharge has caused or will cause any material damage
      or risk of material loss to it or the Purchased Assets or the Transferred
      Business;

                  (b) sold, encumbered, assigned or transferred any material
      assets or properties which would have been included in the Purchased
      Assets if the Closing had been held on the Balance Sheet Date or on any
      date since then, except for the sale of inventory in the ordinary course
      of business consistent with past practice and the grant of licenses that
      are in the ordinary course of business;

                  (c) mortgaged, pledged or subjected any of the Purchased
      Assets to any mortgage, lien, pledge, security interest, conditional sales
      contract or other encumbrance of any nature whatsoever, except for
      Permitted Liens that are in the ordinary course of business;

                  (d) made or suffered any amendment or termination of any
      material agreement, contract, commitment, lease or plan relating to the
      Purchased Assets or the Transferred Business to which Seller is a party or
      by which Seller is bound, or canceled, modified or waived any substantial
      debts or claims relating to the Purchased Assets or the Transferred
      Business held by Seller or waived any rights relating to the Purchased
      Assets or the Transferred Business of substantial value, whether or not in
      the ordinary course of business, except as set forth on SCHEDULE
      3.1.11(d);
                  (e) suffered any damage, destruction or loss, whether or not
      covered by insurance, (i) materially and adversely affecting the
      Transferred Business or the prospects or condition (financial or
      otherwise) of the Purchased Assets or the Transferred Business or (ii) of
      any item or items carried on its books of account individually or in the
      aggregate at more than $100,000, or suffered any repeated, recurring or
      prolonged shortage, cessation or interruption of supplies or Utilities or
      other services required to conduct the Transferred Business or operate the
      Purchased Assets;

                  (f) suffered any material adverse change in the Transferred
      Business, the Purchased Assets, or the prospects or condition (financial
      or otherwise) of the Transferred Business or the Purchased Assets;

                  (g) received notice or had knowledge of any occurrence, event
      or condition which is reasonably likely to have a material adverse effect
      on the Transferred Business or the Purchased Assets or the prospects or
      condition (financial or otherwise) thereof;

                                       13
<PAGE>
                  (h) made commitments or agreements for capital expenditures or
      capital additions or betterments relating to the Transferred Business or
      the Purchased Assets exceeding in the aggregate $100,000;

                  (i) increased the salaries or other compensation of, or made
      any advance (excluding advances for ordinary and necessary business
      expenses) or loan to, any of the Plant Employees or made any increase in,
      or any addition to, other benefits to which any such persons may be
      entitled, except for annual salary increases or bonus awards made in the
      ordinary course of business consistent with past practice; or

                  (j) changed any of the accounting principles followed by it or
      the methods of applying such principles.

            3.1.12 Title to Assets. Except as set forth on SCHEDULE 3.1.12 of
the Disclosure Schedule, Seller has good, valid and marketable title to all of
its properties and assets, real, personal and mixed, which would be included in
the Purchased Assets if the Closing took place on the Effective Date, which it
purports to own, and has good leasehold title to those properties and assets it
purports to lease, including without limitation all Tangible Personal Property,
all Inventory and, all Books and Records transferred hereunder or licensed to
Purchaser, free and clear of all mortgages, liens, pledges, security interests,
charges, claims, restrictions and other encumbrances and defects of title of any
nature whatsoever, except for liens that are immaterial in character, amount,
and extent, and which do not detract in any manner from the value or interfere
with the present or proposed use of the Purchased Assets or conduct of the
Transferred Business (collectively, "PERMITTED LIENS").

            3.1.13 Condition and Sufficiency of Assets. Except as set forth on
SCHEDULE 3.1.13, to Seller's knowledge, all equipment and other items of
tangible property and assets which would be included in the Purchased Assets if
the Closing took place on the Effective Date (a) are in good operating condition
and repair, subject to normal wear and maintenance, (b) are usable in the
regular and ordinary course of the Transferred Business, (c) are not in need of
maintenance or repair other than ordinary, recurring maintenance or repair, (d)
conform in all material respects to all applicable Regulations and
Authorizations relating to their use and operation, and (e) together with
intellectual property rights licensed to Purchaser under the Supply Agreement
constitute all of the assets reasonably needed by Purchaser to perform its
obligations under the Supply Agreement and for the continued conduct of the
Transferred Business after the Closing Date. No person other than Seller owns
any equipment or other items of tangible property or assets located at the Plant
or necessary to the operation of the Transferred Business, except for leased
items disclosed in SCHEDULE 3.1.17 of the Disclosure Schedule and items of
immaterial value.

            3.1.14 Compliance with Regulations; Authorizations. Except as set
forth on SCHEDULE 3.1.14 of the Disclosure Schedule, since its inception, to the
knowledge of Seller, Seller has complied in all material respects with each, and
is not in violation of any, law, ordinance, governmental or regulatory rule or
regulation, judgment, decision or order, whether federal, state, local or
foreign, to which Seller with respect to the Transferred Business, the
Transferred Business, any of the Purchased Assets or any employees of Seller
engaged in the Transferred Business are subject, including without limitation
the Federal Food, Drug and Cosmetic Act, 21 U.S.C. Sections 301 (collectively,
"REGULATIONS"). Notwithstanding the foregoing, Seller has complied with each,
and is not in violation of any, Regulations except where such

                                       14
<PAGE>
failure to comply or violation would not have a materially adverse effect on the
Transferred Business or any of the Purchased Assets. No notice has been received
by the Seller and, to the Seller's knowledge, no review or investigation is
pending or threatened for any alleged violation by Seller or any of its
Affiliates of any Regulation. Seller owns, holds, possesses and lawfully uses in
the operation of the Transferred Business all franchises, licenses, permits,
easements, rights, applications, filings, registrations and other authorizations
(collectively, "AUTHORIZATIONS") which are necessary for the conduct of the
Transferred Business as now or previously conducted or for the ownership and use
of the Purchased Assets, all of which are listed and described in SCHEDULE
3.1.14 of the Disclosure Schedule, except where the failure to do so would not
have a materially adverse effect on the Transferred Business. Seller is not in
default, and Seller has not received any notice of any claim of default, and to
the knowledge of the Seller, no event has occurred or circumstance exists that
may reasonably give or serve as a basis for a default or the commencement of any
investigation, with respect to any Authorization. Except as set forth on
SCHEDULE 3.1.14, all such Authorizations are renewable by their terms or in the
ordinary course of business without the need to comply with any special
qualification procedures or to pay any amounts other than routine filing fees.
None of the material Authorizations and, to the knowledge of Seller, none of the
Authorizations will be adversely affected by consummation of the transactions
contemplated by this Agreement. No person other than Seller owns or has any
proprietary, financial or other interest (direct or indirect) in any
Authorization which Seller owns, possesses or uses in the operation of the
Transferred Business. To Seller's knowledge, no Plant Employee has been
debarred, suspended or denied approval to participate in activities subject to
regulation by the Federal Food and Drug Administration or any comparable agency
of any foreign jurisdiction.

            3.1.15 Litigation. Except as set forth on SCHEDULE 3.1.15, no
litigation, arbitration, investigation or other proceeding of or before any
court, arbitrator or governmental or regulatory official, body or authority is
pending against Seller or, to the knowledge of Seller, is threatened against
Seller which could reasonably be expected to have a materially adverse effect on
the Transferred Business, the Purchased Assets or the transactions contemplated
by this Agreement, nor to the knowledge of Seller is there any reasonably likely
basis for any such litigation, arbitration, investigation or proceeding, the
result of which could reasonably be expected to have a material adverse effect
on Seller, the Transferred Business, the Purchased Assets or the transactions
contemplated by this Agreement. Seller is not a party to or subject to the
provisions of any judgment, order, writ, injunction, decree or award of any
court, arbitrator or governmental or regulatory official, body or authority
which would reasonably be expected to adversely affect Seller with respect to
the Transferred Business, the Purchased Assets or the transactions contemplated
by this Agreement.

            3.1.16 Insurance. The assets, properties and operations of Seller
with respect to the Transferred Business and the Purchased Assets are insured
under various policies of property and casualty insurance, all of which are
described in SCHEDULE 3.1.16 of the Disclosure Schedule, which schedule
discloses (a) any and all policies covering general liability, excess liability,
product liability, workers' compensation, auto liability, foreign liability,
property damage, directors and officers liability, fiduciary liability,
employment practices liability, professional liability, errors and omissions
liability, or environmental liability of Seller or its employees, officers,
directors, property, or business, and (b) for each such policy the risks insured
against, insurer name, policy number, policy dates, occurrence and aggregate
coverage limits, retentions and deductible amounts, premium, broker name, and
whether the terms of such

                                       15
<PAGE>
policy provide for retrospective premium adjustments. All such policies are in
full force and effect in accordance with their terms, no notice of cancellation
has been received, and there is no existing default or event which, with the
giving of notice or lapse of time or both, would constitute a default
thereunder. All premiums to date have been paid in full. Seller has not been
refused any insurance, nor has its coverage been limited, by any insurance
carrier to which it has applied for insurance or with which it has carried
insurance during the past five years. SCHEDULE 3.1.16 of the Disclosure
Statement also contains a true and complete list of all outstanding bonds and
other surety arrangements issued or entered into by Seller in connection with
the Transferred Business or the Purchased Assets.

            3.1.17 Agreements, Contracts and Commitments. SCHEDULE 3.1.17 of the
Disclosure Schedule contains accurate lists of the following agreements,
contracts, leases and other documents and understandings (whether written or
oral) to which Seller is a party or has rights with respect to the Transferred
Business or by which any of the Purchased Assets may be bound or affected:

                  (a) any agreement, contract or commitment with any Plant
      Employee or consultant or advisor who provides services relating to the
      Transferred Business or the Purchased Assets involving greater than
      $50,000 per year or that includes severance or similar benefits;

                  (b) any agreement, contract or commitment for the future
      purchase by Seller of products or services relating to the Transferred
      Business which involves $50,000 or more;

                  (c) any agreement, contract or commitment by Seller to sell or
      supply products or to perform services relating to the Transferred
      Business which involves $50,000 or more or which relates to any warranty
      provided by Seller;

                  (d) any partnership, joint venture, sales agency or similar
      agreement, contract or commitment relating to the Transferred Business;

                  (e) any lease under which Seller is either a lessor or lessee
      or relating to any property at which any of the Purchased Assets are
      located;

                  (f) any deed of trust, mortgage, lien or other encumbrance
      affecting any of the Purchased Assets;

                  (g) any agreement, contract or commitment for any capital
      expenditure or leasehold improvement for the Transferred Business or the
      Purchased Assets in excess of $50,000;

                  (h) any agreement, contract or commitment limiting or
      restraining any Plant Employee from engaging or competing in any manner or
      in any business, from disclosing any confidential information, from
      misappropriating any trade secrets or from employing or soliciting the
      employment of any person;

                  (i) any license, franchise, computer service, distributorship
      or other agreement which relates in whole or in part to any software,
      patent, trademark, trade name, service mark or copyright or to any ideas,
      technical assistance or other know-how of third parties used by Seller in
      the conduct of the Transferred Business;

                                       16
<PAGE>
                  (j) any license or other agreement relating in whole or in
      part to any of Seller's patents, trademarks, copyrights, proprietary
      software, ideas, or know-how used in the conduct of the Transferred
      Business;

                  (k) any agreement containing covenants that in any way purport
      to restrict the operation of the Transferred Business or limit the freedom
      of the operator of the Transferred Business to engage in any line of
      business or to compete with any person, including without limitation any
      agreements containing any exclusive or semi-exclusive arrangements; and

                  (l) any other agreement, contract or commitment relating to
      the Transferred Business not otherwise listed on SCHEDULE 3.1.17 of the
      Disclosure Schedule and which either (w) continues over a period of more
      than six months from the Effective Date, (x) exceeds $50,000 in value, (y)
      is otherwise material to Seller, the Transferred Business or the Purchased
      Assets or (z) contains termination or other provisions triggered by the
      transactions contemplated by this Agreement.

                  Each of the agreements, contracts, commitments, leases, plans
      and other instruments, documents and undertakings listed on SCHEDULE
      3.1.17 of the Disclosure Schedule, or not required to be listed thereon
      because of the amount thereof, under which Purchaser is acquiring rights
      or obligations hereunder, except for those listed on SCHEDULE 1.1.2 of the
      Disclosure Schedule or as otherwise set forth on the Disclosure Schedule,
      is referred to herein as an "ASSUMED CONTRACT." To Seller's knowledge,
      each Assumed Contract is valid and enforceable against the parties thereto
      in accordance with its terms, subject to, as to enforcement, (i) to
      bankruptcy, insolvency, reorganization, arrangement, moratorium, and other
      laws of general applicability relating to or affecting creditor's rights,
      (ii) to general principles of equity, whether such enforcement is
      considered in a proceeding in equity or at law. With regard to each
      Assumed Contract to which Seller is a party, Seller is, and to the
      knowledge of Seller, all other parties thereto are, in compliance with the
      provisions thereof; Seller is not, and to the knowledge of Seller, no
      other party thereto is, in default in the performance, observance or
      fulfillment of any obligation, covenant or condition contained therein;
      and to Seller's knowledge no event has occurred which with or without the
      giving of notice or lapse of time, or both, would constitute a material
      default thereunder. Except as set forth and described in SCHEDULE 2.3 of
      the Disclosure Schedule, no Assumed Contract requires a consent of any
      party to its assignment in connection with the transactions contemplated
      by this Agreement.

            3.1.18      Additional Information.

                  (a) SCHEDULE 3.1.18(a) of the Disclosure Schedule contains
      accurate lists of the following, all inventory, equipment, leasehold
      improvements, furniture and fixtures of Seller included in the Purchased
      Assets as of the Effective Date with a value of five thousand dollars
      ($5,000) or more, specifying such items as are owned and such as are
      leased and, with respect to the owned property, specifying its aggregate
      cost or original value and the net book value as of the Balance Sheet Date
      and, with respect to the leased personal property as to which Seller is
      lessee, specifying the identity of the lessor, the rental rate and the
      unexpired term of the lease. Seller shall

                                       17
<PAGE>
      provide an updated Schedule 3.1.18A to Purchaser no less than five (5)
      business days prior to the Closing Date; and

                  (b) SCHEDULE 3.1.18(b) of the Disclosure Schedule contains
      accurate lists of the following, the names and titles of and current (as
      of January 1, 2004) annual base salary or hourly rate for each person
      employed by Seller (directly or by way of an employee leasing or similar
      arrangement) at the Plant as of the Effective Date (the "PLANT
      EMPLOYEES"), and each temporary employee, leased employee, independent
      contractor or other person providing services at the Plant, and together
      with a statement of the full amount and nature of any other remuneration,
      whether in cash or kind, paid to each such person during the most recent
      fiscal year or payable to each such person in the future, including the
      bonuses accrued for each such person and the vacation and severance
      benefits to which each such person is entitled.

            3.1.19      Employee Benefit Plans and Labor Matters.

                  (a) SCHEDULE 3.1.19 of the Disclosure Schedule contains a
      complete list of all employee benefit plans, whether formal or informal,
      whether or not set forth in writing, and whether covering one or more
      Plant Employee, sponsored or maintained by Seller. Seller has delivered to
      Purchaser accurate and complete copies of each such plan.

                  (b) With respect to any employee benefit plan subject to the
      Employee Retirement Income Security Act of 1974, as amended ("ERISA"), (i)
      no withdrawal liability, within the meaning of Section 4201 of ERISA, has
      been incurred by Seller that remains unpaid or otherwise unsatisfied, (ii)
      no liability to the Pension Benefit Guaranty Corporation has been incurred
      by Seller, which liability has not been paid or otherwise satisfied, (iii)
      no accumulated funding deficiency, whether or not waived, within the
      meaning of Section 302 of ERISA or Section 412 of the Internal Revenue
      Code of 1986, as amended (the "CODE") has been incurred, (iv) all
      contributions (including installments) to any plan required by Section 302
      of ERISA and Section 412 of the Code have been timely made, and no
      liability has been incurred under Code Section 4971; (v) each such plan
      that is an employee welfare benefit plan under Section 3(1) of ERISA is
      either unfunded, or is funded through an insurance contract and is not a
      "welfare benefit fund" within the meaning of Code Section 419; (vi) no
      plan has two or more contributing sponsors, at least two of whom are not
      under common control, with the meaning of ERISA Section 4063 or Code
      Section 413(c) (a "MULTIPLE EMPLOYER PLAN"), and Seller at no time within
      the six years before the date hereof, has contributed to or been obligated
      to contribute to any Multiple Employer Plan; (vii) Seller has not incurred
      any liabilities under Code Sections 4980B or 9801, ET SEQ.; (viii) there
      is not now and there are not existing circumstances that would give rise
      to, any requirement for the posting of security with respect any such plan
      or the imposition of any lien on the assets of Seller under ERISA or the
      Code; and (ix) Seller has not announced or created any legally binding
      commitment to create any additional employee benefit plans or to amend or
      modify any existing employee benefit plan.

                  (c) Seller is not a party to any collective bargaining
      agreement or any other agreement which determines the terms and conditions
      of employment of any employee of Seller. No collective bargaining agent
      has been certified as a representative

                                       18
<PAGE>
      of any of the employees of Seller and to Seller's knowledge no
      representation campaign or election is now in progress with respect to any
      of the employees of Seller. Seller has not suffered any strike, slowdown,
      picketing or work stoppage by any union or other group of employees
      affecting the business of Seller; and to the knowledge of Seller, there
      are no efforts underway or threats to effect any of same.

                  (d) Seller is in compliance in all material respects with all
      federal, state and local laws and regulations respecting employment and
      employment practices, terms and conditions of employment and wages and
      hours, and there is no unfair labor practice complaint against Seller
      pending or, to the knowledge of Seller, threatened.

                  (e) No representations have been made by Seller or its
      employees or agents to employees of Seller with respect to Purchaser's
      intentions to employ, or not to employ, Seller's employees or with respect
      to the conditions of any such employment.

            3.1.20 Trade Relations. There exists no actual or, to the knowledge
of Seller, threatened termination, cancellation or limitation of, or any adverse
modification or change in, the business or business relationship of Seller with
any customer, reseller or distributor or any group of customers, reseller or
distributors whose purchases are individually or in the aggregate material to
the Transferred Business, or with any supplier relating to the Transferred
Business, and there exists no present condition or state of facts or
circumstances that would reasonably be expected to adversely affect the
Transferred Business or prevent Purchaser from conducting such business or
business relationships with any such customer, reseller or distributor, such
group of customers, reseller or distributors or any supplier in the same manner
as heretofore conducted by Seller. Seller has used reasonable efforts to keep
available for Purchaser the services of the customers, suppliers, employees and
contractors of Seller active in the conduct of the Transferred Business.

            3.1.21      Intellectual Property.

                  (a) The intellectual property included in the Books and
      Records and licensed to Purchaser under the Supply Agreement constitute
      all of the copyrights, patents, trademarks, trade names, fictitious
      business names, logos, service marks, mask works, computer software,
      customer lists, trade secrets, designs, plans, processes, know-how,
      inventions and other intellectual property rights that are required to
      perform under the Supply Agreement and that are otherwise material to the
      Transferred Business and Seller owns or has the right to use such
      intellectual property free and clear of all liens, claims, charges or
      encumbrances.

                  (b) Seller has not infringed upon or unlawfully or wrongfully
      used any copyright, patent, trademark, and, to Seller's knowledge, Seller
      has not infringed upon or unlawfully or wrongfully used any trade name,
      service mark, mask work, computer software or trade secret owned or
      claimed by another person, where such infringement or use would have a
      materially adverse effect on the Transferred Business, and Seller has not
      received any notice of any claim of infringement or any other claim or
      proceeding relating to any such copyright, patent, trademark, trade name,
      service mark, mask work, computer software or trade secret. Except as set
      forth on SCHEDULE 3.1.21(b), no litigation is pending and no claim has
      been made against Seller or, to the knowledge of Seller, is threatened,
      which contests the right of Seller to sell or license to any person or use
      intellectual property. To the knowledge of Seller, no employee or
      consultant of

                                       19
<PAGE>
      Seller is in violation of any requirement of law applicable to such
      employee or consultant, or any term of any employment or consulting
      agreement, any patent or invention disclosure agreement, any
      non-competition or non-disclosure agreement, or any other contract or
      agreement relating to the relationship of such employee or consultant with
      Seller.

                  (c) Except as disclosed to potential acquirors covered by
      non-disclosure agreements, none of the designs, plans, trade secrets,
      source codes, inventions, processes, procedures, research records,
      know-how and formulae of Seller with respect to the Transferred Business,
      the value of which is contingent upon maintenance of confidentiality
      thereof, has been disclosed, or is required to be disclosed, to any person
      other than employees, consultants, representatives and agents of Seller,
      all of whom are bound by confidentiality or non-disclosure agreements.

                  (d) To the knowledge of Seller, the computer software of
      Seller included in the Books and Records (the "SOFTWARE") performs in all
      material respects in accordance with the documentation and other written
      materials used in connection with the Software, is in machine-readable
      form, contains all current revisions of the Software, and includes all
      object code and source code forms of the Software and all computer
      programs, materials, processes, tapes and know-how related to the
      Software.

                  (e) Seller is the sole owner of the Software and Seller has
      obtained assignments of all rights in and to the Software from any
      developers or other parties who held any rights in the Software. Seller
      has no obligation to compensate any person for the development, use, sale
      or exploitation of the Software nor has Seller granted to any other person
      or entity any license, option or other rights to develop, use, sell or
      exploit in any manner the Software, whether requiring the payment of
      royalties or not.

            3.1.22 Environmental Matters.

                  (a) Seller has obtained and holds all permits, licenses and
      other Authorizations under Regulations relating to pollution or protection
      of the environment, including Regulations relating to emissions,
      discharges, releases or threatened releases of pollutants, contaminants,
      chemicals, or industrial, toxic or hazardous substances or wastes into the
      environment (including without limitation ambient air, surface water,
      groundwater, or land), or otherwise relating to the manufacture,
      processing, distribution, use, treatment, storage, disposal, transport, or
      handling of pollutants, contaminants, chemicals, or industrial, toxic or
      hazardous substances or wastes (collectively, "ENVIRONMENTAL
      REGULATIONS").

                  (b) Seller is in compliance with all Environmental Regulations
      and all terms and conditions of the permits, licenses and other
      Authorizations issued under Environmental Regulations, and Seller also is
      in compliance with all other limitations, restrictions, conditions,
      standards, prohibitions, requirements, obligations, schedules and
      timetables contained in Environmental Regulations or contained in any
      order, decree, judgment, injunction, notice or demand letter issued,
      entered, promulgated or approved thereunder. There is no civil, criminal
      or administrative claim, action, demand, suit, proceeding, study or
      investigation pending or, to the knowledge of Seller, threatened against
      Seller relating to Environmental Regulations (an "ENVIRONMENTAL CLAIM").

                                       20
<PAGE>
                  (c) Except as set forth on SCHEDULE 3.1.22, as of the Closing
      Date, Seller has no knowledge of and has not received written notice of
      any past, present or future events, conditions, circumstances, activities,
      practices, incidents, actions or plans which may interfere with or prevent
      compliance or continued compliance by Seller or the Transferred Business
      with any Environmental Regulations or any order, decree, judgment,
      injunction, notice or demand letter issued, entered, promulgated or
      approved thereunder or which may give rise to any common law or legal
      liability, or otherwise form the basis of any claim, action, demand, suit,
      proceeding, hearing, study or investigation, based on or related to the
      manufacture, processing, distribution, use, treatment, storage, disposal,
      transport, or handling, or the emission, discharge, release or threatened
      release into the environment, of any pollutant, contaminant, chemical, or
      industrial, toxic or hazardous substance or waste at the Plant or the land
      where the Plant is located.

                  (d) Seller represents and warrants as of the Closing Date
      that:

                        (i) Seller has not, and has no knowledge of any other
      person who has, caused any Release, threatened Release, or disposal of any
      Hazardous Material at the Plant; to Seller's knowledge the Plant is not
      adversely affected by any Release, threatened Release or disposal of a
      Hazardous Material originating or emanating from any other property;

                        (ii) The Plant does not contain and has not contained
      any: (a) underground storage tank, (b) material amounts of
      asbestos-containing building material, (c) landfills or dumps, (d)
      hazardous waste management facility as defined pursuant to RCRA or any
      comparable state law, or (e) site on or nominated for the National
      Priority List promulgated pursuant to CERCLA or any state remedial
      priority list promulgated or published pursuant to any comparable state
      law;

                        (iii) Seller has no material liability involving the
      Plant or the land where the Plant is located for response or corrective
      action, natural resource damage, or other harm pursuant to CERCLA, RCRA,
      or any comparable state law; Seller is not subject to, has no notice or
      knowledge of, and is not required to give any notice of any Environmental
      Claim involving Seller or the land where the Plant is located; there are
      no conditions or occurrences at the Plant which could reasonably be
      expected to form the basis for an Environmental Claim against Seller or
      the land where the Plant is located;

                        (iv) The Plant is not subject to any, and Seller has no
      knowledge of any imminent restriction on the ownership, occupancy, use or
      transferability of the land where the Plant is located in connection with
      any (a) Environmental Regulation or (b) Release or disposal of a Hazardous
      Material;

                        (v) To the knowledge of Seller, there are no conditions
      or circumstances at the land where the Plant is located which would
      reasonably be expected to pose a risk to the environment or the health or
      safety of persons; and

                        (vi) Seller has provided or otherwise made available to
      Purchaser any draft or final Phase I environmental site assessment or
      similar report and any other material Environmental Record concerning
      Seller and Plant which Seller possesses or which, to Seller's knowledge,
      has been prepared.

                                       21
<PAGE>
For purposes of this Section, the following terms shall have the following
meanings:

      "CERCLA" shall mean the Comprehensive Environmental Response, Compensation
and Liability Act of 1980, as amended by the Superfund Amendments and
Reauthorization Act of 1986, 42 USC 9601 et seq., and any future amendments that
are made prior to the Closing.

      "ENVIRONMENTAL RECORD" shall mean any document, correspondence, pleading,
report, assessment, analytical result, Authorization, or other record received
from or submitted to a governmental agency concerning a Hazardous Material,
compliance with an Environmental Regulation, or other environmental subject.

      "HAZARDOUS MATERIAL" shall mean any substance, chemical, compound,
product, solid, gas, liquid, waste, byproduct, pollutant, contaminant or
material which is hazardous or toxic and includes, without limitation, (a)
asbestos, polychlorinated biphenyls, and petroleum (including crude oil or any
fraction thereof) and (b) any such material classified or regulated as
"hazardous" or "toxic" pursuant to any environmental law.

      "RCRA" shall mean the Solid Waste Disposal Act, as amended by the Resource
Conversation and Recovery Act of 1976 and Hazardous and Solid Waste Amendments
of 1984, 42 USC 6901 et seq., and any future amendments that are made prior to
the Closing.

      "RELEASE" shall mean any spilling, leaking, pumping, pouring, emitting,
emptying, discharging, injecting, escaping, leaching, dumping, or disposing into
the indoor or outdoor environment, including, without limitation, the
abandonment or discarding of barrels, drums, containers, tanks, and other
receptacles containing any Hazardous Material.

            3.1.23 Restrictions. Seller is not a party to any Assumed Contract,
Authorization, judgment, order, writ, injunction, decree or award which
materially and adversely affects or, so far as Seller can now reasonably
foresee, may in the future be reasonably expected to materially and adversely
affect, the business operations, assets, properties, prospects or condition
(financial or otherwise) of the Transferred Business or the Purchased Assets
after consummation of the transactions contemplated by this Agreement.

            3.1.24 Availability of Documents. Seller has made available to
Purchaser copies of all documents, including without limitation all agreements,
contracts, commitments, leases, plans, instruments, undertakings,
Authorizations, permits, licenses, patents, trademarks, trade names, service
marks, copyrights and applications therefor, listed in the Disclosure Schedule
or referred to herein. Such copies are true and complete and include all
amendments, supplements and modifications thereto or waivers currently in effect
thereunder.

            3.1.25 Bulk Sales Laws. There is no bulk sales law or similar law in
Texas or that otherwise applies to the transactions contemplated by this
Agreement.

            3.1.26 Completeness of Disclosure. No representation or warranty by
Seller in this Agreement nor in any Disclosure Schedule, certificate, statement,
document or instrument furnished or to be furnished to Purchaser pursuant
hereto, or in connection with the negotiation, execution or performance of this
Agreement, contains or will contain any untrue statement of a material fact or
omits or will omit to state a material fact required to be stated herein or
therein or necessary to make any statement herein or therein not misleading.

      3.2 Representations and Warranties of Purchaser. Purchaser represents and
warrants to Seller as follows:

                                       22
<PAGE>
            3.2.1 Corporate Existence. Purchaser is a limited liability company
duly organized, validly existing and in good standing under the laws of the
state of Delaware and qualified to do business in Texas.

            3.2.2 Corporate Power and Authorization. Purchaser has the corporate
power, authority and legal right to execute, deliver and perform this Agreement,
the Assignment and Assumption Agreement and the other agreements, documents and
instruments required to be executed and delivered by Purchaser in accordance
with the provisions hereof (collectively, the "PURCHASER'S DOCUMENTS"). The
execution, delivery and performance of this Agreement and Purchaser's Documents
by Purchaser have been duly authorized by all necessary corporate action. This
Agreement has been duly executed and delivered by Purchaser and constitutes, and
Purchaser's Documents when executed and delivered will constitute, the legal,
valid and binding obligations of Purchaser enforceable against Purchaser in
accordance with their respective terms, subject to any applicable bankruptcy,
insolvency, reorganization, moratorium or similar laws now or hereafter in
effect relating to creditors' rights generally or to general principles of
equity.

            3.2.3 Validity of Contemplated Transactions, Etc. The execution,
delivery and performance of this Agreement and Purchaser's Documents by
Purchaser does not and will not violate, conflict with or result in the breach
of any term, condition or provision of, or require the consent of any other
party to, (a) any existing law, ordinance, or governmental rule or regulation to
which Purchaser is subject, (b) any judgment, order, writ, injunction, decree or
award of any court, arbitrator of governmental or regulatory official, body or
authority which is applicable to Purchaser, (c) the certificate of incorporation
or bylaws of, or any securities issued by, Purchaser, or (d) any mortgage,
indenture, agreement, contract, commitment, lease, plan or other instrument,
document or understanding, oral or written, to which Purchaser is a party or by
which Purchaser is otherwise bound or affected. Except as aforesaid, no
authorization, approval or consent of, and no registration or filing with, any
governmental or regulatory official, body or authority is required in connection
with the execution, delivery and performance of this Agreement and Purchaser's
Documents by Purchaser.

            3.2.4 Completeness of Disclosure. No representation or warranty by
Purchaser in this Agreement nor in any Disclosure Schedule, certificate,
statement, document or instrument furnished or to be furnished to Seller
pursuant hereto, or in connection with the negotiation, execution or performance
of this Agreement, contains or will contain any untrue statement of a material
fact or omits or will omit to state a material fact required to be stated herein
or therein or necessary to make any statement herein or therein not misleading.

      3.3 Survival of Representations and Warranties. All representations and
warranties made by the parties in this Agreement or in any Disclosure Schedule,
certificate, statement, document or instrument furnished hereunder or in
connection with the negotiation, execution or performance of this Agreement
shall survive the Closing for a period of two years except for (i) the
representations and warranties set forth in Section 3.1.9, 3.1.19 and Section
3.1.22 hereof and the Disclosure Schedules thereto, which shall survive the
Closing for a period which terminates upon the lapse of the applicable statute
of limitations, and (ii) the representations and warranties set forth in
Sections 3.1.1 through 3.1.4, inclusive, Section 3.1.7 and Section 3.1.12 hereof
and the Disclosure Schedules thereto, which shall survive the Closing for five
years. Notwithstanding any investigation or audit conducted before or after the
Closing Date or the decision of any party to complete the Closing, each party
shall be entitled to rely upon the representations and warranties set forth
herein and therein, provided, however, each party shall

                                       23
<PAGE>
have an obligation to inform the other party if it has actual knowledge of any
violation of a representation or warranty by the other party prior to Closing.

                     ARTICLE IV - AGREEMENTS PENDING CLOSING

      4.1 Agreements of Seller Pending the Closing. Seller covenants and agrees
with Purchaser that, pending the Closing and except as otherwise agreed to in
writing by Purchaser:

            4.1.1 Business in the Ordinary Course. Seller shall cause the
Transferred Business to be conducted solely in the ordinary course consistent
with past practice.

            4.1.2 Existing Condition.  Seller shall not cause nor permit
to occur any of the events or occurrences described in Section 3.1.11
hereof.

            4.1.3 Maintenance of Physical Assets and Business Relations. Seller
shall continue to maintain and service the physical and intangible assets
included in the Purchased Assets in the same manner as has been its past
practice. Seller shall use its reasonable commercial efforts to maintain the
relations and goodwill with suppliers, customers, the workforce and any others
having business relations relating to the Transferred Business.

            4.1.4 Legal Compliance. Seller shall comply in all material respects
with all Regulations and Authorizations and all other laws, regulations and
ordinances applicable to the Transferred Business, the Purchased Assets or
Seller.

            4.1.5 Updated Disclosure Schedules. Seller shall promptly disclose
to Purchaser in writing any information contained in the representations and
warranties or the Disclosure Schedules which, because of an event occurring
after the Effective Date, is incomplete or is no longer correct as of all times
after the Effective Date until the Closing Date and shall, three days before the
Closing Date, document all such disclosures in an updated Disclosure Schedule.
Such updated Disclosure Schedule shall not be deemed to amend or supplement the
representations and warranties of Seller or the Disclosure Schedules thereto for
the purposes of Article V of this Agreement unless Purchaser shall have
consented thereto in writing.

            4.1.6 Conduct of Business. Seller shall use reasonable efforts to
conduct the Transferred Business and operate the Purchased Assets in such a
manner that on the Closing Date the representations and warranties of Seller
contained in this Agreement shall be true as though such representations and
warranties were made on and as of such date. Furthermore, Seller shall cooperate
with Purchaser and use its reasonable commercial efforts to cause all of the
conditions to the obligations of Purchaser and Seller under this Agreement to be
satisfied on or prior to the Closing Date. In the event that Seller determines
that a condition is not reasonably likely to be so satisfied, Seller shall
promptly notify Purchaser of such determination.

            4.1.7 Exclusive Rights. From and after the Effective Date until the
Closing or earlier termination of this Agreement pursuant to Section 8.1 hereof
and except as permitted by Section 8.1, neither Seller nor any of its
representatives will directly or indirectly solicit or engage in negotiations or
discussions with, disclose any of the terms of this Agreement to, accept any
offer from, furnish any information to, or otherwise cooperate, assist, or
participate with, any person (other than Purchaser and its representatives)
regarding any offer or proposal with respect to the acquisition by purchase,
merger, lease or otherwise of all or any part of the Transferred Business, any
of the Purchased Assets, or a material percentage of the capital stock of
Seller, and Seller shall promptly notify Purchaser of any such discussion, offer
or proposal.

                                       24
<PAGE>
            4.1.8 Access. At all reasonable times prior to Closing, Purchaser
and its representatives shall have the right, upon reasonable advance notice,
to: (a) examine, inspect, and review the Transferred Business and the Purchased
Assets and all books, contracts, agreements, commitments, records and documents
of every kind relating to the Transferred Business or the Purchased Assets,
other than such information relating solely to Excluded Assets; and (b)
interview Plant Employees, suppliers and customers (including prospective
customers) of Seller relating to the Transferred Business or the sale of Adams
Products. Seller shall cooperate with Purchaser and its representatives in
conducting the reviews and other activities described in this Section 4.1.8.

            4.1.9 Press Releases. Except as required by applicable law, Seller
shall not make any public statement or release concerning this Agreement or the
transactions contemplated hereby except in accordance with Section 4.3. If
Seller determines that it shall be required by law to make disclosure of any
such information, Seller shall advise Purchaser as soon as reasonably
practicable and in any event prior to the making of such disclosure.

            4.1.10 Pre-Closing Financial Statements. Seller shall cause to be
prepared and submitted to Purchaser at least ten business days prior to the
Closing Date (i) unaudited balance sheets of both the Seller and the Transferred
Business as of the last day of the month which immediately precedes the Closing
Date and (ii) detailed, unaudited income statements for both the Seller and the
Transferred Business for the period from the Balance Sheet Date through the last
day of the month which immediately precedes the Closing Date. Such statements
shall be prepared in accordance with the requirements for the Financial
Information described in Section 3.1.6 hereto and, to the extent reasonably
practicable, in accordance with generally accepted accounting principles
(excluding footnotes) consistently applied by Seller.

      4.2 Agreements of Purchaser Pending the Closing. Purchaser covenants and
agrees with Seller that, pending the Closing and except as otherwise agreed to
in writing by Seller:

            4.2.1 Actions of Purchaser. Purchaser shall cooperate with Seller
and use its reasonable commercial efforts to cause all of the conditions to the
obligations of Purchaser under this Agreement to be satisfied on or prior to the
Closing Date. In the event that Purchaser determines that a condition is not
reasonably likely to be so satisfied, Purchaser shall promptly notify Seller of
such determination.

            4.2.2 Press Releases. Except as required by applicable law,
Purchaser shall not make any public statement or release concerning this
Agreement or the transactions contemplated hereby except in accordance with
Section 4.3. If Purchaser determines that it shall be required by law to make
disclosure of any such information, Purchaser shall advise Seller as soon as
reasonably practicable and in any event prior to the making of such disclosure.

      4.3 Publicity. From time to time after the execution of this Agreement,
Purchaser and Seller may issue mutually acceptable joint or coordinated press
releases and shall reasonably cooperate with each other to coordinate and
approve any press release or employee briefings.

                 ARTICLE V - CONDITIONS PRECEDENT TO THE CLOSING

      5.1 Conditions Precedent to Purchaser's Obligations. The obligation of
Purchaser under this Agreement to effect the Closing is subject to the
fulfillment or satisfaction, prior to or at the Closing, of each of the
following conditions precedent (unless waived in writing by Purchaser):

                                       25
<PAGE>
            5.1.1 Representations and Warranties True as of the Closing Date.
The representations and warranties of Seller contained in this Agreement or in
any Disclosure Schedule, certificate, statement, document or instrument
furnished to Purchaser hereunder or in connection with the negotiation,
execution or performance of this Agreement shall have been true in all material
respects on the Effective Date without regard to any updated Disclosure Schedule
furnished to Purchaser after the Effective Date and prior to the Closing, and
shall be true in all material respects on the Closing Date with the same effect
as though such representations and warranties were made as of such date.

            5.1.2 Compliance with this Agreement. Seller shall have performed
and complied with all agreements and conditions required by this Agreement to be
performed or complied with by them prior to or at the Closing.

            5.1.3 Closing Certificate. Purchaser shall have received a
certificate from Seller dated the Closing Date, certifying in such detail as
Purchaser may reasonably request that the conditions specified in Sections 5.1.1
and 5.1.2 hereof have been fulfilled in all material respects and certifying
that Seller has obtained all approvals, consents and waivers required with
respect to Seller or the Transferred Business by Section 5.1.7 hereof.

            5.1.4 Opinion of Counsel for Seller Counsel for Seller shall have
delivered to Purchaser a written opinion, dated the Closing Date, in form and
substance reasonably satisfactory to Purchaser and its counsel.

            5.1.5 No Threatened or Pending Litigation. On the Closing Date, no
material suit, action or other proceeding, or injunction or final judgment
relating thereto, shall be known by Seller or Purchaser, to be threatened or to
be pending before any court or governmental or regulatory official, body or
authority in which it is sought to restrain or prohibit or to obtain damages or
other relief in connection with the sale of Adams Products or this Agreement or
the consummation of the transactions contemplated hereby, and no investigation
shall be known by Seller or Purchaser to be ongoing that might result in any
such suit, action or proceeding. In addition, the litigation referred to as
Celltech Pharmaceuticals, Inc. v. Adams Laboratories, Inc. Civil Action No. 03
CV 6146 (U.S. District Court, Western District of New York) shall have been
finally resolved and dismissed in a manner satisfactory to Purchaser in its
discretion.

            5.1.6 Approvals, Consents and Waivers. Seller shall have delivered
to Purchaser, or there shall otherwise have been obtained, all material
approvals, consents and waivers from governmental and other regulatory agencies,
customers, suppliers, lessors and other third parties which, in the reasonable
judgment of Purchaser, are necessary or required to consummate this Agreement
and the transactions contemplated hereby, including without limitation those set
forth on SCHEDULE 2.3 of the Disclosure Schedule and an estoppel certificate
from the lessor under the Real Property Lease consenting to the assumption of
such lease by Purchaser and representing that there are no outstanding claims
against the Seller under such lease. Seller shall also have obtained all
necessary corporate approvals and authorizations.

            5.1.7 Material Adverse Changes. Between the Closing Date and the
Balance Sheet Date, there shall have been no change in the Transferred Business
or the Purchased Assets or the business, operations, prospects or condition
(financial or otherwise) thereof, that either alone or in the aggregate would
have a materially adverse effect on the Transferred Business.

                                       26
<PAGE>
            5.1.8 Removal of Liens. All encumbrances indicated to exist on or
with respect to any of the Purchased Assets by record searches made by Purchaser
prior to the Closing Date (specifically including, but not limited to, those
liens described on SCHEDULE 3.1.12 of the Disclosure Schedule) shall have been
removed, and Seller shall have provided evidence satisfactory to Purchaser of
such removal.

            5.1.9 Financial Information. The financial information furnished to
Purchaser pursuant to Section 4.1.10 shall not reflect any material adverse
change in the business, operations, prospects or financial condition of the
Transferred Business or the Purchased Assets since the Balance Sheet Date.

            5.1.10 Deliverables. Seller shall have delivered the items specified
in Section 2.2(a).

            5.1.11 Payment of Certain Indebtedness. Seller shall have presented
Purchaser with evidence satisfactory to Purchaser that Seller has paid off the
indebtedness identified on Schedule 1.3.1(a).

            5.1.12 Employment. At least one of the Transferring Employees
identified on SCHEDULE 5.1.12 shall have accepted employment offers from
Purchaser.

            5.1.13 Active Ingredient. That certain supply agreement with
Boehringer Ingelheim Chemicals, Inc. set forth on Schedule 2.3 shall have been
amended in a manner that is reasonably satisfactory to Purchaser, provided,
however that if such amendment is not so amended, then such agreement shall not
be assigned hereunder and the Supply Agreement shall be amended to reflect that
Seller shall be responsible for providing Purchaser with the materials that are
currently provided to Seller pursuant to the supply agreement with Boehringer
Ingelheim Chemicals, Inc.

      5.2 Conditions Precedent to the Obligations of Seller. The obligation of
Seller under this Agreement to effect the Closing are subject to the fulfillment
or satisfaction, prior to or at the Closing, of each of the following conditions
precedent (unless waived in writing by Seller):

            5.2.1 Representations and Warranties True as of the Closing Date.
The representations and warranties of Purchaser contained in this Agreement or
in any schedule, certificate, statement, document or instrument furnished to
Seller hereunder or in connection with the negotiation, execution or performance
of this Agreement shall be true in all material respects on the Closing Date
with the same effect as though such representations and warranties were made as
of such date.

            5.2.2 Compliance with this Agreement. Purchaser shall have performed
and complied with all agreements and conditions required by this Agreement to be
performed or complied with by them prior to or at the Closing.

            5.2.3. Opinion of Counsel for Purchaser. Counsel for Purchaser shall
have delivered to Seller a written opinion, dated the Closing Date, in form and
substance reasonably satisfactory to Seller and its counsel.

            5.2.4 Hiring of Employees. Purchaser shall have made offers of
employment to all of the Plant Employees (the "TRANSFERRING EMPLOYEES"),
containing terms of employment with positions and salaries substantially similar
to their currently existing positions and salaries

                                       27
<PAGE>
and with employee benefits that are consistent with Purchaser's current
employment policies and practices.

            5.2.5 Closing Certificate. Seller shall have received a certificate
from Purchaser dated the Closing Date certifying in such detail as Seller may
reasonably request that the conditions specified in Sections 5.2.1 and 5.2.2
hereof have been fulfilled.

            5.2.6 No Pending Litigation. On the Closing Date, no suit, action or
other proceeding, or injunction or final judgment relating thereto, shall be
pending before any court or governmental or regulatory official, body or
authority in which it is sought to restrain or prohibit or invalidate the
transactions contemplated by this Agreement or the consummation of the
transactions contemplated hereby.

            5.2.7 Approvals, Consents and Waivers. All material consents,
approvals, authorizations, registrations and filings required by any
governmental authority shall have been obtained prior to or at the Closing.

            5.2.8 Sales and Use Tax Permits. Purchaser will obtain all necessary
permits from the Texas Comptroller of Accounts for Texas sales tax purposes
prior to the Closing Date.

                          ARTICLE VI - INDEMNIFICATION

      6.1 General Indemnification Obligations of Seller. From and after the
Closing, subject to the limitations of Section 6.3 hereof, Seller shall
reimburse, indemnify and hold harmless Purchaser, all other Affiliates of
Cardinal Health, Inc. ("CARDINAL AFFILIATES") and their respective successors
and assigns and each of their respective officers, agents, directors,
shareholders, insurers and attorneys (each an "INDEMNIFIED PURCHASER PARTY")
against and in respect of any and all damages, losses, deficiencies,
liabilities, costs and expenses (including reasonable legal fees and expenses)
incurred or suffered by any Indemnified Purchaser Party that result from, relate
to or arise out of:

                  (a) any and all liabilities and obligations of Seller of any
      nature whatsoever, except for those liabilities and obligations of Seller
      which Purchaser specifically assumes pursuant to Section 1.4.1 of this
      Agreement, the Assignment and Assumption Agreement, and the Lease
      Assignment and Assumption Agreement;

                  (b) any and all actions, suits, claims, or legal,
      administrative, arbitration, governmental or other proceedings or
      investigations against any Indemnified Purchaser Party that relate to the
      Seller, Adams Products, the Transferred Business or the Purchased Assets
      in which the principal event giving rise thereto occurred prior to the
      Closing Date or which result from or arise out of any action or inaction
      prior to the Closing Date of Seller or any director, officer, employee,
      agent, representative, consultant or subcontractor of Seller, except for
      those liabilities and obligations of Seller which Purchaser specifically
      assumes pursuant to Section 1.4.1 of this Agreement, the Assignment and
      Assumption Agreement, or the Lease Assignment and Assumption Agreement;

                  (c) any misrepresentation, breach of warranty or
      nonfulfillment of any agreement, obligation or covenant on the part of
      Seller under this Agreement or from any misrepresentation in or omission
      from any Disclosure Schedule (including the update thereto delivered
      pursuant to Section 4.1.5), certificate, statement, other document or

                                       28
<PAGE>
      instrument furnished to Purchaser pursuant hereto or in connection with
      the negotiation, execution or performance of this Agreement, the Services
      Agreement or the Supply Agreement; and any and all actions, suits, claims,
      proceedings, investigations, demands, assessments, audits, fines,
      judgments, costs and other expenses, (including, without limitation,
      reasonable legal fees and expenses) incident to any of the foregoing or to
      the enforcement of this Section 6.1;

                  (d) any claim by any person employed by Seller with respect to
      any matter occurring prior to the Closing, including without limitation,
      the termination of such person's employment by Seller, and any severance
      payments or obligations alleged to be imposed by contract or by law; or

                  (e) any liability or claim of any nature whatsoever relating
      to the rights of Transferring Employees to acquire securities of Seller or
      any other equity-related compensation arrangement between Seller and the
      Transferring Employee, including without limitation claims relating to the
      grant, exercise, modification, forfeiture or other termination of options
      to purchase securities of Seller granted to any Transferring Employee,
      whether or not such options or other arrangement are in effect as of the
      Effective Date.

      6.2 General Indemnification Obligation of Purchaser. From and after the
Closing, subject to the limitations of Section 6.3 hereof, Purchaser shall
reimburse, indemnify and hold harmless Seller and its successors or assigns and
their respective officers, agents, directors, shareholders, insurers and
attorneys (each an "INDEMNIFIED SELLER PARTY") against and in respect of any and
all damages, losses, deficiencies, liabilities, costs and expenses (including
reasonable legal fees and expenses) incurred or suffered by any Indemnified
Seller Party that result from, relate to or arise out of:

                  (a) any and all liabilities and obligations of Seller which
      have been specifically assumed by Purchaser pursuant to Section 1.4.1 of
      this Agreement, the Assignment and Assumption Agreement and the Lease
      Assignment and Assumption Agreement;

                  (b) any and all actions, suits, claims, or legal,
      administrative, arbitration, governmental or other proceedings or
      investigations against any Indemnified Seller Party that relate to the
      Purchaser, Transferred Business or the Purchased Assets in which the
      principal event giving rise thereto occurred after the Closing Date or
      which result from or arise out of any action or inaction after the Closing
      Date of Purchaser or any shareholder, director, officer, employee, agent,
      representative, consultant or subcontractor of Purchaser, except for those
      liabilities or obligations which Seller is obligated to indemnify the
      Indemnified Purchaser Parties pursuant to Section 6.1 hereof; or

                  (c) any misrepresentation, breach of warranty or
      non-fulfillment of any agreement, obligation or covenant on the part of
      Purchaser under this Agreement or from any misrepresentation in or
      omission from any schedule, certificate, statement, document or instrument
      furnished to Seller pursuant hereto or in connection with the negotiation,
      execution or performance of this Agreement, the Services Agreement or the
      Supply Agreement, and any and all actions, suits, claims, proceedings,
      investigations, demands, assessments, audits, fines, judgments, costs and
      other expenses, (including,

                                       29
<PAGE>
      without limitation, reasonable legal fees and expenses) incident to any of
      the foregoing or to the enforcement of this Section 6.2.

      6.3 Method of Asserting Claims, Etc. In the event that any claim or demand
for which Seller would be liable to an Indemnified Purchaser Party hereunder is
asserted against or sought to be collected from an Indemnified Purchaser Party
by a third party, the Indemnified Purchaser Party shall promptly notify Seller
of such claim or demand, specifying the nature of such claim or demand and the
amount or the estimated amount thereof to the extent then feasible (which
estimate shall not be conclusive of the final amount of such claim and demand)
(the "CLAIM NOTICE"). Seller shall have 30 days from the giving of the Claim
Notice in accordance with Section 8.8 hereof (the "NOTICE PERIOD") to notify the
Indemnified Purchaser Party, (A) whether or not it disputes its liability to the
Indemnified Purchaser Party hereunder with respect to such claim or demand and
(B) notwithstanding any such dispute, whether or not it desires, at its sole
cost and expense (subject to the limitation in Section 6.3(b) regarding an
Agreed Upon Settlement), to defend the Indemnified Purchaser Party against such
claim or demand.

                  (a) If Seller disputes its liability with respect to such
      claim or demand or the amount thereof (whether or not Seller desires to
      defend the Indemnified Purchaser Party against such claim or demand as
      provided in paragraphs (b) and (c) below), such dispute shall be resolved
      in accordance with Section 6.5 hereof. Pending the resolution of any
      dispute by Seller of its liability with respect to any claim or demand,
      such claim or demand shall not be settled (x) without the prior written
      consent of the Indemnified Purchaser Party, which consent shall not be
      unreasonably withheld and (y) by Purchaser or any Cardinal Affiliate
      without having first provided Seller with written notice of the terms of
      such settlement at least five days prior to the effective date of such
      settlement.

                  (b) In the event that Seller notifies the Indemnified
      Purchaser Party within the Notice Period that they desire to defend the
      Indemnified Purchaser Party against such claim or demand then, except as
      hereinafter provided, Seller shall have the right to defend the
      Indemnified Purchaser Party by appropriate proceedings, which proceedings
      shall be promptly settled or prosecuted by them to a final conclusion in
      such a manner as to avoid any liability to Indemnified Purchaser Party for
      such claim; provided, however, Seller shall not, without the prior written
      consent of the Indemnified Purchaser Party, consent to the entry of any
      judgment against the Indemnified Purchaser Party or enter into any
      settlement or compromise which does not include, as an unconditional term
      thereof, the giving by the claimant or plaintiff to the Indemnified
      Purchaser Party of a release, in form and substance reasonably
      satisfactory to the Indemnified Purchaser Party, from all liability in
      respect of such claim or litigation. If any Indemnified Purchaser Party
      desires to participate in any such defense or settlement, it may do so at
      its sole cost and expense provided that such participation shall be under
      the control of, and exclusively through, Seller. If, in the reasonable
      opinion of the Indemnified Purchaser Party, any such claim or demand or
      the litigation or resolution of any such claim or demand involves an issue
      or matter which could have a materially adverse effect on the business,
      operations, assets, properties or prospects of the Indemnified Purchaser
      Party, including without limitation the administration of the tax returns
      and responsibilities under the tax laws of any Indemnified Purchaser
      Party, then the Indemnified Purchaser Party shall have the right to
      control the defense or settlement of any such claim or demand after giving
      notice to Seller of its intention to take control of

                                       30
<PAGE>
      the defense or settlement of such claim or demand. If the Indemnified
      Purchaser Party should elect to exercise such right, Seller shall have the
      right to participate in the defense or settlement of such claim or demand
      at its sole cost and expense provided that such participation shall be
      under the control of, and exclusively through, such Indemnified Purchaser
      Party; provided, that such claim or demand shall not be settled without
      the prior written consent of the Seller, which consent shall not be
      unreasonably withheld; provided further, that if the third party making
      any such claim or demand has agreed or stated its willingness in writing,
      to (x) settle such claim or demand in exchange solely for the payment of
      money in an agreed upon amount ("AGREED UPON SETTLEMENT") which Seller is
      willing to accept and agrees in writing to reimburse and indemnify
      Indemnified Purchaser Party for and (y) unconditionally release the
      Indemnified Purchaser Parties with respect to the applicable claim or
      demand, but the Indemnified Purchaser Parties do not accept such
      settlement, then in no event shall Seller be liable to reimburse or
      indemnify Indemnified Purchaser Parties with respect to such claim or
      demand in excess of the amount of such Agreed Upon Settlement plus the
      amount of the Indemnified Purchaser Parties' reasonable costs and
      out-of-pocket expenses incurred in connection with such claim or demand
      through the date the Indemnified Purchaser Parties refused to accept the
      Agreed Upon Settlement.

                  (c) (i) If Seller does not defend the Indemnified Purchaser
            Party against such claim or demand, whether by not giving the
            Indemnified Purchaser Party timely notice within the Notice Period
            as provided above or the Indemnified Purchaser Party has taken over
            control of such defense in accordance with the provisions of
            subparagraph (b) above, then the amount of any such claim or demand,
            or that portion thereof as to which such defense is unsuccessful, in
            each case shall be conclusively deemed to be a liability of Seller
            hereunder, unless Seller shall have disputed its liability to the
            Indemnified Purchaser Party hereunder, as provided in paragraph (a)
            above, in which event such dispute shall be resolved as provided in
            Section 6.5 hereof.

                  (ii) In the event an Indemnified Purchaser Party should have a
            claim against Seller hereunder that does not involve a claim or
            demand being asserted against or sought to be collected from it by a
            third party, the Indemnified Purchaser Party shall promptly send a
            Claim Notice with respect to such claim to Seller. If Seller
            notifies the Indemnified Purchaser Party within the Notice Period
            that it disputes its liability with respect to such claim or demand,
            such dispute shall be resolved in accordance with Section 6.5
            hereof. If Seller does not notify the Indemnified Purchaser Party
            within the Notice Period that they dispute such claim, the amount of
            such claim shall be conclusively deemed a liability of Seller
            hereunder.

                  (d) All claims for indemnification by an Indemnified Seller
      Party under this Agreement shall be asserted and resolved under the
      procedures set forth above substituting in the appropriate places
      "Indemnified Seller Party" for "Indemnified Purchaser Party" and
      variations thereof and "Purchaser" for "Seller" and variations thereof.

                  (e) All claims for indemnification for an alleged
      misrepresentation or breach of warranty contained in Section 3.1 or
      Section 3.2 hereof or in any Disclosure

                                       31
<PAGE>
      Schedule, certificate, statement, document or instrument furnished under
      this Agreement or in connection with the negotiation, execution or
      performance of this Agreement shall be asserted during the period in which
      any such representation or warranty survives pursuant to Section 3.3
      hereof.

                  (f) No party shall bring a claim for indemnification under
      this Section 6.3 unless the aggregate amount of all claims for such
      indemnification exceeds $* , in which event the party may bring any
      and all claims for such indemnification without regard to such dollar
      threshold, including the first dollar of any and all claims for such
      indemnification; provided, however, in no event shall a party's claims for
      indemnification under this Section 6.3 exceed $* , in the
      aggregate. Notwithstanding the foregoing, the limitations set forth in
      this Section 6.3(f) shall not apply with respect to any claim pursuant to
      Section 6.1(e).

      6.4 Payment. Upon the determination of liability under Section 6.3 or 6.5
hereof, the appropriate party shall pay to the other, as the case may be, within
ten business days after such determination, the amount of any claim for
indemnification made hereunder. In the event that the indemnified party is not
paid in full for any such claim pursuant to the foregoing provisions promptly
after the other party's obligation to indemnify has been determined in
accordance herewith, it shall have the right, notwithstanding any other rights
that it may have against any other person, to setoff the unpaid amount of any
such claim against any amounts owed by it or its Affiliates under this Agreement
or any other agreements entered into pursuant to this Agreement, Seller's
Documents or Purchaser's Documents.

      6.5 Dispute Resolution. If any Dispute arises between the parties, such
Dispute shall be presented to the respective presidents or senior executives of
Purchaser and Seller for their consideration and resolution. If such parties
cannot reach a resolution of the Dispute, then such Dispute shall be resolved by
binding alternative dispute resolution in accordance with the then existing
commercial arbitration rules of CPR Institute for Dispute Resolution, 366
Madison Avenue, New York, NY 10017. Arbitration shall be conducted in the
Morristown, NJ. "Dispute" means any dispute, controversy or disagreement between
the parties in connection with this Agreement. Nothing herein shall restrict the
right of a party to seek a preliminary injunction or other judicial relief if in
that party's judgment such judicial proceedings are necessary or appropriate to
avoid irreparable damage. All applicable statutes of limitation shall be tolled
while the procedures specified in this Section 6.5 are pending. The parties will
take all such actions, if any, which may be necessary or appropriate to
effectuate such tolling.

      6.6 Other Rights and Remedies. The indemnification rights of the parties
under this Article VI are independent of and in addition to such other rights
and remedies as the parties may have at law or in equity or otherwise for any
misrepresentation, breach of warranty or failure to fulfill any agreement or
covenant hereunder on the part of any party hereto, including without limitation
the right to seek specific performance, an injunction, rescission or
restitution, none of which rights or remedies shall be affected or diminished
hereby.

                       ARTICLE VII - POST CLOSING MATTERS

      7.1 Employee Benefits. After the Closing Date, Purchaser shall make
available to each of the Plant Employees who accepts employment with Purchaser
that portion of all sick pay and accrued vacation time (or pay in lieu thereof)
which have been accrued on behalf of that employee as of the Closing Date, in
each case in accordance with such policies as Purchaser may

                                       32

---------
* Omitted information is the subject of a request for confidential
  treatment pursuant to Rule 406 under the Securities Act of 1933 and
  has been filed separately with the Securities and Exchange Commission.
<PAGE>
adopt from time to time. Seller shall be responsible for and shall promptly
discharge any liability or obligation for any other benefits (including the
arrangements, plans and programs set forth in SCHEDULE 3.1.19 of the Disclosure
Schedule), wages, salaries and other amounts which have been accrued on behalf
of that employee (or is attributable to expenses properly incurred by that
employee) as of the Closing Date or any worker's compensation claims related to
events occurring prior to the Closing, and Purchaser shall assume no liability
therefor. No portion of the assets of any plan, fund, program or arrangement,
written or unwritten, heretofore sponsored or maintained by Seller (and no
amount attributable to any such plan, fund, program or arrangement) shall be
transferred to Purchaser, and Purchaser shall not be required to continue any
such plan, fund, program or arrangement after the Closing Date. The amounts
payable on account of all benefit arrangements shall be determined with
reference to the date of the event by reason of which such amounts become
payable, without regard to conditions subsequent, and Purchaser shall not be
liable for any claim for insurance, reimbursement or other benefits payable by
reason of any event which occurs prior to the Closing Date. All amounts payable
by Seller directly to Plant Employees who accept employment with Purchaser, or
to any fund, shall be paid by Seller within 30 days after the Closing Date to
the extent that such payment is not inconsistent with the terms of such fund,
program, arrangement or plan. For all purposes, all employees of Seller who are
employed by Purchaser on or after the Closing Date shall be granted credit for
years of service with Seller.

      7.2 Transferring Employees; Non-Solicitation. As of the Closing Date,
Purchaser shall have offered employment to, and Seller shall use its reasonable
commercial efforts to assist Purchaser in employing as new employees of
Purchaser, the Transferring Employees. As a condition to such employment by
Purchaser, Purchaser may require each Transferring Employee to pass a drug test
and background check and to execute and deliver to Purchaser the "Certificate of
Compliance with Cardinal's Business Ethics Program," the form of which
Certificate has previously been provided to Seller. Purchaser shall notify
Seller of the identity of the Transferring Employees prior to the Closing.
Seller shall terminate, effective as of the Closing Date, all employment or
contracting arrangements it has with any of the Transferring Employees. For a
period of six (6) months after the Closing Date, Seller shall not directly or
indirectly solicit employment of or offer employment to any (a) Transferring
Employee, (b) individual who is then an employee of Purchaser or any Affiliate
of Purchaser, or (c) Transferring Employee who has terminated employment with
Purchaser or any Affiliate of Purchaser without the consent of Purchaser or such
other Affiliate within 180 days of such solicitation or offer. For a period of
six (6) months after the Closing Date, Purchaser shall not directly or
indirectly solicit employment or offer employment to any person that is an
employee of Seller or any Affiliate of Seller immediately after the Closing (the
"NON-TRANSFERRING EMPLOYEES"), without the prior written consent of the Seller
or such other Affiliate within 180 days of such solicitation or offer. For a
period commencing six (6) months after the anniversary of the Closing Date and
expiring twelve (12) months after the anniversary of the Closing Date, neither
party will directly solicit for employment or offer employment to employees of
the other party; however, the Seller may hire Transferring Employees who respond
to general solicitations not targeted at the Transferring Employees, and the
Purchaser may hire Non-Transferring Employees who respond to general
solicitations not targeted at Non-Transferring Employees. If Seller provides
Purchaser with notice within 90 days after the Closing Date that a person set
forth on Schedule 7.2 is able to perform the function of the job previously
performed by such person on behalf of the Seller at

                                       33
<PAGE>
the Plant, the Purchaser shall offer employment to such person and shall
otherwise treat such person as a Transferring Employee.

      7.3 Discharge of Obligations. From and after the Closing Date, Seller
shall pay and discharge, in accordance with past practice but not less than on a
timely basis, all obligations and liabilities of Seller that have not been
assumed by Purchaser under Section 1.4.1 of this Agreement, the Assignment and
Assumption Agreement and the Lease Assignment and Assumption Agreement. From and
after the Closing Date, the Purchaser shall pay and discharge, in accordance
with its past practice, all obligations of the Seller that have been assumed by
Purchaser under Section 1.4.1 of this Agreement, the Assignment and Assumption
Agreement and the Lease Agreement and Assumption Agreement.

      7.4 Payments Received. Seller and Purchaser agree that after the Closing
they will hold and will promptly transfer and deliver to the other, from time to
time as and when received by them, any cash, checks with appropriate
endorsements (using their best efforts not to convert such checks into cash), or
other property that they may receive on or after the Closing which properly
belongs to the other party, including without limitation any insurance proceeds,
and will account to the other for all such receipts.

      7.5 Further Assurances. Seller from time to time after the Closing, at
Purchaser's request, shall execute, acknowledge and deliver to Purchaser such
other instruments of conveyance and transfer and shall take such other actions
and execute and deliver such other documents, certifications and further
assurances as Purchaser may reasonably require in order to vest more effectively
in Purchaser, or to put Purchaser more fully in possession of, any of the
Purchased Assets, or to better enable Purchaser to complete, perform or
discharge any of the liabilities or obligations assumed by Purchaser at the
Closing pursuant to Section 1.4.1 of this Agreement, the Assignment and
Assumption Agreement and the Lease Assignment and Assumption Agreement. Each
party hereto will cooperate with the other party and execute and deliver to the
other party such other instruments and documents and take such other actions as
may be reasonably requested from time to time by the other party as necessary to
carry out, evidence and confirm the intended purposes of this Agreement.

       7.6 Specific Performance. The parties hereto recognize and agree that in
the event of a breach by Seller of this Article VII, money damages may not be an
adequate remedy to Purchaser and, even if money damages were adequate, it may be
impossible to ascertain or measure with any degree of accuracy the damages
sustained by Purchaser therefrom. Accordingly, if there should be a breach or
threatened breach by Seller of provisions of this Article VII, Purchaser may be
entitled to an injunction restraining Seller from any breach without showing or
proving actual damage sustained by Purchaser. Nothing in the preceding sentence
shall limit or otherwise affect any remedies that Purchaser may otherwise have
under applicable law.

                          ARTICLE VIII - MISCELLANEOUS

      8.1   Termination.

            (a) Anything herein or elsewhere to the contrary notwithstanding,
      this Agreement may be terminated by written notice of termination at any
      time before the Closing Date only as follows:

                  (i)  by mutual consent of Seller and Purchaser;

                                       34
<PAGE>
                  (ii) by Purchaser (A) at any time if the representations and
            warranties of Seller made in connection with this Agreement were
            incorrect in any material respect when made or at any time
            thereafter, (B) upon written notice to Seller given at any time on
            or after the day that is 120 days after the Effective Date (or such
            later date as shall have been specified in a writing authorized on
            behalf of Seller and Purchaser) if any of the conditions precedent
            set forth in Section 5.1 hereof have not been met (unless the
            failure of the conditions to have been met is solely due to
            Purchaser's failure to comply with the terms of this Agreement, in
            which case such period shall be extended for a reasonable time
            sufficient to permit Seller to cause the condition to be met), or
            (C) at any time if Seller shall have failed to perform or comply in
            all material respects with all covenants, agreements and obligations
            under this Agreement and Seller shall have failed to cure such
            nonperformance or noncompliance within 30 days of the receipt from
            Purchaser of written notice of such nonperformance or noncompliance;
            and

                  (iii) by Seller, (A) at any time if the representations and
            warranties of Purchaser made in connection with this Agreement were
            incorrect in any material respect when made or at any time
            thereafter, (B) upon written notice to Purchaser given at any time
            on or after the day that is 120 days after the Effective Date (or
            such later date as shall have been specified in a writing authorized
            on behalf of Seller and Purchaser) if any of the conditions
            precedent set forth in Section 5.2 hereof have not been met (unless
            the failure of the condition to have been met is solely due to
            Seller's failure to comply with the terms of this Agreement, in
            which case such period shall be extended for a reasonable time
            sufficient to permit Purchaser to cause the condition to be met), or
            (C) at any time if Purchaser shall have failed to perform or comply
            in all material respects with all covenants, agreements and
            obligations under this Agreement and Purchaser shall have failed to
            cure such nonperformance or noncompliance within 30 days of the
            receipt from Seller of written notice of such nonperformance or
            noncompliance or (D) by Seller by providing written notice that
            Seller has entered into a binding agreement with a major
            pharmaceutical company providing for the sale of all or a portion of
            the Purchased Assets and/or the transfer of rights to manufacture
            some or all of the Adams Products in connection with the license or
            sale of rights to market the Adams Products.

            (b) In the event of the termination of this Agreement pursuant to
      the provisions of this Section 8.1, this Agreement (except for this
      Section 8.1 and Sections 8.4 and 8.9 hereof which shall survive) shall
      become void and have no effect, without any liability on the part of any
      of the parties or their directors or officers or shareholders in respect
      of this Agreement except as otherwise set forth in this Section 8.1.

            (c) If this Agreement is terminated (i) by Purchaser pursuant to
      Section 8.1(a)(ii), or (ii) by Seller pursuant to Section 8.1(a)(iii)(D),
      then Seller shall immediately pay to Purchaser a termination fee (the
      "TERMINATION FEE") in an amount equal to $500,000, in lieu of all other
      remedies or damages; provided, however, the Seller shall not be required
      to pay the Termination Fee if this Agreement is terminated pursuant to
      Section 8.1(a)(i). The parties agree (1) the agreements contained in this
      Section 8.1(c) are an integral part of the transactions contemplated by
      this Agreement, (2) the foregoing

                                       35
<PAGE>
      Termination Fee constitutes liquidated damages, not a penalty, and (3) the
      Termination Fee is necessary because the termination of this Agreement in
      a manner giving rise to the Termination Fee would result in substantial
      damages to Purchaser which may be difficult to calculate accurately.

      8.2   Brokers' and Finders' Fees.

            (a) Seller shall pay all brokerage fees, finder's fees and other
      commissions payable to any person in respect of this Agreement or the
      consummation of the transactions contemplated hereby as a result of the
      dealings, arrangements or agreements with any such person by Seller and
      Seller agrees to indemnify and hold harmless Purchaser against any and all
      claims, losses, liabilities and expenses which may be asserted against or
      incurred by it as a result of the dealings, arrangements or agreements
      with any such person by Seller.

            (b) Purchaser represents and warrants that no brokerage fee,
      finder's fee or other commission in respect of this Agreement or the
      consummation of the transactions contemplated hereby is due by it to any
      third party, and Purchaser agrees to indemnify and hold harmless Seller
      against any and all claims, losses, liabilities and expenses which may be
      asserted against or incurred by it as a result of Purchaser's dealings,
      arrangements or agreements with or any such person.

            (c) The limitations set forth in Section 6.3(f) shall not apply to
      any breach of a representation, warranty, covenant or other agreement set
      forth in this Article VIII.

      8.3 Sales, Transfer and Documentary Taxes, Etc. Purchaser and Seller shall
each pay 50% of all federal, state and local sales, documentary and other
transfer taxes, if any, due as a result of the purchase, sale or transfer of the
Purchased Assets in accordance herewith and shall indemnify, reimburse and hold
harmless the other in respect of the liability for payment of or failure to pay
any such taxes or the filing of or failure to file any reports required in
connection therewith. For clarification, it is understood that any tax relating
to any gain recognized by Seller on the transfer of any of the Purchased Assets
shall be borne exclusively by Seller. Seller shall not be responsible for any
use tax or similar tax relating to the transfer of the Purchased Assets from
Texas to another jurisdiction.

      8.4 Expenses. Except as provided for in Section 8.3, each party shall bear
its respective legal, accounting, and other costs and expenses associated with
the transactions contemplated by this Agreement (including without limitation
the costs of any accountants, attorneys, brokers and financial advisors).

      8.5 Contents of Agreement; Parties in Interest; Etc. This Agreement sets
forth the entire understanding of the parties hereto with respect to the
transactions contemplated hereby. It shall not be amended or modified except by
written instrument duly executed by each of the parties hereto. Except as
provided in Article VI and except for Affiliates of Purchaser which are intended
third party beneficiaries of this Agreement, this Agreement is not intended to
confer upon any other person not a party hereto any rights or remedies
hereunder. Any and all previous agreements and understandings between or among
the parties hereto regarding the subject matter hereof, whether written or oral,
are superseded by this Agreement.

      8.6 Assignment and Binding Effect. This Agreement may not be assigned by
Seller without the prior written consent of Purchaser. Purchaser may assign its
rights and obligations to

                                       36
<PAGE>
any Cardinal Affiliate (provided that the Purchaser shall remain liable to make
all required payments under this Agreement). Subject to the foregoing, all of
the terms and provisions of this Agreement shall be binding upon and inure to
the benefit of and be enforceable by the successors and assigns of each party
hereto.

      8.7 Waiver and Amendment. Any term or provision of this Agreement may be
waived at any time by the party entitled to the benefit thereof by a written
instrument duly executed by such party. No amendment of any provision of this
Agreement shall be valid unless it shall be in writing and signed by the
Purchaser and Seller.

      8.8 Notices. Any notice, request, demand, waiver, consent, approval or
other communication which is required or permitted hereunder shall be in writing
and shall be deemed given only if delivered personally or sent by telecopier or
by registered or certified mail, postage prepaid, as follows:

            If to Purchaser, to:

            Cardinal Health PTS, LLC
            7000 Cardinal Place
            Dublin, Ohio 43017
            Telecopier No.:  (614) 757-5051
            Attention:  Vice President and Associate General Counsel,
            Pharmaceutical Technologies & Services

            With a required copy to:

            If to Seller, to:
            Adams Laboratories, Inc.
            Colonial Court
            409 Main Street
            Chester, New Jersey 07930
            Telecopier No: (908) 879-9784
            Attention: Walter E. Riehemann, Esq.

            With a required copy to:

            Holland & Knight LLP
            100 North Tampa Street
            Suite 4100
            Tampa, Florida 33602
            Telecopier No: (813) 229-0134
            Attention: Robert J. Grammig

   or to such other address or telecopier number as the addressee may have
   specified in a notice duly given to the sender as provided herein. Such
   notice, request, demand, waiver, consent, approval or other communication
   will be deemed to have been given as of the date so delivered, telecopied or
   mailed.

                                       37
<PAGE>
      8.9   Confidential Information.

            8.9.1 Cardinal Information. From and after the Effective Date,
Seller shall not disclose to any person (other than Purchaser or any Cardinal
Affiliate) in any manner, directly or indirectly, any confidential or
proprietary information or data of Purchaser or any Cardinal Affiliate whether
of a technical or commercial nature ("CONFIDENTIAL INFORMATION"), or use or
assist any person (other than any Cardinal Affiliates) to use, in any manner,
directly or indirectly, any Confidential Information, excepting only use of such
data or information as is at the time generally known to the public and which
did not become generally known through the breach of any provisions of this
Agreement. As used in this Agreement, Confidential Information includes but is
not limited to any and all (i) computer software proprietary to any Cardinal
Affiliate, together with all documentation for any such software; (ii)
confidential, proprietary or trade secret information submitted to any Cardinal
Affiliate in confidence by its suppliers, employees, consultants, customers or
others; (iii) information of any Cardinal Affiliate concerning operations,
customers or prospects, terms and conditions of sale and prices, technical
knowledge relating to customer requirements, and knowledge of markets for its
products and services; and (iv) subject to the successful consummation of the
Closing, all confidential, proprietary, and similar information of the
Transferred Business, other than information relating solely to the Excluded
Assets. Seller acknowledges that all information, whether falling within the
above definition or otherwise (unless specifically excepted above), shall be
presumed to be Confidential Information if any Cardinal Affiliate takes measures
designed to prevent it, in the ordinary course of business, from being available
to persons other than those selected by Cardinal Affiliates to have access
thereto for limited purposes. All information disclosed to Seller or its
Affiliates or to which Seller or its Affiliates obtains access, which such
person has reasonable basis to believe to be Confidential Information, or which
such person has reasonable basis to believe that any Cardinal Affiliate treats
as being Confidential Information, shall be presumed to be Confidential
Information. Notwithstanding the foregoing this Section 8.9.1 shall not restrict
Seller from using or disclosing information related to Purchaser or any Cardinal
Affiliate properly obtained in the course of other business relationships for
any proper purpose otherwise permitted.

            8.9.2 Seller Information. From and after the Effective Date, the
Cardinal Affiliates shall not disclose to any person in any manner, directly or
indirectly, any confidential or proprietary information or data of Seller
whether of a technical or commercial nature ("SELLER CONFIDENTIAL INFORMATION"),
or use or assist any person (other than Seller or any of Seller's Affiliates) to
use, in any manner, directly or indirectly, any Seller Confidential Information,
excepting only use of such data or information as is at the time generally known
to the public and which did not become generally known through the breach of any
provisions of this Agreement. As used in this Agreement, Seller Confidential
Information includes but is not limited to any and all (i) computer software
proprietary to Seller, together with all documentation for any such software;
(ii) confidential, proprietary or trade secret information submitted to Seller
in confidence by its suppliers, employees, consultants, customers or others;
(iii) information of Seller or any of its Affiliates concerning operations,
customers or prospects, terms and conditions of sale and prices, technical
knowledge relating to customer requirements, and knowledge of markets for its
products and services; and (iv) all confidential, proprietary, and similar
information of the Transferred Business and the Adams Products. Purchaser
acknowledges that all information, whether falling within the above definition
or otherwise, shall be presumed to be Seller Confidential Information if Seller
or any of its Affiliates takes measures

                                       38
<PAGE>
designed to prevent it, in the ordinary course of business, from being available
to persons other than those selected by Seller or its Affiliates to have access
thereto for limited purposes. All information disclosed to Cardinal Affiliates
or to which Cardinal Affiliates obtain access, which such person has reasonable
basis to believe to be Seller Confidential Information, or which such person has
reasonable basis to believe Seller or its Affiliates treats as being Seller
Confidential Information, shall be presumed to be Seller Confidential
Information. Effective upon the Closing, Seller Confidential Information which
relates solely to the Transferred Business shall become Confidential Information
of Purchaser and the provisions of Section 8.9.1 shall apply thereto and the
provisions of this Section 8.9.2 shall cease to apply thereto. Notwithstanding
the foregoing, this Section 8.9.2 shall not restrict Purchaser or any Cardinal
Affiliate from using or disclosing information related to Seller properly
obtained in the course of other business relationships for any proper purpose
otherwise permitted. Seller acknowledges the Purchaser and its Affiliates have
and continue to acquire and develop substantial know-how, expertise and
information relating to the pharmaceutical business and related industries
including without limitation relating to the manufacture of tablets and other
products. Nothing in this Agreement shall be deemed to restrict in any manner
the ability of Purchaser and its Affiliates to engage in manufacturing and
related activities whether through the use of Transferred Know How or otherwise.
The foregoing shall not be construed as a license to any patented intellectual
property of Seller.

      8.10  Counterparts.  This Agreement may be executed in two or more
counterparts that together shall constitute a single agreement.

      8.11 Pronouns. All pronouns used in this Agreement shall be deemed to
refer to the masculine, feminine, neuter, singular or plural, as the identity of
the person(s) may require.

      8.12 Governing Law. This Agreement shall be governed in all respects,
including validity, interpretation and effect, by the internal laws of the State
of Delaware without regard to the principles of conflict of laws thereof.

      8.13 No Strict Construction. The language used in this Agreement shall be
deemed to be the language chosen by the parties hereto to express their mutual
intent, and no rule of strict construction will be applied against any party.

      8.14 Knowledge. For purposes of this Agreement, an individual shall be
deemed to have "knowledge" of a particular fact or other matter if such
individual is actually aware of such fact or other matter or if such person, in
the conduct of their duties, should have become aware of such fact or other
matter. Seller shall be deemed to have "knowledge" of a particular fact or other
matter that any individual who is serving as a director or executive officer of
such entity (or in any similar capacity) or any other person set forth on
SCHEDULE 8.14 has, or at any time had, knowledge of such fact or other matter.

      8.15 Severability. If any provision of this Agreement, or the application
thereof to any person, place or circumstance, shall be held by a court of
competent jurisdiction to be invalid, unenforceable or void, the remainder or
this Agreement and such provisions as applied to other persons, places and
circumstances shall not be effected thereby and remain in full force and effect
only if, after excluding the portion deemed to be unenforceable, the remaining
terms shall provide for the consummation of the transactions contemplated hereby
in substantially the same manner as originally set forth at the later of the
Effective Date was executed or last amended.

                                       39
<PAGE>
      8.16 Definitions. The following terms are defined in the sections
indicated below:

<TABLE>
<CAPTION>
Term                                    Where Defined
<S>                                     <C>
Adams Products                          Recital A
Affiliate                               1.1.1(i)
Agreed Upon Settlement                  6.3 (b)
Agreement                               Introduction
Assumed Contract                        3.1.17
Assumed Liabilities                     1.4.1
Authorizations                          3.1.14
Balance Sheet                           3.1.6
Balance Sheet Date                      3.1.6
Books and Records                       1.1.1 (e)
Cardinal Affiliate                      6.1
Cash Payment                            1.3.1 (a)
CERCLA                                  3.1.22
Claim Notice                            6.3
Closing                                 2.1
Closing Date                            2.1
Closing Inventory Balance               1.3.1(b)
COBRA                                   1.4.1 (e)
Code                                    3.1.19(b)
Confidential Information                8.9.1
Disclosure Schedule                     3.1
Effective Date                          Introduction
Environmental Claim                     3.1.22 (b)
Environmental Record                    3.1.22
Environmental Regulations               3.1.22 (a)
ERISA                                   3.1.19(b)
Excluded Assets                         1.1.2
Financial Information                   3.1.6
Hazardous Material                      3.1.22
Indemnified Purchaser Party             6.1
Indemnified Seller Party                6.2
Inventory                               1.1.1 (c)
Inventory Cost                          1.3.1 (b)
Multiple Employer Plan                  3.1.19(b)
Notice Period                           6.3
Non-Transferring Employees              7.2
Permitted Liens                         3.1.12
Plant                                   Recital A and 1.1.1(a)
Plant Employees                         3.1.18 (b)
Purchase Price                          1.3.1
Purchased Assets                        1.1.1
Purchaser                               Introduction
Purchaser's Documents                   3.2.2
</TABLE>

                                       40
<PAGE>
<TABLE>
<S>                                     <C>
Quality Agreement                       2.2(a)(v)
RCRA                                    3.1.22
Real Property Lease                     1.1.1 (a)
Regulations                             3.1.14
Release                                 3.1.22
Seller                                  Introduction
Seller Confidential Information         8.9.2
Seller's Documents                      3.1.2
Seller's Proprietary Rights             1.1.2(b)
Services Agreement                      2.2(a)(iii)
Software                                3.1.21 (d)
Sublease Agreement                      2.2(a)(vi)
Supply Agreement                        2.2 (a) (iv)
Tangible Personal Property              1.1.1 (b)
Tax Returns                             3.1.9
Taxes                                   3.1.9
Termination Fee                         8.1(c)
Transferred Business                    Recital A
Transferred Know How                    1.1.1(h)
Transferring Employees                  5.2.4
Transition Agreement                    2.2(a)(vii)
Upgrade Savings                         1.3.1 (c)
Utilities                               3.1.7 (b)
</TABLE>

                            [SIGNATURE PAGE FOLLOWS]

                                       41
<PAGE>
      IN WITNESS WHEREOF, the undersigned have executed this Agreement, or have
caused this Agreement to be executed by their duly authorized officer, as of the
date first written above.

SELLER:                                  PURCHASER:

ADAMS LABORATORIES, INC.                 CARDINAL HEALTH PTS, LLC

By:     /s/ Michael Valentino         By:      /s/ Thomas J. Stuart
        --------------------------             --------------------------------
Name:   Michael Valentino             Name:    Thomas J.Stuart
        --------------------------             --------------------------------

Title:  President and CEO             Title:   President, Modified Release Tech.
        --------------------------             --------------------------------

                                       42
<PAGE>
Index of Exhibits

Exhibit A-1 Form of Lease Assignment and Assumption Agreement

Exhibit A-2 Form of Bill of Sale

Exhibit A-3 Form of Assignment and Assumption Agreement

Exhibit B   Form of Commercial Services Agreement

Exhibit C   Form of Supply Agreement

Exhibit D   Form of Quality Agreement

Exhibit E   Form of Sublease Agreement

Exhibit F   Form of Transition Services Agreement

                                       43
<PAGE>
                                                                     Exhibit A-1

                       ASSIGNMENT AND ASSUMPTION AGREEMENT
                               AND LESSOR CONSENT

      ASSIGNMENT AND ASSUMPTION AGREEMENT AND LESSOR CONSENT made as of April 1,
2004, by and among Adams Laboratories, Inc., a Texas corporation d/b/a Adams
Respiratory Therapeutics (the "Assignor"), Cardinal Health PTS, LLC, a Delaware
limited liability company (the "Assignee"), and The Estate of James Campbell,
Deceased ("Lessor").

                              W I T N E S S E T H:

      WHEREAS, CCP Investment Properties, Ltd., a Texas limited partnership
("Original Landlord") and Tenant have previously executed a document entitled
"Industrial Lease Agreement" (as amended as described below, the "Lease") with
regard to 71,108 square feet of lease space currently occupied by Assignor
located at 14801 Sovereign Road, Forth Worth, Texas (the "Original Premises");
and

      WHEREAS, Original Landlord and Assignor previously executed a document
entitled "Amendment to Industrial Lease Agreement" dated October 29, 1990, and
AEW # 14 Corporation, as successor landlord, and Tenant executed a document
entitled "Second Amendment to Industrial Lease Agreement" dated March 15, 1991,
both of said amendments relating to the security deposit due under the terms of
the Lease; and

      WHEREAS, Metropolitan Life Insurance Company, as successor landlord
("Metropolitan"), and Assignor executed a document entitled "Third Amendment to
Industrial Lease Agreement" dated January 27, 1993 (the "Third Amendment") which
amendment added 36,020 square feet of "Expansion Premises" to the Original
Premises; and

      WHEREAS, Metropolitan and Assignor executed a document entitled "Fourth
Amendment to Lease Agreement" dated July 27, 1993 (the "Fourth Amendment"),
which amendment added 3000 square feet of "Second Expansion Space" to the
Original Premises so that the premises covered by the Lease, as amended by the
Third Amendment and the Fourth Amendment, totaled a sum of 110,128 square feet
(the "Premises"); and

      WHEREAS, Metropolitan and Assignor executed a document entitled "Fifth
Amendment to Industrial Lease Agreement" on January 19, 1995 (the "Fifth
Amendment") which amendment added 36,020 square feet of "Third Expansion Space"
to the Premises; and

      WHEREAS, Assignor and Lessor agreed in a document entitled "Seventh
Amendment to Industrial Lease Agreement" dated June 1, 2002 (the "Seventh
Amendment") that the Third Expansion Space was no longer subject to the terms of
the Lease and to add 20,000 square feet to the Premises, so that as of June 1,
2002 the Premises consists of 130,128 square feet; and

      WHEREAS, Metropolitan and Medeva Pharmaceuticals, Inc. ("Medeva"), as
successor to Adams Laboratories, Inc., and Adams Laboratories, Inc., an entity
then-new to the Lease and now being Assignor, executed a document entitled
"Partial Assignment and Sixth Amendment to
<PAGE>
Industrial Lease Agreement" dated February 25, 1998, by which document, among
other matters, 1) Assignor assumed the terms of the Lease as to the Premises as
contemplated by the Fourth Amendment, 2) Medeva remained tenant under the Lease
as to the 36,020 of "Third Expansion Space" as discussed in the Fifth Amendment,
and as to which space the Lease has terminated, and 3) the Lease Term was
extended so as to terminate on January 31, 2006 (Terms used and not otherwise
defined herein shall have the meaning ascribed to them in the Lease); and

      WHEREAS, pursuant to an Asset Purchase Agreement dated March 24, 2004,
Assignee is purchasing certain assets of the Assignor, including without
limitation, the Lease; and

      WHEREAS, Assignor desires to assign its interests in the Lease to Assignee
and Assignee desires to assume the obligations of Assignor with respect to the
Lease; and

      WHEREAS, the terms of the Lease require Lessor to consent to any
assignment of the Lease and Lessor desires to consent to such assignment.

      NOW, THEREFORE, in consideration of the premises, which are incorporated
herein by reference, and of the terms, conditions and covenants set forth herein
and other good and valuable consideration, the receipt and adequacy of which are
hereby acknowledged, the parties hereto, intending to be legally bound, hereby
agree as follows:

      1.    Assignment of Lease. As of the Effective Date, Assignor hereby
assigns, sells, transfers and delivers to Assignee all of the right, title and
interest of Assignor in the Lease to have and to hold the same, upon and subject
to the respective covenants, terms and conditions contained therein for the
remainder of the term thereof.

      2.    Assumption of Lease. Assignee hereby accepts the assignment of the
Lease and assumes and agrees to perform directly all of the respective duties
and obligations of Assignor thereunder that accrue from and after the Effective
Date and agrees to perform all of the respective covenants, terms and conditions
contained therein.

      3.    No Default; Other Representations. Lessor represents and warrants
that (a) neither it nor, to its knowledge, Assignor is in default under the
terms of the Lease and, to its knowledge, no fact exists that with the passage
of time or notice would constitute an event of default by either of them under
the Lease; and (b) the Premises and Building are in compliance in all material
respects with all federal or state laws, orders and regulations.

      4.    Consent of Lessor. Lessor hereby consents to the assignment and
assumption of the Lease by Assignee and Lessor and Assignee acknowledge that
this Assignment and Assumption Agreement constitutes an amendment to the Lease
substituting Assignee for Assignor for all purposes. Lessor agrees that from and
after the date hereof, both Assignor and John Q. Adams, Sr., in his capacity as
guarantor, shall be, and hereby are, released from any and all claims, losses,
damages, liabilities, and obligations arising under or in connection with the
Lease, Lessor agreeing to look solely to Assignee as the sole tenant under the
Lease from and after the date hereof.

                                       2
<PAGE>
      5.    Effect of Agreement. This agreement shall be binding on and inure to
the respective benefit of each of the parties hereto and its respective
successors and assigns.

      6.    Severability. The invalidity or unenforceability of any provision of
the agreement shall not affect the validity or enforceability of any other
provision.

      7.    Modification. No provision of this agreement, including the
provisions of this paragraph, may be modified, deleted or amended in any manner
except by an agreement in writing executed by all of the parties hereto.

      8.    Construction. This agreement is executed and delivered in the State
of Texas and shall be construed and enforced in accordance with the laws of such
state.

      9.    Original Copies. This agreement is executed in more than one
counterpart, each of which shall be deemed an original.

      10.   Headings. The underlined headings herein are for convenience only
and shall not affect the interpretation of this agreement.

      11.   Notices. Section 26 of the Lease shall be amended to reflect that
the address for notice for Assignee shall be:

                  Cardinal Health, PTS, LLC
                  14 School House Road
                  Somerset, NJ  08873
                  Telecopier:  732-537-6491
                  Attn: Legal Department

              (THE REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK)

                                       3
<PAGE>
      IN WITNESS WHEREOF, this Agreement has been executed and delivered by the
parties as of the date written above.

Witnesses:                                ADAMS LABORATORIES, INC.
                                          d/b/a ADAMS RESPIRATORY THERAPEUTICS

---------------------------------
Print Name:                               By:
            ----------------------            ----------------------------------
                                          Name:
                                          Title:
---------------------------------
Print Name:
            ---------------------

----------------------------------        CARDINAL HEALTH PTS, LLC
Print Name:
            ---------------------
                                          By:
                                          ----------------------------------
---------------------------------         Name:
Print Name:                               Title:
            ---------------------

---------------------------------         THE ESTATE OF JAMES CAMPBELL, DECEASED
Print Name:
            ---------------------
                                          By:
                                          ----------------------------------
---------------------------------         Name:
                                          Title:
Print Name:
            ---------------------

                                       4
<PAGE>
                                                                     Exhibit A-2

                                  BILL OF SALE

      KNOW ALL MEN BY THESE PRESENTS that, pursuant to the terms and conditions
of that certain Asset Purchase Agreement, dated as of March 24, 2004, by and
between Adams Laboratories, Inc., a Texas corporation d/b/a Adams Respiratory
Therapeutics ("Seller") and Cardinal Health PTS, LLC, a Delaware limited
liability company ("Purchaser") (the "Asset Purchase Agreement"), Seller, for
good and valuable consideration (the receipt and sufficiency of which is hereby
acknowledged), does hereby grant, sell, convey, assign, transfer and deliver
unto Purchaser to have, and to hold forever, the following (capitalized terms
used but not otherwise defined herein shall have the respective meanings given
to such terms in the Asset Purchase Agreement):

            All of its right, title and interest in and to Purchased Assets that
            can be transferred pursuant to an instrument of this kind including
            without limitation the Inventory, the Tangible Personal Property
            (including without limitation the items set forth on SCHEDULE
            1.1.1(b) of the Disclosure Schedule) and copies of the Books and
            Records, in each case free and clear of all mortgages, liens,
            pledges, security interests, charges, claims, restrictions and other
            encumbrances and defects of title of any nature whatsoever except
            for Permitted Liens.

      This Bill of Sale is being executed in connection with, and is subject to
all representations, warranties, covenants and agreements set forth in the Asset
Purchase Agreement and shall neither add to nor detract from the Asset Purchase
Agreement.

      Seller covenants and agrees, at all times and from time to time hereafter,
that it will make, do, execute and deliver such further instruments, acts,
consents, and assurances as Purchaser may reasonably request to more effectively
sell, convey, transfer to and vest in Purchaser all of the right, title and
interest in and to the Tangible Personal Property.

      This Bill of Sale shall be governed and controlled as to validity,
enforcement, interpretation, construction, effect and in all other respects by
the laws of Delaware. Except for the Asset Purchase Agreement and the other
closing documents executed by Seller and Purchaser pursuant to it, this Bill of
Sale records the entire understanding between the parties regarding the sale and
purchase of the Inventory and Tangible Personal Property, and supersedes any
previous or contemporaneous agreement, understanding, or representation, oral or
written, by either of them.

      Seller further covenants and agrees that the covenants herein contained
shall be binding upon its successors and assigns.
<PAGE>
      IN WITNESS WHEREOF, this Bill of Sale has been duly executed and delivered
by a duly authorized officer of Seller on this 1st day of April, 2004.

                                    SELLER:

                                    ADAMS LABORATORIES, INC.

                                    By:
                                       ---------------------------------

                                    Name:
                                         -------------------------------

                                    Title:
                                          ------------------------------
<PAGE>
                                                                     Exhibit A-3

                       ASSIGNMENT AND ASSUMPTION AGREEMENT

            THIS ASSIGNMENT AND ASSUMPTION AGREEMENT is entered into as of April
1, 2004, by and between Adams Laboratories, Inc., a Texas corporation d/b/a
Adams Respiratory Therapeutics, ("Assignor"), and Cardinal Health PTS, LLC, a
Delaware limited liability company ("Assignee").

                                    RECITALS

            WHEREAS, Assignor and Assignee are parties to that certain Asset
Purchase Agreement, dated as of March 24, 2004, by and between Assignor and
Assignee (the "Asset Purchase Agreement"), pursuant to which Assignor is selling
to Assignee the Transferred Business, including the Purchased Assets, all as
more particularly described in the Asset Purchase Agreement; and

            WHEREAS, pursuant to the terms and conditions of the Asset Purchase
Agreement, Assignor desires to assign and Assignee desires to assume the Assumed
Contracts, the Authorizations and the Assumed Liabilities.

            NOW, THEREFORE, for good and valuable consideration, the receipt and
legal sufficiency of which are hereby acknowledged, Assignor and Assignee agree
as follows:

1. Assignment of Assumed Contracts, Authorizations and Assumed Liabilities.
Assignor hereby assigns and transfers to Assignee all of its right, title and
interest in and to the Assumed Contracts, the Authorizations and the Assumed
Liabilities.

2. Acceptance of Assignment and Assumption of Assumed Liabilities. Assignee
hereby agrees to and accepts the assignment under Section 1 above and, except as
provided in Section 1.4.2 of the Asset Purchase Agreement, hereby assumes and
covenants to keep, perform and fulfill from and after the date hereof the
executory portion of the terms, covenants, conditions and obligations of each of
the Assumed Contracts, the Authorizations and the Assumed Liabilities required
to be kept, performed and fulfilled from and after the date hereof by Assignor
thereunder, subject to, in the case of any Assumed Contract or Authorization
which requires consent to assignment, the receipt of any required consent.

3. Effectiveness; Conflicts. Assignor and Assignee acknowledge and agree that
the effectiveness of this Assignment and Assumption Agreement is contingent
upon, and subject to, the Closing. If any provision of this Assignment and
Assumption Agreement conflicts with any provision of the Asset Purchase
Agreement, the provision of the Asset Purchase Agreement shall control.

4. Successors and Assigns. This Assignment and Assumption Agreement shall inure
to the benefit of, and be binding upon, the respective successors and assigns of
the parties hereto. No further assignment shall relieve Assignee of primary
liability hereunder except as specifically agreed to in writing by the parties
hereto.
<PAGE>
5. Amendment; Waiver. Neither this Assignment and Assumption Agreement, nor any
of the terms or provisions hereof, may be amended, modified, supplemented or
waived, except by a written instrument signed by the parties hereto (or, in the
case of a waiver, by the party granting such waiver). No waiver of any of the
provisions of this Assignment and Assumption Agreement shall be deemed or shall
constitute a waiver of any other provision hereof (whether or not similar), nor
shall such waiver constitute a continuing waiver. No failure of any party hereto
to insist upon strict compliance by any other party with any obligation,
covenant, agreement or condition contained in this Assignment and Assumption
Agreement shall operate as a waiver of, or estoppel with respect to, any
subsequent or other failure.

6. Further Assurances. Each of the parties hereto, at all times and from time to
time hereafter, and upon every reasonable written request to do so by another
party hereto, shall make, do, execute and deliver, or cause to be made, done,
executed and delivered, all such further acts, deeds, assurances and things as
may be reasonably required in order to further implement and carry out the
intent and purpose of this Assignment and Assumption Agreement.

7. Counterparts. This Assignment and Assumption Agreement may be executed in
multiple counterparts, each of which shall be deemed an original, but all of
which taken together shall constitute one and the same instrument.

8. Governing Law. This Assignment and Assumption Agreement shall be governed in
all respects, including validity, interpretation and effect, by the internal
laws of the State of Delaware without regard to the principles of conflict of
laws thereof.

9. Definitions. Capitalized terms used but not otherwise defined herein shall
have the respective meanings given to such terms in the Asset Purchase
Agreement.

            [THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK]
<PAGE>
                Executed as the day and year first above written.

ASSIGNOR:                                 ASSIGNEE:

ADAMS LABORATORIES, INC.                  CARDINAL HEALTH PTS, LLC

By:                                       By:
   ---------------------------               ---------------------------

Name:                                     Name:
     -------------------------                 -------------------------

Title:                                    Title:
      ------------------------                  ------------------------
<PAGE>
                                                                       Exhibit B

                   COMMERCIAL SERVICES AGREEMENT

         This Commercial Services Agreement ("AGREEMENT"), dated as of April 1,
2004, is between Cardinal Health PTS, LLC, a Delaware limited liability company
("CARDINAL") and Adams Laboratories, Inc., a Texas corporation d/b/a Adams
Respiratory Therapeutics ("ADAMS").

                             RECITALS

      WHEREAS, Cardinal and Adams are parties to that certain Asset Purchase
Agreement (the "PURCHASE AGREEMENT") dated March 24, 2004, pursuant to which
Adams agreed to sell and Cardinal agreed to purchase certain assets on the terms
and conditions set forth therein; and

      WHEREAS, in connection with the Purchase Agreement, Cardinal and Adams are
entering into a Supply Agreement (the "SUPPLY AGREEMENT"), pursuant to which
Cardinal is agreeing to manufacture and sell and Adams is agreeing to purchase
certain products on the terms and conditions set forth therein; and

      WHEREAS, as a material inducement for Cardinal to consummate the
transactions contemplated by the Purchase Agreement and to commit to perform the
services contemplated by the Supply Agreement, Adams has agreed that Cardinal
shall be Adams' preferred provider of marketing, sales, logistics, development,
analytical and other services and as a material inducement for Adams to
consummate the transactions contemplated by the Purchase Agreement and to commit
to purchase products as contemplated by the Supply Agreement, Cardinal has
agreed to provide favorable pricing to Adams for certain services, in each case
on the terms and conditions set forth in this Agreement.

                             AGREEMENT

            NOW, THEREFORE, in consideration of the premises and the promises
set forth in this Agreement, the parties agree as follows:

      1.    DEFINITIONS.

      (a) "ADAMS PRODUCT" means all products for which Adams now has or during
the term of this Agreement obtains the rights to market or sell including
without limitation products currently marketed under the Mucinex(R) brand, the
ALLERx(R) brand, the Aquatab(R) brand or any replacement or successor brand of
such brands and also includes any experimental (pre-commercial) product.

      (b) "AFFILIATE" as applied to Cardinal or Adams shall mean any legal
entity other than Cardinal or Adams, as the case may be, in whatever country
organized, controlling, controlled by or under common control with Cardinal or
Adams. An entity is deemed to be in control of another entity (controlled
entity) if the former owns directly or indirectly at least fifty percent (50%),
or the maximum percentage allowed by law in the country of the controlled
entity, of the outstanding voting equity securities of the controlled entity (or
other equity or ownership interest if such controlled entity is other than a
corporation) or otherwise has the power to direct or cause the direction of the
management of the controlled entity.

      (c) "COMMERCIAL OUTSOURCE ACTIVITY" means marketing, sales, logistics,
development, analytical and other services that support or are intended to
support the
<PAGE>
commercialization of Adams Products if such services (a) are services of the
type that Cardinal (together with its Affiliates) possesses (or can reasonably
be expected to possess within the applicable timeframe) the means to provide and
(b) are not Excluded Activities. Notwithstanding anything contained herein,
Commercial Outsource Activities do not include development or analytical
services provided by Cardinal with respect to Mucinex(R) or any Mucinex(R) line
extension pursuant to the Transition Services Agreement between Adams and
Cardinal dated as of the date of this Agreement. Without limiting the generality
of the foregoing, a "Commercial Outsource Activity" includes: (i) product
formulation; (ii) product development (including activities to develop an
enhanced, next-generation or line extension of an Adams Product); (iii)
manufacture of samples or products for clinical testing or commercial sale; (iv)
packaging of samples or products for clinical testing or commercial sale; (v)
supply or distribution of samples or products for clinical testing or commercial
sale; (vi) product sales and marketing services; (vii) funding or other
risk-sharing arrangement with respect to the conduct of clinical trials of an
Adams Product; and (viii) other goods or services related to the development,
manufacture or distribution of pharmaceutical or health care products of a type
regularly provided by Cardinal or its Affiliates.

      (d) "EXCLUDED ACTIVITY" means services relating to an Adams Product that
are performed by employees of Adams in the ordinary course of business or
product sales and marketing services set forth in Section 1(c)(vi) performed by
a Major Pharmaceutical Enterprise that acquires exclusive rights to market the
relevant Adams Product. For the avoidance of doubt, Excluded Activities, as that
term relates to a Major Pharmaceutical Enterprise or its Affiliates, do not
include any of those Commercial Outsource Activities set forth in Section 1(c)
other than Section 1(c)(vi).

      (e) "MAJOR PHARMACEUTICAL ENTERPRISE" means (i) a company which, together
with its Affiliates, had worldwide annual revenues from the sale of prescription
and/or over the counter pharmaceutical, health care or personal care products in
excess of $2 billion during its most recently completed fiscal year and (ii) any
Affiliates of such company.

      2. PREFERRED PROVIDER; GRANT OF RIGHT OF FIRST REFUSAL. During the term of
this Agreement, in connection with any proposed arrangement for Commercial
Outsource Activities required by Adams, Cardinal shall have a right of first
refusal, should Adams seek to source any Commercial Outsource Activities with a
provider (other than Cardinal or its Affiliates), unless Cardinal (together with
its Affiliates) does not then possess (or cannot reasonably be expected to
possess within the applicable timeframe) the means to provide such Commercial
Outsource Activities to Adams. In connection with any Commercial Outsource
Services, Adams shall submit to Cardinal a written request for a proposal
specifying Adams's requirements for the Commercial Outsource Services, including
reasonably prescribed specifications, standards for materials, quality,
delivery, pricing and/or service support (the "PERFORMANCE REQUIREMENTS").
Within thirty (30) days of the receipt of Adams' Performance Requirements,
Cardinal shall submit a proposal to Adams for the provision of the relevant
Commercial Outsource Services or such portion of such services as Cardinal
possesses (or can reasonably be expected to possess within the applicable
timeframe) the means to provide, proposed pricing and evidence of its ability to
satisfy the Performance Requirements (the "PROPOSAL"). The parties shall then
negotiate in good faith to reach agreement on applicable pricing and/or any
changes to the Performance Requirements and on a definitive agreement for the
Commercial Outsource Services. If the parties do not reach an agreement for the
provision of the Commercial Outsource Services within thirty (30) days of Adams'
receipt of the Proposal (each a "Rejected Commercial Outsource Service), then
Adams shall be free to source such Rejected Commercial Outsource Services with
an alternate provider (other than Adams or its

                                       2
<PAGE>
Affiliates) so long as the material terms and/or conditions of the arrangement
with the alternate provider are more favorable to Adams than the corresponding
material terms and/or conditions offered by Cardinal in the Proposal or the
subsequent negotiations between Cardinal and Adams.

      3.          REPRESENTATIONS AND WARRANTIES:

      (a) DUE AUTHORIZATION. Adams represents and warrants that this Agreement
has been duly authorized by all necessary corporate action on the part of Adams,
has been duly executed by a duly authorized officer of Adams and constitutes a
valid and binding obligation of Adams. Cardinal represents and warrants that
this Agreement has been duly authorized by all necessary corporate action on the
part of Cardinal, has been duly executed by a duly authorized officer of
Cardinal and constitutes a valid and binding obligation of Cardinal.

      (b) NO CONFLICTS. Adams hereby represents and warrants that neither the
execution and delivery of this Agreement nor the consummation of the
transactions contemplated by it will violate or result in any violation of or be
in conflict with or constitute a default under any term of the organizational
documents of Adams or any agreement, instrument, judgment, decree, law, rule or
order applicable to Adams. Cardinal hereby represents and warrants that neither
the execution and delivery of this Agreement nor the consummation of the
transactions contemplated by it will violate or result in any violation of or be
in conflict with or constitute a default under any term of the organizational
documents of Cardinal or any agreement, instrument, judgment, decree, law, rule
or order applicable to Cardinal.

      4.         MISCELLANEOUS.

      (a) TERMINATION. This Agreement will terminate upon the earlier of (i) the
termination of the Supply Agreement or (ii) the mutual agreement of the Cardinal
and Adams.

      (b) PARTIAL INVALIDITY. In the event one or more terms of this Agreement
are found to violate the provisions of any applicable statute, law or
regulation, the parties hereto shall negotiate in good faith to modify this
Agreement, but only to the extent necessary to make this Agreement valid and
enforceable, having full regard for applicable laws and the intent and purposes
of the parties entering into this Agreement.

      (c) INDEPENDENT CONTRACTOR. The parties hereto are independent contractors
under this Agreement and neither of the parties hereto shall have any right or
authority to assume or create any obligations on behalf of, or in the name of
any other party hereto or to bind the other party hereto to any contract,
agreement or undertaking with any third party without the written consent of the
other party hereto.

      (d) ENTIRE AGREEMENT. This Agreement constitutes the entire agreement
between the parties relating to the subject matter of this Agreement, and this
Agreement may not be amended or modified, unless such amendment or modification
is in writing and signed by a duly authorized representative of each party.

      (e) ASSIGNABILITY. Neither party shall assign this Agreement other than to
Affiliates; however, in the event of any assignment, performance shall be
guaranteed by the assignor in form satisfactory to the other party.

      (f) SUCCESSORS AND PERMITTED ASSIGNS. This Agreement shall be binding upon
and inure to the benefit of the permitted successors or permitted assigns of
Cardinal and

                                       3
<PAGE>
Adams respectively.

      (g) NOTICES. Any and all notices provided for shall be sent to the
respective parties at the following addresses by certified or registered mail or
sent by a nationally-recognized overnight courier service:

      If to Cardinal:   Cardinal Health PTS, LLC
                        14 Schoolhouse Road
                        Somerset, New Jersey 08873
                        Attention: President, Modified Release Technologies
                        Facsimile No.: 732.537.6491

      With a copy to:   Cardinal Health PTS, LLC
                        7000 Cardinal Place
                        Dublin, Ohio 43017
                        Attention:  Vice President and Associate General
                        Counsel, Pharmaceutical Technologies & Services
                        Facsimile No.: 614.757.5051

      If to Adams:      Adams Laboratories, Inc.
                        d/b/a Adams Respiratory Therapeutics
                        Colonial Court
                        409 Main Street
                        Chester, New Jersey  07930
                        Attention: Walter E. Riehemann, Esq., General
                        Counsel, Vice-President and Secretary
                        Facsimile No.: 908.879.9784

      With a copy to:   Kelley Drye & Warren LLP
                        200 Kimball Drive
                        Parsippany, New Jersey 07054
                        Attention:  Christopher G. FitzPatrick, Esq.
                        Facsimile No.: 973.503.5950

or to such other addresses as may be subsequently furnished by one party to the
other in writing. Any such notice shall be deemed effective from the date of
mailing.

      (h) GOVERNING LAW. This Agreement shall be governed by and interpreted in
accordance with the laws of the State of Delaware without regard to its conflict
of laws provisions.

      (i) COUNTERPARTS. This Agreement may be executed in multiple counterparts,
which may be delivered by facsimile, each of which shall have the force and
effect of an original.

      (j) DESCRIPTIVE HEADINGS. The headings contained in this Agreement are for
reference purposes only and shall not affect in any way the meaning or
interpretation of this Agreement.

                                       4
<PAGE>
      NOW THEREFORE, on the date first above written, the parties have duly
executed this COMMERCIAL SERVICES AGREEMENT.

                                    CARDINAL HEALTH PTS, LLC

                                    By:
                                           -------------------------------------
                                    Name:
                                           -------------------------------------
                                    Title:
                                           -------------------------------------

                                    ADAMS LABORATORIES, INC.

                                    By:
                                           -------------------------------------
                                    Name:
                                           -------------------------------------
                                    Title:
                                           -------------------------------------

                                       5
<PAGE>
                                                                       Exhibit C

                                SUPPLY AGREEMENT

      THIS SUPPLY AGREEMENT (this "AGREEMENT") made as of the 1st day of April,
2004 (the "EFFECTIVE DATE"), by and between Cardinal Health PTS, LLC, a Delaware
limited liability company ("CARDINAL"), and Adams Laboratories, Inc., a Texas
corporation, d/b/a Adams Respiratory Therapeutics ("ADAMS").

                                    RECITALS

      1. Concurrent with executing this Agreement, Cardinal and Adams are
completing the closing of that certain Asset Purchase Agreement between Cardinal
and Adams dated March 24, 2004 ("ASSET PURCHASE AGREEMENT") providing for the
purchase by Cardinal from Adams of certain assets related to manufacturing
activities.

      2. In connection with the Asset Purchase Agreement, Adams has agreed to
enter into this Agreement pursuant to which Cardinal will be the exclusive
supplier of certain drug products for Adams.

      NOW, THEREFORE, in consideration of the premises, which are incorporated
herein by reference, and other good and valuable consideration, the receipt and
adequacy of which is hereby acknowledged, it is agreed between the parties as
follows:

                             ARTICLE I - DEFINITIONS

      1.1 "ACT" shall mean the Federal Food, Drug, and Cosmetic Act located at
21 U.S.C. Sections 301 to 397 (2000), as it may be amended from time to
time, and regulations promulgated thereunder.

      1.2 "AFFILIATE" as applied to Cardinal or Adams shall mean any legal
entity other than Cardinal or Adams, as the case may be, in whatever country
organized, controlling, controlled by or under common control with Cardinal or
Adams. An entity is deemed to be in control of another entity (controlled
entity) if the former owns directly or indirectly at least fifty percent (50%),
or the maximum percentage allowed by law in the country of the controlled
entity, of the outstanding voting equity of the controlled entity (or other
equity or ownership interest if such controlled entity is other than a
corporation) or otherwise has the power to direct or cause the direction of the
management of the controlled entity.

      1.3 "ALTERNATE FACILITY" shall mean a processing site of Cardinal or one
of its Affiliates other than the Facility, as designated by Cardinal and
approved by Adams, such approval not to be unreasonably withheld or delayed.

      1.4 "BATCH" shall mean the regular manufacturing increment of Drug Product
pursuant to the Specifications.
<PAGE>
      1.5 "CGMPS" shall mean all applicable current Good Manufacturing Practices
promulgated by the FDA pursuant to the Act.

      1.6 "CONTRACT YEAR" shall mean a twelve (12) consecutive month period
commencing on April 1, 2004, and each succeeding April 1 during the term of this
Agreement.

      1.7 "DRUG PRODUCTS" shall mean any Mucinex(R), Mucinex(R) D, Mucinex(R) DM
products, AlleRx(R) products, Aquatab(R) products and any and all other
prescription or over-the-counter pharmaceutical or health-related products for
which Adams has, as of the date hereof, the right to market or sell; provided,
however, that "Drug Products" shall exclude any and all liquid products for
which, as of the Effective Date, Adams has the right to market or sell.

      1.8 "FACILITY" shall mean Cardinal's manufacturing site located in Fort
Worth, Texas, or such other Cardinal facility designated by Cardinal and
approved in writing by Adams, such approval not to be unreasonably withheld or
delayed.

      1.9 "FDA" shall mean the United States Food and Drug Administration, or
any successor entity thereto.

      1.10 "NEW DRUG PRODUCTS" shall mean any prescription or over-the-counter
pharmaceutical or health-related products or product kits for which Adams
acquires the right to market or sell during the term of this Agreement.

      1.11 "SPECIFICATIONS" shall mean the written specifications for the
manufacturing and packaging of the Drug Products attached hereto as Exhibit A
and made a part hereof, as such document may be revised by Adams and agreed to
by Cardinal from time to time during the term of this Agreement.

      1.12 "STARTING MATERIALS" shall mean (a) those consigned finished goods
components for inclusion in drug product kits, and (b) such other materials as
the parties hereto shall agree on in writing from time to time, which Adams
shall deliver to Cardinal.

      1.13 "THIRD PARTY" means any person, firm or corporate body other than
Adams, Cardinal, an Adams Affiliate or a Cardinal Affiliate.

                      ARTICLE II - OWNERSHIP OF PROPRIETARY
                         INFORMATION AND CONFIDENTIALITY

      2.1 Grant of License. Subject to the terms and conditions hereinafter set
forth and except as otherwise provided herein, Adams hereby grants Cardinal a
non-exclusive, worldwide, non-transferable, royalty-free license to use Adams'
intellectual property rights with respect to each of the Drug Products,
including without limitation Adams' patents, copyrights, trademarks, trade
secrets and know-how solely in connection with the performance by Cardinal of
the manufacturing services hereunder. Cardinal acknowledges that all right,
title and interest in the Drug Products and all Adams Confidential Information
(as hereinafter defined) shall remain

                                       2
<PAGE>
vested solely in Adams. All rights not expressly granted to Cardinal herein are
hereby reserved by Adams and such reserved rights may be exercised by Adams
concurrently with the rights licensed by Cardinal hereunder.

      2.2 Retention of Intellectual Property Rights. Adams acknowledges and
agrees that Cardinal owns certain intellectual property rights related to
Cardinal's manufacturing processes and that Cardinal is not transferring any
such rights to Adams.

      2.3   Confidentiality.

            (a) Whether or not disclosed prior to or after the date hereof,
Adams shall not disclose to any person (other than Cardinal or any Cardinal
Affiliate) in any manner, directly or indirectly, any confidential or
proprietary information or data of Cardinal or any Cardinal Affiliate whether of
a technical or commercial nature ("CONFIDENTIAL INFORMATION"), or use or assist
any person (other than any Cardinal Affiliates) to use, in any manner, directly
or indirectly, any Confidential Information, excepting only use of such data or
information as is at the time generally known to the public and which did not
become generally known through the breach of any provisions of this Agreement.
As used in this Agreement, Confidential Information includes but is not limited
to any and all (i) computer software proprietary to any Cardinal Affiliate,
together with all documentation for any such software, (ii) confidential,
proprietary or trade secret information submitted to any Cardinal Affiliate in
confidence by its suppliers, employees, consultants, customers or others, and
(iii) information of any Cardinal Affiliate concerning operations, customers or
prospects, terms and conditions of sale and prices, technical knowledge relating
to customer requirements, and knowledge of markets for its products and
services. Adams acknowledges that all information, whether falling within the
above definition or otherwise (unless specifically excepted above), shall be
presumed to be Confidential Information if any Cardinal Affiliate takes measures
designed to prevent it, in the ordinary course of business, from being available
to persons other than those selected by Cardinal Affiliates to have access
thereto for limited purposes. All information disclosed to Adams or its
Affiliates or to which Adams or its Affiliates obtains access, which such person
has reasonable basis to believe to be Confidential Information, or which such
person has reasonable basis to believe that any Cardinal Affiliate treats as
being Confidential Information, shall be presumed to be Confidential
Information. Notwithstanding the foregoing, this Section 2.3(a) shall not
restrict Adams from using or disclosing information related to Cardinal or any
Cardinal Affiliate properly obtained in the course of other business
relationships for any proper purpose otherwise permitted.

            (b) Whether or not disclosed prior to or after the date hereof, the
Cardinal Affiliates shall not disclose to any person in any manner, directly or
indirectly, any confidential or proprietary information or data of Adams whether
of a technical or commercial nature ("ADAMS CONFIDENTIAL INFORMATION"), or use
or assist any person (other than Adams or any of Adams's Affiliates) to use, in
any manner, directly or indirectly, any Adams Confidential Information,
excepting only use of such data or information as is at the time generally known
to the public and which did not become generally known through the breach of any
provisions of this Agreement. As used in this Agreement, Adams Confidential
Information includes but is not limited to any and all (i) computer software
proprietary to Adams, together with all documentation for any such software,
(ii) confidential, proprietary or trade secret information

                                       3
<PAGE>
submitted to Adams in confidence by its suppliers, employees, consultants,
customers or others, and (iii) information of Adams or any of its Affiliates
concerning operations, customers or prospects, terms and conditions of sale and
prices, technical knowledge relating to customer requirements, and knowledge of
markets for its products and services. Cardinal acknowledges that all
information, whether falling within the above definition or otherwise, shall be
presumed to be Adams Confidential Information if Adams or any of its Affiliates
takes measures designed to prevent it, in the ordinary course of business, from
being available to persons other than those selected by Adams or its Affiliates
to have access thereto for limited purposes. All information disclosed to
Cardinal Affiliates or to which Cardinal Affiliates obtain access, which such
person has reasonable basis to believe to be Adams Confidential Information, or
which such person has reasonable basis to believe Adams or its Affiliates treats
as being Adams Confidential Information, shall be presumed to be Adams
Confidential Information.

            (c) Cardinal shall have no right to use Seller Proprietary Rights
(as such term is defined in the Asset Purchase Agreement) except as reasonably
necessary to perform its obligations hereunder, under an agreement relating to
New Drug Products or as otherwise authorized by Adams. Adams acknowledges that
Transferred Know-How (as such term is defined in the Asset Purchase Agreement)
does not constitute Adams Confidential Information and nothing in this Agreement
shall limit Cardinal's rights relating to Transferred Know-How.

                      ARTICLE III - SUPPLY OF DRUG PRODUCTS
                              AND NEW DRUG PRODUCTS

      3.1 Supply of Drug Products. Adams will purchase exclusively from
Cardinal, and Cardinal will be the exclusive, worldwide supplier to Adams for,
all of Adams' and its Affiliates' requirements of Drug Products for the term of
this Agreement. Sales of Drug Products by Affiliates of Adams or Adams'
development or marketing collaborators shall be deemed to be made by Adams for
this purpose, and Cardinal may assign to those of its Affiliates approved in
writing by Adams, as appropriate, responsibilities for compliance or partial
compliance with Cardinal's responsibilities hereunder, such approval not to be
unreasonably withheld or delayed.

      3.2 Supply of New Drug Products; *. Concurrent with the Closing under the
Asset Purchase Agreement, the parties are entering into a Commercial Services
Agreement (the "COMMERCIAL SERVICES AGREEMENT"). During the term of this
Agreement, in connection with the supply of any New Drug Product required by
Adams, Cardinal shall be the exclusive supplier to Adams of any such New Drug
Product unless Cardinal (together with its Affiliates) does not then possess (or
cannot reasonably be expected to possess within the applicable timeframe) the
means to supply such New Drug Product to Adams. * In connection

                                       4

----------------
*  Omitted information is the subject of a request for confidential treatment
   pursuant to Rule 406 under the Securities Act of 1933 and has been filed
   separately with the Securities and Exchange Commission.
<PAGE>
with any New Drug Product, Adams shall submit to Cardinal a written request for
a proposal specifying Adams's requirements for the New Drug Product, including
reasonably prescribed specifications, standards for materials, quality,
delivery, pricing and service support which shall be substantially identical to
the corresponding terms of this Agreement except to the extent that the supply
of such New Drug Product mandates otherwise (the "PERFORMANCE REQUIREMENTS").
Within sixty (60) days of the receipt of Adams' Performance Requirements,
Cardinal shall submit a proposal to Adams for the manufacture and supply of, and
provision of services in respect to, the New Drug Product including a production
plan (which shall include a milestone schedule for production of any required
testing and for commercial supply), proposed pricing and evidence of its ability
to satisfy the Performance Requirements (the "SUPPLY PROPOSAL"). The parties
shall then negotiate in good faith to reach agreement on applicable pricing
and/or any changes to the Performance Requirements and on a supply agreement for
the New Drug Product. Any such supply agreement shall include terms and
conditions that are substantially identical to the corresponding terms and
conditions set forth in this Agreement except (i) as provided above with respect
to Performance Requirements, (ii) for provisions herein that directly relate to
pricing based on profit sharing, (iii) Section 13.2(b) shall not apply, (iv)
compensation and appropriate representations shall be provided in the event that
Cardinal licenses or otherwise makes available to Adams proprietary rights of
Cardinal (e.g., proprietary drug delivery systems), and (v) as otherwise agreed
by the parties. If the parties do not reach an agreement for the supply of the
New Drug Product within sixty (60) days of Adams' receipt of the Supply
Proposal, then any unresolved matters shall be deemed to be a Dispute subject to
resolution in accordance with Section 14.4. In the case of a New Drug Product or
a finished goods component of a New Drug Product (i.e., a kit) which Cardinal is
unable to manufacture, Adams will be free to source such New Drug Product or
component, as the case may be, as a Starting Material from a Third Party. In
case of a finished goods component of a New Drug Product sourced from a Third
Party, Adams will procure and provide such Starting Material on consignment for
inclusion by Cardinal in the kit.

      3.3 Failure to Supply. In order to ensure continuity of supply, in the
event of a failure by Cardinal to supply Drug Products to Adams for a period of
thirty (30) days, Adams and its Affiliates shall be entitled to make or have
made a replacement supply of any affected Drug Product from a Third Party,
without incurring any liability under this Agreement. In such event, Cardinal
shall cooperate with Adams and such Third Party to effectuate the royalty-free
and limited transfer of manufacturing know-how from Cardinal to Adams or such
Third Party, as appropriate, to enable Adams or the Third Party to manufacture
and package the affected Drug Product. Cardinal agrees to use commercially
reasonable efforts to enable Adams or such Third Party to qualify and validate
the Third Party's facilities and to enable the Third Party to manufacture and
package the affected Drug Product(s). Notwithstanding the foregoing, the parties
hereto acknowledge and agree that no such recourse to a Third Party shall take
place so long as Cardinal or a Cardinal Affiliate shall have (x) a validated
Alternate Facility at which the affected Drug Product(s) is(are) able to be
readily manufactured and packaged in accordance with the Specifications, or (y)
safety stock inventory of the affected Drug Product(s), in the case of each of
(x) and (y), sufficient to meet any Purchase Order of Adams for the Drug
Products pursuant to Section 4.2 hereof. If Adams is forced to resort to a Third
Party supplier, Cardinal shall provide Adams with sixty (60) days' prior written
notice of the date it will be able to re-commence manufacturing Drug Product.
Such Third Party shall be entitled to continue to

                                       5
<PAGE>
manufacture and supply normal quantities of the affected Drug Product(s) to
Adams until the expiration of such sixty (60) days' notice, upon which date
manufacturing and supply operations in respect of the affected Drug Product(s)
shall be transferred back to Cardinal and the royalty-free and limited transfer
of manufacturing know-how from Cardinal to Adams or such Third Party shall be
terminated. In the event that Adams obtains any Drug Product from a Third Party
upon occurrence of any manufacturing and/or supply interruption pursuant to this
Section 3.3, then Cardinal shall reimburse Adams for the reasonable cost of such
Drug Product, including without limitation, the cost of validating the
manufacture and packaging of the Drug Products by or in connection with a Third
Party. Notwithstanding the foregoing, if Cardinal's inability to supply any Drug
Product is attributable to a breach by Adams under the Asset Purchase Agreement
or is attributable to the fault of Adams (including without limitation the
provision by Adams of forecasts that do not provide Cardinal with a reasonable
opportunity to expand and validate production capacity), then Adams shall bear
all costs and related expenses incurred by Adams in connection with obtaining
such Drug Product from a Third Party. In the event that Cardinal's inability to
supply any Drug Product is attributable in part to the fault of Adams and in
part to reasons other than the fault of Adams, then Cardinal shall be
responsible for that portion of the costs and related expenses incurred by Adams
that is reasonably allocable to the reasons other than the fault of Adams and
Adams shall be responsible for the remaining costs and related expenses. For
clarification, costs borne by Cardinal under this Section shall not constitute
Cost of Goods for purposes of determining the sharing of Gross Profits and costs
borne by Adams under this Section shall constitute Cost of Goods Sold for
purposes of determining the sharing of Gross Profits. For example, if Cardinal
bears the costs of a third party supplying Drug Products pursuant to this
Section 3.3, then the Cost of Goods for such Drug Products shall be deemed to be
zero and, accordingly, the Gross Profits for such Drug Products shall be equal
to the Net Sales of such Drug Products.

      3.4 Designated Facility. Cardinal shall manufacture the Drug Products for
the worldwide market in the Facility or an Alternate Facility. Notwithstanding
the foregoing, the parties hereto agree that the requirement to validate an
Alternate Facility and the allocation of costs and expenses related thereto
shall be borne as follows:

      (a) Cardinal shall validate an Alternate Facility for fluid bed drying
(with capacity reasonably comparable to the capacity for fluid bed drying at the
Facility) in accordance with the Specifications as soon as practicable after the
effective date of this Agreement. The cost of validating the Alternate Facility
for fluid bed drying shall be borne equally by the parties hereto.

      (b) Cardinal shall validate an Alternate Facility at which the Drug
Products are able to be readily manufactured and packaged in accordance with the
Specifications (other than the fluid bed drying pursuant to Section 3.4(a)
above):

            (i) if Cardinal, on its own accord and for reasons unrelated to
      business decisions made by Adams, chooses to validate such Alternate
      Facility, in which case Cardinal agrees to and shall bear the cost of such
      validation,

            (ii) if the forecasts under Section 4.1 hereof demonstrate
      additional capacity at the Facility (located in Fort Worth) is required
      for Cardinal to fulfill its obligations

                                       6
<PAGE>
      to Adams under this Agreement, or if Adams requires increased production
      capacity or desires such Alternate Facility for business reasons
      determined by Adams in its sole discretion, such that the Facility would
      not be able to accommodate Adams's requirements or Cardinal's obligations
      to Adams for the Drug Products or for such other business reasons of
      Adams, in which case Adams agrees to and shall bear the cost of such
      validation; or

            (iii) if the parties, for reasons other than as provided in clauses
      (i) and (ii) of this Section 3.4, mutually agree to arrange for Cardinal
      or a Cardinal Affiliate to validate such Alternate Facility, in which case
      the parties agree, in good faith, to negotiate the fair allocation of all
      costs associated with such validation, and

      (c) at Adams's sole cost and expense, Adams shall have the right, in its
sole discretion, to validate a facility of its own at which the Drug Products
are able to be readily manufactured and packaged in accordance with the
Specifications.

      3.5 Regulatory Approval. Adams will be solely responsible for and will
obtain all governmental approvals, permits and licenses necessary or desirable
in connection with the testing, marketing, sale, advertising or distribution of
the Drug Products in the United States and any other country.

                        ARTICLE IV - FORECASTS AND ORDERS

      4.1 Forecasts. In order to assist Cardinal in planning production, Adams
shall provide Cardinal with a twelve (12) month rolling forecast of the
quantities of Drug Products required by Adams, by month, for the following
twelve (12) months. It is understood that such forecasts, after the third (3rd)
month, are intended to be good faith estimates only, and shall not be binding
upon Adams. Notwithstanding the foregoing, Adams shall be bound to purchase from
Cardinal one hundred percent (100%) of those quantities of Drug Products set
forth in each such forecast as being Adams' requirements of Drug Products for
the first three (3) months of each twelve (12) month period. Further, the third
(3rd) month of any forecast may not vary by more than twenty percent (20%) of
the quantity reflected in the prior forecast for the same time period. Cardinal
shall be obligated to deliver, pursuant to Purchase Orders provided under
Section 4.2 of this Agreement, during the first two (2) months of a forecast up
to one hundred percent (100%) of Adams' estimated purchases for each of those
calendar months in the immediately preceding forecast and unless Cardinal so
informs Adams that it would have problems in meeting Adams' forecasted
requirements, during the third month in any forecast, pursuant to Purchase
Orders provided under Section 4.2 of this Agreement, up to one hundred twenty
percent (120%) of Adams' estimated purchases for that calendar month as set
forth in the immediately preceding forecast. Cardinal shall further use
commercially reasonable efforts to comply with Purchase Orders for Products in
excess of such one hundred twenty percent (120%) amount; provided, however, that
such inability to supply amounts in excess of one hundred twenty percent (120%)
shall not constitute a breach of this Agreement by Cardinal. Cardinal shall, no
later than ten (10) business days after receipt of each such forecast, notify
Adams in writing of any prospective problems of which it is aware that might
prevent it from meeting Adams' forecasted order quantities or estimated delivery
dates.

                                       7
<PAGE>
      4.2 Binding Purchase Orders. At least ninety (90) days prior to the date
on which Adams desires to have Drug Product delivered, and together with each
forecast referenced in Section 4.1, an authorized representative of Adams shall
furnish to Cardinal a binding purchase order (each, a "PURCHASE ORDER") for the
quantity (specified in terms of a whole number of Batches not less than an
amount agreed upon in writing in good faith for each Drug Product) of Drug
Products which Adams shall purchase and Cardinal shall deliver. Cardinal shall,
within five (5) business days after its receipt of such Purchase Order,
acknowledge such receipt and confirm that the Purchase Order can be supplied.
Should Cardinal fail to do so, then the Purchase Order shall be deemed to have
been accepted by Cardinal. Each such Purchase Order shall designate the quantity
of Drug Products ordered and the date by which Cardinal must deliver the Drug
Products to Adams.

      4.3 Excess Quantities; Changes in Purchase Requirements. Cardinal shall
use commercially reasonable efforts to accommodate any Adams request for any
Drug Product in excess of the quantities described in any previously-submitted
Purchase Order, or for delivery of any Drug Product sooner than as otherwise
provided in such Purchase Order; provided that, except to the extent included in
the Cost of Goods, for quantities in excess of one hundred twenty percent (120%)
Adams shall bear any and all additional costs or expenses (including but not
limited to additional costs or expenses associated with transportation or
insurance related to shipping the Drug Products above such cost and expense
allocations set forth in Section 7.1 hereof) as a result of Cardinal's
compliance with such request. Should Adams' business conditions necessitate
reduction or delay in Purchase Order requirements, then Cardinal shall use
commercially reasonable efforts to implement such requested changes; provided
that Adams shall bear any and all additional costs or expenses (including but
not limited to carrying costs or expenses associated with Raw Materials (as
defined in Section 6.2 hereof) or finished goods inventory and additional costs
or expenses associated with transportation or insurance related to shipping the
Drug Products above such cost and expense allocations set forth in Section 7.1)
as a result of Cardinal's compliance with such request. Notwithstanding the
foregoing, Cardinal shall not take any action in response to any such requests
which would result in charges to Adams in addition to those set forth in the
respective Purchase Order without Adams' prior written consent. In the event
that Adams' actual requirements during the first three months of a forecast for
any Drug Product exceed the amounts specified in the Purchase Order(s) provided
for such Drug Product for such time period pursuant to Section 4.2 and Cardinal
and its Affiliates are unable to supply Adams with such actual requirements for
such Drug Products, then Adams may obtain the amount of Drug Product that
exceeds the amount that Cardinal and its Affiliates are able to supply from a
Third Party. In such event, Cardinal shall cooperate regarding the royalty-free
and limited transfer of manufacturing know-how as provided for in Section 3.3;
provided, however, that (i) for quantities in excess of the amounts specified in
the applicable Purchase Order(s) Cardinal shall not be responsible for any costs
or expenses associated with arranging for or procuring Drug Product from the
Third Party and (ii) Cardinal shall be entitled to receive its share of Gross
Profits related to such Drug Products in the manner provided for in Exhibit C.

                            ARTICLE V - MANUFACTURING

      5.1 Specifications; Technical Assistance. Adams has delivered to Cardinal
complete

                                       8
<PAGE>
and accurate Specifications as identified in Exhibit A hereto for each Drug
Product. On and from the Effective Date and for a period of eighteen (18) months
therefrom (the "TECHNICAL ASSISTANCE PERIOD"), Adams shall provide Cardinal with
reasonable levels of technical assistance in respect of technical production
issues relating to the manufacture, quality control, and supply of the Drug
Products in accordance with the Specifications and the Production Procedures (as
defined in Section 5.2 hereof), all at no cost to Cardinal. Adams' obligations
under this Section 5.1 shall be limited to the assistance of certain specified
employees of Adams which shall be located within the Facility during the
Technical Assistance Period. Any costs and expense incurred by Adams's employees
for such training, including, without limitation, all travel and other expenses,
shall be borne by Cardinal. Should training be required at a location other than
at the Facility, the cost of such technical assistance from such Adams's
employees, including, for all reasonable travel, living and other expenses,
shall be borne by Cardinal. Any technical assistance provided by Adams to
Cardinal hereunder shall not impede the conduct of business by Adams. Following
the expiration or earlier termination of the Technical Assistance Period, all
technical assistance to Cardinal by Adams shall be charged at hourly rates
consistent with industry standards. Nothing in this Section 5.1 shall eliminate
or modify Cardinal's obligations to manufacture, package and supply the Drug
Products in accordance with this Agreement.

      5.2 Quality Agreement. Cardinal shall manufacture all Drug Products in
accordance with the Specifications and the Quality Agreement (defined below). If
Cardinal or Adams should wish to change any of the Specifications, such party
shall provide such proposed changes to the other at least ninety (90) days prior
to implementation. All such changes must be approved in writing by both parties
prior to being implemented and shall, if required, be subject to FDA approval.
In the event that regulatory action or applicable law require changes in the
Specifications then, subject to Adams' prior written agreement, Cardinal shall
use commercially reasonable efforts to implement such changes as soon as
reasonably practicable. Notwithstanding the foregoing, concomitantly with the
Closing under the Asset Purchase Agreement, the parties hereto agree to and
shall enter into a quality agreement in respect of the manufacture of the Drug
Products (the "QUALITY AGREEMENT"); it being understood that any inconsistencies
between this Section 5.2 and the Quality Agreement shall be governed by and
determined in accordance with this Agreement.

      5.3 Compliance with Environmental Laws. Cardinal represents and warrants,
and shall take all actions reasonably necessary to ensure, that the Facility,
any Alternate Facility, the equipment and practices used to perform its
responsibilities under this Agreement by or on behalf of Cardinal, or any of
Cardinal's contractors of any rank (including, without limitation, environmental
or safety and health consultants or waste management or disposal firms) will be
during the term of this Agreement, in full compliance with all health, safety
and environmental laws, statutes, ordinances, regulations, rules, permits and
pronouncements. Cardinal assumes responsibility for disposing of any and all
waste generated during the performance of its responsibilities under this
Agreement (including, without limitation, during any manufacturing, storage and
transportation activities) in accordance with all legal and professional
standards. Notwithstanding anything to the contrary herein, (a) should Cardinal
and/or any Cardinal contractor fail to comply with the obligations set forth in
this Section 5.3, then Cardinal shall be solely responsible for any claims,
suits, or liabilities resulting therefrom (including, without limitation, those
based on strict liability and joint and several liability), and Cardinal shall

                                       9
<PAGE>
indemnify, defend and save Adams (including all officers, directors, employees,
Affiliates and agents of Adams) harmless from and against any and all such
claims, suits, and liabilities; and (b) Cardinal shall indemnify, defend and
save Adams (including all officers, directors, employees, Affiliates and agents
of Adams) harmless from and against any and all claims, suits, and liabilities
which arise directly or indirectly from the storage, release, transportation or
disposal of chemicals, raw materials, product, waste or any other substance by
Cardinal and/or any Cardinal contractor. Notwithstanding the foregoing, Adams
shall (x) be solely responsible for any claims, suits, or liabilities resulting
from any violation of any health, safety and environmental laws, statutes,
ordinances, regulations, rules, permits and pronouncements in respect of its
disposal of any and all waste generated by it (including, without limitation,
any claim, suit or liability based on strict liability and joint and several
liability) which occurred prior to the Closing (as defined in the Asset Purchase
Agreement), and (y) indemnify, defend and save Cardinal (including all officers,
directors, employees, Affiliates and agents of Cardinal) harmless from and
against any and all such claims, suits, and liabilities and against any and all
claims, suits, and liabilities which arise directly or indirectly from the
storage, release, transportation or disposal of chemicals, raw materials,
product, waste or any other substance by Adams and/or any Adams contractor which
occurred prior to the Closing (as defined in the Asset Purchase Agreement).

                   ARTICLE VI - MATERIALS; PRICING ADJUSTMENTS

      6.1 Starting Materials. Adams shall deliver the Starting Materials to
Cardinal free of charge to the Facility. Any customs duties and the like arising
from importation of any Starting Material to the Facility shall be borne by
Adams. The risk of loss or damage of such Starting Materials shall remain with
Adams until the Starting Materials are received at the Facility, at which time
risk of loss or damage to the Starting Materials shall shift to Cardinal.
Cardinal shall be responsible for any loss or damage to the Starting Materials
while in Cardinal's custody other than as set forth herein. Adams shall be
compensated for losses of any Starting Materials beyond agreed upon yield
tolerances, in an amount equal to Adams's actual net cost to acquire such
Starting Materials.

      6.2 Raw Materials. Cardinal shall purchase all raw and packaging
materials, other than the Starting Materials, necessary to process the Drug
Products (the "RAW MATERIALS"), and shall use only those Raw Materials suppliers
that are pre-approved by Adams (specifically including any such suppliers
identified in the disclosure schedules to the Asset Purchase Agreement). Any new
supplier of Raw Materials proposed by Cardinal must be pre-approved in writing
by Adams prior to utilizing any such materials sourced from a new supplier in
the processing of Drug Products, such pre-approval not to be unreasonably
withheld or delayed. All purchases of the Raw Materials shall be made according
to the Specifications for each Raw Material component used in the processing of
the Drug Products. Cardinal shall purchase and schedule deliveries of the Raw
Materials as needed to produce quantities of the Drug Products in accordance
with binding Purchase Orders and the forecasts.

      6.3 Pricing Adjustments. Adams and Cardinal shall confer on a regular
basis, but no less than annually, to consider whether new technologies or new
manufacturing methods may exist which likely would reduce Cardinal's cost of
manufacturing the Drug Products. Should any

                                       10
<PAGE>
such technologies and/or methods be identified, then the parties shall mutually
agree upon how to allocate the costs of developing and implementing such
technologies and/or methods prior to implementing and/or developing the same.
Cardinal shall use commercially reasonable efforts to minimize obsolescence
(caused by such new technology) by returning Raw Materials to the sources from
which they were acquired, if possible, and employing good faith efforts to use
such obsolete Raw Materials for other purposes, if possible. Cardinal shall
submit supporting documentation on all claims of obsolescence and statements for
reimbursement thereof, and, upon Adams' request, Cardinal shall deliver, at
Adams's sole cost and expense, all such Raw Materials to Adams upon
reimbursement to Cardinal for the net cost to acquire such obsolete Raw
Materials.

                        ARTICLE VII - SHIPPING; PACKAGING

      7.1 Shipping. Title to the Drug Products and all risk of loss or damage to
the Drug Products shall be allocated as follows:

      (a) Delivery to Cardinal Affiliate. The parties desire for one of
Cardinal's Affiliates located in Grapevine, Texas and/or Lavergne, Tennessee to
distribute the Drug Products for Adams. In the event that such Cardinal
Affiliate is providing distribution services in respect of the Drug Products,
then title to the Drug Products, and all risk of loss or damage in respect
thereto, shall pass to Adams upon delivery of the Drug Products CIP (as such
term is defined and used in Incoterms 2000, ICC Official Rules for
Interpretation of Trade Terms (the "INCOTERMS 2000 RULES") to Cardinal's
Affiliate in Grapevine, Texas or Lavergne, Tennessee; it being understood that
Cardinal shall pay required insurance costs and the cost of carriage to bring
the Drug Products from the Facility to the Cardinal Affiliate location in
Grapevine, Texas and that Cardinal and Adams shall each bear fifty percent (50%)
of the insurance costs and the cost of carriage to bring the Drug Products from
the Facility to the Cardinal Affiliate location in Lavergne, Tennessee.

      (b) Delivery to Third Party. In the event that Adams uses a Third Party to
distribute the Drug Products, then title to the Drug Products, and all risk of
loss or damage in respect thereto, shall pass to Adams upon delivery of the Drug
Products FCA (as such term is defined and used in the Incoterms 2000 Rules) at
Cardinal's Facility. Upon the reasonable request of Adams, Cardinal shall
arrange for shipment of Drug Products on a freight collect basis at the sole
cost and expense of Adams.

Adams will specify its required mode of transportation and the freight forwarder
in each Purchase Order. All shipments of the Drug Products shall be accompanied
by an invoice, dated as of the date on which delivery of the Drug Products is
made to the carrier, listing the number of such Purchase Order, the item number,
the quantity and the unit price for the Drug Products, the total invoice amount
and such other information as may be required in the relevant Purchase Order or
in additional written directions provided by Adams that are not in conflict with
the terms of this Agreement. Any shipment of Drug Products shall be in
accordance with the Specifications. If Cardinal fails to deliver the Drug
Products in the quantities ordered in any Purchase Order within * days
of the date specified in such Purchase Order, then Adams shall be entitled, as
liquidated damages, and not a penalty, to a discount of * percent (*%) off

                                       11

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

* Omitted information is the subject of a request for confidential treatment
  pursuant to Rule 406 under the Securities Act of 1933 and has been
  filed separately with the Securities and Exchange Commission.
<PAGE>
the price of the late-delivered Drug Products for each week that delivery is
delayed, up to a maximum discount of * percent (*%).

      7.2 Packaging. Cardinal shall ship and deliver the Drug Products in such
containers and primary and secondary packaging and with such container closure
system and labeling as set forth in, and in compliance with, the Specifications.
All printed components for Drug Products shall be in accordance with the artwork
and content thereof approved by Adams in writing. Adams shall have the right to
require any special or varied packaging or labeling that it believes is
reasonably necessary to meet any regulatory requirements. Should any component
of any Drug Product packaging or labeling be rendered obsolete by artwork or
other Specification changes, Adams shall reimburse Cardinal at actual
procurement cost for any components affected by such changes which have been
purchased to enable Cardinal to fulfill its obligations with respect to the most
recent forecast estimate. Any such costs relating to obsolescence shall be
factored into the Cost of Goods sold.

                   ARTICLE VIII - RECORDS; TESTING; INSPECTION

      8.1 Records. Cardinal shall make available to Adams all processing
records, documentation and information reasonably requested by Adams: (a) to
assist Adams in determining whether any delivery complies fully with the
Specifications and the requirements of this Agreement ; (b) to assist Adams in
obtaining any and all regulatory approvals necessary to market the Drug
Products; and (c) to enable Adams to comply with any statutory or regulatory
requirements, or with a request by any governmental or regulatory authority.
Before, during and after manufacturing of each Batch hereunder, Cardinal shall,
with respect to such manufacturing: (i) record and keep on file all Batch
Records (as hereinafter defined) documentation, as well as samples of materials
supplied by Adams or Cardinal and used in manufacturing the Drug Products; (ii)
monitor, record and retain documentation of the manufacturing conditions and
environment; and (iii) keep such records for such periods of time as are
required in the Specifications, the cGMPs and any other legal requirements. For
purposes hereof, "BATCH RECORDS" means an analytical report (Certificate of
Analysis) that Cardinal agrees to warrant as accurate to a reasonable degree of
scientific certainty, a quality assurance yield analysis, quality assurance
assay release report, and a copy of all production mix change/deviations and/or
quarantine reports, if used, all prepared in conformance with the cGMPs.

      8.2 Testing. Cardinal shall test or cause to be tested as set forth on
Exhibit B each Batch of the Drug Products produced pursuant to this Agreement
before delivery to Adams. Following Adams' receipt of the Drug Products, Adams
may, at its cost and expense, test samples of each Batch of the Drug Products to
confirm that all the applicable standards and requirements contained in the
Specifications have been met.

      8.3 Inspection; Acceptance. Adams shall accept any delivery of Drug
Products hereunder unless Adams determines in its reasonable opinion that the
delivery does not comply with the terms of the relevant Purchase Order, the
Specifications, and with the requirements of this Agreement. Adams shall inspect
all Drug Products delivered hereunder within thirty (30) days

                                       12

------------
* Omitted information is the subject of a request for confidential treatment
  pursuant to Rule 406 under the Securities Act of 1933 and has been filed
  separately with the Securities and Exchange Commission.
<PAGE>
of its receipt of the Drug Products and all required documentation. Adams shall
provide Cardinal with written notice of its acceptance or rejection of the
delivery within thirty (30) days of receipt of the Drug Products and all
required documentation. Any notice of rejection shall specify the reason(s)
therefor. Except in the event of any investigation, corrective action or
retesting of a delivery, should Adams fail to provide Cardinal with written
notice of its acceptance or rejection of the delivery within thirty (30) days of
receipt of the Drug Products and all required documentation, then the delivery
shall be deemed to have been accepted by Adams on the thirtieth (30th) day after
delivery. If Adams so notifies Cardinal that any such delivery, or any part
thereof, is rejected, then, at Adams' option and as its sole remedy, (a)
Cardinal shall, at no additional charge, deliver replacement Drug Products to
Adams as soon as reasonably practicable thereafter (but, in any event, within
ninety (90) days after the initial notification by Adams); or (b) refund to
Adams any amounts paid to Cardinal in connection with such rejected delivery; it
being understood that any costs incurred by Cardinal associated with rejected
Drug Products shall not be included in the Cost of Goods except as set forth in
Section 8.4.

      8.4 Rejection. In the event that there is a dispute as to the
justification for the rejection of any Batch of the Drug Products by Adams
pursuant to Section 8.3 hereof, after sixty (60) calendar days of analysis and
good faith negotiations, if the parties have failed to agree that such rejection
was justified, then the parties shall employ Quintiles Laboratories, located in
Kansas City, Missouri (the "INDEPENDENT LABORATORY") to resolve the matter. The
parties hereto agree that the employment of the Independent Laboratory and the
process of determining whether the rejection of any Drug Product was justified
shall operate independently of, and in parallel with, Section 8.3 of this
Agreement. Such Independent Laboratory shall test samples of the rejected Drug
Product and review records and test data previously developed by the parties
relating to the Drug Product to ascertain whether the Drug Product was actually
off-Specification and/or the root basis for the alleged failure of such Drug
Product to meet the Specifications. The findings of the Independent Laboratory
shall be binding on both parties. If the Drug Product is found to be within
Specifications, or the reason that the Drug Product was found to be
off-Specification was the result of Adams' negligence, Adams shall pay the costs
of the tests and the Independent Laboratory and, for the purposes of paying
Cardinal, shall be deemed to have accepted the Batch in question (in addition to
the costs of the replacement Drug Product) and shall pay to Cardinal the cost of
the wrongfully rejected Drug Product with interest as provided for in Section
9.1 accruing from the date that payment was originally due on such Drug
Product.. If the Drug Product was found to be off-Specification as a result of
manufacturing, or was otherwise the result of Cardinal's negligence or failure
to comply with Cardinal's representations and warranties under Section 11.1,
Cardinal shall pay the costs of the tests and the Independent Laboratory, and,
at Adams' option, the costs of preparing, inspecting, packaging and delivering
to Adams the replacement Drug Product.

                       ARTICLE IX - FEES AND TERMS OF SALE

      9.1 Payment. In consideration of the satisfactory manufacture and delivery
to Adams of the ordered quantities of the Drug Products, Adams shall pay
Cardinal for all Drug Products accepted by Adams pursuant to Section 8.5 of this
Agreement in accordance with the terms and conditions set forth in Exhibit C
hereto and subject to adjustment in accordance with this Agreement. All payments
under this Agreement shall be payable by wire transfer of immediately available
funds to such account as the receiving party shall designate in writing to the
paying party. In the event that any payment due under this Agreement is not made
when due,

                                       13
<PAGE>
the amount due shall accrue interest beginning on the fifth (5th) day following
the date on which such payment was due, calculated at the annual rate equal to
the higher of one percent (1.0%) per month or two percent (2%) above the thirty
(30)-day LIBOR for U.S. dollars reported in the Wall Street Journal for the due
date, calculated from the due date until paid in full. Such payment when made
shall be accompanied by all interest so accrued.

      9.2 Taxes. Adams shall bear the cost of any taxes of any kind, nature or
description whatsoever applicable to the sale of any Drug Products by Cardinal
to Adams (except for any taxes based upon the income of Cardinal or its
employees), unless Adams is exempt from such taxes and provides to Cardinal, at
the time of the submission of any Purchase Order, tax exemption certificates or
permits acceptable to the appropriate taxing authorities.

      9.3 Inconsistent Terms. Purchase Orders and invoices issued pursuant to
this Agreement and any other directions or instructions issued by either Adams
or Cardinal shall be consistent with this Agreement, and any additional terms or
conditions stated in any such Purchase Orders, invoices or other directions or
instructions shall not be binding upon the parties hereto unless separately
agreed to by the receiving party in writing. In the event of an inconsistency
between any such Purchase Orders, invoices or other directions or instructions
and the terms and conditions of this Agreement, the terms and conditions of this
Agreement shall prevail.

                    ARTICLE X- RIGHT OF INSPECTION AND AUDIT

      10.1 Inspections. During the term of this Agreement, duly-authorized
employees, agents and representatives of Adams shall be granted access upon at
least twenty-four (24) hours prior notice and at reasonable times during regular
business hours to only the portion of the Facility or any Alternate Facility, as
the case may be, where Cardinal manufactures the Drug Products for the purpose
of inspecting and verifying that Cardinal is manufacturing, packaging, storing,
disposing of and transporting the Drug Products in accordance with cGMPs and the
Specifications. For purposes of this Section 10.1 and Section 10.2,
duly-authorized agents and representatives shall be required to sign Cardinal's
standard Confidential Disclosure Agreement prior to being allowed access to
Cardinal's Facility or any Alternate Facility. Adams representatives shall have
no responsibility for supervision of Cardinal employees performing the
manufacture, packaging, storage, disposal or transportation operations
themselves. The inspection rights set forth in this Article X are for the
purpose of determining Cardinal's compliance with the terms of this Agreement.
Cardinal shall make available to Adams all records and reports pursuant to
Section 8.1. Such records and reports shall be subject to the confidentiality
obligations under Section 2.3 of this Agreement. Upon reasonable prior written
notice to Cardinal, Adams shall have the right to conduct inventory
reconciliation audits and other audits in respect of any Starting Materials as
reasonably required for its internal control, at Adams' sole cost and expense,
and at times reasonably acceptable to Cardinal so as to avoid any disruption to
Cardinal's business operations at the Facility or Alternate Facility. If, as a
result of any such inspection, Adams concludes that Cardinal is not in material
compliance with any of its obligations hereunder, it shall so notify Cardinal in
writing, specifying such areas of noncompliance in reasonable detail. Cardinal
shall provide to Adams, within thirty (30) days of Adams' request, a written
response to Adams' notice including, if applicable, an action plan for

                                       14
<PAGE>
those areas of material noncompliance with which Cardinal agrees, or in the
alternative a written statement setting forth Cardinal's disagreement with
Adams's conclusion that there has been noncompliance.

      10.2 Inspections by Regulatory Authorities. Cardinal shall inform Adams in
writing within twenty-four (24) hours of any notification to Cardinal of any
site visits to Cardinal's Facility, or Alternate Facility, as the case may be,
by the FDA, state or federal regulatory agencies or any other governmental or
regulatory agency, relating, directly to the manufacture of the Drug Products,
and shall provide to Adams all materials or the portion thereof directly related
thereto. For routine inspections, Adams shall have no right to participate in
any site visits. In the event of a pre-approval inspection related to a New Drug
Product, Adams shall have the option of participating in any site visit by any
governmental or regulatory agency, if the site visit relates directly to the
manufacturing, storage, disposal and transportation of the Drug Products. Should
Adams not participate in the site visit, Cardinal shall report in writing the
results of the visit to Adams within seven (7) days of the occurrence thereof.
In the event that any such governmental or regulatory agency finds that the site
is deficient or unsatisfactory in any respect, Cardinal shall cure all material
deficiencies within such cure period as ordered by the government or regulatory
agency. If all deficiencies are not cured within the required time frame, Adams
shall have the option to immediately terminate this Agreement, without
liability.

      10.3  Audits.

      (a) By Adams. Adams shall have the right, without cause, no more than one
(1) time in any twelve (12) month period upon reasonable notice and during
normal business hours, to review records of Cardinal at the Facility, or to have
a third-party consultant review such records of Cardinal, as may be necessary to
verify the accuracy of the amounts invoiced to Adams hereunder; provided,
however, that Adams shall have additional rights of review and audit as shall be
necessary to the extent that Adams shall have a reasonable basis and need for
such additional reviews and audits. Should such review disclose any overpayment
by Adams, then, at Adams' option, Cardinal shall either refund to Adams the
amount of such overpayment, or issue to Adams a credit in the amount of such
overpayment. Adams shall pay all fees of the accountants or other personnel
performing such verification unless it discloses any overstatement of amounts
invoiced of more than two percent (2%), in which case Cardinal shall bear all
reasonable costs of the audit.

      (b) By Cardinal. Cardinal shall have the right, without cause, no more
than one (1) time in any twelve (12) month period upon reasonable notice and
during normal business hours, to review such records of Adams, or to have a
third-party consultant review such records of Cardinal, as may be necessary to
verify the accuracy of the amounts paid by Adams to Cardinal hereunder;
provided, however, that Cardinal shall have additional rights of review and
audit as shall be necessary to the extent that Cardinal shall have a reasonable
basis and need for such additional reviews and audits. Should such review
disclose any underpayment by Adams, then, at Cardinal's sole option, Adams shall
either pay to Cardinal the amount of such underpayment, or Cardinal may setoff
the amount of such overpayment against any amounts owed by Cardinal or one of
its Affiliates to Adams or one of its Affiliates. Cardinal shall pay all fees of
the accountants or other personnel performing such verification unless it
discloses any

                                       15
<PAGE>
understatement of amounts invoiced of more than two percent (2%), in which case
Adams shall bear all reasonable costs of the audit.

                             ARTICLE XI - WARRANTIES

      11.1  Cardinal Warranties. Cardinal represents and warrants that:

      (a) subject to Section 11.4, at the time of shipment hereunder, the Drug
Product supplied by it hereunder shall meet the Specifications

      (b) subject to Section 11.4, the Drug Product supplied by it hereunder
shall be manufactured in accordance with cGMPs and the Specifications;

      (c) subject to Section 11.4, it shall perform its obligations hereunder in
compliance with all applicable federal, state and local laws and regulations,
including without limitation the Act, FDA's then cGMPs, and any and all health,
safety and environmental laws and regulations applicable to Cardinal's
operations and performance hereunder;

      (d) all Drug Products furnished to Adams hereunder shall have been
manufactured in all material respects in accordance with the terms of the
Quality Agreement;

      (e) the title conveyed on all Drug Products furnished to Adams hereunder
shall be good, and its transfer rightful, and the Drug Products shall be
delivered free from any security interest or other lien or encumbrance, other
than claims for payment under Section 9.1 hereof, provided that Cardinal makes
no representation with respect to any lien or other encumbrance relating to
Starting Materials delivered to Cardinal to be held on consignment;

      (f) it owns the its intellectual property or has the right to use its
intellectual property in the course of its performance hereunder (provided,
however, that Cardinal makes no representation regarding the Transferred
Know-How (as defined in the Asset Purchase Agreement)); and

      (g) it is free to enter into this Agreement; and, it has, and will
continue to have, the legal power, authority and right to perform its
obligations hereunder.

THE LIMITED WARRANTY SET FORTH IN THIS SECTION 11.1 IS IN LIEU OF ALL OTHER
WARRANTIES, EXPRESS OR IMPLIED, INCLUDING ANY WARRANTY OF MERCHANTABILITY AND
ANY WARRANTY OF FITNESS FOR A PARTICULAR PURPOSE. EXCEPT FOR THE WARRANTIES
EXPRESSED IN THIS SECTION 11.1, CARDINAL MAKES NO OTHER WARRANTY, EITHER EXPRESS
OR IMPLIED, WITH RESPECT TO THE DRUG PRODUCT. IN ADDITION, CARDINAL HEREBY
DISCLAIMS LIABILITY FOR INCIDENTAL OR CONSEQUENTIAL DAMAGES FOR BREACH OF ANY
EXPRESS OR IMPLIED WARRANTY, INCLUDING ANY IMPLIED WARRANTY OF MERCHANTABILITY
AND ANY IMPLIED WARRANTY OF FITNESS FOR A PARTICULAR PURPOSE WITH RESPECT TO
DRUG PRODUCT.

                                       16
<PAGE>
      11.2  Adams Warranties. Adams represents and warrants that:

      (a) the Starting Materials supplied by it hereunder shall meet the
Specifications;

      (b) it shall perform its obligations hereunder in compliance with all
applicable federal, state and local laws and regulations, including without
limitation the Act, FDA's then cGMPs, and any and all health, safety and
environmental laws and regulations applicable to its performance hereunder;

      (c) it has, and shall have, good, complete and valid rights to the Drug
Products and Starting Materials. To its knowledge, after reasonable due
diligence, there are no patents owned by others related to the Starting
Materials or Drug Products which would be infringed or misused by Cardinal's
performance of the Agreement and, to its knowledge, no trade secrets or other
proprietary rights of others related to the Starting Materials or Drug Products
which would be infringed or misused by Cardinal's performance of this Agreement;

      (d) the title conveyed on all Starting Materials furnished to Cardinal
hereunder shall be good, and its transfer rightful, and the Starting Materials
shall be delivered free from any security interest or other lien or encumbrance;
and

      (e) it owns its intellectual property or has the right to use its
intellectual property in the course of its performance hereunder; and

      (f) it is free to enter into this Agreement; and, it has, and will
continue to have, the legal power, authority and right to grant the exclusive
rights set forth in Section 3.1 hereof and to perform its obligations hereunder.

THE LIMITED WARRANTY SET FORTH IN THIS SECTION 11.2 IS IN LIEU OF ALL OTHER
WARRANTIES, EXPRESS OR IMPLIED, INCLUDING ANY WARRANTY OF MERCHANTABILITY AND
ANY WARRANTY OF FITNESS FOR A PARTICULAR PURPOSE. EXCEPT FOR THE WARRANTIES
EXPRESSED IN THIS SECTION 11.2, ADAMS MAKES NO OTHER WARRANTY, EITHER EXPRESS OR
IMPLIED, WITH RESPECT TO THE DRUG PRODUCTS. IN ADDITION, ADAMS HEREBY DISCLAIMS
LIABILITY FOR INCIDENTAL OR CONSEQUENTIAL DAMAGES FOR BREACH OF ANY EXPRESS OR
IMPLIED WARRANTY, INCLUDING ANY IMPLIED WARRANTY OF MERCHANTABILITY AND ANY
IMPLIED WARRANTY OF FITNESS FOR A PARTICULAR PURPOSE WITH RESPECT TO THE DRUG
PRODUCTS.

      11.3 Recalls. In the event (a) any government authority issues a request,
directive or order that any Drug Product be recalled, or (b) a court of
competent jurisdiction orders such a recall, or (c) Adams reasonably determines
after consultations with Cardinal that a Drug Product should be recalled because
the Drug Product does not conform to the Specifications, the parties shall take
all appropriate corrective actions. Cardinal shall be responsible for Cardinal's
and Adams' expenses of the recall to the extent such recall results from the
breach of Cardinal's warranties under this Agreement, PROVIDED, HOWEVER,
CARDINAL SHALL NOT BE

                                       17
<PAGE>
LIABLE IN ANY EVENT FOR SPECIAL, INDIRECT, INCIDENTAL OR CONSEQUENTIAL DAMAGES,
INCLUDING, WITHOUT LIMITATION, LOST REVENUES OR PROFITS OR DAMAGES TO BUSINESS
REPUTATION RESULTING FROM SUCH RECALL. Adams shall be responsible for all Adams'
and Cardinal's expenses of the recall to the extent that such recall results
from a cause other than Cardinal's breach of its warranties under this
Agreement, PROVIDED, HOWEVER, ADAMS SHALL NOT BE LIABLE IN ANY EVENT FOR
SPECIAL, INDIRECT, INCIDENTAL OR CONSEQUENTIAL DAMAGES, INCLUDING, WITHOUT
LIMITATION, LOST REVENUES OR PROFITS OR DAMAGES TO BUSINESS REPUTATION RESULTING
FROM SUCH RECALL. In the event that such recall results from the joint
negligence of Adams and Cardinal, each party shall be responsible for the
expenses of recall in direct proportion to each party's percentage of fault as
determined jointly by the parties, PROVIDED, HOWEVER, THAT NEITHER PARTY SHALL
BE LIABLE IN ANY EVENT FOR SPECIAL, INDIRECT, INCIDENTAL OR CONSEQUENTIAL
DAMAGES, INCLUDING, WITHOUT LIMITATION, LOST REVENUES OR PROFITS OR DAMAGES TO
BUSINESS REPUTATION RESULTING FROM SUCH RECALL. In the event of an FDA-initiated
nationwide recall where the scope of the recall is directed at all products
containing any of the active ingredients in the Drug Product and where the
purpose of such recall is not attributable to the fault of either Adams or
Cardinal, Adams shall be responsible for all Adams and Cardinal expenses of the
recall, PROVIDED, HOWEVER, THAT NEITHER PARTY SHALL BE LIABLE IN ANY EVENT FOR
SPECIAL, INDIRECT, INCIDENTAL OR CONSEQUENTIAL DAMAGES, INCLUDING, WITHOUT
LIMITATION, LOST REVENUES OR PROFITS OR DAMAGES TO BUSINESS REPUTATION RESULTING
FROM SUCH RECALL. For the purposes of this Agreement, the expenses of recall
shall include, without limitation, the expenses of notification or destruction
or return of the recalled Drug Product and Adams' or Cardinal's total,
unrecoverable, actual, internal costs for manufacturing and shipping the Drug
Product that was later subject to recall.

      11.4 Transition. As contemplated by Section 1.3.1(c) of the Asset Purchase
Agreement, the parties acknowledge that upgrades to the Facility located in Fort
Worth may be required. Accordingly, it is acknowledged that Cardinal's
warranties as of the Effective Date shall be limited to manufacturing Drug
Products at the Fort Worth Facility in accordance with the same standards to
which such Drug Products were manufactured by Adams during the period from
January 1, 2004 through the Effective Date. Thereafter during the Term, as and
when upgrades to the Fort Worth Facility are implemented and improvements to the
manufacturing process are mutually approved and implemented, Cardinal shall
warrant that Drug Products supplied at the Fort Worth Facility hereunder are
manufactured in accordance with the then-applicable Specifications. After the
date that mutually approved improvements to the manufacturing process are
implemented, but in any event no later than the second anniversary of the
Closing under the Asset Purchase Agreement (or, in the case of improvements that
require the cooperation of Adams and/or the approval of regulatory authorities,
such later date as necessary to obtain such cooperation and/or approval), the
warranties in Section 11.1(a), (b) and (c) shall no longer be qualified by this
Section 11.4.

                    ARTICLE XII - INDEMNIFICATION; INSURANCE

                                       18
<PAGE>
      12.1 Indemnity by Cardinal. Cardinal shall indemnify and hold Adams,
Adams' Affiliates, their agents, employees, officers, directors and permitted
successors and assigns (collectively, the "ADAMS INDEMNITEES") harmless from and
against any and all liabilities, losses, claims, demands, damages, costs,
expenses, settlement made or reasonably approved by Cardinal, royalty fees, and
judgments (including reasonable attorneys' fees and other costs of litigation),
however caused and/or on any theory of liability (collectively, "CLAIMS"),
incurred by or rendered against the Adams Indemnitees for personal injury,
sickness, disease or death or other damages which arise out of:

      (a) the negligence or intentional misconduct of Cardinal with respect to
its activities and those of the Cardinal Indemnitees (as defined in Section 12.2
below) under this Agreement, including, but not limited to its manufacturing,
handling and delivery of Drug Product, except to the extent such Claims result
from the breach, negligence or intentional misconduct of Adams or the Adams
Indemnitees;

      (b) the breach by Cardinal of its warranty obligations under this
Agreement;

      (c)   any Claim regarding a work-related injury to any Cardinal employee;

      (d) any Claim that any of Cardinal's intellectual property (excluding
Transferred Know How) infringes any patent, trade secret, trademark, copyright,
or other proprietary interest; and/or

      (e) any other action or omission by Cardinal or the Cardinal Indemnitees
relating to this Agreement, or breach by Cardinal of its obligations under this
Agreement.

      12.2 Indemnity by Adams. Adams shall indemnify and hold Cardinal,
Cardinal's Affiliates, their agents, employees, officers, directors and
permitted successors and assigns (collectively, the "CARDINAL INDEMNITEES")
harmless from and against any and all Claims incurred by or rendered against the
Cardinal Indemnitees for personal injury, sickness, disease or death or other
damages which arise out of:

      (a) the packaging, use, sale or other distribution of Drug Product by
Adams, or any Adams Indemnitee or licensee, including, without limitation, any
personal injury or product liability claims (under any theory of product
liability, including, but not limited to, actions in the form of tort, warranty
or strict liability); except to the extent that any of the foregoing results
from the breach, negligence or intentional misconduct of Cardinal or the
Cardinal Indemnitees;

      (b) the breach by Adams of its warranty obligations under this Agreement;

      (c) any other action or omission by Adams or the Adams Indemnitees
relating to this Agreement, or breach by Adams of its obligations under this
Agreement;

      (d) any Claim regarding a work-related injury to any Adams employee;

                                       19
<PAGE>
      (e) any Claim that any Starting Materials, Drug Products or Adams
Intellectual Property or Transferred Know How infringes any patent, trade
secret, trademark, copyright, or other proprietary interest; and/or

      (f) any actions, errors, omissions, misrepresentations, or breach of
obligations made by or on behalf of Adams or the Adams Indemnitees relating to
any documentation provided to and/or required by U.S. Customs Service or
comparable foreign agencies relating to the Drug Product.

      12.3 Cooperation. Adams and Cardinal agree to cooperate with each other in
the defense of any claims made by Third Party(ies) to which this Article XII
applies. If either of the parties wishes to exercise its right to be indemnified
under Sections 12.1 and 12.2, such rights will be subject to the party seeking
indemnity:

      (a) promptly notifying the indemnifier of the claim to be indemnified;

      (b) allowing the indemnifier, if the indemnifier so requests, to conduct
and control (at the cost and expense of the indemnifier) the defense of such a
claim and any related settlement negotiations; and

      (c) affording all reasonable assistance to the indemnifier (at the cost
and expense of the indemnifier) and making no admission prejudicial to the
defense of such a claim.

      12.4 Lost Profits; Damage to Business Reputation. IN NO EVENT SHALL ADAMS
OR CARDINAL BE LIABLE TO THE OTHER FOR LOST PROFITS, OR ANY CONSEQUENTIAL,
SPECIAL, INCIDENTAL OR INDIRECT DAMAGES OR DAMAGES TO BUSINESS REPUTATION.

      12.5  Insurance.

      (a) During the Term of this Agreement, Cardinal shall obtain and maintain
the following insurance with limits not less than those specified below:

            (i)   Commercial General Liability insurance with a limit of Five
                  Million Dollars ($5,000,000) per occurrence;

            (ii)  Products and Completed Operations Liability insurance with a
                  limit of Five Million Dollars ($5,000,000) per occurrence;

            (iii) Worker's Compensation and Employers Liability Insurance with
                  statutory limits for Workers' Compensation and Employers'
                  Liability limits of One Million Dollars ($1,000,000) per
                  accident; and

            (iv)  Professional Services Liability insurance with a Two Million
                  Dollar ($2,000,000) limit per claim.

                                       20
<PAGE>
      In lieu of insurance, Cardinal may self-insure any or a portion of the
required insurance. In the event that any of the required policies of insurance
are written on a claims-made basis, then such policies shall (i) be maintained
during the entire term of this Agreement and (ii) be maintained for a period of
not less than three (3) years following the termination or expiration of this
Agreement. Cardinal shall waive subrogation rights against Adams for workers'
compensation benefits and shall obtain a waiver from any insurance carriers with
which Cardinal carries workers' compensation insurance releasing their
subrogation rights against Adams. Adams shall be named as an additional insured
under the Commercial General Liability and Products and Completed Operations
Liability insurance policies as respects Adams's liability for damages arising
from the services provided under this Agreement. Such additional insured status
shall end upon the termination or expiration of this Agreement unless the
policies are written on a claims-made basis when such additional insured status
will continue for the period of time Cardinal is required to maintain such
insurance under the terms of this Agreement. Cardinal shall furnish certificates
of insurance to Adams evidencing the required insurance and additional insured
status as soon as practicable after the Effective Date and within thirty (30)
days after renewal of such policies. Such certificates shall state that
Cardinal's insurers will endeavor to provide thirty (30) days written notice of
any cancellation prior to the policy(ies) expiration date(s). Each insurance
policy that is required under this Section 12.5(a) shall be obtained from an
insurance carrier with an A.M. Best rating of at least A-VII.

      (b) During the Term of this Agreement, Adams shall obtain and maintain the
following insurance with limits not less than those specified below:

            (i)   Commercial General Liability insurance with a limit of Five
                  Million Dollars ($5,000,000) per occurrence;

            (ii)  Products and Completed Operations Liability insurance with a
                  limit of Five Million Dollars ($5,000,000) per occurrence;

            (iii) Worker's Compensation and Employers Liability Insurance with
                  statutory limits for Workers' Compensation and Employers'
                  Liability limits of One Million Dollars ($1,000,000) per
                  accident; and

            (iv)  All Risk Property Insurance, including transit coverage, in an
                  amount equal to full replacement value covering Adams's
                  property while it is at Cardinal's Facility or in transit to
                  or from Cardinal's Facility.

      In the event that any of the required policies of insurance are written on
a claims-made basis, then such policies shall (i) be maintained during the
entire term of this Agreement, (ii) be maintained for a period of not less than
three (3) years following the termination or expiration of this Agreement. Adams
shall waive subrogation rights against Cardinal for workers' compensation
benefits and shall obtain a waiver from any insurance carriers with which Adams
carries workers' compensation insurance releasing their subrogation rights
against Cardinal. Cardinal Health, Inc. and its subsidiaries and affiliates
shall be named as additional insureds under the Commercial General Liability and
Products and Completed Operations Liability insurance policies as respects
Cardinal's liability for damages arising from the services provided

                                       21
<PAGE>
under this Agreement. Such additional insured status shall end upon the
termination or expiration of this Agreement unless the policies are written on a
claims-made basis when such additional insured status will continue for the
period of time Adams is required to maintain such insurance under the terms of
this Agreement. Adams shall furnish certificates of insurance to Cardinal
evidencing the required insurance and additional insured status as soon as
practicable after the Effective Date and within thirty (30) days after renewal
of such policies. Such certificates shall state that Adams's insurers will
endeavor to provide thirty (30) days written notice of any cancellation prior to
the policy(ies) expiration date(s). Each insurance policy which is required
under this Section 12.5(b) shall be obtained from an insurance carrier with an
A.M. Best rating of at least A-VII.

                       ARTICLE XIII - TERM AND TERMINATION

      13.1 Term. Unless earlier terminated as provided for herein, this
Agreement shall take effect as of the Closing (as defined in the Asset Purchase
Agreement) and shall run for an initial term of ten (10) years ending on March
31, 2014 (the "INITIAL TERM"). This Agreement may be renewed for one or more
additional periods of one Contract Year, provided that negotiations for renewal
are commenced by the parties at least six (6) months prior to expiration of the
Initial Term, or any extension thereof, and the parties agree in writing to
terms of renewal no less than six (6) months prior to the expiration of the
Initial Term, or any extension thereof. The Initial Term and any renewal period
shall be deemed the "TERM" of this Agreement.

      13.2  Termination.

      (a) Cardinal or Adams, as the case may be, shall have the right to
immediately terminate this Agreement if: (i) the other party files a petition in
bankruptcy, or enters into an agreement with its creditors, or applies for or
consents to the appointment of a receiver or trustee, or makes an assignment for
the benefit of creditors, or suffers or permits the entry of an order
adjudicating it to be bankrupt or insolvent and such order is not discharged
within thirty (30) days; (ii) if the other party materially breaches any of the
non-monetary provisions of this Agreement or the Commercial Services Agreement
and such breach is not cured within thirty (30) days after the giving of written
notice, the party claiming the breach shall have the right to terminate this
Agreement; (iii) if the other party materially breaches any of the monetary
provisions of this Agreement and such breach is not cured within twenty (20)
days after the giving of written notice, the party claiming the breach shall
have the right to terminate this Agreement; (iv) Cardinal is unable on *
consecutive occasions to supply the same Drug Product in accordance with Section
4.2 hereof; (v) Cardinal is unable to cure any supply and/or manufacturing
problem in accordance with Section 3.3 hereof within * years of the
commencement of such problem; or (vi) if any required license, permit or
certificate required of the other party is not approved and/or issued, or is
revoked (including, but not limited to the FDA), by any applicable governmental
regulatory authority; provided that such other party may no longer appeal such
decision or reapply or otherwise pursue such permit, license or certificate.

      (b) Adams shall have the right to terminate this Agreement upon twelve
(12) months prior written notice to Cardinal provided that on or before the
termination date, subject to the terms and conditions set forth herein, Adams
shall pay Cardinal a termination fee (the

                                       22

----------
* Omitted information is the subject of a request for confidential
  treatment pursuant to Rule 406 under the Securities Act of 1933 and has been
  filed separately with the Securities and Exchange Commission.
<PAGE>
"TERMINATION FEE") equal to the sum of (1) the net book value (as defined below)
of the assets acquired under the Asset Purchase Agreement, including any capital
improvements to such assets made prior to the effective date of termination,
however, subject to appropriate adjustment to the extent that Cardinal has
disposed of, replaced or improved upon any assets acquired under the Asset
Purchase Agreement, (2) all documented and reasonable costs incurred by Cardinal
to terminate such business including without limitation severance costs, and (3)
Five Million Dollars ($5,000,000). Upon payment of the Termination Fee, Cardinal
will convey to Adams title to all of the equipment and assets included in the
calculation of net book value under clause (1) above with appropriate warranties
as to title. Adams and Cardinal agree that if Adams terminates this Agreement
prior to the expiration of the term, the amount of damages would be difficult to
ascertain. Therefore, the parties further agree that the Termination Fee
constitutes liquidated damages and is not a penalty. Notwithstanding the
foregoing, the obligation to convey assets shall not restrict Cardinal's right
to replace or otherwise dispose of such assets; it being understood, however,
that any such conveyances or dispositions shall proportionately require
adjustments to the net book value calculation under clause (1) above. For
purposes of this Section 13.2, net book value shall be determined in accordance
with Cardinal's normal carrying values for acquired assets and United States
General Accepted Accounting Principles ("GAAP"); provided, however, that such
values shall be adjusted to reflect accelerated depreciation taken by Cardinal
for billing purposes under this Agreement.

      13.3  Duties Upon Termination.

      (a) Adams' Duties. In the event Adams terminates this Agreement (other
than as a result of a breach of this Agreement by Cardinal) or if Cardinal
terminates this Agreement under Section 13.2 hereof, Adams will be required to
pay Cardinal for the direct cost of all materials, including but not limited to
Raw Materials, purchased by Cardinal pursuant to binding Purchase Orders, and
all expenses incurred by Cardinal in connection with returning all remaining
inventories of the Drug Product and Starting Materials to Adams. Adams shall
specify the location in the continental United States to which delivery, at
Adams' expense, of the foregoing is to be made.

      (b) Cardinal's Duties. In the event Cardinal terminates this Agreement
(other than as a result of a breach of this Agreement by Adams) or if Adams
terminates this Agreement under Section 13.2 hereof, Cardinal, at its expense,
will be required to return all remaining inventories of the Drug Product to
Adams. Adams shall specify the location in the continental United States to
which delivery, at Cardinal's expense, of the foregoing is to be made.
Proprietary Information exchanged between Adams and Cardinal shall be promptly
returned upon termination of the Agreement. In addition, Cardinal shall
reimburse Adams for all costs and related out-of-pocket expenses incurred by
Adams in obtaining the Drug Products from any Third Party above and beyond the
amount Adams would have paid Cardinal for the same Drug Products through the end
of the then-current Initial Term or any renewal term, as the case may be,
including without limitation, the cost of validating the manufacture and
packaging of the Drug Products at a Third Party's facilities. In order to permit
Adams to make a smooth transition to a new supplier of the Drug Products, in the
event that this Agreement should terminate for any reason, then Adams shall be
permitted, in its discretion, to continue to submit Purchase Orders to Cardinal

                                       23
<PAGE>
in accordance with Section 4.2, and Cardinal shall continue to supply the Drug
Products to Adams in accordance with such Purchase Orders and this Agreement,
for a period of one hundred twenty (120) days after the termination of this
Agreement, and this Agreement shall remain in effect with respect to such
Purchase Orders until the expiration or termination of the Purchase Orders.

      (c)         Profit Sharing.

        (i)       If Adams terminates this Agreement pursuant to Section 13.2(b)
                  and pays the Termination Fee, Adams' obligation to share
                  profits from any Drug Products as provided for in Exhibit C
                  shall apply to any saleable inventory or work-in-process
                  manufactured by Cardinal as of the date of termination.

        (ii)      If this Agreement is terminated as a result of a breach by
                  Cardinal, then Adams' obligations to share profits from any
                  Drug Products as provided in Exhibit C shall apply to any Drug
                  Products sold during the Initial Term or the applicable
                  renewal term, provided, however, that for purposes of
                  determining Gross Profit under Exhibit C, the Cost of Goods
                  Sold shall be the higher of (A) the amount Adams would have
                  paid Cardinal for the same Drug Products or (B) the actual
                  cost paid by Adams for the Drug Products after the termination
                  date. Cardinal shall offset the profit sharing component
                  against the amounts, if any, payable to Adams under Section
                  13.3(b) above. However, in no event shall the profit sharing
                  result in a net payment or liability owing from Adams to
                  Cardinal. Adams shall use all commercially reasonable efforts
                  to minimize the actual cost paid by Adams for Drug Products
                  during the period for which Cardinal has obligations under
                  this Section 13.3(c)(ii).

        (iii)     If this Agreement is terminated as a result of a breach by
                  Adams, then Adams' obligations to share profits from any Drug
                  Products as provided in Exhibit C shall apply to any Drug
                  Products sold during the Initial Term or the applicable
                  renewal term; provided, however, that for purposes of
                  determining Gross Profit under Exhibit C, the Cost of Goods
                  Sold shall be the amount Adams would have paid Cardinal for
                  the same Drug Products. In addition, if, after a termination
                  as a result of Adams' breach, Adams is able to procure Drug
                  Products at a cost less than the amount Adams would have paid
                  Cardinal for the same Drug Product (the "Third Party Actual
                  Cost"), Cardinal shall be entitled to the difference between
                  the amount Adams would have paid Cardinal for the same Drug
                  Product and the Third Party Actual Cost for the Initial Term
                  or the applicable renewal term.

      13.4 Continuing Obligations. The rights and obligations of each of the
parties with respect to payment obligations incurred prior to termination and as
set forth in Section 2.1 (second and third sentences only), Section 2.2, Section
2.3, Section 8.1, Article IX, Section 10.3, Article XI, Article XII, Article
XIII, Section 14.1, and Section 14.3 of this Agreement shall continue
notwithstanding the termination of this Agreement for any reason.

                                       24
<PAGE>
                           ARTICLE XIV - MISCELLANEOUS

      14.1 Governing Law. This Agreement shall be governed by and interpreted in
accordance with the laws of the State of New Jersey without regard to its
conflict of laws provisions.

      14.2 Export of Finished Product. Adams acknowledges that all Drug Products
provided by Cardinal hereunder are subject to the U.S. export control laws and
regulations. Adams will not export, re-export or otherwise dispose of Drug
Product provided pursuant to this Agreement except in strict compliance with the
letter and spirit of U.S. export laws and regulations, including but not limited
to the laws and regulations administered by the Bureau of Export Administration
of the U.S. Department of Commerce, the Office of Foreign Assets Control of the
U.S. Department of the Treasury and the Office of Defense Trade Controls of the
U.S. Department of State.

      14.3 Notices. Any and all notices provided for shall be sent to the
respective parties at the following addresses by certified or registered mail or
sent by a nationally-recognized overnight courier service:

      If to Cardinal:      Cardinal Health PTS, LLC
                           14 Schoolhouse Road
                           Somerset, New Jersey 08873
                           Attention: President, Modified Release Technologies
                           Facsimile No.: 732.537.6491

      With a copy to:      Cardinal Health PTS, LLC
                           7000 Cardinal Place
                           Dublin, Ohio 43017
                           Attention:  Vice President and Associate General
                           Counsel, Pharmaceutical Technologies & Services
                           Facsimile No.: 614.757.5051

      If to Adams:         Adams Laboratories, Inc.
                           d/b/a Adams Respiratory Therapeutics
                           Colonial Court
                           409 Main Street
                           Chester, New Jersey  07930
                           Attention: Walter E. Riehemann, Esq.,
                           General Counsel
                           Facsimile No.: 908.879.9784

      With a copy to:      Kelley Drye & Warren LLP
                           200 Kimball Drive
                           Parsippany, New Jersey  07054
                           Attention:  Christopher G. FitzPatrick, Esq.

                                       25
<PAGE>
                           Facsimile No.:  973.503.5950

or to such other addresses as may be subsequently furnished by one party to the
other in writing. Any such notice shall be deemed effective from the date of
mailing.

      14.4 Dispute Resolution. If there is a dispute, controversy or claim
arising out of or related to this Agreement, including but not limited to any
claim of breach, termination or invalidity (any such controversy, claim, or
dispute, a "DISPUTE"), the parties hereto shall use good faith efforts to
attempt to resolve such claim in accordance with this Section 14.4. The parties
will promptly seek to resolve any such claim by negotiations between executives
of the parties and an authorized representative of each party shall meet at
least once to attempt to resolve any such dispute. Either party may initiate
this procedure by requesting the other to meet within fifteen days after the
date of such request, with such meeting to be held in Morristown, New Jersey, or
such other location as may be mutually agreed. If the dispute is not resolved
within twenty (20) days after the initial meeting, the parties agree first to
try in good faith to settle the dispute by mediation administered by the CPR
Institute for Dispute Resolution under its Commercial Mediation Rules before
resorting to arbitration, litigation, or some other dispute resolution
procedure. If the dispute has not been resolved pursuant to such mediation
within sixty (60) days after the commencement of mediation, or if either party
will not participate in mediation, then either party may initiate litigation.
Nothing herein shall restrict the right of a party to seek a preliminary
injunction or other judicial relief if in that party's judgment such judicial
proceedings are necessary or appropriate to avoid irreparable damage. All
applicable statutes of limitation shall be tolled while the procedures specified
in this Section 14.4 are pending. The parties will take all such actions, if
any, which may be necessary or appropriate to effectuate such tolling.

      14.5 Equitable Relief. Notwithstanding the foregoing, the remedy at law
for any breach of the provisions of this Agreement may be inadequate, and,
accordingly, an aggrieved party seeking equitable relief or remedies for such a
breach shall have the right and is hereby granted the privilege, in addition to
all other remedies at law or in equity, to proceed directly in a court of
competent jurisdiction to seek temporary or preliminary equitable relief.

      14.6 Partial Invalidity. In the event one or more terms of this Agreement
are found to violate the provisions of any applicable statute, law or
regulation, the parties hereto shall negotiate in good faith to modify this
Agreement, but only to the extent necessary to make this Agreement valid and
enforceable, having full regard for applicable laws and the intent and purposes
of the parties entering into this Agreement.

      14.7 Independent Contractor. The parties hereto are independent
contractors under this Agreement and neither of the parties hereto shall have
any right or authority to assume or create any obligations on behalf of, or in
the name of any other party hereto or to bind the other party hereto to any
contract, agreement or undertaking with any third party without the written
consent of the other party hereto.

      14.8 Entire Agreement. This Agreement (together with the Asset Purchase
Agreement, Commercial Services Agreement and Quality Agreement) and all Exhibits
constitute the entire

                                       26
<PAGE>
agreement between the parties relating to the subject matter of this Agreement,
and this Agreement may not be varied except in writing signed by a duly
authorized representative of each party. This Agreement may be executed in
multiple counterparts, which may be delivered by facsimile, each of which shall
have the force and effect of an original.

      14.9 Assignability. Neither party shall assign this Agreement other than
to Affiliates; however, in the event of any assignment, performance shall be
guaranteed by the assignor in form satisfactory to the other party.

      14.10 Successors and Permitted Assigns. This Agreement shall be binding
upon and inure to the benefit of the permitted successors or permitted assigns
of Cardinal and Adams respectively.

      14.11 Force Majeure. Each of the parties shall be excused from the
performance of its obligations in the event such performance is prevented by a
cause beyond the reasonable control of such party, including without limitation,
act of God; regulation or law of any government or any agency thereof, including
any government, court-ordered or voluntary recall not attributable to the fault
of Adams or Cardinal; war; terrorism; insurrection or civil commotion;
destruction of production facilities or materials by earthquake, fire, flood or
storm; labor disturbance involving non-Cardinal and/or non-Cardinal Affiliate
employees; epidemic; or failure of suppliers (which Adams has required Cardinal
to use in connection with the performance of its obligations hereunder), public
utilities or common carriers. Such excuse shall continue as long as the
condition preventing the performance continues, plus thirty (30) days after the
termination of such condition. Excused non-performance shall not include any
act, omission or circumstance arising from the negligent or willful act of the
party claiming excused non-performance, or lying within such party's reasonable
commercial ability to prevent.

      14.12 Announcements. Neither party shall, without the other party's prior
written consent, make any announcement, press release or other disclosure
regarding this Agreement or that any business relationship exists between the
parties.

      14.13 Trademarks. Except for use on the Drug Products as provided in the
Specifications, Cardinal shall not use Adams' trademarks, service marks, Adams'
name or logos on any other goods or products, or on any advertising or
promotional materials, without first obtaining the prior written consent of
Adams.

      14.14 UN Convention on Contracts. The parties hereby expressly disclaim
the application of the UN Convention on Contracts for the International Sale of
Goods with respect to this Agreement.

                            [signature page follows]

                                       27
<PAGE>
      IN WITNESS WHEREOF, the parties have caused this Agreement to be entered
into by their duly authorized representatives as of the day and year first set
forth above.

CARDINAL HEALTH PTS, LLC            ADAMS LABORATORY, INC.
                                    d/b/a
                                    ADAMS RESPIRATORY THERAPEUTICS

By:                                 By:
   ---------------------------         ---------------------------

Its:                                Its:
    --------------------------          --------------------------

                                       28
<PAGE>
                                                                       EXHIBIT A

                        SPECIFICATIONS FOR DRUG PRODUCTS

                                       29
<PAGE>
                                                                       EXHIBIT B

                 TESTING PERFORMED BY CARDINAL ON DRUG PRODUCTS

                                       30
<PAGE>
                                                                       EXHIBIT C

                                      FEES

            Cardinal shall receive a portion of the Gross Profits of the sale of
the Drug Products as further described below:

            (i) "GROSS PROFITS (OR GP)" is defined as follows: Adams' Net Sales,
Less Cost of Goods and freight and other logistics costs.

                  "COST OF GOODS" means the fully burdened manufacturing costs
of Cardinal, determined using the same cost accounting methodology used by Adams
as set forth in the financial information referenced in the Asset Purchase
Agreement and, to the extent applicable, in accordance with GAAP, and shall
expressly include any costs associated with materials rendered obsolete due to a
change in Specifications including as provided for in Section 7.2. For the
avoidance of doubt, Cost of Goods shall also include the depreciation of the
cost of the Thomas Press purchased by Adams and paid for by Cardinal, over a
three year period beginning upon the date when the Thomas Press is put into
regular use for commercial production. To the extent that Cardinal utilizes one
of its Affiliates for manufacture or packaging of Drug Products under this
Agreement, Cardinal agrees that there shall be no inter-company mark-up included
in the Cost of Goods. The parties hereto agree that after the first Contract
Year a scrap materials rate shall be established and adjusted annually for each
Drug Product. After the first Contract Year, Cost of Goods shall not include
more than the scrap materials rate, except with respect to any materials that
are rendered obsolete due to a change in Specifications which shall be taken
into account in determining Cost of Goods.

                  "NET SALES" means the aggregate amount invoiced by Adams or
its Affiliates or any of its sublicensees to a Third Party distributor (who is
not a sublicensee), agent, contractor or end user for the sale of the Drug
Product LESS: (a) credits, refunds and allowances separately and actually
credited to customers for defective, spoiled, damaged, outdated, and returned
products, (b) offered and taken trade volume and cash discounts and rebates
(including coupons and government charge-backs) in amounts customary to the
trade, (c) sales, excise, value added, turnover, use, and other like taxes, and
customs duties, paid, absorbed or allowed excluding net income tax, to the
extent invoiced, and (d) the royalties payable to J-Med Pharmaceuticals, Inc.
("J-MED") for the AlleRx(TM) dose pack product ("ALLERX(TM)"). The amounts of
any deductions taken pursuant to clauses (a)-(d) shall be determined from books
and records maintained in accordance with GAAP, consistently applied. Net Sales
shall not include revenue received by Adams (or any of its Affiliates) from
transactions with an Affiliate, where the Drug Product in question will be
resold to an independent Third Party distributor, agent or end user by the
Affiliate where such revenue received by the Affiliate from such resale is
included in Net Sales.

            (ii) Gross Profits from all Drug Products shall be shared as set
forth below:

                                       31
<PAGE>
<TABLE>
<CAPTION>
Annual Gross Profit Tier              Adams' Share         Cardinal's Share
------------------------              ------------         ----------------
<C>                                   <C>                  <C>
$*                                          *%                  *%
$*                                          *%                  *%
$*                                          *%                  *%
$*                                          *%                  *%
$*                                          *%                  *%
$*                                          *%                  *%
$*                                          *%                  *%
Over $*                                     *%                  *%
</TABLE>

                  The above profit share percentages apply separately to each
Gross Profits Tier. For example, if the aggregate Gross Profits from all Drug
Products for a Contract Year are $*, then Adams would be entitled to *% of the
first $* (i.e., $*) of Gross Profit and to *% of the final $* (i.e., $*),
resulting in the Gross Profit being divided as follows: Adams would receive $*
and Cardinal would receive $*. For clarification, any royalties or similar
payments to Third Parties including in respect of intellectual property rights
or contractual obligations (excepting pre-existing royalties payable to J-Med on
AlleRx(TM)) shall be solely the responsibility of Adams and shall be payable
from Adams' share of the Gross Profits described above and shall not be included
in the calculation of Cost of Goods or Net Sales.

            (iii) Cardinal shall receive annual minimum payments (which are
fully creditable against Cardinal's share of Gross Profits) for each of the
first three Contract Years, as follows:

<TABLE>
<S>               <C>
Year 1            $4 million
Year 2            $3 million
Year 3            $3 million
</TABLE>

For interim billing purposes, Cardinal will bill Adams for each shipment of the
Drug Products in accordance with Cardinal's standard billing practices at Cost
of Goods (including a prorated portion of the charge for the Thomas Press)
multiplied by the following factors:

<TABLE>
<S>                        <C>
Year 1                     *%
Year 2                     *%
Year 3 and after           *%
</TABLE>

            (iv) At the end of each calendar quarter, a true-up calculation will
be made and the applicable party will be compensated for the shortfall or excess
difference between the required share of Gross Profit and what has been billed
to Adams, provided that if the amount billed to Adams exceeds the amount
properly required to be paid, the excess will be reflected as an adjustment on
invoices for the next period(s) rather than resulting in a refund payable to
Adams.

---------
*  Omitted information is the subject of a request for confidential treatment
   pursuant to Rule 406 under the Securities Act of 1933 and has been filed
   separately with the Securities and Exchange Commission.

                                       32
<PAGE>
            (v) It is understood that while the above amounts and percentages
are based on annual values, there will be adjustments to accommodate quarterly
profit share calculations and payments.

            (vi) Each party shall have the right to periodically engage a
mutually agreed independent accounting firm to audit the other party's records
for purposes of determining compliance with this Exhibit C.

            (vii) Cardinal shall supply Adams with samples of the Drug Products
(including D and DM) at a price equal to the Cost of Goods to manufacture such
samples provided that the volume of such samples provided by Cardinal does not
exceed * percent (*%) of the total volume of such Drug Product manufactured by
Cardinal under this Agreement on an annual basis (the "SAMPLE FLOOR"). The price
for any samples of such Drug Products that exceed the Sample Floor shall be an
amount equal to (a) * multiplied by (b) Cardinal's Cost of Goods to manufacture
such Drug Products. For clarification, the Drug Product constitutes a sample
only if it is conspicuously marked as such in accordance with the applicable
Specifications and is not marketed or sold by Adams, its Affiliates or
sublicenses for commercial sale.

                                       33

--------
* Omitted information is the subject of a request for confidential treatment
  pursuant to Rule 406 under the Securities Act of 1933 and has been
  filed separately with the Securities and Exchange Commission.
<PAGE>
                                                                       Exhibit D

                                QUALITY AGREEMENT

This Quality Agreement defines the duties of Cardinal Health PTS, LLC
("Cardinal") and Adams Laboratories, Inc. ("Adams") for the contract
pharmaceutical manufacture of those certain Products as defined in that certain
Supply Agreement dated April 1, 2004, by and between Cardinal and Adams
("Product"). In particular, this Quality Agreement clearly states who is
responsible for the cGMP aspects of manufacturing and specifies the way in which
the party releasing Product for sale ensures that the Product complies with the
approved Product Specifications (defined below) and the Marketing Authorizations
(defined below).

This Quality Agreement takes the form of a detailed checklist of all the
activities associated with pharmaceutical production, analysis, release, and
distribution. Responsibility for each activity is assigned to either Cardinal
Health PTS, LLC ("Cardinal") or Adams Laboratories, Inc. ("Adams") in the
appropriate box in the Delegation Responsibility Checklist that follows.

In order to provide better quality assurance, Cardinal Health PTS, LLC
("Cardinal") will perform the activities defined herein in accordance with
Standard Operating Procedures (defined below) to the extent that a Standard
Operating Procedure is applicable to such activity. In the event of a conflict
between the terms of this Quality Agreement and a Standard Operating Procedure,
the Standard Operating Procedure shall control.

This Agreement is subject to the terms of a supply, manufacturing or other
similar type of agreement between Cardinal Health PTS, LLC ("Cardinal") and
Adams Laboratories, Inc. ("Adams") ("Supply Agreement"). In the event of a
conflict between this Quality Agreement and the Supply Agreement, the Supply
Agreement shall control.

This Quality Agreement is intended to comply with the guidance and directives
set forth in (i) FDA Guidance for Industry, Cooperative Manufacturing
Arrangements for Licensed Biologics, August, 1999 and (ii) Commission Directive
91/356/EEC of 13 June 1991, laying down the principles and guidelines of good
manufacturing practice for medicine products for human use.

Adams Laboratories, Inc. ("Adams")        Cardinal Health PTS, LLC
                                          ("Cardinal")
14801 Sovereign Road                      14 Schoolhouse Road
Ft. Worth, Texas  76155                   Somerset, New Jersey  08873

Position:                                 Position:
            -------------------------                ---------------------------

Name:                                     Name:
            -------------------------                ---------------------------

Signature:                                Signature:
            -------------------------                ---------------------------

Date:                                     Date:
            -------------------------                ---------------------------
<PAGE>
Position:                                 Position:
            -------------------------                ---------------------------

Name:                                     Name:
            -------------------------                ---------------------------

Signature:                                Signature:
            -------------------------                ---------------------------

Date:                                     Date:
            -------------------------                ---------------------------

                                       2
<PAGE>
For purposes of this Quality Agreement, the following definitions shall apply:

A.    "API" shall mean the active pharmaceutical ingredient used in the
      manufacture of the Product as identified in the Specifications.

B.    "Applicable Laws" means all laws, ordinances, rules and regulations within
      the Territory applicable to the Processing of Product and the obligations
      of Cardinal Health PTS, LLC ("Cardinal") or Adams Laboratories, Inc.
      ("Adams"), as the context requires, including, without limitation, (i) all
      applicable federal, state and local laws and regulations of each
      Territory; (ii) the U.S. Federal Food, Drug and Cosmetic Act, and (iii)
      the "GMPs". Applicable Laws shall also include all laws, ordinances, rules
      and regulations applicable in Territories added to this Quality Agreement
      after the Effective Date of this Agreement, solely to the extent Adams
      Laboratories, Inc. ("Adams") or its designee has provided written copies
      of such laws to SP prior to SP's Processing Product under this Quality
      Agreement. Copies of all laws shall be in the English language.

C.    "Facilities" means any Cardinal Health PTS, LLC ("Cardinal") facilities.

D.    "FDA" shall mean the United States Food and Drug Administration, and any
      successor entity thereto.

E.    "GMPs" mean the current Good Manufacturing Practices for Finished
      Pharmaceuticals promulgated by the FDA, as amended from time to time. GMPs
      shall also include good manufacturing practice regulations promulgated by
      a Regulatory Authority in a Territory added to this Agreement after the
      Effective Date of this Quality Agreement, solely to the extent Adams or
      its designee has provided written copies of such regulations to Cardinal
      prior to Cardinal's Processing Product under this Quality Agreement.
      Copies of all laws shall be in the English language.

F.    "Marketing Application" shall mean an application for marketing
      authorization which has not yet been approved by the FDA or other
      Regulatory Authority, including without limitation, FDA New Drug
      Application, FDA Abbreviated New Drug Application, and other similar
      marketing applications promulgated by Regulatory Authorities.

G.    "Marketing Authorizations" shall mean any approved application for
      marketing authorization, including without limitation, FDA New Drug
      Application, FDA Abbreviated New Drug Application, and other similar
      marketing authorizations promulgated by Regulatory Authorities.

H.    "Process" or "Processing" means the sterile compounding, filling,
      producing and/or packaging of the Raw Materials into Product in accordance
      with the Specifications and the terms and conditions set forth in the
      Supply Agreement and this Quality Agreement.

I.    "Product" shall mean the Product identified on the first page of this
      Quality Agreement.

J.    "Regulatory Authority" shall mean the FDA and any other Regulatory
      Authority within a Territory involved in regulating any aspect of the
      development, manufacture, market approval, sale, distribution, packaging
      or use of the Product.

                                       3
<PAGE>
K.    "Specifications" means the procedures, requirements, standards, quality
      control testing, other data and scope of services set forth in the Supply
      Agreement.

L.    "Standard Operating Procedures" shall mean the standard operating
      procedures in effect at Cardinal Health PTS, LLC ("Cardinal") that have
      been approved by Cardinal Health PTS, LLC ("Cardinal") Quality Assurance
      department and that are applicable to the Processing.

M.    "Territories" shall mean the United States of America and any other
      country that the parties agree in writing to add to this Quality Agreement
      from time to time.

                       RESPONSIBILITY DELEGATION CHECKLIST

<TABLE>
<CAPTION>
                             RESPONSIBILITIES                         ADAMS        CARDINAL
                                                                   LABORATORIES,    HEALTH
                                                                       INC.        PTS, LLC
                                                                    ("ADAMS")     ("CARDINAL")
----------------------------------------------------------------------------------------------
<S>                                                                <C>            <C>
1.      REGULATORY AUTHORIZATIONS & GMP COMPLIANCE

1.1     Will maintain all licenses, registrations and other                          X
        authorizations as are required to operate a GMP
        pharmaceutical manufacturing facility under the
        Applicable Laws.

1.2     Will maintain and operate the Facility in compliance with                    X
        the GMPs and all other Applicable Laws.

1.3     Will Process the Product in accordance with approved                         X
        manufacturing batch records, the GMPs and all other
        Applicable Laws.

1.4     Will prepare, maintain and update the Marketing                 X
        Authorizations in accordance with all Applicable Laws.

1.5     Will provide Cardinal Health PTS, LLC ("Cardinal") with         X
        copies of those portions of the Marketing Applications
        that are applicable to the Processing prior to submission
        of such Marketing Applications to the applicable
        Regulatory Authority.

1.6     Will provide Cardinal Health PTS, LLC ("Cardinal") with         X
        copies of those portions of the approved Marketing
        Authorizations that are applicable to the Processing.

1.7     Will meet all drug listing filing requirements for all                       X
        Product and packaging configurations processed at the
        Facilities.

1.8     Is not debarred under the U.S. Generic Drug Enforcement                      X
        Act of 1992 and does not employ or use the services of
        any individual who is debarred or who has engaged in
        activities that could lead to being debarred.

1.9     Will prepare and submit post-marketing annual reports to        X
        the FDA and the other Regulatory Authorities in
        accordance with Applicable Laws.
</TABLE>

                                4
<PAGE>
<TABLE>
<CAPTION>
                             RESPONSIBILITIES                         ADAMS        CARDINAL
                                                                   LABORATORIES,    HEALTH
                                                                       INC.        PTS, LLC
                                                                    ("ADAMS")     ("CARDINAL")
----------------------------------------------------------------------------------------------
<S>                                                                <C>            <C>
1.10    Will provide Adams Laboratories, Inc. ("Adams") with the                     X
        following information to be included in the post
        marketing annual report:

        -   Stability data for the Product in accordance with the
            applicable stability protocol, including any
            non-conforming data.

        -   Other information that may be required.

        -   Change control information for all changes implemented
            during the preceding year.

2.      REGULATORY ACTIONS & INSPECTIONS

2.1     Will promptly notify Adams Laboratories, Inc. ("Adams")                      X
        of any FDA or other Regulatory Authority notice of
        inspection or inspection of the Facilities directly
        relating to the Product.

2.2     Will promptly notify the other party of any FDA or other        X            X
        Regulatory Authority investigation relating to the
        Product.

2.3     Will provide copies of any FDA Form 483s, Warning Letters                    X
        or the like from applicable Regulatory Authorities within
        48 hours of receipt and subsequent response(s) relating
        to the Product.

2.4     Will promptly notify the other party of any Regulatory          X            X
        Authority request for Product samples or Product batch
        records.

2.5     Will notify the other party of any requests for                 X            X
        information, notices of violations or other communication
        from a Regulatory Authority relating to environmental,
        occupational health and safety compliance, relating
        directly to the Product.

3.      COMPLIANCE OF SPECIFICATIONS WITH MARKETING AUTHORIZATIONS
        & CHANGE CONTROL

3.1     Will ensure that all Specifications contained in the            X            X

        Supply Agreement and master batch record comply with the
        Marketing Authorizations, as amended from time to time,
        and will certify such in writing to the other party.

3.2     Will submit any proposed changes to the Specifications to       X            X
        the other party for review and approval, prior to the
        implementation of such changes and the submission of any
        such changes to the Regulatory Authorities.

3.3     Will notify Adams Laboratories, Inc. ("Adams") of any                        X
        proposed changes to the Facilities or the Processing that
        may impact the Product.

3.4     Will act as liaison with Regulatory Authorities for the         X
        approval, maintenance and updating of Product
        Specifications in the Marketing Authorizations.
</TABLE>

                                5
<PAGE>
<TABLE>
<CAPTION>
                             RESPONSIBILITIES                         ADAMS        CARDINAL
                                                                   LABORATORIES,    HEALTH
                                                                       INC.        PTS, LLC
                                                                    ("ADAMS")     ("CARDINAL")
----------------------------------------------------------------------------------------------
<S>                                                                <C>            <C>
4.      MATERIALS

4.1     Will be responsible for maintenance of Specifications,                       X
        procurement, storage, sampling and testing and release of
        the API.

4.2     Will be responsible for retaining reference samples of                       X
        active ingredient(s), including samples for periodic
        re-tests, for three years beyond product expiry date.

4.3     Will perform identification testing of API.                                  X

4.4     Will be responsible for maintenance of Specifications,                       X
        procurement, storage, sampling, testing and release of
        raw materials.

4.5     Will qualify raw material suppliers providing raw               X            X
        materials used in the Product to ensure full compliance
        with GMPs and Applicable Laws.

4.6     Will store API and raw materials in accordance with the                      X
        Specifications while at the Facilities.

4.7     Retains reference samples of raw materials, including                        X
        samples of periodic re-tests, for one year beyond product
        expiry date.

4.8     Will dispose of product waste and any special waste                          X
        related to the Processing of the Product.

5.      PRODUCTION & VALIDATIONS

5.1     Will approve process validation protocols and receive           X
        copies of completed validation reports.

5.2     Will be responsible for maintenance, qualifications and                      X
        validation of the Facility, equipment, and processes
        associated with Processing the Product.

5.3     Will manufacture and test the Product at the Facilities                      X
        in accordance with the Product master batch record, the
        Standard Operating Procedures referenced therein, and the
        Specifications.

5.4     Will be responsible for visual inspection of finished                        X
        Product.

5.5     Will be responsible for labeling Product in accordance                       X
        with the Specifications, and applicable portions of 21
        CFR 610.60 through 610.65.

5.6     Will be responsible to prepare and approve all artwork,         X
        inserts, labeling and packaging.

5.7     Will be responsible for packaging Product in accordance                      X
        with the Specifications.
</TABLE>

                                6
<PAGE>
<TABLE>
<CAPTION>
                             RESPONSIBILITIES                         ADAMS        CARDINAL
                                                                   LABORATORIES,    HEALTH
                                                                       INC.        PTS, LLC
                                                                    ("ADAMS")     ("CARDINAL")
----------------------------------------------------------------------------------------------
<S>                                                                <C>            <C>
5.8     Will review and approve the original Master Batch Record        X            X
        for each Product.

        Will review and approve Change Control Documents for            X            X
        batch records.

        Will review and approve Change Control Documents for            X            X
        SOPs that are in the NDA.

5.9     Will be responsible for testing Product and supplying a                      X
        Certificate of Analysis to the other party.

5.10    Will be responsible to release Product to the Market in         X
        accordance with the Product Specification.

5.11    Is responsible for investigating, resolving and                              X
        documenting all adverse events and deviations from the
        master batch record and Specifications.

5.12    Will review and approve major deviation reports.                X            X

6.      Audits

6.1     Will be entitled to conduct one quality audit of Cardinal       X
        Health PTS, LLC ("Cardinal") per calendar year to evaluate
        quality control and testing processes.

6.2     Will conduct internal audits of quality control and                          X
        testing processes, in accordance with the GMPs and
        applicable Standard Operating Procedures.

7.      LOT CODES & EXPIRATION DATING

7.1     Will assign Product Lot Code.                                                X

7.2     Will assign Expiration Date according to the procedure                       X
        provided by Adams.

8.      SAMPLES

8.1     Will be responsible for Product sampling in accordance                       X
        with GMPs and Applicable Laws and as otherwise agreed to
        by the parties in the master batch record for the Product.

8.2     Will retain finished Product samples in accordance with                      X
        Applicable Laws.

8.3     Will retain stability samples in accordance with                             X
        Applicable Laws.
</TABLE>

                                7
<PAGE>
<TABLE>
<CAPTION>
                             RESPONSIBILITIES                         ADAMS        CARDINAL
                                                                   LABORATORIES,    HEALTH
                                                                       INC.        PTS, LLC
                                                                    ("ADAMS")     ("CARDINAL")
----------------------------------------------------------------------------------------------
<S>                                                                <C>            <C>
9.      TESTING & ANALYSIS

9.1     Will perform product stability testing according to                          X
        Supply Agreement, Product Specifications and applicable
        Cardinal Health PTS, LLC ("Cardinal") protocols.

9.2     Will investigate all out-of-Specification test results                       X
        ("OOS") and provide documentation relating to such
        investigations with the batch record applicable to the
        batch containing the OOS test result.

9.3     Will promptly notify the other party of any recall and/or       X            X
        confirmed stability failure of the Product that might be
        attributed to Processing the Product.

10.     RELEASE

10.1    Will be responsible for final release of Product.               X

11.     RECORDS

11.1    Will provide the released batch record documentation for                     X
        each batch of Product, which shall include the following:

        -   A statement that the lot was manufactured, packaged
            and tested in accordance with cGMPs, identifies the
            master batch record documents, and lists any incident
            reports and investigations associated with the batch.

        -   A certificate of analysis covering all Regulatory
            Authority and compendial tests.

        -   The signature of the QA Representative who released
            the batch.

        -   A copy of the batch record.

        -   The Cardinal Batch Release form.

11.2    Will store the master record, batch records and all other                    X
        documentation related to the Product for the minimum
        period required by all Applicable Laws.

11.3    Will provide copies of all documentation necessary for          X            X
        the other party to respond to inquiries by Regulatory
        Authorities.

12.     STORAGE

12.1    Will store the API at the facilities in accordance with                      X
        the API Specifications until manufacture of the Product.

12.2    Will store the finished Product in accordance with the                       X
        Specifications pending release of the Product.
</TABLE>

                                8
<PAGE>
<TABLE>
<CAPTION>
                             RESPONSIBILITIES                         ADAMS        CARDINAL
                                                                   LABORATORIES,    HEALTH
                                                                       INC.        PTS, LLC
                                                                    ("ADAMS")     ("CARDINAL")
----------------------------------------------------------------------------------------------
<S>                                                                <C>            <C>
12.3    Responsible to ensure storage of the Product in                 X
        accordance with the Specifications following delivery of
        such Product to Adams Laboratories, Inc.

13.     SAFETY

13.1    Will maintain safety/hazard and handling data on the                         X
        Product and API.

13.2    Will maintain safety/hazard and handling data on the raw                     X
        materials.

13.3    Will provide safety/hazard and handling data for new            X
        products and materials.

14.     COMPLAINTS

14.1    Will assist Adams Laboratories, Inc. ("Adams") in                            X
        investigating and resolving all medical and non-medical
        product complaints.

14.2    Will provide Adams Laboratories, Inc. ("Adams") with any                     X
        information relating to the Processing of the Product
        that is necessary to address a Product complaint or
        adverse drug event.

14.3    Will collect and log all information relating to                X
        complaints and adverse drug events.

14.4    Will investigate all complaints and adverse drug events.        X

14.5    Will issue all reports and follow up corrective action          X
        relating to complaints and adverse drug events.

15.     RECALL, FIELD ALERTS AND PRODUCT WITHDRAWAL

15.1    Responsible for decision to initiate recall or Product          X
        withdrawal.

15.2    Communicates decision to initiate recall to Cardinal            X
        Health PTS, LLC ("Cardinal").

15.3    Responsible for notification of recall or Product               X
        withdrawal to appropriate regulatory agencies.

15.4    Responsible for management of recall or Product                 X
        withdrawal.
        Responsible for reconciliation of returned Product              X
        following recall or Product Withdrawal.
15.5    Will issue and follow up on FDA Field Alerts.                   X

15.6    Will provide copies of the CMC section of the NDAs and          X
        Annual Reports.
</TABLE>

                                9
<PAGE>
                                                                       Exhibit E

                      SUBLEASE AGREEMENT AND LESSOR CONSENT

      AGREEMENT OF SUBLEASE AND LESSOR CONSENT (this "SUBLEASE AGREEMENT") made
as of the 1st day of April, 2004 by and among Adams Laboratories, Inc., a Texas
corporation d/b/a Adams Respiratory Therapeutics (the "SUBLESSEE"), Cardinal
Health PTS, LLC, a Delaware limited liability company (the "SUBLESSOR"), and The
Estate of James Campbell, Deceased ("LESSOR").

                              W I T N E S S E T H:

      WHEREAS, CCP Investment Properties, Ltd., a Texas limited partnership
("ORIGINAL LANDLORD") and Sublessee have previously executed a document entitled
"Industrial Lease Agreement" (as amended as described below, the "LEASE") with
regard to 71,108 square feet of lease space currently occupied by Sublessor
located at 14801 Sovereign Road, Fort Worth, Texas (the "ORIGINAL PREMISES");
and

      WHEREAS, Original Landlord and Sublessee previously executed a document
entitled "Amendment to Industrial Lease Agreement" dated October 29, 1990, and
AEW # 14 Corporation, as successor landlord, and Sublessee executed a document
entitled "Second Amendment to Industrial Lease Agreement" dated March 15, 1991,
both of said amendments relating to the security deposit due under the terms of
the Lease; and

      WHEREAS, Metropolitan Life Insurance Company, as successor landlord
("METROPOLITAN"), and Sublessee executed a document entitled "Third Amendment to
Industrial Lease Agreement" dated January 27, 1993 (the "THIRD AMENDMENT") which
amendment added 36,020 square feet of "Expansion Premises" to the Original
Premises; and

      WHEREAS, Metropolitan and Sublessee executed a document entitled "Fourth
Amendment to Industrial Lease Agreement" dated July 27, 1993 (the "FOURTH
AMENDMENT"), which amendment added 3,000 square feet of "Second Expansion Space"
to the Original Premises so that the premises covered by the Lease, as amended
by the Third Amendment and the Fourth Amendment, totaled a sum of 110,128 square
feet; and

      WHEREAS, Metropolitan and Sublessee executed a document entitled "Fifth
Amendment to Industrial Lease Agreement" on January 19, 1995 (the "FIFTH
AMENDMENT") which amendment added 36,020 square feet of "Third Expansion Space"
to the Premises; and

      WHEREAS, Metropolitan and Medeva Pharmaceuticals, Inc. ("MEDEVA"), as
successor to Adams Laboratories, Inc., and Adams Laboratories, Inc., an entity
then-new to the Lease and now being Sublessee, executed a document entitled
"Partial Assignment and Sixth Amendment to Industrial Lease Agreement" dated
February 25, 1998, by which document, among other matters, 1) Sublessee assumed
the terms of the Lease as to the Premises as contemplated by the Fourth
Amendment, 2) Medeva remained tenant
<PAGE>
under the Lease as to the 36,020 of "Third Expansion Space" as discussed in the
Fifth Amendment, and as to which space the Lease has terminated, and 3) the
Lease Term was extended so as to terminate on January 31, 2006 (Terms used and
not otherwise defined herein shall have the meaning ascribed to them in the
Lease); and

      WHEREAS, Sublessee and Lessor agreed in a document entitled "Seventh
Amendment to Industrial Lease Agreement" dated June 1, 2002 (the "SEVENTH
AMENDMENT") that the Third Expansion Space was no longer subject to the terms of
the Lease and to add 20,000 square feet to the Premises, so that as of June 1,
2002 the Premises consisted of 130,128 square feet (the "PREMISES"); and

      WHEREAS, pursuant to an Assignment and Assumption Agreement and Lessor
Consent dated March 24, 2004, Sublessee assigned all of its rights and
obligations under the Lease to Sublessor and Sublessor assumed all of such
obligations; and

      WHEREAS, Sublessee desires to sublease from Sublessor approximately 7,500
square feet of space in the Building plus approximately 1,040 square feet or
warehouse space and Sublessor desires to sublease such space to Sublessee; and

      WHEREAS, Lessor desires to consent to such sublease.

      NOW, THEREFOR, in consideration of the premises, which are incorporated
herein by reference, and of the terms, conditions and covenants set forth herein
and other good and valuable consideration, the receipt and adequacy of which are
hereby acknowledged, the parties hereto, intending to be legally bound, hereby
agree as follows:

      1. Subleased Premises. Sublessor hereby sublets to Sublessee, and
Sublessee hereby subleases from Sublessor, approximately 8,540 square feet of
209,088 space located at 14801 Sovereign Road, Fort Worth, Texas (the "SUBLEASED
PREMISES"), as further described on EXHIBIT A, attached hereto and incorporated
herein by reference.

      2.    Term of Sublease.

            The initial term (the "TERM") of this Sublease Agreement shall
commence on April 1, 2004 (the "COMMENCEMENT DATE"), and shall end on the
earliest to occur of: (i) January 31, 2006; or (ii) the date of termination
under that certain Supply Agreement dated of even date herewith between
Sublessor and Sublessee; or (iii) the date on which Sublessor discontinues
manufacturing operations in the Premises under the Lease. If the Commencement
Date is a date other than the first day of a calendar month or if this Sublease
Agreement terminates on a date other than the last day of a calendar month, then
the monthly payments of rent due hereunder for such month or months shall be
prorated based on the number of days in such month that occur during the Term.
Possession of the Subleased Premises shall be delivered to Sublessee on the
Commencement Date.

                                       2
<PAGE>
      3.    The Lease.

            (a) Sublessor represents and warrants that it has full right, power
and authority under the Lease to enter into this Sublease Agreement, subject to
Lessor's consent.

            (b) Except for Paragraphs 2, 3(d), 3(e), 5, 9, (proviso at the end
of the fourth sentence), 10 (except the last paragraph of Paragraph 10, which is
incorporated) 14, the third, fourth and fifth paragraphs of Paragraph 15,
Paragraphs 26, 31, 41, 42, 43 and 44, and Exhibits B, B-1 and C of the Lease,
and to the extent not otherwise inconsistent with the agreements expressed in
this Sublease Agreement or applicable only to the original parties to the Lease,
the terms, provisions, covenants and conditions of the Lease are hereby
incorporated herein by reference, modified by the terms of this Sublease or
otherwise as appropriate in the circumstances so as to make such incorporated
terms, provisions, covenants and conditions applicable only to the subleasing
hereunder by Sublessee of the Subleased Premises. For the avoidance of doubt and
in furtherance of the foregoing: (i) Sublessor shall perform its covenants and
obligations under the Lease which do not require for their performance
possession of the Subleased Premises (including, without limitation, the
obligation to maintain in full force and effect all insurance required of
Sublessor as "tenant" under the Lease) and which are not otherwise to be
performed by Sublessee on behalf of Sublessor; and (ii) Sublessee shall perform
all affirmative covenants, and shall refrain from performing any act which is
prohibited by the negative covenants, of the Lease, where the obligation to
perform or refrain from performing is by its nature imposed upon the party in
possession of the Subleased Premises. Subject to the foregoing, Sublessee shall
be subject to, bound by and comply with all of said terms, provisions, covenants
and conditions of the Lease with respect to the Subleased Premises, shall
satisfy same in accordance with the Lease in favor and for the benefit of both
Sublessor and Lessor, and shall not do, suffer or permit anything to be done
which might result in an event of default under the Lease or cause the Lease to
be terminated or forfeited, it being understood and agreed that wherever in the
Lease the word "Tenant" appears, for the purposes of this Sublease Agreement the
word "Sublessee" shall be substituted, and wherever in the Lease the word
"Landlord" appears, for the purposes of this Sublease Agreement, the word
"Lessor" (and, as applicable hereunder, "Sublessor") shall be substituted; that
Sublessor shall have and may exercise all rights and remedies granted to Lessor
by the Lease; and that, without limitation of the foregoing or any other rights
and remedies Sublessor has or may have, upon the breach of any of said terms,
provisions, conditions or covenants of the Lease by Sublessee or upon the
failure of Sublessee to pay Rent or comply with any of the terms, provisions,
conditions or covenants of this Sublease Agreement, Sublessor may exercise any
and all rights and remedies granted to Lessor by the Lease. In the event of any
conflict between this Sublease Agreement and the Lease, the terms of this
Sublease Agreement shall control (unless such conflict would cause a default
under the Lease). Whenever the provisions of the Lease incorporated as
provisions of this Sublease Agreement require the written consent of Lessor,
said provisions shall be construed to require the written consent of both Lessor
and Sublessor. Sublessee hereby acknowledges that it has read and is familiar
with all the terms of the Lease, and agrees that this Sublease Agreement is

                                       3
<PAGE>
subordinate and subject to the Lease and that any termination thereof shall
likewise terminate this Sublease Agreement. In addition to the foregoing:

            (a) The exculpation and release of Sublessor and the indemnity in
favor of Sublessor and Sublessor's agents and employees in Paragraph 11 of the
Lease include, and Sublessor shall not be liable to Sublessee for, any injury,
damage, loss, liability, claims, suits, costs, and expenses that would otherwise
be covered by such Paragraph 11, EVEN IF THE FOREGOING RESULT FROM AND/OR ARE
CAUSED IN PART OR WHOLE BY THE NEGLIGENCE (BUT NOT THE GROSS NEGLIGENCE OR
WILLFUL MISCONDUCT) OF SUBLESSOR.

            (b)  Sublessee does not require a Non-Disturbance Agreement
pursuant to Paragraph 12 of the Lease.

            (c) The exculpation and release of Sublessor in Paragraph 19(c) of
the Lease includes, and Sublessor shall not be liable to Sublessee for, any
damages that would otherwise be covered by such Paragraph 19(c), EVEN IF THE
FOREGOING RESULT FROM AND/OR CAUSED IN PART OR WHOLE BY THE NEGLIGENCE (BUT NOT
THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT) OF SUBLESSOR.

            (d) The waiver of claims and subrogation in Paragraph 24 of the
Lease include any rights of recovery, claim, action or cause of action that
would otherwise be covered by such Paragraph 24, EVEN IF THE FOREGOING RESULT
FROM AND/OR ARE CAUSED IN PART OR WHOLE BY THE NEGLIGENCE (BUT NOT THE GROSS
NEGLIGENCE OR WILLFUL MISCONDUCT) OF THE PARTY (PARTIES) BENEFITING FROM
PARAGRAPH 24.

            (e) It shall be the obligation of Lessor (i) to provide or cause to
be provided all services to be provided by Lessor under the terms of the Lease
and (ii) to satisfy all obligations and covenants of Lessor made in the Lease.
Sublessee acknowledges that Sublessor shall be under no obligation to provide
any such services or satisfy any such obligations or covenants, subject to
Section 4(c) below.

            (f) Sublessee's obligations with respect to maintenance, repair, and
replacement (including, without limitation, those arising pursuant to Section
8(b) of the Lease, as incorporated herein) shall be limited to those items
located on the interior of the Subleased Premises only, and shall specifically
exclude, without limitation, those components of building-wide systems that are
located within the Subleased Premises but which also serve the remaining
portions of the Premises under the Lease.

      4.    Occupancy.

            (a) Sublessee shall use and occupy the Subleased Premises in
accordance with the uses set forth in Section 1(g) of the Lease. Sublessee has
conducted an inspection, or been afforded the opportunity to inspect, the
Subleased Premises and

                                       4
<PAGE>
shall accept the Subleased Premises "AS IS," "WHERE IS," and "WITH ALL FAULTS"
and without any representation or warranty of suitability or habitability or of
any other kind. Sublessor is not required to make any repairs or alterations to
prepare the Subleased Premises for Sublessee's occupancy.

            (b) Subject to Section 3(b) hereof, Sublessee covenants that it will
occupy the Subleased Premises in accordance with the terms of the Lease and will
not suffer to be done or omit to do any act that may result in a violation of or
a default under any of the terms and conditions of the Lease, or render
Sublessor liable for any charge or expense arising out of, by reason of, or
resulting from, Sublessee's failure to perform or observe any of the terms and
conditions of the Lease pertaining to the Subleased Premises. Subject to Section
3(b) hereof, Sublessor covenants and agrees that it will timely pay all rent and
other sums due under the Lease, and will not otherwise suffer to be done or omit
to do any act that may result in a violation of or a default under any of the
terms and conditions of the Lease.

            (c) Sublessee agrees that Sublessor shall not be required to perform
any of the covenants or obligations of Lessor under the Lease and, insofar as
any of the covenants and obligations of Sublessor hereunder are required to be
performed under the Lease by Lessor thereunder, Sublessee acknowledges that
Sublessor shall be entitled to look to Lessor for such performance. Sublessor
hereby grants to Sublessee the right to receive all of the services and benefits
with respect to the Subleased Premises which are to be provided by Lessor under
the Lease. Any default or failure of performance by Lessor shall not affect this
Sublease Agreement or waive or defer any of Sublessee's obligations hereunder,
except to the extent that such default or failure of such performance excuses
Sublessor's performance under the Lease; provided, however, that in the event of
any such default or failure of performance by Lessor, Sublessor shall take such
action as may reasonably be required, under the circumstances, to secure such
performance upon Sublessee's written request therefor and at Sublessee's cost
and expense.

            (d) Sublessor shall not agree to an amendment to the Lease which
would have a material adverse effect on Sublessee's occupancy of the Subleased
Premises or its use of the Subleased Premises for their intended purposes as of
the effective date of this sublease, unless Sublessor shall first obtain
Sublessee's prior written approval thereof, which approval shall not be
unreasonably withheld or delayed.

      5.    Rent.

            (a) Sublessee shall pay to Sublessor as Basic Rental as for the
Subleased Premises during the Term of this Sublease Agreement the amount set
forth below:

<TABLE>
<CAPTION>
            Period                                 Monthly Rent
            ------                                 ------------
<S>                                                <C>
            Commencement Date to Expiration        $6,118.13
</TABLE>

                                       5
<PAGE>
      In addition to the Basic Rental, Sublessee shall also pay to Sublessor all
Additional Rent payable by Sublessor under the Lease including self insurance
costs, to the extent allocable to the Subleased Premises. For purposes of
calculating such Additional Rent, Sublessee's "proportionate share" shall be a
fraction, the numerator of which is the space contained in the Subleased
Premises (8,540 square feet as of the Commencement Date) and the denominator of
which is the entire space contained in the Building (209,088 square feet).

      The respective amounts set forth above shall be paid on or before the 1st
day of each month of the Term. If Sublessee fails or refuses to pay any
installment of Basic Rental within five (5) business days after the date such
installment is due, or Additional Rent within fifteen (15) business days after
Sublessee's receipt of written demand therefor, Sublessor shall be entitled to
collect a late charge equal to five percent (5%) multiplied by the amount of the
late payment to compensate Sublessor for the additional expense involved in
handling delinquent payments and not as interest. If the payment of a late
charge required by this Section is found to constitute interest notwithstanding
the contrary intention of Sublessor and Sublessee, the late charge shall be
limited to the maximum amount of interest that lawfully may be collected by
Sublessor under applicable law, and if any payment is determined to exceed such
lawful amount, the excess shall be applied to any unpaid rent then due and
payable hereunder and/or credited against the next succeeding installment of
rent payable hereunder. If all rent payable hereunder has been paid in full, any
excess shall be refunded to Sublessee.

            (b)    Intentionally Deleted.

      6. Sublessor Rights and Obligations. Upon reasonable advance notice,
Sublessor shall be granted access to the Subleased Premises at all times.
Sublessor shall not unreasonably interfere with Sublessee's operations in the
Subleased Premises in connection with any such access.

      7. Sublessee Rights and Obligations. Sublessee shall be obligated to
provide the insurance required under the Lease as it relates to the Subleased
Premises and shall name the Sublessor and Lessor as additional insureds under
its policies. Sublessee is obligated to provide proof of such insurance to
Sublessor on or before the Commencement Date and upon request at any time during
the Term (but not more frequently than annually). Sublessee acknowledges that
Sublessor will not provide insurance for the Subleased Premises, unless a
failure to so provide such insurance would result in a default under the Lease.

      8. Casualty, Condemnation and/or Termination. If the whole or any part of
the Subleased Premises shall be taken or condemned in any manner by any
competent authority for any public or quasi-public use, or if the Lessor under
the Lease shall terminate the Lease as provided in the Lease by reason of
casualty or otherwise as permitted therein, in any such event, the term of this
Sublease Agreement shall cease and terminate as of the date of vesting of title
or such condemnation or termination, as the case may be. If the Lease is not
terminated as a result of any casualty loss and Sublessor

                                       6
<PAGE>
is entitled under the Lease to a rent abatement or other concession as a result
thereof, then Sublessee shall be entitled to Sublessee's "proportionate share"
of such abatement or concession unless the effect on the Subleased Premises of
such casualty loss shall be substantially disproportionate to the amount of such
abatement or concession, in which event the parties shall equitably adjust the
abatement or concession as between themselves, based upon the relative impact of
the casualty loss.

      9. No Assignment or Subletting. Sublessee, for itself, its successors and
assigns, expressly covenants that it shall not assign, mortgage or encumber this
Sublease Agreement, or sublet, or suffer or permit the Subleased Premises or any
part thereof to be used by others except as provided under the Lease, without
the prior written consent of Lessor and Sublessor.

      10. Quiet Enjoyment. Sublessor covenants and agrees with Sublessee that,
provided Sublessee pays and performs all of its covenants, agreements and
obligations under this Sublease Agreement, Sublessee may peaceably and quietly
enjoy the Subleased Premises, subject, nevertheless, to the terms and conditions
of this Sublease Agreement and the Lease.

      11. Sublessor. The term "Sublessor" as used in this Sublease Agreement
refers to the Tenant under the Lease at the time in question, so that if the
Lease shall be assigned, such covenants, conditions and agreements shall be
binding upon each successor assignee.

      12.   Indemnity.

            (a) Sublessee shall indemnify and hold Sublessor harmless from and
against any all claims and liabilities arising from Sublessee's improvements to
and use of the Subleased Premises, and from the conduct of Sublessee's business
and from any activity, work or thing done, suffered or permitted by Sublessee in
or about the Subleased Premises and shall further indemnify and hold Sublessor
harmless from and against any and all claims and liabilities arising from any
breach or default in the performance of any obligation on Sublessee's part to be
performed under the terms of this Sublease Agreement, or arising from any
negligence of Sublessee, or any of Sublessee's agents, and from and against any
and all costs, attorney's fees, expenses and liabilities incurred in the defense
of any such claim or any action or proceeding brought thereon. If any action or
proceeding is brought against Sublessor by reason of any such claim, Sublessee,
upon notice from Sublessor, shall defend the same at Sublessee's expense
utilizing counsel reasonably satisfactory to Sublessor. Sublessee, as a material
part of the consideration hereunder to Sublessor, hereby assumes all risk of
damage to property or injury to persons, in, upon or about the Subleased
Premises arising from any cause (INCLUDING THE NEGLIGENCE OF SUBLESSOR AND
EXCLUDING ONLY THE GROSS NEGLIGENCE OF SUBLESSOR) and Sublessee hereby waives
all claims in respect thereof against Sublessor. The foregoing agreement to
indemnify and hold harmless Sublessor from and against claims and liabilities
includes any such claims and liabilities asserted by Lessor against Sublessor.

                                       7
<PAGE>
            (b) Sublessor shall indemnify and hold Sublessee harmless from and
against any all claims and liabilities arising from the conduct of Sublessor's
business and from any activity, work or thing done, suffered or permitted by
Sublessor in or about the Premises under the Lease (but excluding the Subleased
Premises) and shall further indemnify and hold Sublessee harmless from and
against any and all claims and liabilities arising from any breach or default in
the performance of any obligation on Sublessor's part to be performed under the
terms of this Sublease Agreement or the Lease, or arising from any negligence of
Sublessor, or any of Sublessor's agents, and from and against any and all costs,
attorney's fees, expenses and liabilities incurred in the defense of any such
claim or any action or proceeding brought thereon. If any action or proceeding
is brought against Sublessee by reason of any such claim, Sublessor, upon notice
from Sublessee, shall defend the same at Sublessor's expense utilizing counsel
reasonably satisfactory to Sublessee. Sublessor, as a material part of the
consideration hereunder to Sublessee, hereby assumes all risk of damage to
property or injury to persons, in, upon or about the Premises under the Lease
(but excluding the Subleased Premises) arising from any cause (INCLUDING THE
NEGLIGENCE OF SUBLESSEE AND EXCLUDING ONLY THE GROSS NEGLIGENCE OF SUBLESSEE)
and Sublessor hereby waives all claims in respect thereof against Sublessee. The
foregoing agreement to indemnify and hold harmless Sublessee from and against
claims and liabilities includes any such claims and liabilities asserted by
Lessor against Sublessee.

      13. Broker's Commission. Each party represents to the other that it has
not dealt with any brokers in connection with this transaction, and each
representing party will indemnify the other party and hold such other party
harmless from and against any and all claims of any broker with respect to a
commission or fee in connection with this Sublease Agreement who purports to
have acted with or on behalf of the indemnifying party.

      14. Miscellaneous Costs. Sublessee shall reimburse Sublessor for the legal
and other expenses incurred by Lessor in connection with the review of this
Sublease Agreement within thirty (30) days of receipt of an invoice therefor.

      15. Attorney's Fees. If Sublessor, or Sublessee shall commence an action
against the other arising out of or in connection with this Sublease Agreement,
the prevailing party shall be entitled to recover its costs of suit and
reasonable attorney's fees.

      16. Consent of Lessor Under Lease. Lessor hereby consents to this Sublease
Agreement. Lessor's consent shall be deemed to evidence Lessor's agreement that
Sublessee shall be entitled to the benefit of any waiver of claims and waiver of
subrogation rights for damage to Lessor's property contained within the Lease
for the benefit of Sublessor, to the same extent as if such waivers were
originally made in favor of Sublessee.

                                       8
<PAGE>
      17. Notices. Any and all notices that are or may be required to be given
pursuant to the terms of this Sublease Agreement or the Lease shall be sent by
Certified Mail, Return Receipt Requested or overnight courier service to the
parties hereto at their respective addresses set forth below. Any notice given
pursuant to this Sublease Agreement shall be in writing and will be deemed given
to a party when (a) received or rejected by addressee, if sent by Certified
Mail, Return Receipt Requested or (b) the next business day following deposit
with a nationally recognized overnight courier service.

            SUBLESSOR:                         SUBLESSEE:

            Cardinal Health PTS, LLC           Adams Laboratories, Inc. d/b/a
            14 School House Road               Adams Respiratory Therapeutics
            Somerset, NJ 08873                 409 Main Street
            Telecopier: 732-537-6491           Chester, NJ 07930
            Attention:  Legal Department       Telecopier No: (908)
            879-9784

                                               LESSOR:

                                               The Estate of James Campbell
                                               c/o_______________________

      18. Binding Effect. The covenants, conditions and agreements contained
herein shall be binding upon and inure to the benefit of Sublessor and Sublessee
and their respective heirs, executors, administrators, successors and permitted
assigns.

      19. Governing Law. This Sublease Agreement is entered into in the State of
Texas, and its validity and interpretation shall be construed in accordance with
the laws of that State.

                                       9
<PAGE>
      IN WITNESS WHEREOF, Sublessor, Sublessee and Lessor have each caused this
Sublease Agreement to be executed by its duly authorized partner or officer and
the appropriate corporate seals have been hereunto affixed all as of the day and
year first written.

                                             SUBLESSOR:

ATTEST:                                      CARDINAL HEALTH PTS, LLC

By:  __________________ [Corporate Seal]     By:  ____________________ (Seal)

Its:  __________________                     Its:  ____________________

                                             SUBLESSEE:

ATTEST:                                      ADAMS LABORATORIES, INC., D/B/A
                                             ADAMS RESPIRATORY THERAPEUTICS

By:  __________________ [Corporate Seal]     By:  ____________________ (Seal)

Its:  __________________                     Its:  ____________________

                                             LESSOR:

ATTEST:                                      THE ESTATE OF JAMES CAMPBELL,
                                             DECEASED

By:  __________________ [Seal]               By:  ____________________ (Seal)

Its:  __________________                     Its:  ____________________

                                       10
<PAGE>
                                                                       Exhibit F

                          TRANSITION SERVICES AGREEMENT

      THIS TRANSITION SERVICES AGREEMENT (the "AGREEMENT") is made and entered
into as of April 1, 2004 (the "EFFECTIVE DATE") by and between Adams
Laboratories, Inc., a Texas corporation d/b/a Adams Respiratory Therapeutics
("ADAMS"), and Cardinal Health PTS, LLC, a Delaware limited liability company
("CARDINAL").

                              W I T N E S S E T H:

      A. Adams and Cardinal are party to that certain Asset Purchase Agreement
(the "PURCHASE AGREEMENT") dated as of March 24, 2004 whereby Cardinal is
acquiring certain tangible and intangible property from Adams (the "TRANSFERRED
BUSINESS"); and

      B. Adams and Cardinal, in connection with the Transferred Business, wish
to enter into an arrangement whereby each party will provide certain services to
the other on the terms and subject to the conditions set forth in this
Agreement.

      NOW, THEREFORE, in consideration of the foregoing recitals and of the
respective covenants, agreements, representations and warranties herein
contained, and intending to be legally bound hereby, the parties hereto hereby
agree as follows:

      1. Provision of Services. To facilitate an orderly transition of
operations of the Transferred Business, Adams shall perform and provide to
Cardinal the services described in Section A of Part I of the Schedule of
Services attached hereto as EXHIBIT A (the "SCHEDULE OF SERVICES") and Cardinal
shall perform and provide to Adams the services described in Section B of Part I
and in Part II of the Schedule of Services. Cardinal shall have no obligation to
provide such services in a manner that would disrupt normal manufacturing
activities. Cardinal shall provide Adams with advance notice of plans to move
services of the type provided under this Agreement to a location other than the
Fort Worth, Texas facility where the Transferred Business is conducted.

      2. Charges for Services. The (a) charge for the services in Part II of the
Schedule of Services to be provided by Cardinal shall be equal to *% of
Cardinal's cost of providing the services or as otherwise agreed by the parties,
(b) charge for services provided to Adams by Cardinal through Jay Hamilton shall
be equal to Cardinal's cost for such services and (c) charge for customer
shipping performed by Cardinal on behalf of Adams, if any, shall be equal to
Cardinal's customary charge for such services. Except as provided in the
preceding sentence, neither party to this Agreement be shall be charged for the
services provided by the other under Part I of the Schedule of Services.

      3. Term; Termination.

      3.1 Term. (a) With respect to those services set forth on Part I of the
Schedule of Services, the term of this Agreement shall commence on the Effective
Date and shall continue,

-------------
* Omitted information is the subject of a request for confidential treatment
  pursuant to Rule 406 under the Securities Act of 1933 and has been filed
  separately with the Securities and Exchange Commission.

<PAGE>
subject to earlier termination as provided herein, for a term of 90 days and
thereafter shall continue on a month to month basis unless terminated by either
party.

            (b) With respect to those services set forth on Part II of the
Schedule of Services, the term of this Agreement shall commence on the Effective
Date and shall continue until the later of (I) the date Cardinal discontinues
commercial manufacturing operations at the Plant or (II) September 30, 2005.

      3.2 Termination. After the initial term (as set forth in Section 3.1(a)),
either party may terminate this Agreement upon thirty (30) days written notice
to the other party. If a party shall materially breach this Agreement and shall
have failed to cure such breach or undertake substantial efforts towards the
cure of the breach within thirty (30) days of the receipt from the other party
of written notice of such material breach, the non-breaching party may terminate
this Agreement.

      4. Miscellaneous.

      4.1 Successors and Assigns. Cardinal may assign its rights and obligations
(a) to any Cardinal Affiliate (as defined in the Purchase Agreement), or (b) in
connection with any merger, stock exchange or sale of any part of its business
to an assignee that provides reasonably satisfactory business and financial
assurances to Adams and that expressly assumes the obligations of Cardinal
hereunder, in which case such assignment shall constitute a release of Cardinal
of its obligations with respect to this Agreement. Adams may assign its rights
and obligations (a) to any Affiliate (as defined in the Purchase Agreement) of
Adams, or (b) in connection with any merger, stock exchange or sale of any part
of its business to an assignee that provides reasonably satisfactory business
and financial assurances to Cardinal and that expressly assumes the obligations
of Adams hereunder, in which case such assignment shall constitute a release of
Adams of its obligations with respect to this Agreement. Subject to the
foregoing, all of the terms and provisions of this Agreement shall be binding
upon and inure to the benefit of and be enforceable by the successors and
assigns of each party hereto.

      4.2 Notice. Any notice, request, demand, waiver, consent, approval or
other communication which is required or permitted hereunder shall be in writing
and shall be deemed given only if delivered personally or sent by telecopier or
by registered or certified mail, postage prepaid, as follows:

            If to Cardinal, to:

            Cardinal Health PTS, LLC
            14 Schoolhouse Road
            Somerset, New Jersey 08873
            Telecopier No.:  (732) 537-6491
            Attention:  Legal Department

                                       2
<PAGE>
            If to Adams, to:

            Adams Laboratories, Inc.
            Colonial Court
            409 Main Street
            Chester, New Jersey 07930
            Telecopier No: (908) 879-9784
            Attention: Walter E. Riehemann, Esq.

or to such other address or telecopier number as the addressee may have
specified in a notice duly given to the sender as provided herein. Such notice,
request, demand, waiver, consent, approval or other communication will be deemed
to have been given as of the date so delivered, telecopied or mailed.

      4.3 Counterparts; Pronoun. This Agreement may be executed in two or more
counterparts which together shall constitute a single agreement. All pronouns
used in this Agreement shall be deemed to refer to the masculine, feminine,
neuter, singular or plural, as the identity of the person(s) may require.

      4.4 Confidentiality. From time to time Adams and Cardinal may provide
confidential business and technical information to one another either by design
or inadvertently as a result of the provision of services under this Agreement.
All such information (i) disclosed by one party to the other or (ii) discovered
by one party about the other or about the customers, prospective customers,
suppliers and others having business dealings with the other (collectively,
"Confidential Information") shall be kept confidential by the party receiving or
discovering such Confidential Information and the party receiving or discovering
such Confidential Information shall not make use of the Confidential
Information, except to discharge its obligations under this Agreement or any
other agreement between Adams and any Cardinal Affiliate (as defined in the
Purchase Agreement). Neither party shall disclose any Confidential Information
of the other to any person or firm unless previously authorized in writing to do
so; provided, however, that the party receiving any Confidential Information may
disclose same to its responsible officers, employees, agents and representatives
who require said information in order to perform its obligations under this
Agreement or any other agreement between Adams and any Cardinal Affiliate,
provided that said persons shall have assumed like obligations of
confidentiality. Any other provision hereof to the contrary notwithstanding, it
is expressly understood and agreed by the parties hereto that the obligations of
confidence and non-use herein assumed shall not apply to any information which:
(a) is lawfully, at the time of disclosure or thereafter so becomes, a part of
the public domain; (b) was otherwise in the receiving party's lawful possession
prior to disclosure; (c) is hereafter lawfully disclosed to the receiving party
by a third party who is not in violation of an obligation of confidentiality to
the disclosing party relative to said information; or (d) is, by mutual
agreement of the parties hereto, released from a confidential status. Upon
reasonable request, each of Adams and Cardinal shall cause any of its employees,
contractors, agents or representatives to execute an agreement binding such
person to confidentiality provisions substantially identical to the foregoing.
The provisions of this Section 5.3 shall survive the expiration or earlier
termination of this Agreement for a period of ten years. Nothing in this
Agreement shall restrict either party from using or disclosing information
related to the other party properly obtained in the course of other business
relationships for any proper purpose

                                       3
<PAGE>
otherwise permitted. Adams acknowledges Cardinal and the Cardinal Affiliates
have and continue to acquire and develop substantial know-how, expertise and
information relating to the pharmaceutical business and related industries
including without limitation relating to the manufacture of tablets and other
products. Nothing in this Agreement shall be deemed to restrict in any manner
the ability of Cardinal and the Cardinal Affiliates to engage in manufacturing
and related activities. The foregoing shall not be construed as a license to any
patented intellectual property of Adams. In the event of a conflict between this
Section 4.4 and Section 8.9 of the Purchases Agreement, the terms of the
Purchase Agreement will govern.

      4.5 Governing Law. This Agreement shall be governed in all respects,
including validity, interpretation and effect, by the internal laws of the State
of Delaware without regard to the principles of conflict of laws thereof.

      4.6 No Strict Construction. The language used in this Agreement shall be
deemed to be the language chosen by the parties hereto to express their mutual
intent, and no rule of strict construction will be applied against any party.

      4.7 Severability. If any provision of this Agreement, or the application
thereof to any person, place or circumstance, shall be held by a court of
competent jurisdiction to be invalid, unenforceable or void, the remainder or
this Agreement and such provisions as applied to other persons, places and
circumstances shall not be effected thereby and remain in full force and effect
only if, after excluding the portion deemed to be unenforceable, the remaining
terms shall provide for the consummation of the transactions contemplated hereby
in substantially the same manner as originally set forth at the later of the
date of this Agreement was executed or last amended.

      4.8 Entire Agreement. This Agreement, along with the Schedule hereto,
constitutes the entire agreement between the parties hereto with respect to the
subject matter hereof, as distinguished from any other contractual arrangements
between the parties, and this Agreement supersedes and renders null and void any
and all other prior oral or written agreements, understandings, or commitments
pertaining to the subject matter hereof. No amendment hereof shall be deemed
valid unless in writing and signed by the parties hereto, and no discharge of
the terms hereof shall be deemed valid unless by full performance by the parties
hereto or by a writing signed by the parties hereto.

      4.9 Waiver of Breach. The waiver of any of the provisions of this
Agreement by any party shall be limited to the particular instance involved and
shall not be deemed to be a continuing waiver or to waive any other rights of
the same or any other terms of this Agreement.

                            [Signature page follows]

                                       4
<PAGE>
      IN WITNESS WHEREOF, the parties hereto have duly executed this Transition
Services Agreement under seal as of the day and year first above written.

ADAMS LABORATORIES, INC.                  CARDINAL HEALTH PTS, LLC

By:                                       By:
   ---------------------------------         ---------------------------------
Name:                                     Name:
      ------------------------------           -------------------------------

Title:                                    Title
      ------------------------------           -------------------------------

                                       5
<PAGE>
                                    EXHIBIT A

                              SCHEDULE OF SERVICES

Part I - Mutual Services

A. Adams Services for Cardinal

Information Technology Support

Transition of financial control systems

Transition of Telephone and data transmission services

Transition of email server

Shipping to Customers

Transition of Utilities

Mail Transfer Support

Services of Mark Nutall (10 hours per week)

B. Cardinal Services for Adams

Transition of financial control systems

Information Technology Support

Return Product Shipment (Adams to pay shipping charges)_

Electronic file transfer support

Mail Transfer Support

Services of JoAn Eden (10 hours per week)

Part II -- Cardinal Services for Adams

Cardinal shall provide development services relating to Mucinex(R), Mucinex(R)
D, Mucinex(R) DM products and line extensions of such products of the type
performed by Adams personnel at

                                       6
<PAGE>
the Fort Worth facility prior to the closing of the Purchase Agreement as
provided for below (the "PRODUCTS"). For clarification, these services consist
primarily of stability testing, method development and validation, formulation
support and raw material testing.

Process

Adams will submit a project development request with proposed completion
milestones for Products. Cardinal shall review each such request and provide
Adams with a statement of work ("SOW") setting forth the proposed activities, a
projected timeline and budget, and such other matters as the parties may agree.
Following Adams' written approval of an SOW, Cardinal shall undertake to perform
the services set forth in the SOW on the terms and conditions set forth therein.
Upon mutual approval, each SOW shall be incorporated into this Agreement. In the
event of any conflict between the terms of an SOW and this Agreement, the terms
of the SOW shall prevail.

Guidelines

It is understood that Cardinal will make appropriate technical staff available
for discussions as necessary or appropriate to perform the requested services
and that Cardinal shall, upon reasonable request, comply with Adams' requests
for data in support of filings/submissions or other related FDA requests and
afford Adams reasonable opportunity to participate in any investigations
relating to Adams' Products.

Nothing in this Agreement shall obligate Adams to use Cardinal as Adams'
exclusive provider of services of the type described in this Services Schedule.
If Cardinal is unable to perform particular analyses or other services requested
by Adams for Products, Cardinal may, with the consent of Adams not to be
unreasonably withheld, send samples to a third party for testing or analysis or
otherwise engage a third party to subcontract services contemplated by this
Agreement. Otherwise, Adams may engage a third party to provide such services.

Adams' inspection and audit rights relating to services described above shall be
conducted pursuant to the same terms and conditions as set forth in the Supply
Agreement entered into concurrent with this Agreement.

                                       7

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