Document:

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                                                                   EXHIBIT 10.25

CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION. ASTERISKS DENOTE SUCH OMISSIONS.

                            MASTER SERVICES AGREEMENT

This Master Services Agreement (this "Master Agreement"), with an Effective Date
of December 17, 2001, will set forth the terms and conditions among Kos
Pharmaceuticals, Inc. 1001 Brickell Bay Drive, Suite 2500, Miami, FL 33131
("Kos"), Innovex LP, 10 Waterview Boulevard, Parsippany, NJ 07054 ("Innovex"),
and PharmaBio Development, Inc., a North Carolina corporation ("PharmaBio").

                                   BACKGROUND:

         A.       Kos is in the business of developing, manufacturing and/or
                  distributing pharmaceutical and/or biotechnology products,
                  including Kos Advicor(TM) and Niaspan(R) products ("Kos
                  Products"). Innovex is in the business of providing sales,
                  marketing and alternative commercialization services for the
                  pharmaceutical, healthcare and biotechnology industries.

         B.       Kos, Innovex and PharmaBio desire to enter into this Master
                  Agreement to provide the terms and conditions upon which Kos
                  may engage Innovex and its corporate Affiliates to provide
                  contract sales services relating to the Kos Products.

         C.       The specific contract sales services to be provided by Innovex
                  are set forth in this Master Agreement and in the Work Order
                  attached hereto.

         D.       PharmaBio is an Affiliate of Innovex and desires to fund
                  certain expenses incurred by Innovex and to receive certain
                  payments from Kos as set forth in this Master Agreement and in
                  the Investment and Royalty Agreement dated as of the date
                  hereof among Kos, Innovex and PharmaBio (the "Investment and
                  Royalty Agreement").

                                   AGREEMENT:

1.0      DEFINITIONS

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

1.2      "FDA" shall mean the U.S. Food and Drug Administration.

1.3      "Fees" shall mean the compensation payable to Innovex by PharmaBio in
         return for Services. Fees shall not include Pass-Through Expenses.

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1.4      "Pass-Through Expenses" shall mean the reasonable and necessary
         out-of-pocket costs and expenses actually incurred by Innovex in
         providing Services and in accordance with the Work Order.

1.5      "Project" shall mean the complete task or set of tasks described in the
         Work Order.

1.6      "Services" shall mean the responsibilities, obligations and activities
         which are to be performed by Innovex, as they are described in this
         Master Agreement and in the Work Order.

1.7      "Term" and "Project Term" shall have the meanings described in Section
         11.1.

1.8      "Work Order" shall mean Sales Force Work Order #8775 attached hereto as
         Exhibit A.

2.0      SCOPE OF THE AGREEMENT; SERVICES TO BE PROVIDED; WORK ORDER; PROJECT
         TEAMS.

2.1      SCOPE OF AGREEMENT. Innovex agrees to provide the contract sales
         services as set forth in this Master Agreement and the Work Order. This
         Master Agreement covers the provision of professional sales and
         marketing services by Innovex, including, but not limited to,
         recruitment and hiring of full-time sales personnel, providing
         full-time sales personnel, providing promotional education programs and
         other related services, as set forth in this Master Agreement and the
         Work Order.

2.2      WORK ORDER. The specific details and tasks of the Project are set forth
         in this Master Agreement and the Work Order. The Work Order shall be
         subject to all of the terms and conditions of this Master Agreement. To
         the extent any terms or provisions of the Work Order conflict with the
         terms and provisions of this Master Agreement, the terms and provisions
         of this Master Agreement shall control, unless the Work Order expressly
         and specifically states an intent to supersede the Master Agreement on
         a specific matter. A change in a Work Order shall be evidenced by an
         amendment to the Work Order duly executed by Kos, Innovex, and
         PharmaBio in a form acceptable to all such parties.

3.0      PAYMENT OF FEES AND PASS-THROUGH EXPENSES.

3.1      PharmaBio shall pay Innovex the Fees described in the Work Order by
         paying the invoices submitted by Innovex, which payment shall be made
         by PharmaBio through an inter-company transfer directly to Innovex.
         Notwithstanding the foregoing, in no event shall Innovex incur Fees in
         excess of the Maximum Investment set forth in the Investment and
         Royalty Agreement. Kos shall pay Innovex the Pass-Through Expenses
         incurred by Innovex under the terms of this Master Agreement and the
         Work Order.

3.2      Innovex agrees that it shall look only to PharmaBio for the payment of
         the Fees and that Kos shall have no liability for any Fees except as
         specifically provided in the Work Order (the "Excess Fees"). Innovex
         agrees that it shall not be relieved from any obligation to Kos under
         this Master Agreement in the event of any dispute with or breach by
         PharmaBio.

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3.3      Innovex shall invoice Kos monthly for Pass-Through Expenses and Excess
         Fees due. Each invoice shall be accompanied by a detailed expense
         report and supporting documentation. Kos shall make payment within 15
         days after the receipt of each monthly itemized invoice, after which
         time interest shall be due and payable on the unpaid balance at the
         rate of 1.5% per month. If any portion of an invoice is disputed, Kos
         shall pay the undisputed amounts within the aforementioned 15 days, and
         the parties shall use good faith efforts to reconcile the disputed
         amount for payment as soon as practicable and Kos shall have no
         liability for any such fees or expenses. Innovex agrees that it shall
         not be relieved from any obligation to Kos under this Master Agreement
         in the event of any dispute with or breach by PharmaBio.
         Notwithstanding the foregoing, Innovex will use its best efforts to
         audit expense reports submitted by its Sales Force (prior to submitting
         monthly expenses to Kos) to ensure that the expense detailed in such
         expense reports were incurred in support of the services as determined
         by the Steering Committee, as defined in Section 5.6.

3.4      If the period of non-payment of an undisputed amount exceeds 15 days,
         Innovex may, at its sole discretion and without prejudice to any other
         rights or remedies, give Kos a fifteen (15) day written notice of
         intent to suspend Services in connection with the Project, and if the
         non-payment continues after such fifteen (15) day period, Innovex may
         (i) suspend the Services on that Project or (ii) exercise its right to
         give notice of a default in accordance with Section 11.2.

4.0      CONFIDENTIALITY AND OWNERSHIP OF INFORMATION.

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

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4.2      Innovex, PharmaBio and Kos shall limit disclosure of the other party's
         Confidential Information to only those of their respective officers,
         representatives, agents and employees (collectively "Agents") who are
         directly concerned with the performance of this Master Agreement and
         have a legitimate need to know such Confidential Information. Upon
         receipt of notice of termination by Kos, each of PharmaBio and Innovex
         shall return all Kos Confidential Information to Kos within thirty (30)
         days of receipt of such notification.

4.3      All Kos patents, trade secrets, copyrights, trade names, trademarks,
         service marks, proprietary materials or intellectual property and all
         improvements to any of the foregoing (collectively "Kos Property") used
         in connection with the Services provided pursuant to this Master
         Agreement or the Work Order shall remain the sole and exclusive
         property of Kos, and Innovex's rights to use such Kos Property shall be
         limited to those permitted by this Master Agreement or the Work Order.
         Kos and Innovex agree that any Kos Property or improvements thereto
         which are used, improved, modified or developed by Kos under or during
         the term of this Master Agreement or the Work Order are the sole and
         exclusive property of Kos.

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

4.5      No public announcement or other disclosure to any third party
         concerning the existence of or terms of this Master Agreement, the
         Investment and Royalty Agreement, the Work Order, and any other
         document or agreement executed in connection with this transaction (the
         "Transaction Documents") shall be made, either directly or indirectly,
         by any party hereto, except as may be legally required or as may be
         required for financial reporting purposes, without first obtaining the
         written approval of the other party and agreement upon the nature and
         text of such announcement or disclosure. Each party agrees that it
         shall cooperate fully with the other with respect to all disclosures
         regarding the Transaction Documents to the Securities Exchange
         Commission and any other governmental or regulatory agencies or any
         third party, including requests for confidential treatment of
         proprietary information of any party included in any such disclosure.

4.6      Kos shall have and retain sole and exclusive right, title and interest
         in and to all inventions, discoveries, writings, trade secrets,
         know-how, methods, practices, procedures, engineering information,
         marks, designs, devices, improvements, manufacturing information and
         other technology, whether or not patentable, trademarkable or
         copyrightable, and any patent applications, patents, trademarks or

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         copyrights based thereon ("Inventions") that are made, discovered,
         conceived, reduced to practice or generated by Kos (or its employees or
         representatives) or by Innovex's employees or Agents that in any way
         relate to the Kos Products or the active ingredients (niacin and
         lovastatin) in the Kos Products or to the marketing or sales of such
         Kos Products.

5.0      INDEPENDENT CONTRACTOR RELATIONSHIP.

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

5.2      No provision of this Master Agreement or the Work Order shall be deemed
         to create or imply any contract of employment between Kos and any
         employee of Innovex. All persons performing Services shall be employees
         of Innovex, or subcontractors engaged by Innovex with prior written
         consent of Kos, and shall not be entitled to any benefits applicable to
         employees of Kos.

5.3      Innovex will, among other things, (i) maintain all necessary personnel
         and payroll records for Innovex employees; (ii) compute wages and
         withhold applicable Federal, State and local taxes and Federal FICA
         payments for Innovex employees; (iii) remit Innovex employee
         withholdings to the proper governmental authorities and make employer
         contributions for Federal FICA and Federal and State unemployment
         insurance payments; (iv) pay net wages and fringe benefits, if any,
         directly to Innovex employees; and (v) provide for employer's liability
         and Workers' Compensation insurance coverage.

5.4      Innovex shall be responsible for management of all employer obligations
         in connection with Innovex employees who perform the Services. Innovex
         employees shall remain exclusively under the direct authority and
         control of Innovex. Kos may be involved in providing training,
         direction or equipment to an Innovex employee only in the manner and to
         the extent specifically described in the Work Order. The employer
         obligations of Innovex shall include, without limitation: (i) human
         resource issues, including establishment of employee policies, and
         administration of health and benefits plans, 401K plan, and other
         employee benefit plans; (ii) work performance and work behavior issues,
         including probationary period, periodic and annual appraisals, employee
         discipline and termination; (iii) administration of systems for
         time-keeping, payroll and employee expense reimbursement; (iv) day to
         day management of employment issues in connection with performance of
         the Services.

5.5      Innovex agrees that it controls the work site and the scheduling of its
         employees. Innovex will not violate any applicable law pertaining to
         the payments of wages to its employees. Innovex is responsible for and
         hereby agrees to comply with the following: (i) all rules and
         regulations governing the reporting, collection and payment of federal
         and state payroll taxes on wages paid to Innovex's employees,
         including, but not limited to (a) federal income tax withholding
         provisions of the Internal Revenue Code; (b) state and/or local income
         tax withholding provisions, if applicable; (c) Federal Insurance
         Contribution Act (FICA); (d) Federal Unemployment Tax Act (FUTA) and
         (e) applicable state unemployment tax provisions (SUTA); (ii)

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         applicable workers' compensation laws including, but not limited to:
         (a) procuring workers' compensation insurance; (b) completing and
         filing all required reports; and (c) administering, managing and
         otherwise processing claims and related procedures; (iii) Internal
         Revenue Code Section 4980B (COBRA); (iv) the Consumer Credit Protection
         Act, Title III; and (v) all rules and regulations governing
         administration, procurement and payment of all other employee benefits
         specified in the Work Order or covered by this Master Agreement.

5.6      STEERING COMMITTEE.

         a.       Issues may arise under the terms of this Agreement or between
                  the parties while operating under this Master Agreement and
                  the Work Order which are appropriate for consultation between
                  the parties, including the establishment of work rules for the
                  Sales Force, the revising of the performance standards for the
                  Sales Force set forth in Attachment B to the Work Order, and
                  similar matters. The parties shall establish a Steering
                  Committee, which shall be directed and chaired by Kos and
                  consist of up to three (3) members from Kos and up to three
                  (3) members collectively from Innovex and PharmaBio, including
                  the national sales manager of each of Kos and Innovex (the
                  "Steering Committee"). The chairperson's duties shall include
                  site selection, logistics, agenda and facilitations; provided
                  however, that a Steering Committee member may submit agenda
                  items to the chairperson and such items shall be included in
                  the next regular meeting of the Steering Committee. Each
                  member of the Steering Committee shall be an employee or
                  member of the Board of Directors of the party that appointed
                  such member. Initial appointments shall be made within
                  fourteen (14) days of the date of this Master Agreement. A
                  member of the Steering Committee may be removed at any time,
                  with or without cause, by the party that appointed such
                  member.

         b.       The Steering Committee shall meet each quarter, or otherwise
                  at the call of the chairperson to review, coordinate, and
                  discuss issues regarding the Sales Force. In addition, the
                  Steering Committee shall review and resolve issues pertaining
                  to this Master Agreement. Unless this Master Agreement or the
                  Work Order gives a specific party the right to make decisions
                  with regard to any particular subject before the Steering
                  Committee, decisions of the Steering Committee shall be made
                  by consensus. In the absence of a consensus on any material
                  matter, the parties shall resolve such dispute in accordance
                  with the dispute resolution process set forth in Section 11.0
                  of the Investment and Royalty Agreement.

6.0      REGULATORY COMPLIANCE.

6.1      In carrying out their responsibilities under this Master Agreement and
         the Work Order, Innovex and Kos agree to comply, to the extent
         applicable, with all laws, rules and regulations, including, but not
         limited to the Federal Equal Employment Opportunity Act, Title VII of
         the Civil Rights Act of 1964, the Age Discrimination in Employment Act,
         the Americans with Disabilities Act, the Fair Labor Standards Act, the

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         Immigration Reform and Control Act of 1986, the Food, Drug and Cosmetic
         Act, Section 1128B(b) of the Social Security Act (42 U.S.C.
         ss.1320a-7b(b)), and the Prescription Drug Marketing Act.

6.2      If Innovex or its employees become aware of adverse drug experience
         reports involving the use of any Kos Product, while performing any
         Services in connection with the Kos Product, they shall immediately
         notify Kos in accordance with Kos Standard Operating Procedures (the
         "Kos SOPs") in place from time to time. Kos shall deliver to Innovex a
         written copy of the Kos SOPs within fifteen (15) days of executing this
         Master Agreement and thereafter promptly upon any change in such SOPs.

6.3      Kos shall be solely responsible for responding to any government or
         regulatory agency concerning use or marketing of Kos Products, except
         where (i) such responsibility is expressly transferred to Innovex in
         the Work Order; or (ii) to the extent any notice or reporting
         requirement is by law made directly applicable to Innovex. Innovex
         shall promptly notify Kos of any information Innovex receives regarding
         any threatened or pending action by a government or regulatory agency
         that may affect the Kos Products. Innovex shall, at the request of Kos,
         cooperate with Kos in order to respond, or in formulating a procedure
         for taking appropriate action. In no event shall Innovex respond to any
         agency without the prior consent of Kos, unless compelled to do so by
         law.

7.0      REPORTS AND PROJECT ADMINISTRATION

7.1      Innovex will manage and administer the Project in accordance with the
         specifications and milestones contained in the Work Order. Innovex
         shall provide Kos a periodic Project report, in the frequency and with
         content as more particularly described in the Work Order. The Project
         report shall generally include: (i) headcount, turnover, status of
         recruitment; (ii) Project status and progress toward achieving
         objectives or milestones; (iii) financial accountability, and tracking
         expenses against budget.

8.0      RETURN OF KOS MATERIALS.

8.1      Within thirty (30) days after the completion of Services by Innovex, or
         upon termination of the Master Agreement and the Work Order,
         Confidential Information, Kos Property and other data owned by Kos,
         regardless of the method of storage or retrieval, shall at Kos' request
         either be delivered to Kos in such form as is then currently in the
         possession of Innovex, or disposed of, at the direction and written
         request of Kos, unless such materials are otherwise required to be
         stored or maintained by Innovex as a matter of law or regulation.
         Innovex reserves the right to retain, at its own expense and subject to
         the confidentiality provisions herein, one copy of all materials
         provided in connection with performance of the Services, to be used for
         the sole purpose of satisfying regulatory requirements or to resolving
         disputes regarding the Services.

9.0      INDEMNIFICATION AND LIABILITY LIMITS.

9.1      Innovex shall indemnify, defend and hold harmless Kos, its Affiliates
         and its and their respective directors, officers, employees and agents
         from and against any and all losses, claims, actions, damages,
         liabilities, penalties, costs and expenses (including reasonable
         attorneys' fees and court costs) (collectively, "Losses"), resulting
         from any (i) breach by Innovex or its employees of its obligations
         hereunder; (ii) willful misconduct or negligent acts or omissions of
         Innovex or its employees; (iii) violation by Innovex or its employees
         of any municipal, county, state or federal laws, rules or regulations

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         applicable to the performance of Innovex's obligations under this
         Master Agreement or the Work Order (iv) actions or incidents by Innovex
         or any of its employees of criminal or dishonest activity, those
         actions or incidents covered by all liability or insurance policies
         required to be maintained by Innovex under this Agreement, those costs
         attendant to the administration of any collective bargaining agreement,
         and any liabilities or claims against Kos arising out of Innovex's
         non-payment or payment to or participation in a labor organization's
         health and welfare retirement or other benefit fund, including the
         cessation of payment thereto or withdrawal from participation therein,
         with respect to the Sales Force; (v) violations by Innovex of
         employment-related matters with respect to Innovex's employees,
         including matters arising under local, state and/or federal
         right-to-know laws, environmental laws, NLRB, OSHA, EEOC, ADA
         (including without limitation those relating to employment, public
         access and public accommodation), WARN, FMLA, ERISA, all laws governing
         wages and hours (including without limitation: prevailing wage rate;
         exempt and non exempt status; child labor; and minimum wage and
         overtime matters), all laws governing race, sex, sexual harassment,
         retaliation, religion, veteran status, national origin, color, age,
         disability, and marital status, disclosed and undisclosed benefit
         plans, all other labor laws, in each case except to the extent any such
         Losses are determined to have resulted from the negligence or willful
         misconduct of Kos or its employees.

9.2      Kos shall indemnify, defend and hold harmless Innovex, its Affiliates
         and its and their respective directors, officers, employees and agents
         from and against any and all Losses resulting from (i) the manufacture,
         storage, packaging, production, transportation, distribution, sale or
         other disposition of the Products by Kos or its agents; (ii) breach by
         Kos or its employees of its obligations hereunder; (iii) willful
         misconduct or negligent acts or omissions of Kos or its employees; and
         (iv) violation by Kos or its employees of any municipal, county, state
         or federal laws, rules or regulations applicable to the performance of
         Kos's obligations under this Master Agreement or the Work Order, (v)
         actions or incidents by Kos or any of its employees of criminal or
         dishonest activity, those actions or incidents covered by all liability
         or insurance policies required to be maintained by Kos under this
         Agreement, those costs attendant to the administration of any
         collective bargaining agreement, and any liabilities or claims against
         Innovex arising out of Kos' non-payment or payment to or participation
         in a labor organization's health and welfare retirement or other
         benefit fund, including the cessation of payment thereto or withdrawal
         from participation therein, with respect to Kos employees; (v)
         violations by Kos of employment-related matters with respect to Kos'
         employees, including matters arising under local, state and/or federal
         right-to-know laws, environmental laws, NLRB, OSHA, EEOC, ADA
         (including without limitation those relating to employment, public
         access and public accommodation), WARN, FMLA, ERISA, all laws governing
         wages and hours (including without limitation: prevailing wage rate;
         exempt and non exempt status; child labor; and minimum wage and
         overtime matters), all laws governing race, sex, sexual harassment,

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         retaliation, religion, veteran status, national origin, color, age,
         disability, and marital status, disclosed and undisclosed benefit
         plans, all other labor laws, in each case except to the extent any such
         Losses are determined to have resulted from the negligence or willful
         misconduct of Innovex or its employees.

9.3      The party seeking indemnification hereunder (the "Indemnified Party")
         and its employees shall: (a) give the party obligated to indemnify (the
         "Indemnifying Party") prompt written notice of any such claim or
         lawsuit (including a copy thereof); (b) fully cooperate with
         Indemnifying Party and its legal representatives in the investigation
         and defense of any matter the subject of indemnification; and (c) shall
         not unreasonably withhold its approval of the settlement of any such
         claim, liability, or action by Indemnifying Party covered by this
         indemnification provision; provided, however, that Indemnified Party's
         failure to comply with its obligations pursuant to Section 9.3 shall
         not constitute a breach of this Master Agreement nor relieve the
         Indemnifying Party of its indemnification obligations pursuant to
         Section 9.0, except to the extent, if any, that Indemnifying Party's
         defense of the affected claim, action or proceeding actually was
         materially impaired thereby.

9.4      No party, nor their Affiliates, nor any of their or their Affiliate's
         directors, officers, employees, subcontractors or agents shall have any
         liability of any type (including, but not limited to, contract,
         negligence and tort liability), for any loss of profits, opportunity or
         goodwill, or any type of special, incidental, indirect or consequential
         damage or loss, in connection with or arising out of this Master
         Agreement, any Work Order, or the Services performed hereunder.

9.5      Innovex shall not be liable to Kos for claims or losses arising out of
         the statements or representations of Innovex employees with respect to
         Kos Products to the extent the statements or representations conform to
         the written or printed statements or representations made to Innovex
         and Innovex employees by Kos with respect to the Kos Products.

10.0     INSURANCE.

10.1     Innovex and Kos shall each, at its own cost and expense, obtain and
         maintain in full force and effect, the following insurance during the
         Term (and any subsequent renewals thereof): (i) worker's compensation
         insurance in accordance with the statutory requirements of each state
         in which the Services are to be performed; (ii) employer's liability
         insurance with a minimum limit of ***; (iii) comprehensive general
         liability insurance with a minimum limit of ***, combined single limit
         per occurrence; (iv) comprehensive auto liability insurance, covering
         bodily injury and property damage, for owned, hired or non-owned
         automobiles with a minimum limit of ***, combined single limit per
         occurrence; and (v) products liability insurance, with a minimum limit
         of ***, per occurrence (not required for Innovex). Each party shall
         provide the other party an original signed certificate of insurance
         evidencing all coverage herein required, within thirty (30) days after
         the effective date of this Master Agreement. The certificate must
         provide that thirty (30) days prior written notice of cancellation or
         material change in insurance coverage will be provided.

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11.0     TERM AND TERMINATION.

11.1     This Master Agreement shall commence on the date of execution and shall
         continue until terminated as hereinafter provided (the "Term"). The
         Work Order includes a statement of the Project start date and the
         Project end date (the "Project Term").

11.2     Either Kos or Innovex may terminate this Master Agreement and the Work
         Order by written notice at any time if the other party defaults in the
         performance of its material obligations under the Master Agreement or
         the Work Order. In the event of such default, the party declaring the
         default shall provide the defaulting party with written notice setting
         forth the nature of the default, and the defaulting party shall have
         thirty (30) days to cure the default. If the defaulting party fails to
         cure the default within the foregoing time periods, the other party may
         terminate the Master Agreement and the Work Order by written notice to
         the defaulting party, which notice shall be effective upon receipt.

11.3     Either party may terminate this Agreement by written notice to the
         other party, effective upon receipt with no right to cure the default,
         if the other party files a petition for bankruptcy, reorganization or
         arrangement under any state statute, or makes an assignment for the
         benefit of creditors or takes advantage of any insolvency statute or
         similar statute, or if a receiver or trustee is appointed for the
         property and assets of the party and the receivership proceedings are
         not dismissed within sixty (60) days of such appointment.

11.4     In the event this Master Agreement or the Work Order is terminated, Kos
         shall (a) pay to Innovex all Excess Fees which are due and owing to
         Innovex because of any completed performance of Innovex's obligations
         prior to the effective date of termination; and (b) pay all
         Pass-Through Expenses actually incurred by Innovex prior to the
         effective date of termination. All other amounts owed to Innovex
         hereunder shall be the sole responsibility of PharmaBio.

11.5     Termination of this Master Agreement and the Work Order for whatever
         reason shall not affect the accrued rights of either Innovex or Kos
         arising under this Master Agreement or the Work Order, and all
         provisions which expressly or by implication survive the termination or
         expiration of the Master Agreement or the Work Order shall remain in
         full force and effect.

11.6     The parties understand and agree that Kos and PharmaBio each have
         certain rights to terminate this Master Agreement under the Investment
         and Royalty Agreement.

12.0     RELATIONSHIP WITH AFFILIATES.

12.1     Kos agrees that Innovex may utilize the Services of its corporate
         Affiliates to fulfill Innovex's obligations under this Master Agreement
         and the Work Order. In such event, (i) Innovex shall cause such Innovex
         Affiliate to acknowledge and be bound by all the terms and conditions
         of this Master Agreement and the Work Order, and (ii) Innovex shall
         remain responsible and obligated under this Master Agreement and the
         Work Order, as if Innovex was directly providing the Services provided
         by such Innovex Affiliate.

                                       10
<PAGE>

12.2     Kos and Innovex acknowledge that certain Affiliates of Kos may utilize
         the services of Innovex (and its Affiliates) under this Master
         Agreement and under the Work Order. In such event, (i) Kos shall cause
         such Kos Affiliate to acknowledge and be bound by all the terms and
         conditions of this Master Agreement and the Work Order, and (ii) Kos
         shall remain responsible and obligated under this Master Agreement and
         the Work Order, as if Kos was directly receiving the Services provided
         to such Kos Affiliate.

13.0     COOPERATION.

13.1     All data and information in Kos's possession or control necessary for
         Innovex to perform the Services will be delivered by Kos to Innovex.
         Innovex shall not be liable to Kos nor be deemed to have breached this
         Master Agreement or the Work Order as a result of errors, delays or
         other consequences directly arising from Kos's failure to provide
         documents, materials or information or to otherwise cooperate with
         Innovex in order for Innovex to timely and properly perform Innovex's
         obligations.

14.0     FORCE MAJEURE.

14.1     If the performance or observance of this Master Agreement or any
         obligation of this Master Agreement or the Work Order is prevented or
         delayed by reason of an act of God, civil commotion, storm, fire,
         riots, strikes, legal moratorium, war or revolution, the party so
         affected shall, upon prompt notice of such cause being given to the
         other party, be excused from such performance or observance to the
         extent of such prevention or during the period of such delay, provided
         that the party so affected shall use its best efforts to avoid or
         remove the cause(s) of non-performance and observance with utmost
         dispatch.

15.0     REVIEW OF WORK; AUDIT.

15.1     During the term of this Master Agreement, Innovex will permit Kos's
         representative(s) (unless such representatives are competitors of
         Innovex), at reasonable times and in a reasonable manner, and at Kos's
         expense, to (i) examine the work performed hereunder to determine that
         the Services are being conducted in accordance with the agreed terms,
         or (ii) audit the financial records related to Innovex's performance of
         the Services.

16.0     NOTICES.

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

         If to Innovex:          Innovex LP
                                 c/o President, Innovex America Holding Company
                                 10 Waterview Blvd.
                                 Parsippany, NJ 07054
                                 Attention:  President
                                 Fax: 973-257-4581

                                       11
<PAGE>

         With a copy to:       General Counsel
                               Innovex America Holding Company
                               10 Waterview Blvd
                               Parsippany, NJ  07054
                               Fax: 973-257-4581

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

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

         If to Kos:            Kos Pharmaceuticals, Inc.
                               1001 Brickell Bay Drive
                               25th Floor
                               Miami, FL  33131
                               Fax: (305) 577-4596
                               Attn:    President
                                        Secretary
                                        Vice President, Commercial Operations

         With a copy to:       Holland & Knight LLP
                               701 Brickell Avenue
                               Suite 3000
                               Miami, Florida 33131
                               Attention: Rodney H. Bell, Esq.
                               Fax: 305-789-7799

17.0     ASSIGNMENT.

17.1     Except for Affiliates, as stated above in Section 12.0, neither party
         may assign any of its rights or obligations under this Master Agreement
         or any Work Order to any third party without the written consent of the
         other party, which consent shall not be unreasonably withheld, or with
         respect to Kos, in connection with the sale or transfer of all of the
         business to which this Master Agreement relates.

18.0     ARBITRATION.

         a.       Resolution of disputes concerning any aspect of the Services,
                  this Master Agreement or the Work Order, excluding
                  termination, shall be accomplished by good faith negotiations
                  between Kos and Innovex, within thirty (30) days after notice

                                       12
<PAGE>

                  and after complying with the provisions of Section 11.2 of the
                  Investment and Royalty Agreement. If necessary, thereafter,
                  resolution of such disputes shall be accomplished, at written
                  request of either party to the other party within 5 days
                  following the end of such 30 day period, by binding
                  arbitration, which shall not interfere with the timely
                  rendering of Services. The arbitration panel will be composed
                  of three arbitrators, one of whom will be chosen by Kos, one
                  by Quintiles Transnational Corporation ("Quintiles"), and the
                  third by the two so chosen. If both or either of Kos or
                  Quintiles fails to choose an arbitrator or arbitrators within
                  fourteen (14) days after receiving notice of commencement of
                  arbitration, or if the two arbitrators fail to choose a third
                  arbitrator within fourteen (14) days after their appointment,
                  the American Arbitration Association shall, upon the request
                  of both or either of the parties to the arbitration, appoint
                  the arbitrator or arbitrators required to complete the panel.
                  The arbitrators shall have reasonable experience in the matter
                  under dispute. The decision of the arbitrators shall be final
                  and binding on the parties, and specific performance giving
                  effect to the decision of the arbitrators may be ordered by
                  any court of competent jurisdiction. Nothing contained herein
                  shall operate to prevent either party from asserting
                  counterclaim(s) in any arbitration commenced in accordance
                  with this agreement.

         b.       The arbitration shall be filed with the office of the American
                  Arbitration Association ("AAA") located in New York, New York
                  or such other AAA office as the parties may agree upon
                  (without any obligation to so agree). The arbitration shall be
                  conducted pursuant to the Commercial Arbitration Rules of AAA
                  as in effect at the time of the arbitration hearing, such
                  arbitration to be completed in a sixty (60) day period. In
                  addition, the following rules and procedures shall apply to
                  the arbitration.

         c.       The arbitrators shall have the sole authority to decide
                  whether or not any Dispute between the parties is arbitrable
                  and whether the party presenting the issues to be arbitrated
                  has satisfied the conditions precedent to such party's right
                  to commence arbitration.

         d.       The decision of the arbitrators, which shall be in writing and
                  state the findings the facts and conclusions of law upon which
                  the decision is based, shall be final and binding upon the
                  parties, who shall forthwith comply after receipt thereof.
                  Judgment upon the award rendered by the arbitrator may be
                  entered by any competent court. Each party submits itself to
                  the jurisdiction of any such court, but only for the entry and
                  enforcement to judgment with respect to the decision of the
                  arbitrators hereunder. The arbitrators shall have the power to
                  grant all legal and equitable remedies (including, without
                  limitation, specific performance) and award compensatory
                  damages provided by applicable law, but shall not have the
                  power or authority to award punitive damages. No party shall
                  seek punitive damages in relation to any matter under, arising
                  out of, or in connection with or relating to this Agreement in
                  any other forum.

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

                                       13
<PAGE>

                  parties; provided, however, that each party shall bear the
                  costs incurred in connection with any Dispute brought by such
                  party that the arbitrators determine to have been brought in
                  bad faith.

19.0     ADDITIONAL WARRANTIES AND REPRESENTATIONS.

19.1     Innovex and Kos warrant and represent to the other that they have the
         full right and authority to enter into this Master Agreement and that
         there is no impediment that would inhibit their ability to perform
         their respective obligations under this Master Agreement or the Work
         Order.

19.2     Innovex and Kos agree to perform their obligations hereunder in a
         timely, professional and competent manner.

19.3     Kos warrants and represents that it possesses good title to, or the
         right to use, any and all trademarks of the Kos Products, free and
         clear of any claims or encumbrances that would impede the performance
         by either party under the terms of this Agreement or the Work Order. In
         addition, Kos owns or controls the patents or appropriate licenses in
         connection with all Kos Products to be involved in the Services, and
         has no knowledge of the existence of any claim or adverse rights which
         would restrict or prevent Kos or Innovex from performing the Services
         pursuant to this Master Agreement or the Work Order.

19.4     Innovex represents and warrants that there are no collective bargaining
         agreements binding upon Innovex affecting its employees who are or may
         provides services under this Master Agreement or the Work Order, and
         that there are no pending or threatened organizing efforts affecting
         the same.

20.0     GENERAL PROVISIONS

20.1     This Master Agreement shall be construed, governed, interpreted, and
         applied in accordance with the laws of the State of New York, without
         giving effect to the principles of conflict of laws.

20.2     The rights and obligations of Kos and Innovex under this Master
         Agreement and the Work Order, which by intent or meaning have validity
         beyond such termination (including, but not limited to, rights with
         respect to confidentiality, mutual indemnification and liability
         limitations) shall survive the termination of this Master Agreement and
         the Work Order.

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

20.4     References to any Schedule, Appendix, Attachment or Exhibit attached to
         this Master Agreement or the Work Order shall be deemed to incorporate
         the entire contents of the Schedule, Appendix, Attachment or Exhibit by

                                       14
<PAGE>

         reference, as if it were fully set forth in the Master Agreement or the
         Work Order to which it is attached.

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

20.6     If any part or parts of this Master Agreement or the Work Order are
         held to be illegal, void or ineffective, the remaining portions of the
         Master Agreement or the Work Order shall remain in full force and
         effect. If any of the terms or provisions are in conflict with any
         applicable statute or rule of law, then such term(s) or provision(s)
         shall be deemed inoperative to the extent that they may conflict
         therewith, and shall be deemed to be modified or conformed with such
         statute or rule of law. In the event of any ambiguity respecting any
         term or terms hereof, the parties agree to construe and interpret such
         ambiguity in good faith in such a way as is appropriate to ensure its
         enforceability and viability. No party shall assert against the other
         that the compensation arrangement provided in this Agreement or the
         Work Order is ground for voiding the Agreement or the Work Order, or
         rendering the same unenforceable.

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

20.8     This Agreement is intended solely for the mutual benefit of the parties
         hereto and is not intended to create any rights of any kind in a third
         party.

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

INNOVEX LP                                      KOS PHARMACEUTICALS, INC.
by:  Innovex America Holding
     Company, its General Partner

By:/s/ KEVIN D. OVERS                           By:/s/ ADRIAN ADAMS
   ---------------------------------               ----------------------------
   Name: Kevin D. Overs                            Name: Adrian Adams
   Title: Chief Financial Officer                 Title: President and COO

PHARMABIO DEVELOPMENT, INC.

By: /s/ RONALD J. WOOTEN
   ----------------------------------
   Name: Ronald J. Wooten
   Title: President

                                       15
<PAGE>

                                 (ATTACHMENT A)

                          SALES FORCE WORK ORDER # 8775

                 EFFECTIVE DATE OF WORK ORDER: DECEMBER 17, 2001

This Sales Force Work Order is entered into between Kos Pharmaceuticals, Inc.
("Kos"), PharmaBio Development, Inc. ("PharmaBio") and Innovex LP ("Innovex"),
pursuant to the Master Services Agreement, having an Effective Date of December
17, 2001, among Kos, Innovex and PharmaBio, and is subject to all the terms and
conditions set forth therein, except as may be otherwise expressly provided
herein.

A.       BRIEF DESCRIPTION OF SALES FORCE PROJECT:

Innovex agrees to provide a sales force consisting of 150 Sales Representatives,
8 Field Managers, and 1 national sales manager in connection with the promotion
of Niaspan(R) and Advicor(TM). Innovex will further provide the services of 7
additional Field Managers as set forth herein

B.       PROJECT TEAMS:

         KOS CONTACT PERSON:        MIKE TILBURY, NATIONAL SALES MANAGER
                    ADDRESS:        1001 BRICKELL BAY DRIVE 25TH FLOOR

                                    MIAMI, FL 33131
                      PHONE:        305-577-4596
                        FAX:        305-577-4596

INNOVEX NAT'L SALES MANAGER:        TOM SHERWIN
                    ADDRESS:        10 Waterview Blvd.
                                    PARSIPPANY, NJ  07054
                      PHONE:        973-257-4547
                        FAX:        973-257-4571

Routine correspondence relevant to the operation of the sales force should be
sent to the above-named contact persons. All notices or similar communications
in regard to the terms or a change of terms of this Work Order are to be sent to
the parties named in the Master Services Agreement - Section 16.0 Notices.

C.       PROJECT TERM AND KEY DATES:

-------------------------------------------------- ---------------------
Project Start Date                                 December 17, 2001
-------------------------------------------------- ---------------------
Field Manager Start Date                           January 2, 2002
-------------------------------------------------- ---------------------
Sales Representative Training Start Date           January 18, 2002
-------------------------------------------------- ---------------------
Last Day in Field                                  December 31, 2003
-------------------------------------------------- ---------------------
Project End Date                                   December 31, 2003
-------------------------------------------------- ---------------------

<PAGE>

"Project Term" shall mean the period of time beginning on the Project Start Date
and ending on the Project End Date.

D.       DEFINITIONS

1.       "Call(s)" shall mean a visit(s) by a Sales Representative to the office
         of a Prescriber during which the Sales Representative performs at least
         one Detail.

2.       "Day Worked" shall mean a day during which a Sales Representative
         details Prescribers, or attends scheduled company training and/or
         specifically designated home study and shall consist of not less than 8
         consecutive hours of business activity. A "Day Worked" by a Field
         Manager shall mean a day during which the Field Manager performs duties
         and responsibilities described in the Work Order and shall consist of
         not less than 8 consecutive hours of business activity. Days Worked
         shall not include days on leave, holidays, sick days or vacations.

3.       "Detail" shall mean an interactive face-to-face contact by a Sales
         Representative with a Prescriber or the Prescriber's legally empowered
         designee, during which a promotional message involving the Product is
         given in accordance with the Promotional Program. When used as a verb,
         "detail," "details" and "detailed" shall mean to engage in a Detail as
         defined herein.

4.       "Prescriber" shall mean physicians and other health care professionals
         legally authorized to write prescriptions for pharmaceutical products.

5.       "Product(s)" shall mean the Kos products specifically identified in the
         Work Order or any other product whose promotion and detailing is
         assigned to Innovex by mutual agreement with Kos.

6.       "Promotional Expense Budget" shall mean the funding and guidelines for
         use of such funding that are provided by Kos for use by the Sales Force
         when detailing Product.

7.       "Promotional Material" shall mean the Product labeling and package
         inserts, sales aids and detailing materials, and other promotional
         support items provided by Kos to Innovex, for use in promotion of the
         Product.

8.       "Promotional Program" shall mean the marketing plan, strategy and
         promotional message for the Product, which will include use of the
         Promotional Material and the Promotional Expense Budget.

9.       "Sales Force" shall mean the Sales Representatives, Field Managers, and
         National Sales Manager, individually and as a group, that have been
         assigned to deliver Details of the Product in accordance with the terms
         of this Agreement.

10.      "Sales Representative" shall mean an Innovex employee who has been
         trained and equipped to detail Prescribers.

                                       2
<PAGE>

11.      "Target Prescriber" shall mean one of the specifically identified
         Prescribers within a Sales Representative's territory to be detailed by
         the Sales Representative.

12.      "Territory" shall mean the United States. In connection with an
         individual Sales Representative, the territory shall be the geographic
         area assigned to the individual Sales Representative.

13.      "Year One" shall mean the time period beginning on the effective date
         of this Work Order and ending on December 31, 2002.

14.      "Year Two" shall mean the time period beginning on January 1, 2003 and
         ending on December 31, 2003.

E.       INNOVEX RESPONSIBILITIES AND OBLIGATIONS

1.       SALES FORCE. The Sales Force will be composed of the following minimum
         number of Innovex employees:

         ----------------- --------------------------
              NUMBER       POSITION TITLE
         ----------------- --------------------------
               150         Sales Representatives
         ----------------- --------------------------
                8          Field  Managers
         ----------------- --------------------------
                1          National Sales Manager
         ----------------- --------------------------

         In addition, Innovex shall provide appropriate and sufficient Sales
         Management and administrative support.

2.       ADDITIONAL PERSONNEL. Innovex shall provide 7 additional Field Managers
         (the "7 Managers") to Kos for the period determined by Kos. Kos and
         Innovex shall agree on the identity of the 7 Managers. For the services
         of the 7 Managers, Kos shall pay the Excess Fee set forth in paragraph
         G(2) of this Work Order. Otherwise, Innovex's provision of the 7
         Managers shall be subject to same terms and conditions applicable to
         the other Field Managers provided by Innovex hereunder. Kos will
         provide at least sixty (60) days prior notice of any determination to
         cease using the services of any or all of the 7 Managers.
         Notwithstanding anything herein to the contrary, Kos shall be permitted
         to hire all or any portion of the 7 Managers at any time, and, in such
         event, Innovex shall not be required to replace any of the 7 Managers
         hired by Kos.

3.       RECRUITMENT. Innovex shall be responsible for recruitment and
         re-recruitment (replacement) of the Sales Representatives and Field
         Managers in accordance with the Sales Force Qualifications described
         below. Innovex shall backfill open territories within 30 days of the
         date such territory becomes vacant. Innovex shall be responsible for
         the cost of recruitment, background checks and drug screens. If Kos
         elects to participate in the final selection of members of the Sales
         Force, Kos shall approve or disapprove for a good and articulated
         reason qualified candidates within five (5) business days after each
         qualified candidate is submitted to Kos for final selection. A
         "qualified candidate" must meet the Sales Force Qualifications.

                                       3
<PAGE>

4.       SALES FORCE QUALIFICATIONS. Innovex will exercise best efforts to
         recruit from a diverse candidate base. A qualified candidate for Sales
         Representatives shall meet the following minimum qualifications:
         four-year college degree (B.A., B.S. or equivalent); minimum two years
         outside pharmaceutical sales experience. A qualified candidate for
         Field Manager shall meet the following minimum qualifications:
         four-year college degree (B.A., B.S. or equivalent); minimum two years
         outside pharmaceutical sales experience, minimum one year previous
         management experience.

5.       POSITION DESCRIPTIONS AND DUTIES. Innovex shall manage, supervise and
         evaluate the performance of the National Sales Manager, Field Managers
         and Sales Representatives in accordance with the responsibilities and
         duties identified below. All Sales Force employees shall demonstrate
         the following: work ethic and integrity; planning, organizing and
         territory management skills; strong interpersonal skills; excellent
         communication skills; critical thinking and analysis; problem solving;
         decisiveness; sound judgment; customer-focused selling skills; basic
         computer skills; ability to listen and learn.

         SALES REPRESENTATIVES

         o  Generate sales within an assigned territory

         o  Maintain and update current and prospective target physician
            profiles

         o  Keep current with market knowledge and competitive products

         o  Maintain a professional image for Kos and Kos Products

         o  Participate in all training and sales meetings

         o  Plan and organize territory to meet sales and call targets

         o  Make sales presentations (details) - individual, one-on-one,
            in-services

         o  Maintain sample inventories, distribute samples, comply with sample
            accountability procedures and policies, comply with PDMA

         o  Make complete, accurate and timely submission of all time-keeping,
            call activity, sample activity and expense reports

         o  Compliance with Promotional Program, and proper use of Promotional
            Materials and Promotional Expense Budgets

         o  Participate or coordinate Lunch & Learns, dinner programs, weekend
            events, as appropriate

         o  Have appropriate interaction with co-promotional partners or
            counterparts

         o  Meet the minimum requirements set forth in Attachment B

         NATIONAL SALES MANAGER

         o  Recruit, interview and select Sales Representatives and subordinate
            managers

         o  Handle for Field Managers and oversee for Sales Representatives 120
            day and annual performance reviews, personnel issues, discipline and
            termination

         o  Communicate with Kos field/regional managers on regular and timely
            basis

         o  Assist with the planning and delivery of training, and periodic
            sales meetings

         o  Review and approve expense reports; monitor compliance with expense
            policies.

                                       4
<PAGE>

         o  Monitors compliance with Promotional Program, and proper use of
            Promotional Materials and Promotional Expense Budgets

         o  Monitors compliance with PDMA and sample accountability procedures

         o  Monitors time-keeping and attendance

         FIELD MANAGERS

         o  Assist with recruitment of Sales Representatives

         o  Handle initial 120 day and annual performance reviews, personnel
            issues, discipline and termination of Sales Representatives

         o  Review and approve expense reports; monitor compliance with expense
            policies

         o  Conduct quarterly field visits as determined by the Steering
            Committee with Sales Representatives in order to: assess and monitor
            field activity and work schedules; to monitor and manage field
            reporting, including call and sample reporting; to implement
            performance or disciplinary plans.

         o  Communicate with Kos field/regional managers on regular and timely
            basis

         o  Assist with the planning and delivery of training, and periodic
            sales meetings, if necessary

         o  Prepare a Weekly Activity Report (WAR) and submit to Regional
            Manager

         o  Meet the minimum requirements set forth in Attachment B

6.       MINIMUM SALES FORCE FIELD REQUIREMENTS. Sales Representatives and Field
         Managers shall meet the minimum requirements set forth on Attachment B
         hereto.

7.       SALES FORCE COMPENSATION; BENEFITS. Innovex shall compensate the Sales
         Force employees with a combination of salary and variable incentive
         (bonus). Innovex shall establish a target average salary and salary
         matrix, which recognizes greater experience and training, and preferred
         selection criteria. The terms and conditions of a variable incentive
         compensation plan ("Incentive Plan") shall be mutually determined by
         Innovex and Kos, including eligibility criteria and performance
         targets. The plan may also include incentive awards, such as trips and
         prizes. Innovex shall administer the Incentive Plan and pay the
         incentive compensation and awards, in accordance with the Incentive
         Plan. Sales Force employees shall be eligible to receive from Innovex
         an auto allowance, and shall be entitled to participate in the Innovex
         employee benefit plans for health and dental care, 401K, employee stock
         purchase and stock ownership plans, in accordance with Innovex's
         eligibility criteria. Innovex, in its sole judgement after consultation
         with Kos, shall determine the dollar value of any incentive award paid
         to the Sales Force.

8.       TRAINING AND PERIODIC SALES MEETINGS. Innovex shall facilitate the
         participation of the Sales Force in Kos's initial training of the Sales
         Force, Kos' backfill training of replacement Field Managers and Sales
         Representatives and in all follow-up training, including periodic sales
         meetings. Kos may request Innovex's further participation in the
         delivery of training and Innovex will provide such services on a time
         and materials basis as the parties may agree in writing in advance. In
         all cases, Innovex shall monitor and observe all Kos training. Innovex
         may have Sales Force Members participate in the Innovex Leadership
         Development Program, subject to prior approval by Kos of the time and

                                       5
<PAGE>

         duration of the participation in such program and provided that Sales
         Force Members fulfill a minimum threshold of *** Days Worked during
         each of Year One and Year Two.

9.       PROMOTIONAL ACTIVITIES. Kos shall retain primary responsibility for
         developing the promotional activities of the Sales Force. Kos shall
         also monitor and manage the promotional activities of the Sales Force.
         Innovex shall monitor and manage the promotional activities of the
         Sales Force subject to Kos' primary responsibility. Sales
         Representatives shall not be permitted to develop, create or use any
         other promotional material or literature in connection with the
         promotion of the Product. The Sales Representatives will be required to
         immediately cease the use of any Promotional Materials when instructed
         to do so by Kos. Innovex shall monitor that Promotional Materials are
         not changed, (including, without limitation, by underlining or
         otherwise highlighting any text or graphics or adding any notes
         thereto) by the Sales Representatives. Sales Representatives shall be
         required to limit their statements and claims regarding the Product,
         including as to efficacy and safety, to those which are consistent with
         the Product labels, package inserts and Promotional Materials. The
         Sales Representatives shall not be permitted to add, delete or modify
         claims of the efficacy or safety in the promotion of the Product, nor
         shall the Sales Representatives be permitted to make any untrue or
         misleading statements or comments about the Products or any Kos
         competitors or competitor products.

10.      PROJECT REPORTS. Innovex shall provide Kos a monthly Project report,
         both electronically and in hard copy, which shall include: (i)
         headcount, reported nationally, by region/district; vacancy rates,
         turnover, personnel transfers to Kos, status of recruitment/hiring;
         (ii) Project status, milestones, and progress toward achieving
         objectives; and (iii) financial accountability, tracking expenses
         against budget.

11.      REPORTING BY SALES REPRESENTATIVES. Sales Representatives shall be
         required to report all field activities and expenditures in a manner
         that is timely, accurate and honest, and in accordance with policies
         and procedures for the applicable reporting systems. Innovex Field
         Managers shall routinely reinforce the importance of compliance with
         the reporting guidelines and policies (e.g. sample accountability, call
         reporting, promotional budget expenditures, travel expenses). Newly
         hired Sales Representatives shall receive training on the reporting
         systems, guidelines and policies during the initial sales training
         program

12.      RECEIPT FOR KOS PROPERTY. Upon delivery of palm tops to members of the
         Sales Force, Kos will receive signed receipts in substantially the form
         attached hereto as Exhibit 2. Innovex will also receive a copy of each
         receipt.

13.      PDMA AND SAMPLE ACCOUNTABILITY. The Sales Force shall be responsible
         for strict adherence to the PDMA and the Kos sample accountability
         policies and procedures. Innovex shall provide immediate assistance to
         Kos in connection with investigation of discrepancies, thefts,
         significant losses and suspected falsification of sample records.
         Innovex agrees to produce any written sample records that are
         maintained by Innovex, within two business days after Kos request

                                       6
<PAGE>

14.      MANAGEMENT AND DISCIPLINE OF THE SALES FORCE. Innovex shall be
         responsible for managing the Sales Force, subject to Kos' primary
         management responsibility for the promotional activities of the Sales
         Force, and provided that Kos maintains the right to raise concerns
         regarding employee performance or misconduct with Innovex. Innovex has
         sole authority to remove employees from the Sales Force. In conformance
         with Innovex policy, Innovex shall provide appropriate employee
         counseling and discipline, up to and including termination, to Sales
         Force members who violate employment rules and who are otherwise
         under-performing their job responsibilities, including failing to meet
         performance criteria established for the Kos Sales Force from time to
         time. Innovex will promptly follow-up on any reports made by Kos of
         Sales Force member non-compliance and will apply such counseling or
         discipline as may be warranted in Innovex's sole judgement.

F.       KOS RESPONSIBILITIES AND OBLIGATIONS

1.       PROMOTIONAL PROGRAM AND PROMOTIONAL MATERIALS. Kos shall be responsible
         for providing a Promotional Program, Promotional Materials and
         Promotional Expense Budget that (i) will not involve the counseling or
         promotion of a business arrangement that violates federal or state law;
         (ii) will be in compliance with the AMA Guidelines on Gifts to
         Physicians from Industry; and (iii) shall not require or encourage the
         Sales Representatives to offer, pay, solicit or receive any
         remuneration from or to Prescribers to induce referrals or purchase of
         Kos Product. Kos shall be responsible for providing written guidelines
         for proper use of the Kos's Promotional Expense Budget.

2.       TRAINING AND PERIODIC SALES MEETINGS.

         Kos shall be responsible for the following:

         o  Programming, materials and facilities for initial Sales Force
            training. Prior to the Sales Representatives' first day in
            territory, Kos shall provide Innovex, at Innovex's sole expense,
            with one day designated for Innovex training regarding personnel
            management, compensation and benefits and field administration.

         o  Programming, materials and facilities for periodic sales meetings or
            product launch meetings as designated by Kos.

3.       PDMA AND SAMPLE ACCOUNTABILITY. Samples of the Kos Products shall be
         distributed to the Sales Representatives in quantities and in a manner
         determined by Kos and at Kos's expense. Kos shall have primary
         responsibility for compliance with the requirements of the FDA Final
         Rule implementing the PDMA (21 CFR Parts 203 & 205), including, but not
         limited to (a) a sample accountability and tracking system for use by
         the Sales Representatives; (b) verification of licensed practitioners;
         (c) annual physical inventories and reconciliation reports; (d)
         monitoring and investigation of discrepancies, significant losses,
         thefts and falsification of sample records; (e) notification and
         reporting to FDA; (f) a sample distribution security and audit system,
         including conducting random and for cause audits of sales
         representatives by personnel independent of the sales force; and (g)
         training the Sales Force regarding the foregoing. Kos and Innovex shall

                                       7
<PAGE>

         cooperate in connection with PDMA compliance investigations and audits;
         provided, however, that Kos compensates Innovex for such cooperation on
         a time and materials basis. Kos will provide to Innovex for review and
         comment, a copy of any PDMA compliance report in connection with the
         Sales Force, prior to filing with the FDA. Kos will provide Innovex
         with results of annual Sales Representative sample inventories. Kos
         shall be responsible for the cost of independent random audits of
         Innovex Representatives, to be coordinated with Innovex.

4.       SALES DATA. Kos shall be solely responsible for obtaining historic and
         ongoing sales data regarding Kos Products. Kos shall be solely
         responsible to pay any applicable per representative fee required by
         any third party, including, but not limited to, any fee imposed by the
         American Medical Association.

5.       PRODUCTIVITY REPORTS. Kos shall provide Innovex with the data necessary
         to produce productivity reports for the Sales Force similar to the
         productivity reports Kos compile on their own sales activities. Kos
         shall make all reasonable efforts to deliver to Innovex the data with
         the same frequency and with the same speed as such are received and
         distributed by Kos with regard to their own sales forces.

6.       CALL REPORTING SYSTEM AND COMPUTERS. Kos shall be responsible for
         providing a call reporting system and equipping Sales Representatives
         with palm top hardware and software necessary to carry out the
         Promotional Program. Kos shall bear the cost of the hardware and
         software, including appropriate licenses, upgrades, access to
         data/replication lines, help desk support, and training of the Sales
         Force in proper use of the call reporting system and palm tops.

7.       BUSINESS CARDS; DETAIL BAGS. Kos shall supply the Sales Force with
         business cards, the content of which shall be subject to approval by
         Innovex, such approval not to be unreasonably withheld. Kos shall
         supply the Sales Force with detail bags.

8.       SALES FORCE TRAVEL EXPENSES. Kos shall be responsible for the following
         Sales Force travel, lodging and meal expenses, when necessary and
         actually incurred by the Sales Force (in the amounts authorized in a
         mutually agreed Sales Force travel expense budget):

         o  Travel expenses of Sales Force Members to participate in recruitment
            interviews with Kos at Kos' request

         o  Travel expenses of Sales Force in connection with all training and
            periodic sales meetings outside their respective territory

         o  All Sales Representative overnight business travel approved by Kos

         o  All other Innovex travel expenses incurred in furtherance of the
            Project and requested by Kos

         o  Such other expenses as agreed

G.       FEES AND PASS-THROUGH EXPENSES

1.       SALES FORCE FEES. PharmaBio shall pay Innovex a Fee for the Sales Force
         as they may agree.

                                       8
<PAGE>

2.       EXCESS FEES. For the services of the 7 Managers, Kos shall pay Innovex
         an Excess Fee for each Day Worked by one of the 7 Managers as follows:
         (i) in Year One, $*** per Day Worked; (ii) in Year Two, $*** per Day
         Worked.

3.       HIRING OF SALES FORCE MEMBERS. During Year One, Kos shall not solicit,
         recruit, or hire any Sales Force member, except that Kos may hire any
         or all of the 7 Managers at any time. During Year Two, Kos may solicit,
         recruit, or hire any Sales Force member, provided that Innovex shall
         not be required to replace any member of the Sales Force who becomes
         employed by Kos during Year Two, and the minimum requirements set forth
         in Attachment B shall be adjusted accordingly. After Year Two, Kos
         shall be permitted to hire, without payment of any additional
         consideration, members of the Sales Force at any time and from time to
         time. Notwithstanding the foregoing, Kos shall not solicit, recruit, or
         hire any Sales Force member following any termination of this Master
         Agreement prior to the end of the Project Term.

4.       PAYMENT SCHEDULE. Innovex shall provide Kos a copy both electronically
         and in hard copy on a monthly basis of invoices for all Excess Fees and
         Pass-Through Expenses, which shall be payable by Kos. Each invoice
         shall be accompanied by a detailed expense report and supporting
         documentation. At the end of each calendar month, Innovex shall provide
         a schedule of the total number of Days Worked by each of the 7
         Managers.

5.       EXPENSE ALLOCATION CHART. The financial responsibility of Innovex
         and/or PharmaBio and Kos for expenses and costs of Sales Force
         operation shall be allocated in accordance with the terms of this Work
         Order, which are summarized for illustrative purposes in the "Sales
         Force Expense Allocation" chart (Attachment A).

In Witness Whereof, Kos, PharmaBio, and Innovex have caused this Work Order
#8775 to be duly executed on their behalf by their authorized representatives
and made effective as of Effective Date of Work Order appearing above.

ACCEPTED AND AGREED TO BY:

KOS PHARMACEUTICALS, INC.                   INNOVEX LP

                                            BY: INNOVEX AMERICA HOLDING
                                                COMPANY, ITS GENERAL PARTNER

/s/ ADRIAN ADAMS                            /s/ KEVIN D. OVERS
-------------------------------------       ------------------------------------
By: Adrian Adams                                By: Kevin D. Overs
Title: President and COO                        Title: Chief Financial Officer
Date: December 17, 2001                         Date: December 17, 2001

PHARMABIO DEVELOPMENT, INC.

/s/ RONALD J. WOOTEN
------------------------------------
By: Ronald J. Wooten
Title:  President
Date: December 17, 2001

                                       9
<PAGE>

                     ATTACHMENT A TO SALES FORCE WORK ORDER
                         SALES FORCE EXPENSE ALLOCATION

                          December 2001/Project # 8775
<TABLE>
<CAPTION>

------------------------------------------------------------------------ ---------------- ------------------ ---------------
                               CATEGORY                                     INNOVEX/         PASSTHROUGH          KOS
                                                                           PHARMA BIO         EXPENSES           DIRECT
                                                                             DIRECT                             EXPENSES
                                                                            EXPENSES
------------------------------------------------------------------------ ---------------- ------------------ ---------------
<S>                                                                        <C>                 <C>              <C>
Salary, including payroll taxes, for Sales Representatives, Field               X
Managers, National Sales Manager
------------------------------------------------------------------------ ---------------- ------------------ ---------------
Incentive compensation (bonus) for Sales Representatives, Field                 X
Managers, National Sales Manager, including payroll taxes
------------------------------------------------------------------------ ---------------- ------------------ ---------------
Benefits package, including (401k), ESOP, ESPP, medical, dental, Rx,            X
vacation, holidays
------------------------------------------------------------------------ ---------------- ------------------ ---------------
Auto Costs in territory, including monthly allowance, mileage  reimbursement,
parking and tolls.                                                              X
------------------------------------------------------------------------ ---------------- ------------------ ---------------
Basic Business Expenses in territory, including phone, paper supplies, postage
and voice mail.                                                                 X
------------------------------------------------------------------------ ---------------- ------------------ ---------------
Business Cards & Detail Bags                                                                                       X
------------------------------------------------------------------------ ---------------- ------------------ ---------------
Call Reporting & Sample Accountability                                                                             X
------------------------------------------------------------------------ ---------------- ------------------ ---------------
Palm tops for Sales Representatives, including software, helpdesk                                                  X
support, data/replication lines
------------------------------------------------------------------------ ---------------- ------------------ ---------------
Computers for DMs, including software, helpdesk support,                                                           X
data/replication lines
------------------------------------------------------------------------ ---------------- ------------------ ---------------
Infrastructure support (operations, HR, finance, legal)                         X
------------------------------------------------------------------------ ---------------- ------------------ ---------------
Liability Insurance: employment, workers comp, E & O, CGL, auto                 X
------------------------------------------------------------------------ ---------------- ------------------ ---------------
Recruitment and re-recruitment, includes drug screens, background and           X
motor vehicle checks
------------------------------------------------------------------------ ---------------- ------------------ ---------------
Meetings:  Kos national, regional and district meetings; product                                                   X
launches
------------------------------------------------------------------------ ---------------- ------------------ ---------------
Promotional Expense Budget (access money)                                                         X
------------------------------------------------------------------------ ---------------- ------------------ ---------------
Promotional Program and Promotional Materials (sales aids)                                                         X
------------------------------------------------------------------------ ---------------- ------------------ ---------------
Promotional marketing expenses, including sales data                                                               X
------------------------------------------------------------------------ ---------------- ------------------ ---------------
Samples, including distribution to Sales Representatives                                                           X
------------------------------------------------------------------------ ---------------- ------------------ ---------------
Training program, materials and facilities; initial and follow-up                                                  X
------------------------------------------------------------------------ ---------------- ------------------ ---------------
Travel  Expenses  (air,  hotel,  meals,  T&E)  for  Sales  Reps,  Field
Managers, National Sales Manager

* Interviewing with Kos                                                                           X
* Training                                                                                        X
* All overnight business travel outside
  respective territories or                                                                       X
  districts and requested by Kos                                                                  X
* Innovex project related travel requested by Kos
------------------------------------------------------------------------ ---------------- ------------------ ---------------

</TABLE>

                                       10
<PAGE>

                  ATTACHMENT B TO SALES FORCE WORK ORDER #8775

                 MINIMUM SALES FORCE FIELD REQUIREMENTS APPENDIX

A. Innovex Minimum Requirements:

(i) Commencing April 1, 2002, in the event that during any calendar quarter
Innovex maintains less than an average of 150 but more than 143 Sales
Representatives performing Calls as required under paragraph B below for each
required Day Worked during such quarter, then during the next quarter Innovex
shall be required to cause its Sales Representatives to provide an additional
number of Calls equal to the number of Calls required to be but not performed
during such preceding quarter.

(ii) Commencing April 1, 2002, in the event that during any calendar quarter
Innovex maintains less than an average of 143 Sales Representatives performing
Calls as required under paragraph B below for each required Day Worked during
such quarter, then Innovex shall be in breach of the Master Agreement and shall
be required to institute a Corrective Action Plan in accordance with paragraph E
below. The number of Days Worked required to be performed by a Sales
Representative during any calendar quarter shall be calculated based on the
number of days during such quarter that Kos is open for business, subject to an
approved leave of absence with respect to such Sales Representative. A leave of
absence is approved if the Sales Representative has the right to such leave
under law (FMLA, ADA, etc.), such leave is available under existing Innovex
policy as set forth in the Innovex Field Employee's Guide, or such leave is
approved by the Steering Committee.

B. Sales Representative Minimum Requirements:

Sales Representatives shall be required to complete a minimum average of ***
Calls per Day Worked. The number and quality of such Calls shall be measured and
monitored by Kos field audits, as well as independent audits, and shall be
performed in accordance with the standards in place from time to time for the
Kos Sales Force. At least **% of all Calls shall be to Targeted Prescribers or
to licensed prescribers sharing offices with Targeted Prescribers.

C. Field Manager Minimum Requirements:

Field Managers shall be required to spend a minimum of **% of their time with
Sales Representatives in the field. The Field Managers' performance shall be
measured and monitored by Kos field audits, as well as independent audits, and
shall be performed in accordance with the standards in place from time to time
for the Kos Sales Force.

D. Steering Committee Oversight:

The Steering Committee shall monitor Innovex's performance against the Minimum
Requirements set forth herein. The Steering Committee may revise these Minimum
Requirements from time to time in accordance with Section 5.6 of the Master
Agreement.

                                       11
<PAGE>

E. Corrective Action Plan:

1. In the event that Kos provides Innovex with notice that it is in breach of
the Master Agreement under paragraph A above for a calendar quarter, then
Innovex shall promptly, but in no event later than 10 days after receipt of such
notice, provide the Steering Committee with a written Corrective Action Plan
reasonably designed to cure the deficiencies in Innovex' performance, including
without limitation the "make-up" of any deficiency in the number of Calls
performed by the Sales Representatives relative to the number of Calls required
under the Master Agreement and the Work Order to be performed by Sales
Representatives during such calendar quarter, within 75 days following Innovex'
receipt of such notice. Any Corrective Action Plan submitted by Innovex shall be
considered by the Steering Committee with reference to the actual performance
levels of comparable Kos sales representatives.

2. In the event that the Steering Committee reasonably fails to approve the
Corrective Action Plan and the parties have completed the dispute resolution
procedures set forth in Section 11.2 of the Investment and Royalty Agreement, or
upon Innovex failing to implement and achieve the goals of the Corrective Action
Plan within such 75 day period, then Kos may provide Innovex with written notice
of Kos' intent to terminate the Master Agreement, which notice shall specify, if
applicable, the nature of the Innovex' failure. Such notice of termination shall
become effective 30 days after Kos' delivery of such notice unless Innovex has
cured any such failure or breach prior to the end of such 30 day period. Any
termination of the Master Agreement under this Attachment B shall be deemed to
be a termination of the Master Agreement under Section 11.2 of the Master
Agreement.

                                       12
<PAGE>

                       EXHIBIT 2 TO SALES FORCE WORK ORDER

                          RECEIPT FOR CUSTOMER PROPERTY

I acknowledge receipt of the following computer hardware and software from Kos:

Equipment

         [List with serial nos.]

Software
         [List]

Total Approximate Value $_________  [INSERT VALUE AGREED TO BY INNOVEX & KOS]

I certify that I will use the Kos hardware and software listed above, as well as
any other material provided to me by Kos, solely for the purpose of providing
services for Kos in connection with the Sales Force project, and in accordance
with any applicable directions given by Kos to Innovex. I further certify that I
will not copy or reproduce any of the software listed above without the express
written permission of Kos. I will not install any software that is not
authorized in advance by Kos and Innovex (e.g. AOL, screen savers, etc.). I
acknowledge and understand I may be held personally responsible for loss or
damage which results from misuse, abuse, failure to safeguard or failure to
return the computer, hardware and software.

If I have technical problems with the hardware or software listed above, I will
promptly contact the Kos help desk or technical support services, in accordance
with the instructions provided to me.

I certify that I will return the hardware and software listed above, as well as
all other material provided to me by Kos, when I no longer need it to perform
services on behalf of Kos, or upon request by Kos. Upon termination of my
employment with Innovex, for any reason whatsoever, or if otherwise requested by
Kos or Innovex, I promise to immediately return the computer, hardware and
software.

I further understand that if I fail to immediately return the Kos property when
required or requested to do so, that Innovex and/or Kos may take any lawful
action deemed necessary to recover possession. I agree and give my consent that
Innovex may set off the value of the unreturned property against any amounts
owed to me by Innovex, including salary, bonus compensation and expense
reimbursements, to the full extent permitted by applicable law.

Agreed and Acknowledged, this _____day of _______, 2002.

_______________________________________________(signature)

_______________________________________________(print or type name)

Distribution:     Original to Kos
                  cc:  Innovex Field Manager
                  cc: Sales Representative

                                       13<PAGE>
                                                                   EXHIBIT 10.26

  CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
             EXCHANGE COMMISSION. ASTERISKS DENOTE SUCH OMISSIONS.

                        INVESTMENT AND ROYALTY AGREEMENT

This Investment and Royalty Agreement (this "Agreement") is made as of December
17, 2001, by and among Kos Pharmaceuticals, Inc., a Florida corporation ("Kos"),
PharmaBio Development, Inc., a North Carolina corporation ("PharmaBio"), and
Innovex LP, a New Jersey Limited Partnership ("Innovex").

BACKGROUND AND OVERVIEW

A.       Kos, Innovex and PharmaBio have executed a Master Services Agreement on
         the date hereof, pursuant to which Innovex will provide contract sales
         services in the Territory for the Products.

B.       Kos and PharmaBio have agreed that PharmaBio will fund the payments for
         certain of the services provided by Innovex under the Master Services
         Agreement pursuant to the terms and conditions set forth herein.

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

1.0      DEFINITIONS.

1.1      "Advicor" shall mean the product currently known as Advicor(TM), as
         such name may change from time to time, for any and all formulations
         and delivery mechanisms.

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

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

1.4      "Commercialization Expenses" shall mean the fees and expenses payable
         to Innovex under the Master Services Agreement for providing one
         hundred and fifty (150) sales representatives, eight (8) field
         managers, and one (1) national sales manager. For purposes of the
         funding obligations of PharmaBio under this Agreement, notwithstanding
         anything to the contrary contained in this Agreement,
         "Commercialization Expenses" shall not include (i) Excess Fees payable
         under Section G(2) of the Work Order (as defined in the Master Services
         Agreement) or (ii) Pass-Through Expenses payable under Section 3.1 of
         the Master Services Agreement.

<PAGE>

1.5      "Commercialization Services" shall mean the recruitment, deployment and
         management of a sales force for the promotion of the Products pursuant
         to the terms of the Master Services Agreement.

1.6      "Royalty Term" shall mean the five (5) consecutive Annual Periods
         beginning on the Launch Date.

1.7      "FDA" shall mean the US Food and Drug Administration.

1.8      "Launch Date" shall mean January 1, 2002.

1.9      "Maximum Investment" shall mean Innovex's charges for the
         Commercialization Expenses for providing one hundred and fifty (150)
         sales representatives, eight (8) field managers, and one (1) national
         sales manager for each of the two (2) Annual Periods following the
         Launch Date.

1.10     "Minimum Sales Force Level" shall mean a Kos sales force size of not
         less than *** Kos sales representatives promoting the Products in the
         first and second detailing positions.

1.11     "Net Sales" means the amount billed by Kos or an Affiliate or any
         sublicensee (or other transferee), or on behalf of or for the benefit
         of Kos or an Affiliate or any sublicensee (or other transferee), for
         sales of the Products to a third party in the Territory, subject to any
         deferrals of such Net Sales required by generally accepted accounting
         principles ("GAAP"), less provisions for: (i) discounts, including cash
         and quantity discounts, charge-back payments, refunds and rebates
         granted to managed health care organizations or similar organizations
         or to federal, state and local governments (including, without
         limitation, Medicaid rebates), their agencies, and purchasers and
         reimbursers or to trade customers, including but not limited to,
         wholesalers and chain and pharmacy buying groups, (ii) credits or
         allowances resulting from customer claims, damaged goods, rejections or
         returns of the Products, including recalls, regardless of the party
         requesting such, (iii) freight, postage, shipping and insurance charges
         actually allowed or paid for delivery of Products, to the extent
         billed, (iv) taxes, duties or other governmental charges levied on,
         absorbed or otherwise imposed on sale of such Products, including
         without limitation value-added taxes, or other governmental charges
         otherwise measured by the billing, when included in billing, as
         adjusted for rebates, charge-backs and refunds, and (v) actual or
         expected write-offs of uncollectible customer accounts for recorded
         sales or for other reserves or provisions established consistent with
         GAAP.

1.12     "Niaspan" shall mean the product currently known as Niaspan(R), as such
         name may change from time to time, for any and all formulations and
         delivery mechanisms.

1.13     "Products" shall mean Advicor(TM)and Niaspan(R).

1.14     "Territory" shall mean the United States.

                                       2
<PAGE>

2.0      MASTER SERVICES AGREEMENT.

         The Master Services Agreement is in the form attached hereto as EXHIBIT
         A. All defined terms used herein but not defined in this Agreement
         shall have the meanings set forth in the Master Services Agreement.

3.0      INVESTMENT AND ROYALTIES; RELATED AGREEMENTS.

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

         (a)      PharmaBio shall fund one hundred percent (100%) of the
                  Commercialization Expenses for the period beginning on the
                  Launch Date and ending on the second (2nd) anniversary of the
                  Launch Date (the "Commitment Period"), subject to the Maximum
                  Investment for each such year and the other terms and
                  conditions in this Agreement.

         (b)      PharmaBio shall fund the amounts payable under Section 3.1(a)
                  by paying the invoices submitted by Innovex that correspond to
                  the applicable Commercialization Expenses that accrue during
                  the Commitment Period, which payments shall be made by
                  PharmaBio through an inter-company payment directly to
                  Innovex. Innovex shall accept such payments from PharmaBio in
                  full satisfaction of the Commercialization Expenses. In no
                  event shall Kos be responsible for the payment of the
                  Commercialization Expenses, and each of Innovex and PharmaBio
                  agree to hold Kos harmless from such expenses.

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

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

         Notwithstanding anything to the contrary contained in this Agreement,
         the total royalties payable to PharmaBio under this Section 3.2 shall
         not (i) exceed in the aggregate for all Annual Periods the amount of
         $75,000,000 (and, accordingly, PharmaBio's right to receive royalties
         will end upon PharmaBio's receipt of $75 Million in royalties paid by
         Kos), or (ii) be less than $45 Million in the aggregate for all Annual
         Periods, provided that there shall not be any minimum royalty
         commitment by Kos in the event that this Agreement or the Master
         Services Agreement is terminated prior to the end of the Project Term
         (as such term is defined in the Master Services Agreement) or under
         Section 3.4, 3.7, or 6.0 of this Agreement. As it relates to the
         minimum royalty commitment, at the end of the fifth (5th) Annual
         Period, if PharmaBio has not received at least $45 Million in aggregate
         royalties under this Section 3.2, then Kos will pay PharmaBio the

                                       3
<PAGE>

         difference between the amount of royalties actually received and $45
         Million. The $45 Million minimum payment shall be payable by Kos to
         PharmaBio notwithstanding the actual sales of the Product or other
         Product-related events.

         In consideration for Innovex's failure to achieve the target of one
         hundred and fifty sales representatives on or before April 1, 2002
         under the Master Services Agreement (and the expectation that the
         number of sales representatives will be below one hundred and fifty for
         much of the first quarter following the Launch Date), Kos shall be
         entitled to reduce its quarterly royalty payments to PharmaBio by the
         amount of $62,500 per quarter for the first eight quarters following
         the Launch Date. In calculating the minimum and maximum royalty
         obligations pursuant to the preceding paragraph, the parties shall use
         the net amount of the royalty payments made to PharmaBio (i.e., after
         giving effect to the reduction described in the preceding sentence). In
         no event shall PharmaBio be obligated to pay such $62,500 payments
         other than as an offset to royalties payable by Kos under this
         Agreement.

         The royalty payments under this Section 3.2 shall be paid as soon as
         reasonably practicable following the end of each calendar quarter (but
         not later than forty five (45) days following the end of each calendar
         quarter, except following the fourth quarter, in which case Kos shall
         have up to 60 days) during the five (5) Annual Periods in the Royalty
         Term. Kos shall provide PharmaBio with the sales data for the Products
         that are available to Kos.

3.3      Kos shall use its commercially reasonable efforts to commercialize the
         Products in the Territory. In this regard, Kos will provide a sales
         force of an average size, calculated on a quarterly basis, not less
         than the Minimum Sales Force Level during the Royalty Term. If, at any
         time during such period, Kos reduces the Products' average sales force
         below the Minimum Sales Force Level for a period of more than sixty
         (60) days, then Kos and PharmaBio will negotiate in good faith to
         restructure PharmaBio's commitments under Section 3.1 and the
         corresponding royalty amounts under Section 3.2, which negotiations
         will take into account the implications of the reduced sales force size
         on future sales of the Products. If the parties are unable to agree to
         such restructuring within thirty (30) days after PharmaBio gives
         written notice to Kos of its intent to pursue a remedy under this
         Section 3.3 for Kos' failure to maintain the Minimum Sales Force Level,
         then PharmaBio may, at its sole discretion by written notice to Kos,
         elect to (i) suspend all future funding obligations under Section 3.1;
         and (ii) extend the Royalty Term (including, without limitation, the
         then-current Annual Period). During the suspension and extension
         period, PharmaBio shall continue to receive royalties at the rate equal
         to the royalty amount applicable immediately prior to the effective
         date of the suspension and extension period. If PharmaBio elects this

                                       4
<PAGE>

         remedy, the then operating Annual Period for royalty payments under
         Section 3.2, and the funding commitments under Section 3.1, shall be
         extended until the Minimum Sales Force Level is satisfied. The funding
         commitments under Section 3.1, shall resume as soon as Kos achieves the
         Minimum Sales Force Level, and the end of the then current Annual
         Period shall be extended for the amount of the suspension and extension
         period, such that PharmaBio enjoys the full length of the five (5)
         Annual Periods described in Section 3.2 with the benefit of the Minimum
         Sales Force Level for five (5) full twelve-month periods, and the term
         "Royalty Term" shall, for all purposes under this Agreement, be
         extended accordingly. PharmaBio's remedies under this Section 3.3 shall
         not apply for any period that Innovex fails to satisfy its sales force
         staffing obligations under the Master Services.

3.4      In the event that Kos terminates the Master Services Agreement under
         Section 11.2 of the Master Services Agreement during the First or
         Second Annual Period, this Agreement shall be terminated and PharmaBio
         shall be entitled to receive royalties on Net Sales as provided in
         Section 3.2 only through the date of termination of the Master Services
         Agreement. PharmaBio shall also be entitled to receive the amount equal
         to (x) amounts funded by PharmaBio under Section 3.1 of this Agreement
         through the effective date of termination less any royalties paid to
         PharmaBio pursuant to Section 3.2, PLUS (y) interest on such net funded
         amounts at the Prime Rate plus one percent (1%), provided however, that
         Kos shall be entitled to pay such amount in equal quarterly
         installments within thirty (30) days following the end of each quarter
         over the two year period following the termination. In the event of
         termination under this section, Kos shall not be obligated to meet any
         minimum royalty commitment to PharmaBio.

3.5      As further consideration for PharmaBio's funding obligations under this
         Agreement, Kos hereby makes the representations and warranties set
         forth on Schedule 3.5.

3.6      Each Party shall keep or cause to be kept such records as are required
         to determine, in a manner consistent with GAAP, the sums or credits due
         under this Agreement. Each party shall have the right, at such party's
         expense, through a certified public accountant or like person
         reasonably acceptable to the other Party, upon execution of a
         confidentiality agreement, to examine such records during regular
         business hours upon reasonable notice during the life of this Agreement
         and for twelve (12) months after its termination; provided however,
         that (i) such examination shall not take place more than once a year
         and shall not cover such records for more than the preceding Annual
         Period, and (ii) such accountant shall report to both Parties only as
         to the accuracy of the reports or payments provided or made by the
         other Party under this Agreement. Any adjustments required as a result
         of overpayments or underpayments identified through a Party's exercise
         of audit rights, and any other adjustments that may be required from
         time to time in order to correct overpayments or underpayments under
         this Agreement, shall be made by subtracting or adding, as appropriate,
         amounts from or to the next royalty payment in accordance with Section
         3.2. The Party requesting the audit shall bear the full cost of the
         audit unless such audit correctly discloses that the discrepancy for
         the Annual Period differs by more than five (5) percent from the amount
         the accountant determines is correct, in such case the owing Party
         shall pay the reasonable fees and expenses charged by the accountant.
         In the event that a Party disputes an invoice or other payment
         obligation under this Agreement, such Party shall timely pay the amount
         of the invoice or other payment obligation, and the Parties shall
         resolve such dispute in Accordance with Section 11.

                                       5
<PAGE>

3.7      Within seventy five (75) days following the first (1st) anniversary of
         the Launch Date, if (i) actual cumulative Net Sales for the Products
         are less than $*** for the first Annual Period, and (ii) the aggregate
         Net Sales for the Products for Kos' fourth fiscal quarter of 2002 are
         less than **% greater than the aggregate Net Sales of the Products
         during Kos' third fiscal quarter of 2002, each of Kos and PharmaBio
         shall have the right to (i) terminate this Agreement and the Master
         Services Agreement upon thirty (30) days written notice to the other
         parties hereto. In the event of any such termination, Kos shall pay
         PharmaBio an amount equal to (x) amounts funded by PharmaBio under
         Section 3.1 of this Agreement through the effective date of termination
         less any royalties paid to PharmaBio pursuant to Section 3.2, PLUS (y)
         interest on such net funded amounts at the Prime Rate plus one percent
         (1%), provided however, that Kos shall be entitled to pay such amount
         in equal quarterly installments over the two year period following the
         termination. In the event of termination under this section, Kos shall
         not have any minimum royalty commitment to PharmaBio.

4.0      CONFIDENTIALITY AND OWNERSHIP OF INFORMATION.

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

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

                                       6
<PAGE>

4.3      All Kos inventions, processes, know-how, patents, trade secrets,
         copyrights, trade names, trademarks, service marks, marketing
         materials, proprietary materials or other intellectual property of any
         kind, and all improvements to any of the foregoing (collectively, "Kos
         Property"), disclosed, used, improved, modified or developed in
         connection with the relationship contemplated by this Agreement shall
         remain the sole and exclusive property of Kos. Neither PharmaBio nor
         Innovex shall have any right, title or interest in or to any Kos
         Property.

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

4.5      Neither PharmaBio, Innovex, nor Kos or any of their Affiliates shall
         make any public announcements regarding this Agreement or the terms and
         conditions thereof without the prior written approval of Kos on the one
         hand and PharmaBio or Innovex on the other hand.

5.0      INDEPENDENT CONTRACTOR RELATIONSHIP.

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

6.0      TERMINATION.

         Either party may terminate this Agreement for material breach upon
         thirty (30) days written notice specifying the nature of the breach, if
         such breach (i) has not been substantially cured within the thirty (30)
         day period or (ii) is not curable within such 30-day period and the
         breaching party has not commenced and diligently continued during such
         30-day period reasonable actions to cure such breach. During the 30-day
         cure period for termination due to breach, each party will continue to
         perform its obligations under this Agreement. Either party may
         terminate this Agreement immediately upon provision of written notice
         if the other party becomes insolvent or files for bankruptcy or is not
         otherwise able to pay its obligations as they become due and payable.
         Any termination under this Section 6 shall be without prejudice to any
         claims for damages or other relief by the terminating party.

                                       7
<PAGE>

7.0      INDEMNIFICATION AND LIABILITY LIMITS.

7.1      PharmaBio shall indemnify, defend and hold harmless Kos, its Affiliates
         and its and their respective directors, officers, employees and agents
         from and against any and all losses, claims, actions, damages,
         liabilities, penalties, costs and expenses (including reasonable
         attorneys' fees and court costs) (collectively, "Losses"), resulting
         from any: (i) breach by PharmaBio (or its employees) of its obligations
         hereunder; (ii) willful misconduct or grossly negligent acts or
         omissions of PharmaBio or its employees; and (iii) violation by
         PharmaBio or its employees of any municipal, county, state or federal
         laws, rules or regulations applicable to the performance of PharmaBio's
         obligations under this Agreement; except, in each case, to the extent
         such Losses are determined to have resulted from the gross negligence
         or willful misconduct of Kos or its employees.

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

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

7.4      Neither PharmaBio nor Kos, nor any of such party's Affiliates,
         directors, officers, employees, subcontractors or agents shall have,
         under any legal theory (including, but not limited to, contract,
         negligence and tort liability), any liability to any other party hereto
         for any loss of opportunity or goodwill, or any type of special,

                                       8
<PAGE>

         incidental, indirect or consequential damage or loss, in connection
         with or arising out of this Agreement. For the avoidance of doubt, a
         claim by PharmaBio for royalties on Net Sales payable by Kos hereunder
         or a claim by Kos for payments pursuant to Section 3.1 shall not be
         limited in any way pursuant to the provisions set forth in the
         preceding sentence.

8.0      NOTICES.

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

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

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

         If to Kos:             Kos Pharmaceuticals, Inc.
                                1001 Brickell Bay Drive, Suite 2500
                                Miami, FL 33131
                                Attn:    President
                                         Secretary
                                         Vice President, Commercial Operations
                                Fax: 305-577-4596

         With a copy to:        Holland & Knight LLP
                                701 Brickell Avenue
                                Suite 3000
                                Miami, FL 33131
                                Attn: Rodney H. Bell, Esq.
                                Fax:  305-789-7799

9.0      ASSIGNMENT.

         No party may assign any of its rights or obligations under this
         Agreement to any third party other than an Affiliate without the
         written consent of the other party, except that Kos may assign its
         rights or obligations under this Agreement to a bona fide third party
         that acquires all of Kos' business to which this Agreement relates (a
         "Permitted Sale") provided that such party assumes all of Kos' rights
         and obligations under this Agreement. PharmaBio may at any time assign

                                       9
<PAGE>

         or transfer any of its rights or obligations under this Agreement to an
         Affiliate. Nothing in this Section 9.0 shall preclude the transfer of a
         party's rights and obligations under this Agreement in conjunction with
         a merger in which such party is not the surviving entity.

10.0     GENERAL PROVISIONS.

10.1     Section 3.6, Section 4.0, Section 7.0, and Section 11.0 shall survive
         the termination of this Agreement for any reason.

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

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

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

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

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

11.0     DISPUTE RESOLUTION:

11.1     GOVERNING LAW. This Agreement, including, without limitation, the
         interpretation, performance, enforcement, breach or termination thereof
         and any remedies relating thereto, shall be governed by and construed
         in accordance with the laws of the State of New York, United States of
         America, as applied to agreements executed and performed entirely in
         the State of New York, without regard to conflicts of law rules.

                                       10
<PAGE>

11.2     INTERNAL REVIEW. In the event that a dispute, difference, claim,
         action, demand, request, investigation, controversy, threat, Kos
         request or request for testimony or information or other question
         arises pertaining to any matters which arise under, out of, in
         connection with, or in relation to this Agreement (a "Dispute") and
         either party so requests in writing, prior to the initiation of any
         formal legal action, the Dispute will be submitted to the Chief
         Executive Officers of Kos and Quintiles Corp. For all Disputes referred
         to the Chief Executive Officers, the Chief Executive Officers shall use
         their good faith efforts to meet at least two times in person and to
         resolve the Dispute within ten (10) days after such referral.

11.3     ARBITRATION.

         (a)      If the parties are unable to resolve any Dispute under Section
                  11.2, then either party may by election within ten (10) days
                  after the end of the period set forth in Section 11.2, require
                  the matter to be settled by final and binding arbitration by
                  sending written notice of such election to the other party
                  clearly marked "Arbitration Demand". Thereupon such Dispute
                  shall be arbitrated in accordance with the terms and
                  conditions of this Section 11.3. Notwithstanding the
                  foregoing, either party may apply to a court of competent
                  jurisdiction for a temporary restraining order, a preliminary
                  injunction, or other equitable relief to preserve the status
                  quo or prevent irreparable harm.

         (b)      The arbitration panel will be composed of three arbitrators,
                  one of whom will be chosen by Kos, one by Quintiles, and the
                  third by the two so chosen. If both or either of Kos or
                  Quintiles fails to choose an arbitrator or arbitrators within
                  fourteen (14) days after receiving notice of commencement of
                  arbitration, or if the two arbitrators fail to choose a third
                  arbitrator within fourteen (14) days after their appointment,
                  the American Arbitration Association shall, upon the request
                  of both or either of the parties to the arbitration, appoint
                  the arbitrator or arbitrators required to complete the panel.
                  The arbitrators shall have reasonable experience in the matter
                  under dispute. The decision of the arbitrators shall be final
                  and binding on the parties, and specific performance giving
                  effect to the decision of the arbitrators may be ordered by
                  any court of competent jurisdiction.

         (c)      Nothing contained herein shall operate to prevent either party
                  from asserting counterclaim(s) in any arbitration commenced in
                  accordance with this agreement, and any such party need not
                  comply with the procedural provisions of this Section 11.3 in
                  order to assert such counterclaim(s).

         (d)      The arbitration shall be filed with the office of the American
                  Arbitration Association ("AAA") located in New York, New York
                  or such other AAA office as the parties may agree upon
                  (without any obligation to so agree). The arbitration shall be
                  conducted pursuant to the Commercial Arbitration Rules of AAA
                  as in effect at the time of the arbitration hearing, such
                  arbitration to be completed in a sixty (60) day period. In
                  addition, the following rules and procedures shall apply to
                  the arbitration.

                                       11
<PAGE>

         (e)      The arbitrators shall have the sole authority to decide
                  whether or not any Dispute between the parties is arbitrable
                  and whether the party presenting the issues to be arbitrated
                  has satisfied the conditions precedent to such party's right
                  to commence arbitration as required by this Section 11.3.

         (f)      The decision of the arbitrators, which shall be in writing and
                  state the findings the facts and conclusions of law upon which
                  the decision is based, shall be final and binding upon the
                  parties, who shall forthwith comply after receipt thereof.
                  Judgment upon the award rendered by the arbitrator may be
                  entered by any competent court. Each party submits itself to
                  the jurisdiction of any such court, but only for the entry and
                  enforcement to judgment with respect to the decision of the
                  arbitrators hereunder.

         (g)      The arbitrators shall have the power to grant all legal and
                  equitable remedies (including, without limitation, specific
                  performance) and award compensatory damages provided by
                  applicable law, but shall not have the power or authority to
                  award punitive damages. No party shall seek punitive damages
                  in relation to any matter under, arising out of, or in
                  connection with or relating to this Agreement in any other
                  forum.

         (h)      The parties shall bear their own costs in preparing for and
                  participating in the resolution of any Dispute pursuant to
                  this Section 11.3, and the costs of the arbitrator(s) shall be
                  equally divided between the parties; provided, however, that
                  each party shall bear the costs incurred in connection with
                  any Dispute brought by such party that the arbitrators
                  determine to have been brought in bad faith.

                                       12
<PAGE>

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

PHARMABIO DEVELOPMENT, INC.                KOS PHARMACEUTICALS, INC.

By:     /s/ Ronald J. Wooten               By:     /s/ Adrian Adams
        ----------------------------               ----------------------------

Name:   Ronald J. Wooten                   Name    Adrian Adams
        ----------------------------               ----------------------------

Title:  President                          Title:  President and COO
        ----------------------------               ----------------------------

INNOVEX LP

By:     /s/ Kevin D. Overs
        ----------------------------

Name:   Kevin D. Overs
        ----------------------------

Title:  Chief Financial Officer
        ----------------------------

                                       13
<PAGE>

                                  Schedule 3.5

         1. INTELLECTUAL PROPERTY. Kos owns or has valid and enforceable rights
to use all Intellectual Property (as defined below) necessary to conduct Kos'
business as described in the SEC Reports (as defined below) including without
limitation to develop, commercialize, market, make and distribute Niaspan and
Advicor as described in the SEC reports (collectively, the "Kos Intellectual
Property"). To the knowledge of Kos, none of the Kos Intellectual Property
infringes, misappropriates or makes any unauthorized use of any Intellectual
Property of any other person. Kos has received no notice or other communication
of any actual, alleged, or potential infringement, misappropriation or
unauthorized use of Intellectual Property owned or used by any other person. To
the knowledge of Kos, no person is infringing, misappropriating or making any
unauthorized use of any Kos Intellectual Property. Kos has not entered into any
agreement or arrangement, and Kos is not subject to any judgment, order or
decree of any court or governmental or regulatory body limiting Kos' ability to
exploit freely the Kos Intellectual Property or to transact business in any
market with any person. There is no pending or, to the knowledge of Kos,
threatened action, claim, suit, proceeding or investigation before any court or
any governmental or regulatory body challenging the validity, scope, ownership,
or right to use the Kos Intellectual Property, except for an opposition
proceeding that has been filed with the Trademark Trial and Appeal Board of the
U.S. Patent and Trademark Office objecting to the application for registration
of the Advicor(TM) trademark. There are no actions, claims, suits or proceedings
by Kos against any other person regarding the Kos Intellectual Property or the
Intellectual Property of such person. Kos is not aware of any Intellectual
Property owned or controlled by any other person, or of any facts, circumstances
or events, that would materially impair or prevent Kos from developing,
commercializing, marketing, making and distributing Niaspan and Advicor as
contemplated by the SEC Reports, except as described in the SEC Reports.
"Intellectual Property" shall mean all material: trade, business and product
names; trademarks; service marks; copyrights; patents; discoveries; trade
secrets; business and technical information; proprietary compilations of data or
information; know-how; inventions; formulas and techniques; methods; regulatory
filings; computer software; all intellectual property rights, registrations,
licenses and applications pertaining to any of the foregoing; and all related
documentation and goodwill. "SEC Reports" shall mean the following reports filed
by Kos with the Securities and Exchange Commission: Form 10-K for the fiscal
year ended December 31, 2000; Form 10-Q for the quarterly period ended September
30, 2001; and any documents filed with the SEC after September 30, 2001 and
prior to the date of this Agreement.

         2. CONTRACTS. All of the contracts and agreements of Kos described in
the SEC Reports (the "Material Contracts"), including without limitation
regarding Niaspan and Advicor, are in full force and effect, valid and binding,
and enforceable in accordance with their terms, in all material respects. Kos is

                                       14
<PAGE>

not and, to the knowledge of Kos, no other party is in violation, breach or
default of any Material Contract in any material respect or in any manner that
would permit a party to terminate such Material Contract. To the knowledge of
Kos, no event or condition exists or has occurred which would permit a party to
terminate any Material Contract. Kos is not a party to any agreement or
arrangement regarding the promotion by any other person of Niaspan or Advicor
and, without limiting the generality of the foregoing, any such agreement
between Kos and DuPont Pharmaceuticals Company or any affiliate thereof has been
terminated or expired. The execution, delivery and performance by Kos of this
Agreement will not violate or conflict in any material respect with any
agreement or instrument to which the Kos is a party or by which Kos or its
properties is bound.

         3. Product Launch. Advicor will be in a position to be launched,
including all reasonable components of the distribution, manufacturing and
supply chain, by February 1, 2002.; and Kos shall pursue the launch of Advicor
no later than such date.

                                       15

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