Document:

CONFIDENTIAL TREATMENT

                                                             EXECUTION VERSION

                               EXHIBIT 10.34.1

                           ASSET PURCHASE AGREEMENT

                                BY AND BETWEEN

                   AVENTIS PHARMACEUTICALS PUERTO RICO INC.

                                     and

                                INYX USA, LTD.

                              DECEMBER 15, 2004

* * * Confidential material redacted and filed separately with the Commission.
<PAGE>

CONFIDENTIAL TREATMENT

                           ASSET PURCHASE AGREEMENT

            THIS  ASSET  PURCHASE  AGREEMENT  is  made as of the  15th  day of
December,  2004, by and between  Aventis  Pharmaceuticals  Puerto Rico Inc., a
Delaware  corporation  ("Seller"),  and Inyx USA, Ltd., an Isle of Man limited
corporation ("Purchaser")

                                 WITNESSETH:

            WHEREAS,  Seller is engaged in the  manufacture of  pharmaceutical
products at its plant located in Manati, Puerto Rico (the "Business"); and

            WHEREAS,  Purchaser  desires to purchase  the  Acquired  Assets as
defined herein and to assume the Assumed  Liabilities as defined  herein,  and
Seller desires to sell,  transfer and assign to Purchaser the Acquired  Assets
and the Assumed Liabilities,  all upon the terms and subject to the conditions
set forth in this Agreement (the "Purchased Business");

            NOW,  THEREFORE,  in  consideration  of  the  premises  and of the
respective representations,  warranties, covenants, agreements, and conditions
contained  herein,  and  intending  to be  legally  bound  hereby,  Seller and
Purchaser agree as follows:

                                  ARTICLE I
                                 DEFINITIONS

Section 1.1.      Certain  Definitions.  In this  Agreement and any Exhibit or
Schedule  hereto,   the  following   capitalized   terms  have  the  following
respective meanings:

            "Acquired  Assets"  means the  following  assets,  properties  and
rights of Seller (other than Excluded Assets) existing at the Effective Time:

(a)   the Facility;

(b)   the Tangible Personal Property;

(c)   the Purchased Inventory

(d)   subject to Section 7.6, Seller's rights under the Transferred Contracts;

(e)   the Books and Records  pertaining to the Purchased  Business,  including
(i) architectural  plans  and  drawings,   construction  plans  and  drawings,
surveys,   construction  contracts,   maintenance  records,   (ii) all  vendor
materials,  operating  manuals,  training  documents and similar documents and
materials pertaining to the Acquired Assets,  (iii) all environmental studies,
(iv) all  communications,  notices  and  similar  documents  with or from  any
Governmental  or Regulatory  Authority  pertaining  to the Purchased  Business
(including  all  communications  related to any Taxes which  pertain to any of
the  Purchased  Business),  (v) all  documents  describing  the results of any
audit or  other  review  or  analysis  of the  Purchased  Business,  including
automation  or computer  systems  related to the operation  thereof,  (vi) all
Facility   equipment  and  computer   system   qualification   and  validation
documents,  excluding  those  deemed  Seller  proprietary  systems  and  those
specifically  excluded under the  Transition  Services  Agreement,  (vii)  all
employee and  personnel  records of employees  hired by Purchaser  pursuant to
Article VIII,  and (viii) copies of all insurance  policies and communications
with all  companies  providing  insurance  on the Real  Property  or  Tangible
Personal  Property  (including  all  reports  and  documents  related  to  any
insurance  audits,   inspections  or  analyses  and  all  records  related  to
installation,  process and operational  qualifications related to the Tangible
Personal  Property)  (collectively,  the "Manati  Business Books and Records")
(it being  acknowledged that Seller shall be entitled to retain and use copies
of the  Manati  Business  Books  and  Records  provided  that the use does not
otherwise violate Seller's covenants under this Agreement);

(f)   the Transferred Intangible Property;

(g)   to the extent their  transfer is permitted  under  applicable  Laws, all
Permits  utilized by Seller  exclusively  or  primarily  in the conduct of the
Business,  including the Permits  listed in  Section 5.1(k)  of the Disclosure
Schedules attached hereto; and

(h)   all  warranties,  claims and similar  rights with  respect to any of the
foregoing assets.

               (i) the  prepaid  expenses  listed  in  Section  1.1(i)  of the
Disclosure Schedule (the "Prepaid Expenses");

               (j) the motor  vehicles  owned or  leased  by Seller  listed in
Section 1.1(j) of the Disclosure Schedule (the "Vehicles");

               (k) the security  deposits  deposited by or on behalf of Seller
listed  in  Section   1.1(k)  of  the   Disclosure   Schedule  (the  "Security
Deposits"); and

               (l) all  designs,  construction  drawings,  plans,  blueprints,
bills of  material,  flowsheets,  specifications,  plan  sheets,  parts lists,
instruction manuals, all documents related to regulatory  compliance,  quality
and manufacturing records (including,  without limitation,  standard operating
procedures,  validation  master plans and change  controls)  and device master
records  relating to the Acquired Assets,  but  specifically  excluding any of
the  foregoing  to the  extent  related  solely to  products  that will not be
manufactured at the Facility after the Closing (the "Instruction Materials").

            "Affiliate"  means,  as to any Person,  any other  Person or group
acting in  concert  in respect of the  Person  that,  directly  or  indirectly
through one or more  intermediaries,  controls,  is controlled by, or is under
common control with that Person.  For purposes of this  definition,  "control"
(including,  with correlative  meanings,  the terms "controlled by" and "under
common  control  with"),  as used  with  respect  to any  Person  or  group of
Persons, means possession,  directly or indirectly,  of the power to direct or
cause the  direction of the  management  and  policies of the Person,  whether
through the ownership of voting securities, by contract, or otherwise.

* * * Confidential material redacted and filed separately with the Commission.
<PAGE>

CONFIDENTIAL TREATMENT

             "Agreement" means this Asset Purchase  Agreement,  the Disclosure
Schedules and the Schedules and Exhibits hereto, as originally  executed or as
amended as provided herein.

            "APL" means Aventis Pharma Ltd.

            "Assumed  Liabilities"  means all Liabilities of Seller  described
in Section  2.2 or  otherwise  specifically  assumed by  Purchaser  under this
Agreement.

            "Assumption    Agreement"    means   the   Assumption    Agreement
substantially in the form attached hereto as Exhibit 1.

            "Azmacort Assignment and Assumption  Agreement" means the Azmacort
Assignment and Assumption Agreement  substantially in the form attached hereto
as Exhibit 10.

            "Azmacort  Supply  Agreement" has the meaning set forth in Section
7.9(b).

            "Azmacort Royalty" has the meaning set forth in Section 7.9(b).

            "Benefit Plans" has the meaning set forth in Section 5.1(g).

            "Best  Efforts"  means the efforts that a prudent Person who wants
to  achieve  the  result  in  question  would  take and that are  commercially
reasonable under the circumstances.

            "Books and Records" shall mean records,  files,  equipment manuals
and   maintenance    records,    building   and   equipment   blueprints   and
specifications,  drawings  and  designs,  real  estate  surveys  and  reports,
computer software, and other data.

            "Business" has the meaning set forth in the recitals.

            "Claim" has the meaning set forth in Section 6.2(a).

            "Closing" means the consummation of the transactions  described in
Article IV of this Agreement.

            "Closing  Date" means March 31, 2005 or such other earlier date as
is agreed upon by the parties.

            "COBRA" has the meaning set forth in Section 8.2.

            "Code" means the Internal Revenue Code of 1986, as amended.

            "Commonwealth" means the Commonwealth of Puerto Rico.

            "Confidentiality  Agreement"  has the meaning set forth in Section
7.8.

            "Contemplated   Transactions"   means  all  of  the   transactions
contemplated  by this  Agreement  and the Related  Agreements,  including  the
following actions:

                  (a)  the  sale  of  the  Purchased  Business  by  Seller  to
Purchaser; and,

                  (b) the execution,  delivery, and performance of the Related
Agreements.

            "Contract" means any written agreement,  lease, license,  purchase
order, commitment for the purchase of goods, or other contract,  instrument or
arrangement  to which  Seller is a party and which  relates  to the  Purchased
Business.

            "Core  Representations  and  Warranties" has the meaning set forth
in Section 6.3.

            "Damages"  means  all  Liabilities,  damages,  losses,  penalties,
fines, forfeitures,  assessments, claims, suits, proceedings,  investigations,
actions,  demands,  causes of action,  judgments,  awards, taxes, and expenses
including court costs,  reasonable attorneys',  consultants' and experts' fees
and other  costs  and  expenses  incident  to or  arising  out of any claim or
occurrence  or  investigation  or the  defense  of  any  claim  or  occurrence
(whether or not litigation has commenced).

            "Disclosure  Schedules"  means the disclosure  schedules of Seller
as specified  in this  Agreement  that are attached to this  Agreement or that
are  subsequently  delivered  to  Purchaser  pursuant  to the  terms  of  this
Agreement.

            "Dispute" has the meaning set forth in Section 9.2.

            "Dispute Notice" has the meaning set forth in Section 9.2(a).

             "Dollars" means U.S. dollars.

            "Effective  Time" means 12:00  midnight,  Puerto Rico time, on the
Closing Date.

            "Employment  Costs" means all costs  incurred  with respect to any
employee, including wages, salaries, benefits,  employment taxes, claims by an
employee  and all costs  incurred  in  connection  with such  claims,  and all
similar costs.

            "Environmental  Assessments"  has the meaning set forth in Section
6.5(a)(ii).

            "Environmental   Claims"   has  the   meaning  set  forth  in  the
definition of "Environmental Liabilities".

"Environmental Laws" shall include, without limitation, the following Laws:
 (1) Comprehensive Environmental Response, Compensation, and Liability Act of
1980, as amended by the Superfund Amendments and Reauthorization Act of 1986;
(2) Solid Waste Disposal Act, as amended by the Resource Conservation and
Recovery Act of 1976, as amended by the Hazardous and Solid Waste Amendments
of 1984; (3) Federal Water Pollution Control Act of 1972, as amended by the
Clean Water Act of 1977, as amended; (4) Toxic Substances Control Act of
1976, as amended; (5) Emergency Planning and Community Right-to-Know Act  of
1986; (6) Clean Air Act of 1966, as amended by the Clean Air Act Amendments
of 1990;

* * * Confidential material redacted and filed separately with the Commission.
<PAGE>

CONFIDENTIAL TREATMENT

             (7) National  Environmental  Policy Act of 1970, as amended;  (8)
Rivers and Harbors  Act of 1899,  as amended;  (9)  Endangered  Species Act of
1973,  as  amended;  (10)  Occupational  Safety  and  Health  Act of 1970,  as
amended;  (11) Safe Drinking  Water Act of 1974, as amended,  (12) Puerto Rico
Public Policy  Environmental  Act;  (13) Environmental  Emergencies  Fund Act;
(14) The  Regulation for Control of Hazardous  Waste;  (15) the  Non-Hazardous
Solid Waste  Management  Regulation;  (16) the  Regulation  for the Control of
Atmospheric    Pollution;    (17) Water    Quality    Standards    Regulation;
(18) Underground  Injection Control Regulation;  (19) Underground Storage Tank
Control  Regulation;  and (20) all Laws of the United States, the Commonwealth
or  any  political  subdivision  of the  United  States  or  the  Commonwealth
relating  to the  regulation  or  protection  of  human  health,  safety,  the
environment,  natural resources (including,  without limitation,  ambient air,
surface water,  groundwater,  wetlands,  land,  surface or subsurface  strata,
wildlife, aquatic species or vegetation),  including, without limitation, Laws
relating  to  emissions,   discharges,  releases  or  threatened  releases  of
Hazardous  Materials or  otherwise  relating to the  manufacture,  processing,
distribution,  use,  treatment,  storage,  disposal,  transport or handling of
Hazardous Materials.

            "Environmental  Liabilities" means all Liabilities arising from or
under any Environmental  Law or any Permit issued under  Environmental Law and
consisting of or relating to:

(a)   any environmental  matters or conditions  (including on-site or off-site
contamination and regulation of chemical substances or products);

(b)   fines,   penalties,    judgments,   awards,   settlements,    legal   or
administrative proceedings,  surcharges,  damages, losses, claims, demands and
response,  investigative,  remedial,  or inspection costs and expenses arising
under  Environmental  Law (including any claims  involving  liability in tort,
strict, absolute or otherwise),  liens, notices of noncompliance or violation,
or legal fees or costs of  investigations  or proceedings  relating in any way
to any  Environmental Law or any Permit issued under such  Environmental  Law,
or arising from the presence or release (or alleged  presence or release) into
the environment of any Hazardous  Materials  (hereinafter  also referred to as
"Environmental  Claims")  including,  without  limitation,  all  Environmental
Claims,  regardless  of  the  merit  of  such  Environmental  Claims,  by  any
governmental  or regulatory  authority or by any third party for  enforcement,
clean  up,  removal   response,   remedial,   or  other  actions  or  damages,
contribution,  indemnification,  cost  recovery,  compensation  or  injunctive
relief  pursuant to any  Environmental  Law or any alleged injury or threat of
injury to health, safety or the environment;

(c)   financial  responsibility  under  Environmental Law for cleanup costs or
corrective   action,   including   any   investigation,    cleanup,   removal,
containment,  or other  remediation or response actions required by applicable
Environmental Law and for any natural resource damages;

(d)   any other  compliance,  corrective,  investigative or remedial  measures
required under Environmental Law; or

(e)   any breach of any of the  representations  and  warranties of Seller set
forth in Section 5.1(m).

            "Environmental  Liabilities  Cap"  has the  meaning  set  forth in
Section 6.5(d).

            "ERISA"  means the  Employee  Retirement  Income  Security  Act of
1974, as amended, and the rules and regulations promulgated thereunder.

            "Escrow Account" has the meaning set forth in Section 8.3(b)(i).

            "Excluded  Assets"  means all  assets of Seller  not  specifically
included among the Acquired Assets, including the following:

(a)   the  corporate  charter,  qualifications  to do  business  as a  foreign
corporation,   arrangements   with  registered   agents  relating  to  foreign
qualifications,  taxpayer  and other  identification  numbers,  seals,  minute
books,  stock transfer books and other documents  relating to the organization
and existence of Seller as a corporation;

(b)   all  cash,  rights  in bank  accounts,  certificates  of  deposit,  bank
deposits,  cash  equivalents,   investment  securities  and  checks  or  other
payments  received by Seller  (including  received in lock boxes) by the close
of business on the Closing Date;

(c)   the Receivables;

(d)   the Inventory, except for the Purchased Inventory;

(e)   all tax returns  and tax records  (with the  exception  of property  tax
returns and property tax records  related to the  Purchased  Business) and any
rights to tax  refunds  or  credits  and  current  and  deferred  tax  assets,
specifically  including  Seller's  rights to net operating  loss carry forward
applicable  to  the  Business,   the   Facility,   or  otherwise,   including,
specifically,  tax credits in the aggregate  amount of $7,194,717 as set forth
in that certain  Closing  Agreement  dated June 30, 2004 by and among  Seller,
Aventis  Pharmaceuticals  Inc.,  and  the  Secretary  of the  Treasury  of the
Commonwealth;

(f)   all assets held by or on behalf of Seller's employee benefit plans;

(g)   Seller's rights under this Agreement and the Related Agreements;

(h)   the Excluded Books and Records;

(i)   all  insurance   policies  and  contracts  and  all  rights   thereunder
(including but not limited to, the right to make claims  thereunder and to the
proceeds thereof);

(j)   those assets listed on Exhibit 2;

* * * Confidential material redacted and filed separately with the Commission.
<PAGE>

CONFIDENTIAL TREATMENT

(k)   all  Intangible  Property with the exception of  Transferred  Intangible
Property; and

(l)   loans to third parties and affiliates of Seller.

            "Excluded Books and Records" means all Books and Records  relating
to the Excluded Assets or Excluded Liabilities.

            "Excluded  Liabilities"  means,  except as otherwise  set forth in
this   Agreement,   all   Liabilities   of  Seller   other  than  the  Assumed
Liabilities.

            "Facility"  means the Real  Property,  personal  property  that is
attached to the Real Property and classified as real property by destiny,  and
all improvements located thereon and all rights related thereto.

            "GAAP"  means  generally  accepted  accounting  principles  as  in
effect in the United States on the date of this Agreement.

            "General  Assignment" means the General  Assignment  substantially
in the form attached hereto as Exhibit 3.

            "General  Liability  Cap" has the  meaning  set  forth in  Section
6.4(b)(i).

            "Governmental or Regulatory Authority" means any court,  tribunal,
arbitrator,  authority, agency, commission,  official or other instrumentality
of the United States or the Commonwealth,  including any political subdivision
of the United States or the Commonwealth.

            "Hazardous  Materials"  means any substance  that has been defined
by  applicable  Environmental  Law  to be  radioactive,  toxic,  hazardous  or
otherwise a pollutant or  contaminant,  including  PCBs,  asbestos,  petroleum
products or any fraction thereof,  urea-formaldehyde and all substances listed
as a "hazardous  substance," "hazardous waste," "hazardous material" or "toxic
substance" or words of similar import, under any Environmental Law.

            "Indemnified Party" has the meaning set forth in Section 6.2(a).

            "Indemnifying Party" has the meaning set forth in Section 6.2(a).

            "Intangible  Property"  means all of the  following  to the extent
related to the operation of the Purchased Business:

(a)   computer  software,  data and documentation  related to the operation of
the Tangible  Personal  Property,  excluding  those deemed Seller  proprietary
systems  and  those  specifically   excluded  under  the  Transition  Services
Agreement;

(b)   know-how of all employees hired by Purchaser  pursuant to  Article VIII;
and,

* * * Confidential material redacted and filed separately with the Commission.
<PAGE>

CONFIDENTIAL TREATMENT

(c)   other  rights  relating  to  any of the  foregoing  (including  remedies
against  infringements  thereof and rights of protection  of interest  therein
under the Laws of all jurisdictions).

            "Inventory"  means  all  inventory  owned  by  Seller  as  of  the
Effective  Time including all  inventories of raw materials,  work-in-process,
finished  goods,  supplies,  parts  and  packaging  materials  and  in-transit
inventory,  but inventory does not include replacement parts,  supplies or any
assets  related  to  the  operation  or  maintenance  of the  Facility  or the
Acquired Assets which shall be deemed Tangible Personal Property.

            "IOCAM" means the Seller's  Industrial  Operations Cost Accounting
Manual.

            "KOS/Aeropharm  Consent"  has the  meaning  set  forth in  Section
7.9(b).

            "Laws" means all laws, statutes,  rules,  regulations,  ordinances
and other pronouncements having the effect of law.

            "Liability"  or   "Liabilities"   means  any  or  all  obligations
(whether to make  payments,  to give  notices or to perform or not perform any
action),  commitments,   contingencies  and  other  liabilities  of  a  Person
(whether  known  or  unknown,  asserted  or not  asserted,  whether  absolute,
accrued,   contingent,   fixed  or  otherwise,   determined  or  determinable,
liquidated or unliquidated, and whether due or to become due).

            "Lien"   means   any   mortgage,    pledge,   security   interest,
hypothecation,  assignment, encumbrance, lease, lien, option, right of use and
other rights of other Persons, any conditional sale contract,  title retention
contract, or other encumbrance of any kind.

            "Manati  Business  Books and Records" has the meaning set forth in
the definition of Acquired Assets.

            "Material  Adverse  Change" means any material  adverse  change to
the  condition  of the  Acquired  Assets or the  Facility  from a financial or
operational perspective,  as the case may be; provided that changes within the
ordinary course of business cannot  individually or collectively  constitute a
material adverse change.

            "Material Contracts" has the meaning set forth in Section 5.1(j).

            "Notice" has the meaning set forth in Section 9.3.

            "Order"   means  and   includes   any  writ,   judgment,   decree,
injunction, award or other order of any Governmental or Regulatory Authority.

            "Permits" means all licenses, permits, authorizations,  approvals,
registrations,  franchises  and  similar  consents  granted  or  issued by any
Governmental or Regulatory Authority.

            "Permitted  Lien"  means (i) any  statutory  Lien  arising  in the
ordinary  course  of  business  by  operation  of Law  that  is not yet due or
delinquent, including real and personal property taxes not delinquent.

            "Person"   means  any   natural   person,   corporation,   general
partnership,  limited  partnership,  limited  liability  partnership,  limited
liability  company,  proprietorship,   other  business  organization,   trust,
government,   governmental   authority,   regulatory   authority,   court   or
arbitrator, or any other entity whatsoever.

            "Post  Closing  Agreement"  has the  meaning  set forth in Section
7.14.

            "Product  Supply  Agreement"  has the meaning set forth in Section
7.15.

            "Product Supply Technical  Agreement" has the meaning set forth in
Section 7.15.

            "PR Code" means the Puerto Rico Internal  Revenue Code of 1994, as
amended.

            "Prepaid  Expenses" has the meaning set forth in the definition of
Acquired Assets.

            "Purchase Price" has the meaning set forth in Section 3.1.

            "Purchased Business" has the meaning set forth in the preamble.

            "Purchased Inventory" means the Inventory  specifically  purchased
by Purchaser  with respect to which the Purchase  Price shall be adjusted,  as
described in Section 3.5.

            "Purchaser" has the meaning set forth in the preamble.

            "Purchaser  Environmental  Liabilities"  has the meaning set forth
in Section 6.5(f).

            "Purchaser  Indemnified  Parties"  has the  meaning  set  forth in
Section 6.1(a).

            "Purchaser's  Closing  Certificate"  has the  meaning set forth in
Section 4.3(a).

            "Purchaser's  Parent Company" has the meaning set forth in Section
7.17.

            "Purchaser's  Parent  Guaranty"  has  the  meaning  set  forth  in
Section 7.17.

            "Real  Property" means the parcel of real estate,  buildings,  and
structures  described on Exhibit 4,  all improvements  located thereon and all
rights related thereto.

            "Receivables"   means  the  accounts   receivable   trade,   notes
receivable  and other  receivables of Seller,  and any claim,  remedy or other
right related to the foregoing.

"Related Agreements" means all agreements, certificates, instruments or other
documents required to be executed and/or delivered pursuant to or in
connection with this Agreement by any party, including, without limitation,
the General Assignment, the Assumption

* * * Confidential material redacted and filed separately with the Commission.
<PAGE>

CONFIDENTIAL TREATMENT

            Agreement,  the Transition  Services  Agreement,  the Post-Closing
Agreement,   the  Product  Supply  Agreement,  the  Product  Supply  Technical
Agreement,  Purchaser's Parent Guaranty, Seller's Parent Guaranty, the Tooling
Access  Letter,  the Azmacort  Assignment and  Assumption  Agreement,  and the
KOS/Aeropharm Consent.

            "Restricted  Product"  means any product or  substance  having the
active  pharmaceutical  ingredient  Triamcinolone  Acetonide that is indicated
for intranasal administration.

            "Respective Restricted Territories" means for the "Restricted
Products" all countries of the world.

            "Seller" has the meaning set forth in the preamble.

            "Seller  Indemnified   Parties"  has  the  meaning  set  forth  in
Section 6.1(b).

            "Seller's  Closing  Certificate"  has the  meaning  set  forth  in
Section 4.2(a).

            "Seller's  Parent  Company"  has the  meaning set forth in Section
7.18.

            "Seller's  Parent  Guaranty"  has the meaning set forth in Section
7.18.

            "Seller's  Savings  Plan" has the  meaning  set  forth in  Section
8.1(c).

            "Separation Benefits" has the meaning set forth in Section 8.3(a).

             "Separation  Plan"  means the Aventis  Pharmaceuticals  Associate
Separation Plan effective March 15, 2004, attached hereto as Exhibit 5.

            "Services  and Access  Rights  Agreement"  means the  Services and
Access Rights  Agreement dated December 2, 2004, by and between  Purchaser and
Seller regarding  Purchaser's  access to the Facility and services provided to
Purchaser by Seller prior to the Effective Time.

            "Sharing Period" has the meaning set forth in Section 6.5(c).

            "Tangible  Personal  Property"  means  the  equipment,  furniture,
fixtures  and  other  personal   property   listed  on  Exhibit  6,  including
replacement  parts,  supplies  and any  other  assets  that are used by Seller
solely in  connection  with the  operation  or  maintenance  of the  Purchased
Business,  including  personal  property  subsequently  acquired by Seller and
used solely in connection with the Purchased Business.

            "Taxes"  means all United  States  federal,  state,  Commonwealth,
municipal,  foreign,  and other net  income,  gross  income,  gross  receipts,
social security,  sales,  use, ad valorem,  franchise,  withholding,  payroll,
employment,  excise,  property,  and other taxes,  and Transfer Taxes together
with any interest and any penalties,  additions to tax, or additional  amounts
with respect thereto, and the term "Tax" means any one of the foregoing Taxes.

* * * Confidential material redacted and filed separately with the Commission.
<PAGE>

CONFIDENTIAL TREATMENT

             "Tax Grant" means Seller's  industrial tax exemption  grant under
the Puerto Rico Tax Incentives Act of 1998, as amended.

            "Tax   Returns"   means  all   returns,   declarations,   reports,
statements,  schedules,  notices,  forms or  other  documents  or  information
required to be filed in respect of the determination,  assessment,  collection
or   payment   of  any  Tax  or  in   connection   with  the   administration,
implementation  or enforcement of any legal  requirement  relating to any Tax,
and the term "Tax Return" means any one of the foregoing Tax Returns.

            "Time of Closing" has the meaning set forth in Section 4.1.

            "Tooling  Access  Letter"  has the  meaning  set forth in  Section
7.9(c).

            "Transferred   Contracts"   has   the   meaning   set   forth   in
Section 5.1(j)(i)(E).

            "Transferred  Intangible  Property"  has the  meaning set forth in
Section 5.1(r).

            "Transition  Services  Agreement"  means the  Transition  Services
Agreement of even date  herewith  entered into  between  Purchaser  and Seller
described  in Section  7.10  hereof  and  substantially  in the form  attached
hereto as Exhibit 7.

            "Valois" means Valois S.A.S.

            "WARN" has the meaning set forth in Section 8.4.

                                  ARTICLE II
                       PURCHASE AND SALE AND ASSUMPTION

Section 2.1.      Purchase  and Sale of  Purchased  Business.  Subject  to the
terms and  conditions  set forth in this  Agreement,  at the Time of  Closing,
Seller  shall  sell,  transfer,  convey,  assign,  deliver  and  set  over  to
Purchaser,  and Purchaser shall purchase and accept, all of the right,  title,
benefit and interest of Seller in, to and under the Purchased  Business,  free
and  clear  of all  Liens  other  than  Permitted  Liens.  In no  event  shall
Purchaser  acquire any right,  title,  benefit or interest in, to or under any
of the Excluded Assets.

Section 2.2.      Assumed  Liabilities.  Subject  to the terms and  conditions
set forth in this  Agreement,  at the Time of Closing,  Purchaser shall assume
and agrees to pay, perform and discharge when due the Assumed  Liabilities set
forth  in  Section  2.2 of  the  Disclosure  Schedules.  Purchaser  shall  not
assume, and Seller shall retain, the Excluded Liabilities.

                                 ARTICLE III
                                PURCHASE PRICE

Section 3.1.      Purchase  Price.   The  purchase  price  for  the  Purchased
Business   (the   "Purchase   Price")   shall  be  Fifteen   Million   Dollars
($15,000,000),  subject to adjustment  on the Closing Date as provided  herein
and in  particular  in Sections  3.5 and 8.3,  and  allocated  as set forth in
Section 3.1 of the Disclosure Schedules.

Section 3.2.      Payment  of the  Purchase  Price.  At the  Time of  Closing,
Purchaser  shall  pay  the  Purchase  Price  to  Seller  by wire  transfer  of
immediately  available  funds to an  account  specified  in writing by Seller,
provided  that a portion of the  Purchase  Price shall be paid into the Escrow
Account established pursuant to Section 8.3.

Section 3.3.      Taxes   and    Assessments.    Purchaser   shall   pay   all
non-delinquent  property Taxes,  special  assessments,  and any other taxes or
fees related to the Facility  which are payable  subsequent to the Closing and
on a going-forward  basis.  Seller shall pay all real estate taxes and special
assessments  due and payable with respect to the Facility  which are due prior
to the Closing  Date or which are  attributable  to all  periods  prior to the
Closing  Date.  Real Estate  taxes and  assessment  will be  prorated  between
Seller and Purchaser as of the Closing Date.

Section 3.4.      Internal  Revenue  Stamps and  Recording  Fees.  Seller will
bear the cost of all  documentary  stamps  required by law to be  cancelled on
the  original  deed of purchase  and sale  transferring  the Real  Property to
Purchaser.  Purchaser shall bear the cost of all  documentary  stamps required
to be cancelled on the Deed or Purchase and Sale  conveying  the Real Property
to Purchaser  and  transfer and  recording  fees.  Purchaser  shall select the
Notary and bear the notarial tariff.

Section 3.5.      Purchased Inventory.    Section   3.5  of   the   Disclosure
Schedules  sets forth the  Purchased  Inventory.  The parties  shall value the
Purchased  Inventory based on a physical count of such inventory as of the day
prior to the Closing Date,  and computed in accordance  with IOCAM.  The value
of all Purchased Inventory found obsolete,  damaged or  non-merchantable  will
be  deducted  from such  count.  At the Time of Closing,  the  Purchase  Price
shall  be  increased  by the  amount  by  which  the  aggregate  value  of the
Purchased   Inventory  exceeds  One  Million  Five  Hundred  Thousand  Dollars
($1,500,000),  or  decreased  by the amount by which One Million  Five Hundred
Thousand  Dollars  ($1,500,000)  exceeds the aggregate  value of the Purchased
Inventory.

* * * Confidential material redacted and filed separately with the Commission.
<PAGE>

CONFIDENTIAL TREATMENT

            Section 3.6 Tax  Grant.   Seller   shall   cooperate   fully  with
Purchaser and support Purchaser's  application for approval of the transfer of
Seller's Tax Grant to  Purchaser,  including  joining in such  application  if
required  by law.  Purchaser  shall be  responsible  for all  filing  fees and
other costs in connection with such application.

                                  ARTICLE IV
                               CLOSING MATTERS

Section 4.1.      Closing.  The Closing of the transactions  described in this
Agreement  will take place at 10:00 a.m.  (local time) (the "Time of Closing")
on the Closing  Date at the offices of  McConnell  Valdes in San Juan,  Puerto
Rico,  or at such other time,  date,  and place as the parties may agree.  All
documents  delivered and all  transactions  consummated at the Closing will be
deemed for all purposes to have been  delivered and  consummated  effective as
of the Effective Time.

Section 4.2.      Purchaser's   Conditions  to  Closing.   The  obligation  of
Purchaser to effect the Closing  shall be subject to the  satisfaction  of the
following  conditions at or prior to the Time of Closing,  any or all of which
conditions may be waived by Purchaser in its sole and absolute discretion:

               (a)      Accuracy   of    Representations,    Warranties    and
Agreements.  As of the Time of  Closing,  there  shall  have been no  material
adverse change to the  representations  and  warranties  made by Seller herein
that would affect Seller's ability to consummate the transaction  contemplated
herein.  Seller  shall  have  performed  and  complied  with  all  agreements,
covenants  and  conditions  required by this  Agreement  to be  performed  and
complied  with by it at or prior to the Closing  Date,  and Seller  shall have
delivered to Purchaser a certificate  certifying that the conditions set forth
in this  Section 4.2(a)  are satisfied in all respects (the "Seller's  Closing
Certificate").

               (b)      Consents  and  Approvals.  As of the Time of  Closing,
Seller  shall have  obtained all consents  and  approvals  from third  parties
required  for  it  to  consummate  the  sale  of  the  Purchased  Business  to
Purchaser.

               (c)      Litigation.    No   temporary    restraining    order,
preliminary or permanent injunction,  or cease and desist order, issued by any
Governmental  or Regulatory  Authority  preventing the transfers  contemplated
hereby or the  consummation of the Closing,  shall be in effect at the Time of
Closing,  and  no  proceeding  by any  Governmental  or  Regulatory  Authority
seeking to restrict or prohibit the transfer and exchange  contemplated hereby
or the  consummation of the Closing shall be pending or threatened at the Time
of Closing.

               (d) Consents to  Assignment.  To the extent  necessary,  Seller
shall have  obtained  written  consents to the  assignment to Purchaser of all
Transferred Contracts.

               (e)      Closing  Documents.  Seller  shall have  executed  and
tendered  each of the documents to be executed and delivered by it pursuant to
Section 4.4.

               (f)      Transition  Services  Agreement.  Seller and Purchaser
shall have executed the Transition Services Agreement.

               (g)      Azmacort  Assignment  and  Assumption   Agreement  and
KOS/Aeropharm  Consent.  Purchaser and Seller shall have executed the Azmacort
Assignment  and  Assumption  Agreement,  and Seller  shall have  delivered  to
Purchaser the KOS/Aeropharm Consent.

(h)   Labor Unrest Caused by Seller.  There shall not be in effect any labor
unrest as a direct result of Seller's actions that constitutes a Material
Adverse Change.

(i)   Environmental Remediation.  Purchaser shall be reasonably satisfied
with any remediation action plan initiated by Seller in connection with
Section 6.5.

Section 4.3.      Seller's  Conditions to Closing.  The  obligations of Seller
to effect the Closing  shall be subject to the  satisfaction  of the following
conditions at or prior to the Time of Closing,  any or all of which conditions
may be waived by Seller in its sole and absolute discretion:

(a)   Accuracy of Representations,  Warranties and Agreements.  As of the Time
of  Closing,  there  shall  have  been  no  material  adverse  change  to  the
representations  and  warranties  made by  Purchaser  herein that would affect
Purchaser's  ability to consummate the transaction  contemplated  herein.  The
representations  and  warranties of Purchaser  contained  herein shall be true
and  correct on the Time of  Closing as if made again at the Time of  Closing.
Purchaser  shall have  performed and complied with all  agreements,  covenants
and  conditions  required by this  Agreement to be performed and complied with
by it at or prior to the Closing Date,  and Purchaser  shall have delivered to
Seller  a  certificate  certifying  that  the  conditions  set  forth  in this
Section 4.3(a)  are  satisfied  in  all  respects  (the  "Purchaser's  Closing
Certificate").

(b)   Consents and Approvals.  Purchaser  shall have obtained all consents and
approvals  from third parties  required for it to  consummate  the sale of the
Purchased Business to Purchaser. .

(c)   Litigation.  No temporary  restraining  order,  preliminary or permanent
injunction,  or  cease  and  desist  order,  issued  by  any  Governmental  or
Regulatory  Authority  preventing  the  transfers  contemplated  hereby or the
consummation  of the Closing,  shall be in effect at the Time of Closing,  and
no proceeding by any Governmental or Regulatory  Authority seeking to restrict
or prohibit the transfer and exchange  contemplated hereby or the consummation
of the Closing shall be pending or threatened at the Time of Closing.

(d)   Closing  Documents.  Purchaser  shall have executed and tendered each of
the documents to be executed by Purchaser pursuant to Sections 4.5 and 4.6.

               (e)      Offers of Employment.  Purchaser shall have made
offers of employment to Seller's employees as required by Article VIII.

* * * Confidential material redacted and filed separately with the Commission.
<PAGE>

CONFIDENTIAL TREATMENT

                (f) Post-Closing Agreement.  Seller and Purchaser shall have
executed the Post-Closing Agreement.

               (g) Product Supply Agreement.  Seller and Purchaser shall have
executed the Product Supply Agreement and related Product Supply Technical
Agreement.

Section 4.4.      Deliveries By Seller.  At the Time of Closing:

(a)   Seller  shall sell,  assign,  convey,  transfer and deliver to Purchaser
the Acquired  Assets in accordance  with this Agreement by (i) delivery of the
General Assignment  appropriately  completed and duly executed by Seller, (ii)
a Deed of  Purchase  and Sale in the form  attached  hereto as  Exhibit 8,  as
modified to conform to the  Survey,  duly  executed by Seller  before a Notary
Public  selected  by  Purchaser,  (iii) a  certificate  of title  (or  similar
documents)  duly  endorsed  with  respect to any  vehicles or other  equipment
included in the Acquired  Assets for which a certificate of title or origin is
required  to transfer  title and (iv) a  bill of sale for the  transfer of the
Tangible Personal Property.

(b)   Seller shall  execute and deliver such other  documents as Purchaser may
reasonably  request to evidence  and  effectuate  conveyance  of the  Acquired
Assets and Seller's obligations under this Agreement.

(c)   Seller shall deliver to Purchaser the Seller's Closing Certificate.

               (d)  Seller shall deliver to Purchaser an opinion of Seller's
counsel in form and substance reasonably satisfactory to Purchaser.

               (f)      Seller shall deliver to Purchaser the Tooling Access
              Letter.

               (g) Seller shall deliver to Purchaser the Azmacort Assignment
and Assumption Agreement and the KOS/Aeropharm Consent.

Section 4.5.      Deliveries By Purchaser.  At the Time of Closing:

(a)   Purchaser  shall  pay to  Seller  the  Purchase  Price  as  provided  in
Section 3.2.

(b)   Purchaser shall deliver to Seller the Purchaser's Closing Certificate.

               (c)  Purchaser shall deliver to Seller an opinion of
Purchaser's counsel in form and substance reasonably satisfactory to Seller.

               (d)      Purchaser shall deliver to Seller the Post-Closing
Agreement.

(e)   Purchaser shall deliver to Seller the Product Supply Agreement and
related Product Supply Technical Agreement.

Section 4.6.      Further  Assurances  and  Cooperation.  Subject to the terms
and conditions of this Agreement,  at any time and from time to time after the
Closing,  at a party's reasonable  request,  the other party shall execute and
deliver such other instruments of sale, transfer,  conveyance,  assignment and
confirmation,  and assumption,  and provide such materials and information and
take such other actions as the requesting  party may reasonably deem necessary
or  desirable  in order to more  effectively  transfer,  convey  and assign to
Purchaser  all of the  Acquired  Assets  and/or  in order to more  effectively
effect the  assumption  by Purchaser of the Assumed  Liabilities.  As and when
requested  by  Purchaser  prior to or after the  Closing  Date,  Seller  shall
provide information  regarding the Facility and the Tangible Personal Property
that is  reasonably  necessary  or  helpful  to  Purchaser  in  obtaining  all
Permits,  consents and approvals  necessary  for Purchaser to acquire,  occupy
and  operate  the  Purchased   Business  for  the  purpose  of  pharmaceutical
manufacturing.  Purchaser and Seller  further  agree to  reasonably  cooperate
with the other in the  conduct  of any audit or other  proceeding  related  to
Taxes  involving the Business.  This reasonable  cooperation  does not include
payment  of  attorneys,   accountants  or  other   professional   advisors  in
connection with such cooperation.

Section 4.7.      Post-Closing Access.    In   connection   with  any   matter
relating to any period  before,  or any period  ending on, the  Closing  Date,
Purchaser will, upon  reasonable  notice of the Seller,  permit the Seller and
its  representatives  full  access  at all  reasonable  times to the Books and
Records of the Facility (including for example,  equipment records) that shall
have been  transferred  to the Purchaser  provided that  Purchaser's  business
shall not be unreasonably  interfered with.  Purchaser  acknowledges that, due
to  the  regulatory   requirements   requiring  responses  to  inquiries  from
regulatory  authorities  to be  received  within 72 hours,  Seller may require
access to such Books and Records  urgently.  Accordingly,  if so  requested by
Seller,  Purchaser  shall  permit  Seller  to have  access  to such  Books and
Records within 24 hours of Purchaser's receipt of Seller's request,  which may
be made orally or by facsimile  transmission.  Purchaser  shall not dispose of
such Books and  Records  during the 7 year period  beginning  with the Closing
Date  without  the  Seller's  consent.  Following  expiration  of  such 7 year
period,  the  Purchaser  may  dispose of such  Books and  Records at any time,
unless the Seller has  previously  notified the  Purchaser of its intention to
take possession of such Books and Records.

Agreements Regarding Permits.  If by April 1, 2005, Purchaser has applied for
but not received any Permit the lack of which would prevent Purchaser from
being able to operate the Purchased Business to manufacture pharmaceutical
products, the parties acknowledge and agree that the Services and Access
Rights Agreement shall remain in full force and effect, subject to certain
modifications set forth herein, and the parties will abide by the terms and
conditions of such amended agreement.  Purchaser and Seller hereby agree
that, effective April 1, 2005, the Services and Access Rights Agreement and
applicable exhibits attached thereto shall be amended as follows: (a) the
Leased Premises and Dedicated Facility shall both be deemed to include the
entire Facility; and (b) in lieu of the Rent otherwise due under the Lease,
Purchaser shall be responsible for and shall pay Seller for all operating,
personnel, facilities, equipment, overhead and any other costs or expenses
whatsoever associated with the Facility and the Business; provided that such
costs and expenses shall be charged to Purchaser without any mark-up.  Such
payments shall be billed monthly in arrears.   The terms

* * * Confidential material redacted and filed separately with the Commission.
<PAGE>

CONFIDENTIAL TREATMENT

Section 4.8.       "Leased  Premises",   Dedicated   Facility",   "Rent",  and
"Lease"  shall have the meanings  set forth in the Services and Access  Rights
Agreement.

      In  addition,  effective  at the close of  business  on March 31,  2005,
Seller shall  terminate the  employment of all employees to whom Purchaser has
not offered  employment.  Employees  of Seller to whom  Purchaser  has offered
employment  shall,  as of April 1, 2005,  be deemed to be Employees  under the
Services  and  Access  Rights  Agreement,  as  amended.  With  respect  to all
employees terminated by Seller pursuant to the foregoing,  as required herein,
Purchaser  shall establish the Escrow Account  (defined in Section  8.3(c)(i))
and deposit  therein on March 31, 2005,  an amount equal to the portion of the
Purchase  Price that  Purchaser  would have  deposited  in the Escrow  Account
pursuant to Section 8.3 if the Closing  had  occurred on March 31,  2005.  The
funds  in the  Escrow  Account  shall  be  available  to  Seller  to  pay  the
Separation Plan expenses described in Section 8.3 to the terminated  employees
as if the Closing had occurred on March 31, 2005.

                                  ARTICLE V
                        REPRESENTATIONS AND WARRANTIES

Section 5.1.      Representations  and  Warranties  of Seller.  Seller  hereby
represents  and warrants to Purchaser as of the date of this  Agreement and as
of the Time of Closing that:

(a)   Organization  and  Existence.  Seller  is a  Delaware  corporation  duly
organized,  validly existing, and in good standing under the laws of Delaware,
and  qualified  to do  business  in the  Commonwealth,  with  full  power  and
authority to own, lease,  and operate the Business and the Acquired Assets and
to carry on the  Business as and where such assets are now owned or leased and
the Business is now conducted.

(b)   Authority and Approval.  Seller has the  requisite  corporate  power and
authority  to  execute,  deliver and perform  this  Agreement  and each of the
Related  Agreements.  At the Time of  Closing,  the  execution,  delivery  and
performance of this Agreement,  and each of the Related Agreements,  will have
been  duly  authorized  by all  necessary  corporate  action  on the  part  of
Seller.  This  Agreement  has been,  and at the Time of  Closing  all  Related
Agreements will have been, duly executed and delivered by authorized  officers
of Seller and  constitutes  or will  constitute  the legal,  valid and binding
obligations  of Seller  enforceable  against  Seller in accordance  with their
respective terms.

(c)   No Conflict.  The execution,  delivery and performance by Seller of this
Agreement and each of the Related  Agreements  does not and will not as of the
Time of  Closing  (i) conflict  with or  result  in the  breach  of any  term,
condition  or  provision  of, or require  the  consent  of any  Person  under,
Seller's  articles of incorporation  or bylaws,  as such documents are amended
or restated as of the date of this Agreement;  (ii) conflict with or result in
the breach of,  constitute a default  under,  or  accelerate  the  performance
required by, or require any consent,  authorization,  or approval  under,  any
Transferred  Contract or under any other  material  Contract  if such  default
under  such  other   material   Contract   would   affect  the   validity   or
enforceability of the Agreement;  (iii)  contravene,  conflict with, or result
in a violation of, or give any  Governmental or Regulatory  Authority or other
Person  the right to  challenge  any of the  Contemplated  Transactions  or to
exercise any remedy or obtain any relief under,  any legal  requirement or any
Order to which the Seller,  or any of the Acquired Assets owned or used by the
Seller,  may be  subject;  (iv)  contravene,  conflict  with,  or  result in a
violation of any of the terms or requirements  of, or give any Governmental or
Regulatory  Authority  the  right  to  revoke,   withdraw,   suspend,  cancel,
terminate,  or modify,  any Permit that is held by the Seller  relating to the
Purchased  Business;  (v) cause  Purchaser to become  subject to, or to become
liable  for the  payment  of, any Tax  attributable  to the  payments  made to
Seller  as part  of the  Contemplated  Transactions;  or  (vi)  result  in the
imposition  or  creation  of any  Lien  upon  or  with  respect  to any of the
Acquired Assets.

(d)   Governmental    Approvals   and   Filing.   Except   as   disclosed   in
Section 5.1(d)  of  the  Disclosure  Schedules,  no  consent,   authorization,
approval  or  action  of,  filing  with,  notice  to,  or  exemption  from any
Governmental  or  Regulatory  Authority  on the part of Seller is  required in
connection  with the execution,  delivery and performance of this Agreement or
any Related  Agreements to which Seller is a party or the  consummation of the
transactions contemplated hereby or thereby.

(e)   Legal  Proceedings.   Except  as  disclosed  in  Section 5.1(e)  of  the
Disclosure Schedules:

(i)   There are no lawsuits or  arbitrations  pending or, to the  knowledge of
      the Seller,  threatened  against  Seller  that  relate to the  Purchased
      Business,  which could have a material adverse effect on Purchaser's use
      of the Purchased Business for manufacturing  pharmaceutical  products or
      which  could  have a  material  adverse  effect on  Seller's  ability to
      consummate the transactions contemplated by this Agreement.

(ii)  There  are no  Orders  outstanding  against  Seller  that  relate to the
      Facility,  which could have a material adverse effect on Purchaser's use
      of the Facility for manufacturing active  pharmaceutical  ingredients or
      which  could  have a  material  adverse  effect on  Seller's  ability to
      consummate the transactions contemplated by this Agreement.

(f)   Compliance with Laws and Orders.  Except as disclosed in  Section 5.1(f)
of the Disclosure Schedules,  to its knowledge,  Seller is not in violation of
or in default under any Law or Order  applicable  to the  Purchased  Business,
the Acquired Assets or the Assumed Liabilities.

Employee Benefit Plans.  Section 5.1(g) of the Disclosure Schedules lists
with respect to Seller:  (i)  each defined benefit plan and defined
contribution plan, stock option or ownership plan, executive compensation,
bonus, incentive compensation or deferred compensation or profit-sharing
plan, (ii) each medical, dental, vision, disability or death benefit plan,
and (iii) any other employee benefit plan, including each "employee benefit
plan" within the meaning of Section 3(3) of ERISA, and any fringe benefit, or
group life insurance plan in each case which is or was maintained or
contributed to or sponsored by Seller for the benefit of any employee or
former employee of the Business and which covers employees or former

* * * Confidential material redacted and filed separately with the Commission.
<PAGE>

CONFIDENTIAL TREATMENT

(g)   employees  of  the  Business   (such   plans,   contracts,   agreements,
arrangements,  programs and policies described in clauses (i) through (iii) of
this  Section 5.1(g),  whether formal or informal and whether or not set forth
in writing are referred to herein as the "Benefit  Plans").  True and complete
copies  of the  agreements  specified  in this  Section 5.1(g)  have been made
available to Purchaser.

(h)   Title.

(i)   Real Property -- Section  5.1(h)(i) of the Disclosure  Schedule contains
      a complete and accurate  list of all property and  interests  comprising
      the  Real   Property.   Seller  has  delivered  or  made   available  to
      Purchaser copies of the deeds and other  instruments by which the Seller
      acquired the Real Property,  and copies of all title insurance policies,
      title reports,  abstracts,  surveys, leases, mortgages,  certificates of
      occupancy  and  similar  documents,  and all  amendments  thereof,  with
      respect to the Real  Property.  The Seller owns with good and marketable
      title, subject only to Permitted Liens, all the Real Property.  The Real
      Property  is free and clear of all Liens,  except for  Permitted  Liens,
      and  is not  subject  to  any  rights  of  way,  exceptions,  variances,
      reservations,  or  limitations  of any  nature  except as may  appear of
      record in the Registry of Property of Puerto Rico. All  improvements  to
      the Real  Property  that are  required by law to have been  approved and
      registered  with  the  proper  governmental  authorities  have  been  so
      approved and  registered.  Seller has not been served or threatened with
      any  condemnation or  appropriation  proceedings by any  Governmental or
      Regulatory Authority against any of the Real Property.

(ii)   Personal  Property -- Section  5.1(h)(ii)  of the  Disclosure  Schedule
      contains a complete and accurate list of all personal  property included
      in the Acquired  Assets.  The Seller owns good and  marketable  title to
      all such personal property, free and clear of all Liens.

(iii)  At the Closing,  but subject to the filing or recording of  appropriate
      conveyance  instruments,  Purchaser  will  receive  good and  marketable
      title to all of the Acquired Assets  transferred to it free and clear of
      and from all Liens other than the Permitted Liens.

(i)   Disclaimer of Warranties.     EXCEPT  AS  EXPRESSLY   PROVIDED  IN  THIS
AGREEMENT  OR IN THE DEED TO BE FILED OF RECORD IN THE REGISTRY OF PROPERTY OF
PUERTO RICO, THE SELLER HEREBY DISCLAIMS ALL CONDITIONS,  OTHER WARRANTIES AND
STATEMENTS IN RESPECT OF THE ACQUIRED ASSETS,  WHETHER EXPRESS OR IMPLIED,  BY
STATUTE, CUSTOM OF THE TRADE OR OTHERWISE (INCLUDING,  WITHOUT LIMITATION, ANY
SUCH CONDITION,  WARRANTY OR STATEMENT  RELATING TO THE DESCRIPTION OR QUALITY
OF  THE  ACQUIRED  ASSETS,  THEIR  MERCHANTABILITY  OR  THEIR  FITNESS  FOR  A
PARTICULAR  PURPOSE  OR USE  UNDER  ANY  CONDITIONS)  AND ANY SUCH  CONDITION,
WARRANTY OR STATEMENT IS HEREBY  DISCLAIMED BY THE SELLER AND EXCLUDED.  IN NO
EVENT SHALL THE SELLER OR THE  PURCHASER  BE LIABLE  UNDER OR WITH  RESPECT TO
THIS AGREEMENT,  OR ANY OTHER AGREEMENT OR INSTRUMENT  CONTEMPLATED  HEREBY OR
THEREBY  (INCLUDING  ALL RELATED  AGREEMENTS),  FOR ANY INDIRECT,  INCIDENTAL,
CONSEQUENTIAL,  SPECIAL OR  PUNITIVE  DAMAGES OF ANY KIND,  INCLUDING  BUT NOT
LIMITED TO LOSS OF  PROFITS,  INCLUDING  BUT NOT  LIMITED TO, DUE TO BREACH OF
WARRANTY,  TORT,  OR BREACH OR  REPUDIATION  OF ANY TERM OR  CONDITION OF THIS
AGREEMENT,  OR ANY  OTHER  AGREEMENT  OR  INSTRUMENT  CONTEMPLATED  HEREBY  OR
THEREBY  (INCLUDING  ALL  RELATED  AGREEMENTS);  PROVIDED,  HOWEVER,  THAT THE
FOREGOING  SHALL NOT LIMIT EITHER  PARTY'S  LIABILITY IN  CONNECTION  WITH ITS
INDEMNITY OBLIGATIONS FOR THIRD PARTY CLAIMS.

(j)   Material Contracts.

(i)   Section 5.1(j)  of the  Disclosure  Schedules  contains a list of all of
      the  following  Contracts  to which  Seller is a party as of the date of
      this  Agreement,  which  shall be updated as of a date  within  five (5)
      days prior to the Closing Date ("Material Contracts"):

(A)   any Contracts  pertaining to the ownership or operation of the Purchased
      Business  providing  for  payments  in  excess of  Twenty-Five  Thousand
      Dollars  ($25,000) per calendar  year or which in the  aggregate  exceed
      Fifty Thousand Dollars ($50,000);

(B)   any  employment,  severance  or  termination  agreements  as to  current
      employees  of the  Business or any  agreements  which would  provide any
      current or former  employees  with rights or benefits as a result of the
      consummation of the transactions contemplated by this Agreement;

(C)   any  Contracts  limiting  Seller's  right to occupy or use the Purchased
      Business and any lease or sublease of any portion of the Facility;

(D)   any licenses  related to the  ownership  or  operation of the  Purchased
      Business other than "shrink wrap" licenses that are generally  available
      to the public and other  licenses that are listed on  Section 5.1(r)  of
      the Disclosure  Schedules and that are generally available to the public
      and that are not  specifically  related to the operation of the Tangible
      Personal Property;

(E)   any other  Contracts  that have been  furnished  to  Purchaser  and that
      Purchaser has agreed in writing to assume,  provided that such Contracts
      are  listed on  Section 5.1(j)  of the  Disclosure  Schedules  under the
      heading "Transferred Contracts" (the "Transferred Contracts").

* * * Confidential material redacted and filed separately with the Commission.
<PAGE>

CONFIDENTIAL TREATMENT

(ii)  Copies  of the  Material  Contracts  have  been  made  available  and/or
      delivered  to  Purchaser.  Each  Material  Contract is in full force and
      effect  and   constitutes   a  legal,   valid  and  binding   agreement,
      enforceable in accordance  with its terms,  of each party  thereto;  and
      except  as  disclosed  in  Section  5.1(j)  of the  Disclosure  Schedule
      neither  Seller nor, to the knowledge of Seller,  any other party to any
      Material  Contract is, or has  received  notice that it is, in violation
      or  breach  of or  default  under any  Material  Contract  (or that with
      notice or lapse of time or both,  it would be in  violation or breach of
      or default under any Material Contract) in any material respect.

(iii) Except as disclosed in Section 5.1 (j) of the Disclosure Schedules,  the
      execution,  delivery and  performance by Seller of this  Agreement,  and
      the consummation of the Contemplated  Transactions,  will not (A) result
      in or  give  to any  Person  any  right  of  termination,  cancellation,
      acceleration  or  modification  in or with  respect to, (B) result in or
      give to any Person any  additional  rights or  entitlement to increased,
      additional,  accelerated or guaranteed  payments under, or (C) result in
      the creation or  imposition  of any Lien,  other than a Permitted  Lien,
      upon Seller or any of its Acquired Assets under, any Material Contract.

(iv)  No event has occurred and no  circumstance  exists that (with or without
      notice or lapse of time) will give the Seller or other  Person the right
      to declare a default or exercise any remedy under,  or to accelerate the
      maturity or  performance  of, or to cancel,  terminate,  or modify,  any
      Material Contract.

(v)   There  are  no   renegotiations   of,  attempts  to   re-negotiate,   or
      outstanding  rights to renegotiate any material  amounts paid or payable
      to the Seller  under any  Material  Contract and Seller has not received
      any written demand for such renegotiation.

(k)   Permits.  Except  as  disclosed  in  Section 5.1(k)  of  the  Disclosure
Schedules,  Seller owns or possesses all Permits  necessary or material to the
ownership  or operation of the  Purchased  Business and all Permits  necessary
for the  construction of each of the  improvements  which are part of the Real
Estate.  Except as disclosed in  Section 5.1(k)  of the Disclosure  Schedules,
all such Permits  possessed by Seller were validly  issued in compliance  with
all applicable Laws and are in full force and effect;  Seller has not received
notice of  violation  or proposed  revocation  or  termination  of any of such
Permits from any  Governmental  or Regulatory  Authority.  Seller has obtained
all approvals  and Permits  necessary for the Facility to comply with all Laws
relating to land use (including development,  zoning,  planning,  construction
and use restrictions).

(l)   Insurance.  Section 5.1(l)  of the  Disclosure  Schedules  sets  forth a
list of all  insurance  policies  maintained  by Seller  covering the Acquired
Assets.  All such  insurance  is in full force and effect,  all  premiums  due
thereunder  up to the  Effective  Time  have or will  be paid  and no  written
notice of  cancellation  or termination  has been received with respect to any
such insurance.

* * * Confidential material redacted and filed separately with the Commission.
<PAGE>

CONFIDENTIAL TREATMENT

(m)    Environmental Matters.

(i)   To the  knowledge  of  Seller,  (A)  Seller  is in  compliance  with all
      applicable  Environmental  Laws (which compliance  includes,  but is not
      limited to, the possession by the Seller of all  Environmental  Permits,
      and  compliance  with the terms and  conditions  thereof),  except where
      failure to be in compliance  would not  reasonably be expected to have a
      material adverse effect on Purchaser's  ability to operate the Purchased
      Business;  (B) there is as of the date of this Agreement and,  except as
      set  forth  in  Disclosure  Schedule  5.1(m),  there  will  be as of the
      Closing Date, no Environmental  Liabilities pending or, to the knowledge
      of Seller,  threatened  against or  affecting  the  Seller  which  would
      reasonably be expected to have a material  adverse effect on Purchaser's
      ability  to  operate  the  Purchased  Business;  (C) there  have been no
      releases of  Hazardous  Materials  on, at, in or  underneath  any of the
      Acquired  Assets  or,  to  the  knowledge  of  Seller,  on,  at,  in  or
      underneath  the  Facility  that would  reasonably  be expected to have a
      material adverse effect on Purchaser's  ability to operate the Purchased
      Business;  (D) as of the date of this Agreement,  except for actions, if
      any,  in  response  to the  Environmental  Assessments  and  any  update
      thereto  referred  to in  Section  6.5(a)(ii)  and  (iii),  there  is no
      cleanup  or  remediation  of  Hazardous  Materials  being  conducted  or
      planned by the Seller at the Facility;  and (E) the Seller has delivered
      or otherwise made available for inspection to Purchaser  true,  complete
      and correct copies and results of any Phase I or Phase II  Environmental
      Assessments   previously  prepared,  and  any  other  material  reports,
      studies,  analyses,  tests or  monitoring  possessed or initiated by the
      Seller pertaining to Hazardous  Materials in, on, beneath or adjacent to
      any of the Acquired  Assets,  or regarding the Seller's  compliance with
      applicable  Environmental  Laws in connection with the Acquired  Assets.
      Notwithstanding  anything to the  contrary  herein,  the parties  hereby
      agree  that  there  is  excluded  from  all  other  representations  and
      warranties  in this  Article V all matters  with  respect to  compliance
      with, or Environmental  Liabilities  arising under,  Environmental Laws.
      The  representations  and  warranties  contained in this Section  5.1(m)
      shall be the exclusive  representations  and warranties  with respect to
      such matters.

(ii)  (A) Seller is not subject to any outstanding  judgment,  order or decree
      under any Environmental Law relating to the Acquired Assets;  (B) to the
      knowledge  of  Seller,   there  is  no  claim,  action,  suit,  notices,
      surcharges,  proceeding or investigation pending, or to the knowledge of
      Seller,   threatened  by  or  before  any  third  party,  including  any
      Governmental  or  Regulatory  Authority,  against  Seller,  or,  to  the
      knowledge  of Seller,  any  current or  previous  owner or tenant of the
      Facility relating to any Environmental  Law; and (C) to the knowledge of
      Seller,  there are no  enforcement,  clean-up,  removal,  mitigation  or
      other  governmental  or  regulatory  actions  instituted,   or,  to  the
      knowledge  of Seller,  threatened  against  the Seller  pursuant  to any
      Environmental  Laws  concerning  or  dealing  with  any of the  Acquired
      Assets.

(iii) Except as disclosed in Section 5.1(m)(iii) of the Disclosure  Schedules,
      Seller does not own,  operate or lease a treatment,  storage or disposal
      facility  on any of the  Real  Property  requiring  a permit  under  the
      Resource  Conservation and Recovery Act, as amended,  or under any other
      comparable state or local Law; and, without limiting the foregoing,  (i)
      to the knowledge of Seller, no  polychlorinated  biphenyl is or has been
      present,  (ii) no  asbestos  or  asbestos-containing  material is or has
      been present,  (iii) there are no  underground  storage tanks or surface
      impoundments for Hazardous Materials,  active or abandoned,  and (iv) no
      Hazardous Material has been released in a quantity  reportable under, or
      in violation of, any  Environmental  Law or otherwise  released,  in the
      cases of  clauses  (i)  through  (iv),  at, on or under any such site or
      facility  during any period that Seller  owned,  operated or leased such
      property.

(iv)  No oral or written  notification of a release of a Hazardous Material in
      connection  with the  operation  of the Business has been filed by or on
      behalf of  Seller,  and no site or  facility  now or  previously  owned,
      operated  or leased by Seller on any of the Real  Property  is listed or
      proposed for listing on the NPL,  CERCLIS or any similar  state or local
      list of sites requiring investigation or clean-up.

(v)   No Liens have arisen under or pursuant to any  Environmental  Law on any
      site or facility owned,  operated or leased by Seller on any of the Real
      Property,  and no federal,  state or local  Governmental  or  Regulatory
      Authority  action has been taken or, to the  knowledge of Seller,  is in
      process that could subject any such site or facility to such Liens,  and
      Seller  would  not be  required  to  place  any  notice  or  restriction
      relating to the  presence  of  Hazardous  Materials  at any such site or
      facility  in any  deed  to the  Real  Property  on  which  such  site or
      facility is located.

(vi)  There  have  been  no  environmental  investigations,  studies,  audits,
      tests,  reviews  or  other  analyses  conducted  by,  or that are in the
      possession  of,  Seller  in  relation  to any  site or  facility  now or
      previously  owned,  operated  or  leased  by  Seller  on any of the Real
      Property  which  have  not  been  delivered  to  Purchaser  prior to the
      execution of this Agreement.

(n)   Brokers.  No broker,  finder or  investment  banker is  entitled  to any
brokerage  commission,  finder's fee or similar payment in connection with the
transactions  contemplated hereby based upon arrangements made by or on behalf
of Seller.

(o)   Absence of Certain Changes or Events.  Since August 30, 2004,  except as
described  in  Section 5.1(o)  of the  Disclosure  Schedules,  there  has  not
occurred any Material Adverse Change.  Since August 30, 2004:

(i)   Seller  has not made any  material  change in  employment  terms for any
      employees of the  Purchased  Business  with the  exception of changes in
      benefits which are applicable to all of Seller's employees; and

(ii)  Seller has not sold,  assigned,  transferred  or  otherwise  disposed or
      agreed to dispose of any of the assets  used in the  Purchased  Business
      except in the ordinary course of business.

* * * Confidential material redacted and filed separately with the Commission.
<PAGE>

CONFIDENTIAL TREATMENT

(iii) There  has not  occurred  any  physical  damage,  destruction  or  other
      casualty  loss  (whether or not covered by  insurance)  affecting any of
      the plant,  real or personal property or equipment of Seller or held for
      use in the  conduct of the  Purchased  Business in an  aggregate  amount
      exceeding $10,000;

(iv)   There has not occurred (A) any  disposition of any Acquired Assets used
      or held for use in the  conduct of the  Purchased  Business,  other than
      Inventory  in the  ordinary  course  of  business  consistent  with past
      practice and other  dispositions not exceeding in either case $10,000 in
      the aggregate;  or (B) any creation or incurrence of a Lien,  other than
      a Permitted  Lien,  on any  Acquired  Assets used or held for use in the
      conduct of the Purchased Business;

(v)    Except  as set forth in  Section  5.1(j)  of the  Disclosure  Schedule,
      Seller has not entered into, amended,  modified,  terminated (partial or
      complete)  or granted any waiver under or given any consent with respect
      to (A) any Material Contract or (B) any Permit;

(vi)   Seller has not entered  into any  Material  Contract to do or engage in
      any of the foregoing after the date hereof; or

(vii) There  has  not  occurred  any  other  transaction  involving,   or  any
      development  affecting,  the Acquired Assets outside the ordinary course
      of business consistent with past practice.

(p)   Facility and Tangible Personal Property.

(i)   To the  knowledge  of Seller,  the  operations  and  maintenance  of the
      Facility as now operated and  maintained,  do not violate or  contravene
      any  Laws or  Orders,  and the  Facility  is in  adequate  and  suitable
      condition for operation as a  pharmaceutical  manufacturing  facility in
      light  of its age and  remaining  useful  life,  ordinary  wear and tear
      excepted.

(ii)  There  exists no pending  or, to the  knowledge  of  Seller,  threatened
      condemnation or similar proceeding with respect to the Facility.

(iii) Seller  has not  made  any  other  agreement  for  sale,  lease or other
      disposition  of, or given any  person  an option to  purchase,  lease or
      otherwise acquire, all or any part of the Facility.

(iv)  At the  Time of  Closing,  the  Facility  will be in the  possession  of
      Seller,  and no other  person  shall  have any  right to  possession  or
      claims to possession of all or any part of the Facility.

(v)   No portion of the  Facility  is  located  in an area  identified  in the
      Federal Register by the Federal  Emergency  Management  Agency as having
      special flood  hazards.  No portion of the Facility has been  designated
      as "Flood Zone 1" or "Flood Zone 2" by the Puerto Rico Planning Board.

(q)   Employee Matters.

(i)   Section 5.1(q)(i)   of  the  Disclosure   Schedules  lists  all  current
      employees of the Business as of the date of this  Agreement,  and Seller
      has provided  Purchaser with their hourly rates of  compensation or base
      salaries (as applicable) and any bonus arrangements or bonus plans.

(ii)  Seller is a party to a collective  bargaining agreement (the "Collective
      Bargaining  Agreement"),  by which  Purchaser  will not be bound,  which
      covers  or  applies  to  certain  employees  of the  Business.  Schedule
      5.1(q)(ii) lists with respect to Seller:  (1) the Collective  Bargaining
      Agreement;  (2) each employment agreement;  and (3) the Separation Plan.
      Purchaser will not be bound by virtue of the  Contemplated  Transactions
      by, and except as set forth on Schedule 5.1(q)(ii),  the Seller does not
      have, is not a party to, nor is it bound, by:

                        (A)   any collective bargaining agreements;

                        (B)   any agreements or arrangements  that contain any
      severance pay or post-employment liabilities or obligations;

                        (C)   any   employment   or   consulting    agreement,
      contract or commitment  with an employee,  former employee or individual
      consultant or any  consulting  agreement,  contract or commitment  under
      which any firm or other organization provides services to the Seller;

(iii) Except as set forth on  Schedule  5.1(q)(iii),  to  Seller's  knowledge,
      Seller  is  in  compliance   with  all  applicable   foreign,   federal,
      Commonwealth,   and  local  laws,   rules  and  regulations   respecting
      employment,  employment  practices,  terms and  conditions of employment
      and wages and hours,  in each case,  with respect to its  employees  and
      former  employees;  has  withheld  all  amounts  required  by  law or by
      agreement to be withheld from the wages,  salaries and other payments to
      its  employees  and former  employees;  is not liable for any arrears of
      wages or any Taxes or any  penalty for failure to comply with any of the
      foregoing;  and is not liable for any payment to any trust or other fund
      or  to  any  Governmental  or  Regulatory   Authority  with  respect  to
      unemployment,  short term  disability,  social  security for chauffeurs,
      workers  compensation,  social security or other benefits or obligations
      for its employees or former employees.

Seller has not been notified, and has no reason to believe, that any work
stoppage or labor strike against the Seller is pending or threatened.  Except
as set forth in Schedule 5.1(q)(iv), Seller is not involved in or threatened
with, any labor dispute, grievance, or litigation relating to labor, safety
or discrimination matters involving any employee or former employee of
Seller, including, without limitation, charges or

* * * Confidential material redacted and filed separately with the Commission.
<PAGE>

CONFIDENTIAL TREATMENT

(iv)  complaints   of   unfair   labor    practices,    wrongful    discharge,
      discrimination,  retaliation,  harassment,  wage and hour,  or under any
      Employee Benefit Plans.

(v)   As of the Closing  Date,  Seller will have complied with all WARN notice
      requirements  and  with  any  notice  requirement  arising  out  of  the
      Collective  Bargaining  Agreement,  and/or  out of  any of the  Seller's
      policies and/or practices.

(vi)  Except  as set  forth on  Schedule  5.1(q)(vi),  there  are no  material
      controversies  pending or threatened before any court or Governmental or
      Regulatory  Authority,  between the Seller and any of its  employees  or
      former employees.

(vii) Except as set forth on  Schedule  5.1(q)(vii),  the  Seller has not been
      notified by any  Governmental  or  Regulatory  Authority of any labor or
      employee-related  investigation  involving  the  Seller,  nor  does  any
      condition  exist,  which would  constitute a violation of any applicable
      foreign, federal, Commonwealth, or local laws, rules or regulations.

(viii)      Except as set forth on Schedule 5.1(q)(viii),  the Seller is not a
      party to any employment  contract or arrangement  with respect to any of
      its  employees  or  former  employees  (including,  without  limitation,
      so-called  "golden  parachute"  or  severance  agreements),  nor has the
      Seller  in  any  other  manner   limited  its  right  to  terminate  the
      employment  relationship  with its employees or former  employees except
      as provided in Puerto Rico Act No. 80 of May 30, 1976.

(ix)  As of the Closing Date,  Seller will have paid all  salaries,  including
      vacation,  bonuses,   incentives,   differentials,   etc.  owed  to  the
      employees.

(r)   Intangible  Property.  Purchaser  acknowledges  that the Acquired Assets
do not include any  Intangible  Property  other than the  Intangible  Property
described in  Section 5.1(r)  of the Disclosure  Schedules  (the  "Transferred
Intangible  Property").  Seller  is the  owner of and has the right to use the
Transferred   Intangible   Property   free  and   clear  of  any   Liens   and
restrictions.  To the  knowledge of Seller,  Seller's  use of the  Transferred
Intangible  Property does not infringe the rights of any Person,  and no other
Person has any right to use or has  claimed  any right to use the  Transferred
Intangible Property.

(s)   No  Misleading   Statements.   Neither  this   Agreement,   any  Related
Agreement  nor any  certificate  or other  document  delivered  by  Seller  in
connection with this Agreement or any of the Related Agreements  contains,  or
will contain when delivered,  any untrue statement of a material fact or omits
to state, or will omit to state when  delivered,  a material fact necessary in
order  to make  the  statements  made  herein  or  therein,  in  light  of the
circumstances under which they were made, not misleading.

(t)   Books and Records.  The books of account and other records of the Seller
relating to the  Purchased  Business  have been made  available to  Purchaser.
Such books of account,  and other  records are  complete  and correct and have
been  maintained in accordance  with sound  business  practices  including the
maintenance of an adequate system of internal  controls.  Seller has delivered
to  Purchaser  a  letter  from  Seller's  Corporate  Secretary  regarding  the
contents of  Seller's  corporate  minute  book,  which is  attached  hereto as
Exhibit 9.

(u)   No Undisclosed Liabilities.  There are no Liabilities against,  relating
to or  affecting  any of the  Acquired  Assets,  other  than  Liabilities  (i)
incurred in the  ordinary  course of business  consistent  with past  practice
that,  individually or in the aggregate,  are not material to the condition of
the Acquired  Assets or (ii) that were  otherwise  disclosed in the Disclosure
Schedule to this Agreement.  To the knowledge of Seller, there is no basis for
any  present  or future  action,  suit,  proceeding,  hearing,  investigation,
charge, complaint,  claim, or demand against Seller with respect to any of the
Acquired  Assets giving rise to any such  Liabilities.  Since August 30, 2004,
there has not been any  Material  Adverse  Change and no event has occurred or
circumstance exists that may result in such a Material Adverse Change.

(v)               Taxes.

(i)    As of the  Time of  Closing,  none of the Tax  Returns  required  to be
      filed with  respect to the  Acquired  Assets will be past due the filing
      deadline;  each such Tax Return  correctly and completely  reflects,  or
      will reflect,  the valuation,  assessment or other Tax liability and all
      other  information   required  to  be  reported  thereon;  and  the  tax
      liability  shown in such Tax  Returns as well as the real  property  tax
      liability  with  respect  to the  Acquired  Assets,  was or will be paid
      timely.

(ii)  No issues will have been raised by any taxing  authority  in  connection
      with Tax  Returns  required  to have  been  filed  with  respect  to the
      Acquired  Assets and in connection  with the real property tax liability
      on the Acquired Assets.

(w)               Product  Warranty.  Except as set forth in Section 5.1(w) of
the Disclosure  Schedules,  each product  manufactured,  sold, or delivered by
Seller has been in conformity with all applicable contractual  commitments and
all express and implied warranties.

Section 5.2.      Representations  and  Warranties  of  Purchaser.   Purchaser
hereby  represents and warrants to Seller as of the date of this Agreement and
as of the Closing Date that:

(a)   Organization  and  Existence.  Purchaser is a limited  corporation  duly
organized and validly  existing,  and in good  standing  under the laws of the
Isle of Man,  with full power and  authority  to own,  lease,  and operate its
business  and  properties  and to  carry on its  business  as and  where  such
properties  and  assets  are now  owned or  leased  and such  business  is now
conducted.

Authority and Approval. Purchaser has the requisite corporate power and
authority to execute, deliver and perform this Agreement and each of the
Related Agreements.  At the Time of Closing, the execution, delivery and
performance of this Agreement, and each of the Related Agreements, will have
been duly authorized by all necessary corporate action on the part of
Purchaser.  This Agreement has been, and at the Time of Closing all Related
Agreements will have been, duly executed and delivered by authorized officers
of Purchaser and constitutes

* * * Confidential material redacted and filed separately with the Commission.
<PAGE>

CONFIDENTIAL TREATMENT

(b)   or  will  constitute  the  legal,  valid  and  binding   obligations  of
Purchaser  enforceable  against  Purchaser in accordance with their respective
terms.

(c)   No Conflict.  The  execution,  delivery and  performance by Purchaser of
this Agreement and each of the Related  Agreements does not and will not as of
the Time of  Closing  (i) conflict  with or result in the breach of any terms,
condition  or  provision  of, or require any consent of, any Person  under the
terms,  conditions,  or provisions of Purchaser's articles of incorporation or
by-laws,  as such  documents  have been  amended or restated as of the date of
this Agreement,  (ii) conflict  with or result in the breach of,  constitute a
default  under ,  accelerate  the  performance  required  by, or  require  any
consent,  authorization, or approval under, any contract to which Purchaser is
a party or by which it is bound or to which any of its assets or  property  is
subject,  or  (iv) result  in the  creation  of any Lien  upon the  assets  or
property of Purchaser  under any such  contract,  except in each case as would
not  reasonably be expected to have a material  adverse effect on the validity
or  enforceability  of this Agreement  against Purchaser or a material adverse
effect  on  the  ability  of  Purchaser   to   consummate   the   transactions
contemplated by this Agreement.

(d)   Governmental Approvals and Filing. No consent,  authorization,  approval
or action of, filing with,  notice to, or exemption from any  Governmental  or
Regulatory  Authority on the part of Purchaser is required in connection  with
the  execution,  delivery  and  performance  of this  Agreement or any Related
Agreements  to  which  Purchaser  is  a  party  or  the  consummation  of  the
transactions contemplated hereby or thereby.

(e)   Legal Proceedings.

(i)   There  are no  lawsuits  pending  or,  to the  knowledge  of  Purchaser,
      threatened  against Purchaser which (1) would  reasonably be expected to
      materially  adversely  affect the  validity  or  enforceability  of this
      Agreement  or any  Related  Agreement  or the  ability of  Purchaser  to
      consummate  the   transactions   contemplated  by  this  Agreement,   or
      (2) would  reasonably  be expected to result in the issuance of an Order
      restraining,  enjoining or otherwise  prohibiting  or making illegal the
      consummation of the transactions contemplated by this Agreement.

(ii)  There  are no  Orders  outstanding  against  Purchaser  which  would  be
      reasonably  expected to have a material adverse effect on the ability of
      Purchaser to consummate the transactions contemplated by this Agreement.

(f)   Brokers.  No broker,  finder or  investment  banker is  entitled  to any
brokerage  commission,  finder's fee or similar payment in connection with the
transactions  contemplated hereby based upon arrangements made by or on behalf
of Purchaser,  with the exception of an arrangement between Purchaser and Marc
Couturier, for which Purchaser is solely liable.

(g)   No  Misleading   Statements.   Neither  this   Agreement,   any  Related
Agreement  nor any  certificate  or other  document  delivered by Purchaser in
connection with this Agreement or any of the Related Agreements  contains,  or
will contain when delivered,  any untrue statement of a material fact or omits
to state, or will omit to state when  delivered,  a material fact necessary in
order  to make  the  statements  made  herein  or  therein,  in  light  of the
circumstances under which they were made, not misleading.

ARTICLE VI
                               INDEMNIFICATION

Section 6.1.      Indemnification by Seller and Purchaser.

(a)   Indemnification  by Seller.  Subject to the terms and conditions of this
Agreement (including,  in particular,  the provisions relating specifically to
indemnification  for  environmental  matters),  Seller agrees to indemnify and
hold  harmless  Purchaser,  its  Affiliates  and  their  respective  officers,
directors,  employees,  and agents and their successors and permitted  assigns
(collectively,  the "Purchaser Indemnified Parties") against and in respect of
any Damages incurred by any of them directly from any of the following:

(i)   any  misrepresentation  or breach by  Seller  of any  representation  or
      warranty in this  Agreement and any  inaccuracy in the Seller's  Closing
      Certificate;

(ii)  any  failure  to  perform  by  Seller  of any of its  covenants  in this
      Agreement  or in  any  other  agreements  or  instruments  furnished  to
      Purchaser pursuant to this Agreement;

(iii) any Excluded Liabilities;

(iv)  claims of  Seller's  current  or former  employees  with  respect to the
      period  prior  to  the  Effective  Time  arising  out of  such  Person's
      employment  with  Seller   including  but  not  limited  to  claims  for
      compensation  and  violations  of wage and hour  statutes or other Laws,
      and the  claims  set  forth  in  Section  5.1(q)(iv)  of the  Disclosure
      Schedules; or

(v)   claims  related to  Seller's  obligations  under  Section  8.1(a),  with
      respect to Benefit Plans.

(b)   Indemnification  by  Purchaser.  Subject to the terms and  conditions of
this   Agreement   (including,   in  particular,   the   provisions   relating
specifically to indemnification for environmental  matters),  Purchaser agrees
to indemnify and hold harmless  Seller,  its Affiliates  and their  respective
officers, directors,  managers, employees, and agents and their successors and
permitted assigns  (collectively,  the "Seller  Indemnified  Parties") against
and in respect of any  Damages  incurred by any of them  directly  from any of
the following:

(i)   any  misrepresentation  or breach by Purchaser of any  representation or
      warranty  in  this  Agreement  and  any  inaccuracy  in the  Purchaser's
      Closing Certificate;

* * * Confidential material redacted and filed separately with the Commission.
<PAGE>

CONFIDENTIAL TREATMENT

(ii)  any  failure to perform by  Purchaser  of any of its  covenants  in this
      Agreement or in any other agreements or instruments  furnished to Seller
      pursuant to this Agreement;

(iii) any claim for  benefits  under the  Separation  Plan by any of  Seller's
      employees  at the  Date  of  Closing  which  arises  out of  Purchaser's
      decision not to offer  employment to any such employees  pursuant to the
      terms of this  Agreement,  or to terminate  the  employment  of any such
      employees,  or claim  arising  from  Purchaser's  failure  to  reimburse
      expenses incurred in connection with the Separation Plan;  provided that
      the costs of  defending  any such claim  shall be shared  equally by the
      parties; or,

(iv)  any Assumed Liabilities.

Section 6.2.      Indemnification Procedures for Third-Party Claims.

(a)   Notification  of  Claims.   In  the  event  any  third  party  makes  or
commences  a claim,  action or  proceeding  (a  "Claim")  with  respect to any
matter as to which any of the Purchaser  Indemnified  Parties  intends to seek
indemnification  under  Section 6.1(a),  or with  respect  to any matter as to
which any of the Seller  Indemnified  Parties intends to seek  indemnification
under  Section 6.1(b),  the  Person  to be so  indemnified  (the  "Indemnified
Party") shall promptly notify each Person from which such  indemnification  is
to be sought (each an  "Indemnifying  Party") of the  existence of such Claim.
The failure of an Indemnified Party to properly notify the Indemnifying  Party
hereunder  shall  not  relieve  the  Indemnifying  Party  of  its  obligations
hereunder,  except to the extent that such  Indemnifying  Party is  materially
prejudiced by the failure to receive such notice.

(b)   Defense of Claims by Indemnifying  Party. The  Indemnifying  Party shall
have the right to  undertake  and  direct  the  defense  of any such  Claim by
delivering to the Indemnified Party written notice of such undertaking  within
thirty (30) days of the receipt of notice  from the  Indemnified  Party of the
existence of such  third-party  Claim  provided  that the  Indemnifying  Party
acknowledges,  in writing,  its obligation to indemnify the Indemnified  Party
in accordance with the terms of this Agreement.

(c)   Settlement  of  Claims  by  Indemnified   Parties.   In  the  event  the
Indemnifying  Party  declines  to  undertake  the defense of any such Claim as
provided in Section 6.2(b),  the Indemnified Party shall keep the Indemnifying
Party advised as to the current status and progress  thereof.  The Indemnified
Party shall not make any offer of settlement  with respect to any Claim if the
Indemnifying  Party has  undertaken  the defense of such  Claim.  In the event
the  Indemnifying  Party  undertakes  the  defense  of  any  such  Claim,  the
Indemnified  Party shall  nevertheless  be entitled to participate in (but not
direct) the defense  thereof with  counsel of its own choice,  and the parties
agree to  cooperate  fully with one  another in  connection  with the  defense
and/or settlement thereof; provided,  however, that any decision to settle any
such Claim shall be at the sole discretion of the  Indemnifying  Party (to the
extent  of  the   Indemnifying   Party's   responsibility   for  the   Claim).
Notwithstanding  the foregoing,  the  Indemnifying  Party shall not settle any
Claim without the Indemnified  Party's consent unless such settlement involves
only the payment of money and the claimant  provides to the Indemnified  Party
a release  from all  liability  in respect of such  Claim.  If the  settlement
involves  more than the  payment of money,  the  Indemnifying  Party shall not
settle the Claim  without the  Indemnified  Party's  prior  consent.  From and
after the date that the Indemnifying  Party assumes the defense of any Claims,
and as long  the  Indemnifying  Party  diligently  defends  such  Claims,  the
Indemnifying  Party shall be  relieved  of the  obligation  to  reimburse  the
Indemnified  Party for any other  legal,  accounting,  or other  out-of-pocket
costs and expenses  thereafter  incurred by the Indemnified Party with respect
to  the  defense  of  such  Claim  notwithstanding  any  participation  by the
Indemnified Party therein.

Section 6.3.      Survival.  With the  exception  of the  representations  and
warranties  contained in  Sections 5.1(a),  5.1(b),  5.1(c),  5.1(d),  5.1(m),
5.1(g),   5.1(q),  5.2(a),  5.2(b),  5.2(c),  5.2(d)  and  5.2(f)  (the  "Core
Representations  and  Warranties"),  which shall  survive the Closing  without
limitation as to time (but subject to any applicable  statute of limitations),
all other  representations  and warranties  contained in this Agreement  shall
survive the Closing for a period of five (5) years and shall  continue in full
force and effect after the Closing only for such  period,  provided,  however,
that all rights to  indemnification  with  respect to claims for Damages  made
within such period shall survive until the final disposition of such claims.

Section 6.4.      Limitations.

(a)   The  provisions of this Article VI shall apply to any Damages for breach
of  any  covenant,  representation,   warranty  or  other  provision  of  this
Agreement or any agreement,  certificate or other document  delivered pursuant
to this Agreement  (other than a claim for specific  performance or injunctive
relief)  with the  intent  that  all such  Damages  shall  be  subject  to the
limitations and other provisions contained in this Article VI.

(b)   The  indemnification  obligations of the Seller  pursuant to Section 6.1
and the  Seller's  liability  for all  Damages  in  respect  thereof  shall be
limited as follows:

(i)   Cap.  In no  event  shall  the  aggregate  liability  of the  Seller  in
      respect of Damages  under Section  6.1(a)(i)  exceed the amount of * * *
      (the "General Liability Cap").  Notwithstanding the foregoing,  however,
      if while the Sharing  Period  described in Section  6.5(c) is in effect,
      the  aggregate  amount for which Seller  would be required  (but for the
      General  Liability  Cap) to  indemnify  Purchaser  with  respect to such
      Damages  exceeds  * * * , the  General  Liability  Cap  shall be  deemed
      increased to the then-current  Environmental  Liability Cap described in
      Section  6.5(c),  less the aggregate of all amounts paid by Seller under
      Sections 6.1(a)(i) since the Closing Date.

(ii)  Deductible.  In the case of all such  Damages  the  Seller  shall not be
      liable in  respect  of such  Damages  unless  and until such time as the
      aggregate  amount of such  Damages  exceed  the  amount  of One  Hundred
      Thousand  Dollars  ($100,000),  and in such  event only to the extent of
      such excess.

* * * Confidential material redacted and filed separately with the Commission.
<PAGE>

CONFIDENTIAL TREATMENT

(c)   Notwithstanding  anything  herein to the contrary,  any  indemnification
claims  against Seller  relating to  Environmental  Liabilities  shall be made
exclusively  under  Sections  6.5 and shall not be subject to and  included in
the cap and deductible limitations provided in Section 6.4(b).

Section 6.5.      Indemnification as to Environmental Matters.

(a)   Seller  agrees to  indemnify,  defend and hold  harmless  the  Purchaser
Indemnified  Parties from and against all Damages resulting from Environmental
Liabilities arising out of or related to the following:

(i)   the  release  or   threatened   release  of  any   Hazardous   Materials
      attributable  to Seller at any  offsite  location  prior to the  Closing
      Date;

(ii)  any  environmental  matters or  conditions  identified in the Phase I or
      Phase II  Environmental  Assessments (the  "Environmental  Assessments")
      prepared previously for Seller and made available to Purchaser; and

(iii) any environmental  matters or conditions  identified in a limited update
      of the  Environmental  Assessments  that is prepared for Purchaser prior
      to the Closing Date (copies of which reports shall be made  available to
      Seller  prior to such date),  provided  that Seller shall have agreed to
      the scope of such  update in advance,  and  provided  further  that with
      respect to any such  environmental  matters or conditions,  Seller shall
      have  the  option  to  (1)  indemnify,  defend  and  hold  harmless  the
      Purchaser   Indemnified  Parties  as  provided  herein,  (2)  clean  up,
      correct,  contain,  remediate or take any response action to address, at
      its  exclusive  cost and  expense,  any such  environmental  matters  or
      conditions,  or (3) terminate this Agreement  without further  liability
      to any of the Seller  Indemnified  Parties.  Seller shall not engage any
      third  party to  perform  work  under (2) above that shall not have been
      approved   by   Purchaser,   which   approval   shall  not  be  withheld
      unreasonably.

      Seller's liability for indemnification  under this Section 6.5(a) is not
subject to the Environmental  Liability Cap, the General Liability Cap, or any
deductible.

(b)   Subject  to the  provisions  of  Section  6.5(a)  and  (c),  Seller  and
Purchaser  agree to share in any  Damages  arising  out of or  related  to the
following:

(i)   the presence of Hazardous  Materials at, on or under the Facility  prior
      to the Closing Date not otherwise  identified by the Phase I or Phase II
      Environmental   Assessments   referenced  in  the   preceding   Sections
      6.5(a)(ii) and 6.5(a)(iii); and

(ii)  the  failure  (not  otherwise  identified  by the  Phase I or  Phase  II
      Environmental   Assessments   referenced  in  the   preceding   Sections
      6.5(a)(ii) and  6.5(a)(iii))  of the Acquired Assets to be in compliance
      prior to the Closing Date with any  Environmental  Laws or environmental
      Permits in effect and enforceable as of the Closing Date.

(c)   With  respect to any Damages  that Seller and  Purchaser  agree to share
under Section  6.5(b),  Seller's  share shall decrease and  Purchaser's  share
shall  increase  proportionately  for a period  of ten (10)  years  after  the
Closing Date pursuant to the following table (the "Sharing Period"):

-----------------------------------------------------------------------
          YEAR               SELLER'S SHARE       PURCHASER'S SHARE
 (UP TO AND INCLUDING)
-----------------------------------------------------------------------
-----------------------------------------------------------------------
 Closing Date + 1 year            90%                    10%
-----------------------------------------------------------------------
-----------------------------------------------------------------------
 Closing Date + 2 years           80%                    20%
-----------------------------------------------------------------------
-----------------------------------------------------------------------
 Closing Date + 3 years           70%                    30%
-----------------------------------------------------------------------
-----------------------------------------------------------------------
 Closing Date + 4 years           60%                    40%
-----------------------------------------------------------------------
-----------------------------------------------------------------------
 Closing Date + 5 years           50%                    50%
-----------------------------------------------------------------------
-----------------------------------------------------------------------
 Closing Date + 6 years           40%                    60%
-----------------------------------------------------------------------
-----------------------------------------------------------------------
 Closing Date + 7 years           30%                    70%
-----------------------------------------------------------------------
-----------------------------------------------------------------------
 Closing Date + 8 years           20%                    80%
-----------------------------------------------------------------------
-----------------------------------------------------------------------
 Closing Date + 9 years           10%                    90%
-----------------------------------------------------------------------
-----------------------------------------------------------------------
Closing Date + 10 years            0%                    100%
-----------------------------------------------------------------------
(d)   Notwithstanding  the foregoing,  at any time, the aggregate liability of
Seller  for all  Environmental  Liabilities  under  Section  6.5(b)  shall not
exceed the then-current  "Environmental  Liability Cap" (defined  hereinafter)
less the  aggregate of all amounts paid by Seller under  Section  6.1(a) since
the  Closing  Date.  The  "Environmental  Liability  Cap" shall be * * * as of
the  Closing  Date,  and  shall  be  reduced   annually   thereafter  on  each
anniversary  of the  Closing  Date by * * * , as set  forth  in the  following
table:

------------------------------------------------
   ANNIVERSARY OF THE        ENVIRONMENTAL
    CLOSING DATE IN:         LIABILITY CAP

------------------------------------------------
------------------------------------------------
          2006                   * * *
------------------------------------------------
------------------------------------------------
          2007                   * * *
------------------------------------------------
------------------------------------------------
          2008                   * * *
------------------------------------------------
------------------------------------------------
          2009                   * * *
------------------------------------------------
------------------------------------------------
          2010                   * * *
------------------------------------------------
------------------------------------------------
          2011                   * * *
------------------------------------------------
------------------------------------------------
          2012                   * * *
------------------------------------------------
------------------------------------------------
          2013                   * * *
------------------------------------------------
------------------------------------------------
          2014                   * * *
------------------------------------------------
------------------------------------------------
          2015                   * * *
------------------------------------------------

* * * Confidential material redacted and filed separately with the Commission.
<PAGE>

CONFIDENTIAL TREATMENT

(e)   Upon  conclusion  of the  Sharing  Period,  Purchaser  shall  indemnify,
defend and hold harmless the Seller  Indemnified  Parties from and against all
Damages covered by Section 6.5(b).

(f)   Purchaser  further  agrees to  indemnify,  defend and hold  harmless the
Seller  Indemnified  Parties  from and against  all Damages  arising out of or
related to, directly or indirectly,  all Environmental  Claims attributable to
Purchaser's  operations or to occurrences  after the Closing Date  ("Purchaser
Environmental Liabilities").

(g)   Purchaser  will have full  authority  to  control,  direct,  manage  and
implement   remediation   and  to  determine   its  scope,   and  conduct  all
negotiations,  meetings and  settlements  with any  Governmental or Regulatory
Authority with respect to Purchaser Environmental Liabilities.

(h)               After the  Closing  Date and  until  the end of the  Sharing
Period,  either party that receives notice or otherwise learns of any event or
condition that might be subject to this Section 6.5 shall promptly  notify the
other  party,  and the  parties  shall  confer  and  attempt  to  agree  on an
appropriate  course of action or  response.  If the parties  cannot agree on a
course of action or  response,  they shall  jointly  engage a third party with
appropriate  expertise in  environmental  responses  to recommend  appropriate
courses of action,  and shall use their best efforts to reach  agreement based
on those recommendations.

(i)               The  provisions  of this  Section 6.5 shall  constitute  the
parties'  exclusive  remedy with  respect to each other for all  Environmental
Claims under  Environmental  Laws arising from the ownership or conduct of the
Purchased  Business.  The obligations of the parties set forth in this Section
6.5 shall be conditioned upon the Closing having occurred.

               (j) Except as otherwise provided in this Section 6.5 or as
would be inconsistent herewith, the provisions of Section 6.2 shall apply to
claims for indemnification under this Section 6.5.

ARTICLE VII
                           COVENANTS OF THE PARTIES

Section 7.1.      Closing  Efforts.  Each of the parties  hereto shall use its
Best  Efforts to take all actions and to do all things  necessary,  proper and
advisable to  consummate  the  transactions  contemplated  by this  Agreement,
including  using its Best Efforts to ensure that (a) its  representations  and
warranties  remain  true and  correct in all  material  respects  through  the
Closing Date and (b) the  conditions to the  obligations  of the other parties
to consummate the transactions contemplated by this Agreement are satisfied.

Section 7.2.      Approvals  and  Consents.  Each party  hereto  shall use its
Best  Efforts to obtain in writing,  prior to the Closing  Date,  all consents
and approvals required to effectuate the transactions  contemplated hereby and
shall  deliver to the other party  copies of such  approvals  and  consents in
form and substance  reasonably  satisfactory  to the other party.  Seller will
provide  information in its  possession  and such  assistance as is reasonably
necessary  to  support  Purchaser's  applications  for any such  approvals  or
consents.  At or prior to the Closing  Date,  Seller shall obtain all consents
and  approvals   necessary  to  assign  all  assignable   Permits   (including
environmental  Permits)  and  Transferred  Contracts to  Purchaser;  provided,
however,  no  modification  of any Permit or  Contract  shall be made  without
Purchaser's prior written consent.

Section 7.3.      Operation  of  the  Purchased  Business  Prior  to  Closing.
Between the date hereof and the earlier of the  termination  of this Agreement
pursuant to Article IX hereof or the Closing Date:

(a)   Negative  Covenants.  Seller  covenants and agrees with Purchaser  that,
except as  contemplated by this Agreement or with the prior written consent of
Purchaser, Seller shall not do any of the following:

(i)   sell or otherwise  dispose of any of the Acquired Assets,  other than in
      the ordinary  course of business,  cancel any debts or claims  involving
      any  Person  related  to the  Acquired  Assets,  or  pledge,  assign  or
      otherwise  convey,  or cause  any Lien to be  placed  upon any  Acquired
      Asset;

(ii)  amend  its  articles  of  organization,  operating  agreement  or  other
      governing  documents in any way that would result in a Material  Adverse
      Change.

(iii) permit  any  Contract  or Permit to be  suspended,  lapsed,  revoked  or
      modified in any way that would result in a Material Adverse Change;

(iv)  amend or  terminate  any  commitment  in a manner that would result in a
      Material Adverse Change;

(v)   take any action  which  would   require  any  changes in the  Disclosure
      Schedules in order for a  representation  and warranty which was true as
      of the date of this  Agreement to be true on the Closing Date except for
      changes in the ordinary  course of business  which do not,  individually
      or in the aggregate, represent a Material Adverse Change;

(vi)  incur any material  liabilities  or increase the amount of debt which is
      secured by a Lien on any of the Acquired Assets;

(vii) except as set forth on Schedule  7.3(a)(vii),  materially  increase  the
      annual  level of  compensation  of any  employee,  and not  increase the
      annual level of  compensation  of any employee in excess of the increase
      in cost of living expense,  if any,  applicable in the United States for
      the previous year and not granting any extraordinary  bonuses,  benefits
      or other  forms of  direct or  indirect  compensation  to any  employee,
      except  in  amounts  in  keeping  with past  practices  by  formulas  or
      otherwise;

* * * Confidential material redacted and filed separately with the Commission.
<PAGE>

CONFIDENTIAL TREATMENT

(viii)      increase,  terminate,  amend or otherwise  modify any plan for the
      benefit of employees.

(b)   Affirmative  Covenants  of Seller.  Seller  covenants  and  agrees  with
Purchaser that Seller shall:

(i)   maintain  the  Acquired  Assets,  subject to normal  wear and tear,  and
      maintain  insurance  upon  the  Acquired  Assets  of the kind and in the
      amounts existing as of the date of this Agreement;

(ii)  comply in all respects with all applicable  Laws affecting the Purchased
      Business and maintain in full force and effect all Permits; and

(iii)  pay its expenses and Liabilities  related to the Purchased  Business in
      the  ordinary  course of business  and  consistent  with past  practice,
      except as contested in good faith.

Section 7.4.      Notice of Breaches.

(a)   Between  the date  hereof  and the  earlier of the  termination  of this
Agreement  pursuant to  Article IX  hereof or the Closing  Date,  Seller shall
promptly deliver to Purchaser  supplemental  information  concerning events or
circumstances  occurring  subsequent to the date hereof which would render any
representation,  warranty or statement in this Agreement,  the Exhibits or the
Disclosure  Schedules  inaccurate  or incomplete at any time after the date of
this Agreement until the Closing.  No such  supplemental  information shall be
deemed to avoid or cure any  misrepresentation,  warranty or statement in this
Agreement,  the Exhibits or the Disclosure Schedules except to the extent such
supplemental  information  relates  to  changes  in  the  ordinary  course  of
business which do not, individually or in the aggregate,  represent a Material
Adverse Change.

(b)   Between  the date  hereof  and the  earlier of the  termination  of this
Agreement  pursuant to Article IX hereof or the Closing Date,  Purchaser shall
promptly  deliver  to Seller  supplemental  information  concerning  events or
circumstances  occurring  subsequent to the date hereof which would render any
representation,  warranty or statement in this Agreement,  the Exhibits or the
Disclosure  Schedules  inaccurate  or incomplete at any time after the date of
this Agreement until the Closing.  No such  supplemental  information shall be
deemed to avoid or cure any  misrepresentation,  warranty or statement in this
Agreement, the Exhibits or the Disclosure Schedules.

Section 7.5.      Assets Incapable of Transfer.

(a)   Consents to Assignment.  To the extent that any Transferred  Contract or
Permit is not  assignable  or  transferable  without  the  consent  of another
Person,  this  Agreement  shall  not  constitute  an  assignment  or  transfer
thereof,  an  attempted  assignment  or transfer  thereof,  or an agreement to
effect  such an  assignment  or  transfer,  if such  assignment  or  transfer,
attempted  assignment  or  transfer,  or agreement  would  constitute a breach
thereof.  Seller  will use its Best  Efforts  to obtain  the  consent  of such
other party to the  assignment  or transfer of any such  Transferred  Contract
and/or  Permit to  Purchaser  in all cases in which such  consent is or may be
required for such  assignment  or transfer.  Purchaser  shall  cooperate  with
Seller in its efforts to obtain such consents.

(b)   Alternative  Arrangements.  If any such  consent  shall not be obtained,
Seller shall  cooperate  with  Purchaser  to provide an  alternate  reasonable
arrangement  reasonably  satisfactory  to  Purchaser  and Seller  designed  to
provide to Purchaser the benefits  intended to be assigned or  transferred  to
Purchaser  under the  relevant  Transferred  Contract or Permit and to relieve
Seller of the  performance and other  obligations and Liabilities  thereunder.
The parties expressly intend and agree that the beneficial  interest in and to
the Transferred  Contracts or Permits,  to the fullest extent permitted by the
relevant   Transferred   Contract  or  Permit  and  applicable  Law,  pass  to
Purchaser.   If  any  necessary  consent  to  assignment  of  any  Transferred
Contract or Permit cannot be obtained,  such Contract or Permit shall cease to
be a  Transferred  Contract,  and  Seller  shall  remain  responsible  for its
performance of such Contract,  and Seller shall be liable for all  Liabilities
under any such Contract or Permit,  including any Liabilities arising from any
termination  thereof  or breach or damage (or claim of breach or damage) to or
by any Person under or in respect of such Contracts and Permits.

Section 7.6.      Return  of   Excluded   Assets.   In  the   event,   through
inadvertence,  mistake or otherwise,  any Excluded  Assets are  transferred to
Purchaser,  Purchaser  agrees to  promptly  transfer  and  deliver the same to
Seller.

Section 7.7.      Solicitation  and  Hiring.  Prior  to the  Closing  Date and
until twelve  months  after the Closing  Date,  Seller shall not,  directly or
indirectly (including through an Affiliate or its parent company),  solicit or
attempt to induce any  employee of Seller to cease  working at the Facility or
make an offer of  employment  to any employee of Seller  without prior written
consent of Purchaser, which consent shall not be unreasonably withheld.

Section 7.8.      Confidentiality    Agreement.     Purchaser    and    Seller
acknowledge and agree that the  Confidential  Disclosure  Agreement dated July
7, 2003 by and between Aventis Pharmaceuticals,  Inc., Seller's parent company
and  Purchaser  (the  "Confidentiality  Agreement")  remains in full force and
effect,  and the  parties  will  abide by the  terms  and  conditions  of such
agreement.  Notwithstanding  the foregoing,  Aventis' technical and commercial
information that relates solely to the Purchased  Business shall become Inyx's
information at the Effective Time.

Section 7.9.        Product Manufacturing; Azmacort.

Raw Materials.  To the extent possible, Seller will use its best commercial
efforts to put in place, for an agreed-upon period of time, a mechanism
whereby Purchaser will have access to prices for raw materials and components
for Azmacort CFC inhaler that are comparable to what Seller is able to
obtain.  Such a mechanism could be effected by any of the following, or any
other mechanism on which the parties agree:  (i) Seller may enter into
contracts for the supply of such raw materials at Seller's prices and assign
them to Purchaser (preferred method); (ii) Seller may purchase such raw
materials from suppliers at Seller's prices and resell

* * * Confidential material redacted and filed separately with the Commission.
<PAGE>

CONFIDENTIAL TREATMENT

(a)   them to  Purchaser;  or,  (iii) Seller  may  arrange  for  Purchaser  to
purchase such raw materials through a manufacturers'  purchasing consortium at
Seller's prices.

(b)   Azmacort   Assignment   and   Assumption   Agreement.   Pursuant  to  an
assignment  and  assumption  agreement,  substantially  in the  form  attached
hereto as Exhibit 10 (the "Azmacort  Assignment  and  Assumption  Agreement"),
Seller shall transfer and assign all of Seller's Parent Company right,  title,
and  interest in and to that  certain  agreement  dated March 5, 2004,  by and
between Aventis  Pharmaceuticals Inc. and Aeropharm Technology,  Inc. relating
to the  manufacture  and  supply of  Azmacort  CFC  products  by  Seller  (the
"Azmacort  Supply  Agreement"),  and  Purchaser  shall  assume all of Seller's
liabilities and obligations  thereunder.  Seller shall obtain a consent letter
from KOS Pharmaceuticals,  Inc., and Aeropharm Technology, Inc. accepting such
assignment   and   assumption   and   agreeing  to  be  bound   thereby   (the
"KOS/Aeropharm  Consent") substantially in the form attached hereto as Exhibit
11. In return for such  assignment,  Purchaser  shall pay Seller a royalty for
each unit of Azmacort CFC products  Purchaser  manufactures and sells pursuant
to the Azmacort  Supply  Agreement  (the "Azmacort  Royalty").  On the Closing
Date,  Purchaser  shall pay  Seller as part of the  Purchase  Price a sum that
represents  the  parties'  estimate of the net present  value of the  Azmacort
Royalty from April 1, 2005,  through  December  31,  2006,  based on estimated
production  volume for the  remainder  of 2005 and the full year 2006.  At the
end of each  calendar year during the term of the Azmacort  Supply  Agreement,
Purchaser's  actual  production  volume shall be compared  with the  estimated
production  volume  for  the  same  period.  Purchaser  shall  pay  Seller  an
additional   Azmacort  Royalty  based  on  the  amount  by  which  the  actual
production  volume exceeds the estimated  volume for the period  compared.  If
the  estimated  volume  exceeds the actual  volume,  the amount of such excess
shall be added to the following  year's  estimate for the purpose of computing
the  following  year's  Azmacort  Royalty.  For  products  manufactured  after
December 31, 2006,  the Azmacort  Royalty  shall be paid  quarterly,  based on
actual  production  volume.  The precise amount of the Azmacort  Royalty,  the
estimated  production  volumes,  and the  computation of net present value and
year-end adjustments shall be set forth in a side letter between the parties.

(c)   Azmacort  Tooling at Valois.  At the Closing,  Seller  shall  deliver to
Purchaser a letter  signed by Aventis  Pharma Ltd.  ("APL") and Valois  S.A.S.
("Valois") governing  Purchaser's access to tooling and equipment owned by APL
and located at Valois'  facility in Le  Vaudreuil,  France,  solely for use in
connection  with  Purchaser's  manufacture  of Azmacort (the  "Tooling  Access
Letter"). The Tooling Access Letter shall contain terms including,  but not be
limited  to,  (i)  Purchaser's  obligations  to share pro rata the cost of all
maintenance,  repair and replacement of such tooling and equipment,  upon such
terms as the parties shall agree,  (ii)  Purchaser's use of and access to such
tooling  and  equipment  upon  the  same  terms  as  Seller,  subject  to such
additional  terms and  conditions  as the parties  shall  agree,  and (iii) an
acknowledgement  and agreement by Valois to accept and process  tooling orders
directly from  Purchaser,  provided that Purchaser  complies fully with all of
the terms and conditions set forth in the Tooling Access Letter.

Section 7.10.       Information   Systems.    Other   than   the   Transferred
Intangible  Property to be  transferred  to Purchaser as part of the Purchased
Business,  the only  obligations  of the  Seller  with  respect  to  providing
access,  rights  or  services  with  respect  to  the  Transferred  Intangible
Property  and/or any other  software used in connection  with the operation of
the Purchased  Business shall be set forth in a Transition  Services Agreement
substantially  in the form  attached  hereto  as  Exhibit  7 (the  "Transition
Services  Agreement").  The  parties  agree that the costs of  separating  the
information  systems at the Facility  from  Seller's  system's,  excluding the
costs of separating  Aventis'  document  management  systems,  shall be shared
equally  between  Purchaser and Seller;  provided,  that the amount payable by
Seller shall not exceed  Three  Hundred  Thousand  Dollars  ($300,000)  in the
aggregate.

            Section 7.11.     Non-Competition.  Except  for   products  to  be
manufactured  by Purchaser for Seller or any of its Affiliates  after the date
of this  Agreement,  for a period of five (5) years  after the  Closing  Date,
neither  Purchaser nor any of its  Affiliates  will develop,  manufacture  for
development,  manufacture for commercial purposes, market, sell, distribute or
promote any Restricted Product in any of the Restricted Territories,  or enter
into any  agreement  that  would  permit or assist a third  party to do so. If
for  any  reason  the  Closing  does  not  occur,   the   provisions   of  the
Confidentiality  Agreement  shall continue to apply to information  related to
the  Restricted  Products for a period of 18 months  beyond the  expiration of
the Confidentiality Agreement.

            Section  7.12 Tax  Credits.  Seller  shall  cooperate  fully  with
Purchaser  in  connection   with   Purchaser's   requests  to  be  filed  with
Governmental  Authorities  for tax credits with respect to the purchase of the
Purchased Business under the Tax Incentive Act of 1998, as amended.

            Section 7.13 Post-Closing  Agreement.  At the Time of Closing, the
parties  shall enter into an  agreement  governing  services to be provided by
Purchaser  to  Seller  subsequent  to  the  Closing  Date  (the  "Post-Closing
Agreement").  All services  shall be provided by Purchaser at cost without any
mark-up and include,  (i) conducting  on-going  stability  studies and testing
for  Nasacort  AQ and other  product  reasonably  requested  by  Seller;  (ii)
manufacturing  product(s)  produced at the facility  prior to the Closing Date
for  such  time  reasonably  required  by  Seller  prior  to  removal  of such
product(s) by Seller to an alternate  manufacturing  site;  (iii) serving as a
backup  manufacturer  for  product(s)  produced at the  Facility  prior to the
Closing  Date;  (iv)  compiling  and  providing   information  in  support  of
financial  filings,  audits,  or other similar matters as requested by Seller;
(v)  providing  access to data or other  information  reasonably  requested by
Seller;  and (vi) providing any other services  reasonably deemed necessary by
Seller  following  the sale of the  Purchased  Business.  Notwithstanding  the
foregoing,  there shall be no charge for any  services  Purchaser is otherwise
obligated  to  provide  pursuant  to this  Agreement,  specifically  including
Sections 4.6 and 4.7 hereof.

Section 7.14 Product Supply Agreement.  At the Time of Closing, the parties
shall enter into an agreement pursuant to which Purchaser agrees to
manufacture, package, label and supply certain finished products to Seller's
Affiliate, Aventis Pharmaceuticals Inc., including products for its Dermik
Laboratories division (the "Product Supply Agreement").  Throughout the
entire term of the agreement, pricing for services and materials shall be
provided at Seller's *

* * * Confidential material redacted and filed separately with the Commission.
<PAGE>

CONFIDENTIAL TREATMENT

            * * ; subject  to an  adjustment  * * * The  parties  shall  enter
into a technical  agreement in connection  with the Product  Supply  Agreement
(the "Product Supply Technical Agreement").

            Section  7.15.  Klaron  Agreement.  At the  Time of  Closing,  the
parties shall enter into an agreement  relating to the manufacturing of Klaron
by Purchaser for Seller at a price of * * *  for Klaron trade products* * * .

            Section  7.16     Net  Worth   Covenant.   In  order  to   provide
reasonable  assurance of Purchaser's  ability to fulfill its obligations under
Section  6.5, for so long as Purchaser  owns the  Acquired  Assets  during the
Sharing Period,  Purchaser agrees to maintain a net worth of at least * * * By
March 31 annually  during the Sharing  Period,  Purchaser shall provide Seller
with a certificate signed by Purchaser's  President or Chief Financial Officer
certifying  that  Purchaser  maintained  a net  worth of not  less  than * * *
(determined  in accordance  with GAAP,  consistently  applied)  throughout the
preceding  calendar  year.  Purchaser  agrees  that  (i)  during  the  Sharing
Period in the case of transfers  to  Purchaser's  Affiliates;  and (ii) during
the first five years of the  Sharing  Period in the case of  transfers  to any
Person  that  is not an  Affiliate,  Purchaser  will  not,  other  than in the
ordinary  course of business,  transfer to, or permit the  encumbrance  of the
Acquired  Assets by, any Person  that will not agree to assume and be bound by
all of Purchaser's obligations under this Section 7.16 and Section 6.5.

            Section 7.17      Purchaser's   Parent  Guaranty.   Simultaneously
with the execution and delivery of this Agreement,  Purchaser shall deliver to
Seller a Purchaser's  Parent  Guaranty in the form of Exhibit 12,  executed by
Inyx,  Inc.  ("Purchaser's  Parent  Company"),  in  which  Purchaser's  Parent
Company  absolutely,  unconditionally  and  irrevocably  guarantees to Seller,
jointly and severally with Purchaser,  the due and punctual performance of the
obligations of Purchaser  under this  Agreement and the Related  Agreements in
the event  that  Purchaser  fails to perform  or comply  with its  obligations
hereunder  or  thereunder,  without  any  counterclaim,   set-off,  deduction,
abatement or defense based upon any claim that Purchaser's  Parent Company may
have against  Seller;  provided,  however,  that  Purchaser's  Parent Guaranty
shall not apply to  Purchaser's  obligations  under  Section  6.5 and  Section
7.16.

            Section 7.18 Seller's  Parent  Guaranty.  Simultaneously  with the
execution and delivery of this Agreement,  Seller shall deliver to Purchaser a
Seller's  Parent  Guaranty  in the form of  Exhibit  13  executed  by  Aventis
Pharmaceuticals  Inc.  ("Seller's Parent  Company"),  in which Seller's Parent
Company absolutely,  unconditionally and irrevocably  guarantees to Purchaser,
jointly and severally  with Seller,  the due and punctual  performance  of the
obligations of Seller under this  Agreement and the Related  Agreements in the
event that Seller is dissolved,  liquidated or becomes insolvent,  or fails to
perform or comply with its  obligations  hereunder or thereunder,  without any
counterclaim,  set-off,  deduction,  abatement or defense based upon any claim
Seller's Parent Company may have against the Purchaser.

                                 ARTICLE VIII
                               EMPLOYEE MATTERS

Section 8.1.      Benefit Plans.

(a)   Except as specifically  set forth in this Agreement,  (i) Purchaser will
not assume any of the Benefit  Plans,  or any rights,  duties,  obligations or
liabilities  therewith,  nor  shall  it  become  a  successor  employer  or be
responsible  in any  way  for  Seller's  participation  in or  obligations  or
responsibilities  with  respect to any Benefit  Plan,  (ii) Seller will retain
all such Benefit Plans,  including all obligations  and  liabilities  deriving
directly or  indirectly  from  sponsoring  or  participating  in such  Benefit
Plans;  and  (iii)  Purchaser  will  not be  responsible  for  obligations  to
employees  relating to periods prior to the  Effective  Time,  including,  for
example, unpaid medical claims and unused employee deferral accounts.

(b)   All  employees  of Seller on the Closing Date who accept  employment  by
Purchaser  immediately  following  the Closing Date shall be given full credit
for  all  time   worked  for  Seller  for   purposes  of   determining   their
participation  and vesting under any of the benefit plans that are established
by Purchaser (at its sole  discretion)  that are applicable to such employees,
except for the purpose of benefit accrual.

(c)   To the extent legally  possible,  Seller and Purchaser  shall  cooperate
and use their  reasonable  Best  Efforts to provide  for  participants  in the
Aventis  Pharmaceuticals  Puerto  Rico  Savings  Plan (the  "Seller's  Savings
Plan") who are employed by Purchaser  immediately  following  the Closing Date
to  continue  to  repay  their  loans  under  the  Seller's  Savings  Plan  in
accordance with their original repayment schedule.

Section 8.2.      COBRA.   To  the  extent  required  by  applicable  law  and
regulations,   up  to  and  including  the  Closing  Date,   Seller  shall  be
responsible  for providing the  continuation  of health  coverage  required by
Section  4908B of the U.S.  Internal  Revenue  Code and Section 601 et seq. of
ERISA ("COBRA") to Merger & Acquisition Qualified  Beneficiaries (as such term
is defined in  applicable  Internal  Revenue  Service  Regulations)  and their
"qualified  beneficiaries" regarding all qualifying events occurring prior to,
or in  connection  with,  the  sale of the  Purchased  Business.  Seller  will
maintain a group  health plan in Puerto  Rico for this  purpose as long as any
Merger & Acquisition  Qualified  Beneficiary,  or any qualified beneficiary of
such  person,  who has elected  COBRA  coverage  is eligible to receive  COBRA
benefits.  Seller will notify Merger & Acquisition Qualified  Beneficiaries on
or before the Closing Date that the period  during which they will be eligible
for COBRA  benefits  will run  concurrently  with the period during which such
persons are eligible to receive  employer-paid health benefits pursuant to the
Separation  Plan.  After such  period of  employer-paid  health  benefits  has
elapsed,  the cost of any such person's  participation in Seller's health plan
during the remaining COBRA  continuation  period, if any, will be paid by such
Merger & Acquisition  Qualified  Beneficiary in accordance with the provisions
of COBRA and  applicable  regulations.  After the Closing  Date, to the extent
required by applicable  law and  regulations,  Purchaser  shall be responsible
for  providing  COBRA  continuation   coverage  to  all  employees  who  begin
employment  with  Purchaser and their  respective  "qualified  beneficiaries",
whenever it is so  required in  accordance  with the  provisions  of COBRA and
applicable  regulations.  Purchaser  shall  indemnify,  defend and hold Seller
harmless (and its directors,  officers,  employees and affiliates) against any
and all Damages  asserted or imposed  against  Seller  based upon  Purchaser's
failure to comply with its duties under COBRA, as legally required.

* * * Confidential material redacted and filed separately with the Commission.
<PAGE>

CONFIDENTIAL TREATMENT

Section 8.3.      Separation Benefits.

(a)   Reimbursement  for  Separation  Benefits.  Although  Purchaser  will not
adopt Seller's Separation Plan,  Purchaser shall reimburse Seller for Seller's
cost of all separation  benefits payable with respect to Seller's employees in
accordance  with the terms of the  Separation  Plan  ("Separation  Benefits").
Seller  shall  require  each  employee  who is eligible to receive  Separation
Benefits to execute,  as a condition of receiving such benefits,  an agreement
including a release and waiver of liability in favor of Seller and  Purchaser.
* * * such  former  employee  shall  receive  full  credit for the  employee's
seniority  with Seller.  Notwithstanding  the foregoing,  Purchaser  shall pay
employees  pursuant  to  statutory  severance  benefit  guidelines,  with full
credit for seniority with Seller,  if the statutory  benefits are greater than
benefits that would have been provided  under the Separation  Plan.  Purchaser
shall indemnify,  defend, and hold harmless Seller, its affiliates,  and their
respective  present  or  former  directors,  officers,  shareholders,  agents,
representatives  and employees from and against any Damages  arising out of or
resulting from the  termination or lay-off by Purchaser of, or other action by
Purchaser  with  respect to, any former  employee  of Seller  giving rise to a
benefit obligation under the Separation Plan.

(b)                Mechanism  for   Reimbursement   of  Separation   Benefits.
Purchaser will reimburse Seller for Separation Benefits as follows:

                  (i)   Escrow  Account - Purchaser  will  establish an escrow
      account  with an escrow  agent  reasonably  acceptable  to  Seller  (the
      "Escrow  Agent") where,  no later than March 31, 2005,  Purchaser  shall
      deposit in an  interest-bearing  trust  account  an amount  equal to the
      Income  Protection  Pay (as defined in the  Separation  Plan) payable to
      each  eligible  employee of Seller whose  employment  is  terminated  by
      Seller  effective  March 31, 2005, and who has not been offered,  or who
      has declined a  non-Comparable  Position  (as defined in the  Separation
      Plan) with Purchaser (the  "Separated  Employees").  Purchaser  shall be
      entitled  to any  interest  earned  on  funds  deposited  in the  Escrow
      Account.

                  (ii)  Weekly Submission of Waivers and Benefits  Calculation
      - On a weekly basis  following  March 31,  2005,  Seller shall submit to
      the Escrow Agent copies of the signed  waiver and release  agreements of
      Separated  Employees  with  respect to whom  Seller  has not  previously
      submitted  copies  of  such  waiver  agreements  to  the  Escrow  Agent.
      Promptly  upon,  but no later  than two  business  days  following,  its
      receipt  of such  agreements  and a written  computation  of the  Income
      Protection Pay payable to each Separated  Employee for whom an agreement
      is submitted,  the Escrow Agent shall disburse to Seller from the Escrow
      Account  the funds  required  to pay the Income  Protection  Pay to such
      Separated Employees.

                  (iii) Liquidation of Escrow Account.  Any funds remaining in
      the Escrow  Account  after June 30,  2005,  may be returned to Purchaser
      and the Escrow  Account  may be  closed,  provided,  however,  that such
      action shall not affect  Purchaser's  obligation to reimburse Seller for
      Separation Benefits.

                  (iv)  Reimbursement  for  costs of  Health  Care and  Dental
      Coverage.   Purchaser  shall  reimburse  Seller  for  Seller's  cost  of
      providing  health  care and dental  coverage  (as  opposed to the actual
      health and dental costs  incurred) to Separated  Employees  who elect to
      continue  such  coverage with Seller  pursuant to the  Separation  Plan.
      Seller  shall  invoice   Purchaser  for   reimbursement  of  such  costs
      monthly.

(c)     Waiver   Requirement  -  Purchaser   shall  require  all  of  Seller's
employees at the Closing Date who accept offers of employment  with  Purchaser
beginning  immediately  following the Closing Date to waive, as a condition of
such offer,  participation  in and all benefits under the Separation Plan, and
to  release  Purchaser  from any  liability  to such  employees  under  any of
Seller's  Benefit Plans.  Employees will not be asked to waive any right under
Act 80, and their  service  time with Seller will be credited  for purposes of
any Act 80 severance  calculation.  Purchaser  shall  indemnify,  defend,  and
hold harmless Seller,  its affiliates,  and their respective present or former
directors, officers, shareholders,  agents, representatives and employees from
and  against any Damages  arising  out of or  resulting  from claims by former
eligible  employees  of Seller at the Closing  Date who accept  employment  by
Purchaser   immediately  following  the  Closing  Date.  Each  party  will  be
responsible for their respective legal fees and expenses.

(d)               Union  Employees - With respect to those  employees  covered
by the  Collective  Bargaining  Agreement,  references in this section to "the
Separation  Plan" and  "Separation  Benefits"  shall mean such benefits as are
agreed  upon by the Seller and the  collective  bargaining  representative  of
such  employees,  and  "Income  Protection  Pay"  shall  mean any  counterpart
benefit  agreed  upon  with  such  representative.   Purchaser  shall  not  be
required  to  reimburse  Seller to the  extent  any such  separation  benefits
exceed the Separation  Benefits such employees would have received if they had
been eligible for Separation Benefits under the Separation Plan.

Section 8.4.      WARN Act.  Seller shall be responsible  for all Damages,  if
any,  arising under the Worker  Adjustment and Retraining  Notification Act of
1988  ("WARN")  including  all  Damages  imposed  or  incurred  as a result of
Seller's  failure to give any  requisite  WARN notice  prior to the  Effective
Time.  After the Effective Time,  Purchaser shall be responsible for providing
notice to the  employees  hired by  Purchaser  for any plant  closing  or mass
lay-off in accordance with the WARN Act.

                                  ARTICLE IX
                                MISCELLANEOUS

Applicable Law and Jurisdiction.  This Agreement shall be governed by and be
construed in accordance with the Laws of the Commonwealth, without giving
effect to any choice or conflict of law provision or rule (whether of the
Commonwealth or any other jurisdiction) that would cause the application of
laws of any jurisdictions other than those of the Commonwealth.  Each party
(a) submits to the jurisdiction of any federal court sitting in the State of
New Jersey or in the Commonwealth in any action or proceeding arising out of
or relating to this Agreement or any Related Agreement, (b) agrees that all
claims in

* * * Confidential material redacted and filed separately with the Commission.
<PAGE>

CONFIDENTIAL TREATMENT

Section 9.1.      respect  of such  action  or  proceeding  may be  heard  and
determined  in  any  such  court,  (c)  agrees  not to  bring  any  action  or
proceeding  arising  out of or  relating  to  this  Agreement  or any  Related
Agreement  in any other  court and (d) waives any right it may have to a trial
by jury with  respect to any action or  proceeding  arising out of or relating
to this  Agreement  or any Related  Agreement.  Each party  hereby  waives any
defense of  inconvenient  forum to the maintenance of any action or proceeding
so  brought  and  waives  any bond,  surety or other  security  that  might be
required  of the  other  party  with  respect  thereto.  Each  party  may make
service on the other party by sending or  delivering  a copy of the process to
the party to be served  at the  address  and in the  manner  provided  for the
giving of notices in Section 9.3.

Nothing in this Section 9.1, however, shall affect the right of a party to
serve legal process in any other manner permitted by law.

Section 9.2.      Dispute  Resolution.  If,  after the  Closing,  the  parties
have any dispute  arising out of or  relating to this  Agreement,  the Related
Agreements or the parties' respective rights and duties hereunder  (including,
but not limited to, any breach thereof,  the validity or enforceability of any
provisions hereof, and any indemnification  claim) (in each case a "Dispute"),
then, except as otherwise  expressly  provided in this Agreement,  the parties
will resolve such Dispute in the following manner:

(a)   Any  party  may at any  time  deliver  to the  other  a  written  notice
identifying a Dispute (the "Dispute  Notice").  Within  thirty (30) days after
delivery of the Dispute Notice,  the receiving party shall submit to the other
a written  response.  The Dispute Notice and the response  thereto shall state
with  particularity  the facts and  conditions  giving rise to the Dispute and
shall  include  (i) a  statement  of each  party's  position  and a summary of
arguments  supporting that position and (ii) the name and title of the Persons
who  will  represent   that  party  in  the   negotiations   contemplated   by
Section 9.2(b) below.

(b)   Within  ninety (90)  days after  delivery  of the  Dispute  Notice,  the
designated  representatives  of both  parties  shall  attempt in good faith to
resolve the Dispute  and shall meet at a mutually  acceptable  time and place,
and  thereafter  as often as they  reasonably  deem  necessary,  to attempt to
resolve the Dispute.  All negotiations  pursuant to this Section 9.2(b)  shall
be   confidential   and  shall  be  treated  as  compromise   and   settlement
negotiations for purposes of applicable rules of evidence.

(c)   If the  representatives of the parties are unable to resolve the Dispute
through  negotiations  within  ninety (90)  days after delivery of the Dispute
Notice then the parties may pursue all available remedies.

Section 9.3.      Notices.  Any and all  communications  required  as provided
for in this  Agreement  shall be in  writing  and sent by  first  class  mail,
postage  prepaid,  return receipt  requested or by an express  courier service
(e.g.,  Federal Express or UPS),  prepaid,  with confirmation of delivery,  or
via  facsimile  confirmed by any of the  foregoing  methods,  and addressed as
follows or to such other address or person as either party or person  entitled
to notice may specify by notice to the other) (a "Notice"):

            Any Notice to be given to Seller shall be addressed to:

                  Aventis Pharmaceuticals Puerto Rico, Inc.
                  c/o Aventis Pharmaceuticals
                  300 Somerset Corporate, Blvd.
                  Bridgewater, NJ 08807
                  Attention: General Counsel
                  Facsimile: (908) 243-7219

            With a copy to:

                  McConnell Valdes
                  270 Munoz Rivera Avenue
                  9th Floor, Hato Rey
                  San Juan, Puerto Rico 00918
                  Attention:  Antonio Escudero-Viera
                  Facsimile: 787-759-2710

            Any Notice to be given to Purchaser shall be addressed to:

                  INYX USA, LTD.
                  604 San Jose Industrial Zone Cotto Norte
                  Manati, Puerto Rico 00674-0345
                  Attention:  Inyx Facility Coordinator
                  Facsimile:  [To be provided]

            With a copy to:

                  Fiddler Gonzalez & Rodriguez, PSC
                  PO Box 363507
                  San Juan, PR 00936-3507
                  Attention: Jose Julian Alvarez
                  Facsimile: (787) 759-3123

            and to:

                  Bennett Jones LLP
                  1000 ATCO Centre
                  10035 105th Str
                  Edmonton, Alberta
                  Canada T5J 3T2
                  Attention:  Enzo J. Barichello, Q.C.
                  Facsimile:  780-421-7951

* * * Confidential material redacted and filed separately with the Commission.
<PAGE>

CONFIDENTIAL TREATMENT

            and to:

                  INYX, INC.
                  825 Third Avenue, 40th Floor
                  New York, NY  10022
                  Attention: Dr. Jack Kachkar MD
                  Chairman & Chief Executive Officer
                  Facsimile (212) 838-0060

      Unless  otherwise  specified,  Notices  shall be deemed  given  (i) when
received,  if delivered by  facsimile,  provided  subsequent  confirmation  is
given as  provided  herein,  (ii) on the  third  (3rd)  day  after the same is
deposited  with  the  United  States  Postal  Service,  or  (iii) on  the  day
following  deposit with an express courier  service  (provided such deposit is
made in a timely  fashion on or prior to the deadline for receipt of documents
for next-day delivery).

      Any change in  address  of a party  shall be  promptly  communicated  in
writing to the other party.

Section 9.4.      Amendments.   This  Agreement  may  be  amended  only  by  a
written instrument duly executed and delivered by Seller and Purchaser.

Section 9.5.      Entire  Agreement;  Waiver,  Modifications.  This Agreement,
together  with the other  agreements  referred to herein,  constitutes a final
and  complete  statement  of all of the  arrangements  among the parties  with
respect   to  the   transactions   contemplated   hereby   and   thereby.   No
modification,  discharge,  or  waiver,  in  whole  or in  part,  of any of the
provisions  hereof  shall be valid  unless in writing  and signed by the party
against whom the same is sought to be  enforced.  A failure or omission of any
party to insist, in any instance,  upon strict performance by another party of
any term or  provision  of this  Agreement  or to  exercise  any of its rights
hereunder shall not be deemed a modification  of any term or provision  hereof
or a waiver or  relinquishment  of the future  performance of any such term or
provision  by such  party,  nor shall such  failure or omission  constitute  a
waiver  of the  right of such  party to  insist  upon  future  performance  by
another  party of any such term or provision or any other term or provision of
this Agreement.

Section 9.6.      Termination.  Anything  herein or  elsewhere to the contrary
notwithstanding,  this  Agreement may be terminated  and abandoned at any time
before the Closing under one or more of the following circumstances:

(a)   by mutual consent in writing of Seller and Purchaser;

(b)   by Seller or Purchaser,  in writing,  if the Closing has not occurred by
May 1, 2005,  because any of the  conditions  set forth in  Section 4.2 or 4.3
have  not  been  satisfied,  provided  that a  party  may  not  terminate  the
Agreement  pursuant to this  Section 9.6(b) if the Closing has not occurred by
reason  of a  breach  by  such  party  of any of its  obligations  under  this
Agreement; or

               (c)      by Seller, pursuant to Section 6.5(a)(iii).

Section 9.7.      Effect  of  Termination.  In the  event  this  Agreement  is
validly  terminated  pursuant to Section 9.6,  the parties  shall no longer be
obligated to proceed to the Closing,  but all causes of action  accruing prior
to the termination of this Agreement shall survive  including causes of action
for Damages  arising out of the breach of any  covenant or  representation  or
warranty.

Section 9.8.      Interpretation.   The   headings  in  this   Agreement   are
intended  solely for  convenience of reference and shall be given no effect in
the  construction  or  interpretation  of this  Agreement.  Unless the context
otherwise requires,  the singular includes the plural, and the plural includes
the singular.

Section 9.9.      No  Assignment;   Binding  Effect.  This  Agreement  is  not
assignable  by any  party  without  the  prior  written  consent  of the other
party.  Notwithstanding  the  foregoing,  Purchaser  or Seller may assign this
Agreement in whole or in part to any of its Affiliates,  but in no event shall
such  an  assignment   release  such  assigning  party  from  its  obligations
hereunder.  This  Agreement  shall  be  binding  upon and  shall  inure to the
benefit of the parties  hereto and their  respective  successors and permitted
assigns.

Section 9.10.     Invalidity.   In  the  event  that  any  provision  of  this
Agreement  is  declared to be void or  unenforceable,  the  remainder  of this
Agreement  shall not be affected  thereby  and shall  remain in full force and
effect to the extent  feasible  in the  absence of the void and  unenforceable
declaration.  The  parties  furthermore  agree to  execute  and  deliver  such
amendatory   contractual  provisions  to  accomplish  lawfully  as  nearly  as
possible  the  goals  and  purposes  of the  provision  so  held to be void or
unenforceable.

Section 9.11.     Counterparts.  This  Agreement  may be  executed in multiple
counterparts,  each of which  shall be  deemed  an  original  but all of which
together shall constitute one and the same instrument.

Section 9.12.     Incorporation  by Reference.  The  Disclosure  Schedules and
other Schedules and Exhibits  constitute  integral parts of this Agreement and
are hereby incorporated by reference herein.

Section 9.13.     Time of the  Essence.  With  regard  to all  dates  and time
periods set forth or referred to in this Agreement, time is of the essence.

Section 9.14.     No Third Party  Beneficiaries.  The terms and  provisions of
this  Agreement are intended  solely for the benefit of the parties hereto and
their  respective  successors  and  permitted  assigns,  and  it  is  not  the
intention of the parties hereto to confer third party beneficiary  rights upon
any other Person.

* * * Confidential material redacted and filed separately with the Commission.
<PAGE>

CONFIDENTIAL TREATMENT

Section 9.15.     Public  Announcements.  The parties shall mutually agree on,
prepare and jointly  release any press releases or  announcements  relating to
the transactions  contemplated by this Agreement;  provided,  however,  that a
party  hereto  may make any public  disclosure  it  believes  in good faith is
required  by  applicable  Law,  or  stock  market  rule  (in  which  case  the
disclosing  party  shall use  reasonable  efforts to advise the other party or
parties and provide it or them with a copy of the  proposed  disclosure  prior
to making the  disclosure.)  Each of the  parties  agree not to  disclose  the
terms  (including the Purchase  Price) of this  Agreement  without the written
consent of the parties;  provided,  however,  that a party hereto may make any
public  disclosure it believes in good faith is required by applicable Law, or
stock  market rule (in which case the  disclosing  party shall use  reasonable
efforts to advise the other  party or  parties  and  provide it or them with a
copy of the proposed disclosure prior to making the disclosure.)

Section 9.16.     Facsimile   Signature.   Any  facsimile  signature  attached
hereto  shall be deemed to be an  original  and shall  have the same force and
effect as an original signature.

Section 9.17.     Expenses.  Except as  otherwise  expressly  provided in this
Agreement,   whether  or  not  the   transactions   contemplated   hereby  are
consummated,  each party hereto shall pay its own costs and expenses  incurred
in connection  with the  negotiation,  execution and closing of this Agreement
and the  Related  Agreements  and the  transactions  contemplated  hereby  and
thereby.  In the event of  termination  of this  Agreement,  the obligation of
each  party to pay its own  expenses  will be  subject  to any  rights of such
party arising from a breach of this Agreement by another party.

Section 9.18.     Bulk  Sales  Law.  Purchaser  hereby  waives  compliance  by
Seller with the laws of any  jurisdiction,  including  without  limitation the
laws of the  Commonwealth,  relating to bulk transfers which may be applicable
in  connection  with the  transfer of the  Purchased  Business  to  Purchaser.
Seller  agrees  to  indemnify  and hold  harmless  Purchaser  for any  Damages
arising out of Seller's non-compliance with the corresponding bulk sales laws.

              [Remainder of this page left blank intentionally.]

* * * Confidential material redacted and filed separately with the Commission.
<PAGE>

CONFIDENTIAL TREATMENT

            IN WITNESS WHEREOF,  the parties,  intending  legally to be bound,
have caused this  Agreement to be duly  executed  and  delivered as of the day
and year first herein above written.

                                    SELLER:

                                    AVENTIS PHARMACEUTICALS
                                    PUERTO RICO INC.

                                    By:    _/s/__Monte Phipps_____________
                                           Name: Monte Phipps
                                           Its:  President

                                    By:     /s/ Owen K. Ball, Jr.__________
                                           Name: Owen K. Ball, Jr.
                                           Its:  Secretary

                                    PURCHASER:

                                    INYX USA, LTD.

                                    By:    __/s/ Jack Kachkar________
                                           Name: Dr. Jack Kachkar
                                           Its:  Chairman and Chief Executive

* * * Confidential material redacted and filed separately with the Commission.
<PAGE>

CONFIDENTIAL TREATMENT

                               LIST OF EXHIBITS

Exhibit 1   Assumption Agreement

Exhibit 2   Excluded Assets

Exhibit 3   General Assignment

Exhibit 4   Real Property

Exhibit 5   Seller's Separation Plan

Exhibit 6   Tangible Personal Property

Exhibit 7   Transition Services Agreement

Exhibit 8   Form Deed of Purchase and Sale

Exhibit 9   Seller's Certificate Regarding Books and Records

Exhibit 10  Azmacort Assignment and Assumption Agreement

Exhibit 11  Consent to Assignment

Exhibit 12  Purchaser's Parent Guaranty

Exhibit 13  Seller's Parent Guaranty

* * * Confidential material redacted and filed separately with the Commission.
<PAGE>

CONFIDENTIAL TREATMENT

                         LIST OF DISCLOSURE SCHEDULES

Section 1.1(i)           Prepaid Expenses

Section 1.1(j)           Vehicles

Section 1.1(k)           Security Deposits

Section 2.2              Assumed Liabilities

Section 3.1              Purchase Price Allocation

Section 3.5              Purchased Inventory

Section 5.1(d)           Governmental Approvals and Filings
Section 5.1(e)           Legal Proceedings
Section 5.1(f)           Compliance with Laws and Orders
Section 5.1(g)           Employee Benefit Plans
Section 5.1(h)(i)        Real Property
Section 5.1(h)(ii)       Personal Property
Section 5.1(j)           Material Contracts
Section 5.1(k)           Permits
Section 5.1(l)           Insurance
Section 5.1(m)           Environmental Liabilities
Section 5.1(m)(iii)      Environmental Matters - RCRA
Section 5.1(o)           Absence of Certain Changes or Events
Section 5.1(q)(i)        List of Current Employees
Section 5.1(q)(ii)       Collective Bargaining Agreement and Employment
                         Agreements

Section 5.1(q)(iii)     Compliance with Labor Laws

Section 5.1(q)(iv)      Labor Disputes, Grievances or Litigation

Section 5.1(q)(vi)      Material Labor Controversies

Section 5.1(q)(vii)     Labor Notices From Government and Labor Organizations

Section 5.1(q)(viii)    Agreements Related to Employment Separation

Section 5.1(r)          Transferred Intangible Property
Section 5.1(w)          Product Warranty
Section 7.3(a) (vii)    Negative ConvenantsExhibit 10.1

January 26, 2005

D'Anne Hurd

Dear D'Anne,

On behalf of NMS Communications, we are pleased to offer you the position
of Financial Consultant working out of the Framingham office and reporting to
Bob Schechter, Chief Executive Officer. It is expected that you will assume the
role of Senior Vice President Finance, Chief Financial Officer, and Treasurer on
March 16, 2005. For your initial assignment your base compensation will be paid
at the gross rate of $4,326.93 bi-weekly, which on an annual basis is $112,500.
After your appointment to Senior Vice President, Finance & Treasurer & Chief
Financial Officer you will be paid at the gross rate of $8,653.85 bi-weekly,
which on an annual basis is $225,000. You will also be eligible for a target
bonus of 50% of your base salary (in 2005 this bonus will be guaranteed at a
minimum of 25% achievement), resulting in an On Target Earnings (OTE) of
$337,500.

In addition to the above compensation, you will be entitled to participate
in the Company Stock Option Program at the level of 175,000 shares priced at the
close of market on your start date. As a full-time employee you will be eligible
to participate in the complete NMS Communications benefit package. A copy of the
NMS Benefits Summary is enclosed with this letter.

This offer of employment is contingent upon your agreement to our standard
Employee Non-Compete and Confidentiality Agreement, a copy of which is enclosed
with this letter as well as a satisfactory background check. Please indicate
your acceptance to both the employment offer and the Employee Non-Compete and
Confidentiality Agreement by signing in the indicated space on the enclosed
copies, returning one copy to Human Resources and retaining one copy for your
files.

The Immigration Reform and Control Act require employers to verify the
employment eligibility and identity of new employees. You will need to complete
the top section of the enclosed Form I-9 and bring it, together with the
appropriate documents listed under Part 2, with you when you report for work. We
will not be able to employ you if you fail to comply with this requirement.

Your response of acceptance to this offer of employment must be made prior
to close of day on January 28, 2005. We sincerely hope that this offer meets
with your approval and that you can start on January 31, 2005.

Our entire team warmly anticipates the strong contribution you can make to
NMS Communications and welcomes your participation in building a successful
company. If you have any questions, please call me at (508) 271-1392.

Sincerely,

/s/ Jamie Toale

Jamie Toale
VP, Human Resources

Enclosures

Accepted:        /s/ D'Anne Hurd                         Date:  January 28, 2005
                 ---------------------------------------        ----------------

Start Date: January 31, 2005
            ----------------

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