Document:

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                                                                    Exhibit 10.5

Innovative Drug Delivery Systems, Inc.
September 22, 2000

CONFIDENTiAL

Dr. Donald B. Morel Sr,, Division President
West Pharmaceutical Services, Inc.
101 Gordon Drive
Lionville, PA 19341

Re: Letter Agreement

Dear Don:

This letter shall serve as our agreement that Section 4.1 of the License
Agreement between West Pharmaceutical Services, Inc., its wholly owned
subsidiary West Pharmaceutical Services Drug Delivery & Clinical Research Centre
Ltd. and Innovative Drug Delivery Systems, Inc. is hereby amended in its
entirety to read as follows:

4.1 License Fees. IDDS shall pay to West the amount of $2,250,000 on or before
September 27, 2000.

If this is acceptable to you, kindly execute this Letter Agreement where
appropriate and return a copy to me at your earliest convenience.

Thank you.

                                    Sincerely,

                                    Mark C. Rogers, M.D.
                                    Chairman

WEST PHARMACEUTICAL SERVICES, INC.

By:  /s/ Donald E. Morel Jr.
   ----------------------------------------------
         Donald E. Morel Jr., Division President,
         Drug Delivery Systems

WEST PHARMACEUTICAL SERVICES DRUG DELIVERY &
CLINICAL RESEARCH CENTRE LTD.

By:  /s/ Donald E. Morel Jr., Chairman
   ----------------------------------------------
         Donald E. Morel Jr., Chairman

                       787 Seventh Avenue 48th Floor New York, NY 10019
                        Tel: 212-554-4351 Fax: 212-554-4490<PAGE>

                                                                    Exhibit 10.6

[WEST PHARMACEUTICAL SERVICES LOGO]

Certain confidential portions of this Exhibit were omitted by means of blackout
of the text (the "Mark"). This Exhibit has been filed separately with the
Secretary of the Securities and Exchange Commission without the Mark pursuant to
the Company's Application for Order Granting Confidential Treatment pursuant to
Rule 406 under the Securities Act of 1933, as amended.

                       WEST PHARMACEUTICAL SERVICES, INC.

                         And its wholly owned subsidiary

                   WEST PHARMACEUTICAL SERVICES DRUG DELIVERY
                         & CLINICAL RESEARCH CENTRE LTD.

                                       And

                     INNOVATIVE DRUG DELIVERY SYSTEMS, INC.

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

                   DEVELOPMENT MILESTONE AND OPTION AGREEMENT

                                (Nasal Morphine)

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

                            Dated September 22, 2000

<PAGE>

                   DEVELOPMENT MILESTONE AND OPTION AGREEMENT

         THIS IS A DEVELOPMENT MILESTONE AND OPTION AGREEMENT (the "Agreement"),
dated as of September 22, 2000 (the "Effective Date"), among West Pharmaceutical
Services, Inc., a Pennsylvania corporation, ("West") with offices at 101 Gordon
Drive, Lionville, PA, 19341, its wholly owned subsidiary West Pharmaceutical
Services Drug Delivery & Clinical Research Centre Ltd., a corporation organized
under the laws of England and Wales, ("West/Nottingham") with offices at Albert
Einstein Centre, Nottingham Science & Technology Park, University Boulevard,
Nottingham, NG7 2TN, United Kingdom (West and West/Nottingham collectively being
referred to herein as the "West Group"); and Innovative Drug Delivery Systems,
Inc., a Delaware corporation, ("IDDS") with offices located at 787 Seventh
Avenue, New York, New York 10019.

                                   Background

         The West Group has completed pre-clinical development work for the
development of a product for administering morphine via the nasal mucosa using
its patented and proprietary delivery technology. The Parties have entered into
a License Agreement as of August 25, 2000 (the "License Agreement") under which
West and West/Nottingham have granted IDDS exclusive worldwide rights to exploit
such technology to make, use and sell certain Identified Products, including
morphine, for the treatment of pain in humans and animals.

         IDDS desires to conduct further development work and to pay West
certain milestone payments with respect thereto, and also desires to grant West
an option to manufacture commercial quantities of the developed products, all on
the terms and conditions set forth herein.

                                    Agreement

         Accordingly, intending to be legally bound, the Parties agree as
follows:

1.       Definitions. Terms defined in this Section 1 and parenthetically
         elsewhere in this Agreement will throughout this Agreement have the
         meanings here or there provided. Defined terms may be used in the
         singular or in the plural, as sense shall require.

         1.1.     "Affiliate" means, with respect to any Party, an entity, over
                  50% of the voting securities of which are directly or
                  indirectly controlled by such Party, or an entity that
                  directly or indirectly controls over 50% of the voting
                  securities of such Party.

         1.2.     "Background IP" means know-how, knowledge, experience,
                  inventions, processes, technical information, trade secrets,
                  formulas, protocols, data and results (and any patents and
                  patent applications claiming any of the foregoing) arising
                  from or acquired outside the development activities under this
                  Agreement that is necessary or useful for practicing the art
                  covered by the Licensed Patents or the Program IP.

<PAGE>

         1.3.     "Development Program" means the program of work for the
                  development of the Licensed Product, including milestones to
                  be achieved, cost estimates, relevant time schedules, etc.,
                  attached hereto as "Exhibit A" and as modified from time to
                  time by written agreement of the Parties.

         1.4.     "EMEA" means the European Agency for the Evaluation of Medical
                  Products.

         1.5.     "Fair Market Value" means, with respect to NLPT Securities,
                  the average closing bid price as quoted by the Exchange for
                  the 20-Business Day period that commences on the 10th Business
                  Day immediately preceding the date of the event that triggers
                  the milestone payment and ends on the 10th Business Day
                  immediately following such date. As used herein, a "Business
                  Day" is a day on which banks and the Exchange are open for the
                  transaction of business in New York City.

         1.6.     "Field of Use" means the delivery of opium alkaloid morphine
                  and/or a salt thereof via the nasal mucosa to humans or
                  animals for the treatment of pain.

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

         1.8.     "IND" means an Investigational New Drug Application.

         1.9.     "Launch" means commencement of commercial sale of the Licensed
                  Product following receipt of all necessary Regulatory Agency
                  approvals

         1.10.    "Launch Date" means the date of the first such commercial sale
                  following the Launch.

         1.11.    "Licensed Patents" means the letters patent and letters patent
                  that may issue from patent applications listed in Schedule 1
                  of the License Agreement which relate to nasal morphine,
                  including all continuations, continuations-in-part,
                  divisionals, reissues and reexaminations thereof

         1.12.    "Licensed Product" means opium alkaloid morphine and/or a salt
                  thereof combined with chitosan or a chitosan derivative or
                  salt for administration to humans and animals via the nasal
                  mucosa and which is covered by one or more claims of the
                  Licensed Patents.

         1.13.    "Major Market Country" means the United States, Japan, or any
                  European Union nation party to the EMEA Mutual Recognition
                  guidelines for pharmaceutical products.

                                      -2-
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         1.14.    "NLPT Securities" means equity securities of IDDS or an
                  Affiliate of IDDS that are listed on any of the New York Stock
                  Exchange, NASDAQ National Market System, NASDAQ Small-Cap
                  Market or American Stock Exchange (each, an "Exchange") and
                  that meet the continuing listing requirements of such Exchange
                  at the time the securities are issued.

         1.15.    "NDA" means a New Drug Application in the U.S., or the
                  analogous process as defined in applicable laws and
                  regulations by which application is made with the appropriate
                  Regulatory Agency of a given country for approval to market a
                  drug in that country.

         1.16.    "Party" means a party to this Agreement.

         1.17.    "Person" means an individual, partnership, limited liability
                  company, corporation, trust or unincorporated organization or
                  other business entity, and a government or agency or political
                  subdivision thereof

         1.18.    "Program IP" means know-how, knowledge, experience,
                  inventions, processes, technical information, trade secrets,
                  formulas, protocols, data and results (and any patents and
                  patent applications claiming any of the foregoing), arising
                  from or acquired specifically in the course of the development
                  activities covered by this Agreement that relate specifically
                  to the Licensed Product within the Field of Use.

         1.19.    "Regulatory Agency" means any governmental regulatory
                  authority responsible for granting health or pricing
                  approvals, registrations, import permits and other approvals
                  required before the Licensed Product may be tested or marketed
                  in any country. Regulatory Agency shall include the FDA, EMEA
                  and any analogous agency in any other country or region.

2.       Development Activities.

         2.1.     IDDS's Development and Commercialization Obligations. IDDS
                  shall, at its cost and expense, conduct the following
                  activities:

                  2.1.1.   Perform the work set forth in and in accordance with
                           the Development Program in cooperation with West;

                  2.1.2.   Diligently perform all activities necessary or
                           appropriate to obtain and maintain in full force and
                           effect Regulatory Agency approval in the U.S. and,
                           following U.S. approval, each Major Market Country
                           for the marketing of the Licensed Product in the
                           Field of Use; provided, that IDDS shall not We
                           required to pursue such Regulatory Agency approvals
                           in multiple Major Market Countries simultaneously and
                           IDDS may pursue such Regulatory Agency approvals in
                           such order as it decides consistent with a
                           commercially reasonable regulatory strategy;

                                      -3-
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                  2.1.3.   At the earliest possible time, consistent with sound
                           scientific and business principles, file applications
                           for, and use its best commercial efforts to pursue
                           Regulatory Agency approval to sell, the Licensed
                           Product in each Major Market Country and, either
                           directly or through sublicensees under the License
                           Agreement, in other countries where a reasonable
                           market opportunity exists;

                  2.1.4.   Use all reasonable commercial efforts to Launch the
                           Licensed Product within 90 days after receiving all
                           necessary approvals in each such country; and

                  2.1.5.   Maintain in full force and effect one or more
                           policies of insurance providing continuous coverage
                           of all of its development activities (including
                           without limitation insurance covering clinical
                           trials) hereunder in such amounts and against such
                           risks as is customary by companies engaged in the
                           same or similar business and similarly located, and
                           shall, upon West's request, furnish evidence
                           reasonably satisfactory to West of such insurance.
                           IDDS shall use its best efforts to ensure that such
                           policies shall, at a minimum, provide for:

                           (a) no less than $5,000,000 professional clinical
                               trial insurance coverage, including products and
                               complete operations coverage; and

                           (b) no less than 30 days advance notice to West
                               from the insurer or broker of any change or
                               cancellation of such coverage.

         2.2.     West's Obligations.

                  2.2.1.   West shall, at its cost and expense, reasonably
                           cooperate with IDDS and provide IDDS with such
                           information and documentation in West's possession,
                           including without limitation data, graphs, figures
                           and specifications, as may be reasonably required for
                           IDDS to perform its development and commercialization
                           obligations hereunder (including without limitation
                           the necessary U.S. and foreign regulatory filings);
                           provided that this Section shall not be construed to
                           require West to perform any studies, trials or other
                           development or commercialization work.

                  2.2.2.   West shall, at its cost and expense, perform the work
                           set forth as West's responsibilities in and in
                           accordance with the Development Program.

         2.3.     Survival of Obligations. Notwithstanding any other provision
                  of this Agreement, so long as the License Agreement remains in
                  effect, the obligations of IDDS under this Section 2 and the
                  obligations to West under Section 2.2.1 shall survive any
                  termination of this Agreement for any reason whatsoever,
                  including without limitation by reason of breach by West or
                  West/Nottingham.

                                      -4-
<PAGE>

         2.4.     IDDS IND Filing. IDDS shall have the right, in its sole
                  discretion, to cross-file in the name of IDDS, the IND held by
                  West for the Licensed Product.

3.       Payments.

         3.1.     Milestone Payments. In consideration of the obligations
                  undertaken by West and West/Nottingham and the rights granted
                  to IDDS under this Agreement and the License Agreement, IDDS
                  shall pay to West:

                  3.1.2    Within 30 days following the administration of the
                           first dose in the first pivotal Phase III trial for a
                           Licensed Product that is under development through a
                           West-sponsored or IDDS-sponsored IND (or other
                           equivalent regulatory filing such as a CTX), the
                           amount of $2,250,000;

                  3.1.3    Within 60 days following the first filing of an NDA
                           with a Regulatory Agency in a Major Market Country
                           for the Licensed Product, the amount of $***;
                           and

                  3.1.4    Within 60 days following the date of the receipt of
                           the first approvable letter from a Regulatory Agency
                           of an NDA in a Major Market Country for a Licensed
                           Product, the amount of $***.

         3.2      Extended Payment Date and Interest Thereon. Notwithstanding
                  the foregoing, IDDS may pay the amounts due under Sections
                  3.1.3 and 3.1.4 hereof up to an additional 30 days following
                  the applicable due date (i.e., up to 90 days after such due
                  date) without being in violation of this Agreement, provided
                  that any amounts remaining unpaid after 60 days from the due
                  date shall bear interest at the U.S. prime interest rate for
                  short-term funds plus two percentage points from such due date
                  until the date it is received. The interest will be calculated
                  on a daily average basis.

         3.3      Manner of Payment. Except as provided in Section 3.4 hereof,
                  all amounts payable under this Agreement shall be in United
                  States dollars by wire transfer of immediately available funds
                  to an account or accounts specified in writing by West at
                  least five d&ys pnor to the due date thereof.

         3.4      Payment By Issuance of NLPT Securities.

                  3.4.1    If the Parties mutually agree, some or all of the
                           amounts due under Sections 3.1.3 and/or 3.1.4 hereof
                           may be paid by issuance to West of a number of shares
                           of NLPT Securities equal to the applicable payment
                           amount divided by the Fair Market Value; provided
                           that at the time the NLPT Securities are issued, the
                           aggregate percentage of the total outstanding
                           securities of the issuing company (the "Issuer") held
                           by West shall not exceed 19.9%.

*** Represents material which has been omitted pursuant to an Application for
    Order Granting Confidential Treatment and filed separately with the
    Commission.

                                      -5-
<PAGE>

                  3.4.2    The Parties shall use their best efforts
                           approximately 60 days prior to the estimated date of
                           achievement of a milestone event to meet and discuss
                           the option of taking payment in NLPT Securities in
                           lieu of cash.

                  3.4.3    Any NLPT Securities issued pursuant to this Section
                           3.4 shall be subject to the Securities Issuance and
                           Registration Rights Agreement between West and IDDS
                           entered into as of September 22,2000.

         3.5      Survival of Obligation to Make Milestone Payments.
                  Notwithstanding any other provision of this Agreement, so long
                  as the License Agreement remains in effect, the obligations of
                  IDDS under this Section 3 shall survive any termination of
                  this Agreement for any reason whatsoever, including without
                  limitation by reason of breach by any member of the West
                  Group.

4.       Option to Manufacture. IDDS hereby grants to West an option to first
         negotiate with IDDS for the right to manufacture and/or package
         commercial quantities of the Licensed Product (the "Manufacturing
         Rights Option"), as follows:

         4.1.     No later than 18 months prior to the estimated Launch Date,
                  IDDS shall notify West of its anticipated need for commercial
                  quantities of Licensed Product. Such notice shall include
                  reasonable details of its requirements, including first-year
                  volume forecast, target pricing and other information
                  reasonably available to IDDS that shall have a bearing on
                  West's decision to exercise the Manufacturing Rights Option.

         4.2.     Within 15 days following receipt of IDDS's notice under
                  Section 4.1 hereof, West shall notify IDDS of its intent to
                  exercise or not exercise the Manufacturing Rights Option.

         4.3.     If West exercises its Manufacturing Rights Option, West and
                  IDDS shall promptly commence and diligently pursue for the
                  next 45 days good-faith negotiations towards agreement to, and
                  execution of, a definitive supply agreement with respect
                  thereto. The definitive agreement shall contain terms and
                  conditions that are usual and customary for supply agreements
                  of similar type for goods of similar kind and quantity in the
                  U.S.

         4.4.     If West fails to exercise its Manufacturing Rights Option
                  within the time period set forth in Section 4.2 hereof, or
                  West and IDDS fail to conclude agreement on the terms of such
                  agreement within the time period set forth in Section 4.3
                  hereof, then IDDS shall be free to negotiate with and conclude
                  agreements with third Persons for manufacturing and/or
                  packaging of the Licensed Product, provided that no such
                  agreement (i) shall contain price terms or other terms and
                  conditions that, in the aggregate, are less favorable to IDDS
                  than the West's last proposal or (ii) shall contain any
                  material terms and conditions that are more favorable to the
                  third Person than the terms and conditions set forth in
                  IDDS's notice to West under Section 4.1 hereof

                                      -6-
<PAGE>

5.       Intellectual Property Rights.

         5.1      Each Party shall own all intellectual property developed by
                  its independent research and development projects.

         5.2      West and West/Nottingham own and shall own all Background IP.

         5.3      IDDS shall own all Program IP developed by the IDDS-funded
                  portions of the Development Program, provided that West shall
                  have a non-exclusive, worldwide, fully paid-up, royalty-free,
                  perpetual license (with right to sublicense) to all such
                  Program IP relating in any way to manufacturing, scale-up and
                  production processes, techniques, inventions and know-how,
                  including without limitation clinical- and production-scale
                  manufacturing processes.

6.       Term and Termination.

         6.1      Term and Expiration. This Agreement shall become effective as
                  of the Effective Date and, unless terminated earlier pursuant
                  to this Section 6, shall remain in effect until the last to
                  occur Launch Date after the Licensed Product has been Launched
                  in all Major Market Countries.

         6.2      Termination. This Agreement may be terminated as follows:

                  6.2.1    By mutual consent of the Parties at any time.

                  6.2.2    By either West or IDDS upon written notice to the
                           other:

                           (a) in the event of a default by the other Party
                               in the due observance or performance of any
                               covenant, condition or limitation of this
                               Agreement or the License Agreement, but only
                               if the defaulting Party will not have
                               remedied its default within 30 days (or
                               within five Business Days in the event of
                               default under Section 3) after receipt of
                               written notice of such default from
                               th~non-defaulting party; or

                           (b) if the other Party is adjudicated a
                               bankrupt, if insolvency, bankruptcy,
                               reorganization, debt adjustment or
                               liquidation proceedings are instituted
                               against such Party and not dismissed within
                               60 days after the institution thereof, if a
                               receiver or trustee is appointed for such
                               party and its assets, or if such Party makes a
                               general assignment for the benefit of its
                               creditors.

                                      -7-
<PAGE>

         6.3      Survival. Notwithstanding the termination of this Agreement,
                  all rights and obligations that by their terms survive
                  termination shall remain unaffected until the complete
                  satisfaction or expiration thereof

7.       Representations and Disclaimer.

         7.1      Representations by West and West/Nottingham. Each of West and
                  West/Nottingham represents and warrants to IDDS:

                  7.1.1    It has the full legal right, power and authority to
                           enter in this Agreement.

                  7.1.2    It has not entered, and will not enter, into any
                           agreement that conflicts with the provisions of this
                           Agreement.

         7.2      Representations by IDDS. IDDS represents and warrants to West
                  and West/Nottingham:

                  7.2.1    It has the full legal right, power and authority to
                           enter in this Agreement.

                  7.2.2    It has not entered, and will not enter, into any
                           agreement that conflicts with the provisions of this
                           Agreement.

         7.3      Disclaimer of Warranties. EXCEPT AS OTHERWISE EXPRESSLY SET
                  FORTH IN THIS AGREEMENT, NEITHER WEST NOR WEST/NOTTINGHAM
                  MAKES ANY REPRESENTATION, GUARANTEE OR WARRANTY OF ANY KIND,
                  EITHER EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO
                  REPRESENTATIONS OR WARRANTIES TO THE SUCCESS OF ANY
                  DEVELOPMENT EFFORTS TO BE TAKEN HEREUNDER OR THE RESULTS TO BE
                  EXPECTED FROM IDDS'S USE OF ANY LICENSED PRODUCT OR FROM THE
                  MANUFACTURE, USE OR SALE OF THE LICENSED PRODUCT AND NO RIGHTS
                  IMPLIED OR OTHERWISE ARE GRANTED. NEITHER WEST,
                  WEST/NOTTINGHAM NOR ANY AFFILIATE OF ANY OF THEM SHALL HAVE
                  ANY RESPONSIBILITY TO IDDS OR OTHERS UNDER ANY LEGAL PRINCIPLE
                  FOR THE ABILITY OF IDDS OR THE QUALITY OR PERFORMANCE OF ANY
                  LICENSED PRODUCT DEVELOPED HEREUNDER; FOR CLAIMS OF THIRD
                  PERSONS RELATING TO ANY LICENSED PRODUCT MANUFACTURED OR SOLD
                  BY IDDS OR ANY OF ITS AFFILIATES OR SUBLICENSEES, OR FOR ANY
                  FAILURE IN LICENSED PRODUCTION, DESIGN OR OPERATION OF ANY
                  LICENSED PRODUCT MANUFACTURED OR SOLD BY ANY OF THEM. WEST AND
                  WEST/NOTTINGHAM DISCLAIM ANY WARRANTIES OF MERCHANTABILITY OR
                  FITNESS FOR A PARTICULAR USE. IN NO EVENT SHALL WEST,
                  WEST/NOTTINGHAM OR ANY AFFILIATE OF ANY OF THEM BE LIABLE TO
                  IDDS OR ANY AFFILIATE OR SUBLICENSEE FOR INDIRECT, SPECIAL,
                  INCIDENTAL OR CONSEQUENTIAL DAMAGES UNDER THIS AGREEMENT OR
                  OTHERWISE, REGARDLESS OF WHETHER WEST, WEST/NOTTINGHAM OR ANY
                  AFFILIATE OF ANY OF THEM KNEW OR HAD REASON TO KNOW OF THE
                  POSSIBILITY OF SUCH DAMAGES.

                                      -8-
<PAGE>

8.       Miscellaneous Provisions.

         8.1      Force Majeure. No Party hereto shall be held liable or
                  responsible to any other Party nor be deemed to have defaulted
                  under or breached this Agreement for failure or delay in
                  fulfilling or performing any term of the Agreement when such
                  failure or delay is caused by or results from causes beyond
                  the reasonable control of the Party failing to perform or
                  delayed in performing including, but not limited to, fire,
                  floods, embargoes, war, acts of war (whether war be declared
                  or not), insurrections, riots, civil commotions, strikes,
                  lockouts or other labor disturbances, acts of God or acts,
                  omissions or delays in acting by any governmental authority or
                  the other Party.

         8.2      Assignment. This Agreement may not be assigned or otherwise
                  transferred by any Party without the consent of the other
                  parties; provided, however, that either Party may, without
                  such consent, assign this Agreement and its rights and
                  obligations hereunder to its Affiliates or in connection with
                  the transfer or sale of all or substantially all of its
                  business, or in the event of its merger or consolidation or
                  change in control or similar transaction. Any purported
                  assignment in violation of the preceding sentence shall be
                  void. Any permitted assignee shall assume all obligations of
                  its assignor under this Agreement.

         8.3      Severability. In the event any one or more of the provisions
                  contained in this Agreement should be held invalid, illegal or
                  unenforceable in any respect, the validity, legality and
                  enforceability of the remaining provisions contained herein
                  shall not in any way be affected or impaired thereby, unless
                  the absence of the invalidated provision(s) adversely affect
                  the substantive rights of the parties. The parties shall in
                  such an instance use reasonable efforts to replace the
                  invalid, illegal or unenforceable provision(s) with valid,
                  legal and enforceable provision(s) which, insofar as
                  practical, implement the purposes of this Agreement.

         8.4      Notices Any notice or other communication pursuant to this
                  Agreement will be deemed duly made or given: (i) when
                  delivered by hand; (ii) 10 business days after it is mailed,
                  certified or return receipt request, with postage prepaid;
                  (iii) when sent, if sent by telecopy (with receipt confirmed)
                  or (iv) when receipt is signed for when sent by Federal
                  Express, DHL or other express delivery service. Notices will
                  be addressed as follows:

                                      -9-
<PAGE>

          If to West or West/Nottingham to:

                  West Pharmaceutical Services, Inc.
                  101 Gordon Drive
                  Lionville, Pennsylvania 19341
                  Attention:  Division President, Drug Delivery Systems
                  Telecopier: 610 594-3013

                  With a required copy to:

                  West Pharmaceutical Services, Inc.
                  101 Gordon Drive
                  Lionville, Pennsylvania 19341
                  Attention:  General Counsel
                  Telecopier: 610 594-3013

         If to IDDS to:

                  Innovative Drug Delivery Systems, Inc.
                  787 Seventh Avenue
                  New York, NY 10019
                  Attention:  David M. Tanen
                  Telecopier: 212 554-4355

8.5.     Governing Law/Jurisdiction. This Agreement is acknowledged to have been
         made in and shall be construed, governed, interpreted and applied in
         accordance with the federal patent laws and the laws of the
         Commonwealth of Pennsylvania, without giving effect to its conflict of
         laws provisions. The state and federal courts in Pennsylvania shall
         have exclusive jurisdiction over any litigation arising under this
         Agreement.

8.6.     Arbitration Clause. Any controversy or claim arising out of or relating
         to this Agreement or the breach thereof, which remains unsettled
         following diligent efforts by each Party to reach a mutually acceptable
         resolution of such claim or controversy, shall be settled by
         arbitration administered by the American Arbitration Association and
         judgment on the award rendered by the arbitrator(s) may be entered in
         any court having jurisdiction thereof This Section shall not prevent
         any Party from seeking equitable relief

8.7.     Entire Agreement. This Agreement, the License Agreement, and the
         Confidentiality Agreement among the Parties entered into as of August
         25, 2000 constitute the entire Agreement between the parties with
         respect to the subject matter hereof, and supersede all proposals, oral
         or written, purchase orders, confidentiality agreements and all other
         communications between the parties with respect to such subject matter.

                                      -10-
<PAGE>

8.8.     Modifications The terms and conditions of this Agreement may be amended
         only by a written instrument duly executed by the Parties.

8.9.     Headings. The headings and captions preceding the Sections hereof are
         inserted solely for convenience of reference, and will not constitute
         part of this Agreement, nor will they affect its meaning, construction
         or effect.

8.10.    Independent Contractors. It is expressly agreed that West and
         West/Nottingham, on one hand, and IDDS, on the other hand, are
         independent contractors with respect to this Agreement and that the
         relationship between them created by this Agreement shall not
         constitute a partnership, joint venture or agency. No Party hereto
         shall have the authority to make any statements, representations or
         commitments of any kind, or to take any action, which shall be binding
         on any other Party, without the prior consent of the Party to do so.

8.11.    Waiver. The waiver by any Party of any right hereunder or the failure
         to perform or of a breach by any other Party shall not be deemed a
         waiver of any other right hereunder or of any other breach or failure
         by said other Party whether of a similar nature or otherwise.

8.12.    Counterparts. The Agreement may be executed in one or more
         counterparts, each of which shall be deemed an original, but all of
         which together shall constitute one and the same instrument.

IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be the
subject matter hereof, and supersede all proposals, oral or written, purchase
orders, confidentiality agreements and all other communications between the
parties with respect to such subject matter.

                                      -11-
<PAGE>

8.8.     Modifications The terms and conditions of this Agreement may be amended
         only by a written instrument duly executed by the Parties.

8.9.     Headings. The headings and captions preceding the Sections hereof are
         inserted solely for convenience of reference, and will not constitute
         part of this Agreement, nor will they affect its meaning, construction
         or effect.

8.10.    Independent Contractors. It is expressly agreed that West and
         West/Nottingham, on one hand, and IDDS, on the other hand, are
         independent contractors with respect to this Agreement and that the
         relationship between them created by this Agreement shall not
         constitute a partnership, joint venture or agency. No Party hereto
         shall have the authority to make any statements, representations or
         commitments of any kind, or to take any action, which shall be binding
         on any other Party, without the prior consent of the Party to do so.

8.11.    Waiver. The waiver by any Party of any right hereunder or the failure
         to perform or of a breach by any other Party shall not be deemed a
         waiver of any other right hereunder or of any other breach or failure
         by said other Party whether of a similar nature or otherwise.

8.12.    Counterparts. The Agreement may be executed in one or more
         counterparts, each of which shall be deemed an original, but all of
         which together shall constitute one and the same instrument.

         IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be
duly executed by their respective duly authorized officers.

INNOVATIVE DRUG DELIVERY SYSTEMS, INC.

By:      /s/ Mark C. Rogers
    ----------------------------------
         Mark C. Rogers, M.D., Chairman

WEST PHARMACEUTICAL SERVICES, INC.

                                      -11-
<PAGE>

WEST PHARMACEUTICAL SERVICES, INC.

By:      /s/ Donald B. Morel Jr.
    ----------------------------------
         Donald B. Morel Jr.,
         Division President,
         Drug Delivery Systems

WEST PHARMACEUTICAL SERVICES DRUG DELIVERY
& CLINICAL RESEARCH CENTRE LTD.

By:      /s/ Donald B. Morel Jr.
    ----------------------------------
         Donald E. Morel Jr, Chairman

                                      -12-

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