Document:

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                       INTEGRATED CIRCUIT SYSTEMS, INC..

                       2000 EMPLOYEE STOCK PURCHASE PLAN

     The following constitute the provisions of the 2000 Employee Stock Purchase
Plan of Integrated Circuit Systems, Inc.

1.   PURPOSE.

     The purpose of the Plan is to provide employees of the Company and its
Designated Subsidiaries with an opportunity to purchase Common Stock of the
Company. It is the intention of the Company to have the Plan qualify as an
"Employee Stock Purchase Plan" under Section 423 of the Code. The provisions of
the Plan shall, accordingly, be construed so as to extend and limit
participation in a manner consistent with the requirements of that section of
the Code.

2.   DEFINITIONS.

     (a) "Board" means the Board of Directors of the Company.

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

     (c) "Common Stock" means the Company's common stock, par value $0.01 per
share.

     (d) "Company" means Integrated Circuit Systems, Inc., a Pennsylvania
corporation.

     (e) "Compensation" means all regular straight time gross earnings, and
shall not include commissions, payments for overtime, shift premium, incentive
compensation, incentive payments, bonuses and other compensation.

     (f) "Continuous Status as an Employee" means the absence of any
interruption or termination of service as an Employee. Continuous Status as an
Employee shall not be considered interrupted in the case of (i) sick leave; (ii)
military leave; (iii) any other leave of absence approved by the Administrator,
provided that such leave is for a period of not more than 90 days, unless re-
employment upon the expiration of such leave is guaranteed by contract or
statute, or unless provided otherwise pursuant to Company policy adopted from
time to time; or (iv) in the case of transfers between locations of the Company
or between the Company and its Designated Subsidiaries.

     (g) "Contributions" means all amounts credited to the account of a
participant pursuant to the Plan.

     (h) "Corporate Transaction" means a sale of all or substantially all of the
Company's assets, or a merger, consolidation or other capital reorganization of
the Company with or into another corporation.
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     (i) "Designated Subsidiaries" means the Subsidiaries which have been
designated by the Board from time to time in its sole discretion as eligible to
participate in the Plan; provided however that the Board shall only have the
discretion to designate Subsidiaries if the issuance of options to such
Subsidiary's Employees pursuant to the Plan would not cause the Company to incur
adverse accounting charges.

     (j) "Employee" means any person, including an Officer, who is customarily
employed for at least twenty (20) hours per week and more than five (5) months
in a calendar year by the Company or one of its Designated Subsidiaries.

     (k) "Exchange Act" means the Securities Exchange Act of 1934, as amended.

     (l) "Offering Date" means the first business day of each Offering Period of
the Plan.

     (m) "Offering Period" means a period of twenty-four (24) months commencing
on April 1, July 1, October 1 and January 1 of each year, except for the first
Offering Period as set forth in Section 4(a).

     (n) "Officer" means a person who is an officer of the Company within the
meaning of Section 16 of the Exchange Act and the rules and regulations
promulgated thereunder.

     (o) "Plan" means this Employee Stock Purchase Plan.

     (p) "Purchase Date" means the last day of each Purchase Period of the Plan.

     (q) "Purchase Period" means a period of three (3) months within an Offering
Period, except for the first Purchase Period as set forth in Section 4(b).

     (r) "Purchase Price" means with respect to a Purchase Period an amount
equal to 85% of the Fair Market Value (as defined in Section 7(b) below) of a
Share of Common Stock on the Offering Date or on the Purchase Date, whichever is
lower; provided, however, that in the event (i) of any increase in the number of
Shares available for issuance under the Plan as a result of a stockholder-
approved amendment to the Plan, and (ii) all or a portion of such additional
Shares are to be issued with respect to one or more Offering Periods that are
underway at the time of such increase ("Additional Shares"), and (iii) the Fair
Market Value of a Share of Common Stock on the date of such increase (the
"Approval Date Fair Market Value") is higher than the Fair Market Value on the
Offering Date for any such Offering Period, then in such instance the Purchase
Price with respect to Additional Shares shall be 85% of the Approval Date Fair
Market Value or the Fair Market Value of a Share of Common Stock on the Purchase
Date, whichever is lower.

     (s) "Share" means a share of Common Stock, as adjusted in accordance with
Section 19 of the Plan.

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     (t) "Subsidiary" means a corporation, domestic or foreign, of which not
less than 50% of the voting shares are held by the Company or a Subsidiary,
whether or not such corporation now exists or is hereafter organized or acquired
by the Company or a Subsidiary.

3.   ELIGIBILITY.

     (a) Any person who is an Employee as of the Offering Date of a given
Offering Period shall be eligible to participate in such Offering Period under
the Plan, subject to the requirements of Section 5(a) and the limitations
imposed by Section 423(b) of the Code; provided however that eligible Employees
may not participate in more than one Offering Period at a time.

     (b) Any provisions of the Plan to the contrary notwithstanding, no Employee
shall be granted an option under the Plan (i) if, immediately after the grant,
such Employee (or any other person whose stock would be attributed to such
Employee pursuant to Section 424(d) of the Code) would own capital stock of the
Company and/or hold outstanding options to purchase stock possessing five
percent (5%) or more of the total combined voting power or value of all classes
of stock of the Company or of any subsidiary of the Company, or (ii) if such
option would permit his or her rights to purchase stock under all employee stock
purchase plans (described in Section 423 of the Code) of the Company and its
Subsidiaries to accrue at a rate which exceeds Twenty-Five Thousand Dollars
($25,000) of the Fair Market Value (as defined in Section 7(b) below) of such
stock (determined at the time such option is granted) for each calendar year in
which such option is outstanding at any time.

4.   OFFERING PERIODS AND PURCHASE PERIODS.

     (a) OFFERING PERIODS. The Plan shall be implemented by a series of Offering
Periods of twenty-four (24) months duration, with new Offering Periods
commencing on or about April 1, July 1, October 1 and January 1 of each year (or
at such other time or times as may be determined by the Board of Directors). The
first Offering Period shall commence on the beginning of the effective date of
the Registration Statement on Form S-1 for the initial public offering of the
Company's Common Stock (the "IPO Date") and continue until June 30, 2002. The
Plan shall continue until terminated in accordance with Section 20 hereof. The
Board of Directors of the Company shall have the power to change the duration
and/or the frequency of Offering Periods with respect to future offerings
without stockholder approval if such change is announced at least five (5) days
prior to the scheduled beginning of the first Offering Period to be affected.

     (b) PURCHASE PERIODS. Each Offering Period shall consist of eight (8)
consecutive Purchase Periods of three (3) months' duration. The last day of each
Purchase Period shall be the "Purchase Date" for such Purchase Period. A
Purchase Period commencing on April 1 shall end on the next June 30. A Purchase
Period commencing on July 1 shall end on the next September 30. A Purchase
Period commencing on October 1 shall end on the next December 31. A Purchase
Period commencing on January 1 shall end on the next March 31. The first
Purchase Period shall commence on the IPO Date and shall end on June 30, 2000.
The Board of Directors of the Company shall have the power to change the
duration and/or frequency of Purchase Periods with respect to future

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purchases without stockholder approval if such change is announced at least five
(5) days prior to the scheduled beginning of the first Purchase Period to be
affected.

5.   PARTICIPATION.

     (a) An eligible Employee may become a participant in the Plan by completing
a subscription agreement on the form provided by the Company and filing it with
the Company's payroll office prior to the applicable Offering Date, unless a
later time for filing the subscription agreement is set by the Board for all
eligible Employees with respect to a given Offering Period. The subscription
agreement shall set forth the percentage of the participant's Compensation
(subject to Section 6(a) below) to be paid as Contributions pursuant to the
Plan. Eligible Employees will pay for the Shares to be acquired on his or her
behalf during the Purchase Period through periodic payroll deductions.

     (b) Payroll deductions shall commence on the first payroll following the
Offering Date and shall end on the last payroll paid on or prior to the last
Purchase Period of the Offering Period to which the subscription agreement is
applicable, unless sooner terminated by the participant as provided in Section
10.

6.   METHOD OF PAYMENT OF CONTRIBUTIONS.

     (a) A participant shall elect to have payroll deductions made on each
payday during the Offering Period in an amount not less than one percent (1%)
and not more than ten percent (10%) (or such greater percentage as the Board may
establish from time to time before an Offering Date) of such participant's
Compensation on each payday during the Offering Period. All payroll deductions
made by a participant shall be credited to his or her account under the Plan. A
participant may not make any additional payments into such account.

     (b) A participant may discontinue his or her participation in the Plan as
provided in Section 10, or, on one occasion only during a Purchase Period may
increase and on one occasion only during a Purchase Period may decrease the rate
of his or her Contributions with respect to the Offering Period by completing
and filing with the Company a new subscription agreement authorizing a change in
the payroll deduction rate. The change shall be effective as of the beginning of
the next payroll period following the date of filing of the new subscription
agreement, if the agreement is filed at least ten (10) business days prior to
such date and, if not, as of the beginning of the next succeeding payroll
period.

     (c) Notwithstanding the foregoing, to the extent necessary to comply with
Section 423(b)(8) of the Code and Section 3(b) hereof, a participant's payroll
deductions may be decreased by the Company to 0% at any time during a Purchase
Period. Payroll deductions shall re-commence at the rate provided in such
participant's subscription agreement at the beginning of the first Purchase
Period which is scheduled to end in the following calendar year, unless
terminated by the participant as provided in Section 10. In addition, a
participant's payroll deductions may be decreased by the Company to 0% at any
time during a Purchase Period in order to avoid unnecessary payroll
contributions as a result of application of the maximum share limit set forth in
Section 7(a),

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in which case payroll deductions shall re-commence at the rate provided in such
participant's subscription agreement at the beginning of the next Purchase
Period, unless terminated by the participant as provided in Section 10.

7.   GRANT OF OPTION.

     (a) On the Offering Date of each Offering Period, each eligible Employee
participating in such Offering Period shall be granted an option to purchase on
each Purchase Date a number of Shares of the Company's Common Stock determined
by dividing such Employee's Contributions accumulated prior to such Purchase
Date and retained in the participant's account as of the Purchase Date by the
applicable Purchase Price; provided however that the maximum number of Shares an
Employee may purchase during any Purchase Period shall be 400 Shares (subject to
any adjustment pursuant to Section 19 below), and provided further that such
purchase shall be subject to the limitations set forth in Sections 3(b) and 13.

     (b) The fair market value of the Company's Common Stock on a given date
(the "Fair Market Value") shall be determined by the Board in its discretion
based on the closing sales price of the Common Stock for such date (or, in the
event that the Common Stock is not traded on such date, on the immediately
preceding trading date), as reported by the National Association of Securities
Dealers Automated Quotation (Nasdaq) National Market or, if such price is not
reported, the mean of the bid and asked prices per share of the Common Stock as
reported by Nasdaq or, in the event the Common Stock is listed on a stock
exchange, the Fair Market Value per share shall be the closing sales price on
such exchange on such date (or, in the event that the Common Stock is not traded
on such date, on the immediately preceding trading date), as reported in The
Wall Street Journal. For purposes of the Offering Date under the first Offering
Period under the Plan, the Fair Market Value of a share of the Common Stock of
the Company shall be the Price to Public as set forth in the final prospectus
filed with the Securities and Exchange Commission pursuant to Rule 424 under the
Securities Act of 1933, as amended.

8.   EXERCISE OF OPTION.

     Unless a participant withdraws from the Plan as provided in Section 10, his
or her option for the purchase of Shares will be exercised automatically on each
Purchase Date of an Offering Period, and the maximum number of full Shares
subject to the option will be purchased at the applicable Purchase Price with
the accumulated Contributions in his or her account. No fractional Shares shall
be issued. The Shares purchased upon exercise of an option hereunder shall be
deemed to be transferred to the participant on the Purchase Date. During his or
her lifetime, a participant's option to purchase Shares hereunder is exercisable
only by him or her.

9.   DELIVERY.

     As promptly as practicable after each Purchase Date of each Offering
Period, the Company shall arrange the delivery to each participant, as
appropriate, the Shares purchased upon exercise of his or her option.  No
fractional Shares shall be purchased; any payroll deductions accumulated in a
participant's account which are not sufficient to purchase a full Share shall be
retained in the

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participant's account for the subsequent Purchase Period or Offering Period,
subject to earlier withdrawal by the participant as provided in Section 10
below. Any other amounts left over in a participant's account after a Purchase
Date shall be returned to the participant.

10.  VOLUNTARY WITHDRAWAL; TERMINATION OF EMPLOYMENT.

     (a) A participant may withdraw all but not less than all the Contributions
credited to his or her account under the Plan at any time prior to each Purchase
Date by giving written notice to the Company. All of the participant's
Contributions credited to his or her account will be paid to him or her promptly
after receipt of his or her notice of withdrawal and his or her option for the
current period will be automatically terminated, and no further Contributions
for the purchase of Shares will be made during the Offering Period.

     (b) Upon termination of the participant's Continuous Status as an Employee
prior to the Purchase Date of an Offering Period for any reason, including
retirement or death, the Contributions credited to his or her account will be
returned to him or her or, in the case of his or her death, to the person or
persons entitled thereto under Section 14, and his or her option will be
automatically terminated.

     (c) In the event an Employee fails to remain in Continuous Status as an
Employee of the Company for at least twenty (20) hours per week during the
Offering Period in which the employee is a participant, he or she will be deemed
to have elected to withdraw from the Plan and the Contributions credited to his
or her account will be returned to him or her and his or her option terminated.

     (d) A participant's withdrawal from an offering will not have any effect
upon his or her eligibility to participate in a succeeding offering or in any
similar plan which may hereafter be adopted by the Company.

11.  AUTOMATIC WITHDRAWAL.

     If the Fair Market Value of the Shares on any Purchase Date of an Offering
Period is less than the Fair Market Value of the Shares on the Offering Date for
such Offering Period, then every participant shall automatically (i) be
withdrawn from such Offering Period at the close of such Purchase Date and after
the acquisition of Shares for such Purchase Period, and (ii) be enrolled in the
Offering Period commencing on the first business day subsequent to such Purchase
Period.

12.  INTEREST.

     No interest shall accrue on the Contributions of a participant in the Plan.

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13.  STOCK.

     (a) Subject to adjustment as provided in Section 19, the maximum number of
Shares which shall be made available for sale under the Plan shall be 500,000
Shares or such lesser number of Shares as is determined by the Board. If the
Board determines that, on a given Purchase Date, the number of shares with
respect to which options are to be exercised may exceed (i) the number of shares
of Common Stock that were available for sale under the Plan on the Offering Date
of the applicable Offering Period, or (ii) the number of shares available for
sale under the Plan on such Purchase Date, the Board may in its sole discretion
provide (x) that the Company shall make a pro rata allocation of the Shares of
Common Stock available for purchase on such Offering Date or Purchase Date, as
applicable, in as uniform a manner as shall be practicable and as it shall
determine in its sole discretion to be equitable among all participants
exercising options to purchase Common Stock on such Purchase Date, and continue
all Offering Periods then in effect, or (y) that the Company shall make a pro
rata allocation of the shares available for purchase on such Offering Date or
Purchase Date, as applicable, in as uniform a manner as shall be practicable and
as it shall determine in its sole discretion to be equitable among all
participants exercising options to purchase Common Stock on such Purchase Date,
and terminate any or all Offering Periods then in effect pursuant to Section 20
below. The Company may make pro rata allocation of the Shares available on the
Offering Date of any applicable Offering Period pursuant to the preceding
sentence, notwithstanding any authorization of additional Shares for issuance
under the Plan by the Company's stockholders subsequent to such Offering Date.

     (b) The participant shall have no interest or voting right in Shares
covered by his or her option until such option has been exercised.

     (c) Shares to be delivered to a participant under the Plan will be
registered in the name of the participant or in the name of the participant and
his or her spouse.

14.  ADMINISTRATION.

     The Board, or a committee named by the Board, shall supervise and
administer the Plan and shall have full power to adopt, amend and rescind any
rules deemed desirable and appropriate for the administration of the Plan and
not inconsistent with the Plan, to construe and interpret the Plan, and to make
all other determinations necessary or advisable for the administration of the
Plan.

15.  DESIGNATION OF BENEFICIARY.

     (a) A participant may file a written designation of a beneficiary who is to
receive any Shares and cash, if any, from the participant's account under the
Plan in the event of such participant's death subsequent to the end of a
Purchase Period but prior to delivery to him or her of such Shares and cash. In
addition, a participant may file a written designation of a beneficiary who is
to receive any cash from the participant's account under the Plan in the event
of such participant's death prior to the Purchase Date of an Offering Period. If
a participant is married and the designated beneficiary is not the spouse,
spousal consent shall be required for such designation to be effective.

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     (b) Such designation of beneficiary may be changed by the participant (and
his or her spouse, if any) at any time by written notice. In the event of the
death of a participant and in the absence of a beneficiary validly designated
under the Plan who is living at the time of such participant's death, the
Company shall deliver such Shares and/or cash to the executor or administrator
of the estate of the participant, or if no such executor or administrator has
been appointed (to the knowledge of the Company), the Company, in its
discretion, may deliver such Shares and/or cash to the spouse or to any one or
more dependents or relatives of the participant, or if no spouse, dependent or
relative is known to the Company, then to such other person as the Company may
designate.

16.  TRANSFERABILITY.

     Neither Contributions credited to a participant's account nor any rights
with regard to the exercise of an option or to receive Shares under the Plan may
be assigned, transferred, pledged or otherwise disposed of in any way (other
than by will, the laws of descent and distribution, or as provided in Section
15) by the participant. Any such attempt at assignment, transfer, pledge or
other disposition shall be without effect, except that the Company may treat
such act as an election to withdraw funds in accordance with Section 10.

17.  USE OF FUNDS.

     All Contributions received or held by the Company under the Plan may be
used by the Company for any corporate purpose, and the Company shall not be
obligated to segregate such Contributions.

18.  REPORTS.

     Individual accounts will be maintained for each participant in the Plan.
Statements of account will be given to participating Employees at least
annually, which statements will set forth the amounts of Contributions, the per
Share Purchase Price, the number of Shares purchased and the remaining cash
balance, if any.

19.  ADJUSTMENTS UPON CHANGES IN CAPITALIZATION; CORPORATE TRANSACTIONS.

     (a) ADJUSTMENT. Subject to any required action by the stockholders of the
Company, the number of Shares covered by each option under the Plan which has
not yet been exercised and the number of Shares which have been authorized for
issuance under the Plan but have not yet been placed under option (collectively,
the "Reserves"), as well as the maximum number of shares of Common Stock which
may be purchased by a participant in a Purchase Period, the number of shares of
Common Stock set forth in Section 13(a) above, and the price per Share of Common
Stock covered by each option under the Plan which has not yet been exercised,
shall be proportionately adjusted for any increase or decrease in the number of
issued Shares resulting from a stock split, reverse stock split, stock dividend,
combination or reclassification of the Common Stock (including any such change
in the number of Shares of Common Stock effected in connection with a change

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in domicile of the Company), or any other increase or decrease in the number of
Shares effected without receipt of consideration by the Company; provided
however that conversion of any convertible securities of the Company shall not
be deemed to have been "effected without receipt of consideration." Such
adjustment shall be made by the Board, whose determination in that respect shall
be final, binding and conclusive. Except as expressly provided herein, no issue
by the Company of shares of stock of any class, or securities convertible into
shares of stock of any class, shall affect, and no adjustment by reason thereof
shall be made with respect to, the number or price of Shares subject to an
option.

     (b) CORPORATE TRANSACTIONS. In the event of a dissolution or liquidation of
the Company, any Purchase Period and Offering Period then in progress will
terminate immediately prior to the consummation of such action, unless otherwise
provided by the Board. In the event of a Corporate Transaction, each option
outstanding under the Plan shall be assumed or an equivalent option shall be
substituted by the successor corporation or a parent or Subsidiary of such
successor corporation. In the event that the successor corporation refuses to
assume or substitute for outstanding options, each Purchase Period and Offering
Period then in progress shall be shortened and a new Purchase Date shall be set
(the "New Purchase Date"), as of which date any Purchase Period and Offering
Period then in progress will terminate. The New Purchase Date shall be on or
before the date of consummation of the transaction and the Board shall notify
each participant in writing, at least ten (10) days prior to the New Purchase
Date, that the Purchase Date for his or her option has been changed to the New
Purchase Date and that his or her option will be exercised automatically on the
New Purchase Date, unless prior to such date he or she has withdrawn from the
Offering Period as provided in Section 10. For purposes of this Section 19, an
option granted under the Plan shall be deemed to be assumed, without limitation,
if, at the time of issuance of the stock or other consideration upon a Corporate
Transaction, each holder of an option under the Plan would be entitled to
receive upon exercise of the option the same number and kind of shares of stock
or the same amount of property, cash or securities as such holder would have
been entitled to receive upon the occurrence of the transaction if the holder
had been, immediately prior to the transaction, the holder of the number of
Shares of Common Stock covered by the option at such time (after giving effect
to any adjustments in the number of Shares covered by the option as provided for
in this Section 19); provided however that if the consideration received in the
transaction is not solely common stock of the successor corporation or its
parent (as defined in Section 424(e) of the Code), the Board may, with the
consent of the successor corporation, provide for the consideration to be
received upon exercise of the option to be solely common stock of the successor
corporation or its parent equal in Fair Market Value to the per Share
consideration received by holders of Common Stock in the transaction.

     The Board may, if it so determines in the exercise of its sole discretion,
also make provision for adjusting the Reserves, as well as the price per Share
of Common Stock covered by each outstanding option, in the event that the
Company effects one or more reorganizations, recapitalizations, rights offerings
or other increases or reductions of Shares of its outstanding Common Stock, and
in the event of the Company's being consolidated with or merged into any other
corporation.

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20.  AMENDMENT OR TERMINATION.

     (a) The Board may at any time and for any reason terminate or amend the
Plan. Except as provided in Section 19, no such termination of the Plan may
affect options previously granted, provided that the Plan or an Offering Period
may be terminated by the Board on a Purchase Date or by the Board's setting a
new Purchase Date with respect to an Offering Period and Purchase Period then in
progress if the Board determines that termination of the Plan and/or the
Offering Period is in the best interests of the Company and the stockholders or
if continuation of the Plan and/or the Offering Period would cause the Company
to incur adverse accounting charges as a result of a change after the effective
date of the Plan in the generally accepted accounting rules applicable to the
Plan. Except as provided in Section 19 and in this Section 20, no amendment to
the Plan shall make any change in any option previously granted which adversely
affects the rights of any participant. In addition, to the extent necessary to
comply with Rule 16b-3 under the Exchange Act, or under Section 423 of the Code
(or any successor rule or provision or any applicable law or regulation), the
Company shall obtain stockholder approval in such a manner and to such a degree
as so required.

     (b) Without stockholder consent and without regard to whether any
participant rights may be considered to have been adversely affected, the Board
(or its committee) shall be entitled to change the Offering Periods and Purchase
Periods, limit the frequency and/or number of changes in the amount withheld
during an Offering Period, establish the exchange ratio applicable to amounts
withheld in a currency other than U.S. dollars, permit payroll withholding in
excess of the amount designated by a participant in order to adjust for delays
or mistakes in the Company's processing of properly completed withholding
elections, establish reasonable waiting and adjustment periods and/or accounting
and crediting procedures to ensure that amounts applied toward the purchase of
Common Stock for each participant properly correspond with amounts withheld from
the participant's Compensation, and establish such other limitations or
procedures as the Board (or its committee) determines in its sole discretion
advisable which are consistent with the Plan.

21.  NOTICES.

     All notices or other communications by a participant to the Company under
or in connection with the Plan shall be deemed to have been duly given when
received in the form specified by the Company at the location, or by the person,
designated by the Company for the receipt thereof.

22.  CONDITIONS UPON ISSUANCE OF SHARES.

     Shares shall not be issued with respect to an option unless the exercise of
such option and the issuance and delivery of such Shares pursuant thereto shall
comply with all applicable provisions of law, domestic or foreign, including,
without limitation, the Securities Act of 1933, as amended, the Exchange Act,
the rules and regulations promulgated thereunder, applicable state securities
laws and the requirements of any stock exchange upon which the Shares may then
be listed, and shall be further subject to the approval of counsel for the
Company with respect to such compliance.

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     As a condition to the exercise of an option, the Company may require the
person exercising such option to represent and warrant at the time of any such
exercise that the Shares are being purchased only for investment and without any
present intention to sell or distribute such Shares if, in the opinion of
counsel for the Company, such a representation is required by any of the
aforementioned applicable provisions of law.

23.  TERM OF PLAN; EFFECTIVE DATE.

     The Plan shall become effective upon the IPO Date. It shall continue in
effect for a term of ten (10) years unless sooner terminated under Section 20.

24.  ADDITIONAL RESTRICTIONS OF RULE 16b-3.

     The terms and conditions of options granted hereunder to, and the purchase
of Shares by, persons subject to Section 16 of the Exchange Act shall comply
with the applicable provisions of Rule 16b-3. This Plan shall be deemed to
contain, and such options shall contain, and the Shares issued upon exercise
thereof shall be subject to, such additional conditions and restrictions as may
be required by Rule 16b-3 to qualify for the maximum exemption from Section 16
of the Exchange Act with respect to Plan transactions.

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                       INTEGRATED CIRCUIT SYSTEMS, INC.

                       2000 EMPLOYEE STOCK PURCHASE PLAN
                        FORM OF SUBSCRIPTION AGREEMENT

                                                             New Election ______
                                                       Change of Election ______

1.   I, ________________________, hereby elect to participate in the Integrated
     Circuit Systems, Inc. 2000 Employee Stock Purchase Plan (the "Plan") for
     the Offering Period ______________, ____ to _______________, ____, and
     subscribe to purchase shares of the Company's Common Stock in accordance
     with this Subscription Agreement and the Plan.

2.   I elect to have Contributions in the amount of ____% of my Compensation, as
     those terms are defined in the Plan, applied to this purchase. I understand
     that this amount must not be less than 1% and not more than 15% of my
     Compensation during the Offering Period. (Please note that no fractional
     percentages are permitted).

3.   I understand that these Contributions will be made through Payroll
     Deduction.

4.   In the event the payroll deduction option was selected, I hereby authorize
     payroll deductions from each paycheck during the Offering Period at the
     rate stated in Item 2 of this Subscription Agreement. I understand that all
     payroll deductions made by me shall be credited to my account under the
     Plan and that I may not make any additional payments into such account.

5.   I understand that all payments made by me shall be accumulated for the
     purchase of shares of Common Stock at the applicable purchase price
     determined in accordance with the Plan. I further understand that, except
     as otherwise set forth in the Plan, shares will be purchased for me
     automatically on the Purchase Date of each Offering Period unless I
     otherwise withdraw from the Plan by giving written notice to the Company
     for such purpose.

6.   I understand that I may discontinue at any time prior to the Purchase Date
     my participation in the Plan as provided in Section 10 of the Plan. I also
     understand that I can increase or decrease the rate of my Contributions on
     one occasion only with respect to any increase and one occasion only with
     respect to any decrease during any Purchase Period by completing and filing
     a new Subscription Agreement with such increase or decrease taking effect
     as of the beginning of the calendar month following the date of filing of
     the new Subscription Agreement, if filed at least ten (10) business days
     prior to the beginning of such month. Further, I may change the rate of my
     Contributions for future Offering Periods by filing a new Subscription
     Agreement, and any such change will be effective as of the beginning of the
     next Offering Period. In addition, I acknowledge that, unless I discontinue
     my participation in the Plan as provided in Section 10 of the Plan, my
     election will continue to be effective for each successive Offering Period.
<PAGE>

7.   I have received a copy of the complete Integrated Circuit Systems, Inc.
     2000 Employee Stock Purchase Plan.  I understand that my participation in
     the Plan is in all respects subject to the terms of the Plan.

8.   Shares purchased for me under the Plan should be issued in the name(s) of
     (name of employee or employee and spouse only):

9.   In the event of my death, I hereby designate the following as my
     beneficiary(ies) to receive all payments and shares due to me under the
     Plan:

NAME:
     __________________________________________________________________________
(please print)    (First)            (Middle)              (Last)

________________          ______________________________________________________
  (Relationship)                            (Address)

                                      AND

NAME:
     __________________________________________________________________________
(please print)    (First)            (Middle)              (Last)

________________          ______________________________________________________
  (Relationship)                            (Address)

10.  I understand that if I dispose of any shares received by me pursuant to the
     Plan within 2 years after the Offering Date (the first day of the Offering
     Period during which I purchased such shares) or within 1 year after the
     Purchase Date, I will be treated for federal income tax purposes as having
     received ordinary compensation income at the time of such disposition in an
     amount equal to the excess of the fair market value of the shares on the
     Purchase Date over the price which I paid for the shares, regardless of
     whether I disposed of the shares at a price less than their fair market
     value at the Purchase Date. The remainder of the gain or loss, if any,
     recognized on such disposition will be treated as capital gain or loss.

     I hereby agree to notify the Company in writing within 30 days after the
     date of any such disposition, and I will make adequate provision for
     federal, state or other tax withholding obligations, if any, which arise
     upon the disposition of the Common Stock. The Company may, but will not be
     obligated to, withhold from my compensation the amount necessary to meet
     any applicable withholding obligation including any withholding necessary
     to make available to the Company any tax deductions or benefits
     attributable to the sale or early disposition of Common Stock by me.

                                      -2-
<PAGE>

11.  If I dispose of such shares at any time after expiration of the 2-year and
     1-year holding periods, I understand that I will be treated for federal
     income tax purposes as having received compensation income only to the
     extent of an amount equal to the lesser of (1) the excess of the fair
     market value of the shares at the time of such disposition over the
     purchase price which I paid for the shares under the option, or (2) 15% of
     the fair market value of the shares on the Offering Date. The remainder of
     the gain or loss, if any, recognized on such disposition will be treated as
     capital gain or loss.

     I understand that this tax summary is only a summary and is subject to
     change. I further understand that I should consult a tax advisor concerning
     the tax implications of the purchase and sale of stock under the Plan.

12.  I hereby agree to be bound by the terms of the Plan. The effectiveness of
     this Subscription Agreement is dependent upon my eligibility to participate
     in the Plan.

SIGNATURE:
          _____________________________________________________________________

SOCIAL SECURITY #:
                  _____________________________________________________________

DATE:
     __________________________________________________________________________

SPOUSE'S SIGNATURE:
                   ____________________________________________________________
(necessary if beneficiary is not spouse):

_______________________________________________________________________________
                             (Print spouse's name)
<PAGE>

                       INTEGRATED CIRCUIT SYSTEMS, INC.

                       2000 EMPLOYEE STOCK PURCHASE PLAN

                             NOTICE OF WITHDRAWAL

     I, __________________________, hereby elect to withdraw my participation in
the Integrated Circuit Systems, Inc. 2000 Employee Stock Purchase Plan (the
"Plan") for the Offering Period that began on _________ ___, _____. This
withdrawal covers all Contributions credited to my account and is effective on
the date designated below.

     I understand that all Contributions credited to my account will be paid to
me within ten (10) business days of receipt by the Company of this Notice of
Withdrawal and that my option for the current period will automatically
terminate, and that no further Contributions for the purchase of shares can be
made by me during the Offering Period.

     The undersigned further understands and agrees that he or she shall be
eligible to participate in succeeding offering periods only by delivering to the
Company a new Subscription Agreement.

Dated:_____________       ________________________________
                              Signature of Employee

                          ________________________________
                              Social Security Number<PAGE>

                                                                   Exhibit 10.98

                                Master Agreement

This Agreement ("Agreement") is entered into as of this 23rd day of December,
1999 ("Effective Date"), by and between ClinTrials BioResearch Ltd. ("CTBR"),
having a place of business at 87 Senneville Road, Senneville, Quebec, Canada,
H9X 3R3, and Inspire Pharmaceuticals, Inc. ("Sponsor"), having a place of
business at 4222 Emperor Boulevard, Suite 470, Durham, NC 27703, U.S.A.

With respect to all studies conducted under this Agreement and in consideration
of mutual covenants set forth herein, CTBR and Sponsor agree as follows:

                               GENERAL CONDITIONS

     1.1. Conduct of Study: CTBR will conduct the work described in the letter
          ----------------
          of agreement ("Letter of Agreement") and the protocol ("Protocol") in
          accordance with the general conditions hereinafter described.

     1.2. Price Adjustments/Verification: Prices quoted pursuant to this
          ------------------------------
          Agreement shall be subject to verification or adjustment if accepted
          more than sixty (60) days after the date of any offer. If not accepted
          by the Sponsor prior to sixty (60) days after the date of the offer,
          CTBR reserves itself the right to terminate this offer by providing
          written notice to the Sponsor, without any recourse whatsoever being
          available to the Sponsor. The price quoted is also conditional on CTBR
          receiving all necessary test material and other data required to
          conduct the study described in the Protocol within ninety (90) days of
          the date of this offer.

     1.3. Timeline of Study: The date of commencement of work and the issuance
          -----------------
          date of the audited draft report ("Draft Report") will be mentioned in
          the Letter of Agreement.

     1.4. Price: The price for the work is detailed in the Letter of Agreement
          -----
          and each payment shall be payable by Sponsor within 30 days of receipt
          of invoice.

     1.5. Confidentiality Information
          ---------------------------

          (a)  Confidential Obligation: CTBR agrees that all materials,
               -----------------------
               documents, data, reports and information provided to it by the
               Sponsor and, except as provided herein, all materials, documents,
               data, reports and information developed by CTBR pursuant to this
               Agreement, is and shall be considered as confidential information
               of the Sponsor (collectively, the "Sponsor Confidential
               Information") and the sole property of the Sponsor. The Sponsor
               agrees that all information disclosed to the Sponsor about CTBR's
               internal operations and systems, including but not limited to
               CTBR Property described in this Section, is and shall be
               considered as confidential information of CTBR (collectively, the
               "CTBR Confidential Information") and is the sole property of
               CTBR.
<PAGE>

                                                                               2

               Each party agrees to hold the Confidential Information of the
               other party in strict confidence during the term of this
               Agreement and for 10 years after the termination of this
               Agreement and shall not, without the consent of the other party,
               (a) reveal, publish, report or disclose any Confidential
               Information to any person or entity, or (b) use any of such
               party's Confidential Information for the benefit of any person or
               entity, or for any purpose, other than as may reasonably be
               necessary for the conduct of the Services and the Studies as
               contemplated by this Agreement.

          (b)  Exceptions: The obligation of the parties regarding Confidential
               ----------
               Information shall not apply to information which: (a) is or
               becomes available to the public other than as a result of
               disclosure by the receiving party: (b) becomes available to the
               receiving party on a non-confidential basis from a source which
               is not obligated to hold such information in confidence; (c) is
               developed by the receiving party independently, and not as part
               of the Services provided under this Agreement, as evidenced by
               written records; (d) was in the possession of the receiving party
               prior to the receipt from the disclosing party or the creation of
               the information pursuant to this Agreement; or (e) is required by
               law to be disclosed, provided that the owner of the Confidential
               Information shall be notified in advance, when possible, and
               given a reasonable opportunity to oppose such disclosure.

          (c)  Return of Confidential Information: Upon the completion or
               ----------------------------------
               earlier termination of this Agreement, CTBR will promptly return
               to the Sponsor, at the Sponsor's expense, all of the Sponsor
               Confidential Information, as well as all applicable portions of
               the written or computer stored material which incorporates any of
               the Sponsor Confidential Information, provided that CTBR may
               retain in its confidential files one copy of such documents as it
               may determine reasonably necessary for regulatory, legal or
               insurance purposes.

          (d)  Remedies: Each party acknowledges that the disclosure of
               --------
               Confidential Information of the other party without such party's
               express, written permission will cause such party irreparable
               harm and that the breach or threatened breach of the
               nondisclosure provisions of this Agreement will entitle the owner
               of the Confidential Information to injunctive relief, in addition
               to any other legal remedies that may be available to it.

     1.6. Ownership of Property.
          ----------------------

          (a)  Ownership: All materials, documents, data, information, reports
               ---------
               and suggestions of every kind and description supplied to CTBR by
               the Sponsor or prepared or developed by CTBR pursuant to this
               Agreement (except for CTBR Property described below) shall be the
               sole and exclusive property of the Sponsor and the Sponsor shall
               have the right to make whatever use it deems desirable, without
               objection or liability to CTBR of any such materials, documents,
               data reports and information. All such materials, records,
               documents, data, information and reports are subject to audit by
               the Sponsor during regular business hours, at the Sponsor's
               discretion and upon reasonable notice to CTBR, to verify CTBR's
               compliance with this Agreement and the Protocols. It is
               acknowledged that CTBR is possessed of certain technical
               expertise relating to computers, software, and drug development
               which have been independently developed by CTBR without the
               benefit of any information provided by the Sponsor. The parties
               agree that any computer software programs, statistical,
               methodologies, processes, methods and other analyses used by CTBR
               under or during the term of this Agreement (except where such
               program, methodology, process, method or analyses is created or
               developed at the request and expense of the Sponsor or with the
               assistance of the Sponsor) are the product of CTBR's technical
               expertise possessed and developed by CTBR and are the sole and
               separate property of CTBR (the "CTBR Property").
<PAGE>

                                                                               3

          (b)  Data Retention: CTBR may retain copies of all such materials,
               --------------
               records, documents, data, information and reports as required by
               applicable laws, rules and regulations. Unless otherwise required
               by law or by the terms of this Agreement, all such the Sponsor
               property which CTBR shall have in its possessions shall be
               maintained by CTBR for a period of not less than one (1) year
               from the date of receipt thereof and shall be organized in such a
               manner that it will be ready for immediate reference. After one
               (1) year or such longer period as may be required by applicable
               laws or regulations, CTBR may dispose of such property in
               accordance with the Sponsor's instructions. If the Sponsor fails
               to give said instructions, CTBR shall so notify the Sponsor; and
               if said instructions are still not forthcoming within thirty (30)
               days of said notification, then CTBR may destroy such property as
               it determines.

     1.7. Monitoring of Study. Authorized representatives of the Sponsor may
          -------------------
          inspect the Study at any time during normal business hours. CTBR will
          notify the Sponsor, by telephone, telecopier or telex and subsequently
          in writing, of any significant changes which occur during the course
          of the Study.

     1.8. Protocol Amendment. If, at a future date, changes in the Protocol
          ------------------
          appear desirable or become necessary due to governmental regulatory
          requirements, such changes shall be made through prior written
          agreement (protocol amendment) between the Sponsor and CTBR. If such
          changes can be expected to affect the timing of the delivery of the
          Draft or Final Report(s), then CTBR shall submit amended delivery
          dates for the Sponsor's written approval. If such changes can be
          expected to affect the price for the Study, CTBR shall submit a
          written estimate; however, CTBR shall, in each case, recover the
          additional charges arising out of the performance of such work. No
          deviation from the Protocol may be made without specific written
          authorization and approval of the Sponsor.

     1.9. Additional Charges. The parties acknowledge that during the course of
          ------------------
          performing the Study in accordance with the Protocol, additional costs
          may be incurred by CTBR as a result of procedural changes which do not
          amount to or require a change in the Protocol, but which are deemed
          necessary by CTBR to successfully perform said Study, and which could
          not be foreseen at the time of the preparation of the Protocol. If
          such procedural changes occur, CTBR shall advise the Sponsor prior to
          their implementation and solicit the Sponsor's agreement as to the
          necessity and additional cost thereof. Should CTBR be unable to
          contact the Sponsor in advance, the Sponsor agrees that in order to
          maintain the integrity of the Study, CTBR may proceed accordingly and
          be entitled to recover such additional costs from the Sponsor upon
          presentation of an explanation of such procedural changes and the
          necessity thereof.

                              DUTIES OF THE SPONSOR

     2.1. Raw Data. Should the Sponsor, during the course of the Study, request
          --------
          raw data, or certified copies of same, the Sponsor shall pay CTBR for
          the preparation, verification, duplication and handling of such data,
          in accordance with CTBR's established charges for such services at
          that time and Sponsor may contact CTBR to support characterization
          requirements..

     2.2. Product Characterization. It is the responsibility of the Sponsor to
          ------------------------
          define the stability and other relevant characteristics of the test
          article(s) including handling precautions and safe methods of disposal
          of residual test article and/or test article preparation. Where
          applicable, it is also the Sponsor's responsibility to define the
          short-term stability of the test article(s) in the solvent or
          suspending agent to be used.
<PAGE>

                                                                               4

                        DUTIES OF CLINTRIALS BIORESEARCH

     3.1. Patents and Inventions. All right and title to any inventions,
          ----------------------
          procedures or techniques designed, developed, produced or manufactured
          by CTBR in order to fulfill its obligations under this Agreement and
          the Protocol shall be and remain the exclusive property of CTBR,
          unless

          (a) any such invention, procedure or technique is designed, developed,
          produced or manufactured by CTBR at the specific request of the
          Sponsor and reference to such fact is made in the Protocol, or

          (b) any such invention, procedure or technique is a direct result of
          the use of Confidential Information.

     3.2. Contractual Obligations. The obligations of CTBR under this Agreement
          -----------------------
          are limited to:

          (a) performing the study in accordance with this Agreement and the
          Protocol; and

          (b) using its best efforts to ensure that the Study is conducted in
          accordance with generally accepted standards of the industry and
          government and regulatory standards applicable at the time of the
          signature of this Agreement.

          CTBR does not warrant or represent that the results of the Study will
          be acceptable to any regulatory or governmental agency to which they
          are presented nor that the results of the Study will enable the
          Sponsor to market or otherwise exploit the test article(s). CTBR shall
          not be liable for any delay in or failure of performance hereunder due
          to any contingency beyond its control, including, without limiting the
          generality of the foregoing, any act of God, war, mobilization, riot,
          strike, fire, flood, disease, power failure, embargo or shortage of
          supplies.

                                    MATERIALS

     4.1. Materials and Documentation. All raw data, documentation, protocols,
          ---------------------------
          specimens, test, control archive sample, final reports and all
          Confidential Information, (the "Materials and Documentation")
          generated as a result of this Study are the exclusive property of the
          Sponsor and shall be retained by CTBR for a period of one (1) year
          (the "Retention Period") following issuance of the Final Report. Upon
          completion or termination of the Study, CTBR shall remit to the
          Sponsor all Materials and Documentation in its possession or under its
          control, other than any Materials and Documentation which CTBR is
          required to retain by applicable law or regulation. During the
          Retention Period, the Materials and Documentation shall be made
          available for inspection by the Sponsor or any authorized agent
          designated by the Sponsor.

          If the Sponsor is in breach of any obligation towards CTBR, including
          the non-payment of any sum owing to CTBR, CTBR shall be entitled to
          withhold and keep in its possession the Materials and Documentation,
          and the Report(s) until any such default is cured by the Sponsor.

     4.2. Governmental Inspection. The Sponsor is to be notified as soon as
          -----------------------
          practical in the event that CTBR's facilities are the subject of an
          inspection by a duly authorized representative of a governmental
          regulatory or administrative department or agency (the "Inspector")
          which may involve the subject matter of this Agreement. CTBR shall
          provide the Sponsor with the following data:

          (a) purpose of the inspection;
          (b) name and credential number of the Inspector; and
          (c) a copy of form(s) issued by the Inspector, if any.
<PAGE>

                                                                               5

          In addition, CTBR agrees to cooperate with governmental authorities
          unless otherwise required by law, CTBR shall not permit any
          inspections involving the Study or the Confidential Information until
          further instructions are received from the Sponsor or until the
          Sponsor and the inspecting agency have reached an appropriate
          agreement. Unless otherwise required by law, no copies of the Protocol
          or other Confidential Information may be given by CTBR to the
          Inspector. Any request for such information is to be redirected to the
          Sponsor.

     4.3. Limitation of Liability. CTBR, its officers, directors and employees
          -----------------------
          shall not be responsible for any direct or indirect damages sustained
          by the Sponsor resulting from any loss, destruction or damage to the
          Materials and Documentation or of the test article(s), for any reason
          whatsoever, except in the case of CTBR's own negligence, recklessness
          or willful misconduct, nor shall CTBR be responsible for any direct or
          indirect damage suffered by the Sponsor arising from causes beyond the
          control of CTBR, including, without limiting the generality of the
          foregoing, any act of God, war, mobilization, riot, strike, lock-out,
          labour dispute, fire, flood, disease, power failure, embargo, shortage
          of supplies or personnel.

                                   CURTAILMENT

     5.1. Curtailment. The Sponsor may curtail or reduce the scope of the Study
          -----------
          at any time upon thirty (30) days written notice to CTBR. In the event
          of any curtailment, CTBR and the Sponsor shall negotiate reduced
          charges for the remaining services, provided that in all cases these
          reduced charges will not be less than CTBR's direct and indirect
          costs.

                            TERMINATION OF THE STUDY

     6.1. Cancellation/Early Termination. The Sponsor shall have the right, at
          ------------------------------
          any time, to terminate any Study prior to completion by giving written
          notice to CTBR. In the event of notice, CTBR shall immediately use its
          best efforts to reduce cost to the Sponsor. In case of termination,
          the Sponsor shall pay CTBR all of its costs incurred or irrevocably
          obligated plus a pro rata portion of applicable profits computed to
          the date of termination.

                                  MISCELLANEOUS

     7.1. Delay in Preclinical Work. With respect to any animals purchased by
          -------------------------
          CTBR, as authorized by the Sponsor, for preclinical work to be
          performed under this Agreement, the parties hereto agree that the
          acclimation period shall be mentioned in the Letter of Agreement (the
          "Acclimation Period"). After the completion of the Acclimation Period,
          should there be any delay in the commencement of the Study that is
          attributable to the Sponsor, in any way, then the Sponsor agrees to
          reimburse housing fees to CTBR for the said delay at rates prevailing
          at the time of said delay.

     7.2. Disposal of Materials and Documentation. After the Retention Period,
          ---------------------------------------
          CTBR shall contact the Sponsor to determine disposition of the
          Materials and Documentation as follows:

          (a)  return of Materials and Documentation (shipping and insurance
               charges at the Sponsor's expense);

          (b)  extended storage of Materials and Documentation (to be charged at
               rates in effect at that time)

          (c)  disposal of Materials and Documentation (to be charged at rates
               in effect at that time).
<PAGE>

                                                                               6

     7.3. Reports. Two (2) copies of the Final Report(s) in CTBR's standard
          -------
          format, as specified in the Protocol, shall be supplied. If any
          changes to the standard report format are requested by the Sponsor and
          agreed to by CTBR, or if additional copies of the Final Report(s) are
          requested by the Sponsor, then there may be an additional charge to
          the Sponsor for preparation, handling and dispatch of such reports. If
          such changes can be expected to affect the timing of the delivery of
          the Final Report(s), then CTBR shall submit amended delivery dates for
          the Sponsor's written approval.

          If the draft report is not delivered to the Sponsor within the time
          frame agreed to by both parties, a penalty equal to 5% of final
          payment for each month of delay will be applicable.

     7.4. Advertising. Under no circumstances will the name of the Sponsor or
          -----------
          CTBR, or any of its personnel, be used for promotional literature or
          advertising without the prior written permission and approval of the
          Sponsor or CTBR, as the case may be.

     7.5  Publications. The Sponsor has the right to the initial publication of
          ------------
          the results of the Study. The Sponsor may also request CTBR to publish
          the results jointly with the Sponsor or independently. The Sponsor
          shall be responsible for all costs associated with any such
          publication. CTBR may only publish the results of a study with the
          written permission of Sponsor.

     7.6. Liability. The Sponsor recognizes that CTBR has not participated in
          ---------
          the manufacture of materials supplied by the Sponsor nor has it
          inspected, or been afforded the opportunity to inspect, the production
          techniques of the Sponsor, and that its sole responsibility is to test
          the test article in accordance with this Agreement and the Protocol.
          Accordingly, the Sponsor hereby releases CTBR and its affiliates,
          together with their officers, directors and employees, from any
          liability arising from the work to be performed by CTBR under this
          Agreement and the Protocol and the use which the Sponsor makes of the
          results obtained by CTBR. For greater certainty, but not so as to
          limit the generality of the foregoing, the Sponsor specifically
          releases CTBR and its affiliates, together with their officers,
          directors and employees, from any liability arising from:

          (a) any decision to market the test article(s) based on the results of
          the Study;

          (b) the use of the test article(s), or any subsequent derivation of
          it, by any party other than CTBR; and

          (c) any direct or indirect damages or losses, economic or otherwise,
          or any liability to third parties, which the Sponsor may incur
          pursuant to this Agreement and the Protocol.

          The Sponsor shall take up and be responsible for all costs associated
          with the defense of CTBR and its affiliates, together with their
          officers, directors and employees, as the case may be, and indemnify
          and hold CTBR and its affiliates, together with their officers,
          directors and employees, as the case may be, harmless from any and all
          liability, loss, damage (including loss of life), expense, causes of
          action, suits, claims or judgments arising from injury to person or
          property resulting from the performance by CTBR of this Agreement and
          the Protocol, or in any other way relating to the performance by CTBR
          of this Agreement or the Protocol, or from, or related to, the use of
          the test article(s), whether such claims are rightfully or wrongly
          brought or filed. The Sponsor agrees that CTBR may, if it so desires,
          employ attorneys of its own selection to appear and defend the claim
          or action, at the expense of CTBR. CTBR, at its option and expense,
          shall have the sole authority for the direction of the defense, and
          shall be the sole judge of the acceptability of any compromise or
          settlement of any claim or actions.
<PAGE>

                                                                               7

          The foregoing two (2) paragraphs shall not apply in the event of
          CTBR's negligence and recklessness or willful misconduct. CTBR shall
          not be considered negligent where it is following recognized
          procedures or performing the Study as required by the Sponsor.

          CTBR's maximum liability arising from CTBR's negligence in the
          performance of its obligations under this Agreement or the Protocol
          shall be limited to the amount of the insurance proceeds received as a
          result of any error or omission committed by CTBR in performance of
          its obligations pursuant to this Agreement. Sponsor shall have the
          option in any such instance to either (i) demanding indemnification
          from CTBR in respect of such liability, subject to the limitation of
          liability referred to above, or (ii) to reperform the Study at no
          additional cost, or (iii) to refund the compensation paid for the
          Study.

     7.7. Survival of Obligations. The completion, curtailment or termination of
          -----------------------
          this Agreement shall not relieve either party of its obligations to
          the other in respect of (i) maintaining the confidentiality of
          Confidential Information, (ii) obtaining consents for advertising
          purposes and publications, (iii) indemnification, (iv) compensation
          for services performed, and (v) appropriate reporting of any data
          obtained.

     7.8. Entire Agreement. This Agreement, together with any agreements and
          ----------------
          other documents to be delivered pursuant hereto, constitute the entire
          agreement between the parties pertaining to the subject matter hereof
          and supersede all prior agreements, understandings, negotiations and
          discussions, whether oral or written, of the parties, including,
          without limiting the generality of the foregoing, any Letter of
          Authorization for the purchase of animals addressed by the Sponsor to
          CTBR in respect of any preclinical work to be performed under this
          Agreement.

     7.9. Arbitration. Any mutual dispute, controversy or claim between both
          -----------
          parties arising out of or relating to this contract, or the breach
          thereof, shall be settled in the State of New York. However, if
          Sponsor is bringing arbitration, such arbitration hearings shall be
          conducted in the City of Montreal, Province of Quebec and if CTBR is
          bringing arbitration, such arbitration hearings shall be conducted in
          the State of North Carolina.

    7.10. Conflict. If any conflict shall appear between the provisions of this
          --------
          Agreement and the Protocol, the provisions of this Agreement shall
          govern and the conflicting provisions of the Protocol shall be deemed
          to have been changed or modified so as to remove such conflict.

    7.11. Languages. The parties acknowledge that they have required that the
          ---------
          present Agreement, as well as all documents, notices and legal
          proceedings executed, given or instituted pursuant to or relating
          directly or indirectly hereto be drawn up in English. Les parties
          reconnaissent avoir exige la redaction en anglais de la presente
          convention, ainsi que de tous documents executes, avis donnes et
          procedures judiciaires intentees, directement ou indirectement, a la
          suite ou relativement a la presente convention.
<PAGE>

                                                                               8

         IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed as of the Effective Date.

Inspire Pharmaceuticals, Inc.           CLINTRIALS BIORESEARCH, LTD.

By /s/ Donald J. Kellerman              By /s/ M.F. Ankcorn
-----------------------------------       --------------------------
                                        M. F. Ankcorn
                                        Chairman, President and CEO

                                        By /s/ Paul Bancroft
                                          --------------------------
                                        Paul H. Bancroft
5-23-00                                 Vice President, Finance and
-----------------------------------     Administration
Date

                                        December 23, 1999
                                        ----------------------------
                                        Date
<PAGE>

This format of a Letter of Agreement is to be use only for INS37217 and INS365
compound development programs

DATE

Inspire Pharmaceuticals, Inc.
4222 Emperor Boulevard, Suite 470
Durham, NC 27703
U.S.A.

                               LETTER OF AGREEMENT
                               -------------------

STUDY NO.:
---------

STUDY TITLE:
-----------

PROTOCOL DATED:
--------------

PRICE:  $ U.S.  (based on ___________ Protocol dated ____________
-----
                       and quote letter dated _________)

PAYMENT TERMS:
-------------

           "Refer to sample of Letter of Agreement for Payment Terms"

With respect to Inspire's INS37217 and INS365 compound development programs,
when the amount invoiced by CTBR reaches $800,000.00 U.S., CTBR will deduct from
the gross amount of every invoice (excluding animal cost) a discount of 7.5
percent (the "Applicable Discount").

This Applicable Discount shall be applicable against all invoices and shall come
into force as soon as the total of invoices issued exceeds the initial level of
$800,000.00 U.S. (excluding animal cost) on Inspire's INS37217 and INS365
compound development programs.  The Applicable Discount will remain in force for
two (2) consecutive years from the issuance of the first invoice and shall
thereafter be renewed for periods of one (1) year each.  However, CTBR reserves
the right to modify and/or terminate this Applicable Discount at any of the
renewal dates, with one (1) month prior written notice.  CTBR will list as a
separate line item, the discount applied on each invoice and all prices quoted
shall be exclusive of this discount.

The terms and conditions of the present Applicable Discount are confidential and
Sponsor shall ensure that such terms and conditions are not disclosed by Sponsor
to third parties, except to the extent required by law, rule or regulation or
judicial or administrative decree or order.  Failure to respect this
confidentiality will result in the immediate termination of any provisions
regarding Applicable Discount contained in this Letter of Agreement.
<PAGE>

                                                                               2

Inspire Pharmaceuticals, Inc.
Letter of Agreement
Study No.

COMMENCEMENT OF WORK:
--------------------

REPORTING TIME: We expect to deliver the audited draft report
--------------
                _________ weeks following last necropsy

ACCLIMATION PERIOD:
------------------

This Letter of Agreement will be governed by the terms and conditions of the
Master Agreement dated December 23, 1999 between ClinTrials BioResearch Ltd. and
Inspire Pharmaceuticals, Inc.

For Inspire Pharmaceuticals, Inc.     For ClinTrials BioResearch Ltd.
------------------------------------  ------------------------------------

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

                                      M.F. Ankcorn
                                      Chairman, President and CEO

------------------------------------
Date                                  Paul H. Bancroft
                                      Vice President, Finance and
                                      Administration

                                      ---------------------------
                                      Date
<PAGE>

DATE

Inspire Pharmaceuticals, Inc.
4222 Emperor Boulevard, Suite 470
Durham, NC 27703
U.S.A.

                                 LETTER OF AGREEMENT
                                 -------------------

STUDY NO.:
---------

STUDY TITLE:
-----------

PROTOCOL DATED:
--------------

PRICE:
-----

PAYMENT TERMS:
-------------

          1)   For studies six (6) months or less in duration:
                  50% - 1st installment, animal arrival
                  40% - 2nd installment, at necropsy
                  10% - 3rd installment, on receipt of audited or non-audited
                        draft report

          2)  For studies greater than six (6) months in duration:
                  For mouse/rat studies: 15% - 1st installment, animal arrival
              or  For dog/primate studies: 20% - 1st installment, animal
                  arrival
                  Thereafter equal quarterly installments with
                  the final installment due on receipt of the audited or
                  non-audited draft report

          3)  For analytical chemistry or drug metabolism and pharmacokinetic
              studies only:
                  50% - 1st installment, upon commencement of work
                  40% - 2nd installment, upon completion of work
                  10% - 3rd installment, on receipt of audited or non-audited
                        draft report
<PAGE>

                                                                               2

Inspire Pharmaceuticals, Inc.
Letter of Agreement
Study No.

COMMENCEMENT OF WORK:
--------------------

REPORTING TIME:
--------------

ACCLIMATION PERIOD:
------------------

This Letter of Agreement will be governed by the terms and conditions of the
Master Agreement dated December 23, 1999 between ClinTrials BioResearch Ltd. and
Inspire Pharmaceuticals, Inc.

For Inspire Pharmaceuticals, Inc.     For ClinTrials BioResearch Ltd.
------------------------------------  ------------------------------------

                                      M.F. Ankcorn
                                      Chairman, President and CEO

------------------------------------
Date                                  Paul H. Bancroft
                                      Vice President, Finance and
                                      Administration

                                      Date

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