Document:

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                                                                  EXHIBIT 10.10

                               RESEARCH AGREEMENT

                            (WITH OPTION TO LICENSE)

                                     BETWEEN

                           SOUTHERN RESEARCH INSTITUTE

                                       AND

                            DRUG ABUSE SCIENCES, INC.

                             DATE: FEBRUARY 13, 1997

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                                TABLE OF CONTENTS
<TABLE>
<S>                                                                                                   <C>
BACKGROUND..............................................................................................1

DEFINITIONS.............................................................................................1

THE PROJECT.............................................................................................2

TERM....................................................................................................2

CHARGES AND INVOICING...................................................................................3

MATERIALS...............................................................................................4

DELIVERABLES............................................................................................4

OWNERSHIP OF INVENTIONS AND DISCOVERIES.................................................................5

PATENT MATTERS..........................................................................................6

PRODUCT COMMERCIALIZATION...............................................................................6

PUBLICITY...............................................................................................7

CONFIDENTIALITY.........................................................................................7

LIMITATION OF LIABILITY.................................................................................8

INDEMNIFICATION.........................................................................................8

MISCELLANEOUS...........................................................................................9

   Assignment...........................................................................................9
   Entire Agreement.....................................................................................9
   Parties Independent..................................................................................9
   Waivers; Amendments.................................................................................10
   Further Assurances..................................................................................10
   Notice..............................................................................................10
   Applicable Law; Divisibility........................................................................11
   Headings............................................................................................11
   Translations........................................................................................11
   Force Majeure.......................................................................................11
   Agreement Under Seal................................................................................11
   Counterparts........................................................................................11

EXHIBIT A - PRODUCT DESCRIPTION

EXHIBIT B - PATENTS AND PATENT APPLICATIONS

EXHIBIT C - PROPOSAL

EXHIBIT D - PROJECT SCHEDULE

EXHIBIT E - OPTION AGREEMENT OR LETTER OF AUTHORIZATION

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          CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED
          AND FILED SEPARATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT
          HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

                               RESEARCH AGREEMENT
                            (WITH OPTION TO LICENSE)

THIS AGREEMENT ("RESEARCH AGREEMENT") is made and entered into on February 28,
1997, by and between SOUTHERN RESEARCH INSTITUTE, having an address at 2000
Ninth Avenue South, Birmingham, Alabama, 35205, United States of America
(hereinafter "SOUTHERN"), and DRUG ABUSE SCIENCES, INC., having an address at
1420 Southdown Road, Hillsborough, California, 94010, and Affiliates
(hereinafter referred to collectively as "DAS", where Affiliates are defined
below).

                                   BACKGROUND

SOUTHERN is a not-for-profit corporation organized and operated for scientific
purposes and is engaged in conducting scientific research in the public
interest; and

DAS desires that SOUTHERN conduct the research described in this RESEARCH
AGREEMENT and SOUTHERN's Proposal P96.417 (hereinafter the "Proposal"). A copy
of the Proposal can be found in Exhibit C.

THEREFORE, in consideration of the premises and mutual promises and covenants
herein contained, SOUTHERN and DAS agree as follows:

DEFINITIONS:

                  TECHNOLOGY - Means any and all technical information,
                  formulations, processes, know-how, data, specifications,
                  characterization methods, characterization results, and other
                  proprietary information, whether or not patented or
                  patentable, owned or used by SOUTHERN and relating to the
                  process for imparting controlled release or other
                  performance-enhancing qualities to products, including but not
                  limited to the patents (issued, pending, or subsequently filed
                  and including all divisionals, continuations,
                  continuations-in-part or other related United States and
                  foreign applications) listed in Exhibit B to which may be
                  added additional patents or patent applications resulting from
                  developments under this RESEARCH AGREEMENT.

                  PRODUCT TECHNOLOGY - Means any part of the Technology, as
                  defined above, specifically utilized in work on this project
                  and to produce DAS' ultimate product(s), compound(s), or
                  formulation(s), listed in Exhibit A, which Exhibit A may be
                  amended from time to time based on developments under this
                  RESEARCH AGREEMENT.

                  AFFILIATE - Any entity or organization that controls, is
                  controlled by or is under common control with a party. For
                  this purpose,

[*] CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT
TO THE OMITTED PORTIONS.

                                       1

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                  "control" shall mean the ownership (whether directly or
                  indirectly) of forty-nine percent (49%) or more of the voting
                  stock or other equity interest or the ability (whether
                  directly or indirectly) to determine the policy or actions of
                  any entity on account of contract or other relationships.

                  NALTREXONE-Naltrexone, its physiologically active salts,
derivatives, precursors or other chemical form of naltrexone which provides the
physiological activity of naltrexone.

                                   THE PROJECT

         1. (a) DAS hereby establishes a research project with SOUTHERN
(hereinafter the "Project"), the purpose of which is to develop the product(s)
listed in Exhibit A (hereinafter the "PRODUCT").

            (b) During the term of this RESEARCH AGREEMENT, SOUTHERN will
undertake the Project described in Paragraph l(a) exclusively for DAS [* * *].

            (c) SOUTHERN grants to DAS an exclusive option to license the
PRODUCT developed during the term of this RESEARCH AGREEMENT (hereinafter said
term shall be referred to as the "Option Period"). The purpose of such option
to license is for DAS to evaluate its interest in commercializing the PRODUCT.
The payment for such option to license shall be in the amount and shall occur
pursuant to Paragraph 3(a) herein. DAS' rights under this option to license are
described in Paragraph 8 herein.

            (d) Nothing contained herein shall be interpreted to preclude
SOUTHERN at any time from undertaking efforts similar to those performed under
this RESEARCH AGREEMENT for third parties or for internal utilization, provided
that such efforts do not involve the PRODUCT or a product which is directly
competitive with PRODUCT for a period of three (3) years from the completion of
the Project and thereafter, so long as DAS is in clinical studies with the
PRODUCT or is paying royalties to SOUTHERN under a license agreement for
PRODUCT. By "directly competitive with PRODUCT" is intended a slow release
depot product dispensing a compound which can serve at least in part as an
opioid antagonist and can serve as a competitive substitute in the marketplace
for PRODUCT.

                                      TERM

         2. (a) This RESEARCH AGREEMENT and the Option Period shall become
effective on the date written above and shall terminate the earlier of three
years (3 years) thereafter or upon completion of the services which DAS may
require for entering and performing clinical studies toward the
commercialization of PRODUCT, except as otherwise provided herein. It is the
intent of the parties that a PRODUCT acceptable to DAS shall be delivered to
DAS not later than [* * *] from the initiation of the development set forth in
the Proposal.

            (b) Paragraphs 5, 6, 7, 8, 9, 10, 11, and 12 shall survive the
termination of this RESEARCH AGREEMENT.

[*] CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT
TO THE OMITTED PORTIONS.

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            (c) DAS can terminate this RESEARCH AGREEMENT, which will also
terminate the option to license, by giving SOUTHERN a written notice stating
the desired termination date. This notice shall be given at least [* * *] in
advance of the desired termination date. DAS shall pay to SOUTHERN in full for
all of SOUTHERN's activities occurring under this RESEARCH AGREEMENT through
the date of termination. In the event that DAS terminates this RESEARCH
AGREEMENT prior to delivery of PRODUCT, SOUTHERN agrees to negotiate with DAS
reasonable compensation for DAS' payments prior to such termination in the
event that SOUTHERN enters into a subsequent research agreement for naltrexone
microspheres and employs Product Technology developed under this RESEARCH
AGREEMENT. Such compensation shall take into consideration the fact of DAS'
termination, the total amount paid by DAS, the extent to which the Product
Technology will be used, the savings in performing such future research which
SOUTHERN will enjoy, the period of time elapsing between the termination by DAS
and the entering into such subsequent research agreement, and such other
considerations which are relevant to the determination of compensation.

            (d) The term of this RESEARCH AGREEMENT and the Option Period can
be extended subject to mutual agreement in writing between DAS and SOUTHERN.

                              CHARGES AND INVOICING

         3. (a) Upon signing of this RESEARCH AGREEMENT, DAS shall immediately
pay SOUTHERN [* * *] for the option to license described in Paragraph l(c)
herein, which option shall remain in effect for a period of one (1) year.
Thereafter, the option may be extended for a second year by a payment of [* * *]
and for a third year by a payment of [* * *].

            (b) DAS' liability for the payment of charges in carrying out the
Project shall not exceed [* * *] without the written consent of DAS. Promptly
after execution of this Agreement and in not more than fifteen (15) days, DAS
shall give to SOUTHERN [* * *] as a prepayment to be maintained as a credit
against future payments until the remaining amount of payment is [* * *] or
less. Notwithstanding the above, if SOUTHERN fails to provide a product
fulfilling the specifications set forth in the Proposal, then DAS shall have a
free option for three (3) years from the date of initiation of the Project.

            (c) DAS shall pay to SOUTHERN the sum of the charges incurred
during each month within 30 days of the invoice date.

            (d) SOUTHERN reserves the right to terminate this RESEARCH
AGREEMENT and the option to license, if DAS fails to pay any invoice [* * *]
from the invoice date.

            (e) Upon receipt of DAS' written notice to terminate this RESEARCH
AGREEMENT, SOUTHERN will promptly discontinue work on the Project and will
invoice DAS for the sum of any uninvoiced charges incurred prior to DAS'
requested termination date. DAS shall pay to SOUTHERN the sum of the charges
listed on this invoice before termination of this RESEARCH AGREEMENT.

[*] CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT
TO THE OMITTED PORTIONS.

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                                    MATERIALS

         4. (a) With respect to the Project, SOUTHERN shall provide the
services of such personnel, laboratory facilities, equipment, chemicals, and
other supplies to conduct its activities under this RESEARCH AGREEMENT.
SOUTHERN shall provide as Exhibit D the names of the senior personnel who will
be working on the Project, the anticipated period of time such personnel will
be working on the Project, the anticipated proportion of their time during that
period to be spent on the Project, and a brief resume of each of the senior
personnel. In addition to the milestones set forth in the Proposal, the status
of the Project at six (6) months from the initiation of the Project shall be
treated as a milestone. At the time of each of the milestones, the parties
shall meet and assess the progress of the Project. The information set forth in
Exhibit D shall not be binding on SOUTHERN, but SOUTHERN will notify DAS of any
significant change in personnel or charges.

            (b) DAS agrees to supply to SOUTHERN, at no charge to SOUTHERN,
such necessary quantities of naltrexone ("Material") for the Project at such
times as SOUTHERN may reasonably request in order to complete the Project.
SOUTHERN shall give DAS reasonable notice of any need for the Material, so as
to allow DAS to obtain reasonable delivery of the Material without delaying the
Project.

                                  DELIVERABLES

         5. (a) SOUTHERN will furnish DAS timely progress reports on a monthly
basis summarizing the results of the Project and technical reports on
completion of a specific task or activity. These progress reports shall contain
technical information generated on the Project, except the details of the
process to make the PRODUCT.

            (b) SOUTHERN will provide research samples of the PRODUCT
("Research Samples") to DAS for evaluation as they become available. With the
Research Samples, SOUTHERN will provide DAS with sufficient information to
evaluate the Research Samples, but SOUTHERN will not disclose to DAS technical
details of the process to make the Research Samples. The Research Samples shall
be used by DAS for research purposes only and DAS shall not distribute the
Research Samples to a third party without permission of SOUTHERN, except that
DAS may without permission give the Research Samples to laboratories for
testing and evaluation, which laboratories shall agree not to analyze the
samples for their composition. Information generated by DAS from use of
Research Samples will be shared in confidence with SOUTHERN and will not be
published, presented publicly, such as at scientific meetings, or patented by
either DAS or SOUTHERN without prior written agreement of the parties, except
that DAS may file a patent application and foreign analogs thereof solely to
cover the Product provided DAS and SOUTHERN shall cooperate with DAS in the
filing of such patent application and foreign analogs. No product based upon
said Research Samples or SOUTHERN's proprietary or confidential technical
information shall be commercialized without license from SOUTHERN unless
provided DAS by a third party who has developed such product independently of
SOUTHERN prior to the conclusion of the Project. DAS will promptly notify
SOUTHERN in the event that DAS receives an offer from a third party to supply
such product and provide reasonable evidence of its independent development.

[*] CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT
TO THE OMITTED PORTIONS.

                                       4
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            (c) It is understood and agreed that said Research Samples cannot
be used in humans.

            (d) Should any phase of this Project involve the supply of clinical
samples of the PRODUCT ("Clinical Samples") by SOUTHERN for use in humans, DAS
hereby represents and warrants to SOUTHERN that all human clinical protocols
involving the use of any Clinical Samples to be provided under this and/or
subsequent agreements were reviewed by the appropriate Regulatory Agency(ies)
and Institutional Human-Use Review Board(s) for analysis of risk, benefit, and
safety to human subjects and compliance with all applicable procedures, laws,
and regulations. It is agreed that said Clinical Samples shall be prepared
under current Good Manufacturing Practices (cGMP) and supply of such Clinical
Samples to DAS shall occur after SOUTHERN receives from DAS written
verification that appropriate Regulatory Agency(ies) and Institutional
Human-Use Review Board(s) approvals are in place.

            (e) Prior to preparing any Clinical Samples, SOUTHERN reserves the
right to reassess its potential liability arising from such use and to
renegotiate the indemnity provisions of this RESEARCH AGREEMENT. SOUTHERN shall
provide DAS with the basis for its request for renegotiation and substantiate
the reasons for the change in indemnity provisions.

                     OWNERSHIP OF INVENTIONS AND DISCOVERIES

         6. (a) SOUTHERN represents that each of its employees has entered into
an employment agreement that provides for assignment to SOUTHERN of all
inventions made by such employee during the course of his employment with
SOUTHERN.

            (b) DAS shall have title to any and all discoveries relating to
preparations and/or formulations and/or methods of use of the formulations
(collectively, the "Composition/Method Invention") in connection with this
Project, solely made or obtained during the term of this RESEARCH AGREEMENT by
personnel of DAS engaged in work on the Project. SOUTHERN shall have title to
any Composition/Method Invention in connection with this Project solely made or
obtained during the term of this RESEARCH AGREEMENT by personnel of SOUTHERN
engaged in the work on the Project. DAS and SOUTHERN shall have title to any
Composition/Method Invention in connection with this Project jointly made or
obtained during the term of this RESEARCH AGREEMENT by personnel of SOUTHERN
and employees of DAS engaged in work on the Project. Such Composition/Method
Invention, whether patentable or not, shall promptly be made known to DAS in
writing. Whether or not a Composition/Method Invention patent issues as a
result of the research herein, SOUTHERN shall grant to DAS the right to use the
Composition/Method Invention only for the PRODUCT contingent upon the signing
of a license agreement ("LICENSE AGREEMENT") by the parties. If a jointly owned
patent issues, DAS shall assign its rights to non-PRODUCTS to SOUTHERN, while
retaining a non-exclusive non-transferable royalty-free license.

            (c) SOUTHERN shall have title to any and all discoveries relating
to chemical and/or fabrication processes (collectively, the "Process
Invention") arising from research investigations under this Project, made or
obtained during the term of this RESEARCH AGREEMENT by personnel of SOUTHERN
engaged in the work on the Project. SOUTHERN shall grant to DAS the right to
use such Process Invention on which letters patent issue to

[*] CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT
TO THE OMITTED PORTIONS.

                                       5
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manufacture only the PRODUCT contingent upon the signing of the LICENSE
AGREEMENT by the parties.

            (d) SOUTHERN shall grant to DAS the right to use SOUTHERN's
existing inventions listed in Exhibit B. DAS can use such existing inventions
to manufacture only the PRODUCT in accordance with the LICENSE AGREEMENT.

                                 PATENT MATTERS

         7. (a) Any expense for the drafting, filing, assignment, recording of
assignment, prosecution, annuities, and maintenance of United States or foreign
patent applications and patents for Composition/Method Inventions arising from
research investigations of this Project shall be borne by DAS during the Option
Period and during the period that such patent applications and patents are
exclusively licensed to DAS for Product. SOUTHERN shall be responsible for all
patent prosecution for Composition/Method Inventions and all decisions thereto,
except that under any LICENSE AGREEMENT, DAS shall assume all costs and have
control of all Composition/Method of Use patents covering Product.

            (b) Any expense for the drafting, filing, assignment, recording of
assignment, prosecution, annuities, and maintenance of United States or foreign
patent applications and patents for Process Inventions arising from research
investigation of this Project shall be borne by SOUTHERN. SOUTHERN shall be
responsible for all patent prosecution for Process Inventions and all decisions
thereto.

            (c) Both SOUTHERN and DAS shall have the opportunity for a timely
textual review of patent filing and prosecution matters related to
Composition/Method Invention applications that result from research
investigations of this Project.

                            PRODUCT COMMERCIALIZATION

         8. (a) At any time during the Option Period, DAS upon written notice
to SOUTHERN, may begin negotiating towards entering into a LICENSE AGREEMENT
for the PRODUCT.

            (b) No product based upon the Technology, derivatives thereof, or
their use shall be commercialized by DAS or any third party without license
from SOUTHERN, except as provided for in Article 5 para. (b).

            (c) Southern BioSystems, Inc. and DAS shall negotiate prior to
entering Phase II clinical studies for Southern BioSystems, Inc. to manufacture
the PRODUCT for commercial sale. Therefore, at any time prior to completion of
Phase I human clinical studies, the parties will use reasonable efforts to
negotiate and enter into a definitive supply agreement under which Southern
BioSystems, Inc., will manufacture the PRODUCT for DAS. If DAS and Southern
BioSystems, Inc., do not enter into a supply agreement or if DAS desires to
establish a second manufacturing source for the PRODUCT, DAS may identify a
third-party contract manufacturer capable of supplying DAS' PRODUCT
requirements. If DAS executes a supply agreement with a third party, SOUTHERN
will at DAS' expense assist DAS and such third party in utilizing the Project
Technology to manufacture the PRODUCT. Such third party shall be

[*] CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT
TO THE OMITTED PORTIONS.

                                       6
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subject to SOUTHERN's reasonable approval and shall agree in writing to be
bound by the confidentiality and other relevant provisions of this RESEARCH
AGREEMENT.

                                    PUBLICITY

         9. No publication, advertising, or publicity matter having any
reference to either DAS or SOUTHERN, expressed or implied, shall be made use of
by either party or anyone on behalf of either party, unless and until such
matter shall have first been mutually agreed upon in writing.

                                 CONFIDENTIALITY

        10. (a) DAS and SOUTHERN agree that they will exert diligent efforts to
ensure their employees, agents, and consultants will not disclose or publish
any proprietary information, confidential technical information, or
confidential business information (collectively hereinafter referred to as
"Information") transmitted to one another for use in the performance of this
Project or new information developed by DAS or SOUTHERN in connection with this
Project. The confidentiality obligations herein shall not apply to:

                  i.       information, that at the time of disclosure, is in
                           the public domain; or

                  ii.      information, that after disclosure, becomes available
                           to the public or is lawfully made available to DAS or
                           SOUTHERN by a third party without restrictions as to
                           disclosure; or

                  iii.     information that DAS or SOUTHERN can establish by
                           reasonable proof was in their possession at the time
                           of disclosure, or was subsequently and independently
                           developed by employees of DAS or SOUTHERN who had no
                           knowledge of the information disclosed; or

                  iv.      information deemed necessary and appropriate by DAS
                           or SOUTHERN to perfect patent rights pursuant to
                           Paragraphs 6 and 7; or

                  v.       information that DAS and SOUTHERN mutually agree in
                           writing to release from the terms of this RESEARCH
                           AGREEMENT; or

                  vi.      information required to be disclosed by order of a
                           court, other governmental body, or other government
                           regulatory agency in the furtherance of the purposes
                           of the Project, after consultation with the party who
                           owns the Information.

[*] CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT
TO THE OMITTED PORTIONS.

                                       7
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            (b) DAS' and SOUTHERN's obligation not to disclose or publish shall
continue for a period of ten (10) years from the date of this RESEARCH
AGREEMENT, at the end of such period the obligation will terminate.

            (c) DAS and SOUTHERN may, in their sole discretion, disclose
necessary or appropriate Information to representatives of one or more of its
subsidiaries (whether directly or indirectly owned) in order for DAS or SOUTHERN
to perform its obligation under this RESEARCH AGREEMENT, provided, however, that
such subsidiary and such representatives shall be bound by the terms and
conditions of this Paragraph 10 that are applicable to DAS and SOUTHERN. Such
obligation not to disclose or publish shall continue in effect for any former
such subsidiary and such representatives of DAS or SOUTHERN.

            (d) DAS and SOUTHERN agree that the Information disclosed will not
be used to provoke an interference with any patent application that the other
party or its employees have filed with respect to Information, and will not be
used to amend any claim in any pending patent application to expand the claim to
read on, cover or dominate any invention (whether or not patentable) disclosed
as Information.

                             LIMITATION OF LIABILITY

         11. Under this RESEARCH AGREEMENT, SOUTHERN is to perform certain
research and other work incidental thereto, and is to provide certain
counseling, advice, conclusions, and/or recommendations. SOUTHERN will use its
professional experience and diligent professional efforts in performing this
work. However, SOUTHERN does not represent, warrant, or guarantee that its
research results or any products produced therefrom are merchantable or
satisfactory for any particular purpose, and there are no warranties, express
or implied, to such effect. DAS hereby agrees to release, waive, and forever
discharge any demands, claims, suits, or actions of any character against
SOUTHERN arising out of or in connection with DAS' acceptance, reliance on, or
use of such results in the absence of any negligent or willful act or omission
by SOUTHERN in the fulfillment of its activities under this RESEARCH AGREEMENT.
In connection with the work performed hereunder, SOUTHERN shall in no event be
responsible or liable in contract or in tort for any special, indirect,
incidental, or consequential damages such as, but not limited to, loss of
product, profits or revenues, damage or loss from operation or nonoperation of
plant, or claims of customers of DAS.

                                 INDEMNIFICATION

         12. DAS hereby agrees to indemnify, hold harmless, and defend SOUTHERN
and its officers, directors, representatives, agents, and employees from and
against any and all demands, claims, suits, or actions of any character
presented or brought on account of any injuries, losses, or damages sustained
by any person or property in consequence of any act or omission of DAS or its
agents, employees, or subcontractors, except for any injuries, losses, or
damages that specifically result from the negligence or willful misconduct of
SOUTHERN, in the performance of the Project and obligations herein and [* * *].
The foregoing indemnity shall include but not be limited to court costs,
attorneys' fees, costs of investigation, costs of defense associated with such
demands, claims, suits, or actions.

[*] CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT
TO THE OMITTED PORTIONS.

                                       8

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         During the time that any product, process, service relating to, or
developed pursuant to this RESEARCH AGREEMENT is introduced into human trials
or is being commercially distributed or sold by DAS or by a licensee,
affiliate or agent of DAS, DAS shall make a good faith effort, at no cost to
SOUTHERN, to procure and maintain [* * *] insurance in reasonable amount in
relation to the nature of the PRODUCT being sold, to the extent that such
insurance is available to DAS at a cost reasonably related to the anticipated
risks and commensurate with DAS's reasonable assessment of the risk and its
ability to respond in damages. Any such [* * *] insurance shall provide (i)
[* * *] and (ii) [* * *]. The amounts provided for by such insurance shall
not be construed to create a [* * *] under this RESEARCH AGREEMENT.

         DAS shall provide SOUTHERN with written evidence of such
insurance or evidence of DAS' attempts to obtain such insurance upon written
request of SOUTHERN and shall give SOUTHERN at least [* * *] notice prior to
cancellation, non-renewal or material change relating to insurance of which DAS
has previously notified SOUTHERN. SOUTHERN agrees that in the event that DAS is
unable to obtain such insurance after a good faith effort on commercially
reasonable rates in accordance with the anticipated risks and DAS' ability to
pay, SOUTHERN will intercede with its insurance carrier to request a waiver or
modification of any requirement for such insurance or to obtain assistance for
DAS to obtain such insurance.

                                  MISCELLANEOUS

     13. (a) ASSIGNMENT. This RESEARCH AGREEMENT and the benefits and
obligations hereunder may not be assigned by a party without the prior written
consent of the other party, except

         i.       to an Affiliate, or

         ii.      in connection with a merger or consolidation of the
                  party in which such party is not the surviving
                  entity, or a sale of all or substantially all of the
                  assets of the party provided that the successor or
                  purchaser agrees to assume all of the obligations of
                  the party hereunder.

In the event of an assignment under Subsection (ii) of this Paragraph 13(a), the
assigning party shall notify the other party in writing of such assignment at
least thirty (30) days in advance of its occurrence.

         (b) ENTIRE AGREEMENT. This RESEARCH AGREEMENT and SOUTHERN's
Proposal set forth and constitute the entire agreement between the parties
hereto with respect to the subject matter hereof, and supersedes any and all
prior agreements, requests for quotation, quotations, purchase orders,
letters of intent and understandings between the parties, and any and all
promises, statements, and representations made by either party to the other
concerning the subject matter hereof and the terms applicable hereto.

         (c) PARTIES INDEPENDENT. In making and performing this RESEARCH
AGREEMENT, the parties are acting and shall act at all times as independent
contractors and

[*] CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT
TO THE OMITTED PORTIONS.

                                       9
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nothing contained in this RESEARCH AGREEMENT shall be construed or implied to
create an agency, partnership, or joint venture relationship between the
parties.

         (d) WAIVERS; AMENDMENTS.

         i.       The failure of either party to insist upon the performance of
                  any of the terms of this RESEARCH AGREEMENT or to exercise
                  any right hereunder or at law or in equity, or any delay by
                  either party in the exercise of any such right, shall not be
                  construed as a waiver or relinquishment of any such
                  performance or right or of the future performance of any such
                  term or the future exercise of such right, and any effective
                  waiver or relinquishment of any such right must be in writing
                  and signed by a duly authorized officer of the party waiving
                  or relinquishing the right or rights. No waiver or
                  relinquishment of any right granted by either party to the
                  other shall be deemed to be a continuing waiver of such right
                  in the future unless otherwise provided in the waiver.

         ii.      This RESEARCH AGREEMENT may not be released,  discharged,
                  amended, or modified in any manner except by an instrument in
                  writing that references this RESEARCH AGREEMENT and is signed
                  by a duly authorized officer of each party.

         (e) FURTHER ASSURANCES. Each of the parties shall execute and
deliver to, or cause to be executed and delivered to, the other party, such
further instruments, or take such other action as may reasonably be requested
of it to consummate more effectively the transactions contemplated hereby.

         (f) NOTICE. Any notice or other written communication required or
permitted to be made or given hereunder may be made or given by either party
to the other party by fax communication to the fax number set forth below and
such notice shall be followed up by depositing the same in the mail,
certified delivery, return receipt requested, postage prepaid, and addressed
to the mailing address set forth below:

         DAS:            Dr. Bertram I. Rowland
                         President and C.E.O.
                         DrugAbuse Sciences, Inc.
                         1420 Southdown Road
                         Hillsborough, CA  94010
                         FAX:  415-548-9258

[*] CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT
TO THE OMITTED PORTIONS.

                                       10

<PAGE>

         SOUTHERN:       Dr. Thomas R. Tice
                         Director, Pharmaceutical
                          Formulations Department
                         Southern Research Institute
                         2000 Ninth Avenue South
                         Birmingham, Alabama  35205
                         FAX:  205-581-2888

         (g) APPLICABLE LAW; DIVISIBILITY. This RESEARCH AGREEMENT is to be
governed by and construed in accordance with the laws of the State of
Alabama, United States of America. If, however, any provision hereof in any
way contravenes the laws of any state or jurisdiction where this RESEARCH
AGREEMENT is to be performed, such provision shall be deemed to be deleted
therefrom, and if any term of this RESEARCH AGREEMENT shall be declared by a
final adjudication to be illegal or contrary to public policy, it shall not
affect the validity of any other terms or provisions of this RESEARCH
AGREEMENT.

         (h) HEADINGS. Descriptive headings used herein are for convenience
only and shall not affect the meaning or construction of any provision hereof.

         (i) TRANSLATIONS. In the event of an inconsistency between any terms
of this RESEARCH AGREEMENT and any translations thereof into another
language, the English language meaning shall control.

         (j) FORCE MAJEURE. The untimely performance of any obligation
arising hereunder by either party will be excused, and such delay of
performance shall not constitute a breach or grounds for termination or
prejudice of any rights hereunder, provided that (a) the delay of performance
is a result of circumstances or occurrences beyond the reasonable control of
the party whose performance is excused hereunder (the "Delaying Event"), and
(b) such party shall (i) immediately resume performance after the Delaying
Event is removed and (ii) be reasonably diligent during such Delaying Event
in avoiding further delay. Without limiting the generality of circumstances
or occurrences that shall constitute a Delaying Event, examples of Delaying
Events include, but are not limited to, strikes, shortages of power or other
utility services, materials or transportation, acts of government or of God,
sabotage, insurrection and civil war. A party whose performance may be
affected by a Delaying Event promptly shall give notice to the other party of
such Delaying Event and the fact that it intends to rely upon such Delaying
Event to excuse its performance under this RESEARCH AGREEMENT.

         (k) AGREEMENT UNDER SEAL. This RESEARCH AGREEMENT is intended to be
under the seal of all parties hereto and to have the effect of a sealed
instrument in accordance with the law.

         (l) COUNTERPARTS. This RESEARCH AGREEMENT may be executed in two or
more counterparts, each of which shall be deemed an original, but all of
which together shall constitute one and the same instrument.

[*] CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT
TO THE OMITTED PORTIONS.

                                       11
<PAGE>

    IN WITNESS WHEREOF, the parties hereto have caused this RESEARCH
AGREEMENT to be duly executed, on the date written above.

SOUTHERN RESEARCH INSTITUTE               DRUG ABUSE SCIENCES, INC.

By:     /s/ G.E. Dwyer                    By:    /s/ Bertram Rowland
     -------------------------------           -------------------------------

Name:  G.E. Dwyer                         Name:  Bertram Rowland
      ------------------------------            ------------------------------

Title:  Chief Executive Officer           Title:  President
       -----------------------------             -----------------------------

[*] CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT
TO THE OMITTED PORTIONS.

                                       12
<PAGE>

                                    EXHIBIT A

                               PRODUCT DESCRIPTION

                                     [* * *]
                 FORMULATION FOR 1-MONTH DELIVERY OF NALTREXONE

[*] CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT
TO THE OMITTED PORTIONS.

                                       13

<PAGE>

                                    EXHIBIT B

                         PATENTS AND PATENT APPLICATIONS

A.  COMPOSITION/METHOD INVENTION PATENT APPLICATIONS

U.S. PATENT NUMBER:   4,897,268

TITLE:         Drug Delivery System and
                   Making the Same

AND ANY U.S. CONTINUATION(S), CONTINUATION(S) IN PART, OR DIVISIONALS

AND ANY FOREIGN COUNTERPART OF THE ABOVE.

B.  PROCESS INVENTION PATENT APPLICATIONS

U.S. PATENT NUMBER:   5,407,609

TITLE:        Improved Encapsulation Process
                  and Products Therefrom

AND ANY U.S. CONTINUATION(S), CONTINUATION(S) IN PART, OR DIVISIONALS

AND ANY FOREIGN COUNTERPART OF THE ABOVE.

[*] CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT
TO THE OMITTED PORTIONS.

                                       14
<PAGE>

                                    EXHIBIT C

                                PROPOSAL P96.417

                          Development of an [* * *]

[*] CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT
TO THE OMITTED PORTIONS.

                                       15
<PAGE>

PROPOSED LICENSE TERMS

GRANT

    The grant shall be a world-wide royalty bearing license under patents,
technology, and knowhow to practice PRODUCT.

ROYALTY

    The royalty shall be in the range of [* * *] of the net sales price,
based on the uniqueness of the PRODUCT, the scope of patent protection, the
payment of other royalties, the size of the market, the extent of anticipated
competition, the competitiveness of the competitive products, the potential
for return on investment for DAS, and such other considerations which are
normally pertinent in the determination of royalty. A reasonable [* * *]
royalty will be included, based on the base royalty, which [* * *] is to
[* * *] from the [* * *].

TERMINATION

    The license shall be terminable at will by DAS, shall automatically
terminate in each jurisdiction in which a licensed patent exists at the
termination of the enforceability of the patent, and shall terminate in all
other jurisdictions 8 years from the first commercial sale, at which time DAS
will have a paid up license in such jurisdiction. Termination shall not
affect those terms which are intended to survive the termination of the
Agreement. SOUTHERN may only terminate for material breach.

OTHER TERMS

    The agreement shall include Alabama as the choice of law, an arbitration
clause, usual reporting and payment of royalty schedule, diligence
requirement, indemnification, and such other terms which are common to a
license.

[*] CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT
TO THE OMITTED PORTIONS.

                                       16<PAGE>

                                                                  EXHIBIT 10.11

                            PRODUCT LICENSE AGREEMENT

                                     Between

                           SOUTHERN RESEARCH INSTITUTE
                             2000 Ninth Avenue South
                            Birmingham, Alabama 35205

                                       and

                            DRUG ABUSE SCIENCES, INC.
                           1430 O'Brien Drive, Suite E
                          Menlo Park, California 94025

<PAGE>

                                TABLE OF CONTENTS
<TABLE>
<CAPTION>
                                                                                                               Page
                                                                                                               ----
<S>                                                                                                           <C>
Section 1.  Definitions...........................................................................................1

Section 2.  License Grants........................................................................................4

Section 3.  Running Royalties.....................................................................................5

Section 4.  Due Diligence in Commercialization....................................................................6

Section 5.  Product Development and Marketing.....................................................................6

Section 6.  Naltrexone Patent Protection..........................................................................6

Section 7.  Enforcement of the Naltrexone Patent..................................................................7

Section 8.  Infringement of Third Party Rights....................................................................7

Section 9.  Representations and Warranties of Southern............................................................8

Section 10.  Negation of Warranties by Southern...................................................................9

Section 11.  Representations and Warranties of DAS................................................................9

Section 12.  Limitation of Liability..............................................................................9

Section 13.  Indemnity...........................................................................................10

Section 14.  Confidentiality.....................................................................................10

Section 15.  Termination.........................................................................................11

Section 16.  General Provisions..................................................................................12

Exhibit A
</TABLE>

                                            i

<PAGE>

          CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED
          AND FILED SEPARATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT
          HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

                            PRODUCT LICENSE AGREEMENT

         THIS PRODUCT LICENSE AGREEMENT (the "Agreement") is hereby made and
entered into as of the first day of July, 1999 by and between SOUTHERN RESEARCH
INSTITUTE, an Alabama non-profit corporation, having an office at 2000 Ninth
Avenue South, Birmingham, Alabama 35205 ("Southern") and DRUG ABUSE SCIENCES,
INC., a California corporation, having an office at 1430 O'Brien Drive, Suite
E, Menlo Park, California 94025 ("DAS").

                                    RECITALS

         WHEREAS, DAS is engaged in the business of discovering, developing,
licensing, manufacturing, marketing and selling pharmaceutical products and all
related activities; and

         WHEREAS, in the course of such business, Southern and DAS have
entered into a research agreement dated February 28, 1997, as amended (the
"Research Agreement"), directed toward the development and evaluation of an
[* * *] for use in the treatment of heroin addicts and alcoholics; and

         WHEREAS, Section l(c) of the Research Agreement grants to DAS an
option (the "Option") to acquire from Southern an exclusive license to such
naltrexone formulation upon reasonable terms and conditions; and

         WHEREAS, DAS desires to exercise such Option and to acquire a license
to such naltrexone formulation; and

         WHEREAS, Southern desires to grant to DAS the desired license, subject
to the terms and conditions of this Agreement; and

         WHEREAS, Southern and DAS desire to set forth in writing the terms and
conditions under which DAS will acquire from Southern the desired license to
the naltrexone formulation.

                                    AGREEMENT

         NOW, THEREFORE, in consideration of the premises set forth above and
the covenants and promises hereinafter set out, DAS and Southern, intending to
be legally bound, hereby agree as follows:

SECTION 1.     DEFINITIONS.

         SECTION 1.1 "AFFILIATES" - means any corporation, company,
partnership, joint venture or other business entity which controls, is
controlled by, or is under common control with DAS. For purposes of this
Section 1.1, "control" means: (a) in the case of a corporation, the direct or
indirect ownership of at least forty percent (40%) of the stock or
participating shares entitled to vote for the election of directors, or (b) in
all other cases, the direct or indirect ownership of at least a forty percent
(40%) profits interest in the business entity.

[*] CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT
TO THE OMITTED PORTIONS.

                                       1

<PAGE>

         SECTION 1.2 "AGREEMENT" means this Product License Agreement entered
into by and between DAS and Southern as of July 1, 1999.

         SECTION 1.3 "AVERAGE ANNUAL RUNNING ROYALTY PAYMENT" means an amount
equal to [* * *] percent ([* * *]) of the average of the annual Running
Royalties paid by DAS to Southern in the first three (3) years after the first
commercial sale of Controlled Release Naltrexone in the United States.

         SECTION 1.4 "BASE ROYALTY PAYMENT" means, for each year during the Term
of this Agreement, the following amount:

<TABLE>
<CAPTION>
                                                              Base Royalty
         Applicable Year                                      Payment Due
         ---------------                                      ------------
      <S>                                                    <C>
         From the Effective Date until
         the [* * *]                                           [* * *]

         For each year thereafter                              [* * *] Payment
</TABLE>

         SECTION 1.5 "CONFIDENTIAL INFORMATION" means any proprietary
information, research project, processes, work in process, future development,
scientific, engineering, manufacturing, marketing, business plan, financial or
personnel matter relating to either DAS or Southern, DAS' present or future
products, sales, supplies, customers, employees, investors or business
including DAS' plans to commercialize Controlled Release Naltrexone and any
other information or biological or chemical materials relating to Controlled
Release Naltrexone, whether in oral, written, graphic or electronic form.

         SECTION 1.6 "CONTROLLED RELEASE NALTREXONE" means [********]

         SECTION 1.7 "EFFECTIVE DATE" means July 1, 1999.

         SECTION 1.8 "FORCE MAJEURE" means with respect to a party, any event
reasonably beyond the control of such party including, but not limited to wars,
hostilities, revolutions, riots, civil commotion, national emergency, strikes,
lockouts, unavailability of supplies, epidemics, fire, flood, earthquake, force
of nature, explosion, embargo, or any other Act of God, or any law,
proclamation, regulation, ordinance, or other act or order of any court,
government or governmental agency.

         SECTION 1.9 "NALTREXONE" means each of [********]

         SECTION 1.10 "NALTREXONE PATENT" means United States Patent
Application Serial No. 60/128,477, filed April 9, l999, and the patent or
patents issued therefrom and includes, without limitation, all substitutions,
divisionals, continuations, continuations-in-part and inventors'

[*] CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT
TO THE OMITTED PORTIONS.

                                       2

<PAGE>

certificates and all foreign counterparts of the foregoing patent or patents
together with all registrations, reissues, reexaminations or extensions of such
patent or patents.

         SECTION 1.11 "NET SALES" means the total of all amounts actually
received by DAS or its Affiliates, for sales of Controlled Release Naltrexone
to independent third-parties (including, but not limited to Sublicensees and
distributors) that, except for the licenses granted by Southern to DAS in
Sections 2.1 and 2.1 of this Agreement, would infringe the Naltrexone Patent or
the Southern Patent Rights, less:

                  (a)      returns, allowances, discounts, commissions, and
adjustments;

                  (b)      packing, handling, transportation, and insurance
charges;

                  (c)      sales, use, excise and similar taxes, duties and
similar governmental assessments imposed on the sale of Controlled Release
Naltrexone; and

                  (d)      the amount of any Running Royalties actually paid by
DAS to a third party to acquire rights to a patent which is materially
necessary in DAS' reasonable judgement, consistent with industry practices, to
commercialize, develop or exploit Control Release Naltrexone.

         SECTION 1.12 "RUNNING ROYALTY" means, for each year during the term of
this Agreement, the following amount:

<TABLE>
<CAPTION>
         Net Sales of Controlled
         Release Naltrexone                 Running Royalty
         -----------------------            ---------------
       <S>                                <C>
         [* * *]                            [* * *] of Net Sales

         [* * *]                            [* * *]  of [* * *]
                                            [* * *]

         [* * *]                            [* * *]  plus  [* * *] of
                                            Net Sales [* * *]
</TABLE>
         SECTION 1.13 "SOUTHERN KNOW-HOW" means any and all inventions (whether
or not patentable), technical information, know-how, processes, procedures,
compositions, devices, methods, techniques, data, information, or physical,
chemical, or biological materials known to or possessed by Southern which are
either covered by the Southern Patents or are reasonably necessary or useful to
enable DAS to commercialize, develop or exploit Controlled Release Naltrexone.

         SECTION 1.14 "SOUTHERN PATENT RIGHTS" means the rights described in the
patents listed on EXHIBIT A to this Agreement and includes, without limitation,
all substitutions, divisionals, continuations, continuations-in-part and
inventors' certificates and all foreign counterparts of the foregoing patents
together with all registrations, reissues, reexaminations or extensions of such
patents.

[*] CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT
TO THE OMITTED PORTIONS.

                                       3

<PAGE>

         SECTION 1.15 "SUBLICENSEE" shall mean any non-Affiliate third party to
whom DAS has granted the right to sell Controlled Release Naltrexone.

         SECTION 1.16 "TERM OF THIS AGREEMENT" means a period beginning on the
Effective Date and ending upon the later of: (1) December 31, 2010, or (2) the
expiration of the last to expire of the Naltrexone Patent(s) or Southern Patent
Rights.

         SECTION 1.17 "THIRD ANNIVERSARY DATE" means the date which is three (3)
years from the date of the first commercial sale of Controlled Release
Naltrexone in the United States.

SECTION 2         LICENSE GRANTS.

         SECTION 2.1 EXCLUSIVE LICENSE. Subject to the terms and conditions of
this Agreement, Southern hereby grants to DAS an exclusive, worldwide license
under the Naltrexone Patent to develop, create, make, have made, use, distribute
and have distributed, sell and have sold, and otherwise exploit for any
commercial purpose Controlled Release Naltrexone.

         SECTION 2.2 NON-EXCLUSIVE LICENSE. Subject to the terms and conditions
of this Agreement including, but not limited to the license granted and
restrictions set forth in Section 2.1, Southern hereby grants to DAS a
non-exclusive, world-wide license to practice the Southern Patent Rights and the
Southern Know-How in conjunction with the commercialization, development or
exploitation of Controlled Release Naltrexone.

         SECTION 2.3 RIGHT TO SUBLICENSE. Subject to the terms and conditions
of this Agreement, Southern hereby grants to DAS the right to sublicense the
right to make, have made, use, sell and have sold Controlled Release
Naltrexone. Any such sublicense shall be granted pursuant to the terms and
conditions of this Agreement. The granting of a sublicense under this Agreement
shall not relieve DAS of its responsibilities for performance hereunder. In the
event that DAS grants a sublicense pursuant to the terms of this Agreement, DAS
shall promptly notify Southern of the grant of said sublicense and shall
provide a copy to Southern within thirty (30) days of the date of its
execution, unless DAS obtains Southern's approval to the contrary, which
Southern will not unreasonably withhold.

         SECTION 2.4 LICENSE TO SOUTHERN. Subject to the terms and conditions
of this Agreement, DAS (on behalf of itself and its Affiliates) hereby grants
to Southern a non-exclusive, royalty-free license to fully exploit for any
purpose any improvements to the Southern Patent Rights that are conceived and
reduced to practice by DAS or its Affiliates during the term of this Agreement
and upon which DAS or any of its Affiliates files an application for letters
patent, and including any letters patent that issue therefrom. DAS hereby
agrees to promptly notify Southern of any and all such improvements.
Prosecution of all such improvements shall be governed by the provisions of
Section 6 of this Agreement. DAS and its Affiliates grant such license on an
"AS IS" basis, and hereby disclaim all warranties, whether express or implied,
relating to the subject matter of this Section 2.4.

[*] CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT
TO THE OMITTED PORTIONS.

                                       4

<PAGE>

SECTION 3.    RUNNING ROYALTIES.

         SECTION 3.1 CALCULATION OF AMOUNT. During each year of the Term of
this Agreement, DAS shall pay to Southern an amount equal to the greater of:
(a) the Running Royalty or (b) the Base Royalty Payment.

         SECTION 3.2 TIMING OF PAYMENTS. Running Royalties shall be paid on a
[* * *]. DAS shall pay interest on any amounts that are not subject to a good
faith dispute between the parties and are not paid to Southern when due under
this Section 3.2 at the rate of [* * *] as set by AmSouth Bank, Birmingham,
Alabama per annum. DAS shall also pay to Southern all reasonable out-of-pocket
expenses actually incurred by Southern in the course of collecting amounts past
due under this section, including reasonable attorneys' fees, whether or not
any suit was commenced by Southern against DAS.

         SECTION 3.3 RUNNING ROYALTY REPORTS. With each quarterly Running
Royalty payment due to Southern under Section 3.1, DAS shall deliver to
Southern a true and accurate report, giving such particulars of the business
conducted by DAS, its Affiliates and Sublicensees, if any, during such calendar
quarter as are pertinent to account for Running Royalties due under Section 3.1
of this Agreement. Such report shall include at least (i) the total of Net
Sales during such quarter, (ii) the calculation of Running Royalties, and (iii)
the total Running Royalties so calculated and due Southern. If no royalties are
due, DAS shall so report. Southern shall not provide to third parties any
information contained in reports provided by DAS under this Section 3.3.

         SECTION 3.4 BOOKS AND RECORDS. DAS shall keep and maintain complete
and accurate accounting records containing such information as is reasonably
necessary to enable verification of the Running Royalties accrued and payable
to Southern by DAS under the terms of this Agreement. Upon the written request
of Southern and not more than once in each calendar year, DAS shall permit an
independent, certified public accounting firm of nationally recognized standing
selected by Southern and reasonably acceptable to DAS, at Southern's expense,
to have access during normal business hours to those records of DAS as may be
reasonably necessary to verify the accuracy of the royalty reports hereunder
for any year ending not more than [* * *] of such request. The accounting firm
shall disclose to DAS and Southern the extent of any discrepancies and the
basis for such determination. An adjusting payment shall be made upon
demonstration of any underpayment. Such payment shall be made in accordance
with the provisions of Section 3.2 of this Agreement.

         SECTION 3.5 EXPENSE OF AUDITS. The fees and expenses of the accounting
firm associated with Southern's request for an audit pursuant to Section 3.4
shall be borne by Southern; provided, however, that if any audit shall
correctly show that DAS underpaid the Running Royalties due to Southern under
this Agreement for the period being audited by more [* * *] that was payable
for such period, then DAS shall, in addition to paying Southern any such
deficiency, reimburse Southern for the out-of-pocket costs of such audit.

[*] CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT
TO THE OMITTED PORTIONS.

                                       5

<PAGE>

SECTION 4.        DUE DILIGENCE IN COMMERCIALIZATION.

                  4.1 OBLIGATION TO EXPLOIT. DAS shall use commercially
reasonable efforts to bring Control Release Naltrexone to market and to meet
the market demand therefor.

                  4.2 COMMERCIALIZATION MILESTONE. Southern shall have the
option to terminate this Agreement in the event that DAS is unable to file a
new drug application for a Controlled Release Naltrexone formulation with the
United States Food and Drug Administration by the fifth anniversary of the
Effective Date, unless a Force Majeure occurs during such period, in which case
the period of time to file such application shall be extended for a reasonable
period of time to be mutually agreed upon by the parties.

SECTION 5.        PRODUCT DEVELOPMENT AND MARKETING.

         SECTION 5.1 CLINICAL TRIALS. DAS shall be responsible for preparation
and prosecution of any regulatory filings required in order to conduct clinical
trials on Controlled Release Naltrexone. DAS shall be the owner of record for
all such regulatory filings.

         SECTION 5.2 MARKETING OF CONTROLLED RELEASE NALTREXONE. DAS shall be
responsible for the preparation and prosecution of suitable applications and
submissions for marketing approval of Controlled Release Naltrexone and shall
be the owner and party of record of all such applications and regulatory
filings.

         SECTION 5.3 COOPERATION AND ASSISTANCE BY SOUTHERN. Southern will,
subject to payment by DAS of its reasonable expenses, exercise commercially
reasonable efforts to assist DAS in obtaining the regulatory licenses and
approvals referred to in Sections 5.1 and 5.2 of this Agreement, and will
provide and execute all documents DAS may reasonably request for any of the
foregoing purposes. Southern hereby irrevocably designates and appoints DAS and
its duly authorized officers and agents, with full power of substitution, as
Southern's agents and attorneys-in-fact to act for and in Southern's behalf and
instead of Southern, to execute and file any such document and to do all other
lawfully permitted acts to further the purposes of the foregoing with the same
legal force and effect as if executed by Southern.

SECTION 6.      NALTREXONE PATENT PROTECTION.

         SECTION 6.1 PATENT PROSECUTION. DAS will be responsible for the
filing, prosecution and maintenance of the Naltrexone Patent. Preparation,
filing, prosecution, and maintenance of the Naltrexone Patent shall be solely
at DAS' expense. DAS shall provide Southern with a reasonable period of time to
review patent applications prepared by DAS for the Naltrexone Patent.

         SECTION 6.2 TERMINATION OF PROSECUTION. DAS' obligation to underwrite
and pay patent costs pursuant to this Section 6 shall continue for the Term of
this Agreement; provided, however, that DAS may terminate its obligations with
respect to any given patent application or patent upon three (3) months written
notice to Southern. Southern may then continue prosecution and/or maintenance
of such application(s) or patent(s) at its sole discretion and expense. In the
event that Southern decides to continue prosecution and/or maintenance of any
such application or patent, DAS shall have no further rights to any invention
claimed therein.

[*] CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT
TO THE OMITTED PORTIONS.

                                       6

<PAGE>

SECTION 7.    ENFORCEMENT OF THE NALTREXONE PATENT

         SECTION 7.1  INFRINGEMENT ACTIONS. DAS will have the right to enforce
the Naltrexone Patent against third-party infringement. Any such infringement
action initiated by DAS shall be prosecuted in its own name and at its own
expense. Southern shall cooperate fully with DAS in connection with any such
action. Southern agrees to notify DAS promptly of any infringement of the
Naltrexone Patent of which Southern is or becomes aware.

         SECTION 7.2  ASSIGNMENT OF PATENT RIGHTS. If DAS elects to commence an
action pursuant to the authority granted it in Section 7.1 above, Southern shall
have the right, without an obligation by DAS to pay any consideration other than
as expressly required by this Agreement, to assign to DAS all of Southern's
rights, title and interest in the Naltrexone Patent. In the event that Southern
makes such an assignment, such assignment shall be irrevocable and shall allow
DAS to proceed on any such action without Southern as a party. If Southern
assigns the Naltrexone Patent to DAS pursuant to this Section 7.2, such
assignment shall require DAS to continue to meet DAS' obligations under this
Agreement as if the assigned patent were still licensed to DAS. In the event
that the Naltrexone Patent is not assigned to DAS and DAS commences an
infringement action, Southern shall cooperate fully with DAS in connection with
any such action, which may include, at the reasonable discretion of DAS, being
named as a party and participating in such action at DAS' expense.

         SECTION 7.3  DISTRIBUTION OF PROCEEDS. Any recoveries or reimbursements
from any infringement action brought by DAS pursuant to Section 7.1 shall first
be applied to reimburse DAS and Southern for all reasonable out-of-pocket
litigation expenses actually incurred by DAS and Southern in the course of
participating in such action. Any funds remaining after reimbursement of DAS and
Southern for such expenses shall be treated as Net Sales of Controlled Release
Naltrexone for purposes of Sections 1.11 and 3.1 of this Agreement.

         SECTION 7.4  ALTERNATIVE ENFORCEMENT. In the event that DAS elects in
writing not to exercise its right to prosecute any infringement of the
Naltrexone Patent, Southern may elect to prosecute such infringement at its own
expense, controlling such action and retaining all recoveries therefrom.

SECTION 8.    INFRINGEMENT OF THIRD PARTY RIGHTS.

         SECTION 8.1  NOTICE. If the development, manufacture, use or sale of
Controlled Release Naltrexone results in a claim of patent infringement or trade
secret misappropriation, the party to this Agreement first having notice shall
promptly notify the other party in writing. The notice shall set forth the facts
of the claim in reasonable detail.

         SECTION 8.2  DEFENSE BY DAS. DAS shall defend against any such third
party claim which is based on the development, manufacture, use or sale of
Controlled Release Naltrexone. Southern shall cooperate with DAS in such defense
and shall tender to DAS the authority to control and/or settle such claim, but
Southern shall have the right to be represented by counsel of its own choice and
at its own expense. If DAS is required by a final court order to make a payment
including Running Royalty payments on Net Sales of Controlled Release Naltrexone
by

[*] CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT
TO THE OMITTED PORTIONS.

                                       7
<PAGE>

DAS to a third party in connection with the disposition of such claim, DAS
shall be responsible for such payments.

         SECTION 8.3  DEFENSE BY SOUTHERN. Southern shall defend against any
such third party claim which is based on DAS' use of the Southern Patent
Rights or Southern Know-How to commercialize Control Release Naltrexone. DAS
shall cooperate with Southern in such defense and shall tender to Southern
the authority to control and/or settle such claim, but DAS shall have the
right to be represented by counsel of its own choice and at its own expense.
If Southern is required by a final court order to make a payment including
Running Royalty payments on Net Sales of Controlled Release Naltrexone by DAS
to a third party in connection with the disposition of such claim, Southern
shall be responsible for such payments.

SECTION 9.    REPRESENTATIONS AND WARRANTIES OF SOUTHERN. This Agreement is
made with Southern in reliance upon Southern's representations and warranties to
DAS, which by Southern's execution of this Agreement, Southern hereby confirms
as follows:

         SECTION 9.1       INTELLECTUAL PROPERTY.   Southern:

         (i) is the sole owner of all rights, title and interest in the
Naltrexone Patent and the Southern Patent Rights and Southern Know-How;

         (ii) has not assigned, transferred, licensed, pledged or otherwise
encumbered the Naltrexone Patent;

         (iii) has full power and authority to enter into this Agreement and to
grant the licenses set forth in Section 2 of this Agreement; and

         (iv) except as previously disclosed to DAS in writing, is not aware of
any questions or challenges with respect to the validity of any claims of the
Naltrexone Patent and the Southern Patents.

         SECTION 9.2       AUTHORITY; NO CONFLICT.

                  (a) This Agreement constitutes the legal, valid, and binding
obligation of Southern, enforceable against Southern in accordance with its
terms. Southern has the absolute and unrestricted right, power, authority, and
capacity to execute and deliver this Agreement and to perform its obligations
under this Agreement.

                  (b) The execution and delivery of this Agreement will not
directly or indirectly (with or without notice or lapse of time):

                           (i)      contravene, conflict with, or result in a
                                    violation of (A) any provision of the
                                    organizational documents of Southern, or (B)
                                    any resolution adopted by the board of
                                    directors of Southern; or

                           (ii)     contravene, conflict with, or result in a
                                    violation or breach of any provision of, or
                                    give any person the right to declare a
                                    default or exercise any remedy under, or to
                                    accelerate the maturity or

[*] CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT
TO THE OMITTED PORTIONS.

                                       8

<PAGE>
                                    performance of, or to cancel, terminate, or
                                    modify, any material agreement to which
                                    Southern is bound.

Southern is not and or will not be required to give any notice to or obtain any
consent from any person in connection with the execution and delivery of this
Agreement.

SECTION 10.    NEGATION OF WARRANTIES BY SOUTHERN. Except as specifically set
forth in Section 9 of this Agreement, Southern hereby specifically disclaims all
other warranties, either express or implied, with respect to Controlled Release
Naltrexone, including, without limitation, warranties of merchantability and
fitness for a particular purpose.

SECTION 11.    REPRESENTATIONS AND WARRANTIES OF DAS. DAS represents and
warranties to Southern as follows:

         SECTION 11.1      ORGANIZATION AND GOOD STANDING.

         DAS is a corporation duly organized, validly existing, and in good
standing under the laws of the State of California, with full corporate power
and authority to conduct its business as it is now being conducted, to own or
use the properties and assets that it purports to own or use, and to perform all
its obligations under this Agreement.

         SECTION 11.2      AUTHORITY; NO CONFLICT.

                  (a) This Agreement constitutes the legal, valid, and binding
obligation of DAS, enforceable against DAS in accordance with its terms. DAS has
the absolute and unrestricted right, power, authority, and capacity to execute
and deliver this Agreement and to perform its obligations under this Agreement.

                  (b) The execution and delivery of this Agreement will not
directly or indirectly (with or without notice or lapse of time):

                           (i)      contravene, conflict with, or result in a
                                    violation of (A) any provision of the
                                    organizational documents of DAS, or (B) any
                                    resolution adopted by the board of directors
                                    or the stockholders of DAS; or

                           (ii)     contravene, conflict with, or result in a
                                    violation or breach of any provision of, or
                                    give any person the right to declare a
                                    default or exercise any remedy under, or to
                                    accelerate the maturity or performance of,
                                    or to cancel, terminate, or modify, any
                                    material agreement to which DAS is bound.

DAS is not and or will not be required to give any notice to or obtain any
consent from any person in connection with the execution and delivery of this
Agreement.

SECTION 12.    LIMITATION OF LIABILITY. DAS hereby agrees to release, waive,
and forever discharge any demands, claims, suits, or actions of any character
against Southern arising out of or in connection with DAS' commercialization of
Controlled Release Naltrexone in the absence

[*] CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT
TO THE OMITTED PORTIONS.

                                       9

<PAGE>

of any negligent or willful act or omission by Southern in the fulfillment of
its obligations under this Agreement.

         In no event shall either party be responsible or liable with respect to
any subject matter of this Agreement under contract, tort, strict liability or
other legal theory, for any special, indirect, incidental, or consequential
damages such as, but not limited to, loss of product, profits or revenues,
damage or loss from operation or non-operation of plant, or claims of customers.

SECTION 13.    INDEMNITY. Subject to the terms of this paragraph, DAS hereby
agrees to indemnify, hold harmless, and defend Southern and its officers,
directors, representatives, agents, and employees from and against any and all
demands, claims, suits, or actions of any character (a "claim") presented or
brought on account of any injuries, losses, or damages sustained by any person
or property in consequence of any negligent act or omission of DAS or its
agents, employees, or subcontractors relating to Controlled Release Naltrexone,
except for any injuries, losses, or damages that specifically result from the
negligence or willful misconduct of Southern, in the performance of the
obligations imposed herein. DAS' obligations hereunder are subject to Southern
(i) cooperating with DAS in such defense at DAS' expense, (ii) tendering to DAS
the authority to control and/or settle such claim (but Southern shall have the
right to by represented by counsel of its own choice and at its own expense),
and (iii) notifying DAS in writing within 15 days of first becoming aware of any
such claim, unless DAS is not prejudiced by later notification. The foregoing
indemnity shall include but not be limited to court costs, attorneys' fees,
costs of investigation, costs of defense associated with such demands, claims,
suits, or actions. DAS will include [* * *].

         During the time that Controlled Release Naltrexone is introduced
into human trials or is being commercially distributed or sold by DAS or by a
Sub-licensee, Affiliate or agent of DAS, DAS shall make a good faith effort,
at no cost to Southern, to procure and maintain [* * *]insurance in
reasonable amount in relation to the nature of Controlled Release Naltrexone,
to the extent that such insurance is available to DAS at a cost reasonably
related to the anticipated risks and commensurate with DAS' reasonable
assessment of the risk and its ability to respond to damages. Any such [* * *]
insurance shall provide (i) [* * *] (ii) [* * *]. The amounts provided for by
such insurance [* * *].

         DAS shall provide Southern with written evidence of such insurance or
evidence of DAS' attempts to obtain such insurance upon written request of
Southern and shall give Southern at least thirty (30) days notice prior to
cancellation, non-renewal or material change relating to insurance of which DAS
has previously notified Southern.

SECTION 14.    CONFIDENTIALITY.

         SECTION 14.1  CONFIDENTIALITY OBLIGATION. During the Term of this
Agreement and for a period of five years thereafter, DAS and Southern shall
maintain in confidence all Confidential Information disclosed to it by the other
party. Neither DAS nor Southern will use, disclose or grant the use of such
Confidential Information except as expressly authorized by this Agreement. To
the extent that disclosure is authorized by this Agreement, the disclosing party
will obtain prior agreement from the party to whom disclosure is to be made, to
hold in confidence and not

[*] CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT
TO THE OMITTED PORTIONS.

                                       10

<PAGE>

make use of such information for any purposes other than those permitted by
this Agreement. Each party will use at least the same standard of care as it
uses to protect its own proprietary and trade secret information to insure
that such employees, agents, consultants and investigators do not disclose or
make any unauthorized use of such Confidential Information. Each party will
promptly notify the other upon discovery of any unauthorized use or
disclosure of the Confidential Information.

         SECTION 14.2  EXCEPTIONS. The obligations of confidentiality contained
in Section 14.1 will not apply to the extent that it can be established by the
receiving party by competent proof that such Confidential Information:

                  (a) was already known to the receiving party, other than under
an obligation of confidentiality, at the time of disclosure by the other party;

                  (b) was generally available to the public or otherwise part of
the public domain at the time of its disclosure by the other party;

                  (c) became generally available to the public or otherwise part
of the public domain after its disclosure and other than through any act or
omission of the receiving party in breach of this Agreement; or

                  (d) was disclosed to the receiving party, other than under an
obligation of confidentiality, by a third-party lawfully in possession of the
information.

         SECTION 14.3  AUTHORIZED DISCLOSURE. Each party may disclose the
Confidential Information to the extent such disclosure is reasonably necessary
in filing or prosecuting patent applications, prosecuting or defending
litigation, complying with applicable governmental laws or regulations, or
reasonably required by investors, potential vendors and potential sources of
financing, provided that if such party is required to make any such disclosure
of the Confidential Information it will to the extent commercially practicable
give reasonable advance notice to the other party of such disclosure requirement
and, except to the extent inappropriate in the case of patent applications, will
use all diligent efforts to secure confidential treatment of such information
required to be disclosed to government authorities or by court order.

SECTION 15.    TERMINATION.

         SECTION 15.1      TERMINATION BY SOUTHERN.   If DAS:

                  (a) Commits a breach of any of the material provisions of this
Agreement which is not cured by DAS within ninety (90) days of the date on which
Southern provides written notice to DAS of such breach; or

                  (b) Commences or has commenced against it any proceeding under
the Federal Bankruptcy Code, or any state law concerning creditor relief,
assignment for benefit of creditors, or appointment of a receiver, which
proceeding is not dismissed within 90 days of the date of commencement,

[*] CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT
TO THE OMITTED PORTIONS.

                                       11

<PAGE>

then Southern, to the extent permitted by law, shall have the right, at
Southern's sole election, to declare the exclusive licenses granted to DAS in
Section 2 of this Agreement terminated or to convert such licenses to
non-exclusive, such termination or conversion to be effective immediately upon
such declaration by Southern.

         SECTION 15.2  TERMINATION BY DAS. DAS shall have the right to
terminate this Agreement upon ninety (90) days written notice to Southern.

         SECTION 15.3  CONSEQUENCES OF TERMINATION. If termination of this
Agreement occurs, all rights licensed to DAS hereunder shall revert to
Southern and neither party shall have any obligations to the other party,
except for accrued obligations to pay earned Running Royalties and other
obligations hereof that expressly by their terms survive termination;
provided, however, that in no event will DAS or any sublicensee, transferee
or assignee be precluded from disposing of its inventory or meeting its then
existing supply obligations. Notwithstanding anything to the contrary, the
following Sections shall survive termination: 8 - 14 and 16.

SECTION 16     GENERAL PROVISIONS.

         SECTION 16.1  GOVERNING LAW. This Agreement shall be governed by the
internal laws of the State of Alabama.

         SECTION 16.2  ENTIRE AGREEMENT; AMENDMENTS. This Agreement, together
with the Research Agreement represent the entire agreement between the parties
with respect to the subject matter hereof. This Agreement may only be modified
or amended in writing signed by both parties. In the event of a conflict with
respect to the licenses granted in this Agreement, the terms of this Agreement
shall prevail over the Research Agreement.

         SECTION 16.3  NOTICES. Notices, payments, statements, reports and other
communications under this Agreement shall be in writing and shall be effective
on receipt if addressed as follows:

                  If for Southern:

                           Southern Research Institute
                           200 Ninth Avenue South
                           Birmingham, Alabama 35205
                           Athn: David W. Mason
                           Telephone: (205) 581-2389
                           Facsimile: (205) 581-2618

[*] CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT
TO THE OMITTED PORTIONS.

                                       12

<PAGE>

                  If for DAS:

                           Drug Abuse Sciences, Inc.
                           1430 O'Brien Drive, Suite E
                           Menlo Park, California 94025
                           Attn: Chief Executive Officer
                           Telephone: 650-426-1000
                           Fax: 650-462-1003

Either party may change its official address upon written notice to the other
party.

         SECTION 16.4  NO WAIVER. Either party's failure to enforce any
provision or provisions of this Agreement shall not in any way be construed
as a waiver of any such provision or provisions, nor prevent that party
thereafter from enforcing each and every other provision of this Agreement.
The rights granted both parties herein are cumulative and shall not
constitute a waiver of either party's right to assert all other legal
remedies available to it under the circumstances.

         SECTION 16.5  ASSIGNMENT. This Agreement may not be assigned or
otherwise transferred, nor, except as expressly provided hereunder, may any
right or obligation hereunder be assigned or transferred, by DAS without the
written consent of Southern; provided, however, that DAS may, without such
consent, assign this Agreement and its rights and obligations hereunder (a) in
connection with the transfer or sale of all or substantially all of DAS'
business, if such assets include substantially all of the assets relating to
DAS' performance of its obligations hereunder, (b) to a wholly-owned subsidiary
of DAS or one of its Affiliates or, (c) in the event of DAS' merger or
consolidation with another company at any time during the term of this
Agreement. Any purported assignment in violation of this Section 16.5 shall be
void. Any permitted assignee shall assume all obligations of its assignor under
this Agreement.

         SECTION 16.6  TITLES AND SUBTITLES. The titles and subtitles used in
this Agreement are used for convenience only and are not to be considered in
construing or interpreting this Agreement.

         SECTION 16.7  COUNTERPARTS. This Agreement may be executed in two or
more counterparts, each of which together shall be deemed an original, but all
of which together shall constitute one and the same instrument.

         SECTION 16.8  DISPUTE RESOLUTION. If a dispute arises between the
parties relating to the interpretation or performance of this Agreement, the
parties agree to hold a meeting, attended by individuals with decision-making
authority regarding the dispute, to attempt in good faith to negotiate a
resolution of the dispute prior to pursuing other available remedies. If, within
30 days after such meeting, unless extended by mutual consent, the parties have
not succeeded in negotiating a resolution of the dispute, the parties agree to
hold another meeting, attended by individuals holding at least vice presidential
offices within their respective organizations, to again attempt in good faith to
negotiate a resolution of the dispute. If, within 30 days after such meeting,
unless extended by mutual consent, the parties have not succeeded in negotiating
a resolution of the dispute, such dispute shall be submitted to final and
binding arbitration under

[*] CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT
TO THE OMITTED PORTIONS.

                                       13

<PAGE>

the then current Licensing Agreement Arbitration Rules of the American
Arbitration Association ("AAA"), with a panel of three arbitrators in New
York, New York. Such arbitrators shall be selected by mutual agreement of the
parties or, failing such agreement, shall be selected according to the
aforesaid AAA rules. The parties shall bear the costs of arbitration equally
unless the arbitrators, pursuant to their right, but not their obligation,
require the non-prevailing party to bear all or any unequal portion of the
prevailing party's costs. The decision of the arbitrators shall be final and
may be sued on or enforced by the party in whose favor it runs in any court
of competent jurisdiction at the option of the successful party. The
arbitrators will be instructed to prepare and deliver a written, reasoned
opinion conferring their decision. The rights and obligations of the parties
to arbitrate any dispute relating to the interpretation or performance of
this Agreement or the grounds for the termination thereof shall survive the
expiration or termination of this Agreement for any reason.

         SECTION 16.9  FURTHER ASSURANCES. The parties agree (a) to furnish
upon request to each other such further information, (b) to execute and
deliver to each other such other documents, and (c) to do such other acts and
things, all as the other party may reasonably request for the purpose of
carrying out the intent of this Agreement.

         SECTION 16.10  SEVERABILITY. If any provision of this Agreement is
held invalid or unenforceable by any court of competent jurisdiction, the
other provisions of this Agreement will remain in full force and effect. Any
provision of this Agreement held invalid or unenforceable only in part or
degree will remain in full force and effect to the extent not held invalid or
unenforceable.

         SECTION 16.11 PUBLICITY. Except as required by law and in connection
with obtaining company financing, nothing contained in this Agreement shall be
construed as conferring any right to use in advertising, publicity, or other
promotional activities any name, trade name, trademark, or other designation of
Southern (including contraction, abbreviation or simulation of any of the
foregoing) without prior written approval.

[*] CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT
TO THE OMITTED PORTIONS.

                                       14

<PAGE>

         IN WITNESS WHEREOF, the parties hereto have executed this Agreement on
the date first above stated.

SOUTHERN RESEARCH INSTITUTE               DRUG ABUSE SCIENCES, INC.

By:     /s/ David W. Mason                By:    /s/ Stanley A. Kaplan
    --------------------------------          -------------------------------
        David Mason                              Stanley A. Kaplan
        Its: Assistant Secretary                 Its: Chief Executive Officer

[*] CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT
TO THE OMITTED PORTIONS.

                                       15

<PAGE>

                                    EXHIBIT A

                             SOUTHERN PATENT RIGHTS

<TABLE>
<CAPTION>
------------------------------- -------------- ---------------- ---------------- ---------------- --------------------
           COUNTRY                SERIAL            FILING          PATENT            PATENT          DUE DATES/
                                    NO.              DATE             NO.              DATE            STATUS
------------------------------- -------------- ---------------- ---------------- ---------------- --------------------
                                                 U.S. APPLICATIONS
------------------------------- ---------------- -------------- ---------------- ---------------- --------------------
<S>                             <C>              <C>            <C>              <C>              <C>
U.S.A.                          08/062,696       5/17/93        5,407,609        4/18/95          Issued; Current
                                                                                 (expires
                                                                                 4/18/12)
------------------------------- ---------------- -------------- ---------------- ---------------- --------------------
PCT (designating Austria,       PCT/US           5/2/90                -                -         Published
Australia, Barbados,            9010/2439                                                         11/15/90;
Bulgaria, Brazil, Canada,                                                                         Inactive.
Switzerland, Liechtenstein,
Germany, Denmark, Spain,
Finland, U.K., Hungary,
Japan, North Korea, South
Korea, SRI Lanka, Luxembourg,
Monaco, Madagascar, Malawi,
Netherlands, Norway, Romania,
Sudan, Sweden, Russian
Federation, EP; OAPI)
------------------------------- ---------------- -------------- ---------------- ---------------- --------------------
Austria                         9008830.4        5/02/90        0471036          01/17/96         Issued; Current.
                                                                                 (expires
                                                                                 5/02/10)
------------------------------- ---------------- -------------- ---------------- ---------------- --------------------
Belgium                         90908830.4       5/02/90        0471036          1/17/96          Issued; Current.
                                                                                 (expires
                                                                                 5/2/10)
------------------------------- ---------------- -------------- ---------------- ---------------- --------------------
Canada                          2,050,911         5/02/90       2,050,911         7/15/97         Issued; Current.
(Nat'l Phase of PCT)                             (9/30/91-Nat'l                  (expires
                                                 Phase)                          5/22/10)
------------------------------- ---------------- -------------- ---------------- ---------------- --------------------
Switzerland                     90908830.4       5/02/90        0471036          1/17/96          Issued; Current.
                                                                                 (expires
                                                                                 5/2/10)
------------------------------- ---------------- -------------- ---------------- ---------------- --------------------
Germany                         909088304        5/02/90        0471036          1/17/96          Issued; Current.
                                                                                 (expires
                                                                                 5/2/10)
------------------------------- ---------------- -------------- ---------------- ---------------- --------------------
EP                90908830.4     5/02/90                                                          Granted -
(Nat'l Phade of PCT)             (9/25/91-EP                                                      National Phase
                                 Nat'l Phase)                                                     applications filed
                                                                                                  in Austria,
                                                                                                  Belgium,
                                                                                                  Switzerland,
                                                                                                  Germany, Denmark,
                                                                                                  Spain, France, United
                                                                                                  Kingdom, Italy,
                                                                                                  Leichtenstein,
                                                                                                  Luxembourg,
                                                                                                  Netherlands and
                                                                                                  Sweden.
------------------------------- ---------------- -------------- ---------------- ---------------- --------------------

[*] CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT
TO THE OMITTED PORTIONS.

                                       16
<PAGE>

------------------------------- ---------------- -------------- ---------------- ---------------- --------------------
Spain                           90908830.4       5/02/90        4071036          1/17/96          Issued; Current.
                                                                                 (expires
                                                                                 5/02/10)
------------------------------- ---------------- -------------- ---------------- ---------------- --------------------
Finland                         915129            5/2/90                                          Revised claims
(Nat'l Phase of PCT)                              (10/30/91-                                      filed 3/29/92.
                                                  Nat'l Phase)                                    Office Action
                                                                                                  received.
                                                                                                  Response to office
                                                                                                  action filed
                                                                                                  5/23/96.
------------------------------- ---------------- -------------- ---------------- ---------------- --------------------
France                          90908830.4       5/02/90        0471036          1/17/96          Issued; Current.
                                                                                 (expires
                                                                                 5/02/10)
------------------------------- ---------------- -------------- ---------------- ---------------- --------------------
Great Britain                   90908830.4       5/02/90        0471036          1/17/96          Issued; Current.
                                                                                 (expires
                                                                                 5/02/10)
------------------------------- ---------------- -------------- ---------------- ---------------- --------------------
Italy                           90908830.4       5/02/90        0471036          1/17/96          Issued; Current.
                                                                                 (expires
                                                                                 5/02/10)
------------------------------- ---------------- -------------- ---------------- ---------------- --------------------
Japan                           508473/90        5/02/90        2582116          11/21/96         Issued; Current.
(Nat'l Phase of PCT)                             (11/15/91-                      (expires
                                                 Nat'l Phase)                    5/02/10)
------------------------------- ---------------- -------------- ---------------- ---------------- --------------------
South Korea                     91-701573        5/02/90        162669           9/01/98          Issued; Current.
(Nat'l Phase of PCT)                             (10/31/91-                      (expires
                                                 Nat'l Phase)                    0/01/13)
------------------------------- ---------------- -------------- ---------------- ---------------- --------------------
Luxembourg                      90908830.4       5/02/90        0471016          1/17/96          Issued; Current.
                                                                                 (expires
                                                                                 5/02/10)
------------------------------- ---------------- -------------- ---------------- ---------------- --------------------
Hong Kong                       90908830.4       5/03/90        0,471,836        1/17/96          Issued; Current.
                                (EP)                            (HK          #
                                                                308/1997)
------------------------------- ---------------- -------------- ---------------- ---------------- --------------------
Singapore                       90908830.4       5/02/90        0471036          1/17/96          Issued; Current.
                                (EP) 0471036                    (EP)             (expires
                                (SG)                            97909105         5/02/10)
                                                                (SG)
------------------------------- ---------------- -------------- ---------------- ---------------- --------------------
Netherlands                     90908810.4       5/02/90        0471036          1/17/96          Issued; Current.
                                                                                 (expires
                                                                                 5/02/10)
------------------------------- ---------------- -------------- ---------------- ---------------- --------------------
Norway                          91.4292          5/2/90         302.683          4/14/98          Issued; Current.
(Nat'l Phase of PCT)                             (11/1/91-                       (expires
                                                 Nat'l Phase)                    5/02/10)
------------------------------- ---------------- -------------- ---------------- ---------------- --------------------
Sweden                          90908830.4       5/02/90        0471036          1/17/96          Issued; Current.
                                                                                 (expires
                                                                                 5/02/10)
----------------------------------------------------------------------------------------------------------------------
                         NON-PCT CONVENTION APPLICATIONS
----------------------------------------------------------------------------------------------------------------------
China                           90194260.9       5/04/90               -                -         Application
                                                                                                  withdrawn 11/91
                                                                                                  per instructions
                                                                                                  from SRI.
------------------------------- ---------------- -------------- ---------------- ---------------- --------------------
Greece                          90.01.00330      5/03/90        1000614          3/04/92          Issued; Current.
                                                                                 (expires
                                                                                 5/03/10)
------------------------------- ---------------- -------------- ---------------- ---------------- --------------------
Ireland                         1616/90          5/03/90        09313            8/12/96          Issued; Current.

[*] CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT
TO THE OMITTED PORTIONS.

                                       17

<PAGE>

                                                                                 (expires
                                                                                 5/03/10)
------------------------------- ---------------- -------------- ---------------- ---------------- --------------------
Israel                          347476           5/04/90        94296            2/01/96          Issued; Current.
                                                                                 (expires
                                                                                 5/04/10)
------------------------------- ---------------- -------------- ---------------- ---------------- --------------------
New Zealand                     233570           5/04/90        233570           5/04/90          Issued; Current.
                                                                                 (expires
                                                                                 5/04/10)
------------------------------- ---------------- -------------- ---------------- ---------------- --------------------
South Africa                    90/3411          5/04/90        90/3411          2/27/91          Issued; Current.
                                                                                 (expires
                                                                                 5/04/10)
------------------------------- ---------------- -------------- ---------------- ---------------- --------------------
India                           341/MAS/ 90      5/04/90        173577           1/06/95          Inactive.
                                                                                 (expires
                                                                                 5/04/97)
------------------------------- ---------------- -------------- ---------------- ---------------- --------------------
Taiwan                          79103694         5/07/90        50062            7/11/91          Issued; Current.
                                                                                 (expires
                                                                                 7/11/06)
------------------------------- ---------------- -------------- ---------------- ---------------- --------------------
</TABLE>

[*] CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT
TO THE OMITTED PORTIONS.

                                       18

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