Document:

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                                                                    EXHIBIT 10.2

                                                                  EXECUTION COPY

                   VITAL LIVING REGISTRATION RIGHTS AGREEMENT

This Registration Rights Agreement (the "Agreement"), dated as of August 20,
2003, is between SkyePharma PLC, a company incorporated under the laws of
England and Wales (the "Holder") and Vital Living, Inc., a Nevada corporation
(the "Corporation").

         WHEREAS, the Holder will acquire 14,204,548 shares of the Corporation's
common stock, par value $0.001 (the "Shares") pursuant to the terms of that
certain Merger Agreement (the "Merger Agreement" and the Shares issued thereby,
the "Merger Shares"), dated August 20, 2003, by and between the Corporation,
VLEN Acquisition Corp., Inc., a wholly owned subsidiary of the Corporation, and
e-nutriceuticals, inc., a Delaware corporation.

         WHEREAS the Holder will acquire additional Shares (together with the
Merger Shares, the "Subject Shares") upon conversion of shares of preferred
stock of the Corporation to be issued to the Holder pursuant to a Subscription
Agreement, dated August 20, 2003 by and between the Holder and the Corporation
(the "Subscription Agreement");

         NOW THEREFORE, in consideration of mutual covenants, obligations and
agreements contained herein, in the Merger Agreement and in the Subscription
Agreement, and intending to be legally bound hereby, the parties hereto agree as
follows:

Section 1. Definitions. Except as otherwise specified herein, defined terms used
in this Agreement shall have the respective meanings assigned to such terms in
the Merger Agreement. Unless otherwise specified all references to "days" shall
be deemed to be references to calendar days. For purposes of this Agreement the
following terms shall have the following meanings:

         (a) "Affiliate" shall mean, with respect to any Person, any other
Person who, directly or indirectly through one or more intermediaries, controls,
is controlled by or is under common control with such Person. For purposes of
this definition, "control" when used with respect to any Person means the power
to direct the management and policies of such Person, directly or indirectly,
whether through the ownership of voting securities, by appointment of directors,
by contract or otherwise.

         (b) "Business Day" shall mean any day other than a business day on
which banking institutions in New York are authorized or obligated by law to
close for business.

         (c) "Commission" shall mean the U.S. Securities and Exchange Commission
or any other Federal agency at the time administering the Securities Act.

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         (d) "Exchange Act" shall mean the U.S. Securities Exchange Act of 1934,
as amended, or any successor Federal statute, and the rules and regulations of
the Commission promulgated thereunder, all as the same shall be in effect from
time to time.

         (e) "Closing Date" shall have the meaning set forth in the Merger
Agreement.

         (f) "Merger Shares" shall have the meaning set forth in the Recitals.

         (g) "Merger Agreement" shall have the meaning set forth in the
Recitals.

         (h) "Person" or "persons" mean any individual, corporation,
partnership, limited liability company, joint venture, association, joint-stock
company, trust, unincorporated organization or government or other agency or
political subdivision thereof

         (i) "Registrable Shares" shall mean the Shares held by Holder that
constitute Restricted Shares.

         (j) "Restricted Shares" shall mean (i) the Subject Shares issued to the
Holder pursuant to the Purchase Agreement, and (ii) any securities received in
respect of the Subject Shares, that (x) are held by the Holder and (y)
theretofore have not been sold to the public pursuant to a registration
statement under the Securities Act or pursuant to Rule 144 or that may not be
freely sold by the Holder without registration under Rule 144(k).

         (k) "Rule 144" shall mean Rule 144 promulgated under the Securities Act
or successor or complementary rule thereto.

         (l) "Securities Act" shall mean the Securities Act of 1933, as amended,
or any successor Federal statute, and the rules and regulations of the
Commission promulgated thereunder, all as the same shall be in effect from time
to time.

         (m) "Shares" shall mean shares of Common Stock, par value $ 0.001 per
share, of the Corporation.

         (n) "Transfer" shall mean any disposition of any Restricted Shares or
of any interest therein that would constitute a sale thereof within the meaning
of the Securities Act other than any such disposition pursuant to an effective
registration statement under the Securities Act and complying with all
applicable state securities and "blue sky" laws.

Section 2. Representations and Warranties of the Corporation.

         (a) Representations and Warranties of the Corporation. The Corporation
represents and warrants to the Holder as follows:

                  (i) The execution, delivery and performance by the Corporation
of this Agreement and the consummation of the transactions contemplated hereby
have been duly authorized by all requisite corporate action on the part of the
Corporation and the Agreement

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shall have been duly executed and delivered by the Corporation and is in full
force and effect. The Agreement constitutes the valid and binding obligations of
the Corporation, enforceable in accordance with its terms, subject as to
enforcement to applicable bankruptcy, insolvency, moratorium or other similar
laws relating to creditors' rights and general principles of equity.

                  (ii) The execution, delivery and performance of this Agreement
and the consummation of the transactions contemplated hereby, and compliance
with the provisions hereof by the Corporation will not (a) violate any law or
statute or order, judgment or decree of any court, administrative agency or
other governmental body applicable to the Corporation, or its properties or
assets, (b) conflict in any respect with or result in any breach of any of the
terms or provisions or constitute (without due notice or lapse of time, or both)
a default under the Certificate of Incorporation or By-laws of the Corporation,
(c) result in a breach or violation of, or a default under, or acceleration of
any obligations pursuant to any note, indenture, mortgage, lease, agreement,
contract, understanding, arrangement or instrument ("Contracts") to which the
Corporation is a party or by which it or any of its properties or assets may be
bound or affected, (d) result in any change in the rights or obligations of any
party under the Contracts, or (e) result in the creation or imposition of any
lien, claim, judgment, charge, mortgage, security interest, pledge, escrow
equity or other encumbrance of any nature whatsoever upon any of the properties
or assets of the Corporation.

         (b) Representations and Warranties of the Holder. The Holder represents
and warrants to the Corporation that it has all requisite power and authority to
execute this Agreement, to perform its obligations hereunder and to consummate
the transactions contemplated hereby. The execution and delivery of this
Agreement and the consummation of the transactions contemplated hereby have been
duly authorized by all necessary action on the part of the Holder. This
Agreement has been duly executed and delivered by the Holder and this Agreement
constitutes the legal, valid, binding and enforceable obligation of the Holder,
subject to applicable bankruptcy, insolvency, moratorium or other similar laws
relating to, creditors' rights and general principles of equity.

Section 3. Piggyback Registration. Subject to the terms and conditions set forth
in this Agreement, if the Corporation at any time after March 31, 2004, proposes
for any reason to register Shares under the Securities Act (other than on Form
S-4 or Form S-8 promulgated under the Securities Act or any successor forms
thereto, or any post-effective amendment relative to a registration statement
previously filed), it shall as promptly as practicable (but in no event less
than thirty (30) days prior to the date the registration statement is filed with
the Commission) give written notice to the Holder of its intention to effect
such registration. If within twenty (20) days of delivery of such notice the
Holder submits a written request to the Corporation specifying the amount of
Registrable Shares held by the Holder and the intended method of disposition of
such Registrable Shares, the Corporation shall include in the registration
statement and offering, the Registrable Shares specified in the request on the
same terms and conditions as the Shares otherwise being sold in such
registration and use its best efforts to cause such registration statement to
become effective. If the managing underwriter determines in good faith and
advises the Holder in writing that the inclusion in the registration statement
and offering of all the Registrable Shares proposed to be included would
interfere with the

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successful marketing of all securities proposed to be registered, then the
Holder shall agree to a downward adjustment in the number of Registrable Shares
to be included in such underwriting sufficient to alleviate such marketing
concern (provided that if securities are being offered for the account of
Persons other than the Corporation, then such securities intended to be offered
for the account of such other Person shall be reduced first).

Section 4. Shelf and Demand Registration. As soon as reasonably practicable
after March 31, 2004, the Corporation shall prepare and file with the SEC a
registration statement (the "Shelf Registration Statement") under form S-3 (or
any successor form, if permitted) to permit offerings and sales of Registrable
Shares by the Holder pursuant to Rule 415 under the Securities Act and shall use
its reasonable best efforts to maintain such Shelf Registration Statement
effective and current. The Corporation shall supplement and amend the Shelf
Registration Statement if required by the rules, regulations or instructions
applicable to the registration form used for such Shelf Registration Statement,
if required by the Securities Act or if reasonably requested by the Holder. In
the event that the Corporation has failed to or is unable to file and maintain a
Registration Statement as contemplated by this Section 4 and until such failure
or inability is remedied, the Holder shall have the right to make at any time a
written demand upon the Corporation (each, a "Demand Notice") to have the
Corporation as promptly as practical register under the Securities Act for offer
and sale all Registrable Shares specified to the Corporation by the Holder
within 20 days of the date of the Demand Notice and the Corporation agrees to so
register such Registrable Shares. Notwithstanding the foregoing, if the
Corporation shall furnish a certificate to the Holder signed by the Chief
Executive Officer of the Corporation (a "Blackout Notice"), the Corporation may
suspend the use, or delay the delivery or filing (but not the preparation) of
the Registration Statement or any amendment or supplements thereto, for a
limited period of time (which in no event shall be longer than forty-five (45)
days after the date of the Blackout Notice ("Suspension Right"), if the
Corporation determines in good faith that (i) it is in possession of material,
non-public information concerning an acquisition, merger, recapitalization,
consolidation, reorganization or other material transaction by or of the
Corporation or concerning pending or threatened litigation and disclosure of
such information would jeopardize any such transaction or litigation or
otherwise materially harm the Corporation, or (ii) in the case of a Demand
Notice, the filing of the registration statement would occur after February 15
of any year but before the filing by the Corporation of its annual report on
Form 10-K; and, in either case, (iii) the Corporation shall have so stated in
the Blackout Notice; provided, however, that the Corporation may not exercise
such Suspension Right more than twice in any twelve month period.

Section 5. Registration Mechanics. In connection with any registration of the
Registrable Shares effected pursuant to Sections 3 or 4 the Corporation shall:

         (a) prepare and file the registration statement and such amendments and
supplements to the registration statement and the prospectus or offering
circular used in connection therewith as may be necessary to keep the
registration statement current and effective and to comply with the provisions
of the Securities Act and the rules and regulations thereunder with respect to
the disposition of all the Registrable Shares covered by the registration
statement for the period

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required to effect the distribution thereof, and to use its best efforts to make
any corrections or updates to the registration statement or prospectus as
promptly as practicable;

         (b) furnish to the Holder such number of copies of any prospectus,
prospectus supplement or offering circular, including a preliminary prospectus,
and of a full registration statement and exhibits in conformity with the
requirements of the Securities Act and the rules and regulations thereunder, as
the Holder may reasonably request in order to facilitate the disposition of such
securities;

         (c) use its best efforts to register or qualify the Registrable Shares
covered by the registration statement under the securities or "blue sky" laws of
such state jurisdictions of the United States as the Holder may reasonably
request, and to accomplish any and all other acts and things which may be
necessary or advisable to permit sales in such jurisdictions of such Registrable
Shares and keep such registration or qualification in effect for so long as the
registration statement remains in effect;

         (d) in connection with an underwritten public offering, to enter into
an underwriting agreement in form and substance customary under the
circumstances, which shall include (i) provisions for any "lock up" period,
during which the sale of Shares and securities convertible into Shares by the
Corporation or its Affiliates will be restricted, that may reasonably be
required by the managing underwriter thereof and (ii) indemnification and
contribution provisions and procedures that are no less favorable to the
underwriters than those set forth in Section 10 hereof and otherwise reasonably
satisfactory to the managing underwriter;

         (e) in connection with any underwritten public offering, obtain
opinions of counsel to the Corporation (which counsel and opinions (in form,
scope and substance) shall be reasonably satisfactory to the managing
underwriter) addressed to the Holder and the underwriters, covering such matters
as are customarily covered in opinions requested in underwritten offerings of
equity and convertible debt securities and such other matters as may be
reasonably requested by the Holder and the underwriters (it being agreed that
the matters to be covered by such opinions shall include, without limitation,
the absence from the registration statement and the prospectus, including the
documents incorporated by reference therein and any prospectus supplement
thereto, of an untrue statement of a material fact or the omission of a material
fact required to be stated therein or necessary to make the statements therein
not misleading);

         (f) at any time when a prospectus relating thereto is required to be
delivered under the Securities Act, notify the Holder upon discovery that, or
upon the happening of any event as a result of which, the prospectus included in
such registration statement, as then in effect, includes an untrue statement of
a material fact or omits to state any material facts required to be stated
therein or necessary to make the statements therein not misleading, in the light
of the circumstances under which they were made, and (subject to the good faith
determination of the Board of Directors as to whether to cease all sales under
such registration statement) unless such untrue statement or omission has been
made upon and in conformity with information furnished in writing to the
Corporation by the Holder or any underwriter or any person who controls any of
them within the meaning of Section 15 of the Securities Act or any director or
officer of any of the foregoing, as the case may be, specifically for use in
connection with the preparation of the

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registration statement, at the request of the Holder prepare and furnish to it a
reasonable number of copies of a supplement to or an amendment of such
prospectus as may be necessary so that, as thereafter delivered to the Holders
of such securities, such prospectus shall not include an untrue statement of a
material fact or omit to state a material fact required to be stated therein or
necessary to make the statements therein not misleading, in the light of the
circumstances under which they were made;

         (g) in connection with any underwritten public offering, obtain "cold
comfort" letters and updates thereof from the independent public accountants of
the Corporation (and, if necessary, from the independent public accountants of
any subsidiary of the Corporation or of any business acquired by the Corporation
for which financial statements and financial data are, or are required to be,
included in the relevant registration statement), addressed to the Holder (if
the Holder has provided such letter, representations or documentation, if any,
required for such "cold comfort" letter to be so addressed) and the
underwriters, in customary form and covering matters of the type customarily
covered in "cold comfort" letters in connection with primary underwritten
offerings;

         (h) use its best efforts to cause the Registrable Shares to be listed
on or included for quotation on any stock exchange or trading system on which
the Shares then primarily trade;

         (i) provide a CUSIP number for all Registrable Securities, not later
than the effective date of such registration statement;

         (j) if requested by any managing underwriter or underwriters of
Registrable Shares, participate and use its best efforts to cause its executive
officers to participate in any "roadshow" or other marketing activities intended
to aid in the successful disposition of the Registrable Shares; and

         (k) upon the request of the Holder take reasonable efforts to make
available for inspection by the Holder and the underwriters, if any, and their
respective advisers all financial and other records, pertinent corporate
documents of the Corporation and cause the Corporation's officers, directors and
employees to take reasonable efforts to supply all information reasonably
requested by the Holder, the underwriters, if any, or any such adviser in
connection with such registration (as long as such registration shall not have
been postponed, delayed or withdrawn, or the effectiveness thereof terminated).

Section 6. Information Provided by the Holder. Whenever under this Agreement
Registrable Shares are being registered, the Holder shall provide the
Corporation on a timely basis with such information and materials as the
Corporation may reasonably request in order to effect the registration of the
Registrable Shares.

Section 7. Rule 144. With a view to making available to the Holder the benefits
of Rule 144, the Corporation agrees to use its best efforts to make available
adequate current public information with respect to it within the meaning of,
and as required pursuant to, Rule 144(c).

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Section 8. Selection of Underwriters. If the offering pursuant to any piggy back
registration pursuant to Section 3 hereof is to be made by or through
underwriters, the Corporation shall have the right to designate the managing
underwriter which shall be reasonably satisfactory to the Holder. If the
offering pursuant to any registration of Registrable Shares pursuant to a demand
by the Holder under Section 4 hereof is to be made by or through underwriters,
the Holder shall have the right to designate the managing underwriter which
shall be reasonably satisfactory to the Corporation.

Section 9. Expenses. All expenses incurred by the Corporation in effecting a
registration and sale of Registrable Shares under this Agreement, including,
without limitation, all registration and filing fees (including all expenses
incidental to filing with the NASD), fees and expenses of complying with
securities and "blue sky" laws, printing expenses, expenses incurred by the
Corporation in marketing and assisting in the marketing of such Registrable
Shares, the fees, disbursements and expenses of the managing underwriter or
underwriters, the fees and expenses of counsel and independent auditors for the
Corporation including fees of counsel and accountants incurred in connection
with the preparation of customary opinions of counsel and independent auditors,
and the reasonable fees and expenses of one counsel for the Holder, shall be
borne by the Corporation, provided, however, that any underwriting commissions
or concessions incurred in effecting a registration and sale of the Holder's
Registrable Shares shall not be borne by the Corporation.

Section 10. Indemnification.

         (a) In connection with any registration of any Registrable Shares under
the Securities Act pursuant to this Agreement, the Corporation shall indemnify
and hold harmless the Holder, and the officers, directors and other Persons, if
any, that may be deemed to control the Holder within the meaning of the Exchange
Act, and each underwriter, broker, dealer or other Person active on behalf of
the Holder, against any losses, claims, damages or liabilities, joint or several
(or actions in respect thereof), to which the Holder and such Persons may become
subject under the Securities Act or otherwise, insofar as such losses, claims,
damages or liabilities (or actions in respect thereof) (i) arise out of or are
based upon an untrue statement or alleged untrue statement of a material fact
contained in the registration statement (including the documents incorporated
therein by reference) under which such Registrable Shares were registered under
the Securities Act, any preliminary prospectus, final prospectus or prospectus
supplement contained therein or otherwise filed with the Commission, any
amendment or supplement thereto or any document incident to registration or
qualification of any Registrable Shares, or (ii) arise out of or are based upon
the omission or alleged omission to state therein a material fact required to be
stated therein or necessary to make the statements therein not misleading or,
with respect to any prospectus or prospectus supplement, necessary to make the
statements therein in the light of the circumstances under which they were made
not misleading, or (iii) arise out of any violation by the Corporation of the
Securities Act or state securities or "blue sky" laws applicable to the
Corporation and relating to action or inaction required of the Corporation in
connection with such registration or qualification under state securities or
"blue sky" laws; provided, however, that the Corporation shall not be liable in
any such case to the extent that any such loss, claim, damage, liability or
action arises out of or is based upon an untrue, statement or alleged untrue
statement or omission or alleged omission made in said registration

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statement, preliminary prospectus, final prospectus, prospectus supplement,
amendment, supplement or document incident to registration or qualification of
any Registrable Shares in reliance upon written information furnished to the
Corporation by the Holder with respect to information regarding the Holder
expressly for inclusion therein.

         (b) In connection with any registration of Registrable Shares under the
Securities Act pursuant to this Agreement, the Holder shall indemnify and hold
harmless (in the same manner and to the same extent as set forth in Section
10(a)) the Corporation, each director of the Corporation, each officer of the
Corporation who shall sign such registration statement, each underwriter,
broker, dealer or other Person acting on behalf of the Corporation and each
Person, if any, who controls any of the foregoing Persons within the meaning of
the Securities Act with respect to any statement or omission from such
registration statement, any preliminary prospectus, final prospectus or
prospectus supplement contained therein or otherwise filed with the Commission,
any amendment or supplement thereto or any document incident to registration or
qualification of any Registrable Shares, if such statement or omission was made
in reliance upon written information furnished by the Holder to the Corporation
or such underwriter expressly for inclusion in such registration statement,
preliminary prospectus, final prospectus, prospectus supplement, amendment,
supplement or document, provided that the liability of the Holder under this
Section 10(b) shall not exceed the aggregate proceeds received by the Holder
upon the sale of Registrable Shares by such investor pursuant to such
registration.

         (c) Promptly after receipt by an indemnified party of notice of the
commencement of any action involving a claim referred to in the preceding
paragraphs of this Section 10, such indemnified party will, if a claim in
respect thereof is made against an indemnifying party, give written notice to
the latter of the commencement of such action. In case any such action is
brought against an indemnified party, the indemnifying party will be entitled to
participate in and to assume the defense thereof, jointly with any other
indemnifying party similarly notified to the extent that it may wish, with
counsel reasonably satisfactory to such indemnified party, and after notice from
the indemnifying party to such indemnified party of its ejection so to assume
the defense thereof, the indemnifying party shall not be responsible for any
legal or other expenses subsequently incurred by the indemnified party in
connection with the defense thereof; provided, however, that an indemnified
party shall have the right to retain its own counsel, with the reasonable fees
and expenses to be paid by the indemnifying party, if such indemnified party
shall have been advised in writing by counsel that representation of such
indemnified party or parties by the counsel retained by the indemnifying party
or parties would be inappropriate due to actual or potential differing interests
between such indemnified party or parties and any other party represented by
such counsel in such proceeding.

         (d) If the indemnification provided for in this Section 10 is held by a
court of competent jurisdiction to be unavailable to an indemnified party with
respect to any loss, claim, damage, liability or action referred to herein, then
the indemnifying party, in lieu of indemnifying such indemnified party
hereunder, shall contribute to the amounts paid or payable by such indemnified
party as a result of such loss, claim, damage, liability or action in such
proportion as is appropriate to reflect the relative fault of the indemnifying
party on the one hand and of the indemnified party on the other in connection
with the statements or omissions which resulted in

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such loss, claim, damage, liability or action as well as any other relevant
equitable considerations. The relative fault of the indemnifying party and of
the indemnified party shall be determined by reference to, among other things,
whether the untrue or alleged untrue statement of a material fact or the
omission or alleged omission to state a material fact relates to information
supplied by the indemnifying party or by the indemnified party and the parties'
relative intent, knowledge, access to information and opportunity to correct or
prevent such statement or omission.

Section 11. Listing; Market for Shares; Legend. The Corporation shall use its
best efforts to ensure that the Holder has a readily realisable market for its
outstanding shares of Common Stock from January 1, 2004 (the "Liquidity
Covenant"). The Liquidity Covenant includes, without limitation, that (i) the
Corporation shall use its reasonable best efforts to obtain a listing on the
American Stock Exchange or a quotation on NASDAQ for its common stock prior to
December 31, 2003, and (ii) in the event the Corporation fails to obtain such a
listing or quotation, the Corporation shall use its best efforts to procure
purchasers of Shares held by the Holder, on terms and conditions satisfactory to
the Holder. Notwithstanding any other agreement between the Corporation and the
Holder, the Corporation shall at the request of the Holder promptly remove any
legends on the Registrable Shares at any time on or after March 31, 2004.

Section 12. Termination.

         (a) This Agreement shall terminate and be of no further force or effect
when there shall not be any Restricted Shares, provided that the rights of the
Holder and obligations of the Corporation under Sections 3 and 4 hereof shall
earlier terminate and be of no further force or effect with respect to the
Holder, and the Corporation vis-a-vis the Holder at such earlier time as it or
its assigns no longer holds any Restricted Shares.

         (b) Notwithstanding anything to the contrary contained herein, Section
9 of this Agreement shall survive any termination hereof and shall remain in
full force and effect.

Section 13. Successors and Assigns. This Agreement shall bind and inure to the
benefit of the Corporation and the Holder and the respective successors,
assigns, heirs and legal representatives (as the case may be) of the Corporation
and the Holder.

Section 14. No Inconsistent Rights; Other Agreements. (a) The Corporation shall
not grant, and has not granted, any other Person rights to register securities
of the Corporation on terms that would reasonably be likely to restrict the
ability of the Corporation fully to perform its obligations to the Holder
pursuant to this Agreement.

         (b) The Corporation shall not amend any registration rights agreement
with any other Person nor shall the Corporation waive any provision under any
registration rights agreement that it would be entitled to waive thereunder if
such waiver would reasonably be likely to adversely affect the Holder's rights
under this Agreement.

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Section 15 Assignment. The rights granted pursuant to this Agreement may not be
assigned or otherwise conveyed by the Holder or by any subsequent assign of any
of such rights without the written consent of the Corporation, which consent
shall not unreasonably be withheld; provided, however, that no such written
consent shall be required if the transfer is to any Affiliate or partner of the
Holder or if such assign acquires at least a majority of the capital stock of
the Corporation owned by the Holder. The rights granted pursuant to this
Agreement with respect to the Restricted Shares shall be deemed to be assigned
subject to the provisions of this Section 14 (with respect to such Restricted
Shares) to any assign of such Restricted Shares, unless the documentation
executed by the Holder to effect the transfer of such Restricted Shares provides
that rights under this Agreement are not being assigned to such assign. The
Holder shall be deemed to include any party to whom the Holders rights with
respect to particular Restricted Shares have been assigned in accordance with
this Section 15.

Section 16. Entire Agreement. This Agreement, which shall be effective as of the
date hereof, contains the entire agreement among the parties with respect to the
subject matter hereof and supersedes all prior and contemporaneous arrangements
or understandings with respect thereto.

Section 17. Severability. Whenever possible, each provision or portion of this
Agreement will be interpreted in such manner as to be effective and valid under
applicable law, but if any provision or portion of any provision of this
Agreement is held to be invalid, illegal or unenforceable in any respect under
any applicable law, rule or regulation in any jurisdiction, such invalidity,
illegality or unenforceability will not affect any other provision or portion of
any provision in such jurisdiction, and this Agreement will be reformed,
construed and enforced in such jurisdiction as if such invalid, illegal or
unenforceable provision or a portion of any provision shall have been replaced
with a provision or a portion of any provision, which shall, to the maximum
extent permissible under such applicable law, rule or regulation, give effect to
the intention of the parties as expressed in such invalid, illegal or
unenforceable provision.

Section 18. Notices. All notices and other communications pursuant to this
Agreement shall be in writing and deemed to be sufficient if delivered
personally, by telecopier, sent by nationally-recognized overnight courier or
mailed by registered or certified mail (return receipt requested), postage
prepaid, to the parties at the following addresses:

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         (a) if to the Corporation, to:

                                            VITAL LIVING, INC.
                                            5080 North 40th Street
                                            Suite 105
                                            Phoenix, AZ 85018-2147
                                            Attn: Mr. Brad Edson
                                            Telephone 602- 952-9909
                                            Facsimile: 602- 952-7129

                   with a copy to:          Kelly Lytton & Vann LLP
                                            1900 Avenue of the Stars, Suite 1450
                                            Los Angeles, CA 90067
                                            Attention: Bruce Vann Esq.
                                            Telephone No.: 310-277-5333
                                            Facsimile No.: 310-277-5953

         (b) if to the Holder, to:          SkyePharma PLC
                                            105 Piccadilly
                                            London, England WIJ 7NJ
                                            Attn: Company Secretary
                                            Telephone No.: +44 20 7491 1777
                                            Facsimile No.: +44 20 7491 3338

         with a copy to:                    Sullivan & Cromwell LLP
                                            1 New Fetter Lane
                                            London, England EC4A 1AN
                                            Attn: Kathryn A. Campbell, Esq.
                                            Telephone: +44 30 7959 8580
                                            Facsimile No.: +44 20 79598950

or to such other address as the party to whom notice is tope given may have
furnished to the other parties hereto in writing in accordance herewith. Any
such notice or communication shall be deemed to have been delivered and received
(i) in the case of personal delivery or delivery by telecopier, on the date of
such delivery, (ii) in the case of a nationally-recognized overnight courier, on
the next business day after the date when sent and (iii) in the case of mailing,
on the third business day following that on which the piece of mail containing
such communication is posted.

Section 19. Modifications; Amendments; Waiver. The terms and provisions of this
Agreement may only be amended or waived either (i) with the written consent of
the Corporation and the Holder or (ii) in writing by the party against whom such
amendment or waiver is sought to be enforced. The failure of a party to insist
upon strict adherence to any term of this Agreement on

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one or more occasions shall not be considered a waiver of or deprive that party
of the right thereafter to insist upon strict adherence to that term or any
other term of this Agreement.

Section 20. Counterparts. This Agreement may be executed in any number of
separate counterparts, and each such counterpart hereof shall be deemed to be an
original instrument, but all such counterparts together shall constitute one
agreement.

Section 21. Headings. The headings of the various sections of this Agreement
have been inserted for convenience of reference only and shall not be deemed to
be a part of this Agreement.

Section 22. Governing Law; Submission to Jurisdiction; Selection of Forum. This
Agreement shall be construed in accordance with the laws of the State of New
York, without regard to conflict of law provisions thereof. Each party hereto
agrees that it shall bring up any action or proceeding in respect of any claim
arising out of or related to this agreement or the transactions contained in and
contemplated by this Agreement, whether in tort or contract or at law or in
equity, exclusively in the United States District Court for the Southern
District of New York or, if such court is not available, the Supreme Court of
the State of New York (the "Chosen Courts") and solely in connection with claims
arising under this Agreement or the transactions contained in or contemplated by
this Agreement (i) irrevocably submits to the exclusive jurisdiction of the
Chosen Courts, (ii) waives any objection to laying venue in any such action or
proceeding in the Chosen Courts and agrees not to commence any action in respect
of any such claim in any other court or forum, (iii) waives any objection that
the Chosen Courts are an inconvenient forum or do not have jurisdiction over any
party hereto, (iv) waives any right to a trial by jury and (v) agrees that
service of process upon such party in any such action or proceeding shall be
effective if notice is given in accordance with Section 18 of this Agreement.
Without limiting the foregoing, each of the Corporation and the Holder hereby
appoints, in the case of any such action or proceeding brought in the courts of
or in the State of New York, CT Corporation System with offices on the date
hereof at 111 8th Avenue, 13th Floor, New York, N.Y. 10011 to receive, for it
and on its behalf, service of process in the State of New York with respect
thereto, provided the Corporation and the Holder may appoint any other person,
reasonably acceptable to the other party, with offices in the State of New York
to replace such agent for service of process upon delivery to the other party of
a reasonably acceptable agreement of such new agent agreeing to act.

                                       12

<PAGE>

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed
and delivered as of the date first written above.

                                      Vital Living, Inc.

                                            By:_____________________

                                            Its:____________________

                                            By:_____________________

                                            Its:____________________

                                      SkyePharma PLC

                                            By:_____________________

                                            Its:____________________

                                       13<PAGE>

                                                                    EXHIBIT 10.3

                          CONFIDENTIAL TREATMENT REQUESTED BY VITAL LIVING, INC.

                                                                   REDACTED COPY

                        DEVELOPMENT AND LICENSE AGREEMENT

                  This Agreement, dated as of December 28, 2001 (the "EFFECTIVE
DATE"), by and between e-nutriceuticals, Inc., a Delaware corporation ("E-NUT"),
and SkyePharma PLC, a United Kingdom corporation ("SKYE").

                              W I T N E S S E T H:

                  WHEREAS, e-nut is in the business of developing and marketing
dietary and nutriceutical supplements throughout the world; and

                  WHEREAS, Skye owns certain technology, , that is useful in the
production of controlled release oral delivery compounds; and

                  WHEREAS, e-nut wishes to obtain a license to the Technology
for use in the Field (as defined below) and Skye wishes to grant a license to
e-nut for use in the Field under terms mutually favorable to both parties.

WHEREAS, Skye and e-nut wish to collaborate in the development of oral delivery
methods of certain dietary and nutriceutical supplements, using Skye's
proprietary technology.

                  NOW, THEREFORE, in consideration of the mutual promises,
covenants and conditions set forth below and in reliance on the representations
and warranties herein provided, the parties agree as follows:

                  1.       Definitions. For the purposes of this Agreement, the
following terms, when written with an initial capital letter, will have the
meaning ascribed to them below.

                           (a) ABANDONMENT means a decision by e-nut to stop
development work with respect to a Product or Additional Product.

                           (b) AFFILIATE means, with respect to either party
hereto, any corporation, partnership or other business entity controlled by,
controlling or under common control with either such party, with "CONTROL"
meaning direct or indirect beneficial ownership of at least 50% (or such lesser
percentage as is the maximum allowed to be owned by a foreign corporation in a
particular jurisdiction) of the voting stock of, or 50% or more interest in the
income of such corporation or other business entity.

                           (c) E-NUT INVENTION means any invention including any
invention relating to the Field that uses e-nut Technology and that is first
conceived solely by an employee licensee licensor (other than Skye) agent
consultant or contractor of e-nut or of any Affiliate of e-nut during the term
of this Agreement,.

                           (d) E-NUT KNOW-HOW means all information and
materials including but not limited to discoveries improvements processes
formulas data inventions know-how and trade secrets patentable or otherwise
which during the term of this Agreement (i) are in the

<PAGE>

possession or control of e-nut or its Affiliates (ii) are not generally known
(iii) are necessary or useful to e-nut in connection with Development under this
Agreement or the development manufacture marketing use or sale of the Product or
Additional Product and (iv) are in the Field.

                           (e) E-NUT PATENTS means all of the intellectual
property or other rights owned, licensed or acquired by e-nut or any of its
Affiliates during the term of this Agreement

                           (f) E-NUT TECHNOLOGY means any e-nut Patents or e-nut
Know-How

                           (g) FIELD means ***.

                           (h) JOINT INVENTION means the entire right title and
interest in all discoveries, improvements processes formulas data inventions
know-how and trade secrets, patentable or otherwise arising from Development
under this Agreement and that is not an e-nut Invention or a Skye Invention.

                           (i) JOINT PATENT means any United States or foreign
patent, patent application and equivalent, including any reissue, extension,
substitution, continuation, division and continuation-in-part based on any Joint
Invention or improvement to any Joint Invention.

                           (j) NET SALES OF PRODUCTS means all amounts received
by e-nut and/or an Affiliate of e-nut from sales of Products or Additional
Products to a third party, less deductions for royalties to other parties and
credits or allowances actually granted upon claims, rejections or returns of
Products or Additional Products, including recalls.

                           (k) PATENT COSTS means all preparation, filing,
prosecution and maintenance out-of-pocket fees and expenses, including legal
fees, incurred in connection with the establishment, maintenance and prosecution
of Skye or Joint Patents relating to any Product or Additional Product.

                           (l) PRODUCT DEVELOPMENT FEES means an amount equal to
Skye's development cost including the cost of labor, equipment, raw materials,
overhead and technical support, and test batch manufacture incurred directly and
exclusively for Development of the Products and/or Additional Products. The
Product Development Fees shall be no less favorable than fees charged by Skye
for development work performed by it for third parties.

                           (m) SKYE INVENTION means the entire right, title and
interest in all discoveries, improvements, processes, formulas, data,
inventions, know-how and trade secrets, patentable or otherwise including those
arising from Development under this Agreement developed or invented solely by
any employee licensee licensor agent consultant or contractor of Skye or of any
Affiliate of Skye.

                           (n) SKYE KNOW-HOW means all information and materials
including but not limited to discoveries improvements processes formulas data
inventions know-how and

                                       2

<PAGE>

trade secrets patentable or otherwise which during the term of this Agreement
(i) are in the possession or control of Skye or its Affiliates (ii) are not
generally known and (iii) are necessary or useful to e-nut in connection with
Development under this Agreement or the development manufacture marketing use or
sale of the Product or Additional Product.

                           (o) SKYE PATENTS means all of the following
intellectual property or other rights owned, licensed or acquired by Skye or any
of its Affiliates during the term of this Agreement:

                  i)       the patents and patent applications listed in Exhibit
                           1 attached hereto;

                  ii)      any patents issued with respect to the applications
                           identified in sub-clause (i) hereof and any divisions
                           and continuations of such applications;

                  iii)     any continuations in part applications and any
                           resulting patents that are directed to subject matter
                           described in the patents and applications identified
                           in sub-clauses (i) and (ii) hereof;

                  iv)      any patent applications and the resulting patents
                           that claim priority from or are directed to the
                           subject matter described in the patents and
                           applications identified in sub-clauses (i) (ii) and
                           (iii) hereof;

                  v)       any patent applications and the resulting patents
                           that cover or are related to Development under this
                           Agreement;

                  vi)      any resissues renewals extensions supplementary
                           protection certificates utility models and the like
                           and foreign equivalents thereof of any patents
                           described in sub-clauses (i) (ii) (iii) and (iv)
                           hereof.

                           (p) SKYE TECHNOLOGY means all of the following (but
in each case only in so far as Skye is free to license such technology to e-nut)
(i) the Skye Patents; and (ii) any Skye Know-How (including any patents or
patent applications filed after the date hereof which include any Skye Know-How)
currently owned or licensed to Skye (or its Affiliates) after the date hereof
and which relate to the implementation of the inventions which are the subject
of the Skye Patents..

                           (q) VALID CLAIM means a claim of any issued and
unexpired patent right under the Skye Patents or Joint Patents (excluding
Acquired Joint Patents, if any) which has not been finally canceled or declared
invalid by a patent office or by a court of competent jurisdiction in any
unappealed and unappealable decision.

                  2.       Product Identification and Licenses.

                  2.1.     Products. In the period to ***, (i) e-nut shall have
the exclusive right to identify up to *** product candidates in the Field for
Development using the Skye

                                       3

<PAGE>

Technology (each, a "PRODUCT"), (ii) Skye shall not have the right to license
the Technology (or any Joint Patent) to third parties for products in the Field
and (iii) Skye shall not have the right to use the Technology (or any Joint
Patent) to independently develop products in the Field.

                  2.2.     Additional Products. During the *** commencing on ***
(i) e-nut shall have the right to identify additional product candidates in the
Field for Development using the Skye Technology provided that Skye is free to
develop any such Product (each, an "ADDITIONAL PRODUCT"), and (ii) Skye shall
have the right to license the Technology (and Joint Patents) to third parties
for products in the Field not identified by e-nut, provided that (i) if at the
time of identification of an Additional Product by e-nut, Skye has not granted
exclusive rights to another party to employ the Technology (it being understood
that Skye does not have the right to grant exclusive licenses to Joint Patents)
for such Additional Product in the Field, e-nut shall have the exclusive right
to employ the Technology (and any Joint Patents) for such Additional Product and
Skye shall not have the right to license the Technology (or Joint Patents) to
third parties for such product or to use the Technology (or Joint Patents) to
independently develop such product in the Field and (ii) if at the time of
identification of an Additional Product by e-nut, Skye has granted nonexclusive
rights to one or more third parties to employ the Technology (or related Joint
Patents) for such Additional Product in the Field, e-nut shall have the
nonexclusive right to employ the Technology (and related Joint Patents) for such
Additional Product.

                  2.3.     Extensions, Etc. For purposes of this Agreement, a
"Product" or "Additional Product" shall include extensions thereof utilizing
substantially the same active or primary ingredient.

                  2.4.     License to the Technology. Subject to the terms of
this Agreement, Skye hereby grants to e-nut and its Affiliates a worldwide right
and license to use the Skye Technology in the Field to make, have made, use,
have used, offer for sale, lease, market, sell, have sold or import Products
and, subject to the limitations set forth in Section 2.2 above, Additional
Products (the "LICENSE"). The License will be exclusive until ***, after which
date the License will be non-exclusive save with respect to Products and
Additional Products and Skye may grant licenses within the Field to other
parties. Without limiting the foregoing, e-nut or its Affiliates shall have the
right to sublicense any right licensed to it under this Agreement without the
prior consent of Skye provided any such sub-licence is in terms not dissimilar
to this Agreement. Notwithstanding the foregoing, the terms of any sublicense by
e-nut to a third party shall be consistent with the obligations and payments to
Skye under this Agreement.

                  2.5.     License Fees. In consideration of the grant of the
right to identify Products and Additional Products described in Sections 2.1 and
2.2 above, and the license described in Section 2.3 above, (i) e-nut hereby pays
Skye a one time fee of *** and (ii) agrees to pay Skye quarterly in arrears
royalties equal to *** of e-nut's Net Sales of Products or Additional Products
during the term of this Agreement where the Product or Additional Product and
its exploitation under the terms of this Agreement are covered by a Valid Claim.
All payments to be made pursuant to this Agreement other than those made in
Shares (as defined below) shall be made by cash, check or wire transfer in
United States Dollars and all references herein to "$" shall mean United States
Dollars.

                                        4

<PAGE>

                  3.       Product Development.

                  1.1.     Advisory Committee. 3.1.

                           (a)      Within 30 days of the Effective Date, e-nut
and the Contractor shall each appoint an equal number of persons to serve on an
advisory committee (the "ADVISORY COMMITTEE"). Upon identification of a Product
or an Additional Product, the Advisory Committee shall meet to determine the
work required ("DEVELOPMENT") to develop a Product or Additional Product,
including the work to be performed by e-nut and Skye (the "DEVELOPMENT PLAN)

                           (b)      The Advisory Committee shall within 30 days
of the end of each calendar year review and approve a budget for the following
calendar year's activities.

                           (c)      The Advisory Committee shall be responsible
for (i) amending the Development Plan and associated budget, (ii) deciding
strategies and problems with respect to the Development Plan, (iii) specifying
the information to be included in the reports referred to in Section 3.3(b)
below, and (iv) making recommendations as to the advisability of continuing or
abandoning the Development of a Product or Additional Product

                  3.2.     Product Development Fees. e-nut shall pay fees for
Product Development under the Development Plan ("PRODUCT DEVELOPMENT FEES") to
Skye for its work in developing Products and Additional Products. Product
Development Fees per Product shall be ***, of which *** will normally be
allocated to formulation of the Product and *** to test batch manufacture. The
Product Development Fees in respect of the Products will be ***, all of which
amount shall be due and payable on the Effective Date and will be satisfied by
*** at a price of ***, on the terms and conditions set out in the ***. Product
Development Fees in respect of Additional Products will be at the same per
product rate, adjusted for inflation in Switzerland if such inflation exceeds
*** per annum in U.S. dollars. Skye will issue invoices within 30 days of the
end of each calendar quarter for Development performed by Skye under the
Development Plan on Additional Products during such quarter and e-nut shall
remit payment within 30 days after the date of such invoice.

                  3.3.     Development Work.

                           (a) Skye agrees to make available through its wholly
owned subsidiary company Jagotec AG or an Affiliate thereof ("the CONTRACTOR")
suitable facilities and development personnel for the performance of Development
work to be performed pursuant to this Agreement.

                           (b) The Contractor shall carry out Development in a
good scientific manner and in compliance with applicable laws. The Contractor
shall provide e-nut with monthly summary reports and quarterly progress reports
with respect to the development work performed by it pursuant to this Agreement,
and shall permit e-nut representatives to enter the Contractor's facilities upon
reasonable notice and not more than once in each twelve month period for the
purpose of making quality assurance audits of the facilities at e-nut's expense.

                                       5

<PAGE>

                           (c) It shall be the obligation of e-nut to provide
all active ingredients and associated materials other than materials directly
associated with the Skye Technology required by the Contractor to perform its
obligations under this Agreement.

                           (d) The parties acknowledge that the nature and
development of any Product or Additional Product is, as of the Effective Date,
speculative, and may ultimately entail work outside of their expertise (or with
respect to Skye, reasonable research or development capabilities). Therefore,
except as set forth in Section 3.3(a) above, nothing herein shall obligate
either party to make use of the other's services.

                           (e) E-nut will grant to the Contractor a
non-exclusive license to any intellectual property rights held in the Products
or Additional Products for the purpose only of enabling the Contractor to
perform its obligations under the Agreement.

                  3.4.     Recordkeeping and Audits.

                           (a) e-nut shall, and shall cause its Affiliates to,
keep complete and accurate books and records pertaining to the sale of the
Products and Additional Products. Such books and records shall be retained for
at least *** after the calendar year to which they related or for such longer
period if and as required by applicable law.

                           (b) The Contractor shall keep complete and accurate
books and records pertaining to the research and development work to be
performed by it pursuant to this Agreement. Such books and records shall be
retained for at least *** after the calendar year to which they related or for
such longer period if and as required by applicable law.

                  3.5.     Audit of Records. During the term of this Agreement
and for a period of *** thereafter, at the request of either party, the other
party shall, and shall cause its Affiliates to, permit the requesting party and
its representatives, at reasonable times and upon reasonable notice, but no more
than *** in any calendar year, to examine and audit the books and records
maintained by such other party pursuant to Section 3.5. If the audit establishes
that either party underpaid or overpaid the other party any amount in respect of
the Additional Products, the appropriate party shall promptly pay the other the
full amount of such underpayment or overpayment in accordance with this
Agreement.

                  4.       Patents and Inventions.

                  4.1.     Ownership. Except as provided in Section 4.3(b) below
and the licenses granted in this Agreement, as between Skye and e-nut, all
rights in and to (i) the Skye Patents and Skye Inventions shall be the exclusive
property of Skye, and (ii) the e-nut Patents and e-nut Inventions shall be the
exclusive property of e-nut.

                  4.2.     Maintenance. During the term of this Agreement, Skye
shall maintain in force all Skye Patents.

                  4.3.     Patent Applications.

                                       6

<PAGE>

                           (a) Skye shall of its own accord, file and prosecute,
at Skye's expense, such patent applications regarding any portion of the Skye
Technology which in its reasonable discretion it considers useful for the
Development of the Product or Additional Products.

                           (b) If for any reason Skye declines to file any
patent application under Section 4.3(a), or, having filed such application,
declines to prosecute such application or maintain any such Skye Patent, e-nut
may so file, prosecute or maintain such patent application and resulting patent
in e-nut's name and at e-nut's expense (a "TRANSFERRED PATENT") in such country,
in which event Skye shall, at e-nut's request and expense, provide all
reasonable assistance, including disclosure of all information which is
reasonably necessary to permit e-nut to file such patent applications. e-nut
shall grant to Skye a non-exclusive, royalty-free license, without any warranty
or representation, to use such Transferred Patent in connection with research
and development, but Skye shall have no right to commercialize such Transferred
Patent.

                  4.4.     Joint Inventions and Joint Patents.

                           (a) Ownership. Subject to Section 4.4(d), the parties
shall jointly retain all right, title and interest in and to the Joint
Inventions and other intellectual property rights relating thereto, and all
patents and patent applications claiming such Joint Inventions.

                           (b) Prosecution. Each party will promptly notify the
other of Joint Inventions. The parties shall discuss in good faith a patent
strategy with respect to all patentable Joint Inventions. The parties shall
mutually determine which party shall draft, prosecute and maintain, and, subject
to 4.4(c) below, shall share equally the Patent Costs related to, all patent
applications for Joint Patents. The party responsible for filing a patent
application shall give the other party an opportunity to comment upon any such
application and shall not amend any claims during the prosecution of such
application without the consent of the other party, which shall not be
unreasonably withheld or delayed. Neither party shall take any significant steps
relating to the Joint Patents without the prior approval of the other party for
so long as the other party is paying the applicable Patent Costs in accordance
with the terms of this Agreement.

                           (c) Procedure if Disagreement. If the parties cannot
agree on (i) whether to file a patent application for a Joint Patent or (ii)
which party has responsibility for preparing, filing, prosecuting or maintaining
such an application, then, either party may file such patent application for
such Joint Patent (but only in the country or countries in which the parties
have been unable to agree upon a patent strategy). The party that files the
patent application for a Joint Patent shall provide the other party with notice
thereof, a copy of such filing and all information pertaining to such filing.

                           (d) Acquired Joint Patent. Subject to the terms of
this Agreement, each party may make, use, sell, offer for sale, import, license
and assign its rights in Joint Inventions and Joint Patents in any country
without the consent of or an accounting to the other party. A party shall be
deemed to have assigned, and hereby does assign, all of its rights in a Joint
Invention and the Joint Patent claiming such Joint Invention (collectively an
"ACQUIRED JOINT PATENT") to the other party if it does not pay its share of the
Patent Costs related thereto.

                                       7

<PAGE>

                  5.       Infringement.

                  5.1.     Patent.

                           (a) A party shall promptly notify the other party
when any infringement of any Skye Patent which is or might be relevant to the
Field is uncovered or suspected. Skye shall have the first right to enforce any
Skye Patent against any infringement or alleged infringement thereof, and shall
at all times keep e-nut informed as to the status thereof. Skye may (i) in its
sole judgment and at its own expense institute a suit against any such infringer
or alleged infringer, (ii) control, settle and defend such suit, and (iii)
recover for its own account any damages, awards or settlements resulting
therefrom (subject to the provisions of this Agreement). e-nut shall reasonably
cooperate in any such litigation at Skye's expense.

                           (b) If Skye elects not to prosecute an infringement
of a Skye Patent which is or might be relevant to the Field, then it shall so
notify e-nut in writing within 60 days of receiving a request from e-nut to
prosecute such infringement. Thereafter, e-nut may (i) in its sole judgment and
at its own expense institute a suit against any such infringer or alleged
infringer, (ii) control, settle and defend such suit, and (iii) recover for its
own account any damages, awards or settlements resulting therefrom (subject to
the provisions of this Agreement). Skye shall reasonably cooperate in any such
litigation at e-nut's expense.

                           (c) In the event of a recovery of compensatory (i.e.,
non-punitive damages net of legal fees and out-of-pocket costs) under Section
5.1(b) above, e-nut shall pay to Skye the applicable royalty rate on infringing
Net Sales of Products. Infringing Net Sales of Products shall be calculated from
the amount of infringing sales on which the award of compensatory damages is
based. In the event of recovery of punitive damages under Section 5.1(b), e-nut
shall pay to Skye an amount equal to 10% thereof.

                  5.2.     Joint Patent.

                           (a) A party shall promptly notify the other party
when any infringement of any Joint Patent is uncovered or suspected. A party
which owns an Acquired Joint Patent shall have the sole right, but not the
obligation, at its sole expense, to institute, prosecute, and control any action
or proceeding with respect to an infringement of such Acquired Joint Patent.

                           (b) The parties shall mutually agree upon which party
shall have the first right to enforce such Joint Patent against any infringement
or alleged infringement thereof, and shall at all times keep the other party
informed as to the status thereof. Such party may (i) in its sole judgment and
at its own expense institute a suit against any such infringer or alleged
infringer, and (ii) control, settle and defend such suit. Each party shall give
reasonable assistance to the other in connection with any action or proceeding
regarding a Joint Patent (including being joined as a party plaintiff if
necessary to prosecute the action).

                           (c) Any damages or other monetary awards recovered in
an action against an infringer of a Joint Patent (other than an Acquired Joint
Patent) shall be applied to the reimbursement of the parties' respective
out-of-pocket expenses (including reasonable attorneys' fees and expenses)
incurred in prosecuting such infringement action on a pro rata

                                       8

<PAGE>

basis based upon their respective out-of-pocket expenses until all such expenses
have been recovered, and any remaining balance shall be divided equally between
the parties.

                  5.3.     Settlement with a Third Party. A party may not settle
an action or proceeding against an infringer under Section 5.1 or Section 5.2
(except with respect to an Acquired Joint Patent) without the written consent of
such other party, such consent not to be unreasonably withheld or delayed.

                  6.       Trademarks, Etc.

                  6.1.     Protection. Each party shall be solely responsible
for protecting its trademarks. Each party agrees to notify the other party
promptly of any unauthorized use, known by it, of the other party's trademarks.

                  7.       Representations and Warranties.

                  7.1.     By Skye. As of the Effective Date, Skye represents
and warrants to e-nut as follows:

                           (a) Due Organization and Power. Skye is a duly
organized and validly existing corporation in good standing under the laws of
England and has all requisite corporate power and authority for the ownership
and operation of its properties and for the carrying on of its business as now
conducted and as now proposed to be conducted, and for the due execution and
delivery hereof and performance of its obligations hereunder.

                           (b) Authorization. All corporate action on the part
of Skye, its officers, directors and stockholders necessary for the
authorization, execution and delivery of this Agreement and the performance of
all of Skye's obligations hereunder has been taken. This Agreement constitutes
the valid and legally binding obligation of Skye enforceable in accordance with
its terms, subject to laws of general application relating to bankruptcy,
insolvency and the relief of debtors and rules of law governing specific
performance, injunctive relief or other equitable remedies.

                           (c) Governmental Approvals. No authorization,
consent, approval, license, exemption of or filing or registration with any
court or governmental department, commission, board, bureau, agency or
instrumentality, domestic or foreign, under any applicable laws, rules or
regulations presently in effect, is or will be necessary for, or in connection
with, the performance by Skye of its obligations under this Agreement.

                           (d) Technology. Except as set forth in SCHEDULE 7.1,
there are no facts known to Skye which would reasonably serve as a basis of any
claim that Skye does not have the right to use or to license the Technology to
e-nut as contemplated by the this Agreement. Skye has not licensed or otherwise
transferred, or entered into any agreement, commitment or arrangement (whether
oral or written) to license or otherwise transfer, to any other person any of
the Technology or any rights thereto or interests therein, which now, or with
the passage of time will, conflict with or impair the rights to and interests in
the Technology transferred to e-nut pursuant to this Agreement.

                                       9

<PAGE>

                           (e) Litigation. There is no litigation or
governmental proceeding or investigation pending or, to the knowledge of Skye,
threatened against Skye which could reasonably be expected to materially and
adversely affect the performance by Skye of its obligations under this
Agreement.

                  7.2.     By e-nut. As of the Effective Date, e-nut represents
and warrants to Skye as follows:

                           (a) Due Organization and Power. e-nut is a duly
organized and validly existing corporation in good standing under the laws of
the State of Delaware and has all requisite corporate power and authority for
the ownership and operation of its properties and for the carrying on of its
business as now conducted and as now proposed to be conducted, and for the due
execution and delivery hereof and performance of its obligations hereunder,
including the issuance of the Shares.

                           (b) Authorization. All corporate action on the part
of e-nut, its officers, directors and stockholders necessary for the
authorization, execution and delivery of this Agreement, and for the performance
of all of its obligations hereunder, including the issuance of the Shares, has
been taken. This Agreement constitutes the valid and legally binding obligation
of e-nut enforceable in accordance with its terms, subject to laws of general
application relating to bankruptcy, insolvency and the relief of debtors and
rules of law governing specific performance, injunctive relief or other
equitable remedies.

                           (c) Governmental Approvals. No authorization,
consent, approval, license, exemption of or filing or registration with any
court or governmental department, commission, board, bureau, agency or
instrumentality, domestic or foreign, under any applicable laws, rules or
regulations presently in effect, is or will be necessary for, or in connection
with, the performance by e-nut of its obligations under this Agreement.

                           (d) Litigation. There is no litigation or
governmental proceeding or investigation pending or, to the knowledge of e-nut,
threatened against e-nut which could reasonably be expected to materially and
adversely affect the performance by e-nut of its obligations under this
Agreement.

                           (e) Noncontravention. The execution, delivery and
performance by e-nut of this Development Agreement does not and will not (i)
contravene or conflict with its certificate of incorporation or bylaws, (ii)
contravene or conflict with or constitute a violation of any provision of any
law, regulation, judgment, injunction, order or decree binding upon or
applicable to e-nut, (iii) constitute a default under or give rise to any right
of termination, cancellation or acceleration of any right or obligation of e-nut
or to a loss of any benefit to which e-nut or is entitled under any provision of
any agreement, contract or other instrument binding upon e-nut or any license,
franchise, permit or other similar authorization held by e-nut, or (iv) result
in the creation or imposition of any lien on any asset of e-nut, except, in the
case of those items specified in (ii), (iii) or (iv) above which would not,
individually or in the aggregate, have a material adverse effect on the ability
of e-nut to perform its obligations under this Agreement.

                                       10

<PAGE>

                           (f) The Shares. Upon issuance in accordance with this
Agreement, the Share will be validly issued, fully-paid and nonassessable, and
free from all preemptive rights.

                  8.       Indemnification; Limitation of Liability.

                  8.1.     Indemnification by Skye. Skye hereby agrees to
defend, and hold e-nut, its Affiliates and their officers, directors, employees,
agents and consultants harmless from and against any and all losses, damages,
liabilities, costs and expenses (including reasonable attorneys' fees and
expenses) (collectively, "LOSSES") resulting from or arising out of: (i) the
development work conducted by Skye, (ii) the negligence or willful misconduct of
Skye or its Affiliates, sublicensees, and its or their directors, officers,
agents, employees, or consultants, or (iv) Skye's material breach of any
provision of or representation contained in this Agreement.

                  8.2.     Indemnification by e-nut. e-nut hereby agrees to
save, defend and hold Skye, its Affiliates and their officers, directors,
employees, agents and consultants harmless from and against any and all Losses
resulting from or arising out of (i) product development work conducted by
e-nut, (ii) the negligence or intentional misconduct of e-nut, or its
Affiliates, sublicensees, and its or their directors, officers, agents,
employees, consultants or clinical investigators, or (iii) e-nut's material
breach of any provision of or representation contained in this Agreement.

                  8.3.     Indemnification Procedure.

                           (a) A party seeking indemnification (the
"INDEMNITEE") shall give prompt notice to the other party (the "INDEMNITOR") and
shall furnish copies of all papers and documents in the Indemnitee's possession
or control which relate to any Losses. The Indemnitee shall cooperate with the
Indemnitor in connection with the defense of the claim underlying the Losses.
The Indemnitor shall diligently pursue, and have sole control of, the defense of
any claims. The Indemnitee may participate in such defense with counsel of its
own choice at its own expense. If the Indemnitor does not so assume the defense
of such claim, the Indemnitee may conduct the defense with counsel of the
Indemnitee's choice (the costs for which to be reimbursed by the Indemnitor on a
calendar quarter basis so long as the Indemnitee controls the defense of the
claim). A party may not settle any dispute or enter into a judgment on behalf of
the other (including the Indemnitee if it has assumed its own defense) without
the other's written consent, not to be unreasonably withheld or delayed.

                  8.4.     Limitation of Liability. EXCEPT IN CONNECTION WITH A
MATERIAL BREACH UNDER SECTION 9 OR SECTION 7.1(D), UNDER NO CIRCUMSTANCES SHALL
A PARTY BE LIABLE TO THE OTHER PARTY FOR CONSEQUENTIAL, INCIDENTAL, PUNITIVE OR
SPECIAL DAMAGES.

                  9.       Confidentiality, Disclosure and Publications.

                  9.1.     Confidentiality.

                           (a)      Except as otherwise provided in this
Agreement during the term of this Agreement and for a period of seven years
following expiration or termination of this

                                       11

<PAGE>

Agreement, each party shall maintain in confidence all information and materials
disclosed or provided by the other including, without limitation, information
provided by either party to the other party hereto prior to the date hereof or
information that such party knows or has reason to know is a or contains trade
secret or other proprietary information relating to the business or properties
of the other party, or the business plans of the other party, and shall not use
such trade secrets or proprietary information for any purpose including, without
limitation, for the purpose of developing, manufacturing or selling products
except as permitted by this Agreement or disclose the same to anyone other than
those of its Affiliates, sublicensees, employees, consultants, agents or
subcontractors as are necessary in connection with such party's activities as
contemplated in this Agreement.

                           (b)      The Contractor shall maintain records and
results of Development on the same conditions of confidentiality as provided in
sub-section (a) above.

                  9.2.     Exceptions. The obligation of confidentiality
contained in this Agreement shall not apply to the extent that (A) either party
(the "RECIPIENT") is required to disclose information by order or regulation of
a governmental agency or a court of competent jurisdiction or (B) the Recipient
can demonstrate that (i) the disclosed information was at the time of such
disclosure by the Recipient already in the public domain or known in the
pharmaceutical or dietary and nutriceutical supplement industry other than as a
result of actions of the Recipient, its Affiliates, employees, licensees, or
subcontractors, in violation hereof, (ii) the disclosed information was
rightfully known by the Recipient or its Affiliates (as shown by its written
records) prior to the date of disclosure to the Recipient in connection with the
negotiation execution or performance of this Agreement; or (iii) the disclosed
information was received by the Recipient or its Affiliates on an unrestricted
basis from a source unrelated to any party to this Agreement and not under a
duty of confidentiality to the other party, or (C) disclosure is made to
Affiliates, sublicensees, employees, consultants, agents or subcontractors in
connection with the transactions contemplated by this Agreement, provided in the
case of item (A) of this Section 9.2 that Recipient gives written notice to the
other party (so that it may seek confidential treatment) and takes advantage of
any available protective provisions regarding such disclosures of confidential
information.

                  10.      Term and Termination.

                  10.1.    Term. This Agreement shall remain in effect until
***, unless terminated by the parties pursuant to Sections 10.2 or 10.3 below.
Notwithstanding the foregoing, the rights granted to e-nut under Sections 2.1,
2.2, and 2.3 above shall terminate with respect to a particular Product or
Additional Product upon the Abandonment of such Product or Additional Product;
provided however, that e-nut may continue to refer to such abandoned product in
its promotional or other materials (subject to Section 6).

                  10.2.    Termination by Mutual Agreement. This Agreement may
be terminated by the written agreement of the parties.

                  10.3.    Termination by Default. If either party materially
defaults in the performance of, or fails to be in material compliance with, any
material term, condition or covenant of this Agreement, the nondefaulting party
may terminate this Agreement if such

                                       12

<PAGE>

default or noncompliance shall not have been remedied, or steps shall not have
been initiated to remedy the same to the nondefaulting party's reasonable
satisfaction, within 30 days after receipt by the defaulting party of a written
notice thereof from the nondefaulting party.

                  10.4.    Effect of Termination or Material Breach.

                           (a) Mutual Agreement or e-nut Material Breach. In the
event of termination of this Agreement pursuant to this Section 10 by mutual
agreement or for a material breach by e-nut, e-nut and Skye shall have no rights
or obligations under this Agreement; provided that (a) Skye will have the right
to receive all payments accrued prior to the effective date of such termination
and the parties shall retain any other rights to indemnification or remedies for
breach of this Agreement they may otherwise have, and (b) e-nut may sell-off any
Product or Additional Product in its possession or control, or in the process of
being manufactured, subject to the royalty provisions of this Agreement.

                           (b) Skye Material Breach. In the event of a material
breach by Skye of this Agreement, if e-nut elects by written notice not to
terminate this Agreement, the license grant set forth in Section 2.3 shall
become royalty-free so that e-nut may continue to use the Skye Technology in
connection with development of Products or Additional Products.

                           (c) Skye Know-How. Upon termination of this Agreement
for any reason, e-nut shall have a non-exclusive, worldwide royalty-free license
to use the Skye Know-How directly related to the development of Products or
Additional Products (e.g., project data, studies, etc.) in connection with
e-nut's continued development and commercialization of such products following
the termination hereof.

                  10.5.    Survival. Notwithstanding any provision of this
Agreement to the contrary, the following Sections shall survive any termination
of this Agreement (except as limited by the terms of such sections): 3.4, 3.5,
4.1, 4.4, 8, 9, 10 and 11.

                  11.      Miscellaneous.

                  11.1.    Assignment. This Agreement and the licenses herein
granted shall be binding upon and shall inure to the benefit of the parties,
their Affiliates, successors and assigns.

                  11.2.    Agency. Neither party is, nor shall either party be
deemed to be, an employee, agent, co-venturer or legal representative of the
other party for any purpose. Neither party shall be entitled to enter into any
contracts in the name of, or on behalf of the other party.

                  11.3.    Entire Agreement. This Agreement constitutes the
entire agreement between the parties hereto with respect to the subject matter
hereof and supersedes all previous agreements, whether written or oral. This
Agreement shall not be changed or modified orally, but only by an instrument in
writing signed by both parties.

                  11.4.    Severability. If any provision of this Agreement is
declared invalid, illegal or unenforceable by a court of last resort or by any
court from the decision of which an appeal is not taken within the time provided
by law, then and in such event, this Agreement will

                                       13

<PAGE>

be deemed to have been terminated only as to the portion thereof which relates
to the provision invalidated by the decision and only in the relevant
jurisdiction, but this Agreement, in all other respects and all other
jurisdictions, will remain in force; provided, however, that if the provision so
invalidated is essential to the Agreement as a whole, then the parties shall
negotiate in good faith to amend the terms hereof as nearly as practical to
carry out the original interest of the parties. Each undertaking in this
Agreement shall be construed as a separate undertaking.

                  11.5.    Notices. Any legal notice or report required or
permitted to be given under this Agreement shall be in writing and shall be
mailed by certified mail, or facsimiled or delivered by courier, as follows and
shall be effective five days after such mailing or delivery or upon such
facsimile:

                             (a)    If to Skye:

                             SkyePharma PLC
                             105 Piccadilly
                             London, England, WIJ 7NJ
                             Attention: Donald Nicholson
                             Telecopier: +44-20-7491-3338

                             (b)    with a copy to:

                             Sullivan & Cromwell
                             St. Olave's House
                             9a Ironmonger Lane
                             London, England, EC2V 8EY
                             Attention: Kathryn A. Campbell, Esq.
                             Telecopier: +44-20-7710-6565, and

                             (c)    If to e-nut:

                             e-nutriceuticals Inc.
                             10 East 63rd Street

                             New York, NY 10021
                             Attention: Stephen P. Morris
                             Telecopier: +1 212 753 9053

                             (d)    with a copy to:

                             Bingham Dana LLP
                             399 Park Avenue

                             New York, NY 10022

                             Attention: Brian Beglin
                             Telecopier: +1-212-207-1200

                                       14

<PAGE>

                  or to such other addresses or facsimile number as either party
may notify to the other in accordance with the provisions of this section.

                  11.6.    Choice of Law. The validity, performance,
construction, and effect of this Agreement shall be governed by the laws of the
State of New York.

                  11.7.    Dispute Resolution. In the case of any disputes
between the parties arising from this Agreement, and in case this Agreement does
not provide a solution for how to resolve such disputes, the parties shall
discuss and negotiate in good faith a solution acceptable to both parties and in
the spirit of this Agreement. If after negotiating in good faith pursuant to the
foregoing sentence, the parties fail to reach agreement within thirty days then
the Chief Executive Officers or Chief Operating Officers of e-nut and of Skye
shall discuss in good faith an appropriate answer to the dispute. If these
executives fail, after good faith discussions, to reach an amicable agreement
within 30 days then the parties may seek relief in any state or federal court
located in the State of New York having jurisdiction thereof. Each of the
parties consents to the jurisdiction of such courts (and of the appropriate
appellate courts) and waives any objection to venue laid therein, including any
claim of forum nonconveniens in connection with any such claim. Process in any
such action or proceeding may be served on any party anywhere in the world and
the parties agree that mailing of process or other papers in connection with any
such action or proceeding in such manner as may be permitted by law shall be
valid and sufficient service thereof.

                  11.8.    Publicity. Both parties agree to issue mutual press
releases concerning their entry into this Agreement, with the content of such
releases to be approved in advance by both parties. In all other respects,
neither party shall use the name of the other party in any publicity release
without the prior written permission of such other party, which shall not be
unreasonably withheld. The other party shall have a reasonable opportunity to
review and comment on any such proposed publicity release. Except as required by
law, neither party shall publicly disclose the terms of this Agreement or issue
any publicity release with regard thereto unless expressly authorized to do so
by the other party, which authorization shall not be unreasonably withheld,
whereupon the parties will work together to develop a mutually acceptable
disclosure.

                  11.9.    Headings. The captions used herein are inserted for
convenience of reference only and shall not be construed to create obligations,
benefits, or limitations.

                  11.10.   Compliance. Each of the parties hereto agrees to
comply with all applicable laws and regulations in connection with the
execution, delivery and performance of its obligations under this Agreement.

                  11.11.   Further Assurances. Each party agrees to execute and
deliver, or cause to be executed and delivered, such further instruments and do
and cause to be done such further acts and things including, without limitation,
the filing of such assignments, agreements, documents and instruments, as may be
necessary or as the other party may reasonably request in connection with this
Agreement to carry out more effectively the provisions and purposes of this
Agreement.

                                       15

<PAGE>

                  11.12.   Remedies.

                           (a) Cumulative, Etc. Except as otherwise provided
herein, the parties agree that each remedy herein provided is cumulative and in
addition to any further remedies that may be provided by law or by any other
provisions herein.

                           (b) Specific Performance, Etc. The parties agree that
the rights and privileges hereunder are of a unique and special character and in
the event of a breach of any provision of this Agreement, the aggrieved party
will be without an adequate remedy at law. The parties therefore agree that in
the event of a breach of any provisions of this Agreement, the aggrieved party
may institute and prosecute proceedings in any court of competent jurisdiction
to enforce specific performance or to enjoin the continuing breach of such
provision, as well as to obtain damages for breach of this Agreement. By seeking
or obtaining any such relief, the aggrieved party will not be precluded from
seeking or obtaining any other relief to which it may be entitled.

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

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       16

<PAGE>

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

                                   E-NUTRICEUTICALS, INC.

                                   By______________________________
                                      Name:  S. P. Morris
                                      Title: Director

                                   SKYEPHARMA PLC

                                   By________________________________
                                      Name:  Donald Nicholson
                                      Title: Finance Director

                                       17

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