Document:

<PAGE>

                                                                    Exhibit 10.6

                          REGISTRATION RIGHTS AGREEMENT

                                 by and between

                                 RIBAPHARM INC.

                                       and

                            ICN PHARMACEUTICALS, INC.

                          Dated as of ___________, 2002
<PAGE>
                          REGISTRATION RIGHTS AGREEMENT

This REGISTRATION RIGHTS AGREEMENT is made and entered into as of ________,
2002, by and between ICN Pharmaceuticals, Inc., a Delaware corporation ("ICN"),
and Ribapharm Inc., a Delaware corporation and a wholly owned subsidiary of ICN
(the "Company"). Certain capitalized terms used herein are defined in Section 1
of this Agreement.

                                    RECITALS

            WHEREAS, the Board of Directors of ICN has determined that it would
be in the best interests of ICN and its stockholders to separate certain assets
and businesses from ICN;

            WHEREAS, ICN has caused the Company to be incorporated in order to
effect such separation;

            WHEREAS, ICN has, pursuant to resolutions of its Board of Directors
adopted on August 7, 2000, contributed to Ribapharm, certain assets, including
its nucleoside analog library and, subject to certain consents, the Exclusive
License and Supply Agreement between ICN and Schering-Plough Ltd. dated July 28,
1995, as amended;

            WHEREAS, Ribapharm has previously filed the IPO Registration
Statement (as herein defined) with the Securities and Exchange Commission but it
has not yet become effective;

            WHEREAS, immediately following the consummation of the IPO (as
herein defined), ICN will own in excess of 80% of the outstanding shares of
Common Stock (as defined below);

            WHEREAS, following the IPO, ICN intends to divest itself of its
entire ownership of the Company through one or more tax-free distributions to
the holders of ICN's common stock (the "Distribution"); and

            WHEREAS, in connection with the foregoing the Company has agreed to
provide the registration rights set forth in this Agreement.;

            NOW, THEREFORE, in consideration of the premises and the
representations, warranties, covenants and agreements herein contained, and for
other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, and intending to be legally bound hereby, the parties
hereby agree as follows:

1.          Certain Definitions. As used in this Agreement, the following terms
shall have the meanings ascribed to them below:
<PAGE>
            "Affiliate" means (i) with respect to any Person, any other Person
directly or indirectly controlling or controlled by or under direct or indirect
common control with such specified Person or (ii) with respect to any
individual, shall also mean the spouse or child of such individual; provided,
that neither the Company nor any Person controlled by the Company shall be
deemed to be an Affiliate of any Holder.

            "Business Day" means any day other than a Saturday, a Sunday, or a
day on which banking institutions located in the State of California are
authorized or obligated by law or executive order to close.

            "Certificate of Incorporation" means the Amended and Restated
Certificate of Incorporation of the Company, as amended.

            "Common Stock" means the Common Stock, par value $.01 per share, of
the Company and any equity securities issued or issuable with respect to the
Common Stock in connection with a reclassification, recapitalization, merger,
consolidation or other reorganization.

            "Common Stock Equivalents" means any securities convertible into, or
exercisable or exchangeable for, shares of Common Stock.

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

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

            "Holder" or "Holders" means ICN and, subject to Section 4.5(a), any
party who shall hereafter acquire and hold Registrable Securities.

            "IPO" means the initial public offering by ICN of shares of
Ribapharm Common Stock as contemplated by the IPO Registration Statement.

            "IPO Registration Statement" means the Registration Statement on
Form S-1, Registration No. 333-39350, of the Company, as supplemented and
amended from time to time.

            "Major Holder" means with respect to any registration statement the
Holder that, together with its Affiliates, includes the largest number of
Registrable Securities covered by that registration statement.

            "Person" means any individual, corporation, limited liability
company, limited or general partnership, joint venture, association, joint-stock
company, trust, unincorporated organization or government or any agency or
political subdivisions thereof.

                                       2
<PAGE>
            "Registrable Securities" means any (a) shares of Common Stock held
by ICN and (b) shares of Common Stock issued or issuable, directly or
indirectly, with respect to the Common Stock referenced in clause (a) above by
way of stock dividend, stock split or combination of shares. As to any
particular Registrable Securities, such securities shall cease to be Registrable
Securities when (A) a registration statement with respect to the sale of such
Registrable Securities shall have become effective under the Securities Act and
such Registrable Securities shall have been disposed of in accordance with such
registration statement; (B) such Shares shall have been sold to the public
pursuant to Rule 144 under the Securities Act (or any successor provision); (C)
such Registrable Securities shall have been otherwise transferred, new
certificates for them not bearing a legend restricting further transfer shall
have been delivered by the Company and subsequent public distribution of them
shall not require registration or qualification of them under the Securities Act
or any similar state law then in force; and (D) such Registrable Securities
shall have ceased to be outstanding.

            "Registration Rights Trigger Date" has the meaning set forth in
Section 2.1(a).

            "SEC" means the Securities and Exchange Commission.

            "Securities Act" means the Securities Act of 1933, as amended.

            "Service Agent" means (i) for ICN, The Corporation Trust Company,
with offices on the date hereof at 1209 Orange Street, Wilmington, County of New
Castle, Delaware 19801; and (ii) for the Company, The Corporation Trust Company,
with offices on the date hereof at 1209 Orange Street, Wilmington, County of New
Castle, Delaware 19801.

2.          Registration Rights.

            2.1.  Demand Registrations.

                  (a)   Subject to the terms and conditions of this Agreement,
at any time and from time to time after September 30, 2003 and the delivery
by ICN to the Company of a written notice pursuant to Section 3.4 of the
Affiliation and Distribution Agreement between the Company and ICN dated as of
________, 2002, that ICN no longer intends to proceed with or complete the
Distribution (the "Registration Rights Trigger Date"), the Holders shall have
the right to require the Company to file a registration statement under the
Securities Act covering all or any part of their Registrable Securities on six
(6) separate occasions in the aggregate, by delivering a written request
therefor to the Company specifying the number of Registrable Securities to be
included in such registration and the intended method of distribution thereof
(including, but not limited to, an underwritten offering). All such requests
pursuant to this Section 2.1(a) are referred to herein as "Demand Registration
Requests," and the registrations so requested are referred to herein as "Demand
Registrations" (with respect to any Demand Registration, the Holder making such
demand for registration being referred to as the "Initiating Holder"). As
promptly as practicable, but no later than ten days after receipt of a Demand

                                       3
<PAGE>
Registration Request, the Company shall give written notice (the "Demand
Exercise Notice") of such Demand Registration Request to all other Holders of
record of Registrable Securities.

                  (b)   The Company, subject to Sections 2.3 and 2.6, shall
include in a Demand Registration (x) the Registrable Securities of the
Initiating Holder and (y) the Registrable Securities of any other Holder which
shall have made a written request to the Company for inclusion in such
registration (which request shall specify the maximum number of Registrable
Securities intended to be disposed of by such Holder) within 10 days after the
receipt of the Demand Exercise Notice.

                  (c)   The Company shall, as expeditiously as possible, use its
reasonable best efforts to (x) effect such registration under the Securities Act
(including, without limitation, by means of a shelf registration pursuant to
Rule 415 under the Securities Act if so requested and if the Company is then
eligible to use such a registration) of the Registrable Securities which the
Company has been so requested to register, for distribution in accordance with
such intended method of distribution, and (y) if requested by ICN, if ICN is
participating in such registration, or if requested by the Initiating Holder, if
ICN is not participating in such registration, obtain acceleration of the
effective date of the registration statement relating to such registration.

                  (d)   The Demand Registration rights granted in Section 2.1(a)
to the Holders are subject to the following limitations: (i) with respect to any
registration in respect of a Demand Registration Request initiated by a
transferee of ICN, such registration statement must include shares of Common
Stock representing in excess of 20% of the Registrable Securities then
outstanding; (ii) the Company shall not be required to cause a registration
pursuant to Section 2.1(a) to be declared effective within a period of 180 days
after the effective date of any registration statement of the Company effected
in connection with a Demand Registration Request; and (iii) if the Board of
Directors of the Company, in its good faith judgment, determines that any
registration of Registrable Securities should not be made or continued because
it would (A) materially interfere with any material financing, acquisition,
corporate reorganization or merger or other transaction involving the Company or
any of its subsidiaries; or (B) require under applicable law disclosure of
material non-public information and such disclosure at that time would be
materially detrimental to the Company (each, a "Valid Business Reason"), the
Company may postpone filing a registration statement relating to a Demand
Registration Request, cause such registration statement to be withdrawn and its
effectiveness terminated or may postpone amending or supplementing such
registration statement until such Valid Business Reason no longer exists, but in
no event for more than three months (such period of postponement or withdrawal,
the "Postponement Period"); and the Company shall give written notice of its
determination to postpone or withdraw a registration statement and of the fact
that the Valid Business Reason for such postponement or withdrawal no longer
exists, in each case, promptly after the occurrence thereof; provided, however,
the Company shall not be permitted to postpone or withdraw a registration
statement after the expiration of any Postponement Period until six months

                                       4
<PAGE>
after the expiration of such Postponement Period without the prior written
approval of ICN.

                  (e)   If the Company shall give any notice of postponement or
withdrawal of any registration statement, the Company shall not, during the
period of postponement or withdrawal, register any Common Stock, other than
pursuant to a registration statement on Form S-4 or S-8 (or an equivalent
registration form then in effect). Each Holder of Registrable Securities agrees
that, upon receipt of any notice from the Company that the Company has
determined to withdraw any registration statement pursuant to clause (iii)
above, such Holder will discontinue its disposition of Registrable Securities
pursuant to such registration statement and, if so directed by the Company, will
deliver to the Company (at the Company's expense) all copies, other than
permanent file copies, then in such Holder's possession of the prospectus
covering such Registrable Securities that was in effect at the time of receipt
of such notice. If the Company shall have withdrawn or prematurely terminated a
registration statement filed under Section 2.1(a) (whether pursuant to Section
2.1(d)(iii) or as a result of any stop order, injunction or other order or
requirement of the SEC or any other governmental agency or court), the Company
shall not be considered to have effected an effective registration for the
purposes of this Agreement (including, without limitation, for purposes of
Section 2.1(c) above) until the Company shall have filed a new registration
statement covering the Registrable Securities covered by the withdrawn
registration statement and such registration statement shall have been declared
effective and shall not have been withdrawn. If the Company shall give any
notice of withdrawal or postponement of a registration statement, the Company
shall, at such time as the Valid Business Reason that caused such withdrawal or
postponement no longer exists (but in no event later than three months after the
date of the postponement or withdrawal), use its reasonable best efforts to
effect the registration under the Securities Act of the Registrable Securities
covered by the withdrawn or postponed registration statement in accordance with
this Section 2.1 (unless the Initiating Holder shall have withdrawn such
request, in which case the Company shall not be considered to have effected an
effective registration for the purposes of this Agreement, including, without
limitation, for purposes of Section 2.1(c) above).

                  (f)   The Company, subject to Sections 2.3 and 2.6, may elect
to include in any registration statement and offering made pursuant to Section
2.1(a), (i) authorized but unissued shares of Common Stock or shares of Common
Stock held by the Company as treasury shares and (ii) any other shares of Common
Stock which are requested to be included in such registration pursuant to the
exercise of piggyback rights granted by the Company after the date hereof which
are not inconsistent with the rights granted in, or otherwise conflict with the
terms of, this Agreement ("Additional Piggyback Rights") provided, however, that
such inclusion shall be permitted only to the extent that it is pursuant to and
subject to the terms of the underwriting agreement or arrangements, if any,
entered into by the Initiating Holder.

                                       5
<PAGE>
                  (g)   In connection with any Demand Registration that is an
underwritten offering, the Company shall have the right to designate the lead
managing underwriter, and subject to the next sentence, each other managing
underwriter for such registration; provided that, if ICN is participating in the
Demand Registration, each such other managing underwriter is reasonably
satisfactory to ICN, it being understood and agreed that any managing
underwriter that participates as a managing underwriter in the IPO shall be
satisfactory to ICN. If ICN is participating in the Demand Registration, ICN
shall have the right to designate one managing underwriter other than the lead
managing underwriter in any such registration, provided that such managing
underwriter selected by ICN is reasonably satisfactory to the Company, it being
understood and agreed that any managing underwriter that participates as a
managing underwriter in the IPO shall be satisfactory to the Company.

            2.2.  Piggyback Registrations.

                  (a)   If, at any time after the Registration Rights Trigger
Date, the Company proposes or is required to register any of its equity
securities under the Securities Act (other than pursuant to (i) registrations on
such form or similar form(s) solely for registration of securities in connection
with an employee benefit plan or dividend reinvestment plan or a merger,
consolidation or other business combination transaction or (ii) a Demand
Registration under Section 2.1) on a registration statement on Form S-1, Form
S-2 or Form S-3 (or an equivalent general registration form then in effect),
whether or not for its own account, the Company shall give prompt written notice
of its intention to do so to each of the Holders of record of Registrable
Securities. Upon the written request (the "Piggyback Request") of any such
Holder, made within 10 days following the receipt of any such written notice
(which request shall specify the maximum number of Registrable Securities
intended to be disposed of by such Holder and the intended method of
distribution thereof), the Company shall, subject to Sections 2.2(b), 2.3 and
2.6 hereof, use its reasonable best efforts to cause all Registrable Securities
covered by Piggyback Requests to be registered under the Securities Act (with
the securities which the Company at the time proposes to register) to permit the
sale or other disposition by the Holders (in accordance with the intended method
of distribution thereof) of the Registrable Securities to be so registered.
There is no limitation on the number of such piggyback registrations pursuant to
the preceding sentence which the Company is obligated to effect. No registration
effected under this Section 2.2(a) shall relieve the Company of its obligations
to effect Demand Registrations.

                  (b)   If, at any time after giving written notice of its
intention to register any equity securities and prior to the effective date of
the registration statement filed in connection with such registration, the
Company shall determine for any reason not to register or to delay registration
of such equity securities, the Company may, at its election, give written notice
of such determination to all Holders of record of Registrable Securities who
made timely Piggyback Requests and (i) in the case of a determination not to
register, shall be relieved of its obligation to register any Registrable
Securities in connection with such abandoned registration, without prejudice,
however, to the rights of

                                       6
<PAGE>
Holders under Section 2.1, and (ii) in the case of a determination to delay such
registration of its equity securities, shall be permitted to delay the
registration of such Registrable Securities for the same period as the delay in
registering such other equity securities.

                  (c)   Any Holder shall have the right to withdraw its
Piggyback Request by giving written notice to the Company of its request to
withdraw; provided, however, that (i) such request must be made in writing prior
to the earlier of the execution of the underwriting agreement or the execution
of the custody agreement with respect to such registration and (ii) such
withdrawal shall be irrevocable and, after making such withdrawal, a Holder
shall no longer have any right to include Registrable Securities in the
registration as to which such withdrawal was made.

            2.3.  Allocation of Securities Included in Registration Statement.

                  (a)   If any requested registration pursuant to Section 2.1
involves an underwritten offering and the lead managing underwriter of such
offering (the "Manager") shall advise the Company that, in its view, the number
of securities requested to be included in such registration by the Holders or
any other persons (including those shares of Common Stock requested by the
Company to be included in such registration) exceeds the largest number (the
"Section 2.1 Sale Number") that can be sold in an orderly manner in such
offering within a price range acceptable to the Initiating Holder, the Company
shall include in such registration:

                        (i)   all Registrable Securities requested in such
registration by Holders of Registrable Securities; provided, however, that, if
the number of such Registrable Securities exceeds the Section 2.1 Sale Number,
the number of such Registrable Securities (not to exceed the Section 2.1 Sale
Number) to be included in such registration shall be allocated on a pro rata
basis among all Holders requesting that Registrable Securities be included in
such registration, based on the number of Registrable Securities then owned by
each Holder requesting inclusion in relation to the number of Registrable
Securities owned by all Holders requesting inclusion;

                        (ii)  to the extent that the number of Registrable
Securities to be included by all Holders pursuant to clause (i) of this Section
2.3(a) is less than the Section 2.1 Sale Number, securities that the Company
proposes to register (up to the Section 2.1 Sale Number); and

                        (iii) to the extent that the number of Registrable
Securities to be included by all Holders and the number of securities to be
included by the Company is less than the Section 2.1 Sale Number, any other
securities that the holders thereof propose to register pursuant to the exercise
of Additional Piggyback Rights (up to the Section 2.1 Sale Number); provided
that if the number of securities requested to be registered pursuant to the
exercise of Additional Piggyback Rights exceeds the amount that may be
registered, the number of securities to be included shall be allocated in the

                                       7
<PAGE>
manner provided by the terms of the agreements providing for the Additional
Piggyback Rights.

                  If, as a result of the proration provisions of this Section
2.3(a), any Holder shall not be entitled to include all Registrable Securities
in a registration that such Holder has requested be included, such Holder may
elect to withdraw his request to include Registrable Securities in such
registration or may reduce the number requested to be included; provided,
however, that (x) such request must be made in writing prior to the earlier of
the execution of the underwriting agreement or the execution of the custody
agreement with respect to such registration and (y) such withdrawal shall be
irrevocable and, after making such withdrawal, a Holder shall no longer have any
right to include Registrable Securities in the registration as to which such
withdrawal was made.

                  (b)   If any registration pursuant to Section 2.2 involves an
underwritten offering and the Manager shall advise the Company that, in its
view, the number of securities requested to be included in such registration
exceeds the number (the "Section 2.2 Sale Number") that can be sold in an
orderly manner in such registration within a price range acceptable to the
Company, the Company shall include in such registration:

                        (i)   all Common Stock or securities convertible into,
or exchangeable or exercisable for, Common Stock that the Company proposes to
register for its own account (the "Company Securities");

                        (ii)  to the extent that the number of Company
Securities is less than the Section 2.2 Sale Number, the remaining shares to be
included in such registration (up to the Section 2.2 Sale Number) shall be
allocated on a pro rata basis among all Holders timely making a Piggyback
Request, based on the number of Registrable Securities then owned by each Holder
requesting inclusion in relation to the number of Registrable Securities owned
by all Holders requesting inclusion; and

                        (iii) to the extent the number of Company Securities
plus the number of Registrable Securities requested to be included by all
Holders is less than the Section 2.2 Sale Number, any other securities that the
holders thereof propose to register pursuant to the exercise of piggyback rights
(the "Additional Piggyback Rights") granted to them by the Company pursuant to
separate registration rights agreements after the date hereof (up to the Section
2.2 Sale Number); provided that if the number of securities requested to be
registered pursuant to the exercise of Additional Piggyback Rights exceeds the
amount that may be registered, the number of securities to be included shall be
allocated in the manner provided by the terms of the agreements providing for
the Additional Piggyback Rights.

            2.4.  Registration Procedures. If and whenever the Company is
required by the provisions of this Agreement to use its reasonable best efforts
to effect or cause the registration of any Registrable Securities under the
Securities Act as provided in this Agreement, the Company shall, as
expeditiously as possible:

                                       8
<PAGE>
                  (a)   prepare and file with the SEC a registration statement
on an appropriate registration form of the SEC for the disposition of such
Registrable Securities in accordance with the intended method of disposition
thereof, which form (i) shall be selected by the Company and (ii) shall, in the
case of a shelf registration, be available for the sale of the Registrable
Securities by the selling Holders thereof and such registration statement shall
comply as to form in all material respects with the requirements of the
applicable form and include all financial statements required by the SEC to be
filed therewith, and the Company shall use its reasonable best efforts to cause
such registration statement to become and remain effective for the time period
specified below; provided, however, that before filing a registration statement
or prospectus or any amendments or supplements thereto, or comparable statements
under securities or blue sky laws of any jurisdiction, the Company will furnish
to one counsel for the Holders participating in the planned registration
(selected by ICN, if ICN is participating in such registration, or, if ICN is
not participating in such registration, selected by the Initiating Holder in the
case of a registration pursuant to Section 2.1, or selected by the Major Holder,
in the case of a registration pursuant to Section 2.2) and the underwriters, if
any, copies of all such documents proposed to be filed (including all exhibits
thereto), which documents will be subject to the reasonable review and
reasonable comment of such counsel and the underwriters, and the Company shall
not file any registration statement or amendment thereto or any prospectus or
supplement thereto to which the Holders of a majority of the Registrable
Securities covered by such registration statement or the underwriters, if any,
shall reasonably object in writing;

                  (b)   prepare and file with the SEC such amendments and
supplements to such registration statement and the prospectus used in connection
therewith as may be necessary to keep such registration statement effective for
such period (which shall not be required to exceed 180 days in the case of a
registration pursuant to Section 2.1 or 120 days in the case of a registration
pursuant to Section 2.2) as any seller of Registrable Securities pursuant to
such registration statement shall request and to comply with the provisions of
the Securities Act with respect to the sale or other disposition of all
Registrable Securities covered by such registration statement in accordance with
the intended methods of disposition by the seller or sellers thereof set forth
in such registration statement;

                  (c)   furnish, without charge, to each seller of such
Registrable Securities and each underwriter, if any, of the securities covered
by such registration statement such number of copies of such registration
statement, each amendment and supplement thereto (in each case including all
exhibits), and the prospectus included in such registration statement (including
each preliminary prospectus) in conformity with the requirements of the
Securities Act, and other documents, as such seller and underwriter may
reasonably request in order to facilitate the public sale or other disposition
of the Registrable Securities owned by such seller (the Company hereby
consenting to the use in accordance with all applicable law of each such
registration statement (or amendment or post-effective amendment thereto) and
each such prospectus

                                       9
<PAGE>
(or preliminary prospectus or supplement thereto) by each such seller of
Registrable Securities and the underwriters, if any, in connection with the
offering and sale of the Registrable Securities covered by such registration
statement or prospectus);

                  (d)   use its reasonable best efforts to register or qualify
the Registrable Securities covered by such registration statement under such
other securities or "blue sky" laws of such jurisdictions as any sellers of
Registrable Securities or any managing underwriter, if any, shall reasonably
request, and do any and all other acts and things which may be reasonably
necessary or advisable to enable such sellers or underwriter, if any, to
consummate the disposition of the Registrable Securities in such jurisdictions,
except that in no event shall the Company be required to qualify to do business
as a foreign corporation in any jurisdiction where it would not, but for the
requirements of this paragraph (d), be required to be so qualified, to subject
itself to taxation in any such jurisdiction or to consent to general service of
process in any such jurisdiction;

                  (e)   promptly notify each Holder selling Registrable
Securities covered by such registration statement and each managing underwriter,
if any: (i) when the registration statement, any pre-effective amendment, the
prospectus or any prospectus supplement related thereto or post-effective
amendment to the registration statement has been filed and, with respect to the
registration statement or any post-effective amendment, when the same has become
effective; (ii) of any request by the SEC or state securities authority for
amendments or supplements to the registration statement or the prospectus
related thereto or for additional information; (iii) of the issuance by the SEC
of any stop order suspending the effectiveness of the registration statement or
the initiation of any proceedings for that purpose; (iv) of the receipt by the
Company of any notification with respect to the suspension of the qualification
of any Registrable Securities for sale under the securities or blue sky laws of
any jurisdiction or the initiation of any proceeding for such purpose; (v) of
the existence of any fact of which the Company becomes aware which results in
the registration statement, the prospectus related thereto or any document
incorporated therein by reference containing an untrue statement of a material
fact or omitting to state a material fact required to be stated therein or
necessary to make any statement therein not misleading; and (vi) if at any time
the representations and warranties contemplated by any underwriting agreement,
securities sale agreement, or other similar agreement, relating to the offering
shall cease to be true and correct in all material respects; and, if the
notification relates to an event described in clause (v), the Company shall
promptly prepare and furnish to each such seller and each underwriter, if any, a
reasonable number of copies of a prospectus supplemented or amended so that, as
thereafter delivered to the purchasers of such Registrable 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 in the light of the circumstances under which they were made
not misleading;

                  (f)   comply with all applicable rules and regulations of the
SEC, and make generally available to its security holders, as soon as reasonably
practicable after the effective date of the registration statement (and in any
event within 17 months thereafter),

                                       10
<PAGE>
an earnings statement (which need not be audited) covering the period of at
least twelve consecutive months beginning with the first day of the Company's
first calendar quarter after the effective date of the registration statement,
which earnings statement shall satisfy the provisions of Section 11(a) of the
Securities Act and Rule 158 thereunder;

                  (g)   cause all such Registrable Securities covered by such
registration statement to be listed on the principal securities exchange on
which similar securities issued by the Company are then listed (if any), if the
listing of such Registrable Securities is then permitted under the rules of such
exchange (including, for this purpose, the Nasdaq National Market);

                  (h)   enter into such customary agreements (including, if
applicable, an underwriting agreement) and take such other actions as ICN, if
ICN is participating in such registration, or, if ICN is not participating in
such registration, as the Initiating Holder, in the case of a registration
pursuant to Section 2.1, or as the Major Holder, in the case of a registration
pursuant to Section 2.2, shall reasonably request in order to expedite or
facilitate the disposition of such Registrable Securities. The Holders of the
Registrable Securities which are to be distributed by such underwriters shall be
parties to such underwriting agreement and may, at their option, require that
the Company make to and for the benefit of such Holders the representations,
warranties and covenants of the Company which are being made to and for the
benefit of such underwriters and which are of the type customarily provided to
institutional investors in secondary offerings;

                  (i)   use its reasonable best efforts to obtain an opinion
from the Company's counsel and a "cold comfort" letter from the Company's
independent public accountants in customary form and covering such matters as
are customarily covered by such opinions and "cold comfort" letters delivered to
underwriters in underwritten public offerings, which opinion and letter shall be
reasonably satisfactory to the underwriter, if any, and to ICN, if ICN is
participating in such registration, or, if ICN is not participating in such
registration, to the Initiating Holder, in the case of a registration pursuant
to Section 2.1, or to the Major Holder, in the case of a registration pursuant
to Section 2.2, and furnish to each Holder participating in the offering and to
each underwriter, if any, a copy of such opinion and letter addressed to such
Holder or underwriter;

                  (j)   deliver promptly to each Holder participating in the
offering and each underwriter, if any, copies of all correspondence between the
SEC and the Company, its counsel or auditors and all memoranda relating to
discussions with the SEC or its staff with respect to the registration
statement, other than those portions of any such memoranda which contain
information subject to attorney-client privilege with respect to the Company,
and, upon receipt of such confidentiality agreements as the Company may
reasonably request, make reasonably available for inspection by any seller of
such Registrable Securities covered by such registration statement, by any
underwriter, if any, participating in any disposition to be effected pursuant to
such registration statement and by any accountant or other agent retained by any
such seller or any such underwriter, all pertinent financial and other records,
pertinent corporate documents and properties of the

                                       11
<PAGE>
Company, and cause all of the Company's officers, directors and employees to
supply all information reasonably requested by any such seller, underwriter,
accountant or agent in connection with such registration statement;

                  (k)   use its reasonable best efforts to obtain the withdrawal
of any order suspending the effectiveness of the registration statement;

                  (l)   make reasonably available its employees and personnel
and otherwise provide reasonable assistance to the underwriters (taking into
account the needs of the Company's businesses and the requirements of the
marketing process) in the marketing of Registrable Securities in any
underwritten offering;

                  (m)   promptly prior to the filing of any document which is to
be incorporated by reference into the registration statement or the prospectus
(after the initial filing of such registration statement), provide copies of
such document to counsel (selected pursuant to Section 2.4(a)) for the selling
holders of Registrable Securities and to each managing underwriter, if any, and
make the Company's representatives reasonably available for discussion of such
document and make such changes in such document concerning the selling holders
prior to the filing thereof as such counsel or underwriters may reasonably
request;

                  (n)   furnish to ICN, if ICN is participating in such
registration, or, if ICN is not participating in such registration, to the
Initiating Holder, in the case of a registration pursuant to Section 2.1, or to
the Major Holder, in the case of a registration pursuant to Section 2.2, and the
managing underwriter, without charge, at least one signed copy, and to each
other Holder participating in the offering, without charge, at least one
photocopy of a signed copy, of the registration statement and any post-effective
amendments thereto, including financial statements and schedules, all documents
incorporated therein by reference and all exhibits (including those incorporated
by reference);

                  (o)   cooperate with the selling Holders of Registrable
Securities and the managing underwriter, if any, to facilitate the timely
preparation and delivery of certificates not bearing any restrictive legends
representing the Registrable Securities to be sold, and cause such Registrable
Securities to be issued in such denominations and registered in such names in
accordance with the underwriting agreement prior to any sale of Registrable
Securities to the underwriters or, if not an underwritten offering, in
accordance with the instructions of the selling Holders of Registrable
Securities at least three business days prior to any sale of Registrable
Securities and instruct any transfer agent and registrar of Registrable
Securities to release any stop transfer orders in respect thereof;

                  (p)   take all such other commercially reasonable actions as
are necessary or advisable in order to expedite or facilitate the disposition of
such Registrable Securities; and

                                       12
<PAGE>
                  (q)   take no direct or indirect action prohibited by
Regulation M under the Exchange Act; provided, however, that to the extent that
any prohibition is applicable to the Company, the Company will take such action
as is necessary to make any such prohibition inapplicable.

                  The Company may require as a condition precedent to the
Company's obligations under this Section 2.4 that each seller of Registrable
Securities as to which any registration is being effected furnish the Company
such information regarding such seller and the distribution of such securities
as the Company may from time to time reasonably request provided that such
information is necessary for the Company to consummate such registration and
shall be used only in connection with such registration.

                  Each Holder of Registrable Securities agrees that upon receipt
of any notice from the Company of the happening of any event of the kind
described in clause (v) of paragraph (e) of this Section 2.4, such Holder will
discontinue such Holder's disposition of Registrable Securities pursuant to the
registration statement covering such Registrable Securities until such Holder's
receipt of the copies of the supplemented or amended prospectus contemplated by
paragraph (e) of this Section 2.4 and, if so directed by the Company, will
deliver to the Company (at the Company's expense) all copies, other than
permanent file copies, then in such Holder's possession of the prospectus
covering such Registrable Securities that was in effect at the time of receipt
of such notice. In the event the Company shall give any such notice, the
applicable period mentioned in paragraph (b) of this Section 2.4 shall be
extended by the number of days during such period from and including the date of
the giving of such notice to and including the date when each seller of any
Registrable Securities covered by such registration statement shall have
received the copies of the supplemented or amended prospectus contemplated by
paragraph (e) of this Section 2.4.

            2.5.  Registration Expenses.

                  (a)   "Expenses" shall mean any and all fees and expenses
incident to the Company's performance of or compliance with this Article 2,
including, without limitation: (i) SEC, stock exchange or National Association
of Securities Dealers, Inc. ("NASD") registration and filing fees and all
listing fees and fees with respect to the inclusion of securities in Nasdaq
National Market, (ii) fees and expenses of compliance with state securities or
"blue sky" laws and in connection with the preparation of a "blue sky" survey,
including without limitation, reasonable fees and expenses of blue sky counsel,
(iii) printing and copying expenses, (iv) messenger and delivery expenses, (v)
expenses incurred in connection with any road show, (vi) fees and disbursements
of counsel for the Company, (vii) with respect to each registration, the fees
and disbursements of one counsel for the selling Holder(s) (selected by ICN, if
ICN is participating in such registration, or, if ICN is not participating in
such registration, selected by the Initiating Holder in the case of a
registration pursuant to Section 2.1, or selected by the Major Holder, in the
case of a registration pursuant to Section 2.2), (viii)

                                       13
<PAGE>
fees and disbursements of all independent public accountants (including the
expenses of any audit and/or "cold comfort" letter) and fees and expenses of
other persons, including special experts, retained by the Company, (ix) fees and
expenses payable to a Qualified Independent Underwriter (as such term is defined
in Rule 2720 of the NASD) to the extent a Qualified Independent Underwriter is
required and (x) any other fees and disbursements of underwriters, if any,
customarily paid by issuers or sellers of securities (collectively, "Expenses").

                  (b)   The Company shall pay all Expenses with respect to any
Demand Registration pursuant to Section 2.1 and any piggyback registrations
pursuant to Section 2.2.

                  (c)   Notwithstanding the foregoing, (x) the provisions of
this Section 2.5 shall be deemed amended to the extent necessary to cause these
expense provisions to comply with "blue sky" laws of each state in which the
offering is made and (y) in connection with any registration hereunder, each
Holder of Registrable Securities being registered shall pay all underwriting
discounts and commissions and any transfer taxes, if any, attributable to the
sale of such Registrable Securities, pro rata with respect to payments of
discounts and commissions in accordance with the number of shares sold in the
offering by such Holder, and (z) the Company shall, in the case of all
registrations under this Article 2, be responsible for all its internal expenses
(including, without limitation, all salaries and expenses of its officers and
employees performing legal or accounting duties).

            2.6.  Certain Limitations on Registration Rights. In the case of any
registration under Section 2.1 pursuant to an underwritten offering, or in the
case of a registration under Section 2.2 if the Company has determined to enter
into an underwriting agreement in connection therewith, all securities to be
included in such registration shall be subject to an underwriting agreement and
no person may participate in such registration unless such person agrees to sell
such Person's securities on the basis provided therein and completes and
executes all reasonable questionnaires, and other documents (including custody
agreements and powers of attorney) which must be executed in connection
therewith, and provides such other information to the Company or the underwriter
as may be necessary to register such Person's securities.

            2.7.  Limitations on Sale or Distribution of Other Securities.

                  (a)   Each Holder of Registrable Securities agrees that, (i)
to the extent requested in writing by a managing underwriter, if any, of any
registration effected pursuant to Section 2.1 or 2.2, not to sell, transfer or
otherwise dispose of, including any sale pursuant to Rule 144 under the
Securities Act, any Common Stock, or any other equity security of the Company or
any security convertible into or exchangeable or exercisable for any equity
security of the Company (other than as part of such underwritten public
offering) during the time period reasonably requested by the managing
underwriter, not to exceed 180 days (a "Lock-up"); provided, however, that

                                       14
<PAGE>
each Holder shall not be required to be subject to a Lock-up unless the Company
and its executive officers and directors are subject to a substantially similar
provision (except that the Company may effect any sale or distribution of any
such securities pursuant to a registration on Form S-4 (if reasonably acceptable
to such managing underwriter) or Form S-8, or any successor or similar form
which is then in effect or upon the conversion, exchange or exercise of any then
outstanding Common Stock Equivalent). The Company agrees to use its reasonable
best efforts to cause each holder of any equity security or any security
convertible into or exchangeable or exercisable for any equity security of the
Company sold or issued by the Company at any time hereafter other than in a
public offering to agree to be bound to a substantially similar Lock-up in the
event of an underwritten registration pursuant to Section 2.1 or 2.2.

                  (b)   The Company hereby agrees that, if it shall previously
have received a request for registration (other than a shelf registration)
pursuant to Section 2.1 or 2.2, and if such previous registration shall not have
been withdrawn or abandoned, the Company shall not sell, transfer, or otherwise
dispose of, any Common Stock, or any other equity security of the Company or any
security convertible into or exchangeable or exercisable for any equity security
of the Company (other than as part of such underwritten public offering, common
stock issued in connection with the acquisition of a business or assets, a
registration on Form S-4 or Form S-8 or any successor or similar form which is
then in effect or upon the conversion, exchange or exercise of any then
outstanding Common Stock Equivalent), until a period of 90 days shall have
elapsed from the effective date of such registration or such longer period (not
to exceed 180 days) as each Holder of Registrable Securities is required to
agree to pursuant to Section 2.7(a).

            2.8.  No Required Sale. Nothing in this Agreement shall be deemed to
create an independent obligation on the part of any Holder to sell any
Registrable Securities pursuant to any effective registration statement.

            2.9.  Indemnification.

                  (a)   In the event of any registration of any securities of
the Company under the Securities Act pursuant to this Article 2, the Company
will, and hereby does, indemnify and hold harmless, to the fullest extent
permitted by law, each Holder of Registrable Securities, its directors,
officers, fiduciaries, employees and stockholders or general and limited
partners (and the directors, officers, employees and stockholders thereof), each
other Person who participates as an underwriter or a Qualified Independent
Underwriter, if any, in the offering or sale of such securities, each officer,
director, employee, stockholder, fiduciary, managing director, agent,
affiliates, consultants, representatives, successors, assigns or partner of such
underwriter or Qualified Independent Underwriter, and each other Person, if any,
who controls such seller or any such underwriter within the meaning of the
Securities Act, against any and all losses, claims, damages or liabilities,
joint or several, actions or proceedings (whether commenced or threatened) and
expenses (including reasonable fees of counsel and any amounts paid in any
settlement effected with the Company's consent, which consent shall

                                       15
<PAGE>
not be unreasonably withheld or delayed) to which each such indemnified party
may become subject under the Securities Act or otherwise in respect thereof
(collectively, "Claims"), insofar as such Claims arise out of or are based upon
(i) any untrue statement or alleged untrue statement of a material fact
contained in any registration statement under which such securities were
registered under the Securities Act or 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, (ii) any untrue statement or alleged untrue
statement of a material fact contained in any preliminary, final or summary
prospectus or any amendment or supplement thereto, together with the documents
incorporated by reference therein, or the omission or alleged omission to state
therein a material fact required to be stated therein or necessary in order to
make the statements therein, in the light of the circumstances under which they
were made, not misleading, or (iii) any violation by the Company of any federal,
state or common law rule or regulation applicable to the Company and relating to
action required of or inaction by the Company in connection with any such
registration, and the Company will reimburse any such indemnified party for any
legal or other expenses reasonably incurred by such indemnified party in
connection with investigating or defending any such Claim as such expenses are
incurred; provided, however, that the Company shall not be liable to any such
indemnified party in any such case to the extent such Claim arises out of or is
based upon any untrue statement or alleged untrue statement of a material fact
or omission or alleged omission of a material fact made in such registration
statement or amendment thereof or supplement thereto or in any such prospectus
or any preliminary, final or summary prospectus in reliance upon and in
conformity with written information furnished to the Company by or on behalf of
such indemnified party specifically for use therein. Such indemnity and
reimbursement of expenses shall remain in full force and effect regardless of
any investigation made by as on behalf of such indemnified party and shall
survive the transfer of such securities by such seller.

                  (b)   Each Holder of Registrable Securities that are included
in the securities as to which any registration under Section 2.1 or 2.2 is being
effected (and, if the Company requires as a condition to including any
Registrable Securities in any registration statement filed in accordance with
Section 2.1 or 2.2, any underwriter and Qualified Independent Underwriter, if
any) shall, severally and not jointly, indemnify and hold harmless (in the same
manner and to the same extent as set forth in paragraph (a) of this Section 2.9)
to the extent permitted by law the Company, its officers and directors, each
Person controlling the Company within the meaning of the Securities Act and all
other prospective sellers and their respective directors, officers, fiduciaries,
managing directors, employees, agents, affiliates, consultants, representatives,
successors, assigns, general and limited partners, stockholders and respective
controlling Persons with respect to any untrue statement or alleged untrue
statement of any material fact in, or omission or alleged omission of any
material fact from, such registration statement, any preliminary, final or
summary prospectus contained therein, or any amendment or supplement thereto, if
such statement or alleged statement or omission or alleged omission was made in
reliance upon and in conformity with written information furnished to the
Company or its representatives by or on behalf of such Holder or underwriter or
Qualified Independent

                                       16
<PAGE>
Underwriter, if any, specifically for use therein and reimburse such indemnified
party for any legal or other expenses reasonably incurred in connection with
investigating or defending any such Claim as such expenses are incurred;
provided, however, that the aggregate amount which any such Holder shall be
required to pay pursuant to this Section 2.9(b) and Sections 2.9(c) and (e)
shall in no case be greater than the amount of the net proceeds received by such
person upon the sale of the Registrable Securities pursuant to the registration
statement giving rise to such claim. Such indemnity and reimbursement of
expenses shall remain in full force and effect regardless of any investigation
made by or on behalf of such indemnified party and shall survive the transfer of
such securities by such Holder.

                  (c)   Indemnification similar to that specified in the
preceding paragraphs (a) and (b) of this Section 2.9 (with appropriate
modifications) shall be given by the Company and each seller of Registrable
Securities with respect to any required registration or other qualification of
securities under any state securities and "blue sky" laws.

                  (d)   Any person entitled to indemnification under this
Agreement shall notify promptly the indemnifying party in writing of the
commencement of any action or proceeding with respect to which a claim for
indemnification may be made pursuant to this Section 2.9, but the failure of any
indemnified party to provide such notice shall not relieve the indemnifying
party of its obligations under the preceding paragraphs of this Section 2.9,
except to the extent the indemnifying party is materially prejudiced thereby and
shall not relieve the indemnifying party from any liability which it may have to
any indemnified party otherwise than under this Article 2. In case any action or
proceeding is brought against an indemnified party and it shall notify the
indemnifying party of the commencement thereof, the indemnifying party shall be
entitled to participate therein and, unless in the reasonable opinion of outside
counsel to the indemnified party a conflict of interest between such indemnified
and indemnifying parties may exist in respect of such claim, to assume the
defense thereof jointly with any other indemnifying party similarly notified, to
the extent that it chooses, with counsel reasonably satisfactory to such
indemnified party, and after notice from the indemnifying party to such
indemnified party that it so chooses, the indemnifying party shall not be liable
to such indemnified party for any legal or other expenses subsequently incurred
by such indemnified party in connection with the defense thereof other than
reasonable costs of investigation; provided, however, that (i) if the
indemnifying party fails to take reasonable steps necessary to defend diligently
the action or proceeding within 20 days after receiving notice from such
indemnified party that the indemnified party believes it has failed to do so; or
(ii) if such indemnified party who is a defendant in any action or proceeding
which is also brought against the indemnifying party reasonably shall have
concluded that there may be one or more legal defenses available to such
indemnified party which are not available to the indemnifying party; or (iii) if
representation of both parties by the same counsel is otherwise inappropriate
under applicable standards of professional conduct, then, in any such case, the
indemnified party shall have the right to assume or continue its own defense as
set forth above (but with no more than one firm of

                                       17
<PAGE>
counsel (selected by ICN, if ICN has participated in the applicable registration
and is an indemnified party, or, if ICN has not participated in the applicable
registration or is not an indemnified party, selected by the Initiating Holder
in the case of a registration pursuant to Section 2.1, or selected by the Major
Holder, in the case of a registration pursuant to Section 2.2) for all
indemnified parties in each jurisdiction, except to the extent any indemnified
party or parties reasonably shall have concluded that there may be legal
defenses available to such party or parties which are not available to the other
indemnified parties or to the extent representation of all indemnified parties
by the same counsel is otherwise inappropriate under applicable standards of
professional conduct) and the indemnifying party shall be liable for any
expenses therefor. No indemnifying party shall, without the written consent of
the indemnified party, effect the settlement or compromise of, or consent to the
entry of any judgment with respect to, any pending or threatened action or claim
in respect of which indemnification or contribution may be sought hereunder
(whether or not the indemnified party is an actual or potential party to such
action or claim) unless such settlement, compromise or judgment (A) includes an
unconditional release of the indemnified party from all liability arising out of
such action or claim and (B) does not include a statement as to or an admission
of fault, culpability or a failure to act, by or on behalf of any indemnified
party.

                  (e)   If for any reason the foregoing indemnity is unavailable
or is insufficient to hold harmless an indemnified party under Section 2.9(a),
(b) or (c), then each indemnifying party shall contribute to the amount paid or
payable by such indemnified party as a result of any Claim in such proportion as
is appropriate to reflect the relative fault of the indemnifying party, on the
one hand, and the indemnified party, on the other hand, with respect to such
offering of securities. The relative fault 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 the indemnified party and the
parties' relative intent, knowledge, access to information and opportunity to
correct or prevent such untrue statement or omission. If, however, the
allocation provided in the second preceding sentence is not permitted by
applicable law, then each indemnifying party shall contribute to the amount paid
or payable by such indemnified party in such proportion as is appropriate to
reflect not only such relative faults but also the relative benefits of the
indemnifying party and the indemnified party as well as any other relevant
equitable considerations. The parties hereto agree that it would not be just and
equitable if contributions pursuant to this Section 2.9(e) were to be determined
by pro rata allocation or by any other method of allocation which does not take
account of the equitable considerations referred to in the preceding sentences
of this Section 2.9(e). The amount paid or payable in respect of any Claim shall
be deemed to include any legal or other expenses reasonably incurred by such
indemnified party in connection with investigating or defending any such Claim.
No person guilty of fraudulent misrepresentation (within the meaning of Section
11(f) of the Securities Act) shall be entitled to contribution from any person
who was not guilty of such fraudulent misrepresentation. Notwithstanding
anything in this section 2.9(e) to the contrary, no indemnifying party (other
than the Company) shall be required pursuant to this section

                                       18
<PAGE>
2.9(e) to contribute any amount in excess of the net proceeds received by such
indemnifying party from the sale of Registrable Securities in the offering to
which the losses, claims, damages or liabilities of the indemnified parties
relate, less the amount of any indemnification payment made by such indemnifying
party pursuant to Sections 2.9(b) and (c).

                  (f)   The indemnity agreements contained herein shall be in
addition to any other rights to indemnification or contribution which any
indemnified party may have pursuant to law or contract and shall remain
operative and in full force and effect regardless of any investigation made or
omitted by or on behalf of any indemnified party and shall survive the transfer
of the Registrable Securities by any such party.

                  (g)   The indemnification and contribution required by this
Section 2.9 shall be made by periodic payments of the amount thereof during the
course of the investigation or defense, as and when bills are received or
expense, loss, damage or liability is incurred.

3.          Underwritten Offerings.

            3.1.  Requested Underwritten Offerings. If requested by the
underwriters for any underwritten offering by the Holders pursuant to a
registration requested under Section 2.1, the Company shall enter into a
customary underwriting agreement with the underwriters. Such underwriting
agreement shall be satisfactory in form and substance to the Initiating Holder
and shall contain such representations and warranties by, and such other
agreements on the part of, the Company and such other terms as are generally
prevailing in agreements of that type, including, without limitation,
indemnities and contribution agreements on substantially the same terms as those
contained herein. Any Holder participating in the offering shall be a party to
such underwriting agreement and may, at its option, require that any or all of
the representations and warranties by, and the other agreements on the part of,
the Company to and for the benefit of such underwriters shall also be made to
and for the benefit of such Holder and that any or all of the conditions
precedent to the obligations of such underwriters under such underwriting
agreement be conditions precedent to the obligations of such Holder; provided,
however, that the Company shall not be required to make any representations or
warranties with respect to written information specifically provided by a
selling Holder for inclusion in the registration statement. Such underwriting
agreement shall also contain such representations and warranties by the
participating Holders with respect to title and ownership of shares as are
customary in agreements of that type.

            3.2.  Piggyback Underwritten Offerings. In the case of a
registration pursuant to Section 2.2 hereof, if the Company shall have
determined to enter into an underwriting agreement in connection therewith, all
of the Holders' Registrable Securities to be included in such registration shall
be subject to such underwriting agreement. Any Holder participating in such
registration may, at its option, require that any or all of the representations
and warranties by, and the other agreements on the part of, the Company

                                       19
<PAGE>
to and for the benefit of such underwriters shall also be made to and for the
benefit of such Holder and that any or all of the conditions precedent to the
obligations of such underwriters under such underwriting agreement be conditions
precedent to the obligations of such Holder. Such underwriting agreement shall
also contain such representations and warranties by the participating Holders as
are customary in agreements of that type, on substantially the same terms as
those contained herein.

4.          General.

            4.1.  Rule 144. If the Company shall have filed a registration
statement pursuant to the requirements of Section 12 of the Exchange Act or a
registration statement pursuant to the requirements of the Securities Act in
respect of the Common Stock or securities of the Company convertible into or
exchangeable or exercisable for Common Stock, the Company covenants that (i) so
long as it remains subject to the reporting provisions of the Exchange Act, it
will timely file the reports required to be filed by it under the Securities Act
or the Exchange Act (including, but not limited to, the reports under Sections
13 and 15(d) of the Exchange Act referred to in subparagraph (c)(1) of Rule 144
under the Securities Act), and (ii) will take such further action as any Holder
of Registrable Securities may reasonably request, all to the extent required
from time to time to enable such Holder to sell Registrable Securities without
registration under the Securities Act within the limitation of the exemptions
provided by (A) Rule 144 under the Securities Act, as such Rule may be amended
from time to time, or (B) any similar rule or regulation hereafter adopted by
the SEC. Upon the request of any Holder of Registrable Securities, the Company
will deliver to such Holder a written statement as to whether it has complied
with such requirements.

            4.2.  Nominees for Beneficial Owners. If Registrable Securities are
held by a nominee for the beneficial owner thereof, the beneficial owner thereof
may, at its option, be treated as the Holder of such Registrable Securities for
purposes of any request or other action by any Holder or Holders of Registrable
Securities pursuant to this Agreement (or any determination of any number or
percentage of shares constituting Registrable Securities held by any Holder or
Holders of Registrable Securities contemplated by this Agreement), provided that
the Company shall have received assurances reasonably satisfactory to it of such
beneficial ownership.

            4.3.  Amendments and Waivers. The terms and provisions of this
Agreement may be modified or amended, or any of the provisions hereof waived,
temporarily or permanently, pursuant to the written consent of the Company and
ICN (without the consent of the other Holders of Registrable Securities);
provided, however, if ICN no longer holds any Registrable Securities, the
consent of the Holder of a majority of the then outstanding Registrable
Securities (and not ICN) would be required.

            4.4.  Notices. Except as otherwise provided in this Agreement, all
notices and other communications hereunder shall be in writing and shall be
delivered in person, by telecopy, by express or overnight mail delivered by a
nationally recognized air courier

                                       20
<PAGE>
(delivery charges prepaid), or by registered or certified mail (postage prepaid,
return receipt requested) to the respective parties as follows:

            (a)   If to ICN, to:

                  ICN Pharmaceuticals, Inc.
                  3300 Hyland Avenue
                  Costa Mesa, CA  92626
                  Attention:  Gregory Keever, Esq.

            (b)   If to the Company, to:

                  Ribapharm Inc.
                  3300 Hyland Avenue
                  Costa Mesa, CA  92626
                  Attention:  Roger D. Loomis, Esq.

or to such other address as the party to whom notice is given may have
previously furnished to the others in writing in the manner set forth above. Any
notice or communication delivered in person shall be deemed effective on
delivery or when delivery is refused. Any notice or communication sent by
telecopy or by air courier shall be deemed effective on the first Business Day
at the place at which such notice or communication is received following the day
on which such notice or communication was sent.

            4.5.  Miscellaneous.

                  (a)   This Agreement shall be binding upon and inure to the
benefit of and be enforceable by the parties hereto and the respective
successors, personal representatives and assigns of the parties hereto, whether
so expressed or not. If any Person shall acquire Registrable Securities from any
Holder, in any manner, whether by operation of law or otherwise, such transferee
shall promptly notify the Company and such Registrable Securities acquired from
such Holder shall be held subject to all of the terms of this Agreement, and by
taking and holding such Registrable Securities such Person shall be entitled to
receive the benefits of and be conclusively deemed to have agreed to be bound by
and to perform all of the terms and provisions of this Agreement. If the Company
shall so request, any such successor or assign shall agree in writing to acquire
and hold the Registrable Securities acquired from such Holder subject to all of
the terms hereof. If any Holder shall acquire additional Registrable Securities,
such Registrable Securities shall be subject to all of the terms, and entitled
to all the benefits, of this Agreement.

                  (b)   This Agreement (with the documents referred to herein or
delivered pursuant hereto) embodies the entire agreement and understanding
between the

                                       21
<PAGE>
parties hereto and supersedes all prior agreements and understandings relating
to the subject matter hereof.

                  (c)   The headings in this Agreement are for convenience of
reference only and shall not limit or otherwise affect the meaning hereof. All
section references are to this Agreement unless otherwise expressly provided.

                  (d)   This Agreement may be executed in any number of
counterparts, each of which shall be an original, but all of which together
shall constitute one instrument.

                  (e)   Any term or provision of this Agreement which is invalid
or unenforceable in any jurisdiction shall, as to such jurisdiction, be
ineffective to the extent of such invalidity or unenforceability without
rendering invalid or unenforceable the remaining terms and provisions of this
Agreement or affecting the validity or enforceability of any of the terms or
provisions of this Agreement in any other jurisdiction.

                  (f)   The parties hereto acknowledge that there would be no
adequate remedy at law if any party fails to perform any of its obligations
hereunder, and accordingly agree that each party, in addition to any other
remedy to which it may be entitled at law or in equity, shall be entitled to
injunctive relief, including specific performance, to enforce such obligations
without the posting of any bond, and, if any action should be brought in equity
to enforce any of the provisions of this Agreement, none of the parties hereto
shall raise the defense that there is an adequate remedy at law.

                  (g)   Each party hereto shall do and perform or cause to be
done and performed all such further acts and things and shall execute and
deliver all such other agreements, certificates, instruments, and documents as
any other party hereto reasonably may request in order to carry out the intent
and accomplish the purposes of this Agreement and the consummation of the
transactions contemplated hereby.

            4.6.  No Inconsistent Agreements. Without the prior written consent
of ICN, if ICN holds Registrable Securities, or the consent of the Holder of a
majority of the then outstanding Registrable Securities, if ICN no longer holds
any Registrable Securities, neither the Company nor any Holder will, on or after
the date of this Agreement, enter into any agreement with respect to its
securities which is inconsistent with the rights granted in this Agreement or
otherwise conflicts with the provisions hereof. The Company further agrees that
if any other registration rights agreement entered into after the date of this
Agreement with respect to any of its securities contains terms which are more
favorable to, or less restrictive on, the other party thereto than the terms and
conditions contained in this Agreement are (insofar as they are applicable) to
ICN and its transferees, then the terms and conditions of this Agreement shall
immediately be deemed to have been amended without further action by the Company
or any of the holders of

                                       22
<PAGE>
Registrable Securities so that ICN and its transferees shall be entitled to the
benefit of any such more favorable or less restrictive terms or conditions.

            4.7.  Effective Time and Termination. This Agreement shall become
effective upon the time of purchase of the Firm Shares, as defined in the
Underwriting Agreement, by and among ICN, Ribapharm and the underwriters named
therein, dated            , 2002 relating to the IPO and shall terminate upon
the earlier to occur of (a) seven (7) years after the date hereof, and (b) the
date the number of Registrable Securities then outstanding first represents less
than 20% of the number of Registrable Securities outstanding on the date hereof.

            4.8.  Governing Law. This Agreement shall be governed by and
construed in accordance with the laws of the State of California (without giving
effect to the conflict of laws principals thereof) as to all matters, including
matters of validity, construction, effect, performance and remedies.

                                       23
<PAGE>
            IN WITNESS WHEREOF, the parties hereto have duly executed this
agreement as of the date first above written.

                                            RIBAPHARM INC.

                                            By:
                                            ------------------------------------
                                            Name:
                                            Title:

                                            ICN PHARMACEUTICALS, INC.

                                            By:
                                            ------------------------------------
                                            Name:
                                            Title:

                                       24<PAGE>

                                                                    EXHIBIT 10.7

                              TAX SHARING AGREEMENT

                                       BY

                            ICN PHARMACEUTICALS, INC.

                                       AND

                                 RIBAPHARM INC.
<PAGE>
                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                            PAGE
<S>                                                                         <C>
SECTION 1.  Definition of Terms

SECTION 2.  Allocation of Income Tax Liabilities

SECTION 3.  Preparation and Filing of Tax Returns

SECTION 4.  Refunds, Carrybacks and Tax Benefits

SECTION 5.  Tax Payments and Intercompany Billings

SECTION 6.  Assistance and Cooperation

SECTION 7.  Tax Records

SECTION 8.  Tax Contests

SECTION 9.  No Inconsistent Actions

SECTION 10. Survival of Obligations
SECTION 11. Employee Matters
SECTION 12. Treatment of Payments; Tax Gross Up

SECTION 13. Disagreements

SECTION 14. Late Payments

SECTION 15. Expenses

SECTION 16. General
</TABLE>
<PAGE>
                              TAX SHARING AGREEMENT

      This Agreement is entered into as of [date] by ICN Pharmaceuticals, Inc.,
a Delaware corporation ("ICN"), and RIBAPHARM Inc., a Delaware corporation
("RIBAPHARM"). Capitalized terms used in this Agreement are defined herein.
Unless otherwise indicated, all "Section" references in this Agreement are to
sections of this Agreement.

                                    RECITALS

      WHEREAS, the board of directors of ICN has determined that it would be in
the best interests of ICN and its stockholders to completely separate the
Biotechnology Business from ICN;
      WHEREAS, ICN has caused RIBAPHARM to be incorporated in order to effect
such separation;

      WHEREAS, ICN has contributed and transferred to RIBAPHARM, and RIBAPHARM
has received and assumed, the assets and liabilities then associated with the
Biotechnology Business;
      WHEREAS, ICN and RIBAPHARM intend that the contribution of the assets and
liabilities associated with the Biotechnology Business qualified as a tax-free
transfer under Section 351 or 368(a)(1)(D) of the Code;
      WHEREAS, ICN currently owns all of the issued and outstanding RIBAPHARM
common stock;

      WHEREAS, ICN and RIBAPHARM currently contemplate that ICN will make an
initial public offering of an amount of its RIBAPHARM common stock that will
reduce ICN's ownership of stock in RIBAPHARM to not less than 80% of the
combined voting power and value of all outstanding RIBAPHARM stock;
      WHEREAS, ICN currently contemplates that, following such initial public
offering, and subject to the satisfaction of certain conditions, ICN will
distribute to the holders of its common stock on a pro rata basis all of the
shares of RIBAPHARM common stock owned by ICN;
                                      -1-
<PAGE>
      WHEREAS, ICN and RIBAPHARM intend that the Distribution will be tax-free
to ICN and its stockholders under Section 355 of the Code;

      WHEREAS, as a result of the Distribution, RIBAPHARM will cease to be a
member of the affiliated group of which ICN is the common parent, effective as
of the Distribution Date; and

      WHEREAS, ICN and RIBAPHARM desire to provide for and agree upon the
allocation between the parties of liabilities for Taxes arising prior to, as a
result of, and subsequent to the Distribution, and to provide for and agree upon
other matters relating to Taxes;

      NOW, THEREFORE, in consideration of the premises and the representations,
warranties, covenants and agreements herein contained, and for other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, and intending to be legally bound hereby, the parties hereby agree
as follows:

SECTION 1. DEFINITION OF TERMS.

For purposes of this Agreement (including the recitals hereof), the following
terms have the following meanings:

      "ACCOUNTING CUTOFF DATE" means, with respect to RIBAPHARM, any date as of
the end of which there is a closing of its financial accounting records.

      "ADJUSTMENT REQUEST" means any formal or informal claim or request filed
with any Tax Authority, or with any administrative agency or court, for the
adjustment, refund, or credit of Taxes, including (a) any amended Tax Return
claiming adjustment to the Taxes as reported on the Tax Return, or if
applicable, as previously adjusted, or (b) any claim for refund or credit of
Taxes previously paid.

      "AFFILIATE" means any entity that directly or indirectly is "controlled"
by the person or entity in question. "Control" means the possession, directly or
indirectly, of the power to direct or cause the direction of the management and
policies of a person, whether through ownership of

                                      -2-
<PAGE>
voting securities, by contract or otherwise. Except as otherwise provided
herein, the term Affiliate shall refer to Affiliates of a person as determined
immediately after the Distribution.

      "AFFILIATION AND DISTRIBUTION AGREEMENT" means the Affiliation and
Distribution Agreement between ICN and RIBAPHARM dated [date].
      "AGREEMENT" means this Tax Sharing Agreement.
      "APPLICATION FOR RULING" means the letter filed by ICN requesting a
private letter ruling from the Internal Revenue Service regarding the tax
consequences of the Distribution.
      "BIOTECHNOLOGY BUSINESS" means the biotechnology business conducted by
RIBAPHARM that previously was conducted as a division of ICN.
      "CARRYBACK" or "CARRYFORWARD" means any net operating loss, net capital
loss, excess tax credit, foreign tax credit or other similar Tax Item which may
or must be carried from one Tax Period to another Tax Period under the Code or
other applicable Tax Law.

      "CODE" means the U.S. Internal Revenue Code of 1986, as amended from time
to time, or any successor law.

      "COMPANY" means ICN or RIBAPHARM, as the context requires.

      "CONSOLIDATED INCOME TAX RETURN" OR "COMBINED INCOME TAX RETURN" means any
Tax Return relating to Income Tax which is computed by reference to the assets
and activities of members of the ICN Group (other than members of the RIBAPHARM
Group) and the RIBAPHARM Group.

      "CONSOLIDATED PERIOD" or "CONSOLIDATED PERIODS" means any taxable period
or periods between the Contribution Date and the Distribution Date, during which
time RIBAPHARM is a member of the ICN Group.

      "CONTRIBUTION" has the meaning set forth in the Affiliation and
Distribution Agreement.
      "CONTRIBUTION DATE" means the date of the Contribution.

                                      -3-
<PAGE>
      "DISTRIBUTION" means the distribution of RIBAPHARM common stock by ICN in
one or more transactions occuring after the Initial Public Offering that
collectively have the effect that all shares of RIBAPHARM common stock held by
ICN are distributed to ICN stockholders.

      "DISTRIBUTION DATE" means any date or dates, as the case may be,
determined by ICN, in its sole and absolute discretion, to be a date on which
shares of RIBAPHARM common stock held by ICN are distributed in connection with
the Distribution.

      "FEDERAL INCOME TAX" means any Income Tax imposed by the United States
government.

      "FOREIGN INCOME TAX" means any Income Tax imposed by any foreign country
or any possession of the United States, or by any political subdivision of any
foreign country or United States possession, which is an income tax as defined
in Treasury Regulation Section 1.901-2.

      "GROUP" means the ICN Group or the RIBAPHARM Group, as the context
requires.

      "ICN AFFILIATE" has the meaning set forth in the Affiliation and
Distribution Agreement.

      "ICN FEDERAL CONSOLIDATED RETURN" means any United States federal
Consolidated Income Tax Return for the affiliated group (as that term is defined
in Code Section 1504) that includes ICN as the common parent and that includes,
during the Consolidated Periods, the RIBAPHARM Group.
      "ICN GROUP" means all corporations included in the ICN Federal
Consolidated Income Tax Return.
      "INCOME TAX" means all Taxes (i) based upon, measured by, or calculated
with respect to, net income or net receipts, proceeds or profits or (ii) based
upon, measured by, or calculated with respect to multiple bases (including, but
not limited to, corporate franchise and occupation Taxes) if such Tax may be
based upon, measured by, or calculated with respect to one or more bases
described in clause (i) above.

      "INITIAL PUBLIC OFFERING" has the meaning set forth in the Affiliation and
Distribution Agreement.

                                      -4-
<PAGE>
      "INTERNAL REVENUE SERVICE" OR "IRS" means the United States Internal
Revenue Service or the United States Department of the Treasury, as the context
requires.

      "IRS PRIVATE LETTER RULING" means the private letter ruling issued by the
IRS in response to the Application for Ruling.

      "OTHER TAX" means any Tax that is not an Income Tax.

      "PAYMENT DATE" means (i) with respect to any ICN Federal Consolidated
Return, the due date for any required installment of estimated taxes determined
under Code Section 6655, the due date (determined without regard to extensions)
for filing the return determined under Code Section 6072, and the date the
return is filed, and (ii) with respect to any Consolidated or Combined State
Income Tax Return, the corresponding dates determined under the applicable Tax
Law.

      "POST-DISTRIBUTION PERIOD" means any Tax Period beginning after the
Distribution Date, and, in the case of any Straddle Period, the portion of such
Straddle Period beginning the day after the Distribution Date.

      "PRE-DISTRIBUTION PERIOD" means any Tax Period ending on or before the
Distribution Date, and, in the case of any Straddle Period, the portion of such
Straddle Period ending on the Distribution Date.

      "PRIME RATE" means the base rate on corporate loans charged by Citibank,
N.A., New York, New York from time to time, compounded on each March 31, June
30, September 30 and December 31.

      "RESPONSIBLE COMPANY" means, with respect to any Tax Return, the Company
having responsibility for preparing and filing such Tax Return under this
Agreement.

      "RESTRUCTURING TAX" means the Taxes described in clauses (ii) and (iii) of
Section 2.5(a).

      "RIBAPHARM GROUP" means RIBAPHARM and all corporations included in the
RIBAPHARM Federal Consolidated Return, or, during any Consolidated Period, that
would be

                                      -5-
<PAGE>
included in such Return if RIBAPHARM were not included in the ICN Federal
Consolidated Return.

      "RIBAPHARM FEDERAL CONSOLIDATED RETURN" means any United States federal
Income Tax Return or Returns in respect of periods after the Consolidated Period
filed by RIBAPHARM alone or for the affiliated group (as that term is defined in
Code Section 1504) that includes RIBAPHARM as the common parent.
      "SEPARATE COMPANY TAX" means any Tax computed by reference solely to the
assets and activities of a member or members of a single Group.
      "STRADDLE PERIOD" means any Tax Period that begins on or before and ends
after the Distribution Date.

      "STATE INCOME TAX" means any Income Tax imposed by any State of the United
States or by any political subdivision of any such State.

      "TAINTING ACT" shall have the meaning provided in Section 9.

      "TAX" or "TAXES" means any income, gross income, gross receipts, profits,
capital stock, franchise, withholding, payroll, social security, workers
compensation, unemployment, disability, property, ad valorem, stamp, excise,
severance, occupation, service, sales, use, license, lease, transfer, import,
export, value added, alternative minimum, estimated or other similar tax
(including any fee, assessment, or other charge in the nature of or in lieu of
any tax) imposed by any governmental entity or political subdivision thereof,
and any interest, penalties, additions to tax, or additional amounts in respect
of the foregoing.

      "TAX AUTHORITY" means, with respect to any Tax, the governmental entity or
political subdivision thereof that imposes such Tax, and the agency (if any)
charged with the collection of such Tax for such entity or political
subdivision.

      "TAX BENEFIT" means any refund of, credit against, or other reduction in
otherwise required Tax payments (including any reduction in estimated tax
payments) and any interest in

                                      -6-
<PAGE>
respect of the foregoing, net of the effect on otherwise required Tax payments
of any associated or corresponding item of income or gain, or other increase in
otherwise required Tax payments.

      "TAX CONTEST" means an audit, review, examination, or any other
administrative or judicial proceeding with the purpose or effect of
redetermining Taxes of any of the Companies or their Affiliates (including any
administrative or judicial review of any claim for refund).
      "TAX ITEM" means, with respect to any Income Tax, any item of income,
gain, loss, deduction, or credit or other item that has the effect of increasing
or decreasing the amount of any Income Tax payable.
      "TAX LAW" means the law of any governmental entity or political
subdivision thereof relating to any Tax.

      "TAX OPINION" means the opinion of counsel selected by ICN, in its sole
discretion, confirming in form and substance reasonably satisfactory to ICN,
that no income, gain or loss for U.S. federal income tax purposes will be
recognized by ICN, the stockholders or former stockholders of ICN, or any ICN
Affiliate with respect to the Distribution, and following the receipt of which
ICN may, pursuant to Section 3.1 of the Affiliation and Distribution Agreement,
complete the Distribution.

      "TAX OPINION SUBMISSION" means any and all information, including any
representation or material fact, submitted to counsel in connection with the Tax
Opinion.

      "TAX PERIOD" means, with respect to any Tax, the period for which the Tax
is reported as provided under the Code or other applicable Tax Law.

      "TAX RECORDS" means Tax Returns, Tax Return workpapers, documentation
relating to any Tax Contest, and any other books of account or records required
to be maintained under the Code or other applicable Tax Laws or under any record
retention agreement with any Tax Authority.

      "TAX RETURN" means any report of Taxes due (including any report of
estimated tax payments), any claims for refund of Taxes paid, any information
return with respect to Taxes, or

                                      -7-
<PAGE>
any other similar report, statement, declaration, or document required to be
filed under the Code or other Tax Law, including any attachments, exhibits, or
other materials submitted with any of the foregoing, and including any
amendments or supplements to any of the foregoing.

      "TRANSACTIONS" means the transactions contemplated by the Affiliation and
Distribution Agreement, including the Contribution, the Initial Public Offering
and the Distribution.

      "TREASURY REGULATIONS" means the regulations promulgated from time to time
under the Code as in effect for the relevant Tax Period.

SECTION 2. ALLOCATION OF INCOME TAX LIABILITIES.

      2.1. General Rule

      (a) ICN Liability. ICN shall indemnify and hold harmless the RIBAPHARM
Group from and against any liability for Taxes for which ICN is liable under
this Section 2.

      (b) RIBAPHARM Liability. RIBAPHARM shall indemnify and hold harmless the
ICN Group other than members of the RIBAPHARM Group from and against any
liability for Taxes for which RIBAPHARM is liable under this Section 2.

      2.2 Federal Income Tax. Except as otherwise provided in this Agreement,
Federal Income Tax liability shall be allocated as follows:
            (a) Consolidated Period. For each Consolidated Period, RIBAPHARM
shall be liable for and pay to ICN an amount equal to the Federal Income Tax
determined under the "Stand Alone Method." Under this method RIBAPHARM's
liability for Tax for any Taxable Period is computed as if, since the
Contribution Date, RIBAPHARM had (i) never been part of the ICN Group and (ii)
filed a consolidated Federal Income Tax Return as parent of the RIBAPHARM Group
with each eligible member of that Group; provided, however, that the provisions
of Section 2.6(a) regarding special rules for application of the Stand Alone
Method shall apply. ICN shall be liable for all Federal Income Tax for the
Consolidated Period other than amounts for which RIBAPHARM is liable pursuant to
this Section 2.2(a).

                                      -8-
<PAGE>
            (b) Non-Consolidated Periods. With respect to all periods which are
not Consolidated Periods, RIBAPHARM shall be responsible for all Federal Income
Tax imposed on members of the RIBAPHARM Group, and ICN shall be responsible for
all Federal Income Tax imposed on members of the ICN Group.

      2.3. State and Foreign Income Taxes. Except as otherwise provided in this
Agreement, State and Foreign Income Tax liability shall be allocated as follows:

            (a) Consolidated or Combined State and Foreign Income Taxes.
RIBAPHARM shall be liable for and pay to ICN any State or Foreign Income Tax
with respect to any Consolidated or Combined State or Foreign Income Tax Return
in an amount that is equal to the amount determined under the Stand Alone Method
for the period covered by such Tax Return; provided, however, that RIBAPHARM's
State Income Tax liability shall be calculated taking into account ICN's
worldwide apportionment schedule, where applicable. ICN shall be liable for and
pay any State or Foreign Income Tax with respect to any Consolidated or Combined
State or Foreign Income Tax Return other than the amount for which RIBAPHARM is
liable pursuant to this Section 2.3(a).

            (b) Separate Company Taxes. In the case of any State or Foreign
Income Tax which is a Separate Company Tax, RIBAPHARM shall be liable for and
shall pay any such Separate Company Tax imposed under Tax Law on any member of
the RIBAPHARM Group and ICN shall be liable for and shall pay any such Separate
Company Tax imposed on any member of the ICN Group other than a member of the
RIBAPHARM Group.

      2.4 Other Taxes. Except as otherwise provided in this Agreement, RIBAPHARM
shall be liable to and pay the applicable Tax Authority any Other Tax that is
imposed on any member of the RIBAPHARM Group and ICN shall be liable to and pay
the applicable Tax Authority any Other Tax that is imposed on any member of the
ICN Group other than a member of the RIBAPHARM Group.

      2.5. Transaction Taxes.

                                      -9-
<PAGE>
            (a) General. Except as otherwise provided in this Section 2.5, ICN
shall be responsible for and pay, and shall indemnify and hold harmless the
RIBAPHARM Group from and against any liability for, any and all Taxes resulting
from the Transactions. This shall include but not be limited to (i) any sales
and use, gross receipts, or other transfer Taxes imposed on the transfers
occurring pursuant to the Transactions; (ii) any Tax resulting from any income
or gain recognized under Treasury Regulation Sections 1.1502-13 or 1.1502-19 (or
any corresponding provisions of other applicable Tax Laws) as a result of the
Transactions; and (iii) , except as otherwise provided in Section 2.5(b), any
Tax resulting from any income or gain recognized as a result of any of the
Transactions failing to qualify for tax-free treatment under Code Sections 332,
351, 355, 361, or other provisions of the Code (as contemplated in the IRS
Private Letter Ruling or the Tax Opinion) or corresponding provisions of other
applicable Tax Laws.

            (b) Inconsistent Acts and Events. Notwithstanding the provisions of
Section 2.5(a), RIBAPHARM shall be liable for, and shall indemnify and hold
harmless ICN from and against any liability for, any Restructuring Tax to the
extent arising from (i) any breach by RIBAPHARM of the representations or
covenants under Section 9, (ii) any Tainting Act performed by RIBAPHARM, (iii)
the inaccuracy of any factual statements or representations made by RIBAPHARM to
ICN or to the IRS in connection with the IRS Private Letter Ruling or the Tax
Opinion, but only to the extent such inaccuracy arises from facts in existence
prior to the Distribution Date or (iv) any Section 355(e) Event with respect to
RIBAPHARM. A Section 355(e) Event with respect to RIBAPHARM will occur if
Section 355(e) of the Code applies to the Distribution as a result of one or
more persons acquiring directly or indirectly stock of RIBAPHARM representing a
50% or greater interest in RIBAPHARM within the meaning of Section 355(e).

      2.6. Calculation of Tax Liability.

                                      -10-
<PAGE>
            (a) Stand Alone Method. The following rules shall apply for purposes
of computing RIBAPHARM's liability under the Stand Alone Method: (i)
transactions during any Consolidated Period between a member of the RIBAPHARM
Group and a member of the ICN Group that is not a member of the RIBAPHARM Group
shall, for Federal Income Tax purposes, be accounted for pursuant to the
provisions of the regulations under IRC Section 1502 that govern intercompany
transactions (and to the extent appropriate for State or Foreign Income Tax
purposes, similar rules shall apply in the case of transactions between such
members which are included in State or Foreign Consolidated or Combined Income
Tax Returns); (ii) during Consolidated Periods all computations shall be made in
conformity with the positions, elections and accounting methods used by ICN in
preparing the consolidated returns of the ICN Group; (iii) the highest marginal
tax rate to which the RIBAPHARM Group could be subject under applicable Tax Law
shall be deemed to be the only Tax rate to which such group is subject under
such law; and (iv) subject to (i) through (iii) above, all computations and
other determinations shall be made in accordance with the the laws and
regulations applying to affiliated groups filing consolidated returns
(including, in the case of any company that becomes or ceases to be a member of
any Group, the laws and regulations applicable to a company that becomes or
ceases to be a member of a such Group), as well as all other relevant federal
Tax laws and regulations (and similar rules shall apply in the case of State or
Foreign Taxes in respect to Consolidated or Combined Returns for such Taxes).
            (b) The principles of Treasury Regulation Section 1.1502-76(b) as
reasonably interpreted, agreed and applied by the Companies shall apply in
determining whether a Tax Item is attributable to a Tax Period provided that (x)
no election shall be made under Treasury Regulation Section 1.1502-76(b)(2)(ii)
(relating to ratable allocation of a year's items) and (y) if the Distribution
Date is not an Accounting Cutoff Date, the provisions of Treasury Regulation
Section 1.1502-76(b)(2)(iii) will be applied to ratably allocate the items
(other than extraordinary items) for the month which includes the Distribution
Date.

                                      -11-
<PAGE>
            (c) In determining the apportionment of Tax Items between
Pre-Distribution Periods and Post-Distribution Periods, any Tax Items relating
to the Transactions shall be treated as an extraordinary item described in
Treasury Regulation Section 1.1502-76(b)(2)(ii)(C) and shall be allocated to
Pre-Distribution Periods, and any Taxes related to such items shall be treated
under Treasury Regulation Section 1.1502-76(b)(2)(iv) as relating to such
extraordinary item and shall be allocated to Pre-Distribution Periods.

      2.7. Tax Payments and Intercompany Billings. Each Company shall pay the
Taxes allocated to it by this Section 2 either to the applicable Taxing
Authority or to the other Company in accordance with Section 5.

SECTION 3. PREPARATION AND FILING OF TAX RETURNS.

      3.1. General. Except as otherwise provided in this Section 3, Tax Returns
shall be prepared and filed when due (including extensions) by the person
obligated to file such Tax Returns under the Code or applicable Tax Law. The
Companies shall provide, and shall cause their Affiliates to provide, assistance
and shall cooperate with one another in accordance with Section 6 with respect
to the preparation and filing of Tax Returns, including providing information
required to be provided in Section 6.

      3.2. Pre-Distribution Period and Straddle Period Tax Returns. All Tax
Returns required to be filed for Pre-Distribution Periods or Straddle Periods,
shall be:

            (1) prepared and filed by ICN, in the case of any Consolidated or
Combined Income Tax Return; and
            (2) in all other cases, prepared and filed, or caused to be prepared
and filed, by the Company to which such Tax Return relates.
      RIBAPHARM shall, for each Tax Period or portion thereof for which
RIBAPHARM or a member of the RIBAPHARM Group is included in a Tax Return
described in clause (1) of the preceding sentence, provide ICN with (i) a true
and correct pro forma tax return for the

                                      -12-
<PAGE>
RIBAPHARM Group together with an accompanying computation of Tax liability of
the Group prepared in accordance with the Stand Alone Method, (ii) separate pro
forma tax returns for each member of the RIBAPHARM Group together with
accompanying computations of the separate tax return Tax liabilities of each
member of the Group, and (iii) a reconciliation of book income to federal
taxable income for each member of the RIBAPHARM Group. RIBAPHARM hereby agrees
to use its best efforts to provide ICN with such returns and computations no
later than the first day of the sixth month following the end of the period to
which such returns and computations relate, but in any event shall provide such
returns and computations to ICN no later than the fifteenth day of the sixth
month following the end of the period to which such returns and computations
relate. RIBAPHARM, in preparing the above mentioned pro forma tax returns for
its Group, shall not consider or give effect to any (i) net operating loss
carryover or carryback, (ii) capital loss carryover or carryback, (iii) excess
charitable deduction carryover, (iv) excess tax carryover or carryback, or (v)
other similar carryback or carryback item.

      3.3. Post-Distribution Period Tax Returns. Except as otherwise provided in
Section 3.2 with respect to Straddle Period Tax Returns:

            (1) All Tax Returns related exclusively to RIBAPHARM or to a member
of the RIBAPHARM Group for Post-Distribution Periods shall be prepared and filed
(or caused to be prepared and filed) by RIBAPHARM,

            (2) All Tax Returns related exclusively to ICN or to a member of the
ICN Group, excluding for this purpose RIBAPHARM or members of the RIBAPHARM
Group, for Post-Distribution Periods shall be prepared and filed (or caused to
be prepared and filed) by ICN.

      3.4. Tax Accounting Practices.

            (a) General Rule. Except as otherwise provided in this Section 3.4,
any Tax Return for any Pre-Distribution Period or any Straddle Period, and any
Tax Return for any Post-Distribution Period to the extent items reported on such
Tax Return might reasonably affect items reported on any Tax Return for any
Pre-Distribution Period or any Straddle Period, shall be

                                      -13-
<PAGE>
prepared in accordance with past Tax accounting practices used with respect to
the Tax Returns in question (unless such past practices are no longer
permissible under the Code or other applicable Tax Law), and to the extent any
items are not covered by past practices (or in the event such past practices are
not longer permissible under the Code or other applicable Tax Law), in
accordance with reasonable Tax accounting practice selected by the Responsible
Company.

            (b) Reporting of Transaction Tax Items. The tax treatment reported
on any Tax Return of Tax Items relating to the Transaction shall be consistent
with the treatment of such item in the IRS Private Letter Ruling or the Tax
Opinion. To the extent there is a Tax Item relating to the Transactions which is
not covered by the IRS Private Letter Ruling or the Tax Opinion, the tax
treatment of such Tax Items on a Tax Return shall be determined by the
Responsible Company with respect to such Tax Return, provided (i) there is
substantial authority for such tax treatment, and (ii) such tax treatment is not
inconsistent with the tax treatment contemplated in the IRS Private Letter
Ruling or the Tax Opinion. Such Tax Return shall be submitted for review
pursuant to Section 3.5(a), and any dispute regarding such proper tax treatment
shall be referred for resolution pursuant to Section 13 sufficiently in advance
of the filing date of such Tax Return (including extensions) to permit timely
filing of the return.

      3.5. Right to Review Tax Returns.

            (a) General. The Responsible Company with respect to any Tax Return
shall make such Tax Return and related Tax Records available for review by the
other Company, if requested, to the extent (i) such Tax Return relates to Taxes
for which the requesting party may be liable, (ii) such Tax Return relates to
Taxes for which the requesting party may be liable in whole or in part for any
additional Taxes owing as a result of adjustments to the amount of Taxes
reported on such Tax Return, (iii) such Tax Return relates to Taxes for which
the requesting party may have a claim for Tax Benefits under this Agreement, or
(iv) the requesting party reasonably determines that it must inspect such Tax
Return to confirm compliance with the terms

                                      -14-
<PAGE>
of this Agreement. The Responsible Company shall use its reasonable best efforts
to make such Tax Return and Tax Records available for review as required under
this paragraph sufficiently in advance of the due date for filing such Tax
Returns to provide the requesting party with a meaningful opportunity to analyze
and comment on such Tax Returns and have such Tax Returns modified before
filing, taking into account the person responsible for payment of the Tax (if
any) reported on such Tax Return and the materiality of the amount of Tax
liability with respect to such Tax Return. The Companies shall attempt in good
faith to resolve any issues arising out of the review of such Tax Returns or Tax
Records.

            (b) Execution of Returns Prepared by Other Party. In the case of any
Tax Return which is required to be prepared and filed by one Company under this
Agreement and which is required by law to be signed by another Company (or by
its authorized representative), the Company that is legally required to sign
such Tax Return shall not be required to sign such Tax Return under this
Agreement if there is not substantial authority for the tax treatment of any
material items reported on the Tax Return. Any such Tax Return shall be supplied
by the Company responsible for its preparation and filing to the Company
responsible for its signing at least five days prior to the due date of such Tax
Return (including applicable extensions) and such signing Company shall deliver
an executed copy of such Tax Return to the filing Company at least two days
prior to the due date of such Tax Return (including applicable extensions).

SECTION 4. REFUNDS, CARRYBACKS AND TAX BENEFITS.

      4.1. Compensation for Use of RIBAPHARM Consolidated Period Tax Items. In
the event that (i) the ICN Group realizes an actual Tax Benefit during any
Consolidated Period as a result of the use by members of the ICN Group (other
than members of the RIBAPHARM Group) of Tax Items of the RIBAPHARM Group and
(ii) as a result of such use the Federal Income Tax liability of the RIBAPHARM
Group for any period which is not a Consolidated Period is greater than the
amount of such liability computed under the Stand Alone Method (but

                                      -15-
<PAGE>
without regard to clauses (iii) and (iv) of Section 2.6(a)), then ICN will pay
to RIBAPHARM, in accordance with Section 5.7, an amount equal to the lesser of
(x) the excess of the Tax Benefit actually realized by ICN referred to in clause
(i) over the amount of any prior payments to RIBAPHARM pursuant to this Section
4.1 in respect of that Tax Benefit and (y) the excess referred to in clause (ii)
for such non-Consolidated Period.

      4.2. Claims for Refund, Carrybacks, and Self-Audit Adjustments
("Adjustment Requests").

            (a) Consent Required for Adjustment Requests Related to Consolidated
or Combined Income Tax Returns. Except as provided in paragraph (b) below, each
of the Companies hereby agrees that, unless the other Company consents in
writing, which consent shall not be unreasonably delayed or withheld, no
Adjustment Request shall be filed with respect to any Consolidated or Combined
Tax Return that included the RIBAPHARM Group for a Pre-Distribution Period and
affects the RIBAPHARM Group Tax liability. Any Adjustment Request which the
Companies consent to make under this Section 4.2 shall be prepared and filed by
the Responsible Company under Sections 3.2 and 3.3 for the Tax Return to be
adjusted. The Company requesting the Adjustment Request, if other than the
Responsible Company, shall provide to the Responsible Company all information
required for the preparation and filing of such Adjustment Request in such form
and detail as reasonably requested by the Responsible Company.
            (b) Exception for Adjustment Requests Related to Audit Adjustments.
Each Company shall be entitled, without the consent of the other Company, to
require ICN to file an Adjustment Request to take into account any net operating
loss, net capital loss, deduction, credit, or other adjustment attributable to
such Company or any member of its Group corresponding to any adjustment
resulting from any audit by the Internal Revenue Service or other Tax Authority
with respect to Consolidated or Combined Income Tax Returns for any
Pre-Distribution Period.

                                      -16-
<PAGE>
            (c) Other Adjustment Requests Permitted. Nothing in this Section 4.2
shall prevent any Company or its Affiliates from filing any Adjustment Request
with respect to Tax Returns which are not Consolidated or Combined Income Tax
Returns or with respect to any Other Taxes; provided, however, that neither
Company shall file an amended Tax Return with respect to Separate Company or
Other Taxes for which the other Company is liable under this Agreement without
the written consent of such other Company (which consent shall not be
unreasonably withheld). If any refund or credit is obtained as a result of any
such Adjustment Request (or otherwise), the parties shall recalculate the
amounts that would have been paid under this Agreement based on the changes
resulting in such refund or credit, and shall make such payments between them as
necessary to place each in the position it would have been in had the payments
made under this Agreement originally been made based on such changes.

            (d) Payment of Refunds and other Tax Benefits. Except as set forth
in Section 4.2(e), any refunds or other Tax Benefits received by either Company
(or any of its Affiliates) as a result of any Adjustment Request which are for
the account of the other Company (or member of such other Company's Group) shall
be paid by the Company receiving (or whose Affiliate received) such refund or
Tax Benefit to such other Company in accordance with Section 5.

            (e) Ordering of and Payment for Carrybacks.

                  (i) In the event that a member of the ICN Group other than a
member of the RIBAPHARM Group, on the one hand, and a member of the RIBAPHARM
Group, on the other hand, are each entitled to carryback a Tax Item to a
Pre-Distribution Period, the respective Tax Items shall be used under the rules
of applicable Tax Law (which shall be, in the case of Carrybacks to such Tax
Periods of the affiliated group of which ICN is the common parent, the rules
contained in Treasury Regulation Section 1.1502-21).

                  (ii) Any Tax refund or other Tax Benefit resulting from the
Carryback of any member of one Group (the "Carryback Group") of any Tax Item
arising after the Distribution Date to a Pre-Distribution Period shall be for
the account of the Carryback Group

                                      -17-
<PAGE>
(and in the event RIBAPHARM Group is the Carryback Group, then upon receipt of
the Tax refund or other Tax Benefit, ICN shall pay to RIBAPHARM the amount of
such Tax refund or other Tax Benefit); provided, however, that if at the time of
the use of the Carryback Items of a member of the Carryback Group, a member of
the other Group (the "Other Group") possesses Carryback Tax Items which, but for
the ordering rule set forth in (i) above, would have been available to be used
(the "Other Group Carryback") in lieu of the Carryback Group's Tax Items, then
(but only to the extent of the Other Group Carryback) the Carryback Group shall
not be entitled to payment of the amount of such Tax refund or Tax Benefit until
the earlier of (X) the date on which a member of the Other Group claims the
Other Group Carryback on a Tax Return or (Y) the date on which a member of the
Carryback Group would have been able to use the Carryback had it not been
claimed with respect to the Pre-Distribution Period Tax Return.

                  (iii) In the event the Carryback of Tax Items of a member of
the ICN Group other than a member of the RIBAPHARM Group, or a member of the
RIBAPHARM Group, as the case may be, does not result in a Tax refund, due to an
offsetting Tax adjustment to a member of the Other Group, then the Other Group
shall promptly pay the amount of any decrease in Tax liability resulting from
the Carryback claim, provided, however, that in the event the Other Group
possesses Carryback Items which, but for the ordering rules set forth in (i)
above would have been available to be used in lieu of the Carryback Group's
Items, then (but only to the extent of the Other Group Carryback), the Other
Group shall not be required to pay the amount of such decrease in Tax liability
to the Carryback Group until the earlier of (X) the date on which a member of
the Other Group claims the Other Group Carryback on a Tax Return or (Y) the date
on which a member of the Carryback Group would have been able to utilize the
Carryback had it not been claimed with respect to the Pre-Distribution Period
Tax Return.

         4.3. Adjustment of Tax Items. In the event that the Carryback of Tax
Items of one Group, or a Tax adjustment attributable to such Group under the
terms of this Agreement, results in the disallowance or limitation of Tax Items
claimed on the Tax Return as filed, the Carryback

                                     - 18 -
<PAGE>
Group shall be responsible for any increase in Tax liability resulting from the
disallowance or limitation of Tax attributes; provided, however, that in the
event the disallowance or limitation of Tax attributes results in a Tax Benefit
resulting from the use of such Tax attributes in another Tax Period, such Tax
Benefit shall be deemed to be for the account of the Carryback Group for such
purposes of this Agreement.

         4.4. Adjustments on Audit. If, upon examination by any Tax Authority of
any Tax Return including a member of the ICN Group or RIBAPHARM Group for any
Tax Period, any item of deduction, credit or expense is disallowed for which ICN
is or may be liable for Taxes hereunder (or an item of income is required to be
recognized on a Tax Return which was not reported on such Tax Return), in either
such case resulting in a tax detriment suffered by the ICN Group, and such
disallowance (or recognition) results in a Tax Benefit to the RIBAPHARM Group
(with respect to that Tax Period or another Tax Period), then RIBAPHARM shall
pay to ICN the amount of such Tax Benefit that is realized in the form of an
actual reduction in Tax (which shall be computed by comparing the Tax which
would have been owed by RIBAPHARM but for the item giving rise to the Tax
Benefit with the Tax owed by RIBAPHARM taking such item into account) provided,
however, that in no case will the amount that RIBAPHARM is required to pay to
ICN with respect to such Tax Benefit exceed the corresponding tax detriment to
ICN (reduced by payments previously made by RIBAPHARM to ICN with respect to
such Tax Benefit). Any payment required to be made hereunder shall be made in
accordance with Section 5.10. The provisions of this Section 4.4 shall apply
mutatis mutandis where an item of deduction, credit or expense is disallowed for
which RIBAPHARM is or may be liable for Taxes hereunder (or any item of income
is required to be recognized on a Tax Return which was not reported on such Tax
Return), as they apply where the ICN Group suffers such a detriment. For
avoidance of doubt, any payment required to be made by ICN to the RIBAPHARM
Group under this Section 4.4 shall, to the extent applicable, be deemed as an
offset to amounts owing by RIBAPHARM to ICN under Section 2.2 hereof.

                                     - 19 -
<PAGE>
SECTION 5.  TAX PAYMENTS AND INTERCOMPANY BILLINGS.

         5.1.     Payment of Taxes With Respect to ICN Federal Consolidated
                  Returns. In the case of any ICN Federal Consolidated Return -

                  (a) Computation and Payment of Tax Due. Unless otherwise
agreed to by the Companies, at least five business days prior to any Payment
Date, ICN shall compute the amount of Tax required to be paid to the Internal
Revenue Service (taking into account the requirements of Section 3.4 relating to
consistent accounting practices) with respect to such Tax Return on such Payment
Date and shall notify RIBAPHARM in writing of the amount of Tax required to be
paid on such Payment Date. ICN will pay such amount to the Internal Revenue
Service on or before such Payment Date.

                  (b) Computation and Payment of RIBAPHARM Liability With
Respect to Tax Due. Within 30 days following any Payment Date, RIBAPHARM will
pay to ICN the excess (if any) of

                           (i) the amount of liability determined as of such
Payment Date with respect to the applicable Tax Period allocable to RIBAPHARM in
a manner consistent with the provisions of Section 2.2, over

                           (ii) the amount equal to the cumulative net payments
with respect to such Tax Return prior to such Payment Date made by RIBAPHARM or
members of its Group. If the amount in clause (ii) above is greater than the
amount in clause (i) above as of any Payment Date, then ICN shall pay such
excess to RIBAPHARM within 30 days following the Payment Date.

                  (c) Interest on Intergroup Tax Allocation Payments. In the
case of any payments to ICN required under paragraph (b) of this Section 5.1,
RIBAPHARM shall also pay to ICN an amount of interest computed at the Prime Rate
on the amount of the payment required based on the number of days from the
applicable Payment Date until the date of RIBAPHARM's

                                     - 20 -
<PAGE>
subsequent payment. In the case of any payments by ICN required under paragraph
(b) of this Section 5.1, ICN shall also pay to RIBAPHARM an amount of interest
computed at the Prime Rate on the amount of the payment required based on the
number of days from the applicable Payment Date until the date of ICN's
subsequent payment of such amount to RIBAPHARM.

         5.2. Payment of Federal Income Tax Related to Adjustments.

                  (a) Adjustments Resulting in Underpayments. ICN shall pay to
the Internal Revenue Service when due any additional Federal Income Tax required
to be paid as a result of any adjustment to the tax liability with respect to
any ICN Federal Consolidated Return. RIBAPHARM shall pay to ICN an amount that
is allocable to RIBAPHARM under Section 2.2 within 30 days from the later of (i)
the date the additional Tax was paid by ICN or (ii) the date of receipt by
RIBAPHARM of a written notice and demand from ICN for payment of the amount due,
accompanied by evidence of payment and a statement detailing the Taxes paid and
describing in reasonable detail the particulars relating thereto. Any payments
required under this Section 5.2 (a) shall include interest computed at the Prime
Rate based on the number of days from the date the additional Tax was paid by
ICN to the date of the payment under this Section 5.2(a).

                  (b) Adjustments Resulting in Overpayments. Within 30 days of
receipt by ICN of any Tax Benefit resulting from any adjustment to the tax
liability with respect to any ICN Federal Consolidated Return, ICN shall pay to
RIBAPHARM its share of any such Tax Benefit, as determined in accordance with
the principles of Sections 2.2 and 4. Any payments required under this Section
5.2(b) shall include interest computed at the Prime Rate based on the number of
days from the date the Tax Benefit was received by ICN to the date of payment to
RIBAPHARM under this Section 5.2(b).

         5.3. Payment of State Income Tax Relating to Pre-Distribution Periods.

                  (a) Computation and Payment of Tax Due. Unless otherwise
agreed to by the Companies, at least five business days prior to any Payment
Date for any Tax Return with

                                     - 21 -
<PAGE>
respect to any State Income Tax relating to a Pre-Distribution Period, the
Responsible Company shall compute the amount of Tax required to be paid to the
applicable Tax Authority (taking into account the requirements of Section 3.4
relating to consistent accounting practices) with respect to such Tax Return on
such Payment Date and --

                           (i) If such Tax Return is with respect to a
Consolidated or Combined State Income Tax, the Responsible Company shall, if ICN
is not the Responsible Company with respect to such Tax Return, notify ICN in
writing of the amount of Tax required to be paid on such Payment Date. ICN will
pay such amount to such Tax Authority on or before such Payment Date.

                           (ii) If such Tax Return is with respect to a Separate
Company Tax, the Responsible Company shall, if it is not the Company liable for
the Tax reported on such Tax Return, notify the Company liable for such Tax in
writing of the amount of Tax required to be paid on such Payment Date. The
Company liable for such Tax will pay such amount to such Tax Authority on or
before such Payment Date.
                  (b) Computation and Payment of RIBAPHARM Liability With
Respect to Tax Due. Within 30 days following the due date (including extensions)
for filing any Tax Return for any Consolidated or Combined State Income Tax
(excluding any Tax Return with respect to payment of estimated Taxes or Taxes
due with a request for extension of time to file) relating to a Pre-Distribution
Period, RIBAPHARM shall pay to ICN the Tax liability allocable to RIBAPHARM as
determined by ICN under the provisions of Sections 2.3 and 4 (and following the
procedures described in Section 5.2(a)), plus interest computed at the Prime
Rate on the amount of the payment based on the number of days from the due date
(including extensions) to the date of payment by RIBAPHARM to ICN.
         5.4. Payment of State Income Taxes Related to Adjustments.

                  (a) Adjustments Resulting in Underpayments. ICN shall pay to
the applicable Tax Authority when due any additional State Income Tax required
to be paid as a result of any

                                     - 22 -
<PAGE>
adjustment to the Tax liability with respect to any Tax Return for any
Consolidated or Combined State Income Tax for any Pre-Distribution Period.
RIBAPHARM shall pay to ICN its respective share of any such additional Tax
payment determined in accordance with Sections 2.3 and 4 within 30 days from the
later of (i) the date the additional Tax was paid by ICN or (ii) the date of
receipt by RIBAPHARM of a written notice and demand from ICN for payment of the
amount due, accompanied by evidence of payment and a statement detailing the
Taxes paid and describing in reasonable detail the particulars relating thereto.
RIBAPHARM shall also pay to ICN interest on its respective share of such Tax
computed at the Prime Rate based on the number of days from the date the
additional Tax was paid by ICN to the date of its payment to ICN under this
Section 5.4(a).

                  (b) Adjustments Resulting in Overpayments. Within 30 days of
receipt by ICN of any Tax Benefit resulting from any adjustment to the Tax
liability with respect to any Tax Return for any Consolidated or Combined State
Income Tax for any Pre-Distribution Period, ICN shall pay to RIBAPHARM its share
of any such Tax Benefit determined in accordance with the principles of Sections
2.3 and 4. Any payments required under this Section 5.4(b) shall include
interest computed at the Prime Rate based on the number of days from the date
the Tax Benefit was received by ICN to the date of payment under this Section
5.4(b).

         5.5. Payment of Separate Company Taxes and Other Taxes. Each Company
shall pay, or shall cause to be paid, to the applicable Tax Authority when due
all Separate Company Taxes and Other Taxes owed by such Company or a member of
such Company's Group.

         5.6. Indemnification Payments. If any Company (the "payor") is required
to pay to a Tax Authority a Tax that another Company (the "responsible party")
is required to pay to such Taxing Authority under this Agreement, the
responsible party shall reimburse the payor within 30 days of delivery by the
payor to the responsible party of an invoice for the amount due, accompanied by
evidence of payment and a statement detailing the Taxes paid and describing in
reasonable detail the particulars relating thereto. The reimbursement shall
include interest on the

                                     - 23 -
<PAGE>
Tax payment computed at the Prime Rate based on the number of days from the date
of the payment to the Tax Authority to the date of reimbursement under this
Section 5.6.

         5.7. Compensation for use of RIBAPHARM Consolidated Period Tax Items.
In the event ICN is required to pay RIBAPHARM in accordance with Section 4.1,
RIBAPHARM shall deliver to ICN an invoice stating the amount due to RIBAPHARM,
accompanied by a reasonably detailed calculation of that amount, as prescribed
by section 4.1. ICN shall pay RIBAPHARM within 30 days from the due date
(including any extensions) for the Tax Return filed by RIBAPHARM with respect to
such amount, including interest computed at the Prime Rate based on the number
of days from such due date to the date ICN pays RIBAPHARM.

         5.8. Payment of Refunds and Other Tax Benefits.

                  (a) Except as otherwise provided in this Agreement, if a
member of one Group receives a Tax refund or other Tax Benefit with respect to
Taxes for which a member of the other Group is liable hereunder, the Company
receiving such Tax refund or other Tax Benefit shall make a payment to the
Company who is liable for such Taxes hereunder within 30 days following the
receipt of the Tax refund or other Tax Benefit in an amount equal to such Tax
refund or other Tax Benefit, plus interest on such amount computed at the Prime
Rate based on the number of days from the date of receipt of the Tax refund or
other Tax Benefit to the date of payment under this Section 5.8.

                  (b) In the event one Group is reimbursed for its payment of a
Tax liability of the other Group, the amount of such reimbursement shall be
computed net of any Tax Benefit realized by the reimbursed Group as the result
of payment of the other Group's Tax liability.

         5.9. Payment for Carrybacks. Each Company shall pay the other Company
for Carrybacks in accordance with Section 4.2(e). Any such payment shall include
interest at the Prime Rate based on the number of days from the date Company is
required to make the payment under Section 4.2(e) to the date the Company
actually makes the payment.

                                     - 24 -
<PAGE>
         5.10. Payment for Adjustments on Audit. Any payment required under
Section 4.4 shall be made within 30 days of the due date (including any
extensions) of the Tax Return on which the Tax Benefit described in that section
is claimed. Such payment shall include interest computed at the Prime Rate based
on the number of days from such due date to the date the payment is made.

SECTION 6.  ASSISTANCE AND COOPERATION.

         6.1. General. Each of the Companies shall cooperate (and cause their
respective Affiliates to cooperate) with each other and with each other's
agents, including accounting firms and legal counsel, in connection with Tax
matters relating to the Companies and their Affiliates including (i) preparation
and filing of Tax Returns, (ii) determining the liability for and amount of any
Taxes due (including estimated Taxes) or the right to and amount of any refund
of Taxes, (iii) examinations of Tax Returns, and (iv) any administrative or
judicial proceeding in respect of Taxes assessed or proposed to be assessed.
Such cooperation shall include making all information and documents in their
possession relating to the other Companies and their Affiliates available to
such other Companies as provided in Section 7. Each of the Companies shall also
make available to each other, as reasonably requested and available, personnel
(including officers, directors, employees and agents of the Companies or their
respective Affiliates) responsible for preparing, maintaining, and interpreting
information and documents relevant to Taxes, and personnel reasonably required
as witnesses or for purposes of providing information or documents in connection
with any administrative or judicial proceedings relating to Taxes. Any
information or documents provided under this Section 6 shall be kept
confidential by the Company receiving the information or documents, except as
may otherwise be necessary in connection with the filing of Tax Returns or in
connection with any administrative or judicial proceedings relating to Taxes.

                                     - 25 -
<PAGE>
         6.2. Income Tax Return Information. Each Company will provide to each
other Company information and documents relating to their respective Groups
required by the other Companies to prepare Tax Returns. The Responsible Company
shall determine a reasonable compliance schedule for such purpose in accordance
with past practices. Any additional information or documents the Responsible
Company requires to prepare such Tax Returns will be provided in accordance with
past practices, if any, or as the Responsible Company reasonably requests and in
sufficient time for the Responsible Company to file such Tax Returns timely.

SECTION 7.  TAX RECORDS.

         7.1. Retention of Tax Records. Except as provided in Section 7.2, each
Company shall preserve and keep all Tax Records exclusively relating to the
assets and activities of their respective Groups for Pre-Distribution Tax
Periods, and ICN shall preserve and keep all other Tax Records relating to Taxes
of the Groups for Pre-Distribution Tax Periods, for so long as the contents
thereof may become material in the administration of any matter under the Code
or other applicable Tax Law, but in any event until the later of (i) the
expiration of any applicable statutes of limitation, as extended, and (ii) seven
years after the Distribution Date. Prior to disposing of any Tax Records which
it is required to preserve and keep under this Section 7, a Company shall
provide 90-days written notice to the other Company. Such notice shall include a
list of the records to be disposed of describing in reasonable detail each file,
book, or other record accumulation being disposed of. The notified Company shall
have the opportunity, at its cost and expense, to copy or remove, within such
90-day period, all or any part of such Tax Records.

         7.2. State Income Tax Returns. Tax Returns with respect to State Income
Taxes and workpapers prepared in connection with preparing such Tax Returns
shall be preserved and kept, and disposed of, in accordance with the guidelines
of Section 7.1, by the Company responsible for preparing and filing the
applicable Tax Return.

                                     - 26 -
<PAGE>
         7.3. Access to Tax Records. The Companies and their respective
Affiliates shall make available to each other for inspection and copying during
normal business hours upon reasonable notice all Tax Records in their possession
to the extent reasonably requested by the other Company in connection with the
preparation of Tax Returns, audits, litigation, or the resolution of items under
this Agreement.

SECTION 8.  TAX CONTESTS.

         8.1. Notice. Each of the parties shall provide prompt notice to the
other party of any pending or threatened Tax audit, assessment or proceeding or
other Tax Contest of which it becomes aware related to Taxes for Tax Periods for
which it is indemnified by the other party hereunder. Such notice shall contain
factual information (to the extent known) describing any asserted Tax liability
in reasonable detail and shall be accompanied by copies of any notice and other
documents received from any Tax Authority in respect of any such matters. If an
indemnified party has knowledge of an asserted Tax liability with respect to a
matter for which it is to be indemnified hereunder and such party fails to give
the indemnifying party prompt notice of such asserted Tax liability, then (i) if
the indemnifying party is precluded from contesting the asserted Tax liability
in any forum as a result of the failure to give prompt notice, the indemnifying
party shall have no obligation to indemnify the indemnified party for any Taxes
arising out of such asserted Tax liability, and (ii) if the indemnifying party
is not precluded from contesting the asserted Tax liability in any forum, but
such failure to give prompt notice results in a monetary detriment to the
indemnifying party, then any amount which the indemnifying party is otherwise
required to pay the indemnified party pursuant to this Agreement shall be
reduced by the amount of such detriment.

         8.2. Control of Tax Contests. Each Company shall have full
responsibility and discretion in handling, settling or contesting any Tax
Contest involving a Tax for which it is liable pursuant to Section 2 of this
Agreement; provided, however, ICN shall have full

                                     - 27 -
<PAGE>
responsibility and discretion in handling, settling or contesting any Tax
Contest with respect to a Consolidated or Combined Income Tax Return of the ICN
Group. Furthermore, both Companies may participate in any Tax Contest with
respect to Restructuring Taxes regardless of whether it has liability or
indemnification obligations with respect to such Taxes under this Agreement.

SECTION 9.  NO INCONSISTENT ACTIONS.

                  (a) Each of the Companies covenants and agrees that it will
not take any action, and it will cause its Affiliates to refrain from taking any
action, which may be inconsistent with the Tax treatment of the Transactions as
contemplated in the IRS Private Letter Ruling or the Tax Opinion (any such
action is referred to in this Section 9 as a "Tainting Act"), unless (i) the
Company or Affiliate thereof proposing such Tainting Act (the "Requesting
Party") either (A) obtains a ruling with respect to the Tainting Act from the
Internal Revenue Service or other applicable Tax Authority that is reasonably
satisfactory to the other Company (the "Requested Party") (except that the
Requesting Party shall not submit any such ruling request if a Requested Party
determines in good faith that filing such request might have a materially
adverse effect upon such Requested Party), or (B) obtains an opinion reasonably
acceptable to each Requested Party of independent, nationally-recognized tax
counsel acceptable to each Requested Party, on a basis of assumed facts and
representations consistent with the facts at the time of such action, that such
Tainting Act will not affect the Tax treatment of the Transactions as
contemplated in the IRS Private Letter Ruling or the Tax Opinion, or (ii) each
Requested Party consents in writing to such Tainting Act, which consent shall be
granted or withheld in the sole and absolute discretion of each such Requested
Party. Without limiting the foregoing:

                           (i) Specified Actions. During the two year period
following the Distribution Date, unless clause (i) or (ii) of the preceding
paragraph is satisfied with respect to the applicable action, no Company or its
Affiliate will (A) liquidate or merge with or into any other corporation (other
than a merger which results in the outstanding stock of such Company or

                                     - 28 -
<PAGE>
its Affiliates immediately before the merger continuing to represent at least
eighty (80) percent of the outstanding voting stock and non-voting stock of the
merged corporations after the transaction); (B) issue more than ten (10)
percent, in the aggregate, by vote or value, of its capital stock in one or more
transactions; (C) redeem, purchase or otherwise reacquire its capital stock in
one or more transactions, except to the extent such redemption, purchase or
reacquisition meets the requirements of section 4.05(1)(b) of Revenue Procedure
96-30; (D) sell, exchange, distribute or otherwise dispose of, other than in the
ordinary course of business, more than twenty-five (25) percent of the assets
constituting the trades or businesses relied upon in the IRS Private Letter
Ruling or the Tax Opinion to satisfy Section 355(b) of the Code; or (E)
discontinue or cause to be discontinued the active conduct of the trades or
businesses relied upon in the IRS Private Letter Ruling or the Tax Opinion to
satisfy Section 355(b) of the Code.
                              (ii) No Inconsistent Plan or Intent. Each of the
Companies represents and warrants that neither it nor any of its Affiliates has
any plan or intent to take any action which is inconsistent with any factual
statements or representations in the IRS Private Letter Ruling or the Tax
Opinion. Regardless of any change in circumstances, each of the Companies
covenants and agrees that it will not take, and it will cause its Affiliates to
refrain from taking, any such inconsistent action on or before the second
anniversary of the Distribution Date other than as permitted in this Section 9.
                           (iii) 355(e) Covenant. Notwithstanding anything in
this Agreement to the contrary, each of ICN and RIBAPHARM covenants and agrees
that, during the two-year periods ending on and beginning on the Distribution
Date, unless clause (i) or (ii) of section 9(a) of this Agreement is satisfied
with respect to the applicable action, it will not enter into any negotiations,
agreements or arrangements with respect to transactions or events (including
stock issuances, option grants, capital contributions or acquisitions, which may
cause the Distribution to be treated as part of a plan pursuant to which one or
more persons acquire directly or indirectly
                                     - 29 -
<PAGE>
ICN or RIBAPHARM stock, as the case may be, representing a "50 percent or
greater interest" within the meaning of Section 355(e)(4) of the Code.

                           (iv) Amended or Supplemental Rulings. Each of the
Companies covenants and agrees that it will not file, and it will cause its
Affiliates to refrain from filing, any amendment or supplement to the
Application for Ruling with respect to the Transactions subsequent to the
Distribution Date without the consent of the other Companies, which consent
shall not be unreasonably withheld.

                          (v) Liability for Breach of Representations or
Omission or Misstatement of Material Facts. RIBAPHARM represents that (i) it has
read or will read the Application for Ruling, any amendment or supplement to the
Application for Ruling (each a "Supplemental Application"), and any Tax Opinion
Submission made available to it by ICN, (ii) all information relating to
RIBAPHARM or any member of the RIBAPHARM Group contained in such Application for
Ruling, Supplemental Application and Tax Opinion Submission is or will be true,
correct and complete in all material respects at the time such information is
submitted, and (iii) except to the extent that RIBAPHARM shall have notified ICN
in writing to the contrary, with reasonable specificity and as promptly as
possible, prior to the Distribution, all such information supplied to ICN in
writing by RIBAPHARM or any member of the RIBAPHARM Group will be true, correct
and complete in all material respects as of the Distribution Date. If the IRS
withdraws all, or any portion, of an IRS Private Letter Ruling issued to ICN in
connection with the Distribution, or if any Tax Opinion is rendered inapplicable
or ineffective because of a breach by RIBAPHARM or any member of the RIBAPHARM
Group of a representation or because of the omission or misstatement by
RIBAPHARM or any member of the RIBAPHARM Group of any material fact, which
breach, omission or misstatement was not known to ICN on or before the
Distribution Date, RIBAPHARM and every member of the RIBAPHARM Group shall be
responsible for one hundred (100) percent of any Restructuring Tax resulting
from such breach, omission or misstatement, and shall jointly and severally
                                     - 30 -

<PAGE>
indemnify, on an after-tax-basis, ICN, each member of the ICN Group other than a
member of the RIBAPHARM Group, and their directors, officers and employees and
hold them harmless from and against such Restructuring Tax.

                  (b) Notwithstanding anything to the contrary in this
Agreement, each Company shall be solely liable for, and shall indemnify and hold
harmless the other Company from any Restructuring Tax resulting from a Tainting
Act by such first Company or its Affiliates, regardless of whether clause (i) or
(ii) of Section 9(a) was satisfied with respect to such Tainting Act.

SECTION 10.  SURVIVAL OF OBLIGATIONS.

         The representations, warranties, covenants and agreements set forth in
this Agreement shall be unconditional and absolute and shall remain in effect
without limitation as to time.

SECTION 11.  EMPLOYEE MATTERS.

         Each of the Companies agrees to utilize, or cause its Affiliates to
utilize, the alternative procedure set forth in section 5 of Revenue Procedure
96-60, 1996-2 C.B. 399, with respect to wage reporting.

SECTION 12.  TREATMENT OF PAYMENTS; TAX GROSS UP.

         12.1. Treatment of Tax Indemnity and Tax Benefit Payments. In the
absence of any change in tax treatment under the Code or other applicable Tax
Law, any Tax indemnity payments or Tax Benefit payments made by a Company under
Section 5 shall be reported for Tax purposes by the payor and the recipient as
distributions or capital contributions, as appropriate, occurring immediately
before the Distribution on the Distribution Date, but only to the extent the
payment does not relate to a Tax allocated to the payor in accordance with

                                     - 31 -

<PAGE>
Treasury Regulation Section 1.1502-33(d) (or under corresponding principles of
other applicable Tax Laws).

         12.2. Tax Gross Up. If notwithstanding the manner in which Tax
indemnity payments and Tax Benefit payments were reported, there is an
adjustment to the Tax liability of a Company as a result of its receipt of a
payment pursuant to this Agreement, such payment shall be appropriately adjusted
so that the amount of such payment, reduced by the amount of all Income Taxes
payable with respect to the receipt thereof (but taking into account all
correlative Tax Benefits resulting from the payment of such Income Taxes), shall
equal the amount of the payment which the Company receiving such payment would
otherwise be entitled to receive pursuant to this Agreement.

         12.3. Interest Under This Agreement. Anything herein to the contrary
notwithstanding, to the extent one Company ("indemnitor") makes a payment of
interest to another Company ("indemnitee") under this Agreement with respect to
the period from the date that the indemnitee made a payment of Tax to a Tax
Authority to the date that the indemnitor reimbursed the indemnitee for such Tax
payment, or with respect to the period from the date that the indemnitor
received a Tax Benefit to the date indemnitor paid the indemnitee with respect
to such Tax Benefit, the interest payment shall be treated as interest expense
to the indemnitor (deductible to the extent provided by law) and as interest
income by the indemnitee (includible in income to the extent provided by law).
The amount of the payment shall not be adjusted under Section 12.2 to take into
account any associated Tax Benefit to the indemnitor or increase in Tax to the
indemnitee.

SECTION 13.  DISAGREEMENTS.

         If after good faith negotiations the parties cannot agree on the
application of this Agreement to any matter concerning (i) calculation or
allocation of any liability for Tax, (ii) computation or payment of any Tax due,
(iii) compensation for any Tax Benefit, (iv) preparation

                                     - 32 -

<PAGE>
or filing of any Tax Return or (v) control of any Tax Contest, then the matter
will be referred to an independent law firm or an accounting firm acceptable to
each of the parties (the "Firm"). The Firm shall furnish written notice to the
parties of its resolution of any such disagreement as soon as practical, but in
any event no later than 45 days after its acceptance of the matter for
resolution. Any such resolution by the Firm will be conclusive and binding on
all parties to this Agreement. In accordance with Section 15, each party shall
pay its own fees and expenses (including the fees and expenses of its
representatives) incurred in connection with the referral of the matter to the
Firm. All fees and expenses of the Firm in connection with such referral shall
be shared equally by the parties affected by the matter.

SECTION 14.  LATE PAYMENTS.

         Any amount owed by one party to another party under this Agreement
which is not paid when due shall bear interest at the Prime Rate plus two
percent, compounded on each March 31, June 30, September 30 and December 31,
from the due date of the payment to the date paid. To the extent interest
required to be paid under this Section 14 duplicates interest required to be
paid under any other provision of this Agreement, interest shall be computed at
the higher of the interest rate provided under this Section 14 or the interest
rate provided under such other provision.

SECTION 15.  EXPENSES.

         Except as provided in Section 14, each Company and its Affiliates shall
bear their own expenses incurred in connection with preparation of Tax Returns,
Tax Contests, and other matters related to Taxes under the provisions of this
Agreement.

SECTION 16.  GENERAL PROVISIONS.

         16.1. Notices. All notices and other communications hereunder shall be
in writing and shall be delivered in person, by telecopy, by express or
overnight mail delivered by a

                                     - 33 -

<PAGE>
nationally recognized air courier (delivery charges prepaid), or by registered
or certified mail (postage prepaid, return receipt requested) to the respective
parties as follows:

                  (a)      If to ICN, to:

                           ICN Pharmaceuticals, Inc.
                           3300 Hyland Avenue
                           Costa Mesa, CA  92626
                           Attention:  Gregory Keever, Esq.

                  (b)      If to RIBAPHARM, to:

                           RIBAPHARM Inc.
                           3300 Hyland Avenue
                           Costa Mesa, CA  92626
                           Attention:  Roger Loomis, Esq.

or to such other address as the party to whom notice is given may have
previously furnished to the others in writing in the manner set forth above. Any
notice or communication delivered in person shall be deemed effective on
delivery or when delivery is refused. Any notice or communication sent by
telecopy or by air courier shall be deemed effective on the first Business Day
at the place at which such notice or communication is received following the day
on which such notice or communication was sent.

         16.2. Counterparts. This Agreement may be executed in two or more
counterparts, each of which shall be deemed to be an original, but all of which
together shall constitute one and the same agreement. The Agreement may be
delivered by facsimile transmission of a signed copy thereof.

         16.3. Binding Effect; Assignment. This Agreement and all of the
provisions hereof shall be binding upon the parties hereto and inure to the
benefit of the parties hereto and their

                                     - 34 -

<PAGE>
respective successors and permitted assigns. Except with respect to a merger of
either party, neither this Agreement nor any of the rights, interests or
obligations hereunder shall be assigned by either party hereto without the prior
written consent of the other party, which consent shall not be unreasonably
withheld or delayed; provided, however, that ICN and RIBAPHARM may assign their
respective rights, interests, duties, liabilities and obligations under this
Agreement to any of their respective subsidiaries, but such assignment shall not
relieve ICN or RIBAPHARM, as the assignee, of its obligations hereunder. The
schedules attached hereto or referred to herein are an integral part of this
Agreement and are hereby incorporated into this Agreement and made a part hereof
as if set forth in full herein.

         16.4. Dispute Resolution. Except as otherwise provided for in Section
13, resolution of any and all disputes arising from or in connection with this
Agreement, whether based on contract, tort, or otherwise (collectively,
"Disputes"), shall be governed by and settled in accordance with the provisions
of this Section 16.4. The parties hereto shall use all commercially reasonable
efforts to settle all Disputes without resorting to mediation, arbitration,
litigation or other third party dispute resolution mechanisms. If any Dispute
remains unsettled, the parties hereby agree to mediate such Dispute using a
mediator reasonably acceptable to all parties involved in such Dispute. If the
parties are unable to resolve such dispute through mediation, each party will be
free to commence proceedings for the resolution thereof. No party shall be
entitled to consequential, special, exemplary or punitive damages.

         16.5. Severability. Any provision of this Agreement which is prohibited
or unenforceable in any jurisdiction shall, as to such jurisdiction, be
ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof. Any such

                                     - 35 -
<PAGE>
prohibition or unenforceability in any jurisdiction shall not invalidate or
render unenforceable such provision in any other jurisdiction.

         16.6. Waiver. The observance of any term of this Agreement may be
waived (either generally or in a particular instance and either retroactively or
prospectively) by the party entitled to enforce such term, but such waiver shall
be effective only if it is in writing signed by the party against which such
waiver is to be asserted. Unless otherwise expressly provided in this Agreement,
no delay or omission on the part of any party in exercising any right or
privilege under this Agreement shall operate as a waiver thereof, nor shall any
waiver on the part of any party of any right or privilege under this Agreement
operate as a waiver of any other right or privilege under this Agreement nor
shall any single or partial exercise of any right or privilege preclude any
other or further exercise thereof or the exercise of any other right or
privilege under this Agreement. No failure by either party to take any action or
assert any right or privilege hereunder shall be deemed to be a waiver of such
right or privilege in the event of the continuation or repetition of the
circumstances giving rise to such right unless expressly waived in writing by
the party against whom the existence of such waiver is asserted.

         16.7. Amendment. This Agreement may not be amended or modified in any
respect except by a written agreement signed by both of the parties hereto.

         16.8. Authority. Each of the parties hereto represents to the other
that (a) it has the corporate power and authority to execute, deliver and
perform this Agreement, (b) the execution, delivery and performance of this
Agreement by it has been duly authorized by all necessary corporate action, (c)
it has duly and validly executed and delivered this Agreement, and (d) this
Agreement is a legal, valid and binding obligation, enforceable against it in
accordance with its

                                     - 36 -
<PAGE>
terms subject to applicable bankruptcy, insolvency, reorganization, moratorium
or other similar laws affecting creditors' rights generally and general equity
principles.

         16.9. Interpretation. The headings contained in this Agreement, in any
Schedule hereto and in the table or contents to this Agreement are for reference
purposes only and shall not affect in any way the meaning or interpretation of
this Agreement. Any capitalized term used in any Schedule but not otherwise
defined therein, shall have the meaning assigned to such term in this Agreement.
When a reference is made in this Agreement to an Article or a Section or
Schedule, such reference shall be to an Article or Section of, or a Schedule to,
this Agreement unless otherwise indicated.

         16.10 Effective Time. This Agreement shall become effective upon the
time of purchase of the Firm Shares, as defined in the Underwriting Agreement,
by and among ICN, Ribapharm and the underwriters named therein, dated         ,
2002, relating to the Initial Public Offering.

         IN WITNESS WHEREOF, the parties have caused this Agreement to be
executed by the respective officers as of the date set forth above.

                                        ICN PHARMACEUTICALS, INC.

                                        By:
                                           ------------------------------------
                                        Name:
                                             ----------------------------------
                                        Title:
                                              ---------------------------------

                                        RIBAPHARM INC.

                                        By:
                                           ------------------------------------
                                        Name:
                                             ----------------------------------
                                        Title:
                                              ---------------------------------

                                     - 37 -

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00035-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00035-of-00352.parquet"}]]