Document:

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CONFIDENTIAL TREATMENT REQUESTED                                   EXHIBIT 10.7

CONFIDENTIAL TREATMENT REQUESTED: INFORMATION FOR WHICH CONFIDENTIAL TREATMENT
HAS BEEN REQUESTED IS OMITTED AND IS NOTED WITH "[CONFIDENTIAL TREATMENT
REQUESTED]." AN UNREDACTED VERSION OF THIS DOCUMENT HAS BEEN FILED SEPARATELY
WITH THE SECURITIES AND EXCHANGE COMMISSION.

                             CO-PROMOTION AGREEMENT
                             ----------------------

     This Co-Promotion Agreement ("Agreement") is made and entered into as of
June 29th, 2001, by and between Elan Pharmaceuticals, Inc. (hereinafter referred
to as "Elan") and Xcel Pharmaceuticals, Inc. (hereinafter referred to as
"Xcel").

     WHEREAS, Elan has marketing and proprietary rights to the Product (as
defined below); and

     WHEREAS, Xcel has a sales and marketing organization that can promote the
Product to specialty physicians in the neurology market; and

     WHEREAS, the parties desire that Xcel participate in the marketing of the
Product by Co-promoting the Product to such physicians in the United States.

     NOW, THEREFORE, in consideration of the mutual covenants contained herein,
the parties hereto agree as follows:

     1. DEFINITIONS
        -----------

     The following terms shall have the following meanings for all purposes of
this Agreement:

          1.1 "Affiliate" of any party shall mean any Person, directly or
               ---------
indirectly controlling, controlled by, or under common control with such other
Person. However, "Affiliate" does not include subsidiaries in which a Person
owns a majority of the ordinary voting power to elect a majority of the Board of
Directors, but is restricted from electing such majority by contract or
otherwise, until such time as such restrictions are no longer in effect.

          1.2 "Detail" shall mean a contact between one or more potential
               ------
customers of a Product or Product and one Xcel sales representative during which
information about the Product is disseminated. When used as a verb, "Detail"
shall mean to engage in a Detail.

          1.3 "Detailing Period" shall mean the twelve (12) month period
               ----------------
commencing as of July 1, 2001 and ending on June 30, 2002.

          1.4 "FDA" shall mean the United States Food and Drug Administration.
               ---

          1.5 "Market" shall mean, when used as a verb, to market, sell,
               ------
distribute, Promote, Co-promote or advertise a product.

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                                                          CONFIDENTIAL TREATMENT

               1.6 "Marketing Materials" shall mean the promotional and/or
                    -------------------
marketing materials relating to the Product, which are permitted for use by Xcel
under this Agreement, and which shall be provided to Xcel by Elan at no cost to
Xcel.

               1.7 "Net Sales" shall mean the gross amount invoiced for a
                    ---------
Product for an applicable period by Elan or its Affiliates to third parties
less:

     (i) quantity, trade and/or cash discounts allowed or given;

     (ii) credits or refunds allowed for the return of rejected, outdated,
damaged or returned product;

     (ii) rebates, chargebacks and price adjustments allowed or given; and

     (iv) sales and other excise taxes and duties directly related to the sale,
transportation or delivery, to the extent that such items are included in the
gross invoice price (but not including taxes assessed against the income derived
from such sale).

     Each of the items set forth in clauses (i)-(iv) above shall be deducted
from the gross amount invoiced only to the extent charged against Elan or its
Affiliates and evidenced in Elan's or its Affiliates' books and records of
account. Deductions shall be determined in accordance with U.S. Generally
Accepted Accounting Principles consistently applied. If product is sold for
compensation other than cash, Net Sales shall be calculated based on the gross
list price of the product on the date of sale.

     Sales of product by and between Elan and its Affiliates are not sales to a
third party and shall be excluded from Net Sales calculations for all purposes.

          1.8 "Person" shall mean an individual, a corporation, a partnership,
               ------
an association, a trust or other entity or organization, including a government
or political subdivision or an agency or instrumentality thereof.

          1.9 "Product" shall mean and include all of the following: (i)
               -------
[CONFIDENTIAL TREATMENT REQUESTED] and (ii) any and all improvements thereto,
including without limitation all improved formulations thereof (i.e., extended
release and/or modified release formulations), commercialized and marketed by
Elan or its Affiliates at any time during the Royalty Term.

          1.10 "Promotion" and "Co-promotion:" Promotion shall mean those
                -----------------------------
activities including but not limited to Detailing, Sampling and any other sales
and marketing activities (including in person contact) normally undertaken by a
pharmaceutical company's sales force to implement marketing plans and strategies
aimed at encouraging the appropriate use of a particular prescription
pharmaceutical product. When used as a verb, "Promote" shall mean to engage in
such activities. Co-promotion shall mean such activities as are listed above,
including Detailing and Sampling. When used as a verb, "Co-promote" shall mean
to engage in such activities.

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                                                          CONFIDENTIAL TREATMENT

          1.11 "Royalty Term" shall mean the period beginning on July 1, 2001
                ------------
and ending on and including December 31, 2010.

          1.12 "Sample" shall mean a unit of the Product, that is not intended
                ------
to be sold and is intended to promote the sale of the Product, which, to the
extent that Xcel samples the Product, shall be provided by Elan to Xcel at no
cost. When used as a verb, "Sample" shall mean to provide Samples to physicians
and/or the offices of physicians.

          1.13 "Term" of this Agreement shall mean the time period defined in
                ----
Section 8.1.

          1.14 "Territory" shall mean the fifty (50) states of the United States
                ---------
and the District of Columbia.

     2. GRANT AND OBLIGATIONS
        ---------------------

          2.1 Grant. Elan hereby grants to Xcel for the Detailing Period, the
              -----
right, and Xcel hereby accepts and agrees, to Co-promote the Product in the
Territory, jointly with Elan's Promotion of the Product, in accordance with the
terms of this Agreement.

          2.2 Obligations of Xcel.
              -------------------

               (a) Xcel shall use commercially reasonable efforts to Co-promote
the Product in a tertiary position in the Territory during the Detailing Period.
In connection therewith, Xcel agrees to establish and maintain a well-trained
sales force in order to Co-promote the Product using the Marketing Materials.

               (b) Xcel agrees to limit the claims of efficacy and safety
for the Product made by the Xcel sales force to those which are consistent with
Elan's approved labeling for the Product in the Territory and the Marketing
Materials. Xcel shall not add, delete or modify claims of efficacy or safety in
its Co-promotion of the Product nor make any changes in the Marketing Materials.
Xcel's use of the Marketing Materials, and Xcel's Co-promotion of the Product,
shall be in strict adherence to regulatory, professional and legal requirements
including, but not limited to, FDA's regulations and guidelines concerning the
advertising of prescription drug Product, the American Medical Association's
guidelines on Gifts to Physicians, the PhRMA Guidelines for Marketing Practices,
the ACCME Standards for Commercial Support of Continuing Medical Education, and
any updates thereto. Upon written notice to Xcel of any breach of this
provision, Xcel shall cease all offending or potentially offending activity.

               (c) The determination of the content, the quantity and the method
of distribution of the Marketing Materials shall be the sole responsibility of,
and at the sole discretion of, Elan. In connection with the Co-promotion of the
Product, Xcel shall use only the Marketing Materials, which shall be used only
for the purposes of this Agreement and shall be returned to Elan promptly upon
termination of this Agreement, except for one complete set of such Marketing
Materials which shall be retained in Xcel's legal files for verification
purposes only. Any written communications and scripts for verbal communications
to be used in the Co-promotion by Xcel shall be approved in advance, in writing
by Elan. All copyright and other intellectual property rights in the Marketing
Materials shall remain at all times vested in Elan.

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                                                          CONFIDENTIAL TREATMENT

Xcel shall not create, distribute or use sales, promotion or other similar
material relating to the Product without the prior written consent of Elan.

          (d) Except as otherwise provided, all written communications from Xcel
to its sales representatives concerning the Co-promotion of the Product, other
than communications described below, shall be subject to prior written approval
by Elan. Those communications which are not subject to prior written approval
are those communications which contain no drug information other than product
name, description and price. This may include tactical memos, competitive alerts
and other routine business reports which contain no substantive drug information
about the Product.

          (e) In connection with the Co-promotion of the Product in the
Territory, Xcel shall comply with all laws of the Territory and all other
applicable laws and regulations (including but not limited to regulations
regarding promotion and safety reporting), plus any and all regulatory
guidelines provided by Elan, and shall do nothing which Xcel knows or should
reasonably know would jeopardize the goodwill or reputation of Elan or the
reputation of the Product.

          (f) Xcel's sales representatives shall remain exclusively under the
authority of Xcel. Xcel shall have full responsibility for the dissemination of
information regarding the Product to its sales representatives based on
information provided by Elan.

          (g) In implementing the obligations under this Agreement, Xcel will
contribute facilities, personnel (including management and professional sales
representatives) and other resources, without charge or expense to Elan other
than as specifically set forth in this Agreement, as the parties may mutually
agree is reasonably necessary. Xcel will supervise its own sales force and be
responsible for hiring, firing, remuneration, employee benefits, incentives and
general sales training.

          (h) To the extent Xcel Samples the Product, Xcel shall conduct
Sampling exclusively through Elan as set forth in Section 9 of this Agreement.

     2.3 Obligations of Elan During Detailing Period.
         -------------------------------------------

          (a) Elan shall have exclusive responsibility and discretion with
respect to Marketing, planning and strategy, content of promotional message and
the pricing of the Product.

          (b) Elan shall have the sole right and responsibility to arrange for
all distribution of the Product, to fill all orders for Product, to effect and
account for all sales and to establish and modify the terms and conditions with
respect to the sale of the Product, including any terms and conditions relating
to or affecting the price at which the Product will be sold, any discount
attributable to payments on receivables, distribution of the Product, credit to
be granted or refused and the like.

          (c) Elan shall inform Xcel of list price increases or decreases for
the Product in the Territory at the time such information is generally announced
to the trade and to its own sales force.

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                                                          CONFIDENTIAL TREATMENT

          (d) Elan shall make available for use by Xcel hereunder the Marketing
Materials and Samples, to the extent required by Xcel, and shall provide
training to Xcel's sales force with respect to the Product as mutually agreed at
no cost to Xcel.

          (e) Elan reserves the right to Promote the Product (including
Detailing and Sampling) at any time during the Term of this Agreement (during
the Detailing Period or otherwise) and/or to retain a third party to Promote the
Product.

          (f) Elan reserves the right, at its sole discretion and at any time,
to change the Marketing strategy and tactics for the Product.

     2.4 Joint Responsibilities. During the Detailing Period, the appropriate
         ----------------------
representatives of Elan and Xcel shall meet periodically as mutually agreed to
by Elan and Xcel to discuss Marketing for the Product. Elan shall at all times
have final authority and responsibility for the Product' Marketing strategy and
for the content and selection of the Marketing Materials which it shall provide
Xcel under the terms of this Agreement. The timing and nature of Product
specific training will be mutually agreed upon within sixty (60) days of the
effective date of this Agreement.

     2.5 Ownership of Product.
         --------------------

          (a) Elan retains and shall retain all proprietary and property
interests in and to the Product. Xcel will not have nor represent that it has
any control over or proprietary or property interests in the Product. Nothing
contained in this Agreement shall be deemed to grant a license or the right or
interest in any patent, trademark or other similar property of Elan except as
may be authorized by Elan for Xcel to Co-promote the Product during the
Detailing Period pursuant to this Agreement.

          (b) The Product shall be Co-promoted by Xcel under the current
trademarks for the Product.

          (c) Xcel shall promptly advise Elan of all cases of third party
infringement of trademarks or trade names associated with the Product that come
to Xcel's attention, and shall, at the specific written request and expense of
Elan, render all assistance requested in connection with any action taken by
Elan. The control of such action with respect to the intellectual property
rights of Elan, including whether to initiate action and/or to settle, shall
solely be under the control of Elan. Xcel shall not undertake any action with
respect to infringement of such Elan trademarks or trade names without Elan's
prior written consent.

     2.6 Orders for Product. It is recognized by the parties that Xcel may from
         ------------------
time to time receive orders for the Product directly from third parties. Xcel
shall transmit said orders and purchase order numbers promptly to Elan for
acceptance or rejection at Elan's sole discretion. The parties understand that
all shipping of Product and all collection of payment for Product shall be
implemented by Elan at Elan's sole discretion.

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     3. PAYMENTS.
        --------

          (a) Within thirty (30) days of the execution of this Agreement by both
Parties, Elan shall pay Xcel a one-time fee in the amount of Two Hundred Fifty
Thousand Dollars ($250,000.00) to cover the costs incurred by Xcel in connection
with training and launch of the Product ("Start-Up Fee").

          (b) In addition to the Start-Up Fee, Elan shall pay to Xcel a royalty
on Net Sales of the Product throughout the Royalty Term at the rates, and
subject to the limitations set forth on Exhibit A hereto ("Royalty Payments").
Elan shall make such Royalty Payments to Xcel within thirty (30) days of the end
of each calendar quarter during the Royalty Term. Notwithstanding the foregoing,
(i) in no event shall the Royalty Payment for each of the first three calendar
quarters for any calendar year exceed twenty five percent (25%) of the annual
cap on Royalty Payments for such calendar year set forth in Exhibit A and (ii)
the Royalty Payment for the fourth calendar quarter of each calendar year shall
be in an amount so that the aggregate Royalty Payments for such calendar year
equal the aggregate Royalty Payments Xcel is to receive for such calendar year
as set forth in Exhibit A.

          (c) In the event the Product is not available for sale (whether as a
result of any action or inaction of Elan, any governmental or regulatory
authority or for any other reason) for any extended period of time during the
Royalty Term, Elan will pay to Xcel a royalty on Net Sales of an alternative
Elan product for the remainder of the Royalty Term, such alternative product to
be identified and selected by Elan in good faith and in Elan's sole discretion;
provided, however, that the alternative Elan product and the royalty rate shall
be selected so that the total royalty payments made by Elan to Xcel on the Net
Sales of such alternative product are as nearly equivalent as possible to the
estimated Royalty Payments Xcel would receive if the Product remained available
for sale, on an uninterrupted basis throughout the Royalty Term.

          (d) The Royalty Payments shall be paid by Elan to Xcel as set forth
above by wire transfer of immediately available funds to the account designated
by Xcel prior to the date on which such payment is due. Elan shall provide a
report to Xcel no later than thirty (30) days after the end of each calendar
quarter during the Royalty Term setting forth (1) the aggregate Net Sales of
Product in the Territory for such quarter and for the current calendar year and
(2) the Royalty Payment owing to Xcel for such calendar quarter, all in
sufficient detail to permit Xcel to determine whether the calculation of Net
Sales and Royalty Payment is accurate. Elan shall cause its representatives and
employees to be available to Xcel to discuss any questions or comments of Xcel
concerning such report. The Royalty Payments owing to Xcel for each calendar
quarter shall be paid on the date such report is delivered to Xcel.

          (e) Elan shall keep for a period of four (4) years after the end of
each calendar year complete and accurate records of sales and all other
information necessary to accurately calculate Net Sales of Product for such
calendar year as required pursuant to this Section 3(e). Xcel shall have the
right through its representatives or an independent, certified public accountant
to audit such records at the place or places of business where such records are
customarily kept in order to verify the accuracy of the reports of Net Sales of
Product made hereunder. Such audits may be exercised during normal business
hours upon reasonable prior

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                                                          CONFIDENTIAL TREATMENT

written notice to Elan. Xcel shall bear the full cost of such audit unless such
audit discloses a variance of more than five percent (5%) from the amount of any
Royalty Payment calculated under this Agreement, in which case Elan shall bear
the full cost of such audit. In the event that Elan disputes the results of
Xcel's audit, Elan and Xcel shall attempt to resolve such dispute in good faith.
Any amounts that are determined or agreed to be due and owing by Elan to Xcel or
by Xcel to Elan following such audit shall be paid within ten (10) days
thereafter, together with any interest due thereon (at a rate equal to seven
percent (7%) per annum).

          (f) All sales of the Product will continue to be considered Elan
revenue for accounting purposes. All of the provisions of this Section 3 shall
survive the expiration or any early termination of this Agreement.

     4. RELATIONSHIP AND PUBLICITY
        --------------------------

          4.1 Relationship of Parties. Neither party shall have any
              -----------------------
responsibility for the hiring, termination, compensation or employee benefits of
the other party's employees. No employees or representatives of either party
shall have any authority to bind or obligate the other party for any sum or in
any manner whatsoever, or to create or impose any contractual or other liability
on the other party without said party's authorized written approval. For all
purposes, and notwithstanding any provision of this Agreement to the contrary,
Xcel's legal relationship under this Agreement to Elan shall be that of an
independent contractor.

          4.2 Public Announcements. Other than as required for the performance
              --------------------
of its duties under this Agreement, neither party may in any event use the other
party's name or the names of the other party's Affiliates for any purpose, nor
issue any press release or make public, the existence of this Agreement or its
terms, without the express prior written consent of the other party or the other
party's Affiliate, as the case may be, in their sole and absolute discretion,
except as may be required by applicable Law upon the advice of counsel and only
if the disclosing Party provides the non-disclosing Party with an opportunity to
first review the release or other public announcement.

     5. REGULATORY COMPLIANCE DURING THE DETAILING PERIOD.
        -------------------------------------------------

          5.1 General. Xcel shall comply with all applicable laws and
              -------
regulations and all of the terms and conditions of this Agreement in the
performance of its duties hereunder.

          5.2 Recalls. At Elan's request and expense, Xcel shall assist Elan in
              -------
handling any recalls of the Product from customers to whom Xcel Co-promoted the
Product and to whom Elan did not Co promote the Product. Xcel will make
available to Elan, upon request, all pertinent records of Xcel which Elan may
request to assist Elan in effecting any such recall.

          5.3 Adverse Drug Events. For the reporting of adverse drug events, the
              -------------------
responsibilities of the parties are as follows:

               (a) All technically competent employees of Xcel, including Xcel's
sales representatives, who become aware of any adverse event as defined by 21
C.F.R. (S) 314.80 shall use the following procedures for reporting the event(s)
to Elan.

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                                                          CONFIDENTIAL TREATMENT

               (b) Any adverse event must be reported to Elan in writing within
forty-eight (48) hours of knowledge of the event to Manager, Regulatory Affairs
at (973) 267-2670.

               (c) Elan will be solely responsible for follow-up for all reports
of adverse events and for the preparation and submission to the FDA of all
safety reports required per 21 C.F.R. (S)314.80.

               (d) For all adverse drug events, Xcel and its employees will not
make any statement or give any opinion (written or verbal) to anyone that could
be reasonably construed as an admission of fault on Elan's part or a promise
that Elan will compensate anyone. Xcel and its employees may only promise to
report the adverse drug events and follow the appropriate procedures as outlined
herein.

               (e) Xcel and Elan will each appoint a contact person to address
reporting issues as they arise.

     5.4 Product Complaints.
         ------------------

               (a) If any employee of Xcel, including Xcel's sales
representatives, receives a complaint concerning any of the Product, such
complaints must be referred to Elan in a timely fashion at the contact point to
be provided by Elan in writing.

               (b) If any employee of Xcel, including Xcel's sales
representatives, receives notice of a serious Product tampering, certain
individuals at Elan must immediately be called, such contact information to be
provided by Elan in writing.

               (c) If any employee of Xcel, including Xcel's sales
representatives, receives notice of or any information concerning any incident
that causes Product or its labeling to be mistaken for, or applied to another
article, certain individuals at Elan must immediately be called, such contact
information to be provided by Elan in writing.

     5.5 Product Inquiries.
         -----------------

               (a) For questions which Xcel sales representatives are unable to
answer concerning Product identification, Product ingredients or
stability/storage information, Xcel shall contact Elan, such contact information
to be provided by Elan in writing.

               (b) For medical inquiries, including those related to information
outside of labeling or which Xcel sales representatives are unable to answer, a
form 8202 (Health Care Professional Request for Medical Information) must be
completed and sent to Elan at the contact information to be provided by Elan in
writing. Elan shall also provide in writing contact information for emergency
medical inquiries.

               (c) All responses to form 8202 inquiries from patients, the
medical profession or other third parties shall be given solely by Elan.

     5.6 Additional Responsibilities of the Parties.
         ------------------------------------------

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                                                          CONFIDENTIAL TREATMENT

               (a) Xcel shall report promptly to Elan all other significant
information concerning any complaint of any kind regarding the Product, the
labeling of such Product, quality or packaging, including but not limited to,
any adverse drug event not reported pursuant to Section 5.3 above.

               (b) It is understood and agreed that the reporting requirements
set forth in this Section 5 are based on Elan policies and procedures and
regulatory reporting requirements. Elan shall promptly advise Xcel in writing in
the event of a change of the person or phone number for any contacts specified
above.

     6. WARRANTIES AND INDEMNITIES.
        --------------------------

          6.1 Mutual Warranties. Xcel warrants and represents to Elan that it
              -----------------
has the full right and authority to enter into this Agreement, and that it is
not aware of any impediment that would inhibit its ability to perform its
obligations under this Agreement (including but not limited to any intellectual
property rights of any third parties). Elan warrants and represents to Xcel that
it has the full right and authority to enter into this Agreement, and that it is
not aware of any impediment that would inhibit its ability to perform its
obligations under this Agreement (including but not limited to any intellectual
property rights of any third parties).

          6.2 Indemnification by Elan. Elan shall indemnify, reimburse, defend
              -----------------------
and hold harmless Xcel, its Affiliates, and their respective officers,
directors, employees; agents, successors and assigns from and against any and
all costs, losses, liabilities, damages, lawsuits, deficiencies, claims and
expenses (including interest, penalties and reasonable fees and disbursements of
attorneys paid in connection with the investigation, defense or settlement of
any of the foregoing) (collectively, the "Damages"), to the extent incurred in
connection with, arising out of, resulting from or incident to (i) any
inaccuracy or breach of any covenant, representation, warranty or other
agreement of Elan herein, or (ii) the development, manufacture, marketing, sale,
distribution or use of the Product, except in either case to the extent such
Damages result from any inaccuracy or breach of any covenant, representation,
warranty or other agreement of Xcel herein or from Xcel's gross negligence or
willful misconduct. Xcel shall notify Elan in writing of any such claims as
follows: (1) within fifteen (15) days of Xcel's receipt of service of process
for the commencement of suit, or (2) for non-litigated matters, within thirty
(30) days of Xcel's receipt of a written claim for Damages.

          6.3 Indemnification by Xcel. Xcel shall indemnify, reimburse, defend
              -----------------------
and hold harmless Elan, its Affiliates, and their respective officers,
directors, employees, agents, successors and assigns from and against any and
all Damages, to the extent incurred in connection with, arising out of,
resulting from or incident to any inaccuracy or breach of any covenant,
representation, warranty or other agreement of Xcel herein, except to the extent
such Damages result from any inaccuracy or breach of any covenant,
representation, warranty or other agreement of Elan herein or from Elan's gross
negligence or willful misconduct. Elan shall notify Xcel in writing of any such
claims as follows: (1) within fifteen (15) days of Elan's receipt of service of
process for the commencement of suit, or (2) for non-litigated matters, within
thirty (30) days of Elan's receipt of a written claim for Damages.

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          6.4 Defense of Actions. As a condition precedent for the operation of
              ------------------
the above indemnifications, the indemnified party must notify the indemnifying
party upon receipt of written notice of any actual or alleged claim for Damages
within the timeframes set forth above, and must allow the indemnifying party, at
its discretion and cost, to undertake and control the defense of such claims
through attorneys reasonably satisfactory to the indemnified party. If a claim
for Damages is made, the indemnified party shall diligently assist the
indemnifying party and cooperate in defending against and the gathering of all
information with respect to any such incident, including but not limited to the
time, place, and circumstances of the incident, and the names and addresses of
the affected parties and witnesses. The indemnified party shall not, except at
its own cost, voluntarily make or agree to make any payment or incur any expense
in connection with any such incident or claim for Damages without the prior
written consent of the indemnifying party.

          6.5 Insurance Requirements. Xcel shall carry and maintain during the
              ----------------------
Detailing Period and for a period of two (2) years thereafter at its own expense
and with financially sound and reputable insurance companies, insurance in such
amounts, with such deductibles and covering such risks as is customarily carried
by companies engaged in the same or similar businesses and owning similar
properties in the localities where Xcel operates its business. Upon the request
of Elan, Xcel shall furnish the Elan from time to time with full information as
to the insurance carried by it and, if so requested, copies of all such
insurance policies. Xcel shall also furnish to Elan from time to time upon the
request of Elan a certificate of Xcel's insurance broker or other insurance
specialist stating that all premiums then due on the policies relating to Xcel's
insurance have been paid and that such policies are in full force and effect.
All insurance policies required under this Section shall provide that they shall
not be terminated or cancelled nor shall any such policy be materially changed
without at least 30 days' prior written notice to Xcel and Elan.

     7. Audit of Xcel Sample Records by Elan. Xcel shall keep copies of any
        ------------------------------------
documentation regarding Samples, to the extent Xcel Samples the Product. Such
records shall be retained for not less than (2) years following the expiration
or termination of the Detailing Period, and made available at an Xcel facility
for audit, upon Elan's request.

     8. TERM AND TERMINATION
        --------------------

          8.1 Term. This Agreement shall begin on the date first set forth above
              ----
and shall continue until December 31, 2010, unless terminated earlier as set
forth herein, or unless renewed by mutual written agreement of the parties. Such
period, as terminated early or renewed, shall herein be referred to as the
"Term."

          8.2 Termination by Either Party. Either party may terminate this
              ---------------------------
Agreement at any time upon thirty (30) days prior written notice in the event
that the other party materially breaches this Agreement and fails to remedy or
cure such breach or default within those thirty (30) days.

          8.3 Expiration of Detailing Period/Early Termination. Upon the
              ------------------------------------------------
expiration of the Detailing Period, or upon the earlier termination of the
Agreement by either Party, Xcel will return to Elan all Marketing Materials, any
Samples, and other sales or sales training materials in

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                                                          CONFIDENTIAL TREATMENT

the possession of Xcel and its sales force as promptly as practical after the
date thereof except for the verification file as provided in Section 2.2(c)
above.

          8.4 No Prejudice. Termination of this Agreement shall be without
              ------------
prejudice to (a) any remedies which any party may then or thereafter have
hereunder or at law, (b) Xcel's right to receive any amounts accrued under this
Agreement prior to the termination date but which are unpaid or become payable
thereafter (as stated above) and (c) either party's right to obtain performance
of any obligation that survives the expiration or early termination of this
Agreement as provided for in this Agreement.

     9. SAMPLES
        -------

          9.1 Sampling by Xcel. Xcel shall distribute Samples only during the
              ----------------
Detailing Period and only under the circumstances and to the extent mutually
agreed to by Elan and Xcel.

          9.2 Forecasting. To the extent Xcel Samples the Product, Xcel shall
              -----------
provide to Elan written forecasts of its Sampling needs on a quarterly basis.
Each forecast shall specify the estimated quantities of Product that will be
required for Sampling, and shall be submitted no later than the first day of the
first month of each quarter. Each forecast shall refer to the estimated needs
for the following quarter, and shall also provide an update, if any, to the
previously submitted forecast with respect to the current quarter.

          9.3 Provision of Samples. To the extent requested by Xcel, Elan shall
              --------------------
use commercially reasonably efforts to make available quantities Samples for use
by Xcel in Co-promoting the Product. Elan shall provide to Xcel the Xcel Sample
Shipment Request Form upon which Xcel shall obtain the signature of the
requesting physician and forward to Elan at the contact information to be
provided by Elan. Such requests shall be placed no more frequently than once in
any thirty (30) day period and shall be subject to approval of Elan.

          9.4 Handling of Samples. To the extent Xcel Samples the Product, Xcel
              -------------------
shall notify Elan immediately upon learning that any Samples shipped by Elan to
Xcel have been lost or have not been received as scheduled. Xcel shall also
notify Elan promptly upon learning information which could raise a suspicion
that any of the Samples shipped to Xcel have not been properly handled or had
been handled in a manner prohibited by law. Xcel shall take all steps necessary
to aid and support Elan in a full investigation of any suspected mishandling of
any such Samples.

     10. CONFIDENTIALITY
         ---------------

          10.1 Requirements.
               ------------

               (a) Each party agrees not to use Confidential Information (as
hereinafter defined) furnished by the other party for any purpose other than for
purposes of performing its obligations under this Agreement. Each party will
treat Confidential Information furnished by the other party with the same degree
of care as it treats its own proprietary information (but in no event less than
a reasonable degree of care) and will not disclose the same, for a period of
five (5) years after the termination of this Agreement, to any third party
without the prior written consent of the party which furnished such
information.

                                       11

<PAGE>

                                                          CONFIDENTIAL TREATMENT

               (b) If, to carry out its obligations under this Agreement, and
with the prior written consent of the other party, either party must disclose
Confidential Information of the other party to a third party, the party seeking
to make such disclosure shall require any such third party to first be bound by
the confidentiality provisions of this Agreement by requiring such third party
to enter into an appropriate written confidentiality agreement. The language of
any such confidentiality agreement must have prior written approval of the other
party. The party seeking to make such disclosure shall supply the other party
with a copy of all confidentiality agreements entered into pursuant to this
provision. This provision shall not be applicable to Confidential Information
disclosed pursuant to Section 10.2(e) below.

          10.2 Confidential Information. "Confidential Information" refers to
               ------------------------
all proprietary technical, business and Marketing information of the other party
(including, without limitation, all sales and Marketing plans) disclosed by one
party to the other except:

               (a) information which at the time of disclosure is in the public
domain or thereafter becomes part of the public domain through no act of the
receiving party amounting to a breach of this Agreement;

               (b) information which the receiving party can establish by
competent written proof was in its possession at the time of disclosure by the
disclosing party and was not acquired, directly or indirectly, from the
disclosing party;

               (c) information which the receiving party receives from a third
party; provided however, that such information was not unlawfully obtained by
said third party, directly or indirectly from the disclosing party;

               (d) information or date which is independently developed by the
receiving party without the use of the disclosing party's Confidential
Information; and

               (e) information which is required to be disclosed to governmental
agencies or by legal process, in which case the receiving party will notify the
disclosing party and cooperate reasonably with the disclosing party to seek
confidential treatment of the information.

          10.3 Return of Confidential Information. Upon termination of this
               ----------------------------------
Agreement and upon the request of the disclosing party, the receiving party
shall return all such Confidential Information and copies thereof in its
possession, except that each party may keep one copy of such Confidential
Information in its Law Department confidential files solely for archival
purposes and this copy will not be distributed in any manner other than as
provided in Section 10.2, without the express prior written permission of the
disclosing party.

     11. MISCELLANEOUS
         -------------

          11.1 Force Majeure. Neither party shall be liable to the other for
               -------------
delays in delivery of Product or failure to perform any provision of this
Agreement if such failure or delay results from an act of God, war conditions,
sabotage, governmental regulations or actions, embargo, fire, strike, labor
trouble or any other cause beyond the affected party's reasonable control. Upon
the occurrence of any such event which results or will result in failure or
delay to

                                       12

<PAGE>

                                                          CONFIDENTIAL TREATMENT

perform hereunder as described above, the party whose performance is hereby
prevented or delayed shall immediately give notice of such occurrence and the
effect and/or anticipated effect of such occurrence on the performance of such
party to the other party. The party whose performance is so affected shall use
reasonable efforts to minimize disruptions in performance and to resume full
performance hereunder as soon as possible under the circumstances.

          11.2 Severability. If and to the extent that any provision (or any
               ------------
part thereof) of this Agreement is held to be invalid, illegal or unenforceable,
such holding shall in no way affect the validity, legality or enforceability of
the remainder of this Agreement. In the event any provision of this Agreement
shall be held invalid, illegal or unenforceable, the parties shall negotiate in
good faith to substitute a valid, legal and enforceable provision which, insofar
as practical, implements the purposes hereof.

          11.3 Assignability. This Agreement shall not be assignable nor the
               -------------
rights or obligations hereunder transferred in any way by Xcel except by prior
written consent of Elan in its absolute and sole discretion, except that no
consent of Elan shall be required for any assignment in connection with a sale
or merger by Xcel of substantially all of its assets or business.

          11.4 Modifications and Amendments. This Agreement shall not be
               ----------------------------
modified or otherwise amended except pursuant to an instrument in writing
executed and delivered by each of the parties hereto.

          11.5 Notices. Any notice to be given hereunder by either party to the
               -------
other party shall be in writing and delivered personally, or sent by nationally
recognized overnight courier or delivery service or postage prepaid registered
or certified U.S. Mail or via facsimile transmission and shall be deemed given
when delivered, if by personal delivery or overnight delivery service, or upon
five days after deposit in the mail if so sent by U.S. mail, and shall be
addressed:

     If to Xcel:       Xcel Pharmaceuticals, Inc.
                       6363 Greenwich Drive, Suite 100
                       San Diego, California 92122
                       Attention: President
                       Fax: (858) 202-2799

     If to Elan:       Elan Pharmaceuticals, Inc.
                       800 Gateway Boulevard
                       South San Francisco, CA 94080
                       Attention: President
                       Fax: (650) 553-7165

     With a Copy to:   Elan Pharmaceuticals, Inc.
                       800 Gateway Boulevard
                       South San Francisco, CA 94080
                       Attention:  Vice President, Commercial and Legal Affairs
                       Fax:  (650) 553-7165

                                       13

<PAGE>

                                                          CONFIDENTIAL TREATMENT

or to such other address as either party shall hereafter designate by notice
given in accordance with this Section.

          11.6 Governing Law. This Agreement shall be governed by and shall be
               -------------
construed in accordance with the laws of the State of California.

          11.7 Waiver. The failure of either party to require the performance of
               ------
any term of this Agreement, or the waiver of either party of any breach of this
Agreement, shall not prevent a subsequent exercise or enforcement of such terms
or be deemed a waiver of any subsequent breach of the same or any other term of
this Agreement.

          11.8 No Agency. Nothing in this Agreement shall be construed to make
               ---------
the relationship of Elan and Xcel herein a joint venture, association or
partnership or make the parties agents of one another. The parties are not
authorized to act as agents of one another as to any matter or make any
representations to any third parties indicating or implying the existence of any
such agency relationship.

          11.9 Survival of Certain Provisions. The provisions of this Agreement
               ------------------------------
set forth in Sections 1,2.5, 3, 6, 7, 8, 10, and 11 and any remedies for the
breach thereof shall survive the expiration or any early termination of this
Agreement.

          11.10 Headings. The Section headings contained in this Agreement are
                --------
for reference purposes only and shall not affect in any way the meaning and
interpretation of this Agreement.

          11.11 Counterparts. This Agreement may be executed in two or more
                ------------
counterparts, each of which shall be deemed to be an original and all of which
shall be deemed to constitute the same Agreement.

          11.12 Entire Agreement. This Agreement constitutes the entire
                ----------------
agreement and understanding between the parties and supersedes all previous
understandings, agreement and representations between the parties, written or
oral, with respect to the subject matter hereof, other than any currently
effective confidentiality or nondisclosure agreement between the parties or
their Affiliates.

                  [remainder of page intentionally left blank]

                                       14

<PAGE>

                                                          CONFIDENTIAL TREATMENT

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed by their duly authorized officers as of the day and year first above
written.

ELAN PHARMACEUTICALS, INC.             XCEL PHARMACEUTICALS, INC.

By:    /s/ Erle Mast                   By:     /s/ Michael T. Borer
       -------------------------               ----------------------------
       Erle Mast                               Name:  Michael T. Borer
       Chief Financial Officer                 Title:  President and CEO

                                       15

<PAGE>

                                                          CONFIDENTIAL TREATMENT

                                    SCHEDULES
                                    ---------

Schedules
---------
Exhibit A - Royalty Rates on Net Sales

                                    Exhibit A

                           Royalty Rates on Net Sales
                           --------------------------

   [CONFIDENTIAL               [CONFIDENTIAL        [CONFIDENTIAL TREATMENT
   -------------               -------------        -----------------------
     TREATMENT                   TREATMENT                 REQUESTED]
     ---------                   ---------                 ----------
     REQUESTED]                  REQUESTED]
    -----------                  ----------

[CONFIDENTIAL TREATMENT REQUESTED]
----------------------------------

                                       16<PAGE>

                                                                    Exhibit 10.8

                               INDEMNITY AGREEMENT

         THIS INDEMNITY AGREEMENT ("Agreement"), effective as of March __, 2001,
is entered into by and between MJBC CORP., a Delaware corporation (the
"Corporation"), and [Name of Executive] ("Executive"). Capitalized terms used
but not immediately defined shall have the meanings ascribed to such terms in
Section 16 below.
----------

                              W I T N E S S E T H:

         WHEREAS, Executive is a member of the board of directors of the
Corporation (the "Board of Directors") or is an officer of the Corporation, and
in such capacity is performing a valuable service for the Corporation;

         WHEREAS, competent persons have become reluctant to serve corporations
as directors, officers or in other capacities unless they are provided with
protection from the risk of personal claims and actions against them arising out
of their service to and activities on behalf of such corporations;

         WHEREAS, Executive is willing to serve, continue to serve, and take on
additional service for or on behalf of the Corporation on the condition that he
or she and each Indemnified Party (defined below) be indemnified as herein
provided; and

         WHEREAS, it is intended that Executive and each of the other
Indemnified Parties shall be paid promptly by the Corporation all amounts
necessary to effectuate in full the indemnity provided herein.

         NOW, THEREFORE, in consideration of the premises and the covenants in
this Agreement, and intending to be legally bound hereby, the parties hereto
agree as follows:

         1.    Services by Executive. Executive agrees to serve as a director or
               ---------------------
officer of the Corporation so long as he is duly appointed or elected and
qualified in accordance with the applicable provisions of the Corporation's
Certificate of Incorporation, as amended from time to time (the "Certificate of
Incorporation"), and Bylaws of the Corporation and until such time as he resigns
or fails to stand for election or is removed from his position. Executive may at
any time and for any reason resign or be removed from such position (subject to
any other contractual obligation or other obligation imposed by operation of
law), without affecting the indemnification agreed to hereunder, in which event
the Corporation shall have no obligation under this Agreement to continue
Executive in any such position.

         2.    Proceedings Other than Proceedings by or in the Right of the
               ------------------------------------------------------------
Corporation.
-----------

               (a)    The Corporation shall indemnify Executive, each Affiliate
(as such term is defined in the Securities Exchange Act of 1934, as amended (the
"Exchange Act")) of Executive and each officer, director, partner, employee,
consultant, agent (other than professional advisors) and Affiliate thereof, as
well as any person who controls (within the meaning of Section 15 of the
Exchange Act) any of the foregoing or who may be liable with respect to any of
the foregoing (each such person an "Indemnified Party"), against Expenses and
Liabilities incurred

<PAGE>

in connection with any Proceeding arising out of acts or omissions of Executive
occurring during and arising out of or directly related to Executive's service
as a director or as an officer of the Corporation, other than a Proceeding by or
in the right of the Corporation against an Indemnified Party, to the fullest
extent permitted by applicable law or the Certificate of Incorporation (as such
law or the Certificate of Incorporation may be amended from time to time, but
only to the extent that any such amendment permits the Corporation to provide
broader indemnification rights than such law or the Certificate of Incorporation
permitted the Corporation to provide before such amendment), so long as each
Indemnified Party has acted in good faith and in a manner each Indemnified Party
reasonably believed to be in, or not opposed to, the best interests of the
Corporation and, with respect to any criminal Proceeding, each Indemnified Party
had no reasonable cause to believe that the Indemnified Party's conduct was
unlawful.

               (b)    An Indemnified Party shall be paid promptly by the
Corporation all amounts necessary to effectuate the foregoing indemnity.

         3.    Indemnification for Proceedings by or in the Right of the
               ---------------------------------------------------------
Corporation.
-----------

               (a)    The Corporation shall indemnify each Indemnified Party
against Expenses and Liabilities incurred in connection with any Proceeding by
or in the right of the Corporation against an Indemnified Party and arising out
of acts or omissions of Executive occurring during and arising out of or
directly related to Executive's service as a director or as an officer of the
Corporation to the fullest extent permitted by applicable law or the Certificate
of Incorporation (as such law or the Certificate of Incorporation may be amended
from time to time, but only to the extent that any such amendment permits the
Corporation to provide broader indemnification rights than such law or the
Certificate of Incorporation permitted the Corporation to provide before such
amendment), so long as each Indemnified Party acted in good faith and in a
manner each Indemnified Party reasonably believed to be in or not opposed to the
best interests of the Corporation and except that no indemnification shall be
                                  ---
made in respect of any claim, issue or matter as to which an Indemnified Party
shall have been adjudged to be liable to the Corporation unless and only to the
extent that the Delaware Court of Chancery or the court in which such Proceeding
was brought shall determine upon application that, despite the adjudication of
liability but in view of all the circumstances of the case, the Indemnified
Party is fairly and reasonably entitled to indemnification for Expenses and
Liabilities incurred in connection with any such claim, issue or matter (as the
Delaware Court of Chancery or such other court shall deem proper).

               (b)    Each Indemnified Party shall be paid promptly by the
Corporation all amounts necessary to effectuate the foregoing indemnity.

               (c)    Indemnification under Certificate of Incorporation. The
                      --------------------------------------------------
right to indemnification provided for (or as may be provided for in the future)
in the Certificate of Incorporation (as the Certificate of Incorporation may be
amended from time to time, but only to the extent that any such amendment
permits the Corporation to provide broader indemnification rights than the
Certificate of Incorporation permitted the Corporation to provide before such
amendment) shall be presumed to have been relied upon by Executive in serving or
continuing to serve the Corporation and shall be enforceable as a contract
right.

                                      -2-

<PAGE>

         4.    Indemnification for Expenses of a Party Who is Wholly or Partly
               ---------------------------------------------------------------
Successful. Notwithstanding any other provision of this Agreement, to the extent
----------
that an Indemnified Party is a party to and is successful, on the merits or
otherwise, in any Proceeding arising out of acts or omissions of Executive
occurring during Executive's service as a director or officer of the Corporation
or any subsidiary of the Corporation, he or she shall be indemnified against
Expenses and Liabilities actually and reasonably incurred by him or her or on
his or her behalf in connection therewith. If the Indemnified Party is not
wholly successful in such Proceeding but is successful, on the merits or
otherwise, as to one or more but less than all claims, issues or matters in such
Proceeding, the Corporation shall indemnify the Indemnified Party against all
Expenses and Liabilities actually and reasonably incurred by him or her or on
his or her behalf in connection with each successfully resolved claim, issue or
matter. For the purposes of this Section 4 and without limiting the foregoing,
                                 ---------
the termination of any claim, issue or matter in any such Proceeding by
dismissal, with or without prejudice, shall be deemed to be a successful result
as to such claim, issue or matter.

         5.    Advancement of Expenses. All reasonable Expenses incurred by or
               -----------------------
on behalf of an Indemnified Party shall be advanced from time to time by the
Corporation to the Indemnified Party within thirty (30) days after the
                                            ------  --
Corporation's receipt of a written request for an advance of Expenses, whether
prior to or after final disposition of a Proceeding (except to the extent that
there has been a Final Adverse Determination that the Indemnified Party is not
entitled to be indemnified for such Expenses). The written request for an
advancement of any and all Expenses under this Section 5 shall contain
                                               ---------
reasonable detail of the Expenses incurred by the Indemnified Party. The
Indemnified Party hereby agrees to repay the amounts advanced if it is
ultimately determined that the Indemnified Party is not entitled to be
indemnified pursuant to the terms of this Agreement.

         6.    Limitations. The foregoing indemnity and advancement of Expenses
               -----------
shall apply only to the extent that an Indemnified Party has not been
indemnified and reimbursed pursuant to such insurance as the Corporation may
maintain for the Indemnified Party's benefit, or otherwise; provided, however,
                                                            --------  -------
that notwithstanding the availability of such other indemnification and
reimbursement, an Indemnified Party may claim indemnification and advancement of
Expenses pursuant to this Agreement by assigning to the Corporation, at its
request, the Indemnified Party's claims under such insurance to the extent the
Indemnified Party has been paid by the Corporation.

         7.    Insurance and Funding. The Corporation may purchase and maintain
               ---------------------
insurance to protect itself and/or each Indemnified Party against any Expenses
and Liabilities in connection with any Proceeding to the fullest extent
permitted by applicable laws. The Corporation may create a trust fund, grant an
interest or use other means (including, without limitation, a letter of credit)
to ensure the payment of such amounts as may be necessary to effect
indemnification or advancement of Expenses as provided in this Agreement.

         8.    Procedure for Determination of Entitlement to Indemnification.
               -------------------------------------------------------------

               (a)    Whenever an Indemnified Party believes that he or she is
entitled to indemnification pursuant to this Agreement, the Indemnified Party
shall submit a written request for indemnification to the Corporation. Any
request for indemnification shall include sufficient

                                      -3-

<PAGE>

documentation or information reasonably available to Executive to support his or
her claim for indemnification. The Indemnified Party shall submit such claim for
indemnification within a reasonable time not to exceed five (5) years after any
                                                       ----  -
judgment, order, settlement, dismissal, arbitration award, conviction,
acceptance of a plea of nolo contendere or its equivalent, final termination or
other disposition or partial disposition of any Proceeding, whichever is the
later date for which the Indemnified Party requests indemnification. The
President or the Secretary or other appropriate officer shall, promptly upon
receipt of the Indemnified Party's request for indemnification, advise the Board
of Directors in writing that the Indemnified Party has made such request.
Determination of the Indemnified Party's entitlement to indemnification shall be
made not later than ninety (90) days after the Corporation's receipt of his or
                    ------  --
her written request for such indemnification.

               (b)    An Indemnified Party shall be entitled to select the forum
in which the Indemnified Party's request for indemnification will be heard,
which selection shall be included in the written request for indemnification
required in Section 8(a) above. The forum shall be any one of the following:
            ------------

                      (i)    The stockholders of the Corporation;

                      (ii)   A quorum of the Board of Directors consisting of
               Disinterested Directors; or

                      (iii)  Independent legal counsel, who shall make the
               determination in a written opinion.

If the Indemnified Party fails to make such designation, his or her claim shall
be determined by an appropriate court of the State of Delaware.

               (c)    An Indemnified Party shall cooperate with the person,
persons or entity making such determination with respect to the Indemnified
Party's entitlement to indemnification, including providing to such person,
persons or entity upon reasonable advance request any documentation or
information which is not privileged or otherwise protected from disclosure and
which is reasonably available to the Indemnified Party and reasonably necessary
to such determination. Any costs or expenses (including attorneys' fees and
disbursements) incurred by the Indemnified Party in so cooperating with the
person, persons or entity making such determination shall be borne by the
Corporation (irrespective of the determination as to the Indemnified Party's
entitlement to indemnification) and the Corporation hereby indemnifies and
agrees to hold the Indemnified Party harmless therefrom.

         9.    Presumption and Effects of Certain Proceedings.
               ----------------------------------------------

               (a)    In making a determination with respect to entitlement to
indemnification hereunder, the person, persons or entity making such
determination shall presume that the Indemnified Party is entitled to
indemnification under this Agreement if an Indemnified Party has submitted a
request for indemnification in accordance with Section 8(a) above, and the
                                               ------------
Corporation shall have the burden of proof to overcome that presumption in
connection with the making by any person, persons or entity of any determination
contrary to that presumption.

                                      -4-

<PAGE>

               (b)    If the person, persons or entity empowered or selected
under Section 8(b) above to determine whether the Indemnified Party is entitled
to indemnification shall not have made a determination within ninety (90) days
                                                              ------  --
after receipt by the Corporation of the request therefor, the requisite
determination of entitlement to indemnification shall be deemed to have been
made and the Indemnified Party shall be entitled to such indemnification, absent
(i) a misstatement by the Indemnified Party of a material fact, or an omission
of a material fact necessary to make the Indemnified Party's statement not
materially misleading, in connection with the request for indemnification, or
(ii) prohibition of such indemnification under applicable law; provided,
                                                               --------
however, that such ninety (90) day period may be extended for a reasonable time,
-------            ------  --
not to exceed an additional ninety (90) days, if the person, persons or entity
                            ------  --
making the determination with respect to entitlement to indemnification in good
faith require(s) such additional time for the obtaining or evaluating of
documentation and/or information relating thereto.

         10.   Fees and Expenses of Independent Legal Counsel. The Corporation
               ----------------------------------------------
agrees to pay the reasonable fees and expenses of Independent Legal Counsel
should such counsel be retained to make a determination of an Indemnified
Party's entitlement to indemnification pursuant to Section 8 above, and to fully
                                                   ---------
indemnify such Counsel against any and all expenses and losses incurred by any
of them arising out of or relating to this Agreement or their engagement
pursuant hereto.

         11.   Remedies of Executive.
               ---------------------

               (a)    In the event that (i) a determination pursuant to Section
                                                                        -------
8 above is made that an Indemnified Party is not entitled to indemnification,
-
(ii) advances of Expenses are not made pursuant to this Agreement, (iii) payment
has not been timely made following a determination of entitlement to
indemnification pursuant to this Agreement, or (iv) an Indemnified Party
otherwise seeks enforcement of this Agreement, the Indemnified Party shall be
entitled to a final adjudication in an appropriate court of the State of
Delaware of his or her rights. The Corporation shall not oppose the Indemnified
Party's right to seek any such adjudication.

               (b)    In the event that a determination that an Indemnified
Party is not entitled to indemnification, in whole or in part, has been made
pursuant to Section 8 above, the decision in the judicial proceeding provided in
            ---------
Section 11(a) above shall be made de novo and the Indemnified Party shall not be
-------------
prejudiced by reason of a determination that he or she is not entitled to
indemnification.

               (c)    If a determination that an Indemnified Party is entitled
to indemnification has been made pursuant to Sections 8 or 9 above or otherwise
                                             ----------    -
pursuant to the terms of this Agreement, the Corporation shall be bound by such
determination in the absence of (i) a misrepresentation of a material fact by
the Indemnified Party or (ii) a specific finding (which has become final) by an
appropriate court of the State of Delaware that all or any part of such
indemnification is expressly prohibited by law.

               (d)    In any court proceeding pursuant to this Section 11, the
                                                               ----------
Corporation shall be precluded from asserting that the procedures and
presumptions of this Agreement are not

                                      -5-

<PAGE>

valid, binding and enforceable. The Corporation shall stipulate in any such
court that the Corporation is bound by all the provisions of this Agreement and
is precluded from making any assertion to the contrary.

               (e)    Expenses reasonably incurred by an Indemnified Party in
connection with his or her request for indemnification under this Agreement,
seeking enforcement of this Agreement or to recover damages for breach of this
Agreement shall be borne by the Corporation.

         12.   Modification, Waiver, Termination and Cancellation. No
               --------------------------------------------------
supplement, modification, termination, cancellation or amendment of this
Agreement shall be binding unless executed in writing by both of the parties
hereto. No waiver of any of the provisions of this Agreement shall be deemed or
shall constitute a waiver of any other provisions hereof (whether or not
similar), nor shall such waiver constitute a continuing waiver.

         13.   Notice by Executive and Defense of Claim. An Indemnified Party
               ----------------------------------------
shall promptly notify the Corporation in writing upon being served with any
summons, citation, subpoena, complaint, indictment, information or other
document relating to any matter, whether civil, criminal, administrative or
investigative, but the omission so to notify the Corporation will not relieve it
from any liability which it may have to an Indemnified Party if such omission
does not prejudice the Corporation's rights. If such omission does prejudice the
Corporation's rights, the Corporation will be relieved from liability only to
the extent of such prejudice; nor will such omission relieve the Corporation
from any liability which it may have to an Indemnified Party otherwise than
under this Agreement. With respect to any Proceeding as to which an Indemnified
Party notifies the Corporation of the commencement thereof:

               (a)    The Corporation will be entitled to participate therein at
its own expense; and

               (b)    The Corporation jointly with any other indemnifying party
similarly notified will be entitled to assume the defense thereof, with counsel
reasonably satisfactory to an Indemnified Party; provided, however, that the
                                                 --------  -------
Corporation shall not be entitled to assume the defense of any Proceeding if the
Indemnified Party shall have reasonably concluded that there may be a conflict
of interest between the Corporation and the Indemnified Party with respect to
such Proceeding. After notice from the Corporation to the Indemnified Party of
its election to assume the defense thereof, the Corporation will not be liable
to the Indemnified Party under this Agreement for any Expenses subsequently
incurred by the Indemnified Party in connection with the defense thereof, other
than reasonable costs of investigation or as otherwise provided below. The
Indemnified Party shall have the right to employ his or her own counsel in such
Proceeding but the fees and expenses of such counsel incurred after notice from
the Corporation of its assumption of the defense thereof shall be at the expense
of the Indemnified Party unless:

                      (i)    The employment of counsel by the Indemnified Party
               has been authorized by the Corporation;

                                      -6-

<PAGE>

                      (ii)   The Indemnified Party shall have reasonably
               concluded that counsel engaged by the Corporation may not
               adequately represent the Indemnified Party; or

                      (iii)  The Corporation shall not in fact have employed
               counsel to assume the defense in such Proceeding or shall not in
               fact have assumed such defense and be acting in connection
               therewith with reasonable diligence;

in each of which cases the fees and expenses of such counsel shall be at the
expense of the Corporation.

               (c)    The Corporation shall not settle any Proceeding in any
manner which would impose any penalty or limitation on an Indemnified Party
without the Indemnified Party's written consent; provided, however, that the
                                                 --------  -------
Indemnified Party will not unreasonably withhold his or her consent to any
proposed settlement.

         14.   Notices. All notices, requests, demands and other communications
               -------
hereunder shall be in writing and shall be deemed to have been duly given if (i)
delivered by hand and receipted for by the party to whom said notice or other
communication shall have been directed, or (ii) mailed by certified or
registered mail with postage prepaid, on the third business day after the date
on which it is so mailed:

               (a)    If to Executive or other Indemnified Party, to:

                      [Executive's address]

               (b)    If to the Corporation, to:

                      MJBC Corp.
                      [address]
                      Attention:  Corporate Secretary

or to such other address as may have been furnished to an Indemnified Party by
the Corporation or to the Corporation by an Indemnified Party, as the case may
be.

         15.   Nonexclusivity. The rights of each Indemnified Party hereunder
               --------------
shall not be deemed exclusive of any other rights to which such Indemnified
Party may now or in the future be entitled under the Delaware General
Corporation Law, the Certificate of Incorporation or the Bylaws of the
Corporation, or any agreements, vote of stockholders, resolution of the Board of
Directors or otherwise.

         16.   Certain Definitions.
               -------------------

               (a)    "Disinterested Director" shall mean a director of the
Corporation who is not or was not a party to the Proceeding in respect of which
indemnification is being sought by an Indemnified Party.

                                      -7-

<PAGE>

               (b)    "Expenses" shall include all direct and indirect costs
(including, without limitation, attorneys' fees, retainers, court costs,
transcripts, fees of experts, witness fees, travel expenses, duplicating costs,
printing and binding costs, telephone charges, postage, delivery service fees,
all other disbursements or out-of-pocket expenses and reasonable compensation
for time spent by an Indemnified Party for which he or she is otherwise not
compensated by the Corporation) actually and reasonably incurred in connection
with a Proceeding or establishing or enforcing a right to indemnification under
this Agreement, applicable law or otherwise; provided, however, that "Expenses"
                                             --------  -------
shall not include any Liabilities.

               (c)    "Final Adverse Determination" shall mean that a
determination that an Indemnified Party is not entitled to indemnification shall
have been made pursuant to Section 8 hereof and either (i) a final adjudication
in a Delaware court pursuant to Section 11(a) above shall have denied the
                                -------------
Indemnified Party's right to indemnification hereunder, or (ii) the Indemnified
Party shall have failed to file a complaint in a Delaware court pursuant to
Section 11(a) above for a period of one hundred twenty (120) days after the
-------------                       ------------------  ---
determination made pursuant to Section 8 above.
                               ---------

               (d)    "Indemnification Period" shall mean the period of time
during which Executive shall continue to serve as a director or as an officer of
the Corporation, and thereafter so long as an Indemnified Party shall be subject
to any possible Proceeding arising out of acts or omissions of Executive as a
director or as an officer of the Corporation.

               (e)    "Independent Legal Counsel" shall mean a law firm or a
member of a law firm selected by the Corporation and approved by an Indemnified
Party asserting a right to indemnity under this Agreement (which approval shall
not be unreasonably withheld) and that neither is presently nor in the past five
                                                                            ----
(5) years has been retained to represent: (i) the Corporation or any subsidiary
 -
of the Corporation, in any material matter, or (ii) any other party to the
Proceeding giving rise to a claim for indemnification hereunder. Notwithstanding
the foregoing, the term "Independent Legal Counsel" shall not include any person
who, under the applicable standards of professional conduct then prevailing,
would have a conflict of interest in representing either the Corporation or the
Indemnified Party in an action to determine the Indemnified Party's right to
indemnification under this Agreement.

               (f)    "Liabilities" shall mean liabilities of any type
whatsoever including, but not limited to, any judgments, fines, ERISA excise
taxes and penalties, penalties and amounts paid in settlement (including all
interest assessments and other charges paid or payable in connection with or in
respect of such judgments, fines, penalties or amounts paid in settlement) of
any Proceeding.

               (g)    "Proceeding" shall mean any threatened, pending or
completed action, claim, suit, arbitration, alternate dispute resolution
mechanism, investigation, administrative hearing or any other proceeding whether
civil, criminal, administrative or investigative, including any appeal
therefrom.

         17.   Binding Effect, Duration and Scope of Agreement; Third Party
               ------------------------------------------------------------
Beneficiaries.
-------------

                                      -8-

<PAGE>

               (a)    This Agreement shall be binding upon and inure to the
benefit of and be enforceable by the parties hereto and their respective
successors and assigns (including any direct or indirect successor by purchase,
merger, consolidation or otherwise to all or substantially all of the business
or assets of the Corporation), spouses, heirs and personal and legal
representatives. This Agreement shall continue in effect during the
Indemnification Period, regardless of whether Executive continues to serve as a
director or as an officer of the Corporation or any subsidiary of the
Corporation.

               (b)    During the term of the Indemnification Period, each
Indemnified Party is intended to be a third party beneficiary of this Agreement
to the extent such party is entitled to indemnification under this Agreement
(and each Indemnified Party shall be able to enforce the provisions of this
Agreement as if a party hereto).

         18.   Severability. If any provision or provisions of this Agreement
               ------------
(or any portion thereof) shall be held to be invalid, illegal or unenforceable
for any reason whatsoever:

               (a)    the validity, legality and enforceability of the remaining
provisions of this Agreement shall not in any way be affected or impaired
thereby; and

               (b)    to the fullest extent legally possible, the provisions of
this Agreement shall be construed so as to give effect to the intent of any
provision held invalid, illegal or unenforceable.

         19.   Governing Law and Interpretation of Agreement. This Agreement
               ---------------------------------------------
shall be governed by and construed and enforced in accordance with the laws of
the State of Delaware, as applied to contracts between Delaware residents
entered into and to be performed entirely within Delaware. If the laws of the
State of Delaware are hereafter amended to permit the Corporation to provide
broader indemnification rights than said laws permitted the Corporation to
provide prior to such amendment, the rights of indemnification and advancement
of expenses conferred by this Agreement shall automatically be broadened to the
fullest extent permitted by the laws of the State of Delaware, as so amended.

         20.   Consent to Jurisdiction. The Corporation and Executive each
               -----------------------
irrevocably consent to the jurisdiction of the courts of the State of Delaware
for all purposes in connection with any action or proceeding which arises out of
or relates to this Agreement and agree that any action instituted under this
Agreement shall be brought only in the state courts of the State of Delaware.

         21.   Entire Agreement. This Agreement represents the entire agreement
               ----------------
between the parties hereto with respect to the subject matter of this Agreement,
and there are no other agreements, contracts or understandings between the
parties hereto with respect to the subject matter of this Agreement.

         22.   Counterparts. This Agreement may be executed in one or more
               ------------
counterparts, each of which shall for all purposes be deemed to be an original
but all of which together shall constitute one and the same Agreement.

                                      -9-

<PAGE>

         IN WITNESS WHEREOF, this Agreement is executed and delivered as of the
date first set forth above.

                                     MJBC CORP.

                                     By: _______________________________________
                                     Title: ____________________________________

                                     ___________________________________________
                                     [Name]

                     [SIGNATURE PAGE TO INDEMNITY AGREEMENT]

                                      -10-

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