Document:

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[S1 LOGO]

                S1, INC ENTERPRISE LICENSE AND SERVICES AGREEMENT

                    PREPARED FOR: 1ST COLONIAL NATIONAL BANK
                    ----------------------------------------
                              $ 109mm TOTAL ASSETS

                                                                      Contract #

This S1, Inc. Enterprise License and Services Agreement including the
incorporated Schedules ("Agreement") is effective the 16th day of October, 2003
("Effective Date"), and is made by and between S1, Inc. (including its
subsidiaries and affiliates), a Kentucky corporation, having a place of business
at 3500 Lenox Road N.E., Suite 200, Atlanta, GA 30326 USA, ("Licensor"), and 1st
Colonial National Bank, a federally chartered financial institution with
offices at 1040 Haddon Ave., Collingswood, NJ 08108 ("Licensee") , on behalf of
itself and its affiliates ("Affiliates") listed in Schedule C ("Licensee" or
"Client"). In consideration of the mutual covenants made and for other good and
valuable consideration the receipt and sufficiency of which is hereby
acknowledged, Licensor and Licensee hereby agree to the terms hereof.

The Agreement includes the following Schedules:

<TABLE>
<S>             <C>
Schedule A:     S1 License and Services Terms
Schedule B:     Licensed Products, Professional Services, Maintenance/Support, and Fees
Schedule C:     Licensee Affiliates, Designated Locations
Schedule D:     Intentionally Omitted
Schedule E:     Intentionally Omitted
Schedule F:     Customer Center Terms and Conditions
</TABLE>

NOTICES: All legal notices under this Agreement shall be deemed sufficiently
given if delivered in person or when sent via internationally recognized air
courier, fees pre-paid by sender, with a copy via facsimile, to the addresses
below. Notices shall be deemed given at presentment, if in person, and three (3)
business days after deposited with the courier.

FOR S1:                                     FOR LICENSEE:
S1, Inc.                                    1st Colonial National Bank
3500 Lenox Road, Suite 200                  1040 Haddon Ave.,
Atlanta, Georgia 30326 USA                  Collingswood, NJ 08108
Attn: General Counsel                       Attn: Irene Clark
cc: Legal Department                        cc:

                                            BILLING ADDRESS:
                                            1st Colonial National Bank
                                            1040 Haddon Ave.,
                                            Collingswood, NJ 08108
                                            Attn:

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

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                     SCHEDULE A - LICENSE AND SERVICE TERMS

S1, INC.                                    LICENSEE

By:    /s/  Jace Day                        By:    /s/ James E. Strangfeld
   --------------------------------             -----------------------------

Name:  Jace Day                             Name:  James E. Strangfeld

Title: General Manager                      Title: Executive Vice President

Date:  November 26, 2003                    Date:  November 26, 2003

THIS LICENSE AND SERVICES AGREEMENT CONSTITUTES AN OFFER BY LICENSEE UNTIL
EXECUTED BY AN AUTHORIZED S1 REPRESENTATIVE

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                     SCHEDULE A - LICENSE AND SERVICE TERMS

GENERALLY. The Licensee has, in executing the Agreement, agreed to "License and
Service Terms" (Schedule A); obtain certain "Hosting Services (Schedule A-1) and
"Professional Services (Schedule A-2); Fees Schedule (Schedule B); Licensee
Affiliates and Designated Locations (Schedule C) Customer Center Terms and
Conditions (Schedule "F"). Together, these Schedules (together with referenced
sub-schedules and Work Orders) constitute a single, integrated Agreement.

1.       DEFINITIONS

1.1      CUSTOMER. A party to whom Licensee provides products and services.

1.2      DELIVERABLES. Work product developed for Licensee hereunder and owned
         by Licensor. Unless agreed in writing otherwise by the parties,
         Licensee's use of any Deliverable is subject to the license
         restrictions set forth in Section 2 of this Agreement.

1.3      DESIGNATED LOCATION(S). Installation site(s) set forth on SCHEDULE C
         where Licensee uses the Licensed Products. If the Designated Location
         is owned or controlled by a third party, Licensee shall ensure that the
         third party is bound by the terms of this Agreement, uses the Licensed
         Products only for the benefit of the Licensee as authorized under this
         Agreement, and assumes full responsibility for any violations of the
         terms and conditions of this Agreement committed or caused by such
         third party. Further, in such event, Licensee releases Licensor from
         liability for any failure of Licensor to perform its obligations
         hereunder that is caused by any act or failure to act of such third
         party.

1.4      LICENSED PRODUCTS. Licensed Products include Licensed Programs, Third
         Party Software, and Documentation (including documentation for
         Education Services). "Licensed Programs" include Licensor's software
         modules including Updates, but exclude Third Party Software.
         "Documentation" refers to the on-line and printed materials provided to
         Licensee by Licensor related to the Licensed Products and Third Party
         Services and may be identified as User Documentation and/or Reference
         Documentation. "Third Party Software" includes software programs and
         related documentation owned or developed by a third party that Licensor
         has the right and authority to sublicense and are sublicensed to
         Licensee as described herein solely for Licensee's internal use in
         connection with the Licensed Programs, and subject to the applicable
         additional terms and conditions, if any, as set forth in SCHEDULE D.
         The terms and conditions of SCHEDULE D shall supersede and control any
         conflicting provisions elsewhere in this Agreement.

1.5      UPDATES. Licensed Product releases that Licensor provides generally to
         its licensees that have paid the applicable support fees for the
         relevant period. Updates exclude software programs Licensor designates
         as new products. A "Major Release" has substantial architectural
         changes and/or significant new functionality. A "Minor Release" has
         minimal architectural changes and/or minimal new functionality.

1.6      SERVICES. Subject to payment of the applicable fees, Services that may
         be provided by Licensor, or by a third party designated by Licensor,
         include: 1) Professional Services, i.e. standard implementation
         services and/or non-standard professional services related to enabling
         the operation of the Licensed Programs or Deliverables, provided at
         Licensor's then current rates and as may be outlined in a written work
         order executed by the parties ("Work Order"), 2) Education Services as
         set forth herein or otherwise agreed upon by the parties and as may be
         outlined in a Work Order, 3) Support Services as described in Section 7
         below, and 4) Hosting Services, if applicable, as described in SCHEDULE
         A-1. Additional terms and conditions applicable to Licensor's
         performance of the Services described above are set forth in SCHEDULE
         A-2.

2.       GRANT OF LICENSE

2.1      SCOPE OF LICENSE. (A) If Licensee has paid a License Fee for the
         Licensed Products and subject to the terms and conditions of this
         Agreement, Licensor grants Licensee for itself and on behalf of its
         Affiliates, a non-exclusive, non-transferable (except as otherwise
         provided in this Agreement) license (in object code or executable code
         form only) to use, publicly perform and display the Licensed Products
         and listed on SCHEDULE B, solely for Licensee's internal use at the
         Designated Location(s). Licensee may change Designated Location(s),
         subject to Licensor's prior approval, which shall not be unreasonably
         withheld.

         (B) Notwithstanding anything to the contrary in this Section 2, for
         those Licensed Products listed on SCHEDULE B which are hosted in the
         Licensor's data center and for which Licensee has not paid a License
         Fee, subject to the terms and conditions of this Agreement, Licensor
         grants to Licensee for itself and on behalf of its Affiliates a
         non-transferable, non-exclusive license to access and use (and to
         permit Customers to access and use) the Licensed Products solely as
         hosted in the Licensor's data center and solely for Licensee's internal
         use (and Customers' personal use). Licensee shall have no right to
         obtain a copy of the software code for the Licensed Products in any
         form.

         (C)      Licensee may distribute relevant non-confidential portions of
         the User Documentation to Customers. Upon addition of software programs
         by written amendment to this Agreement, such new products shall be
         deemed Licensed Products. If Licensee or an Affiliate acquires another
         entity, such entity's use of Licensed Products and any Deliverable is
         subject to written amendment of this Agreement and payment of
         applicable Fees. Licensee will reproduce and include, without
         alteration, any proprietary notices that shall be linked with
         customized screens as required by Licensor, including those displayed
         in an "About" page or the equivalent thereof. Licensee acknowledges
         that the branding of the Licensed Program screens does not create in
         Licensee any right, title or interest in or to such screens. Licensor
         reserves all rights in the Licensed Products not expressly granted to
         Licensee in this Agreement.

2.2      PROHIBITED ACTIONS. Licensee will not, and will not permit any third
         party to: (i) distribute, license or otherwise transfer the Licensed
         Products; (ii) use, rent or lease the Licensed Products to provide or
         allow the provision of services for third parties who are not
         Customers; (iii) modify or create derivative works of the Licensed
         Products. Licensee will not export or re-export the Licensed Products
         outside the country of initial installation except as authorized by
         this Agreement and applicable regulations.

2.3      LICENSED PROGRAMS DATA INTERFACE(S). Licensor will provide a standard
         interface ("Interface") between the Licensed Programs and Licensee's
         related third party data processing system(s) ("Licensee System(s)") in
         accordance with this Section 2.3. All Interfaces licensed hereunder are
         identified on SCHEDULE B. Licensee is responsible, at Licensee's sole
         expense, for providing to Licensor all Licensee System technical
         specifications and documentation, subject to third party
         confidentiality requirements, necessary to enable Licensor to develop
         and support the Interfaces. Subject to Licensee's payment of the
         applicable support fees, in the event that Licensee is required by a
         Licensee System vendor to upgrade a Licensee System to the vendor's
         most recent commercially available release, Licensor shall, upon
         written notification from Licensee, determine in Licensor's sole
         discretion, whether such upgrade to the Licensee System materially
         affects the performance of the Licensed Programs and the timeline for
         implementation of any modifications to the Interface. Any other changes
         to the Interface(s) or custom interface development requested by
         Licensee are at Licensor's sole option and subject to a Work Order and
         any applicable services, license, support or other fees set forth
         therein. Licensee must provide commercially reasonable notice, but in
         no event less than thirty (30) days, to Licensor of any requested
         changes to the Interface.

2.4      CUSTOMIZATION. Licensor may, in its sole discretion, provide
         customization to the Licensed Programs, at the request of Licensee.
         Customization to the Licensed Programs will be outlined in a Work Order
         and will be subject to applicable license and support fees.

3.       PROPRIETARY RIGHTS

3.1      INTELLECTUAL PROPERTY RIGHTS. The Licensed Products include patents,
         copyrights, software rights and database rights and trade secrets of
         Licensor and its suppliers. The license granted does not give Licensee
         any right, title or interest therein other than the license expressly
         granted. Except as authorized by law, Licensee shall not, and shall not
         permit any third party to, disassemble, decompile or reverse engineer
         the Licensed Products. Licensee shall not remove, obliterate, and/or
         alter (via any means) the content or presentation of any proprietary
         notice except as authorized by this Agreement. Licensor will retain
         ownership of its proprietary information and data.

3.2      INFRINGEMENT. Licensee will promptly notify Licensor if Licensee learns
         of a violation of any Licensor intellectual property right. Licensor
         may, but will not be obligated to, prosecute such violation at its
         expense and to retain the full amount of any sums recovered as damages.
         Licensee will provide Licensor with reasonable cooperation in any such
         action at Licensor's expense.

4.       IMPLEMENTATION SERVICES. If applicable, implementation services shall
         be provided by Licensor or Licensor's designee and outlined in a Work
         Order. In that event, Licensee shall designate one or more technical
         representatives to be available during implementation of the Licensed
         Products.

5.       EDUCATION SERVICES. Licensor shall provide Licensor's standard
         Education Services for the Licensed Programs, as further described in
         SCHEDULE B, subject to payment of the applicable fees as set forth in
         SCHEDULE B. The standard Educational Services are provided via WebEx
         and will include ten hours of training. Any non-standard Education
         Services, including on-site visits by Licensor personnel, shall be
         subject to additional fees and agreed to by the parties and outlined
         in a Work Order, Schedule or amendment hereto.

6.       THIRD PARTY SERVICES. Subject to Licensee's payment of the applicable
         fees, Licensee may use the Licensed Programs in combination with the
         "Third Party Services" purchased by Licensee on a pass-through basis
         through Licensor as

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         described herein. If Licensee opts to purchase Third Party Services,
         such fees shall be set forth in SCHEDULE B and Licensor may pass
         through to Licensee any increases, additions to or modifications in the
         fees charged to Licensor for such services. Licensee shall be
         responsible for all telecommunication line charges related to
         Licensee's use of the Third Party Services. All Third Party Services
         provided by S1 hereunder shall be provided in substantial conformance
         in all material respects with the applicable Documentation and
         applicable state and federal regulation. Licensee may use the Licensed
         Products for the purpose of supporting internet-based bill payment
         services and/or bill presentment services in conjunction with
         third-party providers with whom Licensor has a current Interface.
         Internet-based Account Aggregation Services are available subject to
         the additional terms set forth in SCHEDULE E.

7.       SUPPORT SERVICES. Subject to Licensee's payment of the applicable
         Annual Support Fees, Licensor shall provide Support Services in
         accordance with this Section 7. Licensor's support obligations are
         further described in the Support Guide, as amended by Licensor from
         time to time. If Licensor amends its Support Guide in such a manner as
         to render the Support Services commercially useless, Licensee will
         provide written notice to Licensor detailing how the amendment to the
         Support Guide has rendered the Support Services commercially useless.
         In order for the Support Services to be deemed commercially useless,
         Licensor will have to have received similar notices from a majority of
         its licensees receiving Support Services that such Support Services
         have been rendered commercially useless as a result of the amendment to
         the Support Services Guide. If Licensor has also received similar
         notices from licensees concerning the commercial uselessness of its
         Support Services that resulted from an amendment of the Support Guide,
         Licensee may terminate the Support Services upon ninety (90) days
         written notice. If Licensee provides such notice of termination as set
         forth in the preceding sentence, Licensee understands such termination
         will be ineffective if Licensor has not received similar notices
         concerning the uselessness of its Support Services from a majority of
         its licensees using such Support Services, and Licensor will provide
         Licensee notice that its termination is ineffective. Licensor shall use
         reasonable diligence to correct verifiable and reproducible failures of
         the Licensed Programs to substantially conform in all material respects
         to the applicable documentation ("Errors"). Licensor has no obligation
         for Errors resulting from Licensee's misuse, damage, or combination of
         the Licensed Programs with any hardware or software not supplied or
         expressly identified as compatible by Licensor. Licensor's Support
         Services with regard to any Third Party Software are further described
         in the applicable Documentation. Licensee shall also be eligible to
         receive Updates as they are released by Licensor generally to its other
         licensees. Licensee must maintain a "Current Version" of the Licensed
         Programs and be current in its payments of applicable support fees to
         be eligible for Support Services. A Current Version is defined as the
         most current generally available release of the Licensed Program and
         the immediately preceding release. If the current release is a Major
         Release, Licensor will provide Support Services for the immediately
         preceding release for twelve (12) months from the date the current
         release is generally available. If the current release is a Minor
         Release, Licensor will provide Support Services for the immediately
         preceding release for (six) 6 months from the date the current release
         is generally available. Subject to the payment of applicable support
         fees, for the S1 IBS, Cash Management System and S1 Voice Banking
         System, Major and Minor Releases will not require Licensee to pay
         additional license fees; however, such Major and Minor Releases may
         require Licensee to pay additional implementation fees.

8.       SOURCE CODE ESCROW. Licensor has entered into a software source code
         escrow agreement whereby Licensor is obligated to provide the escrow
         agent with a copy of the current version of the source code for the
         Licensed Programs (the "Source Code"). Upon the occurrence of certain
         events as described in such escrow agreement, Licensee may request the
         escrow agent to release to Licensee a copy of the Source Code. Licensee
         shall have upon such delivery without the necessity of further action a
         paid-up, non-exclusive, non-transferable license to use the Source Code
         solely for the purpose of maintaining the Licensed Programs'
         functionality as of the time Licensee receives such Source Code.
         Licensee's license to the Source Code shall be governed by the terms of
         this Agreement. The Source Code is Confidential Information as defined
         in Section 15 in this Agreement.

9.       PAYMENTS. Invoices are due and payable upon receipt. License fees and
         other related fees are outlined in SCHEDULE B and are non-refundable.
         Licensee will pay all Service fees, and related travel and other
         reasonable out-of-pocket expenses incurred by Licensor; provided,
         however, that upon Licensee's written request, Licensor shall
         substantiate all such expenses by providing receipts for such expenses.
         Travel and other reasonable out-of-pocket expenses is not intended to
         include travel and related expenses to Licensor's site. Fees for
         products and services not listed in SCHEDULE B are at S1's standard
         rates or as otherwise set forth in an applicable Schedule or Work
         Order. Fees and expenses are exclusive of Federal, state or local,
         import, usage, value-added, withholding or other governmental taxes,
         duties, fees, excises or tariffs ("taxes"). Licensee is responsible for
         and will reimburse Licensor for all such taxes. Amounts not paid within
         30 days of receipt are subject to an additional fee of 1.5% per month
         or the maximum allowed under applicable law. All invoices are
         designated and payment is due in US Dollars.

10.      RECORD KEEPING AND AUDIT RIGHTS. During the term of the Agreement and
         for three years after any termination, Licensee's business records
         relating strictly to Licensee's use of the Licensed Products which will
         be used to calculate fees due Licensor may be examined on reasonable
         notice during normal business hours by Licensor. Licensee will
         immediately reimburse Licensor for any delinquent fees and late fees.
         If Licensee's payments are less than 95% of the fees due as determined
         by the audit, the cost of the audit shall be borne by Licensee. Such
         examinations shall not be conducted more than once in any calendar
         year.

11.      INTELLECTUAL PROPERTY CLAIMS

11.1     Licensor will defend Licensee against a claim that the Licensed
         Products infringe a patent or copyright enforceable in the United
         States and owned by an unaffiliated third party, and pay any judgment
         or settlement relating to such claim. Licensor shall have no obligation
         to Licensee to the extent such claim is caused by Licensee's (i)
         modification of the Licensed Products, (ii) failure to use the Current
         Version or other corrections or enhancements made available to
         Licensee, (iii) use of the Licensed Products in combination with any
         product or information not supplied by Licensor if such infringement
         would have been avoided by using the Licensed Products alone or (iv)
         requirements for modification or customization of the Licensed Products
         as implemented by Licensor.

11.2     If an injunction is issued against the use of the Licensed Product by
         Licensee due to a covered infringement, or if in Licensor's judgment
         any Licensed Product is likely to become the subject of a successful
         claim of infringement, Licensor may at its option and expense: (i)
         procure for Licensee the right to use the Licensed Product as provided
         in this Agreement, (ii) replace or modify the Licensed Product so it
         becomes non-infringing, or if options (i) and (ii) are not available
         despite Licensor's commercially reasonable efforts, (iii) terminate the
         licenses granted hereunder, accept the return of all copies of the
         Licensed Product in Licensee's possession and refund to Licensee an
         amount equal to the depreciated License Fee paid by Licensee calculated
         over a three year life. The remedies under this Section 11 are
         Licensee's sole and exclusive remedy in the event of any infringement
         of third party rights by the Licensed Product or other materials or
         services furnished by Licensor or the use thereof by Licensee or
         Customers.

11.3     The foregoing obligations are subject to Licensee (i) giving Licensor
         prompt written notice of any claim for which defense is sought; (ii)
         giving Licensor sole control and conduct of the defense of the claim;
         and (iii) fully cooperating in the defense or settlement of any such
         claim.

12.      TERMINATION

12.1     TERMINATION FOR CAUSE. Upon written notice, either party may terminate
         this Agreement or a Schedule if the other party materially breaches
         this Agreement or the Schedule and has not cured that breach within 30
         days after receipt of notice thereof. In the event that the Licensed
         Products are completely non-operational for a period of seven (7)
         consecutive days and such malfunction is solely due to Licensor's
         fault, Licensee may terminate this Agreement upon five (5) business
         day's notice. In the event of termination pursuant to this section, all
         payments for Services rendered shall become immediately due and
         payable.

12.2     GENERAL OBLIGATIONS. On Agreement termination, Licensee shall
         discontinue use of the Licensed Products and return all Licensed
         Products and any and all other Confidential Information to Licensor,
         or, at Licensor's option, destroy such materials, including all copies
         or partial copies thereof.

12.3     TERMINATION OF SUPPORT. Either party may terminate support services
         after the initial support term listed in SCHEDULE B by providing
         written notice ninety (90) days prior to an anniversary date of the
         support term.

13.      WARRANTIES AND DISCLAIMER

13.1     Licensor warrants the Licensed Products to Licensee for period of
         ninety (90) days from: (i) the date of installation as determined by
         Licensor and as further explained in the Statement of Work or Project
         Milestones set forth in applicable Work Orders for Licensed Products
         that have a related Work Order; (ii) delivery when there is no
         applicable Work Order related to the Licensed Products; and (iii) the
         date the revised production build is made available to Licensee for
         Customer Center, the Licensed Products will perform in substantial
         conformance in all material respects with the applicable Documentation.
         Licensee's remedies in the event of a warranty claim, are that Licensor
         will: 1) use reasonable commercial efforts to repair or replace the
         affected portion of the Licensed Products, 2) provide a work around
         solution that is substantially similar in all material functional
         respects to the Licensed Products or 3) provide replacement Licensed
         Products.

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13.2     Licensee represents and warrants that it has the corporate power and
         authority to bind each Affiliate to the terms and conditions of this
         Agreement. Licensee shall be jointly and severally liable for the
         liabilities of any Affiliate arising under or related to this
         Agreement.

13.3     WARRANTY DISCLAIMER. EXCEPT FOR THE EXPRESS WARRANTIES IN THIS SECTION
         13, LICENSOR EXPRESSLY DISCLAIMS, AND LICENSEE WAIVES, ALL OTHER
         WARRANTIES, EXPRESS OR IMPLIED, INCLUDING ANY IMPLIED WARRANTY OF
         MERCHANTABILITY OR FITNESS. LICENSOR DOES NOT WARRANT THAT THE LICENSED
         PRODUCTS WILL MEET LICENSEE OR CUSTOMER REQUIREMENTS, THAT USE THEREOF
         WILL BE UNINTERRUPTED OR ERROR-FREE, OR THAT ALL PROGRAM ERRORS WILL BE
         CORRECTED.

14.      LIMITATION OF LIABILITY

14.1     LIMITATIONS AND EXCLUSIONS. NEITHER LICENSOR NOR ITS THIRD PARTY
         SUPPLIERS WILL BE LIABLE TO LICENSEE OR ANY OTHER PARTY FOR ANY
         INCIDENTAL, INDIRECT, CONSEQUENTIAL, SPECIAL, PUNITIVE, OR EXEMPLARY
         DAMAGES OF ANY KIND (INCLUDING LOST REVENUES OR PROFITS, LOSS OF
         BUSINESS OR LOSS OF DATA OR ITS USE), WHETHER IN CONTRACT, TORT OR
         OTHERWISE, AND REGARDLESS OF WHETHER SUCH PARTY WAS ADVISED OF THE
         POSSIBILITY OF SUCH DAMAGES. In addition, neither Licensor nor its
         third party suppliers will be liable for (i) any damages or expenses
         incurred by Licensee to the extent caused by Licensee's negligence or
         willful act or omission, or (ii) processing or other errors or delays
         due to inaccurate or incomplete information provided to Licensor or
         Licensor's suppliers.

14.2     MAXIMUM LIABILITY. EXCEPT FOR DIRECT DAMAGES ARISING OUT CLAIMS OF
         LICENSOR'S GROSS NEGLIGENCE OR WILLFUL MISCONDUCT, BREACH OF
         CONFIDENTIALITY, PERSONAL INJURY OR DEATH, OR DAMAGE TO REAL OR
         TANGIBLE PERSONAL PROPERTY, LICENSOR'S TOTAL LIABILITY, WHETHER IN
         CONTRACT, TORT OR OTHERWISE, WILL NOT EXCEED THE TOTAL FEES ACTUALLY
         PAID TO LICENSOR UNDER THIS AGREEMENT WITH RESPECT TO THE COMPONENT OR
         SERVICE GIVING RISE TO THE CLAIM DURING THE TWELVE (12) MONTH PERIOD
         PRECEDING THE DATE ON WHICH THE CLAIM AROSE.

15.      CONFIDENTIALITY

15.1     Each party may gain access to confidential information belonging to the
         other party, its Affiliates and Customers, including but not limited
         to, (i) the Licensed Products, and (ii) business, financial and
         technological information (collectively, "Confidential Information"),
         which Confidential Information constitutes and shall constitute
         valuable assets and trade secrets. When a party ("Receiving Party")
         receives Confidential Information from the other party ("Owning Party")
         the Receiving Party shall, both during and after the term of this
         Agreement, (i) not disclose Confidential Information received except to
         the Receiving Party's employees and Affiliates on a need-to-know basis,
         and as authorized under this Agreement, and (ii) not make use of any
         Confidential Information received for its own purposes or for the
         benefit of any third party except as authorized by this Agreement. The
         parties' duty regarding Confidential Information shall not apply when
         disclosure is made pursuant to any law or regulation, or the order or
         request of a court or agency, provided in the event of a "request" for
         such Confidential Information by a court or agency, the Disclosing
         Party has obtained the written consent of the court or agency to
         maintain the confidentiality of such Confidential Information.

15.2     IDENTIFICATION AND NONDISCLOSURE. Confidential Information will be
         properly identified on reproductions to third parties, and shall be
         safeguarded and used only in accordance with this Agreement. Each party
         covenants not to divulge Confidential Information without obtaining a
         nondisclosure agreement from any recipient, wherein such party
         undertakes to handle Confidential Information pursuant to terms and
         conditions of the scope specified in Section 15.1 of this Agreement.

15.3     EXCEPTIONS. These Section 15 obligations will not apply to information
         that (i) is in the public domain, (ii) comes into the public domain
         through no fault of the Receiving Party; (iii) is already known without
         restriction by the Receiving Party at the time of receipt; (iv) is
         available to the Receiving Party from a third party not under an
         obligation of confidence with respect to such information; (v) is known
         or developed independently of the disclosure by the Owning Party; or
         (vi) is required to be disclosed by a government agency, by court
         order, or by law.

15.4     RETURN OF PROPRIETARY INFORMATION; SURVIVAL UPON TERMINATION. On
         Agreement termination, or on Owning Party's demand, Receiving Party
         will promptly return all Owning Party Confidential Information, or
         certify to Owning Party that all such Confidential Information has been
         destroyed. The obligations of confidentiality set forth in this Section
         15 shall survive Agreement termination.

15.5     GRAMM-LEACH BLILEY ACT. The applicable provisions of the Gramm-Leach
         Bliley Act (15 USC Sections 6801-6810) will apply to the use and
         disclosure of information hereunder.The applicable provisions of the
         Gramm-Leach Bliley Act and its implementing regulations will apply to
         the access, use and safeguard of Nonpublic Personal Information and
         other Confidential Information."

16.      GOVERNMENTAL EXAMINATIONS

16.1     COOPERATION. The parties are subject to examination and audit by
         government and quasi-government agencies. Licensee acknowledges that
         certain federal and state agencies may require access to facilities of
         Licensee to audit the performance of the services by Licensee through
         use of the Licensed Products pursuant to this Agreement or the nature
         of certain transactions conducted by Licensee, and Licensee will
         cooperate with respect to all such governmental audits. Unless
         prohibited by valid order, each party will promptly notify the other of
         any formal request by a governmental agency to examine records
         pertaining to the other party or its customers. Each party authorizes
         the other to fully cooperate with any such examination, and such
         cooperation will not be a breach of this Agreement.

16.2     BANK SERVICE CORPORATION ACT. Licensor is subject to periodic
         examination by the United States Federal Banking Regulators pursuant to
         Section 1867(c)(1) of the . Bank Service Company Act

17.      NON-SOLICITATION. During the existence of this Agreement, and for six
         (6) months thereafter, Licensee shall refrain from directly soliciting
         for employment any of the employees or contractors of Licensor.

18.      DISPUTE RESOLUTION. Except as provided below, no civil action with
         respect to any dispute, controversy or claim arising out of or relating
         to this Agreement may be commenced until the parties have attempted and
         failed to resolve the dispute in accordance with the following
         procedures. A party raising a dispute will provide the other party
         written notification describing the factual basis for the dispute. The
         parties shall attempt in good faith to resolve the dispute by
         negotiations between senior executives who have authority to settle the
         matter. All negotiations are confidential and shall be treated as
         compromise and settlement negotiations under the United States Federal
         Rules of Evidence. If the parties have failed to resolve the dispute
         within 30 days after the date of notification, the parties shall
         jointly select a qualified and impartial mediator and attempt in good
         faith to resolve the matter through mediation within 60 days after the
         date of notification. Nothing in the foregoing shall limit either party
         from applying to a court of competent jurisdiction for interim measures
         including injunctions, attachments and conservation orders in
         appropriate circumstances, which measures the parties agree may be
         immediately enforced by court order, and the parties agree that seeking
         and obtaining such measures shall not waive the right to negotiation
         and MEDIATION.

19.      MISCELLANEOUS. No amendment or modification of this Agreement shall be
         valid unless in writing and duly executed by both parties. Neither this
         Agreement nor any rights hereunder are assignable by Licensee, whether
         by merger, acquisition, sale of assets, operation of law, or otherwise,
         without the prior written consent of Licensor, which consent shall not
         be unreasonably withheld. This Agreement shall be binding upon and
         shall inure to the benefit of the parties hereto and their respective
         successors and permitted assigns. This Agreement will be governed by
         the laws of Delaware, exclusive of any choice of law rules. Any action
         hereunder shall be brought exclusively in the Georgia state or Federal
         Courts of the Northern District of Georgia, Atlanta Division. The UN
         Convention on the International Sale of Goods shall not apply. The
         parties acknowledge that each has participated equally in the
         negotiation and drafting of this Agreement. The parties are independent
         contractors and nothing herein shall be deemed to create a partnership
         or joint venture. This Agreement, including all Schedules, is the
         entire agreement between the parties, supersedes all prior
         representations and communications and may only be modified by a signed
         written instrument. To the extent that provision set forth in any other
         Schedule conflicts with a provision of this SCHEDULE A, the conflicting
         provision of the other Schedule shall supersede and control. Neither
         party shall be liable to the other for any loss or damage due to delay
         or failure to perform due to any event outside of the respective
         party's reasonable control. This Agreement is entered into for the sole
         benefit of the parties hereto, and no other person or entity shall have
         any right of action hereon, right to claim any right or benefit from
         the terms contained herein or be deemed a third party beneficiary
         hereunder. No delay or failure in exercising any right or privilege
         will be construed as a waiver of any default. No waiver shall be valid
         against a party unless written and signed by the party against whom
         enforcement is sought. This Agreement is expressly declared to be
         severable. Those provisions, which by their terms and sense are
         intended to survive the termination of this Agreement, shall so
         survive.

                                  Page 5 of 16

<PAGE>

                                 SCHEDULE A - 1

                                HOSTING SERVICES

1.       GENERAL

1.1      HOSTING SERVICES. Subject to Licensee's payment of the applicable fees
set forth in SCHEDULE B ("DATA PROCESSING FEES"), Licensor will provide
Licensee, on a non-exclusive basis, the Hosting Services through which Licensee
and Licensee's Customers shall use the Licensed Programs as hosted in the
Licensor Data Center, subject to the terms of this SCHEDULE A-1.

1.2      SERVICE DESCRIPTION. Hosting Services include the following:

         (a)      Operations. Licensor will operate and provide on a day-to-day
basis and in accordance with standard industry practices, hosting of the
Licensed Programs, and management of the hardware and equipment included in the
Data Center for Licensee's non-exclusive use during the term of this Schedule.
Licensor will provide facilities management services of the Data Center
including power, HVAC, asset control, physical security, and emergency power, as
well as "Batch Processing," "Data Backup," "Data Network Management," "Capacity
Management," "Security Monitoring" and disaster recovery services as hereinafter
described

         (b)      Batch Processing. Production batch processing jobs of
Licensee's properly formatted batch files, including, e.g. data base extract,
file send, file receive, and data base update jobs, in accordance with mutually
agreed batch schedule transfers. Batch processing is limited to 1 job cycle per
day governed by federal bank holidays. Real-Time processing is available if
Licensee has licensed and paid for the appropriate Real-Time Interface from
Licensor.

         (c)      Data Backup. Maintaining, updating and executing commercially
reasonable data file back-up procedures.

         (d)      Data Network Management, Planning and Monitoring. Data network
(from point of Licensee's telecommunication connection at the S1 Data Center)
management, planning, and monitoring, including (i) maintaining network control,
monitoring, and reporting; and (ii) managing and coordinating third party
vendors that provide network services.

         (e)      Capacity Management. Capacity management services, including
server resources, disk and data network.

         (f)      Performance Management. Daily monitoring and monthly reporting
to Licensee of performance statistics for availability, response time, and batch
cycle duration.

         (g)      Upgrades. Licensor will apply commercially available upgrades
and patches to the Data Center equipment subject to prior notification of
Licensee and accordance with Licensor's Change Management Policy, as such policy
is amended from time to time.

         (h)      Security Monitoring. Monitoring and reporting to Licensee of
attempted unauthorized access. In the event that Licensor reasonably believes
that any Licensee Customer data has been disclosed to an unauthorized person as
a result of a penetration or other compromise of Data Center security, Licensor
will use commercially reasonable efforts to immediately notify Licensee, in
accordance with Licensor's then-current Information Security Policy, of the
existence and extent (if known) of such disclosure; however Licensor may delay
such notification to the extent notification may impede any related criminal
investigation. In addition, Licensor will generally inform Licensee of the
efforts made to address such disclosure, provided that Licensor shall not be
required to inform Licensee of any such efforts to the extent that doing so
would, in Licensor's reasonable judgment, compromise the security of the Data
Center. Licensee has sole responsibility for reporting any notifications
received hereunder to Licensee's Customers in accordance with applicable law.

1.3      COMMUNICATION LINK-UPS AND FRAME RELAY SERVICES. Licensor will obtain
the communications equipment and lines necessary to use the Hosting Services by
Licensee and its Customers. Licensee is responsible for all actual costs
associated with the purchase, installation and maintenance of such communication
equipment and lines used in conjunction with the Hosting Services.

1.4      SECURITY ARCHITECTURE. Licensor is responsible for security of the Data
Center including, but not limited to, servers, routers, firewalls, switches,
circuits, and related software, and has deployed various types of defense
against unauthorized access to the Data Center. Licensee-owned equipment that is
connected to any Licensor-maintained device (e.g., border router, firewall) must
comply with current Licensor requirements and standards, the current version of
which are available upon request. Licensor will provide reasonable notice to
Licensee of any change to the requirements or standards. Any anticipated changes
to Licensee's environment that may affect the Hosting Services must be submitted
in writing to Licensor for Licensor's review and approval at least one week
prior to Licensee's scheduled implementation. If Licensee modifies its equipment
or software configurations that result in any interruption of the Hosting
Services, all diagnostic and repair time conducted by Licensor to restore
connectivity will be billed to Licensee at Licensor's then-current rates. Upon
Licensee's written request, Licensor will provide Licensee with a copy of the
most recent independent security audit report (SAS 70) of Licensor's operations,
provided that such SAS 70 report shall be treated as Licensor's Proprietary
Information.

1.5      LIMITATION ON USE OF HOSTING SERVICES. Licensee acknowledges and agrees
that Licensee may use the Hosting Services only for its internal operations and
for providing services to its Customers. Licensee shall not offer or utilize the
Hosting Services for any third party, including, but not limited to, any
downstream correspondents, except as permitted by this Agreement. Licensee shall
not have the right to use the Hosting Services to provide services to third
parties. This Section 1.5 of this Agreement is not intended to prohibit
potential customers from only browsing the website, provided however; that
Licensee agrees that potential customers shall not have any right to make any
use whatsoever of the Hosting Services either directly or indirectly.

2.       OWNERSHIP OF DATA AND OPERATING SYSTEM. As between Licensor and
Licensee, Licensee owns all data transmitted to Licensor under this Agreement by
Licensee or its Customers. Licensor may keep records of such data to comply with
applicable laws and regulations and for its business records, subject to its
duties regarding Confidential Information. All production systems, programs,
operating instructions, and other documentation prepared and/or provided by
Licensor to Licensee shall be and remain Licensor's property.

3.       LICENSEE REQUIREMENTS. Prior to implementation of the Licensed Products
in the Data Center, Licensee must provide at its sole cost and have ready (fully
assembled, functional and available) the hardware, software and equipment as
described in the applicable Documentation, and Licensee shall ensure that at
least two Licensee employees have received the applicable training with respect
to the Licensed Products, if any, set forth in the Documentation. Failure to
comply with the preceding pre-installation requirements may cause Licensee to
lose Licensee's scheduled installation date such that rescheduling of Licensee's
installation shall be at the sole discretion of Licensor: Throughout the term of
this Agreement Licensee shall ensure that at all times two Licensee employees
have completed the training as set forth in the applicable Documentation with
respect to the Licensed Products, if any. Any Services provided by Licensor to
Licensee as a result of Licensee's failure to meet these Licensee Requirements
are chargeable by Licensor at Licensor's standard applicable time and materials
rates.

4.       DISASTER RECOVERY PLAN. Licensor will maintain off-site disaster
recovery capabilities designed to enable Licensor's Data Center to recover
substantial operational functionality from a designated disaster within
seventy-two (72) hours, including maintaining either an alternate mirrored site
or daily backups, as appropriate. Licensor will at all times maintain a disaster
recovery plan with respect to post-disaster recovery of (i) the Data Center and
(ii) other Licensor operations which Licensor considers critical to Licensee's
continued use of the Licensed Programs. Licensor shall test its disaster
recovery capabilities no less frequently than annually and, upon Licensee's
request, will provide Licensee with a summary of such disaster recovery plan
and/or the results of the most recent testing pursuant to such plan. If the
Licensee's banking regulator requests a copy of Licensor's disaster recovery
plan, Licensor will provide directly to Licensee's banking regulator a copy of
such plan pursuant to confidential treatment by the regulator. Additional
Disaster Recovery Services are available from Licensor pursuant to a Work Order
and Licensee's payment of the applicable fees set forth therein.

5.       TERM. This Hosting Services Schedule shall have an initial term of
three (3) years from the Effective Date of the Agreement ("Initial Term") and
shall automatically renew thereafter for successive one-year terms ("Renewal
Term") unless either party provides the other written notification of its
intention not to renew this Schedule at least ninety (90) days prior to any
renewal date. Licensee may terminate this Schedule at any time without cause on
ninety (90) days' prior written notice to Licensor, provided that if Licensee
elects to so terminate this Schedule during the Initial Term, Licensee shall pay
Licensor an early termination fee equal to one-half of the total remaining
Hosting Fees payable to Licensor throughout the entire Initial Term, calculated
by averaging the fees paid to Licensor hereunder over the three complete
calendar months preceding the effective date of such termination. After the
Initial Term, and subject to Section 1.3 of Schedule A of this Agreement and
Licensor's written approval, Licensee may change the Designated Location in
Schedule C of this Agreement.

                                  Page 6 of 16

<PAGE>

                                  SCHEDULE A-2
                   PROFESSIONAL SERVICES TERMS AND CONDITIONS

1.       SERVICES

Subject to the terms and conditions of this Agreement, Licensor will provide to
Licensee the services described in any Work Order executed by the parties and
attached hereto (collectively, the "Services"). During the Term of this SCHEDULE
A-2, Licensee may obtain additional services from Licensor by entering into
subsequent Work Orders with Licensor, each of which shall be attached hereto and
incorporated herein for all purposes. Every Work Order shall be in writing,
signed by both parties, and shall describe, at a minimum, the scope of the
services to be provided by Licensor, any Deliverables (including the responsible
party and time constraints), project assumptions, specific Licensee obligations,
and the amounts payable by Licensee. To the extent that any applicable project
assumptions are not met or turn out to be inaccurate, the cost and delivery
schedule of the services will be impacted, and the parties shall negotiate in
good faith to mutually develop a work-around plan, revised schedule and revised
fees. Services fees are subject to an increase in the event of: (a) the
provision of Work Product and/or performance of services beyond those described
in any Work Order or Statement of Work; or (b) delays or additional costs
incurred by Licensor as a result of Licensee's failure to perform Licensee's
obligations (collectively, the "Out of Scope Services"). If the Service fees are
going to materially increase as a result of an event described in the preceding
sentence, Licensor will advise Licensee of the increase in fees in writing (the
parties agree that an email will suffice as a writing in this instance). All Out
of Scope Services shall be chargeable to and paid by Licensee on a time and
materials basis at Licensor's then-current rates for such services. To allow
Licensor to be able to manage Licensor's participation in the project most
effectively, Licensor reserves the right to determine the personnel (including
subcontractors) to perform the Services although Licensor will attempt to honor
Licensee's requests for specific individuals.

2.       LICENSEE AND LICENSOR RESPONSIBILITIES

2.1 Licensor and Licensee will comply at all times with all applicable laws and
regulations with respect to the Services and Deliverables and with respect to
Licensee's use thereof.

2.2 Licensee will not use the Services in connection with any (A) infringement
or misappropriation of any intellectual property rights; or (B) any other
illegal conduct.

2.3 Licensee agrees to use commercially reasonable efforts to manage and support
the completion of the Services, and to provide such other materials, information
or services as may be necessary to accomplish the same including, without
limitation, any materials, information or services specifically set forth in the
applicable Work Order. Licensee understands that Licensor's performance is
dependent on Licensee's timely and effective satisfaction of Licensee
Responsibilities hereunder and Licensee's timely decisions and approvals.
Licensor shall be entitled to rely on Licensee's decisions and approvals in
connection with the Services. Further, Licensee understands that Licensor is
relying upon the information that Licensee provides and Licensee represents that
such information is true, accurate and complete. Because of the importance of
such information to this project, Licensee agrees to release Licensor and its
personnel from any liability and costs relating to the Services attributable to
any false, inaccurate or incomplete information provided by Licensee.

2.4 Licensee will provide Licensor written instructions for any shipments of
hardware and/or equipment required in the course of performing the Services.
Licensee will pay all shipping, freight and insurance charges incurred
hereunder. Title, risk of loss and/or damage to any software, hardware or
equipment, and responsibility for filing claims with the carrier, pass to
Licensee on delivery to such carrier. Licensor will pack all shipments in
accordance with normal commercial standards.

3.       CHANGE ORDERS

Additions or modifications to any Work Order may be accomplished through the use
of a "Change Order". The party requesting the change shall submit a written
request to the other party specifying the desired additions or modifications to
the Work Order (the "Change Notice"), and the party receiving such Change Notice
shall submit a proposal to the party submitting such Change Notice. Licensor
will include, either on the Change Notice if it is the party submitting the
Change Notice, or on the proposal, if it is the party responding to the Change
Notice, a statement of any estimated additional hours and associated fees and
any changes to the Services as a result of such requested change. Upon both
parties' signatures to the proposal it shall become the Change Order. All
additional services performed under a Change Order shall be performed on a time
and materials basis with billing reflecting actual hours worked.

4.       OWNERSHIP

Except as may be expressly agreed otherwise in writing by Licensor and Licensee,
including Section 5 of Schedule F of this Agreement, or set forth in any Work
Order, Licensor shall own all rights with respect to any work product generated
as a result of the Services (the "Work Product"), and Licensee hereby assigns to
Licensor, its successors and assigns, all right, title and interest in and to
the Work Product, including without limitation, all rights in and to any
inventions, ideas, designs, techniques or improvements embodied in the Work
Product or developed in the course of Licensor's performance of the Services,
any trade secrets, copyrights and "moral rights," and any renewal or extensions
of such rights.

5.       WARRANTY

Services are deemed accepted on delivery unless stated otherwise in a Work
Order. Notwithstanding the foregoing, Licensor warrants that the Services will
be performed in a professional and workmanlike manner in accordance with
applicable professional standards. However, Licensor does not warrant, nor will
Licensor be responsible for, the performance of any third party products.
Licensee's sole and exclusive rights and remedies with respect to any third
party product, including rights and remedies in the event a third party product
gives rise to an infringement claim, will be against the third party vendor and
not against Licensor. Licensor shall assign to Licensee any assignable
warranties Licensor may receive from any such third party vendor.

THE PRECEDING IS LICENSOR'S ONLY WARRANTY CONCERNING THE SERVICES AND ANY WORK
PRODUCT OR DELIVERABLE, AND IS MADE EXPRESSLY IN LIEU OF ALL OTHER WARRANTIES
AND REPRESENTATIONS, EXPRESS OR IMPLIED, INCLUDING ANY IMPLIED WARRANTIES OF
FITNESS FOR A PARTICULAR PURPOSE, MERCHANTABILITY OR OTHERWISE.

6.       INDEMNIFICATION

6.1      Licensor will defend Licensee against any damage or expense relating to
bodily injury or death of any person or damage to real and/or tangible personal
property incurred during the course of performing the Services and to the extent
caused by the negligent or willful acts or omissions of Licensor personnel or
agents in performing the Services.

6.2      Licensor will indemnify Licensee against any damage or expense finally
awarded against Licensee relating to any claim that the Work Product infringes a
presently existing United States patent, copyright or trade secret. This
provision will not apply to the extent the alleged infringement is caused by or
based on (i) Licensee's misuse of the Work Product; (ii) Licensee's failure to
use corrections or enhancements made available by Licensor; (iii) Licensee's use
of the Work Product in combination with any product or information not owned,
developed or provided by Licensor; (iv) Licensee's use of the Work Product for
other than Licensee's internal purposes; or (v) information, directions or
materials provided by Licensee or any third party.

6.3      Licensee will indemnify Licensor against any damage or expense that may
result from any third party claim relating to the Services or any use by
Licensee of any Work Product, and Licensee will reimburse Licensor for all
expenses (including counsel fees) as incurred by Licensor in connection with any
such claim, except to the extent such claim (i) is finally determined to have
resulted from Licensor's gross negligence or willful misconduct or (ii) is
covered by any of the preceding indemnities.

6.4      To receive any of the foregoing indemnities, the party seeking
indemnification must notify the other promptly that a suit has been brought,
must provide reasonable cooperation (at the indemnifying party's expense) and
full authority to defend or settle the claim or suit. Neither party will be
required to indemnify the other under any settlement made without its consent.
This Section 6 shall survive termination of this Agreement.

7.       DEFAULT

Either party may, upon giving thirty (30) days written notice identifying
specifically the basis for such notice, terminate any Work Order individually
for breach of a material term or condition of the Work Order, provided the
breaching party shall not have cured such breach within the thirty (30) day
period. In the event of such termination, Licensor shall deliver to Licensee any
applicable Work Product produced prior to the effective date of termination,
subject to Licensee's payment to Licensor for all Services rendered and expenses
incurred by Licensor prior to the effective date of termination

8.       TERM

This SCHEDULE A-2 shall have a term of three years from the Effective Date of
this Agreement, and shall renew automatically for additional one-year terms
unless either party provides written notice to the other party of its intention
not to renew this SCHEDULE A-2 no less than ninety (90) days prior to the
expiration of any term. The provisions of any Work Order executed by the parties
and attached hereto relating to a specific term for the Services described in
such Work Order shall supersede this Section 8 only with respect to such Work
Order.

                                  Page 7 of 16

<PAGE>

                                 SCHEDULE A-2.1

SCOPE OF SERVICES: The "Services" are the implementation of S1 IBS Retail and/or
S1 IBS Cash Management and any applicable optional modules, as licensed and paid
for by Licensee (the "Licensed Programs"), into the S1 Data Center as described
herein. This Work Order describes concurrent implementation of one production
instance of the Licensed Program(s); additional implementation projects (for
affiliated financial institutions or a separate implementation of one or some of
the Licensed Program(s)) are subject to additional fees.

PRE-IMPLEMENTATION LICENSEE REQUIREMENTS: Licensee shall designate one or more
technical representatives to be available throughout the installation project.
Licensee shall provide at its own cost and have ready (fully assembled,
functional and available) prior to the day implementation begins the hardware,
software and equipment set forth in the Implementation Readiness Handbook and as
set forth herein. Licensee is responsible for providing all necessary data file
extracts from Licensee's third party processing system vendors in conformance
with S1 Licensed Program file formats. S1 will obtain and maintain the
communications equipment and lines necessary to connect from Licensee's point of
demarcation to the S1 Data Center, however Licensee is responsible for all costs
associated with the purchase, installation and maintenance of such communication
equipment and lines. Licensee should have both a production environment and a
test environment (including test accounts and data) suitable for testing all
aspects of the Licensed Programs ready to be used during the implementation
project. If Licensee opts to forego creating a suitable test environment and
requires Testing to be performed in Licensee's production environment, Licensee
expressly assumes all responsibility and liability for any resulting errors,
damages or claims. Licensee shall provide a minimum of 4 test accounts,
including passwords, to Licensor for Licensor's use in completing the Services
and to be eligible to receive Support Services following completion of the
Services. Failure to comply with any of these pre-implementation requirements
may cause Licensee to lose Licensee's scheduled implementation slot such that
rescheduling of Licensee's implementation shall be at the sole discretion of
Licensor, and Licensee shall be responsible for Licensor's costs related to
re-starting and-or rescheduling the Services.

CHANGE ORDERS: Additions or modifications to this Work Order may be accomplished
through the use of a "Change Order". The party requesting the change shall
submit a written request to the other party specifying the desired additions or
modifications to the Work Order (the "Change Notice"), and the party receiving
such Change Notice shall submit a proposal to the party submitting such Change
Notice. S1 will include, either on the Change Notice if it is the party
submitting the Change Notice, or on the proposal, if it is the party responding
to the Change Notice, a statement of any estimated additional hours and
associated fees and any changes to the Project Milestones or Deliverables as a
result of such requested change. Upon both parties' signatures to the proposal
it shall become the Change Order. All additional services performed under a
Change Order shall be performed on a time and materials basis with billing
reflecting actual hours worked and any associated travel and expenses.

LIMITATIONS: Unless such modules have been included as Licensed Programs
licensed by Licensee, this implementation statement of work does not apply to
the implementation of optional modules for IBS, including but not limited to:

         -        Bill Payment services and interfaces

         -        Check Imaging modules or interfaces

         -        Check Ordering services or interfaces

         -        Text Statement modules or interfaces

         -        Credit Card modules or interfaces

         -        Real-time Host access module

         -        Migration/transfer of data from an existing system, either S1
                  or alternate provider

         -        Any customization not expressly described and agreed to herein

         -        Other S1 products and services not included with the license
                  for IBS Retail or IBS Cash Management.

The availability of any standard Licensed Program feature is expressly subject
to the availability of support for such feature within Licensee's applicable
third party processing systems (e.g. host processing, online bill payment, check
imaging, etc.) as well as a standard interface enabling such feature between the
Licensed Program and the applicable third party processing system. If a standard
Licensed Program feature that was previously unavailable due to reasons
described above subsequently becomes available within Licensee's environment for
any reason, Licensee may purchase implementation of such additional feature at
S1's standard rates.

STATEMENT OF WORK: The Statement of Work detailing the general Services tasks
(the "Tasks") is outlined below. Licensee's performance of Licensee's
obligations under the Tasks is a material condition to S1's performance
hereunder. Licensee shall be responsible for any costs incurred by S1 as a
result of Licensee's non-performance of any Licensee Tasks or the
Pre-implementation Licensee Requirements described above. The Task descriptions
include definitions of services to be provided by S1 hereunder. Any additional
services beyond such definitions may be provided by Licensor in Licensor's sole
discretion, and are subject to (i) Licensee's agreement to pay the applicable
additional fees calculated on an hourly basis at S1's standard rate for such
services, and (ii) scheduling of the additional services at the sole discretion
of S1.

                                  Page 8 of 16

<PAGE>

                                STATEMENT OF WORK

<TABLE>
<CAPTION>
   SERVICE                                      TASK                                  RESPONSIBLE PARTY
-------------------------------------------------------------------------------------------------------
<S>               <C>                                                                 <C>
                  S1 conducts Kickoff Meeting with Licensee wherein S1 provides           S1/Licensee
INSTALLATION      Licensee with project milestone activities, scope and
                  objectives, and the S1 Web Editor for System Settings (WESS)
                  -------------------------------------------------------------------------------------
                  Licensee fills out WESS online. Up to ten (10) hours of                  Licensee
                  consulting from S1 is available to assist Licensee with
                  completing WESS.
                  -------------------------------------------------------------------------------------
                  S1 conducts the Implementation Workshop with the Licensee               S1/Licensee
                  where  the completed WESS requirements are reviewed.
                  -------------------------------------------------------------------------------------
                  Licensee signs off on the WESS requirements for the                      Licensee
                  implementation; any deviations from the approved requirements
                  will result in a Change Order and additional fees.
                  -------------------------------------------------------------------------------------
                  S1 provides Licensee the final implementation project plan.                 S1
                  -------------------------------------------------------------------------------------
                  Setup & configuration of the Administration PC is completed             S1/Licensee
                  via PC Anywhere.
-------------------------------------------------------------------------------------------------------
                  S1 provides the education services as purchased and paid for by             S1
                  Licensee.  Unless agreed otherwise in writing, all training is
                  provided remotely via WebEx.
  TRAINING        -------------------------------------------------------------------------------------
                  Licensee shall cause Licensee's designated contacts (minimum 2)          Licensee
                  and project team members to attend the education services prior
                  to initiation of any Friends & Family testing.
-------------------------------------------------------------------------------------------------------
  BRANDING/       Licensee completes Licensee-specific Branding and configuration          Licensee
CONFIGURATION     of the Licensed Programs via WESS; any additional branding or
                  configuration provided outside of WESS is subject to custom
                  programming fees at S1's standard rates and scheduled at
                  S1's sole discretion. "Branding" means one brand of bank
                  look and feel.
-------------------------------------------------------------------------------------------------------
                  S1 provides the Licensee with a Test Approach document that can             S1
  TESTING         be utilized by the Licensee during Licensee's Friends & Family
                  Testing
                  -------------------------------------------------------------------------------------
                  S1 confirms download/exchange of data from host system to the               S1
                  Licensed Program(s)
                  -------------------------------------------------------------------------------------
                  Licensee performs Friends & Family Testing for a maximum of 45           Licensee
                  calendar days or one month-end cycle; any additional testing
                  will impact the project milestones and is subject to additional
                  fees.  Licensee must use S1's Case Management Tool to enter and
                  track all queries and functional irregularities with the
                  Licensed Programs.  S1 will provide fifteen (15) hours of
                  Consulting Services during Friends & Family testing to a weekly
                  checkpoint meeting and address Licensee functionality
                  questions. (Consulting Services excludes defect analysis and
                  resolution).
-------------------------------------------------------------------------------------------------------
</TABLE>

                                  Page 9 of 16

<PAGE>

                                 SCHEDULE A.2.2
                      IMPLEMENTATION SERVICES FOR MEMO POST

SCOPE OF SERVICES: S1 shall implement the Internet Banking System ("IBS") module
for Memo Post as integrated with one implementation of the S1 IBS application
licensed from S1 by Client as described herein (the "Services"). The Services
are estimated to require 5 to 10 days and shall be complete upon S1's
confirmation of availability of the Memo Post through the IBS system. The
Services do not include professional services with regard to future upgrades,
data conversion or migration services, or development or migration of any
customized code not made generally commercially available by S1. All Services
will be performed remotely.

CLIENT REQUIREMENTS: Client shall designate a Technical Contact to be available
throughout the Services who has sufficient technical expertise and corporate
authority to make all necessary decisions and take all necessary actions on
behalf of Client. Client will obtain and maintain the communications equipment
and lines necessary for performance of the Services, including providing S1
access to Client's implementation of IBS via pcAnywhere if Client's
implementation of IBS is on-site on the Client premises. Client must have both a
production environment and a test environment (including test accounts and data)
suitable for testing all aspects of the Memo Post IBS module. If Client opts to
forego creating a suitable test environment and requires testing to be performed
in Client's production environment, Client expressly assumes all responsibility
and liability for any resulting errors, damages or claims. Failure to comply
with any of these Client Requirements may cause Client to lose Client's
scheduled date for performance of the Services such that rescheduling shall be
at S1's discretion.

CHANGE ORDERS: Additions or modifications to this Work Order may be accomplished
through the use of a "Change Order". The party requesting the change shall
submit a written request to the other party specifying the desired additions or
modifications to the Work Order (the "Change Notice"), and the party receiving
such Change Notice shall submit a proposal to the party submitting such Change
Notice. S1 will include, either on the Change Notice if it is the party
submitting the Change Notice, or on the proposal, if it is the party responding
to the Change Notice, a statement of any estimated additional fees and any
changes to the Project Milestones or Deliverables as a result of such requested
change. Upon both parties' signatures to the proposal it shall become the Change
Order. Except as expressly provided herein, a Change Order is required for any
additions or modifications to the implementation project plan following approval
of such plan by Client.

STATEMENT OF WORK: The Statement of Work detailing the general milestones for
performance of the Services is outlined below. Client's conformance to the
milestones is a material condition to S1's performance hereunder. Client shall
be responsible for any costs incurred by S1 as a result of Client's
non-conformance to the milestones or the Client Requirements described above.
The milestone descriptions include defined levels of services to be provided by
S1 hereunder. Any additional services requested by Client beyond such defined
levels are available subject to (i) Client's payment of the applicable
additional fees calculated on an hourly basis at S1's standard rate for such
services, and (ii) scheduling of the additional services at the sole discretion
of S1.

<TABLE>
<CAPTION>
   SERVICE                              MILESTONE                                       RESPONSIBLE PARTY
---------------------------------------------------------------------------------------------------------
<S>               <C>                                                                   <C>
INSTALLATION      S1 conducts Kickoff Meeting with Client wherein                            S1/Client
                  S1 provides Client with  project milestone activities,
                  scope and objectives. S1 will provide product/add-on
                  current capability. S1 will also provide the Memo Post file
                  specifications.
                  ---------------------------------------------------------------------------------------
                  Client designates Client's Technical Contact for the Services.              Client
                  ---------------------------------------------------------------------------------------
                  Client provides a Memo Post batch file for mapping and                      Client
                  testing. S1 will  provide up to one (1) hour of
                  consulting services on the file layout and mapping. Any
                  further time will be charged at standard S1 time and
                  material rates
                  ---------------------------------------------------------------------------------------
                  S1 provides Client the final implementation project plan                   S1/Client
                  and Client  approves; any deviations from the approved
                  project plan will require a Change Order and additional
                  fees, if applicable.
                  ---------------------------------------------------------------------------------------
                  Client will provide pcAnywhere access to system. If                         Client
                  consulting time is required for setup of the pcAnywhere
                  session, standard time and material charges from S1 will
                  apply. If Client is on premise, then remote access is via
                  TCP/IP or VPN.
---------------------------------------------------------------------------------------------------------
   TESTING        S1 confirms availability of the Memo Post through the IBS system              S1
                  ---------------------------------------------------------------------------------------
                  Client confirms Memo Post balance information is                            Client
                  available and correct when viewed on the Internet.
                  S1 will provide up to one (1) hour of consulting services
                  during testing.
---------------------------------------------------------------------------------------------------------
</TABLE>

COMPENSATION:

Memo Post Module Implementation Services:      SEE SCHEDULE B OF THIS AGREEMENT.
Total due upon execution of this Work Order:

OTHER TERMS:

S1's ability to meet specific milestones or to perform the Professional
Consulting Services as described in this Work Order may be dependent upon
delivery to S1 of certain information, media, equipment, references, and other
support. S1 shall not be held responsible for Services dependent upon such
support or refunds of prepayment towards such Services if Client, Client's
representatives, or any other of Client's vendors or associates fail to deliver
that support in a timely manner. The pricing shown above is valid for thirty
(30) days after the Work Order Date shown above, and is subject to change
thereafter unless accepted as shown by Client's authorized signature below
within such thirty (30) day period.

This Work Order is effective upon the later date shown following the signatures
of the parties, below (the "Effective Date"), and supersedes all prior
agreements, whether oral or in writing, regarding the subject matter addressed
herein. This Work Order may only be modified by a written agreement signed by
the parties. The parties have each indicated their acceptance of the terms and
conditions set forth herein by signature of their duly authorized representative
in the space provided below.

                                  Page 10 of 16

<PAGE>

                           SCHEDULE A-2.3 - WORK ORDER
                      CUSTOMER CENTER DEVELOPMENT SERVICES

SCOPE OF SERVICES: The "Development Services" are the development and deployment
of a Licensee-branded, custom web site in HTML that Licensor will integrate with
the Customer Center and/or any applicable optional modules, as licensed and paid
for by Licensee hereunder. The Development Services are estimated to require 45
to 55 business days and are complete upon completion of the final Milestone
listed below. This Work Order describes the standard implementation of one
production instance of the Customer Center Web Site; additional services are
subject to additional fees. The major phases of the Development Services are set
forth below. The features and/or functionality of the Customer Center may change
during the Initial Term and any Renewal Term, provided that at all times the
Customer Center will substantially conform in all material respects with the
then-current version of the user documentation.

LICENSEE RESPONSIBILITIES: Subject to Section of Schedule A-2, prior to
commencement of the Development Services, Licensee shall designate one or more
representatives to be available throughout the project. Such representative
shall act as Licensee's project manager and shall have sufficient authority and
be responsible for preparing and delivering all Licensee communications and
deliverables to S1. Licensee shall provide the following deliverables no less
than one week before the scheduled commencement of the Development Services.

-        Answers to the Online Questionnaire.

-        An electronic copy of Licensee's Logo. Preferred format is JPG.

-        A site map outlining the titles of all of the web site pages to be
         created, appropriately sized and proportioned for the number of pages
         of content as set forth below.

-        The Licensee Content or text that will appear on each of the pages
         listed in the Site Map. An MS Word document is preferred.

Failure to comply with any of these responsibilities may cause Licensee to lose
Licensee's scheduled project date such that rescheduling of Licensee's
implementation shall be at the sole discretion of Licensor.

CHANGE ORDERS: Additions or modifications to this Work Order may be accomplished
through the use of a "Change Order". The party requesting the change shall
submit a written request to the other party specifying the desired additions or
modifications to the Work Order (the "Change Notice"), and the party receiving
such Change Notice shall submit a proposal to the party submitting such Change
Notice. Licensor will include, either on the Change Notice if it is the party
submitting the Change Notice, or on the proposal, if it is the party responding
to the Change Notice, a statement of any estimated additional fees and any
changes to the Milestones or any deliverables as a result of such requested
change. Upon both parties' signatures to the proposal it shall become the Change
Order. A Change Order is required for any additions or modifications to the
Development Services project plan following approval of such plan by Licensee as
described below during the first phase of the Development Services.

PROJECT ASSUMPTIONS: The scope of this engagement is limited by the following
assumptions. Requirements over and above these limitations will be defined in a
mutually agreeable Change Order and may be subject to additional charges.

1)       The Licensee Web Site shall consist of no more than 15 pages. A page
         consists of a single HTML Page or Frameset that contains no more that
         10,000 characters of text, and operates as the final destination of a
         hyperlink on the Client Web Site.

2)       This Work Order does not include the integration of optional modules
         for Customer Center, including but not limited to: Electronic Forms,
         Image Statement modules or interfaces, stand-alone products such as
         Forms Manager, or additional services such as DNS transfer unless such
         optional modules and/or services have been specifically licensed and
         paid for by Licensee.

3)       Custom-developed graphics such as logos and animations are outside the
         scope of this Agreement and available by Change Order only.

4)       S1 must have two weeks notice prior to publishing a Client Web Site on
         the World Wide Web. S1 is not responsible for the actions of outside
         domain name or Internet service providers.

STATEMENT OF WORK: The Statement of Work detailing the project Milestones is
outlined below. Licensee's conformance to the Milestones is a material condition
to S1's performance hereunder. Licensee shall be responsible for any costs
incurred by S1 as a result of Licensee's non-conformance to the Milestones or
the Licensee Requirements described above. These costs are calculated on an
hourly basis at S1's standard rate for web site development and Customer Center
integration. The Milestone descriptions include defined levels of services to be
provided by S1 hereunder. Any additional services requested by Licensee beyond
such defined levels are available subject to (i) Licensee's payment of the
applicable additional fees calculated on an hourly basis at S1's standard rate
for such services, and (ii) scheduling of the additional services at the sole
discretion of S1.

<TABLE>
<CAPTION>
  DEVELOPMENT                                                                                      RESPONSIBLE
     PHASE              SERVICE                              MILESTONE                                PARTY
--------------------------------------------------------------------------------------------------------------
<S>                   <C>            <C>                                                           <C>
                                     Kick-off meeting with Licensee wherein project milestones
                                     and Licensee preferences for web site look and feel are
                                     discussed.
INCEPTION &             PROJECT      -------------------------------------------------------------     S1
ELABORATION           MANAGEMENT     Delivery of Project Plan based
                                     upon Pre-implementation
                                     Deliverable dates and development
                                     slot for approval by Licensee.
--------------------------------------------------------------------------------------------------------------
                                     Graphic compositions for Licensee Web Site.  These are
                                     static representations of a home page and an interior             S1
                                     page.  They provide a representation of the general
CONSTRUCTION            GRAPHIC      appearance of the web site.
                      COMPOSITION    -------------------------------------------------------------------------
                                     Licensee selects composition and provides any final            Licensee
                                     feedback on revisions to look and feel
--------------------------------------------------------------------------------------------------------------
</TABLE>

                                  Page 11 of 16

<PAGE>

<TABLE>
<S>                   <C>            <C>                                                            <C>
                                     Revised Composition made available to Licensee                    S1
                                     -------------------------------------------------------------------------
                                     Signed approval of Graphic Composition from Licensee           Licensee
                      ----------------------------------------------------------------------------------------
                      FUNCTIONAL     S1 Development team creates functional home and interior          S1
                       PROTOTYPE     page from Graphic Composition
                                     -------------------------------------------------------------------------
                                     Licensee provides feedback on functional prototype             Licensee
                                     -------------------------------------------------------------------------
                                     Revised Functional Prototype made available to Licensee           S1
                                     -------------------------------------------------------------------------
                                     Signed approval of Functional Prototype from Licensee          Licensee
--------------------------------------------------------------------------------------------------------------
                                     Creation of remaining functional parts of web site from
                                     Functional Prototype.  Entry and formatting of Licensee           S1
                                     Content into web site
                                     -------------------------------------------------------------------------
                                     Licensee provides feedback on Production Build                 Licensee
                                     -------------------------------------------------------------------------
TRANSITION            PRODUCTION     Revised Production Build made available to Licensee               S1
                       BUILD OUT     -------------------------------------------------------------------------
                                     Declaration that Web Site is complete and ready for
                                     Quality Assurance Phase from Licensee                          Licensee
                                     -------------------------------------------------------------------------
                                     Thorough examination of entire Licensee web site for
                                     functionality, graphic quality standards compliance,
                                     browser and computing platform compliance                         S1
--------------------------------------------------------------------------------------------------------------
OPERATION                QUALITY     Implementation of changes required by QA testing results          S1
                        ASSURANCE    -------------------------------------------------------------------------
                                     Notification of Web Site Completion and provision of              S1
                                     Customer Center access.
--------------------------------------------------------------------------------------------------------------
</TABLE>

                                  Page 12 of 16

<PAGE>

SCHEDULE B - FEE SCHEDULE

         [Intentionally Omitted from SEC Filing]

                                  Page 13 of 16

<PAGE>

             SCHEDULE C - LICENSEE AFFILIATES, DESIGNATED LOCATIONS

LICENSEE AFFILIATES

NONE

DESIGNATED LOCATIONS

Internet Banking System: S1 Data Center

Voice Banking System: 1st Colonial National Bank
                          1040 Haddon Ave.,
                          Collingswood, NJ 08108

                                  Page 14 of 16

<PAGE>

               SCHEDULE F -- CUSTOMER CENTER TERMS AND CONDITIONS

1.       DEFINITIONS

1.1      LICENSEE WEB SITE. A custom web site developed by Licensor in HTML in
accordance with Licensee's written specifications subject to the terms and
conditions of this Agreement. The Licensee Web Site does not include any
Integration Code or Third Party Products.

1.2      CUSTOMER CENTER. Licensor's proprietary dynamic, database-driven
software application accessible over the Internet.

1.3      INTEGRATION CODE. Software code developed by Licensor to
functionally integrate any Licensee-owned web site with the Customer Center.

1.4      PROJECT COORDINATOR. Licensor will assign a Project Coordinator who
shall be Licensee's primary contact for all communications regarding the
Development Services, including Change Orders and Hold Status

1.5      MILESTONES. The project milestones described in detail by deliverable,
responsible party, and allotted time in the applicable Work Order.

1.6      TECHNICAL CONTACT. Licensee's designated technically qualified employee
who shall be responsible for all communications to Licensor related to
Licensor's performance of the Services hereunder.

1.7      WORK PRODUCT. The Licensee Web Site and Integration Code, collectively.

2.       SERVICES PROVIDED

2.1      DEVELOPMENT SERVICES. Subject to Licensee's payment of the applicable
fees, Licensor will perform such design, development, programming and other
services as are described in the Statement of Work set forth in the applicable
Work Order attached to this Agreement (the "Development Services").

2.2      HOSTING SERVICES. The Customer Center is hosted on servers owned or
operated by Licensor or by a third party for the benefit of Licensor. Subject to
Licensee's payment of the applicable fees, Licensor will also host any Licensee
web site such that Licensee's Customers may access and use the Customer Center
via the Licensee web site subject to the following: (i) Licensor may, in its
sole discretion, require that any non-Licensor created Licensee web site source
code meet Licensor's requirements for security and level of functionality; and
(ii) Licensor's then-current server configuration is compatible with all
components of the Licensee web site. Subject to Licensee's payment of the
applicable fees, Licensee will receive: (a) 15 MB of hard drive space; (b) 3 GB
of data transfer a month; and (c) Domain Name Server ("DNS") hosting. Any use of
more than the above-stated hard drive space, data transfer volume and/or
additional DNS hosting of domain names post-installation will result in
additional fees at Licensor's then-current rates. For use of DNS hosting
Licensee must identify Licensor as the Technical Contact on the DNS entry.
Licensor will assist Licensee in establishing or transferring, as applicable,
the DNS for any Licensor-hosted web site to Licensor, and Licensee shall pay
Licensor the related DNS establishment or transfer fee. Licensee shall pay
Licensor its then-current rates for the time Licensor spends reviewing the
source code of the Licensee web site as described above, regardless of whether
Licensor approves such code.

3.       LICENSES GRANTED

3.1      TO LICENSEE. Subject to the terms and conditions of this Agreement,
Licensor grants to Licensee a non-transferable, non-exclusive license to access
and use (and to permit Licensee's Customers to access and use) the Customer
Center solely as integrated with the Licensee Web Site and solely for Licensee's
internal use (and Licensee's Customers' personal use) in accordance with the
terms of this Agreement. Licensee shall have no right to modify the Customer
Center except through Licensee's use, in accordance with the applicable
documentation, of any web-based administration graphical user interface software
tool provided by Licensor. Subject to the terms and conditions of this
Agreement, Licensor grants to Licensee a non-transferable, non-exclusive license
to use the Integration Code solely for the purpose of accessing the
functionality of the Customer Center through Licensee's web site. Licensee shall
have no right to obtain a copy of the software code, either in object or source
code form, for either the Customer Center or the Integration Code for any reason
at any time. This Section 3.1 of this Agreement is not intended to prohibit
potential customers from only browsing the website, provided however; that
Licensee agrees that potential customers shall not have any right to make any
use whatsoever of the Hosting Services either directly or indirectly.

3.2      TO LICENSOR. Licensee grants to Licensor a non-exclusive, royalty-free,
worldwide license to use Licensee's trademarks, service marks, trade names, and
logos, (collectively, "Marks") solely for the purpose of performing the
Services. Licensee grants to Licensor a non-exclusive, royalty-free, worldwide
license to the Licensee Content, as defined below, and the Licensee Web Site, to
reproduce, modify, create derivative works, publicly perform and display the
Licensee Content and the Licensee Web Site solely for the purpose of performing
the Services. Licensee grants to Licensor a non-exclusive, fully paid-up,
perpetual license worldwide to use, copy, modify, distribute, and create
derivative works of the Licensee Web Site, provided that all of Licensee's
Confidential Information and any Marks are removed before any such use. Solely
for Licensor's marketing purposes, Licensee grants to Licensor a license to use,
copy, and distribute hard-copy and live, soft-copy screenshots of only the
homepage of the Licensee Web Site.

3.3      THIRD-PARTY PRODUCTS. Except as otherwise provided herein, Licensor
grants to Licensee a limited, non-exclusive, non-transferable license to use the
software, data, files, tools and all other materials owned and/or distributed by
third parties and delivered to Licensee by Licensor in conjunction with the
Customer Center in accordance with the terms and conditions of this Agreement
(collectively, the "Third-Party Products") for the sole purpose of using the
Work Product consistent with the terms of this Agreement. Licensee agrees to the
terms and conditions with regard to Licensee's use of any Third Party Products
as set forth in EXHIBIT A to this SCHEDULE F, which is incorporated herein by
reference as if set forth in full. The terms of EXHIBIT A are governed by
Licensor's agreement with its current content provider, and are subject to
change upon written notice by Licensor to Licensee. To the extent that the terms
of EXHIBIT A conflict with any other terms of this Agreement, the terms of
EXHIBIT A shall control.

3.4      OTHER RIGHTS. As between the parties, all rights not expressly granted
herein are reserved to Licensor including, without limitation, all rights with
respect to the design, layout, user interface, look and feel, graphics (except
as to graphics of Marks owned by and provided by Licensee), or other nonliteral
elements or characteristics developed by or with the assistance of Licensor and
incorporated into the Work Product.

4.       LICENSEE RESPONSIBILITIES

4.1      COOPERATION. Licensee shall make reasonable efforts to provide Licensor
such information and access to Licensee's personnel, facilities, equipment,
databases, software and other resources as are reasonably required with respect
to Licensor's performance of the Services, or as Licensor may reasonably
request.

4.2      DESIGNATION OF TECHNICAL CONTACT. Licensee shall provide the name of
and contact information for Licensee's Technical Contact to Licensor promptly
upon execution of this Agreement by Licensee.

4.3      LICENSOR DISCLAIMER LANGUAGE. Licensee must maintain on the Licensee
Web Site any disclaimer or similar language as Licensor provides to Licensee,
provided that such language is required either by law or by any third party and
under such terms as Licensor may specify in its reasonable discretion.

4.4      USE OF CUSTOMER CENTER BY LICENSEE'S CUSTOMERS, EMPLOYEES AND
SUBCONTRACTORS. As between the parties, Licensee shall be solely responsible for
any misuse of the Customer Center by Licensee's Customers, employees and
subcontractors in violation of this Agreement.

5.       OWNERSHIP

5.1      OWNERSHIP BY LICENSEE. As between Licensor and Licensee, all documents,
text, trademarks, servicemarks, logos, photographs, video, pictures, animation,
sound recordings, software, computer code and all other works of authorship
provided by the Licensee (collectively, the "Licensee Content") shall at all
times remain the sole property of the Licensee to the extent Licensee represents
that it owns such content. Licensee is solely responsible for the accuracy of
all Licensee Content. Licensee shall also own the Licensee Web Site produced by
Licensor under this Agreement and for which S1 has been paid.

5.2      OWNERSHIP BY LICENSOR. As between Licensor and Licensee, other than the
Licensee Content and Licensee Web Site, all documents, text, photographs, video,
pictures, animation, sound recordings, software (including the Customer Center),
computer code, and all other works of authorship provided by Licensor
(collectively the "Licensor Content") shall at all times remain the sole
property of Licensor.

5.3      THIRD-PARTY PRODUCTS. Except as otherwise described in Section 3.3,
nothing herein shall cause or imply any sale, license, or other transfer of
proprietary rights of or in any Third Party Products from one party to this
Agreement to the other party.

5.4      PROHIBITED ACTIONS. Except as expressly authorized herein, Licensee
shall not (and shall not permit any third party to): (i) copy, modify, create
derivative works, reverse engineer, disassemble, distribute, license or
otherwise transfer the Licensor Content; or (ii) use, rent or lease the Licensor
Content to provide or allow the provision of services for third parties who are
not Customers of Licensee.

6.       TERM AND RENEWAL; SURVIVAL OF PROVISIONS. The initial Term of this
SCHEDULE F is three (3) year from the Effective Date. Thereafter, this Schedule
renews automatically for additional one-year terms, unless either party notifies
the other in writing of the desire to discontinue this Schedule at least sixty
(60) days prior to any renewal date. The provisions of this Schedule, which, by
their nature, are intended to survive termination or expiration hereof, shall so
survive, including but not limited to Section 5.

                                  Page 16 of 16

<PAGE>

                                    EXHIBIT A

1.       License. SI hereby grants to Licensee the nonexclusive right and
         license solely in connection with the provision of Licensee's services,
         to use and view, and allow Licensee's end users to use and view, the
         Third-Party Data, for the purpose of making such available to
         Licensee's Users as part of the Web Site.

2.       Ownership and Restrictions. Licensee expressly acknowledges and agrees
         that (a) the Third-Party Data is proprietary, third party provider
         thereof (the "Content Provider"), currently Inlumen, Inc., is the
         licensor of some of the Third-Party Data, and all Third-Party Data is
         subject to S1's agreements with its Content Provider and Content
         Provider's agreement with its Data providers ("Data Providers"); (b) S1
         and/or its Data Providers retain all proprietary right, title and
         interest, including all intellectual property rights, in all
         Third-Party Data and in any materials provided to Licensee pursuant to
         this Agreement; (c) under no circumstances, is Licensee permitted to
         copy, license, sell, transfer, make available or otherwise redistribute
         the Third-party Data to any entity or person without the prior written
         permission of S1 and its Data Provider(s); and (d) Licensee and the end
         users of the Web Site are specifically restricted from reusing,
         modifying, distributing, transmitting, digitizing, encoding, databasing
         and/or archiving any Third-Party Data. Licensee shall use its best
         efforts to stop any such copying or redistribution immediately after
         such impermissible use becomes known, and shall immediately notify S1
         of such misuse of the Third-Party Data or other violation of the
         restrictions set out in this Exhibit A. Licensee agrees to abide by any
         applicable use and/or presentation restrictions in connection with the
         Third-Party Data as set forth in its agreement with S1 and its Data
         Providers, including the reproduction and/or display of all Content
         Provider legal and copyright notices. Licensee also agrees to cooperate
         reasonably with S1 and Content Provider, so that Content Provider may
         provide the Third-Party Data in accordance with this Agreement.

3.       Data Modification. In the event that a Data Provider agreement
         terminates or is amended for any reason, a Data Provider ceases to
         provide Third-Party Data for any reason, or Data Provider implements
         any other changes in the Third-Party Data, or the format, medium or
         form of delivery of the Third-Party Data, S1 reserves the right, in its
         sole discretion, to either (a) cease providing such Data Provider's
         Third-Party Data to Licensee; (b) alter the nature of the Third-Party
         Data of such Data Provider in accordance with any such amendment or
         change; and/or (c) provide to Licensee a reasonably equivalent
         substitute for the terminated Third-Party Data.

4.       No Warranty. S1, CONTENT PROVIDER AND ITS DATA PROVIDERS DISCLAIM ANY
         AND ALL WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, RELATING TO THIS
         AGREEMENT, THE THIRD-PARTY DATA AND ALL PERFORMANCE HEREUNDER,
         INCLUDING BUT NOT LIMITED TO, ANY WARRANTY OF TITLE, NONINFRINGEMENT,
         MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. S1, CONTENT
         PROVIDER AND ITS DATA PROVIDERS MAKE NO WARRANTIES REGARDING THE
         COMPLETENESS, ACCURACY OR AVAILABILITY OF THE THIRD-PARTY DATA.

5.       Limitation of Liability. EXCEPT AS PROVIDED UNDER THE INDEMNITY
         PROVISION HEREUNDER, IN NO EVENT SHALL S1, CONTENT PROVIDER OR ITS DATA
         PROVIDERS BE LIABLE TO LICENSEE OR ANY OTHER PERSON OR ENTITY FOR ANY
         DIRECT, INDIRECT, SPECIAL, EXEMPLARY OR CONSEQUENTIAL DAMAGES,
         (INCLUDING LOSS OF REVENUES OR PROFITS OR DAMAGES ARISING FROM LOST
         DATA), UNDER ANY CONTRACT, NEGLIGENCE, STRICT LIABILITY OR OTHER
         THEORY, ARISING OUT OF, OR RELATING IN ANY WAY TO THIS AGREEMENT OR
         FROM PERFORMANCE HEREUNDER, WHETHER OR NOT ANY SUCH PARTY HAD ANY
         KNOWLEDGE, ACTUAL OR CONSTRUCTIVE, THAT SUCH DAMAGES COULD BE INCURRED.

6.       Indemnification. Licensee shall indemnify and hold harmless S1, Content
         Provider and its Data Providers against any claim, damages, loss,
         liability or expense, including attorneys fees, arising out of
         Licensee's use of the Third-Party Data in any way contrary to this
         Agreement.

                                  Page 17 of 16EXHIBIT 10.60

                               ORPHAN MEDICAL INC.

                                       AND

                          CELLTECH PHARMACEUTICALS LTD.

                   XYREM(R) LICENSE AND DISTRIBUTION AGREEMENT

*    Denotes confidential information that has been omitted from the exhibit and
     filed separateley, accompanied by a confidential treatment with the
     Securities and Exchange Commission pursuant to Rule 406 of the Securities
     Act of 1933.

<PAGE>

                                TABLE OF CONTENTS

                                                                            Page
                                                                            ----

ARTICLE I        DEFINITIONS...................................................1
ARTICLE II       APPOINTMENT...................................................6

    2.1      Appointment as Distributor........................................6
    2.2      License Grant.....................................................7
    2.3      Right of First Negotiation for Other Indications..................7
    2.4      Subdistributors/Sublicensees......................................8
    2.5      Sales Outside the Territory.......................................8
    2.6      Option to Expand the Territory....................................9
    2.7      Competitive Product...............................................9

ARTICLE III      Regulatory Approvals; COMPLIANCE WITH LAWS AND REGULATIONS....9

    3.1      Marketing Authorizations..........................................9
    3.2      Regulatory Timelines.............................................10
    3.3      Other Approvals..................................................11
    3.4      Return of Initial Payment........................................11
    3.5      Product Changes..................................................11
    3.6      Clinical Trials..................................................12
    3.7      Compliance With Applicable Laws..................................12
    3.8      Approved Product Packaging and Labeling; Relevant Testing........12
    3.9      Steering Committee...............................................13

ARTICLE IV       ROYALTIES AND MILESTONE PAYMENTS.............................14

    4.1      Milestone Payments...............................................14
    4.2      Royalty..........................................................14
    4.3      Minimum Royalty Requirement......................................15
    4.4      Royalty and Milestone Payments...................................15
    4.5      Exchange Rates...................................................16
    4.6      Taxes............................................................16
    4.7      Reports..........................................................16
    4.8      Books and Records; Audit.........................................16

ARTICLE V        REGULATORY Compliance; product manufacture...................17

    5.1      Regulatory Reporting.............................................17
    5.2      Product Recalls..................................................17
    5.3      Adverse Event Notifications and Reporting........................17
    5.4      Correspondence/Complaints........................................17
    5.5      Translations.....................................................18
    5.6      Manufacture; Quality.............................................18
    5.7      Product Specifications...........................................18
    5.8      Manufacturing Audits by Celltech.................................18

                                       i
<PAGE>

                                TABLE OF CONTENTS

                                                                            Page
                                                                            ----

ARTICLE VI       MARKETING EFFORTS............................................19

    6.1      Marketing Efforts................................................19
    6.2      Approved Product Claims..........................................19
    6.3      Development of Marketing Strategy................................19
    6.4      Marketing Materials..............................................20
    6.5      Sales and Technical Literature Developed by Orphan Medical.......20
    6.6      Marketing Reports................................................20
    6.7      Cooperation......................................................20
    6.8      Named Patient Basis Sales........................................21

ARTICLE VII      PURCHASE AND DELIVERY OF PRODUCT.............................21

    7.1      Forecasts........................................................21
    7.2      Pricing..........................................................22
    7.3      Consignment of Product...........................................22
    7.4      Purchase Orders..................................................24
    7.5      Delivery From Other Than Consignment Inventory...................25
    7.6      Transfer Price Variations........................................25
    7.7      Payment Terms....................................................26
    7.8      Short Supply Allocation..........................................27
    7.9      Product Expiration...............................................27
    7.10     Certificate of Analysis..........................................28
    7.11     Storage..........................................................28
    7.12     Rejection of Shipments For Product Non-Conformance...............28
    7.13     Testing of Product Upon Receipt..................................29

ARTICLE VIII     REPRESENTATIONS AND WARRANTIES...............................29

    8.1      Orphan Medical Warranties........................................29
    8.2      Disclaimer.......................................................32
    8.3      Celltech Warranties..............................................32

ARTICLE IX       INDEMNIFICATION..............................................33

    9.1      Indemnification by Orphan Medical................................33
    9.2      Indemnification by Celltech......................................34
    9.3      Procedure........................................................34
    9.4      Insurance........................................................34

ARTICLE X        Intellectual Property Rights Perfection and Use..............35

    10.1     License Perfection...............................................35
    10.2     Quality Standards................................................35
    10.3     Use of Trademark.................................................35
    10.4     Registration and Approvals.......................................35
    10.5     Reservation of Rights............................................36

                                       ii
<PAGE>

                                TABLE OF CONTENTS

                                                                            Page
                                                                            ----

ARTICLE XI       INTELLECTUAL PROPERTY Infringements..........................36

    11.1     Protection of Intellectual Property..............................36

ARTICLE XII      IMPROVEMENTS.................................................37

    12.1     Improvements by Celltech.........................................37
    12.2     Improvements by Orphan Medical...................................37
    12.3     Disclosure.......................................................37

ARTICLE XIII     CONFIDENTIALITY..............................................37

    13.1     Proprietary Information..........................................37
    13.2     Exclusions.......................................................38
    13.3     Third Party Disclosure...........................................38
    13.4     Third Party Confidentiality Agreement............................38
    13.5     Confidentiality of Agreement.....................................39
    13.6     Prior Confidentiality Agreement..................................39

ARTICLE XIV      TERM AND TERMINATION.........................................39

    14.1     Term.............................................................39
    14.2     Mutual Termination...............................................39
    14.3     Termination by Orphan Medical....................................39
    14.4     Rights and Obligations on Termination............................40
    14.5     Partial Termination..............................................40
    14.6     Sell-Off Period..................................................40
    14.7     Survival.........................................................41
    14.8     Assignment of Authorizations.....................................41
    14.9     Rights on Termination for Cause..................................41
    14.10    No Compensation..................................................41

ARTICLE XV       ARBITRATION..................................................41

    15.1     Litigation Rights Reserved.......................................41
    15.2     Arbitration......................................................41
    15.3     Governing Law....................................................42

ARTICLE XVI      FORCE MAJEURE................................................42

    16.1     Events of Force Majeure..........................................42
    16.2     Notice...........................................................43
    16.3     Hardship.........................................................43

ARTICLE XVII     MISCELLANEOUS................................................43

    17.1     Notices..........................................................43
    17.2     Waiver...........................................................44
    17.3     Entire Agreement.................................................44
    17.4     Amendment........................................................44

                                      iii
<PAGE>

                                TABLE OF CONTENTS

                                                                            Page
                                                                            ----

    17.5     Headings.........................................................44
    17.6     Relationship of the Parties......................................44
    17.7     Assignment.......................................................44
    17.8     Severability.....................................................44
    17.9     Publicity........................................................45
    17.10    Counterparts.....................................................45
    17.11    LIMITATION OF DAMAGES............................................45

APPENDICES

Appendix A - Territory
Appendix B - Trademark and Patent Rights
Appendix C - Product Specifications
Appendix D - Standard Operating Procedure for Exchange of Safety Data
Appendix E - Quality Agreement
Appendix F - Celltech First Commercial Year Forecast
Appendix G - Components of Standard Manufacturing Cost and Transfer Price
Appendix H - Regulatory Assistance
Appendix I - Trademark Use Standards

SCHEDULES

ORPHAN MEDICAL
--------------
8.1(e)(ii) - Patent Rights, Trademarks and Other Intellectual Property
8.1(e)(iii) - Infringement or Conflict
8.1(f)(i) - Contracts
8.1(f)(ii) - Default, Breach or Violation
8.1(g)(i) - Claims
8.1(h) - Required Approvals

CELLTECH
--------
8.1(e)(i) - Contracts
8.1(e)(ii) - Default, Breach or Violation
8.1(f)(i) - Claims
8.2(g) - Required Approvals

                                       iv
<PAGE>

                    XYREM LICENSE AND DISTRIBUTION AGREEMENT

         This LICENSE AND DISTRIBUTION AGREEMENT (this "AGREEMENT") is made and
entered into as of October 29, 2003 ("EFFECTIVE DATE"), by and between Orphan
Medical, Inc., a corporation having its principal place of business at 13911
Ridgedale Drive, Suite 250, Minnetonka, Minnesota 55305, USA (together with its
Affiliates, "ORPHAN MEDICAL"), and Celltech Pharmaceuticals, Ltd., a
biopharmaceutical company organized under the laws of England having its
principal place of business at 208 Bath Road, Slough, Berkshire SL1 3WE, United
Kingdom (together with its Affiliates, "CELLTECH").

                                    RECITALS

         WHEREAS, Orphan Medical has developed, patented, registered with the
FDA and currently sells the Product (as defined below) in the United States, and
wishes to sell the Product to Celltech for distribution in the Territory (as
defined below);

         WHEREAS, Celltech has regulatory and marketing expertise necessary to
review and re-format regulatory pharmaceutical applications and to market
ethical pharmaceuticals targeted to specified populations of patients in the
Territory; and

         WHEREAS, Celltech wishes to register, package, label, promote, market,
sell and distribute the Product in the Territory, as hereinafter defined, and
Orphan Medical wishes to authorize Celltech to do so, all on the terms and
conditions set forth herein.

         NOW, THEREFORE, in consideration of the mutual covenants hereinafter
set forth and other good and valuable consideration, the receipt and adequacy of
which are hereby acknowledged, Orphan Medical and Celltech agree as follows:

                                   ARTICLE I.
                                   DEFINITIONS

         "AFFILIATE" shall mean any corporation or non-corporate business entity
controlled by, controlling or under common control with, a party to this
Agreement. For the purpose of this definition, "control" shall mean the direct
or indirect ownership or control of at least fifty percent (50%) of the voting
stock of a corporation or a) in the absence of ownership of at least fifty
percent (50%) of the voting stock of that corporation, or b) in the case of a
non-corporate business entity, if it possesses, directly or indirectly, whether
by virtue of an ownership interest of any kind, by contract or otherwise, the
power to direct or cause the direction of the management and policies of the
corporation or non-corporate business entity or to elect or cause the election
of a majority of the board of directors or other governing body of such
corporation or non-corporate business entity.

         "ADVERSE EVENT" means the ICH guideline definition as further defined
in Appendix D.

         "API" means the active pharmaceutical ingredient sodium oxybate
contained in the Product.

         "CLAIMS" shall have the meaning provided in Section 9.1.

<PAGE>

         "COMMERCIAL FORECASTS" shall have the meaning provided in Section 7.1.

         "COMMERCIALLY REASONABLE EFFORTS" means all those efforts that are
commercially reasonable under the prevailing circumstances, but in no event will
such efforts be less than those that the applicable party would undertake for
its own purposes.

         "COMPONENTS" means the dosing cups and lids, syringe, tamper resistant
seal and PIBA included in the pack issued to customers along with each bottle of
Product.

         "CONTRACT YEAR" means each twelve (12) month period during the Term of
this Agreement starting on 01 January and ending on 31 December.

         "CURRENT GOOD MANUFACTURING PRACTICES" or "CGMP" means the regulations
set forth in 21 C.F.R. Parts 210 - 211, 820 and 21 C.F.R. Subchapter C (Drugs),
Quality System Regulations and the requirements thereunder imposed by the FDA,
and the equivalent regulations and requirements applicable in the Territory.

         "DEA" means the United States Drug Enforcement Administration, or any
successor thereto, having the administrative authority to regulate the
scheduling and distribution of certain drugs in the United States.

         "EMEA" means the European Medicines Evaluation Agency or any successor
entity which coordinates the scientific review of human pharmaceutical products
under the centralized licensing procedure in the European Union.

         "FDA" means the United States Food and Drug Administration or any
successor entity.

         "FIRST COMMERCIAL SALE" means the first sale of the Product by or on
behalf of Celltech to a wholesaler, distributor or end-user in the Territory
following Registration of the Product in the Territory.

         "ICH" means International Conference on Harmonization of technical
requirements for registration and manufacturing of pharmaceuticals for human use
as may be amended from time to time.

         "INDEMNIFICATION AMOUNTS" shall have the meaning provided in Section
9.1.

         "INDICATION" means any medical condition or set of symptoms for the
treatment of which a medicinal product is or may be prescribed.

         "IMPROVEMENTS" means any and all inventions or discoveries (including,
without limitation, manufacturing, manufacturing processes and procedures,
analytical processes, procedures or methods and analytical results) any route(s)
of synthesis, new formulations and/or delivery forms of or with respect to the
API and/or Product (other than the current form of the Product as defined
herein), including all information and data relating thereto, whether patentable
or not, whether originating from Orphan Medical or from Celltech, including
copyrights, trademarks, patents, patent applications, trade secrets, NDAs and
Know How.

                                       2
<PAGE>

         "KNOW HOW" means data and information regarding toxicology,
pharmacology, clinical trials, analytical methodologies, and use of the Product
that is necessary or useful for Celltech to fulfill its obligations hereunder,
all of which is proprietary to Orphan Medical.

         "LICENSED INDICATIONS" means narcolepsy and its associated conditions
including without limitation cataplexy and excessive daytime sleepiness and any
other Indication(s) for which Celltech obtains the right to develop the Product
pursuant to Section 2.3 hereof.

         "LICENSED INTELLECTUAL PROPERTY" shall have the meaning provided in
Section 2.2.

         "MAJOR EUROPEAN COUNTRY(IES)" means those countries listed as such on
Appendix A hereto, as such Appendix may be amended from time to time in
accordance with Section 2.6 of this Agreement.

         "MANUFACTURING KNOW HOW" means all data, information and materials
relating to the manufacture of the Product that is not included in the Know How.

         "MARKETING AUTHORIZATION" means a Regulatory Authority approval
necessary to commercially promote and distribute the Product for a Licensed
Indication in the Territory including where applicable, price and reimbursement
approval which must be granted for the Product to be sold in such country.
Marketing Authorization as applied to any country within the Territory does not
include the approval of a treatment IND, pre-approval human use trials under a
protocol or distribution of a product under an emergency use program, e.g.,
distribution on a Named Patient Basis.

         "MARKET SALES PRICE" means the price for the Product approved by the
Regulatory Authority in each country of the Territory, or in countries where
pricing is not regulated, the price at which Celltech sells the Product.

         "MINOR EUROPEAN COUNTRY(IES)" means those countries listed as such on
Appendix A hereto, as such Appendix may be amended from time to time in
accordance with Section 2.6 of this Agreement.

         "NAMED PATIENT BASIS" means any distribution of Product by Orphan
Medical or Celltech, as its designee, for sale prior to Registration of the
Product through approval by a Regulatory Authority in the Territory or as
otherwise allowed by local law.

         "NDA" means a New Drug Application filed by Orphan Medical with the FDA
or any equivalent successor application for approval to commercially promote and
distribute the Product in the United States.

         "NET SALES" means for purposes of calculating the payments payable by
Celltech to Orphan Medical pursuant to Sections 4.1, 4.2 and 4.3 of this
Agreement, the gross sales prices received by Celltech, its Subdistributors or
Sublicensees from sales of the Product, not including Product samples, sold by
or for Celltech, its Subdistributors or Sublicensees to independent third
parties in the Territory, after in each case, deduction of the following items
allowed, given, granted, paid or borne by or for Celltech, its Subdistributors
or Sublicensees with respect to sales of the Product:

                                       3
<PAGE>

                  (a) all bona fide promotional, cash, trade and quantity
discounts and rebates;

                  (b) all bona fide allowances to end users or credits (whether
in the form of a credit or free Product) on account of price adjustments,
rejection or return, recalls, charge backs or governmental program rebates
(including without limitation to managed care organizations);

                  (c) all sales, consumption, excise and any other taxes,
tariffs, duties or government charges (including any tax such as value added or
similar tax or government charge other than income tax) with respect to sales of
the Product; and

                  (d) any charges for freight or insurance.

         For avoidance of doubt, in order to avoid any double counting when
determining Net Sales (i) Net Sales shall not include any royalties, proceeds or
other amounts paid to Celltech by any Sublicensee and (ii) if the gross sales
price received by a Subdistributor from one or more sales has been counted, then
Net Sales shall not include any royalties, proceeds or other amounts that are
paid by such Subdistributor to Celltech in connection with such sales.

         "OPTION COUNTRY" means a country listed as such on Appendix A hereto
which is not currently located in the Territory and which Celltech has the
option, in its sole discretion, to include in the Territory, if after the
Effective Date, such Option Country joins the European Union or European Free
Trade Area.

         "ORPHAN DRUG DESIGNATION" means designation by the EMEA as an orphan
drug, a drug for a specified rare disease or condition, or the equivalent
designation by a Regulatory Authority of any country of the Territory.

         "PATENT RIGHTS" means European patent Number EP 1140061 and any other
patents listed on Appendix B hereto, the inventions described and claimed
therein relating to the Product and any application for letters patent relating
thereto, including, without limitation a continuation application, a continued
prosecution application, a continuation in part application or a divisional
application, and any supplementary protection certificates, extensions,
substitutions, confirmations, divisions, continuations, continuations-in-part,
patents issuing thereon and reissues or re-examinations thereof (each which
shall be automatically incorporated in and added to this Agreement and shall
periodically be added to Appendix B attached to this Agreement and made a part
hereof).

         "PERSON" means any individual, general or limited partnership,
corporation, limited liability company, association, business trust, joint
venture, Regulatory Authority, business entity or other entity of any kind or
nature.

         "PRODUCT" means Orphan Medical's proprietary pharmaceutical product
Xyrem containing the API as its active ingredient in bulk, unlabeled bottles,
for use as a treatment for the Licensed Indications and all Components therefor
unless Celltech shall elect to source such Components from a Third Party as
contemplated by Section 2.1(d).

         "PRODUCT SPECIFICATIONS" means specifications of the Product as
approved in the Marketing Authorizations including specifications of secondary
packaging, or as otherwise

                                       4
<PAGE>

agreed upon by Orphan Medical and Celltech. The Product Specifications contained
in the NDA as of the Effective Date are attached as Appendix C hereto.

         "PROPRIETARY INFORMATION" shall mean the terms and provisions of this
Agreement and all non-public information or data relating to the Product and the
subject matter hereof first communicated by or on behalf of one party to the
other, whether in writing or orally, including without limitation, all
scientific, clinical, commercial, financial and business information and data,
know-how, compilations, formulae, processes, plans, technical information, new
product information, compounds, formulations, methods of product-delivery, test
procedures, product samples, specifications and other information or data.

         "REGISTRATION" shall have occurred and shall continue in each country
in the Territory when the Marketing Authorization required in respect of such
country shall have been issued and shall continue to be effective.

         "REGULATORY AUTHORITY" means the EMEA and each other regulatory and
drug scheduling authority equivalent to the FDA and DEA in the Territory or a
country in the Territory, which has responsibility for scheduling drugs and
approving Marketing Authorizations.

         "STEERING COMMITTEE" means the joint committee established pursuant to
Section 3.9.

         "SUBDISTRIBUTORS" means any subdistributor (exclusive of
pre-wholesalers, wholesalers and Sublicensees) of the Product in the Territory
appointed by Celltech from and after the Effective Date pursuant to this
Agreement.

         "SUBLICENSEE" means any Third Party who is licensed by Celltech to
promote, market, sell and distribute the Product in the Territory in
consideration of the payment to Celltech of a purchase price for the Product and
royalties on sales of the Product to Third Parties.

         "TERM" shall have the meaning provided in Section 14.1 hereof.

         "TERRITORY" means the Major European Countries and the Minor European
Countries set forth in Appendix A, as such Appendix may be amended from time to
time pursuant to Section 2.6 of this Agreement.

         "THIRD PARTY" means a Person who or which is neither a party to this
Agreement nor an Affiliate thereof.

         "TRADEMARK" means the trademark set forth in Appendix B.

         "TRANSFER PRICE" means the price(s) Orphan Medical charges Celltech for
Product on a per bottle and per Component basis; provided, however, that the
Transfer Price shall not exceed * for the Product, exclusive of Components plus,
when Components are being purchased, 100% of Orphan Medical's cost of
Components. The constituents comprising Orphan Medical's standard manufacturing
cost are listed on Appendix G, which also shows a Transfer Price of * for the
Product including Components as of the date hereof.

                                       5
<PAGE>

         "WEIGHTED AVERAGE LIST PRICE" means Celltech's total annual gross sales
receipts for the Product received from Celltech's customers in the Territory
calculated based on the Market Sales Price, divided by the quantity of Product
sold in the Territory.

                                   ARTICLE II.
                                   APPOINTMENT

         2.1 Appointment as Distributor. Subject to the terms and conditions of
this Agreement, Orphan Medical hereby appoints Celltech, and Celltech accepts
such appointment, as Orphan Medical's exclusive distributor of the Product in
the Territory. During the Term of this Agreement, Celltech shall purchase all of
its requirements of the Product from Orphan Medical as the sole supplier except
as follows:

                  (a) Celltech Manufacturing. Orphan Medical agrees to discuss
with Celltech the feasibility and commercial viability of transferring the
manufacture of the Product to Celltech's FDA approved facilities or qualifying
and registering Celltech as a back-up manufacturer for the Product for the
Territory and/or for the rest of the world.

                  (b) Third Party Manufacturing. If Orphan Medical is unable to
manufacture or supply the quantity of Product ordered by Celltech in accordance
with this Agreement for any reason whatsoever, including, without limitation, by
reason of an event described in Section 16.1 (Events of Force Majeure), Celltech
shall have the right at its sole election to (A) take over the manufacture of
the Product or appoint a Third Party manufacturer to fulfill Orphan Medical's
manufacturing and supply obligations under this Agreement thereafter through the
remaining Term of this Agreement and/or (B) purchase the API from Orphan Medical
and itself convert, or appoint a Third Party manufacturer to convert, the API
into Product through the Term of the Agreement; provided, however, such right
shall be exercisable only if (1) Orphan Medical's inability to manufacture or
supply the Product could reasonably be expected to result in a period of time of
at least three (3) months during which less than fifty percent (50%) of Product
ordered pursuant to Celltech's last firm purchase order would be available to
Celltech for commercial sale, (2) Celltech provides reasonable evidence of its
ability to procure a Third Party manufacturer or take over the manufacture of
the Product or the API more rapidly than Orphan Medical could restart production
and supply of Product, and (3) Orphan Medical's inability to manufacture or
supply Product did not result, wholly or in part, from a breach by Celltech of
its obligations hereunder. Orphan Medical shall provide Celltech with all
reasonable assistance in taking over or obtaining and qualifying a Third Party
manufacturer, including without limitation, licensing its Manufacturing Know-How
to Celltech and/or such Third Party manufacturer solely for the purpose of
manufacturing the API and/or the Product pursuant to this Section 2.1(b).

                  (c) Price for Manufacturing Changes. In the event Celltech
shall manufacture Product or API or cause Product or API to be manufactured
pursuant to this Agreement, a manufacturing royalty, transfer price or price of
manufacturing services to Orphan Medical, and any other related terms therefor,
shall be negotiated in good faith.

                  (d) Component Sourcing. Celltech shall be permitted at any
time during the Term on sixty (60) days prior written notice to Orphan Medical
to cease purchasing some or all Components from Orphan Medical and purchase some
or all of the Components directly from

                                       6
<PAGE>

Orphan Medical's suppliers or qualify another Third Party(ies) to supply
Components; provided that, subject to Sections 7.7 and 7.12, Celltech must
purchase all Components delivered by Orphan Medical pursuant to a firm order
regardless of whether such delivery is made after Celltech delivers notice to
Orphan Medical of its intent to purchase the Components from Orphan Medical's
suppliers or another Third Party(ies). Celltech shall bear any and all costs
associated with qualifying any Third Party(ies) to supply Components pursuant to
this Section 2.1(d); provided that if Orphan Medical desires to purchase the
same Components from such Third Party(ies) as Celltech is purchasing, then
Orphan Medical and Celltech shall each bear fifty percent (50%) of any such
costs.

         2.2 License Grant. Subject to the terms and conditions of this
Agreement, Orphan Medical hereby grants Celltech an exclusive nontransferable,
royalty-bearing right and license (with the right of sublicense, as specifically
set forth herein), to use the NDA, Know How, Trademark, Patent Rights and all
Improvements and Proprietary Information of Orphan Medical related thereto or to
the Product together with the goodwill associated therewith (the "LICENSED
INTELLECTUAL PROPERTY") during the Term, solely in the Territory, and solely for
the purposes of (i) preparing applications for Marketing Authorizations and
obtaining and maintaining Registrations and packaging, labeling, promoting,
marketing, selling and distributing the Product under the Trademark in the
Territory solely for the Licensed Indications and (ii) exercising its other
rights under this Agreement including those provided in Articles X and XI hereof
and making or having made API and/or Product but only as provided in Section
2.1. Except as set forth in Section 6.8, no license is granted to Celltech
hereunder for any rights to market the Product for other Indications. Except as
provided in Section 14.6, the license set forth above shall terminate
automatically upon termination or expiration of this Agreement. Subject only to
the foregoing express license grant and its other rights as herein provided,
Celltech shall not have and shall not assert any claim, right, title or interest
in or to the Licensed Intellectual Property.

         2.3 Right of First Negotiation for Other Indications.

                  (a) Negotiation Notice. If, during the Term of this Agreement,
Orphan Medical desires to pursue further development of the Product in the
Territory for one or more Indications other than the Licensed Indications, or in
the Option Countries or in Australia for the Licensed Indications or one or more
Indications other than the Licensed Indications, Orphan Medical shall provide
written notice to Celltech (the "NEGOTIATION NOTICE") of its intent to negotiate
an agreement therefor. The Negotiation Notice shall identify the relevant
country or countries and Indications. Delivery of a Negotiation Notice shall
create a mutual obligation to negotiate in good faith on an exclusive basis for
the grant to Celltech of exclusive rights to the Product for the specified
countries for such Indication(s). If no response is received within ninety (90)
days after delivery of the Negotiation Notice to Celltech, the offer shall be
deemed declined, and Orphan Medical may then negotiate with any Third Party for
the grant of any license for the Product for such countries for such
Indication(s) subject, however, to the last sentence of Section 2.3(b).

                  (b) Procedure of Negotiations. The parties shall have ninety
(90) days from the date Orphan Medical receives Celltech's response to the
Negotiation Notice to negotiate in good faith (and on a confidential basis), and
enter into a letter of intent, term sheet or final agreement with regard to, as
applicable, Celltech's distribution of the Product in the Territory for

                                       7
<PAGE>

the new Indication(s) or in the Option Countries or Australia for the Licensed
Indications or one or more Indications other than the Licensed Indications. In
the event that (i) Celltech shall have failed to have responded to the
Negotiation Notice within the 90-day period provided in paragraph (a) above or
(ii) within the 90-day period provided in this paragraph (b) Orphan Medical and
Celltech have not entered into such letter of intent, term sheet or final
agreement, Orphan Medical shall have no further obligation to undertake or
continue negotiations with Celltech for such license, and Orphan Medical shall
be free to commence negotiations for a license to the Product for such countries
for such Indication(s) with any Third Party subject to the following: (i) if a
letter of intent, term sheet or final agreement with a Third Party shall not
have been signed by Orphan Medical and such Third Party within two hundred
seventy (270) days of the termination of Celltech's right of first negotiation,
then Celltech's right of first negotiation shall again become effective on the
terms herein provided and (ii) without Celltech's prior written consent, the
terms and conditions agreed by Orphan Medical with such Third Party may not be
in the aggregate materially more favorable to such Third Party than those last
offered to Celltech.

                  (c) Option Countries. If Orphan Medical shall determine to
enter into a license for the Product with a Third Party in an Option Country
upon expiration of Celltech's right of first negotiation pursuant to Section
2.3(b) above, such license shall contain a provision automatically terminating
such License should such country subsequently join the European Union or
European Free Trade Area during the Term and Celltech shall have exercised its
Option under Section 2.6 as to such country.

                  (d) No Trademark License. If pursuant to this Section 2.3
Orphan Medical licenses to a Third Party the Product in the Territory for one or
more Indications other than the Licensed Indications or in the Option Countries
or Australia for one or more Indications other than the Licensed Indications,
then such Third Party shall be obligated to market the Product under a trademark
different from the Product Trademark and Orphan Medical shall not grant, license
or otherwise transfer to such Third Party any rights to the Trademark or
otherwise permit any use of the Trademark by such Third Party.

         2.4 Subdistributors/Sublicensees. Celltech may appoint Subdistributors
and Sublicensees with the prior written approval of Orphan Medical, which
approval shall not be unreasonably withheld. No such appointment or delegation
shall relieve Celltech from any obligations hereunder, and each agreement with a
Subdistributor or Sublicensee shall include terms ensuring the protection of
Orphan Medical's rights under this Agreement. Celltech shall guarantee and be
responsible for the making of all payments due, and the making of reports
required under this Agreement by its Subdistributors and Sublicensees, and their
compliance with all applicable terms of this Agreement. All agreements between
Celltech and its Subdistributors and Sublicensees shall include a provision
prohibiting the further appointment of Subdistributors or Sublicensees, as the
case may be, and a provision terminating the Subdistributor or Sublicensee
agreement to the extent such agreement relates to the Product in the Territory
upon termination of this Agreement for any reason.

         2.5 Sales Outside the Territory. Except as otherwise set forth in this
Agreement, Celltech shall not distribute, sell or otherwise provide the Product
outside of the Territory and shall not solicit customers for the Product outside
the Territory or establish any office through

                                       8
<PAGE>

which orders are solicited or any depot at which inventories of the Product are
stored outside the Territory. Celltech shall not sell the Product to customers
outside the Territory, provided that nothing herein shall preclude Celltech from
selling the Product to any customer, wherever located, who purchases Product
with a view to its use within any country of the Territory.

         2.6 Option to Expand the Territory. If, after the Effective Date, an
Option Country joins the European Union or European Free Trade Area, Celltech,
in its sole discretion, may add such Option Country to the Territory and may
designate such Option Country as a Major European Country or a Minor European
Country. Celltech shall notify Orphan Medical of its decision within thirty (30)
days after the date Celltech first learns of such country joining the European
Union or European Free Trade Area, and, if Celltech so chooses to add such
Option Country to either the Major European Countries or Minor European
Countries, then Appendix A hereto shall be amended to so reflect such addition.

         2.7 Competitive Product. Orphan Medical acknowledges that (i) Celltech
has developed and is marketing methylphenidate in certain countries within the
Territory for Indications other than the Licensed Indications, but that
methylphenidate is occasionally used on an off-label basis to treat the Licensed
Indications; (ii) Celltech is marketing dexedrine in the United Kingdom for the
Licensed Indications; and (iii) Celltech will be marketing Equasym IR in France
for the Licensed Indications. With the exception of the off-label use of
methylphenidate in the Territory, dexedrine in the United Kingdom, and Equasym
IR in France, Celltech shall not, for five (5) years from the Effective Date of
this Agreement, either directly or indirectly through subdistributors,
sublicensees or otherwise, develop, manufacture, promote, market or distribute
products in the Territory that are competitive with the Product; provided,
however, nothing herein shall prohibit Celltech from acquiring, by stock
purchase, asset purchase or merger any company, or division of a company, that
is developing, marketing, manufacturing, promoting or distributing a competitive
product where the annual sales (or in the case of a product in development, the
projected sales) of such competitive product in the Territory are less than
twenty percent (20%) of such company's or division's total annual sales. For
purposes of this Section 2.7, a competitive product shall be one that: (a) is
approved for prescription for a Licensed Indication or (b) is used off-label for
a Licensed Indication and such off-label sales comprise more than twenty percent
(20%) of such product's sales in the Territory or more than twenty percent (20%)
of the sales of the Product in the Territory.

                                  ARTICLE III.
                              REGULATORY APPROVALS;
                      COMPLIANCE WITH LAWS AND REGULATIONS

         3.1 Marketing Authorizations. Celltech shall prepare and submit to
Orphan Medical, (i) within sixty (60) days of the Effective Date, a written plan
for obtaining approval from the EMEA to commercially promote and distribute the
Product for the cataplexy Licensed Indication and (ii) within one hundred twenty
(120) days of the Effective Date, a written plan for obtaining approval to
commercially promote and distribute the Product for the cataplexy Licensed
Indication from the Regulatory Authority of each country in the Territory not
covered by an EMEA Registration. On the basis of Orphan Medical's NDA and the
Know How and related Proprietary Information delivered pursuant to Section 3.2,
Celltech shall collect, assemble, organize and format all necessary components
required to apply for such approvals, and shall

                                       9
<PAGE>

submit such materials to the appropriate Regulatory Authorities in accordance
with Section 3.2. Celltech shall maintain, at its own expense, the Registrations
and other authorizations necessary to import, label, promote, market, sell and
distribute the Product in the Territory. Orphan Medical shall provide, at its
own cost and expense (but subject to the limitations set forth in Section 3.2),
reasonable assistance to Celltech in the acquisition of such Registrations,
including without limitation, the services set forth on Appendix H hereto. All
applications for Marketing Authorizations for the Product shall be submitted in
the name of Celltech and all Marketing Authorizations for the Product shall be
assigned to Orphan Medical upon termination of this Agreement for any reason.
Celltech shall ensure that all pages of documents submitted to Regulatory
Authorities for the purpose of obtaining Registrations and Marketing
Authorizations shall be coded as confidential.

         3.2 Regulatory Timelines. (a) Within thirty (30) days of the Effective
Date, Orphan Medical shall (i) transfer the Orphan Medical Drug Designation in
the Territory from IDIS World Medicines to Celltech, and (ii) provide Celltech
with the NDA and the Know How and the related Proprietary Information to enable
Celltech to prepare and timely file the applications to commercially promote and
distribute the Product for the cataplexy Licensed Indication in the Territory.
Celltech shall use its Commercially Reasonable Efforts to cause a pre-submission
meeting to be held with the EMEA in respect of the cataplexy Licensed Indication
within one hundred eighty (180) days of the Effective Date. Within thirty (30)
days of such meeting with the EMEA, Celltech shall report to Orphan Medical
about the content of such meeting and advise Orphan Medical as to whether
additional data or documentation or additional action is required or deemed
reasonably necessary by Celltech to obtain approval from the EMEA to
commercially promote and distribute the Product for the cataplexy Licensed
Indication. If additional data or documentation or additional action is required
or deemed reasonably necessary by Celltech to obtain such approval and Orphan
Medical has or could readily produce such data or documentation or take such
additional action, Orphan Medical shall so provide the additional data or
documentation or take the additional action at its sole cost and expense;
provided, however, that in the event the cost of any single study or other
report required by the EMEA or deemed reasonably necessary by Celltech shall
exceed * or the aggregate cost of all studies or other reports required by
the EMEA or deemed reasonably necessary by Celltech shall exceed *, Celltech
and Orphan Medical shall meet and discuss in good faith the apportionment of
such costs between them. Provided that Orphan Medical's NDA and other relevant
Know How and related Proprietary Information are deemed reasonably sufficient by
Celltech, Celltech shall, at its own expense, file the application for approval
of the Product by the EMEA as an orphan drug.

                  (b) Following approval from the EMEA to commercially promote
and distribute the Product for the cataplexy Licensed Indication, Celltech shall
use Commercially Reasonable Efforts to obtain Registration of the Product for
the cataplexy Licensed Indication (i) in the Major European Countries no later
than December 31, 2005 (the "REGISTRATION DATE") and (ii) in the other countries
in the Territory within such time frames as are consistent with the regulatory
plan submitted by Celltech to Orphan Medical as provided in Section 3.1; unless,
in any such case, additional data or documentation or additional action is
required, in which case, the timeframe shall be extended by the time required to
generate the additional data or documentation or take the additional action.
Where a Regulatory Authority requires additional data or documentation or
additional action that is not within Orphan Medical's sole obligation as

                                       10
<PAGE>

delineated in paragraph (a) above and that neither party has or could readily
produce or which cannot readily be taken by either party, the parties shall
negotiate in good faith the terms upon which such data or documentation should
be generated or actions taken by either party, if at all, or failing agreement,
to terminate this Agreement in so far as it relates to a country in the
Territory not a member of the European Union or the European Free Trade Area.

                  (c) Anything herein to the contrary notwithstanding, (i)
except as provided in paragraphs (a) and (b) above, in connection with providing
additional data and documentation or taking additional actions pursuant to this
Section 3.2, each party shall be responsible for all costs and expenses of its
respective employees, agents, contractors, sublicensees and subdistributors, and
(ii) no party shall be obligated to conduct any clinical trials after the
Effective Date.

                  (d) Following the development by Orphan Medical of a
supplemental NDA for the excessive daytime sleepiness Licensed Indication, which
such supplemental NDA shall be developed by Orphan Medical as soon as
practicable after the Effective Date, a copy thereof shall be delivered to
Celltech to enable it to prepare an application to the EMEA for approval to
commercially promote and distribute the Product in the Territory for the
excessive daytime sleepiness Licensed Indication. Such application shall be
filed by Celltech no later than the later of (i) issuance of the license to
Celltech by the EMEA for the cataplexy Licensed Indication or (ii) one hundred
eighty (180) days after Orphan Medical delivers such supplemental NDA to
Celltech, unless additional data or documentation or additional action is
required from Orphan Medical or a Third Party, in which case the one hundred
eighty (180) days shall be extended by the time required to generate the
additional data or documentation or take the additional action.

         3.3 Other Approvals. Celltech undertakes and covenants that as soon as
reasonably practicable following the Effective Date it shall take all other
actions to obtain and maintain during the Term all other approvals, licenses and
permits necessary to import, promote, market, sell and distribute the Product in
the Territory.

         3.4 Return of Initial Payment. In the event that following and as a
result of the pre-submission meeting with the EMEA, the parties mutually agree
that it is not possible or commercially viable under the prevailing
circumstances to obtain Registration for the Product in the Major European
Countries, the parties may agree to terminate this Agreement, and such
termination shall be subject to the terms of Article 14. * ountries is not
possible or commercially viable under the prevailing circumstances, then they
shall submit the matter to arbitration in accordance with the provisions of
Section 15.2 of this Agreement.

         3.5 Product Changes. Orphan Medical shall give Celltech ninety (90)
days prior written notice of any major formulation or packaging change to the
Product being requested or required by the FDA, or any other U.S. Regulatory
Authority, whenever such change affects a Registration in any country within the
Territory. Orphan Medical may change the Product, or analytical test methods as
it deems appropriate, provided Orphan Medical continues to supply

                                       11
<PAGE>

Product conforming to the Product Specifications then in effect until such times
as the Marketing Authorizations are amended to reflect such changes. In the
event of such changes, Celltech shall be solely responsible for additional
submissions and/or regulatory updates which may be required by the Regulatory
Authorities in the Territory, provided that all necessary data and information
shall be furnished by Orphan Medical at Orphan Medical's expense for such
purposes, and provided; further that in no event shall Celltech's failure to
obtain any required amendments to the Marketing Authorizations to reflect such
additional submissions and/or regulatory updates, relieve Orphan Medical of its
obligation to supply Product conforming to the Product Specifications. In the
event a Regulatory Authority in any country in the Territory requires a
formulation or packaging change to the Product, Orphan Medical and Celltech
shall cooperate to develop a mutually agreeable plan to address the regulatory
requirement, and, if necessary, to include the production of separate lots, at
Celltech's expense, for the Territory. In the event Orphan Medical and Celltech
mutually agree it is not commercially reasonable to meet such requirements,
Celltech shall cease promoting, marketing, selling and/or distributing the
Product in that country in the Territory and shall promptly terminate the
Registrations in such country. If the parties are in disagreement as to whether
it is commercially reasonable to meet such requirements, then they shall submit
the matter to arbitration in accordance with the provisions of Section 15.2 of
this Agreement.

         3.6 Clinical Trials. The parties shall keep one another fully and
currently informed as to all tests and trials that they intend to carry out for
purposes of compliance with regulatory requirements in the Territory or that
might affect Marketing Authorization applications or Registrations in the
Territory. The parties shall cooperate in the design of such tests and trials in
order to ensure to the maximum possible extent that duplication of effort shall
be avoided, and that the results shall be suitable for filing with the
Regulatory Authorities in the Territory and shall otherwise be useful for
purposes of meeting all applicable regulatory requirements. Without limiting the
generality of the foregoing, the parties shall use their Commercially Reasonable
Efforts to ensure that all clinical trials undertaken after the Effective Date,
if any, shall be designed and conducted in accordance with good clinical
practices and good laboratory practices as established for both the United
States and the European Union.

         3.7 Compliance With Applicable Laws. Celltech shall comply with all
applicable laws and regulations of each country in the Territory (including,
without limitation, any laws or regulations in the Territory governing the
distribution of a scheduled drug, as designated under regulations promulgated by
the DEA). Celltech shall also comply with all U.S. laws applicable to the
Registration, promotion, marketing, sale and distribution of the Product in the
Territory, including but not limited to U.S. Export Administration Regulations,
the US Foreign Corrupt Practices Act and all regulations promulgated by the DEA.
Celltech shall comply with all Marketing Authorizations issued in the Territory.

         3.8 Approved Product Packaging and Labeling; Relevant Testing. After
the Product receives a Marketing Authorization in any country of the Territory,
Celltech shall package and label the Product and shall include all required
labeling for Product sold in such country(ies). For all orders submitted by
Celltech after Registration is received in a particular country, Orphan Medical
shall supply to Celltech unlabeled bottles, and final labeling and packaging of
Product for such country(ies) shall be completed by Celltech. After the Product
receives Marketing Authorization in a country in the Territory, Celltech shall
be solely responsible for all final

                                       12
<PAGE>

release testing in such country(ies) and for ensuring in such country(ies) that
the Product labeling and packaging complies with the Marketing Authorizations
and all other applicable laws of each such country in the Territory. Celltech
shall provide Orphan Medical with copies of all foreign language labels. To the
extent permitted by applicable laws and regulations in each country in the
Territory, all labels shall identify Orphan Medical as the manufacturer of the
Product for Celltech.

         3.9 Steering Committee. Within a reasonable period of time after the
Effective Date, Orphan Medical and Celltech shall form a Steering Committee made
up of commercial and technical employees from both companies that shall have
certain decision-making authority, and provide oversight for the administration
of this Agreement. Each party shall maintain two (2) members on the Steering
Committee with other members added as needed. The parties shall each select one
of its representatives to serve as a co-chairperson of the Steering Committee.
The Steering Committee shall have the authority to conduct the following
activities and such other activities as may be agreed to in writing by the
parties: (a) review ongoing regulatory issues, (b) review the medical aspects of
standards of care in the Territory, (c) review clinical developments across
territories, (d) review marketing campaigns and new marketing plans, (e) review
sales activities and results, (f) review aspects of Product manufacturing
campaigns and Product forecasts, consignment and non-consignment inventory
stocks and ordering, and (g) review the arrangement for distributing Product on
a Named Patient Basis. In the event and to the extent that the Steering
Committee is unable to come to a consensus on any matter relating to the
development or manufacture of the Product or the Registration, packaging,
labeling, promoting, marketing, sale or distribution of the Product outside the
Territory, the views of the Orphan Medical Steering Committee members shall
prevail. In the event and to the extent that the Steering Committee is unable to
come to a consensus on any matter relating to the Registration, packaging,
labeling, promoting, marketing, sale or distribution of the Product within the
Territory, the views of the Celltech Steering Committee members shall prevail.
Notwithstanding the foregoing, in the event a particular matter for which there
is no consensus of the Steering Committee could, in the good faith judgment of
the party who does not have the ultimate decision making authority as to such
matter (as provided in the previous two sentences), materially affect the rights
or obligations under this Agreement of such party, Orphan Medical and Celltech
agree to use Commercially Reasonable Efforts to resolve the matter in a manner
which will minimize the impact on such rights or obligations of such party.
During each Contract Year, the parties shall hold at least four (4) regular
meetings of the Steering Committee. Members of the Steering Committee may
participate in meetings of the Steering Committee in person or by conference
telephone call. At least one (1) of the four (4) Steering Committee meetings
shall be conducted in-person. Employees of each party who are not members of the
Steering Committee may attend meetings of the Steering Committee as required.
In-person Steering Committee meetings shall alternate between Orphan Medical's
designated facility and a facility designated by Celltech. The co-chairpersons
of the Steering Committee shall alternate responsibility for the preparation of
minutes setting forth discussions made at each committee meeting, with the
Orphan Medical Chairperson preparing minutes for the first Steering Committee
meeting; provided, however, that such minutes shall not become official until
agreed upon by both co-chairpersons.

                                       13
<PAGE>

                                  ARTICLE IV.
                        ROYALTIES AND MILESTONE PAYMENTS

         4.1 Milestone Payments. In consideration of the rights and licenses
granted hereunder, Celltech shall pay to Orphan Medical milestone payments
totaling $15,500,000 US Dollars according to the following schedule:

                  (a) $2,500,000 US Dollars on the Effective Date.

                      $ * .

         4.2 Royalty. (a) *

                                       14
<PAGE>

         *

         4.4 Royalty and Milestone Payments. * .

                                       15
<PAGE>

         *

         4.5 Exchange Rates. For purposes of determining the amount of Net Sales
and the amount of royalties payable pursuant to Section 4.2 during any calendar
quarter, the total of all sales in each currency during such quarter shall be
converted into US Dollar currency at the average daily exchange rate for such
calendar quarter as reported by oanda.com or, if such website is not available,
the Wall Street Journal. For purposes of determining the minimum royalty amount
for each Contract Year as provided in Section 4.3, the amounts set forth therein
shall be converted into US dollar currency at the average daily exchange rate
for such Contract Year as reported by oanda.com or, if such website is not
available, The Wall Street Journal.

         4.6 Taxes. Celltech shall be entitled to deduct from royalties paid
hereunder the amount of any withholding taxes or other taxes, levies or charges
required to be withheld by Celltech, to the extent Celltech pays to the
appropriate governmental authority on behalf, and for the account of, Orphan
Medical such taxes, levies or charges. Celltech shall use reasonable efforts
(including making, or assisting Orphan Medical in making, any relevant
application to any tax authority) to minimize any such taxes, levies or charges
which are required to be withheld by Celltech from royalties paid hereunder and
paid on behalf of Orphan Medical by Celltech. Celltech shall promptly deliver to
Orphan Medical proof of payment of all such taxes, levies and other charges,
together with copies of all communications from or with such governmental
authority with respect thereto.

         4.7 Reports. Each royalty payment made by Celltech hereunder shall be
accompanied by a report showing all revenue generated by sales of the Product to
Third Parties (including all sales by Subdistributors and Sublicensees) during
the immediately preceding quarter, the computation of Net Sales, and the
calculation of royalty payments due for such quarter, all on a
country-by-country basis. If actual Net Sales of any Subdistributor or
Sublicensee for that quarter is unavailable at the time such quarterly report is
due, Celltech shall include in its report for that quarter a good faith estimate
of such Net Sales, and an appropriate adjustment for the difference between the
actual and estimated Net Sales shall be made in the report for the following
quarter, with a corresponding adjustment in the amount of royalties payable in
respect of that quarter.

         4.8 Books and Records; Audit. Celltech shall keep for at least three
(3) years or such longer period as may be required by law following the end of
the calendar year to which they pertain, accurate and complete records showing
all sales of the Product by Celltech and its Subdistributors and Sublicensees.
Such records shall include all information reasonably necessary to verify the
total amount and computation of earned royalties hereunder, and shall be open to
inspection and audit, during reasonable business hours, to the extent necessary
to verify the amount of such royalties. Such inspection and audit shall be
conducted at the request and expense of Orphan Medical by an independent
Certified Public Accountant appointed by Orphan Medical. Such inspection and
audit shall be made not more often than once in each Contract Year. Such
Certified Public Accountant shall undertake a confidentiality obligation to
Celltech permitting it to disclose only to Orphan Medical the amount of the
royalties due hereunder, and no other information. Orphan Medical shall bear the
costs of any such inspection and audit; provided that if any inspection and
audit reveals an underpayment of more than five percent

                                       16
<PAGE>

(5%), Celltech shall reimburse Orphan Medical for its reasonable, documented
out-of-pocket costs for such inspection and audit.

                                   ARTICLE V.
                   REGULATORY COMPLIANCE; PRODUCT MANUFACTURE

         5.1 Regulatory Reporting. Celltech shall timely file all reports
relating to the Product required by the Regulatory Authorities in each country
in the Territory and shall deliver a copy of each such report in hardcopy and on
diskette, if available, to Orphan Medical within thirty (30) calendar days of
making such report in accordance with laws in the Territory regarding transfer
of data and confidentiality of patient information.

         5.2 Product Recalls. (a) Each party shall promptly notify the other
party in the event of any recall, market withdrawal or correction of Product
ordered by any Regulatory Authority, whether in the Territory, the United
States, or anywhere in the world. The parties shall cooperate in good faith to
handle and dispose of a recall, market withdrawal or correction in the
Territory.

                  (b) Subject to Section 5.2(c) below, in the event of a recall,
market withdrawal or correction (i) by reason of the failure of all or part of
the Product supplied by Orphan Medical to meet the Product Specifications, any
requirement of the FDA or any Marketing Authorization or other requirement of
applicable law that is not the result of any action or omission of Celltech or
its Subdistributors or Sublicensees as described in paragraph (c) below or (ii)
because Product that meets the Product Specifications, by whomsoever
manufactured, is inherently defective, unsafe, dangerous or may harm users of
the Product, Orphan Medical shall bear the costs of such recall, market
withdrawal or correction (including without limitation Celltech's reasonable
attorney's fees).

                  (c) In the event of a recall, market withdrawal or correction
by reason of the failure of Celltech to have obtained or properly maintained or
complied with a Marketing Authorization or as a result of Celltech's (or its
Subdistributors', Sublicensees' or Third Party manufacturers') breach of any of
their obligations under this Agreement (including without limitation Section
3.7), or the willful misconduct or negligent acts or omissions of Celltech (or
its Subdistributors, Sublicensees' or Third Party manufacturers'), Celltech
shall bear all costs of such recall, market withdrawal, or correction (including
without limitation Orphan Medical's reasonable attorneys' fees).

         5.3 Adverse Event Notifications and Reporting. The exchange of Adverse
Event reports relating to the Product between the parties shall be made
according to the procedures in Appendix D.

         5.4 Correspondence/Complaints. (a) Celltech shall promptly provide
Orphan Medical with copies of any material regulatory correspondence with
respect to the Product in the Territory and all related documentation,
information and other materials received or prepared by Celltech, including, but
not limited to, copies of the proposed applications for Marketing Authorization
prepared by or on behalf of Celltech for Registration of the Products in the
Territory and any subsequent amendments, supplements, or annual updates thereto.

                                       17
<PAGE>

                  (b) Celltech agrees to inform Orphan Medical in writing of all
significant complaints regarding the Product that relate to Product
Specifications within fifteen (15) business days after Celltech's receipt
thereof in all countries of the Territory. Celltech shall also provide written
quarterly reports of all complaints regarding the Product, regardless of
significance, in English, as well as the actions taken by Celltech to address
all such complaints. Such reports shall be delivered to Orphan Medical within
thirty (30) days after the end of each calendar quarter during the Term.

         5.5 Translations. Celltech shall provide Orphan Medical English
translations of any material regulatory correspondence received in a language
other than the English language relating to a Serious Adverse Event (as defined
in Appendix D). Furthermore, Celltech shall provide to Orphan Medical copies of
translations of any other regulatory correspondence and reports delivered
pursuant to Sections 5.1, 5.3 or 5.4 to the extent Celltech has otherwise
translated such correspondence and reports for its own purposes.

         5.6 Manufacture; Quality. Subject to Article VII, Orphan Medical agrees
to manufacture Celltech's requirements for Product as necessary to satisfy
Celltech's forecasts and purchase orders submitted by Celltech pursuant to this
Agreement. Products delivered to Celltech pursuant to this Agreement shall be
manufactured in accordance with the Quality Agreement negotiated and finalized
between Orphan Medical and Celltech prior to Marketing Authorization approval in
any country in the Territory, such agreement to be substantially in the form
attached hereto as Appendix E. Such Quality Agreement shall be agreed upon by
the parties no later than twelve (12) months after the Effective Date. The
Quality Agreement shall include the obligations and pharmaceutical
responsibilities of Orphan Medical, Orphan Medical's sub-contractors and
Celltech relating to the quality assurance requirements for the manufacture and
supply of the Product, all in accordance with cGMP and applicable regulatory
requirements.

         5.7 Product Specifications. Product supplied to Celltech by Orphan
Medical shall meet the Product Specifications that are approved by the
Regulatory Authorities in the Territory. Should the approved Product
Specifications differ from the specifications contained in Orphan Medical's NDA
which are set forth on Appendix C, the Product Specifications approved by the
Regulatory Authorities shall control.

         5.8 Manufacturing Audits by Celltech. Upon sixty (60) days prior
written notice for cause, or with one hundred eighty (180) days written notice
for an annual audit, Celltech or a representative thereof shall have the right,
if within the power of Orphan Medical to grant such right, to participate in the
conduct of compliance or other inspections, audits and/or investigations of the
operations and facilities where the Product and the raw materials and components
used to manufacture, package, inspect, test, store and supply the Product,
including, without limitation, the API and the Components, are manufactured,
packaged, inspected, tested and stored. Such inspections, audits and/or
investigations shall take place during normal business hours at the relevant
manufacturing site(s) in the presence of Celltech and Orphan Medical's
representatives and Celltech shall abide by any confidentiality requirements or
security procedures of Orphan Medical's suppliers. Orphan Medical shall
facilitate and lead the audit, and it shall be Orphan Medical's responsibility
to discuss any audit findings with its sub-contractors and suppliers. Celltech
and Orphan Medical along with any other licensing partner

                                       18
<PAGE>

will agree upon a final single audit report that will be sent to the vendor by
Orphan Medical. In the event of any disagreement among the parties relating to
the audit report, Orphan Medical shall be the deciding entity and will finalize
the audit report. Orphan Medical shall require its sub-contractors and suppliers
to take all reasonably necessary corrective actions identified by Celltech as
necessary to comply with cGMP requirements and Registrations in the Territory.
In the case where a vendor will not allow Celltech to accompany Orphan Medical
during such audit, Orphan Medical will either audit on behalf of Celltech, or
will jointly, with Celltech engage an independent third party to audit the
supplier on behalf of both parties. Orphan Medical is generally allowed one
audit each year of each vendor. If additional costs are imposed due to
accompaniment of Celltech with Orphan Medical during such audits, Celltech shall
bear the burden of any additional costs.

                                  ARTICLE VI.
                                MARKETING EFFORTS

         6.1 Marketing Efforts. Celltech shall have, directly or through its
Subdistributors or Sublicensees, the following obligations with respect to the
marketing and distribution of the Product in the Territory:

                  (a) To use its Commercially Reasonable Efforts to promote,
market, sell and distribute the Product in the countries in the Territory where
Registrations are in good standing; provided, however, * ;

                  (b) To promptly respond to all inquiries or complaints from
purchasers of the Product;

                  (c) To maintain adequate and qualified staff to enable it to
fully perform its obligations hereunder;

                  (d) To provide adequate and appropriate training to its staff
concerning the Product; and

                  (e) To conduct its business in a professional manner.

         6.2 Approved Product Claims. Celltech shall not make and shall cause
its Subdistributors and Sublicensees to not make claims to any Third Party
concerning the Product except as contained in or permitted by the relevant
Marketing Authorization or as approved in the Territory by the appropriate
Regulatory Authority.

         6.3 Development of Marketing Strategy. Celltech agrees to cooperate in
the development of a consistent message strategy to promote the Product in an
effort to protect and strengthen branding. The global positioning of the Product
for the U.S. and the Territory should be discussed before Celltech launches the
Product in a country in the Territory and at least once per year (or more
frequently if reasonably requested by Orphan Medical) to ensure a message which
is consistent with the local Marketing Authorizations and local treatment
guidelines in

                                       19
<PAGE>

such country, and, where possible, consistent with the international message.
Celltech and Orphan Medical agree to work in good faith to develop such a
strategy.

         6.4 Marketing Materials. Celltech agrees to provide Orphan Medical with
copies of all marketing and promotional materials within thirty (30) days of
first use. Celltech shall be solely responsible for the text, graphics, and
compliance of such materials with the laws and regulations of the Territory, but
may rely (without further investigation) on all Product information provided by
Orphan Medical, except that Celltech may not rely on such information to the
extent Celltech knows or reasonably should know that such information is
inaccurate.

         6.5 Sales and Technical Literature Developed by Orphan Medical. From
time to time during the Term Orphan Medical shall provide to Celltech reasonable
quantities of such training, sales and technical literature and materials
relating to the Product as Orphan Medical may have prepared, including, without
limitation, the materials set forth on Appendix H hereto, and shall make
available copies of promotional artwork it may have. The cost of printing
quantities or customizing materials shall be borne by Celltech. Orphan Medical
shall provide the same to Celltech in electronic format. Orphan Medical shall
also provide Celltech with copies of all post-marketing studies and updates to
its regulatory filings that it provides to the FDA. Celltech shall use such
materials solely as provided under this Agreement. Orphan Medical retains all
right, title and interest in and to such materials subject, however, to the
terms of this Agreement.

         6.6 Marketing Reports. (a) At least one hundred eighty (180) days prior
to the anticipated date of the First Commercial Sale, Celltech shall provide
Orphan Medical with sales and marketing plans for the Major European Countries
for the balance of the Contract Year in which such First Commercial Sale occurs;
provided, however, that in respect of Italy, Celltech shall deliver a proposal
to appoint a sub-licensee within one hundred eighty (180) days prior to the
anticipated date of the First Commercial Sale, and shall provide Orphan Medical
with a sales and marketing plan for Italy as soon as practicable after executing
an agreement with a sub-licensee relating to distribution of the Product in
Italy.

                  (b) By 31 January of each Contract Year following the year in
which the First Commercial Sale occurs, Celltech shall provide Orphan Medical
with a written report summarizing its sales and marketing activities in the
Major European Countries for the immediately preceding year, and sales and
marketing plans in the Major European Countries for the current Contract Year.
Simultaneously with delivery of each marketing report described in this Section
6.6(b), Celltech shall deliver reports as to the sales and marketing activities
in the Minor European Countries (for the same periods as provided for the Major
European Countries), provided that such reports need only outline the most
important aspects and plans of the sales and marketing in such Minor European
Countries. Each report shall include the potential market for the Product in all
countries of the Territory where Registration has been achieved and is
anticipated during the Contract Year in question, and other information that
Celltech deems helpful to determine the market for Product and the proper
marketing methods for the same.

         6.7 Cooperation. Orphan Medical and Celltech agree to maintain open
communications relating to the ongoing performance of this Agreement to ensure
joint understanding of current or new issues, data, and information. Orphan
Medical shall answer reasonable technical or marketing questions Celltech may
submit to Orphan Medical. Celltech

                                       20
<PAGE>

acknowledges that Orphan Medical does not have international marketing and
regulatory staff for preparation of regulatory submissions and marketing plans.
Orphan Medical and Celltech agree to provide each other copies of market
research study protocols and subsequent results therefrom, which studies are
designed to generate qualitative and/or quantitative data pertaining to the
Product, subject to any Third Party rights therein.

         6.8 Named Patient Basis Sales. *

                  (c) *

                                  ARTICLE VII.
                        PURCHASE AND DELIVERY OF PRODUCT

7.1      Forecasts.  *

                                       21
<PAGE>

         *

         7.2 Pricing. *

         7.3 Consignment of Product.

                  (a) General. Within a reasonable period in advance of the
anticipated date of the First Commercial Sale, to the extent importation is then
permitted under applicable law, Orphan Medical shall transfer to Celltech's
specified facility in England at least one full lot quantity * of the Product
(such Product, together with subsequent inventory of the Product to be held by
Celltech as baillee pursuant to the terms of this Section 7.3, shall be
"CONSIGNMENT INVENTORY"). Orphan Medical shall thereafter transfer to Celltech
such quantities of the Product as the parties, with input from the Steering
Committee, may subsequently agree in order that the amount of Consignment
Inventory plus the amount of finished goods inventory maintained by Celltech
shall equal approximately the next six (6) months anticipated demand for the
Product in the Territory; provided, that, Orphan Medical shall in no event be
required to transfer, and Celltech shall in no event be required to hold
Consignment Inventory of more than one and one-half full lot quantities *
without its prior written consent. Celltech shall hold the Consignment Inventory
as baillee for and on behalf of Orphan Medical. Celltech hereby acknowledges and
agrees that Celltech's holding the Consignment Inventory in its premises
pursuant to the terms of this Section 7.3 shall constitute a gratuitous bailment
and not a bailment for valuable consideration governed by the U.K. Supply of
Goods and Services Act 1982. The Product in the Consignment Inventory will at
all times remain under the control of Celltech and be held for and on behalf of
Orphan Medical by Celltech as baillee until such time as the Product is removed
from the Consignment Inventory by Celltech in fulfillment of a purchase order
placed by Celltech in accordance with Section 7.4 hereof or repossessed by
Orphan Medical or returned by Celltech in accordance with Section 7.3(e)(iii)
hereof.

                  (b) Prices and Payment.

                           (i) *

                                       22
<PAGE>

                           (ii) Celltech agrees to act as the fiscal
                  representative of Orphan Medical for purposes of customs,
                  duties and VAT, and Celltech shall be solely responsible for
                  payment of all such duties and taxes to the appropriate U.K.
                  authorities when due.

                           (iii) Celltech shall pay (or reimburse Orphan Medical
                  for) all freight charges, insurance in transit, taxes
                  (including import VAT) and import duties incurred in
                  connection with the transfer of the Consignment Inventory from
                  Orphan Medical's designated supplier in the U.S. to Celltech's
                  facilities.

                  (c) Storage and Risk.

                           (i) Celltech will at all times store the Consignment
                  Inventory in premises which have been certified by the
                  Medicines Healthcare Regulatory Authority and any other
                  relevant Regulatory Authority as suitable for U.K. Schedule 4,
                  Part 1 controlled substances and as otherwise provided in
                  Section 7.11.

                           (ii) In the event that any item of Consignment
                  Inventory is lost or damaged through no fault of Orphan
                  Medical, Celltech shall indemnify Orphan Medical in respect of
                  any such loss or damage by paying the Transfer Price for each
                  item lost or damaged, plus duties and VAT, if any.

                           (iii) Celltech will store the Consignment Inventory
                  separately from any goods that belong to Celltech or any Third
                  Party and shall clearly mark and identify the Consignment
                  Inventory as being held on behalf of Orphan Medical.

                           (iv) Celltech shall at its expense at all times
                  maintain adequate insurance covering any risk of loss or
                  damage to the Consignment Inventory for its full Transfer
                  Price and naming Orphan Medical as sole loss payee and shall
                  forward a copy of evidence of such insurance and any amendment
                  thereto to Orphan Medical.

                  (d) Records. Celltech shall maintain full and accurate records
showing the quantity of Consignment Inventory, the lot identification,
expiration dates and such other information as is necessary to enable a Third
Party to identify that each item of Consignment Inventory forms part of the
Consignment Inventory and is being held on behalf of Orphan Medical under the
supervision and control of Celltech.

                  (e) Termination.

                           (i) The bailment created pursuant to this Section 7.3
                  shall terminate with immediate effect on the last day of the
                  Term of this Agreement.

                           (ii) Orphan Medical may also terminate the bailment
                  created pursuant to this Section 7.3 with immediate effect, by
                  giving written notice to that effect to Celltech, if any
                  liquidation, receivership, administration or other insolvency
                  procedure is commenced or threatened with respect to Celltech
                  or any entity

                                       23
<PAGE>

                  which has control over Celltech. Orphan Medical may also
                  terminate this Agreement if any action is taken or threatened
                  which might jeopardise Orphan Medical's rights in the
                  Consignment Inventory.

                           (iii) Termination of the bailment for whatever reason
                  shall be without prejudice to the accrued rights of a party.
                  Celltech shall not thereafter use any items of Consignment
                  Inventory or remove any items from Consignment Inventory
                  without the specific prior written consent of Orphan Medical.
                  Upon such termination, Celltech's obligations under this
                  Section 7.3 shall continue in full force and effect until such
                  time as Orphan Medical has repossessed the Consignment
                  Inventory as provided in paragraph (f) or Celltech has
                  returned the Consignment Inventory by shipment to Orphan
                  Medical Ex Works (Incoterms 2000) at the Celltech facility at
                  which it is kept.

                  (f) Return of Consignment Inventory. Orphan Medical shall be
entitled to repossess the Consignment Inventory immediately upon termination of
the bailment or prior to termination if Orphan Medical determines in its sole
discretion that repossession is necessary for any reason. Celltech, or any
person managing Celltech's activities, shall give any duly authorised
representative or agent of Orphan Medical such access to Celltech's premises as
are required for purposes of repossessing the Consignment Inventory.

                  (g) Periodic Review. At any time and from time to time, either
party may request the other party to discuss and consider in good faith changes
in, or termination of, the arrangements for Consignment Inventory, whereupon the
parties shall be mutually obligated to negotiate in good faith as to such
matters.

         7.4 Purchase Orders.

                  (a) Content. All purchase orders placed by Celltech shall be
in writing and shall state the quantity of Product, the delivery date, shipping
information (except when the Product is to be drawn from Consignment Inventory
pursuant to Section 7.3) and such other similar information as may be reasonably
requested by Orphan Medical.

                  (b) Lead Time. *

                  (c) Number of Orders. *

                  (d) Maximum Quantities. *

                                       24
<PAGE>

*

                  (e) Miscellaneous. Orphan Medical shall use its Commercially
Reasonable Efforts to fill purchase orders that exceed the quantity limits
provided in paragraph (d) above or that are delivered to Orphan Medical less
than one hundred twenty (120) days in advance of the requested delivery date(s)
as required by paragraph (b) above in respect of purchase orders to be filled by
Orphan Medical from other than Consignment Inventory. No accepted order may be
modified or canceled by either party except as agreed in writing by the parties.
Celltech's orders (including mutually agreed change orders) shall be subject to
the provisions of this Agreement, and any terms or conditions contained therein
that conflict with the terms of this Agreement shall be deemed excluded.

         7.5 Delivery From Other Than Consignment Inventory. Where purchase
orders are to be filled by Orphan Medical from other than Consignment Inventory,
Orphan Medical shall deliver the Products no later than five (5) business days
after the date(s) indicated in the applicable purchase order and no earlier than
five (5) business days prior to such specified date(s). Orphan Medical shall
provide prompt written notice to Celltech in the event of any anticipated delays
in the scheduled delivery date and shall cooperate with Celltech to reschedule
delivery at the earliest possible date so as to minimize the impact on Celltech,
provided, however, the foregoing shall in no way modify or mitigate Orphan
Medical's obligation to supply Product properly ordered in accordance with this
Agreement or Celltech's rights and remedies under this Agreement in respect of
any failure to timely supply, including Celltech's right to assert its remedies
in respect of a breach hereof and Celltech's rights to appoint a Third Party
manufacturer in accordance with Section 2.1(b) or to terminate this Agreement in
accordance with Section 14.2(b). Orphan Medical shall send Celltech on the date
of shipment an invoice and shipping notice, in a format to be agreed upon by the
parties. All Products shall be properly packaged and shipped in accordance with
the Product Specifications and instructions included in the applicable purchase
order. Unless otherwise agreed in writing by Orphan Medical, all deliveries of
the Product from other than Consignment Inventory shall be made Ex Works
(Incoterms 2000) Orphan Medical's designated supplier in the U.S.

         7.6 Transfer Price Variations. *

                                       25
<PAGE>

*

         7.7 Payment Terms.

                  (a) General. *

                  (b) Order and Invoice Non-Conformance.

                           (i) *

                                       26
<PAGE>

                           (ii) *

                           (iii) *

         7.8 Short Supply Allocation. If Orphan Medical is unable to supply all
of Celltech's orders for Product hereunder in a timely manner, Orphan Medical
shall equitably allocate its available sources and supplies among Celltech,
Orphan Medical and Orphan Medical's other partners (distributors, licensees,
agents, etc.) and internal needs, taking into consideration the respective
requirements of each of the parties during a reasonable time period prior to
allocation and their requirements during the allocation period, provided,
however, the foregoing shall in no way modify or mitigate Orphan Medical's
obligation to supply Product properly ordered in accordance with this Agreement
or Celltech's rights and remedies under this Agreement in respect of any failure
to timely supply, including in respect of a breach hereof and Celltech's rights
to appoint a Third Party manufacturer in accordance with Section 2.1(b) or to
terminate this Agreement in accordance with Section 14.2(b).

         7.9 Product Expiration. (a) All Product supplied by Orphan Medical from
other than Consignment Inventory shall have a minimum expiration dating of
thirty-six (36) months at the time of its delivery Ex Work's Orphan Medical's
designated supplier pursuant to Section 7.5.

                  (b) The Product delivered in the initial transfer of
Consignment Inventory from Orphan Medical to Celltech made in accordance with
the first sentence of Section 7.3(a) shall have minimum expiration dating of
forty-two (42) months at the time it is delivered to Celltech's facility in
England. Thereafter, all Product delivered by Orphan Medical as Consignment
Inventory pursuant to Section 7.3 shall have minimum expiration dating of
thirty-six (36) months at the time it is delivered to Celltech's facility in
England. Celltech shall not be required to draw out of Consignment Inventory any
Product with expiration dating of less than twenty-four (24) months on the date
that it is drawn out of Consignment Inventory; provided, however, that if the
Consignment Inventory shall at any time contain Product with less than
24-month's expiration dating, Celltech shall use Commercially Reasonable Efforts
to sell such Consignment Inventory, and provided, further, however, that if
Celltech shall not be able to sell such short-dated Consignment Inventory,
Celltech shall, at Orphan Medical's direction, either return such Product to
Orphan Medical Ex Work's Celltech's facility in England or destroy the Product
and provide the certification described in Section 7.12, and in either such
event Orphan

                                       27
<PAGE>

Medical shall reimburse Celltech for all amounts paid by Celltech pursuant to
Sections 7.3(b)(ii) and (iii).

                  (c) In the event the applicable Regulatory Authority grants an
expiration date of less than thirty-six (36) months, Orphan Medical and Celltech
shall negotiate in good faith a reasonable minimum expiration, taking into
account the differing expiration dates set forth herein for Product which is and
Product which is not drawn out of Consignment Inventory.

                  (d) Celltech shall not sell any Product beyond its stated
expiration date.

         7.10 Certificate of Analysis. With each delivery of the Product into
Consignment Inventory pursuant to Section 7.3 or to Celltech from other than
Consignment Inventory, Orphan Medical shall provide to Celltech (i) a
Certificate of Analysis and Certificate of Conformity confirming that the
Product has been manufactured in accordance with cGMP and the Product
Specifications, (ii) a copy of all batch documentation from the Product
manufacturer for the first three (3) batches of Product delivered to Celltech
and (iii) a copy of the annual stability test report, provided that the
provision of the certificates and other documents listed in (i) - (iii) above
shall not release Celltech from any of its obligations hereunder, including,
without limitation, its obligation to conduct all necessary release testing to
ensure that the Products distributed in the Territory comply with all applicable
regulatory requirements in the Territory.

         7.11 Storage. Celltech shall at its own expense maintain adequate and
suitable storage facilities for the storage of Consignment Inventory and Product
delivered to Celltech from other than Consignment Inventory, in each case in
accordance with cGMP, the Marketing Authorizations, and all applicable laws and
regulations. Orphan Medical or its representative shall have the right no more
than twice per calendar year to inspect, during normal business hours, such
storage facilities upon sixty (60) days prior written notice.

         7.12 Rejection of Shipments For Product Non-Conformance. If Celltech
rejects a shipment from other than Consignment Inventory on the determination
that such shipment of Product fails to conform to the purchase order therefor or
a shipment of Consignment Inventory or Product delivered to Celltech from other
than Consignment Inventory or drawn by Celltech out of Consignment Inventory on
the grounds that it fails to conform to the Product Specifications, Celltech
shall give written notice of such rejection to Orphan Medical within fifteen
(15) days after receipt thereof, in the case of apparent non-conformance, and
sixty (60) days of the receipt of definitive test results obtained pursuant to
Section 7.13 in the case of non-conformance established by such tests. Such
notice of rejection shall specify the manner in which the Product fails to
conform to the relevant purchase order, or otherwise fails to conform to the
Product Specifications. If Celltech fails to provide Orphan Medical such notice
in respect of Product delivered to Celltech pursuant to a purchase order,
whether drawn from Consignment Inventory or otherwise, within fifteen (15) or
sixty (60) days, as the case may be, of the date of delivery, the Product shall
be deemed accepted by Celltech; provided, however, that such deemed acceptance
shall not (i) impair Celltech's right to reject shipment or recover damages in
respect of any non-conformance that is not apparent and cannot be determined by
such tests or (ii) reduce, diminish or alter Celltech's rights to
indemnification as specified in Article IX hereof or to terminate this Agreement
in accordance with Section 14.2(b). If Celltech expects to make a claim against
Orphan Medical in accordance with this Section 7.12, Celltech shall not dispose
or

                                       28
<PAGE>

allow the disposal of the Product in question without the express written
authorization and instructions of Orphan Medical. Any such instructions from
Orphan Medical, or Celltech's compliance therewith, shall not relieve Celltech
of its obligation to dispose of any Product in accordance with all applicable
laws and regulations in the relevant country in the Territory. Celltech shall
not return any rejected Product to Orphan Medical without a Return Material
Authorization ("RMA") from Orphan Medical. Orphan Medical shall promptly issue a
RMA for any reasonably rejected Product, provided, however, appropriate samples
may be retained by Celltech as evidence of the basis for such rejection by
Celltech. Proof of destruction or disposal shall be certified in writing to
Orphan Medical by an officer of Celltech. Within thirty (30) days of receipt of
a statement detailing and documenting all of Celltech's costs and expenses
associated with Orphan Medical's delivery of non-conforming Products, including
without limitation, any payments made or other Indemnification Amounts arising
out of Claims and the return, destruction or disposal of such Product pursuant
to this Section 7.12, Orphan Medical shall reimburse Celltech for all such
amounts. Any disputes between the parties relating to such reimbursement amounts
shall be resolved in accordance with the procedures set forth in Section 15.2

         7.13 Testing of Product Upon Receipt. Celltech shall, as soon as
practical after receipt of Product into Consignment Inventory or from other than
Consignment Inventory, examine the Product for any apparent non-conformance and
carry out or have carried out, routine laboratory testing and other chemical
analysis of the Product as required by the relevant Marketing Authorizations
and/or Regulatory Authority(ies). Celltech shall promptly notify Orphan Medical
if such examination or testing establishes the basis to reject the Product for
non-conformance. Any such notice shall identify the specific claims of
non-conformance and include copies of relevant test results or other materials
indicating such non-conformance. Upon receipt of a notification of
non-conformance, Orphan Medical and Celltech shall compare test results obtained
during release testing of the Product by Orphan Medical to the results Celltech
obtained during acceptance testing to evaluate the potential cause of
discrepancy. If Orphan Medical confirms such non-conformity, it shall promptly
so notify Celltech. If Orphan Medical does not confirm such non-conformity, it
shall promptly so notify Celltech, and the parties shall submit the disputed
Product shipment for testing to an independent testing laboratory or other
independent Third Party expert mutually acceptable to the parties.
Notwithstanding Section 15.2, the findings of the testing laboratory or Third
Party expert shall be binding on the parties. The expenses of such testing shall
be borne by Orphan Medical if the non-conformity is confirmed, and otherwise by
Celltech. Without limiting Celltech's other remedies as herein provided, Orphan
Medical shall promptly replace properly rejected Product. Celltech shall return
such Product or, if requested by Orphan Medical, destroy the Product and provide
the certification described in Section 7.12.

                                  ARTICLE VIII
                         REPRESENTATIONS AND WARRANTIES

         8.1 Orphan Medical Warranties. Orphan Medical represents and warrants
to Celltech that:

                                       29
<PAGE>

                  (a) It is a corporation duly organized, validly existing and
in good standing under the laws of the state of Delaware, U.S.A. and has the
corporate power to own its assets and properties and to carry on its business as
now being and heretofore conducted.

                  (b) It has all requisite power and authority (corporate and
otherwise) to enter into this Agreement and it has duly authorized, by all
necessary action, the execution and delivery hereof by the officer or individual
whose name is signed on its behalf below. Orphan Medical's execution and
delivery of this Agreement does not and will not conflict with or result in a
breach of or a default under its organizational documents or any agreement,
instrument, order, law or regulation applicable to it or by which it or the
Product may be bound. This Agreement has been duly and validly executed and
delivered by Orphan Medical and constitutes Orphan Medical's valid and legally
binding obligation, enforceable against Orphan Medical in accordance with its
terms, except as enforcement may be limited by laws of bankruptcy or insolvency
or other laws of general application relating to or affecting the enforcement of
creditor's rights and general equitable principles.

                  (c) At the time of its shipment to Celltech, each order of
Product shall have been manufactured, stored and shipped in accordance with
cGMP, the Product Specifications and the Marketing Authorizations and other
applicable laws and regulations, shall be in compliance with the Marketing
Authorizations, and shall not be adulterated or misbranded within the meaning of
the United States Food, Drug and Cosmetics Act, as in effect at the time of
shipment;

                  (d) At the time of its shipment to Celltech, each order of the
Product shall conform to the Product Specifications until the expiration of the
shelf life approved by the Regulatory Authorities.

                  (e) Patent Rights, Trademarks and Other Intellectual Property
Rights.

                           (i) Orphan Medical has good title and ownership or
                  rights to the Licensed Intellectual Property free and clear of
                  all liens. To Orphan Medical's actual knowledge, it has all
                  intellectual property rights necessary for (A) the manufacture
                  of the Product by Orphan Medical and the distribution,
                  marketing, promotion and sale by Celltech of the Product in
                  the Territory in accordance with the terms of this Agreement
                  and (B) the grant by Orphan Medical to Celltech of the rights
                  granted under this Agreement.

                           (ii) Schedule 8.1(e)(ii) hereto contains a true and
                  complete list of all Patent Rights in the Territory and all
                  Trademarks and all other intellectual property rights of
                  Orphan Medical relating to the Product in the Territory,
                  indicating for each whether it is registered or is the subject
                  of a pending application with any patent and/or trademark
                  office with jurisdiction in the Territory, and all licenses
                  and other contracts and similar rights relating thereto.

                           (iii) Except as set forth on Schedule 8.1(e)(iii), to
                  Orphan Medical's actual knowledge, the Product as manufactured
                  and delivered to Celltech by Orphan Medical for distribution
                  in the Territory pursuant to this Agreement, and Celltech's
                  use of the Licensed Intellectual Property in the Territory as

                                       30
<PAGE>

                  contemplated hereby, does not and will not infringe or
                  conflict with any intellectual property rights or trade
                  secrets of any Person.

                  (f) Contracts; No Default.

                           (i) Except for those contracts described in Section
                  6.8 or set forth on Schedule 8.1(f)(i) and Schedule 8.1(e)(ii)
                  and except for this Agreement, as of the date hereof, there
                  are no material contracts, agreements, understandings,
                  arrangements or commitments, written or oral, including
                  without limitation, manufacturing, supply, sales agency, sales
                  representative, distributor, dealer, license, supplier,
                  wholesaler, or similar contracts or agreements ("CONTRACTS")
                  of Orphan Medical relating to the Product in the Territory.

                           (ii) Except as set forth on Schedule 8.1(f)(ii),
                  Orphan Medical and, to Orphan Medical's actual knowledge, each
                  other party to Orphan Medical's Contracts referenced in clause
                  (i) above (other than Celltech) has performed in all material
                  respects, and is now performing in all material respects, its
                  obligations under, and is not in material default (and would
                  not by the mere lapse of time or the giving of notice or both
                  be in default) under, or in material breach or violation of
                  any of such Contracts; nor has Orphan Medical received notice
                  of any asserted claim of a default by any other party thereto
                  under, or a breach or violation by such other party of any of
                  such Contracts.

                  (g) Actions.

                           (i) Except as set forth on Schedule 8.1(g)(i), there
                  are no Claims pending or, to Orphan Medical's actual
                  knowledge, threatened against Orphan Medical before any
                  Regulatory Authority that (A) question or challenge the
                  validity of this Agreement or any action taken or proposed to
                  be taken by Orphan Medical pursuant hereto or in connection
                  with the transactions contemplated hereby, or (B) relate to
                  the Product or would if adversely determined, singly or in the
                  aggregate, prohibit or materially impair Orphan Medical's or
                  Celltech's ability to perform its obligations under this
                  Agreement.

                           (ii) There are no outstanding judgments, orders,
                  decrees, writs, awards, stipulations, or injunctions of any
                  Regulatory Authority against or affecting the Product or
                  Orphan Medical with respect to the Product or which would if
                  adversely determined, singly or in the aggregate, prohibit or
                  materially impair Orphan Medical's or Celltech's ability to
                  perform its obligations under this Agreement.

                  (h) Approvals. Except as contemplated by this Agreement or set
forth on Schedule 8.1(h) or as shall already have been made, obtained or given,
no approval of any Regulatory Authority or other Person is required to be made,
obtained or given by or with respect to Orphan Medical or the Product in
connection with the execution or delivery by Orphan Medical of this Agreement,
the performance by it of its obligations hereunder or the consummation by it of
the transactions contemplated hereby.

                                       31
<PAGE>

         8.2 Disclaimer. EXCEPT AS SET FORTH IN THIS ARTICLE VIII, ORPHAN
MEDICAL MAKES NO WARRANTIES, EXPRESS OR IMPLIED, INCLUDING WITHOUT LIMITATION
THE IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND
NON-INFRINGEMENT WITH RESPECT TO THE PRODUCT OR CELLTECH'S SALE AND DISTRIBUTION
THEREOF IN THE TERRITORY. The warranties given by Orphan Medical are for the
sole benefit of Celltech and Celltech shall not extend such warranties to any
customer thereof or any Third Party. This provision does not affect the right of
any patient to pursue legal remedy in the event Orphan Medical provides Product
that is adulterated or misbranded or if Product does not meet Product
Specifications. Except as provided in Section 2.1, nothing in this Agreement
shall be construed as, and Orphan Medical expressly disclaims, any warranty or
agreement to furnish any manufacturing information beyond that required to
obtain Registrations for the Product in the Territory. Celltech agrees that as
between Celltech and Orphan Medical, Celltech alone shall be liable, to the
exclusion of Orphan Medical, for the breach of any warranties given by Celltech,
its Subdistributors or its Sublicensees to customers or others regarding the
Product, provided, however, nothing herein shall reduce, diminish or alter
Celltech's rights as herein provided including its right to assert claims
against Orphan Medical in respect of the same facts that form or might form the
basis of Claims against Celltech by its Subdistributors or Sublicensees and its
or their customers.

         8.3 Celltech Warranties. Celltech represents and warrants to Orphan
Medical that:

                  (a) It is a corporation duly organized, validly existing and
in good standing under the laws of England and has the corporate power to own
its assets and properties and to carry on its business as now being and
heretofore conducted.

                  (b) It has all requisite power and authority (corporate and
otherwise) to enter into this Agreement and it has duly authorized, by all
necessary action, the execution and delivery hereof by the officer or individual
whose name is signed on its behalf below. Celltech's execution and delivery of
this Agreement does not and will not conflict with or result in a breach of or a
default under its organizational documents or any agreement, instrument, order,
law or regulation applicable to it or by which it or the Product may be bound.
This Agreement has been duly and validly executed and delivered by Celltech and
constitutes Celltech's valid and legally binding obligation, enforceable against
Celltech in accordance with its terms, except as enforcement may be limited by
laws of bankruptcy or insolvency or other laws of general application relating
to or affecting the enforcement of creditor's rights and general equitable
principles.

                  (c) It shall and shall cause its Subdistributors, Sublicensees
and Third Party manufacturers to manufacture (if applicable), store, package,
label, promote, market, sell and distribute the Product in compliance with this
Agreement, the Registrations and all applicable laws and regulations in the
Territory.

                  (d) Celltech shall not, and shall cause its Subdistributors,
Sublicensees and Third Party manufacturers to not knowingly, infringe any Third
Party patents, copyrights, trademarks, trade secrets or other Third Party
intellectual property or proprietary rights in the performance of its
obligations hereunder.

                                       32
<PAGE>

                  (e) Contracts; No Default.

                           (i) Except for those Contracts set forth on Schedule
                  8.1(e)(i) and except for this Agreement, as of the date
                  hereof, there are no material Contracts of Celltech relating
                  to the Product in the Territory.

                           (ii) Except as set forth on Schedule 8.1(e)(ii),
                  Celltech and, to Celltech's actual knowledge, each other party
                  to Celltech's Contracts referenced in clause (i) above (other
                  than Orphan Medical) has performed in all material respects,
                  and is now performing in all material respects, its
                  obligations under, and is not in material default (and would
                  not by the mere lapse of time or the giving of notice or both
                  be in default) under, or in material breach or violation of
                  any of such Contracts; nor has Celltech received notice of any
                  asserted claim of a default by any other party thereto under,
                  or a breach or violation by such other party of any of such
                  Contracts.

                  (f) Actions.

                           (i) Except as set forth on Schedule 8.1(f)(i), there
                  are no Claims pending or, to Celltech's actual knowledge
                  threatened against Celltech before any Regulatory Authority
                  that (A) question or challenge the validity of this Agreement
                  or any action taken or proposed to be taken by Celltech
                  pursuant hereto or thereto or in connection with the
                  transactions contemplated hereby, or (B) would if adversely
                  determined, singly or in the aggregate, prohibit or materially
                  impair Orphan Medical's or Celltech's ability to perform its
                  obligations under this Agreement.

                           (ii) There are no outstanding judgments, orders,
                  decrees, writs, awards, stipulations, injunctions of any
                  Regulatory Authority against or affecting Celltech which would
                  if adversely determined, singly or in the aggregate, prohibit
                  or materially impair Celltech's ability to perform its
                  obligations under this Agreement.

                  (g) Approvals. Except as contemplated by this Agreement or set
forth on Schedule 8.2(g) or as shall already have been made, obtained or given,
no approval of any Regulatory Authority or other Person is required to be made,
obtained or given by or with respect to Celltech or the Product in connection
with the execution or delivery by Celltech of this Agreement, the performance by
it of its obligations hereunder or the consummation by it of the transactions
contemplated hereby.

                                   ARTICLE IX
                                 INDEMNIFICATION

         9.1 Indemnification by Orphan Medical. Subject to Section 9.2, Orphan
Medical shall indemnify and hold harmless Celltech and its directors, officers,
employees and agents from and against all claims, disputes, actions,
arbitrations, mediations, litigations, proceedings, suits and governmental
investigations brought by a Third Party and any appeal therefrom (the "CLAIMS")
and all liabilities, damages, losses, costs and expenses (including reasonable

                                       33
<PAGE>

attorneys' fees and expenses in respect of Claims and to enforce rights to
indemnification as herein provided ("INDEMNIFICATION AMOUNTS")) arising out of
(i) a breach by Orphan Medical of any representation, warranty or covenant
provided in this Agreement, including, without limitation, the representations
and warranties set forth in Section 8.l, (ii) an allegation that bodily injury
(including death) or tangible personal property damage was caused by, resulted
from or arose out of the use of the Product for a Licensed Indication by
whomsoever such Product was sold (including Celltech, its Subdistributors and
Sublicensees) and regardless of the legal theory on which such Claim is based,
except, however, where such bodily injury and/or property damage is due to (a) a
circumstance described in Section 9.2(i) or 9.2(iii) hereof or (b) failure of a
Third Party manufacturer appointed by Celltech pursuant to Section 2.1 to
manufacture, store or ship the Product in accordance with cGMP, the Marketing
Authorizations and other applicable laws and regulations or due to the action or
inaction of such Third Party manufacturer which causes the Product to be
adulterated or misbranded within the meaning of the United States Food, Drug and
Cosmetic Act, as in effect at the time of shipment; and (iii) negligence, gross
negligence or willful misconduct of or attributable to Orphan Medical, its
sublicensees (other than Celltech, its Subdistributors, Sublicensees or Third
Party manufacturers), contractors, manufacturers and its or their directors,
officers, agents, employees, consultants or clinical investigators in connection
with the manufacture, storage or supply of API and/or the Product.

         9.2 Indemnification by Celltech. Celltech agrees to indemnify, defend
and hold harmless Orphan Medical and its directors, officers, employees and
agents from and against all Claims and Indemnification Amounts arising out of
(i) a breach by Celltech of any representation, warranty or covenant provided in
this Agreement, (ii) an allegation that bodily injury (including death) or
tangible personal property damage was caused by, resulted from or arose out of
the Products sold by Celltech, its Subdistributors, Sublicensees or Third Party
manufacturers that were used other than for a Licensed Indication, regardless of
the legal theory on which such Claim is based, except, however, where such
bodily injury and/or property damage is due to a circumstance described in
Sections 9.1(i) and 9.1(iii) hereof, (iii) negligence, gross negligence or
willful misconduct of or attributable to Celltech, its Subdistributors,
Sublicenses or Third Party manufacturers and its or their directors, officers,
agents, employees, consultants or clinical investigators in connection with the
storage, packaging, labeling, promotion, marketing, sale and distribution of the
Product in the Territory; and (iv) any express or implied warranty, whether oral
or written, including any implied warranty or the merchantability or fitness of
the Product for a particular purpose asserted by any customer of Celltech, its
Subdistributors or Sublicensees, if such warranty was extended by or arising
from any undertaking, action or inaction of Celltech, its Subdistributors or
Sublicensees.

         9.3 Procedure. A party seeking indemnification (an "INDEMNIFIED PARTY")
shall give the other party (an "INDEMNIFYING PARTY") written notice of any Claim
promptly upon becoming aware thereof. The indemnifying party shall have sole and
exclusive control of the defense of any Claim, including the choice and
direction of legal counsel. The indemnified party shall have the right to
participate in such defense through its own counsel, at its own expense. Neither
party may settle or compromise any Claim for which indemnification is being
sought without the written consent of the other party, which may not be
unreasonably withheld.

         9.4 Insurance. *

                                       34
<PAGE>

*

                                   ARTICLE X
                          INTELLECTUAL PROPERTY RIGHTS
                               PERFECTION AND USE

         10.1 License Perfection. In the event that the execution and filing of
any document is required in connection with the license granted in Section 2.2
to Celltech for the Trademark or Patent Rights under the laws of any country in
the Territory, Celltech shall promptly notify Orphan Medical, and Orphan Medical
shall cause such document to be executed and filed, and Celltech shall sign such
document if necessary and otherwise cooperate in the filing thereof.

         10.2 Quality Standards. All Products sold and marketed under the
Trademark by Celltech or its Subdistributors or Sublicensees, including all
related advertising, promotional materials, and all other related uses of the
Trademark shall comply with the reasonable trademark use standards adhered to by
Orphan Medical in the manufacture, sale and promotion of the Product, which such
standards are set forth in Appendix I. In particular, and without limiting the
generality of the foregoing, upon reasonable request by Orphan Medical, Celltech
shall provide Orphan Medical with samples of Products bearing the Trademark, as
well as copies of all materials, including but not limited to brochures,
professional literature, packaging and consumer instructions, which are created
or intended for use by Celltech, its Subdistributors and/or Sublicensees in the
advertising, promotion, marketing or sale or other distribution of the Product
in the Territory, for examination and testing to verify compliance with the
trademark use standards set forth in Appendix I. Celltech shall also permit
Orphan Medical, not more than once per Contract Year and upon thirty (30) days
prior written notice and at reasonable times during normal business hours, to
examine stocks of the Product held by it or its Subdistributors or Sublicensees
to verify compliance with such standards. Orphan Medical shall notify Celltech
in writing of any noncompliance herewith, and Celltech shall use Commercially
Reasonable Efforts to correct the problem and bring such Products into
compliance with applicable standards.

         10.3 Use of Trademark. Celltech shall and shall cause its
Subdistributors and Sublicensees to market the Product under the Trademark;
provided, however that if the Trademark is unavailable or unusable in a
particular country in the Territory, the parties shall mutually agree on a
suitable alternative. In addition, to the extent permitted by applicable law in
each country in the Territory, all labeling for the Product shall bear a legend,
identifying Orphan Medical as the manufacturer of the Product for Celltech.

         10.4 Registration and Approvals. Attached hereto as Appendix B is a
list of the registrations and pending applications for registration for the
Trademark and Patent Rights in the Territory. Orphan Medical shall file
applications and maintain trademark registrations (including for the Trademark
and any alternative trademarks pursuant to Section 10.3) and patent

                                       35
<PAGE>

registrations (including for the Patent Rights) in each country in the Territory
including without limitation the registrations and pending applications for the
Trademark and Patent Rights in each country listed in Appendix B as shall be
reasonably useful or necessary to protect Celltech's rights under this
Agreement; provided, however, that if Orphan Medical shall fail to file a useful
or necessary application or maintain a useful or necessary registration for any
trademarks, alternative trademarks or patents in a country in the Territory, or
to maintain the Trademark and Patent Rights registrations in each country listed
in Appendix B, Celltech shall have the right to file such applications and
maintain such registrations in each such country in the Territory for such
trademarks, alternative trademarks or patents at the expense and in the name and
on behalf of Orphan Medical (or in Celltech's own name if that is not permitted
in the applicable country). Such registration and use of the Trademark and
Patent Rights shall inure to the benefit of and be on behalf of Orphan Medical.
On any termination of this Agreement pursuant to Article XIV hereof, Celltech
shall promptly assign to Orphan Medical registrations and any applications for
registration of trademarks, alternative trademarks or patents for the Product in
the Territory filed in its name pursuant to this Section 10.4.

         10.5 Reservation of Rights. Except as otherwise provided herein, (i)
nothing in this Agreement shall entitle Celltech to any right, title or interest
in or to any of the Patent Rights, Know How, Manufacturing Know How, Trademark,
Improvements, and Proprietary Information of Orphan Medical or any associated
goodwill, which is and shall remain the sole and exclusive property of Orphan
Medical and (ii) Celltech shall not take and shall cause its Subdistributors,
Sublicensees and Third Party manufacturers to not take any action that might (a)
impair any right, title or interest of Orphan Medical in and to the Patent
Rights, Know How, Manufacturing Know How, Trademark, Improvements and
Proprietary Information; or (b) create any right, title or interest in or to
such Patent Rights, Know How, Trademark, Improvements and Proprietary
Information in Celltech or any other Person. Celltech acknowledges Orphan
Medical's proprietary rights as provided in the preceding sentence, and hereby
waives in favor of Orphan Medical any right Celltech may have in and to the
Patent Rights, Know How, Manufacturing Know How, Trademark, Improvements and
Proprietary Information except as herein provided.

                                   ARTICLE XI
                       INTELLECTUAL PROPERTY INFRINGEMENTS

         11.1 Protection of Intellectual Property. Celltech shall cooperate with
Orphan Medical and take all reasonable actions which Orphan Medical may
reasonably request, at Orphan Medical's sole cost and expense, in order to
protect and enforce Orphan Medical's intellectual property rights, including,
but not limited to, carrying out any act Orphan Medical may reasonably require
in connection with any registration, enforcement or protection thereof. Celltech
shall promptly notify Orphan Medical upon becoming aware of any use in the
Territory by a Third Party of the Patent Rights, Know How, Manufacturing Know
How, Trademark, Improvements or Proprietary Information of Orphan Medical
related thereto, or any other Orphan Medical intellectual property relating to
the Product which may constitute an infringement thereof. Orphan Medical shall
have the first right, at its option, to institute proceedings against Third
Party infringers in respect of infringements occurring in the Territory. If
Orphan Medical elects not to institute such proceedings within a period of
thirty (30) days after its discovery of the infringement, Celltech shall have
the right at its option to do so. The party instituting proceedings in the
Territory pursuant to this Article XI shall bring all such

                                       36
<PAGE>

proceedings in the name of both parties. Orphan Medical shall have the exclusive
right in its sole discretion to institute proceedings solely in its name against
Third Party infringers in respect of infringements occurring outside the
Territory. Each party shall cooperate fully with the other party in connection
with any such proceedings against third-party infringers. All expenses of any
such proceedings shall be borne by the party instituting the proceedings and
damages which may be awarded or agreed upon in settlement of such action shall
be allocated first to reimburse the documented costs of the proceedings incurred
by the party bringing suit, with the balance of such amounts, if any, to be
allocated between the parties in accordance with their relative economic loss
from such infringement.

                                  ARTICLE XII
                                  IMPROVEMENTS

         12.1 Improvements by Celltech. Subject to Celltech's rights therein as
provided elsewhere in this Agreement, including without limitation Section 2.2,
Celltech hereby irrevocably assigns, releases, and transfers to Orphan Medical
its entire right, title and interest in and to any Improvement solely relating
to the API and/or Product (whether patentable or not) made or conceived solely
by Celltech employees or contractors.

         12.2 Improvements by Orphan Medical. Subject to Celltech's rights
therein as provided elsewhere in this Agreement, including without limitation
Section 2.2, Orphan Medical shall own all right, title and interest in and to
any Improvement relating to the API and/or Product (whether patentable or not)
made or conceived solely by Orphan Medical employees or by any Orphan Medical
contractor, other than Celltech, including, without limitation, any
manufacturing or analytical process, procedure or method or any source of
synthesis given to Celltech.

         12.3 Disclosure. Celltech shall promptly disclose to Orphan Medical any
and all Improvements relating to the API and/or Product by Celltech's employees
or contractors, either alone or together with Orphan Medical's employees or
contractors. Celltech shall execute at Orphan Medical's expense any assignments,
applications or other instruments or documents reasonably requested by Orphan
Medical to obtain, maintain, and otherwise to perfect Orphan Medical's interest
therein as provided by this Agreement. Celltech's and Orphan Medical's
obligations hereunder shall survive termination of this Agreement.

                                  ARTICLE XIII
                                 CONFIDENTIALITY

         13.1 Proprietary Information. During the Term hereof and for a period
of five (5) years thereafter, any Proprietary Information disclosed by one party
(the "DISCLOSING PARTY"), directly or indirectly, to the other party (the
"RECEIVING PARTY") under this Agreement shall be deemed confidential, and trade
secret information, whether so designated or not, and shall not be disclosed by
the Receiving Party to any Third Party, except as set forth below. Access to
such Proprietary Information shall be limited to employees, agents, consultants
or contractors of the Receiving Party who reasonably require such Proprietary
Information for purposes of performing the Receiving Party's obligations
hereunder and who are bound to the Receiving Party by similar obligations in
respect of confidentiality and use. Such employees, agents, consultants or

                                       37
<PAGE>

contractors shall be advised of the nature and existence of the undertakings in
respect of such Proprietary Information pursuant to this Agreement and of the
applicability of such undertakings to them. The Receiving Party shall use such
Proprietary Information only to carry out its obligations or to exercise its
rights hereunder and shall not use such Proprietary Information for its own
benefit or for the benefit of others or in any way inconsistent with this
Agreement.

         13.2 Exclusions. Information shall not be deemed Proprietary
Information which:

                  (a) at the time of disclosure, is already in the public domain
or thereafter becomes part of the public domain through no act or omission of
the Receiving Party;

                  (b) was rightfully in the possession of the Receiving Party
prior to the time of the disclosure;

                  (c) is independently disclosed to the Receiving Party by a
Third Party who has not violated any confidential obligation owed to the
Disclosing Party;

                  (d) was independently developed by the Receiving Party without
any use of or reliance on any Proprietary Information of the Disclosing Party;

                  (e) is required to be disclosed by legal process, provided
that, in each case the party so disclosing information timely informs the other
and uses its best efforts to limit the disclosure and maintain confidentiality
to the extent possible and permits the other party to attempt by appropriate
legal means to limit such disclosure;

                  (f) is information which is required to be included in patent
applications or required to be provided to the FDA or any other Regulatory
Authority in the Territory in order that Registrations for the Product can be
obtained or otherwise to comply with applicable regulatory requirements;
provided, however, that no Proprietary Information of Celltech or Orphan Medical
shall be disclosed in any such patent application or Registration without the
prior written consent of the Disclosing Party, which consent shall not be
unreasonably withheld; or

                  (g) is information which is required to be disclosed to
customers, users, and prescribers of the Product or which is reasonably
necessary to disclose in connection with the ethical marketing of the Product,
if applicable.

         13.3 Third Party Disclosure. Disclosure by the Receiving Party to a
Third Party shall be made only to the extent necessary to enable the Receiving
Party to comply with its contractual obligations to the Disclosing Party, and
only if such Third Party has executed a confidentiality agreement containing
terms that are at least as protective as the terms of this Agreement.

         13.4 Third Party Confidentiality Agreement. Each Third Party to which
Proprietary Information is disclosed other than a Regulatory Authority shall
agree in writing prior to such disclosure to keep the Proprietary Information in
strict confidence.

                                       38
<PAGE>

         13.5 Confidentiality of Agreement. Except as otherwise required by law,
applicable regulations or the terms of this Agreement or as mutually agreed upon
by the parties hereto, each party shall treat as confidential the terms and
conditions of this Agreement.

         13.6 Prior Confidentiality Agreement. The Confidentiality Disclosure
Agreement between the parties hereto dated 20 November 2002 is hereby superseded
and terminated. Any disclosure of Proprietary Information by either party
pursuant to such Confidentiality Agreement shall be deemed to have been made
hereunder and shall be subject to this Article 13.

                                  ARTICLE XIV
                              TERM AND TERMINATION

         14.1 Term. This Agreement shall become effective as of the Effective
Date and shall remain in full force and effect until the last of Orphan
Medical's Patent Rights to expire or ten (10) years from the date Celltech
receives approval from the EMEA to commercially promote and distribute the
Product, whichever is longer. This Agreement will be automatically extended
indefinitely thereafter unless and until terminated by Celltech upon not less
than twelve (12) months written notice to Orphan Medical. All references herein
to "TERM" or "TERM OF THIS AGREEMENT" shall be deemed to include both the
initial and any extended terms.

         14.2 Mutual Termination. This Agreement may be terminated prior to its
normal Term as follows:

                  (a) Either party may terminate this Agreement immediately upon
notice if the other party files a petition of any type as to its bankruptcy, is
declared bankrupt, becomes insolvent, makes an assignment for the benefit of
creditors, goes into liquidation or receivership, or otherwise loses legal
control of its business involuntarily.

                  (b) Either party may terminate this Agreement if the other
party materially defaults or commits a material breach of this Agreement and has
failed to cure such default or breach within ninety (90) days of receipt of
written notice thereof from the first party.

                  (c) Either party may terminate this Agreement in accordance
with Section 16.2 or Section 16.3.

         14.3 Termination by Orphan Medical. Orphan Medical may terminate this
Agreement upon written notice to Celltech if any of the following continues
uncured for a period of ninety (90) days following receipt of written notice
thereof from Orphan Medical:

                  (a) Celltech shall have failed to meet the applicable minimum
royalty payment requirements for the Product as provided in Article IV hereof.

                  (b) Celltech ceases to sell the Product in the Territory.

                  (c) Celltech alters any Product except as permitted hereunder
or with Orphan Medical's prior written consent.

                                       39
<PAGE>

                  (d) Except as otherwise herein provided, as to the countries
in which EMEA approval is required for a Registration, if Celltech shall have
failed to obtain a Registration in at least one Major European Country by
December 31, 2006, and as to each other country in the Territory, if Celltech
shall have failed to use Commercially Reasonable Efforts to obtain a
Registration in such country, if, in each case, such failure shall not be due to
a breach by Orphan Medical of its obligations under this Agreement.

         14.4 Rights and Obligations on Termination. In the event of termination
of this Agreement for any reason, the parties shall have the following rights
and obligations:

                           (i) Neither party shall be released from the
                  obligation to make payment of all amounts then or thereafter
                  due and payable in respect of the Term prior to such
                  termination as otherwise herein provided.

                           (ii) Except as provided in Section 14.6, Celltech
                  shall cease to market, promote, sell and distribute the
                  Product and shall return to Orphan Medical, at Celltech's
                  expense, all copies of promotional and technical materials and
                  artwork provided by Orphan Medical; provided, however, that if
                  this Agreement is terminated by Celltech pursuant to Section
                  14.2(b), Orphan Medical shall pay all expenses related to such
                  return of materials and artwork;

                           (iii) Orphan Medical may, if Celltech elects not to
                  pursue its sell-off rights under Section 14.6, repurchase
                  Celltech's inventory of non-obsolete and non-expired Product
                  at the price paid by Celltech for such Product or direct
                  Celltech to sell them to the Third Party or parties selected
                  by Orphan Medical at the price paid by Celltech; provided,
                  however, that if this Agreement is terminated by Celltech
                  pursuant to Section 14.2(b), Orphan Medical must repurchase
                  such inventory at the price paid by Celltech if Celltech
                  elects not to pursue its sell-off rights under Section 14.6;

                           (iv) Celltech shall return or, if requested by Orphan
                  Medical, destroy all of Orphan Medical's Proprietary
                  Information, including, if applicable, all electronic copies
                  thereof and shall certify in writing that it has done so; and

                           (v) Celltech shall comply with the provisions of
                  Section 10.4 regarding the assignment to Orphan Medical of
                  trademark and/or patent rights registrations filed in
                  Celltech's name.

         14.5 Partial Termination. In the event that a cause of termination
shall relate solely to any country not subject to regulation by the EMEA, then
termination of this Agreement shall be limited and applied only to such country
or portion of the Territory.

         14.6 Sell-Off Period. Notwithstanding anything to the contrary in
Section 14.4 hereto, upon expiration or termination of this Agreement, Celltech
shall have the right to continue to distribute its existing inventory of
non-expired Product for a period of six (6) months after the effective date of
expiration or the effective date of termination of this Agreement as the case
may be. Any such continued distribution shall be in accordance with all
applicable laws and regulations and the terms of this Agreement.

                                       40
<PAGE>

         14.7 Survival. The provisions of Articles I (Definitions), VIII
(Representations & Warranties), IX (Indemnification), XIII (Confidentiality),
XIV (Term and Termination), XV (Arbitration), and XVII (Miscellaneous), as well
as the provisions of Articles III (Compliance with Laws and Regulations), XI
(Intellectual Property Infringement), XII (Improvements) Article XIII
(Confidentiality), Article XIV (Termination), Article XV (Arbitration), Article
XVII (Miscellaneous) and the other provisions hereof which by their terms are
intended to survive the expiration or termination of this Agreement (including
without limitation, Sections 3.4 (Return of Initial Payment), Section 4.8 (Books
and Records) and Section 7.3(e) (Consignment of Product - Return of Consignment
Inventory) shall survive any termination or expiration of this Agreement.

         14.8 Assignment of Authorizations. As soon as possible following the
expiration or earlier termination of this Agreement, Celltech shall take all
necessary steps to ensure expeditious assignment of all Marketing Authorizations
and Orphan Drug Designations which are in Celltech's name to Orphan Medical. If
an assignment to Orphan Medical is prohibited under the laws of a country in the
Territory, Celltech agrees to and hereby grants Orphan Medical authorization to
distribute the Product under such Marketing Authorization until Orphan Medical
or its designee has obtained Marketing Authorizations and Orphan Drug
Designations in its own name for the Product in that country; provided that
Orphan Medical shall defend, indemnify and hold harmless Celltech from and
against all Claims and Indemnification Amounts of whatsoever kind or nature that
result from, arise out of or relate to Orphan Medical's distribution of the
Product under the Marketing Authorizations and Drug Designations continuing in
Celltech's name as contemplated by this Section 14.8.

         14.9 Rights on Termination for Cause. In the event of termination of
this Agreement by Orphan Medical pursuant to the provisions of Sections 14.2(a)
or (b) or 14.3 (a) - (c), Celltech shall provide to Orphan Medical, at no
expense to Orphan Medical, its then current list of prospects and customers,
including company name, contact, address and telephone number.

         14.10 No Compensation. In the event of any expiration or termination of
this Agreement for any reason, neither party shall owe any compensation to the
other party for lost profits, lost opportunities, good will, or any other loss
or damage in respect of future periods as a result of or arising from such
termination or expiration.

                                   ARTICLE XV
                                   ARBITRATION

         15.1 Litigation Rights Reserved. If any dispute arises with respect to
the unauthorized use of Proprietary Information by either Party or, Orphan
Medical's Trademark, Patent Rights, Know How, Manufacturing Know How, and
Improvements by Celltech, or with respect to acts or omissions of Celltech or
Orphan Medical relating to the Product which in the good faith discretion of
Orphan Medical or Celltech, as the case may be, negatively impact the safety of
the public, Orphan Medical or Celltech, as the case may be, may seek any
available equitable remedy from a court of competent jurisdiction.

         15.2 Arbitration. Except as provided in Sections 7.13 and 15.1, all
disputes arising between the parties in connection with this Agreement shall be
settled through friendly

                                       41
<PAGE>

consultations between the parties and if no agreement can be reached through
consultations, they shall be submitted to arbitration for settlement. The
arbitration shall take place in New York, New York, and be conducted by the
American Arbitration Association in accordance with the commercial arbitration
rules thereof (the "RULES") except as modified hereby. All necessary
determinations, including the arbitration decision, shall be made by a panel of
three arbitrators (the "PANEL"). Within ten (10) days after delivery of a notice
of arbitration, each of the two parties shall select one arbitrator as a member
of the Panel. The two parties shall select as the third member of the Panel an
independent arbitrator with no past or current business affiliations with either
party, and if the parties cannot agree on such independent arbitrator within ten
(10) days after delivery of a notice of arbitration, such independent arbitrator
shall be selected in accordance with the Rules. The Panel shall establish a
schedule of discovery and hearing such that the Panel's final written decision
shall be issued within one hundred and twenty (120) days after selection of the
independent arbitrator serving on the Panel. Each party must produce all
relevant non-privileged documents requested by the other party within thirty
(30) days after the request therefor. The Panel's decision must be in writing
and shall set forth the reasons therefor. Such decision shall be conclusive
determination of the matter and binding on the parties, shall have the effect of
an arbitration award, and shall not (to the extent permitted by applicable law)
be contested by any of them. The fees and expenses of an arbitrator selected by
a party shall be borne by such party. The fees and expenses of the third
independent arbitrator shall initially be borne equally by the parties, and
shall be allocated between the parties in accordance with the final decision of
the Panel, which decision shall allocate such fees between the parties as
determined by the Panel.

         15.3 Governing Law. This Agreement shall be governed by, and
interpreted and construed in accordance with, the laws of the State of New York,
U.S.A., excluding (i) its choice of law rules and (ii) the United Nations
Convention on the International Sale of Goods, provided that (x) enforcement and
operation of the Consignment Inventory arrangements in Section 7.3 shall be
governed by the laws of England, and (y) enforcement and operation of the
arbitration agreement contained in Section 15.2 hereof, and the enforcement of
any award rendered pursuant thereto, shall be governed by United States federal
law to the exclusion of State law.

                                  ARTICLE XVI
                                  FORCE MAJEURE

         16.1 Events of Force Majeure. Anything in this Agreement to the
contrary notwithstanding, neither party shall be liable or responsible for any
failure or delay in performance (excluding payment of sums owed hereunder) due
to causes affecting such party and, in the case of Orphan Medical, its
designated suppliers, and, in the case of Celltech, its Subdistributors,
Sublicensees and Third Party manufacturers, beyond the reasonable control of
such party, including, without limitation, any act of God; regulation or law of
any government or an agency thereof, excluding, however, if a Regulatory
Authority enjoins manufacture of the Product or otherwise closes the Product
manufacturing facilities due to Orphan Medical's failure to comply with cGMP or
any other breach by Orphan Medical of its obligations under this Agreement; war;
terrorism; insurrection or civil commotion; earthquake, tornado, fire, flood or
storm; epidemic; or failure of public utilities or common carriers. Such excuse
shall continue as long as the condition preventing the performance continues.
Upon cessation of such condition, such party shall promptly resume performance
hereunder.

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<PAGE>

         16.2 Notice. A party affected by an event of force majeure shall give
the other party prompt written notice of the occurrence of any event of force
majeure and the nature and duration thereof. An affected party shall use all
Commercially Reasonable Efforts to resume performance as quickly as possible and
to give the other party prompt written notice when it is again fully able to
perform such obligations. If such event of force majeure continues for more than
one hundred eighty (180) days, either party may terminate this Agreement by
giving ten (10) days written notice to the other party. If Celltech is the
affected party, such notice of resumption of performance shall state the
quantities of Product Orphan Medical needs to ship to enable Celltech to resume
performance of obligations.

         16.3 Hardship. In the event that, during the Term, any law or
government-enacted regulation or decree renders the performance by either party
of its respective obligations hereunder unduly onerous or infeasible to
implement, Celltech and Orphan Medical shall consult each other and show mutual
understanding with a view to making such adjustments as would appear to be
necessary and feasible. The party who considers that the change in regulation or
decree is unduly onerous or infeasible to implement, shall notify the other
within ninety (90) days of the change in regulation or decree, specifying the
specific date and change, an evaluation of the hardship which is or shall be
suffered and the proposal made by it to remedy that change if feasible. If the
parties fail to reach an agreement within ninety (90) days after the date of the
notice, either party shall at any time thereafter be entitled to terminate this
Agreement upon written notice only with respect to the country or countries
affected by such change in regulation or decree.

                                  ARTICLE XVII
                                  MISCELLANEOUS

         17.1 Notices. All notices to the parties shall be made at the following
addresses (or at such other address as shall be specified by it by like notice):

         To:  Orphan Medical, Inc.
              Attention:  Chief Executive Officer
              13911 Ridgedale Drive, Suite 250
              Minnetonka, Minnesota 55305
              United States
              Copy:  Director of International Business
              Fax:  952 540 9209

         To:  Celltech Pharmaceuticals Ltd.
              Attention: Chief Executive Officer
              208 Bath Road
              Slough, Berkshire SL1 3WE
              United Kingdom
              Copy:  Company Secretary
              Fax: 011 44 175 353 6632

              Notices permitted or required to be given hereunder shall be
deemed sufficient if given by (a) registered or certified airmail, postage
prepaid, return receipt requested, (b) private

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<PAGE>

courier service or (c) facsimile transmission with electronic confirmation of
receipt. Notices so given shall be effective (1) upon receipt by the party to
whom notice is given, or (2) on the tenth (10th) day following international
mailing, as may be the case, whichever occurs first.

         17.2 Waiver. No failure by either party to take any action or assert
any right hereunder shall be deemed to be a waiver of such right in the event of
the continuation or repetition of the circumstances giving rise to such right.

         17.3 Entire Agreement. This Agreement and the Schedules and Appendices
hereto constitute the entire agreement of the parties with respect to the
subject matter hereof, and supersede all previous agreements by and between the
parties as well as all proposals, oral or written, and all negotiations,
conversations or discussions heretofore had between the parties related to this
Agreement.

         17.4 Amendment. No modification or amendment of this Agreement shall be
binding unless in writing and signed by both parties.

         17.5 Headings. Article, section and paragraph headings used in this
Agreement are for convenience only, have no legal significance, and in no way
change the construction or meanings of the terms hereof.

         17.6 Relationship of the Parties. The parties shall be deemed
independent contractors of each other and, as such, they shall not be entitled
to any benefits applicable to employees of the other party. Nothing contained in
this Agreement shall be construed or implied to create an agency, partnership,
or employer and employee relationship between Orphan Medical and Celltech. At no
time shall one party make commitments or incur any charges or expenses for or in
the name of the other party except as specifically provided herein.

         17.7 Assignment. Neither party may assign this Agreement without the
prior written consent of the other party except that either Orphan Medical or
Celltech may assign this Agreement (a) to an Affiliate or (b) in connection with
a merger, stock sale, or the sale or transfer of all or substantially all of the
assets of such party or the division of such party manufacturing or marketing
the Product, as the case may be, provided, however, any permitted assignee shall
assume all obligations of its assignor under this Agreement and in the case of
clause (a), the assigning party shall remain primarily liable for the
performance of such Affiliate. Any purported assignment in violation of the
foregoing sentence shall be null and void. No assignment shall relieve either
party of responsibility for the performance of any accrued obligation under this
Agreement. Subject to the foregoing, this Agreement shall be binding upon and
inure to the benefit of the permitted successors or permitted assigns of
Celltech and Orphan Medical, respectively.

         17.8 Severability. If any term or condition of this Agreement is found
by a court of competent jurisdiction to violate the provisions of any applicable
statute, law or regulation, the remainder of this Agreement shall remain in full
force and effect. The parties shall then negotiate in good faith to modify this
Agreement, to the extent necessary to make the affected term or condition of
this Agreement valid and enforceable, having full regard for the original intent
of the parties.

                                       44
<PAGE>

         17.9 Publicity. This Agreement is confidential and neither party shall
issue press releases or engage in other types of publicity of any nature
(whether written or oral) dealing with the existence or details of this
Agreement without the other party's prior written approval, which approval shall
not be unreasonably withheld; provided that, approval of such disclosure shall
be deemed to be given to the extent such disclosure is required to comply with
governmental rules, regulations or requirements. In such event, the disclosing
party shall furnish a copy of such disclosure to the other party.

         17.10 Counterparts. This Agreement may be executed in one or more
counterparts, each of which shall be deemed to be an original, and all of which
together shall constitute one and the same Agreement. This Agreement may be
executed and delivered via facsimile transmission with the same force and effect
as if it were executed and delivered in writing. In making proof of this
Agreement, it shall not be necessary to produce or account for more than one
fully executed counterpart.

         17.11 LIMITATION OF DAMAGES. NEITHER ORPHAN MEDICAL NOR CELLTECH SHALL
HAVE ANY LIABILITY OF ANY KIND TO THE OTHER PARTY FOR ANY SPECIAL, INDIRECT,
INCIDENTAL OR CONSEQUENTIAL LOSSES OR DAMAGES, EVEN IF ORPHAN MEDICAL OR
CELLTECH, AS THE CASE MAY BE, SHALL HAVE BEEN ADVISED OF THE POSSIBILITY OF SUCH
POTENTIAL LOSS OR DAMAGE BY THE OTHER PARTY. FOR PURPOSES OF THE LIMITATION OF
LIABILITY IN THE IMMEDIATELY PRECEDING SENTENCE, (i) LEGAL FEES AND EXPENSES
THAT ARE RECOVERABLE AS PROVIDED IN ARTICLE IX SHALL NOT BE CONSIDERED INDIRECT
DAMAGES, (ii) INDIRECT DAMAGES PAYABLE BY AN INDEMNIFIED PARTY TO A THIRD PARTY
THAT WOULD BE RECOVERABLE UNDER THE INDEMNITY PROVISIONS IN ARTICLE IX BUT FOR
SUCH LIMITATION OF LIABILITY SHALL BE RECOVERABLE NOTWITHSTANDING SAID
LIMITATION OF LIABILITY AND (III) LOST PROFITS SHALL NOT BE DEEMED TO BE
SPECIAL, INCIDENTAL OR CONSEQUENTIAL DAMAGES EXCEPT IN RESPECT OF FUTURE PERIODS
FOLLOWING A TERMINATION OF THIS AGREEMENT IN ACCORDANCE WITH THE TERMS HEREOF.

                                       45
<PAGE>

                  IN WITNESS WHEREOF, the parties hereto have executed this
Agreement by their respective duly authorized representatives as of the
Effective Date.

                                                   CELLTECH PHARMACEUTICALS LTD.

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

                                                   ORPHAN MEDICAL, INC.

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

                                       46
<PAGE>

                                   APPENDIX A

                                    TERRITORY

MAJOR EUROPEAN COUNTRIES                                MINOR EUROPEAN COUNTRIES

France                                                  Austria
Germany                                                 Belgium
Italy                                                   Czech Republic
Spain                                                   Denmark
United Kingdom of Great Britain and Northern Ireland    Estonia
                                                        Finland
                                                        Greece
                                                        Hungary
                                                        Iceland
                                                        Ireland
                                                        Latvia
                                                        Lithuania
                                                        Luxemburg
                                                        Malta
                                                        Netherlands
                                                        Norway
                                                        Poland
                                                        Portugal
                                                        Slovak Republic
                                                        Slovenia
                                                        Sweden
                                                        Switzerland

OPTION COUNTRIES

Turkey

                                       A-1
<PAGE>

                                   APPENDIX B

                                    TRADEMARK

Xyrem(R)

European Community Trademark                     Reg. No.: 957712
                                                 Registered: 10 March 2000

Norway                                           Reg. No.: 217395
                                                 Registered: 23 January 2003

Iceland                                          Reg. No.: 679/2002
                                                 Registered: 31 July 2002

Switzerland                                      Reg. No.: 503.859
                                                 Registered: 9 October 2002

Czech Republic                                   Reg. No.: 251135
                                                 Registered: 27 January 2003

Slovak Republic                                  Application No.:  POZ 1676-2002
                                                 Registered: Pending

Poland                                           Appl. No.:  Z-251131
                                                 Registered: Pending

Hungary                                          Appl. No.: M 02 02667
                                                 Registered: Pending

                                  PATENT RIGHTS

<TABLE>
<CAPTION>
Country           Stage             Serial #         Date Filed        Patent #         Issue Date
--------------------------------------------------------------------------------------------------
<S>               <C>               <C>              <C>               <C>              <C>
European          Granted           99964320.8       12/22/99          1140061          5/2/03
Austria           Granted           99964320.8       12/22/99          1140061          5/2/03
Belguim           Granted           99964320.8       12/22/99          1140061          5/2/03
Denmark           Granted           99964320.8       12/22/99          1140061          5/2/03
Finland           Granted           99964320.8       12/22/99          1140061          5/2/03
France            Granted           99964320.8       12/22/99          1140061          5/2/03
Germany           Granted           99964320.8       12/22/99          69907508.408     5/2/03
Ireland           Granted           99964320.8       12/22/99          1140061          5/2/03
Italy             Granted           99964320.8       12/22/99          1140061          5/2/03
Netherlands       Granted           99964320.8       12/22/99          1140061          5/2/03
Spain             Granted           99964320.8       12/22/99          1140061          5/2/03
Sweden            Granted           99964320.8       12/22/99          1140061          5/2/03
Switzerland       Granted           99964320.8       12/22/99          1140061          5/2/03
United Kingdom    Granted           99964320.8       12/22/99          1140061          5/2/03
</TABLE>

                                       B-1
<PAGE>

                                   APPENDIX C

                             PRODUCT SPECIFICATIONS

Xyrem(R)(sodium oxybate) oral solution
EXPIRATION PERIOD:         48 months
STORAGE CONDITIONS:        15 - 30(Degree)C
RELEASE SPECIFICATIONS:

*

<TABLE>
<CAPTION>
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</TABLE>

APPROVAL SIGNATURES ON FILE:

         Regulatory Affairs

VERIFIED BY: ____________________________

                                       C-1
<PAGE>

                                   APPENDIX D
            STANDARD OPERATING PROCEDURE FOR EXCHANGE OF SAFETY DATA

         The Orphan Medical and Celltech individuals in charge of
pharmacovigilance shall follow the procedure outlined below in reporting adverse
experiences.

         1. Definitions. Definitions shall be those in use by the International
Conference on Harmonization (ICH) as may be amended by ICH from time to time.
Current definitions are:

                  1.1. Adverse Event ("AE") means any untoward medical
occurrence in a patient or clinical investigation subject administered a
pharmaceutical product and which does not necessarily have to have a causal
relationship with this treatment. An AE can therefore be any unfavorable and
unintended sign (including an abnormal laboratory finding), symptom, or disease
temporarily associated with the use of a medicinal (investigational) product,
whether or not related to the medicinal (investigational) product.

                  1.2. Serious Adverse Event ("SAE") means any untoward medical
occurrence that at any dose:

                           o        results in death,

                           o        is life-threatening,

                           o        requires inpatient hospitalization or
                                    prolongation of existing hospitalization,

                           o        results in persistent or significant
                                    disability/incapacity, or

                           o        results in a congenital anomaly/birth
                                    defect.

                  1.3. Adverse Drug Reaction ("ADR")

                           o        ADRs in the clinical setting refer to all
                                    noxious and unintended responses to a
                                    medicinal product (i.e., where the
                                    relationship between an adverse event and
                                    product can not be ruled out) related to any
                                    doses.

                           o        ADRs regarding marketed medicinal products
                                    shall refer to a response to a drug which is
                                    noxious and unintended and which occurs at
                                    doses normally used in man for prophylaxis,
                                    diagnosis, or therapy of disease or for
                                    modification of physiological function.

                  1.4. Serious Adverse Drug Reaction ("SADR") means an ADR
having the characteristics described in 1.2.

                  1.5. Unexpected Adverse Drug Reaction ("UADR") means an ADR,
the nature or severity of which is not consistent with the applicable product
information

                                       D-1
<PAGE>

(e.g., Investigator's Brochure for an unapproved investigational product or
package insert for an approved product.)

         2. Transmission of data between Orphan Medical and Celltech.

                  2.1. In the context of clinical trials:

                  2.1.1. All the SAEs related (expected and unexpected) to the
drug as assessed by investigators shall be forwarded on a quarterly basis under
the form of tabulated summary in English. Such summary shall bear at least the
following information: patient's ID number, protocol identification,
Investigator Center, type of serious event, symptomatology or pathology
observed, notified SAE. These clinical or biological manifestations shall be
named according to the dictionary in use by each party (e.g. MeDRA or WHO).

                  2.1.2. Each party, upon request, may receive available
additional or follow-up data from the other party.

                  2.2. In the context of post-marketing surveillance:

                  2.2.1. In the case of SAEs, the parties shall exchange data
within five (5) days of becoming aware of such SAE. In the case of SADRs and
UADRs, the parties shall exchange data within ten (10) days after becoming aware
of such SADR or UADR. In the case of any other AE or ADR the parties shall
exchange data within thirty (30) days of becoming aware of such AE or ADR.

                  2.3. All information between the parties shall be sent using
the standard reporting format for Health Authorities in force in the respective
countries concerned.

                                       D-2
<PAGE>

                                   APPENDIX E

                                QUALITY AGREEMENT

* [25 pages omitted]

-----

                                       E-1
<PAGE>

                                   APPENDIX F

                     CELLTECH FIRST COMMERCIAL YEAR FORECAST

*

                                       F-1
<PAGE>

                                   APPENDIX G

                    COMPONENTS OF STANDARD MANUFACTURING COST
                                       AND
                                 TRANSFER PRICE

* [14 pages omitted]

-----

                                       G-1
<PAGE>

                                   APPENDIX H

                              REGULATORY ASSISTANCE

         1.       Marketing Authorizations and Registrations

         In connection with Celltech's acquisition of the Marketing
Authorizations and Registrations and in addition to Orphan Medical's obligations
set forth elsewhere in this Agreement, Orphan Medical will, at its own cost and
expense (but subject to the limitations set forth in Section 3.2), take the
following actions:

                  A.       Promptly provide Celltech with copies of the NDA(s)
                           and other relevant Know How and documentation
                           currently in Orphan Medical's possession;

                  B.       On Celltech's reasonable request, provide reasonable
                           assistance in reviewing Product clinical studies; and

                  C.       Promptly review and comment upon, as necessary, all
                           applications for Marketing Authorizations and
                           supporting documentation that Celltech shall submit
                           to Orphan Medical for review prior to filing with the
                           appropriate Regulatory Authorities in the Territory.

         2.       Training, Sales and Technical Literature.

         In addition to the materials that Orphan Medical is to provide Celltech
pursuant to Section 6.5 of this Agreement, Orphan Medical shall also provide to
Celltech in accordance with Section 6.5, the following materials:

                  A.       All training materials used by Orphan Medical during
                           the Term;

                  B.       Copies of all studies relating to the Product
                           conducted by or on behalf of Orphan Medical, and all
                           updates thereto;

                  C.       During each of the first three (3) years of the Term,
                           Orphan Medical, at its sole cost and expense, shall
                           provide five (5) eight (8) hour days of sales and
                           technical training to Celltech's employees, agents,
                           independent contractors, Subdistributors or
                           Sublicensees at the Celltech facility specified by
                           Celltech. Celltech and Orphan Medical shall use
                           Commercially Reasonable Efforts to coordinate
                           mutually convenient days for such training; provided,
                           however, if the parties cannot agree on a mutually
                           convenient time for Orphan Medical to provide such
                           services, Celltech shall designate the dates for such
                           training and notify Orphan Medical thereof at least
                           thirty (30) days prior to the first designated
                           training date.

                                       H-1
<PAGE>

                                   APPENDIX I

                             TRADEMARK USE STANDARDS

* [2 pages omitted]

-----

                                       I-1
<PAGE>

                               SCHEDULE 8.1(E)(II)
            PATENT RIGHTS, TRADEMARK AND OTHER INTELLECTUAL PROPERTY
                    RELATING TO THE PRODUCT IN THE TERRITORY

PATENT(1)

<TABLE>
<CAPTION>
Country              Stage            Serial #          Date Filed        Patent #          Issue Date
------------------------------------------------------------------------------------------------------
<S>                                   <C>               <C>   <C>         <C>               <C> <C>
European             Granted          99964320.8        12/22/99          1140061           5/2/03
Austria              Granted          99964320.8        12/22/99          1140061           5/2/03
Belgium              Granted          99964320.8        12/22/99          1140061           5/2/03
Denmark              Granted          99964320.8        12/22/99          1140061           5/2/03
Finland              Granted          99964320.8        12/22/99          1140061           5/2/03
France               Granted          99964320.8        12/22/99          1140061           5/2/03
Germany              Granted          99964320.8        12/22/99          69907508.408      5/2/03
Ireland              Granted          99964320.8        12/22/99          1140061           5/2/03
Italy                Granted          99964320.8        12/22/99          1140061           5/2/03
Netherlands          Granted          99964320.8        12/22/99          1140061           5/2/03
Spain                Granted          99964320.8        12/22/99          1140061           5/2/03
Sweden               Granted          99964320.8        12/22/99          1140061           5/2/03
Switzerland          Granted          99964320.8        12/22/99          1140061           5/2/03
United Kingdom       Granted          99964320.8        12/22/99          1140061           5/2/03
</TABLE>

TRADEMARK(1)

European Community Trademark            Reg. No.: 957712
                                        Registered: 10 March 2000

Norway                                  Reg. No.: 217395
                                        Registered: 23 January 2003

Iceland                                 Reg. No.: 679/2002
                                        Registered: 31 July 2002

Switzerland                             Reg. No.: 503.859
                                        Registered: 9 October 2002

Czech Republic                          Reg. No.: 251135
                                        Registered: 27 January 2003

Slovak Republic                         Application No.:  POZ 1676-2002
                                        Registered: Pending

Poland                                  Appl. No.:  Z-251131
                                        Registered: Pending

Hungary                                 Appl. No.: M 02 02667
                                        Registered: Pending
*
--------------------------------
(1) All are registered in the name of Orphan Medical Inc.

<PAGE>

                              SCHEDULE 8.1(E)(III)
                            INFRINGEMENT OR CONFLICT

None

<PAGE>

                               SCHEDULE 8.1(F)(I)
                                    CONTRACTS

*

                                       3
<PAGE>

                               SCHEDULE 8.1(F)(II)
                          DEFAULT, BREACH OR VIOLATION

None

<PAGE>

                               SCHEDULE 8.1(G)(I)
                                     CLAIMS

None

<PAGE>

                                 SCHEDULE 8.1(H)
                               REQUIRED APPROVALS

None

<PAGE>

                               SCHEDULE 8.1(E)(I)
                                    CONTRACTS

None

<PAGE>

                               SCHEDULE 8.1(E)(II)
                          DEFAULT, BREACH OR VIOLATIONS

None

<PAGE>

                               SCHEDULE 8.1(F)(I)
                                     CLAIMS

None

<PAGE>

                                 SCHEDULE 8.2(G)
                               REQUIRED APPROVALS

None

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00063-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00063-of-00352.parquet"}]]