Document:

<PAGE>

                                                                 Exhibit 10.1(b)

                         FORM OF ATHENA DIAGNOSTICS INC.

                                       and

                             ELAN MANAGEMENT LIMITED

                     AMENDED AND RESTATED SERVICES AGREEMENT

<PAGE>

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

2.   Provision of Services..................................................2

     2.1    Services........................................................2
     2.2    Standard of Services............................................2
     2.3    Pricing.........................................................2
     2.4    Payment.........................................................2
     2.5    Authority.......................................................3
     2.6    Independent Contractor..........................................3
     2.7    No Property Transferred.........................................3
     2.8    Other Agreements................................................3
     2.9    Financial Information; Audit....................................3
     2.10   Liability.......................................................4
     2.11   Force Majeure...................................................4

3.   Term of Agreement......................................................4

4.   Confidentiality........................................................5

5.   General................................................................6

     5.1    Assignment and Binding Effect...................................6
     5.2    Notices.........................................................7
     5.3    Law.............................................................7
     5.4    Submission to Jurisdiction......................................7
     5.5    Parties in Interest.............................................8
     5.6    Headings........................................................8
     5.7    Entire Agreement:  Amendment:  Severability.....................8
     5.8    Waiver and Compliance...........................................8
     5.9    Counterparts....................................................8

SCHEDULE I TO THE SERVICES AGREEMENT
  TAX AND LEGAL SERVICES....................................................1
  RISK MANAGEMENT SERVICES..................................................1
  401(k) PLAN...............................................................1

SCHEDULE II TO THE SERVICES AGREEMENT
  COSTING OF SERVICES.......................................................3
</TABLE>

                                      -i-

<PAGE>

                     AMENDED AND RESTATED SERVICES AGREEMENT

Amended and Restated Services Agreement (this "Agreement"), dated as of January
[ ], 2002, by and between Athena Diagnostics, Inc. ("Athena"), a Delaware
Corporation, and Elan Management Limited, a limited company, with its registered
office at Lincoln House, Lincoln Place, Dublin 2, Ireland (hereinafter referred
to as "Elan Management")

WHEREAS, Athena obtains various corporate, administrative and other services
from Elan Management, pursuant to a Management Services Agreement dated as of
May 18, 1999 between Athena and Elan Management (the "Old Agreement"); and

WHEREAS, Athena is considering an initial public offering of its common stock
("IPO"); and

WHEREAS, following the closing of the IPO, Athena desires to continue to obtain
certain services from Elan Management and or Affiliates of Elan Management
(together as such ("the Provider")) and the Provider desires to continue to
provide or have provided such services; and

WHEREAS, the parties hereto now desire to amend the Old Agreement as provided
herein in accordance with Section 5.7 of the Old Agreement.

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

1.   Definitions

     The following terms shall have the following meanings:

     "Affiliate"                shall mean, with respect to any
                                specified person, any other person
                                who directly or indirectly through
                                one or more intermediaries controls,
                                is controlled by or is under common
                                control with, such specified person;

     "Bills of Costs"           shall have the meaning provided in Clause 2.4.1;

     "Effective Date"           shall mean the closing date of the IPO; and

<PAGE>

                                      -2-

     "Services"                 shall mean the services listed on
                                Schedule I hereto as amended in
                                writing from time to time.

2.   Provision of Services

2.1  Services
     --------

     The Provider shall provide, or arrange for the provision, to Athena the
     Services listed on Schedule I hereof as the parties hereto shall agree may
     be reasonably necessary. The Provider may subcontract the performance of
     any of the Services to third parties; provided that in such event, the
     Provider shall remain responsible for ensuring that the Services are
     provided to the standard set forth in Clause 2.2 and, unless otherwise
     agreed, shall pay any such contractor for such services, subject to
     reimbursement by Athena pursuant to the terms of this Agreement.

2.2  Standard of Services
     --------------------

     The Provider undertakes to Athena that the Services to be provided
     hereunder will be performed in conformance with good commercial practice.

2.3  Pricing
     -------

     The Services to be provided or arranged for hereunder shall be provided for
     a quarterly fee equal to the Fully Allocated Cost of such Services (as more
     fully described in Schedule 2) plus a 5% mark-up based on such costs (the
     "Fee"').

     The price of any services provided by any party unrelated to the Provider
     shall be the invoiced cost of such service.

2.4  Payment
     -------

         2.4.1    On or before the last day of each quarter, the Provider shall
                  deliver to Athena a bill (a "Bill of Costs") in respect of the
                  Fee to be paid in connection with the provision of Services
                  during the immediately preceding quarter, specifying, in
                  reasonable detail, the components of Fully Allocated Cost, the
                  category of the Services and the mark-up charged where
                  applicable.

         2.4.2    As soon as practicable and, in any event, unless otherwise
                  agreed, within thirty days of receipt of a Bill of Costs,
                  Athena shall pay the Provider, in such manner and to such
                  account as the Provider may reasonably request, the amount of
                  the Fee shown by such Bill of Costs to be due to the Provider.

<PAGE>

                                      -3-

2.5      Authority
         ---------

         Athena hereby authorizes the Provider, or subcontractors performing
         Services in accordance with this Agreement, to do all such things in
         the name, or for the account, of Athena as may be necessary or
         desirable for, or incidental to, the performance of the Services
         hereunder; provided, however, that, for the avoidance of doubt, the
         Provider shall not, and shall use its reasonable commercial efforts to
         ensure that such subcontractors do not, without the authority of
         Athena, enter into any negotiations or contracts that bind Athena in
         any way.

2.6      Independent Contractor
         ----------------------

         The Provider is an independent contractor and when its employees act
         under the terms of this Agreement, they shall be deemed at all times to
         be under the supervision and responsibility of the Provider. Nothing
         contained in this Agreement shall be construed by the parties hereto,
         or by any third party, as constituting any of the parties hereto as
         principal and agent, partners or joint venturers, or to be in any other
         trust, fiduciary or confidential relationship, nor shall anything
         herein render the Provider liable for the debts or obligations of
         Athena or Athena liable for the debts or obligations of the Provider,
         it being understood and agreed that the only relationship among the
         parties hereto under this Agreement is one of independent contractors.

2.7      No Property Transferred.
         -----------------------

         This Agreement solely relates to the provision of services. No tangible
         personal property of any party hereto shall be under the control or
         possession of, or transferred to, the other party as a result of this
         Agreement, except as expressly provided herein.

2.8      Other Agreements.
         ----------------

         From time to time, Athena may find it necessary or desirable either to
         enter into agreements covering services of the type contemplated by
         this Agreement to be provided by parties other than the Provider or to
         enter into other agreements covering functions to be performed by the
         Provider hereunder. Nothing in this Agreement shall be deemed to limit
         in any way the right of Athena to acquire such services from others or
         to enter into such other agreements.

2.9      Financial Information; Audit
         ----------------------------

         To the extent practicable, the Provider agrees to maintain such books,
         accounts and records as may be necessary to determine the rights of the
         Provider to payment of the

<PAGE>

                                      -4-

         Fee hereunder and to allow Athena reasonable access during normal
         business hours to such books, accounts and records.

2.10     Liability
         ---------

         The Provider shall not have any liability whatsover to Athena for any
         error, act or omission in connection with provision of services to be
         rendered hereunder unless any such error, act or omission arises out of
         the Provider's gross negligence or willful misconduct.

2.11     Force Majeure
         -------------

         Neither the Provider nor Athena shall be liable to the other on account
         of any failure to perform or on account of any delay in performance of
         any obligation under this Agreement if and to the extent that such
         failure or delay shall be due to a cause beyond the control of the
         relevant party or, in the case of the Provider, the Provider's
         subcontractors, if any, and which, by the exercise of reasonable
         diligence and care, such party or subcontractor, as the case may be,
         could not reasonably have been expected to avoid.

3.       Term of Agreement

3.1      The term of this Agreement shall commence upon the date of closing of
         the IPO and shall continue in full force and effect for a period ending
         nine months from the date hereof (the "Initial Term"). This Agreement
         will automatically be renewed for successive six-month periods
         beginning on the first day following the Initial Term and every
         anniversary thereof (each, a "Renewal Date") unless and until either
         party hereto gives written notice not less than sixty (60) days, prior
         to any Renewal Date, that it wishes to terminate this Agreement or any
         portion thereof as of such Renewal Date, in which case this Agreement
         or such portion thereof will terminate on such Renewal Date.

3.2      The Provider shall be able to terminate this Agreement or any portion
         thereof upon sixty (60) days prior written notice if Elan
         Pharmaceuticals, Inc. (an indirect, wholly owned subsidiary or Elan
         Corporation, plc, a corporation that also indirectly wholly owns Elan
         Management) or one of its Affiliates ceases to beneficially own at
         least 51% of the outstanding voting stock of Athena.

3.3      If either the Provider or Athena fails to pay or commits another
         material breach of the terms and conditions of this Agreement, and
         fails to remedy the same (where such breach or failure is capable of
         remedy) within thirty (30) days, in the case of a breach based upon the
         failure to pay money owed hereunder, and in all other cases, within

<PAGE>

                                      -5-

         ninety (90) days from the date of notice given by the party who has
         suffered the nonpayment or other breach requiring remedy, then such
         party may terminate this Agreement.

3.4      Upon termination of this Agreement:

         3.4.1    unless termination of this Agreement is the result of a breach
                  by a party hereto, none of the parties shall have any
                  liability resulting from such termination;

         3.4.2    the provisions of Clause 4, "Confidentiality", herein shall
                  remain effective and binding on each Party hereto; and

         3.4.3    no liability shall attach to any party for loss of goodwill or
                  consequential damages, including loss of profit.

4.       Confidentiality

4.1      Protection of Confidential Information. Each of the Provider and Athena
         --------------------------------------
         understands and agrees that in the performance of this Agreement, it
         may have access to private or confidential information of the other
         parties, including, without limitation, financial information, business
         plans, technical information and identities of customers and clients,
         that is designated as confidential by the disclosing party in writing
         or otherwise prior to or at the time it is disclosed to the other party
         or parties or that, based upon the nature of the information or the
         circumstances surrounding its disclosure, ought to be treated as
         confidential ("Confidential Information"). Each of the Provider and
         Athena agrees that the terms of this Agreement, including, without
         limitation, its financial terms, shall also be deemed Confidential
         Information. Each party hereto agrees that (i) all Confidential
         Information shall remain the exclusive property of the owner thereof,
         (ii) it shall maintain, and shall use all reasonable commercial efforts
         to cause its employees and agents to maintain, the confidentiality and
         secrecy of the Confidential Information and (iii) it shall not, and
         shall use all commercially reasonable efforts to ensure that its
         employees and agents do not, copy, publish, disclose to any other
         Person or use the Confidential Information, except pursuant to the
         terms of this Agreement. Each party agrees that Confidential
         Information shall not include information that is (i) in the public
         domain through no fault of the receiving party, (ii) rightfully
         received from a third party without any obligation of confidentiality
         or (iii) disclosed in response to a valid order by a court or other
         governmental agency or body or as otherwise required by law (provided
         that the party so disclosing has provided the other parties with prompt
         notice of such order or requirement in order to enable the other
         parties to seek an appropriate protective order or other remedy, to
         take

<PAGE>

                                      -6-

         steps to resist or narrow the scope of such order or requirement, or to
         waive compliance, in whole or in part, with the terms of this Section
         4.1.

4.2      Publicity. Each party hereto agrees that it shall not issue any press
         ---------
         release or make any other public disclosure relating to this Agreement,
         its terms, conditions or existence, including, but not limited to, any
         disclosure to its shareholders, customers or vendors, without the prior
         written consent of the other parties, which consent may not be
         unreasonably withheld. Each party agrees to give the other party the
         reasonable opportunity to review and reasonably revise the text of any
         such press release or public disclosure at least three business days
         prior to the issuance thereof (or as promptly as possible in the event
         three business days is not practicable).

4.3      Upon any termination of this Agreement, each party hereto will
         redeliver all original documents, work papers and other material of any
         other party, specifically requested to be returned by a party in
         writing, relating to the transactions contemplated hereby, whether so
         obtained before or after the execution hereof, to the party furnishing
         the same.

5.       General

5.1      Assignment and Binding Effect
         -----------------------------

         This Agreement shall be binding upon and inure to the benefit of the
         parties hereto and their respective successors and permitted assigns.
         Except as otherwise provided herein, no party hereto may assign this
         Agreement, or its rights and obligations hereunder, in whole or in
         part, without the other parties' prior written consent. Any attempt to
         assign this Agreement without such consent shall be void and of no
         effect. Notwithstanding the foregoing, each party hereto may assign
         this Agreement or any of its rights and obligations hereunder to any
         entity that acquires it by purchase of stock or by merger or otherwise,
         or by obtaining substantially all of its assets and Elan may assign
         this Agreement or any of its rights and obligations hereunder to any
         person, legal entity or other group who, directly or through one or
         more intermediaries controls, or is controlled by, or is under common
         control with, the Provider (other than Athena) (a "Permitted
         Assignee"); provided, however, that any such Permitted Assignee, by
         written agreement succeeds to all of the rights and is subject to all
         of the obligations of the assigning party under this Agreement. Upon
         presentment of such a written document to Athena, the assigning party's
         obligations hereunder shall be deemed novated.

<PAGE>

                                      -7-

5.2      Notices
         -------

         All notices, demands, requests and other communications required or
         permitted to be given hereunder shall be in writing and deemed duly
         given on the date delivered by hand, mailed by registered or certified
         mail, postage prepaid, or by overnight courier or by facsimile
         transmission, the receipt of which is confirmed by telephone, to the
         respective Parties at the following addresses (or at such other address
         for a Party as shall be specified by like notice):

          if to Athena:                         Athena Diagnostics Inc.
                                                Four Biotech Park
                                                377 Plantation Street
                                                Worcester
                                                MA 01605
                                                USA
                                                Attention of Company Secretary

          if to the Provider:                   Elan Management Limited
                                                Lincoln House
                                                Lincoln Place
                                                Dublin 2
                                                Attention of Company Secretary

5.3      Law
         ---

         This Agreement shall be governed by and construed in accordance with
         the internal laws of the State of New York applicable to agreements
         made and to be performed entirely within the State of New York, without
         regard to the conflicts of law principles of such state.

5.4      Submission to Jurisdiction
         --------------------------

         Each of the parties hereto irrevocably submits to the exclusive
         jurisdiction of (i) the Supreme Court of the State of New York, New
         York County, and (ii) the United States District Court for the Southern
         District of New York, for the purposes of any suit, action or other
         proceeding arising out of this Agreement or any transaction
         contemplated hereby. The parties hereto agree to commence any such
         action, suit or proceeding either in the United States District Court
         for the Southern District of New York or, if such suit, action or other
         proceeding may not be brought in such court for jurisdictional reasons,
         in the Supreme Court of the State of New York, New York County.

<PAGE>

                                      -8-

5.5      Parties in Interest
         -------------------

         Nothing in this Agreement, express or implied, is intended or shall be
         construed to confer upon or give to any Person other than the parties
         hereto any rights, benefits or remedies of any nature whatsoever under
         or by reason of this Agreement, all of which shall be for the sole and
         exclusive benefit of the Parties.

5.6      Headings
         --------

         The headings of the Clauses of this Agreement are inserted as a matter
         of convenience and for reference purposes only, and shall not affect in
         any way the meaning of interpretation of this Agreement.

5.7      Entire Agreement; Amendment; Severability
         -----------------------------------------

         5.7.1    This Agreement (including the Schedules hereto) represents the
                  entire understanding and agreement between the Parties with
                  respect to the subject matter hereof. This Agreement may be
                  amended, modified, supplemented, extended, terminated (except
                  as provided in Clause 3 hereof), discharged or changed only by
                  an agreement in writing that makes specific reference to this
                  Section and that is signed by each of the parties hereto.

         5.7.2    If and to the extent that any court of competent jurisdiction
                  holds any provision (or any part thereof) of this Agreement to
                  be invalid or unenforceable, such holding shall in no way
                  affect the validity of the remainder of this Agreement.

5.8      Waiver and Compliance
         ---------------------

         Any failure of Athena or the Provider to comply with any obligation,
         covenant, agreement or condition herein contained may be expressly
         waived, in writing only, by the party suffering such failure and such
         waiver shall be effective only in the specific instance and for the
         specific purpose for which made or given.

5.9      Counterparts
         ------------

This Agreement may be executed in counterparts, and by different parties on
separate or the same counterparts, each of which shall be deemed an original,
but all of which shall constitute one and the same instrument.

<PAGE>

                                      -9-

IN WITNESS WHEREOF, each of the parties has caused this Agreement to be duly
executed in its name and on its behalf, as of the date first above written.

ATHENA DIAGNOSTICS INC.

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

ELAN MANAGEMENT LIMITED

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

<PAGE>

                      SCHEDULE I TO THE SERVICES AGREEMENT

                             TAX AND LEGAL SERVICES

         (i) Tax Services. The Provider shall provide Athena with, or arrange
             ------------
the provision of, tax compliance, tax advice and other tax related services,
including: preparation and filing of all federal income tax returns; preparation
and filing of all state and local income tax returns and compliance with
applicable state and local tax laws, rules and regulations (except for
sales/use, property and payroll taxes); financial accounting for income taxes;
supervision of all federal, state and local tax audits, protests, administrative
proceedings and litigation; preparation and submission of all tax ruling
requests; and rendering and obtaining all tax opinions.

         (ii) Legal Services. The Provider shall provide Athena with, or arrange
              --------------
the provision of, legal assistance and advice with respect to, among other
things, general corporate matters, maintenance of corporate records, contracts,
intellectual property, labor and stock option matters arising out of option
issuances under Elan Corporation, plc plans; provided, however, that in the
event that either the Provider, on the one hand, or Athena, on the other hand,
notifies the other party of its reasonable belief that an actual or potential
conflict of interest exists between such parties with respect to a legal matter,
Athena shall, at its own expense, procure separate outside legal counsel to
represent it in connection with such matter.

                            RISK MANAGEMENT SERVICES

         (i) Description of Business Insurance Coverage extended by the Provider
             -------------------------------------------------------------------
to Athena. The Provider will provide Athena with, or arrange for the provision
---------
of, insurance coverages against certain risks and in amounts of coverage
consistent with current coverages or as otherwise may be mutually agreed upon.

         (ii) Extent of Coverages. The Provider and Athena shall in good faith
              -------------------
determine the amount of the above coverages that are appropriate for Athena
based on past practice.

                                   401(k) PLAN

         (i) Description of Employee Benefit Coverage. The Provider will provide
             ----------------------------------------
Athena employees with the ability to continue participating in the Elan
Pharmaceuticals, Inc. 401(k) Plan in accordance with the terms thereof and on
terms and conditions offered such other Elan participants; provided, however,
that at such time as Elan Corporation, plc or its Affiliates

<PAGE>

                                      -2-

cease to beneficially own at least 50% of the outstanding voting stock of
Athena, the Provider may terminate provision of such plan participation.

<PAGE>

                      SCHEDULE II TO THE SERVICES AGREEMENT

                               COSTING OF SERVICES
                               -------------------

The Fully Allocated Cost of the Services shall be calculated as follows:

1.       Direct Costs - the total of any costs by the Provider in respect of the
         ------------
         provision of the Services directly attributable to the business of
         Athena, plus

2.       Indirect Costs - an appropriate allocation of the costs incurred by the
         --------------
         Provider in respect of the provision of the Services where such costs
         are not attributable as direct costs but which are supportive of, and
         necessary in, the rendering of such services.<PAGE>

                                                                 Exhibit 10.1(c)

                     ---------------------------------------

                      FORM OF REGISTRATION RIGHTS AGREEMENT

                     ---------------------------------------

                                 by and between

                           Elan Pharmaceuticals, Inc.

                                       and

                            Athena Diagnostics, Inc.

                                   ----------

                           Dated as of January , 2002

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
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                                                                                                 Page
                                                                                                 ----
                                               ARTICLE I

                                              DEFINITIONS
<S>                                                                                                 <C>
SECTION 1.01.   Definitions..........................................................................1

                                               ARTICLE II

                                    EFFECTIVENESS OF AGREEMENT; TERM

SECTION 2.01.   Closing Date.........................................................................2
SECTION 2.02.   Term.................................................................................2

                                              ARTICLE III

                                          DEMAND REGISTRATION

SECTION 3.01.   Notice...............................................................................2
SECTION 3.02.   Registration Expenses................................................................4
SECTION 3.03.   Third Person Shares..................................................................4
SECTION 3.04.   Selection of Underwriters and Counsel................................................5
SECTION 3.05.   Non-exclusive........................................................................5

                                               ARTICLE IV

                                         PIGGYBACK REGISTRATION

SECTION 4.01.   Notice and Registration..............................................................5
SECTION 4.02.   Registration Expenses................................................................7
SECTION 4.03.   Non-exclusive........................................................................7

                                               ARTICLE V

                                        REGISTRATION PROCEDURES

SECTION 5.01.   Registration and Qualification.......................................................7
SECTION 5.02.   Underwriting.........................................................................9
SECTION 5.03.   Blackout Periods....................................................................10
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<PAGE>

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                                                                                                 ----
                                               ARTICLE VI

                                 PREPARATION; REASONABLE INVESTIGATION
<S>                                                                                                <C>
SECTION 6.01.   Preparation; Reasonable Investigation...............................................11

                                              ARTICLE VII

                                    INDEMNIFICATION AND CONTRIBUTION

SECTION 7.01.   Indemnification by Athena...........................................................11
SECTION 7.02.   Indemnification by Selling Holders..................................................12
SECTION 7.03.   Notice of Claims, Etc...............................................................13
SECTION 7.04.   Contribution........................................................................14

                                              ARTICLE VIII

                            BENEFITS AND TERMINATION OF REGISTRATION RIGHTS

SECTION 8.01.   Benefits and Termination of Registration Rights.....................................15

                                               ARTICLE IX

                                         REGISTRATION EXPENSES

SECTION 9.01.   Registration Expenses...............................................................16

                                               ARTICLE X

                                             MISCELLANEOUS

SECTION 10.01.  No Inconsistent Agreements..........................................................17
SECTION 10.02.  Successors and Assigns..............................................................17
SECTION 10.03.  Governing Law.......................................................................17
SECTION 10.04.  Jurisdiction........................................................................17
SECTION 10.05.  Notices.............................................................................18
SECTION 10.06.  Amendments and Modifications; Waivers...............................................18
SECTION 10.07.  Entire Agreement....................................................................19
SECTION 10.08.  No Third Party Beneficiaries........................................................19
SECTION 10.09.  Severability........................................................................19
SECTION 10.10.  Index and Headings..................................................................19
SECTION 10.11.  Counterparts........................................................................19
SECTION 10.12.  Recapitalizations, Etc..............................................................20
SECTION 10.13.  Specific Performance................................................................20
SECTION 10.14.  Survival............................................................................20
</TABLE>

                                      -ii-

<PAGE>

     THIS REGISTRATION RIGHTS AGREEMENT (this "Agreement") dated as of January ,
2002, between Elan Pharmaceuticals, Inc., a Delaware corporation ("Elan
Pharmaceuticals"), and Athena Diagnostics, Inc., a Delaware corporation
("Athena").

                                 R E C I T A L S

     WHEREAS, as of the date hereof there are an aggregate of [ ] shares of
common stock, par value $0.01 per share (the "Common Stock"), of Athena
outstanding, [ ] of which are owned by Elan Pharmaceuticals as of the date
hereof (the "Elan Shares");

     WHEREAS, Athena is currently contemplating conducting an initial public
offering (the "Initial Public Offering"), in which Elan will sell a portion of
the Elan Shares to the public; and

     WHEREAS, Athena and Elan Pharmaceuticals desire to provide for certain
registration and other rights with respect to the shares of Common Stock held by
Elan Pharmaceuticals and certain of its transferees.

     NOW, THEREFORE, in consideration of the mutual covenants and agreements set
forth herein and for other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, the parties hereby agree as
follows:

                                    ARTICLE I

                                   DEFINITIONS

     SECTION 1.01. Definitions. The terms defined in this Section 1.01 shall
                   -----------
have the following meanings for purposes of this Agreement.

          (a) "Business Day" means any day that is not a Saturday, Sunday or a
     day on which commercial banks in New York City are required or permitted by
     law to be closed.

          (b) "December 2001 Purchase Agreement" means the stock purchase
     agreement dated as of December 19, 2001 among Athena, Elan Pharmaceuticals,

<PAGE>

     Goldman Sachs International, Palladin Opportunity Fund, LLC, Palladin
     Overseas Fund Ltd., Palladin Partners I, L.P., Halifax Fund, L.P., HBK
     Master Fund, L.P. and St. Thomas Holdings Inc.

          (c) "Permitted Transferees" means any transferee, whether direct or
     indirect, of Elan Shares designated by Elan Pharmaceuticals in a written
     notice to Athena as provided for in Section 10.05. Such notice shall be
     signed by both Elan Pharmaceuticals and the Permitted Transferee so
     designated and shall include an undertaking by the Permitted Transferee to
     comply with the terms and conditions of this Agreement applicable to Elan
     Pharmaceuticals.

          (d) "Person" has the meaning set forth in Section 2(2) of the
     Securities Act.

                                   ARTICLE II

                        EFFECTIVENESS OF AGREEMENT; TERM

     SECTION 2.01. Closing Date. This Agreement shall take effect upon the date
                   ------------
of consummation of the Initial Public Offering (the "Closing Date").

     SECTION 2.02. Term. This Agreement shall remain in effect from the Closing
                   ----
Date until that date (the "Termination Date") that is five (5) years after the
first date on which Elan Pharmaceuticals ceases to own at least fifty percent
(50%) of the then outstanding shares of Common Stock; provided, however, that
this Agreement shall remain in effect until the completion of any registration
of shares pursuant to Article III or Article IV that commenced prior to the
Termination Date notwithstanding the occurrence of the Termination Date.

                                   ARTICLE III

                               DEMAND REGISTRATION

     SECTION 3.01. Notice. Upon the terms and subject to the conditions set
                   ------
forth herein, upon notice by Elan Pharmaceuticals or any Permitted Transferee
(Elan Pharmaceuticals and such Permitted Transferees being collectively referred
to herein as the "Holders") to Athena requesting that Athena effect the
registration under the Securities Act

<PAGE>

of an amount of Shares representing not less than 5% of all the then outstanding
Elan Shares (the "Registration Threshold"), which notice shall specify the
intended method or methods of disposition of such Elan Shares, Athena will
promptly give notice of the proposed registration to all other Holders and will
use its reasonable best efforts to effect (at the earliest possible date) the
registration under the Securities Act of such Elan Shares (and the Elan Shares
of any other Holders joining in such request as are specified in a notice
received by Athena within twenty (20) days after receipt of Athena's notice of
the proposed registration) for disposition in accordance with the intended
method or methods of disposition stated in such request; provided, however,
that:

          (a) if Athena shall have previously effected two registrations with
     respect to Elan Shares pursuant to this Article III within the previous
     twelve (12) months, Athena shall not be required to effect a registration
     pursuant to this Article III until twelve (12) months shall have elapsed
     from the effective date of the second most recent such registration;

          (b) if, upon receipt of a registration request pursuant to this
     Article III, Athena is advised in writing, with a copy to the Holders of
     Elan Shares proposed to be included in the offering (the "Selling
     Holders"), by a recognized independent investment banking firm selected by
     Athena and reasonably acceptable to the Selling Holders of a majority in
     number of Shares to be registered that, in such firm's opinion, a
     registration at the time and on the terms requested would materially and
     adversely affect any public offering of securities by Athena, other than in
     connection with employee benefit and similar plans (a "Company Offering"),
     that had been contemplated by Athena prior to the notice by the Holders
     requesting registration, Athena's obligation to effect a registration
     pursuant to this Article III shall be deferred until the earliest of (i)
     four (4) months after the completion of such Company Offering, (ii) the
     termination of any "blackout" period required by the underwriters, if any,
     to be applicable to the Holders in connection with such Company Offering,
     (iii) promptly after abandonment of such Company Offering and (iv) six (6)
     months after the date of notice by the Holders requesting registration;
     provided, however, that Athena shall not obtain any such deferral more than
     once in any eighteen (18) month period; and

          (c) if, while a registration request is pending pursuant to this
     Article III, Athena determines, in the good faith judgment of any executive
     officer of Athena, that the filing of a registration statement would
     require the disclosure of material information that Athena is not otherwise
     obligated to disclose, which Athena has a bona fide business purpose for
     preserving as confidential and the disclosure of which would have a
     material adverse effect on Athena, Athena's obligation to effect a
     registration

<PAGE>

     pursuant to this Article III shall be deferred until the earlier of (i) the
     date upon which such material information is disclosed to the public or
     ceases to be material and (ii) ninety (90) days after Athena makes such
     good faith determination; provided, however, that Athena shall not obtain
     any such deferral more than once in any eighteen (18) month period.

     SECTION 3.02. Registration Expenses. (a) All Registration Expenses (as
                   ---------------------
defined in Article IX) for the first three (3) (plus the number of Blackout
Termination Rights provided for by Section 5.03(b)) registrations requested
pursuant to this Article III shall be paid by Athena on behalf of the Selling
Holders; provided, however, that if any Other Securities (as defined below) are
registered for sale for the account of any Person other than the Selling Holders
pursuant to Section 3.03, each such other Person shall bear its pro rata share
of the Registration Expenses (or such other amount as shall be determined by
Athena and such Person) and Athena shall bear the remaining share of the
Registration Expenses.

     (b) Athena and the Selling Holders (each Selling Holder bearing its pro
rata share) shall each bear one half of the Registration Expenses for all
registrations effected pursuant to this Article III subsequent to those referred
to in Section 3.02(a); provided, however, that if any Other Securities are
registered for sale for the account of any Person other than the Selling Holders
pursuant to Section 3.03, each such other Person shall bear its pro rata share
of the Registration Expenses, and Athena and the Selling Holders (each Selling
Holder bearing its pro rata share) shall each bear one half of the remaining
share of the Registration Expenses.

     SECTION 3.03. Third Person Elan Shares. Athena shall have the right to
                   ------------------------
cause the registration of Other Securities for sale for the account of any
Person (other than the Selling Holders) in any registration of Elan Shares
requested pursuant to this Article III; provided, however, that Athena shall not
have the right to cause the registration of such Other Securities of such other
Persons if:

          (a) the Selling Holders are advised in writing (with a copy to Athena)
     by a recognized independent investment banking firm selected by the Selling
     Holders and reasonably acceptable to Athena that, in such firm's opinion,
     registration of such Other Securities would materially and adversely affect
     the offering and sale of Elan Shares then contemplated by the Selling
     Holders; or

          (b) the Selling Holders do not receive assurances reasonably
     satisfactory to them that such other Person for whose account such Other
     Securities are being registered will pay a pro rata share of the
     Registration Expenses pursuant to Section 3.02;

<PAGE>

     provided that for purposes of this clause (b), the guarantee by Athena to
     the Selling Holders of payment of such share of such Registration Expenses
     shall constitute satisfactory assurance to the Selling Holders.

     SECTION 3.04. Selection of Underwriters and Counsel. If any registration of
                   -------------------------------------
Elan Shares requested pursuant to this Article III is in the form of an
underwritten offering, the Selling Holders of a majority in number of Elan
Shares to be registered will select and obtain the services of the investment
banker or investment bankers and manager or managers that will administer the
offering and the counsel to such investment bankers and managers; provided that
such investment bankers, managers and counsel must be reasonably acceptable to
Athena.

     SECTION 3.05. Non-exclusive. No registration of Elan Shares effected
                   -------------
pursuant to this Article III shall relieve Athena of its obligation to effect a
registration of Elan Shares pursuant to Article IV.

                                   ARTICLE IV

                             PIGGYBACK REGISTRATION

     SECTION 4.01. Notice and Registration. If Athena proposes to register any
                   -----------------------
class of its equity securities ("Other Securities") for public sale under the
Securities Act (whether proposed to be offered for sale by Athena or any other
Person), on a form and in a manner that would permit registration of Elan Shares
for sale to the public under the Securities Act, it will give prompt notice to
the Holders of its intention to do so (but no later than twenty (20) Business
Days prior to the anticipated filing date), and upon the written request of any
or all of the Holders delivered to Athena within ten (10) Business Days after
the giving of any such notice (which request shall specify the number of Elan
Shares intended to be disposed of by each such Holder and the intended method of
disposition thereof), Athena will use its reasonable best efforts to effect, in
connection with the registration of the Other Securities, the registration under
the Securities Act of all Elan Shares that Athena has been so requested to
register by such Holders (that shall then become Selling Holders), to the extent
required to permit the disposition (in accordance with the intended method or
methods thereof as aforesaid) of the Elan Shares to be registered; provided,
however, that:

          (a) if at any time after giving such written notice of its intention
     to register any Other Securities and prior to the effective date of the
     registration statement filed in

<PAGE>

     connection with such registration, Athena shall determine for any reason
     not to register all of the Other Securities to be registered in such
     registration, Athena may, at its election, give written notice of such
     determination to the Selling Holders (or, if prior to delivery of the
     Holders' written request described above in this Section 4.01, the Holders)
     and thereupon Athena shall be relieved of its obligation to register such
     Shares in connection with the registration of such Other Securities (but
     not from its obligation to pay Registration Expenses to the extent incurred
     in connection therewith as provided in Section 4.02), without prejudice,
     however, to the rights (if any) of any Selling Holders immediately to
     request that such registration be effected as a registration under
     Article III;

          (b) if the managing underwriter of a registration pursuant to this
     Article IV advises Athena in writing (with a copy to the Selling Holders)
     that, in such underwriter's opinion, a registration of all Elan Shares that
     Athena has been requested to register by such Selling Holders at the time
     would materially and adversely affect the offering of the Other Securities,
     then (i) in the event that the size of the offering is the basis of such
     underwriter's opinion, the number of Elan Shares to be offered for the
     accounts of the Selling Holders shall be reduced pro rata on the basis of
     the number of Elan Shares requested by the Selling Holders to be offered to
     the extent necessary to reduce the total amount of securities to be
     included in such offering to the amount recommended by such underwriter;
     provided that if Other Securities (other than Other Securities that were
     sold pursuant to the December 2001 Purchase Agreement) are being offered
     for the account of other Persons as well as the Company, such reduction
     shall not represent a greater fraction of the number of Elan Shares
     intended to be offered by the Selling Holders than the fraction of similar
     reductions imposed on such other Persons over the amount of such Other
     Securities they intended to offer and (ii) in the event that the
     combination of securities to be offered is the basis of such underwriter's
     opinion, the Elan Shares to be included in such offering shall be reduced
     as described in clause (i) above (subject to the proviso in such clause)
     or, if such actions would, in the judgment of such underwriter, be
     insufficient to substantially eliminate the adverse effect that inclusion
     of the Elan Shares requested to be included would have on such offering,
     such Elan Shares will be excluded entirely from such offering; and

          (c) Athena shall not be required to effect any registration of Elan
     Shares under this Article IV incidental to the registration of any of its
     securities in connection with mergers, acquisitions, exchange offers,
     subscription offers, dividend reinvestment plans or stock option or other
     employee benefit plans.

<PAGE>

     SECTION 4.02. Registration Expenses. All Registration Expenses for
                   ---------------------
registrations requested pursuant to this Article IV shall be paid by Athena on
behalf of the Selling Holders; provided, however, that if any Other Securities
are registered for sale for the account of any Person other than the Selling
Holders, each other such Person shall bear its pro rata share of the
Registration Expenses (or such other amount as shall be determined by Athena and
such other Person) and Athena shall bear the remaining share of the Registration
Expenses.

     SECTION 4.03. Non-exclusive. No registration of Elan Shares effected under
                   -------------
this Article IV shall relieve Athena of its obligation to effect a registration
of Elan Shares pursuant to Article III.

                                    ARTICLE V

                             REGISTRATION PROCEDURES

     SECTION 5.01. Registration and Qualification. In connection with any
                   ------------------------------
registration of Elan Shares under the Securities Act as provided in Articles III
and IV, Athena will as promptly as is practicable:

          (a) subject to Section 4.01(a), prepare, file and use its reasonable
     best efforts to cause to become effective a registration statement under
     the Securities Act regarding Elan Shares to be offered;

          (b) prepare and file with the Securities and Exchange Commission (the
     "SEC") such amendments and supplements to such registration statement and
     the prospectus used in connection therewith as may be necessary to keep
     such registration statement effective and to comply with the provisions of
     the Securities Act with respect to the disposition of all Elan Shares
     covered by such registration statement until the earlier of (i) such time
     as all of such Elan Shares have been disposed of in accordance with the
     intended methods of disposition by the Selling Holders set forth in such
     registration statement or (ii) the expiration of nine (9) months after such
     registration statement becomes effective;

          (c) prior to filing a registration statement or the prospectus used in
     connection therewith, or any amendments or supplements thereto, furnish to
     the Selling Holders and one or more counsel selected by the Selling Holders
     of a majority of the number of Elan Shares covered by such registration
     statement, prospectus, amendment

<PAGE>

     or supplement copies of such documents proposed to be filed, which
     documents will be subject to the review and comment of such counsel;

          (d) furnish to the Selling Holders and to any underwriter of such Elan
     Shares such number of conformed copies of such registration statement and
     of each such amendment and supplement thereto (in each case including all
     exhibits), such number of copies of the prospectus included in such
     registration statement (including each preliminary prospectus and any
     summary prospectus), in conformity with the requirements of the Securities
     Act, such documents incorporated by reference in such registration
     statement or prospectus, and such other documents as the Selling Holders or
     such underwriter may reasonably request;

          (e) use its reasonable best efforts (i) to register or qualify all
     Elan Shares covered by such registration statement under such other
     securities or blue sky laws of such United States jurisdictions as the
     Selling Holders or any underwriter of such Elan Shares shall reasonably
     request, (ii) to keep such registration or qualification in effect for so
     long as such registration statement remains in effect and (iii) to do any
     and all other acts and things which may be necessary or advisable to enable
     the Selling Holders or any underwriter to consummate the disposition in
     such jurisdictions of the Elan Shares covered by such registration
     statement, except that Athena shall not for any such purpose be required to
     (A) qualify generally to do business as a foreign corporation in any
     jurisdiction where it is not so qualified, (B) subject itself to taxation
     in any such jurisdiction or (C) consent to general service of process in
     any such jurisdiction.

          (f) furnish to the Selling Holders and their underwriters, if any,
     addressed to them, (i) an opinion of counsel for Athena and (ii) a "cold
     comfort" letter signed by the independent public accountants who have
     certified Athena's financial statements included in such registration
     statement, each covering substantially the same matters with respect to
     such registration statement (and the prospectus included therein) and, in
     the case of such accountants' letter, with respect to events subsequent to
     the date of such financial statements, as are customarily covered in
     opinions of issuer's counsel and in accountants' letters delivered to
     underwriters in underwritten public offerings of securities, as the case
     may be (and dated the dates such opinions and comfort letters are
     customarily dated), and such other matters as the Selling Holders may
     reasonably request; and

          (g) immediately notify the Selling Holders at any time when a
     prospectus relating to a registration pursuant to Article III or IV is
     required to be delivered under the Securities Act of the happening of any
     event as a result of which the prospectus included

<PAGE>

     in such registration statement, as then in effect, includes an untrue
     statement of a material fact or omits to state any material fact required
     to be stated therein or necessary to make the statements therein, in light
     of the circumstances under which they were made, not misleading, and at the
     request of the Selling Holders prepare and furnish to the Selling Holders a
     reasonable number of copies of a supplement to or an amendment of such
     prospectus as may be necessary so that, as thereafter delivered to the
     purchasers of such Elan Shares, such prospectus shall not include an untrue
     statement of a material fact or omit to state a material fact required to
     be stated therein or necessary to make the statements therein, in the light
     of the circumstances under which they are made, not misleading.

     Athena may require the Selling Holders to furnish Athena with such
information regarding the Selling Holders and the distribution of the Elan
Shares being offered as Athena may from time to time reasonably request in
writing and as shall be required by law, the SEC or any securities exchange on
which any shares of Common Stock are then listed for trading in connection with
any registration.

     Each Selling Holder agrees that, upon receipt of any notice from Athena of
the happening of any event of the kind described in clause (g) of this Section
5.01, such Selling Holder will forthwith discontinue disposition of Elan Shares
pursuant to the registration statement covering such Elan Shares until such
Selling Holder's receipt of copies of a supplement to or an amendment of the
prospectus contemplated by clause (g) of this Section 5.01. In the event that
Athena shall give any such notice, the period set forth in clause (b)(ii) of
this Section 5.01 shall be extended for a number of days equal to the number of
days from and including the date of the giving of such notice pursuant to clause
(g) of this Section 5.01 to and including the date on which all Selling Holders
covered by such registration statement shall have received such supplement to or
amendment of the prospectus contemplated by clause (g) of this Section 5.01.
Each Selling Holder also agrees to notify Athena if any event relating to such
Selling Holder occurs which would require the preparation of a supplement to or
amendment of such prospectus so that such prospectus will not contain an untrue
statement of a material fact or omit to state a material fact required to be
stated therein or necessary to make the statements therein, in light of the
circumstances under which they were made, not misleading.

     SECTION 5.02. Underwriting. If requested by the underwriters for any
                   ------------
underwritten offering of Elan Shares pursuant to a registration effected under
Article III, Athena will enter into an underwriting agreement with such
underwriters for such offering, such agreement to contain such representations
and warranties by Athena and such other terms and provisions as are customarily
contained in underwriting agreements with respect to

<PAGE>

secondary distributions, including, without limitation, indemnities and
contribution to the effect and to the extent provided in Article VII and the
provisions of opinions of counsel and accountants' letters to the effect and to
the extent provided in Section 5.01(f). Athena may require that Elan Shares
requested to be registered pursuant to Article IV be included in such
underwriting on the same terms and conditions as shall be applicable to the
Other Securities being sold through underwriters under such registration. The
Selling Holders of Elan Shares to be distributed by the underwriters for any
offering of Elan Shares pursuant to a registration effected under Article III or
IV shall be parties to the underwriting agreement, and the representations and
warranties by, and the other agreements on the part of, Athena to and for the
benefit of the underwriters shall also be made to and for the benefit of such
Selling Holders. Such Selling Holders shall not be required to make any
representations or warranties to or agreements with Athena or such underwriters
other than representations, warranties or agreements regarding the passage of
good title to the Elan Shares to be sold, and their intended method of
distribution or any other representations or warranties required by law or
customarily given by selling securityholders in an underwritten public offering.

     SECTION 5.03. Blackout Periods. (a) At any time when a registration
                   ----------------
statement effected pursuant to Article III relating to Elan Shares is effective,
upon written notice (an "Information Blackout Notice") from Athena to the
Selling Holders that Athena determines, in the good faith judgment of any
executive officer of Athena, that the Selling Holders' sale of Elan Shares
pursuant to the registration statement would require disclosure of material
information that Athena is not otherwise obligated to disclose that Athena has a
bona fide business purpose for preserving as confidential and the disclosure of
which would have a material adverse effect on Athena (an "Information
Blackout"), the Selling Holders shall suspend sales of Elan Shares pursuant to
such registration statement until the earlier of (i) the date upon which such
material information is disclosed to the public or ceases to be material or (ii)
such time as Athena notifies the Selling Holders that sales pursuant to such
registration statement may be resumed (the number of days from such suspension
of sales of the Selling Holders until the day when such sales may be resumed
hereunder is hereinafter called a "Sales Blackout Period").

          (b) Any delivery by Athena of an Information Blackout Notice during
     the ninety (90) days immediately following the effectiveness of any
     registration statement effected pursuant to Article III shall give the
     Selling Holders the right, by notice to Athena within twenty (20) days
     after the end of the related Sales Blackout Period, to cancel such
     registration and obtain for the Holders one additional registration right
     (a "Blackout Termination Right") under Section 3.01(a).

<PAGE>

          (c) If there is an Information Blackout and the Selling Holders do not
     exercise the cancellation right, if any, pursuant to clause (b) of this
     Section 5.03, or, if such cancellation right is not available, the period
     set forth in Section 5.01(b)(ii) shall be extended for a number of days
     equal to the number of days in the Sales Blackout Period.

                                   ARTICLE VI

                      PREPARATION; REASONABLE INVESTIGATION

     SECTION 6.01. Preparation; Reasonable Investigation. In connection with the
                   -------------------------------------
preparation and filing of each registration statement registering Elan Shares
under the Securities Act, Athena will give the Selling Holders and the
underwriters, if any, and their respective counsel and accountants the
opportunity to participate in the preparation of such registration statement,
each prospectus included therein or filed with the SEC, and each supplement to
or amendment of such registration statement, and give each of them such
reasonable and customary access to its books and records and such opportunities
to discuss the business of Athena with its officers and the independent public
accountants who have certified its financial statements as shall be necessary,
in the opinion of the Selling Holders and such underwriters or their respective
counsel, to conduct a reasonable investigation within the meaning of the
Securities Act.

                                   ARTICLE VII

                        INDEMNIFICATION AND CONTRIBUTION

     SECTION 7.01. Indemnification by Athena. In the event of any registration
                   -------------------------
of any Elan Shares hereunder, Athena will, and hereby does, indemnify and hold
harmless each Selling Holder, each officer, director and agent of each Selling
Holder, each Person who participates as an underwriter in the offering or sale
of such Elan Shares, each officer, director and agent of each such underwriter,
and each Person, if any, who controls each such Selling Holder or any such
underwriter within the meaning of the Securities Act against any losses, claims,
damages or liabilities (collectively, "Losses"), joint or several, to which any
such Person may be subject under the Securities Act or otherwise insofar as such
Losses (or actions or proceedings in respect thereof) arise out of or are based
upon (i) any untrue statement or alleged untrue statement of any material fact
contained in any registration statement

<PAGE>

under which such Elan Shares were registered under the Securities Act, any
preliminary prospectus, final prospectus or summary prospectus included therein,
any amendment or supplement thereto, or any document incorporated by reference
therein, or (ii) any omission or alleged omission to state therein a material
fact required to be stated therein or necessary to make the statements therein
not misleading, and Athena will reimburse each such Person, as incurred, for any
legal or any other expenses reasonably incurred by such Person in connection
with investigating, defending against or appearing as a third party witness in
connection with any such Loss (or action or proceeding in respect thereof);
provided, however, that Athena shall not be liable in any such case to the
extent that any such Loss (or action or proceeding in respect thereof) arises
out of or is based upon an untrue statement or alleged untrue statement or
omission or alleged omission made in such registration statement, any such
preliminary prospectus, final prospectus or summary prospectus, any such
amendment or supplement, or any such document, in reliance upon and in
conformity with written information concerning such Selling Holder or such
underwriter furnished to Athena by such Selling Holder or such underwriter, as
the case may be, specifically for use therein. Such indemnity shall remain in
full force and effect regardless of any investigation made by or on behalf of
the Selling Holders, any such underwriter or any such officer, director, agent
or controlling Person, and shall survive the transfer of such Elan Shares being
offered in such offering by such Selling Holder.

     SECTION 7.02. Indemnification by Selling Holders. By virtue of exercising
                   ----------------------------------
its registration rights hereunder, each Selling Holder will, and hereby does,
severally and not jointly, indemnify and hold harmless Athena, each officer,
director and agent of Athena, and each Person (other than the Selling Holders),
if any, who controls Athena within the meaning of the Securities Act against any
Losses, joint or several, to which any such Person may be subject under the
Securities Act or otherwise insofar as such Losses (or actions or proceedings in
respect thereof) arise out of or are based upon (i) any untrue statement or
alleged untrue statement of any material fact contained in any registration
statement under which such Selling Holder's Elan Shares were registered, any
preliminary prospectus, final prospectus or summary prospectus included therein,
any amendment or supplement thereto, or any document incorporated by reference
therein, or (ii) any omission or alleged omission to state therein a material
fact required to be stated therein or necessary to make the statements therein
not misleading; provided, however, that (x) any such Loss (or action or
proceeding in respect thereof) arises out of or is based upon an untrue
statement or alleged untrue statement or omission or alleged omission made in
such registration statement, any such preliminary prospectus, final prospectus
or summary prospectus, any such amendment or supplement, or any such document,
in reliance upon and in conformity with written information concerning such
Selling Holder furnished to Athena in by such Selling Holder specifically for
use therein and (x) no Selling Holder shall be liable for any indemnification
under

<PAGE>

this Article VII in an aggregate amount that exceeds the total net proceeds
received by such Selling Holder from the offering of such Elan Shares, and such
Selling Holder will reimburse each such Person, as incurred, for any legal or
any other expenses reasonably incurred by such Person in connection with
investigating, defending against or appearing as a third party witness in
connection with any such Loss (or action or proceeding in respect thereof). Such
indemnity shall remain in full force and effect regardless of any investigation
made by or on behalf of Athena or any such officer, director, agent or
controlling Person and shall survive the transfer of such Elan Shares being
offered in such offering by such Selling Holder.

     SECTION 7.03. Notice of Claims, Etc. Promptly after receipt by an
                   ---------------------
indemnified party under this Article VII of notice of the commencement of any
action or proceeding for which such indemnified party is entitled to
indemnification under Section 7.01 or 7.02, such indemnified party will, if a
claim in respect thereof is to be made against an indemnifying party under this
Article VII, immediately give written notice to the indemnifying party of the
commencement thereof; provided, however, that the failure of any indemnified
party to give notice as provided herein (i) shall not relieve the indemnifying
party of its obligations under Section 7.01 or 7.02 unless and to the extent
that such failure results in the forfeiture by the indemnifying party of
substantial rights and defenses and (ii) shall not, in any event, relieve the
indemnifying party from any obligations to any indemnified party other than the
indemnification obligation referred to Sections 7.01 and 7.02. In case any such
action is brought against an indemnified party, and it notifies the indemnifying
party of the commencement thereof, the indemnifying party shall be entitled to
participate therein and, to the extent it may wish, jointly with any other
indemnifying party, to assume the defense thereof, with counsel reasonably
satisfactory to such indemnified party; provided, however, that if (i) the use
of counsel chosen by the indemnifying party to represent the indemnified party
would present such counsel with a conflict of interest, (ii) the defendants in
any such action shall include both the indemnified party and the indemnifying
party and the indemnified party shall have been advised by counsel that there
may be one or more legal defenses available to it and/or the indemnified parties
that are different from or additional to those available to the indemnifying
party, or (iii) the indemnifying party shall not have employed counsel
reasonably satisfactory to the indemnified party to represent the indemnified
party within a reasonable period of time after receipt by the indemnifying party
of notice of the institution of such action, then, in each such case, the
indemnifying party shall not have the right to direct the defense of such action
on behalf of such indemnified party or parties and such indemnified party or
parties shall have the right to select separate counsel to defend such action on
behalf of such indemnified party or parties. After notice from the indemnifying
party to such indemnified party of its election so to assume the defense thereof
and approval by such indemnified party of counsel appointed to defend such
action, the indemnifying party will not be liable to such indemnified party
under this Article VII for any legal or other expenses,

<PAGE>

other than reasonable costs of investigation, subsequently incurred by such
indemnified party in connection with the defense thereof unless (i) the
indemnified party shall have employed separate counsel in accordance with the
proviso to the immediately preceding sentence (it being understood, however,
that in connection with such action, the indemnifying party shall not be liable
for the expenses of more than one separate counsel (in addition to local
counsel) in any one action or separate but substantially similar actions in the
same jurisdiction arising out of the same general allegations or circumstances,
designated by such indemnified parties who are parties to such action or
actions) or (ii) the indemnifying party has authorized in writing the employment
of counsel for the indemnified party at the expense of the indemnifying party.
No indemnifying party will be liable under this Article VII for any settlement
of any claim or action effected without its prior written consent (which consent
shall not be unreasonably withheld). No indemnifying party shall, without the
prior written consent of the indemnified party, consent to the entry of any
judgment in, or effect any settlement or compromise of, any pending or
threatened proceeding, unless such settlement (i) includes an unconditional
written release of the indemnified parties from all liability on claims that are
the subject matter of such proceeding and (ii) does not include any statement as
to an admission of fault, culpability or failure to act by or on behalf of any
indemnified party.

     SECTION 7.04. Contribution. In circumstances in which the indemnity
                   ------------
agreement provided for in the preceding sections of this Article VII is
unavailable to, or insufficient to hold harmless, an indemnified party in
respect of any Losses (or actions or proceedings in respect thereof), each
indemnifying party, in order to provide for just and equitable contribution,
shall contribute to the amount paid or payable by such indemnified party as a
result of such Losses (or actions or proceedings in respect thereof) in such
proportion as is appropriate to reflect the relative fault of the indemnifying
party or parties on the one hand and the indemnified party on the other in
connection with the statements or omissions or alleged statements or omissions
that resulted in such Losses (or actions or proceedings in respect thereof). The
relative fault of the parties shall be determined by reference to, among other
things, whether the untrue or alleged untrue statement of a material fact or the
omission or alleged omission to state a material fact relates to information
supplied by Athena on the one hand or the Selling Holder on the other, the
parties' relative intent, knowledge, access to information and opportunity to
correct or prevent such statement or omission or alleged statement or omission,
and any other equitable considerations appropriate in the circumstances. No
Person guilty of fraudulent misrepresentation (within the meaning of Section
11(f) of the Securities Act) shall be entitled to contribution from any Person
who was not guilty of such fraudulent misrepresentation. Notwithstanding the
foregoing, the amount the Selling Holders shall be obligated to contribute
pursuant to this Section 7.04 shall be limited to an amount equal to the per
share public offering price (less any underwriting discount and

<PAGE>

commissions) multiplied by the number of Elan Shares sold by such Selling
Holders pursuant to the registration statement which gives rise to such
obligation to contribute (less the aggregate amount of any damages which the
Selling Holders have been required to pay in respect of such Loss (or actions or
proceedings in respect thereof) arising from the sale of such Elan Shares). In
addition, no Person shall be obligated to contribute hereunder any amounts in
payment for any settlement of any action or claim effected without such Person's
consent, which consent shall not be unreasonably withheld.

                                  ARTICLE VIII

                 BENEFITS AND TERMINATION OF REGISTRATION RIGHTS

     SECTION 8.01. Benefits and Termination of Registration Rights. The Holders
                   -----------------------------------------------
may jointly exercise the registration rights granted hereunder in such manner
and proportions as they shall agree among themselves. The registration rights
hereunder shall cease to apply to Elan Shares when:

          (a) a registration statement with respect to the sale of such Elan
     Shares shall have become effective under the Securities Act and such Elan
     Shares shall have been disposed of in accordance with such registration
     statement;

          (b) such Elan Shares shall have been sold to the public pursuant to
     Rule 144 under the Securities Act (or any successor provision);

          (c) such Elan Shares shall have been otherwise transferred, new
     certificates for them not bearing a legend restricting further transfer
     shall have been delivered by Athena, and subsequent public distribution of
     them shall not require registration or qualification of them under the
     Securities Act or any similar federal or state law then in force; or

          (d) such Elan Shares shall have ceased to be outstanding.

<PAGE>

                                   ARTICLE IX

                              REGISTRATION EXPENSES

     SECTION 9.01. Registration Expenses. As used in this Agreement, the
                   ---------------------
term "Registration Expenses" means all expenses incident to Athena's performance
of or compliance with the registration requirements set forth in this Agreement
including, without limitation, the following:

          (a) the fees, disbursements and expenses of Athena's counsel and
     accountants in connection with the registration of Elan Shares to be
     disposed of under the Securities Act;

          (b) all expenses in connection with the preparation, printing and
     filing of the registration statement (including any registration and filing
     fees), any preliminary prospectus, final prospectus or summary prospectus,
     any other offering document and amendments and supplements thereto and the
     mailing and delivering of copies thereof to the underwriters and dealers;

          (c) the cost of printing and producing any agreement(s) among
     underwriters, underwriting agreement(s), and blue sky or legal investment
     memoranda, any selling agreements and any amendments thereto or other
     documents in connection with the offering, sale or delivery of Elan Shares
     to be disposed of;

          (d) all expenses in connection with the qualification of Elan Shares
     to be disposed of for offering and sale under state securities laws,
     including the fees and disbursements of counsel for the underwriters in
     connection with such qualification and in connection with any blue sky and
     legal investment surveys;

          (e) the filing fees incident to securing any required review by the
     National Association of Securities Dealers, Inc. of the terms of the sale
     of Elan Shares to be disposed of;

          (f) the fees and expenses incurred in connection with the listing of
     the Elan Shares on any securities exchange on which any shares of the
     Common Stock are then listed;

          (g) the costs of preparing stock certificates; and

<PAGE>

          (h) the costs and charges of Athena's transfer agent and registrar.

     Registration Expenses shall not include underwriting discounts and
underwriters commissions attributable to the Elan Shares being registered for
sale on behalf of the Selling Holders, and the fees, disbursements and expenses
of the Selling Holders' counsel and accountants, which shall be paid by the
Selling Holders.

                                    ARTICLE X

                                  MISCELLANEOUS

     SECTION 10.01. No Inconsistent Agreements. Athena has not previously and
                    --------------------------
shall not on or after the date of this Agreement, enter into any agreement with
respect to its securities that violates or is inconsistent with the rights
expressly granted to the Holders in this Agreement.

     SECTION 10.02. Successors and Assigns. This Agreement shall inure to the
                    ----------------------
benefit of and shall be binding upon each of the parties hereto and their
respective successors and assigns. In the event that Elan Pharmaceuticals
assigns its rights to a Holder or Holders of only a portion of the Elan Shares,
then all references herein to Elan Pharmaceuticals shall also be deemed to refer
to such other Holders but in such event Elan Pharmaceuticals will have the sole
right to make decisions by and give notices for such Holder or Holders under
this Agreement; provided that if Elan Pharmaceuticals no longer owns any Elan
Shares, then all decisions and notices hereunder must be made by the Holders of
not less than a majority of the Elan Shares outstanding.

     SECTION 10.03. Governing Law. This Agreement shall be governed by and
                    -------------
construed in accordance with the internal laws of the State of New York
applicable to agreements made and to be performed entirely within the State of
New York, without regard to the conflicts of law principles of such State.

     SECTION 10.04. Jurisdiction. Each of the parties hereto irrevocably submits
                    ------------
to the exclusive jurisdiction of (i) the Supreme Court of the State of New York,
New York County, and (ii) the United States District Court for the Southern
District of New York, for the purposes of any suit, action or other proceeding
arising out of this Agreement or any transaction contemplated hereby. The
parties hereto agree to commence any such action, suit or proceeding either in
the United States District Court for the Southern District of New York

<PAGE>

or, if such suit, action or other proceeding may not be brought in such court
for jurisdictional reasons, in the Supreme Court of the State of New York, New
York County.

     SECTION 10.05. Notices. All notices or other communications required or
                    -------
permitted to be given hereunder shall be in writing and shall be delivered by
hand or sent, postage prepaid, by registered, certified or express mail or
reputable overnight courier service and shall be deemed given when so delivered
by hand, or if mailed, three (3) days after mailing (one (1) Business Day in the
case of express mail or overnight courier service), as follows:

         If to Elan Pharmaceuticals or any other Holder:

                  Elan Pharmaceuticals, Inc.
                  800 Gateway Boulevard
                  South San Francisco, California 94080
                  Attn:  General Counsel

         If to Athena:

                  Athena Diagnostics, Inc.
                  Four Biotech Park
                  377 Plantation Street
                  Worcester, MA 01605
                  Attention:  Chief Financial Officer

         In each case with a copy to:

                  Cahill Gordon & Reindel
                  80 Pine Street
                  New York, NY  10005
                  Attn:  Christopher T. Cox, Esq.

     SECTION 10.06. Amendments and Modifications; Waivers. This Agreement may be
                    -------------------------------------
amended or modified, and any of the terms, covenants or conditions hereof may be
waived, only by a written instrument executed by the parties hereto, or in the
case of a waiver, by the party waiving compliance. Except as otherwise
specifically provided herein, no delay on the part of any party hereto in
exercising any right, power or privilege hereunder shall operate as a waiver
thereof, nor shall any waiver on the part of any party

<PAGE>

hereto of any right, power or privilege hereunder operate as a waiver of any
other right, power or privilege hereunder nor shall any single or partial
exercise of any right, power or privilege hereunder preclude any other or
further exercise thereof or the exercise of any other right, power or privilege
hereunder.

     SECTION 10.07. Entire Agreement. This Agreement contains the entire
                    ----------------
agreement and understanding between the parties hereto with respect to the
subject matter hereof and supersedes all prior written or oral representations,
agreements or understandings relating to such subject matter. No party hereto
shall be liable or bound to any other party hereto in any manner by any
representations, warranties or covenants relating to such subject matter except
as specifically set forth herein.

     SECTION 10.08. No Third Party Beneficiaries. Except as provided in Article
                    ----------------------------
VII hereof, this Agreement is for the sole benefit of the parties hereto and
with respect to Athena, its respective successors and assigns, and with respect
to Elan Pharmaceuticals, any Permitted Transferees of the Elan Shares, and
nothing herein expressed or implied shall give or be construed to give to any
Person, other than the parties hereto and with respect to Athena, its respective
successors and assigns, and with respect to Elan Pharmaceuticals, any Permitted
Transferees of the Elan Shares, any legal or equitable rights hereunder.

     SECTION 10.09. Severability. If any provision in this Agreement or the
                    ------------
application of such provision to any Person or circumstance is deemed to be, or
becomes, invalid, illegal, void or unenforceable under any law that is
applicable hereto, (i) such provision will be deemed amended to conform to
applicable laws so as to be valid and enforceable or, if it cannot be so amended
without materially altering the intention of the parties hereto, it will be
deleted, with effect from the date of such agreement or such earlier date as the
parties hereto may agree, and (ii) the validity, legality and enforceability of
the remaining provisions of this Agreement or the application of such provisions
to any other Persons or circumstances shall not be impaired or affected in any
way.

     SECTION 10.10. Index and Headings. The table of contents and headings in
                    ------------------
this Agreement are for reference purposes only and shall not affect the meaning
or interpretation of this Agreement.

     SECTION 10.11. Counterparts. This Agreement may be executed in one or more
                    ------------
counterparts, each of which for all purposes shall be deemed to be an original
and all of which together shall be considered one and the same agreement, and
shall become effective when one or more such counterparts have been signed by
each of the parties hereto and delivered to each of the other parties hereto.

<PAGE>

     SECTION 10.12. Recapitalizations, Etc. In the event that any capital stock
                    ----------------------
or other securities are issued in respect of, in exchange for, or in
substitution of, any Elan Shares by reason of any reorganization,
recapitalization, reclassification, merger, consolidation, spin-off, partial or
complete liquidation, stock dividend, split-up, sale of assets, distribution to
stockholders or combination of the Elan Shares or any other change in Athena's
capital structure, appropriate adjustments shall be made in this Agreement so as
to fairly and equitably preserve, as far as practicable, the original rights and
obligations of the parties hereto under this Agreement.

     SECTION 10.13. Specific Performance. The parties hereto agree that the Elan
                    --------------------
Shares cannot be purchased or sold in the open market and that, for these
reasons, among others, the parties will be irreparably damaged in the event that
this Agreement is not specifically enforceable. Accordingly, in the event of any
controversy concerning the Elan Shares which is the subject of this Agreement,
or any right or obligation to register such securities, such right or obligation
shall be enforceable in a court of equity by specific performance. The rights
granted in this Section 10.12 shall be cumulative and not exclusive, and shall
be in addition to any and all other rights which the parties hereto may have
hereunder, at law or in equity.

     SECTION 10.14. Survival. Notwithstanding other provisions of this
                    --------
Agreement, this Article X and Sections 2.02 and 3.02 and Article VII shall
survive termination of this Agreement, whether or not such termination arises
out of a material breach by the non-terminating party.

<PAGE>

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

                                   ELAN PHARMACEUTICALS, INC.

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

                                   ATHENA DIAGNOSTICS, INC.

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

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