Document:

EXHIBIT 10.1

                               SUBLEASE AGREEMENT

THIS SUBLEASE AGREEMENT is entered into as of July 12, 2000, by and between
Creative Publishing international, Inc. a Minnesota corporation ("CPi") and
Lightning Rod Software, Inc., a Minnesota corporation ("Subtenant").

                                    RECITALS:

Creative Publishing international, Inc. is the "Tenant" of certain premises
located at 5900 Green Oak Drive, Minnetonka, Minnesota, consisting of
approximately 60,000 square feet located in a building of approximately 60,000
square feet (the "Entire Premises"), pursuant to that certain lease dated June
1, 1997 and amended from time to time (the "Prime Lease"), whereby Green Oak
Associates is the "Lessor" ("Prime Landlord"). A copy of the Prime Lease and all
amendments is attached hereto as Exhibit A.

Subtenant desires to sublease a portion (the "Premises") of the Entire Premises
from CPi and CPi is willing to sublet the Premises to Subtenant, pursuant to the
terms of this Sublease.

NOW THEREFORE, in consideration of the foregoing and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties agree as follows:

1.       Sublease. CPi hereby subleases the Premises to Subtenant. The Premises
         consists of the entire first floor of approximately 20,000 square feet,
         less that portion of the first floor cross-hatched on the floor plan
         attached as Exhibit B, which shall be used as a common entrance area by
         both parties. This Sublease also permits use of the Entire Premises
         parking lot, as limited by Section 17 hereof.
<PAGE>

2.       Prime Lease.

                  (a) This Sublease is subject to the terms and conditions of
         the Prime Lease. Subtenant shall keep and perform promptly each of the
         terms, covenants, conditions, provisions and agreements of the Tenant
         under the Prime Lease insofar as they are applicable to the use and
         occupancy of the Premises. Notwithstanding anything in this Sublease to
         the contrary, the only services or rights to which Subtenant is
         entitled pursuant to this Sublease are those to which CPi is entitled
         under the Prime Lease, and for all such services and rights, Subtenant
         will look to Prime Landlord, provided, however, that Subtenant will
         provide CPi with (a) a copy of any written notice Subtenant provides to
         Prime Landlord or which Prime Landlord provides to Subtenant pertaining
         to Subtenants use or occupancy of the Premises, and (b) notice of any
         material unwritten communication to or with prime Landlord pertaining
         to Subtenants use or occupancy of the Premises, each of which shall be
         provided no later than 24 hours following such notice to communication
         to or with Prime Landlord. Subtenant represents that it has read and is
         familiar with the terms of the Prime Lease.

            (b) The following provisions of the Prime Lease are
         incorporated herein and made a part of this Lease. Except as
         specifically mentioned, for purposes of incorporation herein,
         references in the indicated provisions to Lessor shall refer to CPi,
         references to the Tenant shall refer to the Subtenant, and references
         to the Leased Premises shall refer to the Premises.

                  (i)      Article VI, Section 1.

                  (ii)     Article VIII, Section 2, except that wherever consent
                           is required, the consent of both Prime Landlord and
                           CPi must be obtained.

                  (iii)    Article IX, Section 1, except the last sentence
                           thereof and except that wherever consent is required,
                           the consent of both Prime Landlord and CPi must be
                           obtained, and the date "April 5, 1994," shall be
                           amended to read "the Commencement Date of this
                           Sublease.".

                   (iv)    Article X, Section 3.

                    (v)    Article XIII, Section 1, except that references to
                           Lessor shall include both the Prime Landlord and CPi,
                           and without limiting the generality of the language
                           contained in Article XIII, CPi shall at all times
                           have access to the boiler room located in the
                           Premises and designated as such on Exhibit B.

                   (vi)    Article XIV, except that Subtenant's indemnity shall
                           extend to both Prime Landlord and CPi.

                  (vii)    Article XV, except that Subtenant's waiver shall
                           benefit both Prime Landlord and CPi.

                 (viii)    Article XX.

                   (ix)    Article XXI.

                    (x)    Article XXII.

<PAGE>
                   (xi)    Article XXIII.

                  (xii)    Article XXX.

                 (xiii)    Article XXXI.

                  (xiv)    Article XXXIII.

                   (xv)    Article XXXIV.

3.       Term. The term of the Sublease ("Term") shall commence as of August 1,
         2000 ("Commencement Date") and terminate as of May 31, 2002. Rent shall
         commence to accrue October 1, 2000. Notwithstanding the foregoing, if
         the Prime Lease is earlier terminated for any reason, this Sublease
         shall terminate as of the termination of the Prime Lease.

4.       Base Rent. Subtenant shall pay base rent to CPi in the monthly amount
         of $18,750.00 through May 2001, and $19,583.34 from June 1, 2001
         through May 31, 2002. Base Rent shall be due and payable in advance on
         the twenty-fifth (25th) day of each month for the following month
         during the Term ("Base Rent"), commencing on September 25, 2000 for the
         month of October, 2000. Provided Subtenant makes prompt payment of Base
         Rent to CPi as required pursuant to this Section 4, CPi shall pay Prime
         Lease Base Rent to Prime Landlord.

5.       Additional Rent. Subtenant shall also pay 33% ("Subtenant's
         Proportionate Share") of (a) all amounts owing by CPi to Prime Landlord
         under the Prime Lease as Additional Rent; and (b) all Operating
         Expenses, as defined in Article V. Section 1(b) of the Prime Lease
         (substituting "CPi" for "Lessor" therein) which are paid for by CPi to
         parties other than Prime Landlord. Specifically and not by way of
         limitation, Subtenant shall pay to CPi Subtenant's Proportionate Share
         of Monthly Operating Adjustment as described in Article III, Section 1
         of the Prime Lease. Subtenant's Proportionate Share of Monthly
         Operating Adjustment is currently approximately $10,000. Subtenant's
         Proportionate Share of Monthly Operating Adjustment is due and payable
         on the twenty-fifth (25th) day of each month for the following month
         during the Term, commencing on September 25, 2000 for the month of
         October, 2000. Provided Subtenant makes prompt payment of Subtenant's
         Proportionate Share of Monthly Operating Adjustment to CPi as required
         pursuant to this Section 5, CPi shall pay the Monthly Operating
         Adjustment to Prime Landlord as and when due. Subtenant acknowledges
         that such Monthly Operating Adjustment is subject to adjustment
         pursuant to the Prime Lease and Subtenant shall pay to CPi Subtenant's
         Proportionate Share billed by Prime Landlord for Operating Cost and Tax
         Cost during the Term of this Sublease. After the determination of
         Actual Operating Costs and Actual Tax Costs as provided in Article III,
         Section 2 of the Prime Lease, Subtenant shall pay Subtenant's
         Proportionate Share of any additional payment due from CPi to Prime
         Landlord and shall be entitled to a reimbursement of Subtenant's

<PAGE>

         Proportionate Share of any reimbursement from Prime Landlord to CPi
         (proportionately reduced in either case for any year during which this
         Sublease is in effect for less than the full year).

6.       Utilities. Subtenant shall pay Subtenant's Proportionate Share of all
         utilities for the Premises to CPi on the 25th of every month. CPi shall
         pay directly to the provider of any utility(ies) all charges for the
         same, on or before the date such payment(s) are due.

7.       Use. The Premises shall be used only for office purposes and for no
         other use, so long as such use is in compliance with all applicable
         laws, ordinances and governmental regulations affecting the Premises.
         Without limiting the provisions of any other portion of the Sublease,
         Subtenant specifically covenants and warrants that it will comply with
         all provisions of Article VIII, Section 1 ("Use of Premises") of the
         Prime Lease except the film, video, and photography use described in
         the first sentence of Article VIII of the Prime Lease. Subtenant shall
         comply with the provisions of Article XI of the Prime Lease as to the
         Premises.

8.       Public Liability Insurance. Subtenant shall comply with the public
         liability insurance requirements set forth in Article XXXII, Section 1
         ("Tenant Insurance") of the Prime Lease, provided, however, that any
         insurance policy shall also name CPi as a named insured. On or before
         the Commencement Date, Subtenant all provide to CPi written evidence of
         such insurance coverage, in the form of either a copy of a policy of
         insurance or a certificate of insurance evidencing the required
         coverages and insured parties.

9.       Condemnation. If the Premises should be taken under the power of
         eminent domain, CPi shall cause the Prime Landlord to perform its
         obligations under Article XXVII of the Prime Lease. Rent shall be
         abated only to the extent of such abatement of Additional Rent as to
         the Premises to which CPi is entitled under the Prime Lease. If the
         Prime Lease is terminated under Article XXVII of the Prime Lease, the
         Sublease shall also terminate.

10.      Damage to the Premises. If the Premises should be damaged by any cause
         described in Article XXVIII of the Prime Lease, CPi shall cause Prime
         Landlord to perform its obligations under Article XVIII. Rent shall be
         abated only to the extent of such abatement of Additional Rent as to
         the Premises to which CPi is entitled under the Prime Lease. If the
         Prime Lease is terminated under Article XXVIII, the Sublease shall also
         terminate.

11.      Indemnification. Except for consequences resulting from acts or
         omissions of CPi, in addition to any indemnification and hold harmless
         agreements set forth in the Prime Lease, Subtenant hereby agrees to pay
         and to protect, indemnify and hold CPi harmless from and against any
         liabilities, damages, costs, expenses (including any and all attorney's
         fees and expenses), causes of action, suits, claims, demands or

<PAGE>

         judgments of any nature whatsoever brought, made or otherwise claimed
         by any person or entity (including Subtenant, which hereby specifically
         releases CPi from the same) and arising from injuries to and/or death
         of persons and/or damage to property on or from the Premises or the
         building in which the Premises are located or the parking lot serving
         the Entire Premises. In any suit, proceeding, demand or action as to
         which CPi may seek indemnity from Subtenant, upon notice from CPi of
         the commencement of such suit, proceeding, demand or action, Subtenant
         will assume and defense thereof with counsel reasonably satisfactory to
         CPi. In addition, Subtenant hereby agrees to pay and to protect,
         indemnify and hold CPi harmless from and against any defaults under the
         Prime Lease caused by the acts or omissions of Subtenant.

12.      As Is Condition. Subtenant has inspected the Premises and the parking
         available to the Premises and accepts them in their AS IS condition.
         CPi makes no representation or warranties, express or implied,
         regarding the physical condition or state of repair of the Premises,
         except that it has no knowledge of physical condition or state of
         repair that is materially inconsistent with the intended use of the
         Premises as set forth in Section 7 herein. CPi will shampoo the
         carpeting as reasonably required prior to the Commencement Date of the
         Lease. Subtenant specifically agrees that, except for such shampooing,
         CPi has no obligation to make any improvement, alteration or repair to
         the Premises. Except for a breach of CPi representations and warranties
         contained in this Sublease, Subtenant hereby releases CPi from any and
         all liability regarding the condition of the Premises. Subtenant
         further covenants to comply with all requirements regarding the
         condition of the Premises as of the termination of the Sublease,
         pursuant to the terms and conditions of the Prime Lease, including
         without limitation the provisions of Article XX, Section 1 ("Tenant to
         Surrender Premises in Good Condition") of the Prime Lease.

13.      Further Assignment/Subletting. Subtenant shall have no right to assign
         this Sublease or further sublet the Premises, in whole or in part. Any
         attempt to so assign this Sublease or further sublet the Premises shall
         be an immediate default of this Sublease.

14.      Security Deposit. Subtenant has deposited with CPi the sum of $40,000,
         to secure the full and faithful performance of all the terms and
         conditions of this Sublease by Subtenant ("Security Deposit"). If
         Subtenant shall default pursuant to this Sublease, CPi may use, apply
         or retain all or any portion of the Security Deposit to cure such
         default or to compensate CPi for any loss or damage which CPi suffer by
         reason of such default. If CPi so uses or applies all or any portion of
         the Security Deposit, Subtenant shall immediately upon written demand
         deposit cash with CPi in an amount sufficient to restore the Security
         Deposit to the full amount stated in this Section 14. CPi shall not be
         required to keep the Security Deposit separate from its general
         accounts and subtenant shall not be entitled to interest on the
         Security Deposit. Within (a) thirty (30) days after the expiration of
         the Term and the vacation of the Premises by Subtenant or (b) a
         reasonable time after any earlier termination of this Sublease and the
         vacation of the Premises by Subtenant, the Security Deposit or such
         part as has not been applied to cure the default, shall be returned to
         Subtenant.

<PAGE>

15.      Notices. Notices given hereunder shall be in writing and delivered in
         person or sent by United States certified or registered mail, postage
         prepaid to the parties at the following addresses:

         If to Tenant:                 Creative Publishing international, Inc.
                                       5900 Green Oak Drive
                                       Minnetonka, MN 55343
                                       Attn:  John Hudgens

         If to Subtenant:              Lightning Rod Software, Inc.
                                       5900 Green Oak Drive
                                       Minnetonka, MN 55343
                                       Attn:  Jeff Skie

         Except where indicated to the contrary in this Sublease, any notice
         required pursuant to this Sublease shall be deemed to be given when
         personally delivered or, if mailed, on the date postmarked.

16.      Subtenant Improvements. Subtenant may not make any alterations,
         additions, installations or changes in and to the Premises or attach
         any signs or equipment to the Premises (collectively, "Alterations")
         without prior written consent of CPi, which consent CPi may withhold in
         its sole discretion which consent of CPi will not unreasonably
         withheld, and of Prime Landlord. Any approved Alterations and the
         Subtenant Improvements shall be at Subtenant's sole cost and expense
         and shall either (a) be removed by Subtenant or (b) remain on and be
         surrendered with the Premises as a part thereof at the termination of
         this Sublease, as Prime Landlord shall direct. All approved Alterations
         and the Subtenant Improvements shall be done in a good and workmanlike
         manner, in compliance with applicable laws, building codes and
         regulations, shall not weaken any structural portions of the Premises,
         and Subtenant shall not permit any laborer's, mechanic's, or
         materialmen's liens to attach to the Premises by reason of the
         Alterations or the Subtenant Improvements or for any reason whatsoever.

17.      Parking. Subtenant and its agents, employees and invitees may occupy no
         more than 90 parking spaces in the Entire Premises parking lot. If
         Subtenant has a need for additional spaces, it may, at its expense,
         expand the parking area by up to 29 additional parking spaces, subject
         to the prior construction plan approval of CPi and Prime Landlord, and
         on such reasonable terms and conditions as CPi or Prime Landlord may
         impose in order to protect the Entire Premises from the imposition of
         liens as a result of such construction.

18.      Brokerage. CPi has been represented in this transaction by Grubb &
         Ellis, and Tenant has been represented by Colliers Towle Real Estate.
         CPi will pay a commission of $90,000 to Grubb & Ellis, to be divided
         equally with Colliers Towle Real Estate. The parties hereby represent
         and warrant that the only real estate brokers involved in the

<PAGE>

         negotiation and execution of this Lease are the brokers named above.
         Each party shall indemnify the other from any and all liability for the
         breach of this representation and warranty on its part.

19.      Costs of Enforcement. In event of any breach of this Sublease by
         Subtenant, Subtenant shall reimburse CPi for all CPi's costs,
         disbursements and attorney's fees incurred in enforcing or attempting
         to enforce the terms of the Sublease.

20.      All Agreements Included. This instrument embodies all of the agreements
         between the parties hereto respecting the Premises. Any subsequent
         changes and modifications shall be embodied in a written instrument
         duly executed by both CPi and Subtenant.

21.      Signage. CPi will allow Subtenant to install signage on top of the
         existing monument sign. Installation shall be at the sole cost and
         expense of Subtenant and shall comply with all ordinances of the City
         of Minnetonka. CPi will continue to use the existing monument sign at
         the entrance of the driveway. CPi shall also have the right to place
         signage of its choosing in the common entrance area to direct invitees
         to CPi's offices.

22.      Consent. The obligations hereunder are subject to the condition
         precedent that Prime Landlord indicate its consent below to this
         Sublease. If such consent has not been obtained on or prior to July 12,
         2000, this Lease shall automatically terminate without liability on the
         part of either party.

IN AGREEMENT, the parties have executed this Sublease Agreement as of the date
first above written.

CREATIVE PUBLISHING                          LIGHTNING ROD SOFTWARE, INC.
INTERNATIONAL, INC.

By:_______________________________           By:_______________________________

Its:______________________________           Its:______________________________

<PAGE>

                                     CONSENT

The undersigned, as Lessor under the Prime Lease referred to above, hereby
consents to the foregoing Sublease Agreement between Creative Publishing
international, Inc. and Lightning Rod Software ("Subtenant"), provided, however,
that (i) such consent shall not release or discharge CPi from liability for all
of the obligations to be performed by CPi under the Prime Lease; and (ii) such
consent shall not be construed as the consent of the undersigned to any further
or additional subletting of all or any part of the Premises subject to the Prime
Lease.

Date:____________________________

<PAGE>

                                    EXHIBIT A

                                   Prime Lease

<PAGE>

                                    EXHIBIT B

                                   Floor PlanLICENSE AGREEMENT

                                      DATED

                                  July 21, 2000

                                     BETWEEN

                         TAISHO PHARMACEUTICAL CO., LTD.

                                       AND

                          NEUROCRINE BIOSCIENCES, INC.

<PAGE>
                                LICENSE AGREEMENT

LICENSE AGREEMENT (this  "Agreement")  dated July 21, 2000 by and between Taisho
Pharmaceutical  Co., Ltd., a Corporation  organized under the laws of Japan with
principal offices located at 24-1, Takata 3-Chome,  Toshima-ku,  Tokyo 170-8633,
Japan ("Taisho") and Neurocrine  Biosciences,  Inc., a Delaware Corporation with
principal  offices located at 10555 Science Center Drive, San Diego,  California
92121 ("Neurocrine").

                                   WITNESSETH:

           WHEREAS, Taisho is engaged in the research, development,  manufacture
and commercialization of human pharmaceuticals.

           WHEREAS,  Neurocrine is engaged in the research and  development of a
proprietary altered peptide ligand product for the treatment of diabetes, and in
connection  therewith  has filed for and  obtained  patent  protection  for such
product and  developed  know-how,  technology  and other  intellectual  property
relating thereto.

           WHEREAS,  Taisho  would  like to  obtain a  license  to  Neurocrine's
technology,   patents  know-how  and  certain  other  intellectual  property  to
research,  develop and commercialize  Neurocrine's  proprietary  altered peptide
ligand product in the Licensed Territory (as defined below).

           WHEREAS,  Neurocrine has agreed to exclusively  license to Taisho the
Licensed Technology (as defined below) in the Licensed Territory.

           NOW THEREFORE,  in  consideration  of the foregoing and the covenants
and promises contained in this Agreement, the Parties agree as follows:

<PAGE>

                                    ARTICLE 1

                                   DEFINITIONS

1.1        "Affiliate"  shall  mean  a  Person  or  entity  that,   directly  or
           indirectly through one or more intermediates, controls, is controlled
           by, or is under common  control with the Person or entity  specified.
           For the purposes of this definition,  control shall mean with respect
           to an entity,  the direct or indirect  ownership  of (i) greater than
           fifty  percent  (50%) of the stock  shares  entitled  to vote for the
           election  of  directors  of the  entity or (ii)  greater  than  fifty
           percent  (50%) of  ownership  interest  of the  entity  or (iii)  the
           ability to direct the management and operations of the entity.

1.2        "Agreement" shall mean this Agreement.

1.3        "Commercialize"  or  "Commercialization"  shall mean those activities
           relating to the  promotion,  marketing and sale of Products and shall
           include  Phase IV  clinical  trials  or  equivalent  clinical  trials
           conducted following Governmental Approval to market Products.

1.4        "Commercially  Reasonable  Efforts"  shall mean efforts and resources
           commonly  used in the  research-based  pharmaceutical  industry for a
           product at a similar  stage in its  product  life of  similar  market
           potential  taking into  account the  competitiveness  of  alternative
           products  in  the  marketplace,  the  patent  and  other  proprietary
           position of the product,  the likelihood of regulatory approval given
           the regulatory  structure involved,  the profitability of the product
           and  alternative  products and other relevant  factors.  Commercially
           Reasonable  Efforts  shall be  determined on a market by market basis
           for a particular  Product,  and it is  anticipated  that the level of
           effort will change over time reflecting  changes in the status of the
           Product and the market involved.

1.5        "Confidential  Information"  shall  mean  information  designated  as
           confidential  information  belonging to either or both Parties herein
           and any other  information  Controlled  by  either  or both  Parties,
           which, if written, is marked confidential by the disclosing Party or,
           if oral,  is  reduced  to  writing  and  marked  confidential  by the
           disclosing Party, within thirty (30) days of the oral disclosure.

1.6        "Controls" or  "Controlled"  shall mean  possession of the ability to
           grant  licenses or  sublicenses  without  violating  the terms of any
           agreement  or other  arrangement  with,  or the  rights of, any Third
           Party.

1.7        "CTX"  shall  mean the  NBI-6024  CTX  filed by  Neurocrine  with the
           Medicines Control Agency in the United Kingdom [XXX].

1.8        "Default"  shall  mean  with  respect  to either  Party  that (i) any
           representation  or warranty of such Party set forth in this Agreement
           shall have been untrue in any material respect when made or (ii) such
           Party shall have failed in the performance of any material obligation
           of such Party set forth herein.

1.9        "Develop" or "Development" shall mean those activities related to the
           pre-clinical and clinical  development of Products and obtainment and
           preservation of Governmental Approvals for Products.

1.10       "Development Data" shall mean preclinical and clinical data possessed
           as of the Effective Date and generated after the Effective Date by or
           on behalf of either  Party,  its  Affiliates or  sublicensees  in the
           Development of Products.

1.11       "Development  Plan" shall mean [XXX] the  Development  of Products as
           approved by the JSC.

1.12       "Effective Date" shall mean the date first written above.

1.13       "Existing Royalty Obligations" shall mean the royalty obligations set
           forth in Section 5.3 and more detailed in Exhibit C. Existing Royalty
           Patent  Rights  shall mean the Patent  Rights for which the  Existing
           Royalty Obligations are paid.

1.14       "FDA"  shall mean the  Federal  Food and Drug  Administration  of the
           United States Department of Health and Human Services,  and successor
           agencies.

1.15       "Field of Use" shall mean with respect to a  pharmaceutical  product,
           all human therapeutic and prophylactic uses of that product. [XXX]

1.16       "Five Year Plan" shall mean the five-year  plan and budget adopted by
           the Parties for the  Development of Products in Asia,  Europe and the
           United States as set forth on Exhibit E.

1.17       "Force  Majeure"  shall mean any  occurrence  beyond  the  reasonable
           control of a Party that prevents or substantially interferes with the
           performance by the Party of any of its obligations hereunder, if such
           occurs by reason of any act of God, flood, fire, explosion, breakdown
           of plant,  earthquake,  strike,  lockout, labor dispute,  casualty or
           accident,  or  war,  revolution,  civil  commotion,  acts  of  public
           enemies,   blockage  or  embargo,  or  any  injunction,   law  order,
           proclamation,  regulation,  ordinance,  demand or  requirement of any
           government or of any subdivision,  authority or representative of any
           such  government,  inability  to  procure  or use  materials,  labor,
           equipment, transportation, or energy sufficient to meet manufacturing
           needs  without  the  necessity  of  allocation,  or any  other  cause
           whatsoever,  whether similar or dissimilar to those above enumerated,
           beyond the reasonable control of such Party, if and only if the Party
           affected shall have used reasonable  efforts to avoid such occurrence
           and to remedy it promptly if it shall have occurred.

1.18       "Governmental   Approvals"   shall  mean  any  approvals,   licenses,
           registrations,  authorizations,  or  equivalents,  of any  foreign or
           United States federal, state or local regulatory agency,  department,
           bureau or other government  entity,  including the FDA, necessary for
           the manufacture,  use, storage,  transport,  export, import, clinical
           testing and/or sale of a Product in a country.

1.19       "Governmental  Authorities"  shall  mean all  governmental  entities,
           agencies  and  bureaus,  including  the  FDA and  comparable  foreign
           governmental   and/or   regulatory   agencies   which   control   the
           manufacture,   use,  storage,  transport,  export,  import,  clinical
           testing and/or sale of pharmaceutical products.

1.20       "JSC" shall mean the Joint Steering  Committee  established  with the
           authorities set forth in Article 4.

1.21       "Licensed   Patent   Rights"   shall  mean  the  patents  and  patent
           applications listed on Exhibit B and any Patent Rights based thereon.

1.22       "Licensed  Technology"  shall  mean any  technology,  trade  secrets,
           know-how  and other  intellectual  property  (other than  Trademarks)
           directed to products, processes,  formulations and/or methods and any
           biological  materials owned or Controlled on the Effective Date or to
           be owned or Controlled  thereafter  by  Neurocrine or its  Affiliates
           which are necessary to research,  develop,  formulate,  make,  use or
           sell  NBI-6024  and  shall  include  the  Licensed   Patent   Rights,
           Neurocrine Data and Manufacturing Technology.

1.23       "Licensed  Territory" shall mean Asian and European  countries listed
           on Exhibit D.

1.24       "Manufacturing  Technology"  shall mean technology and know-how owned
           or Controlled by  Neurocrine  or its  Affiliates  which relate to the
           manufacture  of  NBI-6024  as set  forth  in the CTX  and  any  other
           technology,  know-how or standard operating procedures implemented by
           Neurocrine  or its  Affiliates  which  are  actually  being  used  by
           Neurocrine or its Affiliates to manufacture  Products during the term
           of this Agreement.

1.25       "Milestone  Payments" shall mean the payments to be made by Taisho to
           Neurocrine  upon occurrence of certain events as set forth in Section
           5.1.

1.26       "NBI-6024" shall mean altered peptide ligand [XXX].

1.27       "Net Price Per Unit" shall mean the price per unit of Products or, in
           the case of multi active components  Products,  NBI-6024  contributed
           portion thereof (as determined by a method approved by both Parties),
           for the sale of Products by Taisho or Affiliates or  sublicensees  of
           Taisho to a Third  Party other than  Affiliates  or  sublicensees  of
           Taisho,  less the amount  expected  to be  incurred  per unit such as
           returns and  allowances  (  including,  but not  limited  to,  prompt
           payment and volume discounts,  chargebacks from wholesalers and other
           allowances  granted to customers or wholesalers of Products,  whether
           in cash or trade), freight, shipping,  packing,  insurance,  rebates,
           and sales and other taxes based on sales price when included in gross
           sales,  but not including  taxes when assessed on income derived from
           such sales.

1.28       "Neurocrine  Data"  shall mean the  pre-clinical  and  clinical  data
           collected by Neurocrine or its Affiliates in support of the CTX.

1.29       "Neurocrine  Territory"  shall mean worldwide  excluding the Licensed
           Territory.

1.30       "Party"  shall mean  Neurocrine  or  Taisho,  as the case may be, and
           "Parties" shall mean Neurocrine and Taisho.

1.31       "Patent  Right"  shall  mean  patent  applications,  patents  issuing
           thereon  and any  extensions  or  restorations  by existing or future
           extension   or   restoration   mechanisms   including   Supplementary
           Protection   Certificates  or  the  equivalent   thereof,   renewals,
           continuations, continuations-in-part, divisions, patents-of-addition,
           and/or reissues of any patent,  which have not lapsed,  been canceled
           or  become   abandoned  and  have  not  been   declared   invalid  or
           unenforceable by an unreversed and unappealable decision or judgement
           of a court or other appropriate body of competent jurisdiction.

1.32       "Person" shall mean an individual, a partnership,  a joint venture, a
           corporation, a trust, an estate, an unincorporated  organization,  or
           any  other  entity,  or a  government  or any  department  or  agency
           thereof.

1.33       "Pediatric Phase II" shall mean a Phase II clinical trial in patients
           [XXX].

1.34       "Phase  II"  shall  mean  a  clinical   trial   designed  to  provide
           preliminary  indications  of safety and  efficacy of a Product in the
           intended patient population.

1.35       "Phase  III" shall mean a clinical  trial,  which if the  pre-defined
           end-points are met, is intended to be submitted in an application for
           marketing approval as statistically  significant data in support of a
           Product's safety and efficacy for the intended indication.

1.36       "Product(s)"  shall mean  pharmaceutical  products [XXX] as an active
           component.

1.37       "Regulatory  Filings" shall mean,  collectively,  Investigational New
           Drug Applications, Biologics License Applications, Drug Master Files,
           New Drug  Approvals  and/or  any other  comparable  filings as may be
           required  by   Governmental   Authorities   to  obtain   Governmental
           Approvals.

1.38       "Taisho  Technology"  shall  mean  any  technology,   trade  secrets,
           know-how  and other  intellectual  property  (other than  Trademarks)
           directed to products, processes,  formulations and/or methods and any
           biological  materials owned or Controlled on the Effective Date or to
           be owned or Controlled  thereafter by Taisho or its Affiliates  which
           are necessary to research, develop, formulate, make, use [XXX].

1.39       "Third Party  (ies)"  shall mean any Person other than Taisho  and/or
           Neurocrine.

1.40       "Trademark" shall mean any trade name, logo or trademark  (whether or
           not registered) together with all goodwill associated therewith.

                                    ARTICLE 2

                    REPRESENTATIONS, WARRANTIES AND COVENANTS

2.1        Representations and Warranties of Taisho.

           (a) Corporate  Power.  Taisho is duly organized and validly  existing
           under the laws of Japan and has full corporate power and authority to
           enter into this Agreement and to carry out the provisions hereof.

           (b) Due  Authorization.  Taisho is duly  authorized  to  execute  and
           deliver this Agreement and to perform its obligations hereunder.  The
           Person  executing  this  Agreement  on Taisho's  behalf has been duly
           authorized to do so by all requisite corporate action.

           (c) Binding Agreement. This Agreement is a legal and valid obligation
           binding upon Taisho and enforceable in accordance with its terms. The
           execution,  delivery and performance of this Agreement by Taisho does
           not conflict with any agreement, instrument or understanding, oral or
           written,  to which it is a party  or by  which it may be  bound,  nor
           violate any material  law or  regulation  of any court,  governmental
           body or administrative or other agency having jurisdiction over it.

           (d)  Validity.  Taisho  is aware of no  action,  suit or  inquiry  or
           investigation   instituted   by  any   federal,   state  or   country
           governmental agency which questions or threatens the validity of this
           Agreement.

2.2        Representations and Warranties of Neurocrine.

           (a)  Corporate  Power.  Neurocrine  is  duly  organized  and  validly
           existing under the laws of Delaware and has full corporate  power and
           authority to enter into this  Agreement and carry out the  provisions
           hereof.

           (b) Due  Authorization.  Neurocrine is duly authorized to execute and
           deliver this Agreement and to perform its obligations hereunder.  The
           Person executing this Agreement on Neurocrine's  behalf has been duly
           authorized to do so by all requisite  corporate  action.  (c) Binding
           Agreement.  This  Agreement is a legal and valid  obligation  binding
           upon  Neurocrine,  and enforceable in accordance with its terms.  The
           execution,  delivery and  performance of this Agreement by Neurocrine
           does not conflict with any  agreement,  instrument or  understanding,
           oral or written,  to which it is a party or by which it may be bound,
           nor violate any material law or regulation of any court, governmental
           body or administrative or other agency having jurisdiction over it.

           (d) Validity.  Neurocrine  is aware of no action,  suit or inquiry or
           investigation   instituted   by  any   federal,   state  or   country
           governmental agency which questions or threatens the validity of this
           Agreement.

2.3        Covenants of Taisho.

           (a)  Development  and  Commercialization.  Taisho  covenants  to  use
           Commercially Reasonable Efforts to Develop and Commercialize Products
           in the Licensed Territory.

           (b) Indications.  Taisho will use Commercially  Reasonable Efforts to
           obtain Governmental  Approvals to Develop and Commercialize  NBI-6024
           in the Licensed  Territory for all indications  for which  Neurocrine
           shall have obtained Governmental  Approvals to Commercialize NBI-6024
           in  the  Neurocrine   Territory  to  the  extent   regulatively   and
           practically  appropriate  taking into consideration the circumstances
           of markets in the Licensed Territory.

           (c)  Compliance  by  Taisho.  Taisho  covenants  to  comply  with all
           applicable  statutes,  regulations  and guidance of any  Governmental
           Authorities  relating to the Development and/or  Commercialization of
           Products in the Licensed Territory.

2.4        Covenants of Neurocrine.

           (a) Development and  Commercialization.  Neurocrine  covenants to use
           Commercially Reasonable Efforts to Develop and Commercialize Products
           in the United States.

           (b) Indications.  Neurocrine will use Commercially Reasonable Efforts
           to  obtain  Governmental   Approvals  to  Develop  and  Commercialize
           NBI-6024  in the United  States for all  indications  outlined in the
           Five-Year Plan.

           (c) Compliance by Neurocrine. Neurocrine covenants to comply with all
           applicable  statutes,  regulations  and guidance of any  Governmental
           Authorities  relating to the Development and/or  Commercialization of
           Products in the Neurocrine Territory.

                                    ARTICLE 3

                       LICENSE GRANT; TECHNOLOGY TRANSFER

3.1        Technology  Ownership.  Neurocrine shall retain sole right and title,
           subject only to the  licenses and any other rights  granted to Taisho
           hereunder, with respect to the Licensed Technology.

3.2        License Grants.

           (a)  Neurocrine  hereby  grants to Taisho an  exclusive  license with
           sublicensing rights under Licensed Technology, to research,  develop,
           formulate,  make,  have made, use, sell,  offer for sale,  import and
           export Products in the Field of Use in the Licensed Territory.

           (b) Taisho  hereby  grants to  Neurocrine  an exclusive  license with
           sublicensing  rights under Taisho Technology,  to research,  develop,
           formulate,  make,  have made, use, sell,  offer for sale,  import and
           export Products in the Field of Use in the Neurocrine Territory

3.3        Sublicenses. Taisho and Neurocrine shall each have the right to grant
           sublicenses   to   Licensed   Technology   and   Taisho   Technology,
           respectively,  to  Third  Parties  in their  respective  territories,
           provided,   however,   that  the  sublicensing   Party  shall  remain
           responsible  for  the  full  and  complete   performance  of  all  of
           obligations hereunder. Each Party shall provide the other with copies
           of all agreements sublicensing the Licensed Technology in the case of
           Taisho or Taisho Technology, in the case of Neurocrine,  which copies
           may be redacted  but in any event will contain  such  information  as
           shall be required to  calculate  payments  and any other  information
           reasonably  necessary  to  the  other  Party  to  meet  reporting  or
           corporate obligations.

3.4        Transfer of Licensed Technology.  Neurocrine agrees to use reasonable
           efforts to assist  Taisho in the transfer of the Licensed  Technology
           by instructing and/or assisting Taisho's supervisory employees in the
           use of such technology at Taisho's  facilities or some other location
           mutually  agreed  between the Parties.  Taisho will pay to Neurocrine
           per diem fees based upon [XXX] per Neurocrine person-year plus travel
           and  related  expenses  devoted  to  the  transfer  of  the  Licensed
           Technology  for any  assistance  given to  Taisho  by  Neurocrine  at
           Taisho's request.

3.5        Option.  Following the execution of this Agreement,  the Parties will
           discuss  the terms  under which  Neurocrine  [XXX].  In no event will
           Neurocrine  be obligated to grant the Option to Taisho if the Parties
           are unable to agree on mutually  acceptable  terms,  or if Neurocrine
           determines it is not in Neurocrine's business interests to grant such
           an Option.

                                    ARTICLE 4

                        DEVELOPMENT AND COMMERCIALIZATION

4.1        Joint  Steering  Committee.  The Parties shall form a joint  steering
           committee  (the "JSC")  consisting of at least three (3) members from
           each of  Neurocrine  and Taisho (with  Neurocrine  and Taisho  having
           equal   representation).   The   JSC   shall   have   the   following
           responsibilities:  (i) to establish  policies for the Development and
           Commercialization  of Products,  (ii) to  establish  policies for and
           co-ordinate the formulation activities for Products,  (iii) to review
           and  approve  and monitor  annual  Development  Plans for each of the
           Parties,  (iv)  to  co-ordinate  data  exchange  and  preparation  of
           Regulatory Filings, (v) to monitor the  Commercialization of Products
           in Asia,  Europe and the United States and (vi) such other activities
           as the Parties shall agree are appropriately decided by the JSC.

4.2        Meetings  and  Decision  of  the  Joint   Steering   Committee.   The
           chairperson  of the JSC will be  designated  annually  by Taisho  and
           Neurocrine  on an  alternating  basis  starting  with  Neurocrine.  A
           secretary will be appointed for each meeting and shall be responsible
           for the minutes of the meeting. The JSC shall meet no less frequently
           than twice per year.  Decisions of the JSC shall be made by unanimous
           vote. In the event the JSC is unable to reach agreement on any issue,
           the issue shall be referred to the Senior Vice President, Development
           of Neurocrine and Head of Development of Taisho for  resolution.  All
           decisions of the JSC shall be consistent  with the Five Year Plan and
           will be reached in good faith.

4.3        Development  Plan.  Prior to the  Effective  Date the Parties  worked
           together to  coordinate  the each  Party's  development  plan for its
           territory to develop a global five year plan (the "Five Year Plan" as
           set forth on Exhibit E). The goal of the FiveYear Plan is to minimize
           duplicate efforts and maximize Product potential through coordinated,
           efficient and cost effective Development and  Commercialization.  The
           FiveYear  Plan  includes  outline   timelines  for  pre-clinical  and
           clinical studies and Regulatory  Filings.  The Five Year Plan will be
           updated on an annual basis and, when  necessary in  consideration  of
           the progress of the  Development,  from time to time  additionally by
           mutual  agreement of the Parties.  On or before  September 15 of each
           year each Party will submit to the JSC a plan for the  Development of
           Products for the Party's  territory in the next  following  year (the
           "Development  Plans").  The Development Plans will be consistent with
           the then valid Five Year Plan.

4.4        Data.  On each meeting of the JSC,  and upon  written  request at any
           other time,  the  Parties  will  exchange  written  summaries  of all
           Development Data obtained to the date. Upon request,  each Party will
           provide  the other  Party  with  access to  Development  Data in such
           detail as shall be  reasonably  necessary to allow the other Party to
           use  the   Development   Data  in  support  of  its  Development  and
           Commercialization  of Products in its territory.  In case the cost of
           such a requested  portion of Development  Data other than  Neurocrine
           Data has been borne by only one Party  according to Section 4.8 below
           and requesting Party uses it as the basis for Regulatory Filing (i.e.
           relies upon it to  demonstrate  safety  and/or  efficacy) of New Drug
           Approval in its territory, requesting Party shall give written notice
           of  such  use  in  advance  [XXX].  All  Development  Data  shall  be
           considered  Confidential  Information  of the disclosing  Party.  The
           Parties  shall  maintain  all  Development  Data,   related  records,
           documents  and raw data in sufficient  detail and in good  scientific
           manner as will properly  reflect all works done and results  achieved
           in the performance of the Development.

4.5        Territories.  Taisho  will  conduct  Development  of  Products in the
           Licensed  Territory  and  Neurocrine  will  conduct   Development  of
           Products  in  the  Neurocrine  Territory.  In  their  Development  of
           Products,  each Party may collaborate or consult with researchers and
           investigators and contract for pre-clinical studies without regard to
           territory  restrictions  but in no event  will  Neurocrine  or Taisho
           conduct  clinical  trials  outside  of the  Neurocrine  Territory  or
           Licensed Territory,  respectively, without the prior written approval
           of the other Party.  Notwithstanding  the foregoing,  Neurocrine will
           have the right to  complete  any  clinical  trials in progress on the
           Effective  Date  regardless  of where the  clinical  trials are being
           conducted.

4.6        Development Assistance. Taisho may request that Neurocrine conduct on
           Taisho's  behalf  certain  research  and/or  pre-clinical  studies on
           Products  set  forth  in  Taisho's  Development  Plan.  In the  event
           Neurocrine  has  adequate   personnel   available,   Neurocrine  will
           undertake to conduct such  research  and/or  pre-clinical  studies on
           Taisho's behalf.  Taisho will compensate Neurocrine for per diem fees
           which  will be  calculated  on the  basis of the  amount of [XXX] per
           Neurocrine  personnel full time  equivalent  devoted to such research
           and/or pre-clinical studies.

4.7        Taisho Research and Development.  If Taisho desires,  Taisho may send
           at its expense and Neurocrine agrees to accept Taisho's  employees to
           Neurocrine at  Neurocrine's  San Diego  facilities for Development of
           Products.  Neurocrine and Taisho shall discuss how best to accomplish
           such arrangement.

4.8        Development   Cost.   Each  Party  shall  [XXX]  be  responsible  for
           conducting any  pre-clinical  and/or  clinical  studies and any other
           activities  required only for the Development,  Regulatory  Filing of
           New  Drug  Approval  and/or   Commercialization  of  Product  in  its
           territory ("Independent  Studies").  The outside costs of all studies
           and  activities  and in-house  study costs  approved by the JSC based
           upon  the  Five  Year  Plan  and  the  Development  Plan  other  than
           Independent Studies [XXX] in accordance with the cost sharing methods
           to be agreed by the Parties.  Additionally,  Taisho  shall  reimburse
           Neurocrine  [XXX]  of  all  development  expenses  for  the  Licensed
           Territory that occurred [XXX]. Such  reimbursement will be due within
           thirty (30) days of the execution of this Agreement.

4.9        Commercialization.  The JSC shall  monitor the  Commercialization  of
           Products in Asia, Europe and the United States.  All matters relating
           solely to local issues of promotion,  advertising,  reimbursement  or
           other issues relating solely to  Commercialization of Products in the
           Licensed  Territory  shall be  decided  by  Taisho in  Taisho's  sole
           business  judgment.  All matters  relating  solely to local issues of
           promotion,  selling,  advertising,   reimbursement  or  other  issues
           relating  solely to  Commercialization  of Products in the Neurocrine
           Territory  shall  be  decided  by  Neurocrine  in  Neurocrine's  sole
           business judgment.

4.10       Reporting. Neurocrine and Taisho shall each promptly notify the other
           of any events that  occurred in their  respective  territories  which
           shall be  reported  to any  Governmental  Authorities  in  respective
           Parties' territories under any laws and regulations  including 21 CFR
           314.80,  600.12,  600.14  and  600.80 of the  United  States (as such
           requirements  may be  amended  from time to time) and any  similar or
           equivalent reporting requirements to other Governmental  Authorities.
           As for the events that occur in the context of clinical trials,  both
           Parties shall comply with provisions of Exhibit F.

                                    ARTICLE 5

                       LICENSE FEES AND MILESTONE PAYMENTS

5.1        Data Purchase. On execution of this Agreement,  Taisho shall purchase
           from Neurocrine  rights to the Neurocrine CTX filing for NBI-6024 and
           all supporting  data and  information  for use in exploitation of the
           Asian rights  granted  hereunder for a one-time  payment of [XXX] and
           rights to the  Neurocrine  CTX filing for NBI-6024 and all supporting
           data and  information  for use in exploitation of the European rights
           granted hereunder for a one-time payment of [XXX]. The above payments
           shall be made within thirty (30) days of execution of this Agreement.

5.2        Milestone  Payments.  At the first occurrence of the events as to the
           Product first applicable to the events set forth below, within thirty
           (30) days after  Taisho  becomes  aware of it,  Taisho  shall pay the
           corresponding amounts as the Milestone Payments for all the rights to
           Products  granted  to it as long as this  Agreement  is in force  and
           effect, provided, however, as to the events which occurred before the
           execution  of this  Agreement,  Taisho  shall  pay the  corresponding
           amount within thirty (30) days of the execution of this Agreement:

           a) for the rights in Japan/Asia total [XXX]

              o [XXX] Phase II [XXX]                                [XXX]
              o [XXX] Pediatric Phase II [XXX]                      [XXX]
              o [XXX] Phase III [XXX]                               [XXX]
              o Regulatory Filings of New Drug Approval
                or any other comparable filing [XXX]                [XXX]
              o Governmental Approval for [XXX]                     [XXX]

           b) for the rights in Europe total [XXX]

              o [XXX] Phase II [XXX]                                [XXX]
              o [XXX] Pediatric Phase II [XXX]                      [XXX]
              o [XXX] Phase III [XXX]                               [XXX]
              o Regulatory Filings of New Drug Approval
                or any other comparable filing [XXX]                [XXX]
              o Governmental Approval for Commercialization [XXX]   [XXX]

              Each  Milestone  Payment shall be made only once[XXX]
              upon  Regulatory  Filing of New Drug  Approval or any
              other comparable filing [XXX].

5.3        Third Party Royalties.  [XXX] shall bear any payments  (license fees,
           milestone payments and royalties and so on) owed or to be owed to the
           Third  Parties with respect to Existing  Royalty  Obligations  in the
           Licensed Territory and Neurocrine Territory. [XXX] any other payments
           (license fees, milestone payments and royalties and so on) owed or to
           be owed to Third Parties other than their  Affiliates with respect to
           patents or patent  applications in the Licensed  Territory,  that are
           owned or  controlled  by such Third  Parties and that would  prohibit
           Taisho, and/or its sublicensees from Commercializing  Products on the
           basis of claims directed to a composition  comprising NBI-6024 and/or
           use, making and/or sale thereof in the Licensed Territory. [XXX] bear
           any payments (license fees,  milestone  payments and royalties and so
           on)  owed or to be owed to  Third  Parties  other  than  Neurocrine's
           Affiliates  with  respect  to such Third  Parties'  patents or patent
           applications in the Licensed  Territory other than those described in
           above two cases.

5.4        Sublicense  Fee. Within thirty (30) days of the date upon which [XXX]
           or its Affiliate  shall grant a [XXX] to the [XXX] to any Third Party
           other than  [XXX]  Affiliates,  [XXX]  shall pay to [XXX] per each of
           such Third Parties as executing parties of sublicense  agreement with
           [XXX].  In the event a sublicensee  of [XXX] (other than an Affiliate
           of [XXX])  shall  further  sublicense  the  Licensed  Technology,  no
           additional sublicense fee will be payable for such further sublicense
           unless under the  circumstances,  it was a sublicense that would more
           appropriately been granted by [XXX].

                                  MANUFACTURING

6.1        Pre-clinical and Early Clinical  Supply.  [XXX] shall supply NBI-6024
           for the  pre-clinical,  Phase I and Phase II clinical  studies  other
           than  Independent  Studies set forth in the Five-Year  Plan (i.e. for
           both of Licensed  Territory  and  Neurocrine  Territory)  in the vial
           sizes and quantities set forth in the Five-Year Plan. [XXX] may elect
           to contract with [XXX] for such  manufacture and supply.  [XXX] shall
           use  reasonable  best efforts to  manufacture  and supply  reasonable
           quantities  of  NBI-6024  for  any  Independent  Studies  upon  [XXX]
           request.

6.2        Phase  III  Clinical  Supply  and  Commercial  Supply.   [XXX]  shall
           manufacture  and supply  NBI-6024 for Phase III clinical  studies and
           Commercialization  unless

           (a) the Parties agree otherwise,

           (b) [XXX] is unable to manufacture  and supply  NBI-6024 or

           (c) [XXX] requests that [XXX]  manufacture  and supply  NBI-6024,  in
           whole  or  in  part,   for  Phase   III   clinical   studies   and/or
           Commercialization.

6.3        Costs Prior to  Commercialization.  All costs  incurred in  providing
           supply of NBI-6024 for pre-clinical and clinical studies,  other than
           Independent Studies, set forth in the Five-Year Plan will be [XXX] by
           the  Parties  as set forth in  Section  4.8.  All costs  incurred  in
           providing  supply of NBI-6024 for  pre-clinical  and clinical studies
           that  are  Independent  Studies  will  be  costs  paid  by the  Party
           conducting the Independent Study as set forth in Section 4.8.

6.4        Supply.  Taisho  and  Neurocrine  will agree on a  mechanism  whereby
           Taisho  will  submit  to   Neurocrine   rolling   forecasts   of  its
           requirements  for NBI-6024  followed by firm orders at such times and
           frequencies as shall be reasonably  necessary to enable [XXX] to plan
           its  manufacturing  activities  in order to maximize  efficiency  and
           reduce   costs.   In  the   event   [XXX]   supplies   NBI-6024   for
           Commercialization  by [XXX] under  Section  6.2 above,  the price for
           supply shall [XXX] of the Net Price Per Unit until

           (a) for all Asian countries in the Licensed Territory, the expiration
           of  Patent  Right  last to expire of the  Licensed  Patent  Rights in
           Japan, and

           (b)  for  all  European  countries  in the  Licensed  Territory,  the
           expiration  of Patent  Right  last to expire of the  Licensed  Patent
           Rights in Great Britain, Germany, France or Italy.

           Net Price Per Unit for the  calculation  of the supply price shall be
           decided as  follows:  i) As to the  supply  price for  Taisho's  firm
           orders made by the end of [XXX] calendar quarters commencing with the
           one  during  which  Product  is  launched  for the first  time in the
           Licensed Territory,  Net Price Per Unit shall be [XXX]. ii) As to the
           supply price for Taisho's firm orders made after the period set forth
           in Section 6.4 i) above, Net Price Per Unit shall be [XXX].

6.5        Intermediary.   In  the  event  both  Taisho  and  Neurocrine   shall
           manufacture NBI-6024, Neurocrine and Taisho will each act at purchase
           of materials of NBI-6024 as intermediaries for one another to achieve
           quantity   discounts  and  the  lowest  price  on  manufacturing  and
           supplies.

6.6        Payments.

           (a) Payments. Taisho shall pay all payments for supply of NBI-6024 by
           Neurocrine to Taisho in each case within sixty (60) days from receipt
           of NBI-6024 and invoice.

           (b)  Currency.  If Net Price  Per Unit is in a  currency  other  than
           United  States  Dollars,  the Net Price Per Unit for the  purpose  of
           calculating  payments hereunder shall be determined in the applicable
           foreign  currency and then  converted  into its  equivalent in United
           States  Dollars at the average  rate of exchange for medium of buying
           funds and selling  funds and as published by the Wall Street  Journal
           for the calendar quarter.

           (c) Legal Restrictions. If at any time legal restrictions prevent the
           prompt remittance by Taisho of all or any part of payments for supply
           of NBI-6024 in any country in the  Licensed  Territory,  Taisho shall
           have the right and  option to make such  payment  by  depositing  the
           amount  thereof in local currency to an interest  bearing  account in
           the name of Neurocrine in a bank or other depository in such country.
           Taisho will consult with Neurocrine and promptly advise Neurocrine of
           any such arrangements.

6.7        Manufacturing  by  Taisho.  To the  extent  of not  conflicting  with
           Sections  6.1 and 6.2 above or after the  expiration  of Patent Right
           last to expire of Licensed  Patent Rights in the Licensed  Territory,
           Taisho shall have the right to manufacture  NBI-6024 for the Licensed
           Territory  and/or have  NBI-6024  manufactured  on its behalf,  which
           shall be subject to the terms and  conditions  [XXX].  In such cases,
           Taisho  shall pay in  consideration  of the license of  Manufacturing
           Technology

           (a) the  royalty  not  less  than  [XXX] of Net  Sales  in all  Asian
           countries  in the  Licensed  Territory  until  the time set  forth in
           Section 6.4 (a) and

           (b) the  royalty  not less than  [XXX] of Net  Sales in all  European
           countries  in the  Licensed  Territory  until  the time set  forth in
           Section 6.4 (b), provided however that if a situation occurs in which
           the terms and conditions are [XXX].  In case the  manufacturing  cost
           incurred by Taisho or its subcontractor is too high to meet the above
           requirements,   both   Parties   shall   seek  for  any   appropriate
           arrangements  including a joint  manufacturing  agreement with one or
           more Third Parties.

6.8        Statements. Taisho shall deliver to Neurocrine within sixty (60) days
           after the end of each  calendar  quarter,  a statement  certified  by
           Taisho as accurate to the best of its ability,  setting forth the Net
           Sales of all  Products  and the number of units of such  Products  in
           each country in the Licensed Territory during the previous quarter.

                                    ARTICLE 7

                                 RECORDS; AUDIT

7.1        Record Retention. Each Party shall keep complete and accurate records
           in  sufficient  detail  to  permit  the other  Party to  confirm  the
           accuracy of  calculations  of all payments and all costs and expenses
           hereunder. Such records shall be retained for no less than a four-(4)
           year period  following  the year in which any such payments were made
           hereunder.

7.2        Audit.  Once per calendar  year,  each Party shall have the option to
           engage at its own expense, an independent certified public accountant
           reasonably  acceptable to the other Party, to examine, in confidence,
           the records of the other Party as may be necessary to determine, with
           respect  to  any  calendar  year,  the  correctness  of  any  budget,
           calculation or payment hereunder. The report of such accountant shall
           be  limited to a  certificate  verifying  any report  made or payment
           submitted by the audited Party during such period but may include, in
           the event the accountant shall be unable to verify the correctness of
           any  such  payment,  information  relating  to why  such  payment  is
           unverifiable. All information contained in any such certificate shall
           be  deemed to be  Confidential  Information  hereunder.  If any audit
           performed  under this Section 7.2 shall  indicate that any payment or
           reported  expense  hereunder  was in error by more  than ten  percent
           (10%), the audited Party shall pay the cost of the audit.

7.3        Survival.  This  Article  7 shall  survive  any  termination  of this
           Agreement for a period of four (4) years.

                                    ARTICLE 8

                              INTELLECTUAL PROPERTY

8.1        Trademarks. Each Party will market Products under its own Trademarks.

8.2        Patent Prosecution of the Licensed Patent Rights.

           (a) Direction.  During the term of this Agreement,  Neurocrine  shall
           direct outside counsel  reasonably  acceptable to Taisho to prosecute
           and  maintain  worldwide  all  patents  and/or  patent   applications
           included within the Licensed Patent Rights. Neurocrine will regularly
           consult with Taisho and will keep Taisho and/or its designated patent
           officers and counsel  advised of the status of patent  matters in the
           Licensed  Territory.  Taisho shall have the right to comment upon all
           patent filings  relating to the Licensed  Patent  Rights.  Neurocrine
           shall  furnish  copies of relevant  patent-related  documents for the
           Licensed  Territory to Taisho in a timely fashion to enable Taisho to
           review and comment.

           (b)  Expenses.  All  expenses  in  connection  with  prosecution  and
           maintenance   of  the  Licensed   Patent  Rights  will  be  borne  by
           Neurocrine,   provided,  however,  Taisho  shall  bear  all  expenses
           incurred  after the execution of this  Agreement in  connection  with
           prosecution  and  maintenance  of the Licensed  Patent  Rights in the
           Licensed  Territory  to the  extent  this  Agreement  is in force and
           effect.

8.3        Patent Enforcement of the Licensed Patent Rights. Neurocrine may, but
           shall not be  obligated  to,  elect to enforce  the  Licensed  Patent
           Rights against Third Parties and to defend the Licensed Patent Rights
           against any challenges  worldwide.  In the event  Neurocrine shall so
           elect,  Neurocrine shall determine the worldwide  strategy and Taisho
           shall assist and co-operate with  Neurocrine in any such  enforcement
           or defense.  Neurocrine  shall bear all associated costs and expenses
           (including attorneys' fees) and retain any damages or recoveries with
           respect  to  the  Neurocrine   Territory.   Taisho  shall   reimburse
           Neurocrine  for all costs and expenses  (including  attorneys'  fees)
           incurred by Neurocrine  after the execution of this  Agreement in the
           enforcement  and/or  defense  of  such  action  with  respect  to the
           Licensed  Territory,  and shall retain any damages or recoveries with
           respect  to  the  Licensed   Territory  subject  to  the  payment  to
           Neurocrine of [XXX] of any such damages or recoveries after deduction
           of  the  amount  equal  to the  above  reimbursement.  In  the  event
           Neurocrine  shall  not elect to  undertake  such  enforcement  and/or
           defense  in the  Licensed  Territory,  Taisho  may,  but shall not be
           obligated to, do so at its own expense.  In such event,  Taisho shall
           retain any damages or recoveries obtained from such action.

8.4        Third Party Actions.

           (a)  Neurocrine  as Named Party.  Neurocrine  shall defend any action
           naming   Neurocrine  or  Neurocrine   and  Taisho  and  claiming  the
           infringement  of any Third  Party  Patent  Right  through the making,
           having  made,  using,  selling or having sold  NBI-6024.  The Parties
           shall confer with each other and cooperate  during the defense of any
           action in which both Neurocrine and Taisho are named parties.  Taisho
           shall assist and  co-operate  with  Neurocrine  in the defense of any
           such action and if Neurocrine finds it necessary or desirable to have
           Taisho join as a party,  Taisho  shall  execute all papers or perform
           such other acts as may reasonably be required by  Neurocrine.  Taisho
           shall,  at its own expense,  be entitled to  participate  in and have
           counsel selected by it participate in any action in which Taisho is a
           named party.  Neurocrine shall bear all associated costs and expenses
           (including  attorneys'  fees)  and pay  all  damages  and  settlement
           amounts with respect to the making,  having made,  using,  selling or
           having sold NBI-6024 in the Neurocrine  Territory.  Taisho shall bear
           all  associated  costs  and  expenses  (including   attorneys'  fees)
           incurred  after the  execution of this  Agreement and pay all damages
           and  settlement  amounts  with  respect to the making,  having  made,
           using,  selling or having  sold  NBI-6024 in the  Licensed  Territory
           other than those with respect to Existing Royalty  Obligation  Patent
           Rights  by the  holders  of  those  rights,  which  shall be borne by
           Neurocrine.

           (b) Taisho as Named Party. Taisho shall defend any action which names
           Taisho but does not name Neurocrine and which claims the infringement
           of any Third Party  Patent  Right  through the making,  having  made,
           using, selling or having sold NBI-6024 in the Licensed Territory.  If
           necessary  and  at  Taisho's  expense,  Neurocrine  will  assist  and
           co-operate  with Taisho in any such  defense.  Taisho  shall bear all
           costs and expenses  (including  attorneys'  fees) and all damages and
           settlement  amounts  arising  out of or in  connection  with any such
           action  other than those  arising  out of or in  connection  with any
           action with respect to Existing Royalty  Obligation  Patent Rights by
           the holders of those rights, which shall be borne by Neurocrine.

8.5        New Inventions.

           (a)  Intellectual  property  rights  regarding any invention  made by
           either Party during the term of this Agreement  shall be solely owned
           by such Party, and the other Party shall have no rights in or to such
           invention other than those rights specifically  granted to such other
           Party  hereunder.  The Party who made the  invention  shall  have the
           right to prosecute and maintain,  in its sole  discretion  and at its
           own  expenses,  all  patent  application  or  patent  regarding  such
           invention  in  any  country  in  the  world.  The  other  Party,  its
           Affiliates and its sublicensees  shall have a non-exclusive  right to
           exercise  such  invention  free of  charge  only for the  purpose  of
           Development and Commercialization of Products in its territory.

           (b) Intellectual property rights regarding any invention made jointly
           by the Parties in the course of Development shall be jointly owned by
           the Parties. The Parties shall cooperate with the prosecution and the
           maintenance of patent application and patent regarding such invention
           and the expenses therefor shall be equally borne by the Parties. Each
           Party  shall be free to  exercise  or  license to Third  Parties  its
           interest of such rights for any  purpose  not  conflicting  with this
           Agreement in the world.

           (c) Each Party may at its  discretion  determine  not to maintain its
           intellectual  property  rights set forth in this  Section 8.5, and in
           such  case  shall   notify   the  other   Party  in  writing  of  its
           determination  not to maintain and enable the other Party to maintain
           such rights in the other  Party's name without any  consideration  to
           discontinuing Party and at the other Party's expenses, and after such
           notice  shall  be  exempted  from  obligations  to  bear  any and all
           expenses  regarding such rights. In such event and if the other Party
           maintains such intellectual property rights, the Party who determines
           not to  maintain  shall have no right to such  intellectual  property
           rights.

8.6        Notice. Each Party will promptly notify the other upon becoming aware
           of (i)  any  Third  Party  claim  or  action  against  Taisho  and/or
           Neurocrine for  infringement of Third Party Patent Rights through the
           making,  having made, using,  selling or having sold NBI-6024 or (ii)
           any Third Party infringement of the Licensed Patent Rights.

                                    ARTICLE 9

                                      TAXES

All figures of any payment under this  Agreement,  including  Data Purchase Fee,
Milestone  Payments and payment for supplying of NBI-6024,  are net of any taxes
and duties, except withholding tax if levied in Japan on any of the payment. Any
withholding  taxes  levied shall be borne by  Neurocrine  and deducted by Taisho
from the payment for tax payment to appropriate tax authorities and Taisho shall
obtain and deliver to Neurocrine  the original  copies of all official  receipts
for such withholding tax payment.

                                   ARTICLE 10

                                 CONFIDENTIALITY

10.1       Confidentiality.  Except to the extent  expressly  authorized by this
           Agreement or otherwise agreed in writing by the Parties,  the Parties
           agree  that,  for the term of this  Agreement  and for five (5) years
           thereafter, the receiving Party shall keep confidential and shall not
           publish or  otherwise  disclose to any Third  Parties  other than its
           employees,  directors,  sublicensees  or Affiliates who are under the
           confidentiality  obligation equivalent to that of the receiving Party
           and shall not use for any purpose  other than as provided for in this
           Agreement any Confidential  Information  furnished to it by the other
           Party pursuant to this Agreement, except to the extent that it can be
           established  by the  receiving  Party by  competent  proof  that such
           Confidential Information:

           (a) was already  known to the  receiving  Party,  other than under an
           obligation of confidentiality, at the time of disclosure by the other
           Party;

           (b) was  generally  available to the public or otherwise  part of the
           public domain at the time of its disclosure to the receiving Party;

           (c) became generally available to the public or otherwise part of the
           public domain after its  disclosure and other than through any act or
           omission of the receiving Party in breach of this Agreement;

           (d) was  disclosed  to the  receiving  Party,  other  than  under  an
           obligation of  confidentiality to a Third Party, by a Third Party who
           had no  obligation  to the  disclosing  Party  not to  disclose  such
           information to others; or

           (e) was independently  discovered or developed by the receiving Party
           without the reference to  Confidential  Information  belonging to the
           disclosing Party.

10.2       This Agreement.

           (a) Material Terms. The Parties agree that the material terms of this
           Agreement  shall  be  considered  Confidential  Information  of  both
           Parties.  Each Party shall have the right to  disclose in  confidence
           the  material  terms of this  Agreement  to parties  retained by such
           Party to perform legal, accounting or similar services and who have a
           need to know such terms in order to provide such services.

           (b)  Filings.  The Parties will consult with one another and agree on
           the  provisions of this  Agreement to be redacted in any filings made
           by either  Party  with the  United  States  Securities  and  Exchange
           Commission   or  as   otherwise   required  by  law  or   regulation.
           Notwithstanding  the foregoing,  each Party may disclose the terms of
           this  Agreement  to the extent  necessary  to comply  with the United
           States  Securities  and  Exchange  Commission  requirements  or those
           required by applicable laws or regulations.

10.3       Authorized   Disclosure.   Each  Party  may   disclose   Confidential
           Information   belonging  to  the  other  Party  to  the  extent  such
           disclosure is reasonably necessary in the following:

           (a) filing,  prosecuting or maintaining Patent Rights included in the
           Licensed  Patent  Rights  or  other  Patent  Rights  to  be  acquired
           hereunder;

           (b) Regulatory Filings;

           (c) prosecuting or defending litigation set forth in Article 8;

           (d)   complying   with   applicable   regulations   of   Governmental
           Authorities;

           (e) Product Development; and

           (f) Product Commercialization.

           Notwithstanding  the  foregoing,  in the event a Party  intends or is
           required  to make a  disclosure  of the  other  Party's  Confidential
           Information  pursuant to this  Section  10.3,  it will,  except where
           impracticable,  give reasonable  advance notice to the other Party of
           such disclosure and use best efforts to secure confidential treatment
           of such information.

10.4       Publications. Prior to oral or written presentation or submission for
           publication  of any  data or  information  arising  out of a  Party's
           Development  of  Products,  each  Party  will  provide  a copy of the
           proposed  presentation  or publication to the other Party for review.
           The reviewing Party will have a minimum of thirty (30) days to review
           any  proposed   presentation  or  publication  for  its  Confidential
           Information.  Upon request,  the presenting or publishing  Party will
           remove any Confidential Information belonging to the other Party from
           any presentation or publication.

                                   ARTICLE 11

                           INSURANCE; INDEMNIFICATION

11.1       Indemnification.

           (a)  Non-Patent.  Each Party shall indemnify and hold the other Party
           harmless from and against any and all liability,  damage,  loss, cost
           (including reasonable attorneys' fees) and expense arising out of the
           Development  and/or  Commercialization  of Products by the Party, its
           Affiliates  and/or its  sublicensees  other than those arising out of
           the  infringement  of a Patent  Right of a Third  Party  through  the
           making,  using or selling of  Products by the Party,  its  Affiliates
           and/or its sublicensees,  provided,  however, in case the indemnified
           Party  receives  notice of a claim for which  indemnification  may be
           sought,  the indemnified Party shall promptly inform the indemnifying
           Party of such notice.  Notwithstanding the foregoing, the other Party
           shall not be entitled to  indemnification  under this subsection (a),
           against any claim of personal injury or property damage to the extent
           resulting from such other Party's negligence or misconduct.

           (b)  Patent.  Subject to Section  5.3 and  Article 8, each Party will
           indemnify the other Party and hold the other Party  harmless from and
           against  any  and  all  liability,   damage,  loss,  cost  (including
           reasonable  attorneys'  fees) and expense arising out of any claim of
           infringement  of a Patent Right of a Third Party  through the making,
           having made,  using,  selling or having sold Products by or on behalf
           of the Party which is brought by a Third Party, provided, however, in
           case the  indemnified  Party  receives  notice  of a claim  for which
           indemnification  may be sought,  the indemnified Party shall promptly
           inform the indemnifying Party of such notice.

11.2       Indemnification  Procedure.  In the event the indemnified Party shall
           inform the indemnifying Party of the notice set forth in Section 11.1
           above, the Parties shall, subject to the provisions of Article 8 with
           respect to patent related claims,  decide how to respond to the claim
           and how to handle the claim in an efficient manner.

                                   ARTICLE 12

                              TERM AND TERMINATION

12.1       Term of this Agreement.  This Agreement shall become  effective as of
           the Effective Date and, unless earlier  terminated  pursuant to other
           provisions  of this  Article  12,  shall  continue  in full force and
           effect  until the  expiration  date of Patent Right last to expire of
           Licensed Patent Rights in the Licensed Territory. After expiration of
           this  Agreement,  each Party may continue to exercise  rights  vested
           hereunder  regarding  Products  without  further payment to the other
           Party.

12.2       Termination of Product Development.  Should Taisho completely abandon
           all efforts  towards its  Development for a period of more than [XXX]
           for any reason other than Force Majeure  according to the  reasonable
           judgement by the Parties or should Taisho terminate at its discretion
           Development   of  Products  in  the  Licensed   Territory  by  giving
           Neurocrine  [XXX] prior written notice,  rights of Taisho to Products
           (including  all  data,   information,   physical  manifestations  and
           Regulatory  Filings) in the  Licensed  Territory  shall revert and be
           delivered  to  Neurocrine,  and Taisho shall be free from any and all
           monetary  or  developmental   obligations  thereafter.  In  addition,
           Neurocrine  shall be granted a royalty-free  worldwide  non-exclusive
           license with sublicensing rights under the Taisho Technology to make,
           have made, use and sell Products.

12.3       Default by Taisho.  Upon the Default by Taisho under this  Agreement,
           Neurocrine shall notify Taisho of such Default and, in the event such
           Default  shall be a payment  Default,  require  that Taisho cure such
           Default  [XXX] or in the event such Default  shall be a Default other
           than a payment Default,  require that Taisho cure such Default within
           [XXX].  In the event  Taisho  shall not have cured the Default at the
           end of the  applicable  grace period,  Neurocrine  may terminate this
           Agreement and all licenses to the Licensed  Technology will revert to
           Neurocrine.  Upon  termination  of this  Agreement  pursuant  to this
           Section  12.3,  rights  of Taisho to  Products  (including  all data,
           information,  physical  manifestations and Regulatory Filings) in the
           Licensed  Territory shall revert and Taisho will return to Neurocrine
           all physical manifestations of the Licensed Technology.  In addition,
           Neurocrine  shall be granted a royalty-free  worldwide  non-exclusive
           license with sublicensing rights under the Taisho Technology to make,
           have made, use and sell Products.

12.4       Default by  Neurocrine.  Upon the  Default by  Neurocrine  under this
           Agreement, Taisho shall notify Neurocrine of such Default and require
           that  Neurocrine  cure  such  Default  within  [XXX].  In  the  event
           Neurocrine  shall not have cured the  Default at the end of the [XXX]
           grace period, Taisho shall be relieved, without losing the license or
           any  other  right  granted  to  Taisho  under  or  pursuant  to  this
           Agreement,  of any and all payment  obligations  other than those for
           supply of NBI-6024 by Neurocrine to Taisho  hereunder until such time
           as Neurocrine shall cure such Default.

12.5       Insolvency or Bankruptcy.

           (a)  Insolvent  Party.  Either  Party may,  in  addition to any other
           remedies  available  to  it  by  law  or in  equity,  terminate  this
           Agreement,  in whole or in part, by written notice to the other Party
           in the event the other Party shall have become insolvent or bankrupt,
           or shall have made an assignment for the benefit of its creditors, or
           there  shall have been  appointed  a trustee or receiver of the other
           Party or for all or a substantial  part of its property,  or any case
           or proceeding  shall have been  commenced or other action taken by or
           against  the other  Party in  bankruptcy  or seeking  reorganization,
           liquidation,  dissolution,  winding-up  arrangement,  composition  or
           readjustment  of its debts or any other relief under any  bankruptcy,
           insolvency,  reorganization  or  other  similar  act  or  law  of any
           jurisdiction  now or  hereafter  in effect,  or there shall have been
           issued a warrant  of  attachment,  execution,  distraint  or  similar
           process  against any  substantial  part of the  property of the other
           Party, and any such event shall have continued for [XXX] undismissed,
           unbonded and undischarged.

           (b) Rights in  Bankruptcy.  All rights and licenses  granted under or
           pursuant to this Agreement, are, and shall otherwise be deemed to be,
           for purposes of Section 365 (n) of the U.S. Bankruptcy Code, licenses
           of rights to "intellectual  property" as defined under Section 101 of
           the U.S.  Bankruptcy  Code.  The  Parties  agree that the  Parties as
           licensees of such rights under this  Agreement,  shall retain and may
           fully  exercise  all of their  rights  and  elections  under the U.S.
           Bankruptcy Code or other  applicable  laws. The Parties further agree
           that, in the event of the commencement of a bankruptcy  proceeding by
           or against Taisho under the U.S.  Bankruptcy Code or other applicable
           laws,  Neurocrine shall to the extent legally possible be entitled to
           a complete  duplicate of (or complete access to, as appropriate)  any
           such  intellectual  property and all embodiments of such intellectual
           property,  and  same,  if not  already  in its  possession,  shall be
           promptly  delivered  to  it  (i)  upon  any  such  commencement  of a
           bankruptcy  proceeding  upon its  written  request  therefor,  unless
           Taisho  elects to continue to perform  all of its  obligations  under
           this  Agreement or (ii) if not  delivered  under (i) above,  upon the
           rejection  of this  Agreement  by or on behalf of Taisho upon written
           request therefor by Neurocrine.

           (c) Licenses Upon Bankruptcy.  Upon the termination of this Agreement
           by  Neurocrine  pursuant to this  Section  12.5,  all licenses to the
           Licensed Technology will revert to Neurocrine.

           (d) In case of a commencement of bankruptcy  proceeding by or against
           Neurocrine,  Taisho  shall be  entitled  to the rights  permitted  by
           applicable laws.

12.6       Accrued Rights, Surviving Obligations.  With the exception explicitly
           provided otherwise herein, termination,  relinquishment or expiration
           of this  Agreement  for any reason shall be without  prejudice to any
           rights, which shall have accrued to the benefit of either Party prior
           to such termination, relinquishment or expiration.

12.7       Damages.  In no  event  shall  either  Party be  responsible  for any
           consequential  damages incurred by the other Party in connection with
           this  Agreement,  including,  without  limitation,  lost  profits  or
           opportunities  or injury to Person  or  property  resulting  from the
           termination of this Agreement.

                                   ARTICLE 13

                            MISCELLANEOUS PROVISIONS

13.1       Assignment.  Neither this Agreement nor any interest  hereunder shall
           be assignable  by either Party  without the prior written  consent of
           the other Party unless such  assignment is accompanied by the sale of
           essentially  all of the assigning  company's  assets.  This Agreement
           shall be binding upon the  successors  and  permitted  assigns of the
           Parties and the name of a Party  appearing  herein shall be deemed to
           include the names of such Party's successors and permitted assigns to
           the extent  necessary to carry out the intent of this Agreement.  Any
           assignment not in accordance with this Section shall be void.

13.2       Further  Actions.  Each  Party  agrees to  execute,  acknowledge  and
           deliver such further  instruments,  and to do all such other acts, as
           may be  necessary or  appropriate  in order to carry out the purposes
           and intent of this Agreement.

13.3       Force Majeure. Neither Party shall be liable to the other for loss or
           damages or shall have any right to terminate  this  Agreement for any
           default  or delay  attributable  to any Force  Majeure,  if the Party
           affected  shall  give  prompt  notice of any such  cause to the other
           Party.  The Party giving such notice shall  thereupon be excused from
           such of its  obligations  hereunder  as it is thereby  disabled  from
           performing for so long as it is so disabled,  provided, however, that
           such affected  Party  commences and continues to take  reasonable and
           diligent actions to cure such cause.

13.4       No Trademark Rights.  Except as otherwise  provided herein, no right,
           express or implied, is granted by this Agreement to use in any manner
           the name  "Neurocrine"  or "Taisho" or any other  Trademark,  service
           mark  or  trade  name of the  other  Party  in  connection  with  the
           performance or termination of this Agreement.

13.5       Notices. All notices and other  communications  hereunder shall be in
           writing  and  shall be deemed  given if  delivered  personally  or by
           facsimile  transmission  (receipt  verified),   telexed,   mailed  by
           registered or certified air mail (return receipt requested),  postage
           prepaid,  or sent by express courier  service,  to the Parties at the
           following addresses (or at such other address for a Party as shall be
           specified by like notice, provided, however, that notices of a change
           of address shall be effective only upon receipt thereof):

           If to Neurocrine, addressed to:

           Neurocrine Biosciences, Inc.
           10555 Science Center Drive
           San Diego, California 92121
           Attention: Chief Executive Officer
           Facsimile: 858-658-7605

           With a copy to: Secretary
           Facsimile:  858-658-7605

           If to Taisho, addressed to:

           Taisho Pharmaceutical Co., Ltd.
           24-1, Takata 3-chome, Toshimaku,
           Tokyo 170-8633, Japan
           Attention: Group Manager, Business Development Group,
                           Ethical Business Strategy Division
           Facsimile: 3-3985-0716

13.6       Amendment. No amendment,  modification or supplement of any provision
           of this Agreement shall be valid or effective  unless made in writing
           and signed by a duly authorized officer of each Party.

13.7       Waiver.  No provision of this  Agreement  shall be waived by any act,
           omission or knowledge of any Party or its agents or employees  except
           by an  instrument  in writing  expressly  waiving such  provision and
           signed by a duly authorized officer of the waiving Party.

13.8       Counterparts.  This Agreement shall be executed in two  counterparts,
           each of which shall contain the signature of the Parties and all such
           counterparts shall constitute one and the same agreement.

13.9       Descriptive Headings.  The descriptive headings of this Agreement are
           for  convenience  only,  and  shall  be  of no  force  or  effect  in
           construing or interpreting any of the provisions of this Agreement.

13.10      Governing Law. This Agreement shall be governed by and interpreted in
           accordance with the substantive laws of the State of California.

13.11      Severability.  Whenever  possible,  each  provision of this Agreement
           will be interpreted in such manner as to be effective and valid under
           applicable  law, but if any provision of this Agreement is held to be
           prohibited by or invalid under applicable law, such provision will be
           ineffective  only to the extent of such  prohibition  or  invalidity,
           without invalidating the remainder of this Agreement.

13.12      Entire  Agreement of the Parties.  This Agreement will constitute and
           contain the complete, final and exclusive understanding and agreement
           of  the  Parties  and  cancels  and  supersedes  any  and  all  prior
           negotiations, correspondence,  understandings and agreements, whether
           oral or written,  between the Parties  respecting  the subject matter
           hereof.

13.13      Dispute Resolution.  The Parties agree that in the event of a dispute
           between them arising from,  concerning or in any way relating to this
           Agreement,  the Parties shall undertake good faith efforts to resolve
           any such  dispute in good faith.  In the event the  Parties  shall be
           unable to resolve any such  dispute,  the matter shall be referred to
           the Chief Executive Officer of Neurocrine and the President of Taisho
           for further  review and  resolution.  In the event that they shall be
           unable to resolve  the  dispute,  then the  dispute  shall be finally
           settled by arbitration, in San Francisco, California, under the Rules
           of  Conciliation  and  Arbitration  of the  International  Chamber of
           Commerce.  The award of  arbitration  shall be final and binding upon
           both Parties.

13.14      Independent  Contractors.  The  relationship  between  Neurocrine and
           Taisho created by this  Agreement is one of  independent  contractors
           and  neither  Party  shall  have the  power or  authority  to bind or
           obligate the other except as expressly set forth in this Agreement.

<PAGE>

IN WITNESS  WHEREOF,  the Parties  hereto have executed this Agreement as of the
date first above written.

NEUROCRINE BIOSCIENCES, INC.

/s/Gary A. Lyons
-----------------------------
By: Gary Lyons
Title: Chief Executive Officer

TAISHO PHARMACEUTICAL CO., LTD.

/s/Akira Uehara
------------------------------
By: Akira Uehara
Title: President

<PAGE>

                                    EXHIBIT A

                                    NBI-6024

                                      [XXX]

<PAGE>

                                    EXHIBIT B

                             LICENSED PATENT RIGHTS

                                      [XXX]

<PAGE>

                                    EXHIBIT C

                          EXISTING ROYALTY OBLIGATIONS

                                      [XXX]

<PAGE>

                                   EXHIBIT D

                                 Asian countries

                                      [XXX]

                               European countries

                                      [XXX]

<PAGE>

                                    EXHIBIT E

                                 FIVE YEAR PLAN

                                 (see attached)

<PAGE>

                                    EXHIBIT F

Neurocrine and Taisho will exchange the information  described in this Exhibit F
in English, in the time frames specified below, for NBI-6024.

[XXX]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00013-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00013-of-00352.parquet"}]]