Document:

EMPLOYMENT AGREEMENT

THIS EMPLOYMENT  AGREEMENT,  dated as of May 24, 2000, supercedes the Employment
Agreement  dated January 1, 1998 by and between  NEUROCRINE  BIOSCIENCES,  INC.,
10555  Science  Center  Drive,  San Diego,  California  92121  (hereinafter  the
"Company"), and D. BRUCE CAMPBELL, Ph.D. (hereinafter "Executive").

                                 R E C I T A L S

         WHEREAS,  the Company and Executive wish to set forth in this Agreement
the terms and conditions  under which Executive is to be employed by the Company
on and after the date hereof; and

         NOW,  THEREFORE,  the Company and Executive,  in  consideration  of the
mutual promises set forth herein, agree as follows:

                                    ARTICLE 1

                                TERM OF AGREEMENT

         1.1 Commencement Date. Executive's fulltime employment with the Company
under this Agreement shall commence as of May 24, 2000 ("Commencement Date") and
this  Agreement  shall  expire  after a  period  of  three  (3)  years  from the
Commencement Date, unless renewed in accordance with paragraph 1.2 or terminated
pursuant to Article 6.

         1.2 Renewal. The term of this Agreement shall be automatically  renewed
for  successive,  additional  three (3) year terms unless either party  delivers
written  notice to the other at least  ninety  (90) days prior to the end of any
term of an intention to  terminate  this  Agreement or to renew it for a term of
less than  three  (3)  years  but not less  than (1)  year.  If the term of this
Agreement  is renewed for a term of less than three (3) years,  then  thereafter
the  term of this  Agreement  shall be  automatically  renewed  for  successive,
additional  identical terms unless either party delivers a written notice to the
other of an intention to terminate this Agreement or to renew it for a different
term of not less than one (1) year,  such notice to be delivered at least ninety
(90) days  prior to the end of any term.  The  Company's  failure  to renew this
Agreement at the end of any term shall be considered a termination without Cause
as set forth in Section 6.4 below.

                                    ARTICLE 2

                                EMPLOYMENT DUTIES

         2.1  Title/Responsibilities.  Executive hereby accepts  employment with
the Company  pursuant to the terms and conditions  hereof.  Executive  agrees to
serve the  Company  as an  Executive  Officer  in the  position  of Senior  Vice
President - Development reporting to the Executive Vice President - Research and
Development and/or the Chief Executive Officer.  Executive shall have the powers
and duties commensurate with such position,  including but not limited to hiring
personnel necessary to carry out the  responsibilities  for such position as set
forth in the annual business plan approved by the Board of Directors.

         2.2 Full Time  Attention.  Executive  shall devote his best efforts and
his  full  business  time  and  attention  to the  performance  of the  services
customarily  incident to such office and to such other services as the President
or Board may reasonably request.

         2.3 Other  Activities.  Except  upon the prior  written  consent of the
President & Chief  Executive  Officer,  Executive shall not during the period of
employment  engage,  directly  or  indirectly,  in any other  business  activity
(whether or not pursued for pecuniary  advantage)  that is or may be competitive
with, or that might place him in a competing  position to that of the Company or
any other  corporation  or entity  that  directly  or  indirectly  controls,  is
controlled  by, or is under  common  control  with the Company  (an  "Affiliated
Company"),  provided  that  Executive  may own less than two percent (2%) of the
outstanding securities of any such publicly traded competing corporation.

                                    ARTICLE 3

                                  COMPENSATION

         3.1 Base  Salary.  Executive  shall  receive a Base Salary at an annual
rate of two hundred forty thousand dollars  (240,000),  payable  semi-monthly in
equal  installments in accordance with the Company's  normal payroll  practices.
The Chief  Executive  Officer shall provide  Executive  with annual  performance
reviews,  and, thereafter,  Executive shall be entitled to such increase in Base
Salary as the Chief  Executive  Officer and Board of Directors  may from time to
time establish in their sole discretion.

         3.2 Incentive  Bonus. In addition to any other bonus Executive shall be
awarded by the Company's Board of Directors,  the Company shall pay Executive an
annual  bonus as  determined  by the  Company's  Board of  Directors  and  Chief
Executive  Officer based upon achievement of Executive in meeting personal goals
approved by the Chief  Executive  Officer/ Board of Directors and achievement by
the Company of  corporate  goals  approved by the Board of  Directors  annually.
Executive's  personal goals and the Company's  corporate goals will be set forth
in writing by the Chief  Executive  Officer  and Board  within  ninety (90) days
after the start of the Company's  fiscal year.  The Board of Directors and Chief
Executive Officer shall, in their sole discretion, determine whether Executive's
personal goals have been  obtained.  The Board of Directors  shall,  in its sole
discretion, determine whether the corporate goals have been obtained.

         3.3 Equity.  Each year starting in 2000 and continuing through the term
of this Agreement,  the Executive will be eligible for an Incentive Stock Option
award under the 1992  Incentive  Stock Option Plan with the number of shares and
exercise price as shall be determined by the Board of Directors.

         3.4  Withholdings.  All  compensation and benefits payable to Executive
hereunder and the Agreement  shall be subject to all federal,  state,  local and
other withholdings and similar taxes and payments required by applicable law.

                                    ARTICLE 4

                     EXPENSE ALLOWANCES AND FRINGE BENEFITS

         4.1 Vacation.  Executive  shall be entitled to the greater of three (3)
weeks of annual paid  vacation  or the amount of annual  paid  vacation to which
Executive may become  entitled under the terms of Company's  vacation policy for
employees during the term of this Agreement.

         4.2 Benefits. During the term of this Agreement, the Company shall also
provide Executive with the usual health insurance benefits it generally provides
to its other  senior  management  employees.  As Executive  becomes  eligible in
accordance with criteria to be adopted by the Company, the Company shall provide
Executive  with the right to  participate  in and to receive  benefit from life,
accident, disability, medical, pension, bonus, stock, profit-sharing and savings
plans and similar benefits made available generally to executives of the Company
as such plans and benefits may be adopted by the Company.  The amount and extent
of benefits to which  Executive  is entitled  shall be governed by the  specific
benefit plan as it may be amended from time to time.

         4.3 Housing and Relocation Allowances.

         (a) Relocation to the Untied Kingdom.  Upon  termination of Executive's
         employment  with the  Company,  the  Company  has  agreed to  reimburse
         Executive  for costs  associated  with  relocation  back to the  United
         Kingdom  including (i) customary  closing costs and fees (not to exceed
         six  percent  (6%)  of  the  selling  price)  related  to the  sale  of
         Executive's  home in San  Diego  and  (ii)  documented  reasonable  and
         customary moving expenses of household goods and personal  property not
         to  exceed  in  the  aggregate  ten  thousand  dollars  ($10,000).  The
         foregoing provision shall not apply in the event (each a "Disqualifying
         Event")  (i)  at  the  time  of  relocation,   Executive  has  accepted
         employment with another company or it is Executive's intention to do so
         within a period of six (6) months,  (ii)  Executive  has not  completed
         four (4) full years of employment  at the Company or (iii)  termination
         of Executive's  employment  with the Company is for Cause as defined in
         paragraph 6.3 below. In 1999 Executive  elected to sell his home in San
         Diego  and  in  connection  therewith  incurred  seventy-five  thousand
         dollars ($75,000) in documented closing costs. In connection therewith,
         the Company  provided to  Executive,  a loan of  seventy-five  thousand
         dollars  ($75,000) (the  "Relocation  Loan") for the costs that will be
         paid by Company on behalf of Executive hereunder in the event Executive
         meets the requirements for such payments.  The principal balance of the
         Relocation  Loan will bear  interest at a rate of one percent per annum
         (1.0% p.a.) and  principal and interest will be due and payable in full
         upon the earlier of (i) an  Disqualifying  Event or (ii) the  exercise,
         pledge or sale of all or part of the stock  options  granted by Company
         to Executive.  Upon  termination  of  Executive's  employment  with the
         Company  at a time  when  no  Disqualifying  Event  has  occurred,  the
         principal  of the  Relocation  Loan will,  together  with any  interest
         accruing on such amount, be forgiven.

         (b) Travel Allowance. The Company will provide to Executive annually up
         to four (4) round trip Coach Class  airline  tickets San Diego-  United
         Kingdom for  Executive  and his family.  These  tickets  will be booked
         through the  Company's  corporate  travel  account and the Company will
         provide  Business  Class  upgrades  for such tickets on an as available
         basis.

         (c) Taxes. Executive will be responsible for the payment of all federal
         and state income taxes on all  allowances,  loans and loan  forgiveness
         accruing to Executive pursuant to this Section 4.3.

         4.4 Business Expense Reimbursement.  During the term of this Agreement,
Executive shall be entitled to receive proper  reimbursement  for all reasonable
out-of-pocket  expenses  incurred by him (in  accordance  with the  policies and
procedures  established  by the Company for its senior  executive  officers)  in
performing  services  hereunder.  Executive  agrees to  furnish  to the  Company
adequate  records  and other  documentary  evidence  of such  expense  for which
Executive seeks  reimbursement.  Such expenses shall be reimbursed and accounted
for under the policies and procedure established by the Company.

                                    ARTICLE 5

                                 CONFIDENTIALITY

         5.1 Proprietary Information.  Executive represents and warrants that he
has  previously  executed and  delivered to the Company the  Company's  standard
Proprietary  Information  and  Inventions  Agreement in form  acceptable  to the
Company's counsel.

         5.2 Return of Property. All documents,  records,  apparatus,  equipment
and other  physical  property  which is furnished to or obtained by Executive in
the  course of his  employment  with the  Company  shall be and  remain the sole
property of the Company.  Executive  agrees that,  upon the  termination  of his
employment,  he shall  return all such  property  (whether or not it pertains to
Proprietary Information as defined in the Proprietary Information and Inventions
Agreement), and agrees not to make or retain copies,  reproductions or summaries
of any such property.

         5.3      No use of Prior Confidential Information.  Executive will not
intentionally disclose to the Company or use on its behalf any confidential
information belonging to any of his former employers or any other third party.

                                    ARTICLE 6

                                   TERMINATION

         6.1 By Death.  The period of employment  shall terminate  automatically
upon the death of Executive.  In such event, all stock options held by Executive
at the time of termination  will continue to vest for a period of six (6) months
following  termination.  All stock options held by Executive which are vested at
the time of termination or within six (6) months  thereafter will be exercisable
in accordance  with their terms for a period of one year following  termination.
In addition,  the Company shall pay to Executive's  beneficiaries or his estate,
as the case may be, any  accrued  Base  Salary,  any bonus  compensation  to the
extent  earned,  any vested  deferred  compensation  (other than pension plan or
profit-sharing  plan  benefits  which  will  be  paid  in  accordance  with  the
applicable plan), any benefits under any plans of the Company in which Executive
is a participant to the full extent of Executive's  rights under such plans, any
accrued vacation pay and any appropriate business expenses incurred by Executive
in  connection  with  his  duties  hereunder,  all to the  date  of  termination
(collectively Accrued Compensation),  but no other compensation or reimbursement
of  any  kind,  including,  without  limitation,   severance  compensation,  and
thereafter, the Company's obligations hereunder shall terminate.

         6.2 By Disability.  If Executive is prevented from properly  performing
his duties hereunder by reason of any physical or mental incapacity for a period
of one hundred and twenty (120)  consecutive days, or for one hundred and eighty
(180)  days in the  aggregate  in any three  hundred  and  sixty-five  (365) day
period,  then,  to the extent  permitted by law, the Company may  terminate  the
employment of Executive at such time.  In such event,  all stock options held by
Executive  will  continue  to vest  for a  period  of six (6)  months  following
termination.  All stock options  vested at the time of termination or within six
(6) months  thereafter  will be exercisable in accordance with their terms for a
period of one year following termination.  In addition, the Company shall pay to
Executive all Accrued  Compensation,  and shall continue to pay to Executive the
Base  Salary  until such time as  Executive  shall  become  entitled  to receive
disability insurance payments under the disability insurance policy

maintained by the Company,  but no other  compensation or  reimbursement  of any
kind, including without limitation,  severance compensation,  and thereafter the
Company's obligations  hereunder shall terminate.  Nothing in this Section shall
affect   Executive's  rights  under  any  disability  plan  in  which  he  is  a
participant.

         6.3 By Company for Cause.  The Company may  terminate  the  Executive's
employment for Cause (as defined  below)  without  liability at any time with or
without advance notice to Executive. The Company shall pay Executive all Accrued
Compensation,  but no other compensation or reimbursement of any kind, including
without  limitation,   severance  compensation,  and  thereafter  the  Company's
obligations  hereunder shall terminate.  Termination shall be for "Cause" in the
event of the occurrence of any of the following:  (a) any intentional  action or
intentional  failure to act by Executive which was performed in bad faith and to
the material detriment of the Company;  (b) Executive  intentionally  refuses or
intentionally fails to act in accordance with any lawful and proper direction or
order of the Chief  Executive  Officer;  (c) Executive  habitually  neglects the
duties of employment;  or (d) Executive is convicted of a felony crime involving
moral  turpitude,  provided that in the event that an of the foregoing events is
capable of being cured,  the Company shall provide  written  notice to Executive
describing the nature of such event and Executive shall thereafter have ten (10)
business days to cure such event.

         6.4  Termination  Without Cause. At any time, the Company may terminate
the employment of Executive without liability other than as set forth below, for
any reason not  specified  in Section  6.3  above,  by giving  thirty  (30) days
advance  written  notice  to  Executive.  If the  Company  elects  to  terminate
Executive pursuant to this Section 6.4,

(a)      the Company shall pay to Executive all Accrued Compensation,
(b)           the Company shall continue to pay to Executive as provided  herein
              Executive's  Base Salary over the period  equal to nine (9) months
              from the date of such termination as severance compensation,
(c)           the  Company  shall  make a lump sum  payment to  Executive  in an
              amount  equal  to a pro rata  portion  of the  Executive's  annual
              actual cash  incentive  bonus for Company's  fiscal year preceding
              the year of termination based on the number of completed months of
              Executive's employment in the fiscal year plus nine (9),
(d)           the vesting of all  outstanding  stock  options  held by Executive
              shall be  accelerated  so that the amount of shares  vested  under
              such option  shall  equal that  number of shares  which would have
              been vested if the Executive  had continued to render  services to
              the Company for nine (9)  continuous  months after the date of his
              termination of employment, and
(e)           the Company shall pay all costs which the Company would  otherwise
              have incurred to maintain all of  Executive's  health and welfare,
              and  retirement  benefits  (either  on the  same or  substantially
              equivalent terms and conditions) if the Executive had continued to
              render  services  to the Company  for nine (9)  continuous  months
              after the date of his termination of employment.

         The Company shall have no further  obligations to Executive  other than
         those set forth in the preceding sentence.  During the period when such
         severance compensation is being paid to Executive,  Executive shall not
         (i) engage, directly or indirectly,  in providing services to any other
         business program or project that is competitive to a program or project
         being conducted by the Company or any Affiliated Company at the time of
         such employment  termination (provided that Executive may own less than
         two percent (2%) of the  outstanding  securities of any publicly traded
         corporation), or (ii) hire, solicit, or

         attempt  to  solicit  on behalf of  himself  or any other  party or any
         employee  or  exclusive  consultant  of the  Company.  If  the  Company
         terminates  this  Agreement or the  employment  of  Executive  with the
         Company  other than  pursuant  to Section  6.1,  6.2 or 6.3,  then this
         section 6.4 shall apply.

         6.5 Constructive Termination A Constructive Termination shall be deemed
to be a termination of employment of Executive without cause pursuant to Section
6.4. For Purposes of this Agreement, a "Constructive Termination" means that the
Executive  voluntarily  terminates his employment  except in connection with the
termination  of  his  employment  for  death,  disability,   retirement,  fraud,
misappropriation,  embezzlement  (or  any  other  occurrence  which  constitutes
"Cause" under section 6.3) or any other  voluntary  termination of employment by
Executive other than a Constructive  Termination  after any of the following are
undertaken without Executive's express written consent:

                  (a)  the   assignment   to   Executive   of  any   duties   or
         responsibilities  which result in any  diminution of position as judged
         against the duties and  responsibilities  assigned to  executives  with
         Executive's position in the Company's peer group of companies and shall
         not include (i) duties and responsibilities  assigned to Executive with
         the  understanding  that as the  Company  grows  and  management  staff
         increases in number, such duties and  responsibilities  will eventually
         be reassigned in a manner  consistent  with the Company's peer group of
         companies,  (ii) change in reporting  relationship that does not change
         in any  material way the  Executive's  duties and  responsibilities  or
         (iii)  any   change  in  duties  or   responsibilities   or   reporting
         relationships   that  Executive  does  not  identify  as   Constructive
         Termination  to the Chief  Executive  Officer in writing within 15 days
         following  the Chief  Executive  Officer's  proposal  of such change to
         Executive;

                  (b) a  reduction  by the  Company in  Executive's  annual Base
         Salary by greater than five percent (5%);

                  (c) a  relocation  of  Executive  or the  Company's  principal
         executive  offices if Executive's  principal office is at such offices,
         to a location  more than forty  (40) miles from the  location  at which
         Executive is then  performing his duties,  except for an opportunity to
         relocate which is accepted by Executive in writing;

                  (d) any  material  breach by the Company of any  provision  of
         this Agreement; or

                  (e) any  failure by the  Company to obtain the  assumption  of
         this Agreement by any successor or assign of the Company.

         6.6  Termination  Following  Change  in  Control.  In  the  event  of a
termination  Without  Cause or  Constructive  Termination  within six (6) months
after  a  Change  in  Control  (as  defined  below)  or  Executive's   voluntary
termination within thirty (30) days following the six (6) month anniversary of a
Change in Control,  the  Company  shall pay to  Executive  a lump sum  severance
payment in an amount equal to one (1.0) times (Executive's then Base Salary plus
annual actual cash incentive bonus for Company's  fiscal year preceding the year
of termination).  In addition,  the Executive will receive at Executive's option
(i) accelerated  vesting of all stock options held by Executive by reason of the
assumption  or  substitution  of  successor  corporation  stock  options for the
Executive's  unvested Company stock options at the time of the Change in Control
pursuant to the terms of the Company's 1992 Stock Incentive Plan, as amended, or
(ii) a cash  payment  equal to the  cash  value of all  unvested  Company  stock
options held by Executive at the time of the Change in Control. In addition, the
Executive  will be reimbursed for the increase in federal and state income taxes
payable by Executive by reason of the benefits provided under this Section 6.6.

         6.7 Change in Control.  For  purposes of this  Agreement,  a "Change in
Control"  shall have  occurred  if at any time  during  the term of  Executive's
employment hereunder, any of the following events shall occur:

                  (a) The Company is merged,  or  consolidated.  or  reorganized
         into or with another corporation or other legal person, and as a result
         of such merger, consolidation or reorganization less than fifty percent
         (50%) of the combined voting power of the  then-outstanding  securities
         of such  corporation or person  immediately  after such transaction are
         held in the  aggregate  by the  holders  of  voting  securities  of the
         Company immediately prior to such transaction;

                  (b) The Company sells all or  substantially  all of its assets
         or any other  corporation  or other legal person and  thereafter,  less
         than  fifty  percent  (50%)  of  the  combined   voting  power  of  the
         then-outstanding  voting  securities of the  acquiring or  consolidated
         entity are held in the aggregate by the holders of voting securities of
         the Company immediately prior to such sale;

                  (c) There is a report  filed after the date of this  Agreement
         on Schedule 13 D or schedule 14 D-1 (or any successor schedule, form or
         report), each as promulgated pursuant to the Securities Exchange Act of
         l934 (the  "Exchange  Act")  disclosing  that any  person  (as the term
         "person"  is  used in  Section  13(d)(3)  or  Section  14(d)(2)  of the
         exchange Act) has become the beneficial  owner (as the term  beneficial
         owner is defined under Rule 13d-3 or any  successor  rule or regulation
         promulgated under the Exchange Act) representing fifty percent (50%) or
         more  of the  combined  voting  power  of the  then-outstanding  voting
         securities of the Company;

                  (d) The Company  shall file a report or proxy  statement  with
         the  Securities  and Exchange  Commission  pursuant to the Exchange Act
         disclosing in response to item 1 of Form 8-X thereunder or Item 5(f) of
         Schedule 14 A thereunder (or any successor schedule,  form or report or
         item therein) that the change in control of the Company has or may have
         occurred  or  will  or  may  occur  in  the  future   pursuant  to  any
         then-existing contract or transaction; or

                  (e)  During  any   period  of  two  (2)   consecutive   years,
         individuals  who at the  beginning  of any such period  constitute  the
         directors of the Company  cease for any reason to constitute at least a
         majority  thereof unless the election to the nomination for election by
         the  Company's  shareholders  of each  director  of the  Company  first
         elected  during  such  period  was  approved  by a  vote  of  at  least
         two-thirds  of the  directors  of the Company  then still in office who
         were directors of the Company at the beginning of such period.

         6.8 Termination by Executive.  At any time, Executive may terminate his
employment by giving thirty (30) days advance written notice to the Company. The
Company shall pay Executive all Accrued Compensation,  but no other compensation
or  reimbursement  of  any  kind,   including  without   limitation,   severance
compensation,   and  thereafter  the  Company's   obligations   hereunder  shall
terminate.

         6.9  Mitigation.  Except as  otherwise  specifically  provided  herein,
Executive  shall not be required to mitigate the amount of any payment  provided
under this Agreement by seeking other employment or  self-employment,  nor shall
the amount of any payment  provided  for under this  Agreement be reduced by any
compensation  earned by Executive as a result of employment by another  employer
or  through  self-employment  or  by  retirement  benefits  after  the  date  of
Executive's termination of employment from the Company.

         6.10 Coordination. If upon termination of employment, Executive becomes
entitled to rights under other plans,  contracts or arrangements entered into by
the Company, this Agreement shall be coordinated with such other arrangements so
that  Executive's  rights under this  Agreement  are not  reduced,  and that any
payments  under  this  Agreement  offset the same  types of  payments  otherwise
provided under such other arrangements, but do not otherwise reduce any payments
or benefits under such other arrangements to which Executive becomes entitled.

                                    ARTICLE 7

                               GENERAL PROVISIONS

         7.1  Governing  Law. The  validity,  interpretation,  construction  and
performance of this Agreement and the rights of the parties  thereunder shall be
interpreted and enforced under California law without reference to principles of
conflicts of laws.  The parties  expressly  agree that inasmuch as the Company's
headquarters  and principal  place of business are located in California,  it is
appropriate that California law govern this Agreement.

         7.2 Assignment; Successors Binding Agreement.

                  (a) Executive may not assign,  pledge or encumber his interest
         in this Agreement or any part
         thereof.

                  (b) The Company will require any successor  (whether direct or
         indirect,  by purchase,  merger,  consolidation or otherwise) to all or
         substantially  all of the business  and/or  assets of the  Company,  by
         operation  of law or by  agreement  in form  and  substance  reasonably
         satisfactory  to  Executive,  to  assume  and  agree  to  perform  this
         Agreement  in the same  manner and to the same  extent that the Company
         would be required to perform it if no such succession had taken place.

                  (c)  This  Agreement  shall  inure  to the  benefit  of and be
         enforceable   by   Executive's   personal  or  legal   representatives,
         executors, administrators, successors, heirs, distributee, devisees and
         legatees.  If  Executive  should  die while any  amount is at such time
         payable to his hereunder,  all such amounts,  unless otherwise provided
         herein, shall be paid in accordance with the terms of this Agreement to
         Executive's devisee,  legates or other designee or, if there be no such
         designee, to his estate.

         7.3 Certain  Reduction  of  Payments.  In the event that any payment or
benefit  received or to be  received by  Executive  under this  Agreement  would
result in all or a portion  of such  payment  to be subject to the excise tax on
"golden  parachute  payments" under Section 4999 of the Internal Revenue Code of
1986, as amended (the "Code"),  then Executive's payment shall be either (a) the
full  payment or (b) such lesser  amount which would result in no portion of the
payment being subject to excise tax under Section 4999 of the Code, whichever of
the foregoing  amounts,  taking into account the applicable  Federal,  state and
local employment taxes, income taxes, and the excise tax imposed by Section 4999
of the Code,  results in the receipt by Executive on an after-tax  basis, of the
greatest amount of the payment  notwithstanding  that all or some portion of the
payment may be taxable under Section 4999 of the Code.

         7.4 Notice.  For the purposes of this Agreement,  notices and all other
communications  provided for in this Agreement  shall be in writing and shall be
deemed  to have been duly  given  when  delivered  or  mailed  by  certified  or
registered mail,  return receipt  requested,  postage prepaid,  addressed to the
respective  addresses  set forth below or to such other  address as either party
may have furnished to the other in writing in accordance  herewith,  except that
notice of change of address shall be effective only upon receipt.

         To the Company:                                To Executive:

         Neurocrine Biosciences, Inc.                   D. Bruce Campbell, Ph.D.
         10555 Science Center Drive
         San Diego, CA 92121
         Attn.: President & Chief Executive Officer

         7.5  Modification;  Waiver;  Entire  Agreement.  No  provisions of this
Agreement may be modified, waived or discharged unless such waiver, modification
or discharge is agreed to in writing signed by Executive and such officer as may
be  specifically  designated  by the Board of the  Company.  No waiver by either
party  hereto at any time of any  breach by the  other  party of, or  compliance
with, any condition or provision of this Agreement to be performed by such other
party shall be deemed a waiver of similar or dissimilar provisions or conditions
at the same or any prior or subsequent  time. No agreements or  representations,
oral or otherwise, express or implied, with respect to the subject matter hereof
have  been  made by  either  party  which  are not  expressly  set forth in this
Agreement.

         7.6 Validity.  The invalidity or  unenforceability  of any provision of
this  Agreement  shall not affect the  validity or  enforceability  of any other
provision of this Agreement, which shall remain in full force and effect.

         7.7  Controlling  Document.  Except to the extent  described in Section
6.l0,  in case of  conflict  between  any of the  terms  and  condition  of this
Agreement and the document  herein referred to, the terms and conditions of this
Agreement shall control.

         7.8 Executive  Acknowledgment.  Executive  acknowledges (a) that he has
consulted with or has had the opportunity to consult with independent counsel of
his own choice  concerning this Agreement,  and has been advised to do so by the
Company, and (b) that he has read and understands the Agreement,  is fully aware
of its legal effect, and has entered into it freely based on his own judgment.

         7.9 Remedies.

                  (a) Injunctive  Relief. The parties agree that the services to
         be rendered by Executive  hereunder  are of a unique nature and that in
         the event of any breach or  threatened  breach of any of the  covenants
         contained  herein,  the damage or imminent  damage to the value and the
         goodwill of the Company's  business will be  irreparable  and extremely
         difficult  to  estimate,  making  any  remedy  at  law  or  in  damages
         inadequate.  Accordingly,  the parties  agree that the Company shall be
         entitled to  injunctive  relief  against  Executive in the event of any
         breach or threatened  breach of any such  provisions  by Executive,  in
         addition  to any  other  relief  (including  damage)  available  to the
         Company under this Agreement or under law.

                  (b) Exclusive. Both parties agree that the remedy specified in
         Section  7.9(a)  above is not  exclusive  of any other  remedy  for the
         breach by Executive of the terms hereof.

         7.10  Counterparts.  This  Agreement  may be  executed  in one or  more
counterparts,  all of which taken  together  shall  constitute  one and the same
Agreement.

         7.11  Prevailing  Party  Expenses.  In the  event  that any  action  or
proceeding is commenced to enforce the  provisions of the  Agreement,  the court
adjudicating  such action or proceeding  shall award to the prevailing party all
costs and  expenses  thereof,  including,  but not  limited  to, all  reasonable
attorneys' fees, court costs, and all other related expenses.

Executed by the parties as of the day and year first above written.

D. BRUCE CAMPBELL, PH.D.                     NEUROCRINE BIOSCIENCES, INC

/s/Bruce Campbell                            /s/Gary A. Lyons
-----------------------                      --------------------------------
                                             Gary A. Lyons
                                             President & Chief Executive OfficerEMPLOYMENT AGREEMENT

THIS  EMPLOYMENT  AGREEMENT,  dated as of May 24, 2000 supercedes the Employment
Agreement  dated October 1, 1998 by and between  NEUROCRINE  BIOSCIENCES,  INC.,
10555  Science  Center  Drive,  San Diego,  California  92121  (hereinafter  the
"Company"), and MARGARET VALEUR-JENSEN (hereinafter "Executive").

                                 R E C I T A L S

         WHEREAS,  the Company and Executive wish to set forth in this Agreement
the terms and conditions  under which Executive is to be employed by the Company
on and after the date hereof; and

         NOW,  THEREFORE,  the Company and Executive,  in  consideration  of the
mutual promises set forth herein, agree as follows:

                                    ARTICLE 1

                                TERM OF AGREEMENT

         1.1 Commencement Date. Executive's fulltime employment with the Company
under this Agreement shall commence as of May 24, 2000 ("Commencement Date") and
this  Agreement  shall  expire  after a  period  of  three  (3)  years  from the
Commencement Date, unless renewed in accordance with paragraph 1.2 or terminated
pursuant to Article 6.

         1.2 Renewal. The term of this Agreement shall be automatically  renewed
for  successive,  additional  three (3) year terms unless either party  delivers
written  notice to the other at least  ninety  (90) days prior to the end of any
term of an intention to  terminate  this  Agreement or to renew it for a term of
less than  three  (3)  years  but not less  than (1)  year.  If the term of this
Agreement  is renewed for a term of less than three (3) years,  then  thereafter
the  term of this  Agreement  shall be  automatically  renewed  for  successive,
additional  identical terms unless either party delivers a written notice to the
other of an intention to terminate this Agreement or to renew it for a different
term of not less than one (1) year,  such notice to be delivered at least ninety
(90) days  prior to the end of any term.  The  Company's  failure  to renew this
Agreement at the end of any term shall be considered a termination without Cause
as set forth in Section 6.4 below.

                                    ARTICLE 2

                                EMPLOYMENT DUTIES

         2.1  Title/Responsibilities.  Executive hereby accepts  employment with
the Company  pursuant to the terms and conditions  hereof.  Executive  agrees to
serve the  Company  as an  Executive  Officer  in the  position  of Senior  Vice
President  - General  Counsel and  Corporate  Secretary  reporting  to the Chief
Executive Officer.  Executive shall have the powers and duties commensurate with
such position,  including but not limited to hiring personnel necessary to carry
out the  responsibilities  for such position as set forth in the annual business
plan approved by the Chief Executive Officer and Board of Directors.

         2.2 Full Time  Attention.  Executive  shall devote her best efforts and
her  full  business  time  and  attention  to the  performance  of the  services
customarily  incident  to such  office and to such other  services  as the Chief
Executive Officer or Board may reasonably request.

         2.3 Other  Activities.  Except  upon the prior  written  consent of the
Chief  Executive  Officer,  Executive  shall not during the period of employment
engage,  directly or indirectly,  in any other business activity (whether or not
pursued for pecuniary  advantage)  that is or may be  competitive  with, or that
might  place her in a  competing  position  to that of the  Company or any other
corporation or entity that directly or indirectly controls, is controlled by, or
is under common  control with the Company (an  "Affiliated  Company"),  provided
that Executive may own less than two percent (2%) of the outstanding  securities
of any  such  publicly  traded  competing  corporation.  It is  understood  that
Executive will enter into a Consulting Agreement with Executive's prior employer
Amgen Inc. Prior to execution of such agreement, Executive must receive approval
from the  Chief  Executive  Officer,  which  approval  will not be  unreasonably
withheld.

                                    ARTICLE 3

                                  COMPENSATION

         3.1 Base  Salary.  Executive  shall  receive a Base Salary at an annual
rate  two  hundred  and  thirty-five   thousand  dollars   ($235,000),   payable
semi-monthly  in equal  installments  in accordance  with the  Company's  normal
payroll  practices.  The Chief  Executive  Officer shall provide  Executive with
annual performance reviews, and, thereafter, Executive shall be entitled to such
increase in Base Salary as the Chief  Executive  Officer and Board of  Directors
may from time to time establish in their sole discretion.

         3.2 Incentive  Bonus. In addition to any other bonus Executive shall be
awarded by the Company's Board of Directors,  the Company shall pay Executive an
annual  bonus as  determined  by the  Company's  Board of  Directors  and  Chief
Executive  Officer based upon achievement of Executive in meeting personal goals
approved by the Chief  Executive  Officer/ Board of Directors and achievement by
the Company of  corporate  goals  approved by the Board of  Directors  annually.
Executive's  personal goals and the Company's  corporate goals will be set forth
in writing by the Chief  Executive  Officer  and Board  within  ninety (90) days
after the start of the Company's  fiscal year.  The Board of Directors and Chief
Executive Officer shall, in their sole discretion, determine whether Executive's
personal goals have been  obtained.  The Board of Directors  shall,  in its sole
discretion, determine whether the corporate goals have been obtained.

         3.3 Equity.  Each year starting in 2000 and  continuing for the term of
this  Agreement,  the  Executive  will  eligible to receive a Stock Option award
under the  Company's  1992  Incentive  Stock Option Plan,  as amended,  with the
number of  shares  and  exercise  price as shall be  determined  by the Board of
Directors

         3.4  Withholdings.  All  compensation and benefits payable to Executive
hereunder and the Agreement  shall be subject to all federal,  state,  local and
other withholdings and similar taxes and payments required by applicable law.

                                    ARTICLE 4

                     EXPENSE ALLOWANCES AND FRINGE BENEFITS

         4.1 Vacation.  Executive  shall be entitled to the greater of three (3)
weeks of annual paid  vacation  or the amount of annual  paid  vacation to which
Executive may become  entitled under the terms of Company's  vacation policy for
employees during the term of this Agreement.

         4.2 Benefits. During the term of this Agreement, the Company shall also
provide Executive with the usual health insurance benefits it generally provides
to its other  senior  management  employees.  As Executive  becomes  eligible in
accordance with criteria to be adopted by the Company, the Company shall provide
Executive  with the right to  participate  in and to receive  benefit from life,
accident, disability, medical, pension, bonus, stock, profit-sharing and savings
plans and similar benefits made available generally to executives of the Company
as such plans and benefits may be adopted by the Company.  The amount and extent
of benefits to which  Executive  is entitled  shall be governed by the  specific
benefit plan as it may be amended from time to time.

         4.3 Business Expense Reimbursement.  During the term of this Agreement,
Executive shall be entitled to receive proper  reimbursement  for all reasonable
out-of-pocket  expenses  incurred by her (in  accordance  with the  policies and
procedures  established  by the Company for its senior  executive  officers)  in
performing  services  hereunder.  Executive  agrees to  furnish  to the  Company
adequate  records  and other  documentary  evidence  of such  expense  for which
Executive seeks  reimbursement.  Such expenses shall be reimbursed and accounted
for under the policies and procedure established by the Company.

                                    ARTICLE 5

                                 CONFIDENTIALITY

         5.1 Proprietary Information. Executive represents and warrants that she
has  previously  executed and  delivered to the Company the  Company's  standard
Proprietary  Information  and  Inventions  Agreement in form  acceptable  to the
Company's counsel.

         5.2 Return of Property. All documents,  records,  apparatus,  equipment
and other  physical  property  which is furnished to or obtained by Executive in
the  course of her  employment  with the  Company  shall be and  remain the sole
property of the Company.  Executive  agrees that,  upon the  termination  of her
employment,  she shall return all such  property  (whether or not it pertains to
Proprietary Information as defined in the Proprietary Information and Inventions
Agreement), and agrees not to make or retain copies,  reproductions or summaries
of any such property.

        5.3  No use of  Prior  Confidential  Information.  Executive  will  not
intentionally disclose to the Company or

                                    ARTICLE 6

                                   TERMINATION

         6.1 By Death.  The period of employment  shall terminate  automatically
upon the death of Executive.  In such event, all stock options held by Executive
at the time of termination  will continue to vest for a period of six (6) months
following  termination.  All stock options held by Executive  that are vested at
the time of termination or within six (6) months  thereafter will be exercisable
in accordance  with their terms for a period of one year following  termination.
In addition,  the Company shall pay to Executive's  beneficiaries or her estate,
as the case may be, any  accrued  Base  Salary,  any bonus  compensation  to the
extent  earned,  any vested  deferred  compensation  (other than pension plan or
profit-sharing  plan  benefits  which  will  be  paid  in  accordance  with  the
applicable plan), any benefits under any plans of the Company in which Executive
is a participant to the full extent of Executive's  rights under such plans, any
accrued vacation pay and any appropriate business expenses incurred by Executive
in  connection  with  her  duties  hereunder,  all to the  date  of  termination
(collectively Accrued Compensation),  but no other compensation or reimbursement
of  any  kind,  including,  without  limitation,   severance  compensation,  and
thereafter, the Company's obligations hereunder shall terminate.

         6.2 By Disability.  If Executive is prevented from properly  performing
her duties hereunder by reason of any physical or mental incapacity for a period
of one hundred  twenty (120)  consecutive  days, or for one hundred eighty (180)
days in the aggregate in any three hundred sixty-five (365) day period, then, to
the extent  permitted  by law,  the  Company may  terminate  the  employment  of
Executive at such time.  In such event,  all stock  options held by Executive at
the time of  termination  will  continue  to vest for a period of six (6) months
following  termination.  All stock options held by Executive  that are vested at
the  time of  termination  or vest  within  six (6)  months  thereafter  will be
exercisable  in accordance  with their terms for a period of one year  following
termination.  In  addition,  the  Company  shall pay to  Executive  all  Accrued
Compensation,  and shall continue to pay to Executive the Base Salary until such
time as Executive shall become entitled to receive disability insurance payments
under the disability  insurance policy  maintained by the Company,  but no other
compensation  or  reimbursement  of  any  kind,  including  without  limitation,
severance compensation, and thereafter the Company's obligations hereunder shall
terminate.  Nothing in this Section  shall affect  Executive's  rights under any
disability plan in which she is a participant.

         6.3 By Company for Cause.  The Company may  terminate  the  Executive's
employment for Cause (as defined  below)  without  liability at any time with or
without advance notice to Executive. The Company shall pay Executive all Accrued
Compensation,  but no other compensation or reimbursement of any kind, including
without  limitation,   severance  compensation,  and  thereafter  the  Company's
obligations  hereunder shall terminate.  Termination shall be for "Cause" in the
event of the occurrence of any of the following:  (a) any intentional  action or
intentional  failure to act by Executive which was performed in bad faith and to
the material detriment of the Company;  (b) Executive  intentionally  refuses or
intentionally fails to act in accordance with any lawful and proper direction or
order of the Chief  Executive  Officer;  (c) Executive  habitually  neglects the
duties of employment;  or (d) Executive is convicted of a felony crime involving
moral  turpitude,  provided that in the event that an of the foregoing events is
capable of being cured,  the Company shall provide  written  notice to Executive
describing the nature of such event and Executive shall thereafter have ten (10)
business days to cure such event.

         6.4  Termination  Without Cause. At any time, the Company may terminate
the employment of Executive without liability other than as set forth below, for
any reason not  specified  in Section  6.3  above,  by giving  thirty  (30) days
advance  written  notice  to  Executive.  If the  Company  elects  to  terminate
Executive pursuant to this Section 6.4,

(a)           the Company shall pay to Executive all Accrued Compensation,
(b)           the Company shall continue to pay to Executive as provided  herein
              Executive's  Base Salary over the period  equal to nine (9) months
              from the date of such termination as severance compensation,
(c)           the  Company  shall  make a lump sum  payment to  Executive  in an
              amount  equal  to a pro rata  portion  of the  Executive's  annual
              actual cash  incentive  bonus for Company's  fiscal year preceding
              the year of termination based on the number of completed months of
              Executive's employment in the fiscal year plus nine (9),
(d)           the vesting of all  outstanding  stock  options  held by Executive
              shall be  accelerated  so that the amount of shares  vested  under
              such option  shall  equal that  number of shares  which would have
              been vested if the Executive  had continued to render  services to
              the Company for nine (9)  continuous  months after the date of her
              termination of employment, and
(e)           the Company shall pay all costs which the Company would  otherwise
              have incurred to maintain all of  Executive's  health and welfare,
              and  retirement  benefits  (either  on the  same or  substantially
              equivalent terms and conditions) if the Executive had continued to
              render  services  to the Company  for nine (9)  continuous  months
              after the date of her termination of employment.

         The Company shall have no further  obligations to Executive  other than
         those set forth in the preceding sentence.  During the period when such
         severance compensation is being paid to Executive,  Executive shall not
         (i) engage, directly or indirectly,  in providing services to any other
         business program or project that is competitive to a program or project
         being conducted by the Company or any Affiliated Company at the time of
         such employment  termination (provided that Executive may own less than
         two percent (2%) of the  outstanding  securities of any publicly traded
         corporation), or (ii) hire, solicit, or attempt to solicit on behalf of
         himself or any other party or any employee or exclusive  consultant  of
         the Company. If the Company terminates this Agreement or the employment
         of Executive  with the Company  other than pursuant to Section 6.1, 6.2
         or 6.3, then this section 6.4 shall apply.

         6.5 Constructive Termination A Constructive Termination shall be deemed
to be a termination of employment of Executive without cause pursuant to Section
6.4. For Purposes of this Agreement, a "Constructive Termination" means that the
Executive  voluntarily  terminates his employment  except in connection with the
termination  of  her  employment  for  death,  disability,   retirement,  fraud,
misappropriation,  embezzlement  (or  any  other  occurrence  which  constitutes
"Cause" under section 6.3) or any other  voluntary  termination of employment by
Executive other than a Constructive  Termination  after any of the following are
undertaken without Executive's express written consent:

                  (a)  the   assignment   to   Executive   of  any   duties   or
         responsibilities  which result in any  diminution of position as judged
         against the duties and  responsibilities  assigned to  executives  with
         Executive's position in the Company's peer group of companies and shall
         not include (i) duties and responsibilities  assigned to Executive with
         the  understanding  that as the  Company  grows  and  management  staff
         increases in number, such duties and  responsibilities  will eventually
         be reassigned in a manner  consistent  with the Company's peer group of
         companies,  (ii) change in reporting  relationship that does not change
         in any  material way the  Executive's  duties and  responsibilities  or
         (iii)  any   change  in  duties  or   responsibilities   or   reporting
         relationships   that  Executive  does  not  identify  as   Constructive
         Termination  to the Chief  Executive  Officer in writing within 15 days
         following  the Chief  Executive  Officer's  proposal  of such change to
         Executive;
                   (b) a  reduction  by the  Company in  Executive's annual Base
         Salary by greater than five percent (5%);
                   (c) a relocation of Executive or the Company's principal
         executive  offices if Executive's  principal office is at such offices,
         to a location  more than forty  (40) miles from the  location  at which
         Executive is then  performing her duties,  except for an opportunity to
         relocate which is accepted by Executive in writing;
                  (d) any  material  breach by the Company of any  provision  of
         this Agreement; or
                  (e) any  failure by the  Company to obtain the  assumption  of
         this Agreement by any successor or assign of the Company.

         6.6  Termination  Following  Change  in  Control.  In  the  event  of a
termination  Without  Cause or  Constructive  Termination  within six (6) months
after  a  Change  in  Control  (as  defined  below)  or  Executive's   voluntary
termination within thirty (30) days following the six (6) month anniversary of a
Change in Control,  the  Company  shall pay to  Executive  a lump sum  severance
payment in an amount equal to one (1.0) times (Executive's then Base Salary plus
annual actual cash incentive bonus for Company's  fiscal year preceding the year
of termination).  In addition,  the Executive will receive at Executive's option
(i) accelerated  vesting of all stock options held by Executive by reason of the
assumption  or  substitution  of  successor  corporation  stock  options for the
Executive's  unvested Company stock options at the time of the Change in Control
pursuant to the terms of the Company's 1992 Stock Incentive Plan, as amended, or
(ii) a cash  payment  equal to the  cash  value of all  unvested  Company  stock
options held by Executive at the time of the Change in Control. In addition, the
Executive  will be reimbursed for the increase in federal and state income taxes
payable by Executive by reason of the benefits provided under this Section 6.6.

         6.7 Change in Control.  For  purposes of this  Agreement,  a "Change in
Control"  shall have  occurred  if at any time  during  the term of  Executive's
employment hereunder, any of the following events shall occur:

                  (a) The Company is merged,  or  consolidated.  or  reorganized
         into or with another corporation or other legal person, and as a result
         of such merger,  consolidation or  reorganization  less than 50% of the
         combined  voting  power  of the  then-outstanding  securities  of  such
         corporation or person  immediately  after such  transaction are held in
         the  aggregate  by the  holders  of voting  securities  of the  Company
         immediately prior to such transaction;
                  (b) The Company sells all or  substantially  all of its assets
         or any other  corporation  or other legal person and  thereafter,  less
         than 50% of the combined  voting power of the  then-outstanding  voting
         securities  of the  acquiring  or  consolidated  entity are held in the
         aggregate  by  the  holders  of  voting   securities   of  the  Company
         immediately prior to such sale;
                  (c) There is a report  filed after the date of this  Agreement
         on Schedule 13 D or schedule 14 D-1 (or any successor schedule, form or
         report), each as promulgated pursuant to the Securities Exchange Act of
         l934 (the  "Exchange  Act")  disclosing  that any  person  (as the term
         "person"  is  used in  Section  13(d)(3)  or  Section  14(d)(2)  of the
         exchange Act) has become the beneficial  owner (as the term  beneficial
         owner is defined under Rule 13d-3 or any  successor  rule or regulation
         promulgated  under the Exchange  Act)  representing  50% or more of the
         combined voting power of the then-outstanding  voting securities of the
         Company;
                  (d) The Company  shall file a report or proxy  statement  with
         the  Securities  and Exchange  Commission  pursuant to the Exchange Act
         disclosing in response to item 1 of Form 8-X thereunder or Item 5(f) of
         Schedule 14 A thereunder (or any successor schedule,  form or report or
         item therein) that the change in control of the Company has or may have
         occurred  or  will  or  may  occur  in  the  future   pursuant  to  any
         then-existing contract or transaction; or
                  (e)  During  any   period  of  two  (2)   consecutive   years,
         individuals  who at the  beginning  of any such period  constitute  the
         directors of the Company  cease for any reason to constitute at least a
         majority  thereof unless the election to the nomination for election by
         the  Company's  shareholders  of each  director  of the  Company  first
         elected  during  such  period  was  approved  by a  vote  of  at  least
         two-thirds  of the  directors  of the Company  then still in office who
         were directors of the Company at the beginning of such period.

         6.8 Termination by Executive.  At any time, Executive may terminate her
employment by giving thirty (30) days advance written notice to the Company. The
Company shall pay Executive all Accrued Compensation,  but no other compensation
or  reimbursement  of  any  kind,   including  without   limitation,   severance
compensation,   and  thereafter  the  Company's   obligations   hereunder  shall
terminate.

         6.9  Mitigation.  Except as  otherwise  specifically  provided  herein,
Executive  shall not be required to mitigate the amount of any payment  provided
under this Agreement by seeking other employment or  self-employment,  nor shall
the amount of any payment  provided  for under this  Agreement be reduced by any
compensation  earned by Executive as a result of employment by another  employer
or  through  self-employment  or  by  retirement  benefits  after  the  date  of
Executive's termination of employment from the Company.

         6.10 Coordination. If upon termination of employment, Executive becomes
entitled to rights under other plans,  contracts or arrangements entered into by
the Company, this Agreement shall be coordinated with such other arrangements so
that  Executive's  rights under this  Agreement  are not  reduced,  and that any
payments  under  this  Agreement  offset the same  types of  payments  otherwise
provided under such other arrangements, but do not otherwise reduce any payments
or benefits under such other arrangements to which Executive becomes entitled.

                                    ARTICLE 7

                               GENERAL PROVISIONS

         7.1  Governing  Law. The  validity,  interpretation,  construction  and
performance of this Agreement and the rights of the parties  thereunder shall be
interpreted and enforced under California law without reference to principles of
conflicts of laws.  The parties  expressly  agree that inasmuch as the Company's
headquarters  and principal  place of business are located in California,  it is
appropriate that California law govern this Agreement.

         7.2 Assignment; Successors Binding Agreement.

                  (a) Executive may not assign,  pledge or encumber her interest
         in this Agreement or any part thereof.
                  (b) The Company will require any successor  (whether direct or
         indirect,  by purchase,  merger,  consolidation or otherwise) to all or
         substantially  all of the business  and/or  assets of the  Company,  by
         operation  of law or by  agreement  in form  and  substance  reasonably
         satisfactory  to  Executive,  to  assume  and  agree  to  perform  this
         Agreement  in the same  manner and to the same  extent that the Company
         would be required to perform it if no such succession had taken place.
                  (c)  This  Agreement  shall  inure  to the  benefit  of and be
         enforceable   by   Executive's   personal  or  legal   representatives,
         executors, administrators, successors, heirs, distributee, devisees and
         legatees.  If  Executive  should  die while any  amount is at such time
         payable to her hereunder,  all such amounts,  unless otherwise provided
         herein, shall be paid in accordance with the terms of this Agreement to
         Executive's devisee,  legates or other designee or, if there be no such
         designee, to her estate.

         7.3 Certain  Reduction  of  Payments.  In the event that any payment or
benefit  received or to be  received by  Executive  under this  Agreement  would
result in all or a portion  of such  payment  to be subject to the excise tax on
"golden  parachute  payments" under Section 4999 of the Internal Revenue Code of
1986, as amended (the "Code"),  then Executive's payment shall be either (a) the
full  payment or (b) such lesser  amount which would result in no portion of the
payment being subject to excise tax under Section 4999 of the Code, whichever of
the foregoing  amounts,  taking into account the applicable  Federal,  state and
local employment taxes, income taxes, and the excise tax imposed by Section 4999
of the Code,  results in the receipt by Executive on an after-tax  basis, of the
greatest amount of the payment  notwithstanding  that all or some portion of the
payment may be taxable under Section 4999 of the Code.

         7.4 Notice.  For the purposes of this Agreement,  notices and all other
communications  provided for in this Agreement  shall be in writing and shall be
deemed  to have been duly  given  when  delivered  or  mailed  by  certified  or
registered mail,  return receipt  requested,  postage prepaid,  addressed to the
respective  addresses  set forth below or to such other  address as either party
may have furnished to the other in writing in accordance  herewith,  except that
notice of change of address shall be effective only upon receipt.

         To the Company:

         Neurocrine Biosciences, Inc.
         10555 Science Center Drive
         San Diego, CA 92121
         Attn.: President & Chief Executive Officer

 To Executive:
         Margaret Valeur-Jensen, Ph.D., J.D.

         7.5  Modification;  Waiver;  Entire  Agreement.  No  provisions of this
Agreement may be modified, waived or discharged unless such waiver, modification
or discharge is agreed to in writing signed by Executive and such officer as may
be  specifically  designated  by the Board of the  Company.  No waiver by either
party  hereto at any time of any  breach by the  other  party of, or  compliance
with, any condition or provision of this Agreement to be performed by such other
party shall be deemed a waiver of similar or dissimilar provisions or conditions
at the same or any prior or subsequent  time. No agreements or  representations,
oral or otherwise, express or implied, with respect to the subject matter hereof
have  been  made by  either  party  which  are not  expressly  set forth in this
Agreement.

         7.6 Validity.  The invalidity or  unenforceability  of any provision of
this  Agreement  shall not affect the  validity or  enforceability  of any other
provision of this Agreement, which shall remain in full force and effect.

         7.7  Controlling  Document.  Except to the extent  described in Section
6.l0,  in case of  conflict  between  any of the  terms  and  condition  of this
Agreement and the document  herein referred to, the terms and conditions of this
Agreement shall control.

         7.8 Executive  Acknowledgment.  Executive acknowledges (a) that she has
consulted with or has had the opportunity to consult with independent counsel of
her own choice  concerning this Agreement,  and has been advised to do so by the
Company, and (b) that she has read and understands the Agreement, is fully aware
of its legal effect, and has entered into it freely based on her own judgment.

         7.9 Remedies.

                  (a) Injunctive  Relief. The parties agree that the services to
         be rendered by Executive  hereunder  are of a unique nature and that in
         the event of any breach or  threatened  breach of any of the  covenants
         contained  herein,  the damage or imminent  damage to the value and the
         goodwill of the Company's  business will be  irreparable  and extremely
         difficult  to  estimate,  making  any  remedy  at  law  or  in  damages
         inadequate.  Accordingly,  the parties  agree that the Company shall be
         entitled to  injunctive  relief  against  Executive in the event of any
         breach or threatened  breach of any such  provisions  by Executive,  in
         addition  to any  other  relief  (including  damage)  available  to the
         Company under this Agreement or under law.

                  (b) Exclusive. Both parties agree that the remedy specified in
         Section  7.9(a)  above is not  exclusive  of any other  remedy  for the
         breach by Executive of the terms hereof.

         7.10  Counterparts.  This  Agreement  may be  executed  in one or  more
counterparts,  all of which taken  together  shall  constitute  one and the same
Agreement.

         7.11  Prevailing  Party  Expenses.  In the  event  that any  action  or
proceeding is commenced to enforce the  provisions of the  Agreement,  the court
adjudicating  such action or proceeding  shall award to the prevailing party all
costs and  expenses  thereof,  including,  but not  limited  to, all  reasonable
attorneys' fees, court costs, and all other related expenses.

Executed by the parties as of the day and year first above written.

MARGARET VALEUR-JENSEN, PH.D, J.D.             NEUROCRINE BIOSCIENCES, INC

/s/Margaret Valeur-Jensen                      /s/Gary A. Lyons
-------------------------                      ----------------------------
                                               Gary A. Lyons
                                               Chief Executive Officer and
                                               President

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