Document:

EMPLOYMENT AGREEMENT

THIS EMPLOYMENT  AGREEMENT,  dated as of May 24, 2000, supercedes the Employment
Agreement dated March 1, 1997 by and between NEUROCRINE BIOSCIENCES, INC., 10555
Science Center Drive, San Diego,  California 92121  (hereinafter the "Company"),
and GARY A. LYONS (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 in the  position of  President  and Chief  Executive  Officer
reporting to the Board of Directors.  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 Company's
Board of Directors may reasonably request,  provided Executive may also serve on
the Boards of Directors of one or more other companies.

         2.3 Other  Activities.  Except  upon the prior  written  consent of the
Board of Directors,  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.

         2.4  Directorship.  Executive will be nominated for  re-election to the
Company's  Board of Directors  through the term of this  Agreement in accordance
with the applicable provisions of the Company's certificate of incorporation and
By-laws. Executive agrees to serve as a Director of the Company at no additional
compensation.

                                    ARTICLE 3

                                  COMPENSATION

         3.1 Base  Salary.  Executive  shall  receive a Base Salary at an annual
rate  of  three  hundred  eighty-five   thousand  dollars  ($385,000),   payable
semi-monthly  in equal  installments  in accordance  with the  Company's  normal
payroll  practices.  The Board of Directors shall provide  Executive with annual
performance  reviews,  and,  thereafter,  Executive  shall be  entitled  to such
increase  in Base  Salary  as the  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  based upon
achievement  of Executive  in meeting  personal  goals  approved by the 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 Board of Directors within ninety
(90) days after the start of the Company's  fiscal year.  The Board of Directors
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 be eligible for an Incentive  Stock Option
award under the 1992 Stock 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  Stock  Loans.  Certain  indebtedness  in the  aggregate  amount of
eighty-five  thousand five hundred dollars  ($85,500),  incurred by Executive in
connection  with the purchase of securities  from the Company shall be repaid in
accordance  with the terms and conditions of the Promissory Note dated March 14,
1997, as amended, between Executive and the Company.

         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, stock options held by Executive 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. 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  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 will
continue  to vest for a period  of six (6)  months  following  termination.  All
vested stock options held by Executive 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 Board of Directors; (c) Executive willfully and 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 Board of Directors  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 twelve  (12)
              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 twelve (12),
(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 twelve (12)  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 twelve (12)  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 and  one-half  (1.5) 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.                         Gary A. Lyons
         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.

GARY A. LYONS                                NEUROCRINE BIOSCIENCES, INC

/s/Gary A. Lyons                             /s/Joseph A. Mollica
------------------------                     ---------------------------
                                              Joseph A. Mollica, Ph.D.
                                              Chairman of the BoardAMENDED AND RESTATED
                              EMPLOYMENT AGREEMENT

THIS  AMENDED  AND  RESTATED  EMPLOYMENT  AGREEMENT,  dated as of May 24,  2000,
supercedes  the  Employment  Agreement  dated  March  1,  1997  by  and  between
NEUROCRINE BIOSCIENCES,  INC., 10555 Science Center Drive, San Diego, California
92121 (hereinafter the "Company"), and PAUL W. HAWRAN (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  Executive  Vice
President  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 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, provided Executive may also serve on the Boards
of Directors of one or more other  companies  with prior written  consent of the
Chief Executive Officer.

         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 sixty thousand dollars ($260,000),  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 Chief Executive Officer and Company's Board of
Directors based upon achievement of Executive in meeting personal goals approved
by the Chief  Executive  Officer and 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 Board of Directors  within ninety (90) days after the start of the
Company's fiscal year. The Chief Executive Officer and Board of Directors 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 be 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  Stock  Loans.  Certain  indebtedness  in the  aggregate  amount of
fifteen thousand dollars ($15,000), incurred by Executive in connection with the
purchase of securities  from the Company shall be repaid in accordance  with the
terms and  conditions  of the  Promissory  Note dated June 2, 1994,  as amended,
between Executive and the Company.

         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  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.  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  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 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  addiiton,  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  willfully and 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 Board of Directors 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 twelve
              (12)  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 twelve (12),
(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 twelve (12)  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 twelve (12)  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.                         Paul W. Hawran
         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.

PAUL W. HAWRAN                          NEUROCRINE BIOSCIENCES, INC

/s/ Paul W. Hawran                      /s/Gary A. Lyons
----------------------                  ---------------------------
                                        Gary A. Lyons,
                                        President and Chief Executive Officer

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