Document:

<PAGE>
                                                                    EXHIBIT 10.3

                               WARRANT REPURCHASE AGREEMENT

               NeoTherapeutics, Inc., 157 Technology Drive, Irvine, California,
92618 (the "Company"), and BNC Bach International, Ltd., c/o Rhino Advisors, 130
West 29th Street, 5th Floor, New York, NY 10001 (the "Investor"), (collectively,
the "Parties") agree as follows:

               1. The Investor hereby agrees to return to the Company for
cancellation Warrant number NEOT063, dated June 7, 2002 (the "Warrant"), for the
purchase of up to 400,000 shares of the Company's common stock, par value $.001
per share, at an exercise price of $0.275 per share, issued to the Investor
pursuant to that certain Securities Purchase Agreement between the Parties,
dated as of June 7, 2002 (the "Securities Purchase Agreement"), in return for a
cash payment from the Company to the Investor of $50,000.

               2. On the date hereof, Investor shall return the Warrant to the
Company at the address set forth above (attention Samuel Gulko) by overnight
courier service for delivery on the next business day.

               3. Upon receipt of the Warrant from the Investor, as
consideration for the cancellation of the Warrant, the Company shall pay the
Investor $50,000 by wire transfer pursuant to the following wire transfer
instructions:

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

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

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

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

               4. Delivery of an executed copy of a signature page to this
Warrant Repurchase Agreement by facsimile transmission shall be effective as
delivery of a manually executed copy of this Warrant Repurchase Agreement and
shall be effective and enforceable as the original. This Warrant Repurchase
Agreement may be executed in one or more counterparts, each of which shall be
deemed an original, but all of which together shall constitute one and the same
instrument. This Warrant Repurchase Agreement shall be governed and construed in
accordance with the internal laws of the State of California without giving
effect to the conflicts of law principles thereunder.

               Executed on July 31, 2002.

                                       NEOTHERAPEUTICS, INC.

                                       By: /s/Samuel Gulko
                                           -------------------------------------
                                       Name: Samuel Gulko
                                             -----------------------------------
                                       Title: Senior V.P. Finance, CFO
                                              ----------------------------------

                                       BNC BACH INTERNATIONAL, LTD.

                                       By:  /s/ H. U. Bachofen
                                            ------------------------------------
                                       Name: H. U. Bachofen
                                             -----------------------------------
                                       Title: Director
                                              ----------------------------------<PAGE>
                                                                    EXHIBIT 10.6

                          ADDITIONAL COLLATERAL RIDER

This Additional Collateral Rider (this "Rider") is part of that certain Master
Lease Agreement dated as of September 22, 2000, as amended by Amendment No. 1
dated as of September 28, 2000, and all Equipment Schedules and Summary
Schedules thereto (collectively, the "Contract") by and between Comdisco, Inc.
and NEOTHERAPEUTICS, INC. (the "Lessee") which Contract was assigned to GENERAL
ELECTRIC CAPITAL CORPORATION (the "Lessor") on or about May 31, 2002. Unless
otherwise defined herein, all capitalized terms used in this Rider have the
meanings set forth in the Contract.

Under the Contract, the Lessee must maintain cash or equivalents of not less
than $5,000,000.00. The Lessee is in default of this covenant as of June 30,
2002. Therefore, after negotiations between the Lessor and Lessee, it is agreed
that Lessor shall waive its right to any remedies or actions that Lessor is or
may be entitled to under the Contract due to this default, and no Event of
Default shall be deemed to have occurred as a result of such default, in
consideration of Lessee's granting of a lien on corporate assets as provided for
herein.

1. As security for the full and faithful performance by Lessee of all of the
obligations of Lessee to Lessor now or hereafter in existence, Lessee does
hereby grant to Lessor a security interest in all of Lessee's right, title and
interest in and to the following (all hereinafter collectively called, the
"Additional Collateral"):

-   All Equipment (as defined in the Uniform Commercial Code) now or hereafter
    owned and wherever located, including but not limited to all laboratory,
    scientific, computer, test and production equipment, all molds and tooling,
    all office furniture and office equipment and all proceeds thereof,
    including insurance proceeds.

-   All Accounts (as defined in the Uniform Commercial Code) now or hereafter
    owned and wherever located, including but not limited to all accounts
    receivable, and all proceeds thereof and therefrom.

         Additional Collateral does not include any Intellectual Property owned
or licensed by Lessee, including but not limited to all patents, trademarks,
service marks, tradenames, copyrights, trade secrets, licenses, information and
proprietary rights and processes.

2. In the event of a default by Lessee under the Contract or under any other
obligation to Lessor, Lessor shall have all of the rights and remedies of a
Lessor under the Uniform Commercial Code with respect to the Additional
Collateral in addition to any other rights which it may have under the Contract.
Lessee shall have the same obligations with respect to the portion of the
Additional Collateral constituting Equipment as it has under the Contract with
respect to the Equipment, as defined in the Contract, financed under the
Contract, including but not limited to the restrictions on moving, transferring,
encumbering or giving up possession of, and the obligation to insure, such
Additional Collateral constituting Equipment.

3. Lessor agrees to release its security interest in the Additional Collateral
upon Lessee maintaining an Unrestricted Cash position equal to the greater of 1)
$5,000,000.00 or 2) the sum of the last three months net income (loss) plus
non-cash charges multiplied by three, for three consecutive quarters, or upon
full payment of Lessee's obligations under the Contract. Unrestricted Cash shall
be defined for purposes of this Rider as cash on hand, including marketable
securities with maturities of less than fourteen (14) months, less cash pledged
to other parties. It shall be an additional Event of Default under the Contract
if Lessee fails to maintain the above minimum Unrestricted Cash position.

4. Lessor is not withholding the Lessee's right to sell Equipment that is part
of the Additional Collateral.

5. The Lessee may make early payment, partial or in full, of its obligation
under the Contract. All payments will be calculated and paid pursuant to the
terms and conditions of the Contract.

<PAGE>
6. This Rider shall run to the benefit of Lessor's successors and assigns.
Except as expressly modified hereby, all of the terms and provisions of the
Contract shall remain in full force and effect.

7. This Rider may be executed in one or more counterparts, each of which shall
be deemed an original, but all of which shall constitute the same instrument.

IN WITNESS WHEREOF, the parties have executed this Rider this 13th day of
September, 2002.

GENERAL ELECTRIC CAPITAL
CORPORATION                              NEOTHERAPEUTICS, INC.

BY: /s/Diane Hernandez                   BY: /s/Rajesh C. Shrotriya
    -----------------------------------      -----------------------------------

TITLE:  Vice President                   TITLE:  Chairman and Chief Executive
        -------------------------------          Officer
                                                 -------------------------------<PAGE>
                                                                    EXHIBIT 10.7

                              Settlement Agreement

                                     between

                              NeoTherapeutics, Inc.
                              157 Technology Drive
                            Irvine; California 92618

                       - in the following called "NEOT"

                                       and

                                 Merck Eprova AG

                               Im Laternenacker 5
                                8200 Schaffhausen
                                   Switzerland

                      - in the following called "EPRO" -

Whereas NEOT develops new drugs for e.g. neurological diseases;

Whereas EPRO changed recently its company name from Eprova AG into Merck Eprova
AG out of corporate identity reasons and manufactures intermediates of drug
substances or the drug substances itself (e.g. Neotrofin and AIT-034);

Whereas NEOT has asked EPRO to manufacture certain substances (SUBSTANCES) as
listed in attachment 1;

Whereas EPRO has fulfilled its obligations, NEOT has indicated that it has
presently no use for these SUBSTANCES and asks for a settlement of the payables
in a reasonable manner;

Whereas EPRO is willing to help NEOT to restore financial stability and to find
other possible uses for the SUBSTANCES;

Therefore the parties agree as follows:

<PAGE>
1) EPRO will remain the owner of all SUBSTANCES as mentioned in the four
invoices as listed in attachment 2.

2) NEOT grants to EPRO the right of first refusal for the production of any
further needs of the SUBSTANCES as well as the related drug substances Neotrofin
and AIT-034 for a duration of five (5) years after execution of this agreement.
EPRO agrees to negotiate the terms of the production of the SUBSTANCES in good
faith.

3) EPRO will examine carefully all recommendations of NEOT to sell the
SUBSTANCES to third parties. EPRO will also try to find third parties interested
in the SUBSTANCES.

4) NEOT will pay CHF 485'470 within ten (10) days after the execution of this
agreement to the account of EPRO as stated in attachment 3 for full and final
payment of the invoices listed in attachment 2. The above-mentioned sum has been
combined from the following amounts:

<TABLE>
<CAPTION>
INVOICE             COMPOUND                                     AMOUNT
<S>                 <C>                                          <C>
1) D22094           Aminopropylpyrrolidinone                     CHF  102'700
--------------------------------------------------------------------------------
2) D22095           ACA                                          CHF  175'500
--------------------------------------------------------------------------------
3) D22049           ACA                                          CHF    66'625
--------------------------------------------------------------------------------
4) D22162           Ala-benzonate                                CHF  140'645
--------------------------------------------------------------------------------
</TABLE>

5) EPRO will not charge costs for the storage and possible disposal of the
SUBSTANCES, V.A.T. as well as for not-realized interests.

6) a) After the last signature under this agreement, the patent application PCT
WO 02/00659 and all corresponding patent applications or patent rights based on
US Appl No. 09/602,048 (PATENTS), owned by NEOT will become the property of EPRO
according to the ten (10) provisions of attachment 4.

b) For the case, NEOT would be interested to get back the rights on these
PATENTS, EPRO herewith grants to NEOT an exclusive option to buy these PATENTS
within twelve (12) months after execution of this agreement for a purchase price
of CHF 527'676 plus all costs which has been incurred to maintain the PATENTS
during this time. During the term of the exclusive option, EPRO agrees to not
enter into any agreement related to the PATENTS in regard to Neotrofin and
AIT-034 without the prior consent of NEOT. EPRO also agrees it will use
commercially reasonable efforts to maintain the PATENTS.

c) In case, NEOT repurchases the PATENTS, EPRO will be granted a non-exclusive,
royalty-free, world-wide license to these PATENTS excluding the manufacturing of
Neotrofin and AIT-034. Any assignment of the PATENTS by NEOT to a third party
will be subject to the non-exclusive license to EPRO.

d) In case, NEOT desires to contract for the production of Neotrofin or AIT-034
after the time-frame of item 2 above and does not exercise its option to
repurchase the PATENTS under item 2, EPRO will grant NEOT a non-exclusive,
world-wide license with a license fee that will not exceed CHF 527'676 over the
life of the license. Moreover, in addition to the aforementioned license fee,
NEOT agrees to EPRO all

<PAGE>
costs which will have been incurred by EPRO to maintain the PATENTS to date and
during the time of the licensing agreement.

7) In case NEOT is in default with the agreed payment, EPRO may claim interests
of 20% above LIBOR per year for the unpaid sum. In case NEOT indicates not to
pay any amount of the agreed sums, EPRO may claim to be paid according to
attachment 2 for the unpaid rest as well as an interest rate of 5% above LIBOR
per year since the date of the invoices and all costs and damages caused by the
non-payment and the storage and/or the disposal of the SUBSTANCES.

8) This agreement states the entire understanding of the parties. No change,
modification, alteration, or addition to any provision hereof shall be binding
unless in writing and signed by authorized representatives of both parties.

9) This agreement shall be governed by, and construed and enforced in accordance
with Swiss law.

10) Except for the right of either party to apply to a court of competent
jurisdiction for a temporary restraining order, a preliminary injunction, or
other equitable relief to preserve the status quo or prevent irreparable harm,
any and all claims, disputes or controversies arising under, out of, of in
connection with this agreement, which the parties shall be unable to resolve
within sixty (60) days shall be mediated in good faith. The party raising such
dispute shall promptly advise the other party of such claim, dispute or
controversy in a writing which describes in reasonable detail the nature of such
dispute. By not later than five (5) business days after the recipient has
received such notice of dispute, each party shall have selected for itself a
representative who shall have the authority to bind such party, and shall
additionally have advised the other party in writing of the name and title of
such representative. By not later than ten (10) business days after the date of
such notice of dispute, the party against whom the dispute shall be raised shall
select a mediation specialist in the area of the defendant and such
representatives shall schedule a date with such mediation hearing. The parties
shall enter into good faith mediation and shall share the costs equally. If the
representatives of the parties have not been able to resolve the dispute within
fifteen (15) business days after such mediation hearing, the parties shall have
the right to pursue this case by arbitration.

11) All disputes arising in connection with the present contract shall be then
finally settled under the rules of Conciliation and Arbitration of the
International Chamber of Commerce by three arbitrators appointed in accordance
with said rules. The language of correspondence and the language used by the
court in the settlement of disputes shall be English. The place of settlement of
disputes shall be in Schaffhausen. The costs of court of arbitration shall be
born equally by both parties, and each party shall be for its own part of all
other costs arising. Both parties agree to accept the decision of the Court of
Arbitration as final binding of them both to the exclusion of all remedies.

<PAGE>
12) In the event that any one or more of the provisions contained in this
Agreement shall for any reason be held to be invalid, illegal or unenforceable
in any respect, such invalidity, illegality or unenforceability shall not affect
any other provision hereof, and this Agreement shall be construed as if such
invalid, illegal or unenforceable provision or provisions had never been
contained herein.

IN WITNESS WHEREOF, each party has caused this Agreement to be signed by its
duly authorized representatives.

Irvine,                                Schaffhausen, 26 September 2002

NeoTherapeutics, Inc.                  Merck Eprova AG

/s/Rajesh C. Shrotriya, M.D.           /s/M. Ulmann
-------------------------------        -----------------------------------------
                                       M. Ulmann
                                       General Manager

                                       /s/T. Suter
                                       -----------------------------------------
                                       T. Suter
                                       Head Business Support
<PAGE>
                                  Attachment 1

Compound
------------------------------
Aminopropylpyrrolidinone
------------------------------
ACA
------------------------------
ACA
------------------------------
Ala-benzonate
------------------------------
<PAGE>
                                  Attachment 2

<TABLE>
<CAPTION>
Invoice             Compound                                     Amount
--------------------------------------------------------------------------------
<S>                 <C>                                          <C>
1) D22094           Aminopropylpyrrolidinone                     CHF  102'700
--------------------------------------------------------------------------------
2) D22095           ACA                                          CHF  351'000
--------------------------------------------------------------------------------
3) D22049           ACA                                          CHF  133'250
--------------------------------------------------------------------------------
4) D22162           Ala-benzonate                                CHF  426`196
--------------------------------------------------------------------------------
</TABLE>

<PAGE>
                                  Attachment 3

                                 Account of EPRO

                No. 230-M0141740.0 at UBS AG, Zurich, Swift-Code UBSWCCHZZ
<PAGE>
                                  Attachment 4

(1) NEOT herewith transmits all rights to EPRO on the PCT WO 02/00659 (US Appl
No. 09/602,048) with all rights connected thereto.

(2) Therefore, after the last signature under this agreement, the PATENTS become
the property of EPRO. NEOT will agree to the recording of the assignment of the
PATENTS in the register of the US -- as well as the PCT Patent Office and NEOT
promises to provide the required documents and to make all necessary signatures.

(3) NEOT promises to submit to EPRO all written research documents, tabulations,
experimental reports, correspondences, which relate to the subject matter
invention. The transfer will be made at the latest thirty (30) days after the
execution of this agreement.

(4) NEOT will advise EPRO about the status of the PATENTS and their plans for a
optimal protection of the invention in the different countries.

(5) If required by EPRO, NEOT promises to provide its full assistance to EPRO
after the transfer of the documents and materials for an introduction of the
employees of EPRO.

(6) EPRO is aware of the technical features of the invention. NEOT is not liable
for the technical utility and completeness of the technical documents under this
agreement.

(7) NEOT declares that legal defects in the PATENTS and technical defects in the
invention are not known to him. A liability for freedom of defects, particularly
dependency of the invention is not undertaken. All rights of warranty or
rescission by EPRO are excluded.

(8) NEOT promises to keep knowledge relating to the patented invention
confidential after the complete signature of the agreement until it has bought
back the rights on the PATENTS as agreed in this agreement.

(9) NEOT promises not to attack the PATENTS and/or all derived patents and not
to assist third parties in attacks on the PATENTS and/or all derived patents.

(10) The costs and fees for the assignment and recording will be borne by EPRO.
EPRO will also pay all the fees and costs for maintenance of the PATENTS after
the execution of this agreement.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00044-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00044-of-00352.parquet"}], [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00044-of-00352.parquet"}]]