Document:

<PAGE>

                                                                    EXHIBIT 10.6

                        1997 Edition - Electronic Format

                                       AIA DOCUMENT A111 - 1997

THIS DOCUMENT HAS IMPORTANT LEGAL CONSEQUENCES. CONSULTATION WITH AN ATTORNEY IS
ENCOURAGED WITH RESPECT TO ITS COMPLETION OR MODIFICATION. AUTHENTICATION OF
THIS ELECTRONICALLY DRAFTED AIA DOCUMENT MAY BE MADE BY USING AIA DOCUMENT D401.

This document is not intended for use in competitive bidding.

AIA Document A201-1997, General Conditions of the Contract for Construction, is
adopted in this document by reference. Do not use with other general conditions
unless this document is modified.

This document has been approved and endorsed by The Associated General
Contractors of America.

STANDARD FORM OF AGREEMENT BETWEEN OWNER AND CONTRACTOR
where the basis for payment is the COST OF THE WORK PLUS A FEE with a negotiated
Guaranteed Maximum Price

AGREEMENT made as of the Nineteenth day of September in the year Two Thousand
Three
(In words, indicate day, month and year)

BETWEEN the Owner:
(Name, address and other information)
                                        PEONY ACQUISITIONS, LLC
                                        a Delaware limited liability company
                                        2036 Washington Street
                                        Hanover, MA 02339

and the Contractor:
(Name, address and other information)
                                        LEDCOR PETTY CONSTRUCTION, L.P.
                                        9466 Black Mountain Road, Suite 200
                                        San Diego, CA 92126

The Project is:
(Name and location)
                                        NEUROCRINE BIOSCIENCES
                                        12770, 12780 and 12790 El Camino Real
                                        San Diego, CA 92130

The Architect is:
(Name, address and other information)
                                        DOWLER-GRUMAN ARCHITECTS
                                        445 West Ash Street
                                        San Diego, CA 92101

The Owner and Contractor agree as follows.

ARTICLE 1 THE CONTRACT DOCUMENTS

    The Contract Documents consist of this Agreement, Conditions of the Contract
    (General, Supplementary and other Conditions), Drawings, Specifications,
    Addenda issued prior to execution of this Agreement, other documents listed
    in this Agreement and Modifications issued after execution of this
    Agreement; these form the Contract, and are as fully a part of the Contract
    as if attached to this Agreement or repeated herein. The Contract represents
    the entire and integrated agreement between the parties hereto and
    supersedes prior negotiations, representations or agreements, either written
    or oral. An enumeration of the Contract Documents, other than Modifications,
    appears in Article 15. If anything in the other Contract Documents is
    inconsistent with this Agreement, this Agreement shall govern. These
    documents shall be individually listed at the time the Guaranteed Maximum
    Price (GMP) is established and incorporated by Change Order.

ARTICLE 2 THE WORK OF THIS CONTRACT

(C) 1920, 1925, 1951, 1961, 1963, 1967, 1974, 1978, 1987, (C) 1997 by The
American Institute of Architects. Reproduction of the material herein or
substantial quotation of its provisions without written permission of the AIA
violates the copyright laws of the United States and will subject he violate to
legal prosecution.
WARNING: Unlicensed photocopying violates U.S. copyright laws and will subject
the violator to legal prosecution. This document was electronically produced
with permission of the AIA and can be reproduced in accordance with your license
without violation until the date of expiration as noted below. User Document:
a111-1977 neurocrine cost of work 9.12 -- 9/19/2003. AIA License Number 1013349,
which expires on 2/2/2004.

[AIA LOGO]

(C)1997 AIA(R)
AIA DOCUMENT A111 - 1997
OWNER - CONTRACTOR AGREEMENT

The American Institute of Architects
1735 New York Avenue, N.W.
Washington, D.C. 20006-5292

                                                                               1

<PAGE>

THIS DOCUMENT HAS IMPORTANT LEGAL CONSEQUENCES. CONSULTATION WITH AN ATTORNEY IS
ENCOURAGED WITH RESPECT TO ITS COMPLETION OR MODIFICATION. AUTHENTICATION OF
THIS ELECTRONICALLY DRAFTED AIA DOCUMENT MAY BE MADE BY USING AIA DOCUMENT D401.

This document is not intended for use in competitive bidding.

AIA Document A201-1997, General Conditions of the Contract for Construction, is
adopted in this document by reference. Do not use with other general conditions
unless this document is modified.

This document has been approved and endorsed by The Associated General
Contractors of America.

    The Contractor shall fully execute the Work described in the Contract
    Documents, except to the extent specifically indicated in the Contract
    Documents to be the responsibility of others

    2.1 The "Work" consists of construction of Phase I: Two buildings totaling
    200,000 SF on 13.4 acres with all related sitework. Building 1 totals
    4-stories consisting of 3-stories of administration, executive offices,
    cafeteria and an auditorium over a 1-story parking garage. Building 2 totals
    5-stories consisting of 3-stories of biotech research and development
    laboratories over a 2-story parking garage.

    2.2 The Contractor shall provide critical path scheduling, preliminary
    budgets value engineering, and review of construction issues throughout the
    pre-construction phase as part of its basic services. This cost of this
    service shall be included in the Contractor's General Conditions - Reference
    Attachment A and is part of the GMP.

    2.3 HVAC/PLUMBING: Weather Engineering has been selected on a negotiated
    basis to provide HVAC/Plumbing systems work and related design for the
    Project. They shall provide a guaranteed maximum subcontract for their
    portion of the Work and related design to the Contractor.

    2.3.1 After a subcontract with Weather Engineering is executed, which
    outlines the terms, conditions and scope of their work, a Change Order
    between the Owner and Contractor will be executed that mirrors the terms,
    conditions, cost and scope of work included in the subcontract.

    2.3.2 Prior to the execution of a Subcontract between Weather Engineering
    and the Contractor, the Owner shall have the opportunity to participate in
    the negotiations of that Subcontract. The Subcontract shall not be executed
    by Contractor without the express written consent of the Owner and Owner's
    knowledge and consent of the terms and conditions contained therein. Owner
    acknowledges that it has been involved with Subcontractor and its engineers
    during the design process and has assisted in the development and review of
    the design criteria.

    2.3.3. If terms and conditions of the Subcontract between Weather
    Engineering and the Contractor contradict those of the Contract between the
    Owner and Contractor the terms and conditions of the Subcontract shall
    prevail in interpreting the Owner and Contractor Agreement in all matters
    related to the Subcontract Work, the Subcontract, and Subcontractors
    performance thereunder.

    2.4 ELECTRICAL: Neal Electric will be pre-selected on a negotiated basis to
    provide the electrical system work and related design for the Project. They
    shall provide a guaranteed maximum subcontract for their portion of the Work
    and related design to the Contractor.

    2.4.1 After a subcontract with Neal Electric is executed, which outlines the
    terms, conditions and scope of their work, a Change Order between the Owner
    and Contractor will be executed that mirrors the terms, conditions, cost and
    scope of work included in the subcontract.

    2.4.2 Prior to the execution of a Subcontract between Neal Electric and the
    Contractor, the Owner shall have the opportunity to participate in the
    negotiations of that Subcontract. The Subcontract shall not be executed by
    Contractor without the express written consent of the Owner and Owner's
    knowledge and consent of the

(C) 1920, 1925, 1951, 1961, 1963, 1967, 1974, 1978, 1987, (C) 1997 by The
American Institute of Architects. Reproduction of the material herein or
substantial quotation of its provisions without written permission of the AIA
violates the copyright laws of the United States and will subject he violate to
legal prosecution.
WARNING: Unlicensed photocopying violates U.S. copyright laws and will subject
the violator to legal prosecution. This document was electronically produced
with permission of the AIA and can be reproduced in accordance with your license
without violation until the date of expiration as noted below. expiration as
noted below. expiration as noted below.  User Document: a111-1977 neurocrine
cost of work 9.12 -- 9/19/2003. AIA License Number 1013349, which expires on
2/2/2004.

[AIA LOGO]

(C)1997 AIA(R)
AIA DOCUMENT A111 - 1997
OWNER - CONTRACTOR AGREEMENT

The American Institute of Architects
1735 New York Avenue, N.W.
Washington, D.C. 20006-5292

                                                                               2

<PAGE>

THIS DOCUMENT HAS IMPORTANT LEGAL CONSEQUENCES. CONSULTATION WITH AN ATTORNEY IS
ENCOURAGED WITH RESPECT TO ITS COMPLETION OR MODIFICATION. AUTHENTICATION OF
THIS ELECTRONICALLY DRAFTED AIA DOCUMENT MAY BE MADE BY USING AIA DOCUMENT D401.

This document is not intended for use in competitive bidding.

AIA Document A201-1997, General Conditions of the Contract for Construction, is
adopted in this document by reference. Do not use with other general conditions
unless this document is modified.

This document has been approved and endorsed by The Associated General
Contractors of America.

    terms and conditions contained therein. Owner acknowledges that it has been
    involved with Subcontractor and its engineers during the design process and
    has assisted in the development and review of the design.

    2.4.3 If terms and conditions of the Subcontract between Neal Electric and
    the Contractor contradict those of the Contract between the Owner and
    Contractor the terms and conditions of the Subcontract shall prevail in
    interpreting the Owner and Contractor Agreement in all matters related to
    the Subcontract Work, the Subcontract, and Subcontractors performance
    thereunder.

    2.5 The Contractor shall provide to the Owner three (3) copies of a complete
    project closeout manual which shall describe all critical components of the
    Project, as well as as-built documents of all systems and underground
    utilities, air balance reports, installation documents, warranties, and
    operations and maintenance manuals.

ARTICLE 3 RELATIONSHIP OF THE PARTIES

    The Contractor accepts the relationship of trust and confidence established
    by this Agreement and covenants with the Owner to cooperate with the
    Architect and exercise the Contractor's skill and judgment in furthering the
    interests of the Owner; to furnish efficient business administration and
    supervision; to furnish at all times an adequate supply of workers and
    materials; and to perform the Work in an expeditious and economical manner
    consistent with the Owner's interests. The Owner agrees to furnish and
    approve, in a timely manner, information required by the Contractor and to
    make payments to the Contractor in accordance with the requirements of the
    Contract Documents.

    3.1 The Owner acknowledges that the services to be provided by the
    Contractor under this Agreement, with the exception of Mechanical and
    Electrical Work, shall not constitute the Contractor as an Architect or
    Engineer nor impose on the Contractor any obligation to assume or perform
    the professional responsibilities, duties, services and activities for which
    the Owner has contracted with the Architect or others: nor shall the Owner
    impose on the Contractor any liability with respect thereto, except as
    expressly provided herein.

    3.2 The Contractor shall not be responsible or liable in connection with the
    design of the Work, with the exception of Mechanical and Electrical Work,
    nor for the failure. errors or omissions of the Architect, or others hired
    by the Architect or Owner. The Contractor, in performing its duties, shall
    exercise a standard of care that is customary and appropriate for an
    experienced general contractor that has contracted for the construction of a
    project that is similar to the Project ("Appropriate Care"). The Contractor
    shall review, and use Appropriate Care in reviewing, the Drawings and
    Specifications, and shall provide written notice to the Owner if the
    Contractor becomes aware of any failure, errors or omissions, but does not
    relieve the Architect or others from any responsibilities for services
    contained in their agreements between themselves and the Owner. The
    Contractor shall not incur any liability for nonperformance of such services
    by others hired by or directed by Owner.

    3.3 The Contractor shall perform the Work hereunder as an independent
    contractor, retaining complete control over its personnel and operations
    conforming to all statutory requirements with respect to its employees, and
    providing all appropriate employee benefits. Neither the Contractor nor its
    employees shall be, in any sense, the Owner's employees or agents, or have
    any authority to bind the Owner in any way. During the progress of the Work
    the Contractor shall consult frequently with the

(C) 1920, 1925, 1951, 1961, 1963, 1967, 1974, 1978, 1987, (C) 1997 by The
American Institute of Architects. Reproduction of the material herein or
substantial quotation of its provisions without written permission of the AIA
violates the copyright laws of the United States and will subject he violate to
legal prosecution.
WARNING: Unlicensed photocopying violates U.S. copyright laws and will subject
the violator to legal prosecution. This document was electronically produced
with permission of the AIA and can be reproduced in accordance with your license
without violation until the date of expiration as noted below. User Document:
a111-1977 neurocrine cost of work 9.12 -- 9/19/2003. AIA License Number 1013349,
which expires on 2/2/2004.

[AIA LOGO]

(C)1997 AIA(R)
AIA DOCUMENT A111 - 1997
OWNER - CONTRACTOR AGREEMENT

The American Institute of Architects
1735 New York Avenue, N.W.
Washington, D.C. 20006-5292

                                                                               3

<PAGE>

THIS DOCUMENT HAS IMPORTANT LEGAL CONSEQUENCES. CONSULTATION WITH AN ATTORNEY IS
ENCOURAGED WITH RESPECT TO ITS COMPLETION OR MODIFICATION. AUTHENTICATION OF
THIS ELECTRONICALLY DRAFTED AIA DOCUMENT MAY BE MADE BY USING AIA DOCUMENT D401.

This document is not intended for use in competitive bidding.

AIA Document A201-1997, General Conditions of the Contract for Construction, is
adopted in this document by reference. Do not use with other general conditions
unless this document is modified.

This document has been approved and endorsed by The Associated General
Contractors of America.

    Owner's designated representative in order to coordinate the specific Work
    being done with the Owner's overall requirements.

    3.4 The Contractor agrees that the Owner may assign all of its rights and
    obligations under this Agreement to any successor owner or occupant of the
    property where the Project is located, and upon such assignment and the
    assumption by such assignee of Owner's obligations hereunder. the Owner
    hereunder shall be released from all of its obligations hereunder.

    3.5 The Contractor understands and agrees that the Owner has appointed
    Neuorcine Biosciences, Inc. (the "Construction Manager") as its Construction
    Manager in connection with the Project. Construction Manager shall have full
    authority to act for the Owner in connection with the Project, and the
    Contractor shall be entitled to rely on all notices, communications,
    information and documentation provided by the Construction Manager as and to
    the extent the Contractor could so rely if such notices, communications,
    information or documentation were provided by the Owner.

ARTICLE 4 DATE OF COMMENCEMENT AND SUBSTANTIAL COMPLETION

    4.1 The date of commencement of the Work shall be the date of this Agreement
    unless a different date is stated below or provision is made for the date to
    be fixed in a notice to proceed issued by the Owner.
    (Insert the date of commencement, if it differs from the date of this
    Agreement or, if applicable, state that the date will be fixed in a notice
    to proceed.)

    4.1.1 The date of commencement shall be June 6. 2003.

    4.1.2. The Construction Schedule shall be in a detailed precedence-style
    critical path method (CPM) satisfactory to the Owner on paper and in
    electronic format and shall also (1) provide a graphic representation of all
    major activities and events, including links between activities, that will
    occur during performance of the Work: (2) identify each phase of
    construction and occupancy; and (3) set forth dates that are critical in
    ensuring the timely and orderly completion of the Work in accordance with
    the requirements of the Contract Documents (hereinafter referred to as
    "Milestone Dates"). Upon review and acceptance by the Owner of the Milestone
    Dates, the Construction Schedule shall be part of the Contract Documents. If
    not accepted, the Contractor promptly shall review the Construction Schedule
    in accordance with the reasonable recommendations of the Owner and
    resubmitted for acceptance. The Contractor shall monitor the progress of the
    work for conformance with the requirements of the Construction Schedule and
    shall promptly advise the Owner of any delays or potential delays. The
    accepted Construction Schedule shall be updated to reflect actual conditions
    as set forth in Subparagraph 3.10.1 of the General Condition or if requested
    by the Owner. In the event any such progress report indicates any delays,
    the Contractor shall propose an affirmative plan to correct the delay,
    including overtime and/or additional labor, if necessary. In no event shall
    any progress report constitute an adjustment in the Contract Time, any
    Milestone Date, or the Contract Sum, unless any such adjustment is agreed to
    in writing by the Owner and authorize pursuant to Change Order.

    4.1.3 The Work to be performed under this Agreement shall be performed in
    increments as described in Paragraph 5.2 of this Agreement. The Work on each
    increment shall not be commenced until permits required by the City of San
    Diego

(C) 1920, 1925, 1951, 1961, 1963, 1967, 1974, 1978, 1987, (C) 1997 by The
American Institute of Architects. Reproduction of the material herein or
substantial quotation of its provisions without written permission of the AIA
violates the copyright laws of the United States and will subject he violate to
legal prosecution.
WARNING: Unlicensed photocopying violates U.S. copyright laws and will subject
the violator to legal prosecution. This document was electronically produced
with permission of the AIA and can be reproduced in accordance with your license
without violation until the date of expiration as noted below. User Document:
a111-1977 neurocrine cost of work 9.12 -- 9/19/2003. AIA License Number 1013349,
which expires on 2/2/2004.

[AIA LOGO]

(C)1997 AIA(R)
AIA DOCUMENT A111 - 1997
OWNER - CONTRACTOR AGREEMENT

The American Institute of Architects
1735 New York Avenue, N.W.
Washington, D.C. 20006-5292

                                                                               4

<PAGE>

THIS DOCUMENT HAS IMPORTANT LEGAL CONSEQUENCES. CONSULTATION WITH AN ATTORNEY IS
ENCOURAGED WITH RESPECT TO ITS COMPLETION OR MODIFICATION. AUTHENTICATION OF
THIS ELECTRONICALLY DRAFTED AIA DOCUMENT MAY BE MADE BY USING AIA DOCUMENT D401.

This document is not intended for use in competitive bidding.

AIA Document A201-1997, General Conditions of the Contract for Construction, is
adopted in this document by reference. Do not use with other general conditions
unless this document is modified.

This document has been approved and endorsed by The Associated General
Contractors of America.

    (the "City") for the increments have been obtained. Within five (5) days
    after the Contractor's receipt of the Owner's written authorization and the
    required permit(s). the Contractor shall commence the Work authorized by the
    Owner.

    If, prior to commencement of the Work, the Owner requires time to file
    mortgages, mechanic's liens and other security interests, the Owner's time
    requirement shall be as follows:

    4.2 The Contract Time shall be measured from the date of commencement.

    4.3 The Contractor shall achieve Substantial Completion of the entire Work
    not later than days from the date of commencement, or as follows:
    (Insert number of calendar days. Alternatively, a calendar date may be used
    when coordinated with the date of commencement. Unless stated elsewhere in
    the Contract Documents, insert any requirements for earlier Substantial
    Completion of certain portions of the Work.)

    4.3.1 The dates of Substantial Completion shall be determined in accordance
    with a Construction Schedule mutually agreed to by the Owner and Contractor
    and stipulated by Change Order when the GMP is established. Owner and
    Contractor agree that the Substantial Completion dates shall be no later
    than the following:

        Building 1: June 1, 2004
        Building 2: August 28, 2004

    The foregoing dates are subject to adjustment if the following criteria are
    not met:

        Building 1: Plans must be substantially complete and owner must release
                    contractor to order all long lead items no later than
                    October 10, 2003 Tenant Improvement Permit must be obtained
                    no later than November 10, 2003.

        Building 2: Plans must be substantially complete and owner must release
                    contractor to order all long lead items no later than
                    November 10, 2003.
                    Tenant Improvement Permit must be obtained no later than
                    December 10, 2003.

4.3.2 Included in the construction time and Guaranteed Maximum Price are zero
(0) work days which are anticipated to be lost due to inclement weather. The
Contractor will advise the Owner monthly as to the status of the delays claimed
to be lost due to inclement weather. If the accumulated number of lost days
exceeds the allotment of zero (0) days, the Contractor shall have the right to
submit a claim for additional time or additional direct out-of-pocket General
Conditions costs, or both, in accordance with the applicable provisions of the
General Conditions Paragraph 4.3.

4.4 The Owner and the Contractor acknowledge and agree that the Owner will
suffer substantial damages as a result of delays in completion of construction.
In the event of a delay in the completion of construction, the Owner and the
Contractor agree that it would be impractical and extremely difficult to
estimate the economic and other damages that Owner may suffer. Therefore, the
Owner and the contractor agree that a reasonable estimate of the damages the
owner may suffer solely as a result of such delay is and shall be an amount
equal to the liquidated damages amount, and the Contractor shall be liable to
the Owner for the liquidated damages amount as set forth above.

4.5 Liquidated Damages: If the Work is not substantially completed within thirty
(30)days after the dates specified in Paragraph 4.3 hereunder for Buildings 1
and 2, respectively. subject to excusable delays as provided for in this
contract, the Owner shall be entitled to receive as liquidated damages for such
default the sum of $6,000.00 for each day beyond the contract time that the Work
is not substantially completed for Building 1 and the sum of $4,000.00 for each
day beyond the contract time that the Work is not substantially completed for
Building 2. Contractor and Owner agree that it would be extremely

(C) 1920, 1925, 1951, 1961, 1963, 1967, 1974, 1978, 1987, (C) 1997 by The
American Institute of Architects. Reproduction of the material herein or
substantial quotation of its provisions without written permission of the AIA
violates the copyright laws of the United States and will subject he violate to
legal prosecution.
WARNING: Unlicensed photocopying violates U.S. copyright laws and will subject
the violator to legal prosecution. This document was electronically produced
with permission of the AIA and can be reproduced in accordance with your license
without violation until the date of expiration as noted below, User Document:
a111-1977 neurocrine cost of work 9.12 -- 9/19/2003. AIA License Number 1013349,
which expires on 2/2/2004.

[AIA LOGO]

(C)1997 AIA(R)
AIA DOCUMENT A111 - 1997
OWNER - CONTRACTOR AGREEMENT

The American Institute of Architects
1735 New York Avenue, N.W.
Washington, D.C. 20006-5292

                                                                               5

<PAGE>

THIS DOCUMENT HAS IMPORTANT LEGAL CONSEQUENCES. CONSULTATION WITH AN ATTORNEY IS
ENCOURAGED WITH RESPECT TO ITS COMPLETION OR MODIFICATION. AUTHENTICATION OF
THIS ELECTRONICALLY DRAFTED AIA DOCUMENT MAY BE MADE BY USING AIA DOCUMENT D401.

This document is not intended for use in competitive bidding.

AIA Document A201-1997, General Conditions of the Contract for Construction, is
adopted in this document by reference. Do not use with other general conditions
unless this document is modified.

This document has been approved and endorsed by The Associated General
Contractors of America.

impractical and difficult to estimate the amount of damages that Owner might
suffer in the event of the Contractor's default under Paragraph 4.3. The parties
hereby agree that the foregoing sums represent fair and reasonable estimates of
said damages.

4.5.1 Contractor may pay liquidated damages from contingency funds or any cost
savings. Contractor shall use its best efforts to recover liquidated damages
from its subcontractors.

4.5.2 In no case shall the total Liquidated Damages Amount payable by Contractor
exceed fifty percent (50%) of the Contractor's Fee.

    , subject to adjustments of this Contract Time as provided in the Contract
    Documents.
    (Insert provisions, if any, for liquidated damages relating to failure lo
    complete on time, or for bonus payments for early completion of the Work.)

ARTICLE 5 BASIS FOR PAYMENT

    5.1   CONTRACT SUM

    5.1.1 The Owner shall pay the Contractor for the Contractor's performance of
    the work and all other obligations of Contractor hereunder with respect to
    the Work, as Owner's maximum cost, the least of the following amounts:

    (a) The Cost of the Work as defined in Article 7, including Contractor's
    General Conditions Cost. (Reference Attachment A) plus the Contractor's Fee.

    (b) The sum set forth in those Change Orders to be executed by the Owner and
    Contractor from time to time during the course of the Work, which establish
    the Guaranteed Maximum Price (GMP). and all other obligations of Contractor
    hereunder with respect to the Work.

    5.1.1.1 For changes in the Work the Contractor's Fee shall be three percent
    (3%) times the sum of the cost of the work related to each change, including
    cost of any applicable General Conditions and insurance.

    5.1.2 The Contractor's Fee is:
    (State a lump sum, percentage of Cost of the Work or other provision for
    determining the Contractor's Fee, and describe the method of adjustment of
    the Contractor's Fee for changes in the Work.)

    The Contractor's Fee shall be three percent (3%) times the cost of the Work.
    excluding the cost of liability insurance, subject to adjustment for changes
    in the Work.

    5.2 GUARANTEED MAXIMUM PRICE

    5.2.1
    (Insert specific provisions if the Contractor is to participate in any
    savings.)

5.2.1.1 At the time this Agreement is entered into, a Guaranteed Maximum Price
(GMP) has not been finalized because final drawings and specifications have not
been

(C) 1920, 1925, 1951, 1961, 1963, 1967, 1974, 1978, 1987, (C) 1997 by The
American Institute of Architects. Reproduction of the material herein or
substantial quotation of its provisions without written permission of the AIA
violates the copyright laws of the United States and will subject he violate to
legal prosecution.
WARNING: Unlicensed photocopying violates U.S. copyright laws and will subject
the violator to legal prosecution. This document was electronically produced
with permission of the AIA and can be reproduced in accordance with your license
without violation until the date of expiration as noted below, User Document:
a111-1977 neurocrine cost of work 9.12 -- 9/19/2003. AIA License Number 1013349,
which expires on 2/2/2004.

[AIA LOGO]

(C)1997 AIA(R)
AIA DOCUMENT A111 - 1997
OWNER - CONTRACTOR AGREEMENT

The American Institute of Architects
1735 New York Avenue, N.W.
Washington, D.C. 20006-5292

                                                                               6

<PAGE>

THIS DOCUMENT HAS IMPORTANT LEGAL CONSEQUENCES. CONSULTATION WITH AN ATTORNEY IS
ENCOURAGED WITH RESPECT TO ITS COMPLETION OR MODIFICATION. AUTHENTICATION OF
THIS ELECTRONICALLY DRAFTED AIA DOCUMENT MAY BE MADE BY USING AIA DOCUMENT D401.

This document is not intended for use in competitive bidding.

AIA Document A201-1997, General Conditions of the Contract for Construction, is
adopted in this document by reference. Do not use with other general conditions
unless this document is modified.

This document has been approved and endorsed by The Associated General
Contractors of America.

completed. The parties intend to establish one GMP which shall constitute a
maximum price for that portion of the Work consisting of the Shell/Site
Improvements ("Shell/Site GMP") and a second GMP which shall constitute a
maximum price for that portion of the Work consisting of the Tenant Improvements
("TI GMP"). Each GMP shall include the applicable portion of the Contractor's
Fee and General Conditions. It is further anticipated that the Owner may
authorize the Contractor to proceed incrementally with the Work based on the
Contractor's receipt of documents from the Architect, pricing, and trade bids
acceptable to the Owner. In such case, a Change Order shall be executed
consistent with the cost and scope of the incremental work.

5.2.1.2 After both parties have signed this Agreement, Owner shall cause
drawings and specifications ("Plans") for the Project to be prepared by the
Architect containing sufficient detail to allow the Project to be bid by
Contractor.

5.2.1.3 Within 30 days after receipt of the Plans, Contractor shall obtain bids
from subcontractors and provide Owner with a proposed construction schedule and
a preliminary cost breakdown of the proposed GMP, with reasonably detailed line
items, including the Construction Contingency, Contractor's Fee and Contractor's
General Conditions. The cost breakdown will be divided into line items for
information only; any guarantee applies only to the total amount of the GMP and
Contractor's General Conditions, not to individual line items, subtrade or other
specific element of the work or cost breakdown.

5.2.1.4 Within 15 days after receipt of the proposed GMP and construction
schedule, Owner shall either approve or disapprove of same, in which later case
Owner and Contractor shall meet and confer within 3 days after the contractor'
receipt of the notice of disapproval, Owner may require Contractor to re-bid
selected major subcontracts (i.e., subcontracts for which the total estimate
exceeds $50,000) with designated subcontractors reasonably acceptable to
Contractor, in which event Contractor shall provide Owner with a revised GMP and
construction schedule within 15 days after Owner's request.

5.2.1.5 If the GMP has not been agreed upon within 90 days after the Contractor
has submitted the proposed GMP to the Owner, and work has commenced at the
project site, the project shall continue on a Cost of the Work Plus a Fee basis.

5.2.1.5.1 At any time, with mutual consent of the Owner and Contractor, the
Contract may be converted, in part or in full, to a Fixed Lump Sum.

5.2.1.6 Upon mutual approval of the GMP, Owner and Contractor shall sign a
change order to this Agreement establishing the GMP, attaching the line item
cost breakdown (for information), and identifying the Plans and other Contract
Documents as referenced in Article 15.

5.2.1.7 The GMP will contain a "construction contingency" equal to two percent
(2%) of the estimated cost of the Work, supported by Subcontractor bids to the
extent possible, but not including any subsequent change orders. It is
understood and agreed to by the Contractor and the Owner that the "construction
contingency" has been included for sole use by Contractor to pay any costs (as
described in Article 7 "Costs to be Reimbursed") incurred to complete the scope
of work as defined by the contract documents which were used to establish the
GMP and not subsequent documents. Such "construction contingency" will be deemed
the fixed amount available for the

(C) 1920, 1925, 1951, 1961, 1963, 1967, 1974, 1978, 1987, (C) 1997 by The
American Institute of Architects. Reproduction of the material herein or
substantial quotation of its provisions without written permission of the AIA
violates the copyright laws of the United States and will subject he violate to
legal prosecution.
WARNING: Unlicensed photocopying violates U.S. copyright laws and will subject
the violator to legal prosecution. This document was electronically produced
with permission of the AIA and can be reproduced in accordance with your license
without violation until the date of expiration as noted below, expiration as
noted below. expiration as noted below. User Document: a111-1977 neurocrine cost
of work 9.12 -- 9/19/2003. AIA License Number 1013349, which expires on
2/2/2004.

[AIA LOGO]

(C)1997 AIA(R)
AIA DOCUMENT A111 - 1997
OWNER - CONTRACTOR AGREEMENT

The American Institute of Architects
1735 New York Avenue, N.W.
Washington, D.C. 20006-5292

                                                                               7

<PAGE>

THIS DOCUMENT HAS IMPORTANT LEGAL CONSEQUENCES. CONSULTATION WITH AN ATTORNEY IS
ENCOURAGED WITH RESPECT TO ITS COMPLETION OR MODIFICATION. AUTHENTICATION OF
THIS ELECTRONICALLY DRAFTED AIA DOCUMENT MAY BE MADE BY USING AIA DOCUMENT D401.

This document is not intended for use in competitive bidding.

AIA Document A201-1997, General Conditions of the Contract for Construction, is
adopted in this document by reference. Do not use with other general conditions
unless this document is modified.

This document has been approved and endorsed by The Associated General
Contractors of America.

Contractor's use to cover costs intended to be included in the Work, but not
reasonably foreseeable by the Contractor at the time of bidding, including,
without limitations, Change Orders issued due to refinements of details of
design within the scope and standards of quality and quantities shown in Final
Drawings and Specifications for the Work (as opposed to changes in the scope of
the Work), Contractor shall not seek any increase in the GMP (a) on account of
any labor dispute within Contractor's control involving Contractor or
Subcontractors arising during the period the Work is to be performed, (b) by
reason of the breach, fault, neglect, bankruptcy, insolvency, or any failure of
performance not excused hereunder, by Contractor or any Subcontractor, (c) for
costs which are intended to be included in the "construction contingency" or (d)
as a result of the existence of any job site condition which should reasonably
have been discovered or foreseen by Contractor through the exercise of
reasonable diligence.

5.2.1.7.1 The Construction Contingency will be used to pay for added General
Conditions costs due to "normal" weather delays. However, any other costs due to
weather delays will require a change order. For purposes of the foregoing,
"normal" shall be defined as the average number of rainy days (rain exceeding
1/4" per day) during the last 50 years in the City of San Diego during the
period of time directly correlating to the delay period. By way of example, if
the project is delayed by rain for ten days during the month of May and the
average number of rainy days correlating to the period of delay is seven, the
Contractor shall be entitled to General Conditions compensation for three of the
ten days of delay.

5.2.1.8 The "Construction Contingency" shall not be used for changes and/or
additions to the scope of work, as outlined in the contract documents that were
used to establish the GMP, or to pay for costs of items specifically excluded
from the GMP. These items will be covered by separate change order and will
have no effect on the contingency.

5.2.1.9 If any subsequent document, which was not included in the Contract
Documents used to establish the GMP, is issued and contains clarifications
or evolutionary information which creates a cost impact in excess of $2,000
per occurrence shall be deemed to be a change in scope of work, and shall not be
covered or paid for by contingency funds, in whole or in part. The construction
contingency is not to be used to cover costs related to "evolution" of the
contract documents that were used to establish the GMP.

5.2.1.10 Construction contingency funds shall not be used to pay for costs
related to changes or clarifications of the work due to the architect's or
other's errors or omissions or changes and additions required by building
departments, fire departments or other governing agencies. Such costs will be
covered by separate change order.

5.2.1.11 The Guaranteed Maximum Price shall be calculated as the sum of the
following items:

(a) the General Conditions Amount (as adjusted in accordance with this
agreement);

(b) the sum of the fixed lump sum prices for all subcontracts approved by the
Owner;

(c) estimated amounts and/or allowance amounts for cost of work included in the
Contract Documents but not included in Subcontracts;

(C) 1920, 1925, 1951, 1961, 1963, 1967, 1974, 1978, 1987, (C) 1997 by The
American Institute of Architects. Reproduction of the material herein or
substantial quotation of its provisions without written permission of the AIA
violates the copyright laws of the United States and will subject he violate to
legal prosecution.
WARNING: Unlicensed photocopying violates U.S. copyright laws and will subject
the violator to legal prosecution. This document was electronically produced
with permission of the AIA and can be reproduced in accordance with your license
without violation until the date of expiration as noted below, User Document:
a111-1977 neurocrine cost of work 9.12 -- 9/19/2003. AIA License Number 1013349,
which expires on 2/2/2004.

[AIA LOGO]

(C)1997 AIA(R)
AIA DOCUMENT A111 - 1997
OWNER - CONTRACTOR AGREEMENT

The American Institute of Architects
1735 New York Avenue, N.W.
Washington, D.C. 20006-5292

                                                                               8

<PAGE>

THIS DOCUMENT HAS IMPORTANT LEGAL CONSEQUENCES. CONSULTATION WITH AN ATTORNEY IS
ENCOURAGED WITH RESPECT TO ITS COMPLETION OR MODIFICATION. AUTHENTICATION OF
THIS ELECTRONICALLY DRAFTED AIA DOCUMENT MAY BE MADE BY USING AIA DOCUMENT D401.

This document is not intended for use in competitive bidding.

AIA Document A201-1997, General Conditions of the Contract for Construction, is
adopted in this document by reference. Do not use with other general conditions
unless this document is modified.

This document has been approved and endorsed by The Associated General
Contractors of America.

(d) the Contractor's Contingency of 2% of the amounts specified in (a) and (b)
and (c);

(e) Contractor's Liability Insurance in the amount of 1% of the amounts
specified in (a) and (b) and (c) and (d);

(f) Contractor's fee for the amounts specified in (a) and (b) and (c) and (d).

The GMP shall be subject to adjustment as set forth herein.

    5.2.2 The Guaranteed Maximum Price is based on the following alternates, if
    any, which are described in the Contract Documents and are hereby accepted
    by the Owner:
    (State the numbers or other identification of accepted alternates. If
    decisions on other alternates are to be made by the Owner subsequent to the
    execution of this Agreement, attach a schedule of such other alternates
    showing the amount for each and the date when the amount expires.)

    To be listed at the time the Guaranteed Maximum Price (GMP) is established,
    and incorporated by Change Order.

    5.2.3 Unit prices, if any, are as follows:

    To be listed at the time the Guaranteed Maximum Price (GMP) is established,
    and incorporated by Change Order.

    5.2.4 Allowances, if any, are as follows:
    (Identify and state the amounts of any allowances, and state whether they
    include labor, materials, or both.)

    Any additional allowances will be listed at the time the Guaranteed Maximum
    Price (GMP) is established, and incorporated by Change Order.

    5.2.4.1 Any allowances included in this Contract shall include the estimated
    cost of material, equipment, labor and any other costs required to complete
    the work for which the allowance was established. When the actual cost of
    any allowance item is determined the contract amount will be adjusted by
    Change Order for the difference in actual cost versus the allowance amount.

    5.2.4.2 The GMP shall include an allowance of .25% (.0025) times the total
    cost of the work for anticipated cost of warranty work, to the extent cost
    of same is not included in subcontracts, to be performed after final
    completion and before the end of the one year warranty period. This
    subsection 5.2.4.2 shall not limit Contractor's liability for warranty
    claims.

    5.2.5 Assumptions, if any, on which the Guaranteed Maximum Price is based
    are as follows: To be listed at the time the Guaranteed Maximum Price (GMP)
    is established, and incorporated by Change Order.

    5.2.6 To the extent that the Drawings and Specifications are anticipated to
    require further development by the Architect, the Contractor may provide in
    the Guaranteed Maximum Price for such further development consistent with
    the Contract Documents and reasonably inferable therefrom. Such further
    development does not include such things as changes in scope, systems, kinds
    and quality of materials, finishes or equipment, all of which, if required,
    shall be incorporated by Change Order. Cost of such further development will
    be included in the GMP only if clearly and specifically identified and
    priced by Contractor in the Change Order that establishes the GMP.

    5.2.7 During the course of preparation of the Final Drawings and
    Specifications, the Owner will cause the Architect to prepare and deliver to
    the Contractor additional and

(C) 1920, 1925, 1951, 1961, 1963, 1967, 1974, 1978, 1987, (C) 1997 by The
American Institute of Architects. Reproduction of the material herein or
substantial quotation of its provisions without written permission of the AIA
violates the copyright laws of the United States and will subject he violate to
legal prosecution.
WARNING: Unlicensed photocopying violates U.S. copyright laws and will subject
the violator to legal prosecution. This document was electronically produced
with permission of the AIA and can be reproduced in accordance with your license
without violation until the date of expiration as noted below. User Document:
a111-1977 neurocrine cost of work 9.12 -- 9/19/2003. AIA License Number 1013349,
which expires on 2/2/2004.

[AIA LOGO]

(C)1997 AIA(R)
AIA DOCUMENT A111 - 1997
OWNER - CONTRACTOR AGREEMENT

The American Institute of Architects
1735 New York Avenue, N.W.
Washington, D.C. 20006-5292

                                                                               9

<PAGE>

THIS DOCUMENT HAS IMPORTANT LEGAL CONSEQUENCES. CONSULTATION WITH AN ATTORNEY IS
ENCOURAGED WITH RESPECT TO ITS COMPLETION OR MODIFICATION. AUTHENTICATION OF
THIS ELECTRONICALLY DRAFTED AIA DOCUMENT MAY BE MADE BY USING AIA DOCUMENT D401.

This document is not intended for use in competitive bidding.

AIA Document A201-1997, General Conditions of the Contract for Construction, is
adopted in this document by reference. Do not use with other general conditions
unless this document is modified.

This document has been approved and endorsed by The Associated General
Contractors of America.

    revised drawings and specifications ("Supplemental Documents") which shall
    supplement, particularize, refine and detail the Schematic Information as
    necessary to furnish the Contractor with a set of Final Drawings and
    Specifications for the Work. The Contractor shall assist the Owner and the
    Architect in the development of Final Drawings and Specifications by
    reviewing such Supplemental Documents and providing estimates regarding the
    impact of such Supplemental Documents on the time of construction, the cost
    of construction and functional performance. The Contractor shall promptly
    advise the Owner and Architect if. in the opinion of. the Contractor, such
    Supplemental Documents, modify the scope of the Work as shown on the
    Schematic Design and the Schematic Estimate, including reasonable detail to
    permit the Owner to evaluate such opinion. The Owner. Contractor and
    Architect shall meet at least weekly during the course of preparing the
    Final Drawings and Specifications. The Contractor shall report on its review
    of Supplemental Documents at such meetings, and specific recommendations
    shall be documented as part of the meeting minutes. As Supplemental
    Documents are reviewed and approved, the scope of the Work shall be modified
    and supplemented to include such Supplemental Documents. The parties intend
    that this process will provide timely information to the Owner to permit the
    Owner to direct the course of design development in order to ensure that the
    scope of the Work set forth in the Schematic Design is not changed to either
    affect GMP or to delay Substantial Completion of the Work without the
    express consent of the Owner.

    5.2.8 Within three (3) weeks after the Final Drawings and Specifications
    have been approved and the building permit for the Work has been obtained,
    the Owner and Contractor shall determine the GMP and document such GMP in a
    written supplement to this Agreement.

    5.2.9 No work shall be commenced by the Contractor or its Subcontractors
    without the Owner's written authorization.

ARTICLE 6 CHANGES IN THE WORK

    6.1 Adjustments to the Guaranteed Maximum Price on account of changes in the
    Work may be determined by any of the methods listed in Subparagraph 7.3.3 of
    AIA Document A201-1997.

    6.2 In calculating adjustments to subcontracts (except those awarded with
    the Owner's prior consent on the basis of cost plus a fee), the terms "cost"
    and "fee" as used in Clause 7.3.3.3 of AIA Document A201-1997 and the terms
    "costs" and "a reasonable allowance for overhead and profit" as used in
    Subparagraph 7.3.6 of AIA Document A201-1997 shall have the meanings
    assigned to them in AIA Document A201-1997 and shall not be modified by
    Articles 5,7 and 8 of this Agreement. Adjustments to subcontracts awarded
    with the Owner's prior consent on the basis of cost plus a fee shall be
    calculated in accordance with the terms of this Agreement, unless the Owner
    has furnished the Contractor with prior written approval of the Form and
    substance of the subcontract, in which case such adjustments shall be
    calculated in accordance with the terms and conditions of that subcontract.

    6.3 In calculating adjustments to the Guaranteed Maximum Price, the terms
    "cost" and "costs" as used in the above-referenced provisions of AIA
    Document A201-1997 shall mean the Cost of the Work as defined in Article 7
    of this Agreement and the terms "fee" and "a reasonable allowance for
    overhead and profit" shall mean the Contractor's Fee as defined in
    Subparagraph 5.1.2 of this Agreement.

(C) 1920, 1925, 1951, 1961, 1963, 1967, 1974, 1978, 1987, (C) 1997 by The
American Institute of Architects. Reproduction of the material herein or
substantial quotation of its provisions without written permission of the AIA
violates the copyright laws of the United States and will subject he violate to
legal prosecution.
WARNING: Unlicensed photocopying violates U.S. copyright laws and will subject
the violator to legal prosecution. This document was electronically produced
with permission of the AIA and can be reproduced in accordance with your license
without violation until the date of expiration as noted below. User Document:
a111-1977 neurocrine cost of work 9.12 -- 9/19/2003. AIA License Number 1013349,
which expires on 2/2/2004.

[AIA LOGO]

(C)1997 AIA(R)
AIA DOCUMENT A111 - 1997
OWNER - CONTRACTOR AGREEMENT

The American Institute of Architects
1735 New York Avenue, N.W.
Washington, D.C. 20006-5292

                                                                              10

<PAGE>

THIS DOCUMENT HAS IMPORTANT LEGAL CONSEQUENCES. CONSULTATION WITH AN ATTORNEY IS
ENCOURAGED WITH RESPECT TO ITS COMPLETION OR MODIFICATION. AUTHENTICATION OF
THIS ELECTRONICALLY DRAFTED AIA DOCUMENT MAY BE MADE BY USING AIA DOCUMENT D401.

This document is not intended for use in competitive bidding.

AIA Document A201-1997, General Conditions of the Contract for Construction, is
adopted in this document by reference. Do not use with other general conditions
unless this document is modified.

This document has been approved and endorsed by The Associated General
Contractors of America.

    6.4 If no specific provision is made in Paragraph 5.1 for adjustment of the
    Contractor's Fee in the case of changes in the Work, or if the extent of
    such changes is such, in the aggregate, that application of the adjustment
    provisions of Paragraph 5.1 will cause substantial inequity to the Owner or
    Contractor, the Contractor's Fee shall be equitably adjusted on the basis of
    the Fee established for the original Work, and the Guaranteed Maximum Price
    shall be adjusted accordingly.

ARTICLE 7 COSTS TO BE REIMBURSED

    7.1 COST OF THE WORK

    The term Cost of the Work shall mean costs necessarily incurred by the
    Contractor in the proper performance of the Work. Such costs shall be at
    rates not higher than the standard paid at the place of the Project except
    with prior consent of the Owner. The Cost of the Work shall include only the
    items set forth in this Article 7.

    Wherever this Agreement or a related document approved of in writing by the
    Owner states that the Contractor shall perform any work or incur any
    expense, it shall be understood to mean, in the absence of specific language
    to the contrary in this Agreement, that the costs incurred by the Contractor
    in the proper performance thereof shall be included in the Cost of the Work
    payable by the Owner.

    7.1.1 Costs due to delays beyond the Contractor's control, as defined in
    Article 8, shall be treated as increases in the Cost of the Work and the GMP
    shall be increased accordingly.

    7.1.2 All costs and fees associated with altering of public utilities,
    protection and repairs of adjoining property, and rental property for
    storage of materials to be incorporated in the Work.

    7.2 LABOR COSTS

    7.2.1 Wages of construction workers directly employed by the Contractor to
    perform the construction of the Work at the site or, with the Owner's
    approval, at off-site workshops.

    7.2.2 Wages or salaries of the Contractor's supervisory and administrative
    personnel engaged in direct support of the project stationed at the site or
    off-site.
    (If it is intended that the wages or salaries of certain personnel stationed
    at the Contractor's principal or other offices shall be included in the Cost
    of the Work, identify in Article 14 the personnel to be included and whether
    for all or only part of their time, and the rates at which their time will
    be charged to the Work.)

    7.2.2.1 The following fixed composite rates will apply as the agreed upon
    cost to be reimbursed for all laborers and carpenters provided by
    Contractor.

                Hourly rate for laborers shall be $26.00 per hour.
                Hourly rate for carpenters shall be $38.00 per hour.

    Overtime rates (time-and-a-half) shall apply to hours worked in excess of
    eight hours per day or forty hours per week and shall be:

                Over-time cost for laborers shall be $36.00 per hour.
                Over-time cost for carpenters shall be $53.00 per hour.

    Double-time rates shall be applied to hours worked in excess of twelve hours
    per day or over eight hours on the seventh day of the week or on legal
    holidays and shall be:

                Double-time cost for laborers shall be $46.00 per hour.
                Double-time cost for carpenters shall be $68.00 per hour.

(C) 1920, 1925, 1951, 1961, 1963, 1967, 1974, 1978, 1987, (C) 1997 by The
American Institute of Architects. Reproduction of the material herein or
substantial quotation of its provisions without written permission of the AIA
violates the copyright laws of the United States and will subject he violate to
legal prosecution.
WARNING: Unlicensed photocopying violates U.S. copyright laws and will subject
the violator to legal prosecution. This document was electronically produced
with permission of the AIA and can be reproduced in accordance with your license
without violation until the date of expiration as noted below. User Document:
a111-1977 neurocrine cost of work 9.12 -- 9/19/2003. AIA License Number 1013349,
which expires on 2/2/2004.

[AIA LOGO]

(C)1997 AIA(R)
AIA DOCUMENT A111 - 1997
OWNER - CONTRACTOR AGREEMENT

The American Institute of Architects
1735 New York Avenue, N.W.
Washington, D.C. 20006-5292

                                                                              11

<PAGE>

THIS DOCUMENT HAS IMPORTANT LEGAL CONSEQUENCES. CONSULTATION WITH AN ATTORNEY IS
ENCOURAGED WITH RESPECT TO ITS COMPLETION OR MODIFICATION. AUTHENTICATION OF
THIS ELECTRONICALLY DRAFTED AIA DOCUMENT MAY BE MADE BY USING AIA DOCUMENT D401.

This document is not intended for use in competitive bidding.

AIA Document A201-1997, General Conditions of the Contract for Construction, is
adopted in this document by reference. Do not use with other general conditions
unless this document is modified.

This document has been approved and endorsed by The Associated General
Contractors of America.

    The foregoing rates include all labor burden costs (fringe benefits, payroll
    taxes, vacation pay, unemployment tax, fica, workers's compensation
    insurance, etc.) as described in Paragraph 7.2.4.

    The foregoing rates apply only to laborers and carpenters provided by
    Contractor and not to any type of workers provided by subcontractors or
    others.

    7.2.3 Wages and salaries of the Contractor's supervisory or administrative
    personnel engaged, at factories, workshops or on the road, in expediting the
    production or transportation of materials or equipment required for the
    Work, but only for that portion of their time required for the Work.

    7.2.4 Costs paid or incurred by the Contractor for taxes, insurance,
    contributions, assessments and benefits required by law or collective
    bargaining agreements and, for personnel not covered by such agreements,
    customary benefits such as sick leave, medical and health benefits,
    holidays, vacations and pensions, provided such costs are based on wages and
    salaries included in the Cost of the Work under Subparagraphs 7.2.1 through
    7.2.3. The aggregate of these costs shall be calculated and applied at the
    rate of forty-one percent (41%) times the cost of salaries or wages.

    7.2.5 GENERAL CONDITIONS - FIXED AMOUNT

    Contractors cost of General Conditions shall be included in the Guaranteed
    Maximum Price in the fixed amount indicated in Attachment A General
    Conditions. General Conditions items included in this fixed amount shall
    include only those items specifically noted, and only to the extent noted,
    in Attachment A General Conditions. Cost of the items shall be included in
    the Guaranteed Maximum Price amount as a single fixed lump sum amount. The
    General Condition cost outlined in Attachment A are based on a 52 week
    schedule. If the actual project duration is greater or less than 52 weeks
    the General Conditions and the Guaranteed Maximum Price (GMP) shall be
    adjusted up or down proportionately.

    7.3 SUBCONTRACT COSTS

    7.3.1 Payments made by the Contractor to Subcontractors in accordance with
    the requirements of the subcontracts.

    7.4 COSTS OF MATERIALS AND EQUIPMENT INCORPORATED IN THE COMPLETED
    CONSTRUCTION

    7.4.1 Costs, including transportation and storage, of materials and
    equipment incorporated or to be incorporated in the completed construction.

    7.4.2 Costs of materials described in the preceding Subparagraph 7.4.1 in
    excess of those actually installed to allow for reasonable waste and
    spoilage. Unused excess materials, if any, shall become the Owner's property
    at the completion of the Work or, at the Owner's option, shall be sold by
    the Contractor. Any amounts realized from such sales shall be credited to
    the Owner as a deduction from the Cost of the Work.

    7.5 COSTS OF OTHER MATERIALS AND EQUIPMENT, TEMPORARY FACILITIES AND RELATED
    ITEMS

    7.5.1 Costs, including transportation and storage, installation,
    maintenance, dismantling and removal of materials, supplies, temporary
    facilities, machinery, equipment, and hand tools not customarily owned by
    construction workers, that are provided by the Contractor at the site

(C) 1920, 1925, 1951, 1961, 1963, 1967, 1974, 1978, 1987, (C) 1997 by The
American Institute of Architects. Reproduction of the material herein or
substantial quotation of its provisions without written permission of the AIA
violates the copyright laws of the United States and will subject he violate to
legal prosecution.
WARNING: Unlicensed photocopying violates U.S. copyright laws and will subject
the violator to legal prosecution. This document was electronically produced
with permission of the AIA and can be reproduced in accordance with your license
without violation until the date of expiration as noted below. User Document:
a111-1977 neurocrine cost of work 9.12 -- 9/19/2003. AIA License Number 1013349,
which expires on 2/2/2004.

[AIA LOGO]

(C)1997 AIA(R)
AIA DOCUMENT A111 - 1997
OWNER - CONTRACTOR AGREEMENT

The American Institute of Architects
1735 New York Avenue, N.W.
Washington, D.C. 20006-5292

                                                                              12

<PAGE>

THIS DOCUMENT HAS IMPORTANT LEGAL CONSEQUENCES. CONSULTATION WITH AN ATTORNEY IS
ENCOURAGED WITH RESPECT TO ITS COMPLETION OR MODIFICATION. AUTHENTICATION OF
THIS ELECTRONICALLY DRAFTED AIA DOCUMENT MAY BE MADE BY USING AIA DOCUMENT D401.

This document is not intended for use in competitive bidding.

AIA Document A201-1997, General Conditions of the Contract for Construction, is
adopted in this document by reference. Do not use with other general conditions
unless this document is modified.

This document has been approved and endorsed by The Associated General
Contractors of America.

    and fully consumed in the performance of the Work; and cost (less salvage
    value) of such items if not fully consumed, whether sold to others or
    retained by the Contractor. Cost for items previously used by the Contractor
    shall mean fair market value.

    7.5.2 Rental charges for temporary facilities, machinery, equipment, and
    hand tools not customarily owned by construction workers that are provided
    by the Contractor at the site, whether rented from the Contractor or others,
    and costs of transportation, installation, minor repairs and replacements,
    dismantling and removal thereof. The Contractor shall provide temporary
    utilities for construction purposes, and the cost of such utilities shall be
    included in the Cost of the Work. At such time that permanent utilities to
    the building are activated, the Owner shall assume responsibility and pay
    all costs related to the utility consumption, connection and usage.

    7.5.3 Costs of removal and disposal of debris from the site.

    7.5.4 Costs of document reproductions, facsimile transmissions and
    long-distance telephone calls, postage and parcel delivery charges,
    telephone service at the site and reasonable petty cash expenses of the site
    office including costs of reproduction of drawings, specifications, and
    other documents necessary for and directly attributable to the execution of
    the Work, and utility consumption costs, including, but not limited to
    water, steam, gas, oil, electricity, winterizing, and temporary toilets,
    which are (i) properly and actually devoted to the work and (ii) reasonably
    verifiable by the Owner.

    7.5.5 That portion of the reasonable expenses of the Contractor's personnel
    incurred while traveling in discharge of duties connected with the Work.

    7.5.6 Costs of materials and equipment suitably stored off the site at a
    mutually acceptable location, if approved in advance by the Owner.

    7.6 MISCELLANEOUS COSTS

    7.6.1 That portion of insurance and bond premiums that can be directly
    attributed to this Contract:

    7.6.1.1. Cost of Contractor's Liability Insurance shall be calculated and
    cost applied at the rate of 1% (.01) times the cost of the work other than
    insurance. This cost is not a part of the Contractor's Fee or General
    Conditions, but will be included in the Guaranteed Maximum Price (GMP) when
    established.

    7.6.1.2 Owner and Contractor agree that cost of insurance outlined in
    7.6.1.1. is sufficient only through August 31, 2003. At that time
    Contractor's current insurance policy requires renewal. Owner and Contractor
    understand that there will probably be a significant increase in the cost of
    Contractor's insurance. Upon Contractor's substantiation of the cost
    increase, Owner agrees to issue a change order to the contract for the
    increased amount.

    7.6.2 Sales, use or similar taxes imposed by a governmental authority that
    are related to the Work.

    7.6.3 Fees and assessments for the building permit and for other permits,
    licenses and inspections for which the Contractor is required by the
    Contract Documents to pay.

    7.6.4 Fees of laboratories for tests required by the Contract Documents,
    except those related to defective or nonconforming Work for which
    reimbursement is excluded by

(C) 1920, 1925, 1951, 1961, 1963, 1967, 1974, 1978, 1987, (C) 1997 by The
American Institute of Architects. Reproduction of the material herein or
substantial quotation of its provisions without written permission of the AIA
violates the copyright laws of the United States and will subject he violate to
legal prosecution.
WARNING: Unlicensed photocopying violates U.S. copyright laws and will subject
the violator to legal prosecution. This document was electronically produced
with permission of the AIA and can be reproduced in accordance with your license
without violation until the date of expiration as noted below. User Document:
a111-1977 neurocrine cost of work 9.12 -- 9/19/2003. AIA License Number 1013349,
which expires on 2/2/2004.

[AIA LOGO]

(C)1997 AIA(R)
AIA DOCUMENT A111 - 1997
OWNER - CONTRACTOR AGREEMENT

The American Institute of Architects
1735 New York Avenue, N.W.
Washington, D.C. 20006-5292

                                                                              13
<PAGE>

THIS DOCUMENT HAS IMPORTANT LEGAL CONSEQUENCES. CONSULTATION WITH AN ATTORNEY IS
ENCOURAGED WITH RESPECT TO ITS COMPLETION OR MODIFICATION. AUTHENTICATION OF
THIS ELECTRONICALLY DRAFTED AIA DOCUMENT MAY BE MADE BY USING AIA DOCUMENT D401.

This document is not intended for use in competitive bidding.

AIA Document A201-1997, General Conditions of the Contract for Construction, is
adopted in this document by reference. Do not use with other general conditions
unless this document is modified.

This document has been approved and endorsed by The Associated General
Contractors of America.

    Subparagraph 13.5.3 of AIA Document A201-1997 or other provisions of the
    Contract Documents, and which do not fall within the scope of Subparagraph
    7.7.3.

    7.6.5 Royalties and license fees paid for the use of a particular design,
    process or product required by the Contract Documents; the cost of defending
    suits or claims for infringement of patent rights arising from such
    requirement of the Contract Documents unless Contractor knew there was an
    infringement and fails to notify the Owner in a timely manner; and payments
    made in accordance with legal judgments against the Contractor resulting
    from such suits or claims and payments of settlements made with the Owner's
    consent. However, such costs of legal defenses, judgments and settlements
    shall not be included in the calculation of the Contractor's Fee or subject
    to the Guaranteed Maximum Price. If such royalties, fees and costs are
    excluded by the last sentence of Subparagraph 3.17.1 of AIA Document
    A201-1997 or other provisions of the Contract Documents, then they shall not
    be included in the Cost of the Work.

    7.6.6 Data processing costs related to the Work.

    7.6.7 Deposits lost for causes other than the Contractor's negligence or
    failure to fulfill a specific responsibility to the Owner as set forth in
    the Contract Documents.

    7.6.8 Legal, mediation and arbitration costs, including attorneys' fees,
    other than those arising from disputes between the Owner and Contractor,
    reasonably incurred by the Contractor in the performance of the Work and
    with the Owner's prior written approval; which approval shall not be
    unreasonably withheld.

    7.6.9 Expenses incurred in accordance with the Contractor's standard
    personnel policy for relocation and temporary living allowances of personnel
    required for the Work, if approved by the Owner.

    7.7 OTHER COSTS AND EMERGENCIES

    7.7.1 Other costs incurred in the performance of the Work if and to the
    extent approved in advance in writing by the Owner.

    7.7.2 Costs due to emergencies incurred in taking action to prevent
    threatened damage, injury or loss in case of an emergency affecting the
    safety of persons and property, as provided in Paragraph 10.6 of AIA
    Document A201-1997.

    7.7.3 Costs of repairing or correcting damaged or nonconforming Work
    executed by the Contractor, Subcontractors or suppliers, provided that such
    damaged or nonconforming Work was not caused by negligence or failure to
    fulfill a specific responsibility of the Contractor and only to the extent
    that the cost of repair or correction is not recoverable by the Contractor
    from insurance, sureties, Subcontractors or suppliers provided that any
    absence of collectible insurance is not due to the Contractor's breach of a
    contract for insurance.

    7.7.4 It is expressly agreed and understood that whenever work is performed
    or provided by the Contractor pursuant to this Agreement or by reason of any
    Court Order or by reason of any governmental agency or authority exercising
    jurisdiction over the Work which requires that the Contractor make any
    payment, or incur any expense or perform any service then such payment,
    expense and the performance of such service shall be included in the Cost of
    the Work to be reimbursed by the Owner to the Contractor save and except and
    to such extent as may be a result of a breach of this Agreement by the
    Contractor and save and except and to such extent as may be a result of the
    gross negligence or willful misconduct of the Contractor and save

(C) 1920, 1925, 1951, 1961, 1963, 1967, 1974, 1978, 1987, (C) 1997 by The
American Institute of Architects. Reproduction of the material herein or
substantial quotation of its provisions without written permission of the AIA
violates the copyright laws of the United States and will subject he violate to
legal prosecution.
WARNING: Unlicensed photocopying violates U.S. copyright laws and will subject
the violator to legal prosecution. This document was electronically produced
with permission of the AIA and can be reproduced in accordance with your license
without violation until the date of expiration as noted below. User Document:
a111-1977 neurocrine cost of work 9.12 -- 9/19/2003. AIA License Number 1013349,
which expires on 2/2/2004.

[AIA LOGO]

(C)1997 AIA(R)
AIA DOCUMENT A111 - 1997
OWNER - CONTRACTOR AGREEMENT

The American Institute of Architects
1735 New York Avenue, N.W.
Washington, D.C. 20006-5292

                                                                              14

<PAGE>

THIS DOCUMENT HAS IMPORTANT LEGAL CONSEQUENCES. CONSULTATION WITH AN ATTORNEY IS
ENCOURAGED WITH RESPECT TO ITS COMPLETION OR MODIFICATION. AUTHENTICATION OF
THIS ELECTRONICALLY DRAFTED AIA DOCUMENT MAY BE MADE BY USING AIA DOCUMENT D401.

This document is not intended for use in competitive bidding.

AIA Document A201-1997, General Conditions of the Contract for Construction, is
adopted in this document by reference. Do not use with other general conditions
unless this document is modified.

This document has been approved and endorsed by The Associated General
Contractors of America.

    and except and to such extent as may be expressed in specific and express
    language to the contrary.

ARTICLE 8 COSTS NOT TO BE REIMBURSED

    8.1 The Cost of the Work shall not include:

    8.1.1 Salaries and other compensation of the Contractor's personnel
    stationed at the Contractor's principal office or offices other than the
    site office, except personnel which are included in Contractor's General
    Conditions.

    8.1.2 Expenses of the Contractor's principal office and offices other than
    the site office.

    8.1.3 Overhead and general expenses, except as may be expressly included in
    Article 7.

    8.1.4 The Contractor's capital expenses, including interest on the
    Contractor's capital employed for the Work.

    8.1.5 Except as provided in Subparagraph 7.7.3 of this Agreement, costs due
    to the negligence or failure to fulfill a specific responsibility of the
    Contractor, Subcontractors and suppliers or anyone directly or indirectly
    employed by any of them or for whose acts any of them may be liable.

    8.1.6 Any cost not specifically and expressly described in Article 7.

    8.1.7 Costs, other than costs included in Change Orders approved by the
    Owner, that would cause the Guaranteed Maximum Price to be exceeded.

    8.1.8 Costs which could be included in General Conditions for the Project in
    excess of the Fixed General Conditions Amount.

ARTICLE 9 DISCOUNTS, REBATES AND REFUNDS

    9.1 Cash discounts obtained on payments made by the Contractor shall accrue
    to the Owner if (i) before making the payment, the Contractor included them
    in an Application for Payment and received payment therefor from the Owner,
    or (2) the Owner has deposited funds with the Contractor with which to make
    payments; otherwise, cash discounts shall accrue to the Contractor. Trade
    discounts, rebates, refunds and amounts received from sales of surplus
    materials and equipment shall accrue to the Owner, and the Contractor shall
    make provisions so that they can be secured. The Contractor shall not obtain
    for its own benefit any discounts, rebates, or refunds in connection with
    the Work prior to providing the Owner with seven (7) days' prior written
    notice of the potential discount, rebate or refund and an opportunity to
    furnish funds necessary to obtain such discount, rebate, or refund on behalf
    of the Owner in accordance with the requirements of this Paragraph 9.1.

    9.2 Amounts that accrue to the Owner in accordance with the provisions of
    Paragraph 9.1 shall be credited to the Owner as a deduction from the Cost of
    the Work.

ARTICLE 10 SUBCONTRACTS AND OTHER AGREEMENTS

(C) 1920, 1925, 1951, 1961, 1963, 1967, 1974, 1978, 1987, (C) 1997 by The
American Institute of Architects. Reproduction of the material herein or
substantial quotation of its provisions without written permission of the AIA
violates the copyright laws of the United States and will subject he violate to
legal prosecution.
WARNING: Unlicensed photocopying violates U.S. copyright laws and will subject
the violator to legal prosecution. This document was electronically produced
with permission of the AIA and can be reproduced in accordance with your license
without violation until the date of expiration as noted below. User Document:
a111-1977 neurocrine cost of work 9.12 -- 9/19/2003. AIA License Number 1013349,
which expires on 2/2/2004.

[AIA LOGO]

(C)1997 AIA(R)
AIA DOCUMENT A111 - 1997
OWNER - CONTRACTOR AGREEMENT

The American Institute of Architects
1735 New York Avenue, N.W.
Washington, D.C. 20006-5292

                                                                              15

<PAGE>

THIS DOCUMENT HAS IMPORTANT LEGAL CONSEQUENCES. CONSULTATION WITH AN ATTORNEY IS
ENCOURAGED WITH RESPECT TO ITS COMPLETION OR MODIFICATION. AUTHENTICATION OF
THIS ELECTRONICALLY DRAFTED AIA DOCUMENT MAY BE MADE BY USING AIA DOCUMENT D401.

This document is not intended for use in competitive bidding.

AIA Document A201-1997, General Conditions of the Contract for Construction, is
adopted in this document by reference. Do not use with other general conditions
unless this document is modified.

This document has been approved and endorsed by The Associated General
Contractors of America.

    10.1 Those portions of the Work that the Contractor does not customarily
    perform with the Contractor's own personnel shall be performed under
    subcontracts or by other appropriate agreements with the Contractor. The
    Owner may designate specific persons or entities from whom the Contractor
    shall obtain bids. The Contractor shall obtain bids from Subcontractors and
    from suppliers of materials or equipment fabricated especially for the Work
    and shall deliver such bids to the Owner or Architect. The Owner shall then
    determine, with the advice of the Contractor and the Architect, which bids
    will be accepted. The Contractor shall not be required to contract with
    anyone to whom the Contractor has reasonable objection. Except as otherwise
    approved by the Owner, each subcontract shall be awarded after the
    Contractor obtains at least three (3) bids. The Owner reserves the right to
    independently bid any Work which the Contractor intends to "self perform"
    with the exception of work included in Contractor's Fixed General
    Conditions, general clean-up and safety provisions. If contractor intends
    or desires to "self perform" other elements of the work exceeding $50,000.00
    in value, Contractor shall be required to obtain Owner's prior written
    consent. Any work performed by the Contractors affiliate shall be deemed
    self performed.

    10.2 If a specific bidder among those whose bids are delivered by the
    Contractor to the Owner or Architect (1) is recommended to the Owner by the
    Contractor; (2) is qualified to perform that portion of the Work; and (3)
    has submitted a bid that conforms to the requirements of the Contract
    Documents without reservations or exceptions, but the Owner requires that
    another bid be accepted, then the Contractor may require that a Change Order
    be issued to adjust the Guaranteed Maximum Price by the difference between
    the bid of the person or entity recommended to the Owner by the Contractor
    and the amount of the subcontract or other agreement actually signed with
    the person or entity designated by the Owner.

    10.3 Subcontracts or other agreements shall conform to the applicable
    payment provisions of this Agreement, and shall not be awarded on the
    basis of cost plus a fee without the prior consent of the Owner.

    10.4 To secure the performance of the Work under this Agreement, Contractor,
    hereby grants a security interest in each of the Subcontracts in favor of
    Owner. Contractor hereby authorizes Owner to file one or more financing or
    continuation statements, and amendments thereto, relative to all of the
    Subcontracts without the signature of Contractor where permitted by law.

ARTICLE 11 ACCOUNTING RECORDS

    The Contractor shall keep and shall require time and materials basis
    Subcontractors and Suppliers  to keep, full and detailed accounts and
    exercise such controls as may be necessary for proper financial management
    under this Contract, and the accounting and control systems shall be
    satisfactory to the Owner. The Owner and the Owner's accountants and Project
    Lender shall be afforded prompt access to, and shall be permitted to audit
    and copy, the Contractor's and time and materials basis Subcontractor's and
    Supplier records, books, correspondence, instructions, drawings, receipts,
    subcontracts, purchase orders, vouchers, memoranda and other data relating
    to this Contract, and the Contractor and time and materials basis
    Subcontractor's and Supplier shall preserve these for a period of three
    years after final payment, or for such longer period as may be required by
    law. The foregoing shall not apply to Contractor's General Conditions or
    other costs that have been included in the Contract on a fixed lump sum
    basis.

ARTICLE 12 PAYMENTS

    12.1 PROGRESS PAYMENTS

    12.1.1 Based upon Applications for Payment submitted to the Owner or
    Architect by the Contractor and Certificates for Payment issued by the
    Architect, the Owner shall make progress payments on account of the Contract
    Sum to the Contractor as provided below and elsewhere in the Contract
    Documents.

(C) 1920, 1925, 1951, 1961, 1963, 1967, 1974, 1978, 1987, (C) 1997 by The
American Institute of Architects. Reproduction of the material herein or
substantial quotation of its provisions without written permission of the AIA
violates the copyright laws of the United States and will subject he violate to
legal prosecution.
WARNING: Unlicensed photocopying violates U.S. copyright laws and will subject
the violator to legal prosecution. This document was electronically produced
with permission of the AIA and can be reproduced in accordance with your license
without violation until the date of expiration as noted below. User Document:
a111-1977 neurocrine cost of work 9.12 -- 9/19/2003. AIA License Number 1013349,
which expires on 2/2/2004.

[AIA LOGO]

(C)1997 AIA(R)
AIA DOCUMENT A111 - 1997
OWNER - CONTRACTOR AGREEMENT

The American Institute of Architects
1735 New York Avenue, N.W.
Washington, D.C. 20006-5292

                                                                              16

<PAGE>

THIS DOCUMENT HAS IMPORTANT LEGAL CONSEQUENCES. CONSULTATION WITH AN ATTORNEY IS
ENCOURAGED WITH RESPECT TO ITS COMPLETION OR MODIFICATION. AUTHENTICATION OF
THIS ELECTRONICALLY DRAFTED AIA DOCUMENT MAY BE MADE BY USING AIA DOCUMENT D401.

This document is not intended for use in competitive bidding.

AIA Document A201-1997, General Conditions of the Contract for Construction, is
adopted in this document by reference. Do not use with other general conditions
unless this document is modified.

This document has been approved and endorsed by The Associated General
Contractors of America.

    12.1.2 The Contractor shall, on or before the twenty-fifth (25th) day of
    each month, meet with the Owner's Representative and Architect (and/or other
    parties designated in writing by the Owner) to review and approve an
    itemized draft prepared by the Contractor indicating the total estimated
    value of the Work completed through the last day of the current calendar
    month, including the value of all material and equipment suitably stored at
    the site or other approved locations, and including such items of
    information and documentation, including invoices, canceled checks, lien
    waivers and other evidence as the Owner or Lender may require. Such draft
    will set forth the individual percentages of completion of each part of the
    Work including a pro-rate share of the Contractor's Fee and applicable
    retention. The approved draft will then be formalized into a written
    "Application for Payment" signed by the Contractor in a form acceptable to
    the Owner and Lender, and will be submitted to the Owner for processing.
    Applications for Payment shall be made in accordance with Paragraph 9.3 of
    the General Conditions and payment shall be made in accordance with
    Paragraph 9.6 of the General Conditions.

    12.1.3 The Application for Payment shall be submitted to the Owner's
    Representative, and, if required by the Lender, to the Architect for
    certification, on or before the last day of the month covered by the
    Application for Payment. The Owner's Representative shall promptly review
    the pre-approved Application for Payment and forward it to the Owner or
    Lender for payment. The amount approved in the Application for Payment shall
    be payable by the Owner on or before the twenty-fifth (25th) day of the
    month following the month covered by the Application for Payment.

    12.1.4 With each Application for Payment, the Contractor shall make
    available payrolls, petty cash accounts, receipted invoices or invoices with
    check vouchers attached, and any other evidence required by the Owner or
    Architect to demonstrate that cash disbursements already made by the
    Contractor on account of the Cost of the Work equal or exceed (1) progress
    payments already received by the Contractor; less (2) that portion of those
    payments attributable to the Contractor's Fee; plus (3) payrolls for the
    period covered by the present Application for Payment. Each application for
    payment shall be accompanied by Conditional Lien Releases Upon Progress
    Payments (referred to as" # 1 releases") from subcontractors and vendors,
    regardless of tier, who have properly filed California Preliminary Notices
    for the period applicable to the application for payment. Prior to receipt
    of payment. Contractor shall submit to the Owner Unconditional Lien Releases
    Upon Progress Payments (referred to as " # 2 releases") from subcontractors
    and vendors, regardless of tier, who have properly filed California
    Preliminary Notices for the prior payment application period for which
    Contractor has been paid. Owner shall not withhold payment to Contractor if
    the aggregate sum of the required # 2 releases outstanding, or not yet
    submitted, is less than fifty percent of the total retention withheld to
    date by the Owner.

    12.1.5 Each Application for Payment shall be based on the most recent
    schedule of values submitted by the Contractor in accordance with the
    Contract Documents. The schedule of

(C) 1920, 1925, 1951, 1961, 1963, 1967, 1974, 1978, 1987, (C) 1997 by The
American Institute of Architects. Reproduction of the material herein or
substantial quotation of its provisions without written permission of the AIA
violates the copyright laws of the United States and will subject he violate to
legal prosecution.
WARNING: Unlicensed photocopying violates U.S. copyright laws and will subject
the violator to legal prosecution. This document was electronically produced
with permission of the AIA and can be reproduced in accordance with your license
without violation until the date of expiration as noted below. User Document:
a111-1977 neurocrine cost of work 9.12 -- 9/19/2003. AIA License Number 1013349,
which expires on 2/2/2004.

[AIA LOGO]

(C)1997 AIA(R)
AIA DOCUMENT A111 - 1997
OWNER - CONTRACTOR AGREEMENT

The American Institute of Architects
1735 New York Avenue, N.W.
Washington, D.C. 20006-5292

                                                                              17

<PAGE>

THIS DOCUMENT HAS IMPORTANT LEGAL CONSEQUENCES. CONSULTATION WITH AN ATTORNEY IS
ENCOURAGED WITH RESPECT TO ITS COMPLETION OR MODIFICATION. AUTHENTICATION OF
THIS ELECTRONICALLY DRAFTED AIA DOCUMENT MAY BE MADE BY USING AIA DOCUMENT D401.

This document is not intended for use in competitive bidding.

AIA Document A201-1997, General Conditions of the Contract for Construction, is
adopted in this document by reference. Do not use with other general conditions
unless this document is modified.

This document has been approved and endorsed by The Associated General
Contractors of America.

    values shall allocate the entire Guaranteed Maximum Price among the various
    portions of the Work, except that the Contractor's Fee shall be shown as a
    single separate item. The schedule of values shall be prepared in such form
    and supported by such data to substantiate its accuracy as the Owner or
    Architect may require. This schedule, unless objected to by the Owner or
    Architect, shall be used as a basis for reviewing the Contractor's
    Applications for Payment.

    12.1.6 Applications for Payment shall show the percentage of completion of
    each portion of the Work as of the end of the period covered by the
    Application for Payment. The percentage of completion shall be the lesser of
    (i) the percentage of that portion of the Work which has actually been
    completed; or (2) the percentage obtained by dividing (a) the expense that
    has actually been incurred by the Contractor on account of that portion of
    the Work for which the Contractor has made or intends to make actual payment
    prior to the next Application for Payment by (b) the share of the Guaranteed
    Maximum Price allocated to that portion of the Work in the schedule of
    values.

    12.1.7 Subject to other provisions of the Contract Documents, the amount of
    each progress payment shall be computed as follows:

        .1  take that portion of the Guaranteed Maximum Price properly allocable
            to completed Work as determined by multiplying the percentage of
            completion of each portion of the Work by the share of the
            Guaranteed Maximum Price allocated to that portion of the Work in
            the schedule of values. Pending final determination of cost to the
            Owner of changes in the Work, amounts not in dispute shall be
            included as provided in Subparagraph 7.3.8 of AIA Document
            A201-1997;

        .2  add that portion of the Guaranteed Maximum Price properly allocable
            to materials and equipment delivered and suitably stored at the site
            for subsequent incorporation in the Work, or if approved in advance
            by the Owner, suitably stored off the site at a location agreed upon
            in writing;

        .3  add the Contractor's Fee, less retainage of ten percent (10%).
            subject to provisions of 12.1.8. The Contractor's Fee shall be
            computed upon the Cost of the Work described in the two preceding
            Clauses at the rate stated in Subparagraph 5.1.2 or, if the
            Contractor's Fee is stated as a fixed sum in that Subparagraph,
            shall be an amount that bears the same ratio to that fixed-sum fee
            as the Cost of the Work in the two preceding Clauses bears to a
            reasonable estimate of the probable Cost of the Work upon its
            completion;

        .4  subtract the aggregate of previous payments made by the Owner;

        .5  During the course of construction, each Application for Payment
            shall be subject to a retention of ten percent (10%): however, after
            the Work is fifty percent (50%) complete, and for so long as the
            Contractor is not in default hereunder, no additional retention
            shall be required (after which time the retention shall be and
            remain approximately five percent (5%) of the total Contract sum.)
            In addition to the foregoing, in the event the Contractor retains
            more than ten percent (10%) from disbursements to be made to any
            Subcontractor, the application for payment from the Owner shall be
            subject to a retention in an equal amount.

(C) 1920, 1925, 1951, 1961, 1963, 1967, 1974, 1978, 1987, (C) 1997 by The
American Institute of Architects. Reproduction of the material herein or
substantial quotation of its provisions without written permission of the AIA
violates the copyright laws of the United States and will subject he violate to
legal prosecution.
WARNING: Unlicensed photocopying violates U.S. copyright laws and will subject
the violator to legal prosecution. This document was electronically produced
with permission of the AIA and can be reproduced in accordance with your license
without violation until the date of expiration as noted below. User Document:
a111-1977 neurocrine cost of work 9.12 -- 9/19/2003. AIA License Number 1013349,
which expires on 2/2/2004.

[AIA LOGO]

(C)1997 AIA(R)
AIA DOCUMENT A111 - 1997
OWNER - CONTRACTOR AGREEMENT

The American Institute of Architects
1735 New York Avenue, N.W.
Washington, D.C. 20006-5292

                                                                              18

<PAGE>

THIS DOCUMENT HAS IMPORTANT LEGAL CONSEQUENCES. CONSULTATION WITH AN ATTORNEY IS
ENCOURAGED WITH RESPECT TO ITS COMPLETION OR MODIFICATION. AUTHENTICATION OF
THIS ELECTRONICALLY DRAFTED AIA DOCUMENT MAY BE MADE BY USING AIA DOCUMENT D401.

This document is not intended for use in competitive bidding.

AIA Document A201-1997, General Conditions of the Contract for Construction, is
adopted in this document by reference. Do not use with other general conditions
unless this document is modified.

This document has been approved and endorsed by The Associated General
Contractors of America.

        .6  Retention will not be held on that portion of payment applications
            related to Contractor's Fee. General Conditions or Liability
            Insurance.

    12.1.8 Except with the Owner's prior approval, payments to Subcontractors
    shall be subject to retainage of not more than ten percent (10%). The Owner
    and the Contractor shall agree upon a mutually acceptable procedure for
    review and approval of payments and retention for Subcontractors.

    12.1.8.1 Some Subcontractors may request special terms of payment which will
    be presented to the Owner for consideration and approval by the Owner. When
    approved, a Change Order will be issued to indicate the Subcontractors
    involved and the agreed upon terms. In such instance. Owner shall pay
    Contractor consistent with subcontractors terms for that portion of the work
    performed by the Subcontractor.

    12.1.9 In taking action on the Contractor's Applications for Payment, the
    Owner or Architect shall be entitled to rely on the accuracy and
    completeness of the information furnished by the Contractor and shall not be
    deemed to represent that the Owner or Architect has made a detailed
    examination, audit or arithmetic verification of the documentation submitted
    in accordance with Subparagraph 12.1.4 or other supporting data; that the
    Owner or Architect has made exhaustive or continuous on-site inspections or
    that the Owner or Architect has made examinations to ascertain how or for
    what purposes the Contractor has used amounts previously paid on account of
    the Contract. Such examinations, audits and verifications, if required by
    the Owner, will be performed by the Owner's accountants acting in the sole
    interest of the Owner.

    12.2 FINAL PAYMENT

    12.2.1 Thirty-five (35) Days after the later of the date (the "Actual
    Substantial Completion Date") that is the Substantial Completion of
    Building 1 or Substantial Completion of Building 2 as defined in Section 4.1
    hereof, any Unpaid balance with exception of Owner's right to withhold 150%
    of the Owner's fairly estimated cost to complete any incomplete or punchlist
    work, plus the remaining retention will be paid to the Contractor; provided
    that such payment shall not be due and payable until the Owner has received
    the following documents, all in form and substance satisfactory to the
    Owner:

    (a) a duly executed certification by the Contractor identifying all
    Subcontractors with whom the Contractor has entered into subcontracts, and
    the amount owed to each Subcontractor: and

    (b) duly executed Releases of Mechanics' and Materialmen's Liens from the
    Contractor and all Subcontractors establishing payment or conditioned upon
    satisfaction of payment from the unpaid balance.

(C) 1920, 1925, 1951, 1961, 1963, 1967, 1974, 1978, 1987, (C) 1997 by The
American Institute of Architects. Reproduction of the material herein or
substantial quotation of its provisions without written permission of the AIA
violates the copyright laws of the United States and will subject he violate to
legal prosecution.
WARNING: Unlicensed photocopying violates U.S. copyright laws and will subject
the violator to legal prosecution. This document was electronically produced
with permission of the AIA and can be reproduced in accordance with your license
without violation until the date of expiration as noted below. User Document:
alll-1977 neurocrine cost of work 9.12 -- 9/19/2003. AIA License Number 1013349,
which expires on 2/2/2004.

[AIA LOGO]

(C)1997 AIA(R)
AIA DOCUMENT A111 - 1997
OWNER - CONTRACTOR AGREEMENT

The American Institute of Architects
1735 New York Avenue, N.W.
Washington, D.C. 20006-5292

                                                                              19

<PAGE>

THIS DOCUMENT HAS IMPORTANT LEGAL CONSEQUENCES. CONSULTATION WITH AN ATTORNEY IS
ENCOURAGED WITH RESPECT TO ITS COMPLETION OR MODIFICATION. AUTHENTICATION OF
THIS ELECTRONICALLY DRAFTED AIA DOCUMENT MAY BE MADE BY USING AIA DOCUMENT D401.

This document is not intended for use in competitive bidding.

AIA Document A201-1997, General Conditions of the Contract for Construction, is
adopted in this document by reference. Do not use with other general conditions
unless this document is modified.

This document has been approved and endorsed by The Associated General
Contractors of America.

    12.2.1.1 In addition to the actions required for final payment set forth in
    Paragraph 9.10 of the General Conditions, on or before thirty (30) days
    after the later of the actual Substantial Completion Date, execution of
    final Change Orders or Construction Change Directives, completion of punch
    list items, or settlement of any claims, disputes, or litigation, the
    Contractor shall submit a billing statement showing, in such form and detail
    as the Owner shall reasonably require, the aggregate of all reimbursable
    costs paid or then due on account of the Cost of the Work. If the aggregate
    amount is greater than the total previous payments, the Owner will pay the
    balance due within five (5) days of receiving the billing statement. If the
    aggregate amount is less than the total of previous payments, the amount due
    to the Owner will be remitted with the final statement. Additionally, the
    Contractor guarantees to deliver to Owner a "lien free" project evidenced by
    final unconditional releases from all subcontractors used on the project.

    12.2.2 The Owner's final payment to the Contractor shall be made no later
    than 30 days after The actual Substantial Completion Date or constructive
    occupancy, of both buildings whichever occurs first.

    12.2.3 The Owner's accountants will review and report in writing on the
    Contractors final accounting within 30 days after delivery of the final
    accounting to the Owner or Architect by the Contractor. Based upon such
    Cost of the Work as the Owner's accountants report to be substantiated by
    the Contractor's final accounting, and provided the other conditions of
    Subparagraph 12.2.1 have been met, the Owner will, within seven days after
    receipt of the written report of the Owner's accountants, either issue to
    the Contractor a final Payment or notify the Contractor in writing of the
    reasons for withholding payment as provided in Subparagraph 9.5.1 of the AIA
    Document A201-1997. The time periods stated in this Subparagraph 12.2.3
    supersede those stated in Subparagraph 9.4.1 of the AIA Document A201-1997.

    12.2.4 If the Owner's accountants report the Cost of the Work as
    substantiated by the Contractor's final accounting to be more or less than
    claimed by the Contractor, the Contractor shall be entitled to demand
    arbitration of the disputed amount without a further decision of the Owner
    or Architect. Such demand for arbitration shall be made by the Contractor
    within 30 days after the Contractor's receipt of a copy of the Owner's
    Accountants Reports Pending a final resolution by arbitration, the Owner
    shall pay the Contractor the amount due as indicated by the Owner's
    Accountants Reports.

    12.2.5 If, subsequent to final payment and at the Owner's request, the
    Contractor incurs costs described in Article 7 and not excluded by Article 8
    to correct defective nonconforming, or warranty Work, the Owner shall
    reimburse the Contractor such costs and the Contractor's Fee applicable
    thereto on the same basis as if such costs had been incurred prior to final
    payment, but not in excess of the Guaranteed Maximum Price. If the
    Contractor has participated in savings as provided in Paragraph 5.2, the
    amount of such savings shall be recalculated and appropriate credit given to
    the Owner in determining the net amount to be paid by the Owner to the
    Contractor.

ARTICLE 13 TERMINATION OR SUSPENSION

    13.1 The Contract may be terminated by the Contractor, or by the Owner for
    convenience, as provided in Article 14 of AIA Document A201-1997. However,
    the amount to be paid to the Contractor under Subparagraph 14.1.3 of AIA
    Document A201-1997 shall not exceed the amount

(C) 1920, 1925, 1951, 1961, 1963, 1967, 1974, 1978, 1987, (C) 1997 by The
American Institute of Architects. Reproduction of the material herein or
substantial quotation of its provisions without written permission of the AIA
violates the copyright laws of the United States and will subject he violate to
legal prosecution.
WARNING: Unlicensed photocopying violates U.S. copyright laws and will subject
the violator to legal prosecution. This document was electronically produced
with permission of the AIA and can be reproduced in accordance with your license
without violation until the date of expiration as noted below. User Document:
a111-1977 neurocrine cost of work 9.12 -- 9/19/2003. AIA License Number 1013349,
which expires on 2/2/2004.

[AIA LOGO]

(C)1997 AIA(R)
AIA DOCUMENT A111 - 1997
OWNER - CONTRACTOR AGREEMENT

The American Institute of Architects
1735 New York Avenue, N.W.
Washington, D.C. 20006-5292

                                                                              20

<PAGE>

THIS DOCUMENT HAS IMPORTANT LEGAL CONSEQUENCES. CONSULTATION WITH AN ATTORNEY IS
ENCOURAGED WITH RESPECT TO ITS COMPLETION OR MODIFICATION. AUTHENTICATION OF
THIS ELECTRONICALLY DRAFTED AIA DOCUMENT MAY BE MADE BY USING AIA DOCUMENT D401.

This document is not intended for use in competitive bidding.

AIA Document A201-1997, General Conditions of the Contract for Construction, is
adopted in this document by reference. Do not use with other general conditions
unless this document is modified.

This document has been approved and endorsed by The Associated General
Contractors of America.

    the Contractor would be entitled to receive under Paragraph 13.2 below,
    except that the Contractor's Fee shall be calculated based only on the cost
    work that has been performed or suitable stored by the Contractor.

    13.2 The Contract may be terminated by the Owner for cause as provided in
    Article 14 of AIA Document A201-1997. The amount, if any, to be paid to the
    Contractor under Subparagraph 14.2.4 of AIA Document A201-1997 shall not
    cause the Guaranteed Maximum Price to be exceeded, nor shall it exceed an
    amount calculated as follows:

    13.2.1 Take the Cost of the Work incurred by the Contractor to the date of
    termination;

    13.2.2 Add the Contractor's Fee computed upon the Cost of the Work to the
    date of termination at the rate stated in Subparagraph 5.1.2 or, if the
    Contractor's Fee is stated as a fixed sum in that Subparagraph, an amount
    that bears the same ratio to that fixed-sum Fee as the Cost of the Work at
    the time of termination bears to a reasonable estimate of the probable Cost
    of the Work upon its completion; and

    13.2.3 Subtract the aggregate of previous payments made by the Owner.

    13.3 The Owner shall also pay the Contractor fair compensation, either by
    purchase or rental at the election of the Owner, for any equipment owned by
    the Contractor that the Owner elects to retain and that is not otherwise
    included in the Cost of the Work under Subparagraph 13.2.1. To the extent
    that the Owner elects to take legal assignment of subcontracts and purchase
    orders (including rental agreements), the Contractor shall, as a condition
    of receiving the payments referred to in this Article 13, execute and
    deliver all such papers and take all such steps, including the legal
    assignment of such subcontracts and other contractual rights of the
    Contractor, as the Owner may require for the purpose of fully vesting in the
    Owner the rights and benefits of the Contractor under such subcontracts or
    purchase orders.

    13.4 The Work may be suspended by the Owner as provided in Article 14 of AIA
    Document A201-1997; in such case, the Guaranteed Maximum Price and Contract
    Time shall be increased as provided in Subparagraph 14.3.2 of AIA Document
    A201-1997 except that the term "profit" shall be understood to mean the
    Contractor's Fee as described in Subparagraphs 5.1.2 and Paragraph 6.4 of
    this Agreement.

ARTICLE 14 MISCELLANEOUS PROVISIONS

    14.1 Where reference is made in this Agreement to a provision AIA Document
    A201-1997 or another Contract Document, the reference refers to that
    provision as amended or supplemented by other provisions of the Contract
    Documents.

    14.2 Payments due and unpaid under the Contract shall bear interest from the
    date payment is due at the rate stated below, or in the absence thereof, at
    the legal rate prevailing from time to time at the place where the Project
    is located.
    (Insert rate of interest agreed upon, if any.)

    (Usury laws and requirements under the Federal Truth in Lending Act, similar
    state and local consumer credit laws and other regulations at the Owner's
    and Contractor's principal places of business, the location of the Project
    and elsewhere may affect the validity of this provision. Legal advice should
    be obtained with respect to deletions or modifications, and also regarding
    requirements such as written disclosures or waivers.)

    14.3 The Owner's representative is:
    (Name, address and other information)

                                   Eric Spoor

(C) 1920, 1925, 1951, 1961, 1963, 1967, 1974, 1978, 1987, (C) 1997 by The
American Institute of Architects. Reproduction of the material herein or
substantial quotation of its provisions without written permission of the AIA
violates the copyright laws of the United States and will subject he violate to
legal prosecution.
WARNING: Unlicensed photocopying violates U.S. copyright laws and will subject
the violator to legal prosecution. This document was electronically produced
with permission of the AIA and can be reproduced in accordance with your license
without violation until the date of expiration as noted below. User Document:
a111-1977 neurocrine cost of work 9.12 -- 9/19/2003. AIA License Number 1013349,
which expires on 2/2/2004.

[AIA LOGO]

(C)1997 AIA(R)
AIA DOCUMENT A111 - 1997
OWNER - CONTRACTOR AGREEMENT

The American Institute of Architects
1735 New York Avenue, N.W.
Washington, D.C. 20006-5292

                                                                              21

<PAGE>

THIS DOCUMENT HAS IMPORTANT LEGAL CONSEQUENCES. CONSULTATION WITH AN ATTORNEY IS
ENCOURAGED WITH RESPECT TO ITS COMPLETION OR MODIFICATION. AUTHENTICATION OF
THIS ELECTRONICALLY DRAFTED AIA DOCUMENT MAY BE MADE BY USING AIA DOCUMENT D401.

This document is not intended for use in competitive bidding.

AIA Document A201-1997, General Conditions of the Contract for Construction, is
adopted in this document by reference. Do not use with other general conditions
unless this document is modified.

This document has been approved and endorsed by The Associated General
Contractors of America.

    14.4 The Contractor's representative is:
    (Name, address and other information.)

                           Dave Petty and Dan Dickey

    14.5 Neither the Owner's nor the Contractor's representative shall be
    changed without ten days' written notice to the other party.

    14.6 Other provisions:

    14.6.1 If either party commences a proceeding or action against the other to
    enforce any of the terms of the Contract Documents or because of the breach
    by either party of any of the terms of the Contract Documents, the losing or
    defaulting party shall pay to the prevailing party the actual costs and
    expenses incurred in connection with the prosecution or defense of such
    proceeding or action and any appeals in connection therewith, including
    actual accountants' and attorney's fees. Any arbitration award or final
    judgment or order entered in any such proceedings or action shall contain a
    specific provision providing for the recovery of all costs and expenses of
    suit, including, without limitation, actual attorneys' fees and costs and
    expenses incurred in connection with: (i) enforcing, perfecting and
    executing such judgment; (ii) post-judgment motions; (iii) contempt
    proceedings; (iv) garnishment, levy, and debtor and third-party
    examinations; (v) discovery; and (vi) bankruptcy litigation. The foregoing
    shall be subject to the conditions and limitations stipulated in Paragraph
    14.6.1.1.

    14.6.1.1 Any party filing a complaint or cross complaint to enforce the
    terms or obligations under this Agreement shall be required, at the time of
    filing said complaint or cross-complaint, to serve on the other party of
    this Agreement a Demand for Payment, clearly stating, in a detailed and
    itemized format, all damages, exclusive of attorney and expert fees,
    including those sought under Paragraph 14.6.1 claimed under said complaint
    or cross-complaint, which if accepted by the other party, shall act as a
    full and compete settlement of the action brought by said party. Failure by
    any party to timely serve the Demand for Payment with its complaint or
    cross- complaint shall act as a complete and final waiver of its right to
    any attorney's fees and costs recoverable under Paragraph 14.6.1. If the
    Demand for Payment requirement has been timely met, then the amount of
    attorney's fees and costs recoverable under Paragraph 14.6.1 shall be equal
    to the percentage of damages awarded by the jury, or court, in relation to
    the amount stated in the Demand for Payment. By way of example, if the
    Demand for Payment is in the amount of $100.000.00 and the amount of damages
    awarded the verdict or decision is $50.000.00, then that prevailing party
    shall be entitled to a recovery of 50% of its reasonable attorney's fees and
    costs as post-trail costs under Paragraph 14.6.1.

    14.6.2 The Contractor shall provide to the Owner three (3) copies of a
    complete project closeout manual which shall describe all critical
    components of the Project, as well as as-built documents of all systems and
    underground utilities, air balance reports, installation documents,
    warranties, and operations and maintenance manuals.

    14.6.3 Service of Notices. All notices or other communications required or
    permitted hereunder shall be in writing, and shall be (i) personally
    delivered, in which event they shall be deemed received on the date of
    delivery, or (ii) sent by certified mail, postage prepaid, return receipt
    requested, or (iii) by a professional courier company which

(C) 1920, 1925, 1951, 1961, 1963, 1967, 1974, 1978, 1987, (C) 1997 by The
American Institute of Architects. Reproduction of the material herein or
substantial quotation of its provisions without written permission of the AIA
violates the copyright laws of the United States and will subject he violate to
legal prosecution.
WARNING: Unlicensed photocopying violates U.S. copyright laws and will subject
the violator to legal prosecution. This document was electronically produced
with permission of the AIA and can be reproduced in accordance with your license
without violation until the date of expiration as noted below. User Document:
a111-1977 neurocrine cost of work 9.12 -- 9/19/2003. AIA License Number 1013349,
which expires on 2/2/2004.

[AIA LOGO]

(C)1997 AIA(R)
AIA DOCUMENT A111 - 1997
OWNER - CONTRACTOR AGREEMENT

The American Institute of Architects
1735 New York Avenue, N.W.
Washington, D.C. 20006-5292

                                                                              22

<PAGE>

THIS DOCUMENT HAS IMPORTANT LEGAL CONSEQUENCES. CONSULTATION WITH AN ATTORNEY IS
ENCOURAGED WITH RESPECT TO ITS COMPLETION OR MODIFICATION. AUTHENTICATION OF
THIS ELECTRONICALLY DRAFTED AIA DOCUMENT MAY BE MADE BY USING AIA DOCUMENT D401.

This document is not intended for use in competitive bidding.

AIA Document A201-1997, General Conditions of the Contract for Construction, is
adopted in this document by reference. Do not use with other general conditions
unless this document is modified.

This document has been approved and endorsed by The Associated General
Contractors of America.

    provides a receipt evidencing delivery, in which event they shall be deemed
    received on the date of delivery as evidenced by the receipt or (iv) by
    facsimile or e-mail when supported by evidence of delivery.

    14.6.4 Interest. In the event that any payments are not made by the Owner to
    the Contractor when due in accordance with this Agreement, and provided that
    the Contractor has made its Application for Payment in accordance with
    Article 12 of this Agreement, said late payments shall bear interest from
    the date the payment was due until paid at the rate of prime (as reported by
    Moneyline Telerate and published in the S.D. Daily Transcript) + four
    percent (4%) per annum. The fact that the Contractor is charging interest in
    accordance with this provision shall not constitute waiver by the Contractor
    of any other rights or remedies provided for herein by reason of the Owner's
    default in making such payments, including specifically, but not limited to,
    the Contractor's right to terminate this Contract for nonpayment.

    14.6.5 Destruction of the Work by Fire, Elements, Etc.

         (a) In the event the Work herein is wholly or partially damaged or
    destroyed by war, fire, storm, lighting, flood, earthquake, settlement or
    defective soils, expansion or contraction, cracking or deflection, tidal
    wave, surface or subsurface water, mob violence, vandalism or other casualty
    before the final completion of the Work, the Contractor, upon written
    instruction from the Owner, shall proceed to replace and/or repair the Work
    in accordance with the plans. In this event, the provisions of this
    Agreement shall remain in full force and effect. The GMP stated in Article 5
    shall be increased by the total cost of removing and/or replacing all
    damaged and/or destroyed Work. The time for completion shall be extended,
    and the Contractor's Fee and General Conditions shall be increased.

         (b) In the event of substantial damage or destruction to the Work by
    any cause, the Owner may, upon giving written notice to the Contractor,
    elect to terminate this Agreement. If the Owner elects to terminate this
    Agreement, the Owner shall pay the Contractor for all of the Work completed
    to that date and all obligations incurred by the Contractor in connection
    with the Work and the related Contractor's Fee.

         (c) Owner will obtain, prior to the commencement of the Work: flood,
    earthquake, fire and extended coverage insurance, including "all risk"
    insurance and such other additional insurance as it may desire, to insure
    those casualties enumerated in Paragraph (a) upon the Work and upon all
    materials intended to become a part of the Work, whether on-site temporarily
    and suitably stored elsewhere, or in transit. The Owner shall be responsible
    for payment of any deductible amount required under the terms of such
    insurance, except when the loss is due to Contractors gross negligence,
    willful misconduct, or breach of contract, in which case Contractor shall be
    responsible for payment of the deductible, not to exceed $5,000.00 per
    occurrence. The Owner shall provide for Contractor to be named as additional
    insured on these policies.

    14.6.6 Records and Audits.

    (a) The Contractor shall maintain true and correct sets of records in
    connection with the Work and all transactions related thereto in accordance
    with customary construction accounting procedures and shall retain all such
    records for at least twenty-four (24) months after completion of the Work
    authorized under this Agreement.

(C) 1920, 1925, 1951, 1961, 1963, 1967, 1974, 1978, 1987, (C) 1997 by The
American Institute of Architects. Reproduction of the material herein or
substantial quotation of its provisions without written permission of the AIA
violates the copyright laws of the United States and will subject he violate to
legal prosecution.
WARNING: Unlicensed photocopying violates U.S. copyright laws and will subject
the violator to legal prosecution. This document was electronically produced
with permission of the AIA and can be reproduced in accordance with your license
without violation until the date of expiration as noted below. User Document:
a111-1977 neurocrine cost of work 9.12 -- 9/19/2003. AIA License Number 1013349,
which expires on 2/2/2004.

[AIA LOGO]

(C)1997 AIA(R)
AIA DOCUMENT A111 - 1997
OWNER - CONTRACTOR AGREEMENT

The American Institute of Architects
1735 New York Avenue, N.W.
Washington, D.C. 20006-5292

                                                                              23

<PAGE>

THIS DOCUMENT HAS IMPORTANT LEGAL CONSEQUENCES. CONSULTATION WITH AN ATTORNEY IS
ENCOURAGED WITH RESPECT TO ITS COMPLETION OR MODIFICATION. AUTHENTICATION OF
THIS ELECTRONICALLY DRAFTED AIA DOCUMENT MAY BE MADE BY USING AIA DOCUMENT D401.

This document is not intended for use in competitive bidding.

AIA Document A201-1997, General Conditions of the Contract for Construction, is
adopted in this document by reference. Do not use with other general conditions
unless this document is modified.

This document has been approved and endorsed by The Associated General
Contractors of America.

    (b) If the Contractor's compensation under this Agreement is determined in
    whole or in part on a reimbursement of costs basis, the costs to be
    reimbursed shall be only those reasonably necessary to perform the Work in
    an efficient manner in accordance with the time schedule required. The Owner
    may, from time to time and at any time after the date of this Agreement
    until twenty-four (24) months after the completion of the Work, make an
    audit of all records of the Contractor in connection with all reimbursable
    costs. Such audit may also cover the Contractor's procedures and controls
    with respect to the costs to be reimbursed. Upon completion of such audit,
    the Owner shall pay Contractor any compensation due Contractor hereunder as
    shown by the audit. Any amount by which the total payments by Owner to the
    Contractor exceed the amount due the Contractor as shown by the audit shall
    be returned to the Owner. Items not covered by reimbursement such as fixed
    percentages or fixed lump sums shall not be subject to audit under this
    paragraph.

    (c) The Contractor shall assist the Owner in making the above audits.

    (d) The Contractor shall require, and shall require Neal Electric and
    Weather Engineering to require, in all subcontracts in connection with the
    Work, the agreement of the parties to each of the provisions of this
    Paragraph 14.6.9.

    14.6.7 Ownership and Confidentiality

    All designs, technical information, reports, studies and other work product
    developed under this Agreement shall be the property of the Owner and may be
    used by the Owner in any manner it may find appropriate in the future,
    provided however, that if the Owner should so use such information and work
    product for purposes other than in connection with construction,
    maintenance, and repair of the improvements and other facilities or other
    Work contemplated under this Agreement without the Contractor's knowledge
    and written approval, the Owner will release the Contractor from any
    liability therefor and will hold the Contractor harmless from and indemnify
    it against any claims made by third parties as a result of such use.
    Tracings of drawings and originals of material prepared hereunder shall be
    delivered to the Owner upon its request or upon completion of termination of
    the Work. Also, any reference or other material the Owner supplies to the
    Contractor for performance of the Work hereunder shall be returned to the
    Owner upon request or upon completion or termination of the Work thereon.
    The Contractor and all Subcontractors shall keep confidential and
    information required from the Owner's employees or from inspection of the
    Owner's property relating to the Owner's designs, business plans, business
    opportunities, financial or other confidential information.

    14.6.8 Site Safety Policy

    The Contractor shall maintain a policy and enforcement procedures to prevent
    the Contractor's and its Subcontractors' employees, agents and affiliates
    from using, introducing or being under the influence of controlled
    substances (as hereinafter defined) or possessing any weapon or firearm on
    the site ("Site Safety Policy"). "Controlled substances" specifically
    include, but are not limited to alcohol, opiates; hallucinogens, including
    marijuana and cocaine, PCP; and prescription drugs which are not obtained
    and used under a prescription lawfully issued to the person possessing them;
    and any other substance included in the Federal Controlled Substances Act or
    its regulations. As used herein, "under the influence of" alcohol is defined
    as having a blood alcohol concentration (BAC) of 0.04% or above. The
    Contractor's enforcement procedures shall, at a minimum, remove from the
    site any of the Contractor's or its Subcontractors' employees or agents
    found to be in violation of the Contractor's Site Safety Policy.

(C) 1920, 1925, 1951, 1961, 1963, 1967, 1974, 1978, 1987, (C) 1997 by The
American Institute of Architects. Reproduction of the material herein or
substantial quotation of its provisions without written permission of the AIA
violates the copyright laws of the United States and will subject he violate to
legal prosecution.
WARNING: Unlicensed photocopying violates U.S. copyright laws and will subject
the violator to legal prosecution. This document was electronically produced
with permission of the AIA and can be reproduced in accordance with your license
without violation until the date of expiration as noted below. User Document:
a111-1977 neurocrine cost of work 9.12 -- 9/19/2003. AIA License Number 1013349,
which expires on 2/2/2004.

[AIA LOGO]

(C)1997 AIA(R)
AIA DOCUMENT A111 - 1997
OWNER - CONTRACTOR AGREEMENT

The American Institute of Architects
1735 New York Avenue, N.W.
Washington, D.C. 20006-5292

                                                                              24

<PAGE>

THIS DOCUMENT HAS IMPORTANT LEGAL CONSEQUENCES. CONSULTATION WITH AN ATTORNEY IS
ENCOURAGED WITH RESPECT TO ITS COMPLETION OR MODIFICATION. AUTHENTICATION OF
THIS ELECTRONICALLY DRAFTED AIA DOCUMENT MAY BE MADE BY USING AIA DOCUMENT D401.

This document is not intended for use in competitive bidding.

AIA Document A201-1997, General Conditions of the Contract for Construction, is
adopted in this document by reference. Do not use with other general conditions
unless this document is modified.

This document has been approved and endorsed by The Associated General
Contractors of America.

ARTICLE 15 ENUMERATION OF CONTRACT DOCUMENTS

    15.1 The Contract Documents, except for Modifications issued after execution
    of this Agreement, are enumerated as follows:

    To be listed at the time the Guaranteed Maximum Price (GMP) is established,
    and incorporated by Change Order.

    15.1.1 The Agreement is this executed 1997 edition of the Standard Form of
    Agreement Between Owner and Contractor, AIA Document A111-1997.

    15.1.2 The General Conditions are the 1997 edition of the General Conditions
    of the Contract for Construction, AIA Document A201-1997.

    As modified and attached hereto dated September 19, 2003.

    15.1.3 The Supplementary and other Conditions of the Contract are those
    contained in the Project Manual dated , and are as follows:

    Document                       Title                       Pages

    To be listed at the time the Guaranteed Maximum Price (GMP) is established,
    and incorporated by Change Order

    15.1.4 The Specifications are those contained in the Project Manual dated as
    in Subparagraph 15.1.3, and are as follows:
    (Either list the Specifications here or refer to an exhibit attached to this
    Agreement.)

    Section                        Title                       Pages

    To be listed at the time the Guaranteed Maximum Price (GMP) is established,
    and incorporated by Change Order,

    15.1.5 The Drawings are as follows, and are dated unless a different date is
    shown below:
    (Either list the Drawings here or refer to an exhibit attached to this
    Agreement.)

    Number                         Title                       Date

    To be listed at the time the Guaranteed Maximum Price (GMP) is established,
    and incorporated by Change Order.

    15.1.6 The Addenda, if any, are as follows:

    Number                         Date                        Pages

    To be listed at the time the Guaranteed Maximum Price (GMP) is established,
    and incorporated by Change Order.

    Portions of Addenda relating to bidding requirements are not part of the
    Contract Documents unless the bidding requirements are also enumerated in
    this Article 15.

    15.1.7 Other Documents, if any, forming part of the Contract Documents are
    as follows:
    (List here any additional documents, such as a list of alternates that are
    intended to form part of the Contract Documents. AIA Document A201-1997
    provides that bidding requirements such as advertisement or invitation to
    bid, Instructions to Bidders, sample forms and the Contractor's bid are not
    part of the Contract Documents unless enumerated in this Agreement. They
    should be listed here only if intended to be part of the Contract
    Documents.)

(C) 1920, 1925, 1951, 1961, 1963, 1967, 1974, 1978, 1987, (C) 1997 by The
American Institute of Architects. Reproduction of the material herein or
substantial quotation of its provisions without written permission of the AIA
violates the copyright laws of the United States and will subject he violate to
legal prosecution.
WARNING: Unlicensed photocopying violates U.S. copyright laws and will subject
the violator to legal prosecution. This document was electronically produced
with permission of the AIA and can be reproduced in accordance with your license
without violation until the date of expiration as noted below. User Document:
a111-1977 neurocrine cost of work 9.12 -- 9/19/2003. AIA License Number 1013349,
which expires on 2/2/2004.

[AIA LOGO]

(C)1997 AIA(R)
AIA DOCUMENT A111 - 1997
OWNER - CONTRACTOR AGREEMENT

The American Institute of Architects
1735 New York Avenue, N.W.
Washington, D.C. 20006-5292

                                                                              25

<PAGE>

THIS DOCUMENT HAS IMPORTANT LEGAL CONSEQUENCES. CONSULTATION WITH AN ATTORNEY IS
ENCOURAGED WITH RESPECT TO ITS COMPLETION OR MODIFICATION. AUTHENTICATION OF
THIS ELECTRONICALLY DRAFTED AIA DOCUMENT MAY BE MADE BY USING AIA DOCUMENT D401.

This document is not intended for use in competitive bidding.

AIA Document A201-1997, General Conditions of the Contract for Construction, is
adopted in this document by reference. Do not use with other general conditions
unless this document is modified.

This document has been approved and endorsed by The Associated General
Contractors of America.

ARTICLE 16 INSURANCE AND BONDS

    (List required limits of liability for insurance and bonds. AIA Document
    A201-1997 gives other specific requirements for insurance and bonds.)

    16.1 Subject to 16.1.1., Contractor shall not be responsible for provision
    or costs of any bonds related to this project.

    16.1.1. Upon Owner's request, Contractor agrees to furnish, at Owner's
    expense, a construction performance bond or bonds in an aggregate penal sum
    determined by owner up to the GMP. Such construction performance bonds shall
    serve as financial security for the faithful performance and payment of
    Contractor's obligations under this Agreement or for the performance and
    payment of one or more Subcontractors' obligations under their respective
    subcontracts, as determined by Owner. Each such construction performance
    bond shall be in a form satisfactory to Owner and shall be issued by a
    surety company that; (1) is approved by Owner's lender. (2) has a rating of
    "A" in the latest revision of the A.M. Best Insurance Report; (3) is listed
    in the United States Treasury Department's Circular 570. "Companies Holding
    Certificates of Authority as Acceptable Sureties on Federal Bonds and as
    Acceptable Reinsurance Companies:" and (4) holding a certificate of
    authority to transact surety business in the State of California issued by
    the Director of the Department of Insurance. The GMP shall be increased by
    the reasonable costs and expenses related to obtaining each such
    construction performance bond.

    16.2. Reference General Conditions Attachment A - Contractor's Insurance,
    for clarification of limits of liability insurance.

    Ledcor Petty Construction. L.P. - California License No. 818635-B

    Contractors are required by law to be licensed and regulated by the
    Contractor's State License Board. Any questions concerning a contractor may
    be referred to the registrar of the Board whose address is:

                                   Contractors State License Board
                                   9835 Goeth Road
                                   Sacramento, CA 95826

This Agreement is entered into as of the day and year first written above and is
executed in at least three original copies, of which one is to be delivered to
the Contractor, one to the Architect for use in the administration of the
Contract, and the remainder to the Owner.

PEONY ACQUISITIONS LLC
By : -s- Peony Acquisitions Inc.
     Manager & Sale Member                  -s- Mike Fisher
-----------------------------------         ------------------------------------
OWNER (Signature)                           CONTRACTOR (Signature)
By : -s- Edward R. Zaval
         Edward R. Zaval
         Sr. V.P.                           MILK FISHER, SENIOR VICE PRESIDENT
-----------------------------------         ------------------------------------
(Printed name and title)                    (Printed name and title)

(C) 1920, 1925, 1951, 1961, 1963, 1967, 1974, 1978, 1987, (C) 1997 by The
American Institute of Architects. Reproduction of the material herein or
substantial quotation of its provisions without written permission of the AIA
violates the copyright laws of the United States and will subject he violate to
legal prosecution.
WARNING: Unlicensed photocopying violates U.S. copyright laws and will subject
the violator to legal prosecution. This document was electronically produced
with permission of the AIA and can be reproduced in accordance with your license
without violation until the date of expiration as noted below. User Document:
a111-1977 neurocrine cost of work 9.12 -- 9/19/2003. AIA License Number 1013349,
which expires on 2/2/2004.

[AIA LOGO]

(C)1997 AIA(R)
AIA DOCUMENT A111 - 1997
OWNER - CONTRACTOR AGREEMENT

The American Institute of Architects
1735 New York Avenue, N.W.
Washington, D.C. 20006-5292

                                                                              26

<PAGE>

                                 ATTACHMENT 'A'
                   TO AGREEMENT BETWEEN OWNER AND CONTRACTOR

<TABLE>
<S>                                             <C>                     <C>
PROJECT: PHASE 1- NEUROCRINE BIOSCIENCES                                LEDCOR PETTY CONSTRUCTION
                                                General Conditions      9466 BLACK MOUNTAIN ROAD. #200
                                                     09/19/03           SAN DIEGO, CA 92126-4500
</TABLE>

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------
                                                              LABOR      BURDEN       MAT'L       LABOR     BURDEN      MAT'L
TASK              DESCRIPTION            QUANTITY    UNIT      UNIT        41%        UNIT        TOTAL      TOTAL      TOTAL
------------------------------------------------------------------------------------------------------------------------------
<S>       <C>                            <C>         <C>    <C>         <C>         <C>         <C>        <C>        <C>
GC-110    PROJECT MANAGER                   52        WK    $1,800.00   $  738.00   $  125.00   $ 93,600   $ 38,376   $  6,500
GC-111    PROJECT EXECUTIVE                 20        WK    $2,000.00   $  820.00   $  125.00   $ 40,000   $ 16,400   $  2,500
GC-112    PRE-CONSTRUCTION SERVICES         20        WK    $2,500.00   $1,025.00   $  500,00   $ 50,000   $ 20,500   $ 10,000
GC-120    SUPERINTENDENT                    52        WK    $1,700.00   $  697.00   $  125.00   $ 88,400   $ 36,244   $  6,500
GC-121    SUPERINTENDENT                    52        WK    $1,700.00   $  697.00   $  125.00   $ 88,400   $ 36,244   $  6,500
GC-122    SUPERINTENDENT                    30        WK    $1,700.00   $  697.00   $  125.00   $ 51,000   $ 20,910   $  3,750
GC-123    SUPERINTENDENT                    30        WK    $1,700.00   $  697.00   $  125.00   $ 51,000   $ 20,910   $  3,750
GC-130    PROJECT ENGINEER                  47        WK    $1,300.00   $  533.00   $  125.00   $ 61,100   $ 25,051   $  5,875
GC-140    PROJECT COORDINATOR               47        WK    $  900.00   $  369.00               $ 42,300   $ 17,343
GC-150    COMPUTER SERVICES                 12        MO                            $  600.00                         $  7,200
GC-200    MOVE-IN & MOVE-OUT                 1        LS                            $6,000.00                         $  6,000
GC-330    TELEPHONE                         12        MO                            $2,500.00                         $ 30,000
GC-360    JOB OFFICE RENT                   12        MO                            $1,500.00                         $ 18,000
GC-361    JOB OFFICE RENT - CONFERENCE      12        MO                            $  700.00                         $  8,400
GC-370    JOB OFFICE SUPPLIES & EQUIP,      12        MO                $1,750.00   $2,700.00              $ 21,000   $ 32,400
GC-720    PHOTOGRAPHS/PUBLIC RELATIONS       1        LS                            $2,500.00                         $  2,500
01-010    TEMPORARY ELECTRICAL                        MO                            JOB COST
01-020    DRINKING WATER - office           12        MO                            $  200.00                         $  2,400
01-030    TOOLS-EXPENDABLE                            MO                             JOB COST
01-100    TEMPORARY TOILETS                 12        MO                            $1,600.00                         $ 19,200
01-110    BARRICADES/TEMP. PROTECTION                 LS                             JOB COST
01-120    SECURITY SERVICES                           WK                             JOB COST
01-135    BLUEPRINTS & REPRODUCTION                   LS                                 EXCL
01-140    TESTING & INSPECTION                        LS                                 EXCL
01-160    CONSTRUCTION CLEANUP                        LS                             JOB COST
01-170    TRASH REMOVAL/DUMPSTER                      LS                             JOB COST
01-185    STORAGE CONTAINERS                          MO                             JOB COST
01-190    SAFETY SUPPLIES & INSPECTION                MO                             JOB COST
80-400    PERFORMANCE BOND                            LS                                 EXCL
------------------------------------------------------------------------------------------------------------------------------
                         SUBTOTALS                                                              $565,800   $252,978   $171,475

        GENERAL REQUIREMENTS TOTAL                                                                                    $990,253
</TABLE>

MONTHS:                   12
WEEKS:                    52
COST/WEEK:                                 $19,043

COST/MONTH:                                $82,521

DEFINITIONS
IN FEE:   COST OF THIS ITEM IS INCLUDED IN OUR FEE STRUCTURE
EXCL:     COST OF THIS ITEM IS EXCLUDED FROM GENERAL CONDITIONS
JOB COST: COST OF THIS, IF REQUIRED, WILL BE PART OF JOB COST WHEN DETERMINABLE

                                                                              27
<PAGE>

                        1997 Edition - Electronic Format

                                              AIA Document A201 - 1997

THIS DOCUMENT HAS IMPORTANT LEGAL CONSEQUENCES. CONSULTATION WITH AN ATTORNEY IS
ENCOURAGED WITH RESPECT TO ITS COMPLETION OR MODIFICATION. AUTHENTICATION OF
THIS ELECTRONICALLY DRAFTED AIA DOCUMENT MAY BE MADE BY USING AIA DOCUMENT D401.

This document has been approved and endorsed by The Associated General
Contractors of America.

General Conditions of the Contract for Construction between Peony Acquisitions,
LLC and Ledcor Petty Construction, L.P., dated September 19, 2003.

TABLE OF ARTICLES

    1.  GENERAL PROVISIONS

    2.  OWNER

    3.  CONTRACTOR

    4.  ADMINISTRATION OF THE CONTRACT

    5.  SUBCONTRACTORS

    6.  CONSTRUCTION BY OWNER OR BY SEPARATE CONTRACTORS

    7.  CHANGES IN THE WORK

    8.  TIME

    9.  PAYMENTS AND COMPLETION

    10. PROTECTION OF PERSONS AND PROPERTY

    11. INSURANCE AND BONDS

    12. UNCOVERING AND CORRECTION OF WORK

    13. MISCELLANEOUS PROVISIONS

    14. TERMINATION OR SUSPENSION OF THE CONTRACT

INDEX
Acceptance of Nonconforming Work
    9.6.6, 9.9.3, 12.3
Acceptance of Work
    9.6.6, 9.8.2, 9.9.3, 9.10.1, 9.10.3, 12.3
Access to Work
    3.16, 6.2.1, 12.1
Accident Prevention
    4.2.3, 10
Acts and Omissions
    3.2, 3.3.2, 3.12.8, 3.18, 4.2.3, 4.3.8, 4.4.1, 8.3.1, 9.5.1, 10.2.5, 13.4.2,
    13.7, 14.1
Addenda
    1.1.1, 3.11
Additional Costs, Claims for
    4.3.4, 4.3.5, 4.3.6, 6.1.1, 10.3
Additional Inspections and Testing
    9.8.3, 12.2.1, 13.5
Additional Time, Claims for
    4.3.4, 4.3.7, 8.3.2
ADMINISTRATION OF THE CONTRACT
    3.1.3, 4, 9.4, 9.5

(C) Copyright 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1967,
1970, 1976, 1987, 1997 by The American Institute of Architects. Fifteenth
Edition. Reproduction of the material herein or substantial quotation of its
provisions without written permission of the AIA violates the copyright laws of
the United States and will subject the violate to legal prosecution.
WARNING: Unlicensed photocopying violates U.S. copyright laws and will subject
the violator to legal prosecution. This document was electronically produced
with permission of the AIA and can be reproduced in accordance with your license
without violation until the date of expiration as noted below. User Document:
a-201 gc's for neurocrine 9.12 -- 9/19/2003. AIA License Number 1106029, which
expires on 3/28/2004.

[AIA LOGO]

(C)1997 AIA(R)
AIA DOCUMENT A201 - 1997
GENERAL CONDITIONS OF THE CONTRACT FOR CONSTRUCTION

The American Institute of Architects
1735 New York Avenue, N.W.
Washington, D.C. 20006-5292

                                                                               1
<PAGE>

THIS DOCUMENT HAS IMPORTANT LEGAL CONSEQUENCES. CONSULTATION WITH AN ATTORNEY IS
ENCOURAGED WITH RESPECT TO ITS COMPLETION OR MODIFICATION. AUTHENTICATION OF
THIS ELECTRONICALLY DRAFTED AIA DOCUMENT MAY BE MADE BY USING AIA DOCUMENT D401.

This document has been approved and endorsed by The Associated General
Contractors of America.

Advertisement or Invitation to Bid
    1.1.1
Aesthetic Effect
    4.2.13, 4.5.1
Allowances
    3.8
All-risk Insurance
    11.4.1.1
Applications for Payment
    4.2.5, 7.3.8, 9.2,9.3, 9.4, 9.5.1, 9.6.3, 9.7.1, 9.8.5, 9.10, 11.1.3,
    14.2.4, 14.4.3
Approvals
    2.4, 3.1.3, 3.5, 3.10.2, 3.12, 4.2.7, 9.3.2, 13.4.2, 13.5
Arbitration
    4.3.3. 4.4, 4.5.1. 4.5.2, 4.6, 8.3.1, 9.7.1, 11.4.9, 11.4.10
Architect
    4.1
Architect, Definition of
    4.1.1
Architect, Extent of Authority
    2.4, 3.12.7, 4.2, 4.3.6, 4.4, 5.2, 6.3, 7.1.2, 7.3.6, 7.4, 9.2, 9.3.1, 9.4,
    9.5, 9.8.3, 9.10.1, 9.10.3, 12.1, 12.2.1, 13.5.1, 13.5.2, 14.2.2, 14.2.4
Architect, Limitations of Authority and Responsibility
    2.1.1, 3.3.3, 3.12.4, 3.12.8, 3.12.10, 4.1.2, 4.2.1, 4.2.2, 4.2.3, 4.2.6,
    4.2.7, 4.2.10, 4.2.12, 4.2.13, 4.4, 5.2.1, 7.4, 9.4.2, 9.6.4, 9.6.6
Architect's Additional Services and Expenses
    2.4, 11.4.1.1, 12.2.1, 13.5.2, 13.5.3, 14.2.4
Architect's Administration of the Contract
    3.1.3, 4.2, 4.3.4, 4.4, 9.4, 9.5
Architect's Approvals
    2.4, 3.1.3, 3.5.1, 3.10.2, 4.2.7
Architect's Authority to Reject Work
    3.5.1, 4.2.6, 12.1.2, 12.2.1
Architect's Copyright
    1.6
Architect's Decisions
    4.2.6, 4.2.7, 4.2.11, 4.2.12, 4.2.13, 4.3.4, 4.4.1, 4.4.5, 4.4.6, 4.5, 6.3,
    7.3.6, 7.3.8, 8.1.3, 8.3.1, 9.2, 9.4, 9.5.1, 9.8.4, 9.9.1, 13.5.2, 14.2.2,
    14.2.4
Architect's Inspections
    4.2.2, 4.2.9, 4.3.4, 9.4.2, 9.8.3, 9.9.2, 9.10.1, 13.5
Architect's Instructions
    3.2.3, 3.3.1, 4.2.6, 4.2.7, 4.2.8, 7.4.1, 12.1, 13.5.2
Architect's Interpretations
    4.2.11, 4.2.12, 4.3.6
Architect's Project Representative
    4.2.10
Architect's Relationship with Contractor
    1.1.2, 1.6, 3.1.3, 3.2.1, 3.2.2, 3.2.3, 3.3.1, 3.4.2, 3.5.1, 3.7.3, 3.10,
    3.11, 3.12, 3.16, 3.18, 4.1.2, 4.1.3, 4.2, 4.3.4, 4.4.1, 4.4.7, 5.2, 6.2.2,
    7, 8.3.1, 9.3, 9.4, 9.5, 9.7, 9.8, 9.9, 10.2.6, 10.3, 11.3, 11.4.7, 12,
    13.4.2, 13.5
Architect's Relationship with Subcontractors
    1.1.2, 4.2.3, 4.2.4, 4.2.6, 9.6.3, 9.6.4, 11.4.7
Architect's Representations
    9.4.2, 9.5.1, 9.10.1
Architect's Site Visits
    4.2.2, 4.2.5, 4.2.9, 4.3.4, 9.4.2, 9.5.1, 9.9.2, 9.10.1, 13.5
Asbestos
    10.3.1
Attorneys' Fees
    3.18.1, 9.10.2, 10.3.3
Award of Separate Contracts
    6.1.1, 6.1.2
Award of Subcontracts and Other Contracts for Portions of the Work
    5.2
Basic Definitions
    1.1
Bidding Requirements
    1.1.1, 1.1.7, 5.2.1, 11.5.1
Boiler and Machinery Insurance
    11.4.2
Bonds, Lien
    9.10.2
Bonds, Performance, and Payment
    7.3.6.4, 9.6.7, 9.10.3, 11.4.9, 11.5
Building Permit
    3.7.1
Capitalization
    1.3
Certificate of Substantial Completion
    9.8.3, 9.8.4, 9.8.5
Certificates for Payment
    4.2.5, 4.2.9, 9.3.3, 9.4, 9.5, 9.6.1, 9.6.6, 9.7.1, 9.10.1, 9.10.3, 13.7,
    14.1.1.3, 14.2.4
Certificates of Inspection, Testing or Approval
    13.5.4
Certificates of Insurance
    9.10.2, 11.1.3
Change Orders
    1.1.1, 2.4.1, 3.4.2, 3.8.2.3, 3.11.1, 3.12.8, 4.2.8, 4.34, 4.3.9, 5.2.3,
    7.1, 7.2, 7.3, 8.3.1, 9.3.1.1, 9.10.3, 11.4.1.2, 11.4.4, 11.4.9, 12.1.2
Change Orders, Definition of
    7.2.1
CHANGES IN THE WORK
    3.11, 4.2.8, 7, 8.3.1, 9.3.1.1, 11.4.9
Claim, Definition of
    4.3.1
Claims and Disputes
    3.2.3, 4.3, 4.4, 4.5, 4.6, 6.1.1, 6.3, 7.3.8, 9.3.3, 9.10.4, 10.3.3
Claims and Timely Assertion of Claims

(C) Copyright 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1967,
1970, 1976, 1987, 1997 by The American Institute of Architects. Fifteenth
Edition. Reproduction of the material herein or substantial quotation of its
provisions without written permission of the AIA violates the copyright laws of
the United States and will subject the violate to legal prosecution.
WARNING: Unlicensed photocopying violates U.S. copyright laws and will subject
the violator to legal prosecution. This document was electronically produced
with permission of the AIA and can be reproduced in accordance with your license
without violation until the date of expiration as noted below. User Document:
a-201 gc' s for neurocrine 9.12 -- 9/19/2003. AIA License Number 1106029, which
expires on 3/28/2004.

[AIA LOGO]

(C)1997 AIA(R)
AIA DOCUMENT A201 - 1997
GENERAL CONDITIONS OF THE CONTRACT FOR CONSTRUCTION

The American Institute of Architects
1735 New York Avenue, N.W.
Washington, D.C. 20006-5292

                                                                               2
<PAGE>

THIS DOCUMENT HAS IMPORTANT LEGAL CONSEQUENCES. CONSULTATION WITH AN ATTORNEY IS
ENCOURAGED WITH RESPECT TO ITS COMPLETION OR MODIFICATION. AUTHENTICATION OF
THIS ELECTRONICALLY DRAFTED AIA DOCUMENT MAY BE MADE BY USING AIA DOCUMENT D401.

This document has been approved and endorsed by The Associated General
Contractors of America.

    4.6.5
Claims for Additional Cost
    3.2.3, 4.3.4, 4.3.5, 4.3.6, 6.1.1, 7.3.8, 10.3.2
Claims for Additional Time
    3.2.3, 4.3.4, 4.3.7, 6.1.1, 8.3.2, 10.3.2
Claims for Concealed or Unknown Conditions
    4.3.4
Claims for Damages
    3.2.3, 3.18, 4.3.10, 6.1.1, 8.3.3, 9.5.1, 9.6.7, 10.3.3, 11.1.1, 11.4.5,
    11.4.7, 14.1.3, 14.2.4
Claims Subject to Arbitration
    4.4.1, 4.5.1, 4.6.1
Cleaning Up
    3.15, 6.3
Commencement of Statutory Limitation Period
    13.7
Commencement of the Work, Conditions Relating to
    2.2.1, 3.2.1, 3.4.1, 3.7.1, 3.10.1, 3.12.6, 4.3.5, 5.2.1, 5.2.3, 6.2.2,
    8.1.2, 8.2.2, 8.3.1, 11.1, 11.4.1, 11.4.6, 11.5.1
Commencement of the Work, Definition of
    8.1.2
Communications Facilitating Contract Administration
    3.9.1, 4.2.4
Completion, Conditions Relating to
    1.6.1, 3.4.1, 3.11, 3.15, 4.2.2, 4.2.9, 8.2, 9.4.2, 9.8, 9.9.1, 9.10, 12.2,
    13.7, 14.1.2
COMPLETION, PAYMENTS AND
    9
Completion, Substantial
    4.2.9, 8.1.1, 8.1.3, 8.2.3, 9.4.2, 9.8, 9.9.1, 9.10.3, 9.10.4.2, 12.2, 13.7
Compliance with Laws
    1.6.1, 3.2.2, 3.6, 3.7, 3.12.10, 3.13, 4.1.1, 4.4.8, 4.6.4, 4.6.6, 9.6.4,
    10.2.2, 11.1, 11.4, 13.1, 13.4, 13.5.1, 13.5.2, 13.6, 14.1.1, 14.2.1.3
Concealed or Unknown Conditions
    4.3.4, 8.3.1, 10.3
Conditions of the Contract
    1.1.1, 1.1.7, 6.1.1, 6.1.4
Consent, Written
    1.6, 3.4.2, 3.12.8, 3.14.2, 4.1.2, 4.3.4, 4.6.4, 9.3.2, 9.8.5, 9.9.1,
    9.10.2, 9.10.3, 11.4.1, 13.2, 13.4.2
CONSTRUCTION BY OWNER OR BY SEPARATE CONTRACTORS
    1.1.4, 6
Construction Change Directive, Definition of
    7.3.1
Construction Change Directives
    1.1.1, 3.12.8, 4.2.8, 4.3.9, 7.1, 7.3, 9.3.1.1
Construction Schedules, Contractor's
    1.4.1.2, 3.10, 3.12.1, 3.12.2, 4.3.7.2, 6.1.3
Contingent Assignment of Subcontracts
    5.4, 14.2.2.2
Continuing Contract Performance
    4.3.3
Contract, Definition of
    1.1.2
CONTRACT, TERMINATION OR SUSPENSION OF THE
    5.4.1.1, 11.4.9, 14
Contract Administration
    3.1.3, 4, 9.4, 9.5
Contract Award and Execution, Conditions Relating to
    3.7.1, 3.10, 5.2, 6.1, 11.1.3, 11.4.6, 11.5.1
Contract Documents, The
    1.1, 1.2
Contract Documents, Copies Furnished and Use of
    1.6, 2.2.5, 5.3
Contract Documents, Definition of
    1.1.1
Contract Sum
    3.8, 4.3.4, 4.3.5, 4.4.5, 5.2.3, 7.2, 7.3, 7.4, 9.1, 9.4.2, 9.5.1.4, 9.6.7,
    9.7, 10.3.2, 11.4.1, 14.2.4, 14.3.2
Contract Sum, Definition of
    9.1
Contract Time
    4.3.4, 4.3.7, 4.4.5, 5.2.3, 7.2.1.3, 7.3, 7.4, 8.1.1, 8.2, 8.3.1, 9.5.1,
    9.7, 10.3.2, 12.1.1, 14.3.2
Contract Time, Definition of
    8.1.1
CONTRACTOR
    3
Contractor, Definition of
    3.1, 6.1.2
Contractor's Construction Schedules
    1.4.1.2, 3.10, 3.12.1, 3.12.2, 4.3.7.2, 6.1.3
Contractor's Employees
    3.3.2, 3.4.3, 3.8.1, 3.9, 3.18.2, 4.2.3, 4.2.6, 10.2, 10.3, 11.1.1, 11.4.7,
    14.1, 14.2.1.1,
Contractor's Liability Insurance
    11.1
Contractor's Relationship with Separate Contractors and Owner's Forces
    3.12.5, 3.14.2, 4.2.4, 6, 11.4.7, 12.1.2, 12.2.4
Contractor's Relationship with Subcontractors
    1.2.2, 3.3.2, 3.18.1, 3.18.2, 5, 9.6.2, 9.6.7, 9.10.2, 11.4.1.2, 11.4.7,
    11.4.8
Contractor's Relationship with the Architect
    1.1.2, 1.6, 3.1.3, 3.2.1, 3.2.2, 3.2.3, 3.3.1, 3.4.2, 3.5.1, 3.7.3, 3.10,
    3.11, 3.12, 3.16, 3.18, 4.1.2, 4.1.3, 4.2, 4.3.4, 4.4.1, 4.4.7, 5.2, 6.2.2,
    7, 8.3.1, 9.2, 9.3, 9.4, 9.5, 9.7, 9.8, 9.9, 10.2.6, 10.3, 11.3,

--------------------------
(C) Copyright 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1967,
1970, 1976, 1987, 1997 by The American Institute of Architects. Fifteenth
Edition. Reproduction of the material herein or substantial quotation of its
provisions without written permission of the AIA violates the copyright laws of
the United States and will subject the violate to legal prosecution.
WARNING: Unlicensed photocopying violates U.S. copyright laws and will subject
the violator to legal prosecution. This document was electronically produced
with permission of the AIA and can be reproduced in accordance with your license
without violation until the date of expiration as noted below. User Document:
a-201 gc' s for neurocrine 9.12 -- 9/19/2003. AIA License Number 1106029, which
expires on 3/28/2004.

[AIA LOGO]

(C)1997 AIA(R)
AIA DOCUMENT A201 - 1997
GENERAL CONDITIONS OF THE CONTRACT FOR CONSTRUCTION

The American Institute of Architects
1735 New York Avenue, N.W.
Washington, D.C. 20006-5292

                                                                               3

<PAGE>

THIS DOCUMENT HAS IMPORTANT LEGAL CONSEQUENCES. CONSULTATION WITH AN ATTORNEY IS
ENCOURAGED WITH RESPECT TO ITS COMPLETION OR MODIFICATION. AUTHENTICATION OF
THIS ELECTRONICALLY DRAFTED AIA DOCUMENT MAY BE MADE BY USING AIA DOCUMENT D401.

This document has been approved and endorsed by The Associated General
Contractors of America.

    11.4.7, 12, 13.4.2, 13.5
Contractor's Representations
    1.5.2, 3.5.1, 3.12.6, 6.2.2, 8.2.1, 9.3.3, 9.8.2
Contractor's Responsibility for Those Performing the Work
    3.3.2, 3.18, 4.2.3, 4.3.8, 5.3.1, 6.1.3, 6.2, 6.3, 9.5.1, 10
Contractor's Review of Contract Documents
    1.5.2, 3.2, 3.7.3
Contractor's Right to Stop the Work
    9.7
Contractor's Right to Terminate the Contract
    4.3.10, 14.1
Contractor's Submittals
    3.10, 3.11, 3.12, 4.2.7, 5.2.1, 5.2.3, 7.3.6, 9.2, 9.3, 9.8.2, 9.8.3, 9.9.1,
    9.10.2, 9.10.3, 11.1.3, 11.5.2
Contractor's Superintendent
    3.9, 10.2.6
Contractor's Supervision and Construction Procedures
    1.2.2, 3.3, 3.4, 3.12.10, 4.2.2, 4.2.7, 4.3.3, 6.1.3, 6.2.4, 7.1.3, 7.3.4,
    7.3.6, 8.2, 10, 12, 14
Contractual Liability Insurance
    11.1.1.8, 11.2, 11.3
Coordination and Correlation
    1.2, 1.5.2, 3.3.1, 3.10, 3.12.6, 6.1.3, 6.2.1
Copies Furnished of Drawings and Specifications
    1.6, 2.2.5, 3.11
Copyrights
    1.6, 3.17
Correction of Work
    2.3, 2.4, 3.7.4, 4.2.1, 9.4.2, 9.8.2, 9.8.3, 9.9.1, 12.1.2, 12.2, 13.7.1.3
Correlation and Intent of the Contract Documents
    1.2
Cost, Definition of
    7.3.6
Costs
    2.4, 3.2.3, 3.7.4, 3.8.2, 3.15.2, 4.3, 5.4.2, 6.1.1, 6.2.3, 7.3.3.3, 7.3.6,
    7.3.7, 7.3.8, 9.10.2, 10.3.2, 10.5, 11.3, 11.4, 12.1, 12.2.1, 12.2.4, 13.5,
    14
Cutting and Patching
    6.2.5, 3.14
Damage to Construction of Owner or Separate Contractors
    3.14.2, 6.2.4, 9.2.1.5, 10.2.1.2, 10.2.5, l0.6, 11.1, 11.4, 12.2.4
Damage to the Work
    3.14.2, 9.9.1, 10.2.1.2, 10.2.5, 10.6, 11.4, 12.2.4
Damages, Claims for
    3.2.3, 3.18, 4.3.10, 6.1.1, 8.3.3, 9.5.1, 9.6.7, 10.3.3, 11.1.1, 11.4.5,
    11.4.7, 14.1.3, 14.2.4
Damages for Delay
    6.1.1, 8.3.3, 9.5.1.6, 9.7, 10.3.2
Date of Commencement of the Work, Definition of
    8.1.2
Date of Substantial Completion, Definition of
    8.1.3
Day, Definition of
    8.1.4
Decisions of the Architect
    4.2.6, 4.2.7, 4.2.11, 4.2.12, 4.2.13, 4.3.4, 4.4.1, 4.4.5, 4.4.6, 4.5, 6.3,
    7.3.6, 7.3.8, 8.1.3, 8.3.1, 9.2, 9.4, 9.5.1, 9.8.4, 9.9.1, 13.5.2, 14.2.2,
    14.2.4
Decisions to Withhold Certification
    9.4.1, 9.5, 9.7, 14.1.1.3
Defective or Nonconforming Work, Acceptance, Rejection and Correction of
    2.3, 2.4, 3.5.1, 4.2.6, 6.2.5, 9.5.1, 9.5.2, 9.6.6, 9.8.2, 9.9.3, 9.10.4,
    12.2.1, 13.7.1.3
Defective Work, Definition of
    3.5.1
Definitions
    1.1, 2.1.1, 3.1, 3.5.1, 3.12.1, 3.12.2, 3.12.3, 4.1.1, 4.3.1, 5.1, 6.1.2,
    7.2.1, 7.3.1, 7.3.6, 8.1, 9.1, 9.8.1
Delays and Extensions of Time
    3.2.3, 4.3.1, 4.3.4, 4.3.7, 4.4.5, 5.2.3, 7.2.1, 7.3.1, 7.4.1, 7.5.1, 8.3,
    9.5.1, 9.7.1, 10.3.2, 10.6.1, 14.3.2
Disputes
    4.1.4, 4.3, 4.4, 4.5, 4.6, 6.3, 7.3.8
Documents and Samples at the Site
    3.11
Drawings, Definition of
    1.1.5
Drawings and Specifications, Use and Ownership of
    1.1.1, 1.3, 2.2.5, 3.11, 5.3
Effective Date of Insurance
    8.2.2, 11.1.2
Emergencies
    4.3.5, 10.6, 14.1.1.2
Employees, Contractor's
    3.3.2, 3.4.3, 3.8.1, 3.9, 3.18.2, 4.2.3, 4.2.6, 10.2, 10.3, 11.1.1, 11.4.7,
    14.1, 14.2.1.1
Equipment, Labor, Materials and
    1.1.3, 1.1.6, 3.4, 3.5.1, 3.8.2, 3.8.3, 3.12, 3.13, 3.15.1, 4.2.6, 4.2.7,
    5.2.1, 6.2.1, 7.3.6, 9.3.2, 9.3.3, 9.5.1.3, 9.10.2, 10.2.1, 10.2.4, 14.2.1.2
Execution and Progress of the Work
    1.1.3, 1.2.1, 1.2.2, 2.2.3, 2.2.5, 3.1, 3.3, 3.4, 3.5, 3.7, 3.10, 3.12,
    3.14, 4.2.2, 4.2.3, 4.3.3, 6.2.2, 7.1.3, 7.3.4, 8.2, 9.5, 9.9.1, 10.2, 10.3,
    12.2, 14.2, 14.3
Extensions of Time
    3.2.3, 4.3.1, 4.3.4, 4.3.7, 4.4.5, 5.2.3, 7.2.1, 7.3, 7.4.1, 9.5.1, 9.7.1,
    10.3.2, 10.6.1, 14.3.2
Failure of Payment
    4.3.6, 9.5.1.3, 9.7, 9.10.2, 14.1.1.3, 14.2.1.2, 13.6
Faulty Work

(C) Copyright 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1967,
1970, 1976, 1987, 1997 by The American Institute of Architects. Fifteenth
Edition. Reproduction of the material herein or substantial quotation of its
provisions without written permission of the AIA violates the copyright laws of
the United States and will subject the violate to legal prosecution.
WARNING: Unlicensed photocopying violates U.S. copyright laws and will subject
the violator to legal prosecution. This document was electronically produced
with permission of the AIA and can be reproduced in accordance with your license
without violation until the date of expiration as noted below. User Document:
a-201 gc' s for neurocrine 9.12 -- 9/19/2003. AIA License Number 1106029, which
expires on 3/28/2004.

[AIA LOGO]

(C)1997 AIA(R)
AIA DOCUMENT A201 - 1997
GENERAL CONDITIONS OF THE CONTRACT FOR CONSTRUCTION

The American Institute of Architects
1735 New York Avenue, N.W.
Washington, D.C. 20006-5292

                                                                               4
<PAGE>

THIS DOCUMENT HAS IMPORTANT LEGAL CONSEQUENCES. CONSULTATION WITH AN ATTORNEY IS
ENCOURAGED WITH RESPECT TO ITS COMPLETION OR MODIFICATION. AUTHENTICATION OF
THIS ELECTRONICALLY DRAFTED AIA DOCUMENT MAY BE MADE BY USING AIA DOCUMENT D401.

This document has been approved and endorsed by The Associated General
Contractors of America.

    (See Defective or Nonconforming Work)
Final Completion and Final Payment
    4.2.1, 4.2.9, 4.3.2, 9.8.2, 9.10, 11.1.2, 11.1.3, 11.4.1, 11.4.5, 12.3.1,
    13.7, 14.2.4, 14.4.3
Financial Arrangements, Owner's
    2.2.1, 13.2.2, 14.1.1.5
Fire and Extended Coverage Insurance
    11.4
GENERAL PROVISIONS
    1
Governing Law
    13.1
Guarantees (See Warranty)
Hazardous Materials
    10.2.4, 10.3, 10.5
Identification of Contract Documents
    1.5.1
Identification of Subcontractors and Suppliers
    5.2.1
Indemnification
    3.17, 3.18, 9.10.2, 10.3.3, 10.5, 11.4.1.2, 11.4.7
Information and Services Required of the Owner
    2.1.2, 2.2, 3.2.1, 3.12.4, 3.12.10, 4.2.7, 4.3.3, 6.1.3, 6.1.4, 6.2.5,
    9.3.2, 9.6.1, 9.6.4, 9.9.2, 9.10.3, 10.3.3, 11.2, 11.4, 13.5.1, 13.5.2,
    14.1.1.4, 14.1.4
Injury or Damage to Person or Property
    4.3.8, 10.2,10.6
Inspections
    3.1.3, 3.3.3, 3.7.1, 4.2.2, 4.2.6, 4.2.9, 9.4.2, 9.8.2, 9.8.3, 9.9.2,
    9.10.1, 12.2.1, 13.5
Instructions to Bidders
    1.1.1
Instructions to the Contractor
    3.2.3, 3.3.1, 3.8.1, 4.2.8, 5.2.1, 7, 12, 8.2.2, 13.5.2
Insurance
    3.18.1, 6.1.1, 7.3.6, 8.2.1, 9.3.2, 9.8.4, 9.9.1, 9.10.2, 9.10.5, 11
Insurance, Boiler and Machinery
    11.4.2
Insurance, Contractor's Liability
    11.1
Insurance, Effective Date of
    8.2.2, 11.1.2
Insurance, Loss of Use
    11.4.3
Insurance, Owner's Liability
    11.2
Insurance, Project Management Protective Liability
    11.3
Insurance, Property
    10.2.5, 11.4
Insurance, Stored Materials
    9.3.2, 11.4.1.4
INSURANCE AND BONDS
    11
Insurance Companies, Consent to Partial Occupancy
    9.9.1, 11.4.1.5
Insurance Companies, Settlement with
    11.4.10
Intent of the Contract Documents
    1.2.1, 4.2.7, 4.2.12, 4.2.13, 7.4
Interest
    13.6
Interpretation
    1.2.3, 1.4, 4.1.1, 4.3.1, 5.1, 6.1.2, 8.1.4
Interpretations, Written
    4.2.11, 4.2.12, 4.3.6
Joinder and Consolidation of Claims Required
    4.6.4
Judgment on Final Award
    4.6.6
Labor and Materials, Equipment
    1.1.3, 1.1.6, 3.4, 3.5.1, 3.8.2, 3.8.3, 3.12, 3.13, 3.15.1, 42.6, 4.2.7,
    5.2.1, 6.2.1, 7.3.6, 9.3.2, 9.3.3, 9.5.1.3, 9.10.2, 10.2.1, 10.2.4, 14.2.1.2
Labor Disputes
    8.3.1
Laws and Regulations
    1.6, 3.2.2, 3.6, 3.7, 3.12.10, 3.13, 4.1.1, 4.4.8, 4.6, 9.6.4, 9.9.1,
    10.2.2, 11.1, 11.4, 13.1, 13.4, 13.5.1, 13.5.2, 13.6, 14
Liens
    2.1.2, 4.4.8, 8.2.2, 9.3.3, 9.10
Limitation on Consolidation or Joinder
    4.6.4
Limitations, Statutes of
    4.6.3, 12.2.6, 13.7
Limitations of Liability
    2.3, 3.2.1, 3.5.1, 3.7.3, 3.12.8, 3.12.10, 3.17, 3.18, 4.2.6, 4.2.7, 4.2.12,
    6.2.2, 9.4.2, 9.6.4, 9.6.7, 9.10.4, 10.3.3, 10.2.5, 11.1.2, 11.2.1, 11.4.7,
    12.2.5, 13.4.2
Limitations of Time
    2.1.2, 2.2, 2.4, 3.2.1, 3.7.3, 3.10, 3.11, 3.12.5, 3.15.1, 4.2.7, 4.3, 4.4,
    4.5, 4.6, 5.2, 5.3, 5.4, 6.2.4, 7.3, 7.4, 8.2, 9.2, 9.3.1, 9.3.3, 9.4.1,
    9.5, 9.6, 9.7, 9.8, 9.9, 9.10, 11.1.3, 11.4.1.5, 11.4.6, 11.4.10, 12.2,
    13.5, 13.7, 14
Loss of Use Insurance
    11.4.3
Material Suppliers
    1.6, 3.12.1, 4.2.4, 4.2.6, 5.2.1, 9.3, 9.4.2, 9.6, 9.10.5
Materials, Hazardous
    10.2.4, 10.3, 10.5
Materials, Labor, Equipment and
    1.1.3, 1.1.6, 1.6.1, 3.4, 3.5.1, 3.8.2, 3.8.23, 3.12, 3.13,

(C) Copyright 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1967,
1970, 1976, 1987, 1997 by The American Institute of Architects. Fifteenth
Edition. Reproduction of the material herein or substantial quotation of its
provisions without written permission of the AIA violates the copyright laws of
the United States and will subject the violate to legal prosecution.
WARNING: Unlicensed photocopying violates U.S. copyright laws and will subject
the violator to legal prosecution. This document was electronically produced
with permission of the AIA and can be reproduced in accordance with your license
without violation until the date of expiration as noted below. User Document:
a-201 gc' s for neurocrine 9.12 -- 9/19/2003. AIA License Number 1106029, which
expires on 3/28/2004.

[AIA LOGO]

(C)1997 AIA(R)
AIA DOCUMENT A201 - 1997
GENERAL CONDITIONS OF THE CONTRACT FOR CONSTRUCTION

The American Institute of Architects
1735 New York Avenue, N.W.
Washington, D.C. 20006-5292

                                                                               5

<PAGE>

THIS DOCUMENT HAS IMPORTANT LEGAL CONSEQUENCES. CONSULTATION WITH AN ATTORNEY IS
ENCOURAGED WITH RESPECT TO ITS COMPLETION OR MODIFICATION. AUTHENTICATION OF
THIS ELECTRONICALLY DRAFTED AIA DOCUMENT MAY BE MADE BY USING AIA DOCUMENT D401.

This document has been approved and endorsed by The Associated General
Contractors of America.

    3.15.1, 4.2.6, 4.2.7, 5.2.1, 6.2.1, 7.3.6, 9.3.2, 9.3.3, 9.5.1.3, 9.10.2,
    10.2.1, 10.2.4, 14.2.1.2
Means, Methods, Techniques, Sequences and Procedures of Construction
    3.3.1, 3.12.10, 4.2.2, 4.2.7, 9.4.2
Mechanic's Lien
    4.4.8
Mediation
    4.4.1, 4.4.5, 4.4.6, 4.4.8, 4.5, 4.6.1, 4.6.2, 8.3.1, 10.5
Minor Changes in the Work
    1.1.1, 3.12.8, 4.2.8, 4.3.6, 7.1, 7.4
MISCELLANEOUS PROVISIONS
    13
Modifications, Definition of
    1.1.1
Modifications to the Contract
    1.1.1, 1.1.2, 3.7.3, 3.11, 4.1.2, 4.2.1, 5.2.3, 7, 8.3.1, 9.7, 10.3.2,
    11.4.1
Mutual Responsibility
    6.2
Nonconforming Work, Acceptance of
    9.6.6, 9.9.3, 12.3
Nonconforming Work, Rejection and Correction of
    2.3, 2.4, 3.5.1, 4.2.6, 6.2.5, 9.5.1, 9.8.2, 9.9.3, 9.10.4, 12.2.1, 13.7.1.3
Notice
    2.2.1, 2.3, 2.4, 3.2.3, 3.3.1, 3.7.2, 3.7.4, 3.12.9, 4.3, 4.4.8, 4.6.5,
    5.2.1, 8.2.2, 9.7, 9.10, 10.2.2, 11.1.3, 11.4.6, 12.2.2, 12.2.4, 13.3,
    13.5.1, 13.5.2, 14.1, 14.2
Notice, Written
    2.3, 2.4, 3.3.1, 3.9, 3.12.9, 3.12.10, 4.3, 4.4.8, 4.6.5, 5.2.1, 8.2.2, 9.7,
    9.10, 10.2.2, 10.3, 11.1.3, 11.4.6, 12.2.2, 12.2.4, 13.3, 14
Notice of Testing and Inspections
    13.5.1, 13.5.2
Notice to Proceed
    8.2.2
Notices, Permits, Fees and
    2.2.2, 3.7, 3.13, 7.3.6.4, 10.2.2
Observations, Contractor's
    1.5.2, 3.2, 3.7.3, 4.3.4
Occupancy
    2.2.2, 9.6.6, 9.8, 11.4.1.5
Orders, Written
    1.1.1, 2.3, 3.9, 4.3.6, 7, 8.2.2, 11.4.9, 12.1, 12.2, 13.5.2, 14.3.1
OWNER
    2
Owner, Definition of
    2.1
Owner, Information and Services Required of the
    2.1.2, 2.2, 3.2.1, 3.12.4, 3.12.10, 4.2.7, 4.3.3, 6.1.3, 6.1.4, 6.2.5,
    9.3.2, 9.6.1, 9.6.4, 9.9.2, 9.10.3, 10.3.3, 11.2, 11.4, 13.5.1, 13.5.2,
    14.1.1.4, 14.1.4
Owner's Authority
    1.6, 2.1.1, 2.3, 2.4, 3.4.2, 3.8.1, 3.12.10, 3.14.2, 4.1.2, 4.1.3, 4.2.4,
    4.2.9, 4.3.6, 4.4.7, 5.2.1, 5.2.4, 5.4.1, 6.1, 6.3, 7.2.1, 7.3.1, 8.2.2,
    8.3.1, 9.3.1, 9.3.2, 9.5.1, 9.9.1, 9.10.2, 10.3.2, 11.1.3, 11.3.1, 11.4.3,
    11.4.10, 12.2.2, 12.3.1, 13.2.2, 14.3, 14.4
Owner's Financial Capability
    2.2.1, 13.2.2, 14.1.1.5
Owner's Liability Insurance
    11.2
Owner's Loss of Use Insurance
    11.4.3
Owner's Relationship with Subcontractors
    1.1.2, 5.2, 5.3, 5.4, 9.6.4, 9.10.2, 14.2.2
Owner's Right to Carry Out the Work
    2.4, 12.2.4. 14.2.2.2
Owner's Right to Clean Up
    6.3
Owner's Right to Perform Construction and to Award Separate Contracts
    6.1
Owner's Right to Stop the Work
    2.3
Owner's Right to Suspend the Work
    14.3
Owner's Right to Terminate the Contract
    14.2
Ownership and Use of Drawings, Specifications and Other Instruments of Service
    1.1.1, 1.6, 2.2.5, 3.2.1, 3.11.1, 3.17.1, 4.2.12, 5.3
Partial Occupancy or Use
    9.6.6, 9.9, 11.4.1.5
Patching, Cutting and
    3.14, 6.2.5
Patents
    3.17
Payment, Applications for
    4.2.5, 7.3.8, 9.2, 9.3, 9.4, 9.5.1, 9.6.3, 9.7.1, 9.8.5, 9.10.1, 9.10.3,
    9.10.5, 11.1.3, 14.2.4, 14.4.3
Payment, Certificates for
    4.2.5, 4.2.9, 9.3.3, 9.4, 9.5, 9.6.1, 9.6.6, 9.7.1, 9.10.1, 9.10.3, 13.7,
    14.1.1.3, 14.2.4
Payment, Failure of
    4.3.6, 9.5.1.3, 9.7, 9.10.2, 14.1.1.3, 14.2.1.2, 13.6
Payment, Final
    4.2.1, 4.2.9, 4.3.2, 9.8.2, 9.10, 11.1.2, 11.1.3, 11.4.1, 11.4.5, 12.3.1,
    13.7, 14.2.4, 14.4.3
Payment Bond, Performance Bond and
    7.3.6.4, 9.6.7, 9.10.3, 11.4.9, 11.5
Payments, Progress
    4.3.3, 9.3, 9.6, 9.8.5, 9.10.3, 13.6, 14.2.3

(C) Copyright 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1967,
1970, 1976, 1987, 1997 by The American Institute of Architects. Fifteenth
Edition. Reproduction of the material herein or substantial quotation of its
provisions without written permission of the AIA violates the copyright laws of
the United States and will subject the violate to legal prosecution.
WARNING: Unlicensed photocopying violates U.S. copyright laws and will subject
the violator to legal prosecution. This document was electronically produced
with permission of the AIA and can be reproduced in accordance with your license
without violation until the date of expiration as noted below. User Document:
a-201 gc' s for neurocrine 9.12 -- 9/19/2003. AIA License Number 1106029, which
expires on 3/28/2004.

[AIA LOGO]

(C)1997 AIA(R)
AIA DOCUMENT A201 - 1997
GENERAL CONDITIONS OF THE CONTRACT FOR CONSTRUCTION

The American Institute of Architects
1735 New York Avenue, N.W.
Washington, D.C. 20006-5292

                                                                               6
<PAGE>

THIS DOCUMENT HAS IMPORTANT LEGAL CONSEQUENCES. CONSULTATION WITH AN ATTORNEY IS
ENCOURAGED WITH RESPECT TO ITS COMPLETION OR MODIFICATION. AUTHENTICATION OF
THIS ELECTRONICALLY DRAFTED AIA DOCUMENT MAY BE MADE BY USING AIA DOCUMENT D401.

This document has been approved and endorsed by The Associated General
Contractors of America.

PAYMENTS AND COMPLETION
    9
Payments to Subcontractors
    5.4.2, 9.5.1.3, 9.6.2, 9.6.3, 9.6.4, 9.6.7, 11.4.8, 14.2.1.2
PCB
    10.3.1
Performance Bond and Payment Bond
    7.3.6.4, 9.6.7, 9.10.3, 11.4.9, 11.5
Permits, Fees and Notices
    2.2.2, 3.7, 3.13, 7.3.6.4, 10.2.2
PERSONS AND PROPERTY, PROTECTION OF
    10
Polychlorinated Biphenyl
    10.3.1
Product Data, Definition of
    3.12.2
Product Data and Samples, Shop Drawings
    3.11, 3.12, 4.2.7
Progress and Completion
    4.2.2, 4.3.3, 8.2, 9.8, 9.9.1, 14.1.4
Progress Payments
    4.3.3, 9.3, 9.6, 9.8.5, 9.10.3, 13.6, 14.2.3
Project, Definition of the
    1.1.4
Project Management Protective Liability Insurance
    11.3
Project Manual, Definition of the
    1.1.7
Project Manuals
    2.2.5
Project Representatives
    4.2.10
Property Insurance
    10.2.5, 11.4
PROTECTION OF PERSONS AND PROPERTY
    10
Regulations and Laws
    1.6, 3.2.2, 3.6, 3.7, 3.12.10, 3.13, 4.1.1, 4.4.8, 4.6, 9.6.4, 9.9.1,
    10.2.2, 11.1, 11.4, 13.1, 13.4, 13.5.1, 13.5.2, 13.6, 14
Rejection of Work
    3.5.1, 4.2.6, 12.2.1
Releases and Waivers of Liens
    9.10.2
Representations
    1.5.2, 3.5.1, 3.12.6, 6.2.2, 8.2.1, 9.3.3, 9.4.2, 9.5.1, 9.8.2, 9.10.1
Representatives
    2.1.1, 3.1.1, 3.9, 4.1.1, 4.2.1, 4.2.10, 5.1.1, 5.1.2, 13.2.1
Resolution of Claims and Disputes
    4.4, 4.5, 4.6
Responsibility for Those Performing the Work
    3.3.2, 3.18, 4.2.3, 4.3.8, 5.3.1, 6.1.3, 6.2, 6.3, 9.5.1, 10
Retainage
    9.3.1, 9.6.2, 9.8.5, 9.9.1, 9.10.2, 9.10.3
Review of Contract Documents and Field Conditions by Contractor
    1.5.2, 3.2, 3.7.3, 3.12.7, 6.1.3
Review of Contractor's Submittals by Owner and Architect
    3.10.1, 3.10.2, 3.11, 3.12, 4.2, 5.2, 6.1.3, 9.2, 9.8.2
Review of Shop Drawings, Product Data and Samples by Contractor
    3.12
Rights and Remedies
    1.1.2, 2.3, 2.4, 3.5.1, 3.15.2, 4.2.6, 4.3.4, 4.5, 4.6, 5.3, 5.4, 6.1, 6.3,
    7.3.1, 8.3, 9.5.1, 9.7, 10.2.5, 10.3, 12.2.2, 12.2.4, 13.4, 14
Royalties, Patents and Copyrights
    3.17
Rules and Notices for Arbitration
    4.6.2
Safety of Persons and Property
    10.2, 10.6
Safety Precautions and Programs
    3.3.1, 4.2.2, 4.2.7, 5.3.1, 10.1, 10.2, 10.6
Samples, Definition of
    3.12.3
Samples, Shop Drawings, Product Data and
    3.11, 3.12, 4.2.7
Samples at the Site, Documents and
    3.11
Schedule of Values
    9.2, 9.3.1
Schedules, Construction
    1.4.1.2, 3.10, 3.12.1, 3.12.2, 4.3.7.2, 6.1.3
Separate Contracts and Contractors
    1.1.4, 3.12.5, 3.14.2, 4.2.4, 4.2.7, 4.6.4, 6, 8.3.1, 11.4.7, 12.1.2, 12.2.5
Shop Drawings, Definition of
    3.12.1
Shop Drawings, Product Data and Samples
    3.11, 3.12, 4.2.7
Site, Use of
    3.13, 6.1.1, 6.2.1
Site Inspections
    1.2.2, 3.2.1, 3.3.3, 3.7.1, 4.2, 4.3.4, 9.4.2, 9.10.1, 13.5
Site Visits, Architect's
    4.2.2, 4.2.9, 4.3.4, 9.4.2, 9.5.1, 9.9.2, 9.10.1, 13.5
Special Inspections and Testing
    4.2.6, 12.2.1, 13.5
Specifications, Definition of the

(C) Copyright 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1967,
1970, 1976, 1987, 1997 by The American Institute of Architects. Fifteenth
Edition. Reproduction of the material herein or substantial quotation of its
provisions without written permission of the AIA violates the copyright laws of
the United States and will subject the violate to legal prosecution. WARNING:
Unlicensed photocopying violates U.S. copyright laws and will subject the
violator to legal prosecution. This document was electronically produced with
permission of the AIA and can be reproduced in accordance with your license
without violation until the date of expiration as noted below. User Document:
a-201 gc's for neurocrine 9.12 -- 9/19/2003. AIA License Number 1106029, which
expires on 3/28/2004.

[AIA LOGO]

(C)1997 AIA(R)
AIA DOCUMENT A201 - 1997
GENERAL CONDITIONS OF THE
CONTRACT FOR CONSTRUCTION

The American Institute of Architects
1735 New York Avenue, N.W.
Washington, D.C. 20006-5292

                                                                               7

<PAGE>

THIS DOCUMENT HAS IMPORTANT LEGAL CONSEQUENCES. CONSULTATION WITH AN ATTORNEY IS
ENCOURAGED WITH RESPECT TO ITS COMPLETION OR MODIFICATION. AUTHENTICATION OF
THIS ELECTRONICALLY DRAFTED AIA DOCUMENT MAY BE MADE BY USING AIA DOCUMENT D401.

This document has been approved and endorsed by The Associated General
Contractors of America.

    1.1.6
Specifications, The
    1.1.1, 1.1.6, 1.1.7, 1.2.2, 1.6, 3.11, 3.12.10, 3.17
Statute of Limitations
    4.6.3, 12.2.6, 13.7
Stopping the Work
    2.3, 4.3.6, 9.7, 10.3, 14.1
Stored Materials
    6.2.1, 9.3.2, 10.2.1.2, 10.2.4, 11.4.1.4
Subcontractor, Definition of
    5.1.1
SUBCONTRACTORS
    5
Subcontractors, Work by
    1.2.2, 3.3.2, 3.12.1, 4.2.3, 5.2.3, 5.3, 5.4, 9.3.1.2, 9.6.7
Subcontractual Relations
    5.3, 5.4, 9.3.1.2, 9.6, 9.10 10.2.1, 11.4.7, 11.4.8, 14.1, 14.2.1, 14.3.2
Submittals
    1.6, 3.10, 3.11, 3.12, 4.2.7, 5.2.1, 5.2.3, 7.3.6, 9.2, 9.3, 9.8, 9.9.1,
    9.10.2, 9.10.3, 11.1.3
Subrogation, Waivers of
    6.1.1, 11.4.5, 11.4.7
Substantial Completion
    4.2.9, 8.1.1, 8.1.3, 8.2.3, 9.4.2, 9.8, 9.9.1, 9.10.3, 9.10.4.2, 12.2, 13.7
Substantial Completion, Definition of
    9.8.1
Substitution of Subcontractors
    5.2.3, 5.2.4
Substitution of Architect
    4.1.3
Substitutions of Materials
    3.4.2, 3.5.1, 7.3.7
Sub-subcontractor, Definition of
    5.1.2
Subsurface Conditions
    4.3.4
Successors and Assigns
    13.2
Superintendent
    3.9, 10.2.6
Supervision and Construction Procedures
    1.2.2, 3.3, 3.4, 3.12.10, 4.2.2, 4.2.7, 4.3.3, 6.1.3, 6.2.4, 7.1.3, 7.3.6,
    8.2, 8.3.1, 9.4.2, 10, 12, 14
Surety
    4.4.7, 5.4.1.2, 9.8.5, 9.10.2, 9.10.3, 14.2.2
Surely, Consent of
    9.10.2, 9.10.3
Surveys
    2.2.3
Suspension by the Owner for Convenience
    14.4
Suspension of the Work
    5.4.2, 14.3
Suspension or Termination of the Contract
    4.3.6, 5.4.1.1, 11.4.9, 14
Taxes
    3.6, 3.8.2.1, 7.3.6.4
Termination by the Contractor
    4.3.10, 14.1
Termination by the Owner for Cause
    4.3.10, 5.4.1.1, 14.2
Termination of the Architect
    4.1.3
Termination of the Contractor
    14.2.2
TERMINATION OR SUSPENSION OF THE CONTRACT
    14
Tests and Inspections
    3.1.3, 3.3.3, 4.2.2, 4.2.6, 4.2.9, 9.4.2, 9.8.3, 9.9.2, 9.10.1, 10.3.2,
    11.4.1.1, 12.2.1, 13.5
TIME
    8
Time, Delays and Extensions of
    3.2.3, 4.3.1, 4.3.4, 4.3.7, 4.4.5, 5.2.3, 7.2.1, 7.3.1, 7.4.1, 7.5.1, 8.3,
    9.5.1, 9.7.1, 10.3.2, 10.6.1, 14.3.2
Time Limits
    2.1.2, 2.2, 2.4, 3.2.1, 3.7.3, 3.10, 3.11, 3.12.5, 3.15.1, 4.2, 4.3, 4.4,
    4.5, 4.6, 5.2, 5.3, 5.4, 6.2.4, 7.3, 7.4, 8.2, 9.2, 9.3.1, 9.3.3, 9.4.1,
    9.5, 9.6, 9.7, 9.8, 9.9, 9.10, 11.1.3, 11.4.1.5, 11.4.6, 11.4.10, 12.2,
    13.5, 13.7, 14
Time Limits on Claims
    4.3.2, 4.3.4, 4.3.8, 4.4, 4.5, 4.6
Title to Work
    9.3.2, 9.3.3
UNCOVERING AND CORRECTION OF WORK
    12
Uncovering of Work
    12.1
Unforeseen Conditions
    4.3.4, 8.3.1, 10.3
Unit Prices
    4.3.9, 7.3.3.2
Use of Documents
    1.1.1, 1.6, 2.2.5, 3.12.6, 5.3
Use of Site
    3.13, 6.1.1, 6.2.1
Values, Schedule of
    9.2, 9.3.1
Waiver of Claims by the Architect
    13.4.2
Waiver of Claims by the Contractor
    4.3.10, 9.10.5, 11.4.7, 13.4.2

(C) Copyright 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1967,
1970, 1976, 1987, 1997 by The American Institute of Architects. Fifteenth
Edition. Reproduction of the material herein or substantial quotation of its
provisions without written permission of the AIA violates the copyright laws of
the United States and will subject the violate to legal prosecution. WARNING:
Unlicensed photocopying violates U.S. copyright laws and will subject the
violator to legal prosecution. This document was electronically produced with
permission of the AIA and can be reproduced in accordance with your license
without violation until the date of expiration as noted below. User Document:
a-201 gc's for neurocrine 9.12 -- 9/19/2003. AIA License Number 1106029, which
expires on 3/28/2004.

[AIA LOGO]

(C)1997 AIA(R)
AIA DOCUMENT A201 - 1997
GENERAL CONDITIONS OF THE
CONTRACT FOR CONSTRUCTION

The American Institute of Architects
1735 New York Avenue, N.W.
Washington, D.C. 20006-5292

                                                                               8

<PAGE>

THIS DOCUMENT HAS IMPORTANT LEGAL CONSEQUENCES. CONSULTATION WITH AN ATTORNEY IS
ENCOURAGED WITH RESPECT TO ITS COMPLETION OR MODIFICATION. AUTHENTICATION OF
THIS ELECTRONICALLY DRAFTED AIA DOCUMENT MAY BE MADE BY USING AIA DOCUMENT D401.

This document has been approved and endorsed by The Associated General
Contractors of America.

Waiver of Claims by the Owner
    4.3.10, 9.9.3, 9.10.3, 9.10.4, 11.4.3, 11.4.5, 11.4.7, 12.2.2.1, 1.3.4.2,
    14.2.4
Waiver of Consequential Damages
    4.3.10, 14.2.4
Waiver of Liens
    9.10.2, 9.10.4
Waivers of Subrogation
    6.1.1, 11.4.5, 11.4.7
Warranty
    3.5, 4.2.9, 4.3.5.3, 9.3.3, 9.8.4, 9.9.1, 9.10.4, 12.2.2, 13.7.1.3
Weather Delays
    4.3.7.2
Work, Definition of
    1.1.3
Written Consent
    1.6, 3.4.2, 3.12.8, 3.14.2, 4.1.2, 4.3.4, 4.6.4, 9.3.2, 9.8.5, 9.9.1,
    9.10.2, 9.10.3, 11.4.1, 13.2, 13.4.2
Written Interpretations
    4.2.11, 4.2.12, 4.3.6
Written Notice
    2.3, 2.4, 3.3.1, 3.9, 3.12.9, 3.12.10, 4.3, 4.4.8, 4.6.5, 5.2.1, 8.2.2, 9.7,
    9.10, 10.2.2, 10.3, 11.1.3, 11.4.6, 12.2.2, 12.2.4, 13.3, 14
Written Orders
    1.1.1, 2.3, 3.9, 4.3.6, 7, 8.2.2, 11.4.9, 12.1, 12.2, 13.5.2, 14.3.1

ARTICLE l   GENERAL PROVISIONS

    1.1 BASIC DEFINITIONS

    1.1.1 THE CONTRACT DOCUMENTS

    The Contract Documents consist of the Agreement between Owner and Contractor
    (hereinafter the Agreement), Conditions of the Contract (General,
    Supplementary and other Conditions), Drawings, Specifications, Addenda
    issued prior to execution of the Contract, other documents listed in the
    Agreement and Modifications issued after execution of the Contract. A
    Modification is (i) a written amendment to the Contract signed by both
    parties, (2) a Change Order, (3) a Construction Change Directive or (4) a
    written order for a minor change in the Work issued by the Architect. Unless
    specifically enumerated in the Agreement, the Contract Documents do not
    include other documents such as bidding requirements (advertisement or
    invitation to bid, Instructions to Bidders, sample forms, the Contractor's
    bid or portions of Addenda relating to bidding requirements).

    1.1.2 THE CONTRACT

    The Contract Documents form the Contract for Construction. The Contract
    represents the entire and integrated agreement between the parties hereto
    and supersedes prior negotiations, representations or agreements, either
    written or oral. The Contract may be amended or modified only by a
    Modification. The Contract Documents shall not be construed to create a
    contractual relationship of any kind (i) between the Architect and
    Contractor, (2) between the Owner and a Subcontractor or Sub-subcontractor,
    (3) between the Owner and Architect or (4) between any persons or entities
    other than the Owner and Contractor.

    1.1.3 THE WORK

    The term "Work" means the construction and services required by the Contract
    Documents, whether completed or partially completed, and includes all other
    labor, materials, equipment and services provided or to be provided by the
    Contractor to fulfill the Contractor's obligations. The Work may constitute
    the whole or a part of the Project. The cost of any work which was performed
    or caused to be performed by Contractor prior to the execution of this
    Agreement shall be deemed to be included in this Agreement.

(C) Copyright 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1967,
1970, 1976, 1987, 1997 by The American Institute of Architects. Fifteenth
Edition. Reproduction of the material herein or substantial quotation of its
provisions without written permission of the AIA violates the copyright laws of
the United States and will subject the violate to legal prosecution. WARNING:
Unlicensed photocopying violates U.S. copyright laws and will subject the
violator to legal prosecution. This document was electronically produced with
permission of the AIA and can be reproduced in accordance with your license
without violation until the date of expiration as noted below. User Document:
a-201 gc's for neurocrine 9.12 -- 9/19/2003. AIA License Number 1106029, which
expires on 3/28/2004.

[AIA LOGO]

(C)1997 AIA(R)
AIA DOCUMENT A201 - 1997
GENERAL CONDITIONS OF THE
CONTRACT FOR CONSTRUCTION

The American Institute of Architects
1735 New York Avenue, N.W.
Washington, D.C. 20006-5292

                                                                               9

<PAGE>

THIS DOCUMENT HAS IMPORTANT LEGAL CONSEQUENCES. CONSULTATION WITH AN ATTORNEY IS
ENCOURAGED WITH RESPECT TO ITS COMPLETION OR MODIFICATION. AUTHENTICATION OF
THIS ELECTRONICALLY DRAFTED AIA DOCUMENT MAY BE MADE BY USING AIA DOCUMENT D401.

This document has been approved and endorsed by The Associated General
Contractors of America.

    1.1.4 THE PROJECT

    The Project is the total construction of which the Work performed under the
    Contract Documents may be the whole or a part and which may include
    construction by the Owner or by separate contractors.

    1.1.5 THE DRAWINGS

    The Drawings are the graphic and pictorial portions of the Contract
    Documents showing the design, location and dimensions of the Work, generally
    including plans, elevations, sections, details, schedules and diagrams.

    1.1.6 THE SPECIFICATIONS

    The Specifications are that portion of the Contract Documents consisting of
    the written requirements for materials, equipment, systems, standards and
    workmanship for the Work, and performance of related services.

    1.1.7 THE PROJECT MANUAL

    The Project Manual is a volume assembled for the Work which may include the
    bidding requirements, sample forms, Conditions of the Contract and
    Specifications.

    1.2 CORRELATION AND INTENT OF THE CONTRACT DOCUMENTS

    1.2.1 The Contract Documents will include all items necessary for the proper
    execution and completion of the Work by the Contractor. The Work shall
    consist of all items specifically included in the Contract Documents or
    reasonably inferable therefrom. Reasonably inferable shall not be
    interpreted to impose on Contractor the responsibility for costs of work
    related to errors and/or omissions of others. The Contract Documents are
    complementary, and what is required by any one Contract Document shall be as
    binding as if required by all. All Work shall conform to the Contract
    Documents. No change therefrom shall be made without review and written
    acceptance by the Architect and Owner.

    1.2.2 Organization of the Specifications into divisions, sections and
    articles, and arrangement of Drawings shall not control the Contractor in
    dividing the Work among Subcontractors or in establishing the extent of Work
    to be performed by any trade.

    1.2.3 Unless otherwise stated in the Contract Documents, words which have
    well-known technical or construction industry meanings are used in the
    Contract Documents in accordance with such recognized meanings.

    1.3 CAPITALIZATION

    1.3.1 Terms capitalized in these General Conditions include those which are
    (i) specifically defined, (2) the titles of numbered articles and identified
    references to Paragraphs, Subparagraphs and Clauses in the document or (3)
    the titles of other documents published by the American Institute of
    Architects.

    1.4 INTERPRETATION

    1.4.1 In the interest of brevity the Contract Documents frequently omit
    modifying words such as "all" and "any" and articles such as "the" and "an,"
    but the fad that a modifier or an

(C) Copyright 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1967,
1970, 1976, 1987, 1997 by The American Institute of Architects. Fifteenth
Edition. Reproduction of the material herein or substantial quotation of its
provisions without written permission of the AIA violates the copyright laws of
the United States and will subject the violate to legal prosecution. WARNING:
Unlicensed photocopying violates U.S. copyright laws and will subject the
violator to legal prosecution. This document was electronically produced with
permission of the AIA and can be reproduced in accordance with your license
without violation until the date of expiration as noted below. User Document:
a-201 gc' s for neurocrine 9.12 -- 9/19/2003. AIA License Number 1106029, which
expires on 3/28/2004.

[AIA LOGO]

(C)1997 AIA(R)
AIA DOCUMENT A201 - 1997
GENERAL CONDITIONS OF THE
CONTRACT FOR CONSTRUCTION

The American Institute of Architects
1735 New York Avenue, N.W.
Washington, D.C. 20006-5292

                                                                              10

<PAGE>

THIS DOCUMENT HAS IMPORTANT LEGAL CONSEQUENCES. CONSULTATION WITH AN ATTORNEY IS
ENCOURAGED WITH RESPECT TO ITS COMPLETION OR MODIFICATION. AUTHENTICATION OF
THIS ELECTRONICALLY DRAFTED AIA DOCUMENT MAY BE MADE BY USING AIA DOCUMENT D401.

This document has been approved and endorsed by The Associated General
Contractors of America.

    article is absent from one statement and appears in another is not intended
    to affect the interpretation of either statement.

    1.5 EXECUTION OF CONTRACT DOCUMENTS

    1.5.1 The Contract Documents shall be signed by the Owner and Contractor.

    1.5.2 Execution of the Contract by the Contractor is a representation that
    the Contractor has visited the site, become generally familiar with local
    conditions under which the Work is to be performed and correlated personal
    observations with requirements of the Contract Documents. Execution of the
    Agreement by the Contractor is a representation that the preliminary design
    information prepared by the Architect and the preliminary estimate prepared
    by Contractor attached to the Agreement as Schedule are sufficient to have
    enabled the Contractor: (1) to estimate the cost of the Shell/Site
    Improvements and the cost of the Tenant Improvements described therein
    (which collectively comprise the Work): and (2) to enter into the Agreement
    with the understanding that the Schematic Design and the Schedule Estimate
    are sufficient to enable the Contractor to determine its ability to
    construct the Shell/Site Improvements for a Guaranteed Maximum price which
    does not exceed the range of costs specified in the Agreement on or before
    the Substantial Completion Deadline established in the Agreement, except to
    the extent that changes in the scope of the Shell/Site Improvements set
    forth on the Schematic Design and the Schematic Estimate result, in the
    aggregate, in increased costs. Promptly after the Contractor's receipt of
    supplemental design documents during the course of the preparation of the
    Final Drawings and Specifications, with respect to the Shell/Land
    Improvements and the Tenant Improvements, the Contractor shall provide
    prompt notice to the Owner and the Architect regarding the impact of such
    supplemental design documents on construction cost and construction time,
    and whether, in Contractor's opinion, such supplemental design documents
    modify the scope of the work. Owner may direct the Architect to make
    modifications to the design documents in order to meet or maintain the
    Project budget.

    1.6 OWNERSHIP AND USE OF DRAWINGS, SPECIFICATIONS AND OTHER INSTRUMENTS OF
        SERVICE

(C) Copyright 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1967,
1970, 1976, 1987, 1997 by The American Institute of Architects. Fifteenth
Edition. Reproduction of the material herein or substantial quotation of its
provisions without written permission of the AIA violates the copyright laws of
the United States and will subject the violate to legal prosecution. WARNING:
Unlicensed photocopying violates U.S. copyright laws and will subject the
violator to legal prosecution. This document was electronically produced with
permission of the AIA and can be reproduced in accordance with your license
without violation until the date of expiration as noted below. User Document:
a-201 gc' s for neurocrine 9.12 -- 9/19/2003. AIA License Number 1106029, which
expires on 3/28/2004.

[AIA LOGO]

(C)1997 AIA(R)
AIA DOCUMENT A201 - 1997
GENERAL CONDITIONS OF THE
CONTRACT FOR CONSTRUCTION

The American Institute of Architects
1735 New York Avenue, N.W.
Washington, D.C. 20006-5292

                                                                              11

<PAGE>

THIS DOCUMENT HAS IMPORTANT LEGAL CONSEQUENCES. CONSULTATION WITH AN ATTORNEY IS
ENCOURAGED WITH RESPECT TO ITS COMPLETION OR MODIFICATION. AUTHENTICATION OF
THIS ELECTRONICALLY DRAFTED AIA DOCUMENT MAY BE MADE BY USING AIA DOCUMENT D401.

This document has been approved and endorsed by The Associated General
Contractors of America.

    The Drawings. Specifications, and other similar or related documents and
    copies thereof furnished to the Contractor and its Subcontractors will be
    furnished solely for the purpose of performing the Work and are, and shall
    remain, the property of the Owner. All copies of such documents, except the
    Contractor's record set, shall be returned or suitably accounted for to the
    Owner, upon Completion of the Work. The Drawings. Specifications, and other
    similar or related documents furnished to the Contractor are for its use
    solely with respect to this Project and the Owner will retain all common
    law, statutory, and other reserved rights, in addition to the copyright
    (including, without limitation, the right to create derivative works
    therefrom). Submittal or distribution to meet official regulatory
    requirements or for other purposes in connection with this Project is not to
    be construed as publication in derogation of the Owner's rights.

ARTICLE 2 OWNER

    2.1 GENERAL

    2.1.1 The Owner is the person or entity identified as such in the Agreement
    and is referred to throughout the Contract Documents as if singular in
    number. The Owner shall designate in writing a representative who shall have
    express authority to bind the Owner with respect to all matters requiring
    the Owner's approval or authorization. Except as otherwise provided in
    Subparagraph 4.2.1, the Architect does not have such authority. The term
    "Owner" means the Owner or the Owner's authorized representative.

    2.1.2 The Owner shall furnish to the Contractor within fifteen days after
    receipt of a written request, information necessary and relevant for the
    Contractor to evaluate, give notice of or enforce mechanic's lien rights.
    Such information shall include a correct statement of the record legal title
    to the property on which the Project is located, usually referred to as the
    site, and the Owner's interest therein.

    2.2 INFORMATION AND SERVICES REQUIRED OF THE OWNER

    2.2.1

    2.2.2 The Owner shall secure and pay for permits and fees for necessary
    approvals, easements, assessments and charges required for construction, use
    or occupancy of permanent structures or for permanent changes in existing
    facilities.

    2.2.3 The Owner shall furnish surveys describing physical characteristics,
    legal limitations and utility locations for the site of the Project, and a
    legal description of the site. The Contractor shall be entitled to rely on
    the accuracy of information furnished by the Owner but shall exercise proper
    precautions relating to the safe performance of the Work. The furnishing of
    these surveys and the legal description of the Site shall not relieve the

(C) Copyright 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1967,
1970, 1976, 1987, 1997 by The American Institute of Architects. Fifteenth
Edition. Reproduction of the material herein or substantial quotation of its
provisions without written permission of the AIA violates the copyright laws of
the United States and will subject the violate to legal prosecution. WARNING:
Unlicensed photocopying violates U.S. copyright laws and will subject the
violator to legal prosecution. This document was electronically produced with
permission of the AIA and can be reproduced in accordance with your license
without violation until the date of expiration as noted below. User Document:
a-201 gc' s for neurocrine 9.12 -- 9/19/2003. AIA License Number 1106029, which
expires on 3/28/2004.

[AIA LOGO]

(C)1997 AIA(R)
AIA DOCUMENT A201 - 1997
GENERAL CONDITIONS OF THE
CONTRACT FOR CONSTRUCTION

The American Institute of Architects
1735 New York Avenue, N.W.
Washington, D.C. 20006-5292

                                                                              12
<PAGE>
THIS DOCUMENT HAS IMPORTANT LEGAL CONSEQUENCES. CONSULTATION WITH AN ATTORNEY IS
ENCOURAGED WITH RESPECT TO ITS COMPLETION OR MODIFICATION. AUTHENTICATION OF
THIS ELECTRONICALLY DRAFTED AIA DOCUMENT MAY BE MADE BY USING AIA DOCUMENT D401.

This document has been approved and endorsed by The Associated General
Contractors of America.

    Contractor from its duties under the Contract Documents. The Owner's
    investigations of subsurface characteristics or conditions of the areas
    where the Work is to be performed is provided for use by the Architect and
    the Contractor. However, the Owner does not warrant the sufficiency or
    accuracy of the investigations thus made, the records thereof, or of any
    interpretations set forth therein or made by the Owner or Architect in its
    use thereof, and the Owner makes no warranty or guaranty, either express or
    implied, that the conditions indicated by such investigations are accurate
    or representative of those existing on the Site or adjacent area, or that
    unforeseen developments may not occur, or that materials other than or in
    proportions different from those indicated may not be encountered.
    Contractor shall use its best professional efforts to perform the Work in
    such a manner so as to avoid damaging any and all utility lines, telephone
    company lines and cables, sewer lines, water pipes, gas lines, electrical
    lines, including, without limitation, all buried pipelines and buried
    telephone cables. In the event unanticipated subsurface site conditions are
    discovered after the date of the Agreement which require changes in the
    Work, the parties shall follow the procedure for Change Orders described in
    Article 7 of these General Conditions.

    2.2.4 Information or services required of the Owner by the Contract
    Documents shall be furnished by the Owner with reasonable promptness. Any
    other information or services relevant to the Contractor's performance of
    the Work under the Owner's control shall be furnished by the Owner after
    receipt from the Contractor of a written request for such information or
    services.

    2.2.5 Unless otherwise provided in the Contract Documents, the Contractor
    will be furnished, free of charge, such copies of Drawings and Project
    Manuals as are reasonably necessary for execution of the Work.

    2.3 OWNER'S RIGHT TO STOP THE WORK

    2.3.1 If the Contractor fails to correct Work which is not in accordance
    with the requirements of the Contract Documents as required by Paragraph
    12.2 or persistently fails to carry out Work in accordance with the Contract
    Documents, or fails or refuses to provide a sufficient amount of properly
    supervised and coordinated labor, materials, or equipment so as to be able
    to complete the Work by the Substantial Completion Deadline or permits
    performance of the Work to stop for a period of fifteen (15) days for any
    reason other than force majeure events as set forth in Paragraph 4.2 of the
    Agreement or Owner-caused delay, or fails to remove and discharge (within
    ten (10) days any lien filed upon the Owner's property by anyone claiming
    by, through, or under the Contractor, or disregards the instructions of the
    Architect or Owner when based on the requirements of the Contract Documents,
    the Owner may issue a written order to the Contractor to stop the Work, or
    any portion thereof, until the cause for such order has been eliminated;
    however, the right of the Owner to stop the Work shall not give rise to a
    duty on the part of the Owner to exercise this right for the benefit of the
    Contractor or any other person or entity, except to the extent required by
    Subparagraph 6.1.3.

    2.4 OWNER'S RIGHT TO CARRY OUT THE WORK

    2.4.1 If the Contractor defaults or neglects to carry out the Work in
    accordance with the Contract Documents and fails within a seven-day period
    after receipt of written notice from the Owner to commence and continue
    correction of such default or neglect with diligence and promptness, or
    fails within such seven (7) day period to eliminate (or diligently commence
    to eliminate) the cause of any stop work order issued under Subparagraph
    2.3.1 hereof, the Owner may after such seven-day period give the Contractor

(C) Copyright 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1967,
1970, 1976, 1987, 1997 by The American Institute of Architects. Fifteenth
Edition. Reproduction of the material herein or substantial quotation of its
provisions without written permission of the AIA violates the copyright laws of
the United States and will subject the violate to legal prosecution. WARNING:
Unlicensed photocopying violates U.S. copyright laws and will subject the
violator to legal prosecution. This document was electronically produced with
permission of the AIA and can be reproduced in accordance with your license
without violation until the date of expiration as noted below. User Document:
a-201 gc's for neurocrine 9.12 -- 9/19/2003. AIA License Number 1106029, which
expires on 3/28/2004.

[AIA LOGO]

(C)1997 AIA(R)
AIA DOCUMENT A201 - 1997
GENERAL CONDITIONS OF THE CONTRACT FOR CONSTRUCTION

The American Institute of Architects
1735 New York Avenue, N.W.
Washington, D.C. 20006-5292

                                                                              13

<PAGE>

THIS DOCUMENT HAS IMPORTANT LEGAL CONSEQUENCES. CONSULTATION WITH AN ATTORNEY
IS ENCOURAGED WITH RESPECT TO ITS COMPLETION OR MODIFICATION. AUTHENTICATION OF
THIS ELECTRONICALLY DRAFTED AIA DOCUMENT MAY BE MADE BY USING AIA DOCUMENT D401.

This document has been approved and endorsed by The Associated General
Contractors of America.

    a second written notice to correct such deficiencies within a three-day
    period. If the Contractor within such three-day period after receipt of such
    second notice fails to commence and continue to correct any deficiencies,
    the Owner may, without prejudice to other remedies the Owner may have,
    correct such deficiencies. In such case an appropriate Change Order shall be
    issued deducting from payments then or thereafter due the Contractor the
    reasonable cost of correcting such deficiencies, including Owner's expenses
    and compensation for the Architect's additional services made necessary by
    such default, neglect or failure. Such action by the Owner and amounts
    charged to the Contractor are both subject to prior review by the Architect.
    If payments then or thereafter due the Contractor are not sufficient to
    cover such amounts, the Contractor shall pay the difference to the Owner.

ARTICLE 3 CONTRACTOR

    3.1 GENERAL

    3.1.1 The Contractor is the person or entity identified as such in the
    Agreement and is referred to throughout the Contract Documents as if
    singular in number. The term "Contractor" means the Contractor or the
    Contractor's authorized representative.

    3.1.2 The Contractor shall perform the Work in accordance with the Contract
    Documents.

    3.1.3 The Contractor shall not be relieved of obligations to perform the
    Work in accordance with the Contract Documents either by activities or
    duties of the Architect or by tests, inspections or approvals required or
    performed by persons other than the Contractor.

    3.2 REVIEW OF CONTRACT DOCUMENTS AND FIELD CONDITIONS BY CONTRACTOR

    3.2.1 Since the Contract Documents are complementary, before starting each
    portion of the Work, the Contractor shall, using appropriate care, carefully
    study and compare the various Drawings and other Contract Documents relative
    to that portion of the Work, as well as the information furnished by the
    Owner pursuant to Subparagraph 2.2.3, shall take field measurements of any
    existing conditions related to that portion of the Work and shall observe
    any conditions at the site affecting it. These obligations are for the
    purpose of facilitating construction by the Contractor and are not for the
    purpose of discovering errors, omissions, or inconsistencies in the Contract
    Documents; however, any errors, inconsistencies or omissions discovered by
    the Contractor shall be reported promptly to the Architect and Owner as a
    request for information in such form as the Architect may require. Architect
    and Engineers are preparing all plans, specifications and drawings for the
    Work. As the various portions of the final plans, specifications and
    drawings are completed for the Work, and properly issued to Contractor, the
    same shall be considered a Contract Document. Contractor shall, unless
    otherwise specified, comply with manufacturer's latest printed instructions,
    if any, for materials, supply, storage and installation methods and shall
    notify Owner in writing of any conflict between these specifications and the
    manufacturer's instructions. Owner will designate which document is to be
    followed.

    3.2.2 Any design errors or omissions noted by the Contractor during this
    review shall be reported promptly to the Architect or Owner, but it is
    recognized that the Contractor's review is made in the Contractor's capacity
    as a contractor and not as a licensed design professional unless otherwise
    specifically provided in the Contract Documents. The Contractor is not
    required to ascertain that the Contract Documents are in accordance with
    applicable laws, statutes, ordinances, building codes, and rules and
    regulations, but any nonconformity discovered by or made known to the
    Contractor shall be reported promptly to the Architect and Owner.

(C) Copyright 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1967,
1970, 1976, 1987, 1997 by The American Institute of Architects. Fifteenth
Edition. Reproduction of the material herein or substantial quotation of its
provisions without written permission of the AIA violates the copyright laws of
the United States and will subject the violate to legal prosecution. WARNING:
Unlicensed photocopying violates U.S. copyright laws and will subject the
violator to legal prosecution. This document was electronically produced with
permission of the AIA and can be reproduced in accordance with your license
without violation until the date of expiration as noted below. User Document:
a-201 gc' s for neurocrine 9.12 -- 9/19/2003. AIA License Number 1106029, which
expires on 3/28/2004.

[AIA LOGO]

(C)1997 AIA(R)
AIA DOCUMENT A201 - 1997
GENERAL CONDITIONS OF THE CONTRACT FOR CONSTRUCTION

The American Institute of Architects
1735 New York Avenue, N.W.
Washington, D.C. 20006-5292

                                                                              14
<PAGE>

THIS DOCUMENT HAS IMPORTANT LEGAL CONSEQUENCES. CONSULTATION WITH AN ATTORNEY IS
ENCOURAGED WITH RESPECT TO ITS COMPLETION OR MODIFICATION. AUTHENTICATION OF
THIS ELECTRONICALLY DRAFTED AIA DOCUMENT MAY BE MADE BY USING AIA DOCUMENT D401.

This document has been approved and endorsed by The Associated General
Contractors of America.

    3.2.3 If the Contractor believes that additional cost or time is involved
    because of clarifications or instructions issued by the Architect or Owner
    in response to the Contractor's notices or requests for information pursuant
    to Subparagraphs 3.2.1 and 3.2.2, the Contractor shall make Claims as
    provided in Subparagraphs 4.3.6 and 4.3.7. If the Contractor fails to
    perform the obligations of Subparagraphs 3.2.1 and 3.2.2, the Contractor
    shall pay such costs and damages to the Owner as would have been avoided if
    the Contractor had performed such obligations. The Contractor shall not be
    liable to the Owner or Architect for damages resulting from errors,
    inconsistencies or omissions in the Contract Documents or for differences
    between field measurements or conditions and the Contract Documents unless
    the Contractor recognized such error, inconsistency, omission or difference
    and knowingly failed to report it to the Architect or Owner.

    3.3 SUPERVISION AND CONSTRUCTION PROCEDURES

    3.3.1 The Contractor shall supervise and direct the Work, using the
    Contractor's best skill and attention. The Contractor shall be solely
    responsible for and have control over construction means, methods,
    techniques, sequences and procedures and for coordinating all portions of
    the Work under the Contract, unless the Contract Documents give other
    specific instructions concerning these matters. If the Contract Documents
    give specific instructions concerning construction means, methods,
    techniques, sequences or procedures, the Contractor shall evaluate the
    jobsite safety thereof and, except as stated below, shall be fully and
    solely responsible for the jobsite safety of such means, methods,
    techniques, sequences or procedures. If the Contractor determines that such
    means, methods, techniques, sequences or procedures may not be safe, the
    Contractor shall give timely written notice to the Architect or Owner and
    shall not proceed with that portion of the Work without further written
    instructions from the Architect or Owner. If the Contractor is then
    instructed to proceed with the required means, methods, techniques,
    sequences or procedures without acceptance of changes proposed by the
    Contractor, the Owner shall be solely responsible for any resulting loss or
    damage. Contractor shall perform the Work in accordance with the Contract
    Documents, and shall cause the Work to be performed by duly qualified and
    licensed personnel of Contractor. Contractor hereby accepts the relationship
    of trust and confidence established by the Agreement and covenants with the
    Owner to cooperate with the architects, engineers, and consultants retained
    by Owner and utilize the Contractor's best skill, efforts and judgment in
    furthering the interests of the Owner; to furnish efficient business
    administration and supervision; to make best efforts to furnish at all times
    and adequate supply of workers and materials; and to perform the Work in the
    best way and most expeditious and economical manner consistent with the
    interests of the Owner. Except as expressly authorized herein, the
    Contractor has no right or authority of any kind to act as the
    representative of or agent of Owner. It is understood and agreed that the
    relationship of Contractor to Owner shall be that of an independent
    contractor. Nothing contained herein or inferable herefrom shall be deemed
    or construed to (1) make the Contractor the agent, servant, or employee of
    the Owner, or (2) create any partnership, joint venture, or other
    association between the Owner and Contractor. Any direction or instruction
    by the Owner in respect of the Work shall relate to the results the Owner
    desires to obtain from the Work, and shall in no way affect the
    Contractors's independent contractor status as described herein.

    3.3.2 The Contractor shall be responsible to the Owner for acts and
    omissions of the Contractor's employees, Subcontractors and their agents and
    employees, and other persons or entities performing portions of the Work
    for or on behalf of the Contractor or any of its Subcontractors. The
    Contractor shall be responsible for labor peace on the Site and shall at all
    times use its best efforts and Judgment as an experienced contractor to,
    adopt and implement policies and practices designed to avoid work stoppages,

(C) Copyright 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1967,
1970, 1976, 1987, 1997 by The American Institute of Architects, Fifteenth
Edition. Reproduction of the material herein or substantial quotation of its
provisions without written permission of the AIA violates the copyright laws of
the United States and will subject the violate to legal prosecution. WARNING:
Unlicensed photocopying violates U.S. copyright laws and will subject the
violator to legal prosecution. This document was electronically produced with
permission of the AIA and can be reproduced in accordance with your license
without violation until the date of expiration as noted below. User Document:
a-201 gc' s for neurocrine 9.12 -- 9/19/2003. AIA License Number 1106029, which
expires on 3/28/2004.

[AIA LOGO]

(C)1997 AIA(R)
AIA DOCUMENT A201 - 1997
GENERAL CONDITIONS OF THE CONTRACT FOR CONSTRUCTION

The American Institute of Architects
1735 New York Avenue, N.W.
Washington, D.C. 20006-5292

                                                                              15
<PAGE>

THIS DOCUMENT HAS IMPORTANT LEGAL CONSEQUENCES. CONSULTATION WITH AN ATTORNEY IS
ENCOURAGED WITH RESPECT TO ITS COMPLETION OR MODIFICATION, AUTHENTICATION OF
THIS ELECTRONICALLY DRAFTED AIA DOCUMENT MAY BE MADE BY USING AIA DOCUMENT D401.

This document has been approved and endorsed by The Associated General
Contractors of America.

    slowdowns, disputes, or strikes where reasonably possible and practical
    under the circumstances.

    3.3.3 The Contractor shall be responsible for inspection of portions of Work
    already performed to determine that such portions are in proper condition to
    receive subsequent Work.

    3.4 LABOR AND MATERIALS

    3.4.1 Unless otherwise provided in the Contract Documents, the Contractor
    shall provide and pay for labor, materials, equipment, tools, resting
    devices, construction equipment and machinery, water, heat, utilities,
    transportation, warehousing, and other facilities and services necessary for
    proper execution and completion of the Work, whether temporary or permanent
    and whether or not incorporated or to be incorporated in the Work.

    3.4.2 The Contractor may make substitutions only with the consent of the
    Architect or Owner, after evaluation by the Architect or Owner and in
    accordance with a Change Order.

    3.4.3 The Contractor shall enforce strict discipline and good order among
    the Contractor's employees and other persons carrying out the Contract. The
    Contractor shall not permit employment of unfit persons or persons not
    skilled in tasks assigned to them. The consumption, use or possession of
    alcoholic beverages or illegal drug substances at the Site is strictly
    forbidden. Contractor agrees that it shall immediately remove from the Site
    any worker (employee of Contractor or any of the Subcontractors) found to be
    under-the-influence or In possession of alcoholic beverages or illegal drugs
    while on the Site and shall deny further access to the Site to such worker.

    3.4.4 This Agreement and all subcontracts must be performed in full
    compliance with all legally required equal employment
    opportunity/affirmative action requirements and all amendments thereto, and
    any applicable federal, state and local regulations, rules and orders issued
    thereunder, including, without limitation: Title VII of the Civil Rights Act
    of 1964: Executive Order No. 11141: Executive Order No. 11246 as amended by
    Executive Order 11375: Sections (1) and (3) of Executive Order 11625.
    relating to the promotion of Minority Business Enterprises, and the
    implementing rules and regulations of the General Services Administration:
    the Americans with Disabilities Act: the Vietnam Era Veterans' Readjustment
    Assistance Act of 1974: the Fair Labor Standards Act: and the Rehabilitation
    Act of 1973. all of which (including the contract clauses required and
    regulations promulgated thereunder) are incorporated herein by reference.

    3.5 WARRANTY

    3.5.1 The Contractor warrants to the Owner that materials and equipment
    furnished under the Contract will be of good quality and new unless
    otherwise required or permitted by the Contract Documents, that the Work
    will be free from defects not inherent in the quality required or permitted,
    that the Work will conform to the requirements of the Contract Documents and
    that performance of the Work will be consistent with the standards
    customarily achieved by an experienced and professional organization
    performing similar work. Work not conforming to these requirements,
    including substitutions not properly approved and authorized, will be
    considered defective. The Contractor's warranty excludes remedy for damage
    or defect caused by abuse, modifications not executed by the Contractor,
    improper or insufficient maintenance, improper operation, or normal wear and
    tear and normal usage. If required by the Owner or Architect, the Contractor
    shall furnish satisfactory evidence as to the kind and quality of materials
    and equipment

(C) Copyright 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1967,
1970, 1976, 1987, 1997 by The American Institute of Architects. Fifteenth
Edition. Reproduction of the material herein or substantial quotation of its
provisions without written permission of the AIA violates the copyright laws of
the United States and will subject the violate to legal prosecution. WARNING:
Unlicensed photocopying violates U.S. copyright laws and will subject the
violator to legal prosecution. This document was electronically produced with
permission of the AIA and can be reproduced in accordance with your license
without violation until the date of expiration as noted below. User Document:
a-201 gc' s for neurocrine 9.12 -- 9/19/2003. AIA License Number 1106029, which
expires on 3/28/2004.

[AIA LOGO]

(C)1997 AIA(R)
AIA DOCUMENT A201 - 1997
GENERAL CONDITIONS OF THE CONTRACT FOR CONSTRUCTION

The American Institute of Architects
1735 New York Avenue, N.W.
Washington, D.C. 20006-5292

                                                                              16
<PAGE>

THIS DOCUMENT HAS IMPORTANT LEGAL CONSEQUENCES. CONSULTATION WITH AN, ATTORNEY
IS ENCOURAGED WITH RESPECT TO ITS COMPLETION OR MODIFICATION, AUTHENTICATION OF
THIS ELECTRONICALLY DRAFTED AIA DOCUMENT MAY BE MADE BY USING AIA DOCUMENT D401.

This document has been approved and endorsed by The Associated General
Contractors of America.

    3.5.2 Notwithstanding anything to the contrary in the Agreement Between
    Owner and Contractor and these General Conditions, the Contractor shall
    warrant for a period of not less than one (1) year from the date of
    recording of the notice of completion of the Work that the building shall be
    watertight and leak-proof at every point and in every area, except where
    leaks can be attributed to damage to the building by external forces beyond
    Contractor's control. The Contractor shall, immediately upon notification by
    the Owner of water penetration, determine the source of water penetration,
    and at its own expense, do any work necessary to make the building
    watertight. The Contractor shall also, at its own expense, repair or replace
    any other damaged material, finishes, and furnishings, damaged as a result
    of the water penetration, to return the building to its original condition.

    3.5.3 The Contractor acknowledges that the Owner may freely assign all
    warranties and guarantees from the Contractor and any Subcontractors and
    materialmen, including the warranty set forth in subparagraph 3.5.1. The
    Owner and Owner's assignees shall have the benefit of, on a non-exclusive
    basis, any and all warranties and guarantees with respect to the design,
    materials, construction and workmanship of the Work, together with all other
    rights and claims the Owner may have against the Contractor, Subcontractors
    and materialmen or from applicable insurance policies.

    3.6 TAXES

    3.6.1 As part of the contract sum Contractor shall pay sales, consumer, use
    and similar taxes for the Work provided by the Contractor which are legally
    enacted when bids are received or negotiations concluded, whether or not yet
    effective or merely scheduled to go into effect.

    3.7 PERMITS, FEES AND NOTICES

    3.7.1 Unless otherwise provided in the Contract Documents, the Owner shall
    secure and pay for the building permit and other permits and governmental
    fees, licenses and inspections necessary for proper execution and completion
    of the Work which are customarily secured after execution of the Contract
    and which are legally required when bids are received or negotiations
    concluded.

    3.7.2 The Contractor shall comply with and give notices required by laws,
    ordinances, rules, regulations and lawful orders of public authorities
    applicable to performance of the Work.

    3.7.3 It is not the Contractor's responsibility to ascertain that the
    Contract Documents are in accordance with applicable laws, statutes,
    ordinances, building codes, and rules and regulations. However, if the
    Contractor observes that portions of the Contract Documents are at variance
    therewith, the Contractor shall promptly notify the Architect and Owner in
    writing, and necessary changes shall be accomplished by appropriate
    Modification.

    3.7.4 If the Contractor performs Work knowing it to be contrary to laws,
    statutes, ordinances, building codes, and rules and regulations without such
    notice to the Architect and Owner, the Contractor shall assume appropriate
    responsibility for such Work and shall bear the costs attributable to
    correction.

    3.8 ALLOWANCES

    3.8.1 The Contractor shall include in the Contract Sum all allowances stated
    in the Contract Documents. Items covered by allowances shall be supplied for
    such amounts and by such persons or entities as the Owner may direct, but
    the Contractor shall not be required to

(C) Copyright 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1967,
1970, 1976, 1987, 1997 by The American Institute of Architects. Fifteenth
Edition, Reproduction of the material herein or substantial quotation of its
provisions without written permission of the AIA violates the copyright laws of
the United States and will subject the violate to legal prosecution. WARNING:
Unlicensed photocopying violates U.S. copyright laws and will subject the
violator to legal prosecution. This document was electronically produced with
permission of the AIA and can be reproduced in accordance with your license
without violation until the date of expiration as noted below. User Document:
a-201 gc' s for neurocrine 9.12 -- 9/19/2003. AIA License Number 1106029, which
expires on 3/28/2004.

[AIA LOGO]

(C)1997 AIA(R)
AIA DOCUMENT A201 - 1997
GENERAL CONDITIONS OF THE CONTRACT FOR CONSTRUCTION

The American Institute of Architects
1735 New York Avenue, N.W.
Washington, D.C. 20006-5292

                                                                              17
<PAGE>

THIS DOCUMENT HAS IMPORTANT LEGAL CONSEQUENCES. CONSULTATION WITH AN ATTORNEY IS
ENCOURAGED WITH RESPECT TO ITS COMPLETION OR MODIFICATION. AUTHENTICATION OF
THIS ELECTRONICALLY DRAFTED AIA DOCUMENT MAY BE MADE BY USING AIA DOCUMENT D401.

This document has been approved and endorsed by The Associated General
Contractors of America.

    employ persons or entities to whom the Contractor has reasonable objection.
    Any employee of Contractor or its Subcontractors deemed by Owner, in its
    sole and reasonable judgment, to be objectionable, shall be removed from the
    Site immediately upon Owner's request and must be promptly replaced by
    Contractor at no extra expense to Owner.

    3.8.2 Unless otherwise provided in the Contract Documents:

        .1  allowances shall cover the cost to the Contractor of materials and
            equipment delivered at the site and all required taxes, less
            applicable trade discounts;

        .2  Contractor's costs for unloading and handling at the site, labor,
            installation costs, overhead, profit and other expenses contemplated
            for stated allowance amounts shall be included in the allowances;

        .3  whenever costs are more than or less than allowances, the Contract
            Sum shall be adjusted accordingly by Change Order. The amount of the
            Change Order shall reflect (1) the difference between actual costs
            and the allowances under Clause 3.8.2.1 and (2) changes in
            Contractor's costs under Clause 3.8.2.2.

    3.8.3 Materials and equipment under an allowance shall be selected by the
    Owner in sufficient time to avoid delay in the Work.

    3.9 SUPERINTENDENT

    3.9.1 The Contractor shall employ a competent superintendent and necessary
    assistants who shall be in attendance at the Project site during performance
    of the Work. The superintendent shall represent the Contractor, and
    communications given to the superintendent shall be as binding as if given
    to the Contractor. Important communications shall be confirmed in writing.
    Other communications shall be similarly confirmed on written request in each
    case.

    3.10 CONTRACTOR'S CONSTRUCTION SCHEDULES

    3.10.1 The Contractor, promptly after being awarded the Contract, shall
    prepare and submit for the Owner's and Architect's information a
    Contractor's construction schedule for the Work. The schedule shall not
    exceed time limits current under the Contract Documents, shall be revised at
    appropriate intervals as required by the conditions of the Work and Project,
    shall be related to the entire Project to the extent required by the
    Contract Documents, and shall provide for expeditious and practicable
    execution of the Work.

    3.10.2 The Contractor shall prepare and keep current, for the Architect's
    review a schedule of submittals which is coordinated with the Contractor's
    construction schedule and allows the Architect reasonable time to review
    submittals.

    3.10.3 The Contractor shall perform the Work in general accordance with the
    most recent schedules submitted to the Owner and Architect. Owner shall have
    the right to order Contractor to work its personnel and/or the personnel of
    Subcontractors overtime in the event Owner reasonably determines that
    Contractor has not completed so much of the Work as should be completed by
    such time according to the Owner-approved construction schedule. Such
    overtime work shall continue until such time as the Work has progressed so
    that it complies with the stage of completion required by the Owner-approved
    Construction Schedule. The additional cost of such overtime work ' shall be
    included in the GMP.

    3.11 DOCUMENTS AND SAMPLES AT THE SITE

(C) Copyright 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1967,
1970, 1976, 1987, 1997 by The American Institute of Architects. Fifteenth
Edition. Reproduction of the material herein or substantial quotation of its
provisions without written permission of the AIA violates the copyright laws of
the United States and will subject the violate to legal prosecution. WARNING:
Unlicensed photocopying violates U.S. copyright laws and will subject the
violator to legal prosecution. This document was electronically produced with
permission of the AIA and can be reproduced in accordance with your license
without violation until the date of expiration as noted below. User Document:
a-201 gc' s for neurocrine 9.12 -- 9/19/2003. AIA License Number 1106029, which
expires on 3/28/2004.

[AIA LOGO]

(C)1997 AIA(R)
AIA DOCUMENT A201 - 1997
GENERAL CONDITIONS OF THE CONTRACT FOR CONSTRUCTION

The American Institute of Architects
1735 New York Avenue, N.W.
Washington, D.C. 20006-5292

                                                                              18
<PAGE>

THIS DOCUMENT HAS IMPORTANT LEGAL CONSEQUENCES. CONSULTATION WITH AN ATTORNEY IS
ENCOURAGED WITH RESPECT TO ITS COMPLETION OR MODIFICATION. AUTHENTICATION OF
THIS ELECTRONICALLY DRAFTED AIA DOCUMENT MAY BE MADE BY USING AIA DOCUMENT D401.

This document has been approved and endorsed by The Associated General
Contractors of America.

    3.11.1 The Contractor shall maintain at the site for the Owner one record
    copy of the Drawings, Specifications, Addenda, Change Orders and other
    Modifications, in good order and marked currently to record field changes
    and selections made during construction, and one record copy of approved
    Shop Drawings, Product Data, Samples and similar required submittals. These
    shall be available to the Architect and shall be delivered to the Architect
    for submittal to the Owner upon completion of the Work.

    3.12 SHOP DRAWINGS, PRODUCT DATA AND SAMPLES

    3.12.1 Shop Drawings are drawings, diagrams, schedules and other data
    specially prepared for the Work by the Contractor or a Subcontractor,
    Sub-subcontractor, manufacturer, supplier or distributor to illustrate some
    portion of the Work.

    3.12.2 Product Data are illustrations, standard schedules, performance
    charts, instructions, brochures, diagrams and other information furnished by
    the Contractor to illustrate materials or equipment for some portion of the
    Work.

    3.12.3 Samples are physical examples which illustrate materials, equipment
    or workmanship and establish standards by which the Work will be judged.

    3.12.4 Shop Drawings, Product Data, Samples and similar submittals are not
    Contract Documents. The purpose of their submittal is to demonstrate for
    those portions of the Work for which submittals are required by the Contract
    Documents the way by which the Contractor proposes to conform to the
    information given and the design concept expressed in the Contract
    Documents. Review by the Architect is subject to the limitations of
    Subparagraph 4.2.7. Informational submittals upon which the Architect is not
    expected to take responsive action may be so identified in the Contract
    Documents. Submittals which are not required by the Contract Documents may
    be returned by the Architect without action.

    3.12.5 The Contractor shall review for compliance with the Contract
    Documents, approve and submit to the Architect Shop Drawings, Product Data,
    Samples and similar submittals required by the Contract Documents with
    reasonable promptness and in such sequence as to cause no delay in the Work
    or in the activities of the Owner or of separate contractors. Submittals
    which are not marked as reviewed for compliance with the Contract Documents
    and approved by the Contractor may be returned by the Architect or Owner
    without action. Where required, samples shall be submitted by and at the
    expense of Contractor. Such submittals shall be made not less than thirty
    (30) calendar days prior to the time that the materials represented by such
    samples are needed for incorporation into any Work or incorporation into any
    aspect of the Work requiring manufacture, fabrication, etc. prior to such
    materials being incorporated into the Work. Samples shall be subject to
    Owner's review and materials represented by such samples shall not be
    manufactured, delivered to the Site or incorporated into any Work without
    such review. Each sample must bear a label showing Owner's name, name of the
    item, manufacturer's name, and reference to the appropriate drawing,
    technical specification section and paragraph number, all as applicable.

    3.12.6 By approving and submitting Shop Drawings, Product Data, Samples and
    similar submittals, the Contractor represents that the Contractor has
    determined and verified materials, field measurements and field construction
    criteria related thereto, or will do so, and has checked and coordinated the
    information contained within such submittals with the requirements of the
    Work and of the Contract Documents.

    3.12.7 The Contractor shall perform no portion of the Work for which the
    Contract Documents require submittal and review of Shop Drawings, Product
    Data, Samples or similar submittals until the respective submittal has been
    approved by the Architect.

(C) Copyright 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1967,
1970, 1976, 1987, 1997 by The American Institute of Architects. Fifteenth
Edition. Reproduction of the material herein or substantial quotation of its
provisions without written permission of the AIA violates the copyright laws of
the United States and will subject the violate to legal prosecution. WARNING:
Unlicensed photocopying violates U.S. copyright laws and will subject the
violator to legal prosecution. This document was electronically produced with
permission of the AIA and can be reproduced in accordance with your license
without violation until the date of expiration as noted below. User Document:
a-201 gc' s for neurocrine 9.12 -- 9/19/2003. AIA License Number 1106029, which
expires on 3/28/2004.

[AIA LOGO]

(C)1997 AIA(R)
AIA DOCUMENT A201 - 1997
GENERAL CONDITIONS OF THE CONTRACT FOR CONSTRUCTION

The American Institute of Architects
1735 New York Avenue, N.W.
Washington, D.C. 20006-5292

                                                                              19
<PAGE>

THIS DOCUMENT HAS IMPORTANT LEGAL CONSEQUENCES. CONSULTATION WITH AN ATTORNEY IS
ENCOURAGED WITH RESPECT TO ITS COMPLETION OR MODIFICATION. AUTHENTICATION OF
THIS ELECTRONICALLY DRAFTED AIA DOCUMENT MAY BE MADE BY USING AIA DOCUMENT D401.

This document has been approved and endorsed by The Associated General
Contractors of America.

    3.12.8 The Work shall be in accordance with approved submittals except that
    the Contractor shall not be relieved of responsibility for deviations from
    requirements of the Contract Documents by the Architect's approval of Shop
    Drawings, Product Data, Samples or similar submittals unless the Contractor
    has specifically informed the Architect in writing of such deviation at the
    time of submittal. and (1) the Architect or Owner has given written approval
    to the specific deviation as a minor change in the Work, or (2) a Change
    Order or Construction Change Directive has been issued authorizing the
    deviation. The Contractor shall not be relieved of responsibility for errors
    or omissions in Shop Drawings, Product Data, Samples or similar submittals
    by the Architect's approval thereof.

    3.12.9 The Contractor shall direct specific attention, in writing or on
    resubmitted Shop Drawings, Product Data, Samples or similar submittals, to
    revisions other than those requested by the Architect on previous
    submittals. In the absence of such written notice the Architect's approval
    of a resubmission shall not apply to such revisions.

    3.12.10 The Contractor shall not be required to provide professional
    services which constitute the practice of architecture or engineering unless
    such services are specifically required by the Contract Documents for a
    portion of the Work or unless the Contractor needs to provide such services
    in order to carry out the Contractor's responsibilities for construction
    means, methods, techniques, sequences and procedures. The Contractor shall
    not be required to provide professional services in violation of applicable
    law. If professional design services or certifications by a design
    professional related to systems, materials or equipment are specifically
    required of the Contractor by the Contract Documents, the Owner and the
    Architect will specify all performance and design criteria that such
    services must satisfy. The Contractor shall cause such services or
    certifications to be provided by a properly licensed design professional,
    whose signature and seal shall appear on all drawings, calculations,
    specifications, certifications, Shop Drawings and other submittals prepared
    by such professional. Shop Drawings and other submittals related to the Work
    designed or certified by such professional, if prepared by others, shall
    bear such professional's written approval when submitted to the Architect.
    The Owner and the Architect shall be entitled to rely upon the adequacy,
    accuracy and completeness of the services, certifications or approvals
    performed by such design professionals, provided the Owner and Architect
    have specified to the Contractor all performance and design criteria that
    such services must satisfy. Pursuant to this Subparagraph 3.12.10, the
    Architect will review, approve or take other appropriate action on
    submittals only for the limited purpose of checking for conformance with
    information given and the design concept expressed in the Contract
    Documents. The Contractor shall not be responsible for the adequacy of the
    performance or design criteria required by the Contract Documents.

    3.13 USE OF SITE

    3.13.1 The Contractor shall confine operations at the site to areas
    permitted by law, ordinances, permits and the Contract Documents and shall
    not unreasonably encumber the site with materials or equipment.

    3.13.2 Identification signboards and notices for safety or instruction as
    permitted on the Site only after approval of Owner for format, location and
    quantity, except those required by OSHA, local, state and federal
    regulations.

    3.13.3 Contractor must provide proper and adequate drainage for its
    construction, storage, parking and fabrication areas, including the
    necessary piping for disposal to ditches or sewers. Temporary drainage
    facilities must be removed upon completion of the Work unless Owner directs
    to have the facilities left in place. Contractor must furnish and place any
    necessary surfacing material to avoid loss of time due to muddy conditions.

(C) Copyright 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1967,
1970, 1976, 1987, 1997 by The American Institute of Architects. Fifteenth
Edition. Reproduction of the material herein or substantial quotation of its
provisions without written permission of the AIA violates the copyright laws of
the United States and will subject the violate to legal prosecution. WARNING:
Unlicensed photocopying violates U.S. copyright laws and will subject the
violator to legal prosecution. This document was electronically produced with
permission of the AIA and can be reproduced in accordance with your license
without violation until the date of expiration as noted below. User Document:
a-201 gc' s for neurocrine 9.12 -- 9/19/2003. AIA License Number 1106029, which
expires on 3/28/2004.

[AIA LOGO]

(C)1997 AIA(R)
AIA DOCUMENT A201 - 1997
GENERAL CONDITIONS OF THE CONTRACT FOR CONSTRUCTION

The American Institute of Architects
1735 New York Avenue, N.W.
Washington, D.C. 20006-5292

                                                                              20

<PAGE>

THIS DOCUMENT HAS IMPORTANT LEGAL CONSEQUENCES. CONSULTATION WITH AN ATTORNEY IS
ENCOURAGED WITH RESPECT TO ITS COMPLETION OR MODIFICATION. AUTHENTICATION OF
THIS ELECTRONICALLY DRAFTED AIA DOCUMENT MAY BE MADE BY USING AIA DOCUMENT D401.

This document has been approved and endorsed by The Associated General
Contractors of America.

    3.14 CUTTING AND PATCHING

    3.14.1 The Contractor shall be responsible for cutting, fitting or patching
    required to complete the Work or to make its parts fit together properly.

    3.14.2 The Contractor shall not damage or endanger a portion of the Work or
    fully or partially completed construction of the Owner or separate
    contractors by cutting, patching or otherwise altering such construction, or
    by excavation. The Contractor shall not cut or otherwise alter such
    construction by the Owner or a separate contractor except with written
    consent of the Owner and of such separate contractor; such consent shall not
    be unreasonably withheld. The Contractor shall not unreasonably withhold
    from the Owner or a separate contractor the Contractor's consent to cutting
    or otherwise altering the Work. Contractor shall establish the location and
    extent of service lines in the area of the Work, including calling local
    utilities prior to any digging and immediately notify Owner of Contractor's
    findings, confirming such findings in writing, before commencing Work,
    Contractor must take all precautions to ensure that there are no unknown
    service lines; where Work involves breaking into or connecting to existing
    services, carry out Work at times directed by Owner; and record locations,
    including elevations, of maintained rerouted and abandoned service lines.

    3.15 CLEANING UP

    3.15.1 The Contractor shall keep the premises and surrounding area free from
    accumulation of waste materials or rubbish caused by operations under the
    Contract. At completion of the Work, the Contractor shall remove from and
    about the Project waste materials, rubbish, the Contractor's tools,
    construction equipment, machinery and surplus materials.

    3.15.2 If the Contractor fails to clean up as provided in the Contract
    Documents, the Owner may do so and the cost thereof shall be charged to the
    Contractor.

    3.16 ACCESS TO WORK

    3.16.1 The Contractor shall provide the Owner and Architect access to the
    Work in preparation and progress wherever located.

    3.16.2 All materials and equipment furnished and Work performed must be
    properly inspected by Contractor at its expense, and shall, at all times,
    also be subject to further inspection by Owner or its authorized
    representatives, which representatives shall be afforded full and free
    access to places of business of Contractor and its Subcontractors and
    suppliers for such further inspection. Contractor shall provide safe and
    adequate facilities, Drawings, documents and samples as requested, and
    provide assistance, access and cooperation, including stoppage of Work, to
    perform such examination as may be necessary to determine compliance with
    the requirements of the Contract Documents. Any Work covered prior to any
    inspection or test by Owner which was required to have been witnessed by
    Owner by either Contract Documents or by Owner's prior written notice, shall
    be uncovered and replaced at the expense of Contractor. Failure of Owner to
    make such further inspection to discover defective design, materials, or
    workmanship shall not relieve Contractor of its obligations to reject or
    require the correction of defective Work in accordance with the provisions
    of the Contract Documents.

    3.16.3 If any Work is determined by Owner to be defective or not in
    conformance with the Contract Documents. Contractor shall be notified in
    writing and shall, at Contractor's expense, immediately remove and replace
    or correct such defective Work. If Owner prefers to accept Work that is not
    in conformity with the requirements

(C) Copyright 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1967,
1970, 1976, 1987, 1997 by The American Institute of Architects. Fifteenth
Edition. Reproduction of the material herein or substantial quotation of its
provisions without written permission of the AIA violates the copyright laws of
the United States and will subject the violate to legal prosecution. WARNING:
Unlicensed photocopying violates U.S. copyright laws and will subject the
violator to legal prosecution. This document was electronically produced with
permission of the AIA and can be reproduced in accordance with your license
without violation until the date of expiration as noted below. User Document:
a-201 gc' s for neurocrine 9.12 -- 9/19/2003. AIA License Number 1106029, which
expires on 3/28/2004.

[AIA LOGO]

(C)1997 AIA(R)
AIA DOCUMENT A201 - 1997
GENERAL CONDITIONS OF THE CONTRACT FOR CONSTRUCTION

The American Institute of Architects
1735 New York Avenue, N.W.
Washington, D.C. 20006-5292

                                                                              21

<PAGE>

THIS DOCUMENT HAS IMPORTANT LEGAL CONSEQUENCES. CONSULTATION WITH AN ATTORNEY IS
ENCOURAGED WITH RESPECT TO ITS COMPLETION OR MODIFICATION. AUTHENTICATION OF
THIS ELECTRONICALLY DRAFTED AIA DOCUMENT MAY BE MADE BY USING AIA DOCUMENT D401.

This document has been approved and endorsed by The Associated General
Contractors of America.

    of the Contract Documents. Owner may do so instead of requiring its removal,
    replacement or correction, in which case the Contract sum shall be reduced
    as appropriate and equitable. Such adjustment shall be effected whether or
    not final payment has been made, and if so, Contractor shall immediately pay
    to Owner the amount of such adjustment.

    3.17 ROYALTIES, PATENTS AND COPYRIGHTS

    3.17.1 The Contractor shall pay all royalties and license fees. The
    Contractor shall defend suits or claims for infringement of copyrights and
    patent rights and shall hold the Owner and Architect harmless from loss on
    account thereof, but shall not be responsible for such defense or loss when
    a particular design, process or product of a particular manufacturer or
    manufacturers is required by the Contract Documents or where the copyright
    violations are contained in Drawings, Specifications or other documents
    prepared by the Owner or Architect. However, if the Contractor has knowledge
    that the required design, process or product is an infringement of a
    copyright or a patent, the Contractor shall be responsible for such loss
    unless such information is promptly furnished to the Architect or Owner.

    3.18 INDEMNIFICATION

    3.18.1 To the fullest extent permitted by law the Contractor shall indemnify
    and hold harmless the Owner, Development Manager, Project Lender and their
    agents and employees of any of them from and against claims, damages, losses
    and expenses, including but not limited to attorneys' fees, arising out of
    or resulting from performance of the Work, provided that such claim,
    damage, loss or expense is attributable to bodily injury, sickness,
    disease or death, or to injury to or destruction of tangible property (other
    than the Work itself), but only to the extent caused by the negligent acts
    or omissions of the Contractor, a Subcontractor, anyone directly or
    indirectly employed by them or anyone for whose acts they may be liable,
    regardless of whether or not such claim, damage, loss or expense is caused
    in part by a party indemnified hereunder. Such obligation shall not be
    construed to negate, abridge, or reduce other rights or obligations of
    indemnity which would otherwise exist as to a party or person described in
    this Paragraph 3.18.

    3.18.2 In claims against any person or entity indemnified under this
    Paragraph 3.18 by an employee of the Contractor, a Subcontractor, anyone
    directly or indirectly employed by them or anyone for whose acts they may be
    liable, the indemnification obligation under Subparagraph 3.18.1 shall not
    be limited by a limitation on amount or type of damages, compensation or
    benefits payable by or for the Contractor or a Subcontractor under workers'
    compensation acts, disability benefit acts or other employee benefit acts.

ARTICLE 4 ADMINISTRATION OF THE CONTRACT

    4.1 ARCHITECT

    4.1.1 The Architect is the person lawfully licensed to practice architecture
    or an entity lawfully practicing architecture identified as such in the
    Agreement and is referred to throughout the Contract Documents as if
    singular in number. The term "Architect" means the Architect or the
    Architect's authorized representative.

    4.1.2 Duties, responsibilities and limitations of authority of the Architect
    as set forth in the o Contract Documents shall not be restricted, modified
    or extended without written consent of the Owner, Contractor and Architect.
    Consent shall not be unreasonably withheld.

(C) Copyright 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1967,
1970, 1976, 1987, 1997 by The American Institute of Architects. Fifteenth
Edition. Reproduction of the material herein or substantial quotation of its
provisions without written permission of the AIA violates the copyright laws of
the United States and will subject the violate to legal prosecution. WARNING:
Unlicensed photocopying violates U.S. copyright laws and will subject the
violator to legal prosecution. This document was electronically produced with
permission of the AIA and can be reproduced in accordance with your license
without violation until the date of expiration as noted below. User Document:
a-201 gc' s for neurocrine 9.12 -- 9/19/2003. AIA License Number 1106029, which
expires on 3/28/2004.

[AIA LOGO]

(C)1997 AIA(R)
AIA DOCUMENT A201 - 1997
GENERAL CONDITIONS OF THE CONTRACT FOR CONSTRUCTION

The American Institute of Architects
1735 New York Avenue, N.W.
Washington, D.C. 20006-5292

                                                                              22

<PAGE>

THIS DOCUMENT HAS IMPORTANT LEGAL CONSEQUENCES. CONSULTATION WITH AN ATTORNEY IS
ENCOURAGED WITH RESPECT TO ITS COMPLETION OR MODIFICATION. AUTHENTICATION OF
THIS ELECTRONICALLY DRAFTED AIA DOCUMENT MAY BE MADE BY USING AIA DOCUMENT D401.

This document has been approved and endorsed by The Associated General
Contractors of America.

    4.1.3 If the employment of the Architect is terminated, the Owner shall
    employ a new Architect against whom the Contractor has no reasonable
    objection and whose status under the Contract Documents shall be that of the
    former Architect.

    4.2 ARCHITECT'S ADMINISTRATION OF THE CONTRACT

    4.2.1 The Architect will provide assistance in the administration of the
    Contract as described in the Contract Documents. The Architect will have
    authority to act on behalf of the Owner only to the extent provided in the
    Contract Documents, unless otherwise modified in writing in accordance with
    other provisions of the Contract.

    4.2.2 The Architect, as a representative of the Owner, will visit the site
    at intervals appropriate to the stage of the Contractor's operations (1) to
    become generally familiar with and to keep the Owner informed about the
    progress and quality of the portion of the Work completed, (2) to endeavor
    to guard the Owner against defects and deficiencies in the Work, and (3) to
    determine in general if the Work is being performed in a manner indicating
    that the Work, when fully completed, will be in accordance with the Contract
    Documents. However, the Architect will not be required to make exhaustive or
    continuous on-site inspections to check the quality or quantity of the Work.
    The Architect will neither have control over or charge of, nor be
    responsible for, the construction means, methods, techniques, sequences or
    procedures, or for the safety precautions and programs in connection with
    the Work, since these are solely the Contractor's rights and
    responsibilities under the Contract Documents, except as provided in
    Subparagraph 3.3.1.

    4.2.3 The Architect will not be responsible for the Contractor's failure to
    perform the Work in accordance with the requirements of the Contract
    Documents. The Architect will not have control over or charge of and will
    not be responsible for acts or omissions of the Contractor, Subcontractors,
    or their agents or employees, or any other persons or entities performing
    portions of the Work.

    4.2.4 Communications Facilitating Contract Administration. Except as
    otherwise provided in the Contract Documents or when direct communications
    have been specially authorized, the Owner and Contractor shall endeavor to
    communicate with each other through the Architect about matters arising out
    of or relating to the Contract. Communications by and with the Architect's
    consultants shall be through the Architect. Communications by and with
    Subcontractors and material suppliers shall be through the Contractor.
    Communications by and with separate contractors shall be through the Owner.

    4.2.5 Based on the Architect's evaluations of the Contractor's Applications
    for Payment, the Architect will review and certify the amounts due the
    Contractor and will issue Certificates for Payment in such amounts.

    4.2.6 The Architect will have authority to recommend that the Owner reject
    Work that does not conform in the Architect's opinion to the Contract
    Documents. Whenever the Architect considers it necessary or advisable, the
    Architect will have authority to recommend inspection or testing of the Work
    in accordance with Subparagraphs 13.5.2 and 13.5.3, whether or not such Work
    is fabricated, installed or completed. However, neither this authority of
    the Architect nor a decision made in good faith either to exercise or not to
    exercise such authority shall give rise to a duty or responsibility of the
    Architect to the Contractor, Subcontractors, material and equipment
    suppliers, their agents or employees, or other persons or entities
    performing portions of the Work.

(C) Copyright 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1967,
1970, 1976, 1987, 1997 by The American Institute of Architects. Fifteenth
Edition. Reproduction of the material herein or substantial quotation of its
provisions without written permission of the AIA violates the copyright laws of
the United States and will subject the violate to legal prosecution. WARNING:
Unlicensed photocopying violates U.S. copyright laws and will subject the
violator to legal prosecution. This document was electronically produced with
permission of the AIA and can be reproduced in accordance with your license
without violation until the date of expiration as noted below. User Document:
a-201 gc' s for neurocrine 9.12 -- 9/19/2003. AIA License Number 1106029, which
expires on 3/28/2004.

[AIA LOGO]

(C)1997 AIA(R)
AIA DOCUMENT A201 - 1997
GENERAL CONDITIONS OF THE CONTRACT FOR CONSTRUCTION

The American Institute of Architects
1735 New York Avenue, N.W.
Washington, D.C. 20006-5292

                                                                              23

<PAGE>

THIS DOCUMENT HAS IMPORTANT LEGAL CONSEQUENCES. CONSULTATION WITH AN ATTORNEY IS
ENCOURAGED WITH RESPECT TO ITS COMPLETION OR MODIFICATION. AUTHENTICATION OF
THIS ELECTRONICALLY DRAFTED AIA DOCUMENT MAY BE MADE BY USING AIA DOCUMENT D401.

This document has been approved and endorsed by The Associated General
Contractors of America.

    4.2.7 The Architect will review and approve or take other appropriate action
    upon the Contractor's submittals such as Shop Drawings, Product Data and
    Samples, but only for the limited purpose of checking for conformance with
    information given and the design concept expressed in the Contract
    Documents. The Architect's action will be taken with such reasonable
    promptness as to cause no delay in the Work or in the activities of the
    Owner, Contractor or separate contractors, while allowing sufficient time in
    the Architect's professional judgment to permit adequate review. Review of
    such submittals is not conducted for the purpose of determining the accuracy
    and completeness of other details such as dimensions and quantities, or for
    substantiating instructions for installation or performance of equipment or
    systems, all of which remain the responsibility of the Contractor as
    required by the Contract Documents. The Architect's review of the
    Contractor's submittals shall not relieve the Contractor of the obligations
    under Paragraphs 3.3, 3.5 and 3.12. The Architect's review shall not
    constitute approval of safety precautions or, unless otherwise specifically
    stated by the Architect, of any construction means, methods, techniques,
    sequences or procedures. The Architect's approval of a specific item shall
    not indicate approval of an assembly of which the item is a component.

    4.2.8 The Architect or Owner will prepare Change Orders and Construction
    Change Directives, and may authorize minor changes in the Work as provided
    in Paragraph 7.4. All Change Orders, Construction Directives, and field
    directives shall require the approval of the Owner in writing to be binding
    on the Owner.

    4.2.9 The Architect or Owner will conduct inspections to determine the date
    or dates of Substantial Completion and the date of final completion, will
    receive and forward to the Owner, for the Owner's review and records,
    written warranties and related documents required by the Contract and
    assembled by the Contractor, and will issue a final Certificate for Payment
    upon compliance with the requirements of the Contract Documents.

    4.2.10 If the Owner and Architect agree, the Architect will provide one or
    more project representatives to assist in carrying out the Architect's
    responsibilities at the site. The duties, responsibilities and limitations
    of authority of such project representatives shall be as set forth in an
    exhibit to be incorporated in the Contract Documents.

    4.2.11 The Architect will review and make recommendations regarding matters
    concerning performance under and requirements of, the Contract Documents on
    written request of either the Owner or Contractor. The Architect's response
    to such requests will be made in writing within any time limits agreed upon
    or otherwise with reasonable promptness. If no agreement or request is made
    concerning the time within which interpretations required of the Architect
    shall be furnished in compliance with this Paragraph 4.2, then delay shall
    not be recognized on account of failure by the Architect to furnish such
    interpretations until 15 days after written request is made for them.

    4.2.12 Interpretations and decisions of the Architect will be consistent
    with the intent of and reasonably inferable from the Contract Documents and
    will be in writing or in the form of drawings. When making such
    interpretations and initial decisions, the Architect will endeavor to secure
    faithful performance by both Owner and Contractor, will not show partiality
    to either and will not be liable for results of interpretations or decisions
    so rendered in good faith.

    4.2.13

    In reviewing the quality and progress of the Work and submittals received
    from the Contractor, the Architect is acting solely for the convenience of
    the Owner. Neither the Owner nor Architect has any responsibility to assist
    the Contractor in the supervision or performance of the Work. Unless
    otherwise expressly agreed in

(C) Copyright 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1967,
1970, 1976, 1987, 1997 by The American Institute of Architects. Fifteenth
Edition. Reproduction of the material herein or substantial quotation of its
provisions without written permission of the AIA violates the copyright laws of
the United States and will subject the violate to legal prosecution. WARNING:
Unlicensed photocopying violates U.S. copyright laws and will subject the
violator to legal prosecution. This document was electronically produced with
permission of the AIA and can be reproduced in accordance with your license
without violation until the date of expiration as noted below. User Document:
a-201 gc' s for neurocrine 9.12 -- 9/19/2003. AIA License Number 1106029, which
expires on 3/28/2004.

[AIA LOGO]

(C)1997 AIA(R)
AIA DOCUMENT A201 - 1997
GENERAL CONDITIONS OF THE CONTRACT FOR CONSTRUCTION

The American Institute of Architects
1735 New York Avenue, N.W.
Washington, D.C. 20006-5292

                                                                              24

<PAGE>

THIS DOCUMENT HAS IMPORTANT LEGAL CONSEQUENCES. CONSULTATION WITH AN ATTORNEY IS
ENCOURAGED WITH RESPECT TO ITS COMPLETION OR MODIFICATION. AUTHENTICATION OF
THIS ELECTRONICALLY DRAFTED AIA DOCUMENT MAY BE MADE BY USING AIA DOCUMENT D401.

This document has been approved and endorsed by The Associated General
Contractors of America.

    writing by the Owner in each instance, no approval as to any matter by the
    Owner or Architect shall in any way relieve the Contractor from its
    responsibility for the performance of the Work in strict accordance with the
    Contract Documents, except to the extent such approval is incorporated into
    a Change Order approved by Owner.

    4.3 CLAIMS AND DISPUTES

    4.3.1 Definition. A Claim is a demand or assertion by one of the parties
    seeking, as a matter of right, adjustment or interpretation of Contract
    terms, payment of money, extension of time or other relief with respect to
    the terms of the Contract. The term "Claim" also includes other disputes and
    matters in question between the Owner and Contractor arising out of or
    relating to the Contract. Claims must be initiated by written notice. The
    responsibility to substantiate Claims shall rest with the party making the
    Claim.

    4.3.2 Time Limits on Claims. Claims by either party must be initiated within
    21 days after occurrence of the event giving rise to such Claim or within 21
    days after the claimant first recognizes the condition giving rise to the
    Claim, whichever is later. Claims must be initiated by written notice to the
    Architect or Owner and the other party. For clarification of the foregoing,
    constructive notification by the claimant of the possibility of a claim to
    the other party, shall constitute initiation of the claim in satisfaction of
    the 21 day time limitation.

    4.3.3 Continuing Contract Performance. Pending final resolution of a Claim
    except as otherwise agreed in writing or as provided in Subparagraph 9.7.1
    and Article 14, the Contractor shall proceed diligently with performance of
    the Contract and the Owner shall continue to make payments in accordance
    with the Contract Documents.

    4.3.4 Claims for Concealed or Unknown Conditions. If conditions are
    encountered at the site which are (1) subsurface or otherwise concealed
    physical conditions which differ materially from those indicated in the
    Contract Documents or (2) unknown physical conditions of an unusual nature,
    which differ materially from those ordinarily found to exist and generally
    recognized as inherent in construction activities of the character provided
    for in the Contract Documents, then notice by the observing party shall be
    given to the other party promptly before conditions are disturbed and in no
    event later than 21 days after first observance of the conditions. The
    Architect or Owner as determined by the Owner will promptly investigate such
    conditions and, if they differ materially and cause an increase or decrease
    in the Contractor's cost of, or time required for, performance of any part
    of the Work, will recommend an equitable adjustment in the Contract Sum or
    Contract Time, or both. If the Architect or Owner determines that the
    conditions at the site are not materially different from those indicated in
    the Contract Documents and that no change in the terms of the Contract is
    justified, the Architect or Owner shall so notify the Contractor in writing,
    stating the reasons. Claims by either party in opposition to such
    determination must be made within 21 days after the Architect or Owner has
    given notice of the decision. If the conditions encountered are materially
    different, the Contract Sum and Contract Time shall be equitably adjusted,
    but if the Owner and Contractor cannot agree on an adjustment in the
    Contract Sum or Contract Time, the adjustment shall be referred to the
    Architect for initial review, subject to further proceedings pursuant to
    Paragraph 4.4. No adjustment in the Contract Time or Contract Sum shall be
    permitted, however, in connection with a concealed or unknown condition that
    does not differ materially from those conditions disclosed or that
    reasonably should have been disclosed by the Contractor's (i) prior
    inspections, reviews, and preconstruction services for the Project, or (ii)
    inspections, tests, reviews, and preconstruction services that the
    Contractor bad the opportunity to make or should have performed in
    connection with the Project.

(C) Copyright 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1967,
1970, 1976, 1987, 1997 by The American Institute of Architects. Fifteenth
Edition. Reproduction of the material herein or substantial quotation of its
provisions without written permission of the AIA violates the copyright laws of
the United States and will subject the violate to legal prosecution. WARNING:
Unlicensed photocopying violates U.S. copyright laws and will subject the
violator to legal prosecution. This document was electronically produced with
permission of the AIA and can be reproduced in accordance with your license
without violation until the date of expiration as noted below. User Document:
a-201 gc' s for neurocrine 9.12 -- 9/19/2003. AIA License Number 1106029, which
expires on 3/28/2004.

[AIA LOGO]

(C)1997 AIA(R)
AIA DOCUMENT A201 - 1997
GENERAL CONDITIONS OF THE CONTRACT FOR CONSTRUCTION

The American Institute of Architects
1735 New York Avenue, N.W.
Washington, D.C. 20006-5292

                                                                              25

<PAGE>

THIS DOCUMENT HAS IMPORTANT LEGAL CONSEQUENCES. CONSULTATION WITH AN ATTORNEY IS
ENCOURAGED WITH RESPECT TO ITS COMPLETION OR MODIFICATION. AUTHENTICATION OF
THIS ELECTRONICALLY DRAFTED AIA DOCUMENT MAY BE MADE BY USING AIA DOCUMENT D401.

This document has been approved and endorsed by The Associated General
Contractors of America.

    4.3.5 Claims for Additional Cost. If the Contractor wishes to make Claim for
    an increase in the Contract Sum, written notice as provided herein shall be
    given before proceeding to execute the Work. Prior notice is not required
    for Claims relating to an emergency endangering life or property arising
    under Paragraph 10.6. The Claim Notice shall itemize all claims and shall
    contain sufficient detail and substantiating data to permit evaluation of
    same by the Owner and Architect. No such claim shall be valid unless so
    made. Any change in the Contract Sum resulting from such claim shall be
    authorized by Change Order or Construction Change Directive, as the case may
    be.

    4.3.6 If the Contractor believes additional cost is involved for reasons
    including but not limited to (1) a written interpretation from the
    Architect, (2) an order by the Owner to stop the Work where the Contractor
    was not at fault, (3) a written order for a minor change in the Work issued
    by the Architect, (4) failure of payment by the Owner, (5) termination of
    the Contract by the Owner, (6) Owner's suspension or (7) other reasonable
    grounds, Claim shall be filed in accordance with this Paragraph 4.3.

    4.3.7 Claims for Additional Time

    4.3.7.1 If the Contractor wishes to make Claim for an increase in the
    Contract Time, written notice as provided herein shall be given. The
    Contractor's Claim may include an estimate of cost and of probable effect of
    delay on progress of the Work. In the case of a continuing delay only one
    Claim is necessary.

    4.3.7.2 If adverse weather conditions are the basis for a Claim for
    additional time, such Claim shall be documented by data substantiating that
    weather conditions had an adverse effect on the scheduled construction.

    4.3.8 Injury or Damage to Person or Property. If either party to the
    Contract suffers injury or damage to person or property because of an act or
    omission of the other party, or of others for whose acts such party is
    legally responsible, written notice of such injury or damage, whether or not
    insured, shall be given to the other party within a reasonable time not
    exceeding 21 days after discovery. The notice shall provide sufficient
    detail to enable the other party to investigate the matter.

    4.3.9 If unit prices are stated in the Contract Documents or subsequently
    agreed upon, and if quantities originally contemplated are materially
    changed in a proposed Change Order or Construction Change Directive so that
    application of such unit prices to quantities of Work proposed will cause
    substantial inequity to the Owner or Contractor, the applicable unit prices
    shall be equitably adjusted.

    4.3.10 Claims for Consequential Damages. The Contractor and Owner waive
    Claims against each other for consequential damages arising out of or
    relating to this Contract. This mutual waiver includes:

        .1  damages incurred by the Owner for rental expenses, for losses of
            use, income, profit, financing, business and reputation, and for
            loss of management or employee productivity or of the services of
            such persons; and

        .2  damages incurred by the Contractor for principal office expenses
            including the compensation of personnel stationed there, for losses
            of financing, business and reputation, and for loss of profit except
            anticipated profit arising directly from the Work.

    This mutual waiver is applicable, without limitation, to all consequential
    damages due to either party's termination in accordance with Article 14.
    Nothing contained in this Subparagraph 4.3.10

(C) Copyright 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1967,
1970, 1976, 1987, 1997 by The American Institute of Architects. Fifteenth
Edition. Reproduction of the material herein or substantial quotation of its
provisions without written permission of the AIA violates the copyright laws of
the United States and will subject the violate to legal prosecution. WARNING:
Unlicensed photocopying violates U.S. copyright laws and will subject the
violator to legal prosecution. This document was electronically produced with
permission of the AIA and can be reproduced in accordance with your license
without violation until the date of expiration as noted below. User Document:
a-201 gc' s for neurocrine 9.12 -- 9/19/2003. AIA License Number 1106029, which
expires on 3/28/2004.

[AIA LOGO]

(C)1997 AIA(R)
AIA DOCUMENT A201 - 1997
GENERAL CONDITIONS OF THE CONTRACT FOR CONSTRUCTION

The American Institute of Architects
1735 New York Avenue, N.W.
Washington, D.C. 20006-5292

                                                                              26
<PAGE>
THIS DOCUMENT HAS IMPORTANT LEGAL CONSEQUENCES. CONSULTATION WITH AN ATTORNEY IS
ENCOURAGED WITH RESPECT TO ITS COMPLETION OR MODIFICATION. AUTHENTICATION OF
THIS ELECTRONICALLY DRAFTED AIA DOCUMENT MAY BE MADE BY USING AIA DOCUMENT D401.

This document has been approved and endorsed by The Associated General
Contractors of America.

    shall be deemed to preclude an award of liquidated direct damages, when
    applicable, in accordance with the requirements of the Contract Documents.

    In no event shall either party be liable to the other for special, indirect
    or consequential damages, including damages for economic loss, such as
    business interruption or loss of profits, however the same may be caused,
    including, without limitation, the fault, breach of contract, tort
    (including the concurrent or sole and exclusive negligence), strict
    liability or otherwise of the other party.

    4.4 RESOLUTION OF CLAIMS AND DISPUTES

    4.4.1 Decision of Architect or Owner. Claims, including those alleging an
    error or omission by the Architect shall be referred initially to the
    Architect or Owner for decision. An initial decision by the Architect, or
    Owner shall be required as a condition precedent to mediation, arbitration
    or litigation of all Claims between the Contractor and Owner arising prior
    to the date final payment is due, unless 30 days have passed after the Claim
    has been referred to the Architect or Owner with no decision having been
    rendered by the Owner or Architect. The Architect will not decide disputes
    between the Contractor and persons or entities or the Owner.

    4.4.2 The Architect or Owner will review Claims and within ten days of the
    receipt of the Claim take one or more of the following actions: (1) request
    additional supporting data from the claimant or a response with supporting
    data from the other party, (2) reject the Claim in whole or in part, (3)
    approve the Claim, (4) suggest a compromise, or (5) advise the parties that
    the Architect or Owner is unable to resolve the Claim if the Architect or
    Owner lacks sufficient information to evaluate the merits of the Claim or if
    the Architect or Owner concludes that, in the Architect's or Owner's sole
    discretion, it would be inappropriate for the Owner or Architect to resolve
    the Claim.

    4.4.2.1 The Owner or Architect shall provide the Contractor with written
    response and explanation in support of their selected action to each claim.

    4.4.3 In evaluating Claims, the Architect or Owner may, but shall not be
    obligated to, consult with or seek information from either party or from
    persons with special knowledge or expertise who may assist the Architect or
    Owner in rendering a decision. The Architect may request the Owner to
    authorize retention of such persons at the Owner's expense.

    4.4.4 If the Architect or Owner requests a party to provide a response to a
    Claim or to furnish additional supporting data, such party shall respond,
    within ten days after receipt of such request, and shall either provide a
    response on the requested supporting data, advise the Architect or Owner
    when the response or supporting data will be furnished or advise the
    Architect or Owner that no supporting data will be furnished. Upon receipt
    of the response or supporting data, if any, the Architect or Owner will
    either reject or approve the Claim in whole or in part.

    4.4.5 The Architect or Owner will approve or reject Claims by written
    decision, which shall state the reasons therefor and which shall notify the
    parties of any change in the Contract Sum or Contract Time or both. The
    approval or rejection of a Claim by the Architect or Owner shall be final
    and binding on the parties but subject to litigation.

    4.4.6 When a written decision of the Architect or Owner states that (1) the
    decision is final but subject to litigation and (2) a demand for arbitration
    of a Claim covered by such decision must be made within 30 days after the
    date on which the party making the demand receives the final written
    decision, then failure to

(C) Copyright 1911, 1915, 1918, 1925,1937, 1951, 1958, 1961, 1963, 1966, 1967,
1970, 1976, 1987, 1997 by The American Institute of Architects. Fifteenth
Edition. Reproduction of the material herein or substantial quotation of its
provisions without written permission of the AIA violates the copyright laws of
the United States and will subject the violate to legal prosecution. WARNING:
Unlicensed photocopying violates U.S. copyright laws and will subject the
violator to legal prosecution. This document was electronically produced with
permission of the AIA and can be reproduced in accordance with your license
without violation until the date of expiration as noted below. User Document:
a-201 gc's for neurocrine 9.12 -- 9/19/2003. AIA License Number 1106029, which
expires on 3/28/2004.

[AIA LOGO]

(C)1997 AIA(R)
AIA DOCUMENT A201 - 1997
GENERAL CONDITIONS OF THE CONTRACT FOR CONSTRUCTION

The American Institute of Architects
1735 New York Avenue, N.W.
Washington, D.C. 20006-5292

                                                                              27

<PAGE>
THIS DOCUMENT HAS IMPORTANT LEGAL CONSEQUENCES. CONSULTATION WITH AN ATTORNEY IS
ENCOURAGED WITH RESPECT TO ITS COMPLETION OR MODIFICATION. AUTHENTICATION OF
THIS ELECTRONICALLY DRAFTED AIA DOCUMENT MAY BE MADE BY USING AIA DOCUMENT D401.

This document has been approved and endorsed by The Associated General
Contractors of America.

    commence litigation within said 30 days' period shall result in the
    Architect's or Owner's decision becoming final and binding upon the Owner
    and Contractor. If the Architect or Owner renders a decision after
    litigation has commenced, such decision may be entered as evidence, but
    shall not supersede arbitration proceedings unless the decision is
    acceptable to all parties concerned.

    4.4.7 Upon receipt of a Claim against the Contractor or at any time
    thereafter, the Architect or the Owner may, but is not obligated to, notify
    the surety, if any, of the nature and amount of the Claim. If the Claim
    relates to a possibility of a Contractor's default, the Architect or the
    Owner may, but is not obligated to, notify the surety and request the
    surety's assistance in resolving the controversy.

    4.4.8 If a Claim relates to or is the subject of a mechanic's lien, the
    party asserting such Claim may proceed in accordance with applicable law to
    comply with the lien notice or filing deadlines prior to resolution of the
    Claim by the Architect or Owner, by mediation or by arbitration.

    4.5 MEDIATION

    4.5.1

    4.5.2

    4.5.3

    4.6 ARBITRATION

    4.6.1

    4.6.2

    4.6.3

(C) Copyright 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1967,
1970, 1976, 1987, 1997 by The American Institute of Architects. Fifteenth
Edition. Reproduction of the material herein or substantial quotation of its
provisions without written permission of the AIA violates the copyright laws of
the United States and will subject the violate to legal prosecution. WARNING:
Unlicensed photocopying violates U.S. copyright laws and will subject the
violator to legal prosecution. This document was electronically produced with
permission of the AIA and can be reproduced in accordance with your license
without violation until the date of expiration as noted below. User Document:
a-201 gc's for neurocrine 9.12 -- 9/19/2003. AIA License Number 1106029, which
expires on 3/28/2004.

[AIA LOGO]

(C)1997 AIA(R)
AIA DOCUMENT A201 - 1997
GENERAL CONDITIONS OF THE CONTRACT FOR CONSTRUCTION

The American Institute of Architects
1735 New York Avenue, N.W.
Washington, D.C. 20006-5292

                                                                              28

<PAGE>

THIS DOCUMENT HAS IMPORTANT LEGAL CONSEQUENCES. CONSULTATION WITH AN ATTORNEY IS
ENCOURAGED WITH RESPECT TO ITS COMPLETION OR MODIFICATION. AUTHENTICATION OF
THIS ELECTRONICALLY DRAFTED AIA DOCUMENT MAY BE MADE BY USING AIA DOCUMENT D401.

This document has been approved and endorsed by The Associated General
Contractors of America.

    4.6.4

    4.6.5

    4.6.6

ARTICLE 5 SUBCONTRACTORS

    5.1 DEFINITIONS

    5.1.1 A Subcontractor is a person or entity who has a direct contract with
    the Contractor to perform a portion of the Work at the site. The term
    "Subcontractor" is referred to throughout the Contract Documents as if
    singular in number and means a Subcontractor or an authorized representative
    of the Subcontractor. The term "Subcontractor" does not include a separate
    contractor or subcontractors of a separate contractor.

    5.1.2 A Sub-subcontractor is a person or entity who has a direct or indirect
    contract with a Subcontractor to perform a portion of the Work at the site.
    The term "Sub-subcontractor" is referred to throughout the Contract
    Documents as if singular in number and means a Sub subcontractor or an
    authorized representative of the Sub-subcontractor.

    5.2 AWARD OF SUBCONTRACTS AND OTHER CONTRACTS FOR PORTIONS OF THE WORK

    5.2.1 Unless otherwise stated in the Contract Documents or the bidding
    requirements, the Contractor, as soon as practicable after award of the
    Contract, shall furnish in writing to the Owner through the Architect or
    Owner the names of persons or entities (including those who are to furnish
    materials or equipment fabricated to a special design) proposed for each
    principal portion of the Work. The Architect will promptly reply to the
    Contractor in writing stating whether or not the Owner or the Architect,
    after due investigation, has reasonable objection to any such proposed
    person or entity. Failure of the Owner or Architect to reply promptly shall
    constitute notice of no reasonable objection.

(C) Copyright 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1967,
1970, 1976, 1987, 1997 by The American Institute of Architects. Fifteenth
Edition. Reproduction of the material herein or substantial quotation of its
provisions without written permission of the AIA violates the copyright laws of
the United States and will subject the violate to legal prosecution. WARNING:
Unlicensed photocopying violates U.S. copyright laws and will subject the
violator to legal prosecution. This document was electronically produced with
permission of the AIA and can be reproduced in accordance with your license
without violation until the date of expiration as noted below. User Document:
a-201 gc's for neurocrine 9.12 -- 9/19/2003. AIA License Number 1106029, which
expires on 3/28/2004.

[AIA LOGO]

(C)1997 AIA(R)
AIA DOCUMENT A201 - 1997
GENERAL CONDITIONS OF THE CONTRACT FOR CONSTRUCTION

The American Institute of Architects
1735 New York Avenue, N.W.
Washington, D.C. 20006-5292

                                                                              29

<PAGE>

THIS DOCUMENT HAS IMPORTANT LEGAL CONSEQUENCES. CONSULTATION WITH AN ATTORNEY IS
ENCOURAGED WITH RESPECT TO ITS COMPLETION OR MODIFICATION. AUTHENTICATION OF
THIS ELECTRONICALLY DRAFTED AIA DOCUMENT MAY BE MADE BY USING AIA DOCUMENT D401.

This document has been approved and endorsed by The Associated General
Contractors of America.

    5.2.2 The Contractor shall not contract with a proposed person or entity to
    whom the Owner or Architect has made reasonable and timely objection. The
    Contractor shall not be required to contract with anyone to whom the
    Contractor has made reasonable objection.

    5.2.3 If the Owner or Architect has reasonable objection to a person or
    entity proposed by the Contractor, the Contractor shall propose another to
    whom the Owner or Architect has no reasonable objection. If the proposed but
    rejected Subcontractor was reasonably capable of performing the Work, the
    Contract Sum and Contract Time shall be increased or decreased by the
    difference, if any, occasioned by such change, and an appropriate Change
    Order shall be issued before commencement of the substitute Subcontractor's
    Work. However, no increase in the Contract Sum or Contract Time shall be
    allowed for such change unless the Contractor has acted promptly and
    responsively in submitting names as required.

    5.2.4 The Contractor shall not change a Subcontractor, person or entity
    previously selected if the Owner or Architect makes reasonable objection to
    such substitute.

    5.3 SUBCONTRACTUAL RELATIONS

    5.3.1 By appropriate written agreement the Contractor shall require each
    Subcontractor, to the extent of the Work to be performed by the
    Subcontractor, to be bound to the Contractor by terms of the Contract
    Documents, and to assume toward the Contractor all the obligations and
    responsibilities, for including the responsibility for safety of the
    Subcontractor's Work, which the Contractor, by these Documents, assumes
    toward the Owner and Architect. Each subcontract agreement shall preserve
    and protect the rights of the Owner and Architect under the Contract
    Documents with respect to the Work to be performed by the Subcontractor so
    that subcontracting thereof will not prejudice such rights, and shall allow
    to the Subcontractor, unless specifically provided otherwise in the
    subcontract agreement, the benefit of all rights, remedies and redress
    against the Contractor that the Contractor, by the Contract Documents, has
    against the Owner. Where appropriate, the Contractor shall require each
    Subcontractor to enter into similar agreements with Sub-subcontractors. The
    Contractor shall make available to each proposed Subcontractor, prior to the
    execution of the subcontract agreement, copies of the Contract Documents to
    which the Subcontractor will be bound, and, upon written request of the
    Subcontractor, identify to the Subcontractor terms and conditions of the
    proposed subcontract agreement which may be at variance with the Contract
    Documents. Subcontractors will similarly make copies of applicable portions
    of such documents available to their respective proposed Sub-
    subcontractors.

    5.4 CONTINGENT ASSIGNMENT OF SUBCONTRACTS

    5.4.1 Each subcontract agreement for a portion of the Work is assigned by
    the Contractor to the Owner provided that:

            .1  assignment is effective only after termination of the Contract
                by the Owner for cause pursuant to Paragraph 14.2 and only for
                those subcontract agreements which the Owner accepts by
                notifying the Subcontractor and Contractor in writing; and

            .2  assignment is subject to the prior rights of the surety, if any,
                obligated under bond relating to the Contract.

            .3  All subcontract agreements and purchase orders shall provide
                that they are freely assignable by the Contractor to Owner and
                any Lender, and every subcontract shall be written to provide
                that Owner shall be a third- part beneficiary of the guarantee
                of materials and workmanship, and free assignability thereof by
                Owner. It is further agreed and understood that such right of
                assignment is part of the consideration to the Owner for

(C) Copyright 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1967,
1970, 1976, 1987, 1997 by The American Institute of Architects. Fifteenth
Edition. Reproduction of the material herein or substantial quotation of its
provisions without written permission of the AIA violates the copyright laws of
the United States and will subject the violate to legal prosecution. WARNING:
Unlicensed photocopying violates U.S. copyright laws and will subject the
violator to legal prosecution. This document was electronically produced with
permission of the AIA and can be reproduced in accordance with your license
without violation until the date of expiration as noted below. User Document:
a-201 gc's for neurocrine 9.12 -- 9/19/2003. AIA License Number 1106029, which
expires on 3/28/2004.

[AIA LOGO]

(C)1997 AIA(R)
AIA DOCUMENT A201 - 1997
GENERAL CONDITIONS OF THE CONTRACT FOR CONSTRUCTION

The American Institute of Architects
1735 New York Avenue, N.W.
Washington, D.C. 20006-5292

                                                                              30

<PAGE>

THIS DOCUMENT HAS IMPORTANT LEGAL CONSEQUENCES. CONSULTATION WITH AN ATTORNEY IS
ENCOURAGED WITH RESPECT TO ITS COMPLETION OR MODIFICATION. AUTHENTICATION OF
THIS ELECTRONICALLY DRAFTED AIA DOCUMENT MAY BE MADE BY USING AIA DOCUMENT D401.

This document has been approved and endorsed by The Associated General
Contractors of America.

                entering into the Agreement with the Contractor and may not be
                withdrawn prior to Final Completion.

    5.4.2 Upon such assignment, if the Work has been suspended for more than 30
    days, the Subcontractor's compensation shall be equitably adjusted for
    increases in cost resulting from the suspension.

ARTICLE 6 CONSTRUCTION BY OWNER OR BY SEPARATE CONTRACTORS

    6.1 OWNER'S RIGHT TO PERFORM CONSTRUCTION AND TO AWARD SEPARATE CONTRACTS

    6.1.1 The Owner reserves the right to perform construction or operations
    related to the Project with the Owner's own forces, and to award separate
    contracts in connection with other portions of the Project or other
    construction or operations on the site under Conditions of the Contract
    identical or substantially similar to these including those portions related
    to insurance and waiver of subrogation, and to schedule its work, and to
    cause Contractor to schedule the Work, in such a manner as will minimize the
    interference between Owner's Work and Contractor's Work, and Contractor
    shall cooperate with the persons performing such concurrent activities at
    the site. If the Contractor claims that delay or additional cost is involved
    because of such action by the Owner, the Contractor shall make such Claim as
    provided in Paragraph 4.3.

    6.1.2 When separate contracts are awarded for different portions of the
    Project or other construction or operations on the site, the term
    "Contractor" in the Contract Documents in each case shall mean the
    Contractor who executes each separate Owner-Contractor Agreement.

    6.1.3 The Owner shall provide for coordination of the activities of the
    Owner's own forces and of each separate contractor with the Work of the
    Contractor, who shall cooperate with them. The Contractor shall participate
    with other separate contractors and the Owner in reviewing their
    construction schedules when directed to do so. The Contractor shall make any
    revisions to the construction schedule deemed necessary after a joint review
    and mutual agreement. The construction schedules shall then constitute the
    schedules to be used by the Contractor, separate contractors and the Other
    until subsequently revised.

    6.1.4 Unless otherwise provided in the Contract Documents, when the Owner
    performs construction or operations related to the Project with the Owner's
    own forces, the Owner shall be deemed to be subject to the same obligations
    and to have the same rights which apply to the Contractor under the
    Conditions of the Contract, including, without excluding others, those
    stated in Article 3, this Article 6 and Articles 10,11 and 12.

    6.2 MUTUAL RESPONSIBILITY

    6.2.1 The Contractor shall afford the Owner and separate contractors
    reasonable opportunity for introduction and storage of their materials and
    equipment and performance of their activities, and shall connect and
    coordinate the Contractor's construction and operations with theirs as
    required by the Contract Documents.

    6.2.2 If part of the Contractor's Work depends for proper execution or
    results upon construction or operations by the Owner or a separate
    contractor, the Contractor shall, prior to proceeding with that portion of
    the Work, promptly report to the Owner or Architect apparent discrepancies
    or defects in such other construction that would render it unsuitable for
    such proper execution and results. Failure of the Contractor so to report
    shall constitute an acknowledgment that the Owner's or separate contractor's
    completed or partially completed construction is fit and proper to receive
    the Contractor's Work, except as to defects not then reasonably
    discoverable.

(C) Copyright 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1967,
1970, 1976, 1987, 1997 by The American Institute of Architects. Fifteenth
Edition. Reproduction of the material herein or substantial quotation of its
provisions without written permission of the AIA violates the copyright laws of
the United States and will subject the violate to legal prosecution. WARNING:
Unlicensed photocopying violates U.S. copyright laws and will subject the
violator to legal prosecution. This document was electronically produced with
permission of the AIA and can be reproduced in accordance with your license
without violation until the date of expiration as noted below. User Document:
a-201 gc's for neurocrine 9.12 -- 9/19/2003. AIA License Number 1106029, which
expires on 3/28/2004.

[AIA LOGO]

(C)1997 AIA(R)
AIA DOCUMENT A201 - 1997
GENERAL CONDITIONS OF THE CONTRACT FOR CONSTRUCTION

The American Institute of Architects
1735 New York Avenue, N.W.
Washington, D.C. 20006-5292

                                                                              31

<PAGE>

THIS DOCUMENT HAS IMPORTANT LEGAL CONSEQUENCES. CONSULTATION WITH AN ATTORNEY IS
ENCOURAGED WITH RESPECT TO ITS COMPLETION OR MODIFICATION. AUTHENTICATION OF
THIS ELECTRONICALLY DRAFTED AIA DOCUMENT MAY BE MADE BY USING AIA DOCUMENT D401.

This document has been approved and endorsed by The Associated General
Contractors of America.

    6.2.3 The Owner shall be reimbursed by the Contractor for reasonable costs
    incurred by the Owner which are payable to a separate contractor because of
    Contractor caused delays, or defective construction of the Contractor. The
    Owner shall be responsible to the Contractor for costs incurred by the
    Contractor because of delays, improperly timed activities, damage to the
    Work or defective construction of a separate contractor.

    6.2.4 The Contractor shall promptly remedy damage wrongfully caused by the
    Contractor to completed or partially completed construction or to property
    of the Owner or separate contractors as provided in Subparagraph 10.2.5.

    6.2.5 The Owner and each separate contractor shall have the same
    responsibilities for cutting and patching as are described for the
    Contractor in Subparagraph 3.14.

    6.3 OWNER'S RIGHT TO CLEAN UP

    6.3.1 If a dispute arises among the Contractor, separate contractors and the
    Owner as to the responsibility under their respective contracts for
    maintaining the premises and surrounding area free from waste materials and
    rubbish, the Owner may clean up and the Architect will allocate the cost
    among those responsible.

ARTICLE 7 CHANGES IN THE WORK

    7.1 GENERAL

    7.1.1 Changes in the Work may be accomplished after execution of the
    Contract, and without invalidating the Contract, by Change Order,
    Construction Change Directive or order for a minor change in the Work,
    subject to the limitations stated in this Article 7 and elsewhere in the
    Contract Documents.

    7.1.2 A Change Order shall be based upon agreement among the Owner and,
    Contractor, a Construction Change Directive requires agreement by the Owner
    and Architect and may or may not be agreed to by the Contractor; an order
    for a minor change in the Work may be issued by the Owner or Architect. When
    submitting a Change Order, the Contractor shall include and set forth in
    clear and precise detail breakdown of labor and materials for all trades
    involved and the estimated impact on the construction schedule. The
    Contractor shall furnish spread sheets from which the breakdowns were
    prepared, plus spread sheets if requested of any Subcontractors.

    7.1.3 Changes in the Work shall be performed under applicable provisions of
    the Contract Documents, and the Contractor shall proceed promptly, unless
    otherwise provided in the Change Order, Construction Change Directive or
    order for a minor change in the Work.

    7.2 CHANGE ORDERS

    7.2.1 A Change Order is a written instrument signed by the Owner and
    Contractor stating their agreement upon all of the following:

            .1  change in the Work;

            .2  the amount of the adjustment, if any, in the Contract Sum; and

            .3  the extent of the adjustment, if any, in the Contract Time.

    7.2.2 Methods used in determining adjustments to the Contract Sum may
    include those listed in Subparagraph 7.3.3.

    7.3 CONSTRUCTION CHANGE DIRECTIVES

(C) Copyright 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1967,
1970, 1976, 1987, 1997 by The American Institute of Architects. Fifteenth
Edition. Reproduction of the material herein or substantial quotation of its
provisions without written permission of the AIA violates the copyright laws of
the United States and will subject the violate to legal prosecution. WARNING:
Unlicensed photocopying violates U.S. copyright laws and will subject the
violator to legal prosecution. This document was electronically produced with
permission of the AIA and can be reproduced in accordance with your license
without violation until the date of expiration as noted below. User Document:
a-201 gc's for neurocrine 9.12 -- 9/19/2003. AIA License Number 1106029, which
expires on 3/28/2004.

[AIA LOGO]

(C)1997 AIA(R)
AIA DOCUMENT A201 - 1997
GENERAL CONDITIONS OF THE CONTRACT FOR CONSTRUCTION

The American Institute of Architects
1735 New York Avenue, N.W.
Washington, D.C. 20006-5292

                                                                              32

<PAGE>

THIS DOCUMENT HAS IMPORTANT LEGAL CONSEQUENCES. CONSULTATION WITH AN ATTORNEY IS
ENCOURAGED WITH RESPECT TO ITS COMPLETION OR MODIFICATION. AUTHENTICATION OF
THIS ELECTRONICALLY DRAFTED AIA DOCUMENT MAY BE MADE BY USING AIA DOCUMENT D401.

This document has been approved and endorsed by The Associated General
Contractors of America.

    7.3.1 A Construction Change Directive is a written order prepared by the
    Architect or Owner and signed by the Owner, directing a change in the Work
    prior to agreement on adjustment, if any, in the Contract Sum or Contract
    Time, or both. The Owner may by Construction Change Directive, without
    invalidating the Contract, order changes in the Work within the general
    scope of the Contract consisting of additions, deletions or other revisions,
    the Contract Sum and Contract Time being adjusted accordingly. Except as
    permitted in Paragraph 7.3 and Subparagraph 9.7.2, a change in the Contract
    Sum or the Contract Time shall be accomplished only by Change Order.
    Accordingly, no course of conduct or dealings between the parties, nor
    express or implied acceptance of alterations or additions to the Work, and
    no claim that Owner has been unjustly enriched by any alteration of or
    addition to the Work, whether or not there is, in fact, an unjust enrichment
    to the Work, shall be the basis of any claim to an increase in any amounts
    due under the Contract Documents or a change in any time period provided for
    in the Contract Documents.

    7.3.2 A Construction Change Directive shall be used in the absence of total
    agreement on the terms of a Change Order.

    7.3.3 If the Construction Change Directive provides for an adjustment to the
    Contract Sum, the adjustment shall be based on one of the following methods:

            .1  mutual acceptance of a lump sum properly itemized and supported
                by sufficient substantiating data to permit evaluation;

            .2  unit prices stated in the Contract Documents or subsequently
                agreed upon;

            .3  cost to be determined in a manner agreed upon by the parties and
                a mutually acceptable fixed or percentage fee; or

            .4  as provided in Subparagraph 7.3.6.

    7.3.4 Upon receipt of a Construction Change Directive, the Contractor shall
    promptly proceed with the change in the Work involved and advise the owner
    of the Contractor's agreement or disagreement with the method, if any,
    provided in the Construction Change Directive for determining the proposed
    adjustment in the Contract Sum or Contract Time.

    7.3.5 A Construction Change Directive signed by the Contractor indicates the
    agreement of the Contractor therewith, including adjustment in Contract Sum
    and Contract Time or the method for determining them. Such agreement shall
    be effective immediately and shall be recorded as a Change Order.

    7.3.6 If the Contractor does not respond promptly or disagrees with the
    method for adjustment in the Contract Sum, the method and the adjustment
    shall be determined by the Architect or Owner on the basis of reasonable
    expenditures and savings of those performing the Work attributable to the
    change, including, in case of an increase in the Contract Sum, Contractor's
    Fee in the amount set forth in Section 5.1.2.1 of this Agreement. In such
    case, and also under Clause 7.3.3.3, the Contractor shall keep and present,
    in such form as the Architect or Owner may prescribe, an itemized accounting
    together with appropriate supporting data. Unless otherwise provided in the
    Contract Documents, costs for the purposes of this Subparagraph 7.3.6 shall
    be limited to the following:

            .1  costs of labor to the extent directly attributable to the
                change, including ' social security, old age and unemployment
                insurance, fringe benefits required by agreement or custom, and
                workers' compensation insurance;

            .2  costs of materials, supplies and equipment, including cost of
                transportation, whether incorporated or consumed;

(C) Copyright 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1967,
1970, 1976, 1987, 1997 by The American Institute of Architects. Fifteenth
Edition. Reproduction of the material herein or substantial quotation of its
provisions without written permission of the AIA violates the copyright laws of
the United States and will subject the violate to legal prosecution. WARNING:
Unlicensed photocopying violates U.S. copyright laws and will subject the
violator to legal prosecution. This document was electronically produced with
permission of the AIA and can be reproduced in accordance with your license
without violation until the date of expiration as noted below. User Document:
a-201 gc's for neurocrine 9.12 -- 9/19/2003. AIA License Number 1106029, which
expires on 3/28/2004.

[AIA LOGO]

(C)1997 AIA(R)
AIA DOCUMENT A201 - 1997
GENERAL CONDITIONS OF THE CONTRACT FOR CONSTRUCTION

The American Institute of Architects
1735 New York Avenue, N.W.
Washington, D.C. 20006-5292

                                                                              33
<PAGE>

THIS DOCUMENT HAS IMPORTANT LEGAL CONSEQUENCES. CONSULTATION WITH AN ATTORNEY IS
ENCOURAGED WITH RESPECT TO ITS COMPLETION OR MODIFICATION. AUTHENTICATION OF
THIS ELECTRONICALLY DRAFTED AIA DOCUMENT MAY BE MADE BY USING AIA DOCUMENT D401.

This document has been approved and endorsed by The Associated General
Contractors of America.

            .3  rental costs of machinery and equipment, exclusive of hand
                tools, whether rented from the Contractor or others;

            .4  costs of premiums for all bonds and insurance, permit fees, and
                sales, use or similar taxes related to the Work; and

            .5  additional costs of supervision and field or office personnel to
                the extent directly attributable to the change.

    7.3.7 The amount of credit to be allowed by the Contractor to the Owner for
    a deletion or change which results in a net decrease in the Contract Sum
    shall be actual net cost as confirmed by the Architect. When both additions
    and credits covering related Work or substitutions are involved in a change,
    the allowance for overhead and profit shall be figured on the basis of net
    increase, if any, with respect to that change.

    7.3.8 Pending final determination of the total cost of a Construction Change
    Directive to the Owner, amounts not in dispute for such changes in the Work
    shall be included in Applications for Payment accompanied by a Change Order
    indicating the parties' agreement with part or all of such costs. For any
    portion of such cost that remains in dispute, the Owner or Architect will
    make an interim determination for purposes of monthly certification for
    payment for those costs. That determination of cost shall adjust the
    Contract Sum on the same basis as a Change Order, subject to the right of
    either party to disagree and assert a claim in accordance with Article 4.

    7.3.9 When the Owner and Contractor agree with the recommendations made by
    the Architect concerning the adjustments in the Contract Sum and Contract
    Time, or otherwise reach agreement upon the adjustments, such agreement
    shall be effective < immediately and shall be recorded by preparation and
    execution of an appropriate Change Order.

    7.4 MINOR CHANGES IN THE WORK

    7.4.1 The Architect will have authority to order minor changes in the Work
    not involving adjustment in the Contract Sum or extension of the Contract
    Time and not inconsistent with the intent of the Contract Documents. Such
    changes shall be effected by written order and shall be binding on the Owner
    and Contractor. The Contractor shall carry out such written orders promptly.

    7.4.2. The Owner will have authority to order minor changes in the Work not
    involving adjustment in the Contract sum or extension of the Substantial
    Completion Deadline and not inconsistent with the intent of the Contract
    Documents. Such changes shall be administered in accordance with the
    procedures set forth in Paragraph 7.3 hereof, except that a Construction
    Change Directive issued to the Contractor pursuant to this Subparagraph
    7.4.2 may or may not be signed by the Architect.

ARTICLE 8 TIME

    8.1 DEFINITIONS

    8.1.1 Unless otherwise provided, Contract Time is the period of time,
    including authorized adjustments, allotted in the Contract Documents for
    Substantial Completion of the Work.

    8.1.2 The dale of commencement of the Work is the date established in the
    Agreement.

    8.1.3 The dale of Substantial Completion is the date certified by the
    Architect in accordance with Paragraph 9.8.

(C) Copyright 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1967,
1970, 1976, 1987, 1997 by The American Institute of Architects. Fifteenth
Edition. Reproduction of the material herein or substantial quotation of its
provisions without written permission of the AIA violates the copyright laws of
the United States and will subject the violate to legal prosecution. WARNING:
Unlicensed photocopying violates U.S. copyright laws and will subject the
violator to legal prosecution. This document was electronically produced with
permission of the AIA and can be reproduced in accordance with your license
without violation until the date of expiration as noted below. User Document:
a-201 gc's for neurocrine 9.12 -- 9/19/2003. AIA License Number 1106029, which
expires on 3/28/2004.

[AIA LOGO]

(C)1997 AIA(R)
AIA DOCUMENT A201 - 1997
GENERAL CONDITIONS OF THE CONTRACT FOR CONSTRUCTION

The American Institute of Architects
1735 New York Avenue, N.W.
Washington, D.C. 20006-5292

                                                                              34
<PAGE>

THIS DOCUMENT HAS IMPORTANT LEGAL CONSEQUENCES. CONSULTATION WITH AN ATTORNEY IS
ENCOURAGED WITH RESPECT TO ITS COMPLETION OR MODIFICATION. AUTHENTICATION OF
THIS ELECTRONICALLY DRAFTED AIA DOCUMENT MAY BE MADE BY USING AIA DOCUMENT D401.

This document has been approved and endorsed by The Associated General
Contractors of America.

     8.1.4        The term "day" as used in the Contract Documents shall mean
     calendar day unless otherwise specifically defined.

     8.2          PROGRESS AND COMPLETION

     8.2.1        Time limits stated in the Contract Documents are of the
     essence of the Contract. By executing the Agreement the Contractor confirms
     that the Contract Time is a reasonable period for performing the Work.

     8.2.2        The Contractor shall not knowingly, except by agreement or
     instruction of the Owner in writing, prematurely commence operations on the
     site or elsewhere prior to the effective date of insurance required by
     Article 11 to be furnished by the Contractor and Owner. The date of
     commencement of the Work shall not be changed by the effective date of such
     insurance. Unless the date of commencement is established by the Contract
     Documents or a notice to proceed given by the Owner, the Contractor shall
     notify the Owner in writing not less than five days or other agreed period
     before commencing the Work to permit the timely filing of mortgages,
     mechanic's liens and other security interests.

     8.2.3        The Contractor shall proceed expeditiously with adequate
     forces and shall achieve Substantial Completion within the Contract Time.

     8.3          DELAYS AND EXTENSIONS OF TIME

     8.3.1

     8.3.1.1      If Substantial Completion of the Work is delayed (as
     demonstrated by the critical path of the Schedule) for any cause beyond the
     Contractor's control with the exercise of appropriate care and not
     attributable to any error, omission, neglect or delay of Contractor or
     Subcontractor, including, but not limited to, any act, neglect, delay or
     default of the Owner or Architect, or any employee or representative of
     either of them, or by any separate contractor employed by the Owner, or by
     any act of the City or other governmental authority not attributable to any
     error, omission, neglect or delay by the Contractor or any Subcontractor,
     or by any changes or additions to the Work, or by injunction or by
     government restrictions or regulations, or by any delay caused by common
     carrier on land or water not reasonably foreseeable by the Contractor, or
     by shortages of labor or materials not reasonably foreseeable by the
     Contractor, or by damage or delay which may arise through or by fire,
     explosion, lightning, earthquake, cyclone, inclement weather, flood,
     insurrection or war, or by the abandonment of the Work by strikes,
     boycotts, or by lockouts engaged thereon through no fault of the Contractor
     or any Subcontractor, or any other causes beyond the Contractor's control,
     then the Contractor shall not be held responsible or accountable for such
     delay and the Contractor shall have the right to submit a claim for
     additional time or additional direct costs, including General Condition
     Costs, or both, in accordance with the applicable provisions of General
     Conditions paragraph 4.3.

     8.3.2        Claims relating to time shall be made in accordance with
     applicable provisions of Paragraph 4.3.

(C) Copyright 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1967,
1970, 1976, 1987, 1997 by The American Institute of Architects. Fifteenth
Edition. Reproduction of the material herein or substantial quotation of its
provisions without written permission of the AIA violates the copyright laws of
the United States and will subject the violate to legal prosecution. WARNING:
Unlicensed photocopying violates U.S. copyright laws and will subject the
violator to legal prosecution. This document was electronically produced with
permission of the AIA and can be reproduced in accordance with your license
without violation until the date of expiration as noted below. User Document:
a-201 gc' s for neurocrine 9.12 -- 9/19/2003. AIA License Number 1106029, which
expires on 3/28/2004.

[AIA LOGO]

(C)1997 AIA(R)
AIA DOCUMENT A201 - 1997
GENERAL CONDITIONS OF THE CONTRACT FOR CONSTRUCTION

The American Institute of Architects
1735 New York Avenue, N.W.
Washington, D.C. 20006-5292

                                                                              35

<PAGE>

THIS DOCUMENT HAS IMPORTANT LEGAL CONSEQUENCES. CONSULTATION WITH AN ATTORNEY IS
ENCOURAGED WITH RESPECT TO ITS COMPLETION OR MODIFICATION. AUTHENTICATION OF
THIS ELECTRONICALLY DRAFTED AIA DOCUMENT MAY BE MADE BY USING AIA DOCUMENT D401.

This document has been approved and endorsed by The Associated General
Contractors of America.

     8.3.3        Extension of time provided for the completion of the Work and
     changes in the Contract sum as permitted by Change Order under the Contract
     Documents shall be the Contractor's sole remedy for delay (except for the
     Contractor's right to terminate the Agreement pursuant to the provisions of
     Article 14 hereof), unless the same shall have been caused by acts
     constituting intentional interference by the Owner with the Contractor's
     performance of the Work and such acts of the Owner continue after the
     Contractor's notice to the Owner of such interference. The Owner's exercise
     of any of its rights under the Agreement, including, without limitation,
     its rights under Article 7 of these General Conditions to implement Change
     Orders, regardless of the extent or number Of such Changes, or the Owner's
     exercise of any of its remedies of suspension of the Work, or requirement
     of correction or re-execution of any defective Work, shall not under any
     circumstances be construed as intentional interference with the
     Contractor's performance of the Work.

ARTICLE 9 PAYMENTS AND COMPLETION

     9.1          CONTRACT SUM

     9.1.1        The Contract Sum is stated in the Agreement and, including
     authorized adjustments, is the total amount payable by the Owner to the
     Contractor for performance of the Work under the Contract Documents.

     9.2          SCHEDULE OF VALUES

     9.2.1        Before the first Application for Payment, the Contractor shall
     submit to the Owner or Architect a schedule of values allocated to various
     portions of the Work, prepared in such form and supported by such data to
     substantiate its accuracy This schedule, unless objected to, shall be used
     as a basis for reviewing the Contractor's Applications for Payment.

     9.3          APPLICATIONS FOR PAYMENT

     9.3.1        At least ten days before the date established for each
     progress payment, the Contractor shall submit to the Owner an itemized
     Application for Payment for operations completed in accordance with the
     schedule of values.

     9.3.1.1      As provided in Subparagraph 7.3.8, such applications may
     include requests for payment on account of changes in the Work which have
     been properly authorized by Construction Change Directives, or by interim
     determinations of the Architect, but not yet included in Change Orders.

     9.3.1.2      Such applications may not include requests for payment for
     portions of the Work for which the Contractor does not intend to pay to a
     Subcontractor or material supplier, unless such Work has been performed by
     others whom the Contractor intends to pay.

     9.3.2        Unless otherwise provided in the Contract Documents, payments
     shall be made on account of materials and equipment delivered and suitably
     stored at the site for subsequent incorporation in the Work. If approved
     in advance by the Owner, payment may similarly be made for materials and
     equipment suitably stored off the site at a location agreed upon in
     writing. Payment for materials and equipment stored on or off the site
     shall be conditioned upon compliance by the Contractor with procedures
     satisfactory to the Owner to establish the Owner's title to such
     materials and equipment or otherwise protect the Owner's interest, and

(C) Copyright 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1967,
1970, 1976, 1987, 1997 by The American Institute of Architects. Fifteenth
Edition. Reproduction of the material herein or substantial quotation of its
provisions without written permission of the AIA violates the copyright laws of
the United States and will subject the violate to legal prosecution. WARNING:
Unlicensed photocopying violates U.S. copyright laws and will subject the
violator to legal prosecution. This document was electronically produced with
permission of the AIA and can be reproduced in accordance with your license
without violation until the date of expiration as noted below. User Document:
a-201 gc' s for neurocrine 9.12 -- 9/19/2003. AIA License Number 1106029, which
expires on 3/28/2004.

[AIA LOGO]

(C)1997 AIA(R)
AIA DOCUMENT A201 - 1997
GENERAL CONDITIONS OF THE CONTRACT FOR CONSTRUCTION

The American Institute of Architects
1735 New York Avenue, N.W.
Washington, D.C. 20006-5292

                                                                              36

<PAGE>

THIS DOCUMENT HAS IMPORTANT LEGAL CONSEQUENCES. CONSULTATION WITH AN ATTORNEY IS
ENCOURAGED WITH RESPECT TO ITS COMPLETION OR MODIFICATION. AUTHENTICATION OF
THIS ELECTRONICALLY DRAFTED AIA DOCUMENT MAY BE MADE BY USING AIA DOCUMENT D401.

This document has been approved and endorsed by The Associated General
Contractors of America.

     shall include the costs of applicable insurance, storage and transportation
     to the site for such materials and equipment stored off the site.

     9.3.2.1      Reference Attachment B - Stored Materials

     9.3.3        The Contractor warrants that title to all Work covered by an
     Application for Payment will pass to the Owner no later than the time of
     payment. The Contractor further warrants that upon submittal of an
     Application for Payment all Work for which Certificates for Payment have
     been previously issued and payments received from the Owner shall, to the
     best of the Contractor's knowledge, information and belief, be free and
     clear of liens, claims, security interests or encumbrances in favor of the
     Contractor, Subcontractors, material suppliers, or other persons or
     entities making a claim by reason of having provided labor, materials and
     equipment relating to the Work.

     9.4          CERTIFICATES FOR PAYMENT

     9.4.1        The Architect will, within seven days after receipt of the
     Contractor's Application for Payment, either issue to the Owner a
     Certificate for Payment, with a copy to the Contractor, for such amount as
     the Architect determines is properly due, or notify the Contractor and
     Owner in writing of the Architect's reasons for withholding certification
     in whole or in part as provided in Subparagraph 9.5.1.

     9.4.2        The issuance of a Certificate for Payment will constitute a
     representation by the Architect to the Owner, based on the Architect's
     evaluation of the Work and the data comprising the Application for Payment,
     that the Work has progressed to the point indicated and that, to the best
     of the Architect's knowledge, information and belief, the quality of the
     Work is in accordance with the Contract Documents. The foregoing
     representations are subject to an evaluation of the Work for conformance
     with the Contract Documents upon Substantial Completion, to results of
     subsequent tests and inspections, to correction of minor deviations from
     the Contract Documents prior to completion and to specific qualifications
     expressed by the Architect. The issuance of a Certificate for Payment will
     further constitute a representation that the Contractor is entitled to
     payment in the amount certified. However, the issuance of a Certificate for
     Payment will not be a representation that the Architect has (1) made
     exhaustive or continuous on-site inspections to check the quality or
     quantity of the Work, (2) reviewed construction means, methods, techniques,
     sequences or procedures, (3) reviewed copies of requisitions received from
     Subcontractors and material suppliers and other data requested by the Owner
     to substantiate the Contractor's right to payment, or (4) made examination
     to ascertain how or for what purpose the Contractor has used money
     previously paid on account of the Contract Sum.

     9.5          DECISIONS TO WITHHOLD CERTIFICATION

     9.5.1        The Architect may withhold a Certificate for Payment in whole
     or in part, but only to the extent reasonably necessary to protect the
     Owner, if in the Architect's opinion the representations to the Owner
     required by Subparagraph 9.4.2 cannot be made. If the Architect is unable
     to certify payment in the amount of the Application, the Architect will
     notify the Contractor and Owner as provided in Subparagraph 9.4.1. If the
     Contractor and Architect cannot agree on a revised amount, the Architect
     will promptly issue a Certificate for Payment for the amount for which the
     Architect is able to make such representations to the Owner. The Architect
     may also withhold a Certificate for Payment or, because of subsequently
     discovered evidence, may nullify the whole or a part of a Certificate for
     Payment previously issued, to such extent as may be necessary in the
     Architect's or Owner's opinion to protect the Owner from loss for which the
     Contractor is responsible, including loss resulting from acts and omissions
     described in Subparagraph 3.3.2, because of:

                 .1   defective Work not remedied;

                 .2    third party claims filed or reasonable evidence
                       indicating probable filing of such claims unless security
                       acceptable to the Owner is provided by the Contractor;

                 .3    failure of the Contractor to make payments properly to
                       Subcontractors or for labor, materials or equipment;

(C) Copyright 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1967,
1970, 1976, 1987, 1997 by The American Institute of Architects. Fifteenth
Edition. Reproduction of the material herein or substantial quotation of its
provisions without written permission of the AIA violates the copyright laws of
the United States and will subject the violate to legal prosecution. WARNING:
Unlicensed photocopying violates U.S. copyright laws and will subject the
violator to legal prosecution. This document was electronically produced with
permission of the AIA and can be reproduced in accordance with your license
without violation until the date of expiration as noted below. User Document:
a-201 gc' s for neurocrine 9.12 -- 9/19/2003. AIA License Number 1106029, which
expires on 3/28/2004.

[AIA LOGO]

(C)1997 AIA(R)
AIA DOCUMENT A201 - 1997
GENERAL CONDITIONS OF THE CONTRACT FOR CONSTRUCTION

The American Institute of Architects
1735 New York Avenue, N.W.
Washington, D.C. 20006-5292

                                                                              37

<PAGE>

THIS DOCUMENT HAS IMPORTANT LEGAL CONSEQUENCES. CONSULTATION WITH AN ATTORNEY IS
ENCOURAGED WITH RESPECT TO ITS COMPLETION OR MODIFICATION. AUTHENTICATION OF
THIS ELECTRONICALLY DRAFTED AIA DOCUMENT MAY BE MADE BY USING AIA DOCUMENT D401.

This document has been approved and endorsed by The Associated General
Contractors of America.

                  4.   reasonable evidence that the Work cannot be completed for
                       the unpaid balance of the Contract Sum;

                  5.   damage to the Owner or another contractor;

                  6.   reasonable evidence that the Work will not be completed
                       within the Contract Time, and that the unpaid balance
                       would not be adequate to cover actual or liquidated
                       damages for the anticipated delay; or

                  7.   persistent failure to carry out the Work in accordance
                       with the Contract Documents.

     9.5.2        When the above reasons for withholding certification are
     removed, certification will be made for amounts previously withheld.

     9.6          PROGRESS PAYMENTS

     9.6.1        After the Architect has issued a Certificate for Payment, the
     Owner shall make payment in the manner and within the time provided in the
     Contract Documents, and shall so notify the Architect. If any condition of
     default under the Contract Documents (including, but not limited to, those
     defaults set forth in Clauses 9.5.1.1 through 9.5.1.7) remains uncured as
     of the date of any Certificate of Payment, the Owner may withhold from the
     payment on that Certificate of Payment the amount the Owner reasonably
     believes is appropriate to protect the Owner from risk that arrises from
     such default until the default condition is cured. The Owner shall not be
     deemed in default of the Contract by reason of withholding payment while
     any of such defaults remain uncured.

     9.6.2        The Contractor shall promptly pay each Subcontractor, upon
     receipt of payment from the Owner, out of the amount paid to the Contractor
     on account of such Subcontractor's portion of the Work, the amount to which
     said Subcontractor is entitled, reflecting percentages actually retained
     from payments to the Contractor on account of such Subcontractor's portion
     of the Work. The Contractor shall, by appropriate agreement with each
     Subcontractor, require each Subcontractor to make payments to
     Sub-subcontractors in a similar manner.

     9.6.3

     9.6.4        Neither the Owner nor Architect shall have an obligation to
     pay or to see to the payment of money to a Subcontractor except as may
     otherwise be required by law.

     9.6.5        Payment to material suppliers shall be treated in a manner
     similar to that provided in Subparagraphs 9.6.2, 9.6.3 and 9.6.4.

     9.6.6        A Certificate for Payment, a progress payment, or partial or
     entire use or occupancy of the Project by the Owner shall not constitute
     acceptance of Work not in accordance with the Contract Documents.

     9.6.7        Unless the Contractor provides the Owner with a payment bond
     in the full penal sum of the Contract Sum, payments received by the
     Contractor for Work properly performed by Subcontractors and suppliers
     shall be held by the Contractor for those Subcontractors or suppliers who
     performed Work or furnished materials, or both, under contract with the
     Contractor for which payment was made by the Owner. Nothing contained
     herein shall require money to be placed in a separate account and not
     commingled with money of the Contractor, shall create any fiduciary
     liability or tort liability on the part of the Contractor for breach of

(C) Copyright 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1967,
1970, 1976, 1987, 1997 by The American Institute of Architects. Fifteenth
Edition. Reproduction of the material herein or substantial quotation of its
provisions without written permission of the AIA violates the copyright laws of
the United States and will subject the violate to legal prosecution. WARNING:
Unlicensed photocopying violates U.S. copyright laws and will subject the
violator to legal prosecution. This document was electronically produced with
permission of the AIA and can be reproduced in accordance with your license
without violation until the date of expiration as noted below. User Document:
a-201 gc' s for neurocrine 9.12 -- 9/19/2003. AIA License Number 1106029, which
expires on 3/28/2004.

[AIA LOGO]

(C)1997 AIA(R)
AIA DOCUMENT A201 - 1997
GENERAL CONDITIONS OF THE CONTRACT FOR CONSTRUCTION

The American Institute of Architects
1735 New York Avenue, N.W.
Washington, D.C. 20006-5292

                                                                              38

<PAGE>

THIS DOCUMENT HAS IMPORTANT LEGAL CONSEQUENCES. CONSULTATION WITH AN ATTORNEY IS
ENCOURAGED WITH RESPECT TO ITS COMPLETION OR MODIFICATION. AUTHENTICATION OF
THIS ELECTRONICALLY DRAFTED AIA DOCUMENT MAY BE MADE BY USING AIA DOCUMENT D401.

This document has been approved and endorsed by The Associated General
Contractors of America.

     trust or shall entitle any person or entity to an award of punitive damages
     against the Contractor for breach of the requirements of this provision.

     9.7          FAILURE OF PAYMENT

     9.7.1        If the Architect does not issue a Certificate for Payment,
     through no fault of the Contractor, within seven days after receipt of the
     Contractor's Application for Payment, or if the Owner does not for reasons
     other than a default on the Contract, including, but not limited to those
     defaults set forth in Clauses 9.5.1.1 through 9.5.1.7, pay the Contractor
     within seven days after the date established in the Contract Documents the
     amount certified by the Architect or awarded by arbitration, then the
     Contractor may, upon seven additional days' written notice to the Owner,
     stop the Work until payment of the amount owing has been received. The
     Contract Time shall be extended appropriately and the Contract Sum shall be
     increased by the amount of the Contractor's reasonable costs of shut-down,
     delay and start-up, plus interest as provided for in the Contract
     Documents.

     9.8          SUBSTANTIAL COMPLETION

     9.8.1        The work shall be considered "substantial complete" at such
     time as:

                 .1    It may be occupied by Owner and used for its intended
                       purpose, without any material impairment or interference
                       in Owner's use thereof for its designated purposes
                       resulting from the portions of the Work which are not
                       fully completed or from Contractor's performance of such
                       work as is necessary to complete the Work;

                 .2    A Certificate of Occupancy (or its equivalent under
                       applicable laws) and all other necessary governmental
                       approvals have been issued by the appropriate
                       governmental authority for the occupancy and use of the
                       completed work for its intended purposes;

                 .3    Mechanical completion has been attained and the Work may
                       be occupied by Owner and used for its intended purpose,
                       including the start-up and commissioning of all equipment
                       and mechanical, electrical and process systems; and

                 .4    A comprehensive list of items to be completed or
                       corrected (the "Punch List") has been prepared by Owner
                       or Architect and submitted, to Contractor; provided,
                       however, that Owner's preparation of any such Punch List
                       shall not prevent it from adding additional items to the
                       Punch List or modifying existing Punch List items as
                       Owner further inspects, tests, or attempts to operate its
                       business at the Site. The "Punch List" shall be completed
                       within ten days after request for same by Contractor.

     9.8.2        When the Contractor considers that the Work, or a portion
     thereof which the Owner agrees to accept separately, is substantially
     complete, the Contractor shall prepare and submit to the Owner and
     Architect a comprehensive list of items to be completed or corrected prior
     to final payment. Failure to include an item on such list does not alter
     the responsibility of the Contractor to complete all Work IN accordance
     with the Contract Documents.

     9.8.3        Upon receipt of the Contractor's list, the Architect will make
     an inspection to determine whether the Work or designated portion thereof
     is substantially complete. If the Architect's inspection discloses any
     item, whether or not included on the Contractor's list, which is not
     sufficiently complete in accordance with the Contract Documents so that the
     Owner can occupy or utilize the Work or designated portion thereof for its
     intended use, the Contractor shall, before issuance of the Certificate of
     Substantial Completion, complete or

(C) Copyright 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1967,
1970, 1976, 1987, 1997 by The American Institute of Architects. Fifteenth
Edition. Reproduction of the material herein or substantial quotation of its
provisions without written permission of the AIA violates the copyright laws of
the United States and will subject the violate to legal prosecution. WARNING:
Unlicensed photocopying violates U.S. copyright laws and will subject the
violator to legal prosecution. This document was electronically produced with
permission of the AIA and can be reproduced in accordance with your license
without violation until the date of expiration as noted below, expiration as
noted below, expiration as noted below. User Document: a-201 gc' s for
neurocrine 9.12 -- 9/19/2003. AIA License Number 1106029, which expires on
3/28/2004.

[AIA LOGO]

(C)1997 AIA(R)
AIA DOCUMENT A201 - 1997
GENERAL CONDITIONS OF THE CONTRACT FOR CONSTRUCTION

The American Institute of Architects
1735 New York Avenue, N.W.
Washington, D.C. 20006-5292

                                                                              39

<PAGE>

THIS DOCUMENT HAS IMPORTANT LEGAL CONSEQUENCES. CONSULTATION WITH AN ATTORNEY IS
ENCOURAGED WITH RESPECT TO ITS COMPLETION OR MODIFICATION. AUTHENTICATION OF
THIS ELECTRONICALLY DRAFTED AIA DOCUMENT MAY BE MADE BY USING AIA DOCUMENT D401.

This document has been approved and endorsed by The Associated General
Contractors of America.

     correct such item upon notification by the Owner or Architect. In such
     case, the Contractor shall then submit a request for another inspection by
     the Owner or Architect to determine Substantial Completion.

     9.8.4        When the Work or designated portion thereof is substantially
     complete, the Owner or Architect will prepare a Certificate of Substantial
     Completion which shall establish the date of Substantial Completion, shall
     establish responsibilities of the Owner and Contractor for security,
     maintenance, heat, utilities, damage to the Work and insurance, and shall
     fix the time within which the Contractor shall finish all items on the list
     accompanying the Certificate. Warranties required by the Contract Documents
     shall commence on the date of Substantial Completion of the Work or
     designated portion thereof unless otherwise provided in the Certificate of
     Substantial Completion.

     9.8.5        The Certificate of Substantial Completion shall be submitted
     to the Owner and Contractor for their written acceptance of
     responsibilities assigned to them in such Certificate. Upon such acceptance
     and consent of surety, if any, the Owner shall make payment of retainage
     applying to such Work or designated portion thereof. Such payment shall be
     adjusted for Work that is incomplete or not in accordance with the
     requirements of the Contract Documents.

     9.9          PARTIAL OCCUPANCY OR USE

     9.9.1        The Owner may occupy or use any completed or partially
     completed portion of the Work at any stage when such portion is designated
     by separate agreement with the Contractor, provided such occupancy or use
     is consented to by the insurer as required under Clause 11.4.1.5 and
     authorized by public authorities having jurisdiction over the Work. Such
     partial occupancy or use may commence whether or not the portion is
     substantially complete, provided the Owner and Contractor have accepted in
     writing the responsibilities assigned to each of them for payments,
     retainage, if any, security, maintenance, heat, utilities, damage to the
     Work and insurance, and have agreed in writing concerning the period for
     correction of the Work and commencement of warranties required by the
     Contract Documents. When the Contractor considers a portion substantially
     complete, the Contractor shall prepare and submit a list to the_ Owner or
     Architect as provided under Subparagraph 9.8.2. Consent of the Contractor
     to partial occupancy or use shall not be unreasonably withheld. The stage
     of the progress of the Work shall be determined by written agreement
     between the Owner and Contractor or, if no agreement is reached, by
     decision of the Architect.

     9.9.2        Immediately prior to such partial occupancy or use, the Owner,
     Contractor and Architect shall jointly inspect the area to be occupied or
     portion of the Work to be used in order to determine and record the
     condition of the Work.

     9.9.3        Unless otherwise agreed upon, partial occupancy or use of a
     portion or portions of the Work shall not constitute acceptance of Work not
     complying with the requirements of the Contract Documents.

     9.10         FINAL COMPLETION AND FINAL PAYMENT

     9.10.1       Contractor shall notify Owner in writing when Contractor
     considers all Work, including, but not limited to, the Punch List, to be
     complete and ready for Owner's acceptance. Owner (and, if it so elects, its
     consultants, architects, and engineers) shall conduct such final
     inspections and tests as necessary to satisfy Owner that the ' Work
     conforms to all of the requirements of the Contract Documents. If, in
     Owner's opinion, the Work, or any part thereof, fails to conform to the
     requirements of the Contract Documents. Owner shall notify Contractor in
     writing, adding any such non - conforming Work to the Punch List.
     Immediately upon notification, Contractor must

(C) Copyright 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1967,
1970, 1976, 1987, 1997 by The American Institute of Architects. Fifteenth
Edition. Reproduction of the material herein or substantial quotation of its
provisions without written permission of the AIA violates the copyright laws of
the United States and will subject the violate to legal prosecution. WARNING:
Unlicensed photocopying violates U.S. copyright laws and will subject the
violator to legal prosecution. This document was electronically produced with
permission of the AIA and can be reproduced in accordance with your license
without violation until the date of expiration as noted below, expiration as
noted below, expiration as noted below. User Document: a-201 gc' s for
neurocrine 9.12 -- 9/19/2003. AIA License Number 1106029, which expires on
3/28/2004.

[AIA LOGO]

(C)1997 AIA(R)
AIA DOCUMENT A201 - 1997
GENERAL CONDITIONS OF THE CONTRACT FOR CONSTRUCTION

The American Institute of Architects
1735 New York Avenue, N.W.
Washington, D.C. 20006-5292

                                                                              40
<PAGE>

THIS DOCUMENT HAS IMPORTANT LEGAL CONSEQUENCES. CONSULTATION WITH AN ATTORNEY IS
ENCOURAGED WITH RESPECT TO ITS COMPLETION OR MODIFICATION. AUTHENTICATION OF
THIS ELECTRONICALLY DRAFTED AIA DOCUMENT MAY BE MADE BY USING AIA DOCUMENT D401.

This document has been approved and endorsed by The Associated General
Contractors of America.

    take such corrective action necessary to bring the Work, or any part
    thereof, into conformance with the Contract Documents. Failure by Contractor
    to do so shall give Owner the right to terminate this Agreement for default
    under the provisions of this Agreement.

    9.10.2. The Work will be considered to have achieved "Final Completion" at
    such time as:

    .1 All items on the Punch List have been completed to the satisfaction of
    Owner and Contractor is in possession of Owner's written notice of
    acceptance of the Work, which written notice shall be deemed to have been
    given if Owner fails to respond to Contractor's written notification that
    all Punch List items have been completed within ten (10) days of Owner's
    receipt of such notification;"

    .2 The Work has been completed to such an extent that a proper "Notice of
    Completion" (or any similar document under applicable law, custom, and
    practice sufficient to establish an outside date for the filing of any
    mechanic's or materialmen's liens against the Site) may be filed with the
    appropriate governmental authority:

    .3 All "as-built" Drawings, warranties, guarantees, training, operations,
    maintenance and repair manuals, spare parts lists and suppliers, "as-built"
    material lists, spare materials and any other submissions required by the
    Contract Documents have been received and approved by Owner:

    .4 All quality assurance documentation with respect to commissioning and
    testing of the completed Work has been provided to and reviewed by Owner,
    and the quality assurance issues have been resolved to the satisfaction of
    Owner:

    .5 This Agreement has been fully performed by Contractor, except for
    Contractor's responsibility to correct defective or nonconforming Work of
    which Owner has not yet notified Contractor of Contractor's obligation to
    correct the same. All equipment and facilities necessary for the full, safe
    and continuously reliable operation of the completed Work have been properly
    constructed, installed, insulated and protected where required for such
    operation and correctly adjusted: and

    .6 A final progress payment request and a final accounting for the Contract
    Sum and all required supporting documentation have been submitted by
    Contractor and reviewed by Owner's accountants, and all other conditions to
    final payment set forth in the Contract Documents have been satisfied.

    9.10.3 Upon receipt of written notice that the Work is ready for final
    inspection and acceptance and upon receipt of a final Application for
    Payment, the Owner or Architect will promptly make such inspection and,
    when the Architect finds the Work acceptable under the Contract Documents
    and the Contract fully performed, the Architect will promptly issue a final
    Certificate for Payment stating that to the best of the Architect's
    knowledge, information and belief, and on the basis of the Architect's
    on-site visits and inspections, the Work has been completed in accordance
    with terms and conditions of the Contract Documents and that the entire
    balance found to be due the Contractor and noted in the final Certificate is
    due and payable. The Architect's final Certificate for Payment will
    constitute a further representation that conditions listed in Subparagraph
    9.10.2 as precedent to the Contractor's being entitled to final payment have
    been fulfilled.

(C) Copyright 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1967,
1970, 1976,1987, 1997 BY The American Institute of Architects, Fifteenth
Edition. Reproduction of the material herein or substantial quotation of its
provisions without written permission OF the AIA violates the copyright laws of
the United States and will subject the violate to legal prosecution. WARNING:
Unlicensed photocopying violates U.S. copyright laws and will subject the
violator to legal prosecution. This document was electronically produced with
permission of the AIA and can be reproduced in accordance with your license
without violation until the date of expiration as noted below. User Document:
a-201 gc' s for neurocrine 9.12 -- 9/19/2003. AIA License Number 1106029, which
expires on 3/28/2004.

[AIA LOGO]

(C)1997 AIA(R)
AIA DOCUMENT A201 - 1997
GENERAL CONDITIONS OF THE CONTRACT FOR CONSTRUCTION

The American Institute of Architects
1735 New York Avenue, N.W.
Washington, D.C. 20006-5292

                                                                              41

<PAGE>

THIS DOCUMENT HAS IMPORTANT LEGAL CONSEQUENCES. CONSULTATION WITH AN ATTORNEY IS
ENCOURAGED WITH RESPECT TO ITS COMPLETION OR MODIFICATION. AUTHENTICATION OF
THIS ELECTRONICALLY DRAFTED AIA DOCUMENT MAY BE MADE BY USING AIA DOCUMENT D401.

This document has been approved and endorsed by The Associated General
Contractors of America.

    9.10.4 Neither final payment nor any remaining retained percentage shall
    become due until the Contractor submits to the Owner (1) an affidavit that
    payrolls, bills for materials and equipment, and other indebtedness
    connected with the Work for which the Owner or the Owner's property might be
    responsible or encumbered (less amounts withheld by Owner) have been paid or
    otherwise satisfied, (2) a certificate evidencing that insurance required by
    the Contract Documents to remain in force after final payment is currently
    in effect and will not be canceled or allowed to expire until at least 30
    days' prior written notice has been given to the Owner, (3) a written
    statement that the Contractor knows of no substantial reason that the
    insurance will not be renewable to cover the period required by the Contract
    Documents, (4) consent of surety, if any, to final payment and (5), if
    required by the Owner, other data establishing payment or satisfaction of
    obligations, such as receipts, releases and waivers of liens, claims,
    security interests or encumbrances arising out of the Contract, to the
    extent and in such form as may be designated by the Owner. If a
    Subcontractor refuses to furnish a release or waiver required by Owner, and
    has not recorded a claim of mechanic's lien against the Project. Contractor
    may furnish a bond satisfactory to Owner to indemnify Owner against such
    unrecorded claim of Subcontractor. If a Subcontractor has recorded a claim
    of mechanic's lien against the project and refuses to furnish a release or
    wavier required by Owner, Contractor may furnish a bond under the provisions
    of California Code 3143 to release the Project from the effect of such lien.
    In either event, once Contractor furnishes the bond no payments shall be
    withheld from Contractor as a result of the Subcontractor's claim or lien.

    9.10.5 If, after Substantial Completion of the Work, final completion
    thereof is materially delayed through no fault of the Contractor or by
    issuance of Change Orders affecting final completion, the Owner shall, upon
    application by the Contractor and without terminating the Contract, make
    payment of the balance due for that portion of the Work fully completed and
    accepted. If the remaining balance for Work not fully completed or corrected
    is less than retainage stipulated in the Contract Documents, and if bonds
    have been furnished, the written consent of surety to payment of the balance
    due for that portion of the Work fully completed and accepted shall be
    submitted by the Contractor to the Owner or Architect prior to certification
    of such payment. Such payment shall be made under terms and conditions
    governing final payment, except that it shall not constitute a waiver of
    claims.

    9.10.6

    9.10.7 Acceptance of final payment by the Contractor, a Subcontractor or
    material supplier shall constitute a waiver of claims by that payee except
    those previously made in writing and identified by that payee as unsettled
    at the time of final Application for Payment.

ARTICLE 10 PROTECTION OF PERSONS AND PROPERTY

    10.1 SAFETY PRECAUTIONS AND PROGRAMS

(C) Copyright 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1967,
1970, 1976, 1987, 1997 by The American Institute of Architects. Fifteenth
Edition. Reproduction of the material herein or substantial quotation of its
provisions without written permission of the AIA violates the copyright laws of
the United States and will subject the violate to legal prosecution. WARNING:
Unlicensed photocopying violates U.S. copyright laws and will subject the
violator to legal prosecution. This document was electronically produced with
permission of the AIA and can be reproduced in accordance with your license
without violation until the date of expiration as noted below . User Document:
a-201 gc' s for neurocrine 9.12 - 9/19/2003. AIA License Number 1106029, which
expires on 3/28/2004.

[AIA LOGO]

(C)1997 AIA(R)
AIA DOCUMENT A201 - 1997
GENERAL CONDITIONS OF THE CONTRACT FOR CONSTRUCTION

The American Institute of Architects
1735 New York Avenue, N.W.
Washington, D.C. 20006-5292

                                                                              42

<PAGE>

THIS DOCUMENT HAS IMPORTANT LEGAL CONSEQUENCES. CONSULTATION WITH AN ATTORNEY IS
ENCOURAGED WITH RESPECT TO ITS COMPLETION OR MODIFICATION. AUTHENTICATION OF
THIS ELECTRONICALLY DRAFTED AIA DOCUMENT MAY BE MADE BY USING AIA DOCUMENT D401.

This document has been approved and endorsed by The Associated General
Contractors of America.

10.1.1 The Contractor shall be responsible for initiating, maintaining and
supervising all safety precautions and programs in connection with the
performance of the Contract. Contractor shall initiate and maintain such
permits and programs as may be necessary to comply with requirements set forth
by the Occupational Safety and Health Administration (OSHA) and any other
local, state, commonwealth and federal regulations. A Copy of all such permits
shall be provided to Owner prior to commencement of Work at the Site. If OSHA
permits are not required to perform Work, a letter shall be submitted to Owner
prior to commencement of Work at the Site, stating that no permits are required.

10.2 SAFETY OF PERSONS AND PROPERTY

10.2.1 The Contractor shall take reasonable precautions for safety of, and shall
provide reasonable protection to prevent damage, injury or loss to:

        .1  employees on the Work and other persons who may be affected thereby;

        .2  the Work and materials and equipment to be incorporated therein,
            whether in storage on or off the site, under care, custody or
            control of the Contractor or the Contractor's Subcontractors or
            Sub-subcontractors; and

        .3  other property at the site or adjacent thereto, such as trees,
            shrubs, lawns, walks, pavements, roadways, structures and utilities
            not designated for removal, relocation or replacement in the course
            of construction.

    10.2.2 The Contractor shall give notices and comply with applicable laws,
    ordinances, rules, regulations and lawful orders of public authorities
    bearing on safety of persons or property or their protection from damage,
    injury or loss.

    10.2.3 The Contractor shall erect and maintain, as required by existing
    conditions and performance of the Contract, reasonable safeguards for safety
    and protection, including posting danger signs and other warnings against
    hazards, promulgating safety regulations and notifying owners and users of
    adjacent sites and utilities.

    10.2.4 When use or storage of explosives or other hazardous materials or
    equipment or unusual methods are necessary for execution of the Work, the
    Contractor shall exercise utmost care and carry on such activities under
    supervision of properly qualified personnel.

    10.2.5 The Contractor shall promptly remedy damage and loss (other than
    damage or loss insured under property insurance required by the Contract
    Documents) to property referred to in Clauses 10.2.1.2 and 10.2.1.3 caused
    in whole or in part by the Contractor, a Subcontractor, a Sub-subcontractor,
    or anyone directly or indirectly employed by any of them, or by anyone for
    whose acts they may be liable and for which the Contractor is responsible
    under Clauses 10.2.1.2 and 10.2.1.3, except damage or loss attributable to
    acts or omissions of the Owner or Architect or anyone directly or indirectly
    employed by either of them, or by anyone for whose acts either of them may
    be liable, and not attributable to the fault or negligence of the
    Contractor. The foregoing obligations of the Contractor are in addition to
    the Contractor's obligations under Paragraph 3.18.

    10.2.6 The Contractor shall designate a responsible member of the
    Contractor's organization at the site whose duty shall be the prevention of
    accidents. This person shall be the Contractor's superintendent unless
    otherwise designated by the Contractor in writing to the Owner and
    Architect.

    10.2.7 The Contractor shall not load or permit any part of the construction
    or site to be loaded so as to endanger its safety.

(C) Copyright 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1967,
1970, 1976, 1987, 1997 by The American Institute of Architects. Fifteenth
Edition, Reproduction of the material herein or substantial quotation of its
provisions without written permission of the AIA violates the copyright laws of
the United States and will subject the violate to legal prosecution. WARNING:
Unlicensed photocopying violates U.S. copyright laws and will subject the
violator to legal prosecution. This document was electronically produced with
permission of the AIA and can be reproduced in accordance with your license
without violation until the date of expiration as noted below. User Document:
a-201 gc' s for neurocrine 9.12 -- 9/19/2003. AIA License Number 1106029, which
expires on 3/28/2004.

[AIA LOGO]

(C)1997 AIA(R)
AIA DOCUMENT A201 - 1997
GENERAL CONDITIONS OF THE CONTRACT FOR CONSTRUCTION

The American Institute of Architects
1735 New York Avenue, N.W.
Washington, D.C. 20006-5292

                                                                              43

<PAGE>

THIS DOCUMENT HAS IMPORTANT LEGAL CONSEQUENCES. CONSULTATION WITH AN ATTORNEY IS
ENCOURAGED WITH RESPECT TO ITS COMPLETION OR MODIFICATION. AUTHENTICATION OF
THIS ELECTRONICALLY DRAFTED AIA DOCUMENT MAY BE MADE BY USING AIA DOCUMENT D401.

This document has been approved and endorsed by The Associated General
Contractors of America.

    10.3   HAZARDOUS MATERIALS

    10.3.1 If reasonable precautions will be inadequate to prevent foreseeable
    bodily injury or death to persons resulting from a material or substance,
    including but not limited to asbestos or polychlorinated biphenyl (PCB),
    encountered on the site by the Contractor, the Contractor shall, upon
    recognizing the condition, immediately stop Work in the affected area and
    report the condition to the Owner and Architect in writing.

    10.3.2 The Owner shall obtain the services of a licensed laboratory to
    verify the presence or absence of the material or substance encountered on
    the Site and reasonably reported to Owner by the Contractor and, in the
    event such material or substance is found to be present, to verify that it
    has been rendered harmless. Unless otherwise required by the Contract
    Documents, the Owner shall furnish in writing to the Contractor and
    Architect the names and qualifications of persons or entities who are to
    perform tests verifying the presence or absence of such material or
    substance or who are to perform the task of removal or safe containment of
    such material or substance. The Contractor and the Architect will promptly
    reply to the Owner in writing stating whether or not either has reasonable
    objection to the persons or entities proposed by the Owner. If either the
    Contractor or Architect has an objection to a person or entity proposed by
    the Owner, the Owner shall propose another to whom the Contractor and the
    Architect have no reasonable objection. When the material or substance has
    been rendered harmless, Work in the affected area shall resume upon written
    agreement of the Owner and Contractor. The Contract Time shall be extended
    appropriately and the Contract Sum shall be increased in the amount of the
    Contractor's reasonable additional costs of shut-down, delay and start-up,
    which adjustments shall be accomplished as provided in Article 7.

    10.3.3 To the fullest extent permitted by law, the Owner shall indemnify and
    hold harmless the Contractor, Subcontractors, Architect, Architect's
    consultants and agents and employees of any of them from and against claims,
    damages, losses and expenses, including but not limited to attorneys' fees,
    arising out of or resulting from performance of the Work in the affected
    area if in fact the material or substance presents the risk of bodily injury
    or death as described in Subparagraph 10.3.1 and has not been rendered
    harmless, provided that such claim, damage, loss or expense is attributable
    to bodily injury, sickness, disease or death, or to injury to or destruction
    of tangible property (other than the Work itself) and provided that such
    damage, loss or expense is not due to the sole negligence of a party seeking
    indemnity.

    10.4   The Owner shall not be responsible under Paragraph 10.3 for materials
    and substances brought to the site by the Contractor unless such materials
    or substances were required by the Contract Documents.

10.5 If, without negligence on the part of the Contractor, the Contractor is
held liable for the cost of remediation of a hazardous material or substance
solely by reason of performing Work as required by the Contract Documents, the
Owner shall indemnify the Contractor for all cost and expense thereby reasonably
incurred by Contractor.

    10.6   EMERGENCIES

    10.6.1 In an emergency affecting safety of persons or properly, the
    Contractor shall act, at the Contractor's discretion, to prevent threatened
    damage, injury or loss. Additional compensation or extension of time claimed
    by the Contractor on account of an emergency shall be determined as provided
    in Paragraph 4.3 and Article 7.

ARTICLE 11 INSURANCE AND BONDS

    11.1   CONTRACTOR'S LIABILITY INSURANCE

    11.1.1 The Contractor shall purchase from and maintain in a company or
    companies lawfully authorized to do business in the jurisdiction in which
    the Project is located such insurance as will protect the Contractor from
    claims set forth in Attachment A -

(C)Copyright 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1967,
1970, 1976,1987, 1997 by The American Institute of Architects. Fifteenth
Edition. Reproduction of the material herein or substantial quotation of its
provisions without written permission of the AIA violates the copyright laws of
the United States and will subject the violate to legal prosecution. WARNING:
Unlicensed photocopying violates U.S. copyright laws and will subject the
violator to legal prosecution. This document was electronically produced with
permission of the AIA and can be reproduced in accordance with your license
without violation until the date of expiration as noted below. User Document:
a-201 gc' s for neurocrine 9.12 -- 9/19/2003. AIA License Number 1106029, which
expires on 3/28/2004.

[AIA LOGO]

(C)1997 AIA(R)
AIA DOCUMENT A201 - 1997
GENERAL CONDITIONS OF THE CONTRACT FOR CONSTRUCTION

The American Institute of Architects
1735 New York Avenue, N.W.
Washington, D.C. 20006-5292

                                                                              44

<PAGE>

THIS DOCUMENT HAS IMPORTANT LEGAL CONSEQUENCES. CONSULTATION WITH AN ATTORNEY IS
ENCOURAGED WITH RESPECT TO ITS COMPLETION OR MODIFICATION. AUTHENTICATION OF
THIS ELECTRONICALLY DRAFTED AIA DOCUMENT MAY BE MADE BY USING AIA DOCUMENT D401.

This document has been approved and endorsed by The Associated General
Contractors of America.

    Contractors Insurance which may arise out of or result from the Contractor's
    operations under the Contract and for which the Contractor may be legally
    liable, whether such operations be by the Contractor or by a Subcontractor
    or by anyone directly or indirectly employed by any of them, or by anyone
    for whose acts any of them may be liable:

    11.1.2

    The Contractor shall, for the protection and benefit of the Owner, the
    Indemnitees and the Contractor and as part of Contractor's efforts to
    satisfy the obligations set forth in Paragraph 11.1.1, purchase and maintain
    in full force and effect, at all times, during the performance of the Work
    under the Agreement, or for such duration as required, policies of issuance
    in the form and substance reasonably acceptable to the Owner, which afford
    the coverages set forth in Attachment "A" to the Agreement. All such
    insurance shall be written on an occurrence basis and shall be written by a
    carrier or carriers acceptable to owner and meeting the general requirements
    set forth in Attachment "A" to the Agreement.

    11.1.3

    Certificates of insurance evidencing the required coverages, with limits not
    less than those specified in Attachment "A" to the Agreement, shall be
    delivered to the Owner in accordance with the requirements set forth in
    Attachment "A" to the Agreement. The coverage afforded pursuant to this
    Article 11.1 shall be primary to any valid and collectible insurance carried
    separately by the Owner or any of the Indemnitees.

(C) Copyright 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1967,
1970, 1976, 1987, 1997 by The American Institute of Architects. Fifteenth
Edition. Reproduction of the material herein or substantial quotation of its
provisions without written permission of the AIA violates the copyright laws of
the United States and will subject the violate to legal prosecution. WARNING:
Unlicensed photocopying violates U.S. copyright laws and will subject the
violator to legal prosecution. This document was electronically produced with
permission of the AIA and can be reproduced in accordance with your license
without violation until the date of expiration as noted below. User Document:
a-201 gc' s for neurocrine 9.12 -- 9/19/2003. AIA License Number 1106029, which
expires on 3/28/2004.

[AIA LOGO]

(C)1997 AIA(R)
AIA DOCUMENT A201 - 1997
GENERAL CONDITIONS OF THE CONTRACT FOR CONSTRUCTION

The American Institute of Architects
1735 New York Avenue, N.W.
Washington, D.C. 20006-5292

                                                                              45

<PAGE>

THIS DOCUMENT HAS IMPORTANT LEGAL CONSEQUENCES. CONSULTATION WITH AN ATTORNEY IS
ENCOURAGED WITH RESPECT TO ITS COMPLETION OR MODIFICATION. AUTHENTICATION OF
THIS ELECTRONICALLY DRAFTED AIA DOCUMENT MAY BE MADE BY USING AIA DOCUMENT D401.

This document has been approved and endorsed by The Associated General
Contractors of America.

    11.1.4 If the Contractor fails to purchase and maintain, or require to be
    purchased and maintained, any insurance required under this Paragraph 11.1,
    Owner may, but shall not be obligated to upon five (5) days' written notice
    to the Contractor, purchase such insurance on behalf of the Contractor and
    shall be entitled to reimbursement for such expense from the Contractor,
    including without limitation withholding the cost of such insurance from any
    amount due the Contractor under the Agreement.

    11.1.5 The Contractor's insurance requirements set forth in Attachment "A"
    to the Agreement are incorporated into and shall supplement the insurance
    obligations of this Article 11 and, to the extent that any of the insurance
    requirements of Article 11 are in conflict therewith, the requirements in
    Attachment "A" shall supersede the requirements set forth in this Article
    11.

    11.2   OWNER'S LIABILITY INSURANCE

    11.2.1 The Owner shall be responsible for purchasing and maintaining the
    Owner's usual liability insurance.

    11.3   PROJECT MANAGEMENT PROTECTIVE LIABILITY INSURANCE

    11.3.1 Optionally, the Owner will not require the Contractor to purchase and
    maintain Project Management Protective Liability insurance from the
    Contractor's usual sources as primary coverage for the Owner's, Contractor's
    and Architect's vicarious liability for construction operations under the
    Contract. Unless otherwise required by the Contract Documents, the Owner
    shall reimburse the Contractor by increasing the Contract Sum to pay the
    cost of purchasing and maintaining such optional insurance coverage, and the
    Contractor shall not be responsible for purchasing any other liability
    insurance on behalf of the Owner. The minimum limits of liability purchased
    with such coverage shall be equal to the aggregate of the limits required
    for Contractor's Liability Insurance under Clauses 11.1.1.2 through
    11.1.1.5.

    11.3.2 To the extent damages are covered by Project Management Protective
    Liability insurance, the Owner, Contractor and Architect waive all rights
    against each other for damages, except such rights as they may have to the
    proceeds of such insurance. The policy shall provide for such waivers of
    subrogation by endorsement or otherwise.

    11.3.3 The Owner shall not require the Contractor to include the Owner,
    Architect or other persons or entities as additional insureds on the
    Contractor's Liability Insurance coverage under Paragraph 11.1.

    11.4   PROPERTY INSURANCE

    11.4.1 The Owner shall purchase and maintain, in a company or companies
    lawfully authorized to do business in the jurisdiction in which the Project
    is located, property insurance written on a builder's risk "all-risk" or
    equivalent policy form in the amount of the initial Contract Sum, plus value
    of subsequent Contract modifications and cost of materials supplied or
    installed by others, comprising total value for the entire Project at the
    site on a replacement cost basis without optional deductibles. Such property
    insurance shall be maintained, unless otherwise provided in the Contract
    Documents or otherwise agreed in writing by all persons and entities who are
    beneficiaries of such insurance, until final payment has been made as
    provided in Paragraph 9.10 or until no person or entity other than the Owner
    has an insurable interest in the property required by this Paragraph 11.4 to
    be covered, whichever is later. This insurance shall include interests of
    the Owner, the Contractor, Subcontractors and Sub-subcontractors in the
    Project. The Contractor shall be named as additional insured
    on these policies and shall provide a minimum of 30 days notice of
    cancellation or material change.

(C) Copyright 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1967,
1970, 1976, 1987, 1997 by The American Institute of Architects, Fifteenth
Edition. Reproduction of the material herein or substantial quotation of its
provisions without written permission of the AIA violates the copyright laws of
the United States and will subject the violate to legal prosecution. WARNING:
Unlicensed photocopying violates U.S. copyright laws and will subject the
violator to legal prosecution. This document was electronically produced with
permission of the AIA and can be reproduced in accordance with your license
without violation until the date of expiration as noted below. User Document:
a-201 gc' s for neurocrine 9.12 -- 9/19/2003. AIA License Number 1106029, which
expires on 3/28/2004.

[AIA LOGO]

(C)1997 AIA(R)
AIA DOCUMENT A201 - 1997
GENERAL CONDITIONS OF THE CONTRACT FOR CONSTRUCTION

The American Institute of Architects
1735 New York Avenue, N.W.
Washington, D.C. 20006-5292

                                                                              46
<PAGE>

THIS DOCUMENT HAS IMPORTANT LEGAL CONSEQUENCES. CONSULTATION WITH AN ATTORNEY IS
ENCOURAGED WITH RESPECT TO ITS COMPLETION OR MODIFICATION. AUTHENTICATION OF
THIS ELECTRONICALLY DRAFTED AIA DOCUMENT MAY BE MADE BY USING AIA DOCUMENT D401.

This document has been approved and endorsed by The Associated General
Contractors of America.

    11.4.1.1 Property insurance shall be on an "all-risk" or equivalent policy
    form and shall include, without limitation, insurance against the perils of
    fire (with extended coverage) and physical loss or damage including, without
    duplication of coverage, theft, vandalism, malicious mischief, collapse,
    earthquake, flood, windstorm, falsework, testing and startup, temporary
    buildings and debris removal including demolition occasioned by enforcement
    of any applicable legal requirements, and shall cover reasonable
    compensation for Architect's and Contractor's services and expenses required
    as a result of such insured loss.

    11.4.1.2 If the Owner does not intend to purchase such property insurance
    required by the Contract and with all of the coverages in the amount
    described above, the Owner shall so inform the Contractor in writing prior
    to commencement of the Work. The Contractor may then effect insurance which
    will protect the interests of the Contractor, Subcontractors and
    Sub-subcontractors in the Work, and by appropriate Change Order the cost
    thereof shall be charged to the Owner. If the Contractor is damaged by the
    failure or neglect of the Owner to purchase or maintain insurance as
    described above, without so notifying the Contractor in writing, then the
    Owner shall bear all reasonable costs properly attributable thereto.

    11.4.1.3 If the property insurance requires deductibles, the Owner shall pay
    costs not covered because of such deductibles.

    11.4.1.4 This property insurance shall cover portions of the Work stored off
    the site, and also portions of the Work in transit.

    11.4.1.5 Partial occupancy or use in accordance with Paragraph 9.9 shall not
    commence until the insurance company or companies providing property
    insurance have consented to such partial occupancy or use by endorsement or
    otherwise. The Owner and the Contractor shall take reasonable steps to
    obtain consent of the insurance company or companies and shall, without
    mutual written consent, take no action with respect to partial occupancy or
    use that would cause cancellation, lapse or reduction of insurance.

    11.4.2 Boiler and Machinery Insurance. The Owner shall purchase and maintain
    boiler and machinery insurance required by the Contract Documents or by law,
    which shall specifically cover such insured objects during installation and
    until final acceptance by the Owner; this insurance shall include interests
    of the Owner, Contractor, Subcontractors and Sub-subcontractors in the Work,
    and the Owner and Contractor shall be named insureds.

    11.4.3 Loss of Use Insurance. The Owner, at the Owner's option, may purchase
    and maintain such insurance as will insure the Owner against loss of use of
    the Owner's property due to fire or other hazards, however caused. The Owner
    waives all rights of action against the Contractor for loss of use of the
    Owner's property, including consequential losses due to fire or other
    hazards however caused.

    11.4.4 If the Contractor requests in writing that insurance for risks other
    than those described herein or other special causes of loss be included in
    the property insurance policy, the Owner shall, if possible, include such
    insurance, and the cost thereof shall be charged to the Contractor by
    appropriate Change Order.

    11.4.5 If during the Project construction period the Owner insures
    properties, real or personal or both, at or adjacent to the site by property
    insurance under policies separate from those insuring the Project, or if
    after final payment property insurance is to be provided on the completed
    Project through a policy or policies other than those insuring the Project
    during the construction period, the Owner shall waive all rights in
    accordance with the terms of Subparagraph 11.4.7 for damages caused by fire
    or other causes of loss covered by this separate property insurance. All
    separate policies shall provide this waiver of subrogation by endorsement or
    otherwise.

(C) Copyright 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1967,
1970, 1976, 1987, 1997 by The American Institute of Architects, Fifteenth
Edition. Reproduction of the material herein or substantial quotation of its
provisions without written permission of the AIA violates the copyright laws of
the United States and will subject the violate to legal prosecution. WARNING:
Unlicensed photocopying violates U.S. copyright laws and will subject the
violator to legal prosecution. This document was electronically produced with
permission of the AIA and can be reproduced in accordance with your license
without violation until the date of expiration as noted below. User
Document: a-201 gc's for neurocrine 9.12 -- 9/19/2003. AIA License Number
1106029, which expires on 3/28/2004.

[AIA LOGO]

(C)1997 AIA(R)
AIA DOCUMENT A201 - 1997
GENERAL CONDITIONS OF THE CONTRACT FOR CONSTRUCTION

The American Institute of Architects
1735 New York Avenue, N.W.
Washington, D.C. 20006-5292

                                                                              47

<PAGE>

THIS DOCUMENT HAS IMPORTANT LEGAL CONSEQUENCES. CONSULTATION WITH AN ATTORNEY IS
ENCOURAGED WITH RESPECT TO ITS COMPLETION OR MODIFICATION. AUTHENTICATION OF
THIS ELECTRONICALLY DRAFTED AIA DOCUMENT MAY MADE BY USING ASA DOCUMENT D401.

This document has been approved and endorsed by The Associated General
Contractors of America.

    11.4.6 Before an exposure to loss may occur, the Owner shall file with the
    Contractor a copy of each policy that includes insurance coverages required
    by this Paragraph 11.4. Each policy shall contain all generally applicable
    conditions, definitions, exclusions and endorsements related to this
    Project. Each policy shall contain a provision that the policy will not be
    canceled or allowed to expire, and that its limits will not be reduced,
    until at least 30 days' prior written notice has been given to the
    Contractor.

    11.4.7 Waivers of Subrogation. The Owner and Contractor waive all rights
    against (i) each other and any of their subcontractors, sub-subcontractors,
    agents and employees, each of the other, and (2) the Architect, Architect's
    consultants, separate contractors described in Article 6, if any, and any of
    their subcontractors, sub-subcontractors, agents and employees, for damages
    caused by fire or other causes of loss to the extent covered by property
    insurance obtained pursuant to this Paragraph 11.4 or other properly
    insurance applicable to the Work, except such rights as they have to
    proceeds of such insurance held by the Owner as fiduciary. The Owner or
    Contractor, as appropriate, shall require of the Architect, Architect's
    consultants, separate contractors described in Article 6, if any, and the
    subcontractors, sub-subcontractors, agents and employees of any of them, by
    appropriate agreements, written where legally required for validity, similar
    waivers each in favor of other parties enumerated herein. The policies shall
    provide such waivers of subrogation by endorsement or otherwise. A waiver of
    subrogation shall be effective as to a person or entity even though that
    person or entity would otherwise have a duty of indemnification, contractual
    or otherwise, did not pay the insurance premium directly or indirectly, and
    whether or not the person or entity had an insurable interest in the
    property damaged.

    11.4.8 A loss insured under Owner's property insurance shall be adjusted by
    the Owner as fiduciary and made payable to the Owner as fiduciary for the
    insureds, as their interests may appear, subject to requirements of any
    applicable mortgagee clause and of Subparagraph 11.4.10. The Contractor
    shall pay Subcontractors their just shares of insurance proceeds received by
    the Contractor, and by appropriate agreements, written where legally
    required for validity, shall require Subcontractors to make payments to
    their Sub-subcontractors in similar manner.

    11.4.9 If required in writing by a party in interest, the Owner as fiduciary
    shall, upon occurrence of an insured loss, give bond for proper performance
    of the Owner's duties. The cost of required bonds shall be charged against
    proceeds received as fiduciary. The Owner shall deposit in a separate
    account proceeds so received, which the Owner shall distribute in accordance
    with such agreement as the parties in interest may reach, or in accordance
    with an arbitration award in which case the procedure shall be as provided
    in Paragraph 4.6. If after such loss no other special agreement is made and
    unless the Owner terminates the Contract for convenience, replacement of
    damaged property shall be performed by the Contractor after notification of
    a Change in the Work in accordance with Article 7.

    11.4.10 The Owner as fiduciary shall have power to adjust and settle a loss
    with insurers unless one of the parties in interest shall object in writing
    within five days after occurrence of loss to the Owner's exercise of this
    power; if such objection is made, the dispute shall be resolved as provided
    in Paragraphs 4.5 and 4.6. The Owner as fiduciary shall, in the case of
    arbitration, make settlement with insurers in accordance with directions of
    the arbitrators. If distribution of insurance proceeds by arbitration is
    required, the arbitrators will direct such distribution.

    11.5

    11.5.1

(C) Copyright 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1967,
1970, 1976, 1987, 1997 by The American Institute of Architects. Fifteenth
Edition. Reproduction of the material herein or substantial quotation of its
provisions without written permission of the AIA violates the copyright laws of
the United States and will subject the violate to legal prosecution. WARNING:
Unlicensed photocopying violates U.S. copyright laws and will subject the
violator to legal prosecution. This document was electronically produced with
permission of the AIA and can be reproduced in accordance with your license
without violation until the date of expiration as noted below. User Document:
A-201 gc's for neurocrine 9.12 - 9/19/2003. AIA License Number 1106029, which
expires on 3/28/2004.

[AIA LOGO]

(C)1997 AIA(R)
AIA DOCUMENT A201 - 1997
GENERAL CONDITIONS OF THE CONTRACT FOR CONSTRUCTION

The American institute of Architects
1735 New York Avenue, N.W.
Washington, D.C. 20006-5292

                                                                              48

<PAGE>

THIS DOCUMENT HAS IMPORTANT LEGAL CONSEQUENCES. CONSULTATION WITH AN ATTORNEY IS
ENCOURAGED WITH RESPECT TO ITS COMPLETION OR MODIFICATION. AUTHENTICATION OF
THIS ELECTRONICALLY DRAFTED AIA DOCUMENT MAY BE MADE BY USING AIA DOCUMENT D401.

This document has been approved and endorsed by The Associated General
Contractors of America.

    11.5.2

ARTICLE 12 UNCOVERING AND CORRECTION OF WORK

    12.1 UNCOVERING OF WORK

    12.1.1 If a portion of the Work is covered contrary to the Owner or
    Architect's request or to requirements specifically expressed in the
    Contract Documents, it must, if required in writing by the Owner or
    Architect, be uncovered for the Owner or Architect's examination and be
    replaced at the Contractor's expense without change in the Contract Time.

    12.1.2 If a portion of the Work has been covered which neither the Owner nor
    Architect has not specifically requested to examine prior to its being
    covered, the Owner or Architect may request to see such Work and it shall be
    uncovered by the Contractor. If such Work is in accordance with the Contract
    Documents, costs of uncovering and replacement shall, by appropriate Change
    Order, be at the Owner's expense. If such Work is not in accordance with the
    Contract Documents, correction shall be at the Contractor's expense unless
    the condition was caused by the Owner or a separate contractor in which
    event the Owner shall be responsible for payment of such costs.

    12.2 CORRECTION OF WORK

    12.2.1 BEFORE OR AFTER SUBSTANTIAL COMPLETION

    12.2.1.1 The Contractor shall promptly correct Work or failing to conform to
    the requirements of the Contract Documents, whether discovered before or
    after Substantial Completion and whether or not fabricated, installed or
    completed. Costs of correcting such rejected Work, including additional
    testing and inspections and compensation for the Architect's services and
    expenses made necessary thereby, shall be at the Contractor's expense.

    12.2.2 AFTER SUBSTANTIAL COMPLETION

    12.2.2.1 In addition to the Contractor's obligations under Paragraph 3.5,
    if, within-one year after the dale of Substantial Completion of the Work or
    designated portion thereof or after the date for commencement of warranties
    established under Subparagraph 9.9.1, or by terms of an applicable special
    warranty required by the Contract Documents, any of the Work is found to be
    not in accordance with the requirements of the Contract Documents (including
    the warranty set forth in Section 3.5.3, the Contractor shall correct it
    promptly after receipt of written notice from the Owner to do so unless the
    Owner has previously given the Contractor a written acceptance of such
    condition. The Owner shall give such notice promptly after discovery of the
    condition. During the one-year period for correction of Work, if the Owner
    fails to notify the Contractor and give the Contractor an opportunity to
    make the correction, the Owner waives the rights to require correction by
    the Contractor and to make a claim for breach of warranty. If the Contractor
    fails to correct nonconforming Work within a reasonable time during that
    period after receipt of notice from the Owner or Architect, the Owner may
    correct it in accordance with Paragraph 2.4.

   12.2.2.2 The one-year period for correction of Work shall be extended with
   respect to portions of Work first performed after Substantial Completion by
   the period of time between Substantial Completion and the actual performance
   of the Work.

   12.2.2.3 The one-year period for correction of Work shall not be extended by
   corrective Work performed by the Contractor pursuant to this Paragraph 12.2.

(C)Copyright 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966,
1967, 1970, 1976, 1987, 1997 by The American Institute of Architects. Fifteenth
Edition. Reproduction of the material herein or substantial quotation of its
provisions without written permission of the AIA violates the copyright laws of
the United States and will subject the violate to legal prosecution. WARNING:
Unlicensed photocopying violates U.S. copyright laws and will subject the
violator to legal prosecution. This document was electronically produced with
permission of the AIA and can be reproduced in accordance with your license
without violation until the date of expiration as noted below. User Document:
a-201 gc' s for neurocrine 9.12 -- 9/19/2003. AIA License Number 1106029, which
expires on 3/28/2004.

[AIA LOGO]

(C)1997 AIA(R)
AIA DOCUMENT A201 - 1997
GENERAL CONDITIONS OF THE CONTRACT FOR CONSTRUCTION

The American institute of Architects
1735 New York Avenue, N.W.
Washington, D.C. 20006-5292

                                                                              49

<PAGE>

THIS DOCUMENT HAS IMPORTANT LEGAL CONSEQUENCES. CONSULTATION WITH AN ATTORNEY IS
ENCOURAGED WITH RESPECT TO ITS COMPLETION OR MODIFICATION. AUTHENTICATION OF
THIS ELECTRONICALLY DRAFTED AIA DOCUMENT MAY BE MADE BY USING AIA DOCUMENT D401.

This document has been approved and endorsed by The Associated General
Contractors of America.

    12.2.3 The Contractor shall remove from the site portions of the Work which
    are not in accordance with the requirements of the Contract Documents and
    are neither corrected by the Contractor nor accepted by the Owner.

    12.2.4 The Contractor shall bear the cost of correcting destroyed or damaged
    construction, whether completed or partially completed, of the Owner or
    separate contractors caused by the Contractor's correction or removal of
    Work which is not in accordance with the requirements of the Contract
    Documents.

    12.2.5 Nothing contained in this Paragraph 12.2 shall be construed to
    establish a period of limitation with respect to other obligations which the
    Contractor might have under the Contract Documents. Establishment of the
    one-year period for correction of Work as described in Subparagraph 12.2.2
    relates only to the specific obligation of the Contractor to correct the
    Work, and has no relationship to the time within which the obligation to
    comply with the Contract Documents may be sought to be enforced, nor to the
    time within which proceedings may be commenced to establish the Contractor's
    liability with respect to the Contractor's obligations other than
    specifically to correct the Work.

    12.3 ACCEPTANCE OF NONCONFORMING WORK

    12.3.1 If the Owner prefers to accept Work which is not in accordance with
    the requirements of the Contract Documents, the Owner may do so instead of
    requiring its removal and correction, in which case the Contract Sum will be
    reduced as appropriate and equitable. Such adjustment shall be effected
    whether or not final payment has been made.

ARTICLE 13 MISCELLANEOUS PROVISIONS

    13.1 GOVERNING LAW

    13.1.1 The Contract shall be governed by the law of the place where the
    Project is located.

    13.2 SUCCESSORS AND ASSIGNS

    13.2.1 The Owner and Contractor respectively bind themselves, their
    partners, successors, assigns and legal representatives to the other party
    hereto and to partners, successors, assigns and legal representatives of
    such other party in respect to covenants, agreements and obligations
    contained in the Contract Documents. Except as provided in Subparagraph
    13.2.2, neither party to the Contract shall assign the Contract as a whole
    without written consent of the other. If either party attempts to make such
    an assignment without such consent, that party shall nevertheless remain
    legally responsible for all obligations under the Contract. Owner has
    specifically contracted for the services of Contractor and, therefore,
    Contractor may not assign or delegate Contractor's obligations under this
    Agreement, either in whole or in part, without the prior written consent of
    Owner, which may be granted or withheld in the sole and absolute discretion
    of Owner. Any attempt by Contractor to assign or delegate this Agreement, in
    whole or in part, without Owner's prior written consent, shall be voidable
    at the option of Owner. Owner may assign this Agreement at any time without
    the prior consent of Contractor. Notwithstanding the foregoing provisions of
    this Section, Contractor hereby agrees to promptly execute any and all
    documents which may be reasonably requested by any lender respecting the
    assignment of this Agreement or Owner's rights and obligations thereunder,
    in whole or in part, and Contractor shall be bound thereby.

    13.2.2 The Owner may, with consent of the Contractor collaterally, assign
    the Contract to an institutional lender providing construction financing
    for the Project. In such event, the lender shall assume the Owner's rights
    and obligations under the Contract Documents only if the lender forecloses
    on its collateral assignment or surety interests. The Contractor shall
    execute all consents reasonably required to facilitate such assignment.

(C) Copyright 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1967,
1970, 1976, 1987, 1997 by The American Institute of Architects. Fifteenth
Edition. Reproduction of the material herein or substantial quotation of its
provisions without written permission of the AIA violates the copyright laws of
the United States and will subject the violate to legal prosecution. WARNING:
Unlicensed photocopying violates U.S. copyright laws and will subject the
violator to legal prosecution. This document was electronically produced with
permission of the AIA and can be reproduced in accordance with your license
without violation until the date of expiration as noted below. User Document:
a-201 gc's for neurocrine 9.12 -- 9/19/2003. AIA License Number 1106029, which
expires on 3/28/2004.

[AIA LOGO]

(C)1997 AIA(R)
AIA DOCUMENT A201 - 1997
GENERAL CONDITIONS OF THE CONTRACT FOR CONSTRUCTION

The American Institute of Architects
1735 New York Avenue, N.W.
Washington, D.C. 20006-5292

                                                                              50

<PAGE>

THIS DOCUMENT HAS IMPORTANT LEGAL CONSEQUENCES. CONSULTATION WITH AN ATTORNEY IS
ENCOURAGED WITH RESPECT TO ITS COMPLETION OR MODIFICATION. AUTHENTICATION OF
THIS ELECTRONICALLY DRAFTED AIA DOCUMENT MAY BE MADE BY USING AIA DOCUMENT D407.

This document has been approved and endorsed by The Associated General
Contractors of America.

    13.3 WRITTEN NOTICE

    13.3.1 Written notice shall be deemed to have been duly served if delivered
    in person to the individual or a member of the firm or entity or to an
    officer of the corporation for which it was intended, or if delivered at or
    sent by registered or certified mail, or facsimile machine, or e-mail to the
    last business address known to the party giving notice.

    13.4 RIGHTS AND REMEDIES

    13.4.1 Duties and obligations imposed by the Contract Documents and rights
    and remedies available thereunder shall be in addition to and not a
    limitation of duties, obligations, rights and remedies otherwise imposed or
    available by law.

    13.4.2 No action or failure to act by the Owner, Architect or Contractor
    shall constitute a waiver of a right or duty afforded them under the
    Contract, nor shall such action or failure to act constitute approval of or
    acquiescence in a breach thereunder, except as may be specifically agreed in
    writing.

    13.5 TESTS AND INSPECTIONS

    13.5.1 Tests, inspections and approvals of portions of the Work required by
    the Contract Documents or by laws, ordinances, rules, regulations or orders
    of public authorities having jurisdiction shall be made at an appropriate
    time. Unless otherwise provided, the Owner shall make arrangements for such
    tests, inspections and approvals with an independent testing laboratory or
    entity acceptable to the Contractor, or with the appropriate public
    authority, and shall bear all related costs of tests, inspections and
    approvals upon receipt of written request. The Contractor shall give the
    Architect timely notice of when and where tests and inspections are to be
    made so that the Architect may be present for such procedures. The Owner
    shall bear costs of tests, inspections or approvals which do not become
    requirements until after bids are received or negotiations concluded.

    13.5.2 If the Architect, Owner or public authorities having jurisdiction
    determine that portions of the Work require additional testing, inspection
    or approval not included under Subparagraph 13.5.1, the Owner or Architect
    will, instruct the Contractor to make arrangements for such additional
    testing, inspection or approval by an entity acceptable to the Owner, and
    the Contractor shall give timely notice to the Owner or Architect of when
    and where tests and inspections are to be made so that the Owner or
    Architect may be present for such procedures. Such costs, except as provided
    in Subparagraph 13.5.3, shall be at the Owner's expense.

    13.5.3 If such procedures for testing, inspection or approval under
    Subparagraphs 13.5.1 and 13.5.2 reveal failure of the portions of the Work
    to comply with requirements established by the Contract Documents, all costs
    made necessary by such failure including those of repeated procedures and
    compensation for the Architect's services and expenses shall be at the
    Contractor's expense.

    13.5.4 Required certificates of testing, inspection or approval shall,
    unless otherwise required by the Contract Documents, be secured by the
    Contractor and promptly delivered to the Owner or Architect.

    13.5.5 If the Architect is to observe tests, inspections or approvals
    required by the Contract Documents, the Architect will do so promptly and,
    where practicable, at the normal place of testing.

(C) Copyright 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1967,
1970, 1976, 1987, 1997 by The American Institute of Architects. Fifteenth
Edition. Reproduction of the material herein or substantial quotation of its
provisions without written permission of the AIA violates the copyright laws of
the United States and will subject the violate to legal prosecution. WARNING:
Unlicensed photocopying violates U.S. copyright laws and will subject the
violator to legal prosecution. This document was electronically produced with
permission of the AIA and can be reproduced in accordance with your license
without violation until the date of expiration as noted below. User Document:
a-201 gc' s for neurocrine 9.12 -- 9/19/2003. AIA License Number 1106029, which
expires on 3/28/2004.

[AIA LOGO]

(C)1997 AIA(R)
AIA DOCUMENT A201 - 1997
GENERAL CONDITIONS OF THE CONTRACT FOR CONSTRUCTION

The American Institute of Architects
1735 New York Avenue, N.W.
Washington, D.C. 20006-5292

                                                                              51
<PAGE>

THIS DOCUMENT HAS IMPORTANT LEGAL CONSEQUENCES. CONSULTATION WITH AN ATTORNEY IS
ENCOURAGED WITH RESPECT TO ITS COMPLETION OR MODIFICATION. AUTHENTICATION OF
THIS ELECTRONICALLY DRAFTED AIA DOCUMENT MAY BE MADE BY USING AIA DOCUMENT D401.

This document has been approved and endorsed by The Associated General
Contractors of America.

    13.5.6 Tests or inspections conducted pursuant to the Contract Documents
    shall be made promptly to avoid unreasonable delay in the Work.

    13.6 INTEREST

    13.6.1 Payments due and unpaid under the Contract Documents shall bear
    interest from the date payment is due at such rate as the parties may agree
    upon in writing or, in the absence thereof, at the legal rate prevailing
    from time to time at the place where the Project is located.

    13.7 COMMENCEMENT OF STATUTORY LIMITATION PERIOD

    13.7.1 As between the Owner and Contractor:

        .1  Before Substantial Completion. As to acts or failures to act
            occurring prior to the relevant date of Substantial Completion, any
            applicable statute of limitations shall commence to run and any
            alleged cause of action shall be deemed to have accrued in any and
            all events not later than such date of Substantial Completion;

        .2  Between Substantial Completion and Final Certificate for Payment. As
            to acts or failures to act occurring subsequent to the relevant date
            of Substantial Completion and prior to issuance of the final
            Certificate for Payment, any applicable statute of limitations shall
            commence to run and any alleged cause of action shall be deemed to
            have accrued in any and all events not later than the date of
            issuance of the final Certificate for Payment; and

        .3  After Final Certificate for Payment. As to acts or failures to act
            occurring after the relevant date of issuance of the final
            Certificate for Payment, any applicable statute of limitations shall
            commence to run and any alleged cause of action shall be deemed to
            have accrued in any and all events not later than the date of any
            act or failure to act by the Contractor pursuant to any Warranty
            provided under Paragraph 3.5, the date of any correction of the Work
            or failure to correct the Work by the Contractor under Paragraph
            12.2, or the date of actual commission of any other act or failure
            to perform any duty or obligation by the Contractor or Owner,
            whichever occurs last.

13.8 Owner shall furnish Contractor information, including, but not limited to,
plans, drawings, prints and/or specifications for Contractor to use as required
in the proper performance of Contractor's Work. Any information furnished to or
learned by Contractor in performance of its Work relating to Owner's processes,
techniques, methods, ideas, discoveries, developments, records, contract terms,
or financial condition including without limitation, the aforementioned plans,
drawings, prints, and/or specifications, shall be deemed "Confidential
Information." Contractor agrees to retain, and shall require any of its
affiliated companies, employees, subcontractors, Contractor's Subcontractors and
any other parties entering into agreements with Contractor with respect to the
Work to retain, in strict confidence and not permit to be disclosed to others
any Confidential Information or any works derived from such information.
Contractor's confidentiality obligations shall not extend to information: (a)
which is a part of the any obligations under this Section: (b) which Contractor
can show through its written records was in its possession prior to disclosure
to Contractor by Owner: (c) which is Information: or (d) which was disclosed to
Contractor by a third party who is not under an obligation to Owner to hold it
in confidence, with the understanding that this exclusion shall only allow use
of such disclosed information in the pursuit and performance of projects with
such third party. In the event Contractor becomes legally compelled to
disclose any Confidential Information, it shall provide Owner with notice
thereof so Owner is provided an opportunity to obtain a protective order or
other appropriate remedy, and obtain reliable assurance that such information
shall be accorded confidential treatment. Contractor shall treat the

(C) Copyright 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1967,
1970, 1976, 1987, 1997 by The American Institute of Architects. Fifteenth
Edition. Reproduction of the material herein or substantial quotation of its
provisions without written permission of the AIA violates the copyright laws of
the United States and will subject the violate to legal prosecution. WARNING:
Unlicensed photocopying violates U.S. copyright laws and will subject the
violator to legal prosecution. This document was electronically produced with
permission of the AIA and can be reproduced in accordance with your license
without violation until the date of expiration as noted below. User Document:
a-201 gc's for neurocrine 9.12 -- 9/19/2003. AIA License Number 1106029, which
expires on 3/28/2004.

[AIA LOGO]

(C)1997 AIA(R)
AIA DOCUMENT A201 - 1997
GENERAL CONDITIONS OF THE CONTRACT FOR CONSTRUCTION

The American Institute of Architects
1735 New York Avenue, N.W.
Washington, D.C. 20006-5292

                                                                              52

<PAGE>

THIS DOCUMENT HAS IMPORTANT LEGAL CONSEQUENCES. CONSULTATION WITH AN ATTORNEY IS
ENCOURAGED WITH RESPECT TO ITS COMPLETION OR MODIFICATION. AUTHENTICATION OF
THIS ELECTRONICALLY DRAFTED AIA DOCUMENT MAY BE MADE BY USING AIA DOCUMENT D401.

This document has been approved and endorsed by The Associated General
Contractors of America.

obligations set forth in this Section as continuing obligations that survive the
completion or termination of performance under this Agreement for a period of
five (5) years and shall take all necessary steps to ensure compliance with this
provision by Contractor's Subcontractors and employees. Contractor agrees to
return all such Confidential Information, including, but not limited to, all
originals and copies (if any) of plans, drawings, prints, and/or specifications,
whether supplied by owner or developed for Owner, immediately upon request by
Owner or upon completion of Contractors performance hereunder, except that
Contractor shall be entitled to retain one copy of all documents for its private
records.

ARTICLE 14 TERMINATION OR SUSPENSION OF THE CONTRACT

    14.1   TERMINATION BY THE CONTRACTOR

    14.1.1 The Contractor may terminate the Contract if the Work is stopped for
    a period of 30 consecutive days through no act or fault of the Contractor or
    a Subcontractor, Sub- subcontractor or their agents or employees or any
    other persons or entities performing portions of the Work under direct or
    indirect contract with the Contractor, for any of the following reasons:

        .1  issuance of an order of a court or other public authority having
            jurisdiction which requires all Work to be stopped;

        .2  an act of government, such as a declaration of national emergency
            which requires all Work to be stopped;

        .3  because the Architect has not issued a Certificate for Payment and
            has not notified the Contractor of the reason for withholding
            certification as provided in Subparagraph 9.4.1, or because the
            Owner has not made payment on a Certificate ' for Payment within the
            time stated in the Contract Documents; or

        .4  the Owner has failed to furnish to the Contractor promptly, upon the
            Contractor's request, reasonable evidence as required by
            Subparagraph 2.2.1.

    14.1.2 The Contractor may terminate the Contract if, through no act or fault
    of the Contractor or a Subcontractor, Sub-subcontractor or their agents or
    employees or any other persons or entities performing portions of the Work
    under direct or indirect contract with the Contractor, repeated suspensions,
    delays or interruptions of the entire Work by the Owner as described in
    Paragraph 14.3 constitute in the aggregate more than 100 percent of the
    total number of days scheduled for completion, or 120 days in any 365-day
    period, whichever is less.

    14.1.3 If one of the reasons described in Subparagraph 14.1.1 or 14.1.2
    exists, the Contractor may, upon seven days' written notice to the Owner and
    Architect, terminate the Contract and recover from the Owner payment for
    Work executed and for proven loss with respect to materials, equipment,
    tools, and construction equipment and machinery, including reasonable
    overhead, profit and damages.

    14.1.4 If the Work is stopped for a period of 60 consecutive days through no
    act or fault of the Contractor or a Subcontractor or their agents or
    employees or any other persons performing portions of the Work under
    contract with the Contractor because the Owner has persistently failed to
    fulfill the Owner's obligations under the Contract Documents with respect to
    matters important to the progress of the Work, the Contractor may, upon
    seven additional days' written notice to the Owner and the Architect,
    terminate the Contract and recover from the Owner as provided in
    Subparagraph 14.1.3.

    14.2   TERMINATION BY THE OWNER FOR CAUSE

    14.2.1 The Owner may terminate the Contract if the Contractor:

        .1  persistently or repeatedly refuses or fails to supply enough
            properly skilled workers or proper materials;

(C) Copyright 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1967,
1970, 1976, 1987, 1997 by The American Institute of Architects. Fifteenth
Edition. Reproduction of the material herein or substantial quotation of its
provisions without written permission of the AIA violates the copyright laws of
the United States and will subject the violate to legal prosecution. WARNING:
Unlicensed photocopying violates U.S. copyright laws and will subject the
violator to legal prosecution. This document was electronically produced with
permission of the AIA and can be reproduced in accordance with your license
without violation until the date of expiration as noted below. User Document:
a-201 gc' s for neurocrine 9.12 -- 9/19/2003. AIA License Number 1106029, which
expires on 3/28/2004.

[AIA LOGO]

(C)1997 AIA(R)
AIA DOCUMENT A201 - 1997
GENERAL CONDITIONS OF THE CONTRACT FOR CONSTRUCTION

The American Institute of Architects
1735 New York Avenue, N.W.
Washington, D.C. 20006-5292

                                                                              53

<PAGE>

THIS DOCUMENT HAS IMPORTANT LEGAL CONSEQUENCES. CONSULTATION WITH AN ATTORNEY IS
ENCOURAGED WITH RESPECT TO ITS COMPLETION OR MODIFICATION. AUTHENTICATION OF
THIS ELECTRONICALLY DRAFTED AIA DOCUMENT MAY BE MADE BY USING AIA DOCUMENT D401.

This document has been approved and endorsed by The Associated General
Contractors of America.

        .2  fails to make payment to Subcontractors for materials or labor in
            accordance with the respective agreements between the Contractor and
            the Subcontractors;

        .3  persistently disregards laws, ordinances, or rules, regulations or
            orders of a public authority having jurisdiction; or

        .4  otherwise is guilty of substantial breach of a provision of the
            Contract Documents.

        .5  persistently disregards the instructions of the Architect, Owner's
            Representative or the Owner (when such instructions are based on the
            requirements of the Contract Documents);

        .6  is adjudged a bankrupt or insolvent, or make a general assignment
            for the benefit of the Contractor's creditors, or a trustee or
            receiver is appointed for the Contractor or for any of its property,
            or files a petition to take advantage of any debtor's act, or to
            reorganize under bankruptcy or similar laws; or

        .7  otherwise does not fully comply with the Contract Documents.

    14.2.2 When any of the above reasons exist, the Owner, upon certification by
    the Architect that sufficient cause exists to justify such action, may
    without prejudice to any other rights or remedies of the Owner and after
    giving the Contractor and the Contractor's surety, if any, seven days'
    written notice, terminate employment of the Contractor and may, subject to
    any prior rights of the surety:

        .1  take possession of the site and of all materials, equipment, tools,
            and construction equipment and machinery thereon owned by the
            Contractor;

        .2  accept assignment of subcontracts pursuant to Paragraph 5.4; and

        .3  finish the Work by whatever reasonable method the Owner may deem
            expedient. Upon request of the Contractor, the Owner shall furnish
            to the Contractor a detailed accounting of the costs incurred by the
            Owner in finishing the Work.

    14.2.3 When the Owner terminates the Contract for one of the reasons stated
    in Subparagraph 14.2.1, the Contractor shall not be entitled to receive
    further payment until the Work is finished.

    14.2.4 If the unpaid balance of the Contract Sum exceeds costs of finishing
    the Work, including compensation for the Architect's services and expenses
    made necessary thereby, and other damages incurred by the Owner and not
    expressly waived, such excess shall be paid to the Contractor. If such costs
    and damages exceed the unpaid balance, the Contractor shall pay the
    difference to the Owner. The amount to be paid to the Contractor or Owner,
    as the case may be, shall be certified by the Architect, upon application,
    and this obligation for payment shall survive termination of the Contract.

    14.3 SUSPENSION BY THE OWNER FOR CONVENIENCE

    14.3.1 The Owner may, without cause, order the Contractor in writing to
    suspend, delay or interrupt the Work in whole or in part for such period of
    time as the Owner may determine.

    14.3.2 The Contract Sum and Contract Time shall be adjusted for increases in
    the cost and time caused by suspension, delay or interruption as described
    in Subparagraph 14.3.1. Adjustment of the Contract Sum shall include profit.
    No adjustment shall be made to the extent:

        .1  that performance is, was or would have been so suspended, delayed or
            interrupted by another cause for which the Contractor is
            responsible; or

(C) Copyright 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1967,
1970, 1976, 1987, 1997 by The American Institute of Architects. Fifteenth
Edition. Reproduction of the material herein or substantial quotation of its
provisions without written permission of the AIA violates the copyright laws of
the United States and will subject the violate to legal prosecution. WARNING:
Unlicensed photocopying violates U.S. copyright laws and will subject the
violator to legal prosecution. This document was electronically produced with
permission of the AIA and can be reproduced in accordance with your license
without violation until the date of expiration as noted below. User Document:
a-201 gc' s for neurocrine 9.12 -- 9/19/2003. AIA License Number 1106029, which
expires on 3/28/2004.

[AIA LOGO]

(C)1997 AIA(R)
AIA DOCUMENT A201 - 1997
GENERAL CONDITIONS OF THE CONTRACT FOR CONSTRUCTION

The American Institute of Architects
1735 New York Avenue, N.W.
Washington, D.C. 20006-5292

                                                                              54

<PAGE>

THIS DOCUMENT HAS IMPORTANT LEGAL CONSEQUENCES. CONSULTATION WITH AN ATTORNEY IS
ENCOURAGED WITH RESPECT TO ITS COMPLETION OR MODIFICATION. AUTHENTICATION OF
THIS ELECTRONICALLY DRAFTED AIA DOCUMENT MAY BE MADE BY USING AIA DOCUMENT D401.

This document has been approved and endorsed by The Associated General
Contractors of America.

        .2  that an equitable adjustment is made or denied under another
            provision of the Contract.

    14.4 TERMINATION BY THE OWNER FOR CONVENIENCE

    14.4.1 The Owner may, at any time, terminate the Contract for the Owner's
    convenience and without cause.

    14.4.2 Upon receipt of written notice from the Owner of such termination for
    the Owner's convenience, the Contractor shall:

        .1  cease operations as directed by the Owner in the notice;

        .2  take actions necessary, or that the Owner may direct, for the
            protection and preservation of the Work; and

        .3  except for Work directed to be performed prior to the effective date
            of termination stated in the notice, terminate all existing
            subcontracts and purchase orders and enter into no further
            subcontracts and purchase orders.

    14.4.3 In case of such termination for the Owner's convenience, the
    Contractor shall be entitled to receive payment for Work executed or
    suitably stored, and costs incurred by reason of such termination, along
    with overhead and profit on the Cost of the Work executed or suitably
    stored.

(C) Copyright 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1967,
1970, 1976, 1987, 1997 by The American Institute of Architects. Fifteenth
Edition. Reproduction of the material herein or substantial quotation of its
provisions without written permission of the AIA violates the copyright laws of
the United States and will subject the violate to legal prosecution. WARNING:
Unlicensed photocopying violates U.S. copyright laws and will subject the
violator to legal prosecution. This document was electronically produced with
permission of the AIA and can be reproduced in accordance with your license
without violation until the date of expiration as noted below. User Document:
a-201 gc' s for neurocrine 9.12 -- 9/19/2003. AIA License Number 1106029, which
expires on 3/28/2004.

[AIA LOGO]

(C)1997 AIA(R)
AIA DOCUMENT A201 - 1997
GENERAL CONDITIONS OF THE CONTRACT FOR CONSTRUCTION

The American Institute of Architects
1735 New York Avenue, N.W.
Washington, D.C. 20006-5292

                                                                              55

<PAGE>

                     ATTACHMENT A - CONTRACTOR'S INSURANCE

             TO GENERAL CONDITIONS OF THE CONTRACT FOR CONSTRUCTION

                               SEPTEMBER 19, 2003

         1.       Required Coverage. The Contractor shall maintain in effect, at
                  all times during the performance of the Work under the
                  Agreement, not less than the following coverage and limits of
                  insurance which shall be maintained under forms of policies
                  satisfactory to the Owner.

         1.1      Worker's Compensation and Employer's Liability Insurance.
                  Worker's Compensation insurance shall be provided as required
                  by any applicable law or regulation, covering all employees to
                  the Contractor. Employer's Liability insurance shall be
                  provided with liability limits of not less than $1,000,0000.

         1.2      General Liability Insurance. The Contractor shall carry
                  Commercial General Liability insurance covering operations by
                  or on behalf of the Contractor, providing insurance for bodily
                  injury including death and property damage and including
                  coverage for:

                  1.       Premises and operations;

                  2.       Products liability and products completed operations

                  3.       Broad form contractual liability insuring the
                           obligations assumed by the Contractor in this
                           Agreement;

                  4.       Broad from property damage (including completed
                           operations);

                  5.       Explosion, collapse and under ground hazards
                           (X.C.U.); (if applicable)

                  6.       Personal injury liability;

                  7.       Owner's and Contractor's protective liability.

         The Contractor shall provide an Occurrence form of Commercial General
         Liability policy, and the limits of liability shall be not less than:

         $5,000,000 each occurrence (combined single limit for bodily injury and
         property damage)
         $5,000,000 for personal injury liability
         $5,000,000 aggregate for products-completed operations
         $5,000,000 general aggregate

         The owner shall be named as additional insured under each commercial
         liability insurance policy.

         1.3      Automobile Liability Insurance. The Contractor shall carry
                  commercial automobile owned, hired and non-owned automobiles.
                  The limits of liability shall be not less than $1,000,000
                  combined single limit each accident for bodily injury and
                  property damage.

         2.       Certificates. Certificates of Insurance, as evidence of the
                  insurance required by This Agreement shall be delivered by the
                  Contractor to the Owner and to each additional insured before
                  any work is commenced. The Certificates of Insurance shall
                  provide that there will be no cancellation to the Owner and
                  each additional insured without 30 days written notice.

                                  Page 1 of 2

<PAGE>

                     ATTACHMENT A - CONTRACTOR'S INSURANCE

             TO GENERAL CONDITIONS OF THE CONTRACT FOR CONSTRUCTION

                               SEPTEMBER 19, 2003

         3.       Insurance Requirements for Subcontractors. The Contractor
                  shall insure that each Subcontractor performing any portion of
                  the Work, regardless of the tier of the subcontract, shall
                  procure and maintain the insurance coverage's required
                  pursuant to Section 1 above in like form applicable to the
                  Contractor as set forth therein (except that the limits set
                  forth in Section 1 may be reduced to not less than
                  $1,000,000), shall provide the Certificates of Insurance
                  required pursuant to Section 2, and shall satisfy the
                  requirements of Section 3 relating to additional insured.

         4.       Professional Liability Exposures. The Owner acknowledges that
                  the Contractor will not provide Professional Errors and
                  Omissions Insurance as the Contractor in his role of
                  Contractor if not acting as an Architect or Engineer.
                  Professional Liability Insurance in forms and amounts
                  acceptable to the Contractor shall be carried if the
                  Contractor is to provide design services to the Project.
                  Evidence of coverage in the form of a Certificate of Insurance
                  shall be provided to the Contractor prior to the start of
                  work.

         5.       Property Insurance. If the Owner has not provided acceptable
                  evidence of property insurance coverage required herein at the
                  start of Work, then the Contractor may obtain such coverage
                  and the cost therefore shall become a cost reimbursable item.

         6.       General Requirements. General liability and umbrella policies
                  of insurance required hereunder shall be written by companies
                  authorized to do business in California and rate A-VII or
                  better in Best's Insurance Guide.

                  All policies of insurance obtained by Contractor shall be
                  primary and non-contributing and shall contain a waiver of
                  subrogation in favor of the Owner.

                                  Page 2 of 2

<PAGE>

                        ATTACHMENT B - STORED MATERIALS

             TO GENERAL CONDITIONS OF THE CONTRACT FOR CONSTRUCTION

                               SEPTEMBER 19, 2003

         In addition, payment for materials and equipment stored on or of the
         site shall be conditioned on Owner's lender approving disbursements for
         such stored materials and equipment. Owner's load documents may include
         a provision to the following effect: "Lender shall have the right to
         specifically approve or disapprove, in its absolute judgment, all
         Disbursements for Stored Materials. Owner's approval shall not be
         unreasonably withheld. For the purpose of this Section, "Stored
         Materials" shall mean materials purchased or to be purchased by
         Borrower or the General Contractor or any subcontractor at the date of
         a request for Disbursement but not yet installed or incorporated into
         the Project. Without limiting Lender's approval rights as set forth
         above in this Section, Lender will not approve disbursements for Stored
         Materials until Borrower supplies to Lender: (a) evidence satisfactory
         to Lender that the Stored Materials are or shall be included in the
         coverage of the insurance policies required by the Loan Documents; (b)
         evidence satisfactory to Lender from the seller of fabricator of the
         Stored Materials certifying that upon payment, ownership thereof will
         vest in Borrower free of any liens or claims of third parties; and (c)
         (i) evidence satisfactory to Lender that the Stored Materials are or
         shall be satisfactory stored on the Project to protect against theft or
         damage, or (ii) if the Stored Materials are not stored or shall not be
         stored on the project, then (A) evidence satisfactory to Lender that
         the Stored Materials are or shall be stored in a bonded warehouse or
         storage yard approved by Lender, and that the warehouse yard has been
         notified that Lender has a security interest in the subject Stored
         Materials, and (B) Lender shall have or will have received from
         Borrower the original warehouse receipt. With Lender's prior written
         approval, Stored Materials for which funds have been disbursed by
         Lender hereunder may be stored in the yard or warehouse of the seller
         or fabricator, subject to satisfaction of conditions (a) and (b) in
         this Paragraph, and provided further that Lender receives satisfactory
         evidence that the Stored Materials are protected against theft and
         damage, have been suitably identified as belonging to Borrower for use
         in the Project and that such seller has been notified of the security
         interest of Lender therein."WARRANT

                  NEITHER THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY
THIS  CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE EXERCISABLE
HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE
STATE  SECURITIES  LAWS.  THE  SECURITIES  MAY NOT BE  OFFERED  FOR SALE,  SOLD,
TRANSFERRED  OR  ASSIGNED  (I) IN THE ABSENCE OF (A) AN  EFFECTIVE  REGISTRATION
STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED OR (B)
AN  OPINION  OF  COUNSEL,  IN A  FORM  REASONABLY  SATISFACTORY  TO VA  SOFTWARE
CORPORATION,  THAT  REGISTRATION  IS NOT REQUIRED  UNDER SAID ACT OR (II) UNLESS
SOLD  PURSUANT  TO RULE 144 OR RULE 144A  UNDER  SAID ACT.  NOTWITHSTANDING  THE
FOREGOING,  THE SECURITIES MAY BE PLEDGED IN CONNECTION  WITH A BONA FIDE MARGIN
ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES.

                             VA SOFTWARE CORPORATION

                        Warrant To Purchase Common Stock

Warrant No.: 1
Number of Shares:  705,883
Date of Issuance: November 6, 2003 ("Issuance Date")

VA  Software  Corporation,  a  Delaware  corporation  (the  "Company"),   hereby
certifies that, for good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, THE RIVERVIEW GROUP LLC, the registered holder
hereof or its  permitted  assigns,  is entitled,  subject to the terms set forth
below,  to purchase from the Company,  at the Exercise  Price (as defined below)
then in  effect,  upon  surrender  of this  Warrant  to  Purchase  Common  Stock
(including all Warrants to Purchase Common Stock issued in exchange, transfer or
replacement  hereof,  the "Warrant"),  at any time or times on or after the date
hereof,  but not after 11:59 P.M.,  New York Time,  on the  Expiration  Date (as
defined below), Seven Hundred Five Thousand Eight Hundred Eighty Three (705,883)
fully paid nonassessable shares of Common Stock (as defined below) (the "Warrant
Shares"). Except as otherwise defined herein,  capitalized terms in this Warrant
shall have the  meanings  set forth in Section  15.  This  Warrant is one of the
Warrants  to  Purchase  Common  Stock (the "SPA  Warrants")  issued  pursuant to
Section 1 of that certain Securities Purchase Agreement, dated as of November 6,
2003 (the "Initial  Issuance  Date"),  among the Company and the purchasers (the
"Purchasers") referred to therein (the "Securities Purchase Agreement").

          1.  EXERCISE OF WARRANT.

              (a)  Mechanics  of Exercise.  Subject to the terms and  conditions
hereof  (including,  without  limitation,  the  limitations set forth in Section
1(f)),  this Warrant may be  exercised by the holder  hereof on any day from and
after the date hereof, in whole or in part, by

<PAGE>

(i) delivery of a written notice,  in the form attached hereto as Exhibit A (the
"Exercise Notice"), of such holder's election to exercise this Warrant, (ii) (A)
payment  to the  Company of an amount  equal to the  applicable  Exercise  Price
multiplied  by the  number of Warrant  Shares as to which this  Warrant is being
exercised  (the  "Aggregate  Exercise  Price")  in cash or by wire  transfer  of
immediately available funds or (B) by notifying the Company that this Warrant is
being exercised pursuant to a Cashless Exercise (as defined in Section 1(d)) and
(iii) the surrender to the Company,  on or as soon as practicable  following the
date the holder of this Warrant delivers the Exercise Notice to the Company,  of
this Warrant (or an indemnification undertaking in form and substance reasonably
acceptable  to the Company with respect to this Warrant in the case of its loss,
theft or destruction).  No later than three (3) Business Days following the date
on which the Company has received  each of the Exercise  Notice,  the  Aggregate
Exercise  Price (or  notice of a  Cashless  Exercise)  and this  Warrant  (or an
indemnification  undertaking  with  respect  to this  Warrant in the case of its
loss, theft or destruction)  (the "Exercise  Delivery  Documents"),  the Company
shall  instruct  its  transfer  agent to (X) issue and  deliver  to the  address
specified in the Exercise Notice,  a certificate,  registered in the name of the
holder of this Warrant or its designee, for the number of shares of Common Stock
to which the holder of this Warrant is entitled  pursuant to such  exercise,  or
(Y)  provided  that the  Company's  transfer  agent  (the  "Transfer  Agent") is
participating in The Depository Trust Company ("DTC") Fast Automated  Securities
Transfer Program,  upon the request of the holder,  credit such aggregate number
of shares  of Common  Stock to which the  holder  of this  Warrant  is  entitled
pursuant to such exercise to the holder's or its designee's balance account with
DTC through its Deposit Withdrawal Agent Commission system. Upon delivery of the
Exercise  Notice,  this Warrant and the Aggregate  Exercise Price referred to in
clause  (ii)(A)  above or  notification  to the  Company of a Cashless  Exercise
referred to in Section 1(d),  the holder of this Warrant shall be deemed for all
corporate  purposes to have  become the holder of record of the  Warrant  Shares
with  respect to which this  Warrant  has been  exercised  as of the date of the
Exercise  Notice,  irrespective  of the  date of  delivery  of this  Warrant  as
required  by clause  (iii) above or the  certificates  evidencing  such  Warrant
Shares.  If the number of Warrant Shares  represented by this Warrant  submitted
for exercise pursuant to this Section 1(a) is greater than the number of Warrant
Shares  being  acquired  upon an  exercise,  then the  Company  shall as soon as
practicable and in no event later than five (5) Business Days after any exercise
and at its own expense,  issue a new Warrant (in  accordance  with Section 7(d))
representing  the right to  purchase  the number of Warrant  Shares  purchasable
immediately  prior to such  exercise  under  this  Warrant,  less the  number of
Warrant  Shares with respect to which this Warrant is  exercised.  No fractional
shares of Common Stock are to be issued upon the exercise of this  Warrant,  but
rather the number of shares of Common Stock to be issued shall be rounded to the
nearest whole number. The Company shall pay any and all taxes, including without
limitation,   all  documentary  stamp,  transfer  or  similar  taxes,  or  other
incidental expense that may be payable with respect to the issuance and delivery
of Warrant Shares upon exercise of this Warrant.

              (b) Exercise Price. For purposes of this Warrant, "Exercise Price"
means $6.00, subject to adjustment as provided herein.

              (c) Company's  Failure to Timely  Deliver  Securities.  Subject to
Section 1(f), if the Company shall fail for any reason or for no reason to issue
to the holder,  within three  Business Days of receipt of the Exercise  Delivery
Documents,  a certificate  for the number of shares of Common Stock to which the
holder is entitled or to credit the holder's

                                       2
<PAGE>

balance  account with DTC for such number of shares of Common Stock to which the
holder is entitled upon the holder's exercise of this Warrant, the Company shall
pay as  additional  damages in cash to such  holder on each day after such third
Business Day that the issuance of such Common  Stock  certificate  is not timely
effected an amount  equal to 0.5% of the product of (A) the sum of the number of
shares of Common  Stock not issued to the holder on a timely  basis and to which
the holder is entitled and (B) the Closing Sale Price of the Common Stock on the
trading day immediately preceding the last possible date which the Company could
have issued such Common Stock to the holder without  violating  Section 1(a). In
addition,  the holder, upon written notice to the Company, may void its Exercise
Notice with respect to, and have returned,  any portion of this Warrant that has
not been exercised  pursuant to such Exercise Notice;  provided that the voiding
of an Exercise  Notice shall not affect the  Company's  obligations  to make any
payments  which have accrued  prior to the date of such notice  pursuant to this
Section 1(c)(i) or otherwise.

              (d) Cashless Exercise.  Notwithstanding  anything contained herein
to the  contrary,  the  holder  of this  Warrant  may,  in its sole  discretion,
exercise  this  Warrant  in whole or in part  and,  in lieu of  making  the cash
payment  otherwise  contemplated to be made to the Company upon such exercise in
payment of the  Aggregate  Exercise  Price,  elect  instead to receive upon such
exercise the "Net Number" of shares of Common Stock determined  according to the
following formula (a "Cashless Exercise"):

         Net Number = (A x B) - (A x C)
                     ------------------
                                B

                  For purposes of the foregoing formula:

                           A= the total  number of shares with  respect to which
                           this Warrant is then being exercised.

                           B= the  Closing  Sale Price of the  Common  Stock (as
                           reported  by  Bloomberg)  on  the  date   immediately
                           preceding the date of the Exercise Notice.

                           C=  the  Exercise   Price  then  in  effect  for  the
                           applicable   Warrant  Shares  at  the  time  of  such
                           exercise.

              (e) Disputes.  In the case of a dispute as to the determination of
the Exercise Price or the  arithmetic  calculation  of the Warrant  Shares,  the
Company shall promptly issue to the holder the number of Warrant Shares that are
not disputed and resolve such dispute in accordance with Section 12.

              (f) Limitations on Exercises.

                  (i)  Beneficial  Ownership.  The Company  shall not effect the
         exercise of this  Warrant,  and no Person (as  defined  below) who is a
         holder of this Warrant  shall have the right to exercise  this Warrant,
         to the extent that after giving  effect

                                       3
<PAGE>

         to such exercise,  such Person (together with such Person's affiliates)
         would  beneficially  own in excess of 9.99% of the shares of the Common
         Stock outstanding immediately after giving effect to such exercise. For
         purposes of the foregoing  sentence,  the aggregate number of shares of
         Common Stock beneficially owned by such Person and its affiliates shall
         include the number of shares of Common Stock  issuable upon exercise of
         this Warrant with respect to which the  determination  of such sentence
         is being made,  but shall exclude shares of Common Stock which would be
         issuable  upon (i) exercise of the  remaining,  unexercised  portion of
         this Warrant  beneficially  owned by such Person and its affiliates and
         (ii) exercise or conversion of the  unexercised or unconverted  portion
         of any  other  securities  of the  Company  beneficially  owned by such
         Person  and  its  affiliates   (including,   without  limitation,   any
         convertible  notes or convertible  preferred stock or warrants) subject
         to a limitation on conversion or exercise  analogous to the  limitation
         contained herein.  Except as set forth in the preceding  sentence,  for
         purposes of this paragraph, beneficial ownership shall be calculated in
         accordance  with Section 13(d) of the Securities  Exchange Act of 1934,
         as amended.  For purposes of this Warrant, in determining the number of
         outstanding  shares of Common  Stock a holder may rely on the number of
         outstanding  shares of Common Stock as  reflected in (1) the  Company's
         most  recent  Form  10-Q,  Form 10-K or other  public  filing  with the
         Securities  and  Exchange  Commission,  as the case may be,  (2) a more
         recent  public  announcement  by the Company or (3) any other notice by
         the Company or its Transfer Agent setting forth the number of shares of
         Common Stock outstanding.  For any reason at any time, upon the written
         or oral request of the holder of this Warrant, the Company shall within
         24 hours or by the end of the next  Business Day confirm  orally and in
         writing  to the holder of this  Warrant  the number of shares of Common
         Stock then outstanding.  In any case, the number of outstanding  shares
         of Common Stock shall be determined after giving effect to the exercise
         of securities of the Company, including the SPA Warrants, by the holder
         of this  Warrant  and its  affiliates  since the date as of which  such
         number of outstanding shares of Common Stock was reported.

                  (ii)  Principal  Market  Regulation.  The Company shall not be
         obligated  to issue any shares of Common  Stock upon  exercise  of this
         Warrant if the  issuance  of such shares of Common  Stock would  exceed
         that number of shares of Common  Stock which the Company may issue upon
         exercise of this Warrant  without  breaching the Company's  obligations
         under the rules or regulations  of the Principal  Market (the "Exchange
         Cap"),  except that such  limitation  shall not apply in the event that
         the Company obtains the approval of its shareholders as required by the
         applicable  rules of the Principal Market for issuances of Common Stock
         in excess of such amount. Until such approval is obtained, no Purchaser
         shall be issued,  upon exercise of any SPA  Warrants,  shares of Common
         Stock  in an  amount  greater  than the  product  of the  Exchange  Cap
         multiplied by a fraction, the numerator of which is the total number of
         shares of  Common  Stock  underlying  the SPA  Warrants  issued to such
         Purchaser pursuant to the Securities  Purchase Agreement on the Initial
         Issuance Date and the  denominator of which is the aggregate  number of
         shares  of  Common  Stock  underlying  all the  Warrants  issued to the
         Purchasers pursuant to the Securities Purchase Agreement on the Initial
         Issuance  Date  (with  respect to each  Purchaser,  the  "Exchange  Cap
         Allocation").  In the event that any Purchaser  shall sell or otherwise
         transfer any of such Purchaser's SPA Warrants,  the transferee shall be
         allocated  a  pro  rata  portion  of  such  Purchaser's

                                       4
<PAGE>

         Exchange Cap  Allocation,  and the  restrictions  of the prior sentence
         shall  apply to such  transferee  with  respect  to the  portion of the
         Exchange Cap Allocation allocated to such transferee. In the event that
         any holder of SPA  Warrants  shall  exercise  all of such  holder's SPA
         Warrants  into a  number  of  shares  of  Common  Stock  which,  in the
         aggregate, is less than such holder's Exchange Cap Allocation, then the
         difference between such holder's Exchange Cap Allocation and the number
         of shares of  Common  Stock  actually  issued to such  holder  shall be
         allocated to the respective  Exchange Cap  Allocations of the remaining
         holders of SPA Warrants on a pro rata basis in proportion to the shares
         of Common  Stock  underlying  the SPA  Warrants  then held by each such
         holder.  In the event that the Company is  prohibited  from issuing any
         Warrant  Shares for which an  Exercise  Notice has been  received  as a
         result  of the rules  and  regulations  of the  Principal  Market,  the
         Company  shall pay cash in exchange  for  cancellation  of such Warrant
         Shares,  at a price per Warrant Share equal to the  difference  between
         the  Closing  Sale Price and the  Exercise  Price as of the date of the
         attempted exercise.

              (g) Forced Exercise.  Notwithstanding the foregoing,  in the event
that at any time  following the  effective  date of the  Registration  Statement
filed  pursuant  to  Section  2(a) of the  Registration  Rights  Agreement,  the
Conditions to Cancellation  of Right to Exercise  Warrant (as defined below) are
satisfied, then the Company shall have the right to send a written notice to the
holder  hereof  on the  Business  Day  immediately  after the  Measuring  Period
indicating  that the right of the holder to further  exercise  this Warrant will
terminate on the twentieth (20th) trading day (the "Warrant  Cancellation Date")
following receipt of such written notice as to the Warrants for which the holder
has not delivered an Exercise Notice as of such termination date. "Conditions to
Cancellation of Right to Exercise Warrant " means the following conditions:  (i)
on each day during the period beginning on the first day of the Measuring Period
(as defined below) and ending on the Warrant Cancellation Date, the Registration
Statement registering the Registrable Securities (as defined in the Registration
Rights  Agreement) shall be effective and available for the sale of at least all
of the  Registrable  Securities  required to be  included  in such  Registration
Statement  and there  shall not have  been any Grace  Periods;  (ii) on each day
during the  period  beginning  on the  Initial  Issuance  Date and ending on the
Warrant  Cancellation  Date, the Common Stock is designated for quotation on the
Principal Market and shall not have been suspended from trading on such exchange
or market (other than  suspensions of not more than one day and occurring  prior
to the Warrant  Cancellation Date due to business  announcements by the Company)
nor on each day during the period  beginning  on the first day of the  Measuring
Period (as  defined  below) and ending on the  Warrant  Cancellation  Date shall
delisting or suspension  by such  exchange or market been  threatened or pending
either  (A) in writing by such  exchange  or market or (B) by falling  below the
minimum  listing  maintenance  requirements  of such  exchange or market;  (iii)
during the  period  beginning  on the  Initial  Issuance  Date and ending on and
including the Warrant  Cancellation  Date,  there shall not have occurred (A) an
event   that  would   cause  the   Company  to  be  in  breach  of  any  of  its
representations,  warranties  or  covenants  as if the  Company  had  made  such
representation,  warranty  or  covenant  or any  such  date  or (B)  the  public
announcement  of a pending,  proposed or intended  Organic  Change,  unless such
pending,  proposed or intended Organic Change has been terminated,  abandoned or
consummated and the Company has publicly announced such termination, abandonment
or consummation of such Organic Change;  (iv) during the period beginning on the
Initial Issuance Date and ending on and including the Warrant Cancellation Date,
the Company shall have delivered unrestricted shares of Common Stock upon resale
of the

                                       5
<PAGE>

Common  Shares (as defined in the  Securities  Purchase  Agreement)  and Warrant
Shares upon exercise of the Warrants to the holders on a timely  basis;  (v) the
Company  shall have no knowledge  of any fact that would cause the  Registration
Statements  required  pursuant to the  Registration  Rights  Agreement not to be
effective  and  available  for  the  sale  of at  least  all of the  Registrable
Securities in accordance with the terms of the  Registration  Rights  Agreement;
(vi) the Company otherwise shall have been in material compliance with and shall
not  have  breached,   in  any  material  respect,   any  provision,   covenant,
representation   or  warranty  of  the  Securities   Purchase   Agreement,   the
Registration  Rights  Agreement and any of the  Warrants;  and (vii) the Closing
Sale Price for any 20 consecutive trading days (the "Measuring Period") is equal
to or greater  than  $12.00  (subject  to  adjustment  for stock  splits,  stock
dividends,  recapitalizations,  combinations,  reverse  stock  splits  or  other
similar events).

          2.  ADJUSTMENT  OF EXERCISE  PRICE AND NUMBER OF WARRANT  SHARES.  The
Exercise  Price and the number of Warrant  Shares shall be adjusted from time to
time as follows:

              (a) Upon  Subdivision  Or  Combination  Of  Common  Stock.  If the
Company at any time after the date of issuance of this  Warrant  subdivides  (by
any stock split,  stock  dividend,  recapitalization  or otherwise)  one or more
classes  of its  outstanding  shares of Common  Stock  into a greater  number of
shares,  the Exercise Price in effect immediately prior to such subdivision will
be   proportionately   reduced  and  the  number  of  Warrant   Shares  will  be
proportionately increased. If the Company at any time after the date of issuance
of this Warrant combines (by combination,  reverse stock split or otherwise) one
or more classes of its outstanding  shares of Common Stock into a smaller number
of shares,  the Exercise Price in effect  immediately  prior to such combination
will be  proportionately  increased  and the  number of Warrant  Shares  will be
proportionately  decreased.  Any adjustment under this Section 2(b) shall become
effective at the close of business on the date the  subdivision  or  combination
becomes effective.

              (b) Other  Considerations.  All calculations  under this Section 2
shall be made by the Company in good faith.

          3.  [Intentionally Omitted.]

          4.  ORGANIC    CHANGE.    Any     recapitalization,    reorganization,
reclassification, consolidation, merger, sale of all or substantially all of the
Company's assets to another Person or other  transaction,  in each case which is
effected  in such a way that  holders of Common  Stock are  entitled  to receive
securities or assets with respect to or in exchange for Common Stock is referred
to herein as an  "Organic  Change."  Subject to Section  4(k) of the  Securities
Purchase  Agreement,  prior  to the  consummation  of  any  (i)  sale  of all or
substantially  all of the Company's  assets to an acquiring Person or (ii) other
Organic  Change  following  which the  Company is not a  surviving  entity,  the
Company will secure from the Person purchasing such assets or the Person issuing
the securities or providing the assets in such Organic Change (in each case, the
"Acquiring Entity") a written agreement to deliver to the holder of this Warrant
in exchange for this Warrant,  a security of the Acquiring Entity evidenced by a
written instrument  substantially similar in form and substance to this Warrant.
In the event that an Acquiring Entity is directly or indirectly  controlled by a
company or entity  whose  common  stock

                                       6
<PAGE>

or similar  equity  interest  is listed,  designated  or quoted on a  securities
exchange or trading  market,  the holder of this Warrant may elect to treat such
Person as the Acquiring  Entity for purposes of this Section 4(b).  Prior to the
consummation of any other Organic Change,  the Company shall be required to make
appropriate  provision to ensure that the holder of this Warrant thereafter will
have the right to acquire  and receive in lieu of or in addition to (as the case
may be) the  shares of  Common  Stock  immediately  theretofore  acquirable  and
receivable upon the exercise of this Warrant  (without regard to any limitations
on the exercise of this Warrant  including  those set forth in Sections  1(e)(i)
and 1(e)(ii) of this Warrant),  such shares of stock,  securities or assets that
would have been issued or payable in such  Organic  Change with respect to or in
exchange  for the  number  of  shares  of Common  Stock  which  would  have been
acquirable  and  receivable  upon the exercise of this Warrant as of the date of
such Organic Change  (without  regard to any limitations on the exercise of this
Warrant  including  those set forth in  Sections  1(e)(i)  and  1(e)(ii) of this
Warrant).

          5.  NONCIRCUMVENTION. The Company hereby covenants and agrees that the
Company will not, by amendment of its  Certificate of  Incorporation  or through
any  reorganization,  transfer of assets,  consolidation,  merger,  dissolution,
issue or sale of securities,  or any other  voluntary  action,  avoid or seek to
avoid the  observance or  performance  of any of the terms of this Warrant,  and
will at all times in good faith carry out all the provisions of this Warrant and
take all action as may be  required  to protect the rights of the holder of this
Warrant.  Without limiting the generality of the foregoing, the Company (i) will
not  increase the par value of any shares of Common  Stock  receivable  upon the
exercise of this Warrant above the Exercise Price then in effect, (ii) will take
all such actions as may be necessary  or  appropriate  in order that the Company
may  validly and legally  issue  fully paid and  nonassessable  shares of Common
Stock upon the exercise of this  Warrant,  and (iii) will, so long as any of the
SPA  Warrants  are  outstanding,  take all action  necessary to reserve and keep
available  out of its  authorized  and  unissued  Common  Stock,  solely for the
purpose of  effecting  the exercise of the SPA  Warrants,  120% of the number of
shares of Common  Stock as shall  from time to time be  necessary  to effect the
exercise of the SPA Warrants then outstanding (without regard to any limitations
on  exercise)  in  accordance  with  Section  3(c)  of the  Securities  Purchase
Agreement.

          6 . WARRANT HOLDER NOT DEEMED A STOCKHOLDER. No holder, solely in such
Person's  capacity  as a holder,  of this  Warrant  shall be entitled to vote or
receive  dividends  or be deemed  the  holder of shares of the  Company  for any
purpose,  nor shall  anything  contained  in this Warrant be construed to confer
upon the holder  hereof,  solely in such  Person's  capacity as a holder of this
Warrant, any of the rights of a shareholder of the Company or any right to vote,
give or withhold  consent to any corporate  action (whether any  reorganization,
issue of stock, reclassification of stock, consolidation,  merger, conveyance or
otherwise),  receive  notice of  meetings,  receive  dividends  or  subscription
rights, or otherwise, prior to the issuance to the holder of this Warrant of the
Warrant  Shares  which such  Person is then  entitled  to  receive  upon the due
exercise of this Warrant.  In addition,  nothing contained in this Warrant shall
be  construed  as  imposing  any  liabilities  on such  holder to  purchase  any
securities  (upon  exercise of this Warrant or otherwise) or as a stockholder of
the  Company,  whether  such  liabilities  are  asserted  by the  Company  or by
creditors of the Company.

                                       7
<PAGE>

          7.  REISSUANCE OF WARRANTS.

              (a) Transfer of Warrant. If this Warrant is to be transferred, the
holder shall  surrender this Warrant to the Company,  whereupon the Company will
forthwith  issue and deliver  upon the order of the holder of this Warrant a new
Warrant (in  accordance  with Section  7(d)),  registered  as the holder of this
Warrant may  request,  representing  the right to purchase the number of Warrant
Shares  being  transferred  by the Holder and, if less then the total  number of
Warrant Shares then underlying this Warrant is being transferred,  a new Warrant
(in accordance with Section 7(d)) to the holder of this Warrant representing the
right to purchase the number of Warrant Shares not being transferred.

              (b) Lost, Stolen or Mutilated Warrant. Upon receipt by the Company
of  evidence  reasonably  satisfactory  to  the  Company  of  the  loss,  theft,
destruction  or mutilation of this Warrant,  and, in the case of loss,  theft or
destruction, of any indemnification undertaking by the holder of this Warrant to
the Company in form and substance  reasonably  acceptable to the Company and, in
the case of mutilation,  upon surrender and  cancellation  of this Warrant,  the
Company  shall  execute and  deliver to the Holder a new Warrant (in  accordance
with Section 7(d))  representing  the right to purchase the Warrant  Shares then
underlying this Warrant.

              (c) Warrant  Exchangeable for Multiple  Warrants.  This Warrant is
exchangeable,  upon the  surrender  hereof by the holder of this  Warrant at the
principal  office of the Company,  for a new Warrant or Warrants (in  accordance
with  Section  7(d))  representing  in the  aggregate  the right to purchase the
number of Warrant Shares then underlying this Warrant, and each such new Warrant
will  represent the right to purchase such portion of such Warrant  Shares as is
designated  by the  holder  of this  Warrant  at the  time  of  such  surrender;
provided,  however, that no Warrants for fractional shares of Common Stock shall
be given.

              (d) Issuance of New Warrants.  Whenever the Company is required to
issue a new Warrant pursuant to the terms of this Warrant,  such new Warrant (i)
shall be of like tenor with this Warrant, (ii) shall represent,  as indicated on
the face of such new  Warrant,  the right to purchase  the  Warrant  Shares then
underlying  this Warrant (or in the case of a new Warrant being issued  pursuant
to Section 7(a) or Section 7(c), the Warrant Shares  designated by the holder of
this  Warrant  which,  when  added to the  number  of  shares  of  Common  Stock
underlying the other new Warrants issued in connection with such issuance,  does
not exceed the number of Warrant Shares then  underlying  this  Warrant),  (iii)
shall have an issuance date, as indicated on the face of such new Warrant, which
is the same as the  Issuance  Date,  and (iv)  shall  have the same  rights  and
conditions as this Warrant.

          8.  NOTICES.  Whenever  notice  is  required  to be given  under  this
Warrant,  unless  otherwise  provided  herein,  such  notice  shall  be given in
accordance with Section 9(f) of the Securities Purchase  Agreement.  The Company
shall  provide  the holder of this  Warrant  with prompt  written  notice of all
actions  taken  pursuant  to this  Warrant,  including  in  reasonable  detail a
description  of such  action  and the  reason  therefor.  Without  limiting  the
generality of the foregoing,  the Company will give written notice to the holder
of this Warrant (i)  immediately  upon any  adjustment  of the  Exercise  Price,
setting forth in reasonable  detail,  and  certifying,  the  calculation of such
adjustment and (ii) at least fifteen days prior to the date on which the Company
closes  its  books  or  takes a  record  (A) with  respect  to any  dividend  or
distribution  upon the Common Stock,  (B) with respect to any grants,  issues or
sales of any  Options,  Convertible  Securities  or  rights to  purchase  stock,
warrants,  securities  or other  property to holders of

                                       8
<PAGE>

Common Stock or (C) for determining rights to vote with respect to any Change of
Control  (as  defined in the  Securities  Purchase  Agreement),  dissolution  or
liquidation,  provided in each case that such information shall be made known to
the public prior to or in  conjunction  with such notice being  provided to such
holder.

          9.  AMENDMENT AND WAIVER.  Except as otherwise  provided  herein,  the
provisions  of this  Warrant  may be amended and the Company may take any action
herein prohibited, or omit to perform any act herein required to be performed by
it, only if the Company has obtained  the written  consent of the holders of SPA
Warrants  representing  at  least a  majority  of the  shares  of  Common  Stock
obtainable upon exercise of the SPA Warrants then outstanding;  provided that no
such action may increase  the exercise  price of any SPA Warrant or decrease the
number of shares or class of stock  obtainable  upon exercise of any SPA Warrant
without the written  consent of the holder of this  Warrant.  No such  amendment
shall be effective to the extent that it applies to less than all of the holders
of the SPA Warrants then outstanding.

          10. GOVERNING  LAW.  This  Warrant  shall be construed and enforced in
accordance  with,  and all  questions  concerning  the  construction,  validity,
interpretation  and  performance  of this  Warrant  shall be  governed  by,  the
internal laws of the State of New York,  without  giving effect to any choice of
law or conflict of law  provision  or rule  (whether of the State of New York or
any other  jurisdictions)  that would cause the  application  of the laws of any
jurisdictions other than the State of New York.

          11. CONSTRUCTION; HEADINGS. This Warrant shall be deemed to be jointly
drafted by the Company and all the Purchasers and shall not be construed against
any  person  as the  drafter  hereof.  The  headings  of  this  Warrant  are for
convenience   of   reference   and  shall  not  form  part  of,  or  affect  the
interpretation of, this Warrant.

          12. DISPUTE  RESOLUTION.    In  the  case  of  a  dispute  as  to  the
determination of the Exercise Price or the arithmetic calculation of the Warrant
Shares,  the Company  shall submit the  disputed  determinations  or  arithmetic
calculations via facsimile within three Business Days of receipt of the Exercise
Notice  giving rise to such  dispute,  as the case may be, to the holder of this
Warrant.  If the holder of this Warrant and the Company are unable to agree upon
such  determination  or  calculation of the Exercise Price or the Warrant Shares
within  three  Business  Days  of  such  disputed  determination  or  arithmetic
calculation being submitted to the Holder,  then the Company shall,  within five
Business  Days submit via  facsimile,  by courier or in person (a) the  disputed
determination of the Exercise Price to an independent, reputable investment bank
selected by the Company  and  approved by the holder of this  Warrant or (b) the
disputed  arithmetic   calculation  of  the  Warrant  Shares  to  the  Company's
independent,  outside accountant. The Company shall cause the investment bank or
the  accountant,   as  the  case  may  be,  to  perform  the  determinations  or
calculations  and notify the Company and the Holder of the results no later than
ten  Business  Days from the time it receives  the  disputed  determinations  or
calculations.   Such  investment   bank's  or  accountant's   determination   or
calculation,  as the  case may be,  shall be  binding  upon all  parties  absent
demonstrable  error. The costs and expenses of such determination shall be borne
by the party whose  calculations were furthest from those of the investment bank
or  accountants  as the case may be as  determined  by such  investment  bank or
accountant, as the case may be.

                                       9
<PAGE>

          13. REMEDIES,  OTHER OBLIGATIONS,  BREACHES AND INJUNCTIVE RELIEF. The
remedies  provided in this Warrant  shall be  cumulative  and in addition to all
other remedies available under this Warrant,  the Securities Purchase Agreement,
the SPA Securities and the Registration  Rights  Agreement,  at law or in equity
(including a decree of specific performance and/or other injunctive relief), and
nothing  herein  shall  limit the right of the holder of this  Warrant  right to
pursue actual damages for any failure by the Company to comply with the terms of
this Warrant.  The Company  acknowledges  that a breach by it of its obligations
hereunder will cause irreparable harm to the holder of this Warrant and that the
remedy at law for any such  breach  may be  inadequate.  The  Company  therefore
agrees that, in the event of any such breach or threatened breach, the holder of
this Warrant shall be entitled,  in addition to all other available remedies, to
an injunction  restraining any breach, without the necessity of showing economic
loss and without any bond or other security being required.

          14. TRANSFER.   Subject to compliance  with any applicable  securities
laws,  this  Warrant  may be offered  for sale,  sold,  transferred  or assigned
without  the  consent of the  Company,  except as may  otherwise  be required by
Section 2(f) of the Securities Purchase Agreement.

          15. CERTAIN  DEFINITIONS.  For purposes of this Warrant, the following
terms shall have the following meanings:

          "Bloomberg" means Bloomberg Financial Markets.

          "Business Day" means any day other than Saturday,  Sunday or other day
on which  commercial banks in The City of New York are authorized or required by
law to remain closed.

          "Closing Bid Price" and "Closing Sale Price"  means,  for any security
as of any  date,  the last  closing  bid  price and last  closing  trade  price,
respectively,  for  such  security  on the  Principal  Market,  as  reported  by
Bloomberg,  or, if the Principal  Market begins to operate on an extended  hours
basis and does not  designate  the closing bid price or the closing trade price,
as the case may be, then the last bid price or last trade  price,  respectively,
of such security prior to 4:00:00 p.m., New York Time, as reported by Bloomberg,
or, if the Principal Market is not the principal  securities exchange or trading
market  for such  security,  the last  closing  bid price or last  trade  price,
respectively,  of such security on the principal  securities exchange or trading
market where such security is listed or traded as reported by  Bloomberg,  or if
the  foregoing  do not apply,  the last  closing bid price or last trade  price,
respectively,  of such security in the over-the-counter market on the electronic
bulletin board for such security as reported by Bloomberg, or, if no closing bid
price or last trade  price,  respectively,  is  reported  for such  security  by
Bloomberg,  the average of the bid prices, or the ask prices,  respectively,  of
any market  makers for such  security as  reported in the "pink  sheets" by Pink
Sheets LLC (formerly the National  Quotation  Bureau,  Inc.). If the Closing Bid
Price or the  Closing  Sale  Price  cannot be  calculated  for a  security  on a
particular  date on any of the  foregoing  bases,  the  Closing Bid Price or the
Closing Sale Price,  as the case may be, of such  security on such date shall be
the fair market value as mutually  determined by the Company and the Holder.  If
the  Company  and the Holder are unable to agree upon the fair  market  value of
such security,  then such dispute shall be resolved  pursuant

                                       10
<PAGE>

to Section 12. All such  determinations  to be  appropriately  adjusted  for any
stock  dividend,  stock split,  stock  combination or other similar  transaction
during the applicable calculation period.

          "Common Stock" means (i) the Company's  common stock, par value $0.001
per share,  and (ii) any capital  stock into which such Common  Stock shall have
been changed or any capital  stock  resulting  from a  reclassification  of such
Common Stock.

          "Convertible  Securities"  means any stock or  securities  (other than
Options) directly or indirectly  convertible into or exercisable or exchangeable
for Common Stock.

          "Expiration  Date"  means the date three (3) years  after the  Closing
Date (as defined in the Securities  Purchase  Agreement)  pursuant to which this
Warrant  was  initially  issued  or,  if such date  falls on a day other  than a
Business Day or on which trading does not take place on the Principal  Market (a
"Holiday"), the next date that is not a Holiday.

          "Options"  means any rights,  warrants or options to subscribe  for or
purchase Common Stock or Convertible Securities.

          "Person"  means  an  individual,   a  limited  liability   company,  a
partnership,  a  joint  venture,  a  corporation,  a  trust,  an  unincorporated
organization,  any other entity and a  government  or any  department  or agency
thereof.

          "Principal  Market" means the Nasdaq  National  Market or in the event
that the Company is no longer listed with the Nasdaq National Market, the market
or exchange on which the Common Stock is then listed and traded,  which only may
be The New York Stock Exchange,  Inc., the American Stock Exchange or The Nasdaq
SmallCap Market.

          "Registration Rights Agreement" means that certain registration rights
agreement between the Company and the Purchasers.

          "SPA  Securities"  means the shares of Common Stock issued pursuant to
the Securities Purchase Agreement.

                            [Signature Page Follows]

                                       11
<PAGE>

          IN WITNESS  WHEREOF,  the Company has caused this  Warrant to Purchase
Common Stock to be duly executed as of the Issuance Date set out above.

                                      VA SOFTWARE CORPORATION

                                      By:
                                         ---------------------------
                                         Name:  Ali Jenab
                                         Title: Chief Executive Officer

<PAGE>

                                                                       EXHIBIT A

                                 EXERCISE NOTICE

            TO BE EXECUTED BY THE REGISTERED HOLDER TO EXERCISE THIS
                        WARRANT TO PURCHASE COMMON STOCK

                             VA SOFTWARE CORPORATION

The undersigned holder hereby exercises the right to purchase  _________________
of the shares of Common Stock ("Warrant Shares") of VA Software  Corporation,  a
Delaware  corporation  (the  "Company"),  evidenced by the  attached  Warrant to
Purchase  Common Stock (the  "Warrant").  Capitalized  terms used herein and not
otherwise defined shall have the respective meanings set forth in the Warrant.

       1. Form of  Exercise  Price.  The  Holder  intends  that  payment  of the
Exercise Price shall be made as:

       _________ a "Cash Exercise" with respect to _________ Warrant Shares;
                 and/or

       _________ a "Cashless Exercise" with respect to _________ Warrant Shares.

       [Insert this paragraph (2) in the event that the holder has not elected a
Cashless  Exercise in accordance  with the terms of the Warrant as to all of the
Warrant Shares to be issued pursuant  hereto] 2. Payment of Exercise Price.  The
holder is hereby  delivering to the Company  payment in the amount of $_________
representing the Aggregate Exercise Price for such Warrant Shares not subject to
a Cashless Exercise in accordance with the terms of the Warrant.

       3.  Delivery of Warrant  Shares.  The Company shall deliver to the holder
__________ Warrant Shares in accordance with the terms of the Warrant.

To the extent the foregoing exercise is for less than the full number of Warrant
Shares issuable pursuant to the Warrant, a replacement Warrant  representing the
remainder of the Warrant Shares issuable (and otherwise of like form,  tenor and
effect) shall be delivered to holder.

Notwithstanding  anything to the contrary contained herein, this Exercise Notice
shall constitute a representation  by the holder of the Warrant  submitting this
Exercise Notice that,  after giving effect to the exercise  provided for in this
Exercise  Notice,  such  holder  (together  with its  affiliates)  will not have
beneficial  ownership  (together with the beneficial  ownership of such Person's
affiliates)  of a number of shares of Common  Stock which  exceeds  9.99% of the
total  outstanding  shares of Common Stock,  all as  determined  pursuant to the
provisions of Section 1(f)(i) of the Warrant.

Date: _______________ __, ______

________________________________
<PAGE>

 Name of Registered Holder

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

<PAGE>

                                 ACKNOWLEDGMENT

       The Company hereby  acknowledges  this Exercise Notice and hereby directs
[Transfer  Agent] to issue the above indicated  number of shares of Common Stock
in accordance with the Transfer Agent  Instructions dated November 6, 2003  from
the Company and acknowledged and agreed to by [Transfer Agent].

                                      VA SOFTWARE CORPORATION

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

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