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Exhibit 10.35  

 
 

CONSENT AND AGREEMENT    
  

        Consent And Agreement (this "Agreement") dated December 13, 2002 (the "Effective Date") is made by and
among American Cyanamid Company, 5 Giralda Farms, Madison, New Jersey 07940 ("ACY"), and Neurocrine Biosciences, Inc., 10555 Science Center Drive, San Diego, California 92121 ("Neurocrine"),
and DOV Pharmaceutical, Inc., 433 Hackensack Avenue, Hackensack, New Jersey 07601 ("DOV"). ACY, Neurocrine and DOV may each be referred to herein individually as a "Party" and collectively as
the "Parties". 

        WHEREAS, DOV and ACY entered into a License Agreement dated May 29, 1998 (as amended from time to time, the "License Agreement")
pursuant to which DOV was granted an exclusive license from ACY to the compound designated as CL 285,489 (the "Compound"); 

        WHEREAS, DOV and Neurocrine entered into a Sublicense Agreement dated June 30, 1998 (as amended from time to time, the "Sublicense
Agreement") pursuant to which DOV sublicensed to Neurocrine its rights under the License Agreement in the Patent Rights and Know-How (each as defined in the Sublicense Agreement) to, among
other things, make and sell the Licensed Product (as defined in the Sublicense Agreement). 

        WHEREAS, Neurocrine desires to further sublicense the rights sublicensed to it under the Sublicense Agreement; 

        WHEREAS, Neurocrine and DOV would now like to amend the Sublicense Agreement, and ACY and DOV would now like to amend the License
Agreement. 

        NOW THEREFORE in consideration of the foregoing, the promises, mutual covenants and obligations set forth below, and other good and
valuable consideration, the Parties agree as follows. 

1.    LICENSE AGREEMENT.  

	1.1
	Status of License Agreement. As of the Effective Date of this Agreement, each of ACY and DOV represents and warrants that the License
Agreement is in full force and effect. ACY acknowledges that it has consented to DOV's entry into the Sublicense Agreement and that ACY's right of first
refusal as set forth in Section 4.1 of the License Agreement does not apply to any additional sublicense agreements or the DOV Standby License (as defined below).

	1.2
	Amendment to Section 1.8. Section 1.8 of the License Agreement is hereby amended to read as follows:

	1.8
	"Net
Sales" means the gross amount invoiced for the Marketed Product sold by DOV and/or its Affiliates or its sublicensees (including any further sublicensees) less:

	(a)
	transportation
charges or allowances, if any, included in such price;

	(b)
	trade,
quantity or cash discounts, service allowances and broker's or agent's commissions, but not salaries, commissions, bonuses or other incentive pay to in-house sales
or other personnel, if any, allowed or paid;

	(c)
	credits
or allowances, if any, given or made on account of price adjustments, returns, bad debts, off-invoice promotional discounts, rebates, and any or all federal, state
or local government rebates whether in existence now or enacted at any time during the term of the Agreement (e.g., HCFA or Medicaid rebates), recalls, or destruction requested or made by an
appropriate government agency; and

	(d)
	any
tax, excise or governmental charge upon or measured by the sale, transportation, delivery or use of the Marketed Product, 

 

        provided, however, that in no event shall Net Sales be less than eighty percent (80%) of gross amount invoiced for the Marketed Product. 

        In
the case of discounts on "bundles" of products which include the Marketed Product, DOV, its Affiliates and its sublicensees (including further sublicensees) may, with notice to ACY,
calculate Net Sales as set forth above discounting the bona fide list price of the Marketed Product by the average percentage discount of all products of the selling party and/or its Affiliates or
sublicensees in a particular "bundle", calculated as follows: 

	 	 	                Average percentage	 	 
	 	 	discount on a	 	= (1-A/B) × 100
	 	 	particular "bundle"	 	 

        where
A equals the total discounted price of a particular "bundle" of products, and B equals the sum of the undiscounted bona fide list prices of each unit of every product in such
"bundle". DOV shall provide ACY documentation, reasonably acceptable to ACY, establishing such average discount with respect to each "bundle". Where the Marketed Product is also sold other than in
bundled form, the average discount as calculated above shall be applied to the undiscounted list price of the Marketed Products in the "bundle". If the Marketed Product is not sold separately and no
bona fide list price exists for the Marketed Product, the parties shall negotiate in good faith an imputed list price for the Marketed Product, and the average discount as calculated above with
respect thereto shall be applied to such imputed list price. 

	1.3
	Amendment to Section 6.5. Section 6.5 of the License Agreement is hereby amended to read as follows: 

        6.5
DOV shall keep and shall obligate its sublicensees to keep accurate and complete records of all sales of Marketed Product in accordance with generally accepted accounting principles
and practices. In any agreement between DOV and a third party, DOV shall obligate such third party to allow routine audits by ACY of such third party's records relating to the Marketed Product and
shall further require such third party to likewise obligate any additional third party that enters into an agreement with the third party relating to the Marketed Product to allow routine audits by
ACY of such additional third
party's records relating to the Marketed Product. ACY, no more than one time per calendar year for each of DOV or any third party so audited, may conduct, at its own expense, at reasonable times
during normal business hours, through an accountant designated by ACY and acceptable to DOV (and its sublicensees and their sublicensees, as appropriate), an audit of the accounts contemplated above,
as well as any supporting instruments and documents, and may make copies of and extracts from such records for the sole purpose of ascertaining or verifying the correctness of the amounts remitted by
DOV hereunder. Such accountant shall be required by DOV or any sublicensee to enter into a reasonably acceptable confidentiality agreement, and in no event shall such accountants disclose to ACY or
DOV any information other than information relating to or supporting the accuracy of the payments due from DOV hereunder (and, except to the extent necessary to support sales data using bundles, in no
event information that relates to products other than the Marketed Product). Each such audit shall be limited to the records and accounts pertaining to the year on which the audit is conducted and the
immediately preceding 5 calendar years. Results in the form of a report of such audit shall be made available by ACY to DOV and to any third party that is the subject of the audit. Should such audit
reveal any discrepancies between reports made by DOV or its sublicensees and the audit exceeding 5% in favor of DOV or any third party that is 

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audited, then DOV shall pay in full the costs of such audit requested by ACY; otherwise, ACY shall bear the costs in full for the audit of the records of DOV, its Affiliates, or its sublicensees. In
the event DOV, its Affiliates or sublicensees (including further sublicensees) conducts an audit of any sublicensee selling the Marketed Product, DOV shall provide or shall cause such Affiliate or
sublicensee to provide to ACY a copy of each audit report generated in connection therewith. 

2.    SUBLICENSE AGREEMENT.  

	2.1
	Status of Sublicense Agreement. As of the Effective Date of this Agreement, each of DOV and Neurocrine represent and warrant to each
other that the Sublicense Agreement is in full force and effect.

	2.2
	Amendment of Section 1.10. Section 1.10 of the Sublicense Agreement, is hereby amended to read as follows:

	1.10
	"Net
Sales" means the gross amount invoiced for the Licensed Product sold by Neurocrine or its Affiliate or its sublicensees (including any further sublicensees) less:

	(a)
	transportation
charges or allowances, if any included in such price;

	(b)
	trade,
quantity or cash discounts, service allowances and broker's or agent's commissions, but not salaries, commissions, bonuses or other incentive pay to in-house sales
or other personnel, if any, allowed or paid;

	(c)
	credits
or allowances, if any, given or made on account of price adjustments, returns, bad debts, off-invoice promotional discounts, rebates, and any or all federal, state
or local government rebates whether in existence now or enacted at any time during the term of the Agreement (e.g., HCFA or Medicaid rebates), recalls, or destruction requested or made by an
appropriate government agency; and

	(d)
	any
tax, excise of governmental charge upon or measured by the sale, transportation, delivery or use of the Licensed Product; 

provided, however, that in no event shall Net Sales of the Licensed Product be less than eighty percent (80%) of gross amount invoiced for the Licensed
Product. 

In
the case of discounts on "bundles" of products which include the Licensed Product, Neurocrine, its Affiliates or sublicensees (including, further sublicensees) may, with written notice to DOV and
ACY calculate Net Sales as set forth above after discounting the bona fide list price of the Licensed Product by the average percentage discount of all products of the selling party and/or its
Affiliates or sublicensees in a particular "bundle", calculated as follows: 

	 	 	                Average percentage	 	 
	 	 	discount on a	 	= (1-A/B) × 100
	 	 	particular "bundle"	 	 

        where
A equals the total discounted price of a particular "bundle" of products, and B equals the sum of the undiscounted bona fide list prices of each unit of every product in such
"bundle". The selling party shall provide DOV and ACY documentation, reasonably acceptable to DOV, establishing such average discount with respect to each "bundle". Where the Licensed Product is also
sold other than in bundled form, the average discount as calculated above shall be applied to the undiscounted list price of the Licensed Product in the "bundle". If the Licensed Product in a "bundle"
is not sold 

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separately and no bona fide list price exists for such product or the Licensed Product, DOV and Neurocrine shall negotiate in good faith an imputed list price for the Licensed Product, and the
average discount as calculated above with respect thereto shall be applied to such imputed list price. 

	2.3
	Amendment of Section 1.18. Section 1.18 of the Sublicense Agreement is amended to change the defined term Licensed
Product to read "Licensed Product" or "Marketed Product."

	2.4
	Amendment of Article 1. Article 1 of the Sublicense Agreement is amended by adding to the end thereof the following as
new Section 1.19:

	1.19
	"Commercially Reasonable Efforts" shall mean efforts and resources commonly used by a reasonable pharmaceutical company for a product
owned by it or to which it has rights, which product is at a similar stage in its development or product life and is of similar market potential taking into account efficacy, safety, regulatory
authority approved labeling, the competitiveness of alternative products in the marketplace, the patent and other proprietary position of the product, the likelihood or regulatory approval given the
regulatory structure involved, the profitability of the product, alternative products and other relevant factors. 

	2.5
	Amendment of Section 3.4. Section 3.4 of the Sublicense Agreement is hereby amended to read as set forth below:

	3.4
	Neurocrine shall use Commercially Reasonable Efforts to develop and commercialize the Marketed Product in all countries of the
Territory. In addition to the foregoing, if, prior to regulatory approval of a Licensed Product in the United States (a) Neurocrine terminates the R&D Program or halts all or otherwise fails to
conduct R&D Program activities directed toward development of the Marketed Product for approval in the United States for a period of 6 months or longer in the United States (for reasons other
than regulatory constraints), DOV shall have the right to terminate this Agreement within the entire Territory, effective upon Neurocrine's receipt of written notice of termination from DOV and
(b) if Neurocrine terminates the R&D Program with respect to any country or otherwise fails to conduct any development activities directed to any country, DOV may provide notice to Neurocrine
and Neurocrine will thereafter have 6 months to present to DOV a commercially reasonable plan for development activities with respect to such country. If Neurocrine fails within 30 days
to notify DOV that it intends to present such a plan or fails to present such a plan to DOV, DOV shall have the right to terminate this Agreement with respect to such country effective upon
30 days notice. In such event, DOV will be entitled to any payments previously paid to, or which have accrued to DOV. 

	2.6
	Amendment of Section 5.2. Section 5.2 of the Sublicense Agreement is hereby amended by adding the following at the end of
Section 5.2: "The parties acknowledge and agree that the Patent Rights and Know-How licensed pursuant to this Agreement justify royalty rates of differing amounts with respect to
sales of Licensed Products, which rates could be applied separately to in respect of the exercise of such Patent Rights and/or the incorporation of such Know-How, and that, if such
royalties were calculated separately, royalties relating to Patent Rights and royalties relating to Know-How would last for
different terms. Notwithstanding the foregoing, the parties have determined, for reasons of convenience, that blended royalty rates for the Patent Rights and the Know-How licensed
hereunder, as set forth above, will apply during a single royalty term, subject to adjustment only as set forth above in this Section 5.2." 

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3.    SUBLICENSES AND STANDBY LICENSES.  

	3.1
	Additional Sublicenses. In the event Neurocrine grants to any third party (a "Neurocrine
Sublicensee") a sublicense of any of the rights granted to it under the Sublicense Agreement or such rights are further sublicensed by any Neurocrine
Sublicensee or their sublicensees, Neurocrine shall provide to each of DOV and ACY or shall cause to be provided to each of DOV and ACY a copy of each agreement in which any such sublicense is granted
which copy may be redacted (with good cause shown including a statement of the nature of the redaction) with respect to certain information confidential to the Neurocrine Sublicensee but which will be
complete and accurate with respect to provisions regarding the license of the Patent Rights and Know-How, the development or commercialization of the Licensed Product (as such term is
defined in the Sublicense Agreement), calculation of payments in respect to Patent Rights and Know-How including fees, milestones and royalty payments (but not FTE rates for development
activities or detail costs included in sales force expenses,) and diligence requirements of the Neurocrine Sublicensee, (all of which information shall be held as confidential and used only for the
purpose of this Agreement) (each an "Additional Sublicense Agreement"), within ten (10) business days after such Additional Sublicense Agreement is signed by the parties thereto. Any such
sublicense shall require the prior written approval of each of DOV and ACY, provided, however, such approval shall not be required where the sublicensee
is any of the following large pharmaceutical companies and their wholly owned subsidiaries: Abbott Laboratories, Asahi Kasei Corporation, Aventis Pharmaceuticals, Inc., Bristol-Myers Squibb
Company, GlaxoSmithKline, Johnson & Johnson, Eli Lilly and Company, Merck & Co., Inc., Novartis Pharma AG, Pfizer Inc., Takeda Chemical Industries, Ltd., Yamanouchi
Pharmaceutical Co., Ltd. (each, an "Approved Sublicensee"). Neurocrine shall be responsible for and shall guarantee the performance of each Neurocrine Sublicensee to whom a sublicense is
granted. Neurocrine, upon ACY's or DOV's request, shall execute and deliver to each of ACY and DOV, a written document, in form and substance reasonably acceptable to each of ACY and DOV, representing
such guarantee.

	3.2
	Standby License to Neurocrine.

	(a)
	If,
during the term of the Sublicense Agreement, the License Agreement is terminated or otherwise ceases to be in effect for any reason other than (i) expiration thereof, or
(ii) an uncured breach thereof by DOV which results from an act or omission on the part of Neurocrine or any of Neurocrine's Affiliates or Approved Sublicensees which would constitute tortious
interference (any such termination of the License Agreement, a "Neurocrine Non-Defaulting Termination Event"), subject to Section 3.2(b)
below, ACY hereby grants to Neurocrine a direct license (with ACY assuming the rights and obligations of DOV as licensor) to the Compound and Licensed Product on the same terms and license grant
conditions as the Sublicense Agreement (which shall not include any payments made or obligations met by DOV prior to such direct license) including without limitation, a license with respect to Patent
Rights and Know-How (as such terms are defined in the Sublicense Agreement) (such license, the "ACY/Neurocrine Standby License"), which license shall be effective immediately (without the
need for need for notice to or action by any person) at any time that the License Agreement first terminates for reasons as set forth above in this Section 3.2(a) (such effective time of the
ACY/Neurocrine Standby License, the "First Effective Time"). DOV hereby consents to ACY's grant of such a license to Neurocrine, provided that such consent shall not reduce the exclusivity enjoyed by
DOV under the ACY Patents and ACY Know-How beyond that which such exclusivity with respect to the Patent Rights and Know-How with respect to the Licensed Product was reduced by
DOV's grant of rights to Neurocrine prior to the First Effective Time. Notwithstanding any provision to the contrary in this Article 3, in 

5

 

the
event that the sublicense of the Patent Rights and Know-How granted by DOV to Neurocrine under the Sublicense Agreement is terminated by either DOV or Neurocrine, in whole or in part,
for any reason, the license granted by ACY to Neurocrine under this Section 3.2(a) shall likewise be automatically terminated to the same extent. 

	(b)
	Following
the First Effective Time, the continuation of the ACY/ Neurocrine Standby License shall be subject to Neurocrine curing all breaches of the License Agreement that remain
uncured and are capable of cure by Neurocrine at the time the License Agreement was terminated within ten (10) business days of the effective date of such termination. If Neurocrine fails to
cure all such breaches within such time period, the ACY/Neurocrine Standby License shall automatically be terminated at the end of such ten (10) business day period following notice from ACY
and delineation of the uncured breaches, subject to the provisions of this Section 3. Except as set forth above in this Section 3.2(b), the licenses granted by ACY to Neurocrine under
Section 3.2(a) above shall be on the terms and conditions set forth in the Sublicense Agreement and ACY shall have all rights previously held by DOV thereunder. Following the First Effective
Time and for so long as the ACY/Neurocrine Standby License remains in effect, Neurocrine shall pay directly to ACY all royalty payments under the ACY/Neurocrine Standby License.

	(c)
	As
of the First Effective Time, upon the request of either ACY or Neurocrine, each of ACY and Neurocrine shall enter into a separate written agreement reflecting the licenses granted
under this Section 3.2 and the terms and conditions set forth in the Sublicense Agreement. 

	3.3
	DOV Standby License to an Approved Sublicensee. 

	(a)
	If
(i) Neurocrine enters into an Additional Sublicense Agreement with an Approved Sublicensee, and (ii) during the term of such Additional Sublicense Agreement the
Sublicense Agreement is terminated or otherwise ceases to be in effect for any reason other than (i) expiration thereof, or (ii) an uncured breach thereof by Neurocrine which breach
results from an act or omission on the part of any Approved Sublicensee or any of such Approved Sublicensee's Affiliates or sublicensees which would
constitute tortious interference (any such termination of the Sublicense Agreement, an "Approved Sublicensee Non-Defaulting Termination Event"), subject to Section 3.3(b) below, DOV
hereby grants to such Approved Sublicensee a direct sublicense to the Compound and the Licensed Product on the same terms and conditions as the Sublicense Agreement (which shall not include any
payments made or obligations met by Neurocrine prior to such direct license)(including without limitation a license with respect to the Patent Rights and Know-How (as defined in the
Sublicense Agreement)) (such license, the "DOV Standby License"), which license shall be effective immediately (without the need for notice to or action by any person) at any time that the Sublicense
Agreement first terminates for reasons as set forth above in this Section 3.3(a) (such effective time of the DOV Standby License, the "Second Effective Time"). Neurocrine hereby consents to
DOV's grant of such a license to such an Approved Sublicensee, provided that such consent shall not reduce the exclusivity enjoyed by Neurocrine under the Patent Rights and Know-How beyond
that which such exclusivity with respect to the Patent Rights and Know-How with respect to the Licensed Product was reduced by Neurocrine's grant of rights to the Approved Sublicensee
prior to the Second Effective Time.    Notwithstanding any provision to the contrary in this Article 3, in the event that the sublicense of the Patent Rights and
Know-How granted by Neurocrine to an Approved Sublicensee under the Additional Sublicense Agreement is terminated by either Neurocrine the Approved Sublicensee, in whole or in part with
respect to any country or countries, for any reason, 

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the
license granted by DOV to the Approved Sublicensee under this Section 3.2(a) shall likewise be automatically terminated to the same extent. 

	(b)
	Following
the Second Effective Time, the continuation of the DOV Standby License shall be subject to the Approved Sublicensee curing all outstanding breaches of the Sublicense
Agreement that remain uncured and capable of cure by the Approved Sublicensee at the time the Sublicense Agreement was terminated within ten (10) business days of the effective date of such
termination and notice from DOV and delineation of the uncured breaches. If the Approved Sublicensee fails to cure all such breaches within such time period, the license to be granted by DOV to the
Approved Sublicensee under Section 3.3(a) above shall automatically be terminated at the end of such ten (10) business day period. Except as set forth above in this
Section 3.3(b), the DOV Standby License shall be on the terms and conditions (which shall not include any payments made or obligations met by Neurocrine prior to such direct license) set forth
in the Sublicense Agreement and the Approved Sublicensee shall have all of the rights and obligations previously held by Neurocrine thereunder. Following the Second Effective Time and for so long as
the DOV Standby License remains in effect, the Approved Sublicensee shall pay directly to DOV all payments and other consideration due under the DOV Standby License. Neurocrine hereby acknowledges and
agrees that all amounts paid by the Approved Sublicensee pursuant to the DOV Standby License as well as the amounts referenced in the first sentence of this Section 3.3(b) shall be credited in
full against any sums due under the Additional Sublicense Agreement to which the Approved Sublicensee is a party. 

	3.4
	ACY Standby License to an Approved Sublicensee.
	(a)
	If
(i) Neurocrine enters into an Additional Sublicense Agreement with an Approved Sublicensee, and (ii) during the term of such Additional Sublicense Agreement the
ACY/Neurocrine Standby License Agreement is terminated, does not come into existence or otherwise ceases to exist for any reason other than (x) the expiration thereof, or (y) an uncured
breach thereof by Neurocrine which breach results from an act or omission on the part of any Approved Sublicensee or any of such Approved
Sublicensee's Affiliates or sublicensees which would constitute tortious interference (any such termination of the ACY/Neurocrine Standby License, an "Approved Sublicensee Non-Defaulting
Standby Termination Event"), then, subject to Section 3.4(b) below, ACY hereby grants to such Approved Sublicensee a direct license to the Compound and Licensed Product on the same terms as the
ACY/Neurocrine Standby License (which shall not include any payments made or obligations met by DOV or Neurocrine prior to such direct license) (including without limitation a license with respect to
the Patent Rights and Know-How (as such terms are defined in the Sublicense Agreement)) (such license, the "Second ACY Standby License"), which license shall be effective immediately
(without the need for notice to or action by any person) at any time that the ACY/Neurocrine Standby License first terminates, does not come into existence or otherwise ceases to be in effect for
reasons as set forth above in this Section 3.4(a) (such effective time of the Second ACY Standby License, the "Third Effective Time").    Neurocrine hereby consents to DOV's grant
of such a license to such an Approved Sublicensee, it being understood that such consent shall not reduce the exclusivity with respect to the Patent Rights and Know-How with respect to the
Licensed Product enjoyed by Neurocrine under the Patent Rights and Know-How beyond that which such exclusivity was reduced by Neurocrine's grant of rights to the Approved Sublicensee prior
to the Second Effective Time. Notwithstanding any provision to the contrary in this Article 3, in the event that the sublicense of the Patent Rights and Know-How granted by
Neurocrine to such Approved Sublicensee under the Additional Sublicense Agreement is terminated by either 

7

 

Neurocrine
or the Additional Sublicensee, in whole or in part with respect to any country or countries, for any reason, the license granted by ACY to the Approved Sublicensee under this
Section 3.4(a) shall likewise be automatically terminated to the same extent. 

	(b)
	In
the event of an Approved Sublicensee Non-Defaulting Standby Termination Event, the licenses to be granted by ACY to the Approved Sublicensee pursuant to
Section 3.4(a) above shall be subject to the Approved Sublicensee curing all outstanding breaches of the ACY/Neurocrine Standby License the License Agreement and the Sublicense Agreement that
remain uncured and capable of cure by the Approved Sublicensee at the time the ACY/Neurocrine Standby License was terminated within ten (10) business days of the effective date of such
termination and notice from ACY and delineation of the uncured breaches. If the Approved Sublicensee fails to cure such breach within such time period, the license to be granted by ACY to the Approved
Sublicensee under Section 3.4(a) above shall automatically be terminated at the end of such ten (10) business day period. Except as set forth above in this Section 3.4(b), the
licenses granted by ACY to the Approved Sublicensee under Section 3.4(a) above shall be on the terms and conditions set forth in the ACY/Neurocrine Standby License (which shall not include any
payments made or obligations met by Neurocrine or DOV prior to such direct license) and the Approved Sublicensee shall have all of the rights and obligations previously held by Neurocrine thereunder.
Following the Second Effective Time and for so long as the Second ACY Standby License remains in effect, the Approved Sublicensee shall pay directly to ACY all payments and other consideration due
under the Second ACY Standby License. Neurocrine hereby acknowledges and agrees that all amounts paid by the Approved Sublicensee pursuant to the Second ACY Standby License as well as the amounts
referenced in the first sentence of this Section 3.4(b) shall be creditable in full against any sums due under the Additional Sublicense Agreement to which the Approved Sublicensee is a party. 

	3.5
	Assumed Obligations. Notwithstanding any provision to the contrary in this Article 3, in no event shall ACY, in granting any of
the rights to Neurocrine under Section 3.2 hereof or ACY or DOV to an Approved Sublicensee under Section 3.3 or 3.4 hereof, have any obligations (other than the grant of
such licenses) over and above those obligations ACY has under the License Agreement or DOV has under the Sublicense Agreement, in each case as amended by this Agreement.

	3.6
	Notices. In the event either ACY or DOV provides to the other a notice of breach or of termination under the License Agreement, such
Party shall provide a copy of such notice to Neurocrine and to each Approved Sublicensee with whom Neurocrine has entered into an Additional License Agreement in accordance with the notice provisions
of this Agreement and any Direct License Agreement that may be entered into hereafter. In the event either DOV or Neurocrine provides to the other a notice of breach or of termination under the
Sublicense Agreement, such Party shall provide a copy of such notice to ACY and to each Approved Sublicensee with whom Neurocrine has entered into an Additional License Agreement in accordance with
the notice provisions of this Agreement and any Direct License Agreement that may be entered into hereafter. In the event either Neurocrine or any Approved Sublicensee provides to the other a notice
of breach or of termination under any Additional Sublicense Agreement, Neurocrine shall provide and, where the Approved Sublicensee is the party issuing the notice, shall cause the Approved
Sublicensee to provide a copy of such notice to each of ACY and DOV in accordance with the notice provisions of any Direct License Agreement that may be entered into hereafter. 

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4.    MISCELLANEOUS.  

	4.1
	Safety Agreement. Upon request of ACY or DOV, each of the Parties shall negotiate and enter into a Safety Agreement to address the
obligations of each of the Parties regarding the reporting of adverse events associated with the use of the Licensed Product. Neurocrine shall likewise obligate each of its Approved Sublicensees to
enter into such an agreement. The terms and conditions of any such safety agreement shall supercede any adverse event reporting obligations set forth in the License Agreement, the Sublicense Agreement
or any Additional Sublicense Agreement.

	4.2
	Notices. Any notices required hereunder shall be sent by registered or certified mail or by an equivalent service capable of
verification at the address stated below or such other address as to which the parties may provide in the future. 

Wyeth Pharmaceuticals  

	 	 	If to ACY:	 	 
	 	 	 	 	555 E. Lancaster Ave.

St. Davids, Pennsylvania 19087

Attn: Senior Vice President, Global Business Development
	

 	
 	

 	
 	

With a copy to:
	

 	
 	

 	
 	

Wyeth

5 Giralda Farms

Madison, New Jersey 07940

Attn: General Counsel
	

 	
 	

If to Neurocrine:	
 	

Neurocrine Biosciences, Inc.

10555 Science Center Drive

San Diego, California 92121

Attn: CEO

With copy: General Counsel
	

 	
 	

If to DOV:	
 	

DOV Pharmaceutical, Inc.

433 Hackensack Avenue

Hackensack, New Jersey 07601

Attn: CEO

With copy: General Counsel

	4.3
	Counterparts. This Agreement may be executed in any number of counterparts each of which shall be original and all originals of which
shall be deemed a single instrument.

	4.4
	Entire Agreement. This Agreement, together with the License Agreement and the Sublicense Agreement, each as amended hereby, represents
the full understanding between the Parties with respect to the subject matter hereof and cancels and supersedes any and all prior negotiations, correspondence, understandings and agreements, whether
oral or written, among the Parties respecting the subject matter hereof and thereof. Neurocrine shall not become a party to the License Agreement, nor ACY to the Sublicense Agreement, by reason of the
amendment thereto made hereby, and neither Neurocrine nor ACY shall have any right as a result of this Agreement to enforce any provision of the License Agreement or Sublicense Agreement. 

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	4.5
	No Assignment. This Agreement may not be assigned without the prior written consent of each Party hereto except in connection with the
successors of the entire business and assets of the respective Party hereto.

	4.6
	Independent Contractors. This Agreement shall not constitute any Party as the joint venturer, legal representative or agent of any
other Party hereto and no Party hereto shall have the right or authority to assume or create any obligation on the part of any other Party hereto.

	4.7
	Covenant. This Agreement shall inure to the benefit of any Approved Sublicensees. Each of the parties undertakes to execute and deliver
a Joinder Agreement in substantially the form annexed hereto as Exhibit A promptly (and in no event later than ten (10) business days) after notification by Neurocrine of the identity of
the specific Approved Sublicensee, whereupon the Approved Sublicensee shall be deemed to be a party to this Agreement as of the Effective Date to the extent set forth in the Joinder Agreement in the
form of Exhibit A hereto. In addition, each of the parties will take any actions including the execution of such additional documents and instruments as may be reasonably necessary to enable an
Approved Sublicensee to enforce its rights hereunder.

	4.8
	'621 Patent. Without limiting or expanding the definition of ACY Patents in the License Agreement or Patent Rights in the Sublicense
Agreement, the parties each acknowledge that patent US 6,399,621 (the "621 Patent) is an ACY Patent under the License Agreement and a Patent Right under the Sublicense Agreement. 

        IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed by their duly authorized representatives.

AMERICAN CYANAMID COMPANY  

By:

Title: 

NEUROCRINE BIOSCIENCES, INC.  

By:

Title: 

DOV PHARMACEUTICAL, INC.  

/s/  ROBERT HORTON      

By:        Robert Horton

Title:  Vice President 

10

  

EXHIBIT A  

[Letterhead
of Neurocrine Biosciences, Inc.] 

 
 

JOINDER AGREEMENT    
  

            ,
2002 

American
Cyanamid Company 

5
Giralda Farms 

Madison,
New Jersey 07940 

DOV
Pharmaceutical, Inc. 

433
Hackensack Ave. 

Hackensack,
New Jersey 07601 

	Re:
	Consent
and Agreement, dated December 13, 2002, Among American Cyanamid Company, Neurocrine Biosciences, Inc. and DOV Pharmaceutical, Inc. (the "Agreement") 

Ladies
and Gentlemen: 

        All
terms defined in the Agreement shall when used herein have their defined meanings. 

        Pursuant
to Section 3.1 of the Agreement, Neurocrine acknowledges that it has entered into an Additional Sublicense Agreement with [Name of Approved
Sublicensee] as an Approved Sublicensee. 

        By
this Joinder Agreement, Neurocrine agrees, and each signatory below also agrees, that [Name of Approved Sublicensee] shall be deemed to be a party to the
Agreement effective as of the Effective Date to the extent and solely to the extent that it and shall have all rights and obligations as an Approved Sublicensee under sections 1.1, 2.1, 3.1, 3.3, 3.4,
3.5, 3.6, and 4.1-4.7 of the Agreement. 

	

 	

Sincerely yours,
	

 	

NEUROCRINE BIOSCIENCES, INC.
	 	 
	 	By

 AGREED TO:  

[NAME
OF APPROVED SUBLICENSEE] 

By:

AMERICAN
CYANAMID COMPANY 

By:

DOV
PHARMACEUTICAL, INC. 

By:    /s/
Robert Horton

2

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Exhibit 10.36  

AMENDMENT OF DOV PHARMACEUTICAL, INC., 

CONVERTIBLE EXCHANGEABLE PROMISSORY NOTE  

        Amendment Agreement dated March    , 2003, among Elan Corporation plc ("Elan"), Elan International Services, Ltd. ("EIS"), Elan Pharma
International Limited ("EPIL"), DOV Pharmaceutical, Inc. ("DOV" or "Maker"), DOV Newco, Ltd. ("DOV Newco"), and Nascime Limited ("Nascime") 

        Whereas
Maker issued to EIS its convertible exchangeable promissory note dated January 21, 1999, in the principal amount of $8,010,000 (the "Note") in connection with a joint
venture transaction encompassing a securities purchase agreement between EIS and DOV ("SPA") and a joint development and operating agreement ("JDOA") among Elan, EIS, DOV, DOV Newco and Nascime, each
dated as of January 19, 1999; 

        Whereas
EIS subsequently transferred the Note to EPIL; 

        Whereas
pursuant to section 9(c) of the Note, Maker, EIS and EPIL wish to amend the Note and all parties wish to eliminate in the SPA and JDOA all references to the Newco Exchange
Right as defined in section 4 of the Note; 

        Now
therefore for good and sufficient consideration the parties agree as follows: 

	1.
	Exchange Right Eliminated

The
NewCo Exchange Right is eliminated, and section 4 and references direct and indirect and the corresponding phrases in which they appear, if any, in the Note including in section 2(a)
to an exchange
thereof for B Shares of Bermuda NewCo are deleted from the Note. In all other respects the Note shall continue unmodified in full force and effect. 

	2.
	Harmonization With SPA and JDOA

All
references in the SPA and JDOA (and any other agreement or documentation entered into or delivered as of January 19, 1999, in connection with such joint venture to which a party hereto is a
party) to the exchange feature of the Note and the consequences relating to its exercise including such references in section 5 of the SPA, sections 5.6, 7.1 and 7.5 of the JDOA and
section 4 (c) of the Note are eliminated in the case of such references and to be disregarded in the case of such consequences. 

	3.
	Status of Joint Venture; Funding

Elan
and EIS, on the one hand and DOV on the other, shall fund Nascime for the quarter ending December 31, 2002, which, based upon outstanding Nascime invoices therefor, require Elan and EIS to
make a net payment to Nascime in the amount of $2,820.18, which such amount is payable by Nascime to DOV. The parties to the JDOA shall continue discussions relating to the proposed reorganization of
Nascime and DOV NewCo going forward including, potentially, the increase in DOV's present equity interest in DOV Newco pursuant to section 6.4 of the JDOA or the license of rights to DOV by
Nascime pursuant to section 6.5 of the JDOA. 

	4.
	Warrant Issuance

Upon
execution hereof DOV and EIS shall enter into a warrant agreement in the form set forth as exhibit A. 

	5.
	Board Resolutions

Upon
execution hereof the board of directors of DOV shall adopt resolutions in the form set forth as exhibit B. 

	6.
	Waiver and Release

 

	(a)
	In
consideration of the terms set forth in this Amendment Agreement and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, with
effect from the effective date of this Amendment Agreement, DOV, DOV Newco and Nascime and each of their respective present and former officers, directors, stockholders, employees, agents, attorneys,
predecessors, successors, and assigns (collectively, "The DOV Group") hereby waives all rights and releases all claims that The DOV Group may have accrued against Elan, EIS and any of their Affiliates
(as defined in section 1.1 of the JDOA), and each of their respective present and former officers, directors, stockholders, employees, agents, attorneys, predecessors, successors and assigns of
the foregoing (collectively, "the Elan Releasees"), whether known or unknown, foreseen or unforeseen, fixed or contingent, of any nature whatsoever from the beginning of time to the effective date of
this Amendment Agreement, arising out of the performance by the Elan Releasees of any of their respective joint or several obligations under the JDOA and the License Agreement ("Elan License
Agreement") dated January 21, 1999 among Elan, Nascime and DOV provided, however, that claims or rights arising prior to the date of this Amendment Agreement under the following provisions
shall not be waived by DOV, and DOV expressly reserves and preserves its right to assert any and all such claims: Clauses 3, 6.4, 10, 11, 18 and 22 of the JDOA, and Clauses 11.1, 11.3, 11.6 and 11.7,
provided further that DOV's right to assert a claim under clause 11.3 shall be limited to a claim under Clause 11.1, of the Elan License Agreement.

	(b)
	In
consideration of the terms set forth in this Amendment Agreement and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, with
effect from the effective date of this Amendment Agreement, Elan and EIS, and each of their respective present and former officers, directors, stockholders, employees, agents, attorneys, predecessors,
successors, and assigns (collectively, "The Elan Group") hereby waives all rights and releases all claims that The Elan Group may have accrued against DOV, DOV Newco, and Nascime and any of their
Affiliates, and each of their respective present and former officers, directors, stockholders, employees, agents, attorneys, predecessors, successors and assigns of the foregoing (collectively, "the
DOV Releasees"), whether known or unknown, foreseen or unforeseen, fixed or contingent, of any nature whatsoever from the beginning of time to the effective date of this Amendment Agreement, arising
out of the performance by the DOV Releasees of any of their respective joint or several obligations under the JDOA and the License Agreement ("DOV License Agreement") dated January 21, 1999
among DOV, Nascime and Elan; provided, however, that claims or rights arising prior to the date of this Amendment Agreement under the following provisions shall not be waived by Elan, and Elan
expressly reserves and preserves its right to assert any and all such claims: Clauses 3, 6.5, 10, 11, 18 and 22 of the JDOA, and Clauses 11.1, 11.2, 11.3, 11.7 and 11.8, provided further that Elan's
right to assert a claim under clause 11.3 shall be limited to a claim under Clause 11.1, of the DOV License Agreement. 

	7.
	Representations and Warranties

        Each
party represents severally to each of the others as follows: 

	i.
	Organization. It is a corporation duly organized and validly existing under the laws of its jurisdiction
of organization and has all requisite corporate power and authority to carry on its respective business as presently conducted and to carry out the agreement contemplated hereby.

	ii.
	Authority.
It has full legal right, power and authority to enter into this Amendment Agreement and to perform its obligations hereunder, which have been
duly authorized and approved by all requisite corporate action. This Amendment Agreement is the valid and binding obligation of such party, enforceable against it in accordance with its terms. 

2

 

	iii.
	No Conflicts. The execution, delivery and performance by it of this Amendment Agreement will not
(i) violate any provision of applicable law, statute, rule or regulation applicable to such party or any ruling, writ, injunction, order, judgment or decree of any court, arbitrator,
administrative agency or other governmental body applicable to such party or any of its properties or assets or (ii) conflict with or result in any breach of any of the terms, conditions or
provisions of, or constitute (with notice or lapse of time or both) a default under the charter or organizational documents of such party or any agreement or understanding to which it or any affiliate
is a party by which it is bound.

	iv.
	Approvals. No permit, authorization, consent or approval of or by, or any notification of or filing
with, any person is required in connection with the delivery or performance of this Amendment Agreement by such party. 

	8.
	Notices

Any
notice required or sent hereunder shall be sent by registered or certified mail or by an equivalent service capable of verification at the address stated below or such other address as to which
the parties may provide in the future. 

	If to Elan:	 	Elan Corporation, plc

Lincoln House, Lincoln Place

Dublin 2, Ireland

Attn: Vice President, General Counsel
	

If to EIS:	
 	

Elan International Services, Ltd.

102 St. James Court

Flatts, Smiths Parish

Bermuda SL04

Attn: Director
	

If to EPIL:	
 	

Elan Pharma International Limited

Wil House Shannon Business Park

Shannon, Co. Clare Ireland

Attn: President
	

If to DOV:	
 	

DOV Pharmaceutical, Inc.

433 Hackensack Avenue

Hackensack, New Jersey 07601

Attn: CEO

With copy to: General Counsel

3

 

	

If to DOV Newco:	
 	

DOV Newco, Ltd.

Claredon House

2 Church Street

Hamilton, Bermuda

Attn: President
	

If to Nascime:	
 	

Nascime Limited

30 Herbert Street

Dublin 2, Ireland

Attn: Robert Heron

In witness whereof the parties have caused this Amendment Agreement to be executed by their duly authorized representatives intended to be legally bound. 

	 	 	Elan Corporation, plc
	

 	
 	

By:	

 Title:
	

 	
 	

Elan International Services, Ltd.
	

 	
 	

By:	

 Title:
	

 	
 	

Elan Pharma International Limited
	

 	
 	

By:	

 Title:
	

 	
 	

DOV Pharmaceutical, Inc.
	

 	
 	

By:	

 Arnold S. Lippa

Title: Chief Executive Officer
	

 	
 	

DOV Newco, Ltd.
	

 	
 	

By:	

 Title:
	

 	
 	

Nascime Limited
	

 	
 	

By:	

 Title:

4

   Exhibit A  

WARRANT AGREEMENT  

        Warrant Agreement effective as of the date set forth on the signature page hereof between DOV Pharmaceutical, Inc., a Delaware corporation (the "Company"),
and Elan International Services, Ltd. ("Holder") 

        Whereas
the Company has agreed to issue Holder warrants to purchase shares of the Company's common stock, par value $.0001 ("Common Stock"), for $10.00 per share; 

        Wheras
Holder has represented to the Company that referring to the Rights Plan (as defined in Exhibit B) there has been no change in Beneficial ownership by Elan and its
affiitates and associates since the Record Date (all terms as defined in the Rights Plan) other than pursuant to this Warrant Agreement. 

        Now,
therefore, the parties agree as follows: 

	1.
	Grant. Holder is granted the right ("Warrants") to purchase 75,000 shares of Common Stock at the Exercise Price (as defined in
Section 2), subject to adjustment as provided in Section 7, during the exercise period, which shall be the period commencing on the date hereof and ending at 5:30 p.m. Eastern
Standard Time on January 21, 2006 (the "Exercise Period").

	2.
	Exercise Price. The term "Exercise Price" shall mean $10.00 per share of Common Stock as may be adjusted from time to time pursuant to
Section 7.

	3.
	Warrant Certificate. The warrant certificate (the "Warrant Certificate") delivered pursuant to this agreement shall be in the form set
forth as Exhibit A with such appropriate amendments as required or permitted hereby.

	4.
	Exercise of Warrant. The Warrants are exercisable on solely one occasion at the Exercise Price and payable to the Company at its
executive offices located at 433 Hackensack Avenue, Hackensack, New Jersey 07601, attn: Chief Financial Officer (or such other officer designated to Holder by notice by the Company), by certified or
official bank check in New York Clearing House funds or wire transfer provided that at the election of Holder, the Warrants may be exercised on a cashless net issuance basis. Upon surrender of the
Warrant Certificate, submission of an executed Form of Election to Purchase in the form set forth as Exhibit B and payment of the Exercise Price, or election to exercise on a cashless net
issuance basis. Holder shall be entitled to receive a certificate for the shares of Common Stock so purchased.

	5.
	Issuance of Certificate. Upon the exercise of the Warrants the Company shall promptly issue to Holder a certificate for the shares of
Common Stock underlying the Warrant Certificate. Subject to this agreement, Holder shall be deemed the record holder of the shares of Common Stock on the date of exercise of the Warrant, irrespective
of the date of delivery of the Common Stock certificate.

	6.
	Registration Under Securities Act of 1933; Legend. Neither the Warrants nor the shares of Common Stock issuable upon exercise of the
Warrants have been registered under the Securities Act of 1933, as amended (the "Securities Act"), or any applicable state securities or blue sky laws. Upon exercise of the Warrants, the Company may
cause a legend, in substantially the form set forth below, to be placed on each certificate representing the shares of Common Stock issued: 

The
securities represented by this certificate have not been registered for public resale under the Securities Act of 1933, as amended ("Securities Act"), and may not be offered, transferred or sold
except (i) pursuant to an effective registration statement under the Securities Act and any applicable state securities or blue sky laws, (ii) to the extent applicable, pursuant to
Rule 144 

7

 

under the Securities Act (or any similar rule under the Securities Act relating to the disposition of securities) together with an opinion of counsel, if such opinion is reasonably satisfactory to
issuer, that such transfer is permitted or (iii) consistently with an opinion of counsel, if such opinion is reasonably satisfactory to issuer, that an exemption from registration under the
Securities Act and any applicable state securities or blue sky laws is available. 

	7.
	Adjustments to Exercise Price and Number of Securities

	(a)
	Recapitalization and Reclassification. In the event of any change in the Common Stock by reason of a stock dividend, stock split, split
up, recapitalization, combination, exchange of shares or similar transaction of such character that the shares of Common Stock are changed into or become exchangeable for a larger or smaller number of
shares, upon the effective date thereof the number of shares of Common Stock that Holder is entitled to purchase upon exercise of the Warrants shall be increased or decreased, as the case may be,
proportionate to the increase or decrease in the number of shares of Common Stock resulting from such transaction, and the Exercise Price shall be, in the case of an increase in the number of shares,
proportionately decreased and, in the case of a decrease in the number of shares, proportionately increased.

	(b)
	Sale; Merger; Consolidation. Upon a transfer or sale of all or substantially all the capital stock or assets of the Company or upon a
consolidation or merger of the Company (other than a consolidation or merger that does not result in any reclassification or change of the outstanding Common Stock), the transferee, purchaser or
entity formed by or surviving a consolidation or merger, as the case may be, shall execute and deliver to Holder a supplemental warrant agreement confirming that Holder shall have the right during the
Exercise Period to receive, upon exercise of the Warrants, the kind and amount of shares of stock and other consideration, if any, receivable upon such transfer, sale, consolidation or merger, as the
case may be, by a holder of the number of shares of Common Stock for which such Warrants could have been exercised (without regard to the commencement of the Exercise Period) on a cash or cashless net
issuance basis as elected by Holder, immediately prior to such transfer, sale, consolidation or merger. Such supplemental warrant agreement shall provide for adjustments that shall be identical to the
adjustments provided in this Section 7.

	(c)
	Cumulative Adjustments. No adjustment in the Warrant Price shall be required under this Section 4 until cumulative adjustments
result in a concomitant change of $0.05 or more of the Warrant Price or in the number of shares of Common Stock purchasable upon exercise of this Warrant as in effect prior to the last such
adjustment; provided, however, that any adjustment that by reason of this Section 4 is not required to be made shall be carried forward and taken into account in any subsequent adjustment. All
calculations under this Section 4 shall be made to the nearest cent.

	(d)
	Dividends and Other Distributions. If the Company declares a dividend or dividends payable in shares of Common Stock, including any
special dividend not distributed in the ordinary course of business, Holder shall be entitled to receive upon exercise of the Warrants, in addition to the number of shares of Common Stock as to which
the Warrant Certificate is exercised, such additional shares of Common Stock as Holder would have received had the Warrants been exercised immediately prior to the record date for such dividend, and
the Common Stock that would have been issuable thereupon held until such actual exercise. If the Company declares a dividend or dividends other than of Common Stock, Holder shall thereafter be
entitled to receive, in addition to the shares of Common Stock receivable upon the exercise thereof, upon the exercise of such Warrants, such non-Common Stock dividends as Holder would
have received, on a cash or cashless net issuance basis as elected by Holder, had the Warrants been 

8

 

exercised
immediately prior to the record date for the dividend, and the dividend that would have been issuable thereupon held until such actual exercise. 

	(e)
	Further Conforming Changes. If, as a result of an adjustment made pursuant to this Section 7, Holder upon exercise of the
Warrants becomes entitled to receive securities or assets other than as a dividend, wherever appropriate all references herein to shares of Common Stock shall be deemed to refer to and include such
other securities or assets and thereafter the number of such other securities or assets shall be subject to adjustment from time to time in a manner and upon terms as nearly equivalent as practicable
to those in this Section 7. 

	8.
	Issuance of New Warrant Certificate. Upon receipt by the Company of evidence reasonably satisfactory to it of a loss, theft, destruction
or mutilation of a Warrant Certificate, reimbursement by Holder to the Company of all incidental expenses and, in the case of loss, theft or destruction, receipt of indemnity or security from Holder
reasonably satisfactory to it or, in the case of mutilation, upon surrender and cancellation of the mutilated Warrant Certificate by Holder, the Company shall deliver a new Warrant Certificate to
Holder of like tenor in lieu thereof.

	9.
	Elimination of Fractional Interests. The Company shall not be required to issue a certificate representing a fraction of a share of
Common Stock or other securities upon the exercise of the Warrants and such fractional shares shall be eliminated.

	10.
	Reservation and Listing of Securities. The Company shall at all times reserve and keep available out of its authorized shares of Common
Stock, solely for the purpose of issuance upon the exercise of the Warrants, such number of shares of Common Stock as shall be issuable upon the exercise thereof and provide for their listing on any
exchange where the Common Stock is listed.

	11.
	Representations and Warranties. Holder represents and warrants to the Company that the Warrants are being acquired solely for Holder's
own account, for investment, not for the interest of any other and are not being acquired with a view to or for resale, distribution, assignment, subdivision or fractionalization thereof, and that
Holder has no present plans to enter into any contract, undertaking, agreement or arrangement for such purpose.

	12.
	No Vote by or Stockholder Notices to Warrant Holders. Nothing contained in this agreement shall be construed as conferring upon Holder
the right to vote, consent or receive notice as a stockholder in respect of any meetings of stockholders for the election of directors or any other matter, or as having any right as a stockholder of
the Company.

	13.
	Notices. Any notice or demand pursuant to this agreement shall be in writing and shall be deemed sufficiently given or made
(i) upon personal delivery, (ii) the day following delivery to a reputable overnight courier or (iii) three days following mailing by certified or registered mail, return receipt
requested, postage prepaid, and addressed, until the other party is notified of another address, as follows: 

	If to the Company:	 	 
	 	 	DOV Pharmaceutical, Inc.

433 Hackensack Avenue

Hackensack, New Jersey 07601

Attn: Robert Horton, General Counsel
	If to Holder:	 	 
	 	 	Elan International Services, Ltd.

102 St. James Court

Flatts, Smiths Parish

Bermuda SL04

Attn: Director

9

 
	14.
	Supplements and Amendments. This agreement may be amended or waived at any time only by the written agreement of the parties. Any
waiver, permit, consent or approval of kind or character on the part of each of Company or Holder of any provision of this agreement shall be in writing and effective only to the extent set forth in
such writing.

	15.
	Successors. This agreement shall be binding upon and inure to the benefit of the Company and Holder and their respective successors and
assigns hereunder.

	16.
	Governing Law; Submission to Jurisdiction. This agreement and each Warrant Certificate issued shall be deemed to be a contract made
under the laws of New York and for all purposes shall be construed in accordance with the laws thereof without giving effect to its rules governing conflicts of laws.

	17.
	Arbitration Relating to This Agreement. All controversies that may arise between Holder and the Company hereunder shall be determined
by arbitration conducted in New York, New York. Holder shall upon request by the Company agree to procedures designed to bind in the arbitration all holders of warrants. The arbitrator shall be
selected by agreement of the parties if such agreement can be reached within ten days after notice by either party or, if it cannot, by such agreement from a list of those arbitrators furnished to the
Company by the American Arbitration Association or, failing agreement
within ten days after receipt of such list, by selection of one of such arbitrators determined by the flip of a coin. The parties stipulate or stipulate to their understanding that

	(a)
	arbitration
is final and binding on the parties;

	(b)
	the
parties waive their right to seek remedies in court, including the right to a jury trial;

	(c)
	pre-arbitration
discovery is generally more limited than and different from court proceedings; and

	(d)
	the
arbitrator's award is not required to include factual findings or legal reasoning and each party's right to appeal or to seek modifications or rulings by the arbitrators is
strictly limited. 

Subject
to the arbitrator's decision that more time for the hearing is required, the hearing shall be concluded in one day, post-trial briefs shall be due within ten days thereafter,
briefs in answer or reply may be submitted only with the arbitrator's permission and the award (with or without an opinion, as determined by the arbitrator) shall be issued within ten days after
submission of final briefs. 

	18.
	Severability. If any provision of this agreement is held to be invalid or unenforceable, such invalidity or unenforceability shall not
affect any other provision.

	19.
	Captions. The caption headings of the sections of this agreement are for convenience of reference only and are not intended to be, nor
shall they be construed as, a part of this agreement and shall be given no substantive effect.

	20.
	Sole Beneficiaries of This Agreement. Nothing in this agreement shall be construed to give to any person or entity other than the
Company and Holder any legal or equitable right, remedy or claim hereunder, and this agreement shall be for the sole benefit of the Company and Holder.

	21.
	Counterparts. This agreement may be executed in any number of counterparts and each of such counterparts shall for all purposes be
deemed to be an original, and such counterparts shall together constitute but one document. 

[Signature Page to Follow]

10

 

        In
witness whereof, the parties hereto have caused this agreement to be duly executed, as of the date below. 

        Dated:
March    , 2003 

	 	 	DOV Pharmaceutical, Inc.
	

 	
 	

By:	

 Name: Arnold S. Lippa

Title: Chief Executive Officer
	

 	
 	

Elan International Services, Ltd.
	

 	
 	

By:	

 Name:

Title:

11

  

Exhibit A (to Warrant Agreement)  

 
 

FORM OF WARRANT CERTIFICATE    
  

THE
WARRANTS REPRESENTED BY THIS CERTIFICATE AND THE SHARES OF STOCK ISSUABLE UPON EXERCISE HEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), FOR
PUBLIC RESALE AND MAY NOT BE OFFERED, TRANSFERRED OR SOLD EXCEPT PURSUANT TO (i) AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES OR BLUE SKY
LAWS, (ii) RULE 144 UNDER THE SECURITIES ACT (OR ANY SIMILAR RULE UNDER THE SECURITIES ACT RELATING TO THE DISPOSITION OF SECURITIES) TO THE EXTENT APPLICABLE TOGETHER WITH AN OPINION OF
COUNSEL REASONABLY SATISFACTORY TO ISSUER THAT SUCH TRANSFER IS PERMITTED OR (iii) AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO ISSUER THAT AN EXEMPTION FROM REGISTRATION UNDER THE
SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES OR BLUE SKY LAWS IS AVAILABLE. 

THE
EXERCISE, TRANSFER AND EXCHANGE OF THE WARRANTS REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO THE WARRANT AGREEMENT BETWEEN DOV PHARMACEUTICAL, INC. AND HOLDER DATED AS OF MARCH
    , 2003. 

        This
Warrant Certificate certifies that Elan International Services Ltd. ("Holder"), is the registered holder of Warrants to purchase, at any time from the date of the warrant
agreement dated as of March    , 2003, between DOV Pharmaceutical, Inc. and Holder ("the Warrant Agreement"), until 5:30 p.m. Eastern Standard Time on January 21, 2006
("Expiration Date"), up to 75,000 fully-paid and non-assessable shares of common stock, par value $.0001 per share ("Common Stock"), of DOV Pharmaceutical, Inc. (the
"Company"), at an exercise price of $10.00 per share ("Exercise Price"), upon surrender of this Warrant Certificate, together with the attached Form of Election to Purchase, and
payment of the Exercise Price to the Company. Holder may elect to exercise this Warrant Certificate and receive a lesser number of shares of Common Stock on a cashless net issuance basis. 

        After
the Expiration Date all Warrants evidenced hereby, unless exercised prior thereto, shall be void. 

        The
Warrant Agreement is hereby incorporated by reference and made a part of this Warrant Certificate and is hereby referred to for a description of the rights, obligations, duties and
restrictions of the Company and holder of the Warrants. 

14

 

        In
witness whereof, the Company has caused this Warrant Certificate to be duly executed as of the date of the Warrant Agreement. 

	 	 	DOV PHARMACEUTICAL, INC.
	 	 	By:	 	  
 Name: Arnold S. Lippa

Title: Chief Executive Officer

15

Exhibit B (to Warrant Agreement)  

 
 

Form of Election to Purchase    
  

        The undersigned irrevocably elects to exercise the right represented by the attached Warrant Certificate to purchase 75,000 shares of Common Stock, par value
$.0001, of DOV Pharmaceutical, Inc.(a) at an exercise price of $10.00 per share and tenders in payment for such common stock a wire transfer payable in New York Clearing House Funds to the
order of DOV Pharmaceutical, Inc., in the amount of $750,000 or (b) at the election of the undersigned indicated below, instructs the company to deliver in lieu of such 75,000 shares,
such number thereof calculated on a cashless net issuance basis. 

	By:	 	    
 Name:

Title:	 	 	 	 	 	 	 	 
	

 	
 	

Election:    Cashless net issuance basis	
 	

Yes	
 	

 	
 	

 
	 	 	 	 	 	 	 	 	
	 	 

Exhibit B 

        WHEREAS,
DOV Pharmaceutical, Inc. (the "Corporation") is a party to that certain the Shareholder Rights Agreement dated as of October 8, 2002 (the "Rights Plan") between
the Corporation and Continental Stock & Transfer Trust Co., as Rights Agent (capitalized terms used but not otherwise defined herein have the meanings set forth in the Rights Plan); 

        WHEREAS,
in connection with the transactions contemplated by the Amendment of DOV Pharmaceutical, Inc. Convertible Exchangeable Promissory Note dated March    , 2003
(the "Note Amendment"), the Board of Directors of the Corporation (the "Board") deems it necessary and desirable and in the best interests of the Corporation to confirm the Board's and the
Corporation's interpretation of, and intent with respect to, the matters referenced below relating to the Rights Plan. 

        NOW,
THEREFORE, BE IT: 

        RESOLVED,
that, assuming no other changes in the Beneficial Ownership by Elan Corporation, plc and its Affiliates and Associates (collectively, "Elan") occurring since the Grandfathered
Time other than the transactions contemplated by the Note Amendment, the Beneficial Ownership by Elan, including the conversion into or exercise for Common Stock, of any of the following securities
shall not be deemed by the Board or the Corporation to cause Elan to become an Acquiring Person under the Rights Plan: 

	(1)
	354,643
shares of Series B Preferred Stock, par value $1.00 per share, of the Corporation (the "Series B Preferred Stock");

	(2)
	121,500
Warrants, dated January 1999, of the Corporation (the "Warrants");

	(3)
	U.S.$8,010,000
Convertible Exchangeable Promissory Note, dated January 1999, of the Corporation (the "Convertible Exchangeable Note"); and

	(4)
	U.S.$7,008,750
Convertible Promissory Note, dated January 1999, of the Corporation (the "Convertible Note"); and be it further 

        RESOLVED,
that, without limiting the generality of the foregoing, none of the following shall be deemed by the Board or the Corporation to cause Elan to become an Acquiring Person under
the Rights Plan: (i) the outstanding principal amount of the Convertible Note as of the date hereof, together with any increases in the outstanding principal amount of the Convertible Note as a
result of disbursements of funds there under; (ii) accrual of interest on, or its capitalization and addition to the outstanding principal of, the Convertible Exchangeable Note or the
Convertible Note; or (iii) adjustments to the conversion or exercise price of the Series B Preferred Stock, the Warrants, the Convertible Exchangeable Note or the Convertible Note
pursuant to the terms of the applicable governing documents as such terms exist as of the date hereof; and be it further 

        RESOLVED,
that, assuming no other changes in the Beneficial Ownership by Elan occurring since the Grandfathered Time other than the transactions contemplated by the Note Amendment, the
Board and the Corporation hereby confirm that the 75,000 Warrants, dated March 2003, of the Corporation issued to Elan fall within Elan's Grandfathered Percentage under the Rights Plan; and be
it further 

        RESOLVED,
that the officers of the Corporation be, and each of them hereby is, authorized and directed, for and on behalf of the Board and the Corporation, to prepare, execute and
deliver any such documents or instruments, and to take all such other actions, deemed necessary or appropriate or reasonably requested by Elan to confirm any of the foregoing matters to third parties. 

QuickLinks

FORM OF WARRANT CERTIFICATE

Form of Election to Purchase

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