EX-3 6 w1355516.txt LETTER AGREEMENT Exhibit 3 --------- NEUROGEN CORPORATION 35 Northeast Industrial Road Branford, Connecticut 06405 March 26, 2004 Warburg Pincus Private Equity VIII, L.P. 466 Lexington Avenue New York, NY 10017 Attention: Mr. Stewart Hen Andrew H. Tisch 2004 Annuity Trust #1 Daniel R. Tisch 2004 Annuity Trust #1 James S. Tisch 2004 Annuity Trust #1 Thomas J. Tisch 2004 Annuity Trust #1 667 Madison Avenue New York, NY 10021 Attention: Mr. Barry L. Bloom Baker Bros. Investments, L.P. Baker Bros. Investments II, L.P. Baker Biotech Fund I, L.P. Baker Biotech Fund II, L.P. Baker/Tisch Investments, L.P. Baker Biotech Fund II (Z), L.P. 667 Madison Avenue, 17th Floor New York, NY 10021 Attention: Mr. Leo Kirby Gentlemen: Reference is hereby made to the Securities Purchase Agreement, dated as of March 19, 2004 (the "SPA"), by and among Neurogen Corporation (the "Company") and the investors listed on the signature pages thereto (collectively, the "Investors"). Unless otherwise specified herein, capitalized terms shall have the meaning set forth in the SPA. Pursuant to Section 2.1(a) of the SPA, the Company and the Investors hereby agree to delete and replace Schedule 2.1 to the SPA in its entirety with the list attached hereto at Annex A. This letter agreement may be executed in one or more counterparts (including by facsimile), each of which shall be deemed an original and all of which together shall be considered one and the same agreement. [Remainder of Page Intentionally Left Blank.] If you are in agreement with the foregoing, please so indicate by singing and returning one copy of this letter agreement, which will constitute our agreement with respect to the matters set forth herein. Very truly yours, NEUROGEN CORPORATION By: /s/ Steve Davis ------------------------------ Name: Steve Davis Title: EVP & CBO ACCEPTED AND AGREED: WARBURG PINCUS PRIVATE EQUITY VIII, L.P. By: Warburg Pincus & Co., General Partner By: /s/ Stewart Hen ------------------------------ Name: Stewart Hen Title: Partner BAKER/TISCH INVESTMENTS, L.P. By: Baker/Tisch Capital, L.P., General Partner By: Baker/Tisch Capital (GP), LLC, General Partner By: /s/ Felix Baker, Ph.D. ------------------------------ Name: Felix Baker, Ph.D. Title: Managing Member -2- BAKER BROS. INVESTMENTS, L.P. By: Baker Bros. Capital, L.P., General Partner By: Baker Bros. Capital (GP), LLC, General Partner By: /s/ Felix Baker, Ph.D. ------------------------------ Name: Felix Baker, Ph.D. Title: Managing Member BAKER BROS. INVESTMENTS II, L.P. By: Baker Bros. Capital, L.P., General Partner By: Baker Bros. Capital (GP), LLC, General Partner By: /s/ Felix Baker, Ph.D. ------------------------------ Name: Felix Baker, Ph.D. Title: Managing Member BAKER BIOTECH FUND I, L.P. By: Baker Biotech Capital, L.P., General Partner By: Baker Biotech Capital (GP), LLC, General Partner By: /s/ Felix Baker, Ph.D. ------------------------------ Name: Felix Baker, Ph.D. Title: Managing Member -3- BAKER BIOTECH FUND II, L.P. By: Baker Biotech Capital II, L.P., General Partner By: Baker Biotech Capital II (GP), LLC, General Partner By: /s/ Felix Baker, Ph.D. ------------------------------ Name: Felix Baker, Ph.D. Title: Managing Member BAKER BIOTECH FUND II (Z), L.P. By: Baker Biotech Capital II, L.P., General Partner By: Baker Biotech Capital II (GP), LLC, General Partner By: /s/ Felix Baker, Ph.D. ------------------------------ Name: Felix Baker, Ph.D. Title: Managing Member ANDREW H. TISCH 2004 ANNUITY TRUST #1 /s/ Barry L. Bloom ------------------------------ Name: Barry L. Bloom Title: Attorney-in-Fact DANIEL R. TISCH 2004 ANNUITY TRUST #1 /s/ Barry L. Bloom ------------------------------ Name: Barry L. Bloom Title: Attorney-in-Fact -4- JAMES S. TISCH 2004 ANNUITY TRUST #1 /s/ Barry L. Bloom ------------------------------ Name: Barry L. Bloom Title: Attorney-in-Fact THOMAS J. TISCH 2004 ANNUITY TRUST #1 /s/ Barry L. Bloom ------------------------------ Name: Barry L. Bloom Title: Attorney-in-Fact cc: Milbank, Tweed, Hadley & McCloy LLP 1 Chase Manhattan Plaza New York, NY 10005 Attention: Robert B. Williams, Esq. Willkie Farr & Gallagher LLP 787 Seventh Avenue New York, NY 10019 Attention: Steven J. Gartner, Esq. Sullivan & Cromwell 125 Broad Street New York, NY 10004 Attention: Richard R. Howe, Esq. -5- Annex A ------- Schedule 2.1 ------------ SHARE PURCHASE -------------- INVESTOR NAME AND ADDRESS SHARES PRICE ------------------------- ------ ----- Warburg Pincus Private Equity VIII, L.P. 8,571,429 $60,000,003 466 Lexington Avenue New York, NY 10017 Facsimile: (212) 878-0850 Attention: Mr. Stewart Hen with a copy (which shall not constitute notice) to: Willkie Farr & Gallagher LLP 787 Seventh Avenue New York, NY 10019 Facsimile: (212) 728-9222 Attention: Steven J. Gartner, Esq. Andrew H. Tisch 2004 Annuity Trust #1* 267,858 $1,875,006 Daniel R. Tisch 2004 Annuity Trust #1* 267,858 $1,875,006 James S. Tisch 2004 Annuity Trust #1* 267,858 $1,875,006 Thomas J. Tisch 2004 Annuity Trust #1* 267,858 $1,875,006 -------------------------------------- ------- ---------- Total Tisch entities 1,071,432 $7,500,024 SHARE PURCHASE -------------- INVESTOR NAME AND ADDRESS SHARES PRICE ------------------------- ------ ----- Baker/Tisch Investments, L.P.** 203,935 $1,427,545 Baker Bros. Investments, L.P.** 170,762 $1,195,334 Baker Bros. Investments II, L.P.** 110,992 $776,944 Baker Biotech Fund I, L.P.** 1,915,924 $13,411,468 Baker Biotech Fund II, L.P.** 1,972,821 $13,809,747 Baker BioTech Fund II (Z), L.P.** 268,465 $1,879,255 --------------------------------- ------- ---------- Total Baker entities 4,642,899 $32,500,293 TOTAL: 14,285,760 $100,000,320 ------ -2- *Address/Notification Information: 667 Madison Avenue New York, NY 10021 Facsimile: (212) 521-2031 Attention: Mr. Barry L. Bloom with a copy (which shall not constitute notice) to: Sullivan & Cromwell LLP 125 Broad Street New York, NY 10004 Facsimile: (212) 558-3588 Attention: Richard R. Howe, Esq. **Address/Notification Information: 667 Madison Avenue, 17th Floor New York, NY 10021 Facsimile: (212) 521-2245 Attention: Mr. Leo Kirby with a copy (which shall not constitute notice) to: Sullivan & Cromwell LLP 125 Broad Street New York, NY 10004 Facsimile: (212) 558-3588 Attention: Richard R. Howe, Esq. -3-