Exhibit 10.4

 

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August 3, 2006

David M. Floyd, Ph.D.

Re:

 

Amendment to Severance Agreement dated December 2, 2004 and amended November 3,
2005
between Pharmacopeia Drug Discovery, Inc. (“Pharmacopeia”) and David M. Floyd
(the “Agreement”)

Dear Dr. Floyd:

Reference is made to the Agreement.

In consideration of your continued employment by Pharmacopeia, Pharmacopeia and
you hereby agree to amend and restate Section 3(a)  (Taxes—General) of the
Agreement in its entirety as follows:

Section 3(a)

“3.  TAXES.  (a)  General.  Employee will be responsible for the payment of any
tax liability incurred as a result of this Agreement.  The Company may withhold
tax on any payments or benefits provided to Employee as required by law or
regulation.  Notwithstanding anything herein to the contrary, if any payments
due under this Agreement would subject the Employee to any tax imposed under
Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”) if
such payments were made at the time otherwise provided herein, then the payments
that cause such taxation shall be payable in a single lump sum on the first day
which is at least six months after the date of the Employee’s “separation of
service” as set forth in Code Section 409A and the regulations issued
thereunder.”

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If you are in agreement with the terms of this letter agreement please sign
below and return one copy to my attention.

Very truly yours,

 

/s/ Leslie J. Browne, Ph.D.

 

Leslie J. Browne, Ph.D.

President and Chief Executive Officer

 

 

ACKNOWLEDGED, AGREED AND

ACCEPTED THIS 3RD DAY OF

AUGUST, 2006

 

 

/s/ David M. Floyd

 

David M. Floyd

Executive Vice President and

Chief Scientific Officer

 

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