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| S | ANNUAL      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934 |
|---|------------------------------------------------------------------------------------------------|

| £ | TRANSITION      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934 |
|--------|----------------------------------------------------------------------------------------------------|

| Delaware                                                            | 77-0397908                                               |
|---------------------------------------------------------------------|----------------------------------------------------------|
| (State      or other jurisdiction of incorporation or organization) | (IRS      Employer Identification Number)                |
|                                                                |                                                     |
| 3100      Central Expressway                                        |                                                     |
| Santa      Clara, California 95051                                  | (408)      764-2000                                      |
| (Address      of principal executive offices including zip code)    | (Registrant's      telephone number, including areacode) |

| Class:                              | Name      of each exchange on which registered: |
|-------------------------------------|-------------------------------------------------|
| Common      Stock, $0.001 Par Value | NASDAQ      Global Select Market                |

| o | Large      accelerated filer   | S      | Accelerated      filer | o      | Non-accelerated      filer (Do not check if a smaller reporting company) |
|---|--------------------------------|--------|------------------------|--------|--------------------------------------------------------------------------|
| o | Smaller      Reporting Company |   |                   |   |

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OF CONTENTS

| ITEM   |                                                                                                | PAGE   |
|--------|-----------------------------------------------------------------------------------------------------|--------|
|   |                                                                                                |   |
|   | Part      III                                                                                       |   |
|   |                                                                                                |   |
| 10.    | Directors, Executive Officers and Corporate      Governance                                         | 4      |
| 11.    | Executive Compensation                                                                              | 6      |
| 12.    | Security Ownership of Certain Beneficial Owners and Management      and Related Stockholder Matters | 24     |
| 13.    | Certain Relationships and Related Transactions and Director      Independence                       | 27     |
| 14.    | Principal Accounting Fees and Services                                                              | 29     |
|   |                                                                                                |   |
|   |                                                                                                |   |
|   | Signatures                                                                                          | 30     |

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EXECUTIVE OFFICERS 

| Name                          |   | Age |   | First      Became a Director |   | Principal      Occupation /Position      Held with us                                         |
|-------------------------------|--------|-----|--------|------------------------------|--------|-----------------------------------------------------------------------------------------------|
| Isy      Goldwasser(1)        |   | 38  |   | 2007                         |   | Chief      Executive Officer                                                                  |
| David      C. Hill(2)         |   | 61  |   | 2007                         |   | Former      President and CEO, Sun Chemical Corporation                                       |
| Chris      van Ingen(3)       |   | 61  |   | 2008                         |   | Former      President, Bio-Analytical Measurement business of Agilent Technologies,      Inc. |
| Steven      D. Goldby(4)      |   | 68  |   | 1998                         |   | Executive      Chairman                                                                       |
| Timothy      Harkness(5)      |   | 41  |   | 2008                         |   | Former      Senior Vice President and CFO, Nektar Therapeutics,Inc.                           |
| Kenneth      J. Nussbacher(6) |   | 55  |   | 1995                         |   | Fellow,      Affymetrix, Inc.                                                                 |
| Mario      M. Rosati(7)       |   | 61  |   | 1994                         |   | Partner,      Wilson Sonsini Goodrich & Rosati                                            |
| Bruce      Pasternack(8)      |   | 60  |   | 2007                         |   | Venture      Partner, CMEA Ventures                                                           |

| (1) | Appointed      to the Board effective July 2,2007. |
|-----|----------------------------------------------------|

| (2) | Appointed      to the Board effective August 30,2007. |
|-----|-------------------------------------------------------|

| (3) | Appointed      to the Board effective March 18,2008. |
|-----|------------------------------------------------------|

| (4) | Steven      D. Goldby became our Executive Chairman effective June 12,      2007. |
|-----|-----------------------------------------------------------------------------------|

| (5) | Appointed      to the Board effective March 18,2008. |
|-----|------------------------------------------------------|

| (6) | On      April 15, 2008, Mr. Nussbacher informed us that he would not be standing      for reelection at the AnnualMeeting. |
|-----|----------------------------------------------------------------------------------------------------------------------------|

| (7) | On      April 15, 2008, Mr. Rosati informed us that he would not be standing for      reelection at the Annual Meeting. |
|-----|-------------------------------------------------------------------------------------------------------------------------|

| (8) | Appointed      to the Board effective June 29, 2007.  Mr. Pasternack is the      nominee for election for a three-year term expiring at the 2011 Annual      Meeting of Stockholders. The Board appointed Mr. Pasternack      as  lead independent director on April 23,  2008. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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C

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| Similarly      sized Peer Group:                     | Broad      Bay Area Peer Group:                     |
|------------------------------------------------------|-----------------------------------------------------|
| ·         Accelrys               | ·         Adobe                 |
| ·         Advent                 | ·         Affymetrix            |
| ·         Connetics              | ·         Cypress               |
| ·         Cubist Pharmaceuticals | ·         Dionex                |
| ·         DSP Group              | ·         Gilead Sciences, Inc. |
| ·         eResearch Technology   | ·         Hyperion              |
| ·         Exelixis               | ·         Juniper               |
| ·         InterMune              | ·         Openwave              |
| ·         Neurocrine Biosciences | ·         Protein Design Labs   |
| ·         Quality Systems        | ·         Sybase                |
| ·         Tessera                | ·         VeriSign              |
| ·         Trident Microsystems   |                                                |

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|   | • | base      salary; |
|--------|---------|-------------------|

|   | • | short-term      cash incentive awards; |
|--------|---------|----------------------------------------|

|   | • | discretionary      cash bonuses to reward exemplary effort and achievement;    and |
|--------|---------|------------------------------------------------------------------------------------|

|   | • | equity      incentive awards. |
|--------|---------|-------------------------------|

|   | • | market      data provided by Compensia discussedabove; |
|--------|---------|--------------------------------------------------------|

|   | • | internal      review of each executive’s compensation, both individually and relative to      other executive officers; and |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------|

|   | • | individual      performance of the executive. |
|--------|---------|-----------------------------------------------|

|   | · | Steven      D. Goldby – Mr. Goldby’s annual base salary in 2006 was      $400,000.  Effective January 1, 2007, Mr. Goldby’s salary was      increased by 5% to $420,000.  The increase was largely based      upon adjustments to reflect cost of living increases and his contributions      to achieving our strategic objectives.   Effective June 12,      2007, Mr. Goldby stepped down as our Chief Executive Officer and became      our Executive Chairman.  In connection with this change, Mr.      Goldby’s annual base salary was reduced to $250,000.  His base      salary as a part-time employee was a direct reflection of his continued      importance to achieving our strategic objectives in his new      role.  Effective January 1, 2008, Mr. Goldby’s annual base      salary was further reduced to $150,000 as he further reduced the amount of      time he spent in his capacity as our part-time employee and focused on his      duties as Executive Chairman. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | · | W.      Henry Weinberg – Dr. Weinberg’s annual base salary in 2006 was      $400,000.  His salary was increased by 5% to $420,000 effective      January 1, 2007.  The increase was largely based upon      adjustments to reflect cost of living increases and his contributions to      achieving our strategic objectives and the Compensation Committee’s desire      to keep Dr. Goldberg’s base salary consistent with Mr. Goldby’s base      salary as discussed above.  On January 8, 2008, Mr. Weinberg      ceased to be an executive officer and became a part-time      employee.  As a result of this change, his base salary was      decreased to $252,000.  His base salary as a part-time employee      is a direct reflection of his continued importance to achieving our      strategic objectives in his new role as our Chief Scientific Officer, but      has been adjusted on a proportional basis to reflect his part-time      status. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Isy      Goldwasser – Mr. Goldwasser’s annual base salary in 2006 was      $375,000.  Effective January 1, 2007, Mr. Goldwasser’s salary      was increased by 12% to $420,000.  The increase was largely      based upon adjustments to reflect cost of living increases and his      contributions to achieving our strategic objectives and the Compensation      Committee’s desire to keep Mr. Goldwasser’s base salary consistent with      the base salaries paid to Mr. Goldby and Dr. Weinberg as discussed      above.  In connection with Mr. Goldby’s transition to Executive      Chairman, Mr. Goldwasser became our Chief Executive Officer effective June      12, 2007.  No change was made to Mr. Goldwasser’s base salary at      that time as his base salary then in effect was consistent with the salary      paid to Mr. Goldby in his role as Chief Executive Officer.  No      further adjustments have been made in 2008 to Mr. Goldwasser’s base salary      compensation. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Jeryl      L. Hilleman – Ms. Hilleman’s annual base salary in 2006 was      $330,000.  Effective January 1, 2007, Ms. Hilleman’s salary      increased by 6% to $350,000.  The increase was largely based      upon adjustments to reflect cost of living increases and a review of      market data provided by Compensia regarding compensation paid to chief      financial officers for companies in the technology and life sciences      industries in the Bay Area.  Ms. Hilleman resigned effective      June 1, 2007. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Richard      Boehner – Mr. Boehner joined us in April 2007 as our Executive Vice      President, Chemicals and Energy.  Based on negotiations with Mr.      Boehner in connection with his hire, his base salary was set at      $300,000.  In November 2007, Mr. Boehner was promoted to      President of Symyx Research.  However, as his compensation was      in line with the compensation paid to our other business unit presidents,      no change was made in his base salary.  Due to the strong      business development component of Mr. Boehner’s position, the Compensation      Committee put greater emphasis on the incentive component of his      compensation package, as described below.  As a result, Mr.      Boehner’s base compensation is slightly less than the base compensation      paid to Mr. Campbell.  No adjustments have been made in 2008 to      Mr. Boehner’s base salarycompensation. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Timothy      E. Campbell – Mr. Campbell joined us in February 2007 as President of      Symyx Software.  Based on negotiations with Mr. Campbell in      connection with his hire, his base salary was set at $260,400. With the      acquisition of MDL Information Systems, Inc. in October 2007 and the      resulting increase in Mr. Campbell’s responsibilities, Mr. Campbell’s      annual base salary was raised to $310,000, effective November 1,      2007.  No further adjustments have been made in 2008 to Mr.      Campbell’s base salarycompensation. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Rex      S. Jackson – Mr. Jackson joined us in February 2007 as our Executive Vice      President and General Counsel.  Based on negotiations with Mr.      Jackson in connection with his hire, his base salary was set at $300,000.      He became our acting Chief Financial Officer effective June 1, 2007 and      the Board formally appointed Mr. Jackson as our Chief Financial Officer on      October 16, 2007.  Effective as of his appointment as Chief      Financial Officer, Mr. Jackson resigned as our General      Counsel.  As a result of his new responsibilities, Mr. Jackson’s      annual base salary was raised to $330,000 effective November 1, 2007. No      further adjustments have been made in 2008 to Mr. Jackson’s base salary      compensation. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Name                        |   | Salary      % at plan |
|-----------------------------|--------|-----------------------|
| Steven      D. Goldby(1)    |   | —               |
| Jeryl      L. Hilleman(2)   |   | —               |
| Isy      Goldwasser(3)      |   | 65                    |
| W.      Henry Weinberg      |   | 65                    |
| Richard      Boehner(4)     |   | 100                   |
| Timothy      E. Campbell(5) |   | 50                    |
| Rex      Jackson            |   | 65                    |

| (1) | Effective      June 12, 2007, Mr. Goldby stepped down as our Chief Executive Officer and      was no longer eligible to receive payments under the Bonus      Plan. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Ms.      Hilleman resigned effective June 1,2007. |
|-----|---------------------------------------------------|

| (3) | Effective      January 1, 2008, Mr. Goldwasser’s salary percentage was reset at 75% at      plan to reflect his role as chief executive officer and the      Compensation Committee’s desire to move towards a larger percentage of      compensation being incentive-based. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | Mr.      Boehner was guaranteed a cash incentive payment equal to 662⁄3% of his base      salary for 2007.  In future years, Mr. Boehner  was      eligible to receive up to 100% of his base salary if our financial      performance is consistent with our operating plan for the year and up to      150% if our financial performance exceeds our operating plan for the      year.  Effective January 1, 2008, Mr. Boehner’s salary      percentage was reset at 65% at plan  to bring him in line with      the other executive officers, other than Mr.  Goldwasser. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5) | Prior      to the acquisition of MDL Information Systems, Inc. (“MDL) in October      2007, Mr. Campbell was not an executive officer.  As a result,      Mr. Campbell’s salary percentage for 2007 for determination of his cash      incentive payment was less than the percentage specified for our other      executive officers. Effective January 1, 2008, Mr. Campbell’s salary      percentage was reset at 65% at plan to bring him in line with the      other executive officers, other than Mr.  Goldwasser. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| ·         Revenue                                                             | ·         Cash flow                        |
|---------------------------------------------------------------------------------------------------|----------------------------------------------------------------|
| ·         Gross margin                                                        | ·         Relative or absolute share price |
| ·         Operating income or margin                                          | ·         Return on equity                 |
| ·         Earnings before interest, taxes, depreciation and      amortization | ·         Return on assets                 |
| ·         Pre-tax profit                                                      | ·         Return on investments            |
| ·         Net income                                                          | ·         Economic value added             |
| ·         Pro forma net income                                                | ·         Market share                     |
| ·         Earnings per share                                                  | ·         Increase in share price          |
| ·         Total stockholder return                                            | ·         Expenses                         |

|                   | Minimum                              |   | Target                                            |   | Maximum                        |
|------------------------|--------------------------------------|--------|---------------------------------------------------|--------|--------------------------------|
| 2007      Revenue      | $133      million up to $135 million |   | greater      than $135 million up to $140 million |   | greater      than $140 million |
| 2007      Non-GAAP EPS | $0.38      up to $0.40               |   | greater      than $0.40 up to $0.43               |   | greater      than $0.43        |

| Total      Score                         |   |   | 0 |   |   |   | 25    |   |   |   | 50    |   |   |   | 100 |   |   |   | 150 |   |
|------------------------------------------|--------|--------|---|--------|--------|--------|-------|--------|--------|--------|-------|--------|--------|--------|-----|--------|--------|--------|-----|--------|
| Bonus      as a Percentage of Salary (1) |   |   | 0 | %      |   |   | 16.25 | % (2)  |   |   | 32.50 | % (3)  |   |   | 65  | % (4)  |   |   | 100 | % (5)  |

| (1)  | Based      upon the salary as in effect at the end of the fiscal  year. |
|-----------|-------------------------------------------------------------------------|
| (2)  | Mr.      Campbell was eligible to receive 12.5% of his base    salary.  |
| (3)  | Mr.      Campbell was eligible to receive 25% of his base    salary.    |

| (4)   | Mr.      Boehner  was eligible to receive 100% of his base salary      and      Mr. Campbell was eligible to receive 50% of his base      salary. |
|------------|--------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5) | Mr.      Boehner  was eligible to receive 150% of his base      salary. |
|-----|------------------------------------------------------------------------------|

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| Name      and Principal Position                                    |   | Year   |   | Salary      ($) |    |   | Bonus      ($) |   |    | Stock      Awards ($)(1) |   |   | Option      Awards ($)(1) |   |   | Non-Equity      Incentive Plan Compensation ($)(2) |    |   | All      Other Compensation ($)(3) |   |    | Total      ($) |   |
|---------------------------------------------------------------------|--------|--------|--------|-----------------|---------|--------|----------------|--------|---------|--------------------------|--------|--------|---------------------------|--------|--------|----------------------------------------------------|---------|--------|------------------------------------|--------|---------|----------------|--------|
| Steven D. Goldby                                          |   | 2006   |   | $               | 400,000 |   |           | $      | — |                     |   | $      | 806,575                   |   |   | $                                                  | — |   |                               | $      | 225,000 |           |   | $ | 4,400 |   |   | $ | 1,435,975 |   |
| Executive      Chairman and Former Chief Executive Officer(4)       |   | 2007   |   | $               | 324,129 |   |           | $      | — |                     |   | $      | 648,606                   |   |   | $                                                  | — |   |                               | $      | — |           |   | $ | 5,051 |   |   | $ | 977,786 |   |
|                                                                |   |   |   |            |    |   |           |   |    |                     |   |   |                      |   |   |                                               |    |   |                               |   |    |           |   |   |   |   |   |   |   |   |
| Jeryl L. Hilleman                                         |   | 2006   |   | $               | 330,000 |   |           | $      | — |                     |   | $      | 659,925                   |   |   | $                                                  | — |   |                               | $      | 185,000 |           |   | $ | 4,400 |   |   | $ | 1,179,325 |   |
| Former      Executive Vice President and Chief Financial Officer(5) |   | 2007   |   | $               | 147,159 |   |           | $      | — |                     |   | $      | 531,775                   |   |   | $                                                  | — |   |                               | $      | — |           |   | $ | 449,594 |   |   | $ | 1,128,527 |   |
|                                                                |   |   |   |            |    |   |           |   |    |                     |   |   |                      |   |   |                                               |    |   |                               |   |    |           |   |   |   |   |   |   |   |   |
| Isy Goldwasser                                                 |   | 2006   |   | $               | 375,000 |   |           | $      | — |                     |   | $      | 806,575                   |   |   | $                                                  | — |   |                               | $      | 211,000 |           |   | $ | 4,400 |   |   | $ | 1,396,975 |   |
| Chief      Executive Officer(6)                                     |   | 2007   |   | $               | 420,000 |   |           | $      | 73,500  |                     |   | $      | 648,606                   |   |   | $                                                  | 32,760  |   |                               | $      | 136,500 |           |   | $ | 5,051 |   |   | $ | 1,316,417 |   |
|                                                                |   |   |   |            |    |   |           |   |    |                     |   |   |                      |   |   |                                               |    |   |                               |   |    |           |   |   |   |   |   |   |   |   |
| W. Henry Weinberg                                         |   | 2006   |   | $               | 400,000 |   |           | $      | — |                     |   | $      | 806,575                   |   |   | $                                                  | — |   |                               | $      | 225,000 |           |   | $ | 142,400 |   |   | $ | 1,573,975 |   |
| Executive      Vice President and Chief Technical Officer           |   | 2007   |   | $               | 420,000 |   |           | $      | — |                     |   | $      | 648,606                   |   |   | $                                                  | — |   |                               | $      | 136,500 |           |   | $ | 143,051 |   |   | $ | 1,348,157 |   |
|                                                                |   |   |   |            |    |   |           |   |    |                     |   |   |                      |   |   |                                               |    |   |                               |   |    |           |   |   |   |   |   |   |   |   |
| Richard      Boehner                                                |   | 2007   |   | $               | 225,000 |   |           | $      | — |                     |   | $      | 90,912                    |   |   | $                                                  | 16,380  |   |                               | $      | 150,000 |           |   | $ | 61,006 |   |   | $ | 543,298 |   |
| President,      Symyx Research(7)                                   |   |   |   |            |    |   |           |   |    |                     |   |   |                      |   |   |                                               |    |   |                               |   |    |           |   |   |   |   |   |   |   |   |
|                                                                |   |   |   |            |    |   |           |   |    |                     |   |   |                      |   |   |                                               |    |   |                               |   |    |           |   |   |   |   |   |   |   |   |
| Timothy      E. Campbell                                            |   | 2007   |   | $               | 231,223 |   |           | $      | 100,000 |                     |   | $      | 109,207                   |   |   | $                                                  | 19,656  |   |                               | $      | 77,500  |           |   | $ | 4,954 |   |   | $ | 542,540 |   |
| President,      Symyx Software(8)                                   |   |   |   |            |    |   |           |   |    |                     |   |   |                      |   |   |                                               |    |   |                               |   |    |           |   |   |   |   |   |   |   |   |
|                                                                |   |   |   |            |    |   |           |   |    |                     |   |   |                      |   |   |                                               |    |   |                               |   |    |           |   |   |   |   |   |   |   |   |
| Rex      S. Jackson,                                                |   | 2007   |   | $               | 267,831 |   |           | $      | 175,000 |                     |   | $      | 414,704                   |   |   | $                                                  | 19,656  |   |                               | $      | 107,250 |           |   | $ | 4,954 |   |   | $ | 989,395 |   |
| Executive      Vice President and Chief Financial Officer(9)        |   |   |   |            |    |   |           |   |    |                     |   |   |                      |   |   |                                               |    |   |                               |   |    |           |   |   |   |   |   |   |   |   |

| (1) | Represents      the proportionate amount of the total fair value of the stock and option      awards recognized by us as an expense in 2007 and 2006, respectively, for      financial accounting purposes, disregarding for this purposes the estimate      of forfeitures related to service-based vesting conditions. The fair value      of these awards and the amounts expensed in 2007 and 2006, respectively,      were determined in accordance with Financial Accounting Standards Board      Statement of Financial Accounting Standards No. 123 (revised 2004)      Share-Based Payments (FAS 123R). See Note 4 to our combined and      consolidated financial statements for the year ended December 31, 2006      contained in our Annual Report on Form 10-K for the year ended December      31, 2007 and 2006, respectively, for a discussion of all assumptions made      in connection with the computation of these  values. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Represents      payments made under our 2006 and 2007 Cash Bonus Plans for Executive      Officers. |
|-----|-----------------------------------------------------------------------------------------------------|

| (3) | Includes      perquisites and tax reimbursements/gross-ups outlined in the table      below.  Also includes premiums paid for group life insurance and      matching contributions by us to a 401(k) qualified retirement plan      (subject to a maximum of $4,500 per employee for 2007 and $4,400 per      employee for 2006). |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Name                   |   | Year |   | Housing      Allowance |    |   | Relocation      Expense |   |   | Tax      Reimbursements/Gross-ups |   |
|------------------------|--------|------|--------|------------------------|---------|--------|-------------------------|--------|--------|-----------------------------------|--------|
| W.      Henry Weinberg |   | 2006 |   | $                      | 138.000 |   |                    | __     |   |                              | __     |   |
|                   |   | 2007 |   | $                      | 138,000 |   |                    | __     |   |                              | __     |   |
| Richard      Boehner   |   | 2007 |   | $                      | 21,962  |   |                    | $      | 15,000 |                              |   | $ | 23,639 |   |

|   |   |
|--------|--------|

| (4) | Effective      June 12, 2007, Mr. Goldby stepped down as our Chief Executive Officer and      became our Executive Chairman.  In connection with this change,      Mr. Goldby’s annual base salary changed from $400,000 to      $250,000.  Effective January 1, 2008, Mr. Goldby’s annual base      salary was further reduced to$150,000. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5) | Ms.      Hilleman resigned effective June 1, 2007. Pursuant to the terms of her      severance arrangement, she received 15 months of salary and seven months      of COBRA reimbursement, for an aggregate amount of      $449,358.  Ms. Hilleman’s severance payments are reflected in      amounts set forth under the column entitled “Other      Compensation.” |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (6) | Mr.      Goldwasser became our Chief Executive Officer effective June 12,      2007. |
|-----|--------------------------------------------------------------------------------------|

| (7) | Mr.      Boehner joined us in April 2007 as our Executive Vice      President, Chemicals and Energy, and was appointed President of Symyx      Research in November 2007. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (8) | Mr.      Campbell joined us in February 2007.  Effective November 1,      2007, Mr. Campbell’s annual base salary was raised from $260,400 to      $310,000. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (9) | Mr.      Jackson joined us in February 2007 as our Executive Vice President and      General Counsel.  He became our acting Chief Financial Officer      effective June 1, 2007.  The Board appointed Mr. Jackson as our      Chief Financial Officer on October 16, 2007.  Effective as of      his appointment as Chief Financial Officer, Mr. Jackson resigned as our      General Counsel.  Mr. Jackson’s annual base salary was raised      from $300,000 to $330,000 effective November 1,  2007. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                        |   |            |   | Estimated      Future Payouts Under Non-Equity Incentive Plan    Awards(1) |    |   | All      Other Stock Awards: Number of Shares of Stock or Units      (#) |   |    | All      Other Option Awards: Number of Securities Underlying Options      (#) |   |   | Exercise      or Base Price of Option Awards ($/Sh) |   |       | Grant      Date Fair Value of Stock and Option Awards(2) |   |
|-----------------------------|--------|-----------------|--------|----------------------------------------------------------------------------|---------|--------|--------------------------------------------------------------------------|--------|---------|--------------------------------------------------------------------------------|--------|--------|-----------------------------------------------------|--------|------------|----------------------------------------------------------|--------|
| Name                        |   | Grant      Date |   | Threshold      ($)                                                         |    |   | Target      ($)                                                          |   |    | Maximum      ($)                                                               |   |   |                                                |   |       |                                                     |   |   |   |
| Steven D. Goldby  |   |            |   |                                                                       |    |   |                                                                     |   |    |                                                                           |   |   |                                                |   |       |                                                     |   |   |   |   |   |   |   |
| 2007      Plan              |   | 2/12/2007       |   |                                                                       |    |   |                                                                     |   |    |                                                                           |   |   |                                                | 64,600 |       |                                                     |   |   |   |   |   |   | $ | 1,160,216 |   |
| 2007      Plan              |   | 2/12/2007       |   |                                                                       |    |   |                                                                     |   |    |                                                                           |   |   |                                                | 32,300 | (3)   |                                                     |   |   |   |   |   |   | $ | 580,108 |   |
| Jeryl L. Hilleman |   |            |   |                                                                       |    |   |                                                                     |   |    |                                                                           |   |   |                                                |   |       |                                                     |   |   |   |   |   |   |   |   |   |
| 2007      Plan              |   | 2/12/2007       |   |                                                                       |    |   |                                                                     |   |    |                                                                           |   |   |                                                | 53,000 |       |                                                     |   |   |   |   |   |   | $ | 951,880 |   |
| 2007      Plan              |   | 2/12/2007       |   |                                                                       |    |   |                                                                     |   |    |                                                                           |   |   |                                                | 26,500 |       |                                                     |   |   |   |   |   |   | $ | 475,940 |   |
| Isy Goldwasser         |   |            |   |                                                                       |    |   |                                                                     |   |    |                                                                           |   |   |                                                |   |       |                                                     |   |   |   |   |   |   |   |   |   |
| 2007      Plan              |   | 2/12/2007       |   |                                                                       |    |   |                                                                     |   |    |                                                                           |   |   |                                                | 32,300 | (3)   |                                                     |   |   |   |   |   |   | $ | 580,108 |   |
| 2007      Plan              |   | 2/12/2007       |   |                                                                       |    |   |                                                                     |   |    |                                                                           |   |   |                                                | 64,600 |       |                                                     |   |   |   |   |   |   | $ | 1,160,216 |   |
| 2007      Plan              |   | 11/2/2007       |   |                                                                       |    |   |                                                                     |   |    |                                                                           |   |   |                                                |   |       |                                                     |   | 200,000 |   |   | $ | 8.58 |   |   | $ | 655,200 |   |
| Bonus      Plan             |   | 2/12/2008       |   | $                                                                          | 68,250  |   |                                                                     | $      | 273,000 |                                                                           |   | $      | 420,000                                             |   |       |                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| W. Henry Weinberg |   |            |   |                                                                       |    |   |                                                                     |   |    |                                                                           |   |   |                                                |   |       |                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 2007      Plan              |   | 2/12/2007       |   |                                                                       |    |   |                                                                     |   |    |                                                                           |   |   |                                                |   |       |                                                     | 32,300 | (3)   |   |   |   |   |   |   |   |   |   | $ | 580,108 |   |
| 2007      Plan              |   | 2/12/2007       |   |                                                                       |    |   |                                                                     |   |    |                                                                           |   |   |                                                |   |       |                                                     | 64,600 |   |   |   |   |   |   |   |   |   |   | $ | 1,160,216 |   |
| Bonus      Plan             |   | 2/12/2008       |   | $                                                                          | 68,250  |   |                                                                     | $      | 273,000 |                                                                           |   | $      | 420,000                                             |   |       |                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Richard Boehner        |   |            |   |                                                                       |    |   |                                                                     |   |    |                                                                           |   |   |                                                |   |       |                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 2007      Plan              |   | 2/12/2007       |   |                                                                       |    |   |                                                                     |   |    |                                                                           |   |   |                                                |   |       |                                                     | 22,564 |   |   |   |   |   |   |   |   |   |   | $ | 250,009 |   |
| 2007      Plan              |   | 11/2/2007       |   |                                                                       |    |   |                                                                     |   |    |                                                                           |   |   |                                                |   |       |                                                     |   |   |   |   | 100,000 |   |   | $ | 8.58 |   |   | $ | 327,600 |   |
| Bonus      Plan             |   | 2/12/2008       |   | $                                                                          | 150,000 |   |                                                                     | $      | 225,000 |                                                                           |   | $      | 337,500                                             |   |       |                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Timothy      Campbell       |   |            |   |                                                                       |    |   |                                                                     |   |    |                                                                           |   |   |                                                |   |       |                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 2007      Plan              |   | 2/12/2007       |   |                                                                       |    |   |                                                                     |   |    |                                                                           |   |   |                                                |   |       |                                                     | 14,116 |   |   |   |   |   |   |   |   |   |   | $ | 260,017 |   |
| 2007      Plan              |   | 11/2/2007       |   |                                                                       |    |   |                                                                     |   |    |                                                                           |   |   |                                                |   |       |                                                     |   |   |   |   | 120,000 |   |   | $ | 8.58 |   |   | $ | 393,120 |   |
| Bonus      Plan             |   | 2/12/2008       |   | $                                                                          | 38,750  |   |                                                                     | $      | 155,000 |                                                                           |   | $      | 310,000                                             |   |       |                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Rex      Jackson            |   |            |   |                                                                       |    |   |                                                                     |   |    |                                                                           |   |   |                                                |   |       |                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 2007      Plan              |   | 2/16/2007       |   |                                                                       |    |   |                                                                     |   |    |                                                                           |   |   |                                                |   |       |                                                     | 53,000 |   |   |   |   |   |   |   |   |   |   | $ | 987,390 |   |
| 2007      Plan              |   | 11/2/2007       |   |                                                                       |    |   |                                                                     |   |    |                                                                           |   |   |                                                |   |       |                                                     |   |   |   |   | 120,000 |   |   | $ | 8.58 |   |   | $ | 393,120 |   |
| 2007      Plan              |   | 2/16/2007       |   |                                                                       |    |   |                                                                     |   |    |                                                                           |   |   |                                                |   |       |                                                     | 26,500 | (3)   |   |   |   |   |   |   |   |   |   | $ | 493,695 |   |
| Bonus      Plan             |   | 2/12/2008       |   | $                                                                          | 53,625  |   |                                                                     | $      | 214,500 |                                                                           |   | $      | 330,000                                             |   |       |                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

| (1) | Reflects      payments expected as of December 31, 2007 to be made in February 2008      under our 2007 Cash Incentive Plan for services rendered in 2007 (the      Summary Compensation Table above shows the cash actually paid      out).  See Compensation Discussion and Analysis above for a      complete description of the non-equity incentive plan awards and the      performance criteria on which such payments were based.  There      are no set thresholds (or equivalent items) with respect to payouts under      the Bonus Plan. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)        | Represents      the estimated fair value of the award as of the applicable grant date,      determined in accordance with FAS 123(R), whereas the amounts shown under      the column entitled “Option Awards” in the Summary Compensation Table      above reflects the dollar amount recognized for financial statement      reporting purposes with respect to the 2007 fiscal year.  See      Note 4 to our combined and consolidated financial statements for the year      ended December 31, 2007 contained in our Annual Report on Form 10-K for      the year ended December 31, 2007 for a discussion of the valuation      assumptions made in connection with the computation of these      values. |
|------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (3)   | Performance-based      restricted stock units that did not vest were therefore      terminated.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |

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Table of Contents

|                     |   | Option      Awards                                                     |    |   | Stock      Awards (7)                                                    |   |
|--------------------------|--------|------------------------------------------------------------------------|---------|--------|--------------------------------------------------------------------------|--------|
| Name                     |   | Number      of Securities Underlying Unexercised Options(#)Exercisable |    |   | Number      of Securities Underlying Unexercised Options(#)Unexercisable |   |   | Equity      Incentive Plan Awards: Number of Securities Underlying Unexercised      Options(#) |   |   | Option      Exercise Price($) |   |   | Option      Expiration Date(#) |   |   | Number      of Shares or Units of Stock That Have Not Vested($) |   |   | Market      Value of Shares or Units of Stock That Have Not Vested($) |   |   | Equity      Incentive Plan Awards: Number of Unearned Shares, Units or Other      Rights That Have NotVested |   |   | Equity      Incentive Plan Awards: Market or Payout Value of Unearned Shares,      Units or Other Rights That Have NotVested |   |
| Steven      D. Goldby(1) |   |                                                                   | — |   |                                                                     |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 64,600 | (3) |   | $ | 496,128 |   |   |   | — |   |   |   |   |
|                     |   |                                                                   | 8,888   | (1)    |                                                                     |   | — |   |   |   | — |   |   | $ | 0.96 |   |   | 1/4/2009 |   |   |   | — |   |   |   | — |   |   |   |   |   |   |   |   |
|                     |   |                                                                   | 50,000  | (1)    |                                                                     |   | — |   |   |   | — |   |   | $ | 12.00 |   |   | 10/21/2009 |   |   |   | — |   |   |   | — |   |   |   |   |   |   |   |   |
|                     |   |                                                                   | 216,724 | (1)    |                                                                     |   | — |   |   |   | — |   |   | $ | 57.00 |   |   | 2/28/2010 |   |   |   | — |   |   |   | — |   |   |   |   |   |   |   |   |
|                     |   |                                                                   | 50,000  | (1)    |                                                                     |   | — |   |   |   | — |   |   | $ | 25.50 |   |   | 1/11/2011 |   |   |   | — |   |   |   | — |   |   |   |   |   |   |   |   |
|                     |   |                                                                   | 50,000  | (1)    |                                                                     |   | — |   |   |   | — |   |   | $ | 25.00 |   |   | 6/18/2011 |   |   |   | — |   |   |   | — |   |   |   |   |   |   |   |   |
|                     |   |                                                                   | 50,000  | (1)    |                                                                     |   | — |   |   |   | — |   |   | $ | 16.70 |   |   | 3/1/2012 |   |   |   | — |   |   |   | — |   |   |   |   |   |   |   |   |
|                     |   |                                                                   | 150,000 | (1)    |                                                                     |   | — |   |   |   | — |   |   | $ | 13.26 |   |   | 3/3/2013 |   |   |   | — |   |   |   | — |   |   |   |   |   |   |   |   |
|                     |   |                                                                   | 12,500  | (1)    |                                                                     |   | — |   |   |   | — |   |   | $ | 26.70 |   |   | 3/1/2014 |   |   |   | — |   |   |   | — |   |   |   |   |   |   |   |   |
|                     |   |                                                                   | 12,500  | (1)    |                                                                     |   | — |   |   |   | — |   |   | $ | 24.09 |   |   | 6/1/2014 |   |   |   | — |   |   |   | — |   |   |   |   |   |   |   |   |
|                     |   |                                                                   | 12,500  | (1)    |                                                                     |   | — |   |   |   | — |   |   | $ | 18.95 |   |   | 9/1/2014 |   |   |   | — |   |   |   | — |   |   |   |   |   |   |   |   |
|                     |   |                                                                   | 12,500  | (1)    |                                                                     |   | — |   |   |   | — |   |   | $ | 31.53 |   |   | 12/1/2014 |   |   |   | — |   |   |   | — |   |   |   |   |   |   |   |   |
|                     |   |                                                                   | 50,000  | (1)    |                                                                     |   | — |   |   |   | — |   |   | $ | 27.89 |   |   | 3/1/2015 |   |   |   | — |   |   |   | — |   |   |   |   |   |   |   |   |
| Jeryl      L. Hilleman   |   |                                                                   | — |   |                                                                     |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Isy      Goldwasser      |   |                                                                   | — |   |                                                                     |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 32,300 | (4) |   | $ | 248,064 |   |
|                     |   |                                                                   | — |   |                                                                     |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 64,600 | (5) |   | $ | 496,128 |   |   |   |   |   |   |   |   |   |
|                     |   |                                                                   | 29,369  | (1)    |                                                                     |   | — |   |   |   | — |   |   | $ | 0.96 |   |   | 1/4/2009 |   |   |   | — |   |   |   | — |   |   |   |   |   |   |   |   |   |
|                     |   |                                                                   | 50,000  | (1)    |                                                                     |   | — |   |   |   | — |   |   | $ | 12.00 |   |   | 10/21/2009 |   |   |   | — |   |   |   | — |   |   |   |   |   |   |   |   |   |
|                     |   |                                                                   | 108,390 | (1)    |                                                                     |   | — |   |   |   | — |   |   | $ | 57.00 |   |   | 2/28/2010 |   |   |   | — |   |   |   | — |   |   |   |   |   |   |   |   |   |
|                     |   |                                                                   | 50,000  | (1)    |                                                                     |   | — |   |   |   | — |   |   | $ | 25.50 |   |   | 1/11/2011 |   |   |   | — |   |   |   | — |   |   |   |   |   |   |   |   |   |
|                     |   |                                                                   | 80,000  | (1)    |                                                                     |   | — |   |   |   | — |   |   | $ | 25.00 |   |   | 6/18/2011 |   |   |   | — |   |   |   | — |   |   |   |   |   |   |   |   |   |
|                     |   |                                                                   | 50,000  | (1)    |                                                                     |   | — |   |   |   | — |   |   | $ | 16.70 |   |   | 3/1/2012 |   |   |   | — |   |   |   | — |   |   |   |   |   |   |   |   |   |
|                     |   |                                                                   | 150,000 | (1)    |                                                                     |   | — |   |   |   | — |   |   | $ | 13.26 |   |   | 3/3/2013 |   |   |   | — |   |   |   | — |   |   |   |   |   |   |   |   |   |
|                     |   |                                                                   | 12,500  | (1)    |                                                                     |   | — |   |   |   | — |   |   | $ | 26.70 |   |   | 3/1/2014 |   |   |   | — |   |   |   | — |   |   |   |   |   |   |   |   |   |
|                     |   |                                                                   | 12,500  | (1)    |                                                                     |   | — |   |   |   | — |   |   | $ | 24.09 |   |   | 6/1/2014 |   |   |   | — |   |   |   | — |   |   |   |   |   |   |   |   |   |
|                     |   |                                                                   | 12,500  | (1)    |                                                                     |   | — |   |   |   | — |   |   | $ | 18.95 |   |   | 9/1/2014 |   |   |   | — |   |   |   | — |   |   |   |   |   |   |   |   |   |
|                     |   |                                                                   | 12,500  | (1)    |                                                                     |   | — |   |   |   | — |   |   | $ | 31.53 |   |   | 12/1/2014 |   |   |   | — |   |   |   | — |   |   |   |   |   |   |   |   |   |
|                     |   |                                                                   | 50,000  | (1)    |                                                                     |   | — |   |   |   | — |   |   | $ | 27.89 |   |   | 3/1/2015 |   |   |   | — |   |   |   | — |   |   |   |   |   |   |   |   |   |
|                     |   |                                                                   | 200,000 | (4)    |                                                                     |   | 200,000 |   |   |   | — |   |   | $ | 8.58 |   |   | 11/2/2012 |   |   |   | — |   |   |   | — |   |   |   |   |   |   |   |   |   |
| W.      Henry Weinberg   |   |                                                                   | — |   |                                                                     |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 32,300 | (4) |   | $ | 248,064 |   |
|                     |   |                                                                   | — |   |                                                                     |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 64,600 | (3) |   | $ | 496,128 |   |   |   |   |   |   |   |   |   |
|                     |   |                                                                   | 50,000  |   |                                                                     |   | — |   |   |   | — |   |   | $ | 12.00 |   |   | 10/21/2009(4) |   |   |   | — |   |   |   | — |   |   |   |   |   |   |   |   |   |
|                     |   |                                                                   | 270,890 |   |                                                                     |   | — |   |   |   | — |   |   | $ | 57.00 |   |   | 2/28/2010(5) |   |   |   | — |   |   |   | — |   |   |   |   |   |   |   |   |   |
|                     |   |                                                                   | 50,000  |   |                                                                     |   | — |   |   |   | — |   |   | $ | 25.50 |   |   | 1/11/2011(6) |   |   |   | — |   |   |   | — |   |   |   |   |   |   |   |   |   |
|                     |   |                                                                   | 60,000  |   |                                                                     |   | — |   |   |   | — |   |   | $ | 25.00 |   |   | 6/18/2011(7) |   |   |   | — |   |   |   | — |   |   |   |   |   |   |   |   |   |
|                     |   |                                                                   | 50,000  |   |                                                                     |   | — |   |   |   | — |   |   | $ | 16.70 |   |   | 3/1/2012(8) |   |   |   | — |   |   |   | — |   |   |   |   |   |   |   |   |   |
|                     |   |                                                                   | 150,000 |   |                                                                     |   | — |   |   |   | — |   |   | $ | 13.26 |   |   | 3/3/2013(9) |   |   |   | — |   |   |   | — |   |   |   |   |   |   |   |   |   |
|                     |   |                                                                   | 12,500  |   |                                                                     |   | — |   |   |   | — |   |   | $ | 26.70 |   |   | 3/1/2014(10) |   |   |   | — |   |   |   | — |   |   |   |   |   |   |   |   |   |
|                     |   |                                                                   | 12,500  |   |                                                                     |   | — |   |   |   | — |   |   | $ | 24.09 |   |   | 6/1/2014(10) |   |   |   | — |   |   |   | — |   |   |   |   |   |   |   |   |   |
|                     |   |                                                                   | 12,500  |   |                                                                     |   | — |   |   |   | — |   |   | $ | 18.95 |   |   | 9/1/2014(10) |   |   |   | — |   |   |   | — |   |   |   |   |   |   |   |   |   |
|                     |   |                                                                   | 12,500  |   |                                                                     |   | — |   |   |   | — |   |   | $ | 31.53 |   |   | 12/1/2014(10) |   |   |   | — |   |   |   | — |   |   |   |   |   |   |   |   |   |
|                     |   |                                                                   | 50,000  |   |                                                                     |   | — |   |   |   | — |   |   | $ | 27.89 |   |   | 3/1/2015(11) |   |   |   | — |   |   |   | — |   |   |   |   |   |   |   |   |   |
| Richard      Boehner     |   |                                                                   | 100,000 | (6)    |                                                                     |   | 100,000 |   |   |   | — |   |   | $ | 8.58 |   |   | 11/2/2012 |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
|                     |   |                                                                   | — |   |                                                                     |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 22,564 | (5) |   | $ | 173,292 |   |   |   | — |   |   |   | — |   |
| Timothy      Campbell    |   |                                                                   | 120,000 | (8)    |                                                                     |   | 120,000 |   |   |   | — |   |   | $ | 8.58 |   |   | 11/2/2012 |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
|                     |   |                                                                   | — |   |                                                                     |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 14,116 | (5) |   | $ | 108,411 |   |   |   | — |   |   |   | — |   |
| Rex      Jackson         |   |                                                                   | 120,000 | (10)   |                                                                     |   | 120,000 |   |   |   | — |   |   | $ | 8.58 |   |   | 11/2/2012 |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
|                     |   |                                                                   | — |   |                                                                     |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 26,500 | (4) |   | $ | 203,520 |   |
|                     |   |                                                                   | — |   |                                                                     |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 53,000 | (5) |   | $ | 407,040 |   |   |   | — |   |   |   | — |   |

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|   | (1) | Fully      vested. |
|--------|-----|--------------------|

|   | (2) | Shares      shall incrementally vest upon successful completion of certain      performance-based milestones. |
|--------|-----|---------------------------------------------------------------------------------------------------------------|

|   | (3) | 50%      of the shares subject to this award vested on March 1, 2008 and the      remaining balance of 32,300 RSUs were cancelled on January 8,      2008. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (4) | Shares      were to incrementally vest upon successful completion of certain      performance based milestones; milestones not achieved and award forfeited      on March 13, 2008 |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (5) | 50%      of the shares vested on March 1, 2008, 33% of the shares shall vest on      March 1, 2009 and the remaining balance shall vest on March 1,      2010. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (6) | 20%      of the shares vested on March 1, 2009, 40% of the shares shall vest on      March 1, 2010 and the remaining balance shall vest on March 1,      2011.                                               |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | (7) | Does      not include performance-based restricted stock units with performance      terms based on 2007 financial performance metrics that were not met and      therefore did not vest and wereterminated. |

|                   |   | Option      Awards                             |    |   | Stock      Awards                   |   |
|------------------------|--------|------------------------------------------------|---------|--------|-------------------------------------|--------|
| Name                   |   | Number      of Shares Acquired on Exercise (#) |    |   | Value      Realized on Exercise ($) |   |   | Number      of Shares Acquired on Vesting (#) |   |   | Value      Realized on Vesting ($)(1) |   |
| Steven      D. Goldby  |   |                                           | — |   |                                |   | — |   |   |   | 33,000 | (2) |   | $ | 549,450 |   |
| Isy      Goldwasser    |   |                                           | 15,000  |   |                                | $      | 264,815 |   |   |   | 33,000 | (2) |   | $ | 549,450 |   |
| W.      Henry Weinberg |   |                                           | 12,000  |   |                                | $      | 79,420 |   |   |   | 33,000 | (2) |   | $ | 549,450 |   |
| Jeryl      L. Hilleman |   |                                           | — |   |                                |   | — |   |   |   | 27,000 | (2) |   | $ | 449,550 |   |

| (1) | Reflects      the market value on the vestingdate. |
|-----|----------------------------------------------------|

| (2) | Stock      award vested on March 1, 2007 |
|-----|------------------------------------------|

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|   | · | we      reduce the participant’s base salary, target bonus and/or other cash      compensation programs, taken as a whole, unless such reduction is made in      connection with an across-the-board, proportionate reduction of      substantially all executives’ annual base salaries, bonuses, plans and/or      other cash compensation programs instituted because we, taken as a whole,      are in financial distress; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | we      reduce or eliminate the participant’s eligibility to participate in or the      benefits associated with participating in our benefit programs that is      inconsistent with the eligibility to participate in and benefits      associated with participation enjoyed by similarly situated employees;      or |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | we      relocate the participant’s primary business office more than fifty (50)      miles from the location at which the participant predominately performed      duties prior to such relocation, except for required participant travel on      our business to an extent substantially consistent with the participant’s      prior business travel obligations |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | willfully      refuses to perform in any material respect the participant’s duties or      responsibilities for or willfully disregards in any material respect any      financial or other budgetary limitations established in good faith by the      Board; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | engages      in conduct that causes, or is reasonably likely to cause, material and      demonstrable injury, monetarily or otherwise, to us, including, but not      limited to, misappropriation or conversion of our assets (other than      non-material assets); or |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | engages      in an act of moral turpitude or conviction of or entry of a plea of nolo      contendere to a felony; and |
|--------|--------|------------------------------------------------------------------------------------------------------------------------|

|   | · | our      shareholders’ approve a plan of complete liquidation or of an agreement      for the sale or disposition of all or substantially all of our      assets; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | · | our      shareholders approve a merger or consolidation of us with any other      corporation, other than a merger or consolidation which would result in      our voting securities outstanding immediately prior thereto continuing to      represent (either by remaining outstanding or by being converted into      voting securities of the surviving entity) more than fifty percent (50%)      of the total voting power represented by our voting securities or such      surviving entity outstanding immediately after such merger or      consolidation; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | any      “person” (as such term is used in Sections 13(d) and 14(d) of the Exchange      Act) becomes the “beneficial owner” (as defined in Rule 13d-3 under the      Exchange Act), directly or indirectly, of thirty percent (30%) or more of      our then outstanding voting securities;or |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | a      change in the composition of the Board, as a result of which fewer than      sixty-six percent (66%) of the directors are elected, or nominated for      election, to the Board with the affirmative votes of at least a majority      of those directors whose election or nomination was not in connection with      any transactions described in subsections (i), (ii) or (iii), or in      connection with an actual or threatened proxy contest relating to the      election of Company directors. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | we      materially reduce the participant’s base  compensation; |
|--------|--------|-----------------------------------------------------------------------|

|   | · | we      materially reduce the participant’s authority, duties or responsibilities      but only if the reduction of authority, duties or responsibilities occurs      within the period commencing three (3) months prior to a Change in Control      and ending twelve (12) months following such Change in Control;      or |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | we      relocate the participant’s primary business office more than fifty (50)      miles from the location at which the participant predominately performed      duties prior to such relocation, except for required participant travel on      our business to an extent substantially consistent with the participant’s      prior business travel obligations. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Name      and Principal Position |                             | Constructive      Termination or Involuntary Termination Without Cause after a Change in      Control |    |         | Constructive      Termination or Involuntary Termination Without Cause other than after a      Change in Control |   |
|----------------------------------|----------------------------------|-------------------------------------------------------------------------------------------------------|---------|--------------|------------------------------------------------------------------------------------------------------------------|--------|
|                             | Health      Care Benefits ($)(1) |                                                                                                  |    | Salary($)(2) |                                                                                                             |   | EquityAcceleration($)(3) |   |   | Health      Care Benefits ($)(4) |   |   | Salary($)(5) |   |   | EquityAcceleration($)(3) |   |
| Steven      D. Goldby(6)         |                             |                                                                                                  | — |         |                                                                                                             |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Jeryl      L. Hilleman(7)        |                             |                                                                                                  | — |         |                                                                                                             |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Isy      Goldwasser              |                             | $                                                                                                     | 26,550  |         |                                                                                                             | $      | 525,000 |   |   |   | 496,128 |   |   | $ | 15,930 |   |   | $ | 315,000 |   |   |   | 496,128 |   |
| W.      Henry Weinberg (8)       |                             | $                                                                                                     | 26,550  |         |                                                                                                             | $      | 630,000 |   |   |   | — |   |   | $ | 15,930 |   |   | $ | 315,000 |   |   |   | 496,128 |   |
| Richard      Boehner             |                             | $                                                                                                     | 26,550  |         |                                                                                                             | $      | 375,000 |   |   |   | 173,292 |   |   | $ | 15,930 |   |   | $ | 225,000 |   |   |   | 172,292 |   |
| Timothy      E. Campbell         |                             | $                                                                                                     | 26,550  |         |                                                                                                             | $      | 387,500 |   |   |   | 108,411 |   |   | $ | 15,930 |   |   | $ | 232,500 |   |   |   | 108,411 |   |
| Rex      Jackson                 |                             | $                                                                                                     | 26,550  |         |                                                                                                             | $      | 412,500 |   |   |   | 407,040 |   |   | $ | 15,930 |   |   | $ | 247,500 |   |   |   | 407,040 |   |

|  | (1)  | Represents      the full amount of premiums for continued coverage under our group health      plans for each executive office and his eligible dependents for 15 months      following termination of service, provided the executive officer timely      elects continued coverage under the Consolidated Omnibus Budget      Reconciliation Act of 1985, orCOBRA. |
|--|-----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (2) |  Represents      the lump sum cash severance benefit equal to 15 times the monthly base      salary in effect as of December 31,2007. |
|--|-----|--------------------------------------------------------------------------------------------------------------------------------------------|

|  | (3) |  Represents      (a) the fair market value of those shares subject to outstanding      restricted stock units and (b) the excess of the fair market value of      those shares subject to outstanding unvested options that were “in the      money” on December 31, 2007, calculated based on the closing price of our      common stock of $7.68 on December 31, 2007, the last trading day of fiscal      2007, over the aggregate exercise price of such  options. |
|--|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (4) |  Represents      the full amount of premiums for continued coverage under our group health      plans for each executive office and his eligible dependents for nine      months following termination of service, provided the executive officer      timely elects continued coverage underCOBRA. |
|--|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (5) |  Represents      the lump sum cash severance benefit equal to nine times the monthly base      salary in effect as of December 31,2007. |
|--|-----|----------------------------------------------------------------------------------------------------------------------------------------------|

|  | (6) | Mr.      Goldby ceased to be a participant in the Severance Plan effective June 12,      2007. |
|--|-----|------------------------------------------------------------------------------------------------|

|  | (7) | Ms.      Hilleman resigned effective June 1, 2007.  All severance      payments made to her upon her resignation are reflected under the column      entitled “Other Compensation” in the Summary Compensation Table      above. |
|--|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (8) | Upon a      constructive termination or involuntary termination without cause after      a change in control, Mr. Weinberg will receive, in lieu of equity      acceleration, a cash payment in the amount of 32,300 times the price per      share paid by anacquiror. |
|--|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Name                       |   | Fees      Earned or Paid in Cash($) |   |   | Stock      Awards($)(1) |   |   | All      Other Compensation ($) |   |   | Total($) |   |
|----------------------------|--------|-------------------------------------|--------|--------|-------------------------|--------|--------|---------------------------------|--------|--------|----------|--------|
| Thomas      R. Baruch      |   | $                                   | 51,250 |   |                    | $      | 44,634 |                            |   |   | —  |   |   | $ | 95,884.00 |   |
| Samuel      D. Colella(2)  |   | $                                   | 23,750 |   |                    | $      | 44,634 |                            |   |   | —  |   |   | $ | 68,384.00 |   |
| Edwin      F. Gambrell(3)  |   | $                                   | 26,698 |   |                    | $      | 44,634 |                            |   |   | —  |   |   | $ | 71,332.00 |   |
| David      C. Hill(4)      |   | $                                   | 12,636 |   |                    | $      | 20,537 |                            |   | $      | 1,172    | (6)    |   | $ | 34,339.00 |   |
| Anthony      R. Muller     |   | $                                   | 53,750 |   |                    | $      | 43,815 |                            |   |   | —  |   |   | $ | 97,565.00 |   |
| Kenneth      J. Nussbacher |   | $                                   | 50,000 |   |                    | $      | 44,634 |                            |   |   | —  |   |   | $ | 94,634.00 |   |
| Bruce      Pasternack(5)   |   | $                                   | 23,970 |   |                    | $      | 24,850 |                            |   |   | —  |   |   | $ | 48,820.00 |   |
| Mario      M. Rosati       |   | $                                   | 30,000 |   |                    | $      | 44,634 |                            |   |   | —  |   |   | $ | 74,634.00 |   |

| (1) | Represents      the proportionate amount of the total fair value of the stock and option      awards recognized by us as an expense in 2007 for financial accounting      purposes, disregarding for this purpose the estimate of forfeitures      related to service-based vesting conditions. The fair value of these      awards and the amounts expensed in 2007 were determined in accordance with      FAS 123R.  See Note 4 to our combined and consolidated financial      statements for the year ended December 31, 2007 contained in our Annual      Report on Form 10-K for the year ended December 31, 2007 for a discussion      of all assumptions made in connection with the computation of these      values. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Mr.      Colella retired from the Board on June 26, 2007. Mr. Colella’s      compensation is pro rated for the portion of the year that he served on      the Board. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Mr.      Gambrell retired from the Board on October 19, 2007. Mr. Gambrell’s      compensation is pro rated for the portion of the year that he served on      the Board. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | Dr.      Hill was appointed to the Board on August 30, 2007. Dr. Hill’s      compensation is pro rated for the portion of the year that he served on      our Board. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5) | Mr.      Pasternack was appointed to the Board on June 29, 2007. Mr. Pasternack’s      compensation is pro rated for the portion of the year that he served on      our Board. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (6) | Consists      of payment of consulting fees in connection with Dr. Hill’s consulting      services to us. |
|-----|-----------------------------------------------------------------------------------------------------------------|

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|   | Respectfully      submitted,                              |
|--------|-----------------------------------------------------------|
|   | The      Compensation Committee of the Board of Directors |
|   |                                                      |
|   |                                                      |
|   | David      C. Hill                                        |
|   | Bruce      Pasternack                                     |
|   | Chris      van Ingen                                      |

SHI

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| Name      and Address ofBeneficial      Owner                                                                                    |   | Amount      ofCommon      Stock |      |   | Percentof      Class(1)(2) |   |
|----------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------|-----------|--------|----------------------------|--------|
| 5%      Stockholders:                                                                                                            |   |                            |      |   |                       |   |
| Tocqueville      Asset Management, L.P.(3)40      West 57th      Street19th      FloorNew      York, NY 10019                    |   |                            | 1,701,286 |   |                       |   | 5.06 | % |
| T.      Rowe Price Associates, Inc.(4)100      East Pratt StreetBaltimore,      MD 21202                                         |   |                            | 4,232,267 |   |                       |   | 12.58 | % |
| Wells      Fargo & Company(5)420      Montgomery StreetSan      Francisco, CA 94163                                          |   |                            | 2,199,036 |   |                       |   | 6.53 | % |
| Oppenheimer      Funds, Inc.(6)Two      World Financial Center225      Liberty Street11th      FloorNew      York, NY 10281-1008 |   |                            | 4,201,518 |   |                       |   | 12.48 | % |
| Royce      & Associates, LLC(7)1414      Avenue of the AmericasNew      York, NY 10019                                       |   |                            | 4,177,000 |   |                       |   | 12.41 | % |
| W.      Henry Weinberg, Ph.D(8)                                                                                                  |   |                            | 763,734   |   |                       |   | 2.27 | % |
| Steven      D. Goldby(9)                                                                                                         |   |                            | 719,338   |   |                       |   | 2.14 | % |
| Isy      Goldwasser(10)                                                                                                          |   |                            | 664,900   |   |                       |   | 1.98 | % |
| Kevin      Cronin(11)                                                                                                            |   |                            | 88,977    |   |                       |   | * |   |
| Kenneth      Nussbacher(12)                                                                                                      |   |                            | 71,364    |   |                       |   | * |   |
| Mario      M. Rosati(13)                                                                                                         |   |                            | 69,125    |   |                       |   | * |   |
| Thomas      R. Baruch(14)                                                                                                        |   |                            | 64,825    |   |                       |   | * |   |
| Jeryl      L. Hilleman(15)                                                                                                       |   |                            | 20,777    |   |                       |   | * |   |
| Rex      S. Jackson                                                                                                              |   |                            | 18,943    |   |                       |   | * |   |
| Richard      Boehner                                                                                                             |   |                            | 7,249     |   |                       |   | * |   |
| Timothy      Campbell                                                                                                            |   |                            | 4,535     |   |                       |   | * |   |
| Anthony      R. Muller                                                                                                           |   |                            | 1,681     |   |                       |   | * |   |
| Gerard      Abraham                                                                                                              |   |                            | 0         |   |                       |   | * |   |
| Chris      van Ingen                                                                                                             |   |                            | 0         |   |                       |   | * |   |
| Bruce      Pasternack                                                                                                            |   |                            | 0         |   |                       |   | * |   |
| David      Hill                                                                                                                  |   |                            | 0         |   |                       |   | * |   |
| Timothy      Harkness                                                                                                            |   |                            | 0         |   |                       |   | * |   |
| Richard      Rosenthal                                                                                                           |   |                            | 0         |   |                       |   | * |   |
| All      directors and executive Officers as a group (18 persons)                                                                |   |                            | 2,498,448 |   |                       |   | 7.42 | % |

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| (1) | Beneficial      ownership is determined in accordance with the rules of the SEC. In      computing the number of shares beneficially owned by a person and the      percentage of ownership of that person, shares of common stock subject to      options held by that person that are currently exercisable or exercisable      within 60 days of March 1, 2008 are deemed outstanding. The persons named      in this table have sole voting and investment power with respect to all      shares of common stock shown as beneficially owned by them, subject to      community property laws where applicable and except as indicated in the      other footnotes to this table. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Percentage      of beneficial ownership is based on 33,594,112 shares of common stock      outstanding as of March 1, 2008. |
|-----|-----------------------------------------------------------------------------------------------------------------------------|

| (3) | Based      solely on a Schedule 13G filed with the Securities and Exchange Commission      on February 14, 2008, Tocqueville Asset Management, L.P. has no shared      voting power and has sole voting power with respect to 1,536,956 shares      and sole dispositive power with respect to 1,701,286 shares as of December      31, 2007. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | Based      solely on a Schedule 13G filed with the Securities and Exchange Commission      on February 12, 2008, T. Rowe Price Associates, Inc. has no shared voting      or dispositive power and has sole voting power with respect to 1,399,077      shares and sole dispositive power with respect to 4,232,267 shares as of      December 31, 2007. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5) | Based      solely on a Schedule 13G filed with the Securities and Exchange Commission      on February 6, 2008, (i) Wells Fargo & Company has  sole      voting power with respect to 2,131,837 shares, shared voting power with      respect to 560 shares, sole dispositive power with respect to 2,273,342      shares and shared dispositive power with respect to 30,160 shares as of      December 31, 2007, and (ii) Wells Capital Management Incorporated has no      shared voting power or shared dispositive power and has sole voting power      with respect to 685,596 shares and sole dispositive power with respect to      2,199,036 shares as of December 31,2007. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (6) | Based      solely on a Schedule 13G filed with the Securities and Exchange Commission      on February 6, 2008, (i) Oppenheimer Funds, Inc. has no sole voting or      dispositive power and has shared voting power with respect to 2,201,518      shares and shared dispositive power with respect to 2,201,518 shares as of      December 31, 2007, and (ii) Oppenheimer Global Opportunities Fund has no      sole voting or dispositive powers and has shared voting power with respect      to 2,000,000 shares and shared dispositive with respect to 2,000,000      shares as of December 31,2007. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (7) | Based      solely on a Schedule 13G filed with the Securities and Exchange Commission      on January 31, 2008, Royce & Associates, LLC has no shared voting or      dispositive power and has sole voting and sole dispositive powers with      respect to 4,177,000 shares as of December 31,  2007. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (8) | Includes      718,890 shares of our common stock issuable pursuant to stock options      exercisable within 60 days of March 1,2008. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------|

| (9) | Includes      675,612 shares of our common stock issuable pursuant to stock options      exercisable within 60 days of March 1, 2008 and 2,500 shares held in the      name of the Steven Goldby and Florence Goldby Trust, of which Mr. and Mrs.      Goldby are trustees. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (10) | Includes      617,759 shares of our common stock issuable pursuant to stock options      exercisable within 60 days of March 1,2008. |
|------|--------------------------------------------------------------------------------------------------------------------------------------|

| (11) | Includes      87,124 shares of our common stock issuable pursuant to stock options      exercisable within 60 days of March 1,2008. |
|------|-------------------------------------------------------------------------------------------------------------------------------------|

|  | (12) | Consists      of 52,500 shares of our common stock issuable pursuant to stock options      exercisable within 60 days of March 1, 2008 and 18,864 shares held in the      name of the Nussbacher Revocable Trust dated  10/6/99. |
|--|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (13) | Includes      52,500 shares of our common stock issuable pursuant to stock options      exercisable within 60 days of March 1, 2008 and 5,185 held in the name of      Mr. Rosati’s spouse. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (14) | Includes      52,500 shares of our common stock issuable pursuant to stock options      exercisable within 60 days of March 1,2008. |
|------|-------------------------------------------------------------------------------------------------------------------------------------|

| (15) | Includes      3,249 shares of out common stock held in the name of the Hilleman/Albright      Family Trust, of which Ms. Hilleman is a  trustee. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                                           |   | A                                                                                   |      |   | B                                                                   |   |   | C                                                                                                                                                        |   |
|----------------------------------------------------------------|--------|-------------------------------------------------------------------------------------|-----------|--------|---------------------------------------------------------------------|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| Plan      Category                                             |   | Number      of Securitiesto      Be Issued Upon Exercise ofOutstanding      Options |      |   | Weighted      AverageExercise      Priceof      Outstanding Options |   |   | Number      of Securities Remaining Available for Future Issuance Under Equity      Compensation Plans (Excluding Securities Reflected in Column      A) |   |
| Equity      Compensation Plans Approved by Stockholders(1)     |   |                                                                                | 6,031,510 | (3)    |                                                                | $      | 24.94  |                                                                                                                                                     |   |   | 2,654,087 | (4) |
| Equity      Compensation Plans Not Approved by Stockholders(2) |   |                                                                                | 835,933   |   |                                                                | $      | 10.47  |                                                                                                                                                     |   |   | 16,117 |   |
| Total                                                          |   |                                                                                | 6,867,443 |   |                                                                | $      | 23.18  |                                                                                                                                                     |   |   | 2,670,204 |   |

| (1) | Consists      of the 1996 Stock Option Plan, 1997 Stock Option Plan, 2007 Stock      Incentive Plan and the 1999 Employee Stock Purchase  Plan. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Consists      of the IntelliChem, Inc. 2003 Stock Option Plan assumed in connection with      the acquisition of IntelliChem, Inc., the Synthematix, Inc. 2000 Equity      Compensation Plan, as amended, assumed in connection with the acquisition      of Synthematix, Inc., and the 2001 Non-Statutory Stock Option      Plan. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Excludes      purchase rights accruing under our 1999 Employee Stock Purchase Plan which      has a stockholder approved reserve of 1,570,370 shares as of December 31,      2007. Under the 1999 Employee Stock Purchase Plan, each eligible employee      may purchase up to a maximum of 10,000 shares per annum of common stock at      semi-annual intervals on the last U.S. business day of April and October      each year at a purchase price per share equal to 85% of the lower of (i)      the closing selling price per share of common stock on the employee’s      entry date into the 12-month offering period in which that semi-annual      purchase date occurs or (ii) the closing selling price per share on the      semi-annual purchase date. Eligible employees may defer up to 10% of their      salary, but not to exceed $25,000, in any calendar year, to purchase      shares under this Plan. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | Consists      of shares available for future grants under our 2007 Stock Incentive Plan      and issuance under the 1999 Employee Stock Purchase Plan. As of December      31, 2007, an aggregate of 1,570,370 shares of common stock were available      for issuance under the 1999 Employee Stock Purchase Plan and 1,083,717      shares of common stock were available for future grants under the 2007      Stock Incentive Plan. The 1999 Employee Stock Purchase Plan provides for      annual increases in the number of shares available for issuance under the      Plan on the first day of each fiscal year, equal to the lesser of 1% of      the outstanding shares of common stock on the first day of the fiscal      year, 350,000 shares, or a lesser amount as determined by our      Board. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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ACC

|                    |   | Fiscal      Year Ended(in      thousands) |   |
|-------------------------|--------|-------------------------------------------|--------|
| Service      Category   |   | 2007                                      |   |   | 2006 |   |
| Audit      Fees         |   | $                                         | 1,671  |   |   | $ | 935 |   |
| Audit-Related      Fees |   |                                      | 35     |   |   |   | 60 |   |
| All      Other Fees     |   |                                      | 40     |   |   |   | 2 |   |
| Total                   |   | $                                         | 1,746  |   |   | $ | 997 |   |

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NA

|   | SYMYX      TECHNOLOGIES, INC. |
|--------|-------------------------------|
|   | (Registrant)                  |

| Date:  April      28, 2008 | /s/      Isy Goldwasser            |   |
|--------------------------------------|------------------------------------|--------|
|                                 | Isy      Goldwasser                |
|                                 | Chief      Executive Officer       |
|                                 | (Principal      Executive Officer) |

| Date:  April      28, 2008 | /s/      Rex S. Jackson                          |   |
|--------------------------------------|--------------------------------------------------|--------|
|                                 | Rex      S. Jackson                              |
|                                 | Executive      Vice President,                   |
|                                 | Chief      Financial Officer                     |
|                                 | (Principal      Financial and AccountingOfficer) |

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| ExhibitNumber |   |  Description      of Document                                                                                                                                                                                                                 |
|---------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 31.1          | (1)    | Certification      of Chief Executive Officer pursuant to Rules 13a-14(a) and 15d-14(a)      promulgated under the Securities Exchange Act of 1934, as amended, as      adopted pursuant to Section 302(a) of the Sarbanes-Oxley Act of      2002. |
| 31.2          | (1)    | Certification      of Chief Financial Officer pursuant to Rules 13a-14(a) and 15d-14(a)      promulgated under the Securities Exchange Act of 1934, as amended, as      adopted pursuant to Section 302(a) of the Sarbanes-Oxley Act of      2002. |

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