Document:

EXHIBIT 10.2
                                                                    ------------

_________________, Connecticut          Date of this Agreement: __________, 2006

                                NEWALLIANCE BANK
                               SECURITY AGREEMENT

1.    WHAT SOME OF THE WORDS MEAN.

      "SECURED PARTY" means NewAlliance Bank, 195 Church Street, New Haven,
Connecticut 06510 and what are called its "SUCCESSORS AND ASSIGNS."

      "DEBTOR" means, individually and collectively, the following persons
and/or entities: CAS MEDICAL SYSTEMS, INC.

      "THIS AGREEMENT" means this Security Agreement.

      "BORROWER" means, individually and collectively, the following persons
and/or entities: CAS MEDICAL SYSTEMS, INC

      "COMMERCIAL LOAN AGREEMENT" means and includes, individually and
collectively (applicable box is checked):

[X]   Commercial Line of Credit Note and Loan Agreement dated the date hereof
      from the Borrower to the Secured Party with a credit limit of
      $5,000,000.00;

[_]   Commercial Term Loan Note dated the date hereof from the Borrower to the
      Secured Party with an initial principal balance of $________.

2.    DEBTOR GRANTS A SECURITY INTEREST IN COLLATERAL. For valuable
consideration, the receipt and sufficiency of which is hereby acknowledged by
the parties, the Debtor does hereby grant to the Secured Party a security
interest in the property (the same being hereinafter referred to as
"COLLATERAL") described in Exhibit A attached hereto and made a part hereof, to
secure payment of all of DEBTOR'S AND BORROWER'S indebtedness, obligations and
liabilities to Secured Party, whether arising under this Agreement, the
Commercial Loan Agreement, any extension or modification thereof, any promissory
note, any guaranty or endorsement or otherwise, whether direct or indirect,
joint or several, absolute or contingent (all of which indebtedness, obligations
and liabilities are hereinafter sometimes called the "OBLIGATIONS").

3.    WARRANTIES AND COVENANTS. The Debtor hereby warrants and covenants that
the Collateral is used primarily for business purposes and that the tangible
personal property forming a part of the Collateral shall be kept and maintained
within the State of Connecticut; that Debtor will promptly notify Secured Party
of any change in the State wherein said Collateral is located and will not
remove said Collateral from said State without the prior written consent of the
Secured Party.

      Debtor hereby further warrants and covenants that:

      (a) Debtor is the Owner of the Collateral free from any adverse lien,
security interest or encumbrance, except for the security interest granted
hereby, and Debtor will defend the Collateral against all claims and demands of
all persons at any time claiming the same or any interest therein.

      (b) No financing statement covering all or any part of the Collateral is
on file in any public office (other than those expressly consented to in writing
by Secured Party), and at the request of Secured Party, Debtor will execute or
join with Secured Party in executing one or more financing statements pursuant
to the Uniform Commercial Code in form satisfactory to Secured Party and will
pay the cost of filing the same or filing or recording this Agreement in all
public offices wherever filing or recording is deemed by Secured Party to be
necessary or desirable. A photocopy of this Agreement may be filed as a
financing statement at the option of the Secured Party. The Debtor hereby
authorizes the Security Party to file one or more financing statements without
the Debtor's signature in any jurisdiction deemed reasonable or necessary by
Secured Party to further perfect the security interests granted hereunder and
Debtor hereby appoints the Secured Party as its attorney-in-fact, which
appointment is coupled with an interest and is irrevocable, to sign Debtor's
name to any such financing statement.

      (c) Debtor will not sell or offer for sale or otherwise transfer all or
any part of the Collateral or any interest therein (except sales in the ordinary
course of the Debtor's business) without the prior written consent of Secured
Party.

      (d) Debtor will have and maintain insurance at all times with respect to
all insurable Collateral against risks of fire (including so-called extended
coverage), theft and such other risks as Secured Party may require, containing
such terms, in such form, for such periods and written by such companies as may
be satisfactory to Secured Party, such insurance to be payable to Secured Party
and Debtor as their interests may appear; all policies of insurance shall
provide for thirty (30) days prior written minimum cancellation notice to
Secured Party; Debtor shall furnish Secured Party with certificates or other
evidence satisfactory to Secured Party of compliance with the foregoing
insurance provisions; and Debtor hereby appoints Secured Party as
attorney-in-fact for Debtor, which appointment is coupled with an interest

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and is irrevocable, for the purpose of obtaining, adjusting, settling and
canceling such insurance and endorsing any drafts.

      (e) Debtor will keep the Collateral free from any adverse lien, security
interest or encumbrance (other than those expressly consented to in writing by
Secured Party) and in good order and repair and will not waste or destroy the
Collateral or any part thereof; Debtor will not use the Collateral in violation
of any statute or ordinance; and Secured Party may examine and inspect the
Collateral at any time, wherever located.

      (f) Debtor will pay promptly when due all taxes and assessments upon the
Collateral or for its use or operation or upon this Agreement or upon any
instrument or document creating the Obligations.

      (g) Debtor will permit the Secured Party, or any agent or person
designated by the Secured Party, at any time during normal business hours to
enter the premises of the Debtor for the purpose of inspecting and/or appraising
the Collateral, provided, however, that unless an event of default has occurred
or the Secured Party believes in good faith that there has been an adverse
change in market or other conditions that may affect the value of the
Collateral, the Debtor shall be required to pay the costs of such inspection
and/or appraisal only once every three (3) years.

      (h) At its option, Secured Party may discharge taxes, liens or security
interests or other encumbrances at any time levied or placed on the Collateral,
may pay for insurance on the Collateral, and may pay for the maintenance and
preservation of the Collateral. Debtor agrees to reimburse Secured Party on
demand for any payment made, or any expense incurred by Secured Party pursuant
to the foregoing authorization. Interest shall accrue on any such expenditure
until paid at the highest rate chargeable to the Borrower under any Obligation.
Until an event of default has occurred and Secured Party has given Debtor notice
containing directions regarding the Collateral, Debtor may have possession of
the Collateral and use it in any lawful manner not inconsistent with this
Agreement and not inconsistent with any policy of insurance thereon.

4.    DEFAULT. Debtor shall be in default under this Agreement upon the
happening of any of the following events or conditions:

      (a) Default by the Borrower with respect to any of the Obligations,
including but not limited to, a failure to promptly pay or perform (or any other
"EVENT OF Default") under the Commercial Loan Agreement;

      (b) Default by the Debtor in the performance of or compliance with any
term or covenant applicable to it contained herein or in any other instrument,
document or agreement securing any Obligation;

      (c) Any warranty, representation or statement made or furnished to Secured
Party by or on behalf of BORROWER OR DEBTOR proves to have been false in any
material respect when made or furnished;

      (d) Loss, theft, substantial damage, destruction, sale (except in the
ordinary course of Debtor's business) to or of any of the Collateral, or the
making of any levy, seizure or attachment thereof or thereon or if all or any
part of the Collateral is subjected to a lien, encumbrance or security interest
(other than the security interest granted herein); or

      (e) Dissolution, termination of existence, insolvency, business failure,
appointment of a receiver of any part of the property of, assignment for the
benefit of creditors by, or the commencement of any proceeding under any
bankruptcy or insolvency laws, by or against Borrower, Debtor or any guarantor
or surety for Borrower.

5.    REMEDIES UPON DEFAULT. Upon such default and at any time thereafter,
Secured Party may declare all Obligations secured hereby immediately due and
payable and shall have the remedies of a secured party under the Uniform
Commercial Code. Secured Party may require Debtor to assemble the Collateral and
make it available to Secured Party at a place to be designated by Secured Party
which is reasonably convenient to both parties. Unless the Collateral is
perishable or threatens to decline speedily in value or is of a type customarily
sold on a recognized market, Secured Party will give Debtor reasonable notice of
the time and place of any public sale thereof or of the time after which any
private sale or any other intended disposition thereof is to be made. The
requirements of reasonable notice shall be met if such notice is mailed, postage
prepaid, to the Debtor at its principal place of business, at least ten (10)
days before the time of the sale or disposition. Any proceeds of any disposition
of any of the Collateral shall be applied in the manner and order as provided in
the Uniform Commercial Code. Secured Party's expenses shall include, without
limitation, expenses of retaking, holding, preparing for sale, selling, leasing
and the like and Secured Party's reasonable attorney's fees and legal expenses.

6.    GENERAL.

      (a) INFORMATION REGARDING DEBTOR AND COLLATERAL. Debtor understands and
agrees that the condition of and circumstances surrounding the Collateral and
Debtor's financial condition are of material and continuing importance to
Secured Party. Accordingly, Debtor hereby agrees to PROMPTLY provide Secured
Party with such information as we may request from time to time (including, if
requested, information pertaining to any Collateral and Debtor's financial
condition). All such information shall be in form, scope and detail acceptable
to Secured Party, and, if Secured Party so requests, will be reviewed, compiled
or audited by persons or firms reasonably acceptable to Secured Party (all at
Debtor's expense).

      (b) GIVING OF NOTICES. Unless the law requires a different method, any
notice that must be given to Debtor under this Agreement will be given by hand
delivery, or by mailing it by first class mail, to the address, as applicable,
stated below. It shall

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be mailed or delivered to Debtor at a different address if Debtor gives Secured
Party a notice of that different address.

      Unless the law or this Agreement provides otherwise, all notices that must
be given to the Secured Party under this Agreement will be given by mailing it
by postage prepaid registered first class mail (return receipt requested) to the
Secured Party at the address stated above in Section 1 (directed to the
attention of the Commercial Loan Administration Department) or to a different
address if Secured Party gives Debtor notice of that different address.

      (c) CONNECTICUT LAW. This Agreement is being made in the State of
Connecticut and will be governed by the laws of the State of Connecticut.

      (d) SEVERABILITY. If any part of this Agreement is found to be invalid,
illegal or unenforceable by a court, the other parts of this Agreement will stay
valid and enforceable and will be read as if the invalid or unenforceable part
had not been included.

      (e) CAPTIONS. The headings of the various sections, subsections and
paragraphs of this Agreement are included for convenient reference only, and
shall not be included in the interpretation of this Agreement.

      (f) BINDING EFFECT. This Agreement shall be binding upon Debtor and
Debtor's successors and assigns (or, if applicable, executors and heirs). This
Subsection 6(f) shall not, however, be construed as permitting Debtor to assign
Debtor's rights and/or responsibilities under this Agreement. Debtor understands
and agrees that such an assignment is prohibited. Secured Party is permitted to
assign its rights and benefits under this Agreement with or without advance
notice to Debtor.

      (g) MODIFICATIONS. This Agreement may be amended only by a written
agreement signed by Debtor and Secured Party.

      (h) NO WAIVER. Neither failure or delay on Secured Party's part to
exercise any right, power or privilege under this Agreement shall operate as a
waiver thereof, nor shall any single or partial exercise of any right, power, or
privilege under this Agreement preclude any other or further exercise thereof or
the exercise of any other right, power or privilege.

      (i) WAIVER OF NOTICE, HEARING AND BOND FOR PREJUDGMENT REMEDY. DEBTOR
HEREBY ACKNOWLEDGES THAT THE TRANSACTION OF WHICH THIS AGREEMENT IS A PART IS A
COMMERCIAL TRANSACTION, AND TO THE EXTENT ALLOWED UNDER CHAPTER 903a OF THE
CONNECTICUT GENERAL STATUTES OR BY OTHER APPLICABLE LAW, HEREBY WAIVES (A) ALL
RIGHTS TO NOTICE AND PRIOR COURT HEARING OR COURT ORDER IN CONNECTION WITH ANY
AND ALL PREJUDGMENT REMEDIES TO WHICH ANY HOLDER OF THIS AGREEMENT MAY BECOME
ENTITLED BY VIRTUE OF ANY DEFAULT UNDER A PROVISION OF THIS AGREEMENT OR UNDER
ANY OTHER AGREEMENT RELATED TO THIS AGREEMENT, AND (B) ALL RIGHTS TO REQUEST
THAT THE HOLDER OF THIS AGREEMENT POST A BOND, WITH OR WITHOUT SURETY, TO
PROTECT DEBTOR OR ANY OTHER PERSON OR ENTITY LIABLE UNDER THIS AGREEMENT AGAINST
DAMAGES THAT MAY BE CAUSED BY ANY PREJUDGMENT REMEDY SOUGHT OR OBTAINED BY THE
HOLDER OF THIS AGREEMENT BY VIRTUE OF ANY DEFAULT UNDER THE PROVISIONS OF THIS
AGREEMENT OR UNDER ANY SECURITY AGREEMENT RELATED TO THIS AGREEMENT, AND DEBTOR
HEREBY CONSENTS TO THE ISSUANCE OF ANY SUCH PREJUDGMENT REMEDY WITHOUT SUCH A
BOND.

      (j) WAIVER OF JURY TRIAL. DEBTOR HEREBY KNOWINGLY, VOLUNTARILY,
INTENTIONALLY AND IRREVOCABLY WAIVES ANY AND ALL RIGHT TO A TRIAL BY JURY IN ANY
ACTION OR PROCEEDING TO ENFORCE OR DEFEND OR CLARIFY ANY RIGHT, POWER, REMEDY OR
DEFENSE ARISING OUT OF OR RELATED TO THIS AGREEMENT, OR THE TRANSACTIONS
CONTEMPLATED HEREIN, WHETHER SOUNDING IN TORT OR CONTRACT OR OTHERWISE, OR WITH
RESPECT TO ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER VERBAL
OR WRITTEN) OR ACTIONS OF ANY PARTY; AND DEBTOR FURTHER AGREES THAT ANY SUCH
ACTION OR PROCEEDING SHALL BE TRIED BEFORE A JUDGE AND NOT BEFORE A JURY. DEBTOR
FURTHER WAIVES ANY RIGHT TO SEEK TO CONSOLIDATE ANY SUCH LITIGATION IN WHICH A
JURY TRIAL HAS BEEN WAIVED WITH ANY OTHER LITIGATION IN WHICH A JURY TRIAL
CANNOT OR HAS NOT BEEN WAIVED. FURTHER, DEBTOR HEREBY CERTIFIES THAT NO
REPRESENTATIVE OR AGENT OF THE SECURED PARTY, NOR THE SECURED PARTY'S COUNSEL,
HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT THE SECURED PARTY WOULD NOT, IN
THE EVENT OF SUCH LITIGATION, SEEK TO ENFORCE THIS WAIVER PROVISION. DEBTOR
ACKNOWLEDGES THAT THE PROVISIONS OF THIS PARAGRAPH ARE A MATERIAL INDUCEMENT TO
THE SECURED PARTY'S DECISION TO ENTER INTO THE TRANSACTIONS CONTEMPLATED BY THIS
AGREEMENT.

      (k) CONSENT OF JURISDICTION; SERVICE OF PROCESS. DEBTOR HEREBY CONSENTS TO
THE JURISDICTION OF ANY STATE OR FEDERAL COURT LOCATED WITHIN THE STATE OF
CONNECTICUT AND WAIVES PERSONAL SERVICE OF ANY AND ALL PROCESS UPON DEBTOR, AND
CONSENTS THAT ALL SUCH SERVICE OF PROCESS BE MADE BY

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REGISTERED MAIL DIRECTED TO THE APPLICABLE ADDRESS STATED BELOW AND SERVICE SO
MADE SHALL BE DEEMED TO BE COMPLETED UPON ACTUAL RECEIPT THEREOF.

SIGNATURE OF DEBTOR. BY SIGNING BELOW, YOU AGREE, AS A DEBTOR, TO THE TERMS AND
CONDITIONS OF THIS AGREEMENT AS OF THE DATE OF THIS AGREEMENT SHOWN ABOVE.

DEBTOR:

CAS MEDICAL SYSTEMS, INC.

-------------------------
BY:   JEFFERY BAIRD
ITS:  CFO

ADDRESS:

44 EAST INDUSTRIAL ROAD
BRANFORD, CT  06405

                                   Page 4 of 4Exhibit 10.5

EMPLOYMENT AGREEMENT

This EMPLOYMENT
AGREEMENT (the “Agreement”) is made and entered into as of the    
day of                          
(the “Effective Date”), by and between Accelrys, Inc., a Delaware corporation (hereinafter, the “Company”), and                             , an individual (hereinafter, “Executive”).

RECITALS

WHEREAS,
Executive has been employed by Company as                             .  The Company and Executive desire to continue
the employment relationship on the terms set forth herein.

NOW,
THEREFORE, in consideration of their mutual promises and
intending to be legally bound, the parties agree as follows:

1.   EMPLOYMENT.

(a)  Title and Location.  The
Company shall continue to employ Executive as its                              upon the terms and conditions set forth in
this Agreement, and Executive hereby accepts such employment.  Executive will be based in San Diego,
California.

(b)  Duties and Responsibilities. 
Executive’s duties, powers and responsibilities in such capacity shall
be those which are customary for such position, as may be determined from time
to time and assigned by Executive’s supervisor. 
Executive agrees to perform and discharge such duties well and
faithfully and to be subject to the supervision and direction of Executive’s
supervisor.

(c)  No Conflicts. 
Executive’s position under this Agreement is a full-time position.  Executive agrees to devote Executive’s full
business time, effort, attention and energies to this position.  Executive will not render any professional
services or engage in any activity that might be competitive with, adverse to
the best interest of, or create the appearance of a conflict of interest with,
the Company.  Executive agrees to abide
by the policies, rules and regulations of the Company as they may be amended
from time to time.

(d)  No Other Agreement. 
Executive represents and warrants the Executive is not bound by any
employment, consulting, noncompetition, confidentiality, finders, marketing or
other agreement or arrangement that would, or might reasonably be expected to,
prohibit or restrict Executive in any manner from performing Executive’s duties
and obligations hereunder.

2.   TERM.  The
term of this Agreement shall commence on the Effective Date and shall continue
thereafter until the effective date of termination set forth in Section 13,
below (“Term”).

3.   COMPENSATION.  As
compensation for Executive’s services under this Agreement:

(a)  Base Salary.  The
Company will pay Executive an initial base salary of $              per year (“Base Salary”), to be paid
semi-monthly in equal installments, less normally applicable payroll
deductions.  Executive’s Base Salary will
be subject to annual review and adjustment by the Board or a duly appointed committee
thereof, in either case in its sole discretion.

(b)  Incentive Bonus. 
Executive shall be eligible to participate in the Company’s management
incentive plan, as may be implemented and modified by the Company at its sole
discretion.  The Company and Executive
agree that Executive’s initial bonus target percentage will be                % of Executive’s initial Base Salary.  Such amounts, payable to Executive under this
plan or any other bonus program, shall be referred to herein as the “Incentive
Bonus.”  The Incentive Bonus for any year
will be paid after the conclusion of the applicable fiscal year, based upon the
Board of Directors’

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determination as to the amount of such bonus earned pursuant to the
terms of the management incentive plan, provided Executive is employed by the
Company or its successor on that date.

(c)  Vacation and Other Benefits.  Executive shall be entitled to the benefit of paid vacation, holidays,
group medical, accident and long-term disability insurance and other fringe
benefits and tax qualified retirement plans as the Company shall make available
from time to time to its other similarly situated senior executives.  The Company may change or amend its benefits
as it deems appropriate from time to time.

4.   TERMINATION AND EFFECT OF TERMINATION. 
Executive’s employment hereunder is AT WILL and may be
terminated at any time by the Company for any reason.  In the event of termination of Executive’s
employment, the Company shall have no liability to Executive for compensation
or benefits, except as specified in this Section 4 or as required by the
Company’s benefits policy.

(a)  Termination by the Company for Cause. 
Executive’s employment may be terminated by the Company for Cause at any
time upon delivery of written notice to Executive.  Upon such a termination, the Company shall
have no obligation to Executive other than the payment of all accrued, but
unpaid, Base Salary and any unpaid expenses or expense reimbursements prior to
the effective date of such termination. 
For purposes of this Agreement, “Cause” means the occurrence of any one
or more of the following events or conditions:

(i)  any material failure on the part of Executive
(other than by reason of disability as provided in Section 4(e) below) to
faithfully and professionally carry out Executive’s duties or to comply with
any other material provision of this Agreement, which failure continues for ten
(10) days after written notice detailing such failure is delivered by the
Company; provided, that the Company shall not be required to provide such
notice in the event that such failure (A) is not susceptible to remedy or
(B) relates to the same type of acts or omissions as to which notice has been
given on a prior occasion;

(ii)  Executive’s dishonesty (which shall include
without limitation any misuse or misappropriation of the Company’s assets), or
other willful misconduct, if such dishonesty or other willful misconduct is
intended to or likely to materially injure the business of the Company;

(iii)  Executive’s conviction of any felony or of
any other crime involving moral turpitude, whether or not relating to Executive’s
employment;

(iv)  Executive’s insobriety or use of drugs,
chemicals or controlled substances either (A) in the course of performing
Executive’s duties and responsibilities under this Agreement, or (B) otherwise
affecting the ability of Executive to perform the same;

(v)  Executive’s failure to comply with a lawful
written direction of the Company or the Board of Directors; or

(vi)  Any wanton or willful
dereliction of duties by Executive.

The existence of any of the
foregoing events or conditions shall be determined by the Company in the
exercise of its reasonable judgment.

(b)  Involuntary Termination by the Company
without Cause or Resignation by Executive with Good Reason.  The
Company may involuntarily terminate Executive’s employment under this Agreement
at any time during the Term without Cause upon delivery of written notice to
Executive, and Executive may resign at any time during the Term with Good
Reason (as defined in Section 4(c), below). 
Except as provided by Section 4(g) hereof concerning termination in
connection with a Change of Control (as defined in such Section 4(g)), if,
during the Term, Executive’s employment is terminated involuntarily by the
Company without Cause pursuant to this Section 4(b) or Executive resigns for
Good Reason pursuant to Section 4(c) during the Term, the Company shall:

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(i)  pay Executive all compensation and benefits
accrued, but unpaid, up to the effective date of termination; and

(ii)  provided that, and for so long as, Executive
complies with Executive’s obligations set forth in Section 7, below, continue
to pay Executive each month (in accordance with the Company’s regular payroll
practices) an amount equal to one twelfth (1/12) Executive’s annual Base Salary
in effect as of the effective date of termination, for a period of twelve (12)
months after the effective date of termination;

(iii) pay
Executive a pro-rata lump sum amount, prorated for the number of full months
during the applicable fiscal year during which Executive had been employed by
the Company prior to his/her termination, of the bonus that would have been
payable to Executive had she/he remained employed throughout the year.  Such bonus will be based upon the percentage
achievement against objectives as determined by the Company’s board of
directors at the conclusion of the applicable fiscal year to have been earned
pursuant to the terms of the Company’s management incentive plan; and

(iv) provided that, and
for so long as, Executive complies with his/her obligations set forth in
Section 7, below, pay Executive, in twelve equal installments, an amount
obtained by multiplying Executive’s target bonus percentage in effect as of the
effective date of termination (expressed as a decimal) times Executive’s annual
Base Salary in effect as of such date of termination

(v)  Reimburse or otherwise pay Executive’s
Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) payments for
medical and dental insurance under the Company’s applicable plans for the
lesser of (x) twelve months from the effective date of termination or (y) the
date upon which Executive becomes eligible for medical coverage from a new
employer.  Executive shall notify the
Company no later than 15 days after becoming eligible for such coverage.

(c) 
Termination by Executive for Good Reason.  Executive may terminate his/her employment
under this Agreement during the Term for Good Reason upon the provision of
advance written notice to the Company specifying in reasonable detail the
events or conditions upon which Executive is basing such termination.  The Company will be given the opportunity,
but shall have no obligation, to “cure” such events or conditions within thirty
(30) days after the provision by Executive of such notice.  Subject to the provisions of Section 4(g)
hereof (concerning termination in connection with a Change of Control), if the
Company elects in a written notice to Executive not to cure such events or
conditions or otherwise fails to so cure such events or conditions within such
thirty (30) day period, Executive may terminate Executive’s employment with the
Company for Good Reason effective at the end of such 30 day notice period.

For purposes of this
Agreement, “Good Reason” means any one or more of the following events or
conditions:

(i)  the Company’s breach of any of the material
terms of this Agreement;

(ii)  the Company’s relocating its office at which
Executive is principally employed on the Effective Date of this Agreement, to a
location which is more than fifty (50) miles from both Executive’s residence
and the offices of the Company at which Executive is principally employed on
the date of execution of this Agreement, and requiring Executive to commute to
such location without Executive’s written consent;

(iii)  a material diminution in Executive’s title,
duties or responsibilities or conditions of his/her employment from those in
effect on the date of execution of this Agreement; or

(iv)  a reduction of more than 10% in Executive’s
annual Base Salary then-in-effect without Executive’s consent (other than such
a reduction applicable generally to other senior executives of the Company)

Solely for
purposes of Section 4(g) below, “Good Reason” also means a reduction in the
Executive’s target bonus.  For the
avoidance of doubt, other than in the event of Change of Control Termination
Without Cause or Resignation for Good Reason, as set forth in Section 4(g),
below, Executive’s bonus target percentage may be modified by the Board or a
duly appointed committee thereof at any time at the Board’s or such committee’s
sole discretion.

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(d)  Termination by Executive without Good
Reason (Voluntary Resignation).  Executive may voluntarily
resign his position and terminate his/her employment under this Agreement
without Good Reason at any time.  Upon
such a termination, the Company shall have no obligation to pay compensation
and provide benefits to Executive other than the payment of all accrued, but
unpaid, Base Salary and any other unpaid expenses or expense reimbursements
prior to the effective date of such termination.

(e)  Disability.  If
Executive becomes disabled for more than one hundred eighty (180) days in any
twelve (12) month period, the Company shall have the right to terminate
Executive’s employment upon written notice to Executive.  Executive shall be deemed disabled for
purposes of this Agreement either (i) if Executive is deemed disabled for
purposes of any long-term disability insurance policy paid for by the Company
and at the time in effect, or (ii) if in the exercise of the Company’s
reasonable judgment, due to accident, mental or physical illness, Executive
cannot perform Executive’s duties.  In
the event that during the Term, the Company shall terminate Executive due to
disability, as described above, Executive shall be entitled to receive the
benefits set forth in Section 4(b) (i.e., as if Executive were terminated by
the Company without Cause).

(f)  Death.  In
the event of the death of Executive, this Agreement shall automatically
terminate and any obligation to continue to pay compensation and benefits shall
cease as of the date of death, except for the payment of all accrued, but
unpaid, Base Salary and any other unpaid expenses or expense reimbursement prior
to the date of death.

(g)  Change of Control Termination Without
Cause or Resignation for Good Reason.

(i)  Benefits.  Subject to Section 4(i) below, in the event, Executive’s employment under
this Agreement is terminated by the Company involuntarily without Cause at any
time during the period commencing two (2) months before and ending eighteen
(18) months after the occurrence of a Change of Control during the Term, or
Executive terminates employment with the Company for Good Reason at any time
during the period commencing two (2) months before and ending eighteen (18)
months after the occurrence of a Change of Control during the Term, the Company
shall, in lieu of providing Executive with any amounts or benefits otherwise
payable under this Agreement:

(A)  pay Executive all compensation and benefits
accrued, but unpaid, up to the effective date of termination; and

(B)  provided that, and for so long as, Executive
complies with his/her obligations set forth in Section 7, below, continue to
pay Executive each month in accordance with the Company’s regular payroll
practices an amount equal to two twelfth Executive’s annual Base Salary in
effect as of the effective date of termination; for a period of twelve months
after the effective date of termination; and

(C) pay Executive
a pro-rata lump sum amount, prorated for the number of full months during the
applicable fiscal year during which Executive had been employed by the Company
prior to his/her termination, of the bonus that would have been payable to
Executive had she/he remained employed throughout the year.  Such bonus will be based upon the percentage
achievement against objectives as determined by the Company’s board of
directors at the conclusion of the applicable fiscal year to have been earned
pursuant to the terms of the Company’s management incentive plan; and

(D)
provided that, and for so long as, Executive complies with his/her obligations
set forth in Section 7, below, pay Executive, each month for a period of twelve
(12) months, in accordance with the Company’s payroll practices, two twelfths
(2/12) of an amount obtained by multiplying Executive’s target bonus percentage
in effect as of the effective date of termination (expressed as a decimal)
times Executive’s annual Base Salary in effect as of such date of termination .

(E)  Reimburse or otherwise pay Executive’s COBRA
payments for medical and dental insurance under the Company’s applicable plans
for the lesser of (x) twelve months from the effective date of

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termination
or (y) the date upon which Executive becomes eligible for medical coverage from
a new employer.  Executive shall notify
the Company no later than 15 days after becoming eligible for such coverage.

Anything
contained in this Section 4(g)(i) to the contrary notwithstanding, Executive
shall not be entitled to any of the benefits set forth in this Section 4(g)(i)
if Executive resigns and terminates such employment voluntarily (other than for
Good Reason) or is terminated by the Company (including without limitation any
Acquiring Company) for Cause.

For
purposes of Sections 4(g)(i) and (ii) hereof, the term the “Company” shall
include any Acquiring Company (as defined below) and all obligations of the
Company under such Section shall be assumed by any Acquiring Company.

(ii) 
Stock Options. 
Subject to Section 4(i) below, in the event Executive’s employment under
this Agreement is terminated by the Company involuntarily without Cause at any
time during the period commencing two (2) months before and ending eighteen
(18) months after the occurrence of a Change of Control during the Term or  Executive terminates his employment with the
Company for Good Reason at any time during the period commencing two (2) months
before and ending eighteen (18) months after the occurrence of a Change of Control
during the Term:

 (A) notwithstanding anything to the contrary
contained in any stock option or other equity award plan of the Company (“Equity
Incentive Plan”), any and all stock options (“Stock Options”), stock
appreciation rights (“SARs”), restricted stock units or restricted stock
(collectively “Equity Rights”) which were granted by the Company to Executive
prior to the Term or will be granted to Executive during the Term shall
immediately accelerate and become vested and exercisable upon the date of
termination of Executive’s employment. 
The expiration date of the exercise period for such Stock Options and
SARs shall be as set forth in the applicable Stock Option Plan and agreement;
provided that any Stock Option or SAR granted after execution of this Agreement
may be exercised during the earlier of (1) one (1) year following the date of
termination or (2) the expiration of the term of the Stock Option or SAR, and
the Company shall take all actions necessary or advisable to give effect to
this Section 4(g)(ii)(A); and

(B)
all Equity Rights  held by Executive
which were granted to Executive prior to the execution of this Agreement,
including those which have been accelerated as set forth in section
4(g)(ii)(A), above, shall be exercisable pursuant to the terms of the
agreement(s) under which they were granted, provided that any Stock Option
granted to Executive prior to the Term which on any date during the Term has both i) a shorter exercise period than set forth
in Section 4(g)(ii)(A), above, in the event of a Change of Control termination
or resignation for Good Reason as set forth herein, and ii) an exercise
price higher than the closing price of Accelrys common stock, as listed in the
NASDAQ National Market at any time after execution of this Agreement, shall be
automatically deemed to be modified on such date so that the Stock Option may
be exercised during the later of (1) December 31st of the year in which such option would have
otherwise expired pursuant to the exercise terms of the applicable agreement,
or (2) two and one half months following the date in which such option would
have otherwise expired pursuant to the exercise terms of the applicable
agreement, but in no event later than the date of the expiration of the term of
the Stock Option, and the Company shall take all actions necessary or advisable
to give effect to this Section 4(g)(ii)(B).

Anything
contained in this Section 4(g)(ii) to the contrary notwithstanding, Executive
shall not be entitled to any of the benefits set forth in this Section 4(g)(ii)
if Executive resigns and terminates such employment voluntarily (other than for
Good Reason) or is terminated by the Company (including without limitation any
Acquiring Company) for Cause.

(iii) 
Definition of “Change of Control.”  For purposes of this Agreement, a “Change of
Control” of the Company shall mean the occurrence of any of the following
events or circumstances:

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(A) any “person” (within the meaning of Section 13(d)
or 14(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)),
including a “group” within the meaning of such Section 13(d) but excluding the
Company and any of its subsidiaries and any employee benefit plan sponsored or
maintained by the Company or any subsidiary thereof (a “Person”), shall become
the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act),
directly or indirectly, of securities of the Company representing fifty percent
(50%) or more of the combined voting power of the Company’s then outstanding
securities entitled to vote generally in the election of directors (“Company
Voting Securities”); or

(B) the consummation of a merger or consolidation of
the Company, or the acceptance by the stockholders of the Company of shares in
a share exchange, where the Persons who were the beneficial owners of Company
Voting Securities, outstanding immediately prior to such merger, consolidation
or share exchange, do not beneficially own, directly or indirectly, immediately
after such merger, consolidation or share exchange, securities representing
more than fifty percent (50%) of the combined voting power of the then
outstanding Company Voting Securities or voting securities of the Acquiring
Company in such merger, consolidation or share exchange, in substantially the
same proportions as their ownership of the Company Voting Securities
immediately prior to such merger, consolidation or share exchange; or

(C) a sale, exchange or other disposition or transfer
(in one transaction or a series of related transactions) of all or
substantially all of the assets of the Company; provided, that a Change of
Control shall not be deemed to have occurred where (x) the Company sells,
exchanges or otherwise disposes or transfers all or substantially all of its
assets to another corporation which is beneficially owned, directly or
indirectly, immediately following such transaction by the holders of Company
Voting Securities in substantially the same proportions as their ownership of
the Company Voting Securities immediately prior to such transaction and (y) such
corporation expressly assumes this Agreement; or

(D) such time as the Continuing Directors (as defined
below) do not constitute at least a majority of the Board of Directors of the
Company (or, if applicable, of a successor to the Company), where the term “Continuing
Director” means at any date a member of the Board who was (x) a member of the
Board on the date of this Agreement or (y) nominated or elected subsequent to
such date by at least a majority of the directors who were Continuing Directors
at the time of such nomination or election or whose election to the Board was
recommended or endorsed by at least a majority of the directors who were
Continuing Directors at the time of such nomination or election (it being
understood that no individual whose initial assumption of office occurred as a
result of an actual or threatened election contest with respect to the election
or removal of directors or other actual or threatened solicitation of proxies
or consents by or on behalf of a Person other than the Board shall be a
Continuing Director).

(iv) 
Definition of “Acquiring Company.”  For purposes of Section 4
of this Agreement, an “Acquiring Company” shall mean the resulting or surviving
corporation, or the company issuing cash or securities (or its ultimate parent
company), in a merger, consolidation or share exchange involving the Company,
or the successor corporation to the Company (whether in any such transaction or
otherwise).

(h)  Section 409A.  Any cash severance to be paid pursuant to
Sections 4(b), (c), or (g), or any portion thereof, as well as any payments due
under section 4(i) hereof, will not be paid during the six-month period
following Executive’s termination of employment, unless the Company reasonably
determines that paying such amounts immediately following Executive’s
termination of employment would not result in the imposition of any tax under
Section 409A of the Code (“Section 409A”), in which case such amounts shall be
paid in accordance with normal payroll practices.  If any amount of cash severance is not paid
to Executive as a result of the previous sentence, on the first day following
such six-month period, the Company will pay Executive a lump-sum amount equal
to the cumulative amounts that would have otherwise been paid to Executive
during such six-month time period pursuant to Sections 4(b), (c), (g) or (i).),
but were not paid.  Thereafter, Executive
will receive his/her remaining cash severance payments pursuant to Sections
4(b) and (c) or (g) in accordance with the Company’s normal payroll practices.

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(i)  Golden Parachute Tax Provisions.  In the event it is determined that any payments by the Company to or
for the benefit of Executive under this Agreement or otherwise pursuant to
which Executive is entitled to receive payments or benefits (such payments and
benefits collectively, the “Payments”) shall be subject to an excise tax by
reason of the operation of Section 4999 of the Internal Revenue Code of 1986,
as amended (the “Code”), relating to parachute payments, or any interest or
penalties are incurred by Executive with respect to such excise tax (such
excise tax together with any such interest and penalties collectively, the “Excise Tax”), then Executive shall receive (i) a
payment from the Company sufficient to pay the Excise Tax, and (ii) an
additional payment from the Company sufficient to pay such Excise Tax and
federal and state income taxes arising from the payments made by the Company to
Executive pursuant to this sentence (such additional payments collectively, the
“Reimbursement Payments”).  For purposes
of determining the amount of the Reimbursement Payments, Executive shall be
deemed to (i) pay federal income taxes at the highest marginal rates of
federal income taxation for the calendar year in which the Reimbursement
Payments are to be made and (ii) pay applicable state and local income
taxes at the highest marginal rate of taxation for the calendar year in which
the Reimbursement Payments are to be made, net of the maximum reduction in
federal income taxes which could be obtained from deduction of such state and
local taxes.

Notwithstanding the
foregoing, if it shall be determined that Executive is entitled to
Reimbursement Payments under the preceding paragraph, but that the Payments
would not be subject to the Excise Tax if the Payments were reduced by an
amount that is less than 10% of the portion of the Payments that would be
treated as parachute payments under Section 280G of the Code, then the
amounts payable to Executive under this Agreement shall be reduced (but not
below zero) to the maximum amount that could be paid to Executive without
giving rise to the Excise Tax (the “Safe Harbor Cap”), and no Reimbursement
Payments shall be made to Executive.  The
reduction of the amounts payable hereunder, if applicable, shall be made by
reducing first the payments under Section 4(g)(i)(D), unless an
alternative method of reduction is elected by Executive.  For purposes of reducing the Payments to the
Safe Harbor Cap, only amounts payable under this Agreement (and no other
Payments) shall be reduced.  If the
reduction of the amounts payable hereunder would not result in a reduction of
the Payments to the Safe Harbor Cap, no amounts payable under this Agreement
shall be reduced pursuant to this provision.

Unless the Company and
Executive otherwise agree in writing, the determination of Executive’s Excise
Tax liability and the amount required to be paid under this paragraph shall be
made in writing by the Company’s accountants or attorneys (the “Advisors”).  In the event that the Excise Tax incurred by
Executive is determined by the Internal Revenue Service to be greater or lesser
than the amount so determined by the Advisors, the Company and Executive agree
to promptly make such payment, including interest and any tax penalties, to the
other party as the Advisors reasonably determine is appropriate to ensure that
the net economic effect to Executive under this paragraph, on an after-tax
basis, is as if the Excise Tax did not apply to Executive.  For purposes of making the calculations
required by this paragraph, the Advisors may make reasonable assumptions and
approximations concerning applicable taxes and may rely on interpretations of
the Code for which there is a “substantial authority” tax reporting
position.  The Company and Executive
shall furnish to the Advisors such information and documents as the Advisors
may reasonably request in order to make a determination under this
Section.  The Company shall bear all
costs the Advisors may reasonably incur in connection with any calculations
contemplated by this paragraph.

(j)  Liquidated Damages/Release.  Executive acknowledges that, upon executing a release as set forth
below, any payments and benefits resulting from a termination of Executive’s
employment under Section 4(b), (c) or (g) of this Agreement which are not
required by law are in satisfaction of any and all claims that Executive may
have against the Company or any Acquiring Company (other than benefits under
the Company’s benefit plans that by their terms survive termination of
employment, benefits under the Consolidated Omnibus Budget Reconciliation Act
of 1985, as amended, and rights to indemnification under certain
indemnification arrangements for officers of the Company), and represent
liquidated damages (and not a penalty). 
The Company will require that Executive execute and not revoke a
separation agreement and a release of all claims in favor of the Company in a
form reasonably satisfactory to the Company prior to, and as a condition to,
receipt of such payments and benefits.

5.  TAXES. 
Except as set forth in Section 4(i) above, Executive will be responsible
for the payment of any tax liability incurred as a result of this
Agreement.  The Company may withhold tax
on any payments or benefits provided to Executive as required by law or
regulation. The Executive is solely responsible and liable for the satisfaction
of all taxes and penalties that may arise under Section 409A of the Code, and
the Company shall not have any obligation to indemnify or otherwise hold
Executive harmless from any or all of such taxes.  The Company shall have the sole discretion to
interpret the requirements of the Code, including Section 409A, for purposes of
this provision, but shall only act in accordance with written advice from its Advisors

 7
 

 

Nevertheless, if the Company
or Executive determine that delaying severance payments will avoid subjecting
Executive to Section 409(A) taxes and penalties, the Company shall modify the
payment terms of this Agreement to the limited extent, and for the minimum
deferral period, that the Company reasonably determines is necessary to avoid
subjecting Executive to Section 409A penalties. 
..

6.  CONFIDENTIAL INFORMATION. 
Except as reasonably necessary to perform Executive’s duties hereunder,
Executive agrees not to reveal to any other person or entity or use for
Executive’s own benefit any confidential information of or about the Company or
its operations, both during and after Executive’s employment under this
Agreement, including without limitation marketing plans, financial information,
key personnel, Executives’ capabilities, salaries and benefits, customer lists,
pricing and cost structures, operation methods and any other information not
available to the public, without the Company’s prior written consent.  These obligations are in addition to any
similar obligations set forth in the Company’s Invention and Non-Disclosure
Agreement.

7.  NON-COMPETITION;
NON-SOLICITATION; NON-DISPARAGEMENT.

(a)  Restrictions.  For
so long as Executive is receiving benefits pursuant to section 4, above,
Executive shall not, directly or indirectly:

(i)
be employed by, engaged in or participate in the ownership, management,
operation or control of, or act in any advisory or other capacity (including as
an individual, principal, agent Executive, consultant or otherwise) for, any
Competing Entity which conducts its business within the Territory (as the terms
Competing Entity and Territory are hereinafter defined); provided, however,
that notwithstanding any of the foregoing, Executive may make solely passive
investments in any Competing Entity the common stock of which is “publicly held”
and of which Executive shall not own or control, directly or indirectly, in the
aggregate securities which constitute 5% or more of the voting power of such
Competing Entity;

(ii)
solicit or divert any business or any customer or known prospective customer
from the Company or assist any person or entity in doing so or attempting to do
so;

(iii)
cause or seek to cause any person or entity to refrain from dealing or doing
business with the Company or assist any person or entity in doing so; or

(iv)
solicit for employment, or advise or recommend to any other person or entity
that he, she or it employ or solicit for employment or retention as an Executive
or consultant, any person who is an Executive of, or exclusive consultant to,
the Company (provided that this prohibition shall not apply in the event of a
Change of Control Termination or Resignation, as set forth in Section 4(g),
above).

(v) make any derogatory or disparaging statement
regarding the Company, its affiliates, directors, or its employees.

In the
event Executive violates any of the foregoing restrictions, all payments or
benefits being provided pursuant to Sections 4(b) and (c) shall immediately
cease.

(b)  Definitions.  For purposes of this Section 7:

(i) “Competing Entity”
means any entity which is presently or hereafter engaged in any business of the
type or character engaged in by the Company or any of its subsidiaries
including, without limitation, (A) the business of developing, marketing or
selling software programs which use molecular simulation or analysis to predict
chemical or biological activities; (B) the business of developing, marketing or
selling software programs that store, manage or analyze chemical or biological
information or (C) any business which is otherwise competitive with a business
conducted by the Company or any of its subsidiaries; and

(ii) “Territory” means
North America, Europe and Japan.

 8
 

 

Notwithstanding anything in the above to the contrary,
Executive may engage in the activities set forth in Section 10(a) hereof with
the prior written consent of the Company, which consent shall not be
unreasonably withheld.  Further, in
determining whether a specific activity by Executive for a Competing Entity
shall be permitted, the Company will consider, among other things, the nature
and scope of (A) the duties to be performed by Executive and (B) the
business activities of the Competing Entity at the time of Executive’s proposed
engagement by such entity.

(c)  Acknowledgement.  Executive acknowledges and agrees that the
covenants set forth in this Section are reasonable and necessary in all
respects for the protection of the Company’s legitimate business interests (including
without limitation the Company’s confidential, proprietary information and
trade secrets and client good-will, which represents a significant portion of
the Company’s net worth and in which the Company has a property interest).  Executive acknowledges and agrees that, in
the event that Executive breaches any of the covenants set forth in this
Section (other than that provided for in Section 10(a)(i)), the Company
shall be irreparably harmed and shall not have an adequate remedy at law; and, therefore,
in the event of such a breach, the Company shall be entitled to injunctive
relief, in addition to (and not exclusive of) any other remedies (including
monetary damages) to which the Company may be entitled under law.  If any covenant set forth in this Section 7
is deemed invalid or unenforceable for any reason, it is the parties’ intention
that such covenants be equitably reformed or modified to the extent necessary
(and only to such extent to) render it valid and enforceable in all
respects.  In the event that the time
period and geographic scope referenced above is deemed unreasonable, overbroad,
or otherwise invalid, it is the parties’ intention that the enforcing court
shall reduce or modify the time period and/or geographic scope to the extent
necessary (and only to such extent necessary) to render such covenants
reasonable, valid and enforceable in all respects.

8. 
ARBITRATION.

(a)  General.
In consideration of Executive’s service to the Company, its promise to
arbitrate all employment related disputes and Executive’s receipt of the
compensation, pay raises and other benefits paid to Executive by the Company,
at present and in the future, Executive agrees that any and all controversies,
claims, or disputes with anyone (including the Company and any employee,
officer, director, shareholder or benefit plan of the Company in their capacity
as such or otherwise) arising out of, relating to, or resulting from Executive’s
service to the Company under this Agreement or otherwise or the termination of
Executive’s service with the Company, including any breach of this Agreement,
will be subject to binding arbitration under the Arbitration Rules set forth in
California Code of Civil Procedure Section 1280 through 1294.2, including
Section 1283.05 (the “Rules”) and pursuant to California law. Disputes which
Executive agrees to arbitrate, and thereby agrees to waive any right to a trial
by jury, include any statutory claims under state or federal law, including,
but not limited to, claims under Title VII of the Civil Rights Act of 1964, the
Americans with Disabilities Act of 1990, the Age Discrimination in Employment
Act of 1967, the Older Workers Benefit Protection Act, the California Fair
Employment and Housing Act, the California Labor Code, claims of harassment,
discrimination or wrongful termination and any statutory claims. Executive
further understands that this Agreement to arbitrate also applies to any
disputes that the Company may have with Executive.

(b)  Procedure.
Executive agrees that any arbitration will be administered by the American
Arbitration Association (“AAA”) and that a neutral arbitrator will be selected
in a manner consistent with its National Rules for the Resolution of Employment
Disputes. The arbitration proceedings will allow for discovery according to the
rules set forth in the National Rules for
the Resolution of Employment Disputes or California Code of Civil Procedure.
Executive agrees that the arbitrator will have the power to decide any motions
brought by any party to the arbitration, including motions for summary judgment
and/or adjudication and motions to dismiss and demurrers, prior to any
arbitration hearing. Executive agrees that the arbitrator will issue a written
decision on the merits. Executive also agrees that the arbitrator will have the
power to award any remedies, including attorneys’ fees and costs, available
under applicable law. Executive understands the Company will pay for any
administrative or hearing fees charged by the arbitrator or AAA except that
Executive will pay the first $125.00 of any filing fees associated with any
arbitration Executive initiates. Executive agrees that the arbitrator will
administer and conduct any arbitration in a manner consistent with the Rules
and that to the extent that the AAA’s National Rules for the Resolution of
Employment Disputes conflict with the Rules, the Rules will take precedence.

 9
 

 

(c)  Remedy.
Except as provided by the Rules, arbitration will be the sole, exclusive and
final remedy for any dispute between Executive and the Company. Accordingly,
except as provided for by the Rules, neither Executive nor the Company will be
permitted to pursue court action regarding claims that are subject to
arbitration. Notwithstanding, the arbitrator will not have the authority to
disregard or refuse to enforce any lawful Company policy, and the arbitrator
will not order or require the Company to adopt a policy not otherwise required
by law which the Company has not adopted.

(d)  Availability of
Injunctive Relief. In addition to the right under the
Rules to petition the court for provisional relief, Executive agrees that any
party may also petition the court for injunctive relief where either party
alleges or claims a violation of this Agreement or the Confidentiality
Agreement or any other agreement regarding trade secrets, confidential
information, nonsolicitation or Labor Code §2870. In the event either party
seeks injunctive relief, the prevailing party will be entitled to recover
reasonable costs and attorneys’ fees.

(e)  Administrative
Relief. Executive understands that this Agreement does
not prohibit Executive from pursuing an administrative claim with a local,
state or federal administrative body such as the Department of Fair Employment
and Housing, the Equal Employment Opportunity Commission or the workers’
compensation board. This Agreement does, however, preclude Executive from
pursuing court action regarding any such claim.

(f)  Voluntary
Nature of Agreement. Executive acknowledges and agrees
that Executive is executing this Agreement voluntarily and without any duress
or undue influence by the Company or anyone else. Executive further
acknowledges and agrees that Executive has carefully read this Agreement and
that Executive has asked any questions needed for Executive to understand the
terms, consequences and binding effect of this Agreement and fully understand
it, including that Executive is waiving Executive’s right to a jury trial.
Finally, Executive agrees that Executive has been provided an opportunity to
seek the advice of an attorney of Executive’s choice before signing this
Agreement.

9.  WAIVER.  The waiver by the Company of any breach of
any provision of this Agreement shall not operate or be construed as a waiver
of any subsequent breach by Executive of any provision of this Agreement.

10.  SEVERABILITY.  The parties have carefully reviewed the
provisions of this Agreement and agree that they are fair and equitable.  However, in light of the possibility of
differing interpretations of law and changes of circumstances, the parties
agree that in the event that any section, paragraph or term of this Agreement
shall be determined to be invalid or unenforceable by any competent authority
or tribunal for any reason, the remainder of this Agreement shall be unaffected
thereby and shall remain in full force and effect.  Moreover, if any of the provisions of this
Agreement is determined by a court of competent jurisdiction to be excessively
broad as to duration, activity, geographic application or subject, it shall be
construed by limiting or reducing it to the extent legally permitted so as to
be enforceable to the extent compatible with then applicable law.

11.  SUCCESSORS AND ASSIGNS.  This
Agreement shall bind and inure to the benefit of the successors and assigns of
the Company and the heirs, executors or personal representatives of
Executive.  This Agreement may not be
assigned by Executive.  This Agreement
may be assigned to any successor in interest to the Company (including by way
of merger, consolidation or reorganization, or by way of any assignment of all
or substantially all of the Company’s assets, business or properties), and
Executive hereby consents to such assignment.

12.  ENTIRE AGREEMENT; AMENDMENTS.  This
Agreement, including the recitals (which are a part hereof), together with the
applicable bylaws and policies of the Company, constitutes the entire Agreement
between the parties hereto and there are no other understandings, agreements or
representations, expressed or implied  This
Agreement supersedes any and all prior or contemporaneous agreements, oral or
written, concerning Executive’s employment and compensation, except for any
invention assignment and confidentiality terms of any agreement signed by
Executive, provided that the provisions of this Agreement relating to
acceleration and time to exercise vested Stock Options in the event of a Change
of Control are in addition to, not in lieu of, any such similar provisions set
forth in any Equity Incentive Plan or other document, and further provided that
any terms set forth in any employment offer letter executed by Executive and
the Company relating to the Company’s payment of relocation expenses, and
Executive’s obligations to repay such expenses, shall survive execution of this
Agreement, solely as and to the extent set forth in such offer letter, and
solely in accordance with its terms. 
This

 10
 

 

Agreement may be amended only in writing signed by Executive and the
Chief Executive Officer or Vice President, Human Resources of the Company.

13. TERMINATION; SURVIVAL.  The Company may terminate
this Agreement upon written notice delivered to Executive.  Such notice may be delivered to Executive at
any time commencing twelve months after the Effective Date, which termination
shall be effective twenty-four months after delivery of such notice to
Executive.  Sections 5 (five) through 14
(fourteen), inclusive shall survive the termination of this Agreement.  The obligations of Section 4 (four) shall
survive only with regards to termination of employment occurring prior to the
effective date of termination of this Agreement or with regards to a Change of
Control occurring prior to the effective date of termination of this
Agreement.  In all other respects the
parties’ obligations set forth in Section 4 (four), above, shall terminate upon
termination of this Agreement.

14. GOVERNING
LAW.  This
Agreement shall be governed by and construed in accordance with the laws (other
than conflicts of laws principles) of the State of California applicable to
contracts executed in and to be performed entirely within such State by
residents of such state.

Dated as of                         .

	
  

  	
   

  	
  ACCELRYS, INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Mark Emkjer

  
	
   

  	
   

  	
   

  	
  President and Chief Executive Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  EXECUTIVE

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
						

 

 11

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