Document:

EX-10.2

 EXHIBIT 10.2 
 EMPLOYMENT AGREEMENT 
 THIS EMPLOYMENT AGREEMENT
(“Agreement”), made and entered into this 1st
day of December, 2010, by and between Diversey, Inc., a Delaware corporation (“Diversey”) and Yagmur Sagnak (“Employee”). 
 Diversey wishes to continue to employ the Employee subject to the terms and conditions set forth below. 
 In consideration of the mutual promises and agreements set forth below, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows: 

ARTICLE I 

Employment 

1.1 Conditions of Employment. Diversey’s offer of employment to Employee is contingent upon satisfaction of the following
conditions: (1) Employee’s successful completion of a drug screening test and background check, and (2) Employee’s execution of the Confidentiality Agreement, Non-Competition Agreement, and Trade Secret, Invention, and Copyright
Agreement attached hereto as Exhibit A. Employee’s failure to satisfy each of the foregoing conditions shall be grounds for termination for Cause (as defined in Section 3.2 hereof). 

1.2 Position and Responsibilities. During the Term (as defined in Section 1.3 hereof) and subject to the terms and conditions
of this Agreement, Diversey agrees to employ Employee, and Employee agrees to serve as President, APAT of Diversey. In such capacity Employee will report to the President and Chief Executive Officer (“President and CEO”) of Diversey, and
be responsible for the typical management responsibilities expected of an individual holding such a position and such other duties and responsibilities consistent with such position as may be assigned to the Employee from time to time by the
President and CEO. 
 1.3 Term. Diversey agrees to continue to employ the Employee, and the Employee hereby agrees to
work in the employ of Diversey, subject to the terms and conditions of this Agreement, for the two year period commencing on the date hereof (the “Effective Date”) and ending on November 30, 2012 (the “Initial Term”), unless
earlier terminated pursuant to Article III. The Initial Term shall be extended automatically by annual one-year periods commencing on the second anniversary date of the Initial Term (each a “Renewal Term”) unless either Diversey or the
Employee gives written notice at least sixty (60) days prior to the end of the Initial Term or any Renewal Term of intent not to extend the Agreement. All terms and conditions of this Agreement shall remain in effect during one or more Renewal
Terms. The Initial Term together with any Renewal Term(s) shall be referred to herein as the “Term.” 
 1.4 Place
of Employment. Employee’s principal place of employment shall be Singapore. 

 1.5 Duties. During the Term, the Employee shall devote all of Employee’s
business time, attention and skill to the business and affairs of Diversey and its subsidiaries, except, so long as such activities do not unreasonably interfere with the business of Diversey or diminish the Employee’s obligations under the
Agreement, that Employee may (i) participate in the affairs of any governmental, educational or other charitable institution, or engage in professional speaking and writing activities, or (ii) serve as a member of the board of directors of
other corporations, and in either case, the Employee shall be entitled to retain all fees, royalties and other compensation derived from such activities in addition to the compensation and other benefits payable to Employee under this Agreement; and
provided further, that the Employee may invest personal or family funds in any form or manner Employee may choose that will not require any material services on Employee’s part in the operation of or the affairs of the entities in which such
investments are made. The Employee will perform faithfully the duties consistent with Employee’s position and which may be assigned to Employee from time to time by the President and CEO. 

1.6 Fiduciary Duty. Employee acknowledges that during the Term, Employee has a fiduciary duty of loyalty, fidelity and allegiance
to Diversey and Employee will not engage in any activity that will create a conflict of interest or breach of Diversey’s Code of Ethics and Business Conduct as in effect from time to time. 

ARTICLE II 

Compensation and Benefits 
 2.1 Base Salary. Employee shall receive a base salary (“Base Salary”) at the annualized rate of TRY 691,179.00 to be paid in accordance with the regular payroll practices of Diversey.
Base Salary will be reviewed on an annual basis in April of each year. The Base Salary amount, as in effect from time to time, may not be decreased. 
 2.2 Annual Incentive Bonus. Employee shall be eligible to participate in Diversey’s annual incentive bonus program, as in effect from time to time during the Term. Employee’s bonus target
is 50% of Base Salary on the last day of Diversey’s fiscal year. The bonus may range from 0% to 200% of bonus target based upon the performance of Diversey and the personal performance of Employee versus objectives. 

2.3 Long Term Incentives. Employee shall continue to participate in the JohnsonDiversey Holdings, Inc. Stock Incentive Plan
(“Plan”), as in effect from time to time during the Term. The Company will grant Employee 56,250 matching Options, which reflects an incremental .75 Options per Share for Shares purchased prior to the Effective Date. The Options hereby
granted shall have an exercise price equal to the Fair Market Value on the Grant Date and will vest in accordance with the Plan. Capitalized terms not otherwise defined in this section shall have the meanings ascribed to them in the Plan.

 2.4 Flexible Spending Account. During the Term, Employee shall be eligible for an annual Flexible Spending Account of
$10,000 to be utilized for financial planning, tax advice/preparation, estate planning, legal fees associated with estate and/or property matters, annual country club dues and health club memberships. The foregoing is in addition to Employee’s
automobile allowance per the policy of Diversey Singapore Pte. Ltd (“Diversey Singapore”). 

  
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 2.5 Employee Benefit Plans/Fringe Benefits/Vacation. During the Term, and except as
otherwise provided herein, Employee shall be eligible to participate in the applicable employee benefit and other plans, practices, policies and programs and fringe benefits of Diversey Singapore, Employee shall be entitled to vacation in accordance
with Diversey Singapore’s applicable vacation policy. It is expressly agreed and understood that Employee shall not be eligible to participate in any severance plan, program or policy maintained by Diversey or Diversey Singapore. 

In addition, if during the Term, Diversey adopts a change-in-control plan or such agreements for Level I executives of Diversey other
than the President and CEO, Employee shall be included generally on the same terms and conditions as the other Level I executives of Diversey other than the President and CEO. 
 2.6 Expenses. Employee shall be entitled to prompt reimbursement of all reasonable business expenses incurred in the performance of Employee’s duties pursuant to this Agreement, to the extent
such expenses are reimbursable in accordance with Diversey Singapore’s applicable expense reimbursement policy. 
 2.7
Relocation. If applicable, Employee shall be reimbursed for travel, moving, relocation, temporary living and buy/sale expenses in accordance with Diversey’s applicable relocation policy. 

ARTICLE III 

Termination 
 3.1 Voluntary Resignation or Termination Without Cause. Diversey may terminate Employee’s employment at any time without “Cause” (as defined in Section 3.2 hereof) upon thirty
(30) days’ prior written notice to Employee. During such thirty (30) day notice period, Diversey may require that Employee cease performing some or all of Employee’s duties and/or not be present at Diversey’s offices and/or
other facilities. Employee may voluntarily resign other than for “Good Reason” (as defined in Section 3.3(c) hereof) at any time upon sixty (60) days’ prior written notice to Diversey; provided, however, Diversey may, in its
sole discretion, (a) advance the date of termination to any date following Diversey’s receipt of such written notice and/or (b) during such sixty (60) day notice period, Diversey may require that Employee cease performing some or
all of Employee’s duties and/or not be present at Diversey’s offices and/or facilities. 
 3.2 Termination for
Cause. Diversey may terminate Employee’s employment at any time without notice if such termination is for “Cause” (as defined herein). “Cause” means termination for any of the following reasons: 

(a) Material breach of this Agreement, including a material failure to perform within the provisions of “The Diversey
Way” after having received prior written notice of such material breach and Employee has not corrected such material breach (if capable of correction) to the reasonable satisfaction of the President and CEO within the thirty (30) day
period following receipt by Employee of such written notice. 

  
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 (b) Willful misconduct, or willful violation of the law in the performance
of duties under this Agreement. 
 (c) Willful failure or refusal to follow reasonable, explicit, and lawful
instructions or directions from the President and CEO concerning the operation of Diversey’s business. 

(d) Conviction of a felony. 
 (e) Theft or misappropriation of funds or property of Diversey, or commission of any material act of dishonesty involving Diversey, its employees, or business. 

(f) Appropriating any corporate opportunity of Diversey, unless the transaction was approved in writing by the President
and CEO following full disclosure of all pertinent details of the transaction. 
 (g) Breach of fiduciary duty
owed to Diversey as an executive of Diversey. 
 (h) Material breach of any duty or obligation under the attached
Confidentiality Agreement, Non-Competition Agreement, and/or Trade Secret, Invention, and Copyright Agreement, after having received prior written notice of such material breach and Employee has not corrected such material breach (if capable of
correction) to the reasonable satisfaction of the President and CEO within the thirty (30) day period following receipt by Employee of such written notice. 
 For purposes of this Section 3.2, no act or failure to act on the part of the Employee shall be considered “willful” unless it is done, or omitted to be done, by the Employee in bad faith
or without reasonable belief that the Employee’s action or omission was in the best interest of Diversey. 
 3.3
Resignation for Good Reason, Retirement, Death, Disability or Termination without Cause. 
 (a) Employee’s employment
shall terminate automatically and immediately upon Employee’s retirement or death. 
 (b) Upon the President and CEO’s
written determination that Employee is unable, due to a disability, to continue carrying out the duties and responsibilities of Employee’s position, Employee’s officer status will be terminated, and Employee’s employment will continue
pursuant to Diversey’s applicable policies and benefits related to disabled employees. For purposes of this Agreement, “disability” means the inability of the Employee, due to a physical or mental impairment, for 120 consecutive days
to perform the essential duties and functions contemplated by this Agreement with or without reasonable accommodation. A determination of disability shall be made by an independent physician selected by the President and CEO who is deemed
satisfactory to the Employee, and Employee shall cooperate with the 

  
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efforts to make such determination. Notice of determination of disability shall be provided by the President and CEO in writing to Employee stating the facts and reasons for such determination.
Any such determination shall be conclusive and binding on the parties. Nothing in this Section, however, shall be deemed to alter Diversey’s duty to reasonably accommodate, if possible, any disability of Employee. Any determination of
disability under this Section in not intended to affect any benefits which Employee may be entitled under any long term disability insurance policy provided by Diversey or Employee with respect to Employee, which benefits shall be governed solely by
the terms of any such insurance policy. 
 (c) Employee may resign at any time for “Good Reason”
(as defined herein) without the need for sixty (60) days’ written notice to Diversey. “Good Reason” shall be defined as any of the following events that have not been cured within the thirty (30) day period following the
President and CEO’ s receipt of written notice of such event by Employee: (1) a material diminution in the requirements of Employee’s employment, or (2) any material breach of the Agreement by Diversey. Good Reason shall cease to
exist for an event on the 90th day following the later of
the occurrence of the event or Employee’s actual knowledge thereof, unless Employee has given notice of such event on or before such 90th day; provided further that any such event shall constitute Good Reason only if Diversey fails to cure such event
within thirty (30) days after receipt from Employee of written notice of the event which constitutes Good Reason and Employee actually terminates employment for such uncured Good Reason event within sixty (60) days following the expiration
of such thirty (30) day cure period. 
 3.4 Payments upon Termination. 

(a) If Employee should resign other than for Good Reason or if Diversey should terminate Employee for Cause, Employee shall not be
entitled to any compensation or remuneration other than such Base Salary and benefits through the effective date of termination and amounts and benefits as Employee is eligible to receive under Diversey’s then prevailing policies and benefit
plans and as prescribed by law, Employee’s accrued but unused vacation and incurred but unreimbursed business expenses. 

(b) If Employee’s employment is terminated as a result of death, or disability, Employee or Employee’s estate, as applicable,
shall, in addition to any other compensation and benefits provided by Diversey policies and benefit plans then in effect, receive a bonus prorated at target level for the fiscal year in which the termination occurs, Employee’s accrued but
unused vacation, incurred but unreimbursed business expenses, and Employee’s accrued but unpaid performance bonus for the fiscal year prior to the fiscal year during which such death or disability occurs. For all purposes of this Agreement, any
bonus proration shall be determined on the basis of the number of days the Employee is employed in the fiscal year during which termination of employment occurs. 
 (c) If Employee’s employment is terminated as a result of termination without Cause or if Employee resigns for Good Reason, and so long as Employee does not materially breach any provisions of the
Confidentiality Agreement, Non-Competition Agreement, Trade Secret, Invention, and Copyright Agreement or Code of Ethics and Business Conduct, respectively, in exchange for providing Diversey with a legally enforceable Waiver and Release
Agreement in a form reasonably satisfactory to Diversey, Employee (or, in the event of his death, his estate) will 

  
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receive (1) continuation of Employee’s Base Salary for two (2) years; (2) a bonus prorated at target level for the period employed during the year in which the termination
occurs; (3) a bonus at the target level for the two (2) year Base Salary continuation period; and (4) a senior executive level outplacement program by an outplacement firm selected by Employee and paid for by Diversey up to $30,000,
provided that such payment shall be completed not later than the 15th day of the third month following the end of the fiscal year during which the date of termination of employment occurs. Payment of Base Salary and target bonus will be paid in
equal installments over the two (2) year salary continuation period. Moreover, Employee shall be paid Employee’s accrued but unused vacation, incurred but unreimbursed business expenses, and Employee’s accrued but unpaid performance
bonus for the fiscal year prior to the fiscal year during which such termination without Cause or resignation for Good Reason occurs. 
 (d) In addition, if Employee resigns for Good Reason or is terminated without Cause, prior to Employee’s five (5) year anniversary with Diversey, Diversey will relocate Employee back to the
State or country, as applicable, from which Employee was originally relocated by Diversey according to the terms of Diversey’s relocation policy, such terms to be no less favorable than those in effect on the date of Employee’s offer of
employment. 
 (e) If, on such date that Employee resigns for Good Reason or is terminated without Cause, Employee is covered by
a Diversey change-in-control plan or agreement, Employee shall receive the greater of, but not both, the payments and benefits provided under (i) the Diversey change-in-control plan or agreement or (ii) Sections 3.4(c) and (d) of this
Agreement. 
 (f) If this Agreement is not renewed by Diversey beyond the Initial Term or any Renewal Term, then upon such
expiration of the Agreement Employee shall be deemed to have been terminated by Diversey other than for Cause. 
 (g) Employee
shall not be required to mitigate the amount of any payment provided for in this Article III by seeking other employment or otherwise. 
 ARTICLE IV 
 Miscellaneous 

4.1 Entire Agreement. This Agreement and the attached Confidentiality Agreement, Non-Competition Agreement, and Trade Secret,
Invention, and Copyright Agreement incorporated herein under Section 4.9 hereof, and any Diversey Expatriate Assignment Letter entered into between Diversey and Employee sets forth the entire agreement between the parties relating to the
subject matter hereof and supersede all prior agreements between the parties relating to the subject matter hereof. 
 4.2
Waiver of Breach. The waiver by a party of the breach of any provision of this Agreement shall not be deemed a waiver by said party of any other or subsequent breach. 

4.3 Assignment. This Agreement shall not be assignable by Diversey without the written consent of Employee; provided, however,
that if Diversey shall merge or consolidate with or into, transfer substantially all of its assets, including goodwill, to another corporation or other form of business organization, this Agreement shall be binding upon and shall inure to the
benefit of the successor corporation in such merger, consolidation or transfer. Employee may not assign, pledge or encumber any interest in this Agreement or any part thereof without the written consent of the President and CEO of Diversey.

  
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 4.4 Disputes. Any dispute or controversy arising from or relating to this Agreement,
other than equitable enforcement of the documents incorporated herein under Section 4.9, shall be submitted to and decided by binding arbitration in the State of Wisconsin, USA. At the request of either Diversey or Employee, arbitration
proceedings will be conducted in the utmost secrecy; in such case, all documents, testimony and records shall be received, heard and maintained by the arbitrator in secrecy, available for inspection only by Diversey or by the Employee and by their
respective attorneys and experts who shall agree, in advance and in writing, to receive all such information in confidence and to maintain such information in secrecy until such information shall be generally known or until such time as said
information is to be filed in court to confirm or object to the arbitration award at which time the parties hereto will cooperate to maintain such secrecy if possible consistent with the result of the court. The parties shall share all expenses of
arbitration equally unless the arbitrator shall direct otherwise as part of the award. The arbitration will be conducted by a single arbitrator who is licensed to practice law in a State in the United States under the American Arbitration
Association’s National Rules For The Resolution Of Employment Disputes. The arbitrator shall have the discretionary authority to award reasonable attorney’s and arbitration fees, costs and expenses to the prevailing party. 

4.5 Limitations on Claims. Any claim or controversy otherwise arbitrable hereunder shall be deemed waived, and no such claim or
controversy shall be made or raised, unless a request for arbitration thereof has been given as provided below to the other party in writing not later than six (6) months after the date on which the facts giving rise to the claim or controversy
first arose. 
 4.6 Notices. All notices, requests, demands or other communications required or permitted under this
Agreement shall be in writing and shall be deemed to have been duly given to any party when delivered personally (by courier service or otherwise), when delivered by telecopy or facsimile, by overnight courier, or seven days after being mailed by
first-class mail, postage prepaid and return receipt requested in each case to the applicable addresses set forth below: 
  

					
	If to Employee:	  	Yagmur Sagnak	  	
		  	  
	  	
		  	  
	  	
		  	  
	  	
			
	If to Diversey:	  	Senior Vice President, Global	  	
		  	Human Resources	  	
		  	Diversey, Inc.	  	
		  	8310 16th Street	  	
		  	P.O. Box 902	  	
		  	Sturtevant, WI 53177-0902	  	

  
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 or to such other address as such party shall have designated by written notice so given to each other party.

 4.7 Amendment. This Agreement may be modified only in writing, signed by both of the parties. Headings included in
this Agreement are for convenience only and are not intended to limit or expand the rights of the parties hereto. 
 4.8
Severability. If any provision of this Agreement is determined to be invalid or unenforceable, then such invalidity or unenforceability shall have no effect on the other provisions hereof, which shall remain valid, binding and enforceable and in
full force and effect, and such invalid or unenforceable provisions, shall be construed in a manner so as to give the maximum valid and enforceable effect to the intent of the parties expressed therein. 

4.9 Incorporation of Terms. The introductory language and recitals set forth above, and the attached Confidentiality Agreement,
Non-Competition Agreement, and Trade Secret, Invention, and Copyright Agreement are incorporated by reference independent of this Agreement. 
 4.10 Governing Law. This Agreement shall be governed by and construed in accordance with the internal laws of the State of Wisconsin, USA (regardless of such State’s conflicts of law
principles). 
 4.11 Indemnification. During the Term and thereafter, Employee will be covered under Diversey’s
indemnification bylaw provisions and Diversey maintained directors and officers liability insurance coverage as in effect (in each case) from time to time. 

  
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 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day, month and
year first above written. 
  

			
	DIVERSEY, INC.
		
	By	 	/s/ Edward F. Lonergan
		 	  
 Edward F.
Lonergan

		 	President and Chief Executive Officer
	
	EMPLOYEE
	
	 /s/ Yagmur Sagnak

	Yagmur Sagnak

  

	
	  

	Witness

  
 9EX-10.2

 Exhibit 10.2 
 SEPARATION AGREEMENT AND RELEASE 
 This Separation Agreement and
Release (this “Agreement”) is made by and between Jeffrey P. Brennan (“Brennan”) and Targacept, Inc. (“Targacept” or the “Company”), including all Targacept predecessor entities and
all affiliated entities, and provides as follows. 
 RECITALS 

A. Brennan is currently employed by Targacept pursuant to an Employment Agreement dated September 1, 2003, as amended by Amendment
No. 1 to Employment Agreement dated December 3, 2007 and Amendment No. 2 to Employment Agreement dated March 13, 2008 (the “Employment Agreement”), and such employment will terminate as provided herein.

 B. The parties wish to separate on amicable terms, Brennan wishes to cooperate with Targacept in the transition following
Brennan’s separation, and Targacept wishes to provide Brennan with certain benefits in connection with his separation. 

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Targacept and Brennan
hereby covenant and agree as follows: 
 AGREEMENT 

1. TERMINATION OF EMPLOYMENT. Brennan’s employment with the Company will
terminate on March 31, 2013 (the “Termination Date”). Brennan understands and agrees that the relationship created by this Agreement is purely contractual and that no employment relationship is intended, or should be inferred,
from the performance of the Company’s obligations under this Agreement. 
 2. EFFECTIVENESS
OF AGREEMENT. This Agreement shall become effective on the eighth (8th) day after the date of signature of the later of Brennan or Targacept to sign below (the “Effective
Date”), but only if: (a) Brennan returns a signed original of this Agreement as provided in Section 11 and (b) Brennan has not exercised the ADEA Revocation Right as defined in and as provided in Section 12. For clarity,
if Brennan exercises the ADEA Revocation Right, (i) this Agreement shall be null and void and of no force or effect and (ii) Brennan’s employment will in any case terminate on the Termination Date. 

3. SEVERANCE PAY AND BENEFITS. In consideration and exchange
for Brennan’s promises in this Agreement (including, without limitation, the release and waiver set forth in Section 5 and the promises set forth in Sections 6 and 7), subject to Section 14, the Company will provide Brennan with
(a) the pay and benefits set forth in Section 7(d) of the Employment Agreement (the period during which Brennan receives severance pay as set forth in Section 7(d)(A) of the Employment Agreement, the “Severance
Period”), (b) the amount set forth in Section 1 of the Retention Award Agreement between Brennan and Targacept dated January 17, 2013 (the “RAA”), subject if applicable to Section 7 of the RAA, and
(c) solely to the extent expressly set forth on Exhibit A attached hereto, an extension to the period Mr. Brennan may exercise the portion of certain outstanding stock options vested and unexercised as of the Termination Date. All
payments under this Section 3 shall be subject to all statutory and other required deductions and withholdings, if any. Brennan agrees that he shall be responsible for his own tax liabilities arising out of the payments and benefits provided to
him under this Section 3 (and, for clarity, Section 7(d) of the Employment 

 
Agreement), and he agrees to indemnify and hold the Company harmless from any liabilities arising from the payments and benefits made pursuant to this Section 3. In addition, Brennan
acknowledges and agrees that: (i) the benefits set forth in Section 7(d)(C) of the Employment Agreement shall (A) require him to elect within sixty (60) days after his receipt of an election notice from the Company’s health
care plan administrator continuation of the healthcare coverage provided to him as of the Termination Date under the Consolidated Omnibus Budget Reconciliation Act of 1985 (commonly referred to as “COBRA”) and (B) be limited to
the Company paying the costs for such continuation of coverage, less the costs being paid by Brennan for such coverage as of the Termination Date (which shall continue to be his sole responsibility), during the Severance Period; and (ii) any
and all costs to continue such healthcare coverage after the end of the Severance Period, whether for any further period provided by COBRA or otherwise, shall be the sole responsibility of Brennan. 

4. NO PRIOR OBLIGATION. Brennan acknowledges and agrees that:
(a) the payments and benefits that Brennan receives or for which Brennan is eligible under this Agreement are of value to Brennan; (b) in the absence of the general release and promises made by Brennan hereunder, the Company had no prior
legal obligation to provide the payments and benefits called for by Section 3; and (c) Brennan would not be entitled to such payments and benefits if not for this Agreement. 

5. GENERAL RELEASE AND WAIVER OF CLAIMS
BY BRENNAN. Brennan, for himself and for his heirs, successors, assigns, or anyone else claiming under or through Brennan, hereby forever discharges and releases Targacept, its
predecessor, affiliated or subsidiary entities, and its and their respective directors, officers, stockholders, affiliates, employees, attorneys, agents, representatives, and assigns (all of the foregoing, collectively, the
“Releasees”), and each of them, from any and all claims, liabilities, actions or causes of action of any kind or character whatsoever, whether at law or in equity, whether known or unknown, whether contingent or absolute. This
general release and waiver of claims includes, without limitation, claims for personal injuries, back pay, losses or damage to real or personal property, economic loss or damage of any kind, breach of contract (express or implied), defamation,
breach of any covenant of good faith (express or implied), tortious interference with contract, wrongful termination, business or personal tort, misrepresentation, or any other losses or expenses of any kind (whether arising in tort, contract or by
statute) arising out of Brennan’s employment relationship with Targacept and any other alleged acts or omissions by the Releasees not expressly excluded herein. Brennan acknowledges that this general release and waiver of claims applies both to
known and unknown claims that may exist between Brennan and any of the Releasees as of the date Brennan signs this Agreement. 

Brennan expressly acknowledges and agrees that this release and waiver of claims includes but is not limited to a release of any and all
rights, claims, or causes of action arising under any employment, stock option or other agreement (whether written, oral or implied) or under any state or federal constitution, statute, law, rule, regulation, or common-law principle of tort,
contract or equity, except for the obligations of Targacept under this Agreement. This waiver of claims specifically includes but is not limited to any action under the Age Discrimination in Employment Act of 1967, 29 U.S.C. § 621, et
seq., Title VII of the Civil Rights Act of 1964, as amended, 42 U.S.C. § 2000e, et seq., the Americans with Disabilities Act of 1990, 42 U.S.C. § 12101, et seq., the Family and Medical Leave
Act, 42 U.S.C. § 2601, et seq., any common law or statutory claim of wrongful discharge, the Employment Retirement Income Security Act of 1976, as amended, and any claims for any entitlement to severance, vacation pay, accrued paid
leave, commissions, reimbursements or attorney’s fees pursuant to any contract or state or federal law. 

  
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 By entering into this Agreement, Brennan understands and agrees that Brennan does not waive
any rights or claims that he might have that arise as a result of any conduct that occurs after the date Brennan signs this Agreement or any claims for continuation rights under COBRA. 

Brennan acknowledges and agrees that: (a) any and all monies due and owing to Brennan from Targacept (including, without limitation,
any and all compensation, wages, commissions, benefits, expense reimbursements, vacation/leave time, and other payments or amounts), have heretofore been unconditionally and timely paid to Brennan and that Targacept has satisfied each and every
obligation owing to Brennan, except for: (i) Brennan’s regular base salary through the Termination Date, which shall be paid by Targacept in arrears in accordance with its customary payroll practices; (ii) Brennan’s 27 floating
holiday and vacation days for 2013, to the extent unused as of the Termination Date, which shall be paid by Targacept in accordance with its customary practices; and (iii) the amounts to be paid to Brennan by Targacept pursuant to this
Agreement; and (b) there are no stock options, stock grants, equity compensation, bonus commitments, retention incentives or incentive compensation of any kind or nature whatsoever which are due and owing to Brennan (including, without
limitation, with respect to Targacept’s annual cash incentive award program, commonly referred to within Targacept as its bonus program, with respect to 2013 or any other year), and no such payment or entitlement will accrue or become due and
owing after the Termination Date. 
 6. AGREEMENT TO
COOPERATE. In addition to, and not in lieu of, his other obligations hereunder, Brennan agrees to cooperate with Targacept in all reasonable respects during the Severance Period in transitioning
his responsibilities and duties at Targacept to such other officers or employees of Targacept as Targacept may direct. Brennan further agrees to cooperate in all reasonable respects (including, without limitation, by meeting with Targacept’s
counsel and by providing sworn testimony in affidavits, depositions or trials) in assisting in the prosecution or defense of any claims, demands, complaints, or lawsuits filed by or against, or threatened against, any of the Releasees that involve
facts or decisions in which or about which he had, or is alleged to have had, input or knowledge for so long as Targacept may require; provided that Targacept will reimburse Brennan for any out-of-pocket expenses that are both approved by Targacept
prior to incurrence by Brennan and actually and reasonably incurred by Brennan in the performance of this sentence. 
 7.
NON-DISPARAGEMENT. Brennan agrees that he will refrain from any interference with Targacept’s business opportunities and from any and all remarks or conduct that are inconsistent with the non-adversarial
spirit of this Agreement, including, without limitation, refraining from comments, oral or written, that disparage, defame, libel, slander, or otherwise damage Targacept, its business, its scientific areas of interest (e.g., neuronal nicotinic
receptors) or any of its product candidates, or any of the Releasees. 
 8. FULL
CAPACITY. Brennan attests that he possesses sufficient education and experience to understand fully the extent and impact of the provisions of this Agreement. Brennan affirms that he is fully competent to execute this
Agreement and that he does so voluntarily and without any coercion, undue influence, threat or intimidation of any kind or type. Brennan represents that he has not assigned or transferred any of the claims hereby released. 

9. DISPUTED CLAIMS. It is agreed by both parties that this Agreement shall not in any way be
construed, directly or indirectly, as an admission by Targacept that it has acted wrongfully with respect to Brennan or any other person, or that Brennan has any rights whatsoever against 

  
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Targacept other than as and to the extent expressly herein stated. Targacept expressly disclaims and denies any liability to or wrongful acts against Brennan or any other person, on the part of
Targacept or any agents, directors, officers, attorneys, employees, or representatives of Targacept. 
 10.
ADVICE TO SEEK COUNSEL. Brennan acknowledges and agrees that he has been encouraged by Targacept to consult with counsel of his choosing prior to executing this Agreement.

 11. CONSIDERATION AND REVIEW PERIOD. Brennan agrees
that Brennan has been provided twenty-one (21) days in which to consider and review this Agreement and to obtain any legal advice Brennan deems appropriate from the attorney of Brennan’s choice. Brennan can accept this Agreement only by
signing and returning a signed original of the Agreement to Karen A. Hicks, Vice President, Human Resources (“Hicks”), at Targacept, Inc., 100 North Main Street, Suite 1510, Winston-Salem, NC 27101. Brennan understands and agrees
that this Agreement shall not become effective or enforceable until it has been signed by both parties and a fully executed original has been received by the Company. 
 12. REVOCATION PERIOD. After returning a signed original of this Agreement to the Company, Brennan may revoke his agreement in Section 5 to waive claims
arising under the Age Discrimination in Employment Act of 1967 (the “ADEA”) by providing written notice to Targacept within seven (7) days after the date of signature of the later of Brennan or Targacept to sign below (the
“ADEA Revocation Right”). The ADEA Revocation Right will be validly exercised by Brennan only if such written notice is timely received by Hicks at Targacept, Inc., 100 North Main Street, Suite 1510, Winston-Salem, NC 27101. Brennan
acknowledges and agrees that, unless he shall have validly exercised the ADEA Revocation Right, upon expiration of the above-described revocation period, he shall have forever waived and released the Releasees from any and all claims as of the
Effective Date, including claims under the ADEA. 
 13. RETURN OF
PROPERTY. Brennan represents that he has: (a) returned to Targacept all property (including, for clarity but without limitation, Proprietary Information, as that term is defined in Section 5(b) of the Employment
Agreement) belonging to Targacept, including, without limitation, all keys, badges, virtual private network (vpn) fobs, phones or other handheld devices, tablets, computers, equipment, software, documents, handbooks, manuals, files and other
materials and information obtained or furnished to, or prepared in whole or in part by, Brennan in connection with his employment with the Company; and (b) provided to Hicks all user names, passwords, access codes and the like in his possession
or control, or of which he is aware, related to Targacept or any Targacept database or other property or system. 
 14.
PERFORMANCE. Targacept will make the payments and provide the benefits set forth in clause (a) of Section 3 provided Brennan complies with and meets his obligations under this Agreement and
Section 5 (excluding Section 5(e)) of the Employment Agreement. In the event that Brennan breaches any of his covenants or promises, or causes any covenants or promises to be breached, in addition to any other rights or remedies available
to Targacept, at law or otherwise, Targacept’s obligation to perform under this Agreement shall automatically terminate and Targacept shall have no further liability or obligation to Brennan. Alternatively, Targacept may seek injunctive relief
to enforce the provisions of this Agreement. 
 15. ENTIRE AGREEMENT;
COMPLETE DEFENSE. The parties acknowledge and represent that, with the express exception of (a) Section 5 (but excluding Section 5(e)) of the Employment Agreement, (b) the RAA (but excluding
Section 1 thereof) and (c) the Proprietary Information, 

  
 4 

 
Inventions and Noncompetition Agreement dated August 19, 2003 between Brennan and Targacept (“Proprietary Information Agreement”), all of which survive the Termination Date
and remain in full force and effect, this Agreement contains the entire agreement between them regarding the matters set forth and that it supersedes all previous negotiations, discussions, communications and understandings regarding such matters.
The parties further acknowledge that no representations, inducements, promises or agreements, oral or written, have been made by either party or by anyone acting on behalf of either party that are not embodied in this Agreement. The terms of this
Agreement are contractual and not a mere recital and the parties agree that the contents of this Agreement may be used in evidence to demonstrate Brennan’s knowing and valid release of claims as stated herein. 

The parties agree that this Agreement (including, without limitation, the general release contained in Section 5) may be treated as
a complete defense to any legal, equitable or administrative action that may be brought, instituted or taken by Brennan, or on his behalf, against any of the Releasees and shall forever be a complete bar to the commencement or prosecution of any
claim, demand, lawsuit, charge or other legal proceeding of any kind against any of the Releasees relating to any or all of Targacept, Targacept’s business, Brennan’s employment with Targacept and the termination of Brennan’s
employment with Targacept. 
 16. BINDING AGREEMENT;
ASSIGNMENT. This Agreement shall be binding upon and inure to the benefit of Brennan, on the one hand, and to Targacept and its successors and permitted assigns, on the other hand. This Agreement and any rights
or obligations hereunder may be assigned by the Company to the successor of all or substantially all of its business or to an affiliate of the Company. Neither this Agreement nor any of the rights and obligations of Brennan hereunder may be assigned
or delegated by Brennan without the Company’s prior written consent. 
 17. AMENDMENT
AND WAIVER. This Agreement may not be modified or amended except in a writing signed by Brennan and an authorized representative of the Company. The failure of either party to assert a right
hereunder or to insist upon compliance with any term or condition hereof will not constitute a waiver of that right or excuse a similar subsequent failure to perform any such term or condition by the other party. 

18. NO THIRD PARTY BENEFICIARIES. This Agreement
is for the sole benefit of Brennan, on the one hand, and the Company and its permitted successors and assigns, on the other hand, and shall not be construed as conferring any rights on any other party. 

19. APPLICABLE LAW AND FORUM. North Carolina law shall govern
the interpretation and enforcement of this Agreement, without regard to its conflicts of laws provisions. Brennan agrees that the exclusive and convenient forum for any civil lawsuit relating to this Agreement shall be any proper state court within
Forsyth County in the State of North Carolina or, if jurisdiction exists, the United States District Court for the Middle District of North Carolina. 
 20. PARTIAL INVALIDITY. The parties agree that the provisions of this Agreement shall be deemed severable and that the invalidity or unenforceability of any
portion or any provision shall not affect the validity or enforceability of the other portions or provisions. Such provisions shall be appropriately limited and given effect to the extent that they may be enforceable. 

  
 5 

 IN WITNESS WHEREOF, the parties have set their hands and seals on this Agreement:

  

							
	 /s/ Jeffrey P. Brennan
	 		 	Date: March 29, 2013
	Jeffrey P. Brennan	 		 	
	
	TARGACEPT, INC.
				
	By:	 	 /s/ Stephen A. Hill
	 		 	Date: March 29, 2013
		 	Stephen A. Hill	 		 	
		 	President and Chief Executive Officer	 		 	

  
 6 

 Exhibit A 
 March 29, 2013 
 Dear Jeff: 

We refer you to the Amended and Restated 2000 Equity Incentive Plan of Targacept, Inc. (the “2000 Plan”) and the
Targacept, Inc. 2006 Stock Incentive Plan, as amended and restated through March 9, 2011 and further amended effective December 7, 2012 and March 13, 2013 (the “2006 Plan” and, together with the 2000 Plan, the
“Plans”). Capitalized terms used in this letter and not otherwise defined have the respective meanings given to them in the applicable Plan. 
 As of the date of this letter, you hold certain outstanding, unexercised options to purchase shares of Targacept common stock that were granted to you under either or both of the 2000 Plan and the 2006
Plan (“Targacept Options”). Each of your Targacept Options is evidenced by a stock option agreement between you and Targacept (an “Option Agreement”) and is subject in all respects to the terms of the Plan under
which such Targacept Option was granted. 
 Under the terms of the applicable Option Agreement and Plan, each Targacept Option
will expire (and no longer be exercisable) prior to the end of its 10-year option period if any one of several events related to your termination of employment occurs. We refer you to: (a) Section 5(c) of each Option Agreement for
Targacept Options granted under the 2006 Plan; and (b) Section 4 of each Option Agreement for Targacept Options granted under the 2000 Plan and Section 6(c)(iii)(D) of the 2000 Plan. Your employment with Targacept is terminating with
an effective date of March 31, 2013, which is your “termination date” for purposes of your Targacept Options.” Accordingly, prior to giving effect to this letter and assuming your termination date is March 31,
2013, the portion of each Targacept Option granted under (i) the 2000 Plan that is vested and unexercised as of your termination date must by its terms be exercised, if at all, prior to June 29, 2013 and (ii) the 2006 Plan that is
vested and unexercised as of your termination date must by its terms be exercised, if at all, prior to June 30, 2013. 

The Compensation Committee of Targacept’s Board of Directors, as Administrator of the Plans, has determined that the period during
which you can exercise the portion of each Targacept Option that is vested and unexercised as of your termination date is extended until the earlier of (a) the expiration date of such Targacept Option as set forth in the corresponding Option
Agreement or (b) September 30, 2014. Accordingly, each Targacept Option must be exercised, if at all, prior to the earlier of those two dates. Targacept assumes no obligation to advise you or remind of you of the pending expiration
date for any Targacept Option. 
 In addition, by the terms of your Employment Agreement with Targacept dated September 1,
2003, as amended on December 3, 2007 and March 13, 2008, and a related Separation Agreement and Release dated on or about the date of this letter, effective as of your termination date, the vesting of Targacept Options that you held as of
your termination date shall be accelerated to the extent not exercisable as of termination date, but, for each such Targacept Option, only to the extent such Targacept Option would have become exercisable by December 31, 2013 if you had
remained employed by Targacept through that date. No further vesting for any Targacept Option will occur after your termination date, and the unvested portion (if any) of each Targacept Option as of your termination date will not be or become
exercisable. 

 Except as expressly provided above, all terms of Targacept Options remain unchanged,
unaffected by the Compensation Committee action or this letter. 
 Please keep in mind that each Targacept Option, to the extent
designated as an incentive stock option, will cease to be an incentive stock option and automatically become a nonqualified stock option if it is exercised on or after June 29, 2013 (for Targacept Options granted under the 2000 Plan) or
June 30, 2013 (for Targacept Options granted under the 2006 Plan). We strongly encourage you to consult with your personal legal or tax advisor regarding the tax consequences of Targacept Options (including the impact of the actions described
in this letter), the exercise of any Targacept Option and the timing of any such exercise. 
 Please sign this letter where
indicated below and return it to Targacept as soon as possible. By signing: (1) you acknowledge receipt of this letter and agree to be bound by the terms of the respective Plans, the respective Option Agreements and this letter; (2) you,
for yourself and your heirs, successors, assigns and anyone else claiming under or through you, forever discharge and release Targacept, its predecessor, affiliated or subsidiary entities, if any, and its and their respective directors, officers,
stockholders, affiliates, employees, agents, representatives, and assigns, and each of them, from any and all claims, liabilities, actions or causes of action of any kind or character whatsoever, whether at law or in equity, whether known or
unknown, whether contingent or absolute, and any other losses or expenses of any kind (whether arising in tort, contract or by statute), arising out of or with respect to Targacept Options, any of the Option Agreements or either of the Plans
(collectively, “Released Claims”); and (3) acknowledge that the foregoing release applies both to known and unknown Released Claims that may exist as of date you sign this letter. 

 

	
	Sincerely,
	
	/s/ Stephen A. Hill
	
	Stephen A. Hill
	President and Chief Executive Officer

  

	
	Agreed to and accepted by:
	
	 /s/ Jeffrey P. Brennan

	Print Name: Jeffrey P. Brennan

 Date: March 29, 2013 
  

			
	cc:	  	Karen A. Hicks
		  	Mauri K. Hodges

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