Document:

Exhibit 10.1

 

	
  

  	
   

  
	
   

  	
  Leslie J. Browne, Ph.D.

  
	
   

  	
  President and Chief
  Executive Officer

  

 

May 4, 2006

 

Brian
M. Posner, CPA

 

Dear Brian:

 

I am delighted to outline
the terms and conditions of your promotion.

 

	
  Title:

  	
   

  	
  Executive Vice
  President, Chief Financial Officer and Treasurer

  
	
   

  	
   

  	
   

  
	
  Compensation:

  	
   

  	
  Your monthly base
  compensation will be $19,166.66 per month ($230,000 on an annualized basis),
  effective as of this date.

  
	
   

  	
   

  	
   

  
	
  Equity:

  	
   

  	
  You will be granted an
  option to purchase 75,000 shares of Pharmacopeia Drug Discovery, Inc. Common
  Stock at a per share purchase price equal to today’s closing price on the
  NASDAQ National Market. You will receive documentation of this in a separate
  agreement.

  
	
   

  	
   

  	
   

  
	
  Bonus:

  	
   

  	
  You will be eligible to
  receive a bonus in the amount of 35% of your base salary based upon the
  achievement of corporate and individual objectives.

  
	
   

  	
   

  	
   

  
	
  Severance Provisions:

  	
   

  	
  Will be provided in a
  separate agreement.

  

 

As an
Executive Vice President you will be a member of the Executive Management Team.

 

This will confirm that
you are already a participant in the Company’s Executive Life Insurance and
Disability programs and that you will continue to be eligible for 5 weeks
vacation.

 

Brian, I am looking
forward to continuing to work with you as you take on this important role for
the Company. Congratulations!

 

	
   

  	
  Sincerely,

  
	
   

  	
   

  
	
   

  	
  /s/ Leslie J. Browne

  	
   

  
	
   

  	
  Leslie J. Browne, Ph.D.

  
	
  SIGNED AND AGREED BY:

  	
  President and Chief
  Executive Officer

  
	
   

  	
   

  
	
  /s/
  Brian M. Posner

  	
   

  	
   

  
	
  Brian M. Posner

  	
   

  	
   

  
	
  May
  4, 2006

  	
   

  	
   

  
	
  DateExhibit 10.2

 

SEVERANCE
AGREEMENT FOR BRIAN M. POSNER

 

This SEVERANCE AGREEMENT
(the “Agreement”) is made and entered into as of the 4th day of May, 2006, by
and between PHARMACOPEIA DRUG DISCOVERY, INC.,
a Delaware corporation (hereinafter, the “Company”), and Brian M. Posner, an individual (hereinafter, “Employee”).

 

RECITALS

 

WHEREAS, the Company desires to
provide certain benefits and payments to Employee in the event of the
termination of his employment with the Company; and

 

WHEREAS, Employee desires to accept
such benefits and payments on the terms and subject to the conditions set forth
in this Agreement;

 

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

 

1. TERMINATION
AND EFFECT OF TERMINATION. Employee’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
Employee’s employment, the Company shall have no liability to Employee for
compensation or benefits except as specified in this Section 1 or as
required by the Company’s benefits policy.

 

(a)  Termination by the Company for Cause.
Employee’s employment
may be terminated by the Company for Cause at any time upon delivery of
written notice to Employee. Upon such a termination, the Company shall have no
obligation to Employee 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 gross failure on the part of
Employee (other than by reason of disability as provided in Section 1(e) below)
to faithfully and professionally carry out Employee’s duties or to comply with
any other material provision of this Agreement, which failure continues for
thirty (30) 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)  Employee’s dishonesty (which shall include without
limitation any misuse or misappropriation of the Company’s assets), or other
willful misconduct (including without limitation any conduct on the part of
Employee intended to or likely to injure the business of the Company);

 

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

 

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

 

(iv)  Employee’s failure to comply with a lawful written direction
of the Company; or

 

(v)  any wanton or willful dereliction of duties by Employee.

 

 

 (b)  Involuntary
Termination by the Company without Cause. The Company may involuntarily terminate
Employee’s employment under this Agreement at any time without Cause upon
delivery of written notice to Employee. Subject to the provisions of Section 1(g) hereof
(concerning termination in connection with a Change of Control (as defined in Section 1(g)), if Employee’s employment
is terminated involuntarily by the Company without Cause pursuant to this Section 1(b),
the Company shall:

 

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

 

(ii)  pay Employee in a lump sum one year’s Base Salary in effect as of the effective
date of termination;

 

(iii)  pay Employee in a
lump sum within thirty (30) days after termination; a pro rata portion of
Employee’s Target Incentive Bonus for the calendar year in which Employee’s
employment is terminated as provided in this Section 1(b), such portion to
be based on the number of full months for which Employee was employed during
the year of termination;

 

(iv)  maintain Employee’s
group medical coverage until the earlier of (a) the end of a period of
twelve months following the effective date of such termination, or (b) until
such time as comparable medical coverage is obtained by the Employee; and

 

(v) 
allow all vested options or other incentive securities to be exercised pursuant
to the terms of the option agreement or other agreements under which such
options or other incentive securities were granted.

 

(c)  Termination by Employee for Good Reason.
Employee may terminate
his employment under this Agreement for Good Reason upon the provision of
advance written notice to the Company specifying in reasonable detail the
events or conditions upon which Employee 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
Employee of such notice. Subject to the provisions of Section 1(g) hereof
(concerning termination in connection with a Change of Control), if the Company
elects in a written notice to Employee not to cure such events or conditions or
otherwise fails to so cure such events or conditions within such thirty (30)
day period, Employee may terminate his employment with the Company for
Good Reason pursuant to this Section 1(c) and in the event of such
termination, the Company shall:

 

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

 

(ii)  pay Employee in a lump sum
one year’s Base Salary in effect
as of the effective date of termination;

 

(iii)  pay Employee within thirty
(30) days after termination a pro
rata portion of Employee’s Target
Incentive Bonus for the calendar year in which Employee’s employment is
terminated as provided in this Section 1(c), such portion to be based on
the number of full months for which Employee was employed during the year of
termination;

 

 

(iv)  maintain Employee’s group medical coverage until the earlier
of (a) the end of a period of twelve months following the effective
date of such termination, or (b) until such time as comparable medical
coverage is obtained by the Employee; and

 

(v) 
allow all vested options or other incentive securities to be exercised pursuant
to the terms of the option agreement or other agreements under which such
options or other incentive securities were granted.

 

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

 

(A)  the Company’s material breach of any of the terms of this Agreement
or the letter agreement dated the date hereof between Employee and the Company
(the “Letter Agreement”);

 

(B)  the Company’s requiring Employee,
without his consent, to relocate from his residence or to commute more than
fifty (50) miles from the offices of the Company at which he was principally
employed on the date of this Agreement;

 

(C)  a diminution in Employee’s
Executive Vice President or Chief Financial Officer titles, or material
diminution in the duties or
responsibilities or conditions of his employment from those in effect on the
date hereof; or

 

(D)  a reduction by more than twenty percent (20%) in Employee’s annual Base Salary as in effect
on the date of this Agreement or as the same may be increased from time to
time after such date and prior to the delivery of such notice (other than such
a reduction applicable generally to substantially all employees of the
Company). 

 

(d)  Termination by Employee without Good Reason
(Voluntary Resignation). Employee may voluntarily resign his position and terminate his
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 Employee other than the payment of all accrued and
unpaid Base Salary and any other unpaid expenses or expense
reimbursements prior to the effective date of such termination.

 

(e)  Disability. If Employee becomes disabled for more than
one hundred eighty (180) days in any twelve (12) month period, the Company
shall have the right to terminate Employee’s employment without further
liability upon written notice to Employee. Without limiting the generality of
the foregoing, Employee shall be deemed disabled for purposes of this Agreement
either (i) if Employee 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, or any other reason, Employee cannot perform Employee’s
duties. In the event the Company shall
terminate Employee due to disability, as described above, Employee shall be
entitled to receive only those benefits provided under the Company’s Long Term
Disability Plan, and Employee’s stock options will be treated under the applicable
Disability section of the 2004 Stock Incentive Plan (the “2004 Plan”)
or any other stock option or incentive compensation plan of the Company under
which they were granted.

 

(f)  Death. In the event of the death of Employee, 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. In the
event of Employee’s death, Employee’s stock options shall be treated under the applicable
Death section of the 2004 Plan or any other stock option or incentive
compensation plan of the Company under which they were granted.

 

(g)  Change in Control Termination.

 

(i)  Benefits. In the event Employee’s employment under this
Agreement is terminated by the Company involuntarily without Cause or Employee
terminates his employment with the Company for Good Reason as defined in Section 1(c),
in either case at any time during the period commencing two (2) months
before and ending twelve (12) months after the occurrence of a Change in
Control, the Company shall:

 

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

 

(B) pay Employee a lump sum amount equal
to one and one-half (1.5) times Employee’s annual Base Salary in effect as of
the effective date of termination;

 

(C) pay Employee a lump sum amount equal
to one and one half (1.5) times the Employee’s Target Incentive Bonus;

 

(D) maintain Employee’s group medical coverage until the earlier
of (a) the end of a period of eighteen (18) months following the effective
date of termination or (b) such time as comparable medical coverage is
obtained by Employee.

 

Anything
contained in this Section to the contrary notwithstanding, Employee shall
not be entitled to any of the benefits set forth in this Section 1(g)(i) if
Employee either resigns and terminates such employment voluntarily (other than
for Good Reason, as described above) or is terminated by the Company for Cause.

 

For
purposes of Section 1(g) 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. In the
event Employee’s employment under this Agreement is terminated by the Company
involuntarily without Cause or Employee terminates his employment with the
Company for Good Reason, in either case at any time during the period
commencing two (2) months before and ending twelve (12) months after the
occurrence of a Change in Control:

 

(A) notwithstanding anything to the contrary contained in the 2004
Plan or any other stock
option or incentive compensation
plan of the Company, any unvested stock options or other incentive
securities which were granted to
Employee prior to or during the term of this Agreement under the 2004 Plan or
any such other stock option or incentive compensation plan shall immediately vest on the date of such termination of
Employee’s employment, the expiration date of the exercise period for such
options or other securities shall
be the earlier of (1) one (1) year following the date of termination
or (2) the expiration of the term of the option, and the Company

 

 

shall
take all actions necessary or advisable to give effect to this Section 1(g)(ii)(A);
and

 

(B) all vested options or other incentive securities held by Employee which were issued pursuant
to the 2004 Plan or any such other plan shall be exercisable pursuant to the
terms of the stock option agreement or other agreement(s) under which the options or other
incentive securities were granted, and
the Company shall take all actions necessary or advisable to give effect to
this Section 1(g)(ii)(B).

 

Anything contained in this Section to the
contrary notwithstanding, Employee shall not be entitled to any of the benefits
set forth in this Section 1(g)(ii) if Employee either resigns and
terminates such employment voluntarily (other than for Good Reason, as
described above) or is terminated by the Company for Cause.

 

(iii) 
Definition of “Change in Control.”  The definition of “Change in Control” set
forth in the 2004 Plan is incorporated, and made a part hereof, by
reference.

 

(iv)  Definition of “Acquiring Company.”  For purposes of Section 1(g) 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,
sale, asset purchase, or assignment of all or substantially all of the Company’s
assets, consolidation or share exchange
involving the Company, or the successor corporation to the Company (whether in
any such transaction or otherwise).

 

2. GENERAL
RELEASE. Notwithstanding
anything in this Agreement to the contrary, no payments shall be made or
benefits provided by the Company under Section 1 prior to the execution by
Employee at the time of termination of a general release in favor of the
Company and its affiliates, and its and their respective officers, employees
and directors. A form of general release is attached hereto as Exhibit A.

 

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

 

(b)  Certain
Excise Tax Provisions. Notwithstanding anything herein to the contrary:

 

(i) 
In the event that (1) any payments or benefits received or to be received
by Employee in connection with Employee’s employment with the Company (or
termination thereof), whether under this Agreement or otherwise (the “Total
Payments”), would subject Employee to the excise tax imposed under Section 4999
of the Code of 1986 (the “Excise Tax”), and (2) the amount of total
“parachute payment” as defined in Section 280G(b) of the Code to be
paid to the Employee is equal to or greater than 110 percent of 2.99 times the
Employee’s “base amount” as defined in Section 280G(b)(3) of the Code
(the “Safe Harbor Amount”), then the Company shall pay Employee in cash an
additional amount (the “Gross-Up Payment”) such that the net amount retained by
Employee after deduction of any Excise Tax upon the Total Payments and any
federal, state and local income tax and Excise Tax upon the Gross-Up Payment
shall be

 

 

equal to
the Total Payments. Such payments shall be made by the Company to Employee as
soon as practical following a determination that any of the Total Payments will
be subject to the Excise Tax, but in no event beyond thirty (30) days from such
date.

 

(ii) 
In the event that (1) the Total Payments would subject Employee to the
Excise Tax, and (2) the amount of the total “parachute payment” as
defined in Section 280G(b) of the Code to be paid to the Employee is
less than 110% of the Safe Harbor Amount, then, only to the extent necessary to
eliminate the imposition of the Excise Tax, such payments and benefits shall be
reduced, in the order and of the type mutually agreed to by the Employee and
the Company.

 

(iii) 
All determinations required to be made, including whether any of the Total
Payments will be subject to the Excise Tax and the amounts of such Excise Tax,
shall be made by the Company’s regular auditors (the “Accounting Firm”). The
Accounting Firm shall provide detailed supporting calculations both to the
Company and to Employee within 10 days after a request for such determinations
are made by Employee or the Company. Any such determination by the Accounting
Firm shall be binding upon the Company and Employee. For purposes of making any
determination hereunder, Employee shall be deemed to pay Federal, state and
local income taxes at the highest marginal rates applicable to Employee as of
the date of the determination.

 

4. NON-COMPETITION;
NON-SOLICITATION.

 

(a)  Restrictions. Employee shall not, during the course of
Employee’s employment with the Company or for a period of twelve (12) months
thereafter, 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 employee, 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,
Employee may make solely passive investments in any Competing Entity the
common stock of which is “publicly held” and of which Employee 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 employee or consultant, any person who is an employee of, or exclusive
consultant to, the Company.

 

(b)  Effect on the Company’s
Obligations. The
Company’s obligation to make payments and provide the other benefits pursuant
to Section 1 above shall terminate in the event that, and at such time as,
Employee is in breach of Employee’s obligations set forth in Section 4(a) above.

 

(c)  Definitions.
For purposes of this Section 4:

 

(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 providing to third parties
products or services for pre-clinical drug discovery or chemical development
which (x) include the outlicensing of small molecule libraries, the undertaking
of drug candidate screening, and/or related drug optimization activities, or
(y) utilize combinatorial chemistry or high-throughput screening technologies
in offering pre-clinical drug discovery services or (b) any business which
is engaged in the discovery and development of human therapeutic products.

 

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

 

Notwithstanding anything in the above to the
contrary, Employee may engage in the activities set forth in Section 4(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
Employee 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 Employee and (B) the business activities of the Competing Entity at the
time of Employee’s proposed engagement by such entity.

 

(d)  Acknowledgement. Employee 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). Employee acknowledges and agrees that, in the event that
Employee breaches any of the covenants set forth in this Section, 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 4 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.

 

5. ARBITRATION.
Any and all disputes between the parties (except actions to enforce the
provisions of Section 4 of this Agreement) arising under or relating to
this Agreement or any other dispute arising between the parties, including
claims arising under any employment discrimination laws, may be
adjudicated and resolved exclusively through binding arbitration before the
American Arbitration Association pursuant to the American Arbitration
Association’s then-in-effect National Rules for the Resolution of
Employment Disputes (hereinafter, “Rules”). The initiation and conduct of any
arbitration hereunder shall be in accordance with the Rules and, unless
expressly required by law, each side shall bear its own costs and counsel fees
in such arbitration. Any arbitration hereunder shall be conducted in Princeton,
New Jersey or at such other location as mutually agreed by the parties. Any
arbitration award shall be final and binding on the parties. The arbitrator
shall have no authority to depart from, modify, or add to the written
terms of this Agreement. The arbitration provisions of this Section shall
be interpreted according to, and governed by, the Federal Arbitration Act, 9
U.S.C. § 1 et seq., and any action pursuant to such Act to enforce
any rights hereunder shall be brought exclusively in any United States District
Court in the State of New Jersey. The parties consent to the jurisdiction of
(and the laying of venue in) any such court.

 

6. NOTICES.
For the purposes of
this Agreement, notices, demands and all other communications provided for in
this Agreement shall be in writing and shall be deemed to have been duly

 

 

given when delivered or (unless otherwise
specified) mailed by United States certified or registered mail, return receipt
requested, postage prepaid, addressed as follows:

 

(a)                                  If to the Company, to:

 

Pharmacopeia Drug Discovery, Inc.

3000 Eastpark Blvd.

Cranbury, NJ  08512

Attn.:  General Counsel

 

(b)                                 If to Employee, to:

 

Brian M. Posner

 

or
to such other address as a party hereto shall designate to the other party by
like notice, provided that notice of a change of address shall be effective
only upon receipt thereof.

 

7. WAIVER.
The waiver by the
Company or Employee of any breach of any provision of this Agreement shall not
operate or be construed as a waiver of any subsequent breach by Employee or the
Company, as applicable of any provision of this Agreement.

 

8. 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.

 

9. 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 Employee. This
Agreement may not be assigned by Employee. 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
Employee hereby consents to such assignment.

 

10. ENTIRE
AGREEMENT; AMENDMENTS. This Agreement, the Letter Agreement and the applicable bylaws and policies of the Company, constitute 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 Employee’s employment and compensation. The parties agree
that the Severance Agreement dated February 8, 2005 between them is hereby
terminated and that neither party has any further obligation or liability
toward the other thereunder. This Agreement may be amended only in writing
signed by Employee and the Chief Executive Officer or the General Counsel of
the Company.

 

11. COUNTERPARTS. This Agreement may be executed in one
or more counterparts, each of which shall be deemed to be an original but all
of which together will constitute one and the same instrument.

 

 

12. GOVERNING
LAW; FORUM SELECTION. This Agreement shall be governed by and
construed in accordance with the laws (other than conflicts of laws principles)
of the State of New Jersey applicable to contracts executed in and to be
performed entirely within such State. The parties consent to
jurisdiction and laying of venue in the state and federal courts of New Jersey
for purposes of resolving disputes under this Agreement

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the date first set forth above.

 

	
   

  	
  PHARMACOPEIA DRUG DISCOVERY, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   /s/ Leslie J. Browne

  	
   

  
	
   

  	
   

  	
  Leslie J. Browne, Ph.D.

  
	
   

  	
   

  	
  President and Chief
  Executive Officer

  
	
   

  	
   

  
	
   

  	
  EMPLOYEE

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Brian M. Posner

  	
   

  
	
   

  	
   

  	
  Brian M. Posner

  
						

 

 

EXHIBIT A

 

General
Release

 

IN
CONSIDERATION OF the terms and conditions contained in the Severance Agreement,
dated as of the     th day of           ,
20    , (the “Severance Agreement”) by and between                            
(“Employee”) and Pharmacopeia Drug Discovery, Inc. (the “Company”), and
for other good and valuable consideration, the receipt of which is hereby
acknowledged, Employee on behalf of himself and his heirs, executors,
administrators, and assigns, releases and discharges the Company and its
subsidiaries, divisions, affiliates and parents, and their respective past,
current and future officers, directors, employees, agents, and/or owners, and
their respective successors, and assigns and any other person or entity claimed
to be jointly or severally liable with the Company or any of the aforementioned
persons or entities (collectively the “Released Parties”) from any and all
manner of actions and causes of action, suits, debts, dues, accounts, bonds,
covenants, contracts, agreements, judgments, charges, claims, and demands
whatsoever (“Claims “) which Employee and his heirs, executors, administrators,
and assigns have, had, or may hereafter have, against the Released Parties
or any of them arising out of or by reason of any cause, matter, or thing
whatsoever from the beginning of the world to the date hereof. This General
Release of Claims includes, without limitation, any and all matters relating to
Employee’s employment by the Company and the cessation thereof, and any and all
matters arising under any federal, state, or local statute, rule, or
regulation, or principle of contract law or common law, including but not
limited to, the Family and Medical Leave Act of 1993, as  amended,
29 U.S.C. §§ 2601 et  seq., Title VII of the Civil Rights Act
of 1964, as  amended, 42 U.S.C. §§ 2000 et  seq.,
the Age Discrimination in Employment Act of 1967, as  amended, 29
U.S.C. §§ 621 et  seq. (the “ADEA”), the Americans with
Disabilities Act of 1990, as  amended, 42 U.S.C. §§ 12101 et
seq., the Worker Adjustment and Retraining Notification Act of 1988, as
amended, 29 U.S.C. §§2101 et  seq., Employee Retirement
Income Security Act of 1974, as  amended, 29 U.S.C. §§ 1001 et
seq. (“ERISA”), the New Jersey Law Against Discrimination, N.J.S.A.
10:15-1, et seq., the New Jersey Conscientious Executive Protection Act,
N.J.S.A. 34:19-1 to 19-8, the New Jersey Wage and Hour Act, N.J.S.A. 34-11-56a,
et seq., and any other equivalent or similar federal, state, or local statute;
provided, however, that Employee does not release or discharge the Released
Parties from (i) any of the Company’s obligations to him under the Severance
Agreement, and (ii) any vested benefits to which he may be entitled
under any employee benefit plan or program subject to ERISA. It is understood
that nothing in this General Release is to be construed as an admission on
behalf of the Released Parties of any wrongdoing with respect to Employee, any
such wrongdoing being expressly denied.

 

Employee
represents and warrants that he fully understands the terms of this General
Release, that he is hereby advised to consult with legal counsel before signing,
and that he knowingly and voluntarily, of his own free will, without any
duress, being fully informed, and after due deliberation, accepts its terms and
signs below as his own free act. Except as otherwise provided herein, Employee
understands that as a result of executing this General Release, he will not
have the right to assert that the Company or any other of the Released Parties
unlawfully terminated his employment or violated any of his rights in
connection with his employment or otherwise.

 

 

Employee
further represents and warrants that he has not filed, and will not initiate,
or cause to be initiated on his behalf any complaint, charge, claim, or
proceeding against any of the Released Parties before any federal, state, or
local agency, court, or other body relating to any claims barred or released in
this General Release thereof, and will not voluntarily participate in such a
proceeding. However, nothing in this general release shall preclude or prevent
Employee from filing a claim, which challenges the validity of this general
release solely with respect to Employee’s waiver of any Losses arising under
the ADEA. Employee shall not accept any relief obtained on his behalf by any
government agency, private party, class, or otherwise with respect to any
claims covered by this General Release.

 

Employee may take
twenty-one (21) days to consider whether to execute this General Release. Upon
Employee’s execution of this General Release, Employee will have seven (7) days
after such execution in which he may revoke such execution. In the event
of revocation, Employee must present written notice of such revocation to the
Company’s Chief Executive Officer. If seven (7) days pass without receipt
of such notice of revocation, this General Release shall become binding and
effective on the eighth (8th) day after the execution hereof (the “Effective
Date”).

 

INTENDING TO
BE LEGALLY BOUND, I hereby set my hand below:

 

	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Dated:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  NOTARIZATION

  
	
   

  	
   

  	
   

  
	
  State of

  	
   

  	
   

  	
  )

  	
   

  
	
  County of

  	
   

  	
   

  	
  )

  	
  ss.

  
											

 

On this             
day of                         
in the year            before
me, the undersigned, personally appeared                                              ;
personally known to me or proved to me on the basis of satisfactory evidence to
be the individual whose name is subscribed to the within instrument, and
acknowledged to me that he executed the same in his capacity as an individual,
and that by his signature on the instrument he executed such instrument, and
that such individual made such appearance before the undersigned.

 

 

	
   

  	
   

  	
   

  
	
   

  	
  Notary Public

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