Document:

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                                                                    Exhibit 10.1

                              EMPLOYMENT AGREEMENT

                  THIS AGREEMENT has been made and entered into as of the 1st
day of August, 2000 between CHATTEM, INC., a Tennessee corporation ("Company")
and _______________ ("Executive").

                                   WITNESSETH

                  WHEREAS, the Executive currently serves as a key employee of
the Company and his services and knowledge with respect to the Company and its
business strategies and operations are critical to maintaining the Company's
position in its industry against its competitors;

                  WHEREAS, the Board of Directors of the Company has determined
that it is in the best interests of the Company and its shareholders to secure
the Executive's continued services, and in the event of his departure, the
Executive's agreement to not compete with the Company for a period sufficient to
allow stability to the Company in its business strategies and operations.

                  NOW, THEREFORE, in consideration of the mutual covenants
herein contained, and for other good and valuable consideration, the receipt and
legal sufficiency of which are hereby acknowledged, Company and Executive agree
as follows:

                  1.       STATED TERM. This Employment Agreement shall be
deemed to commence on August 1, 2000, and unless it is terminated earlier in
the manner provided below in this Agreement, shall continue for a term of
three years and upon each anniversary date of this Agreement shall be deemed
to automatically renew for a new three year term from such anniversary date.
Not later than each anniversary date of this Agreement, either party shall
have the right to provide written notice of their intention to have the
Agreement expire at the end of the then-pending three year term period
without automatic renewal.

                  2.       DUTIES. During the term of employment set forth in
this Agreement, Company shall employ Executive, and Executive shall serve, as
Chairman of the Board and Chief Executive Officer, or in such other similar
positions as may be assigned by the Company's Board of Directors. Executive
shall perform faithfully the duties assigned to Executive by the Board of
Directors of Company pursuant to this Agreement to the best of Executive's
ability and shall devote substantially all of Executive's business time and
attention to Company's business.

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                  3.       SALARY. Company shall pay to Executive a salary at
the rate of $370,000 per annum in equal monthly installments or on whatever
basis the Company pays other executives. The Compensation Committee of the
Board of Directors of the Company shall at least annually evaluate and
establish a base salary for Executive for the upcoming year in an amount
determined to be appropriate by the Compensation Committee.

                  4.       INCENTIVE COMPENSATION. Executive shall be
entitled to participate in the Company's annual incentive compensation plan
and any other plans subsequently adopted by the Company and shall be eligible
to receive grants of stock options pursuant to the terms of the Company's
stock option plans established for its executives as approved by the
Compensation Committee of the Board of Directors from time to time.

                  5.       WITHHOLDING OF TAXES. Any payments to Executive,
to the estate of Executive, or to the designated beneficiary or beneficiaries
of Executive pursuant to the terms of this Agreement shall be reduced by such
amounts as are required to be withheld under all present and future federal,
state and local tax laws and regulations and other laws and regulations.

                  6.       BENEFITS. During the term of employment hereunder,
Executive shall be entitled, to the extent Executive is otherwise eligible,
to participate fully in all benefits provided by Company for its employees
generally, including, but not limited to, any retirement plans, life, health,
and long-term disability insurance maintained from time to time by Company.
Executive shall also receive an allowance for the use of an automobile for
the duration of this Agreement and such other perquisites as may be
established by the Company from time to time for its executives.

                  7.       EXPENSE ALLOWANCE. Executive is authorized to
incur, or to cause Company to incur, reasonable expenses in connection with
the performance of Executive's duties hereunder. Company shall reimburse
Executive for all such expenses upon the presentation by Executive from time
to time of an itemized account of such expenditures.

                  8.       VACATION. Executive shall be entitled to paid
vacation days each year in such amounts as may be permitted under the
Company's vacation policies generally. The timing of Executive's vacation
shall be scheduled in a reasonable manner by Company and the Executive.

                  9.       TERMINATION BEFORE EXPIRATION OF STATED TERM. The
Executive's employment pursuant to this Agreement shall terminate prior

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to the expiration of its stated term upon the first to occur of the following:

                           (a)      The voluntary resignation of Executive.

                           (b)      Executive's death.

                           (c)      Executive's permanent disability. The term
"permanent disability" shall mean physical or mental incapacity of a nature
which has prevented or will prevent Executive, in the sole judgment of the Board
of Directors of Company, from performing on a full-time basis each of the
material duties of Executive for a period of 12 consecutive weeks or 24 weeks
within any period of 12 consecutive months.

                           (d)      Executive's employment being terminated by
Company for cause. Termination "for cause" shall be limited solely to
termination because of Executive's indictment or conviction for a felony or
other crime involving substantial moral turpitude, alcoholism, drug addiction or
the gross, active misfeasance of the Executive with regard to his duties with
the Company. Termination for cause shall occur immediately upon delivery to
Executive of a notice of such action by Company, which notice shall specify the
ground for such termination.

                           (e)      Executive's employment being terminated by
Company without cause. Termination "without cause" shall mean termination of
employment on any basis other than by expiration of the stated term, voluntary
resignation, death, permanent disability, or termination for cause, provided
that, voluntary resignation when the Company constructively discharges the
Executive shall also be deemed termination without cause. "Constructively
Discharges" shall mean changes the location of Executive's principal place of
employment from Chattanooga, Tennessee, or reduces the Executive's status,
duties, responsibilities or direct or indirect compensation, (including future
increases commensurate with those given other managers of the Company), or so
alters the style or philosophy of the conduct of the Company's business, in the
opinion of the Executive, as to cause it to be undesirable to the Executive to
remain in the employ of the Company.

                  10.      DUTIES OF EXECUTIVE ON TERMINATION. Upon the
termination of his employment under this Agreement, Executive shall
immediately return any and all property of Company in the possession of
Executive, including, without limitation, all documents, contracts, financial
information and records.

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                  11.      COMPENSATION PAYABLE TO EXECUTIVE ON TERMINATION.
The rights of Executive to compensation upon termination of employment are as
follows:

                           (a)      In the case of the expiration of the stated
term of the Agreement, Company shall pay to Executive any salary and bonus
accrued to the date of expiration of the Agreement.

                           (b)      In the case of the death of Executive,
Company shall pay to Executive's beneficiary or beneficiaries designated in
writing to Company, or to Executive's estate in the absence or lapse of such
designation, the salary, as in effect at the date of Executive's death, through
the last day of the month in which death occurred and any accrued bonus as of
the last day of the month in which death occurred.

                           (c)      In the case of the permanent disability of
Executive, Company shall pay to Executive the salary, as in effect at the date
of Executive's permanent disability, through the last day of the month in which
such permanent disability is determined and any accrued bonus as of the last day
of the month in which such permanent disability occurred.

                           (d)      If Executive's employment is terminated for
cause, Company's only obligation to Executive shall be payment of the salary
accrued on the date on which such termination occurs.

                           (e)      If Executive's employment is terminated as
a result of a voluntary resignation, Executive shall be entitled to continuing
monthly payments of 75 percent of Executive's monthly base salary at the time of
termination payable during the period of non-competition provided in Section 12
below.

                           (f)      If Executive's employment is terminated
without cause, including voluntary resignation when the Company constructively
discharges the Executive, the Executive shall be entitled to receive (i)
continuing monthly payments equal to 75 percent of Executive's monthly base
salary at the time of termination payable during the period of non-competition
provided in Section 12 below, and (ii) a lump sum payment equal to 25 percent of
the amount that would have been payable during the remainder of the three year
term to the Executive based upon the Executive's base salary at the time of
termination as liquidated damages for the early termination of this Agreement
provided that such amount shall be proportionately refunded to the Company by
the Executive to the extent the Executive is successful during the remainder of
the stated term of the Agreement in securing employment in

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a comparable executive position with another employer in Chattanooga,
Tennessee, with a base salary at least equal to the base salary of Executive
upon termination of employment. In addition, the Company shall continue to
provide to the Executive at its cost and expense health, medical and life
insurance benefits at substantially the same level of benefits as the
Executive has at the date of termination of employment during the remainder
of the stated term of the Agreement.

                  12.      NON-COMPETE. Executive covenants and agrees that
Executive will not, at any time during the term of this Agreement and, in the
event of termination for cause, termination upon voluntary resignation, or
termination without cause, for a period of 18 months following such
termination of employment, accept compensation or anything of value from, nor
offer or provide any services, including consulting services, to any person,
company, partnership, joint venture or other entity in a capacity involving,
in whole or in part, health and beauty aid products sold over-the-counter
which are competitive with the products of Company existing on the date of
termination of employment with annual sales for the Company's most recently
completed fiscal year in excess of $10 million. This provision applies only
to entities selling the above specified products in competition with the
Company in the United States.

                  13.      CONFIDENTIALITY OBLIGATIONS. During the term of
this Agreement and for a period of 18 months following termination of
employment, the Executive agrees to maintain all confidential information and
trade secrets obtained during the course of his employment with the Company
as confidential and to disclose the same to no one, other than in the
furtherance of the Company's business in the normal course or to a fellow
employee with a reasonable need to know, unless the Executive can demonstrate
by documentary evidence that such information was (1) known to him prior to
his employment with the Company; (2) subsequently became part of the public
domain through no fault of his own; or (3) was subsequently disclosed to him
by a third party not in violation of any obligation of confidentiality and
non-use with the Company.

                  14.      INJUNCTION. Executive expressly recognizes that
any breach of the provisions of this Agreement is likely to result in
irreparable injury to Company and that monetary damages may not adequately
compensate Company for such breach. Therefore, Executive agrees that Company
shall be entitled, if it so elects, to institute and prosecute proceedings in
any court of competent jurisdiction not only to obtain damages for any breach
of this Agreement, but also to enforce the specific performance of this
Agreement by Executive and to enjoin Executive from activities in violation
of this Agreement.

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Further, Executive agrees that any breach of the provisions of this Agreement
shall automatically toll and suspend the period of restraint for the amount
of time that the breach continues.

                  15.      ATTORNEY FEES AND OTHER COSTS. If any legal action
or other proceeding is brought for the enforcement of this Agreement, or
because of an alleged dispute, breach, default or misrepresentation in
connection with any provision of this Agreement, Company shall be entitled to
recover reasonable attorney fees as well as court costs and all expenses not
taxable as court costs. This remedy shall include, without limitation, all
such fees, costs and expenses incident to appeals.

                  16.      NO WAIVER OF BREACHES. The failure of a party to
require the performance of a provision of this Agreement shall not constitute
a waiver of a subsequent breach or nullify the effect of such provision.

                  17.      GOVERNING LAW. This Agreement shall be construed
in accordance with the laws of Tennessee.

                  18.      NOTICES. Any notice required or permitted herein
shall be in writing and shall be mailed, postage prepaid, or sent by
overnight courier, properly addressed to the other party at the address set
forth below, subject to change by written notice of either party to the other:

                  Company:

                  Chattem, Inc.
                  1715 West 38th Street
                  Chattanooga, TN 37409
                  Attention:  President

                  Executive:

                  -------------------------

                  -------------------------

                  -------------------------

Any notice shall be considered given when deposited in the U.S. Mail or
delivered to an overnight courier.

                  19.      SURVIVAL OF OBLIGATIONS. All covenants,
agreements, representations and warranties made herein or otherwise made in
writing

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by either party to this Agreement shall survive the execution and delivery of
this Agreement and the performance of the services contemplated hereby.

                  20.      SEVERABILITY. If any one or more of the provisions
contained in this Agreement shall for any reason be held to be excessively
broad as to time, duration, geographical scope, activity or subject, it shall
be construed, by limiting and reducing it, so as to be enforceable to the
extent compatible with the applicable law as it shall then appear. If,
moreover, any one or more of the provisions contained in this Agreement shall
for any reason be held to be invalid, illegal or unenforceable in any
respect, such invalidity, illegality, or unenforceability shall not affect
any other provision of this Agreement, but this Agreement shall be construed
as if such invalid, illegal or unenforceable provision had never been
contained therein.

                  21.      ENTIRE AGREEMENT. This Agreement and the Severance
Agreement dated simultaneously herewith constitute the full and complete
understanding and agreement of the parties with respect to the employment of
Executive by Company and supersede all prior understandings and agreements
regarding Executive's employment. This Agreement may be modified only by a
written instrument executed by both parties.

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

                                        CHATTEM, INC.

                                        By:
                                           -----------------------------------
                                        Title:
                                              --------------------------------

                                        --------------------------------------
                                             [Executive]

                                       7<PAGE>

                                                                    EXHIBIT 10.2

                    AMENDED AND RESTATED SEVERANCE AGREEMENT

                  This Agreement is made and entered into as of the 1st of
August, 2000, by and between CHATTEM, INC., a Tennessee corporation (the
"Company") and ____________ (the "Executive").

                                   WITNESSETH

                  WHEREAS, the Company is desirous of assuring itself of
continuity of management through the hiring and retention of certain key
executives, and to foster their unbiased and analytical assessment of any offer
to acquire control of the Company;

                  WHEREAS, the Company believes it is in the best interests of
the Company and its stockholders to provide the Executive with adequate
financial security and sufficient encouragement to the Executive to remain with
the Company notwithstanding the possibility of a change of control of the
Company;

                  WHEREAS, the Company and the Executive have previously entered
that certain Non-Competition and Severance Agreement dated November 6, 1985, as
amended May 31, 1995, which provides certain benefits in the event of a change
in control of the Company, which the Company desires to amend and restate in the
form hereinafter set forth; and

                  WHEREAS, the Executive is willing to continue to provide
services for the long-term benefit of the Company and its shareholders in
exchange for the specified severance benefits provided hereunder.

                  NOW, THEREFORE, the Company and the Executive do hereby agree
as follows:

                  1.         TERM.  The term of this Agreement shall commence
                       as of the day and year first above written and continue
                       indefinitely thereafter for a period ending three (3)
                       years after the termination of the Executive's
                       employment with the Company.

                  2.         SEVERANCE BENEFITS. If the Company Discharges or
                       Constructively Discharges the Executive during the term
                       of this Agreement within twenty-four (24) months after
                       the occurrence of a Change in Control, he shall receive
                       a Severance Benefit. In addition, after a Change in
                       Control, the Executive shall be entitled to resign his

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                       position with the Company and elect to receive the
                       Severance Benefit (the "Election") at any time during
                       the period commencing one-hundred and eighty (180) days
                       after the Change in Control and ending two-hundred and
                       forty (240) days after the Change in Control
                       notwithstanding that the fact that no Discharge or
                       Constructive Discharge has occurred. These terms are
                       hereby defined as follows: 1.

                       A.  "Change in Control":

                                 (i)   Change of one-third (1/3) or more of any
                           directors of the Company within any twelve (12) month
                           period; or

                                 (ii)  Change of one-half (1/2) or more of the
                           directors of the Company within any twenty-four (24)
                           month period; or

                                 (iii) Acquisition by any person of the
                           ownership or right to vote of thirty-five (35%)
                           percent or more of the Company's outstanding voting
                           shares. "Person" shall mean any person, corporation,
                           partnership, or any entity and any affiliate or
                           associate thereof. "Affiliate" and "associate" shall
                           have the meanings assigned to them in Rule 12(b)(2)
                           of the General Rules and Regulations under the
                           Securities Exchange Act of 1934.

                       B.  "Discharges": terminates the Executive for any
                           reason other than indictment or conviction for a
                           felony or other crime involving substantial moral
                           turpitude, disability, death, alcoholism, drug
                           addiction or the gross, active misfeasance of the
                           Executive with regard to his duties with the Company.

                       C.  "Constructively Discharges": changes location or
                           reduces the Executive's status, duties,
                           responsibilities or direct or indirect compensation,
                           (including future increases commensurate with those
                           given other managers of the Company), or so alters
                           the style or philosophy of the conduct of the
                           Company's business, in the opinion of the Executive,
                           as to

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                           cause it to be undesirable to the Executive to
                           remain in the employ of the Company.

                       D.  "Severance Benefit": a payment equal to two-hundred
                           ninety-nine (299%) percent of the Executive's average
                           annual includible compensation from the Company
                           during the five (5) most recently completed taxable
                           years before the date on which the Change in Control
                           occurs. Any partial taxable years shall be
                           annualized. If the event that the Executive's
                           employment is less than five (5) years, the average
                           annual compensation should be calculated based on the
                           rate of compensation for the actual term of
                           employment.

                                 Notwithstanding the foregoing Severance Benefit
                           formula, any payments to which the Executive is
                           entitled upon Discharge or Constructive Discharge
                           from the Company shall be adjusted so that the
                           aggregate present value of all "parachute
                           payments" (as defined in Section 280G of the
                           Internal Revenue Code of 1986, as amended from
                           time to time (the "Code") to which the Executive
                           is entitled is less than 300% of the Executive's
                           "annualized includible compensation for the base
                           period" as defined in the Code, unless, taking
                           into account the applicable federal, state and
                           local income taxes and the excise tax imposed by
                           Section 4999, the payment of the full Severance
                           Benefit results in the receipt by the Executive on
                           an after-tax basis of the greatest amount of
                           benefit under this Section 2 notwithstanding that
                           all or some portion of such Severance Benefit may
                           be taxable under Section 4999 of the Code. The
                           determination as to whether there is any
                           adjustment (and the extent thereof) in the
                           payments due the Executive because of this
                           paragraph shall be made in writing within thirty
                           (30) days after Discharge or Constructive
                           Discharge or Election, by the Company's
                           independent certified public accounts on the date
                           of the Change in Control and shall be final and
                           binding on the Executive and the Company. The
                           Company shall furnish said independent certified

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                           public accountants with all data required to make
                           said determination within ten (10) days after
                           Discharge or Constructive Discharge or Election.
                           If there is any such adjustment, the Executive may
                           elect in the Executive's sole discretion which
                           payments or distributions shall be reduced and/or
                           which payments or distributions shall be deferred
                           and promptly notify the Company in writing of such
                           election.

                  3.       PAYMENT. The Severance Benefit shall be paid to the
                       Executive in a lump sum or, at the Executive's
                       election, in two (2) equal installments with the first
                       to be made not later than thirty (30) days after
                       Discharge or Constructive Discharge or Election and
                       the second installment one (1) year after the first
                       installment was paid. No interest shall be due upon
                       the Severance Benefit unless it is not paid when due
                       and in which case interest shall accrue thereon at the
                       applicable Federal rate used to determined present
                       value under Section 280G of the Internal Revenue Code
                       of 1986, as amended.

                  4.       ARBITRATION OF ALL DISPUTES. Any controversy or claim
                       arising out of or relating to this Agreement or the
                       breach thereof, shall be settled by arbitration in the
                       City of Chattanooga in accordance with the laws of the
                       State of Tennessee by three (3) arbitrators, one of
                       whom shall be appointed by the Company, one by the
                       Executive and the third of whom shall be appointed by
                       the first two arbitrators. If the first two
                       arbitrators cannot agree on the appointment of a third
                       arbitrator, then the third arbitrator shall be
                       appointed by the American Arbitration Association. The
                       arbitration shall be conducted in accordance with the
                       rules of the American Arbitration Association.
                       Judgement upon the award rendered by the arbitrators
                       may be entered in any court having jurisdiction
                       thereof. In the event that it shall be necessary or
                       desirable for the Executive to retain legal counsel
                       and/or incur other costs and expenses in connection
                       with the enforcement of any and all of his rights
                       under this Agreement, the Company shall pay (or the
                       Executive shall be entitled to recover from the
                       Company, as the case may be) his reasonable attorneys'
                       fees and costs and expenses in connection with the
                       enforcement of his

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                       said rights (including the enforcement of any
                       arbitration award in court), regardless of the final
                       outcome, unless the arbitrators shall determine that
                       under the circumstances recovery by the Executive of
                       all or a part of any such fees and costs and expenses
                       would be unjust.

                  5.       NOTICES. Any notices, requests, demands and other
                       communications provided for by this Agreement shall be
                       sufficient if in writing and if sent by registered or
                       certified mail to the Executive at the last address he
                       has filed in writing with the Company or, in the case
                       of the Company, at its principal executive offices
                       addressed to the President.

                  6.       NON-ALIENATION. The Executive shall not have any
                       right to pledge, hypothecate, anticipate or in any way
                       create a lien upon any amounts provided under this
                       Agreement; and no benefits payable hereunder shall be
                       assignable in anticipation of payment either by
                       voluntary or involuntary acts, or by operation of law.
                       Notwithstanding the foregoing provisions, in the event
                       that the Executive dies following Discharge or
                       Constructive Discharge after a Change in Control but
                       before receiving all of his Severance Benefit, the
                       unpaid Severance Benefit shall be paid to his Estate
                       in accordance with the terms of this Agreement.

                  7.       GOVERNING LAW. The provisions of this Agreement shall
                       be construed in accordance with the laws of the State of
                       Tennessee.

                  8.       AMENDMENT. This Agreement may not be amended or
                       cancelled except by the mutual agreement of the parties
                       in writing.

                  9.       SUCCESSORS TO THE COMPANY. Except as otherwise
                       provided herein, this Agreement shall be binding upon
                       and inure to the benefit of the Company and any
                       successor of the Company.

                  10.      SEVERABILITY. In the event that any provision or
                       portion of this Agreement shall be determined to be
                       invalid or unenforceable for any reason, the remaining
                       provisions of this Agreement shall be unaffected
                       thereby and shall remain in full force and effect.

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                  IN WITNESS WHEREOF, the Executive has hereunto set his hand
and, pursuant to the authorization from its Board of Directors, the Company has
caused these presents to be executed in its name on its behalf, and its
corporate seal to be hereunto affixed and attested by its Secretary, all as of
the day and year first above written.

                                       -------------------------------------
                                                [Executive]

                                       CHATTEM, INC.

                                       By:
                                          ----------------------------------
                                          Title:
                                                ----------------------------

ATTEST:

----------------------------
Secretary
(SEAL)

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