Document:

<PAGE>
                                                                    EXHIBIT 10.2

                             COMPENSATION AGREEMENT

This agreement having an effective date of 22 August, 2001 is by and between
CIMA LABS, INC., a Delaware corporation, doing business at 10,000 Valley View
Road, Eden Prairie, MN 55344 (CIMA), Dr. Joseph R. Robinson, an individual,
residing at 41 Chequamegon Bay, Madison, WI 53719 (Dr. Robinson) and Dr.
Jonathan Eichman, an individual, residing at 29 North Ridge Road, Pomona, NY
10970 (Dr. Eichman).

Whereas, CIMA has developed an effervescent drug delivery system and uses this
system to develop, make and sell pharmaceutical products for itself and for its
partners,

Whereas, Dr. Robinson and Dr. Eichman are named co-inventors on four U.S. patent
applications (listed in Attachment 1) directed to effervescent drug delivery
systems and have assigned their rights to these patent applications, and all
related U.S. and foreign patent applications and patents, to CIMA,

Whereas, CIMA has expressly agreed to compensate Dr. Robinson for his assignment
of his patent rights by paying him with a percentage of sales of products that
are covered by patents that issue or are granted from the patent applications
that Dr. Robinson and Dr. Eichman have assigned to CIMA according to the terms
of a letter agreement dated January 28, 1998 (Attachment 2),

Whereas, Dr. Robinson and Dr. Eichman have agreed that any compensation that
accrues from sales of products that are covered by patents that issue or are
granted from the patent applications that Dr. Robinson and Dr. Eichman have
assigned to CIMA shall be divided equally between them according to the terms of
a letter agreement dated May 10, 1998 (Attachment 3),

Whereas, CIMA, Dr. Robinson and Dr. Eichman desire to confirm the general terms
of their earlier agreements and to provide additional details that establish
ongoing obligations and conditions between the parties as set out in this
Agreement.

In consideration of these premises and of the mutual promises set forth below,
CIMA, Dr. Robinson and Dr. Eichman agree as follows.

                                  Definitions

PATENT RIGHTS means the four U.S. patent applications listed in Attachment 1
that name Dr. Robinson and Dr. Eichman as co-inventors and that are assigned to
CIMA and any patents that are issued or granted from these patent applications
as well as any related U.S. or foreign patent applications or patents that claim
priority from these patent applications including but not limited to reissues,
reexaminations, extensions (or other administrative or governmental actions
which provide exclusive rights to a patent assignee in patented subject matter
beyond the original patent expiration date), substitutions, confirmations,
registrations,

                                       1
<PAGE>

revalidations, additions, continuations, continuations-in-part, or divisions of
these patent applications or patents.

PRODUCT means a commercially available product containing a pharmaceutically
active ingredient that is sold by CIMA or sold by a third party that is supplied
such a product by CIMA and that is within the scope of an enforceable and valid
claim in any of the PATENT RIGHTS or such product whose method of manufacture or
use is within the scope of an enforceable and valid claim in any of the PATENT
RIGHTS.

NET SALES means (i) the amount of any payment received by CIMA from a third
party due to sales of PRODUCT to such third party or (ii) the amount invoiced
for sales of PRODUCT by CIMA less reasonable and customary deductions from these
proceeds including trade or discount allowances, returned or defective product
credits, sales or other taxes, transportation or shipping charges, and charge
back payments or rebates.

                                  Compensation

CIMA shall pay Dr. Robinson 1% of NET SALES and Dr. Eichman 1% of NET SALES
received by CIMA after the effective date of this Agreement. These payments to
Dr. Robinson and Dr. Eichman will be made two times each calendar year, one
payment due on about June 30 and another payment due on about December 31.

                               Patent Prosecution

Dr. Robinson and Dr. Eichman shall provide reasonable assistance, at CIMA's
request, to CIMA and shall execute any documents as necessary to for CIMA to
prepare, file, prosecute, maintain, enforce or defend any patent applications or
patents under PATENT RIGHTS. CIMA shall have no liability to Dr. Robinson and
Dr. Eichman for its acts or its failure to act with respect to any patent
applications or patents under PATENT RIGHTS.

                         Representations and Warranties

Dr. Robinson and Dr. Eichman represent and warrant that they have no agreements,
commitments or obligations that conflict in any way with the terms and
obligations of this Agreement and that they will not enter into any agreements,
commitments, obligations during the term of this Agreement that would conflict
with terms and obligations of this Agreement.

Dr. Robinson and Dr. Eichman represent and warrant the they have been fully
advised and represented by their own legal counsel, or that they have had the
opportunity to be advised and represented by their own legal counsel, during the
negotiation, drafting and execution of this Agreement. In interpreting and
applying the terms and obligations of this Agreement, the parties agree that no
presumption shall exist or be implied against the party that drafted such terms
and obligations.

                                       2
<PAGE>

                                   Termination

This Agreement shall be effective as of the effective date written above and
shall continue until the expiration of the last to expire of any U.S. or foreign
patent under PATENT RIGHTS provided that no NET SALES shall accrue or be payable
to Dr. Robinson or Dr. Eichman for any PRODUCT sold in a country where any
claims in any of the PATENT RIGHTS have expired or have been determined to be
unenforceable or invalid.

                                   Arbitration

All disputes arising between the parties related to the making of or performance
under this Agreement shall be governed by binding arbitration pursuant to the
process set forth in Attachment 4.

                         Entire Agreement and Amendment

This Agreement sets forth the entire agreement between the parties relating to
the subject matter contained herein. Neither this Agreement nor any right or
obligation under this Agreement shall be modified, amended, assigned, or
discharged except as expressly stated in this Agreement or as expressly stated
in a written agreement signed by the parties to this Agreement.

 /s/ John M. Siebert                                   Dated:  August 22, 2001
----------------------------------
         CIMA

 /s/ Joseph R. Robinson                                Dated:  August 16, 2001
----------------------------------
     Joseph R. Robinson

 /s/ Jonathan Eichman                                  Dated:  August 21, 2001
----------------------------------
     Jonathan Eichman

                                       3
<PAGE>

                                  Attachment 1

U.S. Patent Application Ser. No. 09/327,814 entitled "Sublingual Buccal
Effervescent"

U.S. Patent Application Ser. No. 09/302,105 entitled "Effervescent Drug Delivery
System for Oral Administration"

U.S. Patent Application Ser. No. 09/664,870 entitled "Pharmaceutical
Compositions for Rectal and Vaginal Administration"

U.S. Provisional Patent Application Ser. No. 60/079,652 entitled "Effervescent
Drug Delivery System for Oral Cavity"

<PAGE>

                                  Attachment 2

                                [CIMA Letterhead]

January 28, 1998

Joseph R. Robinson, Ph.D.
41 Chequamegon Bay
Madison, Wisconsin 53719

RE:  New Technology of Drug Delivery Systems

Joe,

Per our discussions, any patents covering inventions created individually by you
or jointly with members of CIMA staff during our interaction to develop new
enabling drug delivery technology are to be assigned to CIMA LABS INC. Once the
patent applications are on file, we would then develop and sign an agreement
which would provide you a royalty equal to 2% of all CIMA sales of products
developed covered by patents issuing from such patent applications and marketed
either by one of our partners or by CIMA itself for the life of the patent.

It is CIMA's understanding that all such inventions described above will be
owned by you and not the University of Wisconsin. If this arrangement is
acceptable to you, please signify your acceptance by signing and dating below.
Please return the original to me and keep a copy for yourself.

Sincerely,

/s/ John M. Siebert
----------------------------------
John M. Siebert, Ph.D.

JMS/cjm

/s/ Joseph R. Robinson                                3/17/98
----------------------------------              ------------------
Joseph R. Robinson, Ph.D.                              Date

<PAGE>

                                  Attachment 3

     AGREEMENT BETWEEN JONATHAN EICHMAN AND JOSEPH R. ROBINSON RELATIVE TO ANY
     CIMA COMMERCIAL PRODUCT, MAKING USE OF THE PATENT BY JONATHAN EICHMAN AND
     JOSEPH R. ROBINSON

                                  May 10, 1998

         Whereas Jonathan Eichman and Joseph R. Robinson have developed
patentable technology and licensed the same to CIMA laboratories, and Cima
Laboratories has agreed to pay 2% royalty on gross sales for any commercialized
product making use of this technology, both Jonathan Eichman and Joseph R.
Robinson have agreed to divide this 2% royalty on an equal basis. Thus, each
individual will receive 1% royalty on all monies that acrue from this invention.

 /s/ Jonathan Eichman                          /s/ Joseph R. Robinson
--------------------------------------         ---------------------------------
Jonathan Eichman                               Joseph R. Robinson

            May 15, 1998                                  May 10, 1998
--------------------------------------         ---------------------------------
Date                                           Date

<PAGE>

                                  Attachment 4

                               ARBITRATION PROCESS

         (a) Scope. All differences, disputes, claims or controversies arising
out of or in any way connected or related to this Agreement, whether arising
before or after the expiration of the term of this Agreement, and including,
without limitation, its negotiation, execution, delivery, enforceability,
performance, breach, discharge, interpretation and construction, existence,
validity and any damages resulting therefrom or the rights, privileges, duties
and obligations of the parties under or in relation to this Agreement (including
any dispute as to whether an issue is arbitrable) shall be referred to binding
arbitration in accordance with the rules set forth herein and of the American
Arbitration Association, as in effect at the time of the arbitration. The time
frames set forth herein shall control the timing of the arbitration procedure.

         (b) Parties to Arbitration. For the purposes of an arbitration under
this Agreement, CIMA Dr. Robinson or Dr. Eichman may be a party to the
arbitration.

         (c) Notice of Arbitration. A party requesting arbitration hereunder
(the "Requesting Party") shall give written notice of arbitration to the other
party (the "Non-requesting Party") containing a concise description of the
matter submitted for arbitration (a "Notice of Arbitration").

         (d) Response. The Non-requesting Party must respond in writing within
thirty (30) days of receiving a Notice of Arbitration with an explanation,
including references to the relevant provisions of the Agreement. The
Non-requesting Party may add additional issues to be resolved.

         (e) Meeting. Within fifteen (15) days of receipt of the response from
the Non-requesting Party pursuant to Paragraph (d), the parties shall meet and
discuss in good faith options for resolving the dispute. The Requesting Party
must initiate the scheduling of this resolution meeting. Each party shall make
available appropriate personnel to meet and confer with the other party during
such fifteen (15) day period.

         (f) Selection of Arbitrator. Any and all disputes that cannot be
resolved pursuant to Paragraphs (c), (d) and (e) shall be submitted to an
arbitrator (the "Arbitrator") to be selected by mutual agreement of the parties.
The Arbitrator shall be a retired judge of a state or federal court, to be
chosen from a list of such retired judges to be prepared jointly by the parties
within fifteen (15) days following the response, with each party entitled to
submit the names of three such retired judges for inclusion in the list,
provided that to the extent the dispute involves issues of patent law the
parties shall limit such list to judges from federal courts having jurisdiction
over patent law issues. Upon completion of the list, the parties shall decide
within ten (10) days thereafter which of the retired judges will be selected as
the Arbitrator. No Arbitrator appointed or selected hereunder shall be an
employee, director or

                                       1
<PAGE>

shareholder of, or otherwise have any current or previous relationship with, any
party or its respective Affiliates. If the parties fail to agree on the
selection of the Arbitrator within the allotted time frame, the Arbitrator shall
be designated by the then President of the American Arbitration Association.

         (g) Powers of Arbitrator. The Arbitrator may determine all questions of
law and jurisdiction (including questions as to whether a dispute is arbitrable)
and all matters of procedure relating to the arbitration, except that the
Arbitrator shall be bound by the time frames set forth herein in connection with
such arbitration. The Arbitrator shall have the right to grant legal and
equitable relief (including injunctive relief and to award costs (including
reasonable legal fees and costs of arbitration) and interest. Nothing contained
herein shall be construed to permit the Arbitrator to award punitive, exemplary
or any similar damages.

         (h) Arbitration Procedure. The arbitration shall take place in
Minneapolis, MN at such place and time, consistent with the time frames set
forth herein, as the Arbitrator may fix for the purpose of hearing the evidence
and representations that the parties may present. The law applicable to the
arbitration shall be the law of the State Minnesota. No later than twenty (20)
business days after hearing the representations and evidence of the parties, the
Arbitrator shall make its determination in writing and deliver one copy to each
of the parties.

         (i) Discovery and Hearing. During the meeting referred to in Paragraph
(e), the parties shall negotiate in good faith the scope and schedule of
discovery, relating to depositions, document production and other discovery
devices, taking into account the nature of the dispute submitted for resolution.
If the parties are unable to reach agreement as to the scope and schedule of
discovery, the Arbitrator may order such discovery as it deems necessary. The
parties and the Arbitrator must adhere to the following schedule: (1) all
discovery shall be completed within sixty (60) days from the date of the
selection of the Arbitrator, and (2) the arbitration hearing shall commence
within twenty (20) days after completion of such discovery. At the arbitration
hearing, the parties may present testimony (either live witness or deposition),
subject to cross-examination, and documentary evidence. To the extent
practicable taking into account the nature of the dispute submitted for
resolution and the availability of the Arbitrator, the hearing shall be
conducted over a period not to exceed thirty (30) consecutive business days,
with each party entitled to approximately half of the allotted time.

         (j) Witness Lists. At least twenty (20) business days prior to the date
set for the hearing, each party shall submit to each other party and the
Arbitrator a list of all documents on which such party intends to rely in any
oral or written presentation to the Arbitrator and a list of all witnesses, if
any, such party intends to call at such hearing and a brief summary of each
witness' testimony. Each party shall be given the opportunity to depose any such
designated witnesses not already deposed during the discovery phase. At least
five (5) business days prior to the hearing, each party must submit to the
Arbitrator and serve on each other party a proposed findings of fact and
conclusions of law on each issue to be resolved. Following the close of
hearings, the parties shall each submit such post-hearing briefs to the

                                       2
<PAGE>

Arbitrator addressing the evidence and issues to be resolved as may be required
or permitted by the Arbitrator.

         (k) Confidentiality. The arbitration proceedings shall be confidential
and, except as required by law, no party shall make, or instruct the Arbitrator
to make, any public announcement with respect to the proceedings or decision of
the Arbitrator without the prior written consent of the other party. The
existence of any dispute submitted to arbitration and the award of the
Arbitrator shall be kept in confidence by the parties and the Arbitrator, except
as required in connection with the enforcement of such award or as otherwise
required by law.

         (l) Awards and Appeal. Subject to the provisions of this Attachment 4,
the decision of the Arbitrator shall be final and binding upon the parties in
respect of all matters relating to the arbitration, the conduct of the parties
during the proceedings, and the final determination of the issues in the
arbitration. There shall be no appeal from the final determination of the
Arbitrator to any court, except in the case of fraud or bad faith on the part of
the Arbitrator or any party to the arbitration proceeding in connection with the
conduct of such proceedings. Judgment upon any award rendered by the Arbitrator
may be entered in any court having jurisdiction thereof.

         (m) Costs of Arbitration. The costs of any arbitration hereunder shall
be borne by the parties in the manner specified by the Arbitrator in its
determination.

         (n) Performance of the Agreement. During the pendency of the
arbitration proceedings, the parties shall continue to fully perform their
respective obligations under the Agreement. For purposes of this Paragraph (n)
the term "pendency of the arbitration proceeding" shall mean the period starting
on the date on which arbitration proceedings are commenced by a party in
accordance with Paragraph (c) of this Attachment 4 and ending on the date on
which the Arbitrator delivers its final determination in writing to the parties.

                                       3<PAGE>
                                                                    EXHIBIT 10.3

                               [CIMA Letterhead]

June 23, 2003

John M. Siebert, Ph.D.
10759 Mount Curve Blvd.
Eden Prairie, MN 55347

Dear John:

         This letter will confirm our agreement to amend and restate our earlier
Letter Agreement, dated April 4, 2003 (the "Original Letter Agreement"),
regarding the transition and termination of your employment with CIMA LABS INC.
(the "Company"). The sole purpose of this Amended and Restated Letter Agreement
(the "Letter Agreement") is to resolve the parties' current dispute regarding
the nature of your working relationship with CyDex, Inc. and its impact on your
continued employment with the Company by replacing the last sentence of section
2 of the Original Letter Agreement with the underscored language reflected in
section 2 below. This Letter Agreement shall not be construed as in any other
way imposing obligations on either party beyond those set forth in the Original
Letter Agreement and restated herein.

         1. Employment. Your employment with the Company will end as a result of
your retirement effective December 31, 2003, or such earlier date in accordance
with paragraph 2 below. Your status as President and Chief Executive Officer of
the Company ("CEO") ended effective April 30, 2003. While you are employed by
the Company during the period from May 1, 2003 through December 31, 2003 (the
"Transition Period"), you will perform such transition duties as may be
requested by the Company. Such transition duties requested by the Company will
not exceed eight days per month during the Transition Period and will be
performed by you at times mutually agreed upon with the Company. During the
Transition Period, you may provide consulting services for other business
entities so long as such services are not "directly competitive" (as defined in
paragraph 9 below) and do not interfere with your ability to provide services to
the Company in accordance with this paragraph.

         2. Termination of Employment. Between now and December 31, 2003, the
Company may terminate your employment only (a) for "Cause," as defined in the
Employment Agreement between you and the Company, dated as of June 30, 2000 (the
"Employment Agreement"), provided, however, that a material breach by you of
this Letter Agreement shall be considered a material breach of the Employment
Agreement; or (b) if you become employed with any other employer. If you
commence employment with any other employer, your employment with the Company
will immediately end without further action by either you or the Company. For
purposes of this Letter Agreement, the terms "employer" and "employment" shall
have their common law meaning. See Nationwide Mut. Ins. Co. v. Darden, 503 U.S.
318 (1992). Notwithstanding the above, the parties agree that your stated
working relationship with CyDex, Inc. between now and December 31, 2003 shall
not be considerered "employment" and CyDex shall not be considered your
"employer" during that same period of time.

<PAGE>
John M. Siebert, Ph.D.
June 23, 2003
Page 2

         3. Compensation During Employment. While you are employed by the
Company, you will continue to receive base salary at your current annual rate of
$336,544.00 and those benefits as set forth in Section 3(c), (d), (e), and (f)
of the Employment Agreement. Except as provided in paragraph 5(b)(iii) of this
Letter Agreement below, you will not be eligible for any incentive bonus for
calendar year 2003. You will not be eligible for any other compensation or
benefits from the Company relating to your employment or the termination of your
employment except as stated in this Letter Agreement.

         4. Releases. At the time you signed the Original Letter Agreement, you
executed a Release By John M. Siebert attached to the Original Letter Agreement
as Exhibit A (the "First Release"). The First Release is specifically
incorporated into this Letter Agreement by reference hereto. On or within 21
days after your last day of employment with the Company, you will sign a second
Release in the form enclosed with this Letter Agreement as Exhibit 1 (the
"Second Release"), as a condition of receiving the pay and benefits set forth in
paragraph 5(b) of this Letter Agreement.

         5. Compensation Following Employment.

            a. In the event of termination by the Company for Cause, the Company
shall have no further obligation to you under this Letter Agreement except to
pay your base salary and benefits accrued through your last date of employment,
including without limitation any earned and unused vacation time in accordance
with the normal policies and practices of the Company.

            b. In the event of termination of your employment for any reason
other than for Cause, and if you sign the Second Release on or within 21 days
following your last date of employment and have not rescinded the First Release
or the Second Release within 15 days after signing each of them, and subject to
your complying with all terms of this Letter Agreement, the Company will provide
you with the following additional benefits:

               i. The Company will pay you, or in the event of your death, your
         Estate, devisees, heirs, beneficiaries, assigns, or successors in
         interest, an amount equal to your final base salary, at the annual rate
         of $336,544.00, for the period from your last date of employment and
         continuing for twelve (12) months. Such pay will be subject to normal
         tax withholdings and will be paid by the Company in accordance with its
         regular payroll schedule.

               ii. If following your last date of employment you, or in the
         event of your death, or any of your dependents, elect to continue your
         group medical and dental insurance in accordance with the terms of the
         applicable plans and laws, the Company will continue to pay its portion
         of the monthly premiums for such coverage as if you were still employed
         by the Company, from your last date of employment through the earlier
         of (i) twelve (12) months following your last date of employment, (ii)
         the date you become eligible for other health or dental (as applicable)
         insurance benefits through a new employer, and (iii) the date
         continuation coverage is no longer available in accordance

<PAGE>
John M. Siebert, Ph.D.
June 23, 2003
Page 3

         with the applicable plans or laws. Your continued coverages will be at
         the same level as in effect as of your last date of employment. The
         Company shall deduct your contributions for the monthly premiums from
         the pay described in paragraph 5(b)(i) above of this Letter Agreement.
         You agree to notify the Company in writing within three (3) days of
         your acceptance of any employment that provides health or dental
         insurance benefits.

               iii. The Company will pay you, or in the event of your death,
         your Estate, devisees, heirs beneficiaries, assigns or successors in
         interest, a prorated annual bonus for calendar year 2003, in the amount
         of $78,461.25, less normal tax withholdings. Such bonus payment will be
         paid at the same time as annual bonus payments are paid to other
         management employees of the Company for calendar year 2003, but in no
         event later than March 31, 2004.

            c. If your employment with the Company continues through December
31, 2003, you agree that all of your earned vacation time will be used and that
you will not be entitled to payment for any earned vacation time upon
termination of your employment. If your employment with the Company terminates
before December 31, 2003 for any reason, the Company will pay you upon
termination for earned and unused vacation time in accordance with the normal
policies and practices of the Company.

         6. Stock Options. You currently have options to purchase shares of the
Common Stock of the Company in accordance with the following schedule, assuming
your continued employment with the Company through December 31, 2003:

<TABLE>
<CAPTION>
  Plan             Date of              Exercise           Number of            Amount
                   Grant                Price              Shares Granted       Exercisable as of
                                                                                12/31/03
 -----------       -------------        -------------      --------------       ------------------
<S>                <C>                  <C>                 <C>                    <C>
  DIR              08/04/1994           $9.00               20,000                 20,000
  DIR              06/07/1995           $4.75                7,500                  7,500
  SOAP             07/01/1995           $4.00               75,000                      0
  SOAP             07/01/1995           $4.00              105,000                 32,300
  SOAP             10/29/1997           $5.875              48,937                 48,937
  SOAP             10/29/1997           $5.875              51,063                      0
  SOAP             04/24/1998           $4.375              22,857                      0
  SOAP             04/24/1998           $4.375              57,143                 57,143
  SOAP             06/01/1999           $3.375              25,000                 25,000
  SOAP             06/30/2000           $20.25              14,814                  9,876
  SOAP             06/30/2000           $20.25              85,186                 56,790
  2001 SIP         02/20/2003           $18.19              31,397                      0
</TABLE>

You agree and acknowledge that all of your options to purchase the Company's
Common Stock are listed above and will lapse and cease to be outstanding 90 days
following your last date of employment, unless previously exercised in
accordance with the terms of the applicable option

<PAGE>
John M. Siebert, Ph.D.
June 23, 2003
Page 4

agreement and plan (and subject to adjustment in accordance with the applicable
option agreements if your employment terminates before December 31, 2003).

         7. Confidential Information. Except as permitted or directed by the
Board, during the term of your employment with the Company and at any time
thereafter, you will not divulge, furnish, or make accessible to anyone or use
in any way (other than in the ordinary course of business of the Company) any
confidential or secret knowledge of the Company which you have acquired or
become acquainted with, or will acquire or become acquainted with, prior to the
termination of the period of your employment by the Company, whether developed
by yourself or by others, concerning any trade secrets, confidential or secret
designs, processes, formulae, plans, devices, or materials (whether or not
patented or patentable), directly or indirectly useful in any aspect of the
business of the Company, any customer or supplier list of the Company, any
confidential or secret development or research work of the Company, or any other
confidential information or secret aspects of the business of the Company. You
acknowledge that the above-described knowledge or information constitutes a
unique and valuable asset of the Company and represents a substantial investment
of time and expense by the Company and its predecessors, and that any disclosure
or other use of such knowledge or information other than for the sole benefit of
the Company would be wrong and would cause irreparable harm to the Company. Both
during and after the term of your employment with the Company, you will refrain
from any acts or omissions that would reduce the value of such knowledge or
information to the Company. The foregoing obligations of confidentiality,
however, shall not apply to any knowledge or information which is now published
or which subsequently becomes generally publicly known in the form in which it
was obtained from the Company, other than as a direct or indirect result of a
breach by you of this Letter Agreement or of any other obligation of
confidentiality to the Company.

         8. Return of Proprietary Property. You agree that all property in your
possession belonging to the Company, including without limitation, all
documents, reports, manuals, memoranda, computer print-outs, customer lists,
credit cards, keys, identification, products, access cards, and all other
property relating in any way to the business of the Company are the exclusive
property of the Company, even if you authored, created, or assisted in authoring
or creating such property. You shall return to the Company all such documents
and property immediately upon termination of employment or at such earlier time
as the Company may reasonably request.

         9. Restrictive Covenant. You acknowledge that the Company needs to be
protected against the potential for unfair competition and impairment of the
Company's goodwill by your use of the Company's training, assistance,
confidential information, and trade secrets in direct competition with the
Company. You therefore agree that during your employment with the Company and
for a period of one (1) year thereafter, you will not operate, join, control, be
employed by, or participate in ownership, management, operation, or control of,
or be connected in any manner as an independent contractor, consultant, or
otherwise, with any person or organization engaged in any business activity
which is the same as, or directly competitive with any business of the Company
or any successor of the Company as of the date of the termination of your
employment with the Company within the states of the United States of America.
For

<PAGE>
John M. Siebert, Ph.D.
June 23, 2003
Page 5

purposes of this paragraph, "directly competitive" means any business or
technical activity that is either described in any granted patent or patent
application (whether or not yet filed) owned by or licensed to the Company at
any time during your employment with the Company. You agree that the provisions
of this paragraph 9 shall survive the termination of your employment with the
Company or the termination of this Letter Agreement, whether such termination be
voluntary or involuntary, or with or without cause.

         10. Covenant Not to Recruit. You recognize that the Company's work
force constitutes an important and vital aspect of its business. You agree that
during your employment with the Company and for a period of one (1) year
thereafter, you will not recruit or solicit, or assist anyone else in the
recruitment or solicitation of, any of the Company's then current employees to
terminate their employment with the Company and to become employed by any
business enterprise with which you may then be associated or connected, whether
as an owner, employee, partner, agent, investor, consultant, contractor or
otherwise. You expressly agree that the provisions of this paragraph 10 shall
survive the termination of your employment with the Company or the termination
of this Letter Agreement, whether such termination be voluntary or involuntary
or with or without cause.

         11. Severability. In the event any provision of this Letter Agreement
shall be held illegal or invalid for any reason, said illegality or invalidity
will not in any way affect the legality or validity of any other provision
hereof. It is the intention of the parties hereto that the Company be given the
broadest possible protection respecting its confidential information and trade
secrets; and respecting competition by you following the termination of your
employment with the Company.

         12. Remedies. You agree that, in addition to, but not to the exclusion
of any other available remedy, the Company shall have the right to enforce the
provisions of paragraphs 7, 8, 9, and 10 by applying for and obtaining temporary
and permanent restraining orders or injunctions from a court of competent
jurisdiction without the necessity of filing a bond therefore, and the
prevailing party in any such action shall be entitled to recover reasonable
attorneys' fees and costs in enforcing or defending any claims regarding the
provisions of paragraphs 7, 8, 9, and 10.

         13. Company Obligations. The sole obligations of the Company will be
its obligations as set forth in this Letter Agreement, except as otherwise
provided by law. This Letter Agreement represents the entire agreement between
you and the Company relating to your employment, the termination of your
employment, and compensation and benefits relating thereto. This Letter
Agreement supersedes all prior negotiations, discussions,
communications and agreements relating to the same subject matter, including
without limitation the Employment Agreement, except as specifically incorporated
herein.

         14. Governing Law; Venue. All matters relating to the interpretation,
construction, application, validity and enforcement of this Letter Agreement
shall be governed by the laws of the State of Minnesota. Any action at law, suit
in equity, or judicial proceeding arising directly, indirectly, or otherwise in
connection with, out of,

<PAGE>
John M. Siebert, Ph.D.
June 23, 2003
Page 6

related to or from this Letter Agreement or any provision hereof, shall be
litigated only in the courts of the State of Minnesota, County of Hennepin. You
hereby waive any right you may have to transfer or change the venue of any
litigation brought against you by the Company.

                                    * * * * *

         This Letter Agreement is intended to amend and restate all the terms of
the conclusion of your employment by the Company. Please indicate your
acceptance of all such terms by signing both copies of this Amended and Restated
Letter Agreement, and returning one copy to the undersigned.

                                      Sincerely,

                                      CIMA LABS, INC.

                                      /s/ Steven B. Ratoff

                                      Steven B. Ratoff
                                      Chairman of the Board and Interim
                                      Chief Executive Officer

On this 7th day of July, 2003, I, John M. Siebert, hereby accept and agree to
the terms of the above Letter Agreement. I further acknowledge that I have 21
days after the last date of my employment to decide whether to sign the Second
Release. I also hereby specifically confirm (a) that I am being advised by the
Company to seek independent advice from legal counsel of my own selection in
connection with this Letter Agreement, the First Release and the Second Release
(and that I have had adequate opportunity to do so); and (b) that I have not
relied to any extent on any statement or other communication from any
shareholder, director, officer, employee, attorney or agent of the Company in
connection herewith.

 /s/ John M. Siebert                                     7 Jul 2003
-----------------------------------               --------------------------
John M. Siebert, Ph.D.                            Dated

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