Document:

Unassociated Document

    Employment
      AGREEMENT

    

    

    THIS
      AGREEMENT
      is made
      as of the 3rd day of December 2006. 

    

    

    BETWEEN:

    Deepak
      Gupta

    of
      the
      City of Pleasanton, CA 94566 

    (hereinafter
      referred to as the "Employee")

    

    AND:

    

    WORKSTREAM
      INC.,

    a
      corporation incorporated under the laws of Canada

    (hereinafter
      referred to as the "Employer")

    

    WHEREAS:

     

    The
      Employer wishes to employ the Employee and the Employee wishes to serve the
      Employer upon the terms and subject to the conditions herein
      contained.

    

    NOW
      THEREFORE
      in
      consideration of the premises and the mutual covenants herein and other good
      and
      valuable consideration the receipt and sufficiency of which is hereby
      acknowledged by each of the parties, the parties hereto covenant and agree
      as
      follows:

    

     

    
      	1.	
              DEFINITIONS

            

    

    In
      this
      agreement, unless the context otherwise specifies or requires, the following
      terms shall have the following meanings:

    

    
      	 	 	
              1.1

            	
              "Agreement,"
                "hereto," "herein," "hereof," "hereunder"
                and similar expressions refer to this Agreement and not to any particular
                section or any particular portion of this Agreement and includes
                all
                schedules attached to this
                Agreement;

            

    

    
      	 	 	 	 

      	 	 	
              1.2

            	
              “President”
                shall mean the President of Enterprise Software for the
                Company;

            

      	 	 	 	 

      	 	 	1.3	"Court"
              shall mean a Court of competent
              jurisdiction;

      	 	 	 	 

    

    
      	 	 	
              1.4

            	
              "Parties"
                shall mean the Parties to this Agreement and "Party" shall mean one
                of the
                Parties to this Agreement.

            

    

    

    
      	2.	
              EMPLOYMENT

            

    

     

    
      	 	 	
              2.1

            	
              The
                Employer agrees to employ the Employee and the Employee agrees to
                act as
                President or in such other employment as the Employer and the Employee
                may
                from time to time agree in writing and the Employee agrees to serve
                the
                Employer upon the terms and subject to the conditions set out in
                this
                Agreement.

            

    

    

    
      	 	 	
              2.2

            	
              The
                Employee specifically undertakes and agrees with the Employer that
                he
                shall be responsible for the
                following:

            

    

    

    
      	2.2.1  	
              for
                fulfilling the title and role of the President of the Employer; and
                

            

    

    

    
      	2.2.2  	
              such
                other duties as may be reasonably required by the Board of Directors
                of
                Employer.

            

    

    .

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    
      	3.	
              TERM

            

    

     

    
      	 	 	
              3.1

            	
              The
                Initial Term of this Agreement shall be a period of two (2) years
                from the date hereof. Unless written notice is given by either party
                at
                least ninety (90) days before the end of the Initial Term or any
                one (1)
                year extension thereof (each, a “Renewal Term”), that they wish this
                Agreement to terminate at the end of the Initial or respective Renewal
                Term, whichever may apply, this Agreement will be automatically extended
                by successive one year Renewal Terms. Any references herein to the
“Term”
                shall include both the Initial Term and any and all Renewal Terms.
                If
                Employer provides notice of termination pursuant to this Section
                3.1,
                Employee shall be shall be entitled to the payments set forth in
                section
                10.1.3 hereof, to be provided within thirty (30) days after his
                termination. 

            

    

    

    REMUNERATION

    
      	 	 	
              4.1

            	
              In
                consideration of the Employee’s undertaking and the performance of the
                obligations contained in this Agreement, the Employer shall, unless
                otherwise agreed upon by all parties to this Agreement, pay and grant
                the
                following remuneration to the
                Employee:

            

    

    

    
      	
            	4.1.1	
              Base
                Salary. The Employee shall be entitled to receive a salary, not less
                than
                $300,000.00
                (U.S.) per year Employee’s
                base annual compensation shall be subject to review annually for
                possible
                adjustment by the Company (by action of the Compensation Committee
                of the
                Board of Directors) and shall be agreed to by the Company and the
                Employee.

            

    

    
      	 	 	 

      	 	4.1.2	
              Bonus. In
                addition to the base salary specified in section 4.1.1 the Employee
                shall
                be entitled to an aggregate annual bonus of $200,000.00 (U.S.) based
                on
                certain targets being achieved. The Parties will mutually agree to
                these
                targets. Achievement of targets will be assessed on a quarterly basis,
                and
                any bonus earned for a particular quarter, as reasonably determined
                by the
                Employer, will be paid to the Employee within 30 days after the close
                of
                the quarter

            

      	 	 	 

      	 	
              4.1.3

            	
              Stock
                Options.
                In
                addition to the base salary outlined in section 4.1.1 on the first
                date of
                employment, the Employee shall be granted a stock option to purchase
                1,000,000 shares of common stock of the Employer (the “Option Shares”) at
                a price that is the closing price on the NASDAQ market on the date
                of the
                option grant. In addition, the Employee will be granted at least
                250,000
                additional options on the first anniversary of the initial option
                grant.
                These options shall vest one third annually over a three (3) year
                period,
                beginning on the first anniversary of the date of the option grant.
                

            

      	 	 	 

      	 	4.1.4 	
              Restricted
                Stock Units: In
                addition to the base salary outlined in section 4.1.1 on the first
                date of
                employment, the Employee shall be granted 250,000 Restricted Stock
                Units
                (the “RSU’s”). These RSU’s shall vest one-third over a three (3) year
                period, beginning on the first anniversary of the date of the grant.
                Upon
                separation for any reason, Employee will be entitled to any Restricted
                Stock then vested.

            

    

    

       

    

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    
      	
              5.

            	
              BENEFITS

            

    

    
      	 	 	 	
              5.1

            	
              In
                consideration of the Employee’s undertaking and the performance of the
                obligations contained in this Agreement, the Employer shall, unless
                otherwise agreed upon by all parties to this Agreement, pay and grant
                the
                following benefits to the Employee:

            

    

    

    
      	 	 	 	
              5.1.1

            	
              Vacation.
                The Employee shall be entitled to vacation time of three (3) weeks
                each calendar year. Such vacation time shall be used at times mutually
                agreeable to the Employee and the
                Employer.

            

    

    

    
      	 	 	 	
              5.1.2

            	
              Other
                Benefits. The
                Employee shall be entitled to participate in all benefit programs
                provided
                by Employer to its executives effective upon the Employee’s start date.
                The Employer shall pay for single coverage premiums for the Employee
                and
                his family for health and dental (if any) insurance offered by the
                Employer. The Employer shall pay for the Employee’s STD/LTD premiums.
                

            

    

    

    
      	 	 	 	
              5.1.3

            	
              Expenses.
                Employer shall pay Employee $500 per month toward a car allowance.
                In
                addition, the Employer shall reimburse the Employee for all reasonable
                and
                necessary business expenses, including but not limited to cellular
                phone
                expenses, upon the presentation to the Employer of appropriate written
                documentation and receipts. 

            

    

    

    
      	
              6.

            	
              ATTENTION
                TO DUTIES

            

      	 	
              The Employee shall devote his
                whole
                working time and attention to the Employer during the Term of this
                Agreement and will not engage in any other capacity or activity which,
                in
                the sole opinion of the Employer acting reasonably, would hinder
                or
                interfere with the performance of the duties of the Employee, however,
                the
                Employee shall be permitted, to the extent that such activities do
                not
                materially interfere with the performance of his duties and
                responsibilities hereunder, to (i) manage his personal and family
                financial affairs, (ii) serve on civic, not-for-profit or charitable
                industry boards and advisory committees, (iii) on the board of United
                Security Applications and (iv) serve on the Boards of Directors or
                similar
                governing bodies of one other business entities (provided, that the
                business of such entities is not competitive with the business of
                the
                Company, as determined and approved by the Board of Directors, whose
                determination and approval shall not be unreasonably
                withheld).

            

    

     

    

    
      	
              7.

            	
              CONFIDENTIALITY

            

      	 	
              The parties acknowledge that
                in carrying
                out his duties under this Agreement, the Employee will have access
                to and
                become entrusted with confidential information regarding the business
                plans and operations of the Employer, computer systems and technology,
                unique methodology and other proprietary information. The Employee
                acknowledges that the right to maintain such detailed confidential
                information constitutes a proprietary right, which the Employer is
                entitled to protect. Accordingly, the Employee shall not, during
                the Term
                of this Agreement, or for up to 3 years thereafter, disclose any
                of such
                detailed confidential information or trade secrets of the Employer
                to any
                person or persons, firm, association or corporation, nor shall the
                Employee use the same for any purpose, in either case, except on
                behalf of
                the Employer. Notwithstanding the foregoing, the obligations of the
                Employee in this Section 7 shall not apply to confidential information
                (i) which at the date hereof or thereafter becomes a matter of public
                knowledge without breach by the Employee of this Agreement; or
                (ii) which is obtained by the Employee from a person, firm, or entity
                (other than the Employer or an affiliate of the Employer) under
                circumstances permitting its use or disclosure to others.
                

            

    

     

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    
      	
              8.

            	
              OWNERSHIP
                OF INVENTIONS

            

    

    
      	 	 	 	
              8.1

            	
              The
                Employee shall promptly communicate and disclose to the Employer
                all
                inventions, improvements, modifications, discoveries, designs, formulae,
                methods and processes made, discovered or conceived by the Employee
                either
                alone or jointly with others, during the period of his employment
                with the
                Employer, providing the same relate to or are capable of being used
                by the
                corporation or any affiliate thereof in the normal course of their
                businesses.

            

    

    

    
      	 	 	 	
              8.2

            	
              The
                Employee acknowledges and declares that all inventions, improvements,
                modifications, discoveries, designs, formulae, methods, processes,
                as are
                described in section 8.1 hereof, and all patents and patent applications
                relating thereto are the property of the Employer and hereby assigns
                to
                the Employer all of the right, title and interest of the Employee
                in any
                such inventions, improvements, modifications, discoveries, designs,
                formulae, methods and processes, and in any patents or patent applications
                relating thereto. The Employee shall, at the Employer’s expense, execute
                all instruments and documents and do all such further acts and things
                as
                may be necessary or desirable, in the Employer's opinion to carry
                out the
                provisions of this section.

            

    

    

    
      	
              9.

            	
              NON-COMPETITION
                

            

      	 	
              The Employee shall not, without
                prior
                written consent of the Employer for the period of his employment
                hereunder
                or for a period of one (1) year following the termination of this
                Agreement or any renewal hereof, for any reason be it for cause or
                not,
                either alone or in conjunction with any individual, firm, corporation,
                association or any entity, except for the Employer, whether as principal,
                agent, shareholder, employee or in any other capacity whatsoever,
                perform
                the duties of or provide the services as are described in section
                2.2
                hereof in a business which competes with the Employer, within any
                geographical location where the Employer has carried on business
                or
                expended time and personnel and financial resources. Furthermore,
                the
                Employee also agrees that upon the termination of his employment
                he will
                not solicit to hire or encourage to leave their employ, any of the
                Employer's other employees for a period of one (1) year following
                termination of this Agreement. Notwithstanding the foregoing, the
                Employee
                shall not be precluded from competing with the business of the Employer
                in
                the event his employment is terminated by the Employee for good reason
                or
                by the Employer other than for cause, unless the Employer provides
                the
                applicable compensation and benefits set out in section 10.1.3 hereof,
                in
                which case, the Employee shall be precluded from competing as described
                in
                this section 9 until such time as such compensation and benefits
                are
                terminated. 

            

    

     

    
      	
              10.

            	
              TERMINATION

            

    

    
      	 	 	 	
              10.1

            	
              The
                parties understand and agree that employment pursuant to this Agreement
                may be terminated during the Term in the following manner in the
                specified
                circumstances:

            

    

    

    
      	 	 	 	
              10.1.1

            	
              by
                the Employee without good reason (as defined below), on the giving
                of not
                less than one (1) month prior written notice to the Employer, which
                the
                Employer may waive, in whole or in
                part;

            

    

    

    
      	 	 	 	
              10.1.2

            	
              by
                the Employee for good reason on the giving of not less than one (1)
                month
                prior written notice to the Employer, if the Employer has not cured
                the
                event giving rise to good reason by the end of such notice period.
                For
                purposes of this Agreement good reason shall mean, absent the Employee’s
                prior written consent: (i) the Employer’s failure to timely provide the
                Employee with the salary, bonus and equity as set forth in section
                4.1
                hereof or to provide benefits to the Employee in accordance with
                section
                5.1 hereof; (ii) a material breach by the Employer of this Agreement
                or
                any other agreement with the Employee; (iii) a material diminution
                by the
                Employer in the Employee’s title, responsibilities, authority, reporting
                structure; (iv) Employer requiring Employee to change his office
                location
                to a place which is more than 50 miles from his current residence
                (current
                residence address is 1844 Zenato Place, Pleasanton, CA 94566); or
                (v)
                failure of the Employer to ensure that any successor or assign of
                the
                Employer agrees in writing to be bound by the terms of this Agreement
                If
                the Employee terminates his employment for good reason, he shall
                be
                entitled to the payments set forth in section 10.1.3 hereof, to be
                provided within thirty (30) days after his termination;
                

            

    

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    
      	
               

               

            	10.1.3	
              by
                the Employer in its absolute discretion
                without cause upon not less than one (1) month prior written notice
                to the
                Employee, on giving the Employee a payment equal to (i) twelve (12)
                months
                salary at the rate in effect on the Employee’s termination date; (ii) the
                value of twelve (12) months of benefits and entitlements the Employee
                was
                enjoying as of his termination date (including but not limited to
                the cost
                to Employee to pay for twelve (12) months of COBRA payments for health
                and
                dental (if any) family insurance coverage); (iii) all salary, benefits
                and
                entitlements to which the Employee is entitled in accordance with
                any
                relevant statute
                or
                law; and (iv) if the employment of the Employee is terminated during
                the
                first 12 months of the employment then the vesting schedule of the
                Employee’s unvested outstanding stock options and RSU awards will
                accelerate by 12 months, and he will be permitted to exercise vested
                options for 9 months following termination of employment; if the
                employment of the Employee is terminated after the first 12 months
                of the
                employment then the vesting schedule of the Employee’s unvested
                outstanding stock options and RSU awards will accelerate by 9 months,
                and he will be permitted to exercise vested options for 9 months
                following termination of employment. The payment representing this
                aggregate amount shall be paid within thirty (30) days from notice
                provided herein;

            

    

     

    
      	 	 	 	
              10.1.4

            	
              by
                the Employer for cause. The parties agree that for the purposes of
                this
                Agreement, “cause” shall mean the following, as reasonably determined by
                the Employer in good faith, and that the Employee shall be terminated
                immediately upon written notice for such
                cause:

            

    

    

    
      	 	 	
              10.1.4.1

            	
              any
                material breach of the provisions of this Agreement or of an established
                written policy of the Employer after Employer provided written notice
                to
                Employee and 30 day opportunity to cure during which time Employee
                failed
                to cure; 

            

    

     

    
      	 	 	
              10.1.4.2

            	
              any
                intentional or grossly negligent disclosure of any confidential
                information as described in section 7 hereof, by the
                Employee;

            

    

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    
 

    
      	 	 	
              10.1.4.3

            	
              in
                carrying out his duties hereunder, the Employee; (i) has been grossly
                negligent, or (ii) has committed willful gross misconduct;
                

            

    

    

    
      	 	 	
              10.1.4.4

            	
              Employee’s
                conviction of a felony or other criminal act, as reasonably determined
                in
                good faith in the sole discretion of the Employer, it would materially
                injure the reputation of the Employer if the Employee is retained
                as an
                Employee; 

            

    

     

     

    
      	 	 	 	
              10.2

            	
              The
                Parties understand and agree that the giving of notice or the payment
                of
                termination pay, and severance pay, as required by the Employer to
                the
                Employee on termination shall not prevent the Employer from alleging
                cause
                for the termination.

            

    

    
 

    
      	
              11.

            	
              RESULTS
                OF TERMINATION

            

    

    
      	 	 	 	
              11.1

            	
              If
                this Agreement is terminated for cause, as described in section 10.1.4
                hereof, the Employee shall be entitled to receive his remuneration
                to the
                date of such termination for cause, including any and all vacation
                pay and
                bonuses earned to date.

            

    

    

    
      	 	 	 	
              11.2

            	
              If
                this Agreement is terminated upon written notice as described in
                paragraphs 3.1, 10.1.1, 10.1.2, and 10.1.3 hereof, the Employer shall
                pay
                to the Employee to the end of the notice period his salary and at
                the end
                of the date terminating the notice provision, the Employer shall
                pay to
                the Employee vacation pay equivalent and any other monies due under
                applicable United States federal or state law, as well as any and
                all
                amounts to which he may be entitled pursuant to sections 10.1.2 or
                10.1.3.
                

            

    

    

    
      	
              12.

            	
              MEDIATION/ARBITRATION

            

    

    
      	 	 	 	
              12.1

            	
              Should
                any dispute or disagreement of any kind arise at any time; (i) regarding
                the rights and liabilities of the Parties hereof or with respect
                to the
                interpretation, validity, construction, meaning, performance, effect
                or
                application of this Agreement, as amended from time to time; or (ii)
                between the Employer and the Employee, the Parties agree that good
                faith
                negotiations shall take place between the Employer and the Employee.
                If
                such good faith negotiations have not resolved the dispute or disagreement
                within a reasonable period of time, either Party may request mediation
                between the Parties, or either Party may refer the dispute or disagreement
                directly to arbitration without going to
                mediation.

            

    

    

    
      	 	 	 	
              12.2

            	
              The
                mediator shall be agreed upon by the both Parties. In the event that
                the
                Parties are unable to agree upon the mediator, the dispute or disagreement
                shall be referred to arbitration in accordance with this
                section.

            

    

    

    
      	 	 	 	
              12.3

            	
              All
                discussions before the mediator shall be non-binding, confidential
                and
                without prejudice to the position of either Party. The Parties agree
                that
                if the mediation process does not result in a satisfactory solution
                of the
                dispute or disagreement after the lesser of either; (a) ten (10)
                hours of
                mediation, or (b) thirty (30) days from the commencement of the mediation,
                then either Party may refer the dispute or disagreement to arbitration
                pursuant to the provisions of the American
                Arbitration Association's National Rules for the Resolution of Employment
                Disputes in effect at the time of the arbitration demand,
                in
                accordance with the following:

            

    

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    
      	 	 	 	12.3.1	the reference to arbitration shall be to one (1)
              arbitrator. 

      	 	 	 	 	 

      	 	 	 	
              12.3.2

            	
              any
                such arbitration shall be held in the city of Orlando, Florida. The
                arbitration shall be completely private. The Employer agrees to reimburse
                the Employee for reasonable travel and expenses for all arbitration
                related travel. The arbitrator shall fix the appropriate procedures
                which
                may include discovery, an oral hearing(s) and any other procedures
                the
                arbitrator deems appropriate. The issue or issues to be decided by
                the
                arbitrator shall be defined in an arbitration agreement filed on
                consent
                by the aggrieved party. In the event the Parties to the arbitration
                shall
                be unable to agree upon the issue or issues to be decided by the
                arbitrator in any arbitration pursuant to this paragraph, the arbitrator
                shall have jurisdiction to determine the issue or issues to be so
                decided.
                The Parties shall do all such acts and things as are necessary to
                enable
                the arbitrator to make a proper finding respecting the matters in
                issue.
                The arbitrator may order interest on any award and the arbitrator
                may
                award costs, including attorneys’ fees, to either Party, provided that
                such award is permitted by the applicable law governing the underlying
                claim. In the absence of any award of costs, each of the Parties
                shall
                bear their own costs, including attorneys’ fees, of any arbitration
                pursuant to this paragraph and one-half of the cost of the arbitrator.
                The
                arbitrator shall be strictly bound by applicable legal principles
                and the
                general nature of this Agreement in rendering his/her/its
                decision.

            

    

    

    
      	 	 	 	
              12.3.3

            	
              The
                Parties agree that good faith negotiations, mediation and arbitration
                shall all be without recourse to the Courts. The award of the arbitrator
                shall be final and binding, except that either Party may appeal an
                arbitration award to the Courts on a question of law. Judgment upon
                the
                award rendered by the arbitrator may be entered in any Court having
                jurisdiction. 

            

    

    

    
      	
              13.

            	
              RIGHT
                TO INJUNCTIVE RELIEF

            

      	 	As a violation by the Employee of the provisions
              of
              paragraphs 7 and 9 hereof could cause irreparable injury to the Employer
              and there is no adequate remedy at law for such violation, the Employer
              shall have the right, in addition to any other remedies available to
              it at
              law or in equity, to enjoin the Employee in a court of equity from
              violating such provisions. The provisions of paragraphs 7 and 9 hereof
              shall survive the termination of this
              Agreement.

    

     

    
      	
              14.

            	
              ASSIGNMENT
                OF RIGHTS

            

    

    
      	 	
              The rights and obligations which
                accrue to
                the Employer under this Agreement shall automatically inure to the
                benefit
                of and be binding on its successors and assigns, whether by operation
                of
                law or otherwise. The rights of the Employee under this Agreement
                are not
                assignable or transferable in any manner, except that any accrued
                salary
                or bonus, vested options or other benefits shall be provided to the
                Employee’s heirs, beneficiaries or estate, or trustee under any trust set
                up by and for Employee.

            

    

    
      	 	 

    

    
      	15.	CHANGE OF
              CONTROL

    

    
      	 	
              The Employer agrees that should
                there be a
                change in control of the Employer during the Employee’s employment with
                the Employer or within 90 days after Employee’s employment is terminated
                without cause, all unvested stock options, RSU’s and restricted stock held
                by the Employee shall become immediately vested and exercisable in
                full
                and the Employee will be permitted to exercise vested options and
                RSU’s
                for 12 months following change of control. The Employer further
                agrees If, within 90 days before or 18 months following a change
                of control, the Employee’s employment is terminated for any reason except
                for cause or the Employee resigns for good reason as defined in section
                10.1.2, the Employee shall receive payment equal to (i) twelve (12)
                months
                salary and 100% of his target bonus for the year of termination at
                the
                rate in effect on the Employee’s termination date; (ii) the value of
                twelve (12) months of benefits and entitlements the Employee was
                enjoying
                as of his termination date (including but not limited to the cost
                to
                Employee to pay for twelve (12) months of COBRA payments for health
                and
                dental (if any) family insurance coverage); and (iii) all salary,
                benefits
                and entitlements to which the Employee is entitled in accordance
                with any
                relevant statute or law. The payment representing this aggregate
                amount
                shall be paid within thirty (30) days from notice provided herein.
                For the
                purposes of this section, “change in control” shall be defined as such
                term is defined the Employer’s 2002 Amended and Restated Stock Option
                Plan.

            

    

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    
      	16.	RESIDENCE

    

    
      	 	 

      	17.	INDEMNIFICATION

      	 	
              The Employer agrees to fully
                indemnify and
                defend the Employee against all claims, liabilities, costs, attorneys’
                fees, settlement payments and damages relating to or arising from
                any
                threatened or actual legal action against the Employee by the company
                with
                which the Employee was last employed before the date hereof, in relation
                in any manner to section 7 of the Employee’s prior employment agreement
                with such company. Employer shall also maintain in force at least
                $5,000,000 of directors and officers liability insurance with Employee
                as
                a named insured.

            

    

     

    
      	
              18.

            	
              CURRENCY

            

      	 	All dollar amounts referred to in this Agreement
              are in
              United States funds.

    

     

    
      	
              19.

            	
              AMENDMENT
                OF AGREEMENT

            

      	 	This Agreement may be altered or amended at any
              time by
              the mutual consent in writing of the parties
              hereto.

    

     

    
      	
              20.

            	
              TIME
                OF ESSENCE

            

      	 	Time shall be of the essence
              hereof.

    

     

    
      	
              21.

            	
              GOVERNING
                LAW

            

      	 	This Agreement shall be governed by and construed
              in
              accordance with the laws of the Province of
              Ontario.

    

     

    
      	
              22.

            	
              HEADINGS

            

      	 	The headings appearing throughout this Agreement
              are
              inserted for convenience only and form no part of the
              Agreement.

    

     

    
      	
              23.

            	
              SEVERABILITY

            

      	 	
              The invalidity or unenforceability
                of any
                provision of this Agreement will not affect the validity or enforceability
                of any other provision hereof and any such invalid or unenforceable
                provision will be deemed to be
                severable.

            

    

     

    
      	
              24.

            	
              ENTIRE
                AGREEMENT

            

      	 	
              This Agreement constitutes the
                entire
                agreement between the parties and supersedes all prior and contemporaneous
                agreements, understandings and discussions, whether oral or written,
                and
                there are no other warranties, agreements or representations between
                the
                parties except as expressly set forth
                herein.

            

    

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    
      	
              25.

            	
              AGREEMENT
                BINDING

            

      	 	
              This Agreement shall inure to
                the benefit
                of and be binding upon the parties hereto and their respective personal
                representatives, executors, administrators, successors and
                assigns.

            

    

     

    
      	
              26.

            	
              INDEPENDENT
                LEGAL ADVICE

            

      	 	
              The Employee acknowledges that
                he has read
                and understands the Agreement and acknowledges that he has had the
                opportunity to obtain independent legal advice regarding the terms
                of the
                Agreement and their legal
                consequences.

            

    

     

    
      	27.	
              SURVIVAL 

            

      	 	
              In the event this Agreement terminates
                for
                any reason, sections 3.1, 7, 9, 10.1.2, 10.1.3, 11, 15 and 17 hereof
                shall
                survive to the extent necessary to give full effect to their terms.
                

            

    

     

    IN
      WITNESS WHEREOF
      this
      Agreement has been executed by the parties hereto as of the date first set
      forth
      above.

    

    SIGNED,
      SEALED & DELIVERED

     

    
      	 	 	 	 
	 	 	/s/ Deepak
              Gupta
	
              
Witness	 	
              
Deepak
              Gupta
	 	 	 	 
	 	 	 	 
	 	 	WORKSTREAM
              INC.
	 	 	 	 
	 	 	Per:	/s/ Michael Mullarkey
	 	 	 	
              
                
Michael
                Mullarkey

            
	 	 	Title:	Chairman
              & Chief Executive Officer 

    

     

     

    
      
        
        

      

      
        9EXHIBIT
      10.66

    

    EMPLOYMENT
      AGREEMENT

    

    THIS
      EMPLOYMENT AGREEMENT dated as of December 6, 2006 (as the same may be amended,
      restated, supplemented or otherwise modified from time to time hereafter, this
      “Agreement”), is entered into by and between Columbia
      Laboratories, Inc.,
      a
      Delaware corporation having its corporate offices at 354 Eisenhower Parkway,
      Livingston, New Jersey 07039 (the “Company”), and James Meer
      (“Executive”).

    

    WITNESSETH:

    

    WHEREAS,
      the Company wishes to employ Executive on the terms and conditions set forth
      in
      this Agreement; and

    

    WHEREAS,
      the Company and Executive desire to enter into this Agreement so the rights,
      duties, benefits, and obligations of each regarding Executive’s employment for
      and by the Company will be fully set forth under the terms and conditions stated
      within this Agreement;

    

    NOW
      THEREFORE, in consideration of the mutual promises and undertakings hereunder,
      and for other good and valuable consideration, the receipt and sufficiency
      of
      which are hereby acknowledged, the parties hereby agree as follows:

    

    1.    Term.
      The
      term of this Agreement shall commence on the date first written above and
      continue through March 31, 2008, unless this Agreement is earlier terminated
      in
      accordance with Section 6 or 8 hereof. The term shall be automatically extended
      without further action of either party for additional one-year periods, unless
      written notice of either party’s intention not to extend has been given to the
      other party hereto at least sixty (60) days prior to the expiration of the
      then
      effective term. 

    

    2.    Title;
      Duties.

    

    (a)   Executive
      shall be the Senior Vice President, Chief Financial Officer, and Treasurer
      of
      the Company. Executive will perform duties
      customarily associated with such position,
      including, but not limited to, duties relating to the management of the
      financial affairs of the Company and its affiliates, investor relations
      matters,
      and such
      other duties commensurate with the job description as
      may be
      assigned to him from time to time by the chief executive officer of the Company
      (the “Company CEO”). Executive
      shall be
      employed at the Company’s offices located in Livingston, New Jersey.
Executive
      will report to the Company CEO.

    

    (b)   Executive
      agrees to devote his
      entire business time and attention to the performance of his duties under this
      Agreement.
      He
      shall perform his duties to the best of his ability and shall use his best
      efforts to further the interests of the Company. Executive shall perform his
      duties and will be required to travel as reasonably necessary to perform the
      services required of him under this Agreement. Executive represents and warrants
      to the Company that he is able to enter into this Agreement and that his ability
      to enter into this Agreement and to fully
      perform his duties hereunder are not limited to or restricted by any agreements
      or understandings between Executive and any other person. For the purposes
      of
      this Agreement, the term “person” means any natural person, corporation,
      partnership, limited liability partnership, limited liability company, or any
      other entity of any nature. It shall not be a violation of this Agreement for
      Executive to serve on corporate boards or committees (it being agreed that
      in no
      event shall Executive serve on the board of directors or advisory board of
      more
      than two other corporations and the acceptance of any new directorship after
      the
      date hereof shall be subject to the approval of the Company (which shall not
      be
      unreasonably withheld), so long as such activities do not unreasonably interfere
      with the performance of Executive's responsibilities as an employee of the
      Company in accordance with this Agreement. Notwithstanding the foregoing, it
      is
      agreed and acknowledged that Executive presently serves on advisory boards
      of
      two other corporations,

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (c)   Executive
      will observe the reasonable rules, regulations, policies and/or procedures
      which
      the Company may now or hereafter establish governing the conduct of its
      business, except to the extent that any such rules, regulations, policies and/or
      procedures may be inconsistent with the terms of this Agreement, in which case
      the terms of this Agreement shall control.

    

    3.    Employment
      Contract.
      The
      Company and Executive acknowledge that the terms of his employment are set
      forth
      in this Agreement. If Executive’s employment terminates for any reason,
      Executive shall not be entitled to any payments, benefits, damages, award or
      compensation other than as provided in this Agreement, or as may otherwise
      be
      available in accordance with the Company’s established written plans and written
      policies at the time of termination.

    

    4    Compensation.

    

    (a)    Subject
      to tax withholdings and deductions to cover Executive contributions to, and
      payments under, applicable executive benefit and welfare plans and programs,
      the
      Company will pay Executive an annual base compensation of $260,000 per year
      to
      be paid in accordance with the Company’s normal payroll practices during the
      term of this Agreement (“Base Salary”). The Company’s Board of Directors (the
“Board”) or Compensation Committee of the Board (or any committee of the Board
      that shall replace such committee) shall review annually Executive’s
      compensation for increases during the term of this Agreement in
      conjunction with the Company’s regular review of the salaries of other executive
      level employees and in consultation with the Company CEO.
      At such
      time, the Company will consider (without any obligation to implement) upward
      adjustments to Executive’s compensation under this Agreement in a manner
      consistent with the Company’s practices in effect from time to time.

    

    (b)    In
      addition to Base Salary, Executive also will be eligible to receive an annual
      performance bonus as the Board or Compensation Committee of the Board (or any
      committee of the Board that shall replace such committee) shall, in its sole
      discretion, deem appropriate
      based
      upon the parameters and criteria contained in the Company’s bonus plan and in
      consultation with the Company CEO.
      He shall
      be eligible for a Target Annual Bonus of 35% of his Base Salary as then in
      effect. This bonus, if any, shall be paid to the Executive within seventy-five
      (75) days of the end of each calendar year.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (c)   Executive
      also shall be eligible in the sole discretion of the Board or the Compensation
      Committee of the Board (or any committee of the Board that shall replace such
      committee) to participate in the Company’s stock option plan as is from time to
      time in effect, subject to the terms and conditions of such plan. The
      Executive shall receive on his first day of employment with the Company an
      initial grant of 100,000 options to purchase shares of the Company’s stock which
      shares are to vest at the rate of one-quarter on each of the first four
      anniversaries of the grant date. The Executive shall receive on his first day
      of
      employment with the Company an initial grant of 10,000 restricted shares of
      the
      Company’s stock which shares are to vest upon the determination by the
      Compensation Committee of the Board that the Company has obtained analyst
      coverage by at least two independent
      or sell-side research providers to ensure that the Company has broader market
      awareness.

    

    5.    Benefits.
      

    

    (a)   Executive
      and
      Executive’s eligible dependents shall
      be
      eligible for all employee benefit programs (including any
      pension, 401K, group life insurance, group medical and dental, vision, and
      short-term and long-term disability policies, plans, and programs)
      generally available to other executive level employees of the Company during
      the
      term of this Agreement,
      in
      accordance with the terms of those benefit plans.

    

    (b)   Executive
      shall be entitled to accrue paid time off (“PTO”) during the term of this
      Agreement in accordance with the Company’s standard policy and in an amount
      commensurate with other executive
      level employees of the Company.

    

    (c)   In
      accordance with the policies of the Company in effect from time to time,
      Executive will be entitled to reimbursement for approved ordinary and necessary
      business expenses incurred by him during the term of this Agreement commensurate
      with other executive level employees of the Company.

     

    6.    Termination.
      

    

    (a)   Death.
      Executive’s employment shall terminate immediately upon his death.

    

    (b)   Disability.
      Executive’s employment shall terminate upon Executive having a “Disability.” For
      purposes of this Agreement, “Disability” means a determination by Company in
      accordance with applicable law that, as a result of a physical or mental
      illness, Executive is unable to perform the essential functions of his job
      with
      or without reasonable accommodation for a period of six (6) months.

    

    (c)   Termination
      by Company for Cause.
      Upon
      delivery of written notice of termination for “Cause” from Company to Executive,
      Executive’s employment shall terminate. Termination for “Cause” shall mean
      termination based on (i) Executive’s failure or refusal to perform, in any
      material respect, his duties faithfully and diligently in accordance with this
      Agreement; (ii) gross negligence, recklessness or malfeasance in the
      performance of Executive’s duties; (iii) Executive committing any criminal
      act; (iv) Executive committing any act of fraud or other material misconduct
      resulting or intending to result directly or indirectly in gain or personal
      enrichment at the expense of Company; (v) Executive willfully engaging in
      any conduct relating to the business of Company that could reasonably be
      expected to have a materially detrimental effect on the business or financial
      condition of the Company; (vi) misconduct which materially discredits or
      damages Company, or violates Company’s policies or procedures, after Company has
      notified Executive of the actions Company deems to constitute non-compliance;
      (vii) Executive materially breaches his obligations under Sections 9 and 10
      below, relating to confidential information, non-solicitation and
      non-competition. 

    

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    Termination
      for Cause pursuant to subsections (i), (ii), (iv), or (v) of this Paragraph
      (c)
      of Section 6 shall not take effect unless and until the Company complies with
      the provisions of this paragraph. Executive shall be given written notice by
      the
      Company of its intention to terminate him for Cause, stating in detail the
      particular act(s) or failure(s) to act that constitute the grounds on which
      the
      proposed termination for Cause is based. That written notice shall be given
      to
      Executive within ninety (90) days of the Company’s learning of such act(s) or
      failure(s) to act. Executive shall then have thirty (30) days after receipt
      of
      such written notice to cure such conduct, to the extent such cure is possible.
      If Executive fails to cure such conduct on or before the end of the thirty
      (30)
      day period, Executive shall be terminated for Cause. If Executive’s conduct is
      not curable, no notice need be given by the Company before terminating Executive
      for Cause.

    

    (d)    Resignation
      for Good Reason.
      Executive may terminate his employment with “Good Reason” (as defined below)
      upon no fewer than thirty (30) days prior written notice to the Company
      specifying the reason(s) for the termination. Upon receipt of Executive’s notice
      of intent to terminate his employment for Good Reason, Company shall have a
      right to cure the alleged breach or other conduct alleged by Executive to
      constitute Good Reason within the thirty (30) day period. For purposes of this
      Agreement, “Good Reason” means (i) Company materially breaches this
      Agreement; (ii) Company assigns duties to Executive which are materially
      inconsistent with his duties as set forth in Section 2 or which materially
      impair his ability to perform the services contemplated hereunder; or
      (iii) Company has, without Executive’s consent, relocated Executive’s
      office more than 100 miles from its location at the commencement of this
      Agreement
      or (iv)
      Company substantially reduces the Executive’s job title, responsibilities, or
      level of authority from that customary for the Senior Vice President, Chief
      Financial Officer, and Treasurer of a specialty pharmaceutical
      company.
      

    

    (e)    Resignation
      Without Good Reason.
      Executive may terminate his employment without Good Reason upon no fewer than
      thirty (30) days prior written notice to the Company. Without Good Reason as
      used in this Agreement refers to any reason not included as a Good Reason in
      section 6(d).

    

    (f)    Termination
      by Company Without Cause.
      Executive’s employment shall terminate thirty (30) days after written notice
      delivered to Executive of Company’s termination of Executive’s employment for
      reason other than Death, Disability or Cause.

    

    7.    Compensation
      Upon Termination (Other than a Change in Control)

    

    (a)    If
      Executive’s employment is terminated by Company for Cause, by Death or
      Disability, or if Executive resigns Without Good Reason, Executive shall be
      entitled to receive:

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    (i)    the
      Base
      Salary through the date of termination;

    

    (ii)   reimbursement
      for any previously unreimbursed business expenses properly incurred and
      documented by Executive in accordance with Company policy prior to the date
      of
      Executive’s termination; and

    

    (iii)         
      such
      Employee Benefits, if any, as to which Executive may be entitled under the
      employee benefit plans of the Company.

    

    (b)    If
      Executive’s Employment is terminated by Company without Cause or by Executive
      with Good Reason, Executive shall be entitled to:

    

    (i)    the
      Base
      Salary through the date of termination;

    

    (ii)   reimbursement
      for any previously unreimbursed business expenses properly incurred and
      documented by Executive in accordance with Company policy prior to the date
      of
      Executive’s termination;

    

    (iii)          receive
      a
      lump sum payment equal to (1) one times Executive’s Annual Base Salary at the
      rate immediately in effect before Executive’s Termination Date; and (2) the
      greater of (A) the cash bonus paid to Executive in the preceding year pursuant
      to the
      Company’s bonus plan or
      (B)
      the Executive’s target bonus in effect at the time of the
      termination.

    

    (iv)         for
      a
      period of twelve (12) months following his Termination Date, continue to receive
      the medical and dental coverage in effect on his Termination Date (or generally
      comparable coverage) for himself and, where applicable, his spouse and
      dependents, as the same may be changed from time to time for employees
      generally, as if Executive had continued in employment during such period;
      or,
      as an alternative, the Company may elect to pay Executive cash in lieu of such
      coverage in an amount equal to Executive’s after-tax cost of continuing such
      coverage, where such coverage may not be continued (or where such continuation
      would adversely affect the tax status of the plan pursuant to which the coverage
      is provided). The COBRA health care continuation coverage period under Section
      4980B of the Code, shall run concurrently with the foregoing twelve (12) month
      benefit period. 

    

    (c)    If
      Executive’s Employment is terminated as a result of Company providing written
      notice to Executive pursuant to Section 1 of this Agreement of Company’s
      intention not to extend the term of the Agreement, Executive shall be entitled
      to:

    

    (i)    the
      Base
      Salary through the end of the term;

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    (ii)   reimbursement
      for any previously unreimbursed business expenses properly incurred and
      documented by Executive in accordance with Company policy prior to the end
      of
      the term;

    

    (iii)          receive
      a
      lump sum payment equal to (1) one times Executive’s Annual Base Salary at the
      rate immediately in effect before the end of the term.

    

    8.    Change
      in Control.

    

    (a)   In
      the
      event of “Change in Control” of Company, as defined in the Executive Change in
      Control Severance Agreement to be executed on the date hereof (the “Change in
      Control Agreement”) between the Company and Executive and attached hereto as
      Exhibit A and incorporated
      by reference as if fully set forth herein,
      Executive shall be entitled solely to the benefits, if any, available to him
      pursuant to the Change in Control Agreement, and the benefits otherwise
      available under this Agreement shall not apply. 

    

    9.    Restrictive
      Covenants.
      

    

    (a)    During
      Executive’s employment and for a period of one (1) year following the
      termination of Executive’s employment for any reason, Executive will not compete
      directly with the Company anywhere in the world by rendering services or
      providing assistance for himself or on behalf of any other person or entity,
      in
      any line of business
      substantially similar to, or competitive with, the business
      in which
      the Company is engaged or has made preparations to engage, as of the termination
      date of Executive’s employment with the Company. 

    

    (b)    Executive
      agrees that during the period stated in subsection (a) above, he will not
      (i) directly solicit or encourage in any manner the resignation of any
      employee of the Company or any of its subsidiaries; or (ii) directly or
      indirectly solicit or divert customers, vendors, or business of the Company
      or
      any of its subsidiaries (provided
      that
      Executive may deal with any such customers or vendors in any manner which does
      not violate the provisions of subsection (a) above); or (iii) attempt to
      influence, directly or indirectly, any person or entity to cease, reduce, alter,
      or rearrange any business relationship with the Company or any of its
      subsidiaries.

    

    (c)    Executive
      acknowledges and agrees that he considers the restrictions set forth in this
      Section 9 to be reasonable both individually and in the aggregate and that
      the
      duration, geographic scope, extent and application of these restrictions are
      no
      greater than is necessary for the protection of the Company’s legitimate
      interests. It is the desire and intent of Executive and the Company that the
      provisions of this Section 9 shall be enforced to the fullest extent possible
      under the laws and public policies of the State of New Jersey. The Company
      and
      Executive further agree that if any particular provision or portion of this
      Section 9 shall be adjudicated to be invalid or unenforceable, such adjudication
      shall apply only with respect to the operation of such provision in the
      particular jurisdiction in which such adjudication is made. The Company and
      Executive further agree that in the event that any restriction herein shall
      be
      found to be void or unenforceable but would be valid or enforceable if some
      part
      or parts thereof were deleted or the period or area of application reduced,
      such
      restriction shall apply with modification as may be necessary to make it valid
      and Executive and the Company empower a court of competent jurisdiction to
      modify, reduce or otherwise reform such provision(s) in such fashion as to
      carry
      out the parties’ intent to grant the Company the maximum allowable protection
      consistent with the applicable law and facts and the express exceptions
      contained herein.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    (d)    Without
      limiting the foregoing, Executive will not be deemed to be in competition with
      the Company by reason of his employment by an enterprise (“Subsequent Employer”)
      whose businesses include both (i) activities that involve the Company
      Technology (“Covered Business”); and (ii) activities that do not involve
      the Company Technology (“Excluded Business”) upon satisfaction of the following
      conditions: (A) Executive delivers to the Subsequent Employer a copy of
      this Agreement or an extract thereof setting forth fully and completely the
      restrictions set forth in this Section 9; (B) the Subsequent Employer
      executes and delivers to the Company a written agreement in which, as a
      condition to Executive’s employment, the Subsequent Employer
      (1) acknowledges receipt of such restriction, (2) agrees to employ
      Executive only in the Excluded Business, (3) agrees to cause the executive
      in charge of the Covered Business to acknowledge such restrictions in writing
      and agree that Executive will not be permitted to participate in the Covered
      Business, (4) agrees to establish reasonable internal policies and
      procedures to prevent violation of such restrictions or disclosure by Executive
      to personnel engaged in the Covered Business, and (5) agrees that the
      Company shall be entitled to enforce such agreement directly against the
      Subsequent Employer; and (C) Executive and the Subsequent Employer perform
      their obligations pursuant to this Agreement and such agreement.

    

    10.    Confidentiality.
      The
      Employee Proprietary Information and Inventions Agreement to be executed on
      the
      date hereof, between
      the Company and Executive and attached hereto as Exhibit B and incorporated
      by
      reference as if fully set forth herein.

    

    11.    Cooperation:
      Executive agrees to cooperate on a reasonable basis in the truthful and honest
      prosecution and/or defense of any claim in which the Company, its affiliates,
      and/or its subsidiaries may have an interest (subject to reasonable limitations
      concerning time and place), which may include without limitation making himself
      available on a mutually agreed, reasonable basis to participate in any
      proceeding involving the Company, its affiliates, and/or its subsidiaries,
      allowing himself to be interviewed by representatives of the Company, its
      affiliates, and/or its subsidiaries without asserting or claiming any privilege
      against the Company, its affiliates, and/or its subsidiaries, appearing for
      depositions and testimony without requiring a subpoena and without asserting
      or
      claiming any privilege against the Company, its affiliates, and/or its
      subsidiaries, and producing and/or providing any documents or names of other
      persons with relevant information without asserting or claiming any privilege
      against the Company, its affiliates, and/or its subsidiaries; provided that,
      if
      such services are required after the end of any period during which he is
      eligible for severance benefits, if any, the Company, its affiliates, and/or
      its
      subsidiaries shall provide Executive with reasonable compensation for the time
      actually expended in such endeavors and shall pay his reasonable expenses
      incurred at the prior and specific request of the Company, its affiliates,
      and/or its subsidiaries.

    

    12.    Remedies.
      Executive acknowledges and agrees that the Company’s remedy at law for a breach
      or threatened breach of the provisions of this Agreement would be inadequate
      and, in recognition of this fact, in the event of a breach or threatened breach
      by Executive of any provision of this Agreement, it is agreed that, in addition
      to any available remedy at law, the Company shall be entitled to, without
      posting any bond, specific performance, temporary restraining order, temporary
      or permanent injunction, or any other equitable relief or remedy which may
      then
      be available; provided, however, nothing herein shall be deemed to relieve
      the
      Company of its burden to prove grounds warranting such relief nor preclude
      Executive from contesting such grounds or facts in support thereof. Nothing
      herein contained shall be construed as prohibiting the Company from pursuing
      any
      other remedies available to it for such breach or threatened breach
      hereof.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    13.    Applicable
      Laws and Consent to Jurisdiction.
      The
      validity, construction, interpretation, and enforceability of this Agreement
      shall be determined and governed by the laws of the State of New Jersey without
      giving effect to the principles of conflicts of law. For the purpose of
      litigating any dispute that arises under this Agreement, the parties hereby
      consent to exclusive jurisdiction of, and agree that such litigation shall
      be
      conducted in, any state or federal court located in the State of New
      Jersey.

    

    14.    Severability.
      The
      provisions of this Agreement are severable and if any one or more provisions
      are
      determined to be illegal or otherwise unenforceable, in whole or in part, the
      remaining provisions shall nevertheless be binding and enforceable. The Parties
      agree that the covenants set forth herein are reasonable. Without
      limiting the foregoing, it is the intent of the parties that the covenants
      set
      forth herein be enforced to the maximum degree permitted by applicable law.
      As
      such, the
      parties ask that if any court of competent jurisdiction were to consider any
      provision of this Agreement to be overly broad based on the circumstances at
      the
      time enforcement is requested, that such court “blue pencil” the provision and
      enforce the provision to the full extent that such court deems it to be
      reasonable in scope.  

    

    15.    Indemnification. The
      Indemnification Agreement executed on the date hereof, between
      the Company and Executive, is attached hereto as Exhibit C and incorporated
      by
      reference as if fully set forth herein.

    

    16.    Miscellaneous;
      Waiver.
      Executive further agrees that this Agreement, together with the Exhibits
      incorporated by reference as if fully set forth herein, sets forth the entire
      employment agreement between the Company and Executive, supersedes any and
      all
      prior agreements between the Company and Executive, and shall not be amended
      or
      added to except in writing signed by the Company and Executive. Executive
      understands that he may not assign his duties and obligations under this
      Agreement to any other party and that the Company may, at any time and without
      further action by or the consent of Executive, assign this Agreement to any
      of
      its affiliated companies. 

    

    17.    Counterparts.
      This
      Agreement may be executed in any number of counterparts, each of which shall
      be
      deemed an original and all of which taken together shall constitute one and
      the
      same agreement.

    

    18.    Successors
      and Assigns.
      This
      Agreement shall be binding on the successors and heirs of Executive and shall
      inure to the benefit of the successors and assigns of the Company.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    19.    Notices.
      Any
      notice required or permitted hereunder shall be in writing and shall be
      sufficiently given if personally delivered or if sent by registered or certified
      mail, postage prepaid, with return receipt requested, addressed: (a) in the
      case
      of the Company, to Columbia Laboratories, Inc., 354 Eisenhower Parkway,
      Livingston, New Jersey 07039, attn.: General Counsel, and (b) in the case of
      Executive, to Executive's last known address as reflected in the Company's
      records, or to such other address as Executive shall designate by written notice
      to the Company. Any notice given hereunder shall be deemed given at the time
      of
      receipt thereof by the person to whom such notice is given.

    
 

    IN
      WITNESS WHEREOF, the parties have executed this Agreement as of the dates set
      forth below.

    
 

    
      	
              EXECUTIVE 

               

              /S/ James
                Meer                                     
                

              James Meer

              Date: December
                6,
                2006                       
                

            	
              COLUMBIA LABORATORIES, INC. 

               

              /S/
                Stephen G.
                Kasnet                                     
                

              Stephen G. Kasnet, Chairman

              Date: December
                6,
                2006                                   
                

            

    

    

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

               

    Exhibit
      A

    

    EXECUTIVE
      CHANGE OF CONTROL SEVERANCE AGREEMENT

    

    THIS
      EXECUTIVE CHANGE IN CONTROL SEVERANCE AGREEMENT dated as of December 6, 2006
      (as
      the same may be amended, restated, supplemented or otherwise modified from
      time
      to time hereafter, this “Agreement”), is entered into between Columbia
      Laboratories, Inc.,
      a
      Delaware corporation having its corporate offices at 364 Eisenhower Parkway,
      Livingston, New Jersey (“Columbia”
      or the
      “Company”), and James Meer (“Executive”).

    

    WITNESSETH:

    

    WHEREAS,
      the Company desires to create a greater incentive for Executive to remain in
      the
      employ of the Company, particularly in the event of any possible change or
      threatened change in control of the Company; and

    

    NOW
      THEREFORE, in partial consideration of Executive’s future services to the
      Company and the mutual covenants contained herein, the parties hereby agree
      as
      follows:

    

    1.    Termination
      Following A Change in Control

    

    (a)   Qualifying
      Termination.
      Executive shall be entitled to the compensation and benefits listed in Paragraph
      1(b), in addition to compensation and benefits to which Executive would
      otherwise be entitled as of the date of termination, if Executive’s employment
      with the Company is terminated either (i) by the Company for any reason other
      than for Cause or (ii) by Executive for Good Reason, in each case within
90
      days
      before a Change in Control or within one
      year
      following the occurrence of any Change in Control or successive Change of
      Control that occurs and Executive properly executes, and does not revoke or
      attempt to revoke, a valid and reasonable release of claims against the Company,
      its affiliates and their employees and agents. 

    

    (b)   Compensation
      and Benefits.
      Within
      ten business days after a Qualified Event (or the last day of any period during
      which any release may be revoked by Executive), the Company shall make a lump
      sum cash payment to Executive, subject to any mandatory tax withholding, equal
      to one times Executive’s Base Salary and Bonus for the year prior to the Change
      in Control plus a lump sum payment equal to the value of the Fringe Benefits
      provided to Executive for the year prior to the Change in Control.

    

    2.    Definitions.
      

    

    (a)   Bonus.
“Bonus”
      shall mean the greater of (i) the bonus, if any, paid to Executive in the year
      prior to the Qualifying Termination, (ii) the bonus, if any, paid to Executive
      in the year prior to the Change in Control, or (iii) the Executive’s target
      bonus at the time of the Change in Control.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    (b)   Base
      Salary.
       “Base
      Salary” shall mean the greater of (i) the annual rate of base salary in effect
      for Executive at the time of the Qualifying Termination or (ii) the annual
      rate
      of base salary in effect for Executive at the time of the Change in
      Control.

    

    (c)   Cause.
“Cause”
      shall mean termination based on (i) gross negligence, recklessness or
      malfeasance in the performance of Executive’s duties; (ii) Executive
      committing any criminal act; (iii) Executive committing any act of fraud or
      other material misconduct resulting or intending to result directly or
      indirectly in gain or personal enrichment at the expense of Company;
      (iv) Executive willfully engaging in any conduct relating to the business
      of Company that could reasonably be expected to have a materially detrimental
      effect on the business or financial condition of the Company;
      (v) misconduct which materially discredits or damages Company, or violates
      Company’s policies or procedures, after Company has notified Executive of the
      actions Company deems to constitute non-compliance; (vi) Executive
      materially breaches Executive’s obligations relating to confidential
      information, non-solicitation and non-competition.

    

    (d)   Change
      In Control. “Change
      in Control” shall have occurred if (a) there shall have consummated
      (i) any consolidation or merger of Company in which Company is not the
      continuing or surviving entity or pursuant to which shares of Company’s common
      stock would be converted to cash, securities or other property, other than
      a
      merger of Company in which the holders of Company’s common stock immediately
      prior to the merger have the same proportionate ownership of common stock of
      the
      surviving entity immediately after the merger, or (ii) any sale, lease,
      exchange or transfer (in one transaction or a series of related transactions)
      of
      all, or substantially all, of the assets of the company; or (b) the
      stockholders of the Company approve a plan or proposal for the liquidation
      or
      dissolution of the Company; or (c) any person (as that term is used in
      Sections 13(d) and 14(d)(z) of the Securities and Exchange Act, as amended
      (the
“Exchange Act”)) shall become a beneficial owner (within the meaning of Rule
      13d-2 under the Exchange Act) of 40% or more of Company’s outstanding common
      stock; or (d) during any period of two consecutive years, individuals who
      at the beginning of such period constitute the entire Board shall cease for
      any
      reason to constitute a majority thereof unless the election, or the nomination
      for election by Company’s stockholders, of each new director was approved by a
      vote of at least 60% of the directors eligible to vote who were directors at
      the
      beginning of the period.

    

    (e)    Good
      Reason.
“Good
      Reason” means (i) a material reduction in Executive’s level of duties or
      responsibilities or the nature of Executive’s functions; (ii) a reduction in
      Executive’s Base Salary; or (ii) Company has, without Executive’s consent,
      relocated Executive’s office more than 100 miles from its location at the
      commencement of this Agreement. 

    

    3.    Applicable
      Laws and Consent to Jurisdiction.
      The
      validity, construction, interpretation, and enforceability of this Agreement
      shall be determined and governed by the laws of the State of New Jersey without
      giving effect to the principles of conflicts of law. For the purpose of
      litigating any dispute that arises under this Agreement, the parties hereby
      consent to exclusive jurisdiction of, and agree that such litigation shall
      be
      conducted in, any state or federal court located in the State of New
      Jersey.

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    4.    Severability.
      The
      provisions of this Agreement are severable and if any one or more provisions
      are
      determined to be illegal or otherwise unenforceable, in whole or in part, the
      remaining provisions shall nevertheless be binding and enforceable.

    

    6.    Miscellaneous;
      Waiver.
      Executive further agrees that this Agreement sets forth the entire Agreement
      between the Company and Executive with respect to the subject matter herein,
      supersedes any and all prior agreements between the Company and Executive with
      respect to the subject matter herein, and shall not be amended or added to
      except in writing signed by the Company and Executive. Executive understands
      that Executive may not assign Executive’s duties and obligations under this
      Agreement to any other party and that the Company may, at any time and without
      further action by or the consent of Executive, assign this Agreement to any
      of
      its affiliated companies. 

    

    6.    Counterparts.
      This
      Agreement may be executed in any number of counterparts, each of which shall
      be
      deemed an original and all of which taken together shall constitute one and
      the
      same agreement.

    

    7.    Successors
      and Assigns.
      This
      Agreement shall be binding on the successors and heirs of Executive and shall
      inure to the benefit of the successors and assigns of the Company.

    

    8.    Notices.
      Any
      notice required or permitted hereunder shall be in writing and shall be
      sufficiently given if personally delivered or if sent by registered or certified
      mail, postage prepaid, with return receipt requested, addressed: (a) in the
      case
      of the Company, to Columbia Laboratories, Inc., 364 Eisenhower Parkway,
      Livingston, New Jersey, attn.: General Counsel, and (b) in the case of
      Executive, to Executive's last known address as reflected in the Company's
      records, or to such other address as Executive shall designate by written notice
      to the Company. Any notice given hereunder shall be deemed given at the time
      of
      receipt thereof by the person to whom such notice is given.

     

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

    

    
      	
              EXECUTIVE

               

              /S/ James
                Meer                           
                

              James Meer

               

               

            	
              COLUMBIA LABORATORIES, INC.

               

              /S/
                Robert S.
                Mills                                              
                

              By:  Robert
                S. Mills

              Its:  President
                and Chief
                Executive Officer

            

    

      

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    Exhibit
      B

    

    EMPLOYEE
      PROPRIETARY INFORMATION

    AND
      INVENTIONS AGREEMENT

    

    

    This
      Employee Proprietary Information and Inventions Agreement (the "Agreement")
      is
      made as of December 6, 2006, between James
      Meer
      (referred to below as “I”, “My”, “Myself”, or “Me”) and Columbia Laboratories,
      Inc., having an office at 364 Eisenhower Parkway, Livingston, NJ 07039 (referred
      to below together with its subsidiaries and affiliates as the
      "Company").

     

    RECITALS

    

    A.   The
      Company is engaged in a continuous program of research, development, production,
      distribution, and marketing with respect to its present and future business;
      and

    

    B.    I
      understand that My employment with the Company creates a relationship of
      confidence and trust between the Company and Me with respect to any information:
      (a) applicable to the business of the Company, or (b) applicable to the business
      of any client or customer of the Company, that may be made known to Me by the
      Company, any client or customer of the Company, or learned by Me during the
      period of My employment. I understand that this information constitutes a very
      valuable asset of the Company.

    

    NOW,
      THEREFORE, in consideration of My employment by the Company and the salary
      and
      other employee benefits I will receive from the Company for My service, which
      in
      all cases are subject to Section 10(a) of this Agreement, I hereby agree as
      follows:

    

    1.    Proprietary
      Information.
      The
      Company possesses and will come to possess information that has been created,
      discovered or developed, or has otherwise become known to the Company (including
      without limitation, information created, discovered, developed or made known
      by
      or to Me arising out of My employment by the Company), and/or in which property
      rights have been assigned or otherwise conveyed to the Company, which
      information has commercial value in the business in which the Company is
      engaged. All of the aforementioned information is hereinafter called
      "Proprietary Information." Any information disclosed to Me or to which I have
      access (whether I or others originated it) during the time I am employed by
      the
      Company, that the Company or I reasonably consider Proprietary Information
      or
      that the Company treats as Proprietary Information, will be presumed to be
      Proprietary Information.

    

    By
      way of
      illustration, but not limitation, Proprietary Information includes trade
      secrets, processes, formulae, data and know-how, improvements, inventions,
      techniques, marketing plans, strategies, forecasts, customer lists, and finance
      and business systems.

    

    (a)    Company
      as Sole Owner.
      I agree
      and acknowledge that all Proprietary Information, and all Inventions (defined
      below in Section 6(a) of this Agreement), shall be the sole property of the
      Company and its assigns, and the Company and its assigns shall be the sole
      owner
      of all patents and trade secrets and any other rights in connection
      therewith.

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    (b)   Assignment
      of Rights; Obligation of Confidentiality.
      I
      hereby assign to the Company any rights I may have or acquire in all Proprietary
      Information. At all times during My employment by the Company and at all times
      after termination of such employment, I will keep in confidence and trust all
      Proprietary Information and, except as I may be authorized to make disclosure
      in
      the ordinary course of performing My duties as an employee of the Company,
      I
      will not disclose, sell, use, lecture upon or publish any Proprietary
      Information or anything relating to it without the prior written consent of
      the
      Company.

    

    2.    No
      Competition.
      I agree
      that during the period of My employment by the Company I will not, without
      the
      Company's prior written consent, engage in any employment or other activity
      for
      any person, company or entity engaged in any business that is competitive with
      the Company's business.

    

    3.    Other
      Proprietary Rights.
      All
      documents, data, records, apparatus, equipment, chemicals, molecules, organisms,
      and other physical property, whether or not pertaining to Proprietary
      Information, furnished to Me by the Company or produced by Me or others in
      connection with My employment shall be and remain the sole property of the
      Company and shall be returned promptly to the Company as and when requested
      by
      the Company. Should the Company not so request, I shall return and deliver
      all
      such property upon termination of My employment by Me or the Company for any
      reason and I will not take with Me any such property or any reproduction of
      such
      property upon such termination.

    

    4.    No
      Solicitation.
      I agree
      that for a period of one (1) year following termination of My employment, I
      will
      not solicit or in any manner encourage any employee of the Company to leave
      the
      Company's employ.

    

    6.    Obligations
      Regarding Inventions.

    

    (a)    I
      will
      promptly disclose to the Company, or any persons designated by it, and will
      not
      use Myself or disclose to anyone else at any time during or after My employment
      without the prior written consent of the Company, all improvements, inventions,
      formulae, processes, techniques, know-how and data (whether or not they can
      be
      patented, trademarked or copyrighted), made, conceived, reduced to practice
      or
      learned by Me, either alone or jointly with others, during the period of My
      employment, which are related to or useful in the business of the Company,
      or
      which the Company would be interested in, or result from tasks assigned to
      Me by
      the Company, or result from use of any premises owned, leased or contracted
      for
      by the Company (all said improvements, inventions, formulae, processes,
      techniques, know-how, and data initiated or developed during My employment
      shall
      be collectively hereinafter called "Inventions"); such disclosure shall continue
      after termination of My employment with the Company with respect to any
      Invention, which in all cases are subject to Section 6(c) of this
      Agreement.

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

     

    (b)   Company
      Sole Owner of Patent Rights.
      I will
      promptly and fully disclose the existence and describe the nature of any such
      Invention to the Company in writing and without request. I agree that all
      Inventions shall be the sole property of the Company and its assigns, and the
      Company and its assigns shall be the sole owner of all patents, copyrights,
      trade secrets, and other intellectual property rights (collectively, "Patent
      Rights") in connection therewith. I will, with respect to any such Invention,
      keep current, accurate and complete records that will belong to the Company
      and
      will be kept stored on the Company premises while I am employed by the Company
      and shall be turned over to the Company immediately upon termination of My
      employment. 

    

    (c)   Assignment
      of Inventions and Patent Rights; Duty to Cooperate.
      I
      hereby assign to the Company any rights I may have or acquire in all Inventions.
      I further agree as to all Inventions and Proprietary Information to assist
      the
      Company in every proper way (but at the Company's expense) to obtain and from
      time to time enforce Patent Rights regarding the Inventions or Proprietary
      Information in any and all countries, and to that end I will execute all
      documents for use in applying for and obtaining such patents or copyrights
      thereon and enforcing same, as the Company may desire, together with any
      assignments thereof to the Company or entities or persons designated by it.
      I
      agree further that these obligations to assist the Company in obtaining and
      enforcing Patent Rights in any and all countries shall continue beyond the
      termination of My employment, in return for which assistance after termination
      the Company shall compensate Me at a reasonable rate for time actually spent
      by
      Me at the Company's request on such assistance.

    

    6.    Prior
      Inventions List.
      [Please
      initial one of the following two entries.]

    

    _____
      As
      a matter of record, I have attached hereto a complete list of all inventions
      or
      improvements relevant to the subject matter of My employment by the Company
      which have been made or conceived or first reduced to practice by Me alone
      or
      jointly with others prior to My employment by the Company which I desire to
      remove from the operation of this Agreement; and I warrant that such list is
      complete. 

    

       
      X      No such list is attached to this
      Agreement, and I represent that I have made no such inventions or improvements
      at the time of signing this Agreement.

    

    7.    No
      Breach of Confidentiality.
      I
      represent that My performance of all terms of this Agreement and that My
      employment by the Company does not and will not breach any obligation of
      confidentiality that I have to others, which existed prior to My employment
      by
      the Company. I have not brought or used, and will not bring with Me to the
      Company or use any equipment, supplies, facility or trade secret information
      of
      any former employer or any other person, which information is not generally
      available to the public, unless I have obtained written authorization for their
      possession and use, and promptly provided such written authorization to the
      Company. I have not entered into, and I agree I will not enter into, any
      agreement either written or oral in conflict with this Agreement.

    

    8.    Injunctive
      Relief.
      I
      acknowledge and agree that the Company’s remedy at law for a breach or
      threatened breach of any of the provisions of this Agreement would be inadequate
      and, in recognition of that fact, in the event of any such breach or threatened
      breach, I agree that, in addition to its remedy at law, the Company shall be
      entitled to equitable relief in the form of specific performance, temporary
      restraining order, temporary or permanent injunction or any other equitable
      remedy that may then be available. Nothing herein contained shall be construed
      as prohibiting the Company from pursuing any other remedies available to it
      for
      such breach or threatened breach.

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

     

    9.    Not
      Debarred.
      I
      warrant and represent that I have never been, and am not currently an individual
      who has been, debarred by the United States Food and Drug Administration (“FDA”)
      pursuant to 21 U.S.C. §336a (a) or (b) (“Debarred Individual”) from providing
      services in any capacity to a person that has an approved or pending drug
      product application. I further warrant and represent that I have no knowledge
      of
      any FDA investigations of, or debarment proceedings against, Me or any person
      or
      entity with which I am, or have been, associated, and I will immediately notify
      the Company if I become aware of any such investigations or proceedings during
      the term of My employment with the Company.

     

    10.    Miscellaneous
      Provisions.

    

    (a)    Employment.
      Nothing
      in this Agreement shall alter My at will employee status or be construed to
      create a specific term of employment or a promise of continued employment.
      Either I or the Company may terminate the employment relationship for any reason
      at any time, with or without notice.

    

    (b)    Enforceability.
      If one
      or more of the provisions contained in this Agreement shall, for any reason,
      be
      held to be excessively broad as to scope, activity, subject or otherwise, so
      as
      to be unenforceable at law, such provision or provisions shall be construed
      by
      the appropriate judicial body by limiting or reducing it or them, so as to
      be
      enforceable to the maximum extent compatible with then applicable law. If any
      provision of this Agreement shall be declared invalid, illegal or unenforceable,
      such provision shall be severed and all remaining provisions shall continue
      in
      full force and effect.

    

    (c)    Assignment.
      This
      Agreement is not assignable by Me without the written consent of the Company,
      which consent may be withheld for any reason or no reason. In light of the
      very
      personal and critical nature of this Agreement, I recognize that it is unlikely
      such consent would ever be granted.

    

    (d)    Entire
      Agreement.
      This
      Agreement contains the entire agreement between Me and the Company with respect
      to the subject matter of this Agreement and supersedes all prior or
      contemporaneous oral or written agreements, statements, representations, or
      understandings between Me and the Company, or any employee of the Company.
      This
      Agreement may be amended only by a written instrument signed by Me and the
      Company.

     

    (e)    Effective
      Date.
      This
      Agreement shall be effective as of the first day of My employment by the
      Company, as affirmed or reaffirmed by my signature below.

    

    (f)    Binding
      Effect.
      This
      Agreement shall be binding upon Me, My heirs, executors, assigns and
      administrators and shall inure to the benefit of the Company, its successors
      and
      assigns.

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

     

    (g)    Governing
      Law.
      This
      Agreement shall be governed by and construed in accordance with the laws of
      the
      State of New Jersey without regard to its rules on conflicts of
      law.

     

    
 

    
      	
              COLUMBIA LABORATORIES, INC.

               

              By: /S/
                Robert S.
                Mills                                             
                

               

              Name: Robert
                S.
                Mills                                              
                

               

              Title: President
                & Chief Executive
                Officer           
                 

            	
              EMPLOYEE

               

              /S/
                James
                Meer                                       
                

              Signature

               

               

              James
                Meer

            

    

       

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

     

    Exhibit
      C

    

    INDEMNIFICATION
      AGREEMENT

    

    This
      Agreement is made and entered into this 6th
      day of
      December, 2006 (“Agreement”) by and between Columbia Laboratories, Inc., a
      Delaware corporation (“Corporation”) and James Meer (“Indemnitee”).

    

    WHEREAS
      the Board of Directors (the “Board”) has determined that the best interests of
      the Corporation require that persons serving as directors of, and in other
      capacities for, the Corporation receive better protection from the risk of
      claims and actions against them arising out of their service to and activities
      on behalf of such corporations; and

    

    WHEREAS,
      this Agreement is a supplement to and in furtherance of Article VI of the
      amended and restated by-laws of the Corporation, any rights granted by the
      Certification of Incorporation of the Corporation and any resolutions adopted
      pursuant thereto and shall not be deemed to be a substitute therefore nor to
      diminish or abrogate any rights of the Indemnitee thereunder; and

    

    WHEREAS,
      Indemnitee is willing to serve, continue to serve and take on additional service
      for or on behalf of the Corporation on the condition that Indemnitee be
      indemnified according to the terms of this Agreement;

    

    NOW,
      THEREFORE, in consideration of the premises and the covenants contained herein,
      the Corporation and Indemnitee do hereby covenant and agree as
      follows:

    

    Section
      1. Definitions.

    

    For
      purposes of this Agreement:

    

    (a)    “Change
      in Control” shall
      be
      deemed to have occurred if (a) there shall have consummated (i) any
      consolidation or merger of Company in which Company is not the continuing or
      surviving entity or pursuant to which shares of Company’s common stock would be
      converted to cash, securities or other property, other than a merger of Company
      in which the holders of Company’s common stock immediately prior to the merger
      have the same proportionate ownership of common stock of the surviving entity
      immediately after the merger, or (ii) any sale, lease, exchange or transfer
      (in one transaction or a series of related transactions) of all, or
      substantially all, of the assets of the company; or (b) the stockholders of
      the Company approve a plan or proposal for the liquidation or dissolution of
      the
      Company; or (c) any person (as that term is used in Sections 13(d) and
      14(d)(z) of the Securities and Exchange Act, as amended (the “Exchange Act”))
      shall become a beneficial owner (within the meaning of Rule 13d-2 under the
      Exchange Act) of 40% or more of Company’s outstanding common stock; or
      (d) during any period of two consecutive years, individuals who at the
      beginning of such period constitute the entire Board shall cease for any reason
      to constitute a majority thereof unless the election, or the nomination for
      election by Company’s stockholders, of each new director was approved by a vote
      of at least 50% of the directors eligible to vote who were directors at the
      beginning of the period. 

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

     

    (b)    “Disinterested
      Director” means a director of the Corporation who is not and was not a party to
      the Proceeding in respect of which indemnification is sought by
      Indemnitee.

    

    (c)    “Effective
      Date” means the date first written above.

    

    (d)    “Expenses”
      mean all reasonable attorneys’ fees, retainers, court costs, transcript costs,
      fees of experts, witness fees, travel expenses, duplicating costs, printing
      and
      binding costs, telephone charges, postage, delivery service fees and all other
      disbursements and expenses of the type customarily incurred in connection with
      prosecuting, defending, preparing to prosecute or defend, investigating, or
      being or preparing to be a witness in a Proceeding.

    

    (e)    “Independent
      Counsel” means a law firm, or a member of a law firm, that is experienced in
      matters of corporation law and neither presently is, nor in the past five years
      has been, retained to represent: (i) the Corporation or Indemnitee in any
      other matter material to either such party, or (ii) any other party to the
      Proceeding giving rise to a claim for indemnification hereunder. Notwithstanding
      the foregoing, the term “Independent Counsel” shall not include any person who,
      under the applicable standards of professional conduct then prevailing, would
      have a conflict of interest in representing either the Corporation or Indemnitee
      in an action to determine Indemnitee’s rights under this Agreement.

    

    (f)    “Proceeding”
      means an action, suit, arbitration, alternate dispute resolution mechanism,
      investigation, administrative hearing or any other proceeding, whether civil,
      criminal, administrative or investigative, except one initiated by an Indemnitee
      pursuant to Section 11 of this Agreement to enforce Indemnitee’s rights under
      this Agreement.

    

    Section
      2. Services by Indemnitee.

    

    Indemnitee
      agrees to serve as an officer or director of the corporation, and, at its
      request, as a director, officer, employee, agent or fiduciary of certain other
      corporations and entities. Indemnitee may at any time and for any reason resign
      from any such position (subject to any other contractual obligation or any
      obligation imposed by operation of law).

    

    Section
      3. Indemnification - General.

    

    The
      Corporation shall indemnify, and advance Expenses to, Indemnitee as provided
      in
      this Agreement to the fullest extent permitted by applicable law in effect
      on
      the date hereof and to such greater extent as applicable law may thereafter
      from
      time to time permit. The rights of Indemnitee provided under the preceding
      sentence shall include, but shall not be limited to, the rights set forth in
      the
      other Sections of this Agreement.

    

    Section
      4. Proceeding Other Than Proceedings by or in the Right of the
      Corporation.

    

    Indemnitee
      shall be entitled to the rights of indemnification provided in this Section
      if,
      by reason of Indemnitee’s employment or service as an officer or director,
      Indemnitee is, or is threatened to be made, a party to any threatened, pending
      or completed Proceeding, other than a Proceeding brought by or in the right
      of
      the Corporation to procure a judgment in its favor. Pursuant to this Section,
      Indemnitee shall be indemnified against Expenses, judgments, penalties, fines
      and amounts paid in settlement, actually and reasonable incurred by Indemnitee
      or on Indemnitee’s behalf in connection with any such Proceeding if Indemnitee
      acted in good faith and in a manner Indemnitee reasonably believed to be in
      or
      not opposed to the best interests of the Corporation, and, with respect to
      any
      criminal Proceeding, had no reasonable cause to believe Indemnitee’s conduct was
      unlawful. 

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

     

    Section
      5. Proceedings by or in the Right of the Corporation.

    

    Indemnitee
      shall be entitled to the rights of indemnification provided in this Section
      if,
      by reason of his Corporate Status, Indemnitee is, or is threatened to be made,
      a
      party to any threatened, pending or completed Proceeding brought by or in the
      right of the Corporation to procure a judgment in its favor. Pursuant to this
      Section, Indemnitee shall be indemnified against Expenses, judgments, penalties,
      fines and amounts paid in settlement, actually and reasonably incurred by
      Indemnitee or on Indemnitee’s behalf in connection with any such Proceeding if
      Indemnitee acted in good faith and in a manner Indemnitee reasonably believed
      to
      be in or not opposed to the best interests of the Corporation. Notwithstanding
      the foregoing, no indemnification against such Expenses shall be made in respect
      of any claim, issue or matter in any such Proceeding as to which Indemnitee
      shall have been adjudged to be liable to the Corporation if applicable law
      prohibits such indemnification unless the Court of Chancery of the State of
      Delaware, or the court in which such Proceeding shall have been brought or
      is
      pending, shall determine that indemnification against Expenses may nevertheless
      be made by the Corporation.

    

    Section
      6. Indemnification for Expenses of a Party Who is Wholly or Partly
      Successful.

    

    Notwithstanding
      any other provision of this Agreement, to the extent that Indemnitee is, by
      reason of Indemnitee’s employment or service as an officer or director, a party
      to and is successful, on the merits or otherwise, in any Proceeding, Indemnitee
      shall be indemnified against all Expenses actually and reasonably incurred
      by
      Indemnitee or on Indemnitee’s behalf in connection therewith. If Indemnitee is
      not wholly successful in such Proceeding but is successful, on the merits or
      otherwise, as to one or more but less than all claims, issues or matters in
      such
      Proceeding, the Corporation shall indemnify Indemnitee against all Expenses
      actually and reasonably incurred by Indemnitee or on Indemnitee’s behalf in
      connection with each successfully resolved claim, issue or matter. For the
      purposes of this Section and without limiting the foregoing, the termination
      of
      any claim, issue or matter in any such Proceeding by dismissal, with or without
      prejudice, shall be deemed to be a successful result as to such claim, issue or
      matter.

    

    Section
      7. Indemnification for Expenses of a Witness.

    

    Notwithstanding
      any other provision of this Agreement, to the extent that Indemnitee is, by
      reason of Indemnitee’s employment or service as an officer or director, a
      witness in any Proceeding, Indemnitee shall be indemnified against all Expenses
      actually and reasonably incurred by Indemnitee or on Indemnitee’s behalf in
      connection therewith. 

     

    
      
        
        

      

      
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    Section
      8. Advancement of Expenses.

    

    The
      Corporation shall advance all Expenses incurred by or on behalf of Indemnitee
      in
      connection with any Proceeding within thirty (30) days after the receipt by
      the
      Corporation of a statement or statement from Indemnitee requesting such advance
      or advances from time to time, whether prior to or after final disposition
      of
      such Proceeding. Such statement or statements shall reasonably evidence the
      Expenses incurred by Indemnitee and shall include or be preceded or accompanied
      by an undertaking by or on behalf of Indemnitee to repay any Expenses advanced
      if it shall ultimately be determined that Indemnitee is not entitled to be
      indemnified against such Expenses.

    

    Section
      9. Procedure for Determination of Entitlement to
      Indemnification.

    

    (a)    To
      obtain
      indemnification under this Agreement in connection with any Proceeding, and
      for
      the duration thereof, Indemnitee shall submit to the Corporation a written
      request, including therein or therewith such documentation and information
      as is
      reasonably available to Indemnitee and is reasonably necessary to determine
      whether and to what extent Indemnitee is entitled to indemnification. The
      Secretary of the Corporation shall, promptly upon receipt of any such request
      for indemnification, advise the board in writing that Indemnitee has requested
      indemnification.

    

    (b)    Upon
      written request by Indemnitee for indemnification pursuant to Section 9(a)
      hereof, a determination, if required by applicable law, with respect to
      Indemnitee’s entitlement thereto shall be made in such case: (i) if a
      Change in Control shall have occurred, by Independent Counsel (unless Indemnitee
      shall request that such determination be made by the Board or the stockholders
      in the manner provided for in clauses (ii) or (iii) or this Section 9(b)) in
      written opinion to the Board, a copy of which shall be delivered to Indemnitee;
      (ii) if a Change of Control shall not have occurred, (A) by the Board
      by a majority vote of a quorum consisting of Disinterested Directors, or
      (B) if a quorum of the Board consisting of Disinterested Directors is not
      obtainable, or even if such quorum is obtainable, if such quorum of
      Disinterested Directors so directs, either (x) by Independent Counsel in a
      written opinion to the Board, a copy of which shall be delivered to Indemnitee,
      or (y) by the stockholders of the Corporation, as determined by such quorum
      of Disinterested Directors, or a quorum of the Board, as the case may be; or
      (iii) as provided in Section 10(b) of this Agreement. If it is so
      determined that Indemnitee is entitled to indemnification, payment to Indemnitee
      shall be made within thirty (30) days after such determination. Indemnitee
      shall
      cooperate with the persons or entity making such determination with respect
      to
      Indemnitee’s entitlement to indemnification, including providing to such persons
      or entity upon request any documentation or information which is not privileged
      or otherwise protected from disclosure and which is reasonably available to
      Indemnitee and reasonably necessary to such determination. Any costs or expenses
      (including attorneys’ fees and disbursements) incurred by Indemnitee in so
      cooperating with the persons or entity making such determination shall be borne
      by the Corporation (irrespective of the determination as to Indemnitee’s
      entitlement to indemnification) and the Corporation hereby indemnifies and
      agrees to hold Indemnitee harmless therefrom.

     

    
      
        
        

      

      
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    (c)    If
      required, Independent Counsel shall be selected as follows: (i) if a Change
      of Control shall not have occurred, Independent Counsel shall be selected by
      the
      Board by a majority vote of a quorum consisting of Disinterested Directors
      and
      the Corporation shall give written notice to Indemnitee advising Indemnitee
      of
      the identity of Independent Counsel so selected; or (ii) if a Change of
      Control shall have occurred, Independent Counsel shall be selected by Indemnitee
      (unless Indemnitee shall request that such selection be made by the Board,
      in
      which event (i) shall apply), and Indemnitee shall give written notice to the
      Corporation advising it of the identity of Independent Counsel so selected.
      In
      either event, Indemnitee or the Corporation, as the case may be, may, within
      seven (7) days after such written notice of selection shall have been given,
      deliver to the Corporation or to Indemnitee, as the case may be, a written
      objection to such selection. Such objection may be asserted only on the ground
      that Independent Counsel so selected does not meet the requirements of
“Independent Counsel” as defined in Section 1 of this Agreement, and the
      objection shall set forth with particularity the factual basis of such
      assertion. If such written objection is made, Independent Counsel so selected
      may not serve as Independent Counsel unless and until a court has determined
      that such objection is without merit. If, within twenty (20) days after
      submission by Indemnitee of a written request for indemnification pursuant
      to
      Section 9(a) hereof, no Independent Counsel shall have been selected and not
      objected to, either the Corporation or Indemnitee may petition the Court of
      Chancery of the State of Delaware, or any court in the State of New Jersey
      in
      which such petition would be cognizable, for resolution of any objection which
      shall have been made by the Corporation or Indemnitee to the other’s selection
      of Independent Counsel and/or for the appointment as Independent Counsel of
      a
      person selected by such court or by such other person as such court shall
      designate, and the person with respect to whom an objection is so resolved
      or
      the person so appointed shall act as Independent Counsel under Section 9(b)
      hereof. The Corporation shall pay any and all reasonable fees and expenses
      incurred by such Independent Counsel in connection with its actions pursuant
      to
      this Agreement, and the Corporation shall pay all reasonable fees and expenses
      incident to the procedures of this Section 9(c) regardless of the manner in
      which such Independent Counsel was selected or appointed. Upon the due
      commencement date of any judicial proceeding pursuant to Section 11(a)(iii)
      of
      this Agreement, Independent Counsel shall be discharged and relieved of any
      further responsibility in such capacity (subject to the applicable standards
      of
      professional conduct then prevailing).

    

    Section
      10. Presumptions and Effects of Certain Proceedings.

    

    (a)    If
      a
      Change in Control shall have occurred, in making a determination with respect
      to
      entitlement to indemnification hereunder, the person or persons or entity making
      such determination shall presume that Indemnitee is entitled to indemnification
      under this Agreement if Indemnitee has submitted a request for indemnification
      in accordance with Section 9(a) of this Agreement, and the Corporation shall
      have the burden of proof to overcome that presumption in connection with the
      making by any person, persons or entity of any determination contrary to that
      presumption.

    

    (b)    The
      person or entity empowered or selected under Section 8 of this Agreement shall
      make the determination of whether Indemnitee is entitled to indemnification
      as
      soon as practicable after receipt by the Corporation of the request therefore.
      

     

    
      
        
        

      

      
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    (c)    The
      termination of any Proceeding or of any claim, issue or matter therein, by
      judgment, order, settlement or conviction, or upon a plea of nolo
      contendere
      or its
      equivalent, shall not (except as otherwise expressly provided in this Agreement)
      of itself adversely affect the right of Indemnitee to indemnification or create
      a presumption that Indemnitee did not act in good faith and in a manner which
      Indemnitee reasonably believed to be in or not opposed to the best interests
      of
      the Corporation or, with respect to any criminal Proceeding, that Indemnitee
      had
      reasonable cause to believe that Indemnitee’s conduct was unlawful.

    

    Section
      11. Remedies of Indemnitee.

    

    (a)    In
      the
      event that (i) a determination is made pursuant to Section 9 or 10 of this
      Agreement that Indemnitee is not entitled to indemnification under this
      Agreement, (ii) advancement of Expenses is not timely made pursuant to
      Section 8 of this Agreement, (iii) the determination of entitlement to
      indemnification is made by Independent Counsel pursuant to Section 9 of this
      Agreement and such determination shall not have been made and delivered in
      a
      written opinion within ninety (90) days after receipt by the Corporation of
      the
      request for indemnification, (iv)  or (iv) payment of indemnification
      is not made within thirty (30) days after such determination has been made
      that
      Indemnitee is entitled to indemnification or such determination is deemed to
      have been made pursuant to Sections 9 or 10 of this Agreement, Indemnitee shall
      be entitled to an adjudication in an appropriate court of the State of Delaware
      or the State of New Jersey , of Indemnitee’s entitlement to such indemnification
      or advancement of Expenses. Indemnitee shall commence such proceeding seeking
      an
      adjudication or an award within one hundred eighty (180) days following the
      date
      on which Indemnitee first has the right to commence such proceeding pursuant
      to
      this Section 11(a).

    

    (b)    In
      the
      event that a determination shall have been made pursuant to Section 9 of this
      Agreement that Indemnitee is not entitled to indemnification, any judicial
      proceeding commenced pursuant to this Section shall be conducted in all respects
      as a de
      novo
      trial
      and Indemnitee shall not be prejudiced by any reason of that adverse
      determination. If a Change of Control shall have occurred, in any judicial
      proceeding commenced pursuant to this Section the Corporation shall have the
      burden of proving that Indemnitee is not entitled to indemnification or
      advancement of Expenses, as the case may be.

    

    (c)    If
      a
      determination shall have been made or deemed to have been made pursuant to
      Section 9 or 10 of this Agreement that Indemnitee is entitled to
      indemnification, the Corporation shall be bound by such determination in any
      judicial proceeding commenced pursuant to this Section, absent (i) a
      misstatement by Indemnitee or Indemnitee’s representative of a material fact, or
      an omission of any material fact necessary to make Indemnitee’s or Indemnitee’s
      representative’s statement not materially misleading, in connection with the
      request for indemnification, or (ii) prohibition of such indemnification
      under applicable law.

    

    (d)    The
      Corporation shall be precluded from asserting in any judicial proceeding
      commenced pursuant to this Section that the procedures and presumptions of
      this
      Agreement are not valid, binding and enforceable and shall stipulate in any
      such
      court that the Corporation is bound by all the provisions of this
      Agreement.

     

    
      
        
        

      

      
        23

        
          

        

      

      
        
        

      

    

     

    (e)    In
      the
      event that Indemnitee, pursuant to this Section, seeks a judicial adjudication
      of Indemnitee’s rights under, or to recover damages for breach of, this
      Agreement, Indemnitee shall be entitled to recover from the Corporation and
      shall be indemnified by the Corporation against, any and all expenses (of the
      kinds described in the definition of Expenses) actually and reasonably incurred
      by Indemnitee in such judicial adjudication, but only if Indemnitee prevails
      therein. If it shall be determined that Indemnitee is entitled to receive part
      but not all of the indemnification or advancement of expenses sought, the
      expenses incurred by Indemnitee in connection with such judicial adjudication
      shall be appropriately prorated.

    

    Section
      12. Non-Exclusivity; Survival of Rights; Insurance
      Subrogation.

    

    (a)    The
      rights of indemnification and to receive advancement of Expenses as provided
      by
      this Agreement shall not be deemed exclusive of any other rights to which
      Indemnitee may at any time be entitled under applicable law, the certificate
      of
      incorporation or by-laws of the Corporation, any agreement, a vote of
      stockholders or resolution of directors or otherwise. No amendment, alteration
      or repeal of this Agreement or any provision hereof shall be effective as to
      any
      Indemnitee with respect to any action taken or omitted by such Indemnitee in
      Indemnitee’s employment or service as an officer or director prior to such
      amendment, alteration or repeal.

    

    (b)    To
      the
      extent that the corporation maintains an insurance policy or policies providing
      liability insurance for directors, officers, employees, agents or fiduciaries
      of
      the corporation or of any other corporation, partnership, joint venture, trust,
      employee benefit plan or other enterprise which such person serves at the
      request of the Corporation, Indemnitee shall be covered by such policy or
      policies in accordance with its or their terms to the maximum extent of the
      coverage available for any such director, officer, employee, agent or fiduciary
      under such policy or policies.

    

    (c)    In
      the
      event of any payment under this Agreement, the Corporation shall be subrogated
      to the extent of such payment to all of the rights of recovery of Indemnitee
      who
      shall execute all papers required and take all action necessary to secure such
      rights, including execution of such documents as are necessary to enable the
      Corporation to bring suit to enforce such rights.

    

    (d)    The
      Corporation shall not be liable under this Agreement to make any payment of
      amounts otherwise indemnifiable hereunder if and to the extent that Indemnitee
      has otherwise actually received such payment under any insurance policy,
      contract, agreement or otherwise.

    

    Section
      13. Duration of Agreement.

    

    This
      Agreement shall continue until and terminate upon the later of: (a) ten
      (10) years after the date that Indemnitee shall have ceased to serve as a
      director, officer, employee, agent or fiduciary of the Corporation or of any
      other corporation, partnership, joint venture, trust, employee benefit plan
      or
      other enterprise which Indemnitee served at the request of the Corporation;
      (b) the final termination of all pending Proceedings in respect of which
      Indemnitee is granted rights of indemnification or advancement of Expenses
      hereunder and of any proceeding commenced by Indemnitee pursuant to Section 11
      of this Agreement. This Agreement shall be binding upon the Corporation and
      its
      successors and assigns and shall inure to the benefit of Indemnitee and
      Indemnitee’s heirs.

     

    
      
        
        

      

      
        24

        
          

        

      

      
        
        

      

    

     

    Section
      14. Severability.

    

    If
      any
      provision or provisions of this Agreement shall be held to be invalid, illegal
      or unenforceable for any reason whatsoever: (a) the validity, legality and
      enforceability of the remaining provisions of this Agreement (including, without
      limitation, each portion of any Section of this Agreement containing any such
      provision held to be invalid, illegal or unenforceable, that is not itself
      invalid, illegal unenforceable) shall not in any way be affected or impaired
      thereby; and (b) to the fullest extent possible, the provisions of this
      Agreement (including, without limitation, each portion of any Section of this
      Agreement containing any such provision held to be invalid, illegal or
      unenforceable, that is not itself invalid, illegal or unenforceable) shall
      be
      construed so as to give effect to the intent manifested by the provision held
      invalid, illegal or unenforceable.

    

    Section
      15. Exception to Right of Indemnification or Advancement of
      Expenses.

    

    Except
      as
      provided in Section 11(e), Indemnitee shall not be entitled to indemnification
      or advancement of Expenses under this Agreement with respect to any Proceeding,
      or any claim therein, brought or made by Indemnitee against the Corporation.
      For
      the purposes of this Section 15, a Proceeding in the right of the Corporation
      shall not be deemed to constitute a Proceeding brought or made by the
      Corporation.

    

    Section
      16. Identical Counterparts.

    

    This
      Agreement may be executed in one or more counterparts, each of which shall
      for
      all purposes be deemed to be an original but all of which together shall
      constitute one and the same Agreement. Only one such counterpart signed by
      the
      party against whom enforceability is sought needs to be produced to evidence
      the
      existence of this Agreement.

    

    Section
      17. Headings.

    

    The
      headings of the paragraphs of this Agreement are inserted for convenience only
      and shall not be deemed to constitute part of this Agreement or to affect the
      construction thereof.

    

    Section
      18. Modification and Waiver.

    

    No
      supplement, modification or amendment to this Agreement shall be binding unless
      executed in writing by both of the parties hereto. No waiver of any of the
      provisions of this Agreement shall be deemed or shall constitute a waiver of
      any
      other provisions hereof (whether or not similar) nor shall such waiver
      constitute a continuing waiver.

     

    
      
        
        

      

      
        25

        
          

        

      

      
        
        

      

    

     

    Section
      19. Notice by Indemnitee.

    

    Indemnitee
      agrees promptly to notify the Corporation in writing upon being served with
      any
      summons, citation, subpoena, complaint, indictment, information or other
      document relating to any Proceeding or matter which may be subject to
      indemnification or advancement of Expenses covered hereunder.

     

    
      	 	COLUMBIA LABORATORIES, INC.
	 	 
	/S/ James
              Meer                          	By:     /S/
              Robert S.
              Mills                                    
	
              James Meer, Indemnitee

               

            	
              Name:  Robert
                S. Mills

              Title: President,
                and Chief
                Executive Officer

            

    

    

    

    I,
      Michael McGrane, Secretary, certify that the Board of Directors has authorized
      the Corporation to enter into this Agreement by a resolution adopted at a
      meeting on November 30, 2006.

    

    

    
      	 	
              /S/
                Michael
                McGrane                         
                

              Michael
                McGrane

              Secretary

            

    

     

    
      
        
        

      

      
        26

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