Document:

<PAGE>

                                                                    Exhibit 10.1

                              EMPLOYMENT AGREEMENT

     THIS EMPLOYMENT AGREEMENT (the "Agreement") dated February 27, 2003, is by
and between Closure Medical Corporation, a Delaware corporation (the "Company"),
and James F. Buck ("Employee").

     WHEREAS, the Company and Employee desire to enter into an agreement to
provide for Employee's employment by the Company, upon the terms and conditions
set forth herein;

     NOW, THEREFORE, the parties hereto, intending to be legally bound, agree as
follows:

                                      Terms

1.   Employment. The Company hereby employs Employee, and Employee hereby
accepts such employment and agrees to perform his duties and responsibilities
hereunder, in accordance with the terms and conditions hereinafter set forth.

     1.1   Employment Term. The term of this Agreement (the "Employment Term")
shall commence as of April 14, 2003 and shall continue until April 13, 2004
(unless earlier terminated in accordance with this Agreement) or extended in
accordance with the following sentence. The Employment Term shall automatically
be extended for successive one-year terms, subject to the termination provisions
hereof, unless the Company notifies Employee, in writing, at least one hundred
and eighty (180) days prior to the end of the then current Employment Term, or
the Employee notifies the Company, in writing, at least sixty (60) days prior to
the end of the then current Employment Term, that the Agreement is to be
terminated. In the event the Company gives such notice, unless such notice
indicates that Employee's employment also is to be terminated, then upon
expiration of the Employment Term, or any renewal, Employee shall become and be
an "at will" employee, subject to the provisions of Section 12 herein.

     1.2   Duties and Responsibilities.

           1.2.1 During the Employment Term, Employee shall serve as Vice
President, Marketing and shall perform all duties and accept all
responsibilities incidental to such position or as otherwise may be reasonably
assigned to him by the Company's President and Chief Executive Officer or its
Board of Directors (the "Board"). Nothing in this Agreement, however, shall
constitute a guarantee by the Company that Employee will always have the title
or duties specified herein.

           1.2.2 Employee represents to the Company that, he is not subject to,
and agrees that he will not hereafter during the Employment Term become subject
to, any employment agreement, non-competition covenant, non-disclosure agreement
or other agreement, covenant, understanding or restriction which would prohibit
Employee from fully performing his duties and responsibilities hereunder, or
which would otherwise in any manner, directly or indirectly, limit or adversely
affect the duties and responsibilities which may now or in the future be
assigned to Employee by the Company's Chief Executive Officer or the Board.

     1.3   Extent of Service. During the Employment Term, Employee agrees to use
his best efforts to carry out his duties and responsibilities under Section
1.2.1 hereof and, consistent with the other provisions of this Agreement, to
devote his full time, attention and energy thereto during normal business hours.
Except as provided in Section 4 hereof, the foregoing shall not be construed as
preventing Employee from making investments in other businesses or enterprises,
provided that Employee agrees not to become engaged in any other business,
charitable or community activity which may materially interfere with his ability
to discharge his duties and responsibilities to the Company.

     1.4   Base Salary. For all the services rendered by Employee hereunder, the
Company shall pay Employee an annual salary at the rate of one hundred ninety
thousand dollars ($190,000) for each full year of the Employment Term, plus such
additional amounts, if any, as may be approved by the Board or its Compensation
Committee (the "Committee") (as such amount may be increased from time to time
hereunder, the "Base Salary"),

<PAGE>

payable in installments at such times as the Company customarily pays its other
senior officers (but in no event less often than monthly). Employee's Base
Salary shall be reviewed by the Board or the Committee at the end of each
employment year to determine if an increase is appropriate for the next
employment year pursuant to its normal performance review policies for
executives, taking into account Employee's performance and increases in the cost
of living. The Company shall be entitled to make proper withholdings from
Employee's Base Salary as required by law or agreed to by Employee.

     1.5   Benefits. During the Employment Term, Employee shall be (a) entitled
to the benefits described in Exhibit A and to participate in such retirement,
profit sharing, group insurance, life insurance, long-term disability,
medical/dental and any other fringe benefit plans, if any, as may be authorized
from time to time by the Board in its sole discretion for officers of the
Company generally, and (b) entitled to four weeks of paid vacation, in addition
to customary holidays and personal days in accordance with the Company's normal
personnel policies. Accrued and unused vacation may be carried forward into the
subsequent year only if approved in writing by the Committee, Board or Chief
Executive Officer of the Company.

     1.6   Incentive Compensation. Employee shall be entitled to participate in
such incentive compensation or bonus plans, if any, as may be established from
time to time in respect of each complete fiscal year during the Employment Term
by the Board or the Committee in their sole discretion, the terms and provisions
of which shall also be in the sole discretion of the Board or the Committee. In
addition, with respect to each calendar year during the Employment Term,
Employee will be entitled to receive an annual bonus, payable no later than 100
days after the end of such calendar year, in a minimum amount equal to 20% of
his Base Salary and a maximum amount equal to 60% of his Base Salary, based on
performance milestones significant to the progress of the Company to be
established by the Board upon the recommendation of the Committee based upon
criteria to be submitted to the Committee by the end of the first calendar
quarter of each year by the Chief Executive Officer. The current applicable
performance milestones are attached and will be in effect until December 31,
2003. (Refer to Exhibit B)

     1.7   Stock Options. In consideration for Employee's execution of this
Agreement, the Committee has granted to Employee, as of the date of execution
hereof ("Execution Date"), subject to the execution and delivery of this
Agreement, a nonqualified stock option to purchase 80,000 shares of Common Stock
of the Company pursuant to the Company's Equity Compensation Plan and a stock
option agreement in the form used generally by the Company, a copy of which is
attached hereto. Notwithstanding anything herein to the contrary, Employee's
rights and entitlements with respect to such options will be governed by the
terms of such stock option agreement and Equity Compensation Plan.

     1.8   Expenses. The Company shall reimburse Employee on a timely basis for
all ordinary and necessary out-of-pocket business expenses incurred in
connection with the discharge of his duties and responsibilities hereunder
during the Employment Term in accordance with the Company's expense approval
procedures then in effect and upon presentation to the Company of an itemized
account and written proof of such expenses.

2.   Confidential Information. Employee recognizes and acknowledges that by
reason of employment by and service to the Company, he has had and will continue
to have access to financial, proprietary and other confidential information of
the Company and its affiliates, including, without limitation, information and
knowledge pertaining to products and services offered, research ideas, methods
and results, innovations, designs, ideas, plans, trade secrets, proprietary
information, distribution and sales methods and systems, sales and profit
figures, customer and client lists, and relationships between the Company and
its affiliates, distributors, customers, clients, suppliers and other who have
business dealings with the Company and its affiliates ("Confidential
Information"). Employee acknowledges that such Confidential Information is a
valuable and unique asset and covenants that he will not, either during or after
the term of this Agreement, disclose any such Confidential Information to any
person for any reason whatsoever without the prior written authorization of the
Board, unless such information is in the public domain through no fault of
Employee or except: (a) as may be required by law with prior notice to the
Company; or (b) in the course of his employment hereunder and solely in
furtherance of the interests of the Company and its affiliates. Employee agrees
that immediately upon the request of the Company and in any event upon
termination of his employment with the Company, he will deliver to the Company
(and will not keep in his possession or deliver to anyone else) all Confidential
Information whether developed by him pursuant to his employment with the Company
or otherwise belonging to the Company.

<PAGE>

3.   Developments. All developments, including inventions, whether patentable or
otherwise, trade secrets, discoveries, improvements, ideas and writings which
either directly or indirectly relate to or may be useful in the business of the
Company or any of its affiliates (the "Developments") which Employee, either by
himself or in conjunction with any other person or persons, shall conceive,
make, develop, acquire or acquire knowledge of during the Employment Term or at
any time thereafter during which he is employed by the Company, shall become and
remain the sole and exclusive property of the Company. Employee hereby assigns,
transfers and conveys, and agrees to so assign, transfer and convey, all of his
right, title and interest in and to any and all such Developments and to
disclose fully as soon as practicable, in writing, all such Developments to the
Board. At any time and from time to time, upon the request and at the expense of
the Company, Employee will execute and deliver any and all instruments,
documents and papers, give evidence and do any and all other acts which, in the
opinion of counsel for the Company, are or may be necessary or desirable to
document such transfer or to enable the Company to file and prosecute
applications for and to acquire, maintain and enforce any and all patents,
trademark registrations or copyrights under United States or foreign law with
respect to any such Developments or to obtain any extension, validation,
re-issue, continuance or renewal of any such patent, trademark or copyright. The
Company will be responsible for the preparation of any such instruments,
documents and papers and for the prosecution of any such proceedings and will
reimburse Employee for all reasonable expenses incurred by him in compliance
with the provisions of this Section.

4.   Non-Competition.

     4.1   During the Employment Term and for a period of two years thereafter,
Employee will not, without prior written consent of the Board, directly or
indirectly, own, manage, operate, join, control, finance or participate in the
ownership, management, operation, control or financing of, or be connected as an
officer, director, employee, partner, principal, agent, representative,
consultant or otherwise with or use or permit his name to be used in connection
with, any business or enterprise engaged within any state of the United States,
the District of Columbia or any foreign jurisdiction in any business that
competes with the business of the Company business as in effect either during
the Employment Term or on the date Employee's employment terminates, as
applicable. It is recognized by Employee that the business of the Company and
Employee's connection therewith is or will be international in scope, and that
geographical limitations on this non-competition covenant and the
non-solicitation covenant set forth in Section 5 are therefore not appropriate.

     4.2   The foregoing restriction shall not be construed to prohibit the
ownership by Employee of not more than five percent (5%) of any class of
securities of any corporation which is engaged in any of the foregoing
businesses having a class of securities registered pursuant to the Securities
Exchange Act of 1934, provided that such ownership represents a passive
investment and that neither the Employee nor any group of persons including
Employee in any way, either directly or indirectly, manages or exercises control
of any such corporation, guarantees any of its financial obligations, otherwise
takes part in its business, other than exercising his rights as a shareholder,
or seeks to do any of the foregoing.

5.   No Solicitation. Employee agrees that during the Employment Term and for a
period of two years thereafter, Employee will not, either directly or
indirectly, (i) call on or solicit any person, firm, corporation or other entity
who or which at the time of the termination of Employee's employment was, or
within one year prior thereto had been, a customer of the Company or any of its
affiliates for the purpose of offering competitive goods or services or (ii)
solicit the employment of any person who was employed by the Company or any of
its affiliates on a full or part-time basis at the time of Employee's
termination of employment, unless such person (a) was involuntarily discharged
by the Company or such affiliate, or (b) voluntarily terminated his relationship
with the Company or such affiliate prior to Employee's termination of
employment.

6.   Equitable Relief.

     6.1   Employee acknowledges that the restrictions contained in Sections 2,
3, 4 and 5 hereof are reasonable and necessary to protect the legitimate
interests of the Company and its affiliates, that the Company would not have
entered into this Agreement in the absence of such restrictions, and that any
violation of any provision of those Sections may result in irreparable injury to
the Company and its affiliates (each of which shall be deemed a third party
beneficiary of such restriction). Employee represents and acknowledges that (a)
he has been

<PAGE>

advised by the Company to consult his own legal counsel in respect
of this Agreement, and (b) that he has had full opportunity, prior to execution
of this Agreement, to review thoroughly this Agreement with his counsel.

     6.2   Employee agrees that each of the Company and its affiliates shall be
entitled to preliminary and permanent injunctive relief, without the necessity
of proving actual damages, as well as to an equitable accounting of all
earnings, profits and other benefits arising from any violation of Section 2, 3,
4 or 5 hereof, which rights shall be cumulative and in addition to any other
rights or remedies to which the Company or any affiliate may be entitled. In the
event that any provisions of Section 2, 3, 4 or 5 hereof should ever be
adjudicated to exceed time, geographic, service or other limitations permitted
by applicable law in any jurisdiction, then such provision shall be deemed
reformed in such jurisdiction to the maximum time, geographic, service, or other
limitations permitted by applicable law.

     6.3   Employee and the Company irrevocably and unconditionally (i) agree
that any suit, action or other legal proceeding arising out of this Agreement,
including without limitation, any action commenced by the Company for
preliminary and permanent injunctive relief and other equitable relief, may be
brought in any court of competent jurisdiction in the State of North Carolina,
provided that any suit, action or other legal proceeding brought against the
Company shall be brought and adjudicated in the United States District Court for
the Eastern District of North Carolina or, if such court will not accept
jurisdiction, in any court of competent civil jurisdiction sitting in Wake
County, North Carolina, (ii) consent to the jurisdiction of any such court in
any such suit, action or proceeding and (iii) waive any objection which Employee
or the Company may have to the laying of venue of any such suit, action or
proceeding in any such court. Employee and the Company also irrevocably and
unconditionally consent to the service of any process, pleading, notices or
other papers in any manner permitted by the notice provisions hereof.

     6.4   Employee agrees that he will provide, and that the Company may
similarly provide, a copy of Sections 2, 3, 4, and 5 of this Agreement to any
business or enterprise (i) which he may directly or indirectly own, manage,
operate, finance, join, control or participate in the ownership, management,
operation, financing, control or control of, or (ii) with which he may be
connected with as an officer, director, employee, partner, principal, agent,
representative, consultant or otherwise, or in connection with which he may use
or permit his name to be used; provided, however, that this provision shall not
apply in respect of Sections 4 and 5 of this Agreement after expiration of the
time periods set forth therein.

7.   Termination. This Agreement shall terminate prior to the expiration of the
Employment Term upon the occurrence of any one of the following events:

     7.1   Disability. The Company may terminate this Agreement if Employee is
unable fully to perform his duties and responsibilities hereunder to the full
extent required by the Board by reason of illness, injury or incapacity for six
(6) consecutive months, or for more than six (6) months in the aggregate during
any period of twelve (12) calendar months, during which time he shall continue
to be compensated as provided in Section 1 hereof. In such event, the Company
shall have no further liability or obligation to Employee for compensation or
other benefits under this Agreement except (i) as may be provided under any
disability benefit plan or other employee benefit plan and program which may be
in effect and in which he participated, and (ii) Employee shall be entitled to
receive a pro rata portion of the incentive compensation pursuant to Section 1.6
in respect of the year during which Employee first became disabled. The right
and benefits of Employees under any such employee benefit plans and programs
will be determined in accordance with the terms and provisions of such plans and
programs. Notwithstanding the foregoing, in no event shall Employee be entitled
to Base Salary and/or Bonus under this Agreement and Monthly Benefits under the
Company's Long Term Disability Plan for the same period of disability; and
provided further, in the event that Employee becomes eligible for Monthly
Benefits under the Company's Long Term Disability Plan, such benefits shall
offset, on a dollar for dollar basis, benefits otherwise payable under this
Section 7.1. Employee agrees, in the event of any dispute under this Section
7.1, to submit to a physical examination by an independent, licensed physician
selected by the Board.

     7.2   Death. This Agreement shall terminate if Employee dies during the
Employment Term. In such event, the Company shall pay to Employee's executors,
legal representatives or administrators an amount equal to the installment of
his Base Salary set forth in Section 1.4.1 hereof for the month in which he
dies, all accrued incentive compensation pursuant to Section 1.6 and a pro rata
portion of the incentive compensation pursuant to Section 1.6 in respect of the
year during which Employee died, and, thereafter, the Company shall have no
further liability or

<PAGE>

obligation under this Agreement to his executors, legal representatives,
administrators, heirs or assigns or any other person claiming under or through
him, except as may be provided under any employee benefit plan or compensation
program which may be in effect for employees of the Company and in which he
participated. The rights and benefits of Employee under any such employee
benefit plans and programs will be determined in accordance with the terms and
provisions of such plans and programs.

     7.3   Cause. The Company may terminate this Agreement, at any time, for
"cause". For purposes of the Agreement, Employee's employment may be terminated
for "cause" if: (a) he engages in gross misconduct, or dishonesty (which in
either case results in material harm to the Company); (b) materially fails to
perform or observe any of the terms or provisions of this Agreement (c) fails to
carry out reasonable directives of the Chief Executive Officer of the Company or
the Board in accordance with Section 1.2; or (d) is convicted of a felony or is
involved in substance abuse; provided, however, that "cause" shall not include
bad judgment or any act or omission reasonably believed by Employee in good
faith to have been in or not opposed to the best interests of the Company, and
provided further, however, that in any event, Employee shall be given written
notice by the Board that the Company intends to terminate Employee's employment
for cause, which written notice shall specify the act or acts on the basis of
which the Company intends so to terminate Employee's employment, and Employee
shall then be given the opportunity, within fifteen (15) days of his receipt of
such notice, to have a meeting with the Board to discuss such act or acts. If
the basis of such written notice is an act or acts other than an act or acts
described in clause (d) of the preceding sentence, Employee will be given seven
(7) days after such meeting within which to cease or correct the performance (or
nonperformance) or to cure the harm giving rise to such written notice and, upon
failure of Employee within such seven (7) day period to cease or correct same,
Employee's employment by the Company shall automatically terminate hereunder for
cause. If Employee ceases or cures to the satisfaction of the Board of
Directors, the Employee's employment agreement shall continue in accordance with
the terms hereof. Upon such termination or removal, Employee shall be entitled
to all accrued Base Salary and a pro rata portion of all incentive compensation
for the year in which termination occurs, and any benefits due under any
compensation or benefit plan including those listed in Section 1 hereof provided
by the Company for officers generally or otherwise.

     7.3.1       Without Cause. The Company may terminate this Agreement, at any
                 time, for any reason upon thirty (30) days' prior written
                 notice to Employee; provided, however, that in the event of a
                 termination without cause, Employee shall be entitled to: (i)
                 all accrued Base Salary and a pro rata portion of all incentive
                 compensation for the year in which termination occurs, and any
                 benefits due under any compensation or benefit plan including
                 those listed in Section 1 hereof provided by the Company for
                 officers generally or otherwise; (ii) any remaining Base Salary
                 and incentive compensation for the remainder of the year in
                 which termination occurs; and (iii) a continuation for ninety
                 (90) days from date of termination of Employee's then current
                 Base Salary and incentive compensation and benefits hereunder.

     7.4         Change in Control Termination.

           7.4.1 For purposes of this Agreement, a "Change in Control"
shall be deemed to have occurred if:

                 (a)   As a result of a tender offer, stock purchase, other
stock acquisition, merger, consolidation, recapitalization, reverse split, or
sale or transfer of assets, any person or group (as such terms are used in and
under Section 13(d) of the Exchange Act), but excluding Rolf D. Schmidt and F.W.
Schmidt or any entity controlled by either or both of them, becomes the
beneficial owner (as defined in Rule 13-d under the Exchange Act), directly or
indirectly, of securities of the Company representing more than 50.1% of the
common stock of the Company or the combined voting power of the Company's then
outstanding securities;

                 (b)   A liquidation or dissolution of the Company, or a sale
(excluding transfers to subsidiaries) of all or substantially all of the
Company's assets occurs; or

                 (c)   During any period of two consecutive years, individuals
who, at the beginning of such period, constitute the Board cease for any reason
to constitute at least a majority thereof, unless the election, or the
nomination for election by the Company's shareholders, or at least two-thirds of
the directors who were not

<PAGE>

directors at the beginning of such period was approved by a vote of at least
two-thirds of the directors then still in office who were either directors at
the beginning of the period or who, in connection with their election or
nomination, received the foregoing two-thirds approval.

           7.4.2 After the occurrence of a Change in Control, Employee shall be
entitled to receive payment and benefits pursuant to this Agreement if, after
the occurrence of a Change in Control, his employment with the Company is
terminated under any of the following circumstances: (a) the Company terminates
Employee's employment for reasons other than "Cause," "Disability," or death; or
(b) the Employee terminates his employment with the Company for "Good Reason."
For purposes of this Agreement, "Good Reason" shall mean the occurrence within
one (1) year after a Change in Control of any of the following events or
conditions: (i) a material adverse change in the Employee's status, title,
position or responsibilities from that in effect immediately prior to the Change
in Control; (ii) a reduction in the Employee's salary; (iii) the Company's
requiring the Employee to relocate beyond a twenty-five (25) mile radius from
Raleigh, North Carolina; (iv) any purported termination of Employee's employment
for cause or disability without grounds therefor; (v) any material breach by the
Company of any provision of this Agreement; or (vi) the failure of the Company
to obtain an agreement, satisfactory to the Employee, from any successor or
assign of the Company to assume and agree to perform this Agreement.

           7.4.3 In the event that Employee's employment with the Company
terminates under any of the circumstances described in Section 7.4.2 above,
Employee shall be entitled to receive all of the following: (a) All accrued
compensation and any pro rata incentive compensation Employee may have earned up
to the date of termination; (b) A continuation for one year from date of
termination of Employee's then current annual salary, and incentive compensation
and benefits hereunder. The Company shall maintain in full force and effect, for
one (1) year after the date of termination, all benefit plans and programs in
which Employee was entitled to participate immediately prior to the date of
termination, provided that Employee's continued participation is possible under
the general terms and provisions of such plans and programs. Employee's
continued participation in such plans and programs shall be at no greater cost
to Employee than the cost he bore for such participation immediately prior to
the date of termination. If Employee's participation in any such plan or program
is barred, the Company shall arrange upon comparable terms, and at no greater
cost to Employee than the cost he bore for such plans and programs prior to the
date of termination, to provide Employee with benefits substantially similar to
those which he is entitled to receive under any such plan or program.

     7.5   Other Terminations.

           7.5.1 Employee may terminate this Agreement upon ten (10)
days' prior written notice to the Company if the Company fails to fulfill any of
the material terms and provisions hereof including the failure to pay Employee
any amounts payable hereunder within ten (10) business days after the same shall
be due and payable. Provided, however, that Company shall be given the
opportunity, within five (5) business days of its receipt of such written
notice, to have a meeting with Employee to discuss any alleged failure to
fulfill any of the material terms and provisions of this Agreement. The Company
will be given five (5) days after such meeting within which to cure the alleged
violation of this Agreement giving rise to such written notice. If the Company
cures to the satisfaction of Employee, this Agreement shall continue in
accordance with the terms hereof. In the event of such termination, and upon
Employees execution of a Release and Confidentiality Agreement, Employee shall
be entitled to receive payment of his Base Salary, all incentive compensation
pursuant to Section 1.6 and all other benefits and compensation to which he
would have been entitled under this Agreement until the end of the Employment
Term. Employee understands that he is not otherwise entitled to receive the
foregoing consideration, which is being provided in exchange for his execution
of the above-referenced Release and Confidentiality Agreement.

           7.5.2 Employee may voluntarily terminate this Agreement upon
thirty (30) days' prior written notice for any reason; provided, however, that
no further payments shall be due under this Agreement in that event except that
Employee shall be entitled to all accrued compensation and a pro rata portion of
all incentive compensation for the year in which termination occurs, and any
benefits due under any compensation or benefit plan including those listed in
Section 1 hereof provided by the Company for officers generally or otherwise.

7.5.3            In the event Employee terminates this Agreement pursuant to
                 Section 1.1, no further payments shall be due to Employee under
                 this Agreement except that Employee shall be entitled to all
                 accrued Base Salary and a pro rata portion of all incentive
                 compensation for

<PAGE>

                 the year in which the termination occurs, and any benefits due
                 under any compensation or benefit plan including those listed
                 in Section 1 hereof provided by the Company for officers
                 generally or otherwise.

7.5.4            Change in CEO. In the event that the President and Chief
                 Executive Officer (CEO) of the Company changes and Employee's
                 employment is terminated within the first year of the
                 Employment Term, i.e., before March 31, 2004, Employee shall be
                 entitled to receive: (i) all accrued Base Salary and any pro
                 rata incentive compensation Employee may have earned up to the
                 date of termination; (ii) any remaining Base Salary and
                 incentive compensation for the remainder of the first year
                 Employment Term; and (iii) a continuation for six (6) months
                 from the date of termination of Employee's then current Base
                 Salary, and incentive compensation.

8.   Working Facilities. The Employee shall be provided with an office,
stenographic and technical help and such other facilities and services as may be
suitable to Employee's position in accordance with manpower plan approved by the
Board.

9.   Location. Employee shall not be required, without his consent, to render
services at any place other than the area of Raleigh, North Carolina; however;
Employee may be asked to travel in connection with the Company's business as
reasonably appropriate for the performance of his duties.

10.  Professional Dues and Continuing Education. The Company agrees to reimburse
the Employee for reasonable professional dues and continuing education expenses
necessary to maintain applicable certifications upon approval by the Company's
Chief Executive Officer or the Board.

11.  Indemnification. The Company shall indemnify the Employee, to the maximum
extent permitted by applicable law, against all costs, charges and expenses
incurred or sustained by him in connection with any action, suit or proceeding
to which he may be a party or in which he may be a witness by reason of his
being an officer, director or employee of the Company or of any subsidiary or
affiliate of the Company.

12.  Survival. Notwithstanding the termination of this Agreement, the Company's
obligations under Sections 1.4, 1.5, 1.6, 1.7, 1.8, 6.3, 7 and 11 and Employee's
obligations under Sections 2, 3, 4, 5, 6, and 7 shall survive and remain in full
force and effect.

13.  Governing Law. This Agreement shall be governed by and interpreted under
the laws of the State of North Carolina without giving effect to any conflict of
law provisions.

14.  Notices. All notices and other communications hereunder or in connection
herewith shall be in writing and shall be deemed to have been given when
delivered by hand or reputable express delivery service, mailed by certified or
registered mail, return receipt requested, or sent by fax to the party as
follows (provided that notice of change of address shall be deemed given only
when received):

     If to the Company, to:   Closure Medical Corporation
                                      5250 Greens Dairy Road
                                      Raleigh, North Carolina 27616
                                      Fax: (919) 876-7874
                                      Attn:  Daniel A. Pelak, CEO

     If to Employee, to:              James F. Buck
                                      c/o Closure Medical Corporation
                                      5250 Greens Dairy Road
                                      Raleigh, NC  27616

     or to such other names or addresses as the Company or Employee, as the
     case may be, shall designate by

<PAGE>

     notice to the other person in the manner specified in this Section.

15.  Miscellaneous.

     15.1  This Agreement supersedes all prior agreements and sets forth the
entire understanding among the parties hereto with respect to the subject matter
hereof and cannot be changed, modified, extended or terminated except upon
written amendment approved by the Board and executed on the Company's behalf by
a duly authorized officer.

     15.2  All of the terms of this Agreement shall be binding upon and inure
to the benefit of and be enforceable by the respective heirs, executors,
administrators, legal representatives, successors and assigns of the parties
hereto, (including without limitation, any person, partnership, company or
corporation which may acquire substantially all of the Company's assets or
business or with or into which the Company may be merged, liquidated,
consolidated or otherwise combined), except that the duties and responsibilities
of Employee hereunder are of a personal nature and shall not be assignable or
delegatable in whole or in part by Employee.

     15.3  If any provision of this Agreement or application thereof to anyone
or any circumstances is held invalid or unenforceable in any jurisdiction, the
remainder of this Agreement, and the application of such provision to such
person or entity or such circumstance in any other jurisdiction or to other
persons, entities or circumstances in any jurisdiction, shall not be affected
thereby, and to this end the provisions of this Agreement are severable.

     15.4  No remedy conferred upon the Company or Employee by this Agreement
is intended to be exclusive of any other remedy, and each and every such remedy
shall be cumulative and shall be in addition to any other remedy given hereunder
or now or hereafter existing at law or in equity. No delay or omission by the
Company or Employee exercising any right, remedy or power hereunder or existing
at law or in equity shall be construed as a waiver thereof, and any such right,
remedy or power may be exercised by the Company or Employee from time to time
and as often as may be deemed expedient or necessary by the Company or Employee
in its sole discretion.

     15.5  All section headings are for convenience only. This Agreement may
be executed in several counterparts, each of which shall be original. It shall
not be necessary in marking proof of this Agreement or any counterpart hereof to
produce or account for any of the other counterparts.

     15.6  If either party should file a lawsuit against the other to enforce
any right such party has hereunder, the prevailing party shall also be entitled
to recover a reasonable attorney's fee and costs of suit in addition to other
relief awarded such prevailing party.

IN WITNESS WHEREOF, the undersigned, intending to be legally bound, have
executed this Agreement as of the date first above written.

                           CLOSURE MEDICAL CORPORATION

                           By: /s/ Daniel A. Pelak                     2/27/03
                               ----------------------------            -------
                               Daniel A. Pelak
                               President and Chief Executive Officer

AGREED TO AND ACCEPTED:

/s/ James F. Buck          3/3/03
--------------------       ---------
James F. Buck

<PAGE>
                                    EXHIBIT A

                               Employee's Benefits

MEDICAL/DENTAL INSURANCE. The Company will provide, at no charge, medical and
dental insurance for Employee and his dependents.

LIFE INSURANCE. The Company will provide life insurance based upon Employee's
salary or position. The amount of an employee's coverage is four times annual
salary set forth in Section 1.4 of the Employment Agreement, up to a limit of
$600,000.

ACCIDENTAL DEATH AND DISMEMBERMENT (AD&D) INSURANCE. The Company will provide
AD&D insurance for Employee. This program pays a benefit if Employee dies or is
seriously injured as a direct result of an accident. The benefits received vary
according to the nature of the injury and the Employee's salary or position.

SALARY CONTINUATIONS. Salary continuation takes effect after Employee has been
absent from work for more than three continuous weeks due to medical reasons.
Employee earns one month of salary continuation at normal pay up to a maximum of
six months or until LTD insurance begins, whichever occurs first. Certification
by a physician is required prior to any salary continuation payment.

LONG-TERM DISABILITY. Employee is eligible for long-term disability (LTD) after
being accepted by insurance company. LTD payments begin after six months of
disability and are based on a certain portion of normal pay up to a certain
maximum dollar amount per month.<PAGE>

                                                                    EXHIBIT 10.6

                            CLAIMS SERVICE AGREEMENT

This agreement is among the TEXAS FAIR PLAN ASSOCIATION ("Association"), the
FAIR Plan's administrator TEXAS WINDSTORM INSURANCE ASSOCIATION ("TWIA"), and
INSURANCE MANAGEMENT SOLUTIONS, INC.("Servicer"), a corporation authorized to
serve as claims administrator, having a business address at 801 94TH Avenue
North, St. Petersburg, FL 33702. Association, TWIA and Servicer hereby agree
that Servicer will provide claims services to Association and TWIA for claims
ensuing from policies of the Association's Texas Policies of insurance issued
pursuant to Art. 21.49A, TEX. INS. Code and the Association Plan of Operation
according to the following terms and conditions:

1.   EFFECTIVE DATE, TERM, AND CANCELLATION

     This Agreement is effective as of February 17, 2003, and shall continue in
     effect continuously until terminated by either party with sixty (60) days
     written notice to the other party.

2.   OBLIGATIONS OF SERVICER

     The obligations of Servicer under this Agreement are to:

     (A)  Employ properly licensed claims adjusters ("Adjusters") to adjust
          Claims and to exercise its best efforts to ensure that every adjuster,
          investigator, and appraiser, whether an employee of Servicer or a
          third party vendor, is in compliance with every applicable code,
          statute, law or regulation.

     (B)  Use only Texas licensed adjusters and Texas defense attorneys approved
          by the Association or TWIA to investigate, adjust, settle, pay, defend
          or provide legal opinions regarding Claims of the Association and
          otherwise administer Claims, to the extent it deems necessary in
          accordance with its best professional judgment and subject to the
          approval of the Association or TWIA. Servicer may meet its obligation
          by engaging at its discretion and on behalf of Association and TWIA,
          the services of persons or firms other than Servicer and Adjusters,
          provided use of such other persons or firms does not violate any Texas
          statutory or regulatory requirement. Servicer does not have an
          obligation to continually seek approval of Servicer's employees
          involved in the administration of claims under this Agreement however
          the Association or TWIA can request that an employee of Servicer or a
          previously approved third party vendor no longer handle Claims of the
          Association and Servicer will comply with all such reasonable
          requests.

     (C)  With respect to those claims which fall within the authority limit of
          Servicer set forth in Schedule A of this Agreement, Servicer shall:

               .    Determine the amount of any settlement, including Allocated
                    Loss Adjustment Expenses, which should be paid on behalf of
                    Association for all Claims.

                                        1

<PAGE>

               .    In those instances where the policy on which a Claim has
                    been filed contains language subrogating the rights of the
                    insured to the Association, Servicer will pursue collection
                    in accordance with guidelines approved in writing by
                    Association or TWIA; however, if such efforts are not
                    successful Servicer will inform the person or entity alleged
                    to have caused the loss that the matter will be turned over
                    to legal counsel for collection. The Association and TWIA
                    shall have the right of approval of any legal counsel
                    engaged in this respect, and Association shall be
                    responsible for the payment of the additional collection
                    expenses as an Allocated Loss Adjustment Expense, as defined
                    in item 6(A), Definitions.

               .    Make payment for settlement of claims and for Allocated Loss
                    Adjustment Expenses, including attorneys' fees and defense
                    costs, out of funds provided by the Association. Association
                    agrees that Servicer has no obligation to pay or otherwise
                    expend its funds for payment of Claims or Allocated Loss
                    Adjustment Expenses.

               .    Maintain a claim file on each reported Claim at the St.
                    Petersburg, FL office of Servicer. The claim files will be
                    the property of the Association and will be available for
                    inspection by the Association or TWIA upon reasonable
                    notice. Servicer shall store and retain all records produced
                    under this Agreement in accordance with the record retention
                    requirements of the Texas Department of Insurance and
                    accepted industry practice.

               .    Provide statistical or loss experience reports concerning
                    Claim status, Claims services, and Claims payments on a
                    monthly basis containing the content and the format required
                    by the Association or TWIA.

               .    Comply with all other terms of this Agreement.

               .    Maintain reserve amounts set at amounts that reflect the
                    probable cost to close Claims.

               .    Establish and maintain capacity for online Claims review by
                    the Association and TWIA.

               .    Maintain complaint log records in accordance with guidelines
                    provided by the Association and TWIA.

               .    Provide prior written notice of any files to be referred to
                    the Texas Department of Insurance Fraud Unit.

                                       2

<PAGE>

     D    With respect to all Claims which fall outside Servicer's authority
          limit set forth in Schedule A Servicer shall perform all the services
          in C. above, subject however to Servicer's limit of authority, and
          Servicer shall also:

               .    Send to the Association or TWIA a report within 30 days of
                    posting a reserve outside the Servicer's authority limit or
                    of Servicer's determination of the existence of other
                    criteria identifying the Claim as falling outside the
                    authority limit. The report shall be in a format approved by
                    the Association or TWIA.

               .    Send to the Association or TWIA additional information or
                    reports on Claims outside Servicer's authority as the
                    Association or TWIA may require on a case by case basis.

               .    Obtain written authorization for a settlement or payment in
                    excess of the authorized payment amount set out in Schedule
                    A of the Agreement.

3.   OBLIGATIONS OF ASSOCIATION

     The obligations of Association under this Agreement are to:

     (A)  Refer to Servicer all Claims which fall within the terms of this
          Agreement immediately following receipt by the Association or TWIA of
          notice of the Claim.

     (B)  Pay consideration monthly to Servicer in accordance with the terms of
          this Agreement.

     (C)  Maintain sufficient monies with Servicer in the Claim Fund at all
          times so that Servicer may pay Claims and Allocated Loss Adjustment
          Expenses as required.

     (D)  Reimburse the Claim Fund on a daily basis or as needed.

     (E)  Notify reinsurers and others of any Claim required by Association to
          be reported to them for any reason.

     (F)  Pay monthly to Servicer the fees as provided in Schedule A,
          Compensation of Servicer.

     (G)  Comply with all other terms and conditions of this Agreement.

4.   ADMINISTRATIVE PROVISIONS

     (A)  Servicer has full authority and control in all matters pertaining to
          the investigation, adjustment, and administration of Claims covered by
          this Agreement, subject to the ultimate authority of Association or
          TWIA and the Discretionary Settlement Authority Limit.

                                       3

<PAGE>

     (B)  This Agreement is for the sole benefit of the parties. Servicer shall
          not be liable to any person not a party to this Agreement for any
          loss, liability, damage, or expense relating in any way to the
          services provided under this Agreement.

     (C)  Servicer has the right and duty to manage and conserve deposits of
          Association into a Trust account of a standard bank acceptable to the
          Association and TWIA and endorse checks. The Trust Fund is to be used
          by Servicer to pay obligations of the Association, including Claim
          settlements and Allocated Loss Adjustment Expenses. All Association or
          TWIA funds shall be held by Servicer as a fiduciary.

     (D)  Servicer has the right and duty to communicate with any reinsurer
          providing excess coverage (collectively "reinsurers") as required by
          the Association or TWIA. Servicer shall provide information to any
          such reinsurer, including data which relates to any open or closed
          Claim or loss, regardless of whether such Claim or loss involves or
          may involve that reinsurer, provided a full copy of such information
          is simultaneously provided to the Association.

     (E)  The parties agree that the TWIA is entering into this Agreement for
          the limited purposes of: receiving the benefits of the indemnification
          provided by the Servicer hereunder; and acquiring the rights to
          enforce the provisions of this Agreement. The parties further agree
          that the TWIA will have no liability to the Servicer under this
          Agreement.

     (F)  The Association and TWIA have authority to audit the files, business
          records and services of Servicer related to this Agreement. The
          Servicer, during the term of this Agreement and subsequent to any
          termination, unless otherwise instructed by the Association or the
          TWIA in writing, shall retain policy files and other relevant
          documentation in accordance with instructions received from the
          Association or the TWIA for a period not to exceed two years following
          the termination of this Agreement or any renewal or extension thereof.
          The Association shall reimburse the Servicer for its reasonable costs
          of shipment of such files and documentation to the Association or its
          designee.

5.   ESTABLISHMENT OF ACCOUNT

     (A)  Association and TWIA shall open a deposit account at a commercial
          bank.

     (B)  The account shall be closed following termination of this Agreement,
          continuing long enough after contract termination for Servicer to
          responsibly reconcile any outstanding checks and statements. Upon
          termination, all funds in this account shall be distributed to the
          Association.

6.   DEFINITIONS

     (A)  Allocated Loss Adjustment Expense means any cost or expense incurred
          by Servicer on behalf of Association as a result of engaging the
          service of firms or persons other than Servicer and Servicer's
          employees for work in connection with the investigation, adjustment,
          settlement or defense of a Claim. Allocated Loss

                                       4

<PAGE>

          Adjustment Expenses include, but are not limited to the following: all
          costs and expenses associated with subrogation; salvage;
          rehabilitation; medical cost management; property, or other physical
          damage; appraisals by others ; all court costs, fees, and expenses;
          fees for service of process; fees to attorneys; the cost of services
          of undercover operations and detectives; fees of independent adjusters
          for investigation or adjustment of Claims in areas removed from
          reasonable access by Adjusters outside the State of Texas; the cost of
          employing experts for the purpose of preparing maps, photographs,
          diagrams, and chemical or physical analysis, or for expert advice or
          opinion; the cost of obtaining copies of any public records; the costs
          of depositions and court reporters or recorded statements; and
          additional fees associated with adjustment of catastrophe claims.

     (B)  Cancellation means the termination of this Agreement after one party
          has given sixty (60) days prior written notice of cancellation to the
          other party to this Agreement.

     (C)  Claim(s) means any demand for the benefits provided under subject
          Policies of insurance lawfully issued by Association.

     (D)  Claim Fund means the money made available by Association to Servicer
          for use in paying Allocated Loss Adjustment Expenses, Claims, and
          defense costs.

     (E)  Discretionary Settlement Authority Limit means the total amount of
          money specified in Schedule A, item 5 which Association authorizes
          Servicer to spend without seeking prior approval from Association in
          order to settle any single Claim. Such limit may be changed in the
          sole discretion of Association or TWIA without affecting the other
          terms and conditions of this Agreement. Allocated Loss Adjustment
          Expenses and legal costs are subject to, and included in, the
          Discretionary Settlement Limit.

     (F)  Policies means insurance policies of the Association pursuant to Art.
          21.49A, TEX. INS. Code and the Association's Plan of Operation.

7.   GENERAL PROVISIONS

     (A)  Servicer represents and warrants that this Agreement has been duly
          authorized and is binding upon Servicer.

     (B)  This Agreement shall be construed in accordance with the laws of the
          State of Texas and shall inure to and be binding upon the parties
          hereto. Travis County, Texas shall be the venue for any litigation
          arising out of or related to this Agreement.

     (C)  This Agreement constitutes the entire Agreement between the parties.
          No amendments to or modifications of this Agreement shall be valid
          unless made in writing and executed by the parties in the form of an
          amendment to this Agreement.

                                       5

<PAGE>

     (D)  If all or part of any covenant, condition, or other provision of this
          Agreement is declared by a court of competent jurisdiction to be
          invalid and not binding, such declaration shall in no way affect the
          validity of the other remaining covenants, conditions, and provisions
          of this Agreement.

     (E)  Servicer agrees to hold the Association and TWIA, their respective
          Boards and Governing Committee (individually or collectively),
          representatives or employees (the "Indemnified Party" or "Indemnified
          Parties") harmless and agrees to indemnify same from any civil
          penalties, damages, claims, causes of actions, or fines (including
          attorneys fees) imposed, or sought to be imposed against an
          Indemnified Party as a result of Servicer's performance, or failure or
          deficiency of performance of any undertakings, obligations, or actions
          under this Agreement. The foregoing "hold harmless" agreement shall
          not apply to liabilities incurred through the reasonable action or
          inaction of Servicer so long as the course of conduct is undertaken as
          required under the terms of this Agreement or at the express direction
          of the Association and in the good faith belief that Servicer is
          operating in accordance with all applicable laws of Texas, rules of
          the Department and the Plan of Operation of the Association.

     (F)  The Association agrees to hold Servicer harmless and agrees to
          indemnify Servicer from any civil penalties, charges, claims, causes
          of actions, or fines (including attorneys fees) imposed, or sought to
          be imposed against Servicer as a result of the Association's or TWIA's
          failure to perform any of their obligations under this Agreement or
          the performance of Servicer's duties and responsibilities under this
          Agreement or due to actions of Servicer which are at the express
          direction of the Association, TWIA or required by the Plan of
          Operation of the Association.

     (G)  This Agreement may not be assigned by either party without written
          consent of the other party.

     (H)  This Agreement shall be binding and inure to the benefit of the
          parties hereto and their successors and assigns.

     (I)  In the event any provision of this Agreement is contrary to any law or
          regulation governing the parties or their performance under this
          Agreement, such provision shall be modified, if possible, to conform
          to such law or regulation so as to as nearly as possible comply with
          the intent of the parties hereto.

     (J)  This Agreement supersedes all prior agreements between the parties
          hereto concerning the subject matter hereto and all such prior
          agreements shall be of no further force or effect.

     (K)  The headings and subheadings in this Agreement are inserted solely for
          reference purposes and shall have no substantial significance in the
          interpretation of this Agreement.

                                       6

<PAGE>

                                            FAIR PLAN ASSOCIATION

                                            BY: /s/ Jim Oliver
                                                --------------------------------
                                                (Signature)

                                                Jim Oliver, General Manager
                                                (Printed name and title)

                                            TEXAS WINDSTORM INSURANCE
                                            ASSOCIATION

                                            BY: /s/ Jim Oliver
                                                --------------------------------
                                                (Signature)

                                                Jim Oliver, General Manager
                                                (Printed name and title)

                                            Insurance Management Solutions, Inc.

                                            ("SERVICER")

                                            BY: /s/ D.M. Howard
                                                --------------------------------
                                                (Signature)

                                                D.M. Howard, Pres/CEO
                                                (Printed name and title)

                                       7

<PAGE>

                                   SCHEDULE A

                            COMPENSATION OF SERVICER

Claims Administration Fee:

1.   $250.00 for each non-Catastrophe claim file opened, plus applicable sales
     tax.

2.   $210.00 for each Catastrophe claim file opened, plus applicable sales tax.

3.   Catastrophe means an event or series of events that is assigned a unique
     catastrophe number by Property Claims Services.

4.   Claims Administration Fees shall be paid as follows:

     (a)  One-half when the claim file is opened; and

     (b)  One-half when the claim file is closed.

5.   Servicer's discretionary settlement authority limit for comprehensive
     personal liability is $10,000.00 per claim.

     Servicer's discretionary settlement authority limit for property claims is
     $25,000.00 per claim.

                                       8

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00052-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00052-of-00352.parquet"}]]