Document:

<PAGE>

                                                                    EXHIBIT 10.2

        FORM OF EXECUTIVE SEVERANCE AGREEMENT BETWEEN CEPHALON, INC. AND
                               CERTAIN EXECUTIVES

<TABLE>
<CAPTION>
Executive                    Title
---------                    -----
<S>                          <C>
Paul Blake, FRCP             Sr. Vice President, Clinical Research & Regulatory
                             Affairs

J. Kevin Buchi               Sr. Vice President and Chief Financial Officer

Peter E. Grebow, Ph.D        Sr. Vice President, Worldwide Business Development

John E. Osborn, Esq.         Sr. Vice President, General Counsel & Secretary

Robert P. Roche, Jr.         Sr. Vice President, Pharmaceutical Operations

Carl A. Savini               Sr. Vice President, Human Resources

Jeffry L. Vaught, Ph.D       Sr. Vice President and President, Research &
                             Development
</TABLE>

<PAGE>

                          EXECUTIVE SEVERANCE AGREEMENT

         This Severance Agreement is made as of the 25/th/ day of July, 2002 by
and between Cephalon, Inc., a Delaware corporation (the "Company"), and
________________ ("Executive").

         WHEREAS, Executive is an executive of the Company, currently serving as
its _______________________;

         WHEREAS, the Company has determined that appropriate steps should be
taken to, and encourage the attention and dedication of, Executive to his
assigned duties without distraction; and

         WHEREAS, in consideration of Executive's continued employment with the
Company and agreeing to keep Company information confidential and not to compete
with the Company in the event Executive's employment is terminated, the Company
agrees that Executive shall receive the compensation and benefits set forth in
this Agreement as a cushion against the financial and career impact on Executive
in the event Executive's employment with the Company is terminated for a reason
set forth in this Agreement.

         NOW, THEREFORE, in consideration of the foregoing and the mutual
covenants and agreements hereinafter set forth and intending to be legally bound
hereby, the Company and Executive (individually a "Party" and together, the
"Parties") agree as follows:

         1.   Definitions.

                 (a) "Annual Base Salary" shall mean twelve times the greater of
(i) the highest monthly base salary paid or payable (including any base salary
which has been earned but deferred) to the Executive by the Company and its
affiliates (as defined in section 1504 of the Code without regard to subsection
(b) thereof), together with any and all salary reduction authorized amounts
under any of the Company's benefit plans or programs, or (ii) the monthly base
salary paid or payable to the Executive by the Company (including authorized
deferrals, salary reduction amounts and any car allowance) immediately prior to
the Executive's Termination Date.

                 (b) "Annual Bonus" shall mean 100% of Executive's target annual
bonus for the year in which Executive's Termination Date occurs, plus 100% of
any other bonuses Executive receives, or is entitled to receive, during the year
in which Executive's Termination Date occurs, including, but not limited to,
bonuses under the Company's executive special bonus program.

                 (c) "Board" shall mean the Board of Directors of the Company.

<PAGE>

                 (d) "Bonus Multiplier" shall mean the quotient determined by
dividing the total number of months in which the Executive performed services
for the Company during the calendar year in which his Termination Date occurs
divided by 12.

                 (e) "Cause" shall mean Executive has engaged in any act of
unethical conduct, willful misconduct, fraud or embezzlement, any unauthorized
disclosure of confidential information or trade secrets, or any other act that
is materially and demonstrably detrimental to the Company.

                 (f) "Change in Control" shall be deemed to have occurred if any
of the following events occurs:

                           (i)   the direct or indirect acquisition by any
         person or related group of persons (other than the Company or a person
         that directly or indirectly controls, is controlled by, or is under
         common control with, the Company) of beneficial ownership (within the
         meaning of Rule 13d-3 of the Securities Exchange Act of 1934) of
         securities possessing more than thirty percent (30%) of the combined
         voting power of the Company's outstanding securities pursuant to a
         tender or exchange offer made directly to the Company's shareholders
         which the Board does not recommend such shareholders to accept;

                           (ii)  a change in the composition of the Board over a
         period of twenty-four (24) months or less such that a majority of the
         Board members ceases, by reason of one or more contested elections for
         Board membership, to be comprised of individuals who either (x) have
         been Board members continuously since the beginning of such period, or
         (y) have been elected or nominated for election as Board members during
         such period by at least a majority of the Board members described in
         clause (x) who were still in office at the time such election or
         nomination was approved by the Board;

                           (iii) a merger or consolidation in which securities
         possessing more than fifty percent (50%) of the combined voting power
         of the Company's outstanding securities are transferred to a person or
         persons different from the persons holding those securities immediately
         prior to such transaction; or

                           (iv)  the sale, transfer or other disposition of more
         than seventy-five percent (75%) of the Company's assets in a single or
         related series of transactions.

                 (g) "Code" means the Internal Revenue Code of 1986, as amended.

                 (h) "Constructive Termination" means Executive's voluntary
resignation following any of the following events: (i) a change in his position
with the Company or the successor thereto which materially reduces his level of
responsibility; (ii) a reduction in his level of compensation (including base
salary, significant fringe benefits or any non-discretionary and
objective-standard incentive payment or bonus award) by more than ten percent
(10%) in the aggregate; or (iii) a relocation of the Executive's place of
employment by more than fifty (50)

                                      -2-

<PAGE>

miles; provided, however, such change, reduction or relocation is effected by
the Company or the successor thereto without Executive's consent.

                 (i) "Disability" shall mean Executive is, by reason of any
medically determinable physical or mental impairment expected to result in death
or to be of continuous duration of not less than one year, unable to engage in
any substantial gainful employment or service.

                 (j) "Notice of Termination" means a written notice which (i)
indicates the specific termination provision in this Agreement relied upon, and
(ii) briefly summarizes the facts and circumstances deemed to provide a basis
for termination of the Executive's employment under the provision so indicated.

                 (k) "Termination Date" shall mean the last day of Executive's
employment with the Company.

                 (l) "Termination of Employment" shall mean the termination of
Executive's active employment relationship with the Company.

          2.   Termination of Employment Prior to a Change in Control.

                 (a) Termination Prior to a Change of Control. In the event that
Executive's employment with the Company is terminated prior to a Change in
Control on account of an involuntary termination by the Company for any reason
other than Cause, death or Disability, Executive shall be entitled to the
benefits provided in subsection (b) of this Section 2.

                 (b) Compensation Upon Termination Prior to Change in Control.
Subject to the provisions of Section 5 hereof, in the event a termination
described in subsection (a) of this Section 2 occurs, the Company shall pay to
Executive within thirty (30) days after the Termination Date (or the end of the
revocation period for the Release (as defined in Section 5), if later), the
following:

                        (i)  Executive shall receive a lump sum payment equal to
          one and a half (1.5) times Executive's Annual Base Salary at the rate
          in effect immediately before the Executive's Termination Date.

                        (ii) For a period of eighteen (18) months following his
          Termination Date, Executive shall 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
          eighteen (18) month benefit period.

                                      -3-

<PAGE>

                           (iii) To cover the cost of outplacement assistance
         services for Executive provided by an outplacement agency selected by
         Executive in an amount not to exceed $15,000.

                           (iv)  Executive shall receive any amounts earned,
         accrued or owing but not yet paid to Executive as of his Termination
         Date, payable in a lump sum, and any benefits accrued or earned in
         accordance with the terms of any applicable benefit plans and programs
         of the Company.

                 (c) Notice of Termination. Any termination on account of this
Section 2 shall be communicated by a Notice of Termination to the other Parties
hereto given in accordance with Section 18 hereof.

         3.   Termination of Employment on Account of a Change in Control.

                 (a) Termination on Account of a Change in Control. In the event
that Executive's employment with the Company is terminated after, or in
connection with, a Change in Control on account of: (i) an involuntary
termination by the Company following a Change in Control for any reason other
than Cause, death or Disability, (ii) the Executive voluntarily terminates
employment with the Company following a Change in Control on account of a
Constructive Termination, (iii) by the Company (other than for Cause, death or
Disability) prior to or in connection with an anticipated Change in Control at
the request or direction of the acquirer involved in the Change in Control, or
(iv) voluntarily by Executive for any reason (other than for death, Disability,
or under circumstances in which Executive engaged in conduct that would
constitute Cause) during the thirty (30) day period immediately following the
first anniversary of the occurrence of a Change in Control, Executive shall be
entitled to the benefits provided in subsection (b) of this Section 3. If
Executive is entitled to benefits described in subsection (b) of this Section 3
by reason of clause (a)(iii) above, Executive shall be entitled to such benefits
upon his Termination of Employment regardless of whether the Change in Control
actually occurs.

                 (b) Compensation in Connection With a Termination on Account of
a Change in Control. Subject to the provisions of Sections 5 and 12 hereof, in
the event of a termination described in subsection (a) of this Section 3 occurs,
the Company shall pay to Executive within thirty (30) days after the Termination
Date (or, as soon as possible thereafter in the event that the procedures set
forth in Section 12(b) hereof cannot be completed within thirty (30) days, or
the end of the revocation period for the Release (as defined in Section 5), if
later), the following:

                           (i)  Executive shall receive a lump sum payment equal
         to the sum of (x) three (3) times Executive's Annual Base Salary at
         the rate in effect immediately before the Executive's Termination
         Date, (y) three (3) times Executive's Annual Bonus, and (z) the Bonus
         Multiplier times Executive's Annual Bonus.

                           (ii) For a period of thirty-six (36) months following
         his Termination Date, Executive shall 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

                                      -4-

<PAGE>

          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 thirty-six (36) month
          benefit period.

                        (iii)    All stock options and restricted stock held by
          Executive will become fully vested and/or exercisable, as the case may
          be, on the Termination Date, and all stock options shall remain
          exercisable after the Executive's Termination Date as set forth in the
          applicable option agreements with the Company.

                        (iv)     To cover the cost of outplacement assistance
          services for Executive provided by an outplacement agency selected by
          Executive in an amount not to exceed $15,000.

                        (v)      Executive shall receive any amounts earned,
          accrued or owing but not yet paid to Executive as of his Termination
          Date, payable in a lump sum, and any benefits accrued or earned in
          accordance with the terms of any applicable benefit plans and programs
          of the Company.

                 (c) Notice of Termination. Any termination on account of this
Section 3 shall be communicated by a Notice of Termination to the other Parties
hereto in accordance with Section 18 hereof.

          4. Termination of Employment on Account of Disability. Notwithstanding
anything in this Agreement to the contrary, if Executive's employment terminates
on account of Disability, Executive shall be entitled to receive disability
benefits under any disability program maintained by the Company that covers
Executive, and Executive shall not be considered to have terminated employment
under this Agreement and shall not receive benefits pursuant to Sections 2 and 3
hereof.

          5. Release. Notwithstanding the foregoing, no such payments shall be
made unless Executive executes, and does not revoke, the Company's standard
written release (the "Release"), of any and all claims against the Company and
all related parties with respect to all matters arising out of Executive's
employment by the Company (other than any entitlements under the terms of this
Agreement or under any other plans or programs of the Company in which Executive
participated and under which Executive has accrued or become entitled to a
benefit) or the termination thereof.

          6. Other Payments. The payments due under Sections 2 and 3 hereof
shall be in addition to and not in lieu of any payments or benefits due to
Executive under any other plan, policy or program of the Company, including, but
not limited to, benefits required to be provided to him under the terms of his
split dollar life insurance agreement, if any, with the Company, except that no
cash payments shall be paid to Executive under the Company's then current
severance pay policies.

                                      -5-

<PAGE>

     7.  Enforcement.

                 (a) In the event that the Company shall fail or refuse to make
payment of any amounts due Executive under Sections 2, 3 and 6 hereof within the
respective time periods provided therein, the Company shall pay to Executive, in
addition to the payment of any other sums provided in this Agreement, interest,
compounded daily, on any amount remaining unpaid from the date payment is
required under Sections 2, 3 and 6, as appropriate, until paid to Executive, at
the rate from time to time announced by First Union Bank as its "prime rate"
plus 2%, each change in such rate to take effect on the effective date of the
change in such prime rate.

                 (b) It is the intent of the Parties that Executive not be
required to incur any expenses associated with the enforcement of his rights
under Sections 2, 3 and 6 of this Agreement by arbitration, litigation or other
legal action because the cost and expense thereof would substantially detract
from the benefits intended to be extended to Executive hereunder. Accordingly,
the Company shall pay Executive on demand the amount necessary to advance to or
reimburse Executive in full for all expenses (including all attorneys' fees and
legal expenses) incurred by Executive in enforcing any of the obligations of the
Company under this Agreement.

     8.  No Mitigation. Executive shall not be required to mitigate the amount
of any payment or benefit provided for in this Agreement by seeking other
employment or otherwise, nor shall the amount of any payment or benefit provided
for herein be reduced by any compensation earned by other employment or
otherwise.

     9.  Non-Exclusivity of Rights. Except as provided in Section 6, nothing in
this Agreement shall prevent or limit Executive's continuing or future
participation in or rights under any benefit, bonus, incentive or other plan or
program provided by the Company or any of its subsidiaries or affiliates and for
which Executive may qualify.

     10. No Set-Off. The Company's obligation to make the payments provided for
in this Agreement and otherwise to perform its obligations hereunder shall not
be affected by any circumstances, including, without limitation, any set-off,
counterclaim, recoupment, defense or other right which the Company may have
against Executive or others.

     11. Taxes. Any payment required under this Agreement shall be subject to
all requirements of the law with regard to the withholding of taxes, filing,
making of reports and the like, and the Company shall use its best efforts to
satisfy promptly all such requirements.

     12. Certain Increases in Payment.

            (a) Anything in this Agreement to the contrary notwithstanding, in
the event that it shall be determined that any payment or distribution by the
Company to or for the benefit of Executive, whether paid or payable or
distributed or distributable pursuant to the terms of this Agreement or
otherwise (the "Payment"), would constitute an "excess parachute payment" within
the meaning of section 280G of the Code, Executive shall be paid an additional
amount (the "Gross-Up Payment") such that the net amount retained by Executive
after deduction of any excise tax imposed under section 4999 of the Code, and
any federal, state and local income and employment tax and excise tax imposed
upon the Gross-Up Payment shall be equal to the Payment. For purposes of
determining the amount of the Gross-Up Payment, Executive shall be

                                      -6-

<PAGE>

deemed to pay federal income tax and employment taxes at the highest marginal
rate of federal income and employment taxation in the calendar year in which the
Gross-Up Payment is to be made and state and local income taxes at the highest
marginal rate of taxation in the state and locality of Executive's residence
(or, if greater, the state and locality in which Executive is required to file a
nonresident income tax return with respect to the Payment) on the Termination
Date, net of the maximum reduction in federal income taxes that may be obtained
from the deduction of such state and local taxes.

                 (b) All determinations to be made under this Section 12 shall
be made by the Company's independent public accountant immediately prior to the
Change in Control (the "Accounting Firm"), which firm shall provide its
determinations and any supporting calculations both to the Company and Executive
within 10 days of the Termination Date. Any such determination by the Accounting
Firm shall be binding upon the Company and Executive. Within five days after the
Accounting Firm's determination, the Company shall pay (or cause to be paid) or
distribute (or cause to be distributed) to or for the benefit of Executive such
amounts as are then due to Executive under this Agreement.

                 (c) Executive shall notify the Company in writing of any claim
by the Internal Revenue Service that, if successful, would require the payment
by the Company of the Gross-Up Payment. Such notification shall be given as soon
as practicable but no later than ten business days after Executive knows of such
claim and shall apprise the Company of the nature of such claim and the date on
which such claim is requested to be paid. Executive shall not pay such claim
prior to the expiration of the thirty day period following the date on which he
gives such notice to the Company (or such shorter period ending on the date that
any payment of taxes with respect to such claim is due). If the Company notifies
Executive in writing prior to the expiration of such period that it desires to
contest such claim, Executive shall:

                     (i)   give the Company any information reasonably requested
          by the Company relating to such claim;

                     (ii)  take such action in connection with contesting such
          claim as the Company shall reasonably request in writing from time to
          time, including, without limitation, accepting legal representation
          with respect to such claim by an attorney reasonably selected by the
          Company;

                     (iii) cooperate with the Company in good faith in order to
          effectively contest such claim; and

                     (iv)  permit the Company to participate in any proceedings
          relating to such claim;

provided, however, that the Company shall bear and pay directly all costs and
expenses (including additional interest and penalties) incurred in connection
with such contest and shall indemnify and hold Executive harmless, on an
after-tax basis, for any excise tax, income tax or employment tax, including
interest and penalties, with respect thereto, imposed as a result of such
representation and payment of costs and expenses. Without limitation on the
foregoing provisions of this Section 12, the Company shall control all
proceedings taken in connection with

                                      -7-

<PAGE>

such contest and, at its sole option, may pursue or forego any and all
administrative appeals, proceedings, hearing and conferences with the taxing
authority in respect of such claim and may, at its sole option, either direct
Executive to pay the tax claimed and sue for a refund or contest the claim in
any permissible manner, and Executive agrees to prosecute such contest to a
termination before any administrative tribunal, in a court of initial
jurisdiction and in one or more appellate courts, as the Company shall
determine; provided further, however, that if the Company directs Executive to
pay such claim and sue for a refund, the Company shall advance the amount of
such payment to Executive, on an interest-free basis and shall indemnify and
hold Executive harmless, on an after-tax basis, from any excise tax, income tax
or employment tax, including interest or penalties with respect thereto, imposed
with respect to such advance or with respect to any imputed income with respect
to such advance; and provided further that any extension of the statute of
limitations relating to payment of taxes for the taxable year of Executive with
respect to which such contested amount is claimed to be due is limited solely to
such contested amount. Furthermore, the Company's control of the contest shall
be limited to issues with respect to which a Gross-Up Payment would be payable
hereunder and Executive shall be entitled to settle or contest, as the case may
be, any other issue raised by the Internal Revenue Service or any other taxing
authority.

                  (d) If, after the receipt by Executive of an amount advanced
by the Company pursuant to this Section, Executive becomes entitled to receive
any refund with respect to such claim, Executive shall (subject to the Company's
complying with the requirements of this Section) promptly pay to the Company the
amount of such refund (together with any interest paid or credited thereon after
taxes applicable thereto). If, after the receipt by Executive of an amount
advanced by the Company pursuant to this Section, a determination is made that
Executive shall not be entitled to any refund with respect to such claim and the
Company does not notify Executive in writing of its intent to contest such
denial of refund prior to the expiration of thirty days after such
determination, then such advance shall be forgiven and shall not be required to
be repaid and the amount of such advance shall offset, to the extent thereof,
the amount of Gross-Up Payment required to be paid.

                  (e) All of the fees and expenses of the Accounting Firm in
performing the determinations referred to in this Section shall be borne solely
by the Company. The Company agrees to indemnify and hold harmless the Accounting
Firm of and from any and all claims, damages and expenses resulting from or
relating to its determinations pursuant to this Section, except for claims,
damages or expenses resulting from the gross negligence or willful misconduct of
the Accounting Firm.

     13. Confidential Information. Executive shall remain subject to the terms
and conditions of his Employee Confidentiality Agreement, which shall continue
in full force and effect, except as specifically modified herein.

     14. Non-Competition.

                  (a) During the period of Executive's employment by the Company
and, if Executive's employment with the Company terminates for any reason other
that described in Section 3(a) above, for a period of one (1) year thereafter,
except with the written consent of the Board, Executive shall not directly or
indirectly, own, manage, operate, join, control, finance or

                                      -8-

<PAGE>

participate in the ownership, management, operation, control or financing of, or
be connected as an officer, director, employee, partner, principal, agent,
representative, stockholder, consultant, investor or otherwise with, or use or
permit his name to be used in connection with, any person, business or
enterprise which directly or indirectly engages in (i) the development of
compounds, or (ii) the sale or marketing of products, that compete with the
Company's compounds or products (the "Company's Business"). In further
consideration for the Company's promises herein, Executive agrees that for the
period beginning with the termination of his employment with the Company for any
reason other than that described in Section 3(a) above, and for a period of one
(1) year thereafter, Executive will not:

                           (i)  except with the prior written consent of the
         Board, directly or indirectly solicit, entice or induce any customer to
         become a customer of any other person, firm or corporation with respect
         to the Company's Business or to cease doing business with the Company
         or its subsidiaries or affiliates, and that Executive will not approach
         any such person, firm or corporation for such purpose or authorize or
         knowingly approve, encourage or assist the taking of such actions by
         any other person, firm or corporation; or

                           (ii) directly or indirectly solicit, recruit or hire
         any part-time or full-time employee, representative or consultant of
         the Company or its subsidiaries or affiliates to work for a third party
         other than the Company or its subsidiaries or affiliates or engage in
         any activity that would cause any employee, representative or
         consultant to violate any agreement with the Company or its
         subsidiaries or affiliates. The foregoing covenant shall not apply to
         any person after twelve (12) months have elapsed after the date on
         which such person's employment by the Company has terminated.

                  (b) The foregoing restrictions shall not be construed to
prohibit Executive's ownership of less than five percent of any class of
securities of any corporation which is engaged in any of the foregoing
businesses and has a class of securities registered pursuant to the Securities
Exchange Act of 1934, as amended, provided that such ownership represents a
passive investment and that neither Executive nor any group of persons including
Executive in any way, either directly or indirectly, manages or exercises
control of any such corporation, guarantees any of its financial obligations,
otherwise takes any part in its business, other than exercising Executive's
rights as a stockholder, or seeks to do any of the foregoing.

         15.  Equitable Relief.

                  (a) Executive acknowledges that the restrictions contained in
Sections 13 and 14 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 will result in irreparable injury
to the Company. Executive represents that his experience and capabilities are
such that the restrictions contained in Section 14 hereof will not prevent
Executive from obtaining employment or otherwise earning a living at the same
general level of economic benefit as is currently the case. Executive further
represents and acknowledges that (i) he has been advised by the Company to
consult his own legal counsel in respect of this Agreement, and (ii) that he

                                      -9-

<PAGE>

has had full opportunity, prior to execution of this Agreement, to review
thoroughly this Agreement with his counsel.

                  (b) Executive agrees that the Company shall be entitled to
preliminary and permanent injunctive relief, without the necessity of proving
actual damages, as well as an equitable accounting of all earnings, profits and
other benefits arising from any violation of Sections 13 or 14 hereof, which
rights shall be cumulative and in addition to any other rights or remedies to
which the Company may be entitled. In the event that any of the provisions of
Sections 13 or 14 hereof should ever be adjudicated to exceed the time,
geographic, service, or other limitations permitted by applicable law in any
jurisdiction, then such provisions shall be deemed reformed in such jurisdiction
to the maximum time, geographic, service, or other limitations permitted by
applicable law.

                  (c) Executive irrevocably and unconditionally (i) agrees that
any suit, action or other legal proceeding arising out of Section 13 or 14
hereof, including without limitation, any action commenced by the Company for
preliminary and permanent injunctive relief or other equitable relief, may be
brought in the United States District Court for the District of Delaware, or if
such court does not have jurisdiction or will not accept jurisdiction, in any
court of general jurisdiction in Delaware, (ii) consents to the non-exclusive
jurisdiction of any such court in any such suit, action or proceeding, and (iii)
waives any objection which Executive may have to the laying of venue of any such
suit, action or proceeding in any such court. Executive also irrevocably and
unconditionally consents to the service of any process, pleadings, notices or
other papers in a manner permitted by the notice provisions of Section 18
hereof.

         16. Term of Agreement. This Agreement shall continue in full force and
effect for the duration of Executive's employment with the Company; provided,
however, that after the termination of Executive's employment during the term of
this Agreement, this Agreement shall remain in effect until all of the
obligations of the Parties hereunder are satisfied or have expired.

         17. Successor Company. The Company shall require any successor or
successors (whether direct or indirect, by purchase, merger, consolidation or
otherwise) to all or substantially all of the business and/or assets of the
Company, by agreement in form and substance satisfactory to Executive, to
acknowledge expressly that this Agreement is binding upon and enforceable
against the Company in accordance with the terms hereof, and to become jointly
and severally obligated with the Company to perform this Agreement in the same
manner and to the same extent that the Company would be required to perform if
no such succession or successions had taken place. Failure of the Company to
obtain such agreement prior to the effectiveness of any such succession shall be
a breach of this Agreement. As used in this Agreement, the Company shall mean
the Company as herein before defined and any such successor or successors to its
business and/or assets, jointly and severally.

         18. Notice. All notices and other communications required or permitted
hereunder or necessary or convenient in connection herewith shall be in writing
and shall be delivered personally or mailed by registered or certified mail,
return receipt requested, or by overnight express courier service, as follows:

                                      -10-

<PAGE>

                  If to the Company, to:

                               Cephalon, Inc.
                               145 Brandywine Parkway
                               West Chester, PA  19380
                               Attn:_______________

                  With a copy to:

                               Morgan, Lewis & Bockius LLP
                               1701 Market Street
                               Philadelphia, PA 19103-2921
                               Attn: I. Lee Falk, Esquire

                  If to Executive, to:

                               ____________
                               ____________
                               ____________

or to such other names or addresses as the Company or Executive, as the case may
be, shall designate by notice to the other Parties hereto in the manner
specified in this Section; provided, however, that if no such notice is given by
the Company following a change in control, notice at the last address of the
Company or to any successor pursuant to this Section 18 shall be deemed
sufficient for the purposes hereof. Any such notice shall be deemed delivered
and effective when received in the case of personal delivery, five days after
deposit, postage prepaid, with the U.S. Postal Service in the case of registered
or certified mail, or on the next business day in the case of overnight express
courier service.

     19. Governing Law. This Agreement shall be governed by and interpreted
under the laws of the State of Delaware without giving effect to any conflict of
laws provisions.

     20. Contents of Agreement, Amendment and Assignment.

             (a) This Agreement supersedes all prior agreements, sets forth the
entire understanding between the Parties hereto with respect to the subject
matter hereof and cannot be changed, modified, extended or terminated except
upon written amendment executed by Executive and executed on the Company's
behalf by a duly authorized officer. The provisions of this Agreement may
provide for payments to Executive under certain compensation or bonus plans
under circumstances where such plans would not provide for payment thereof. It
is the specific intention of the Parties that the provisions of this Agreement
shall supersede any provisions to the contrary in such plans, and such plans
shall be deemed to have been amended to correspond with this Agreement without
further action by the Company or the Board.

                                      -11-

<PAGE>

             (b) Nothing in this Agreement shall be construed as giving
Executive any right to be retained in the employ of the Company, or as changing
or modifying the "at will" nature of Executive's employment status.

             (c) All of the terms and provisions of this Agreement shall be
binding upon and inure to the benefit of and be enforceable by the respective
heirs, representatives, successors and assigns of the Parties hereto, except
that the duties and responsibilities of Executive and the Company hereunder
shall not be assignable in whole or in part by the Company. If Executive should
die after his Termination Date and while any amount payable hereunder would
still be payable to Executive hereunder if Executive had continued to live, all
such amounts, unless otherwise provided herein, shall be paid in accordance with
the terms of this Agreement to Executive's devises, legates or other designees
or, if there is no such designee, to Executive's estate.

     21. Severability. If any provision of this Agreement or application thereof
to anyone or under any circumstances shall be determined to be invalid or
unenforceable, such invalidity or unenforceability shall not affect any other
provisions or applications of this Agreement which can be given effect without
the invalid or unenforceable provision or application.

     22. Remedies Cumulative; No Waiver. No right conferred upon the Parties by
this Agreement is intended to be exclusive of any other right or remedy, and
each and every such right or remedy shall be cumulative and shall be in addition
to any other right or remedy given hereunder or now or hereafter existing at law
or in equity. No delay or omission by a Party in exercising any right, remedy or
power hereunder or existing at law or in equity shall be construed as a waiver
thereof.

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

                                      -12-

<PAGE>

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

                                 CEPHALON, INC.

Attest:  ____________________    By:  __________________________

                                 Its: __________________________

_____________________________    _______________________________
Witness                          EXECUTIVE

                                      -13-Prepared by R.R. Donnelley Financial -- Third Kingsville Dome & Rosita Mines Agreement

  Exhibit 10.21
 Third Kingsville Dome and Rosita Mines Agreement
 This Agreement is entered into by the Texas Natural Resource Conservation Commission (“TNRCC”), the Texas Department of Health (“TDH”), URI, Inc. (“URI”), and the
United States Fidelity & Guaranty Company (“USF&G”) for the period from May 1, 2002 to November 30, 2002.
 Recitals
 A. URI is the owner and operator of the Kingsville Dome and Rosita Mines located in Kleberg and Duval Counties, Texas, respectively.
 B. The following
are the outstanding Bonds issued by USF&G on behalf of the Kingsville Dome and Rosita Mines to provide assurance that funds will be available when needed for groundwater restoration, decommissioning, and, if applicable, for the long term care
of the facility. By this Agreement, the Agencies agree that they cannot enforce in excess of the amounts set forth below against USF&G:
 On June 23, 2000, USF&G issued to TDH
on behalf of the Kingsville Dome Mine the Surety Bond Rider to Performance Guarantee Bond (Bond No. 41-0130-40028-96-6) that has been in effect since December 2. 1996, in the penal sum of One Million Seven Hundred Forty One Thousand Five Hundred
Forty Two Dollars ($1,741,542.00). The agencies acknowledge their continued obligations under the Second Kingsville Dome and Rosita Mines Agreement with respect to the reduction of outstanding bond amounts, if any.
 On June 23, 2000, USF&G issued to TDH on behalf of the Rosita Mine the Surety Bond Rider to Performance Guarantee Bond (Bond No. 41-0130-40040-96-6) that has been in effect since November 26, 1996, in the penal
sum of One Million Nine Hundred Nine Thousand Six Hundred Forty Three Dollars ($1,909,643.00). The agencies acknowledge their continued obligations under the Second Kingsville Dome and Rosita Mines Agreement with respect to the reduction of
outstanding bond amounts, if any.
 C. URI, to induce USF&G, as Surety, to execute the Bonds on behalf of URI, executed and delivered a Master Surety Agreement for the benefit of
Surety, dated November 25, 1996, pursuant to which URI, agreed to exonerate, hold harmless, indemnify and keep indemnified USF&G from and against any and all demands, claims, liabilities, losses and expenses of whatsoever kind or nature
(including but not limited to, interest, court costs and counsel fees) imposed upon, sustained, or incurred by USF&G by reason of: (1) USF&G having executed, provided or procured Bonds in behalf of URI, Inc., or (2) URI, Inc.’s
failure to perform or comply with any of the provisions of the Master Surety Agreement. By this document, URI, Inc. reaffirms its indemnity obligations under the Master Surety Agreement.
 D. This Agreement is entered by USF&G and the Agencies at the request of URI, which has acknowledged that it is financially unable to meet its obligations to continue groundwater restoration of the Kingsville Dome and Rosita Mines
without this Agreement. This Agreement does not replace or supersede any licenses, permits, or regulatory requirements already in place. It is not intended that the terms of this Agreement affect or change the responsibilities of TDH and TNRCC as
set forth in the Memorandum of Understanding between the agencies found at 25 TAC Sec. 289.101(f).
 E. USF&G may have certain defenses to claims made under the Bonds, and it
expressly reserves any and all defenses it may have or hereinafter acquire.
 F. The purpose of this Agreement is, variously, to (1) protect the public health and environment by
facilitating the implementation and continuation of groundwater restoration of the Mines; (2) provide a mechanism for USF&G to receive an equivalent reduction in the penal sum of its liability under the Bonds in consideration of
USF&G’s funding of groundwater restoration costs of the Mines.
 Now, therefore, the parties agree as follows:
 1. Incorporation. The above Recitals are hereby incorporated into this Agreement.
 
 E-3
 

  2. Definitions. The following terms shall have the meanings defined below:
 2.1
“Agencies” means collectively TNRCC and TDH.
 2.2 “Bonds” means the Bonds described in Recital B.
 2.3 “Restoration Costs” means any reasonable costs directly associated with or necessary for groundwater restoration activities at the Mines. Costs that would not be allowed for bond reduction include, but are not limited
to: salaries of personnel for time not directly relating to groundwater restoration at the Kingsville Dome and Rosita mines; travel to or activities regarding other URI sites; general and administrative costs; bond premiums, property taxes,
byproduct disposal costs, license fees, insurance and other holding costs; legal costs; costs of contesting TNRCC or TDH actions; and/or costs for the resumption of production operations.
 2.4 “Effective Date” means the date on which this Agreement has been executed by all of the parties.
 2.5 “Mines” means the Kingsville Dome Mine and the
Rosita Mine.
 2.6 “Surety” means United States Fidelity & Guaranty Company.
 2.7 “TDH” means the
Texas Department of Health.
 2.8 “TNRCC” means the Texas Natural Resource Conservation Commission.
 2.9
“URI” means URI, Inc.
 2.10 “USF&G” means the United States Fidelity & Guaranty Company.
 3. Funding of Operations. USF&G agrees, subject to the provisions contained herein, to fund reasonable restoration costs at the Kingsville Dome Mine and Rosita Mine as enumerated in Appendix A, attached to and by this reference
incorporated in this Agreement. In no case will funding by USF&G exceed $1.25 per thousand gallons of restoration water processed through reverse osmosis filtration equipment and in no case will funding by USF&G exceed the USF&G
monthly reimbursement amounts found in Appendix A. The remainder of restoration expenses shall be borne by funds provided by URI’s investor group that are specifically designated for restoration as enumerated in Appendix A. In the event URI is
able to secure funds outside of USF&G, other than funds provided by URI’s investor group that are specifically designated for general and administrative costs and/or for the resumption of production operations, URI will notify the TDH and
TNRCC for a determination if these funds should be used to substitute or supplement funding by USF&G. If the TDH and TNRCC determine that these funds should be used to substitute or supplement funding by USF&G and URI does not do so, TDH
and TNRCC may terminate this Agreement and USF&G will not provide further funds to URI thereafter.
 4. Period of Funding/Term of Agreement. This Agreement shall remain in
force and effect from its effective date until November 30, 2002. In the event URI fails to meet the Performance Criteria set forth in Appendix B for a specific month and such Performance Criteria are not waived by the Agencies, the Agencies may
terminate the Agreement with 10 days notice to URI. If the Agencies terminate the Agreement they shall notify USF&G of such action. This notification shall occur within 24 hours upon termination of the Agreement, and will be effective upon
receipt by USF&G.
 5. Force Majeure. URI shall not be deemed as failing to meet the Performance Criteria for a specific month due to any Act of God, war, strike, riot,
electrical outage, accident, fire, explosion, flood, blockade, or other catastrophe hereafter “force majeure,” beyond URI’s reasonable-control. In the event of such force majeure, URI shall notify the Agencies of the event within 24
hours. Should such force majeure prevent or reduce groundwater restoration activities for the subsequent month, then the Agencies may terminate the Agreement with 10 days notice to URI.
 6. Record Keeping. URI shall include a summary of reverse osmosis unit operating data including the amount of gallons processed during a month in the monthly performance reports to the Agencies. URI will
 
 E-4
 

  maintain complete records of reasonable expenditures made during the term of this Agreement and will make those records available upon request from the Agencies
for auditing purposes.
 URI shall maintain and make available to the Agencies upon request, records of its groundwater restoration activities at the Mines. These records shall include:
1) accurate and legible maps of well fields and well locations; and 2) accurate and up to date well completion and maintenance information.
 7. Progress Reports, Bond Reduction and
Future Payments to URI, Inc. On June 14, 2002 and each month thereafter as set forth in Appendix C, TDH will provide USF&G with a written bond reduction notice (“bond reduction notice”) in the format attached hereto as Appendix D.
It is agreed by TDH that it will issue the bond notice reduction within 10 working days following the end of the month contingent upon receiving USF&G’s certification of monthly advances to URI. The failure to do so shall constitute a
material breach of this Agreement for which USF&G would thereafter have no further obligation to provide any further funding pursuant to this Agreement.
 The bond reduction notice
will reduce the penal amount of the bonds on a dollar for dollar basis for restoration costs paid during the previous period. Penal sum reductions will be allocated to the appropriate bonds for the appropriate projects. Under no circumstance will
the bond reduction for a preceding particular month exceed the USF&G monthly reimbursement amounts found in Appendix A.
 URI shall provide a monthly groundwater restoration
progress report in accordance with Appendix B, to the Agencies for each month no later than the 10th working day of the following month. The TDH shall notify URI and USF&G of the appropriate monthly bond adjustment. Failure to perform on the
part of URI shall mean the failure to meet the Performance Criteria in Appendix B. If the Agencies, with good cause, disapprove URI’s performance, the TDH may adjust the next month’s bond reduction amount. At the conclusion of the last
month or at termination of the Agreement under section 4, the Agencies shall not reduce the bond amount until they have completed the performance and financial reviews of the last month’s data. Under no circumstances will the Agencies reduce
the bond amounts in excess of $1.25 per 1000 gallons of groundwater at each mine actually processed through the reverse osmosis filtration equipment or in excess of the USF&G monthly reimbursement amounts found in Appendix A.
 8. Reconciliation of Expenses. Upon receipt of a monthly performance or progress report, the Agencies may review all costs and expenditures. The Agencies may require additional information
from URI regarding expenses. No expenses in excess of $1.25 per thousand gallons of restoration groundwater processed through reverse osmosis filtration equipment, up to the maximum amount enumerated in the USF&G monthly reimbursement amounts
found in Appendix A, will be reimbursed under this Agreement.
 9. Periodic Reporting by USF&G. Contemporaneously with funding, USF&G will provide to TNRCC and TDH a
certification of monthly advances under this Agreement to URI by the end of each month.
 10. Surety Not an Owner or Operator. USF&G shall not be an “owner” or
“operator” of the Mines by virtue of execution and delivery of and performance of its obligations under this Agreement. The parties’ execution and delivery of this Agreement is not intended to make USF&G an “owner” or
“operator.” USF&G’s role as Surety will not in any way make it responsible for any operation of the Mines, nor will it own any part of the Mines.
 11. Agencies
not an Owner or Operator. TNRCC or TDH shall not be an “owner” or “operator” of the Mines by virtue of execution and delivery of and performance of their obligations under this Agreement. The parties’ execution and
delivery of this Agreement is not intended to make TNRCC or TDH an “owner” or “operator.” TNRCC’s or TDH’s role in approving bond reductions will not in any way make it responsible for any operation of the Mines, nor
will it own any part of the Mines.
 12. Reservation of Defenses. USF&G’s execution, delivery and performance under this Agreement shall not constitute, nor be deemed to
constitute, an admission of liability or a waiver of any claims or defenses which USF&G may assert or have against URI, Inc., any indemnitors, or against claims made against USF&G under the Bond. The Agencies’ execution, delivery or
performance under this Agreement shall not constitute, nor be deemed to constitute, an admission of liability or waiver of any claims or defenses which the Agencies may assert or have against URI, Inc. relative to the Kingsville Dome and/or Rosita
Mines, or USF&G.
 
 E-5
 

  13. Bankruptcy of URI.
 13.1 It is the express desire, intent, and agreement of the parties (TNRCC/TDH, URI and
USF&G) that in the event URI shall become a Debtor in a bankruptcy proceeding (by virtue of either the commencement of a voluntary or an involuntary petition) the rights of TNRCC/TDH and USF&G shall remain as unaffected as possible with
respect to their mutual obligations under these Bonds. Accordingly, as a material element of this Agreement, the parties expressly agree and covenant as follows:
 13.2. URI will enter into a
Stipulation satisfactory to TNRCC/TDH and USF&G setting forth sufficient facts to demonstrate its acknowledgment that the parties would not have entered into this Agreement absent such stipulation. The Stipulation shall further recite that,
should URI become a Debtor in a Chapter 11 bankruptcy proceeding, it shall elect at the earliest of (1) sixty (60) days from the Petition date or (2) thirty (30) days from the entry of the Order for Relief in the instance where an involuntary
petition is commenced to assume or reject this Agreement as an executory contract.
 13.3. URI and USF&G further agree that they shall take no action directly or indirectly to prevent the
Bankruptcy Court from ordering URI to make such an accelerated election regarding assumption or rejection of this Agreement in accordance with the time frame set forth above in paragraph 13.2.
 13.4. In the event URI elects to assume this executory contract, URI shall cure any pending defaults within 30 days of the date it makes said election to assume (irrespective of the date of the entry of the Order approving assumption). In
the event the Bonds are called, USF&G shall be entitled to a full credit against the face amount of the Bonds for any partial payments distributed previously to URI in accordance with this Agreement.
 13.5. In the event URI elects to reject this executory contract, the parties agree that each will have whatever rights and obligations they have under this Agreement, the Bonds, and applicable law.
 13.6. All parties further acknowledge that the obligation of USF&G under these Bonds constitutes an independent obligation of USF&G as a surety in favor of TNRCC/TDH. URI further covenants that in its legal opinion, should URI
become a debtor in a bankruptcy proceeding, that these Bonds constitute independent obligations of USF&G and would not constitute assets of URI’s bankruptcy estate. URI further covenants that it shall take no action either directly or
indirectly to controvert any position taken in the Bankruptcy Court by TNRCC/TDH that these Bonds are not property of URI’s bankruptcy estate.
 13.7. URI and USF&G acknowledge that there
have been extensive confidential settlement communications, privileged under Federal Rule of Evidence 408, leading up to the execution of this Agreement. URI, USF&G, and TNRCC/TDH further covenant that they shall never seek to introduce
evidence of any prior negotiations that led up to this Agreement (by way of example but not by limitation, introduction of previous drafts of this settlement Agreement as parole evidence).
 13.8 In
the event of the bankruptcy of URI, the parties to this Agreement stipulate that the groundwater restoration equipment located at the Kingsville Dome and Rosita mines may continue to be used for groundwater restoration activities until the
groundwater restoration is completed.
 14. Notices.  Any notices required or authorized to be given by this Agreement shall be in written form. Any notices required or authorized to be
given by this Agreement must be sent by: (a) registered or certified delivery mail, postage prepaid and return receipt requested, addressed to the proper party at the following address or such address as the party shall have designated to the other
parties in accordance with this Section; or (b) personal delivery. Mailed notice shall be effective on the third (3rd) day following the date of mailing. Personal delivery shall be effective on the date of receipt. Notices shall be mailed to the
following:

	 	Mr. Jeffrey A. Saitas
Executive Director
Texas Natural Resource Conservation Commission
PO Box 13087
Austin, TX 78711-3087

 
 E-6
 

	 	Mr. Richard Ratliff, P.E.
	 	Texas Department of Health
	 	Chief Bureau of Radiation Control
	 	1100 West 49th Street
	 	Austin, TX 78756
	 
	 	United States Fidelity & Guaranty Company
	 	c/o St. Paul Surety-Claim (MC41)
	 	Matthew L. Silverstein, Esquire
	 	5801 Smith Avenue
	 	Baltimore, MD 21209
	 
	 	Mark S. Pelizza
	 	URI, Inc.
	 	650 S. Edmonds Lane
	 	Suite 108
	 	Lewisville, Texas 75067
	 
	 	Alfred C. Chidester-Corporate Counsel
	 	c/o Baker & Hostetler
	 	303 E. 17th Ave., Ste. 1100
	 	Denver, Colorado 80203-1264
	 
	and copy to:	 
	 	R. Kinnan Golemon 
	 	Brown McCarroll, L.L.P.
	 	111 Congress Ave., Ste. 1400
	 	Austin, Texas 78701-4043

 
 15. Binding Effect of Obligations.  This Agreement shall be binding upon and
inure to the benefit of the respective parties and their successors and assigns.
 16. Whole Agreement.  There are no terms or conditions of this Agreement, express or
implied, other than expressly stated in this Agreement. This Agreement may be amended or modified only by an instrument in writing, signed by the parties with the same formality as this Agreement. This Agreement shall not be construed or interpreted
to be for the benefit of any third party, and no third party shall have the right to enforce this Agreement without the consent of all of the parties.
 17. Multiple
Counterparts.  This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original, but all of which shall constitute the same Agreement. Delivery of an executed copy of this Agreement via
facsimile or other electronic transmission shall be deemed effective delivery.
 18. Severability.  If any part, term or provision of this Agreement is held by a court
of competent jurisdiction to be illegal or in conflict with any law of the United States or the State of Texas, the validity of the remaining portions or provisions shall not be affected, and the rights and obligations of the parties shall be
construed and enforced as if the Agreement did not contain the particular part, term or provision held to be invalid.
 19. Governing Law.  This Agreement shall be
construed and enforced in accordance with and governed by the laws of the United States and the State of Texas to the extent that such laws do not conflict with the laws of the United States. Nothing in this Agreement shall relieve URI of its
obligations under the rules and regulations of TNRCC or TDH or from the requirements of TNRCC Permits UR02827, WDW 248, UR02880, WDW 250, or TDH License L03653.
 20.
Dates.  Any date that falls on a weekend or a State of Texas holiday shall mean the next regular State of Texas business day following that date.
 
 E-7

  The parties have executed this Agreement effective as of May 1, 2002.
 

	                                      
                  	                                      
                  
	Jeffrey A. Saitas, P.E., Executive Director
Texas Natural Resource Conservation Commission	 	Richard Ratliff, P.E., Chief
Bureau of Radiation Control
Texas Department of Health
	 
	 
	 
	                                      
                  	                                      
                  
	Paul K. Willmott, President
and Chief Executive Officer, URI, Inc.	 	Matthew L. Silverstein, Surety Attorney
United States Fidelity and Guaranty

 
 E-8

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00042-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00042-of-00352.parquet"}]]