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EXHIBIT 10.34
                            INTRANET SOLUTIONS, INC.
                       2000 EMPLOYEE STOCK INCENTIVE PLAN

     1.  PURPOSE. The purpose of this 2000 Employee Stock Incentive Plan (the
"Plan") is to motivate key personnel to produce a superior return to the
shareholders of IntraNet Solutions, Inc. (the "Company") and its Affiliates by
offering such individuals an opportunity to realize Stock appreciation, by
facilitating Stock ownership, and by rewarding them for achieving a high level
of corporate performance. This Plan is also intended to facilitate recruiting
and retaining key personnel of outstanding ability.

     2.  DEFINITIONS. The capitalized terms used in this Plan have the meanings
set forth below.

         (a) "Affiliate" means any corporation that is a "parent corporation" or
     "subsidiary corporation" of the Company, as those terms are defined in
     Sections 424(e) and (f) of the Code, or any successor provision, and any
     joint venture in which the Company or any such "parent corporation" or
     "subsidiary corporation" owns an equity interest.

         (b) "Agreement" means a written contract entered into between the
     Company or an Affiliate and a Participant containing the terms and
     conditions of an Award in such form (not inconsistent with this Plan) as
     the Committee approves from time to time, together with all amendments
     thereof, which amendments may be unilaterally made by the Company (with the
     approval of the Committee) unless such amendments are deemed by the
     Committee to be materially adverse to the Participant and are not required
     as a matter of law.

         (c) "Award" means a grant made under this Plan in the form of Options,
     Stock Appreciation Rights, Restricted Stock, Performance Shares or any
     Other Stock-Based Award.

         (d) "Board" means the Board of Directors of the Company.

         (e) "Change in Control" means:

             (i)   a majority of the directors of the Company shall be persons
                   other than persons

                   (A)  for whose election proxies shall have been solicited by
                        the Board or

                   (B)  who are then serving as directors appointed by the Board
                        to fill vacancies on the Board caused by death or
                        resignation (but not by removal) or to fill newly-
                        created directorships,

               (ii) 30% or more of the (1) combined voting power of the then
                    outstanding voting securities of the Company entitled to
                    vote generally in the election of directors ("Outstanding
                    Company Voting Securities") or (2) the then outstanding
                    Shares of Stock ("Outstanding Company Common Stock") is
                    directly or indirectly acquired or beneficially owned (as
                    defined in Rule 13d-3 under the Exchange Act, or any
                    successor rule thereto) by any individual, entity or group
                    (within the meaning of Section 13(d)(3) or 14(d)(2) of the
                    Exchange Act), provided, however, that the following
                    acquisitions and beneficial ownership shall not constitute
                    Changes in Control pursuant to this paragraph 2(e)(ii):

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                   (A)  any acquisition or beneficial ownership by the Company
                        or a Subsidiary, or

                   (B)  any acquisition or beneficial ownership by any employee
                        benefit plan (or related trust) sponsored or maintained
                        by the Company or one or more of its Subsidiaries,

                   (C)  any acquisition or beneficial ownership by the
                        Participant or any group that includes the Participant,
                        or

                   (D)  any acquisition or beneficial ownership by a Parent or
                        its wholly-owned subsidiaries, as long as they shall
                        remain wholly-owned subsidiaries, of 100% of the
                        Outstanding Company Voting Securities as a result of a
                        merger or statutory share exchange which complies with
                        paragraph 2(e)(iii)(A)(2) or the exception in paragraph
                        2(e)(iii)(B) hereof in all respects,

             (iii) the shareholders of the Company approve a definitive
                   agreement or plan to

                   (A)  merge or consolidate the Company with or into
                        another corporation (other than (1) a merger or
                        consolidation with a Subsidiary or (2) a merger in which

                        (a)  the Company is the surviving corporation,

                        (b)  no Outstanding Company Voting Securities or
                             Outstanding Company Common Stock (other than
                             fractional shares) held by shareholders of the
                             Company immediately prior to the merger is
                             converted into cash, securities, or other property
                             (except (i) voting stock of a Parent owning
                             directly or indirectly through wholly-owned
                             subsidiaries, both beneficially and of record 100%
                             of the Outstanding Company Voting Securities
                             immediately after the Merger or (ii) cash upon the
                             exercise by holders of Outstanding Company Voting
                             Securities of statutory dissenters' rights),

                        (c)  the persons who were the beneficial owners,
                             respectively, of the Outstanding Company Voting
                             Securities and Outstanding Company Common Stock
                             immediately prior to such merger beneficially own,
                             directly or indirectly, immediately after the
                             merger, more than 70% of, respectively, the then
                             outstanding common stock and the voting power of
                             the then outstanding voting securities of the
                             surviving corporation or its Parent entitled to
                             vote generally in the election of directors, and

                        (d)  if voting securities of the Parent are exchanged
                             for Outstanding Company Voting Securities in the
                             merger, all holders of any class or series of
                             Outstanding Company Voting Securities immediately
                             prior to the merger have the right to receive
                             substantially the same per share consideration in
                             exchange for their Outstanding Company Voting
                             Securities as all other holders of such class or
                             series),

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                   (B)  exchange, pursuant to a statutory share exchange,
                        Outstanding Company Voting Securities of any one or more
                        classes or series held by shareholders of the Company
                        immediately prior to the exchange for cash, securities
                        or other property, except for (a) voting stock of a
                        Parent owning directly, or indirectly through
                        wholly-owned subsidiaries, both beneficially and of
                        record 100% of the Outstanding Company Voting Securities
                        immediately after the statutory share exchange if (i)
                        the persons who were the beneficial owners,
                        respectively, of the Outstanding Company Voting
                        Securities and Outstanding Company Common Stock
                        immediately prior to such statutory share exchange own,
                        directly or indirectly, immediately after the statutory
                        share exchange more than 70% of, respectively, the then
                        outstanding common stock and the voting power of the
                        then outstanding voting securities of such Parent
                        entitled to vote generally in the election of directors,
                        and (ii) all holders of any class or series of
                        Outstanding Company Voting Securities immediately prior
                        to the statutory share exchange have the right to
                        receive substantially the same per share consideration
                        in exchange for their Outstanding Company Voting
                        Securities as all other holders of such class or series
                        or (b) cash with respect to fractional shares of
                        Outstanding Company Voting Securities or payable as a
                        result of the exercise by holders of Outstanding Company
                        Voting Securities of statutory dissenters' rights,

                   (C)  sell or otherwise dispose of all or substantially
                        all of the assets of the Company (in one transaction or
                        a series of transactions), or

                   (D)  liquidate or dissolve the Company,

               except that it shall not constitute a Change in Control with
               respect to any Participant if a majority of the voting stock (or
               the voting equity interest) of the surviving corporation or its
               parent corporation or of any corporation (or other entity)
               acquiring all or substantially all of the assets of the Company
               (in the case of a merger, consolidation or disposition of assets)
               or the Company or its Parent (in the case of a statutory share
               exchange) is, immediately following the merger, consolidation,
               statutory share exchange or disposition of assets, beneficially
               owned by the Participant or a group of persons, including the
               Participant, acting in concert.

         (f)   "Code" means the Internal Revenue Code of 1986, as amended and in
     effect from time to time, or any successor statute.

         (g)   "Committee" means three or more directors designated by the Board
     to administer this Plan under Section 3 hereof; provided that if no
     Committee is designated by the Board, the Board shall constitute the
     Committee.

         (h)   "Company" means IntraNet Solutions, Inc., a Minnesota
     corporation, or any successor to all or substantially all of its businesses
     by merger, consolidation, purchase of assets or otherwise.

         (i)   "Disability" means the disability of a Participant such that the
     Participant is considered disabled under any retirement plan of the Company
     which is qualified under Section 401 of the Code, or as otherwise
     determined by the Committee.

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         (j)   "Employee" means any full-time or part-time employee of the
     Company or an Affiliate. For purposes of this Plan, the term "Employee"
     shall not include persons who are officers or directors of the Company.

         (k)   "Exchange Act" means the Securities Exchange Act of 1934, as
     amended.

         (l)   "Fair Market Value" as of any date means, unless otherwise
     expressly provided in this Plan:

               (i)  the closing sale price of a Share (A) on the National
         Association of Securities Dealers, Inc. Automated Quotation System
         National Market System, or (B) if the Shares are not traded on such
         system, on the composite tape for New York Stock Exchange ("NYSE")
         listed shares, or (C) if the Shares are not quoted on the NYSE
         composite tape, on the principal United States securities exchange
         registered under the Exchange Act on which the Shares are listed, in
         any case on the date immediately preceding that date, or, if no sale
         of Shares shall have occurred on that date, on the next preceding day
         on which a sale of Shares occurred, or

               (ii) if clause (i) is not applicable, what the Committee
         determines in good faith to be 100% of the fair market value of a
         Share on that date.

         However, if the applicable securities exchange or system has closed for
     the day at the time the event occurs that triggers a determination of Fair
     Market Value, all references in this paragraph to the "date immediately
     preceding that date" shall be deemed to be references to "that date." The
     determination of Fair Market Value shall be subject to adjustment as
     provided in Section 12(f) hereof.

         (m)   "Fundamental Change" means a dissolution or liquidation of the
     Company, a sale of substantially all of the assets of the Company, a merger
     or consolidation of the Company with or into any other corporation,
     regardless of whether the Company is the surviving corporation, or a
     statutory share exchange involving capital stock of the Company.

         (n)   "Other Stock-Based Award" means an Award of Stock or an Award
     based on Stock other than Options, Stock Appreciation Rights, Restricted
     Stock or Performance Shares.

         (o)   "Option" means a right to purchase Stock.

         (p)   "Parent" means a "parent corporation", as that term is defined in
     Section 424(e) of the Code, or any successor provision.

         (q)   "Participant" means an Employee to whom an Award is made.

         (r)   "Performance Period" means the period of time as specified in an
     Agreement over which Performance Shares are to be earned.

         (s)   "Performance Shares" means a contingent award of a specified
     number of Performance Shares, with each Performance Share equivalent to one
     Share, a variable percentage of which may vest depending upon the extent of
     achievement of specified performance objectives during the applicable
     Performance Period.

         (t)   "Plan" means this 2000 Employee Stock Incentive Plan, as amended
     and in effect from time to time.

         (u)   "Restricted Stock" means Stock granted under Section 10 hereof so
     long as such Stock remains subject to one or more restrictions.

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         (v)   "Retirement" means termination of employment on or after age 55,
     provided the Employee has been employed by the Company and/or one or more
     Affiliates for at least ten years, or termination of employment on or after
     age 62, provided in either case that the Employee has given the Company at
     least six months' prior written notice of such termination, or as otherwise
     determined by the Committee.

         (w)   "Share" means a share of Stock.

         (x)   "Stock" means the common stock of the Company.

         (y)   "Stock Appreciation Right" means a right, the value of which is
     determined relative to appreciation in value of Shares pursuant to an Award
     granted under Section 8 hereof.

         (z)   "Subsidiary" means a "subsidiary corporation," as that term is
     defined in Section 424(f) of the Code, or any successor provision.

         (aa)  "Successor" with respect to a Participant means the legal
     representative of an incompetent Participant and, if the Participant is
     deceased, the legal representative of the estate of the Participant or the
     person or persons who may, by bequest or inheritance, or under the terms of
     an Award or of forms submitted by the Participant to the Committee under
     Section 12(i) hereof, acquire the right to exercise an Option or Stock
     Appreciation Right or receive cash and/or Shares issuable in satisfaction
     of an Award in the event of a Participant's death.

         (bb)  "Term" means the period during which an Option or Stock
     Appreciation Right may be exercised or the period during which the
     restrictions placed on Restricted Stock or any other Award are in effect.

         Except when otherwise indicated by the context, reference to the
     masculine gender shall include, when used, the feminine gender and any term
     used in the singular shall also include the plural.

     3.  ADMINISTRATION.

         (A)   AUTHORITY OF COMMITTEE. The Committee shall administer this Plan.
     The Committee shall have exclusive power to make Awards and to determine
     when and to whom Awards will be granted, and the form, amount and other
     terms and conditions of each Award, subject to the provisions of this Plan.
     The Committee may determine whether, to what extent and under what
     circumstances Awards may be settled, paid or exercised in cash, Shares or
     other Awards or other property, or canceled, forfeited or suspended. The
     Committee shall have the authority to interpret this Plan and any Award or
     Agreement made under this Plan, to establish, amend, waive and rescind any
     rules and regulations relating to the administration of this Plan, to
     determine the terms and provisions of any Agreements entered into hereunder
     (not inconsistent with this Plan), and to make all other determinations
     necessary or advisable for the administration of this Plan. The Committee
     may correct any defect, supply any omission or reconcile any inconsistency
     in this Plan or in any Award in the manner and to the extent it shall deem
     desirable. The determinations of the Committee in the administration of
     this Plan, as described herein, shall be final, binding and conclusive.

         (B)   DELEGATION OF AUTHORITY. The Committee may delegate all or any
     part of its authority under this Plan to one or more persons for purposes
     of determining and administering Awards.

         (C)   INDEMNIFICATION. To the full extent permitted by law, each member
     and former member of the Committee and each person to whom the Committee
     delegates or has delegated authority under this Plan shall be entitled to
     indemnification by the Company against and from any

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     loss, liability, judgment, damage, cost and reasonable expense incurred by
     such member, former member or other person by reason of any action taken,
     failure to act or determination made in good faith under or with respect to
     this Plan.

     4.  SHARES AVAILABLE; MAXIMUM PAYOUTS.

         (A)   SHARES AVAILABLE. The number of Shares available for distribution
     under this Plan is 1,600,000 (subject to adjustment under Section 12(f)
     hereof).

         (B)   SHARES AGAIN AVAILABLE. Any Shares subject to the terms and
     conditions of an Award under this Plan which are not used because the Award
     expires without all Shares subject to such Award having been issued or
     because the terms and conditions of the Award are not met may again be used
     for an Award under this Plan. Any Shares that are the subject of Awards
     which are subsequently forfeited to the Company pursuant to the
     restrictions applicable to such Award may again be used for an Award under
     this plan. If a Participant exercises a Stock Appreciation Right, any
     Shares covered by the Stock Appreciation Right in excess of the number of
     Shares issued (or, in the case of a settlement in cash or any other form of
     property, in excess of the number of Shares equal in value to the amount of
     such settlement, based on the Fair Market Value of such Shares on the date
     of such exercise) may again be used for an Award under this Plan. If, in
     accordance with the Plan, a Participant uses Shares to (i) pay a purchase
     or exercise price, including an Option exercise price, or (ii) satisfy tax
     withholdings, such Shares may again be used for an Award under this Plan.

         (C)   UNEXERCISED AWARDS. Any unexercised or undistributed portion of
     any terminated, expired, exchanged, or forfeited Award or any Award settled
     in cash in lieu of Shares (except as provided in Section 4(b) hereof) shall
     be available for further Awards.

         (D)   NO FRACTIONAL SHARES. No fractional Shares may be issued under
     this Plan; fractional Shares will be rounded to the nearest whole Share.

         (E)   MAXIMUM PAYOUTS. No more than 25% of all Shares subject to this
     Plan may be granted in the aggregate pursuant to Restricted Stock (if
     vesting is based on a period of time without regard to the attainment of
     specified performance conditions) and Other Stock-Based Awards.

     5.  ELIGIBILITY. Awards may be granted under this Plan to any Employee at
     the discretion of the Committee.

     6.  GENERAL TERMS OF AWARDS.

         (A)   AWARDS. Awards under this Plan may consist of Options, Stock
     Appreciation Rights, Performance Shares, Restricted Stock and Other
     Stock-Based Awards. No incentive stock options, as that term is defined in
     Section 422 of the Code, may be granted under this Plan. Awards of
     Restricted Stock may, in the discretion of the Committee, provide the
     Participant with dividends or dividend equivalents and voting rights prior
     to vesting (whether vesting is based on a period of time, the attainment of
     specified performance conditions or otherwise).

         (B)   AMOUNT OF AWARDS. Each Agreement shall set forth the number of
     Shares of Restricted Stock, Stock or Performance Shares subject to such
     Agreement, or the number of Shares to which the Option applies or with
     respect to which payment upon the exercise of the Stock Appreciation Right
     is to be determined, as the case may be, together with such other terms and
     conditions applicable to the Award (not inconsistent with this Plan) as
     determined by the Committee in its sole discretion.

         (C)   TERM. Each Agreement, other than those relating solely to Awards
     of Stock without restrictions, shall set forth the Term of the Award and
     any applicable Performance Period

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     for Performance Shares, as the case may be. An Agreement with a Participant
     may permit acceleration of vesting requirements and of the expiration of
     the applicable Term upon such terms and conditions as shall be set forth in
     the Agreement, which may, but need not, include (without limitation)
     acceleration resulting from the occurrence of a Change in Control, a
     Fundamental Change, or in the event of the Participant's death, Disability
     or Retirement. Acceleration of the Performance Period of Performance Shares
     shall be subject to Section 9(b) hereof. Notwithstanding the provisions of
     any Agreement, the Committee may, in its discretion, declare at any time
     that any Award granted under this Plan shall be immediately exercisable.

         (D)   AGREEMENTS. Each Award under this Plan shall be evidenced by an
     Agreement setting forth the terms and conditions, as determined by the
     Committee, which shall apply to such Award, in addition to the terms and
     conditions specified in this Plan.

         (E)   TRANSFERABILITY. During the lifetime of a Participant to whom an
     Award is granted, only such Participant (or such Participant's legal
     representative or, if so provided in the applicable Agreement in the case
     of an Option, a permitted transferee as hereafter described) may exercise
     an Option or Stock Appreciation Right or receive payment with respect to
     Performance Shares or any other Award. No Award of Restricted Stock (prior
     to the expiration of the restrictions), Options, Stock Appreciation Rights,
     Performance Shares or other Award (other than an award of Stock without
     restrictions) may be sold, assigned, transferred, exchanged, or otherwise
     encumbered, and any attempt to do so shall be of no effect. Notwithstanding
     the immediately preceding sentence, (i) an Agreement may provide that an
     Award shall be transferable to a Successor in the event of a Participant's
     death and (ii) an Agreement may provide that an Option shall be
     transferable to any member of a Participant's "immediate family" (as such
     term is defined in Rule 16a-1(e) promulgated under the Exchange Act or any
     successor rule or regulation) or to one or more trusts whose beneficiaries
     are members of such Participant's "immediate family" or partnerships in
     which such family members are the only partners; provided, however, that
     the Participant receives no consideration for the transfer. Any Option held
     by a permitted transferee shall continue to be subject to the same terms
     and conditions that were applicable to such Option immediately prior to its
     transfer and may be exercised by such permitted transferee as and to the
     extent that such Option has become exercisable and has not terminated in
     accordance with the provisions of this Plan and the applicable Agreement.
     For purposes of any provision of this Plan relating to notice to a
     Participant or to vesting or termination of a Option upon the termination
     of employment of a Participant, the references to "Participant" shall mean
     the original grantee of the Option and not any permitted transferee.

         (F)   TERMINATION OF EMPLOYMENT. No Option or Stock Appreciation Right
     may be exercised by a Participant, all Restricted Stock held by a
     Participant or any other Award then subject to restrictions shall be
     forfeited, and no payment with respect to Performance Shares for which the
     applicable Performance Period has not been completed shall be made, if the
     Participant's employment or other relationship with the Company and its
     Affiliates shall be voluntarily terminated or involuntarily terminated with
     or without cause before the expiration of the Term of the Option, Stock
     Appreciation Right, Restricted Stock or other Award, or the completion of
     the Performance Period, as the case may be, except as, and to the extent,
     provided in the Agreement applicable to that Award. An Award may be
     exercised by, or paid to, a transferee or the Successor of a Participant
     following the death of the Participant to the extent, and during the period
     of time, if any, provided in the applicable Agreement.

         (G)   RIGHTS AS SHAREHOLDER. A Participant shall have no rights as a
     shareholder with respect to any securities covered by an Award until the
     date the Participant becomes the holder of record.

     7.  STOCK OPTIONS. The purchase price of each Share subject to an Option
shall be determined by the Committee and set forth in the Agreement, but shall
not be less than 100% of the Fair Market Value of a Share as of the date the
Option is granted. The purchase price of the Shares with respect to which an

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Option is exercised shall be payable in full at the time of exercise, provided
that, to the extent permitted by law, Participants may simultaneously exercise
Options and sell the Shares thereby acquired pursuant to a brokerage or similar
relationship and use the proceeds from such sale to pay the purchase price of
such Shares. The purchase price may be paid in cash or, if the Committee so
permits, through a reduction of the number of Shares delivered to the
Participant upon exercise of the Option or delivery or tender to the Company of
Shares held by such Participant (in each case, such Shares having a Fair Market
Value as of the date the Option is exercised equal to the purchase price of the
Shares being purchased pursuant to the Option), or a combination thereof, unless
otherwise provided in the Agreement. If the Committee so determines, the
Agreement relating to any Option may provide for the issuance of "reload"
Options pursuant to which, subject to the terms and conditions established by
the Committee and any applicable requirements of any applicable law, the
Participant will, either automatically or subject to subsequent Committee
approval, be granted a new Option when the payment of the exercise price of the
original Option, or the payment of tax withholdings pursuant to Section 12(d)
hereof, is made through the delivery or tender to the Company of Shares held by
such Participant, such new "reload" Option (i) being an Option to purchase the
number of Shares provided as consideration for the exercise price and in payment
of taxes in connection with the exercise of the original Option, and (ii) having
a per Share exercise price equal to the Fair Market Value as of the date of
exercise of the original Option. Each Option shall be exercisable in whole or in
part on the terms provided in the Agreement. In no event shall any Option be
exercisable at any time after its Term. When an Option is no longer exercisable,
it shall be deemed to have lapsed or terminated. No Participant may receive any
combination of Options and Stock Appreciation Rights relating to more than
500,000 Shares in the aggregate pursuant to Awards in any year under this Plan.

     8.  STOCK APPRECIATION RIGHTS. An Award of a Stock Appreciation Right shall
entitle the Participant, subject to terms and conditions determined by the
Committee, to receive upon exercise of the Stock Appreciation Right all or a
portion of the excess of (i) the Fair Market Value of a specified number of
Shares as of the date of exercise of the Stock Appreciation Right over (ii) a
specified price which shall not be less than 100% of the Fair Market Value of
such Shares as of the date of grant of the Stock Appreciation Right. A Stock
Appreciation Right may be granted in connection with a previously or
contemporaneously granted Option, or independent of any Option. If issued in
connection with an Option, the Committee may impose a condition that exercise of
a Stock Appreciation Right cancels the Option with which it is connected and
exercise of the connected Option cancels the Stock Appreciation Right. Each
Stock Appreciation Right may be exercisable in whole or in part on the terms
provided in the Agreement. No Stock Appreciation Right shall be exercisable at
any time after its Term. When a Stock Appreciation Right is no longer
exercisable, it shall be deemed to have lapsed or terminated. Except as
otherwise provided in the applicable Agreement, upon exercise of a Stock
Appreciation Right, payment to the Participant (or to his or her Successor)
shall be made in the form of cash, Stock or a combination of cash and Stock as
promptly as practicable after such exercise. The Agreement may provide for a
limitation upon the amount or percentage of the total appreciation on which
payment (whether in cash and/or Stock) may be made in the event of the exercise
of a Stock Appreciation Right. As specified in Section 7 hereof, no Participant
may receive any combination of Options and Stock Appreciation Rights relating to
more than 500,000 Shares in the aggregate pursuant to Awards in any year under
this Plan.

     9.  PERFORMANCE SHARES.

         (A)   INITIAL AWARD. An Award of Performance Shares shall entitle a
     Participant (or a Successor) to future payments based upon the achievement
     of performance targets established in writing by the Committee. Payment
     shall be made in Stock, or a combination of cash and Stock, as determined
     by the Committee. With respect to those Participants who are "covered
     employees" within the meaning of Section 162(m) of the Code and the
     regulations thereunder, such performance targets shall consist of one or
     any combination of two or more of gross revenues, license revenues,
     earnings or earnings per share before income tax (profit before taxes), net
     earnings or net earnings per share (profit after tax), operating income,
     total shareholder return, return on equity, pre-tax and pre-interest
     expense return on average invested capital, which may be expressed on a
     current value basis, or sales growth, and any such targets may relate to
     one or any combination of two or more of corporate, group, unit, division,
     Affiliate or individual performance.

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     The Agreement may establish that a portion of the maximum amount of a
     Participant's Award will be paid for performance which exceeds the minimum
     target but falls below the maximum target applicable to such Award. The
     Agreement shall also provide for the timing of such payment. Following the
     conclusion or acceleration of each Performance Period, the Committee shall
     determine the extent to which (i) performance targets have been attained,
     (ii) any other terms and conditions with respect to an Award relating to
     such Performance Period have been satisfied, and (iii) payment is due with
     respect to a Performance Share Award. No Participant may receive
     Performance Shares relating to more than 500,000 Shares pursuant to Awards
     in any year under this Plan.

         (B)   ACCELERATION AND ADJUSTMENT. The Agreement may permit an
     acceleration of the Performance Period and an adjustment of performance
     targets and payments with respect to some or all of the Performance Shares
     awarded to a Participant, upon such terms and conditions as shall be set
     forth in the Agreement, upon the occurrence of certain events, which may,
     but need not, include without limitation a Change in Control, a Fundamental
     Change, the Participant's death, Disability or Retirement, a change in
     accounting practices of the Company or its Affiliates, or, with respect to
     payments in Stock for Performance Share Awards, a reclassification, stock
     dividend, stock split or stock combination as provided in Section 12(f)
     hereof.

         (C)   VALUATION. Each Performance Share earned after conclusion of a
     Performance Period shall have a value equal to the Fair Market Value of a
     Share on the last day of such Performance Period.

     10. RESTRICTED STOCK. Subject to Section 4(e), Restricted Stock may be
granted in the form of Shares registered in the name of the Participant but held
by the Company until the end of the Term of the Award. Any employment
conditions, performance conditions and the Term of the Award shall be
established by the Committee in its discretion and included in the applicable
Agreement. The Committee may provide in the applicable Agreement for the lapse
or waiver of any such restriction or condition based on such factors or criteria
as the Committee, in its sole discretion, may determine. No Award of Restricted
Stock may vest earlier than one year from the date of grant, except as provided
in the applicable Agreement.

     11. OTHER STOCK-BASED AWARDS. Subject to Section 4(e), the Committee may
from time to time grant Awards of Stock, and other Awards under this Plan
(collectively herein defined as "Other Stock-Based Awards"), including without
limitation those Awards pursuant to which Shares may be acquired in the future,
such as Awards denominated in Stock units, securities convertible into Stock and
phantom securities. The Committee, in its sole discretion, shall determine the
terms and conditions of such Awards provided that such Awards shall not be
inconsistent with the terms and purposes of this Plan. The Committee may, in its
sole discretion, direct the Company to issue Shares subject to restrictive
legends and/or stop transfer instructions which are consistent with the terms
and conditions of the Award to which such Shares relate.

     12. GENERAL PROVISIONS.

         (A)   FFECTIVE DATE OF THIS PLAN. This Plan shall become effective as
     of May 31, 2000.

         (B)   DURATION OF THIS PLAN. This Plan shall remain in effect until all
     Stock subject to it shall be distributed or all Awards have expired or
     lapsed, whichever is latest to occur, or this Plan is terminated pursuant
     to Section 12(e) hereof. The date and time of approval by the Committee of
     the granting of an Award shall be considered the date and time at which
     such Award is made or granted, notwithstanding the date of any Agreement
     with respect to such Award; provided, however, that the Committee may grant
     Awards to be effective and deemed to be granted on the occurrence of
     certain specified contingencies.

         (C)   RIGHT TO TERMINATE EMPLOYMENT. Nothing in this Plan or in any
     Agreement shall confer upon any Participant who is an Employee the right to
     continue in the employment of the

<PAGE>   10

     Company or any Affiliate or affect any right which the Company or any
     Affiliate may have to terminate or modify the employment of the Participant
     with or without cause.

         (D)   TAX WITHHOLDING. The Company may withhold from any payment of
     cash or Stock to a Participant or other person under this Plan an amount
     sufficient to cover any required withholding taxes, including the
     Participant's social security and Medicare taxes (FICA) and federal, state
     and local income tax with respect to income arising from payment of the
     Award. The Company shall have the right to require the payment of any such
     taxes before issuing any Stock pursuant to the Award. In lieu of all or any
     part of a cash payment from a person receiving Stock under this Plan, the
     Committee may, in the applicable Agreement or otherwise, permit a person to
     cover all or any part of the required withholdings, and to cover any
     additional withholdings up to the amount needed to cover the person's full
     FICA and federal, state and local income tax with respect to income arising
     from payment of the Award, through a reduction of the number of Shares
     delivered to such person or a delivery or tender to the Company of Shares
     held by such person, in each case valued in the same manner as used in
     computing the withholding taxes under applicable laws.

         (E)   AMENDMENT, MODIFICATION AND TERMINATION OF THIS PLAN. Except as
     provided in this Section 12(e), the Board may at any time amend, modify,
     terminate or suspend this Plan. Except as provided in this Section 12(e),
     the Committee may at any time alter or amend any or all Agreements under
     this Plan to the extent permitted by law. Amendments are subject to
     approval of the shareholders of the Company only if such approval is
     necessary to maintain this Plan in compliance with the requirements of any
     applicable law or regulation. No termination, suspension or modification of
     this Plan may materially and adversely affect any right acquired by any
     Participant (or a Participant's legal representative) or any Successor or
     permitted transferee under an Award granted before the date of termination,
     suspension or modification, unless otherwise provided in an Agreement or
     otherwise or required as a matter of law. It is conclusively presumed that
     any adjustment for changes in capitalization provided for in Section 9(b)
     or 12(f) hereof does not adversely affect any right of a Participant or
     other person under an Award.

         (F)   ADJUSTMENT FOR CHANGES IN CAPITALIZATION. Appropriate adjustments
     in the aggregate number and type of securities available for Awards under
     this Plan, in the limitations on the number and type of securities that may
     be issued to an individual Participant, in the number and type of
     securities and amount of cash subject to Awards then outstanding, in the
     Option exercise price as to any outstanding Options and, subject to Section
     9(b) hereof, in outstanding Performance Shares and payments with respect to
     outstanding Performance Shares may be made by the Committee in its sole
     discretion to give effect to adjustments made in the number or type of
     Shares through a Fundamental Change (subject to Section 12(g) hereof),
     recapitalization, reclassification, stock dividend, stock split, stock
     combination, spin-off or other relevant change, provided that fractional
     Shares shall be rounded to the nearest whole Share.

         (G)   FUNDAMENTAL CHANGE. In the event of a proposed Fundamental
     Change:

               (a) involving a merger, consolidation or statutory share
         exchange, unless appropriate provision shall be made (which the
         Committee may, but shall not be obligated to, make) for the protection
         of the outstanding Options and Stock Appreciation Rights by the
         substitution of options, stock appreciation rights and appropriate
         voting common stock of the corporation surviving any such merger or
         consolidation or, if appropriate, the Parent of such surviving
         corporation, to be issuable upon the exercise of Options or used to
         calculate payments upon the exercise of Stock Appreciation Rights in
         lieu of Options, Stock Appreciation Rights and capital stock of the
         Company, or

               (b) involving the dissolution or liquidation of the Company,

     the Committee may, but shall not be obligated to, declare, at least twenty
     days prior to the

<PAGE>   11

         occurrence of the Fundamental Change, and provide written notice to
         each holder of an Option or Stock Appreciation Right of the
         declaration, that each outstanding Option and Stock Appreciation
         Right, whether or not then exercisable, shall be canceled at the time
         of, or immediately prior to the occurrence of, the Fundamental Change
         in exchange for payment to each holder of an Option or Stock
         Appreciation Right, within 20 days after the Fundamental Change, of
         cash (or with respect to an Option, if the Committee so elects in lieu
         of solely cash, of such form(s) of consideration, including cash
         and/or property, singly or in such combination as the Committee shall
         determine, that such holder of an Option would have received as a
         result of the Fundamental Change if such holder had exercised such
         holder's Option immediately prior to the Fundamental Change) equal to
         (i) for each Share covered by the canceled Option, the amount, if any,
         by which the Fair Market Value (as defined in this Section 12(g)) per
         Share exceeds the exercise price per Share covered by such Option or
         (ii) for each Stock Appreciation Right, the price determined pursuant
         to Section 8 hereof, except that Fair Market Value of the Shares as of
         the date of exercise of the Stock Appreciation Right, as used in
         clause (i) of Section 8, shall be deemed to mean Fair Market Value for
         each Share with respect to which the Stock Appreciation Right is
         calculated determined in the manner hereinafter referred to in this
         Section 12(g). At the time of the declaration provided for in the
         immediately preceding sentence, each Stock Appreciation Right and each
         Option shall immediately become exercisable in full and each person
         holding an Option or a Stock Appreciation Right shall have the right,
         during the period preceding the time of cancellation of the Option or
         Stock Appreciation Right, to exercise the Option as to all or any part
         of the Shares covered thereby or the Stock Appreciation Right in whole
         or in part, as the case may be. In the event of a declaration pursuant
         to this Section 12(g), each outstanding Option and Stock Appreciation
         Right that shall not have been exercised prior to the Fundamental
         Change shall be canceled at the time of, or immediately prior to, the
         Fundamental Change, as provided in the declaration. Notwithstanding
         the foregoing, no person holding an Option or Stock Appreciation Right
         shall be entitled to the payment provided for in this Section 12(g) if
         such Option or Stock Appreciation Right shall have terminated, expired
         or been cancelled. For purposes of this Section 12(g) only, "Fair
         Market Value" per Share means the cash plus the fair market value, as
         determined in good faith by the Committee, of the non-cash
         consideration to be received per Share by the shareholders of the
         Company upon the occurrence of the Fundamental Change, notwithstanding
         anything to the contrary provided in this Plan.

               (H) OTHER BENEFIT AND COMPENSATION PROGRAMS. Payments and other
         benefits received by a Participant under an Award shall not be deemed a
         part of a Participant's regular, recurring compensation for purposes of
         any termination, indemnity or severance pay laws and shall not be
         included in, nor have any effect on, the determination of benefits
         under any other employee benefit plan, contract or similar arrangement
         provided by the Company or an Affiliate, unless expressly so provided
         by such other plan, contract or arrangement or the Committee determines
         that an Award or portion of an Award should be included to reflect
         competitive compensation practices or to recognize that an Award has
         been made in lieu of a portion of competitive cash compensation.

               (I) BENEFICIARY UPON PARTICIPANT'S DEATH. To the extent that the
         transfer of a Participant's Award at death is permitted by this Plan or
         under an Agreement, (i) a Participant's Award shall be transferable to
         the beneficiary, if any, designated on forms prescribed by and filed
         with the Committee and (ii) upon the death of the Participant, such
         beneficiary shall succeed to the rights of the Participant to the
         extent permitted by law and this Plan. If no such designation of a
         beneficiary has been made, the Participant's legal representative shall
         succeed to the Awards, which shall be transferable by will or pursuant
         to laws of descent and distribution to the extent permitted by this
         Plan or under an Agreement.

               (J) UNFUNDED PLAN. This Plan shall be unfunded and the Company
         shall not be required to segregate any assets that may at any time be
         represented by Awards under this Plan. Neither the Company, its
         Affiliates, the Committee, nor the Board shall be deemed to be a
         trustee of any amounts to be paid under this Plan nor shall anything
         contained in this Plan or any action taken

<PAGE>   12

         pursuant to its provisions create or be construed to create a
         fiduciary relationship between the Company and/or its Affiliates, and
         a Participant or Successor. To the extent any person acquires a right
         to receive an Award under this Plan, such right shall be no greater
         than the right of an unsecured general creditor of the Company.

               (K) LIMITS OF LIABILITY.

                   (i)  Any liability of the Company to any Participant with
               respect to an Award shall be based solely upon contractual
               obligations created by this Plan and the Agreement.

                   (ii) Except as may be required by law, neither the Company
               nor any member or former member of the Board or of the Committee,
               nor any other person participating (including participation
               pursuant to a delegation of authority under Section 3(b) hereof)
               in any determination of any question under this Plan, or in the
               interpretation, administration or application of this Plan, shall
               have any liability to any party for any action taken, or not
               taken, in good faith under this Plan.

               (L) COMPLIANCE WITH APPLICABLE LEGAL REQUIREMENTS. No certificate
         for Shares distributable pursuant to this Plan shall be issued and
         delivered unless the issuance of such certificate complies with all
         applicable legal requirements including, without limitation, compliance
         with the provisions of applicable state securities laws, the Securities
         Act of 1933, as amended and in effect from time to time or any
         successor statute, the Exchange Act and the requirements of the
         exchanges, if any, on which the Company's Shares may, at the time, be
         listed.

               (M) DEFERRALS AND SETTLEMENTS. The Committee may require or
         permit Participants to elect to defer the issuance of Shares or the
         settlement of Awards in cash under such rules and procedures as it may
         establish under this Plan. It may also provide that deferred
         settlements include the payment or crediting of interest on the
         deferral amounts.

         13. GOVERNING LAW. To the extent that federal laws do not otherwise
control, this Plan and all determinations made and actions taken pursuant to
this Plan shall be governed by the laws of Minnesota and construed accordingly.

         14. SEVERABILITY. In the event any provision of this Plan shall be held
illegal or invalid for any reason, the illegality or invalidity shall not affect
the remaining parts of this Plan, and this Plan shall be construed and enforced
as if the illegal or invalid provision had not been included.

         15. PRIOR PLANS. Notwithstanding the adoption of this Plan by the
Board, the Company's 1994-1997 Stock Option Plan, the 1997 Director Stock Option
Plan, the 2000 Stock Incentive Plan and the 1999 Employee Stock Option and
Compensation Plan, as the same may have been amended from time to time (the
"Prior Plans"), shall remain in effect and the Committee may continue to make
grants of awards pursuant to and subject to the limitations of the Prior Plans.
All grants and awards heretofore or hereafter made under the Prior Plans shall
be governed by the terms of the Prior Plans.<PAGE>   1
                                                                   EXHIBIT 10.23

                                 CIMA LABS INC.
                              EMPLOYMENT AGREEMENT
                              WITH JOHN M. SIEBERT

         THIS AGREEMENT is entered into effective as of the date of signing by
and between CIMA LABS INC., a Delaware corporation (the "Company"), and John M.
Siebert, Ph.D. (the "Employee").

         WHEREAS the Company desires to engage the Employee in the position of
President and Chief Executive Officer to render services for the Company on the
terms and conditions set forth in this Agreement;

         WHEREAS, the Employee desires to be retained by the Company as its
President and Chief Executive Officer; and

         WHEREAS, both parties recognize the critical importance to the Company,
its employees, and its investors of preserving the confidentiality of the
Company's trade secrets and confidential information and of protecting the
Company against competition from former executives or other key employees of the
Company following their separation from the Company;

         NOW, THEREFORE, in consideration of the foregoing premises and the
parties' mutual covenants and undertakings contained in this Agreement, the
sufficiency of which is hereby acknowledged, the Company and the Employee agree
as follows:

         1. EMPLOYMENT AND TERM. Subject to the terms and conditions herein
provided, the Company hereby continues employment of the Employee, and the
Employee hereby accepts employment by the Company, for a term continuing as of
January 1, 2001 and thereafter for three (3) years to January 1, 2004. The
employment

<PAGE>   2

                                                                   EXHIBIT 10.23

term of the Employee will expire at the expiration of this (3) year employment
continuation term, without further obligation for either party. On or before
January 1, 2003, the Company expects to indicate to the Employee whether the
Company is interested in continuing employment of the Employee with respect to a
new employment agreement.

         Notwithstanding the foregoing, the Company may terminate the Employee's
employment for cause and without notice and without further obligation of any
kind to the Employee. For purposes of this Agreement, "cause" means:

         (a) any felony conviction;

         (b) use of intoxicating beverages or chemical abuse that negatively
         affects job performance (following at least one written warning);

         (c) an act or acts of personal dishonesty taken by the Employee and
         intended to result in personal enrichment of the Employee at the
         expense of the Company;

         (d) any material breach of the Employee's obligations under this
         Agreement;

         (e) the willful misconduct or gross negligence of the Employee in
         connection with the performance of his duties, responsibilities,
         agreements, and covenants hereunder, or his failure to comply with the
         reasonable rules, regulations, policies, directions, and restrictions
         as may be established from time to time by the Board of Directors, and
         which misconduct, negligence, or failure shall continue for a period of
         thirty (30) days after written notice to the Employee; or

                                       2

<PAGE>   3
                                                                   EXHIBIT 10.23

         (f) willful conduct of the Employee which brings discredit to the
         Company, its products, or its services.

         It is further agreed that the term of the Employee's employment under
this Agreement shall automatically terminate in the event of the Employee's
death. In the event the Employee becomes mentally or physically disabled during
the term of employment hereunder, his employment under this Agreement shall
terminate as of the date such disability is established. As used in this
paragraph, the term "disabled" shall have the meaning as set forth in the
Americans with Disabilities Act, as amended. Upon termination for disability,
the Employee shall be entitled to receive continuation of his base salary (as
herein defined) for a period of one hundred eighty (180) days. Upon termination
in the event of the Employee's death, the Company shall continue to pay the
Employee's base salary (as herein defined) for a period of one hundred eighty
(180) days.

         2. DUTIES AND REPRESENTATIONS OF THE EMPLOYEE. During the Employee's
employment hereunder, he shall serve as the Company's President and Chief
Executive Officer. The Employee shall devote his full time, attention,
knowledge, and skill exclusively to the loyal service of the Company. The
Employee represents and warrants to the Company that: (a) his acceptance of
employment under this Agreement and his performance of the duties contemplated
herein are not in conflict with any obligation, undertaking, or agreement
between the Employee and any third party; and (b) he has not and will not,
during the course of his employment with the Company, disclose or utilize
without permission, any confidential or proprietary information, trade

                                       3

<PAGE>   4
                                                                   EXHIBIT 10.23

secrets, materials, documents, or property owned by any third party. The Company
through the Compensation Committee expects to evaluate the Employee's
performance every twelve (12) months during the term of this Agreement.

         3. COMPENSATION. The Company shall pay to the Employee the following
compensation:

         (a) BASE SALARY. The Company shall pay to the Employee an annual base
salary of $305,000 beginning January 1, 2001, less legally required deductions
and withholdings, payable in periodic installments in accordance with the
standard payroll practices of the Company in effect from time-to-time. On
January 1, 2002, the annual base salary will be adjusted upwards by 5%. On
January 1, 2003, the annual base salary will be adjusted upwards from the 2002
increase by an incremental 5%. In the event of change of control of the Company
which leads to the termination or separation of the Employee (1) because the
position is eliminated, (2) because continuing to work in the position would
require the Employee to transfer to a work site outside a 100-mile radius of his
work location at the time of change in control and Employee is unwilling to
relocate, or because his responsibilities change so substantially that the
Employee has effectively been removed from the position held by him prior to the
change in control, the Employee will automatically get an additional twelve (12)
months of compensation or the remainder of his contract (less any amount of
salary received in a subsequent job during such twelve (12) month period or
remainder of contract, as applicable), whichever is longer, in addition to the
benefits of any corporate severance plan, during which time the terms of the
Agreement will remain in full force and effect.

                                       4

<PAGE>   5
                                                                   EXHIBIT 10.23

         (b) INCENTIVE BONUS. The Employee will be entitled to receive an
incentive bonus award of up to seventy percent (70%) of his base salary
depending upon the achievement of objectives defined and agreed to by the
Compensation Committee of the Board of Directors prior to the last Board meeting
of each calendar year. The award for achievement that occurs against objectives
in that year will be agreed-upon by the Compensation Committee and paid before
February 1 of the next year. The determination of whether and when any of the
objectives are achieved shall be in the reasonable discretion of the
Compensation Committee. The determination of any additional incentive bonus
programs shall be in the sole discretion of the Compensation Committee. In the
event of change of control of the Company, a minimum bonus of $150,000 will be
paid for each year of compensation remaining under the terms of this Agreement
for which a bonus has not yet been paid.

         (c) PARTICIPATION IN BENEFIT PLANS. The Employee shall also be entitled
to participate in all employee benefit plans or programs of the Company,
including any disability and life insurance group plans, to the extent that his
position, title, tenure, salary, age, health, and other qualifications make him
eligible to participate. The Company will provide a life insurance policy with
minimum payout of $500,000 in the event the Employee is killed or disabled
during travel which is undertaken in the course of business.

         (d) VACATION. During the term of the Employee's employment under this
Agreement, the Employee shall be entitled to take twenty-five (25) days of
vacation per year with pay, at such times as shall be mutually convenient to the
Company and the

                                       5

<PAGE>   6
                                                                   EXHIBIT 10.23

Employee. Vacation time may be accumulated throughout the term of this and any
prior Agreements. Two weeks before the final Board meeting of each year, the
Vice President, CFO will provide the Compensation Committee with a report
outlining the Employee's paid time off (PTO) taken and remaining for that year.

         (e) EMPLOYMENT-RELATED EXPENSES. The Company shall pay or reimburse the
Employee for all reasonable and necessary out-of-pocket expenses incurred by him
in the performance of his duties under this Agreement, subject to the
presentment of appropriate vouchers in accordance with the Company's normal
policies for expenses verification.

         (f) CAR ALLOWANCE. The Employee will be paid a car allowance in the
amount of six hundred fifty dollars ($650.00) per month, consistent with the
Company's payroll and accounting practices.

         (g) STOCK OPTION. Subject to the terms of the Company's Equity
Incentive Plan, and subject to the Employee executing this document, the Company
shall issue to the Employee an incentive stock option to purchase one hundred
thousand (100,000) shares of common stock in the Company effective at the date
of signing this Agreement. This award will vest as follows: (i) thirty-three
percent (34%) of the shares subject to the option will vest on December 31,
2002; (ii) thirty-three percent (33%) of the shares subject to the option will
vest on December 31, 2003; (iii) thirty-three percent (33%) of the shares
subject to the option will vest on December 31, 2004; subject to accelerated
vesting as provided in the Equity Incentive Plan.

                                       6

<PAGE>   7
                                                                   EXHIBIT 10.23

         Any payment or benefit hereunder shall be reduced to the extent that,
due to the excise tax on excess parachute payments under Section 4999 of the
Internal Revenue Code of 1986, such reduction would increase the Employee's
after-tax income. The Employee shall determine which payments or benefits shall
be so reduced."

         4. CONFIDENTIAL INFORMATION. Except as permitted or directed by the
Company's Board of Directors, during the term of this Agreement or at any time
thereafter, the Employee shall not divulge, furnish, or make accessible to
anyone or use in any way (other than in the ordinary course of business of the
Compete) any confidential or secret knowledge of the Company which the Employee
has acquired or become acquainted with or will acquire or become acquainted with
prior to the termination of the period of his employment by the Company, whether
developed by himself or by others, concerning any trade secrets, confidential or
secret designs, processes, formulae, plans, devices, or materials (whether or
not patented or patentable), directly or indirectly useful in any aspect of the
business of the Company, any customer or supplier list of the Company, any
confidential or secret development or research work of the Company, or any other
confidential information or secret aspects of the business of the Company. The
Employee acknowledges that the above-described knowledge or information
constitutes a unique and valuable asset of the Company and represents a
substantial investment of time and expense by the Company and its predecessors,
and that any disclosure or other use of such knowledge or information other than
for the sole benefit of the Company would be wrong and would cause irreparable
harm to the Company. Both during and after the

                                       7

<PAGE>   8
                                                                   EXHIBIT 10.23

term of this Agreement, the Employee will refrain from any acts or omissions
that would reduce the value of such knowledge or information to the Company. The
foregoing obligations of confidentiality, however, shall not apply to any
knowledge or information which is now published or which subsequently becomes
generally publicly known in the form in which it was obtained from the Company,
other than as a direct or indirect result of a breach of this Agreement by the
Employee.

         5. RETURN OF PROPRIETARY PROPERTY. The Employee agrees that all
property in the Employee's possession belonging to the Company, including
without limitation, all documents, reports, manuals, memoranda, computer
print-outs, customer lists, credit cards, keys, identification, products, access
cards, and all other property relating in any way to the business of the Company
are the exclusive property of the Company, even if the Employee authored,
created, or assisted in authoring or creating such property. The Employee shall
return to the Company all such documents and property immediately upon
termination of employment or at such earlier time as the Company may reasonably
request.

         6. RESTRICTIVE COVENANT. The Employee acknowledges that the Company
needs to be protected against the potential for unfair competition and
impairment of the Company's good will by the Employee's use of the Company's
training, assistance, confidential information, and trade secrets in direct
competition with the Company. The Employee therefore agrees that for a period of
one (1) year from the date of termination of his employment hereunder, the
Employee shall not operate, join, control, be employed by, or participate in
ownership, management, operation, or control of, or be

                                       8

<PAGE>   9
                                                                   EXHIBIT 10.23

connected in any manner as an independent contractor, consultant, or otherwise,
with any person or organization engaged in any business activity which is the
same as, or directly competitive with any business of the Company or any
successor of the Company as of the date of the termination of his employment
hereunder within the states of the United States of America. The Employee
expressly agrees that the provisions of this paragraph 6 shall survive the
termination of the Employee's employment hereunder or the termination of this
Agreement for a period of one (1) year, whether such termination be voluntary or
involuntary or with or without cause.

         7. COVENANT NOT TO RECRUIT. The Employee recognizes that the Company's
work force constitutes an important and vital aspect of its business. The
Employee agrees that for a period of one (1) year following the termination of
his employment hereunder or the termination of this Agreement for any reason
whatsoever, he shall not recruit, or assist anyone else in the solicitation of,
any of the Company's then current employees to terminate their employment with
the Company and to become employed by any business enterprise with which the
Employee may then be associated or connected, whether as an owner, employee,
partner, agent, investor, consultant, contractor or otherwise.

         8. ASSIGNMENT. The rights and obligations of the Company under this
Agreement shall inure to the benefit of and shall be binding upon the successors
and assigns of the Company. The Employee may not assign this Agreement or any
rights hereunder. Any purported or attempted assignment or transfer by the
Employee of this

                                       9

<PAGE>   10
                                                                   EXHIBIT 10.23

Agreement or any of the Employee's duties, responsibilities, or obligations
hereunder shall be void.

         9. NOTICES. For purposes of this Agreement, notices provided in this
Agreement shall be in writing; and shall be deemed to have been given when
personally served, sent by courier or mailed by United States registered or
certified mail, return receipt requested, postage prepaid, to the last known
residence address of the Employee or, in the case of the Company, to its
principal office to the attention of the Board of Directors, or to such other
address as either party may have furnished to the other in writing in accordance
herewith, except that notice of change of address shall be effective only upon
receipt.

         10. CONSTRUCTION AND SEVERABILITY. The validity, interpretation,
performance, and enforcement of this Agreement shall be governed by the laws of
the State of Minnesota. In the event any provision of this Agreement shall be
held illegal or invalid for any reason, said illegality or invalidity will not
in any way affect the legality or validity of any other provision hereof. It is
the intention of the parties hereto that the Company be given the broadest
possible protection respecting its confidential information and trade secrets;
and respecting competition by the Employee following his separation by the
Company.

         11. ARBITRATION. Except as provided in this paragraph, any claims or
disputes of any nature between the parties arising from or related to the
performance, breach, termination, expiration, application, or meaning of this
Agreement or any matter relating to the Employee's employment and the
termination of that employment by the

                                       10

<PAGE>   11
                                                                   EXHIBIT 10.23

Company, shall be resolved exclusively by arbitration before the American
Arbitration Association in Minneapolis, Minnesota, in accordance with the
applicable rules then obtaining of the American Arbitration Association.

         The decision of the arbitrator(s) shall be final and binding upon both
parties Judgment of the award rendered by the arbitrator(s) may be entered in
any court having jurisdiction thereof. In the event of submission of any dispute
to arbitration, each party shall, not later than thirty (30) days prior to the
date set for hearing, provide to the other party and to the arbitrator(s) a copy
of all exhibits upon which the party intends to rely at the hearing and a list
of all persons each party intends to all at the hearing.

         This paragraph shall have no obligation to claims by the Company
asserting a violation of or seeking to enforce, by injunction or otherwise, the
terms of paragraphs 4, 5, 6 and 7 above. Such claims may be maintained by the
Company in a lawsuit subject to the terms of paragraph 12 below. The Employee
agrees that, in addition to, but not to the exclusion of any other available
remedy, the Company shall have the right to enforce the provisions of paragraphs
4, 5, 6 and 7 by applying for and obtaining temporary and permanent restraining
orders or injunctions from a court of competent jurisdiction without the
necessity of filing a bond therefore, and the Company shall be entitled to
recover from the Employee its reasonable attorneys' fees and costs in enforcing
the provisions of paragraphs 4, 5, 6 and 7.

         12. VENUE. Any action at law, suit in equity, or judicial proceeding
arising directly, indirectly, or otherwise in connection with, out of, related
to or from this

                                       11

<PAGE>   12
                                                                   EXHIBIT 10.23

Agreement or any provision hereof, shall be litigated only in the courts of the
State of Minnesota, County of Hennepin. The Employee waives any right the
Employee may have to transfer or change the venue of any litigation brought
against the Employee by the Company.

         13. ENTIRE AGREEMENT. This Agreement sets forth the entire Agreement
between the Company and the Employee with respect to his employment by the
Company and there are no undertakings, covenants, or commitments other than as
set forth herein. This Agreement may not be altered or amended, except by a
writing executed by the party against whom such alteration or amendment is to be
enforced. This Agreement supersedes any and all prior understandings or
agreements between the parties.

         14. COUNTERPARTS. This Agreement may be simultaneously executed in any
number of counterparts, and such counterparts executed and delivered, each as an
original, shall constitute but one and the same instrument.

         15. CAPTIONS AND HEADINGS. The captions and paragraph headings used in
this Agreement are for convenience of reference only, and shall not affect the
construction or interpretation of this Agreement or any of the provisions
hereof.

         16. SURVIVAL. The parties expressly acknowledge and agree that the
provisions of this Agreement which by their express or implied terms extend
beyond the expiration of this Agreement or the termination of the Employee's
employment hereunder, shall continue in full force and effect, notwithstanding
the Employee's termination of employment hereunder or the expiration of this
Agreement.

                                       12

<PAGE>   13
                                                                   EXHIBIT 10.23

         17. WAIVERS. No failure on the part of either party to exercise, and no
delay in exercising, any right or remedy hereunder shall operate as a waiver
thereof; nor shall any single or partial exercise of any right or remedy
hereunder preclude any other or further exercise thereof, or the exercise of any
other right or remedy granted hereby or by any related document or by law. No
single or partial waiver of rights or remedies hereunder, nor any course of
conduct of the parties, shall be construed as a waiver of rights or remedies by
either party (other than as expressly and specifically waived).

         18. RELIANCE BY THIRD PARTIES. This Agreement is intended for the
exclusive benefit of the parties hereto and their respective heirs, executors,
administrators, personal representatives, successors, and permitted assigns, and
no other person or entity shall have any right to rely on this Agreement or to
claim or derive any benefit therefrom, absent the express written consent of the
party to be charged with such reliance or benefit.

         IN WITNESS WHEREOF, the parties have signed this Agreement.

<TABLE>
<CAPTION>
CIMA LABS INC.                                                 CIMA LABS INC.

<S>          <C>                                             <C>             <C>
By:          Terrence W. Glarner                             By:             John M. Siebert
             --------------------------------------------                    -------------------------------------------
             Print Name                                                      Print Name

Its:         Chairman of the Board                           Its:            President and CEO
             --------------------------------------------                    -------------------------------------------
             Title                                                           Title

             --------------------------------------------                    -------------------------------------------
             Signature                                                       Signature

Dated:                                                       Dated:
             --------------------------------------------                    -------------------------------------------
</TABLE>

                                       13

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