Document:

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                                                                  Exhibit 10.26

                            DEVELOPMENT, LICENSE AND SUPPLY AGREEMENT

                                         by and between

                                         CIMA LABS INC.

                                              and

                                      SCHWARZ PHARMA, INC.

                                dated as of September 29, 2000

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                                                                  Exhibit 10.26

                                TABLE OF CONTENTS
<TABLE>
<S>     <C>    <C>                                                            <C>
SECTION 1 DEFINITIONS...........................................................1

SECTION 2 GRANT OF LICENSES; LICENSE OPTION.....................................5
         2.1   Grant of Licenses................................................5
         2.2   Sublicenses......................................................5
         2.3   Marketing, Distribution and Sale.................................5
         2.4   Minimum Annual Net Sales; Amendment to June Agreement............5

SECTION 3 PRODUCT DEVELOPMENT...................................................6
         3.1   Obligations of CIMA..............................................6
         3.2   Obligations of Schwarz...........................................6
         3.3   License of Schwarz Technology....................................6
         3.4   Regulatory Matters...............................................6

SECTION 4 ROYALTY, COST OF GOODS AND MILESTONE PAYMENTS.........................7
         4.1   Royalty and Milestone Payments...................................7
         4.2   Records and Audit................................................7
         4.3   Quarterly Reports of Royalties...................................7

SECTION 5 SUPPLY OF PRODUCT.....................................................8
         5.1   Supply of Product................................................8
         5.2   Identification...................................................9
         5.3   Trade, Sample and Placebo Product Price..........................9
         5.4   Forecasts, Delivery and Quality..................................9
         5.5   Rejection and Replacement........................................9
         5.6   Invoice and Payment.............................................10
         5.7   Supply Disruption; Alternate Manufacturing Site.................10
         5.8   CIMA's Obligation to Continue Manufacture.......................10

SECTION 6 CONDITIONS PRECEDENT TO THE CLOSING; CLOSING DATE....................11
         6.1   Conditions Precedent to Schwarz's Obligations...................11
         6.2   Conditions Precedent to CIMA's Obligations......................11
         6.3   Closing Date....................................................12

SECTION 7 REPRESENTATIONS AND WARRANTIES OF CIMA...............................12
         7.1   Organization, Power and Authority...............................12
         7.2   Due Authority; No Breach........................................12
         7.3   Intellectual Property...........................................13
         7.4   Technology Rights...............................................13
         7.5   Litigation......................................................13
         7.6   Governmental Approval...........................................14
</TABLE>

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                                                                  Exhibit 10.26

<TABLE>
<S>     <C>    <C>                                                            <C>
         7.7   Brokerage.......................................................14

SECTION 8 REPRESENTATIONS AND WARRANTIES OF SCHWARZ............................14
         8.1   Organization, Power and Authority...............................14
         8.2   Due Authority; No Breach........................................14
         8.3   Brokerage.......................................................15
         8.4   Litigation......................................................15
         8.5   Governmental Approval...........................................15

SECTION 9 ADDITIONAL COVENANTS AND AGREEMENTS OF THE PARTIES...................15
         9.1   Governmental Filings............................................15
         9.2   Compliance with Law.............................................15
         9.3   Recall..........................................................16
         9.4   Confidentiality.................................................16
         9.5   Expenses........................................................17
         9.6   Reasonable Efforts..............................................17
         9.7   Publicity.......................................................17
         9.8   Cooperation.....................................................17
         9.9   Competition; No Sale for Resale.................................17
         9.10  Conflicting Rights..............................................18
         9.11  Patent and Trademark Maintenance................................18
         9.12  Infringement; Enforcement of Proprietary Rights.................19
         9.13  Supply of Product...............................................20
         9.14  Liability Insurance.............................................20
         9.15  Referral of Orders and Inquiries................................20
         9.16  Deemed Breach of Covenant.......................................20

SECTION 10 INDEMNIFICATION.....................................................20
         10.1  Indemnification.................................................20
         10.2  Notice and Opportunity To Defend................................21
         10.3  Indemnification Payment Obligation..............................22
         10.4  Indemnification Payment Adjustments.............................22
         10.3  Indemnification Payment.........................................22
         10.4  Survival........................................................22

SECTION 11 TERMINATION.........................................................23
         11.1  Termination.....................................................23

SECTION 12 MISCELLANEOUS.......................................................24
         12.1  Successors and Assigns..........................................24
         12.2  Notices.........................................................24
         12.3  Waiver; Remedies................................................24
</TABLE>

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                                                                  Exhibit 10.26

<TABLE>
<S>     <C>    <C>                                                            <C>
         12.4  Survival of Representations.....................................25
         12.5  Independent Contractors.........................................25
         12.6  Entire Agreement................................................25
         12.7  Amendment.......................................................25
         12.8  Counterparts....................................................25
         12.9  Governing Law...................................................25
         12.10 Arbitration.....................................................25
         12.11 Captions........................................................26
         12.12 No Third-Party Rights...........................................26
         12.13 Severability....................................................26
         12.14 Attachments.....................................................26
         12.15 Force Majeure...................................................26

</TABLE>

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                                                                  Exhibit 10.26

SCHEDULES
<TABLE>
<S>                     <C>
Schedule 2.4             Minimum Annual Net Sales Targets
Schedule 3.1             Development Schedule
Schedule 4.1(a)          Royalty Rates
Schedule 4.1(b)          Milestone Payments
Schedule 5.1(b)          Schwarz Purchase Order
Schedule 5.3             Cost of Goods
Schedule 5.4(d)          Quality Assurance Addendum
Schedule 9.9(a)          Competitive Products

</TABLE>

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                                                                  Exhibit 10.26

                    DEVELOPMENT, LICENSE AND SUPPLY AGREEMENT

         This DEVELOPMENT, LICENSE AND SUPPLY AGREEMENT ("this Agreement"),
dated as of September 29, 2000, is by and between CIMA LABS INC., a Delaware
corporation ("CIMA"), and SCHWARZ PHARMA, INC., a Delaware corporation
("Schwarz").

                               W I T N E S S E T H
                               - - - - - - - - - -

         WHEREAS, CIMA is engaged, among other things, in the business of
research, development, manufacturing and commercialization of pharmaceutical
products through its proprietary drug delivery technologies;

         WHEREAS, Schwarz is engaged, among other things, in the business of
marketing and selling of pharmaceutical products;

         WHEREAS, subject to the terms and conditions set forth in this
Agreement, CIMA and Schwarz wish to collaborate in the development,
registration, marketing and sale of a certain prescription product; and

         WHEREAS, subject to the terms and conditions set forth in this
Agreement, CIMA wishes to license to Schwarz and Schwarz wishes to license from
CIMA rights to CIMA's DuraSolv(TM) technology for use with such prescription
product.

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

                                    SECTION 1

                                   DEFINITIONS

         For purposes of this Agreement, the following terms shall have the
meanings set forth below:

         "Activities" shall mean the development, manufacturing, marketing,
selling and distributing of the Product in the Territory as contemplated by this
Agreement.

         "Affiliates" shall mean, with respect to any Person, any Persons
directly or indirectly controlling, controlled by, or under common control with,
such other Person. For purposes hereof, the term "controlled" (including the
terms "controlled by" and "under common control with"), as used with respect to
any Person, shall mean the direct or indirect ability or power to direct or
cause the direction of management policies of such Person or otherwise direct
the affairs of such Person, whether through ownership of voting securities or
otherwise.

         "Annual Net Sales" shall mean, for any Year, the Net Sales for such
Year.

         "API" shall mean the active ingredient [***CONFIDENTIAL TREATMENT
REQUESTED, PORTION OMITTED FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION.***].

<PAGE>   7
                                                                  Exhibit 10.26

         "cGMP" shall mean current Good Manufacturing Practices, as determined
by the FDA from time to time.

         "CIMA" shall have the meaning given in the preamble and shall include
its Affiliates.

         "CIMA Intellectual Property" shall mean, collectively, the CIMA
Patents, the CIMA Technology, the CIMA Trademarks, and the CIMA Marketing
Materials.

         "CIMA Marketing and Market Research Data" shall mean, with respect to
the Product, all CIMA marketing data, studies, market research data and reports
that pertain to the Product, and any further market research data whose
disclosure to Schwarz is not prohibited by confidentiality obligations under
agreements, dated prior to the date hereof, between CIMA and Persons who are not
Affiliates of CIMA.

         "CIMA Marketing Materials" shall mean all labeling, marketing and
promotional materials and inserts currently used by CIMA that are useful in
connection with the Activities.

         "CIMA Patents" shall mean United States patent no. 6024981 (Rapidly
Dissolving Robust Dosage Form) and any patents and patent applications resulting
therefrom, including any extension, reissue, renewal, reexamination or
continuation-in-part of such patent or patent application.

         "CIMA Technology" shall mean all of CIMA's Patents, trade secrets,
technology, know-how and all other information necessary for the manufacture of
the Product including, without limitation, that related to CIMA's DuraSolv(TM)
technology.

         "CIMA Trademarks" shall mean the CIMA(TM), DuraSolv(TM) and Meltabs(TM)
trademarks.

         "Closing Date" shall have the meaning given in Section 6.3 hereof.

         "Damages" shall mean any and all actions, costs, losses, lost profits,
claims, liabilities, fines, penalties, demands, damages and expenses, court
costs, and reasonable fees and disbursements of counsel, consultants and expert
witnesses incurred by a party hereto (including interest which may be imposed in
connection therewith).

         "Defective" shall mean, as to the Product, the failure of such to
strictly conform to the Specifications, this Agreement and all applicable law,
including, without limitation, PDMA.

         "Development Schedule" shall mean the schedule of development
activities set forth on Schedule 3.1 hereto.

         "FDA" shall mean the United States Food and Drug Administration.

         "Force Majeure" shall mean acts of God, explosion, fire, flood,
tornadoes, thunderstorms, earthquake or tremor, war whether declared or not,
civil strife, riots, embargo, losses or shortages of power, labor stoppage,
substance shortages, damage to or loss or product in transit, currency
restrictions, or events caused by reason of laws, regulations or orders by any
government, governmental agency or instrumentality or by an other supervening or
unforeseeable circumstances reasonably beyond the control of each party.

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                                                                  Exhibit 10.26

         "GAAP" shall mean generally accepted accounting practices in the United
States as in effect from time to time.

         "Indemnified Party" shall have the meaning given in Section 10.2
hereof.

         "Indemnifying Party" shall have the meaning given in Section 10.2
hereof.

         "June Agreement" shall mean that certain Development, License and
Supply Agreement, dated as of June 30, 2000, between Schwarz and CIMA.

         "June Product" shall mean the Product, under and as defined in the June
Agreement.

         "Launch" shall mean the date when the Product is first made
commercially available by Schwarz.

         "[***CONFIDENTIAL TREATMENT REQUESTED, PORTION OMITTED FILED SEPARATELY
WITH THE SECURITIES AND EXCHANGE COMMISSION.***]" shall mean a pharmaceutical
product containing [***CONFIDENTIAL TREATMENT REQUESTED, PORTION OMITTED FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.***], either alone or in
combination with other pharmaceutical active ingredients.

         "Licensed Assets" shall have the meaning set forth in Section 2.1
hereof.

         "Net Sales" shall mean, with respect to the Product, the gross amount
invoiced to unrelated third parties for the Product in the Territory, less:

         (a)  trade and reasonable and customary cash discounts allowed;

         (b)  refunds, rebates, chargebacks, retroactive price adjustments and
              any other allowances which effectively reduce the net selling \
              price; and

         (c)  returns, credits and allowances.

Such amounts shall be determined from books and records maintained in accordance
with GAAP, consistently applied.

         "PDMA" shall mean the Prescription Drug Marketing Act of 1987, as
amended from time to time, together with any rules or regulations promulgated
thereunder.

         "Person" shall mean a natural person, a corporation, a partnership, a
trust, a joint venture, a limited liability company, any governmental authority
or any other entity or organization.

         "Product" shall mean a pharmaceutical product containing
[***CONFIDENTIAL TREATMENT REQUESTED, PORTION OMITTED FILED SEPARATELY WITH THE
SECURITIES AND EXCHANGE COMMISSION.***] of the active ingredient
[***CONFIDENTIAL TREATMENT REQUESTED, PORTION OMITTED FILED SEPARATELY WITH THE
SECURITIES AND EXCHANGE COMMISSION.***], in a fast

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                                                                  Exhibit 10.26

dissolving, extended release tablet using the CIMA Technology, as more
specifically described below:

         Active ingredient and potency: [***CONFIDENTIAL TREATMENT REQUESTED,
                                         PORTION OMITTED FILED SEPARATELY
                                         WITH THE SECURITIES AND EXCHANGE
                                         COMMISSION.***]
         Tablet size: 3/8" - 5/8"
         Tablet weight: 300-1000 mg
         Bioequivalence:   [***CONFIDENTIAL TREATMENT REQUESTED, PORTION OMITTED
                           FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
                           COMMISSION.***]
         Flavor: TBD
         Color: TBD
         Tablet disintegration: 40 seconds or less
         Intagliation (Engraving): TBD

         "Promotional Materials" shall mean any advertising and promotional
labeling bearing a name (trade name or generic name) used in the promotion of
the Product, including, without limitation, promotional materials produced by or
on behalf of Schwarz (examples include, but are not limited to, journal ads,
brochures, service items, managed care pull through sheets, formulary
presentations, price lists, monographs, Internet pages and telephone or
television advertisements) and materials produced by outside sources (examples
include, but are not limited to, medical reprints, textbooks and CME materials)
to the extent funded by, created in cooperation with, reviewed, or distributed
by Schwarz. The definition of Promotional Materials shall also include press
releases and other releases of information to the media regarding the Product.

         "Quarter" shall mean, as the case may be, the three months ending on
March 31, June 30, September 30 or December 31 in any Year.

         "Schwarz" shall have the meaning given in the preamble and shall
include its Affiliates.

         "Schwarz Technology" shall mean all of Schwarz's patents, trade
secrets, technology, know-how and all other information necessary to the
manufacture of the Product including, without limitation, that related to
[***CONFIDENTIAL TREATMENT REQUESTED, PORTION OMITTED FILED SEPARATELY WITH THE
SECURITIES AND EXCHANGE COMMISSION.***].

         "Schwarz Trademarks" shall have the meaning given in Section 9.11(c).

         "Specifications" shall mean, at any time, the specifications for the
Product that are included in the Quality Assurance Addendum set forth on
Schedule 5.4(d).

         "Territory" shall mean the fifty (50) states, the District of Columbia
and the territories and possessions comprising the United States of America,
including Puerto Rico.

         "Year" shall mean a calendar year during the term of this Agreement.

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                                                                  Exhibit 10.26
                                    SECTION 2

                        GRANT OF LICENSES; LICENSE OPTION

         2.1   Grant of Licenses.

         (a)   CIMA hereby grants to Schwarz an exclusive license, subject to
Section 2.4, for the term of this Agreement under the following assets to
develop, manufacture, market, distribute and sell the Product, for all
indications and for all agreed upon product line extensions, in the Territory
(such assets are referred to herein collectively as the "Licensed Assets"):

               (i)   all current and future regulatory filings, approvals,
registrations and governmental authorizations that relate to the Product in the
Territory;

               (ii)  the CIMA Intellectual Property; and

               (iii) the CIMA Marketing and Market Research Data.

         (b)   CIMA grants to Schwarz an exclusive, royalty bearing license
to use the CIMA Trademarks to market, distribute and sell the Product, during
the term of this Agreement, for all indications and for all agreed upon product
line extensions in the Territory.

         (c)   The license to Schwarz will be exclusive in that CIMA will not
grant any licenses of the Licensed Assets of the CIMA trademarks to any other
Person with respect to the Product or any other [***CONFIDENTIAL TREATMENT
REQUESTED, PORTION OMITTED FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION.***] products during the term of this Agreement.

         2.2   Sublicenses. Schwarz shall have the right to extend the
licenses granted pursuant to this Section 2 in whole or in part to any Affiliate
of Schwarz, provided that Schwarz is not then in default with respect to any of
its obligations to CIMA under this Agreement. All the terms and provisions of
this Agreement shall apply to the Affiliate to which this license has been
extended to the same extent as they apply to Schwarz, and the operations of the
Affiliate shall be deemed to be the operations of Schwarz and Schwarz shall
account therefor and be responsible for the performance of such Affiliate of all
of its obligations hereunder. In addition, Schwarz shall have the right to
extend the licenses granted pursuant to this Section 2 in whole or in part to
Persons who are not Affiliates of Schwarz with the prior written consent of
CIMA, such consent not to be unreasonably withheld or delayed.

         2.3   Marketing, Distribution and Sale. After the Launch, Schwarz
shall use its commercially reasonable efforts to market, distribute and sell the
Product in the Territory. Such efforts shall be consistent with industry norms,
given the product profile, product potential and the state of the market at
Launch.

         2.4   Minimum Annual Net Sales; Amendment to June Agreement.

         (a)   Subject to Section 4.1(c), Schwarz shall endeavor to meet or
exceed the minimum Annual Net Sales targets set forth on Schedule 2.4 hereto
with respect to the Product and the June Product. Any provision in this
Agreement to the contrary notwithstanding (but still subject

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                                                                  Exhibit 10.26

to Section 4.1(c)), in the event that Schwarz fails to meet the minimum Annual
Net Sales targets set forth on Schedule 2.4 hereto, CIMA's sole remedy for such
failure shall be, subject to Section 4.1(c), to (i) convert the exclusive
licenses granted in Section 2.1 to non-exclusive licenses, and/or (ii) reduce
the list of pharmaceutical products on Schedule 9.9(a) to those pharmaceutical
products that contain [***CONFIDENTIAL TREATMENT REQUESTED, PORTION OMITTED
FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.***] as their
primary active ingredient. In the event that Schwarz fails to meet the minimum
Annual Net Sales targets set forth on Schedule 2.4 hereto, CIMA may exercise any
remedies it is entitled to pursuant to this Section 2.4, if at all, by the
delivery of written notice thereof to Schwarz.

         (b)   Schwarz and CIMA hereby agree that the minimum Annual Net
Sales provision contained in Section 2.5 and Schedule 2.5 of the June Agreement
are hereby superseded and replaced by this Section 2.4 and Schedule 2.4 hereto
and that any references to Section 2.5 and/or Schedule 2.5 of the June Agreement
shall, mutatis mutandis, refer to this Section 2.4 and/or Schedule 2.4 hereto.

                                    SECTION 3

                               PRODUCT DEVELOPMENT

         3.1   Obligations of CIMA. CIMA shall be responsible for the
satisfactory performance of each of the development activities set forth on
Schedule 3.1 at least by the times set forth on Schedule 3.1.

         3.2   Obligations of Schwarz. Schwarz shall, in a timely fashion,
supply CIMA with sufficient quantities of API for CIMA to perform the
development activities described on Schedule 3.1 and the supply activities
described in Sections 5.1 and 5.5.

         3.3   License of Schwarz Technology. Schwarz hereby grants to CIMA a
non-exclusive license under the Schwarz Technology so that CIMA may carry out
its obligations under Section 3.1. Such license may not be sublicensed without
the prior written consent of Schwarz.

         3.4   Regulatory Matters. All Product supplied to Schwarz shall be
produced under cGMP and in accordance with the Specifications. CIMA shall
furnish Schwarz with a Certificate of Analysis with a cGMP statement to
demonstrate that each shipment of Product has been manufactured under cGMP and
other FDA guidelines and in accordance with the Specifications. In addition,
Schwarz reserves the right, at its own expense, to audit the facility of CIMA,
including its processes, records and other facets of the operation as may be
necessary to assure that all applicable regulations have been complied with, and
the Specifications have been met. CIMA shall permit duly authorized
representatives of Schwarz to audit all manufacturing and processing operations
at reasonable times with a prior appointment. The right to audit shall commence
with the effective date of this Agreement. These audits will be conducted to
assure compliance with all pertinent acts, regulations, and guidelines
promulgated by the FDA and other regulatory authorities, as well as standards
then in effect in the regulatory environment. Such

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                                                                  Exhibit 10.26

audits will be permitted during normal business hours and will be performed with
a minimum of disruption.

                                    SECTION 4

                   ROYALTY, COST OF GOODS AND MILESTONE PAYMENTS

         4.1   Royalty and Milestone Payments.

         (a)   Schwarz shall make royalty payments to CIMA, at the times, in
the amounts and subject to the conditions set forth on Schedule 4.1(a).

         (b)   Schwarz shall make the Development Fee Payments and Milestone
Payments to CIMA as set forth on Schedule 4.1(b).

         (c)   In the event of (i) any patent infringement, illegality or
severe side effect profile, that, in each case, has a materially adverse effect
on the Product, and/or (ii) occurrence of an interruption in the supply of the
Product for a period of 120 days or more, then, in each case, the obligation of
Schwarz to make any payments pursuant to Sections 4.1(a) or 4.1(b) or Schedules
4.1(a) or 4.1(b) or to meet any minimum Annual Net Sales targets pursuant to
Section 2.5 or Schedule 2.5 shall, in each case, terminate and be deemed waived
by CIMA and shall be promptly renegotiated in good faith by Schwarz and CIMA.
Any renegotiated obligations pursuant to this Section 4.1(c) shall be
retroactively effective to the date the applicable event described above
occurred.

         4.2   Records and Audit. Schwarz and its Affiliates shall keep full,
true and accurate books of account containing all particulars that may be
necessary for the purpose of showing the amounts payable to CIMA hereunder. Such
books of account shall be kept at Schwarz's principal place of business or the
principal place of business of the appropriate Affiliate of Schwarz to which
this Agreement relates. Such books and the supporting data shall be open, at all
reasonable times and upon reasonable notice during the term of this Agreement
and for 2 years after its termination, to the inspection by a firm of certified
public accountants selected by CIMA and reasonably acceptable to Schwarz, for
the limited purpose of verifying Schwarz's royalty statements; provided,
however, that such examination shall not take place more often than once each
Year and shall not cover more than the preceding 3 Years, with no right to audit
any period previously audited. Except as otherwise provided in this Section, the
cost of any such examination shall be paid by CIMA. In the event that any such
inspection reveals a deficiency in excess of 5% of the reported royalty for the
period covered by the inspection, Schwarz shall promptly pay CIMA the
deficiency, plus interest at the rate of 8% per annum, and shall reimburse CIMA
for the fees and expenses paid to such accountants in connection with their
inspection. In the event that any such inspection reveals a deficiency that is
less than 5% of the reported royalty for the period covered by the inspection,
Schwarz shall promptly pay CIMA the deficiency, plus interest at the rate of 8%
per annum. The parties agree that neither party shall be required to retain
books and records with respect to the above other than books and records
relating to the current Year and the immediately preceding 3 Years.

         4.3   Quarterly Reports of Royalties. In any Year, Schwarz shall,
within 60 days after the end of each Quarter, deliver to CIMA true and accurate
reports, certified by an authorized

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                                                                  Exhibit 10.26

official of Schwarz, setting forth the actual Annual Net Sales and total
royalties due under Section 4.1(a) for such Year. If no royalties are due,
Schwarz shall so report.

                                    SECTION 5

                                SUPPLY OF PRODUCT

         5.1   Supply of Product.

         (a)   For the term of this Agreement, or for as long as CIMA
manufactures the Product, whichever is shorter, Schwarz agrees to purchase from
CIMA and CIMA agrees to supply Schwarz with all of Schwarz's requirements for
the Product, Product samples and Product placebos for their subsequent use,
sale, lease or transfer by Schwarz.

         (b)   Schwarz agrees to initiate purchases of the Product, Product
samples and Product placebos hereunder by issuing CIMA binding purchase orders
not less than 90 days prior to the required shipping date set forth therein.
CIMA agrees to accept any order issued in accordance with this Section 5.1(b)
and to meet the delivery dates specified thereon. All purchase orders hereunder
shall be on Schwarz's standard purchase order form (a copy of which is attached
as Schedule 5.1(b) hereto and which shall not, for purposes of this Agreement
only, be modified in any material respect without CIMA's prior written consent,
such consent not to be unreasonably withheld or delayed) and shall be directed
to CIMA at the address set forth below. The terms and conditions of purchase
enumerated on the reverse side of such standard purchase order form shall
prevail over any inconsistent or conflicting language as may exist on invoices,
confirmation or order acknowledgment forms of CIMA, provided, however, that in
the event any terms thereof are in conflict, or are inconsistent with any terms
of this Agreement, the terms and conditions hereof shall prevail. No Product
delivered by CIMA shall have a shelf life that is more than two months less than
the maximum shelf life of such product; and, in any case, all Product delivered
by CIMA shall have at least 22 months of shelf life remaining upon delivery to
Schwarz (other than batches that were under investigation and batches for
validation which shall have at least 18 months of shelf life remaining upon
delivery to Schwarz).

         (c)   Purchase order quantities shall be in batch sizes of 1,000,000
tablets per batch unless otherwise mutually agreed by the parties. The delivery
quantity of blistered tablets shall not exceed 4,000,000 tablets in any calendar
month; provided that this limitation shall not apply to bulk tablets.

         (d)   Schwarz shall provide the amount of API that CIMA requires to
perform its obligations pursuant to Schedule 3.1 and Sections 5.1 and 5.5 at no
charge to CIMA sixty (60) days prior to date of tablet manufacture, as well as
one (1) month of safety stock. API must conform to Schwarz's then current raw
materials specifications. CIMA shall not be accountable for production or
shipment delays due to lack of API.

         (e)   EXCEPT AS SPECIFICALLY PROVIDED HEREIN, THE PRODUCT WILL BE
SUPPLIED BY CIMA WITH NO WARRANTIES OF ANY KIND, EXPRESS OR IMPLIED, INCLUDING
ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE.

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                                                                  Exhibit 10.26

         5.2   Identification. Schwarz may market the Product under its name,
with its packaging and logo; Schwarz will, however, identify CIMA as the
supplier in a fair manner, reasonably acceptable to CIMA. CIMA will bear all the
costs of labeling the Product so as to appropriately display the Schwarz name
provided Schwarz supplies all the appropriate graphics, designs, logos and
related and appropriate artwork; provided that Schwarz shall reimburse CIMA for
any costs incurred by CIMA in making changes to the packaging required to
manufacture the Product in accordance with changes to the PDMA or other
applicable law or changes required by Schwarz, including, but not limited to
plate and die charges due to label changes and product identification
requirements, and for any packaging components rendered obsolete by the changes.
In addition, CIMA shall pay for all initial one-time, set-up charges incurred by
CIMA in respect of packaging the Product. Schwarz may use CIMA's name and
derivations thereof in promoting, marketing and selling the Product in the
Territory; provided, however, that the particular formulation of any reference
to CIMA's name in any promotional material shall be subject to CIMA's review and
consent; and provided, further, that once the formulation of any such reference
has been reviewed and consented to by CIMA, any subsequent reference to CIMA's
name using such formulation shall not be subject to the further review or
consent of CIMA. All samples shall be clearly marked "for sample use only" or
some similar phrasing suggested by Schwarz.

         5.3   Trade, Sample and Placebo Product Price. CIMA shall supply
Product, Product samples and Product placebos to Schwarz at the price set forth
on Schedule 5.3.

         5.4   Forecasts, Delivery and Quality.

         (a)   Schwarz shall provide CIMA with 12-month non-binding forecasts
within 15 days after the end of each Quarter. Such forecasts shall be revised
and extended in each succeeding Quarter.

         (b)   Delivery of the Product, Product samples and Product placebos
shall be in accordance with the means of transportation, destination and dates
set forth in Schwarz's purchase order. Delivery shall be F.O.B. point of origin,
freight collect.

         (c)   All deliveries of the Product hereunder shall include a
Certificate of Analysis provided by the quality control manager of CIMA
attesting to the fact that such the Product (i) has been manufactured by a
process which complies with cGMP and (ii) are of quality which is in accordance
with criteria established in the Specifications and all FDA requirements.

         (d)   The Product, Product samples and Product placebos supplied
hereunder shall have been manufactured by a process which complies with the
quality assurance addendum set forth on Schedule 5.4(d).

         5.5   Rejection and Replacement.

         (a)   In the event Schwarz determines that any Product, Product
samples or Product placebos as manufactured and/or packaged by CIMA is
Defective, then, within 30 days after delivery of such Product, Product samples
or Product placebos to Schwarz (or, in the event that such Product, Product
samples or Product placebos is Defective as a result of a latent defect, within
30 days of the discovery of such latent defect), Schwarz shall provide to CIMA a
written notice of rejection, specifying in reasonable detail the manner in which
the Product is Defective

                                       9
<PAGE>   15

                                                                  Exhibit 10.26

(the "Notice of Rejection"). If no written Notice of Rejection is given to CIMA
by Schwarz within such 30 day period, such Product, Product samples or Product
placebos shall be deemed to have been accepted by Schwarz, provided, however,
that nothing contained in this Section 5.5(a) shall be deemed to relieve CIMA of
its obligations under the warranties set forth in Section 7 below.

         (b)   Upon receipt of a Notice of Rejection from Schwarz and in
order to minimize any hardship to Schwarz's customers, CIMA shall use its best
efforts to promptly supply to Schwarz a quantity of replacement Product, Product
samples or Product placebos meeting the Specifications equal to the size of the
lot which Schwarz claims was Defective so that such replacement Product shall be
received by Schwarz within 30 days following CIMA's receipt of Schwarz's Notice
of Rejection. All actual and documented costs and expenses directly relating to
any rejection and replacement pursuant to this Section 5.5 shall be paid by
CIMA.

         5.6   Invoice and Payment. Upon shipment of any Product, Product
samples or Product placebos, CIMA shall be entitled to submit invoices therefor
to Schwarz, and Schwarz agrees to remit payment within 45 days from receipt of
the invoice.

         5.7   Supply Disruption; Alternate Manufacturing Site.

         (a)   CIMA shall use its best efforts to supply Schwarz with the
Product in a timely manner in accordance with the orders and forecasts received
by CIMA pursuant to Sections 5.1(b) and 5.4(a), respectively. In any consecutive
120 day period, should CIMA fail to supply Schwarz with any of the Product
ordered for such 120 day period pursuant to Section 5.1(b), Schwarz shall have
the right to require CIMA to transfer the manufacture of the Product to
Schwarz's Seymour facility or other designated facility. CIMA will assume all
costs of such transfer. Should CIMA cure its failure to supply, CIMA shall have
the right to resume the manufacture of the Product and Schwarz and CIMA shall,
at CIMA's expense, transfer the manufacture of the Product back to CIMA within a
commercially reasonable amount of time.

         (b)   CIMA and Schwarz shall, as soon as practicable following the
date of Launch, qualify a manufacturing plant designated by Schwarz as an
alternate FDA approved manufacturing and packaging site for the Product. The
costs of obtaining such approval shall be borne equally by CIMA and Schwarz.

         5.8   CIMA's Obligation to Continue Manufacture. If this Agreement
terminates or expires through no breach of Schwarz, CIMA shall reasonably
cooperate with Schwarz in transferring the manufacture of the product to
Schwarz, its Affiliate or, subject to confidentiality obligations consistent
with Section 9.4, a third-party appointed by Schwarz, the parties shall develop
a schedule for the transfer of the manufacture of the Product and CIMA shall
continue to supply the Product to Schwarz pursuant to the terms of this
Agreement until twenty-four (24) months from the date this Agreement is
terminated or expires pursuant to Section 11.1.

                                       10
<PAGE>   16
                                                                  Exhibit 10.26

                                    SECTION 6

                      CONDITIONS PRECEDENT TO THE CLOSING;
                                  CLOSING DATE

         6.1   Conditions Precedent to Schwarz's Obligations. Subject to
waiver as set forth in Section 12.3, all obligations of Schwarz to close the
transactions contemplated under this Agreement are subject to the fulfillment or
satisfaction of each of the following conditions precedent:

         (a)   Representations and Warranties True as of the Closing Date.
The representations and warranties of CIMA contained in this Agreement or in any
schedule, certificate or document delivered by CIMA to Schwarz pursuant to the
provisions hereof shall have been true on the date hereof and shall be true on
the Closing Date with the same effect as though such representations and
warranties were made as of such date.

         (b)   Compliance with this Agreement. CIMA shall have performed and
complied with all agreements and conditions required by this Agreement to be
performed or complied with by it prior to or by the Closing Date.

         (c)   Closing Certificate. Schwarz shall have received a certificate
from CIMA, executed by an officer of CIMA, certifying in such detail as Schwarz
may reasonably request that the conditions specified in Sections 6.1(a) and
6.1(b), above, have been fulfilled and certifying that CIMA has obtained all
consents and approvals required hereunder.

         (d)   No Threatened or Pending Litigation. On the Closing Date, no
suit, action or other proceeding, or injunction or final judgment relating
thereto, shall, to the best of CIMA's knowledge, be threatened or be pending
before any court or governmental or regulatory official, body or authority in
which it is sought to restrain or prohibit or to obtain damages or other relief
in connection with this Agreement or the consummation of the transactions
contemplated hereby, and no investigation that might result in any such suit,
action or proceeding shall be pending or, to the best of CIMA's knowledge,
threatened.

         6.2   Conditions Precedent to CIMA's Obligations. Subject to waiver
as set forth in Section 12.3, all obligations of CIMA to close the transactions
contemplated under this Agreement are subject to the fulfillment or satisfaction
of each of the following conditions precedent:

         (a)   Representations and Warranties True as of the Closing Date.
The representations and warranties of Schwarz contained in this Agreement or in
any schedule, certificate or document delivered by Schwarz to CIMA pursuant to
the provisions hereof shall have been true on the date hereof and shall be true
on the Closing Date with the same effect as though such representations and
warranties were made as of such date.

         (b)   Compliance with this Agreement. Schwarz shall have performed
and complied with all agreements and conditions required by this Agreement to be
performed or complied with by it prior to or by the Closing Date.

                                       11
<PAGE>   17

                                                                  Exhibit 10.26

         (c)   Closing Certificate. CIMA shall have received a certificate
from Schwarz, executed by an officer of Schwarz, certifying in such detail as
CIMA may reasonably request that the conditions specified in Sections 6.2(a) and
6.2(b), above, have been fulfilled and certifying that Schwarz has obtained all
consents and approvals required hereunder.

         (d)   No Threatened or Pending Litigation. On the Closing Date, no
suit, action or other proceeding, or injunction or final judgment relating
thereto, shall, to the best of Schwarz's knowledge, be threatened or be pending
before any court or governmental or regulatory official, body or authority in
which it is sought to restrain or prohibit or to obtain damages or other relief
in connection with this Agreement or the consummation of the transactions
contemplated hereby, and no investigation that might result in any such suit,
action or proceeding shall be pending or, to the best of Schwarz's knowledge,
threatened.

         6.3   Closing Date.

         (a)   Subject to Section 6.3(b), below, the closing of the
transactions contemplated by this Agreement shall take place at 10:00 a.m.,
local time, on September 29, 2000, or on such other date as may be mutually
agreed upon in writing by the parties (the "Closing Date"), at the offices of
Mayer, Brown & Platt, 1675 Broadway, New York, New York 10019.

         (b)   Each party hereby agrees to use its best efforts to consummate
the transactions contemplated herein, as modified, on or before September 29,
2000; provided, however, that if the parties are unable to close the
transactions contemplated hereby by October 31, 2000, or such later date as
shall be mutually agreed to in writing by CIMA and Schwarz, then all of the
rights and obligations of the parties under this Agreement shall terminate
without liability.

                                    SECTION 7

                     REPRESENTATIONS AND WARRANTIES OF CIMA

         CIMA hereby represents and warrants to Schwarz that:

         7.1   Organization, Power and Authority. CIMA is a corporation duly
organized and validly existing under the laws of the State of Delaware. CIMA has
all necessary corporate power and authority to enter into, and be bound by the
terms and conditions of, this Agreement, and to license the Licensed Assets and
the CIMA Trademarks to Schwarz pursuant hereto.

         7.2   Due Authority; No Breach. The execution, delivery and
performance by CIMA of this Agreement and each agreement or instrument
contemplated by this Agreement, and the performance of the transactions
contemplated hereby and thereby, have been duly authorized by all necessary
corporate action by CIMA. This Agreement is, and each agreement or instrument
contemplated by this Agreement, when executed and delivered by CIMA in
accordance with the provisions hereof, will be (assuming the due execution and
delivery hereof and thereof by Schwarz) the legal, valid and binding obligation
of CIMA, in each case enforceable against CIMA in accordance with its terms,
except as such enforceability may be limited by applicable bankruptcy,
insolvency, moratorium, reorganization, or similar laws from time to time in
effect

                                       12
<PAGE>   18

                                                                  Exhibit 10.26

which affect the enforcement of creditors' rights generally and by legal and
equitable limitations on the availability of specific performance and other
equitable remedies against CIMA. All persons who have executed this Agreement on
behalf of CIMA, or who will execute on behalf of CIMA any agreement or
instrument contemplated by this Agreement, have been duly authorized to do so by
all necessary corporate action. Neither the execution and delivery of this
Agreement or any such other agreement or instrument by CIMA, nor the performance
of the obligations contemplated hereby and thereby, will (i) conflict with or
result in any violation of or constitute a breach of any of the terms or
provisions of, or result in the acceleration of any obligation under, or
constitute a default under any provision of the articles of incorporation or
by-laws of CIMA or any material contract or any other material obligation to
which CIMA is a party or to which it is subject or bound, or (ii) violate any
judgment, order, injunction, decree or award of any court, administrative
agency, arbitrator or governmental body against, or affecting or binding upon,
CIMA or upon the securities, property or business of CIMA, or (iii) constitute a
violation by CIMA of any applicable law or regulation of any jurisdiction as
such law or regulation relates to CIMA, or to the property or business of CIMA
except for such conflict, acceleration, default, breach or violation that is not
reasonably likely to have a material adverse effect on CIMA's ability to perform
its obligations under this Agreement or under any agreement or instrument
contemplated hereby.

         7.3   Intellectual Property. CIMA is the lawful owner of the
Licensed Assets and CIMA Trademarks, CIMA can license the Licensed Assets and
CIMA Trademarks without the consent of any third party, there is no pending or
overtly threatened claim against CIMA asserting that any of the Licensed Assets
and CIMA Trademarks infringes or violates the rights of third parties or that
Schwarz, by practicing under the Licensed Assets and CIMA Trademarks in
performing the Activities, would violate any of the intellectual property rights
of any third party, and nothing has come to the attention of CIMA which has, or
reasonably should have, led CIMA to believe that any of the Licensed Assets and
CIMA Trademarks infringes or violates the right of third parties. CIMA has not
given any notice to any third parties asserting infringement by such third
parties upon any of the Licensed Assets and CIMA Trademarks. CIMA is not aware
of and has not received any communications challenging the ownership, validity
or effectiveness of any of the Licensed Assets and CIMA Trademarks. CIMA has not
granted any right to any third party relating to the Activities which would
violate the terms of or conflict with the rights granted to Schwarz pursuant to
this Agreement.

         7.4   Technology Rights. The CIMA Technology, when combined with the
Schwarz Technology, includes all the technology, patents, know-how, trade
secrets and other intellectual property necessary to manufacture the Product.

         7.5   Litigation. There are no pending or, to the best of CIMA's
knowledge, threatened judicial, administrative or arbitral actions, claims,
suits or proceedings pending as of the date hereof against CIMA relating to the
Activities, the Licensed Assets or the CIMA Trademarks which, either
individually or together with any other, would have a material adverse effect on
the Activities, the Licensed Assets, the CIMA Trademarks or the ability of CIMA
to perform its obligations under this Agreement or any agreement or instrument
contemplated hereby. There are no pending, and CIMA does not presently
contemplate bringing, any actions or suits relating to the Activities, the
Licensed Assets or the CIMA Trademarks against others.

                                       13
<PAGE>   19

                                                                  Exhibit 10.26

         7.6   Governmental Approval. No consent, approval, waiver, order or
authorization of, or registration, declaration or filing with, any governmental
authority is required in connection with the execution, delivery and performance
of this Agreement, or any agreement or instrument contemplated by this
Agreement, by CIMA or the performance by CIMA of its obligations contemplated
hereby and thereby.

         7.7   Brokerage. No broker, finder or similar agent has been
employed by or on behalf of CIMA, and no Person with which CIMA has had any
dealings or communications of any kind is entitled to any brokerage commission,
finder's fee or any similar compensation, in connection with this Agreement or
the transactions contemplated hereby.

                                    SECTION 8

                    REPRESENTATIONS AND WARRANTIES OF SCHWARZ

         Schwarz represents and warrants to CIMA that:

         8.1   Organization, Power and Authority. Schwarz is a corporation
duly organized, validly existing and in good standing under the laws of the
State of Delaware. Schwarz has all necessary corporate power and authority to
enter into, and be bound by the terms and conditions of, this Agreement, to
license the Licensed Assets, the Patents and the CIMA Technology from CIMA, and
to license the Schwarz Technology to CIMA pursuant hereto.

         8.2   Due Authority; No Breach. The execution, delivery and
performance by Schwarz of this Agreement, and each agreement or instrument
contemplated by this Agreement, and the performance of the transactions
contemplated hereby and thereby, have been duly authorized by all necessary
corporate action by Schwarz. This Agreement is, and each agreement or instrument
contemplated by this Agreement, when executed and delivered by Schwarz in
accordance with the provisions hereof, will be (assuming due execution and
delivery hereof and thereof by CIMA) the legal, valid and binding obligation of
Schwarz, in each case enforceable against Schwarz in accordance with its terms,
except as such enforceability may be limited by applicable bankruptcy,
insolvency, moratorium, reorganization, or similar laws from time to time in
effect which affect the enforcement of creditors' rights generally and by legal
and equitable limitations on the availability of specific performance and other
equitable remedies against Schwarz. All persons who have executed this Agreement
on behalf of Schwarz, or who will execute on behalf of Schwarz any agreement or
instrument contemplated by this Agreement, have been duly authorized to do so by
all necessary corporate action. Neither the execution and delivery of this
Agreement by Schwarz, or any such other agreement or instrument by Schwarz, nor
the performance of the obligations contemplated hereby and thereby, will (i)
conflict with or result in any violation of or constitute a breach of any of the
terms or provisions of, or result in the acceleration of any obligation under,
or constitute a default under any provision of its articles of incorporation or
by-laws or any material contract or any other material obligation to which
Schwarz is a party or to which it is subject or bound, or (ii) violate any
judgment, order, injunction, decree or award of any court, administrative
agency, arbitrator or government body against, or affecting or binding upon,
Schwarz or upon the securities, property or business of Schwarz, or (iii)
constitute a violation by Schwarz of any applicable law or regulation of any
jurisdiction as such law or regulation relates to Schwarz or to the property or
business of Schwarz, except for such conflict, acceleration, default, breach or
violation that is not reasonably

                                       14

<PAGE>   20

                                                                  Exhibit 10.26

likely to have a material adverse effect on Schwarz's ability to perform its
obligations under this Agreement or any agreement or instrument contemplated
hereby.

         8.3   Brokerage. No broker, finder or similar agent has been
employed by or on behalf of Schwarz and no Person with which Schwarz has had any
dealings or communications of any kind is entitled to any brokerage commission,
finder's fee or any similar compensation, in connection with this Agreement or
the transactions contemplated hereby.

         8.4   Litigation. There are no pending or, to the best of Schwarz's
knowledge, threatened judicial, administrative or arbitral actions, claims,
suits or proceedings pending as of the date hereof against Schwarz which, either
individually or together with any other, will have a material adverse effect on
the ability of Schwarz to perform its obligations under this Agreement or any
agreement or instrument contemplated hereby or affect adversely the grant to
CIMA of the non-exclusive license of the Schwarz Technology pursuant to Section
3.3.

         8.5   Governmental Approval. No consent, approval, waiver, order or
authorization of, or registration, declaration or filing with, any governmental
authority is required in connection with the execution, delivery and performance
of this Agreement, or any agreement or instrument contemplated by this
Agreement, by Schwarz or the performance by Schwarz of its obligations
contemplated hereby and thereby.

                                    SECTION 9

                            ADDITIONAL COVENANTS AND
                            AGREEMENTS OF THE PARTIES

         9.1   Governmental Filings. CIMA and Schwarz each agree to prepare
and file whatever filings, listings, requests or applications are required to be
filed with any governmental authority in connection with this Agreement or the
Product and to cooperate with one another as reasonably necessary to accomplish
the foregoing.

         9.2   Compliance with Law. Schwarz and CIMA shall each comply with
all federal, state and local laws and regulations applicable to developing,
approving, manufacturing, marketing and selling the Product in the Territory,
the Licensed Assets, the Patents and the Technology or the performance of their
respective obligations hereunder. CIMA and Schwarz each shall keep all records
and reports required to be kept by applicable laws and regulations, and each
shall make its facilities available at reasonable times during business hours
for inspection by representatives of governmental agencies. CIMA and Schwarz
each shall notify the other within forty-eight (48) hours of receipt of any
notice or any other indication whatsoever of any FDA or other governmental
agency inspection, investigation or other inquiry, or other material notice or
communication of any type, involving the Product. Schwarz and CIMA shall
cooperate with each other during any such inspection, investigation or other
inquiry including, but not limited to, allowing upon request a representative of
the other to be present during the applicable portions of any such inspection,
investigation or other inquiry and providing copies of all relevant documents.
Schwarz and CIMA shall discuss any written response to observations or
notifications received in connection with any such inspection, investigation or
other inquiry and each shall give the other an opportunity to comment upon any
proposed response before it is made. In the event of disagreement concerning the
form or content of such response, however, CIMA shall be responsible for
deciding the appropriate form and content of any response with

                                       15
<PAGE>   21

                                                                  Exhibit 10.26

respect to any of its cited activities and Schwarz shall be responsible for
deciding the appropriate form and content of any response with respect to any of
its cited activities.

         9.3   Recall. Schwarz and CIMA shall consult with one another as to
all decisions concerning recall or withdrawal of the Product from the market,
including, but not limited to, determining whether or not to make any such
recall or withdrawal, the timing and scope thereof, and the means of conducting
any recall or withdrawal. The party requesting any recall or withdrawal must
receive the prior written consent of the other party, such consent not to be
unreasonably withheld, prior to initiating such recall or withdrawal. No consent
shall be necessary if the recall or withdrawal is requested by the FDA or other
governmental authority. CIMA shall bear the costs (including but not limited to,
shipping and product credits) for any recall or withdrawal primarily due to the
failure of the product integrity of the Product, including but not limited to,
CIMA's failure to comply with this Agreement, cGMP, the PDMA or the
Specifications. The costs for any other recall or withdrawal shall be the
responsibility of Schwarz.

         9.4   Confidentiality. Schwarz shall treat as confidential the Licensed
Assets, the Patents, the CIMA Technology, and all other information of CIMA of
which Schwarz becomes aware in connection with this Agreement (collectively,
"CIMA Proprietary Information"). Schwarz shall neither disclose CIMA Proprietary
Information to any third party nor use CIMA Proprietary Information for any
purpose other than as set forth in this Agreement. CIMA shall treat as
confidential the Schwarz Technology and all other information of Schwarz of
which CIMA becomes aware in connection with this Agreement (collectively,
"Schwarz Proprietary Information"). CIMA shall neither disclose Schwarz
Proprietary Information to any third party nor use Schwarz Proprietary
Information for any purpose other than as set forth in this Agreement.

         Nothing contained herein will in any way restrict or impair either
party's (the "Using Party's") right to use, disclose or otherwise deal with any
Proprietary Information of the other party which:

         (a)   at the time of disclosure is known to the public or thereafter
becomes known to the public by publication or otherwise through no fault of the
Using Party;

         (b)   the Using Party can establish was in its possession prior to
the time of the disclosure and was not obtained directly or indirectly from the
other party;

         (c)   is independently made available as a matter of right to the
Using Party by a third party who is not thereby in violation of a confidential
relationship with the other party;

         (d)   is developed by the Using Party independently of the
Proprietary Information received from the other party and the Using Party can
establish such development; or

         (e)   is information required to be disclosed by legal or regulatory
process; provided, in each case the Using Party timely informs the other party
and uses reasonable efforts to limit the disclosure and maintain confidentiality
to the extent possible and permits the other party to intervene and contest or
attempt to limit the disclosure.

                                       16
<PAGE>   22

                                                                  Exhibit 10.26

         Schwarz shall obtain no right or license of any kind under the CIMA
Proprietary Information except as set forth in this Agreement. CIMA shall obtain
no right or license of any kind under the Schwarz Proprietary Information except
as set forth in this Agreement.

         9.5   Expenses. CIMA and Schwarz shall each bear their own direct
and indirect expenses incurred in connection with the negotiation and
preparation of this Agreement and, except as set forth in this Agreement, the
performance of the obligations contemplated hereby.

         9.6   Reasonable Efforts. CIMA and Schwarz each hereby agrees to use
all reasonable efforts to take, or cause to be taken, all actions and to do, or
cause to be done all things necessary or proper to make effective the
transactions contemplated by this Agreement, including such actions as may be
reasonably necessary to obtain approvals and consents of governmental Persons
and other Persons.

         9.7   Publicity. The parties agree that no publicity release or
announcement concerning the transactions contemplated hereby shall be issued
without the advance written consent of the other, except as such release or
announcement may be required by law, in which case the party making the release
or announcement shall, before making any such release or announcement, afford
the other party a reasonable opportunity to review and comment upon such release
or announcement.

         9.8   Cooperation. If either party shall become engaged in or
participate in any investigation, claim, litigation or other proceeding with any
third party, including the FDA, relating in any way to the Product or any of the
Licensed Assets, the Patents or the Technology, the other party shall cooperate
in all reasonable respects with such party in connection therewith, including,
without limitation, using its reasonable efforts to make available to the other
such employees who may be helpful with respect to such investigation, claim,
litigation or other proceeding, provided that, for purposes of this provision,
reasonable efforts to make available any employee shall be deemed to mean
providing a party with reasonable access to any such employee at no cost for a
period of time not to exceed 24 hours (e.g., three 8-hour business days).
Thereafter, any such employee shall be made available for such time and upon
such terms and conditions (including, but not limited to, compensation) as the
parties may mutually agree.

         9.9   Competition; No Sale for Resale.

         (a)   CIMA agrees that, commencing on the Closing Date and
continuing for the period ending five (5) years after the term of this
Agreement, it shall not directly or indirectly, engage in any activity in
competition with the Activities in the Territory. Subject to Section 2.5, such
prohibited activity shall include, without limitation, using or licensing to any
third party for use, the Licensed Assets or CIMA Trademarks in connection with
(i) any pharmaceutical product listed on Schedule 9.9(a)(i) in the Territory
during the period commencing on the Closing Date and ending at the end of the
term of this Agreement; provided, however, that the non-competition period with
respect to any pharmaceutical product containing the active ingredient
[***CONFIDENTIAL TREATMENT REQUESTED, PORTION OMITTED FILED SEPARATELY WITH THE
SECURITIES AND EXCHANGE COMMISSION.***] shall continue for an additional five
(5) years after the term of this Agreement or (ii) any pharmaceutical product
listed on Schedule 9.9(a)(ii) in the Territory during the period commencing on
the Closing Date and ending five (5) years after the Closing. It is further

                                       17
<PAGE>   23

                                                                  Exhibit 10.26

understood that the remedies at law are inadequate in the case of any breach of
this covenant and that Schwarz shall be entitled to equitable relief, including
the remedy of specific performance, with respect to any breach of such covenant.

         (b)   Neither Schwarz nor any sublicensee of Schwarz shall knowingly
sell any Product to anyone in the Territory for subsequent distribution or
resale outside the Territory and each shall take all reasonable precautions to
prevent such distribution or resale outside the Territory. CIMA shall not
knowingly sell any Product to anyone in the Territory or outside the Territory
for subsequent distribution or resale in the Territory and CIMA shall take all
reasonable precautions to prevent such distribution or resale in the Territory.

         9.10   Conflicting Rights. CIMA shall not grant any right to any
third party relating to the Activities which would violate the terms of or
conflict with the rights granted to Schwarz pursuant to this Agreement.

         9.11   Patent and Trademark Maintenance.

         (a)   CIMA shall be solely responsible for filing, prosecuting, and
maintaining all of the CIMA Patents, and CIMA shall pay the costs associated
therewith. CIMA shall file, prosecute, and maintain all CIMA Patents so as to
fully continue the benefits under the licenses granted to Schwarz hereunder.
CIMA may, however, discontinue prosecuting and maintaining any CIMA Patent if
(i) CIMA has a valid business reason to do so, and (ii) obtains the prior
written approval of Schwarz, such approval not to be unreasonably withheld or
delayed.

         (b)   CIMA shall be solely responsible for filing, prosecuting, and
maintaining all CIMA Trademarks, and CIMA shall pay the costs associated
therewith. All registrations, variations, logos, goodwill and other rights under
or acquired through use of the CIMA Trademarks shall accrue and belong to CIMA.
Except as provided herein, Schwarz shall have no rights to use the CIMA
Trademarks. Schwarz will not use in its business, in or outside of the
Territory, any other mark or name which is similar to or nearly resembles any of
the CIMA Trademarks in use by CIMA to indicate the source and origin of the CIMA
Technology as to be likely to cause deception or confusion. Schwarz recognizes
that CIMA is the owner of all CIMA Trademarks used in commerce to indicate the
source of the CIMA Technology and agrees that the CIMA Trademarks shall remain
vested in CIMA both during the term of this Agreement and thereafter. Schwarz
shall not contest the validity of the CIMA Trademarks or CIMA's ownership of the
CIMA Trademarks. Use of the CIMA Trademarks by Schwarz in conjunction with the
manufacture, use, and sale of the Product and all goodwill related thereto shall
inure to the benefit of CIMA for purposes of building the longevity and extent
of use of the CIMA Trademarks.

         (c)   Schwarz shall be solely responsible for filing, prosecuting,
and maintaining all trademarks it develops or owns for the Product (the "Schwarz
Trademarks"), and Schwarz shall pay the costs associated therewith. All
registrations, variations, logos, goodwill and other rights under or acquired
through use of the Schwarz Trademarks shall accrue and belong to Schwarz. CIMA
shall have no rights to use the Schwarz Trademarks, including, without
limitation, in connection with any product subsequently developed by CIMA
pursuant to Section 2.4. CIMA will not use in its business, in or outside of the
Territory, any other mark or name which is similar to or nearly resembles the
Schwarz Trademarks in use by Schwarz in a manner that is likely to

                                       18
<PAGE>   24

                                                                  Exhibit 10.26

cause deception or confusion. CIMA recognizes that Schwarz is the owner of all
of the Schwarz Trademarks used in commerce to indicate the source of the Product
and agrees that the Schwarz Trademarks shall remain vested in Schwarz both
during the term of this Agreement and thereafter. CIMA shall not contest the
validity of the Schwarz Trademarks or Schwarz's ownership of the Schwarz
Trademarks. Use of the Schwarz Trademarks by Schwarz in conjunction with the
manufacture, use, and sale of the Product and all goodwill related thereto shall
inure to the benefit of Schwarz for purposes of building the longevity and
extent of use of the Schwarz Trademarks.

         (d)   Schwarz and CIMA agree that, where applicable, all packaging
of the Product shall identify (i) the number of the CIMA Patents and CIMA as the
owner thereof and (ii) Schwarz as the owner of the Schwarz Trademarks.

         (e)   Any improvements to the CIMA Technology (whether or not
patentable) shall be owned solely by CIMA.

         (f)   Any improvements to the Schwarz Technology (whether or not
patentable) shall be owned solely by Schwarz.

         (g)   Schwarz shall have full ownership rights to the Product and,
with the exception of any improvements to the CIMA Technology as contemplated by
Section 9.11(e), any patents, know-how or other intellectual property that
relate to the Product and are discovered during the development process
contemplated hereby.

         (h)   Any provisions in this Agreement to the contrary
notwithstanding, Schwarz acknowledges that, for all purposes, CIMA is the owner
of the CIMA Technology and CIMA acknowledges that, for all purposes, Schwarz is
the owner of the Schwarz Technology.

         9.12  Infringement; Enforcement of Proprietary Rights.

         (a)   Infringement of Patent Rights. Each party shall promptly
notify the other of any alleged infringement by third parties of any CIMA Patent
and provide any information available to that party relating to such alleged
infringement. CIMA shall have the responsibility to investigate such alleged
infringement and act diligently, at its own expense, to end any infringement of
such rights that materially affect Schwarz's rights pursuant to this Agreement,
including, but not limited to, bringing suit against such third party infringer.
In the event that CIMA does not bring suit against such third party infringer,
Schwarz may, at its own expense, bring suit against such third party infringer
on CIMA's behalf.

         (b)   Procedures. No settlement, consent judgment or other voluntary
final disposition of any suit contemplated by Section 9.12(a) may be entered
into without the consent of each party, which consent shall not be unreasonably
withheld or delayed. Any recovery of damages in any such suit shall be retained
by the party bearing the costs of such suit. In the event of any infringement
suit against a third party brought by either party pursuant to this Section
9.12, the party not bringing such suit shall cooperate in all respects, execute
any documents reasonably necessary to permit the other party to prosecute such
suit, and to the extent reasonable shall make available its employees and
relevant records to provide evidence for such suit.

                                       19
<PAGE>   25

                                                                  Exhibit 10.26

         (c)   Infringement of Third Party Rights. If, during the term of
this Agreement, any third party (other than an Affiliate of Schwarz) claims that
Schwarz's marketing or selling of the Product hereunder infringes on a third
party patent based upon claims that dominate claims in the Patents, within 120
days after notice by Schwarz, CIMA shall use its reasonable best efforts to
procure for Schwarz the right to exercise all rights licensed under this
Agreement without any additional payment therefor by Schwarz.

         9.13  Supply of Product. CIMA shall maintain sufficient capacity
throughout the term of this Agreement to meet the requirements of Schwarz for
the supply of Product hereunder.

         9.14  Liability Insurance. At and after Launch, CIMA shall use its
best efforts to obtain and carry in full force and effect product liability
insurance in respect of the Product in the amount of $10,000,000 per occurrence,
$10,000,000 in the aggregate. At and after Launch, Schwarz shall use its best
efforts to obtain and carry in full force and effect product liability insurance
in respect of the Product in the amount of $10,000,000 per occurrence,
$10,000,000 in the aggregate.

         9.15  Referral of Orders and Inquiries. CIMA shall refer all Persons
sending orders or making inquiries regarding the Product within the Territory to
Schwarz and shall promptly notify Schwarz of the name of each such Person and
the nature of the inquiry of such Person.

         9.16  Deemed Breach of Covenant. Neither CIMA nor Schwarz shall be
deemed to be in breach of any covenant contained in this Section 9 if such
party's deemed breach is the result of any action or inaction on the part of the
other party.

                                   SECTION 10

                                 INDEMNIFICATION

         10.1  Indemnification.

         (a)   CIMA shall indemnify, defend and hold Schwarz (and its
directors, officers, employees, and Affiliates) harmless from and against any
and all Damages incurred or suffered by Schwarz (and its directors, officers,
employees, and Affiliates) as a consequence of:

               (i)   any breach of any representation or warranty made by
CIMA in this Agreement or any agreement, instrument or document delivered by
CIMA pursuant to the terms of this Agreement;

               (ii)  any failure to perform duly and punctually any covenant,
agreement or undertaking on the part of CIMA contained in this Agreement;

               (iii) any act or omission of CIMA with respect to the operation
of CIMA's business, or the handling, manufacturing, sale, consumption
or use of the Product by CIMA; or

               (iv)  the infringement of the Licensed Assets, the Patent or the
Technology of any patent, trademark, copyright, trade secret or other
intellectual property right of any person other than CIMA or Schwarz.

                                       20
<PAGE>   26

                                                                  Exhibit 10.26

         (b)   Schwarz shall indemnify, defend and hold CIMA (and its
directors, officers, employees, and Affiliates) harmless from and against any
and all Damages incurred or suffered by CIMA (and its directors, officers,
employees, and Affiliates) as a consequence of:

               (i)   any breach of any representation or warranty made by
Schwarz in this Agreement or any agreement, instrument or document delivered by
Schwarz pursuant to the terms of this Agreement;

               (ii)  any failure to perform duly and punctually any covenant,
agreement or undertaking on the part of Schwarz contained in this Agreement; or

               (iii) any act or omission of Schwarz with respect to the
operation of Schwarz's business or the handling, manufacturing, sale,
consumption or use of the Product by Schwarz, including Schwarz's supply of
API hereunder.

         10.2  Notice and Opportunity To Defend. Promptly after receipt by a
party hereto of notice of any claim which could give rise to a right to
indemnification pursuant to Section 10.1. such party (the "Indemnified Party")
shall give the other party (the "Indemnifying Party") written notice describing
the claim in reasonable detail. The failure of an Indemnified Party to give
notice in the manner provided herein shall not relieve the Indemnifying Party of
its obligations under this Section, except to the extent that such failure to
give notice materially prejudices the Indemnifying Party's ability to defend
such claim. The Indemnifying Party shall have the right, at its option, to
compromise or defend, at its own expense and by its own counsel, any such matter
involving the asserted liability of the party seeking such indemnification. If
the Indemnifying Party shall undertake to compromise or defend any such asserted
liability, it shall promptly (and in any event not less than 10 days after
receipt of the Indemnified Party's original notice) notify the Indemnified Party
in writing of its intention to do so, and the Indemnified Party agrees to
cooperate fully with the Indemnifying Party and its counsel in the compromise or
defense against any such asserted liability. All reasonable costs and expenses
incurred in connection with such cooperation shall be borne by the Indemnifying
Party. If the Indemnifying Party elects not to compromise or defend the asserted
liability, fails to notify the Indemnified Party of its election to compromise
or defend as herein provided, fails to admit its obligation to indemnify under
this Agreement with respect to the claim, or, if in the reasonable opinion of
the Indemnified Party, the claim could result in the Indemnified Party becoming
subject to injunctive relief or relief other than the payment of money damages
that could materially adversely affect the ongoing business of the Indemnified
Party in any manner, the Indemnified Party shall have the right, at its option,
to pay, compromise or defend such asserted liability by its own counsel and its
reasonable costs and expenses shall be included as part of the indemnification
obligation of the Indemnifying Party hereunder. Notwithstanding the foregoing,
neither the Indemnifying Party nor the Indemnified Party may settle or
compromise any claim over the objection of the other; provided, however, that
consent to settlement or compromise shall not be unreasonably withheld. In any
event, the Indemnified Party and the Indemnifying Party may participate, at
their own expense, in the defense of such asserted liability. If the
Indemnifying Party chooses to defend any claim, the Indemnified Party shall make
available to the Indemnifying Party any books, records or other documents within
its control that are necessary or appropriate for such defense. Notwithstanding
anything to the contrary in this Section 10.2, (i) the party conducting the
defense of a claim shall (A) keep the other party informed on a reasonable and
timely basis as to the status of the defense of such claim (but only to the
extent such other party is not

                                       21
<PAGE>   27

                                                                  Exhibit 10.26

participating jointly in the defense of such claim), and (B) conduct the defense
of such claim in a prudent manner, and (ii) the Indemnifying Party shall not
cease to defend, settle or otherwise dispose of any claim without the prior
written consent of the Indemnified Party (which consent shall not be
unreasonably withheld).

         10.3  Indemnification Payment Obligation. No Indemnifying Party will
have any obligations under Sections 10.1(a) or 10.1(b) until the cumulative
aggregate amount of Damages incurred or suffered by the Indemnified Party which
the Indemnifying Party is otherwise subject to under this Agreement exceeds
$50,000 at which time the entire cumulative aggregate amount of such Damages
shall be covered. The provisions of this Section 10.3 shall not limit or
otherwise affect the obligations of any Indemnifying Party under any other
Section of this Agreement.

         10.4  Indemnification Payment Adjustments. The amount of any Damages
for which indemnification is provided under this Section 10 shall be reduced to
take account of any net tax benefit and shall be increased to take account of
any net tax detriment arising from the incurrence or payment of any such Damages
or from the receipt of any such indemnification payment and shall be reduced by
the insurance proceeds received and any other amount recovered, if any, by the
Indemnified Party with respect to any Damages; provided, however, that an
Indemnified Party shall not be subject to an obligation to pursue an insurance
claim relating to any Damages for which indemnification is sought hereunder. If
any Indemnified Party shall have received any payment pursuant to this Section
10 with respect to any Damages and shall subsequently have received insurance
proceeds or other amounts with respect to such Damages, then such Indemnified
Party shall pay to the Indemnifying Party an amount equal to the difference (if
any) between (i) the sum of the amount of those insurance proceeds or other
amounts received and the amount of the payment by such Indemnifying Party
pursuant to this Section 10 with respect to such Damages and (ii) the amount
necessary to fully and completely indemnify and hold harmless such Indemnified
Party from and against such Damages; provided, however, in no event will such
Indemnified Party have any obligation pursuant to this sentence to pay to such
Indemnifying Party an amount greater than the amount of the payment by such
Indemnifying Party pursuant to this Section 10 with respect to such Damages.

         10.3  Indemnification Payment. Upon the final determination of
liability and the amount of the indemnification payment under this Section 10,
the appropriate party shall pay to the other, as the case may be, within 10
business days after such determination, the amount of any claim for
indemnification made hereunder.

         10.4  Survival. The provisions of Section 10 shall survive any
termination of this Agreement. Each Indemnified Party's rights under Section 10
shall not be deemed to have been waived or otherwise affected by such
Indemnified Party's waiver of the breach of any representation, warranty,
agreement or covenant contained in or made pursuant this Agreement, unless such
waiver expressly and in writing also waives any or all of the Indemnified
Party's right under Section 10.

                                       22
<PAGE>   28

                                                                  Exhibit 10.26
                                   SECTION 11

                                   TERMINATION

         11.1  Termination. The term of this Agreement shall begin upon the
Closing Date and, unless sooner terminated as hereinafter provided, shall end
upon the expiration of the last Patent to expire or, if later, the expiration of
any other patent resulting from the development process contemplated hereby.
Notwithstanding the foregoing, this Agreement may be terminated as follows:

         (a)   Termination for Insolvency. If either Schwarz or CIMA (i)
makes a general assignment for the benefit of creditors or becomes insolvent;
(ii) files an insolvency petition in bankruptcy; (iii) petitions for or
acquiesces in the appointment of any receiver, trustee or similar officer to
liquidate or conserve its business or any substantial part of its assets; (iv)
commences under the laws of any jurisdiction any proceeding involving its
insolvency, bankruptcy, reorganization, adjustment of debt, dissolution,
liquidation or any other similar proceeding for the release of financially
distressed debtors; or (v) becomes a party to any proceeding or action of the
type described above in (iii) or (iv) and such proceeding or action remains
undismissed or unstayed for a period of more than 60 days, then the other party
may by written notice terminate this Agreement in its entirety with immediate
effect.

         (b)   Termination for Default. Schwarz and CIMA each shall have the
right to terminate this Agreement for default upon the other's failure to comply
in any material respect with the terms and conditions of this Agreement. At
least 60 days prior to any such termination for default, the party seeking to so
terminate shall give the other written notice of its intention to terminate this
Agreement in accordance with the provisions of this Section 11.1(b), which
notice shall set forth the default(s) which form the basis for such termination.
If the defaulting party fails to correct such default(s) within 60 days after
receipt of notification, then such party immediately may terminate this
Agreement. This Section 11.1(b) shall not be exclusive and shall not be in lieu
of any other remedies available to a party hereto for any default hereunder on
the part of the other party.

         (c)   Unilateral Termination by Schwarz. Schwarz will have the right
to unilaterally terminate this Agreement at any time and in its sole discretion
upon the delivery of written notice to CIMA. Any provision herein
notwithstanding, in the event that Schwarz terminates this Agreement pursuant to
this Section 11.1(c), Schwarz's sole obligation under this Agreement shall be to
reimburse CIMA for the costs and expenses actually incurred by CIMA (i) in
performing the development activities set forth on Schedule 3.1 hereto prior to
CIMA's receipt of such notice of termination and (ii) in connection with the
orderly close out of such development activities; provided, however, that
Schwarz's reimbursement obligations pursuant to this Section 11.1(c) shall
exclude the costs and expenses incurred by CIMA in connection with any
Development Phase for which Schwarz has made a Development Fee Payment and shall
in no event exceed the Development Fee Payment associated with the Development
Phase on which CIMA is then working, as set forth on Schedule 4.1(b).

         (d)   Continuing Obligations. Termination of this Agreement for any
reason shall not relieve the parties of any obligation accruing prior thereto
with respect to the Product and any ongoing obligations hereunder with respect
to the remaining Product and shall be without

                                       23
<PAGE>   29

                                                                  Exhibit 10.26

prejudice to the rights and remedies of either party with respect to any
antecedent breach of the provisions of this Agreement. Without limiting the
generality of the foregoing, no termination of this Agreement, whether by lapse
of time or otherwise, shall serve to terminate the obligations of the parties
hereto under Sections 5.8, 9.3, 9.4, 9.5, 9.7, 9.9(a), 10, 11.1(c), 11.1(d) and
12 hereof, and such obligations shall survive any such termination.

                                   SECTION 12

                                  MISCELLANEOUS

         12.1  Successors and Assigns. This Agreement shall be binding upon
and shall inure to the benefit of the parties hereto and their respective
successors and permitted assigns; provided, however, that neither CIMA nor
Schwarz may assign any of its rights, duties or obligations hereunder without
the prior written consent of the other, which consent shall not be unreasonably
withheld, except that no prior written consent shall be required in the event
that a third party acquires substantially all of the assets or outstanding
shares of, or merges with, Schwarz or CIMA, as the case may be.

         12.2  Notices. All notices or other communications required or
permitted to be given hereunder shall be in writing and shall be deemed to have
been duly given if delivered by hand or facsimile and confirmed in writing, or
mailed first class, postage prepaid, by registered or certified mail, return
receipt requested (mailed notices and notices sent by facsimile shall be deemed
to have been given on the date received) as follows:

If to CIMA, as follows:

         CIMA LABS INC.
         10000 Valley View Road
         Eden Prairie, MN  55344
         Facsimile:  952-947-8770
         Attention:  President and CEO

If to Schwarz, as follows:

         Schwarz Pharma, Inc.
         6140 West Executive Drive
         Mequon, Wisconsin  53092
         Facsimile:  262-242-1641
         Attention:  General Counsel

or in any case to such other address or addresses as hereafter shall be
furnished as provided in this Section 12.2 by any party hereto to the other
party.

         12.3  Waiver; Remedies. Any term or provision of this Agreement may
be waived at any time by the party entitled to the benefit thereof by a written
instrument executed by such party. No delay on the part of CIMA or Schwarz in
exercising any right, power or privilege hereunder shall operate as a waiver
thereof, nor shall any waiver on the part of either CIMA or Schwarz of any
right, power or privilege hereunder operate as a waiver of any other right,
power or privilege hereunder nor shall any single or partial exercise of any
right, power or privilege hereunder preclude any other or further exercise
thereof or the exercise of any other right, power

                                       24
<PAGE>   30

                                                                  Exhibit 10.26

or privilege hereunder. The indemnification provided in Section 10 shall be the
sole remedy available for any Damages arising out of or in connection with this
Agreement except for any rights or remedies which the parties hereto may
otherwise have in equity.

         12.4  Survival of Representations. Each of the representations and
warranties made in this Agreement shall continue for the term of this Agreement
and shall thereafter be extinguished.

         12.5  Independent Contractors. The parties hereto are independent
contractors and nothing contained in this Agreement shall be deemed to create
the relationship of partners, joint venturers, or of principal and agent,
franchisor and franchisee, or of any association or relationship between the
parties other than as expressly provided in this Agreement. Schwarz acknowledges
that it does not have, and Schwarz shall not make representations to any third
party, either directly or indirectly, indicating that Schwarz has any authority
to act for or on behalf of CIMA or to obligate CIMA in any way whatsoever. CIMA
acknowledges that it does not have, and it shall not make any representations to
any third party, either directly or indirectly, indicating that it has any
authority to act for or on behalf of Schwarz or to obligate Schwarz in any way
whatsoever.

         12.6  Entire Agreement. This Agreement constitutes the entire
agreement between the parties with respect to the subject matter hereof and
supersedes all prior agreements or understandings of the parties relating
thereto.

         12.7  Amendment. This Agreement may be modified or amended only by
written agreement of the parties hereto.

         12.8  Counterparts. This Agreement may be executed in any number of
counterparts, each of which shall be deemed an original but all of which
together shall constitute a single instrument.

         12.9  Governing Law. This Agreement shall be governed and construed
in accordance with the laws of the State of New York excluding any choice of law
rules which may direct the application of the law of another state.

         12.10 Arbitration. Any dispute, controversy or claim arising out of
or in connection with this Agreement shall be determined and settled by
arbitration in New York, New York, pursuant to the Rules of Arbitration then in
effect of the American Arbitration Association. Any award rendered shall be
final and conclusive upon the parties and a judgment thereon may be entered in a
court having competent jurisdiction. Any arbitration hereunder shall be (i)
submitted to an arbitration tribunal comprised of three (3) independent members
knowledgeable in the pharmaceutical industry, one of whom shall be selected by
Schwarz, one of whom shall be selected by CIMA, and one of whom shall be
selected by the other two arbitrators; (ii) allow for the parties to request
discovery pursuant to the rules then in effect under the Federal Rules of Civil
Procedure for a period not to exceed 90 days; and (iii) require the award to be
accompanied by findings of fact and a statement of reasons for the decision.
Each party shall bear its own costs and expenses, including attorney's fees
incurred in any dispute which is determined and/or settled by arbitration
pursuant to this Section. Except where clearly prevented by the area in dispute,
both parties agree to continue performing their respective obligations under
this

                                       25
<PAGE>   31

                                                                  Exhibit 10.26

Agreement while the dispute is being resolved. Arbitration shall not prevent any
party from seeking injunctive relief where such remedy is an appropriate form of
remedy under the circumstances.

         12.11 Captions. All section titles or captions contained in this
Agreement, in any Schedule referred to herein or in any Exhibit annexed hereto,
and the table of contents, if any, to this Agreement are for convenience only,
shall not be deemed a part of this Agreement and shall not affect the meaning or
interpretation of this Agreement.

         12.12 No Third-Party Rights. No provision of this Agreement shall be
deemed or construed in any way to result in the creation of any rights or
obligation in any Person not a party or not affiliated with a party to this
Agreement.

         12.13 Severability. If any provision of this Agreement is found or
declared to be invalid or unenforceable by any court or other competent
authority having jurisdiction, such finding or declaration shall not invalidate
any other provision hereof, and this Agreement shall thereafter continue in full
force and effect.

         12.14 Attachments. All Schedules, Exhibits and other attachments to
this Agreement are by this reference incorporated herein and made a part of this
Agreement.

         12.15 Force Majeure. In the event that a party is prevented from
carrying out its obligations under this Agreement by an event of Force Majeure,
then such party's performance of its obligations under this Agreement shall be
excused during the period of such event and for a subsequent reasonable period
of recovery.

                                       26
<PAGE>   32

                                                                  Exhibit 10.26

         IN WITNESS WHEREOF, the parties have caused this Agreement to be duly
executed and delivered on the day and year first above written.

                                        CIMA LABS INC.

                                        By: /s/ John Siebert Ph.D.
                                           --------------------------
                                           Name:  John Siebert Ph.D.
                                           Title: President and CEO

                                        SCHWARZ PHARMA, INC.

                                        By: /s/Ron Stratton, Ph.D.
                                           --------------------------
                                           Name:  Ron Stratton, Ph.D.
                                           Title: President and COO

<PAGE>   33

                                                                   Exhibit 10.26

                                                                    Schedule 2.4
                                                         to Development, License
                                                            and Supply Agreement

                        Minimum Annual Net Sales Targets

         Subject to Section 4.1(c), Schwarz shall endeavor to meet or exceed the
minimum Annual Net Sales targets set forth below for the Product as well as the
June Product. References to Years below are to full calendar years after the
Year in which the June Product is Launched.

<TABLE>
<CAPTION>

Year           Minimum Annual Net Sales Target
----           -------------------------------

<S>            <C>
Year 1         ###
Year 2         ###
Year 3         ###
Year 4         ###
Year 5         ###

</TABLE>

### - [***CONFIDENTIAL TREATMENT REQUESTED, PORTION OMITTED FILED SEPARATELY
WITH THE SECURITIES AND EXCHANGE COMMISSION.***]

<PAGE>   34

                                                                   Exhibit 10.26

                                                                    Schedule 3.1
                                                         to Development, License
                                                            and Supply Agreement

                              Development Schedule
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------------
DEVELOPMENT PHASES                                                                        COMPLETION DATE FOR
                                                                                           DEVELOPMENT PHASE
--------------------------------------------------------------------------------------------------------------------
<S>      <C>                                                                                   <C>
1)       FEASIBILITY PROTOTYPE DEVELOPMENT                                                        ###
           -Analytical Method Development and Method Validation
           -Develop formulation to meet ### in vitro release
           -Produce cGMP prototype batch for a bioequivalency study
           -Initiate accelerated and CRT stability studies on prototype
--------------------------------------------------------------------------------------------------------------------
2)       PROTOTYPE STABILITY                                                                      ###
           -Three months accelerated and CRT stability
--------------------------------------------------------------------------------------------------------------------
3)       SCALE-UP                                                                                 ###
           -Coating scale-up
           -Produce experimental full-scale batch
           -Produce full-scale bioequivalent demonstration batch
           -Initiate accelerated and CRT stability studies on demonstration batch
--------------------------------------------------------------------------------------------------------------------
4)       DEMONSTRATION BATCH STABILITY                                                            ###
           -Acceptable three months accelerated and CRT stability
--------------------------------------------------------------------------------------------------------------------
5)       PROCESS VALIDATION                                                                       ###
           -Coating process
           -Finished product
           -Initiate CRT stability testing on 3 validation lots
--------------------------------------------------------------------------------------------------------------------
</TABLE>

[FN]
Notes:   1)     The active ingredient [***CONFIDENTIAL TREATMENT REQUESTED,
                PORTION OMITTED FILED SEPARATELY WITH THE SECURITIES AND
                EXCHANGE COMMISSION.***] will be provided by Schwarz Pharma.

         2)     CIMA shall not begin Phase 3 development activities prior to
                7/15/01 unless first agreed by Schwarz Pharma.
         3)     For purposes of determining whether Development Phases 1 and 3
                have been Satisfactorily Completed under Schedule 4.1(b), the
                failure of a prototype or demonstration batch to be
                bioequivalent due to circumstances that are beyond the
                reasonable control of CIMA shall not be grounds for
</FN>

<PAGE>   35
[FN]
                withholding the Development Fee Payment associated with
                Development Phase 1 or 3. The Parties agree, however, that the
                formulation of a demonstration batch and the in vivo release
                of the active ingredient are within the control of CIMA.

</FN>

### - [***CONFIDENTIAL TREATMENT REQUESTED, PORTION OMITTED FILED SEPARATELY
WITH THE SECURITIES AND EXCHANGE COMMISSION.***]

<PAGE>   36

                                                                   Exhibit 10.26

                                                                 Schedule 4.1(a)
                                                         to Development, License
                                                            and Supply Agreement

                                  Royalty Rates

         In any Year, Schwarz shall pay to CIMA a royalty in the amount of
[***CONFIDENTIAL TREATMENT REQUESTED, PORTION OMITTED FILED SEPARATELY WITH THE
SECURITIES AND EXCHANGE COMMISSION.***] of the Annual Net Sales, if any,
actually recorded during such Year.

         Schwarz shall pay the royalty payment due in respect of any Quarter (a
"Quarterly Installment") by remitting a check, together with the report required
by Section 4.3, to CIMA within 60 days after the end of each Quarter during such
Year. For purposes of determining the royalty payment pursuant to this Schedule
4.1(a) the amount of each Quarterly Installment shall be calculated based on
actual Net Sales recorded during such Quarter.

<PAGE>   37

                                                                   Exhibit 10.26

                                                                 Schedule 4.1(b)
                                                         to Development, License
                                                            and Supply Agreement

                     Development Fee and Milestone Payments

         (a)   Subject to paragraph (b) of this Schedule 4.1(b), Schwarz
shall pay to CIMA any of the development fee payments set forth below (each a
"Development Fee Payment") and any of the milestone payments set forth below
(each a "Milestone Payment") promptly after CIMA demonstrates the Satisfactory
Completion (as defined below) of the research and development phases (each a
"Development Phase") set forth opposite such Development Fee Payment and/or
Milestone Payment, as applicable:

<TABLE>
<CAPTION>

--------------------------------------------------------------------------------------------------------------------
Development Phase                                                             Development         Milestone
                                                                              Fee Payment         Payment
--------------------------------------------------------------------------------------------------------------------
<S>                                                                          <C>                    <C>
Earned on signing and payable within 90 days of the date hereof               ###
--------------------------------------------------------------------------------------------------------------------
Satisfactory Completion of Development Phase 1                                ###
--------------------------------------------------------------------------------------------------------------------
Satisfactory Completion of Development Phases 1 and 2; provided, however,     ###                 ###
that the payment of the ### Milestone Payment is contingent upon the
demonstration of the bioequivalence of the prototype batch as well as
acceptable 3 month accelerated and CRT stability of such prototype batch
--------------------------------------------------------------------------------------------------------------------
Satisfactory Completion of Development Phase 3                                ###
--------------------------------------------------------------------------------------------------------------------
Satisfactory Completion of Development Phase 4                                ###
--------------------------------------------------------------------------------------------------------------------
Satisfactory Completion of Development Phase 5                                ###                 ###
(product acceptable for launch)
--------------------------------------------------------------------------------------------------------------------

</TABLE>

         (b)   Promptly after the completion of each Development Phase, CIMA
shall notify Schwarz of such completion and shall provide Schwarz sufficient
written materials (a "Development Phase Notice") to allow Schwarz to evaluate
whether or not such Development Phase has been Satisfactorily Completed. Unless
CIMA Satisfactorily Completes a Development Phase within 60 days after the
deadline therefor, as stated in Schedule 3.1, the underlying Development Phase
shall have been deemed not to be Satisfactorily Completed for purposes of
paragraph (a) above and Schwarz's obligation to make the related Development Fee
Payment and/or Milestone Payment, as applicable, shall terminate and be deemed
waived by CIMA. As to any Development Phase, "Satisfactory Completion" shall
mean the completion of such Development Phase in a manner which is (i)
appropriate to support the commercialization of the Product and (ii) consistent
with this Agreement.

<PAGE>   38

                                                                   Exhibit 10.26

                                                                 Schedule 4.1(b)
                                                         to Development, License
                                                            and Supply Agreement

### - [***CONFIDENTIAL TREATMENT REQUESTED, PORTION OMITTED FILED SEPARATELY
WITH THE SECURITIES AND EXCHANGE COMMISSION.***]

<PAGE>   39

                                                                   Exhibit 10.26

                                                                 Schedule 5.1(b)
                                                         to Development, License
                                                            and Supply Agreement

                             Schwarz Purchase Order

                                 [See Attached]

<PAGE>   40

                                                                   Exhibit 10.26

                                                                    Schedule 5.3
                                                         to Development, License
                                                            and Supply Agreement

                                  Cost of Goods

         Schwarz shall pay to CIMA the amounts indicated on the following
schedule in respect of CIMA's manufacturing obligations hereunder. Such payment
shall be made in accordance with Section 5.6.

         SAMPLES (20MM max per year)
<TABLE>
<CAPTION>

         -------------------------------------------------------------------
         Configuration                                        Price
         -------------------------------------------------------------------
<S>                                                           <C>
         costs per tablet (blisters of two)                    ###
         -------------------------------------------------------------------
         cost per tablet (cartons containing 20                 ###
         blister strips of 2 tablets)
         -------------------------------------------------------------------
</TABLE>

         PLACEBOS
<TABLE>
<CAPTION>

         -------------------------------------------------------------------
         Configuration                                        Price
         -------------------------------------------------------------------
<S>                                                           <C>
         Bulked, cost per tablet                               ###
         -------------------------------------------------------------------
</TABLE>

         TRADE
<TABLE>
<CAPTION>

         -------------------------------------------------------------------
         Configuration                                        Price
         -------------------------------------------------------------------
<S>                                                           <C>
         Bulked, cost per tablet                               ###
         -------------------------------------------------------------------
         5 cards of 6 cartoned, cost per                       ###
         tablet
         -------------------------------------------------------------------
</TABLE>

         * To be ### per tablet (plus, in the case of cartons containing 20
           blister strips of 2 tablets, applicable packaging costs) for the
           initial 6,000,000 tablets

### - [***CONFIDENTIAL TREATMENT REQUESTED, PORTION OMITTED FILED SEPARATELY
WITH THE SECURITIES AND EXCHANGE COMMISSION.***]

<PAGE>   41

                                                                   Exhibit 10.26

                                                                    Schedule 5.3
                                                         to Development, License
                                                            and Supply Agreement

<PAGE>   42
                                                                   Exhibit 10.26

                                                                 Schedule 5.4(d)
                                                         to Development, License
                                                            and Supply Agreement

                           Quality Assurance Addendum

                      [To be mutually agreed by parties on
                          or prior to October 31, 2001]

<PAGE>   43

                                                                   Exhibit 10.26

                                                    Schedules 9.9(a)(i) and (ii)
                                                         to Development, License
                                                            and Supply Agreement

                           COMPETITIVE PRODUCTS UNDER
                                SECTION 9.9(a)(i)

           [***CONFIDENTIAL TREATMENT REQUESTED, PORTION OMITTED FILED
          SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.***].

                           COMPETITIVE PRODUCTS UNDER
                               SECTION 9.9(a)(ii)

           [***CONFIDENTIAL TREATMENT REQUESTED, PORTION OMITTED FILED
          SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.***]<PAGE>   1
                                                                     EXHIBIT 4.1

                          AMENDMENT OF RIGHTS AGREEMENT

         AMENDMENT (this "Amendment"), dated as of November 6, 2000, to the
Rights Agreement (the "Rights Agreement"), dated as of August 6, 1998, by and
between Universal Foods Corporation d/b/a Sensient Technologies Corporation
(formerly Universal Foods Corporation), a Wisconsin corporation (the "Company"),
and Wells Fargo Bank Minnesota, N.A. (as successor to Firstar Trust Company), as
Rights Agent (the "Rights Agent").

                                    RECITALS

         A.       The Company and Firstar Trust Company have heretofore executed
and entered into the Rights Agreement.

         B.       Pursuant to Section 21 of the Rights Agreement, the Company
has removed Firstar Trust Company as Rights Agent and appointed Wells Fargo Bank
Minnesota, N.A. as successor Rights Agent, in each case effective as of October
16, 2000.

         C.       On September 7, 2000 the name of the Company was changed from
Universal Foods Corporation to Sensient Technologies Corporation, subject to
approval by the shareholders of the Company at its next Annual Meeting on April
26, 2001, and commencing on November 6, 2000 (the "Launch Date") until the
Annual Meeting the Company will utilize the name "Sensient Technologies
Corporation" as a fictitious name and, when legally necessary or appropriate,
the Company will refer to itself as "Universal Foods Corporation d/b/a Sensient
Technologies Corporation."

         D.       Pursuant to Section 27 of the Rights Agreement, the Company
may from time to time supplement or amend the Rights Agreement in accordance
with the provisions of Section 27 thereof.

         E.       All acts and things necessary to make to this Amendment a
valid agreement, enforceable according to its terms, have been done and
performed, and the execution and delivery of this Amendment by the Company and
the Rights Agent have been in all respects duly authorized by the Company and
the Rights Agent.

                                    AGREEMENT

         NOW THEREFORE, in consideration of the foregoing and the mutual
agreements set forth herein, the parties hereby agree as follows:

         1.       The Rights Agreement is hereby modified and amended by
deleting all references to "Firstar Trust Company" and substituting therefor
"Wells Fargo Bank Minnesota, N.A." as the successor Rights Agent.

         2.       The Rights Agreement is hereby modified and amended by
deleting the business address of Firstar Trust Company in Section 26 thereof and
substituting therefor the business address of Wells Fargo Bank Minnesota, N.A.

<PAGE>   2

         3.       Effective from and after the Launch Date, the Rights Agreement
is hereby modified and amended by deleting all references to "Universal Foods
Corporation" and substituting therefor "Universal Foods Corporation d/b/a
Sensient Technologies Corporation." Upon approval of the new name by the
Company's shareholders, the Rights Agreement shall be deemed amended so that the
use of the fictitious name shall cease and the Company shall be referred to as
"Sensient Technologies Corporation." Such amendment shall be self-effecting upon
shareholder approval without further action by the Company.

         4.       If the name "Sensient Technologies Corporation" is not
approved by the shareholders, the use of the fictitious name shall cease and the
Company shall once again be referred to as "Universal Foods Corporation" without
further action by the Company.

         5.       This Amendment shall be deemed to be a contract made under the
laws of the State of Delaware and for all purposes shall be governed by and
construed in accordance with the laws of such State applicable to contacts to be
made and performed entirely within such State, without giving to its principles
of conflicts of laws.

         6.       This Amendment may be executed in any number of counterparts,
each of which shall be an original, but such counterparts shall together
constitute one and the same instrument.

         7.       Terms not defined herein shall, unless the context otherwise
requires, have the meanings assigned to such terms in the Rights Agreement.

         8.       In all respects not inconsistent with the terms and provisions
of this Amendment, the Rights Agreement is hereby ratified, adopted, approved
and confirmed. In executing and delivering this Amendment, the Rights Agent
shall be entitled to all the privileges and immunities afforded to the Rights
Agent under the terms and conditions of the Rights Agreement.

         IN WITNESS WHEREOF, this Amendment has been duly executed by the
Company and the Rights Agent as of the day and year first written above.

<TABLE>
<S><C>

Attest:                                             UNIVERSAL FOODS CORPORATION
------                                              D/B/A SENSIENT TECHNOLOGIES
                                                    CORPORATION

By:     /s/ Christopher Lawlor                      By:    /s/ John L. Hammond
-------------------------------------                   ----------------------------------------
Name:   Christopher Lawlor                          Name:  John L. Hammond
Title:  Assistant General Counsel                   Title: Vice President, Secretary & General
                                                             Counsel

Attest:                                             WELL FARGO BANK MINNESOTA,
------                                              N.A.

By:     /s/ Karri Van Dell                          By:    /s/ John Baker
-------------------------------------                   ----------------------------------------
Name:   Kari Van Dell                               Name:  John Baker
Title:  Assistant Vice President                    Title:  Assistant Vice President

</TABLE>

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00017-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00017-of-00352.parquet"}]]