Document:

EXHIBIT 10.1

                           FORM OF PURCHASE AGREEMENT

      This purchase  agreement (this "Agreement") is dated as of August 5, 2005,
by  and  between  the   purchasers  set  forth  on  the  signature  page  hereto
(collectively,  the "Purchaser")  and SpatiaLight,  Inc., a New York Corporation
(the "Company"), whereby the parties agree as follows:

1.    Offering.

      a)    The Company has  authorized the sale and issuance of up 2,000,000 of
            its Common Shares (the  "Shares"),  to one or more  purchasers  (the
            "Offering").  The Offering has been  registered  with the Securities
            and Exchange Commission ("SEC") under the Securities Act of 1933, as
            amended  (the   "Securities   Act"),   pursuant  to  the   Company's
            Registration  Statement  on Form S-3  (No.  333-122392),  which  was
            declared  effective  by the SEC on July 29,  2005  and has  remained
            effective  since such date and is  effective on the date hereof (the
            "Registration Statement").

      b)    The Company and the Purchaser agree that, at the Closing (as defined
            in Section 2), the Purchaser  will purchase from the Company and the
            Company  will issue and sell to the  Purchaser  the number of Shares
            set forth on the  signature  page of this  Agreement  for a purchase
            price  set  forth  on the  signature  page  of this  Agreement  (the
            "Purchase  Price")  pursuant to the terms and  conditions  set forth
            herein.  Certificates  representing  the  Shares  purchased  by  the
            Purchaser  may  not be  delivered  to the  Purchaser;  instead  such
            Shares,  if  not  physically  delivered,  will  be  credited  to the
            Purchaser using customary book-entry procedures.

      c)    The Company may enter into agreements with certain other  purchasers
            (the "Other Purchasers"),  with terms and conditions,  including but
            not limited to purchase  price and quantity of Shares,  which may be
            different from those set forth herein.  (The Purchaser and the Other
            Purchasers are hereinafter sometimes collectively referred to as the
            "Purchasers"  and this Agreement and the stock  purchase  agreements
            executed  by  the  Other   Purchasers  are   hereinafter   sometimes
            collectively referred to as the "Purchase Agreements").  The Company
            may accept or reject Purchase Agreements in its sole discretion.

      d)    Pursuant to Rule 424(b)(2) of the Securities Act, the Company agrees
            to file  with  SEC a  prospectus  supplement  in a form  similar  to
            Exhibit A hereto  regarding the sale of the Shares to Purchaser (the
            "Prospectus  Supplement")  after  consummation  of the  sale  of the
            Shares contemplated by this Agreement.

      e)    From the date hereof until 30 days  following  the date hereof,  the
            Purchaser  may,  in  its  sole  determination,  elect  to  purchase,
            severally  and not  jointly  with  the  other  Purchasers,  up to an
            additional  aggregate total of 225,000  registered  shares of Common
            Stock  off  the  Registration   Statement  (such   securities,   the
            "Greenshoe  Securities"  and such  right,  a  "Greenshoe  Right") in
            proportion  to the  Shares  initially  purchased  by the  Purchasers
            pursuant to this  Agreement.  Any  Greenshoe  Right  exercised  by a
            Purchaser  shall close  within 2 business  days of a duly  delivered
            exercise notice by the exercising  party. Any additional  investment
            in the Greenshoe  Securities  shall be at a purchase  price of $5.50
            per Share and on other terms and conditions  materially identical to
            the purchase and sale of the Shares set forth on the

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            signature page hereto,  mutatis  mutandis.  In order to effectuate a
            purchase and sale of the Greenshoe  Securities,  the Company and the
            Purchasers  shall  enter  into  a  purchase   agreement   materially
            identical to this Agreement; provided, however, that there shall not
            be any additional Greenshoe Rights.

2.    Delivery of the Shares at Closing

      a)    The  completion  of  the  purchase  and  sale  of  the  Shares  (the
            "Closing")  shall occur on August 5, 2005 (the "Closing  Date").  At
            the  Closing,  the  Purchaser  shall  deliver to the  Company a wire
            transfer of funds in the full amount of the  purchase  price for the
            Shares being purchased  hereunder as set forth on the signature page
            hereto, and the Company shall deliver to the Purchaser,  at the sole
            discretion  of  the   Purchaser,   physically  or  using   customary
            book-entry  procedures  (such  as  the  Depository  Trust  Company's
            Deposit Withdrawal Agent Commission  system),  the number of Shares,
            set forth on the signature page hereto.

      b)    The  Company's  obligation  to  issue  and sell  the  Shares  to the
            Purchaser   shall  be   conditioned   upon  the   accuracy   of  the
            representations  and  warranties  made  by  the  Purchaser  and  the
            fulfillment of those  undertakings  of the Purchaser to be fulfilled
            prior to the Closing.

3.    Company Representations and Warranties

      a) The  Company  hereby  represents  and  warrants  that:  (a) it has full
rights,  power and authority to enter into this  Agreement and to perform all of
its  obligations  hereunder;  (b) this  Agreement has been duly  authorized  and
executed  by and  constitutes  a valid  and  binding  agreement  of the  Company
enforceable  in  accordance  with its  terms,  except as  enforceability  may be
limited by  applicable  bankruptcy,  insolvency,  reorganization,  moratorium or
similar laws affecting  creditors' and contracting parties' rights generally and
except  as  enforceability  may be  subject  to  general  principles  of  equity
(regardless  of whether such  enforceability  is  considered  in a proceeding in
equity or at law);  (c) the  execution  and delivery of this  Agreement  and the
consummation  of the  transactions  contemplated  hereby do not conflict with or
result  in  a  material  breach  of  (i)  the  Company's  Amended  and  Restated
Certificate of  Incorporation or by-laws,  as amended,  or (ii) any agreement to
which the Company is a party or by which any of its property or assets is bound;
and (d) upon receipt of the Purchase Price,  the Shares will be duly and validly
issued, fully paid and non-assessable, and the Purchaser will be entitled to all
rights accorded to a holder of the Company's Common Shares.

      b) The Registration  Statement has been declared  effective by the SEC and
to the best of the  Company's  knowledge is currently  effective for the sale of
the Shares to the Purchaser.

      c) The Company represents that it shall promptly secure listing of all the
Shares sold under this Agreement upon the Nasdaq SmallCap Market.

4.    Purchaser Representations and Warranties

      a)    The  Purchaser  represents  and  warrants  that  (a) it  has  had no
            position,  office or other  material  relationship  within  the past
            three years with the Company or person known to it to be  affiliates
            of the Company,  and (b) it is not a registered  broker-dealer under
            Section 15 of the Securities Exchange Act of 1934, as amended, as of
            the date hereof.

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<PAGE>

      b)    The  Purchaser  hereby  confirms  receipt  of  the  base  prospectus
            included in the Registration Statement and the Prospectus Supplement
            (together,  the  "Prospectus").  The Purchaser  confirms that it had
            full access to the  Prospectus  and was fully able to read,  review,
            download and print it.

      c)    The  Purchaser  further  represents  and warrants to, and  covenants
            with,  the Company  that (i) the  Purchaser  has full right,  power,
            authority  and  capacity  to  enter  into  this   Agreement  and  to
            consummate the  transactions  contemplated  hereby and has taken all
            necessary   action  to  authorize   the   execution,   delivery  and
            performance  of this  Agreement,  and (ii) this  Purchase  Agreement
            constitutes  a  valid  and  binding   obligation  of  the  Purchaser
            enforceable  against the  Purchaser  in  accordance  with its terms,
            except as  enforceability  may be limited by applicable  bankruptcy,
            insolvency,  reorganization,  moratorium  or similar laws  affecting
            creditors' and contracting  parties' rights  generally and except as
            enforceability  may be  subject  to  general  principles  of  equity
            (regardless  of  whether  such  enforceability  is  considered  in a
            proceeding in equity or at law).

      d)    The  Purchaser  understands  that  nothing in the  Prospectus,  this
            Agreement  or any other  materials  presented  to the  Purchaser  in
            connection  with the  purchase  and sale of the  Shares  constitutes
            legal,  tax or investment  advice.  The Purchaser has consulted such
            legal,  tax and investment  advisors as it, in its sole  discretion,
            has deemed  necessary or appropriate in connection with its purchase
            of Shares.

5.    Notice

      All  communications  hereunder,  except as may be  otherwise  specifically
provided herein,  shall be in writing and shall be mailed, hand delivered,  sent
by a recognized  overnight courier service such as Federal Express,  or sent via
facsimile and  confirmed by letter,  to the party to whom it is addressed at the
following  addresses or such other address as such party may advise the other in
writing:

      To the Company: as set forth on the signature page hereto.

      To the Purchaser: as set forth on the signature page hereto.

      All notices  hereunder  shall be  effective  upon  receipt by the party to
which it is addressed.

6.    Jurisdiction

      This Agreement  shall be governed by ad interpreted in accordance with the
laws of the State of New York, as if fully performed in New York, without giving
effect to the  principles  of  conflicts  of law  thereof.  Each of the  parties
consents to the exclusive  jurisdiction  of the United States  district court of
the  Southern  District of New York in the state courts of the State of New York
sitting in the City of New York in  connection  with any dispute  arising  under
this Agreement,  and hereby waives,  to the maximum extent permitted by law, any
objection based on forum non conveniens. To the extent determined by such court,
the prevailing  party shall reimburse the other party for any reasonable  costs,
legal fees and disbursements incurred in enforcement or protection of any of its
rights under this Agreement.

7.    Indemnification.

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<PAGE>

      (a) The Company shall,  notwithstanding any termination of this Agreement,
indemnify and hold harmless the  Purchaser,  the  officers,  directors,  agents,
brokers (including brokers who offer and sell Shares as principal as a result of
a pledge or any  failure  to  perform  under a margin  call of  Common  Shares),
investment  advisors and  employees  of each of them,  each person or entity who
controls the Purchaser  (within the meaning of Section 15 of the  Securities Act
or Section  20 of the  Exchange  Act) and the  officers,  directors,  agents and
employees  of each such  controlling  person or entity,  to the  fullest  extent
permitted  by  applicable  law,  from and against  any and all  losses,  claims,
damages,   liabilities,   costs  (including,   without  limitation,   reasonable
attorneys' fees) and expenses (collectively, "Losses"), as incurred, arising out
of or relating to any untrue or alleged  untrue  ------  statement of a material
fact contained in the Registration Statement, any prospectus therein or any form
of prospectus or in any  amendment or supplement  thereto or in any  preliminary
prospectus, or arising out of or relating to any omission or alleged omission of
a  material  fact  required  to be  stated  therein  or  necessary  to make  the
statements  therein  (in the case of any  prospectus  or form of  prospectus  or
supplement  thereto,  in light of the circumstances  under which they were made)
not  misleading.   The  Company  shall  notify  the  Holders   promptly  of  the
institution, threat or assertion of any Proceeding arising from or in connection
with the  transactions  contemplated  by this  Agreement of which the Company is
aware.

      (b) If any proceeding  shall be brought or asserted  against any person or
entity  entitled  to  indemnity   hereunder  (an  "Indemnified   Party"),   such
Indemnified Party shall promptly notify the Company in writing,  and the Company
shall  -------------------  have  the  right  to  assume  the  defense  thereof,
including the employment of counsel  reasonably  satisfactory to the Indemnified
Party and the  payment of all fees and  expenses  incurred  in  connection  with
defense  thereof;  provided,  that the failure of any Indemnified  Party to give
such notice  shall not relieve the  Company of its  obligations  or  liabilities
pursuant  to this  Agreement,  except  (and only) to the extent that it shall be
finally determined by a court of competent  jurisdiction (which determination is
not subject to appeal or further review) that such failure shall have prejudiced
the  Company.  An  Indemnified  Party  shall  have the right to employ  separate
counsel in any such  proceeding and to participate in the defense  thereof,  but
the  fees  and  expenses  of  such  counsel  shall  be at the  expense  of  such
Indemnified  Party or parties  unless:  (1) the Company has agreed in writing to
pay such fees and expenses; (2) the Company shall have failed promptly to assume
the defense of such Proceeding and to employ counsel reasonably  satisfactory to
such Indemnified  Party in any such proceeding;  or (3) the named parties to any
such proceeding  (including any impleaded parties) include both such Indemnified
Party and the Company,  and such Indemnified Party shall reasonably believe that
a material  conflict of interest is likely to exist if the same  counsel were to
represent  such  Indemnified  Party  and the  Company  (in which  case,  if such
Indemnified  Party  notifies  the  Company in  writing  that it elects to employ
separate  counsel at the expense of the Company,  the Company shall not have the
right to assume the defense  thereof and the reasonable fees and expenses of one
separate counsel shall be at the expense of the Company).  The Company shall not
be liable for any settlement of any such proceeding effected without its written
consent,  which consent shall not be  unreasonably  withheld.  The Company shall
not,  without the prior written  consent of the  Indemnified  Party,  effect any
settlement of any pending  proceeding in respect of which any Indemnified  Party
is a party,  unless such settlement  includes an  unconditional  release of such
Indemnified  Party from all  liability on claims that are the subject  matter of
such proceeding.

      Subject to the terms of this  Agreement,  all reasonable fees and expenses
of the Indemnified  Party (including  reasonable fees and expenses to the extent
incurred in connection

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<PAGE>

with  investigating  or  preparing  to defend  such  proceeding  in a manner not
inconsistent  with this  Section)  shall be paid to the  Indemnified  Party,  as
incurred,  within ten business  days of written  notice  thereof to the Company;
provided,  that the Indemnified  Party shall promptly  reimburse the Company for
that portion of such fees and expenses applicable to such actions for which such
Indemnified Party is not entitled to indemnification hereunder, determined based
upon the relative faults of the parties.

      (c) If  the  indemnification  under  Section  7(a)  is  unavailable  to an
Indemnified  Party or insufficient to hold an Indemnified Party harmless for any
Losses,  then the Company shall contribute to the amount paid or payable by such
Indemnified  Party, in such proportion as is appropriate to reflect the relative
fault of the Company  and  Indemnified  Party in  connection  with the  actions,
statements  or  omissions  that  resulted  in such  Losses  as well as any other
relevant  equitable  considerations.  The amount paid or payable by a party as a
result of any Losses shall be deemed to include,  subject to the limitations set
forth in this Agreement,  any reasonable  attorneys' or other reasonable fees or
expenses  incurred by such party in connection with any proceeding to the extent
such  party  would  have  been  indemnified  for such  fees or  expenses  if the
indemnification  provided  for in this  Section was  available  to such party in
accordance with its terms.

      (d) The indemnity and contribution  agreements contained in this Section 7
are in addition to any  liability  that the Company may have to the  Indemnified
Parties.

8.    Miscellaneous

      a)    This Agreement  (and the  Prospectus and any prospectus  supplement)
            constitutes  the entire  understanding  and  agreement  between  the
            parties  with  respect  to  its  subject  matter  and  there  are no
            agreements  or  understandings  with  respect to the subject  matter
            hereof which are not contained in this Agreement.

      b)    This Agreement may be executed in any number of counterparts, all of
            which taken  together shall  constitute one and the same  instrument
            and shall become  effective  when  counterparts  have been signed by
            each  party and  delivered  to the other  parties  hereto,  it being
            understood  that all  parties  need  not sign the same  counterpart.
            Execution may be made by delivery by facsimile.

      c)    This Agreement may not be modified or amended except  pursuant to an
            instrument in writing signed by the Company and the Purchaser.

      d)    The  headings of the various  sections of this  Agreement  have been
            inserted for  convenience  or reference only and shall not be deemed
            to be part of this Agreement.

      e)    In case any provision contained in this Agreement should be invalid,
            illegal or unenforceable in any respect, the validity,  legality and
            enforceability  of the remaining  provisions  contained herein shall
            not in any way be affected or impaired thereby.

                              *********************

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<PAGE>

      If the foregoing  correctly sets forth our agreement,  please confirm this
by signing and returning to us the duplicate copy of this letter.

                                         AGREED AND ACCEPTED:

                                         SPATIALIGHT, INC.

                                         By:
                                            -----------------------------------
                                            Name:
                                            Title:

                                         Address for Notice:
                                         ------------------
                                         5 Hamilton Landing, Suite 100
                                         Novato, CA 94949

                                         Wire Instructions: See EXHIBIT B

                                         AGREED AND ACCEPTED:

                                         PURCHASERS:

                                         [_________________________]

                                         By:
                                            -----------------------------------
                                            Name:
                                            Title:

                                         Address for Notice:
                                         ------------------

                                         --------------------------------------

                                         --------------------------------------

                                         Number of Shares:
                                                          ---------------------
                                         Purchase Price per Share: $5.40
                                                                    ----
                                         Aggregate Purchase Price: $
                                                                    -----------
                                         Tax ID No:
                                                   ----------------------------
                                         Name in which book-entry should be made
                                   (if different):
                                                  -----------------------------

                                       50
<PAGE>

                                         [_________________________]

                                         By:
                                            -----------------------------------
                                            Name:
                                            Title:

                                         Address for Notice:
                                         ------------------

                                         --------------------------------------

                                         --------------------------------------

                                         Number of Shares:
                                                          ---------------------
                                         Purchase Price per Share: $5.40
                                                                    ----
                                         Aggregate Purchase Price: $
                                                                    -----------
                                         Tax ID No:
                                                   ----------------------------
                                         Name in which book-entry should be made
                                   (if different):
                                                  -----------------------------

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<PAGE>

                                         [_________________________]

                                         By:
                                            -----------------------------------
                                            Name:
                                            Title:

                                         Address for Notice:
                                         ------------------

                                         --------------------------------------

                                         --------------------------------------

                                         Number of Shares:
                                                          ---------------------
                                         Purchase Price per Share: $5.40
                                                                    ----
                                         Aggregate Purchase Price: $
                                                                    -----------
                                         Tax ID No:
                                                   ----------------------------
                                         Name in which book-entry should be made
                                   (if different):
                                                  -----------------------------

                                       52
<PAGE>

                                                                       EXHIBIT A

Filed Pursuant to Rule 424(b)(2)                     Registration No. 333-122392

                              PROSPECTUS SUPPLEMENT
                             (TO PROSPECTUS DATED )

                                SPATIALIGHT, INC.

                          _______________ Common Shares

      You should read this prospectus supplement and the accompanying Prospectus
carefully  before you invest.  Both  documents  contain  information  you should
consider when making your investment decision.

      AN INVESTMENT IN OUR SECURITIES  INVOLVES  SUBSTANTIAL  RISKS. THESE RISKS
ARE DESCRIBED  UNDER THE CAPTION "RISK  FACTORS"  BEGINNING ON PAGE [___] OF THE
PROSPECTUS ACCOMPANYING THIS PROSPECTUS SUPPLEMENT.

      We  are  offering  [____________]  of our  Common  Shares  to one or  more
institutional  investors  pursuant to this prospectus  supplement.  The purchase
price for these  Common  Shares is  $[______]  in the  aggregate,  or $[___] per
Share.

      Our  Common  Shares are quoted on the  Nasdaq  SmallCap  Market  under the
symbol "HDTV". On  [______________]  the last reported sales price of our Common
Shares was $[___] per Share.

      NEITHER THE  SECURITIES AND EXCHANGE  COMMISSION NOR ANY OTHER  REGULATORY
BODY HAS APPROVED OR DISAPPROVED OF THESE SECURITIES OR PASSED UPON THE ACCURACY
OR  ADEQUACY  OF THIS  PROSPECTUS  SUPPLEMENT  OR THE  RELATED  PROSPECTUS.  ANY
REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.

          The date of this prospectus supplement is [_________________]Exhibit
        10.58

       

      EMPLOYMENT
        AGREEMENT dated as of June 23, 2005, between J. Robert Horton (the "Executive")
        and DOV Pharmaceutical, Inc., a Delaware corporation (the "Company").

      

      WHEREAS,
        the Company and the Executive desire to enter into this Employment Agreement
        to
        assure the Company of the continued services of the Executive and to set
        forth
        the duties and compensation of the Executive, all upon the terms and conditions
        hereinafter set forth;

      

      NOW,
        THEREFORE, in consideration of the agreements and covenants contained herein,
        the Executive and the Company hereby agree as follows:

      

      ARTICLE
        I

      

      Employment

      

      Section
        1.01. Term.
        The
        initial term of this Employment Agreement shall commence on expiration of
        the
        Executive’s previous employment contract (July 29, 2002), and, unless sooner
        terminated pursuant to Article III hereof, shall terminate on the date that
        is
        two years thereafter (the “Employment Period”). Unless sooner terminated
        pursuant to Article III, the parties may by written agreement renew this
        Agreement for one year (each such one-year period hereinafter referred to
        as a
“Renewal Period”; the Initial Employment Period and all Renewal Periods
        hereinafter referred to as the “Employment Period”).

      

      Section
        1.02. Position.
        The
        Company shall employ the Executive and the Executive shall serve as Senior
        Vice
        President and General Counsel during the Employment Period.

      

      Section
        1.03. Duties.
        (a)
        Subject
        to the responsibility vested in the Board of Directors of the Company (the
        “Board”) under the General Corporation Law of the State of Delaware, the
        Executive shall have such responsibility and authority as are customarily
        possessed and exercisable by the Senior Vice President and General Counsel
        of a
        corporation. The Executive shall also perform such other executive and
        administrative duties (not inconsistent with the position of Senior Vice
        President and General Counsel) as the Executive may reasonably be expected
        to be
        capable of performing on behalf of the Company and any subsidiaries and
        affiliates of the Company as may from time to time be authorized or directed
        by
        the Board.

      

      (b)
        During
        the Employment Period, the Executive shall perform faithfully the duties
        covered
        by Section 1.02(a) to the best of his ability and devote his full business
        time
        and attention to the Company's business and not engage in any other business
        activities except with the approval of the Board provided that he may subject
        to
        Section 4.01 invest in companies not requiring his services and may subject
        to
        Section 1.03(a) devote reasonable time to charitable and civic
        affairs.

      

      (c)
        The
        Company shall provide and pay for a standard directors and officers insurance
        policy insuring the Executive against liability arising out of the performance
        of his duties, and shall indemnify and hold the Executive harmless from
        liability arising out of his services hereunder.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      ARTICLE
        II

      

      Compensation

      

      Section
        2.01. Basic
        Compensation.
        As
        compensation for the Executive's services hereunder, the Company shall pay
        to
        the Executive an annual salary of $330,000 (as adjusted, "Basic Compensation"),
        payable in bi-weekly or monthly installments. The Basic Compensation may
        be
        increased in the discretion of the Board. 

      

      Section
        2.02. Incentive
        Compensation.
        (a) In
        addition to Basic Compensation, the Executive shall together with other
        executive staff be considered at least annually for incentive compensation
        (“Incentive Compensation”) upon recommendation by the Compensation Committee.
        Its recommendation shall, among other factors considered relevant, take into
        account performance of the Company, increase in value of the Company and
        the
        Executive’s contribution thereto. Incentive Compensation shall be determined in
        the discretion of the Board upon such recommendation. 

      

      (b)
         Incentive
        Compensation shall be paid to the Executive within 30 days after the Board’s
        determination provided that the Company may determine to pay out Incentive
        Compensation over a period not to exceed six months.

      

      Section
        2.03. Other
        Benefits.
        (a)
        During
        the Employment Period, the Company shall provide the Executive and maintain
        on
        the Executive’s behalf, or reimburse the Executive for carrying comprehensive
        medical insurance, disability insurance and life insurance of $300,000 on
        the
        life of the Executive. In addition, the Executive shall have the right to
        participate in the Company's other programs for the benefit of employees
        in
        accordance with their terms and as the same may be amended from time to time.
        

      

      (b)  The
        Executive shall be eligible to participate further in the Company’s stock option
        program. The terms of existing options held by the Executive shall be governed
        by the existing stock option agreement with the Company, and the terms of
        any
        additional options (including the 100,000 options referred to below) shall
        be
        governed by the Company’s standard stock option agreement in use at the time of
        grant, which for all options held by or issued to the Executive may incorporate
        the terms established by the Company’s stock option plan if any adopted
        subsequent to the date of grant provided that notwithstanding such stock
        option
        terms if any to be adopted to the contrary the Executive’s options to the extent
        not vested shall vest upon a termination of
        employment or pursuant to Section 3.01(d), or Section 3.03 or Section 3.04
        but
        be exercisable during the post-employment period established by such terms
        to be
        adopted. The Executive is granted options to purchase 100,000 shares of the
        Company’s common stock at a strike price determined by the closing price on July
        29, 2005, vesting half in 18 months of full time employment and the balance
        vesting ratably quarterly over the remaining 18 months of full time employment.
        The other terms of such options shall be governed by the Company’s standard
        stock option agreement to be entered into, which will incorporate the terms
        established by the Company’s stock option plan as the same may be amended from
        time to time provided that, notwithstanding such stock option terms if any
        to
        the contrary, the Executive’s options to the extent not vested shall accelerate
        and vest fully upon a termination of employment pursuant to Section 3.01(d)
        and
        accelerate and vest ratably upon a termination pursuant to Section 3.04,
        but be
        exercisable during the post-employment period established by such terms to
        be
        adopted, such ratable accelerated vesting of such 100,000 options to extend
        to
        25,000 options for a termination pursuant to Section 3.04 during the first
        year
        after the date hereof, to 62,500 options to the extent not vested for such
        a
        termination during the second year and to 100,000 options to the extent not
        vested for such a termination during the third year.

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

         

      

      (c)
         The
        Company shall pay to or on behalf of the Executive a monthly automobile
        allowance of $1,000.

      

      (d)
         The
        Executive shall be entitled to six weeks of paid vacation in each calendar
        year.
        The Executive shall also be entitled to the same standard paid holidays given
        by
        the Company to senior executives generally, all as determined from time to
        time
        by the Board or appropriate committee thereof. Vacation time shall cumulate
        and
        carry forward from year to year provided that the Executive shall not be
        entitled to more than ten weeks of vacation in any one year without the
        permission of the Compensation Committee and provided that the Executive
        shall
        coordinate his vacation schedule with the Chief Executive Officer.

      

      (e) The
        Company shall reimburse the Executive for travel or other expenses or
        disbursements reasonably incurred or made by him in connection with the
        Company's business during the Employment Period upon receipt of reasonable
        documentation thereof.

      

      (f) The
        benefits set forth in this Section 2.03 shall be collectively referred to
        as the
“Benefits.”

       

      ARTICLE
        III

      

      Termination
        of Employment

      

      Section
        3.01. Termination
        of Employment by Company

      

      (a)
        Except as otherwise provided in this Article III and in Article IV, upon
        the
        occurrence of any of the following events, this Agreement and the rights
        and
        obligations of the parties hereunder shall terminate:

      

      (i)
         "Disability"
        (as defined in Section 3.05(a)) of the Executive; or

      

      
        	 	
                (ii)
                  

              	
                conduct
                  by the Executive constituting "Cause" (as defined in Section 3.05(b));
                  or

              

      

      

      (b)
         In
        the
        case of termination pursuant to Section 3.01(a)(i), the Company shall be
        obligated to pay the Executive and the Executive shall be entitled to receive,
        in complete and total satisfaction of the obligations of the Company hereunder,
        an amount equal to Basic Compensation, Incentive Compensation and Benefits
        for
        the period commencing on the date of termination and ending on the date that
        is
        nine months after the date of termination. Basic Compensation, Incentive
        Compensation and Benefits shall be paid in the manner and at the intervals
        provided in Article II.

      

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

         

      

      (c) 
        In the
        case of termination pursuant to Section 3.01(a)(ii), the Company shall be
        obligated to pay the Executive and the Executive shall be entitled to receive,
        in complete and total satisfaction of the obligations of the Company hereunder,
        an amount equal to Basic Compensation, Incentive Compensation and Benefits
        through the date of such termination. 

      

      (d) In
        the
        case of termination of the Executive by the Company other than pursuant to
        Section 3.01(a) or Section 3.02, the Company shall be obligated to pay the
        Executive and the Executive shall be entitled to receive, in complete and
        total
        satisfaction of the obligations of the Company hereunder, an amount equal
        to
        Basic Compensation commencing on the date of termination and ending nine
        months
        thereafter. Basic Compensation shall be paid at the intervals set forth in
        Article II.

      

      Section
        3.02. Death.
        In the
        event of the death of the Executive during the Employment Period, the Employment
        Period shall terminate on the date of death and the Executive's designated
        beneficiary or, if none, his estate shall be entitled to receive, in complete
        and total satisfaction of the Company's obligations hereunder, Basic
        Compensation, Incentive Compensation and Benefits through such date of death
        and
        for a period of 90 days thereafter. 

      

      Section
        3.03. Termination
        of Employment by the Executive.
        (a)
        If
        during the Employment Period there should occur any of the following events
        (each of the following being an event giving the Executive the right to resign
        for "Good Reason”): (i)
        a
        change in the title and/or responsibilities of the Executive, such that the
        Executive is no longer functionally the Senior Vice President and General
        Counsel of the Company and no longer has such responsibilities and authorities
        as are customarily exercisable by the Senior Vice President and General Counsel
        of a corporation or (ii)
        a
        failure by the Company to provide the Executive with Basic Compensation,
        Incentive Compensation or Benefits, other than a failure that is not in bad
        faith and is remedied by the Company within 15 days after receipt of notice
        thereof given by the Executive, or (iii) a breach by the Company of a material
        term of this Agreement that is not remedied by the Company within 15 days
        of
        notice thereof by the Executive, the Executive may elect to terminate his
        employment by notice to the Company (subject to Article IV). If the Executive
        exercises such election, the Employment Period shall terminate effective
        upon
        the later to occur of (x) receipt of such notice by the Company and (y)
        expiration of the 15-day period referred to in Section 3.03(a)(ii) or
        (iii).

      

      (b)
         If
        the
        Executive exercises his election to terminate pursuant to Section 3.03(a),
        the
        Company shall be obligated to pay the Executive and the Executive shall be
        entitled to receive, in complete and total satisfaction of the obligations
        of
        the Company hereunder, an amount equal to Basic Compensation for the period
        commencing on the date of such termination and ending nine months
        thereafter.

      

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

         

      

      (c)
         If
        the
        Executive terminates this Employment Agreement for any reason other than
        those
        contained in Section 3.03(a), or this Agreement terminates pursuant to Section
        3.02, the rights and obligations of the parties hereunder shall terminate
        immediately (except as otherwise provided in Article IV) and the Employment
        Period shall terminate immediately except that the Executive shall be entitled
        to receive, in complete and total satisfaction of the obligations of the
        Company
        hereunder, his Basic Compensation, Incentive Compensation and Benefits through
        the date of such termination.

      

      Section
        3.04. Change
        of Control.
        In the
        event the Executive terminates his employment within six months following
        a
        Change of Control (as defined in Section 3.05), the Company shall be obligated
        to pay the Executive, and the Executive shall be entitled to receive in complete
        and total satisfaction of the obligations of the Company hereunder, an amount
        equal to the Executive’s Basic Compensation for the period commencing on the
        date of termination and ending on July 29, 2007, or, if a larger period,
        nine
        months thereafter.

      

      Section
        3.05. Definitions
        of Certain Terms.
        (a)
        "Disability" shall mean any physical or mental condition of the Executive
        that
        renders the Executive incapable of performing any substantial portion of
        the
        services contemplated hereby (as confirmed by competent medical evidence)
        and
        that has continued for at least 90 consecutive business days in any 12-month
        period or a total of six months during any 12-month period. 

      

      (b)
         The
        following shall constitute conduct entitling the Company to terminate the
        Executive's employment for "Cause": (i) the Executive's willful refusal to
        perform or substantial disregard of the Executive’s duties to the Company that
        is not cured within ten days of written notice (specifying the failure) thereof
        from the Board, (ii) the commission by the Executive of a willful and material
        breach of Article IV, (iii) the conviction of any felony by the Executive
        (or
        the equivalent thereof under the laws of any state), (iv) the commission
        of any
        act constituting financial dishonesty against the Company (which act would
        be
        chargeable as a crime under applicable law), (v) the Executive‘s engaging in any
        other act of dishonesty, fraud, intentional misrepresentation, moral turpitude,
        illegality or harassment that, as determined in good faith by the Board,
        would
        (A) materially adversely affect the business or reputation of the Company
        with
        its current or prospective customers, supplies, lenders and/or other third
        parties with whom it does or might do business or (B) expose the Company
        to a
        risk of civil or criminal legal damage, liabilities or penalties, (vi) the
        repeated failure by the Executive to follow the directives of the Company’s
        chief executive officer or Board, or (vii) any material misconduct by the
        Executive in connection with the business affairs of the Company.

      

      It
        shall
        be presumed that any termination of the Executive by the Company is without
        Cause, and such presumption may only be overcome by clear and convincing
        evidence that the termination of the Executive’s employment can properly be
        construed as for Cause. If the issue of “Cause” is litigated in a proceeding in
        any court or through any means of alternative dispute resolution and such
        issue
        is resolved in the Executive’s favor, the Company shall reimburse the Executive
        for all reasonable attorney’s fees, costs and expenses incurred by the Executive
        in such proceeding. 

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

         

      

      (c)
         ”Change
        of Control“ shall mean: (i)
        a
        merger or consolidation of the Company with or into another corporation other
        than a transaction (A) in which the Company is the surviving Corporation
        (except
        where such other merger or consolidation party is controlled by or under
        common
        control with another corporation) or (B) merging or consolidating the Company
        with any corporation controlling, controlled by or under common control with
        the
        Company (in which case the surviving corporation shall be deemed the ”Company“
        for purposes of this Agreement), or (ii)
        the
        sale of all or substantially all the assets of the Company to any corporation
        or
        entity, other than a sale to any corporation or entity controlling, controlled
        by or under common control with the Company prior to such transaction (in
        which
        case the surviving corporation shall be deemed the ”Company“ for purposes of
        this Agreement). 

      

      ARTICLE
        IV

      

      Non-Competition;
        Confidential Information

      

      Section
        4.01 Non-Competition.
        (a)
        Subject to Sections 4.01(b) and 4.01(c), the Executive shall not engage in
        any
        activities, whether as employer, proprietor, partner, stockholder (other
        than as
        the holder of less than 5% of the stock of a corporation listed on a national
        securities exchange or in the National Association of Securities Dealers,
        Inc.
        Automated Quotation System (such a corporation being hereinafter referred
        to as
        a "Public Corporation")), director, employee, consultant or otherwise, of
        any
        company with substantially the same business as or that competes directly
        with
        the Company in the United States during the following periods: 

      

      (i)
        the
        Employment Period; and

      

      (ii)
        during any period after the termination of this Agreement pursuant to Article
        3
        for which the Executive is being or has been paid Basic
        Compensation.

      

      (b)
         The
        Executive shall not be deemed to be in breach of this Agreement by reason
        of
        services performed for a subsidiary or affiliate of the Company.

       

      (c)
        Notwithstanding anything to the contrary contained herein, if the Company
        finds
        that the Executive has violated any covenants contained in Section 4.01,
        4.02 or
        4.03, the Company shall be obligated to pay any amounts due to the Executive
        ("Escrow Amount") to Goodwin Procter LLP, as escrow agent ("Escrow Agent"),
        at
        599 Lexington Avenue, New York, New York 10022. Escrow Agent shall hold the
        Escrow Amount in escrow until a court or agency legally empowered to enforce
        the
        covenants contained in Section 4.01, 4.02 and 4.03 reaches a final determination
        whether the Executive has violated any such covenants or until mutually
        instructed by the parties. Escrow Agent shall disburse the Escrow Amount
        in
        accordance with such court or agency's final determination or pursuant to
        such
        party instructions.

      

      Section
        4.02 Non-Interference.
        During
        the Employment Period and the period of non-competition as determined pursuant
        to Section 4.01(a), the Executive:

       

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

      

      (a)
         shall
        not
        publicly disparage any of the products, services or actions of the Company
        or
        any of the Company's subsidiaries or affiliates; and

      

      (b)
         shall
        not, whether for his own account or for the account of any other individual,
        partnership, firm, corporation or other business organization, solicit, endeavor
        to entice away from the Company, or otherwise interfere with the relationship
        of
        the Company with any person or entity who is, or was within the then most
        recent
        12-month period, a customer or client of the Company.

       

      Section
        4.03. Trade
        Secrets.
        The
        Executive shall not, at any time during the Employment Period or thereafter,
        use
        (except for the sole benefit of the Company, the Company's subsidiaries and
        affiliates) or, without the written consent of the Board, divulge to any
        person
        (other than, during the Employment Period, an executive of the Company or
        any of
        the Company's subsidiaries or other person to whom disclosure is reasonably
        necessary or appropriate or legally required in connection with the Executive's
        duties hereunder) any trade secrets or other confidential information of
        the
        Company or any of its subsidiaries or affiliates, except to the extent that
        (a)
        such information becomes a matter of public record, or is published in a
        newspaper, magazine or other periodical available to the general public,
        in each
        case, through no violation of this Agreement by the Executive or (b) such
        disclosure is required by oral questions, interrogatories, requests for
        information or documents, subpoena, civil investigative demand or similar
        process provided that the Executive shall immediately notify the Company
        of the
        existence, terms and circumstances surrounding such a request so that it
        may
        seek an appropriate protective order. When the Executive ceases to be employed
        by the Company, the Executive shall surrender to the Company all records
        and
        documents in any form obtained by him or entrusted to him during the course
        of
        his employment hereunder (together with all copies thereof) that pertain
        to the
        business of the Company or its subsidiaries or affiliates or that were paid
        for
        by the Company or any of the Company's subsidiaries or affiliates provided
        that
        the Executive may retain copies of such documents as may be necessary for
        the
        Executive's personal records for federal income tax purposes or, with the
        approval of the Board, for other purposes relating to the Executive's legal
        affairs, which approval shall not be unreasonably withheld.

      

      Section
        4.04. Survival
        of Terms.
        The
        covenants contained in Sections 4.01, 4.02 and 4.03 shall survive the
        termination of the Executive's employment.

      

      ARTICLE
        V

      

      Miscellaneous

      

      Section
        5.01. Services
        as Officer or Director.
        During
        the Employment Period, the Executive shall, if elected or appointed, serve
        as a
        director of the Company and as an officer and director of all current and
        future
        subsidiaries and affiliates of the Company without any additional compensation
        for such services provided that the Executive shall be provided with reasonable
        and customary directors and officers insurance if any such corporation is
        or
        becomes publicly held and further provided that the Company shall cause any
        such
        subsidiary and affiliate to save the Executive harmless from any and all
        liability arising out of the performance of the Executive’s duties as director
        and officer.

      

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

         

      

      Section
        5.02. Right
        to Change Business.
        This
        Agreement and any rights or privileges granted to the Executive hereunder
        shall
        not prevent the Company or any of the Company's subsidiaries from exercising
        its
        corporate powers to modify the business operations or activities of such
        entity.

      

      Section
        5.03. Notices.
        Any
        notice or request required or permitted to be given under this Employment
        Agreement shall be sufficient if in writing and delivered personally or sent
        by
        registered mail, return receipt requested, to the addresses set forth below
        or
        to any other address designated by either party by notice similarly given.
        Such
        notice shall be deemed to have been given upon the personal delivery thereof
        or
        three days after the date of such mailing thereof, as the case may
        be.

      

      If
        to the
        Executive, to:

      J.
        Robert
        Horton

      c/o
        DOV
        Pharmaceutical, Inc.

      433
        Hackensack Avenue

      Hackensack,
        New Jersey 07601

      

      If
        to the
        Company, to:

      

      DOV
        Pharmaceutical, Inc.

      433
        Hackensack Avenue

      Hackensack,
        New Jersey 07601

      Attention
        of the CEO

       

      Section
        5.05. Assignment
        and Succession.
        The
        Executive acknowledges that the services to be rendered by him hereunder
        are
        unique and personal. Accordingly, the Executive may not assign any of his
        rights
        or delegate any of his duties or obligations under this Agreement. The rights
        and obligations of the Company under this Agreement shall inure to the benefit
        of and be binding upon its successors and assigns.

      

      Section
        5.06. Headings.
        The
        headings contained in this Agreement are for convenience of reference only
        and
        shall not define or limit the provisions hereof.

      

      Section
        5.07. Applicable
        Law.
        This
        Agreement shall be interpreted in accordance with the laws of the State of
        New
        Jersey, without regard to conflict of law rules. Each party hereby irrevocably
        consents and submits to the in personam
        jurisdiction of any court of general jurisdiction in the State of New Jersey,
        which shall serve as the sole and exclusive forum in any suit, action or
        proceeding arising out of or in connection with this Agreement.

      

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

         

      

      Section
        5.08. Withholding
        Taxes.
        The
        Company may withhold from any amounts payable under this Agreement such federal,
        state or local taxes as shall be required to be withheld pursuant to any
        applicable law or regulations.

      

      Section
        5.9. Entire
        Agreement; Amendments.
        This
        Agreement contains the entire understanding of the parties hereto with regard
        to
        the subject matter contained herein, and supersedes all prior agreements
        including the employment agreement dated as of July 29, 2002, or understandings
        between the parties hereto or any related parties. This Agreement may be
        amended
        only pursuant to a writing signed by both parties hereto.

      

      Section
        5.10. Waivers.
        Any
        term or provisions of this Agreement may be waived, or the time for its
        performance may be extended, by the party or parties entitled to the benefits
        thereof but only to the extent evidenced by a writing executed by such party.
        The failure of any party hereto to enforce at any time any provision of this
        Agreement shall not be construed to be a waiver of such provision, nor in
        any
        way to affect the validity of this Agreement or any part hereof or the right
        of
        any party thereafter to enforce each and every such provision. No waiver
        of any
        breach of this Agreement shall be held to constitute a waiver of any other
        or
        subsequent breach.

      

      Section
        5.11. Partial
        Invalidity.
        Each
        provision hereof shall be interpreted in such manner as to be effective and
        valid under applicable law, but in case any one or more of the provisions
        contained herein is for any reason held to be unenforceable in any respect,
        such
        unenforceability shall not affect any other provisions of this Agreement,
        and
        this Agreement shall be construed as if such unenforceable provision or
        provisions had never been contained herein unless the deletion of such provision
        or provisions would result in such a material change as to cause the remaining
        terms hereof to be unreasonable.

       

      Section
        5.12. Execution
        of Counterparts.
        This
        Agreement may be executed in one or more counterparts, each of which shall
        be
        considered an original instrument, but all of which shall be considered one
        and
        the same agreement, and shall become binding when one or more counterparts
        have
        been signed by each of the parties and delivered to the other.

      

      IN
        WITNESS WHEREOF the Company has caused this Agreement to be signed by its
        duly
        authorized officer and the Executive has signed this Agreement as of the
        day and
        year first above written.

       

      
        
          	 	 	 
	 	DOV
                  Pharmaceutical, Inc.
	 
 	 
 	 
 
	 	By:  	/s/
                  Arnold Lippa
	 	
                  
Name:
                  Arnold Lippa
	 	Title: CEO 
	 	 
	 	/s/ J. Robert Horton 
	 	
                  

                  J.
                    Robert Horton

                

        

         

        
           

        

        
          
            
            

          

          9

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