Document:

Exhibit
      10.42

    

    EMPLOYMENT
      AGREEMENT dated as of December 1, 2005, between Scott Myers (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 upon commencement
      of
      the Executive’s employment and, unless sooner terminated pursuant to Article III
      hereof, shall terminate on the date that is three years thereafter (the “Initial
      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 of Strategic Marketing and Commercialization 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 of Strategic Marketing
      and Commercialization of a corporation. The Executive shall also perform such
      other executive and administrative duties (not inconsistent with the position
      of
      Senior Vice President of Strategic Marketing and Commercialization) 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 in the Company’s stock option
      program. The terms of options held by the Executive (including the 285,000
      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 non-qualified options to purchase 285,000
      shares of the Company’s common stock at a strike price determined by the closing
      price on commencement of the executive’s employment, 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.

    

    
      
         

      

      
        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
      Company shall pay the Executive for expenses incurred by the Executive for
      corporate housing and travel to and from his primary residence until the earlier
      of the Company’s relocation and May 31, 2006. 

    

    (g) The
      Company shall reimburse the Executive for reasonable legal fees and expenses
      up
      to $8,000 incurred in connection with review of this Employment
      Agreement.

    

    (h) 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

            

    

     

    
      
         

      

      
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    (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.

    

    (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 three years
      after commencement of employment. 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 of Strategic
      Marketing and Commercialization and no longer has such responsibilities and
      authorities as are customarily exercisable by the Senior Vice President of
      Strategic Marketing and Commercialization 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 three years after
      commencement of employment.

    

    
      
         

      

      
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    (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 three years after commencement of employment
      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. 

    

    
      
         

      

      
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    (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.

    

    
      
         

      

      
        6

        
          

        

      

      
         

      

       

    

    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:

    

    (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.

    

    
      
         

      

      
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    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.

    

    
      
         

      

      
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    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 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/ J.
              Robert
              Horton
	 	
              
J.
              Robert Horton
	 	Senior
              Vice President and General Counsel

      	 	 	 
	 	By:  	/s/ Scott
              Myers
	 	
              
Scott
              Myers
	 	 

    

     

    
      
         

      

      
        9Stock
      Option Agreement

    Relating
      to but not under the DOV Pharmaceutical, Inc.

    2000
      Stock Option and Grant Plan

    

    
      
        	Name
                of Optionee:	
                Scott
                  Myers (the
                  “Optionee”)

              

      

      
        	 	 

      

      
        	No.
                of Option
                Shares:	285,000 Shares of Common
                Stock

      

      
        	 	 

      

      
        	Grant
                Date:	December 1, 2005 (the “Grant
                Date”)

      

      
        	 	 

      

      
        	50%
                Vesting
                Date  	50% on June 1,
                2007

      

      
        	 	 

      

      
        	Further
                Vesting
                Schedule 	8.33%
                ratably thereafter per quarter (subject to change of control acceleration
                pursuant to Section 2.03 (b) of December 1, 2005 employment
                agreement)

      

      
        	 	 

      

      
        	Expiration
                Date:	December 1, 2015 (the “Expiration
                Date”)

      

      
        	 	 

      

      
        	Option
                Exercise
                Price/Share:	$14.28
                (the “Option Exercise Price”)

      

    

     

    DOV
      Pharmaceutical, Inc., a Delaware corporation (together with all successors
      thereto, the Company), hereby grants to the Optionee, who is an officer,
      employee, director, consultant or other key person of the Company or any of
      its
      Subsidiaries, an option (the Stock Option) to purchase on or prior to the
      Expiration Date, or such earlier date as is specified herein, all or any part
      of
      the number of shares of Common Stock, par value $0.0001 per share (Common
      Stock),
      of the
      Company indicated above (the Option Shares, and such shares once issued shall
      be
      referred to as the Issued Shares), at the Option Exercise Price, subject to
      the
      terms and conditions set forth in this Qualified Stock Option Agreement (this
      “Agreement”). 

    

    1. Definitions.
      For the
      purposes of this Agreement, the following terms shall have the following
      respective meanings. All capitalized terms used herein and not otherwise defined
      shall have the respective meanings set forth in the Plan.

    

    An
      Affiliate
      of any
      Person means a Person that directly or indirectly, through one or more
      intermediaries, controls, is controlled by or is under common control with
      the
      first mentioned Person. A Person shall be deemed to control another Person
      if
      such first person possesses directly or indirectly the power to direct, or
      cause
      the direction of, the management and
      policies of the second Person, whether through the ownership of voting
      securities, by contract or otherwise. 

    

    Bankruptcy
      shall
      mean (i) the filing of a voluntary petition under any bankruptcy or insolvency
      law, or a petition for the appointment of a receiver or the making of an
      assignment for the benefit of creditors, with respect to the Optionee or any
      Permitted Transferee, or (ii) the Optionee or any Permitted Transferee being
      subjected involuntarily to such a petition or assignment or to an attachment
      or
      other legal or equitable interest with respect to the Optionee¢s
      or such
      Permitted Transferee¢s
      assets,
      which involuntary petition or assignment or attachment is not discharged within
      sixty (60) days after its date, and (iii) the Optionee or any Permitted
      Transferee being subject to a transfer of the Stock Option or the Issued Shares
      by operation of law, except by reason of death.

    

    Cause
      shall
      mean a vote of the Board resolving that the Optionee should be dismissed as
      a
      result of (i) the commission of any act by the Optionee constituting financial
      dishonesty against the Company (which act would be chargeable as a crime under
      applicable law); (ii) the Optionee¢s
      engaging in any other act of dishonesty, fraud, intentional misrepresentation,
      moral turpitude, illegality or harassment which, as determined in good faith
      by
      the Board, would: (A) materially adversely affect the business or the reputation
      of the Company with its current or prospective customers, suppliers, 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 damages, liabilities or
      penalties; (iii) the repeated failure by the Optionee to follow the directives
      of the Company¢s
      chief
      executive officer or Board or (iv) any material misconduct, violation of the
      Company¢s
      policies, or willful and deliberate non-performance of duty by the Optionee
      in
      connection with the business affairs of the Company.

    

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

       

    

    Permitted
      Transferees
      shall
      mean any of the following to whom the Optionee may transfer Issued Shares
      hereunder: the Optionee¢s
      spouse,
      children (natural or adopted), stepchildren or a trust for their sole benefit
      of
      which the Optionee is the settlor; provided,
      however,
      that
      any such trust does not require or permit distribution of any Issued Shares
      during the term of this Agreement unless subject to its terms. Upon the death
      of
      the Optionee (or a Permitted Transferee to whom shares have been transferred
      hereunder), the term Permitted Transferees shall also include such deceased
      Optionee¢s
      (or
      such deceased Permitted Transferees) estate, executions, administrations,
      personal representations, heirs, legatees and distributees, as the case may
      be.

    

    Person
      shall
      mean any individual, corporation, partnership (limited or general), limited
      liability company, limited liability partnership, association, trust, joint
      venture, unincorporated organization or any similar entity.

    

    Sale
      Event
      shall
      mean, regardless of form thereof, consummation of (i) the dissolution or
      liquidation of the Company, (ii) the sale of all or substantially all the assets
      of the Company on a consolidated basis to an unrelated person or entity, (iii)
      a
      merger, reorganization or consolidation in which the outstanding shares of
      Stock
      are converted into or exchanged for a different kind of securities of the
      successor entity and the holders of the Company¢s
      outstanding voting power immediately prior to such transaction do not own a
      majority of the outstanding voting power of the successor entity immediately
      upon completion of such transaction, (iv) the sale of all or a majority of
      the
      outstanding capital stock of the Company to an unrelated person or entity or
      (v)
      any other transaction in which the owners of the Company¢s
      outstanding voting power immediately prior to such transaction do not own at
      least a majority of the outstanding voting power of the successor entity
      immediately upon completion of the transaction.

    

    Service
      Relationship
      shall
      mean any relationship as an employee, part-time employee, director or consultant
      of the Company or any Subsidiary of the Company such that, for example, a
      Service Relationship shall be deemed to continue without interruption in the
      event the Optionee¢s
      status
      changes from full-time employee to part-time employee or
      consultant.

    

    Subsidiary
      shall
      mean any corporation (other than the Company) in any unbroken chain of
      corporations or other entities beginning with the Company if each of the
      corporations (other than the last corporation in the unbroken chain) owns stock
      or other interests possessing 50 percent or more of the total combined voting
      power of all classes of stock or in one of the other corporations in the
      chain.

    

    2. Vesting,
      Exercisability, and Termination.
      

    

    (a) No
      portion of this Stock Option may be exercised until such portion shall have
      vested.

    

    (b) Except
      as
      set forth in Section 6, and subject to the determination of the Committee
      to accelerate the above vesting schedule, this Stock Option shall be vested
      and
      exercisable with respect to the Option Shares as set forth above.

    

    (c) Termination.
      Except
      as may otherwise be provided by the Committee, if the Optionee¢s
      Service
      Relationship with the Company or a Subsidiary is terminated, the period within
      which to exercise this Stock Option may be subject to earlier termination as
      set
      forth below:

    

    (i) Termination
      Due to Death, Disability or Retirement.
      If the
      Optionee¢s
      Service
      Relationship terminates by reason of such Optionee¢s
      death,
      disability (as defined in Section 422(c) of the Code) or retirement (after
      attainment of age sixty (60)) this Stock Option may be exercised, to the extent
      exercisable on the date of such termination, by the Optionee, the
      Optionee¢s
      legal
      representative or legatee for a period of twelve (12) months from the date
      of
      death, disability or retirement or until the Expiration Date, if
      earlier. 

    

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

       

    

    (ii) Other
      Termination.
      If the
      Optionee¢s
      employment terminates for any reason other than death, disability or retirement
      (after attainment of age sixty (60)), and unless otherwise determined by the
      Committee, this Stock Option may be exercised, to the extent exercisable on
      the
      date of termination, for a period of ninety (90) days from the date of
      termination or until the Expiration Date, if earlier, provided
      however,
      if the
      Optionee¢s
      Service
      Relationship is terminated for Cause, this Stock Option shall terminate
      immediately upon the date of such termination.

    

    For
      purposes hereof, the Committee¢s
      determination of the reason for termination of the Optionee¢s
      Service
      Relationship shall be conclusive and binding on the Optionee and his or her
      representatives or legatees. Any portion of the Stock Option that is not
      exercisable on the date of termination of the Service Relationship shall
      terminate immediately and be null and void.

    

    (d) It
      is
      understood and intended that this Stock Option is not intended to qualify as
      an
      incentive stock option as defined in Section 422 of the Code.

    

    3. Exercise
      of Stock Option.

    

    (a) The
      Optionee may exercise this Stock Option only in the following manner: Prior
      to
      the Expiration Date (subject to Section 6), the Optionee may deliver a Stock
      Option exercise notice (an Exercise
      Notice)
      in the
      form of Appendix
      A
      hereto
      indicating his or her election to purchase some or all of the Option Shares
      with
      respect to which this Stock Option is exercisable at the time of such notice.
      Such notice shall specify the number of Option Shares to be purchased. Payment
      of the purchase price may be made by one or more of the methods described below.
      Payment instruments will be received subject to collection.

    

    (i) in
      cash,
      by certified or bank check, or other instrument acceptable to the Committee
      in
      U.S. funds payable to the order of the Company in an amount equal to the
      purchase price of such Option Shares;

    

    (ii) by
      the
      Optionee delivering to the Company a promissory note if the Board has expressly
      authorized the loan of funds to the Optionee for the purpose of enabling or
      assisting the Optionee to effect the exercise of his or her Stock Option;
      provided that at least so much of the exercise price as represents the par
      value
      of the Stock shall be paid other than with a promissory note if otherwise
      required by state law; or

    

    (iii) if
      the
      Initial Public Offering has occurred, then (A) through the delivery (or
      attestation to ownership) of shares of Common Stock that have been purchased
      by
      the Optionee on the open market or that have been held by the Optionee for
      at
      least six months and are not subject to restrictions under any plan of the
      Company, (B) by the Optionee delivering to the Company a properly executed
      Exercise Notice together with irrevocable instructions to a broker to promptly
      deliver to the Company cash or a check payable and acceptable to the Company
      to
      pay the option purchase price, provided that in the event the Optionee chooses
      to pay the option purchase price as so provided, the Optionee and the broker
      shall comply with such procedures and enter into such agreements of indemnity
      and other agreements as the Committee shall prescribe as a condition of such
      payment procedure, or (C) a combination of (i), (ii), (iii)(A) and (iii)(B)
      above.

    

    (b) Certificates
      for the Option Shares so purchased will be issued and delivered to the Optionee
      upon compliance to the satisfaction of the Committee with all requirements
      under
      applicable laws or regulations in connection with such issuance. Until the
      Optionee shall have complied with the requirements hereof, the Company shall
      be
      under no obligation to issue the Option Shares subject to this Stock Option,
      and
      the determination of the Committee as to such compliance shall be final and
      binding on the Optionee. The Optionee shall not be deemed to be the holder
      of,
      or to have any of the rights of a holder with respect to, any shares of Common
      Stock subject to this Stock Option unless and until this Stock Option shall
      have
      been exercised pursuant to the terms hereof, the Company shall have issued
      and
      delivered the Issued Shares to the Optionee, and the Optionee¢s
      name
      shall have been entered as a stockholder of record on the books of the Company.
      Thereupon, the Optionee shall have full dividend and other ownership rights
      with
      respect to such Issued Shares, subject to the terms of this
      Agreement.

    

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

       

    

    (c) Notwithstanding
      any other provision hereof, no portion of this Stock Option shall be exercisable
      after the Expiration Date.

    

    4. Incorporation
      of Plan.
      Notwithstanding anything herein to the contrary, this Stock Option shall also
      be
      subject to and governed by all the terms and conditions of the Plan that are
      not
      necessary to achieve or maintain incentive stock option status under section
      422
      of the Code. 

    

    5. Transferability
      of Stock Option.
      This
      Agreement is personal to the Optionee and is not transferable by the Optionee
      in
      any manner other than by will or by the laws of descent and distribution. The
      Stock Option may be exercised during the Optionee¢s
      lifetime only by the Optionee (or by the Optionee¢s
      guardian or personal representative in the event of the Optionee¢s
      incapacity). The Optionee may elect to designate a beneficiary by providing
      written notice of the name of such beneficiary to the Company, and may revoke
      or
      change such designation at any time by filing written notice of revocation
      or
      change with the Company; such beneficiary may exercise the Optionee¢s
      Stock
      Option in the event of the Optionee¢s
      death
      to the extent provided herein. If the Optionee does not designate a beneficiary,
      or if the designated beneficiary predeceases the Optionee, the legal
      representative of the Optionee may exercise this Stock Option to the extent
      provided herein in the event of the Optionee¢s
      death.

    

    6. Effect
      of Certain Transactions.
      In
      the
      case of a Sale Event, this Stock Option shall terminate upon the effective
      time
      of any such Sale Event unless provision is made in connection with such
      transaction in the sole discretion of the parties thereto for the continuation
      or assumption of this Stock Option heretofore granted, or the substitution
      of
      this Stock Option with a new Stock Option of the successor entity or a parent
      thereof, with such adjustment as to the number and kind of shares and the per
      share exercise prices as such parties shall agree. In the event of such
      termination, the Optionee shall be permitted, for a specified period of time
      prior to the consummation of the Sale Event as determined by the Committee,
      to
      exercise all or portions of the Stock Option which are then
      exercisable.

    

    7. Withholding
      Taxes.
      The
      Optionee shall, not later than the date as of which the exercise of this Stock
      Option becomes a taxable event for federal income tax purposes, pay to the
      Company or make arrangements satisfactory to the Committee for payment of any
      federal, state and local taxes required by law to be withheld on account of
      such
      taxable event. Subject to approval by the Committee, the Optionee may elect
      to
      have the minimum tax withholding obligation satisfied, in whole or in part,
      by
      authorizing the Company to withhold from shares of Common Stock to be issued
      or
      transferring to the Company, a number of shares of Common Stock with an
      aggregate Fair Market Value that would satisfy the minimum withholding amount
      due. The Optionee acknowledges and agrees that the Company or any Subsidiary
      of
      the Company has the right to deduct from payments of any kind otherwise due
      to
      the Optionee, or from the Option Shares to be issued in respect of an exercise
      of this Stock Option, any federal, state or local taxes of any kind required
      by
      law to be withheld with respect to the issuance of Option Shares to the
      Optionee.

    

    8. Restrictions
      on Transfer of Issued Shares.
      None of
      the Issued Shares acquired upon exercise of the Stock Option shall be sold,
      assigned, transferred, pledged, hypothecated, given away or in any other manner
      disposed of or encumbered, whether voluntarily or by operation of law, unless
      such transfer is in compliance with all applicable securities laws (including,
      without limitation, the Securities Act of 1933, as amended, and the rules and
      regulations thereunder (the Act)),
      and
      such disposition is in accordance with the terms and conditions of Sections
      8
      and 9. In connection with any transfer of Issued Shares, the Company may require
      the transferor to provide at the Optionee¢s
      own
      expense an opinion of counsel to the transferor, satisfactory to the Company,
      that such transfer is in compliance with all foreign, federal and state
      securities laws (including, without limitation, the Act). Any attempted
      disposition of Issued Shares not in accordance with the terms and conditions
      of
      Sections 8 and 9 shall be null and void, and the Company shall not reflect
      on
      its records any change in record ownership of any Issued Shares as a result
      of
      any such disposition, shall otherwise refuse to recognize any such disposition
      and shall not in any way give effect to any such disposition of any Issued
      Shares. Subject to the foregoing general provisions, Issued Shares may be
      transferred pursuant to the following specific terms and
      conditions:

    

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

       

    

    (a) Transfers
      to Permitted Transferees.
      The
      Optionee may sell, assign, transfer or give away any or all of the Issued Shares
      to Permitted Transferees; provided,
      however,
      that
      such Permitted Transferee(s) shall, as a condition to any such transfer, agree
      to be subject to the provisions of this Agreement to the same extent as the
      Optionee (including, without limitation, the provisions of Sections 8, 9, 10
      and
      12) and shall have delivered a written acknowledgment to that effect to the
      Company.

    

    (b) Transfers
      Upon Death.
      Upon
      the death of the Optionee, any Issued Shares then held by the Optionee at the
      time of such death and any Issued Shares acquired thereafter by the
      Optionee¢s
      legal
      representative pursuant to this Agreement shall be subject to the provisions
      of
      Sections 8, 9, 10 and 12, if applicable, and the Optionee¢s
      estate,
      executors, administrators, personal representatives, heirs, legatees and
      distributees shall be obligated to convey such Issued Shares to the Company
      or
      its assigns under the terms contemplated hereby.

    

    (c) Company’s
      Right of First Refusal.
      In the
      event that the Optionee (or any Permitted Transferee holding Issued Shares
      subject to this Section 8(c)) desires to sell or otherwise transfer all or
      any
      part of the Issued Shares, the Optionee (or Permitted Transferee) first shall
      give written notice to the Company of the Optionee¢s
      (or
      Permitted Transferee¢s)
      intention to make such transfer. Such notice shall state the number of Issued
      Shares which the Optionee (or Permitted Transferee) proposes to sell (the
Offered
      Shares),
      the
      price and the terms at which the proposed sale is to be made and the name and
      address of the proposed transferee. At any time within thirty (30) days after
      the receipt of such notice by the Company, the Company or its assigns may elect
      to purchase all or any portion of the Offered Shares at the price and on the
      terms offered by the proposed transferee and specified in the notice. The
      Company or its assigns shall exercise this right by mailing or delivering
      written notice to the Optionee (or Permitted Transferee) within the foregoing
      30-day period. If the Company or its assigns elect to exercise its purchase
      rights under this Section 8(c), the closing for such purchase shall, in any
      event, take place within forty-five (45) days after the receipt by the Company
      of the initial notice from the Optionee (or Permitted Transferee). In the event
      that the Company or its assigns do not elect to exercise such purchase right,
      or
      in the event that the Company or its assigns do not pay the full purchase price
      within such 45-day period, the Optionee (or Permitted Transferee) may, within
      sixty (60) days thereafter, sell the Offered Shares to the proposed transferee
      and at the same price and on the same terms as specified in the
      Optionee¢s
      (or
      Permitted Transferee¢s)
      notice. Any Shares purchased by such proposed transferee shall no longer be
      subject to the terms of this Agreement. Any Shares not sold to the proposed
      transferee shall remain subject to this Agreement.

    

    9. Company¢s
      Right of Repurchase.

    

    (a) Right
      of Repurchase.
      The
      Company shall have the right (the Repurchase
      Right)
      upon
      the occurrence of any of the events specified in Section 9(b) below (the
Repurchase
      Event)
      to
      repurchase from the Optionee (or any Permitted Transferee) some or all (as
      determined by the Company) of the Issued Shares held or subsequently acquired
      upon exercise of this Stock Option in accordance with the terms hereof by the
      Optionee (or any Permitted Transferee) at the price per share specified below.
      The Repurchase Right may be exercised by the Company within twenty-four (24)
      months following the date of such event (the Repurchase
      Period).
      The
      Repurchase Right shall be exercised by the Company by giving the holder written
      notice on or before the last day of the Repurchase Period of its intention
      to
      exercise the Repurchase Right, and, together with such notice, tendering to
      the
      holder an amount equal to the Fair Market Value of the shares, determined as
      provided in Section 9(c). The Company may assign the Repurchase Right to one
      or
      more Persons. Upon such notification, the Optionee and any Permitted Transferees
      shall promptly surrender to the Company any certificates representing the Issued
      Shares being purchased, together with a duly executed stock power for the
      transfer of such Issued Shares to the Company or the Company¢s
      assignee or assignees. Upon the Company¢s
      or its
      assignee¢s
      receipt
      of the certificates from the Optionee or any Permitted Transferees, the Company
      or its assignee or assignees shall deliver to him, her or them a check for
      the
      Repurchase Price of the Issued Shares being purchased; provided,
      however,
      that
      the Company may pay the Repurchase Price for such shares by offsetting and
      canceling any indebtedness then owed by the Optionee to the Company. At such
      time, the Optionee and/or any holder of the Issued Shares shall deliver to
      the
      Company the certificate or certificates representing the Issued Shares so
      repurchased, duly endorsed for transfer, free and clear of any liens or
      encumbrances.

    

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

       

    

    (b) Company¢s
      Right to Exercise Repurchase Right.
      The
      Company shall have the Repurchase Right in the event that any of the following
      events shall occur:

    

    (i) The
      termination of the Optionee¢s
      Service
      Relationship with the Company and its Subsidiaries for any reason whatsoever,
      regardless of the circumstances thereof, and including without limitation upon
      death, disability, retirement, discharge or resignation for any reason, whether
      voluntarily or involuntarily; or

    

    (ii) The
      Optionee¢s
      or
      Permitted Transferee¢s
      Bankruptcy.

    

    (c)  Determination
      of Fair Market Value.
      The
      fair market value of the Issued Shares shall be, for purposes of this Section
      9,
      determined by the Board as of the date the Board elects to exercise its
      repurchase rights in connection with a Repurchase Event. 

    

    10. Drag
      Along Right.
      In the
      event the holders of a majority of the Company¢s
      equity
      securities then outstanding (the Majority
      Shareholders)
      determine to sell or otherwise dispose of all or substantially all the assets
      of
      the Company or all or fifty percent (50%) or more of the capital stock of the
      Company in each case in a transaction constituting a change in control of the
      Company, to any non-Affiliate(s) of the Company or any of the Majority
      Shareholders, or to cause the Company to merge with or into or consolidate
      with
      any non-Affiliate(s) of the Company or any of the Majority Shareholders (in
      each
      case, the Buyer)
      in a
bona
      fide
      negotiated transaction (a Sale),
      the
      Optionee, including any Permitted Transferees, shall be obligated to and shall
      upon the written request of a Majority Shareholders (subject to Section 6):
      (a)
      sell, transfer and deliver, or cause to be sold, transferred and delivered,
      to
      the Buyer, his or her Issued Shares (including for this purpose all of such
      Optionee¢s
      or his
      or her Permitted Transferee¢s
      Issued
      Shares that presently or as a result of any such transaction may be acquired
      upon the exercise of options (following the payment of the exercise price
      therefor)) on substantially the same terms applicable to the Majority
      Shareholders (with appropriate adjustments to reflect the conversion of
      convertible securities, the redemption of redeemable securities and the exercise
      of exercisable securities as well as the relative preferences and priorities
      of
      preferred stock); and (b) execute and deliver such instruments of conveyance
      and
      transfer and take such other action, including voting such Issued Shares in
      favor of any Sale proposed by the Majority Shareholders and executing any
      purchase agreements, merger agreements, indemnity agreements, escrow agreements
      or related documents, as the Majority Shareholders or the Buyer may reasonably
      require in order to carry out the terms and provisions of this
      Section 10.

    

    11. Escrow
      Arrangement.

    

    (a) Escrow.
      In
      order to carry out the provisions of Sections 8, 9 and 10 of this Agreement
      more
      effectively, the Company shall hold any Issued Shares in escrow together with
      separate stock powers executed by the Optionee in blank for transfer, and any
      Permitted Transferee shall, as an additional condition to any transfer of Issued
      Shares, execute a like stock power as to such Issued Shares. The Company shall
      not dispose of the Issued Shares except as otherwise provided in this Agreement.
      In the event of any repurchase by the Company (or any of its assigns), the
      Company is hereby authorized by the Optionee and any Permitted Transferee,
      as
      the Optionee¢s
      and
      each such Permitted Transferee¢s
      attorney-in-fact, to date and complete the stock powers necessary for the
      transfer of the Issued Shares being purchased and to transfer such Issued Shares
      in accordance with the terms hereof. At such time as any Issued Shares are
      no
      longer subject to the Company¢s
      repurchase and first refusal rights, the Company shall, at the written request
      of the Optionee, deliver to the Optionee (or the relevant Permitted Transferee)
      a certificate representing such Issued Shares with the balance of the Issued
      Shares to be held in escrow pursuant to this Section 11.

    

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

       

    

    (b) Remedy.
      Without
      limitation of any other provision of this Agreement or other rights, in the
      event that the Optionee, any Permitted Transferees or any other person or entity
      is required to sell the Optionee¢s
      Issued
      Shares pursuant to the provisions of Sections 8, 9 and 10 of this Agreement
      and
      in the further event that he or she refuses or for any reason fails to deliver
      to the Company or its designated purchaser of such Issued Shares the certificate
      or certificates evidencing such Issued Shares together with a related stock
      power, the Company or such designated purchaser may deposit the applicable
      purchase price for such Issued Shares with a bank designated by the Company,
      or
      with the Company¢s
      independent public accounting firm, as agent or trustee, or in escrow, for
      the
      Optionee, any Permitted Transferees or other person or entity, to be held by
      such bank or accounting firm for its benefit of and for delivery thereto, or
      in
      its discretion, pay such purchase price by offsetting any indebtedness then
      owed
      by the Optionee as provided above. Upon any such deposit and/or offset by the
      Company or its designated purchaser of such amount and upon notice to the person
      or entity who was required to sell the Issued Shares to be sold pursuant to
      the
      provisions of Sections 8, 9 and 10, such Issued Shares shall at such time be
      deemed to have been sold, assigned, transferred and conveyed to such purchaser,
      the holder thereof shall have no further rights thereto (other than the right
      to
      withdraw the payment thereof held in escrow, if applicable), and the Company
      shall record such transfer in its stock transfer book or in any appropriate
      manner.

    

    12. Lockup
      Provision.
      The
      Optionee agrees, if requested by the Company and any underwriter engaged by
      the
      Company, not to sell or otherwise transfer or dispose of any Issued Shares
      (including, without limitation pursuant to Rule 144 under the Act) held by
      him
      or her for such period following the effective date of any registration
      statement of the Company filed under the Act as the Company or such underwriter
      shall specify reasonably and in good faith, not to exceed one hundred eighty
      (180) days in the case of the Company¢s
      Initial
      Public Offering or ninety (90) days in the case of any other public offering.
      

    

    13. Miscellaneous
      Provisions.

    

    (a)  Termination.
      The
      Company¢s
      repurchase rights under Section 9, the restrictions on transfer of Issued Shares
      under Section 8(c) and the Drag Along obligations under Section 10 shall
      terminate upon the closing of the Company¢s
      Initial
      Public Offering or upon consummation of any Sale Event, as a result of which
      shares of the Company (or successor entity) of the same class as the Issued
      Shares are registered under Section 12 of the Exchange Act and publicly traded
      on NASDAQ/NMS or any national security exchange.

    

    (b) Equitable
      Relief.
      The
      parties hereto agree and declare that legal remedies may be inadequate to
      enforce the provisions of this Agreement and that equitable relief, including
      specific performance and injunctive relief, may be used to enforce the
      provisions of this Agreement.

    

    .  (c) Adjustments
      for Changes in Capital Structure.
      If, as
      a result of any reorganization, recapitalization, reclassification, stock
      dividend, stock split, reverse stock split or other similar change in the Common
      Stock, the outstanding shares of Common Stock are increased or decreased or
      are
      exchanged for a different number or kind of shares of the Company¢s
      stock,
      the restrictions contained in this Section 8 shall apply with equal force to
      additional and/or substitute securities, if any, received by the Optionee in
      exchange for, or by virtue of his or her ownership of, Issued
      Shares.

    

    (d) Change
      and Modifications.
      This
      Agreement may not be orally changed, modified or terminated, nor shall any
      oral
      waiver of any of its terms be effective. This Agreement may be changed, modified
      or terminated only by an agreement in writing signed by the Company and the
      Optionee.

    

    (e)  Governing
      Law.
      This
      Agreement shall be governed by and construed in accordance with the laws of
      Delaware without regard to conflict of law principles.

    

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

       

    

    (f ) Headings.
      The
      headings are intended only for convenience in finding the subject matter and
      do
      not constitute part of the text of this Agreement and shall not be considered
      in
      the interpretation of this Agreement.

    

    (g)  Saving
      Clause.
      If any
      provision(s) of this Agreement shall be determined to be illegal or
      unenforceable, such determination shall in no manner affect the legality or
      enforceability of any other provision hereof.

    

    (h)  Notices.
      All
      notices, requests, consents and other communications shall be in writing and
      be
      deemed given when delivered personally, by telex or facsimile transmission
      or
      when received if mailed by first class registered or certified mail, postage
      prepaid. Notices to the Company or the Optionee shall be addressed as set forth
      underneath their signatures below, or to such other address or addresses as
      may
      have been furnished by such party in writing to the other. 

    

    (i)  Benefit
      and Binding Effect.
      This
      Agreement shall be binding upon and shall inure to the benefit of the parties
      hereto, their respective successors, permitted assigns, and legal
      representatives. The Company has the right to assign this Agreement, and such
      assignee shall become entitled to all the rights of the Company hereunder to
      the
      extent of such assignment.

    

    (j) Dispute
      Resolution.
      Except
      as provided below, any dispute arising out of or relating to this Agreement
      or
      the breach, termination or validity hereof shall be finally settled by binding
      arbitration conducted expeditiously in accordance with the J.A.M.S./Endispute
      Comprehensive Arbitration Rules and Procedures (the J.A.M.S. Rules). The
      arbitration shall be governed by the United States Arbitration Act, 9 U.S.C.
      sec.
      1-16,
      and
      judgment upon the award rendered by the arbitrators may be entered by any court
      having jurisdiction thereof. The place of arbitration shall be located within
      the State of New Jersey.

    

    The
      parties covenant and agree that the arbitration shall commence within sixty
      (60)
      days of the date on which a written demand for arbitration is filed by any
      party
      hereto. In connection with the arbitration proceeding, the arbitrator shall
      have
      the power to order the production of documents by each party and any third-party
      witnesses. In addition, each party may take up to three (3) depositions as
      of
      right, and the arbitrator may in his or her discretion allow additional
      depositions upon good cause shown by the moving party. However, the arbitrator
      shall not have the power to order the answering of interrogatories or the
      response to requests for admission. In connection with any arbitration, each
      party shall provide to the other, no later than seven (7) business days before
      the date of the arbitration, the identity of all persons that may testify at
      the
      arbitration and a copy of all documents that may be introduced at the
      arbitration or considered or used by a party¢s
      witness
      or expert. The arbitrator¢s
      decision and award shall be made and delivered within six (6) months of the
      selection of the arbitrator. The arbitrator¢s
      decision shall set forth a reasoned basis for any award of damages or finding
      of
      liability. The arbitrator shall not have power to award damages in excess of
      actual compensatory damages and shall not multiply actual damages or award
      punitive damages or any other damages that are specifically excluded under
      this
      Agreement, and each party hereby irrevocably waives any claim to such
      damages.

    

    The
      parties covenant and agree that they will participate in the arbitration in
      good
      faith. This Section 13(j) applies equally to requests for temporary, preliminary
      or permanent injunctive relief, except that in the case of temporary or
      preliminary injunctive relief any party may proceed in court without prior
      arbitration for the limited purpose of avoiding immediate and irreparable
      harm.

    

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

       

    

    Each
      of
      the parties hereto (i) hereby irrevocably submits to the jurisdiction of any
      United States District Court of competent jurisdiction for the purpose of
      enforcing the award or decision in any such proceeding, (ii) hereby waives,
      and
      agrees not to assert, by way of motion, as a defense, or otherwise, in any
      such
      suit, action or proceeding, any claim that it is not subject personally to
      the
      jurisdiction of the above-named courts, that its property is exempt or immune
      from attachment or execution (except as protected by applicable law), that
      the
      suit, action or proceeding is brought in an inconvenient forum, that the venue
      of the suit, action or proceeding is improper or that this Agreement or the
      subject matter hereof may not be enforced in or by such court, and hereby waives
      and agrees not to seek any review by any court of any other jurisdiction which
      may be called upon to grant an enforcement of the judgment of any such court.
      Each of the parties hereto hereby consents to service of process by registered
      mail at the address to which notices are to be given. Each of the parties hereto
      agrees that its, his or her submission to jurisdiction and its, his or her
      consent to service of process by mail is made for the express benefit of the
      other parties hereto. Final judgment against any party hereto in any such
      action, suit or proceeding may be enforced in other jurisdictions by suit,
      action or proceeding on the judgment, or in any other manner provided by or
      pursuant to the laws of such other jurisdiction.

    

    (k)  Counterparts.
      For the
      convenience of the parties and to facilitate execution, this Agreement may
      be
      executed in two or more counterparts, each of which shall be deemed an original,
      but all of which shall constitute one and the same document.

    

    [SIGNATURE
      PAGE FOLLOWS]

    

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    The
      foregoing Agreement is hereby accepted and the terms and conditions thereof
      hereby agreed to by the undersigned as of the date first above
      written.

     

    
      	 	 	 
	 	DOV
              PHARMACEUTICAL, INC.
	 
 	 
 	 
 
	 	By:  	/s/ J.
              Robert
              Horton
	 	
              
J.
              Robert Horton
	 	SVP
              and
              General Counsel
	 	 
	 	
              Address:

              433
                Hackensack Avenue

              Hackensack,
                NJ 07601 

            

    

     

    The
      foregoing Agreement is hereby accepted and the terms and conditions thereof
      hereby agreed to by the undersigned as of the date first above
      written.

    

    
      
        	 	 	 
	 	OPTIONEE
	 
 	 
 	 
 
	 	By:  	/s/ Scott
                Myers
	 	
                
Scott
                Myers
	 	 
	 	Grant Date: December 1, 2005 
	 	 
	 	
                Address:

                ________________________

                ________________________

                ________________________ 

              

      

    
      
        
        

      

      
        A-1

        
          

        

      

      
        
        

      

       

    

    [SPOUSE¢S
      CONSENT

    I
      acknowledge that I have read the

    foregoing
      Incentive Stock Option Agreement

    and
      understand the contents thereof.

    

    ____________________________________][A
      spouse’s consent is required only if the Optionee’s state of residence is one of
      the following community property states: Arizona, California, Idaho, Louisiana,
      New Mexico, Nevada, Texas, Washington and Wisconsin (check WI
      statute).]

    

    
      	 	 	 
	 	DESIGNATED
              BENEFICIARY:
	 
 	 
 	 
 
	 	  
                	 
	 	
              

            
	 	
              Beneficiary's
                Address:

              ________________________

              ________________________

              ________________________

            

    

     

    
      
        
        

      

      
        A-2

        
          

        

      

      
        
        

      

       

    

    Appendix
      A

    

    STOCK
      OPTION EXERCISE NOTICE

    

    

    DOV
      Pharmaceutical, Inc.

    Attention:
      Chief Financial Officer

    ____________________________

    ____________________________

    

    

    Pursuant
      to the terms of my stock option agreement dated __________ (the Agreement),
      I,
      _______________, hereby [Circle One] partially/fully exercise such option by
      including herein payment in the amount of $______ representing the purchase
      price for [Fill in number of Option Shares] _______ option shares. I have chosen
      the following form(s) of payment:

    

    [
      ] 1. Cash

    [
      ] 2. Certified
      or bank check payable to DOV Pharmaceutical, Inc.

    [
      ] 3. Other
      (as
      described in the Agreement (please describe)) 

      
      _____________________________________________________.

    

    Sincerely
      yours,

    

    

    ____________________________________

    Name:

    

    Address:

    _________________________________

    _________________________________

    _________________________________

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