Document:

Exhibit 10.20

                              EMPLOYMENT AGREEMENT

            AGREEMENT (the "Agreement"), dated as of April 9, 2004, by and
between NOVADEL PHARMA, INC., a [Delaware] corporation with principal executive
offices at 25 Minneakoning Road, Flemington, New Jersey 08822 (the "Company"),
and JEAN FRYDMAN, residing at 10 Old Fort Road, Bernardsville, NJ 07924 (the
"Executive").

                              W I T N E S S E T H :

            WHEREAS, the Company desires to employ the Executive as
Vice-President & Corporate General Counsel of the Company, and the Executive
desires to serve the Company in those capacities, upon the terms and subject to
the conditions contained in this Agreement;

            NOW, THEREFORE, in consideration of the mutual covenants and
agreements herein contained, the parties hereto hereby agree as follows:

     1. Employment.

     The Company agrees to employ the Executive, and the Executive agrees to be
employed by the Company, upon the terms and subject to the conditions of this
Agreement.

     2. Term.

     The employment of the Executive by the Company as provided in Section 1
shall be for a period of three (3) years commencing on May 17, 2004, unless
sooner terminated in accordance with the provisions of Section 9 below (the
"Term").

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     3. Duties; Best Efforts; Place of Performance.

     (a) The Executive shall serve as Vice-President & Corporate General Counsel
of the Company and shall perform, subject to the direction of the President &
Chief Executive Officer of the Company, such duties as are customarily performed
by the Vice-President & Corporate General Counsel. The Executive shall also have
such other powers and duties as may be from time to time prescribed by the
President & CEO of the Company, provided that the nature of the Executive's
powers and duties so prescribed shall not be inconsistent with the Executive's
position and duties hereunder.

     (b) The Executive shall devote all of her business time, attention and
energies to the business and affairs of the Company, shall use her best efforts
to advance the best interests of the Company and shall not during the Term be
actively engaged in any other business activity, whether or not such business
activity is pursued for gain, profit or other pecuniary advantage, that will
interfere with the performance by the Executive of her duties hereunder or the
Executive's availability to perform such duties or that will adversely affect,
or negatively reflect upon, the Company.

     (c) The duties to be performed by the Executive hereunder shall be
performed primarily at the office of the Company in Flemington, New Jersey,
subject to reasonable travel requirements on behalf of the Company.

     4. Compensation.

     As full compensation for the performance by the Executive of her duties
under this Agreement, the Company shall pay the Executive as follows:

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     (a) Base Salary. The Company shall pay the Executive a base salary (the
"Base Salary") at a rate of $200,000 per annum, payable in equal bi-weekly
installments during the Term.

     (b) Bonus. For the first year of Executive's employment, The Company shall
pay the Executive a cash bonus equal to 50% of expenditures saved for The
Company during that year on legal fees vs the previous one-year period. For the
second and subsequent years of Executive's employment, The Company shall pay the
Executive a bonus which is based upon the achievements of the Executive in
successfully negotiating and signing new business for the Company via Licensing
Agreements, such that for each Licensing Agreement negotiated and signed by the
Executive, she will be paid, as a percentage of her Base Salary, the greatest of
any one of the possibilities enumerated below:

i)Any deal closed and signed by the Executive                    5%

ii)If Licensing fees & milestone payments equal or
exceed $10 Million or if royalty stream equals or
exceeds 20% of net sales                                         10%

iii)If fees & milestones equal or exceed $30 Million
if royalty stream equals or exceeds 30% of net sales             20%

AND

v)If the  Executive  initiates the contact and closes the deal based upon that
contact, an additional 5% of Base Salary to any one of the above.

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The Bonus earned is to be paid in full in the calendar year in which the
Licensing Agreement is closed, provided that the Executive is employed hereunder
at the end of said year.

     (c) Withholding. The Company shall withhold all applicable federal, state
and local taxes and social security and such other amounts as may be required by
law from all amounts payable to the Executive under this Section 5.

     (d) Stock Options. Promptly after the date hereof, and as additional
compensation for the services to be rendered by the Executive pursuant to this
Agreement, the Company shall grant the Executive [non-qualified] stock options
("Stock Options") to purchase 100,000 shares of Common Stock of the Company
pursuant to the Company's [Name of Stock Option Plan]. Such stock options shall
vest ratably over a three-year period ending on the third anniversary of the
initial date of Executive's employment by NovaDel, so that 33,333 shares of the
Company's Common Stock will vest on each of May 17, 2005 and May 17, 2006, and
33,334 shares of the Company's Common Stock will vest on May 17, 2007, subject
to the provisions of Section 10 below. The exercise price of said 100,000 shares
shall be equal to 110% of the Fair Market Value (trading price) on the date of
the signing of this Employment Agreement. In connection with such grant, the
Executive shall enter into the Company's standard stock option agreement which
will incorporate the foregoing vesting schedule and the Stock Option related
provisions contained in Section 10 below. All Options will have a 10 year
expiration period, provided that this is pursuant to the Company's [Name of
Stock Option Plan].

     (e) Expenses. The Company shall reimburse the Executive for all normal,
usual and necessary expenses incurred by the Executive in furtherance of the
business and affairs of the Company, including reasonable travel and
entertainment, upon timely receipt by the Company of appropriate vouchers or
other proof of the Executive's expenditures and otherwise in accordance with any
expense reimbursement policy as may from time to time be adopted by the Company.

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     (f) Other Benefits. The Executive shall be entitled to all rights and
benefits for which she shall be eligible under any benefit or other plans
(including, without limitation, dental, medical, medical reimbursement and
hospital plans, pension plans, employee stock purchase plans, profit sharing
plans, bonus plans and other so-called "fringe" benefits) as the Company shall
make available to its senior executives from time to time.

     Vacation. The Executive shall, during the Term, be entitled to a vacation
of four (4) weeks per annum. The Executive shall not be entitled to carry any
vacation forward to the next year of employment and shall not receive any
compensation for unused vacation days.

     5. Confidential Information and Inventions

     (a) The Executive recognizes and acknowledges that in the course of her
duties she is likely to receive confidential or proprietary information owned by
the Company, its affiliates or third parties with whom the Company or any such
affiliates has an obligation of confidentiality. Accordingly, during and after
the Term, the Executive agrees to keep confidential and not disclose or make
accessible to any other person or use for any other purpose other than in
connection with the fulfillment of her duties under this Agreement, any
Confidential and Proprietary Information (as defined below) owned by, or
received by or on behalf of, the Company or any of its affiliates. "Confidential
and Proprietary Information" shall include, but shall not be limited to,
confidential or proprietary scientific or technical information, data, formulas
and related concepts, business plans (both current and under development),

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client lists, promotion and marketing programs, trade secrets, or any other
confidential or proprietary business information relating to development
programs, costs, revenues, marketing, investments, sales activities, promotions,
credit and financial data, manufacturing processes, financing methods, plans or
the business and affairs of the Company or of any affiliate or client of the
Company. The Executive expressly acknowledges the trade secret status of the
Confidential and Proprietary Information and that the Confidential and
Proprietary Information constitutes a protectable business interest of the
Company. The Executive agrees: (i) not to use any such Confidential and
Proprietary Information for herself or others; and (ii) not to take any Company
material or reproductions (including but not limited to writings,
correspondence, notes, drafts, records, invoices, technical and business
policies, computer programs or disks) thereof from the Company's offices at any
time during her employment by the Company, except as required in the execution
of the Executive's duties to the Company. The Executive agrees to return
immediately all Company material and reproductions (including but not limited,
to writings, correspondence, notes, drafts, records, invoices, technical and
business policies, computer programs or disks) thereof in her possession to the
Company upon request and in any event immediately upon termination of
employment.

     (b) Except with prior written authorization by the Company, the Executive
agrees not to disclose or publish any of the Confidential and Proprietary
Information, or any confidential, scientific, technical or business information
of any other party to whom the Company or any of its affiliates owes an
obligation of confidence, at any time during or after her employment with the
Company.

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     (c) The Executive agrees that all inventions, discoveries, improvements and
patentable or copyrightable works ("Inventions") initiated, conceived or made by
her, either alone or in conjunction with others, during the Term shall be the
sole property of the Company to the maximum extent permitted by applicable law
and, to the extent permitted by law, shall be "works made for hire" as that term
is defined in the United States Copyright Act (17 U.S.C.A., Section 101). The
Company shall be the sole owner of all patents, copyrights, trade secret rights,
and other intellectual property or other rights in connection therewith. The
Executive hereby assigns to the Company all right, title and interest she may
have or acquire in all such Inventions. The Executive further agrees to assist
the Company in every proper way (but at the Company's expense) to obtain and
from time to time enforce patents, copyrights or other rights on such Inventions
in any and all countries, and to that end the Executive will execute all
documents necessary:

          (i) to apply for, obtain and vest in the name of the Company alone
(unless the Company otherwise directs) letters patent, copyrights or other
analogous protection in any country throughout the world and when so obtained or
vested to renew and restore the same; and

          (ii) to defend any opposition proceedings in respect of such
applications and any opposition proceedings or petitions or applications for
revocation of such letters patent, copyright or other analogous protection.

     (d) The Executive acknowledges that while performing the services under
this Agreement the Executive may locate, identify and/or evaluate patented or
patentable inventions having commercial potential in the fields of pharmacy,
pharmaceutical, biotechnology, healthcare, technology and other fields which may
be of potential interest to the Company or one of its affiliates (the "Third
Party Inventions"). The Executive understands, acknowledges and agrees that all
rights to, interests in or opportunities regarding, all Third-Party Inventions
identified by the Company, any of its affiliates or either of the foregoing

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persons' officers, directors, employees (including the Executive), agents or
consultants during the Employment Term shall be and remain the sole and
exclusive property of the Company or such affiliate and the Executive shall have
no rights whatsoever to such Third-Party Inventions and will not pursue for
herself or for others any transaction relating to the Third-Party Inventions
which is not on behalf of the Company.

     (e) The provisions of this Section 6 shall survive any termination of this
Agreement.

     6. Non-Competition, Non-Solicitation and Non-Disparagement

     (a) The Executive understands and recognizes that her services to the
Company are special and unique and that in the course of performing such
services the Executive will have access to and knowledge of Confidential and
Proprietary Information (as defined in Section 6) and the Executive agrees that,
during the Term and for a period of [three (3)] years thereafter, she shall not
in any manner, directly or indirectly, on behalf of himself or any person, firm,
partnership, joint venture, corporation or other business entity ("Person"),
enter into or engage in any business which is engaged in any business
competitive with the business of the Company, either as an individual for her
own account, or as a partner, joint venturer, owner, executive, employee,
independent contractor, principal, agent, consultant, salesperson, officer,
director or shareholder of a Person in a business competitive with the Company
within the geographic area of the Company's business, which is deemed by the
parties hereto to be worldwide. The Executive acknowledges that, due to the
unique nature of the Company's business, the loss of any of its clients or
business flow or the improper use of its Confidential and Proprietary
Information could create significant instability and cause substantial damage to
the Company and its affiliates and therefore the Company has a strong legitimate

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business interest in protecting the continuity of its business interests and the
restriction herein agreed to by the Executive narrowly and fairly serves such an
important and critical business interest of the Company. For purposes of this
Agreement, the Company shall be deemed to be actively engaged on the date hereof
in the development of novel application drug delivery systems for presently
marketed prescription and over-the-counter drugs and providing consulting
services in connection therewith, and in the future in any other business in
which it actually devotes substantive resources to study, develop or pursue.
Notwithstanding the foregoing, nothing contained in this Section 7(a) shall be
deemed to prohibit the Executive from acquiring or holding, solely for
investment, publicly traded securities of any corporation, some or all of the
activities of which are competitive with the business of the Company so long as
such securities do not, in the aggregate, constitute more than five percent (5%)
of any class or series of outstanding securities of such corporation.

     (b) During the Term and for three (3) years thereafter, the Executive shall
not, directly or indirectly, without the prior written consent of the Company:

          (i) solicit or induce any employee of the Company or any of its
affiliates to leave the employ of the Company or any such affiliate; or hire for
any purpose any employee of the Company or any affiliate or any employee who has
left the employment of the Company or any affiliate within one year of the
termination of such employee's employment with the Company or any such affiliate
or at any time in violation of such employee's non-competition agreement with
the Company or any such affiliate; or

          (ii) solicit or accept employment or be retained by any Person who, at
any time during the term of this Agreement, was an agent, client or customer of
the Company or any of its affiliates where her position will be related to the
business of the Company or any such affiliate; or

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          (iii) solicit or accept the business of any agent, client or customer
of the Company or any of its affiliates with respect to products, services or
investments similar to those provided or supplied by the Company or any of its
affiliates.

     (c) The Executive agrees that both during the Term and at all times
thereafter, she shall not directly or indirectly disparage, whether or not true,
the name or reputation of the Company or any of its affiliates, including but
not limited to, any officer, director, employee or shareholder of the Company or
any of its affiliates.

     (d) In the event that the Executive breaches any provisions of Section 6 or
this Section 7 or there is a threatened breach, then, in addition to any other
rights which the Company may have, the Company shall (i) be entitled, without
the posting of a bond or other security, to injunctive relief to enforce the
restrictions contained in such Sections and (ii) have the right to require the
Executive to account for and pay over to the Company all compensation, profits,
monies, accruals, increments and other benefits (collectively "Benefits")
derived or received by the Executive as a result of any transaction constituting
a breach of any of the provisions of Sections 6 or 7 and the Executive hereby
agrees to account for and pay over such Benefits to the Company.

     (e) Each of the rights and remedies enumerated in Section 7(d) shall be
independent of the others and shall be in addition to and not in lieu of any
other rights and remedies available to the Company at law or in equity. If any
of the covenants contained in this Section 7, or any part of any of them, is
hereafter construed or adjudicated to be invalid or unenforceable, the same
shall not affect the remainder of the covenant or covenants or rights or
remedies which shall be given full effect without regard to the invalid

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portions. If any of the covenants contained in this Section 7 is held to be
invalid or unenforceable because of the duration of such provision or the area
covered thereby, the parties agree that the court making such determination
shall have the power to reduce the duration and/or area of such provision and in
its reduced form such provision shall then be enforceable. No such holding of
invalidity or unenforceability in one jurisdiction shall bar or in any way
affect the Company's right to the relief provided in this Section 7 or otherwise
in the courts of any other state or jurisdiction within the geographical scope
of such covenants as to breaches of such covenants in such other respective
states or jurisdictions, such covenants being, for this purpose, severable into
diverse and independent covenants.

     (f) In the event that an actual proceeding is brought in equity to enforce
the provisions of Section 6 or this Section 7, the Executive shall not urge as a
defense that there is an adequate remedy at law nor shall the Company be
prevented from seeking any other remedies which may be available. The Executive
agrees that she shall not raise in any proceeding brought to enforce the
provisions of Section 6 or this Section 7 that the covenants contained in such
Sections limit her ability to earn a living.

     (g) The provisions of this Section 7 shall survive any termination of this
Agreement.

     7.   Representations and Warranties by the Executive

     The Executive hereby represents and warrants to the Company as follows:

          (i) Neither the execution or delivery of this Agreement nor the
performance by the Executive of her duties and other obligations hereunder
violate or will violate any statute, law, determination or award, or conflict
with or constitute a default or breach of any covenant or obligation under
(whether immediately, upon the giving of notice or lapse of time or both) any
prior employment agreement, contract, or other instrument to which the Executive
is a party or by which she is bound.

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     (ii) The Executive has the full right, power and legal capacity to enter
and deliver this Agreement and to perform her duties and other obligations
hereunder. This Agreement constitutes the legal, valid and binding obligation of
the Executive enforceable against her in accordance with its terms. No approvals
or consents of any persons or entities are required for the Executive to execute
and deliver this Agreement or perform her duties and other obligations
hereunder.

     8. Termination. The Executive's employment hereunder shall be terminated
upon the Executive's death and may be terminated as follows:

     (a) The Executive's employment hereunder may be terminated by the Company
for Cause. Any of the following actions by the Executive shall constitute
"Cause":

          (i) The willful failure, neglect or refusal by the Executive to
perform her duties hereunder;

          (ii) Any willful, intentional or grossly negligent act by the
Executive having the effect of injuring, in a material way (whether financial or
otherwise and as determined in good-faith by the President of the Company), the
business or reputation of the Company or any of its affiliates, including but
not limited to, any officer, director, executive or shareholder of the Company
or any of its affiliates;

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          (iii) Willful misconduct by the Executive, including insubordination,
in respect of the duties or obligations of the Executive under this Agreement;

          (iv) The Executive's indictment of any felony or a misdemeanor
involving moral turpitude (including entry of a nolo contendere plea);

          (v) The determination by the Company, after a reasonable and
good-faith investigation by the Company following a written allegation by
another employee of the Company, that the Executive engaged in some form of
harassment protected by law (including, without limitation, age, sex or race
discrimination);

          (vi) Any misappropriation or embezzlement of the property of the
Company or its affiliates (whether or not a misdemeanor or felony);

          (vii) Breach by the Executive of any of the provisions of Section 5 or
Section 6 of this Agreement; and

          (viii) Breach by the Executive of any provision of this Agreement
other than those contained in Section 5 or Section 6 which is not cured by the
Executive within thirty (30) days after notice thereof is given to the Executive
by the Company.

     (b) The Executive's employment hereunder may be terminated by the Company
due to the Executive's Disability. For purposes of this Agreement, a termination
for "Disability" shall occur (i) when the Company has provided a written
termination notice to the Executive supported by a written statement from a
reputable independent physician to the effect that the Executive shall have
become so physically or mentally incapacitated as to be unable to resume, within
the ensuing twelve (12) months, her employment hereunder by reason of physical
or mental illness or injury, or (ii) upon rendering of a written termination
notice by the Company after the Executive has been unable to substantially
perform her duties hereunder for 90 or more consecutive days, or more than 120
days in any consecutive twelve month period, by reason of any physical or mental
illness or injury. For purposes of this Section 9(b), the Executive agrees to
make herself available and to cooperate in any reasonable examination by a
reputable independent physician retained by the Company.

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     (c) The Executive's employment hereunder may be terminated by the Executive
for Good Reason. For purposes of this Agreement, "Good Reason" means a breach by
the Company of its material obligations under Section 5 of this Agreement which
is not cured by the Company within thirty (30) days after notice thereof is
given by the Executive to the Company.

     (d) The Executive's employment hereunder may be terminated by the Company
(or its successor) upon the occurrence of a Change of Control. For purposes of
this Agreement, "Change of Control" means (i) the acquisition, directly or
indirectly, following the date hereof by any person (as such term is defined in
Section 13(d) and 14(d)(2) of the Securities Exchange Act of 1934, as amended),
in one transaction or a series of related transactions, of securities of the
Company representing in excess of fifty percent (50%) or more of the combined
voting power of the Company's then outstanding securities if such person or her
or its affiliate(s) do not own in excess of 50% of such voting power on the date
of this Agreement, or (ii) the future disposition by the Company (whether direct
or indirect, by sale of assets or stock, merger, consolidation or otherwise) of
all or substantially all of its business and/or assets in one transaction or
series of related transactions (other than a merger effected exclusively for the
purpose of changing the domicile of the Company).

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     9. Compensation upon Termination.

     (a) If the Executive's employment is terminated as a result of her death,
the Company shall (i) pay to the Executive's estate her Base Salary and any
accrued and unpaid Bonus and expense reimbursement amounts through the date of
her death and (ii) for the shorter of six (6) months following her death or the
balance of the Term (as if such termination had not occurred) provide
continuation coverage to the members of the Executive's family under all major
medical and other health, accident, life or other disability plans and programs
in which such family members participated immediately prior to her death. Any
Stock Options that have not vested as of the date of the Executive's death shall
be deemed to have expired as of such date.

     (b) If the Executive's employment is terminated by the Company due to
Disability, the Company shall pay to the Executive her Base Salary and any
accrued Bonus and expense reimbursement amounts through the date of her
termination. In addition, for the shorter of six (6) months following any such
termination or the balance of the Term (as if such termination had not
occurred), the Company shall (i) continue to pay the Executive the Base Salary
in effect at the time of such termination less the amount, if any, then payable
to the Executive under any disability benefits of the Company and (ii) provide
the Executive continuation coverage under all major medical and other health,
accident, life or other disability plans and programs in which the Executive
participated immediately prior to such termination. All Stock Options that have
not vested as of the date of termination due to the Executive's Disability shall
be deemed to have expired as of such date.

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     (c) If the Executive's employment is terminated by the Company for Cause or
by the Executive other than for Good Reason, the Company shall pay to the
Executive her Base Salary through the date of her termination and the Executive
shall have no further entitlement to any other compensation or benefits from the
Company. All Stock Options that have not vested as of the date of any such
termination shall be deemed to have expired as of such date and, in addition,
the Executive's right to exercise any vested Stock Options shall terminate as of
such date.

     (d) If the Executive's employment is terminated by the Company (or its
successor) upon the occurrence of a Change of Control, the Company (or its
successor, as applicable) shall (i) continue to pay to the Executive her Base
Salary for a period of one (1) year following such termination, and (ii) pay the
Executive any accrued and unpaid Bonus and expense reimbursement amounts through
the date of termination. The Company's obligation under clause (i) in the
preceding sentence shall be reduced, however, by any amounts otherwise actually
earned by the Executive during the one year period following the termination of
her employment. All Stock Options that have not vested as of the date of such
termination shall be accelerated and deemed to have vested as of such date.

     (e) If (i) the Executive's employment is terminated by the Company other
than as a result of the Executive's death and other than for reasons specified
in Sections 10(b), (c) or (d), or (ii) the Executive's employment is terminated
by the Executive for Good Reason, the Company shall continue to pay to the
Executive her Base Salary for a period of six (6) months following such
termination and the Company shall pay the Executive any accrued and unpaid Bonus
and expense reimbursement amounts through the date of termination. The Company's
obligation under clause (i) in the preceding sentence shall be reduced, however,
by any amounts otherwise actually earned by the Executive during the six month
period following the termination of her employment. In addition, for the shorter
of six (6) months following any such termination or the balance of the Term (as
if such termination had not occurred), the Company shall provide the Executive
continuation coverage under all major medical and other health, accident, life
or other disability plans or programs in which the Executive participated
immediately prior to such termination. All Stock Options that have not vested as
of the date of termination shall be deemed to have expired as of such date.

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     (f) The continuation coverage under any major medical and other health,
accident, life or other disability plans and programs for the periods provided
in Section [10(a), 10(b) and 10(e)] shall be provided (i) at the expense of the
Company and (ii) in satisfaction of the Company's obligation under Section 4980B
of the Internal Revenue Code of 1986 (and any similar state law) with respect to
the period of time such benefits are continued hereunder. Notwithstanding
anything to the contrary contained herein, the Company's obligation to provide
such continuation coverage under such Sections shall cease immediately upon the
date any covered individual becomes eligible for similar benefits under the
plans or policies of another employer.

     (g) This Section 10 sets forth the only obligations of the Company with
respect to the termination of the Executive's employment with the Company, and
the Executive acknowledges that, upon the termination of her employment, she
shall not be entitled to any payments or benefits which are not explicitly
provided in Section 10.

     (h) Upon termination of the Executive's employment hereunder for any
reason, the Executive shall be deemed to have resigned as director of the
Company, effective as of the date of such termination.

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     (i) The provisions of this Section 10 shall survive any termination of this
Agreement.

     10. Miscellaneous.

     (a) This Agreement shall be governed by, and construed and interpreted in
accordance with, the laws of the State of New Jersey, without giving effect to
its principles of conflicts of laws.

     (b) Any dispute arising out of, or relating to, this Agreement or the
breach thereof (other than Sections 6 or 7 hereof), or regarding the
interpretation thereof, shall be finally settled by arbitration conducted in New
Jersey in accordance with the rules of the American Arbitration Association then
in effect before a single arbitrator appointed in accordance with such rules.
Judgment upon any award rendered therein may be entered and enforcement obtained
thereon in any court having jurisdiction. The arbitrator shall have authority to
grant any form of appropriate relief, whether legal or equitable in nature,
including specific performance. For the purpose of any judicial proceeding to
enforce such award or incidental to such arbitration or to compel arbitration
and for purposes of Sections 6 and 7 hereof, the parties hereby submit to the
non-exclusive jurisdiction of the Supreme Court of the State of New Jersey,
Hunterdon County, or the United States District Court for the District of New
Jersey, and agree that service of process in such arbitration or court
proceedings shall be satisfactorily made upon it if sent by registered mail
addressed to it at the address referred to in paragraph (g) below.

     (c) This Agreement shall be binding upon and inure to the benefit of the
parties hereto, and their respective heirs, legal representatives, successors
and assigns.

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     (d) This Agreement, and the Executive's rights and obligations hereunder,
may not be assigned by the Executive. The Company may assign its rights,
together with its obligations, hereunder in connection with any sale, transfer
or other disposition of all or substantially all of its business or assets.

     (e) This Agreement cannot be amended orally, or by any course of conduct or
dealing, but only by a written agreement signed by the parties hereto.

     (f) The failure of either party to insist upon the strict performance of
any of the terms, conditions and provisions of this Agreement shall not be
construed as a waiver or relinquishment of future compliance therewith, and such
terms, conditions and provisions shall remain in full force and effect. No
waiver of any term or condition of this Agreement on the part of either party
shall be effective for any purpose whatsoever unless such waiver is in writing
and signed by such party.

     (g) All notices, requests, consents and other communications, required or
permitted to be given hereunder, shall be in writing and shall be delivered
personally or by an overnight courier service or sent by registered or certified
mail, postage prepaid, return receipt requested, to the parties at the addresses
set forth on the first page of this Agreement, and shall be deemed given when so
delivered personally or by overnight courier, or, if mailed, five days after the
date of deposit in the United States mails. Either party may designate another
address, for receipt of notices hereunder by giving notice to the other party in
accordance with this paragraph (g).

     (h) This Agreement sets forth the entire agreement and understanding of the
parties relating to the subject matter hereof, and supersedes all prior
agreements, arrangements and understandings, written or oral, relating to the
subject matter hereof. No representation, promise or inducement has been made by
either party that is not embodied in this Agreement, and neither party shall be
bound by or liable for any alleged representation, promise or inducement not so
set forth.

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     (i) As used in this Agreement, "affiliate" of a specified Person shall mean
and include any Person controlling, controlled by or under common control with
the specified Person.

     (j) The section headings contained herein are for reference purposes only
and shall not in any way affect the meaning or interpretation of this Agreement.

     (k) This Agreement may be executed in any number of counterparts, each of
which shall constitute an original, but all of which together shall constitute
one and the same instrument.

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of
the date first above written.

By:   /s/ Gary A. Shangold, M.D.
      ------------------------------
      Gary A. Shangold, M.D.
      President & CEO
      NovaDel Pharma Inc.

Date: April 9, 2004

By:   /s/ Jean Frydman, J.D.
      ------------------------------
      Jean Frydman, J.D.

Date: April 19, 2004

                                      -20-Exhibit 10.4

                          AMERICAN FEDERAL SAVINGS BANK
                                SPLIT-DOLLAR PLAN

Pursuant to due authorization by its Board of Directors, the undersigned,
AMERICAN FEDERAL SAVINGS BANK, a corporation located in Helena, Montana (the
"Company"), did constitute, establish and adopt the following Split-Dollar Plan
(the "Plan"), effective October 21, 2004.

The purpose of this Plan is to attract, retain, and reward Employees, by
dividing the death proceeds of certain life insurance policies which are owned
by the Company on the lives of the participating Employees with the designated
beneficiary of each insured participating Employee. The Company will pay the
life insurance premiums from its general assets.

                                    ARTICLE 1
                                   DEFINITIONS

         Whenever used in this Plan, the following terms shall have the meanings
         specified:

1.1      "Beneficiary" means each designated person, or the estate of a deceased
         Participant, entitled to benefits, if any, upon the death of a
         Participant.

1.2      "Beneficiary Designation Form" means the form established from time to
         time by the Plan Administrator that a Participant completes, signs and
         returns to the Plan Administrator to designate one or more
         Beneficiaries.

1.3      "Board" means the Board of Directors of the Company as from time to
         time constituted.

1.4      "Company" means AMERICAN FEDERAL SAVINGS BANK and any of its
         subsidiaries (now in existence or hereafter formed or acquired) that
         have been selected by the Board to participate in the Plan and have
         adopted the Plan as a sponsor.

1.5      "Disability" means the Participant's suffering a sickness, accident or
         injury which has been determined by the insurance carrier of any
         individual or group disability insurance policy covering the
         Participant, or by the Social Security Administration, to be a
         disability rendering the Participant totally and permanently disabled.
         Upon the request of the Plan Administrator, the Participant must submit
         proof to the Plan Administrator of the insurance carrier's or Social
         Security Administration's determination.

1.6      "Company's Interest" means the benefit set forth in Section 3.2.

1.7      "Election to Participate" means the form required by the Plan
         Administrator of an eligible Employee to indicate acceptance of
         participation in this Plan.

1.8      "Employee" means an active employee of the Company who has the title of
         Vice President or greater.

1.9      "Insured" means the individual Participant whose life is insured.

                                      -23-

<PAGE>

1.10     "Insurer" means the insurance company issuing the Policy on the life of
         the Insured.

1.11     "Net Death Proceeds" means the total death proceeds of the Policy minus
         the cash surrender value.

1.12     "Normal Retirement Age" means the Participant attaining age sixty-two
         (62).

1.13     "Normal Retirement Date" means the later of the Normal Retirement Age
         or the date of Termination of Employment for any reason other than
         Termination for Cause.

1.14     "Participant" means an Employee (i) who is selected to participate in
         the Plan, (ii) who elects to participate in the Plan, (iii) who signs
         an Election to Participate and a Beneficiary Designation Form, (iv)
         whose signed Election to Participant and Beneficiary Designation Form
         are accepted by the Plan Administrator, (v) who commences participation
         in the Plan, and (vi) whose Participation has not terminated.

1.15     "Participant's Interest" means the benefit set forth in Section 3.1.

1.16     "Policy" means the individual insurance policy or policies adopted by
         the Plan Administrator for purposes of insuring a Participant's life
         under this Plan.

1.17     "Plan Administrator" means the plan administrator described in
         Article 10.

1.18     "Quarterly Plan Entry Date" means January 1st, April 1st, July 1st or
         October 1st.

1.19     "Termination for Cause" means that the Participant's employment with
         the Company has been or is terminated by the Board for any of the
         following reasons:

        (a)    Gross negligence or gross neglect of duties; or

        (b)    Commission of a felony or of a gross misdemeanor involving
               moral turpitude; or

        (c)    Fraud, disloyalty, dishonesty or willful violation of any law
               or significant Company policy committed in connection with the
               Participant's employment and resulting in an adverse effect on
               the Company; or

        (d)    Issuance by the Company's banking regulators of an order for
               removal of the Participant.

1.20     "Termination of Employment" means the termination of Participant's
         service before Normal Retirement Age for reasons other than (i) death;
         (ii) Disability; or (iii) a leave of absence approved by the Company.

                                      -24-

<PAGE>

1.21     "Year of Service" means the twelve consecutive month period beginning
         on a Participant's date of hire and any twelve (12) month anniversary
         hereof, during the entirety of which time the Participant is an
         employee of the Company. Service with a subsidiary or other entity
         controlled by the Company before the time such entity became a
         subsidiary or under such control shall not be considered "credited
         service", unless the Plan Administrator specifically agrees to credit
         such service. In addition, the Plan Administrator in its sole
         discretion may also grant additional Years of Service in such
         circumstances where it deems such additional service appropriate.

                                    ARTICLE 2
                                  PARTICIPATION

2.1      Eligibility.  An Employee who has completed one (1) year of service
         shall automatically be eligible for participation in the Plan.

2.2      Enrollment Requirements. As a condition to participation, each selected
         Employee shall complete, execute and return to the Plan Administrator
         (i) an Election to Participate, and (ii) a Beneficiary Designation
         Form. In addition, the Plan Administrator shall establish from time to
         time such other enrollment requirements as it determines in its sole
         discretion are necessary.

2.3      Eligibility; Commencement of Participation. Provided an Employee
         selected to participate in the Plan has met all enrollment requirements
         set forth in this Plan and required by the Plan Administrator, that
         Employee will become a Participant beginning on the next Quarterly Plan
         Entry Date following one (1) Year of Service, be covered by the Plan
         and will be eligible to receive benefits at the time and in the manner
         provided hereunder, subject to the provisions of the Plan.

2.4      Termination of Participation. A Participant's rights under this Plan
         shall automatically cease and his or her participation in this Plan
         shall automatically terminate, if either of the following events occur:
         (i) if there is a Termination for Cause; or (ii) if the Participant's
         employment with the Company is terminated prior to Normal Retirement
         Age for reasons other than Disability (except as set forth in Section
         2.5(b)) or a leave of absence approved by the Company. In the event
         that the Company decides to maintain the Policy after the Participant's
         termination of participation in the Plan, the Company shall be the
         direct beneficiary of the entire death proceeds of the Policy.

2.5      Disability.

         (a)  Except as otherwise provided in paragraph (b) of this Section
              2.5, if the Participant's employment with the Company is
              terminated because of the Participant's Disability, the
              Company shall maintain the Policy in full force and effect
              and, in no event, shall the Company amend, terminate or
              otherwise abrogate the Participant's Interest in the Policy.
              However, the Company may replace the Policy with a comparable
              insurance policy to cover the benefit provided under this
              Plan.

                                      -25-

<PAGE>

         (b)  Notwithstanding the provisions of paragraph (a) of this
              Section 2.5, upon the disabled Participant's gainful
              employment with an entity other than the Company, the Company
              shall have no further obligation to the disabled Participant,
              and the disabled Participant's rights pursuant to the Plan
              shall cease. In the event the disabled Participant's rights
              are terminated hereunder and the Company decides to maintain
              the Policy, the Company shall be the direct beneficiary of the
              entire death proceeds of the Policy.

2.6      Retirement. If the Participant remains in the continuous employ of the
         Company, upon the Participant's Normal Retirement Date, the Company
         shall maintain the Policy in full force and effect and in no event
         shall the Company amend, terminate or otherwise abrogate the
         Participant's Interest in the Policy. However, the Company may replace
         the Policy with a comparable insurance policy to cover the benefit
         under this Plan.

                                    ARTICLE 3
                           POLICY OWNERSHIP/INTERESTS

3.1      Participant's  Interest.  The  Participant,  or the  Participant's
         assignee,  shall  have  the  right  to designate the Beneficiary of
         death proceeds equal to the amount  indicated on the  participant's
         Election to Participate, subject to:

         (a)  Forfeiture of Participant's rights upon Termination of Employment
              prior to Normal Retirement Age;

         (b)  Forfeiture of Participant's rights upon Termination for Cause;

         (c)  Forfeiture of Participant's rights upon gainful employment
              following Disability.

         (d)  Termination of the Plan and the corresponding forfeiture of
              rights for all Participants or any one Participant in accordance
              with Section 9.1 hereof; and

         (e)  Forfeiture of the Participant's rights and interest hereunder
              that the Company may reasonably consider necessary to conform
              with applicable law (including the Sarbanes-Oxley Act of 2002).

3.2      Company's Interest. The Company shall own the Policy and shall have the
         right to exercise all incidents of ownership except that the Company
         shall not sell, surrender or transfer ownership of a Policy so long as
         a Participant has an interest in the Policy as described in Section
         3.1. This provision shall not impair the right of the Company, subject
         to Article 9, to terminate this Plan. With respect to each Policy, the
         Company shall be the beneficiary of the remaining death proceeds of the
         Policy after the Participant's Interest is determined according to
         Section 3.1.

                                    ARTICLE 4
                                    PREMIUMS

4.1      Premium Payment.  The Company shall pay all premiums due on all
         Policies.
                                      -26-

<PAGE>

4.2      Economic Benefit. The Plan Administrator shall determine the economic
         benefit attributable to any Participant based on the amount of the
         current term rate for the Participant's age multiplied by the aggregate
         death benefit payable to the Participant's Beneficiary. The "current
         term rate" is the minimum amount required to be imputed under Treasury
         Regulation Section 1.61-22(d)(3)(ii), or any subsequent applicable
         authority.

4.3      Imputed Income. The Company shall impute the economic benefit to the
         Participant on an annual basis, by adding the economic benefit to the
         Participant's W-2, or if applicable, Form 1099.

                                    ARTICLE 5
                                  BENEFICIARIES

5.1      Beneficiary. Each Participant shall have the right, at any time, to
         designate a Beneficiary(ies) to receive any benefits payable under the
         Plan to a beneficiary upon the death of a Participant. The Beneficiary
         designated under this Plan may be the same as or different from the
         Beneficiary designation under any other plan of the Company in which
         the Participant participates.

5.2      Beneficiary Designation; Change. A Participant shall designate a
         Beneficiary by completing and signing the Beneficiary Designation Form,
         and delivering it to the Plan Administrator or its designated agent.
         The Participant's beneficiary designation shall be deemed automatically
         revoked if the Beneficiary predeceases the Participant or if the
         Participant names a spouse as Beneficiary and the marriage is
         subsequently dissolved. A Participant shall have the right to change a
         Beneficiary by completing, signing and otherwise complying with the
         terms of the Beneficiary Designation Form and the Plan Administrator's
         rules and procedures, as in effect from time to time. Upon the
         acceptance by the Plan Administrator of a new Beneficiary Designation
         Form, all Beneficiary designations previously filed shall be cancelled.
         The Plan Administrator shall be entitled to rely on the last
         Beneficiary Designation Form filed by the Participant and accepted by
         the Plan Administrator prior to the Participant's death.

5.3      Acknowledgment. No designation or change in designation of a
         Beneficiary shall be effective until received, accepted and
         acknowledged in writing by the Plan Administrator or its designated
         agent.

5.4      No Beneficiary Designation. If the Participant dies without a valid
         designation of beneficiary, or if all designated Beneficiaries
         predecease the Participant, then the Participant's surviving spouse
         shall be the designated Beneficiary. If the Participant has no
         surviving spouse, the benefits shall be made payable to the personal
         representative of the Participant's estate.

                                      -27-

<PAGE>

5.5      Facility of Payment. If the Plan Administrator determines in its
         discretion that a benefit is to be paid to a minor, to a person
         declared incompetent, or to a person incapable of handling the
         disposition of that person's property, the Plan Administrator may
         direct payment of such benefit to the guardian, legal representative or
         person having the care or custody of such minor, incompetent person or
         incapable person. The Plan Administrator may require proof of
         incompetence, minority or guardianship as it may deem appropriate prior
         to distribution of the benefit. Any payment of a benefit shall be a
         payment for the account of the Participant and the Participant's
         Beneficiary, as the case may be, and shall be a complete discharge of
         any liability under the Plan for such payment amount.

                                    ARTICLE 6
                                   ASSIGNMENT

Any Participant may irrevocably assign without consideration all of such
Participant's Interest in this Plan to any person, entity or trust. In the event
a Participant shall transfer all of such Participant's Interest, then all of
that Participant's Interest in this Plan shall be vested in his or her
transferee, who shall be substituted as a party hereunder, and that Participant
shall have no further interest in this Plan.

                                    ARTICLE 7
                                     INSURER

The Insurer shall be bound only by the terms of its given Policy. Any payments
the Insurer makes or actions it takes in accordance with a Policy shall fully
discharge it from all claims, suits and demands of all persons relating to that
Policy. The Insurer shall not be bound by or deemed to have notice of the
provisions of this Plan. The Insurer shall have the right to rely on the Plan
Administrator's representations with regard to any definitions, interpretations
or Policy interests as specified under this Plan.

                                    ARTICLE 8
                           CLAIMS AND REVIEW PROCEDURE

8.1      Claims  Procedure.  A Participant  or  Beneficiary  ("claimant")  who
         has not received  benefits under the Plan that he or she believes
         should be paid shall make a claim for such benefits as follows:

         8.1.1    Initiation  -  Written  Claim.  The  claimant  initiates  a
                  claim  by  submitting  to  the  Plan Administrator a written
                  claim for the benefits.

         8.1.2    Timing of Plan Administrator Response. The Plan Administrator
                  shall respond to such claimant within 90 days after receiving
                  the claim. If the Plan Administrator determines that special
                  circumstances require additional time for processing the
                  claim, the Plan Administrator can extend the response period
                  by an additional 90 days by notifying the claimant in writing,
                  prior to the end of the initial 90-day period, that an
                  additional period is required. The notice of extension must
                  set forth the special circumstances and the date by which the
                  Plan Administrator expects to render its decision.

                                      -28-

<PAGE>

8.1.3             Notice of Decision. If the Plan Administrator denies part or
                  all of the claim, the Plan Administrator shall notify the
                  claimant in writing of such denial. The Plan Administrator
                  shall write the notification in a manner calculated to be
                  understood by the claimant. The notification shall set forth:

                  (a)  The specific reasons for the denial;

                  (b)  A reference to the specific provisions of the Plan on
                       which the denial is based;

                  (c)  A description of any additional information or material
                       necessary for the claimant to perfect the claim and an
                       explanation of why it is needed;

                  (d)  An explanation of the Plan's review procedures and the
                       time limits applicable to such procedures; and

                  (e)  A statement of the claimant's right to bring a civil
                       action under ERISA Section 502(a) following an adverse
                       benefit determination on review.

8.2   Review Procedure. If the Plan Administrator denies part or all of the
      claim, the claimant shall have the opportunity for a full and fair review
      by the Plan Administrator of the denial, as follows:

         8.2.1    Initiation - Written Request. To initiate the review, the
                  claimant, within 60 days after receiving the Plan
                  Administrator's notice of denial, must file with the Plan
                  Administrator a written request for review.

         8.2.2    Additional Submissions - Information Access. The claimant
                  shall then have the opportunity to submit written comments,
                  documents, records and other information relating to the
                  claim. The Plan Administrator shall also provide the claimant,
                  upon request and free of charge, reasonable access to, and
                  copies of, all documents, records and other information
                  relevant (as defined in applicable ERISA regulations) to the
                  claimant's claim for benefits.

         8.2.3    Considerations on Review. In considering the review, the Plan
                  Administrator shall take into account all materials and
                  information the claimant submits relating to the claim,
                  without regard to whether such information was submitted or
                  considered in the initial benefit determination.

         8.2.4    Timing of Plan Administrator's Response. The Plan
                  Administrator shall respond in writing to such claimant within
                  60 days after receiving the request for review. If the Plan
                  Administrator determines that special circumstances require
                  additional time for processing the claim, the Plan
                  Administrator can extend the response period by an additional
                  60 days by notifying the claimant in writing, prior to the end
                  of the initial 60-day period, that an additional period is
                  required. The notice of extension must set forth the special
                  circumstances and the date by which the Plan Administrator
                  expects to render its decision.

                                      -29-

<PAGE>

8.2.5             Notice of Decision. The Plan Administrator shall notify the
                  claimant in writing of its decision on review. The Plan
                  Administrator shall write the notification in a manner
                  calculated to be understood by the claimant. The notification
                  shall set forth:

                  (a)  The specific reasons for the denial;

                  (b)  A reference to the specific provisions of the Plan on
                       which the denial is based;

                  (c)  A statement that the claimant is entitled to receive,
                       upon request and free of charge, reasonable access to,
                       and copies of, all documents, records and other
                       information relevant (as defined in applicable ERISA
                       regulations) to the claimant's claim for benefits; and

                  (d)  A statement of the claimant's right to bring a civil
                       action under ERISA Section 502(a).

                                    ARTICLE 9
                           AMENDMENTS AND TERMINATION

9.1      Amendment or Termination of Plan. Except as otherwise provided in
         Sections 2.5 and 2.6, or as otherwise agreed to in writing, the Company
         may amend or terminate this Plan for all Participants or for any
         Participant at any time prior to a Participant's death. Such amendment
         or termination shall be by written notice to the Participant(s). In the
         event that the Company decides to maintain the Policy after the
         Participant's termination of participation in the Plan, the Company
         shall be the direct beneficiary of the entire death proceeds of the
         Policy.

9.2      Option to Purchase Upon Termination. If the Company exercises the right
         to terminate the Plan or a Participant's participation in the Plan, the
         Company shall not sell, surrender or transfer ownership of a Policy
         without first giving a Participant or the Participant's transferee the
         option to purchase the Policy for a period of sixty (60) days from
         written notice of such intention. The purchase price shall be an amount
         equal to the fair market value of the Policy as determined under
         Treasury Regulation Section 1.61-22(g)(2).

9.3      Waiver of Participation. A Participant may, in the Participant's sole
         and absolute discretion, waive his or her rights under the Plan at any
         time. Any waiver permitted under this Section 9.3 shall be in writing
         and delivered to the Plan Administrator.

                                   ARTICLE 10
                                 ADMINISTRATION

10.1     Plan Administrator Duties. This Plan shall be administered by a Plan
         Administrator which shall consist of the Board, or such committee or
         persons as the Board may choose. Members of the Plan Administrator may
         be Participants under this Plan. The Plan Administrator shall also have
         the discretion and authority to (i) make, amend, interpret and enforce
         all appropriate rules and regulations for the administration of this
         Plan and (ii) decide or resolve any and all questions including
         interpretations of this Plan, as may arise in connection with the Plan.

                                      -30-

<PAGE>

10.2     Agents. In the administration of this Plan, the Plan Administrator may
         employ agents and delegate to them such administrative duties as it
         sees fit, (including acting through a duly appointed representative),
         and may from time to time consult with counsel who may be counsel to
         the Company.

10.3     Binding Effect of Decisions. The decision or action of the Plan
         Administrator with respect to any question arising out of or in
         connection with the administration, interpretation and application of
         the Plan and the rules and regulations promulgated hereunder shall be
         final and conclusive and binding upon all persons having any interest
         in the Plan.

10.4     Indemnity of Plan Administrator. The Company shall indemnify and hold
         harmless the members of the Plan Administrator against any and all
         claims, losses, damages, expenses or liabilities arising from any
         action or failure to act with respect to this Plan, except in the case
         of willful misconduct by the Plan Administrator or any of its members.

10.5     Information. To enable the Plan Administrator to perform its functions,
         the Company shall supply full and timely information to the Plan
         Administrator on all matters relating to the Compensation of its
         Participants, the date and circumstances of the retirement, Disability,
         death or Termination of Employment of its Participants, and such other
         pertinent information as the Plan Administrator may reasonably require.

                                   ARTICLE 11
                                  MISCELLANEOUS

11.1     Binding Effect.  This Plan shall bind each Participant and the Company,
         their  beneficiaries,  survivors, executors, administrators and
         transferees and any Beneficiary.

11.2     No Guarantee of Employment. This Plan is not an employment policy or
         contract. It does not give a Participant the right to remain an
         Employee of the Company, nor does it interfere with the Company's right
         to discharge a Participant. It also does not require a Participant to
         remain an Employee nor interfere with a Participant's right to
         terminate employment at any time.

11.3     Applicable Law. The Plan and all rights hereunder shall be governed by
         and construed according to the laws of the State of MONTANA, except to
         the extent preempted by the laws of the United States of America.

11.4     Reorganization. The Company shall not merge or consolidate into or with
         another company, or reorganize, or sell substantially all of its assets
         to another company, firm or person unless such succeeding or continuing
         company, firm or person agrees to assume and discharge the obligations
         of the Company under this Plan. Upon the occurrence of such event, the
         term "Company" as used in this Plan shall be deemed to refer to the
         successor or survivor company.

                                      -31-

<PAGE>

11.5     Notice. Any notice or filing required or permitted to be given to the
         Plan Administrator under this Plan shall be sufficient if in writing
         and hand-delivered, or sent by registered or certified mail, to the
         address below:

                                        Human Resources Dept.
                                         -------------------------------
                                        American Federal Savings Bank
                                         -------------------------------
                                        P.O. Box 4999
                                         -------------------------------
                                        Helena, MT  59604-4999
                                         -------------------------------

         Such notice shall be deemed given as of the date of delivery or, if
         delivery is made by mail, as of the date shown on the postmark or the
         receipt for registration or certification.

         Any notice or filing required or permitted to be given to a Participant
         under this Plan shall be sufficient if in writing and hand-delivered,
         or sent by mail, to the last known address of the Participant.

11.6     Entire Agreement. This Plan, along with a Participant's Election to
         Participate, Beneficiary Designation Form and any agreement in writing
         between the Company and any Participant, constitute the entire
         agreement between the Company and the Participant as to the subject
         matter hereof. No rights are granted to the Participant under this Plan
         other than those specifically set forth herein.

       IN WITNESS WHEREOF, the Company executes this Plan as of the date
indicated above.

                                         AMERICAN FEDERAL SAVINGS BANK

                                         By  __________________________________

                                         Title  _______________________________

                                      -32-

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