Document:

EMPLOYMENT
      AGREEMENT

    

    EMPLOYMENT
      AGREEMENT
      dated
      December 15, 2005 by and between NexMed, Inc., a Nevada corporation (the
      "Company") and Mark Westgate (the "Executive"). 

    

    WHEREAS,
      the Company desires to continue to employ Executive and to enter into
      an
      agreement (the "Agreement") embodying the terms of such employment;

    

    WHEREAS,
      the Company considers it essential to its best interests and the best interests
      of its stockholders to foster the continued employment of Executive by the
      Company during the term of this Agreement; and 

    

    WHEREAS,
      Executive is willing to accept and continue his employment on the terms
      hereinafter set forth in this Agreement. 

    

    NOW,
      THEREFORE, in consideration of the premises and mutual covenants herein and
      for
      other good and valuable consideration, the parties agree as follows:

    

    
      	1.	
              Term
                of Employment.
                Subject to earlier termination in accordance with the provisions
                of
                Section 6 of this Agreement, Executive shall be employed by the Company
                pursuant to the terms of this Agreement for a period commencing on
                December 15, 2005 (the "Effective Date") and ending on December 15,
                2008
                (the "Expiration Date"); provided,
                however,
                that,
                the term of employment under this Agreement (the "Employment Term")
                shall
                be automatically extended for one additional year unless and until
                either
                party gives notice to the other, at least 60 days before the Expiration
                Date, that the Employment Term should not be automatically
                extended.

            

    

     

    
      	2.	
              Position.

            

    

     

    
      	
            	(a)	
              During
                the Employment Term, Executive shall be employed as a Vice President
                of
                the Company, and shall have such duties, authority, and responsibility
                as
                are commensurate with his position, subject to the direction of the
                Company's Acting Chief Executive Officer (the "Acting CEO"). Executive
                shall initially have the title of Vice President of Finance and Chief
                Financial Officer of the Company.

            

    

     

    
      	
            	(b)	
              During
                the Employment Term, Executive shall devote all of his business time
                and
                attention to the performance of his duties hereunder faithfully and
                to the
                best of his abilities and shall not undertake employment with, or
                participate in, the conduct of the business affairs of any other
                person,
                corporation, or entity; provided,
                that,
                nothing shall preclude Executive from (i) with the prior written
                approval
                of the Acting CEO, serving in due course as a director, trustee or
                member
                of a committee of any organization or (ii) participating in the affairs
                of
                any recognized charitable organizations, or in any community affairs,
                of
                Executive's choice. 

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	
            	(c)	
              Executive's
                duties hereunder shall be performed for the Company worldwide, with
                particular emphasis in the Company's headquarters in East Windsor,
                New
                Jersey. 

            

    

     

    
      	3.	
              Compensation.
                

            

    

     

    
      	
            	(a)	
              Base
                Salary.
                During the Employment Term, the Company shall pay Executive a base
                salary,
                subject to increase at the discretion of the Board of Directors of
                the
                Company (the "Board"), at the annual rate of $160,000
                (the "Base Salary"), payable in regular installments in accordance
                with
                the Company's usual payroll
                practices.

            

    

     

    
      	
            	(b)	
              Bonus.
                With respect to each calendar year during the Employment Term, Executive
                shall be eligible to earn an annual bonus award (the "Bonus"). The
                amount
                of the Bonus shall be determined by the Board, or the Compensation
                Committee of the Board (the "Compensation Committee"), in its sole
                discretion, based upon the achievement by the Company of objective
                financial targets established and determined by the Board or the
                Compensation Committee in consultation with Executive no later than
                the
                end of the first month of such calendar year. The Bonus in respect
                of each
                calendar year in the Employment Term shall be paid as promptly as
                practicable following the delivery of the Company's audited financial
                statements for such year or, if later, by April 30 of the calendar
                year
                following such year. Unless otherwise stated herein, the Bonus shall
                not
                accrue until the date on which it is paid, and Executive must be
                employed
                on the date the Bonus is paid in order to receive the
                Bonus.

            

    

     

    
      	
            	(c)	
              Stock
                Option Grants.
                

            

    

     

    
      	
            	(i)	
              On
                December 15, 2005, the Compensation Committee approved a grant to
                Executive of an option to purchase an aggregate of 75,000 shares
                of the
                Company's common stock (the "Option") based on the closing price
                of the
                Company’s Common Stock on December 14, 2005, of ninety-two cents ($.92)
                per share. The Option shall vest in three equal installments (33.33%
                of
                the Stock Option Shares, which represents 25,000 Stock Option Shares)
                on
                December 31, 2006, December 31, 2007, and December 31, 2008, respectively,
                assuming continuous and uninterrupted employment until such dates.
                The
                Company will provide the Executive the ability to perform a cashless
                exercise of all Stock Options, in accordance with the vesting
                schedule.

            

    

     

    
      	
            	(ii)	
              The
                Option shall be subject to The NexMed, Inc. Stock Option and Long-Term
                Incentive Compensation Plan (the "Option Plan") and the applicable
                stock
                option agreement. 

            

    

     

    
      	
            	(iii)	
              In
                addition to the foregoing, the Compensation Committee may recommend
                to the
                Board that additional stock options be granted to Executive in accordance
                with the terms and subject to the conditions of the Option
                Plan.

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	
            	(iv)	
              All
                of Executive's outstanding but unvested stock options shall vest
                immediately upon the occurrence of a Change in Control (as defined
                in
                Appendix A hereto).

            

    

     

    
      	4.	
              Employee
                Benefits.
                During the Employment Term, Executive shall be eligible for inclusion,
                to
                the extent permitted by law, as a full-time employee of the Company
                or any
                of its subsidiaries, in any and all of the following plans, programs,
                and
                policies in effect at the time: (i) pension, profit sharing, savings,
                and
                other retirement plans and programs, (ii) life and health (medical,
                dental, hospitalization, short-term and long-term disability) insurance
                plans and programs, (iii) stock option and stock purchase plans and
                programs, (iv) accidental death and dismemberment protection plans
                and
                programs, (v) travel accident insurance plans and programs, (vi)
                vacation
                policy (Executive shall have four weeks of vacation per calendar
                year),
                and (vii) other plans and programs sponsored by the Company or any
                subsidiary for employees or executives generally, including any and
                all
                plans and programs that supplement any or all of the foregoing types
                of
                plans or programs. 

            

    

     

    
      	5.	
              Business
                Expenses and Perquisites.
                The Company shall reimburse to Executive, or pay directly, all reasonable
                expenses incurred by Executive in connection with the business of
                the
                Company, and its subsidiaries and affiliates, including but not limited
                to
                business-class travel, reasonable accommodations, and entertainment,
                subject to documentation in accordance with the Company's policy.
                

            

    

     

    
      	6.	
              Termination.
                

            

    

     

    
      	
            	(a)	
              By
                the Company for Cause.
                The Company may, for Cause, terminate Executive's employment hereunder
                at
                any time by written notice to Executive. For purposes of this Agreement,
                the term "Cause" shall mean Executive's (i) engaging in fraud against
                the
                Company or misappropriation of funds of the Company, (ii) disregard
                or
                failure to follow specific and reasonable directives of the Board,
                (iii)
                willful failure to perform his duties as Vice President of Finance
                and
                Chief Financial Officer of the Company, (iv) willful misconduct resulting
                in material injury to the Company, (v) violation of the terms of
                the
                Confidential Information and Intellectual Property Agreement between
                Executive and NexMed (U.S.A.), Inc., a wholly-owned subsidiary of
                the
                Company, dated March 5, 2002 (the "Intellectual Property Agreement")
                attached hereto as Exhibit "A", (vi) conviction of, or Executive's
                plea of
                guilty or no contest to, a felony or any crime involving as a material
                element fraud or dishonesty, or (vii) material breach (not covered
                by
                clauses (i) through (vi) of this paragraph) of any of the other provisions
                of this Agreement; provided,
                that,
                in the case of subclauses (ii), (iii) or (vii), Cause shall not exist
                if
                the act or omission deemed to constitute Cause is cured (if curable)
                by
                Executive within thirty (30) days after written notice thereof to
                Executive by the Company. For purposes of the foregoing, no act,
                or
                failure to act, on Executive's part shall be considered "willful"
                unless
                done, or omitted to be done, by Executive other than in good faith,
                and
                without reasonable belief that his action or omission was in furtherance
                of the interests of the Company. 

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    In
      the
      event of the termination of Executive's employment under this Section 6(a)
      for
      Cause, the Employment Term shall end on the day of such termination and the
      Company shall pay to Executive, no later than the payroll cycle following
      Executive’s termination, in one lump sum: (i) any accrued but unpaid Base
      Salary, less applicable deductions, including salary in respect of any accrued
      and accumulated vacation due to Executive at the date of such termination;
      and
      (ii) any amounts owing, but not yet paid, pursuant to Section 5
      hereof.

    

    Except
      as
      specifically set forth in Section 8 hereof, the Company shall have no further
      obligations to Executive under this Agreement. 

    

    
      	
            	(b)	
              Disability
                or Death.
                If Executive should suffer a Permanent Disability, the Company may
                terminate Executive's employment hereunder upon ten (10) or more
                days'
                prior written notice to Executive. If Executive should pass away
                during
                the term of this Agreement, Executive’s employment shall be deemed
                terminated on his date of death. For purposes of this Agreement,
                a
                "Permanent Disability" shall be deemed to have occurred only when
                Executive has qualified for benefits (including satisfaction of any
                applicable waiting period) under the Company's or a subsidiary's
                long-term
                disability insurance arrangement (the "LTD Policy"). In the event
                of the
                termination of Executive's employment hereunder by reason of Permanent
                Disability or death, the Employment Term shall end on the day of
                such
                termination and the Company shall pay, no later than the payroll
                cycle
                following Executive’s termination, to Executive or Executive's legal
                representative (in the event of Permanent Disability), or any beneficiary
                or beneficiaries designated by Executive to the Company in writing,
                or to
                Executive's estate if no such beneficiary has been so designated
                (in the
                event of Executive's death), a single lump sum payment of: (i) any
                accrued
                but unpaid Base Salary, less applicable deductions, including salary
                in
                respect of any accrued and accumulated vacation, due to Executive
                at the
                date of such termination; (ii) any amounts owing, but not yet paid,
                pursuant to Section 5 hereof. 

            

    

     

    In
      addition, upon a termination under this Section 6(b), and upon the satisfaction
      of the conditions set forth herein: (1) Executive shall receive a pro rata
      Bonus
      for the calendar year in which such termination occurs, equal to the Bonus
      he
      would have received, to the extent all criteria for such a Bonus have been
      met
      (with the exception of the Executive being employed of the date the Bonus is
      to
      be paid), for the calendar year of said termination multiplied by a fraction,
      the numerator of which is the number of days in such year preceding and
      including the date of termination, and the denominator of which is 365. Said
      pro-rata Bonus shall be paid at the same time as the Bonus would have been
      paid
      had Executive remained employed by the Company through the date of payment;
      (2)
      Executive shall receive any unpaid Bonus for the calendar year preceding his
      termination, to the extent that all criteria for such bonus have been met (with
      the exception of the Executive being employed on the date the Bonus is to be
      paid). Said Bonus shall be paid at the same time as the Bonus would have been
      paid had Executive remained employed by the Company through the date of payment;
      and (3) all of Executive's outstanding but unvested stock options granted
      pursuant to Section 3(c) of this Agreement shall vest immediately. The payment
      of the Bonuses and the acceleration of Executive’s options are conditioned upon
      Executive (or his legal representative) signing a release in favor of the
      Company, as provided for in Section 6(f). 

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Except
      as
      specifically set forth in Section 8 hereof, the Company shall have no further
      obligations to Executive under this Agreement. 

    

    
      	
            	(c)	
              By
                the Company without Cause.
                The Company may, without Cause, terminate Executive's employment
                hereunder
                at any time upon ten (10) or more days' written notice to Executive.
                The
                Company, in its sole discretion, may provide the Executive with ten
                (10)
                days’ pay in lieu of notice. In the event Executive's employment is
                terminated pursuant to this Section 6(c), the Employment Term shall
                end on
                the day of such termination and the Company shall pay to Executive,
                no
                later than the payroll cycle following Executive’s termination, in one
                lump sum: (i) any accrued but unpaid Base Salary, less applicable
                deductions, including salary in respect of any accrued and accumulated
                vacation, due to Executive at the date of such termination, and (ii)
                any
                amounts owing, but not yet paid, pursuant to Section 5
                hereof.

            

    

     

    In
      addition, upon a termination under this Section 6(c), and upon the satisfaction
      of the conditions set forth herein: (1) Executive shall receive a pro rata
      Bonus
      for the calendar year in which such termination occurs, equal to the Bonus
      he
      would have received, to the extent all criteria for such a Bonus have been
      met
      (with the exception of the Executive being employed of the date the Bonus is
      to
      be paid), for the calendar year of said termination multiplied by a fraction,
      the numerator of which is the number of days in such year preceding and
      including the date of termination, and the denominator of which is 365. Said
      pro-rata Bonus shall be paid at the same time as the Bonus would have been
      paid
      had Executive remained employed by the Company through the date of payment;
      (2)
      Executive shall receive any unpaid Bonus for the calendar year preceding his
      termination, to the extent that all criteria for such bonus have been met (with
      the exception of the Executive being employed on the date the Bonus is to be
      paid). Said Bonus shall be paid at the same time as the Bonus would have been
      paid had Executive remained employed by the Company through the date of payment;
      (3) all of Executive's outstanding but unvested stock options granted pursuant
      to Section 3(c) of this Agreement shall vest immediately; and (4) Executive
      shall receive severance payments (the “Severance”) in an amount equal to the
      Executive's annual Base Salary at the time of such termination of six months
      plus one week for every fully completed year of service, up to one year. The
      payment of the Bonuses and the Severance, as well as the acceleration of
      Executive’s options, are conditioned upon Executive signing a release in favor
      of the Company, as provided for in Section 6(f). 

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Except
      as
      specifically set forth in Section 8 hereof, the Company shall have no further
      obligations to Executive under this Agreement. 

    

    
      	
            	(d)	
              By
                Executive for Good Reason.
                If any of the events described below occurs during the Employment
                Term,
                Executive may terminate Executive's employment hereunder for Good
                Reason
                by written notice to the Company identifying the event or omission
                constituting Good Reason not more than one (1) month following the
                occurrence of such event and, in the case of subclauses (ii), (iii),
                or
                (iv) below, a failure by the Company to cure such act or omission
                within
                thirty (30) days after receipt of such written notice. In such event,
                the
                Employment Term and Executive's employment hereunder will be terminated
                effective as of the later of thirty-one (31) days after the Company's
                receipt of Executive's notice of termination or thirty-one (31) days
                after
                the event, and Executive's termination for Good Reason pursuant to
                this
                Section 6(d) shall be treated for all purposes as a termination without
                Cause pursuant to Section 6(c) and the provisions of Section 6(c)
                shall
                apply to such termination. The occurrence of any of the following
                events
                without Executive's consent shall permit Executive to terminate
                Executive's employment for "Good Reason" pursuant to this Section
                6(d):
                

            

    

     

    
      	
            	(i)	
              A
                "Change in Control" (as defined in Appendix A hereto) occurs;
                

            

    

     

    
      	
            	(ii)	
              The
                failure by the Company to observe or comply in any material respect
                with
                any of the material provisions of this Agreement;
                and

            

    

     

    
      	
            	(iii)	
              A
                material diminution in Executive's
                duties.

            

    

     

    
      	
            	(iv)	
              The
                assignment to Executive of duties that are materially inconsistent
                with
                Executive’s duties or that materially impair executive’s ability to
                function as the Vice President of Finance and Chief Financial
                Officer.

            

    

     

    
      	
            	(v)	
              The
                relocation of Executive’s primary office from a location that is more than
                50 miles from both (a) the Company’s executive offices at the time of
                relocation and (b) Executive’s primary residence at the time of such
                relocation.

            

    

     

    Except
      as
      specifically set forth in Section 8 hereof, the Company shall have no further
      obligations to Executive under this Agreement. 

    

    
      	
            	(e)	
              By
                Executive without Good Reason.
                Executive may terminate the Employment Term and Executive's employment
                hereunder at any time without Good Reason upon thirty (30) days advance
                written notice to the Company. In the event Executive's employment
                is
                terminated pursuant to this Section 6(e), the Company shall pay to
                Executive, no later than ten (10) days after the last day of Executive's
                employment, in one lump sum, the sum of (i) any accrued but unpaid
                Base
                Salary, less applicable deductions, including salary in respect of
                any
                accrued and accumulated vacation, due to Executive at the date of
                such
                termination, and (ii) any amounts owing, but not yet paid, pursuant
                to
                Section 5 hereof. 

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Except
      as
      specifically set forth in Section 8 hereof, the Company shall have no further
      obligations to Executive under this Agreement. 

    

    
      	
            	(f)	
              Release.
                Notwithstanding any other provision of this Agreement to the contrary,
                Executive acknowledges and agrees that any and all payments and benefits
                to which Executive is entitled under this Section 6(b), 6(c), or
                6(d),
                with the exception of accrued salary, accrued vacation payments,
                and
                payments pursuant to Section 5 of this Agreement, are conditioned
                upon and
                subject to Executive's first executing a Confidential Separation
                Agreement
                including a general waiver and release (and the expiration of any
                associated revocation period), in such reasonable and customary form
                as
                shall be prepared by the Company, of all claims Executive may have
                against
                the Company, and related entities and individuals.
                

            

    

     

    
      	7.	
              No
                Mitigation; Employee Benefit Plans.
                Executive shall not be required to mitigate amounts payable to him
                under
                this Agreement by seeking other employment or otherwise, and there
                shall
                be no offset against amounts payable to Executive under this Agreement
                on
                account of Executive's subsequent employment. Amounts payable to
                Executive
                under this Agreement shall not be offset by any claims that the Company
                may have against Executive, and such amounts payable to Executive
                under
                this Agreement shall not be affected by any other circumstances,
                including, without limitation, any counterclaim, recoupment, defense,
                or
                other right that the Company may have against Executive or others.
                Provided,
                however,
                that,
                payments made to Executive as a result of the termination of Executive's
                employment hereunder shall not be considered as includible compensation
                with respect to any employee benefit plans maintained by the Company,
                except to the extent otherwise required by law.

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	8.	
              Indemnification.
                In the event that Executive is made a party or threatened to be made
                a
                party to any action, suit, or proceeding, whether civil, criminal,
                administrative, or investigative (a "Proceeding"), by reason of
                Executive's employment with, or serving as an officer of, the Company,
                the
                Company shall indemnify and hold Executive harmless, and defend Executive
                to the fullest extent authorized by the laws of the state in which
                the
                Company is incorporated, as the same exist and may hereafter be amended,
                against any and all claims, demands, suits, judgments, assessments,
                and
                settlements (collectively the "Claims"), including all expenses incurred
                or suffered by Executive in connection therewith (excluding, however,
                any
                legal fees incurred by Executive for Executive's own counsel, except
                as
                otherwise provided in this Section 8, and excluding any Proceedings
                initiated by executive), and such indemnification shall continue
                as to
                Executive even after Executive is no longer employed by the Company
                hereunder, and shall inure to the benefit of Executive's heirs, executors,
                and administrators; provided,
                however,
                that,
                Executive promptly gives written notice to the Company of any such
                Claims
                (although Executive's failure to promptly give notice shall not affect
                the
                Company's obligations under this Section 8 except to the extent that
                such
                failure prejudices the Company or its ability to defend such Claims).
                The
                Company shall have the right to undertake, with counsel or other
                representatives of its own choosing, the defense or settlement of
                any
                Claims. In the event that the Company shall fail to notify Executive,
                within ten days of its receipt of Executive's written notice, that
                the
                Company has elected to undertake such defense or settlement, or if
                at any
                time the Company shall otherwise fail to diligently defend or pursue
                settlement of such Claims, then Executive shall have the right to
                undertake the defense, compromise, or settlement of such Claims,
                in which
                event the Company shall hold Executive harmless from any legal fees
                incurred by Executive for Executive's counsel. Neither Executive
                nor the
                Company shall settle any Claims without the prior written consent
                of the
                other, which consent shall not be unreasonably withheld or delayed.
                In the
                event that the Company submits to Executive a bona fide settlement
                offer
                from the claimant of Claims (which settlement offer shall include
                as an
                unconditional term thereof the giving by the claimant or the plaintiff
                to
                Executive a release from all liability in respect of such Claims),
                and
                Executive refuses to consent to such settlement, then thereafter
                the
                Company's liability to Executive for indemnification hereunder with
                respect to such Claims shall not exceed the settlement amount included
                in
                such bona fide settlement offer, and Executive shall either assume
                the
                defense of such Claims or pay the Company's attorneys' fees and other
                out-of-pocket costs incurred thereafter in continuing the defense
                of such
                Claims. Regardless of which party is conducting the defense of any
                such
                Claims, the other party, with counsel or other representatives of
                its own
                choosing and at its sole cost and expense, shall have the right to
                consult
                with the party conducting the defense of such Claims and its counsel
                or
                other representatives concerning such Claims and Executive and the
                respective counsel or other representatives shall cooperate with
                respect
                to such Claims. The party conducting the defense of any such Claims
                and
                its counsel shall in any case keep the other party and its counsel
                (if
                any) fully informed as to the status of such Claims and any matters
                relating thereto. Executive and the Company shall provide to the
                other
                such records, books, documents, and other materials as shall reasonably
                be
                necessary for each to conduct or evaluate the defense of any Claims,
                and
                will generally cooperate with respect to any matters relating thereto.
                This Section 8 shall remain in effect after this Agreement is terminated,
                regardless of the reasons for such termination. The indemnification
                provided to Executive pursuant to this Section 8 shall not supersede
                or
                reduce any indemnification provided to Executive under any separate
                agreement, or the By-Laws of the Company; in this regard, it is intended
                that this Agreement shall expand and extend Executive's rights to
                receive
                indemnification. 

            

    

     

    
      	9.	
              Withholding.
                The Company shall have the right to deduct and withhold from all
                payments
                to Executive hereunder all payroll taxes, income tax withholding
                and other
                federal, state and local taxes and charges which currently are or
                which
                hereafter may be required by law to be so deducted and withheld.
                

            

    

     

    
      	10.	
              Non-Solicitation
                of Employees.
                Executive recognizes and acknowledges that it is essential for the
                proper
                protection of the business of the Company that Executive be restricted
                during the term of Executive’s employment and for a one-year period
                following the termination of Executive’s employment with the Company from
                soliciting or inducing any employee of the Company to leave the employ
                of
                the Company or to encourage any other business entity to solicit
                or seek
                to hire any employee of the Company. Therefore, during the term of
                the
                Executive’s employment with the Company and for a period of one (1) year
                following the termination of such employment, Executive agrees that
                he
                shall not, directly or indirectly, hire or seek to hire any employee
                of
                the Company or assist or influence any business entity to hire or
                solicit
                for employment or take any other action which would encourage any
                such
                employee to terminate such employee’s employment by the Company. For
                purposes of this Section 11, “employee” shall include any former employee
                of the Company whose employment with the Company terminated less
                than one
                (1) year prior to the termination of the employment with the Company
                of
                the Executive.

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	11.	
              Confidentiality.
                The confidentiality provisions contained in the Confidential Information
                Agreement, signed by Executive on March 25, 2002 and attached hereto
                as
                Appendix B, including but not limited to, Section (2) (Confidential
                Information), are incorporated by reference as if fully set forth
                herein.
                Executive hereby reaffirms his obligations under that
                agreement.

            

    

     

    
      	12.	
              Non-Assignability.
                Executive's rights and benefits hereunder are personal to Executive,
                and
                shall not be alienated, voluntarily or involuntarily assigned, or
                transferred. 

            

    

     

    
      	13.	
              Binding
                Effect.
                This Agreement shall be binding upon the parties hereto, and their
                respective assigns, successors, executors, administrators, and heirs.
                In
                the event the Company becomes a party to any merger, consolidation,
                or
                reorganization, this Agreement shall remain in full force and effect
                as an
                obligation of the Company or its successor(s) in interest. None of
                the
                payments provided for by this Agreement shall be subject to seizure
                for
                payment of any debts or judgments against Executive or Executive's
                beneficiary or beneficiaries, nor shall Executive or any such beneficiary
                or beneficiaries have any right to transfer or encumber any right
                or
                benefit hereunder. 

            

    

     

    
      	14.	
              Entire
                Agreement; Modification.
                

            

    

     

    
      	
            	(a)	
              This
                Agreement supersedes all prior agreements, with the exception of
                the
                Confidential Information Agreement, and all other agreements (or
                portions
                thereof) that deal with confidentiality or intellectual property.
                This
                Agreement sets forth the entire understanding among the parties hereto
                with respect to the subject matter hereof, may not be changed orally,
                and
                may be changed only by an agreement in writing signed by the parties
                hereto. 

            

    

     

    
      	
            	(b)	
              Executive
                acknowledges that from time to time, the Company may establish, maintain
                and distribute manuals, handbooks or personnel policies, and officers
                or
                other representatives of the Company may make written or oral statements
                relating to personnel policies and procedures. Such manuals, handbooks
                and
                statements are intended only for general guidance. No policies, procedures
                or statements of any nature by or on behalf of the Company (whether
                written or oral, and whether or not contained in any manual or handbook
                or
                personnel policies), and no acts or practices of any nature, shall
                be
                construed to modify this Agreement or to create express or implied
                obligations of any nature to
                Executive.

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	15.	
              Notices.
                All notices and communications hereunder shall be in writing, sent
                by
                certified or registered mail, return receipt requested, postage prepaid;
                by facsimile transmission, with proof of the time and date of receipt
                retained by the transmitter; or by hand-delivery properly receipted.
                The
                actual date of receipt as shown by the return receipt therefore,
                the
                facsimile transmission sheet, or the hand-delivery receipt, as the
                case
                may be, shall determine the date on which (and, in the case of a
                facsimile, the time at which) notice was given. All payments required
                hereunder by the Company to Executive shall be sent postage prepaid,
                or,
                at Executive's election, shall be transferred to Executive electronically
                to such bank account as Executive may designate in writing to the
                Company,
                including designation of the applicable electronic address. The foregoing
                items (other than any electronic transfer to Executive) shall be
                addressed
                as follows (or to such other address as the Company and Executive
                may
                designate in writing from time to time):

            

    

     

    To
      the
      Company: 

    

    NexMed,
      Inc. 

    89
      Twin
      Rivers Drive

    East
      Windsor, NJ 08520

    Fax:
      609-426-9116

    Attention:
      Executive Vice President and Acting Chief Executive Officer

    

    To
      Executive: 

    

    Mark
      Westgate

    292
      White
      Road

    Little
      Silver, NJ 07739

    Fax:
      609-426-9116

    

    
      	16.	
              Governing
                Law; Jurisdiction.
                This Agreement shall be governed by, and construed and enforced according
                to, the domestic laws of the State of New Jersey without giving effect
                to
                the principles of conflict of laws thereof, or such principles of
                any
                other jurisdiction, which could cause the application of the substantive
                law of any jurisdiction other than the State of New Jersey. The Company
                and Executive agree that the state or federal courts of New Jersey
                shall
                have exclusive jurisdiction to hear and determine any dispute which
                may
                arise under this Agreement. 

            

    

     

    
      	17.	
              Severability.
                The invalidity or unenforceability of any provision of this Agreement
                shall not affect the validity or enforceability of any other provision
                of
                this Agreement, and each other provision of the Agreement shall be
                severable and enforceable to the extent permitted by law.
                

            

    

     

    
      	18.	
              Headings.
                The headings of the Sections hereof are provided for convenience
                only and
                are not to serve as a basis for interpretation or construction, and
                shall
                not constitute a part, of this Agreement.

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	19.	
              Signature
                in Counterparts.
                This Agreement may be signed in counterparts, each of which shall
                be an
                original, with the same effect as if the signatures thereto and hereto
                were upon the same instrument. 

            

    

     

    IN
      WITNESS WHEREOF, Executive has hereunto set his hand and the Company has caused
      this Agreement to be executed in its name on its behalf, all as of the day
      and
      year first above written. 

    

    

    
      	 	
              /s/
                Mark Westgate

              Mark
                Westgate

              

              

              

              NEXMED,
                INC.

              

              

              

              By:/s/                                                                
                

              Title:
                

            

    

     

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    Appendix
      A

    Change
      in Control

    

    For
      the
      purpose of this Agreement, a "Change in Control" shall be deemed to have taken
      place if: 

    

    A. Individuals
      who, on the date hereof, constitute the Board (the "Incumbent Directors") cease
      for any reason to constitute at least a majority of the Board, provided that
      any
      person becoming a director subsequent to the date hereof, whose election or
      nomination for election was approved by a vote of at least two-thirds of the
      Incumbent Directors then on the Board (either by a specific vote or by approval
      of the proxy statement of the Company in which such person is named as a nominee
      for director, without written objection to such nomination) shall be an
      Incumbent Director; provided,
      however,
      that,
      no
      individual initially elected or nominated as a director of the Company as a
      result of an actual or threatened election contest with respect to directors
      or
      as a result of any other actual or threatened solicitation of proxies or
      consents by or on behalf of any person other than the Board shall be deemed
      to
      be an Incumbent Director; 

    

    B. Any
      "Person" (as such term is defined in Section 3(a)(9) of the Securities Exchange
      Act of 1934 (the "Exchange Act") and as used in Sections 13(d)(3) and 14(d)(2)
      of the Exchange Act) is or becomes a "beneficial owner" (as defined in Rule
      13d-3 under the Exchange Act), directly or indirectly, of securities of the
      Company representing 25% or more of the combined voting power of the Company's
      then outstanding securities eligible to vote for the election of the Board
      (the
      "Voting Securities"); provided,
      however,
      that,
      the
      event described in this paragraph B shall not be deemed to be a Change in
      Control by virtue of any of the following acquisitions: (i) by the Company
      or
      any subsidiary of the Company in which the Company owns more than 25% of the
      combined voting power of such entity (a "Subsidiary"), (ii) by any employee
      benefit plan (or related trust) sponsored or maintained by the Company or any
      Subsidiary, (iii) by any underwriter temporarily holding the Company's Voting
      Securities pursuant to a public offering of such Voting Securities, (iv)
      pursuant to a Non-Qualifying Transaction (as defined in paragraph C immediately
      below), (v) pursuant to any acquisition by Executive or by any Person which
      is
      an "affiliate" (within the meaning of 17 C.F.R. § 230.405) of Executive (an
      "Excluded Person"); 

    

    C. The
      consummation of a merger, consolidation, statutory share exchange or similar
      form of corporate transaction involving the Company or any of its Subsidiaries
      that requires the approval of the Company's stockholders, whether for such
      transaction or the issuance of securities in the transaction (a "Business
      Combination"), unless immediately following such Business Combination: (i)
      more
      than 25% of the total voting power of (A) the corporation resulting from such
      Business Combination (the "Surviving Corporation"), or (B) if applicable, the
      ultimate parent corporation that directly or indirectly has beneficial ownership
      of 100% of the voting securities eligible to elect directors of the Surviving
      Company (the "Parent Corporation"), is represented by the Company's Voting
      Securities that were outstanding immediately prior to such Business Combination
      (or, if applicable, is represented by shares into which the Company's Voting
      Securities were converted pursuant to such Business Combination), and such
      voting power among the holders thereof is in substantially the same proportion
      as the voting power of the Company's Voting Securities among the holders thereof
      immediately prior to the Business Combination, (ii) no Person (other than (A)
      any employee benefit plan (or related trust) sponsored or maintained by the
      Surviving Corporation or the Parent Corporation or (B) an Excluded Person is
      or
      becomes the beneficial owner, directly or indirectly, of 25% or more of the
      total voting power of the outstanding voting securities eligible to elect
      directors of the Parent Corporation (or, if there is no Parent Corporation,
      the
      Surviving Corporation) and (iii) at least a majority of the members of the
      board
      of directors of the Parent Corporation (or, if there is no Parent Corporation,
      the Surviving Corporation) following the consummation of the Business
      Combination were Incumbent Directors at the time of the Board's approval of
      the
      execution of the initial agreement providing for such Business Combination
      (any
      Business Combination which satisfies all of the criteria specified in (i),
      (ii)
      and (iii) above shall be deemed to be a "Non-Qualifying Transaction");

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    D. A
      sale of
      all or substantially all of the Company's assets, other than to an Excluded
      Person; 

    

    E. The
      stockholders of the Company approve a plan of complete liquidation or
      dissolution of the Company; or 

    

    F. Such
      other events as the Board may designate. 

    

    Notwithstanding
      the foregoing, a Change in Control of the Company shall not be deemed to occur
      solely because any person acquires beneficial ownership of more than 25% of
      the
      Company's Voting Securities as a result of the acquisition of the Company's
      Voting Securities by the Company which reduces the number of the Company's
      Voting Securities outstanding; provided,
      that,
      if
      after such acquisition by the Company such person becomes the beneficial owner
      of additional Company Voting Securities that increases the percentage of
      outstanding Company Voting Securities beneficially owned by such person, a
      Change in Control of the Company shall then occur.Exhibit
      10.20

    BOARD
      MEMBER AGREEMENT

    This
      Agreement is being made and entered into this 31 day of January 2005, by and
      between Pokertek, Inc., a North Carolina corporation with principal offices
      at
      1020 Crews Road, Suite J, Matthews, NC 28106 (the “Company”), and Lyle Berman an
      individual with address at One Hughes Center Dr., Suite 606, Las Vegas, NV,
      89109 (the “Director”).

     

    WITNESSETH

    WHEREAS,
      the Company is engaged in the business of software sales and software research
      and development (the “Business”);

     

    WHEREAS,
      the Company desires to establish a Board of Directors to assist the Company
      in
      its endeavors to manage the Business so as to maximize returns for the Company’s
      shareholders;

     

    WHEREAS,
      the Company desires to engage the Director as the Chairman of its Board of
      Directors and the Director represents that he has the requisite skill and
      knowledge to serve as such; and

     

    NOW
      THEREFORE, in consideration of the mutual promises contained herein, and
      intending to be legally bound, the parties hereto hereby declare and agree
      as
      follows:

     

    1.
Term;
      Termination. The term of this Agreement shall commence on the date hereof (the
      “Effective Date”), and shall continue until the Director no longer serves on the
      Company’s Board of Directors (the “Term”), it being 
      understood that the Director shall remain on the Company’s Board of Directors at
      the discretion of the Company’s shareholders.

     

    2.
      Compensation
      and Reimbursement.

     

    
      	
            	2.1.	
              On
                the date of this Agreement, for serving on the Board of Directors,
                Company
                shall grant the Director, pursuant to the Company’s 2004 Stock Incentive
                Plan, an option (the “Option”) to purchase 200,000 shares (equal to 2.66%
                of the fully diluted shares of the Company) of common stock of the
                Company
                (the “Option Shares”), at a purchase price equal to $2.67, under the terms
                and conditions set forth in the Stock Option Agreement, in the form
                attached as Exhibit A, which shall be provided to Director on the
                date of
                the grant. 50,000 shares (equal to .66% of the fully diluted shares
                of the
                Company) shall vest in a series of four (4) successive equal quarterly
                installments over the one year period measured from the date hereof
                upon
                the Director’s completion of each additional quarter over such one (1)
                year period. The remaining option shares shall vest in a series of
                twelve
                (12) successive equal quarterly installments upon the Director’s
                completion of each additional quarter serving as a member of the
                Board
                over the three (3) year period beginning one (1) year from the date
                hereof. The Stock Option Agreement (the “Option Agreement”) in the form
                attached as Exhibit A, to be entered into at the time of the grant
                of the
                Option shall provide that all Option Shares subject to the Option
                Agreement at the time of a Change of Control (as defined in the 2004
                Stock
                Incentive Plan) not otherwise vested shall automatically vest in
                full
                immediately prior to the effective date of the Change of Control
                so that
                the Option may be exercised for any or all of the Option Shares.
                In
                addition, if Optionee is terminated without Cause (as defined below)
                as a
                member of the Board of Directors by the Company without Director’s written
                consent, or if the shareholders of the Company do not re-elect Director
                as
                a member of the Board of Directors at any time during the term of
                the
                Option, or in the event of a Constructive Termination (as defined
                below)
                of Director’s service as a member of the Board of Directors at any time
                during the term of the Option, the Option shall become exercisable
                in full
                and may be exercised for any or all of the Option Shares. For purposes
                of
                this Agreement, “Cause” means (i) Director’s conviction (by a court of
                competent jurisdiction, not subject to further appeal) of, or pleading
                guilty to, a felony or a crime involving fraud or dishonesty against
                the
                Company; or (ii) Director’s willful and continued failure to substantially
                perform Director’s duties for the Company which failure continues for
                thirty (30) days following Director’s receipt of written notice of such
                failure to perform or (iii) Director’s death, or any illness, disability
                or other incapacity in such a manner that Director is physically
                rendered
                unable regularly to perform his duties hereunder for a period in
                excess of
                one hundred twenty (120) consecutive days or (iv) Director having
                ownership interest (other than ownership, for strictly investment
                purposes, of less than five percent (5%) of the capital stock of
                a
                company) in any entity including Lakes Entertainment, Inc., WPT
                Enterprises, Inc. or Sklansky Games, LLC which engages in Competing
                Activities (as defined in Section 3.3). For purposes of this Agreement,
                “Constructive Termination” means Director’s resignation from the Board of
                Directors following the Company’s failure to (i) obtain director and
                officer liability insurance acceptable to Director within thirty
                (90) days
                after the date of this Agreement, or (ii) maintain such insurance
                coverage
                at all times thereafter.

            

    

     

    
      	
            	2.2.	
              The
                Company will reimburse Director for all expenses incurred by him
                in the
                course of the performance of his duties as a Director hereunder and
                approved, in advance, by the
                Company.

            

    

     

    3. Non-Disclosure,
      Ownership of Intellectual Property

     

    
      	
            	3.1.	
              Director
                covenants and undertakes that, during the term of this Agreement
                and
                thereafter, absent the Company’s prior written consent, all information,
                written or oral, relating to the Company, its parents, subsidiaries
                or
                affiliates, the Company’s Business or condition (actual or planned),
                disclosed to him by the Company, or which otherwise became known
                to him in
                connection with the performance of the Services (the “Information”), shall
                be maintained by him in full and absolute confidence, and he shall
                not use
                such Information, directly or indirectly, in whole or in part, for
                his own
                benefit or any purpose whatsoever except as specifically and explicitly
                provided hereunder. Director’s undertaking hereunder shall not apply to
                Information which is in, or becomes part of, the public domain, or
                which
                was known by Director before the time of
                disclosure.

            

    

     

    
      	
            	3.2.	
              [Omitted.]

            

    

     

    
      	
            	3.3.	
              Director
                agrees and undertakes that, so long as this Agreement is in effect
                and for
                a period of one year thereafter (the “Covenant Period”), neither he, nor
                any entity in which he holds a majority of the equity interest or
                voting
                control (either directly or through other entities in which he holds
                a
                majority of the equity interest or voting control) (each a “Controlled
                Entity”), shall engage in the marketing and distribution of poker tables
                featuring automated live poker games through the use of a simulated
                dealer
                and an electronic facsimile of chips and playing cards (such activities,
                the “Competing Activities”). The Company acknowledges that Director has
                ownership interests in or other relationships with entities that
                are not
                Controlled Entities (each a “Non-Controlled Entity”), and the restriction
                in the preceding sentence does not apply to activities of Non-Controlled
                Entities. However, Director agrees to inform the Company at such
                time as
                the Non-Controlled Entity commences Competing Activities, provided
                that he
                is aware of the Competing Activities and the disclosure would not
                violate
                a non-disclosure agreement with the Non-Controlled Entity. The parties
                acknowledge that the covenants contained in this paragraph 3.3 are
                made by
                Director personally and not by any third party. The Company acknowledges
                that Lakes Entertainment, Inc., WPT Enterprises, Inc. and Sklansky
                Games,
                LLC are Non-Controlled Entities.

            

    

     

    
      	4.  
               	
              Miscellaneous.
                This Agreement constitutes the entire agreement between the parties
                with
                respect to the matters referred to herein, and no other arrangement,
                understanding or agreement, verbal or otherwise, shall be binding
                upon the
                parties hereto. This Agreement may not be assigned by any of the
                parties
                hereto, and may not be amended or modified, except by the written
                consent
                of both parties hereto. No failure or delay on the part of any party
                hereto in exercising any right, power or remedy hereunder shall operate
                as
                a waiver thereof. Headings to Sections herein are for the convenience
                of
                the parties only, and are not intended to be or to affect the meaning
                or
                interpretation of this Agreement. The Company shall have the right
                to
                enforce this Agreement and any of its provisions by injunction, specific
                performance or other equitable relief, without bond and without prejudice
                to any other rights and remedies that the Company may have for the
                breach
                of this Agreement. In the event that any covenant, condition or other
                provision contained in this Agreement is held to be invalid, void
                or
                illegal by any court of competent jurisdiction, the same shall be
                deemed
                severable from the remainder thereof, and shall in no way affect,
                impair
                or invalidate any other covenant, condition or other provision therein
                contained. If such condition, covenant or other provisions shall
                be deemed
                invalid due to its scope or breadth, such covenant, condition or
                other
                provision shall be deemed valid to the extent permitted by law. All
                notices required to be delivered under this Agreement shall be effective
                only if in writing and shall be deemed given when received by the
                party to
                whom notice is required to be given and shall be delivered personally,
                or
                by registered mail to the addresses set forth
                above.

            

    

     

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

     

    
      	 	 	 
	 	POKERTEK,
              INC.
	 
 	 
 	 
 
	 	By:  	/s/ Gehrig
              H.
              White
	 	
              
Gehrig
              H. White
	 	Chief
              Executive Officer

    

     

    
      	 	 	 
	 
 	 
 	 
 
	Date: January 31, 2005	By:  	/s/ Lyle
              Berman
	 	
              
Lyle
              Berman

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