Document:

Exhibit 10.1

EMPLOYMENT AGREEMENT

          AGREEMENT (the “Agreement”), dated as of December 4, 2006 by and between NOVADEL PHARMA INC., a Delaware corporation with principal
executive offices at 25 Minneakoning Rd., Flemington, New Jersey 08822 (the “Company”), and DAVID H. BERGSTROM, Ph.D. residing at 15 Kerby Lane, Mendham, New Jersey 07945-2901 (the “Executive”). 

  W I T N E S S E T H:

          WHEREAS, the Company desires to employ the Executive as Chief Operating Officer of the Company, and the Executive desires to serve the Company in that capacity, 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 the date hereof, unless sooner terminated in accordance with the
provisions of Section 8 below (the “Term”). 

          3.       Duties; Best Efforts; Place of Performance. 

           (a)     The
Executive shall initially serve as Chief Operating Officer of the Company and
shall perform, subject to the direction of the Chief Executive Officer, such
duties as are customarily performed by the Chief Operating  Officer. The Executive
shall also have such other powers and duties as may be from time to time prescribed
by the Chief Executive Officer or Board of Directors 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 substantially all of his business time, attention and energies to the business and affairs of the Company and shall use his 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 his duties hereunder or the Executive’s availability to perform such

duties or that will adversely affect, or negatively reflect upon, the Company. Notwithstanding the above, Executive may hold external directorships or executive positions with the advance approval of the Company’s Board of
Directors. 

          (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 his duties under this Agreement, the Company shall pay the
Executive as follows:

          (a)      Base Salary. The Company shall pay the Executive a base salary (the “Base Salary”) at a rate of $300,000 per annum, payable in equal semi-monthly installments during the Term. The
Executive’s Base Salary shall be subject to annual review by the Compensation Committee of the Board of Directors and may be increased, but not decreased, from time to time at the discretion of the Compensation Committee of the Board of
Directors. 

          (b)      Bonus. The company shall pay the Executive a cash bonus of $100,000 for the period commencing on January 1, 2007 and ending on December 31, 2007, such bonus will be paid in January 2008. In
the remaining years of the contract, the Executive shall be eligible to receive a bonus equal to 30% (thirty percent) of his base salary, provided, however, that such bonus shall be payable only upon the successful achievement of certain performance
milestones related to the Executive’s role in the Company, which milestones shall be defined and enumerated by mutual agreement between the Executive and the President & Chief Executive Officer of the Company within the first month of
Executive’s term of employment, and again at the same time in each succeeding year of Executive’s term of employment with the Company.  The amount of Bonus paid to the Executive shall be increased or decreased from time to time at the
discretion of the Compensation Committee of the Board. 

          (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 4. 

          (d)      Stock Options and Restricted Shares. On the first day of employment, 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 900,000 shares of Common Stock of the Company. Such option grant will have a term of ten (10) years. The stock options shall vest
upon  

	
12.5% upon FDA acceptance of NDA submission for zolpidem
	
12.5% upon FDA acceptance of NDA submission for sumatriptan
	
12.5% upon Board of Directors approval and successful implementation of portfolio plan for next generation compounds

	
12.5% upon CEO approval and successful implementation of organization plan to address issues in analytical, clinical and regulatory
	
15% upon completion of a Board of Directors approved licensing deal for zolpidem
	
15% upon completion of a Board of Directors approved licensing deal for sumatriptan
	
20% at Board of Directors discretion upon completion of approved licensing deal for zolpidem or sumatriptan

subject, in each case, to the provisions of Section 9 below. 

          If the Agreement is not renewed by the Executive beyond its initial term and the Company wishes to renew the Agreement beyond the initial term without substantial change in the terms of this Agreement, but not including Section 4
(d), then such options which have not vested will expire upon termination. 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 9 below. The exercise price of said 900,000 shares shall be equal to 100% of the Fair Market Value (trading price) on the first date of employment. Such option grants are not incentive stock
options, as such, research of taxation for these stock option grants shall be the sole responsibility of the Executive.

          On the first day of employment, and as additional compensation for the services to be rendered by the Executive pursuant to this Agreement, the Company shall grant the Executive 100,000 shares of restricted stock
(“Restricted Shares”) pursuant to the Company’s 2006 Equity Incentive Plan.  The grant price of said 100,000 Restricted Shares shall be equal to 100% of the Fair Market Value
(trading price) on the first date of employment. Such Restricted Shares grant shall contain restrictions that will vest ratably over a three-year period ending on the third anniversary of the grant so that 33,333 shares of the Company’s Stock
will vest on the first anniversary of the grant, the second anniversary of the grant, and 33,334 shares of the Company’s Stock will vest on the third anniversary of the grant, subject to the provisions of Section 9 below.  If (i) the
Executive’s employment is terminated prior to end of term by the Company other than as a result of the Executive’s death or Disability and other than for reasons specified in Sections 9(b) or (c), or (ii) the Executive’s employment is
terminated by the Executive for Good Reason or the Company provides notice to Executive this Employment agreement will not be renewed, then all Restricted Shares that are subject to forfeiture as of the termination date or nonrenewal date shall be
forfeited and returned to the Company. 

          In addition to the equity awards contemplated under this Section 4(b), the Executive shall be eligible for additional annual grants of Stock Options and other equity awards at the discretion of the Compensation Committee of the
Board of Directors. 

          (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.

          (f)      Other Benefits. The Executive shall be entitled to all rights and benefits for which he shall be eligible under any benefit or other plans including, without limitation, dental, medical, medical
reimbursement and hospital plans, supplemental life insurance 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. 

          (g)      Vacation. The Executive shall, during the Term, be entitled to a vacation of five (5) weeks per annum commencing January 1, 2007, in addition to holidays observed by the Company. The Executive
shall not be entitled to carry any vacation forward to the next year of employment. 

          5.        Confidential Information and Inventions.

          (a)      The Executive recognizes and acknowledges that in the course of his duties he 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 his 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), 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 himself 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 his
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 his possession to the Company upon request and in any event immediately upon termination of employment.

          (b)      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 his employment with the Company. Such restriction does not apply to Executive’s utilization of that information in furtherance of Company’s
normal business objectives.

          (c)      The
Executive agrees that all inventions, discoveries, improvements and patentable
or copyrightable works (“Inventions”)
 initiated, conceived or made by him, either alone or in conjunction with others,
during the Term, other than those Inventions listed on Schedule 6(c) attached
hereto, 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 he may have or acquire in all such Inventions; provided, however,
that the Board of  Directors of the Company may in its sole discretion agree
to waive the Company’s rights pursuant to this Section 5(c) with respect
to any Invention that is not directly or indirectly related to the Company’s
business. 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 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 himself 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 5 shall survive any termination of this Agreement, but shall not apply during or after Executive’s employment term to information or inventions of other
entities that Executive may serve as a director with prior Board of Directors approval.

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

          (a)      The Executive understands and recognizes that his 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 5) and the Executive agrees that, during the Term and for a period of eighteen (18) months thereafter, he 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 his 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 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 6(a) shall be deemed to prohibit the
Executive from (i) 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 4.9%of any class or series of outstanding securities of such corporation.

          (b)      During
the Term and for eighteen (18) months 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 his position will be
          related to the business of the Company or any such affiliate; or

                 (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 and the Company mutually agree that both during the Term and at all times thereafter, they shall not directly or indirectly disparage, whether or not true, the name or reputation of
the Executive, 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 5 or this Section 6 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 5 or 6 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 6(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 6, 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 portions. If any of the covenants contained in this Section 6 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 6 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 5 or this Section 6, 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 he shall not raise in any proceeding brought to enforce the provisions of Section 5 or this Section 6 that the covenants
contained in such Sections limit his ability to earn a living.

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

          7.      Representations and Warranties by the Executive and Company.

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

	          	          (i)      Neither
          the execution or delivery of this Agreement nor the performance by
          the Executive of his 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 or Company is a party or by which they are bound.

                 (ii)      The
          Executive and the Company have the full right, power and legal capacity
          to enter and deliver this Agreement and to perform their duties and
          other obligations hereunder. This Agreement constitutes the legal,
          valid and binding obligation of the Executive and the Company enforceable
          against them in accordance with its terms. No approvals or consents
          of any persons or entities are required for the Executive or Company
          to execute and deliver this Agreement or perform their 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 for “Cause”.
Cause is defined as:

	          	          (i)     The
          willful failure, disregard or refusal by the Executive to perform his
          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),
          the business or reputation of the Company or any of its affiliates,
    including but

 

	          	not limited to, any officer, director, or executive
          of the Company or any of its affiliates;

                 (iii)            Willful
          misconduct by the Executive in respect of the duties or obligations
        of the Executive under this Agreement, including, without limitation,
        insubordination with respect to legal directions received by the Executive
        from the President and CEO or the Board of Directors of the Company;

                 (iv)
              The Executive’s indictment of any felony
          or a conviction 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 prohibited 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 Sections 5, 6 or 7 of this Agreement; and

                 (viii)           Breach
          by the Executive of any provision of this Agreement other than those
          contained in Sections 5, 6 or 7 which is not cured by the Executive
        within thirty (30) days after written notice thereof is given to the
        Executive by the Company.

                 (ix)             Before constituting grounds for termination for cause, Executive will
        be given written notice and five (5) business days to cure conduct
  under Paragraphs i, iii, vii, and viii of this section.

          (b)      The Executive’s employment hereunder may be terminated by the Board of Directors of the Company due to the Executive’s Disability. For purposes of this Agreement, a termination for
“Disability” shall occur (i) when the Board of Directors of the Company has provided a written termination notice to the Executive supported by a written statement from a two
reputable independent physicians one of which has been selected by Executive, 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, his employment
hereunder by reason of physical or mental illness or injury, or (ii) upon rendering of a written termination notice by the Board of Directors of the Company after the Executive has been unable to substantially perform his 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. Such written statements supporting Disability will have the same meaning as Long Term Disability allowing
coverage by the

Company’s Long Term Disability Insurance. For purposes of this Section 8(b), the Executive agrees to make himself available and to cooperate in any reasonable examination by a reputable independent physician retained by the
Company.

          (c)      The Executive’s employment hereunder may be terminated by the Executive for Good Reason. For purposes of this Agreement, “Good Reason” means (i) a breach by the Company of its material obligations under Section 4 of this Agreement (a “Material Breach”), (ii) a material reduction by the Board of
Directors of the Company of the Executive’s duties, title or authority provided for in this Agreement (a “Material Change”), or (iii) the relocation of the principal executive
office of the Company in excess of fifty (50) miles from its present location not consented to by the Executive; provided, however, that a Material Breach or a Material Change shall constitute Good Reason only if the Executive has notified the Board
of Directors of the Company in writing of the existence and particulars of such Material Breach or Material Change and the Board of Directors has failed to remedy such Material Change or Material Breach within thirty (30) days of such
notice.

          (d)      The Executive’s employment hereunder may be terminated by the Board of Directors of 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%) of the combined voting power of the Company’s then outstanding
securities if such person or his 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).

          9.       Compensation upon Termination.

          (a)      If the Executive’s employment is terminated as a result of his death or Disability, the Company shall (i) pay to the Executive or to the Executive’s estate, as applicable, (x) his Base
Salary and any accrued and unpaid Bonus and expense reimbursement amounts through the date of his death or Disability and (y) the pro rata portion of the Guaranteed Bonus and Stock Options earned by the Executive during the year of his death or
Disability (which, for this purpose, shall be prorated in accordance with the number of full months in such year during which the Executive was employed hereunder), and (ii) for the longer of twelve (12) months following his death or Disability or
the balance of the Term (as if such termination had not occurred) provide continuation coverage to the members of the Executive’s family and, in the case of termination for Disability, the Executive under all major medical and other health,
accident, life or other disability plans and programs in which such family members and, in the case of termination for Disability, the Executive participated immediately prior to his death or

Disability. All Stock Options that are scheduled to vest by the end of the calendar year in which such termination occurs shall be accelerated and deemed to have vested as of the termination date. All Stock Options that have not
vested (or been deemed pursuant to the immediately preceding sentence to have vested) as of the date of termination shall be deemed to have expired as of such date. Any Stock Options that have vested as of the date of the Executive’s death
(including the Options described in the immediately preceding sentence) shall remain exercisable for a period of one hundred and eighty (180) days after the date of his death; in the event of a Disability, any unexercised option may be exercised in
whole or in part, within the first ninety (90) days after such termination of employment or service.  Any Restricted Shares that were forfeitable shall thereupon become nonforfeitable. 

          (b)      If the Executive’s employment is terminated by the Board of Directors of the Company for Cause or by the Executive other than for Good Reason, the Company shall pay to the Executive his Base
Salary through the date of his 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. Any Restricted Shares that are then forfeitable shall be forfeited immediately. 

          (c)      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 his Base Salary for a period of one year following such termination, and (ii) pay the Executive any Bonus that would have otherwise been due to the Executive by the end of the calendar end of the year in which such termination
occurs as well as any expense reimbursement amounts owed through the date of termination. 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.  All restrictions on
the Executive’s Restricted Shares shall lapse immediately. 

          (d)      If (i) the Executive’s employment is terminated prior to end of term by the Company other than as a result of the Executive’s death or Disability and other than for reasons specified in
Sections 9(b) or (c), or (ii) the Executive’s employment is terminated by the Executive for Good Reason or the Company provides notice to Executive this Employment agreement will not be renewed, the Company shall (i) continue to pay to the
Executive twelve (12) month severance from date of public announcement of same, (ii) pay the Executive the Bonus that would have otherwise been due, unless there is documentation on file for a period of at least three (3) months regarding
performance issues which have not been cured, to the Executive in the calendar year in which such termination or non-renewal occurs and (iii) pay the Executive any expense reimbursement amounts owed through the date of termination. The
Company’s obligation under clauses (i) and (ii) in the preceding sentence will be reduced, however, if compensation is received from other employment for these amounts otherwise actually earned by the Executive during the one year period
following the termination of his employment. All Stock Options that are granted shall be accelerated and deemed to have

vested as of the termination date. All vested options at date of termination shall expire ninety (90) days post termination of employment. All Restricted Shares that are subject to forfeiture as of the termination date or
nonrenewal date shall be forfeited and returned to the Company. 

          (e)      The continuation coverage under any major medical and other health, accident, life or other disability plans and programs for the periods provided in Section 9(a) 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.

          (f)      This Section 9 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 his employment, he shall not be entitled to any payments or benefits which are not explicitly provided in Section 9.

          (g)      The provisions of this Section 9 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 5 or 6 hereof), or regarding the interpretation thereof, shall be finally settled by
arbitration conducted in New Jersey in accordance with the commercial 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 5 and 6 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. The costs of such arbitration shall be borne by the non prevailing party as determined by the arbitrator. Judgment on the arbitration award may be entered by any court of competent
jurisdiction.

          (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.

          (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.

	          	          (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.

	 	NOVADEL PHARMA INC 
      

      By: /s/ JAN H. EGBERTS 

      Name: Jan H. Egberts, M.D. 

      Title: President and Chief Executive Officer 

      

      

      EXECUTIVE 

      

      By: /s/ DAVID H. BERGSTROM 

      Name: DAVID H. BERGSTROM, Ph.D.Exhibit 10.2

  INCENTIVE STOCK OPTION

  non-transferable 

  GRANT TO 

  DAVID H. BERGSTROM 

  (the “Participant”) on December 4, 2006 

  the right to purchase (“ISO”) from NovaDel Pharma Inc. (the “Company”) 

  58,479 shares
      of its common stock, par value $0.001 per share,

  at the exercise price of $1.71 per share 

pursuant to and subject to the provisions of the 2006 NovaDel Pharma Inc. Equity Incentive Plan (the “Plan”) and to the terms and conditions set forth hereafter. By accepting the ISO, the Participant, shall be
deemed to have agreed to the terms and conditions set forth in this Award Agreement and the Plan.  This option is intended to qualify as an “incentive stock option” within the meaning of Section 422 of the Internal Revenue Code of 1986, as
amended (the “Code”). 

IN WITNESS WHEREOF, NovaDel Pharma Inc. acting by and through its duly authorized officer, has caused this Award Agreement to be executed as of the day and year first above written. 

	 	NovaDel Pharma Inc. 

      
      

      By:/s/ MICHAEL E. SPICER           

      Its: Chief Financial Officer 

      
      

      Accepted by the Participant: 

      
      

      /s/ DAVID H. BERGSTROM           

    David H. Bergstrom 

	
1.	
Grant of Option. The committee (the “Committee”) appointed by the Board of Directors of the Company to administer the 2006
NovaDel Pharma Inc. Equity Incentive Plan (the “Plan”), hereby grants to the Participant named above, under the Plan, an incentive stock option (the “ISO”) to purchase from the Company, on the terms and conditions set forth in
this Award Agreement, the number of shares (“Shares”) indicated above of the Company’s $0.001 par value common stock (“Common Stock”), at the exercise price per share set forth above (the “Exercise Price”).
Unless otherwise indicated, any capitalized terms used but not defined herein shall have the meaning ascribed to such term in the Plan. By accepting the ISO, the Participant is deemed to agree to comply with the terms of the Plan, this Award
Agreement and all applicable laws and regulations.	
	        	 
	
2.	
Tax Matters. The ISO granted hereunder is intended to qualify as an “incentive stock option” under Section 422 of the Code. If
the aggregate Fair Market Value of Shares with respect to which the ISO first become exercisable by the Participant in any calendar year exceeds the limit determined in accordance with the provisions of Section 422 of the Code (the
“Limit”) taking into account Shares subject to all ISOs granted by the Company which are held by the Participant, the excess will be treated as nonstatutory stock
options which shall continue to be subject to all provisions in this Award Agreement and the Plan. To determine whether the Limit is exceeded, the Fair Market Value of Shares subject to an ISO shall be determined as of the Grant Dates of such ISOs.
In reducing the number of options treated as ISOs to meet the Limit, the most recently granted options will be reduced first. If a reduction of simultaneously granted options is necessary to meet the Limit, the Committee may designate which Shares
are to be treated as Shares acquired pursuant to an ISO.	
	 
	
3.	
Vesting. The ISO shall become exercisable as provided below, which shall be cumulative. To the extent that the ISO has become exercisable with respect to a number of Shares as
provided below, the ISO may thereafter be exercised by the Participant, in whole or in part, at any time or from time to time prior to the expiration of the ISO as provided herein and in accordance with the Plan, including, without limitation, the
filing of such written form of exercise notice, if any, as may be required by the Committee and payment in full of the Exercise Price multiplied by the number of Shares so exercised. Upon expiration of the ISO, the ISO shall be cancelled and no
longer exercisable. The following table indicates each date upon which the Participant shall be entitled to exercise the ISO with respect to the percentage of Shares vested indicated beside that date provided that the Participant is continuously
employed at all times until the applicable vesting date:	
	 

	                    	Vesting Date	Number of Shares Vested
	 	
    
	 		
12.5% upon FDA acceptance of NDA submission for zolpidem
	
12.5% upon FDA acceptance of NDA submission for sumatriptan
	
12.5% upon Board of Directors approval and successful implementation of portfolio plan for next generation compounds
	
12.5% upon CEO approval and successful implementation of organization plan to address issues in analytical, clinical and regulatory
	
15% upon completion of a Board of Directors approved licensing deal for zolpidem
	
15% upon completion of a Board of Directors approved licensing deal for sumatriptan
	
20% at Board of Directors discretion upon completion of approved licensing deal for zolpidem or sumatriptan

	        	
There shall be no proportionate or partial vesting in the periods prior to each vesting date and all vesting shall occur only on the appropriate vesting date.	
	 
	
4.	
Option Term.
The term of the ISO shall be ten (10) years after the Grant Date, subject to
earlier termination in the event of the Participant’s termination of employment
 or service as set forth in Section 5.	
	 
	
5.	
Termination.	
	 
	 	          a. For
          Cause. If the Participant’s
          employment or service is terminated for Cause any unexercised ISO shall
          terminate effective immediately.

               b. On
          Account of Death. If the Participant’s
          employment or service terminates on account of death (or if the Participant
          dies within ninety (90) days following termination of employment due
          to Disability), then any unexercised ISO, to the extent exercisable
          on the date of death, may be exercised, in whole or in part, within
          the first one hundred eighty (180) days (but only during the Option
          Term) after the death of the Participant by (A) his or her personal
          representative or by the person to whom the ISO is transferred by will
          or the applicable laws of descent and distribution, or (B) the Participant’s
          designated beneficiary and, to the extent that any such ISO was not
          exercisable on the date of death, it will immediately terminate. 

               c. On
          Account of Disability. If the
          Participant’s employment or service terminates on account of Disability,
          then any unexercised ISO, to the extent exercisable on the date of
          such termination of employment or service due to Disability, may be
          exercised in whole or in part, within the first ninety (90) days after
          such termination of employment or service due to Disability (but only
          during the Option Term) by the Participant, or by his or her legal
          guardian or representative, and to the extent that any such ISO was
          not exercisable on the date of such termination of employment due to
          Disability, it will immediately terminate.

               d. Other.
        If (i) the Participant’s employment is terminated prior to the end
        of the term under any employment agreement between the Company and the
        Participant other than as a result of the Participant’s death or
        Disability and other than for Cause or due to a Change in Control, (ii)
        the Participant’s employment is terminated by the Participant other
        than for Good Reason, (iii) the Participant’s employment agreement
        is not renewed by the Participant at the end of its initial term, or
        (iv) the Company provides notice to the Participant that his employment
        agreement will not be renewed, any portion of the ISO that has not vested
        shall expire as of the termination date or nonrenewal date, and any unexercised
        portion of a vested ISO shall remain exercisable for a period of three
        (3) months after the termination date, the date of nonrenewal or the
    expiration of the ISO, whichever is earlier.

	 	 
	
6.	
Provisions of Plan Control. This Award Agreement is subject to all the terms, conditions and provisions of the Plan, including, without limitation, the amendment provisions
thereof, and to such rules, regulations and interpretations relating to the Plan as may be adopted by the Committee and as may be in effect from time to time. The Plan is incorporated herein by reference. If and to the extent that this Award
Agreement conflicts or is inconsistent with the terms, conditions and provisions of the Plan, the Plan shall control, and this Award Agreement shall be deemed to be modified accordingly, provided that to the extent the Plan provides the Committee
with discretion to determine the terms of the ISO the exercise of such discretion shall not be considered to be inconsistent with the terms of the Plan. This Award Agreement contains the entire understanding of the parties with respect to the
subject matter hereof and supersedes any prior agreements between the Company and the Participant with respect to the subject matter hereof.	
	 

	
7.	
Notices. All notices or other communications required or permitted to be given under this Award Agreement to the Company shall be in writing and shall be deemed to have been
duly given if delivered personally or mailed, postage pre-paid, as follows: (i) if to the Company, at its principal business address to the attention of the Secretary; and (ii) if to the Participant, at the last address of the Participant known to
the Company at the time the notice or other communication is sent.

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