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      EXECUTIVE
        EMPLOYMENT AGREEMENT

       

      EXECUTIVE
        EMPLOYMENT AGREEMENT
        (the
        "Agreement")
        made
        as of the 18th
        day of
        March, 2008 by and between ACURA
        PHARMACEUTICALS, INC.,
        a New
        York corporation (the "Corporation"),
        with
        administrative offices at 616 N. North Court, Suite 120, Palatine, IL 60067
        and
ROBERT
        JONES,
        residing at 20 Beekman Terrace, Summit, NJ 07901(the "Employee").

       

      W
        I T
        N E S S E T H

       

      WHEREAS,
        the
        Corporation desires to employ the Employee to engage in such activities and
        to
        render such services as are required under the terms and conditions hereof
        and
        the Board of Directors has authorized and approved the execution of this
        Agreement; and

       

      WHEREAS,
        the
        Employee desires to be employed by the Corporation under the terms and
        conditions hereinafter provided.

       

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

       

      	1.  	
              Employment,
                Duties and Acceptance.

            

       

      1.1 Services.
        Commencing on April 7, 2008 (the “Commencement Date”) the Corporation shall
        employ the Employee for the Term (as hereinafter defined in Section 2 hereof),
        to render exclusive and full-time paid services to the business and affairs
        of
        the Corporation as the Senior Vice President and Chief Operating Officer
        of the
        Corporation, subject to the direction of the Corporation's Chief Executive
        Officer ("CEO") and the Board of Directors of the Corporation, and, in
        connection therewith, commencing on the Commencement Date the Employee shall
        have all the duties and responsibilities customarily rendered by a Senior
        Vice
        President and Chief Operating Officer, and as may be further reasonably and
        customarily directed or requested to be performed by the CEO, to whom the
        Employee shall report, or the Board of Directors, and to use his commercially
        reasonable best efforts, skill and abilities to promote the interests of
        the
        Corporation and its subsidiaries. The Employee shall perform the services
        as
        Senior Vice President and Chief Operating Officer at his home office as
        well
        as by traveling to the Corporation's Culver, Indiana facility and Palatine,
        Illinois offices and such other locations as shall be designated by the CEO
        or
        the Board of Directors from time to time, including, without limitation,
        the
        locations of contract research organizations, clinical trial sites, and such
        other locations as shall be required for meetings or presentations with
        prospective investors, counsel, prospective partners and other locations
        as the
        CEO or the Board of Directors shall determine to be in the best business
        interests of the Corporation. 

       

      
        
          
          

        

        
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      1.2
         Acceptance.
        The
        Employee hereby accepts such employment and agrees to render the services
        described in Section 1.1 hereof.

       

      2. Term
        of Employment.
        The
        term of the Employee’s employment under this Agreement shall commence on the
        Commencement Date of this Agreement and shall expire on December 31, 2009
        (the
“Initial
        Term”),
        unless sooner terminated pursuant to Section 7 of this Agreement; provided,
        however,
        that
        the term
        of the Employee’s employment hereunder shall automatically be extended for
        successive one (1) year periods (each, a “Renewal
        Period”
and
        together with the Initial Term, the “Term”)
        unless
        either the Corporation or the Employee provides written notice of non-renewal
        of
        the Employee’s employment with the Corporation ninety (90) days prior to the
        expiration of the Initial Term or any Renewal Period. The expiration of the
        Initial Term or any Renewal Period pursuant to the Corporation’s provision of a
        written notice of non-renewal as provided in this Section 2 shall not be
        deemed
        a termination of Employee’s employment. 

       

      
        
          
          

        

        
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      3. Compensation.
        In
        consideration of the services to be rendered by the Employee pursuant to
        this
        Agreement, the Employee shall receive from the Corporation the following
        compensation:

       

      (a) Base
        Salary.
        The
        Corporation shall pay the Employee an aggregate base salary at the initial
        annual rate of $290,000 (the "Base
        Salary"),
        commencing on the Commencement Date and payable in equal bi-weekly installments,
        less such deductions or amounts to be withheld as shall be required by
        applicable laws and regulations. The Employee’s Base Salary shall be reviewed at
        least annually and be subject to increase by the Board of Directors of the
        Corporation, in its sole and absolute discretion.

       

      (b) Annual
        Bonus.
        During
        the Term, the Employee will be eligible to receive from the Corporation an
        annual bonus (the “Bonus”)
        in the
        amount of up to thirty percent (30%) of the Employee’s then current annual Base
        Salary during the fiscal year (or portion thereof) for which the Bonus may
        be
        awarded. The Bonus will be based upon the achievement of such targets,
        conditions or parameters (the “Bonus
        Criteria”)
        as
        will be agreed upon by the Employee and the Board of Directors or the
        Compensation Committee of the Board of Directors of the Corporation within
        (i)
        sixty (60) days of the date of this Agreement, in the case of the first fiscal
        year of the Initial Term, and (ii) sixty (60) days of (before or after) the
        beginning of each fiscal year thereafter. The Bonus shall be paid at the
        same
        time as the bonuses are paid to other executive officers, but in any event
        within seventy five (75) days following the end of the Corporation’s fiscal
        year.

       

      
        
          
          

        

        
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      4. Expenses.

       

      The
        Corporation shall pay or reimburse the Employee for all reasonable expenses
        which are in accordance with the Corporation’s expense policy in force from time
        to time and which are actually incurred or paid by the Employee during the
        Term
        in the performance of his services under this Agreement, upon presentation
        of
        expense statements or vouchers or such other supporting information as the
        Corporation may reasonably require. Such expenses shall include, but not
        be
        limited to, business travel, travel to corporate facilities and related
        temporary living expenses, meals and lodging, and business entertainment.
        Such
        expenses shall also include fees and expenses associated with membership
        in
        various business and civic associations, approved
        in advance by the Compensation Committee of the Board of Directors of the
        Corporation, in which the Employee’s participation is in the Corporation’s best
        interest. 

       

      5. Additional
        Benefits.

       

      (a) In
        General.
        In
        addition to the compensation and expenses to be paid under Sections 3 and
        4
        hereof, the Employee will be entitled to such rights and benefits for which
        he
        may be eligible under any insurance, profit-making, incentive, bonus, stock
        option, stock grant or pension or retirement plan of the Corporation as the
        Board of Directors shall adopt from time to time in its sole and absolute
        discretion for the benefit of senior executives or employees generally of
        the
        Corporation.

       

      (b) Stock
        Options.
        (i)
        Upon the Commencement Date, the Employee shall be granted stock options to
        purchase 30,000 shares of the Corporation’s common stock, $.01 par value per
        share (the "Employment
        Date Option")
        at an
        exercise price per share equal to the last sale price of the Corporation’s
        common stock on the trading day immediately preceding the Commencement Date,
        as
        reported by the NASDAQ Capital Market. The Employment Date Option shall vest
        and
        be exercisable at the rate of 1,500 shares on the last day of each calendar
        month beginning May 31, 2008. The Employment Date Option shall have a ten
        (10)
        year term, subject to earlier termination as set forth in Section 7 upon
        the
        termination of the Employee’s employment with the Corporation and shall be
        evidenced by the Stock Option Agreement substantially in the form of
Exhibit
        A
        hereto.
        The Employee and the Corporation agree that the Employment Date Option is
        issued
        pursuant to the Corporation’s 1998 Stock Option Plan, as amended. The
        Corporation shall use commercially reasonable best efforts to maintain the
        effectiveness of its Registration Statement on Form S-8 relating to the 1998
        Stock Option Plan as filed with the Securities and Exchange
        Commission.

       

      
        
          
          

        

        
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      (ii) The
        Employee will also be eligible in the future to receive option grants based
        on
        performance or on achievement milestones as determined by the Board of Directors
        or the Compensation Committee. 

       

      (iii) The
        Employment Date Option and any other stock option granted to the Employee
        by the
        Corporation during the Term are referred to herein collectively as the
“Options”.

       

      (c) Restricted
        Stock Units.
        (i)
        Upon the Commencement Date, the Corporation shall grant to the Employee a
        Restricted Stock Unit Award Agreement in the form of Exhibit
        B
        hereto
        which, subject to its terms and the terms of the Corporation’s 2005 Restricted
        Stock Unit Award Plan, provides for the Corporation’s issuance of up to Fifty
        Thousand (50,000) shares of the Corporation’s common stock, $.01 par value per
        share (the “Employment
        Date Restricted
        Stock Units”).
        The
        Employment Date Restricted Stock Units shall vest at the rate of 2,500
        restricted stock units on the last day of each calendar month commencing May 31,
        2008. Notwithstanding anything to the contrary contained in this Employment
        Agreement, the grant, vesting and distribution relating to the Employment
        Date
        Restricted Stock Units will be governed solely by Corporation’s 2005 Restricted
        Stock Unit Award Plan and the Restricted Stock Unit Award Agreement attached
        as
Exhibit
        B
        hereto
        between the Corporation and the Employee. The Corporation shall use commercially
        reasonable best efforts to maintain the effectiveness of the Registration
        Statement on Form S-8 relating to the 2005 Restricted Stock Unit Award Plan
        as
        filed with the Securities and Exchange Commission.

       

      
        
          
          

        

        
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      (ii) The
        Employment Date Restricted Stock Units and any other restricted stock units
        granted to the Employee by the Corporation during the Term are referred to
        herein collectively as the “Restricted
        Stock Units”. 

       

      6. Vacation.
        The
        Employee shall be entitled to four (4) weeks of vacation during each year
        of the
        Term, to be taken at a time or times mutually agreed upon by the Employee
        and
        the Corporation; provided, however, that not more than one (1) week of such
        vacation period may be carried over to the year immediately following the
        year
        in which such vacation was to be taken, unless otherwise required by applicable
        law. 

       

      7. Termination.

       

      7.1
         Death.
        If
        during the Term the Employee shall die, the Employee’s employment under this
        Agreement shall terminate as of the date of the Employee's death. Upon such
        termination under this Section 7.1 the Corporation shall pay to or for the
        benefit of the Employee to such person or persons as the Employee shall
        designate by notice to the Corporation from time to time or, in the absence
        of
        such designation, the Employee’s spouse (the “Employee’s
        Designees”),
        in a
        lump sum in cash within thirty (30) days from the date of the Employee's
        death
        (a) the accrued but unpaid portion of the Base Salary payable hereunder,
        and (b) any accrued and unpaid vacation. Additionally, notwithstanding any
        language to the contrary contained in any option agreements with the Employee,
        the Employee's Designees shall be entitled to exercise the Employee’s vested
        option shares during the twelve (12) months following the date of termination
        under this Section 7.1. At the expiration of such twelve (12) month period,
        the
        Options shall terminate.

       

      
        
          
          

        

        
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      7.2
         Disability.
        In the
        event of the Employee’s "mental or physical disability" (as defined herein)
        which continues for (i) a period of longer than sixty (60) consecutive
        days, or (ii) such periods aggregating one hundred twenty (120) days during
        any 365 consecutive days, such that the Employee is, despite reasonable
        accommodation, unable to substantively perform the essential functions of
        his
        position for said periods, the determination of which shall be confirmed
        by the
        Board of Directors in the manner hereinafter provided, this Agreement shall
        terminate upon thirty (30) days' prior written notice to the Employee from
        the
        Corporation (the "Disability
        Termination Date").
        The
        Corporation shall continue to pay to the Employee during the period of his
        mental or physical disability the Base Salary provided in Section 3 of this
        Agreement as well as provide the benefits described herein; provided, however,
        that the Base Salary shall be reduced by any disability insurance payments
        paid
        to the Employee by a policy paid for by the Corporation. On the Disability
        Termination Date, (a) the Employee’s Base Salary shall cease, and
        (b) the Corporation shall pay to the Employee, in a lump sum in cash, any
        accrued and unpaid vacation. Additionally, notwithstanding any language to
        the
        contrary contained in any option agreements with the Employee, the Employee's
        Designees shall be entitled to exercise his vested option shares for twelve
        (12)
        months following the date of termination under this Section 7.2. At the
        expiration of such twelve (12) month period, the Options shall
        terminate.

       

      
        
          
          

        

        
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      As
        used
        herein, the term "mentally
        or physically disabled"
        shall
        have the meaning ascribed thereto in the Corporation’s disability insurance
        policy then in force and effect for the Employee or, if no such disability
        policy then exists, it shall mean the inability of the Employee, by reason
        of
        physical or mental injury, illness or other similar cause to perform the
        essential functions of his duties and responsibilities in connection with
        the
        conduct of the business and affairs of the Corporation as determined by a
        reputable physician of the Corporation’s selection. The Employee hereby consents
        to, and agrees to make himself available for, such examination.

       

      7.3
         Termination
        For Cause.
        The
        Corporation may at any time during the Term, by written notice, and after
        affording the Employee the opportunity to be heard in person by the Board
        of
        Directors, terminate this Agreement and discharge the Employee for "Cause",
        whereupon the Corporation's obligation to pay compensation or any other amounts
        payable hereunder to or for the benefit of the Employee shall terminate on
        the
        date of such discharge except for accrued and unpaid Base Salary and expenses
        to
        the date of discharge. For purposes of this Agreement, the term "Cause" shall
        mean: (i) any act of the Employee’s constituting willful misconduct which
        is materially detrimental to the Corporation’s best interests, including
        misappropriation of, or intentional damage to, the funds, property or business
        of the Corporation; (ii) conviction of a felony or of a crime involving
        moral turpitude or conviction of any crime involving dishonesty or fraud
        with
        respect to the Corporation or any of its affiliates; (iii) material failure
        of the Employee to perform his duties in accordance with this Agreement after
        written notice to the Employee by the Board of Directors specifying such
        failure
        and giving the Employee fourteen (14) days to correct the defects in
        performance; or (iv) breach by the Employee of any material provision hereof
        which, if capable of remedy, remains unremedied for more than fourteen (14)
        days
        after written notice. In the event the Employee is terminated by the Corporation
        for Cause or if the Employee resigns other than for Good Reason (as defined
        in
        Section 7.5), the Employee shall be entitled to exercise (i) the vested portion
        of the Options within forty (40) days of such termination or resignation.
        At the
        expiration of such ninety (90) day exercise period, the unexercised Options
        shall terminate.

       

      
        
          
          

        

        
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      7.4
         Termination
        Without Cause.
        The
        Corporation may terminate the Employee's employment with the Corporation
        at any
        time "without Cause", upon thirty (30) days' written notice to the Employee.
        A
        termination "without
        Cause"
        shall
        mean a termination of the Employee's employment other than due to death,
        disability or for Cause as provided in Sections 7.1, 7.2, and 7.3, respectively.
        

       

      7.5 Termination
        By the Employee For Good Reason.
        The
        Employee may terminate his employment for "Good
        Reason",
        upon
        thirty (30) days' written notice to Corporation. "Good
        Reason"
        shall
        mean a termination of employment by the Employee following, without the
        Employee's express prior written consent: (i) any material diminution in
        the Employee's duties, status, offices, reporting requirements, or job title,
        except in connection with termination of the Employee's employment for Cause
        as
        provided in Section 7.3 or death or disability as provided in Sections 7.1
        and
        7.2; (ii) the failure of the Corporation timely to pay the Employee's
        salary, bonus or benefits due the Employee or any material breach by the
        Corporation of this Agreement, in each case within ten
        (10)
        days of the Corporation's receipt of written notice from the Employee to
        that
        effect, which remains uncured at the end of such ten (10) day period;
        (iii) any change in the Corporation's pay plan or employment agreement with
        the Employee that results in a material diminution of the Employee's annual
        Base
        Salary or eligible Bonus amounts; (iv) notice by the Corporation to not renew
        this Agreement pursuant to Section 2, or (v) the failure of the Corporation
        to obtain an agreement from any successor to the Corporation to assume and
        agree
        to perform this Agreement.

       

      
        
          
          

        

        
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          7.6 
            Payment,
            Benefits and Stock Options Upon Termination Without Cause Or For Good
            Reason. 

        

      

      

      (a) Cash
        Payments and Severance.
        In the
        event of a termination by the Corporation of the Employee's employment with
        the
        Corporation without Cause or a termination by the Employee of his employment
        with the Corporation for Good Reason, during the Term, the Corporation shall
        pay
        to the Employee, 

      (i)
        each
        of the following amounts:

      

      
        	 	
                (x)
                  

              	
                the
                  Employee’s accrued and unpaid Base Salary through and including the date
                  of termination;

              

      

      

      
        	 	
                (y)
                  

              	
                the
                  Employee’s then accrued and unused vacation through and including the date
                  of termination; and 

              

      

      

      
        	 	
                (z)

              	
                the
                  Employee’s then accrued and unpaid Bonus for such year, calculated by
                  pro-rating the annual Bonus, which would have been payable to the
                  Employee
                  but for his termination and assuming full achievement of the Bonus
                  Criteria for such year, based on the number of days that the Employee
                  remained in the employ of the Corporation during the year for which
                  the
                  Bonus is due;

              

      

      

      The
        payments provided in subsections (x), (y) and (z) above, shall be paid in
        a
        single lump sum in cash within thirty (30) days after the date of termination;
        and 

      

      
        	
              	(ii)	
                one
                  (1) year of the Employee's Base Salary in effect immediately prior
                  to the
                  date of termination (”Severance
                  Pay”).
                  The amount of such Severance Pay together with the payment under
                  7.6(a)(i)(z) that does not exceed the Applicable Limit, shall be
                  paid in
                  equal monthly installments over the Severance Period (as defined
                  in
                  Section 7.6(b)). To the extent the Severance Pay together with
                  the payment
                  under Section 7.6(a)(i)(z) exceeds the Applicable Limit, (A) one-half
                  of
                  the amount exceeding the Applicable Limit shall be paid six months
                  and one
                  day after the date of termination, and (B) one-half of the amount
                  exceeding the Applicable Limit shall be paid in six equal monthly
                  installments commencing with the seventh month after the date of
                  termination. The Applicable Limit is the amount which may not be
                  exceeded
                  as specified in Treas. Reg. 1-.409A-1(b)(iii)(A) (generally the
                  lesser of
                  $450,000 (for 2007) and two times Employee’s compensation).
                  

              

      

       

      
        
          
          

        

        
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      (b) Benefits.
        In
        addition, the Employee shall be entitled to any benefits under any employee
        benefit plans, and for twelve (12) months from the date of termination
        (“Severance
        Period”),
        the
        Employee will, at the Employee’s option, (i) continue to receive all
        benefits to which he was entitled pursuant to Section 5(a) of this Agreement
        as
        of the date of termination including continued medical, dental, disability,
        and
        life insurance coverage for the Employee and the Employee's family, on terms
        substantially as in effect on the date of termination, subject to the payment
        by
        the Employee of all applicable employee contributions, or (ii) receive a
        payment in cash following his termination without Cause or for Good Reason
        representing the value of such continued benefits, plus any income tax payable
        by the Employee on such value. The amount provided in subsection (ii) shall
        be
        paid (A) in a single lump sum payment within thirty (30) days of the date
        of
        termination if such termination is by the Corporation without Cause, and
        (B) in
        a single lump sum payment six months and one day following the date of
        termination if such termination is by the Employee for Good Reason. If the
        Employee elects option (i) above and for any reason at any time the Corporation
        is unable to treat the Employee as being or having been an employee of the
        Corporation under any benefits plan in which he is entitled to participate
        and
        as a result thereof the Employee receives reduced benefits under such plan
        during the period that the Employee is continuing to receive payments pursuant
        to this Section 7.6(b), then the Corporation shall provide the Employee with
        such benefits by direct payment or, at the Corporation’s option, by making
        available equivalent benefits from other sources. During the Severance Period,
        the Employee shall not be entitled to receive salary and/or benefits except
        as
        provided herein and shall not be entitled to participate in any employee
        benefit
        plan of, or receive any other benefit from, the Corporation that is introduced
        after the date of termination, except that an appropriate adjustment shall
        be
        made if such new employee benefit or employee benefit plan is a replacement
        for
        or amendment to an employee benefit or employee benefit plan in effect as
        of the
        date of termination.

       

      
        
          
          

        

        
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      (c) Stock
        Options.
        In the
        event of a termination of the Employee's employment with the Corporation
        without
        Cause or a termination by the Employee of his employment with the Corporation
        for Good Reason, during the Term, the Corporation shall accelerate fully
        the
        vesting of any outstanding Option granted to the Employee. In connection
        therewith, the Corporation shall cause all restrictive legends, stop transfer
        orders or similar restrictions to be removed from such shares, except as
        required by applicable law. Additionally, notwithstanding any language to
        the
        contrary contained in any Option agreements with the Employee, the Employee
        shall be entitled to exercise his vested Option shares for twelve (12) months
        following the date of termination without Cause or resignation for Good Reason.
        At the expiration of such twelve (12) month period, all Options shall
        terminate.

       

      (d) Restricted
        Stock Units.
        The
        terms of the Corporation’s 2005 Restricted Stock Unit Award Plan and the
        Restricted Stock Unit Award Agreements between the Corporation and the Employee
        issued pursuant to the 2005 Restricted Stock Unit Award Plan shall govern
        the
        vesting and distribution relating to any Restricted Stock Units.

       

      7.7  Change
        of Control.
        In the
        event that (i) a Change of Control (as hereinafter defined) occurs during
        the Term
        and
        (ii) the Employee's employment with the Corporation is terminated by the
        Corporation without Cause or the Employee resigns or terminates his employment
        hereunder for Good Reason, the Employee shall be entitled to the accrued
        salary,
        unused vacation, bonus, Severance Pay, benefits, and stock option treatment
        as
        are provided in Sections 7.6(a), (b), and (c) above, except,
        that
        the Severance Pay shall be payable in a lump sum in cash (x) within thirty-one
        (31) days after the date of such termination; provided such termination occurs
        within two years after the Change of Control and such Change of Control meets
        the requirements for a “change of control” under
        Section 409A of the Code, or (y) six months and one day after such termination
        if the requirements of subsection (x) are not met.
        The
        Employee shall give the Corporation not less than sixty (60) days' prior
        written
        notice of a termination of employment with the Corporation following a Change
        of
        Control transaction if the Employee is terminating for Good Reason.
        Notwithstanding any language to the contrary contained in any Option agreement
        with the Employee, the Employee shall be entitled to exercise his vested
        Option
        shares for twelve (12) months following the date of termination without Cause
        or
        resignation for Good Reason. At the expiration of such twelve (12) month
        period,
        all Options shall terminate. 

       

      
        
          
          

        

        
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      For
        purposes of this Section 7.7, the term "Change
        of Control"
        means
        the occurrence of any of the following, in one or a series of related
        transactions: (v) the sale or transfer of fifty percent (50)% or more of
        the Outstanding Shares of the Corporation to any person or entity other than
        (i)
        a transfer to a wholly-owned subsidiary of the Corporation, or (ii) a transfer
        by a holder or holders of the Corporation's common stock or convertible
        securities as of the date hereof to Affiliates (as defined below); or
        (w) the sale, lease or other transfer of all or substantially all of the
        assets or earning power of the Corporation to any person or entity other
        than (i) to a wholly-owned subsidiary of the Corporation, (ii) to an Affiliate
        whereby the purpose or effect of such transfer is to provide for the transfer
        by
        a holder or holders of the Corporation’s common stock or convertible securities
        as of the date hereof of such holders’ direct or indirect interests in the
        assets of the Corporation to Affiliates and so long as such transfer does
        not
        result in a transaction described by one of the other clauses of this paragraph
        of Section 7.7, or (iii) the license of all or any portion of the Corporation’s
        Aversion® Technology, in one or more transactions; or (x) merger,
        consolidation, reorganization, recapitalization, share exchange, business
        combination or a similar transaction which results in any person or entity
        (other than the persons who are shareholders or security holders of the
        Corporation immediately prior to such transaction (or their Affiliates as
        of the
        date of such transaction)) owning fifty percent (50%) or more of the Outstanding
        Shares or combined voting power of the Corporation; or (y) merger,
        consolidation, reorganization, business combination or a similar transaction
        in
        which the Corporation is not the surviving entity; or (z) a transaction commonly
        known as “going private” whereby the Corporation engages one or a series of
        transactions which results in the Corporation not being required to file
        periodic reports with the Securities and Exchange Commission, unless the
        Employee is a participant in such transaction. "Outstanding
        Shares"
        shall
        mean the total number of common shares and common share equivalents of the
        Corporation outstanding at the time the Change of Control, including, without
        limitation, shares of common stock underlying debentures, preferred stock,
        options, warrants and other convertible securities. "Affiliate"
        shall
        mean (i) any person or entity controlling, controlled by or under the common
        control of the existing holders of common stock or convertible securities
        of the
        Corporation and (ii) any partner, shareholder or member of the existing holders
        of common stock or convertible securities of the Corporation. For the purposes
        hereof, “control”
shall
        mean the direct or indirect ownership of at least fifty (50%) percent of
        the
        outstanding shares or other voting rights of the subject entity or if it
        possesses, directly or indirectly, the power to direct or cause the direction
        of
        management and policies of such other entity.

       

      
        
          
          

        

        
          13

          
            

          

        

        
          
          

        

      

       

      In
        the
        event that the Employee resigns or terminates his employment following a
        Change
        of Control as described above, the Employee acknowledges and agrees that
        upon
        the request of the Corporation, he will execute and deliver a release in
        customary form releasing all claims of the Employee arising out of his
        employment with the Corporation except for the obligations of the Corporation
        under this Agreement. 

       

      8. Protection
        of Confidential Information.
        In view
        of the fact that the Employee's work for the Corporation will bring him into
        close contact with all the confidential affairs thereof, and plans for future
        developments, the Employee agrees to the following:

       

      8.1
         Secrecy.
        During
        the Term and for five (5) years after the date of termination of the Employee’s
        employment, to preserve the confidential nature of, and not disclose, reveal,
        or
        make accessible to anyone other than the Corporation’s officers, directors,
        employees, consultants or agents, otherwise than within the scope of his
        employment duties and responsibilities hereunder, any and all documents,
        information, knowledge or data of or pertaining to the Corporation, its
        subsidiaries or affiliates, including, without limitation, the Aversion®
Technology, or pertaining to any other individual, firm, corporation,
        partnership, joint venture, business, organization, entity or other person
        with
        which the Corporation or any of its subsidiaries or affiliates may do business
        during the Term (including licensees, licensors, manufacturers, suppliers
        and
        customers of the Corporation or any of its subsidiaries or affiliates) and
        which
        is not in the public domain, including trade secrets, "know how", names and
        lists of licensees, licensors, manufacturers, suppliers and customers,
        development plans or programs, statistics, manufacturing and production methods,
        processes, techniques, pricing, marketing methods and plans, specifications,
        advertising plans and campaigns or any other matters, and all other confidential
        information of the Corporation, its subsidiaries and affiliates (hereinafter
        referred to as "Confidential
        Information").
        The
        restrictions on the disclosure of Confidential Information imposed by this
        Section 8.1 shall not apply to any Confidential Information that was part
        of the
        public domain at the time of its receipt by the Employee or becomes part
        of the
        public domain in any manner and for any reason other than an act by the
        Employee, unless the Employee is legally compelled (by applicable law,
        deposition, interrogatory, request for documents, subpoena, civil investigative
        demand or similar process) to disclose such Confidential Information, in
        which
        event the Employee shall provide the Corporation with prompt notice of such
        requirement so that the Corporation may seek a protective order or other
        appropriate remedy, and if such protective order or other remedy is not
        obtained, the Employee shall exercise reasonable efforts in good faith to
        obtain
        assurance that confidential treatment will be accorded such Confidential
        Information.

       

      
        
          
          

        

        
          14

          
            

          

        

        
          
          

        

      

       

      8.2
         Return
        Memoranda, etc.
        To
        deliver promptly to the Corporation on termination of his employment, or
        at any
        other time the Corporation may so request, all memoranda, notes, records,
        reports, manuals, drawings, blueprints and other documents (and all copies
        thereof) relating to the Corporation's business and all property associated
        therewith, which the Employee may then possess or have under his
        control.

       

      8.3
         Non-competition.
        Provided that this Agreement has not been breached by the Corporation, the
        Employee agrees that he shall not at any time prior to one (1) year after
        the
        expiration or termination of his employment with the Corporation, own, manage,
        operate, be a director or an employee of, or a consultant to any person,
        business, corporation, partnership, trust, limited liability company or other
        firm or enterprise ("Person")
        which
        is engaged in marketing, selling or distributing products or in developing
        product candidates in the United States which contain technology meant to
        achieve all or some of the same effects as the Corporation’s Aversion®
Technology and are directly competitive with: (a) the Corporation’s products or
        product candidates in development or (b) its licensee’s products or product
        candidates in development that contain Aversion® Technology. For avoidance of
        doubt, product candidates are as evidenced by the current written product
        development plan and/or business plan of the Corporation at the time of
        termination of the Employee's employment and/or described in the Corporation’s
        most recent filing on Form 10-K with the Securities and Exchange Commission
        as
        of the date of the termination of the Employee’s employment. 

       

      
        
          
          

        

        
          15

          
            

          

        

        
          
          

        

      

       

      If
        any of
        the provisions of this section, or any part thereof, is hereinafter construed
        to
        be invalid or unenforceable, the same shall not affect the remainder of such
        provision or provisions, which shall be given full effect, without regard
        to the
        invalid portions. If any of the provisions of this section, or any part thereof,
        is held to be unenforceable because of the duration of such provision, the
        area
        covered thereby or the type of conduct restricted therein, the parties agree
        that the court making such determination shall have the power to modify the
        duration, geographic area and/or other terms of such provision and, as so
        modified, said provision shall then be enforceable. In the event that the
        courts
        of any one or more jurisdictions shall hold such provisions wholly or partially
        unenforceable by reason of the scope thereof or otherwise, it is the intention
        of the parties hereto that such determination not bar or in any way affect
        the
        Corporation's right to the relief provided for herein in the courts of any
        other
        jurisdictions as to breaches or threatened breaches of such provisions in
        such
        other jurisdictions, the above provisions as they relate to each jurisdiction
        being, for this purpose, severable into diverse and independent
        covenants.

       

      
        
          
          

        

        
          16

          
            

          

        

        
          
          

        

      

       

      8.4
         Injunctive
        Relief.
        The
        Employee acknowledges and agrees that, because of the unique and extraordinary
        nature of his services, any breach or threatened breach of the provisions
        of
        Sections 8.1, 8.2, or 8.3 hereof will cause irreparable injury and incalculable
        harm to the Corporation, and the Corporation shall, accordingly, be entitled
        to
        injunctive and other equitable relief for such breach or threatened breach
        and
        that resort by the Corporation to such injunctive or other equitable relief
        shall not be deemed to waive or to limit in any respect any right or remedy
        which the Corporation may have with respect to such breach or threatened
        breach.

       

      8.5
         Expenses
        of Enforcement of Covenants.
        In the
        event that any action, suit or proceeding at law or in equity is brought
        to
        enforce the covenants contained in Section 8.1, 8.2 or 8.3, hereof or to
        obtain
        money damages for the breach thereof, the party prevailing in any such action,
        suit or other proceeding shall be entitled upon demand to reimbursement from
        the
        other party for all expenses (including, without limitation, reasonable
        attorneys' fees and disbursements) incurred in connection
        therewith.

       

      8.6
         Non-Solicitation.
        The
        Employee covenants and agrees not to (and not to cause or direct any Person
        to)
        hire or solicit for employment any employee of the Corporation or any of
        its
        subsidiaries or affiliates. The prohibitions of this Section 8.6 shall apply
        (i) for six (6) months following the termination of the Employee’s
        employment by the Corporation without Cause or by the Employee for Good Reason,
        prior to a Change of Control, (ii) for twelve (12) months following the
        termination of the Employee’s employment for Cause, prior to a Change of
        Control, or (iii) for twenty-four (24) months following a Change of
        Control.

       

      
        
          
          

        

        
          17

          
            

          

        

        
          
          

        

      

       

      8.7
         Assignment
        of Invention.
        All
        discoveries, inventions, improvements and innovations, whether patentable
        or not
        (including all data and records pertaining thereto), which Employee may invent,
        discover, originate or conceive during the Term of this Agreement and which
        directly relate to the business of the Corporation or any of its subsidiaries
        as
        described in the Corporation’s filings with the Securities and Exchange
        Commission, shall be the sole and exclusive property of the Corporation.
        Employee shall promptly and fully disclose each and all such discoveries,
        inventions, improvements or innovations to the Corporation. Employee shall
        assign to the Corporation his entire right, title and interest in and to
        all of
        his discoveries, inventions, improvements and innovation described in this
        Section 8.7 and any related U.S. or foreign patent and patent applications,
        shall execute any instruments reasonably necessary to convey or perfect the
        Corporation’s ownership thereof, and shall assist the Corporation in obtaining,
        defending and enforcing its rights therein. The Corporation shall bear all
        expenses it authorizes to be incurred in connection with such activity and
        shall
        pay the Employee reasonable compensation for time spent by the Employee in
        performing such duties at the request of the Corporation after the termination
        of his employment, for a period not to exceed three (3) years.

       

      9. Indemnification.
        The
        Corporation will defend, indemnify and hold harmless the Employee, to the
        maximum extent permitted by applicable law and the by-laws of the Corporation,
        against all claims, costs, charges and expenses incurred or sustained by
        him in
        connection with any action, suit or other proceeding to which he may be made
        a
        party by reason of his being an officer, director or employee of the Corporation
        or of any subsidiary or affiliate thereof. Furthermore, the Corporation hereby
        represents that it will maintain during the Term, Directors and Officers
        insurance coverage in the amount of at least Five Million Dollars ($5,000,000),
        provided that such five million dollars is payable exclusively for claims
        against the directors and officers of the Corporation and not for claims
        against
        the Corporation. 

       

      
        
          
          

        

        
          18

          
            

          

        

        
          
          

        

      

       

      10. Warranties.

       

      The
        Employee hereby warrants that as of the date hereof the Employee is not employed
        (other than by the Corporation) and is not a party to any other employment
        contract, express or implied. The Employee warrants that he has no other
        obligation, contractual or otherwise, which would prevent him from accepting
        the
        Corporation’s offer of employment under the terms of this Agreement and from
        complying with its provisions. The Employee warrants that he will not utilize
        during his employment hereunder any confidential information obtained through
        or
        in connection with his prior employment. The Employee warrants that he knows
        of
        no reason why he would not be able to perform his obligations under this
        Agreement. The Employee warrants that he has duly executed and delivered
        this
        Agreement and it is valid, binding and enforceable against the Employee in
        accordance with its terms. 

       

      The
        Corporation warrants to the Employee that this Agreement has been duly approved
        and authorized by its Board of Directors, that this Agreement has been duly
        executed and delivered on behalf of the Corporation and that this Agreement
        is
        valid, binding and enforceable against the Corporation in accordance with
        its
        terms.

       

      11. Notices.

       

      All
        notices, requests, consents and other communications required or permitted
        to be
        given hereunder, shall be in writing and shall be deemed to have been duly
        given
        if delivered personally or sent by facsimile, with confirmation of receipt,
        or
        mailed first-class, postage prepaid, by registered or certified mail (notices
        sent by mail shall be deemed to have been given three (3) business days after
        the date sent), to the parties at their respective addresses herein above
        set
        forth or to such other address as either party shall designate by notice
        in
        writing to the other in accordance herewith.

       

      
        
          
          

        

        
          19

          
            

          

        

        
          
          

        

      

       

      12. General.

       

      12.1
         Governing
        Law.
        This
        Agreement shall be governed by and construed and enforced in accordance with
        the
        local laws of the State of New York applicable to agreements made and to
        be
        performed entirely in New York. 

       

      12.2
         Captions.
        The
        section headings contained herein are for reference purposes only and shall
        not
        in any way affect the meaning or interpretation of this Agreement.

       

      12.3
         Entire
        Agreement.
        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.

       

      12.4
         Assignability.
        This
        Agreement, and the Employee's rights and obligations hereunder, may not be
        assigned by the Employee. The Corporation 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; in any
        event
        the rights and obligations of the Corporation hereunder shall be binding
        on its
        successors or assigns, whether by merger, consolidation or acquisition of
        all or
        substantially all of its business or assets.

       

      12.5
         Amendment.
        This
        Agreement may be amended, modified, superseded, canceled, renewed or extended
        and the terms or covenants hereof may be waived, only by a written instrument
        executed by both of the parties hereto, or in the case of a waiver, by the
        party
        waiving compliance. No superseding instrument, amendment, modification,
        cancellation, renewal or extension hereof shall require the consent or approval
        of any person other than the parties hereto. The failure of either party
        at any
        time or times to require performance of any provision hereof shall in no
        manner
        affect the right at a later time to enforce the same. No waiver by either
        party
        of the breach of any term or covenant contained in this Agreement, whether
        by
        conduct or otherwise, in any one or more instances, shall be deemed to be,
        or
        construed as, a further or continuing waiver of any such breach, or a waiver
        of
        the breach of any other term or covenant contained in this
        Agreement.

       

      
        
          
          

        

        
          20

          
            

          

        

        
          
          

        

      

       

      12.6
         Counterparts.
        This
        Agreement may be executed in one or more facsimile or original counterparts,
        each of which shall be deemed an original, but all of which taken together
        will
        constitute one and the same instrument.

       

      12.7
         Severability.
        The
        provisions of this Agreement shall be deemed severable, and if any part of
        any
        provision is held illegal, void or invalid under applicable law, such provision
        may be changed to the extent reasonably necessary to make the provision,
        as so
        changed, legal, valid and binding. If any provision of this Agreement is
        held
        illegal, void or invalid in its entirety, the remaining provisions of this
        Agreement shall not in any way be affected or impaired but shall remain binding
        in accordance with their terms.

       

      [SIGNATURE
        PAGE TO FOLLOW]

      
        
          
          

        

        
          21

          
            

          

        

        
          
          

        

      

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

      

      

        
          	
                  ATTEST:

                	
                  ACURA
                    PHARMACEUTICALS, INC.

                
	 	 
	 	 
	 	 
	
                  _________________________

                	
                  By:    /s/
                    Peter Clemens    

                
	
                   

                	 
	 	
                   

                
	 	 
	 	 
	
                  WITNESS:

                	
                  EMPLOYEE

                
	 	 
	 	 
	 	 
	
                  ___________________________

                	
                  By:    /s/
                    Robert Jones    

                
	 	
                        Robert
                    Jones
                    

                

        

      

       

      
        
          
          

        

        
          22

          
            

          

        

        
          
          

        

      

      

      EXHIBIT
        A

      

      ACURA
        PHARMACEUTICALS, INC.

      

      STOCK
        OPTION AGREEMENT

      

      

      ACURA
        PHARMACEUTICALS, INC., a New York corporation (the "Company"),
        hereby grants Robert
        B. Jones
        (the
        "Optionee"),
        an
        option (the “Option”)
        to
        purchase Thirty Thousand (30,000) shares (the "Shares")
        of the
        Company's common stock,$.01 par value per share ("Common
        Stock"),
        at
        the price set forth in Paragraph 2 hereof, and in all respects subject to
        the
        terms, definitions and provisions of the Company’s 1998 Stock Option Plan, as
        amended (the "Plan"),
        a
        copy of which is attached hereto as Exhibit
        A
        and
        incorporated herein by reference. Terms not defined shall have the meanings
        set
        forth in the Plan. In the event of any conflict, between the terms of this
        Agreement and the Plan, the terms of the Plan shall control.

      

      1.
        NATURE
        OF OPTION.
        This
        Option is intended to qualify as an Incentive Stock Option as defined in
        Section
        422 of the Internal Revenue Code of 1986, as amended (the "Code").
        To
        the extent the limits of Code Section 422(d) are exceeded, this Option shall
        be
        deemed a non-Incentive Stock Option. 

      

      2.
        EXERCISE
        PRICE.
        The
        exercise price of the Shares shall be ____ Dollars and _____ Cents ($___)
        per
        share of Common Stock subject to this Option, which is equal to the last
        sale
        price of the Common Stock on the trading day immediately preceding the
        Commencement Date (as defined in the Executive Employment Agreement between
        the
        Optionee and the Company dated March 18, 2008), as reported by the NASDAQ
        Capital Market.

      

      3.
        EXERCISE
        OF OPTION.
        This
        Option vested and shall be exercisable during its term as follows:

      

      (a) Vesting
        Period.

      

      This
        Option shall only vest and be exercisable to the extent of One Thousand Five
        Hundred (1,500) Shares on the last day of each calendar month commencing
        May 31,
        2008.

       

      (b)
        Method
        of Exercise.
        This
        Option shall be exercisable by written notice which shall state the election
        to
        exercise this Option, the number of Shares in respect of which the Option
        is
        being exercised, and such other representations and agreements as to the
        holder's investment intent with respect to such Shares of Common Stock as
        may be
        required by the Company pursuant to the provisions of the Plan. Such written
        notice shall be signed by the Optionee and shall be delivered in person or
        by
        certified mail to the President/Treasurer of the Company. The written notice
        shall be accompanied by payment of the Exercise Price pursuant to the provisions
        of Section 2 and Section 3(c). This Option may not be exercised for a fraction
        of a share.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      No
        Shares
        will be issued pursuant to the exercise of an Option unless such issuance
        and
        such exercise shall comply with all relevant provisions of law and the
        requirements of any stock exchange upon which the Shares may then be
        listed.

      
         

        (c)
          Method
          of Payment.
          Payment
          of the Exercise Price shall be by 

      

      

      	(i)  	
              cash;
                

            

      

      	(ii)  	
              check;
                

            

      

      	(iii)  	
              promissory
                note, provided (A) such method of payment shall have been approved
                by the
                Board of Directors of the Company as an accepted method of payment,
                and
                (B) such promissory note shall be full recourse as to principal and
                interest and shall bear interest at the market rate, which market
                rate
                shall be equal to the rate of interest available to the Optionee
                in a
                third party arms-length loan transaction of similar nature and amount;
                

            

      

      	(iv)  	
              shares
                of the Company's Common Stock, provided (A) such method of payment
                shall
                have been approved by the Board of Directors of the Company as an
                accepted
                method of payment, and (B) such shares of Common Stock have held
                by the
                Optionee for at least six (6) months prior to being surrendered,
                as
                consideration for the Shares to be issued upon exercise of an Option
                and
                having a Fair Market Value on the date of surrender equal to the
                aggregate
                exercise price of the Shares as to which the Option shall be exercised;
                or

            

      

      	(v)  	
              any
                combination of such payment methods.

            

      

      4.
        RESTRICTIONS
        ON EXERCISE.
        This
        Option may not be exercised if the issuance of such Shares upon such exercise
        or
        the method of payment of consideration for such Shares would constitute a
        violation of any applicable federal or state securities or other law or
        regulation, including any rule under Part 207 of Title 12 of the Code of
        Federal
        Regulations ("Regulation
        G")
        as
        promulgated by the Federal Reserve Board. As a condition to the exercise
        of this
        Option, the Company may require the Optionee to make any representation and
        warranty to the Company as may be required by any applicable law or
        regulation.

      

      5.
        TERMINATION
        OF STATUS AS AN EMPLOYEE.
        Except
        as otherwise provided in Sections 6 and 7 below, if the Optionee ceases to
        serve
        as an Employee, he may, but only within the applicable time periods provided
        in
        his Employment Agreement with the Company dated March 18, 2008, exercise
        this
        Option to the extent that he was entitled to exercise it at the date of such
        termination. To the extent that he was not entitled to exercise this Option
        at
        the date of such termination, or if he does not exercise this Option within
        the
        time specified herein, this Option shall terminate.

      

      6.
        DISABILITY
        OF OPTIONEE.
        Notwithstanding the provisions of Section 5 above, if the Optionee is unable
        to
        continue his employment with the Company as a result of his total and permanent
        disability (within the meaning of Section 22(e)(3) of the Code), he may,
        but
        only within twelve (12) months from the date of termination of employment
        due to
        such disability, exercise this Option to the extent he was entitled to exercise
        it at the date of such termination. If he does not exercise this Option (which
        he was entitled to exercise) within the time specified herein, this Option
        shall
        terminate.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      7.
        DEATH
        OF OPTIONEE.
        In the
        event of the death of the Optionee:

      

      (a)
        during the term of this Option and while an Employee of the Company and having
        been in Continuous Status as an Employee since the Grant Date of this Option,
        this Option may be exercised, at any time within twelve (12) months following
        the date of death, by the Optionee's estate or by a person who acquired the
        right to exercise this Option by bequest or inheritance, but only to the
        extent
        of the right to exercise that would have accrued had the Optionee continued
        living until one (1) month after the date of death; or

      

      (b)
        within thirty (30) days after the termination of the Optionee's Continuous
        Status as an Employee, this Option may be exercised, at any time within three
        (3) months following the date of death, by the Optionee's estate or by a
        person
        who acquired the right to exercise this Option by bequest or inheritance,
        but
        only to the extent of the right to exercise that had accrued at the date
        of
        termination.

      

      8.
        RESTRICTIONS
        ON TRANSFER.
        This
        Option may not be sold, pledged, assigned, hypothecated, or otherwise
        transferred in any manner otherwise than by will or by the laws of descent
        or
        distribution and may be exercised during the lifetime of the Optionee only
        by
        the Optionee. The terms of this Option shall be binding upon the executors,
        administrators, heirs, successors and assigns of the Optionee.

      

      9.
        TERM
        OF OPTION.
        This
        Option may not be exercised more than ten (10) years from the Grant Date
        of this
        Option, and may be exercised during such term only in accordance with the
        Plan
        and the terms of this Option.

      10.
        EARLY
        DISPOSITION OF SHARES.
        The
        Optionee understands that in order to obtain the most advantageous tax treatment
        for stock acquired pursuant to this Option, the Optionee is required to hold
        the
        Shares for a certain period of time. The Optionee understands that if he
        disposes of any Shares received under this Option within two (2) years after
        the
        date of this Agreement or within one (1) year after such Shares were transferred
        to him, he will be treated for federal income tax purposes as having received
        ordinary income at the time of such disposition in an amount equal to the
        positive difference between the exercise price for the Shares and the lower
        of
        the Fair Market Value of the Shares at the date of exercise of this Option
        and
        the sales price of the Shares. The Optionee agrees to notify the Company
        in
        writing within thirty (30) days after the date of any such disposition and
        to
        advise the Company of the amount of gain on the sale and shall deliver to
        the
        Company any federal income tax withholding amounts required in connection
        therewith. The Optionee understands that if he disposes of such Shares at
        any
        time after the expiration of such two-year and one-year periods, any gain
        on
        such sale will be taxed at applicable capital gain rates.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      11.
        NO
        RIGHTS AS SHAREHOLDER.
        The
        Optionee shall have no rights as a shareholder with respect to any Shares
        covered by this Option until the date of the issuance of a stock certificate
        to
        him for such Shares.

      

      12.
        ANTI-DILUTION
        PROVISIONS.
        If
        prior to expiration of this Option there shall occur any change in the
        outstanding Common Stock of the Company by reason of any stock dividend,
        stock
        split, combination or exchange of shares, merger, consolidation,
        recapitalization, reorganization, liquidation, subscription rights offering,
        or
        the like, and as often as the same shall occur, then the kind and number
        of
        shares subject to the Option, or the purchase price per share of Common Stock,
        or both, shall be adjusted by the Board of Directors in such manner as it
        may
        deem equitable, the determination of which shall be binding and conclusive.
        Failure of the Board of Directors to provide for any such adjustment shall
        be
        conclusive evidence that no adjustment is required. The Company shall have
        the
        right to engage a firm of independent auditors, to make any computation provided
        for in this Section, and a certificate of that firm showing the required
        adjustment shall be conclusive and binding

      

      13.
        NO
        OBLIGATION TO EXERCISE OPTION.
        The
        granting of this Option shall impose no obligation upon the Optionee to exercise
        such Option.

      

      14.
        ACCEPTANCE
        OF PROVISIONS.
        The
        execution of this Option Agreement by Optionee shall constitute Optionee’s
        acceptance of and agreement to all of the terms and conditions of the Plan
        and
        this Option Agreement.

      

      15.
        NOTICES.
        (a) All
        notices and other communications required or permitted under the Plan and
        this
        Agreement shall be in writing and shall be given either by (i) personal delivery
        or regular mail, in each case against receipt, or (ii) first class registered
        or
        certified mail, return receipt requested. All such notices or communications
        to
        the Company shall be addressed to the attention of its President, at its
        then
        principal office, and to Optionee at his last address appearing on the records
        of the Company or, in each case, to such other person or address as may be
        designated by like notice hereunder.

      

      (b)
        Any notice of exercise, in whole or in part, of an Option granted hereby
        must be
        received by the Company at its principal office at 616 N. North Court, Suite
        120
Palatine,
        IL 60067 by 5:00 p.m. on the day on which an Option or portion thereof
        expires.

      

      16.
         GOVERNING
        LAW.
        This
        Option shall be governed by and construed in accordance with the laws of
        the
        State of New York, except to the extent pre-empted by federal law.

      

      17.
        MISCELLANEOUS.
        Merger.
        This
        Agreement and the Plan contain a complete statement of all the arrangements
        between the parties with respect to their subject matter, and this Agreement
        cannot be changed except by a writing executed by both parties.

         

      (b)  Variations
        In Pronouns.
        All
        pronouns and any variations thereof used herein refer to the masculine, feminine
        or neuter, singular or plural, as the identity of the person or persons may
        require.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

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

      

      
        	 	 	 
	DATE OF GRANT: April 7, 2008	ACURA
                PHAMACEUTICALS, INC.
	 
 	 
 	 
 
	 	By:  	 
	 	
                
Name:
                Peter A. Clemens
	 	
                Title:  
                  Senior Vice President and

                           
                  Chief Financial Officer 

              

      

       

       

      
      

      
        
          

        

      

      
      

      Acknowledgment
        and Acceptance of Optionee

      

      

      The
        Optionee acknowledges receipt of a copy of the Plan, a copy of which is annexed
        hereto as Exhibit
        A,
        and
        represents that he is familiar with the terms and provisions thereof, and
        hereby
        accepts this Option subject to all of the terms and provisions thereof. The
        Optionee hereby agrees to accept as binding, conclusive and final all decisions
        or interpretations of the Board upon any questions or disputes arising under
        the
        Plan.

      

      

                                                         
        

      Name:
        Robert B. Jones

      

      

      Dated:                           

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      EXHIBIT
        A

      

      1998
        Stock Option Plan

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      EXHIBIT
        B

      

      ACURA
        PHARMACEUTICALS, INC. 

      RESTRICTED
        STOCK UNIT AWARD AGREEMENT 

      

      

      
        	
                Participant
                  Name:

              	
                Robert
                  B. Jones 

              
	 	 
	
                Number
                  of RSUs Granted:

              	
                Fifty
                  Thousand (50,000)

              
	 	 
	
                Award
                  Date:

              	
                April
                  7, 2008

              
	 	 
	
                Vesting
                  Schedule:

              	
                Two
                  Thousand Five Hundred (2,500) RSUs on the last day of each calendar
                  month
                  commencing May 31, 2008.

              

      

       

      

      THIS
        AGREEMENT
        (the
“RSU Agreement” or “Agreement”) is between ACURA
        PHARMACEUTICALS, INC.,
        a New
        York corporation (the “Company”) and the employee named above (the
“Participant”), and is made in accordance with the ACURA PHARMACEUTICALS, INC.
        2005 Restricted Stock Unit Award Plan (the “Plan”). 

      

      
        W
          I T N E S S E T H

      

       

      WHEREAS,
        pursuant to the Plan, the Company has granted to the Participant for services
        to
        be rendered to the Company, effective as of the Award Date, a restricted
        stock
        unit award (the “RSU Award” or “Award”), upon the terms and conditions set forth
        herein and in the Plan. 

       

      NOW,
        THEREFORE,
        in
        consideration of services rendered and to be rendered by the Participant
        and the
        mutual promises made herein and the mutual benefits to be derived therefrom,
        the
        parties agree as follows: 

        

      1.
        Defined
        Terms.
        Capitalized terms used herein and not otherwise defined herein shall have
        the
        meaning assigned to such terms in the Plan. 

       

      2.
        Grant.
        Subject
        to the terms of this Agreement and the Plan, the Company hereby grants to
        the
        Participant a RSU Award for the aggregate number of Restricted Stock Units
        (the
“RSUs”) set forth above. 

       

      3.
        Vesting.
        The
        Award shall vest and become nonforfeitable with respect to the applicable
        portion of the total number of RSUs comprising the Award (subject to adjustment
        under Section 10 of the Plan), as described in the Vesting Schedule above,
        subject to earlier acceleration or termination as provided herein and in
        Sections 5 and 7 of the Plan. In addition to acceleration of vesting of the
        Award upon the occurrence of any events providing for acceleration of vesting
        under Section 5(c) of the Plan, the Award shall fully and immediately vest
        and
        become nonforfeitable if the Participant terminates his employment with the
        Company for “Good Reason” as such term is defined in the Participant’s
        Employment Agreement with the Company dated March 18, 2008. Except as provided
        in this Section and in Section 5(c) of the Plan, the Participant’s RSUs shall be
        forfeited to the extent such RSUs have not become vested upon the date the
        Participant’s services as an employee terminates. Except as otherwise provided
        in this Section 3 and in Section 5(c) of the Plan, the Vesting Schedule above
        requires the Participant’s full time continued service through each applicable
        vesting date as a condition to the vesting of the applicable installment
        and
        rights and benefits under this Agreement.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      4.
        Distribution
        with Respect to Stock Units.
        RSUs
        credited to a Participant’s Stock Unit Account that have become vested Stock
        Units will be distributed in shares of Common Stock pursuant to the terms
        of the
        Plan.

       

      5.
        Plan.
        The
        Award and all rights of the Participant with respect thereto are subject
        to, and
        the Participant agrees to be bound by, all of the terms and conditions of
        the
        provisions of the Plan, incorporated herein by reference. Unless otherwise
        expressly provided in this Agreement, provisions of the Plan that confer
        discretionary authority on the Board or the Committee do not (and shall not
        be
        deemed to) create any additional rights in the Participant not expressly
        set
        forth in the Agreement or in a written amendment thereto. If there is any
        conflict or inconsistency between the terms and conditions of this Agreement
        and
        of the Plan, the terms and conditions of the Plan shall govern. The Participant
        acknowledges receipt of a complete copy of the Plan and agrees to be bound
        by
        its terms. 

       

      IN
        WITNESS WHEREOF,
        the
        parties have executed this Agreement as of the Award Date first above written.
        By the Participant’s execution of this Agreement, the Participant agrees to the
        terms and conditions of this Agreement and of the Plan. 

       

      
        	 	 	 	 	 
	
                ACURA
                  PHARMACEUTICALS, INC.

                (a
                  New York corporation)

              	
                 

              	
                PARTICIPANT

              
	
                 

              	
                 

              
	 	 
	
                 

                                            

              	
                 

              	
                 

                                            

              
	
                By:

              	
                 

              	
                 Peter
                  A. Clemens

              	
                 

              	
                (Signature)

              
	
                Its:

              	
                 

              	
                Senior
                  Vice President and Chief Financial Officer 

              	
                 

              	
                 

              
	 	 	 
	
                 

              	
                 

              	
                 

              	
                 

              	
                Robert
                  B. Jones                      

                (Print
                  Name)

              
	 	 	 
	
                 

              	
                 

              	
                 

              	
                 

              	
                 

                20
                  Beekman Terrace

              
	
                 

              	
                 

              	
                 

              	
                 

              	
                (Address)

              
	 	 	 
	
                 

              	
                 

              	
                 

              	
                 

              	
                 

                Summit,
                  New Jersey 07901

              
	
                 

              	
                 

              	
                 

              	
                 

              	
                (City,
                  State, Zip Code)March
      13,
      2008

    

    Al
      Aladwani

    3802
      Abalone Cove

    Missouri
      City, Texas 

    

    Dear
      Al:

    

    We
      have
      enjoyed our conversations with you regarding your background and a senior
      management level opportunity with Sharps Compliance, Inc. (“Sharps” or the
“Company”). I am pleased to offer you the position of Senior Vice President of
      Operations with Sharps reporting to me. The offer is contingent upon, (i) your
      acceptance of the terms and conditions of employment, (ii) completion, to the
      Company’s satisfaction, of reference and background checks and (iii)
      satisfactory results of drug testing.

    

    Your
      compensation will include a base salary of $6,153.85 per pay period (twenty-six
      pay periods per year). You will be eligible to participate in a discretionary
      bonus program approved by the Company’s Board of Directors.

    

    You
      will
      receive a grant of 25,000 options to purchase the Company’s common stock
      subsequent to the first ninety (90) days of your employment (subject to
      continued employment). All stock option grants are subject to Board of Director
      approval and the terms of the Sharps Compliance Corp. 1993 Stock Plan.

    

    As
      an
      employee of Sharps, you will be eligible to participate in the Company’s group
      benefit program which includes: group health, vision, dental, disability
      insurance and 401(k). A summary description of the program, including employee
      premiums, is attached to this offer letter. 

     

    This
      offer does not constitute an employment contract or guarantee of employment
      for
      any specific period of time since the Company is an“at-will”
employer.
      At-will employment means that either you or the
      Company,
      with or
      without cause and with or without prior notice, may terminate the employment
      relationship at any time. Additionally,
      your employment will be subject to the Company’s policies and procedures, a copy
      of which was provided to you when you initially joined the Company.

     

    

      Sharps
        Compliance, Inc.

       

      9220
        Kirby Drive Suite 500

       

      Houston,
        Texas 77054

       

      www.sharpsinc.com

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    Page
      2

    Aladwani

    

    

    Additionally,
      you agree to enter into a non-compete and confidentiality agreement consistent
      with the attached.

    

    Your
      initial date of employment, subject to the conditions as outlined in this
      letter, will be 

    Monday,
      March 24, 2008 or such other date as mutually agreed.

    

    We
      are
      pleased to offer you this opportunity and are confident that you will make
      a
      measurable contribution to the Company. Should the above be acceptable to you,
      please, (i) sign your acceptance of this offer of employment and (ii) complete
      and sign the attached Application of Employment including drug testing and
      release of information consents. Both items should be faxed to the attention
      of
      Lynn Carnes at 713-660-3583. 

    

    

    Sincerely,

    
      

    

    

    

    Dr.
      Burton J. Kunik

    Chairman,
      Chief Executive Officer & President

    

    

    Attachments

    

    

    Accepted
      and Agreed:

    

    

    _____________________________

    Al
      Aladwani        Date

     

    

      Sharps
        Compliance, Inc.

       

      9220
        Kirby Drive Suite 500

       

      Houston,
        Texas 77054

       

      www.sharpsinc.com

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