EMPLOYMENT AGREEMENT


     AGREEMENT (the "Agreement") made by and between PRESSTEK,  INC., a Delaware
corporation (the "Employer"), and Richard A. Williams (the "Employee").

     WHEREAS, the Employee has heretofore been employed as Chairman of the Board
of Directors and Chief Scientific Officer of the Employer;

     WHEREAS,  the  Employee  wishes  to  continue  in his  employment  with the
Employer and the Employer wishes to continue its employment of Employee; and

     WHEREAS,  the parties  desire to amend,  restate and supersede all previous
agreements  between the Employer and the Employee to the extent that they relate
to the Employee's continued employment by Employer.

     NOW,  THEREFORE,  in  consideration  of the  premises  and of the  promises
hereafter contained, and for other good and valuable consideration,  the receipt
and sufficiency of which are hereby acknowledged, it is AGREED as follows:

          1.  Employment.  The Employee is employed as Chairman of the Board and
     Chief  Scientific  Officer of the Employer from the date hereof through the
     term of this  Agreement.  The  Employee  shall  render  executive,  policy,
     operations  and  other  management  services  to the  Employer  of the type
     customarily   performed  by  persons  situated  in  similar  executive  and
     management capacities. The Employee shall perform such other related duties
     as the Board of Directors of the Employer may from time to time  reasonably
     direct.

          2.  Compensation.  The Employer  agrees to pay the Employee during the
     Term of this Agreement a base salary as follows: Through December 31, 1999,
     a salary (the  "Salary")  at an annual rate equal to  $215,000.00  with the
     Salary to be reviewed annually thereafter during the Term of this Agreement
     by the Board of Directors of the Employer. In the annual Salary review, the
     Board of Directors may  compensate the Employee for increases in the market
     value of the  Employee's  duties  and  responsibilities  hereunder  and may
     provide for performance or merit increases. The base Salary of the Employee
     shall not be decreased at any time during the Term of this  Agreement  from
     the amount then in effect, unless the Employee otherwise agrees in writing.
     The Salary  shall be  payable  to the  Employee  not less  frequently  than
     monthly.

          Participation in discretionary bonuses,  retirement and other employee
     benefit plans and fringe  benefits  shall not reduce the Salary  payable to
     the Employee under this Section 2.


<PAGE>



          3.  Discretionary  Bonuses.  During  the Term of this  Agreement,  the
     Employee shall be entitled to  participate in an equitable  manner with all
     other  eligible  executive  employees  of the  Employer  in  any  incentive
     compensation  and bonus  programs  authorized  and declared by the Board of
     Directors of the Employer for executive  employees.  No other  compensation
     provided for in this Agreement  shall  compensation  or bonus programs when
     and as declared.

          4.  Participation  in Stock Option,  Retirement  and Employee  Benefit
     Plans; Fringe Benefits. Subject to the eligibility requirements that may be
     applicable,  the Employee  shall be entitled to  participate in any plan or
     arrangement  of the Employer  relating to stock options,  stock  purchases,
     pension,  thrift,  or profit  sharing  benefits,  or other  benefits  under
     qualified  or  non-qualified   deferred   compensation  plans,  group  life
     insurance,  medical coverage, education or any other employee benefits that
     the Employer may adopt or make available for the benefit of the Employee or
     of executive employees generally.


          In addition,  during the term hereof,  the Employer will  cooperate in
     providing  life  insurance  coverage on the life of the Employee  through a
     split-dollar life insurance policy  collateral  assignment  agreement,  the
     terms  and  conditions  of which  shall  be  provided  for in an  agreement
     separate from this Agreement.

          The Employee shall also be entitled  during the term of this Agreement
     to any fringe benefits which may be or become available, during the Term of
     this Agreement,  to executive employees of the Employer, and to the payment
     or reimbursement  of reasonable  expenses for attending annual and periodic
     meetings  of  trade   associations,   and  any  other  benefits  which  are
     commensurate  with the duties and  responsibilities  to be performed by the
     Employee under this Agreement.

          5. Employment Term. "Term," as used in this Agreement,  shall refer to
     the Term of this  Agreement as defined in this  paragraph.  The Term of the
     employment  under this Agreement is initially for a period ending  December
     31, 1999 unless sooner terminated in accordance with the provisions hereof.
     The Term of  employment  under this  Agreement  shall,  on each December 31
     hereafter, be automatically extended for an additional calendar year unless
     the Employee or the Employer gives written notice to the other, by no later
     than the  preceding  November  30,  that he or it does not  concur  in such
     extension.  If  neither  party  gives  notice  of  non-concurrence  in such
     extension, the Term will automatically extend for one additional year.


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<PAGE>



          6.  Standards.  The Employee  shall  perform his duties and  Responsi-
     bilities under this Agreement in accordance with such reasonable  standards
     as are  established  from  time to time by the  Board of  Directors  of the
     Employer.  The  reasonableness  of such standards shall be measured against
     standards for executive  performance  generally  prevailing in similar high
     technology companies.

          7. Voluntary Absences: Vacations. The Employee shall be entitled to an
     annual paid  vacation  during the Term of this  Agreement of four weeks per
     year or such longer  period as the Board of  Directors  may approve or such
     longer  periods to which the Employee may be entitled as an employee of the
     Employer.  The timing of paid vacations  shall be scheduled in a reasonable
     manner by the Employee.

          8. Termination of Employment.

          (a)  (i) The Board of  Directors of the  Employer  may  terminate  the
               Employee's  employment at any time,  but any  termination  by the
               Board of Directors other than termination for Cause shall require
               180 days  prior  written  notice  and  shall  not  prejudice  the
               Employee's  right to receive the  compensation and other benefits
               set forth in this  Agreement.  In the event of a termination  for
               Cause,   the  Employee  shall  have  no  right  to  receive  such
               compensation or other benefits,  including  payment of legal fees
               and expenses  incurred,  for any period after the termination for
               Cause. Regardless of the reason for the termination of Employee's
               employment,  other than termination for Cause, the Employer shall
               continue  to be  subject  to any  independent  obligation  to the
               Employee under any employee benefit plan in which the Employee is
               then a  participant,  and to any obligation for severance pay, if
               any, in accordance with the then existing  severance  policies of
               the Employer.

               (ii)  Unless  termination  is for Cause,  the  Employer  shall be
               obligated  concurrently  with  such  termination,   in  lieu  and
               replacement  of Employee's  entitlement to any  compensation  and
               other benefits under this Agreement  pursuant to Section 8(a)(i),
               to make a lump sum cash  payment to the  Employee  as  liquidated
               damages of an amount equal to the present value of the Employee's
               then current Salary under this Agreement  calculated for a period
               based on the  remainder of the Term hereof when the  Agreement is
               terminated;   provided,  however,  that  if  the  termination  of
               employment  occurs in connection with or within two years after a
               "Change in Control" as defined in Section 9(b) hereof, the amount
               payable to the Employee shall be determined under Section



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<PAGE>



               9(a) as limited  by  Section  9(c)  hereof.  Such  payment to the
               Employee  shall be made on or before the  Employee's  last day of
               employment with the Employer. The liquidated damages shall not be
               reduced by any  compensation  which the  Employee may receive for
               other employment with another  employer after  termination of his
               employment with the Employer. In addition,  the Employee shall be
               entitled to have all existing  retirement or employee benefits of
               the  type  referred  to in  Section  4  hereof  continue  for the
               remainder of the Term hereof when the  Agreement  is  terminated,
               except as  otherwise  required  by law or provided in the related
               retirement or other employee benefit plans or agreements.

               (iii)  References in this  Agreement to  "termination  for Cause"
               shall mean  termination  on account of acts or  omissions  of the
               Employee   which   constitute   Cause  as  defined   below.   Any
               determination  with  respect  to a  termination  for Cause  shall
               require the  approval of a  two-thirds  vote of the full Board of
               Directors of the  Employer.  "Cause"  shall mean any one or more,
               but only one or more, of the following:

               (A)  Conviction of a felony,

               (B)  Theft from the Employer,

               (C)  Breach of fiduciary duty involving personal profit,

               (D)  Sustained  and  continuous  conduct  by the  Employee  which
                    adversely affects the reputation of the Employer, or

               (E)  Continued   failure  of  the  Employee   substantially   and
                    satisfactorily  to perform his duties or  obligations  under
                    this Agreement  following 30 days' notice by the Employer to
                    the  Employee  and a failure by the  Employee to correct the
                    deficiency cited in such notice (other than any such failure
                    resulting from the Employee's  incapacity due to physical or
                    mental illness).

          (b) The Employee shall have no right to terminate his employment under
          this Agreement prior to the end of the Term of this Agreement,  unless
          such  termination is either  approved by the Board of Directors of the
          Employer or is for Good Reason (as  described  in Section 9(a) hereof)
          in  connection  with or within two years after a Change in Control (as
          defined  in  Section  9(b)  hereof).  In the event  that the  Employee
          violates  this  provision,  or in  the  event  that  the  Employee  is
          terminated for Cause, the



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<PAGE>



          Employee  shall be  entitled to no further  payments  pursuant to this
          Agreement,  and the  Employer  shall be  entitled,  in addition to its
          other legal remedies, to request a court of competent  jurisdiction to
          enjoin the employment of the Employee with any significant  competitor
          of the  Employer,  within  a 30 mile  radius  of the  Employer  or any
          location at which the Employer  operates at the time,  for a period of
          one year or the remaining Term of this  Agreement,  whichever is less.
          Upon written consent,  the Board may permit the Employee to work for a
          significant competitor during such period. During such period, even if
          the Employee is permitted to be employed by a significant  competitor,
          he shall not without the  approval  of the Board of  Directors  of the
          Employer induce any officer of the Employer to accept  employment from
          such  significant  competitor,   nor  shall  he  use  proprietary  and
          confidential  information  of the  Employer  for the benefit of such a
          significant competitor.

9.   Change in Control.

          (a)       (i) If during the Term of this  Agreement  there is a Change
                    in Control of the Employer,  and the  Employee's  employment
                    with the Employer is  terminated  involuntarily  (other than
                    for  Cause),  or  voluntarily  for Good  Reason (as  defined
                    below),  in  connection  with or within two years after such
                    Change in Control,  then the  Employee  shall be entitled to
                    receive as a  severance  payment,  for  services  previously
                    rendered  to  the  Employer,  a lump  sum  cash  payment  as
                    provided in Section 9(a)(ii) below.

          (ii)      Subject to Section 9(c)  hereof,  the amount of the lump sum
                    cash  payment  (the  "Payment")  shall equal three times the
                    Employee's average annual Salary and cash bonuses which were
                    payable by the Employer and were  includible by the Employee
                    in his gross  income for federal  income tax  purposes  with
                    respect  to  the  five  most  recent  taxable  years  of the
                    Employee  ending  prior to such  Change  in  Control  of the
                    Employer  (or such  portion of such period  during which the
                    Employer was a full-time employee of the Employer), less one
                    dollar.

          (iii)     As  used  herein,  the  term  "Good  Reason"  means,  unless
                    previously  consented  to in  writing by the  Employee,  the
                    occurrence of any one of the following:

               (A)  The    assignment    to   the   Employee   of   duties   and
                    responsibilities   that  are  not  at  least   substantially
                    equivalent to the Employee's duties and



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<PAGE>



                    responsibilities with the Employer immediately prior to such
                    Change in Control;

               (B)  the failure to continue the Employee in a position and title
                    that is at least  substantially  equivalent  to the position
                    held by the Employee with the Employer  immediately prior to
                    such  Change  in  Control,  except  in  connection  with the
                    termination of the  Employee's  employment for Cause or as a
                    result of death or permanent disability;


               (C)  a reduction in or failure to pay currently total annual cash
                    compensation  in an amount  equal to or greater than the sum
                    of (i) the  Employee's  Salary at the highest annual rate in
                    effect during the 12-month period  immediately prior to such
                    Change  in  Control,  and (ii) the bonus  paid to  similarly
                    situated  employees  pursuant  to the  acquiring  employer's
                    executive bonus plan for the fiscal year ending  immediately
                    prior to such Change in Control;

               (D)  the  Employee's  benefits  under  any  employee  benefit  or
                    welfare  plan of the  acquiring  employer  are less,  or are
                    reduced to less, other than reductions  mandated by a change
                    in law,  than the benefits of similarly  situated  employees
                    under any employee  benefit or welfare plan of the acquiring
                    employer  in  effect  immediately  prior to such  Change  in
                    Control;


               (E)  the Employee is reassigned  to a place of business  which is
                    more than 30 miles from Hudson, New Hampshire; or

               (F)  any breach by the Employer or the acquiring employer of this
                    Agreement.

               (iv) Payment  under  this  Section  9(a)  shall be in lieu of any
                    amount  owed  to the  Employee  as  liquidated  damages  for
                    termination  without Cause under  Sections  8(a)(i) and (ii)
                    hereof. Payment under this Section 9(a) shall not be reduced
                    by any  compensation  which the  Employee  may receive  from
                    other employment with another employer after  termination of
                    his employment with the Employer.



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<PAGE>


     (b) A "change in control of the  Employer,"  for  purposes  of this  Agree-
     ment, shall be deemed to have taken place if: (i) a third person, including
     a "group" as defined in Section 13(d)(3) of the Securities  Exchange Act of
     1934,  becomes the  beneficial  owner of shares of the  Employer  having 20
     percent  or more of the  total  number  of  votes  that may be cast for the
     election  of  directors  of the  Employer;  or (ii) as the result of, or in
     connection  with,  any cash  tender or  exchange  offer,  merger,  or other
     business  combination,  sale  of  assets  or  contested  election,  or  any
     combination of the foregoing  transactions,  the persons who were directors
     of the  Employer  before  such  transaction  shall  cease to  constitute  a
     majority  of the  Board  of  Directors  of the  Employer  or any  successor
     institution.

     (c)  Notwithstanding  any other provisions of the Agreement or of any other
     agreement,  contract, or understanding heretofore or hereafter entered into
     by the  Employee  with the  Employer,  except an  agreement,  contract,  or
     understanding  hereafter  entered into that expressly  modifies or excludes
     application of this Section 9(c) ("Other Agreements"),  and notwithstanding
     any formal or informal  plan or other  arrangement  heretofore or hereafter
     adopted  by  the  Employer   for  the  direct  or  indirect   provision  of
     compensation to the Employee  (including  groups or classes of participants
     or  beneficiaries  of which the Employee is a member),  whether or not such
     compensation is deferred,  is in cash, or is in the form of a benefit to or
     for the Employee (a "Benefit Plan"),  the Employee shall not have any right
     to receive any payment or other  benefit  under this  Agreement,  any Other
     Agreement,  or any Benefit  Plan if such  payment or  benefit,  taking into
     account all other  payments or benefits to or for the  Employee  under this
     Agreement,  all Other  Agreements,  and all Benefit Plans,  would cause any
     payment to the Employee  under this Agreement to be considered a "parachute
     payment" within the meaning of Section  280G(b)(2) of the Internal  Revenue
     Code as  then  in  effect  (a  "Parachute  Payment"),  as  determined  by a
     nationally  recognized  accounting firm selected by the Board. In the event
     that the receipt of any such payment or benefit under this  Agreement,  any
     Other  Agreement,  or any  Benefit  Plan  would  cause the  Employee  to be
     considered to have received a Parachute Payment under this Agreement,  then
     the Employee shall have the right,  in the Employee's sole  discretion,  to
     designate  those  payments  or  benefits  under this  Agreement,  any Other
     Agreements, and/or any Benefit Plans, which should be reduced or eliminated
     so as to avoid having the payment to the Employee  under this  Agreement be
     deemed to be a Parachute Payment.

          10. Expenses.  The Employee is authorized to incur, during the Term of
     this  Agreement,  reasonable  expenses  for  promoting  the business of the
     Employer,  including without limitation expenses for entertainment,  travel
     and similar  items.  The Employer will promptly  reimburse the Employee for
     all such



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<PAGE>



     expenses,  upon the presentation by the Employee,  from time to time, of an
     itemized account of such expenses.

          11. Legal Expenses. The Employer shall indemnify and hold harmless the
     Employee  from and  against  any and all costs and  liabilities,  including
     without  limitation  reasonable  attorneys'  fees,  arising  out  of  or in
     connection  with  being  or  having  been an  officer  or  director  of the
     Employer,  except in relation to matters as to which the Employee  shall be
     finally  adjudged not to have acted in good faith in the reasonable  belief
     that his action or failure to act was in the best interest of the Employer.

          12.  Successors  and Assigns;  Assumption  by  Successors.  All rights
     hereunder shall inure to the benefit of the parties hereto,  their personal
     or legal representatives,  heirs, successors or assigns. This Agreement may
     not be assigned or pledged by the  Employee.  The Employer will require any
     successor  (whether direct or indirect,  by purchase,  assignment,  merger,
     consolidation  or  otherwise) to all or  substantially  all of the business
     and/or assets of the Employer in any  consensual  transaction  expressly to
     assume this Agreement and to agree to perform  hereunder in the same manner
     and to the same extent that the Employer would be required to perform if no
     such succession had taken place.  References herein to the Employer will be
     understood  to  refer  to the  successor  or  successors  of the  Employer,
     respectively.

          13. Other  Contracts.  The Employee shall not, during the Term of this
     Agreement,  have any other paid employment (other than with a subsidiary or
     affiliate of the Employer)  except with the prior  approval of the Board of
     Directors of the Employer.

          14. Entire  Agreement.  This Agreement  constitutes  the entire Agree-
     ment between the parties and supersedes all prior employment agreements and
     understandings, whether written or oral.

          15.  Amendments  or  Additions.  No  amendments  or  additions to this
     Agreement shall be binding unless in writing and signed by the parties.

          16. Section Headings.  The section headings used in this Agreement are
     included  solely  for  convenience  and  shall  not  affect,  or be used in
     connection with, the interpretation of this Agreement.

          17.  Severability.  The provisions of this  Agreement  shall be deemed
     severable and the invalidity or unenforceability of any provision shall not
     affect the validity or enforceability of the other provisions hereof.

          18. Governing Law. This Agreement shall be governed by the laws of the
     United  States where  applicable  and otherwise by the laws of the State of
     New Hampshire, except the choice of law rules thereof.



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<PAGE>



     IN WITNESS WHEREOF,  the parties have executed this Agreement this 24th day
of March, 1999.

                                            PRESSTEK, INC. (the "Employer")



                                            By: /s/ Robert W. Hallman
                                               --------------------------------

                                              /s/ Richard A. Williams
                                            ------------------------------------
                                            Richard A. Williams (the "Employee")



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