EMPLOYMENT AGREEMENT

| | This
Employment Agreement (hereinafter this Agreement) dated as of April 1, 2003
(the Effective Date) by and between i-STAT CORPORATION, a Delaware
corporation having a place of business at 104 Windsor Center Drive, East Windsor, New
Jersey 08520 (the Company), and Michael Zelin, an individual residing at 9104
Tamarron Drive, Plainsboro, NJ 08536 (Employee).
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WITNESSETH:

| | WHEREAS,
Employee has been employed by the Company since February 26, 1986, and
| | -------------------------------------------------------------------------------

| | WHEREAS,
the Company desires to continue to employ Employee and Employee desires to continue to be
employed by the Company, all pursuant to the terms and conditions hereinafter set forth.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | NOW,
THEREFORE, in consideration of the premises and the mutual covenants herein contained,
the receipt and sufficiency of which are hereby acknowledged, and intending to be legally
bound hereby, it is agreed as follows:
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Section
1.     Definitions. Unless otherwise defined herein, the following terms shall        have the following respective meanings:

| | Benefitmeans
those benefits set forth in Section 3.3 hereof.
| | --------------------------------------------------------------

| | Causemeans
(i) any felony conviction or admission of guilt, (ii) any breach or nonobservance by
Employee of any material covenant set forth herein, (iii) any willful, intentional or
deliberate disobedience or neglect by Employee of the lawful and reasonable orders or
directions of the Chief Executive Officer of the Company; provided, that the Chief
Executive Officer of the Company has given Employee written notice of such disobedience
or neglect and Employee has failed to cure such disobedience or neglect within a period
reasonable under the circumstances, or (iv) any willful or deliberate misconduct by
employee that is materially injurious to the Company.
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| | Change
of Control shall mean any of the following:
| | ----------------------------------------------------

| | A.              An
acquisition (other than directly from the Company) of any voting securities           of
the Company (the Voting Securities) by any Person (as
          the term person is used for purposes of Section 13(d) or 14(d) of
          the Securities Exchange Act of 1934, as amended (the 1934 Act)
          immediately after which such Person has Beneficial Ownership (within
          the meaning of Rule 13d-3 promulgated under the 1934 Act) of thirty percent
          (30%) or more of the combined voting power of the Companys then
          outstanding Voting Securities; provided, however, that in determining
          whether a Change of Control has occurred, Voting Securities which are acquired
          in a Non-Control Acquisition (as defined below) shall not
constitute           an acquisition which would cause a Change of Control. A Non-Control
          Acquisition shall mean an acquisition by (i) an employee benefit plan (or
          trust forming a part thereof) maintained by (x) the Company or (y) any
          corporation or other Person of which a majority of its voting power or its
          equity securities or equity interest is owned directly or indirectly by the
          Company (a Subsidiary), (ii) the Company or any Subsidiary, or
(iii)           any Person in connection with a Non-Control Transaction (as defined
below).
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| | B.              The
individuals who, as of the date immediately before any Change of           Control set
forth in clauses A or C hereof, are members of the Board (the           Incumbent
Board), cease for any reason to constitute at least a           majority of the
Board; provided, further, that no individual shall be           considered a
member of the Incumbent Board if such individual initially assumed           office as a
result of either an actual or threatened Election           Contest (as
described in Rule 14a-11 promulgated under the 1934 Act) or           other actual or
threatened solicitation of proxies or consents by or on behalf           of a Person
other than the Board (a Proxy Contest) including by           reason of any
agreement intended to avoid or settle any Election Contest or           Proxy Contest.
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| | C.              Approval
by the stockholders of the Company of:
| | ---------------------------------------------------------------

| |  |  | (i) |  | A
merger, consolidation, or reorganization involving the Company, unless:
| |  |  | --- |  | -------------------------------------------------------------------------

| |  |  |  | (1) | The
stockholders of the Company, immediately before such merger, consolidation           or
reorganization, own, directly or indirectly, immediately following such           merger,
consolidation or reorganization, at least a majority of the combined           voting
power of the outstanding voting securities of the corporation resulting           from
such merger or consolidation or reorganization (the Surviving           Corporation)
in substantially the same proportion as their ownership of           the Voting
Securities immediately before such merger, consolidation, or           reorganization;
and | 
| |  |  |  | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | 

| |  |  |  | (2) | The
individuals who were members of the Incumbent Board immediately prior to the
          execution of the agreement providing for such merger, consolidation, or
          reorganization constitute at least a majority of the members of the board of
          directors of the Surviving Corporation or corporation Beneficially Owning,
          directly or indirectly, a majority of the voting securities of the Surviving
          Corporation; and | 
| |  |  |  | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | 

| |  |  |  | (3) | No
Person (other than the Company, any Subsidiary, any employee benefit plan (or
          any trust forming a part thereof) maintained by the Company, the Surviving
          Corporation, any Subsidiary, or any Person who, immediately prior to such
          merger, consolidation or reorganization had Beneficial Ownership of fifteen
          percent (15%) or more of the then outstanding Voting Securities) owns, directly
          or indirectly, thirty percent (30%) or more of the combined voting power of the
          Surviving Corporations then outstanding voting securities. | 
| |  |  |  | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | 

| |  |  |  | (4) | A
transaction described in the foregoing clauses (1) through (3) shall herein be
          referred to as a Non-Control Transaction. | 
| |  |  |  | --- | -------------------------------------------------------------------------------------------------------------------------------------- | 

| |  |  | (ii) |  | A
complete liquidation or dissolution of the Company; or
| |  |  | ---- |  | --------------------------------------------------------

| |  |  | (iii) |  | A
sale or other disposition of all or substantially all of the assets of the      Company to any Person (other than a transfer to a Subsidiary).
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| | D.                 Notwithstanding
the foregoing, a Change of Control shall not be deemed to occur solely because (i) any Person (the Subject Person) acquired           Beneficial Ownership
of more than the permitted amount of the outstanding Voting Securities as a
result of the acquisition of Voting Securities by the Company which by reducing
the number of Voting Securities outstanding, increases the proportional number
of shares beneficially owned by the Subject Person; provided, that if a Change of
Control would occur (but for the operation of this sentence) as a result of the
acquisition of Voting Securities by the Company, and after such acquisition by
the Company, the Subject Person becomes the Beneficial Owner of any additional
Voting Securities which increases the percentage of the then outstanding Voting
Securities beneficially owned by the Subject Person to a percentage sufficient
to constitute a Change of Control, then a Change of Control shall be deemed to
have occurred; or (ii) the acquisition of Voting Securities by holders of the
Companys Series D Convertible Preferred Stock, par value $.10 per share.
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| | Common
Stock means the common stock of the Company, par value $.15 per share.
| | -------------------------------------------------------------------------------

| | Diminution
in Responsibility means a material diminution in Employees duties or
responsibilities or the assignment to Employee of duties which are materially
inconsistent with his duties as Executive Vice President and Chief Technology Officer of
the Company or which materially impair Employees ability to function in his
position; provided, however, that no Diminution in Responsibility shall be deemed
to have occurred solely as a result of the consummation by the Company of a strategic
corporate alliance, partnership or joint venture (in whatever form) pursuant to which any
substantial portion of the Companys marketing and sales activities, or research and
development activities, or manufacturing activities come under the control of any entity
unaffiliated with the Company on the Effective Date.
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| | Permanent
Disability means Employees inability to substantially perform his duties
and responsibilities hereunder by reason of any physical or mental incapacity for a
period of 180 consecutive days, or two or more periods of 90 consecutive days each in any
360-day period.
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Section 2.     Employment;
Duties.

| | 2.1
    During the Term of Employment (as hereinafter defined), the Company shall employ
Employee, and Employee shall serve, as Executive Vice President and Chief Technology
Officer of the Company. Employees responsibilities shall include such functions and
duties with respect to the Company and its subsidiaries as the Chief Executive Officer or
the Board of Directors of the Company (the Board) shall determine and that
are consistent with the functions and duties of a senior technology officer of a
corporation of similar size and nature.
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| | 2.2
    During the Term of Employment and excluding any periods of vacation and sick leave to
which Employee is entitled, (a) Employee shall devote all of his business time to the
business and affairs of the Company (except as provided below) and shall use his best
efforts to perform faithfully and efficiently the responsibilities assigned to Employee,
(b) Employee shall apply his skill and experience to the performance of his duties in
such employment, and (c) Employee shall have no other employment. During the Term of
Employment, it shall not be a violation of this Agreement for Employee to devote up to
two business days per calendar quarter to: (i) serve as a director, officer or trustee of
any trade association or of any civic, educational or charitable organization, (ii) with
the prior consent of the Board, which shall not be unreasonably withheld, serve as
director of any corporation that does not compete, directly or indirectly, with the
Company, and (iii) manage his personal investments (provided, that no such
investment may exceed five percent (5%) of the equity securities of any entity without
the prior written approval of the Board and further provided, that nothing herein
shall limit any investment in an entity whose primary purpose is not the day-to-day
operation of a particular business) and affairs.
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Section 3.
    Compensation And Benefits.

| | 3.1    
Base Salary. During the Term of Employment, the Company shall pay Employee a
salary at the annual rate of Two Hundred Eighty-five Thousand dollars ($285,000) or such
greater amount as the Companys Board of Directors may from time to time establish
pursuant to the terms hereof (the Base Salary). The Base Salary shall be
payable in accordance with the Companys customary payroll practices for its senior
management personnel.
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| | 3.2    
Performance Bonus. During the Term of Employment, Employee shall be eligible to
participate in the Companys Annual Incentive Program (the AIP).
Employee recognizes that the Board of Directors of the Company reserves the right to
amend or terminate the AIP at any time.
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| | 3.3    
Benefits.
| | -----------------

| |  |  | (a) |  | Benefit
Plans. During the Term of Employment, Employee may participate,           on the same
basis and subject to the same qualifications as other senior           management
personnel of the Company, in any benefit plans and policies in effect           with
respect to senior management personnel of the Company.
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| |  |  | (b) |  | Reimbursement
of Expenses. During the Term of Employment, Company shall           pay or promptly
reimburse Employee, upon submission of proper invoices in           accordance with the
Companys normal procedures, for all reasonable           out-of-pocket business,
entertainment and travel expenses incurred by Employee           in the performance of
his duties hereunder.
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| |  |  | (c) |  | Vacation.
During the Term of Employment, Employee shall be entitled to           vacations in
accordance with the policies of the Company applicable to senior           management
personnel from time to time.
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| |  |  | (d) |  | Post-Retirement
Benefits. Employee shall be entitled to any           post-retirement benefits
generally made available to the Companys senior           management personnel.
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| |  |  | (e) |  | Withholding.
The Company shall be entitled to withhold from amounts           payable or benefits
accorded to Employee under this Agreement all federal, state           and local income,
employment and other taxes, as and in such amounts as may be           required by
applicable law.
| |  |  | --- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 3.4    
Term. This Agreement shall remain in full force and effect for an initial period
of four (4) years from the Effective Date (the Term of Employment) shall be
automatically extended for additional one-year periods thereafter (each a Renewal
Period) unless Employee notifies the Board of Directors or the Board of Directors
notifies Employee that the notifying party does not desire to extend such Term of
Employment at least ninety (90) days prior to the end of the expiration of the Term of
Employment. Employees employment hereunder shall be coterminous with the Term of
Employment, unless sooner terminated as provided in Section 5 hereof.
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Section 4.    Representations
And Warranties By Employee And The Company.

| | 4.1
         Employee hereby represents and warrants to the Company as follows:
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| |  |  | (a) |  | The
performance by Employee of his duties and other obligations hereunder will           not
conflict with or constitute a default under (whether immediately, upon the
          giving of notice or lapse of time or both) any prior employment agreement,
          contract, or other instrument to which is a party or by which he is bound.
| |  |  | --- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  |  | (b) |  | Employee
has the right, power and legal capacity to enter and deliver this           Agreement and
to perform his duties and other obligations hereunder. This           Agreement
constitutes the legal, valid and binding obligation of Employee           enforceable
against him in accordance with its terms.
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| | 4.2
         The Company hereby represents and warrants to Employee as follows:
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| |  |  | (a) |  | The
Company is duly organized, validly existing and in good standing under the           laws
of the State of Delaware, with all requisite corporate power and authority           to
own its properties and conduct its business in the manner presently
          contemplated.
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| |  |  | (b) |  | The
Company has full power and authority to enter into this Agreement and to           incur
and perform its obligations hereunder.
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| |  |  | (c) |  | The
execution, delivery and performance by the Company of this Agreement does           not
and will not conflict with or result in a breach or violation of or           constitute
a default under (whether immediately, upon the giving of notice or           lapse of
time or both) the certificate of incorporation or by-laws of the           Company, or
any agreement or instrument to which the Company is a party or by           which the
Company or any of its properties may be bound or affected.
| |  |  | --- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Section 5.    Termination.
Employees employment hereunder will begin on the Effective Date                                     and shall continue
until terminated upon the first to occur of the following events:

| |  |  | (a) |  | Death
or Permanent Disability of Employee. The Company may, at its           option,
terminate Employees employment for Permanent Disability (as herein
          defined). In the event of termination for death or disability, Employee or his
          designated beneficiary shall be entitled to termination benefits pursuant to
          Section 5(d) hereof.
| |  |  | --- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  |  | (b) |  | Termination
by the Company for Cause. In the event of termination by the           Company
pursuant to this Section 5(b), the Company shall have no further           obligations to
Employee under this Agreement other than to (i) pay           Employees then
current Base Salary through the effective date of           termination, and (ii) subject
to the terms hereof, pay or provide any benefits           which may be due to Employee.
| |  |  | --- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  |  | (c) |  | Termination
by Employee for Good Reason. In the event of termination by Employee for Good Reason
(as defined           below) pursuant to this Section 5(c), (i) all unvested options
granted to           Employee shall vest immediately as of the date of such termination,
(ii) within           five (5) days following the date of such termination, the Company
shall pay           Employee his target annual bonus for the current fiscal year on a pro
rata basis           corresponding to the date of termination, and (iii) continue to pay
Employee           monthly compensation equal to one-twelfth of Employees then
current Base           Salary plus annual target bonus for a period of twenty-four (24)
months           following the date of termination. Employees right to terminate
his           employment pursuant to this Section 5(c) shall not be affected by his
incapacity           due to Permanent Disability. The following actions or omissions by
the Company           shall constitute Good Reason:
| |  |  | --- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  |  |  | (A) | If,
in Employees sole determination, a Diminution of Responsibility           occurs,
Employee may, by providing written notice to the Company within sixty           (60) days
following such Diminution of Responsibility, deem such Diminution of
          Responsibility to be Good Reason under this Section 5(c); or | 
| |  |  |  | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | 

| |  |  |  | (B) | The
failure of the Company to obtain an agreement, satisfactory to Employee,           from
any successor or assignee of all or substantially all of the Companys
          business, to assume the Companys obligations to Employee under this
          Agreement. | 
| |  |  |  | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | 

| |  |  | (d) |  | Termination
by the Company without Cause.
| |  |  | --- |  | -----------------------------------------

| |  |  |  | (i) | The
Company shall give Employee not less than thirty (30) days prior written           notice
of the termination of his employment without Cause and the Company shall           have
the option of amending, suspending or terminating Employees duties           and
responsibilities prior to the expiration of the thirty-day notice period           (for
which purposes no Diminution of Responsibility shall be deemed to have
          occurred). | 
| |  |  |  | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | 

| |  |  |  | (ii) | If
such termination shall occur, the Company shall (A) continue to pay Employee
          monthly compensation equal to one-twelfth of Employees then current Base
          Salary for a period of fifteen (15) months following the date of such
          termination, and (B) on the date on which performance bonuses are paid to all
          Company employees, pay Employee a lump sum equal to the cash portion of the
          Performance bonus at the Target Level applicable to the year in which such
          termination occurs, pro rated to reflect the date of Employees
termination           (the Pro-Rated Performance Bonus). | 
| |  |  |  | ---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | 

| |  |  |  | (iii) | If
such termination shall occur within eighteen (18) months immediately           following
a Change of Control, then in lieu of amounts due under paragraph (ii)           above,
the Company shall (A) within five (5) days following the date of such
          termination, pay Employee his target annual bonus for the current fiscal year
on           a pro rata basis corresponding to the date of termination, and (B) continue
to           pay Employee monthly compensation equal to one-twelfth of Employees
then           current Base Salary plus annual target bonus for a period of twenty-four
(24)           months following the date of termination, and (C) immediately accelerate
the           exercisability of all unvested stock options granted to Employee to
purchase           Common Stock as of the date of such termination. | 
| |  |  |  | ----- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | 

| |  |  | (e) |  | Termination
by Employee without Good Reason. In the event Employee wishes to resign without Good
Reason, he shall give not less than thirty (30) days prior written notice of such
resignation and the Company shall have the option of terminating Employees duties
and responsibilities at any time prior to Employees proposed termination date,
subject to payment by the Company to Employee of the lesser of (i) Employees then
current Base Salary for a thirty (30) day period, or (ii) such portion of the period
remaining under the notice given by Employee.
| |  |  | --- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  |  | (f) |  | Termination
Due to Non-Renewal of Agreement by the Company. In the event           the Company
notifies Employee under Section 3.6 that it shall not renew this           Agreement for
any Renewal Period, Employee shall be entitled to monthly           compensation equal to
one-twelfth of Employees then current Base Salary           self-executing for a
period of fifteen (15) months following the end of the Term           of Employment.
| |  |  | --- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Section
6.    Change Of Control. Notwithstanding anything contained in
this Agreement to the contrary, if Employees employment is terminated by the
Company, other than for Cause, prior to a Change of Control and such termination (i) was
at the request of a third party who has indicated an intention or taken steps reasonably
calculated to effect a Change of Control and who effectuates a Change of Control (a Third
Party), or (ii) otherwise occurred as a condition to, or in connection with or
anticipation of, a Change of Control which actually occurs, then for all purposes of this
Agreement, the date of the Change of Control with respect to Employee shall mean the date
immediately prior to the date of such termination of Employees employment and shall
entitle Employee to the benefits provided under Section 5(c) of this Agreement as though
the termination of Employees employment was for Good Reason.
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| | Section
7.    Federal Excise Tax.
| | ---------------------------------

| | 7.1
    General Rule. Employees payments and benefits under
this Agreement and all other arrangements or programs related thereto shall not, in the
aggregate, exceed the maximum amount that may be paid to Employee without triggering
golden parachute penalties under Section 280G of the Internal Revenue Code of 1986, as
amended (the Code), and the provisions related thereto with respect to such
payments. If Employees benefits must be cut back to avoid triggering such
penalties, Employees benefits will be cut back in the priority order Employee
designates or, if Employee fails to promptly designate an order, in the priority order
designated by the Company. If an amount in excess of the limit set forth in this Section
is paid to Employee, Employee must repay the excess amount to the Company upon demand,
with interest at the rate provided in Code Section 1274(b)(2)(B). Employee and the
Company agree to cooperate with each other reasonably in connection with any
administrative or judicial proceedings concerning the existence or amount of golden
parachute penalties on payments or benefits Employee receives.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 7.2    
Exception. Section 7.1 shall apply only if it increases the net amount Employee
would realize from payments and benefits subject to Section 7.1, after payment of income
and excise taxes by Employee on such payments and benefits.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 7.3
    Determinations. The determination of whether the golden parachute penalties under
Code Section 280G and the provisions related thereto shall apply, shall be made by
counsel chosen by Employee. All other determinations needed to apply this Section 7 shall
be made in good faith by the Companys independent auditors.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Section
8.     Extended Medical And Dental Benefits. In the event of the termination of
Employees employment under Sections 5(a), 5(c) or 5(d) of this Agreement, and at
Employees election, Employee and Employees dependents shall continue to
receive the Companys standard employee medical and dental benefits at the Companys
expense under such plans for (i) twelve (12) months for termination under Sections 5(a),
or 5(d)(i) or 5(d)(ii) hereof, or (ii) eighteen (18) months for termination under Section
5(c) or Section 5(d)(iii) hereof. Notwithstanding the foregoing, in the event Employee
becomes covered or eligible to be covered as a primary insured (that is, not as a
beneficiary under a spouses plan) under another employers group health plan
during the extended benefit periods provided for herein, Employee shall promptly notify
the Company and the Company shall have no further obligation to provide group health
benefits for Employee and any dependents.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Section
9.     Confidentiality Agreement. Employee agrees to execute an Employee
Confidentiality and Invention Agreement with the Company, in a form customarily employed
by the Company, which provides for standard non-solicitation and non-competition
covenants covering a period of twelve (12) months after Employee ceases to be employed by
the Company for any reason or no reason.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Section
10.     Release Of Claims. The Company may condition payment of the cash termination
benefits described in Sections 5(a), 5(c) or 5(d) of this Agreement upon the delivery by
Employee of a signed release of claims in a form customarily employed by the Company; provided,
however, that Employee shall not be required to release any rights Employee may have to
be indemnified by the Company under Section 11.5 of this Agreement or the certificate of
incorporation or by-laws of the Company.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Section
11.     General.
| | ------------------------

| | 11.1
    Notices. Any notice or other communication under this Agreement shall be in
writing and shall be deemed to have been given: (i) upon delivery when delivered
personally; (ii) the next business day after being sent by Federal Express or similar
overnight delivery prepaid; or (iii) three (3) days after being mailed via registered or
certified mail, postage prepaid, return receipt requested, to either party at the address
set forth in the preamble of this Agreement, or to such other address as such party shall
give by notice hereunder to the other party.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 11.2
    Severability of Provisions. If any provision of this Agreement shall be declared
by a court of competent jurisdiction to be invalid, illegal or incapable of being
enforced in whole or in part, such provision shall be interpreted so as to remain
enforceable to the maximum extent permissible consistent with applicable law and the
remaining conditions and provisions or portions thereof shall nevertheless remain in full
force and effect and enforceable to the extent they are valid, legal and enforceable, and
no provision shall be deemed dependent upon any other covenant or provision unless so
expressed herein.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 11.3
    Binding Effect. This Agreement shall be binding upon and shall inure to the
benefit of the Company, its successors and assigns and the Company shall require any
successors and assigns to expressly assume and agree to perform this Agreement in the
same manner and to the same extent that the Company would be required to perform it if no
such succession or assignment had taken place.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 11.4
    Entire Agreement Modification. This Agreement and the exhibits attached hereto
contains the entire agreement of the parties relating to the subject matter hereof, and
any prior agreements or understandings between the parties hereto which are not set forth
herein are hereby superceded. No modification of this Agreement shall be valid unless
made in writing and signed by the parties hereto.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 11.5
    Indemnification. The Company and Employee shall execute an indemnification
agreement in the form attached hereto as Exhibit A.
| | ---------------------------------------------------------------------------------------------------------------------------------------

| | 11.6
    Governing Law. This Agreement shall be governed by and construed and enforced in
accordance with the laws of the State of New Jersey without regard to principles of
conflict of laws.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 
| | 

| | 11.7
     Headings.The headings of paragraphs are inserted for convenience and shall not
affect any interpretation of this Agreement.
| | -------------------------------------------------------------------------------------------------------------------------------------

| | 11.8
    Counterparts. This Agreement may be executed in one or more counterparts, each of
which shall be deemed an original, and all of which together shall be deemed to be one
and the same instrument.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

IN
WITNESS WHEREOF, the parties hereto, intending to be legally bound hereby, have executed
this Agreement as of the day and year first above written.



MICHAEL ZELIN/s/ MICHAEL ZELIN



Michael Zelin



i-STAT CORPORATION/s/ WILLIAM P. MOFFITT



William P. Moffitt
                                                 President and Chief Executive Officer