Document:

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                                                                    EXHIBIT 10.1

January 5, 2005

          Confidential Materials omitted and field separately with the
        Securities and Exchange Commission. Asterisks denote omissions.

                           CRITICAL THERAPEUTICS, INC.

                                       AND

                              BECKMAN COULTER, INC.

                                LICENSE AGREEMENT

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January 5, 2005

THIS LICENSE AGREEMENT is made as of the Effective Date

BETWEEN:

CRITICAL THERAPEUTICS, INC., a company incorporated under the laws of the State
of Delaware, and having its principal place of business at 60 Westview Street,
Lexington, MA 02421; and

BECKMAN COULTER, INC., a company incorporated under the laws of Delaware, having
its principal place of business at 4300 N. Harbor Boulevard, Fullerton,
California 92834.

RECITALS:

(A)   CTI is the owner of certain patent and other intellectual property rights
      throughout the world in relation to HMGB-1.

(B)   CTI wishes to grant to BCI, and BCI wishes to obtain from CTI, certain
      rights and licenses to utilize those CTI patents and other intellectual
      property rights to evaluate, create and market, directly or indirectly,
      certain products under and according to the provisions of this Agreement.

NOW IT IS HEREBY AGREED AS FOLLOWS:

                     CLAUSE 1 -- DEFINITIONS, INTERPRETATION

1.1   Definitions:

      "AFFILIATE" shall mean any corporation or entity controlling, controlled
      or under common control with CTI or BCI, as the case may be. For the
      purposes of this Agreement, "control" shall mean the direct or indirect
      ownership of more than 50% of the issued voting shares or other voting
      rights of the subject entity to elect directors, or if not meeting the
      preceding criteria, any entity owned or controlled by or owning or
      controlling at the maximum control or ownership right permitted in the
      country where such entity exists.

      "AGREEMENT" shall mean this license agreement (which expression shall be
      deemed to include the Recitals and Schedules hereto).

      "ASR PRODUCT" shall mean any Product labelled by BCI as an analyte
      specific reagent under and according to the requirements of the FDA.

      "BCI" shall mean Beckman Coulter, Inc., a Delaware corporation.

      "CTI" shall mean Critical Therapeutics, Inc, a Delaware corporation, and
      its Affiliates.

      "CTI IMPROVEMENTS" shall mean any and all improvements to the CTI Patents,
      the CTI Know-How, or the CTI Monoclonal Antibody that have been conceived,

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      created, developed and/or otherwise invented by or on behalf of CTI and/or
      BCI during the Term. For the sake of clarity, it is understood that BCI
      improvements included within this definition shall be strictly limited to
      improvements in a kit or assemblage of reagents for measuring only HMGB-1
      in humans or animals, and any BCI improvement that has application to a
      kit or assemblage of reagents for the measurement of any other analyte is
      not within the scope of this definition.

      "CTI INTELLECTUAL PROPERTY" shall mean the CTI Know-How, the CTI Patents,
      the CTI Improvements, and the CTI Monoclonal Antibody.

      "CTI KNOW-HOW" shall mean, any and all rights owned, licensed or
      controlled by CTI as of the Effective Date to any scientific,
      pharmaceutical or technical information, data, discovery, invention
      (whether patentable or not), know-how, substances, techniques, processes,
      systems, formulations, designs and expertise relating to the design,
      development, manufacture, regulatory clearance, use, importation, sale or
      support of HMGB-1 in diagnostics (including without limitation in any
      existing or potential Product), including antibodies to HMGB-1, whether or
      not generally known to the public.

      "CTI MONOCLONAL ANTIBODY" shall mean one or more monoclonal antibodies to
      HMGB-1 developed by or on behalf of CTI and which CTI has the right to
      license or sub-license to BCI.

      "CTI PATENTS" shall mean any and all rights under any and all patent
      applications and/or patents, now existing, currently pending or hereafter
      filed or acquired or licensed by CTI relating to the use of HMGB-1 in
      diagnostics (including without limitation in any existing or potential
      Product), including antibodies to HMGB-1, including without limitation as
      of the Effective Date those patent applications and patents set forth in
      Schedule 1, and any foreign counterparts thereof and all divisionals,
      continuations, continuations-in-part, any foreign counterparts thereof and
      all patents issuing on any of the foregoing, and any foreign counterparts
      thereof, together with all registrations, reissues, re-examinations,
      supplemental protection certificates, or extensions thereof, and any
      foreign counterparts thereof.

      "EFFECTIVE DATE" shall mean last in time of the dates adjacent to the
      signatures of the authorized representatives of the parties on the
      signature page of this Agreement.

      "FDA" shall mean the United States Food and Drug Administration or any
      other successor agency.

      "FIELD" shall mean the measurement of HMGB-1 in humans or animals.

      "FORCE MAJEURE" shall mean causes beyond a party's reasonable control,
      including acts of God, fires, floods, earthquakes, riots, strikes, acts of
      war, or intervention of a Governmental Authority.

      "FORMAL PRODUCT DEVELOPMENT" shall mean the portion of BCI's product
      design and development process starting with Design Control as that term
      is defined in BCI's [**] in effect as of the Effective Date and as may be
      amended, superseded or otherwise modified by BCI from time to time. As of
      the Effective Date,

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      Design Control begins on the date that the first [**] is conducted for the
      Product. The portion of BCI's [**] before Design Control is not within the
      scope of this definition.

      "GOVERNMENTAL AUTHORITY" shall mean all governmental and regulatory
      bodies, agencies, departments or entities which regulate, direct or
      control commercial and other related activities in or with the Territory.

      "HMGB-1" shall mean high mobility group protein 1 as described in the CTI
      Patents set forth in Schedule 1.

      "IVD PRODUCT" shall mean any Product labelled by BCI as an in vitro
      diagnostic product under and according to the requirements of the FDA.

      "NET SALES" shall mean the amount (the "Amount") received by BCI, BCI's
      Affiliates, any sublicensee of BCI under this Agreement ("Sublicensees"),
      or the Affiliates of the Sublicensees from the sale of Products to third
      (non-Affiliated) parties, in all instances less the Normal Discounts (as
      that term is defined in this Paragraph). BCI and its Sublicensees will
      determine the Amount in conformity with the procedures that BCI or its
      Sublicensees generally uses or may generally use or generally uses for the
      purpose of this Agreement to recognize revenue pursuant to Statements of
      Financial Accounting Standards ("SFAS"), issued by the Financial
      Accounting Standards Board, applicable to U.S. corporations with
      securities traded on U.S. exchanges (or equivalent or successor standards
      or boards, or for non-U.S. Sublicensees the equivalent standards or boards
      in the country in which the Sublicensee is organized), including those
      procedures BCI or its Sublicensees may use to allocate, apportion,
      attribute or otherwise assign revenue and expenses to the Products when
      the Products are sold alone or when the Products are sold in any
      combination with other products and/or services. For purposes of this
      Paragraph the "Normal Discounts" means any one or combination of the
      following four deductions (but only for such deductions actually given to
      the customer): (i) normal and customary trade, quantity and cash discounts
      actually allowed and taken, (ii) credits actually given for returned
      goods, (iii) freight insurance and custom broker fees if separately
      itemized, and (iv) value-added sales, use or turnover taxes, excise taxes
      and custom duties.

      "PRODUCT" shall mean a kit or assemblage of reagents for measuring HMGB-1
      in humans or animals that (i) employs a CTI Monoclonal Antibody or (ii) in
      the country of manufacture, use or sale would infringe, or the importation
      of which into the country would infringe, but for the CTI License granted
      to BCI under this Agreement, at least one issued and unexpired claim in
      the CTI Patents.

      "PROSECUTE" shall mean in relation to a class of intellectual property:

            (a)   to secure the grant of any patent application within such
                  class;

            (b)   to file and prosecute patent applications on patentable
                  inventions and discoveries relating to that class;

            (c)   to defend all such applications against third party
                  oppositions; and

            (d)   to maintain in force any issued letters patent relating to the
                  same.

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      "RUO PRODUCT" shall mean any Product labelled by BCI as a research use
      only product under and according to the requirements of the FDA.

      "TERM" shall mean the term of this Agreement, as set out in Clause 8.

      "TERRITORY" shall mean all of the countries of the world.

      "$" shall mean United States Dollars.

1.2   Further Definitions:

In addition, the following definitions have the meanings in the Clauses
corresponding thereto, as set forth below:

<TABLE>
<CAPTION>
DEFINITION                            CLAUSE
<S>                                   <C>
"Confidential Information"            9.1.1
"Covered Products"                    4.2.1.1
"Disclosing Party"                    9.3.1
"CTI License"                         2.1
"Term"                                7.1
"Statement"                           6.1
"Sublicensees"                        Definition of Net Sales, above
</TABLE>

1.3   Interpretation:

In this Agreement:

            1.3.1 the singular includes the plural and vice versa, the masculine
                  includes the feminine and vice versa and references to natural
                  persons include corporate bodies, partnerships and vice versa;

            1.3.2 any reference to a Clause or Schedule, unless otherwise
                  specifically provided, shall be respectively to a Clause or
                  Schedule of this Agreement;

            1.3.3 the headings of this Agreement are for ease of reference only
                  and shall not affect its construction or interpretation;

            1.3.4 the expressions "include", "includes", "including", "in
                  particular" and similar expressions shall be construed without
                  limitation; and

            1.3.5 the word "or" shall not be construed to be exclusive.

                             CLAUSE 2 -- THE LICENSE

2.1   CTI License to BCI:

Subject to the terms of this Agreement, CTI hereby grants to BCI and BCI's
Affiliates as of the Effective Date for the Term an exclusive license (the "CTI
LICENSE") to the CTI Intellectual Property to evaluate, develop, make, have
made, import, use, offer for sale and sell or otherwise dispose of Products in
the Territory.

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2.2   Sub-licensing by BCI:

BCI shall be entitled, subject to the prior written consent of CTI which shall
not be unreasonably withheld or delayed, to grant sub-licenses under the CTI
License in respect of the CTI Intellectual Property; PROVIDED, HOWEVER, that CTI
may withhold its consent of any sub-license that includes the right to
manufacture the CTI Monoclonal Antibody. Any sub-license granted hereunder shall
be in the same terms mutatis mutandis as the terms of this Agreement insofar as
they are applicable (it being understood that the right to manufacture the CTI
Monoclonal Antibody need not be included in any such sub-license), but excluding
the right to grant a sub-license. BCI shall be liable to CTI for the acts and
omissions of any sub-licensee to the same extent that BCI would be liable to CTI
for the acts and omissions of BCI under the express provisions of this
Agreement. Where a sub-license has been granted under this Clause, such
sub-license shall automatically terminate if this Agreement terminates.

                        CLAUSE 3 -- INTELLECTUAL PROPERTY

3.1   Ownership of Intellectual Property:

      CTI shall remain the owner of the CTI Intellectual Property.

3.2   Patent prosecution and maintenance:

      CTI, at its sole discretion and expense, may Prosecute the CTI
      Intellectual Property in the Field in the Territory.

3.3   Enforcement:

      3.3.1 BCI shall promptly inform CTI in writing of any actual or alleged
            unauthorized use of the CTI Intellectual Property by a third party
            of which it becomes aware and provide CTI with any such information
            of such unauthorized use as is reasonable available to BCI.

      3.3.2 If BCI becomes aware of any apparent infringement of the CTI
            Intellectual Property in the Field in the Territory, it may notify
            CTI in writing of such apparent infringement, provide to CTI
            information in BCI's possession of such apparent infringement, and
            request in writing that CTI investigate such apparent infringement.
            If within six months of BCI's notice CTI has not explained to BCI's
            commercially reasonable satisfaction why the apparent infringement
            is not an infringement of the CTI Intellectual Property, stopped
            such apparent infringement, or caused commencement of litigation
            against the apparent infringer, BCI's obligations to pay royalties
            under this Agreement for those Products sold in each country as the
            apparently infringing products, shall be reduced by [**]% for a
            [**]royalty reduction period. If after the [**] royalty reduction
            period CTI has not explained to BCI's commercially reasonable
            satisfaction why the apparent infringement is not an infringement of
            the CTI Intellectual Property, stopped such apparent infringement,
            or caused commencement of litigation against the apparent infringer,
            BCI's obligations to pay royalties under this Agreement for those
            Products sold in each country as the apparently infringing products
            shall be suspended

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            and shall not resume until such time as CTI has explained to BCI's
            commercially reasonable satisfaction why the apparent infringement
            is not an infringement of the CTI Intellectual Property, stopped
            such apparent infringement, or caused commencement of litigation
            against the apparent infringer.

3.4   Patent Marking

      3.4.1 BCI shall mark or have marked all patent number(s) in respect of the
            CTI Patents on all Product, or otherwise reasonably communicate to
            the trade the existence of any CTI Patents for the countries within
            the Territory in such a manner as to ensure compliance with, and
            enforceability under, applicable laws.

                        CLAUSE 4 -- FINANCIAL PROVISIONS

4.1   License Fees:

      4.1.1 In consideration of the CTI License, BCI shall pay to CTI the
      following non-refundable amounts:

            4.1.1.1  a Product evaluation license fee of $250,000 within thirty
                     (30) days after the Effective Date;

            4.1.1.2  if within [**] after the Effective Date BCI provides a
                     written notice to CTI that BCI exercises its right and
                     option under this Clause 4.1.1.2 to permit (but not
                     require) BCI to undertake Formal Product Development, a
                     Product development license fee of $[**] within thirty (30)
                     days after the date of such written notice (provided
                     however that BCI's payment of the Product development
                     license fee within [**] months after the Effective Date
                     shall be deemed to be both BCI's option exercise by written
                     notice and license fee payment under this Clause 4.1.1.2);
                     and

            4.1.1.3  a Product first commercialization license fee of $[**]
                     within sixty (60) days after the first commercial sale (if
                     such first commercial sale should ever occur) of a Product.

4.2   Royalty on Sales:

      4.2.1 In further consideration of the CTI License granted to BCI under
            this Agreement, BCI shall pay to CTI a royalty on the Net Sales by
            BCI and BCI's Affiliates as follows:

            4.2.1.1  For Products which, in the country of manufacture, use or
                     sale would infringe, or the importation of which into the
                     country would infringe, but for the CTI License granted to
                     BCI under this Agreement, at least one issued and unexpired
                     claim in the CTI Patents ("COVERED PRODUCTS")

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                     and whether or not a CTI Monoclonal Antibody is used in the
                     Product:

                  [**]% of Net Sales of [**] Products; and

                  [**]% of Net Sales of [**] Products and [**] Products.

            4.2.1.2  For Products in which a CTI Monoclonal Antibody is used but
                     which are not Covered Products:

                  [**]% of Net Sales of [**] Products; and

                  [**]% of Net Sales of [**] and [**] Products.

      4.2.2 In consideration of the BCI's right to grant sublicenses under this
            Agreement, BCI shall pay to CTI [**] percent ([**]%) of any license
            fees and/or milestone fees actually received by BCI from its
            Sublicensees and [**] percent ([**]%) of any earned royalties
            actually received by BCI from its Sublicensees.

      4.2.3 If BCI makes, uses or sells any Product that, because of the use of
            the CTI Monoclonal Antibody or any other antibodies to HMGB-1,
            represents a substantial risk that a court could find infringement
            of one or more claims of a third party patent, then BCI, if it has
            not already done so, may negotiate with and obtain from the third
            party a license on terms that BCI deems appropriate. As used in the
            preceding sentence, the determination as to the substantial risk of
            infringement is determined by legal counsel of BCI's choice without
            regard to the validity of the one or more claims. If BCI or any
            Sublicensee is required to pay earned royalties to any such third
            party, [**]% of such earned royalties are creditable against
            royalties otherwise due to CTI under Clause 4.2.1 above, provided
            that the royalties otherwise payable to CTI in a given year shall
            not be reduced by more than [**]%. No action taken by or on behalf
            of BCI or any Sublicensee under this Paragraph 4.8 may be construed
            as any admission by BCI or any Sublicensee.

                    CLAUSE 5 -- PAYMENTS, REPORTS AND AUDITS

5.1   BCI shall keep or cause to be kept true and accurate records of sales of
      the Product, the items deducted from the amount in calculating the Net
      Sales, the Net Sales and the royalties payable to CTI under Clause 4.
      Beginning with the calendar quarter during which the first commercial sale
      of a Product in the Territory occurs and for each calendar quarter
      thereafter during the term of this Agreement, BCI shall deliver to CTI a
      written statement (the "STATEMENT") thereof within [**] following the
      end of each such calendar quarter. The Statement shall outline the
      calculation of the Net Sales during that calendar quarter, the applicable
      percentage rate, and a computation of the sums due to CTI.

5.2   All royalties shall be paid in U.S. dollars in the United States. BCI will
      translate sales made by BCI, its Affiliates and Sublicensees and their
      Affiliates in currencies other than U.S. dollars in conformity with the
      procedures it uses

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      generally to translate foreign currency revenues and expenses pursuant to
      Statements of Financial Accounting Standards ("SFAS") issued by the
      Financial Accounting Standards Board (and in particular, as of the
      Effective Date of this Agreement, SFAS 52) applicable to U.S. corporations
      with securities traded on U.S. exchanges.

5.3   If BCI is required by law to pay or withhold any income or other taxes on
      behalf of CTI with respect to any monies payable to CTI under this
      Agreement:

      5.3.1 BCI shall deduct them from the amount of such monies due;

      5.3.2 any such tax required to be paid or withheld shall be an expense of
            and borne solely by CTI;

      5.3.3 BCI shall promptly provide CTI with a certificate or other
            documentary evidence to enable CTI to support a claim for a refund
            or a foreign tax credit.

5.4   CTI and BCI agree to co-operate in all reasonable respects necessary to
      take advantage of any double taxation agreements or similar agreements as
      may, from time to time, be available in order to enable BCI to make such
      payments to CTI without any deduction or withholding.

5.5   Payment of royalties shall be made by BCI to CTI upon provision of the
      Statement.

5.6   All payments due hereunder shall be made to the designated bank account of
      CTI in accordance with such timely written instructions as CTI shall from
      time to time provide.

5.7   For the [**] period following the close of each calendar year of the
      Agreement, BCI will, in the event that CTI reasonably requests such
      access, provide CTI's independent certified accountants (reasonably
      acceptable to BCI) with access, during regular business hours and subject
      to the confidentiality provisions as contained in this Agreement, to BCI's
      books and records relating to the Product, solely for the purpose of
      verifying the accuracy and reasonable composition of the calculations
      hereunder for the calendar year then ended. CTI shall not make more than
      one such request annually. After the [**] period, all Statements and
      payments made for the respective calendar year shall be conclusively
      presumed to be true and correct and CTI shall have no right to audit and
      BCI shall have no liability whatsoever to CTI with respect to such
      Statements and payments.

5.8   In the event of a discovery of a discrepancy for the applicable period, a
      correcting payment shall be made forthwith between the parties. If the
      discrepancy is a result of an underpayment by BCI and such underpayment
      exceeds 5% of the amount otherwise due CTI for the applicable period, then
      additionally the cost of such accountants shall be borne by BCI.

                      CLAUSE 6 -- DURATION AND TERMINATION

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6.1   The term of this Agreement begins as of the Effective Date. Unless
      terminated earlier in accordance with Clauses 6.2, 6.3 or 6.4 below, this
      Agreement expires the later of either the last to expire of the patents
      included in the CTI Patents or the cessation of BCI using the CTI
      Monoclonal Antibody in Products, but any provision of this Agreement which
      by its terms survives the expiration or termination of this Agreement
      shall survive the term and any complete or partial termination of this
      Agreement as if those provisions were a separate understanding between the
      parties, and any definition required or reasonably necessary to give
      effect to such surviving provisions likewise survives the expiration or
      termination of this Agreement. Upon any expiration or termination of this
      Agreement, all sublicenses granted by BCI under this Agreement shall
      immediately expire.

6.2   If BCI does not exercise the option of Clause 4.1.1.2, then this Agreement
      expires twenty five (25) months plus one day after the Effective Date.

6.3   In further addition to the rights of termination provided for elsewhere in
      this Agreement, BCI shall be entitled to terminate this Agreement on
      ninety (90) days written notice.

6.4   In addition to the rights of termination provided for elsewhere in this
      Agreement, either party will be entitled forthwith to terminate this
      Agreement by written notice to the other party if:

      6.4.1 that other party commits a material breach of any of the provisions
            of this Agreement, and fails to cure the same within 90 days after
            receipt of a written notice from another party hereto giving full
            particulars of the breach and requiring it to be remedied; provided,
            that if the breaching party has proposed a course of action to cure
            the breach and is acting in good faith to cure same but has not
            cured the breach by the 90th day, such period shall be extended by
            such period as is reasonably necessary to permit the breach to be
            cured, provided that such period shall not be extended by more than
            180 days, unless otherwise agreed in writing by the parties;

      6.4.2 that other party goes into liquidation under the laws of any
            applicable jurisdiction (except for the purposes of amalgamation or
            reconstruction and in such manner that the company resulting
            therefrom effectively agrees to be bound by or assume the
            obligations imposed on that other party under this Agreement);

      6.4.3 a receiver, administrator, examiner, trustee or similar officer is
            appointed over all or substantially all of assets of that other
            party under the laws of any applicable jurisdiction; or

      6.4.4 any proceedings are filed or commenced by that other party under
            bankruptcy, insolvency or debtor relief laws, or anything analogous
            to any of the foregoing under the laws of any applicable
            jurisdiction occurs in relation to that other party.

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                     CLAUSE 7 -- CONSEQUENCES OF TERMINATION

7.1   Upon exercise of those rights of termination specified in Clause 6 in this
      Agreement, this Agreement shall, subject to the provisions of the
      Agreement which survive the termination of the Agreement, automatically
      terminate forthwith and be of no further legal force or effect.

7.2   Upon termination of the Agreement by either party, the following shall be
      the consequences relating to the Territory or the particular country, as
      applicable:

      7.2.1 any sums that were due from BCI to CTI under the provisions of
            Clause 4 or otherwise howsoever prior to the termination or expiry
            hereof shall be paid in full within 60 days of termination of this
            Agreement and CTI shall not be liable to repay to BCI any amount of
            money paid or payable by BCI to CTI up to the date of the
            termination of this Agreement;

      7.2.2 all confidentiality provisions set out herein shall remain in full
            force and effect for a period of 2 years from the date of
            termination or expiry hereof;

      7.2.3 the rights of inspection and audit shall continue in force for the
            period referred to in the relevant provisions of this Agreement;

      7.2.4 the CTI License and any sub-license granted under Clause 2.2.1 shall
            automatically terminate; and

      7.2.5 if termination is effected by CTI under Clause 6.4, permit BCI for a
            period not exceeding [**] to exhaust its stocks of the
            Product subject to the relevant provisions of this Agreement
            including financial provisions.

                       CLAUSE 8 -- WARRANTY AND INDEMNITY

8.1   CTI represents and warrants to BCI as of the Effective Date, as follows:

      8.1.1 CTI has the right to enter into this Agreement and grant the CTI
            License.

      8.1.2 There are no agreements between CTI and any third party that
            conflict with the CTI License.

      8.1.3 There are no infringement proceedings pending against CTI in
            connection with the CTI Patents in relation to the Field in the
            Territory.

8.2   BCI represents and warrants to CTI as of the Effective Date, as follows:

      8.2.1 BCI has the right to enter into this Agreement.

      8.2.2 There are no agreements between BCI and any third party that
            conflict with this Agreement.

8.3   BCI agrees to and shall defend, indemnify and hold CTI, its employees,
      agents and officers harmless, including professional fees necessary to
      consider, advise and defend, from and against any suit or proceeding
      alleging injury to persons, including death, or property and any
      liability, damages or penalties awarded or agreed to therein and resulting
      from or arising out of BCI's negligence in the development, manufacture,
      storage, packaging or transport or other use of the Products.

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8.4   With reference to Clause 2.2, BCI shall indemnify and hold harmless CTI to
      the extent that any claims arise out of any such acts or omissions of any
      sub-licensee but only the same extent that BCI would be liable to CTI
      under the provisions of this Agreement.

8.5   The party seeking an indemnity shall:

      8.6.1 fully and promptly notify the other party of any claim or
            proceedings, or threatened claim or proceedings;

      8.5.2 permit the indemnifying party to take full control of such claim or
            proceedings, with counsel of the indemnifying party's choice,
            provided that the indemnifying party shall reasonably and regularly
            consult with the indemnified party in relation to the progress and
            status of such claim or proceedings;

      8.5.3 co-operate in the investigation and defense of such claim or
            proceedings; and

      8.5.4 take all reasonable steps to mitigate any loss or liability in
            respect of any such claim or proceedings.

      The indemnifying party may settle a Claim on terms which provide only for
      monetary relief and do not include any admission of liability. Save as
      aforesaid, neither the indemnifying party nor the party to be indemnified
      shall acknowledge the validity of, compromise or otherwise settle any
      Claim without the prior written consent of the other, which shall not be
      unreasonably withheld.

8.6   EXCEPT AS SET FORTH IN THIS CLAUSE 8, CTI IS GRANTING THE CTI LICENSE
      HEREUNDER ON AN "AS IS" BASIS WITHOUT REPRESENTATION OR WARRANTY WHETHER
      EXPRESS OR IMPLIED INCLUDING WARRANTIES OF MERCHANTABILITY OR FITNESS FOR
      A PARTICULAR PURPOSE, OR INFRINGEMENT OF THIRD PARTY RIGHTS, AND ALL SUCH
      WARRANTIES ARE EXPRESSLY DISCLAIMED.

8.7   WITHOUT PREJUDICE TO THE OBLIGATION OF EITHER PARTY TO INDEMNIFY THE OTHER
      IN RESPECT OF CLAIMS BY A THIRD PARTY, NOTWITHSTANDING ANYTHING TO THE
      CONTRARY IN THIS AGREEMENT, CTI AND BCI SHALL NOT BE LIABLE TO THE OTHER
      BY REASON OF ANY REPRESENTATION OR WARRANTY, CONDITION OR OTHER TERM OR
      ANY DUTY OF COMMON LAW, OR UNDER THE EXPRESS TERMS OF THIS AGREEMENT, FOR
      ANY CONSEQUENTIAL, SPECIAL OR INCIDENTAL OR PUNITIVE LOSS OR DAMAGE
      (WHETHER FOR LOSS OF CURRENT OR FUTURE PROFITS, LOSS OF ENTERPRISE VALUE
      OR OTHERWISE) AND WHETHER OCCASIONED BY THE NEGLIGENCE OF THE RESPECTIVE
      PARTIES, THEIR EMPLOYEES OR AGENTS OR OTHERWISE.

8.8   NEITHER PARTY SHALL UNDER NO CIRCUMSTANCES HAVE ANY LIABILITY TO THE OTHER
      PARTY AS A RESULT OF BCI BEING UNABLE TO EVALUATE, DEVELOP, MANUFACTURE,
      OR SELL THE PRODUCT, HAVING TO CEASE SELLING THE PRODUCT OR HAVING

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      TO DELAY THE LAUNCH OF THE PRODUCT, WHETHER THE SAME ARISES AS A RESULT OF
      ANY DEFAULT OR NEGLIGENCE OF THE FIRST PARTY, OR ANY ALLEGED ACT OF
      INFRINGEMENT OF THE RIGHTS OF A THIRD PARTY OR OTHERWISE.

8.9   Where this Agreement provides for the indemnification of a party to this
      Agreement or for the limitation of a party's liability, such
      indemnification and/or limitation (as the case may be) shall also apply
      for the benefit of such party's Affiliates and the employees, officers,
      directors and agents of any of them, acting in such capacity.

                      CLAUSE 9 -- MISCELLANEOUS PROVISIONS

9.1   Confidentiality:

      9.1.1 The parties agree that it will be necessary, from time to time, to
            disclose to each other confidential and proprietary information,
            including without limitation, Statements, sales forecasts, business
            plans, inventions, trade secrets, specifications, designs, data,
            know-how and other proprietary information relating to HMGB-1, the
            Field, the Product, processes, services and business of the
            disclosing party.

            The foregoing which is disclosed in writing by the disclosing party
            shall be referred to collectively as "CONFIDENTIAL INFORMATION".

      9.1.2 Any Confidential Information disclosed by the disclosing party shall
            be used by the receiving party exclusively for the purposes of
            fulfilling the receiving party's obligations under this Agreement
            and for no other purpose.

      9.1.3 Save as otherwise specifically provided herein, and subject to
            Clauses 9.2 and 9.3, each party shall disclose Confidential
            Information of the other party only to those employees,
            representatives and agents requiring knowledge thereof in connection
            with fulfilling the party's obligations under this Agreement, and
            not to any other third party.

            Each party shall exercise the same standard of care as it would
            itself exercise in relation to its own confidential information (but
            in no event less than a reasonable standard of care) to protect and
            preserve the proprietary and confidential nature of the Confidential
            Information disclosed to it by the other party.

      9.1.4 Any breach of this Clause 9.1 by any person informed by one of the
            parties is considered a breach by the party itself.

      9.1.5 Confidential Information shall be deemed not to include:

            9.1.5.1  information which is in the public domain;

            9.1.5.2  information which is made public through no breach of this
                     Agreement;

                                      13
<PAGE>

January 5, 2005

            9.1.5.3  information required or advisable in order to secure the
                     necessary regulatory approvals to manufacture or market the
                     Products,

            9.1.5.4  information which is independently developed by a party, as
                     evidenced by such party's records; or

            9.1.5.5  information that becomes available to a receiving party on
                     a non-confidential basis, whether directly or indirectly,
                     from a source other than the other party hereto, which
                     source did not acquire this information on a confidential
                     basis.

      9.1.6 The provisions relating to confidentiality in this Clause 9.1 shall
            remain in effect during the term of this Agreement, and for a period
            of 2 years following the expiration or earlier termination of this
            Agreement.

      9.1.7 The parties agree that the obligations of this Clause 9.1 are
            necessary and reasonable in order to protect the parties' respective
            businesses, and each party agrees that monetary damages may be
            inadequate to compensate a party for any breach by the other party
            of its covenants and agreements set forth herein.

9.2   Announcements:

      Except as required by a Party to meet its obligation to make necessary
      disclosure under applicable securities laws and listing agency
      regulations, neither Party will issue any other press release or make
      other public disclosures related to the execution of this Agreement or the
      terms contained therein without the prior written approval of the other
      (which approval may be withheld for any reason).

9.3   Required Disclosures:

      9.3.1 A party (the "DISCLOSING PARTY") will be entitled to make an
            announcement or public statement concerning the existence, subject
            matter or any term of this Agreement, or to disclose Confidential
            Information that the Disclosing Party is required to make or
            disclose pursuant to:

            9.3.1.1  a valid order of a court or Governmental Authority; or

            9.3.1.2  any other requirement of law or any securities or stock
                     exchange;

            provided that if the Disclosing Party becomes legally required to
            make such announcement, public statement or disclosure due to Clause
            9.3.1.1, the Disclosing Party shall give the other party or parties
            hereto prompt notice of such fact to enable the other party or
            parties hereto to seek a protective order or other appropriate
            remedy concerning any such announcement, public statement or
            disclosure, including confidential treatment and/or appropriate
            redactions.

                                      14
<PAGE>

January 5, 2005

            A Disclosing Party shall have the right to make any announcements,
            public statements or disclosures pursuant to Clause 9.3.1.2 without
            the review of consent of the other Party.

            The Disclosing Party shall fully co-operate with the other party or
            parties hereto in connection with that other party's or parties'
            efforts to obtain any such order or other remedy.

            If any such order or other remedy does not fully preclude
            announcement, public statement or disclosure, the Disclosing Party
            shall make such announcement, public statement or disclosure only to
            the extent that the same is legally required.

9.4   Assignment:

      9.4.1 Except as provided for in this Clause 9.4, this Agreement may not be
            assigned by a party without the prior written consent of the other,
            which shall not be unreasonably withheld or delayed; PROVIDED,
            HOWEVER, that either party shall be entitled to assign its rights
            under this Agreement to an Affiliate for any reason or to an
            unaffiliated third party in connection with the sale of all or
            substantially all of the business and assets of the assigning party
            to which the subject matter of this Agreement pertains. Any
            permitted assignee shall assume all obligations of its assignor
            under this Agreement or under the respective rights or obligations
            actually assigned..

9.5   Parties bound:

This Agreement shall be binding upon and enure for the benefit of parties
hereto, their successors and permitted assigns.

9.6      Severability:

If any provision in this Agreement is deemed to be, or becomes invalid, illegal,
void or unenforceable under applicable laws:-

      9.6.1 such provision will be deemed amended to conform to applicable laws
            so as to be valid and enforceable; or

      9.6.2 if it cannot be so amended without materially altering the intention
            of the parties, it will be deleted the validity, legality and
            enforceability of the remaining provisions of this Agreement shall
            not be impaired or affected in any way.

9.7   Force Majeure:

Neither party to this Agreement shall be liable for failure or delay in the
performance of any of its obligations hereunder if such failure or delay results
from Force Majeure, but any such failure or delay shall be remedied by such
party as soon as practicable.

9.8   Relationship of the parties:

                                      15
<PAGE>

January 5, 2005

      9.8.1 Nothing contained in this Agreement is intended or is to be
            construed to constitute any of the parties hereto as partners or
            members of a joint venture or any party as an employee of another
            party.

      9.8.2 No party hereto shall have any express or implied right or authority
            to assume or create any obligations on behalf of or in the name of
            any other party or to bind another party to any contract, agreement
            or undertaking with any third party.

9.9   Amendments:

No amendment, modification or addition hereto shall be effective or binding on
any party hereto unless set forth in writing and executed by a duly authorised
representative of all parties hereto.

9.10  Waiver:

No waiver of any right under this Agreement shall be deemed effective unless
contained in a written document signed by the party charged with such waiver,
and no waiver of any breach or failure to perform shall be deemed to be a waiver
of any future breach or failure to perform or of any other right arising under
this Agreement.

9.11  Entire Agreement / No Effect on Other Agreements:

      9.11.1 Each of the parties hereto hereby acknowledges that in entering
             into this Agreement it has not relied on any representation or
             warranty except as expressly set forth herein or in any document
             referred to herein.

      9.11.2 This Agreement sets forth all of the agreements and understandings
             between the parties with respect to the subject matter hereof, and
             supersede and terminate all prior agreements and understandings
             between the parties with respect to the subject matter hereof, but
             without prejudice to any accrued rights and obligations thereunder.
             There are no agreements or understandings with respect to the
             subject matter hereof, either oral or written, between the parties
             other than as set forth in this Agreement.

      9.11.3 Nothing in this Clause 9.11 shall exclude any liability which any
             party would otherwise have to the other party or any right which
             either of them may have to rescind this Agreement in respect of any
             statements made fraudulently by the other prior to the execution of
             this Agreement or any rights which either of them may have in
             respect of fraudulent concealment by the other.

9.12  Governing law:

      9.12.1 This Agreement shall be governed by and construed in accordance
             with the laws of the State of Delaware, excluding its conflict of
             laws rules.

9.13  Notice:

      9.13.1 Any notice to be given under this Agreement shall be sent in
             writing in English by registered or recorded delivery post,
             reputable overnight courier or fax to:

                                      16
<PAGE>

January 5, 2005

            CTI at

            Critical Therapeutics, Inc.
            60 Westview Street
            Lexington, MA 02421

            Attention:  Chief Operating Officer
            Fax:        (781) 402-5729

      To BCI:           Beckman Coulter, Inc.
                        Clinical Diagnostics Division
                        200 South Kraemer Boulevard
                        Brea, California 92821
                        Attention: President
                        Fax: (714) 961-4538

      With a copies to: Beckman Coulter, Inc
                        1000 Lake Hazeltine Drive
                        Chaska, Minnesota 55318
                        Fax: (952) 368-1280
                        Attention: Business Development Manager
                        and:

                        Beckman Coulter, Inc
                        4300 North Harbor Boulevard
                        Fullerton, California 92834-3100
                        Attention: General Counsel
                        Fax: (714) 773-7936

            or to such other address(es) and fax numbers as may from time to
            time be notified by either party to the other hereunder.

     9.13.2 Any notice sent by mail shall be deemed to have been delivered
            within 7 working days after despatch or delivery to the relevant
            courier and any notice sent by fax shall be deemed to have been
            delivered upon confirmation of receipt. Notice of change of address
            shall be effective upon receipt.

9.14  Further assurances:

At the request of any of the parties, the other party or parties shall (and
shall use reasonable efforts to procure that any other necessary third parties
shall) execute and do all such documents, acts and things as may reasonably be
required subsequent to the signing of this Agreement for assuring to or vesting
in the requesting party the full benefit of the terms hereof.

9.15  Counterparts:

                                      17
<PAGE>

January 5, 2005

This Agreement may be executed in any number of counterparts, each of which when
so executed shall be deemed to be an original and all of which when taken
together shall constitute this Agreement.

IN WITNESS WHEREOF the parties have executed this Agreement as of the Effective
Date.

SIGNED

/s/ Trevor Phillips
-------------------------

January 10th 2005
(date)

for and on behalf of
CRITICAL THERAPEUTICS, INC.

SIGNED

/s/ Scott Garrett
-------------------------

Jan 7, 2005
(date)

for and on behalf of
BECKMAN COULTER, INC.

                                      18
<PAGE>

January 5, 2005

                             SCHEDULE 1 CTI PATENTS

<TABLE>
<CAPTION>
CTI FILE                                        PATENT/APPLICATION
NUMBER             TITLE              COUNTRY         NUMBER
--------  -------------------------  ---------  ------------------
<S>       <C>                        <C>        <C>
[**]      Antagonists of HMG-1 for   U.S.       U.S. Patent No.
          Treating Inflammatory                 6,303,321
          Conditions

[**]      Antagonists of HMG-1 for   U.S.       10/242,056
          Treating Inflammatory
          Conditions

[**]      Antagonists of HMG-1 for   PCT        PCT/US00/03583
          Treating Inflammatory
          Conditions

[**]      Antagonists of HMG-1 for   Australia  36983/00
          Treating Inflammatory
          Conditions

[**]      Antagonists of HMG-1 for   Canada     2,359,926
          Treating Inflammatory
          Conditions

[**]      Antagonists of HMG-1 for   Europe     00 915 762.9
          Treating Inflammatory
          Conditions

[**]      Antagonists of HMG-1 for   Japan      2000-598059
          Treating Inflammatory
          Conditions
</TABLE>

                                      19<PAGE>
                                                                    Exhibit 10.4
                              EMPLOYMENT AGREEMENT

        AGREEMENT (the "Agreement") dated this February 2, 2005 (the "Effective
Date") made by and between Presstek, Inc., a Delaware corporation, its parents,
subsidiaries, divisions, or affiliated entities, successors and assigns (the
"Employer"), and G. Michael McCarthy (the "Employee").

        WHEREAS, the Employee has been employed with the Company as Vice
President, Business Integration and has been promoted to, and is currently
employed as Senior Vice President, Operations of the Employer and both the
Employer and the Employee now wish for the Employee to continue to be employed
as Senior Vice President, Operations of the Employer; and

        WHEREAS, the Employee wishes to continue his employment with the
Employer and the Employer wishes to continue its employment of the Employee
under the terms of this Agreement on the date this Agreement is executed by the
parties as set forth above.

        NOW, THEREFORE, in consideration of the promises hereafter contained,
and for other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the parties hereto AGREE as follows:

1.      Consideration. In consideration for the Employee's execution of this
Agreement, the Employer agrees that the Employee's employment shall continue as
set forth in this Agreement, the Employee shall be permitted access to the
Employer's confidential information and trade secrets and the Employee shall be
eligible to receive post-Term Severance Payments (Section 9) or the Change in
Control payment (Section 12) as set forth in this Agreement (subject to his
compliance with Sections 10 and 11 of this Agreement). The Employee understands,
acknowledges and agrees that the Employee would not receive the consideration
specified in this Section 1, except for the Employee's execution of this
Agreement and the fulfillment of the promises contained herein.

2.      Employment. Commencing from the date of this Agreement as set forth
above (the "Start Date"), the Employee shall continue his employment as Senior
Vice President, Operations of the Employer under this Agreement through the Term
of this Agreement. The Employee shall render executive, policy, operations and
other management services to the Employer as determined by the Chief Executive
Officer and President and/or Board of Directors of the Employer (the "Board")
and shall perform such other related duties as they may from time to time
reasonably direct.

3.      Employment Term. "Term," as used in this Agreement, shall refer to the
Term of this Agreement as defined in this Section. The Term of the employment
under this Agreement shall commence on the Start Date and shall initially end
three years thereafter, on the day preceding the third anniversary of the Start
Date, unless terminated sooner in accordance with the provisions hereof. The
Term of employment under this Agreement shall, on each anniversary of the Start
Date thereafter (commencing with the third anniversary of the Start Date), be

                                       1
<PAGE>

automatically extended for an additional year unless the Employer or the
Employee gives written notice to the other, at least 180 days prior to such
anniversary date, that he or it does not concur in such extension. If neither
party gives notice of non-concurrence in such extension, the Term will be
automatically extended for an additional year, unless terminated sooner in
accordance with the provisions hereof.

4.       Compensation.

        (A) Salary. The Employer agrees to pay the Employee during the Term of
this Agreement an annual base salary equal to TWO HUNDRED AND TWENTY FIVE
THOUSAND U.S. DOLLARS AND ZERO CENTS ($225,000) with the salary to be reviewed
no less than annually during the Term of this Agreement by the Board of
Directors or Compensation Committee of the Employer. 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 in accordance with the Employer's
payroll system, as determined by the Employer, but not less frequently than
monthly. All payments and benefits in this Agreement shall be subject to all
applicable federal, state and local withholding, payroll and other taxes.

        (B) Equity or Securities Compensation. Subject to the terms and
conditions of the Employer's 2003 Stock Option and Incentive Plan (the "Plan"),
the Employee shall be granted, on the Effective Date, options to purchase fifty
thousand (50,000) shares of common stock of the Employer at a price per share
equal to the fair market value of the shares on the Effective Date, such options
to be immediately exercisable on June 30, 2005. In addition, subject to the
terms and conditions of the Employer's 2003 Stock Option and Incentive Plan (the
"Plan"), and subject to the approval of the Committee (as that term is herein
defined) the Employee shall be granted, on the Effective Date, options to
purchase fifty thousand (50,000) shares of common stock of the Employer at a
price per share equal to the fair market value of the shares on the Effective
Date, such options to be exercisable as follows:

                  16,667 options exercisable on June 30, 2006;

                  16,667 options exercisable on June 30, 2007; and

                  16,666 options exercisable on June 30, 2008.

        In addition to the foregoing consideration, and subject to the
eligibility requirements that may be applicable, the Employee may be entitled to
participate during the Term in any plan or arrangement of the Employer relating
to a 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, at its sole and unfettered
discretion, adopt or make available for the benefit of the Employee.

        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 4, except as provided in Section 4 (A) herein.

                                       2
<PAGE>

5.      Discretionary Bonuses. During the Term of this Agreement, the Employee
may be entitled to receive an annual cash bonus of up to 40% of the Employee's
then annual base salary, based on the Employee's contribution to the
accomplishment of key annual corporate objectives mutually determined by the
Employee and the Employer. The determination of whether to pay a discretionary
bonus, and the amount of the bonus, if any, shall be made by the Employer in its
sole and absolute discretion. During the Term of this Agreement, the Employee
also may be entitled to participate on the same terms and conditions as other
similarly situated eligible executive employees of the Employer in any other
incentive compensation and bonus programs authorized and declared by the Board
of Directors or Compensation Committee of the Employer for executive employees.
The determination of whether the Employee is eligible to participate in any such
incentive compensation and bonus programs, and the amount of incentive
compensation and bonus paid, if any, shall be made solely by the Employer. No
other compensation provided for in this Agreement shall be deemed a substitute
for the Employee's right to participate in such incentive compensation or bonus
programs when and as declared.

6.      Participation in Retirement and Employee Benefit Plans; Fringe Benefits.

        Subject to the eligibility requirements that may be applicable, the
Employee may be entitled to participate during the Term in any plan or
arrangement of the Employer relating to 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 similarly situated executive employees
generally.

        The Employer fully reserves its rights to change, modify or discontinue
any of its stock purchase, retirement, employee benefit or other fringe benefit
plans during the Term of this Agreement in its sole and absolute discretion, and
in accordance with applicable law.

7.      Standards. The Employee shall perform his duties and responsibilities
under this Agreement in accordance with such reasonable standards as are
established from time to time by the Chief Executive Officer and President
and/or the Board of Directors of the Employer, in their respective sole and
absolute discretions.

8.      Voluntary Absences; Vacations. The Employee shall be entitled to an
annual paid vacation during the Term of this Agreement in accordance with the
Employer's policy of executives of four (4) 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.

9.      Termination of Employment.

        The Employee's employment with the Employer may terminate either by
either:

            (a)     termination by the Employer either (i) for Cause (as defined
                    in Section 9(a)(iii) below) or (ii) without Cause;

                                       3
<PAGE>

              (b)     termination by the Employee either for (i) Good Reason (as
                      defined in Section 9(b) below or (ii) Not Good Reason (as
                      defined in Section 9(b); or

              (c)     in the event of death or disability of the Employee.

        (a)  Termination by the Employer.

        (i) The Employer may terminate the Employee's employment at any time,
but any termination by the Employer other than termination for Cause (as defined
in Section 9(a)(iii) below) shall not prejudice the Employee's right to receive
compensation and other benefits under this Agreement, except as stated otherwise
in this Agreement. In the event of a termination for Cause, the Employee shall
have no right to receive payment, compensation or other benefits, including
payment of legal fees and expenses incurred, for any period after termination
for Cause except as otherwise required by law. Where the Employee's employment,
is terminated 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. Where the Employee's
employment is terminated for Cause, the Employer shall have no obligation to
continue to be subject to any independent obligations to the Employee under any
employee benefit plan for which the Employee is then a participant, except as
otherwise required by law.

        (ii) In the event that the Employee's employment ceases by reason of the
Employer's termination of the Employee's employment during the Term other than
for Cause, the Employer shall be obligated in lieu and replacement of the
Employee's entitlement to any compensation and other benefits under this
Agreement pursuant to Section 9(a)(i), to make severance payments to the
Employee in an amount equal to the Employee's then current annual base salary
multiplied by a fraction, the denominator of which shall be 12 and the numerator
of which shall be the number of months remaining in the Term (collectively, the
"Severance Payments"). Notwithstanding the foregoing, if the Employee's
employment ceases by reason of the Employer's termination of the Employee's
employment other than for Cause, the amount paid in Severance Payments to the
Employee under this Section shall not be less than the Employee's annual base
salary for a period of one and one-half (1 1/2) years and shall not exceed the
Employee's then annual base salary for a period of two (2) years. The amount
paid in Severance Payments to the Employee under this Section shall be paid
after termination of employment in equal monthly installments according to the
Employer's normal payroll practices then in effect. However, if either party
provides the other party with written notice of the party's non-concurrence in
the automatic extension of the Term, as set forth in Section 3 of this
Agreement, notwithstanding the foregoing, the Employer shall make Severance
Payments under this Section for a period of one (1) year. However, if the
Employer's termination of the Employee's employment without Cause occurs in
connection with, or within one and one-half (1 1/2) years after, a "Change in
Control" as defined in Section 12(b) hereof, the amount payable to the Employee
shall be determined exclusively under Section 12(a) as limited by Section 12(c)
hereof, and the Employer shall not be required to make the payments set forth in
this Section. The Severance Payments under this Section 9(a)(ii) shall not be
reduced by any compensation

                                       4
<PAGE>

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 6 hereof continued for the remainder of the
Term when the Agreement is terminated, except as otherwise required by law or
provided in the related retirement or other employee benefit plans or
agreements. Notwithstanding the foregoing, the Employer shall have no obligation
to make any contributions to any retirement plan applicable to the Employee
after the date the Employee ceases to be employed by the Employer except as may
be required by such applicable plan. Notwithstanding anything stated herein to
the contrary, and for purposes of clarity, should the Employer terminate the
Employment of the Employee for Cause, the Employee shall not be entitled to
receive Severance Payments. In the event of a retirement plan, the Employee
shall be entitled to contributions made by the Employer to the retirement plan
on the Employee's behalf prior to the date of the Employee's termination, which
have vested and for which the Employee is otherwise eligible in accordance with
the written terms of the official plan documents governing any applicable
retirement plan. The Employer shall have no obligation to make the Severance
Payments set forth in this Section unless the Employee fully complies with his
obligations under this Agreement, including, but not limited to, his obligations
under Sections 10 and 11 of this Agreement.

        (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 the Board of Directors of the Employer.
"Cause" shall mean any 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,

                  (E)      continued failure of the Employee to substantially
                           and satisfactorily perform his duties or obligations
                           under this Agreement following twenty (20) 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)      Termination by the Employee.

        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 for Good Reason (as described in Section 12(a) hereof) (i)
in connection with, or within one and one-half (1 1/2) years after, a Change in
Control; or (ii) approved by the Board of Directors of the Employer. For
purposes of this Agreement, the term "Not Good Reason" shall mean such
termination by the Employee of his employment for reasons other than for Good
Reason. In the

                                       5
<PAGE>

event that the Employee terminates his employment for Not Good Reason, the
Employee shall have no right to receive compensation or other benefits,
including payment of legal fees and expenses incurred, for any period after such
termination except as otherwise required by law. . Where the Employee terminates
his employment for Good Reason, 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. Where the Employee terminates his employment
for Not Good Reason, the Employer shall have no obligation to continue to be
subject to any independent obligations to the Employee under any employee
benefit plan for which the Employee is then a participant, except as otherwise
required by law.

        Notwithstanding anything stated herein to the contrary, and for
purposes of clarity, should the Employee terminate his Employment for Not Good
Reason, the Employee shall not be entitled to receive Severance Payments as
described in Section 9(a)(ii).

       (c)      Death and Disability.

        The Employee's employment under this Agreement may also cease prior to
the end of the Term of this Agreement in the event of the Employee's death or
upon the Employee becoming "Totally Disabled." For purposes of this Agreement,
"Totally Disabled" shall mean such situation where the Employee, because of
injury (the "Injury") or sickness (the "Sickness"), the Employee is unable to
perform the material duties of her regular occupation for a specified period;
and, solely due to injury or sickness, she is unable to earn more than the
percentage of their Indexed Covered Earnings (as that term is defined in the
Employer's Long-Term Disability Summary Plan Description) from working in her
regular occupation. Thereafter, "Totally Disabled" shall mean such situation
where the Employee is disabled in that her injury or sickness makes her unable
to perform the material duties of any occupation for which she may reasonably
become qualified based on education, training or experience; and solely due to
such Injury or Sickness, she is unable to earn more than the percentage of their
Indexed Covered Earnings (as that term is defined in the Employer's Long-Term
Disability Summary Plan Description). For purposes of this Agreement the
Employee shall be "Totally Disabled" as of the date he becomes entitled to
receive disability benefits under the Employer's long term disability plan. In
the event that the Employee's employment is terminated by his death or upon
becoming "Totally Disabled," the Employee or the Employee's heirs or estate (as
applicable), shall be entitled to receive (i) any accrued but unpaid salary for
services rendered to the date of termination as determined pursuant to Section
4, (ii) any vacation accrued under the Employer's policy to the date of
termination, and (iii) any accrued but unpaid expenses pursuant to Section 14 of
this Agreement. The benefits to which the Employee may be entitled upon
termination pursuant to the plans and arrangements referred to in Section 6 of
this Agreement shall be determined and paid in accordance with the terms of such
plans and arrangements.

        (d) The Employer shall have no obligation to make the payments set forth
herein if the Employee is in material breach of the Employee's obligations under
this Agreement. The Employee shall be obligated to execute a general release of
claims in favor of the Employer, its current and former parents, subsidiaries,
subdivisions, divisions, shareholders, Board of Directors, or affiliated
entities or persons, and the current and former directors, officers, employees
and agents of the Employer, in a form acceptable to the Employer (the
"Release"), as a condition to receiving the Severance Payments described above.

                                       6
<PAGE>

10.      Confidential Information and Non-Competition.

        (a) "Confidential Information" shall mean trade secrets or confidential
information relating to the Employer, its customers, affiliates and their
respective businesses, including, but not limited to, the identity of the
Employer's customers; the entity of distributors and suppliers of the Employer;
the identity of representatives responsible for entering into contracts with the
Employer; specific customer, distributor and supplier needs and requirements;
the details of contracts and proposals between the Employer and its customers,
distributors and suppliers; selling and marketing strategies, prices, costs, and
profit margins; the names, addresses and other contact information of purchasing
agents, vendors or other entities; purchasing techniques, methods, procedures
and processes, manufacturing and production techniques, methods, procedures and
processes; other techniques, methodologies and processes used by the Employer in
the conduct of its business; techniques, methods, procedures, know-how,
show-how, prototypes and technical specifications; computer data, software,
software codes, computer models, research projects, data processing and other
programs; production and manufacturing equipment and operating practices;
information with respect to products and product formulae, designs, plans for
future business, new business, products or other developments; new or innovative
ideas, customer proposals, marketing plans and ideas, future developments or
strategies; information pertaining to research and development, acquisitions or
divestitures, marketing and sales, cost cutting, revenue generation, or other
matters concerning the Employer's planning and strategy; and other nonpublic
financial and other information of the Employer disclosed to or known by the
Employee as a consequence of or through the Employee's employment (or other
service relationship) with the Employer (including information conceived,
originated, discovered or developed by the Employee), which information is not
generally known in the relevant trade or industry or public knowledge. The
Employee acknowledges and agrees that the Confidential Information is not
generally known or available to the public, but has been developed, compiled or
acquired by the Employer at its great effort and expense. Confidential
Information can be in any form: oral, written or machine readable, including
electronic files.

        (b) The Employee acknowledges and agrees that the Employer is engaged in
a highly competitive business and that its competitive position depends upon its
ability to maintain the confidentiality of the Confidential Information and
Trade Secrets which were developed, compiled and acquired by the Employer at its
great effort and expense. The Employee further acknowledges and agrees that any
disclosure, divulging, revelation or use of any of the Confidential Information,
other than in connection with the Employer's business or as specifically
authorized by the Employer, will be highly detrimental to the Employer, and that
serious loss of business and goodwill and pecuniary damage may result therefrom.
During the Employee's employment with the Employer and thereafter, the Employee
shall hold for the benefit of the Employer, and not for the Employee's own
benefit or disclosure to third parties, all Confidential Information relating to
the Employer and its business, including all Confidential Information of
customers of the Employer (i) obtained by the Employee during the Employee's
employment with the Employer and (ii) not otherwise public knowledge or
generally known in the trade or industry. The Employee shall not, without the
prior written consent of the Employer, unless compelled pursuant to the order of
a court or other governmental or legal body having jurisdiction over such
matter, communicate or divulge any such Confidential Information to anyone other
than the Employer and those designated by it. In the event the Employee is

                                       7
<PAGE>

compelled by order of a court or other governmental or legal body to communicate
or divulge any such Confidential Information to anyone other than the Employer
and those designated by it, the Employee shall promptly notify the Employer of
any such order and the Employee shall cooperate fully with the Employer in
protecting such information to the extent possible under applicable law and will
only disclose that portion of the Confidential Information necessary to satisfy
any such order.

        (c) Upon termination of the Employee's employment with the Company, or
at any time the Company requests, all equipment, property, documents, files,
records, notes, memoranda, designs, reports, price lists, cost sheets,
prototypes, blue prints, technical specifications, estimates, databases, home
office equipment, automobiles, computer equipment, computer files, computer
programs, plans, other documents, and all other property and Confidential
Information of the Employer (including all copies in all forms in the Employee's
possession or control), whether prepared by the Employee solely or jointly with
others, shall be left with or promptly returned to the Employer and shall at all
times be the property of the Employer.

        (d) The Employee acknowledges and agrees that the Employer is engaged in
a highly competitive business, and by virtue of the Employee's position and
responsibilities with the Employer, and the Employee's access to Confidential
Information, the Employee's engaging in any business which is directly or
indirectly competitive with the Employer will cause it great and irreparable
harm. During the period of employment as an officer and/or employee of the
Employer, the Employee will devote his available business time and best efforts
to promoting and advancing the business of the Employer. During the Term of this
Agreement and for the duration of the Severance Payments made to the Employee in
accordance with Section 9, or in the event of a Change in Control in accordance
with Section 12 for a period of two (2) years, the Employee agrees that he or
she will not, in any jurisdiction around the world in which the Employer
conducts business, whether alone or as a partner, officer, director, consultant,
agent, employee or stockholder of any company or other commercial enterprise,
engage in any business or other commercial activity which is or may be
competitive with the products and services being designed, conceived, marketed,
distributed or developed by the Employer at the time of termination of such
employment, unless written approval is obtained from the Company's Board of
Directors. Notwithstanding the foregoing, if either party provides the other
party with written notice of the non-concurrence in the automatic extension of
the Term, as set forth in Section 3 of this Agreement, the duration of the
restriction in this Section 12(d) shall be for the duration of the Term and for
a period of one (1) year from the date of expiration of the Term. For purposes
of this Section, competitive products and services shall be defined to mean
non-photographic imaging, computer-to-plate, direct-to-press, thermal laser or
chemistry-free printing plate technology products and services, or any other
products and services substantially similar to the products and services
designed, conceived, marketed, distributed or developed by the Employer at the
time of termination of the Employee's employment. The Employee acknowledges,
understands and agrees that accepting such competitive employment would cause
him to inevitably use, misappropriate and disclose the Employer's Confidential
Information which the Employee came to learn during his employment with the
Employer.

        (e) The Employee acknowledges and agrees that during the course and
solely as a result of the Employee's employment with the Employer, the Employee
has and will become

                                       8
<PAGE>

aware of some, most or all of the customers of the Employer, their names and
addresses, their representatives responsible for engaging the services of the
Employer and their specific needs and requirements. The Employee further
acknowledges and agrees that the loss of such customers will cause the Employer
serious loss of business and will be detrimental to the Employer's goodwill and
will cause great and irreparable harm. During the Term of this Agreement and for
a period of two (2) years after termination of employment (for any reason
whatsoever), the Employee will not directly or indirectly either for himself or
for any other person or commercial enterprise (1) divert or take away, or
attempt to divert or take away, any of the Employer's customers or business in
existence at the time of termination of such employment that the Employee had
contact with, for whom the Employee performed services during his employment
with the Employer and/or that were made known to the Employee by the Employer
during his employment with the Employer; and/or (2) solicit or attempt to
solicit, ask for, accept, or seek to do business with, for the purpose or effect
of engaging in competition with the Employer, any of the Employer's customers or
business in existence at the time of termination of such employment with whom
the Employee had contact, for whom the Employee performed services during his
employment with the Employer and/or that were made known to the Employee by the
Employer during his employment.

        (f) The Employee acknowledges and agrees that during the course and
solely as a result of the Employee's employment with the Employer, the Employee
has and will become aware of some, most or all of the employees of the Employer,
and has and will acquire knowledge of their qualifications, skills, abilities,
salaries, commissions, benefits and other matters with respect to such employees
not generally known to the public. The Employee further acknowledges and agrees
that any solicitation, luring away or hiring of such employees of the Employer
will cause serious loss of business and will be detrimental to the Employer's
goodwill and will cause great and irreparable harm. During the Term of this
Agreement and for a period of two (2) years after termination of employment (for
any reason whatsoever), the Employee will not directly or indirectly either for
himself or for any other person or commercial enterprise (1) solicit or induce
any employee to terminate his or her employment relationship with the Employer,
and/or (2) recruit, attempt to recruit, hire, or attempt to hire any employee of
the Employer other than on behalf of the Employer.

        (g) The Employee hereby acknowledges and agrees that the type and
periods of restrictions imposed in Sections 10(a) through 10(f) of this
Agreement are fair and reasonable and are reasonably required for the protection
of the Employer's Confidential Information and the goodwill associated with the
business of the Employer. Further, the Employee acknowledges and agrees that the
restrictions imposed in Sections 10(a) through 10(f) will not prevent him from
obtaining suitable employment after his employment with the Employer ceases or
from earning a livelihood. The Employee hereby acknowledges, agrees and
understands that he would not be entitled to the Severance Payments (as
described in Section 9(a)(ii)) or the Change in Control payment (as described in
Section 12(a)), except for his agreement to fulfill his obligations under
Sections 10(a) through 10(f) and Section 11 of this Agreement.

11. Assignment of Inventions. The Employee expressly understands and agrees that
any and all right or interest he may obtain in any designs, trade secrets,
technical specifications and technical data, know-how and show-how, customer and
vendor lists, marketing plans, pricing policies, inventions, concepts, ideas,
works of authorship, documentation, formulae, data,

                                       9
<PAGE>

designs, techniques, discoveries, improvements or intellectual property rights
of any kind or any interest therein (whether or not patentable or registrable
under copyright, trademark or similar statutes (including, but not limited to,
the Semiconductor Chip Protection Act) or subject to analogous protection) that
he, whether alone or jointly with others, authors, conceives, devises, develops,
reduces to practice, or otherwise obtains during the Employee's employment with
the Employer, and that (i) relate to or arise out of his employment with the
Employer; (ii) relate to the Employer's present or planned business or any of
the products or services being designed, conceived, developed, marketed,
manufactured or distributed by the Employer or that may be used in relation
therewith; (iii) result from the use of premises or personal property (whether
tangible or intangible) owned, leased or contracted for or by the Employer; (iv)
result from activities engaged in during the Employer's time; and/or (v) result
from use of Confidential Information of the Employer whether such use occurred
prior to or during the Employee's employment with the Employer (the
"Inventions"), are and shall immediately become the sole and absolute property
of the Employer and its assigns, as works made for hire or otherwise.

        The Employee hereby assigns to the Employer the sole and exclusive right
to such Inventions. The Employee agrees that he will promptly disclose to the
Employer any and all such Inventions, and that, upon request of the Employer,
the Employee will execute and deliver any and all documents or instruments and
take any other action which the Employer shall deem necessary to assign to and
vest completely in the Employer, to perfect trademark, copyright and patent
protection with respect to, or to otherwise protect the Employer's trade secrets
and proprietary interest in such Inventions. The Employer agrees to pay any and
all copyright, trademark and patent fees and expenses or other costs incurred by
the Employee for any assistance rendered to the Employer pursuant to this
Section.

        In the event the Employer is unable, after reasonable effort, to secure
the Employee's signature on any letters, patent, copyright or other analogous
protection relating to an Invention, the Employee hereby irrevocably designates
and appoints the Employer and any of its officers as his agent and
attorney-in-fact, to act for and on his behalf and stead to execute and file any
such application or applications and to do all other lawfully permitted acts to
further the prosecution and issuance of letters patent, copyright or other
analogous protection thereon with the same legal force and effect as if executed
by the Employee. The obligations in this Section shall continue beyond the
termination of the Employee's employment.

12.      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 one and one-half (1 1/2) years
after such Change in Control, then the Employee shall be entitled to receive a
lump sum cash payment as provided in Section 12(a)(ii) below. The Employer shall
have no obligation to make the payment set forth in this Section unless the
Employee fully complies with his obligations under this Agreement, including,
but not limited to, his obligations under Sections 10 and 11 of this Agreement.
The Employer shall have no obligation to make the payment set forth in this
Section in the event of the Employee's death or upon Employee becoming "Totally
Disabled" (as described in Section 9(a)(c)) on the date of a Change in Control
or within one and one-half (1 1/2) years after such Change in Control. In such
event, the

                                       10
<PAGE>

payments and benefits, if any, to which the Employee may be entitled shall be
determined in accordance with Section 9(c) of this Agreement. (ii) Subject to
Section 12(c) hereof, the lump sum cash payment (the "Payment") shall be in an
amount equal to three (3) times the Employee's average annual base salary paid
to the Employee by the Employer over the five (5) most recent years ending prior
to such Change in Control of the Employer (or such portion of such period during
which the Employee was a full-time employee of the Employer), less one dollar.
In addition, in the event of a Change in Control, all existing options that have
been granted to the Employee shall be subject to immediate vesting.

        (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
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 (subject to
Employer's right to provide equivalent benefits in cash or otherwise in kind),
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 thirty-five (35) miles from a major city in the United States as defined by
the twenty-six (26) Standard Metropolitan Statistical Areas; or

             (F) any material breach by the Employer of this Agreement.

        (iv) Payment under this Section 12(a) shall be in lieu of any amount
owed to the Employee as severance payments for termination without Cause under
Section 9(a) hereof. However, payment under this Section 12(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. The
Employer shall have no obligation to make any contributions to any retirement
plan that may be applicable to the Employee after a Change in Control of the
Employer. The Employee shall be entitled to contributions made by the Employer
to any retirement plan that may be applicable to the Employee on the Employee's
behalf prior to a Change in Control of the Employer, which have vested and for
which the Employee is

                                       11
<PAGE>

otherwise eligible in accordance with the written terms of the official plan
documents governing any applicable retirement plan.

        (b) A "Change in Control of the Employer," for purposes of this
Agreement, shall be deemed to have taken place if 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 this 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 12(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.

        (d) The Employer shall have no obligation to make the payments set forth
herein if the Employee is in material breach of the Employee's obligations under
this Agreement. The Employee shall be obligated to execute a general release of
claims in favor of the Employer, its current and former parents, subsidiaries,
subdivisions, divisions, shareholders, Board of Directors, or affiliated
entities or persons, and the current and former directors, officers, employees
and agents of the Employer, in a form acceptable to the Employer (the
"Release"), as a condition to receiving the payments set forth in this Section.

13. Remedies. The Employee acknowledges and agrees that compliance with the
covenants set forth in this Agreement is necessary to protect the business and
goodwill of the Employer and that any breach of Sections 10 through 11 of this
Agreement will result in irreparable and continuing harm to the Employer, for
which money damages may not provide adequate relief. Accordingly, in the event
of any breach or anticipatory breach of Sections 10 and 11 by the Employee, the
Employer and the Employee agree that the Employer shall be entitled to the
following particular forms of relief as a result of such breach, in addition to
any remedies

                                       12
<PAGE>

otherwise available to it at law or equity: (a) injunctions, whether temporary,
preliminary or permanent, enjoining or restraining such breach or anticipatory
breach, and the Employee hereby consents to the issuance thereof forthwith and
without bond by any court of competent jurisdiction; and (b) recovery of all
reasonable sums and costs, including attorneys' fees, incurred by the Employer
to enforce the provisions of Sections 10 and 11.

14. Expenses; Automobile Allowance.

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

   (b) During the Term of this Agreement, the Employer shall buy or lease a
full size luxury vehicle of the Employer's choosing for the Employee's exclusive
use and/or, at the Employee's option, provide the Employee with a monthly
automobile allowance in an amount sufficient to pay the Employee's costs for the
purchase or lease of such a vehicle, and the Employer shall reimburse the
Employee (upon submission by him of reasonably itemized accounts thereof) for
all maintenance, repairs, insurance, gasoline, tolls, parking and other
reasonable upkeep and related expenses on such vehicle.

15. Legal Expenses. The Employer shall indemnify and hold harmless the Employee
from and against any and all reasonable costs and liabilities, including without
limitation reasonable attorneys' fees, arising out of or in connection with
becoming, 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.

16. 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.

17. 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.

18. Entire Agreement. This Agreement constitutes the entire agreement between
the parties with respect to the subject matter contained herein, and supersedes
all prior employment agreements and understandings, whether written or oral,
except for the Employer's Code of Business Conduct and Ethics, Corporate
Communications Disclosure Procedures ,Insider

                                       13
<PAGE>

Trading Policy Statement, and 2003 Stock Option and Incentive Plan, which shall
remain in full force and effect, each of which are incorporated herein by
reference.

19. Amendments or Additions. There are currently no oral representations,
agreements or understandings which affect the enforceability of this Agreement,
and no alteration or variation of the terms of this Agreement can be valid
unless made in writing and signed by both parties, wherein specific reference is
made to this Agreement.

20. 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.

21. Severability. Each promise and provision contained in this Agreement shall
be enforceable independently of every other promise and provision in this
Agreement. If any provision contained in this Agreement is determined to be
partially or totally invalid or unenforceable in any respect, such determination
shall not affect any other provision of this Agreement, but this Agreement shall
be considered divisible as to such provision which shall become null and void,
leaving the remainder of this Agreement in full force and effect.

22. 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,
without giving effect to the conflicts of laws principles thereof.

23. Arbitration of Disputes and Jury Waivers.

        (a) The parties hereto agree to arbitrate any dispute, claim, or
controversy ("claim") against each other arising out of the cessation of the
Employee's employment, any claim of unlawful discrimination or harassment that
might or did arise during or as a result of the Employee's employment which
could have been brought before an appropriate government administrative agency
or in an appropriate court, including but not limited to claims of age
discrimination under the Age Discrimination in Employment Act of 1967, as
amended, as well as any claim or controversy arising under this Agreement. The
Arbitration shall be arbitrated by one arbitrator in accordance with the
National Rules for the Resolution of Employment Disputes of the American
Arbitration Association. The decision or award of the arbitration shall be final
and binding upon the parties. Any arbitral award may be entered as a judgment or
order in any court of competent jurisdiction. Any claims under Sections 10 and
11 of this Agreement shall not be subject to arbitration, but shall be subject
to the remedies set forth in Section 13 hereof.

        (b) If for any reason this arbitration provision is declared
unenforceable, the Employee agrees to waive any right he may have to a jury
trial with respect to any dispute or claim against the Employer relating to this
Agreement, his employment, termination or any terms and conditions of
employment, including, but not limited to claims of age discrimination under the
Age Discrimination in Employment Act of 1967, as amended.

        (c) The Employee has been advised of his right to consult with counsel
regarding this Agreement. The Employee's acceptance of this Agreement can be
revoked any time within seven (7) days of signing this Agreement, but such
revocation must be signed and in

                                       14
<PAGE>

writing. The Employee has been afforded at least twenty-one (21) days to
consider this Agreement.

                           [Signature page to follow.]

                                       15
<PAGE>

                  IN WITNESS WHEREOF, the parties have knowingly and voluntarily
executed this Agreement this 2nd day of February, 2005.

                                      PRESSTEK, INC. (the "Employer")

                                      By: /s/ Edward J. Marino
                                          --------------------------
                                          EDWARD J. MARINO
                                          Chief Executive Officer and President

                                          /s/ G. Michael McCarthy
                                          --------------------------
                                          G. MICHAEL MCCARTHY
                                          (the "Employee")

                                       16

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