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                                                                    EXHIBIT 10.4

                                 NOVACEPT, INC.

                            INDEMNIFICATION AGREEMENT

      This Indemnification Agreement ("AGREEMENT") is made as of this ___ day of
___________, 2004, by and between Novacept, Inc., a Delaware corporation (the
"COMPANY"), and _____________________ ("INDEMNITEE").

      WHEREAS, the Company and Indemnitee recognize the significant cost of
directors' and officers' liability insurance and the general reductions in the
coverage of such insurance;

      WHEREAS, the Company and Indemnitee further recognize the substantial
increase in corporate litigation in general, subjecting officers and directors
to expensive litigation risks at the same time as the coverage of liability
insurance has been severely limited; and

      WHEREAS, the Company desires to attract and retain the services of highly
qualified individuals, such as Indemnitee, to serve as officers and directors of
the Company and to indemnify its officers and directors so as to provide them
with the maximum protection permitted by law.

      NOW, THEREFORE, in consideration for Indemnitee's services as an officer
or director of the Company, the Company and Indemnitee hereby agree as follows:

      1. INDEMNIFICATION.

            (a) Third Party Proceedings. The Company shall indemnify Indemnitee
if Indemnitee is or was a party or is threatened to be made a party to any
threatened, pending or completed action, suit, proceeding or any alternative
dispute resolution mechanism, whether civil, criminal, administrative or
investigative (other than an action by or in the right of the Company) by reason
of the fact that Indemnitee is or was a director, officer, employee or agent of
the Company, or any subsidiary of the Company, or by reason of the fact that
Indemnitee is or was serving at the request of the Company as a director,
officer, employee or agent of another corporation, partnership, joint venture,
trust or other enterprise, against expenses (including attorneys' fees),
judgments, fines and amounts paid in settlement (if such settlement is approved
in advance by the Company, which approval shall not be unreasonably withheld)
actually and reasonably incurred by Indemnitee in connection with such action,
suit or proceeding if Indemnitee acted in good faith and in a manner Indemnitee
reasonably believed to be in or not opposed to the best interests of the
Company, and, with respect to any criminal action or proceeding, had no
reasonable cause to believe Indemnitee's conduct was unlawful. The termination
of any action, suit or proceeding by judgment, order, settlement, conviction, or
upon a plea of nolo contendere or its equivalent, shall not, of itself, create a
presumption that Indemnitee did not act in good faith and in a manner which
Indemnitee reasonably believed to be in or not opposed to the best interests of
the Company, and, with respect to any criminal action or proceeding, had
reasonable cause to believe that Indemnitee's conduct was unlawful.
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            (b) Proceedings By or in the Right of the Company. The Company shall
indemnify Indemnitee if Indemnitee was or is a party or is threatened to be made
a party to any threatened, pending or completed action or suit by or in the
right of the Company or any subsidiary of the Company to procure a judgment in
its favor by reason of the fact that Indemnitee is or was a director, officer,
employee or agent of the Company, or any subsidiary of the Company, or by reason
of the fact that Indemnitee is or was serving at the request of the Company as a
director, officer, employee or agent of another corporation, partnership, joint
venture, trust or other enterprise, against expenses (including attorneys' fees)
and, to the fullest extent permitted by law, amounts paid in settlement actually
and reasonably incurred by Indemnitee in connection with the defense or
settlement of such action or suit if Indemnitee acted in good faith and in a
manner Indemnitee reasonably believed to be in or not opposed to the best
interests of the Company, except that no indemnification shall be made in
respect of any claim, issue or matter as to which Indemnitee shall have been
adjudged to be liable to the Company unless and only to the extent that the
Court of Chancery of the State of Delaware or the court in which such action or
suit was brought shall determine upon application that, despite the adjudication
of liability but in view of all the circumstances of the case, Indemnitee is
fairly and reasonably entitled to indemnity for such expenses which the Court of
Chancery of the State of Delaware or such other court shall deem proper.

            (c) Mandatory Payment of Expenses. To the extent that Indemnitee has
been successful on the merits or otherwise in defense of any action, suit or
proceeding referred to in Subsections (a) and (b) of this Section 1, or in
defense of any claim, issue or matter therein, Indemnitee shall be indemnified
against expenses (including attorneys' fees) actually and reasonably incurred by
Indemnitee in connection therewith.

      2. EXPENSES; INDEMNIFICATION PROCEDURE.

            (a) Advancement of Expenses. The Company shall advance all expenses
incurred by Indemnitee in connection with the investigation, defense, settlement
or appeal of any civil or criminal action, suit or proceeding referenced in
Section 1(a) or (b) hereof (but not amounts actually paid in settlement of any
such action, suit or proceeding). Indemnitee hereby undertakes to repay such
amounts advanced only if, and to the extent that, it shall ultimately be
determined that Indemnitee is not entitled to be indemnified by the Company as
authorized hereby. The advances to be made hereunder shall be paid by the
Company to Indemnitee within thirty (30) days following delivery of a written
request therefor by Indemnitee to the Company.

            (b) Notice/Cooperation by Indemnitee. Indemnitee shall, as a
condition precedent to his right to be indemnified under this Agreement, give
the Company notice in writing as soon as practicable of any claim made against
Indemnitee for which indemnification will or could be sought under this
Agreement. Notice to the Company shall be directed to the President of the
Company at the address shown on the signature page of this Agreement (or such
other address as the Company shall designate in writing to Indemnitee). Notice
shall be deemed received three business days after the date postmarked if sent
by domestic certified or registered mail, properly addressed, five business days
if sent by airmail to a country outside of North America; otherwise notice shall
be deemed

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received when such notice shall actually be received by the Company. In
addition, Indemnitee shall give the Company such information and cooperation as
it may reasonably require and as shall be within Indemnitee's power.

            (c) Procedure. Any indemnification and advances provided for in
Section 1 and this Section 2 shall be made no later than thirty (30) days after
receipt of the written request of Indemnitee. If a claim under this Agreement,
under any statute, or under any provision of the Company's Certificate of
Incorporation or Bylaws providing for indemnification, is not paid in full by
the Company within thirty (30) days after a written request for payment thereof
has first been received by the Company, Indemnitee may, but need not, at any
time thereafter bring an action against the Company to recover the unpaid amount
of the claim and, subject to Section 12 of this Agreement, Indemnitee shall also
be entitled to be paid for the expenses (including attorneys' fees) of bringing
such action. It shall be a defense to any such action (other than an action
brought to enforce a claim for expenses incurred in connection with any action,
suit or proceeding in advance of its final disposition) that Indemnitee has not
met the standards of conduct which make it permissible under applicable law for
the Company to indemnify Indemnitee for the amount claimed. However, Indemnitee
shall be entitled to receive interim payments of expenses pursuant to Subsection
2(a) unless and until such defense may be finally adjudicated by court order or
judgment from which no further right of appeal exists. It is the parties'
intention that if the Company contests Indemnitee's right to indemnification,
the question of Indemnitee's right to indemnification shall be for the court to
decide, and neither the failure of the Company (including its Board of
Directors, any committee or subgroup of the Board of Directors, independent
legal counsel, or its stockholders) to have made a determination that
indemnification of Indemnitee is proper in the circumstances because Indemnitee
has met the applicable standard of conduct required by applicable law, nor an
actual determination by the Company (including it Board of Directors, any
committee or subgroup of the Board of Directors, independent legal counsel, or
its stockholders) that Indemnitee has not met such applicable standard of
conduct, shall create a presumption that Indemnitee has or has not met the
applicable standard of conduct.

            (d) Notice to Insurers. If, at the time of the receipt of a notice
of a claim pursuant to Section 2(b) hereof, the Company has director and officer
liability insurance in effect, the Company shall give prompt notice of the
commencement of such proceeding to the insurers in accordance with the
procedures set forth in the respective policies. The Company shall thereafter
take all necessary or desirable action to cause such insurers to pay, on behalf
of the Indemnitee, all amounts payable as a result of such proceeding in
accordance with the terms of such policies.

            (e) Selection of Counsel. In the event the Company shall be
obligated under Section 2(a) hereof to pay the expenses of any proceeding
against Indemnitee, the Company, if appropriate, shall be entitled to assume the
defense of such proceeding, with counsel approved by Indemnitee, upon the
delivery to Indemnitee of written notice of its election to do so. After
delivery of such notice, approval of such counsel by Indemnitee and the
retention of such counsel by the Company, the Company will not be liable to
Indemnitee under this Agreement for any fees of counsel subsequently incurred by
Indemnitee with respect to the same proceeding, provided that (i) Indemnitee
shall have the right to employ his counsel in any such proceeding at
Indemnitee's expense; and (ii) if (A) the

                                      -3-
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employment of counsel by Indemnitee has been previously authorized by the
Company, (B) Indemnitee shall have reasonably concluded that there may be a
conflict of interest between the Company and Indemnitee in the conduct of any
such defense, or (C) the Company shall not, in fact, have employed counsel to
assume the defense of such proceeding, then the fees and expenses of
Indemnitee's counsel shall be at the expense of the Company.

      3. ADDITIONAL INDEMNIFICATION RIGHTS; NONEXCLUSIVITY.

            (a) Scope. Notwithstanding any other provision of this Agreement,
the Company hereby agrees to indemnify the Indemnitee to the fullest extent
permitted by law, notwithstanding that such indemnification is not specifically
authorized by the other provisions of this Agreement, the Company's Certificate
of Incorporation, the Company's Bylaws or by statute. In the event of any
change, after the date of this Agreement, in any applicable law, statute, or
rule which expands the right of a Delaware corporation to indemnify a member of
its board of directors or an officer, such changes shall be, ipso facto, within
the purview of Indemnitee's rights and Company's obligations, under this
Agreement. In the event of any change in any applicable law, statute or rule
which narrows the right of a Delaware corporation to indemnify a member of its
board of directors or an officer, such changes, to the extent not otherwise
required by such law, statute or rule to be applied to this Agreement shall have
no effect on this Agreement or the parties' rights and obligations hereunder.

            (b) Nonexclusivity. The indemnification provided by this Agreement
shall not be deemed exclusive of any rights to which Indemnitee may be entitled
under the Company's Certificate of Incorporation, its Bylaws, any agreement, any
vote of stockholders or disinterested Directors, the General Corporation Law of
the State of Delaware, or otherwise, both as to action in Indemnitee's official
capacity and as to action in another capacity while holding such office. The
indemnification provided under this Agreement shall continue as to Indemnitee
for any action taken or not taken while serving in an indemnified capacity even
though he may have ceased to serve in such capacity at the time of any action,
suit or other covered proceeding.

      4. PARTIAL INDEMNIFICATION. If Indemnitee is entitled under any provision
of this Agreement to indemnification by the Company for some or a portion of the
expenses, judgments, fines or penalties actually or reasonably incurred by him
in the investigation, defense, appeal or settlement of any civil or criminal
action, suit or proceeding, but not, however, for the total amount thereof, the
Company shall nevertheless indemnify Indemnitee for the portion of such
expenses, judgments, fines or penalties to which Indemnitee is entitled.

      5. MUTUAL ACKNOWLEDGEMENT. Both the Company and Indemnitee acknowledge
that in certain instances, Federal law or applicable public policy may prohibit
the Company from indemnifying its directors and officers under this Agreement or
otherwise. Indemnitee understands and acknowledges that the Company has
undertaken or may be required in the future to undertake with the Securities and
Exchange Commission to submit the question of indemnification to a court in
certain circumstances for a determination of the Company's right under public
policy to indemnify Indemnitee.

                                      -4-
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      6. OFFICER AND DIRECTOR LIABILITY INSURANCE. The Company may, from time to
time, make a determination whether or not it is practicable for the Company to
obtain and maintain a policy or policies of insurance with insurance companies
providing the officers and directors of the Company with coverage for losses
from wrongful acts, or to ensure the Company's performance of its
indemnification obligations under this Agreement. Among other considerations,
the Company may weigh the costs of obtaining such insurance coverage against the
protection afforded by such coverage. In all policies of director and officer
liability insurance, Indemnitee will be named as an insured in such a manner as
to provide Indemnitee the same rights and benefits as are accorded to the most
favorably insured of the Company's directors, if Indemnitee is a director; or of
the Company's officers, if Indemnitee is not a director of the Company but is an
officer. Notwithstanding the foregoing, the Company shall have no obligation to
obtain or maintain such insurance.

      7. SEVERABILITY. Nothing in this Agreement is intended to require or shall
be construed as requiring the Company to do or fail to do any act in violation
of applicable law. The Company's inability, pursuant to court order, to perform
its obligations under this Agreement shall not constitute a breach of this
Agreement. The provisions of this Agreement shall be severable as provided in
this Section 7. If this Agreement or any portion hereof shall be invalidated on
any ground by any court of competent jurisdiction, then the Company shall
nevertheless indemnify Indemnitee to the full extent permitted by any applicable
portion of this Agreement that shall not have been invalidated, and the balance
of this Agreement not so invalidated shall be enforceable in accordance with its
terms.

      8. EXCEPTIONS. Any other provision herein to the contrary notwithstanding,
the Company shall not be obligated pursuant to the terms of this Agreement:

            (a) Claims Initiated by Indemnitee. To indemnify or advance expenses
to Indemnitee with respect to proceedings or claims initiated or brought
voluntarily by Indemnitee and not by way of defense, except with respect to
proceedings brought to establish or enforce a right to indemnification under
this Agreement or any other statute or law or otherwise as required under
Section 145 of the Delaware General Corporation Law, but such indemnification or
advancement of expenses may be provided by the Company in specific cases if the
Board of Directors has approved the initiation or bringing of such suit; or

            (b) Lack of Good Faith. To indemnify Indemnitee for any expenses
incurred by the Indemnitee with respect to any proceeding instituted by
Indemnitee to enforce or interpret this Agreement, if a court of competent
jurisdiction determines that each of the material assertions made by the
Indemnitee in such proceeding was not made in good faith or was frivolous; or

            (c) Insured Claims. To indemnify Indemnitee for expenses or
liabilities of any type whatsoever (including, but not limited to, judgments,
fines, ERISA excise taxes or penalties, and amounts paid in settlement) which
have been paid directly to Indemnitee by an insurance carrier under a policy of
officers' and directors' liability insurance maintained by the Company.

                                      -5-
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            (d) Claims Under Section 16(b). To indemnify Indemnitee for expenses
and the payment of profits arising from the purchase and sale by Indemnitee of
securities in violation of Section 16(b) of the Securities Exchange Act of 1934,
as amended, or any similar successor statute.

      9. CONSTRUCTION OF CERTAIN PHRASES.

            (a) For purposes of this Agreement, references to the "Company"
shall include, in addition to the resulting corporation, any constituent
corporation (including any constituent of a constituent) absorbed in a
consolidation or merger which, if its separate existence had continued, would
have had power and authority to indemnify its directors, officers, and employees
or agents, so that if Indemnitee is or was a director, officer, employee or
agent of such constituent corporation, or is or was serving at the request of
such constituent corporation as a director, officer, employee or agent of
another corporation, partnership, joint venture, trust or other enterprise,
Indemnitee shall stand in the same position under the provisions of this
Agreement with respect to the resulting or surviving corporation as Indemnitee
would have with respect to such constituent corporation if its separate
existence had continued.

            (b) For purposes of this Agreement, references to "other
enterprises" shall include employee benefit plans; references to "fines" shall
include any excise taxes assessed on Indemnitee with respect to an employee
benefit plan; and references to "serving at the request of the Company" shall
include any service as a director, officer, employee or agent of the Company
which imposes duties on, or involves services by, such director, officer,
employee or agent with respect to an employee benefit plan, its participants, or
beneficiaries; and if Indemnitee acted in good faith and in a manner Indemnitee
reasonably believed to be in the interest of the participants and beneficiaries
of an employee benefit plan, Indemnitee shall be deemed to have acted in a
manner "not opposed to the best interests of the Company" as referred to in this
Agreement.

      10. COUNTERPARTS. This Agreement may be executed in one or more
counterparts, each of which shall constitute an original.

      11. SUCCESSORS AND ASSIGNS. This Agreement shall be binding upon the
Company and its successors and assigns, and shall inure to the benefit of
Indemnitee and Indemnitee's estate, heirs, legal representatives and assigns.

      12. ATTORNEYS' FEES. In the event that any action is instituted by
Indemnitee under this Agreement to enforce or interpret any of the terms hereof,
Indemnitee shall be entitled to be paid all court costs and expenses, including
reasonable attorneys' fees, incurred by Indemnitee with respect to such action,
unless as a part of such action, the court of competent jurisdiction determines
that each of the material assertions made by Indemnitee as a basis for such
action were not made in good faith or were frivolous. In the event of an action
instituted by or in the name of the Company under this Agreement or to enforce
or interpret any of the terms of this Agreement, Indemnitee shall be entitled to
be paid all court costs and expenses, including attorneys' fees, incurred by
Indemnitee in defense of such action (including with respect to Indemnitee's
counterclaims and cross-claims made in such action), unless as a part of such
action the court determines that each of Indemnitee's material defenses to such
action were made in bad faith or were frivolous.

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      13. NOTICE. All notices, requests, demands and other communications under
this Agreement shall be in writing and shall be deemed duly given (i) if
delivered by hand and receipted for by the party addressee, on the date of such
receipt, or (ii) if mailed by domestic certified or registered mail with postage
prepaid, on the third business day after the date postmarked. Addresses for
notice to either party are as shown on the signature page of this Agreement, or
as subsequently modified by written notice.

      14. CONSENT TO JURISDICTION. The Company and Indemnitee each hereby
irrevocably consent to the jurisdiction of the courts of the State of Delaware
for all purposes in connection with any action or proceeding which arises out of
or relates to this Agreement and agree that any action instituted under this
Agreement shall be brought only in the state courts of the State of Delaware.

      15. CHOICE OF LAW. This Agreement shall be governed by and its provisions
construed in accordance with the laws of the State of Delaware, as applied to
contracts between Delaware residents entered into and to be performed entirely
within Delaware without regard to the conflict of law principles thereof.

      16. PERIOD OF LIMITATIONS. No legal action shall be brought and no cause
of action shall be asserted by or in the right of the Company against
Indemnitee, Indemnitee's estate, spouse, heirs, executors or personal or legal
representatives after the expiration of two years from the date of accrual of
such cause of action, and any claim or cause of action of the Company shall be
extinguished and deemed released unless asserted by the timely filing of a legal
action within such two-year period; provided, however, that if any shorter
period of limitations is otherwise applicable to any such cause of action, such
shorter period shall govern.

      17. SUBROGATION. In the event of payment under this Agreement, the Company
shall be subrogated to the extent of such payment to all of the rights of
recovery of Indemnitee, who shall execute all documents required and shall do
all acts that may be necessary to secure such rights and to enable the Company
effectively to bring suit to enforce such rights.

      18. AMENDMENT AND TERMINATION. No amendment, modification, termination or
cancellation of this Agreement shall be effective unless it is in writing signed
by both the parties hereto. No waiver of any of the provisions of this Agreement
shall be deemed or shall constitute a waiver of any other provisions hereof
(whether or not similar) nor shall such waiver constitute a continuing waiver.

      19. INTEGRATION AND ENTIRE AGREEMENT. This Agreement sets forth the entire
understanding between the parties hereto and supersedes and merges all previous
written and oral negotiations, commitments, understandings and agreements
relating to the subject matter hereof between the parties hereto.

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

                                          NOVACEPT, INC.

                                          ------------------------------------
                                          Signature of Authorized Signatory

                                          ------------------------------------
                                          Print Name and Title

                                          Address:
                                                    --------------------------

                                                    --------------------------

AGREED TO AND ACCEPTED:

INDEMNITEE:

------------------------------------
Signature

------------------------------------
Print Name and Title

Address:
         ---------------------------

         ---------------------------

         ---------------------------<PAGE>

                                                                  EXHIBIT - 10.5

[NOVACEPT INNOVATIONS IN HEALTHCARE FOR WOMEN LOGO]

November 15, 1999

                                            September 20, 1999

David Clapper
96 Atkinson Lane
Sudbury, MA 01776

Dear David:

         All of us are pleased that we have been able to reach a mutually
satisfactory agreement with regard to your joining us at Novacept. Below I have
summarized our understanding of the principal terms of your employment.

1.       POSITION.

         a.       You will become the President and Chief Executive Officer of
                  the Company, working out of the Company's headquarters office
                  in Palo Alto, California. You will also become a member of the
                  Company's Board of Directors. As President and CEO, you will
                  have overall responsibility for management of the Company. You
                  will report to the Company's Board of Directors.

         b.       You agree to the best of your ability and experience that you
                  will at all times loyally and conscientiously perform all of
                  the duties and obligations required of and from you pursuant
                  to the express and implicit terms hereof, and to the
                  reasonable satisfaction of the Company. During the term of
                  your employment, you further agree that you will devote all of
                  your business time and attention to the business of the
                  Company and you will not render commercial or professional
                  services of any nature to any person or organization, whether
                  or not for compensation, without the prior written consent of
                  the Company's Board of Directors, and you will not directly or
                  indirectly engage or participate in any business that is
                  competitive in any manner with the business of the Company.
                  Nothing in this letter agreement will prevent you from
                  accepting speaking or presentation engagements in exchange for
                  honoraria or from serving on the Board of Directors of
                  companies and receiving customary compensation in exchange for
                  such services (including stock options grants) or from serving
                  on boards of charitable organizations, or from owning no more
                  than four percent (4%) of the outstanding equity securities of
                  a corporation whose stock is listed on a national stock
                  exchange or market.

2.       START DATE. We will work out a date that is suitable for you to
conclude your obligations with Focal within a reasonable period of time and
begin your position with Novacept. However, we would like to see you take the
helm as soon as possible.

<PAGE>

September 20, 1999
Page 2

3.       PROOF OF RIGHT TO WORK. For purposes of federal immigration law, you
will be required to provide to the Company documentary evidence of your identity
and eligibility for employment in the United States. Such documentation must be
provided to us within three (3) business days of your date of hire, or our
employment relationship with you may be terminated.

4.       COMPENSATION.

         a.       Base Salary. You will be paid a monthly salary of $24,166
                  which is equivalent to $290,000 on an annualized basis. Your
                  salary will be payable in two equal payments per month
                  pursuant to the Company's regular payroll policy (or in the
                  same manner as other officers of the Company). You would be
                  eligible for annual increases as authorized by the
                  compensation committee and approved by the board of directors.

         b.       Bonus. You will be eligible to receive an annual incentive
                  bonus of up to 40% of your annual base salary (guaranteed on a
                  pro rata basis for the remainder of 1999). Fifty percent of
                  this bonus (20%) will be guaranteed over the next four years.
                  However, for any percentage annual increase in your salary
                  that you might receive in each year, your guaranteed bonus for
                  that year will be reduced by the same percentage, e.g. a six
                  percent (6%) increase in base salary would reduce the
                  guaranteed bonus from 20% to 14%. Payment of the remainder of
                  the bonus will be based on achievement of mutually agreed upon
                  milestones.

         c.       Annual Review. Your base salary will be reviewed at the end of
                  each calendar year as part of the Company's normal salary
                  review process.

5.       STOCK OPTIONS.

         a.       Initial Grant. In connection with the commencement of your
                  employment, the Company will recommend that the Board of
                  Directors grant you an option to purchase 600,000 shares of
                  the Company's Common Stock ("Shares" with an exercise price
                  equal to the fair market value on the date of the grant. The
                  current fair market value of the Company's common stock, as
                  most recently determined by the Board of Directors, is $0.45
                  per share. 500,000 of these option shares will vest over 4
                  years at the rate of 1/8th on the six months anniversary of
                  your employment commencement date and 1/48th per month
                  thereafter. A bonus of the 100,000 additional option shares
                  will vest upon the closing of an initial public offering by
                  the Company or a Board-approved sale of the Company. Vesting
                  will, of course depend on your continued employment with the
                  Company. The option will be an incentive stock option to the
                  maximum extent allowed by the tax code and will be subject to
                  the terms of the Company's 1997 Stock Option Plan and the
                  Stock Option Agreement between you and the Company.

                  You may purchase these shares either directly or through a
                  loan from the company secured by the shares. Any unvested
                  shares would be subject to repurchase by the company upon
                  discontinuation of your full time employment with the company.

<PAGE>

September 20, 1999
Page 3

         b.       Subsequent Option Grants. Subject to the discretion of the
                  Company's Board of Directors, you may be eligible to receive
                  additional grants of stock options or purchase rights from
                  time to time in the future, on such terms and subject to such
                  conditions as the Board of Directors shall determine as of the
                  data of any such grant.

6.       BENEFITS.

         a.       Insurance Benefits. The Company will provide you with the
                  company's standard medical and dental insurance benefits. In
                  addition, the Company currently indemnifies all officers and
                  directors to the maximum extent permitted by law, and you will
                  be requested to enter into the Company's standard form of
                  Indemnification Agreement giving you such protection. Pursuant
                  to the Indemnification Agreement the Company will agree to
                  advance any expenses for which indemnification is available to
                  the extent allowed by applicable law.

                  The company will carry "key man" life insurance of $2 million
                  on you as President and CEO payable to the company and will
                  pay for a $1 million life insurance policy payable to your
                  heirs.

         b.       Vacation. You will be entitled to 3 weeks paid vacation per
                  year, pro-rated for the remainder of this calendar year.

7.       RELOCATION EXPENSES. In connection with your relocation from Boston to
the San Francisco Bay Area, the Company will reimburse you for all the usual and
customary relocation expenses including moving expenses, travel, and expenses
associated with the sale of your current residence, costs associated with the
purchase of a new residence e.g. mortgage points to a limit of 1.5% and other
closing costs, etc., including the federal income tax gross on taxable amounts.

8.       MORTGAGE ASSISTANCE. We understand that you plan to provide assets of
up to $500,000 toward the purchase of a new home in the San Francisco Bay Area.
We agree to reimburse you for providing these funds with a payment of $3700 per
month to assist you in this effort. This payment will be discontinued upon the
next equity financing of the Company in which at least $5 million is raised.
After the successful completion of such financing, the company will loan you
$500,000 which will be forgiven on a pro rata basis over four years commencing
on the date of your employment with the company.

In addition, the company will give you a mortgage assistance payment of $10,000
per month for the first two years of your employment. In year three you will
receive a monthly payment of $8000: in year four a monthly payment of $7000 and
in year five a monthly payment of $6000.

In the event that you terminate your employment with the Company before the end
of the first year of employment, you agree to repay the Company 100% of the
relocation and mortgage assistance costs incurred by the company and repay the
remaining unforgiven portion of the $500,000 loan.

9.       TEMPORARY LIVING COSTS. In order to assist you in the short term
relocation the company will reimburse your temporary cost of housing in the San
Francisco Bay Area for a period of up to 6 months.

<PAGE>

September 20, 1999
Page 4

10.      CONFIDENTIAL INFORMATION AND INVENTION ASSIGNMENT AGREEMENT. Your
acceptance of this offer and commencement of employment with the Company is
contingent upon the execution and delivery, to an officer of the Company, of the
Company's Confidential Information and Invention Assignment Agreement prior to
or on your Start Date.

11.      CONFIDENTIALITY OF TERMS. You agree to follow the Company's strict
policy that employees must not disclose, either directly or indirectly, any
information, including any of the terms of this agreement, regarding salary,
bonuses or stock purchase or option allocations to any person, including other
employees of the Company; provided, however, that you may discuss such terms
with members of your immediate family and any legal, tax or accounting
specialists who provide you with individual legal, tax or accounting advice.

12.      AT-WILL EMPLOYMENT. Your employment with the Company will be on an "at
will" basis, meaning that either you or the Company may terminate your
employment at any time for any reason or no reason, without further obligation
or liability.

13.      CHANGE IN CONTROL. Should the company undergo a change in control,
whether by merger, reorganization, consolidation, sale of assets or otherwise,
in which 50% or more of the ownership of the company is controlled by one entity
your unvested stock would vest in full upon the completion of such transaction.

14.      TERMINATION/SEVERANCE. Should the company terminate your employment for
reasons other than cause you will receive one year's salary and bonus and your
stock will vest forward one year. In addition, your mortgage assistance would
continue for one year.

         David, I believe this represents our discussion and is an exceptionally
attractive package. especially coupled with the equity appreciation opportunity
and the high probability of success. We would like to conclude this agreement
and extend this offer to expire at 5:00 p.m. on Monday, September 27, 1999 if
not previously accepted. If these terms are satisfactory and agreeable please
execute both copies of this letter and return one to me.

         We look forward to your acceptance and beginning the next exciting
phase of corporate development at Novacept under your leadership.

                                      Sincerely,

                                      /s/ Rodney Perkins, M.D.
                                      Rodney Perkins, M.D.
                                      Chairman & Chief Executive Officer

ACCEPTED AND AGREED:

DAVID CLAPPER

/s/ David Clapper
---------------------
Signature

9/27/99
---------------------
Date

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