Document:

<PAGE>

                                                                    Exhibit 10.1

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

                                                Agreement No. A3885

                      STANDARD EXCLUSIVE LICENSE AGREEMENT
                             WITH SUBLICENSING TERMS

                                TABLE OF CONTENTS

                      Section  1  Definitions
                      Section  2  Grant
                      Section  3  Diligence
                      Section  4  Royalties
                      Section  5  Certain Warranties and Disclaimers of UFRF
                      Section  6  Record keeping
                      Section  7  Patent Prosecution
                      Section  8  Infringement and Invalidity
                      Section  9  Term and Termination
                      Section 10  Assignability
                      Section 11  Dispute Resolution Procedures
                      Section 12  Product Liability; Conduct of Business
                      Section 13  Confidentiality
                      Section 14  Miscellaneous
                      Section 15  Notices
                      Section 16  Contract Formation and Authority

                      Appendix A  Development Plan
                      Appendix B  Development Report
                      Appendix C  UFRF Royalty Report

   This Agreement is made effective the 2nd day of September, 2004, (the
"Effective Date") by and between the University of Florida Research Foundation,
Inc. (hereinafter called "UFRF"), a nonstock, nonprofit Florida corporation, and
Critical Therapeutics, Inc. (hereinafter called "CTI"), a corporation organized
and existing under the laws of Delaware;

   WHEREAS, UFRF owns certain inventions that are described in the "Licensed
Patents" defined below, and UFRF is willing to grant a license to CTI under the
Licensed Patents and CTI desires a license under such Licensed Patents;

   NOW, THEREFORE, in consideration of the mutual covenants and agreements set
forth below, the parties covenant and agree as follows:

                                     Page 1
<PAGE>

SECTION 1 DEFINITIONS

      1.1.  "Affiliate" shall mean any corporation or entity controlling,
            controlled by or under the common control of UFRF or CTI or any
            third party, as the case may be. For the purpose of this definition,
            "control" shall mean direct or indirect ownership of fifty percent
            (50%) or more of the stock or shares entitled to vote for the
            election of directors.

      1.2.  "Compound" shall mean cinnamylidene-anabaseines. For the avoidance
            of doubt, Compound shall not include benzylidene-anabaseines.

      1.3.  "Development Plan" shall mean a written report summarizing the
            development activities that are to be undertaken by the CTI to bring
            Products to the market. The Development Plan is attached as Appendix
            A.

      1.4.  "Development Report" shall mean a written account of CTI's progress
            under the Development Plan having at least the information specified
            in Appendix B to this Agreement, and shall be sent to the address
            specified on Appendix B.

      1.5   "Field" shall mean the treatment, diagnosis or prophylaxis of a
            disease in a mammal as well as any research or development
            activities directed thereto.

      1.6   "Improvements" shall mean any modification of an invention described
            in the Licensed Patents which, if unlicensed, would infringe one or
            more claims of the Licensed Patents.

      1.7   "Licensed Patents" shall mean the United States patent(s)/patent
            application(s) entitled "Methods of use and compositions for
            benzylidene and cinnamylidene-anabaseines" filed in the United
            States Patent Office on August 29, 1997, and assigned Serial Number
            08/924,008, issued as US 5,977,144, and all United States patents
            and foreign patents and patent applications based on this U.S.
            application.

      1.8   "Net Sales" shall mean the amount invoiced on sales (regardless of
            uncollectible accounts) of Product after deducting, if not already
            deducted in the amount invoiced:

                  -     Trade and/or quantity discounts

                  -     Credits on returns and allowances

                  -     Outbound transportation costs paid

            The "Net Sales" for a Licensed Product or Licensed Process that is
            transferred to a third party for promotional purposes without charge
            or at a discount shall be the average invoiced price to the customer
            of that type of Licensed Product and/or Licensed Process during the
            applicable calendar quarter.

      1.9   "Product" shall mean any product or part thereof developed by or on
            behalf of CTI that contains the Compound and is covered in whole or
            in part by a Valid Claim in the country in which such product is
            made, used or sold.

      1.10  "Sublicensee" shall mean any third party to whom CTI confers the
            right to make, use or sell one or more Products.

                                     Page 2
<PAGE>

      1.11  "Territory" shall mean all of the countries of the world.

      1.12  "Valid Claim" shall mean a claim of any issued, unexpired United
            States or foreign patent that shall not have been donated to the
            public, disclaimed, nor held invalid or unenforceable against
            another Party by a court of competent jurisdiction in an unappealed
            or unappealable decision.

SECTION 2 GRANT

      2.1   License.

            UFRF hereby grants to CTI an exclusive license under the Licensed
            Patents solely to make, use and sell Products in the Field in the
            Territory.

      2.2   Sublicense.

            2.2.1 CTI may grant sublicenses to third parties without the consent
                  of UFRF. CTI shall have the same responsibility for the
                  activities of any Sublicensee or Affiliate of CTI as if the
                  activities were directly those of CTI.

            2.2.2 Any sublicense granted hereunder shall be on substantially the
                  same terms mutatis mutandis as the terms of this Agreement
                  insofar as they are applicable.

            2.2.3 Where a sublicense has been granted under Section 2.2.1, such
                  sublicense shall automatically terminate if this Agreement
                  terminates for the country or countries covered by the
                  sublicense.

            2.2.4 If CTI receives any fees, minimum royalties, or other payments
                  in consideration for any rights granted under a sublicense,
                  and such payments are not based directly upon the amount or
                  value of Licensed Products sold by the Sublicensee, then CTI
                  shall pay UFRF [**] percent ([**]%) of such payments in the
                  manner specified in Section 4.4.

            2.2.5 CTI shall provide UFRF with a copy of each sublicense
                  agreement no more than thirty (30) days after the execution of
                  the sublicense agreement.

SECTION 3 DILIGENCE

      3.1   Development.

            3.1.1 CTI shall use its diligent efforts to develop, market and sell
                  the Products at its own expense. CTI shall independently
                  evaluate the inventions of the Licensed Patents and will
                  exercise best efforts to pursue the Development Plan (see
                  Appendix A ). All development activities and strategies and
                  all aspects of product design and decisions to market and the
                  like are entirely at the discretion of CTI.

            3.1.2 Until the date of first commercial sale of Licensed Products,
                  CTI will supply UFRF with a written Development Report
                  annually thirty (30) days after the end of the calendar year
                  (see Appendix B ). UFRF's review of CTI's Development Plan
                  shall

                                     Page 3
<PAGE>

                  be solely to verify the existence of CTI's commitment to
                  development activity and to ensure compliance with CTI's
                  obligations to commercialize the inventions of the Licensed
                  Patents, as set forth above.

SECTION 4 ROYALTIES

      4.1   License Issue Fee.

            CTI agrees to pay to UFRF a $75,000 within thirty (30) days of the
            Effective Date.

      4.2   Running Royalty.

            4.2.1 In addition to the fee paid to UFRF under Section 4.1, CTI
                  agrees to pay to UFRF a royalty calculated as a percentage of
                  Net Sales of Product in accordance with the terms and
                  conditions of this Agreement.

            4.2.2 The royalty shall remain fixed while this Agreement is in
                  effect at a rate of [**] percent ([**]%) of total annual Net
                  Sales of Product of $[**] and [**] percent ([**]%) of total
                  annual Net Sales of Product of $[**].

                  Royalties shall be based on the total annual Net Sales of
                  Product in all relevant countries during a particular calendar
                  year for which is a royalty is due.

            4.2.3 If CTI is required to pay patent royalties to third-parties to
                  make, use or sell Licensed Product in a particular country,
                  [**]% of considerations paid by licensee under such third
                  party licenses are creditable against royalties due, provided
                  that the royalties payable to UFRF in a given year shall [**]

            4.2.4 Sales of Products between CTI and its Affiliates or
                  Sublicensees, or among such Affiliates and Sublicensees, shall
                  not be subject to royalties under this Article 4, but, in such
                  cases, the royalties shall be calculated on the Net Sales of
                  Product by the Affiliates or Sublicensees to a third party and
                  such royalties shall be payable to UFRF as provided in section
                  4.2.2.

      4.3   Other Payments.

            4.3.1 CTI agrees to pay UFRF minimum royalty payments, as follows

                        (a) $[**] ([**] dollars) per year up to and including
                        the year of the first sale of Product; and

                        (b) $[**] ([**] dollars) per year for the remaining Term
                        of the Agreement starting the year after the first sale
                        of Product (collectively "Minimum Royalty").

            4.3.2 The Minimum Royalty shall be paid in advance on a quarterly
                  basis for each year in which this Agreement is in effect;
                  provided, however, the first Minimum Royalty payment shall be
                  due on January 1, 2005, and shall be in the full yearly amount
                  of $[**] and no additional Minimum royalty payments shall be
                  due in 2005. For each year after 2005, the Minimum Royalty for
                  a given year shall be due in advance and

                                     Page 4
<PAGE>

                  shall be paid in quarterly installments on March 31, June 30,
                  September 30, and December 31 for the following quarter.

            4.3.3 Any Minimum Royalty paid in a calendar year will be credited
                  against the earned royalties for that calendar year. It is
                  understood that the Minimum Royalties will be applied to
                  earned royalties on a calendar year basis, and that sales of
                  Products requiring the payment of earned royalties made during
                  a prior or subsequent calendar year shall have no effect on
                  the annual Minimum Royalty due UFRF for other than the same
                  calendar year in which the royalties were earned.

            4.3.4 In addition to all other payments required under this
                  Agreement, CTI agrees to pay UFRF Milestone payments within 60
                  days of the Event, as follows:

<TABLE>
<CAPTION>
Payment                   Event
-------                   -----
<S>                       <C>
$[**]                     [**]

$[**]                     [**]

$[**]                     [**]
</TABLE>

            4.3.5 CTI shall complete the following Development Milestones by the
                  noted date:

<TABLE>
<CAPTION>
Development Milestones    Date
----------------------    ----------------------
<S>                       <C>
[**]                      Within [**] of Effective Date

[**]                      Within [**] of Effective Date

[**]                      Within [**] of Effective Date
</TABLE>

                  Licensee agrees to make a good faith effort to meet the
                  milestones in Section 4.3.5 by the dates indicated. If the
                  milestones are not met, UFRF and Licensee will make every
                  attempt to renegotiate the milestones. Such renegotiation is
                  not to be unreasonably withheld by UFRF and if necessary,
                  shall be subject to the Dispute Resolution Procedures set
                  forth in Section 11. If renegotiation is unsuccessful,
                  termination according to Section 9.3 is applicable.

      4.4   Accounting for Payments.

            4.4.1 Amounts owing to UFRF under Sections 2.2 and 4.2 shall be paid
                  on a quarterly basis after the amount of Minimum Royalties
                  paid is exceeded, with such amounts due and received by UFRF
                  on or before the thirtieth day following the end of the
                  calendar quarter ending on March 31, June 30, September 30 or
                  December 31 in which such amounts were earned. The balance of
                  any amounts which remain unpaid more than thirty (30) days
                  after they are due to UFRF shall accrue interest until paid at
                  the rate of the lesser of one and one-half percent (1.5%) per
                  month or the maximum amount allowed under applicable law.
                  However, in no event shall this interest provision be
                  construed as a grant of permission for any payment delays.

                                     Page 5
<PAGE>

                  CTI shall also be responsible for repayment to UFRF of any
                  attorney, collection agency, or other out-of-pocket UFRF
                  expenses required to collect overdue payments due from this
                  Section 4.4.1, Section 6.2 or any other applicable section of
                  this Agreement.

            4.4.2 Except as otherwise directed, all amounts owing to UFRF under
                  this Agreement shall be paid in U.S. dollars to UFRF at the
                  following address:

              University of Florida Research Foundation, Inc.
              223 Grinter Hall
              PO Box 115500
              Gainesville, Florida 32611-5500
              Attention: Business Manager

              All royalties owing with respect to Net Sales stated in currencies
              other than U.S. dollars shall be converted at the rate shown in
              the Federal Reserve Noon Valuation - Value of Foreign Currencies
              on the day preceding the payment.

            4.4.3 A full accounting statement showing how any amounts payable to
                  UFRF under Section 4.2 have been calculated shall be submitted
                  to UFRF on the date of each royalty payment. Such accounting
                  shall be on a per-country and product line, model or trade
                  name basis and shall be summarized on the form shown in
                  Appendix C of this Agreement. In the event no payment is owed
                  to UFRF because the amount of Minimum Royalties paid has not
                  been exceeded or otherwise, an accounting demonstrating that
                  fact shall be supplied to UFRF.

            4.4.4 UFRF is exempt from paying income taxes under U.S. law.
                  Therefore, all payments due under this Agreement shall be made
                  without deduction for taxes, assessments, or other charges of
                  any kind which may be imposed on a corporation by the U.S.
                  government.

SECTION 5 CERTAIN WARRANTIES AND DISCLAIMERS OF UFRF

      5.1   UFRF warrants that it is the owner of the Licensed Patents or
            otherwise has the right to grant the licenses granted to CTI in this
            Agreement and that the license granted herein does not conflict with
            any other agreement to which UFRF is a party. However, nothing in
            this Agreement shall be construed as:

            5.1.1 a warranty or representation by UFRF as to the validity or
                  scope of any right included in the Licensed Patents;

            5.1.2 a warranty or representation that anything made, used, sold or
                  otherwise disposed of under the license granted in this
                  Agreement will or will not infringe patents of third parties;

                                     Page 6
<PAGE>

            5.1.3 an obligation to bring or prosecute actions or suits against
                  third parties for infringement of Licensed Patents;

            5.1.4 an obligation to furnish any know-how not provided in Licensed
                  Patents or any services other than those specified in this
                  Agreement; or

            5.1.5 a warranty or representation by UFRF that it will not grant
                  licenses to others to make, use or sell products not covered
                  by the claims of the Licensed Patents which may be similar
                  and/or compete with products made or sold by CTI.

      5.2   EXCEPT AS OTHERWISE EXPRESSLY SET FORTH IN THIS AGREEMENT, UFRF
            MAKES NO REPRESENTATIONS AND EXTENDS NO WARRANTIES OF ANY KIND,
            EITHER EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO WARRANTIES
            OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, AND VALIDITY
            OF PATENT RIGHTS CLAIMS, ISSUED OR PENDING. UFRF ASSUMES NO
            RESPONSIBILITIES WHATSOEVER WITH RESPECT TO USE, SALE, OR OTHER
            DISPOSITION BY CTI, ITS SUBLICENSEE(S), OR THEIR VENDEES OR OTHER
            TRANSFEREES OF PRODUCT INCORPORATING OR MADE BY USE OF INVENTIONS
            LICENSED UNDER THIS AGREEMENT.

SECTION 6 RECORD KEEPING

      6.1   CTI and its Sublicensee(s) shall keep books and records sufficient
            to verify the accuracy and completeness of CTI's and its
            Sublicensee(s)'s accounting referred to above, including without
            limitation, inventory, purchase and invoice records, manufacturing
            records, sales analysis, general ledgers, financial statements, and
            tax returns relating to the Products. Such books and records shall
            be preserved for a period not less than six years after they are
            created, both during and after the term of this Agreement.

      6.2   CTI and its Sublicensee(s) shall take all steps necessary so that
            UFRF may, within thirty (30) days of its written request, audit,
            review and/or copy all of the books and records relevant to the Net
            Sales of Products at a single U.S. location to verify the accuracy
            of CTI's and its Sublicensee(s)'s accounting. Such review may be
            performed by any authorized employees of UFRF as well as by any
            attorneys and/or accountants designated by UFRF, upon reasonable
            notice and during regular business hours, subject to the
            confidentiality provisions of this Agreement. If a deficiency with
            regard to any payment hereunder is determined, CTI and its
            Sublicensee(s) shall pay the deficiency within thirty (30) days of
            receiving notice thereof along with applicable interest as described
            in Section 4.4.1. If a royalty payment deficiency for a calendar
            year exceeds five percent (5%) of the royalties paid for that year,
            then CTI and its Sublicensee(s) shall be responsible for paying
            UFRF's out-of-pocket expenses incurred with respect to such review.

      6.3   At any time during the term of this agreement but no more than once
            during a calendar year, UFRF may request in writing that CTI verify
            the calculation of any past payments owed to UFRF through the means
            of a self-audit. Within ninety (90) days of the request, CTI shall
            complete a self-audit of its books and records to verify the
            accuracy and completeness of the payments owed. Within thirty (30)
            days of the completion of the self-audit, CTI shall submit to UFRF a
            report detailing the findings of the self-audit and the manner in
            which it was conducted in order to verify the accuracy and
            completeness of the payments owed. If CTI has

                                     Page 7
<PAGE>

            determined through its self-audit that there is any payment
            deficiency, CTI shall pay UFRF the deficiency along with applicable
            interest under Section 4.4.1 with the submission of the self-audit
            report to UFRF.

SECTION 7 PATENT PROSECUTION

      7.1   UFRF shall diligently file, prosecute and maintain the Licensed
            Patents using counsel of its choice. UFRF shall provide CTI with
            copies of all patent applications, amendments, and other filings
            with the United States Patent and Trademark Office and foreign
            patent offices no less than thirty (30) days prior to submitting
            such documents with the relevant patent office. UFRF will also
            provide CTI with copies of office actions and other communications
            received by UFRF from the United States Patent and Trademark Office
            and foreign patent offices relating to Licensed Patents. CTI shall
            have the right to review and comment on all filings made with any
            patent office. UFRF shall use its best efforts to incorporate any
            comments made by CTI. CTI and UFRF agree to keep such information
            confidential.

      7.2   UFRF shall not abandon any of the Licensed Patents or Improvements.

      7.3   Any Improvements made by or for CTI or UFRF and/or their respective
            Affiliate(s) shall be the property of UFRF. CTI shall notify UFRF of
            any Improvements made by or for CTI and/or its Affiliate(s).

      7.4   CTI shall be responsible for and pay [**] percent ([**]%) of all
            future costs and expenses incurred by UFRF for the preparation,
            filing, prosecution, issuance, and maintenance of the Licensed
            Patents within thirty (30) days of receipt of an invoice from UFRF;
            provided, however, in the event UFRF grants a license to the
            Licensed Patents to a large entity with respect to the U.S. patent
            laws and with respect to the patent laws of any other countries, if
            applicable, then CTI shall only be required to pay [**]% of any
            costs and expenses that would be incurred by a small entity taking
            the same actions with respect to a patent office. Further, if UFRF
            licenses the Licensed Patents to more than [**] entities, then CTI
            shall only be responsible for a proportionate share of the
            above-noted costs and expenses based on the number of licensed
            entities. For example, if there are [**] licensed entities then CTI
            shall only be responsible for [**] of the relevant costs and
            expenses.

      7.5   It shall be the responsibility of CTI to keep UFRF fully apprised of
            the "small entity" status of CTI with respect to the U.S. patent
            laws and with respect to the patent laws of any other countries, if
            applicable, and to inform UFRF of any changes in such status, within
            thirty days of any such change.

SECTION 8 INFRINGEMENT AND INVALIDITY

      8.1   CTI shall inform UFRF promptly in writing of any alleged
            infringement of the Licensed Patents by a third party and of any
            available evidence thereof.

      8.2   During the term of this Agreement, CTI shall have the right, but not
            the obligation, to prosecute at its own expense and for its own
            benefit any such infringements of the Licensed Patents in the Field
            as it relates to the Compounds. If CTI prosecutes any such
            infringement, UFRF agrees that CTI may include UFRF as a
            co-plaintiff in any such suit, without expense to UFRF.

                                     Page 8
<PAGE>

      8.3   If within six (6) months after having been notified of any alleged
            infringement, CTI shall have been unsuccessful in persuading the
            alleged infringer to desist and shall not have brought and shall not
            be diligently prosecuting an infringement action, or if CTI shall
            notify UFRF at any time prior thereto of its intention not to bring
            suit against any alleged infringer, then, and in those events only,
            UFRF shall have the right, but not the obligation, to prosecute at
            its own expense any infringement of the Licensed Patents, and UFRF
            may, for such purposes, use the name of CTI as party plaintiff. No
            settlement, consent judgment or other voluntary final disposition of
            the suit may be entered into without the consent of CTI, which
            consent shall not unreasonably withheld. UFRF shall indemnify CTI
            against any order for costs that may be made against CTI in such
            proceedings.

      8.4   In the event that UFRF shall undertake the enforcement by litigation
            and/or defense of the Licensed Patents by litigation, any recovery
            of damages by UFRF for any such suit shall be applied first in
            satisfaction of any unreimbursed expenses and legal fees of UFRF
            relating to the suit, and next toward reimbursement of CTI for any
            legal fees, and unreimbursed expenses. The balance remaining from
            any such recovery shall be divided [**] between CTI and UFRF.

      8.5   In any infringement suit that either party may institute to enforce
            the Licensed Patents pursuant to this Agreement, the other party
            hereto shall, at the request and expense of the party initiating
            such suit, cooperate in all respects and, to the extent possible,
            have its employees testify when requested and make available
            relevant records, papers, information, samples, specimens, and the
            like.

      8.6   In the event a declaratory judgment action alleging invalidity or
            noninfringement of any of the Licensed Patents shall be brought
            against UFRF, CTI, at its option, shall have the right, within
            thirty (30) days after commencement of such action, to intervene and
            take over the sole defense of the action at its own expense.

      8.7   In the event CTI contests the validity of any Licensed Patents, CTI
            shall continue to pay royalties and make other payments pursuant to
            this Agreement with respect to that patent as if such contest were
            not underway until the patent is adjudicated invalid or
            unenforceable by a court of last resort.

SECTION 9 TERM AND TERMINATION

      9.1   The term of this license shall begin on the Effective Date of this
            Agreement and continue until the earlier of the date that no
            Licensed Patent remains an enforceable patent or the payment of
            earned royalties under Section 4.2, once begun, ceases for more than
            two (2) calendar quarters.

      9.2   CTI may terminate this Agreement at any time by giving at least
            sixty (60) days written notice of such termination to UFRF. Such a
            notice shall be accompanied by a statement of the reasons for
            termination.

      9.3   If CTI at any time defaults in the timely payment of any monies due
            to UFRF or the timely submission to UFRF of any Development Report,
            fails to actively pursue the Development Plan, or commits any breach
            of any other covenant herein contained, and CTI fails to remedy

                                     Page 9
<PAGE>

            any such breach or default within ninety (90) days after written
            notice thereof by UFRF, UFRF may, at its option, terminate this
            Agreement immediately upon written notice to CTI.

      9.4   If CTI shall cease to carry on its business pertaining to Licensed
            Patents, this Agreement shall terminate upon thirty (30) days notice
            by UFRF.

      9.5   UFRF may immediately terminate this Agreement upon the occurrence of
            the second separate default by Licensee within any consecutive six
            month period for failure to pay royalties, patent or any other
            expenses when due.

      9.6   Upon the termination of this Agreement for any reason, nothing
            herein shall be construed to release either party from any
            obligation that matured prior to the effective date of such
            termination. CTI shall remain obligated to provide an accounting for
            and to pay royalties earned to the date of termination, and any
            Minimum Royalties shall be prorated as of the date of termination by
            the number of days elapsed in the applicable calendar year. CTI may,
            however, after the effective date of such termination, sell all
            Licensed Products, and complete Licensed Products in the process of
            manufacture at the time of such termination and sell the same,
            provided that CTI shall remain obligated to provide an accounting
            for and to pay running royalties thereon.

SECTION 10 ASSIGNABILITY

      This Agreement may not be transferred or assigned by CTI except with the
      prior written consent of UFRF; provided, however, that CTI shall be
      entitled to assign its rights under this Agreement to an Affiliate or in
      connection with the sale of all or substantially all of the business and
      assets of CTI 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.

SECTION 11 DISPUTE RESOLUTION PROCEDURES

      11.1  Mandatory Procedures.

            In the event either party intends to file a lawsuit, other than
            pursuant to Section 8.7, against the other with respect to any
            matter in connection with this Agreement, compliance with the
            procedures set forth in this Section shall be a condition precedent
            to the filing of such lawsuit, other than for injunctive relief.
            Either party may terminate this Agreement as provided in this
            Agreement without following the procedures set forth in this
            section.

            11.1.1 When a party intends to invoke the procedures set forth in
                   this section, written notice shall be provided to the other
                   party. Within thirty (30) days of the date of such notice,
                   the parties agree that representatives designated by the
                   parties shall meet at mutually agreeable times and engage in
                   good faith negotiations at a mutually convenient location to
                   resolve such dispute.

            11.1.2 If the parties fail to meet within the time period set forth
                   in section 11.1.1 above or if either party subsequently
                   determines that negotiations between the representatives of
                   the parties are at an impasse, the party declaring that the
                   negotiations are at an impasse shall give notice to the other
                   party stating with particularity the issues that remain in
                   dispute.

                                    Page 10
<PAGE>

            11.1.3 Not more than 15 business days after the giving of such
                   notice of issues, each party shall deliver to the other party
                   a list of the names and addresses of at least three
                   individuals, any one of whom would be acceptable as a neutral
                   advisor in the dispute (the "Neutral Advisor") to the party
                   delivering the list. Any individual proposed as a Neutral
                   Advisor shall have experience in determining, mediating,
                   evaluating, or trying intellectual property litigation and
                   shall not be affiliated with the party that is proposing such
                   individual.

            11.1.4 Within 10 days after delivery of such lists, the parties
                   shall agree on a Neutral Advisor. If they are unable to so
                   agree within that time, within 5 days, they shall each select
                   one individual from the lists. Within 5 days, the individuals
                   so selected shall meet and appoint a third individual from
                   the lists to serve as the Neutral Advisor. Within 30 days
                   after the selection of a Neutral Advisor:

               (a) The parties shall each provide a written statement of the
                   issues in dispute to the Neutral Advisor.

               (b) The parties shall meet with the Neutral Advisor in
                   Gainesville, Florida on a date and time established by the
                   Neutral Advisor. The meeting must be attended by persons
                   authorized to make final decisions on behalf of each party
                   with respect to the dispute. At the meeting, each party shall
                   make a presentation with respect to its position concerning
                   the dispute. The Neutral Advisor will then discuss the issues
                   separately with each party and attempt to resolve all issues
                   in the dispute. At the meeting, the parties will enter into a
                   written settlement agreement with respect to all issues that
                   are resolved. Such settlement agreement shall be final and
                   binding with respect to such resolved issues and may not be
                   the subject of any lawsuit between the parties, other than a
                   suit for enforcement of the settlement agreement.

            11.1.5 The expenses of the Neutral Advisor shall be shared by the
                   parties equally. All other out-of-pocket costs and expenses
                   for the alternative dispute resolution procedure required
                   under this Section shall be paid by the party incurring the
                   same.

            11.1.6 Positions taken and statements made during this alternative
                   dispute resolution procedure shall be deemed settlement
                   negotiations and shall not be admissible for any purpose in
                   any subsequent proceeding.

      11.2  Failure to Resolve Dispute.

            If any issue is not resolved at the meeting with the Neutral
            Advisor, either party may file appropriate administrative or
            judicial proceedings with respect to the issue that remains in
            dispute. No new issues may be included in the lawsuit without the
            mandatory procedures set forth in this section having first been
            followed.

      11.3  Survival.

            The provisions of this Section shall survive termination of this
            Agreement.

                                    Page 11
<PAGE>

SECTION 12 PRODUCT LIABILITY; CONDUCT OF BUSINESS

      12.1  CTI and its Sublicensee(s) shall, at all times during the term of
            this Agreement and thereafter, indemnify, defend and hold UFRF, the
            Florida Board of Governors, the University of Florida Board of
            Trustees, the University of Florida, and each of their directors,
            officers, employees, and agents, and the inventors of the Licensed
            Patents, regardless of whether such inventors are employed by the
            University of Florida at the time of the claim, harmless against all
            claims and expenses, including legal expenses and reasonable
            attorneys fees, whether arising from a third party claim or
            resulting from UFRF's enforcing this indemnification clause against
            CTI, arising out of the death of or injury to any person or persons
            or out of any damage to property and against any other claim,
            proceeding, demand, expense and liability of any kind whatsoever
            (other than patent infringement claims) resulting from the
            production, manufacture, sale, use, lease, consumption, marketing,
            or advertisement of Licensed Products or Licensed Process(es) or
            arising from any right or obligation of CTI hereunder. CTI shall
            only be liable to UFRF for consequential, exemplary, incidental,
            indirect or special damages or costs, including, but not limited to,
            lost profits or loss of goodwill, in the event such damages are
            awarded by a court of competent jurisdiction to a third party that
            has brought a cause of action against UFRF and UFRF is seeking
            indemnification under this Section 12.1. In any other event, CTI
            shall not have any liability to UFRF for any consequential,
            exemplary, incidental, indirect or special damages or costs,
            including, but not limited to, lost profits or loss of goodwill.
            Notwithstanding the above, UFRF at all times reserves the right to
            retain counsel of its own to defend UFRF's, the Florida Board of
            Governors', the University of Florida Board of Trustees', the
            University of Florida's, and the inventor's interests.

      12.2  CTI warrants that it shall have, at all relevant times, liability
            insurance coverage appropriate to the risk involved in producing,
            manufacturing, selling, marketing, using, leasing, consuming, or
            advertising the products subject to this Agreement and that such
            insurance coverage shall list UFRF, the Florida Board of Governors,
            the University of Florida Board of Trustees, the University of
            Florida, and the inventors of the Licensed Patents as additional
            insureds. Within thirty(30) days after the execution of this
            Agreement and thereafter annually between January 1 and January 31
            of each year, CTI will present evidence to UFRF that the coverage is
            being maintained with UFRF, the University of Florida, and its
            inventors listed as additional insureds. In addition, CTI shall
            provide UFRF with at least thirty (30) days prior written notice of
            any reduction in or cancellation of the insurance coverage.

SECTION 13 CONFIDENTIALITY

            13.1.1 The parties agree that it will be necessary, from time to
                   time, to disclose to each other confidential and proprietary
                   information, including inventions, works of authorship, trade
                   secrets, specifications, designs, data, know-how and other
                   proprietary information relating to the Field, the Products,
                   processes, services and business of the disclosing party and
                   the Licensed Patents. The foregoing shall be referred to
                   collectively as "CONFIDENTIAL INFORMATION".

            13.1.2 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.

                                    Page 12
<PAGE>

            13.1.3 Save as otherwise specifically provided herein (and in
                   particular subject to Clause 13.3), 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. Each party further agrees to inform all
                   such employees, representatives and agents of the terms and
                   provisions of this Agreement relating to Confidential
                   Information and their duties hereunder. 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. Each party shall promptly, upon request of the other
                   party, return all documents and any copies thereof containing
                   Confidential Information belonging to, or disclosed by, such
                   other party.

            13.1.4 Any breach of this Clause 13 by any person informed by one of
                   the parties is considered a breach by the party itself.

            13.1.5 Confidential Information shall be deemed not to include:

                   (a)  information which is in the public domain;

                   (b)  information which is made public through no breach of
                        this Agreement;

                   (c)  information which is independently developed by a party,
                        as evidenced by such party's records;

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

            13.1.6 The provisions relating to confidentiality in this Clause 13
                   shall remain in effect during the term of this Agreement, and
                   for a period of 5 years following the expiration or earlier
                   termination of this Agreement.

            13.1.7 The parties agree that the obligations of this Clause 13 are
                   necessary and reasonable in order to protect the parties'
                   respective businesses, and each party agrees that monetary
                   damages would be inadequate to compensate a party for any
                   breach by the other party of its covenants and agreements set
                   forth herein.

                   The parties agree that any such violation or threatened
                   violation shall cause irreparable injury to a party and that,
                   in addition to any other remedies that may be available, in
                   law and equity or otherwise, each party shall be entitled to
                   seek injunctive relief against the threatened breach of the
                   provisions of this Clause 13, or a continuation of any such
                   breach by the other party, specific performance and other
                   equitable relief to redress such breach together with damages
                   and reasonable counsels' fees and expenses to enforce its
                   rights hereunder.

      13.2  Announcements:

                   Subject to Clause 13.3, CTI and its Sublicensee(s) shall not
                   use the names of UFRF, or of the University of Florida, nor
                   of any of either institution's employees, agents, or
                   affiliates, nor the name of any inventor of Licensed Patents,
                   nor any adaptation of such names, in any sales promotion,
                   advertising, or any other form of publicity without the prior
                   written approval of UFRF in each case, except that CTI may
                   state that it has

                                    Page 13
<PAGE>

                   received a license from UFRF under one or more or the patents
                   and/or applications comprising the Licensed Patents.

      13.3  Required Disclosures:

            13.3.1 A party (the "DISCLOSING PARTY") will be entitled to make an
                   announcement or public statement or to disclose Confidential
                   Information that the Disclosing Party is required to make or
                   disclose pursuant to:

                   (a)   a valid order of a court or governmental authority; or

                   (b)   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 hereunder, the Disclosing Party shall give the
                   other party prompt notice of such fact to enable that other
                   party to seek a protective order or other appropriate remedy
                   concerning any such announcement, public statement or
                   disclosure.

            13.3.2 The Disclosing Party shall fully co-operate with the other
                   party in connection with that other party's 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.

SECTION 14 MISCELLANEOUS

      14.1  The parties hereto are independent contractors and not joint
            venturers or partners.

      14.2  CTI shall ensure that it applies patent markings that meet all
            requirements of U.S. law, 35 U.S.C.Section 287, with respect to all
            Licensed Products subject to this Agreement.

      14.3  This Agreement constitutes the full understanding between the
            parties with reference to the subject matter hereof, and no
            statements or agreements by or between the parties, whether orally
            or in writing, shall vary or modify the written terms of this
            Agreement. Neither party shall claim any amendment, modification, or
            release from any provisions of this Agreement by mutual agreement,
            acknowledgment, or otherwise, unless such mutual agreement is in
            writing, signed by the other party, and specifically states that it
            is an amendment to this Agreement.

      14.4  Neither CTI nor UFRF shall encumber or otherwise grant a security
            interest in any of the rights granted hereunder to any third party.

      14.5  CTI acknowledges that it is subject to and agrees to abide by the
            United States laws and regulations (including the Export
            Administration Act of 1979 and Arms Export Contract Act) controlling
            the export of technical data, computer software, laboratory
            prototypes, biological material, and other commodities. The transfer
            of such items may require a license from the cognizant agency of the
            U.S. Government or written assurances by CTI that it shall not
            export such items to certain foreign countries without prior
            approval of such agency. UFRF neither represents that a license is
            or is not required or that, if required, it shall be issued.

                                    Page 14
<PAGE>

SECTION 15 NOTICES

      Any notice required to be given pursuant to the provisions of this
      Agreement shall be in writing and shall be deemed to have been given

                  -     when delivered personally,

                  -     if sent by facsimile transmission, when receipt thereof
                        is acknowledged at the facsimile number of the recipient
                        as set forth below,

                  -     the second day following the day on which the notice has
                        been delivered prepaid to a national air courier
                        service, or

                  -     five (5) business days following deposit in the U.S.
                        mail if sent certified mail, return receipt requested:

      15.1  If to the University of Florida Research Foundation, Inc.:

                  President
                  University of Florida Research Foundation, Inc.
                  223 Grinter Hall
                  University of Florida
                  Post Office Box 115500
                  Gainesville, FL 32611-5500
                  Facsimile Number: 352-846-0491

                  with a copy to:
                  Office of Technology Licensing
                  Attn: Director
                  308 Walker Hall
                  University of Florida
                  Post Office Box 115500
                  Gainesville, Florida 32611-5500
                  Facsimile Number: 352-392-6600

      15.2  If to CTI:

                  Chief Executive Officer
                  Critical Therapeutics, Inc.
                  60 Westview Street
                  Lexington, MA 02421
                  Facsimile number: 781-402-5729

SECTION 16 CONTRACT FORMATION AND AUTHORITY

      16.1  No agreement between the parties shall exist unless the duly
            authorized representative of CTI and the Director of the Office of
            Technology Transfer of UFRF have signed this document within thirty
            (30) days of the Effective Date written on the first page of this
            Agreement.

      16.2  UFRF and CTI hereby warrant and represent that the persons signing
            this Agreement have authority to execute this Agreement on behalf of
            the party for whom they have signed.

                                    Page 15
<PAGE>

      16.3  Force Majeure.

            No default, delay, or failure to perform on the part of CTI or UFRF
            shall be considered a default, delay or failure to perform otherwise
            chargeable hereunder, if such default, delay or failure to perform
            is due to causes beyond either party's reasonable control including,
            but not limited to: strikes, lockouts, or inactions of governmental
            authorities, epidemics, war, embargoes, fire, earthquake, acts of
            God, or default of common carrier. In the event of such default,
            delay or failure to perform, any date or times by which either party
            is otherwise scheduled to perform shall be extended automatically
            for a period of time equal in duration to the time lost by reason of
            the excused default, delay or failure to perform.

   IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement on
the dates indicated below.

UNIVERSITY OF FLORIDA RESEARCH FOUNDATION, INC.

 /s/ David L. Day                           Date: September 2, 2004
------------------                                -----------
David L. Day
Director, Office of Technology Transfer

CRITICAL THERAPEUTICS, INC.

 /s/ Paul Rubin                             Date: September 2, 2004
------------------                                -----------
Paul Rubin
President and Chief Executive Officer

Reviewed by UFRF's Attorney:                    Reviewed by CTI's Attorney

                                                /s/ Kirsten A. Anderson
-------------------------------------     --------------------------------------
          (name typed)                           Kirsten A. Anderson, Esq.
(Neither attorney shall be deemed a
  signatory to this Agreement.)

UFRF Ref: UF #-1471

                                    Page 16
<PAGE>

                                   APPENDIX A
                                DEVELOPMENT PLAN

   A development plan of the scope outlined below shall be submitted to UFRF by
CTI prior to the execution of this agreement. In general, the plan should
provide UFRF with a summary overview of the activities that CTI believes are
necessary to bring products to the marketplace.

I.    Drug Discovery Program

      Overall the goal of this program is to identify an alpha 7 agonistic
      cinnamylidine anabaseine analog with the potential to ultimately make it
      to market as a therapeutic for severe, life-threatening, systemic
      inflammation. Additionally, the therapeutic potential for such a molecule
      being used to treat chronic inflammatory disease will be evaluated.

      A.    Discovery activities to be undertaken

            1.    [**]

            2.    [**]

            3.    [**]

            4.    Use [**]

            5.    If applicable[**]

            6.    If applicable, [**]

            7.    If the data indicates, [**]

      B.    Estimated total discovery time

            1.    From the agreement initiation date [**]

            2.    At that time [**]

II.   [**]

                                    Page 17
<PAGE>

                                   APPENDIX B
                               DEVELOPMENT REPORT

When appropriate, indicate estimated start date and finish date for activities.

I.    Date Development Plan Initiated and Time Period Covered by this Report.

II.   [**]

      A.    [**]

      B.    [**]

III.  [**]

      A.    [**] including, but not limited to, [**].

      B.    Estimated [**].

IV.   [**]

      A.    [**]

      B.    [**]

V.    [**] if Applicable:

      A.    [**]

      B.    [**]

      C.    [**]

PLEASE SEND DEVELOPMENT REPORTS TO:

   University of Florida Research Foundation, Inc.
   Attn: Director
   308 Walker Hall
   P.O. Box 115500
   Gainesville, FL 32611-5500
   Facsimile: 352-392-6600

                                    Page 18
<PAGE>

                                   APPENDIX C
                               UFRF ROYALTY REPORT

        CTI:_________________________________      AGREEMENT NO.:_______________

        INVENTOR:____________________________      P#: P________________________

        PERIOD COVERED: From:_______/____/2__      Through:________/________/2__

        PREPARED BY__________________________      DATE:________________________

        APPROVED BY:_________________________      DATE:________________________

         If license covers several major product lines, please prepare a
      separate report for each line. Then combine all product lines into a
                                 summary report.

      REPORT TYPE:  [ ]  SINGLE PRODUCT LINE REPORT:____________________________

                    [ ]  MULTIPRODUCT SUMMARY REPORT. Page 1 of ______ Pages____

                    [ ]  PRODUCT LINE DETAIL. Line:_______ Tradename:___________
                         Page:_________

REPORT CURRENCY:    [ ]  U. S. DOLLARS  [ ]  OTHER _____________________________

                                                                       [**]

        [**]     [**]     [**]      [**]      [**]      [**]      [**]      [**]
   [**]
   [**]
   [**]

   [**]
   [**]

   TOTAL:

Total Royalty:_______________ Conversion Rate:____________ Royalty in U.S.
Dollars: $ _______

 The following royalty forecast is non-binding and for UFRF's internal planning
                                 purposes only:

Royalty Forecast Under This Agreement: Next Quarter:__________ Q2:__________
Q3:__________ Q4:__________

     * On a separate page, please indicate the reasons for returns or other
                          adjustments if significant.
        Also note any unusual occurrences that affected royalty amounts
                              during this period.
    To assist UFRF's forecasting, please comment on any significant expected
                            trends in sales volume.

                                    Page 19<PAGE>

                                                                    Exhibit 10.2

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

                   PATHEON PROPOSAL # : CTI- FCO1-1100-0604-R1

<TABLE>
<S>                           <C>
1.  PARTIES:                  PATHEON PHARMACEUTICALS INC.   CRITICAL THERAPEUTICS INC.
                              ("PATHEON")
                              2110 East Galbraith Road       60 Westview St.
                              Cincinnati, Ohio 45237-1625    Lexington, MA 02421
                              USA                            USA

2.  PRODUCT:                  Zyflo Coated Tablets (600 mg)

3.  INDICATION:               Asthma

4.  CONTRACT:                 This Proposal (including the Project Scope, Budget
                              Summary, Standard Terms and Conditions for
                              Pharmaceutical Development Services ("Terms and
                              Conditions") when accepted by Client shall become
                              a contract binding on the parties ("Contract").

5.  DESCRIPTION OF SERVICE:   See Project Scope (Part A).

6.  PAYMENT AND CURRENCY:     See Budget Summary (Part B).

7.  LEGAL TERMS:              See Terms and Conditions (Part C).

8.  EFFECTIVE DATE:           July-19-2004

9.  TERM:                     From the Effective Date until completion by
                              Patheon of the pharmaceutical development services
                              ("Services").

10. CONFIDENTIALITY:          The Confidentiality Agreement entered into between
                              the parties shall apply to all confidential
                              information about the parties and the Services to
                              be conducted under this Contract and such
                              Confidentiality Agreement is deemed to be
                              incorporated herein by reference. If the
                              Confidentiality Agreement expires or terminates
                              prior to the expiration or termination of this
                              Contract, then the terms of the Confidentiality
                              Agreement shall nonetheless continue to govern the
                              parties' obligations of confidentiality for the
                              term of this Contract and for 5 years thereafter.
</TABLE>

    PATHEON INC.                               CRITICAL THERAPEUTICS INC.

    By:   /s/ Ronald B. Mitchell               By:    /s/ Trevor Phillips
          -------------------------------             --------------------------
    Name: Ronald B. Mitchell                   Name:  Trevor Phillips

    Title:                                     Title: COO
          -----------------------------

    Date: August 12, 2004                      Date: 8/4/04

                                  CONFIDENTIAL

<PAGE>

                                       Patheon Proposal # CTI- FCO1-1100-0604-R1
                                                                    July-19-2004

                                     PART A:

                                       FOR
                           CRITICAL THERAPEUTICS INC.

                      PROPOSAL NO.: CTI- FCO1-1100-0604-R1

                               DATED: JULY-19-2004

                                                      Critical Therapeutics Inc.

                                  CONFIDENTIAL

                                                                    Page 2 of 24
<PAGE>

                                       Patheon Proposal # CTI- FCO1-1100-0604-R1
                                                                    July-19-2004

                                TABLE OF CONTENTS

<TABLE>
<S>                                                                                                      <C>
1.    PROJECT SCOPE.................................................................................      4

2.    ENVIRONMENTAL, HEALTH AND SAFETY..............................................................      4

3.    ANALYTICAL DEVELOPMENT........................................................................      4

   3.1. Cleaning Residuals Assay (Method Evaluation and Validation).................................      5
   3.2. Drug Substance Potency by HPLC (Method Transfer)............................................      6
   3.3. Drug Substance Related Substances Assay by HPLC (Method  Transfer)..........................      6
   3.4. Drug Substance Residual Solvents Assay (Method Transfer)....................................      6
   3.5. Drug Product Potency Assay (Method Validation)..............................................      6
   3.6. Drug Product Related Substances and Impurities Assay by HPLC (Method Validation)............      7
   3.7. Drug Product Dissolution Assay by UV (Method Validation)....................................      7

4.    MICROBIOLOGY..................................................................................      7

5.    FEASIBILITY MANUFACTURING.....................................................................      8

6.    SCALE - UP / CONFIRMATION MANUFACTURING.......................................................      8

8.    STABILITY-REGISTRATION BATCHES................................................................      9

9.    VALIDATION....................................................................................     10

10.   STABILITY - VALIDATION BATCHES................................................................     11

12.   PROJECT MANAGEMENT............................................................................     12

HIGH LEVEL TIMELINE.................................................................................     13
</TABLE>

                                                      Critical Therapeutics Inc.

                                  CONFIDENTIAL

                                                                    Page 3 of 24
<PAGE>
                                       Patheon Proposal # CTI- FCO1-1100-0604-R1
                                                                    July-19-2004

1     PROJECT SCOPE

Patheon will perform manufacturing and analytical services in order to transfer
for Client. Analytical methods will be assessed to support the Technical
Transfer Program.

The Budget Summary for this Project Scope is presented in Part B.

Patheon will commence the Services described in this Project Scope following the
execution of the Contract by both parties.

2.    ENVIRONMENTAL, HEALTH AND SAFETY

Prior to the commencement of analytical method development and manufacturing
activities, a thorough review by Patheon of the Environmental, Health and Safety
(EH&S) requirements for Zileuton will be completed. The Budget Summary for this
Project Scope assumes that the EH&S review will determine that Zileuton can be
safely handled at Patheon. A summary report of the evaluation will be provided
to the Client.

If it is determined by Patheon's Environmental Health and Safety personnel that
any of the active ingredients are a Category III or Category IV compound (an
occupational exposure level) then an air sampling method will be required at
Client's expense prior to commercialization. Patheon reserves the right, in its
sole and absolute discretion, to conduct an air sampling method on Category I
and II compounds, at such price and upon such terms as may be mutually agreed to
between the parties prior to commercialization.

Patheon will not receive any active pharmaceutical ingredients (API) from the
Client until a MSDS has been received, Patheon has completed the categorization
of the API and that the Client has completed and returned the EH&S Survey to
Patheon.

3.    ANALYTICAL DEVELOPMENT

Patheon will perform the method evaluation and method validation work required
supporting the manufacture of the Zyflo Coated Tablets (600 mg). Analytical
protocols will be drafted by Patheon for validation activities only and
submitted to the Client for approval prior to execution with the exception of
the Cleaning

                                                      Critical Therapeutics Inc.

                                  CONFIDENTIAL

                                                                    Page 4 of 24
<PAGE>

                                       Patheon Proposal # CTI- FCO1-1100-0604-R1
                                                                    July-19-2004

Residuals Assay, which will be approved internally by Patheon. Upon completion
of the method evaluation activities, a summary of the data will be provided to
the Client. The analytical methods have been based upon HPLC unless otherwise
stated.

An analytical report will be provided to the Client once the method validation
is complete. If method validation is not specified in the title of an analytical
method under this Project Scope, then the validation of such analytical method
is not included in this Project Scope and the additional method validation costs
will be quoted separately by Patheon.

The Client shall provide Patheon with accurate, appropriate, sufficient and the
most current reference standards (the "Reference Standards") for the drug
substances and related substances to complete the scope of work outlined herein.
If the requisite Reference Standards such as USP, NF, BP, EP, and JP can be
readily obtained, then Patheon may purchase these Reference Standards on behalf
of the Client and the Client shall reimburse Patheon for such costs. If the
Client requires Patheon to obtain Reference Standards from sources other then
the ones listed in the preceding sentence, then the Client shall reimburse
Patheon for such cost [**]. However, under no circumstances shall Patheon be
liable for the Reference Standards, including without limitation, for their
accuracy, appropriateness, discrepancies, sufficiency or use.

3.1.  CLEANING RESIDUALS ASSAY (METHOD EVALUATION AND VALIDATION)

Patheon will evaluate and validate the test method required for testing cleaning
residuals in order to support the manufacturing program. The evaluation and
validation will challenge the following parameters:

-     System Suitability

-     Linearity

-     Quantitation Limit

-     Detection Limit

-     Accuracy

-     Range

-     Precision

-     Robustness

-     Specificity

-     Solution Stability

                                                      Critical Therapeutics Inc.

                                  CONFIDENTIAL

                                                                    Page 5 of 24
<PAGE>

                                       Patheon Proposal # CTI- FCO1-1100-0604-R1
                                                                    July-19-2004

3.2.  DRUG SUBSTANCE POTENCY BY HPLC (METHOD TRANSFER)

Patheon will transfer the test method required for drug Substance potency assay
in order to support the Technical Transfer Program. The method transfer will
challenge the following parameters:

-     System Suitability

-     Linearity

-     Solution Stability

-     Repeatability

-     Quantitation Limit

-     Detection Limit

3.3.  DRUG SUBSTANCE RELATED SUBSTANCES ASSAY BY HPLC (METHOD TRANSFER)

Patheon will transfer the test method required for drug product related
substances assay in order to support the Techical Transfer Program. The method
transfer will challenge the following parameters:

-     System Suitability

-     Linearity

-     Solution Stability

-     Repeatability

-     Quantitation Limit

-     Detection Limit

3.4.  DRUG SUBSTANCE RESIDUAL SOLVENTS ASSAY (METHOD TRANSFER)

Patheon will transfer the test method required for drug product residual solvent
assay in order to support the Techical Transfer Program. The method transfer
will challenge the following parameters:

-     System Suitability

-     Linearity

-     Solution Stability

-     Repeatability

-     Quantitation Limit

-     Detection Limit

3.5.  DRUG PRODUCT POTENCY ASSAY (METHOD VALIDATION)

Patheon will transfer and validate the test method required for drug product
Potency assay in order to support the Techical Transfer Program. The method
transfer and validation will challenge the following parameters:

                                                      Critical Therapeutics Inc.

                                  CONFIDENTIAL

                                                                    Page 6 of 24
<PAGE>

                                       Patheon Proposal # CTI- FCO1-1100-0604-R1
                                                                    July-19-2004

-     System Suitability

-     Linearity

-     Specificity

-     Range

-     Accuracy

-     Precision

-     Robustness

-     Quantitation Limit

-     Detection Limit

-     Content Uniformity by HPLC

-     ID retention time

3.6.  DRUG PRODUCT RELATED SUBSTANCES AND IMPURITIES ASSAY BY HPLC (METHOD
      VALIDATION)

Patheon will transfer and validate the test method required for drug product
Related Substances assay in order to support the Techical Transfer Program. The
method transfer and validation will challenge the following parameters:

-     System Suitability

-     Linearity

-     Specificity

-     Range

-     Accuracy

-     Precision

-     Robustness

-     Quantitation Limit

-     Detection Limit

-     Content Uniformity by HPLC

-     ID retention time

3.7.  DRUG PRODUCT DISSOLUTION ASSAY BY UV (METHOD VALIDATION)

Patheon will transfer and validate the test method required for drug product
dissolution assay in order to support the Techical Transfer Program. The method
transfer and validation will challenge the following parameters:

-     System Suitability

-     Linearity

-     Specificity

-     Range

-     Accuracy

-     Precision

-     Robustness

-     Moisture by KF

4.    MICROBIOLOGY

Patheon will validate the test methods required for Microbial Limit Tests (MLT)
in order to support the Techical Transfer Program.

The cost allocated to this Service in the Budget Summary of Part B is the per
sample price and will vary depending on the number of samples required for
method validation. If a worst case scenario approach were taken, the cost would

                                                      Critical Therapeutics Inc.

                                  CONFIDENTIAL

                                                                    Page 7 of 24
<PAGE>

                                       Patheon Proposal # CTI- FCO1-1100-0604-R1
                                                                    July-19-2004

be based upon testing MLT at two dilutions and/or the usage of the largest
volume of diluent(s) based on specification. Testing will be done in compliance
with USP/NF. Client will be billed based on the actual number of samples
required in order to successfully validate Zyflo Coated Tablets (600 mg).

5.    FEASIBILITY MANUFACTURING

Patheon will manufacture [**] feasibility batches [**] of Zyflo Coated Tablets
(600 mg). These batches will undergo complete analytical release testing in
compliance with USP/NF requirements. Patheon will prepare a master batch record,
which will be provided to the Client for approval prior to manufacturing, that
specifies manufacturing procedures and acceptance criteria. These batches will
not undergo a full QA review and will be packaged as a trial run into blisters.

Feasibility Manufacturing Process Train [**]:

-     [**]

The following in-process and finished product testing is based upon one set of
analysis for each of the described tests. If additional sample testing is
required these will be considered as additional activities for which a separate
costing will be provided to the Client.

Blend Analysis:                           Tablet Analysis:

[**]                                      -    [**]

6.    SCALE - UP / CONFIRMATION MANUFACTURING

Patheon will manufacture [**] Scale - up & [**] confirmation batch [**] of Zyflo
Coated Tablets (600 mg). These batches will undergo complete analytical release
testing in compliance with USP/NF requirements. Patheon will prepare a master
batch record, which will be provided to the Client for approval prior to
manufacturing, that specifies manufacturing procedures and acceptance criteria.

[**]:

-     [**]

                                                      Critical Therapeutics Inc.

                                  CONFIDENTIAL

                                                                    Page 8 of 24
<PAGE>

                                       Patheon Proposal # CTI- FCO1-1100-0604-R1
                                                                    July-19-2004

The following in-process and finished product testing is based upon one set of
analysis for each of the described tests. If additional sample testing is
required these will be considered as additional activities for which a separate
costing will be provided to the Client.

Blend Analysis:                              Tablet Analysis:

[**]                                         -   [**]

7.    REGISTRATION MANUFACTURING

Patheon will manufacture three registration batches [**] of Zyflo Coated Tablets
(600 mg). These batches will undergo complete analytical release testing in
compliance with USP/NF requirements. Patheon will prepare a master batch record,
which will be provided to the Client for approval prior to manufacturing, that
specifies manufacturing procedures and acceptance criteria.

Registration Manufacturing Process Train [**]

-     [**]

The following in-process and finished product testing is based upon one set of
analysis for each of the described tests. If additional sample testing is
required these will be considered as additional activities for which a separate
costing will be provided to the Client.

Blend Analysis:                              Tablet Analysis:

[**]                                         -   [**]

8.    STABILITY-REGISTRATION BATCHES

Patheon shall design a stability program to monitor [**] packaged lots of Zyflo
Coated Tablets (600 mg) under ICH conditions.; i.e., [**].

Additional samples will be stored as contingency samples if required to generate
data for long-term stability of the product.

The following storage conditions and test-points are suggested for testing:

                                                      Critical Therapeutics Inc.

                                  CONFIDENTIAL

                                                                    Page 9 of 24
<PAGE>

                                       Patheon Proposal # CTI- FCO1-1100-0604-R1
                                                                    July-19-2004

-     [**]

[**]

The analytical data used for the release of each lot manufactured at Patheon
will be considered as [**].

Cost efficiencies for analytical testing have been built into the stability
program based upon the [**] in a given month. The cost for this stability
program assumes that all lots will be placed on stability at the same time. If
these lots are not placed on stability at the same time, the cost will be
adjusted accordingly through Change of Scope Agreement.

[**]                  [**]   [**]    [**]   [**]   [**]    [**]   [**]   [**]
[**]                  [**]   [**]    [**]   [**]   [**]    [**]   [**]   [**]

Therefore, the stability sample breakdown is:

-     [**]

The following standard tests are usually performed as part of the Stability
Program:

-     Potency & Related Substances

-     Physical Appearance and Moisture

-     MLT (annually)

-     Dissolution (Profile)

9.    VALIDATION

Patheon shall complete validation activities on [**] validation batches of Zyflo
Coated Tablets (600 mg). Patheon will prepare protocols for the Master
Validation plan, processing validation, packaging validation and cleaning
validation and bulk hold time study. These protocols will be supplied to and
approved by the Client before execution.

The scope and the degree of the validation will be discussed and approved by the
Client before proceeding. Since the final validation approach has not been
defined, a typical costing has been given below for review. A final budget cost
will be proposed to the Client once a validation protocol has been agreed upon.

                                                      Critical Therapeutics Inc.

                                  CONFIDENTIAL

                                                                   Page 10 of 24
<PAGE>

                                       Patheon Proposal # CTI- FCO1-1100-0604-R1
                                                                    July-19-2004

The validation costs listed in this proposal are for the validation of [**]
commercial batches; manufacturing costs for the registration / validation
batches are additional and will be based on commercial rates.

10.   STABILITY - VALIDATION BATCHES

Patheon shall design a stability program to monitor [**] packaged lots of Zyflo
Coated Tablets (600 mg) under ICH conditions.; i.e., [**].

Additional samples will be stored as contingency samples if required to generate
data for long-term stability of the product.

The following storage conditions and test-points are suggested for testing:

-     [**]

[**]

The analytical data used for the release of each lot manufactured at Patheon
will be considered as [**].

Cost efficiencies for analytical testing have been built into the stability
program based upon the [**] in a given month. The cost for this stability
program assumes that all lots will be placed on stability at the same time. If
these lots are not placed on stability at the same time, the cost will be
adjusted accordingly through Change of Scope Agreement.

[**]                  [**]   [**]    [**]   [**]   [**]    [**]   [**]   [**]
[**]                  [**]   [**]    [**]   [**]   [**]    [**]   [**]   [**]

Therefore, the stability sample breakdown is:

-     [**]

The following standard tests are usually performed as part of the Stability
Program:

-     Potency & Related Substances

-     Physical Appearance and Moisture

-     MLT (annually)

-     Dissolution (Profile)

                                                      Critical Therapeutics Inc.

                                  CONFIDENTIAL

                                                                   Page 11 of 24
<PAGE>

                                       Patheon Proposal # CTI- FCO1-1100-0604-R1
                                                                    July-19-2004

12.   PROJECT MANAGEMENT

Patheon will provide project management support to monitor the progress of the
project against established timelines and will provide the Client with frequent
updates. The project manager will coordinate regular biweekly teleconference
meetings and quarterly face-to-face meetings. The fee for project management is
[**] in the Budget Summary.

                                                      Critical Therapeutics Inc.

                                  CONFIDENTIAL

                                                                   Page 12 of 24
<PAGE>

                                       Patheon Proposal # CTI- FCO1-1100-0604-R1
                                                                    July-19-2004

HIGH LEVEL TIMELINE

The attached High Level Timeline is presented at this stage as a projected
estimate of the duration and achievable milestones, based upon Patheon's
experience and history. The High Level Timeline should not be taken as part of
an agreed legal deliverable of this proposal.

Once the project has been awarded to Patheon and the relevant legal
documentation is in place, a revised Timeline detailing set milestones and
duration of deliverables will be agreed upon between Patheon and the Client. The
revised Timeline would likely have a similar duration and would be based upon
resources and the availability of manufacturing time at the initiation of the
project.

                                                      Critical Therapeutics Inc.

                                  CONFIDENTIAL

                                                                   Page 13 of 24
<PAGE>

                                       Patheon Proposal # CTI- FCO1-1100-0604-R1
                                                                    July-19-2004

<TABLE>
<CAPTION>
REF
NUM        TASK                                               %     Dur.    Start   Finish    Dates
------     ----------------------------------------------    ----   ----    -----   ------    -----
<S>        <C>                                               <C>    <C>     <C>     <C>       <C>
1          CRITICAL THERAPEUTICS - ZYFLO COATED TABLET       [**]   [**]    [**]     [**]      [**]
2             Proposal Approval                              [**]   [**]    [**]     [**]      [**]
3          ENVIRONMENTAL, HEALTH AND SAFETY ASSESSMENT       [**]   [**]    [**]     [**]      [**]
4             EH&S Assessment                                [**]   [**]    [**]     [**]      [**]
5             Explosivity Testing                            [**]   [**]    [**]     [**]      [**]
6          CLEANING RESIDUALS ASSAY                          [**]   [**]    [**]     [**]      [**]
7             Protocol Generation/Approval                   [**]   [**]    [**]     [**]      [**]
8             Benchwork                                      [**]   [**]    [**]     [**]      [**]
9             Method Generation/Approval                     [**]   [**]    [**]     [**]      [**]
10            Report Generation/Approval                     [**]   [**]    [**]     [**]      [**]
11            Cleaning Residual Assay - Total Budget         [**]   [**]    [**]     [**]      [**]
12         DRUG SUBSTANCES POTENCY ASSAY                     [**]   [**]    [**]     [**]      [**]
13            Protocol Generation/Approval                   [**]   [**]    [**]     [**]      [**]
14            Benchwork                                      [**]   [**]    [**]     [**]      [**]
15            Method Generation/Approval                     [**]   [**]    [**]     [**]      [**]
16            Report Generation/Approval                     [**]   [**]    [**]     [**]      [**]
17            Drug Substances Potency Assay - Total          [**]   [**]    [**]     [**]      [**]
18         DRUG SUBSTANCES RELATED SUBSTANCES ASSAY          [**]   [**]    [**]     [**]      [**]
19            Protocol Generation/Approval                   [**]   [**]    [**]     [**]      [**]
20            Benchwork                                      [**]   [**]    [**]     [**]      [**]
21            Method Generation/Approval                     [**]   [**]    [**]     [**]      [**]
22            Report Generation/Approval                     [**]   [**]    [**]     [**]      [**]
23            Drug Substances Related Substances             [**]   [**]    [**]     [**]      [**]
24         DRUG SUBSTANCES RESIDUAL SOLVENTS ASSAY           [**]   [**]    [**]     [**]      [**]
25            Protocol Generation/Approval                   [**]   [**]    [**]     [**]      [**]
26            Benchwork                                      [**]   [**]    [**]     [**]      [**]
27            Method Generation/Approval                     [**]   [**]    [**]     [**]      [**]
28            Report Generation/Approval                     [**]   [**]    [**]     [**]      [**]
29            Drug Substances Related Substances             [**]   [**]    [**]     [**]      [**]
30         DRUG PRODUCT POTENCY ASSAY                        [**]   [**]    [**]     [**]      [**]
31            Protocol Generation/Approval                   [**]   [**]    [**]     [**]      [**]
32            Benchwork                                      [**]   [**]    [**]     [**]      [**]
33            Method Generation/Approval                     [**]   [**]    [**]     [**]      [**]
34            Report Generation/Approval                     [**]   [**]    [**]     [**]      [**]
35            Drug Product Potency and Related Substances    [**]   [**]    [**]     [**]      [**]
</TABLE>

                                                      Critical Therapeutics Inc.

                                  CONFIDENTIAL

                                                                   Page 14 of 24
<PAGE>

                                       Patheon Proposal # CTI- FCO1-1100-0604-R1
                                                                    July-19-2004

<TABLE>
<S>        <C>                                               <C>    <C>     <C>      <C>       <C>
36         DRUG PRODUCT RELATED SUBSTANCES ASSAY             [**]   [**]    [**]     [**]      [**]
37            Protocol Generation/Approval                   [**]   [**]    [**]     [**]      [**]
38            Benchwork                                      [**]   [**]    [**]     [**]      [**]
39            Method Generation/Approval                     [**]   [**]    [**]     [**]      [**]
40            Report Generation/Approval                     [**]   [**]    [**]     [**]      [**]
41            Drug Product Related Substances Assay          [**]   [**]    [**]     [**]      [**]
42         DRUG PRODUCT DISSOLUTION ASSAY                    [**]   [**]    [**]     [**]      [**]
43            Protocol Generation/Approval                   [**]   [**]    [**]     [**]      [**]
44            Benchwork                                      [**]   [**]    [**]     [**]      [**]
45            Method Generation/Approval                     [**]   [**]    [**]     [**]      [**]
46            Report Generation/Approval                     [**]   [**]    [**]     [**]      [**]
47            Drug Product Dissolution Assay - Total         [**]   [**]    [**]     [**]      [**]
48         MICROBIOLOGY                                      [**]   [**]    [**]     [**]      [**]
49            Micro Validation (Per Product/Raw Material)    [**]   [**]    [**]     [**]      [**]
50         FEASIBILITY MANUFACTURING                         [**]   [**]    [**]     [**]      [**]
51            Batch Record Generation                        [**]   [**]    [**]     [**]      [**]
52            Manufacturing                                  [**]   [**]    [**]     [**]      [**]
53            Analytical Support and QA Review               [**]   [**]    [**]     [**]      [**]
54            Feasibility Manufacturing - Total Budget       [**]   [**]    [**]     [**]      [**]
55         SCALE UP/CONFIRMATION MANUFACTURING               [**]   [**]    [**]     [**]      [**]
56            Batch Record Generation                        [**]   [**]    [**]     [**]      [**]
57            Manufacturing                                  [**]   [**]    [**]     [**]      [**]
58            Bulk Packaging                                 [**]   [**]    [**]     [**]      [**]
59            Analytical Support and QA Review               [**]   [**]    [**]     [**]      [**]
60            Feasibility Manufacturing - Total Budget       [**]   [**]    [**]     [**]      [**]
61         REGISTRATION MANUFACTURING                        [**]   [**]    [**]     [**]      [**]
62            Batch Record Generation                        [**]   [**]    [**]     [**]      [**]
63            Manufacturing                                  [**]   [**]    [**]     [**]      [**]
64            Packaging                                      [**]   [**]    [**]     [**]      [**]
65            Analytical Support and QA Review               [**]   [**]    [**]     [**]      [**]
66            Registration Manufacturing - Total Budget      [**]   [**]    [**]     [**]      [**]
67         STABILITY - REGISTRATION                          [**]   [**]    [**]     [**]      [**]
68            T = Initial                                    [**]   [**]    [**]     [**]      [**]
69            T = 1 Month                                    [**]   [**]    [**]     [**]      [**]
70         VALIDATION                                        [**]   [**]    [**]     [**]      [**]
71            Master Validation Plan                         [**]   [**]    [**]     [**]      [**]
72            Processing Validation                          [**]   [**]    [**]     [**]      [**]
73            Packaging Validation                           [**]   [**]    [**]     [**]      [**]
74            Cleaning Validation                            [**]   [**]    [**]     [**]      [**]
75            Bulk Hold Time Study                           [**]   [**]    [**]     [**]      [**]
76            Validation - Total Budget                      [**]   [**]    [**]     [**]      [**]
77         STABILITY - VALIDATION                            [**]   [**]    [**]     [**]      [**]
78            T = Initial                                    [**]   [**]    [**]     [**]      [**]
</TABLE>

                                                      Critical Therapeutics Inc.

                                  CONFIDENTIAL

                                                                   Page 15 of 24
<PAGE>

                                       Patheon Proposal # CTI- FCO1-1100-0604-R1
                                                                    July-19-2004

<TABLE>
<S>           <C>                                            <C>    <C>     <C>      <C>       <C>
79            T = 1 Month                                    [**]   [**]    [**]     [**]      [**]

</TABLE>

                                                      Critical Therapeutics Inc.

                                  CONFIDENTIAL

                                                                   Page 16 of 24
<PAGE>

                                        Patheon Proposal # CTI-FCO1-1100-0604-R1

<TABLE>
<CAPTION>
REF
NUM        TASK                                                      DATE
------     ----------------------------------------------            ----
<S>        <C>                                                       <C>
1          CRITICAL THERAPEUTICS - ZYFLO COATED TABLET               [**]
2             Proposal Approval                                      [**]
3          ENVIRONMENTAL, HEALTH AND SAFETY ASSESSMENT               [**]
4             EH&S Assessment                                        [**]
5             Explosivity Testing                                    [**]
6          CLEANING RESIDUALS ASSAY                                  [**]
7             Protocol Generation/Approval                           [**]
8             Benchwork                                              [**]
9             Method Generation/Approval                             [**]
10            Report Generation/Approval                             [**]
11            Cleaning Residual Assay - Total Budget                 [**]
12         DRUG SUBSTANCES POTENCY ASSAY                             [**]
13            Protocol Generation/Approval                           [**]
14            Benchwork                                              [**]
15            Method Generation/Approval                             [**]
16            Report Generation/Approval                             [**]
17            Drug Substances Potency Assay - Total                  [**]
18         DRUG SUBSTANCES RELATED SUBSTANCES ASSAY                  [**]
19            Protocol Generation/Approval                           [**]
20            Benchwork                                              [**]
21            Method Generation/Approval                             [**]
22            Report Generation/Approval                             [**]
23            Drug Substances Related Substances                     [**]
24         DRUG SUBSTANCES RESIDUAL SOLVENTS ASSAY                   [**]
25            Protocol Generation/Approval                           [**]
26            Benchwork                                              [**]
27            Method Generation/Approval                             [**]
28            Report Generation/Approval                             [**]
29            Drug Substances Related Substances                     [**]
30         DRUG PRODUCT POTENCY ASSAY                                [**]
31            Protocol Generation/Approval                           [**]
32            Benchwork                                              [**]
33            Method Generation/Approval                             [**]
34            Report Generation/Approval                             [**]
35            Drug Product Potency and Related Substances            [**]
36         DRUG PRODUCT RELATED SUBSTANCES ASSAY                     [**]
37            Protocol Generation/Approval                           [**]
38            Benchwork                                              [**]
39            Method Generation/Approval                             [**]
40            Report Generation/Approval                             [**]
41            Drug Product Related Substances Assay                  [**]
42         DRUG PRODUCT DISSOLUTION ASSAY                            [**]
43            Protocol Generation/Approval                           [**]
44            Benchwork                                              [**]
45            Method Generation/Approval                             [**]
</TABLE>

                                  CONFIDENTIAL

                                                                   Page 17 of 24
<PAGE>

                                        Patheon Proposal # CTI-FCO1-1100-0604-R1

<TABLE>
<S>        <C>                                                       <C>
46            Report Generation/Approval                             [**]
47            Drug Product Dissolution Assay - Total                 [**]
48         MICROBIOLOGY                                              [**]
49            Micro Validation (Per Product/Raw Material)            [**]
50         FEASIBILITY MANUFACTURING                                 [**]
51            Batch Record Generation                                [**]
52            Manufacturing                                          [**]
53            Analytical Support and QA Review                       [**]
54            Feasibility Manufacturing - Total Budget               [**]
55         SCALE UP/CONFIRMATION MANUFACTURING                       [**]
56            Batch Record Generation                                [**]
57            Manufacturing                                          [**]
58            Bulk Packaging                                         [**]
59            Analytical Support and QA Review                       [**]
60            Feasibility Manufacturing - Total Budget               [**]
61         REGISTRATION MANUFACTURING                                [**]
62            Batch Record Generation                                [**]
63            Manufacturing                                          [**]
64            Packaging                                              [**]
65            Analytical Support and QA Review                       [**]
66            Registration Manufacturing - Total Budget              [**]
67         STABILITY - REGISTRATION                                  [**]
68            T = Initial                                            [**]
69            T = 1 Month                                            [**]
70         VALIDATION                                                [**]
71            Master Validation Plan                                 [**]
72            Processing Validation                                  [**]
73            Packaging Validation                                   [**]
74            Cleaning Validation                                    [**]
75            Bulk Hold Time Study                                   [**]
76            Validation - Total Budget                              [**]
77         STABILITY - VALIDATION                                    [**]
78            T = Initial                                            [**]
79            T = 1 Month                                            [**]
</TABLE>

                                  CONFIDENTIAL

                                                                   Page 18 of 24
<PAGE>

                                        Patheon Proposal # CTI-FCO1-1100-0604-R1

      PART B: BUDGET SUMMARY

THE FOLLOWING COSTS ARE ALL QUOTED IN: USD

ALL AMOUNTS QUOTED ARE VALID FOR SIXTY (60) DAYS FROM THE DATE OF THIS PROPOSAL.

2.0 ENVIRONMENTAL HEALTH AND SAFETY                                  USD

<TABLE>
<CAPTION>
ACTIVITY                                                                 PRICE
<S>                                                                      <C>
EH&S Assessment                                                          $ [**]
Explosivity Testing                                                      $ [**]
</TABLE>

3.0 ANALYTICAL DEVELOPMENT                                           USD

<TABLE>
<CAPTION>
ACTIVITY                                                                       HOURS      PRICE      HOURS          PRICE
<S>                                                                            <C>        <C>        <C>            <C>
3.1 CLEANING RESIDUALS ASSAY (METHOD EVALUATION AND VALIDATION)                [**]       [**]       [**]           [**]
      Protocol/benchwork
      Final Report

3.2  DRUG SUBSTANCE POTENCY ASSAY BY HPLC (METHOD TRANSFER)                    [**]       [**]       [**]           [**]
      Protocol/benchwork
      Final Report

3.3  DRUG SUBSTANCE RELATED SUBSTANCES ASSAY BY HPLC (METHOD TRANSFER)         [**]       [**]       [**]           [**]
      Protocol/benchwork
      Final Report

3.4  DRUG SUBSTANCE RESIDUAL SOLVENT ASSAY BY HPLC (METHOD TRANSFER)           [**]       [**]       [**]           [**]
      Protocol/benchwork
      Final Report

3.5  DRUG PRODUCT POTENCY ASSAY (METHOD VALIDATION)                            [**]       [**]       [**]           [**]
      Protocol/benchwork
      Final Report

3.6  DRUG PRODUCT RELATED SUBSTANCES ASSAY (METHOD TRANSFER)                   [**]       [**]       [**]           [**]
      Protocol/benchwork
      Final Report

3.7  DRUG PRODUCT DISSOLUTION ASSAY BY UV (METHOD VALIDATION)                  [**]       [**]       [**]           [**]
      Protocol/benchwork
      Final Report

      TOTAL (ANALYTICAL DEVELOPMENT)                                                                 [**]           [**]
</TABLE>

4.0  MICROBIOLOGY DEVELOPMENT AND VALIDATION                         USD

<TABLE>
<CAPTION>
ACTIVITY                                                                       HOURS      PRICE      HOURS          PRICE
<S>                                                                            <C>        <C>        <C>            <C>
PREPARATION                                                                    [**]       [**]
[**]                                                                           [**]       [**]
TOTAL (MICRO DEVELOPMENT AND VALIDATION) - NUMBER OF TRIALS ASSUMED =          [**]       [**]       [**]           [**]
[**]
</TABLE>

                                  CONFIDENTIAL

                                                                   Page 19 of 24
<PAGE>

                                        Patheon Proposal # CTI-FCO1-1100-0604-R1

5.0  FEASIBILITY MANUFACTURING                                       USD

<TABLE>
<CAPTION>
      ACTIVITY                                      SHIFTS       HOURS           PRICE      SHIFTS         HOURS          PRICE
<S>                                                 <C>          <C>             <C>        <C>            <C>            <C>
PER BATCH:    Manufacturing                         [**]         [**]            [**]
              Packaging Trial run
              Analytical Support
              Project Support
              TOTAL ([**] BATCHES - FEASIBILITY MANUFACTURING)                              [**]           [**]           [**]
</TABLE>

6.0  SCALE-UP/CONFIRMATION MANUFACTURING                             USD

<TABLE>
<CAPTION>
      ACTIVITY                                      SHIFTS       HOURS           PRICE      SHIFTS         HOURS          PRICE
<S>                                                 <C>          <C>             <C>        <C>            <C>            <C>
PER BATCH:    Manufacturing                         [**]         [**]            [**]
              Bulk Packaging
              Analytical Support
              Project Support
              TOTAL ([**] SCALE-UP & [**] CONFIRMATION BATCH - MANUFACTURING)               [**]           [**]           [**]
</TABLE>

7.0  REGISTRATION MANUFACTURING                                      USD

<TABLE>
<CAPTION>

      ACTIVITY                                      SHIFTS       HOURS           PRICE      SHIFTS         SHIFTS         PRICE
<S>                                                 <C>          <C>             <C>        <C>            <C>            <C>
PER BATCH:    Manufacturing                         [**]         [**]            [**]
              Packaging
              Analytical Support
              Project Support

[**]                                                [**]         [**]            [**]
              TOTAL (REGISTRATION MANUFACTURING)                                            [**]           [**]           [**]
</TABLE>

8.0  STABILITY - REGISTRATION                                        USD

<TABLE>
<CAPTION>
      ACTIVITY                                                                       HOURS      PRICE          HOURS      PRICE
<S>                                                              <C>                 <C>        <C>            <C>        <C>
    Number of Lots                                                                   [**]       [**]
    Total Samples
[**]                                                             [**]                [**]       [**]
    TOTAL (STABILITY)                                                                                          [**]       [**]
</TABLE>

9.0  VALIDATION                                                      USD

<TABLE>
<CAPTION>
ACTIVITY                                                                       HOURS      PRICE          HOURS      PRICE
<S>                                                                            <C>        <C>            <C>        <C>
  Master Validation Plan                                                       [**]       [**]
  Processing Validation
  Packaging Validation
  Cleaning validation
  Bulk Hold Time Study
  Air Sampling Monitoring
  Equipment IQ/OQ/PQ

  TOTAL (VALIDATION)                                                           [**]       [**]
</TABLE>

                                  CONFIDENTIAL

                                                                   Page 20 of 24
<PAGE>

                                        Patheon Proposal # CTI-FCO1-1100-0604-R1

10.0  STABILITY - VALIDATION                                         USD

<TABLE>
<CAPTION>
  ACTIVITY                                                                  HOURS      PRICE          HOURS      PRICE
<S>                                                                                    <C>            <C>        <C>
   Number of Lots                                                           [**]       [**]
   Total Samples
 [**]
   TOTAL (STABILITY - VALIDATION)                                                                     [**]       [**]
BUDGET TOTAL (LOW POTENCY, CAT. 1 & 2)                                                                USD        [**]
DEPOSIT                                                                                                          [**]
</TABLE>

*The manufacturing cost given in this proposal is based upon the assumption that
the drug substance is classified as a Category 1 or 2 material in accordance
with Patheon's Categorization System. If it is determined through Patheon's
Environmental Health and Safety Review that the drug substance is not
categorized as a Category 3, the manufacturing cost will be revised through a
Change of Scope to reflect handling charges for a Category 1, 2 or 4 product.

                                  CONFIDENTIAL

                                                                   Page 21 of 24
<PAGE>

                                        Patheon Proposal # CTI-FCO1-1100-0604-R1

                                     PART C:
                          STANDARD TERMS AND CONDITIONS
                     FOR PHARMACEUTICAL DEVELOPMENT SERVICES

1.    SERVICES:

      (a)   Patheon agrees to perform the pharmaceutical development services
            described in the Project Scope (as described in Part A)
            ("Services").

      (b)   Parties must agree on changes, deletions or additions to the
            Services ("Changes").

      (c)   Minor Changes shall be confirmed by electronic mail, facsimile or
            other written document. Significant Changes (such as a request by
            the Client to change the Project Scope) shall be confirmed by a
            Change of Scope Agreement.

      (d)   The Services shall be performed in accordance with the [**] and
            according to the [**] as of the signing of this Agreement.

2.    PAYMENT:

      A.    PAYMENT

            (a)   Client shall pay Patheon for the Services as outlined in this
                  Contract and for any Changes which shall be invoiced
                  separately at Patheon's then prevailing hourly rates.

            (b)   The costs of all third party suppliers' fees and the purchase
                  of project specific items (such as special equipment, change
                  parts, laboratory columns and reagents and tooling) ("Project
                  Specific Items") necessary for Patheon to perform the Services
                  shall be charged separately to Client, [**] and the [**].

            (c)   If Client causes any delay to Patheon's provision of Services
                  for reason within its control (such as a delay in responding
                  to a Patheon inquiry or a delay in the delivery of the active
                  pharmaceutical ingredient ("API")), then Patheon shall be
                  entitled to charge the Client for any reasonable additional
                  costs incurred in the provision of the Services as a result of
                  the delay.

            (d)   Each Patheon invoice shall be due and payable within 30 days
                  of the date of such invoice.

3.    SUPPLY OF API AND MATERIALS:

      (a)   Client shall, at its expense, supply Patheon with sufficient
            quantities of the API for Patheon's use in performing the Services.

      (b)   Other than Project Specific Items, all other materials (such as
            excipients, packaging and raw materials) required to perform the
            Services shall be purchased by Patheon and charged to Client [**].

      (c)   If applicable, Patheon and the Client will cooperate and provide
            such assistance to each other as may be reasonably necessary to
            permit the import of the API and other materials into the country
            where the Services will be performed.

4.    TERMINATION:

      (a)   Either party may terminate this Contract if the other party is in
            material breach of any provisions of this Contract and the other
            party fails to remedy such breach within 30 days of the date of
            notice of such breach by the non-breaching party.

      (b)   Client may terminate this Contract immediately for any reason.

      (c)   Any re-scheduling resulting in a delay in Patheon's ability to
            provide any part of the Services beyond 120 days requested by Client
            shall, at Patheon's option, be deemed to be a termination of the
            Contract.

      (d)   If the Client terminates the Contract pursuant to Section 4(b) or if
            Patheon terminates the Contract because of: (i) Client's failure to
            cure any default within the 30 day notice period; or (ii) Client
            rescheduling any part of the Services beyond the 120 days, then
            Client shall pay to Patheon:

            -     any fees and expenses due to Patheon for the Services rendered
                  up to the date of termination;

            -     all actual costs incurred by Patheon to complete activities
                  associated with the termination and close of the Services
                  rendered up to the date of termination; and

            -     any additional costs incurred by Patheon in connection with
                  the Services that are required to fulfill applicable
                  regulatory and contractual requirements.

      (e)   Client shall arrange for the pickup from the Patheon site of all
            materials and supplies owned by Client within [**] business days
            after the earlier of the termination or expiration of this Contract.
            Patheon shall charge a [**] storage fee for all materials and
            supplies stored at the Patheon site after the [**] business day
            following the termination of the Contract.

5.    INTELLECTUAL PROPERTY:

      (a)   The term "Intellectual Property" includes, without limitation,
            rights in patents, patent applications, formulae, trade-marks,
            trade-mark applications, trade-names, trade secrets, inventions,
            copyright, industrial designs and know-how.

      (b)   For the term of this Contract, Client hereby grants to Patheon, a
            non-exclusive, paid-up, royalty-free, non-transferable license of
            any of Client's Intellectual Property that Patheon must use in order
            to perform the Services.

      (c)   All Intellectual Property generated or derived by Patheon in the
            course of performing the Services, to the extent it is specific to
            the development, manufacture, use and/or sale of the Client's
            Product that is the subject of the Services shall be the exclusive
            property of Client.

      (d)   All Intellectual Property generated or derived by Patheon in the
            course of performing the Services which have general application to
            manufacturing processes or formulation development of drug products
            or drug delivery systems shall be the exclusive property of Patheon;
            provided, however, the [**] Intellectual Property [**].

      (e)   The parties agree to execute, verify and deliver such documents and
            perform such other acts (including appearances as a witness) as the
            other party may reasonably request for use in applying for,
            obtaining, perfecting, evidencing, sustaining and enforcing such
            Intellectual Property rights and the assignment thereof.

6.    INDEMNITY:

      A.    INDEMNIFICATION BY CLIENT

      Subject to Sections 6B and 6C(c), Client shall defend, indemnify and hold
      Patheon, its affiliates and their respective directors, officers,
      employees and agents (collectively, "Patheon Indemnitees") harmless from
      and against any and all third-party actions, causes of action, costs
      (including reasonable legal fees), claims, damages, liabilities and
      expenses (collectively, "Losses") relating to or arising from:

                                  CONFIDENTIAL

                                                                   Page 22 of 24
<PAGE>

                                        Patheon Proposal # CTI-FCO1-1100-0604-R1

      -     any misrepresentation, negligence or willful misconduct by Client or
            any of its affiliates and their respective directors, officers,
            employees and agents (collectively, "Client Indemnitees");

      -     the performance of the Services in accordance with the terms of this
            Contract

      -     any breach by the Client of the Client's obligations or warranties
            under this Contract; or

      -     any claim of infringement or alleged infringement of any third
            party's intellectual property rights covering the Client's Product.

      This indemnity shall not apply to the extent that such Losses are:

      -     determined to have resulted from the negligence or willful
            misconduct of Patheon; or

      -     for which Patheon is obligated to indemnify the Client Indemnitees
            pursuant to Section 6B.

      B.    INDEMNIFICATION BY PATHEON

      Subject to Sections 6A and 6C(c), Patheon shall defend, indemnify and hold
      the Client Indemnitees harmless from and against any and all Losses
      resulting from, relating to or arising from the breach by Patheon of any
      of its obligations or warranties under this Contract except to the extent
      that such Losses are:

      -     determined to have resulted from the negligence or willful
            misconduct of Client; or

      -     for which Client is obligated to indemnify the Patheon Indemnitees
            pursuant to Section 6A.

      C.    LIMITATION OF LIABILITY

      (a)   If Patheon fails to materially perform any part of the Services in
            accordance with the terms of this Contract, then Client's sole
            remedy shall be to request Patheon to:

            -     repeat that part of the Service at Patheon's costs provided
                  that Client provides the API; or

            -     reimburse Client for the price for that part of the Service,
                  excluding the cost of the API.

      (b)   Under no circumstances whatsoever shall Patheon reimburse Client for
            the cost of the API unless the loss or damage to the API is as a
            result of Patheon's negligence, provided however that in no case
            shall Patheon liability for the loss of API exceed $400 USD/Kilo up
            to a maximum liability of $200,000 in aggregate in all circumstances

      (c)   Under no circumstances whatsoever shall either party be liable to
            the other in contract, tort, negligence, breach of statutory duty or
            otherwise for any loss of profits, of production, of anticipated
            savings, of business or goodwill or for any liabilities, damages,
            costs or expenses of any kind incurred by the other party of an
            indirect or consequential nature, regardless of any notice of the
            possibility of such damages.

      D.    NO WARRANTY

      PATHEON MAKES NO WARRANTY OF ANY KIND, EITHER EXPRESSED OR IMPLIED, BY
      FACT OR LAW, OTHER THAN THOSE EXPRESSLY SET FORTH IN THIS CONTRACT.
      PATHEON MAKES NO WARRANTY OF FITNESS FOR A PARTICULAR PURPOSE OR WARRANTY
      OF MERCHANTABILITY IN RESPECT OF THE CLIENT'S PRODUCT.

7.    FDA FILINGS:

      (a)   Client shall have the sole responsibility for filing of all
            documents with the United States Food and Drug Administration
            ("FDA"), and to take any other actions that may be required for the
            receipt of FDA Approval from the commercial manufacture of the
            Product; provided, however, [**] shall be [**] the information
            needed for [**] and shall be [**]. In general, [**] to obtain FDA
            Approval for the commercial manufacture of all Products as quickly
            as reasonably possible.

      (b)   At least [**] business days prior to filing any documents with the
            FDA that incorporate data generated by Patheon, Client shall provide
            Patheon with a copy of the documents incorporating such data so as
            to give Patheon the opportunity to verify the accuracy and
            regulatory validity of such documents as they relate to the
            Patheon-generated data.

      (c)   At least [**] business days prior to filing with the FDA the
            Chemistry and Manufacturing Controls ("CMC") of the initial
            regulatory filing for any Product, the Client shall provide Patheon
            with a copy of the portion of the CMC submission describing
            Patheon's activities as well as references to all supporting
            documents which have been relied upon to prepare such portion of the
            CMC submission so as to permit Patheon to verify that such portion
            of the CMC accurately describes the work that Patheon has performed
            and the manufacturing processes that Patheon will perform pursuant
            to this Contract. At the Client's request, Patheon shall also review
            any subsequent regulatory filing relating to the portion of the CMC
            describing Patheon's activities. At such time, the Client shall
            provide Patheon with a copy of the portion of the CMC submission
            describing Patheon's activities as well as references to all
            supporting documents which have been relied upon to prepare such
            portion of the CMC submission so as to permit Patheon to verify that
            such portion of the CMC submission accurately describes the work
            that Patheon has performed and the manufacturing processes that
            Patheon will perform pursuant to this Contract.

      (d)   If in Patheon's sole discretion, acting reasonably, Patheon
            determines that any of the information provided by the Client in
            accordance with paragraphs (b) and (c) above are inaccurate or
            deficient in any manner whatsoever (the "Deficiencies"), Patheon
            shall notify the Client in writing of such Deficiencies. Until such
            Deficiencies have been resolved or agreement has been reached with
            the Client, Patheon reserves the right not to participate in the
            Regulatory Authority inspection which is, or is equivalent to the
            FDA's pre-approval inspection ("PAI"). In such event, Patheon's
            non-participation in the PAI shall not be construed as a breach of
            any of its obligations under this Contract.

      (e)   For clarity, the parties agree that in reviewing the documents
            referred to in paragraphs (b) and (c) above, Patheon's role [**]
            Patheon. As such, Patheon shall [**], as the case may be. The [**].

8.    SHIPPING (IF APPLICABLE):

Shipments (if applicable) of Client's Product shall be made [**] (as defined in
INCOTERMS 2000) Patheon's shipping point unless otherwise mutually agreed. Risk
of loss or of damage to such Product shall transfer to the Client when the
Product is loaded onto the carrier's vehicle by Patheon for shipment [**]. The
Product shall be transported in accordance with the Client's instructions.

9.    MISCELLANEOUS:

      A.    ASSIGNMENT

            Neither this Contract, nor any of either party's rights hereunder,
            may be assigned or otherwise transferred by either party without the
            prior written consent of the other party, which consent shall not be
            unreasonably withheld.

      B.    FORCE MAJEURE

            Except for payment obligations, neither party will be responsible
            for delay or failure in performance resulting from acts beyond the
            reasonable control and without the fault or negligence of such
            party, including, but not limited to, strikes or other labour
            disturbances, lockouts, quarantines, communicable disease outbreaks,
            riots, wars, acts of terrorism, fires, floods, storms, lack of or
            inability to obtain fuel or power or compliance with any order or
            regulation of any government entity.

      C.    SURVIVAL

            Any termination or expiration of this Contract shall not affect any
            outstanding obligations or payments due hereunder prior to such
            termination or expiration, nor shall it prejudice any other remedies
            that the parties may have

                                  CONFIDENTIAL

                                                                   Page 23 of 24
<PAGE>

                                        Patheon Proposal # CTI-FCO1-1100-0604-R1

            under this Contract. The Confidentiality Agreement and sections 4,
            5, and 6 of the Contract shall survive the expiration or termination
            of this Contract.

      D.    INDEPENDENT CONTRACTORS

            The parties are independent contractors and this Contract shall not
            be construed to create between Patheon and the Client any other
            relationship such as, by way of example only, that of
            employer-employee, principal, agent, joint-venturer, co-partners or
            any similar relationship.

      E.    OTHER TERMS

            No terms, provisions or conditions of any purchase order or other
            business form or written authorization used by Client or Patheon
            will have any effect on the rights, duties or obligations of the
            parties, or otherwise modify, this Contract, regardless of any
            failure of Client or Patheon to object to such terms, provisions, or
            conditions unless such document specifically refers to this Contract
            and is signed by both parties.

      F.    INSURANCE

            Each party shall maintain during the term of this Contract general
            liability and product liability insurance. Either party may request
            evidence of such insurance.

      G.    ENTIRE AGREEMENT

            This Contract constitutes the complete agreement between the parties
            with respect to this subject matter and supersedes all other prior
            agreements and understandings, whether written or oral. Any
            modifications, amendment or supplement to this Contract must be in
            writing and signed by authorized representatives of both parties.

      H.    FACSIMILE

            This Contract may be signed in counterparts and by facsimile.

      I.    CHOICE OF LAW

            This Contract is governed by the laws of the State of New York
            without regard to any conflicts-of-law principle that directs the
            application to another jurisdiction's law.

                                  CONFIDENTIAL

                                                                   Page 24 of 24

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00074-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00074-of-00352.parquet"}]]