Document:

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                                                                   Exhibit 10.10

                                                                  Execution Copy

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

                                LICENSE AGREEMENT

         This License Agreement (the "Agreement") is made as of this 18th day
of December, 2003 between Abbott Laboratories, a corporation organized under the
laws of the State of Illinois, USA, with its principal office at 100 Abbott Park
Road, Abbott Park, Illinois 60064 ("Abbott") and Critical Therapeutics, Inc., a
corporation organized under the laws of the State of Delaware, USA, with its
principal office at 675 Massachusetts Avenue, 14th Floor, Cambridge,
Massachusetts 02139 ("CTI").

                                  INTRODUCTION

         1.       Abbott holds the Patents and Know How related to the Product
in the Field (all as hereinafter defined);

         2.       CTI wishes to obtain, and Abbott wishes to grant to CTI, an
exclusive license under the Patents and Know How related to the Product in the
Field in order to permit CTI to pursue the marketing, distribution, sale and
commercialization of the Product (as hereinafter defined) in the Field; and

         3.       CTI wishes to obtain, and Abbott wishes to grant to CTI,
certain rights under Abbott's agreement with Jagotec AG.

         NOW THEREFORE, in consideration of the mutual obligations and promises
as set forth herein, the parties do hereby agree as follows:

1.       DEFINITIONS. As used in this Agreement, the following terms shall have
the following respective meanings:

         1.1      "Acusphere" shall mean Acusphere, Inc.

         1.2      "Affiliate" shall mean any corporation, company, partnership,
joint venture and/or other entity which controls, is controlled by, or is under
common control of either Party hereto, except for TAP Pharmaceutical Products,
Inc. and its subsidiaries. For purposes of this definition, control shall mean
direct or indirect ownership of at least fifty percent (50%) of the stock or
participating shares entitled to vote for the election of directors (but only as
long as such ownership exists).

         1.3      "Commercially Reasonable Efforts" shall mean with respect to
the efforts to be expended by a Party with respect to any objective, reasonable,
diligent, good faith efforts to accomplish such objective as such Party would
normally use to accomplish a similar objective under similar circumstances, it
being understood and agreed that with respect to the development or
commercialization of a Product, such efforts shall be substantially equivalent
to those efforts and resources commonly used by a mid-size biotechnology company
for a similar pharmaceutical product owned by it or to which it has rights,
which product is at a similar stage in its development or product life and is of
similar market potential taking into account efficacy, safety, approved
labeling, the competitiveness of alternative products in the marketplace, the
patent and other proprietary position of the product, the likelihood of
regulatory approval given the regulatory structure involved, the profitability
of the product including the royalties payable

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to licensors of patent or other intellectual property rights, alternative
products and other relevant factors. Commercially Reasonable Efforts shall be
determined on a market-by-market and Indication-by-Indication basis for a
particular Product, and it is anticipated that the level of effort will be
different for different markets, and will change over time, reflecting changes
in the status of the Product and the market(s) involved.

         1.4      "Compound" shall mean Zileuton.

         1.5      "Confidential Information" shall mean any information data or
business plans relating to the Compound, Product, Patents and/or the know-how
which a Party discloses to the other Party, including, without limitation, the
parties to and terms of this Agreement, information protected by that certain
Option Agreement dated May 22, 2003 between Abbott and CTI, that certain
Bilateral Confidentiality Disclosure Agreement dated March 5, 2003 between
Abbott and CTI and that certain Bilateral Confidentiality Disclosure Agreement
dated August 27, 2002 between Abbott and CTI's agent, Pleiades Consultation
Inc., an Arizona corporation, except any portion thereof which:

                  (i)      is known to the receiving Party at the time of
                           disclosure and documented by written records;

                  (ii)     is disclosed to the receiving Party by a Third Party
                           that has a right to make such disclosure;

                  (iii)    becomes patented, published or otherwise part of the
                           public domain as a result of acts by a Third Party;
                           or

                  (iv)     is independently developed by or for the receiving
                           Party as evidenced by its written records.

         1.6      "Effective Date" shall mean the date of this Agreement set
forth in the opening paragraph hereof.

         1.7      "Excluded Pediatrics" shall mean research, diagnostics,
therapeutics, and services relating to humans aged seven (7) years and under for
intravenous and buccal administration of the Compound.

         1.8      "Excluded Product" shall mean the finished form of the
Compound currently marketed under the trade name of Zyflo.

         1.9      "FDA" shall mean the United States Food and Drug
Administration.

         1.10     "Field" shall mean research, diagnostics, therapeutics, and
services for all human medical conditions or diseases, except for research,
diagnostics, therapeutics, and services related to the following: (i) Excluded
Pediatrics, (ii) cardiovascular and vascular devices, including, without
limitation, stents, and (iii) Excluded Product.

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         1.11     "First Commercial Sale" shall mean the first sale of Product
in a country within the Territory by CTI, its Affiliate or sublicensee to any
Third Party after receipt of Regulatory Approval for the applicable country.

         1.12     "IND" shall mean any Investigational New Drug Application
filed with the FDA for marketing approval for a drug pursuant to the Federal
Drug and Cosmetic Act (21 U.S.C. Section 321, et seq.) and the regulations
promulgated thereunder, including any amendments or supplements thereto.

         1.13     "Indication" shall mean a distinct disease or condition in the
Field for which Regulatory Approval has been sought and/or obtained, including,
without limitation, all forms of the following diseases or conditions: asthma,
chronic obstructive pulmonary disease, and emphysema.

         1.14     "Know How" shall mean any proprietary technology (other than
the Patents) owned by or licensed (with a right of sublicense) to Abbott as of
the Effective Date or at any time during the Term relating to the use of the
Product in the Field.

         1.15     "License Agreement" shall mean that certain License Agreement
dated October 3, 1996 between Abbott and Jagotec AG, a Swiss corporation (nka
Skye Pharma) regarding certain patents, know how and manufacturing rights
regarding the controlled release formulation of the Compound.

         1.16     "License Fee" shall mean a fee of One Million Five Hundred
Thousand United States Dollars ($1,500,000).

         1.17     "NDA" shall mean a New Drug Application, and all supplements
and amendments thereto filed with the FDA, for a Product.

         1.18     "Net Sales" means, with respect to a Product, the gross amount
invoiced by CTI, its Affiliates and/or its sublicensees on sales or other
dispositions of Product to Third Parties or otherwise directly or indirectly
paid to or earned by CTI with respect to the sale of Product, less the following
deductions:

                  (a)      trade, cash and/or quantity discounts not already
reflected in the amount invoiced, to the extent included in the gross amount
invoiced;

                  (b)      allowances and adjustments credited or payable,
including credit for spoiled, damaged, outdated, recalled and returned Product,
to the extent related to the gross amount invoiced and substantiated by
reasonable documentation;

                  (c)      freight, distribution, insurance and other
transportation charges incurred in shipping a Product to Third Parties, to the
extent identified as such in the invoice to the Third Party, to the extent
included in the gross amount invoiced;

                  (d)      amounts repaid or credited by reason of rejections,
defects, recalls or returns or because of chargebacks, refunds, rebates,
retroactive price reductions or billing errors; and

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                  (e)      all tariffs, duties, excises, sales taxes or other
taxes (including VAT) and custom duties imposed upon Products, in each case to
the extent invoiced to customers or otherwise included within gross amounts
invoiced; and

                  (f)      price reductions imposed by government authorities.

         Such amounts shall be determined from the books and records of CTI, its
Affiliates and/or its sublicensees, maintained in accordance with United States
generally accepted accounting principles, consistently applied. In the case of
any sale of Products for consideration other than cash, such as barter or
countertrade, Net Sales shall be calculated on the fair market value of the
consideration received. In the event the Product is sold as part of a
Combination Product (as defined below), the Net Sales from the Combination
Product, for the purposes of determining royalty payments, shall be determined
by multiplying the Net Sales of the Combination Product during the applicable
royalty reporting period, by the fraction, A/A+B, where A is the average sale
price of the Product when sold separately in finished form and B is the average
sale price of the other product(s) included in the Combination Product when sold
separately in finished form, in each case during the applicable royalty
reporting period or, if sales of both the Product and the other product(s) did
not occur in such period, then in the most recent royalty reporting period in
which sales of both occurred. In the event that such average sale price cannot
be determined for both the Product and all other products(s) included in the
Combination Product, Net Sales for the purposes of determining royalty payments
shall be calculated by multiplying the Net Sales of the Combination Product by
the fraction of C/(C+D) where C is the fair market value of the Product and D is
the fair market value of all other pharmaceutical product(s) included in the
Combination Product. In such event, CTI shall in good faith make a determination
of the respective fair market values of the Product and all other pharmaceutical
products included in the Combination Product, and shall notify Abbott of such
determination and provide Abbott with sufficient data to support such
determination. Abbott shall have the right to review such determination and
supporting data, and to notify CTI if it disagrees with such determination. If
Abbott does not agree with such determination and if the Parties are unable to
agree in good faith as to such respective fair market values, then such matter
shall be referred to dispute resolution pursuant to Section 13.8. As used above,
the term "Combination Product" means any pharmaceutical product that consists of
a Product and other active compounds and/or active ingredients.

         1.19     "Party" shall mean Abbott or CTI, as appropriate in the
context, and "Parties" shall mean Abbott and CTI, collectively.

         1.20     "Patents" shall mean (i) those patents and patent applications
identified on Schedule 1, that are owned or licensed (with a right to
sublicense) to Abbott as of the Effective Date and relate to the Product in the
Field; (ii) any and all patents, including foreign equivalents, which may issue
from said applications; and (iii) any and all substitutions, extensions,
additions, reissues, re-examinations, renewals, divisions, continuations,
continuations-in-part or supplementary protection certificates derived from (i).

         1.21     "Product" shall mean any pharmaceutical product which
incorporates the Compound, including without limitation Zileuton CR and Zileuton
IV, but excluding the Excluded Product, for use in the Field, and (a) use of
which by CTI, an Affiliate or sublicensee

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of CTI would be an infringement of a Valid Claim (as hereinafter defined) of the
Patents but for the grant of the license from Abbott to CTI, or (b) embodies
Know-How.

         1.22     "Regulatory Approval" shall mean the approval to sell Product
granted by any Regulatory Authority (as defined below) with authority or
jurisdiction over the testing, manufacture, use, storage, import, transport,
promotion, marketing and sale of a diagnostic, research, therapeutic or service
product in a country.

         1.23     "Regulatory Authority" shall mean any federal, national,
multinational, state, provincial or local regulatory agency, department, bureau
or other governmental entity, including, but not limited to, the FDA.

         1.24     "Research Agreement" shall mean that certain Research
Agreement dated May 14, 2003 between Acusphere and Abbott regarding use of
Acusphere's drug delivery system with certain of Abbott's Know How regarding the
Compound.

         1.25     "Skye Pharma" shall mean the name to which Jagotec AG, a Swiss
corporation, is currently referred.

         1.26     "Term" shall have the meaning set forth in Section 12.1
hereof.

         1.27     "Territory" shall mean the entire world.

         1.28     "Third Party" shall mean any entity other than Abbott and its
Affiliates or CTI and its Affiliates.

         1.29     "Valid Claim" shall mean a claim of an issued and unexpired
patent whose enforceability has not been effected by any of the following: (i)
irretrievable lapse, revocation, or abandonment, (ii) unenforceable or invalid
by a decision of a court or other governmental agency of competent jurisdiction,
unappealable or un-appealed within the time allowed for appeal, and/or (iii)
disclaimer or admission of invalidity or unenforceability through reissue,
re-examination, opposition, nullity action or invalidation suit response,
disclaimer or otherwise.

         1.30     "Zileuton CR" shall mean the controlled release formulation of
the Compound, which is being investigated by CTI.

         1.31     "Zileuton IV" shall mean the intravenous formulation of the
Compound, which is being investigated by CTI.

         1.32     "Zyflo" shall mean the immediate release formulation of the
Compound for which Abbott has obtained FDA approval and is exemplified by the
product that is currently marketed within the United States by the trade name
Zyflo.

2.       LICENSE GRANTS.

         2.1      Exclusive License. Subject to Section 12.4,

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                  (i)      Abbott hereby grants to CTI and its Affiliates an
                           exclusive license under the Patents and Know How to
                           develop, have developed, make, have made, use, have
                           used, import, have imported, offer to sell, sell, and
                           have sold the Product in the Territory.

                  (ii)     Abbott hereby grants to CTI and its Affiliates,
                           subject to Skye Pharma's written consent, an
                           exclusive sublicense under Abbott's rights to Patents
                           and Know How pursuant to the License Agreement to
                           develop, have developed, make, have made, use, have
                           used, import, have imported, offer to sell, sell, and
                           have sold Zileuton CR in the Field in the Territory.
                           CTI acknowledges and agrees that CTI is responsible
                           to Skye Pharma for any and all payments due Skye
                           Pharma or its affiliates under the License Agreement
                           both by Abbott and CTI. CTI shall indemnify, defend
                           and hold harmless Abbott from any and all liability
                           relating to either CTI's or Abbott's obligations to
                           Skye Pharma under the License Agreement or in regard
                           to Zileuton CR, except to the extent such liability
                           arises out of Abbott's gross negligence or willful
                           misconduct.

         2.2      Right to Sublicense. CTI shall have the right to grant
sub-licenses to the rights granted under Section 2.1, subject to Section 2.4
below and any consent requirements that Skye Pharma retains regarding the rights
granted in Section 2.1 (ii). In the event that CTI grants a sublicense, CTI
shall notify Abbott of each such sublicense without unreasonable delay following
any such grant of sublicense. CTI shall remain fully responsible for the
compliance by such sub-licensees with the terms and conditions of this Agreement
as if such sub-licensees were CTI hereunder.

         2.3      Right to Appoint Distributors. Notwithstanding the
restrictions under section 2.4 below, CTI shall have the right, at all times, to
appoint distributors in the Territory for the sale of the Product. CTI shall
ensure that its distributors act fully in compliance with the terms and
conditions of this Agreement.

         2.4      Co-Commercialization Right of First Negotiation. In the event
that CTI decides to sublicense its rights under Section 2.1 in all or part of
the Territory, CTI shall first provide written notice to Abbott of such
decision, including the terms which CTI intends to propose to potential Third
Party sublicensee (a "co-commercialization opportunity"). Abbott shall have the
right to enter into good faith negotiations relating to such
co-commercialization opportunity for the Product by providing written notice to
CTI within forty five (45) days after receipt of CTI' s notice. If Abbott
provides such notice to CTI within such forty five (45) day period then the
Parties shall negotiate in good faith relating to such co-commercialization
opportunity for a period of seventy five (75) days, or such shorter or longer
period as is mutually agreed to by the Parties. If Abbott does not provide
notice to CTI within such initial forty five (45) day period or indicates it is
not interested in such co-commercialization opportunity, then CTI shall be free
to enter into an arrangement with a Third Party on such terms as CTI and such
Third Party may agree upon. If Abbott exercises its right of first negotiation
and the Parties are unable to reach mutual agreement as to Abbott's
participation in such co-commercialization opportunity within such seventy five
(75) day period, then CTI shall be free to enter into an arrangement with a
Third Party on terms (financial and non-financial) that are not materially more
favorable to such

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Third Party, taken as a whole, than the terms (financial and non-financial) last
discussed with Abbott. Notwithstanding the foregoing, in the event that the
Parties have not been able to agree to the terms of such co-commercialization
opportunity by the last day of such seventy five (75) day period, the Parties
shall consider, in good faith, extending such seventy five (75) day period for
up to thirty (30) days, provided, that the Parties have been diligently pursuing
a final agreement on the terms of the co-commercialization opportunity.

         2.5      Covenant Not to Sue. In the event the making, having made,
use, offer for sale, sale or import by CTI, its Affiliates, sublicensees or
distributors of Product, as formulated as of the Effective Date, would infringe
during the term of this Agreement a claim of issued letters patent which is
owned by or licensed to Abbott and which patent is not covered by the grant in
Section 2.1, Abbott hereby covenants not to sue CTI under such issued letters
patent solely for CTI to develop, make, have made, use, sell, offer for sale or
import Product in the Territory and in the Field.

         2.6      Section 365(n) of the Bankruptcy Code. All rights and licenses
granted under or pursuant to any section of this Agreement are, and shall
otherwise be deemed to be, for purposes of Section 365(n) of the Bankruptcy Code
licenses of rights to "intellectual property" as defined under Section 101(35A)
of the Bankruptcy Code. The Parties shall retain and may fully exercise all of
their respective rights and elections under the Bankruptcy Code.

3.       TECHNOLOGY TRANSFER.

         3.1      Completion of Technology Transfer. Subject to Section 6,
Abbott will use Commercially Reasonable Efforts to transfer knowledge of its
present technology as identified on Schedule 2 for the manufacture and
validation of Product, including Abbott's active pharmaceutical ingredient
process ("API Process") and the controlled release formulation ("CR
Formulation") data, to CTI (or a CTI designee) to allow CTI to further develop
and manufacture Product. CTI will reimburse Abbott for its actual costs and
expenses in this technology transfer.

         3.2      Third Party Manufacturers. Abbott shall use Commercially
Reasonable Efforts, by telephone, correspondence or other appropriate means as
agreed by the Parties, to assist CTI in obtaining the right to work with
Acusphere and the exclusive right to use Acusphere's patents and know how
related to the delivery system for Zileuton IV in the Field in the Territory. In
the event that CTI obtains such rights, CTI acknowledges and agrees that CTI
will be responsible to Acusphere for any and all payments due Acusphere or its
affiliates under the Research Agreement both by Abbott and CTI. CTI shall
indemnify, defend and hold harmless Abbott from any and all liability relating
to either CTI's or Abbott's obligations to Acusphere under the Research
Agreement or in regard to Zileuton IV, except to the extent such liability
arises out of Abbott's gross negligence or willful misconduct.

         3.3      Supply of Bulk Drug. CTI agrees to supply Abbott at no cost to
Abbott with up to 500 kilograms, per calendar year during the Term, of bulk
active pharmaceutical ingredient substance required for Abbott's research and
development activities related to Excluded Pediatrics. If Abbott requires more
than 500 kilograms of bulk active pharmaceutical ingredient substance for
Abbott's research and development activities related to Excluded Pediatrics in
any given year during the Term, CTI shall supply Abbott with Abbott's
requirements for bulk drug

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substance at CTI's cost (which cost shall only include CTI's cost of direct
materials; direct labor; manufacturing overhead; and a reasonable allocation of
general and administrative expenses and facilities expenses), such amount to be
verified in writing to Abbott's reasonable satisfaction. CTI shall supply Abbott
with Abbott's commercial requirements for bulk drug substance at CTI's cost (as
defined in this Section 3.3), such amount to be verified in writing to Abbott's
reasonable satisfaction.

4.       ACCESS TO IND AND NDA; FDA; SAFETY.

         4.1      During the Term, Abbott shall permit CTI (at CTI's expense) to
have access to Abbott's clinical filings with the FDA and any applicable foreign
regulatory authorities for Zileuton CR, as available, and copies of all
associated documents (subject to reimbursement for actual costs to Abbott
including, but not limited to accessing, copying, and shipping documents, and
any personnel or operational costs incurred by Abbott in support of CTI during
the Term) for the purposes of CTI obtaining regulatory approval of Product.
Abbott shall provide CTI with a letter of cross reference to Abbott's applicable
IND and NDA files.

         4.2      CTI shall comply with all present and future laws, including,
without limitation, the Federal Food, Drug and Cosmetic Act, rules, orders,
ordinances, regulations, statutes, requirements, codes, executive orders, rules
of common law, and any judicial interpretations thereof, extraordinary as well
as ordinary, of all governmental authorities, including, without limitation, the
FDA. Furthermore, each Party acknowledges and understands that it has no
authority to represent the other Party in any way before the FDA and as such
each Party will not make any representations or commitments in the other Party's
name with the FDA.

         4.3      Each Party warrants that it shall advise the other of any
serious adverse events relating in any way to the Compound or the Product as and
when such serious adverse events are reported or reportable by it to the
Regulatory Authorities. In addition, within ninety (90) days after the date of
this Agreement, the Parties shall use good faith efforts to enter into an
agreement to initiate a process for the exchange of adverse event safety data in
a mutually agreed format, including but not limited to, postmarketing
spontaneous reports received by a Party or its Affiliates in order to monitor
the safety of the Compound or the Product and to meet reporting requirements
with any applicable Regulatory Authority.

5.       PRODUCT DEVELOPMENT AND COMMERCIALIZATION.

         5.1      Development. CTI shall be solely responsible for development
and registration of Product, and shall use Commercially Reasonable Efforts to
obtain Regulatory Approval for Product in at least one Indication in the United
States.

         5.2      Commercialization. Upon obtaining Regulatory Approval for
Product in any country in the Territory, CTI shall use Commercially Reasonable
Efforts to market and sell such Product in such country.

         5.3      Excuse for Non-Performance. The obligations of CTI with
respect to any Product Indication or formulation under this Article 5 are
expressly conditioned upon the continuing absence of any adverse condition or
event relating to the safety or efficacy of such Product

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Indication or formulation, and the obligation of CTI to develop or market such
Product Indication or formulation shall be delayed or suspended so long as such
condition or event exists.

6.       FINANCIAL PROVISIONS.

         6.1      License Fee. In consideration of the exclusive licenses
granted hereunder, CTI shall pay to Abbott a lump sum payment of the License Fee
on the Effective Date.

         6.2      Milestones. CTI shall make the following payments to Abbott
within thirty (30) days after the achievement of the indicated milestones:

<TABLE>
<S>         <C>                   <C>
(i)         [**]                  $[**]
(ii)        [**]                  $[**]
(iii)       [**]                  $[**]
(iv)        [**]                  $[**]
(v)         [**]                  $[**]
(vi)        [**]                  $[**]
(vii)       [**]                  $[**]
(viii)      [**].                 $[**]
</TABLE>

         6.3      Royalties. CTI shall pay to Abbott royalties on Net Sales of
Product at the rates set forth below:

<TABLE>
<S>         <C>                                                <C>
(i)         [**]% of total annual Net Sales of Product of      $[**] - $[**]
(ii)        [**]% of total annual Net Sales of Product of      $[**] - $[**]
(iii)       [**]% of total annual Net Sales of Product of      $[**] - $[**]
(iv)        [**]% of total annual Net Sales of Product of      $[**] - $[**]
(v)         [**]% of total annual Net Sales of Product of      > $[**]
</TABLE>

Royalties shall be based on the total annual Net Sales of Product in all
countries during a particular calendar year for which a royalty is due. By way
of example, if Net Sales in a calendar year equaled $[**], royalties would be
calculated as follows: (i) [**]% of the first $[**]($[**]), (ii) [**]% of the
next $[**] ($[**]), (iii) [**]% of the next $[**] ($[**]), and (iv) [**]% of the
final $[**] ($[**]), for a total of $[**].

         6.4      Term of Royalty Payments. Royalties shall be paid on a
country-by-country basis for a period often (10) years from First Commercial
Sale of Product in each such country.

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         6.5      Payments to Third Parties. Any obligations due to Skye Pharma
(Jago) and any other Third Parties for the CR Formulation will be the
responsibility of CTI.

         6.6      Royalties Payable Only Once. The obligation to pay royalties
is imposed only once with respect to the same unit of a Product.

         6.7      Sales to Affiliates and Sublicensees. Sales of Products
between CTI and its Affiliates or permitted sublicensees, or among such
Affiliates and permitted sublicensees, shall not be subject to royalties under
this Article 6, but in such cases the royalties shall be calculated on the Net
Sales by such Affiliates or sublicensees to a Third Party.

         6.8      Royalty Reports; Royalty Payments. CTI shall deliver to
Abbott, within sixty (60) days after the end of each calendar quarter,
sufficiently detailed written accountings of Net Sales of Products that are
subject to royalty payments due to Abbott or Third Parties, in accordance with
this Agreement, including, without limitation, Acusphere and Skye Pharma, for
such calendar quarter. Such quarterly reports shall indicate gross sales on a
country-by-country basis, the deductions from gross sales used in calculating
Net Sales and the resulting calculation of royalties. When CTI delivers such
accountings to Abbott, CTI shall also deliver all royalty payments due under
Section 6.3 to Abbott for the calendar quarter. With respect to sales of
products invoiced in United States Dollars, the sales and royalties payable
shall be expressed in United States Dollars. With respect to sales of products
invoiced in a currency other than United States Dollars, such foreign currency
amounts shall be converted into United States Dollars at the official average
monthly rates used by Abbott Laboratories for conversion of its monthly
financial statements - the average B.2.0 rate. The month end B.2.0 rate is
determined by taking the numbers from the 9:00 am CST Reuters screen at the
second to last business day of each month (with the exception of November, when
the rate is taken on the last business day). With the exception of the Euro,
British Pound, Australian Dollar and New Zealand Dollar, the ask price is used.
For the four (4) aforementioned currencies the bid rate is used. An average
monthly rate is determined by taking the calculated average of the prior last
business day of the month book rate and the current last business day of the
month book rate.

         6.9      Audits by Abbott. CTI shall keep, and shall require its
Affiliates and sublicensees to keep, complete and accurate records of the latest
three (3) years of sales of Products to which the obligation to pay royalties to
Abbott attach hereunder. For the sole purpose of verifying royalties payable to
Abbott, Abbott shall have the right annually at Abbott's expense to retain an
independent certified public accountant selected by Abbott and reasonably
acceptable to CTI, to review such records in the location(s) where such records
are maintained by CTI, its Affiliates or its sublicensees upon reasonable notice
and during regular business hours and under obligations of confidence. Results
of such review shall be made available to both CTI and Abbott. If the review
reflects an underpayment of royalties to Abbott, such underpayment shall be
promptly remitted to Abbott. If the underpayment is equal to or greater than
five percent (5%) of the royalty amount that was otherwise due, CTI shall pay
all of the reasonable, out-of-pocket costs of such review. If the review
reflects an overpayment of royalties to Abbott, the amount of such overpayment
shall be credited against future royalties owed by CTI to Abbott.

         6.10     Tax Withholding. The Parties shall use their best efforts to
reduce tax withholding on payments made to Abbott hereunder. Notwithstanding
such efforts, if tax

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withholdings under the laws of any country are required with respect to payments
to Abbott, CTI shall withhold the required amount and pay it to the appropriate
governmental authority. In such a case, CTI will promptly provide Abbott with
original receipts or other evidence sufficient to allow Abbott to document such
tax withholdings adequately for purposes of claiming foreign tax credits and
similar benefits.

7.       REPRESENTATIONS AND WARRANTIES OF ABBOTT.

         7.1      Abbott represents and warrants that it is duly organized,
validly existing and in good standing under the laws of the State of Illinois,
that it has full corporate power and authority to enter into this Agreement and
to carry out its provisions, and that there are no outstanding agreements,
assignments or encumbrances in existence that are inconsistent with the
provisions of this Agreement. Abbott further represents and warrants that it is
duly authorized to execute and deliver this Agreement and to perform its
obligations hereunder.

         7.2      To the best of Abbott's knowledge, there are no patent
infringement actions, litigation or other proceedings, pending or threatened, by
Third Parties which affect or may affect the Patents.

         7.3      The Patents are a complete list of all patents and patent
applications that are owned by or licensed (with the right to grant sublicenses)
to Abbott and, to the best of Abbott's knowledge, that are necessary and are
used for the manufacture, use or sale of the Compound. Abbott has not previously
assigned, transferred, licensed, conveyed or otherwise encumbered its right,
title and interest in the Patents.

         7.4      To the best of Abbott's knowledge, the manufacture, use and
sale of the Compound in the Field in the Territory does not infringe upon any
intellectual property rights of any Third Party, and as of the Effective Date
there are no pending or threatened claims or litigation relating to the Patents
or the manufacture, use or sale of the Compound in the Field in the Territory.

         7.5      As of the Effective Date Abbott has disclosed to CTI, and
provided to CTI a copy of, all agreements between Abbott and any Third Parties
which are related to the development, registration, manufacture, use, marketing,
distribution, importation, sale or commercialization of the Compound in the
Field in the Territory.

8.       REPRESENTATIONS AND WARRANTIES OF CTI.

         8.1      CTI represents and warrants that it is duly organized, validly
existing and in good standing under the laws of the State of Delaware and is
authorized to conduct business in the Commonwealth of Massachusetts, that it has
full corporate power and authority to enter into this Agreement and to carry out
its provisions, and that there are no outstanding agreements, assignments or
encumbrances in existence that are inconsistent with the provisions of this
Agreement. CTI further represents and warrants that it is duly authorized to
execute and deliver this Agreement and to perform its obligations hereunder.

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9.       CONFIDENTIALITY AND NON-DISCLOSURE.

         9.1      Confidential Information. Neither Party shall use or disclose
any Confidential Information received by it pursuant to this Agreement except
for the purposes set forth in this Agreement without the prior written consent
of the other. CTI shall have the right to disclose Confidential Information to
its agent Pleiades Consultation Inc. in accordance with that certain Bilateral
Confidentiality Disclosure Agreement dated August 27, 2002 between Abbott and
CTI's agent, Pleiades Consultation Inc., an Arizona corporation, as necessary
for the exercise by CTI of its rights and obligations under this Agreement. This
obligation will continue until seven (7) years following the expiration or
termination of this Agreement.

         9.2      Exceptions. Nothing contained in this Article shall be
construed to restrict the Parties from disclosing Confidential Information as
required in clauses (i) through (iv) below, provided in each case the party
requesting to make such disclosure shall timely inform the other party and use
all reasonable efforts to limit the disclosure and maintain the confidentiality
of such Confidential Information to the extent possible. In addition, the party
requesting to make such disclosure shall permit the other party to attempt to
limit such disclosure by appropriate legal means:

                  (i)      to comply with applicable laws, to defend or
                           prosecute litigation, or to comply with governmental
                           regulations;

                  (ii)     for audit purposes; or

                  (iii)    by Court order or other government order or request;
                           or

                  (iv)     to its existing and/or potential collaborators,
                           distributors, sublicenses, investors or lenders,
                           provided that such parties or individuals receive
                           such Confidential Information, (x) on a need to know
                           basis only and (y) after an agreement in writing to
                           hold such Confidential Information under the same or
                           greater standards of confidentiality as provided for
                           in this Agreement.

         9.3      Tax Disclosure. Notwithstanding anything herein to the
contrary, each Party (and their employees and agents) may disclose to any and
all persons, without limitation of any kind, the tax treatment and tax structure
of the transactions contemplated by this Agreement and all materials of any kind
(including opinions and other tax analyses) that are provided to each Party
relating to such tax treatment and tax structure. The preceding sentence shall
be effective immediately upon the commencement of discussions between the
Parties (whether such discussions commenced orally, in writing or otherwise)
that are related to the terms of this Agreement.

         9.4      SEC Filings. Either Party may disclose the existence and terms
of this Agreement to the extent required to comply with applicable laws,
including without limitation the rules and regulations promulgated by the United
States Securities and Exchange Commission. Notwithstanding the foregoing, prior
to disclosing this Agreement or any of the terms hereof pursuant to this Section
9.4, the Parties will consult with one another on the terms of this Agreement to
be redacted in making any such disclosure. If a Party discloses this Agreement
or

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any of the terms hereof in accordance with this Section 9.4, such Party agrees,
at its own expense, to seek confidential treatment of portions of this Agreement
or such terms, as may be reasonably requested by the other Party.

10.      INTELLECTUAL PROPERTY.

         10.1     Patents. Abbott shall, during the Term, be responsible for the
filing, prosecution and maintenance of the Patents. In the event that Abbott
elects to not continue the filing, prosecution or maintenance of any of the
Patents, then Abbott shall notify CTI of such election at least sixty (60) days
prior to the last available date for action to preserve such Patents. If CTI
elects to continue the filing, prosecution or maintenance of any such Patent
Right, then CTI may do so at its sole expense; provided, however, that CTI may
deduct all out of pocket expenses and reasonable attorney's fees incurred in
preserving such Patent Right from the royalties due to Abbott.

         10.2     Notification of Claim. If a Third Party notifies CTI or
Abbott, or their respective Affiliates or sublicensees, that any act by CTI, or
its Affiliates or sublicensees, utilizing the Patents in the Field allegedly
infringes any patent rights of such Third Party, CTI or Abbott shall promptly
notify the other in writing.

         10.3     Third Party Infringement.

                  (a)      Abbott shall have the first right but not the
obligation to take reasonable actions to protect the Patents from infringement
in the Field, when, from its own knowledge or upon notice from CTI, Abbott
becomes aware of the reasonable probability that such infringement or
unauthorized use exists in the Field.

                  (b)      Within ninety (90) days of becoming aware of the
infringement of the Patents in the Field Abbott shall decide whether to
institute an infringement suit or take other appropriate action that it believes
is reasonably required to protect the Patents in the Field. If Abbott fails to
institute such suit or take such action within such ninety (90) day period, then
CTI shall have the right at its sole discretion to institute such suit or other
appropriate action in the name of either or both Parties. In either such event,
each Party shall cooperate with the other Party to the extent reasonably
possible, including the joining of suit if necessary or desirable.

                  (c)      Each Party shall assume and pay all of its own
out-of-pocket costs incurred in connection with any litigation or proceedings
undertaken by such Party described in this Section 10.3, including, without
limitation, the fees and expenses of that Party's counsel.

                  (d)      In the event that either CTI or Abbott takes action
pursuant to subsection (b) above, the other Party shall cooperate with the Party
so acting to the extent reasonably possible, including the joining of suit if
necessary or desirable. Neither Party shall settle or compromise any claim or
proceeding relating to Patents without obtaining the prior written consent of
the other Party, such consent not to be unreasonably withheld.

                  (e)      Any recovery obtained by any Party as a result of any
proceeding described in this Section 10.3, by settlement or otherwise, shall be
applied in the following order of priority:

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                           (i)      first, to reimburse each Party for all
litigation costs in connection with such proceeding paid by that Party and not
otherwise recovered (on a pro rata basis based on each Party's respective
litigation costs, to the extent the recovery was less than all such litigation
costs); and

                           (ii)     second, in the event that the action was
brought by Abbott, then the remainder of the recovery shall be divided equally
between the Parties; or

                           (iii)    third, in the event that the action was
brought by CTI, then the remainder of the recovery shall be multiplied by [**]
percent ([**]%) and then the product of such multiplication shall be treated as
Net Sales of Product in accordance with Section 6.3. After Abbott has been paid
its royalty on such Net Sales of Product in accordance with Section 6.3, then
CTI shall be entitled to the remainder of the recovery.

         10.4     Claimed Infringement. In the event that a Party becomes aware
of any claim that the manufacture, use or sale of the Product by CTI infringes
the intellectual property rights of any Third Party, such Party shall promptly
notify the other Party. In any such instance, the Parties shall cooperate and
shall mutually agree upon an appropriate course of action. Each Party shall
provide to the other Party copies of any notices it receives from third parties
regarding any alleged infringement of Third Party intellectual property rights
and/or any declaratory judgment actions. Such notices shall be provided
promptly, but in no event after more than fifteen (15) days following receipt
thereof.

         10.5     Patent Invalidity Claim. If a Third Party at any time asserts
a claim that any Patent Right is invalid or otherwise unenforceable (an
"Invalidity Claim"), whether as a defense in an infringement action brought by
CTI or Abbott pursuant to Section 10.3 or in an action brought against CTI or
Abbott under Section 10.4, the Parties shall cooperate with each other in
preparing and formulating a response to such Invalidity Claim. Neither Party
shall settle or compromise any Invalidity Claim without the consent of the other
Party, which consent shall not be unreasonably withheld.

         10.6     Patent Marking. CTI agrees to comply with the patent marking
statutes in each country in which Products are sold by CTI, its Affiliates,
sublicensees and/or distributors.

11.      INDEMNIFICATION.

         11.1     CTI. CTI agrees to defend Abbott and its Affiliates at its
cost and expense, and will indemnify and hold Abbott and its Affiliates and
their respective directors, officers, employees and agents (the "Abbott
Indemnified Parties") harmless from and against any losses, costs, damages, fees
or expenses arising out of any Third Party claim relating to (i) any breach by
CTI of any of its representations, warranties or obligations pursuant to this
Agreement or (ii) personal injury from the development, manufacture, use, sale
or other disposition of Product by CTI, its Affiliates and/or sublicensees. In
the event of any such claim against the Abbott Indemnified Parties by any Third
Party, Abbot shall promptly notify CTI in writing of the claim and CTI shall
manage and control, at its sole expense, the defense of the claim and its
settlement. The Abbott Indemnified Parties shall cooperate with CTI and may, at
their option and expense, be represented in any such action or proceeding. CTI
shall not be liable for any litigation costs

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or expenses incurred by the Abbott Indemnified Parties without CTI's prior
written authorization. In addition, CTI shall not be responsible for the
indemnification of any Abbott Indemnified Party arising from any negligent or
intentional acts by such Party, or as the result of any settlement or compromise
by the Abbott Indemnified Parties without CTI's prior written consent.

         11.2     Abbott. Abbott agrees to defend CTI and its Affiliates at its
cost and expense, and will indemnify and hold CTI and its Affiliates and their
respective directors, officers, employees and agents (the "CTI Indemnified
Parties") harmless from and against any losses, costs, damages, fees or expenses
arising out of any Third Party claim relating to (i) any breach by Abbott of any
of its representations, warranties or obligations pursuant to this Agreement or
(ii) personal injury from the development, manufacture, use, sale or other
disposition of Compound by Abbott, its Affiliates, licensees or collaborators.
In the event of any such claim against the CTI Indemnified Parties by any Third
Party, CTI shall promptly notify Abbott in writing of the claim and Abbott shall
manage and control, at its sole expense, the defense of the claim and its
settlement. The CTI Indemnified Parties shall cooperate with Abbott and may, at
their option and expense, be represented in any such action or proceeding.
Abbott shall not be liable for any litigation costs or expenses incurred by the
CTI Indemnified Parties without Abbott prior written authorization. In addition,
Abbott shall not be responsible for the indemnification of any CTI Indemnified
Party arising from any negligent or intentional acts by such Party, or as the
result of any settlement or compromise by the CTI Indemnified Parties without
Abbott prior written consent.

         11.3     Insurance. Each Party shall, at its sole cost and expense,
obtain and keep in force general liability insurance with product liability
limits of Seven Million Five Hundred Thousand U.S. Dollars (U.S. $7,500,000) in
the aggregate and general liability, including, without limitation coverage for
bodily injury, death and property damage, limits of One Million US. Dollars
(U.S. $1,000,000) in the aggregate. Within thirty (30) days after the Effective
Date, each Party shall furnish to the other a certificate of insurance
evidencing the insurance coverage required by this Agreement and providing for
at least ten (10) days prior written notice to the other Party of any
cancellation, termination, material change or reduction of such insurance
coverage. During the Term, either Party may self-insure regarding the insurance
requirements in accordance with this Section, provided such Party maintains a
net worth as measured by its retained earnings in the amount of Five Hundred
Million U.S. Dollars (U.S. $500,000,000).

12.      TERMINATION.

         12.1     Term. This Agreement shall be effective as of the Effective
Date and shall remain in effect unless terminated pursuant to Section 12.3 below
("Term").

         12.2     Survival of Licenses. Upon the expiration of CTI's obligations
to pay royalties to Abbott under Section 6.4 with respect to Product in each
country, the licenses set forth in Article 2 shall be deemed to be perpetual,
irrevocable and fully-paid up with respect to Product in such country.

         12.3     Termination.

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                  (a)      CTI shall have the right to terminate this Agreement
at any time upon sixty (60) days written notice to Abbott in CTI's sole and
absolute discretion, provided that CTI shall pay Abbott Four Million United
States Dollars ($4,000,000) (the "Termination Fee"), less the License Fee and
any milestone payments that CTI has already made to Abbott in accordance with
Section 6.2. In the event that CTI has paid Abbott Four Million United States
Dollars ($4,000,000) or more in payment of the License Fee and in milestone
payments in accordance with Section 6.2, then CTI shall not owe Abbott the
Termination Fee in accordance with this paragraph 12.3(a).

                  (b)      Either Party may terminate this Agreement by giving
to the other Party prior written notice of not less than sixty (60) days in the
case of a material breach of this Agreement, and such breaching Party shall fail
to cure, or commence action to cure, such breach during such sixty (60) day
period. In the event of a dispute as to whether a material breach has occurred,
the existence of material breach shall be determined using the ADR procedure set
forth in Section 13.8 and Exhibit A. A Party's right to terminate this Agreement
shall only apply if the breaching Party fails to cure such breach in the manner
required by the final judgment of the ADR hearing within sixty (60) days after
that judgment is rendered.

         12.4     Effect of Termination. Upon termination of this Agreement
pursuant to Section 12.3:

                  (a)      In the event that such termination is by Abbott
pursuant to Section 12.3(b) or by CTI pursuant to Section 12.3(a), then all
licenses granted to CTI shall immediately terminate and CTI shall assign to
Abbott all of its right, title and interest in and to all regulatory filings and
Regulatory Approvals relating to Product; or

                  (b)      In the event that such termination is by CTI for a
material breach of this Agreement by Abbott, then the rights of Abbott under
Section 2.4 shall immediately terminate and all licenses set forth in Section
2.1, 2.2 and 2.3 shall continue in effect. In addition, CTI's financial
obligations set forth in Section 6.3 shall remain in effect and survive such
termination.

         12.5     Survival. Upon termination of this Agreement for any reason,
nothing in this Agreement shall be construed to release either Party from any
obligations that matured prior to the effective date of expiration or
termination; and Sections 12.2, 12.4 and this Section 12.5 and the following
provisions shall expressly survive any such expiration or termination: Article
1, Article 2 (to the extent provided in Section 12.4), Article 6 (to the extent
additional amounts are to be paid to Abbott in accordance with paragraph 12.3(a)
or paragraph 12.4(b )), Article 9, Article 11 and Article 13.

13.      MISCELLANEOUS.

         13.1     Notices. Any notice required or permitted to be given or made
under this Agreement by one of the Parties to the other shall be in writing,
delivered by facsimile (and promptly confirmed by personal delivery, first-class
mail U.S. or courier), addressed to such other Party at its address and
facsimile number indicated below, or to such other address and facsimile as the
addressee shall have last furnished in writing to the addressor and (except as
otherwise provided in this Agreement) shall be effective upon the date on which
the facsimile is sent by the notifying Party.

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         If to CTI:        Critical Therapeutics, Inc.
                           675 Massachusetts Avenue
                           14th Floor
                           Cambridge, Massachusetts 02139
                           Attention: Chief Executive Officer
                           FACSIMILE: 617-354-9318

                           with a copy to:

                           Hale and Dorr LLP
                           60 State Street
                           Boston, MA 02109
                           Attention: Steven D. Singer, Esq.
                           FACSIMILE: 617-526-5000

         If to Abbott:     Abbott Laboratories
                           100 Abbott Park Road
                           Dept. R432; Bldg. AP9-1
                           Abbott Park, Illinois 60064
                           Attention: John M. Leonard, MD
                           FACSIMILE: 847-937-3918

                           with a copy to:

                           Abbott Laboratories
                           100 Abbott Park Road
                           Dept. 364; Bldg. AP6D
                           Abbott Park, Illinois 60064
                           Attention: Senior Vice President,
                           Secretary and General Counsel
                           FACSIMILE: 847-938-6277

         13.2     Applicable Law. This Agreement shall be governed by and
construed in accordance with the laws of the State of Illinois, excluding its
conflict of laws provisions.

         13.3     Entire Agreement. Subject to the confidentiality obligations
contained in that certain Bilateral Confidentiality Disclosure Agreement dated
March 5, 2003 between Abbott and CTI and that certain Bilateral Confidentiality
Disclosure Agreement dated August 27, 2002 between Abbott and CTI's agent,
Pleiades Consultation, Inc., an Arizona corporation, this Agreement contains the
entire understanding of the Parties with respect to the subject matter hereof.
All other express or implied agreements and understandings, either oral or
written, heretofore made are expressly superseded by this Agreement. This
Agreement may be amended, or any term hereof modified, only by a written
instrument duly executed by both Parties.

         13.4     Counterparts. This Agreement may be executed in two (2) or
more counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument. This Agreement may be
executed by facsimiles of the Parties' signatures

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provided the facsimile counterpart signature pages are promptly followed by the
original signature pages by overnight delivery in accordance with Section 13.1.

         13.5     Severability. If any provision of this Agreement is deemed
unenforceable, the remainder of the Agreement will not be affected and, if
appropriate, the Parties will attempt to replace the unenforceable provision
with a new provision that, to the extent possible, reflects the Parties'
original intent.

         13.6     Schedules/Exhibits. All Schedules and Exhibits attached hereto
are incorporated herein by this reference as if fully set forth herein.

         13.7     Assignment. Except as expressly provided herein, this
Agreement and any documents executed in connection herewith shall not be
assigned by operation of law or otherwise by CTI without the prior written
consent of Abbott, which consent shall not be unreasonably withheld, and any
assignment without such prior written consent shall be null and void. Abbott
shall notify CTI in writing of its determination to grant or withhold such
consent ("Abbott Notice") within sixty (60) days of the date of CTI' s notice to
Abbott of the proposed assignment of this Agreement. In the absence of such
Abbott Notice within such sixty-day period, consent shall be deemed to have been
granted by Abbott for purposes of this Section 13.7. Notwithstanding the
foregoing, CTI may make such assignment without Abbott's consent in connection
with a sale of all or substantially all of the business and assets of CTI to
which the subject matter of this Agreement pertains ("change of control"), to
any health care company or group of companies acting in concert for whom
collective worldwide sales of pharmaceutical products in a calendar year that
preceded the change of control were [**] dollars (US$[**]) or less and provided
that CTI provides Abbott with reasonable prior written notice of such
assignment, including, without limitation, documentation to support such
assignee's sales and copies of the assignment and assumption agreement.

         13.8     Dispute Resolution. The Parties shall attempt to settle any
dispute arising out of or relating to this Agreement in an amicable way. Any
controversy, claim or right of termination for cause which may arise under, out
of, in connection with, or relating to this Agreement, or any breach thereof,
shall be settled according to the Alternative Dispute Resolution provisions
attached hereto as Exhibit A.

         13.9     Independent Contractor. Subject to the terms and provisions of
this Agreement, it is understood that both Parties are independent contractors
and engage in the operation of their own respective businesses and neither Party
is to be considered the agent of the other Party for any purpose whatsoever and
neither Party has any authority to enter into any contract or assume any
obligation for the other Party or to make any warranty or representation on
behalf of the other Party. Each Party shall be fully responsible for its own
employees, servants and agents, and the employees, servants and agents of one
Party shall not be deemed to be employees, servants and agents of the other
Party for any purpose whatsoever.

         13.10    Publicity. Within five (5) days of the Effective Date, the
Parties shall jointly issue a press release in the exact form set forth in
Exhibit B attached hereto ("Press Release"). Subject to Article 9, each of the
Parties acknowledges that, other than the Press Release, neither the signing of
this Agreement nor the relationship of the Parties under this Agreement requires
a

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press release to be issued, or any other form of public disclosure to be made,
by either Party under any applicable law or requirement, including but not
limited to any requirement of securities law or any stock exchange or market.
Other than the Press Release, neither Party shall issue any press release or any
other form of public disclosure regarding this Agreement or the relationship of
the Parties under this Agreement or use the name of the other Party in any press
release or other publicity ("Agreement Publicity") following the Effective Date,
except as required by a mandatory provision of applicable law and solely to the
extent necessary to comply with such provision of law.

In the event either Party reaches the conclusion that Agreement Publicity is
required after the Effective Date, such party shall inform the other Party of
its conclusion and provide the other Party with the opportunity to review the
Agreement Publicity and the necessity of making the Agreement Publicity at least
ten (10) business days prior to the planned release of the Agreement Publicity
and agrees to take such other Party's input and opinion seriously into account
before releasing the Agreement Publicity.

The Parties acknowledge that either Party's failure to meet the requirements of
this Section 13.10 shall constitute a material breach of this Agreement, giving
the other Party the right, if such breach is not cured within the applicable
cure period, to terminate this Agreement pursuant to Section 12.3(b) hereof.

         13.11    Day of Performance. If any date for performance hereunder
falls on a Saturday, Sunday or other day which is a holiday under Federal law or
the State of Illinois, the date for such performance shall be the next
succeeding business day.

         13.12    No Consequential Damages. UNLESS RESULTING FROM A PARTY'S
WILLFUL MISCONDUCT OR FROM A PARTY'S BREACH OF ARTICLE VI, NEITHER PARTY HERETO
WILL BE LIABLE FOR SPECIAL, INCIDENTAL, CONSEQUENTIAL, EXEMPLARY, PUNITIVE,
MULTIPLE OR OTHER INDIRECT DAMAGES ARISING OUT OF THIS AGREEMENT OR THE EXERCISE
OF ITS RIGHTS HEREUNDER, OR FOR LOSS OF PROFITS, LOSS OF DATA OR LOSS OF USE
DAMAGES ARISING FROM OR RELATING TO ANY BREACH OF THIS AGREEMENT WHETHER BASED
UPON WARRANTY, CONTRACT, TORT, STRICT LIABILITY OR OTHERWISE, REGARDLESS OF ANY
NOTICE OF SUCH DAMAGES. NOTHING IN THIS SECTION 13.12 IS INTENDED TO LIMIT OR
RESTRICT THE INDEMNIFICATION RIGHTS OR OBLIGATIONS OF EITHER PARTY UNDER THIS
AGREEMENT.

         13.13    Force Majeure. Neither Party shall be held liable to the other
Party nor be deemed to have defaulted under or breached the Agreement for
failure or delay in performing any obligation under the Agreement (except for a
Party's requirement to pay amounts due to the other Party in accordance with
this Agreement) when such failure or delay is caused by or results from causes
beyond the reasonable control of the affected Party including, but not limited
to, embargoes, war, acts of war (whether war be declared or not), insurrections,
riots, civil commotions, strikes, lockouts or other labor disturbances, fire,
floods, or other acts of God, or acts, omissions or delays in acting by any
governmental authority or the other Party. The affected Party shall notify the
other Party of such force majeure circumstances as soon as

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reasonably practical, and shall promptly undertake all reasonable efforts
necessary to cure such force majeure circumstances.

         13.14    Exports. CTI acknowledges that the export of technical data,
materials or products is subject to the exporting party receiving any necessary
export authorizations, approvals, permits, licenses and consents from the Bureau
of Industry and Security, and other applicable U.S. government agencies. CTI
agrees not to export or re-export, directly or indirectly, any information,
know-how, technical data, the direct product of such data, samples or product
received or generated under this Agreement in violation of any applicable U.S.
export control laws or governmental regulations. CTI agrees to obtain similar
covenants from its licensees or sublicensees, as the case may be, with respect
to the subject matter of this Section 13.14.

           [REMAINDER OF THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK.]

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IN WITNESS WHEREOF, the Parties have executed this Agreement as of the day first
at written.

ABBOTT LABORATORIES                               CRITICAL THERAPEUTICS, INC.
an Illinois corporation                           a Delaware corporation

By: /s Jeffrey M. Leiden                          By: /s/ Trevor Phillips
   ------------------------------------------        ---------------------------
Name: Jeffrey M Leiden, MD, PhD                   Name: Trevor Phillips
Title: President and Chief Operating Officer,     Title: Chief Operating Officer
       Pharmaceutical Products Group

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                                   SCHEDULE 1

                                    (Patents)

<TABLE>
<CAPTION>
COUNTRY               PATENT NO.           ISSUE DATE        EXPIRATION DATE
<S>                  <C>                <C>                  <C>
Australia            608,804            2 September 1991     9 February 2008
Belgium              279,263            4 August 1993        1 February 2008
Brazil               PI 1100072-4       18 May 1999          10 February 2007
Canada               1,327,204          22 February 1994     22 February 2011
France               279,263            4 August 1993        1 February 2008
Germany              279,263            4 August 1993        1 February 2008
Greece               279,263            4 August 1993        1 February 2008
Italy                279,263            4 August 1993        1 February 2008
Japan                1,862,133          8 August 1994        10 February 2008
Korea                103,306            12 August 1996       16 April 2011
Mexico               179,410            30 August 1995       10 October 2006
Netherlands          279,263            4 August 1993        1 February 2008
Singapore            9791468-3          15 May 1997          1 February 2008
Spain                279,263            4 August 1993        1 February 2008
Sweden               279,263            4 August 1993        1 February 2008
Switzerland          279,263            4 August 1993        1 February 2008
United Kingdom       279,263            4 August 1993        1 February 2008
United States        4,873,259          10 October 1989      10 December 2010
</TABLE>

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                                   SCHEDULE 2

                              (Technology Transfer)

THIRD PARTY MANUFACTURING (TPM) OF API PHASE IT PROCESS AND CR PRODUCT
FORMULATION

THE TECHNOLOGY TRANSFER PROCESS WILL BE INITIATED WITHIN [**] OF THE AGREEMENT
BEING SIGNED ("AGREED-TO START DATE") BETWEEN ABBOTT LABORATORIES (ABBOTT) AND
CRITICAL THERAPEUTICS INC. (CTI)

ABBOTT SHOULD PROVIDE COMMERCIALLY REASONABLE ASSISTANCE TO FACILITATE THE
TECHNOLOGY TRANSFER TO CTI AND TO CTI APPOINTED TPM OF THE API, RHODIA PHARMA
SOLUTIONS (RPS), AND TO THE TPM OF THE CR FORMULATION, SKYE PHARMA AG (SKP)

API TRANSFER OF TECHNOLOGY

THE TECHNOLOGY TRANSFER OF THE API WILL BE COMPLETED WITHIN [**] OF THE
AGREED-TO-START DATE.

ABBOTT WILL USE COMMERCIALLY REASONABLE EFFORTS TO PROVIDE THE MATERIALS,
DOCUMENTS, DATA AND REPORTS REQUESTED FOR THE TECHNOLOGY TRANSFER AND TO ANSWER
QUESTIONS RAISED BY CTI AND THE APPOINTED TPM, RPS, DURING THAT PERIOD. A
MEETING WILL BE SCHEDULED BETWEEN CTI AND THE APPOINTED TPM, RPS, AND ABBOTT
TECHNICAL STAFF AT A DATE AGREED UPON BY THE PARTIES

o    MATERIALS, DOCUMENTS, DATA AND REPORTS (API)
     o    Reference standards, as available, at Abbott for the Phase II bulk and
          impurities: [**]
     o    Phase II bulk drug: 3 lots of Phase II bulk expired, to be used for
          development work
          -    [**]
          -    [**]
          -    [**]
     o    Access to the relevant original zileuton IR NDA 20-471 documents to
          support changes in API manufacturing process and changes of
          manufacturing
     o    Batch records for optimized Phase II process batches. Per Abbott QA
          policy, either copies will be provided or CTI will be given access to
          review.
     o    Validation report for Phase II process
     o    Microbial data for Phase II batches
     o    Validation data for microbiological tests
     o    Stability program: forced degradation data
     o    Details of relevant critical process parameters
     o    Environmental: detailed mass balance/info on composition of waste
          streams
     o    [**]
     o    availability of technical staff to answer specific questions in the
          form of conference call, correspondence or other means agreed by the
          parties

                LIST OF REFERENCE STANDARDS AVAILABLE FROM ABBOTT

PARENT
CAT. NO.                   TYPE                      DESCRIPTION
[**]

Execution Copy

[**]

CAT NO.  TYPE     DESCRIPTION

[**]

<PAGE>
Execution Copy

CR FORMULATION PRODUCT TRANSFER OF TECHNOLOGY

THE TECHNOLOGY TRANSFER OF THE CR PRODUCT WILL BE COMPLETED WITHIN [**] OF THE
AGREED-TO-START DATE.

ABBOTT WILL USE COMMERCIALLY REASONABLE EFFORTS TO PROVIDE THE MATERIALS,
DOCUMENTS, DATA AND REPORTS REQUESTED FOR THE TECHNOLOGY TRANSFER AND TO ANSWER
QUESTIONS RAISED BY CTI AND THE APPOINTED TPM, SKP, DURING THAT PERIOD. A
MEETING WILL BE SCHEDULED BETWEEN CTI AND THE APPOINTED TPM, SKP, AND ABBOTT
TECHNICAL STAFF AT A DATE AGREED UPON BY THE PARTIES

o    MATERIALS, DOCUMENTS, DATA AND REPORTS (CR PRODUCT)

     o    As available, samples of CR tablets from the production scale batches
          ([**]) and other production batches ([**])
     o    batch records from production scale batches mentioned above
     o    validation report [[**]]
     o    MSDS [already provided]
     o    Friability: copy of packaging and shipping studies
     o    Statistical analyses from the 12 months stability report [**]
     o    Full report from genotoxicity studies with CR degradant [**]
     o    Copies of the relevant original zileuton IR NDA 20-471 documents and
          zileuton CR IND 47,561 to support changes in manufacturing site of the
          CR product and submit an NDA for zileuton CR in asthma

     o    Transfer database for Phase III clinical Trials Zileuton CR Product
          -    M95-337: Phase III pivotal Study
          -    M96-464: Long-Term Safety study
          -    Statistical Analyses
          -    Full reports including Appendices and Protocols, if not already
               available
          -    CRFs and all relevant source documents from investigators
     o    Transfer database (safety and PK) for Biopharmaceutics Studies
          -    M95-266
          -    M95-262
          -    M96-556
          -    M97-742
          -    Full Clinical and Drug Metabolism reports, including Appendices
               and Protocols, if not already available
          -    CRFs and all relevant source documents
     o    Analytical procedure for zileuton in plasma samples
     o    Copy of full CR IND 47,561 submission and Amendments, if not already
          provided
     o    FDA communications and reports of serious AEs, if not already provided
     o    Detailed post-marketing safety data! reports on Zyflo, specially
          regarding hepatic events
     o    Copy of all relevant patents as listed in Schedule 1
Availability of technical staff to answer specific questions in the form of
conference call, correspondence or other means agreed by the Parties

<PAGE>

                                                                  Execution Copy

                                    EXHIBIT A

                        (Alternative Dispute Resolution)

         The Parties recognize that from time to time a dispute may arise
relating to either Party's right or obligations under this Agreement. The
Parties agree that any such dispute shall be resolved by the Alternative Dispute
Resolution ("ADR") provisions set forth in this Exhibit, the result of which
shall be binding upon the Parties.

         To begin the ADR process, a Party first must send written notice of the
dispute to the other Party for attempted resolution by good faith negotiations
between their respective presidents (or their designees) of the affected
subsidiaries, divisions, or business units within twenty-eight (28) days after
such notice is received (all references to "days" in this ADR provision are to
calendar days). If the matter has not been resolved within twenty-eight (28)
days of the notice of dispute, or if the Parties fail to meet within such
twenty-eight (28) days, either Party may initiate an ADR proceeding as provided
herein. The Parties shall have the right to be represented by counsel in such a
proceeding.

1.       To begin an ADR proceeding, a Party shall provide written notice to the
         other Party of the issues to be resolved by ADR. Within fourteen (14)
         days after its receipt of such notice, the other Party may, by written
         notice to the Party initiating the ADR, add additional issues to be
         resolved within the same ADR.

2.       Within twenty-one (21) days following receipt of the original ADR
         notice, the Parties shall select a mutually acceptable neutral to
         preside in the resolution of any disputes in this ADR proceeding. If
         the Parties are unable to agree on a mutually acceptable neutral within
         such period, either party may request the President of the CPR
         Institute for Dispute Resolution ("CPR"), 366 Madison Avenue, 14th
         Floor, New York, New York 10017, to select a neutral pursuant to the
         following procedures:

         (a)      The CPR shall submit to the Parties a list of not less than
                  five (5) candidates within fourteen (14) days after receipt of
                  the request, along with a Curriculum Vitae for each candidate.
                  No candidate shall be an employee, director, or shareholder of
                  either Party or any of their subsidiaries or affiliates.

         (b)      Such list shall include a statement of disclosure by each
                  candidate of any circumstances likely to affect his or her
                  impartiality.

         (c)      Each Party shall number the candidates in order of preference
                  (with the number one (1) signifying the greatest preference)
                  and shall deliver the list to the CPR within seven (7) days
                  following receipt of the list of candidates. If a Party
                  believes a conflict of interest exists regarding any of the
                  candidates, that Party shall provide a written explanation of
                  the conflict to the CPR along with its list showing its order
                  of preference for the candidates. Any Party failing to return
                  a list of preferences on time shall be deemed to have no order
                  of preference.

         (d)      If the Parties collectively have identified fewer than three
                  (3) candidates deemed to have conflicts, the CPR immediately
                  shall designate as the neutral the

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<PAGE>

                                                                  Execution Copy

                  candidate for whom the parties collectively have indicated the
                  greatest preference. If a tie should result between two
                  candidates, the CPR may designate either candidate. If the
                  Parties collectively have identified three (3) or more
                  candidates deemed to have conflicts, the CPR shall review the
                  explanations regarding conflicts and, in its sole discretion,
                  may either (i) immediately designate as the neutral the
                  candidate for whom the Parties collectively have indicated the
                  greatest preference, or (ii) issue a new list of not less than
                  five (5) candidates, in which case the procedures set forth in
                  subparagraphs 2(a) -2(d) shall be repeated.

3.       No earlier than twenty-eight (28) days or later than fifty-six (56)
         days after selection, the neutral shall hold a hearing to resolve each
         of the issues identified by the Parties. The ADR proceeding shall take
         place at a location agreed upon by the Parties. If the Parties cannot
         agree, the neutral shall designate a location other than the principal
         place of business of either Party or any of their subsidiaries or
         affiliates.

4.       At least seven (7) days prior to the hearing, each Party shall submit
         the following to the other Party and the neutral:

         (a)      a copy of all exhibits on which such Party intends to rely in
                  any oral or written presentations to the neutral;

         (b)      a list of any witnesses such Party intends to call at the
                  hearing, and a short summary of the anticipated testimony of
                  each witness;

         (c)      a proposed ruling on each issue to be resolved, together with
                  a request for a specific damage award or other remedy for each
                  issue. The proposed rulings and remedies shall not contain any
                  recitation of the facts or any legal arguments and shall not
                  exceed one (1) page per issue.

         (d)      a brief in support of such Party's proposed rulings and
                  remedies, provided that the brief shall not exceed twenty (20)
                  pages. This page limitation shall apply regardless of the
                  number of issues raised in the ADR proceeding.

         Except as expressly set forth in subparagraphs 4(a) - 4(d), no
         discovery shall be required or permitted by any means, including
         depositions, interrogatories, requests for admissions, or production of
         documents.

5.       The hearing shall be conducted on two (2) consecutive days and shall be
         governed by the following rules:

         (a)      Each Party shall be entitled to five (5) hours of hearing time
                  to present its case. The neutral shall determine whether each
                  Party has had the five (5) hours to which it is entitled.

         (b)      Each Party shall be entitled, but not required, to make an
                  opening statement, to present regular and rebuttal testimony,
                  documents or other evidence, to cross-examine witnesses, and
                  to make a closing argument. Cross-examination of witnesses
                  shall occur immediately after their direct testimony, and
                  cross-

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<PAGE>

                                                                  Execution Copy

                  examination time shall be charged against the Party conducting
                  the cross-examination.

         (c)      The party initiating the ADR shall begin the hearing and, if
                  it chooses to make an opening statement, shall address not
                  only issues it raised but also any issues raised by the
                  responding party. The responding party, if it chooses to make
                  an opening statement, also shall address all issues raised in
                  the ADR. Thereafter, the presentation of regular and rebuttal
                  testimony and documents, other evidence, and closing arguments
                  shall proceed in the same sequence.

         (d)      Except when testifying, witnesses shall be excluded from the
                  hearing until closing arguments.

         (e)      Settlement negotiations, including any statements made
                  therein, shall not be admissible under any circumstances.
                  Affidavits prepared for purposes of the ADR hearing also shall
                  not be admissible. As to all other matters, the neutral shall
                  have sole discretion regarding the admissibility of any
                  evidence.

6.       Within seven (7) days following completion of the hearing, each Party
         may submit to the other Party and the neutral a post-hearing brief in
         support of its proposed rulings and remedies, provided that such brief
         shall not contain or discuss any new evidence and shall not exceed ten
         (10) pages. This page limitation shall apply regardless of the number
         of issues raised in the ADR proceeding.

7.       The neutral shall rule on each disputed issue within fourteen (14) days
         following completion of the hearing. Such ruling shall adopt in its
         entirety the proposed ruling and remedy of one of the Parties on each
         disputed issue but may adopt one Party's proposed rulings and remedies
         on some issues and the other Party's proposed rulings and remedies on
         other issues. The neutral shall not issue any written opinion or
         otherwise explain the basis of the ruling.

8.       The neutral shall be paid a reasonable fee plus expenses. These fees
         and expenses, along with the reasonable legal fees and expenses of the
         prevailing Party (including all expert witness fees and expenses), the
         fees and expenses of a court reporter, and any expenses for a hearing
         room, shall be paid as follows:

         (a)      If the neutral rules in favor of one Party on all disputed
                  issues in the ADR, the losing Party shall pay 100% of such
                  fees and expenses.

         (b)      If the neutral rules in favor of one Party on some issues and
                  the other Party on other issues, the neutral shall issue with
                  the rulings a written determination as to how such fees and
                  expenses shall be allocated between the Parties. The neutral
                  shall allocate fees and expenses in a way that bears a
                  reasonable relationship to the outcome of the ADR, with the
                  Party prevailing on more issues, or on issues of greater value
                  or gravity, recovering a relatively larger share of its legal
                  fees and expenses.

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<PAGE>

                                                                  Execution Copy

9.       The rulings of the neutral and the allocation of fees and expenses
         shall be binding, non-reviewable, and non-appealable, and may be
         entered as a final judgment in any court having jurisdiction.

10.      Except as provided in paragraph 9 or as required by law, the existence
         of the dispute, any settlement negotiations, the ADR hearing, any
         submissions (including exhibits, testimony, proposed rulings, and
         briefs), and the rulings shall be deemed Confidential Information. The
         neutral shall have the authority to impose sanctions for unauthorized
         disclosure of Confidential Information.

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<PAGE>

                        Exhibit B (form of press release)

[Critical Therapeutics logo]

CONFIDENTIAL DRAFT

Contact:

     Trevor Phillips, Ph.D.                 or   Scott Solomon
     Vice President of Operations                Vice President
     Critical Therapeutics, Inc.                 Sharon Merrill Associates, Inc.
     617.354.9311 x226                           617.542.5300
     tphillips@criticaltherapeutics.com          ssolomon@investorrelations.com

              CRITICAL THERAPEUTICS IN-LICENSES ASTHMA DRUG PROGRAM
                            FROM ABBOTT LABORATORIES

CAMBRIDGE, MASS., DECEMBER XX, 2003 - Critical Therapeutics, Inc., a privately
held biopharmaceutical company engaged in the discovery and development of
products for critical care medicine, today announced that it has in-licensed
certain rights to both controlled release and intravenous formulations of
zileuton.

Critical Therapeutics plans to develop a controlled-release formulation of
zileuton, which would allow for less frequent dosing. Abbott's immediate release
formulation of the drug (Zyflo filmtab(R), zileuton tablets) received marketing
approval from the US. Food and Drug Administration (FDA) in December 1996, and
is used for the prevention and continuous treatment of asthma in patients 12 and
older. Zyflo filmtab is not part of this agreement.

"As a drug designed to block a key mediator of inflammation, zileuton directly
complements our cytokine-focused product platform," said Paul D. Rubin, M.D.,
Critical Therapeutics' president and chief executive officer. "We are very
excited about adding zileuton to our product pipeline."

Under the agreement, Critical Therapeutics will assume all regulatory,
manufacturing and marketing responsibility for the controlled-release and
intravenous formulations of zileuton. Abbott will receive milestone and royalty
payments based on product sales. The companies did not disclose financial terms
of the agreement.

Zileuton belongs to a class of drugs known as 5-lipoxygenase (5-LO) inhibitors.
The drug inhibits the production of molecules called leukotrienes, which
contribute to conditions present in and around the airways of asthma patients.
These conditions include swelling, bronchoconstriction and mucus secretion. Dr.
Rubin oversaw the work on Zileuton while supervising global clinical and
pre-clinical development at Abbott from 1987 to 1993.

"This agreement provides us with the potential of near-term revenue from a
product that has already completed a Phase III program. While an
immediate-release, four times a day formulation of zileuton has been previously
approved and is available on the market, our goals for controlled release
zileuton are far greater," Dr. Rubin said. "Based on the clinical results
demonstrated in unpublished studies on the product, we see an opportunity to
broaden the use of

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<PAGE>

CTI - ZILEUTON/2

zileuton through new indications and new formulations. From a cost-benefit
perspective, our licensing agreement with Abbott is the ideal mechanism for both
companies to realize an excellent return from this initiative."

Asthma affects approximately 20.3 million Americans, according to the American
Academy of Asthma Allergy & Immunology. Direct health care costs for the disease
exceed, $8.1 billion annually, with pharmaceuticals representing the largest
share of those costs.

SAFETY INFORMATION

Zyflo Filmtab(R) (zileuton tablets) is not for use in the reversal of acute
asthma attacks.

Patients with active liver disease should not take Zyflo. Liver function tests
are recommended prior to and during treatment with Zyflo.

When taking Zyflo, theophylline dose should be reduced by 50% and appropriately
monitored; patients taking propranolol or warfarin should be monitored and doses
adjusted if necessary.

The only adverse event reported significantly more often by Zyflo patients than
placebo-treated patients was upset stomach (8.2% vs. 2.9%, respectively).

Further information regarding Zyflo, including full prescribing information, is
available from Abbott Medical Information by calling 800-633-9110.

CRITICAL THERAPEUTICS

Critical Therapeutics, Inc. is a privately held biopharmaceutical company
focused on critical care medicine. CTI's mission is the discovery, development
and commercialization of novel therapies for the treatment of acute trauma,
cardiopulmonary disease and infectious and inflammatory illness. The Company's
current research and development portfolio includes HMGB-l, a pro-inflammatory
substance identified as a mediator of TNF-associated tissue damage; development
of small molecule and vagal nerve stimulation approaches to treat inflammation;
and CTI-0l, a proprietary anti-inflammatory drug candidate currently in Phase I
clinical trials. The Company is headquartered in Cambridge, Massachusetts. More
information about CTI is available at www.criticaltherapeutics.com

                                       32<PAGE>
                                                                   Exhibit 10.11

          CONFIDENTIAL MATERIALS OMITTED AND FILED SEPARATELY WITH THE
        SECURITIES AND EXCHANGE COMMISSION. ASTERISKS DENOTE OMISSIONS.

                                LICENSE AGREEMENT

      This License Agreement (the "Agreement") is made as of this 17th day of
March, 2004 between Abbott Laboratories, a corporation organized under the laws
of the State of Illinois, USA, with its principal office at 100 Abbott Park
Road, Abbott Park, Illinois 60064 ("Abbott") and Critical Therapeutics, Inc., a
corporation organized under the laws of the State of Delaware, USA, with its
principal office at 675 Massachusetts Avenue, 14th Floor, Cambridge,
Massachusetts 02139 ("CTI").

                                  INTRODUCTION

      1. Abbott holds the Patents, Know How and Trademark related to the Product
in the Field (all as hereinafter defined);

      2. CTI wishes to obtain, and Abbott wishes to grant to CTI, an exclusive
license under the Patents and Know How related to the Product (as hereinafter
defined) in the Field in order to permit CTI to pursue the marketing,
distribution, sale and commercialization of the Product in the Field; and

      3. CTI wishes to purchase, and Abbott wishes to sell to CTI, all right,
title and interest in and to the Trademark and the goodwill associated
therewith.

      NOW THEREFORE, in consideration of the mutual obligations and promises as
set forth herein, Abbott and CTI do hereby agree as follows:

1. DEFINITIONS. As used in this Agreement, the following terms shall have the
following respective meanings:

      1.1 "Abbott Products" shall mean those Products, including Existing
Products, that have an assigned NDC Code that corresponds to the Original NDA,
as listed by Abbott with the FDA under section 510 of the Act; provided,
however, that Abbott Products shall exclude any Existing Product that has been
relabeled by CTI under Section 3.2(b) hereof.

      1.2 "Act" shall mean the United States Food, Drug, and Cosmetic Act, as
amended, and regulations promulgated thereunder.

      1.3 "Affiliate" shall mean any corporation, company, partnership, joint
venture and/or other entity which controls, is controlled by, or is under common
control of either Party hereto, except for TAP Pharmaceutical Products, Inc. and
its subsidiaries. For purposes of this definition, control shall mean direct or
indirect ownership of at least fifty percent (50%) of the stock or participating
shares entitled to vote for the election of directors (but only as long as such
ownership exists).

      1.4 "cGMP" shall mean the current Good Manufacturing Practices, under 21
CFR Parts 210 and 211, applicable to the manufacturing, processing, packing or
holding of pharmaceutical products in the United States of America.

      1.5 "Commercially Reasonable Efforts" shall mean with respect to the
efforts to be

                                       1
<PAGE>
expended by a Party with respect to any objective, reasonable, diligent, good
faith efforts to accomplish such objective as such Party would normally use to
accomplish a similar objective under similar circumstances, it being understood
and agreed that with respect to the development or commercialization of a
Product, such efforts shall be substantially equivalent to those efforts and
resources commonly used by a mid-size biotechnology company (as applicable to
CTI) or a large pharmaceutical company (as applicable to Abbott) for a similar
pharmaceutical product owned by it or to which it has rights, which product is
at a similar stage in its development or product life and is of similar market
potential taking into account efficacy, safety, approved labeling, the
competitiveness of alternative products in the marketplace, the patent and other
proprietary position of the product, the likelihood of regulatory approval given
the regulatory structure involved, the profitability of the product including
the royalties payable to licensors of patent or other intellectual property
rights, alternative products and other relevant factors. Commercially Reasonable
Efforts shall be determined on a market-by-market basis for a particular
Product, and it is anticipated that the level of effort will be different for
different markets, and will change over time, reflecting changes in the status
of the Product and the market(s) involved.

      1.6 "Confidential Information" shall mean any information, data or
business plans relating to Zyflo, Product, Patents and/or the Know-How which a
Party discloses to the other Party, including, without limitation, the parties
to and terms of this Agreement, except any portion thereof which:

            (i)   is known to the receiving Party at the time of disclosure and
                  documented by written records;

            (ii)  is disclosed to the receiving Party by a Third Party that has
                  a right to make such disclosure;

            (iii) becomes patented by a Party or a Third Party, or becomes
                  published or otherwise part of the public domain as a result
                  of acts by a Third Party; or

            (iv)  is independently developed by or for the receiving Party as
                  evidenced by its written records.

      1.7 "DDMAC" shall mean the FDA Center for Drug Evaluation and Research,
Office of Medical Policy, Division of Drug Marketing, Advertising and
Communications.

      1.8 "Effective Date" shall mean the date of this Agreement set forth in
the opening paragraph hereof.

      1.9 "Existing Product" shall mean all Products remaining in Abbott's
inventory as of the Effective Date, totaling approximately [**] tablets of
Product.

      1.10 "FDA" shall mean the United States Food and Drug Administration.

      1.11 "Field" shall mean research, diagnostics, therapeutics, and services
for all human medical conditions or diseases.

                                       2
<PAGE>
      1.12 "First Commercial Sale" shall mean the first sale of Product in a
country within the Territory by CTI, its Affiliate or sublicensee to any Third
Party after receipt of Regulatory Approval for the applicable country.

      1.13 "IND" shall mean any Investigational New Drug Application and any
amendments thereto filed with the FDA.

      1.14 "Know How" shall mean any proprietary technology (other than the
Patents) owned by or licensed (with a right of sublicense) to Abbott as of the
Effective Date relating to the use of the Product in the Field.

      1.15 "Manufacturing Cost" shall mean the standard cost per unit of
Existing Product, including the cost of raw materials, labor and other direct
and identifiable variable costs and appropriate costs for equipment, tools,
plant operations and plant support services.

      1.16 "NDA" shall mean a New Drug Application, and all supplements and
amendments thereto filed with the FDA, for a Product.

      1.17 "NDC Code" shall mean the National Drug Code for a Product assigned
to each drug product listed under section 510 of the Act.

      1.18 "Net Sales" means, with respect to a Product, the gross amount
invoiced by CTI, its Affiliates and/or its sublicensees on sales or other
dispositions of Product to Third Parties or otherwise directly or indirectly
paid to or earned by CTI with respect to the sale or other disposition of
Product, less the following deductions:

            (a) trade, cash and/or quantity discounts not already reflected in
the amount invoiced, to the extent included in the gross amount invoiced;

            (b) allowances and adjustments credited or payable, including credit
for spoiled, damaged, outdated, recalled and returned Product, to the extent
related to the gross amount invoiced and substantiated by reasonable
documentation;

            (c) freight, distribution, insurance and other transportation
charges incurred in shipping a Product to Third Parties, to the extent
identified as such in the invoice to the Third Party, to the extent included in
the gross amount invoiced;

            (d) amounts repaid or credited by reason of rejections, defects,
recalls or returns or because of chargebacks, refunds, rebates, retroactive
price reductions or billing errors; and

            (e) all tariffs, duties, excises, sales taxes or other taxes
(including VAT) and custom duties imposed upon Products, in each case to the
extent invoiced to customers or otherwise included within gross amounts
invoiced; and

            (f) price reductions imposed by government authorities.

            Such amounts shall be determined from the books and records of CTI,
its Affiliates

                                       3
<PAGE>
and/or its sublicensees, maintained in accordance with United States generally
accepted accounting principles, consistently applied. In the case of any sale of
Products for consideration other than cash, such as barter or countertrade, Net
Sales shall be calculated on the fair market value of the consideration
received. In the event the Product is sold as part of a Combination Product (as
defined below), the Net Sales from the Combination Product, for the purposes of
determining royalty payments, shall be determined by multiplying the Net Sales
of the Combination Product during the applicable royalty reporting period, by
the fraction, A/A+B, where A is the average sale price of the Product when sold
separately in finished form and B is the average sale price of the other
product(s) included in the Combination Product when sold separately in finished
form, in each case during the applicable royalty reporting period or, if sales
of both the Product and the other product(s) did not occur in such period, then
in the most recent royalty reporting period in which sales of both occurred. In
the event that such average sale price cannot be determined for both the Product
and all other products(s) included in the Combination Product, Net Sales for the
purposes of determining royalty payments shall be calculated by multiplying the
Net Sales of the Combination Product by the fraction of C/(C+D) where C is the
fair market value of the Product and D is the fair market value of all other
pharmaceutical product(s) included in the Combination Product. In such event,
CTI shall in good faith make a determination of the respective fair market
values of the Product and all other pharmaceutical products included in the
Combination Product, and shall notify Abbott of such determination and provide
Abbott with sufficient data to support such determination. Abbott shall have the
right to review such determination and supporting data, and to notify CTI if it
disagrees with such determination. If Abbott does not agree with such
determination and if the Parties are unable to agree in good faith as to such
respective fair market values, then such matter shall be referred to dispute
resolution pursuant to Section 13.8. As used above, the term "Combination
Product" means any pharmaceutical product that consists of a Product and other
active compounds and/or active ingredients.

      1.19 "Original IND" shall have the meaning set forth in Section 3.1(b).

      1.20 "Original NDA" shall have the meaning set forth in Section 3.1(b).

      1.21 "Party" shall mean Abbott or CTI, as appropriate in the context, and
"Parties" shall mean Abbott and CTI, collectively.

      1.22 "Patents" shall mean (i) those patents and patent applications
identified on Schedule 1, that are owned or licensed (with a right to
sublicense) to Abbott as of the Effective Date and relate to the Product in the
Field; (ii) any and all patents, including foreign equivalents, which may issue
from said applications; and (iii) any and all substitutions, extensions,
additions, reissues, re-examinations, renewals, divisions, continuations,
continuations-in-part or supplementary protection certificates derived from (i).

      1.23 "Product" shall mean any pharmaceutical product which incorporates
Zyflo or an immediate release formulation of the compound Zileuton for use in
the Field in the Territory, and (a) use of which by CTI, an Affiliate or
sublicensee of CTI would be an infringement of a Valid Claim (as hereinafter
defined) of the Patents but for the grant of the license from Abbott to CTI
hereunder, or (b) embodies Know-How.

      1.24 "Regulatory Approval" shall mean the approval to sell Product granted
by any

                                       4
<PAGE>
Regulatory Authority (as defined below) with authority or jurisdiction over the
testing, manufacture, use, storage, import, transport, promotion, marketing and
sale of a diagnostic, research, therapeutic or service product in a country.

      1.25 "Regulatory Authority" shall mean any federal, national,
multinational, state, provincial or local regulatory agency, department, bureau
or other governmental entity, including, but not limited to, the FDA.

      1.26 "Safety Data Agreement" shall have the meaning set forth in Section
4.2 hereof.

      1.27 "Specifications" shall mean the specifications as of the Effective
Date for the finished dosage form, drug substance and other ingredients and
components, and the manufacture, packaging and labeling of the Existing Product
consistent with the Original NDA.

      1.28 "Term" shall have the meaning set forth in Section 12.1 hereof.

      1.29 "Territory" shall mean the entire world.

      1.30 "Third Party" shall mean any entity other than Abbott and its
Affiliates or CTI and its Affiliates.

      1.31 "Trademark" shall mean the mark ZYFLO and any and all registrations
thereof.

      1.32 "Valid Claim" shall mean a claim of an issued and unexpired patent
whose enforceability has not been effected by any of the following: (i)
irretrievable lapse, revocation, or abandonment, (ii) unenforceable or invalid
by a decision of a court or other governmental agency of competent jurisdiction,
unappealable or un-appealed within the time allowed for appeal, and/or (iii)
disclaimer or admission of invalidity or unenforceability through reissue,
re-examination, opposition, nullity action or invalidation suit response,
disclaimer or otherwise.

      1.33 "Zyflo" shall mean the immediate release formulation of the compound
Zileuton for which Abbott has obtained FDA approval and is exemplified by the
product that is marketed as of the Effective Date within the United States by
the trade name Zyflo.

2. LICENSE GRANTS; TRADEMARK ASSIGNMENT.

      2.1 Exclusive License. Subject to Section 12.4, Abbott hereby grants to
CTI and its Affiliates an exclusive license under the Patents and Know How to
develop, have developed, make, have made, use, have used, import, have imported,
offer to sell, sell, and have sold the Product in the Territory for use in the
Field.

      2.2 Trademark Assignment.

      (a) Subject to the terms and conditions of this Agreement, Abbott hereby
irrevocably and unconditionally sells, transfers, conveys, assigns and delivers
to CTI, and CTI hereby purchases from Abbott, all right, title and interest in
and to the Trademark and the goodwill associated therewith. The assignment of
the Trademark from Abbott to CTI hereunder shall be evidenced by a

                                       5
<PAGE>
Trademark Assignment, in the form attached hereto as Exhibit B ("Trademark
Assignment"). Concurrently with the execution of this Agreement, Abbott shall
execute and have notarized the Trademark Assignment for filing by CTI with the
U.S. Patent and Trademark Office.

      (b) Abbott agrees that following the Effective Date, it will abandon all
use of the Trademark. Notwithstanding anything to the contrary in this
Agreement, Abbott reserves, and CTI hereby grants to Abbott, the exclusive,
royalty-free, worldwide and perpetual right (including the right to sublicense
or assign such right) to use the Trademark in connection with the manufacture,
packaging, labeling, promotion, marketing, offer of sale, sale and import of
products containing Zileuton and/or services related thereto for research,
diagnostics, therapeutics and services relating to humans aged seven (7) years
and under ("Pediatric Use"), except that such right shall be co-exclusive solely
to allow CTI to promote, market, offer to sell, sell and import Zyflo pursuant
to this Agreement without restriction as to patient user age and without
specific promotion for Pediatric Use. Abbott shall maintain the quality of its
products and services that are identified by the Trademark by (1) adhering to
those specific quality control standards that are at least as high as similar
pharmaceutical products sold by Abbott; (2) permitting CTI's authorized
personnel to enter Abbott's premises at reasonable times, upon 48 hours notice
no more than one time per year, to inspect Abbott's facilities and operations in
order to ensure that Abbott is using the Trademark in compliance with this
Agreement; and (3) not modifying the Trademark in any way and not using the
Trademark on any products or services other than as set forth in this Agreement.
If Abbott fails to use the Trademark in compliance with this provision, CTI may
terminate the license granted to Abbott under this Section 2.2(b) upon ninety
(90) days prior written notice if Abbott has not cured such failure within such
90-day period and if such failure to cure is not due to circumstances beyond the
control of Abbott.

      (c) Abbott further agrees to execute any other document and take any
further action reasonably requested by CTI to effectuate the intent and purpose
of this Section 2.2.

      2.3 Right to Sublicense. CTI shall have the right to grant sub-licenses to
the rights granted under Section 2.1. In the event that CTI grants a sublicense,
CTI shall notify Abbott of each such sublicense without unreasonable delay
following any such grant of sublicense and, upon request from Abbott, provide an
appropriately redacted copy of such sublicense. CTI shall remain fully
responsible for the compliance by such sub-licensees with the terms and
conditions of this Agreement as if such sub-licensees were CTI hereunder.
Notwithstanding the foregoing, CTI shall not have the right to grant any
sublicense to the rights granted under Section 2.1 for the purpose of allowing
any Third Party to develop, have developed, make, have made, use, have used,
import, have imported, offer to sell, sell or have sold Product anywhere in the
Territory specifically for Pediatric Use.

      2.4 Right to Appoint Distributors. CTI shall have the right, at all times,
to appoint distributors in the Territory for the sale of the Product. CTI shall
ensure that its distributors act fully in compliance with the terms and
conditions of this Agreement.

      2.5 Covenant Not to Sue. In the event the making, having made, use, offer
for sale, sale or import by CTI, its Affiliates, sublicensees or distributors of
Product, as formulated as of the Effective Date, would infringe during the term
of this Agreement a claim of issued letters patent which is owned by or licensed
to Abbott and which patent is not covered by the grant in Section 2.1,

                                       6
<PAGE>
Abbott hereby covenants not to sue CTI under such issued letters patent solely
for CTI to develop, make, have made, use, sell, offer for sale or import Product
in the Territory and in the Field.

      2.6 Section 365(n) of the Bankruptcy Code. All rights and licenses granted
under or pursuant to any section of this Agreement are, and shall otherwise be
deemed to be, for purposes of Section 365(n) of the Bankruptcy Code licenses of
rights to "intellectual property" as defined under Section 101(35A) of the
Bankruptcy Code. The Parties shall retain and may fully exercise all of their
respective rights and elections under the Bankruptcy Code.

3. TECHNOLOGY TRANSFER; NDA/IND TRANSFER; SUPPLY OF EXISTING PRODUCT.

      3.1 Completion of Technology Transfer and NDA/IND Transfer.

      (a) Abbott will use Commercially Reasonable Efforts to transfer knowledge
of its present technology as identified in Schedule 2 for the manufacture and
validation of Product, including Abbott's active pharmaceutical ingredient
process and the immediate release formulation data, to CTI (or a CTI designee)
to allow CTI to further develop and manufacture Product. Abbott makes no
representation, warranty or guaranty that CTI shall be able to manufacture and
validate Product.

      (b) Consistent with the requirements of 21 CFR 314.72, Abbott will
transfer to CTI the NDA for Zyflo ("Original NDA"); Abbott will also transfer
the complete IND file for Zyflo ("Original IND") and all such available
documentation relevant to the Original IND and/or the Original NDA as is
necessary to enable CTI to assume regulatory responsibility for production of
Zyflo, including all records and reports required to be kept under 21 CFR Parts
210 and 211 that are necessary to enable CTI to assume such responsibility (but
excluding, for the avoidance of doubt, records of Abbott that are not so
necessary such as confidential personnel records, facility design records or
quality assurance batch records). Abbott will use Commercially Reasonable
Efforts to transfer all relevant documents and reports as identified in Schedule
2 to allow CTI to continue to commercialize Product. Notwithstanding the
foregoing, CTI shall provide Abbott a written right of reference allowing Abbott
access to and use of the NDA files for Zyflo solely for purposes of research,
development, manufacture and sale of products and services in the field of
research, diagnostics, therapeutics, and services related to the following: (i)
Pediatric Use of products containing Zileuton, and (ii) cardiovascular and
vascular devices, including, without limitation, stents.

      (c) CTI will reimburse Abbott for its actual costs and expenses in the
technology transfer and NDA/IND transfer contemplated under this Section 3.1.

      3.2 Supply of Existing Product.

      (a) Within fifteen (15) business days of the Effective Date, Abbott shall
deliver to CTI all Existing Products. Subject to Section 7.7, CTI shall pay
Abbott the Manufacturing Cost plus [**]% of the Manufacturing Cost in respect of
Existing Products within thirty (30) days of Abbott's invoice thereof, which
invoice shall be sent to CTI concurrently with the delivery of such Existing
Products to CTI.

                                       7
<PAGE>
      (b) CTI may use the Existing Products for use in the Field in the
Territory, including for research and commercial distribution. CTI shall have
the right to relabel such Existing Products for use in clinical research in
accordance with applicable law and regulations; provided, however, that CTI
shall be responsible for Existing Products which have been relabeled by CTI.

4. FDA; SAFETY; COMPLAINTS.

      4.1 CTI shall comply with all present and future laws, including, without
limitation, the Act, rules, orders, ordinances, regulations, statutes,
requirements, codes, executive orders, rules of common law, and any judicial
interpretations thereof, extraordinary as well as ordinary, of all governmental
authorities, including, without limitation, the FDA. Furthermore, each Party
acknowledges and understands that it has no authority to represent the other
Party in any way before the FDA and as such each Party will not make any
representations or commitments in the other Party's name with the FDA. Abbott
shall prepare and provide to CTI for FDA submission the Original IND and
Original NDA annual reports, to the extent applicable, and Periodic Report for
the period of time during which the Original IND and Original NDA were owned by
Abbott.

      4.2 Each Party warrants that it shall, from the Effective Date until the
Safety Data Agreement (as defined below) is in effect, advise the other of any
serious adverse events relating in any way to Zyflo or the Product and shall
provide a copy of any adverse drug experience report or other report filed with
the FDA related to such events when such serious adverse events are reported or
reportable by it to the Regulatory Authorities. In addition, within ninety (90)
days after the date of this Agreement, the Parties shall use good faith efforts
to enter into an agreement ("Safety Data Agreement") to initiate a process for
the exchange of adverse event safety data in a mutually agreed format, including
but not limited to, postmarketing spontaneous reports received by a Party or its
Affiliates in order to monitor the safety of Zyflo or the Product and to meet
reporting requirements with any applicable Regulatory Authority.

      4.3 For purposes of clarity, Abbott shall be solely responsible for
handling all customer and regulatory complaints or inquiries with respect to
Abbott Products, as well as for making required reports to FDA under 21 CFR
314.80 and 314.81 regarding such Abbott Products. CTI shall reasonably cooperate
with Abbott in handling customer or regulatory complaints or inquiries related
to the Abbott Products. At the time it makes a required report to FDA, Abbott
will provide CTI a copy of such report along with any related complaint file and
documentation of any related investigation. Abbott will also inform CTI of all
product complaints with respect to Abbott Products and the outcome of any
related investigation for complaints that do not lead to reports to FDA.

5. PRODUCT DEVELOPMENT AND COMMERCIALIZATION.

      5.1 Development. CTI shall be solely responsible for development and
registration of Product, and shall use Commercially Reasonable Efforts to obtain
Regulatory Approval for the Product in the United States.

      5.2 Commercialization. Upon obtaining Regulatory Approval for Product in
any country in the Territory, CTI shall use Commercially Reasonable Efforts to
market and sell Product in that country to maximize sales and revenues from such
sales until the controlled release formulation of

                                       8
<PAGE>
Zileuton is commercially launched by CTI.

      5.3 Excuse for Non-Performance. The obligations of CTI with respect to
Product under this Article 5 are expressly conditioned upon the continuing
absence of any serious adverse drug experience (as defined under 21 CFR
314.80(a)) or quality problem relating to the safety or efficacy of the
immediate release formulation of Zileuton, and the obligation of CTI to develop
or market such formulation hereunder shall be delayed or suspended so long as
such condition or event exists. An excuse for non-performance under this Section
5.3 shall only apply in the event CTI notifies Abbott of such condition or event
within fifteen (15) days if its initial occurrence and CTI takes all reasonable
and diligent actions within its ability to remove or resolve such condition or
event so that it no longer exists (including, without limitation, providing to
Abbott a plan designed to diligently remove or resolve such condition or event).

6. FINANCIAL PROVISIONS.

      6.1 Trademark Assignment. In consideration of the assignment of the
Trademark to CTI hereunder, CTI shall pay to Abbott a lump sum payment of Five
Hundred Thousand United States Dollars (US$500,000) on the Effective Date.

      6.2 Milestone Payment. CTI shall make a milestone payment of Seven Hundred
Fifty Thousand United States Dollars (US$750,000) to Abbott within thirty (30)
days after CTI obtains NDA approval for the Product in the United States.

      6.3 Royalties. CTI shall pay to Abbott royalties on Net Sales of Product
at the rates set forth below:

            (i)   [**]% of total annual Net Sales of Product       $[**] - $[**]
                  of

            (ii)  [**]% of total annual Net Sales of Product       $[**] - $[**]
                  of

            (iii) [**]% of total annual Net Sales of Product       $[**] - $[**]
                  of

            (iv)  [**]% of total annual Net Sales of Product       $[**] - $[**]
                  of

            (v)   [**]% of total annual Net Sales of Product       > $[**]
                  of

Royalties shall be based on the total annual Net Sales of Product in all
countries during a particular calendar year for which a royalty is due. By way
of example, if Net Sales in a calendar year equaled $[**], royalties would be
calculated as follows: (i) [**]% of the first $[**] ($[**]), (ii) [**]% of the
next $[**] ($[**]), (iii) [**]% of the next $[**] ($[**]), and (iv) [**]% of the
final $[**] ($[**]), for a total of $[**].

                                       9
<PAGE>
      6.4 Term of Royalty Payments. Royalties shall be paid on a
country-by-country basis for a period of ten (10) years from First Commercial
Sale of Product in each such country. Within thirty (30) days after the date of
First Commercial Sale of Product in each country, CTI shall notify Abbott
thereof in writing.

      6.5 Royalties Payable Only Once. The obligation to pay royalties is
imposed only once with respect to the same unit of a Product.

      6.7 Sales to Affiliates and Sublicensees. Sales of Products between CTI
and its Affiliates or permitted sublicensees, or among such Affiliates and
permitted sublicensees, shall not be subject to royalties under this Article 6,
but in such cases the royalties shall be calculated on the Net Sales by such
Affiliates or sublicensees to a Third Party.

      6.8 Royalty Reports; Royalty Payments. CTI shall deliver to Abbott, within
sixty (60) days after the end of each calendar quarter, sufficiently detailed
written accountings of Net Sales of Products that are subject to royalty
payments due to Abbott in accordance with this Agreement for such calendar
quarter. Such quarterly reports shall indicate gross sales on a
country-by-country basis, the deductions from gross sales used in calculating
Net Sales and the resulting calculation of royalties. When CTI delivers such
accountings to Abbott, CTI shall also deliver all royalty payments due under
Section 6.3 to Abbott for the calendar quarter. With respect to sales of
products invoiced in United States Dollars, the sales and royalties payable
shall be expressed in United States Dollars. With respect to sales of products
invoiced in a currency other than United States Dollars, such foreign currency
amounts shall be converted into United States Dollars at the official average
monthly rates used by Abbott for conversion of its monthly financial statements
- the average B.2.0 rate. The month end B.2.0 rate is determined by taking the
numbers from the 9:00 am CST Reuters screen at the second to last business day
of each month (with the exception of November, when the rate is taken on the
last business day). With the exception of the Euro, British Pound, Australian
Dollar and New Zealand Dollar, the ask price is used. For the four (4)
aforementioned currencies the bid rate is used. An average monthly rate is
determined by taking the calculated average of the prior last business day of
the month book rate and the current last business day of the month book rate.

      6.9 Audits by Abbott. CTI shall keep, and shall require its Affiliates and
sublicensees to keep, complete and accurate records of the latest three (3)
years of sales of Products to which the obligation to pay royalties to Abbott
attach hereunder. For the sole purpose of verifying royalties payable to Abbott,
Abbott shall have the right annually at Abbott's expense to retain an
independent certified public accountant selected by Abbott and reasonably
acceptable to CTI, to review such records in the location(s) where such records
are maintained by CTI, its Affiliates or its sublicensees upon reasonable notice
and during regular business hours and under obligations of confidence. Results
of such review shall be made available to both CTI and Abbott. If the review
reflects an underpayment of royalties to Abbott, such underpayment shall be
promptly remitted to Abbott. If the underpayment is equal to or greater than
five percent (5%) of the royalty amount that was otherwise due, CTI shall pay
all of the reasonable, out-of-pocket costs of such review. If the review
reflects an overpayment of royalties to Abbott, the amount of such overpayment
shall be credited against future royalties owed by CTI to Abbott.

      6.10 Tax Withholding. The Parties shall use their best efforts to reduce
tax withholding on

                                       10
<PAGE>
payments made to Abbott hereunder. Notwithstanding such efforts, if tax
withholdings under the laws of any country are required with respect to payments
to Abbott, CTI shall withhold the required amount and pay it to the appropriate
governmental authority. In such a case, CTI will promptly provide Abbott with
original receipts or other evidence sufficient to allow Abbott to document such
tax withholdings adequately for purposes of claiming foreign tax credits and
similar benefits.

7. REPRESENTATIONS AND WARRANTIES OF ABBOTT.

      7.1 Abbott represents and warrants that it is duly organized, validly
existing and in good standing under the laws of the State of Illinois, that it
has full corporate power and authority to enter into this Agreement and to carry
out its provisions, and that there are no outstanding agreements, assignments or
encumbrances in existence that are inconsistent with the provisions of this
Agreement. Abbott further represents and warrants that it is duly authorized to
execute and deliver this Agreement and to perform its obligations hereunder.

      7.2 Abbott shall not use or register the Trademark in any jurisdiction
anywhere in the world, and shall not use or register any trademark confusingly
similar thereto in the United States for products that are competitive to
Products. Abbott represents and warrants that it has the right to assign the
Trademark in the United States and its corresponding United States registration
and related goodwill to CTI hereunder, that it has not granted any other entity
any rights in the Trademark, that it does not know of any other entity that owns
rights in the Trademark, and that except as set forth in this Agreement, it has
no other pending applications or registrations for the Trademark, or for any
trademark confusingly similar therewith in the United States for products that
are competitive to Products. Abbott represents and warrants that it has not
assigned or granted any license to the Trademark or otherwise encumbered the
Trademark.

      7.3 To the best of Abbott's knowledge, there are no patent infringement
actions, litigation or other proceedings, pending or threatened, by Third
Parties which affect or may affect the Patents.

      7.4 The Patents are a complete list of all patents and patent applications
that are owned by or licensed (with the right to grant sublicenses) to Abbott
and, to the best of Abbott's knowledge, that are necessary and are used for the
manufacture, use or sale of Zyflo. Abbott has not previously assigned,
transferred, licensed, conveyed or otherwise encumbered its right, title and
interest in the Patents.

      7.5 To the best of Abbott's knowledge, as of the Effective Date the
manufacture, use and sale of Zyflo in the Field in the Territory does not
infringe upon any intellectual property rights of any Third Party. As of the
Effective Date, there are no pending or, to the best of Abbott's knowledge,
threatened claims or litigation against Abbott alleging infringement relating to
the Patents, the Trademark or the manufacture, use or sale of Zyflo in the Field
in the Territory.

      7.6 Abbott hereby warrants to CTI that:

      (a) the Existing Products are, as of the Effective Date, (i) in compliance
with the Specifications and cGMP and (ii) warranted to be free of defects in
material and workmanship;

      (b) Subject to Section 11.2 below, Abbott shall refund to CTI as its sole
remedy, CTI's

                                       11
<PAGE>
payment of Manufacturing Costs of any Existing Products that fail to conform
with the warranties set forth in this Section 7.6; and

      (c) all Existing Products supplied to CTI hereunder conform, as of the
Effective Date, with all requirements of the Act and state and local laws, and,
for purposes of Section 303(c)(2) of the Act, the article comprising each
shipment or other delivery of Existing Products made by Abbott to CTI is hereby
guaranteed by Abbott, as of the date of such shipment or delivery, to be, on
such date, not adulterated or misbranded within the meaning of the Act, and not
an article which may not, under any section of the Act, be introduced into
interstate commerce.

8. REPRESENTATIONS AND WARRANTIES OF CTI.

      CTI represents and warrants that it is duly organized, validly existing
and in good standing under the laws of the State of Delaware and is authorized
to conduct business in the Commonwealth of Massachusetts, that it has full
corporate power and authority to enter into this Agreement and to carry out its
provisions, and that there are no outstanding agreements, assignments or
encumbrances in existence that are inconsistent with the provisions of this
Agreement. CTI further represents and warrants that it is duly authorized to
execute and deliver this Agreement and to perform its obligations hereunder.

9. CONFIDENTIALITY AND NON-DISCLOSURE.

      9.1 Confidential Information. Neither Party shall use or disclose any
Confidential Information received by it pursuant to this Agreement except for
the purposes set forth in this Agreement without the prior written consent of
the other. This obligation will continue until seven (7) years following the
expiration or termination of this Agreement.

      9.2 Exceptions. Nothing contained in this Article shall be construed to
restrict the Parties from disclosing Confidential Information as required in
clauses (i) through (iv) below, provided in each case the party requesting to
make such disclosure shall timely inform the other party and use all reasonable
efforts to limit the disclosure and maintain the confidentiality of such
Confidential Information to the extent possible. In addition, the party
requesting to make such disclosure shall permit the other party to attempt to
limit such disclosure by appropriate legal means:

            (i)   to comply with applicable laws, to defend or prosecute
                  litigation, or to comply with governmental regulations;

            (ii)  for audit purposes; or

            (iii) by Court order or other government order or request; or

            (iv)  to its existing and/or potential collaborators, distributors,
                  sublicenses, investors or lenders, provided that such parties
                  or individuals receive such Confidential Information, (x) on a
                  need to know basis only and (y) after an agreement in writing
                  to hold such Confidential Information under the same or
                  greater standards of confidentiality as provided for in this
                  Agreement.

                                       12
<PAGE>
      9.3 SEC Filings. Either Party may disclose the existence and terms of this
Agreement to the extent required to comply with applicable laws, including
without limitation the rules and regulations promulgated by the United States
Securities and Exchange Commission. Notwithstanding the foregoing, prior to
disclosing this Agreement or any of the terms hereof pursuant to this Section
9.3, the Parties will consult with one another on the terms of this Agreement to
be redacted in making any such disclosure. If a Party discloses this Agreement
or any of the terms hereof in accordance with this Section 9.3, such Party
agrees, at its own expense, to seek confidential treatment of portions of this
Agreement or such terms, as may be reasonably requested by the other Party.

      9.4 Publications. Abbott shall have the right to publish the results of
its ongoing scientific studies involving Zileuton, subject to its compliance
with this Article 9. Abbott shall submit to CTI a draft of all such publications
at least thirty (30) days prior to submission for publication and shall take
into serious consideration any requests that CTI may make in order to avoid the
unauthorized disclosure of CTI's Confidential Information and to preserve CTI's
rights to use the Patents and Know How hereunder.

10. PATENT PROSECUTION; INFRINGEMENT.

      10.1 Patents. Abbott shall, during the Term, be responsible for the
filing, prosecution and maintenance of the Patents; provided, however that
Abbott shall consult with CTI prior to taking any such action and shall consider
in good faith the views of CTI regarding the advisability of the proposed
action. In the event that Abbott elects to not continue the filing, prosecution
or maintenance of any of the Patents, then Abbott shall notify CTI in writing of
such election at least sixty (60) days prior to the last available date for
action to preserve such Patents. If CTI elects to continue the filing,
prosecution or maintenance of any such Patent Right, then CTI may do so at its
sole expense; provided, however, that CTI may deduct all out of pocket expenses
and reasonable attorney's fees incurred in preserving such Patent Right from the
royalties due to Abbott.

      10.2 Notification of Claim. If a Third Party notifies CTI or Abbott, or
their respective Affiliates or sublicensees, that any act by CTI, or its
Affiliates or sublicensees, utilizing the Patents in the Field allegedly
infringes any patent rights of such Third Party, CTI or Abbott shall promptly
notify the other in writing.

      10.3 Third Party Infringement.

            (a) Abbott shall have the first right but not the obligation to take
reasonable actions to protect the Patents from infringement in the Field, when,
from its own knowledge or upon notice from CTI, Abbott becomes aware of the
reasonable probability that such infringement or unauthorized use exists in the
Field in the Territory.

            (b) Within ninety (90) days of becoming aware of the infringement of
the Patents in the Field Abbott shall decide whether to institute an
infringement suit or take other appropriate action that it believes is
reasonably required to protect the Patents in the Field. If Abbott fails to
institute such suit or take such action within such ninety (90) day period, then
CTI shall have the right at its sole discretion to institute such suit or other
appropriate action in the name of either Party or both Parties. In either such
event, each Party shall cooperate with the other Party to the extent

                                       13
<PAGE>
reasonably possible, including the joining of suit if necessary or desirable.

            (c) Each Party shall assume and pay all of its own out-of-pocket
costs incurred in connection with any litigation or proceedings undertaken by
such Party described in this Section 10.3, including, without limitation, the
fees and expenses of that Party's counsel.

            (d) In the event that either CTI or Abbott takes action pursuant to
subsection (b) above, the other Party shall cooperate with the Party so acting
to the extent reasonably possible, including the joining of suit if necessary or
desirable. Neither Party shall settle or compromise any claim or proceeding
relating to Patents without obtaining the prior written consent of the other
Party, such consent not to be unreasonably withheld.

            (e) Any recovery obtained by any Party as a result of any proceeding
described in this Section 10.3, by settlement or otherwise, shall be applied in
the following order of priority:

                  (i) first, to reimburse each Party for all litigation costs in
connection with such proceeding paid by that Party and not otherwise recovered
(on a pro rata basis based on each Party's respective litigation costs, to the
extent the recovery was less than all such litigation costs); and

                  (ii) second, in the event that the action was brought by
Abbott, then the remainder of the recovery shall be divided equally between the
Parties; or

                  (iii) third, in the event that the action was brought by CTI,
then the remainder of the recovery shall be multiplied by [**] percent ([**]%)
and then the product of such multiplication shall be treated as Net Sales of
Product in accordance with Section 6.3. After Abbott has been paid its royalty
on such Net Sales of Product in accordance with Section 6.3, then CTI shall be
entitled to the remainder of the recovery.

      10.4 Claimed Infringement. In the event that a Party becomes aware of any
claim that the manufacture, use or sale of the Product by CTI infringes the
intellectual property rights of any Third Party, such Party shall promptly
notify the other Party. In any such instance, the Parties shall cooperate and
shall mutually agree upon an appropriate course of action. Each Party shall
provide to the other Party copies of any notices it receives from third parties
regarding any alleged infringement of Third Party intellectual property rights
and/or any declaratory judgment actions. Such notices shall be provided
promptly, but in no event after more than fifteen (15) days following receipt
thereof.

      10.5 Patent Invalidity Claim. If a Third Party at any time asserts a claim
that any Patent Right is invalid or otherwise unenforceable (an "Invalidity
Claim"), whether as a defense in an infringement action brought by CTI or Abbott
pursuant to Section 10.3 or in an action brought against CTI or Abbott under
Section 10.4, the Parties shall cooperate with each other in preparing and
formulating a response to such Invalidity Claim. Neither Party shall settle or
compromise any Invalidity Claim without the prior written consent of the other
Party, which consent shall not be unreasonably withheld.

      10.6 Patent Marking. CTI agrees to comply with the patent marking statutes
in each country in which Products are sold by CTI, its Affiliates, sublicensees
and/or distributors.

                                       14
<PAGE>

11. INDEMNIFICATION.

      11.1 CTI. CTI agrees to defend Abbott and its Affiliates at its cost and
expense, and will indemnify and hold Abbott and its Affiliates and their
respective directors, officers, employees and agents (the "Abbott Indemnified
Parties") harmless from and against any losses, costs, damages, fees or expenses
arising out of any Third Party claim relating to (i) any breach by CTI of any of
its representations, warranties or obligations pursuant to this Agreement, or
(ii) personal injury from the development, manufacture, use, sale or other
disposition of Product (other than Abbott Products) by CTI, its Affiliates,
sublicensees, distributors or collaborators. In the event of any such claim
against the Abbott Indemnified Parties by any Third Party, Abbott shall promptly
notify CTI in writing of the claim and CTI shall manage and control, at its sole
expense, the defense of the claim and its settlement. The Abbott Indemnified
Parties shall cooperate with CTI and may, at their option and expense, be
represented in any such action or proceeding. CTI shall not be liable for any
litigation costs or expenses incurred by the Abbott Indemnified Parties without
CTI's prior written authorization. In addition, CTI shall not be responsible for
the indemnification of any Abbott Indemnified Party arising from any negligent
or intentional acts by such Abbott Indemnified Party, or as the result of any
settlement or compromise by the Abbott Indemnified Parties without CTI's prior
written consent.

      11.2 Abbott. Abbott agrees to defend CTI and its Affiliates at its cost
and expense, and will indemnify and hold CTI and its Affiliates and their
respective directors, officers, employees and agents (the "CTI Indemnified
Parties") harmless from and against any losses, costs, damages, fees or expenses
arising out of any Third Party claim relating to (i) any breach by Abbott of any
of its representations, warranties or obligations pursuant to this Agreement, or
(ii) personal injury from the development, manufacture, use, sale or other
disposition of Abbott Products by Abbott, its Affiliates, licensees,
distributors or collaborators. In the event of any such claim against the CTI
Indemnified Parties by any Third Party, CTI shall promptly notify Abbott in
writing of the claim and Abbott shall manage and control, at its sole expense,
the defense of the claim and its settlement. The CTI Indemnified Parties shall
cooperate with Abbott and may, at their option and expense, be represented in
any such action or proceeding. Abbott shall not be liable for any litigation
costs or expenses incurred by the CTI Indemnified Parties without Abbott prior
written authorization. In addition, Abbott shall not be responsible for the
indemnification of any CTI Indemnified Party arising from any negligent or
intentional acts by such CTI Indemnified Party, or as the result of any
settlement or compromise by the CTI Indemnified Parties without Abbott prior
written consent.

      11.3 Insurance. Each Party shall, at its sole cost and expense, obtain and
keep in force general liability insurance with product liability limits of Seven
Million Five Hundred Thousand U.S. Dollars (U.S.$7,500,000) in the aggregate and
general liability, including, without limitation coverage for bodily injury,
death and property damage, limits of One Million U.S. Dollars (U.S. $1,000,000)
in the aggregate. Within thirty (30) days after the Effective Date, each Party
shall furnish to the other a certificate of insurance evidencing the insurance
coverage required by this Agreement and providing for at least ten (10) days
prior written notice to the other Party of any cancellation, termination,
material change or reduction of such insurance coverage. During the Term, either
Party may self-insure regarding the insurance requirements in accordance with
this Section, provided such Party maintains a net worth as measured by its
retained earnings in the amount of Five Hundred Million U.S. Dollars (U.S.
$500,000,000).

                                       15
<PAGE>
12. TERMINATION.

      12.1 Term. This Agreement shall be effective as of the Effective Date and
shall remain in effect unless terminated pursuant to Section 12.3 below
("Term").

      12.2 Survival of Licenses. Upon the expiration of CTI's obligations to pay
royalties to Abbott under Section 6.4 with respect to Product in each country,
the license set forth in Article 2 shall be deemed to be perpetual, irrevocable
and fully-paid up with respect to Product in such country.

      12.3 Termination. (a) Either Party may terminate this Agreement by giving
to the other Party prior written notice of not less than sixty (60) days in the
case of a material breach of this Agreement, and such breaching Party shall fail
to cure, or commence action to cure, such breach during such sixty (60) day
period. In the event of a dispute as to whether a material breach has occurred,
the existence of material breach shall be determined using the ADR procedure set
forth in Section 13.8 and Exhibit A. A Party's right to terminate this Agreement
shall only apply if the breaching Party fails to cure such breach in the manner
required by the final judgment of the ADR hearing within sixty (60) days after
that judgment is rendered.

      (b) In the event performance of a party under this Agreement is excused,
delayed, suspended, prevented or deemed not in default pursuant to Section 5.3
or Section 13.13, and the underlying condition, event, cause or circumstances
continue for at least six (6) months, either party shall have the right to
terminate this Agreement by providing the other party written notice thereof.

      12.4 Effect of Termination. Upon termination of this Agreement pursuant to
Section 12.3, then the license granted to CTI under Section 2.1 shall
immediately terminate and CTI shall assign to Abbott all of its right, title and
interest in and to the Trademark (including all associated goodwill) and all
regulatory filings and Regulatory Approvals relating to Product.

      12.5 Survival. Upon termination of this Agreement for any reason, nothing
in this Agreement shall be construed to release either Party from any
obligations that matured prior to the effective date of expiration or
termination; and Sections 12.2, 12.4 and this Section 12.5 and the following
provisions shall expressly survive any such expiration or termination: Article
1, Article 2 (to the extent provided in Section 12.4), Article 6, Article 9,
Article 11 and Article 13.

13. MISCELLANEOUS.

      13.1 Notices. Any notice required or permitted to be given or made under
this Agreement by one of the Parties to the other shall be in writing, delivered
by facsimile (and promptly confirmed by personal delivery, first-class mail U.S.
or courier), addressed to such other Party at its address and facsimile number
indicated below, or to such other address and facsimile as the addressee shall
have last furnished in writing to the addressor and (except as otherwise
provided in this Agreement) shall be effective upon the date on which the
facsimile is sent by the notifying Party.

      If to CTI:              Critical Therapeutics, Inc.
                              675 Massachusetts Avenue

                                       16
<PAGE>
                              14th Floor
                              Cambridge, Massachusetts 02139
                              Attention: Chief Executive Officer
                              FACSIMILE: 617-354-9318

                              with a copy to:

                              Hale and Dorr LLP
                              60 State Street
                              Boston, MA  02109
                              Attention: Steven D. Singer, Esq.
                              FACSIMILE: 617-526-5000

       If to Abbott:          Abbott Laboratories
                              100 Abbott Park Road
                              Dept. R432; Bldg. AP9-1
                              Abbott Park, Illinois 60064
                              Attention: John M. Leonard, MD
                              FACSIMILE: 847-937-3918

                              with a copy to:

                              Abbott Laboratories
                              100 Abbott Park Road
                              Dept. 364; Bldg. AP6D
                              Abbott Park, Illinois 60064
                              Attention:  Senior Vice President
                              and General Counsel
                              FACSIMILE: 847-938-6277

      13.2 Applicable Law. This Agreement shall be governed by and construed in
accordance with the laws of the State of Illinois, excluding its conflict of
laws provisions.

      13.3 Entire Agreement. This Agreement contains the entire understanding of
the Parties with respect to the subject matter hereof. All other express or
implied agreements and understandings, either oral or written, heretofore made
are expressly superseded by this Agreement. This Agreement may be amended, or
any term hereof modified, only by a written instrument duly executed by both
Parties.

      13.4 Counterparts. This Agreement may be executed in two (2) or more
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument. This Agreement may be
executed by facsimiles of the Parties' signatures provided the facsimile
counterpart signature pages are promptly followed by the original signature
pages by overnight delivery in accordance with Section 13.1.

      13.5 Severability. If any provision of this Agreement is deemed
unenforceable, the remainder of the Agreement will not be affected and, if
appropriate, the Parties will attempt to

                                       17
<PAGE>
replace the unenforceable provision with a new provision that, to the extent
possible, reflects the Parties' original intent.

      13.6 Schedules/Exhibits. All Schedules and Exhibits attached hereto are
incorporated herein by this reference as if fully set forth herein.

      13.7 Assignment. Except as expressly provided herein, this Agreement and
any documents executed in connection herewith shall not be assigned by operation
of law or otherwise by CTI without the prior written consent of Abbott, which
consent shall not be unreasonably withheld, and any assignment without such
prior written consent shall be null and void. Abbott shall notify CTI in writing
of its determination to grant or withhold such consent ("Abbott Notice") within
sixty (60) days of the date of CTI's notice to Abbott of the proposed assignment
of this Agreement. In the absence of such Abbott Notice within such sixty-day
period, consent shall be deemed to have been granted by Abbott for purposes of
this Section 13.7. Notwithstanding the foregoing, CTI may make such assignment
without Abbott's consent in connection with a sale of all or substantially all
of the business and assets of CTI to which the subject matter of this Agreement
pertains ("change of control"), to any health care company or group of companies
acting in concert for whom collective worldwide sales of pharmaceutical products
in a calendar year that preceded the change of control were [**] dollars
(US$[**]) or less and provided that CTI provides Abbott with reasonable prior
written notice of such assignment, including, without limitation, documentation
to support such assignee's sales and copies of the assignment and assumption
agreement.

      13.8 Dispute Resolution. The Parties shall attempt to settle any dispute
arising out of or relating to this Agreement in an amicable way. Any
controversy, claim or right of termination for cause which may arise under, out
of, in connection with, or relating to this Agreement, or any breach thereof,
shall be settled according to the Alternative Dispute Resolution provisions
attached hereto as Exhibit A.

      13.9 Independent Contractor. Subject to the terms and provisions of this
Agreement, it is understood that both Parties are independent contractors and
engage in the operation of their own respective businesses and neither Party is
to be considered the agent of the other Party for any purpose whatsoever and
neither Party has any authority to enter into any contract or assume any
obligation for the other Party or to make any warranty or representation on
behalf of the other Party. Each Party shall be fully responsible for its own
employees, servants and agents, and the employees, servants and agents of one
Party shall not be deemed to be employees, servants and agents of the other
Party for any purpose whatsoever.

      13.10 Publicity. Subject to Article 9, neither Party shall issue any press
release or any other form of public disclosure regarding this Agreement or the
relationship of the Parties under this Agreement or use the name of the other
Party in any press release or other publicity ("Agreement Publicity") following
the Effective Date, except as required by a mandatory provision of applicable
law and solely to the extent necessary to comply with such provision of law.

            In the event either Party reaches the conclusion that Agreement
Publicity is required after the Effective Date, such party shall inform the
other Party of its conclusion and provide the other Party with the opportunity
to review the Agreement Publicity and the necessity of making the Agreement
Publicity at least ten (10) business days prior to the planned release of the
Agreement

                                       18
<PAGE>
Publicity and agrees to take such other Party's input and opinion seriously into
account before releasing the Agreement Publicity.

            The Parties acknowledge that either Party's failure to meet the
requirements of this Section 13.10 shall constitute a material breach of this
Agreement, giving the other Party the right, if such breach is not cured within
the applicable cure period, to terminate this Agreement pursuant to Section 12.3
hereof.

      13.11 Day of Performance. If any date for performance hereunder falls on a
Saturday, Sunday or other day which is a holiday under Federal law or the State
of Illinois, the date for such performance shall be the next succeeding business
day.

      13.12 No Consequential Damages. UNLESS RESULTING FROM A PARTY'S WILLFUL
MISCONDUCT OR FROM A PARTY'S BREACH OF ARTICLE VI, NEITHER PARTY HERETO WILL BE
LIABLE FOR SPECIAL, INCIDENTAL, CONSEQUENTIAL, EXEMPLARY, PUNITIVE, MULTIPLE OR
OTHER INDIRECT DAMAGES ARISING OUT OF THIS AGREEMENT OR THE EXERCISE OF ITS
RIGHTS HEREUNDER, OR FOR LOSS OF PROFITS, LOSS OF DATA OR LOSS OF USE DAMAGES
ARISING FROM OR RELATING TO ANY BREACH OF THIS AGREEMENT WHETHER BASED UPON
WARRANTY, CONTRACT, TORT, STRICT LIABILITY OR OTHERWISE, REGARDLESS OF ANY
NOTICE OF SUCH DAMAGES. NOTHING IN THIS SECTION 13.12 IS INTENDED TO LIMIT OR
RESTRICT THE INDEMNIFICATION RIGHTS OR OBLIGATIONS OF EITHER PARTY UNDER THIS
AGREEMENT.

      13.13 Force Majeure. Neither Party shall be held liable to the other Party
nor be deemed to have defaulted under or breached the Agreement for failure or
delay in performing any obligation under the Agreement (except for a Party's
requirement to pay amounts due to the other Party in accordance with this
Agreement) when such failure or delay is caused by or results from causes beyond
the reasonable control of the affected Party including, but not limited to,
embargoes, war, acts of war (whether war be declared or not), insurrections,
riots, civil commotions, strikes, lockouts or other labor disturbances, fire,
floods, or other acts of God, or acts, omissions or delays in acting by any
governmental authority or the other Party. The affected Party shall notify the
other Party of such force majeure circumstances as soon as reasonably practical,
and shall promptly undertake all reasonable efforts necessary to cure such force
majeure circumstances.

      13.14 Exports. CTI acknowledges that the export of technical data,
materials or products is subject to the exporting party receiving any necessary
export authorizations, approvals, permits, licenses and consents from the Bureau
of Industry and Security, and other applicable U.S. government agencies. CTI
agrees not to export or re-export, directly or indirectly, any information,
know-how, technical data, the direct product of such data, samples or product
received or generated under this Agreement in violation of any applicable U.S.
export control laws or governmental regulations. CTI agrees to obtain similar
covenants from its licensees or sublicensees, as the case may be, with respect
to the subject matter of this Section 13.14.

           [REMAINDER OF THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK.]

                                       19
<PAGE>
      IN WITNESS WHEREOF, the Parties have executed this Agreement as of the day
first above written.

ABBOTT LABORATORIES                      CRITICAL THERAPEUTICS, INC.
an Illinois corporation                  a Delaware corporation

By:   /s/ Jeffrey M. Leiden              By:   /s/ Trevor Phillips
      ------------------------------          --------------------------------
Name:  Jeffrey M. Leiden, MD, PhD        Name: Trevor Phillips
Title: President and Chief               Title: Chief Operating Officer
       Operating Officer,
       Pharmaceutical Products Group

                                       20
<PAGE>
                                   SCHEDULE 1

                                    (Patents)

<TABLE>
<CAPTION>
COUNTRY              PATENT NO.     ISSUE DATE            EXPIRATION DATE
<S>                  <C>            <C>                   <C>
Australia            608,804        2 September 1991      9 February 2008
Belgium              279,263        4 August 1993         1 February 2008
Brazil               PI 1100072-4   18 May 1999           10 February 2007
Canada               1,327,204      22 February 1994      22 February 2011
France               279,263        4 August 1993         1 February 2008
Germany              279,263        4 August 1993         1 February 2008
Greece               279,263        4 August 1993         1 February 2008
Italy                279,263        4 August 1993         1 February 2008
Japan                1,862,133      8 August 1994         10 February 2008
Korea                103,306        12 August 1996        16 April 2011
Mexico               179,410        30 August 1995        10 October 2006
Netherlands          279,263        4 August 1993         1 February 2008
Singapore            9791468-3      15 May 1997           1 February 2008
Spain                279,263        4 August 1993         1 February 2008
Sweden               279,263        4 August 1993         1 February 2008
Switzerland          279,263        4 August 1993         1 February 2008
United Kingdom       279,263        4 August 1993         1 February 2008
United States        4,873,259      10 October 1989       10 December 2010
</TABLE>

                                       21
<PAGE>
                                   SCHEDULE 2

                               Technology Transfer

Initiation

     The technology transfer process will be initiated within [**] of the
     agreement being signed ("agreed-to start date") between Abbott Laboratories
     (Abbott) and Critical Therapeutics Inc. (CTI)

Zileuton IR Product Transfer of Technology

     The technology transfer of the IR product will be completed within [**] of
     the agreed-to-start date. Abbott will use commercially reasonable efforts
     to provide the materials, documents, data and reports requested for the
     technology transfer and to answer questions raised by CTI and the appointed
     TPM, SKP, during that period. A one-day meeting will be scheduled between
     CTI and the appointed TPM, SKP, and Abbott technical staff at a date agreed
     upon by the Parties

     [**]

     Regulatory Documents Consistent with the requirements of 21 CFR 314.72
          o    Complete copy of the approved NDA 20-471
          o    All post approval submissions (supplements, PSUR's, advertising
               and promotional submissions to DDMAC)
          o    Annual reports and all records required to be kept under 21CFR
               314.81 (field alert reports, recalls, etc)
          o    Copy of the complete IND file for Zyflo
          o    Copy of all Regulatory correspondence file for the IND and NDA

     TRANSFER SAFETY DATABASE INCLUDING CLINICAL AND POST MARKETING AES PER
     "SAFETY DATA AGREEMENT"

     TRANSFER DATABASE AND STATISTICAL ANALYSES FOR PHASE III CLINICAL TRIALS
     ZILEUTON IR PRODUCT IN ASTHMA
          -    M91-685: Phase III pivotal Study
          -    M92-720: Phase III Pivotal Study

     CLINICAL REPORTS, DATABASE AND STATISTICAL ANALYSES OF OTHER ASTHMA STUDIES
     ONGOING AT THE TIME OF NDA SUBMISSION
          -    M94-199
          -    M92-735
          -    M92-752
          -    M92-868
          -    M92-778
          -    M92-872
          -    M92-763
          -    M90-544
          -    M92-738
          -    M92-779
          -    M92-798
          -    M92-858

     CONTRACTS (OR DESCRIPTION OF ANY COMMITMENTS MADE TO INVESTIGATORS
     CONDUCTING TRIALS WITH ZYFLO)

     OFFICIAL LABELING FILES

                                       22
<PAGE>
                                    EXHIBIT A

                        (Alternative Dispute Resolution)

      The Parties recognize that from time to time a dispute may arise relating
to either Party's right or obligations under this Agreement. The Parties agree
that any such dispute shall be resolved by the Alternative Dispute Resolution
("ADR") provisions set forth in this Exhibit, the result of which shall be
binding upon the Parties.

      To begin the ADR process, a Party first must send written notice of the
dispute to the other Party for attempted resolution by good faith negotiations
between their respective presidents (or their designees) of the affected
subsidiaries, divisions, or business units within twenty-eight (28) days after
such notice is received (all references to "days" in this ADR provision are to
calendar days). If the matter has not been resolved within twenty-eight (28)
days of the notice of dispute, or if the Parties fail to meet within such
twenty-eight (28) days, either Party may initiate an ADR proceeding as provided
herein. The Parties shall have the right to be represented by counsel in such a
proceeding.

1.    To begin an ADR proceeding, a Party shall provide written notice to the
      other Party of the issues to be resolved by ADR. Within fourteen (14) days
      after its receipt of such notice, the other Party may, by written notice
      to the Party initiating the ADR, add additional issues to be resolved
      within the same ADR.

2.    Within twenty-one (21) days following receipt of the original ADR notice,
      the Parties shall select a mutually acceptable neutral to preside in the
      resolution of any disputes in this ADR proceeding. If the Parties are
      unable to agree on a mutually acceptable neutral within such period,
      either party may request the President of the CPR Institute for Dispute
      Resolution ("CPR"), 366 Madison Avenue, 14th Floor, New York, New York
      10017, to select a neutral pursuant to the following procedures:

      (a)   The CPR shall submit to the Parties a list of not less than five (5)
            candidates within fourteen (14) days after receipt of the request,
            along with a Curriculum Vitae for each candidate. No candidate shall
            be an employee, director, or shareholder of either Party or any of
            their subsidiaries or affiliates.

      (b)   Such list shall include a statement of disclosure by each candidate
            of any circumstances likely to affect his or her impartiality.

      (c)   Each Party shall number the candidates in order of preference (with
            the number one (1) signifying the greatest preference) and shall
            deliver the list to the CPR within seven (7) days following receipt
            of the list of candidates. If a Party believes a conflict of
            interest exists regarding any of the candidates, that Party shall
            provide a written explanation of the conflict to the CPR along with
            its list showing its order of preference for the candidates. Any
            Party failing to return a list of preferences on time shall be
            deemed to have no order of preference.

                                       23
<PAGE>
      (d)   If the Parties collectively have identified fewer than three (3)
            candidates deemed to have conflicts, the CPR immediately shall
            designate as the neutral the candidate for whom the parties
            collectively have indicated the greatest preference. If a tie should
            result between two candidates, the CPR may designate either
            candidate. If the Parties collectively have identified three (3) or
            more candidates deemed to have conflicts, the CPR shall review the
            explanations regarding conflicts and, in its sole discretion, may
            either (i) immediately designate as the neutral the candidate for
            whom the Parties collectively have indicated the greatest
            preference, or (ii) issue a new list of not less than five (5)
            candidates, in which case the procedures set forth in subparagraphs
            2(a)-2(d) shall be repeated.

3.    No earlier than twenty-eight (28) days or later than fifty-six (56) days
      after selection, the neutral shall hold a hearing to resolve each of the
      issues identified by the Parties. The ADR proceeding shall take place at a
      location agreed upon by the Parties. If the Parties cannot agree, the
      neutral shall designate a location other than the principal place of
      business of either Party or any of their subsidiaries or affiliates.

4.    At least seven (7) days prior to the hearing, each Party shall submit the
      following to the other Party and the neutral:

      (a)   a copy of all exhibits on which such Party intends to rely in any
            oral or written presentations to the neutral;

      (b)   a list of any witnesses such Party intends to call at the hearing,
            and a short summary of the anticipated testimony of each witness;

      (c)   a proposed ruling on each issue to be resolved, together with a
            request for a specific damage award or other remedy for each issue.
            The proposed rulings and remedies shall not contain any recitation
            of the facts or any legal arguments and shall not exceed one (1)
            page per issue.

      (d)   a brief in support of such Party's proposed rulings and remedies,
            provided that the brief shall not exceed twenty (20) pages. This
            page limitation shall apply regardless of the number of issues
            raised in the ADR proceeding.

      Except as expressly set forth in subparagraphs 4(a) - 4(d), no discovery
      shall be required or permitted by any means, including depositions,
      interrogatories, requests for admissions, or production of documents.

5.    The hearing shall be conducted on two (2) consecutive days and shall be
      governed by the following rules:

      (a)   Each Party shall be entitled to five (5) hours of hearing time to
            present its case. The neutral shall determine whether each Party has
            had the five (5) hours to which it is entitled.

                                       24
<PAGE>
      (b)   Each Party shall be entitled, but not required, to make an opening
            statement, to present regular and rebuttal testimony, documents or
            other evidence, to cross-examine witnesses, and to make a closing
            argument. Cross-examination of witnesses shall occur immediately
            after their direct testimony, and cross-examination time shall be
            charged against the Party conducting the cross-examination.

      (c)   The party initiating the ADR shall begin the hearing and, if it
            chooses to make an opening statement, shall address not only issues
            it raised but also any issues raised by the responding party. The
            responding party, if it chooses to make an opening statement, also
            shall address all issues raised in the ADR. Thereafter, the
            presentation of regular and rebuttal testimony and documents, other
            evidence, and closing arguments shall proceed in the same sequence.

      (d)   Except when testifying, witnesses shall be excluded from the hearing
            until closing arguments.

      (e)   Settlement negotiations, including any statements made therein,
            shall not be admissible under any circumstances. Affidavits prepared
            for purposes of the ADR hearing also shall not be admissible. As to
            all other matters, the neutral shall have sole discretion regarding
            the admissibility of any evidence.

6.    Within seven (7) days following completion of the hearing, each Party may
      submit to the other Party and the neutral a post-hearing brief in support
      of its proposed rulings and remedies, provided that such brief shall not
      contain or discuss any new evidence and shall not exceed ten (10) pages.
      This page limitation shall apply regardless of the number of issues raised
      in the ADR proceeding.

7.    The neutral shall rule on each disputed issue within fourteen (14) days
      following completion of the hearing. Such ruling shall adopt in its
      entirety the proposed ruling and remedy of one of the Parties on each
      disputed issue but may adopt one Party's proposed rulings and remedies on
      some issues and the other Party's proposed rulings and remedies on other
      issues. The neutral shall not issue any written opinion or otherwise
      explain the basis of the ruling.

8.    The neutral shall be paid a reasonable fee plus expenses. These fees and
      expenses, along with the reasonable legal fees and expenses of the
      prevailing Party (including all expert witness fees and expenses), the
      fees and expenses of a court reporter, and any expenses for a hearing
      room, shall be paid as follows:

      (a)   If the neutral rules in favor of one Party on all disputed issues in
            the ADR, the losing Party shall pay 100% of such fees and expenses.

      (b)   If the neutral rules in favor of one Party on some issues and the
            other Party on other issues, the neutral shall issue with the
            rulings a written determination as to how such fees and expenses
            shall be allocated between the Parties. The neutral

                                       25
<PAGE>
            shall allocate fees and expenses in a way that bears a reasonable
            relationship to the outcome of the ADR, with the Party prevailing on
            more issues, or on issues of greater value or gravity, recovering a
            relatively larger share of its legal fees and expenses.

9.    The rulings of the neutral and the allocation of fees and expenses shall
      be binding, non-reviewable, and non-appealable, and may be entered as a
      final judgment in any court having jurisdiction.

10.   Except as provided in paragraph 9 or as required by law, the existence of
      the dispute, any settlement negotiations, the ADR hearing, any submissions
      (including exhibits, testimony, proposed rulings, and briefs), and the
      rulings shall be deemed Confidential Information. The neutral shall have
      the authority to impose sanctions for unauthorized disclosure of
      Confidential Information.

                                       26
<PAGE>
                                    EXHIBIT B

                              Trademark Assignment

      WHEREAS, Abbott Laboratories, an Illinois corporation (the "Assignor"),
has adopted and used certain trademarks, trade names, logos and service marks,
as set forth on Exhibit 1 attached hereto (the "Trademarks"); and

      WHEREAS, pursuant to the License Agreement dated as of ___________, 2004
(the "License Agreement") between the Assignor and Critical Therapeutics, Inc.,
a Delaware corporation ("Assignee"), Assignee has agreed to acquire the
Trademarks and any and all registrations thereof from Assignor; and

      WHEREAS, the execution of this Trademark Assignment by Assignor is one of
the obligations of Assignor pursuant to the License Agreement;

      NOW, THEREFORE, for good and valuable consideration, receipt of which is
hereby acknowledged:

      Assignor does hereby assign, sell and transfer unto the Assignee, free and
clear of all liens and other encumbrances, all right, title and interest in and
to the Trademarks, together with (a) any and all registrations of and
applications to register the Trademarks, to the extent such Trademarks exist,
(b) the goodwill of the business symbolized by and associated with the
Trademarks and any registrations thereof, and (c) the right to sue and recover
for, and the right to profits or damages due or accrued arising out of or in
connection with, any and all past, present and future infringements or dilution
of or damage or injury to the Trademarks or any registrations thereof or such
associated goodwill.

      IN WITNESS WHEREOF, the Assignor, by its duly authorized officer, has
executed this assignment, as an instrument under seal, on this ___ day of
________, 2004.

                                                ABBOTT LABORATORIES

                                                By:
                                                    ---------------------------
                                                Name:
                                                Title:
STATE OF                            )
                                    ) ss.
COUNTY OF                           )

      On this the ___ day of ________, 2004, before me appeared ______________,
the person who signed this instrument, who acknowledged that (s)he is the
__________ of Abbott Laboratories and that being duly authorized (s)he signed
such instrument as a free act on behalf of Abbott Laboratories.

                                                -------------------------------
                                                Notary Public
                                                My commission expires:

                                       27
<PAGE>
                                    Exhibit 1

Mark                    Type                    Registration/Serial No.
----                    ----                    -----------------------

                                       28

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