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                                                                    EXHIBIT 10.4

                                                               Ref.No. 010905-01

                AGREEMENT FOR MANUFACTURE & SALES OF "SUN PRESS"

Ryobi Limited of 762 Mesaki-cho, Fuchu-shi, Hiroshima-ken, 726-8628, Japan
(hereinafter referred to as "Ryobi") and Presstek, Inc. of 55 Executive Drive,
Hudson, New Hampshire 03051-3907, U.S.A. (hereinafter referred to as "Presstek")
mutually agree to execute the following agreements with regard to the
manufacture and sales of "Sun Press" (hereinafter referred to as the
"Agreement").

                                WITNESSETH THAT:

WHEREAS, Presstek and Ryobi have developed the Digital Offset Printing Press
(hereinafter referred to as "Sun Press") according to the "Agreement for Joint
Development, Manufacture & Sales of the "Sun-press" (Ref. No. 981222-01)" signed
by both parties on December 22, 1998 and amended on January 6, 2000 [Ref. No.
991221-01]. Both parties intend to pursue manufacture and sales thereof.

WHEREAS, Presstek shall manufacture the imaging device (Laser Imaging Heads) to
be assembled into Sun Press and supply DI Kits to Ryobi;

WHEREAS, Ryobi shall manufacture the other mechanical portion of Sun Press, and
Ryobi shall be the exclusive assembler of Sun Press;

WHEREAS, Ryobi is entitled to sell such presses with Ryobi brand (hereinafter
referred to as "Ryobi 3404DI Press"), throughout the world;

WHEREAS, Presstek desires to sell such presses worldwide under other brand(s)
through other channel(s) (hereinafter referred to as "OEM Sun Press"), with a
condition that such Presstek's distribution shall be made through no more than
[CONFIDENTIAL TREATMENT REQUESTED] /*/ and with no more than [CONFIDENTIAL
TREATMENT REQUESTED] /*/ and [CONFIDENTIAL TREATMENT REQUESTED] /*/ name in any
country.

NOW, THEREFORE, Both parties agree upon the terms and conditions as stipulated
below.

DEFINITIONS
"Consumables" shall mean printing plates in roll form using Presstek's PEARLdry
technology as identified in EXHIBIT 2 and as modified, updated and/or replaced
during the term of this Agreement which constitute consumable products for use
in the Sun Press.

"DI Kits" shall mean the hardware components, subassemblies, software and
firmware that are supplied by Presstek for the installation of the Presstek DI
Technology in the Ryobi 3404DI Press and OEM Sun Press.

"DI Products" shall mean the DI Kits, consumables for DI Kits and the spare
parts for DI Kits.

/*/ [CONFIDENTIAL TREATMENT REQUESTED] INDICATES MATERIAL THAT HAS BEEN OMITTED
AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED
MATERIAL HAS BEEN FILED WITH THE COMMISSION PURSUANT TO RULE 24B-2 PROMULGATED
UNDER THE SECURITIES AND EXCHANGE ACT OF 1934, AS AMENDED.

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"Presstek DI Technology" shall mean Presstek's current laser imaging
technologies, together with related products, and the components utilized in
converting a conventional printing press into a direct imaging press including,
without limitation, laser diode arrays, computers, electronics, internal plate
cylinder design and roll based plates.

"Presstek Proprietary Rights" shall mean any all patents, patent applications,
copyrights and trademarks, including the trademarks described in Exhibit 3 as
well as all trade secrets, confidential information, software and firmware,
know-how and all other industrial property rights of any type owned or
controlled by Presstek relating to the Presstek proprietary technology described
in Article 3-1(3) and (4) and 3-2.

"Ryobi Proprietary Rights" shall mean any all patents, patent applications,
copyrights and trademarks as well as all trade secrets, confidential information
software and firmware, know-how and all other industrial property rights of any
type owned or controlled by Ryobi relating to the Ryobi proprietary technology
described in Article 3-1(1)and (2) and 3-2.

"Specifications" shall mean the specifications for the Sun Press attached hereto
as Exhibit 1. These Specifications are subject to modification by Presstek (or
Ryobi) from time to time during the ongoing testing and evaluation of these
units in the exercise of its reasonable engineering judgment, with timely
notification to Ryobi (or Presstek) in accordance with the terms of this
Agreement.

"Sun Press" shall mean a four-color, sheet-fed printing press of the A3 format
size manufactured by Ryobi incorporating multi-print cylinder technology and on
press direct imaging of plates. The definition "Sun Press" shall include the
Ryobi 3404DI Press and the OEM Sun Press.

CHAPTER 1.  DEVELOPMENT & MANUFACTURE

ARTICLE 1. MANUFACTURE OF SUN PRESS

As for the manufacture of Sun Press, Presstek shall manufacture DI Kits whereas
Ryobi shall manufacture the other mechanical portions. Ryobi shall be the
exclusive assembler of Sun Press and Ryobi shall test its proper performance as
a total machine before shipment.

ARTICLE 2. TOOLING

As long as both parties intend to sell Sun Press, each party shall bear the
tooling expenses for its own production of products.

ARTICLE 3. PATENT & INTELLECTUAL PROPERTY

1.   (1)  Ryobi retains the sole ownership and all rights to Ryobi's offset
          press technology and any other technology developed by Ryobi.

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     (2)  Except as provided in ARTICLE 3-2, ownership and all rights to any
          technology developed primarily by Ryobi pursuant to the development of
          Sun Press to which only a nominal or non-significant contribution is
          made by Presstek shall be wholly owned by Ryobi.

     (3)  Presstek retains the ownership and all rights to Presstek's technology
          contained in DI Kits, auto plate cylinder, press concept (Heath
          Patent), anilox inking system and any other technology developed
          solely by Presstek.

     (4)  Except as provided in ARTICLE 3-2, ownership and all rights to any
          technology developed primarily by Presstek pursuant to the development
          of Sun Press to which only a nominal or non-significant contribution
          is made by Ryobi shall be wholly owned by Presstek.

     [5]  Except as provided in ARTICLE 3-2, any new technology jointly
          developed by Ryobi and Presstek (the "Joint Technology") will be
          equally and jointly owned by the parties to this Agreement. Ryobi and
          Presstek may use or license to third parties the Joint Technology
          freely without obtaining any approval from the other party PROVIDED,
          HOWEVER, THAT THE JOINT TECHNOLOGY SHALL BE CONSIDERED BOTH PRESSTEK
          CONFIDENTIAL INFORMATION AND RYOBI CONFIDENTIAL INFORMATION AND SHALL
          BE GOVERNED BY THE TERMS AND CONDITIONS OF THE CONFIDENTIALITY
          AGREEMENT. Neither party is required to account to the other for, or
          to pay the other for any portion of, the revenue it earns from
          licensing the Joint Technology. Either party may initiate a patent
          application process (or similar process), and both parties agree to
          share equally in all reasonable costs associated with such patent
          application. In case either party refuses to apply for patent, the
          other party is entitled to apply for patent at the sole cost borne by
          themselves.

2.   Modifications to Existing Technology.

     (1)  Ownership and all rights to any technology, including the DI Products,
          which is a modification or improvement of existing Presstek technology
          or which relates to laser imaging, auto plate feeding, auto inking or
          directly imageable printing plates made by either or both parties in
          the process of the development of Sun Press shall be wholly owned by
          Presstek and shall be considered Presstek Confidential Information and
          shall be governed by the terms and conditions of the Confidentiality
          Agreement. However, such technology shall be licensed to Ryobi under
          the terms of this agreement. The cost for patent application on such
          technology shall be paid by Presstek.

     (2)  The ownership and all rights to any technology which is a modification
          or improvement of existing Ryobi technology (i.e., all technology
          related to Sun Press except existing Presstek technology) made by
          either or both parties in the process of the development of Sun Press
          shall be wholly owned by Ryobi

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          and shall be considered Ryobi Confidential Information and shall be
          governed by the terms and conditions of the Confidentiality Agreement.
          However, such technology shall be licensed to Presstek under the terms
          of this Agreement. The cost for patent application on such technology
          shall be paid by Ryobi.

     (3)  Each party will grant to the other a non-exclusive, unrestricted,
          world-wide, royalty-free, perpetual, assignable and sublicenseable
          right and license to distribute, incorporate, or otherwise use any
          technology which is a modification to existing technology, as set out
          in paragraphs 3-2. 1 and 3-2. 2, herein.

3.   Grant of License.

     (1)  Ryobi hereby grants to Presstek a worldwide, royalty-free right and
          license to distribute, market, lease the object code of the Sun Press
          firmware encompassed within the Ryobi Proprietary Rights to use, sell,
          lease or otherwise transfer the Sun Press, but only pursuant to the
          terms of this Agreement. Presstek shall have the right to grant their
          representatives and intermediary dealers, distributors and customers
          the right to provide necessary information and know-how regarding
          sale, installation, maintenance and servicing of the Sun Press. The
          license shall be a nonexclusive, perpetual, internal use license to
          use the object code version of the firmware on the Sun Press.
          Presstek, its customers, distributors and other owners are not allowed
          to copy, reproduce, modify or grant sublicenses for the software or
          firmware of the Sun Press unless agreed in writing by Ryobi. Neither
          Presstek, its dealers, distributors or customers shall modify, remove,
          disassemble or analyze the source code of the software or firmware.
          Neither Presstek, its dealers, distributors or customers shall remove
          or change copyright or other intellectual property notices included in
          the software or firmware. The license granted in this Agreement
          extends to and includes updates and maintenance modifications.

     (2)  Presstek hereby grants to Ryobi the right and license under the
          Presstek Proprietary Rights to assemble, use, sell, lease, distribute
          or otherwise transfer the Sun Press incorporating DI Products supplied
          by Presstek, but only pursuant to the terms of this Agreement. This
          right and license shall not entitle Ryobi to grant sublicenses; except
          that Ryobi shall have the right to grant their exclusive
          representatives and intermediary distributors the right to provide
          necessary information and know-how regarding sale, installation,
          maintenance and servicing of such equipment. Further, Ryobi shall have
          the right to grant its customers, distributors, and other owners of a
          Sun Press the right and license to use all software and firmware
          encompassed within such DI Products for use in connection with such
          Sun

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          Press, such software and firmware licenses to be in a form approved by
          Presstek. Neither Ryobi, its customers, distributors or other owners
          may copy, reproduce, sublicense or modify the software or firmware
          embedded in the DI Products without Presstek's written consent.
          Neither Ryobi, its dealers, distributors or the customer shall reverse
          engineer, disassemble, decompile or analyze the source code of the
          software or firmware. Neither Ryobi, its dealers, distributors nor any
          customer shall remove or alter any copyright , trademark or other
          intellectual property notice placed in the software or firmware. The
          license granted in this Agreement extends to and includes updates and
          maintenance modifications.

ARTICLE 4. INTELLECTUAL PROPERTY INDEMNITY.

In the event that any suit is brought against either party (the "Indemnified
Party") based on a claim that a product manufactured solely by the other (the
"Indemnifying Party") infringes any registered or validly issued patent,
copyright, trademark or constitutes a misappropriation of trade secret, the
Indemnifying Party agrees that it will: (A) defend the suit at its expense, as
long as Indemnifying Party is notified promptly in writing and is given complete
authority and information required to defend the suit at its expense and is
given complete authority, information and assistance required to defend or
settle the suit or proceeding; and (B) pay all damages and costs finally awarded
against Indemnified Party. Indemnifying Party will not be responsible for any
cost, expense, or compromise made by Indemnified Party without Indemnifying
Party's written consent.

Should the product (or any part thereof) which was manufactured solely by
Indemnifying Party become, or in Indemnifying Party's opinion, be likely to
become, the subject of a claim for infringement, Indemnifying Party may, at its
own expense and option, either (i) procure for Indemnified Party the right to
continue using such product which was produced by Indemnifying Party or (ii)
replace the same with non-infringing material or modify that portion of the
product which was infringing so that it becomes non-infringing (but providing
substantially equivalent functionality).

Indemnifying Party shall not be obligated to defend or be liable for costs and
damages hereunder if the alleged infringement arises out of: (i) non-compliance
with Indemnifying Party's specifications or requirements for the product, (ii)
use or combination of the product with software or hardware not provided by
Indemnifying Party where the infringement would not have arisen without such
combination, (iii) use of other than the latest unmodified release of the
product made available to Indemnified Party by Indemnifying Party if such
infringement would have been avoided by the use of such later release, (iv)
modification of the product after delivery by a party other than Indemnifying
Party, (v) continued use of the product after receiving notice, or having reason
to believe, that such

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product infringes a patent or copyright of a third party, unless prompt written
notice thereof is given to Indemnifying Party, or (vi) a claim based upon any
infringement for a component of the product not manufactured directly by
Indemnifying Party but by third parties. Indemnifying Party shall have no
liability for any claim based upon Indemnified Party's continued activities
after Indemnifying Party has notified Indemnified Party in writing that
Indemnifying Party believes such activities may result in infringement. This
Article 4 states Indemnifying Party's entire obligations regarding infringement.

ARTICLE 5.  QUALITY ASSURANCE

1.   Each OEM Sun Press will be delivered in accordance with the testing and
     specifications detailed in the Ryobi Inspection List attached as Exhibit 4.
     If an OEM Sun Press meets all parameters in the testing, Presstek is
     obligated to accept such OEM Sun Press. However if there is a
     non-conforming parameter, Ryobi is obligated to correct the non-conformance
     prior to Presstek accepting this shipment. The testing and specifications
     may be changed by mutual agreement of the parties. Ryobi will ensure that
     all Sun Presses comply with the applicable safety, electro-magnetic
     emissions and other product standards of those countries as specified in
     Exhibit 1.2(3). In addition Ryobi shall make best efforts to meet various
     regulations required by certain countries, provided that Presstek shall
     bear necessary expenses for that purpose.

2.   Ryobi agrees that Presstek or any third party designated by Presstek may
     perform regular or periodic audits on performance related to product
     testing as specified in this Agreement to insure compliance with Exhibit 4
     attached hereto.

ARTICLE 6. MODIFICATION OF SPECIFICATIONS

     The specifications for the Sun Press have been agreed to and the following
shall apply:

1.   The specifications for Sun Press are described in Exhibit 1.

2.   If Ryobi asks Presstek to modify the agreed specifications for Presstek's
     components, Presstek shall advise Ryobi in writing, of whether Presstek
     accepts such modification as well as any price change for the modification.
     If the requested modification is rejected by Presstek, Presstek shall
     provide Ryobi with a written explanation.

3.   If Presstek asks Ryobi in writing to modify the agreed specifications for
     Presstek's components, Ryobi shall advise Presstek in writing, of whether
     Ryobi accepts such modification as well as any price change for the
     modification. If the requested modification is rejected by Ryobi, Ryobi
     shall provide Presstek with a written explanation.

4.   If Presstek asks Ryobi in writing to modify the agreed specifications for
     Ryobi's

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     components, Ryobi shall advise Presstek in writing, of whether Ryobi
     accepts such modification as well as any price change for the modification.
     If the requested modification is rejected by Ryobi, Ryobi shall provide
     Presstek with a written explanation.

5.   If Ryobi asks Presstek in writing to modify the agreed specifications for
     Ryobi's components, Presstek shall advise Ryobi in writing, of whether
     Presstek accepts such modification as well as any price change for the
     modification. If the requested modification is rejected by Presstek,
     Presstek shall provide Ryobi with a written explanation.

6.   The parties shall cooperate with one another in considering requested
     changes to the agreed specifications and either party's approval of such
     changes shall not be unreasonably withheld. Mutually agreed upon
     reliability engineering changes which are necessitated by unreasonable
     failures of Sun Press components related to DI Kits and Consumables will be
     performed by Presstek at Presstek's expense. Mutually agreed upon
     reliability engineering changes which are necessitated by unreasonable
     failures of Sun Press components other than DI Kits and Consumables will be
     performed by Ryobi at Ryobi's expense.

ARTICLE 7. OTHER DEVELOPMENT PROJECTS

1.   Ryobi agrees that Presstek reserves the right to participate in other
     development projects while Presstek is working with Ryobi on the Sun Press
     Project.

2.   Presstek agrees that Ryobi reserves the right to participate in other
     development projects while Ryobi is working with Presstek on the Sun Press
     Project.

3.   Neither party shall use any technology which is the property of the other
     party for any other development projects.

4.   Any new development project between Presstek and Ryobi shall be subject to
     the negotiation of a new definitive agreement between the parties.

CHAPTER 2.  DI KITS (DIRECT IMAGING KITS)

ARTICLE 8. SUPPLY OF DI KITS

1.   Ryobi shall purchase DI Kits from Presstek for manufacturing Ryobi 3404DI
     Presses.

2.   Presstek shall transfer Presstek DI Kits to Ryobi for manufacturing OEM Sun
     Presses on a consignment basis at no cost.

3.   Ryobi will furnish a 12-month rolling unit forecast of DI Kits for Presstek

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     updated quarterly, with the first 3 months firm. The initial prices of the
     spare parts are as set forth on EXHIBIT 7.

4.   Ryobi shall submit to Presstek individual firm order sheet(s) for DI Kits
     of Ryobi 3404DI at least thirty (30) days prior to the corresponding
     shipment date(s) requested by Ryobi, in which any and all descriptions as
     to the DI Kits for Ryobi 3404DI to be purchased by Ryobi shall be listed,
     including but not limited to items such as quantities, shipment dates,
     destinations, and names of buyers thereof. Providing that OEM SUN Press
     shipment will be at the end of the Ryobi production month, or early the
     next month, Ryobi shall receive DI Kits for OEM Sun Presses on a
     consignment basis from Presstek at least [CONFIDENTIAL TREATMENT REQUESTED]
     /*/ days before the beginning of the month when production occurs.

5.   Within seven (7) days after receipt of each individual firm order sheet,
     Presstek shall provide Ryobi with a written document by tele-fax or other
     written instrument, confirming or rejecting the order(s). In the absence of
     written rejection by Presstek of such an order within seven (7) days after
     its receipt, Presstek shall be conclusively deemed to have accepted the
     same. Any and all Purchase Order Schedules and each individual firm order
     sheet shall be subject to the terms and conditions of this Agreement unless
     otherwise agreed upon by the parties.

ARTICLE 9. PRICES AND PAYMENTS OF DI KITS

1.    The Base Price of the DI Kits is defined in Exhibit 5. Changes in the Base
      Price will be based upon valid Yen/Dollar fluctuations in accordance with
      Exhibit 6. Unless otherwise expressly agreed upon, said prices shall be
      F.O.B. point of shipment and exclusive of customs duties and applicable
      sales taxes, if any.

2.    Unless otherwise expressly agreed upon, Ryobi shall open a standby Letter
      of Credit for Presstek in the amount of [CONFIDENTIAL TREATMENT REQUESTED]
      /*/ to cover DI Kits and their spare parts and Ryobi will make payments on
      an open account basis, on net [CONFIDENTIAL TREATMENT REQUESTED] /*/ days
      terms.

3.    Ryobi shall bear shipping charges, duties and taxes of DI Kits for Ryobi
      3404DI Presses. However, Presstek shall bear shipping charges, duties and
      taxes of DI Kits for OEM Sun Presses.

ARTICLE 10. MANAGEMENT OF CHANGE IN DESIGN

1.   Presstek shall notify Ryobi of any future change in DI Kits which would
     affect the form, fit, interchangeability or function of DI Kits, including
     any price change.

2.   Ryobi has the right to approve or reject any proposed change, such approval
     not to be unreasonably withheld, conditioned or delayed.

/*/ [CONFIDENTIAL TREATMENT REQUESTED] INDICATES MATERIAL THAT HAS BEEN OMITTED
AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED
MATERIAL HAS BEEN FILED WITH THE COMMISSION PURSUANT TO RULE 24B-2 PROMULGATED
UNDER THE SECURITIES AND EXCHANGE ACT OF 1934, AS AMENDED.

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3.   If Ryobi rejects such change, faithful discussion shall be taken place to
     reach alternative solution.

4.   If the change is approved, Presstek is required to offer the schedule for
     the implementation of such change.

5.   Presstek shall inform Ryobi of all necessary information regarding
     mandatory retrofits due to Presstek's change.

ARTICLE 11. WARRANTY OF DI KITS

1.   Presstek represents and warrants that DI Kits shall be free from defects in
     function, quality, material and workmanship for a period of [CONFIDENTIAL
     TREATMENT REQUESTED] /*/ months from the date of installation to the end
     user or [CONFIDENTIAL TREATMENT REQUESTED] /*/ months from the date of
     shipment by Presstek to Ryobi whichever is earlier. Presstek also warrants
     that the spare parts of DI Kits (except consumable items) shall be free
     from defects in function, quality, material and workmanship for
     [CONFIDENTIAL TREATMENT REQUESTED] /*/ months from the date of receipt
     thereof by a customer from Ryobi or Ryobi's distributor and further
     warrants that DI Kits meet the specifications, samples or other drawings as
     agreed upon between Presstek and Ryobi. When Ryobi finds a breach of the
     above warranty, Ryobi shall inform Presstek in writing of any such breach
     with supporting evidence. Upon request of Presstek, Ryobi shall return
     defective products or part for inspection. Presstek shall, at the option of
     Presstek, either (i) replace the DI Kits in breach of the warranty, (ii)
     deduct the payment to that extent or (iii) credit to future invoices. The
     warranty of Presstek shall be limited to the above mentioned.

2.   Presstek shall have the obligation to supply spare parts for DI Kits for
     minimum [CONFIDENTIAL TREATMENT REQUESTED] /*/ years from the date of
     expiration or termination of this Agreement.

3.   PRESSTEK MAKES NO REPRESENTATION OR WARRANTY WITH RESPECT TO THE DI KITS
     OTHER THAN THOSE SET FORTH IN THIS AGREEMENT. THE WARRANTY STATED HEREIN IS
     EXPRESSLY IN LIEU OF ALL OTHER WARRANTIES, EXPRESS OR IMPLIED, INCLUDING,
     BUT NOT LIMITED TO, ANY EXPRESS OR IMPLIED WARRANTY OF MERCHANTABILITY OR
     FITNESS FOR A PARTICULAR PURPOSE, AND SUCH WARRANTY CONSTITUTES THE ONLY
     WARRANTY MADE BY PRESSTEK WITH RESPECT TO THIS AGREEMENT OR THE DI KITS TO
     BE SUPPLIED HEREBY.

ARTICLE 12. PRODUCT LIABILITY OF DI KITS

Presstek shall indemnify, defend and hold harmless Ryobi, its distributors or
agents, directors, officers or affiliates from any or all claims, demands,
suits, losses, liabilities or expenses by third parties who were injured and/or
damaged to their property as a result of any defect of DI Kits unless such
claims, demands, suits, losses, liabilities or expenses by third parties are
attributed to Ryobi or the Sun Press except the DI Kit. Each party shall
promptly and cooperatively respond

/*/ [CONFIDENTIAL TREATMENT REQUESTED] INDICATES MATERIAL THAT HAS BEEN OMITTED
AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED
MATERIAL HAS BEEN FILED WITH THE COMMISSION PURSUANT TO RULE 24B-2 PROMULGATED
UNDER THE SECURITIES AND EXCHANGE ACT OF 1934, AS AMENDED.

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to the other party's request to investigate the cause of such accident, should
it occur, in order to resolve such product liability related issues. Presstek
shall be required to maintain adequate property, casualty and product liability
insurance to cover damage to property or personal injury which arise at a
customer's location and is caused by any defect or failure of the DI Kits
manufactured by Presstek.

ARTICLE 13. INSPECTION BY RYOBI

Ryobi shall inspect the appearance and quantity of DI Kits within [CONFIDENTIAL
TREATMENT REQUESTED] /*/ days of the receipt of DI Kits at its warehouses or
other designated places of Ryobi. Ryobi shall inform Presstek in writing of any
shortage or defects, which have been found by the appearance inspection with
supportive evidence. Presstek shall, at the option of Presstek, either (i) send
the quantity of DI Kits and their spare parts to fill shortage or replacements
of defective DI Kits and their spare parts, (ii) deduct the payment to that
extent or (iii) credit to future invoices. Presstek's warranty under ARTICLE 11
shall survive the passing of this inspection.

CHAPTER 3.  DISTRIBUTION OF DI PRODUCTS TO RYOBI DISTRIBUTORS

ARTICLE 14. DISTRIBUTION OF DI PRODUCTS

1.   Ryobi distributors may purchase DI Products directly from Presstek

2.   Distributors are entitled to purchase PEARLdry Plus plate free surface
     freight for "skid lot" purchases ([CONFIDENTIAL TREATMENT REQUESTED] /*/
     Boxes minimum purchase per order).

ARTICLE 15. [CONFIDENTIAL TREATMENT REQUESTED] /*/

ARTICLE 16. SPARE PARTS OF DI KITS

Ryobi and Presstek must maintain an adequate stock of spare parts to satisfy the
needs of the customers, distributors and factory.

CHAPTER 4.  DISTRIBUTION OF SUN PRESS

ARTICLE 17.  DISTRIBUTION OF RYOBI 3404DI PRESS

Ryobi shall sell, market, lease, promote, distribute and otherwise commercially
exploit the Ryobi 3404DI Press in all countries worldwide.

/*/ [CONFIDENTIAL TREATMENT REQUESTED] INDICATES MATERIAL THAT HAS BEEN OMITTED
AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED
MATERIAL HAS BEEN FILED WITH THE COMMISSION PURSUANT TO RULE 24B-2 PROMULGATED
UNDER THE SECURITIES AND EXCHANGE ACT OF 1934, AS AMENDED.

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ARTICLE 18. DISTRIBUTION OF OEM SUN PRESS

Ryobi shall manufacture and sell the OEM Sun Press only to Presstek. Presstek
may re-sell, lease, market, distribute, promote and otherwise commercially
exploit the OEM Sun Press worldwide under other brand(s) through Presstek's
channel(s). Such distribution of the OEM Sun Press shall not be made through
more than [CONFIDENTIAL TREATMENT REQUESTED] /*/ and with more than
[CONFIDENTIAL TREATMENT REQUESTED] /*/ and with more than [CONFIDENTIAL
TREATMENT REQUESTED] /*/ name in any country. Each OEM Sun Press shall have the
Ryobi name label and country of origin placed on the non-operator side of the
press. The cosmetics and model name for any OEM Sun Press must be different from
the Ryobi 3404DI Press. To prevent interchangeability, the Plate Roll Cassettes
furnished by Presstek on the Ryobi 3404DI Presses and the OEM Sun Presses will
be different.

ARTICLE 19. PROCEDURE OF ORDERING

1.   Presstek shall furnish a 12-month rolling unit forecast of OEM Sun Presses
     to be purchased from Ryobi, updated quarterly, with the first 3 months
     firm.

2.   In accordance with Purchase Order Schedule, Presstek shall submit to Ryobi
     every [CONFIDENTIAL TREATMENT REQUESTED] /*/ months an individual firm
     order sheet(s) at least [CONFIDENTIAL TREATMENT REQUESTED] /*/ days prior
     to the corresponding shipment date(s) requested by Presstek, in which any
     and all descriptions as to the OEM Sun Presses to be purchased from Ryobi
     shall be listed, including but not limited to items such as quantities,
     shipment dates, destinations, and names of buyers thereof. Also, Ryobi
     shall receive DI Kits for OEM Sun Presses on a consignment basis from
     Presstek at least [CONFIDENTIAL TREATMENT REQUESTED] /*/ days before the
     beginning of the month when the production occurs. Ryobi shall ship OEM SUN
     Press at end of Ryobi Production month or early the next month.

3.   Within seven (7) days after receipt of each individual firm order sheet,
     Ryobi shall provide Presstek with a written document by tele-fax or other
     written instrument, confirming or rejecting the order(s). Ryobi may reject
     such an order only if it would not conform with the terms and conditions of
     this Agreement or if Ryobi would be unable to fill such an order due to
     such causes beyond the reasonable control of Ryobi as may be considered a
     Force Majeure under Article 35, herein. In the absence of written rejection
     by Ryobi of such an order within seven (7) days after its receipt, Ryobi
     shall be conclusively deemed to have accepted the same. Any and all
     Purchase Order Schedules and each individual firm order sheet shall be
     subject to the terms and conditions of this Agreement unless otherwise
     agreed upon by the parties hereto.

4.   All OEM Sun Presses manufactured by Ryobi for Presstek channel(s) shall be
     sold to Presstek. The following general principles shall apply to all OEM
     Sun Presses purchased by Presstek:

     (1)  Presstek shall transfer DI Kits to Ryobi on a consignment basis at no
          cost.

/*/ [CONFIDENTIAL TREATMENT REQUESTED] INDICATES MATERIAL THAT HAS BEEN OMITTED
AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED
MATERIAL HAS BEEN FILED WITH THE COMMISSION PURSUANT TO RULE 24B-2 PROMULGATED
UNDER THE SECURITIES AND EXCHANGE ACT OF 1934, AS AMENDED.

                                       11
<PAGE>

     The title to DI Kits shall belong to Presstek even after the delivery
     thereof to Ryobi.

     (2)  Shipping charges, import duties and other expenses to import DI Kits
          to Ryobi shall be borne by Presstek.

     (3)  Ryobi shall sell the finished products to Presstek at Ryobi price and
          Presstek shall sell the products to Presstek's customer (hereinafter
          referred to as "Presstek Customer").

5.   Ryobi shall furnish 3404DI-operation manual, 3404DI-service manual, 3404DI
     parts list and 3404DI-electrical service manual in English to Presstek.

ARTICLE 20. MANAGEMENT OF CHANGE

1.   Ryobi shall notify Presstek of any future changes in Ryobi Design which
     would affect the form, fit, interchangeability or function of Ryobi Design,
     including any price changes.

2.   Presstek has the right to approve or reject any proposed change.

3.   If Presstek rejects such change, faithful discussion shall be taken place
     to reach alternative solution.

4.   If the change is approved, Ryobi is required to offer the schedule for the
     implementation of such change.

5.   Ryobi shall inform Presstek of all necessary information regarding
     mandatory retrofits due to Ryobi's change.

ARTICLE 21. CUSTOMER  ASSISTANCE

1.   Presstek is solely responsible for the installation, warranty and
     post-warranty service on the OEM Sun Presses. Any work requested from Ryobi
     by Presstek will be charged by Ryobi at the customary rates for this type
     of service including traveling expenses.

2.   Ryobi is solely responsible for the installation and warranty and
     post-warranty service on the Ryobi 3404DI Presses, including DI Kits sold
     through Ryobi distributors under terms and conditions of this Agreement
     unless otherwise agreed by the parties. Any work requested from Presstek by
     Ryobi will be charged by Presstek at the customary rates for this type of
     service including traveling expenses. However, Presstek is responsible for
     supplying spare parts and technical information for DI Kits directly to
     Ryobi's distributors. Reference to Distribution Agreement.

ARTICLE 22. DETERMINATION OF SPECIFICATIONS

1.   During the term of this Agreement, Presstek may order products for Presstek
     Customer to Ryobi whose specifications have been established by Presstek
     and Ryobi.

                                       12
<PAGE>

2.   Basic Specifications for Sun Press are described in Exhibit 1. And
     specifications for OEM Sun Presses shall be based on this Exhibit 1 with
     some limited alterations which may increase the price.

3.   Additional performance Specifications for OEM Sun Presses may be added upon
     mutual agreement to Exhibit 1 at a later date.

ARTICLE 23. PRICES AND PAYMENTS OF OEM SUN PRESSES

1.   The Base Price of the Sun Presses and Options is defined in Exhibit 5.
     Changes in the Base Price will be based upon valid Yen/Dollar fluctuations
     in accordance with Exhibit 6.Unless otherwise expressly agreed upon, said
     prices shall be F.O.B. port of Japan and exclusive of customs, duties and
     applicable sales taxes, if any.

2.   Title and risk of loss of OEM Sun Presses shall pass to Presstek from Ryobi
     FOB Japan Port of Export.

3.   Unless otherwise expressly agreed upon, Presstek shall open a standby
     Letter of Credit for Ryobi in the amount of [CONFIDENTIAL TREATMENT
     REQUESTED] /*/ to cover OEM Sun Presses and their spare parts and Presstek
     will make payments on an open account basis, on net [CONFIDENTIAL TREATMENT
     REQUESTED] /*/ days terms.

4.   Presstek shall bear all shipping charges and duties of OEM Sun Presses.

ARTICLE 24. CARGO INSURANCE FOR OEM SUN PRESSES

With respect to shipments ex FOB, Presstek shall arrange insurance from a point
within the country of shipment to a point within the country of destination.

ARTICLE 25. INSPECTION

Presstek shall inspect on the appearance and quantity of OEM Sun Presses within
[CONFIDENTIAL TREATMENT REQUESTED] /*/ days of the receipt of OEM Sun Presses at
their warehouses or other designated places of Presstek. Presstek shall inform
Ryobi in writing of any shortage or defects, which have been found by the
appearance inspection with supportive evidence. Ryobi shall, at the option of
Ryobi, either (i) send the quantity of OEM Sun Presses and their spare parts to
fill shortage or replacements of defective OEM Sun Presses and their spare
parts, (ii) deduct the payment to that extent or (iii) credit to future
invoices. Ryobi's warranty under ARTICLE 26 shall survive the passing of this
inspection.

ARTICLE 26. WARRANTY OF SUN PRESSES

1.   Ryobi represents and warrants that Sun Presses and spare parts (except
     consumable items) shall be free from defects in function, quality, material
     and workmanship for a period of [CONFIDENTIAL TREATMENT REQUESTED] /*/
     months from the date of installation of the press to the end-user or
     [CONFIDENTIAL TREATMENT REQUESTED] /*/ months from the date of shipment by
     Ryobi to Presstek or an authorized distributor of Presstek, whichever is
     earlier, and Ryobi also hereby warrants that Sun Presses meet the
     specifications, samples or other drawings as agreed upon between Presstek

/*/ [CONFIDENTIAL TREATMENT REQUESTED] INDICATES MATERIAL THAT HAS BEEN OMITTED
AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED
MATERIAL HAS BEEN FILED WITH THE COMMISSION PURSUANT TO RULE 24B-2 PROMULGATED
UNDER THE SECURITIES AND EXCHANGE ACT OF 1934, AS AMENDED.

                                       13
<PAGE>

     and Ryobi. Where Presstek finds a breach of the above warranty, Presstek
     shall inform Ryobi in writing of any such breach with supportive evidence.
     Upon request of Ryobi, Presstek shall return defective Sun Presses or parts
     for inspection. Ryobi shall send spare parts to replace defective parts
     under warranty free of charge, or, if the level of defect is beyond the OEM
     Customer's capability, Ryobi shall visit and inspect such presses and Ryobi
     and Presstek will jointly decide how to resolve the issue.

2.   Ryobi shall have the obligation to supply the spare parts of Sun Presses
     for minimum [CONFIDENTIAL TREATMENT REQUESTED] /*/ years from the date of
     expiration or termination of this Agreement.

3.   RYOBI MAKES NO REPRESENTATION OR WARRANTY WITH RESPECT TO THE SUN PRESS
     OTHER THAN THOSE SET FORTH IN THIS AGREEMENT. THE WARRANTY STATED HEREIN IS
     EXPRESSLY IN LIEU OF ALL OTHER WARRANTIES, EXPRESS OR IMPLIED, INCLUDING,
     BUT NOT LIMITED TO, ANY EXPRESS OR IMPLIED WARRANTY OF MERCHANTABILITY OR
     FITNESS FOR A PARTICULAR PURPOSE, AND SUCH WARRANTY CONSTITUTES THE ONLY
     WARRANTY MADE BY RYOBI WITH RESPECT TO THE SUN PRESSES TO BE SUPPLIED
     HEREBY.

ARTICLE 27. PRODUCT LIABILITY OF SUN PRESSES; INSURANCE

1.   Ryobi shall indemnify, defend and hold harmless Presstek, its distributors,
     customers, directors, officers or affiliates from any or all claims,
     demands, suits, losses, liabilities or expenses by third parties who were
     injured and/or damaged to their property as a result of any defect of Sun
     Presses unless such claims, demands, suits, losses, liabilities or expenses
     by third parties are attributed to the negligence of Presstek or Presstek
     Customer. Each party shall promptly and cooperatively respond to the other
     party's request to investigate the cause of such accident, should it occur,
     in order to resolve such product liability related issues.

2.   Ryobi shall be required to maintain adequate property, casualty and product
     liability insurance to cover damage to property or personal injury which
     arise at a customer's location and is caused by any defect or failure of
     the Sun Press manufactured by Ryobi. Ryobi shall carry such insurance
     during the term of this Agreement and for a period not less than
     [CONFIDENTIAL TREATMENT REQUESTED] /*/ years after termination, and in each
     case shall be required to name Presstek as an additional insured on a
     non-contributory basis if possible or to do whatever is necessary to ensure
     that the coverage inures to the benefit of Presstek, its distributors and
     customers.

ARTICLE 28. USE OF TRADEMARKS

1.   Ryobi may use the trademarks or tradenames owned by Presstek or trademarks
     or tradenames specified by Presstek and included in Exhibit 3

/*/ [CONFIDENTIAL TREATMENT REQUESTED] INDICATES MATERIAL THAT HAS BEEN OMITTED
AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED
MATERIAL HAS BEEN FILED WITH THE COMMISSION PURSUANT TO RULE 24B-2 PROMULGATED
UNDER THE SECURITIES AND EXCHANGE ACT OF 1934, AS AMENDED.

                                       14
<PAGE>

     (hereinafter referred to as "Trademark") for the purposes of advertising,
     promoting, manufacturing and distribution of Sun Presses hereunder. In
     addition, Ryobi shall place the DI Logo on all Sun Presses in a mutually
     agreed upon location on each such press.

2.   In respect of Sun Presses or containers thereof, Ryobi shall not use any
     Trademark in such a manner as would threaten distinguishability,
     identifiability or effectiveness thereof or use other trademarks in
     combination with Trademark.

3.   Ryobi hereby acknowledges that Trademark used hereunder shall exclusively
     belong to Presstek or Customer. Ryobi shall not use, register or apply any
     trademarks which are the same or confusingly similar to the Trademarks
     except for the implementation of this Agreement.

4.   Ryobi's name shall be placed on the electrical specification plate of the
     non-operator side of the OEM Sun Press in the format previously agreed.

5.   Upon termination or suspension of this Agreement, Ryobi shall cease use of
     all Trademarks except as authorized in writing by Presstek.

CHAPTER 5.  GENERAL

ARTICLE 29. CONFIDENTIALITY

Both parties shall keep all confidential information which is transmitted
between the parties in connection with this agreement confidential under the
terms of the Confidentiality Agreement between the parties attached hereto as
Exhibit 8. The Confidentiality Agreement attached as Exhibit 8 supercedes and
replaces the Confidentiality Agreement dated as of December 22, 1998 that was
previously executed by the parties.

ARTICLE 30. DURATION

This Agreement shall become effective on the date first above written and,
unless sooner terminated pursuant to the provisions herein contained, continue
to be in effect for [CONFIDENTIAL TREATMENT REQUESTED] /*/ years. Unless either
party gives the other party notice of termination in writing at least 180 days
prior to the expiration date of this Agreement or any extension hereof, this
Agreement shall be automatically renewed thereafter on a year to year basis
successively.

ARTICLE 31. TERMINATION

1.   In the event of a Material Breach of this Agreement by either party, the
     party not in breach of this Agreement may suspend performance hereunder or
     terminate this Agreement by written notice to the other party if the breach
     by the other party shall not have been corrected by the party in breach
     within [CONFIDENTIAL TREATMENT REQUESTED] /*/ days after written notice is
     given by the party not in breach

/*/   [CONFIDENTIAL TREATMENT REQUESTED] INDICATES MATERIAL THAT HAS BEEN
      OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH
      OMITTED MATERIAL HAS BEEN FILED WITH THE COMMISSION PURSUANT TO RULE 24B-2
      PROMULGATED UNDER THE SECURITIES AND EXCHANGE ACT OF 1934, AS AMENDED.

                                       15
<PAGE>

     complaining of such breach by the other party. For purposes of this
     Agreement, a "Material Breach" shall mean such breach of rights and
     obligations by a party under Articles 4 (Intellectual Property Indemnity),
     11 (Warranty of DI Kits), 17 (Distribution of Ryobi 3404DI Press), 18
     (Distribution of OEM Sun Press), 26 (Warranty of Sun Presses), 27 (Product
     Liability of Sun Presses), 28 (Use of Trademarks) or 29 (Confidentiality)
     which can reasonably be expected to put the other party to this Agreement
     in danger of sustaining loss in excess of [CONFIDENTIAL TREATMENT
     REQUESTED] /*/.

2.   In the event of payment default by a party more than forty-five days past
     due, the non-defaulting party may suspend performance of its obligations
     until such payment default is cured.

3.   Any right to suspend performance by the non-breaching party does not
     terminate the continuing performance obligations of the breaching party.

ARTICLE 32. STEPS AFTER TERMINATION

1.   If this Agreement is expired or terminated as provided herein, Both parties
     shall return any samples, specifications, drawings or other confidential
     information provided by either party to the other party. Any individual
     sales contracts which have been made prior to such termination or
     expiration date shall continue to be effective irrespective of such
     termination or expiration.

2.   In the case that this Agreement is terminated by the default or breach of
     this Agreement by either party, the terminating party may claim for damages
     to the other party.

3.   The provisions of ARTICLES 3, 4, 11, 12, 26, 27, 28, 29, 31, 32, 33, 34,
     39, 40, 41, 44 and 45 of this Agreement shall survive after the expiration
     or termination of Agreement.

ARTICLE 33. NOTICE

1.   Any notice hereunder shall be sent to the representative of the other
     party, with the postage prepaid by overnight courier service or facsimile
     transmission. In an emergency, the notice may be sent to the responsible
     person of the other, by telephone followed by a facsimile message.

2.   Notice of failure to perform this Agreement or of termination of this
     Agreement shall be sent by overnight courier or facsimile transmission to
     the receiving party. Any written notice hereunder shall be effective as of
     the date of dispatch thereof.

ARTICLE 34 ARBITRATION:

All disputes that may arise under or in relation to this Agreement shall be
settled by good faith negotiations between the parties. Any such dispute which
cannot be settled by such good faith negotiations within sixty (60) days after
written notice by one party to the other party shall thereafter be finally
settled by binding

/*/ [CONFIDENTIAL TREATMENT REQUESTED] INDICATES MATERIAL THAT HAS BEEN OMITTED
AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED
MATERIAL HAS BEEN FILED WITH THE COMMISSION PURSUANT TO RULE 24B-2 PROMULGATED
UNDER THE SECURITIES AND EXCHANGE ACT OF 1934, AS AMENDED.

                                       16
<PAGE>

arbitration in accordance with the rules of arbitration of the International
Chamber of Commerce. As to matters of interpretation of contract law, then the
laws of the State of New Hampshire shall apply. As to matters of Presstek
Proprietary Rights (other than trade secret matters), then US patent, trademark,
and copyright law shall govern such matters, and the laws of the State of New
Hampshire shall apply to Presstek trade secret matters. As to matters of Ryobi
Proprietary Rights, then Japan patent, trademark, and copyright law shall govern
such matters, and the laws of Japan shall apply to Ryobi trade secret matters.
The ruling by the arbitration court shall be final and binding and the parties
undertake to abide by and to carry out the award immediately and voluntarily. In
the event that such award is not immediately abided by and carried out, the
award of whatever nature may be enforced without review in any court of
competent jurisdiction. The arbitration award shall determine which party shall
bear the expenses of the arbitration or the portion thereof which each party
shall bear. In case Presstek is a respondent, arbitration shall be conducted in
New York in English. In case Ryobi is a respondent, arbitration shall be
conducted in Tokyo in Japanese. The parties agree to (i) appoint an arbitrator
who is knowledgeable in and familiar with the printing and imaging industry, and
instruct the arbitrator to follow substantive rules of law; (ii) require the
testimony to be transcribed; and (iii) require the award to be accompanied by
findings of fact and a statement of reasons for the decision. The arbitrator
shall have the authority to permit discovery, to the extent deemed appropriate
by the arbitrator, upon request of a party. The arbitrator shall have no power
or authority to add to or detract from the written agreement of the parties. All
costs and expenses, including attorneys' and the arbitrator's fees, of all
parties incurred in any dispute which is determined and/or settled by
arbitration pursuant to this section shall be borne equally by the parties. Any
award shall be final, binding and conclusive upon the parties and a judgment
rendered thereon may be entered in any court having jurisdiction thereof. This
Article shall not limit the right of any party to sue for injunctive relief, for
a breach of the confidential obligations under this Agreement, for a breach
relating to intellectual property matters (including trademarks or patents), or
a violation of the distribution rights granted herein.

ARTICLE 35. FORCE MAJEURE

1.   Any party shall not be liable or be in breach of any provision of this
     Agreement for any failure or delay on its part to perform any obligation
     hereof because of acts of God, allocation of parts and components due to
     civil or military authority, war, riots, civil disturbances, accidents,
     fire, earthquakes, floods, strikes, lock-outs, labor disturbances, foreign
     or governmental order or any other cause beyond the reasonable control of
     to such party (collectively, "Force Majeure"), provided such party shall
     promptly give notice to the other party of such occurrence and make best
     efforts to eliminate the effects thereof

                                       17
<PAGE>

     to the extent possible.

2.   If a party is prevented from manufacturing or making deliveries provided
     for under this Agreement for a commercially unreasonable period not to
     exceed ninety (90) days by virtue of any above causes, the other party
     shall have the right to manufacture or arrange for the manufacture of such
     products by another party; and further provided that upon termination of
     the cause preventing performance of this Agreement, performance of this
     Agreement may be resumed upon the party's payment to the other party of
     such costs as may have been incurred in exercising the rights as above
     provided.

ARTICLE 36. SUCCESSORS AND ASSIGNS

This Agreement shall be binding upon the parties hereto and their respective
successors and assigns, but neither party shall assign this Agreement nor any
rights hereunder without a prior written consent of the other party; PROVIDED,
HOWEVER, that each party may assign this Agreement with prior written notice to
the other party in connection with (a) the sale of all or substantially all of
the capital stock or assets of such party, or (b) the acquisition by a third
party of a party to this Agreement by merger, consolidation, reorganization or
other business combination whereby more than fifty (50) percent of the voting
securities of a party to this Agreement are sold or transferred to a third party
in a business combination. Notwithstanding the foregoing, however, such business
transfer to a third party shall secure the continuous supply of DI Kits or Sun
Presses (whichever is applicable) or their related parts at reasonable prices
for at least one year

ARTICLE 37. TERMINATION OF SUN PRESSES.

Either party may decide to terminate business with the Sun Press. Should a party
decide to terminate business with the Sun Press, the terminating party shall
promptly notify the non-terminating party to provide the non-terminating party
with sufficient time to make appropriate alternative arrangements. In no case,
however, shall the non-terminating party be given notice of less than one year's
notice of the terminating party's intent to terminate except if there is less
than one year left on the term of this Agreement. If a party terminates business
with the Sun Press, the terminating party shall make every effort to assist the
non-terminating party in continuing to manufacture and sell the Sun Press. If a
party terminates business with the Sun Press, both parties shall have the
obligation to supply spare parts for [CONFIDENTIAL TREATMENT REQUESTED] /*/
years from the date of the termination.

ARTICLE 38. TRADE TERMS

All trade terms provided in this Agreement or individual contracts relating
thereto shall be interpreted in accordance with the latest terms of the
International Chamber of Commerce.

/*/ [CONFIDENTIAL TREATMENT REQUESTED] INDICATES MATERIAL THAT HAS BEEN OMITTED
AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED
MATERIAL HAS BEEN FILED WITH THE COMMISSION PURSUANT TO RULE 24B-2 PROMULGATED
UNDER THE SECURITIES AND EXCHANGE ACT OF 1934, AS AMENDED.

                                       18
<PAGE>

ARTICLE 39. ESCROW ARRANGEMENT

The parties agree that in order to warrant each party's access to the other
party's proprietary technology, especially software, concerning OEM Sun Presses
and DI Kits, as provided for herein, the parties shall establish an escrow with
a certain escrow agent to provide for the retention, administration and
controlled access of the proprietary technology materials of each party. The
details of the escrow arrangement shall be discussed and negotiated separately,
and the parties shall forthwith execute an escrow agreement to implement said
arrangement.

ARTICLE 40. GOVERNING LAW

The validity, construction and performance of this Agreement shall be governed
by laws of wherever the arbitration should take place; provided, that as to
matters of Presstek Proprietary Rights (other than Presstek trade secret
matters), then US patent, trademark, and copyright law shall govern and the laws
of the State of New Hampshire shall apply to trade secret matters, and as to
matters of Ryobi Proprietary Rights, then Japanese patent, trademark and
copyright law shall govern.

ARTICLE 41. WAIVER

Any default or delay by either party in exercising any of its rights or remedies
shall not be deemed to be waiver thereof or a change in this Agreement. Any
single or partial exercise of any of rights or remedies under this Agreement
shall not prevent exercise of or additional exercise of any other rights or
remedies.

ARTICLE 42. SEVERABILITY

Any judgment made by the court of jurisdiction or administrative authorities
that any of the terms hereof or part thereof is illegal or void shall not affect
validity of the rest of that term or of the other terms thereof, which shall be
fully effective as if the terms or part thereof so judged illegal or void were
not included herein.

ARTICLE 43 DISCUSSION

If a situation arises where any of the above articles do not cover such new
situation, both parties shall faithfully discuss to resolve such matter in good
faith and with reference to the articles of this Agreement.

ARTICLE 44 CONSEQUENTIAL DAMAGES

EXCEPT FOR THE PARTIES' OBLIGATIONS OF INDEMNITY AS EXPRESSLY PROVIDED IN THIS
AGREEMENT AND THE OBLIGATIONS PURSUANT TO THE CONFIDENTIALITY AGREEMENT, WHICH
SHALL BE GOVERNED BY ITS TERMS, IN NO EVENT SHALL EITHER PARTY BE LIABLE TO THE
OTHER OR ANY OTHER PERSON FOR ANY SPECIAL, PUNITIVE, INCIDENTAL, CONSEQUENTIAL,
OR OTHER INDIRECT DAMAGES OF ANY KIND, INCLUDING BUT NOT LIMITED TO, LOSS OF
PROFITS OR DAMAGES TO ANY PARTY'S BUSINESS REPUTATION OR GOODWILL, HOWEVER
CAUSED AND ON ANY THEORY OF LIABILITY, WHETHER IN AN ACTION FOR CONTRACT, STRICT
LIABILITY OR TORT

                                       19
<PAGE>

(INCLUDING NEGLIGENCE) OR ANY OTHER LEGAL OR EQUITABLE GROUNDS, WHETHER OR NOT
THE FIRST PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGE AND
NOTWITHSTANDING THE FAILURE OF ESSENTIAL PURPOSE OF ANY REMEDY.

The purpose of Section 44 is to limit monetary claims to amounts that can be
predicted and are quantifiable, which are a direct result of the breach that
initiates the monetary claim, by excluding "punitive," "incidental" and other
"indirect" monetary claims, which are usually intended to include out-of-pocket
expenses directly attributable to a breach. Since intellectual property of both
Ryobi and Presstek is extremely important, this section does not limit amount of
monetary claims for a breach associated with a misuse of intellectual property.
This section also does not limit the amount of monetary claims for a breach
associated with the Confidentiality Agreement.

ARTICLE 45 TAXES

1.   With regard to Taxes that may arise in connection with Presstek
     distribution activities, Presstek shall be responsible for and shall bear
     and pay (or reimburse Ryobi for, to the extent paid by Ryobi) all Taxes
     (but excluding any net income taxes imposed on Ryobi) which are owed or
     imposed under or by any governmental authority or agency in connection with
     the Presstek distribution activities.

2.   With regard to Taxes that may arise in connection with Ryobi distribution
     activities, Ryobi shall be responsible for and shall bear and pay (or
     reimburse Presstek for, to the extent paid by Presstek) all Taxes (but
     excluding any net income taxes imposed on Presstek) which are owed or
     imposed under or by any governmental authority or agency in connection with
     the Ryobi distribution activities.

3.   If either Presstek or Ryobi would be responsible for any Tax under this
     Agreement and provides certification of an exemption from such Tax or of a
     reduced rate of Tax imposed on the other party by an applicable taxing
     authority, under such taxing authority's rules, then the other party shall
     not (unless otherwise required by law) invoice for or pay over any such Tax
     unless and until the applicable taxing authority assesses such Tax.

4.   For purposes of this section, "Taxes" shall mean any and all taxes,
     customs, duties, and similar charges imposed or collected by any
     governmental entity worldwide or any political subdivision thereof on the
     distribution of Sun Presses or DI Products and however designated or levied
     and shall include any interest, penalties, costs, or additions to tax
     (except as may otherwise be specifically provided herein).

                                       20
<PAGE>

ARTICLE 46. ENTIRE AGREEMENT

This Agreement (including all exhibits and schedules to this Agreement)
constitutes the entire agreement between the parties hereto and supersedes all
provisions, negotiations, agreements and commitments in respect thereto,
including that certain Ryobi-Presstek Memorandum of Understanding, and shall not
be released, discharged, changed or modified in any manner except by instruments
signed by duly authorized officers or representatives of each of the parties
hereto. The parties acknowledge that upon execution of this Agreement, that
certain Agreement for Joint Development, Manufacture and Sales of Sun Press is
hereby terminated and shall have no further force and effect.

IN WITNESS WHEREOF, the parties hereto have signed this Agreement, in duplicate,
as hereinbelow indicated.

(Ryobi)                                       (Presstek)
RYOBI LIMITED                                 PRESSTEK, INC.

By: /s/ T. Mifune                             By: /s/ Robert Hallman
    ---------------------------------             ------------------------------
    Title: Senior Vice President                  Title: CEO
    Date: April 5, 2002                           Date: 3/28/02

                                       21
<PAGE>
                                                                 October 9, 2001

                      EXHIBIT 1 - SUN PRESS SPECIFICATIONS

1.   Presstek grants Ryobi the right to use the Heath Patent for this project
     only.

2.   Sun Press specifications and related issues;

     1)   The specifications of Sun Press are as described below unless
          otherwise noted.

          a)   Number of Printing Units 4, each with 4 form rollers

          b)   Printing Speed 1,500-7,000 S.P.H. Local conditions, ink, stock
               and printing quality required will affect the maximum printing
               speed.

          c)   Max. Paper Size (W x L) 340 x 460 mm (13.39 x 18.11")

          d)   Min. Paper Size (W x L) 90 x 100 mm (3.54 x 3.94")

          e)   Max. Printing Area (W x L) 330 x 450 mm (12.99 x 17.72")

          f)   Paper Thickness 0.06-0.3 mm (0.0024-0.012")

          g)   Blanket Type Blanket with aluminum bar.

          h)   Blanket Size 526 x 350 x 1.95 mm (20.70 x 13.78 x 0.077")

          i)   Plate Material PEARLdry(TM) Plus (waterless plate x .007" thick)

          j)   Number of Plates 28 per roll

          k)   Plate Setting Auto plate advance mechanism

          l)   [CONFIDENTIAL TREATMENT REQUESTED] /*/

          m)   Laser Type FirePower(TM) multi-beam lasers, [CONFIDENTIAL
               TREATMENT REQUESTED] /*/ per Imaging Unit

          n)   Feeding System Universal feeder (portrait)

          o)   Feeder Pile Capacity 400 mm (15.75")

          p)   Delivery Pile Capacity 400 mm (15.75")

          q)   Power: Three phase 200V, 50/60 Hz, 48A or other voltages

          r)   Wattage: 16kW

          s)   Dimensions (L x W x H) 3,230 x 2,635 x 1,665 mm (Including steps
               and operation stand)

          t)   Weight 4,500kg (9,950 lbs.)

          u)   Recommended room conditions: Room temperature 20 - 25 degreesC,
               Relative humidity 50 - 60%.

          v)   Design and specifications are subject to change as agreed upon by
               Ryobi & Presstek. Specifications may differ slightly depending on
               the country.

     2)   The following options are available for OEM Sun Presses.

          a)   Multisize Paper Feed table

          b)   IR Dryer

          c)   PDS-E Density control system.

          d)   Presstek shall furnish different type Plate Roll Cassettes for
               Ryobi-brand press and OEM-brand press so there will be no
               interchangeability.

     3)   Presses to be offered for:

          -    United States of America shall meet UL 775 and FCC Requirements;
               and

          -    Europe shall meet GS and EMC requirements.

3.   For the sake of product liability, a small data plate shall be placed on
     non operator side of OEM-brand presses which should indicate Ryobi/Presstek
     as being manufacturer.

/*/ [CONFIDENTIAL TREATMENT REQUESTED] INDICATES MATERIAL THAT HAS BEEN OMITTED
AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED
MATERIAL HAS BEEN FILED WITH THE COMMISSION PURSUANT TO RULE 24B-2 PROMULGATED
UNDER THE SECURITIES AND EXCHANGE ACT OF 1934, AS AMENDED.

                                       22
<PAGE>

4.   Software License Agreement for supplying digital data for manuals

     1)   Ryobi will supply digital data to Presstek for the purpose of
          supporting Presstek's service to Presstek Customers. Ryobi accepts
          that OEM partner(s) can transfer the digital data to their
          distributors and customers.

     2)   Ryobi assumes no responsibility or liability for any errors or
          inaccuracies that may appear in the Presstek's materials produced by
          the data that Presstek quoted from Ryobi's supplied data.

     3)   Regardless of the above item a), Ryobi accepts that Presstek transfers
          the digital data to OEM partner(s), distributors and customers.

5.   Design Patent Agreement

     1)   Article 2 of the Joint Application Agreement (ref. 000926), Exhibit 2
          includes:

          "(Proceedings and Costs) Necessary proceedings for obtaining design
          registration for the Design Applications and other necessary
          proceedings for maintenance and administration of the design rights
          shall be conducted by Ryobi or Ryobi's attorney, and Presstek shall
          cooperate with Ryobi in such proceedings. The Parties shall equally
          bear the costs thereof."

     2)   As of October 9, 2001, Ryobi completed application of the design
          patent for the Ryobi 3404DI for 10 countries. Ryobi paid the
          application fee for 10 countries and the registration fee for only
          Japan. Presstek accepted Ryobi's invoice for [CONFIDENTIAL TREATMENT
          REQUESTED] /*/ (half cost of [CONFIDENTIAL TREATMENT REQUESTED] /*/)
          as Presstek's share of the cost.

     3)   In the future, Ryobi will pay design patent registration fees for the
          9 remaining countries except Japan.

     4)   At the end of each March and September, Ryobi will inform Presstek of
          design patent registration fees involved in the previous 6 months.
          Ryobi will send an invoice for payment of 1/2 the registration fees,
          until the registration of the design patent is finished. The invoice
          for registration fees including copies of bills issued by Ryobi's
          attorney for design patent registration fees will be sent by DHL to
          the attention of Diane Bourque, Controller of Presstek.

6.   Additional Features and Modifications To Be Introduced In 2002. There are
     some additional items beyond the afore-mentioned 2 Sun Press specifications
     and related issues. Such items are listed in Exhibit 5-A-b.

/*/ [CONFIDENTIAL TREATMENT REQUESTED] INDICATES MATERIAL THAT HAS BEEN OMITTED
AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED
MATERIAL HAS BEEN FILED WITH THE COMMISSION PURSUANT TO RULE 24B-2 PROMULGATED
UNDER THE SECURITIES AND EXCHANGE ACT OF 1934, AS AMENDED.

                                       23
<PAGE>

                     EXHIBIT 2 - CONSUMABLES SPECIFICATIONS

                            - PLATE SPECIFICATIONS -

PRODUCT NAME: Presstek PEARLdry PLUS thermal laser media - spooled product.

PRODUCT DESCRIPTION: Metalized polyester film with silicone coating.

PRODUCT APPLICATION: Plate material for Presstek DI enabled printing presses.
The material is spooled on steel cores that engage unwind and take-up mechanisms
integral to the press plate cylinder. The design allows a specific amount of
material to be advanced into imaging and printing position. A thermal laser
imaging system creates a latent image on the surface of the plate. A subsequent
cleaning step removes silicone in the imaged areas, creating an ink-receptive
printing master. Up to 20,000* copies can be produced from the printing master.

* Actual run length performance may vary.

PRODUCT SPECIFICATION:
------------------------------------------------------------------
                            SUN Press
------------------------------------------------------------------
Spool width                 [CONFIDENTIAL TREATMENT REQUESTED] /*/
------------------------------------------------------------------
Spool Length                [CONFIDENTIAL TREATMENT REQUESTED] /*/
------------------------------------------------------------------
Images / Spool               28
------------------------------------------------------------------

Presstek warrants the spooled plate for [CONFIDENTIAL TREATMENT REQUESTED] /*/
from date of the shipment from Presstek.

/*/ [CONFIDENTIAL TREATMENT REQUESTED] INDICATES MATERIAL THAT HAS BEEN OMITTED
AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED
MATERIAL HAS BEEN FILED WITH THE COMMISSION PURSUANT TO RULE 24B-2 PROMULGATED
UNDER THE SECURITIES AND EXCHANGE ACT OF 1934, AS AMENDED.

                                       24
<PAGE>

                         EXHIBIT 3 - PRESSTEK TRADEMARKS

DI
ProFire Imaging System
PEARLdry
PEARLdry PLus
Firepower Multibeam Laser
DI Logo (attached)

<PAGE>

                    EXHIBIT 4 - QUALITY ASSURANCE COMPLIANCE

[CONFIDENTIAL TREATMENT REQUESTED] /*/

/*/ [CONFIDENTIAL TREATMENT REQUESTED] INDICATES MATERIAL THAT HAS BEEN OMITTED
AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED
MATERIAL HAS BEEN FILED WITH THE COMMISSION PURSUANT TO RULE 24B-2 PROMULGATED
UNDER THE SECURITIES AND EXCHANGE ACT OF 1934, AS AMENDED.

<PAGE>

                    EXHIBIT 5 - BASE PRICE LIST FOR DI KITS
                               AND OEM SUN PRESSES

                                  EXHIBIT 5-A-a
                   BASE PRICE OF NON-LASER DI PRESS AND DI KIT

<TABLE>
                                                       (Agreed on Jan. 31, 2002)
--------------------------------------------------------------------------------
<S>                      <C>                          <C>

                         Base Yen Price (A)            Base rate (R1)

--------------------------------------------------------------------------------
Non-laser DI press       Yen [CONFIDENTIAL TREATMENT
                         REQUESTED] /*/                [CONFIDENTIAL TREATMENT
                                                       REQUESTED] /*/ Yen/$

--------------------------------------------------------------------------------
DI Kit                   Yen [CONFIDENTIAL TREATMENT
                         REQUESTED] /*/                [CONFIDENTIAL TREATMENT
                                                       REQUESTED] /*/ Yen/$

--------------------------------------------------------------------------------
</TABLE>

Note 1.   The above base price is based on 2-1) in Exhibit 1, and there are some
          additional features and modifications to be introduced in 2002. And
          the prices of such items are shown in Exhibit 5-A-b.

/*/ [CONFIDENTIAL TREATMENT REQUESTED] INDICATES MATERIAL THAT HAS BEEN OMITTED
AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED
MATERIAL HAS BEEN FILED WITH THE COMMISSION PURSUANT TO RULE 24B-2 PROMULGATED
UNDER THE SECURITIES AND EXCHANGE ACT OF 1934, AS AMENDED.

<PAGE>

                                  EXHIBIT 5-A-b
       SOME ADDITIONAL FEATURES AND MODIFICATIONS TO BE INTRODUCED IN 2002

<TABLE>
<CAPTION>
                                                                                     March 11, 2002
---------------------------------------------------------------------------------------------------
                                                          Xerox                       KBA
                                                 [CONFIDENTIAL TREATMENT    [CONFIDENTIAL TREATMENT
  No.   Item                                         REQUESTED] /*/             REQUESTED] /*/
===================================================================================================
<S>                                              <C>                        <C>
   1)   Base price                                     [CONFIDENTIAL TREATMENT REQUESTED] /*/
---------------------------------------------------------------------------------------------------
   2)   UL extra                                 [CONFIDENTIAL TREATMENT        --------------
        (Final cost on Mar.11, 2002)                 REQUESTED] /*/
---------------------------------------------------------------------------------------------------
   3)   GS extra                                  ------------------        [CONFIDENTIAL TREATMENT
        (=CE-extra, unexpected amount)                                          REQUESTED] /*/
---------------------------------------------------------------------------------------------------
   4)   Extra cost                               [CONFIDENTIAL TREATMENT        --------------
        due to Xerox special demand test             REQUESTED] /*/
---------------------------------------------------------------------------------------------------
   5)   Extra cost                                ------------------        [CONFIDENTIAL TREATMENT
        due to KBA special demand test                                          REQUESTED] /*/
---------------------------------------------------------------------------------------------------
   6)   Cost up for KBA cover                     ------------------        [CONFIDENTIAL TREATMENT
                                                                                REQUESTED] /*/
-----------------------------------------------------------------------------------------------------
   7)   Ryobi-recommended up-grade                     [CONFIDENTIAL TREATMENT REQUESTED] /*/
-----------------------------------------------------------------------------------------------------
        (a) [CONFIDENTIAL TREATMENT                    [CONFIDENTIAL TREATMENT REQUESTED] /*/
            REQUESTED] /*/
-----------------------------------------------------------------------------------------------------
        (b) [CONFIDENTIAL TREATMENT                    [CONFIDENTIAL TREATMENT REQUESTED] /*/
            REQUESTED] /*/
-----------------------------------------------------------------------------------------------------
   8)   Various modifications                          [CONFIDENTIAL TREATMENT REQUESTED] /*/
        already done
-----------------------------------------------------------------------------------------------------
   9)   IR dryer                                       [CONFIDENTIAL TREATMENT REQUESTED] /*/
-----------------------------------------------------------------------------------------------------
  10)   IR dryer (at promotional price)                [CONFIDENTIAL TREATMENT REQUESTED] /*/
-----------------------------------------------------------------------------------------------------
  11)   Multi-size paper feed table                    [CONFIDENTIAL TREATMENT REQUESTED] /*/
-----------------------------------------------------------------------------------------------------
  12)   Multi-size paper feed table (at                [CONFIDENTIAL TREATMENT REQUESTED] /*/
        promotional price)
-----------------------------------------------------------------------------------------------------
  13)   PDS-E                                          [CONFIDENTIAL TREATMENT REQUESTED] /*/
-----------------------------------------------------------------------------------------------------
  14)   PDS-E (at promotional price)                   [CONFIDENTIAL TREATMENT REQUESTED] /*/
-----------------------------------------------------------------------------------------------------
</TABLE>

Note: The above dollar prices in (  ) are converted with base rate of Yen110/$.

/*/ [CONFIDENTIAL TREATMENT REQUESTED] INDICATES MATERIAL THAT HAS BEEN OMITTED
AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED
MATERIAL HAS BEEN FILED WITH THE COMMISSION PURSUANT TO RULE 24B-2 PROMULGATED
UNDER THE SECURITIES AND EXCHANGE ACT OF 1934, AS AMENDED.

<PAGE>

                                    EXHIBIT 6
             PRICING SCHEME FOR ADJUSTING EXCHANGE RATE FLUCTUATION

(1)  The adjustment of prices for non-laser DI press and DI kit shall be made
     every [CONFIDENTIAL TREATMENT REQUESTED] /*/ months as mathematically
     expressed in the equation below in the below Table 1. However, unless the
     difference between the exchange rates is more than +/- [CONFIDENTIAL
     TREATMENT REQUESTED] /*/ yen since the previous adjustment at the
     [CONFIDENTIAL TREATMENT REQUESTED] /*/ month adjustment interval, there
     will be no adjustment. However, if the difference of the exchange rate (at
     the [CONFIDENTIAL TREATMENT REQUESTED] /*/ month adjustment interval) is
     more than +/- [CONFIDENTIAL TREATMENT REQUESTED] /*/ yen as compared with
     the rate at the last adjustment, the adjustment will be made as stipulated
     in Table 1.

(2)  Exchange rate for calculation

     a)   December 15 rate shall be used for the pricing in the January - June
          shipment period, and the June 15 rate shall be used for the July -
          December shipment period.

     b)   R1 in the Table 1 is the first rate (=base rate) corresponding to the
          "first 6 month period". And it was mutually agreed to set R1=110Yen/$
          to initialize the formula.

Table 1:
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------
                                                Official        Actual Applicable
        Shipment         Standard FOB Japan   Exchange Rate       Exchange Rate      FOB Japan Price
          Month             Price (Yen)                          for Calculation         in US$
------------------------------------------------------------------------------------------------------
<S>                              <C>               <C>          <C>                      <C>
First period                     A                 R1               R'1=R1               A/R'1
(Prior to the end of
2001)
------------------------------------------------------------------------------------------------------
Second period                    A                 R2            R'2=(R1+R2)/2           A/R'2
(Jan. - June, 2002
shipment)
------------------------------------------------------------------------------------------------------
Third Period                     A                 R3            R'3=(R1+R3)/2           A/R'3
(July - Dec., 2002
shipment)
------------------------------------------------------------------------------------------------------
(n-1)th 6 months                 A                Rn-1         R'n-1=(R1+Rn-1)/2         A/R'n-1
------------------------------------------------------------------------------------------------------
n-th 6 months                    A                Rn             R'n=(R1+Rn)/2           A/R'n
------------------------------------------------------------------------------------------------------
</TABLE>

Note: 1) The base Yen price (A) and the base rate (R1) are as per Exhibit 5.

      2) For example, the Second period (Jan. - June, 2002 shipment) for
         non-laser DI press is calculated as follows, where R2 = 127.57 Yen/$
         reported in Wall Street Journal on Dec. 18, which was the first report
         after Dec. 15, 2001.

         R'2 = (110 + 127.57)/2 = 118.79
         Yen [CONFIDENTIAL TREATMENT REQUESTED] /*/

         The Second period for DI kit is calculated as follows.
         Yen [CONFIDENTIAL TREATMENT REQUESTED] /*/

/*/ [CONFIDENTIAL TREATMENT REQUESTED] INDICATES MATERIAL THAT HAS BEEN OMITTED
AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED
MATERIAL HAS BEEN FILED WITH THE COMMISSION PURSUANT TO RULE 24B-2 PROMULGATED
UNDER THE SECURITIES AND EXCHANGE ACT OF 1934, AS AMENDED.

<PAGE>

      3) The actual price of presses will be calculated by adding GS fee, UL
         fee, etc. on the top of the above figure.

      4) Once the shipment date of goods has been established through mutual
         correspondence, and if there should be any delay of shipment due to
         manufacturer's reason, such delayed goods shall not be given any
         disadvantageous price which might arise as the result of new exchange
         rate. However, if such delay of shipment is the result of buyer's
         request, old or new disadvantageous price may be applied on such
         delayed goods.

      5) If the official exchange rate changes more than +/- [CONFIDENTIAL
         TREATMENT REQUESTED] /*/% within the [CONFIDENTIAL TREATMENT REQUESTED]
         /*/ month period, both parties should cooperate on an additional
         adjustment.

/*/ [CONFIDENTIAL TREATMENT REQUESTED] INDICATES MATERIAL THAT HAS BEEN OMITTED
AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED
MATERIAL HAS BEEN FILED WITH THE COMMISSION PURSUANT TO RULE 24B-2 PROMULGATED
UNDER THE SECURITIES AND EXCHANGE ACT OF 1934, AS AMENDED.

<PAGE>
                     EXHIBIT 7 - PRICE LIST FOR SPARE PARTS

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------------
PRESSTEK            PRESSTEK          LIST       RYOBI     QTY PER  QTY REC   QTY REC  QTY REC   SHIPPING    PART     REPAIR
 PART #         PART DESCRIPTION      PRICE      PRICE      PRESS    FOR 10   FOR 20    FOR 50   IN KILOS   REPAIR?   PRICE
----------------------------------------------------------------------------------------------------------------------------
<S>             <C>                     <C>                   <C>      <C>       <C>      <C>       <C>      <C>
S-AEE01741      PCB Assy,               [CONFIDENTIAL         2        1         2        5         5        [CONFIDENTIAL
                70 Volt Switch,           TREATMENT                                                            TREATMENT
                Integrated Head          REQUESTED]/*/                                                        REQUESTED]/*/
----------------------------------------------------------------------------------------------------------------------------
S-AEE01791      PCB Assy,               [CONFIDENTIAL         2        1         2        5         7        [CONFIDENTIAL
                Backplane,                TREATMENT                                                            TREATMENT
                Integrated Head          REQUESTED]/*/                                                        REQUESTED]/*/
----------------------------------------------------------------------------------------------------------------------------
S-AEE01801      PCB Assy, Nexen,        [CONFIDENTIAL         2        1         2        5         7        [CONFIDENTIAL
                Integrated Head           TREATMENT                                                            TREATMENT
                                         REQUESTED]/*/                                                        REQUESTED]/*/
----------------------------------------------------------------------------------------------------------------------------
S-AEE01931      PCB Assy,               [CONFIDENTIAL        12        2         4        8         5        [CONFIDENTIAL
                Laser Drv,                TREATMENT                                                            TREATMENT
                Integrated Head          REQUESTED]/*/                                                        REQUESTED]/*/
----------------------------------------------------------------------------------------------------------------------------
S-AEE01961      Kit, Spares,            [CONFIDENTIAL        12        2         4        6         1        [CONFIDENTIAL
                PCB, Laser DRV,           TREATMENT                                                            TREATMENT
                6 Pin                    REQUESTED]/*/                                                        REQUESTED]/*/
----------------------------------------------------------------------------------------------------------------------------
AEE02081        PCB Assy,               [CONFIDENTIAL         1        1         2        5         3        [CONFIDENTIAL
                OHCI Adapter,             TREATMENT                                                            TREATMENT
                3 Port                   REQUESTED]/*/                                                        REQUESTED]/*/
----------------------------------------------------------------------------------------------------------------------------
AFF02981        Kit, Software,          [CONFIDENTIAL         1        2         4        8         2        [CONFIDENTIAL
                3404 DI                   TREATMENT                                                            TREATMENT
                                         REQUESTED]/*/                                                        REQUESTED]/*/
----------------------------------------------------------------------------------------------------------------------------
S-AHH04961      Module, PCB Assy,       [CONFIDENTIAL         2        1         2        5         5        [CONFIDENTIAL
                Stepper Drive             TREATMENT                                                            TREATMENT
                                         REQUESTED]/*/                                                        REQUESTED]/*/
----------------------------------------------------------------------------------------------------------------------------
S-AHH05471      Integrated Head,        [CONFIDENTIAL         2        0         1        3        50        [CONFIDENTIAL
                Ryobi                     TREATMENT                                                            TREATMENT
                                         REQUESTED]/*/                                                        REQUESTED]/*/
----------------------------------------------------------------------------------------------------------------------------
S-AHH05581      Stepper Driver          [CONFIDENTIAL         2        2         4        6         5        [CONFIDENTIAL
                Assy.                     TREATMENT                                                            TREATMENT
                                         REQUESTED]/*/                                                        REQUESTED]/*/
----------------------------------------------------------------------------------------------------------------------------
AHH04621        Motor Assy,             [CONFIDENTIAL         2        1         2        5         3        [CONFIDENTIAL
                Stepper,                  TREATMENT                                                            TREATMENT
                Integrated Head          REQUESTED]/*/                                                        REQUESTED]/*/
----------------------------------------------------------------------------------------------------------------------------
AHH04941        Pump Assy,              [CONFIDENTIAL        12        3         6       15         2        [CONFIDENTIAL
                Diode,                    TREATMENT                                                            TREATMENT
                Integrated Head          REQUESTED]/*/                                                        REQUESTED]/*/
----------------------------------------------------------------------------------------------------------------------------
AHH05161        Sensor, Home,           [CONFIDENTIAL         2        1         2        5         2        [CONFIDENTIAL
                Integrated Head           TREATMENT                                                            TREATMENT
                                         REQUESTED]/*/                                                        REQUESTED]/*/
----------------------------------------------------------------------------------------------------------------------------
AHH05381        Laser Package,          [CONFIDENTIAL        12        2         4        6         1        [CONFIDENTIAL
                MEP, HP, Met              TREATMENT                                                            TREATMENT
                                         REQUESTED]/*/                                                        REQUESTED]/*/
----------------------------------------------------------------------------------------------------------------------------
S-AMM08971      Glass Holder            [CONFIDENTIAL         2        1         2        5         5        [CONFIDENTIAL
                Assy, Ryobi,              TREATMENT                                                            TREATMENT
                w/screws                 REQUESTED]/*/                                                        REQUESTED]/*/
----------------------------------------------------------------------------------------------------------------------------
AMM0170A        Leadscrew               [CONFIDENTIAL         2        1         2        2         6        [CONFIDENTIAL
                (2mm Pitch                TREATMENT                                                            TREATMENT
                for 1270/2540 dpi)       REQUESTED]/*/                                                        REQUESTED]/*/
----------------------------------------------------------------------------------------------------------------------------
AMM08851        Clamp Assy, diode       [CONFIDENTIAL        12        2         4        8         2        [CONFIDENTIAL
                                          TREATMENT                                                            TREATMENT
                                         REQUESTED]/*/                                                        REQUESTED]/*/
----------------------------------------------------------------------------------------------------------------------------
AMM09221        Leadscrew               [CONFIDENTIAL         2        1         2        5         2        [CONFIDENTIAL
                Nutholder Assy            TREATMENT                                                            TREATMENT
                                         REQUESTED]/*/                                                        REQUESTED]/*/
----------------------------------------------------------------------------------------------------------------------------
AWW07101        Cable Assy,             [CONFIDENTIAL         2        1         2        5         2        [CONFIDENTIAL
                Network,                  TREATMENT                                                            TREATMENT
                10 Meters, Firewire      REQUESTED]/*/                                                        REQUESTED]/*/
----------------------------------------------------------------------------------------------------------------------------
AWW07331        Cable Assy,             [CONFIDENTIAL         2        1         2        5         2        [CONFIDENTIAL
                -6VDC                     TREATMENT                                                            TREATMENT
                                         REQUESTED]/*/                                                        REQUESTED]/*/
----------------------------------------------------------------------------------------------------------------------------
AWW07341        Cable Assy,             [CONFIDENTIAL         2        1         2        5         2        [CONFIDENTIAL
                24VDC                     TREATMENT                                                            TREATMENT
                                         REQUESTED]/*/                                                        REQUESTED]/*/
----------------------------------------------------------------------------------------------------------------------------
AWW07351        Cable Assy,             [CONFIDENTIAL         2        1         2        5         2        [CONFIDENTIAL
                Stepper Control           TREATMENT                                                            TREATMENT
                                         REQUESTED]/*/                                                        REQUESTED]/*/
----------------------------------------------------------------------------------------------------------------------------
AWW07361        Cable Assy,             [CONFIDENTIAL         2        1         2        5         2        [CONFIDENTIAL
                Stepper Motor             TREATMENT                                                            TREATMENT
                Drive                    REQUESTED]/*/                                                        REQUESTED]/*/
----------------------------------------------------------------------------------------------------------------------------
AWW07371        Cable Assy,             [CONFIDENTIAL         2        1         2        5         2        [CONFIDENTIAL
                Peripherals               TREATMENT                                                            TREATMENT
                                         REQUESTED]/*/                                                        REQUESTED]/*/
----------------------------------------------------------------------------------------------------------------------------
AWW07411        Cable Assy,             [CONFIDENTIAL         1        1         2        4         2        [CONFIDENTIAL
                -6VDC, T2                 TREATMENT                                                            TREATMENT
                                         REQUESTED]/*/                                                        REQUESTED]/*/
----------------------------------------------------------------------------------------------------------------------------
AWW07421        Cable Assy,             [CONFIDENTIAL         1        1         2        4         2        [CONFIDENTIAL
                +24VDC, T2                TREATMENT                                                            TREATMENT
                                         REQUESTED]/*/                                                        REQUESTED]/*/
----------------------------------------------------------------------------------------------------------------------------
AWW07431        Cable Assy,             [CONFIDENTIAL         1        1         2        4         2        [CONFIDENTIAL
                Stepper Control,          TREATMENT                                                            TREATMENT
                T2                       REQUESTED]/*/                                                        REQUESTED]/*/
----------------------------------------------------------------------------------------------------------------------------
AWW07441        Cable Assy,             [CONFIDENTIAL         1        1         2        4         2        [CONFIDENTIAL
                Stepper Motor             TREATMENT                                                            TREATMENT
                Drive, T2                REQUESTED]/*/                                                        REQUESTED]/*/
----------------------------------------------------------------------------------------------------------------------------
S-CBC00091      Kit, Spares,            [CONFIDENTIAL         1        1         1        2         2        [CONFIDENTIAL
                PCB, OHCIADAPT,           TREATMENT                                                            TREATMENT
                3 Port                   REQUESTED]/*/                                                        REQUESTED]/*/
----------------------------------------------------------------------------------------------------------------------------
EYY00881        Power Supply,           [CONFIDENTIAL         1        1         2        5         6        [CONFIDENTIAL
                Switching,                TREATMENT                                                            TREATMENT
                6V, 24V, 70V             REQUESTED]/*/                                                        REQUESTED]/*/
----------------------------------------------------------------------------------------------------------------------------
MFC03351        Shoulder Screw          [CONFIDENTIAL         2        0         0        2         1        [CONFIDENTIAL
                                          TREATMENT                                                            TREATMENT
                                         REQUESTED]/*/                                                        REQUESTED]/*/
----------------------------------------------------------------------------------------------------------------------------
</TABLE>

/*/ [CONFIDENTIAL TREATMENT REQUESTED] INDICATES MATERIAL THAT HAS BEEN OMITTED
AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED
MATERIAL HAS BEEN FILED WITH THE COMMISSION PURSUANT TO RULE 24B-2 PROMULGATED
UNDER THE SECURITIES AND EXCHANGE ACT OF 1934, AS AMENDED.

<PAGE>
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------------------
PRESSTEK         PRESSTEK               LIST           RYOBI     QTY PER  QTY REC   QTY REC  QTY REC   SHIPPING    PART    REPAIR
 PART #      PART DESCRIPTION           PRICE          PRICE      PRESS    FOR 10   FOR 20    FOR 50   IN KILOS   REPAIR?   PRICE
---------------------------------------------------------------------------------------------------------------------------------
<S>          <C>                           <C>                      <C>      <C>       <C>      <C>       <C>      <C>     <C>
MFC03361     Shoulder Screw                [CONFIDENTIAL            2        0         0        2         1        No      N/A
                                             TREATMENT
                                            REQUESTED]/*/
---------------------------------------------------------------------------------------------------------------------------------
MHH0158A     Fitting,
             Barb 3/8 Tube X 1/4 NPT       [CONFIDENTIAL            2        0         0        2         1        No      N/A
                                             TREATMENT
                                            REQUESTED]/*/
---------------------------------------------------------------------------------------------------------------------------------
MHH0224A     Oring Cord,                   [CONFIDENTIAL            4        0         0        2         1        No      N/A
             4mm, X.X ft LG                  TREATMENT
                                            REQUESTED]/*/
---------------------------------------------------------------------------------------------------------------------------------
MHH04851     Shaft Coupling                [CONFIDENTIAL            2        0         0        5         1        No      N/A
                                             TREATMENT
                                            REQUESTED]/*/
---------------------------------------------------------------------------------------------------------------------------------
MHH04861     O Ring,BUNA-N,70D             [CONFIDENTIAL            6        0         0        2         1        No      N/A
                                             TREATMENT
                                            REQUESTED]/*/
---------------------------------------------------------------------------------------------------------------------------------
MHH05261     Standoff                      [CONFIDENTIAL            6        0         0        2         1        No      N/A
                                             TREATMENT
                                            REQUESTED]/*/
---------------------------------------------------------------------------------------------------------------------------------
MHH05271     Belleville Washer             [CONFIDENTIAL            4        0         0        2         1        No      N/A
                                             TREATMENT
                                            REQUESTED]/*/
---------------------------------------------------------------------------------------------------------------------------------
MHH05981     Coupling, Shaft,              [CONFIDENTIAL            2        0         1        1         1        No      N/A
             1/4X5/16 BRE MET                TREATMENT
                                            REQUESTED]/*/
---------------------------------------------------------------------------------------------------------------------------------
MHH05281     O Ring, Buna-N,70D            [CONFIDENTIAL            2        0         0        2         1        No      N/A
                                             TREATMENT
                                            REQUESTED]/*/
---------------------------------------------------------------------------------------------------------------------------------
MHM07211     Cover, Top,                   [CONFIDENTIAL            2        0         1        2         1        No      N/A
             Integrated Head                 TREATMENT
                                            REQUESTED]/*/
---------------------------------------------------------------------------------------------------------------------------------
MHM07221     Cover, Back,                  [CONFIDENTIAL            2        0         1        2         1        No      N/A
             Integrated Head                 TREATMENT
                                            REQUESTED]/*/
---------------------------------------------------------------------------------------------------------------------------------
MHM07231     Shield, Laser,                [CONFIDENTIAL            2        0         1        2         1        No      N/A
             Integrated Head                 TREATMENT
                                            REQUESTED]/*/
---------------------------------------------------------------------------------------------------------------------------------
MMM06041     Clamp, Diode,                 [CONFIDENTIAL           12        0         1        1         1        No      N/A
             Integrated Head                 TREATMENT
                                            REQUESTED]/*/
---------------------------------------------------------------------------------------------------------------------------------
MHM07441     Craddle, Firewire Con,        [CONFIDENTIAL            2        0         1        2         1        No      N/A
             Integrated Head                 TREATMENT
                                            REQUESTED]/*/
---------------------------------------------------------------------------------------------------------------------------------
MMM16311     Mount, Stepper Motor,         [CONFIDENTIAL            2        0         0        2         2        No      N/A
             Integrated Head                 TREATMENT
                                            REQUESTED]/*/
---------------------------------------------------------------------------------------------------------------------------------
MMM16321     Support, Leadscrew,           [CONFIDENTIAL            2        0         0        2         2        No      N/A
             Integrated Hd                   TREATMENT
                                            REQUESTED]/*/
---------------------------------------------------------------------------------------------------------------------------------
MMM17401     Worm Gear, Steering,          [CONFIDENTIAL            6        0         0        2         1        No      N/A
             Integrated Head                 TREATMENT
                                            REQUESTED]/*/
---------------------------------------------------------------------------------------------------------------------------------
MMM17431     Rework, Screw, Captive,       [CONFIDENTIAL            4        0         0        2         1        No      N/A
             Integrated Head                 TREATMENT
                                            REQUESTED]/*/
---------------------------------------------------------------------------------------------------------------------------------
MMM19591     Rework, Standoff, Bkpln,      [CONFIDENTIAL            3        0         0        2         1        No      N/A
             Integrated Head                 TREATMENT
                                            REQUESTED]/*/
---------------------------------------------------------------------------------------------------------------------------------
MMM19791     Rework, Screw, Captive,       [CONFIDENTIAL            2        0         0        2         1        No      N/A
             X-Adjust Cover, IH              TREATMENT
                                            REQUESTED]/*/
---------------------------------------------------------------------------------------------------------------------------------
MMM20221     Rework, Standoff, Cover,      [CONFIDENTIAL            4        0         1        2         3        No      N/A
             Integrated Head                 TREATMENT
                                            REQUESTED]/*/
---------------------------------------------------------------------------------------------------------------------------------
MMM21121     Cover, X-Adjust,Steering,     [CONFIDENTIAL            2        0         1        2         2        No      N/A
             Integrated Head                 TREATMENT
                                            REQUESTED]/*/
---------------------------------------------------------------------------------------------------------------------------------
MMM22311     Pin, Alignment, Boards,       [CONFIDENTIAL            2        1         2        2         1        No      N/A
             Integrated Head                 TREATMENT
                                            REQUESTED]/*/
---------------------------------------------------------------------------------------------------------------------------------
MMM22541     Stud, Board Mount,            [CONFIDENTIAL            6        0         0        2         1        No      N/A
             Integrated Head                 TREATMENT
                                            REQUESTED]/*/
---------------------------------------------------------------------------------------------------------------------------------
MMM23531     Heatsink, #1, NSC,            [CONFIDENTIAL            2        0         0        2         2        No      N/A
             24 Diode, IH                    TREATMENT
                                            REQUESTED]/*/
---------------------------------------------------------------------------------------------------------------------------------
MMM24001     Blk, Nut Holder,              [CONFIDENTIAL            2        0         1        2         1        No      N/A
             Integrated Head                 TREATMENT
                                            REQUESTED]/*/
---------------------------------------------------------------------------------------------------------------------------------
</TABLE>

<PAGE>
<TABLE>
---------------------------------------------------------------------------------------------------------------------------------
<S>          <C>                           <C>                      <C>      <C>       <C>      <C>       <C>      <C>     <C>
MMM27201     Gear, Worm, X-Adjust, IH      [CONFIDENTIAL           12        2         4        6         1        No      N/A
                                             TREATMENT
                                            REQUESTED]/*/
---------------------------------------------------------------------------------------------------------------------------------
MYY02921     Gap Pad, Thermal,             [CONFIDENTIAL            2        0         0        2         1        No      N/A
             TopCvr Heatsink                 TREATMENT
                                            REQUESTED]/*/
---------------------------------------------------------------------------------------------------------------------------------
RCC0002A     Chiller Fluid,                [CONFIDENTIAL            1        0         0        0        25        No      N/A
             Prop Glycol                     TREATMENT
                                            REQUESTED]/*/
---------------------------------------------------------------------------------------------------------------------------------
RYY02651     Rubber Strip,                 [CONFIDENTIAL            2        0         1        2         1        No      N/A
             Sponge (1/2" x 1/4" x 4")       TREATMENT
                                            REQUESTED]/*/
---------------------------------------------------------------------------------------------------------------------------------

    Notes:
---------------------------------------------------------------------------------------------------------------------------------
1.  Shipping weights are estimates.
---------------------------------------------------------------------------------------------------------------------------------
2.  Pricing subject to change.
---------------------------------------------------------------------------------------------------------------------------------
</TABLE>

/*/ [CONFIDENTIAL TREATMENT REQUESTED] INDICATES MATERIAL THAT HAS BEEN OMITTED
AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED
MATERIAL HAS BEEN FILED WITH THE COMMISSION PURSUANT TO RULE 24B-2 PROMULGATED
UNDER THE SECURITIES AND EXCHANGE ACT OF 1934, AS AMENDED.

<PAGE>

                      EXHIBIT 8 - CONFIDENTIALITY AGREEMENT

<PAGE>

                            CONFIDENTIALITY AGREEMENT

         This agreement (the "Confidentiality Agreement") is made and entered
into effective as of April 5, 2002, by and between Presstek, Inc., having an
office and place of business at 55 Executive Drive, Hudson, New Hampshire
03051-3907, USA (hereinafter referred to as "Presstek"); and Ryobi Limited, a
corporation organized and existing under the laws of Japan, having an office and
place of business at 762 Mesaki-cho, Fuchu-shi, Hiroshima-ken, 726-8628, Japan
(hereinafter referred to as "Ryobi").

WHEREAS, Presstek and Ryobi, simultaneous with the execution of this
Confidentiality Agreement, are entering into an agreement for the manufacturing
and distribution of the Ryobi Sun Press and the incorporation of Presstek's
Direct Imaging Kits into such presses (the "Manufacturing Agreement");

WHEREAS, in connection with (i) the Manufacturing Agreement, (ii) a potential
joint project to be entered into relating to a CTP device (the "CTP Device") and
(iii) a potential joint project to be entered into relating to a new direct
imaging press project (the "A2 Press Project"), Presstek and Ryobi may need to
disclose to each other certain confidential and proprietary information
including trade secrets, know-how and other confidential technical and business
information;

WHEREAS, Presstek and Ryobi are parties to separate Confidentiality Agreements
dated November 17, 1997 and December 22, 1998, and now desire to provide more
fully for the preservation of confidential information disclosed by one party to
the other in the course of their dealings under the Sun Press Manufacturing
Agreement, any agreement or understanding entered into in connection the CTP
Device (a "CTP Agreement") and any agreement entered into in connection with the
A2 Press Project (an "A2 Agreement");

NOW, THEREFORE, in consideration of the mutual promises herein contained, the
parties have agreed as follows:

1.    The Confidentiality Agreements dated November 17, 1997 and December 22,
      1998, shall be superseded by this Confidentiality Agreement after the date
      of signature by both parties.

2.    Information communicated by one party (the "Disclosing Party") to the
      other (the "Receiving Party") which the Disclosing Party considers
      confidential shall, when communicated in documentary form or on computer
      tape or disc, be marked as "Confidential". In the event information is
      communicated orally or by transfer of non-documentary materials, the
      confidential nature of such information shall be confirmed to the
      Receiving Party in writing within twenty days after such disclosure.
      "Confidential Information" shall mean any and all information in any form
      with respect to the Disclosing Party's technical or business matters which
      are designated by the Disclosing Party as "confidential" in the manner set
      forth above. Notwithstanding the provisions of this paragraph, as to those
      subjects which are listed in ATTACHMENT A to this Confidentiality
      Agreement, it is agreed that all disclosure of information with respect to
      said subjects shall be considered "Confidential Information," regardless
      of the form in which it is communicated and whether marked "confidential"
      or not, unless otherwise indicated in writing by the Disclosing Party. All
      confidential information communicated between the parties prior to the
      effective date of this Confidentiality Agreement shall be hereafter
      governed by the terms and conditions of this Confidentiality Agreement.
      The obligations of the parties under each of the prior Confidentiality
      Agreements are hereby confirmed as being in full force and effect, and
      each party confirms that it has not disclosed or

<PAGE>

      used Confidential Information of the other party in violation of such
      prior Agreements.

3.    The Receiving Party shall maintain all Confidential Information of the
      Disclosing Party in strict confidence, shall not publish, disseminate,
      disclose or otherwise make such Confidential Information available to any
      third party without the prior written consent of the Disclosing party (and
      then only within the limits of such prior written consent), and shall not
      use such Confidential Information for any purpose other than for the
      manufacture, development, use and sale of (i) SUN Presses pursuant to the
      terms of the Manufacturing Agreement, (ii) the CTP Device pursuant to any
      CTP Agreement and (iii) the A2 Press Project pursuant to the terms of any
      A2 Agreement. The Receiving Party agrees to limit the dissemination of,
      and access to, the Confidential Information solely to employees of the
      Receiving Party (together with its legal advisors) who have a "need to
      know" such information, provided that such employees shall have entered
      into appropriate confidentiality relationships with the Receiving Party so
      as to ensure that the Receiving Party has the legal right to implement the
      terms and conditions of this Confidentiality Agreement.

4.    Notwithstanding paragraph 3 of this Confidentiality Agreement, the
      obligation of confidentiality and non-use on the part of the Receiving
      Party shall not apply to information which:

      (a)   the Receiving Party can establish was publicly known or was known to
            the Receiving Party at the time of disclosure;

      (b)   becomes publicly known subsequent to the time of disclosure,
            provided that such public knowledge is not the fault of, or the
            result of an improper disclosure by, the Receiving Party;

      (c)   is subsequently received by the Receiving Party without a
            confidentiality obligation from a third party which has the right to
            disclose such information without a confidentiality obligation; or

      (d)   is required to be disclosed by applicable law, regulation or legal
            process (whether by subpoena, civil investigative demand, or other
            similar process), provided that if the Receiving Party is so
            requested to disclose any of the Confidential Information the
            Receiving Party will in the first instance take all reasonable steps
            to prevent public disclosure of such Confidential Information and
            will provide the Disclosing Party with prompt notice of any such
            request of which the Receiving Party has knowledge so that the
            Disclosing Party may seek a protective order or other appropriate
            remedy, or may waive the Receiving Party's compliance with the
            provisions of this Confidentiality Agreement, as appropriate.
            Regardless of whether the Disclosing Party waives compliance with
            the terms hereof for the purpose of such disclosure, or whether a
            protective order or other appropriate remedy is obtained, the
            Receiving Party will furnish only that portion of the Confidential
            Information which is required to be disclosed by such applicable
            law, regulation or legal process.

      For purposes of the foregoing exceptions, disclosures which are specific
      (for example, as to engineering and design practices and techniques,
      products, software, operating parameters) shall not be deemed to be within
      the foregoing exceptions to confidentiality merely because they are
      embraced by general disclosures which are in the public domain or in the
      possession of the Receiving Party. Any combination of features shall not
      be deemed to be within the foregoing exceptions to confidentiality merely
      because individual features are in the public domain or in

<PAGE>
      the possession of the Receiving Party, but only if the combination itself
      and its principle of operation are in the public domain or the possession
      of the Receiving Party.

5.    Upon termination of the Manufacturing Agreement, any CTP Agreement or any
      A2 Agreement, if requested by the Disclosing Party, all Confidential
      Information relating to the Sun Press, the CTP Device or the A2 Press
      Project, as the case may be, in any tangible form received by the
      Receiving Party and all documents, notes, sketches, prototypes, discs,
      tapes, records or other written or electronic materials prepared by the
      Receiving Party containing or reflecting such Confidential Information or
      abstracts or summaries thereof shall be promptly returned to the
      Disclosing Party, together with all copies thereof. However, the Receiving
      Party shall be entitled to retain such materials as are necessary or
      appropriate for exercise of rights under the Manufacturing Agreement, any
      CTP Agreement or any A2 Agreement,
<PAGE>
      as the case may be, and may retain one copy for archival purposes only.

6.    Nothing contained in this Confidentiality Agreement shall be construed as
      requiring either party to disclose any specific information to the other,
      nor as a grant by implication, estoppel or otherwise of any license to
      make, have made, use or sell any product or as a license under any patent,
      patent application, utility model, copyright, trade secret, trademark, or
      any other proprietary right. All such rights are or will be set forth in
      the Manufacturing Agreement, any CTP Agreement or any A2 Agreement.

7.    This Confidentiality Agreement shall be in force from the time it is
      signed by both parties for so long as the Manufacturing Agreement, any CTP
      Agreement or any A2 Agreement remain in force and for a period of five
      years after each such agreement is terminated.

8.    The parties acknowledge and agree that a breach of this Confidentiality
      Agreement by either of them may cause irreparable damage to the
      non-breaching party, that such damage would be difficult to measure, and
      that such damage may not be adequately compensated by monetary damages. In
      such event, a party shall have the right to sue for injunctive relief,
      without the necessity of posting a bond, or shall have the right to
      specific performance of this Agreement.

9.    This Confidentiality Agreement contains the entire agreement between the
      parties concerning disclosure and use of Confidential Information and
      cannot be altered except by an agreement between the parties in writing.
      This Confidential Agreement shall be interpreted in accordance with the
      laws of the State of New York, and all parties to this Confidentiality
      Agreement hereby subject themselves to the jurisdiction of the courts of
      the United States sitting in New York to enforce the provision of this
      Confidentiality Agreement.

IN WITNESS WHEREOF, the parties have caused this Confidentiality Agreement to be
executed by their duly authorized representatives.

<PAGE>

Presstek, Inc.                              Ryobi Limited

By: /s/ Robert Hallman                      By: /s/ T. Mifune
    ------------------------------              --------------------------------
    Title: CEO                                  Title: Senior Vice President
    Date: 3/28/02                               Date: April 5, 2002

<PAGE>

                                  ATTACHMENT A

I.            PRESSTEK CONFIDENTIAL INFORMATION

      All data, reports, analyses, compilations, studies, interpretations,
      forecasts, samples, formulations, processes, designs, blueprints,
      manufacturing information, technical data, know-how, inventions,
      discoveries, specifications, engineering details, trade secrets, supplier
      lists, customer lists, software and computer programs (in whatever form
      maintained, whether documentary, computer storage or otherwise, and
      expressly including materials that are observed or delivered orally)
      related to the Direct Imaging Kits.

II.           RYOBI CONFIDENTIAL INFORMATION

      All data, reports, analyses, compilations, studies, interpretations,
      forecasts, samples, formulations, processes, designs, blueprints,
      manufacturing information, technical data, know-how, inventions,
      discoveries, specifications, engineering details, trade secrets, supplier
      lists, customer lists, software and computer programs (in whatever form
      maintained, whether documentary, computer storage or otherwise, and
      expressly including materials that are observed or delivered orally)
      related to the Sun Presses.<PAGE>

EXHIBIT 10.39
*DENOTES EXPURGATED INFORMATION

                           SECOND AMENDED AND RESTATED
                                AGREEMENT BETWEEN
                             BOSTON BEER CORPORATION
                                       AND
                         HIGH FALLS BREWING COMPANY, LLC

      THIS AGREEMENT ("Agreement"), effective as of the 15th day of April, 2002
(the "Effective Date"), by and between BOSTON BEER CORPORATION, a Massachusetts
corporation with its principal place of business at 75 Arlington Street, Boston,
MA 02116 ("Boston Beer"), and HIGH FALLS BREWING COMPANY, LLC, a New York
limited liability company with its principal place of business at 445 St. Paul
Street, Rochester, NY 14605 ("High Falls"), shall modify, amend and restate the
Amended and Restated Agreement entered into on the 30th day April, 1997, by and
between BOSTON BREWING COMPANY, INC., d/b/a THE BOSTON BEER COMPANY, a
Massachusetts corporation ("Boston Brewing"), for itself and as the sole general
partner of Boston Beer Company Limited Partnership, a Massachusetts limited
partnership ("BBCLP"), and THE GENESEE BREWING COMPANY, INC., a New York
corporation ("Genesee").

      WHEREAS, as of July 25, 1995, Boston Brewing, for itself and as the sole
general partner of BBCLP, and Genesee entered into a production agreement under
which Genesee agreed to brew, package and sell Products for Boston Brewing and
BBCLP, which agreement was amended and restated by instrument dated April 30,
1997 (the "Prior Agreement");

      WHEREAS, as of December 15, 2000, Genesee assigned the Prior Agreement to
High Falls;

      WHEREAS, on December 31, 2000, BBCLP transferred all of its assets and
liabilities to Boston Beer and consequently Boston Beer assumed the rights and
obligations of BBCLP and Boston Brewing under the Prior Agreement; and

[*] Indicates that information has been omitted and filed separately with the
Securities and Exchange Commission pursuant to a request for confidential
treatment.
<PAGE>

Boston Beer Agreement
Page 2

      WHEREAS, Boston Beer and High Falls (sometimes hereinafter referred to as
the "Parties" or either of them as a "Party") wish to further amend the terms
and conditions of the Prior Agreement as set forth below.

      ACCORDINGLY, for and in consideration of the mutual agreements contained
herein, the Parties, intending to be legally bound, hereby agree as follows:

      1.    SCOPE OF AGREEMENT

            (a) During the term of this Agreement as set forth in Paragraph 4
      hereof and in accordance with the terms set forth herein, High Falls
      agrees to brew, package and sell the Products to Boston Beer and Boston
      Beer agrees to purchase the Products from High Falls. High Falls and
      Boston Beer acknowledge that they both wish to develop a mutually
      beneficial, long-term relationship under this Agreement. The Parties agree
      to act in good faith and to use their best efforts to resolve differences
      arising during the course of their relationship in a mutually agreeable
      manner. The Parties acknowledge that future needs may require one or both
      of the Parties to make capital investments in High Falls' plant and
      equipment and that in the event any such investment is contemplated by
      Boston Beer, the Parties will negotiate in good faith and use their best
      efforts to agree upon any amendments to this Agreement that may be
      required to facilitate the long-term relationship contemplated by the
      Parties.

            (b) CORE PRODUCT. For purposes of this Agreement, "Core Product"
      shall mean: (i) *, in each case packaged in cases of 4/6, 2/12 packs in a
      tray, or 24 loose twelve ounce bottles and 12 twenty-two ounce bottles, in
      half barrel or quarter barrel kegs, and any other package types or
      configurations that the parties mutually agree to use for packaging such
      products, or (ii) any other Boston Beer * product(s) that the parties
      mutually agree in writing shall replace one or more of such products as
      the Core Product.

            (c) OTHER PRODUCTS. High Falls acknowledges that Boston Beer has
      requested that High Falls evaluate the feasibility of producing other
      Boston Beer products, recognizing limitations that may exist due to
      storage of multiple ingredients and yeast varieties, the

[*] Indicates that information has been omitted and filed separately with the
Securities and Exchange Commission pursuant to a request for confidential
treatment.

<PAGE>

Boston Beer Agreement
Page 3

      availability and capacity of brewing vessels and storage tanks and the
      like. It is the intention of the Parties that High Falls shall brew,
      package and sell to Boston Beer other Boston Beer products upon terms
      mutually agreed to in writing by High Falls and Boston Beer. For purposes
      of this Agreement, "Other Products" shall mean any Boston Beer brand or
      brands other than the Core Product, whether currently offered or developed
      in the future, which the parties mutually agree to add to this Agreement
      during any calendar year in accordance with the following procedure: By
      November 1st in each calendar year, Boston Beer shall provide High Falls
      with an annual forecast for the following calendar year, showing Boston
      Beer's monthly projections by package for the Core Product and any Other
      Products. At least *% of the projected volume in each calendar year shall
      be the Core Product. In the event that the annual forecast includes any
      proposed Other Products, Boston Beer will furnish High Falls with the
      brewing formula and procedures and product specifications for the proposed
      Other Products. High Falls shall: (i) review the specifications and
      brewing formula for any proposed Other Products; (ii) propose a Fixed Cost
      for each of the proposed Other Products; and (iii) propose to Boston Beer
      the minimum order size, tank usage and other production and capacity
      parameters. Boston Beer may accept or reject High Falls' proposal with
      respect to each of the proposed Other Products. If Boston Beer accepts the
      High Falls proposal for a proposed Other Product, such Other Product shall
      be deemed to be added to this Agreement only for the calendar year covered
      by the annual forecast. If in any annual forecast, Boston Beer proposes an
      Other Product that was produced by High Falls in a prior year, and: (x)
      the specifications, brewing formula and procedures, Brewing Ingredients,
      Packaging Materials and the timing and volume of production for such Other
      Product have not changed, and (y) the capacity utilization required for
      High Falls' own products and, from and after * (if applicable), other
      contract products, are substantially the same; then High Falls shall not
      unreasonably refuse to produce such Other Product and the Fixed Charge
      proposed by High Falls for such Other Product shall be the Fixed Charge
      paid by Boston Beer for such Other Product in the most recent prior year,
      increased by the annual adjustment factor for the Core Product set forth
      in Subparagraph 2(b) hereof.

            (d) The Fixed Charge proposed by High Falls for any Other Products,
      and for the Core Product in any package size or type other than those
      identified in Subparagraph

[*] Indicates that information has been omitted and filed separately with the
Securities and Exchange Commission pursuant to a request for confidential
treatment.
<PAGE>

Boston Beer Agreement
Page 4

      1(b) hereof, shall be based on the expected incremental cost differences,
      when compared with Samuel Adams Boston Lager, associated with the brewing
      and/or packaging formulations and processes required in the production of
      such Other Products or package. If High Falls determines during the trial
      brews or initial production of any Other Product that the brewing formula,
      procedures or product specifications furnished by Boston Beer are
      materially inaccurate, then High Falls shall notify Boston Beer in writing
      and High Falls may cease production of such Other Product (after
      completion of any production in progress) until the parties mutually agree
      on adjustment of the brewing formula, procedures or product specifications
      and/or the Fixed Charge for such Other Product.

            (e) PRODUCTS. For purposes of this Agreement, the Core Product and
      all Other Products produced during any calendar year shall be collectively
      referred to as the "Products".

            (f) BARREL. For purposes of this Agreement, the term "barrel" shall
      mean 31 U.S. gallons (3,968 ounces). The following calculation shall be
      used to measure barrels of the Products packaged in containers other than
      Kegs:

CONTAINER VOLUME IN OUNCES X CONTAINERS PER CASE UNIT X NO. OF CASE UNITS

Barrel Volume in Ounces

      2.    PRICE AND MANNER OF PAYMENT

            (a) Except as otherwise provided in the following subparagraphs of
      this Paragraph 2, Boston Beer shall pay High Falls for the Products an
      amount (the "Unit Price") equal to: (i) a "Fixed Charge" as determined in
      accordance with Subparagraphs 1(c) and 1(d) hereof or as set forth in
      Subparagraph 2(b) hereof, plus (ii) except as otherwise provided in
      Subparagraph 3(a)(iv), the net cost to High Falls of all Brewing
      Ingredients [as defined in Paragraph 3(a)] purchased by High Falls and
      used in producing the Products; all federal, state and local excise taxes
      attributable to the Products that are paid by High Falls; and deposit
      charges of $* per Keg, $* per bottle pallet and $* per draft pallet, or
      such other

[*] Indicates that information has been omitted and filed separately with the
Securities and Exchange Commission pursuant to a request for confidential
treatment.
<PAGE>

Boston Beer Agreement
Page 5

      amounts as the parties mutually agree. For this purpose, "net cost to High
      Falls" shall include purchase discounts, but not discounts resulting from
      credit terms.

            (b) The Fixed Charge for Samuel Adams Boston Lager packaged in
      bottles, shall be $* per unit of twenty-four loose 12-ounce bottles, 4/6
      12-ounce bottles, 2/12 12 ounce bottles in a tray or twelve 22-ounce
      bottles (in each instance, a "Case Unit;" it being the intent that the
      Fixed Charge for other 22 ounce package configurations produced by High
      Falls be prorated) plus an amount per Case Unit to be agreed upon from
      time to time which reflects the savings inuring to the benefit of Boston
      Beer (currently $* per case) if High Falls should elect, in its sole
      discretion, to utilize in its production process bulk glass as opposed to
      set-up glass used as of the date hereof by High Falls. The Fixed Charge
      for Samuel Adams Boston Lager packaged in one-half barrel (15.5 U.S.
      gallons) or one-quarter barrel (7.75 U.S. gallons) kegs (individually
      referred to as a "Keg" and collectively referred to as "Kegs") shall be $*
      per Keg. Commencing on January 1, * and on each January 1 thereafter
      during the term of this Agreement through and including January 1, *, the
      Fixed Charge component of the Unit Price for the Products shall be
      increased by *%. If the term of this Agreement has been extended by Boston
      Beer pursuant to Subparagraph 4(b), then, effective January 1, *, the
      Fixed Charge component of the Unit Price for the Products shall be
      increased by an amount equal to * percent (*%) of the increase in the
      Consumer Price Index - All Urban Consumers as published by the United
      States Department of Commerce - Bureau of Labor Statistics (the "CPI
      Increase") for the previous 12-month period. If the term of this Agreement
      has been extended by Boston Beer pursuant to Subparagraph 4(b), on *, the
      Fixed Charge for all Products shall be increased by $* per barrel, or $*
      per Case Unit (the "Fixed Charge Adjustment"). On January 1, *, the Fixed
      Charge component of the Unit Price for the Products shall be increased by
      an amount equal to (i) * percent (*%) of the CPI Increase applied to the
      Fixed Charge in effect on * (the "Fixed Charge Component Increase"), plus
      (ii) the difference between *% of the CPI Increase less *% applied to the
      Fixed Charge Adjustment (i.e., the $* referred to above) (the "Fixed
      Charge Adjustment Increase"), except that if the calculation pursuant to
      this clause (ii) results in a negative number, the Fixed Charge Adjustment
      Increase shall be zero. For example, if the Fixed

[*] Indicates that information has been omitted and filed separately with the
Securities and Exchange Commission pursuant to a request for confidential
treatment.
<PAGE>

Boston Beer Agreement
Page 6

      Charge effective January 1, * were $* per Case Unit and the CPI Increase
      for calendar year * were *%, then the Fixed Charge effective January 1, *
      would be calculated as follows:

         CALCULATION OF FIXED CHARGE COMPONENT INCREASE:

                  Fixed Charge at *                   $*
                  times *% of CPI Increase (*%)                 X  .*
                                                                ------
                  Fixed Charge Component Increase  =          = $*

[*] Indicates that information has been omitted and filed separately with the
Securities and Exchange Commission pursuant to a request for confidential
treatment.
<PAGE>

Boston Beer Agreement
Page 7

         CALCULATION OF FIXED CHARGE ADJUSTMENT INCREASE:
         -----------------------------------------------

                  Fixed Charge Adjustment (per Case Unit)     $*
                  times *% of CPI Increase  (*%)
                           minus *% (*%--*%=*%)               X  .*
                                                              -----
                  Fixed Charge Adjustment Increase          = $*

         CALCULATION OF FIXED CHARGE EFFECTIVE JANUARY 1, *:
         --------------------------------------------------

                  Fixed Charge at *                            $*
                  plus Fixed Charge Component Increase         +*
                  plus Fixed Charge Adjustment                 +*
                  plus Fixed Charge Adjustment Increase        +*
                                                             ----
                  Fixed Charge effective 1/1/*               = $*

Effective January 1 of each calendar year during the remainder of the term of
this Agreement, with the first adjustment to be effective January 1, *, the
Fixed Charge component of the Unit Price for the Products shall be increased by
an amount equal to * percent (*%) of the increase of the CPI for the previous
12-month period. High Falls must notify Boston Beer of any adjustments pursuant
to this Subparagraph 2(b) no later than March 31 of each year (or, if later, the
date that is 30 days after the Department of Commerce publishes the Consumer
Price Index covering the relevant period), with appropriate documentation
supporting any change in such Fixed Charge.

            (c) Until and including *, notwithstanding Paragraph 2(b) above: (i)
      if volume of all bottled Products during any calendar year exceeds in the
      aggregate * barrels, the then current Fixed Charge components of the Unit
      Price on all such excess volume of bottled Products during such calendar
      year shall be reduced by $* per Case Unit; and (ii) if volume of all
      Products packaged in the Sankey Keg during any calendar year exceeds in
      the aggregate * barrels, the then current Fixed Charge components of the
      Unit Price on all Products packaged in the Sankey Keg in excess of *
      barrels during such calendar year shall be reduced by $.* per Keg. The
      foregoing reductions in the Fixed Charge shall apply only if the Core
      Product comprises at least *% of all Products purchased by Boston Beer
      during such calendar year, and are subject to the provisions of
      Subparagraph 4(e) below. If the term of this Agreement is extended by
      Boston Beer pursuant to Subparagraph 4(b), this Subparagraph 2(c) shall no
      longer apply, effective as of *.

[*] Indicates that information has been omitted and filed separately with the
Securities and Exchange Commission pursuant to a request for confidential
treatment.
<PAGE>

Boston Beer Agreement
Page 8

            (d) Boston Beer and High Falls (or their predecessors in interest)
      have undertaken improvements and modifications to * and Boston Beer
      contributed an agreed upon amount to the capital cost of such improvements
      and modifications. In consideration thereof, High Falls will pay to Boston
      Beer an annual fee (or ratable portion thereof) for each calendar year or
      portion thereof during the term of this Agreement through and including *,
      based on the volume of Products packaged in bottles during each calendar
      year under this Agreement. The obligation to pay this fee under this
      Agreement shall commence as of * and shall terminate * and is subject to
      the provisions of Subparagraph 4(e) below. The fee shall be paid within
      thirty (30) days after the end of each calendar year and shall be
      calculated as follows:

                           Volume of
                           Products Produced in Bottles
                           During Calendar Year                   Annual Fee
                           --------------------                   ----------

                           Less than * bbls                       $*
                           * up to * bbls                         $*
                           * up to * bbls                         $*
                           More than * bbls                       $*

If the term of this Agreement is extended by Boston Beer pursuant to
Subparagraph 4(b), this Subparagraph 2(d) shall no longer apply, effective as of
*.

            (e) Unit Prices are F.O.B. the carrier's trucks at High Falls' docks
      (i.e., the Unit Price includes the cost and risk of loading trucks at High
      Falls' dock) and include High Falls' labor costs, overhead, profit and
      other costs incurred in the brewing and packaging of the Product.

            (f) On the date the Products are shipped, High Falls will invoice
      Boston Beer for the Fixed Charge, all federal, state and local excise
      taxes attributable to the Products that are paid by High Falls and the Keg
      and pallet deposit charges. High Falls will invoice Boston Beer for all
      Brewing Ingredients purchased by High Falls at High Falls' standard cost
      when the Products are shipped (with monthly reconciliation to reflect High
      Falls' actual

[*] Indicates that information has been omitted and filed separately with the
Securities and Exchange Commission pursuant to a request for confidential
treatment.
<PAGE>

Boston Beer Agreement
Page 9

      cost). High Falls may periodically adjust its standard cost for Brewing
      Ingredients to more accurately reflect its actual costs. High Falls shall
      notify Boston Beer in writing of any adjustment in its standard cost at
      least ten (10) days prior to the date such adjustment will take effect.
      All invoices will be sent to Boston Beer by telecopier and Boston Beer
      will pay each Friday by electronic funds transfer all invoices that relate
      to shipments of the Products made by High Falls during the previous week.
      If High Falls should elect, in its sole discretion, to utilize electronic
      invoicing, Boston Beer will pay on each Wednesday all invoices that relate
      to shipments made during the previous week.

            (g) On the later of the Effective Date or the date upon which both
      Parties have executed this Agreement, Boston Beer will pay to High Falls
      the sum of $*. In addition, Boston Beer will pay to High Falls * percent
      (*%) of the amount that Genesee or its affiliates pays to Boston Beer,
      directly or indirectly, in consideration of its release of the guaranty of
      Genesee of High Falls' obligations to Boston Beer as set forth in the
      Guaranty executed by Genesee on December 15, 2000 (the "Genesee
      Guaranty"). Boston Beer's release of the Genesee Guaranty is contingent on
      its receipt of High Falls' audited financial statements for 2001 and
      current pro-formas that reflect positive cash flow, results of operations
      and debt coverage at levels reasonably acceptable to Boston Beer.

      3.    BREWING INGREDIENTS, PACKAGING MATERIALS AND BREWING SUPPLIES

            (a) For purposes of this Agreement, "Brewing Ingredients" shall be
      defined as all * used to produce the Products. Brewing Ingredients shall
      be purchased and supplied as follows:

            (i) All * used in the brewing of the Products shall be purchased by
Boston Beer or High Falls (at Boston Beer's cost) directly from High Falls'
commercial * suppliers. High Falls and Boston Beer will use their best efforts
to agree upon * specifications for * that will allow High Falls to commingle
storage of * used to produce the Products with * used to produce High Falls' own
products. If High Falls and Boston Beer cannot agree upon

[*] Indicates that information has been omitted and filed separately with the
Securities and Exchange Commission pursuant to a request for confidential
treatment.
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Boston Beer Agreement
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standard * specifications, the Fixed Charge shall be increased to reflect any
additional cost incurred by High Falls for separate handling and storage of *
used in the Products.

            (ii) All * used in the brewing of the Products shall be purchased by
High Falls from Boston Beer. Delivery of * shall be coordinated between High
Falls and Boston Beer.

            (iii) All * used in the brewing of the Products shall be supplied by
Boston Beer at *. All * supplied by Boston Beer shall remain the property solely
and exclusively of Boston Beer and shall be segregated and identified by High
Falls as such. Delivery of * to High Falls shall be coordinated between High
Falls and Boston Beer.

            (iv) All * used in the brewing and packaging of the Products shall
be purchased by High Falls directly from High Falls' commercial * suppliers.
Commencing on the Effective Date, Boston Beer shall pay * percent (*%) of the
cost of all * used in the brewing and packaging of the Products, and High Falls
shall pay the other * percent (*%).

            (b) For purposes of this Agreement, "Packaging Materials" shall be
      defined as all bottles, crowns, labels, cases, cartons, Kegs, tap covers,
      pallets and dust covers and the like used in the packaging and shipment of
      the Products. Packaging Materials shall be purchased and supplied as
      follows:

            (i) Bottles, crowns, labels, cases, cartons, tap covers and the like
shall be purchased by Boston Beer and supplied to High Falls as needed to meet
the Packaging Schedule for the Products.

            (ii) Unless otherwise mutually agreed, Kegs and pallets in
quantities adequate for the volume of the Products to be packaged under this
Agreement shall be purchased by Boston Beer and supplied to High Falls from time
to time. All such Kegs and pallets shall be returned and reused in accordance
with High Falls' standard policies for Keg and pallet return and reuse. From
time to time during the term of this Agreement, Boston Beer shall purchase and
supply to High Falls additional Kegs and pallets in numbers adequate to replace
Kegs and pallets lost or otherwise rendered unusable. All Kegs and pallets shall
conform to the specifications of

[*] Indicates that information has been omitted and filed separately with the
Securities and Exchange Commission pursuant to a request for confidential
treatment.
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Boston Beer Agreement
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Kegs and pallets used by High Falls in packaging and shipping its own products.
High Falls may reject any Kegs or pallets that are damaged, are unacceptably
dirty or do not otherwise conform to High Falls' specifications. All rejected
Kegs shall be held by High Falls for periodic removal by Boston Beer. All
rejected pallets shall be disposed of by High Falls at no charge to Boston Beer.
Upon each delivery to High Falls of Kegs and pallets purchased by Boston Beer,
High Falls shall issue to Boston Beer a credit of $* per Keg, $* per bottle
pallet and $* per draft pallet. High Falls shall maintain records of all Kegs
and pallets received from Boston Beer and provide a monthly reconciliation
showing Kegs and pallets received, Kegs rejected and returned to Boston Beer,
pallets disposed of by High Falls, Kegs and pallets on hand at High Falls and
Kegs and pallets in the float.

      (iii) * shall purchase and supply at its own cost Lock n' Pop, shrink
wrap, label adhesive, hot melt glue and bungs used in packaging and shipping of
the Products.

            (c) Boston Beer has the right, subject to the approval of High
      Falls, which approval will not be unreasonably withheld, to make changes
      in the Packaging Materials. If the proposed new Packaging Materials can be
      produced without modification or addition to High Falls' existing
      equipment, High Falls shall produce the Products using the new Packaging
      Materials upon mutual agreement by High Falls and Boston Beer to any
      adjustment to the Fixed Charge required to compensate High Falls for any
      difference in production cost compared to the cost to produce the Core
      Product in the comparable bottle package. If the proposed new Packaging
      Material requires any modifications or additions to High Falls' existing
      equipment, then the obligations of the parties with respect to such
      modifications or additions shall be governed by Paragraph 9 of this
      Agreement.

            (d) For purpose of this Agreement, "Brewing Supplies" shall be
      defined as zinc sulfate, gypsum, Diatomaceous Earth, and Chill-Garde. *
      shall purchase and supply at its own cost all Brewing Supplies used in the
      brewing of the Product.

            (e) Boston Beer shall have sole responsibility for the selection and
      approval of all Brewing Ingredients, Packaging Materials and Brewing
      Supplies used to produce the

[*] Indicates that information has been omitted and filed separately with the
Securities and Exchange Commission pursuant to a request for confidential
treatment.
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      Products. Boston Beer shall have sole responsibility for the content and
      design of all labels, tap covers, crowns, cartons, cases and other
      Packaging Materials.

            (f) Upon the termination of this Agreement for any reason: (i)
      Boston Beer will purchase from High Falls (w) all Kegs and pallets
      furnished by Boston Beer that are on hand at High Falls at their
      respective credit amounts set forth in Subparagraph 3(b)(ii) above, (x)
      all finished Products at the Fixed Charge, (y) all inventory of work in
      process of the Products at High Falls' cost, and (z) all inventory of
      Brewing Ingredients, Packaging Materials and Brewing Supplies purchased by
      High Falls that are not reasonably useable by High Falls in its own
      products at High Falls' cost; and (ii) High Falls will make available for
      pick up by Boston Beer at High Falls' dock all finished Products, all
      Brewing Ingredients, Packaging Materials and Brewing Supplies referred to
      in Subparagraph 3(e) hereof, and all Kegs, pallets and dust covers on hand
      at High Falls that were furnished by Boston Beer. In the event sales of
      the Products are substantially less than forecasted by Boston Beer
      resulting in abnormally excess inventories of Brewing Ingredients,
      Packaging Materials and Brewing Supplies purchased by High Falls, Boston
      Beer will purchase such excess from High Falls at High Falls' cost.

      4.    TERM

            (a) The term of this Agreement shall commence on the Effective Date
      and, unless sooner extended by the following provisions of this Paragraph
      4 or terminated pursuant to Paragraph 10 hereof, this Agreement shall
      expire on *.

            (b) Provided that Boston Beer is not then in default under this
      Agreement, Boston Beer may, in its

            (c) sole discretion, extend the term of this Agreement for a period
      of * (*) months (i.e., until *), provided that it gives High Falls written
      notice thereof on or before *.

            (d) If Boston Beer has extended the term of this Agreement pursuant
      to Subparagraph 4(b), then, provided (i) that Boston Beer is not then in
      default under this Agreement, and (ii) the aggregate volume of Products
      produced by High Falls for Boston

[*] Indicates that information has been omitted and filed separately with the
Securities and Exchange Commission pursuant to a request for confidential
treatment.
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      Beer during calendar year * is equal to or greater than * barrels, Boston
      Beer may, in its sole discretion, extend the term of this Agreement for an
      additional * years (i.e., until *), provided that it gives High Falls
      written notice thereof on or before *.

            (e) The Parties acknowledge that Boston Beer' s obligations pursuant
      to this Agreement to make payments to High Falls and the Parties'
      respective rights and obligations under Paragraphs 3(e), 9, 10, 11, 12,
      14, 16, 17 and 26 shall survive the expiration or termination of this
      Agreement.

            (f) If Boston Beer does not elect to extend the term of this
      Agreement pursuant to Subparagraph 4(b), any adjustments based on volume
      for * shall use * of the volume (forecasted or actual, as the case may be)
      in lieu of twelve-month volume.

      5.    MINIMUM ORDERS

            (a)   (i)   Effective *, the Core Product shall comprise at least *%
                        of all the Products produced, and the maximum quantity
                        of the Products that High Falls shall be required to
                        produce under this Agreement in any calendar year shall
                        be * barrels. No * shall be required for * of the
                        Products.

                  (ii)  On or before November 1 of each year, Boston Beer shall
                        provide High Falls with a forecast for its aggregate
                        volume requirements for the following calendar year (the
                        "Annual Forecast"). The Annual Forecast for calendar
                        year * is attached as Schedule 1 hereto. The Annual
                        Forecast shall be no more than * percent (*%) greater
                        nor more than * percent (*%) less than the actual
                        purchases made by Boston Beer in the 12-full-month
                        period immediately preceding such Annual Forecast. For
                        example, if the actual purchases for the 12-month period
                        from November * to October * were * barrels, Boston
                        Beer's Annual Forecast for the calendar year * shall be
                        no greater than * barrels and no less than * barrels.

[*] Indicates that information has been omitted and filed separately with the
Securities and Exchange Commission pursuant to a request for confidential
treatment.
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Boston Beer Agreement
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                        The Annual Forecast shall contain monthly projections by
                        package for each Core Product and any Other Products,
                        with the understanding that Boston Beer may, at any
                        time, through the Production Plan process described in
                        Subparagraph 5(b), substitute one or more of the Core
                        Products for any other Core Product or permitted Other
                        Product for the forecasted Products.

                  (iii) Effective *, if Boston Beer's actual purchases during a
                        calendar year are less than * percent (*%) of the total
                        volume set forth in the Annual Forecast ("Annual Minimum
                        Volume"), Boston Beer shall pay to High Falls a fee of
                        $* per barrel for each barrel below the Annual Minimum
                        Volume (the "Volume Short-Fall Fee"), except that the
                        Volume Short-Fall Fee shall not exceed $* in calendar
                        year *, nor, if the term of this Agreement is not
                        extended by Boston Beer pursuant to Subparagraph 4(b),
                        $* for the first eight months of calendar year *. The
                        Volume Short-Fall Fee, if any, shall be paid on or
                        before January 31 of the following year (or on or before
                        * for the first * months of * if the term of this
                        Agreement is not extended by Boston Beer pursuant to
                        Subparagraph 4(b)).

                  (iv)  Boston Beer may elect to pay High Falls a fee which,
                        when added to its actual Product purchases for the
                        applicable calendar year, will be treated as actual
                        purchases made for the purposes of forecasting and
                        determination of volume obligations, as follows: (a) $*
                        per barrel for the first * barrels, (b) $* per barrel
                        for the next * barrels, and (c) $* per barrel for each
                        barrel thereafter, offset by the Volume Short-Fall Fee,
                        if any, paid by Boston Beer for the same calendar year.
                        Such payment, if elected, shall be made by Boston Beer
                        to High Falls on or before January 31 of the following
                        year.

[*] Indicates that information has been omitted and filed separately with the
Securities and Exchange Commission pursuant to a request for confidential
treatment.
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Boston Beer Agreement
Page 15

                        For example, if Boston Beer's Annual Forecast for *
                        barrels were * barrels, but it only purchased * barrels,
                        Boston Beer could (after paying the Volume Short-Fall
                        Fee required by Subparagraph 5(a)(iii)) pay a fee,
                        calculated as set forth below, for up to * barrels (*%
                        increase over * forecasted barrels, or * barrels, less
                        actual purchases of *):

                                 $*/bbl for first * bbls  = $   *
                         +       $*/bbl for next * bbls   = $   *
                         +       $*/bbl for next * bbls   = $   *
                                                            -----
                                                          =   $*

                         less $*/bbl Volume Short-Fall Fee of
                         * barrels (amount below *% of
                         * forecasted barrels)            = $  (*)
                                                          ------

                         TOTAL FEE paid by Boston Beer to
                         obtain maximum barrelage for *
                         of *                             =    $  *

            (b) On a weekly basis, Boston Beer shall provide High Falls with a
      twelve (12) week Production Plan for the Products (the "Production Plan").
      The Production Plan shall be a rolling twelve-week schedule setting forth
      brewing and packaging requirements for the Products for each week during
      the twelve weeks covered by the Production Plan. All brewing requirements
      for the Products during the first six weeks of the Production Plan shall
      constitute firm orders by Boston Beer. All brewing requirements for the
      Products during the second six weeks of the Production Plan and all
      packaging requirements set forth in the Production Plan shall be a
      forecast of Boston Beer's best estimate of brewing and packaging
      requirements for the Products and shall be used by High Falls for capacity
      planning purposes. Boston Beer shall update the Production Plan each week
      by providing its best estimate of brewing and packaging requirements for
      the twelfth week and by revising the schedule for brewing and packaging
      requirements in the sixth through eleventh weeks of the Production Plan.
      The brew size that Boston Beer shall utilize in the Production Plan shall
      be High Falls' maximum brew based on High Falls' current brewing vessels,
      currently estimated to yield approximately * * (*) barrels of the Core
      Product (a "Brew"). The minimum brewing requirement that Boston Beer may
      specify

[*] Indicates that information has been omitted and filed separately with the
Securities and Exchange Commission pursuant to a request for confidential
treatment.
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Boston Beer Agreement
Page 16

during any week shall be * (*) Brews. The maximum brewing requirement that
Boston Beer may specify shall not exceed * barrels in any consecutive * (*) week
period. High Falls shall have the right, in its sole discretion, to set the
actual time and date on which each Brew shall be brewed, provided that High
Falls shall use its best efforts to (i) minimize the length of time that the
Products remain in storage prior to packaging, and (ii) meet the shipment dates
specified on the Packaging Schedule.

            (c) Boston Beer shall place all orders for packaging and shipment of

the Product by the eighth business day of each month (the "Packaging Schedule").
The Packaging Schedule shall set forth the quantity of the Products by package
type and the week in which each order shall be shipped in the following month.
Packaging shall be scheduled in increments of * cases for 22 oz. bottles; *
cases for 12 oz. bottles in new glass; and * cases for 12 oz. bottles in
refillable glass. The minimum order for packaging the Products, in Kegs shall be
* (*) Kegs.

      6.    RISK OF LOSS

            Boston Beer shall have sole responsibility for selecting carriers
and making all arrangements for shipment of the Products to its customers.
Boston Beer shall pay for all costs associated with shipment of the Products
from High Falls's facility. High Falls and Boston Beer acknowledge and agree
that, consistent with the F.O.B. pricing terms, the risk of loss in loading the
carrier's trucks shall be borne by High Falls. However, the carrier's driver
shall have the right to inspect each shipment for damage prior to leaving the
loading dock and, accordingly, Boston Beer shall bear the risk of loss on any
shipment of Products, once the carrier's truck leaves the loading dock.

      7.    BREWERY OF RECORD

            (a) High Falls shall provide all Products brewed hereunder under the
name of "The Boston Beer Company," as the Brewery of Record. High Falls shall
secure and maintain any permits, licenses, approvals and the like required by
any federal, state or local governmental agency on behalf of Boston Beer. *
out-of-pocket costs, including, without limitation, legal expenses, incurred in
connection therewith.

[*] Indicates that information has been omitted and filed separately with the
Securities and Exchange Commission pursuant to a request for confidential
treatment.
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Boston Beer Agreement
Page 17

      (b)   High Falls and Boston Beer shall maintain an alternating
proprietorship whereby the Products are produced at High Falls's facility under
a Brewer's Notice for such premises issued to Boston Beer. High Falls shall
maintain separate records for the Products produced under the Boston Beer
alternating proprietorship and shall file monthly reports and federal excise tax
returns in a timely manner on behalf of the Boston Beer alternating
proprietorship. High Falls shall, to the extent reasonably possible, but subject
to and in compliance with all applicable federal, state or local laws, rules and
regulations, identify Boston, Massachusetts, as the sole label source for the
Product. * out-of-pocket costs, including, without limitation legal expenses,
incurred in connection with maintaining the Boston Beer alternating
proprietorship.

      8.    FORCE MAJEURE

            (a) High Falls shall not be liable to Boston Beer in the event that
High Falls shall delay in or fail to deliver Products to Boston Beer hereunder
for any reason or cause beyond its control, including but not limited to a
slowdown, stoppage or reduction of High Falls's production or delivery due to
strikes, fire, flood, labor stoppage or slowdown, inability to obtain materials
or packages, shortage of energy, acts of God, a limitation or restriction of its
production by action of any military or governmental authority, or any other
such causes.

            (b) In the event of any such slowdown, stoppage or reduction of High
Falls's production or deliveries, High Falls will allocate its remaining
capacity pro rata between High Falls's own products, the Products, and, from and
after *, the other contract products produced by High Falls, provided that
Boston Beer shall use reasonable efforts to move production of the Products to
its other suppliers for the duration of any such slowdown, stoppage or reduction
so as to minimize the amount of the Products that High Falls is required to
produce for Boston Beer during such slowdown, stoppage or reduction. Such pro
rata allocation of High Falls's remaining production capacity shall be based on
the proportionate volume of High Falls's own products, the Products, and other
contract products produced by High Falls during the * (*) month period
immediately preceding the

[*] Indicates that information has been omitted and filed separately with the
Securities and Exchange Commission pursuant to a request for confidential
treatment.
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Boston Beer Agreement
Page 18

      month in which occurred the event which gave rise to the slowdown,
      stoppage or reduction of High Falls's production or delivery. In
      allocating the proportionate share of its remaining capacity to be devoted
      to the Products, High Falls shall use its best efforts to accommodate the
      mix of Core Products and Other Products specified by Boston Beer.

      9.    CHANGE PARTS AND BREWERY MODIFICATIONS

            The Parties anticipate that production of Other Products or the use
of new Packaging Materials may require changes or modifications to High Falls's
brewing equipment and facilities, or the installation of new equipment by High
Falls to accommodate Other Products or new Packaging Materials. Subject to the
obligations of Boston Beer and High Falls under Subparagraph 1(a) of this
Agreement, High Falls shall have no obligation to make any modifications to its
equipment or facilities to accommodate the production of the Products unless
agreed to by High Falls in writing. If the change parts, modifications or new
equipment required to produce any Other Products or use any new Packaging
Materials would, in High Falls's reasonable judgment, have a material adverse
impact on High Falls's operations, including without limitation, space
availability, plant capacity, or cost of production, then High Falls shall not
be required to produce any such Other Products or use any such new Packaging
Materials. If High Falls determines that the required changes, modifications or
new equipment would not have a material adverse impact, then the allocation of
cost, ownership and the other terms and conditions relating to such change
parts, modifications or new equipment shall be determined as provided herein:

            (a) Boston Beer will pay for all change parts, brewery,
      modifications or new equipment that are unique to producing the Products
      at High Falls's facility, provided that High Falls notifies Boston Beer in
      advance of making any such expenditures. Boston Beer shall own all change
      parts and brewery modifications paid for by Boston Beer and High Falls
      shall allow Boston Beer to remove all such change parts and brewery
      modifications at the termination or expiration of this Agreement, provided
      that Boston Beer shall restore, or reimburse High Falls for its cost to
      restore, High Falls's equipment or facilities to their

[*] Indicates that information has been omitted and filed separately with the
Securities and Exchange Commission pursuant to a request for confidential
treatment.
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Boston Beer Agreement
Page 19

      condition prior to the installation of such change parts or modifications,
      ordinary wear and tear excluded.

            (b) The cost and ownership of any change parts, brewery
      modifications or new equipment that can also be used by High Falls to
      produce its own products shall be allocated between High Falls and Boston
      Beer by prior written agreement based on the following: (i) if High Falls
      determines that the change parts, modifications or new equipment would
      have been purchased by High Falls even without the need to accommodate the
      Products or new Packaging Materials, then High Falls shall pay the entire
      cost of such change parts, modifications or new equipment and High Falls
      shall have exclusive ownership thereof; (ii) if High Falls determines that
      it would benefit from the change parts, modifications or new equipment but
      High Falls would not have purchased them if not for the need to
      accommodate the Products or new Packaging Materials, then the cost and
      ownership of such change parts, modifications or new equipment shall be
      allocated between the Parties as the Parties mutually agree based on the
      relative benefit that each party will derive from such change parts,
      modifications or new equipment.

            (c) With respect to any change parts, modifications or new equipment
      paid for in part by Boston Beer under Subparagraph 9(b)(ii) hereof,
      including the improvements and modifications to * referred to in
      Subparagraph 2(d) hereof, the amount paid by Boston Beer shall be
      amortized based on a mutually agreeable amortization schedule. The
      amortization schedule for the improvements and modifications to * is
      attached as Schedule 2 hereto.

            (i) If Boston Beer elects to extend the term of this Agreement
pursuant to Subparagraph 4(b) hereof, then, if High Falls is not in default
under this Agreement on *, any change parts, modifications or new equipment paid
for in part by Boston Beer under Subparagraph 9(b)(ii) hereof prior to * will no
longer be subject to repayment by High Falls under any circumstances, all right,
title and ownership thereof will automatically transfer to High Falls as of *,
and Boston Beer will have no further interest therein.

[*] Indicates that information has been omitted and filed separately with the
Securities and Exchange Commission pursuant to a request for confidential
treatment.
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Boston Beer Agreement
Page 20

            (ii) Subject to Subparagraph 9(c)(i) hereof, upon expiration of the
amortization schedule with respect to each change part, modification or new
piece of equipment paid for in part by Boston Beer, all right, title and
ownership thereof shall automatically transfer to High Falls and Boston Beer
shall have no further interest therein.

            (iii) Upon: (A) the expiration of this Agreement; or (B) the
termination of this Agreement by Boston Beer under Subparagraphs 10(c) or 10(d)
hereof, High Falls shall reimburse Boston Beer for the unamortized balance of
the cost of any change parts, modifications or new equipment paid for in part by
Boston Beer under Subparagraph 9(b)(ii), provided that the amortization shall
continue during any applicable Notice Period and the unamortized balance shall
be calculated as of and paid on the effective date of any such termination. If
Boston Beer does not extend the term of this Agreement, High Falls'
reimbursement obligations shall include any equipment for which High Falls had a
reimbursement obligations pursuant to Subparagraph 9(b)(ii) (including the *)
under the Prior Agreement. If Boston Beer extends the term of this Agreement,
then, effective *, High Falls' reimbursement obligations shall specifically
exclude any change parts, modifications or new equipment paid for in whole or in
part by Boston Beer prior to * (including the *). Upon payment by High Falls of
the unamortized balance, all right, title and ownership of such change parts,
modifications or new equipment shall automatically transfer to High Falls and
Boston Beer shall have no further interest therein. Notwithstanding the
foregoing, High Falls shall have no obligation to reimburse Boston Beer for the
unamortized balance of the cost of change parts, modifications or new equipment
if, during the twelve (12) calendar months immediately preceding the effective
date of termination: (X) Boston Beer purchased less than * barrels of the
Products; or (Y) Boston Beer failed to purchase at least * percent (*%) of the
volume of the Products that was purchased by Boston Beer during the twelve (12)
calendar months immediately preceding said twelve (12) calendar month period;
and in either such event, all right, title and ownership of such change parts,
modifications or new equipment shall automatically transfer to High Falls on the
effective date of such termination and Boston Beer shall have no further
interest therein.

[*] Indicates that information has been omitted and filed separately with the
Securities and Exchange Commission pursuant to a request for confidential
treatment.
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Boston Beer Agreement
Page 21

            (iv) If this Agreement is terminated for any other reason, then High
Falls shall have no obligation to reimburse Boston Beer for the unamortized
balance of the cost of any change parts, modifications or new equipment paid for
in part by Boston Beer under Subparagraph 9(b)(ii) hereof, and all right, title
and ownership of such chance parts, modifications or new equipment shall
automatically transfer to High Falls on the effective date of such termination
and Boston Beer shall have no further interest therein.

            (d) The parties agree to execute appropriate UCC financing
      statements to reflect their respective interests in any change parts,
      brewery modifications or new equipment paid for, in whole or in part, by
      Boston Beer. Boston Beer shall execute and deliver to High Falls UCC
      termination statements, bills of sale and any other documentation
      reasonably requested by High Falls upon the transfer of ownership to High
      Falls of any change parts, modification, or new equipment pursuant to
      Subparagraph 9(c) hereof.

      10.   TERMINATION

            (a) If Boston Beer has extended the term of this Agreement pursuant
      to Subparagraph 4(b) or 4(c) hereof, then Boston Beer may terminate this
      Agreement effective no less than * (*) months after written notice to High
      Falls.

            (b) If Boston Beer has extended the term of this Agreement pursuant
      to Subparagraph 4(b) or 4(c) hereof, High Falls may terminate this
      Agreement, effective no less than * (*) months after written notice to
      Boston Beer, if Boston Beer has failed to purchase or to have been deemed
      to have purchased pursuant to Subparagraph 5(a)(iv) hereof at least *
      barrels of Product in any period of twelve consecutive months.

            (c) In addition to exercising its rights under Paragraph 21 hereof,
      either Party may also terminate this Agreement effective immediately upon
      written notice to the other Party in the event that the other Party is in
      default of any of its obligations under this Agreement, which default
      continues for a period of * (*) calendar days following receipt of written
      notice of such default.

[*] Indicates that information has been omitted and filed separately with the
Securities and Exchange Commission pursuant to a request for confidential
treatment.
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            (d) Either Party may terminate this Agreement effective immediately
      upon written notice to the other Party in the event that: (i) the other
      Party makes an assignment for the benefit of creditors or files a
      voluntary bankruptcy, insolvency, reorganization or similar petition
      seeking protection from creditors; (ii) the other Party fails to vacate
      any involuntary bankruptcy, insolvency or reorganization petition filed
      against such Party within sixty (60) days after the filing of such
      petition; or (iii) the other Party liquidates, dissolves or ceases to do
      business as a going concern.

            (e) Between the date of receipt of a notice of termination pursuant
      to this Paragraph 10 and the effective date of such termination (such
      period, the "Notice Period"), the volume of Products purchased by Boston
      Beer for the * month period following notice of termination or any
      successive * month period (or such lesser period as may be remaining)
      prior to the effective date of termination shall be not less than *% of
      the volume purchased in the immediately preceding * month period. If
      Boston Beer fails or is unable or unwilling, for any reason, to purchase
      the required volume of the Products during the Notice Period, then Boston
      Beer shall pay a termination fee of $* per barrel for each barrel under
      the amount required to be purchased during the Notice Period. The
      termination fee, if any, shall be paid each January 1, April 1, July 1 and
      October 1 during the Notice Period. The quarterly payment shall be
      calculated by multiplying the $* per barrel termination fee by the
      difference between (x) the number of barrels of the Products that Boston
      Beer would have to purchase during the three calendar months preceding
      each payment date if the volume of the Products that Boston Beer must
      purchase during the entire Notice Period was spread evenly over the entire
      Notice Period (the "Quarterly Volume"), and (y) the actual number of
      barrels of the Products purchased by Boston Beer during the three calendar
      months preceding each payment date, provided that if the amount of the
      Products purchased by Boston Beer in any calendar quarter exceeds the
      Quarterly Volume, then such excess shall be carried forward and applied to
      reduce any termination fee that would otherwise be payable in any
      subsequent calendar quarter.

            (f) Upon termination pursuant to this Paragraph 10, Boston Beer
      shall promptly pay to High Falls all unpaid invoices in full and all
      unpaid costs incurred by High

[*] Indicates that information has been omitted and filed separately with the
Securities and Exchange Commission pursuant to a request for confidential
treatment.
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Page 23

      Falls pursuant to this Agreement in the brewing, packaging, shipping and
      storage for the Product. High Falls will use all reasonable efforts to
      minimize such costs upon termination and Boston Beer will have the right
      to review documentation evidencing such costs.

      11.   AGENCY AND INDEMNIFICATION

            High Falls and Boston Beer understand and agree that neither Party
is, by virtue of this Agreement or anything contained herein, including High
Falls affixing to any Product and/or registering the name of "The Boston Beer
Company" or "Boston Beer Company," constituted or appointed the agent of the
other Party for any purpose whatsoever, nor shall anything herein contained be
deemed or construed as granting Boston Beer or High Falls any right or authority
to assume or to create any obligation or responsibility, express or implied, for
or on behalf of or in the name of the other, or to bind the other in any manner
or way whatsoever. Boston Beer shall indemnify and hold harmless High Falls from
and against any and all claims, expenses, causes of action or liabilities of any
nature whatsoever (collectively, "Damages"), to the extent that Damages arise
solely from the independent conduct of Boston Beer; provided that Damages shall
not include any loss, liability, cost or expense incurred by High Falls as a
consequence of the exercise by Boston Beer of any of its rights under this
Agreement.

      12.   PRODUCT LIABILITY

            (a) High Falls and Boston Beer shall each maintain product liability
      insurance coverage in the respective amount of not less than $* per
      occurrence and $* combined single limit, and in the amount of not less
      than $* combined single limit in the aggregate relating to the Products
      produced by High Falls for Boston Beer hereunder.

            (b) High Falls shall indemnify and hold harmless Boston Beer and all
      of its affiliates from and against any and all loss, liability, cost or
      expense of any nature whatsoever, including reasonable attorney's fees
      (collectively, "Product Liability Damages"), arising out of or associated
      with the manufacture and/or packaging of the Products by High Falls,
      regardless of when manufactured or packaged, and whether under this
      Agreement or otherwise, except to the extent that (i) Product Liability
      Damages were

[*] Indicates that information has been omitted and filed separately with the
Securities and Exchange Commission pursuant to a request for confidential
treatment.
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Page 24

      caused solely by improper storage, handling or alteration of the Products
      after delivery to Boston Beer, (ii) Product Liability Damages are based on
      or result from a claim that the Products are inherently defective, or
      (iii) Product Liability Damages were caused by Brewing Ingredients,
      Packaging Materials (other than bottles) or Brewing Supplies specified or
      otherwise approved by Boston Beer.

            (c) Boston Beer shall indemnify and hold harmless High Falls and all
      of its affiliates from and against any and all Product Liability Damages
      to the extent arising out of the causes excepted from High Falls's duty to
      indemnify Boston Beer under clauses (i), (ii) and (iii) of subparagraph
      (b) of this Paragraph 12.

            (d) Notwithstanding the provisions of subparagraphs (b) and (c) of
      Paragraph 12, in no event shall either Party be liable to indemnify the
      other Party for consequential damages suffered by the other Party in an
      amount greater than the lesser of (i) $* or (ii) $* plus * (*) times the
      aggregate Fixed Charge paid by Boston Beer for all Products during the *
      (*) months preceding the month in which occurred the event giving rise to
      the claim for indemnification.

      13.   RECIPE AND QUALITY

            (a) High Falls shall produce the Products using the ingredients and
      brewing formula and procedures specified in the Brewing Package provided
      by Boston Beer Company to High Falls on June 8, 1995, as updated from time
      to time. High Falls shall produce any new Core Product or any Other
      Products using the brewing formula and procedures specified in the Brewing
      Package provided by Boston Beer to High Falls for such Core Product or
      Other Products. Boston Beer shall have the right to change ingredients
      and/or brewing formula and procedures upon reasonable prior written
      notice, provided that the cost of any such change shall be borne by Boston
      Beer and, provided further, that the specified ingredients are readily
      available in the necessary timeframe.

            (b) High Falls shall use its best efforts to meet the specifications
      for the Core Product attached hereto as Exhibit A, as amended from time to
      time. High Falls shall use its

[*] Indicates that information has been omitted and filed separately with the
Securities and Exchange Commission pursuant to a request for confidential
treatment.
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      best efforts to meet the specifications for any new Core Product or any
      Other Products which are furnished in writing by Boston Beer at the time
      the parties agree to add a new Core Product or Other Products to this
      Agreement. Boston Beer has the right to reject batches of the Products
      which it determines to taste materially different from representative
      sample of the Products, such rejection not to be arbitrary or
      unreasonable. Any rejected batches *.

            (c) The Products shall be brewed and packaged according to Boston
      Beer's specifications, including the maintenance of standards and quality
      control programs furnished to High Falls in writing by Boston Beer. Boston
      Beer shall have ultimate responsibility and authority over every detail of
      the production process for the Products, with such responsibility and
      authority as to those parameters affecting beer taste and quality to be
      the same as if Boston Beer were the owner of High Falls's brewing
      facility. Boston Beer shall have the right, at any time, to monitor and
      review the practices and procedures of High Falls in the production and
      packaging of the Products and inspect High Falls's brewing facility. If a
      decision made by Boston Beer in the exercise of its authority under this
      Subparagraph 13(c) results in *, High Falls shall be entitled to *. In
      addition, in the exercise of its authority under this Subparagraph 13(c),
      Boston Beer shall not interfere with High Falls's production process for
      its own proprietary brands or other contract products.

            (d) Consistent with the provisions of Subparagraph 13(c), High Falls
      and Boston Beer will, in any and all public statements or comments,
      recognize that Boston Beer controls the ingredients, recipe, brewing
      processes and procedures and quality parameters for all Products produced
      for Boston Beer by High Falls, and that Boston Beer is the brewer of all
      such Products. Neither Party will make any public statements inconsistent
      with the foregoing.

      14.   TRADEMARKS

            (a) High Falls acknowledges that no trademark or trade name rights
      in SAMUEL ADAMS, SAM ADAMS, "The Boston Beer Company" and any other

[*] Indicates that information has been omitted and filed separately with the
Securities and Exchange Commission pursuant to a request for confidential
treatment.
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Boston Beer Agreement
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      trademarks, trade names, domain names, service marks, logos or other
      intellectual property of Boston Beer (collectively, the "Trademarks") are
      granted by this Agreement.

            (b) Boston Beer hereby represents, warrants and covenants to High
      Falls that it has and will maintain its right to use the Trademarks and
      will indemnify and hold harmless High Falls from any alleged infringement
      by any Party against High Falls including, but not limited to, High
      Falls's reasonable costs of legal expenses.

      15.   TEST BREWING

            Notwithstanding anything to the contrary in this Agreement, Boston
Beer may, at any time after notice to High Falls engage any other brewer for the
purpose of conducting test production and distribution of the Products in order
to ensure the delivery of the Product following termination of this Agreement.

      16.   COMPETING PRODUCTS

            (a) High Falls will not at anytime use the brewing formula for the
      Products which Boston Beer has supplied to High Falls or any yeast
      supplied to High Falls by Boston Beer to produce a malt beverage product
      for itself (or any of its affiliates) or on behalf of any unaffiliated
      person.

            (b) Boston Beer acknowledges that High Falls is currently in the
      business of brewing craft and specialty malt beverage products, both for
      itself and on behalf of other unaffiliated persons, that are similar to
      and compete with the Products, and Boston Beer agrees that nothing in this
      Agreement shall prevent High Falls from continuing or expanding its craft
      and specialty business or its contract brewing business, provided that
      High Falls shall not intentionally copy the brewing formula for the
      Products or use any yeast supplied to High Falls by Boston Beer to produce
      craft and specialty products for itself, any of its affiliates, or for any
      third parties. Further, High Falls shall use its best efforts to ensure
      that any production, whether for itself, its affiliates, or other
      unaffiliated persons, shall not diminish in any material respect the
      quality or frequency of the brewing, packaging,

[*] Indicates that information has been omitted and filed separately with the
Securities and Exchange Commission pursuant to a request for confidential
treatment.
<PAGE>

Boston Beer Agreement
Page 27

      shipping or other levels of service provided by High Falls to Boston Beer
      prior to the Effective Date.

      17.   RIGHTS OF OFFSET

            The parties acknowledge and agree that, to the extent a Party is at
any time owed money by the other Party, such Party may set off such amount
against any monies owed by such Party from time to time to such other Party,
said set-off to be accomplished by written notice to such other Party effective
upon being sent.

      18.   NOTICES

            All notices required herein shall be given by registered airmail,
return receipt requested, or by overnight courier service, in both cases with a
copy also sent by telecopier, to the following addresses (unless change thereof
has previously been given to the Party giving the notice) and shall be deemed
effective when received:

            If to Boston Beer:      Jeffrey D. White, COO, and
                                    Martin F. Roper, President and CEO
                                    Boston Beer Corporation
                                    75 Arlington Street
                                    Boston, MA 02116
                                    Telecopier: (617) 368-5553

            with a copy to:         Frederick H. Grein, Jr., Esq.
                                    Hutchins, Wheeler & Dittmar
                                    101 Federal Street
                                    Boston, Massachusetts 02110
                                    Telecopier: (617) 951-1295

            If to High Falls:       Samuel T. Hubbard, Jr., President and CEO
                                    High Falls Brewing Company, LLC
                                    445 St. Paul Street
                                    Rochester, NY 14605
                                    Telecopier: (585) 235-1964

            with a copy to:         Paul J. Yesawich, III, Esq.
                                    Harris Beach LLP
                                    99 Garnsey Road

[*] Indicates that information has been omitted and filed separately with the
Securities and Exchange Commission pursuant to a request for confidential
treatment.
<PAGE>

Boston Beer Agreement
Page 28

                                    Pittsford, New York  14534
                                    Telecopier: (585) 419-8801

      19.   SUCCESSORS AND ASSIGNS

            This Agreement shall be binding upon and inure to the benefit of the
successors and assigns of the Parties, but shall not be assigned by any Party,
whether by merger, consolidation, reorganization, operation of law or otherwise,
without the prior written consent of the other Party, which consent will not be
unreasonably withheld. Notwithstanding the foregoing, Boston Beer may assign
this Agreement without the consent of High Falls to its successor corporation or
other successor entity in the event of any reorganization, public offering or
change in the form of entity of Boston Beer, provided that *. No failure of a
Party to consent to a proposed assignment of this Agreement by the other Party
shall be deemed unreasonable if such Party believes in good faith that the
proposed assignee is not capable of performing the financial or production
obligations of the Party proposing to assign this Agreement. Permitted
assignment of this Agreement shall relieve the assigning Party of its financial
obligations hereunder, including its indemnification obligations hereunder.

      20.   GOVERNING LAW

            This Agreement shall be interpreted and construed in accordance with
the laws of the State of New York.

      21.   DISPUTE RESOLUTION

            Any disputes arising out of, or relating to the terms of, this
Agreement shall be resolved by arbitration pursuant to the Commercial
Arbitration Rules of the American Arbitration Association. Any arbitration shall
take place in New York City, New York and shall be the Parties' sole and
exclusive remedy and forum for the resolution of any such disputes.

      22.   EXECUTION IN COUNTERPARTS

[*] Indicates that information has been omitted and filed separately with the
Securities and Exchange Commission pursuant to a request for confidential
treatment.

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Boston Beer Agreement
Page 29

            This Agreement may be executed in one or more counterparts each of
which shall be deemed to be an original but all of which together shall
constitute one and the same document.

      23.   AMENDMENTS

            No amendment, change or modification of any of the terms, provisions
or conditions of this Agreement shall be effective unless made in writing and
signed or initialed on behalf of the Parties hereto by their duly authorized
representatives.

      24.   NO THIRD PARTY BENEFICIARIES

            High Falls and Boston Beer agree that this Agreement is solely for
their benefit and it does not nor is it intended to create any rights in favor
of, or obligations owing to, any person not a Party to this Agreement.

      25.   MERGER; SEPARABILITY

            This Agreement terminates and supersedes all prior formal or
informal understandings between the Parties with respect to the subject matter
contained herein. Should any provision or provisions of this Agreement be deemed
ineffective or void for any reason whatsoever, such provision or provisions
shall be deemed separable and shall not effect the validity of any other
provision.

      26.   LIMITATION PERIOD ON CLAIMS

      All claims hereunder must be brought no later than * after such claims
arose or the Party having such claim shall be deemed to have waived and forever
released it; provided that for this purpose, a claim will be deemed to have
arisen at the time the Party asserting the claim first became aware of it.

      IN WITNESS WHEREOF, the parties hereto enter into this Second Amended and
Restated Agreement this ___ day of April, 2002.

[*] Indicates that information has been omitted and filed separately with the
Securities and Exchange Commission pursuant to a request for confidential
treatment.
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Boston Beer Agreement
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Witness:                      BOSTON BEER CORPORATION

                              By:
--------------------------        -----------------------------------------
                                  Martin F. Roper, President and
                                  Chief Executive Officer

Witness:                      HIGH FALLS BREWING COMPANY, LLC.

                              By:
--------------------------        -----------------------------------------
                                  Samuel T. Hubbard, Jr., Chairman and
                                  Chief Executive Officer

[*] Indicates that information has been omitted and filed separately with the
Securities and Exchange Commission pursuant to a request for confidential
treatment.

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