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                                                                   Exhibit 10.11

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

                                LICENSE AGREEMENT

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

                                  INTRODUCTION

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

            (f) price reductions imposed by government authorities.

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

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

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

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

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

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

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

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

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

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

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

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

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

      1.29 "Territory" shall mean the entire world.

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

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

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

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

2. LICENSE GRANTS; TRADEMARK ASSIGNMENT.

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

      2.2 Trademark Assignment.

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

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

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

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

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

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

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

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

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

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

      3.1 Completion of Technology Transfer and NDA/IND Transfer.

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

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

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

      3.2 Supply of Existing Product.

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

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

4. FDA; SAFETY; COMPLAINTS.

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

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

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

5. PRODUCT DEVELOPMENT AND COMMERCIALIZATION.

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

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

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Zileuton is commercially launched by CTI.

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

6. FINANCIAL PROVISIONS.

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

      6.2 Milestone Payment. CTI shall make a milestone payment of [**] United
States Dollars (US$[**]) to Abbott within thirty (30) days after CTI obtains NDA
approval for the Product in the United States.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

7. REPRESENTATIONS AND WARRANTIES OF ABBOTT.

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

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

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

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

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

      7.6 Abbott hereby warrants to CTI that:

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

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

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

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

8. REPRESENTATIONS AND WARRANTIES OF CTI.

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

9. CONFIDENTIALITY AND NON-DISCLOSURE.

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

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

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

            (ii)  for audit purposes; or

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

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

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

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

10. PATENT PROSECUTION; INFRINGEMENT.

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

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

      10.3 Third Party Infringement.

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

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

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

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

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

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

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

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

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

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

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

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

                                       14
<PAGE>

11. INDEMNIFICATION.

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

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

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

                                       15
<PAGE>
12. TERMINATION.

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

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

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

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

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

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

13. MISCELLANEOUS.

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

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

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

                              with a copy to:

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

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

                              with a copy to:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

                                       20
<PAGE>
                                   SCHEDULE 1

                                    (Patents)

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

                                       21
<PAGE>
                                   SCHEDULE 2

                               Technology Transfer

                                    [**]

                                       22
<PAGE>
                                    EXHIBIT A

                        (Alternative Dispute Resolution)

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

                                       26
<PAGE>
                                    EXHIBIT B

                              Trademark Assignment

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

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

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

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

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

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

                                                ABBOTT LABORATORIES

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

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

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

                                       27
<PAGE>
                                    Exhibit 1

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

                                       28<PAGE>

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

                                                                   Exhibit 10.12

                                LICENSE AGREEMENT

         This Agreement is made and entered into as of the 15th day of November,
2002, by and between the UNIVERSITY OF PITTSBURGH - OF THE COMMONWEALTH SYSTEM
OF HIGHER EDUCATION, a non-profit corporation, organized and existing under the
laws of the Commonwealth of Pennsylvania, having its principal office at 4200
Fifth Avenue, Pittsburgh, Pennsylvania 15260 (UNIVERSITY), and CRITICAL
THERAPEUTICS, INC. (CTI), 675 Massachusetts Avenue, 14th Floor, Cambridge,
Massachusetts 02139 (LICENSEE).

         WHEREAS, UNIVERSITY is the owner or joint owner with North Shore Long
Island Jewish Research Institute of certain PATENT RIGHTS (as defined below),
and the UNIVERSITY has the right to grant licenses under such PATENT RIGHTS;

         WHEREAS, UNIVERSITY desires to have the PATENT RIGHTS utilized in the
public interest;

         WHEREAS, LICENSEE has represented to UNIVERSITY, to induce UNIVERSITY
to enter into this Agreement, that LICENSEE is experienced in the development,
production, manufacture, marketing and sale of products and/or the use of
similar products to the LICENSED PRODUCTS and that LICENSEE shall commit itself
to a thorough, vigorous and diligent program of exploiting the PATENT RIGHTS so
that public utilization results therefrom; and

         WHEREAS, LICENSEE desires to obtain a license under the PATENT RIGHTS
upon the terms and conditions hereinafter set forth.

<PAGE>

         NOW, THEREFORE, in consideration of the premises and the mutual
covenants contained herein, the parties hereto, intending to be legally bound,
agree as follows:

                             ARTICLE 1 - DEFINITIONS

         For purposes of this Agreement, the following words and phrases shall
have the following meanings:

         1.1      AFFILIATE shall mean, with respect to UNIVERSITY, any clinical
or research entity in Pittsburgh which is operated or managed as a facility
under the UPMC Health System, whether or not owned by UNIVERSITY.

         1.2      LICENSEE shall mean CTI and all entities at least fifty
percent (50%) owned or controlled by CTI.

         1.3      LICENSED PRODUCTS shall mean any product or part thereof which
is:

                  (a)      Covered in whole or in part by an issued, unexpired
                           or pending claim contained in the PATENT RIGHTS in
                           the country in which any such product or part thereof
                           is made, used, imported, offered for sale or sold or
                           in which any such process is used, imported, offered
                           for sale or sold;

                  (b)      Manufactured by using a process which is covered in
                           whole or in part by an issued, unexpired claim or a
                           pending claim contained in the PATENT RIGHTS in the
                           country in which any such process is used.

         1.4      NET SALES shall mean LICENSEE's and any sublicensee's invoice
price for sales of products included in LICENSED PRODUCTS and produced hereunder
less the sum of the following:

                  (a)      Actual cost of freight charges or freight absorption,
                           separately stated in such invoice;

                  (b)      Actual trade, quantity or cash discounts allowed, if
                           any;

                                       2
<PAGE>

                  (c)      Sales taxes, tariff duties and/or use taxes
                           separately stated on each invoice; and,

                  (d)      Actual amounts repaid and credited by reason of
                           rejection or return.

         1.5      PATENT RIGHTS shall mean the UNIVERSITY intellectual property,
including any joint interests with third parties, and intellectual property of
North Shore Long Island Jewish Research Institute that the UNIVERSITY is
entitled to license by virtue of an Inter-Institutional Agreement dated July 1,
2002, described below:

                  (a)      The United States and foreign patents, patent
                           applications and invention disclosures listed in
                           Exhibit A;

                  (b)      United States and foreign patents issued from the
                           applications listed in Exhibit A and from
                           divisionals, continuations of these applications, and
                           reissues and reexaminations of these patents;

                  (c)      Claims of U.S. and foreign patent applications filed
                           on invention disclosures listed on Exhibit A and
                           continuation-in-part applications, and of the
                           resulting patents, which are directed to subject
                           matter specifically described in the U.S. and foreign
                           applications listed in Exhibit A;

                  (d)      Claims of all foreign patent applications, and of the
                           resulting patents, which are directed to subject
                           matter specifically described in the United States
                           patents and/or patent applications described in (a),
                           (b) or (c) above; and

                  (e)      Future patent applications, and patents resulting
                           therefrom, in the U.S. and foreign countries,
                           claiming inventions described in the Invention
                           Disclosures listed on Exhibit A.

                                       3
<PAGE>

                               ARTICLE 2 - GRANT

         2.1      UNIVERSITY hereby grants to LICENSEE, to the extent it may
lawfully do so, the right and worldwide exclusive license to make, have made,
use, import, offer for sale and sell the LICENSED PRODUCTS and to practice under
the PATENT RIGHTS to the end of the term for which the PATENT RIGHTS are
granted, unless this Agreement is terminated sooner as provided herein. The
license granted hereby is subject to the rights of the United States government,
if any, as set forth in 35 U.S.C. Section 200, et seq.

         2.2      UNIVERSITY reserves the royalty-free, nonexclusive right to
practice under the PATENT RIGHTS and to use the LICENSED PRODUCTS for its own
noncommercial education and research purposes.

         2.3      LICENSEE shall have the right to enter into sublicensing
arrangements for the rights, privileges and licenses granted hereunder upon
prior written notice to University, except that sublicensees shall not have
rights to sublicense. Rights of any sublicensee shall terminate upon termination
of this Agreement.

         2.4      LICENSEE agrees that any sublicense granted by it shall
provide that the obligations to UNIVERSITY of Articles 2, 7, 8, 9, 10, 11 and 14
of this Agreement shall be binding upon the sublicensee as if it were party to
this Agreement.

         2.5      LICENSEE agrees to forward to UNIVERSITY a copy of any and all
sublicense agreements promptly upon execution thereof.

         2.6      The license granted hereunder shall not be construed to confer
any rights upon LICENSEE by implication, estoppel or otherwise as to any
technology not specifically set forth in Exhibit A hereof.

                                       4
<PAGE>

                            ARTICLE 3 - DUE DILIGENCE

         3.1      LICENSEE shall use its best efforts, consistent with standard
commercial practices, to bring the LICENSED PRODUCTS to market through a
thorough, vigorous and diligent program for exploitation of the PATENT RIGHTS
and to continue active, diligent marketing efforts for the LICENSED PRODUCTS
throughout the pendency of this Agreement.

         3.2      In addition, LICENSEE shall adhere to each of the following
milestones:

                  (a)      [**] no later than [**];

                  (b)      [**] no later than [**];

                  (c)      [**], or equivalent [**] no later than [**];

                  (d)      [**], or equivalent [**] no later than [**]; and

                  (e)      [**] no later than [**].

         3.3      LICENSEE's failure to perform in accordance with Section 3.1
or to fulfill on a timely basis any one of the milestones set forth in Section
3.2 hereof shall be grounds for UNIVERSITY to terminate this Agreement
(following the procedures of Section 11), and upon termination all rights and
interest to the LICENSED PRODUCT and PATENT RIGHTS shall revert to UNIVERSITY.

              ARTICLE 4 - ROYALTIES AND OTHER LICENSE CONSIDERATION

         4.1      In consideration of the rights, privileges and license granted
by UNIVERSITY hereunder, LICENSEE shall pay royalties and other monetary
consideration as follows:

                  (a)      Initial license fee, nonrefundable and noncreditable
                           against royalties, of $[**] due immediately upon
                           execution of this Agreement;

                  (b)      Royalties in an amount equal to [**] percent ([**]%)
                           of NET SALES of the LICENSED PRODUCTS per calendar
                           quarter;

                                       5
<PAGE>

                  (c)      Annual maintenance fee of $[**] beginning in calendar
                           year 2003 until first commercial sale of LICENSED
                           PRODUCTS; and

                  (d)      Minimum royalty in the amount of $[**] per calendar
                           year starting in the year of first commercial sale of
                           LICENSED PRODUCTS, if the actual royalty computed in
                           accordance with Section 4.1 (b) above falls below
                           $[**]. This minimum royalty, if due, shall be in lieu
                           of the computed royalty under Section 4.1 (b).

         4.2      Royalty payments, pursuant to Section 4.1 (b) above, shall be
paid to UNIVERSITY in United States dollars and directed to the address set
forth in Section 12 hereof within sixty (60) days after each March 31, June 30,
September 30 and December 31. The annual maintenance fee pursuant to Section 4.1
(c) and the minimum royalty, pursuant to Section 4.1 (d) above, shall be paid to
UNIVERSITY in like manner within sixty (60) days of the end of the calendar year
in which the payment is due.

         4.3      Payments pursuant to this Agreement which are overdue shall
bear interest calculated from the due date until payment is received at the rate
of five percent (5%) per annum.

         4.4      LICENSEE shall sell LICENSED PRODUCTS to UNIVERSITY and its
AFFILIATES upon request at such price(s) and on such terms and conditions as
such LICENSED PRODUCTS are made available to LICENSEE's most favored customer.

                              ARTICLE 5 - REPORTS

         5.1      Starting with the calendar quarter in which the first
commercial sale occurs, within sixty (60) days after each March 31, June 30,
September 30 and December 31 of each year during the term of this Agreement,
LICENSEE shall deliver to UNIVERSITY true, accurate and detailed reports of the
following information in a form reasonably acceptable to

UNIVERSITY:

                                       6
<PAGE>

                  (a)      Number of LICENSED PRODUCTS manufactured and sold by
                           LICENSEE and all sublicensees;

                  (b)      Total billings for all such LICENSED PRODUCTS;

                  (c)      Accounting for all LICENSED PRODUCTS sold by LICENSEE
                           and all sublicensees;

                  (d)      Deductions set forth in Section 1.4;

                  (e)      Total royalties due; and

                  (f)      Name and addresses of sublicensees.

         5.2      If no royalties shall be due hereunder in any calendar quarter
after the first commercial sale has occurred, LICENSEE shall so advise
UNIVERSITY in writing within sixty (60) days after the end of any calendar
quarter for which no royalties are due.

         5.3      LICENSEE shall keep full, true and accurate books of account,
in accordance with generally accepted accounting principles, containing all
information that may be necessary for the purpose of showing the amounts payable
to UNIVERSITY hereunder. Such books of account shall be kept at LICENSEE's
principal place of business. Such books and the supporting data related thereto
shall be open at all reasonable times for three (3) years following the end of
the calendar year to which they pertain to the inspection of UNIVERSITY or its
agents for the purpose of verifying LICENSEE's royalty statement or compliance
in other respects with this Agreement; providing, however, that such inspection
shall not occur more than once per year. The fees and expenses of UNIVERSITY's
representatives shall be borne by UNIVERSITY; however, if an error of more than
five percent (5%) of the total payments due or owing for any year is discovered,
then LICENSEE shall bear the fees and expenses of UNIVERSITY's representatives.

                                       7
<PAGE>

                         ARTICLE 6 - PATENT PROSECUTION

         6.1      UNIVERSITY has or shall apply for, seek prompt issuance of and
maintain during the term of this Agreement the PATENT RIGHTS in the United
States and in such foreign countries as may be designated by LICENSEE in a
written notice to UNIVERSITY within a reasonable time in advance of the required
foreign filing dates. LICENSEE shall have the opportunity to advise and
cooperate with UNIVERSITY in the prosecution, filing and maintenance of such
patents.

         6.2      All fees and costs, including attorneys' fees, relating to the
filing, prosecution and maintenance of the PATENT RIGHTS shall be the
responsibility of LICENSEE, whether incurred prior to or after the date of this
Agreement. Such fees and costs incurred by UNIVERSITY prior to the date hereof
will be payable by LICENSEE to UNIVERSITY within thirty (30) business days after
the execution of this Agreement by LICENSEE. Fees and costs incurred after the
date of this Agreement shall be paid by LICENSEE. Payments pursuant to this
Section 6.2 are not creditable against royalties.

         6.3      LICENSEE may request that UNIVERSITY transfer prosecution of
the PATENT RIGHTS to a law firm preferred by LICENSEE. Provided such law firm is
reasonably acceptable to UNIVERSITY, UNIVERSITY shall arrange for the transfer
of the prosecution responsibility to such law firm.

                        ARTICLE 7 - INFRINGEMENT ACTIONS

         7.1      LICENSEE shall inform UNIVERSITY promptly in writing of any
alleged infringement of the PATENT RIGHTS by a third party of which LICENSEE
becomes aware and of any available evidence thereof in LICENSEE's possession.

         7.2      During the term of this Agreement, LICENSEE shall have the
right, but shall not be obligated, to prosecute at its own expense all
infringements of the PATENT RIGHTS if

                                       8
<PAGE>

LICENSEE has notified UNIVERSITY in writing of its intent to prosecute;
provided, however, that such right to bring such an infringement action shall
remain in effect only for so long as the license granted herein remains
exclusive. In furtherance of such right, UNIVERSITY hereby agrees that LICENSEE
may include UNIVERSITY as a party plaintiff in any such suit, without expense to
UNIVERSITY. The total cost of any such infringement action commenced or defended
solely by LICENSEE shall be borne by LICENSEE and UNIVERSITY shall receive a
percentage of any recovery or damages for past infringement derived therefrom
which is equal to the percentage royalty due UNIVERSITY under Article 4.
LICENSEE shall indemnify UNIVERSITY against any order for costs that may be made
against UNIVERSITY in such proceedings.

         7.3      If within six (6) months after having been notified of any
alleged infringement, LICENSEE shall have been unsuccessful in persuading the
alleged infringer to desist and shall not have brought and shall not be
diligently prosecuting an infringement action, or if LICENSEE shall notify
UNIVERSITY at any time prior thereto of its intention not to bring suit against
any alleged infringer, then, and in those events only, UNIVERSITY shall have the
right, but shall not be obligated, to prosecute at its own expense any
infringement of the PATENT RIGHTS, and UNIVERSITY may, for such purposes, use
the name of LICENSEE as party plaintiff. UNIVERSITY shall bear all costs and
expenses of any such suit. In any settlement or other conclusion, by litigation
or otherwise, UNIVERSITY shall keep any recovery or damages for past
infringement derived therefrom for litigations it solely undertakes.

         7.4      In the event that a declaratory judgment action alleging
invalidity or infringement of any of the PATENT RIGHTS shall be brought against
UNIVERSITY, LICENSEE, at its

                                       9
<PAGE>

option, shall have the right, within thirty (30) days after commencement of such
action, to intervene and take over the sole defense of the action at its own
expense.

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

          ARTICLE 8 - INDEMNIFICATION/INSURANCE/LIMITATION OF LIABILITY

         8.1      LICENSEE shall at all times during the term of this Agreement
and thereafter indemnify, defend and hold UNIVERSITY and North Shore Long Island
Jewish Research Institute, their trustees, officers, employees and affiliates
harmless against all claims and expenses, including legal expenses and
reasonable attorneys' fees, arising out of the death of or injury to any person
or persons or out of any damage to property or the environment, and against any
other claim, proceeding, demand, expense and liability of any kind whatsoever
resulting from the production, manufacture, sale, use, lease, consumption or
advertisement by LICENSEE of the LICENSED PRODUCTS, or arising from any
obligation of LICENSEE hereunder.

         8.2      LICENSEE shall obtain and carry in full force and effect
liability insurance which shall protect LICENSEE and UNIVERSITY in regard to
events covered by Section 8.1 above, as provided below:

         COVERAGE LIMITS

         a.       Workers' Compensation - Statutory

         b.       Employer's Liability - $100,000

                                       10
<PAGE>

         c.       Commercial General Liability, including but not limited to,
         Contractual, Fire, Legal and Personal Injury - $1,000,000 Combined
         Single Limits for Bodily Injury and Property Damage and

         d.       Umbrella Liability including Products Liability to be obtained
         by commencement by LICENSEE of first human clinical trial of a LICENSED
         PRODUCT or the first commercial sale of a LICENSED PRODUCT, whichever
         occurs first - $3,000,000.

         The University of Pittsburgh is to be named as an additional insured
with respect to insurance policies identified in Section 8.2(c) and 8.2(d)
above.

         Certificates of insurance evidencing the coverage required above shall
be filed with the University's Office of Risk Management, 1817 Cathedral of
Learning, Pittsburgh, PA 15260, no later than fifteen (15) days after execution
of this Agreement and annually thereafter. Such certificates shall provide that
the insurer will give the University not less than thirty (30) days advance
written Notice of any material changes in or cancellation of coverage.

         8.3      EXCEPT AS OTHERWISE EXPRESSLY SET FORTH IN THIS AGREEMENT,
UNIVERSITY MAKES NO REPRESENTATIONS AND EXTENDS NO WARRANTIES OF ANY KIND,
EITHER EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO WARRANTIES OF
MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, AND VALIDITY OF PATENT RIGHTS
CLAIMS, ISSUED OR PENDING. NOTHING IN THIS AGREEMENT SHALL BE CONSTRUED AS A
REPRESENTATION OR WARRANTY GIVEN BY UNIVERSITY THAT THE PRACTICE BY LICENSEE OF
THE LICENSE GRANTED HEREUNDER SHALL NOT INFRINGE THE PATENT RIGHTS OF ANY THIRD
PARTY.

                                       11
<PAGE>

         8.4      UNIVERSITY does warrant, nevertheless, that it owns all right,
title and interest to the PATENT RIGHTS licensed hereunder, or is authorized to
license rights owned by North Shore Long Island Jewish Research Institute under
an Inter-institutional Agreement (IIA), dated July 1, 2002, with North Shore
Long Island Jewish Research Institute, and further warrants that it has the
legal capacity to enter this Agreement.

                            ARTICLE 9 - ASSIGNMENT

         9.1      This Agreement is not assignable, except as stated, without
the prior written consent of UNIVERSITY, not to be unreasonably or untimely
withheld, and any attempt to do so shall be null and void; providing, however,
LICENSEE may assign this Agreement without the written consent of UNIVERSITY in
connection with a sale of all of LICENSEE'S assets pertaining to the LICENSED
PRODUCTS, provided that the assignee shall agree in writing to be bound by all
of the terms of this Agreement.

                           ARTICLE 10 - ARBITRATION

         10.1     Except as to issues relating to the validity, enforceability
or final determination of infringement of any patent contained in the PATENT
RIGHTS licensed hereunder, any and all claims, disputes or controversies arising
under, out of, or in connection with this License Agreement, which have not been
resolved in good faith negotiations between the parties, shall be resolved by a
board of three (3) arbitrators in Pittsburgh, Pennsylvania, in accordance with
the rules, then in effect, of the American Arbitration Association. Such
independent board shall be composed of three (3) panelists of sufficient
education, scientific experience and national reputation to address such issues.
The board shall be composed of one arbitrator selected by UNIVERSITY, one
selected by LICENSEE and one selected by LICENSEE and UNIVERSITY. If LICENSEE
and UNIVERSITY cannot agree upon the third arbitrator within fourteen (14) days
after the notice of arbitration, the third arbitrator shall be selected by the
American

                                       12
<PAGE>

Arbitration Association in accordance with its rules. The decision of such panel
shall be final and binding upon the parties and enforceable in any court of
competent jurisdiction.

                           ARTICLE 11 - TERMINATION

         11.1     UNIVERSITY shall have the right to terminate this Agreement
if:

                  (a)      LICENSEE shall default in the performance of any of
                           its material obligations herein contained and such
                           default has not been cured within sixty (60) days
                           after receiving written notice thereof from
                           UNIVERSITY; or

                  (b)      LICENSEE shall cease to carry out its business,
                           become bankrupt or insolvent, apply for or consent to
                           the appointment of a trustee, receiver or liquidator
                           of its assets or seek relief under any law for the
                           aid of debtors.

         11.2     LICENSEE may terminate this Agreement upon three (3) months
prior written notice to UNIVERSITY and upon payment of all amounts due
UNIVERSITY through the effective date of termination.

         11.3     Upon termination of this Agreement, neither party shall be
released from any obligation that matured prior to the effective date of such
termination. LICENSEE and any sublicensee may, however, after the effective date
of such termination, sell all products under the LICENSED PRODUCTS which
LICENSEE produced prior to the effective date of such termination, provided that
LICENSEE shall pay to UNIVERSITY the royalties thereon as required by Article 4
hereof and submit the reports required by Article 5 hereof.

                             ARTICLE 12 - NOTICES

         12.1     Any notice or communication pursuant to this Agreement shall
be sufficiently made or given if sent by certified or registered mail, postage
prepaid, or by overnight courier,

                                       13
<PAGE>

with proof of delivery by receipt, addressed to the address below or as either
party shall designate by written notice to the other party.

         In the case of UNIVERSITY:

                  Director
                  Office of Technology Management
                  University of Pittsburgh
                  200 Gardner Steel Conference Center
                  Thackeray & O'Hara Streets
                  Pittsburgh, PA 15260

         In the case of LICENSEE:

                  Critical Therapeutics, Inc.
                  675 Massachusetts Avenue
                  14th Floor
                  Cambridge, MA 02139
                  Attention: President

                      ARTICLE 13 - AMENDMENT, MODIFICATION

         13.1     This Agreement may not be amended or modified except by the
execution of a written instrument signed by the parties hereto.

                          ARTICLE 14 - MISCELLANEOUS

         14.1     This Agreement shall be construed and interpreted in
accordance with the laws of the Commonwealth of Pennsylvania. Except for
arbitrations, as set forth in Article 10, the forum for any action relating to
this Agreement shall be the Courts of Allegheny County, Pennsylvania, or, if in
a federal proceeding, the United States District Court for the Western District
of Pennsylvania.

         14.2     The parties acknowledge that this Agreement sets forth the
entire understanding and intentions of the parties hereto as to the subject
matter hereof and supersedes all previous understandings between the parties,
written or oral, regarding such subject matter.

                                       14
<PAGE>

         14.3     Nothing contained in this Agreement shall be construed as
conferring upon either party any right to use in advertising, publicity or other
promotional activities any name, trade name, trademark, or other designation of
the other party, including any contraction, abbreviation, or simulation of any
of the foregoing. Without the express written approval of the other party,
neither party shall use any designation of the other party in any promotional
activity associated with this Agreement or the LICENSED PRODUCTS. Neither party
shall issue any press release or make any public statement in regard to this
Agreement without the prior written approval of the other party.

         14.4     If one or more of the provisions of this Agreement shall be
held invalid, illegal or unenforceable, the remaining provisions shall not in
any way be affected or impaired thereby. In the event any provision is held
illegal or unenforceable, the parties shall use reasonable efforts to substitute
a valid, legal and enforceable provision which, insofar as is practical,
implements purposes of the provision held invalid, illegal or unenforceable.

         14.5     Failure at any time to require performance of any of the
provisions herein shall not waive or diminish a party's right thereafter to
demand compliance therewith or with any other provision. Waiver of any default
shall not waive any other default. A party shall not be deemed to have waived
any rights hereunder unless such waiver is in writing and signed by a duly
authorized officer of the party making such waiver.

         14.6     LICENSEE acknowledges that UNIVERSITY is free to publish the
results of the research activities of its faculty, staff and students, even
though such publication may involve the PATENT RIGHTS or LICENSED PRODUCTS.
UNIVERSITY agrees to submit to LICENSEE any proposed publication or presentation
regarding the subject matter specifically described in the PATENT RIGHTS for
prior review by LICENSEE at least sixty (60) days before its

                                       15
<PAGE>

submittal for publication or its presentation. LICENSEE may, within thirty (30)
days after receipt of such proposed publication, request that such proposed
publication be delayed not more than ninety (90) days in order to allow for
protection of intellectual property rights.

         14.7     This Agreement will be executed in three originals, all of
which together will comprise only one agreement.

         IN WITNESS WHEREOF, the parties have set their hands and seals as of
the dates indicated.

                                             UNIVERSITY OF PITTSBURGH - OF THE
                                             COMMONWEALTH SYSTEM OF HIGHER
                                             EDUCATION

Date: 11/18/02                               By /s/ Jerome Cochran
                                                -------------------------------
                                                Jerome Cochran
                                                Executive Vice Chancellor

                                             CRITICAL THERAPEUTICS, INC.

Date: 11/18/02                               By /s/ Paul D. Rubin
                                                -------------------------------
                                                Paul D. Rubin
                                                President

                                       16
<PAGE>

                                    EXHIBIT A

U.S. Provisional Application No.: [**]

Title: [**]

Corresponding Patent Cooperation Treaty (PCT) application

Application No.: [**]

Filing Date: [**]

Title: [**]

University Reference No. [**]

Invention Disclosure:

Title: [**]

HBS&R Docket No.: [**]

Invention Disclosure:

Title: [**]

University Reference No. [**]

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