Document:

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                                                                    EXHIBIT 10.3

                         SUBLEASE TERMINATION AGREEMENT

       This Sublease Termination Agreement (the "AGREEMENT") is made this 21st
day of May, 2004, by and between Elixir Pharmaceuticals, Inc.,
successor-in-interest to Centagenetix, Inc. by merger ("SUBLESSOR"), and
Critical Therapeutics, Inc. ("SUBLESSEE").

                                    RECITALS

       A.     Sublessor is the Tenant under a lease dated January 16, 2002, by
and between Centagenetix, Inc. and Massachusetts Institute of Technology
("LANDLORD"), as landlord (said Lease, as so amended, being hereinafter referred
to as the "LEASE"), with respect to premises (the "PREMISES") consisting of
approximately 19,711 rentable square feet on the first and second floors of the
building (the "BUILDING") located at 12 Emily Street, Cambridge, Massachusetts,
as more particularly described in the Lease.

       B.     Pursuant to a sublease dated as of December 16, 2002 (the
"SUBLEASE"), Sublessee subleases a portion of the Premises from Sublessor
containing approximately 4,500 rentable square feet (the "SUBLET PREMISES") in
the Building, of which approximately 1,500 square feet is shared by Sublessor
and Sublessee.

       C.     Sublessor and Sublessee desire to terminate the Sublease prior to
the normal expiration date of the term thereof and in accordance with Section 16
of the Sublease and the terms and conditions of this Agreement. All terms used
herein and not defined herein shall have the meanings ascribed to them in the
Sublease.

                                    AGREEMENT

       NOW, THEREFORE, in consideration of the foregoing recitals and conditions
and the covenants hereinafter contained, and for other consideration hereinafter
set forth, the receipt and sufficiency of which are hereby acknowledged,
Sublessor and Sublessee hereby agree as follows:

       1.     Termination Date. The Sublease shall terminate on May 31, 2004
(hereinafter referred to as the "TERMINATION DATE"), and, prior to such
Termination Date, Sublessee shall vacate the Sublet Premises and remove its
personal goods and effects therefrom and shall otherwise quit and surrender the
Sublet Premises in a neat and clean condition and in good order, condition and
repair in substantially the same condition as of January 1, 2004, reasonable
wear and tear and damage thereto excepted, all as required by the Sublease.
Notwithstanding the foregoing, Sublessee shall not remove any of the animal
facility assets located at the Sublet Premises, including animal facility
leasehold improvements, equipment, furniture or small tools and supplies, or any
other fixtures, equipment or supplies used in housing, husbandry, cage washing
and autoclaving for animals, as further described in the Animal Care Services
Agreement between Sublessor and Sublessee dated May 15, 2003 (the "ANIMAL
FACILITY ASSETS").

       Sublessee shall maintain all of the Animal Facility Assets in good
working, operational order and shall maintain the animal facility operation at
existing standards through the day following the Termination Date when all
Sublessee's right, title and interest in and to the

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Animal Facility Assets shall vest in Sublessor. Sublessee acknowledges that
Sublessor may continue usage of the Animal Facility Assets thereafter.

       2.     Termination Consideration. In addition to paying all monthly Basic
Rent and Additional Rent and any other amounts due under the Sublease through
the Termination Date, in consideration of Sublessor's agreement to terminate the
Sublease as provided in Section 1 above, Sublessee hereby agrees that:

              (i)    Sublessor shall retain the security deposit of Sixty
                     Thousand Dollars ($60,000) under the Sublease;

              (ii)   Sublessee shall transfer legal ownership and title, free
                     and clear of all liens and encumbrances, of the Animal
                     Facility Assets to Sublessor effective as of June 1, 2004,
                     pursuant to a bill of sale of even date herewith (the "BILL
                     OF SALE"); and

              (iii)  Sublessee shall remain liable for all of its obligations
                     and liabilities under the Sublease, including any
                     environmental responsibilities, to the extent such
                     obligations and liabilities relate to events or occurrences
                     on or prior to the Termination Date, except for Basic Rent
                     and Additional Rent obligations ((i), (ii) and (iii)
                     collectively, the "TERMINATION CONSIDERATION").

       Sublessee hereby acknowledges that all monies and transfers of title
required as consideration under this Section are fully earned by Sublessor on
the Termination Date and constitute consideration for Sublessor's agreement to
terminate this Sublease under the terms of this Agreement. Sublessor hereby
acknowledges that Sublessee has paid all Basic Rent and Additional Rent due
through the Termination Date.

       3.     Indemnification by Sublessor. Sublessor shall indemnify, defend
and hold harmless the Sublessee and its affiliates, and any of their respective
directors, officers, employees, subcontractors and agents from and against any
and all liabilities, obligations, penalties, claims, judgments, demands,
actions, disbursements of any kind and nature, suits, losses, damages, costs and
expenses (including, without limitation, reasonable attorney's fees) arising out
of or in connection with any property damage or personal injury (including
without limitation death) of third parties solely to the extent such property
damages or personal injuries of third parties occur after the Termination Date.

       4.     Mutual Release. Except as to such rights or claims as may be
created or otherwise preserved by this Agreement, including those preserved
under Paragraph 2(iii) of this Agreement, and except for indemnifications by
Sublessee and Sublessor set forth in the Sublease through the Termination Date,
Sublessor and Sublessee hereby each release, remise and further discharge the
other from all debts, demands, actions, causes of action, suits, accounts,
covenants, contracts, agreements, damages and all claims and liabilities arising
out of, connected with or incidental to the Sublease or the Sublet Premises to
the extent the same relate to events or occurrences prior to the Termination
Date.

                                       2
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       5.     Conditions to Effectiveness. This Agreement is expressly subject
to the occurrence of and/or strict compliance by Sublessee and Sublessor of the
following conditions precedent:

              (i)    The execution by Sublessee and Sublessor of the Agreement;

              (ii)   The payment by Sublessee to Sublessor of all monthly Basic
       Rent, Additional Rent and any other amounts due under the Sublease
       through the Termination Date;

              (iii)  The payment by or surrender of security deposit funds and
       transfer of title of the Animal Facility Assets pursuant to the Bill of
       Sale from Sublessee to Sublessor, free and clear of all liens and
       encumbrances; and

              (iv)   The surrender of the Sublet Premises by Sublessee as
       required by Paragraph 1 hereof.

              In the event that all of the foregoing have not occurred by June
1, 2004, this Agreement shall be null and void and of no force and effect, the
Sublease shall continue in full force, and Sublessee shall not be released from
any of its obligations under the Sublease and Sublessor shall provide animal
services using the Animal Facility Assets to Sublessee on an as needed basis
under reversed terms provided in the Animal Care Services Agreement dated May
15, 2003.

       6.     Successors and Assigns. This Agreement is binding upon and shall
inure to the benefit of the Sublessor and Sublessee, with its respective agents,
employees, representatives, officers, directors, divisions, subsidiaries,
affiliates, assigns, heirs, successors-in-interest and shareholders.

       7.     Attorneys' Fees. If either party commences litigation against the
other concerning any provision of this Agreement, the rights or duties of any
person in relation thereto, or otherwise for enforcement of any remedy
hereunder, the parties hereto agree to, and hereby do waive any right to a trial
by jury and, in the event of any such commencement of litigation, the prevailing
party shall be entitled to recover from the other party such costs and
reasonable attorneys' fees as may have been incurred, as well as reasonable
attorneys' fees and costs incurred in enforcing any judgment against the
non-prevailing party.

       8.     Governing Law. This Agreement shall be governed and construed
under the laws of the Commonwealth of Massachusetts.

       9.     Counterparts. This Agreement may be executed in counterparts, each
of which shall be deemed an original, but such counterparts, when taken
together, shall constitute one agreement.

       10.    Time of the Essence. Time is of the essence of this Agreement and
the provisions contained herein.

                                       3
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       11.    Further Assurances. Sublessor and Sublessee hereby agree to
execute such further documents or instruments as may be necessary or appropriate
to carry out the intention of this Agreement.

       12.    Voluntary Agreement. The parties have read this Agreement and
mutual release as contained herein, and they have freely and voluntarily entered
into this Agreement.

       13.    No Waiver. The waiver, either expressed or implied, by any party
hereto of any term and condition of this Agreement shall not constitute a
relinquishment by said party of its right to enforce the term or condition at
any later date, unless this Agreement is amended in writing to so provide for an
unconditional waiver.

       14.    Interpretation. None of the parties hereto, nor their respective
counsel, shall be deemed to be the drafter of this Agreement for the purposes of
construing the provisions hereof. The language in all parts of this Agreement
shall in all cases be construed according to its fair meaning, not strictly for
or against any of the parties hereto.

       15.    Integration Clause/Modification. This Agreement, the Bill of Sale
and the surviving sections of the Sublease, as identified by Paragraphs 2 and 3
of this Agreement, constitute the entire agreement between the parties for the
subject matter contained herein and supersedes any and all prior agreements,
whether oral or written, related to such subject matter. This Agreement may not
be altered, amended, modified or otherwise changed in any respect whatsoever,
except by a writing duly executed by all of the parties affected by such
modification or by their authorized representatives. Any modification or waiver
of any one provision shall not constitute waiver or modification of any other
provision not expressly waived or modified.

                           [SIGNATURE PAGE TO FOLLOW]

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       IN WITNESS WHEREOF, Sublessor and Sublessee have set their hands and
seals to this Sublease Termination Agreement as of the date first written above.

SUBLESSOR:                                      SUBLESSEE:

ELIXIR PHARMACEUTICALS, INC.                    CRITICAL THERAPEUTICS, INC.

By: /s/ Alan Watson                             By: /s/ Trevor Phillips
    ----------------------------                    ---------------------------
    Name: Alan Watson                               Name: Trevor Phillips
    Title: CBO                                      Title: COO

<PAGE>

                              WARRANTY BILL OF SALE

       KNOW ALL YE BY THESE PRESENTS, that the undersigned, CRITICAL
THERAPEUTICS, INC. having a mailing address of 60 Westview Street, Lexington,
Massachusetts 02421 (the "SELLER") for and in consideration of execution of, and
the consideration referenced in that certain Sublease Termination Agreement of
even date herewith by and between Seller and Buyer (the "SUBLEASE TERMINATION
AGREEMENT"), paid to it upon the execution and delivery of this Warranty Bill of
Sale by ELIXIR PHARMACEUTICALS, INC. having a mailing address of One Kendall
Square, Building 1000, Fifth Floor, Cambridge, MA 02139 (the "BUYER"), the
receipt whereof is hereby acknowledged and for other good and valuable
consideration, hereby grants, bargains, sells and delivers to the Buyer,
effective June 1, 2004 (the "Effective Date"), all of Seller's right, title and
interest in and to those certain goods and chattels of the Seller described as
Animal Facility Assets, as defined in the Sublease Termination Agreement, and
located at 12 Emily Street, Cambridge, Massachusetts (the "Facility") and more
specifically described in Schedule A attached hereto (the "PERSONAL PROPERTY"),
to have and to hold the Personal Property unto Buyer, its successors and
assigns, forever.

       The Seller warrants that, as of the date hereof and through the time of
transfer on the Effective Date, it is the sole and lawful owner of the Personal
Property; that the Personal Property is free from all liens and encumbrances;
and that it has good right to sell the same as aforesaid.

       Seller further warrants to Buyer that it will fully defend, protect,
indemnify and hold harmless the Buyer and its lawful successors and assigns from
any adverse claim to the Personal Property.

       The Personal Property is otherwise sold in "as is" condition and where
presently located and such Personal Property will be located in the Facility on
the Effective Date.

       IN WITNESS WHEREOF, the undersigned has caused this Warranty Bill of Sale
to be executed on this 21st day of May, 2004.

                                              CRITICAL THERAPEUTICS, INC.

                                              By: /s/ Trevor Phillips
                                                  ------------------------------
                                                  Trevor Phillips
                                                  Title: Chief Operating Officer

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                                                                      SCHEDULE A

8 Thoren racks
560 Mouse Cage Sets
280 Rat Cage Sets
5 Laminar Flow Hoods
3 VWR undercounter fridge/freezer
2 balances
4 steel tables
1 6ft carcass freezer
1 dump station
1 pass thru cage wash
1 autoclave
1 fluid solutions 140 gallon water purification system
1 TMS inverted microscope
1 inhalation anesthesia controller
1 Thermolyne Type 37900 culture incubator
8 plastic rolling carts
6 metal cages racks with covers
2 plastic lockers stacks (4 lockers per stack)
14 water bottle racks
2 cage wash racks
Many enrichment domes/bones

TISSUE CULTURE
1 TC hood
2 Heraeus incubators

Cabinets

All documentation and all manufacturer's or other warranties related to the
foregoing.<PAGE>
                                                                    Exhibit 10.5

                           CRITICAL THERAPEUTICS, INC.

                        INCENTIVE STOCK OPTION AGREEMENT
                     GRANTED UNDER 2004 STOCK INCENTIVE PLAN

1.       Grant of Option.

         This agreement evidences the grant by Critical Therapeutics, Inc., a
Delaware corporation (the "Company"), on ______________, 200[_] (the "Grant
Date") to [__________], an employee of the Company (the "Participant"), of an
option to purchase, in whole or in part, on the terms provided herein and in the
Company's 2004 Stock Incentive Plan (the "Plan"), a total of [______________
shares (the "Shares") of common stock, $0.001 par value per share, of the
Company ("Common Stock") at $[_______] per Share. Unless earlier terminated,
this option shall expire at 5:00 p.m., Eastern time, on [_______] (the "Final
Exercise Date").

         It is intended that the option evidenced by this agreement shall be an
incentive stock option as defined in Section 422 of the Internal Revenue Code of
1986, as amended, and any regulations promulgated thereunder (the "Code").
Except as otherwise indicated by the context, the term "Participant", as used in
this option, shall be deemed to include any person who acquires the right to
exercise this option validly under its terms.

2.       Vesting Schedule.

         This option will become exercisable ("vest") as to [25]% of the
original number of Shares on [the [first] anniversary of the Grant Date](1) and
as to an additional [2.09]% of the original number of Shares at the end of each
successive [one-month] period following [the [first] anniversary of the Grant
Date](2) until [the [fourth] anniversary of the Grant Date.](3)

         The right of exercise shall be cumulative so that to the extent the
option is not exercised in any period to the maximum extent permissible it shall
continue to be exercisable, in whole or in part, with respect to all Shares for
which it is vested until the earlier of the Final Exercise Date or the
termination of this option under Section 3 hereof or the Plan.

3.       Exercise of Option.

         (a)      Form of Exercise. Each election to exercise this option shall
be in writing, signed by the Participant, and received by the Company at its
principal office, accompanied by this agreement, and payment in full in the
manner provided in the Plan. The Participant may purchase less than the number
of shares covered hereby, provided that no partial exercise of this option may
be for any fractional share or for fewer than ten whole shares.

         (b)      Continuous Relationship with the Company Required. Except as
otherwise provided in this Section 3, this option may not be exercised unless
the Participant, at the time he or she exercises this option, is, and has been
at all times since the Grant Date, an employee or officer of, or consultant or
advisor to, the Company or any parent or subsidiary of the Company as defined in
Section 424(e) or (f) of the Code (an "Eligible Participant").

--------------------------
1. If the Participant is a new employee, the vesting schedule will relate to
the date of hire of the employee and not to the actual Grant Date. Accordingly,
replace the bracketed language with the date that is [one] year from the date
of hire.

2. If the Participant is a new employee, replace the bracketed language with
the date that is [one] year from the date of hire.

3. If the Participant is a new employee, replace the bracketed language with
the date that is [four] years from the date of hire.

<PAGE>

         (c)      Termination of Relationship with the Company. If the
Participant ceases to be an Eligible Participant for any reason, then, except as
provided in paragraphs (d) and (e) below, the right to exercise this option
shall terminate three months after such cessation (but in no event after the
Final Exercise Date), provided that this option shall be exercisable only to the
extent that the Participant was entitled to exercise this option on the date of
such cessation. Notwithstanding the foregoing, if the Participant, prior to the
Final Exercise Date, violates the non-competition or confidentiality provisions
of any employment contract, confidentiality and nondisclosure agreement or other
agreement between the Participant and the Company, the right to exercise this
option shall terminate immediately upon written notice to the Participant from
the Company describing such violation.

         (d)      Exercise Period Upon Death or Disability. If the Participant
dies or becomes disabled (within the meaning of Section 22(e)(3) of the Code)
prior to the Final Exercise Date while he or she is an Eligible Participant and
the Company has not terminated such relationship for "cause" as specified in
paragraph (e) below, this option shall be exercisable, within the period of one
year following the date of death or disability of the Participant, by the
Participant (or in the case of death by an authorized transferee), provided that
this option shall be exercisable only to the extent that this option was
exercisable by the Participant on the date of his or her death or disability,
and further provided that this option shall not be exercisable after the Final
Exercise Date.

         (e)      Discharge for Cause. If the Participant, prior to the Final
Exercise Date, is discharged by the Company for "cause" (as defined below), the
right to exercise this option shall terminate immediately upon the effective
date of such discharge. "Cause" shall mean willful misconduct by the Participant
or willful failure by the Participant to perform his or her responsibilities to
the Company (including, without limitation, breach by the Participant of any
provision of any employment, consulting, advisory, nondisclosure,
non-competition or other similar agreement between the Participant and the
Company), as determined by the Company, which determination shall be conclusive.
The Participant shall be considered to have been discharged for "Cause" if the
Company determines, within 30 days after the Participant's resignation, that
discharge for cause was warranted.

4.       Tax Matters.

         (a)      Withholding. No Shares will be issued pursuant to the exercise
of this option unless and until the Participant pays to the Company, or makes
provision satisfactory to the Company for payment of, any federal, state or
local withholding taxes required by law to be withheld in respect of this
option.

         (b)      Disqualifying Disposition. If the Participant disposes of
Shares acquired upon exercise of this option within two years from the Grant
Date or one year after such Shares were acquired pursuant to exercise of this
option, the Participant shall notify the Company in writing of such disposition.

                                      -2-
<PAGE>
5.       Nontransferability of Option.

         This option may not be sold, assigned, transferred, pledged or
otherwise encumbered by the Participant, either voluntarily or by operation of
law, except by will or the laws of descent and distribution, and, during the
lifetime of the Participant, this option shall be exercisable only by the
Participant.

6.       Provisions of the Plan.

         This option is subject to the provisions of the Plan, a copy of which
is furnished to the Participant with this option.

         IN WITNESS WHEREOF, the Company has caused this option to be executed
under its corporate seal by its duly authorized officer. This option shall take
effect as a sealed instrument.

                                            CRITICAL THERAPEUTICS, INC.

Dated: _________                            By:     ____________________________

                                                    Name:    ___________________
                                                    Title:   ___________________

                                      -3-

<PAGE>

                            PARTICIPANT'S ACCEPTANCE

         The undersigned hereby accepts the foregoing option and agrees to the
terms and conditions thereof. The undersigned hereby acknowledges receipt of a
copy of the Company's 2004 Stock Incentive Plan.(1)

                                      PARTICIPANT:

                                      ________________________________

                                      Address:     ___________________

                                                   ___________________

------------------
1      If the Participant resides in a community property state, it is desirable
to have the Participant's spouse also accept the option by signature here. The
following are community property states: Arizona, California, Idaho, Louisiana,
Nevada, New Mexico, Texas, and Washington. Although Wisconsin is not formally a
community property state, it has laws governing the division of marital property
similar to community property states and it may be desirable to have a Wisconsin
Participant's spouse also accept the option.

                                      -4-

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