Document:

EXHIBIT 10.1
                                                                    ------------

                                 PRESSTEK, INC.

                      2003 STOCK OPTION AND INCENTIVE PLAN

1.   PURPOSE AND ELIGIBILITY

     The purpose of this 2003 STOCK OPTION AND INCENTIVE PLAN (the "PLAN") of
PRESSTEK, INC. (the "COMPANY") is to provide stock options, stock issuances and
other equity interests in the Company (each, an "AWARD") to employees, officers,
directors (including directors who are not an employee or officer of the
Company, such directors being referred to herein as "NON-EMPLOYEE DIRECTORS"),
consultants and advisors of the Company and its Subsidiaries, all of whom are
eligible to receive Awards under the Plan. Any person to whom an Award has been
granted under the Plan is called a "PARTICIPANT". Additional definitions are
contained in Section 12(a).

2.   ADMINISTRATION

     a. ADMINISTRATION BY BOARD OF DIRECTORS.  The Plan will be administered by
the Board of Directors of the Company (the "BOARD"). The Board, in its sole
discretion, shall have the authority to grant and amend Awards, to adopt, amend
and repeal rules relating to the Plan and to interpret and correct the
provisions of the Plan and any Award. The Board shall have authority, subject to
the express limitations of the Plan, to construe and determine the respective
option agreement, Awards and the Plan, to prescribe, amend and rescind rules and
regulations relating to the Plan and any Awards, to determine the terms and
provisions of the respective option agreements and Awards, which need not be
identical, to make all other determinations in the judgment of the Board of
Directors necessary or desirable for the administration and interpretation of
the Plan. The Board may correct any defect or supply any omission or reconcile
any inconsistency in the Plan or in any option agreement or Award in the manner
and to the extent it shall deem expedient to carry the Plan, any option
agreement or Award into effect and it shall be the sole and final judge of such
expediency. All decisions by the Board shall be final and binding on all
interested persons. Neither the Company nor any member of the Board shall be
liable for any action or determination relating to the Plan.

     b. APPOINTMENT OF COMMITTEE.  To the extent permitted by applicable law,
the Board may delegate any or all of its powers under the Plan to one or more
committees or subcommittees of the Board (a "COMMITTEE"). All references in the
Plan to the "BOARD" shall mean such Committee or the Board.

     c. DELEGATION TO EXECUTIVE OFFICERS.  To the extent permitted by applicable
law, the Board may delegate to one or more officers of the Company the power to
grant Awards and exercise such other powers under the Plan as the Board may
determine; provided, however, that the Board shall fix the maximum number of
Awards to be granted and the maximum number of shares issuable to any one
Participant pursuant to Awards granted by such officer or officers. All such
Awards shall be documented in the same manner and fashion as Awards made by the
Board. The Board may, by a resolution adopted by the board, authorize one or
more officers of the corporation to do one or both of the following: (i)
designate officers and employees of the corporation or of any of its
subsidiaries to be recipients of Awards created by the corporation and (ii)
determine the number of such Awards to be received by such officers and
employees; provided, however, that the resolution so authorizing such officer or
officers shall specify the maximum number of Awards such officer or officers may
so award. The Board may not authorize an officer to designate himself or herself
as a recipient of any such Awards.

     d. APPLICABILITY OF RULE 16b-3.  Those provisions of the Plan which makes
express reference to Rule 16b-3 promulgated under the Securities and Exchange
Act of 1934 (the "EXCHANGE ACT") or, any successor rules ("RULE 16b-3") or which
are required in order for certain option transactions to qualify for exemption
under Rule 16b-3 shall apply only to such persons as are required to file
reports under Section 16 (a) of the Exchange Act (a "REPORTING PERSON").

                                       -1-
<PAGE>
     e. APPLICABILITY OF SECTION 162(m).  Those provisions of the Plan which are
required by or make express reference to Section 162(m) of the Internal Revenue
Code or any regulations thereunder, or any successor section of the Code or
regulations thereunder ("SECTION 162(m)") shall apply only while the Company is
a company that is subject to Section 162(m). Notwithstanding any provisions in
this Plan to the contrary, whenever the Board is authorized to exercise its
discretion in the administration or amendment of this Plan or any Award
hereunder or otherwise, the Board may not exercise such discretion in a manner
that would cause any outstanding Award that would otherwise qualify as
performance-based compensation under Section 162(m) to fail to so qualify under
Section 162(m).

     f. GRANT OF OPTIONS TO DIRECTORS AND OFFICERS.  The selection of a director
or an officer (as the terms "director" and "officer" are defined for purposes of
Rule 16b-3) as a participant, the timing of the grant of the Award, the exercise
price or sale price of the Award and the number of shares for which an Award may
be granted to such director or officer shall be determined either (i) by the
Board, of which all members shall be "disinterested persons" (as hereinafter
defined), or (ii) by a committee of two or more directors having full authority
to act in the matter, of which all members shall be "disinterested persons." For
the purposes of the Plan, a director shall be deemed to be "disinterested" only
if such person qualifies as a "disinterested person" within the meaning of Rule
16b-3 of the Exchange Act, as such terms are interpreted from time to time.

3.   STOCK AVAILABLE FOR AWARDS

     a. NUMBER OF SHARES.  Subject to adjustment under Section 3(c), the
aggregate number of shares of common stock of the Company (the "COMMON STOCK")
that may be issued pursuant to the Plan is 2,000,000 shares. Except as may be
prohibited by Rule 16b-3, if any Award expires, or is terminated, surrendered or
forfeited, in whole or in part, the unissued Common Stock covered by such Award
shall again be available for the grant of Awards under the Plan, subject to the
limitations set forth in Section 3b. If shares of Common Stock issued pursuant
to the Plan are repurchased by, or are surrendered or forfeited to, the Company
at no more than cost, such shares of Common Stock shall again be available for
the grant of Awards under the Plan; provided, however, that the cumulative
number of such shares that may be so reissued under the Plan will not exceed
2,000,000. Shares issued under the Plan may consist in whole or in part of
authorized but unissued shares or treasury shares.

     b. PER-PARTICIPANT LIMIT.  Subject to adjustment under Section 3(c), no
Participant may be granted Awards to purchase, over the ten year term of this
Plan, more than an aggregate of 1,000,000 shares of Common Stock.

     c. ADJUSTMENT TO COMMON STOCK.  In the event of any stock split, stock
dividend, extraordinary cash dividend, recapitalization, reorganization, merger,
consolidation, combination, exchange of shares, liquidation, spin-off, split-up,
or other similar change in capitalization or event, (i) the number and class of
securities available for Awards under the Plan and the per-Participant share
limit, (ii) the number and class of securities, vesting schedule and exercise
price per share subject to each outstanding Option (as defined below), (iii) the
repurchase price per security subject to repurchase, and (iv) the terms of each
other outstanding stock-based Award shall be adjusted by the Company (or
substituted Awards may be made) to the extent the Board shall determine, in good
faith, that such an adjustment (or substitution) is appropriate. If Section
8(f)(i) applies for any event, this Section 3(c) shall not be applicable.

4.   STOCK OPTIONS

     a. GENERAL.  The Board may grant options to purchase Common Stock (each, an
"OPTION") and determine the number of shares of Common Stock to be covered by
each Option, the exercise price of each Option and the conditions and
limitations applicable to the exercise of each Option and the Common Stock
issued upon the exercise of each Option, including vesting provisions,
repurchase provisions and restrictions relating to applicable federal or state
securities laws, as it considers advisable.

     b. INCENTIVE STOCK OPTIONS.  An Option that the Board intends to be an
"incentive stock option" as defined in Section 422 of the Code (an "INCENTIVE
STOCK OPTION") shall be granted only to employees of the Company and shall be
subject to and shall be construed consistently with the requirements of Section
422 of
                                       -2-
<PAGE>
the Code. The Board and the Company shall have no liability if an Option or any
part thereof that is intended to be an Incentive Stock Option does not qualify
as such. An Option or any part thereof that does not qualify as an Incentive
Stock Option is referred to herein as a "NONSTATUTORY STOCK OPTION."

     c. DOLLAR LIMITATION.  For so long as the Code shall so provide, Options
granted to any employee under the Plan (and any other plans of the Company)
which are intended to constitute Incentive Stock Options shall not constitute
Incentive Stock Options to the extent that such Options, in the aggregate,
become exercisable for the first time in any one calendar year for shares of
Common Stock with an aggregate Fair Market Value (as defined below) of more than
$100,000 (determined as of the respective date or dates of grant). To the extent
that any such Incentive Stock Options exceed the $100,000 limitation, such
Options shall be deemed to be Nonstatutory Stock Options.

     d. EXERCISE PRICE.  The Board shall establish the exercise price (or
determine the method by which the exercise price shall be determined) at the
time each Option is granted and specify the exercise price in the applicable
option agreement.

     e. DURATION OF OPTIONS.  Each Option shall be exercisable at such times and
subject to such terms and conditions as the Board may specify in the applicable
option agreement.

     f. EXERCISE OF OPTION.  Options may be exercised only by delivery to the
Company, or to such representative as the Company shall designate, by the proper
person of a notice of exercise, in writing or by electronic transmission,
together with payment in full as specified in Section 4(g) or the option
agreement for the number of shares for which the Option is exercised.

     g. PAYMENT UPON EXERCISE.  Common Stock purchased upon the exercise of an
Option shall be paid for by one or any combination of the following forms of
payment:

          (i) by check payable to the order of the Company;

          (ii) if the Common Stock is then publicly traded, to the extent
     permitted by applicable law and except as otherwise explicitly provided in
     the applicable option agreement, by delivery of an irrevocable and
     unconditional undertaking by a creditworthy broker to deliver promptly to
     the Company sufficient funds to pay the exercise price of the underlying
     Option being exercised, or delivery by the Participant to the Company of a
     copy of irrevocable and unconditional instructions to a creditworthy broker
     to deliver promptly to the Company cash or a check sufficient to pay the
     exercise price; or

          (iii) to the extent explicitly provided in the applicable option
     agreement by (a) delivery of shares of Common Stock owned by the
     Participant (such shares not having been acquired within the prior six
     months by the Participant pursuant to an Option exercise) valued at Fair
     Market Value (as determined in accordance with the Plan) or (b) payment of
     such other lawful consideration as the Board may determine. The fair market
     value of any other non-cash consideration which may be delivered upon
     exercise of an Option shall be determined in such manner as may be
     prescribed by the Board.

5.   RESTRICTED STOCK

     a. GRANTS.  The Board may grant Awards entitling recipients to acquire
shares of Common Stock, subject to (i) delivery to the Company by the
Participant of a check in an amount at least equal to the par value of the
shares purchased, and (ii) the right of the Company to repurchase all or part of
such shares at their issue price or other stated or formula price from the
Participant in the event that conditions specified by the Board in the
applicable Award are not satisfied prior to the end of the applicable
restriction period or periods established by the Board for such Award (each, a
"RESTRICTED STOCK AWARD").

     b. TERMS AND CONDITIONS.  The Board shall determine the terms and
conditions of any such Restricted Stock Award. Any stock certificates issued in
respect of a Restricted Stock Award shall be registered in the name of the
Participant and, unless otherwise determined by the Board, deposited by the
Participant, together with a stock power endorsed in blank, with the Company (or
its designee). After the expiration of the applicable restriction periods, the
Company (or such designee) shall deliver the certificates no longer subject to
such restrictions to the Participant or, if the Participant has died, to the
beneficiary designated by the
                                       -3-
<PAGE>
Participant, in a manner determined by the Board, to receive amounts due or
exercise rights of the Participant in the event of the Participant's death (the
"DESIGNATED BENEFICIARY"). In the absence of an effective designation by a
Participant, Designated Beneficiary shall mean the Participant's estate.

6.   OTHER STOCK-BASED AWARDS

     The Board shall have the right to grant other Awards based upon the Common
Stock having such terms and conditions as the Board may determine, including,
without limitation, the grant of shares based upon certain conditions, the grant
of securities convertible into Common Stock and the grant of stock appreciation
rights, phantom stock awards or stock units.

7.   AUTOMATIC OPTION GRANTS TO NON-EMPLOYEE DIRECTORS.

     a. AUTOMATIC GRANT OF OPTIONS.  Subject to the availability of shares under
this Plan, (a) each Non-Employee Director who is initially elected a member of
the Board during the term of this Plan shall, on the date of such initial
election without further action by the Board, be automatically granted a
Nonstatutory Stock Option to purchase 25,000 shares of Common Stock (an "INITIAL
OPTION"); and (b) on the first business day of July of each year, starting on
July 1, 2004, each Non-Employee Director then in office shall be automatically
granted a Nonstatutory Option to purchase 7,500 shares of Common Stock (an
"ANNUAL OPTION").

     b. OPTION PRICE.  The purchase price of the shares subject to each Initial
Option or Annual Option granted hereunder shall be 100% of the Fair Market Value
of such shares on the date of grant of such Option.

     c. PERIOD OF OPTIONS.  Unless sooner terminated in accordance with the
provisions of Section 11 of this Plan, each Initial Option and Annual Option
granted hereunder shall expire on the date which is ten years after the date of
grant of such Option.

     d. VESTING.

          (i) Initial Options and Annual Options granted under this Plan shall
     vest in the holder thereof and thus become fully exercisable on the first
     anniversary of the date of grant of such Option.

          (ii) Notwithstanding Section 7(d)(i), if a Non-Employee Director
     attends less than 75% of the meetings of the Board of Directors, together
     with the meetings of any committee of the Board of Directors of which he or
     she is a member (EACH A "BOARD MEETING"), held in any fiscal year, then
     such Non-Employee Director shall forfeit his or her exercise rights with
     respect to the Annual Option granted on the first business day of July of
     such fiscal year, in proportion to the percentage of Board Meetings not
     attended by such Non-Employee Director during the Default Year. By way of
     illustration, if a Non-Employee Director attends only 50% of the actual
     Board Meetings (whether regular or special) held in any fiscal year, then
     such Non-Employee Director shall forfeit the right to exercise 50% of the
     Annual Option granted on the first business day of July of such fiscal
     year.

8.   GENERAL PROVISIONS APPLICABLE TO AWARDS

     a. TRANSFERABILITY OF AWARDS.  Except as the Board may otherwise determine
or provide in an Award, Awards shall not be sold, assigned, transferred, pledged
or otherwise encumbered by the person to whom they are granted, either
voluntarily or by operation of law, except by will or the laws of descent and
distribution, and, during the life of the Participant, shall be exercisable only
by the Participant; provided, however, that Nonstatutory Options may be
transferred pursuant to a domestic relations order (as defined in the Code) or
to a grantor-retained annuity trust or a similar estate-planning vehicle in
which the trust is bound by all provisions of the Option which are applicable to
the Participant. References to a Participant, to the extent relevant in the
context, shall include references to authorized transferees.

     b. DOCUMENTATION.  Each Award under the Plan shall be evidenced by a
written instrument in such form as the Board shall determine or as executed by
an officer of the Company pursuant to authority delegated

                                       -4-
<PAGE>
by the Board. Each Award may contain terms and conditions in addition to those
set forth in the Plan, provided that such terms and conditions do not contravene
the provisions of the Plan.

     c. BOARD DISCRETION.  The terms of each type of Award need not be
identical, and the Board need not treat Participants uniformly.

     d. ADDITIONAL AWARD PROVISIONS.  To the extent permitted by applicable law,
the Board may, in its sole discretion, include additional provisions in any
Award granted under the Plan, including without limitation restrictions on
transfer, repurchase rights, commitments to pay cash bonuses, to make, arrange
for or guarantee loans, to transfer other property to a Participant upon the
exercise of an Award, or such other provisions as shall be determined by the
Board; provided, however, that such additional provisions shall not be
inconsistent with any other term or condition of the Plan.

     e. TERMINATION OF STATUS.  The Board shall determine the effect on an Award
of the disability, death, retirement, authorized leave of absence or other
change in the employment or other status of a Participant and the extent to
which, and the period during which, the Participant, or the Participant's legal
representative, conservator, guardian or Designated Beneficiary, may exercise
rights under the Award, subject to applicable law and the provisions of the Code
related to Incentive Stock Options; provided, however, that if a Non-Employee
Director shall cease to be a member of the Board for any reason other than "FOR
CAUSE" termination as defined in Section 11 of this Plan, the Initial Option and
each Annual Option granted to the Non-Employee Director shall remain exercisable
(to the extent any such Option was exercisable on the date the Non-Employee
Director ceased to be a member of the Board) until the expiration of such Option
in accordance with Section 7(c) of this Plan.

     f. ACQUISITION OF THE COMPANY; CONSEQUENCES OF AN ACQUISITION.

     (i) TREATMENT OF ACQUISITION.  Unless otherwise expressly provided in the
applicable Award, upon the occurrence of an Acquisition, the Board or the board
of directors of the surviving or acquiring entity (as used in this Section 8(f),
also the "BOARD"), shall, as to outstanding Awards (on the same basis or on
different bases, as the Board shall specify), make appropriate provision for the
continuation of such Awards by the Company or the assumption of such Awards by
the surviving or acquiring entity and by substituting on an equitable basis for
the shares then subject to such Awards either (a) the consideration payable with
respect to the outstanding shares of Common Stock in connection with the
Acquisition, (b) shares of stock of the surviving or acquiring corporation or
(c) such other securities as the Board deems appropriate, the fair market value
of which (as determined by the Board in its sole discretion) shall not
materially differ from the Fair Market Value of the shares of Common Stock
subject to such Awards immediately preceding the Acquisition. In addition to or
in lieu of the foregoing, with respect to outstanding Options, the Board may, on
the same basis or on different bases as the Board shall specify, upon written
notice to the affected Participants, provide that one or more Options then
outstanding must be exercised, in whole or in part, within a specified number of
days of the date of such notice, at the end of which period such Options shall
terminate; or provide that one or more Options then outstanding, in whole or in
part, shall be terminated in exchange for a cash payment equal to the excess of
the Fair Market Value of the shares subject to such Options over the exercise
price thereof; provided, however, that before terminating any portion of an
Option that is not vested or exercisable (other than in exchange for cash
payment), the Board must first accelerate in full the exercisability of the
portion that is to be terminated. Unless otherwise determined by the Board (on
the same basis or on different bases as the Board shall specify), any repurchase
rights or other rights of the Company that relate to an Award shall continue to
apply to consideration, including cash, that has been substituted, assumed or
amended for an Award pursuant to this Section 8(f)(i). The Company may hold in
escrow all or any portion of any such consideration in order to effectuate any
continuing restrictions.

     Notwithstanding the provisions of this Section 8(f), (i) immediately prior
to the consummation of an Acquisition, the remaining unvested portion of the
Initial Option and each Annual Option held by a Non-Employee Director shall
become vested and exercisable by such Non-Employee Director, and (ii) upon an
Acquisition, the vesting provisions of all Awards held by a Participant shall,
at a minimum, become accelerated by one year in the event that (a) the acquiring
or surviving entity does not assume the Award or replace the Award held by such
participant with a substantially similar Award, or (b) any such Participant,
                                       -5-
<PAGE>
who remains an employee of the Company or the acquiring or surviving entity
immediately following the consummation of the Acquisition, is terminated
"WITHOUT CAUSE" or terminates his or her own employment "FOR GOOD REASON" prior
to the first anniversary of the consummation of the Acquisition.

     It shall be deemed to be a constructive termination "WITHOUT CAUSE" or "FOR
GOOD REASON" if: (i) the Participant's annual salary or bonus arrangement is
actually reduced in any material way without his or her written consent; (ii)
the Participant is actually relocated to another office or facility to a
location outside of a radius of 30 miles from any Company facility at which the
Participant was employed at the time of the Acquisition and without the
Participant's written consent; (iii) there occurs an Acquisition, unless the
successor to which all or a significant portion of the Company's business and/or
assets have been transferred (directly or by operation of law) shall have
assumed all duties and obligations of the Company under this Plan; or (iv) the
successor to the Company shall have materially and adversely impaired
Participant's rights under this Plan.

     Notwithstanding anything herein to the contrary, as to any Participant, the
remaining unvested portion of any Option or Award held by such Participant shall
become vested and exercisable in the event of an Acquisition, if the
acceleration of such vesting is otherwise set forth in any employment offer
letter, employment agreement, option agreement or other agreement with such
person and such offer or agreement is executed at the time of, or reasonably
contemporaneous with, the initial employment of the Participant, or is otherwise
set forth in any option agreement or other agreement which provides for the
grant of additional Awards to a Participant following commencement of
employment.

     (ii). ACQUISITION DEFINED.  An "ACQUISITION" shall mean: (a) any merger,
business combination, consolidation or purchase of outstanding capital stock of
the Company in a business combination after which the voting securities of the
Company outstanding immediately prior thereto represent (either by remaining
outstanding or by being converted into voting securities of the surviving or
acquiring entity) less than 50% of the combined voting power of the voting
securities of the Company or such surviving or acquiring entity outstanding
immediately after such event (other than as a result of a financing
transaction); (b) any sale of all or substantially all of the capital stock or
assets of the Company (other than in a spin-off or similar transaction); or (c)
any other acquisition of the business of the Company in which the Company is the
target of the acquisition, as reasonably determined by the Board.

     (iii). ASSUMPTION OF OPTIONS UPON CERTAIN EVENTS.  In connection with a
merger or consolidation of an entity with the Company or the acquisition by the
Company of property or stock of an entity, the Board may grant Awards under the
Plan in substitution for stock and stock-based awards issued by such entity or
an affiliate thereof. The substitute Awards shall be granted on such terms and
conditions as the Board considers appropriate in the circumstances.

     g. PARACHUTE PAYMENTS AND PARACHUTE AWARDS.  Notwithstanding the provisions
of Section 8(f), if, in connection with an Acquisition described therein, a tax
under Section 4999 of the Code would be imposed on the Participant (after taking
into account the exceptions set forth in Sections 280G(b)(4) and 280G(b)(5) of
the Code), then the number of Awards which shall become exercisable, realizable
or vested as provided in such section shall be reduced (or delayed), to the
minimum extent necessary, so that no such tax would be imposed on the
Participant (the Awards not becoming so accelerated, realizable or vested, the
"PARACHUTE AWARDS"); provided, however, that if the "AGGREGATE PRESENT VALUE" of
the Parachute Awards would exceed the tax that, but for this sentence, would be
imposed on the Participant under Section 4999 of the Code in connection with the
Acquisition, then the Awards shall become immediately exercisable, realizable
and vested without regard to the provisions of this sentence. For purposes of
the preceding sentence, the "AGGREGATE PRESENT VALUE" of an Award shall be
calculated on an after-tax basis (other than taxes imposed by Section 4999 of
the Code) and shall be based on economic principles rather than the principles
set forth under Section 280G of the Code and the regulations promulgated
thereunder. All determinations required to be made under this Section 8(g) shall
be made by the Company.

     h. AMENDMENT OF AWARDS.  The Board may amend, modify or terminate any
outstanding Award including, but not limited to, substituting therefor another
Award of the same or a different type, changing the date of exercise or
realization, modifying the exercise price, and converting an Incentive Stock
                                       -6-
<PAGE>
Option to a Nonstatutory Stock Option, provided that, except as otherwise
provided in Section 8(g), the Participant's consent to such action shall be
required unless the Board determines that the action, taking into account any
related action, would not materially and adversely affect the Participant.

     i. CONDITIONS ON DELIVERY OF STOCK.  The Company will not be obligated to
deliver any shares of Common Stock pursuant to the Plan or to remove
restrictions from shares previously delivered under the Plan until (i) all
conditions of the Award have been met or removed to the satisfaction of the
Company, (ii) in the opinion of the Company's counsel, all other legal matters
in connection with the issuance and delivery of such shares have been satisfied,
including any applicable securities laws and any applicable stock exchange or
stock market rules and regulations, and (iii) the Participant has executed and
delivered to the Company such representations or agreements as the Company may
consider appropriate to satisfy the requirements of any applicable laws, rules
or regulations.

     j. ACCELERATION.  The Board may at any time provide that any Options shall
become immediately exercisable in full or in part, that any Restricted Stock
Awards shall be free of some or all restrictions, or that any other stock-based
Awards may become exercisable in full or in part or free of some or all
restrictions or conditions, or otherwise realizable in full or in part, as the
case may be, despite the fact that the foregoing actions may (i) cause the
application of Sections 280G and 4999 of the Code if a change in control of the
Company occurs, or (ii) disqualify all or part of the Option as an Incentive
Stock Option. In the event of the acceleration of the exercisability of one or
more outstanding Options, including pursuant to Section 8(f)(i), the Board may
provide, as a condition of full exercisability of any or all such Options, that
the Common Stock or other substituted consideration, including cash, as to which
exercisability has been accelerated shall be restricted and subject to
forfeiture back to the Company at the option of the Company at the cost thereof
upon termination of employment or other relationship, with the timing and other
terms of the vesting of such restricted stock or other consideration being
equivalent to the timing and other terms of the superseded exercise schedule of
the related Option.

9.   WITHHOLDING

     Prior to the issuance of any shares of Common Stock subject to an Award,
the Company shall have the right to deduct from payments of any kind otherwise
due to the Participant of an award any federal, state or local taxes of any kind
required by law to be withheld with respect to any shares issued upon exercise
of an Option under the Plan or the purchase of shares subject to an Award.
Subject to the prior approval of the Company, which may be withheld by the
Company in its sole discretion, a Participant may elect to satisfy such tax
obligations, in whole or in part, (i) by causing the Company to withhold shares
of Common Stock otherwise issuable pursuant to the exercise of an Option or the
purchase of shares subject to an Award or (ii) by delivering to the Company
shares of Common Stock already owned by the Participant. The shares so withheld
or delivered shall have an aggregate Fair Market Value equal to the amount of
the withholding obligation. A Participant who has made an election pursuant to
this Section may only satisfy his or her withholding obligation with shares of
Common Stock which are not subject to any repurchase, forfeiture, unfulfilled
vesting or other similar requirements. The Company may, to the extent permitted
by law, deduct any such tax obligations from any payment of any kind otherwise
due to a Participant.

10.  COMPANY'S RIGHT OF REPURCHASE

     a. Repurchase Option; Termination of Award.  If, with respect to a
Participant, any of the events specified in Section 10(b) below occur, then,

          (i) with respect to those shares of Common Stock acquired pursuant to
     an Award by the Participant within the six month period preceding the
     occurrence of such event, and

          (ii) with respect to all shares of Common Stock acquired pursuant to
     an Award by the Participant after the occurrence of such event,

     within 180 days after the Company receives actual knowledge of the event
(the "REPURCHASE PERIOD"), the Company shall have the right, but not the
obligation, to repurchase from the Participant, or his or her legal
                                       -7-
<PAGE>
representative, as the case may be, all or a portion of the shares of Common
Stock set forth in (i) and (ii) above, regardless of whether such Participant is
then still employed or engaged by, or otherwise has a relationship with the
Company (the "REPURCHASE OPTION"). The Repurchase Option shall be exercised by
the Company by giving the Participant, or his or her legal representative,
written notice of its intention to exercise the Repurchase Option on or before
the last day of the Repurchase Period. The Company may exercise its Repurchase
Option by tendering to the Participant, or his or her legal representative, or
delivering to an escrow account for the benefit of the Participant, or his or
legal representative, an amount equal to the price originally paid by the
Participant to the Company, subject to adjustment as provided in Section 3(c),
for each share of Common Stock to be repurchased by the Company hereunder. Upon
timely exercise of the Repurchase Option in the manner provided in this Section
10(a), the Participant, or his or her legal representative, shall deliver to the
Company the stock certificate or certificates representing the shares purchased
by the Participant under this Plan, as set forth in (i) and (ii) above, and to
be repurchased by the Company hereunder, duly endorsed and free and clear of any
and all liens, charges and encumbrances. If the Participant shall fail to
deliver such stock certificate or certificates, the Company shall be entitled to
instruct its transfer agent to take such action as may be necessary to remove
the requisite number of shares of Common Stock registered in the name of the
Participant from the books and records of the Company. The Repurchase Option and
any right of the Company to payment pursuant to Section 10(c) hereof shall be a
right of the Company in addition to any and all other rights of the Company and
remedies available to the Company, whether at law or in equity. Furthermore,
upon the Company receiving actual knowledge of the occurrence of any of the
events specified in Section 10(b) below, all Awards granted to such Participant
shall immediately terminate and shall thereupon not be exercisable to any extent
whatsoever. The Board or, in the case of an employee that is not an executive
officer, the President may waive or modify the provisions of this Section 10
with respect to any individual Participant, with regard to the facts and
circumstances of any particular situation involving a determination under this
Section 10.

     b. TRIGGERING EVENTS. The Company shall have the Repurchase Option in the
event that any of the following events shall occur:

          (i) gross misconduct by the Participant which results in loss, damage
     or injury to the Company, its goodwill, business or reputation;

          (ii) the commission of an act of embezzlement, fraud or breach of
     fiduciary duty which results in loss, damage or injury to the Company, its
     goodwill, business or reputation;

          (iii) the unauthorized disclosure or misappropriation of any trade
     secret or confidential information of the Company or any third party who
     has a business relationship with the Company;

          (iv) the commission of an act which induces any customer or
     prospective customer of the Company to breach a contract with the Company
     or to decline to do business with the Company;

          (v) the conviction of the Participant of a felony which materially
     interferes with such Participant's ability to perform his or her services
     for the Company or which results in loss, damage or injury to the Company,
     its goodwill, business or reputation;

          (vi) the violation (or threatened violation) by the Participant, in
     any material respect, of a non-competition, non-solicitation,
     non-disclosure or assignment of inventions covenant between the Participant
     and the Company;

          (vii) the engagement, whether directly or indirectly, by the
     Participant, during the period of his or her employment, engagement or
     relationship with the Company or for a period of one (1) year after the
     termination of his or her employment, engagement or relationship (for any
     reason), in a business or other commercial activity which is or may be
     competitive with the business being conducted by the Company at such time;

          (viii) the solicitation, diversion or taking away by the Participant,
     or the attempted solicitation, diversion or taking away by the Participant,
     whether directly or indirectly, during the period of his or her employment,
     engagement or relationship with the Company or for a period of one (1) year
                                       -8-
<PAGE>
     after the termination of his or her employment, engagement or relationship
     (for any reason), of any of the customers, business or prospective
     customers of the Company then in existence and with whom the Participant
     had contact or about whom the Participant gained confidential information
     during the Participant's employment, engagement or relationship with the
     Company (prospective customer shall mean any person or entity being
     solicited by the Company during the time the Participant was employed or
     engaged by the Company); or

          (ix) the solicitation, recruiting or hiring by the Participant, or the
     attempted solicitation, recruiting, or hiring by the Participant, whether
     directly or indirectly, during the period of his or her employment or for a
     period of one (1) year after the termination of his or her employment,
     engagement or relationship (for any reason), engagement or relationship
     with the Company, of any employee of the Company.

     c. REPURCHASE PRICE.  In the event that at the time the Company wishes to
exercise its Repurchase Option, the Participant ceases to own a sufficient
number of shares of Common Stock acquired by him or her under the Plan to
satisfy the Company's Repurchase Option, in addition to performing any
obligations necessary to satisfy the Company's exercise of its Repurchase Option
of those shares of Common Stock available for repurchase, the Participant shall
be required to deliver to the Company, for each share of Common Stock that is
the subject of the Repurchase Option and is not available for repurchase as it
has been sold or transferred, an aggregate cash amount, if positive, equal to
the difference between the Fair Market Value of each share of Common Stock sold
or transferred by the Participant and the price originally paid by the
Participant to the Company for each such share of Common Stock so sold or
transferred by the Participant, as adjusted pursuant to Section 3(c). The Fair
Market Value of each share of Common Stock sold or transferred by the
Participant shall be determined as of the date of such sale or transfer.

11.  NO EXERCISE OF OPTION IF EMPLOYMENT, ENGAGEMENT OR RELATIONSHIP TERMINATED
     FOR CAUSE

     If a Participant's employment, engagement or relationship with the Company
is terminated "FOR CAUSE," the Award may terminate, (pursuant to a determination
of the Board in accordance with the terms of the applicable agreement for such
Award), on the date of such termination and the Option shall thereupon not be
exercisable to any extent whatsoever. For purposes of this Section 11, "FOR
CAUSE" is any conduct during the term of a Participant's employment, engagement
or relationship with the Company that gives rise to the Company's Repurchase
Option, as set forth in Section 10 of this Plan, in each case, as determined by
the Board or, in the case of employees who are not executive officers, by the
President. The Board or, in the case of an employee that is not an executive
officer, the President may waive or modify the provisions of this Section 11
with respect to any individual Participant, with regard to the facts and
circumstances of any particular situation involving a determination under this
Section 11.

12.  MISCELLANEOUS

     a. DEFINITIONS.

          (i) "COMPANY," for purposes of eligibility under the Plan, shall
     include any present or future subsidiary corporations of Presstek, Inc., as
     defined in Section 424(f) of the Code (a "SUBSIDIARY"), and any present or
     future parent corporation of Presstek, Inc., as defined in Section 424(e)
     of the Code. For purposes of Awards other than Incentive Stock Options, the
     term "COMPANY" shall include any other business venture in which the
     Company has a direct or indirect significant interest, as determined by the
     Board in its sole discretion.

          (ii) "CODE" means the Internal Revenue Code of 1986, as amended, and
     any regulations promulgated thereunder.

          (iii) "EMPLOYEE," for purposes of eligibility under the Plan, shall
     include a person to whom an offer of employment has been extended by the
     Company and who has actually commenced employment with the Company, whether
     full or part-time status.

          (iv) "FAIR MARKET VALUE" of the Company's Common Stock on any date
     means (i) the average (on that date) of the high and low prices of the
                                       -9-
<PAGE>
     Common Stock on the principal national securities exchange on which the
     Common Stock is traded, if the Common Stock is then traded on a national
     securities exchange; or (ii) the last reported sale price (on that date) of
     the Common Stock on the NASDAQ National Market, if the Common Stock is not
     then traded on a national securities exchange; or (iii) the average of the
     closing bid and asked prices last quoted (on that date) by an established
     quotation service for over-the-counter securities, if the Common Stock is
     not reported on the NASDAQ National Market; or (iv) if the Common Stock is
     not publicly traded, the fair market value of the Common Stock as
     determined by the Board after taking into consideration all factors which
     it deems appropriate, including, without limitation, recent sale and offer
     prices of the Common Stock in private transactions negotiated at arm's
     length, revenues and operating earnings of the Company for the most recent
     twelve-month period, projected revenues and operating earnings of the
     Company for the next twelve-month period, discounted positive cash flow of
     the Company, the nature and timing of any product releases and product
     shipments, generation of significant orders, cash flow from operations,
     consummation of relationships with strategic partners, the book value of
     the Company's assets as recorded on the most recently prepared balance
     sheet of the Company, the price/earnings multiples of comparable publicly
     traded companies (and adjusted for any illiquidity associated with the
     Company's Common Stock). The Board or Committee's determination shall be
     conclusive as to the Fair Market Value of the Common Stock.

     b. NO RIGHT TO EMPLOYMENT OR OTHER STATUS.  No person shall have any claim
or right to be granted an Award, and the grant of an Award shall not be
construed as giving a Participant the right to continued employment or any other
relationship with the Company. The Company expressly reserves the right at any
time to dismiss or otherwise terminate its relationship with a Participant free
from any liability or claim under the Plan.

     c. NO RIGHTS AS STOCKHOLDER.  Subject to the provisions of the applicable
Award, no Participant or Designated Beneficiary shall have any rights as a
stockholder with respect to any shares of Common Stock to be distributed with
respect to an Award until becoming the record holder thereof.

     d. EFFECTIVE DATE AND TERM OF PLAN.  The Plan shall become effective on the
date on which it is adopted by the Board. No Awards shall be granted under the
Plan after the completion of ten years from the date on which the Plan was
adopted by the Board, but Awards previously granted may extend beyond that date.

     e. AMENDMENT OF PLAN.  The Board may amend, suspend or terminate the Plan
or any portion thereof at any time subject, in the case of amendments, to any
applicable statutory or regulatory requirements to obtain stockholder approval
when and if so required.

     f. ARBITRATION.  Any dispute, controversy, or claim arising out of, in
connection with this Plan or any agreement applicable to an Award granted under
this Plan, or relating to the performance of any such agreement, shall be
settled by arbitration in the state of New Hampshire, pursuant to the rules then
obtaining of the American Arbitration Association. Any award shall be final,
binding and conclusive upon the parties and a judgment rendered thereon may be
entered in any court having jurisdiction thereof.

     g. GOVERNING LAW.  The provisions of the Plan and all Awards made hereunder
shall be governed by and interpreted in accordance with the laws of Delaware,
without regard to any applicable conflicts of law.

                      Adopted by the Board of Directors on:
                                February 11, 2003

                        Approved by the stockholders on:
                                  June 17, 2003

                                      -10-EXHIBIT 10.26
                                                                   -------------

                    SECOND AMENDMENT TO STANDARD OFFICE LEASE

     This Second Amendment to Standard Office Lease (this "Amendment") is made
as of the 27 day of June 2003, by and between PACIFIC RESOURCES PCX DEVELOPMENT
INC., a California corporation ("Landlord"), and SALON MEDIA GROUP, INC., a
Delaware corporation ("Tenant").

                                    RECITALS

     A. Landlord and Tenant, then known as Salon.com, a Delaware corporation,
entered into that certain Standard Office Lease dated as of July 9, 1999 (as
amended by the First Amendment, collectively, the "Lease") for certain premises
(collectively the "Original Premises") consisting of the Fifteenth (15th) and
Sixteenth (16th) Floors of the building located at 22 Fourth Street, in the City
and County of San Francisco, California (the "Building"). Subsequently, Landlord
and Tenant entered into a First Amendment to Standard Office Lease dated as of
July 31, 2002 (the "First Amendment").

     B. Tenant, with Landlord's consent, entered into a sublease made as of
January 15, 2002 (the "Sublease") of a portion of the Premises located on the
15th Floor of the Building with Stockpoint, Inc. (along with all subtenants and
assignees, "Subtenant"), which Sublease expired as of February 28, 2003.

     C. Tenant has failed to pay Landlord all sums due and owing under the Lease
as Base Rent and Additional Rent for the periods relating to November, 2002
through February, 2003, as well as a shortfall in Tenant's Percentage Share of
Operating Expenses and of Property Taxes applicable to calendar, 2002, in a
total amount equal to Two Hundred Sixty Thousand Four Hundred Ninety One and
No/100 Dollars ($260,491.00) (along with the "Deferred Escalations" (as
hereinafter defined), the "Deferred Rent").

     D. Landlord and Tenant desire to amend the Lease, among other things, to
decrease the size of the Original Premises, reduce the term of the Lease, reduce
the Base Rent payable thereunder, and provide for a schedule for the payment of
the Deferred Rent, upon the terms and conditions set forth below.

     NOW, THEREFORE, in consideration of the foregoing, the parties hereto agree
as follows:

     1. Definitions. The terms used herein and not otherwise defined shall have
the meaning for such terms as set forth in the Lease. As used herein, the term
"Effective Date" shall mean March 1, 2003.

     2. Substitution of Premises. Effective as of the date hereof, instead of
the Original Premises let under the Lease, Tenant shall lease all of those
certain premises, constituting a portion of the Original Premises, on the
Sixteenth Floor of the Building, comprising 10,148 rentable square feet (the

                                        1
<PAGE>
"Substituted Premises"). All terms, covenants and conditions of the Lease shall
cover the lease of the Substituted Premises, except as otherwise expressly set
forth herein. Except as expressly provided below, Tenant shall surrender to
Landlord all of its interest in the 15th Floor of the Building and the
improvements therein, and shall vacate therefrom on or before the date hereof.
Tenant hereby represents and warrants that Subtenant has vacated the premises
under the Sublease, the Sublease has terminated and Subtenant has no right,
title or interest in the Original Premises as of the Effective Date. Except as
expressly provided below, Tenant acknowledges that Tenant shall have no right to
use and shall not use the internal stairwell connecting the 15th and 16th Floors
of the Building from and after the date hereof, and Landlord may, at its sole
discretion, elect to remove such stairwell and seal the floor penetrations
relating thereto at any time. Landlord shall not be responsible for making any
improvements to the Substituted Premises and Tenant agrees to accept the
Substituted Premises in their existing condition, "as-is," on the date hereof.
From and after the date hereof, wherever in the Lease, as amended hereby, the
term "Premises" is used, it shall mean and refer to the Substituted Premises.
Landlord hereby grants Tenant a license, revocable upon sixty (60) days' prior
written notice to Tenant, within which time Tenant shall relocate its equipment
in the Server Room (as defined below) to the Substituted Premises or elsewhere
in the Building as set forth in Paragraph 9 of this Amendment, at its sole
expense, to access, repair, operate and maintain its computer and server and
related equipment in the server room located on the 15th Floor of the Building
(the "Server Room"). All of Tenant's access, use and occupation of the 15th
Floor of the Building shall be subject to and in compliance with the terms of
the Lease as if it were a part of the Premises. Tenant shall ensure that
Landlord has access to the Server Room, by delivery of a key to any and all
locks located thereon, for the purpose of Landlord's marketing of the 15th Floor
for lease.

     3. Acceleration of Termination Date. Effective as of the date hereof, the
Termination Date for the Lease shall be February 28, 2005.

     4. Amendment of Base Rent. Commencing on the Effective Date and continuing
throughout the remainder of the Term of the Lease, the monthly Base Rent payable
under the Lease shall be Twenty Thousand Eight Hundred Thirty Three and 33/100
Dollars ($20,833.33). Landlord acknowledges the timely receipt of the monthly
Base Rent due in the amount set forth in this Paragraph 4 for the months of
March, April, May and June, 2003.

     5. Amendment of Tenant's Share. Commencing on the Effective Date and
continuing throughout the remainder of the Term of the Lease, Tenant's
Percentage Share of Operating Expenses and of Property Taxes shall be 5.274%
(the numerator of which is the net rentable area of the Premises (10,148 sq.
ft.) and the denominator of which is the net rentable office area of the
Building (192,422 sq. ft.)). Landlord further agrees that Tenant's estimated
monthly payment of its Percentage Share of Operating Expenses and of Property
Taxes for the months of March, April, May and June, 2003, in the amount of
$1,866.00 per month (for a total amount of Seven Thousand Four Hundred Sixty
Four and No/100 Dollars ($7464.00) (the "Deferred Escalations"), may be paid
when and as set forth in Paragraph 8 of this Amendment below as a part of the
Deferred Rent.

     6. Amendment of Security Deposit. As of the date hereof, Section 35 of the
Lease is hereby deleted in its entirety.

                                        2
<PAGE>
     7. Basic Lease Information. To reflect the leasing of the Substituted
Premises and the accompanying amendments to the Lease, as of the Effective Date
(or the date hereof as they relate to the reduction in the size of the Premises
and the Security Deposit), the Basic Lease Information of the Lease shall be
amended by deleting the definitions of PREMISES, NET RENTABLE AREA OF PREMISES,
BASE RENT (PER SQUARE FOOT PER ANNUM), BASE RENT (PER MONTH), ANTICIPATED
TERMINATION DATE, TERMINATION DATE, LENGTH OF TERM, TENANT'S PERCENTAGE SHARE OF
OPERATING EXPENSES AND OF PROPERTY TAXES and SECURITY DEPOSIT contained therein
and substituting the following in their place:

PREMISES:                             Floor: 16th          Suite: 1600

NET RENTABLE AREA OF                  Ten Thousand One Hundred Forty Eight
PREMISES                              (10,148) square feet

BASE RENT (PER MONTH):                $20,833.33

TERMINATION DATE:                     February 28, 2005

SECURITY DEPOSIT:                     None

TENANT'S PERCENTAGE SHARE             5.274%; such share is a fraction, the
OF OPERATING EXPENSES AND             numerator of which is the net rentable
OF PROPERTY TAXES:                    area of the Premises (10,148 sq. ft.) and
                                      the denominator of which is the net
                                      rentable office area of the Building
                                      (192,422 sq. ft.).

     8. Payment of Deferred Rent. In consideration of Landlord's entering into
this Amendment and, among other things, Landlord's agreement to reduce the Term
of the Lease, recapture a portion of the Original Premises as of the Effective
Date, and reduce the Base Rent payable on and after the Effective Date, Tenant
shall make the following payments to Landlord at the following times on account
of the Deferred Rent (which amount Tenant acknowledges was past due and owing
and is due and owing as of the date hereof), and for as long as and only for as
long as Tenant timely makes the following payments Tenant shall not be in
default of the Lease for failing to timely pay the Deferred Rent:

          (a) On or before June 30, 2003, the sum of Seventy Five Thousand and
No/100 Dollars ($75,000.00), in cash. Such sum shall be paid no later than upon
mutual execution and delivery of this Amendment;

          (b) On or before October 1, 2003, the sum of Fifty Thousand and No/100
Dollars ($50,000.00), in cash; and

          (c) Commencing on November 1, 2003, and continuing throughout the Term
of the Lease, as amended hereby, on or before the first day of each calendar
month thereafter, the monthly sum of Eight Thousand Nine Hundred Thirty Five and
No/100 Dollars ($8,935.00), in cash (the total of such sixteen monthly payments
to be One Hundred Forty Two Thousand Nine Hundred Sixty and No/100 Dollars
($142,960.00)).

                                        3
<PAGE>
     Notwithstanding any contrary expression or implication contained herein, in
the event that the Lease is terminated for any reason prior to the Termination
Date, as amended hereby, any and all sums of Deferred Rent not then received by
Landlord shall be deemed immediately due and payable as of the day immediately
preceding the date of early termination of the Lease.

     9. Relocation of Premises. In further consideration of Landlord's
concessions contained in this Amendment, Tenant grants Landlord the right at any
time to substitute other premises within the Building for the Premises for all
uses and purposes as though originally leased to Tenant by the Lease, as amended
hereby, upon sixty (60) days' prior written notice to Tenant. The then
substituted premises shall contain at least 9,000 rentable square feet and
improvements of similar utility to Tenant as the Substituted Premises, and
Tenant's Percentage Share of Operating Expenses and of Property Taxes shall be
adjusted appropriately. Monthly Base Rent (as well as Deferred Rent) payable
under the Lease shall be unchanged. Tenant shall bear its own moving expenses
incident to such substitution of premises. If Tenant is so relocated, Landlord
and Tenant shall amend the Basic Lease Information of the Lease to reflect the
changed terms of the Lease and Tenant shall surrender all of its rights and
interests in the Substituted Premises and improvements therein. And all other
provisions of the Lease shall thereafter remain in full force and effect.

     10. Compensation to Landlord for Modification of Lease. In further
consideration of Landlord's agreement to the early termination of the Lease and
the reduction of Base Rent payable thereunder, Tenant agrees that Landlord may
immediately draw on the irrevocable standby Letter(s) of Credit issued by
Comerica Bank and currently held by Landlord as the Security Deposit under the
Lease, in the amount of $420,000.00 (collectively, if more than one and as
amended from time to time, the "Letter of Credit") in their full amount. Tenant
hereby waives any and all of its rights under the Lease for the return,
termination or reduction of the Security Deposit in the amount of the Letter of
Credit, and hereby waives the provisions of California Civil Code Section
1950.7(c), and all other provisions of law now in force or which may become in
force after the date of this Amendment relating to Landlord's right to or use of
the proceeds of the Letter of Credit or the Security Deposit. Tenant hereby
agrees to execute and provide to Landlord such further documents and to take all
further acts as shall be deemed necessary by Landlord in its sole discretion to
cause the release of the proceeds of the Letter of Credit to Landlord.

     11. Entire Agreement. This Amendment and the Lease contain all of the
covenants, conditions and agreements between the parties concerning the
Premises, and shall supersede all prior correspondence, agreements and
understandings concerning the Premises, both oral and written.

     12. Authority. Each person executing this Amendment on behalf of a party
hereto represents and warrants that he or she is authorized and empowered to do
so and to thereby bind the party on whose behalf he or she is authorized and
empowered to do so and to thereby bind the party on whose behalf he or she is
signing.

     13. Effect of Amendment. Except as specifically amended hereby, all of the
terms and conditions of the Lease shall be and remain in full force and effect.

                                        4
<PAGE>
     14. Incorporation of Recitals. The Recitals and Sections 1 through 10,
inclusive, set forth in this Amendment are hereby incorporated into the Lease by
this reference.

     IN WITNESS WHEREOF, the parties have executed this Amendment to be
effective as of the date and year hereinabove first written.

                                      Landlord:  PACIFIC RESOURCES PCX
                                      DEVELOPMENT, INC., a California
                                      corporation

                                      By:   /s/ Kevin Wu
                                            -------------------------------
                                      Name: Kevin Wu
                                            -------------------------------
                                      Its:  Vice President
                                            -------------------------------

                                      Tenant:  SALON MEDIA GROUP, INC.,
                                      a Delaware corporation

                                      By:   /s/ Michael O'Donnell
                                            -------------------------------
                                      Name: Michael O'Donnell
                                            -------------------------------
                                      Its:  Chief Executive Officer
                                            and President
                                            -------------------------------

                                        5

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00054-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00054-of-00352.parquet"}]]