Document:

EXHIBIT 10.12
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                               SECURITY AGREEMENT
                             (INTELLECTUAL PROPERTY)

         THIS SECURITY AGREEMENT (the "Agreement"), is made as of this 15 day of
October, 2003, by and between LASERTEL INC., an Arizona corporation having its
principal office at 7775 North Casa Grande Highway, Marana, Arizona 85745
(hereinafter, together with any successors to and assigns of any or all of its
present or future interests in the Intellectual Property Collateral, as
hereinafter defined, other than the Lenders, as hereinafter defined, referred to
jointly, severally, individually, and collectively as the "Debtor"), and
CITIZENS BANK NEW HAMPSHIRE, a New Hampshire guaranty savings bank having an
office at 875 Elm Street, Manchester, New Hampshire 03101 (together with its
successors and assigns, the "Secured Party"), acting as agent under the terms of
that certain Credit Agreement dated as of even date herewith (as it may be
amended from time to time, the "Credit Agreement") by and among the Debtor,
Presstek, Inc., as Borrower, the Secured Party and the banks that are parties
thereto (the "Lenders") (the "Secured Party").

         WHEREAS, the Debtor has requested that the Lenders enter into the
Credit Agreement with the Debtor, and to extend credit to the Debtor on the
terms and subject to the conditions set forth therein; and

         WHEREAS, it is a condition precedent to the Lenders' agreement to enter
into the Credit Agreement and extend credit to the Debtor thereunder that the
Debtor execute and deliver this Agreement and grant the security interest herein
provided. Certain terms are used in this Agreement as specifically defined
herein. These definitions are set forth or referred to in Section 9 hereof. Any
and all terms not described herein shall have the meaning ascribed to them in
the Credit Agreement.

         NOW, THEREFORE, in order to induce the Lenders to enter into the Credit
Agreement and extend credit to the Debtor thereunder, and in consideration
thereof, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as
follows:

         1. Granting Clause; Intellectual Property Collateral; Assignments.

         1.1 Granting Clause. For good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the Debtor hereby sells,
assigns and transfers unto the Secured Party, and hereby grants to the Secured
Party, a first security interest (except as noted in the attached Schedules) in
the Intellectual Property Collateral, to secure the Secured Obligations and
Debtor's obligations under the Credit Agreement and the Security Agreement both
between the Debtor and the Secured Party pursuant to which the Secured
Obligations are incurred.

         1.2 Intellectual Property Collateral. As used herein, the term
"Intellectual Property Collateral" shall mean all now owned or hereafter
acquired or arising:

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         (a) (i) patents and patent applications, including, without limitation,
those listed on Schedule 1.2(a) hereto and the inventions and improvements
described and claimed therein, and patentable inventions, (ii) the reissues,
divisions, continuations, continuations-in-part, renewals and extensions of any
of the foregoing, (iii) all income, royalties, damages or payments now or
hereafter due and/or payable under any of the foregoing or with respect to any
of the foregoing, including without limitation, damages or payments for past or
future infringements of any of the foregoing, (iv) the right to sue for past,
present and future infringements of any of the foregoing, and (v) all rights
corresponding to any of the foregoing throughout the world (collectively, the
"Patents");

         (b) (i) trademarks, service marks, trademark registrations, service
mark registrations, trade names, collective marks and certification marks, and
trademark and servicemark applications, and trade dress, including logos and/or
designs, in connection with any of the foregoing including, without limitation,
those listed on Schedule 1.2(b) hereto, (ii) all renewals of any of the
foregoing, (iii) all income, royalties, damages and payments now or hereafter
due and/or payable under any of the foregoing or with respect to any of the
foregoing, including without limitation, damages or payments for past or future
infringements of any of the foregoing, (iv) the right to sue for past, present
and future infringements of any of the foregoing, (v) all rights corresponding
to any of the foregoing throughout the world, and (vi) the goodwill of the
Debtor's business connected with and symbolized by any of the foregoing
(collectively, the "Marks");

         (c) (i) trade secrets, including, without limitation, patentable
inventions, any and all product formulae, manufacturing techniques, product
specifications, financial information, customer lists, computer data and
programs, and marketing and business plans, (ii) all income, royalties, damages
and payments now or hereafter due and/or payable under any of the foregoing or
with respect to any of the foregoing, including without limitation, damages or
payments for past or future infringements of any of the foregoing, (iii) the
right to sue for past, present and future infringements of any of the foregoing,
and (iv) all rights corresponding to any of the foregoing throughout the world
(collectively, the "Trade Secrets").

         (d) (i) copyrights, copyright registrations, and copyright
applications, including, without limitation, those listed on Schedule 1.2(d)
hereto and copyrights for computer programs and all tangible property embodying
the copyrights, (ii) the reissues, renewals and extensions of any of the
foregoing, (iii) all income, royalties, damages and payments now or hereafter
due and/or payable under any of the foregoing or with respect to any of the
foregoing, including without limitation, damages or payments for past or future
infringements of any of the foregoing, (iv) the right to sue for past, present
and future infringements of any of the foregoing, and (v) all rights
corresponding to any of the foregoing throughout the world (collectively, the
"Copyrights");

         (e) licenses and license agreements, whether as a licenser or licensee,
with any other Person, including, without limitation, the licenses of the Debtor
listed on Schedule 1.2(e) hereto, relating to the use of any Patents, Marks,
Trade Secrets or Copyrights, and all rights of the Debtor under any of the
foregoing, including the right to (i) prepare for sale, (ii) sell, and (iii)

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advertise for sale, all inventory now or hereafter owned by the Debtor and now
or hereafter covered by such license (collectively, the "Licenses");

together with all proceeds (cash and non-cash) and products of the foregoing.

         1.3 Assignments. In order to duly perfect the Secured Party's interests
in the Intellectual Property Collateral and/or to notify interested third
parties of the Secured Party's interests therein, the Debtor shall
contemporaneously herewith duly execute and deliver to the Secured Party, and
the Secured Party may file, with the U.S. Patent and Trademark Office (the
"PTO") or the U.S. Copyright Office (the "Copyright Office"), as appropriate,
and any appropriate state and local filing offices, a written collateral
assignment of security interest (in each case, a "Collateral Assignment") in
Patents, Marks or Copyrights owned by such Debtor, each to be in substantially
the form of Exhibits A, B and C, respectively, hereto. At such time or times as
any Debtor shall acquire or obtain any new Intellectual Property Collateral or
rights thereto, the Debtor shall promptly notify the Secured Party by delivering
to the Secured Party an amendment to the appropriate Schedule and to the
appropriate exhibit hereto, and shall promptly duly execute and deliver to the
Secured Party, and the Secured Party may file or record, if necessary, an
appropriate Collateral Assignment with the appropriate filing or recording
office, provided, however, Debtor shall not be required to deliver a Collateral
Assignment in any application for an intent-to-use a trademark or service mark.

         2.       General Provisions.

         Debtor hereby represents and warrants to and covenants with the Secured
Party as follows:

         2.1      Title to Security; First Lien.

         (a) The Intellectual Property Collateral listed on the Schedules (and
any amendments thereto) hereto constitute all material property rights of the
Debtor described in Sections 1.2(a) through (d) hereof to which the Debtor has
any right, title or interest or which are used in connection with the Debtor's
business and all of such Intellectual Property Collateral is, to the best of
Debtor's knowledge, valid and subsisting, unrevoked and uncancelled and none of
the foregoing has been adjudged unenforceable, in whole or in part and, all of
the Intellectual Property collateral is enforceable in accordance with its
terms. The Debtor is to the best of its knowledge the owner or is licensed to
use or practice under all trademarks, service marks, patents, trade secrets and
copyrights used in its business.

         (b) To the best of Debtor's knowledge, the Debtor is the true and
lawful sole and exclusive owner of the Intellectual Property Collateral,
including any Intellectual Property Collateral acquired or arising after the
date hereof, and the Intellectual Property Collateral is subject to no Lien,
including covenants by the Debtor not to sue third Persons, other than Permitted
Encumbrances and the provisions of Section 7 hereof and, except for the
foregoing, no financing statement, security agreement, assignment, license,
covenant not to sue, shop rights or other Lien instrument covering all or any
part of the Intellectual Property Collateral is on file in

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any public  office;  and the Debtor will not execute or authorize to be filed in
any public office any of the  foregoing  except in favor of the Secured Party or
with respect to a Permitted Encumbrance.

         (c) Upon (i) the giving of value to the Debtor by the Secured Party,
(ii) the filing of financing statements on form UCC-1 (or other comparable form)
in the appropriate filing offices, and (iv) upon the filing of any Assignments
in the appropriate filing offices, the Secured Party will obtain a valid,
enforceable first priority perfected Lien and security interest in the
Intellectual Property Collateral except to the extent of any Liens permitted
hereby.

         2.2 New Intellectual Property Collateral. Any Intellectual Property
Collateral acquired or developed by any of the Debtor's officers, directors,
stockholders or employees in the course of the Debtor's business shall be owned
of record by the Debtor and shall be automatically subject to Section 1 hereof.

         2.3 Chief Executive Office; Intellectual Property Collateral Locations.
The Debtor's chief executive office and the office where the Debtor keeps its
books and records relating to the Intellectual Property Collateral, is located
at the locations set forth on the Disclosure Schedule. The Debtor will not move
its chief executive office unless (i) it shall have given to the Secured Party
not less than thirty (30) days' prior written notice of its intention so to do,
clearly describing such new location and providing such other information in
connection therewith as the Secured Party may reasonably request and (ii) with
respect to such new location, it shall have taken all action satisfactory to the
Secured Party to maintain the security interest of the Secured Party in the
Intellectual Property Collateral to be granted hereby at all times fully
perfected and in full force and effect. The originals of all documents
evidencing the Intellectual Property Collateral and the only original records of
the Debtor relating thereto are and will continue to be kept at such locations
and/or at the offices of the Debtor.

         2.4 General Duties of the Debtor. The Debtor shall (i) prosecute
diligently any patent, trademark, service mark or copyright application material
to its business pending as of the date hereof or thereafter until the Secured
Obligations shall have been paid in full, (ii) make application at the federal
level on unpatented but patentable inventions and on trademarks, service marks
and copyrights, as Debtor in its reasonable discretion deems appropriate, (iii)
preserve and maintain all rights in the Patents, Marks, Trade Secrets,
Copyrights and Licenses, and (iv) fulfill its obligations under any and all
Licenses, except with the prior written consent of the Secured Party. Any
expenses incurred in connection with the foregoing shall be borne by the Debtor,
including, without limitation, any and all maintenance fees. Except in its
commercial reasonable judgment, the Debtor shall not discontinue the payment of
any maintenance fees without the prior written consent of the Secured Party.

         2.5 Filings and Consents. Debtor shall deliver to the Secured Party in
form and substance satisfactory to the Secured Party:

         (i) such instruments as Secured Party may reasonably request, for
filing by Secured Party, at its discretion, in the appropriate offices, as
specified in Section 1.3; and

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         (ii) evidence that all necessary consents, waivers and agreements have
been obtained from any other party to the Licenses to the granting of the Lien
in favor of the Secured Party in such Licenses.

         2.6 Recording and Filing. At all times, and at its sole cost and
expense, the Debtor shall provide appropriate documents to Secured Party to
enable Secured Party to cause appropriate assignments, confirmatory assignments
and financing and continuation statements to be recorded and filed and to be
kept recorded and filed in such manner and in such places, as may be required by
law in order to establish, preserve, perfect and protect the first Lien (subject
to the Permitted Encumbrances, if any) of the Secured Party in the Intellectual
Property Collateral (including, without limitation, any interests acquired after
the execution hereof) and the rights of the Secured Party thereunder. The
Secured Party may record or file as such a financing statement or statements, a
carbon, photographic or other reproduction of this Agreement. The Debtor shall
pay all such recording, filing or other taxes, fees and other charges associated
with recording and filing.

         2.7 Restrictions on Future Agreements. Debtor agrees that until the
Secured Obligations shall have been paid in full, the Debtor will not, without
the Secured Party's prior written consent, sell, assign, pledge, encumber or
otherwise transfer to any Person other than the Secured Party, any of the
Debtor's rights in its present or future Patents, Marks, Trade Secrets,
Copyrights or Licenses, or enter into any other agreement, including, without
limitation, a license agreement, which is inconsistent with the Debtor's
obligations under this Agreement, except (i) licenses by Debtor in the ordinary
course of business , (ii) so-called end-user, non-exclusive licenses granted to
the Debtor's customers in the ordinary course of its business, and (iii) Liens
in favor of the Secured Party pursuant hereto or in respect of the Permitted
Encumbrances or other Liens permitted hereby. Debtor further agrees that it will
not take any action, or permit any action to be taken by any affiliate of the
Debtor or any other Person subject to the Debtor's control, including, without
limitation, licensees, or fail to take any action, which would affect the
validity or enforcement of the rights transferred to the Secured Party under
this Agreement.

         2.8 Infringements. To the best of Debtor's knowledge, none of the
Intellectual Property Collateral infringes the superior rights of any Person
and, except as set forth on the Disclosure Schedule, there is no pending or
threatened claim, action, suit or proceeding against the Debtor with respect to
any alleged infringement by the Debtor's business or operations of any
trademark, service mark, patent, trade secret or copyright. Debtor agrees,
promptly upon learning thereof, to notify the Secured Party in writing of the
name and address of, and to furnish such pertinent information that may be
available with respect to, any Person who may be infringing or otherwise
violating any of the Debtor's rights in and to any Intellectual Property
Collateral in a manner which is materially adverse to the Debtor, or with
respect to any Person claiming that the Debtor's use or practice of any
Intellectual Property Collateral violates any property right of that Person.
Debtor further agrees, unless otherwise directed by the Secured Party,
diligently to prosecute and/or enjoin permanently any Person infringing any such
rights in a manner which is or may become materially adverse to the Debtor.
Debtor further agrees that it will not settle or compromise any dispute, claim,
suit or legal proceeding with regard to the same without the prior written
consent of the Secured Party.

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         2.9 Amendments; Etc. The Debtor shall not permit any documents,
instruments, chattel paper, guarantees and contracts constituting or evidencing
any Intellectual Property Collateral hereunder to be amended, modified or
changed in any way without the prior written consent of the Secured Party.

         2.10 Direction to Third Parties; Etc. Upon the occurrence of an Event
of Default, the Debtor agrees (i) to cause payments, if any, on account of the
Licenses to be made directly to a cash collateral account established by the
Secured Party and (ii) that the Secured Party may, at its option, directly
notify the obligors with respect to any Licenses to make any payments with
respect thereto as provided in the preceding clause. Without notice to or assent
by the Debtor, the Secured Party may apply any or all amounts therein, or
thereafter deposited in, any cash collateral account in the manner provided in
Section 8.7 hereof. The costs and expenses (including attorneys' fees) of
collection, whether incurred by the Debtor or the Secured Party, shall be borne
by the Debtor.

         2.11 Collection. Debtor shall endeavor to cause to be collected from
the obligor under any License, as and when due (including, without limitation,
amounts which are delinquent, such amounts to be collected in accordance with
generally accepted lawful collection procedures) amounts, if any, owing under or
on account of such License, and apply forthwith upon receipt thereof all such
amounts as are so collected to the outstanding balance under such License,
except that, prior to the occurrence of an Event of Default, the Debtor may
allow in the ordinary course of business adjustments to amounts, if any, owing
under its Licenses or an extension or renewal of the time or times of payment,
or settlement for less than the total unpaid balance, which the Debtor deems
appropriate in accordance with sound business judgment. The costs and expenses
(including, without limitation, attorneys' fees) of collection, whether incurred
by the Debtor or the Secured Party, shall be borne by the Debtor.

         2.12 Payments. Debtor shall pay or cause to be paid promptly when due
all taxes and other governmental levies, to whomever and whenever laid or
assessed, whether on this Agreement, or on or in respect of any of the
Intellectual Property Collateral, which if unpaid might by law become a Lien
upon any of the foregoing; provided, however, that, except to the extent
otherwise provided in any other Loan Document, any such tax, levy or claim need
not be paid if the validity or amount thereof shall currently be contested in
good faith by appropriate proceedings and if the Debtor shall have set aside on
its books appropriate reserves with respect thereto; and provided, further, that
the Debtor will pay all such taxes, levies or other governmental charges
forthwith upon the commencement of proceedings to foreclose any Lien which may
have attached as security therefor.

         2.13 Employees; Agents; Etc. Debtor has entered and will enter into
written agreements with each of its present and future employees, agents and
consultants which will enable it to comply with the covenants herein contained.

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         2.14 Further Assurances. Upon the Secured Party's request from time to
time, the Debtor will make, execute, endorse, acknowledge, file and/or deliver,
and file and record in the proper filing and recording places, if applicable,
all such instruments, including without limitation transfer endorsements, powers
of attorney, certificates, reports and other assurances, and take all such
action as the Secured Party or counsel for the Secured Party may reasonably deem
necessary or advisable to carry out the intent and purposes of this Agreement,
or for assuring and confirming to the Secured Party the Intellectual Property
Collateral and the priority of the Secured Party's Lien therein provided for
hereunder.

         3.       Special Provisions Concerning Marks and Licenses.

         3.1 Maintenance of Records. Debtor will keep and maintain or cause to
be kept or maintained at its own cost and expense satisfactory and complete
records of its Marks and Licenses, including, but not limited to, the originals
of all documentation with respect thereto, and the Debtor will make the same
available to the Secured Party for inspection, at the Debtor 's own cost and
expense, at any and all reasonable times upon reasonable prior notice. Debtor
shall, at its own cost and expense, deliver all tangible evidence of its Marks
and Licenses (including, without limitation, all Certificates of Registration
relating to Marks and all Licenses) and such books and records relating thereto
(including, in the case of Marks, file histories with regard to the prosecution
and registration of such Marks, to the extent within the possession or control
of the Debtor) to the Secured Party or to its representatives (copies of which
evidence and books and records may be retained by the Debtor) at any time upon
its demand. If the Secured Party so directs, each Debtor shall legend, in form
and manner reasonably satisfactory to the Secured Party, the Licenses, as well
as books, records and documents of the Debtor evidencing or pertaining to the
Licenses with an appropriate reference to the fact that the Licenses have been
assigned to the Secured Party and that the Secured Party has a security interest
therein. In furtherance of the foregoing, the Debtor hereby grants to the
Secured Party or the Secured Party's designee the right to visit upon reasonable
prior notice during normal business hours any or all of the Debtor's places of
business which manufacture, sell, inspect or store goods sold or services
rendered (or which have done so during the prior six month period) under any
Mark, and to inspect the services and goods and control records relating
thereto. Secured Party shall conduct such inspections in a manner that is not
unreasonably disruptive to Debtor's business and operations, and will obey any
safety or work rules of Debtor while on its premises.

         3.2 Standards of Quality. Debtor has, and will continue to use for the
duration of this Agreement, consistent standards of quality in its manufacture
of goods sold under the Marks. The Debtor has heretofore controlled, and will
hereafter continue to control, the nature and quality of the goods and services
in respect of which any Mark is used by any Person.

         3.3 Preservation of Marks. Debtor has used and agrees to use, and to
cause licensees to use, proper statutory notice in connection with the use of
the Marks. Except as the same may be discontinued in the ordinary course of
business, the Debtor further agrees to use its Marks in interstate commerce
during the time in which this Agreement is in effect sufficiently to preserve
such Marks as trademarks or service marks registered under the laws of the
United States.

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         3.4 Maintenance of Applications and Registrations. Debtor shall, at its
own expense, diligently process all documents required by the Trademark Act of
1946, 15 U.S.C. ss.ss. 1051 et seq., as amended, to maintain its trademark and
service mark registrations which are material to its business and its pending
applications with respect thereto, including, but not limited to, statements and
affidavits of use and applications for renewals of registration, and shall pay
all fees and disbursements in connection therewith, and shall not abandon any
pending application or existing registration which is material to its business
prior to the exhaustion of all administrative and judicial remedies, without the
prior written consent of the Secured Party. Debtor agrees to notify the Secured
Party six (6) months prior to the dates on which any affidavits of use or
applications for renewal of registration are due that the affidavit or
application is being processed.

         4. Special Provisions Concerning Patents.

         4.1 Maintenance of Applications and Patents. Debtor shall not abandon
any right to file a patent application nor shall the Debtor abandon any pending
patent application, Patent, or any right with respect to the foregoing which in
each case is material to its business, prior to exhaustion of all administrative
and judicial remedies, without the prior written consent of the Secured Party.
At its own expense, the Debtor shall make timely payment of all post-issuance
fees required to maintain in force rights under each Patent.

         4.2 Scope of Patents. To the best of Debtor's knowledge and belief,
except as noted in Schedule 1.2(a), each patent owned or licensed by the Debtor
is broad enough in scope to preclude substantial competition with the product or
good covered thereby.

         5. Special Provisions Concerning Trade Secrets.

         5.1 Maintenance. Each Trade Secret of the Debtor which is legally
protectable as a trade secret has been preserved as "secret" and suitable
security precautions have been taken with respect to each such Trade Secret,
including confidentiality and noncompetition agreements with its employees,
agents, officers and directors. Upon request, the Debtor shall give the Secured
Party copies of any such agreements.

         6. Special Provisions Concerning Copyrights.

         6.1 Maintenance of Applications and Copyrights. Debtor shall not
abandon any right to file a copyright application that the Debtor in its
reasonable discretion deems appropriate, nor shall Debtor abandon any pending
copyright application, Copyright, or any right with respect to the foregoing,
prior to exhaustion of all administrative and judicial remedies, without the
prior written consent of the Secured Party.

         7. Grant-Back License.

         7.1 License. Unless and until there shall exist an Event of Default and
the Secured Party has given notice to the Debtor of the Secured Party's
intention to exercise its rights under

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this Agreement, the Secured Party hereby grants to the Debtor, without
representation or warranty by the Secured Party, the exclusive, nontransferable
(except by sublicense in the ordinary course of Debtor's business) right and
license to use all Intellectual Property Collateral, and in particular: (i) to
use the Marks on and in connection with goods and services sold by the Debtor,
or its franchises, for the Debtor's own benefit and account and for none other,
(ii) under the Patents, to make, have made for it, use and sell the inventions
disclosed and claimed in the Patents for the Debtor's own benefit and account
and for none other, (iii) to collect any and all royalties under any sublicenses
granted by the Debtor, (iv) to prosecute any and all applications and maintain
any and all registrations for Copyrights, Marks and Patents, (v) to preserve and
protect the Copyrights, Patents and Marks against infringement by third parties
in the Debtor's reasonable commercial judgment, and (vi) to settle all disputes
with third parties with respect to use or non-use of the Copyrights, Patents and
Marks. The Debtor agrees not to sell or assign its interest in, or grant any
sublicense (except in the ordinary course of business) under the license granted
to the Debtor in this Section, without the prior written consent of the Secured
Party.

         7.2 Royalties. Debtor hereby agrees that the use by the Secured Party
of any and all Intellectual Property Collateral shall, subject to applicable law
and to any then existing Licenses granted by the Debtor of any such Patent,
Mark, Trade Secret or Copyright, be without any liability for royalties or other
related charges from the Secured Party to Debtor.

         8. Rights and Remedies of Secured Party.

         8.1 Rights Exercisable Regardless of Event of Default. Whether or not
an Event of Default exists, the Secured Party shall have the following rights:

         (a) The Secured Party is hereby specifically authorized to make, at the
Secured Party's sole option, any or all payments required to be made either
hereunder or otherwise in respect of the Intellectual Property Collateral by
Debtor, unless Debtor has intentionally abandoned such Intellectual Property
Collateral in its reasonable commercial judgment in the ordinary course of
business. Such payments may include, but are not limited to, payments for
maintenance fees, taxes, and other governmental levies, and insurance premiums.
The Secured Party shall have the right, but not the duty, to perform any
obligations of the Debtor relating to the Intellectual Property Collateral,
without waiving any other rights or releasing Debtor from any obligation
hereunder.

         (b) The Secured Party shall have the right, but not the duty, to
intervene or otherwise participate in any legal or equitable proceeding which,
in the Secured Party's sole judgment, affects the Intellectual Property
Collateral or any of the rights created or secured by this Agreement, provided
that the Debtor has the right to settle or compromise any suit, claim or action
without the consent of Secured Party if, in the reasonable commercial judgment
of Debtor, such settlement or compromise is in the best interest of Debtor.

Such rights may be exercised by the Secured Party at any time, but only after
seven (7) days notice to the Debtor, and only to the extent permitted by law and
necessary to protect the Secured Party's rights hereunder and in the
Intellectual Property Collateral.

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         8.2 Power of Attorney. After an Event of Default, in order to permit
the Secured Party to operate the Debtor's business without interruption and to
use the Marks and associated goodwill in conjunction therewith and other
Intellectual Property Collateral, and otherwise to effectuate the intent of the
parties hereto, the Debtor hereby appoints the Secured Party the true and lawful
attorney-in-fact for the Debtor with full power of substitution, in its name or
in the name of the Debtor or otherwise, for the sole benefit of the Secured
Party but at the sole expense of the Debtor, without notice to or demand upon
the Debtor, at any time whether or not an Event of Default has occurred, (i) to
notify any party, and to demand, collect, receive payment of, receipt for,
settle, compromise or adjust and give discharges and releases with respect to,
any Intellectual Property Collateral; (ii) to commence and prosecute any suits,
actions or proceedings at law or in equity in any court of competent
jurisdiction to collect any monies due to the Debtor and to enforce any rights
pursuant to any Intellectual Property Collateral or any other rights in respect
thereof including suits for infringement; (iii) to defend any suit, action, or
proceeding brought against the Debtor in respect of any Intellectual Property
Collateral; (iv) to settle, compromise or adjust any suit, action or proceeding
described in clauses (ii) or (iii) above and, in connection therewith, to give
such discharges, terminations or releases as the Secured Party may deem
appropriate; (v) to endorse the name of the Debtor on checks, notes, drafts,
acceptances, money orders, or other instruments or documents constituting
payments on account of any Intellectual Property Collateral; (vi) to sign and
file or record the foregoing described Assignments or any financing or other
statement in order to perfect or protect the Secured Party's security interest
in the Intellectual Property Collateral; (vii) to prosecute any applications,
renewals and other matters in connection with any of the Intellectual Property
Collateral and to sign the name of the Debtor on any and all agreements,
documents, statements, certificates or other writings necessary or advisable to
effect such purposes; (viii) generally to sell, assign, transfer, pledge, make
any agreement in respect of or otherwise deal with any Intellectual Property
Collateral, including any new Intellectual Property Collateral, as fully and
completely as though the Secured Party were the absolute owner thereof for all
purposes. The powers vested in the Secured Party are, and shall be deemed to be,
coupled with an interest and irrevocable. The powers conferred on the Secured
Party by this Agreement are solely to protect the Secured Party's interest and
shall not impose upon the Secured Party any duty to exercise any such power, and
if the Secured Party shall exercise any such power, the Secured Party shall be
accountable only for amounts that the Secured Party actually receives as a
result thereof and shall not be responsible to the Debtor except for any failure
to comply with the requirements of applicable law.

         8.3 Effect of Exercise of Rights. Any sums paid, and any costs or
expenses, including reasonable attorneys' fees, incurred by the Secured Party,
pursuant to the Secured Party's exercise of rights specified or referred to
herein, shall: (a) as between the parties hereto and their
successors-in-interest, be deemed valid, so that in no event shall the necessity
or validity of any such payments, costs or expenses be disputed; and (b) with
respect to such sums, costs and expenses, be, until paid, part of the Secured
Debt and, until paid, shall accrue interest at the Default Rate.

                                       10
<PAGE>

         8.4 Remedies. Upon the occurrence of any Event of Default, the Secured
Party may at any time thereafter, at its option and, upon seven (7) days written
notice, exercise any or all of the following rights and remedies:

         (a) terminate the license granted to the Debtor pursuant to Section 7
hereof;

         (b) collect, receive, appropriate and realize upon the Intellectual
Property Collateral or any part thereof;

         (c) exercise any or all of the rights and remedies granted to it under
this Agreement or any other Loan Document and take such other actions or
proceedings as the Secured Party deems necessary or advisable to collect or
enforce or to protect its interest in the Secured Debt or the Intellectual
Property Collateral;

         (d) enter, with or without process of law and without breach of the
peace, any premises where the Intellectual Property Collateral or the books and
records of the Debtor related thereto are or may be located, and without charge
or liability to the Secured Party therefor seize and remove any tangible
personal property evidencing the Intellectual Property Collateral (and copies of
said Debtor's books and records in any way relating to the Intellectual Property
Collateral) from said premises and/or remain upon said premises and use the same
(together with said books and records) for the purpose of collecting, preparing
for sale and disposing of the Intellectual Property Collateral;

         (e) exercise any one or more of the rights and remedies accruing to the
Secured Party under any applicable law, or as provided herein or in the Loan
Documents. The Debtor recognizes that in the event it fails to perform, observe
or discharge any of its obligations or liabilities under this Agreement, no
remedy at law will provide adequate relief to the Secured Party, and the Debtor
agrees that the Secured Party shall be entitled to temporary and permanent
injunctive relief in any such case without the necessity of proving actual
damages; and

         (f) exercise any and all of the rights and remedies of a secured party
under the Uniform Commercial Code or comparable statute in the applicable
jurisdiction, including, without limitation, the right to exercise all of the
following rights and remedies in a commercially reasonable manner:

                  (i)      declare the entire right, title and interest of the
                           Debtor in and to each of the Marks, together with all
                           trademark rights and rights of protection to the
                           same, vested, in which event such rights, title and
                           interest shall immediately vest, in the Secured
                           Party;

                  (ii)     declare the entire right, title and interest of the
                           Debtor in and to each of the Patents and Copyrights
                           vested, in which event such right, title and interest
                           shall immediately vest in the Secured Party;

                                       11
<PAGE>

                  (iii)    to take and practice or use all or any portion of the
                           Intellectual Property Collateral;

                  (iv)     to sell, license, or otherwise dispose of any or all
                           of the Intellectual Property Collateral, including
                           the goodwill of the Debtor's business symbolized by
                           the Marks and the right to carry on the business and
                           use the assets of the Debtor in connection with which
                           the Marks have been used;

                  (v)      to apply the proceeds of the Intellectual Property
                           Collateral towards (but not necessarily in complete
                           satisfaction of) the Secured Obligations; and/or

                  (vi)     to direct the Debtor to refrain from practicing or
                           using the Intellectual Property Collateral in any
                           manner whatsoever, directly or indirectly, and, if
                           requested by the Secured Party, change the Debtor's
                           corporate name to eliminate therefrom any use of any
                           Mark, as applicable, and execute such other and
                           further documents that the Secured Party may request
                           to further confirm this and to transfer ownership of
                           the Intellectual Property Collateral and any
                           associated goodwill to the Secured Party.

         Any sale or other disposition of the Intellectual Property Collateral
may be at public or private sale upon such terms and in such manner as the
Secured Party deems advisable, having due regard to compliance with any statute
or regulation which might affect, limit, or apply to the Secured Party's
disposition of the Intellectual Property Collateral. The Secured Party shall
give the Debtor notice as required by applicable law of the date, time, and
place of any proposed public sale of, and of the date after which any private
sale or other disposition, of the Intellectual Property Collateral, or any
portion thereof, is to be made.

         Such options may be exercised individually, sequentially or in concert,
all such remedies being cumulative, the exercise of one not being deemed a
waiver of any other or a cure of any Event of Default. An Event of Default shall
not be deemed to be in existence or to be continuing for any purpose of this
Agreement if the Secured Party pursuant to this Agreement shall have waived such
event in writing or stated in writing that the same has been cured to its
reasonable satisfaction, but no such waiver shall extend to or affect any
subsequent Event of Default or impair any rights of the Secured Party upon the
occurrence thereof.

         8.5 Waivers and Enforcement of Rights. The failure of the Secured Party
to exercise any right or remedy or option provided for herein or otherwise shall
not be deemed to be a waiver of any of the covenants or obligations secured by
this Agreement or otherwise. No sale of all or any of the Intellectual Property
Collateral, no forbearance on the part of the Secured Party, no release or
partial release of any of the Intellectual Property Collateral, and no
extension, whether oral or in writing, of the time for the payment of the whole
or any part of the Secured Debt or any other indulgence given by the Secured
Party to the Debtor or any other Person, shall operate to

                                       12
<PAGE>

release or in any manner affect the Lien of the Agreement or the original
liability of the Debtor. A waiver by the Secured Party on any one occasion shall
not be construed as a bar to or waiver of any right or remedy on any future
occasion. No waiver or consent shall be binding upon the Secured Party unless it
is in writing and signed by the Secured Party. Debtor waives any requirement of
diligence or promptness on the Secured Party's part in the enforcement of its
rights under the provisions of this Agreement or any Loan Document. To the
fullest extent the Debtor may do so, the Debtor agrees that it will not at any
time insist upon, plead, claim or take the benefit or advantage of any law now
or hereafter in force providing for any appraisement, valuation, stay, extension
or redemption, and the Debtor, to the extent permitted by law, hereby waives and
releases all rights of redemption, valuation, appraisement, stay of execution,
notice of election to mature or declare due the whole of the Secured Obligations
and marshalling in the event of foreclosure of the Liens hereby created. The
Secured Party shall not be required to marshal the Intellectual Property
Collateral, or any other Security in any particular order. The Debtor hereby
covenants and agrees that it will not enforce or otherwise exercise any rights
of reimbursement, subrogation, contribution or other similar rights against any
co-obligor or any other Person obligated on or with respect to any Secured
Obligations or granting any Security prior to the payment in full of the Secured
Obligations. If any law referred to in this Section and now in force, of which
the Debtor or its representatives, successors and assigns or other Person may
take advantage despite this Section, shall hereafter be repealed or cease to be
in force, such law shall not thereafter be deemed to preclude the application of
this Section. To the extent permitted by law and except as otherwise provided in
this Agreement and the other Loan Documents, the Debtor expressly waives and
relinquishes any and all rights and remedies which it may have or be able to
assert by reason of the laws of the State of New Hampshire pertaining to the
rights and remedies of sureties. With respect to any or all of the Secured
Obligations and Intellectual Property Collateral, the Debtor assents to any
extension or postponement of the time of payment or any other indulgence, to any
substitution, exchange or release the Intellectual Property Collateral, to the
addition or release of any Person primarily or secondarily liable, to the
acceptance of partial payments thereon and the settlement, compromising or
adjusting thereof, all at such time or times as the Secured Party may deem
advisable, and the Debtor agrees that the Secured Party may so act without
regard to any requests or demands by the Debtor and without thereby incurring
any liability to the Debtor or releasing the Debtor hereunder.

         8.6 Duty to Intellectual Property Collateral. Anything herein contained
to the contrary notwithstanding, neither the Secured Party nor any nominee or
assignee shall have any obligation or liability by reason of or arising out of
this Agreement to make any inquiry as to the nature or sufficiency of, to
present or file any claim with respect to, or to take any action to collect or
enforce the payment of, any amounts to which it may be entitled at any time or
times by virtue of this Agreement, except to extent otherwise required by
applicable law. The Secured Party makes no representations or warranties with
respect to the Intellectual Property Collateral or any part thereof, and shall
not be chargeable with any obligations or liabilities of the Debtor or any other
Person with respect thereto.

         8.7 Application of Proceeds. The proceeds of all collections and any
other moneys (including any cash contained in the Intellectual Property
Collateral), the application of which is not otherwise herein or in any other
Loan Document provided for, shall be applied as follows:

                                       13
<PAGE>

                   First, to the payment of the costs and expenses of
         collection, sale or other disposition of the Intellectual Property
         Collateral, including the reasonable compensation of the Secured Party
         and its counsel, and all other charges against the Intellectual
         Property Collateral;

                   Second, any surplus then remaining to the payment of the
         Secured Obligations secured by such Intellectual Property Collateral in
         such order and manner as the Secured Party in its sole discretion may
         determine; and

                   Third, any surplus then remaining shall be paid to the
         Debtor, subject, however, to the rights of the holders of any then
         existing Lien or as otherwise required by law.

         9. Definitions.

         9.1 Unless otherwise defined herein, terms used herein shall have the
meanings set forth in the Security Agreement or in the Credit Agreement. For
purposes of this Agreement, the following terms defined elsewhere in this
Agreement and as set forth below shall have the respective meanings therein and
herein defined:

         Term                                             Definition

         "Agreement"                                      Preamble
         "Collateral Assignment"                          Section 1.3
         "Copyright Office"                               Section 1.3
         "Copyrights"                                     Section 1.2 (d)
         "Debtor"                                         Preamable
         "Intellectual Property Collateral"               Section 1.2
         "Licenses"                                       Section 1.2 (e)
         "Loan Document"                                  Section 10.10
         "Marks"                                          Section 1.2 (b)
         "Patents"                                        Section 1.2 (a)
         "PTO"                                            Section 1.3
         "Secured Party"                                  Preamble
         "Security Agreement"                             Preamble
         "Trade Secrets"                                  Section 1.2 (c)

         9.2 "Secured Obligations" as used herein shall mean the Obligations of
the Debtor under the Credit Agreement.

         10. General.

         10.1 Fees and Expenses. Any and all fees, costs and expenses, of
whatever kind or nature, including the reasonable attorney's fees and legal
expenses incurred by the Secured Party

                                       14
<PAGE>

in connection with the preparation of this Agreement and all other documents
relating hereto and the consummation of the transactions contemplated hereby,
the filing or recording of any documents (including all taxes in connection
therewith) in public offices, the payment or discharge of any taxes, counsel
fees, maintenance fees, encumbrances or otherwise protecting, maintaining or
preserving the Intellectual Property Collateral, or in defending or prosecuting
any actions or proceedings arising out of or related to the foregoing, shall be
borne and paid by the Debtor on demand by the Secured Party.

         10.2 Defeasance. When all Secured Obligations have been indefeasibly
paid and performed in full and no further obligation on the part of the Secured
Party or the Debtor shall exist, this Agreement shall cease and terminate, and,
at the Debtor's written request, accompanied by such certificates, opinions and
proof as the Secured Party shall reasonably deem necessary, the Intellectual
Property Collateral furnished hereunder shall revert to the Debtor and the
estate, rights, title, and interest of the Secured Party therein shall cease,
and thereupon on the Debtor's written request and at its cost and expense, the
Secured Party shall execute proper instruments, acknowledging satisfaction of
and discharging this Agreement, and shall redeliver to the Debtor the
Intellectual Property Collateral furnished hereunder then in its possession;
subject, however, to the terms and provisions contained in Section 10.3 hereof.

         10.3 Survival. All covenants, agreements, representations and
warranties made herein or in any other Loan Document and in certificates
delivered pursuant hereto or thereto shall be deemed to have been material and
relied upon by the Secured Party, notwithstanding any investigation made by the
Secured Party or on the Secured Party's behalf, and shall survive the execution
and delivery to the Secured Party hereof and thereof. Each such covenant,
agreement, representation and warranty is hereby confirmed by the Debtor to be
true and correct in all respects with the same force and effect on and as of the
date of delivery of any Intellectual Property Collateral to the Secured Party as
though made as of the date of such delivery.

         10.4 Amendments. This Agreement may not be waived, changed or
discharged orally, but only by an agreement in writing and signed by the Secured
Party, and any oral waiver, change or discharge of any provision of this
Agreement shall be without authority and of no force and effect.

         10.5 Successors and Assigns. The covenants, representations, warranties
and agreements herein set forth shall be binding upon the Debtor, its successors
and assigns and shall inure to the benefit of the Secured Party, its successors
and assigns. Any purchaser, assignee or transferee of any of the Secured
Obligations and the Secured Party's security interest hereunder shall forthwith
become vested with and entitled to exercise all the powers and rights given by
this Agreement and the other Loan Documents to the Secured Party, as if said
purchaser, assignee, transferee or pledges were originally named herein.

         10.6 Entire Agreement: Separability; Governing Law. This Agreement, any
Schedules or Exhibits hereto and any riders or other attachments, and the other
Loan Documents constitute the entire agreement between the parties with respect
to the subject matter hereof. If at any time one or more provisions of this
Agreement or any Loan Document, any amendment or supplement

                                       15
<PAGE>

thereto or any related writing is or becomes invalid, illegal or unenforceable
in whole or in part in any jurisdiction, the validity, legality and
enforceability of such provision in any other jurisdiction or of the remaining
provisions shall not in any way be affected or impaired thereby. This Agreement
shall be governed by the laws of the State of New Hampshire without regard to
its conflict of laws provisions.

         10.7 Counterparts. This Agreement may be executed in as many
counterparts as may be deemed necessary and convenient, and by the different
parties hereto on separate counterparts, each of which when so executed shall be
deemed an original, but all such counterparts shall constitute one and the same
instrument.

         10.8 Singular or Plural; Joint or Several. The term "Debtor," together
with any pronoun referring thereto, shall include the singular, plural,
masculine, feminine and neuter, as the context may require; and if more than one
Person constitutes the Debtor, the obligations of such Persons shall be joint
and several.

         10.9 Headings. The headings to Sections appearing in this Agreement and
in any Loan Document have been inserted for the purpose of convenience and ready
reference. They do not purport to, and shall not be deemed to, define, limit or
extend the scope or intent of the Sections to which they appertain.

         10.10 Loan Document. This Agreement shall constitute a "Loan Document"
as defined in the Credit Agreement. The terms and provisions of this Agreement
are intended to supplement the terms and provisions of the security portions of
the Security Agreement and are not intended to limit the force or effect of such
provisions.

                                       16
<PAGE>

         IN WITNESS WHEREOF, this instrument has been executed under seal as of
the day and year first above written.

                                     DEBTOR
                                     LASERTEL INC.

/s/ James F. Scafidi                By: /s/ Moosa E. Moosa
--------------------------              ------------------------------
Witness                                 Moosa E. Moosa, Vice President - Finance

STATE OF NEW HAMPSHIRE
COUNTY OF HILLSBOROUGH

         The foregoing instrument was acknowledged before me this 15th day of
October, 2003, by Moosa E. Moosa, for, on behalf of, and as Vice President -
Finance of, Lasertel Inc. on behalf of the corporation.

                                       /s/ Connie L. Rakowsky
                                       ----------------------------------
                                       Justice of the Peace/Notary Public
                                       My Commission Expires: 1/6/04

                                       17EXHIBIT 10.13
                                                                   -------------
                         MORTGAGE AND SECURITY AGREEMENT
                         -------------------------------

         KNOW ALL MEN BY THESE PRESENTS that PRESSTEK, INC., a Delaware
corporation having its principal office at 55 Executive Drive, Hudson, New
Hampshire 03051 (hereinafter collectively with its successors, legal
representatives, and assigns referred to as "Mortgagor") for consideration paid
by CITIZENS BANK NEW HAMPSHIRE, a New Hampshire guaranty savings bank having an
office at 875 Elm Street, Manchester, New Hampshire 03101 (hereinafter
collectively with its successors, legal representatives, assigns and
participants, if any, referred to as "Mortgagee"), for itself and acting as
agent for the Lenders under the terms of that certain Credit Agreement dated as
of even date herewith (as it may be amended from time to time, the "Credit
Agreement"), by and among the Debtor, Lasertel Inc., as Guarantor, the
Mortgagee, as Agent and Lender, and the banks that are parties thereto as
Lenders from time to time (the "Lenders"), the receipt and sufficiency of which
Mortgagor does hereby acknowledge, hereby grants, bargains, sells, conveys and
assigns to Mortgagee, with MORTGAGE COVENANTS:

         The premises located in Hudson, County of Hillsborough, New Hampshire,
as more particularly described in Schedule A attached hereto and made a part
hereof, together with all buildings, structures, replacements, and other
improvements now or hereafter situated thereon, together with all rents, issues,
profits, privileges, easements, rights of way, licenses, appurtenances, and
other appurtenant rights thereto; all right, title and interest of Mortgagor in
and to the land lying within any street or roadway adjoining the subject
property; all right, title and interest of Mortgagor in and to any vacated or
hereafter vacated streets or roads adjoining the subject property; and all
right, title and interest of Mortgagor in and to all air and riparian rights
associated with, belonging to or inuring to the benefit of the subject property
(all of the foregoing collectively, the "Premises");

         AND transfers, assigns, sets over and grants a first priority security
interest in the following (collectively, the "Personal Property");

         (1) All fixtures, machinery and all other tangible personal property
used in the buildings and other improvements on the Premises, now or hereafter
owned by the Mortgagor and now affixed or to be affixed to, or now or hereafter
located upon, the Premises, including all appurtenant easements. The foregoing
shall include, without limitation, all machinery, plant, plumbing, heating,
lighting, refrigerating, ventilating and air conditioning apparatus and
equipment, elevators and elevator machinery, boilers, tanks, motors, sprinkler
and fire extinguishing systems, alarm systems, screens, awnings, screen doors,
storm and other detachable windows and doors, perennial flowers, signage, and
other equipment, machinery, furniture and furnishings, fixtures, and articles of
personal property now and hereafter owned by
<PAGE>

the Mortgagor and now and hereafter affixed to, placed upon or used in
connection with the operation of the Premises, and all other purposes whether or
not included in the foregoing enumeration, together with cash proceeds and
non-cash proceeds of all of the foregoing, all of which are covered by this
Mortgage, whether or not such property is subject to prior conditional sales
agreements, chattel mortgages or other liens, excepting inventory and personal
property to be consumed or sold in the normal course of business of the
Mortgagor. If the lien hereof on any fixtures or personal property is subject to
a conditional sales agreement or chattel mortgage or security agreement covering
such property, then upon the occurrence of an Event of Default hereunder all the
rights, title and interest of the Mortgagor in and to any and all deposits made
thereon or therefor are hereby assigned to the Mortgagee, together with the
benefit of any payments now or hereafter made thereon. There are also
transferred, set over and assigned to the Mortgagee, its successors and assigns,
all conditional sales agreements, leases, and use agreements of machinery,
equipment and other personal property of the Mortgagor in the categories
hereinabove set forth and now and hereafter affixed to, placed upon or used in
connection with the operation of the Premises under which the Mortgagor is the
owner, lessee, or licensee of, and the Mortgagor agrees to execute and deliver
to the Mortgagee specific separate assignments thereof to the Mortgagee of such
leases and agreements when requested by the Mortgagee; and nothing herein shall
obligate the Mortgagee to perform any obligations of the Mortgagor under such
leases or agreements, unless it so chooses, which obligations the Mortgagor
hereby covenants and agrees to well and punctually perform;

         (2) All of the Mortgagor's right, title and interest in and to any
governmental approvals, licenses, franchises, permits, grants, etc. with respect
to the Premises, including, but not limited to, all approvals, licenses, and
permits for the use and occupancy of the Premises, to the extent permitted by
law;

         (3) All eminent domain awards made and insurance proceeds paid with
respect to the Premises;

         (4) All books, records, contracts, management contracts, and other
general intangibles relating to Mortgagor's operation of the Premises;

         (5) All plans, specifications, contracts, warranties and survey plans
relating to the construction, use or occupancy of the Premises;

         (6) Any and all additions, accessions, substitutions or replacements to
or for any of the foregoing;

         (7) Any and all products and proceeds of any or all of the foregoing,
including, without limitation, cash and cash equivalents, tax refunds and the
proceeds, including interest, of insurance policies providing coverage against
the loss or destruction of or damage to any of such collateral;

         (8) All of the Mortgagor's after-acquired property of the kinds and
types described in the foregoing paragraphs;

                                      -2-
<PAGE>

         (9) All rents, instruments, security deposits, issues and profits,
revenues, royalties, bonuses, rights and benefits under any and all leases or
tenancies now existing or hereafter created with respect to the Premises or any
part thereof; and

         (10) All judgments, awards of damages, insurance proceeds and
settlements hereafter made as a result or in lieu of any taking of the Premises
or any interest therein or part thereof under the power of eminent domain or for
any damage or casualty (whether caused by such taking or otherwise) to the
Premises or any part thereof, including any award for change of grade of
streets;

(collectively, the Premises and the Personal Property are hereinafter sometimes
referred to as the "Mortgaged Property");

         FOR THE PURPOSE OF SECURING the following obligations of Mortgagor to
Mortgagee and the Lenders:

         (1) Payment of (a) the principal sum of THIRTY-FIVE MILLION AND 00/100
DOLLARS ($35,000,000.00) under a certain revolving line of credit loan (the
"Revolving Line of Credit Loans"), or so much thereof as may be advanced and
readvanced from time to time pursuant and subject to the terms and conditions of
the Credit Agreement; and (b) the principal sum of FIFTEEN MILLION AND 00/100
DOLLARS ($15,000,000.00) under a certain term loan (the "Term Loans" and,
collectively with the Revolving Line of Credit Loan, the "Loans"), or so much
thereof as may be advanced pursuant and subject to the terms and conditions of
the Credit Agreement; together with interest and other charges thereon as
provided in the Mortgagor's promissory notes of even date evidencing such Loans
(such notes, together with any subsequent extensions, renewals, modifications,
substitutions or replacements thereof, are collectively hereinafter referred to
as the "Notes");

         (2) Payment of such sums expended or advanced by Mortgagee in
accordance herewith to protect the security, priority or validity of this
Mortgage; and

         (3) Due, prompt and complete observance, performance, fulfillment and
discharge by Mortgagor of each and every obligation, covenant, condition,
warranty, agreement and representation contained in the Notes, this Mortgage,
the Credit Agreement, Mortgagor's assignment of leases and rents respecting the
Premises, and any other document, instrument or agreement given by Mortgagor as
additional security for the payment of the indebtedness hereby secured, or
otherwise executed in connection therewith (all of the foregoing, together with
any extensions, renewals, modifications, amendments, substitutions or
replacements thereof, are hereinafter collectively referred to as the "Loans
Documents").

         PROVIDED, NEVERTHELESS, that this Mortgage is granted upon the express
condition, that if the Mortgagor pays to the Mortgagee and Lenders all amounts
due under the Notes, this Mortgage and the other Loans Documents, then this
Mortgage shall be void. Otherwise it shall remain in full force and effect.

                                      -3-
<PAGE>

         1. Representations, Warranties, and Covenants of the Mortgagor. In
addition to the MORTGAGE COVENANTS, the Mortgagor represents, warrants,
covenants, and agrees with the Mortgagee and Lenders as follows:

         (a) Power and Authority. The Mortgagor has full power, authority, and
legal right to execute and deliver the Mortgage and the other Loans Documents
and to consummate the transactions contemplated herein without the consent or
approval of any third party, court or governmental body or other third party;
and, the execution and delivery of the Mortgage and the other Loans Documents
and the consummation of the transactions contemplated herein will not conflict
with or result in a breach of the terms of any agreement or law or order of any
court or governmental body;

         (b) Title. Upon the recording hereof, Mortgagor is the lawful owner of
the Mortgaged Property seized and possessed thereof in its own right in fee
simple, has full power and lawful authority to grant and convey the same in
manner aforesaid; the Mortgaged Property is free and clear from any encumbrance
whatsoever, except for the exceptions identified in the Mortgagee's title
insurance commitment issued to and accepted by Mortgagee insuring this Mortgage
(the "Permitted Encumbrances"); Mortgagor shall warrant and defend the same to
the Mortgagee against the lawful claims and demands of any person or persons
whatsoever; Mortgagor will not cause or permit any lien to arise against the
Mortgaged Property which is superior to the lien or security interest granted
herein;

         (c) Payment and Performance. Mortgagor shall pay the Notes hereby
secured and interest thereon as the same shall become due and payable, and also
any other indebtedness that may accrue to the Mortgagee under the terms of this
Mortgage and the other Loans Documents, and shall perform all other covenants,
undertakings and agreements set forth herein and in the other Loans Documents;

         (d) Insurance. Mortgagor shall obtain and keep in force, with one or
more insurers acceptable to Mortgagee, such insurance as Mortgagee may from time
to time specify by notice to Mortgagor, including, as a minimum, insurance
providing (i) commercial general liability (including death or bodily injury and
property damage coverage) with a broad form coverage endorsement and a combined
single limit of at least Five Million Dollars ($5,000,000.00), and (ii)
protection against fire, "extended coverage" and other "All Risk" perils,
including, if specifically required by Mortgagee, flood, if in a flood hazard
area, with a full replacement cost endorsement (such cost to be subject to
annual review and increased if necessary so as to provide coverage at all times
in an amount necessary to restore the Mortgaged Premises to the condition
existing just prior to the destruction or damage) and a waiver of subrogation
endorsement. All fire and casualty insurance policies shall include the standard
mortgagee clause for the State of New Hampshire naming Mortgagee as the first
mortgagee with loss payable to Mortgagee as such mortgagee and all other
policies shall name Mortgagee as an additional insured. All insurance policies
shall not be cancelable or modifiable without thirty (30) days prior written
notice to Mortgagee and shall not have more than a Five Thousand Dollar
($5,000.00) deductible for any single Casualty. Mortgagor shall provide
Mortgagee with evidence of compliance with

                                      -4-
<PAGE>

this Paragraph, in such forms (including original policies and certificates) as
required from time to time by Mortgagee, upon notice from Mortgagee or in any
event at least fifteen (15) days prior to the expiration date of any policy
required hereunder, each bearing notations evidencing the prior payment of
premiums or accompanied by other evidence satisfactory to Mortgagee that such
payment shall be delivered by Mortgagor to Mortgagee.

         Mortgagor shall keep, observe and satisfy, and not suffer violations
of, the requirements of insurance companies and any bureau or agency which
establishes standards of insurability affecting the Mortgaged Property, and
pertaining to acts committed or conditions existing thereon.

         Upon foreclosure of this Mortgage or other transfer of title or
assignment of the Mortgaged Property in discharge, in whole or part, of the
indebtedness secured hereby, all right, title and interest of Mortgagor in and
to all policies of insurance required by this Paragraph shall inure to the
benefit of and pass to Mortgagee;

         (e) Taxes and Assessments. The Mortgagor will pay, before the same
become delinquent or any penalty attached thereto for nonpayment, all taxes,
condominium association assessments, and other assessments and charges of every
nature that may now or hereafter be levied or assessed, upon the Premises or any
part thereof, or upon the rents, issues, income or profits thereof, whether any
or all of said taxes, assessments or charges be levied directly or indirectly,
and will pay, before the same become delinquent or any penalty attached thereto
for the nonpayment, all taxes which by reason of nonpayment create a lien prior
to the lien of the Mortgage; and will thereupon submit to the Mortgagee such
evidence of the due and punctual payment of such taxes, etc. as the Mortgagee
may require;

         (f) Maintenance of the Premises. The Personal Property is in good
working order and condition, and to the best of Mortgagor's knowledge, the
Premises are free from structural defects. The Mortgagor will keep the Mortgaged
Property protected in good order, repair and condition (reasonable wear and tear
and casualty insured against excepted) at all times, promptly replacing any part
thereof which may become lost, destroyed or unsuitable for use; and will not
commit or suffer any strip or waste of the Mortgaged Property, or any violation
of any law, regulation, ordinance or contract affecting the Mortgaged Property,
will not commit or suffer any demolition, removal or material alteration of the
Mortgaged Property without the written consent of the Mortgagee. Mortgagor will
afford the Mortgagee the opportunity to inspect the Mortgaged Property at any
time upon reasonable prior notice; and Mortgagor, its officers, agents, and
representatives shall fully cooperate with Mortgagee, its agents, and
representatives in conducting such inspection. The Mortgagor shall maintain and
preserve the parking areas, passageways and drives, now or hereafter existing on
the Premises, and, without prior written consent of the Mortgagee, which shall
not be unreasonably withheld, no building or other structure other than those
currently in existence on the Premises shall be erected thereon and no additions
to existing buildings shall be erected, except as contemplated by the Credit
Agreement, without the prior written consent of the Mortgagee;

                                      -5-
<PAGE>

         (g) Real Estate Tax and Insurance Escrow. The Mortgagor shall, upon
request therefor by the Mortgagee, which request may be withdrawn and remade
from time to time at the discretion of the Mortgagee, pay to the Mortgagee on a
monthly basis as hereafter set forth a sum equal to the municipal and other
governmental real estate taxes, personal property taxes, other assessments next
due on the Mortgaged Property and all premiums next due for fire and other
casualty insurance required of the Mortgagor hereunder, less all sums already
paid therefor, divided by the number of months to lapse not less than one (1)
month prior to the date when said taxes and assessments will become delinquent
and when such premiums will become due, provided such request shall only be made
following the occurrence of an Event of Default hereunder. Such sums as
estimated by the Mortgagee shall be paid with monthly payments of principal
and/or interest due pursuant to the terms of the Notes and such sums shall be
held by the Mortgagee to pay said taxes, assessments and premiums before the
same become delinquent. The Mortgagor agrees that should there be insufficient
funds so deposited with the Mortgagee for said taxes, assessments and premiums
when due, it will upon demand by the Mortgagee promptly pay to the Mortgagee
amounts necessary to make such payments in full; any surplus funds may be
applied toward the payment of principal and/or interest on the Notes (such
payment shall not be subject to any prepayment penalty or premium) or credited
toward future such taxes, assessments and premiums. If the Mortgagee shall have
commenced foreclosure proceedings, the Mortgagee may apply such funds toward the
payment of the Mortgage indebtedness without causing thereby a waiver of any
rights, statutory or otherwise, and specifically such application shall not
constitute a waiver of the right of foreclosure hereunder. The Mortgagor hereby
assigns to the Mortgagee all the foregoing sums so held hereunder for such
purposes;

         (h) Books and Records. The Mortgagor shall maintain full and correct
books and records showing in detail the earnings and expenses of the Mortgaged
Property in accordance with generally accepted accounting principles, and full
and accurate entries of all dealings and transactions relating to the Mortgaged
Property, and will permit the Mortgagee and its agents, accountants and
representatives to examine said books and records and all supporting vouchers
and data any time from time to time upon request by the Mortgagee;

         (i) Financial Statement and Reports. Mortgagor shall furnish to
Mortgagee the financial statements and reports required under the Credit
Agreement;

         (j) Other Proceedings. If any action or proceeding shall be commenced,
excepting an action to foreclose the Mortgage or to collect the debt hereby
secured, to which action or proceeding the Mortgagee is made a party by reason
of the execution of the Mortgage or the Notes, or in which it becomes necessary
to defend or uphold the lien of the Mortgage, all reasonable sums paid by the
Mortgagee for the expense of any litigation to prosecute or defend the rights
and lien created hereby, including attorneys' fees, shall be paid by the
Mortgagor on demand, together with interest thereon from date of demand at the
rate specified in the Notes, and any such sum, and the interest thereon, shall
be immediately due and payable and be secured hereby, having the benefit of the
lien hereby created, as a part thereof and of its priority. The Mortgagee shall
give the Mortgagor prompt notice of the initiation of any such action or
proceeding;

                                      -6-
<PAGE>

         (k) Consent to Release, Etc. Without affecting the liability of the
Mortgagor or any other person (except to the extent such liability is expressly
modified in writing or except for any person expressly released in writing) for
payment of any indebtedness secured hereby or for performance of any obligation
contained herein or in the other Loans Documents, and without affecting the
rights of the Mortgagee with respect to any security not expressly released in
writing, the Mortgagee may at any time and from time to time, either before or
after the maturity of the Notes and without notice or consent:

                  (i) Release any person liable for payment of all or any part
         of the indebtedness evidenced by the Notes or for performance of any
         obligation contained in the other Loans Documents;

                  (ii) Make any agreement extending the time or otherwise
         altering the terms of payment of all or any part of the Notes
         indebtedness, or modifying or waiving any obligation in the Loans
         Documents, or subordinating, modifying or otherwise dealing with the
         lien or charge hereof;

                  (iii) Exercise or refrain from exercising or waive any right
         the Mortgagee may have hereunder, in the other Loans Documents, or by
         law;

                  (iv) Accept additional security of any kind; or

                  (v) Release or otherwise deal with any property, real or
         personal, securing the indebtedness, including all or any part of the
         Premises;

         (l) Leases. The terms and conditions pursuant to which all leases and
rents respecting the Premises are assigned to Mortgagee are set forth in the
assignment of leases and rents of even date from Mortgagor to Mortgagee;

         (m) Due on Sale. This Mortgage is not assignable or assumable and if
all or any part of the Mortgaged Property is sold, transferred, or otherwise
conveyed, without Mortgagee's prior written consent, then the Mortgagee may, at
its option, require immediate payment in full of all sums secured by this
Mortgage (for purposes of this paragraph, a net lease having a term of fifty
(50) years or more shall constitute a sale);

         (n) Liens and Other Mortgages. The Mortgagor shall not grant any other
mortgage, lien or security interest in the Mortgaged Property without
Mortgagee's prior written consent which shall not be unreasonably withheld;

         (o) Underground Tanks. The Mortgagor will comply with applicable laws
and regulations relating to the inspection and replacement of underground fuel
storage tanks located on the Premises including without limitations, New
Hampshire Water Supply and Pollution Control Commission Regulation WS-411, et
seq.

                                      -7-
<PAGE>

         (p) Flood Hazard; Hazardous Materials. The Premises are not located in
an "area of Special Flood Hazard", as that term is defined in the National Flood
Insurance Act of 1968 (as amended and supplemented by the Flood Disaster
Protection Act of 1973), and, to the Mortgagor's knowledge, except as may be set
forth in any environmental site assessment report which the Mortgagee has
obtained and accepted as a condition precedent to the granting of the Loanss, a
copy of which has been delivered to the Mortgagee, the Premises do not contain
any oil, hazardous wastes, hazardous substances, hazardous materials, toxic
substances or toxic pollutants (collectively, "Hazardous Materials"), as those
terms are used in the Resource Conservation and Recovery Act, the Comprehensive
Environmental Response, Compensation and Liability Act, the Hazardous Materials
Transportation Act and the Toxic Substances Control Act, the Clean Air Act, the
Clean Water Act, or any similar state or local law, (including, but not limited
to, New Hampshire Revised Statutes Annotated Chapters 147-A, 147-B, and 147-C et
seq.), or in any regulations promulgated pursuant thereto, or in any other
applicable law (collectively, "Hazardous Waste Laws"), or any asbestos, in
violation of Hazardous Waste Laws. The Mortgagor covenants to comply with the
requirements of all Hazardous Waste Laws and to promptly notify the Mortgagee of
the commencement or threat to commence any enforcement action by any federal or
state environmental agency relative to the presence in or on the Premises of any
materials, the use, storage, transportation or disposal of which is regulated by
the Hazardous Waste Laws (and immediately to notify Mortgagee if at any future
time there is a discharge, deposit, injection, dumping, spilling, leaking,
incineration or placing of any Hazardous Materials into or on the Premises or
if, at any time, the use, generation, storage, treatment, disposal, or
transportation of any Hazardous Materials in, on, to, or from the Premises is in
violation of any law). The Mortgagor hereby covenants to protect, indemnify, and
hold the Mortgagee harmless from and against all loss, cost, damage and
liability, including attorneys' fees and costs of litigation, suffered or
incurred by the Mortgagee on account of the presence of any Hazardous Materials
in, on, or under the Premises, including, without limitation, any such loss,
cost, damage or liability arising from a violation of any Hazardous Waste Laws,
except for fines or penalties incurred by Mortgagee for its failure to comply
with any lawful order from an environmental agency directed to Mortgagee. The
Mortgagor covenants not to permit any tenants or other occupants of the Premises
to use any portion or all of the Premises for the use, generation, treatment,
storage, disposal, or transportation of Hazardous Materials, except with the
prior written consent of the Mortgagor and in compliance with all applicable
laws and regulations. The Mortgagee, at its election and in its sole discretion
but upon notice to Mortgagor, may (but shall not be obligated to) cure any
failure on the part of Mortgagor or any occupant of the Premises so as to comply
with the foregoing and any all applicable laws in furtherance thereof following
notification from any federal or state environmental agency of a violation and
intent to commence an enforcement action, including, without limitation (i)
arrange for the clean up or containment of Hazardous Materials found in, on, or
near the Premises and pay for such clean up and containment costs and costs
associated therewith; (ii) pay on behalf of Mortgagor or any occupant of the
Premises, any fines or penalties imposed on Mortgagor or any occupant by any
federal, state, or local governmental agency or authority in connection with
such Hazardous Materials; and (iii) make any other payment or perform any other
act which may prevent a release of Hazardous Materials, facilitate the clean up
thereof, and/or prevent a lien from attaching to the Premises. Any partial
exercise by Mortgagee of the remedies hereinabove set forth or any partial
undertaking on the part of Mortgagee to cure Mortgagor's failure or any

                                      -8-
<PAGE>

failure by an occupant of the Premises to comply with all applicable laws, shall
not obligate Mortgagee to complete the actions taken or require Mortgagee to
expend further sums to cure Mortgagor's or any such occupants' non-compliance;
neither shall the exercise of any remedy operate to place upon the Mortgagee any
responsibility for the operation, control, care, management or repair of the
Premises, or make the Mortgagee the "operator" or "owner" of the Premises within
the meaning of the Hazardous Waste Laws. The Mortgagee, by making any such
payment or incurring any such costs, shall be subrogated to any rights of the
Mortgagor or any occupant on the Premises to seek reimbursement from any third
parties, including without limitation, the predecessor in interest to the
Mortgagor's title or a predecessor to the occupant's use of the Premises who may
be a "responsible party" under the Hazardous Waste Laws, in connection with the
presence of such materials in, on or near the Premises. The Mortgagee, in the
reasonable exercise of its discretion and with reasonable notice under the
circumstances, may, at any time, without regard to whether Mortgagor is in
default, cause one or more environmental assessments of the Premises to be
undertaken. The Mortgagor shall be obligated to pay for any such environmental
assessment only if conducted following the occurrence of an Event of Default.
Environmental assessments may include a detailed visual inspection of the
Premises, including, without limitation, all storage areas, storage tanks,
drains, drywells, and leaching areas, as well as the taking of soil samples,
surface water samples, and ground water samples, and such other investigation or
analysis as is necessary or appropriate for a complete assessment of the
compliance of the Premises and the use and operation thereof with all Hazardous
Waste Laws;

         (q) Future Advances. Future advances from the Mortgagee and Lenders, if
any, shall be secured by this Mortgage as evidenced by the Notes secured hereby;

         (r) Compliance with Laws, Etc. The Premises and the Mortgagor's use and
occupancy thereof comply in all material respects with all applicable zoning,
building, condominium, environmental, and other laws, ordinances, and
regulations. The Mortgagor has no knowledge of any claim of any violation of any
such legal requirements. The Mortgagor will comply, and will cause any tenant or
person occupying the Premises to comply, with all applicable laws, regulations,
covenants, rules, ordinances, statutes, codes, permits, orders and decrees
applicable to the Mortgagor, the Mortgaged Property, or the use, occupancy or
condition of the Premises. The Mortgagor, if an entity other than a natural
person, will, so long as the indebtedness secured hereby remains outstanding, do
all things necessary to preserve and keep in full force and effect its
existence, franchises, rights and privileges as such an entity under the laws of
the state of its incorporation or creation including, without limitation, the
payment of all fees and other charges required in connection therewith. The
Mortgagor shall have the right to contest by appropriate legal proceedings, but
without cost or expense to the Mortgagee, the validity of any laws, ordinances,
orders, rules, regulations and assessments affecting the Mortgagor or the
Mortgaged Property if compliance therewith may legally be held in abeyance
without the sufferance of any charge, lien or liability against the Mortgaged
Property, and the Mortgagor may postpone compliance therewith until the final
determination of any such proceedings, provided they shall be prosecuted with
due diligence and dispatch, and if any lien or charge is incurred, the Mortgagor
may, nevertheless, make the contest and delay compliance,

                                      -9-
<PAGE>

provided the Mortgagee is furnished with security reasonably satisfactory to it
against any loss or injury by reason of such noncompliance or delay;

         (s) Mechanics Liens, Etc. The Mortgagor will pay or bond off, as the
same shall become due, all lawful claims and demands of mechanics, materialmen,
laborers and others which, if unpaid, might result in, or permit the creation
of, a lien on the Mortgaged Property or on the revenues, rents, issues, income
and profits arising therefrom. The Mortgagor will not create or permit to be
created and will promptly discharge or bond off any mortgage, lien, or charge on
the Mortgaged Property or on the interest of the Mortgagor or the Mortgagee
therein, and the Mortgagor will do or cause to be done everything necessary so
that the lien hereof shall be fully preserved, at the cost of the Mortgagor,
without expense to the Mortgagee;

         (t) No Homestead Interest. The Premises are commercial property and
there is no homestead interest in the Premises;

         (u) Further Assurances. Mortgagor shall promptly upon request of
Mortgagee: (i) correct any defect, error or omission which may be discovered in
the contents of this Mortgage or any other Loans Document or in the execution or
acknowledgment thereof; and/or (ii) execute, acknowledge, deliver and record or
file such further instruments and do such further acts, in either case as may be
necessary, desirable or proper in Mortgagee's opinion to (x) protect and
preserve the first and valid lien and security interest of this Mortgage on the
Mortgaged Property or to subject thereto any property intended by the terms
thereof to be covered thereby, including, without limitation, any renewals,
additions, substitutions or replacements thereto; or (y) protect the interest
and security interest of Mortgagee in the Mortgaged Property against the rights
or interests of third parties. Mortgagor hereby appoints Mortgagee as its
attorney-in-fact, coupled with an interest, to take the above actions and to
perform such obligations on behalf of Mortgagor, at Mortgagor's sole expense, if
Mortgagor fails to comply fully with this Paragraph;

         (v) Indemnity. Mortgagor shall indemnify, defend and hold harmless
Mortgagee from and against, and, upon demand, reimburse Mortgagee for, all
claims, demand, liabilities, losses, damages, judgments, penalties, costs and
expenses, including, without limitation, reasonable attorneys' fees and
disbursements, which may be imposed upon, asserted against or incurred or paid
by Mortgagee by reason of, on account of or in connection with, any bodily
injury or death or property damage occurring in, upon or in the vicinity of the
Mortgaged Property through any cause whatsoever, or asserted against Mortgagee
on account of any act performed or omitted to be performed under the Loans
Documents or on account of any transaction arising out of or in any way
connected with the Mortgaged Property or the Loans Documents, except as a result
of the willful misconduct or negligence of Mortgagee. Mortgagor shall indemnify
and repay Mortgagee immediately upon demand for any expenditures or amounts
advanced (other than advances of principal under the Notes) by Mortgagee at any
time under the Loans Documents; and

         (w) Appraisals. Mortgagor shall upon demand reimburse Mortgagee for the
reasonable costs of all appraisals of the Mortgaged Premises required by
Mortgagee .

                                      -10-
<PAGE>

         2. Payments by the Mortgagee. If the Mortgagor shall neglect or refuse
to keep the Property in good repair, to maintain and pay the premiums for
insurance which may be required under Paragraph 1(d) or to pay and discharge all
taxes, assessments, charges and liens of every nature and to whomever assessed,
as provided for in Paragraphs 1(e) and 1(s), the Mortgagee may, at its election,
cause such repairs to be made, obtain such insurance or pay said taxes,
assessments, charges and liens, and any amounts paid as a result thereof,
together with interest thereon at the rate of interest specified in the Notes
secured hereby from the date of payment, shall be immediately due and payable by
the Mortgagor to the Mortgagee, and until paid shall be added and become part of
the principal debt secured hereby (but shall not be subject to any prepayment
penalty or premium if repaid by Mortgagor prior to maturity of the Notes), and
the same may be collected as a part of said principal debt in any suit herein or
upon the Notes; or the Mortgagee, by the payment of any tax, assessment or
charge, may, if it sees fit if allowed by law, be thereby subrogated to the
rights of the state, county, city, town and all political or governmental
subdivisions. No such advances shall be deemed to relieve the Mortgagor of any
default hereunder or impair any right or remedy consequent thereon, and the
exercise of the rights to make advances granted in this paragraph shall be
optional with the Mortgagee and not obligatory, and the Mortgagee shall not in
any case be liable to the Mortgagor for a failure to exercise any such right.
The Mortgagee shall have no responsibility with respect to the legality,
validity and priority of any such claim, lien, encumbrance, tax, assessment and
premium, and of the amount necessary to be paid in satisfaction thereof.

         3. Casualties and Takings.

         (a) Notice to Mortgagee. In the case of any act or occurrence of any
kind or nature which results in damage, loss or destruction to the Mortgaged
Property (a "Casualty"), or commencement of any proceedings or actions which
might result in a condemnation or other taking for public or private use of the
Mortgaged Property or which relates to injury, damage, benefit or betterment
thereto (a "Taking"), Mortgagor shall immediately notify Mortgagee describing
the nature and the extent of the Casualty or the Taking, as the case may be, if
in excess of $25,000. Mortgagor shall promptly furnish to Mortgagee copies of
all notices, pleadings, determinations and other papers in any such proceedings
or negotiations.

         (b) Repair and Replacement. In case of a Casualty or Taking, Mortgagor
shall promptly restore, repair, replace and rebuild the Mortgaged Property as
nearly as possible to its quality, utility, value, condition and character
immediately prior to the Casualty or the Taking, as the case may be, regardless
of whether Insurance Proceeds or Taking Proceeds (defined below) are sufficient,
provided that the Mortgagee makes available for such purpose any Insurance
Proceeds or Taking Proceeds (less the Mortgagee's costs, if any, of recovery or
settlement) on the terms set forth in subparagraph (c), below.

         (c) Proceeds.

                           (i) Collection. Mortgagor shall use its best efforts
         to collect the maximum amount of insurance proceeds payable on account
         of any Casualty ("Insurance Proceeds"), and the maximum award or
         payment or compensation payable on account of

                                      -11-
<PAGE>

         any Taking ("Taking Proceeds"). In the case of a Casualty, Mortgagee
         may, at its sole option, make proof of loss to the insurer if not made
         promptly by Mortgagor. Mortgagor shall not settle or otherwise
         compromise any claim for Insurance Proceeds or Taking Proceeds without
         Mortgagee's prior written consent.

                           (ii) Assignment to Mortgagee. Mortgagor hereby
         assigns, sets over and transfers to Mortgagee all Insurance Proceeds
         and Taking Proceeds and authorizes payment of such Proceeds to be made
         directly to Mortgagee which shall, upon Mortgagor's written request,
         apply such proceeds or portion thereof to the portion or portions of
         the Premises damaged or destroyed or, if a Taking, such portion or
         portions not taken (the "Work"), on the following terms and conditions:

                                    (A) Mortgagor shall have provided plans and
                           specifications for the Work which have been approved
                           by Mortgagee, as well as the general contractor and
                           principal subcontractors and suppliers, and the Work
                           shall restore the Premises to at least the same
                           economic value as prior to the Casualty or Taking;

                                    (B) Mortgagee shall be satisfied that the
                           Insurance or Taking Proceeds are sufficient to
                           complete the Work or, if insufficient, Mortgagor has
                           deposited with Mortgagee sufficient additional funds
                           to complete the Work;

                                    (C) The Work can be completed within nine
                           (9) months of the receipt of the Insurance Proceeds
                           of Taking Proceeds but in no event later than the
                           maturity date of the Notes; and

                                    (D) The Insurance or Taking Proceeds shall
                           be disbursed as the Work progresses in installments
                           upon application to Mortgagee in accordance with such
                           procedures as it may reasonably establish subject to
                           the requirements that Mortgagee is satisfied at all
                           times that it has sufficient funds remaining from
                           such proceeds to complete the Work, and that such
                           certifications, lien waivers, releases, affidavits,
                           and title updates are delivered to Mortgagee as it
                           may reasonably require . Any portion of Insurance or
                           Taking Proceeds remaining after payment of the costs
                           of the Work may be applied by Mortgagee in its sole
                           discretion to pay down the principal balance of the
                           indebtedness secured hereby, provided such payment
                           shall not be subject to any prepayment premium or
                           penalty contained in the Notes. The foregoing
                           notwithstanding, Mortgagee shall not be obligated
                           hereunder to disburse any Insurance or Taking
                           Proceeds to repair, rebuild, or restore the Premises,
                           and may apply such proceeds to payment of the
                           indebtedness secured hereby, either in whole or in
                           part, in an order determined by Mortgagee in its sole
                           unfettered discretion if an Event of Default that
                           cannot be cured by the repair, restoration, and/or
                           rebuilding of the Premises shall have occurred and
                           remains uncured as of

                                      -12-
<PAGE>

                           the date of the Casualty or Taking or anytime
                           thereafter prior to completion of the Work.

         Mortgagee shall not be a trustee with respect to any Insurance Proceeds
         or Taking Proceeds, and shall maintain Insurance Proceeds or Taking
         Proceeds in a separate interest bearing account. If any portion of the
         indebtedness secured hereby shall thereafter be unpaid, Mortgagor shall
         not be excused from the payment thereof in accordance with the terms of
         the Loans Documents. Mortgagee shall not, in any event or circumstance,
         be liable or responsible for failure to collect or exercise diligence
         in the collection of any Insurance Proceeds or Taking Proceeds.

         4. Events of Default. The following events shall be deemed "Events of
Default" hereunder:

         (a) Failure by Mortgagor to make any payment when due or within the
applicable grace period, if any, under the Notes;

         (b) Mortgagor defaults in the observance or performance of any
covenant, warranty, or agreement required to be observed or performed by it
under this Mortgage (other than a payment default referenced in subparagraph (a)
above) and fails to cure such default within thirty (30) days after written
notice from Mortgagee, or such longer period as is reasonably required to effect
such cure so long as Mortgagor promptly commences and diligently pursues such
cure, and provided that the Mortgagor shall not be entitled to any cure period
or a continuance or extension thereof if the existence or continuance of such
default has an immediate material adverse affect upon the Mortgagor or the
Mortgaged Property;

         (c) Any representation or warranty or statement of fact made to
Mortgagee at any time by Mortgagor is false or misleading or becomes false or
misleading in any material respect when made;

         (d) The occurrence of a default or an event of default under the Credit
Agreement, any other Loans Document (exclusive of this Mortgage), or any other
mortgage and security agreement by and between Mortgagor and Mortgagee of near
or even date herewith, and lapsing of the applicable grace period, if any (and
provided that all grace or cure periods provided under this Mortgage shall run
concurrently with all grace and cure periods provided under the Credit Agreement
or the Loans Documents);

         (e) Mortgagor shall be in default under any other obligation owed to
Mortgagee, whether now existing or hereafter arising, which has not been cured
within the applicable grace period, if any, or shall be in default under any
other obligation owed to a third party which default has a material adverse
effect on the financial condition of Mortgagor or on the value of the Mortgaged
Property and the grace period, if any, for curing such default has expired;

                                      -13-
<PAGE>

         (f) Uninsured loss, theft, damage, or destruction of any substantial
portion of any of the Mortgaged Property which materially impairs its value to
the Mortgagor and the Mortgagee either as to any individual piece of Mortgaged
Property or in the aggregate;

         (g) Proceedings shall be commenced or an order, judgment or decree
shall be entered, without the application, approval or consent of the Mortgagor,
in or by any court of competent jurisdiction, relating to the bankruptcy,
dissolution, liquidation, reorganization of the Mortgagor or the appointment of
a receiver, trustee or liquidator of all or a substantial part of its assets,
and such proceedings, order, judgment or decree shall continue undischarged or
unstayed for a period of sixty (60) days;

         (h) The Mortgagor shall (1) apply for or consent to the appointment of
a receiver, trustee or liquidator of it or any of its property, (2) make a
general assignment for the benefit of creditors, (3) be adjudicated as bankrupt
or insolvent, (4) file a voluntary petition in bankruptcy, or a petition or an
answer seeking reorganization, arrangement, insolvency, readjustment of debt,
dissolution or liquidation under any law or statute, or an answer admitting the
material allegations of a petition filed against it in any proceeding under any
such law or statute, or (5) offer or enter into any composition, extension or
arrangement seeking relief or extension of its debts;

         (i) One or more final judgments, decrees or orders shall be entered
against Mortgagor and all such judgments, decrees or orders shall not have been
satisfied, vacated, dismissed, or stayed or bonded pending appeal (or other
contest by appropriate proceedings) within thirty (30) days from the entry
thereof;

         (j) Mortgagor ceases to exist by reason of dissolution, liquidation or
merger or consolidation with or into another entity or, if the Mortgagor is a
natural person, the Mortgagor dies or becomes incompetent, unless within sixty
(60) days of the death of a Mortgagor the estate of the deceased Mortgagor
lawfully acknowledges and assumes in writing its liability under the Notes, and
such estate satisfies all of the covenants previously imposed on the deceased
Mortgagor and at all times thereafter complies with the covenants previously
imposed upon the deceased Mortgagor; or

         (k) Pursuant to one or more judgments, decrees, orders, or other
proceedings, whether legal or equitable, any attachment, execution or other writ
is levied upon any material part of the property or assets of Mortgagor and is
not satisfied, dismissed or stayed (including stays resulting from the filing of
an appeal) within thirty (30) day;

         Upon the occurrence of any Event of Default, then the full principal
sum or unpaid balance of the debt secured hereby, together with interest and all
advances, if any, shall, at the option of the Mortgagee, or its successors or
assigns, immediately become due and payable, whereupon the Mortgagee, or its
successors or assigns, may forthwith exercise all of the rights and remedies
provided in this Paragraph and Paragraphs 5, 6, and 7 hereinbelow, as well as in
any of the other Loans Documents, or available to the Mortgagee at law or in
equity, including without limitation the STATUTORY POWER OF SALE.
Notwithstanding any other provisions

                                      -14-
<PAGE>

set forth herein and without limitation thereof, this Mortgage is upon the
STATUTORY CONDITIONS for any breach of which, not cured within the grace period,
if any, provided above for such default, the Mortgagee shall have the STATUTORY
POWER OF SALE pursuant to New Hampshire RSA Chapter 479.

         5. Possession by Mortgagee.

         (a) If the Mortgagee shall take possession of the Mortgaged Property as
permitted hereby, then in addition to, and not in limitation of, the Mortgagee's
STATUTORY POWER OF SALE, the Mortgagee may:

                  (i) hold, manage, operate, and lease the Mortgaged Property to
         the Mortgagor or to any other entity on such terms and for such
         period(s) of time as the Mortgagee may deem proper, and the provisions
         of any lease made by the Mortgagee pursuant hereto shall be valid and
         binding upon the Mortgagor notwithstanding the fact that the
         Mortgagee's right of possession may terminate or this Mortgage may be
         satisfied of record prior to the expiration of the term of such lease;

                  (ii) make such alterations, additions, improvements,
         renovations, repairs, and replacements to the Mortgaged Property as the
         Mortgagee may reasonably deem necessary to preserve and protect the
         value of its collateral;

                  (iii) remodel such improvements so as to make the same
         available in whole or in part for business purposes in order to
         preserve and protect the value of the Mortgagee's collateral;

                  (iv) collect the rents, issues, and profits arising from the
         Mortgaged Property, past due and thereafter becoming due, and apply the
         same, in such order of priority as the Mortgagee may determine, to the
         payment of all charges and commissions incidental to the collection of
         rents, the management of the Mortgaged Property, and thereafter to the
         obligations secured hereby, and all sums or charges required to be paid
         by the Mortgagor hereunder; and

                   (v) take any other action the Mortgagee deems necessary or
         appropriate in its sole discretion to preserve, protect, or improve the
         Mortgaged Property in order to preserve and protect the value of the
         Mortgagee's collateral;

         (b) All monies advanced by the Mortgagee for the above purposes and not
repaid out of the rents collected shall immediately and without demand be repaid
by the Mortgagor to the Mortgagee, together with interest thereon at the same
rate as provided in the Notes, and shall be added to the principal indebtedness
secured hereby;

         (c) The taking of possession and the collection of rents by the
Mortgagee as described above shall not be construed to be an affirmation of any
lease of the Mortgaged Property or any part thereof, and the Mortgagee, or any
purchaser at any foreclosure sale, may terminate any such

                                      -15-
<PAGE>

lease at any time, whether or not such taking of possession and collection of
rents has occurred,; and

         (d) Mortgagor hereby releases Mortgagee from liability for losses or
damages which Mortgagor may incur as a result of Mortgagee taking possession of
the Mortgaged Property and exercising and performing its rights and duties
otherwise set forth in this Paragraph, except for such losses or damages
resulting from Mortgagee's gross negligence or willful misconduct.

         6. Foreclosure of Premises Pursuant to Statutory Power of Sale.

         (a) Upon an Event of Default, the Mortgagee or its legal
representatives or assigns may, on such terms and conditions as the Mortgagee
deems appropriate in its sole discretion and pursuant to the STATUTORY POWER OF
SALE, sell the Premises by public sale as provided herein and in N.H. RSA
479:25-27-a, as such statutes may be amended from time to time;

         (b) If the Mortgagee invokes the POWER OF SALE, the Mortgagee shall
without further demand upon the Mortgagor, auction the Premises or any estate
therein, in one or more parcels, in one or more sales, to the highest or most
responsible bidder for cash or other consideration acceptable to the Mortgagee,
such auction to be held upon the Premises;

         (c) The deed given by reason of a power of sale foreclosure shall
convey to the purchaser an indefeasible title to the Premises or tracts, parcels
or other interests therein sold, discharged of all rights of redemption with
respect to this Mortgage by the Mortgagor, or any person claiming from or under
Mortgagor. The Mortgagee shall apply the proceeds of such sale first to any
prior encumbrance, then to all costs of notice and sale of the Premises,
including reasonable attorneys', accountants' and appraisers' fees, then to any
and all accrued but unpaid interest due to the Mortgagee under the Notes, then
to the principal indebtedness evidenced by the Notes and thereafter to its Other
Indebtedness secured hereby. Any excess may, unless objected to by the
Mortgagor, be paid to others having a lien on the Premises not having priority
over this Mortgage and, if none, then to the Mortgagor. If objected to by
Mortgagor, Mortgagee may interplead such excess with a court of competent
jurisdiction for a judicial determination of the party or parties entitled to
payment of such excess, with Mortgagee's costs of the interpleader action
(including attorneys' fees) to be paid by Mortgagor and secured hereby. The
Mortgagor shall be liable for any deficiency;

         (d) In the event of foreclosure, at the option of the Mortgagee, the
interest of each of the Mortgagor and the Mortgagee herein may be sold as a
single unit together with such personal property, furniture, furnishings,
fixtures, machinery, and equipment as may secure the Notes or be secured by the
Loans Documents;

         (e) If the provisions of the Uniform Commercial Code as adopted by the
State of New Hampshire or by the State in which the Premises are located ("UCC")
apply to any property or security given to secure the indebtedness secured
hereby which is sold with or as a part of the Premises, or any part thereof, at
one or more foreclosure sales, any notice required under such

                                      -16-
<PAGE>

provisions shall be deemed commercially reasonable and fully satisfied by the
notice provided to be given hereby in execution of the POWER OF SALE; and

         (f) The Mortgagee may resort to any remedies and the security given by
the Loans Documents in whole or in part, and in such portions and in such order
as may seem best to Mortgagee in its sole discretion, and Mortgagor waives all
rights to a marshalling of its assets.

         7. UCC Sale of Personal Property. The Mortgage is intended to be and is
a security agreement and financing statement with respect to the Personal
Property pursuant to, and in accordance with, the terms of the UCC. Upon an
Event of Default, the Mortgagee may, at its discretion, require the Mortgagor to
assemble the Personal Property and make it available to the Mortgagee at a place
reasonably convenient to both parties to be designated by the Mortgagee. The
Mortgagee shall give the Mortgagor notice, by registered mail, postage prepaid,
of the time and place of any public sale of any of the Personal Property or of
the time any private sale or other intended disposition thereof is to be made by
sending notice to the Mortgagor at least ten (10) days before the time of the
sale or other disposition, which provisions for notice the Mortgagor and the
Mortgagee agree are reasonable; provided, however, that nothing herein shall
preclude the Mortgagee from proceeding as to both the Personal Property and the
Premises, in accordance with the Mortgagee's rights and remedies in respect of
the Premises. The Mortgagee shall have all of the remedies of a secured party
under the UCC as now in effect, and such further remedies as may from time to
time hereafter be provided in New Hampshire for a secured party. The Mortgagor
agrees that all rights of the Mortgagee as to the Personal Property and the
Premises may be exercised together or separately and further agrees that in
exercising its power of sale as to the Personal Property and the Premises, the
Mortgagee may sell the Personal Property or any part thereof, either separately
from or together with the sale of the Premises or any part thereof, all as the
Mortgagee may in its discretion elect. Mortgagor warrants, for UCC purposes,
that its principal place of business is in Manchester, New Hampshire.

         8. Joint and Several Liability. If the Mortgagor be more than one
party, such parties shall be jointly and severally liable under any and all
obligations, covenants and agreements of the Mortgagor contained herein or in
any of the other Loans Documents, and any reference herein to "Mortgagor" shall
mean and refer to such parties individually and collectively.

         9. General Provisions. The Mortgagor and the Mortgagee further agree
that:

         (a) Waivers.

                  (i) Except as otherwise specifically provided in this
         Mortgage, the Notes and the other Loans Documents, the Mortgagor waives
         demand, notice of any action taken in reliance on this Mortgage, and
         all other demands and notices of any description;

                  (ii) No delay or omission on the part of the Mortgagee in
         exercising any right or remedy hereunder shall operate as a waiver of
         such right or remedy or of any other right or remedy under this
         Mortgage. A waiver on any one occasion shall not be construed as a bar
         to or waiver of any such right and/or remedy on any future occasion.

                                      -17-
<PAGE>

         No single or partial exercise of any power hereunder shall preclude
         other or future exercise thereof or the exercise of any other right;
         and

                  (iii) That receipt and disposition of rents, income of the
         Mortgaged Property, insurance proceeds, eminent domain awards, or any
         other sums under the provisions of the Loans Documents by the Mortgagee
         shall not be a waiver or release of any rights of the Mortgagee,
         including but not limited to, the right of foreclosure or acceleration
         of the Notes, whether such receipt or disposition shall be before or
         after exercise of any such rights.

         (b) Binding Agreement. This Mortgage shall inure to the benefit of and
shall be binding upon the parties hereto and their respective heirs, legal
representatives, successors, and permitted assigns; provided, however, that any
assumption of any obligations of Mortgagor hereunder shall not constitute a
release of the party whose obligation is being assumed without the Mortgagee's
prior written consent.

         (c) Amendment. This Mortgage shall not be changed in any respect except
by written instrument signed by the parties hereto.

         (d) Governing Law. This Mortgage and all rights and obligations
hereunder, including matters of construction, validity, and performance, shall
be governed by the laws of the State of New Hampshire.

         (e) Severability. If any term, condition, or provision of this Mortgage
or the application, thereof to any person or circumstance shall, to any extent,
be held invalid or unenforceable according to law, then the remaining terms,
conditions, and provisions of this Mortgage, or the application of any such
invalid or unenforceable term, condition or provision to persons or
circumstances other than those to which it is held invalid or unenforceable,
shall not be affected thereby, and each term, condition, and provision of this
Mortgage shall be valid and enforced to the fullest extent permitted by law.

         (f) Headings. The descriptive headings of the sections of this Mortgage
have been inserted for convenience and reference only and shall not control or
affect the meaning or construction of any of the contents hereof.

         (g) Estoppel Certificate. The Mortgagor, within five (5) days after
being given notice as provided below, will furnish to the Mortgagee a written
statement duly acknowledged by the Mortgagor or its representative certifying
the principal amount then outstanding on the Notes and certifying that no
offsets or defenses exist against the Mortgage indebtedness or, if there are any
alleged offsets or defenses, what are such alleged offsets or defenses.

         (h) Notices. All notices, requests, demands and other communications
provided for hereunder shall be in writing and shall be either mailed by
certified or registered mail, return receipt requested, or delivered by a
regularly scheduled overnight express carrier ("Overnight Carrier"), to the
applicable party at the following addresses:

                                      -18-
<PAGE>

         If to the Mortgagor, to:

         Presstek, Inc.
         55 Executive Drive
         Hudson, New Hampshire 03051
         Attention:  Moosa E. Moosa, Vice President - Finance

         If to the Mortgagee, to:

         Citizens Bank New Hampshire
         One Trafalgar Square
         Nashua, New Hampshire 03063
         Attention:  Timothy J. Whitaker, Vice President

or, as to each party, at such other address as shall be designated by such
parties in a written notice to the other party complying as to delivery with the
terms of this Paragraph. All such notices, requests, demands and other
communication shall be deemed given and received on the earlier of:

                  (i) the date received;

                  (ii) if mailed as provided above, the date of delivery,
         attempted delivery or refusal of delivery, as indicated on the return
         receipt; or

                  (iii) if given to an Overnight Carrier for delivery, the first
         business day after being received by the Overnight Carrier.

         (i) Gender and Number. All words denoting gender or number shall be
construed to include any other gender or number as the context and facts
require.

         (j) Conflict with other Loans Documents. In the event of any conflict
between the terms, covenants, conditions and restrictions contained in the Loans
Documents, the term, covenant and condition or restriction which grants the
greater benefit upon the Mortgagee shall control. The determination as to which
term, covenant, condition or restriction is the more beneficial shall be made by
the Mortgagee in its sole discretion.

         (k) Waiver of Right of Exemption. The Mortgagor, for the consideration
aforesaid, hereby waives all rights of exemption in the Mortgaged Property as
the same are now or here after provided by virtue of the Bankruptcy provisions
of the United States Code, including, without limitation, 11 U.S.C. 522.

         (l) Rights Cumulative. All rights and remedies set forth herein and in
the Loans Documents shall be cumulative and concurrent, and may be pursued,
singly, successively, or

                                      -19-
<PAGE>

together, at the Mortgagee's sole discretion, and may be exercised as often as
occasion therefor shall occur; Mortgagor expressly waives the application of any
doctrine of marshalling of assets.

         (m) Jury Trial Waiver. Recognizing that any dispute arising hereunder
will be commercial in nature and complex, and in order to minimize the costs
involved in the dispute resolution process, the undersigned hereby waives the
right to a trial by jury.

                                      -20-
<PAGE>

         IN WITNESS WHEREOF, the Mortgagor and the Mortgagee have executed and
delivered this Mortgage and Security Agreement as of this 15 day of October,
2003.

Witness:                                MORTGAGOR:

                                        PRESSTEK, INC.

/s/ James F. Scafidi                    By: /s/ Moosa E. Moosa
------------------------------              ------------------------------------
                                           Name: Moosa E. Moosa
                                           Title: Vice President - Finance

                                        MORTGAGEE:

                                        CITIZENS BANK NEW HAMPSHIRE

/s/ Thomas P. Manson                    By: /s/ Timothy J. Whitaker
------------------------------              ------------------------------------
                                            Timothy J. Whitaker, Vice President

                                      -21-
<PAGE>

STATE OF NEW HAMPSHIRE
COUNTY OF HILLSBOROUGH

         On this the 15th day of October, 2003, before me, the undersigned
officer, personally appeared Moosa E. Moosa, who acknowledged himself to be the
Vice President - Finance of Presstek, Inc., a Delaware corporation, and
acknowledged that he, as such officer, being authorized so to do, executed the
foregoing instrument on behalf of such for the purposes contained therein.

                                         /s/ Connie L. Rakowsky
                                         ---------------------------------------
                                         Justice of the Peace/Notary Public
                                         My Commission Expires: 1/6/04

STATE OF NEW HAMPSHIRE
COUNTY OF HILLSBOROUGH

         On this the 15th day of October, 2003, before me, the undersigned
officer, personally appeared Timothy J. Whitaker, who acknowledged himself to be
a Vice President of Citizens Bank New Hampshire, a New Hampshire banking
corporation, and acknowledged that he, as such officer, being authorized so to
do, executed the foregoing instrument on behalf of said banking corporation for
the purposes therein contained.

                                         /s/ Connie L. Rakowsky
                                         ---------------------------------------
                                         Justice of the Peace/Notary Public
                                         My Commission Expires: 1/6/04

                                      -22-
<PAGE>

                                   SCHEDULE A
                                   ----------
                                Legal Description
                                -----------------

         TRACT I: [Fee in Lot 8-1] A certain tract or parcel of land, with the
buildings and improvements located thereon, situate in Hudson, Hillsborough
County, New Hampshire, shown as LOT 8-1 on Plan entitled "Tax Map 13, Lot 8,
Subdivision Plan of Land of Digital Equipment Corporation, Executive Drive and
Lowell Road prepared for Presstek/Industrial Plant" by TFMoran, Inc. and
recorded as Plan 28159 (3 sheets); said Lot 8-1 being more particularly
described as follows:

         Commencing at a point on the easterly side of Executive Drive on the
southerly side of Lot 8-1; thence

         1.       North 08E22'38" East a distance of 150.00 feet to a point;

         2.       North 81E37'22" West a distance of 50.00 feet along the end of
                  Executive Drive to a point; thence

         3.       South 79E44'22" West a distance of 535.00 feet to a point and
                  continuing on said course 305 feet, more or less, to the bank
                  of the Merrimack River; thence

         4.       In a generally northerly direction along the bank of the
                  Merrimack River a distance of 755 feet, more or less, to a
                  point (the tie course being North 12E33'54" East a distance of
                  746.84 feet); thence

         5.       South 89E57'11" East a distance of 173 feet, more or less, to
                  a point; thence

         6.       North 35E18'16" East a distance of 54.29 feet to a point;
                  thence

         7.       North 57E24'50" East a distance of 323.05 feet to a point;
                  thence

         8.       South 69E26'29" East a distance of 571.05 feet to a point;
                  thence

         9.       South 75E00'26" East a distance of 264.82 feet to a point;
                  thence

         10.      South 08E22'38" West a distance of 760.76 feet to a point;
                  thence

         11.      North 81E37'22" West a distance of 470.00 to Executive Drive
                  at the point of beginning.

         Shown to contain 22.944 acres, more or less.

         EXCEPTING that portion of said Lot 8-1 shown as "Existing Cul-De-Sac
Easement B" which was conveyed by Warranty Deed of Presstek, Inc. to the Town of
Hudson which Deed was

                                      -23-
<PAGE>

delivered to the Town of Hudson but has not been recorded, said property being
more particularly described as follows:

         A certain tract or parcel of land situate in Hudson, Hillsborough
         County, New Hampshire, shown as cul-de-sac easement "B" on a plan
         entitled "Southeastern Container, Inc. - Addition No. 2,
         Subdivision/Consolidation Plan" prepared by Allan H. Swanson, Inc. and
         recorded in the Hillsborough County Registry of Deeds as Plan 26916
         (Sheet 2 of 7 sheets) being that portion of the cul-de-sac at the end
         of Executive Drive, which cul-de-sac has a 70 foot radius and which
         portion lies on the easterly side of Executive Drive.

         The said cul-de-sac easement "B" is also shown on a plan entitled
         "Subdivision Plan of Land of Digital Equipment Corporation, Executive
         Drive and Lowell Road, Hudson, NH prepared for Presstek/Industrial
         Plant" by T.F. Moran, Inc. as Plan No. 28159, and is a part of the
         property conveyed by Quitclaim Deed of Digital Equipment Corporation to
         Presstek, Inc. dated August 22, 1996, recorded at Book 5747, Page 1811.

         TRACT II: [Sewer easement appurtenant to Tract I] Certain rights and
easements appurtenant to Tract I above, in a Perpetual Sewer Easement Area 15
feet wide, and the Construction Easement Area, both within Lot 8 on recorded
Plan 28159, and running from the north side of Tract I above to the sewer line
shown on recorded Plan 28159, all as conveyed by the Quitclaim Deed of Digital
Equipment Corporation to Presstek, Inc. dated August 22, 1996 recorded at Book
5747, Page 1811 (contained within pages 2 through 5 of 14 pages of said deed).

         Property Address: 55 Executive Drive, Hudson, NH
         Tax Map/Lot #: Map 13, Lot 8-1.

         SUBJECT TO THE FOLLOWING:

1.       Facts, matters, and details referenced or depicted on the Plan entitled
         "Tax Map 13, Lot 8-1, As-Built Plan, Executive Drive, Hudson, N.H.
         prepared for Presstek/Industrial Plant" dated May 29, 1997, last
         revised 8-19-97 and/or the Surveyor's Report of Hans-Georg Mertsch,
         L.L.S., P.L.S. dated 1/29/98, last revised 2/6/98.*

2.       Easement from the Province of St. Mary of the Capuchin Order to the
         Public Service Company of New Hampshire for a 150 foot strip (includes
         the 100 foot strip) dated in 1969 and recorded at Book 2054, Page 115;
         and an Easement from Laurette M. Jacques to Public Service Company of
         New Hampshire for a 100 foot strip dated February 28, 1950, recorded at
         Book 1249, Page 462.*

3.       Rights of the State of New Hampshire and/or the public, as well as the
         rights of riparian owners up and down the Merrimack River, in and to
         the bed and waters, and the land lying below the high water mark, of
         the Merrimack River.*

4.       Conservation and Pedestrian Easement from Presstek, Inc. to the Town of
         Hudson dated August 29, 1996, recorded at Book 5747, Page 1825.*

                                      -24-
<PAGE>

5.       Tract II in the Continuation of Schedule A (the sewer line easement) is
         subject to the terms of the Deed from Digital Equipment Corporation to
         Presstek, Inc. dated August 22, 1996, recorded at Book 5747, Page
         1811.*

6.       Easement of Presstek, Inc. to Public Service Company of New Hampshire
         and New England Telephone and Telegraph Company, recorded 5/5/97 at
         Book 5809, Page 1819; see Plan 28553.*

7.       Facts, matters and details on any one or more of the following:

         (a) recorded Site Layout Plan #28214, recorded 10/3/96, and the #28802,
         and the Amended Site Layout Plan, Executive Drive, Hudson, N.H.
         prepared for Presstek/Industrial Plan recorded as Plan 28802, shows
         Phases 1,2, and 3 on the Presstek lot, dated 7/26/96*;

         (b) recorded Site Layout Plan # 30055 for 2,712 sq ft addition for bulk
         chemical storage*;

         (c) recorded Site Layout Plan #30056 for Phase II*;

         (d) recorded Subdivision Plan #28159*.

8.       Development Agreement with the Town between Presstek, Inc. and the Town
         of Hudson recorded at Book 5757, Page 907 regarding Lot 8-1. Provided,
         however, the Company, affirmatively insures the Insured, that: Phase I
         has been built and that the CAP fee referenced in paragraph I 4 has
         been paid.

9.       Site Development Agreement with the Town of Hudson for Lot 13-8-1
         recorded September 16, 1999 at Book 6158, Page 9 regarding 2,712 sq ft
         addition for bulk chemical storage.

10.      Development Agreement with the Town of Hudson for Lot 1-8-1 recorded
         September 16, 1999, at Book 6158, Page 13 for Phase II (aka Phase 2.).

11.      UCC Presstek, Inc. to Citizens Bank New Hampshire, recorded 12/24/96 at
         Book 5778, Page 840; all property; all assets.

12.      Mortgage and Security Agreement of Presstek, Inc. to Citizens Bank New
         Hampshire dated February 6, 1998, recorded February 6, 1998 at Book
         5900, Page 160.

13.      Assignment of Leases from Presstek, Inc. to Citizens Bank New Hampshire
         dated February 6, 1998, recorded at Book 5900, Page 184.

                                      -25-

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