Document:

<PAGE>

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

                                                                   Exhibit 10.13

                                DECEMBER 3, 2003

                                    AGREEMENT

                                     BETWEEN

                           CRITICAL THERAPEUTICS, INC

                                       AND

                                   JAGOTEC AG

<PAGE>

TABLE OF CONTENTS

<TABLE>
<S>                                                                            <C>
1.       DEFINITIONS......................................................      1

2.       OTHER AGREEMENTS.................................................      8

3.       PRODUCT PLAN.....................................................      9

4.       CONDITION PRECEDENT..............................................      9

5.       CONSIDERATION....................................................      9

6.       REGULATORY MATTERS...............................................     12

7.       TECHNOLOGY TRANSFER AND LICENCE..................................     13

8.       MANUFACTURE......................................................     13

9.       QUALITY CONTROL TESTING..........................................     14

10.      RECORDS AND INSPECTIONS..........................................     15

11.      MANUFACTURE OF COMMERCIAL SUPPLIES...............................     15

12.      TERM AND TERMINATION.............................................     16

13.      FORCE MAJEURE....................................................     17

14.      CONFIDENTIALITY..................................................     17

15.      INDEMNIFICATION..................................................     19

16.      NOTICES..........................................................     20

17.      FURTHER ASSURANCES...............................................     21

18.      ASSIGNMENT.......................................................     21

19.      THIRD PARTY RIGHTS...............................................     21

20.      ENTIRE AGREEMENT.................................................     22

21.      GENERAL..........................................................     22

22.      ARBITRATION......................................................     23

23.      GOVERNING LAW....................................................     24
</TABLE>

<PAGE>

AGREEMENT dated December 3, 2003

PARTIES:

(1)      CRITICAL THERAPEUTICS, INC a company duly-incorporated and existing
         under the laws of the State of Delaware whose principal place of
         business is at 675 Massachusetts Avenue, Cambridge, MA 02139, USA
         ("CTI"); and

(2)      JAGOTEC AG, a company duly incorporated and existing under the laws of
         Switzerland whose principal place of business is at Eptingerstrasse 51,
         Ch-4132, Muttenz, Switzerland ("SkyePharma").

INTRODUCTION:

(A)      By an agreement dated 3 October 1996 (the "Abbott Licence") SkyePharma
         granted Abbott an exclusive, worldwide right and licence under certain
         patents and know-how to make, have made, import, use, offer for sale,
         market, distribute and sell Products (as defined below) with the right,
         subject to SkyePharma's consent, to sub-licence such rights.

(B)      Abbott intends to grant CTI a licence (the "CTI Licence") to develop
         and commercialise the Product under intellectual property owned by or
         licensed to Abbott including intellectual property licensed to Abbott
         under the Abbott Licence.

(C)      SkyePharma has agreed to consent to the sub-licence to CTI pursuant to
         the CTI Licence and to provide certain services to CTI in connection
         with obtaining registrations for products and the manufacture of
         clinical supplies and samples of Product on the terms of this
         Agreement.

IT IS AGREED as follows:

1.       DEFINITIONS

         In this Agreement, unless the context otherwise requires:

         "Abbott"                  means Abbott Laboratories of 100 Abbott Park
                                   Road, Abbott Park, Illinois, 60064-3500, USA.

         "Abbott Licence"          has the meaning ascribed to it in the
                                   Introduction.

         "Abbott Technology"       means the Product Know-how in the possession
                                   of or controlled by Abbott or any of its
                                   Affiliates as at the Effective Date and
                                   relating to or of use in the manufacture of
                                   Products or that is subsequently made
                                   available to CTI pursuant to the CTI
                                   Agreement.

                                       1
<PAGE>

         "Act"                     means the US Federal Food, Drug and Cosmetic
                                   Act of 1938, the Public Health Service Act of
                                   1944 and the regulations promulgated under
                                   that Act, as may be amended from time to
                                   time.

         "Affiliate"               means any entity in which the party has a
                                   direct or indirect equity or income interest
                                   ownership of at least fifty percent (50%) or
                                   more, or any entity which, directly or
                                   indirectly, through one or more
                                   intermediaries, controls, is controlled by or
                                   is under common control with that party. For
                                   the purpose of this definition, "control"
                                   means the possession, directly or indirectly,
                                   of the power to direct the management or
                                   policies of an entity, whether through the
                                   ownership of voting securities, by contract
                                   relating to voting rights or corporate
                                   governance, or otherwise and the terms
                                   "controlled by" and "under common control
                                   with" have corresponding meanings.

         "Agency"                  means any applicable supra-national, federal,
                                   national, regional, state, provincial or
                                   local regulatory agencies, departments,
                                   bureaus, commissions, councils or other
                                   government entities regulating or otherwise
                                   exercising authority with respect to the
                                   manufacture or distribution, use or sale of
                                   the Product, including the FDA.

         "API"                     Means the active pharmaceutical ingredient
                                   zileuton (ABT-077) to be used in the
                                   manufacture of Product.

         "Applicable Laws"         means the Act and other applicable laws,
                                   rules, regulations, including any rules,
                                   regulations, guidelines or other requirements
                                   of any Agency, that may be in effect from
                                   time to time in the US or such other
                                   countries as may be agreed pursuant to Clause
                                   3.2.

         "Batch"                   means 1,200,000 tablets of the Product that
                                   is intended to be of uniform character and
                                   quality, within specified limits, and is
                                   produced during a single cycle of manufacture
                                   and is designated by a unique batch number.

         "Batch Records"           means the set of detailed manufacturing
                                   process instructions and data prepared to
                                   establish that a particular Batch has been
                                   manufactured according to cGMP.

         "Business Day"            means a day not being a Saturday or Sunday on
                                   which banks are generally open for business
                                   in the US and/or Switzerland.

                                       2
<PAGE>

         "cGMP"                    means the Current Good Manufacturing
                                   Practices as defined from time to time under
                                   the Act and other Applicable Laws including
                                   the Current Good Manufacturing Practices set
                                   forth in 21 C.F.R. 210 and 21 C.F.R. 211 and
                                   relevant FDA guidance documents; and to the
                                   extent applicable European Community
                                   Directive 91/356/EEC, Directive 2001/20/EC,
                                   Directive 2001/83/EC and all relevant
                                   implementations of such directives and
                                   relevant guidelines including the EC
                                   Guidelines.

         "Clinical Supplies"       has the meaning ascribed to it in Clause 8.1.

         "CMC Data"                means the chemistry, manufacturing and
                                   controls data or, as the case may be, the
                                   product specifications, manufacturing
                                   formulae and processing instructions required
                                   by Applicable Laws, including, (i) in the
                                   case of an application for approval to
                                   conduct clinical research under an IND, 21
                                   C.F.R. Section 312.23(a)(7), and, to the
                                   extent that it is applicable, European
                                   Community Directive 2001/20/EC; or (ii) in
                                   relation to a NDA, 21 C.F.R.Section
                                   314.50(d)(1) or, to the extent that they are
                                   applicable, the Quality Overall Summary
                                   section 2.3 of Module 2 and Module 3 of the
                                   Common Technical Document developed and
                                   agreed by the International Conference on
                                   Harmonisation of Technical Requirements for
                                   Registration of Pharmaceuticals for Human Use
                                   (ICH) or Part I, Module 3 of Annex 1 to
                                   Directive 2001/83/EC and the EC Guidelines.

         "Confidential             in relation to a party, any and all technical
         Information"              and commercial materials and information and
                                   know-how, which is proprietary or
                                   confidential in nature including, without
                                   limitation, know how, trade secrets,
                                   specifications, products, processes,
                                   services, contracts, business methods or
                                   practices, pricing techniques and
                                   information, financial information,
                                   intellectual property and ideas which, at the
                                   time or times concerned, are not generally
                                   known to third persons and is identified by
                                   that party as confidential.

         "COPD"                    means chronic obstructive pulmonary disease.

         "CTI Licence"             has the meaning ascribed to it in the
                                   Introduction.

                                       3
<PAGE>

         "Drug Master File"        means a drug master file providing detailed
                                   information about the facility, the equipment
                                   and manufacturing processes relating to the
                                   API and such other information as required by
                                   Applicable Laws, including 21 C.F.R. Section
                                   314.420 and to the extent applicable any
                                   equivalent requirement in under Applicable
                                   Laws including as required by the Committee
                                   for Proprietary Medicinal Products Note for
                                   Guidance on the European Drug Mater File
                                   Procedure for Active Ingredients.

         "EC Guidelines"           means Volume 4 of the Rules Governing
                                   Medicinal Products in the European Union:
                                   Medicinal Products for Human and Veterinary
                                   Use: Good Manufacturing Practices.

         "Effective Date"          means the date on which the conditions set
                                   out in Clause 4.1 are satisfied.

         "Equipment"               means any equipment or machinery used by
                                   SkyePharma in the manufacturing of Product or
                                   the holding or quality control testing of any
                                   Product, bulk API, excipients or packaging
                                   components.

         "Facility"                means the SkyePharma facility located in
                                   Lyons, France at which the Non-Commercial
                                   Supplies are manufactured.

         "FDA"                     means the United States Food and Drug
                                   Administration and any successor agency.

         "Force Majeure"           means in relation to either party any
                                   circumstances beyond the reasonable
                                   control of that party including any strike,
                                   lock-out, or other form of industrial action,
                                   act of God, war, act of terrorism, riot,
                                   accident, fire, flood, explosion or
                                   government action.

         "Fully Allocated"         means the fully-burdened cost of
                                   manufacturing Products, including the cost of
                                   (i) raw materials, (ii) direct labor of
                                   SkyePharma employees or its Affiliate's
                                   employees (including basic wages, labor and
                                   related payroll taxes and benefits) incurred
                                   or spent in the actual production, labeling
                                   and packaging of Product, including without
                                   limitation for quality assurance and
                                   manufacturing facility operations, and (iii)
                                   overhead of SkyePharma and its Affiliates
                                   (including operating expenses, indirect labor
                                   and related payroll taxes and benefits,
                                   depreciation, applicable taxes, insurance,
                                   repairs and maintenance, supplies) incurred
                                   or spent in support of the actual production,
                                   packaging and labeling of Product, but not
                                   for cost of any unused manufacturing

                                       4
<PAGE>

                                   capacities that SkyePharma may have in excess
                                   of the requirements contained in the
                                   forecasts provided by CTI, and, in the case
                                   of (ii) and (iii) above, excluding taxable
                                   benefits, remuneration based on profitability
                                   or bonuses, and (iv) transportation, storage,
                                   non-reimbursable import or export taxes of or
                                   for Product as incurred or spent by
                                   SkyePharma or its Affiliates in connection
                                   with the supply of Product pursuant to the
                                   terms of this Agreement and the Manufacturing
                                   Agreement (as defined in Section 11.1), all
                                   as determined in accordance with generally
                                   accepted accounting principles consistently
                                   applied.

         "Geomatrix System"        means SkyePharma's novel pharmaceutical
                                   technology for the controlled release of
                                   active substances, and related technology
                                   which utilises a hydrophilic drug-containing
                                   matrix tablet to control the release of an
                                   active substance through the use of one or
                                   more barrier layers, as disclosed in Product
                                   Know-how and claimed in the SkyePharma
                                   Patents.

         "IND"                     means an investigational new drug application
                                   filed with the FDA for authorisation to
                                   commence human clinical trials.

         "Marketing Approval"      means the approvals issued by any Agency in
                                   accordance with any procedures as may be
                                   required by Applicable Law to market the
                                   Product in the relevant country.

         "NDA"                     means an application for approval to market a
                                   drug as required under the Act and the
                                   regulations promulgated under the Act or any
                                   equivalent application as required by
                                   Applicable Laws.

         "NDA Supplies"            Has the meaning ascribed to it in Clause 8.1.

         "Net Sales"               means the gross invoiced amounts from the
                                   transfer for value (cash or otherwise) of
                                   Products in any country by or on behalf of
                                   CTI, its Affiliates and, solely in relation
                                   to Section 5.5(b), its sub-licensees, to an
                                   independent third party (including, without
                                   limitation, distributors) after obtaining all
                                   necessary government approvals to such sale,
                                   less where factually applicable and in
                                   accordance with general and customary trade
                                   practices:

                                   (a)       importation, handling, special
                                             outbound packing, transportation
                                             and insurance charges, separately
                                             billed to the customer or pre-paid;

                                       5
<PAGE>

                                   (b)       sales, use, excise, turnover,
                                             inventory, value added and similar
                                             taxes and/or duties specifically
                                             imposed upon the production,
                                             importation, use or sales of
                                             Product actually incurred by CTI,
                                             but not including income tax;

                                   (c)       offered and taken trade, quantity
                                             and cash discounts, rebates,
                                             commissions, charge-backs granted
                                             to drug wholesalers, management
                                             fees to group purchasing
                                             organisations, price reductions,
                                             retroactive or otherwise, imposed
                                             by governments or government
                                             agencies, and distribution fees in
                                             amounts customary to the trade and
                                             as required to do business in that
                                             country; and

                                   (d)       allowances, adjustments, direct and
                                             indirect credits and refunds,
                                             including price adjustments,
                                             granted to customers on account of
                                             rejections or returns of defective,
                                             damaged, recalled or outdated
                                             Product or on account of
                                             retroactive price reductions
                                             affecting the pricing of such
                                             Products.

         "Non-Commercial
         Supplies"                 means Clinical Supplies and NDA Supplies.

         "Product"                 means the dosage forms of a finished product
                                   containing ABT-077 as the sole therapeutic or
                                   prophylactic active ingredient, in a matrix
                                   tablet using the Geomatrix System.

         "Product Know-how"        means all non-patented information and
                                   technical data which is not generally known,
                                   including patent application information not
                                   yet in the public domain, formulae,
                                   formulations, procedures, protocols,
                                   processes, techniques, and results of
                                   experimentation, development and testing,
                                   which is or can reasonably be viewed as
                                   necessary or useful in the development,
                                   formulation, manufacture, use, marketing,
                                   sale or application for regulatory approval
                                   in order to market and distribute Products.

         "Product Plan"            means the Zileuton Revised Plan and Timeline
                                   set out in Schedule 1.

         "Quality Agreement"       means a written agreement describing the
                                   obligations of the parties with regards to
                                   compliance, quality systems, and testing and
                                   Release of Product as may be required by
                                   Applicable Laws.

                                       6
<PAGE>

         "Quarter"                 each three calendar-month period ending on
                                   31st March, 30th June, 30th September and
                                   31st December in each year.

         "Registrations"           means any and all technical, medical and
                                   scientific licences, registrations,
                                   authorisations and/or approvals of the
                                   Product (including clinical research
                                   authorization, manufacturing approvals and
                                   authorisations, Marketing Approvals,
                                   manufacturing facility approvals or
                                   authorizations, and pricing, third party
                                   reimbursement and labelling approvals) that
                                   are required by any Agency for the
                                   manufacture, distribution, use or sale of the
                                   Product in any country, as amended or
                                   supplemented from time to time.

         "Release"                 means quality assurance review of all
                                   Manufacturing documentation related to a
                                   Batch, and confirmation that a particular
                                   Batch has been manufactured according to the
                                   Batch Records and cGMP, and meets all
                                   Specifications.

         "SkyePharma Patents"      means, to the extent that they contain a
                                   Valid Claim covering the Geomatrix System or
                                   the use of the Geomatrix System with
                                   Products:

                                   (a)       the patents and applications
                                             specified in Schedule 2

                                   (b)       any other patents or patent
                                             applications filed and/or otherwise
                                             pending during the term of this
                                             Agreement and owned by or licensed
                                             to SkyePharma; and

                                   (c)       any and all re-issues,
                                             reexaminations, substitutions,
                                             confirmations, renewals,
                                             extensions, continuations,
                                             continuations-in-part or divisions
                                             of such patents or patent
                                             applications.

         "Specifications"          means the performance parameters to which the
                                   Non-Commercial Supplies, ingredients and
                                   packaging components must comply to be
                                   considered acceptable including all written
                                   instructions, specifications, formulae
                                   procedures, tests and standards for the
                                   Product, including the requirements of all
                                   Registrations, as adopted pursuant to Clause
                                   8.2 or as amended or supplemented from time
                                   to time in accordance with Clause 8.6.

         "Stability Tests"         means those tests necessary to establish the
                                   storage conditions and expiry date of the
                                   Product required by 21 C.F.R. 211.137 and 21
                                   C.F.R. 211.166 or any other Applicable Laws
                                   including Part I, Module 3 of Annex 1 to
                                   Directive 2001/83/EC.

                                       7
<PAGE>

         "US"                      means the United States of America.

         "Valid Claim"             means a claim to the Geomatrix System, or the
                                   use of that system with Products, of any
                                   issued, unexpired patent which is contained
                                   within the SkyePharma Patents and which has
                                   not been held invalid, unpatentable or
                                   unenforceable by a final decision, which
                                   decision is unappealed or unappealable, of a
                                   court of competent jurisdiction or of an
                                   administrative agency having authority over
                                   patents in that jurisdiction.

         "Year"                    means a calendar year running from 1 January
                                   to 31 December.

1.2      Unless otherwise expressly stated, reference to the Introduction, a
         Clause, Schedule or Exhibit is to the Introduction to, a Clause of, or
         a Schedule or Exhibit to, this Agreement and references in any Schedule
         to a Paragraph is to a paragraph in that Schedule.

1.3      The Introduction, Exhibits and Schedules form part of this Agreement
         and will have the same force and effect as if expressly set out in the
         body of this Agreement and any reference to this Agreement will include
         the Introduction, Exhibits and the Schedules.

1.4      The Index and Clause headings are for convenience only and will not
         affect the interpretation of this Agreement.

1.5      In this Agreement, any phrase introduced by the terms "include" or any
         similar expression and will be construed as illustrative and will not
         limit the sense of the words proceeding them.

1.6      In this Agreement, unless the context otherwise requires:

         (a)      use of the singular is deemed to include the plural and vice
                  versa;

         (b)      use of any gender is deemed to include every gender; and

         (c)      reference to a person includes a natural person, a firm, a
                  corporation, a partnership, a trust, an association, an
                  organisation and any other body or entity whether or not
                  having separate legal personality.

1.7      Any undertaking by any of the parties not to do any act or thing shall
         be deemed to include an undertaking not to permit or suffer or assist
         the doing of that act or thing.

2.       OTHER AGREEMENTS

2.1      This Agreement supersedes the binding heads of terms between the
         parties dated September 30, 2003 which on execution of this Agreement
         will be of no further force or effect.

                                       8
<PAGE>

2.2      This Agreement is without prejudice to the Abbott Licence or the CTI
         License, each of which remains in full force and effect. For the
         avoidance of doubt no provision of this Agreement shall effect:

         (a)      the obligations of either Abbott or SkyePharma under the
                  Abbott Licence; or

         (b)      the obligations of CTI to make payments to Abbott in
                  accordance with the CTI Licence.

3.       PRODUCT PLAN

3.1      The timelines and procedures for obtaining Registrations for the
         Product in the US and transferring the Abbott Technology are set out in
         the Product Plan. Each of the parties will use its reasonable
         endeavours to adhere to the Product Plan and will co-operate with the
         other party in the implementation of the Product Plan.

3.2      The Product Plan may only be amended with the written consent of both
         parties. Notwithstanding anything to the contrary in the foregoing, if
         the Product Plan is amended by CTI to include a country outside the US,
         or CTI otherwise gives SkyePharma not less than 3 months written notice
         that it will be applying for Registrations in a country outside the US,
         references in this Agreement to Applicable Laws will upon elapse of
         said three month time period include the Applicable Laws in that
         country. In the absence of agreement by SkyePharma to the contrary,
         SkyePharma shall not be obliged to provide any assistance or incur any
         expense including, without limitation, support any development, assist
         in any regulatory approval or manufacture in respect of Product to be
         sold outside the US.

4.       CONDITION PRECEDENT

4.1      This Agreement will not come into effect until CTI and Abbott have
         executed the CTI Licence.

4.2      If the conditions set out in clause 4.1 have not been satisfied by 30
         November 2003 or such later date as SkyePharma may agree in writing
         this Agreement shall terminate without further liability to either
         party.

4.3      Subject to this Agreement becoming effective in accordance with Clause
         4.1, SkyePharma hereby consents for the purposes of Clause 2.1 of the
         Abbott Licence, to the grant to CTI by Abbott of an exclusive,
         worldwide sub-licence under the SkyePharma Patents and Product Know-how
         to manufacture, make, have made, import, use, offer for sale, market,
         distribute, have sold and sell Products in accordance with the CTI
         Licence.

5.       CONSIDERATION

5.1      CTI will make the following payments to SkyePharma:

                                       9
<PAGE>

         (a)      in consideration of the work done to date on the Product, a
                  non-refundable and non-reimbursable fee of seven hundred and
                  fifty thousand dollars (US$ 750,000) to be paid on the
                  Effective Date;

         (b)      the sum of [**] dollars (US$ [**]) upon replication of the
                  Product release profile and establishing the Specifications as
                  set forth in the Product Plan;

         (c)      the sum of [**] dollars (US$ [**]) upon commencement of the
                  manufacture of the NDA Supplies at the Facility;

         (d)      [**] dollars (US$ [**]) within thirty (30) days following FDA
                  approval of the Product for COPD;

         (e)      an amount equal to [**] per cent ([**]%) of (i) the license
                  fee paid by CTI to Abbott under the CTI Licence and (ii) any
                  milestone payments made by CTI to Abbott on or after the
                  submission of an NDA (including, for the avoidance of doubt,
                  the milestone payment related to the achievement of such NDA
                  submission) pursuant to the CTI Licence, within thirty (30)
                  days following the date upon which such payment is due to
                  Abbott, provided that no part of such amounts shall fall due
                  for payment to SkyePharma, regardless if such payment is due
                  to Abbott, until the sum payable pursuant to Clause 5.1(b) has
                  fallen due for payment in accordance with that Clause. For
                  purposes of clarity no amount shall be due from CTI to
                  SkyePharma based upon royalty payments made by CTI to Abbott.

         (f)      a royalty on Net Sales at the rate of [**] per cent ([**]%) up
                  to [**] dollars (US$ [**]) in Net Sales in any Year. For the
                  avoidance of doubt no royalties shall be payable by CTI to
                  SkyePharma on Net Sales in excess of [**] dollars (US$ [**])
                  in any Year.

5.2      For the avoidance of doubt payments to SkyePharma pursuant to this
         Clause 5 shall be without prejudice to

         (a)      any payment due to SkyePharma pursuant to the Abbott Licence;

         (b)      any payment due to Abbott pursuant to the CTI Licence.

5.3      CTI will pay royalties on Net Sales in accordance with Clause 5.1(f) on
         a country by country basis in countries in which a Valid Claim exists
         from the date of first sale of any Product in a particular country
         until the expiry or lapse of all SkyePharma Patents in such country.

5.4      In calculating Net Sales, sales will be accounted for when shipped, and
         credits and refunds will be accounted for when booked. Sales or
         transfers between or among CTI and its Affiliates and sub-licensees
         will be excluded from the computation of Net Sales, except where such
         Affiliates or sub-licensees are end users; but Net Sales will subject
         to Clause 5.6 include the subsequent final sales to third parties by
         such Affiliates and sub-licensees.

                                       10
<PAGE>

5.5      If CTI sub-licenses any rights granted to it under the CTI Licence to
         any third party, CTI will pay to SkyePharma the amount that is equal to
         the greater of:

         (a)      the sum equal to [**] per cent ([**]%) of all net receipts
                  (including royalties payable to CTI in relation to
                  sub-licensees' sales of the Products and any other fees or
                  payments but excluding amounts received by CTI if and to the
                  extent such amounts fund research conducted by CTI) received
                  from any sub-licensee (excluding distributors); or

         (b)      a sum equal to [**] per cent ([**]%) of Net Sales by or on
                  behalf of any sub-licensee.

5.6      For so long as any royalties are payable under this Agreement, CTI will
         prepare a statement prepared in accordance with generally accepted
         accounting principles consistently applied showing the aggregate Net
         Sales by country in each Quarter. CTI will submit such statement to
         SkyePharma within 60 days of the end of the relevant Quarter together
         with remittance for the royalties due to SkyePharma in respect of that
         Quarter.

5.7      CTI will pay for all activities performed by SkyePharma pursuant to
         Clauses 6 to 10 (inclusive) on the basis of the actual time spent by
         SkyePharma at an hourly rate of US$ [**] plus all reasonable
         out-of-pocket expenses incurred by SkyePharma. At the end of each
         month, SkyePharma will submit an invoice to CTI detailing the time
         spent and expenses incurred in conducting its activities pursuant to
         Clauses 6 to 10 in the preceding month and CTI shall pay the amount due
         within 30 days of receipt of such invoice.

5.8      CTI shall during the term of this Agreement keep true and accurate
         records of all Net Sales and books of account containing all the data
         necessary for the calculation of royalties under this Clause 5. Such
         records and books of account shall, on reasonable notice having been
         given by SkyePharma, be open during normal working hours on any
         business day for inspection by SkyePharma or its duly authorised
         representative. If any such inspection reveals an underpayment of
         royalties due to SkyePharma in excess of 5%, the cost of such
         inspection shall be borne by CTI and promptly paid upon receipt of an
         invoice in respect of the same. If any such inspection reveals an
         overpayment of royalties due to SkyePharma, then such amount shall be
         deducted from royalty payments due in the next Quarter.

5.9      If any royalty or other amount due to SkyePharma is overdue then CTI
         shall pay interest thereon at an annual rate (but with interest
         accruing on a daily basis) at 2 per cent above the base rate of
         interest reported in The Wall Street Journal, Eastern Edition, for the
         date such amount was due, such interest to run from the date upon which
         payment of such sum became due until payment thereof in full together
         with such interest by CTI.

5.10     All sums due to SkyePharma under this Agreement:

         (a)      are, unless otherwise expressly stated, exclusive of any Value
                  Added Tax or equivalent sales tax which shall be payable (if
                  applicable) on submission by SkyePharma of valid Value Added
                  Tax invoices in respect thereof; and

                                       11
<PAGE>

         (b)      will be paid in full without any set-off, deduction or
                  withholding except any tax which CTI is required by law to
                  deduct or withhold, and if CTI is required by law to make any
                  such tax deduction or withholding, CTI shall do all in its
                  power which may be necessary to enable or assist SkyePharma to
                  claim exemption from or (if that is not possible) a credit for
                  the deduction or withholding under any applicable double
                  taxation or similar agreement from time to time in force, and
                  shall from time to time give SkyePharma proper evidence as to
                  the deduction or withholding any payment over the tax deducted
                  or withheld.

5.11     All royalties and other sums payable under this Agreement shall be paid
         in US dollars (US$). Where any royalties or other sums falling due in
         any period covered by the written statements referred to in Clause 5.7
         are calculated in a currency other than US$, they shall be converted
         into US$ by reference to the exchange rate published in the Midwest
         edition of the Wall Street Journal as of the close of business on the
         last Business Day of the applicable royalty period, or if no such rate
         is published the exchange rates for the applicable Quarter set out in
         International Statistics published by the International Monetary Fund
         on the last Business Day of the applicable royalty period.

6.       REGULATORY MATTERS

6.1      CTI represents and undertakes to SkyePharma that it will comply with
         the terms of the CTI Licence.

6.2      Without prejudice to Clause 6.1, CTI will use reasonable efforts
         (consistent with those that would be applied by other pharmaceutical
         companies) at its own expense, to develop and commercialise the
         Products. In particular, CTI will use reasonable efforts to:

         (a)      prepare, or obtain a right of reference to, a Drug Master File
                  for the API and will where required by Applicable Laws, file,
                  or arrange for the filing of, the Drug Master File with
                  appropriate Agencies;

         (b)      prepare and submit INDs and NDAs for the Product to the FDA,

         (c)      subject to clause 3.2, prepare and submit such other
                  Registrations as may be required by Applicable Laws (except
                  any Registration relating solely to the manufacture of the
                  Product by SkyePharma);

         (d)      provide to SkyePharma such information and assistance and
                  enter into such agreements as may be required by Applicable
                  Laws (including any Quality Agreements) as SkyePharma may
                  reasonably require for the purposes of applying for and
                  maintaining any Registration for the manufacture of the
                  Product, including providing SkyePharma with all reports,
                  authorisations, certificates, methodologies, and other
                  documentation in the possession or under the control of CTI
                  relating to the manufacture of the Product (or any component
                  thereof);

6.3      SkyePharma will assist CTI in gaining a US IND and an US Marketing
         Approval for the Product for use in the treatment/prevention of asthma
         and COPD and in particular will:

                                       12
<PAGE>

         (a)      assist CTI in the preparation of the CMC sections of the IND
                  and NDA submission;

         (b)      provide to CTI such information and assistance and enter into
                  such agreements as may be required by Applicable Laws
                  (including Quality Agreements), as CTI may reasonably require
                  for purposes of applying for and maintaining all Registrations
                  for the Product, including providing CTI with all reports,
                  authorisations, certificates, methodologies, and other
                  documentation in the possession or under the control of
                  SkyePharma relating to the manufacture of the Product (or any
                  component thereof);

         (c)      at CTI's request, attend meetings with the FDA in relation to
                  the Product or the Geomatrix System;

         (d)      provide such other services and assistance as CTI may
                  reasonably request and which SkyePharma agrees to undertake.

7.       TECHNOLOGY TRANSFER AND LICENCE

7.1      CTI will procure that SkyePharma has access to the Abbott Technology
         pursuant to the terms of the CTI Licence. Subject to CTI securing such
         access, SkyePharma will be responsible for transferring the Abbott
         Technology to the Facility.

7.2      Subject to Clause 2.2 and the other terms and conditions of this
         Agreement, CTI hereby grants to SkyePharma a non-exclusive,
         non-transferable, royalty free licence, under the intellectual property
         licensed to CTI under the CTI License to manufacture Product in
         accordance with Clause 8.

8.       MANUFACTURE

8.1      SkyePharma will manufacture such quantities of the Product as CTI may
         reasonably require in connection with clinical studies (the "Clinical
         Supplies") and obtaining regulatory approval to market the Product in
         the US and such other countries as may be agreed pursuant to Clause 3.2
         ("NDA Supplies"). CTI will give SkyePharma not less than four (4)
         months prior written notice of its requirements for Clinical Supplies
         and NDA Supplies and SkyePharma shall supply the Clinical Supplies and
         the NDA Supplies as required by CTI by the delivery date(s) specified
         in CTI's written notice of its requirements.

8.2      Not less than three (3) months prior to the commencement of the
         manufacture of the Non-Commercial Supplies, the parties shall agree on
         the Specification.

8.3      CTI will, at its own cost, provide SkyePharma such quantities of API
         (allowing for a production loss) as may be required to manufacture the
         Non-Commercial Supplies. CTI shall ensure that the API supplied to
         SkyePharma complies with cGMP and all Applicable Laws and is of a
         quality that allows SkyePharma to comply with its obligations under
         Clause 8.4 and shall deliver the required quantities of API to
         SkyePharma not less than four months prior to the anticipated date of
         delivery of the

                                       13
<PAGE>

         relevant batch of Non-Commercial Supplies. For the avoidance of doubt
         SkyePharma shall be under no obligation to manufacture Non-Commercial
         Supplies if CTI fails to deliver API in accordance with this Clause
         8.3.

8.4      SkyePharma will manufacture the Non-Commercial Supplies in compliance
         with:

         (a)      the Specifications;

         (b)      any applicable Registrations and Quality Agreement; and

         (c)      cGMP and all other Applicable Laws.

8.5      SkyePharma will obtain and maintain any regulatory approvals required
         by Applicable Laws to manufacture the Non-Commercial Supplies at the
         Facility and will ensure that the Facility and practices that shall be
         used in the performance of the manufacturing contemplated hereunder
         shall conform to the requirements of Applicable Laws, Batch Records and
         Specifications.

8.6      SkyePharma may not change the Specifications in any respect without the
         prior written consent of CTI. CTI may amend the Specifications and the
         CMC Data on giving SkyePharma not less than thirty (30) days notice of
         the proposed change if:

         (a)      the amendment is reasonably required for the purpose of
                  complying with Applicable Laws in which event CTI shall pay to
                  SkyePharma all reasonable direct costs and disbursements as
                  set out under clause 5.7.

         (b)      SkyePharma has given its prior written consent to the
                  amendment.

8.7      SkyePharma will deliver the Non-Commercial Supplies in bulk, EX
         (Incoterms 2000) the Facility.

9.       QUALITY CONTROL TESTING

9.1      SkyePharma will implement and maintain appropriate processing and
         control procedures, including the assignment of unique identification
         numbers to each Batch of Clinical Supplies and NDA Supplies and the
         maintenance of production records, quality control records, Batch
         Records and related information.

9.2      SkyePharma will take and retain, for such period as may be required by
         Applicable Law, samples of Clinical Supplies sufficient to perform at
         least full duplicate quality control testing, and will submit to CTI,
         upon CTI's written request, such samples and manufacturing and quality
         control records as CTI may reasonably request in order to implement
         analytical or other controls required by Applicable Law.

9.3      SkyePharma will perform Stability Tests for the Product in accordance
         with cGMP, the Registrations, Applicable Laws and ICH Guidelines for
         stability testing.

                                       14
<PAGE>

9.4      SkyePharma shall perform Release tests on Clinical Supplies and NDA
         Supplies in accordance with Applicable Laws and the terms of this
         Agreement and the Quality Agreement. SkyePharma shall provide to CTI a
         Certificate of Analysis with respect to the results for final drug
         release testing, as further specified in the Quality Agreement.

9.5      SkyePharma represents and warrants that it has engaged all staff
         necessary to comply with cGMP (whether as employees or as a third party
         contractor) including, those personnel required by 21 C.F.R. 211 and
         where applicable the Qualified Person as required by European
         Commission Directives 2001/83/EC and 91/356/EEC and all other
         Applicable Laws.

10.      RECORDS AND INSPECTIONS

10.1     All records, including originals thereof, relating to manufacturing of
         the Clinical Supplies and NDA Supplies shall be retained by SkyePharma
         for a period of at least five (5) years from the date of expiration of
         each Batch of Product to which such records pertain, or such longer
         period as may be required by Applicable Laws. SkyePharma will provide
         CTI with copies of such records, upon the written request of CTI.

10.2     CTI and its agents may, upon reasonable prior notice to SkyePharma,
         inspect the Facility, the Equipment and the Manufacturing of the
         Non-Commercial Supplies during normal business hours in order to
         ascertain compliance by SkyePharma with the terms of this Agreement.

10.3     If SkyePharma receives notice of any visit or inspection by any Agency
         of that part of the Facility engaged in the manufacture of Product,
         SkyePharma will promptly notify CTI of such visit or inspection and it
         will permit CTI or its agents to be present and participate in such
         visit or inspection. SkyePharma shall provide to CTI a copy of any
         report and other written communications received from such Agency in
         connection with such visit or inspection, and any written
         communications received from any Agency, or sent to any Agency by
         SkyePharma, relating to the Product or the production of Product, as
         soon as practicable and in any event within 3 Business Days after
         receipt and will to the extent practicable consult with CTI concerning
         the response to each such communication.

10.4     Each party will report to the other on a monthly basis any complaints
         received by the other relating to any Clinical Supplies, NDA Supplies,
         bulk active, or the excipients or packaging components used in the
         manufacture of the Product, including any product quality complaint.
         Each will notify the other within one (1) Business Day after its
         receipt of any notice of any event that may necessitate a field alert
         under Applicable Law.

10.5     CTI and SkyePharma will each maintain complaint files regarding the
         Clinical Supplies, including any product quality complaints. SkyePharma
         will cooperate with CTI to investigate and resolve such complaints and
         to take remedial action to avoid similar complaints in the future.

11.      MANUFACTURE OF COMMERCIAL SUPPLIES

                                       15
<PAGE>

11.1     Upon FDA approval of the Product, SkyePharma will manufacture
         commercial supplies of the Product in accordance with the Manufacturing
         Agreement ("Manufacturing Agreement"), the terms of which shall be
         negotiated in good faith by the Parties subject to Section 11.2 below.
         If there is any conflict between the terms of this Agreement and the
         terms of the Manufacturing Agreement, the terms of the Manufacturing
         Agreement shall prevail.

11.2     Notwithstanding anything in this Agreement to the contrary, the
         Manufacturing Agreement will contain, at a minimum, the following
         terms:

         (a)      The Manufacturing Agreement shall commence on or before the
                  date on which the Product is approved by the FDA for asthma;

         (b)      The Product will be supplied to CTI at Fully Allocated costs
                  plus [**]%;

         (c)      The Manufacturing Agreement will include [**]; and

         (d)      The term of the Manufacturing Agreement shall be for a minimum
                  period of 5 years.

12.      TERM AND TERMINATION

12.1     This Agreement will commence on the Effective Date and will continue
         unless the Agreement is terminated pursuant to Section 12.2; provided,
         however, that CTI's obligations under Clause 5 hereunder (other than
         those under Sections 5.1(a)-(d) and 5.7, except to the extent that the
         obligations have accrued due prior to such termination) shall survive
         any such termination of this Agreement.

12.2     This Agreement may be terminated forthwith at any time by either party
         ("the Terminating Party") on written notice served on the other party
         ("the Defaulting Party") if:

         (a)      the Defaulting Party is in breach of any of its obligations
                  hereunder and, in the case of a breach capable of remedy, it
                  shall not have been remedied by the Defaulting Party within 30
                  (thirty) days of written notice served by the Terminating
                  Party specifying the breach and requiring its remedy; or

         (b)      an encumbrancer takes possession or a receiver is appointed
                  over the whole or any part of the assets of the Defaulting
                  Party; or

         (c)      the Defaulting Party makes any voluntary arrangement with its
                  creditors, or has a petition for an administration order
                  presented against it; or

         (d)      the Defaulting Party goes into liquidation (otherwise than in
                  furtherance of a scheme for amalgamation or reconstruction);
                  or

         (e)      anything analogous to any of sub-clauses (b) to (d) under the
                  law of any relevant jurisdiction occurs in relation to the
                  Defaulting Party; or

                                       16
<PAGE>

         (f)      the Defaulting Party ceases, or threatens to cease to carry on
                  business.

12.3     In the event of termination of this Agreement SkyePharma shall cease
         manufacture of Product and shall, if requested by CTI and at CTI's
         expense, return any API held by SkyePharma to CTI or as it may direct.

12.4     In the event of termination of this Agreement each party shall, at the
         option of the other either:

         (a)      return the other party's Confidential Information and any
                  copies and extracts relating to it to the other party, or

         (b)      destroy or delete that Confidential Information and any copies
                  and extracts and certify to the other party in writing that it
                  has done the same.

12.5     Expiration or termination of this Agreement shall not relieve the
         parties of any obligation accruing prior to such expiration or
         termination. The rights and obligations of the parties under Clauses 5
         (including, without limitation, CTI's royalty obligations), 10.1, 10.4,
         10.5, 12.4, this 12.5, 14, 15, 16, 21, 22 and 23 shall survive
         expiration or termination of this Agreement.

13.      FORCE MAJEURE

In the event that the performance of the obligations of either party is
prevented, restricted or hindered by any event of Force Majeure such party:

         (a)      shall not be liable to the other party for any damages arising
                  from any breach of the terms of this Agreement caused by Force
                  Majeure; and

         (b)      shall immediately serve notice in writing on the other party
                  specifying the nature of the Force Majeure, its effect upon
                  the performance of this Agreement and the period of time in
                  which it anticipated to apply; and

         (c)      shall use its reasonable endeavours to overcome the Force
                  Majeure and resume its proper performance of its obligations
                  under this Agreement.

14.      CONFIDENTIALITY

14.1     Each party undertakes that it will:

         (a)      keep the existence of and the terms of this Agreement strictly
                  confidential;

         (b)      keep all Confidential Information of the other party which may
                  be within or come into its possession in connection with or
                  arising from this Agreement or which it may generate in
                  reliance on any Confidential Information so disclosed, secret
                  and confidential and it will not at any time for any reason
                  whatsoever disclose or permit the same to be disclosed to any
                  third party except as expressly provided in Clause 14.3;

                                       17
<PAGE>

         (c)      use the other party's Confidential Information only as
                  required to perform its obligations under this Agreement or as
                  agreed in writing with the disclosing party and for no other
                  purpose whatsoever.

14.2     The obligations of confidentiality contained in this Clause 14 will not
         apply to any part of the Confidential Information of the disclosing
         party which the recipient party can show by documentary evidence:

         (a)      was legally in its possession or control prior to the date on
                  which it was received from the other party free of any
                  obligation of confidentiality; or

         (b)      has come into the public domain or was obtained from a third
                  party, other than by breach of this Clause 14 or any other
                  duty of confidence.

14.3     Each party may disclose the other party's Confidential Information:

         (a)      if and to the extent that any part of that Confidential
                  Information is required to be disclosed by a regulatory or
                  government body or court of competent jurisdiction with power
                  to compel the disclosure provided the disclosing party
                  notifies the party who owns the Confidential Information of
                  such requirement, and to the extent possible uses reasonable
                  endeavours to keep such Confidential Information confidential
                  notwithstanding any such requirement; and

         (b)      to its agents, representatives, employees and consultants to
                  the extent necessary to facilitate the performance of its
                  obligations under this Agreement provided that any such
                  disclosure will be limited to what is absolutely necessary in
                  order to facilitate the performance of this Agreement and the
                  disclosing party procures that such third parties are bound by
                  obligations of confidentiality substantially similar to the
                  provisions of this Clause 14.

14.4     Notwithstanding Clause 14.1(a), CTI may disclose the existence of and
         terms of this Agreement (a) to its existing and potential investors if
         and to the extent reasonably required by those investors provided that
         such third parties are required to keep such information strictly
         confidential, and (b) where required, as reasonably determined by CTI,
         by applicable law, by applicable stock exchange or Nasdaq regulation or
         by order or other ruling of a competent court.

14.5     Without prejudice to any other rights or remedies that the Disclosing
         Party may have, the Receiving Party acknowledges and agrees that if the
         Confidential Information is used or disclosed other than in accordance
         with the terms of this Agreement, the Disclosing Party shall, without
         proof of special damage, be entitled to seek an injunction or other
         equitable relief for any threatened or actual breach of the provisions
         of this Clause, in addition to any damages or other remedy to which it
         may be entitled.

14.6     Neither party shall issue a press release or make any other
         announcement relating to this Agreement or its terms without the prior
         written consent of the other party, except as required by law.

                                       18
<PAGE>

14.7     The obligations of both parties under this Clause 14 will survive
         termination of this Agreement for any reason.

15.      INDEMNIFICATION

15.1     SkyePharma shall indemnify and hold harmless CTI, its Affiliates and
         their respective officers, directors, employees and agents (each a "CTI
         Party") from and against any and all losses, damages, liabilities or
         expenses (including reasonable legal fees and other costs of defence)
         ("Damages") in connection with any and all actions, suits, claims or
         demands that may be brought or instituted against any CTI Party by any
         third party relating to (a) personal injury or damage to property to
         the extent that such damages are caused by any negligent act or
         omission or wilful misconduct of SkyePharma or any of its employees or
         agents in manufacturing the Product, or (b) any breach by SkyePharma of
         its representations, warranties or obligations pursuant to this
         Agreement.

15.2     CTI shall indemnify and hold harmless SkyePharma, its Affiliates and
         their respective officers, directors, employees and agents (each an
         "SkyePharma Party") from and against any and all Damages in connection
         with any and all actions, suits, claims or demands that may be brought
         or instituted against any SkyePharma Party by any third party arising
         out of or resulting directly or indirectly from the use or distribution
         of the Non-Commercial Supplies for any purpose or otherwise in
         connection with the Product howsoever and whensoever arising except if
         and to the extent that such Damages arise out of a claim of
         infringement of a third party's patent rights by the Geomatrix System
         or are otherwise within the scope of the indemnification obligation of
         SkyePharma under Clause 15.1.

15.3     Each party agrees to give the other party prompt written notice of any
         claims made for which the other party might be liable under Clauses
         15.1 or 15.2, as the case may be. The indemnifying party shall have the
         opportunity to defend, negotiate, and settle such claims provided, that
         the indemnified party will be entitled to participate in the defence of
         such matter and to engage at its expense independent counsel. The party
         seeking indemnification will provide the indemnifying party with such
         information and assistance as the indemnifying party may reasonably
         request, at the expense of the indemnifying party.

15.4     Neither party will be responsible or bound by any settlement of any
         claim or suit made without its prior written consent provided that the
         indemnified party will not unreasonably withhold or delay such consent.

15.5     Nothing under this agreement shall require either party to indemnify
         the other for indirect or consequential losses or loss of profits
         howsoever caused.

15.6     CTI will maintain during the term of this Agreement and for a period of
         not less than 5 years after its termination for any reason:

         (a)      comprehensive general liability insurance written on an
                  occurrence basis with a combined single limit for bodily
                  injury and property damage of not less than US$1,000,000; and

                                       19
<PAGE>

         (b)      product liability coverage with a per claim limit of not less
                  than US$7,500,000;

         and in advance of clinical trials and/or marketing and sale of the
         Product to any third party the extent of cover shall be increased to
         such amounts as are customary and appropriate based upon standards
         prevailing in the industry at the time.

15.7     SkyePharma will maintain during the term of this Agreement and for a
         period of not less than 5 years after its termination for any reason
         comprehensive general liability insurance written on an occurrence
         basis with a combined single limit for bodily injury and property
         damage of not less than US$[**].

16.      NOTICES

16.1     Any notice or other communication in connection with this Agreement (a
         "NOTICE") must be in writing, in the English language, and may be
         delivered by hand (including by internationally recognised courier),
         prepaid airmail, facsimile transmission but not e-mail to the recipient
         at the address or facsimile number set out for that party in clause
         16.3 or such other address or facsimile number as the recipient has
         previously notified to the sender in accordance with this clause 16.

16.2     A Notice shall be deemed to have been duly served:

         (a)      if delivered by hand, at the time of delivery;

         (b)      if sent by pre-paid airmail at 10.00 a.m. (local time at the
                  place of destination) on the fifth Business Day after the day
                  it was put in the post;

         (c)      if sent by facsimile, at the time of transmission provided
                  that a confirming copy is sent by pre-paid airmail within 24
                  hours after transmission and that no notification informing
                  the sender that the message has not been delivered has been
                  received by the sender;

         provided that if the Notice is delivered by hand or transmitted by
         facsimile and such delivery or transmission occurs after 4.00 pm on a
         Business Day or on a day other than a Business Day, service will be
         deemed to occur at 9.00 am on the next following Business Day (such
         times and dates being local time at the address of the recipient).

16.3     The addresses and facsimile numbers for the parties are as follows:

         If to CTI:                 Critical Therapeutics, Inc.
                                    675 Massachusetts Ave, 14th Floor
                                    Cambridge, MA 02139
                                    Fax no. 617-354-9318

         With a copy to:            Steven D. Singer
                                    Hale and Dorr, LLP
                                    60 State Street

                                       20
<PAGE>

                                    Boston, MA, 02109
                                    Fax no.: 617-526-5000

         If to Jagotec:             Francesco Patalano, President
                                    Jagotec AG
                                    Eptingerstrasse 51
                                    CH - 4132 Muttenz
                                    Switzerland
                                    Tel no.: + 41 61 467 5555
                                    Fax no.: + 41 61 467 5500

         With a copy to:            Richard Robinski, General Counsel
                                    SkyePharma PLC
                                    105 Piccadilly
                                    London W1J 7NJ
                                    UK
                                    Tel no.: +44 (0) 20 7491 1777
                                    Fax no.: +44 (0) 20 7491 3338

17.      FURTHER ASSURANCES

The parties hereby undertake and agree to execute and deliver such other
documents, instruments and agreements and to take such other actions as may be
necessary, proper or appropriate to carry out the terms of this Agreement or to
comply with Applicable Laws. If either CTI or SkyePharma so requests in writing,
the parties will promptly file and record with any applicable office or
authority a copy or memorandum of this Agreement and any other agreement
granting SkyePharma rights to manufacture the Products for CTI.

18.      ASSIGNMENT

18.1     Except as set out in Clause 18.2, neither party may without the prior
         written consent of the other party assign the benefit or delegate the
         burden of this Agreement or otherwise sub-contract, transfer, charge or
         deal in any other manner with this Agreement or any of its rights and
         obligations under it, or purport to do any of the same.

18.2     Notwithstanding Clause 18.1, (a) SkyePharma shall be entitled to assign
         its rights under this Agreement to SkyePharma PLC or any subsidiary of
         SkyePharma PLC from time to time provided that SkyePharma shall procure
         that any subsidiary to whom it assigns any of its rights under this
         Agreement shall assign such rights back to SkyePharma immediately prior
         to its ceasing to be a subsidiary of SkyePharma PLC provided that such
         assignment shall not relieve SkyePharma of any of its obligations under
         this Agreement, and (b) CTI shall be entitled to assign its rights
         under this Agreement to an Affiliate or in connection with the sale of
         all or substantially all of the business and assets of CTI to which the
         subject matter of this Agreement pertains.

19.      THIRD PARTY RIGHTS

                                       21
<PAGE>

19.1     This Agreement does not create any right enforceable by any person who
         is not a party, whether pursuant to the Contracts (Rights of Third
         Parties) Act 1999 or otherwise, except that:

         (a)      the rights under Clauses 15.1 and 15.2 may be enforced by the
                  parties referred to in those Clauses subject to and in
                  accordance with the terms of Clauses 13 and the Contracts
                  (Rights of Third Parties) Act 1999; and

         (b)      a person who is the permitted successor to or assignee of the
                  rights of a party is deemed to be a party to this Agreement
                  and the rights of such successor or assignee shall, subject to
                  and upon any succession or assignment permitted by this
                  Agreement, be regulated by the terms of this Agreement.

19.2     Notwithstanding that any term of this Agreement may be or become
         enforceable by a person who is not a party to it, the terms of this
         Agreement or any of them may be varied, amended or modified or this
         Agreement may be suspended, cancelled or terminated by agreement in
         writing between the parties or this Agreement may be rescinded, (in
         each case) without the consent of any such third party.

20.      ENTIRE AGREEMENT

20.1     This Agreement and the documents referred to in it constitute the
         entire agreement between the parties relating to their subject matter,
         and supersede all prior written or oral agreements, representations or
         understandings between the parties relating to that subject matter.

20.2     Each party confirms that, in agreeing to enter into this Agreement, it
         has not relied on any representation, warranty, collateral contract or
         other assurance except those set out in this Agreement and to the
         extent any previous representation, warranty, collateral contract or
         assurance was made to a party, that party waives all rights and
         remedies in respect of it. Nothing in this Agreement will operate to
         limit or exclude a party's liability for fraud.

20.3     All conditions, warranties and other terms implied by statute or common
         law are hereby excluded to the fullest extent permitted by law.

21.      GENERAL

21.1     Each party will pay its own costs and expenses incurred in connection
         with the preparation, negotiation and implementation of this Agreement
         and the documents referred to in this Agreement.

21.2     Nothing in this Agreement is intended to or will operate to create a
         partnership or joint venture of any kind between the parties, or to
         authorise either party to act as agent for the other, and neither party
         will have authority to act in the name or on behalf of or otherwise to
         bind the other in any way (including but not limited to the making of
         any representation or warranty, the assumption of any obligation or
         liability and the exercise of any right or power).

                                       22
<PAGE>

21.3     No variation or waiver of any of the terms of this Agreement shall be
         binding unless set out in writing, expressed to amend this Agreement
         and signed by the parties or their duly authorised representatives.

21.4     No failure or delay by any party to exercise any right, power or remedy
         will operate as a waiver of it nor will any partial exercise preclude
         any further exercise of the same, or of some other right, power or
         remedy.

21.5     The rights and remedies provided by this Agreement are cumulative and
         (subject as otherwise provided in this Agreement) are not exclusive of
         any rights or remedies provided by law.

21.6     This Agreement may be executed in any number of counterparts and all
         the counterparts when taken together will constitute one agreement.
         Each party may enter into this Agreement by executing a counterpart.

21.7     This Agreement is drawn up and executed in the English language. If
         there is any conflict between this Agreement and any translation of
         this Agreement, the English language version of this Agreement will
         prevail.

21.8     If any provision of this Agreement, or any part of a provision of this
         Agreement, is found to be illegal, invalid or unenforceable the
         remaining provisions, or the remainder of the provision concerned,
         shall continue in effect.

21.9     Each party to this Agreement warrants and represents that such party
         has full authority and corporate power to enter into this Agreement, is
         aware of no legal, contractual or other restriction, limitation or
         condition that might affect adversely its ability to perform hereunder,
         and is in good standing under the laws of each jurisdiction in which it
         is incorporated or engages in business activities.

22.      ARBITRATION

22.1     In the event of a dispute, either party may demand that the dispute be
         resolved by the parties' chief executive officers by notifying the
         other in writing. Such notice will set out the nature of the dispute
         and the party's position. The other party will within 5 Business Days,
         submit a statement to the other setting out its position in relation to
         the dispute (the "Response"). The negotiations shall take place within
         10 Business Days of the Response being served. If a dispute cannot be
         resolved within 10 Business Days of commencement of negotiations or the
         second party fails to serve a Response either party may instigate
         arbitration in accordance with Clause 22.2.

22.2     Any dispute arising out of or in connection with this Agreement
         (including any question regarding its existence, validity or
         termination), which is not resolved pursuant to Clause 22.1 shall be
         referred to and finally (in the absence of substantial irregularity)
         resolved by arbitration under the London Court of International
         Arbitration ("LCIA") Rules which are deemed to be incorporated by
         reference into this Clause 22.2 and the following shall apply:

                                       23
<PAGE>

         (a)      the number of arbitrators in all disputes shall be three, one
                  to be appointed by each of the Parties and the third
                  arbitrator (who shall be the chairman of the arbitral
                  proceedings) being appointed according to the LCIA Rules;

         (b)      the seat or legal place of arbitration shall be London;
                  however, the location of arbitral proceedings may vary as the
                  Parties agree from time to time;

         (c)      the Parties shall cooperate in good faith to expedite (to the
                  maximum extent practicable) the conduct of any arbitral
                  proceedings commenced under this Agreement;

         (d)      any award shall be final and binding on the Parties and shall
                  be the exclusive remedy between the Parties regarding any
                  claims, counterclaims, issues, disputes or accountings
                  presented to the arbitral tribunal;

         (e)      the language to be used in the arbitral proceedings shall be
                  English.

22.3     Nothing in Clause 22 shall preclude either party from seeking interim
         or provisional relief, including a temporary restraining order,
         preliminary injunction or other interim equitable relief concerning a
         dispute, either prior to or during the arbitration, if necessary to
         protect the interests of such party.

23.      GOVERNING LAW

         This Agreement will be governed by and construed in all respects in
         accordance with English law.

               [Remainder of this Page Intentionally Left Blank.]

                                       24
<PAGE>

EXECUTED by the parties on the date specified at the beginning of this
Agreement.

JAGOTEC AG

By: /s/ Francesco Patalano
---------------------------------------

Name: Francesco Patalano

Position: Director

JAGOTEC AG

By: /s/ Susanne Halleisen
---------------------------------------

Name: Susanne Halleisen

Position: Director

CRITICAL THERAPEUTICS, INC.

By: /s/ Paul Rubin
---------------------------------------

NAME: DR. PAUL RUBIN

POSITION: PRESIDENT AND CHIEF EXECUTIVE OFFICER

                                       25
<PAGE>

                                   SCHEDULE 1

                     THE ZILEUTON REVISED PLAN AND TIMELINE

                                      [**]

                                       26
<PAGE>

                                   SCHEDULE 2

                                   THE PATENTS

                                      [**]

                                       27<PAGE>
         Confidential Materials omitted and filed separately with the
         Securities and Exchange Commission. Asterisks denote omissions.

(RHODIA LOGO)

                                                                   Exhibit 10.14

                             C O N F I D E N T I A L

                                 P R O P O S A L

                             VALIDATION OF ZILEUTON

                             Proposal ANNMTH25112003

                                  PREPARED FOR:

                               PAUL D. RUBIN, M.D.
                       CHIEF EXECUTIVE OFFICER & PRESIDENT
                              CRITICAL THERAPEUTICS
                        675 MASSACHUSETTS AVE. 14TH FLOOR
                               CAMBRIDGE, MA 02139
<PAGE>
(RHODIA LOGO)                                                       CONFIDENTIAL

                                    CONTENTS

<TABLE>
<CAPTION>
                                                      PAGE
                                                      ----
<S>                                                   <C>
1.       EXECUTIVE SUMMARY                              3
2.       PROPOSAL                                       4
3.       ESTIMATED PRICE/KEY ASSUMPTIONS                8
4.       SCOPE OF WORK/DELIVERABLES                    13
5.       TIMELINE                                      14
6.       COMMUNICATION                                 14
7.       CONTACT                                       15
8.       ACCEPTANCE                                    15
</TABLE>

                                  Proposal                          Page 2 of 17
<PAGE>
(RHODIA LOGO)                                                       CONFIDENTIAL

                              1. EXECUTIVE SUMMARY

Critical Therapeutics has agreed to purchase Zileuton CR and is currently
considering the purchase of Zileuton IR from Abbott Pharmaceuticals. Zileuton is
on the market for the treatment of Asthma. Critical Therapeutics has asked
Rhodia Pharma Solutions to review Abbott's process and provide a proposal
through validation and commercial manufacture of Zileuton.

Rhodia Pharma Solutions has considered the above requests and is pleased to
offer the following proposal based on the technical data provided by both
Critical Therapeutics and Abbott Pharmaceuticals. A timeline for the activities
described is provided for discussions between Rhodia Pharma Solutions and
Critical Therapeutics.

Based on the processing details provided, Rhodia Pharma Solutions feels we can
reach Critical's target at the [**] tonne scale of approximately $[**] /
kilogram.

The price is estimated to be $ [**]to provide material for formulation
development and to register Annan as the site of manufacture and validate the
process in A1. This price would be on a time and materials basis.

PHASE 1

Technical Transfer / Familiarisation Phase                    $ [**]
Manufacture of [**] batches Dudley Pilot Plant                $ [**]

PHASE 2

Cost for Analytical Validation and TT                         $ [**]

PHASE 3

Site Qualification & Validation                               $ [**]
Stability Studies                                             $ [**]
                                                              ------

TOTAL                                                         $ [**]
                                                              ------

                                  Proposal                          Page 3 of 17
<PAGE>
(RHODIA LOGO)                                                       CONFIDENTIAL

                                   2. PROPOSAL

The process used to prepare Zileuton is shown below:

                                      [**]

                FIG. 1 PROPOSED PILOT PLANT SYNTHESIS OF ZILEUTON

                                 Proposal                          Page 4 of 17
<PAGE>
(RHODIA LOGO)                                                       CONFIDENTIAL

Phase 1: Familiarisation Phase & Manufacture of up to [**]kg non-GMP

Abbott developed and scaled up this process in-house before licensing the
process to Critical. As part of transferring the process, Rhodia Pharma
Solutions would carry out laboratory and analytical familiarization.

Rhodia Pharma Solutions has identified raw material suppliers. Currently, a
Japanese supplier is holding enough 2ABT for the manufacture of [**]kg of
Zileuton. Further material is on a [**] lead-time. Methyl carbamate is on a [**]
lead-time.

The initial hazard evaluation work carried out by Rhodia Pharma Solutions has
uncovered a significant safety hazard with the Abbott process. The formation of
hydroxuyurea has been found to be unstable as low as sixty degrees centigrade.
In light of this there are some additional safety studies required to fit the
300 gallon stream located at Rhodia Pharma Solution's Dudley, England, facility.
This site is not the long-term home for Zileuton but provides comparatively
rapid entry. The hazard evaluation study has provided the basis for the
engineering design to support both the Dudley pilot plant and the A1 commercial
long-term home at Annan.

Some pilot plant refit work will be required in order to safely handle the
hydroxylamine. (This is related to ensuring that no metal components have the
potential to come into contact with hydroxylamine).

After completion of the lab familiarisation, up to [**] batches will be run to
yield approx [**] kg of Zileuton. This material will support the formulation
development work required on either CR or IR formulation. The material will be
milled by Micron Mills to an agreed particle size specification. Depending on
formulation requirements and the possible use of Abbott material for these
trials, a fourth batch could be manufactured in order to supply a minimum of
[**]kg of Zileuton.

                                 Proposal                          Page 5 of 17
<PAGE>
(RHODIA LOGO)                                                       CONFIDENTIAL

Details of the initial campaign are summarized below.

TABLE 1.  DETAILS FOR [**]KG CAMPAIGN.

<TABLE>
<CAPTION>
 Stage                   Equipment Size         Number of      Total Processing
                          (UK Gallons)            Batches            Days

<S>                      <C>                    <C>            <C>
   1                          [**]                 [**]              [**]
 TOTAL                                                               [**]
</TABLE>

Skye Pharma would use the material for tabletting development work for both IR
and CR programmes.

Phase 2: Analytical Validation

In order to support the IR programme, the timeline for analytical method
validation has been compressed. In addition full analytical method validation is
now planned to satisfy FDA requirements. Hence the methods for raw materials,
IPC and API will be formally validated prior to the validation campaign in A1 at
Annan and the stability programme being initiated. The API methods would be
transferred to Skye Pharma under the same protocol.

Overall, validation of the methods will require the synthesis and
characterisation of approximately sixteen reference standards. It is assumed
that the remaining will be purchased from USP or suppliers. The characterization
of these impurities is also required in order to develop new analytical methods
where necessary.

                                 Proposal                          Page 6 of 17
<PAGE>
(RHODIA LOGO)                                                       CONFIDENTIAL

Phase 3: Validation batches

The Annan site is especially equipped to handle API manufacture at scale. The
process presents a good fit for the A1 plant which is suitable for the
manufacture of up to [**] Mt of Zileuton.

After completion of Phase 1 & Phase 2, [**] batches, including [**] validation
batches, will be run to target a yield [**] kg of Zileuton. A [**]kg batch size
will be targeted. The [**] validation lots would be put on stability (6 months
at 40(degrees)C/75%RH, 24 months at 25(degrees)C/60%RH).

Some plant refit work will be required in order to safely handle the
hydroxylamine and the subsequent hydroxyurea reaction. This will provide a
purpose made facility for the long-term manufacture of Zileuton.

Details of the validation campaign are summarized below.

TABLE 1. DETAILS FOR VALIDATION CAMPAIGN.

<TABLE>
<CAPTION>
 Stage                   Equipment Size         Number of      Total Processing
                          (UK Gallons)            Batches            Days
<S>                      <C>                    <C>            <C>
   1                          [**]/                [**]              [**]
                              [**]
 TOTAL                                                               [**]
</TABLE>

The material would be used for NDA stability and for tabletting by Skye Pharma
for IND bioequivalence work, as well as by Skye Pharma for scale-up work in
Lyon.

                                 Proposal                          Page 7 of 17
<PAGE>
(RHODIA LOGO)                                                       CONFIDENTIAL

                       3. ESTIMATED PRICE/KEY ASSUMPTIONS

                         PHASE 1: FAMILIARISATION PHASE

<TABLE>
<CAPTION>
        Activity             Calendar Time    Resource Days     Resource          Estimated
                                                                                   Price ($)
<S>                          <C>              <C>               <C>               <C>
 Lab Familiarisation           [**]              [**]             [**]              [**]
  Analytical Support           [**]              [**]             [**]              [**]
  Hazards Evaluation           [**]              [**]             [**]              [**]
Materials and Columns                                                               [**]
                                                                                    $[**]
   ESTIMATED TOTAL             [**]
</TABLE>

                                 Proposal                          Page 8 of 17
<PAGE>
(RHODIA LOGO)                                                       CONFIDENTIAL

                        PHASE 1: [**]KG NON-GMP CAMPAIGN

<TABLE>
<CAPTION>
               Activity                Calendar Time    Resource Days        Resource           Estimated
                                                                                                 Price ($)
<S>                                    <C>              <C>              <C>                   <C>
       Pilot Plant Processing                                               Dudley Pilot
        (Including cleaning)                [**]              [**]             Plant               [**]

     Pilot Plant Safety Trials              [**]              [**]                                 [**]

           Safety Studies                   [**]              [**]              [**]               [**]

   Chemist Support on Pilot Plant           [**]              [**]              [**]               [**]

  Analytical / QA Support on Pilot          [**]              [**]              [**]               [**]
               Plant

           Documentation                    [**]              [**]              [**]               [**]

       Materials and Supplies                                                                      [**]

        Hydroxylamine Refit                 [**]                                                   [**]

              Milling                       [**]                            Micron Mills           [**]

          ESTIMATED TOTAL                                                                         $[**]
</TABLE>

         * NOTE THE PRICE FOR [**] BATCHES (MINIMUM [**]KG) WOULD BE $[**]

                                 Proposal                          Page 9 of 17
<PAGE>
(RHODIA LOGO)                                                       CONFIDENTIAL

                         PHASE 2: ANALYTICAL VALIDATION

<TABLE>
<CAPTION>
               Activity                Calendar Time    Resource Days        Resource           Estimated
                                                                                                 Price ($)

<S>                                    <C>              <C>                  <C>               <C>
Analytical method validation & tech
              transfer                      [**]              [**]              [**]               [**]

Synthesis of 16 reference substances        [**]              [**]              [**]               [**]

 Analytical characterization of 16
        reference substances                [**]              [**]              [**]               [**]

Purchased of 14 reference substances                                                               [**]

          ESTIMATED TOTAL                                                                         $ [**]

</TABLE>

                                 Proposal                          Page 10 of 17
<PAGE>
(RHODIA LOGO)                                                       CONFIDENTIAL

              PHASE 3: REGISTRATION & VALIDATION CAMPAIGN A1 ANNAN

<TABLE>
<CAPTION>
               Activity                Calendar Time    Resource Days        Resource           Estimated
                                                                                                 Price ($)
<S>                                    <C>              <C>                  <C>               <C>

             Processing
        (Including cleaning)                [**]              [**]               A1                [**]

   Chemist Support on Pilot Plant           [**]              [**]              [**]               [**]

  Analytical / QA Support on Pilot
               Plant                        [**]              [**]              [**]               [**]

         cGMP Documentation                 [**]              [**]              [**]               [**]

       Materials and Supplies               [**]                                                   [**]

        Plant Modifications                 [**]                                                   [**]

          ESTIMATED TOTAL                                                                         $[**]

</TABLE>

                           PHASE 3: STABILITY STUDIES

<TABLE>
<CAPTION>
  PROTOCOL                        PULLS IN MONTHS                  TOTAL DAYS                   TOTAL PRICE $

<S>                               <C>                              <C>                          <C>
  [**] batches accelerated             [**]                            [**]                       [**]

  [**] batches long term               [**]                            [**]                       [**]

  Program set-up                                                       [**]                       [**]

  ESTIMATED TOTAL                      [**]                                                      $[**]

</TABLE>

                                 Proposal                          Page 11 of 17
<PAGE>
(RHODIA LOGO)                                                       CONFIDENTIAL

                                 KEY ASSUMPTIONS

-     The process will operate in line with the batch records supplied (when
      available) in terms of processing time and yields.

-     Analytical methods will be supplied during the technical transfer; the
      price includes the formal validation of the methods

     Assumed as:

                  6 off HPLC methods
                  3 off GC for residual solvents
                  1 off XRD ( methodology undefined at present )

     Not included:

                  Microbiological testing, to be defined and outsourced.

                  Surface area and particle size as yet to define (equipment
                  needs may or may not required further purchase)

-     Stability indicating analytical methods are the same as the API release
      methods.

-     Stability methods are applied to [**] qualification batches. Both
      accelerated and real time programs will be run in parallel up to [**].

-     Raw materials are safe to handle.

-     Milling has been included for the initial [**]kg campaign and will be
      subcontracted to Micron Mills. Prices for milling latter campaigns and
      validation costs are yet to be defined. The milling will be taken in-house
      at suitable volume.

-     An estimate of price is given assuming suitable reference standards
      (fourteen) can be purchased commercially. Rhodia Pharma Solutions will
      manufacture the remaining sixteen standards. The manufacturing time is
      estimated given that the synthetic routes are unknown.

-     The qualification and validation campaign has been combined to reduce
      entry cost and provide the long-term commercial siting in A1 for Zileuton.

-     The 2ABT is on a [**] lead-time, an early go-ahead is recommended.

Chemist, analyst and QA time will be billed at the rate of $[**] per day.
Chemicals, services and supplies will be billed at cost plus [**]%. Pilot Plant
time will be billed at $[**] per day.

The actual charges for Critical Therapeutics account will be invoiced monthly,
with payment due net 30 days from invoice date. A down payment of $[**] is due
upon acceptance of this proposal. This payment will be credited towards the
final billable work performed on this project and will be used to purchase
starting materials for the successful completion of the project.

                                 Proposal                          Page 12 of 17
<PAGE>
(RHODIA LOGO)                                                       CONFIDENTIAL

                          4. SCOPE OF WORK/DELIVERABLES

RHODIA PHARMA SOLUTIONS WILL:

-     Perform tech transfer, laboratory evaluation and familiarisation
      experiments on the process.

-     Synthesise and characterise sixteen reference standards targeting 1-10
      grams of each with a minimum purity of 95%. Analyse the standards by HPLC,
      IR, NMR and MS.

-     Validate the analytical methods and for the API, carry out technology
      transfer to Skye Pharma.

-     Prepare approximately [**] kg of Zileuton non-cGMP conditions in the Pilot
      Plant at its Dudley, England facility.

-     Prepare approximately [**]kg of Zileuton under cGMP conditions in the A1
      Plant at its Annan, Scotland facility for site registration

-     Validate the Zileuton process during the same [**]kg campaign under cGMP
      conditions in the A1 Plant at its Annan, Scotland facility

-     Provide written status reports on a monthly basis with teleconferences
      and/or meetings to be organised as agreed appropriate.

-     Provide copies of master batch records used in the pilot plant.

-     Provide written reports summarising all phases of the work undertaken on
      the project.

-     After completion of the registration campaign, carry out a stability
      programme and provide a report.

-     Provide a hazard evaluation report.

CRITICAL THERAPEUTICS WILL:

-     Agree to a final product release specification prior to scale-up
      activities.

-     Provide any relevant health, safety, and environmental information.

-     Provide any hazard information pertaining to the process.

-     Provide any samples that are available to assist Rhodia Pharma Solutions
      in polymorph determinations and analytical support.

-     Provide batch records / development reports for the process and arrange
      for technical discussion / transfer with Abbott / SkyePharma.

                                 Proposal                          Page 13 of 17
<PAGE>
(RHODIA LOGO)                                                       CONFIDENTIAL

                                   5. TIMELINE

Upon acceptance by Critical Therapeutics of this proposal, work could begin
immediately at Rhodia Pharma Solutions. The initial [**]kg would be delivered in
parts, the first part delivered to Skye by [**]. The site
registration/validation campaign will be complete by [**].

                                6. COMMUNICATION

A Rhodia Pharma Solutions technical project manager will be appointed to handle
technology transfer and technical interface issues for the project. The Rhodia
Pharma Solutions product manager will coordinate all timeline and financial
aspects of the project with Critical Therapeutics and will be available for
discussions as required.

                                 7. TERMINATION

Either party shall be entitled to terminate this agreement before the project
has been completed by giving to the other party 90 days prior written notice of
termination.

Termination shall be effective on the expiration of the applicable notice period
(the Effective Termination Date).

All work performed by RPS prior to the Effective Termination Date of the project
shall be paid for by Critical Therapeutics at the estimated cost provided herein
prorated for the work performed to the Effective Termination Date. Any raw
material/capital expenses incurred and/ or committed by RPS prior to the
Effective Termination Date, or any expenditure required by RPS to return the
unit to its original condition prior to commencement of the capital project
shall be paid by Critical Therapeutics. RPS will seek to minimize all costs
associated with the reason for termination and will provide justification of the
expenditure to Critical Therapeutics.

                                 Proposal                          Page 14 of 17
<PAGE>
(RHODIA LOGO)                                                       CONFIDENTIAL
                                   8. CONTACT

For additional information or questions, please contact:

         Kim Thomson
         Product Manager
         Rhodia Pharma Solutions
         Dudley
         Northumberland
         England

         Phone:   00-44-191-250-4146
         Email:   kim.thomson@eu.rhodia.com

                                  8. ACCEPTANCE

Please indicate Critical Therapeutics acceptance of this proposal by returning a
signed copy or a purchase order, referencing Proposal. This proposal is valid
for 30 days.

CRITICAL THERAPEUTICS

By:    /s/ Trevor Phillips                             Date: 8/14/03
      ------------------------                               ------------

Name: Trevor Phillips
      ------------------------

                                 Proposal                          Page 15 of 17
<PAGE>
(RHODIA LOGO)                                                       CONFIDENTIAL

                                    APPENDIX
<TABLE>
<CAPTION>
           ABBOTT    CHEMICAL
           NUMBER      NAME          STRUCTURE     CAS NUMBER
<S>        <C>       <C>             <C>           <C>
1.          [**]       [**]            [**]           [**]
2.          [**]       [**]            [**]           [**]
3.          [**]       [**]            [**]           [**]
4.          [**]       [**]            [**]           [**]
5.          [**]       [**]            [**]           [**]
6.          [**]       [**]            [**]           [**]
7.          [**]       [**]            [**]           [**]
8.          [**]       [**]            [**]           [**]
9.          [**]       [**]            [**]           [**]
10.         [**]       [**]            [**]           [**]
11.         [**]       [**]            [**]           [**]
12.         [**]       [**]            [**]           [**]
13.         [**]       [**]            [**]           [**]
14.         [**]       [**]            [**]           [**]
15.         [**]       [**]            [**]           [**]
16.         [**]       [**]            [**]           [**]

</TABLE>

                                 Proposal                          Page 16 of 17
<PAGE>
(RHODIA LOGO)

                                    TIMELINE

                                      [**]

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