Document:

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                                                                    Exhibit 10.9

          Confidential Materials omitted and filed separately with the

         Securities and Exchange Commission. Asterisks denote omissions.

                           EXCLUSIVE LICENSE AGREEMENT

                                     BETWEEN

                                 MEDICEPT, INC.

                                       AND

                             PHENOME SCIENCES, INC.

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                           EXCLUSIVE LICENSE AGREEMENT

      This Agreement is made and entered into as of the date last written below
(the "Effective Date"), by and between MediCept, Inc., a Delaware corporation
(hereinafter referred to as "MediCept"), and Phenome Sciences, Inc., a
Massachusetts corporation (hereinafter referred to as "Phenome").

      WHEREAS, Phenome is the owner of certain intellectual property rights or
co-owner with the Beth Israel Deaconess Medical Center (hereinafter "BIDMC") or
with other parties, and has the right to grant exclusive licenses under said
intellectual property rights, subject only to a royalty-free, non-exclusive
license heretofore granted to the United States Government for those patents
developed with US. Government funding;

      WHEREAS, Phenome and BIDMC entered into a Cooperative Commercialization
Agreement, dated October 20, 1999 and an Amendment to the Cooperative
Commercialization Agreement dated December 15, 2000 (collectively, the "BIDMC
Agreement"), wherein the parties agreed that Phenome may act as the agent of
BIDMC in granting a license according to the provisions of the BIDMC Agreement
for the intellectual property assets jointly owned by Phenome and BIDMC,

      WHEREAS, Phenome and BIDMC desire to have the intellectual property rights
utilized in the public interest and are willing to grant a license to MediCept
thereunder on the terms and conditions described herein;

      WHEREAS, MediCept desires to obtain an exclusive license under the
intellectual property rights on the terms and conditions of this Agreement.

      NOW, THEREFORE, in consideration of the premises and mutual covenants
contained herein, the parties hereto agree as follows:

                                   ARTICLE I.

                                   DEFINITIONS

      For the purpose of this Agreement, the following words and phrases have
the meanings set forth below:

      1.1 "Affiliate" shall mean any company or other legal entity controlling,
controlled or under common control with MediCept. For purposes of the definition
of "Affiliate" the term "control" shall mean: (i) in the case of a corporate
entity, the direct or indirect ownership of at least fifty (50%) percent of the
stock or participating shares entitled to vote for the election of directors of
that entity; (ii) in the case of a partnership, the power customarily held by a
general partner to direct the management and policies of such partnership; or
(iii) in the case of a joint venture, whether in corporate, partnership or other
legal form, a more than nominal economic interest and managerial role.

      1.2 "Field of Use" shall mean therapeutic or nutraceutical products.

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      1.3 "First Commercial Sale" shall mean with respect to each country: (i)
the first sale of any Licensed Product by MediCept, following approval of such
Licensed Product's marketing by the appropriate government agency, if any such
approval is necessary, for the country in which the sale is to be made; or (ii)
when governmental approval is not required, the first sale in that country of
the Licensed Product.

      1.4 "Licensed Product" shall mean any product or part thereof, or process,
the manufacture, use or sale of which would infringe an issued, valid,
enforceable, unexpired claim, or a pending uncanceled claim, contained in a
patent within the Patent Rights.

      1.5 "MediCept" shall mean MediCept, Inc., and/or its successor(s) or
assignee(s) and/or its Affiliates.

      1.6 "Phenome" shall mean Phenome Sciences, Inc., and/or its successor(s)
or assignee(s) and/or its Affiliates.

      1.7 "BIDMC" shall mean the Beth Israel Deaconess Medical Center and/or its
successor(s) or assignee(s) and/or its Affiliates.

      1.8 "BIDMC Agreement" shall mean the Cooperative Commercialization
Agreement between Phenome and BIDMC, dated October 20,1999, as amended.

      1.9 "Net Sales" shall mean gross amount billed or invoiced by MediCept or
a Sublicensee for any Licensed Product in a bona fide arm's length business
transaction, less the sum of the following:

            (i)   Trade, cash, or quantity discounts that are customary in the
                  industry to the extent actually allowed and taken;

            (ii)  To the extent separately stated on purchase orders, invoices,
                  or other documents of sale, any taxes or other governmental
                  charges levied on the production, sale, transportation,
                  delivery or use of the Licensed Product, that is paid for or
                  on behalf of MediCept or its affiliates; and

            (iii) Amounts repaid or credited by reason of rejection or return.

      In the event that a Licensed Product is marketed as part of a bundle,
system, or kit that incorporates or includes other products, Net Sales shall be
computed using the average net selling price of the components when sold
separately. If any Licensed Product is sold only as part of a bundle, system, or
kit and is not sold separately, then Net Sales shall include only that part of
such sale reasonably allocable to the Licensed Product. In making such
allocations, primary consideration shall be given to the added value provided by
the Product as compared to the value of the bundle, system, or kit if sold
without it. Net Sales shall be determined from the books and records of MediCept
or a Sublicensee, maintained in accordance with generally accepted accounting
principles, consistently applied.

      1.10 "Patent Rights" shall mean all of the following which Phenome owns or
has rights to that relate to the Field of Use during the term of this Agreement:

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            (i)   The United States and foreign patent applications listed
                  herein or incorporated herein by reference, including U.S.
                  Provisional Patent Application Serial Number [**], filed [**],
                  entitled: [**], and the corresponding PCT Application filed on
                  [**], together with any continuations, continuations-in-part,
                  divisionals, substitutions, or extensions thereof;

            (ii)  The United States and foreign patents that issue from the
                  applications listed in (i) above, including any
                  re-examinations, re-issues, renewals, or extensions thereof;

            (iii) All later filed patent applications (i.e, filed by Phenome
                  after the Effective Date hereof) and the resulting patents,
                  which relate to (a) subject matter specifically described in
                  the patent and/or patent applications described herein or
                  incorporated herein by reference, (b) REPS Technology or (c)
                  REPS Technology Extensions.

      1.11 "Sublicensee" shall mean a person or entity unaffiliated with
MediCept to whom MediCept has granted an arm's length sublicense under this
Agreement.

      1.12 "NDA" shall mean new drug application as submitted to the United
States Food and Drug Administration, or a similar application submitted to any
foreign governmental agency whose business is to evaluate such applications.

      1.13 "Diligence Obligations" shall mean MediCept's diligent efforts to
develop the REPS Technology or REPS Technology Extensions.

      1.14 "REPS Technology" shall mean all information, data, know-how,
materials, inventions, trade secrets, registered and unregistered copyrights,
patents, patent applications (along with any continuation, continuation-in-part,
divisional, or substitute applications, and any re-issue or re-examinations of
such patents or patent applications), trade names, registered or unregistered
trademarks, and applications therefor and other intellectual property of any
kind, whether patented or unpatented, and rights under any research grants
related to the inventions claimed in the Patent Rights, including any
enhancements, updates, extensions, and improvements thereof, and all competitive
assessments of related technology, market analyses, and other intellectual
property related to any therapeutic or nutraceutical products developed from
therapeutic compositions comprising esters of pyruvate, e.g., alkyl, aralkyl,
alkoxyalkyl and carboxyalkyl esters, or analogs of pyruvate (e.g.
alpha-ketoacids) and their esters, and addressing any indication that are owned
jointly by Phenome and BIDMC and subject to the BIDMC Agreement as of the
effective date of that agreement, or thereafter developed in the performance of
Phenome's SBIR and DARPA grants.

      1.15 "REPS Technology Extensions" shall mean all information, data,
know-how, materials, inventions, trade secrets, registered and unregistered
copyrights, patents, patent applications, (along with any continuation,
continuation in-part, divisional, or substitute applications, and any re-issue
or re-examinations of such patents or patent applications), trade names,
registered or unregistered trademarks, and applications therefor and other
intellectual

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property of any kind, whether patented or unpatented, and rights under any
research grants related to the inventions claimed in the Patent Rights,
including any enhancements, updates, extensions, and improvements thereof, and
all competitive assessments of related technology, market analyses, and other
intellectual property related to any therapeutic or nutraceutical products
derived from therapeutic compositions that are owned or controlled by Phenome as
of the effective date of the Cooperative Commercialization Agreement or
thereafter developed in the performance of Phenome's SBIR and DARPA grants,
comprising:

            (i)   Any ester or amide of an alpha-ketoacid (including, for
                  example, pyruvate, alpha-ketobutyrate or
                  alpha-ketoglutatrate), e.g., alkyl, aralkyl, alkoxyalkyl and
                  carboxyalkyl esters, analogs of any of the foregoing, and
                  compositions containing the foregoing;

            (ii)  Pyruvate prodrugs, e.g., masked pyruvates other than ester
                  functionalities;

            (iii) Prodrugs of alpha-ketoacids (including pyruvate) e.g., masked
                  alpha-ketoacids in which the acid group is masked with a
                  moiety other than an ester (which is covered in i); and

            (iv)  Any combinations of compositions described in clauses (i),
                  (ii), or (iii) with agonists or synergists, including, for
                  example, dichloroacetate, and or other inhibitors of pyruvate
                  degradation and/or with non-covalent derivatives and
                  complexing or solubilizing agents, including, for example,
                  organic bases or amino acids such as ornithine and arginine.

                                  ARTICLE II.

                                      GRANT

      2.1 Phenome, itself and in its capacity as agent for BIDMC, hereby grants
to MediCept, free and clear of all encumbrances except as indicated above, the
worldwide right and exclusive license under the Patent Rights, the REPS
Technology, and the REPS Technology Extensions, to make, have made, use, and
sell the Licensed Products in the Field of Use until the expiration of the last
to expire of the Patent Rights, unless sooner terminated as provided in this
Agreement. Upon expiration of the last to expire Patent Right in a country,
Phenome grants to MediCept a fully-paid-up, royalty-free license to make, have
made, use, lease and sell the Licensed Products in the Field of Use in that
country.

      2.2 Notwithstanding anything to the contrary, Phenome and BIDMC each shall
retain a royalty-free, non-exclusive, irrevocable license to practice the Patent
Rights they own individually or jointly, for non-commercial research purposes
only with the understanding that any data or intellectual property resulting
from such activity that is with the scope of the Field of Use, shall be
automatically included in the REPS Technology or REPS Technology Extensions
licensed to MediCept, and shall be provided to MediCept for no additional
consideration.

      2.3 Notwithstanding anything to the contrary, the license granted
hereunder shall be subject to the rights of the United States government, if
any, under Public Laws 96-517, 97-226, and 98-620, codified at 35 U.S.C. sec.
200-212 and any regulations promulgated thereunder.

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      2.4 MediCept shall have access to, including the right to receive copies
of, all internal documents (including SBIR grant proposals, patent applications,
laboratory notebooks, drafts, etc.) relating to the REPS Technology.

      2.5 Phenome shall diligently complete all work under its existing Phase I
SBIR grant and DARPA grant, and shall provide to MediCept all data and
information developed thereunder.

      2.6 In order to establish exclusivity for MediCept, Phenome hereby agrees
that it shall not, without MediCept's prior written consent, apply for funds
from any other commercial party, or enter into a research and development
agreement, or grant a license to make, have made, use, lease and/or sell
Licensed Products in the Field of Use during the period of time in which this
Agreement is in effect, except as otherwise specified in this Agreement or as
required by law to grant rights to the United States Government.

      2.7 MediCept shall have the right to enter into sublicensing agreements
with respect to any of the rights, privileges and licenses granted hereunder,
subject to the terms and conditions hereof. Such sublicenses will terminate upon
the termination of MediCept's rights granted herein unless events of default are
cured by MediCept or Sublicensee within thirty (30) days of notification by
Phenome of default and/or as provided by the terms of this Agreement. In
accordance with its obligations under the Cooperative Commercialization
Agreement with BIDMC, Phenome shall have the right to review and approve all
such sublicenses, which approval shall not be unreasonably withheld. Such
approval shall be deemed to be given thirty (30) days from the date that
MediCept submits the sublicense to Phenome for review if Phenome fails to either
approve or provide comments to MediCept on the sublicense within the 30 day
period.

      2.8 MediCept agrees that any sublicense granted by it shall provide that
the obligations to Phenome of Articles II (Grant), V (Reports and Records), VII
(Infringement), VIII (Indemnification), IX (Representations and Warranties), X
(Governmental Regulations), XI (Patent Marking), XII (Dispute Resolution), XIII
(Term and Termination) XIV (Commercial Development and Non-Competition) and XV
(General Provisions) of this Agreement shall be binding upon the Sublicensee as
if it were a party to this Agreement.

      2.9 MediCept agrees to provide to Phenome a copy of each fully executed
sublicense agreement deleting economic terms when and as appropriate. MediCept
further agrees to forward to Phenome copies of any quarterly reports received by
MediCept from its Sublicensees which are pertinent to royalty accounting under
the applicable sublicense. Such reports shall be provided consistent with the
provisions of Section 4.1 and 5.3.

      2.10 MediCept shall advise Phenome in writing of any consideration other
than cash payments received from any Sublicensee. MediCept shall not accept from
any Sublicensee anything of value in lieu of cash payments to discharge
Sublicensee's payment obligations under any sublicense granted under this
Agreement, without the express written permission of Phenome, which permission
shall not be unreasonably withheld.

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      2.11 The license granted hereunder shall not be construed to confer any
rights upon MediCept by implication, estoppel or otherwise as to any technology
other than the Patent Rights, the REPS Technology and the REPS Technology
Extensions, except to the extent MediCept requires a License from Phenome or
BIDMC under any patents already issued, or patents issuing later with a right to
priority from an existing patent application, owned or controlled by Phenome or
BIDMC (and covered by the BIDMC Agreement), to practice the rights granted under
Section 2.1 of this Agreement.

      2.12 As a result of the BIDMC Agreement, Phenome has the right to act as
BIDMC's agent in granting the license to MediCept of their jointly owned
intellectual property assets. Any termination of the BIDMC Agreement will have
no effect on the rights and the obligations of Phenome and MediCept under this
Agreement, and are intended to survive the termination of the BIDMC Agreement
and, to the extent necessary, MediCept will be deemed to have a license directly
from BIDMC for its interest in the REPS Technology, but shall not be obligated
to make any payments directly to the BIDMC without MediCept's prior consent.

                                  ARTICLE III.

                                  DUE DILIGENCE

      3.1 MediCept shall use good faith and diligent efforts to accomplish the
milestones set forth in Article IV hereof and to substantially manufacture or
have manufactured, market, and distribute the Licensed Products in the United
States.

      3.2 Notwithstanding anything above to the contrary, MediCept's obligations
of due diligence under this Article III shall be met by MediCept's achievement
of the objectives and milestones set forth herein, as evidenced by the
following:

            (i)   The completion of a round of equity financing (which shall
                  include convertible debt) by MediCept on or prior to August 1,
                  2001, which provides immediate gross proceeds of not less than
                  $[**] ([**] dollars), and milestone-based commitments for
                  aggregate additional gross proceeds of not less than $[**]
                  ([**] dollars), payable on or before August 1, 2002;

            (ii)  Commencing on the first anniversary of the date of this
                  Agreement until the due date of the first milestone payment
                  set forth in Section 4.1 (ii) (a) below (but not later than
                  the seventh anniversary of the date of the Agreement) MediCept
                  shall invest not less than $[**] ([**] dollars) per annum in
                  research and development activities related to the REPS
                  Technology or the REPS Technology Extensions (which funds can
                  be derived from any source including government funding,
                  sponsored research, or otherwise); and

            (iii) MediCept shall diligently proceed to file new patent
                  applications for inventions within the REPS Technology
                  Extensions.

      3.3 MediCept shall use its best efforts to make an arm's length commercial
sale of the Product within [**] of the date on which first notice of FDA market
approval is received.

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      3.4 In the event that MediCept fails in any year to satisfy the diligence
obligations above, then either (1) MediCept's license to the REPS Technology and
REPS Technology Extensions shall terminate, or (2) by a date not later than the
anniversary date of this Agreement month (beginning with the second anniversary)
MediCept shall make a payment of $[**] ([**] dollars) to Phenome.

                                   ARTICLE IV.

                          ROYAL TIES AND OTHER PAYMENTS

      4.1 For exclusive licenses granted hereunder, MediCept shall pay to
Phenome the following amounts:

            (i)   An up front payment of one hundred three thousand dollars
                  ($103,000), upon receipt of equity financing, as set forth in
                  Section 3.2 (i), or by February 1, 2001, whichever is earlier.
                  If MediCept fails to make this up front payment by February 1,
                  2001, then this Agreement shall terminate without further
                  obligation of either party.

            (ii)  MediCept shall make the following one-time milestone payments
                  to Phenome within 30 days of the occurrence of the following
                  events ("Milestones"):

                  (a)   a $[**] payment upon the [**];

                  (b)   a $[**] payment upon the [**];

                  (c)   a $[**] payment upon the [**];

                  (d)   a $[**] payment upon the [**]; and

            (iii) MediCept shall pay [**]% royalty on Net Sales of Licensed
                  Products, provided that in the event MediCept licenses
                  technologies from third parties in order to make, use, or sell
                  a Licensed Product, then the royalty payments to Phenome shall
                  be reduced by an amount equal to [**]% of the payments due to
                  third parties; provided further that in no event shall the
                  royalty paid by MediCept to Phenome be reduced below [**]% of
                  the Net Sales. Royalties shall be payable at the end of each
                  calendar quarter, i.e., each March 31st, June 30th, September
                  30th and December 31st with respect to the Net Sales incurred
                  during the preceding calendar quarter.

            (iv)  MediCept shall pay a minimum royalty of $[**] per year
                  beginning in year 2006, payable by December 31st of each year
                  beginning in 2006. The minimum royalty shall be creditable
                  against royalties paid pursuant to Section 4.1(iii) and
                  payments made pursuant to Section 3.4 in subsequent years,
                  provided that these credits shall not reduce the royalties
                  under Section 4.1(iii) or payments made pursuant to Section
                  3.4 in any given year below the minimum royalty amount due
                  under this Section 4.1(iv).

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      4.2 No multiple royalties shall be payable because any Licensed Product,
its manufacture, use, lease or sale are or shall be covered by more than one
patent or patent application described in the Patent Rights licensed under this
Agreement.

      4.3 To the extent that any data or intellectual property results from the
activities of Phenome, BIDMC, or their affiliates, and is within the scope of
the Field of Use, such data or intellectual property shall be automatically
included in the REPS Technology or REPS Technology Extensions, and shall be
licensed to MediCept in agreement with the terms of this Agreement, for no
additional consideration.

                                   ARTICLE V.

                               REPORTS AND RECORDS

      5.1 Beginning with the First Commercial Sale of a Licensed Product,
MediCept shall keep, and shall require its Affiliates and Sublicensees to keep,
full, true and accurate books of account in accordance with generally accepted
accounting principles and containing sufficient detail to enable Phenome to
determine the royalty and other amounts payable to Phenome under this Agreement.
Said books of account shall be kept at MediCept's principal place of business or
the principal place of business of the appropriate Affiliate and/or Sublicensee
of MediCept to which this Agreement relates. Said books and the supporting data
shall be retained for at least five (5) years following the end of the calendar
year to which they pertain.

      5.2 Phenome shall have the right to audit the books of account described
above from time to time, but not more frequently than once per year, to the
extent necessary to verify the reports provided for herein or compliance in
other respects with this Agreement. Phenome or its agents shall perform these
audits at Phenome's expense during MediCept's regular business hours.

      5.3 Beginning with the First Commercial Sale of a Licensed Product,
MediCept shall deliver to Phenome true and accurate reports within thirty (30)
days after each March 31st, June 30, September 30 and December 31 for the
previous calendar quarter, giving such particulars of the business conducted by
MediCept, its Affiliates and its sublicensees under this Agreement as shall be
pertinent to a royalty accounting hereunder and to verify MediCept's activities
with respect to achieving the objectives of the Agreement. These reports shall
include at least the following:

            (i)   Number of Licensed Products manufactured and sold by MediCept
                  and its sublicensee.

            (ii)  Aggregate billings for Licensed Products sold by MediCept and
                  its sublicensee.

            (iii) Accounting for all Licensed Products sold.

            (iv)  Deductions and offsets as herein indicated.

            (v)   Total royalties due.

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            (vi)  Names and addresses of all sublicensees of MediCept.

            (vii) Licensed Products manufactured and sold to the U.S.
                  Government. No royalty obligations shall arise from sales or
                  use by, for or on behalf of the U.S. Government in view of a
                  royalty-free, non-exclusive license that may heretofore have
                  been granted to the U.S. Government.

      5.4 Until the First Commercial Sale of a Licensed Product, MediCept shall
provide to Phenome at least annually reasonable detail regarding the activities
of MediCept and MediCept's Affiliates and Sublicensees relative to achieving the
objectives set forth in the Agreement in a timely manner, including but not
limited to, reports of research and development activities, regulatory
approvals, strategic alliances and manufacturing, sublicensing and marketing
efforts.

      5.5 With each report submitted under Section 5.3, MediCept shall pay to
Phenome the royalties due and payable under this Agreement. If no royalties
shall be due, MediCept shall so report.

                                   ARTICLE VI.

                               PATENT PROSECUTION

      6.1 MediCept shall have the full authority to file, prosecute, maintain,
and enforce all patents and applications for patents, within the scope of the
Patent Rights set forth above. MediCept shall undertake all such activities at
its own expense, and with full authority, except that prior to the submission to
the United States Patent and Trademark Office of any paper authorizing a change
in the scope of patent protection for any invention within the Patent Rights,
MediCept shall obtain the approval of Phenome, which approval shall not
unreasonably be denied.

      6.2 MediCept shall reimburse to Phenome the amount of all reasonable fees
and costs relating to the filing, prosecution and maintenance of the Patent
Rights incurred after the date of this Agreement unless those Patent Rights are
also licensed to a third party in a field of use other than the Field of Use, in
which case, MediCept shall not reimburse Phenome for the costs relating to the
filing, prosecution, enforcement, and maintenance of those intellectual property
rights outside the scope of this Agreement.

      6.3 In the event MediCept elects not to pursue, maintain or retain a
particular Patent Right licensed hereunder, MediCept shall so notify Phenome in
sufficient time for Phenome to assume the filing, prosecution and/or maintenance
of such application or patent at Phenome's expense. In such event, MediCept
shall provide to Phenome any authorization necessary to permit Phenome to pursue
and/or maintain such Patent Right. MediCept shall have no further royalty
obligations under this Agreement with respect to any such Patent Right.

                                  ARTICLE VII.

                                  INFRINGEMENT

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      7.1 MediCept and Phenome shall each inform the other promptly in writing
of any alleged infringement by a third party of the Patent Rights in the Field
of Use and of any available evidence thereof.

      7.2 During the term of this Agreement, MediCept shall have the right, but
shall not be obligated, to prosecute at its own expense any infringement of the
Patent Rights by a third party. Phenome hereby agrees that MediCept may include
Phenome as a party plaintiff in any such suit, without expense to Phenome.
MediCept shall have the obligation at its expense to defend any claim of a third
party that any Licensed Product, or MediCept's activities pursuant to this
Agreement, infringe the third party's intellectual property rights. The total
cost of any infringement action commenced or defended solely by MediCept shall
be borne by MediCept, subject to MediCept's right to withhold a portion of the
royalties during such action as set forth in Section 7.4. MediCept shall keep
any recovery or damages for past infringement derived therefrom, subject to its
obligation to reimburse Phenome for any payments withheld and applied pursuant
to Section 7.4. Phenome agrees to reasonably cooperate in any such suit.

      7.3 If within ninety (90) days after having been notified of any alleged
infringement, MediCept shall have been unsuccessful in persuading the alleged
infringer to desist and shall not have brought and shall not be diligently
prosecuting an infringement action, or if MediCept shall notify Phenome at any
time prior thereto of its intention not to bring suit against any alleged
infringer then, in those events, (i) MediCept shall have the right to pay
Phenome royalties at [**] percent ([**]%) of the royalty rate otherwise due in
any country where significant infringing sales are made (i.e., [**] percent
([**]%) or more of total sales of Licensed Products in the Field of Use by
parties other than MediCept or Phenome); and (ii) Phenome may elect to prosecute
at its own expense the alleged infringement of the Patent Rights. If it elects
to prosecute such infringement, Phenome may use the name of MediCept as party
plaintiff. No settlement, consent judgment or other voluntary final disposition
of the suit may be entered into without the consent of MediCept, which consent
shall not be unreasonably withheld. Phenome shall indemnify MediCept against any
order for costs that may be made against MediCept in such proceedings.

      7.4 In the event MediCept shall undertake solely the enforcement and/or
defense of the Patent Rights by litigation, MediCept may withhold up to [**]
percent ([**]%) of the payments otherwise thereafter due to Phenome under
Article IV above, and apply the same toward defraying up to [**] percent ([**]%)
of MediCept's expenses, including reasonable attorney's fees, in connection with
such litigation. Any recovery of damages by MediCept for each such suit shall be
applied first in satisfaction of any unreimbursed expenses and legal fees of
MediCept relating to such suit and next toward reimbursement of Phenome for any
payments under Article IV past due or withheld and applied pursuant to this
Section 7.4. The balance remaining from any such recovery shall be retained by
MediCept.

      7.5 In the event that a declaratory judgment action alleging invalidity or
noninfringement of any of the Patent Rights shall be brought against MediCept,
Phenome, at its option, shall have the right, within thirty (30) days after
commencement of such action, to intervene and participate in the defense of the
action at its own expense.

      7.6 In any infringement suit which either party may institute to enforce
the Patent Rights pursuant to this Agreement, the other party hereto shall, at
the request and the expense of

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the party initiating such suit, cooperate in all reasonable respects and, to the
extent reasonably possible, have its employees testify when requested and make
available relevant records, papers, information, samples, specimens, and the
like.

      7.7 MediCept shall, during the exclusive period of this Agreement, have
the sole right subject to the terms and conditions hereof to sublicense any
alleged infringer for future use of the Patent Rights. Any royalties from such
sublicensee shall be treated as set forth in Article IV.

                                 ARTICLE VIII.

                  UNIFORM INDEMNIFICATION PROVISIONS; INSURANCE

      8.1 MediCept shall indemnify, defend and hold harmless Phenome and BIDMC,
and their corporate affiliates, current or future directors, trustees, officers,
faculty, medical and professional staff, employees, students and agents and
their respective successors, heirs and assigns (the "Indemnitees"), against any
liability, damage, loss or expense (including reasonable attorney's fees and
expenses of litigation) incurred by or imposed upon the Indemnitees or any one
of them in connection with any claims, suits, actions, demands or judgments
arising out of any theory of product liability (including, but not limited to,
actions in the form of tort, warranty or strict liability) concerning any
product, process or service made, used or sold pursuant to any right or license
granted under this Agreement.

      8.2 MediCept's indemnification under Section 8.1 above shall not apply to
any liability, damage, loss or expense to the extent that it is directly
attributable to the negligent activities, reckless misconduct or intentional
misconduct of the Indemnitees.

      8.3 MediCept agrees, at its own expense, to provide attorneys of its own
choosing to defend against any actions brought or filed against any party
indemnified hereunder with respect to the subject of indemnity contained herein,
whether or not such actions are rightfully brought

      8.4 Beginning at the time any Licensed Product is commercially distributed
or sold by MediCept or by a licensee, affiliate, distributor or agent of
MediCept, MediCept shall, at its sole cost and expense, procure and maintain
comprehensive general liability insurance in amounts not less than $2,000,000
per incident and $2,000,000 annual aggregate and naming the Indemnitees as
additional insureds. Such comprehensive general liability insurance shall
provide (i) product liability coverage and (ii) broad form contractual liability
coverage for MediCept's indemnification under Section 8.1 of the Agreement. If
MediCept elects to self-insure all or part of the limits described above
(including deductibles or retentions which are in excess of $250,000 annual
aggregate), such self-insurance program must be acceptable to Phenome and
Phenome's insurance carrier. The minimum amounts of insurance coverage required
under this Section 8.4 shall not be construed to create a limit of MediCept's
liability with respect to its indemnification under Section 8.1 of this
Agreement.

      MediCept shall provide Phenome with written evidence of such insurance
upon request of Phenome. MediCept shall provide Phenome with written notice at
least fifteen (15) days prior to the cancellation, non-renewal or material
change in such insurance; if MediCept does not obtain replacement insurance
providing comparable coverage within such fifteen (15) day

                                       11
<PAGE>

period, Phenome shall have the right to terminate this Agreement effective at
the end of such fifteen (15) day period without notice or any additional waiting
periods.

      MediCept shall maintain such comprehensive general liability insurance
beyond the expiration or termination of this Agreement during (i) the period
that any Licensed Product is being commercially distributed or sold (other than
for the purpose of obtaining regulatory approvals) by MediCept or by a licensee,
affiliate, distributor or agent of MediCept and (ii) a reasonable period after
the period referred to in (c )(i) above which in no event shall be less than
five (5) years.

                                  ARTICLE IX.

                         REPRESENTATIONS AND WARRANTIES

      9.1 Phenome represents that to the best of its knowledge, the patents or
patent applications described herein and the REPS Technology and REPS Technology
Extensions described herein are not the subject of any liens, encumbrances,
interference proceedings, opposition proceedings, pending litigation, or other
disputes.

      9.2 Each party represents and warrants to the other that it has the legal
right and power to enter into this Agreement, and the authority to extend the
rights and licenses granted or to be granted to the other in this Agreement, and
to fully perform its obligations hereunder, and that it has not made nor will it
make any commitments to others in conflict with or in derogation of such rights
or this Agreement. Except as otherwise disclosed, each party fully represents to
the other that it is not aware of any legal obstacles which could prevent it
from carrying out the provisions of this Agreement.

      9.3 Other than warranties set forth herein, Phenome makes no warranty,
express or implied, including, without limitation, any implied warranty of
merchantability or any implied warranty of fitness for a particular purpose with
respect to any patent, trademark, software, trade secret, tangible research
property, information or data licensed or otherwise provided to MediCept
hereunder and hereby disclaims the same.

      9.4 Neither party will be liable to the other for any indirect,
incidental, special or consequential damages, including lost profits, regardless
of whether the claim is based on contract, tort, warranty, or otherwise, even if
the other party has been advised of the possibility of such damages.

                                   ARTICLE X.

                            GOVERNMENTAL REGULATIONS

      10.1 MediCept shall comply with, and insure its Affiliates and Licensees
comply with all governmental statutes and regulations that relate to the
Licensed Products. This may include applications for foreign patents which
require a foreign filing license from the United States Government, restriction
on the export or sale of certain technology or commodities, FDA statutes and
regulations, or other such restrictions on the transfer, sale, or disclosure of
technology. This includes, for example, the Export Administration Act of 1979 as
amended, codified in 50 App.

                                       12
<PAGE>

U.S.C. Section 2041 et seq. Phenome neither represents that a foreign export or
filing license shall not be required, nor that if required, such licenses shall
issue.

                                  ARTICLE XI.

                                 PATENT MARKING

      11.1 MediCept shall agree to mark permanently and legibly all Licensed
Products manufactured or sold by MediCept, under this Agreement with the number
of each issued patent applicable thereto. MediCept may state that such Licensed
Product is licensed from Phenome under one or more of the patents and/or
applications comprising the Patent Rights. MediCept shall comply with disclosure
requirements of all applicable laws relating to its business, including United
States and state security laws.

                                  ARTICLE XII.

                       DISPUTE RESOLUTION AND ARBITRATION

      12.1 Except for the right of either party to apply to a court of competent
jurisdiction for a temporary restraining order, a preliminary injunction, or
other equitable relief to preserve the status quo or prevent irreparable harm,
any and all claims, disputes or controversies arising under, out of, or in
connection with the Agreement, including any dispute relating to patent validity
or infringement, which the parties shall be unable to resolve within sixty (60)
days shall be mediated in good faith. The party raising such dispute shall
promptly advise the other of such claim, dispute or controversy in writing,
describing the dispute in reasonable detail. By no later than five (5) business
says after the recipient has received such notice of dispute, each party shall
have selected a representative who shall have the authority to bind such party
and shall have advised the other party in writing of the name and title of such
representative.

      12.2 Within fifteen (15) days of receipt of a request for mediation as
described above, the parties agree to commence mediation in the City of Boston,
Commonwealth of Massachusetts in accordance with the policies and procedures of
Endispute, Inc. ("Endispute"), or in the event that Endispute is no longer in
operation, in accordance with the policies and procedures of the American
Arbitration Association. The parties shall select a mediator acceptable to both
of them from a list provided by Endispute. The parties agree to cooperate in
good faith in said mediator's efforts to assist the parties to resolve the
dispute. Each party agrees to pay fifty percent (50%) of the costs of said
mediation. If the matter has not been resolved within thirty (30) days of the
commencement of mediation, either party may request in writing that the matter
be submitted to arbitration in accordance with the following subparagraph.

      12.3 Any and all claims, disputes or controversies arising under, out of,
or in connection with this Agreement, which have not been resolved by good faith
negotiations between the parties or by mediation shall be resolved by final and
binding arbitration in Boston, Massachusetts, in accordance with the rules of
the American Arbitration Association ("AAA") then obtaining and all expenses, in
connection therewith, will be shared equally, except for the expense of the
parties' respective legal counsels. A single arbitrator shall be mutually agreed
upon and if the parties are unable to agree on a mutually acceptable arbitrator,
an arbitrator shall

                                       13
<PAGE>

be chosen in accordance with AAA rules. Any award rendered in such arbitration
shall be final and may be enforced by either party.

      12.4 Notwithstanding the foregoing, nothing in this Article XII shall be
construed to waive any rights or timely performance of any obligations existing
under this Agreement.

                                 ARTICLE XIII.

                              TERM AND TERMINATION

      13.1 Unless earlier terminated as provided herein, this Agreement shall
terminate upon the last to expire of the Patent Rights, on a country-by-country
basis.

      13.2 Phenome may terminate this Agreement immediately upon the bankruptcy,
insolvency, liquidation, dissolution or cessation of operations of MediCept; or
the filing of any voluntary petition for bankruptcy, dissolution, liquidation or
winding-up of the affairs of MediCept; or any assignment by MediCept for the
benefit of creditors; or the filing of any involuntary petition for bankruptcy,
dissolution, liquidation or winding-up of the affairs of MediCept which is not
dismissed within ninety (90) days of the date on which it is filed or commenced.

      13.3 Phenome may terminate this Agreement upon sixty (60) days prior
written notice in the event of MediCept's failure to pay to Phenome royalties
due and payable hereunder in a timely manner, unless MediCept shall make all
such payments to Phenome within said sixty (60) day period. Upon the expiration
of the sixty (60) day period, if MediCept shall not have made all such payments
to Phenome, the rights, privileges and licenses granted hereunder shall
terminate.

      13.4 Except as otherwise provided in Section 13.3 either party may
terminate this Agreement upon ninety (90) days prior written notice in the event
of the breach or default of any material term or condition or warranty contained
in this Agreement by the other, unless the breaching party shall cure such
breach within said ninety (90) day period. Upon the expiration of the ninety
(90) day period, if breaching party shall not have cured said breach, the
rights, privileges and license granted hereunder shall terminate.

      13.5 Prior to the first offering for sale of a Licensed Product in any
country, MediCept may terminate this Agreement upon three (3) months prior
written notice to Phenome without cause or penalty and upon payment by MediCept
of all amounts due Phenome through the effective date of termination.

      13.6 After the first offering for sale of a Licensed Product in a country,
MediCept may terminate this Agreement in whole or as it pertains to that country
upon twelve (12) months prior written notice to Phenome without cause or penalty
and upon payment by MediCept of all amounts due Phenome through the effective
date of termination.

      13.7 Upon termination of this Agreement for any reason, nothing herein
shall be construed to release either party from any obligation that matured
prior to the effective date of such termination. MediCept and any sublicensee
thereof may, however, after the effective date of such termination, sell all
Licensed Products and complete Licensed Products in the process of

                                       14
<PAGE>

manufacture at the time of such termination and sell the same, provided that
MediCept shall pay to Phenome the royalties thereon as required under this
Agreement and shall submit the reports required under this Agreement on the
sales of Licensed Products.

      13.8 In the event of termination of this Agreement for any reason, all
payments due or made to Phenome by MediCept shall be nonrefundable.

                                  ARTICLE XIV.

                   COMMERCIAL DEVELOPMENT AND NON-COMPETITION

      14.1 During the term of this Agreement, Phenome shall not conduct research
in the Field of Use for, or on behalf of, nor consult with any other person or
entity, except that Phenome shall be free (i) pursuant to a research services
contract with a third party, to develop and utilize its tools for understanding
the mechanism of action of drugs other than the REPS Technology and (ii) to
apply for (with MediCept's' assistance) and perform a Phase II SBIR grant in
which Phenome utilizes its tools for determining the mechanism of action of the
REPS Technology.

      14.2 Each party hereto shall agree to maintain the confidentiality of all
confidential or proprietary information provided to it by any other party and to
return all such confidential or proprietary information, and any copies thereof,
to the providing party upon termination of the transactions contemplated hereby.

      14.3 Phenome shall not apply for funds from any third party for the
research and development of the REPS Technology or the REPS Technology
Extensions without the prior written consent of MediCept.

      14.4 MediCept shall be responsible for all research and development
activities required for commercial development of Licensed Products in the Field
of Use at MediCept's sole expense.

      14.5 All applications required for regulatory approval of Licensed
Products (e.g., INDs, NDAs, PLAs, etc.) shall be filed by MediCept, shall be at
its sole cost, in its name, and be owned by it.

      14.6 MediCept shall be responsible for all sales, marketing, and
distribution of all Licensed Products at its sole cost.

      14.7 MediCept may select and register trademarks for brand names for all
Licensed Products and such trademarks shall be the sole property of MediCept.

                                  ARTICLE XV.

                               GENERAL PROVISIONS

      15.1 Except as otherwise provided herein, this Agreement is not assignable
in whole or in part, and any attempt to do so shall be void and of no effect.
Phenome may assign this

                                       15
<PAGE>

Agreement to any Affiliate of Phenome, or with the prior written consent of
MediCept to a third party, which consent shall not be unreasonably withheld or
delayed. MediCept may assign this Agreement to any Affiliate, to another entity
in connection with a merger, consolidation or sale of substantially all of the
assets of MediCept relating to the Licensed Products or with the prior written
consent of Phenome, to a third party which consent shall not be unreasonably
withheld or delayed.

      15.2 All rights and remedies hereunder will be cumulative and not
alternative and this Agreement shall be construed and governed by the laws of
the Commonwealth of Massachusetts.

      15.3 This Agreement may be amended only by written agreement signed by the
parties

      15.4 It is expressly agreed by the parties hereto that Phenome and
MediCept are independent contractors and nothing in this Agreement is intended
to create an employer relationship, joint venture, or partnership between the
parties. No party has the authority to bind the other except as provided herein.

      15.5 This Agreement constitutes the entire agreement between the parties
with respect to the subject matter hereof and supersedes all proposals,
negotiations and other communications between the parties, whether written or
oral, with respect to the subject matter hereof.

      15.6 If any provisions of this Agreement shall be held to be invalid,
illegal or unenforceable, the validity, legality and enforceability of the
remaining provisions of this Agreement shall not be impaired hereby.

      15.7 This Agreement may be executed in any number of counterparts, each of
which shall be deemed an original as against the party whose signature appears
thereon, but all of which taken together shall constitute but one and the same
instrument.

      15.8 The failure of either party to assert a right to which it is entitled
or to insist upon compliance with any term or condition of this Agreement shall
not constitute a waiver of that right or excuse a similar subsequent failure to
perform any such term or condition of the other party.

      15.9 Each party hereto agrees to execute, acknowledge and deliver such
further instruments and do all such further acts as may be necessary or
appropriate to carry out the purposes and intent of this Agreement.

      15.10 The paragraph headings contained in this Agreement are for reference
purposes only and shall not in any way affect the meaning or interpretation of
this Agreement.

      15.11 All payments, notices, reports and/or other communications made in
accordance with this Agreement, shall be sufficiently made or given on the date
of the mailing if delivered by hand, by facsimile or sent by first class mail
postage prepaid and addressed as follows, or such other address as either party
shall notify the other in writing.

                                       16
<PAGE>

In the case of Phenome:

                  Phenome Sciences, Inc.
                  3-G Gill Street
                  Woburn, MA 01801

                  Attention:  Peter B. Leone

In the case of MediCept:

                  MediCept, Inc.
                  40 Royal Avenue
                  Cambridge, MA 02138

                  Attention:  H. Shaw Warren, M.D.

                 [BALANCE OF THIS PAGE INTENTIONALLY LEFT BLANK]

                                       17
<PAGE>

      IN WITNESS WHEREOF, the parties have executed this Agreement as of the
date written below.

MEDICEPT, INC.                                       PHENOME SCIENCES, INC.

By:     /s/ Howland S. Warren, Jr., M.D.            By:      /s/ Peter B. Leone
        -------------------------------                     --------------------
Name:   Howland S. Warren, Jr., M.D.                Name:    Peter B. Leone
Title:  Chairman of the Board                       Title:   President and CEO
Date:   December 15, 2000                           Date:    December 15, 2000

                                       18<PAGE>

                                                                   Exhibit 10.10

                                                                  Execution Copy

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

                                LICENSE AGREEMENT

         This License Agreement (the "Agreement") is made as of this 18th day
of December, 2003 between Abbott Laboratories, a corporation organized under the
laws of the State of Illinois, USA, with its principal office at 100 Abbott Park
Road, Abbott Park, Illinois 60064 ("Abbott") and Critical Therapeutics, Inc., a
corporation organized under the laws of the State of Delaware, USA, with its
principal office at 675 Massachusetts Avenue, 14th Floor, Cambridge,
Massachusetts 02139 ("CTI").

                                  INTRODUCTION

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

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

         3.       CTI wishes to obtain, and Abbott wishes to grant to CTI,
certain rights under Abbott's agreement with Jagotec AG.

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

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

         1.1      "Acusphere" shall mean Acusphere, Inc.

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

         1.3      "Commercially Reasonable Efforts" shall mean with respect to
the efforts to be expended by a Party with respect to any objective, reasonable,
diligent, good faith efforts to accomplish such objective as such Party would
normally use to accomplish a similar objective under similar circumstances, it
being understood and agreed that with respect to the development or
commercialization of a Product, such efforts shall be substantially equivalent
to those efforts and resources commonly used by a mid-size biotechnology company
for a similar pharmaceutical product owned by it or to which it has rights,
which product is at a similar stage in its development or product life and is of
similar market potential taking into account efficacy, safety, approved
labeling, the competitiveness of alternative products in the marketplace, the
patent and other proprietary position of the product, the likelihood of
regulatory approval given the regulatory structure involved, the profitability
of the product including the royalties payable

<PAGE>

                                                                  Execution Copy

to licensors of patent or other intellectual property rights, alternative
products and other relevant factors. Commercially Reasonable Efforts shall be
determined on a market-by-market and Indication-by-Indication basis for a
particular Product, and it is anticipated that the level of effort will be
different for different markets, and will change over time, reflecting changes
in the status of the Product and the market(s) involved.

         1.4      "Compound" shall mean Zileuton.

         1.5      "Confidential Information" shall mean any information data or
business plans relating to the Compound, Product, Patents and/or the know-how
which a Party discloses to the other Party, including, without limitation, the
parties to and terms of this Agreement, information protected by that certain
Option Agreement dated May 22, 2003 between Abbott and CTI, that certain
Bilateral Confidentiality Disclosure Agreement dated March 5, 2003 between
Abbott and CTI and that certain Bilateral Confidentiality Disclosure Agreement
dated August 27, 2002 between Abbott and CTI's agent, Pleiades Consultation
Inc., an Arizona corporation, except any portion thereof which:

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

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

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

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

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

         1.7      "Excluded Pediatrics" shall mean research, diagnostics,
therapeutics, and services relating to humans aged seven (7) years and under for
intravenous and buccal administration of the Compound.

         1.8      "Excluded Product" shall mean the finished form of the
Compound currently marketed under the trade name of Zyflo.

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

         1.10     "Field" shall mean research, diagnostics, therapeutics, and
services for all human medical conditions or diseases, except for research,
diagnostics, therapeutics, and services related to the following: (i) Excluded
Pediatrics, (ii) cardiovascular and vascular devices, including, without
limitation, stents, and (iii) Excluded Product.

                                       2
<PAGE>

                                                                  Execution Copy

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

         1.12     "IND" shall mean any Investigational New Drug Application
filed with the FDA for marketing approval for a drug pursuant to the Federal
Drug and Cosmetic Act (21 U.S.C. Section 321, et seq.) and the regulations
promulgated thereunder, including any amendments or supplements thereto.

         1.13     "Indication" shall mean a distinct disease or condition in the
Field for which Regulatory Approval has been sought and/or obtained, including,
without limitation, all forms of the following diseases or conditions: asthma,
chronic obstructive pulmonary disease, and emphysema.

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

         1.15     "License Agreement" shall mean that certain License Agreement
dated October 3, 1996 between Abbott and Jagotec AG, a Swiss corporation (nka
Skye Pharma) regarding certain patents, know how and manufacturing rights
regarding the controlled release formulation of the Compound.

         1.16     "License Fee" shall mean a fee of One Million Five Hundred
Thousand United States Dollars ($1,500,000).

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

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

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

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

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

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

                                       3
<PAGE>

                                                                  Execution Copy

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

                  (f)      price reductions imposed by government authorities.

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

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

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

         1.21     "Product" shall mean any pharmaceutical product which
incorporates the Compound, including without limitation Zileuton CR and Zileuton
IV, but excluding the Excluded Product, for use in the Field, and (a) use of
which by CTI, an Affiliate or sublicensee

                                       4
<PAGE>

                                                                  Execution Copy

of CTI would be an infringement of a Valid Claim (as hereinafter defined) of the
Patents but for the grant of the license from Abbott to CTI, or (b) embodies
Know-How.

         1.22     "Regulatory Approval" shall mean the approval to sell Product
granted by any Regulatory Authority (as defined below) with authority or
jurisdiction over the testing, manufacture, use, storage, import, transport,
promotion, marketing and sale of a diagnostic, research, therapeutic or service
product in a country.

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

         1.24     "Research Agreement" shall mean that certain Research
Agreement dated May 14, 2003 between Acusphere and Abbott regarding use of
Acusphere's drug delivery system with certain of Abbott's Know How regarding the
Compound.

         1.25     "Skye Pharma" shall mean the name to which Jagotec AG, a Swiss
corporation, is currently referred.

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

         1.27     "Territory" shall mean the entire world.

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

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

         1.30     "Zileuton CR" shall mean the controlled release formulation of
the Compound, which is being investigated by CTI.

         1.31     "Zileuton IV" shall mean the intravenous formulation of the
Compound, which is being investigated by CTI.

         1.32     "Zyflo" shall mean the immediate release formulation of the
Compound for which Abbott has obtained FDA approval and is exemplified by the
product that is currently marketed within the United States by the trade name
Zyflo.

2.       LICENSE GRANTS.

         2.1      Exclusive License. Subject to Section 12.4,

                                       5
<PAGE>

                                                                  Execution Copy

                  (i)      Abbott hereby grants to CTI and its Affiliates an
                           exclusive license under the Patents and Know How to
                           develop, have developed, make, have made, use, have
                           used, import, have imported, offer to sell, sell, and
                           have sold the Product in the Territory.

                  (ii)     Abbott hereby grants to CTI and its Affiliates,
                           subject to Skye Pharma's written consent, an
                           exclusive sublicense under Abbott's rights to Patents
                           and Know How pursuant to the License Agreement to
                           develop, have developed, make, have made, use, have
                           used, import, have imported, offer to sell, sell, and
                           have sold Zileuton CR in the Field in the Territory.
                           CTI acknowledges and agrees that CTI is responsible
                           to Skye Pharma for any and all payments due Skye
                           Pharma or its affiliates under the License Agreement
                           both by Abbott and CTI. CTI shall indemnify, defend
                           and hold harmless Abbott from any and all liability
                           relating to either CTI's or Abbott's obligations to
                           Skye Pharma under the License Agreement or in regard
                           to Zileuton CR, except to the extent such liability
                           arises out of Abbott's gross negligence or willful
                           misconduct.

         2.2      Right to Sublicense. CTI shall have the right to grant
sub-licenses to the rights granted under Section 2.1, subject to Section 2.4
below and any consent requirements that Skye Pharma retains regarding the rights
granted in Section 2.1 (ii). In the event that CTI grants a sublicense, CTI
shall notify Abbott of each such sublicense without unreasonable delay following
any such grant of sublicense. CTI shall remain fully responsible for the
compliance by such sub-licensees with the terms and conditions of this Agreement
as if such sub-licensees were CTI hereunder.

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

         2.4      Co-Commercialization Right of First Negotiation. In the event
that CTI decides to sublicense its rights under Section 2.1 in all or part of
the Territory, CTI shall first provide written notice to Abbott of such
decision, including the terms which CTI intends to propose to potential Third
Party sublicensee (a "co-commercialization opportunity"). Abbott shall have the
right to enter into good faith negotiations relating to such
co-commercialization opportunity for the Product by providing written notice to
CTI within forty five (45) days after receipt of CTI' s notice. If Abbott
provides such notice to CTI within such forty five (45) day period then the
Parties shall negotiate in good faith relating to such co-commercialization
opportunity for a period of seventy five (75) days, or such shorter or longer
period as is mutually agreed to by the Parties. If Abbott does not provide
notice to CTI within such initial forty five (45) day period or indicates it is
not interested in such co-commercialization opportunity, then CTI shall be free
to enter into an arrangement with a Third Party on such terms as CTI and such
Third Party may agree upon. If Abbott exercises its right of first negotiation
and the Parties are unable to reach mutual agreement as to Abbott's
participation in such co-commercialization opportunity within such seventy five
(75) day period, then CTI shall be free to enter into an arrangement with a
Third Party on terms (financial and non-financial) that are not materially more
favorable to such

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Third Party, taken as a whole, than the terms (financial and non-financial) last
discussed with Abbott. Notwithstanding the foregoing, in the event that the
Parties have not been able to agree to the terms of such co-commercialization
opportunity by the last day of such seventy five (75) day period, the Parties
shall consider, in good faith, extending such seventy five (75) day period for
up to thirty (30) days, provided, that the Parties have been diligently pursuing
a final agreement on the terms of the co-commercialization opportunity.

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

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

3.       TECHNOLOGY TRANSFER.

         3.1      Completion of Technology Transfer. Subject to Section 6,
Abbott will use Commercially Reasonable Efforts to transfer knowledge of its
present technology as identified on Schedule 2 for the manufacture and
validation of Product, including Abbott's active pharmaceutical ingredient
process ("API Process") and the controlled release formulation ("CR
Formulation") data, to CTI (or a CTI designee) to allow CTI to further develop
and manufacture Product. CTI will reimburse Abbott for its actual costs and
expenses in this technology transfer.

         3.2      Third Party Manufacturers. Abbott shall use Commercially
Reasonable Efforts, by telephone, correspondence or other appropriate means as
agreed by the Parties, to assist CTI in obtaining the right to work with
Acusphere and the exclusive right to use Acusphere's patents and know how
related to the delivery system for Zileuton IV in the Field in the Territory. In
the event that CTI obtains such rights, CTI acknowledges and agrees that CTI
will be responsible to Acusphere for any and all payments due Acusphere or its
affiliates under the Research Agreement both by Abbott and CTI. CTI shall
indemnify, defend and hold harmless Abbott from any and all liability relating
to either CTI's or Abbott's obligations to Acusphere under the Research
Agreement or in regard to Zileuton IV, except to the extent such liability
arises out of Abbott's gross negligence or willful misconduct.

         3.3      Supply of Bulk Drug. CTI agrees to supply Abbott at no cost to
Abbott with up to 500 kilograms, per calendar year during the Term, of bulk
active pharmaceutical ingredient substance required for Abbott's research and
development activities related to Excluded Pediatrics. If Abbott requires more
than 500 kilograms of bulk active pharmaceutical ingredient substance for
Abbott's research and development activities related to Excluded Pediatrics in
any given year during the Term, CTI shall supply Abbott with Abbott's
requirements for bulk drug

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substance at CTI's cost (which cost shall only include CTI's cost of direct
materials; direct labor; manufacturing overhead; and a reasonable allocation of
general and administrative expenses and facilities expenses), such amount to be
verified in writing to Abbott's reasonable satisfaction. CTI shall supply Abbott
with Abbott's commercial requirements for bulk drug substance at CTI's cost (as
defined in this Section 3.3), such amount to be verified in writing to Abbott's
reasonable satisfaction.

4.       ACCESS TO IND AND NDA; FDA; SAFETY.

         4.1      During the Term, Abbott shall permit CTI (at CTI's expense) to
have access to Abbott's clinical filings with the FDA and any applicable foreign
regulatory authorities for Zileuton CR, as available, and copies of all
associated documents (subject to reimbursement for actual costs to Abbott
including, but not limited to accessing, copying, and shipping documents, and
any personnel or operational costs incurred by Abbott in support of CTI during
the Term) for the purposes of CTI obtaining regulatory approval of Product.
Abbott shall provide CTI with a letter of cross reference to Abbott's applicable
IND and NDA files.

         4.2      CTI shall comply with all present and future laws, including,
without limitation, the Federal Food, Drug and Cosmetic Act, rules, orders,
ordinances, regulations, statutes, requirements, codes, executive orders, rules
of common law, and any judicial interpretations thereof, extraordinary as well
as ordinary, of all governmental authorities, including, without limitation, the
FDA. Furthermore, each Party acknowledges and understands that it has no
authority to represent the other Party in any way before the FDA and as such
each Party will not make any representations or commitments in the other Party's
name with the FDA.

         4.3      Each Party warrants that it shall advise the other of any
serious adverse events relating in any way to the Compound or the Product as and
when such serious adverse events are reported or reportable by it to the
Regulatory Authorities. In addition, within ninety (90) days after the date of
this Agreement, the Parties shall use good faith efforts to enter into an
agreement to initiate a process for the exchange of adverse event safety data in
a mutually agreed format, including but not limited to, postmarketing
spontaneous reports received by a Party or its Affiliates in order to monitor
the safety of the Compound or the Product and to meet reporting requirements
with any applicable Regulatory Authority.

5.       PRODUCT DEVELOPMENT AND COMMERCIALIZATION.

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

         5.2      Commercialization. Upon obtaining Regulatory Approval for
Product in any country in the Territory, CTI shall use Commercially Reasonable
Efforts to market and sell such Product in such country.

         5.3      Excuse for Non-Performance. The obligations of CTI with
respect to any Product Indication or formulation under this Article 5 are
expressly conditioned upon the continuing absence of any adverse condition or
event relating to the safety or efficacy of such Product

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Indication or formulation, and the obligation of CTI to develop or market such
Product Indication or formulation shall be delayed or suspended so long as such
condition or event exists.

6.       FINANCIAL PROVISIONS.

         6.1      License Fee. In consideration of the exclusive licenses
granted hereunder, CTI shall pay to Abbott a lump sum payment of the License Fee
on the Effective Date.

         6.2      Milestones. CTI shall make the following payments to Abbott
within thirty (30) days after the achievement of the indicated milestones:

<TABLE>
<S>         <C>                   <C>
(i)         [**]                  $[**]
(ii)        [**]                  $[**]
(iii)       [**]                  $[**]
(iv)        [**]                  $[**]
(v)         [**]                  $[**]
(vi)        [**]                  $[**]
(vii)       [**]                  $[**]
(viii)      [**].                 $[**]
</TABLE>

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

<TABLE>
<S>         <C>                                                <C>
(i)         [**]% of total annual Net Sales of Product of      $[**] - $[**]
(ii)        [**]% of total annual Net Sales of Product of      $[**] - $[**]
(iii)       [**]% of total annual Net Sales of Product of      $[**] - $[**]
(iv)        [**]% of total annual Net Sales of Product of      $[**] - $[**]
(v)         [**]% of total annual Net Sales of Product of      > $[**]
</TABLE>

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

         6.4      Term of Royalty Payments. Royalties shall be paid on a
country-by-country basis for a period often (10) years from First Commercial
Sale of Product in each such country.

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         6.5      Payments to Third Parties. Any obligations due to Skye Pharma
(Jago) and any other Third Parties for the CR Formulation will be the
responsibility of CTI.

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

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

         6.8      Royalty Reports; Royalty Payments. CTI shall deliver to
Abbott, within sixty (60) days after the end of each calendar quarter,
sufficiently detailed written accountings of Net Sales of Products that are
subject to royalty payments due to Abbott or Third Parties, in accordance with
this Agreement, including, without limitation, Acusphere and Skye Pharma, for
such calendar quarter. Such quarterly reports shall indicate gross sales on a
country-by-country basis, the deductions from gross sales used in calculating
Net Sales and the resulting calculation of royalties. When CTI delivers such
accountings to Abbott, CTI shall also deliver all royalty payments due under
Section 6.3 to Abbott for the calendar quarter. With respect to sales of
products invoiced in United States Dollars, the sales and royalties payable
shall be expressed in United States Dollars. With respect to sales of products
invoiced in a currency other than United States Dollars, such foreign currency
amounts shall be converted into United States Dollars at the official average
monthly rates used by Abbott Laboratories for conversion of its monthly
financial statements - the average B.2.0 rate. The month end B.2.0 rate is
determined by taking the numbers from the 9:00 am CST Reuters screen at the
second to last business day of each month (with the exception of November, when
the rate is taken on the last business day). With the exception of the Euro,
British Pound, Australian Dollar and New Zealand Dollar, the ask price is used.
For the four (4) aforementioned currencies the bid rate is used. An average
monthly rate is determined by taking the calculated average of the prior last
business day of the month book rate and the current last business day of the
month book rate.

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

         6.10     Tax Withholding. The Parties shall use their best efforts to
reduce tax withholding on payments made to Abbott hereunder. Notwithstanding
such efforts, if tax

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

7.       REPRESENTATIONS AND WARRANTIES OF ABBOTT.

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

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

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

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

         7.5      As of the Effective Date Abbott has disclosed to CTI, and
provided to CTI a copy of, all agreements between Abbott and any Third Parties
which are related to the development, registration, manufacture, use, marketing,
distribution, importation, sale or commercialization of the Compound in the
Field in the Territory.

8.       REPRESENTATIONS AND WARRANTIES OF CTI.

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

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9.       CONFIDENTIALITY AND NON-DISCLOSURE.

         9.1      Confidential Information. Neither Party shall use or disclose
any Confidential Information received by it pursuant to this Agreement except
for the purposes set forth in this Agreement without the prior written consent
of the other. CTI shall have the right to disclose Confidential Information to
its agent Pleiades Consultation Inc. in accordance with that certain Bilateral
Confidentiality Disclosure Agreement dated August 27, 2002 between Abbott and
CTI's agent, Pleiades Consultation Inc., an Arizona corporation, as necessary
for the exercise by CTI of its rights and obligations under this Agreement. This
obligation will continue until seven (7) years following the expiration or
termination of this Agreement.

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

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

                  (ii)     for audit purposes; or

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

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

         9.3      Tax Disclosure. Notwithstanding anything herein to the
contrary, each Party (and their employees and agents) may disclose to any and
all persons, without limitation of any kind, the tax treatment and tax structure
of the transactions contemplated by this Agreement and all materials of any kind
(including opinions and other tax analyses) that are provided to each Party
relating to such tax treatment and tax structure. The preceding sentence shall
be effective immediately upon the commencement of discussions between the
Parties (whether such discussions commenced orally, in writing or otherwise)
that are related to the terms of this Agreement.

         9.4      SEC Filings. Either Party may disclose the existence and terms
of this Agreement to the extent required to comply with applicable laws,
including without limitation the rules and regulations promulgated by the United
States Securities and Exchange Commission. Notwithstanding the foregoing, prior
to disclosing this Agreement or any of the terms hereof pursuant to this Section
9.4, the Parties will consult with one another on the terms of this Agreement to
be redacted in making any such disclosure. If a Party discloses this Agreement
or

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any of the terms hereof in accordance with this Section 9.4, such Party agrees,
at its own expense, to seek confidential treatment of portions of this Agreement
or such terms, as may be reasonably requested by the other Party.

10.      INTELLECTUAL PROPERTY.

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

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

         10.3     Third Party Infringement.

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

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

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

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

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

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

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

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

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

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

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

11.      INDEMNIFICATION.

         11.1     CTI. CTI agrees to defend Abbott and its Affiliates at its
cost and expense, and will indemnify and hold Abbott and its Affiliates and
their respective directors, officers, employees and agents (the "Abbott
Indemnified Parties") harmless from and against any losses, costs, damages, fees
or expenses arising out of any Third Party claim relating to (i) any breach by
CTI of any of its representations, warranties or obligations pursuant to this
Agreement or (ii) personal injury from the development, manufacture, use, sale
or other disposition of Product by CTI, its Affiliates and/or sublicensees. In
the event of any such claim against the Abbott Indemnified Parties by any Third
Party, Abbot shall promptly notify CTI in writing of the claim and CTI shall
manage and control, at its sole expense, the defense of the claim and its
settlement. The Abbott Indemnified Parties shall cooperate with CTI and may, at
their option and expense, be represented in any such action or proceeding. CTI
shall not be liable for any litigation costs

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or expenses incurred by the Abbott Indemnified Parties without CTI's prior
written authorization. In addition, CTI shall not be responsible for the
indemnification of any Abbott Indemnified Party arising from any negligent or
intentional acts by such Party, or as the result of any settlement or compromise
by the Abbott Indemnified Parties without CTI's prior written consent.

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

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

12.      TERMINATION.

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

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

         12.3     Termination.

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                  (a)      CTI shall have the right to terminate this Agreement
at any time upon sixty (60) days written notice to Abbott in CTI's sole and
absolute discretion, provided that CTI shall pay Abbott [**] United States
Dollars ($[**]) (the "Termination Fee"), less the License Fee and any milestone
payments that CTI has already made to Abbott in accordance with Section 6.2. In
the event that CTI has paid Abbott [**] United States Dollars ($[**]) or more in
payment of the License Fee and in milestone payments in accordance with Section
6.2, then CTI shall not owe Abbott the Termination Fee in accordance with this
paragraph 12.3(a).

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

         12.4     Effect of Termination. Upon termination of this Agreement
pursuant to Section 12.3:

                  (a)      In the event that such termination is by Abbott
pursuant to Section 12.3(b) or by CTI pursuant to Section 12.3(a), then all
licenses granted to CTI shall immediately terminate and CTI shall assign to
Abbott all of its right, title and interest in and to all regulatory filings and
Regulatory Approvals relating to Product; or

                  (b)      In the event that such termination is by CTI for a
material breach of this Agreement by Abbott, then the rights of Abbott under
Section 2.4 shall immediately terminate and all licenses set forth in Section
2.1, 2.2 and 2.3 shall continue in effect. In addition, CTI's financial
obligations set forth in Section 6.3 shall remain in effect and survive such
termination.

         12.5     Survival. Upon termination of this Agreement for any reason,
nothing in this Agreement shall be construed to release either Party from any
obligations that matured prior to the effective date of expiration or
termination; and Sections 12.2, 12.4 and this Section 12.5 and the following
provisions shall expressly survive any such expiration or termination: Article
1, Article 2 (to the extent provided in Section 12.4), Article 6 (to the extent
additional amounts are to be paid to Abbott in accordance with paragraph 12.3(a)
or paragraph 12.4(b )), Article 9, Article 11 and Article 13.

13.      MISCELLANEOUS.

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

                                       16
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                                                                  Execution Copy

         If to CTI:        Critical Therapeutics, Inc.
                           675 Massachusetts Avenue
                           14th Floor
                           Cambridge, Massachusetts 02139
                           Attention: Chief Executive Officer
                           FACSIMILE: 617-354-9318

                           with a copy to:

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

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

                           with a copy to:

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

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

         13.3     Entire Agreement. Subject to the confidentiality obligations
contained in that certain Bilateral Confidentiality Disclosure Agreement dated
March 5, 2003 between Abbott and CTI and that certain Bilateral Confidentiality
Disclosure Agreement dated August 27, 2002 between Abbott and CTI's agent,
Pleiades Consultation, Inc., an Arizona corporation, this Agreement contains the
entire understanding of the Parties with respect to the subject matter hereof.
All other express or implied agreements and understandings, either oral or
written, heretofore made are expressly superseded by this Agreement. This
Agreement may be amended, or any term hereof modified, only by a written
instrument duly executed by both Parties.

         13.4     Counterparts. This Agreement may be executed in two (2) or
more counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument. This Agreement may be
executed by facsimiles of the Parties' signatures

                                       17
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                                                                  Execution Copy

provided the facsimile counterpart signature pages are promptly followed by the
original signature pages by overnight delivery in accordance with Section 13.1.

         13.5     Severability. If any provision of this Agreement is deemed
unenforceable, the remainder of the Agreement will not be affected and, if
appropriate, the Parties will attempt to replace the unenforceable provision
with a new provision that, to the extent possible, reflects the Parties'
original intent.

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

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

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

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

         13.10    Publicity. Within five (5) days of the Effective Date, the
Parties shall jointly issue a press release in the exact form set forth in
Exhibit B attached hereto ("Press Release"). Subject to Article 9, each of the
Parties acknowledges that, other than the Press Release, neither the signing of
this Agreement nor the relationship of the Parties under this Agreement requires
a

                                       18
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                                                                  Execution Copy

press release to be issued, or any other form of public disclosure to be made,
by either Party under any applicable law or requirement, including but not
limited to any requirement of securities law or any stock exchange or market.
Other than the Press Release, neither Party shall issue any press release or any
other form of public disclosure regarding this Agreement or the relationship of
the Parties under this Agreement or use the name of the other Party in any press
release or other publicity ("Agreement Publicity") following the Effective Date,
except as required by a mandatory provision of applicable law and solely to the
extent necessary to comply with such provision of law.

In the event either Party reaches the conclusion that Agreement Publicity is
required after the Effective Date, such party shall inform the other Party of
its conclusion and provide the other Party with the opportunity to review the
Agreement Publicity and the necessity of making the Agreement Publicity at least
ten (10) business days prior to the planned release of the Agreement Publicity
and agrees to take such other Party's input and opinion seriously into account
before releasing the Agreement Publicity.

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

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

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

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

                                       19
<PAGE>

                                                                  Execution Copy

reasonably practical, and shall promptly undertake all reasonable efforts
necessary to cure such force majeure circumstances.

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

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

                                       20
<PAGE>

                                                                  Execution Copy

IN WITNESS WHEREOF, the Parties have executed this Agreement as of the day first
at written.

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

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

                                       21
<PAGE>

                                                                  Execution Copy

                                   SCHEDULE 1

                                    (Patents)

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

                                       22
<PAGE>

                                                                  Execution Copy

                                   SCHEDULE 2

                              (Technology Transfer)

                                      [**]

<PAGE>

                                                                  Execution Copy

                                    EXHIBIT A

                        (Alternative Dispute Resolution)

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

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

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

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

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

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

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

         (d)      If the Parties collectively have identified fewer than three
                  (3) candidates deemed to have conflicts, the CPR immediately
                  shall designate as the neutral the

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<PAGE>

                                                                  Execution Copy

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

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

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

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

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

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

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

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

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

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

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

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<PAGE>

                                                                  Execution Copy

                  examination time shall be charged against the Party conducting
                  the cross-examination.

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

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

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

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

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

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

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

         (b)      If the neutral rules in favor of one Party on some issues and
                  the other Party on other issues, the neutral shall issue with
                  the rulings a written determination as to how such fees and
                  expenses shall be allocated between the Parties. The neutral
                  shall allocate fees and expenses in a way that bears a
                  reasonable relationship to the outcome of the ADR, with the
                  Party prevailing on more issues, or on issues of greater value
                  or gravity, recovering a relatively larger share of its legal
                  fees and expenses.

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                                                                  Execution Copy

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

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

                                       30
<PAGE>

                        Exhibit B (form of press release)

[Critical Therapeutics logo]

CONFIDENTIAL DRAFT

Contact:

     Trevor Phillips, Ph.D.                 or   Scott Solomon
     Vice President of Operations                Vice President
     Critical Therapeutics, Inc.                 Sharon Merrill Associates, Inc.
     617.354.9311 x226                           617.542.5300
     tphillips@criticaltherapeutics.com          ssolomon@investorrelations.com

              CRITICAL THERAPEUTICS IN-LICENSES ASTHMA DRUG PROGRAM
                            FROM ABBOTT LABORATORIES

CAMBRIDGE, MASS., DECEMBER XX, 2003 - Critical Therapeutics, Inc., a privately
held biopharmaceutical company engaged in the discovery and development of
products for critical care medicine, today announced that it has in-licensed
certain rights to both controlled release and intravenous formulations of
zileuton.

Critical Therapeutics plans to develop a controlled-release formulation of
zileuton, which would allow for less frequent dosing. Abbott's immediate release
formulation of the drug (Zyflo filmtab(R), zileuton tablets) received marketing
approval from the US. Food and Drug Administration (FDA) in December 1996, and
is used for the prevention and continuous treatment of asthma in patients 12 and
older. Zyflo filmtab is not part of this agreement.

"As a drug designed to block a key mediator of inflammation, zileuton directly
complements our cytokine-focused product platform," said Paul D. Rubin, M.D.,
Critical Therapeutics' president and chief executive officer. "We are very
excited about adding zileuton to our product pipeline."

Under the agreement, Critical Therapeutics will assume all regulatory,
manufacturing and marketing responsibility for the controlled-release and
intravenous formulations of zileuton. Abbott will receive milestone and royalty
payments based on product sales. The companies did not disclose financial terms
of the agreement.

Zileuton belongs to a class of drugs known as 5-lipoxygenase (5-LO) inhibitors.
The drug inhibits the production of molecules called leukotrienes, which
contribute to conditions present in and around the airways of asthma patients.
These conditions include swelling, bronchoconstriction and mucus secretion. Dr.
Rubin oversaw the work on Zileuton while supervising global clinical and
pre-clinical development at Abbott from 1987 to 1993.

"This agreement provides us with the potential of near-term revenue from a
product that has already completed a Phase III program. While an
immediate-release, four times a day formulation of zileuton has been previously
approved and is available on the market, our goals for controlled release
zileuton are far greater," Dr. Rubin said. "Based on the clinical results
demonstrated in unpublished studies on the product, we see an opportunity to
broaden the use of

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<PAGE>

CTI - ZILEUTON/2

zileuton through new indications and new formulations. From a cost-benefit
perspective, our licensing agreement with Abbott is the ideal mechanism for both
companies to realize an excellent return from this initiative."

Asthma affects approximately 20.3 million Americans, according to the American
Academy of Asthma Allergy & Immunology. Direct health care costs for the disease
exceed, $8.1 billion annually, with pharmaceuticals representing the largest
share of those costs.

SAFETY INFORMATION

Zyflo Filmtab(R) (zileuton tablets) is not for use in the reversal of acute
asthma attacks.

Patients with active liver disease should not take Zyflo. Liver function tests
are recommended prior to and during treatment with Zyflo.

When taking Zyflo, theophylline dose should be reduced by 50% and appropriately
monitored; patients taking propranolol or warfarin should be monitored and doses
adjusted if necessary.

The only adverse event reported significantly more often by Zyflo patients than
placebo-treated patients was upset stomach (8.2% vs. 2.9%, respectively).

Further information regarding Zyflo, including full prescribing information, is
available from Abbott Medical Information by calling 800-633-9110.

CRITICAL THERAPEUTICS

Critical Therapeutics, Inc. is a privately held biopharmaceutical company
focused on critical care medicine. CTI's mission is the discovery, development
and commercialization of novel therapies for the treatment of acute trauma,
cardiopulmonary disease and infectious and inflammatory illness. The Company's
current research and development portfolio includes HMGB-l, a pro-inflammatory
substance identified as a mediator of TNF-associated tissue damage; development
of small molecule and vagal nerve stimulation approaches to treat inflammation;
and CTI-0l, a proprietary anti-inflammatory drug candidate currently in Phase I
clinical trials. The Company is headquartered in Cambridge, Massachusetts. More
information about CTI is available at www.criticaltherapeutics.com

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