Novoste Corporation                                                Exhibit 10.25

THIS AGREEMENT made in duplicate this 14th day of October, 1999,

BETWEEN:                AEA TECHNOLOGY-QSA, GMBH
                              having a place of business at
                              Gieselweg 1
                              D-38110, Braunschweig
                              GERMANY
   ("QSA")
AND:                       NOVOSTE CORPORATION
                              having a place of business at
                              3890 Steve Reynolds Boulevard
                              Norcross, GA 30093 USA
   ("Novoste")

WHEREAS:

I.    Novoste is the owner of certain patents, data, information and technology
      related to the treatment of coronary artery restenosis;

II.   QSA has expertise in the production and processing of radioactive
      material, including the necessary patents, know-how, techniques, methods,
      processes and trade secrets for the development and manufacture of sealed
      sources and dosimetry;

III.  Novoste desires that QSA manufactures Sr90 sources to meet Novoste's
      commercial supply requirements; and

IV.   Novoste desires that QSA develops the required sources, construct a
      facility at its site in Braunschweig, Germany, and then to manufacture
      Novoste's requirements for Sr90 sources, in accordance with the terms,
      conditions and specifications set out herein.

NOW THEREFORE in consideration of the mutual covenants and agreements herein
contained, and subject to the terms and conditions hereinafter set out, the
Parties hereto agree as follows:


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                             ARTICLE 1 - DEFINITIONS

For the purposes of this Agreement:

1.1   "Affiliated Company" shall mean either

      (a) a company which is at least majority owned or majority controlled by a
      Party hereto or which holds at least a majority interest or majority
      control in such Party;
      or
      (b) a parent company to one of the Parties hereto

1.2   "Batch" shall mean a production batch of Source Trains manufactured by QSA
      under this Agreement.

1.3   "Background Technology" shall mean all QSA or its Affiliated Company(s)
      proprietary technology, including patents, know-how, techniques, methods,
      processes and trade secrets which is required for the purposes of
      performing the obligations of QSA under this Agreement and which is owned
      by QSA or its Affiliated Company(s), or which QSA is authorized to use, or
      which is licensed to QSA from third parties and which is in existence in
      the form of a written, description, prototype or can otherwise be
      demonstrated to be the property of QSA or its Affiliated Company(s), prior
      to the Effective Date.

1.4   "Clinical Trials" shall mean animal and human trials for clinical
      development of the Medical Device.

1.5   "Commercial Phase" shall mean the period commencing at the date of the
      first commercial sale of Sources from QSA to Novoste which have been
      manufactured in the Facility, for Novoste after receipt of marketing
      authorization from the appropriate Regulatory Authorities.

1.6   "Development Phase" shall mean the period commencing from the Effective
      Date until completion to Novoste's reasonable satisfaction of the
      activities described in Schedule A and any other schedules referred to in
      Schedule A.

1.7   "Effective Date" shall mean the date first written above.

1.8   "Equipment(s)" shall mean the moveable assets to be purchased or
      manufactured by QSA for and on behalf of Novoste. Said equipment will be
      detailed in project invoices from QSA to Novoste and will be clearly
      tagged and identified as Novoste property.

1.9   "European Authority" shall mean Novoste's Notified Body.

1.10  "Facility" shall mean the production line facility to be constructed by
      QSA in its currently existing factory in Braunschweig, Germany, as
      described in Schedule B and which will be constructed and installed for
      the production of Sources. The post billet part of the Facility shall be
      for the sole use of satisfying the requirements of this Agreement.


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<PAGE>

1.11  "Facility Program" or "Facility Phase" shall mean the program for the
      construction of the Facility as described in Article 5.

1.12  "Hot Cell(s)" shall mean the assets to be purchased or manufactured by QSA
      for and on behalf of Novoste and installed in the Facility for the term of
      this Agreement (unless QSA exercises the option under Article 6.1 (ii)),
      as more specifically defined in Schedule "B".

1.13  "Initial Term" shall have the meaning set forth in Article 3.1 hereof

1.14  "Initial Term Notice" shall mean the written notice by either Party which
      shall be given at least eighteen (18) months prior to the end of the
      Initial Term and by which the notifying Party informs the other Party that
      it does not wish to extend the term of the Agreement beyond the Initial
      Term.

1.15  "Isotope" or "Sr-90" shall mean Strontium 90 radio-chemical.

1.16  "Jointly Owned Arising I P" shall mean any and all improvements or changes
      to the Background Technology funded by either Party under this Agreement.
      All such improvements shall be jointly owned by the two Parties hereto and
      used by them only in conformity with this Agreement.

1.17  "Major Repair(s)" shall mean a repair to a given asset entailing
      expenditures in excess of the lesser of:

      (i)   twenty-five per cent (25%) of the subject asset's purchase price as
            determined at the time of purchase by the invoice price less any
            discounts received, or

      (ii)  twenty-five thousand euros ((euro)25,000).

1.18  "Medical Device" shall mean Novoste's Beta-Cath System(TM) as described in
      Schedule C.

1.19  "Minimum Batch Size" shall mean the minimum number of Source Trains to be
      assembled in one batch and the number of which is to be mutually agreed in
      writing prior to the commencement of the Commercial Phase.

1.20  "Notice of Termination" shall mean the written notice given by either
      Party to the other Party to terminate the Agreement after the Initial Term
      has ended. Notice of Termination must be given at least eighteen (18)
      months prior to the date of effective termination.

1.21  "Novoste Notified Body" shall mean TUV Product Services.

1.22  "Novoste Technology" shall mean all Novoste proprietary technology,
      including patents, know-how, techniques, methods, processes and trade
      secrets which is required for the purposes of performing the obligations
      of Novoste under this Agreement and which is owned by Novoste, or which
      Novoste is authorized to use, or which is licensed to Novoste from third
      parties and which is in existence in


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      the form of a written, description, prototype or can otherwise be
      demonstrated to be the property of Novoste, prior to the Effective Date.

1.23  "Process" shall mean the process of formulation, dispensing,
      encapsulation, de- encapsulation, re-encapsulation, inspection and testing
      of Sources to meet Novoste's Specification.

1.24  "QSA Repairs" shall mean repairs or maintenance to the Equipment and Hot
      Cells that are necessary through QSA's abuse, improper operation,
      inadequate maintenance, negligence or willful misconduct.

1.25  "Scheduled Batch Completion Date" The date for which QSA has received
      final confirmation from Novoste that a Batch is required. Such
      confirmation from Novoste will be given at intervals no less than 14
      (fourteen) days prior to when dispatch is required by Novoste

1.26  "Specification(s)" shall mean those specifications for the Source and
      Source Trains set out in Schedule D.

1.27  "Source(s)" shall mean encapsulated Sr-90 material produced using the
      Process which meet the Specifications.

1.28  "Source Train(s)" shall mean a set of Sources (presently 2.5mm in length)
      in varying train lengths (presently 30mm, 40mm, 50mm and 60mm) meeting the
      Specifications suitable for use in the Medical Device.

1.29  "Transfer Date" shall have the meaning set forth in Article 6.1 sub-clause
      (v) hereof.

1.30  "United States Authority" shall mean the United States Food and Drug
      Administration.

1.31  "Validation" shall mean the program mutually agreed to by the Parties by
      which documented evidence provides assurance that the Process will
      consistently produce Sources that meet Specifications and quality
      attributes, to the reasonable satisfaction of both Parties and the
      appropriate Regulatory Authorities.

                               ARTICLE 2 - PURPOSE

2.1   Scope and Object

      The scope and object of the Agreement is to complete the development of
      Sources in accordance with the development responsibilities and
      obligations attributed to each of the Parties as set out in this
      Agreement. In addition, this Agreement shall provide for the construction
      of a Facility at QSA's manufacturing site in Braunschweig, Germany, for
      the manufacture of Sources and the supply of Source Trains for Clinical
      Trials and commercial sales.


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                                ARTICLE 3 - TERM

3.1   Initial Term

      The initial term of this Agreement shall commence upon the Effective Date
      and, unless terminated earlier pursuant to this Agreement, shall continue
      until the fifth anniversary of the commencement of the Commercial Phase
      ("Initial Term").

3.2   Extension

      The term of this Agreement shall be automatically extended after
      expiration of the Initial Term unless either Party has given Initial Term
      Notice to the other Party. At least two years prior to the end of the
      Initial Term, the Parties agree to meet in order to discuss, in good
      faith, their intentions with respect to whether or not to continue the
      term of this Agreement beyond the Initial Term.

                          ARTICLE 4 - DEVELOPMENT PHASE

4.1   Development Activities

      During the Development Phase, QSA and Novoste shall respectively carry out
      their obligations described and attributed in Schedule "A", it being
      understood that some activities may be reasonably delayed to the extent
      that such activity is premised on the work or provision of data,
      information or technology by the other Party which such other Party does
      not provide on a timely basis. Each Party shall use their best efforts in
      order to carry out their respective obligations and responsibilities set
      out in Schedule "A" to the timescales specified.

      The Parties acknowledge and agree that Schedule "A" may only be amended
      during the course of the Development Phase to accommodate unforeseen
      events and results beyond the reasonable control of the Parties. All such
      changes to Schedule "A" shall be made by written agreement of the Parties.

      The Project Managers (as specified at Article 22.1) will meet at least
      quarterly, at locations to be agreed, including videoconferencing, for the
      purpose of reviewing the status of the project and to assess progress
      against the milestones and activities set forth in Schedule "A". QSA shall
      also provide written reports to Novoste, on a monthly basis, setting out
      the progress against milestones set forth in Schedule "A".

      If Novoste has reasonable grounds to be dissatisfied with respect to any
      failure by QSA to meet its obligations described in Schedule A, Novoste,
      following written notice to QSA, may suspend payments otherwise due QSA
      and may suspend performance of its other obligations hereunder until
      reasonable satisfactory progress is achieved by QSA, or Novoste may
      terminate this Agreement by giving thirty (30) days written notice to QSA.
      Following such notice or notice under Article 4.2 hereto, QSA shall
      endeavor to bring all activities to a timely end, however QSA shall have
      the right to claim from Novoste reimbursement of all reasonable costs
      necessarily and properly incurred by them in relation to the


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<PAGE>

      orderly cessation of the work, including any commitments, liabilities or
      expenditure which are reasonably and properly incurred and would otherwise
      represent an unavoidable loss by QSA by reason of the termination of this
      Agreement. For the avoidance of doubt Novoste will not indemnify QSA
      against loss of future profit.

4.2   Development Phase Termination

      At each quarterly review meeting of the Project Managers an assessment
      shall be made of the progress of the Development Stage and the ability of
      both Parties to fulfill the terms of this Agreement. Should both Parties
      agree in writing during the Development Phase that it is no longer
      possible to fulfill the terms of this Agreement, then this Agreement shall
      be terminated.

                          ARTICLE 5 - FACILITY PROGRAM

5.1   Construction of Facility

      Subject to successful completion of the relevant parts of the Development
      Phase to the satisfaction of Novoste, QSA shall construct the Facility at
      its site in Braunschweig, Germany to carry out the manufacture of Sources.
      QSA will use its commercially reasonable best efforts to complete the
      Facility Program in accordance with the Gantt Chart set forth in Schedule
      B. Schedule B may only be modified as agreed in writing by the Parties. If
      Novoste has reasonable grounds to be dissatisfied with the performance of
      QSA in constructing the Facility in accordance with the Facility Program
      or in accordance with Schedule B, Novoste may, following written
      notification to QSA, suspend payments otherwise due QSA and Novoste may
      suspend performance of its other obligations hereunder until satisfactory
      performance is achieved or Novoste may terminate this Agreement by giving
      thirty (30) days written notice to QSA. Following such notice, QSA shall
      endeavor to bring all activities to a timely end, however QSA shall have
      the right to claim from Novoste reimbursement of all reasonable costs
      necessarily and properly incurred by them in relation to the orderly
      cessation of the work, including any commitments, liabilities or
      expenditure which are reasonably and properly incurred and would otherwise
      represent an unavoidable loss by QSA by reason of the termination of this
      Agreement. For the avoidance of doubt Novoste will not indemnify QSA
      against loss of future profit.

5.2   Facility Program Capital Cost

      The actual capital cost of the Facility Program will be calculated on a
      time and materials basis as set out in Article 9.1. The facility shall be
      completed by QSA by February 16, 2001. The budgeted capital cost for
      performance of the Facility Program by QSA is estimated at the Effective
      Date to be three million, seven hundred and sixty-four thousand euros
      ((euro)3,764,000). Any cost in excess of the estimated budgeted capital
      cost shall be subject to the prior written authorization of Novoste.


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                           ARTICLE 6 - ASSET OWNERSHIP

6.1   Equipment

      (i)   Under this Agreement QSA will purchase or manufacture, on behalf of
            Novoste, the Hot Cell(s) and Equipment, which will be installed in
            the Facility as described in Schedule B. Upon completion of the
            purchase or manufacture of the Hot Cell(s) and Equipment, a warranty
            bill of sale in a form reasonably acceptable to Novoste, shall be
            executed and delivered to Novoste transferring full title to such
            Hot Cell(s) and Equipment dedicated to Novoste requirements free and
            clear of all liens, claims, or encumbrances. Subject to Novoste's
            obligations to transfer ownership of the Hot Cell to QSA under
            circumstances as set forth in this Agreement, Novoste shall at all
            times hold all right, title and interest in the Hot Cell and
            Equipment; provided, however, that during the term of this
            Agreement, usage thereof shall belong exclusively to QSA for the
            purposes of producing Sources for Novoste at the Braunschweig,
            Germany site. Since the Equipment will be in QSA's possession, QSA
            represents and warrants that the Hot Cell(s) and Equipment shall not
            be encumbered, and shall, during the term of this Agreement, remain
            free and clear of any and all encumbrances including, but not
            limited to, mortgages, charges and liens and that no effective
            financing statement, pledge or other instrument similar in effect
            covering all or any part of the Hot Cell(s) or Equipment has been
            agreed or will be agreed by QSA or Parties claiming by, through or
            under QSA.

      (ii)  In partial consideration of the services to be performed hereunder
            by QSA and in consideration of the payment of one dollar ($1.00) the
            sufficiency of which is hereby acknowledged, on the earlier of the
            natural expiration or termination of this Agreement by Novoste (for
            whatever reason other than the default by QSA), should QSA wish to
            retain the use of the Hot Cell(s), Novoste agrees without further
            notice or demand to transfer all of its right, title and interest in
            and to the Hot Cell and Equipment to QSA. After transfer of title,
            QSA will following such transfer be responsible for any
            decontamination or decommissioning costs of the Facility.

      (iii) At the conclusion of this Agreement (for what ever reason) the Hot
            Cell and other dedicated Equipment at Braunschweig, will need to be
            decontaminated . This shall be the responsibility of Novoste unless
            QSA is able and chooses to exercise its option to acquire title to
            the Hot Cells and Equipment. At the time of the completion of the
            Facility, February 16, 2001, Novoste shall establish an Escrow
            Account for the estimated cost to Decontaminate and Decommission the
            Facility (currently estimated at (euro)127,748). This Escrow Account
            shall be funded either by cash in a German bank account or by an
            irrevocable letter of credit, and be held by Novoste's attorney.
            Should QSA decline to exercise its option, or fail to be allowed to
            exercise the option due to its default of this Agreement, to own the
            Hot Cell and the Equipment, then upon the natural expiration or
            termination of this Agreement by Novoste the funds established by
            Novoste in the "Decontamination and Decommissioning" Escrow Account


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            or through the letter of credit will be made available to QSA and
            shall be used exclusively for the decontamination and
            decommissioning of the Hot Cell(s) and any other Equipment prior to
            their removal by Novoste from the Braunschweig site. Should QSA
            exercise the option to own the Hot Cell(s) and the Equipment, then
            the funds held in the Escrow Account will revert to Novoste or the
            letter of credit canceled. At each calendar year end during this
            Agreement, Novoste will increase or decrease the balance of the
            Escrow Account or the letter of credit to reflect the reasonable
            costs of Decontamination and Decommissioning as estimated by QSA. If
            the balance of the Escrow Account exceeds the funds necessary for
            Decontamination and Decommissioning, the excess shall be returned to
            Novoste immediately upon completion of Decontamination and
            Decommissioning.

      (iv)  Except as may be provided in accordance with Article 16.1 sub-clause
            (vii), in no event may QSA use or permit any third Party to use the
            Hot Cell(s) or Equipment for the manufacture of any Source or Source
            Trains, any products which use technology of Novoste, or any
            products which could compete with the sale of Sources or the Medical
            Device (including the Source or Source Train) by Novoste. If title
            to the Equipment and Hot Cell(s) is obtained by QSA, QSA may not
            sell, transfer, lease, or permit the use of the Hot Cell(s) or the
            Equipment by third parties without first notifying Novoste and
            providing Novoste the opportunity to match the terms of any such
            sale, transfer, lease, or permit. Should Novoste decline to exercise
            such an option to purchase or acquire use of the Equipment and Hot
            Cell(s) then QSA shall be relieved of all obligations under this
            Article.

      (v)   It is understood that Novoste may finance the purchase and
            construction of the Hot Cell(s) and Equipment through debt and
            provide a preferred security interest (Sicherungseigentum) in the
            Hot Cell(s) and Equipment to a financing institution or other
            lender. Until such time as Novoste has made the transfer as set out
            in Article 6.1sub-clause(ii) or has otherwise transferred ownership
            of the Hot Cell(s) or Equipment as set out elsewhere in this
            Agreement (the "Transfer Date"), QSA shall have, and is hereby
            granted a secondary security interest (nachrangiges
            Anwartschaftsrecht auf Sicherungseigentum) in and to the Hot Cell(s)
            behind any security interest provided to any financing institution
            or other lender. The secondary security interest in the Hot Cell(s)
            and the provision for eventual Decontamination and Decommissioning
            set forth above shall be perfected by possession of the Hot Cell(s)
            by QSA and shall be effective as of the date of commencement of
            installation of such Hot Cell(s) and shall serve as collateral for
            the carrying out of the obligations of Novoste set out in this
            Agreement. Until the Transfer Date, QSA at all times during the Term
            of this Agreement shall be entitled to the use and possession of the
            Hot Cell(s) and Equipment in accordance with this Agreement, and the
            Hot Cell(s) and Equipment, shall be maintained and preserved by QSA
            at its expense in accordance with the provisions set out in this
            Agreement. Novoste shall execute all documents reasonably required
            to provide a secondary security interest in and to the Hot Cell(s)
            to QSA.


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      (vi)  The labor rates and material handling markups on assets constructed
            by QSA or its affiliates for this Phase are set forth at Article 9.1
            hereto.

             ARTICLE 7 - GENERAL MANUFACTURE AND SUPPLY OBLIGATIONS

7.1   Source Supply

      QSA agrees to use the Process to produce Sources that meet the
      Specifications in conformity with all applicable laws, rules and
      regulations of Germany, the European Union and the United States and to
      ship Source Trains as directed by Novoste. Subject to the provisions of
      Article 27, during the Initial Term of this Agreement and any renewal or
      extension thereof, QSA shall manufacture as provided in the preceding
      sentence and provide Novoste with Source Trains which shall be ordered by
      Novoste under this Agreement for the purposes of clinical trials and
      commercial sale of the Medical Device.

7.2   Batch Size and Minimum Purchase Commitment

      Novoste agrees that it shall order Source Trains at the price set forth in
      Article 9.3 in batch sizes no smaller than the Minimum Batch Size. Novoste
      further agrees that it shall purchase from QSA a minimum of XXXXX Source
      Trains during each twelve months period after commencement of the
      Commercial Phase for the remaining period of this Agreement. Should
      Novoste not order the minimum number of Source Trains in any twelve month
      period from the commencement of the Commercial Phase, then it shall pay
      QSA a penalty of XXXXX of the price for the difference between the number
      of actual Source Trains ordered and the minimum purchase requirement for
      that period.

7.3   Testing and Documentation

      QSA shall certify in writing, to Novoste, and shall provide backup
      evidence as requested, that each Batch of Source Trains was produced and
      tested in compliance with:

      (i)   the Specifications; and

      (ii)  all applicable laws, rules and regulations of Germany, the European
            Union and the United States, and in accordance with procedures
            agreed between Novoste and QSA.

      The tests and analyses provided in the Specifications as well as the
      nature and form of written certification may be amended from time to time
      only by mutual

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Confidential treatment has been requested for portions of this page of this
exhibit. The copy filed herewith omits the information subject to the
confidentiality request. Omissions are designated as "XXXXX". The portions
omitted have been filed separately with the Securities and Exchange Commission
pursuant to such request for confidential treatment.


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      written consent of the Parties.

7.4   Repairs and Maintenance

      After the Facility is installed, QSA shall maintain such Facility, Hot
      Cell(s) and Equipment in satisfactory operating condition as required to
      enable QSA to manufacture Sources to Specification in accordance with the
      Process and all other applicable laws, regulations, rules or orders. In
      the event of any conflict between the applicable laws, regulations, rules
      or orders, QSA will notify Novoste of such conflict and the Parties shall
      act in good faith to resolve such conflict or to determine which laws,
      regulations, rules or orders should take precedence. Routine repairs,
      preventive maintenance and service contracts for the Facility and
      Equipment shall be arranged by QSA.

                         ARTICLE 8 - GENERAL OBLIGATIONS

8.1   Isotope Supply

      QSA shall obtain Sr90 in sufficient quantities to meet its obligations
      hereunder. QSA shall at all times own the Sr90 until incorporated into
      Sources and title for the Sources passed to Novoste.

      QSA shall contract for the supply of the amount of Isotope necessary for
      QSA's production of Sources pursuant to this Agreement. Should QSA have
      difficulty in procuring Strontium 90 at competitive prices, Novoste shall
      be free to secure such supplies for QSA as are necessary for the
      production of the Sources and Source Trains pursuant to this Agreement.
      Where Novoste supplies the Strontium 90, the cost to Novoste of the
      Sources shall be adjusted accordingly.

8.2   Unavailability or Scarcity of Isotope

      It is understood that QSA's obligation to supply Isotope is conditional,
      depending upon its ability to obtain a sufficient supply of the Isotope.
      QSA will use its best efforts to locate and obtain a sufficient supply of
      Isotope to manufacture Sources required by Novoste. QSA will notify
      Novoste upon QSA's first knowledge of a shortage or likelihood of any
      shortage of Isotope if such shortage will impact the manufacture of the
      Sources. Except as set out below, QSA shall not be liable for any delays
      in the supply of Isotope if due to causes described in Article 27 hereof.

8.3   Production Planning for Clinical Trail and Commercial Supply

      During the first five (5) business days of each month commencing with the
      Commercial Phase of this Agreement, QSA and Novoste will establish a
      schedule of Batch runs for the next eight (8) weeks. Novoste shall provide
      QSA with confirmation of Batch orders no later than fourteen (14) days
      prior to a Scheduled Batch Completion Date. QSA shall be under an
      obligation to deliver to Novoste the confirmed Batch order within the
      agreed time schedule for such delivery. This approach to production
      planning may be modified as mutually agreed to by the


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      Parties based upon Novoste's and QSA's experience in clinical and
      commercial supply.

                              ARTICLE 9 - PAYMENTS

9.1   Development and Facility Program

      As with the previous Agreements signed by the two Parties hereto, in
      performing the Development Phase, QSA will invoice Novoste quarterly in
      arrears, providing an adequate description of the work billed. In the
      Facility Program, QSA will provide labor at the hourly billing rates
      detailed at Schedule B, and will provide materials and equipment at QSA's
      cost plus an additional ten per cent (10%) administration fee. All charges
      not included in Schedule A or B hereto shall be subject to the prior
      written approval of Novoste. Charges shall be due only for services,
      material and equipment authorized by the terms of Schedule A or Schedule
      B. Monthly invoices that include detailed cost statements shall be
      submitted to Novoste for work performed during the prior month.

      If QSA is required to purchase items of Equipment or items necessary for
      the production of Equipment that cost more than (euro)15,000, Novoste
      shall pay such amounts one week in advance of QSA making such payments to
      third parties.

9.2   Payment for Repairs and Maintenance

      QSA shall be responsible for the payment of all repair and maintenance
      costs. Novoste will repay all reasonable expenses for any Major Repairs to
      or replacement of the Equipment except for QSA Repairs. All costing for
      all repairs shall be on the same basis as the Facility Phase.

      The maximum amount QSA will be required to pay in any calendar year for
      routine repairs, preventive maintenance and service contracts for the
      Facility and Equipment shall be fifty thousand euros ((euro)50,000), plus
      all amounts required for QSA Repairs. Any reasonable amounts for routine
      repairs, preventive maintenance and service contracts for the Facility and
      Equipment other than QSA Repairs in excess of fifty thousand euros
      ((euro)50,000) in any calendar year will be borne by Novoste. Preventive
      maintenance and service contracts for the Equipment in excess of
      twenty-five thousand euros ((euro)25,000) which are approved in advance by
      Novoste will be borne by Novoste. All amounts set forth in this Article
      shall be based on QSA's out-of-pocket costs and QSA's standard internal
      labour rates. QSA shall co-ordinate with and advise Novoste regarding the
      advisability of any Major Repair or replacement. The only repairs, if any,
      to the Facility or Equipment which shall be borne by Novoste are those set
      forth in this Article. All other repairs shall be borne by QSA.

9.3   Purchase Price for Source Trains

      Prior to the commencement of the Commercial Phase, the Parties shall agree
      the price that shall be paid by Novoste for each Source Train that QSA
      produces to Specification. Such price shall not exceed XXXXX per Source,
      exclusive of all


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      packaging and taxes, but inclusive of the cost of disposal of the Sources
      at the end of the useful life of the Source Train.

9.4   Price Escalation

      XXXXX. It is therefore Novoste's expectation that there will be no price
      increase from QSA during the first two years of this Agreement after
      commencement of the Commercial Phase. QSA will be free, and is encouraged,
      to improve its gross margins by improvements in processes, scrap
      reduction, inventory management, etc. The prices for the subsequent years
      will be determined in advance by applying the average annual change in the
      German cost of living index over the preceding two years in year three and
      in the previous year for all subsequent years. Should this price increase
      calculated by using the German cost of living index exceed five percent,
      then the increase shall be calculated based upon QSA's relevant average
      annual actual rise in costs.

      It is understood that the costs of operating the Facility can be suddenly
      increased as a result of direct or indirect Regulatory changes - such as
      via the costs of conditioning and disposal of radioactive arisings. Should
      such significant changes arise at any time after the Effective Date then
      QSA shall immediately inform Novoste and the Parties shall agree a price
      increase based upon QSA's actual rise in costs.

9.5   Payment Terms

      Except as otherwise provided herein, all invoices shall be paid within 30
      days. Where there is any dispute with regard to any item on any cost
      statement and or invoice, payment for that item shall be withheld until
      such time as any dispute is settled. Payment shall not be withheld from
      any item that is not under dispute.

      All payments, costs and prices included in this Agreement shall be
      exclusive of all taxes.

9.6   Currency

      Unless otherwise specified, all sums set out in this Agreement shall be in
      Euros.

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Confidential treatment has been requested for portions of this page of this
exhibit. The copy filed herewith omits the information subject to the
confidentiality request. Omissions are designated as "XXXXX". The portions
omitted have been filed separately with the Securities and Exchange Commission
pursuant to such request for confidential treatment.


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9.7   Audit

      QSA shall keep accurate books and accounts of record in connection with
      the manufacture by it of the Sources in sufficient detail to permit
      accurate determination of all figures necessary for verification of all
      compensation required to be paid pursuant to Article 9. QSA shall maintain
      such records for a period of three (3) years after the end of the year in
      which they were generated. These records may be audited by Novoste in
      accordance with this Agreement, and shall be available for review by
      Novoste at any time upon reasonable notice.

      Except as provided below, Novoste, at its sole expense and through its
      accounting personnel or, if Novoste elects, through an independent
      certified public accountant reasonably acceptable to QSA, shall have the
      right to examine the books and records of QSA relating to the activities
      of QSA hereunder and compensation due QSA hereunder for the sole purpose
      of verifying such statements. Such audit shall be conducted upon six (6)
      weeks' prior written notice to QSA during ordinary business hours, and
      shall not be more frequent than once during each calendar year except for
      those records pertaining to the supply of Strontium 90. In the case of
      Strontium 90 records, these can be inspected with 5 days notice at
      intervals no shorter than three (3) months. Novoste agrees to keep in
      strict confidence all information learned in the course of such audits,
      except when it is necessary to reveal such information in order to enforce
      its rights under this Agreement. Novoste's right to have such records
      examined shall survive termination or expiration of this Agreement for a
      period of one (1) year. As each Phase of this Agreement shall be priced
      and invoiced in a different manner, any financial audits undertaken by
      Novoste, shall be done in a way that is appropriate for the type of
      pricing and invoicing that was undertaken. In all events, QSA shall
      promptly remit to Novoste the amount of any overpayment, plus interest at
      the rate of 10% per annum from the date such payment was received by QSA
      until repaid to Novoste. In addition, if the audit reveals an overcharge
      of more than ten percent (10%) of the amount due, QSA shall reimburse
      Novoste for the cost of the related audit and any costs incident thereto,
      including attorney's fees and all costs of collection. Should such audits
      reveal that QSA have undercharged Novoste, then Novoste shall promptly
      remit to QSA such sums as have not been recovered.

                        ARTICLE 10 - ORDERS AND SHIPMENTS

10.1  Orders and Shipments

      During the term of this Agreement, Novoste will forward orders to QSA by
      facsimile (or other suitable means). Such orders shall include the
      identity of the recipient and delivery destination. Delivery of Source
      Trains to Novoste or as otherwise directed by Novoste shall be ex-Works
      transport vehicle at QSA's facility in Braunschweig, Germany. Risk for the
      goods shall pass to Novoste at point of delivery to the transport vehicle.
      Title to the goods shall pass to Novoste upon QSA receiving payment from
      Novoste.


                                       13
<PAGE>

      During the term of this Agreement QSA shall subject to Article 27.1, meet
      Novoste's orders and delivery requirements.

      Prior to the first shipment of Source Trains to any third Party site, QSA
      shall obtain from such third Party its license evidencing proper legal
      authority for the receipt and possession of the Source Trains by such
      third Party. If QSA is unable to obtain such license from the third Party,
      Novoste, upon QSA's request, shall obtain and provide such evidence of
      legal authority for the receipt and possession of the Source Trains by
      such third Party. Novoste shall obtain all approvals, licenses and permits
      required to import the Source Trains into any territory where Novoste
      directs shipments to be sent.

      QSA shall make shipping arrangement with carriers designated in writing by
      Novoste from the ex-Works point to the delivery site. All transportation
      and packaging costs incurred to deliver Source Trains ordered by Novoste
      shall be borne by Novoste.

10.2  Batch Not Meeting Specifications

      If either Party or its designee discovers that a Batch of Source Trains
      does not meet the Specifications, then the discovering Party shall
      promptly communicate in writing with the other Party to determine a
      mutually agreed course of action. With respect to any such Batch of Source
      Trains which do not meet Specifications, QSA will promptly:

      (i)   replace such Batch of Source Trains at no additional cost (with QSA
            also paying all costs to deliver such replacement Batch to the
            Novoste designated site);

      (ii)  reimburse Novoste for its actual costs incurred to return the Source
            Trains to QSA and for any purchase price paid by Novoste for such
            Source Trains; and

      (iii) indemnify Novoste for any other costs it incurs by reason of such
            Batch of Source Trains or single Source Trains not meeting
            Specifications. Such costs shall exclude any loss of profits or any
            other form of consequential loss.

10.3  Inventory Requirements

      Within one month of the commencement of the Commercial Phase of this
      Agreement, QSA shall maintain a minimum Source inventory of XXXXX Sources.
      This minimum inventory stock level shall be reviewed by QSA and Novoste at
      semi-

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Confidential treatment has been requested for portions of this page of this
exhibit. The copy filed herewith omits the information subject to the
confidentiality request. Omissions are designated as "XXXXX". The portions
omitted have been filed separately with the Securities and Exchange Commission
pursuant to such request for confidential treatment.


                                       14
<PAGE>

      annual intervals to ensure compatibility with recent purchasing volumes.
      Upon Termination of this Agreement for any reason whatsoever, Novoste
      shall purchase the minimum inventory stock at QSA.

                              ARTICLE 11 - LICENSE

11.1  Royalty Free Licenses

      Novoste hereby provides to QSA a non-exclusive, non-transferable, royalty
      free license during the term of this Agreement to use Novoste Technology,
      for the sole purpose of assisting QSA in carrying out its obligations set
      out in this Agreement or when mutually agreed to develop and manufacture
      products supporting the use of Novoste's products. QSA hereby provides to
      Novoste a non-exclusive, non-transferable, royalty free license during the
      term of this Agreement to the Background Technology, for the sole purpose
      of assisting Novoste in carrying out its obligations set out in this
      Agreement or when mutually agreed to develop and manufacture products
      supporting the use of Novoste's products.

               ARTICLE 12 - NOVOSTE REPRESENTATIONS AND WARRANTIES

12.1  Novoste Warranties

      Novoste represents, warrants and covenants that:

      (i)   it has full right, power and authority to enter into this Agreement;

      (ii)  it is the owner or licensee, in Germany, the United Kingdom and the
            United States, of the patents, data, information and technology
            supplied to QSA by Novoste to assist QSA in carrying out its
            obligations hereunder;

      (iii) exercise of the patent(s) and technology provided by Novoste do not,
            to Novoste's best information and belief, infringe any patents,
            copyright or other industrial or intellectual property rights of
            third parties;

      (iv)  it has the right to provide any license and right to permit QSA to
            use the patents and technology related to the Sources provided to
            the extent required to assist QSA in carrying out its obligations
            under this Agreement;

      (v)   it has not received any notice of adverse claim or infringement of
            any patent or misappropriation of trade secrets in connection with
            the use and exploitation of the patents, data, information and
            technology provided hereunder and related to the Sources; and

      (vi)  this Agreement has been duly authorized by all necessary corporate
            action and constitutes a valid and binding agreement of Novoste,
            enforceable in accordance with its terms.


                                       15
<PAGE>

      The foregoing warranties shall be in lieu of and shall exclude all other
      warranties (as conditions) expressed or implied, statutory or otherwise,
      including any implied warranties (as conditions) of merchantability or
      fitness for a particular purpose.

             ARTICLE 13 - NOVOSTE'S INTELLECTUAL PROPERTY INDEMNITY

13.1  Indemnification of QSA

      Novoste hereby agrees to indemnify, defend and hold QSA, its Affiliates
      and all of the officers, directors, employees, and agents of QSA and its
      Affiliates harmless from any and all damages directly suffered by them
      arising out of or related to (a) the breach or falsity of any
      representation of Novoste contained herein or (b) the negligent or willful
      misconduct of Novoste or its officers, directors, employees or agents, or
      (c) any breach by Novoste of its obligations hereunder.

      Novoste shall indemnify and hold QSA harmless from and against any
      liabilities, claims, damages and expenses (including reasonable attorney's
      fees) which QSA may be compelled to pay in any judgment, claim or action
      arising from infringement, of third Party copyright, patents, technology
      or other intellectual property rights, resulting from QSA's use of any
      data, information, technology or patents, as provided by Novoste
      hereunder. QSA shall give written notice of any such legal action promptly
      after QSA's first knowledge thereof. Novoste shall have sole and exclusive
      control of the defense of any legal action, including the choice and
      direction of any legal counsel. QSA may not settle nor compromise any
      legal action without the prior written consent of Novoste. This indemnity
      shall survive termination of the Agreement.

      This Article shall not apply to any liability resulting from the use of
      the aforementioned intellectual property for unauthorized purposes.

      In the event that any portion of the Novoste Technology is, in Novoste's
      reasonable opinion, likely to or does become the subject of a claim for a
      patent, copyright or other industrial or intellectual property rights
      infringement, Novoste reserve the right and may at its option:

      (i)   procure the right to continue using the technology; or

      (ii)  modify the technology to become non-infringing.

                ARTICLE 14 - QSA'S REPRESENTATIONS AND WARRANTIES

14.1  QSA's Representations and Warranties

      QSA represents, warrants and covenants that:

      (i)   It has full right and authority to enter into this Agreement;


                                       16
<PAGE>

      (ii)  It is the owner or has legal rights of use of its data, information
            and technology contributed with respect to the Process;

      (iii) The data, information and technology contributed by QSA does not, to
            QSA's best information and belief, infringe any patents, copyright
            or other industrial or intellectual property rights of third
            parties;

      (iv)  It has not received any notice of adverse claim of infringement of
            any patent or misappropriation of trade secret or any other
            intellectual property rights in connection with the use and
            exploitation of the data, information and technology used with
            respect to the Process;

      (v)   There is no action or proceeding pending or insofar as QSA knows or
            ought to know, threatened against QSA before any court,
            administrative agency or other tribunal which might have a material
            adverse effect on QSA's business; and

      (vi)  This Agreement has been duly authorized by all necessary corporate
            and government action and constitutes a valid and binding agreement
            of QSA, enforceable in accordance with its terms.

14.2  Source Train Product Warranty

      Source Trains will be warranted by QSA as being free from any defect in
      material and workmanship for a period of twelve (12) months from date of
      delivery to Novoste or delivery to a third Party as directed by Novoste.
      QSA will not be responsible for any other defects or damage under such
      warranty including but not limited to that caused by the neglect, misuse,
      abuse or alteration by Novoste or a third Party.

      QSA's obligation under such warranty shall be limited solely to an
      obligation to repair or replace all defective Source Trains and to pay or
      reimburse associated costs or expenses reasonably incurred as a result of
      such replacement, including shipping costs but not consequential losses
      suffered due to delay related thereto, and to return replaced defective
      sources to QSA. QSA shall be responsible for properly disposing of, or
      recycle if permitted, replaced defective Source Trains all in accordance
      with applicable laws and regulations.

      The foregoing warranties shall be in lieu of and shall exclude all other
      warranties (as conditions) expressed or implied, statutory or otherwise,
      including any implied warranties (as conditions) of merchantability or
      fitness for particular purpose.

      At the end of each trains' useful life, Novoste will return the Source
      Trains to QSA within one year after the end of the useful life for
      decommissioning and storage. Such disposal and storage costs are included
      in the initial purchase price of the Source Trains.


                                       17
<PAGE>

               ARTICLE 15 - QSA'S INTELLECTUAL PROPERTY INDEMNITY

15.1  Indemnification of Novoste

      QSA hereby agrees to indemnify, defend and hold Novoste, its Affiliates
      and all of the officers, directors, employees and agents of Novoste and
      its Affiliates harmless from any and all damages arising out of or related
      to (a) the breach or falsity of any representation of QSA contained
      herein, (b) the negligent or willful misconduct of QSA or its officers,
      directors, employees or agents, or (c) any breach by QSA of its
      obligations hereunder, including without limitation its obligation to
      comply with standard operating procedures.

      QSA agrees to defend, indemnify and hold Novoste, its officers, directors
      and employees harmless from and against any liabilities, claims, damages
      and expenses (including reasonable attorneys' fees) which Novoste and such
      indemnified Parties may be compelled to pay in any judgment, claim or
      action arising from infringement of third Party copyright, patents,
      technology or other intellectual property rights resulting from QSA's use
      under this Agreement of Background Technology. Novoste shall give written
      notice of any legal action promptly after Novoste's first knowledge
      thereof. QSA shall have sole and exclusive control of the defense of any
      legal action, including the choice and direction of any legal counsel.
      Novoste may not settle nor compromise any such legal action without the
      written consent of QSA. This indemnity shall survive termination of this
      Agreement.

      In the event that any portion of the Background Technology developed is,
      QSA's reasonable opinion, likely to or does become the subject of a claim
      for a patent, copyright or other industrial or intellectual property
      rights infringement, QSA reserves the right and may at its option:

      (i)   procure the right to continue using the technology; or

      (iii) modify the technology to become non-infringing.

15.2  Arising Intellectual Property Indemnity

      In the event that any portion of the technology developed under this
      Agreement is, in either Parties reasonable opinion, likely to or does
      become the subject of a claim for a patent, copyright or other industrial
      or intellectual property rights infringement, either Party reserves the
      right and may at its option:

      (i)   procure the right to continue using the technology; or

      (ii)  modify the technology to become non-infringing.


                                       18
<PAGE>

                  ARTICLE 16 - LICENSES, PATENTS AND TECHNOLOGY

16.1  Ownership of Work Performed

      (i)   Since all development work has been funded by Novoste, and QSA has
            brought significant Background Technology, QSA and Novoste agree and
            acknowledge, that any and all arising ideas, improvements,
            inventions and works of authorship conceived, written, created or
            first reduced to practice in the performance of this Agreement,
            shall be jointly owned and be the equal property of both Novoste and
            QSA. QSA on behalf of its stockholders, directors, employees,
            officers, Affiliates and representatives hereby assigns to Novoste
            an equal right, title and interest in and to any and all such
            arising ideas, improvements, inventions and works of authorship.
            Jointly Owned Arising IP includes technology related to the XXXXX
            containing 90SrF2 created for the manufacture of Sources.

      (ii)  Notwithstanding the foregoing sub-clause (i), but subject to
            sub-clause (iii) hereof, Jointly Owned Arising IP shall not include
            any of the Background Technology or Novoste Technology. Further it
            shall not include any modifications or improvements to Background
            Technology that are conceived, written, created or first reduced to
            practice by QSA during the term of this Agreement but unrelated to
            the performance of this Agreement by QSA.

      (iii) All data, information, or technology supplied to QSA by Novoste to
            assist QSA in carrying out its obligations hereunder, shall remain
            the property of Novoste and shall be returned by QSA to Novoste upon
            expiration or termination of this Agreement.

      (iv)  QSA agrees that it will manufacture Source Trains exclusively for
            Novoste. This Article will remain in effect and survive the
            termination of this Agreement for an additional three years, unless
            otherwise agreed in writing by Novoste,

      (v)   Subject to sub-clause (viii) hereto, QSA and Novoste agree that the
            Jointly Owned Arising IP shall not be sold, licensed, assigned or
            otherwise provided to any third party without the prior written
            agreement of the other Party, provided that Novoste shall not
            unreasonably withhold agreement for QSA to license a third party if
            required for the purpose of exploiting any non-medical application
            of the Jointly Owned Arising IP. Further, in the event that there
            are medical applications for the Jointly Owned Arising IP which are
            outside the scope of this Agreement the Parties shall consult and
            seek to reach agreement by which such medical

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Confidential treatment has been requested for portions of this page of this
exhibit. The copy filed herewith omits the information subject to the
confidentiality request. Omissions are designated as "XXXXX". The portions
omitted have been filed separately with the Securities and Exchange Commission
pursuant to such request for confidential treatment.


                                       19
<PAGE>

             applications can be jointly exploited, if possible by extending the
             scope of this Agreement thereto.

      (vi)   Following agreement by the two Parties as to the countries in which
             any patents will be filed, QSA and Novoste agree to jointly and
             equally fund the filing, prosecution and maintenance of patent
             applications and any other registration actions and any litigation
             relating to Jointly Owned Arising IP. In the event of legal
             proceedings relating to Jointly Owned Arising IP become necessary
             to defend the Jointly Owned Arising IP, both Parties shall be in
             agreement to take part in such proceedings, and neither Party shall
             unreasonably refuse to participate in such proceedings.

      (vii)  QSA and Novoste agree that all potential incremental improvements
             to the Jointly Owned Arising IP will be discussed in advance.
             Should either Party not be interested in pursing additional medical
             or industrial applications, and thus not fund such new development
             areas, then the technology related to these new application areas
             will be owned exclusively by the Party funding such development.
             Under these circumstances the licensing of any Intellectual
             Property owned by the other Party necessary for the use of such
             developments shall be agreed at a reasonable market rate. Should
             QSA require the use of the Equipment or Hot Cells to undertake such
             development outside the medical area, then they agree to advance a
             payment to Novoste of a reasonable fee for the use of the facility.
             It is understood that Novoste's seed train production will always
             have priority.

      (viii) In the event this Agreement expires or is terminated by Novoste
             under Article 21.1 or by QSA for any reason except under Article
             21.1, QSA grants to Novoste a non-exclusive, non-transferable,
             royalty free license to use and develop Background Technology
             related to the manufacture of Source Trains. In the event Novoste
             terminates this Agreement for any other reason, QSA agrees to grant
             Novoste a license to the Background Technology at reasonable,
             commercial terms to be agreed by the two Parties. Neither Party
             shall transfer in any way rights to the Jointly Owned Arising IP to
             a third party without first notifying the other Party and providing
             them with the opportunity to match the terms of any such transfer.
             Should the other Party decline to exercise such an option to
             purchase or acquire use of the notifying Party's Jointly Owned
             Arising IP then the notifying Party shall be relieved of all
             obligations under this sub-clause.

16.2  Patent Applications

      QSA shall prepare all papers, including patent applications, invention
      assignments and copyright assignments, to perfect the rights, title and
      other interests in the Jointly Owned Arising IP, and QSA, wherever
      permitted under the law, shall file and execute such papers jointly in its
      own name and in the name of Novoste. Reasonable costs related to such
      preparation and filing shall be shared equally.


                                       20
<PAGE>

      This Article 16 shall survive the termination of this Agreement for any
      reason including expiration of the term.

                         ARTICLE 17 - REGULATORY MATTERS

17.1  Novoste Responsibilities

      It shall be the responsibility of Novoste or its designee to file, obtain
      and maintain such licenses, registrations, listings, authorizations and
      approvals as the European Authority or United States Authority or any
      other applicable governmental entity may require to enable use of the
      Source Train in association with the Medical Device. QSA shall provide to
      Novoste as requested or, at QSA's discretion directly to the regulatory
      authority (in order to protect the proprietary nature of the information),
      all required information in its possession necessary to assist Novoste in
      filing, obtaining and maintaining all licenses, registrations, listings,
      authorizations and approvals of any governmental entities necessary for
      the use of Source Trains in conjunction with the Medical Device and in
      order to seek marketing authorization for the Medical Device.

17.2  QSA Responsibilities

      QSA shall be responsible for obtaining and maintaining all necessary
      facility licenses, registrations, authorizations and approvals, other than
      those required to market the Medical Device or use it in clinical trials,
      which are necessary to develop, manufacture, handle, store, label,
      package, dispose of, transport and ship Source Trains and radioactive
      materials in the U.S., Germany, and other jurisdictions specified by
      Novoste.

17.3  Governmental Inspections, Compliance Review and Inquiries

      Upon request of any governmental entity or any third Party entity
      authorized by a governmental entity, such entity shall, for the purpose of
      regulatory review, have access to observe and inspect the Facility and
      procedures used for the manufacturing, testing, storage and shipping of
      Sources, including Process development operations, and to audit such
      Facilities for compliance with applicable regulatory standards, and to
      perform such other activity as such entity may be authorized to undertake.
      QSA shall give Novoste prompt notice of any upcoming inspections or audits
      by a government entity of the Facility or procedures and shall provide
      Novoste with a written summary of such inspection or audit following
      completion thereof. QSA agrees to use commercially reasonable efforts to
      promptly rectify or resolve any deficiencies noted by a government entity
      whether communicated orally, in a report or correspondence or otherwise
      issued to QSA.

17.4  Access to the Facility

      Novoste shall have reasonable access to the Facility and procedures:


                                       21
<PAGE>

      (i)   at least once per calendar quarter and more frequently for good
            cause, for the purpose of observing the Process development relating
            to the Sources, and

      (ii)  no more frequently than semiannually (except for good cause) for the
            purpose of auditing the Facility for compliance to applicable
            regulatory requirements and standards relating to the Sources and
            timely performance by QSA of its obligations hereunder.

      After commencement of the Commercial Phase, Novoste shall, as mutually
      agreed and no less frequently than semiannually (except for good cause),
      be entitled to access to the Facility for the purpose of observing any
      Process development or to audit the Facility for compliance with
      specifications and other regulatory requirements. QSA shall provide access
      to Novoste, on a continuing basis, to all QSA protocols, standard
      operating procedures and manufacturing records, as is necessary or
      relevant for the development, manufacture, handling, storage, labeling,
      packaging, disposing, transportation and shipment of Source Trains, which
      may be required in obtaining or maintaining licenses, registrations,
      authorizations and regulatory authorization of the Medical Device. All
      such information disclosed to Novoste or its employees or agents, shall be
      deemed to be Novoste's Confidential Information as such term is defined in
      this Agreement.

17.5  Approval for Manufacturing Changes

      QSA agrees that no changes will be made to any materials, Specifications,
      Equipment, Hot Cell(s) or methods of production or testing the Sources,
      without Novoste's prior written approval. Subsequent to such approval by
      Novoste, QSA may then make such approved changes in manufacturing
      procedures, so long as in any event:

      (i)   such changes are permitted by applicable government regulations and
            the terms of any licenses, registrations, authorizations or
            approvals previously granted by the applicable governmental entity
            with respect to the Medical Device, and

      (ii)  Novoste receives copies of all documentation relating to such
            approved changes.

      If the changes require the additional license, registration, authorization
      or approval of any applicable governmental entity in Europe, United States
      or elsewhere, such changes may not be implemented until QSA receives
      written notice that the governmental entity or entities has or have
      authorized or approved the change. Each Party shall cooperate fully with
      the other in preparing data and information for a submission requesting
      prior authorization or approval of a change in materials, specifications,
      equipment or methods of production or testing. However, where changes are
      required to be made at the request of a regulatory body, Novoste shall not
      withhold their agreement to such changes.


                                       22
<PAGE>

17.6  New Regulatory Requirements

      Each Party shall promptly notify the other of new regulatory requirements
      of which it becomes aware which are relevant to the manufacture of Sources
      under this Agreement and which are required by the European Authority,
      United States Authority or other applicable governmental entities and the
      Parties shall confer with each other with respect to the best means to
      comply with such requirements. QSA shall be responsible for implementing
      and complying with any new or revised regulatory requirements arising
      after the Effective Date relating to QSA's performance of this Agreement.

                         ARTICLE 18 - GENERAL INDEMNITY

18.1  Hold Harmless

      QSA and Novoste, as the case may be, shall indemnify and hold harmless the
      other from and against any and all costs, claims, judgements or other
      expenses, including reasonable attorney fees, arising as a result of
      damages claimed by third parties, in tort, contract or other legal theory,
      or arising as a result of its violation of any applicable law or
      regulation, in each case occasioned by QSA's or Novoste's negligence or
      willfulness or that of their respective employees or agents, in carrying
      out their obligations hereunder.

18.2  Indemnification Procedures

      A Party (the "Indemnitee") which intends to claim indemnification under
      this Agreement shall promptly notify the other Party (the "Indemnitor") in
      writing of any action, claim or other matter in respect of which the
      Indemnitee, or any of their respective directors, officers, employees or
      agents intend to claim such indemnification; provided, however, the
      failure to provide such notice within a reasonable period of time shall
      not relieve the Indemnitor of any of its obligations hereunder except to
      the extent the Indemnitor is prejudiced by such failure. The Indemnitor
      shall have sole and exclusive control of the defense of any legal action,
      including the choice and direction of any legal counsel. The Indemnittee
      may not settle nor compromise any legal action without the written consent
      of the Indemnitor The Indemnitee, and its respective directors, officers,
      employees and agents shall cooperate fully with the Indemnitor and its
      legal representatives in the investigation and defense of any action,
      claim or other matter covered by this indemnification. The Indemnitee
      shall have the right, but not the obligation, to be represented by counsel
      of its own selection and at its own expense.

18.3  Survival of Article

      This Article 18 shall survive the termination of this Agreement for any
      reason including expiration of the term.


                                       23
<PAGE>

                      ARTICLE 19 - DISCLOSURE OF TECHNOLOGY

19.1  Disclosure

      Except as otherwise set out, it is agreed that disclosure of data,
      information or technology by QSA or Novoste, to the other, during the term
      of this Agreement shall not, except to the extent granted herein,
      constitute any grant, option or license under any patent, technology or
      other rights, held by QSA or Novoste.

                          ARTICLE 20 - CONFIDENTIALITY

20.1  Confidentiality and Exceptions

      During the term of this Agreement and for a period of ten (10) years
      thereafter, each Party hereto shall maintain in confidence all technology
      including Background Technology, Novoste Technology, Jointly Owned Arising
      IP and know-how, data, processes, methods, techniques, formulas, test data
      and other information disclosed to such Party by the other Party whether
      or not it is identified as "Confidential Information" by the disclosing
      Party (collectively "Confidential Information"). This obligation of
      confidentiality shall not apply to the extent that it can be established
      by the Party in receipt of such Confidential Information, that the
      information:

      i)    was already known to the receiving Party at the time of disclosure;

      ii)   was generally available to the public or otherwise part of the
            public domain at the time of its disclosure;

      iii)  became generally available to the public or otherwise part of the
            public domain after its disclosure to the receiving Party through no
            act or omission of the receiving Party;

      iv)   was disclosed to the receiving Party by a third Party who had no
            obligation to restrict disclosure of such information; or

      v)    was independently developed by the receiving Party without any use
            of Confidential Information of the disclosing Party.

      Notwithstanding the foregoing, QSA and Novoste may both disclose
      Confidential Information to an Affiliate provided that the Affiliate is
      bound by confidentiality to the same extent as QSA and Novoste hereunder.
      The Party disclosing Confidential Information to such Affiliate shall be
      liable for any unauthorized use or disclosure of the Confidential
      Information by the Affiliate.

      This Article shall survive termination or expiration of this Agreement in
      accordance with its terms.


                                       24
<PAGE>

                            ARTICLE 21 - TERMINATION

21.1  Termination for Breach

      This Agreement may be terminated by either Party in the event of a
      material breach by the other Party of the terms and conditions hereof;
      provided, however, the other Party shall first give to the breaching Party
      written notice of the proposed termination of this Agreement (a "Breach
      Notice"), specifying the grounds thereof. Upon receipt of such Breach
      Notice, the breaching Party shall have ninety (90) days to respond by
      curing such breach. If the breaching Party does not cure such breach
      within such cure period, the other Party may terminate the Agreement
      without prejudice to any other rights or remedies which may be available
      to the non-breaching Party.

21.2  Remedies Upon Termination by QSA Pursuant to Articles 21.1 or 21.3

      If QSA terminates this Agreement, under Articles, 21.1 or 21.3, QSA, in
      addition to any claim for damages it may have, shall be entitled to:

      (i)   retain all amounts paid by Novoste to QSA prior to such termination;

      (ii)  except for the Hot Cell(s), return to Novoste all the Equipment
            which is owned by Novoste and in QSA's possession and for which
            Novoste has paid all amounts due to QSA pursuant to this Agreement,
            unless Novoste requests that QSA decommission the Equipment by using
            the funds in the Escrow Account;

      (iii) terminate all activities under this Agreement expeditiously so as to
            minimize costs incurred by Novoste therefor;

      (iv)  deliver all completed and undelivered Sources to Novoste, or destroy
            such Sources, as Novoste may elect.

      (v)   immediately upon such termination, except as provided elsewhere in
            this agreement, terminate all licenses granted by QSA to Novoste
            under this Agreement which rights shall revert back to QSA; and

      (vi)  where applicable receive from Novoste written confirmation that the
            foregoing steps have been taken and that it has ceased using all
            patents data, information, technology, trade secrets and other
            intellectual property owned by QSA pursuant to this Agreement.

      Novoste shall further reimburse QSA for all reimbursable costs incurred
      and sums owing but not invoiced prior to the effective date of any such
      termination by QSA under this Agreement. In addition, Novoste will if QSA
      so opts, either promptly transfer title of the Hot Cell(s) to QSA or allow
      the execution of the Decontamination and Decommissioning work by using the
      funds in the Escrow Account, whereupon Novoste shall have no further
      obligations under Article 6.1.


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<PAGE>

21.3  Bankruptcy

      Notwithstanding anything contained in this Agreement to the contrary, this
      Agreement may be terminated by either Party in the event the other Party
      files a petition in bankruptcy, is adjudicated a bankrupt, or files a
      petition or otherwise seeks relief under or pursuant to any bankruptcy,
      insolvency or reorganization statute or proceeding, or if a petition in
      bankruptcy is filed against it which is not dismissed within sixty (60)
      days or proceedings are taken to liquidate the assets of such Party which
      are not stayed within sixty (60) days. Any assets jointly owned by the two
      Parties including the Jointly Owned Arising IP shall become the property
      of the Party not seeking such relief.

21.4  Remedies Upon Termination by Novoste Pursuant to Article 21.1 or Article
      21.3

      If Novoste terminates this Agreement under Article 21.1 or under Article
      21.3, or under any other provision hereof, Novoste, in addition to any
      claim for damages it may have, shall be entitled to:

      (i)   within thirty (30) days of such termination at QSA's expense if
            termination is caused by a breach of QSA's or at Novoste's if
            termination is for any other reason, receive the Equipment and all
            related materials, in its then current condition (subject to
            decontamination);

      (ii)  exercise the option whether the Hot Cell(s) shall be returned to
            Novoste by QSA or whether they shall be decontaminated and
            decommissioned by QSA by using the funds in the Escrow Account;

      (iii) receive all completed Sources which have been ordered but not
            delivered;

      (iv)  immediately upon such termination, terminate all licenses granted by
            Novoste to QSA under this Agreement which rights shall revert back
            to Novoste and QSA shall then destroy all Sources Novoste elects not
            to acquire; and

      (v)   receive from QSA written confirmation that the foregoing steps have
            been taken and that it has ceased using all patents data,
            information, technology, trade secrets and other intellectual
            property owned by Novoste pursuant to this Agreement.

21.5  Consequences of Termination or Expiration

      Notwithstanding expiration or termination of this Agreement, the
      obligations of the Parties under Articles 21 shall survive termination of
      this Agreement.

                              ARTICLE 22 - NOTICES

22.1  Within thirty (30) days after execution of this Agreement, the Parties
      shall each designate a Project Manager, who shall be responsible for
      coordinating communication and monitoring performance under this
      Agreement. All


                                       26
<PAGE>

      references in this Agreement to changes to the Schedules shall be
      automatically approved if agreed in writing by both Parties Project
      Managers.

22.2  Any notice to be sent to a Party hereunder except with regard to changes
      to the Schedules hereto shall be forwarded to:

            QSA at:        QSA Division of AEA Technology PLC
                           Building 329
                           Harwell, Didcot
                           Oxfordshire, OX11 ORA
                           United Kingdom

            Attention:     Mr. Hugh Evans

            with copy to:  Ms. Katherine Boyce

            Novoste at:    Novoste Corporation
                           3890 Steve Reynolds Blvd.
                           Norcross, GA 30093

            Attention:     David N. Gill

      Any notice required or authorized to be given by a Party to the other in
      accordance with the provisions of this Agreement shall, unless otherwise
      specifically stipulated, be in writing and delivered personally, overnight
      courier or electronic facsimile confirmed by registered mail.

                ARTICLE 23 - DISCLAIMER OF CONSEQUENTIAL DAMAGES

23.1  Disclaimer

      In no event shall either Party be liable to the other for indirect,
      contingent, incidental, special or consequential damages, including, but
      not limited to, any claim for damages based on lost profits, cost of
      capital, loss of business opportunity or loss of time.

                             ARTICLE 24 - ASSIGNMENT

24.1  No Assignment

      This Agreement shall endure to the benefit of and shall be binding upon
      the heirs, executors, administrators, successors and permitted assigns of
      the Parties. Neither QSA nor Novoste shall assign any portion of this
      Agreement without the written approval of the other Party, which approval
      shall not be unreasonably withheld.


                                       27
<PAGE>

      However, either Party has the right to assign this agreement to an
      Affiliate, but in such case shall remain liable to the other Party for the
      performance of its Affiliate and shall indemnify the other Party and hold
      it harmless from and against all costs, claims, judgements and other
      expenses arising from the Affiliate's performance or failure of
      performance.

      QSA shall be entitled to subcontract to third parties any of its
      obligations set out in this Agreement in order to carry out its
      obligations hereunder; provided, however, that QSA may not subcontract any
      obligation in this Agreement unless such subcontractor shall agree to be
      bound by all of the relevant provisions hereof. QSA shall remain
      responsible for the performance of its subcontractors and shall indemnify
      Novoste and hold it harmless from and against any and all costs, claims,
      judgments or other expenses arising from any subcontractor's performance
      or failure of performance.

                             ARTICLE 25 - COMPLIANCE

25.1  Compliance with Laws

      This Agreement shall be carried out in compliance with all relevant laws,
      bylaws, rules, regulations and orders of government or manifestations
      thereof of Germany, the European Union and the United States.

                             ARTICLE 26 - NON-WAIVER

26.1  Non-Waiver of Rights

      Failure by either Party to enforce at any time any of the provisions of
      this Agreement shall not be construed as a waiver of its rights hereunder.
      Any waiver of a breach of any provision hereof shall not affect either
      Party's rights in the event of any additional breach.

                           ARTICLE 27 - FORCE MAJEURE

27.1  Force Majeure

      Neither Party shall be liable to the other for loss or damage by virtue of
      the occurrence of an event of Force Majeure. In the event of Force
      Majeure, the Party affected shall promptly notify the other and shall
      exert commercially reasonable efforts to eliminate, cure or overcome such
      event and to resume performance of its obligations. If QSA is the Party
      affected by the Force Majeure event, QSA agrees that it will resume
      production of Source Trains as soon as practicable thereafter. For such
      time as QSA is affected by an event of Force Majeure, Novoste is relieved
      from its purchase obligations under this Agreement which purchase
      commitments shall be adjusted accordingly on a pro rated annual basis.
      "Force Majeure" shall mean an occurrence which prevents, delays or
      interferes with the performance by a Party of any of its obligations
      hereunder, if


                                       28
<PAGE>

      such event occurs by reason of any act of God, flood, fire, explosion,
      casualty or accident, or war, revolution, civil commotion, acts of public
      enemies, blockage or embargo, or any law, order or proclamation of any
      government not existing on the Effective Date, failure of unaffiliated
      suppliers to provide materials, equipment or machinery, interruption of or
      delay in transportation, strike or labor disruption, or other cause,
      whether similar or dissimilar to those above enumerated, beyond the
      commercially reasonable control of such Party.

                              ARTICLE 28 INSURANCE

28.1  Novoste Insurance

      During the Term of this Agreement and for a period of four years after the
      expiration or other termination hereof, Novoste shall maintain in force
      and effect product liability insurance issued by a reputable insurance
      company with a rating reasonably satisfactory to QSA. Such insurance shall
      (a) insure against Damages resulting from or caused by (or claimed to be
      resulting from or caused by) the operation or use of any Medical Devices
      marketed or distributed by Novoste, and (b) shall have coverage limits of
      not less than U.S. $8,000,000 per occurrence and U.S. $8,000,000 in the
      aggregate. Within 15 days after the execution of this Agreement, Novoste
      will deliver to QSA copies of all policies effecting such insurance (in
      English) with a certificate (in English) of Novoste's insurance broker
      stating that all premiums then due have been paid.

28.2  QSA Insurance

      QSA agrees, at QSA's expense, to maintain general liability, business
      interruption (for at least $2 million) and property and casualty insurance
      covering loss or damage to:

      (i)   the Facility;

      (ii)  any asset owned by Novoste in the possession of QSA under this
            Agreement, including the Hot Cell(s) and Equipment; and

      (iii) QSA's facility located at Braunschweig, Germany, as the case may be.

      Such insurance policy shall designate Novoste as loss payee in the event
      of any loss or damage involving any asset owned by Novoste and shall name
      Novoste as an additional insured. QSA agrees that such insurance shall be
      replacement value insurance for all property owned by Novoste. QSA shall,
      upon request, provide to Novoste a certificate of insurance designating
      Novoste as loss payee in event of any loss or damage covered by sub-clause
      (ii) of this Article, provided that any proceeds so received as a result
      of less than a total loss shall be used to repair such damaged or
      destroyed assets, including, but not limited to, the Hot Cell(s) and the
      Equipment. Any insurance proceeds held by QSA pursuant to this Article
      shall be used to repair or replace such damaged Facility and QSA shall
      give Novoste thirty (30) days advance notice of any termination or
      cancellation of such


                                       29
<PAGE>

      coverage. This Article shall survive termination of this Agreement with
      respect to sub-clause (ii) of the first sentence of this Article.

      In addition, during the Term of this Agreement and for a period of four
      years after the expiration or other termination hereof, QSA shall maintain
      in force and effect product liability insurance issued by a reputable
      insurance company with a rating reasonably satisfactory to Novoste. Such
      insurance shall (a) include coverage insuring against Damages resulting
      from or caused by (or claimed to be resulting from or caused by) the
      operation or use of any Source shipped or repaired by QSA (b) shall have
      coverage limits of not less than U.S. $8,000,000 per occurrence and U.S.
      $8,000,000 in the aggregate, and shall name Novoste as an additional
      insured. Within 15 days after the execution of this Agreement, QSA will
      deliver to Novoste copies of all policies effecting such insurance (in
      English) with a certificate (in English) of QSA's insurance broker stating
      that all premiums then due have been paid.

                             ARTICLE 29 SEVERABILITY

29.1  Invalid Provisions

      If any provision or term of this Agreement is found unenforceable under
      any of the laws or regulations applicable thereto, all other conditions
      and provisions of this Agreement shall nevertheless remain in full force
      and effect so long as the economic or legal substance of the Agreement or
      transactions contemplated herein are not affected in any manner materially
      adverse to any Party. Upon such determination that any term or other
      provision is invalid, illegal or incapable of being enforced, the Parties
      hereto shall negotiate in good faith to modify this Agreement to effect
      the original intent of the Parties as closely as possible in a mutually
      acceptable manner, in order that the transaction contemplated hereby be
      consummated as originally contemplated to the greatest extent possible.

                               ARTICLE 30 GENERAL

30.1  Entire Agreement

      This Agreement, including the Schedules hereto which are incorporated
      herein, constitute the entire agreement of the Parties with respect to the
      subject matter hereof and supersedes all proposals, oral or written, and
      all negotiations, conversations, or discussions. This Agreement may not be
      modified, amended, rescinded, canceled or waived, in whole or in part,
      except by written amendment signed by both Parties hereto.

30.2  Publicity

      The Parties agree that, except as may otherwise be required by applicable
      laws, regulations, rules or orders, no information concerning this
      Agreement and the transactions contemplated herein shall be made public by
      either Party without the prior written consent of the other, which consent
      shall not be unreasonably


                                       30
<PAGE>

      withheld. In the event either Party decides to issue a press release
      announcing the execution of this Agreement, it shall not do so without the
      prior written approval of the other Party.

      A copy of any proposed press release shall be provided to the other Party
      at least three (3) business days prior to any proposed dissemination. The
      Parties agree that they will use reasonable efforts to coordinate the
      initial announcement or press release relating to the existence of this
      Agreement.

30.3  Export Control

      The Parties understand that materials and information resulting from the
      performance of this Agreement may be subject to export control laws and
      that each Party is responsible for its own compliance with such laws.
      Novoste agrees that the cost of exporting Sources from Germany at its
      request shall be the responsibility of Novoste.

30.4  Dispute Resolution

      (i)   In the event that, at any time during the term of this Agreement, a
            disagreement, dispute, controversy or claim should arise relating to
            scientific or technical issues in connection with QSA's performance
            under this Agreement, the Parties will attempt in good faith to
            resolve their differences for sixty (60) days. If, after sixty (60)
            days, the Parties are unable to resolve such dispute, the Parties
            shall refer the matter to a third Party consultant with expertise in
            the scientific or technical area of dispute for sixty (60) days. In
            the event such consultant is unable to work out a resolution of the
            issue with the Parties, the Parties shall within 30 days submit the
            matter to binding arbitration in Frankfurt, Germany to be undertaken
            pursuant to the applicable rules of the London Court of
            International Arbitration.

      (ii)  In the event that, at any time during the term of this Agreement, a
            disagreement, dispute, controversy or claim should arise out of or
            relating to the interpretation of or performance under this
            Agreement, or the breach, or invalidity thereof other than a dispute
            relating to scientific or technical issues in connection with QSA's
            performance under this Agreement covered by Article 30.4 sub-clause
            (i) above, the Parties will attempt in good faith to resolve their
            differences by referring the matter to the Chief Executive Officers
            of the Parties (or their designees) for sixty (60) days, following
            which if the matter is not resolved it will be submitted to
            alternative dispute resolution in Frankfurt, Germany to be
            undertaken pursuant to the applicable rules of the London Court of
            International Arbitration.

      (iii) The dispute resolution tribunal shall be composed of three
            arbitrators. The language of the arbitration shall be English. Under
            the LCIA Rules which are deemed to be incorporated by reference into
            this Agreement, the arbitrators shall resolve any dispute arising
            out of or in connection with this Agreement, including any questions
            regarding its existence, validity or termination.


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<PAGE>

30.5  Essence

      Time is of the essence in this agreement.

                           ARTICLE 31 - APPLICABLE LAW

31.1  Applicable law

      This Agreement shall be governed and construed in accordance with the laws
      of Germany. The Convention on the International Sale of Goods of April 11,
      1980 (CISG) and the German Law transforming the CISG into national law
      shall not apply.

      IN WITNESS WHEREOF the Parties hereto have executed this Agreement as of
      the date first above written.


                           AEA TECHNOLOGY QSA GMBH

                                 By:________________________________
                                    Hermann Dornhofer
                                    Geschaftsfuhrer


                                 NOVOSTE CORPORATION

                                 By:_________________________________
                                    David N. Gill
                                    Chief Operating Officer


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<PAGE>

                                   Schedule A

                                Development Phase

XXXXX

--------------------------------------------------------------------------------
Confidential treatment has been requested for portions of this page of this
exhibit. The copy filed herewith omits the information subject to the
confidentiality request. Omissions are designated as "XXXXX". The portions
omitted have been filed separately with the Securities and Exchange Commission
pursuant to such request for confidential treatment.


                                       33
<PAGE>

                                   Schedule B

                              Facility Description

As per the following Gantt chart and detailed Project Cost Estimate.

It is recognized by both Parties that the chart details may change if any of the
other schedules change as a result of mutual agreement, confirmed in writing,
between the parties.

XXXXX

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Confidential treatment has been requested for portions of this page of this
exhibit. The copy filed herewith omits the information subject to the
confidentiality request. Omissions are designated as "XXXXX". The portions
omitted have been filed separately with the Securities and Exchange Commission
pursuant to such request for confidential treatment.


                                       34
<PAGE>

                                   Schedule C

                               PRODUCT DESCRIPTION

The BETA-CATH(TM) System was developed to reduce the incidence of coronary
artery restenosis following angioplasty through the delivery of a prescribed
dosage of beta radiation to the balloon injury site. It is an integrated system
comprised of three separate components: the Delivery Catheter, the Transfer
Device, and the Radiation Source Train. However, the System will most likely be
sold or leased as only two discrete units of sale: 1) the Delivery Catheter and
2) the Transfer Device containing the Radiation Source Train.

Delivery Catheter

The Delivery Catheter is an invasive device which provides access to the site of
balloon injury and the path through which the Radiation Source Train is
delivered to the angioplasty treatment site in the coronary artery. The current
catheter design is a triple lumen, 5Fr, single extrusion. The three lumens (the
Source Train lumen, the hydraulic return lumen and the guidewire lumen) allow
for the transfer of the guide-wire and Radiation Source Train, as well as
providing a closed hydraulic return loop. The catheter design consists of a
rapid-exchange design for the guide-wire lumen primarily for the European
market, known as the Beta-Rail(TM), and an over-the-wire design for the US
market, known as the Beta-Cath(TM).

Transfer Device

The ergonomically-designed Transfer Device houses the Radiation Source Train and
controls the hydraulics during the radiation treatment procedure. The handheld
Transfer Device holds the Radiation Source Train until the user depresses a
syringe attached to the Transfer Device; this action hydraulically delivers the
Radiation Source Train to the treatment zone within the Delivery Catheter. At
the end of the treatment, the switching mechanism in the Transfer Device allows
the hydraulic pressure to propel the Radiation Source Train back into the
Transfer Device. The Transfer Device has also been designed to protect
healthcare workers and patients from significant unintended radiation exposure.

Source Train

The Source Train consists of a series of independent cylindrical sources, with
an inactive gold marker at each end, providing the radiation dosage for the
treatment procedure. Each source is composed of radioactive materials (Sr90/Y90)
XXXXX. XXXXX. The Source Train will be contained within the Transfer Device when
it is sold commercially and will be offered in 30mm, 40 mm, 50 mm and 60mm
lengths.

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Confidential treatment has been requested for portions of this page of this
exhibit. The copy filed herewith omits the information subject to the
confidentiality request. Omissions are designated as "XXXXX". The portions
omitted have been filed separately with the Securities and Exchange Commission
pursuant to such request for confidential treatment.


                                       35
<PAGE>

Additional components that may be required to use the system are:

                    - sterile sheaths
                    - three-ring syringes
                    - fluid collection bags
                    - sterile saline
                    - stopwatch timer
                    - extension tubing
                    - stopcocks
                    - Luer extension connectors
                    - Response Kit
                    - Bailout Box
                    - Survey meter (generally exists in Radiation Oncology)


                                       36
<PAGE>

                                   Schedule D

                     Source and Source Train Specifications

XXXXX

--------------------------------------------------------------------------------
Confidential treatment has been requested for portions of this page of this
exhibit. The copy filed herewith omits the information subject to the
confidentiality request. Omissions are designated as "XXXXX". The portions
omitted have been filed separately with the Securities and Exchange Commission
pursuant to such request for confidential treatment.


                                       37
<PAGE>

                                   Schedule E

                                     Pricing

XXXXX

--------------------------------------------------------------------------------
Confidential treatment has been requested for portions of this page of this
exhibit. The copy filed herewith omits the information subject to the
confidentiality request. Omissions are designated as "XXXXX". The portions
omitted have been filed separately with the Securities and Exchange Commission
pursuant to such request for confidential treatment.


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