<PAGE>
[*] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES ACT OF 1933, AS
AMENDED.


                                                                  Exhibit 10.16

                                LICENSE AGREEMENT

      THIS AGREEMENT made December 15, 2000.

BETWEEN:

                            THE BOARD OF GOVERNORS OF
                       THE UNIVERSITY OF WESTERN ONTARIO,
                               (the "University")

AND:

                                 BIOSTREAM, INC.
    a corporation incorporated under the laws of the State of Massachusetts,
      and having a place of business at 160 Second Street, Cambridge, MA,
                                (the "Licensee")

WHEREAS:

A.    The University has been engaged in research in the course of which it has
      invented or developed a certain technology due to the efforts of the
      Inventors in the Department of Chemistry of the University;

B.    The Licensee wishes to obtain from the University and the University has
      agreed to grant a license to the Licensee to use or cause to be used such
      technology to manufacture, market, sell, distribute, lease and/or license
      or sublicense products derived or developed from such technology;

NOW THEREFORE in consideration of the premises and of the mutual covenants set
forth in this Agreement, the parties hereto agree as follows:

SECTION 1 - DEFINITIONS

1.01  In this Agreement, unless a contrary intention appears:

      (a)   "Affiliate" means any corporation, company, partnership, joint
            venture or other entity which controls, is controlled by, or is
            under common control with, a party to this Agreement; for purposes
            of this Section 1.01(a), control shall mean, in the case of
            corporate entities, the direct or indirect ownership of voting
            shares carrying more than 50% of the votes for the election of
            directors and sufficient votes to elect a majority of the board of
            directors;

      (b)   "Business Day" means every day other than Saturday, Sunday, and
            statutory holidays in the State of Massachusetts;

      (c)   "Confidential Information" means the Technology and the information
            provided to the University pursuant to Section 8.01;

<PAGE>

      (d)   "Date of Commencement" or "Commencement Date" means the date on
            which this Agreement shall come into force, which shall be the
            fifteenth day of December, 2000;

      (e)   "Field of Use" means all uses of the Technology;

      (f)   "Net Revenue" means the total of all amounts invoiced by Licensee
            and its authorized Affiliates and sublicensees and agents for sales
            of Products, which for the purposes of royalty payments shall be
            limited to those sold in such portions of the Territory to which
            Patent Rights apply, net of all separately invoiced and actually
            incurred charges relating to such sales, for: (a) credits,
            allowances, discounts and rebates to, and chargebacks from the
            account of, purchasers in respect of Products; (b) actual freight
            and insurance costs incurred in transporting Products to such
            purchasers; (c) reasonable and customary cash, quantity and trade
            discounts and other price reduction programs in respect of Products;
            (d) sales, use value-added and other direct taxes incurred in
            respect of Products; and (e) customs duties, surcharges and other
            governmental charges incurred in connection with the exportation or
            importation of Products. Product shall be deemed to have been sold
            and included in Net Revenue the earlier of delivery or payment.
            Where any Net Revenue is derived from a country other than Canada,
            it shall be converted to the equivalent in Canadian dollars on the
            date received by the Licensee or any such Affiliate at the rate of
            exchange set by the Bank of Montreal in Toronto for such date, of
            converting the currency of such revenue into Canadian dollars. The
            amount of Canadian dollars resulting from such conversion shall be
            included in the Net Revenue;

      (g)   "Licensee Improvement" means any addition to or modification of a
            component or a material useful in the Technology or the Patent
            Rights made by the Licensee or by any authorized Affiliate,
            sublicensee, or agent,

      (h)   "Licensee Processed Material" means any substance, product, or
            compound that is processed by the Licensee or by any of its
            authorized Affiliates, sublicensees, or agents and which utilizes
            the Technology,

      (i)   "Milestone Payments" has the meaning set forth in Section 5.02,

      (j)   "Materials" means any substance, product or compound (including all
            cell lines, vectors, plasmids, clones, micro organisms, anti-bodies,
            antigens, test plates, reagents, chemicals, compounds, physical
            samples, models and specimens) delivered by the University to the
            Licensee or to any authorized Affiliate, sublicensee, or agent,

      (k)   "Patent Rights" means pending US National Phase patent application
            No. 09/529,017, "Preparation of Radiolabelled Haloaromatics Via
            Polymer-Bound


<PAGE>

            Intermediates", the inventions described and claimed therein, and
            any divisions, continuations, continuations-in-part to the extent
            that their claims are dominated by existing Patents, and patents
            issuing thereon or reissues thereof; and any and all foreign patents
            and patent applications corresponding thereto.

      (l)   "Product(s)" means any goods, products or Licensee Processed
            Material covered by one or more claims of the University Patent
            Rights or University Improvement or of any Licensee Improvement,
            manufactured with or utilizing any Technology,

      (m)   "Related Person(s)" has the meaning assigned to it in section 251 of
            the Income Tax Act of Canada,

      (n)   "Royalty Due Dates" means the last Business Day of January, April,
            July, and October of each and every year during which this Agreement
            remains in full force and effect,

      (o)   "Technology" means the Patent Rights and any and all Materials,
            knowledge, know-how and/or techniques invented, developed and/or
            acquired, prior to or after the Date of Commencement, by the
            University or the Licensee, relating to Patent Rights and is useful
            or necessary to the development or production of Products,

      (p)   "Territory" means worldwide,

      (q)   "University Improvement" means any addition to or modification of a
            component or a material useful in the Technology or the Patent
            Rights made by the University,

      (r)   "University Trade-marks" means any mark, trade-mark, service mark,
            logo, insignia, seal, design or other symbol or device used by the
            University and associated with or referring to the University or any
            of its facilities.

SECTION 2 - PROPERTY RIGHTS IN AND TO THE TECHNOLOGY

2.01  OWNERSHIP. The parties acknowledge and agree that the University shall
      retain ownership of the Patent Rights and Materials and shall own all
      University Improvements made both before and after the Commencement Date.
      Licensee shall own all Licensee Improvements.

2.02  FURTHER ASSURANCES. The Licensee shall, at the request of the University,
      enter into such further agreements and execute any and all documents as
      may be required to confirm that ownership of the Technology resides with
      the University.

2.03  LICENSEE TO REPORT LICENSEE IMPROVEMENTS. From time to time and in any
      event no more than once every six months, the Licensee shall, at the
      request of the


<PAGE>
[*] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES ACT OF 1933, AS
AMENDED.



      University, deliver in writing the details of any and all Licensee
      Improvements, modifications and enhancements made by it relating to the
      Technology.

SECTION 3 - GRANT OF RIGHTS

3.01  LICENSE. Subject to the terms and conditions hereof, the University hereby
      grants to the Licensee and its authorized Affiliates a perpetual,
      royalty-bearing exclusive license to manufacture, use, market, sell and
      distribute Products within the Field of Use in the Territory and to
      commercially exploit the Technology within the Field of Use in the
      Territory. Notwithstanding any other provision hereof, the parties
      acknowledge and agree that the University shall have the right to use the
      Technology and Licensee Improvements without charge whatsoever for
      research, scholarly publication, teaching and other non-commercial uses.

3.02  SUBLICENSING. The Licensee may grant sublicenses of the Technology,
      subject to the terms and conditions of Section 3.03.

3.03  SUBLICENSES. Licensee shall provide a true and complete copy of any
      sublicense agreement or any amendment or termination thereof within thirty
      (30) days of entering into any such sublicense agreement, or any amendment
      or termination thereof. All sublicense agreements executed by Licensee
      pursuant to this Section 3.03 shall be consistent with the terms of this
      Agreement including but not limited to Diligence, Milestones, Reports,
      Insurance, Termination and Indemnity. Licensee agrees to forward to
      Licensor on an annual basis a copy of any report received by Licensee from
      its sublicensee(s) which is pertinent to an accounting for the payment of
      Milestone Payments (as defined in Section 5.02), royalties or other
      sublicense income under such sublicense agreements. Licensee is
      responsible for the performance of the sublicensee(s) relevant to this
      Agreement. In no event will a Licensee sublicensee be permitted to further
      sublicense or to assign or transfer any rights which have been granted to
      it by Licensee. Upon termination of this Agreement, any and all existing
      sublicenses granted by Licensee shall be assigned to the University.

SECTION 4 - TERM

4.01  TERM. This Agreement shall terminate on the expiration of the last patent
      obtained pursuant to Section 7 herein, unless earlier terminated pursuant
      to Section 13 herein.

SECTION 5 - INITIAL LICENSE FEE, MILESTONE PAYMENTS AND ROYALTIES

5.01  INITIAL LICENSE FEE. The Licensee agrees to pay to the University, as an
      initial license fee, the sum of $[******] (Canadian funds). The said sum
      shall be paid concurrently with the execution of this Agreement. The said
      sum shall not be refundable to the Licensee under any circumstances, in
      whole or in part.

<PAGE>
[*] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES ACT OF 1933, AS
AMENDED.



5.02  MILESTONE PAYMENTS. Licensee shall pay the University milestone product
      development payments with respect to the development of Product as set
      forth in the table below, each payment becoming due and payable on the
      first date of completion of such milestone regardless of the country in
      which such milestone is completed. Regardless of the number of Products
      successfully completing a milestone, payment will be made only upon the
      first such successful completion by any Product.

<TABLE>
<CAPTION>
Milestone                                    Payment
--------------------------------------       ----------------
<S>                                          <C>
Initiation of Phase I Clinical Trail         Canadian $[******]
Completion of Phase II Clinical Trial        Canadian $[******]
Completion of Phase III Clinical Trial       Canadian $[******]
Grant of Regulatory Approval                 Canadian $[******]
</TABLE>

5.03  ROYALTIES.

      In consideration of the license granted hereunder, the Licensee shall pay
      to the University:

      (a)   a royalty of [**************] percent ([***]%) of Net Revenue. For
            greater clarification, on sales between the Licensee, and/or its
            Affiliates, sublicensees or agents for resale purposes, the royalty
            shall be paid only on the resale value; and

      (b)   In the case of sublicenses or other arrangements with third parties
            with whom the Licensee is undertaking any efforts to further develop
            or commercialize the Technology and/or Product(s) jointly or in
            association with such third party, the Licensee shall also pay to
            University [****] percent ([*]%) of any income or other
            consideration received (e.g. license issue fees, milestone payments,
            etc. but excluding reimbursement by sublicensee or the third party
            of Licensee's out-of-pocket expenses for research and development).
            The non-royalty payment provided for in this Section 5.03(b) will
            not apply to the first Product to which the Milestone Payments under
            Section 5.02 are applicable; and

      (c)   In the case of any other sublicenses to third parties, Licensee
            shall also pay to University a percentage of any income or other
            consideration received (e.g. license issue fees, milestone payments,
            etc.) according to the following sliding scale:

                  (i) if sublicensed within one year after commencement of this
                  Agreement, [*****] percent ([**]%),

                  (ii) if sublicensed within year two or three after
                  commencement of this Agreement, [******] percent ([**]%),

                  (iii) if sublicensed within year four or five after
                  commencement of this Agreement, [***] percent ([**]%),

                  (iv) if sublicensed within year six after commencement of this
                  Agreement or any time thereafter, [*****] percent ([*]%).

5.04  ROYALTY PAYMENT DATES. The royalty shall become due and payable on each
      Royalty Due Date and shall be calculated with respect to the Net Revenue
      of the

<PAGE>
[*] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES ACT OF 1933, AS
AMENDED.



      Licensee in the three month period immediately preceding the month in
      which the applicable Royalty Due Date falls.

5.05  CURRENCY OF PAYMENTS. All payments made by the Licensee to the University
      hereunder shall be made in Canadian dollars without any reduction or
      deduction of any nature or kind whatsoever, except as may be prescribed by
      Canadian law.

5.06  MINIMAL ANNUAL ROYALTY. The Licensee shall pay a minimum annual royalty to
      the University of the sum of [************] dollars (Cdn$[******]) which
      is payable at the end of each calendar year in which Licensee does not
      sponsor research in the area of radiolabelling technology, at University
      at a level of at least [**************] dollars (Cdn$[******]) in that
      calendar year. There shall be no requirement for a minimum, annual royalty
      in the year 2000. Minimum annual royalties payable under this Section 5.06
      shall be credited against the annual running royalty payable under Section
      5.03.

SECTION 6 - ASSIGNMENT

6.01  ASSIGNMENT BY THE LICENSEE. Except as provided for in Section 7 herein,
      the Licensee will not assign, transfer, mortgage, charge or otherwise
      dispose of any or all of the rights, duties or obligations granted to it
      under this Agreement without the prior written consent of the University.
      The University is prepared to allow an assignment of the License Agreement
      with prior written notification to the University. If this License
      Agreement is assigned independently of a sale of the Licensee, as a going
      concern, other than as an assignment to an Affiliate, then the University
      is entitled to the same percentage of proceeds or, consideration as per
      the sliding scale pursuant to Section 5.03. The assignee or the Affiliate
      as the case may be shall be responsible for performance of the terms of
      this License Agreement as though the original signatory thereto.

6.02  ASSIGNMENT BY THE UNIVERSITY. The University shall have the right to
      assign its rights, duties and obligations under this Agreement to a
      corporation or society of which it is the sole shareholder, in the case of
      a corporation with share capital, or of which it controls the membership,
      in the case of a corporation or society without share capital. In the
      event of such an assignment, the Licensee will release, remise and forever
      discharge the University from any and all obligations or covenants,
      provided however that such corporation executes a written agreement which
      provides that such corporation shall assume all such obligations or
      covenants from the University and that the Licensee shall retain all
      rights granted to the Licensee pursuant to this Agreement.

SECTION 7 - PATENTS

7.01  PATENT RIGHTS. Licensee hereby recognizes and acknowledges the validity of
      the Patent Rights licensed hereunder and agrees not to contest such
      validity either directly or indirectly by assisting other parties.

<PAGE>

7.02  PATENT PROSECUTION: PATENT COSTS. Licensee shall reimburse the University
      for invoiced patent costs incurred related to Patent Rights, in the total
      amount of Cdn$12,111 within thirty (30) days of receiving copies of
      invoices for such patent costs. From and after the date of this Agreement,
      the Licensee shall have primary responsibility for the filing, prosecution
      and maintenance of patents and/or patent applications worldwide for those
      inventions within the Patent Rights, at the Licensee's expense. The
      Licensee shall consult with the University as to the prosecution and
      maintenance of all such patent applications within the Patent Rights
      reasonably prior to any substantive deadline or action, and shall not
      substantially limit the scope of patent protection without the
      University's consent. The Licensee shall furnish the University with
      copies of all relevant documents upon filing the same with the patent
      office of any country.

7.03  COPIES OF PATENT RELATED MATERIALS. The University shall provide the
      Licensee with copies of the patent applications and the entire prosecution
      history thereof relating to the Patent Rights.

SECTION 8 - CONFIDENTIALITY AND PUBLICATION

8.01  DUTY OF CONFIDENTIALITY. The parties hereto acknowledge and agree that
      they will treat the Confidential Information as confidential and that they
      will use all reasonable efforts not to disclose or communicate or cause to
      be disclosed or communicated the Confidential Information to any person or
      corporation except as permitted under a sublicense. Such reasonable
      efforts will be no less than the efforts used by the receiving party to
      protect its own confidential information.

8.02  LICENSEE INTERNAL PROGRAM. Each of the parties covenants and agrees that
      it will initiate and maintain an appropriate internal program limiting the
      internal distribution of the Confidential Information to its officers,
      servants or agents and requiring appropriate non-disclosure agreements
      from any and all persons who may have access to the Confidential
      Information.

8.03  PUBLICATION. The University shall be permitted to present at symposia,
      national or regional professional meetings, and to publish in journals or
      other publications, accounts of its research relating to the Technology
      provided that the Licensee shall have been furnished copies of the
      disclosure proposed therefor at least 30 days in advance of the
      presentation or publication date. If the Licensee does not within 20 days
      after receipt of the proposed disclosure object to such presentation or
      publication on the grounds that it contains Confidential Information or
      confidential information with respect to Licensee Improvements or material
      that is patentable, the University may proceed with the presentation or
      publication. In the event that the Licensee objects to the presentation or
      publication on the grounds,

      (a)   that it contains Confidential Information or confidential
            information with respect to Licensee Improvements, the University
            shall co-operate in all reasonable

<PAGE>

            respects in making revisions to any proposed disclosures to remove
            all Confidential Information or confidential information with
            respect to Licensee Improvements to the satisfaction of the
            Licensee; or

      (b)   that it contains material that is patentable, the Licensee may
            request that the intended disclosure be delayed for an additional
            period not exceeding 90 days to permit such patenting to occur.
            After such period has elapsed, the University shall be free to
            present and/or publish said disclosures.

SECTION 9 - ACCOUNTING RECORDS

9.01  ACCOUNTING RECORDS. The Licensee shall maintain at its principal place of
      business, separate accounts and records of business done pursuant to this
      Agreement, such accounts and records to be in sufficient detail to enable
      proper payments to be made under this Agreement, and the Licensee shall
      require Affiliates, sublicensees, and agents to keep similar accounts.

9.02  REPORTS. The Licensee shall deliver to the University by no later than 30
      days after the Royalty Due Date, together with the royalty payable
      thereunder, a report (the "Accounting") setting out particulars of the
      sale, distribution, leasing or sublicensing of the Technology and/or
      Products as shall be pertinent to the payment of royalties, including the
      following:

      (a)   the number of Products sold by Licensee and its authorized
            Affiliates or permitted sublicensees or agents in each country
            during the applicable royalty period:

      (b)   the Gross Revenue for each Product or Technology charged by Licensee
            and its Affiliates or permitted sublicensees or agents during the
            applicable royalty period;

      (c)   a calculation of Net Revenue in each country, including a listing of
            applicable deductions;

      (d)   total royalty payable on Net Revenue in Canadian dollars, together
            with the exchange rates used for conversion which shall be the rate
            of exchange established by the Bank of Montreal in Toronto on the
            date payment is received by the Licensee; and

      (e)   withholding taxes, if any, required to be deducted as a payment by
            the University with respect to such royalty payment.

      Licensee shall also provide to the University periodic reports of all
      significant stages and milestones in the development, manufacture and
      sale, distribute, leasing or sublicensing of the Technology and/or
      Products, including but not limited to, the milestones described in
      Section 5.02, by no later than thirty (30) days following the

<PAGE>

      completion of such stage or milestone; such reports shall be in sufficient
      detail to enable the University to assess the status of all required
      regulatory approvals relating to the Products, and whether the Licensee is
      meeting its obligations under Section 10.01 hereof during the relationship
      between the parties.

9.03  GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP). The calculation of
      royalties shall be made in accordance with generally accepted accounting
      principles from time to time approved by the American Institute of
      Certified Public Accountants (or any successor institute) applicable as at
      the date on which any calculation is required to be made, and applied on a
      consistent basis.

9.04  RETENTION OF ACCOUNTS AND RECORDS. The Licensee shall retain the accounts
      and records referred to in Section 9.01 for at least three (3) years after
      the date upon which they were made and shall permit any duly authorized
      representative of the University to inspect such accounts and records
      during normal business hours of the Licensee at the University's expense
      provided University gives Licensee at least two days notice of its intent
      to conduct such an inspection. The Licensee shall furnish such reasonable
      evidence as such representative will deem necessary to verify the
      Accounting and will permit such representative to make copies of or
      extracts form such accounts, records and agreements at the University's
      expense.

9.05  SURVIVAL OF THIS SECTION AFTER TERMINATION. Notwithstanding the
      termination of this Agreement, this Section 9 shall remain in full force
      and effect until:

      (c)   all payments, including but not limited to royalties, required to be
            made by the Licensee to the University under this Agreement have
            been made by the Licensee to the University, and

      (b)   any other claims of any nature or kind whatsoever of the University
            against the Licensee have been settled.

SECTION 10 - PRODUCTION AND MARKETING

10.01 DILIGENCE BY LICENSEE. The Licensee shall use commercially reasonable
      efforts to: (a) promote, market and sell the Products; (b) utilize the
      Technology; and (c) meet or cause to be met the world market demand for
      the Products within jurisdictions where Patent Rights exist. The Licensee
      shall also comply with the research and development timeline provided in
      Schedule "B".

10.02 RESTRICTION ON USE OF UNIVERSITY TRADE-MARKS, NAME. The Licensee shall not
      use any of the University Trade-marks or make reference to the University
      or its name in any advertising publicity whatsoever, without the prior
      written consent of the University. No prior written consent by the
      University is required when University is identified solely for the
      purposes of disclosures required by law or providing factual information
      so long as in either instance there is no implied endorsement of any

<PAGE>

      Product or use by the Licensee of the Patent Rights. Acknowledgements
      customary in scientific publications are expected.

10.03 EVALUATION. In the event that the University is of the view that the
      Licensee is in breach of the covenant contained in this Section 10, the
      University shall notify the Licensee and the parties hereto shall appoint
      an independent evaluator (the "Evaluator"), mutually acceptable to both
      parties, to review the efforts made by the Licensee with respect to the
      promotion, marketing, sale and distribution of the Products and the
      Technology (the "Evaluation").

10.04 EVALUATION (CONTINUED). In the event that the parties cannot agree on the
      Evaluator, the Evaluator shall be chosen by arbitration in accordance with
      Section 16.03. Evaluations shall be limited to one per calendar year.

10.05 EFFECT OF EVALUATION. If the Evaluator determines that the Licensee is in
      breach of the covenant contained in this Section 10, then the University
      shall have the right to terminate this Agreement as provided in Section 13
      herein. If the Evaluator determines that the Licensee is not in breach of
      the covenant contained in this Section 10, then the University shall not
      terminate this Agreement for breach of this Section.

10.06 COST OF EVALUATION. The cost of an evaluation hereunder shall be borne 50%
      by the Licensee and 50% by the University.

SECTION 11 - INSURANCE

11.01 INSURANCE REQUIRED FOR LICENSEE. One month prior to the first sale of a
      Product, the Licensee will give notice to the University of the terms and
      amount of the comprehensive public liability and product liability
      insurance which it has placed in respect of the same, which in no case
      shall be less than the insurance which a reasonable and prudent
      corporation carrying on a similar business would acquire. This insurance
      shall be placed with a reputable and financially secure insurance carrier,
      shall include the University, the Board of Governors, its faculty,
      officers, employees, students and agents as additional insureds, and shall
      provide primary coverage with respect to the activities contemplated by
      this Agreement. Such policy shall include severability of interest and
      cross-liability clauses and shall provide that the policy shall not be
      canceled or materially altered except upon at least 30 days' written
      notice to the University. The University shall have the right to require
      reasonable amendments to the terms or the amount of coverage contained in
      the policy. Failing the parties agreeing on the appropriate terms or the
      amount of coverage, then the matter shall be determined by arbitration as
      provided for herein. The Licensee shall provide the University with
      certificates of insurance evidencing such coverage seven days before
      commencement of sales of any Product and the Licensee covenants not to
      sell any Product before such certificate is provided and approved by the
      University.

<PAGE>

11.02 INSURANCE REQUIRED FOR SUBLICENSEES. The Licensee shall require that each
      sublicensee under this Agreement shall procure and maintain, during the
      term of the sublicense, public liability and product liability insurance
      in reasonable amounts, with a reputable and financially secure insurance
      carrier. The Licensee covenants that no party shall be subrogated to the
      rights of the Licensee for the purposes of pursuing any claim against the
      University.

11.03 INSURANCE NOT TO AFFECT INDEMNITIES. The existence of any insurance
      policies above will not relieve the Licensee from their obligations under
      the indemnification provisions contained in this Agreement.

SECTION 12 - DISCLAIMER OF WARRANTIES, LIMITATION OF LIABILITY

12.01 NO WARRANTIES. The University makes no representations or warranties,
      either express or implied, with respect to the Technology or Products and
      specifically disclaims any implied warranty of merchantability or fitness
      for a particular purpose. The University warrants and represents that it
      has the authority to license the Patent Rights to the Licensee in
      accordance with the terms herein.

12.02 NO LIABILITY FOR LOSS OF PROFITS. The University shall not under any
      circumstances be liable for any loss of profits, be they direct,
      consequential, incidental, or special or other similar or like damages
      arising from any defect, error or failure to perform with respect to the
      Technology or Products, even if the University has been advised of the
      possibility of such damages.

12.03 FURTHER LIMITATION OF LIABILITY. Notwithstanding any other provision of
      this Agreement, the University shall not be liable for any indirect,
      consequential, incidental, special or other similar damages, that may
      arise in any manner.

12.04 ADDITIONAL DISCLAIMERS. Nothing in this Agreement shall be construed as:

      (a)   a warranty or representation by the University as to the validity or
            scope of the License granted pursuant to this Agreement,

      (b)   a warranty or representation by the University that anything made,
            used, sold or otherwise disposed of under the License granted in
            this Agreement is or will be free from infringement of patents,
            copyrights, trade-marks, registered design or other intellectual
            property rights,

      (c)   an obligation by the University to bring or prosecute actions or
            suits against third parties for infringement of patents, copyrights,
            trade-marks, registered design or other intellectual property or
            contractual rights, or

      (d)   the conferring by the University of the right to use in advertising
            or publicity the University Trade-marks.

<PAGE>

12.05 ENFORCEMENT OF TECHNOLOGY. In the event of an alleged infringement of the
      Technology or any right with respect to the Technology, the Licensee shall
      have the right to prosecute litigation designed to enjoin infringers of
      the Technology upon notification to the University. The University agrees
      to co-operate to the extent of executing all necessary documents and to
      vest in the Licensee the right to institute any such suits so long as all
      the direct or indirect costs and expenses of bringing and conducting any
      such litigation or settlement shall be borne by the Licensee and in such
      event recoveries shall enure to the Licensee.

12.06 INFRINGEMENT ACTIONS BY THIRD PARTIES. In the event of any complaint
      alleging infringement or violation of any patent or other proprietary
      rights is made against the Licensee with respect to the use of the
      Technology or the manufacture, use or sale of the Products, the following
      procedure shall be adopted:

      (a)   the Licensee shall promptly notify the University upon receipt of
            any such complaint and shall keep the University fully informed of
            the actions and positions taken by the complainant and taken or
            proposed to be taken by the Licensee,

      (b)   subject to this section, all costs and expenses incurred by the
            Licensee in investigating, resisting, litigating and settling such a
            complaint, including the payment of any award of damages and/or
            costs to any third party, shall be borne by the Licensee,

      (c)   no decision or action concerning or governing any final disposition
            of the complaint shall be taken without full consultation with and
            by the University,

      (d)   the University may elect to participate formally in any litigation
            involving the complaint, to the extent that the court may permit but
            any additional expenses generated by such formal participation shall
            be borne entirely by the University (subject to the possibility of
            recovery of some or all of such additional expenses from the
            complainant),

      (e)   if the complainant is willing to accept an offer of settlement and
            one of the parties to this Agreement is willing to make or accept
            such offer and the other is not, then the unwilling party shall
            conduct all further proceedings at its own expense, and shall be
            responsible for the full amount of any damages, costs, accounting of
            profits and settlement costs in excess of those provided in such
            offer, but shall be entitled to retain into itself the benefit of
            any litigated or settled result entailing a lower payment of costs,
            damages, accounting of profits and settlement costs than that
            provided in such offer.

      (f)   the royalties and any milestone payments payable pursuant to this
            Agreement shall be paid by the Licensee to the University in trust
            from the date the complaint is made until such time as a resolution
            of the complaint has been

<PAGE>

            finalized. If the complainant prevails in the complaint, then the
            royalties paid to the University in trust pursuant to this Section
            shall be returned to the Licensee, provided that the amount returned
            to the Licensee hereunder shall not exceed the amount paid by the
            Licensee to the complainant in the settlement or other disposition
            of the complaint including reasonable Licensee legal costs. If the
            complainant does not prevail in the complaint, then the University
            shall be entitled to all royalties paid to it pursuant to this
            Section. Where the Licensee is thereafter obliged to also make
            royalty payments to the complainant (the "Third Party Payment"), it
            shall be entitled to deduct such Third Party Payment from the
            royalties otherwise payable hereunder, provided that the royalties
            payable to the University shall not be reduced by more than 50% of
            the royalties as currently calculated, had the complainant not been
            successful.

SECTION 13 - TERMINATION FOR DEFAULT

13.01 This Agreement may be terminated by either party, upon giving notice in
      writing to the other of its intention to do so, in the event that:

      (a)   such party makes an assignment for the benefit of creditors,
            appoints a receiver or manager for itself or a substantial part of
            its assets, or otherwise takes advantage of any statute or law
            designed for the relief of debtors; or

      (b)   such party is petitioned under any legislation in respect to
            bankruptcy or insolvency legislation by a third party and does not
            successfully challenge such petition within sixty (60) days
            following the filing of such petition; or

      (c)   any resolution is passed or order made or other steps taken for the
            winding up, liquidation or other termination of the corporate
            existence of such party, unless such is taken in conjunction with a
            corporate restructuring or reorganization or sale of the party as a
            going concern, or if such party ceases to carry on business;

      it being acknowledged that termination shall be effective upon delivery of
      a notice in accordance with Section 16.09 for any of (a), (b) or (c)
      hereof, without any further period of time permitted to such defaulting
      party to cure the default;

      (d)   such party fails to pay any monies required to be paid pursuant to
            this Agreement within five (5) days of the date due for payment,
            provided that written notice of such default has been delivered by
            the other party in accordance with Section 16.09 and the defaulting
            party fails within ten (10) Business Days after receipt of such
            notice to make such payment;

      (e)   such party fails to perform or otherwise breaches any material
            obligation hereunder, and such defaulting party has not cured the
            default, failure or breach within thirty (30) days following the
            giving of written notice in accordance with Section 16.09 hereof, or
            such longer period as may be

<PAGE>

            reasonably required in the circumstances, so long as the defaulting
            party is diligently pursuing its obligations to cure; or

      (f)   if the Licensee grants a security interest in the Technology to any
            other party without the prior written consent of the University.

In no event, shall any such notice of termination or intention to terminate be
deemed to waive any rights of such party's right to claim damages or to any
other remedy which the party giving the notice of breach may have as a
consequence of the other party's failure or breach.

13.02  Intentionally deleted.

13.03  RIGHTS UPON TERMINATION. If this Agreement is terminated pursuant to
       Section 13.01,

      (a)   all remaining Materials shall be returned to the University;

      (b)   all rights to the Technology (except Licensee Improvements) and the
            University Improvements shall revert to the University; and

      (c)   the Licensee shall cease to use the Technology (except Licensee
            Improvements to the extent practicing Licensee Improvements would
            not infringe Patent Rights) in any manner whatsoever or to
            manufacture the Products within five days of the date on which this
            Agreement is terminated ("Effective Date of Termination"),
            Saturdays, Sundays and statutory holidays excepted. The Licensee
            shall then deliver or cause to be delivered to the University a
            complete final accounting of all Net Revenue and of all other
            amounts payable to the Licensee in respect of the sublicensing of
            the Technology and/or the sale or distribution of Products, within
            30 days from the Effective Date of Termination. The accounting will
            also specify, in or on such terms as the University may in its sole
            discretion require, the inventory or stock of Products manufactured
            and remaining unsold (the "Unsold Products") on the Effective Date
            of Termination. If requested by the University, the Unsold Products
            shall be sold under the direction of the University until the Unsold
            Products have all been sold or the University waives any further
            interest in the Unsold Products. The Licensee will make royalty
            payments to the University in the same manner specified in Section 5
            herein on all Unsold Products.

13.04 PRESERVATION OF ALL REMEDIES AND RIGHTS. Upon any termination of this
      Agreement, the non-defaulting party shall have the right to enforce one or
      more remedies successively or concurrently in accordance with applicable
      law and retains all rights and remedies against the defaulting party. The
      University may proceed to enforce payment of all debts owed to the
      University and to exercise any or all of the

<PAGE>

      rights and remedies contained herein or otherwise available to the
      University by law or in equity.

13.05 NON-WAIVER. No condoning, excusing or overlooking by any party of any
      default, breach or non-observance by any other party at any time or times
      in respect of any covenants, provisos, or conditions of this Agreement
      shall operate as a waiver of such party's rights under this Agreement in
      respect of any continuing or subsequent default, breach or non-observance,
      so as to defeat in any way the rights of such party in respect of any such
      continuing or subsequent default or breach and no waiver shall be inferred
      from or implied by anything done or omitted by such party, save only an
      express waiver in writing.

      No exercise of a specific right or remedy by any party precludes it from
      or prejudices it in exercising another right or pursuing another remedy or
      maintaining an action to which it may otherwise be entitled either at law
      or in equity.

SECTION 14 - INDEMNITY

14.01 LICENSEE'S INDEMNITY. The Licensee hereby agrees to indemnify and hold
      harmless the University, its Board of Governors, officers, employees and
      agents against any and all claims arising out of the exercise of any
      rights of the Licensee under this Agreement including, without limiting
      the generality of the foregoing, against any damages or losses,
      consequential or otherwise, arising from or out of the use of Technology
      or Products licensed under this Agreement by the Licensee or its
      Affiliates, sublicensees, or agents, or their customers or end-users
      howsoever the same may arise.

14.02 ACKNOWLEDGEMENT OF EXPERTISE BY LICENSEE. The Licensee covenants and
      agrees that it has the expertise necessary to handle the Technology and
      the Products with care and without danger to the Licensee, its employees,
      agents, or the public. The Licensee covenants that it will not accept
      delivery of the Technology until it has requested and received from the
      University all necessary information and advice to ensure that it is
      capable of handling the Technology in a save and prudent manner in
      accordance with this Section 14.02.

14.03 COMPLIANCE BY LICENSEE WITH LAWS. The Licensee covenants and agrees that
      it will comply with all laws, regulations and ordinances, whether federal,
      provincial, municipal or otherwise with respect to the Materials, the
      Technology and/or this Agreement.

SECTION 15 - ADDITIONAL COVENANTS OF LICENSEE

15.01 CHANGE OF CONTROL. Unless otherwise agreed between the parties, the
      Licensee shall notify the University in writing within 30 days following:

<PAGE>

      (a)   the sale of a controlling interest (as defined in 1.01(a)) in the
            Licensee to pass to any person or persons other than those having a
            controlling interest at the date hereof whether by reason of
            purchase of shares or otherwise, or

      (b)   a reorganization of the Licensee (whether by merger, amalgamation or
            otherwise) or the transfer of any part of its business to a
            subsidiary or associated company.

15.02 POWER OF ENTRY. The Licensee shall permit any duly authorized
      representative of the University during normal business hours and at the
      University's sole risk and expense with two days notice to enter upon and
      into any premises of the Licensee for the purpose of inspecting the
      Products and the manner of their manufacture and the use of the Materials
      and the Technology and generally of ascertaining whether or not the
      provisions of this Agreement have been, are being, or will be complied
      with by the Licensee.

SECTION 16 - GENERAL

16.01 RELATIONSHIP. Nothing contained herein shall be deemed or construed to
      create between the parties hereto a partnership, joint venture or
      employment relationship. No party shall have the authority to act on
      behalf of any other party, or to commit any other party in any manner or
      cause whatsoever or to use any other party's name in any way not
      specifically authorized by this Agreement. No party shall be liable for
      any act, omission, representation, obligation or debt of any other party,
      even if informed of such act, omission, representation, obligation or
      debt.

16.02 GOVERNING LAW. This Agreement shall be governed by and construed in
      accordance with the laws of the Province of Ontario and the laws of Canada
      applicable therein.

16.03 DISPUTE RESOLUTION. In the event of a dispute between the parties arising
      out of or in connection with this Agreement or regarding the
      interpretation of the provisions hereof, the procedure set forth in
      Schedule "A" shall apply.

16.04 INTERIM PROTECTION. Section 16.03 shall not prevent a party hereto from
      applying to a court of competent jurisdiction for interim protection such
      as, by way of example, an interim injunction.

16.05 ENUREMENT. Subject to the limitations hereinbefore expressed, this
      Agreement shall enure to the benefit of and be binding upon the parties,
      and their respective successors and permitted assigns.

16.06 HEADINGS. Marginal headings as used in this Agreement are for the
      convenience of reference only and do not form a part of this Agreement and
      are not be used in the interpretation hereof.

<PAGE>

16.07 SURVIVAL OF COVENANTS. The terms and provisions, covenants and conditions
      contained in this Agreement which by the terms hereof require their
      performance by the parties hereto after the expiration or termination of
      this Agreement including, without limitation the provisions of Section 8,
      shall be and remain in force notwithstanding such expiration or other
      termination of this Agreement for any reason whatsoever.

16.08 SEVERABILITY. In the event that any part, section, clause, paragraph or
      subparagraph of this Agreement shall be held to be indefinite, invalid,
      illegal or otherwise violable or unenforceable, the entire agreement shall
      not fail on account thereof, and the balance of the Agreement shall
      continue in full force and effect.

16.09 NOTICES. All notices, requests, directions or other communications
      required or permitted herein will be in writing and will be delivered to
      the parties hereto respectively as follows:

      If to the Licensee:

      Biostream, Inc.
      160 Second Street
      Cambridge, Massachusetts
      USA 02142

      Attention:             Dr. John Babich, President and C.E.O.

      Telecopier No:         617-492-5664

      If to the University:

      Respecting administrative and financial matters, and interpretation,
      amendment or termination of this Agreement:

      Office of Industry Liaison
      Stevenson-Lawson Building
      Room 319
      The University of Western Ontario
      London, Ontario
      N6A 5B8

      Attention:             Director

      Telecopier No:         519-661-3907
<PAGE>

      FOR SCIENTIFIC AND TECHNICAL MATTERS:

      Department of Chemistry
      Faculty of Science
      The University of Western Ontario
      London, Ontario
      N6A 5B8
      Attention:            Duncan Hunter

      Telecopier No:        519-661-3022

      In order for any notice, request, direction, or other communication to be
      effective, it will be delivered in person or sent by registered mail or
      facsimile (followed by hard copy) addressed to the party for whom it is
      intended at the above-mentioned address and will be deemed to have been
      received if delivered in person, when so delivered; and if sent by
      registered mail, when the postal receipt is acknowledged by the other
      party; if sent by facsimile, when transmitted. Notwithstanding the
      foregoing, any notice where a party gives notice of termination or of its
      intention to terminate under Section 13 shall be delivered by courier with
      signed receipt. The address of either party may be changed by notice in
      the manner set out in this provision.

16.10 ENTIRE AGREEMENT. This Agreement sets forth the entire understanding
      between the parties and no modifications hereof shall be binding unless
      executed in writing by the parties hereto.

16.11 TIME OF THE ESSENCE. Time shall be of the essence of this Agreement.

16.12 NUMBER, GENDER. Whenever the singular or masculine or neuter is used
      throughout this Agreement the same shall be construed as meaning the
      plural or feminine or body corporate when the context of the parties
      hereto may require.


<PAGE>

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

                                    THE BOARD OF GOVERNORS OF
                                    THE UNIVERSITY OF WESTERN ONTARIO

                                    By:  /s/ Douglas S. Gill
                                         ---------------------------------------
                                         Douglas Gill
                                         Director, Office of Industry Liaison

                                    I have authority to bind the University.

                                    BIOSTREAM, INC.

                                    By:  /s/ John W. Babich
                                         ---------------------------------------
                                         Name: JOHN W. BABICH
                                         Title: PRESIDENT

                                    By:
                                         ---------------------------------------
                                         Name:
                                         Title:

                                    I/we have authority to bind the Corporation.

<PAGE>

                                  SCHEDULE "A"

                               DISPUTE RESOLUTION

In the event a dispute or disagreement (hereinafter called "Dispute") arises
between the parties in connection with the interpretation of any provision of
this Agreement or the compliance or non-compliance therewith, or the validity or
enforceability thereof, or the performance or non-performance of either party to
the Agreement, the following Dispute resolution process shall be followed by the
parties:

i.    A Dispute will be deemed to have arisen upon the delivery of a written
      notice by one party to the other describing the Dispute (herein called the
      "Dispute Notice"). Upon delivery of the Dispute Notice, the parties agree
      to attempt to resolve the Dispute in a prompt and expeditious manner.
      Except for the Dispute Notice, all communications between the parties will
      be on a without prejudice basis.

ii.   If the parties have not been able to resolve the dispute in a prompt and
      expeditious manner after delivery of the Dispute Notice, either party may
      at any time thereafter request by written notice to the other party that
      the Dispute be escalated to Senior Management.

iii.  In the event such a request with written notice is made, each party shall
      make available the senior executives specified in the following subsection
      ("Senior Management") who shall meet within fifteen (15) Business Days
      after such request is made at the offices of the party which received the
      request to attempt to resolve the Dispute.

iv.   The Senior Management appointee for each party is as follows:

Licensee: Dr. John Babich, President and CEO

University: Mr. Doug Gill, Director, Office of Industry Liaison

Either party may change its Senior Management appointee upon prior written
notice to the other.

In case such Dispute is not settled amicably by Senior Management within thirty
(30) days of escalation to Senior Management, such Dispute shall be arbitrated
by an Arbitration Board acting in accordance with the provisions of the
Arbitration Act, 1991 (Ontario), whose decision shall be final and binding upon
the parties. The Arbitration Board shall consist of the person or person that
the parties may agree on and in default of agreement within twenty (20) days
following the expiration of the above-mentioned thirty (30) day period, each of
the parties in dispute shall nominate one member to serve on the Arbitration
Board and shall give notice to the other party of the name of its nominee. If
one party fails to give this notice within fifteen (15) days after the other
party has done so, then the member nominated by the other party shall constitute
the



<PAGE>

Arbitration Board. If each party gives this notice, then the two members so
nominated by agreement shall select a third member who shall be Chairman. If the
original two members are unable to agree upon a third member within thirty (30)
days after the second notice has been given, then either party may apply to a
Judge of an appropriate court of the jurisdiction in which the arbitration will
take place to appoint the third member who shall be unconditionally accepted by
both parties. The place of arbitration for disputes for which arbitration is
initiated by either party shall be Toronto, Ontario. Each member shall have
knowledge of and experience in the nuclear medicine industry. The language of
any arbitration will be English.

The arbitration hearing shall commence within sixty (60) days after appointment
of the Arbitration Board is done and shall be completed and a binding award
rendered in writing within sixty (60) days after commencement of the hearing
unless exceptional circumstances warrant delay. The decision of the Arbitration
Board may be entered in any court of competent jurisdiction and execution
entered thereupon forthwith. The law specified in Section 16.02 of This
Agreement above shall apply.

Each party shall bear the cost of preparing its own case. The Arbitration Board
shall have the right to include in the award the prevailing party's costs of
arbitration and reasonable fees of attorneys, accountants, engineers and other
professionals incurred by it in connection with the arbitration.

Notwithstanding the provisions of this Schedule "A", the parties recognize that
a party may desire to seek emergency, provisional, or summary relief (including
temporary injunctive relief) to enforce the provisions of this Agreement
relating to protection of Intellectual Property and/or Confidential Information.
A party may seek such relief, provided, however, that immediately following the
issuance of any emergency, provisional, temporary injunctive or summary relief,
any such judicial proceedings shall be stayed (and each party shall consent to
such stay) pending resolution of any related underlying claims between the
parties.



<PAGE>

                                  SCHEDULE "B"
                             DILIGENCE BY LICENSEE

Years 2001 and 2002 Licensee is funding additional research by way of a two-year
contract research agreement with the University. During this period there shall
be no additional diligence requirements.

During the year 2003, Licensee will label one Product candidate with the
licensed technology and complete all animal toxicology studies necessary to file
an IND in the US and shall file an IND either in the US or its equivalent in
Canada.

During the year 2004, Licensee will begin a Phase I clinical trial of a Product
candidate.

During the year 2005, Licensee will begin a Phase II clinical trial of a Product
candidate.

During the year 2006, Licensee will begin a Phase III clinical trial of a
Product candidate.

During the year 2007, Licensee will file a US NDA or its equivalent in Canada
for a Product candidate.

Licensee will achieve its first sale of Product within six months of US FDA
approval of a NDA or equivalent approval in Canada.

If at any time the Product candidate fails in human trials, Licensee shall
within 30 days of that determination notify the University and Licensee shall
have the opportunity to label another Product candidate with the licensed
technology and the timeline for Diligence by Licensee shall be restarted.

In any year after 2002 if Licensee funds additional research on the licensed
technology at the same or greater levels as in 2001 and 2002, then the Section
10.01 diligence requirements shall be waived for that year.