Document:

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                                                                  EXHIBIT 10.10

                            PRODUCT SUPPLY AGREEMENT

         This Agreement, dated as of December 7, 1999, is by and among CTI, Inc.
a Tennessee corporation with its principal offices 810 Innovation Drive,
Knoxville, TN 37932 ("CTI", which term shall include all of CTI's subsidiaries
and affiliates, whether now existing or hereafter formed or acquired, including
but not limited to P.E.T. Net Pharmaceutical Services, Inc. ("PETNET")); PETNET;
and Cambridge Isotope Laboratories, Inc. ("CIL"), a Delaware corporation with
its principal offices at 50 Frontage Road, Andover, Massachusetts 01810
(collectively, the "Parties").

                                   WITNESSETH:

         WHEREAS, CTI is in the business of developing, manufacturing and
distributing positron imaging instrumentation and radiopharmaceuticals and
related services for the healthcare industry, which require enriched 0-18 water
(the "Product", which term, unless the context requires otherwise, shall include
New Product and Recovery Water, as each is defined herein) to perform their
function; and

         WHEREAS, CTI wishes to assure an adequate supply of the Product
manufactured to certain specifications; and

         WHEREAS, CIL is willing, on the terms and conditions of this Agreement,
to manufacture, package and supply to CTI certain quantities of the Product
which meets certain specifications; and

         WHEREAS, CTI is willing, on the terms and conditions of this Agreement,
to purchase such quantities of the Product from CIL; and

         NOW, THEREFORE, CTI, PETNET and CIL hereby agree as follows:

         1. Term of Agreement. The term of this Agreement shall begin as of the
date it is signed and shall remain in effect through * (the "Initial Term"),
subject to termination or expiration in accordance with Section 15.

         2. Manufacture, Sale and Purchase of Products. The Product shall
include Product that meets the specifications of Exhibit A and which is newly
manufactured by CIL ("New Product") and Product that meets the specifications of
Exhibit A and which is produced by CIL from Used Product (as defined below)
originally purchased from CIL and returned to CIL after use in Positron Emission
Tomography as described in Section 2.2 ("Recovery Water").

         2.1 Minimum Purchases of New Product. CIL shall manufacture and deliver
to CTI, and CTI shall purchase, accept and pay for, (a) * kg (* kilograms) of
New Product during the period from October 1, 1999 through December 31, 2000;
(b) * kg (* kilograms) of New Product during the year ending December 31, 2001;
and (c) * kg (* kilograms) of New Product during the year ending December 31,
2002. Unless agreed to in purchase orders placed by CTI and accepted by CIL, CIL
shall ship New Product to CTI on approximately a monthly basis such that 25%
(twenty-five percent) of the annual quantity described above would be shipped to
CTI during each calendar quarter on or before the last day of each calendar
quarter commencing with the quarter ending December 31, 2000.

*  Omitted information is the subject of a request for confidential treatment
   pursuant to Rule 406 under the Securities Act of 1933 and has been filed
   separately with the Securities and Exchange Commission.

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         2.2 Purchase Guarantee.

         (a) In addition to the minimum purchase requirements set forth in
Section 2.1 hereof, CTI agrees to purchase, in each calendar year during the
Initial Term and any Renewal Term, not less than * of its New Product
requirements from CIL. With respect to purchases of New Product in excess of the
amounts described in Section 2.1 hereof, CTI shall submit purchase orders to CIL
specifying the quantity of New Product CTI wishes to purchase and the delivery
date thereof. CIL shall, in writing, accept or reject such purchase order within
ten (10) days of its receipt of such order. If CIL does not accept such Purchase
Order, CTI shall be free to purchase the amounts set forth therein from a to
such third party on delivery terms no more favorable to such third party than
those set forth in the Purchase Order submitted to CIL. CTI will provide CIL a
statement, signed by the Chief Financial Officer of CTI, no later than January
31 of each year certifying that CTI has purchased no less than * of New Product
purchased by CTI from all sources during the preceding calendar year from CIL.
CIL has the right to audit the books and records of CTI directly related to its
purchase of New Product from all sources to verify the certification.

         (b) During this Agreement, on or before January 31 of each calendar
year, CIL shall give written notice to CTI, signed by the Chief Financial
Officer of CIL, of CIL's good faith estimate of its production capacity for New
Product from its Xenia, Ohio manufacturing facility existing on the date of this
Agreement (the "Estimated Annual Capacity"). Unless mutually agreed upon by the
parties, future expansion of this facility, if any, shall not be considered in
the preparation of such estimate. CTI shall have the option to purchase * of the
Estimated Annual Capacity set forth in such notice to the extent that such
amount exceeds the minimum purchase requirements set forth in Section 2.1
hereof. In order to exercise this option, CTI must place a written purchase
order for such amount on or before April 30 of the applicable calendar year. CIL
shall deliver such order on or before December 31 of such year.

         2.3 Recovery Water.

         (a) In addition to manufacturing and selling New Product to CTI, CIL
shall produce Recovery Water, which involves the re-enrichment of Used Product
to meet the specifications set forth in Exhibit A annexed herein. "Used Product"
is water that has been depleted in 0-18 levels below 95% enrichment. Used
Product may have elevated levels of minerals and organics relative to New
Product weight.

         (b) CTI agrees to use its blest efforts to return all of its Used
Product originally purchased from CIL to CIL for reprocessing into Recovery
Water hereunder, at no cost to CIL, commencing upon CIL's written notice to CTI
that it is prepared to begin reprocessing Used Product. CTI agreed that the
enrichment of Used Product returned to CIL will normally be 85% of 0-18 or
higher, but in no case will be less than 80% 0-18. CTI agrees that the Used
Product will not contain radioactive substances at levels that would require CIL
to obtain a license for shipping or handling as radioactive material.

         (c) CTI acknowledges that CIL is not currently producing Recovery
Water; that shipments of Recovery Water are not expected to be available for
shipment to CTI until approximately nine months following the delivery of Used
Product to CIL by CTI; and that the quantity of Recovery Water to be produced by
CIL for sale to CTI pursuant to this Agreement

*  Omitted information is the subject of a request for confidential treatment
   pursuant to Rule 406 under the Securities Act of 1933 and has been filed
   separately with the Securities and Exchange Commission.

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will depend, in part, upon the quantity and enrichment of the Used Product
received by CIL from CTI.

         (d) CTI agrees to accept delivery, purchase and pay for all Recovery
Water produced by CIL using the Used Product returned to CIL by CTI pursuant to
Section 2.3(b) hereof.

         2.4 Price.

         (a) The price of the Product per one gram shall be $*. All prices are
F.O.B. CIL's facilities in Andover, Massachusetts or Xenia, Ohio, and CTI shall
pay all freight, insurance and taxes with respect to the sale and purchase of
the Product.

         (b) CTI shall be entitled to a credit of $* per gram for each gram of
0-18 water contained in the Used Product returned to CIL by CTI pursuant to
Section 2.3(b) hereof *. Due to the length of time necessary to produce Recovery
Water from Used Product and in consideration of CIL's efforts to produce such
Recovery Water, any credit earned by CTI pursuant to this Section 2.4(b) for
Used Product returned to CIL from the date of this Agreement through December
31, 2000 may be applied to CTI only against invoices for Product which is
shipped to CTI on or after January 1, 2001.

         2.5 Title and Risk of Loss. Title shall pass from CIL to CTI upon
delivery from CIL to a common carrier at CIL's facilities in Andover,
Massachusetts or Xenia, Ohio. Any risk arising from the loss or destruction of
the Product or any change in the quality of the Product or any other occurrence
with respect to the Product at the time of or prior to the delivery of the
Product to such carrier shall be borne by CIL, except where the occurrence is
due to a cause for which CTI is liable, and any such risk from any occurrence
after the delivery of the Product to such carrier by CIL shall be borne by CTI,
except where the occurrence is due to a cause for which CIL is liable.

         2.6 Specifications. The Product shall meet the specifications set forth
on and be packaged in accordance with Exhibit A annexed hereto.

         2.7 Ownership of Names and Marks. Each Party acknowledges validity and
exclusive ownership and right to use, to grant permission to use and to control
its respective name and neither Party will acquire any right of any nature in or
to the other Party's name.

         3. Guarantee. CTI hereby agrees to unconditionally guaranty the
obligations and duties of CTI and each other subsidiary or affiliate of CTI that
purchases Product from CIL pursuant to this Agreement. CTI acknowledges and
agrees CTI will receive a substantial benefit from CIL's entering into this
Agreement, and that it is willing and authorized to enter into this guarantee in
order to induce CIL to enter into this Agreement.

         4. Terms of Payment. CIL's invoices for Products shall become due and
payable thirty (30) days after delivery, subject to adjustment for defective or
non-conforming Product in accordance with Section 6.

*  Omitted information is the subject of a request for confidential treatment
   pursuant to Rule 406 under the Securities Act of 1933 and has been filed
   separately with the Securities and Exchange Commission.

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         5. Warranty of CIL.

         (a) CIL warranties that it will perform all of its obligations under
this Agreement in accordance with this Agreement and with all applicable laws
and regulations relating to CIL's manufacture, sale, labeling, advertising, and
distribution of the Product.

         (b) CIL warrants that all the Product provided to CTI will, on the date
of shipment and for 90 days thereafter, meet the specifications identified in
Exhibit A to this Agreement and will comply with all applicable laws and
regulations. During the 90 days after delivery, CTI agrees to store all Product
in a secure, controlled environment free from excess heat, humidity or physical
shock.

         (c) THE WARRANTIES SET FORTH IN THIS SECTION 5 ARE EXCLUSIVE AND ARE
GIVEN IN LIEU OF ANY AND ALL OTHER WARRANTIES, EXPRESS OR IMPLIED, ARISING BY
OPERATION OF LAW OR OTHERWISE. CIL SPECIFICALLY DISCLAIMS ANY OTHER INCLUDING,
WITHOUT LIMITATION, ANY WARRANTIES OR MERCHANTABILITY AND/OR FITNESS FOR A
PARTICULAR PURPOSE. EXCEPT AS SET FORTH IN SECTION 12 HEREOF, CTI'S SOLE REMEDY
FOR CIL'S BREACH OF THESE WARRANTIES SHALL BE FOR MONEY DAMAGES WHICH SHALL IN
NO EVENT EXCEED THE PRICE FOR THE LOT OF PRODUCTS AS TO WHICH THE BEACH IS
CLAIMED.

         (d) IN NO EVENT CIL SHALL BE LIABLE FOR ANY SPECIAL, INDIRECT OR
CONSEQUENTIAL DAMAGES OF ANY NATURE, INCLUDING WITHOUT LIMITATION, LOST PROFITS,
EVEN IF ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.

         6. Defective or Nonconforming Products. If the Product provided by CIL
meets the specifications as defined in Exhibit A, it will be accepted and paid
for as described in Section 4. If CTI finds that any Product specifications are
not met, then CTI shall promptly notify CIL of the problem and provide CIL with
its test data and results. CTI agrees to provide CIL written notification of any
nonconformity within 90 days of receipt of the Product. In the event CIL has not
received a notice from CTI within 90 days of CTI's receipt of the Product, the
Product shall be deemed to be accepted by CTI. CIL will, at its own cost,
promptly retest the batch of Product which is claimed by CTI to be
nonconforming, as appropriate, and supply its test results to CTI. If this
re-test shows that the Product does not meet specifications, then CIL will
replace that nonconforming Product, provided, however, that all nonconforming
Product is returned to CIL at CIL's cost and expense in its origin containers.

         7. Warranty of CTI. CTI represents and warrants to CIL that all use of
the Product in applications involving humans by CTI, and its affiliates,
licensees and customers, shall comply in all respects with all applicable laws
and regulations, and that such compliance is the sole responsibility of CTI or
its affiliates to the extent that CTI has control over such use, and shall be at
the sole expense of CTI. In no event shall CIL have any responsibility, or bear
any expense in connection with such compliance.

         8. Inspection Rights. Upon reasonable prior notice during normal
business hours, CTI shall have access to CIL's facilities in order to review,
with respect to CIL's manufacture of the Product, CIL's adherence to quality
standards, CGMP requirements, Product specifications applicable to the Product
and applicable laws and regulations.

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         9. Force Majeure. Each Party's obligations (other than payment
obligations) under this Agreement and under any purchase order or invoice
submitted by either Party to the other hereunder shall be excused and suspended
during the existence of any event of force majeure, which shall consist of a
strike, work stoppage or other labor dispute or a war, riot, fire, flood, storm
or other Act of God beyond the control of such Party, or which may consist of a
governmental or governmental agency order of general or geographic area-wide
application that is not directed solely at such Party, but only to the extent
that such event is responsible for such Party's non-performance of any such
obligation. Neither Party shall be responsible or liable for any loss, damage,
injury, cost or expense suffered, incurred or sustained by the other Party by
reason of such nonperformance due to force-majeure, and provided that, in the
event of either Party's nonperformance due to a strike, work stoppage, or labor
dispute, such Party shall make its reasonable commercial efforts to recover or
restore any loss production or other effect of such noncompliance.

         10. Mutual Representations. Each Party hereby represents and warrants
to the other: that it has full corporate power and authority and is duly
authorized under applicable law, its certificate of incorporation and its
by-laws, to own its properties and to conduct its business as presently
conducted and as herein contemplated, and to enter into and perform this
Agreement in accordance with the terms hereof; and that neither such entering
into nor such performance violates or will violate such certificate of
incorporation or by-laws or any loan agreement, lease agreement, indenture or
other instrument, or any federal, state or local law, regulation or ordinance
applicable to such Party or by which it is bound.

         11. Government Proceedings. Each Party hereby warrants and represents
that it knows of no pending or threatened governmental actions (judicial,
regulatory or otherwise) that would or might prevent or materially interfere
with its performance of this Agreement, and each Party hereby covenants and
agrees promptly to notify the other in writing of the taking or threat of any
such action.

         12. CIL Indemnity. CIL shall defend, indemnify and hold harmless CTI,
its officers, directors, employees, agents, subsidiaries, successors and assigns
from and against any and all costs, expenses, damages, judgment, liabilities,
cost and expenses (including reasonable attorney's fees) arising from a claim or
lawsuit resulting from any breach by CIL of its warranties under Section 5(a)
hereof, without regard to the limitations set forth in Section 5(c) hereof. CTI
shall give CIL prompt written notice of such claim or lawsuit and shall permit
CIL to undertake the defense thereof at CIL's expense. CTI shall cooperate in
such defense, to the extent reasonably requested by CIL, at CIL's expense. If
CIL accepts the defense, CTI shall have the right to participate in such
defense, at its own expense, to the extent that in its judgment CTI may be
prejudiced thereby. In any claim made or suit brought for which CTI seeks
indemnification under this section, CTI shall not settle, offer to settle or
admit liability or damages without the prior written consent of CIL, such
consent not being unreasonably withheld.

         13. CTI Indemnity. CTI shall defend, indemnify and hold harmless CIL,
its officers, directors, employees, agents, subsidiaries, successors and assigns
from and against any and all costs, expenses, damages, judgments, liabilities,
costs and expenses (including reasonable attorney's fees) arising from a claim
or lawsuit resulting from 1) the testing, marketing, advertisement, sale or
distribution of CTI's finished product or service in which the Product is used;
2) any contamination of or defect in the Product arising after shipment by CIL;
3) the use of CTI's finished products or services by any person; or 4) any
breach by CTI of its warranties

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under Section 7. Notwithstanding the foregoing, CTI shall not be required to
indemnify and hold harmless CIL for any liability arising, in whole or in part,
out of CIL's breach of warranties for which CIL has assumed an indemnification
obligation under Section 12 hereof. CIL shall give CTI prompt written notice of
such claim or lawsuit and shall permit CTI to undertake the defense thereof at
CTI's expense. CIL shall cooperate in such defense, to the extent reasonably
requested by CTI, at CTI's expense. If CTI accepts the defense, CIL shall have
the right to participate in such defense, at its own expense, to the extent that
in its judgment CIL may be prejudiced thereby. In any claim made or suit brought
from which CIL seeks indemnification under this section, CIL shall not settle,
offer to settle or admit liability or damages without the prior written consent
of CTI, such consent not being unreasonably withheld.

         14. No Agency Relationship. Nothing contained in this Agreement and no
activity by either Party in the performance hereof shall constitute, create, or
be deemed to constitute or create between either Party, or between or among
either Party and any of its officers, directors, employees or agents, an agency
or representative relationship or a partnership, joint venture or association,
nor shall this Agreement or any activity by either Party hereunder create or be
deemed to create any express or implied right, power or authority of either
Party to enter into any agreement or commitment, or to incur any liability or
obligation, on behalf of the other Party; it being understood and agreed that
each Party is and shall remain an independent contractor with respect to the
other.

         15. Expiration, Termination and Renewal. Except as otherwise specified
in this Agreement, this Agreement shall expire at the end of its Initial Term.
In addition, this Agreement is subject to termination by either Party, at its
option, effective within the time period noted below after its delivery of
written notice to the other Party upon the happening of the following event: The
other Party breaches in any material respect any of its covenants, agreements,
obligations, warranties or representations, hereunder and such breach remains
unremedied for ninety (90) days after delivery of notice of such beach by the
Party delivering notice of termination. If CIL is not then in breach of its
obligations to deliver New Product in accordance with the provisions of Section
2.1 of this Agreement, then this Agreement will automatically renew for the *
period beginning January 1, 2003 and ending December 31, * (the "Renewal Term")
on the same terms and conditions set forth herein, including but not limited to
the provisions of Section 2.2. In January 2002, CTI and CIL will meet to set
minimum purchase amounts for New Product under Section 2.1 and prices under
Section 2.4 for the Renewal Term. The prices of New Product and Recovery Water
during the Renewal Term *

         16. Continuation of Representations, Warranties and Indemnification. No
expiration or termination of this Agreement by either Party shall terminate,
cancel or otherwise affect the continued validity and enforceability without
expiration, of each Party's duty to indemnify, defend and hold the other
harmless under Section 12 and 13 and the confidentiality provisions under
Section 20.

         17. Successors and Assigns. Neither Party shall, without the prior
written consent of the other, assign, transfer, subcontract or take any other
action that shall constitute, give rise to or result in the assignment, transfer
or subcontracting of any of its duties or obligations hereunder. This Agreement
shall be binding upon and inure to the benefit of the permitted successors and
assigns of each Party.

*  Omitted information is the subject of a request for confidential treatment
   pursuant to Rule 406 under the Securities Act of 1933 and has been filed
   separately with the Securities and Exchange Commission.

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         18. Notices. All notices and other communication hereunder shall be
given by certified or registered United States mail, postage prepaid (provided
that any such notice or communication may be transmitted by facsimile machine if
the original thereof is placed in the United States mail on the same day as it
is faxed), addressed as follows (or to such other address as either Party shall
notify in writing to the other):

         If to CIL:

                                         Cambridge Isotope Laboratories, Inc.
                                         50 Frontage Road
                                         Andover, Massachusetts 01810
                                         Attention: Joel C. Bradley, President
                                         Telecopier No. (978) 749-2768;

                                                and

         If to CTI:

                                         CTI, Inc.
                                         810 Innovation Drive
                                         Knoxville, Tennessee 37932
                                         Attention:  Terry Douglass
                                         Telecopier No. (423) 218-3000

         If to PETNET:

                                         P.E.T.NET Pharmaceutical Services, Inc.
                                         810 Innovation Drive
                                         Knoxville, Tennessee 37932
                                         Attention:  Terry Douglass
                                         Telecopier No. (423) 218-3000

         19. Entire Agreement. This Agreement constitutes the entire agreement
between the Parties concerning its subject matter, entirely superseding any
prior agreements or understanding, oral or in writing, concerning such subject
matter. It may be modified, supplemented or amended only by a written instrument
signed by a duly authorized representative of each Party.

         20. Confidentiality. Neither Party shall, without the prior written
consent of the other, disclose to any third Party the existence of any aspect of
this Agreement except to the extent that such disclosure is required by law or
to the extent that such disclosure to employees is necessary for the disclosing
Party's performance hereof. CTI and CIL shall maintain in strict confidence any
and all materials and information relating to the Product disclosed or provided
by the other party and any and all confidential technical or business
information relating to the other party which has been obtained in connection
with performance of this Agreement, and shall not disclose any such materials or
information to any third party without the other party's prior written consent,
except where the disclosure is necessary for carrying out the purpose of this
Agreement; provided, however, that the foregoing restrictions shall not apply
with respect to any materials or information which;

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         (a) can be proven to have been in that party's possession prior to its
disclosure by the other party;

         (b) is in the public domain prior to its disclosure by the other party;

         (c) has become part of the public domain subsequent to its disclosure
by the other party through no fault of the recipient party;

         (d) has been lawfully obtained from a third party having authority to
disclose, without incurring the obligation of confidentiality; or

         (e) is required to be disclosed by applicable law.

In any case where either party hereto discloses any of the materials or
information disclosed or provided by the other party to a third party with the
consent of the other party or for the purpose of carrying out the purpose of
this Agreement, the disclosing party shall cause the third party to accept the
same confidentiality obligations as those of the disclosing party under this
Agreement. CTI hereby agrees to be bound by the provisions of this Section 20 to
the same extent as CTI.

         21. Headings. The section headings in this Agreement are only for
convenience of reference and shall have no bearing on the meaning or
construction of any provision of this Agreement.

         22. Additional Provisions Related to PETNET. For so long as (a) PETNET
is a subsidiary or affiliate of CTI; and (b) CTI is not in breach of this
Agreement, PETNET shall meet its contractual obligations hereunder by purchasing
its requirements for Product from CTI, and shall not be required to purchase its
requirements for Product directly from CIL. Upon the earlier of (a) PETNET
ceasing to be a subsidiary or affiliate of CTI; or (b) CTI's breach of this
Agreement (the earlier of such events being referred to as the commencement of
the "PETNET Direct Purchase Period"), PETNET shall immediately purchase its
requirements for Product directly from CIL in accordance with this Agreement,
and otherwise comply with and fulfill all of the obligations applicable to CTI
under this Agreement; provided, however, that in the event that the PETNET
Direct Purchase Period commences because PETNET ceases to be a subsidiary or
affiliate of CTI, so long as CTI continues during the PETNET Direct Purchase
Period to fulfill its minimum purchase obligation under Section 2.1 hereof,
PETNET shall not be required to make such minimum purchases. Nothing in this
Section 22 shall amend, modify or alter any of CTI's obligations under this
Agreement, which shall continue unaffected by the commencement of the PETNET
Direct Purchase Period and PETNET's obligations during such period.

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         23. Dispute Resolution.

         23.1 Negotiation by Senior Executives. The parties shall attempt in
good faith to resolve any dispute arising out of, or relating to this Agreement
promptly by negotiation between senior executives who have authority to settle
the controversy. Any party may give the other parties written notice of any
dispute not resolved in the ordinary course of business. Within thirty (30) days
after delivery of the notice, the executives designated by each party shall meet
at a mutually acceptable time and place and thereafter as often as they
reasonably deem necessary, to attempt to resolve the dispute. If the dispute has
not been resolved within sixty (60) days after delivery of the notice, or if the
parties fail to meet within thirty (30) days, any party may initiate subsequent
proceedings as contemplated herein.

         23.2 Arbitration. In the event of any disputes involving the parties,
or arising out of or relating to this Agreement, its execution, or performance
hereunder, other than disputes based on third party pleading following a claim
filed against either party by a third party (such as for product liability),
shall be settled by final and binding arbitration before the American
Arbitration Association (the "AAA") or its successor. Either party may submit
the dispute for arbitration by filing a written demand therefor with the AAA and
serving the demand therefore on the other party. All arbitration hereunder shall
be governed by the expedited commercial arbitration rules of the AAA in effect
at the time the arbitration is commences, as the same may be modified during the
arbitration. The arbitrator shall determine whether a dispute is subject to
arbitration and resolve matters relating to discovery. The arbitrator may grant
injunctive relief, but in no event will an arbitrator be empowered to award
punitive or exemplary damages. Any arbitration pursuant to this agreement shall
be conducted by one (1) arbitrator selected by the parties, or, if the parties
are unable to agree, by the AAA. The hearings in connection with any arbitration
hereunder shall be conducted in Washington, D.C., at such time and place
selected by the arbitrator. Any decision of the arbitrator shall be in writing
and a copy thereof shall be delivered to each of the parties within thirty (30)
days of the conclusion of the hearings. The judgment upon the award rendered in
any such arbitration shall be final and binding upon the parties and may be
entered and enforced in any court having jurisdiction.

         23.3 Injunctive Relief. If any of the covenants or agreements set forth
in this Agreement are violated or threatened to be violated, any party
acknowledges and agrees that such violation or threatened violation will cause
irreparable injury to the non-defaulting party, that the remedy at law for such
violation will be inadequate, and that the non-defaulting party shall be
entitled to obtain an injunction or preliminary injunction prohibiting the
continuance, occurrence or recurrence of such violation or threatened violation
or an injunction requiring compliance with such covenants or agreements, in
addition to (and not in limitation of) any other rights and remedies available
to the non-defaulting party at law or equity. The commencement or obtaining an
injunction shall not be deemed a waiver of its right to arbitration, damages or
other relief. In the event any party is required to post a bond in connection
with seeking or obtaining injunctive relief, then the parties agree that the
amount of such bond shall be in the lowest amount required by applicable law.

         23.4 Forum. All actions brought by any party not submitted to
arbitration, other than the enforcement of any arbitration award, shall be
brought only in the federal courts located in Delaware, which shall have
exclusive jurisdiction for all claims arising out of or relating to this
Agreement or not arbitrated, other than enforcing an arbitration award. The
parties consent to

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the exclusive jurisdiction of the federal courts in Delaware, and waive any
right they may have to object to the jurisdiction of such courts.

         23.5 Waiver of Jury Trial. The parties irrevocably waive trial by jury
in any action, proceeding or counterclaim, whether at law or in equity, brought
by either of them, to the fullest extent permitted by law.

         23.6 Attorney's Fees. The prevailing party in any arbitration,
litigation or other proceeding arising out of or relating to this Agreement, its
execution or its enforcement, shall recover its reasonable attorneys' fees and
costs (including expert witness fees and costs, travel time and associated
costs, copy costs, deposition costs, exhibit costs, fees and costs on appeal,
fees and costs associated with execution on any judgment or order, special
transcript costs, and the appointment of a special master or discovery referee),
in addition to such other relief as may be awarded.

         23.7 Governing- Law. This Agreement shall be governed by and construed
in accordance with the laws of the State of Delaware without application of any
conflict of laws principles.

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         IN WITNESS WHEREOF, the parties have caused this Agreement to be signed
by their duly authorized representatives as of the date first above written.

                                       CTI, INC.

                                       By: /s/ T. D. Douglass
                                           -------------------------------------
                                           [Name & Title]    President

                                       P.E.T. NET PHARMACEUTICALS, INC.

                                       By: /s/ T. D. Douglass
                                           -------------------------------------
                                                             President

                                       CAMBRIDGE ISOTOPE LABORATORIES, INC.

                                       By: /s/ Joel C. Bradley
                                           -------------------------------------
                                           Joel C. Bradley
                                           President

                                       11
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                                                                       EXHIBIT A

                             PRODUCT SPECIFICATIONS

o  0-18 Water:                      Greater than 95% isotopic enrichment,
                                    normalized with respect to hydrogen. Less
                                    than 2% O-17 water.

o  Conductivity:                    Less than 30 umho/cm

o  pH:                              6.0-7.0

o  Ionic Purity:                    Ca, Br, C, Cu less than 5 mg/L.-Mg, Fe, F
                                    (as fluoride), I, less than 1 mg/L. -Na, C1,
                                    K less 10 mg/L.

o  Appearance:                      Clear, colorless, free of visible
                                    particulate matter.

o  Bioburden:                       Less than 100 CFU/gram.

o  Pyrogen:                         Minimum per LAL test.

o  Vial:                            10 gm, type 1 borosilicate glass vial, grey
                                    butyl rubber stopper, aluminum crimp seal.

o  Label:                           Product name, weight in grams, isotopic
                                    enrichment, manufacturer's name and lot,
                                    manufacturer's product number, date of
                                    manufacture.

o  Certificate of Analysis by lot number.

o  Letter of Compliance to Product specifications.

                                       12<PAGE>

                                                                   EXHIBIT 10.11

                                    CTI, INC.

                    1998 RESTATED INCENTIVE STOCK OPTION PLAN

         The Computer Technology & Imaging, Inc. 1984 Incentive Stock Option
Plan was adopted and approved by the shareholders and directors of Computer
Technology & Imaging, Inc. in 1984 to provide certain incentives for its
officers and key employees.

         In connection with the reorganization of Computer Technology & Imaging,
Inc. in April, 1987 (a) its name was changed to CTI PET Systems, Inc., (b)
shareholders of CTI PET Systems (formerly Computer Technology & Imaging, Inc.)
became shareholders of CTI Group, Inc., the parent corporation of CTI PET
Systems, Inc., (c) holders of options to acquire shares of CTI PET Systems, Inc.
exchanged those options for options to acquire shares of CTI Group, Inc. and (d)
the Computer Technology & Imaging, Inc. 1984 Incentive Stock Option Plan was
approved by the directors and shareholders of CTI Group, Inc. and assumed by CTI
Group, Inc.

         In connection with the further reorganization of CTI Group, Inc. and
its affiliates in January of 1988 (a) CTI, Inc. (the "Company") was formed, (b)
all of the holders of shares of CTI Group, Inc. (except Siemens Capital
Corporation) exchanged their shares of CTI Group, Inc. for shares of the
Corporation, (c) the holders of options to acquire shares of CTI Group, Inc.
exchanged those options for options to acquire shares of the Company, and (d)
the Computer Technology & Imaging, Inc. 1984 Incentive Stock Option Plan was
approved by the directors and shareholders of the Company and assumed by the
Company.

         Upon the approval of its directors and shareholders, the Company
amended the said Incentive Stock Option Plan to reflect changes in applicable
law since its initial adoption, and restated the said Plan, in 1991 by adopting
the CTI, Inc. Restated Incentive Stock Option Plan.

         This 1998 Restated Incentive Stock Option Plan is intended to amend,
restate and continue, as amended and restated, an incentive stock option plan
for the Company.

         1.       PURPOSE. The purpose of the CTI, Inc. 1998 Incentive Stock
Option Plan (the "Plan") is to offer an opportunity to the officers and key
employees of CTI, Inc. (the "Company") and its subsidiaries to participate in
the growth of the Company, thus stimulating their efforts on behalf of the
Company and strengthening their desire to remain with the Company or one of its
subsidiaries.

         2.       ADMINISTRATION. The plan will be administered by a Committee
of not less than three Directors of the Company, appointed by the Company's
Board of Directors (the "Committee"). The Committee is authorized to interpret
and administer the Plan, and its interpretations and decisions shall be final
and conclusive. Whether authorized leave of absence shall constitute termination
of employment for purposes of the Plan shall be determined by the Committee,
which determination shall also be final and conclusive. The Committee may, with
the consent of the optionee, make such modifications to an

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outstanding stock option as it, in its sole discretion, shall deem advisable. In
addition to the foregoing powers, the Committee shall have full power to grant
options that qualify as incentive stock options ("Incentive Stock Options")
under Section 422 of the Internal Revenue Code of 1986, as amended (the "Code"),
and options that do not so qualify.

         3.       SHARES SUBJECT TO THE PLAN. Options may be granted from time
to time to purchase shares of the $.01 par value Common Stock ("Common Stock")
of the Company not to exceed 2,000,000 shares in the aggregate (including
options granted under the prior incentive stock option plans referred to above).
These shares may be authorized but unissued or reacquired shares. If any option
is surrendered before exercise or for any reason ceases to be exercisable in
whole or in part, the shares allocated to the unexercised portion of such option
shall continue to be available under the Plan.

         4.       PARTICIPANTS. Options to purchase Common Stock of the Company
under this Plan may be granted only to executives and other key employees of the
Company and its subsidiaries (as such term is defined in Section 425 of the
Code), including officers and employees who are members of the Board of
Directors. Employment by the Company shall be deemed to include employment by a
subsidiary. From such eligible officers and key employees, the Committee shall
from time to time choose those to whom options shall be granted. In selecting
the individuals to whom options shall be granted, as well as determining the
number of shares subject to each option, the Committee shall consider the
positions and responsibilities of the employees being considered, the nature of
the services and accomplishments of each, the value to the Company or one of its
subsidiaries of their services, their present and potential contribution to the
success of the Company or one of its subsidiaries, the anticipated number of
years of service remaining, and such other factors as the Committee may deem
relevant.

         5.       TERM OF THE PLAN. The Plan will become effective and adopted
by the Company upon approval thereof by its Shareholders and its Board of
Directors. Incentive Stock Options may be granted hereunder at any time within
ten years from the date of approval by the Company's shareholders.

         6.       OPTION PRICE. The option price per share shall be determined
by the Committee from time to time, but in the case of options that are intended
to qualify as Incentive Stock Options under Section 422 of the Code, the price
shall not be less than the par value per share or one hundred percent (100%) of
the fair market value on the date an option is granted, whichever is greater.
The option price for an employee owning more than ten percent (10%) of the total
combined voting power of all classes of stock of the Company or of its parent or
subsidiary (as those terms are defined in Section 425 of the Code) shall be not
less than one hundred ten percent (110 %) of the fair market value on the date
an option is granted. Fair market value shall be determined by the Board of
Directors.

         7.       OPTION PERIOD. The term of each Incentive Stock Option shall
be fixed by the Committee, but in no event shall any Incentive Stock Option
permit the exercise thereof after the expiration of ten (10) years from the date
such option is granted. No Incentive Stock Option issued to any person at a time
when such person owns more than ten percent (10%) of the total combined voting
power of all classes of stock of the Company or of its

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parent or subsidiary corporations (as those terms are defined in Section 425 of
the Code) shall permit the exercise thereof after the expiration of five (5)
years from the date such option is granted. ,

         8.       MAXIMUM AMOUNT OF INCENTIVE STOCK OPTIONS. With respect to
options that are intended to qualify as Incentive Stock Options under Section
422 of the Code (i) granted by the Company under this Plan, or (ii) granted by a
subsidiary or parent corporation (as defined in Section 425 of the Code) under a
plan described in Code Section 422(b) after December 31, 1987 and subsequently
adopted by the Company, the aggregate fair market value (determined at the time
the option is granted) of the Common Stock with respect to which such Incentive
Stock Options are exercisable for the first time in any calendar year by any
individual shall not exceed one hundred thousand dollars ($100,000). With
respect to Incentive Stock Options that were issued under a plan described in
Code Section 422(b) by a parent or subsidiary corporation (as defined in Section
425 of the Code) prior to December 31, 1986, and subsequently adopted by the
Company, the immediately preceding sentence shall not apply.

         9.       STOCK OPTION AGREEMENT. Each stock option granted under this
Plan shall be offered to the employee in the form of a Stock Option Agreement
which the employee may accept by complying with the terms of the offer. Such
Stock Option Agreements shall contain the following and such other provisions as
the Committee may determine (which determinations need not be uniform as between
the various Stock Option Agreements):

                  a.       The number of shares to which the option relates, the
option price and the period within which the option may be exercised.

                  b.       A provision that the option and any related stock
appreciated rights are not transferable by the optionee to whom it is granted
otherwise than by will or the laws of descent and distribution; and a provision
that the option and any related stock appreciation rights are exercisable during
the lifetime of the employee only by him or his legal representative while he is
in the employ of the Company or within three months following termination of
employment.

                  c.       A provision that no option or stock appreciation
rights granted under the Plan may be exercised at any time after its term.
Subject to such limitation, every option shall be exercisable in full for all
shares not theretofore exercised (i) by the optionee within three months after
the date the optionee for any reason except death ceases to be an employee of
the Company, and (ii) by the person designated in the optionee's will for such
purpose or by the optionee's executor or administrator as circumstances provide
within twelve months from the date of the optionee's death, providing the
optionee dies while he is employed by the Company or dies within three months
after he ceases to be an employee. Subject to the limitation in the first
sentence of this Article 9(c), every stock appreciation right included under
Article 12 hereof shall be exercisable in full for all rights not theretofore
exercised (i) by the optionee within three months after the date the optionee
for any reason except death ceases to be an employee of the Company, and (ii) by
the person designated in the optionee's will for such purpose or by the
optionee's executor or administrator as circumstances provide within twelve
months from the date of the

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optionee's death providing the optionee dies while in the employ of the Company,
or dies within three months after he ceases to be an employee.

                  d.       A provision that the Company shall not be required to
issue or deliver any certificate for shares of its Common Stock purchased upon
the exercise of any part of an option granted under this Plan, including any
stock appreciation right, prior to the completion of any registration or other
qualification of such shares under any state or federal law or ruling or
regulation of any governmental regulatory body which the Company shall, in its
sole discretion, determine is necessary or advisable.

                  e.       A provision that if any person holding Common Stock
("Employee") at any time purposes to sell all or any portion of the Common
Stock, whether pursuant to this Plan or otherwise, then Employee shall so inform
the Corporation by notice in writing (the "Notice") stating the number of shares
that are the subject of such proposed sale (the "Offered Shares"), the identify
of the proposed purchaser, and other terms and conditions of such proposed sale,
including any consideration proposed to be received for the Offered Shares (and,
if the proposed sale is to be wholly or partly for a consideration other than
money, the Notice shall state the proposed price as being equal to the amount of
monetary consideration, if any, plus the fair market value of the other
consideration). The Notice shall constitute an irrevocable offer to sell the
Offered Shares to the Corporation at the same price and on the same terms and
conditions as offered by the prospective purchased named in the Notice. The
Corporation shall have thirty (30) days after receiving the Notice given by the
Employee within which to notify the Employee in writing of its election to
purchase all of the Offered Shares at the price and on the terms set forth in
the Notice. If the Corporation elects to purchase the Offered Shares, within
thirty (30) days after receiving notice of such election Employee shall deliver
to the Corporation, against receipt from the Corporation of the required
consideration therefor, a certificate or certificates representing the Offered
Shares to be purchased, duly endorsed by Employee or accompanied by duly
executed instruments necessary to transfer the Offered Shares. If the
Corporation elects not to purchase the Offered Shares within the thirty (30) day
period provided for hereinabove, then the Offered Shares not to be so purchased
by the Corporation may be disposed of by Employee to the prospective purchaser
named in the Notice, for a price and on terms and conditions not more favorable
to such purchaser than those set forth in the Notice, at any time within thirty
(30) days after the expiration for the Corporation to accept the offer contained
in the Notice. Any Offered Shares sold to such purchaser shall remain subject to
all the terms and conditions of this Plan, and in particular this Article 9 in
the hands of such purchaser and such purchaser shall, prior to the transfer of
the Offered Shares so purchased, acknowledge in writing agreement to be bound by
the terms and provisions hereof. Any Offered Shares not so disposed of within
such thirty (30) day period shall remain subject to all the terms any provisions
of this Plan, and in particular this Article 9. Employee agrees that each
certificate representing shares of the Stock owned by it, whether now owned or
hereafter acquired, whether pursuant to this Plan or otherwise, shall have
placed there on any legend deemed by the Corporation to be necessary or
desirable to restrict the transfer of such shares in accordance with the
provisions hereof.

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                  10.      EFFECT OF CHANGES IN COMMON STOCK OF THE COMPANY. In
the event of a change in the capitalization of the Company which is limited to a
change of all of its authorized shares with par value into the same number of
shares with a different par value or without par value, the shares resulting
from any such change shall be deemed to be Common Stock within the meaning of
the Plan.

         If the outstanding Common Stock of the Company is changed by any action
such as or similar to a declaration of a stock dividend or a split-up or
combination of shares, the maximum number of shares for which options may be
granted under this Plan, the number of shares reserved for future options, the
number of shares covered by options then outstanding and the option prices,
shall be appropriately adjusted.

         If the Company shall not be the surviving corporation in any merger,
reorganization, liquidation or consolidation, or if substantially all of the
property or more than 50% of the stock of the Company shall be acquired by
another corporation, the Board of Directors of the Company, or the board of
directors of any corporation assuming the obligations of the company hereunder,
shall either (i) make appropriate provision for protection of any outstanding
options by substitution on an equitable basis of appropriate stock of the
Company, or of the merged, consolidated or otherwise reorganized corporation
which will be issuable in respect to the shares of Common Stock of the Company,
or (ii) upon written notice to the employee provide that the option shall
terminate unless exercised within ninety (90) days of the date of such notice.
If an option is terminated pursuant to action by a board of directors under this
subsection, the optionee shall receive a cash payment equal to the different
between (i) the fair market value on the termination date of the shares subject
to the option and (ii) the option price of such shares. For purposes of the
foregoing, the termination date shall be a date specified in the notice from a
board of directors.

         In the event of any other recapitalization, reclassification,
reorganization or change of the Company's capital or business structure, the
Committee may in its discretion make an adjustment in the number and/or kind of
shares for which options may be granted under this Plan, the number and/or kind
of shares covered by options then outstanding and the option prices, and its
determination in that respect shall be final and conclusive.

         All adjustments provided for in this Article shall be made by the
Committee, whose determination in that respect shall be final.

         Except as provided in this Article 10, the optionee shall have no
rights by reason of any subdivision or consolidation of shares of stock of any
class or the payment of any stock dividend or any other increase or decrease in
the number of shares of stock of any class or by reason of any dissolution,
liquidation, merger, consolidation or reorganization. The existence of the Plan
or of options thereunder shall not prevent any of the above changes or
exchanges.

         11.      EXERCISE OF RIGHTS. No shares shall be issued until all
required payment therefor (including payment of all required taxes) has been
made. Granting of an option to

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an individual shall give such individual no rights as a stockholder except as to
shares issued to him.

         12.      STOCK APPRECIATION RIGHTS. At the sole discretion of the
Committee, stock appreciation rights may be included in any option granted under
this Plan, either concurrently with the grant of the option or, with the consent
of the optionee, at any time thereafter during the term of the option. Stock
appreciation rights shall entitle the holder thereof, upon exercise of such
rights, to surrender the related option, or any portion thereof, and to receive,
without payment to the Company, an amount, in cash or in property to which Code
Section 83 applies, equal to no more than 100% of the excess of the fair market
value, on the date of such exercise of the stock covered by such option or
portion thereof over the option price of such stock as provided in such option.
Said fair market value shall be determined by the Board of Directors. Upon
exercise of a stock appreciation right and surrender of the related option or
portion thereof, such option, to the extent surrendered, shall not thereafter be
exercisable, but all stock as to which the surrendered portion of the option
relates less the number of shares of stock issued under such stock appreciation
rights, if any, shall be available for future grants under the Plan.

         All stock appreciation rights issued hereunder shall:

                  a.       expire no later than the expiration of the related
Incentive Stock Option;

                  b.       be transferable only when the related Incentive Stock
Option is transferable, and under the same conditions;

                  c.       may be exercised only when the related Incentive
Stock Option is eligible to be exercised; and

                  d.       may be exercised only when the market price of the
Common Stock subject to the related Incentive Stock Option exceeds the exercise
price of such Incentive Stock Option.

         The Committee may impose such other conditions upon the grant or
exercise of stock appreciation rights as it deems advisable, including but not
limited to, such conditions relative to officers and directors of the Company,
that may be desirable in order to meet the requirements of the Securities Act of
1933, the Securities Exchange Act of 1934 and rules and regulations promulgated
thereunder, and any other applicable securities laws, rules and regulations.

         The Committee shall have sole discretion, at the time of the grant of
the stock appreciation right, to determine the form in which payment will be
made upon the exercise of any stock appreciation right (i.e., Common Stock,
cash, or any combination thereof), and may reserve to itself, at the time of the
grant, the right to consent to or disapprove the election of any participant to
receive cash in full or partial settlement of the right at the time of exercise
of the right.

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         13.      AMENDMENT OF PLAN. The Plan may be terminated at any time by
the Board of Directors of the Company, except with respect to any options then
outstanding under the Plan. The Board of Directors may make such modifications
of the Plan as it shall deem advisable, but may not, without approval of the
stockholders of the Company, (a) increase the maximum number of shares as to
which options may be granted under the Plan (other than as provided in Article
10 above), or (b) extend the period during which options may be granted or
exercised, or (c) extend the date within which options may be granted under this
Plan, or (d) withdraw the administration of the Plan from a committee of
directors of the Company, or (e) change the class of employee eligible to
receive options.

         Duly adopted by the Board of Directors of the Company on May 19, 1998,
and by the shareholders of the Company on May 19, 1998.

                                       CTI, INC.

                                       By: /s/ Terry D. Douglass
                                          -------------------------------------
                                           Terry D. Douglass

                                       Attest:

                                       By: /s/ J. Kelly Milam
                                          -------------------------------------
                                           J. Kelly Milam
                                           Secretary

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