Document:

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Exhibit 10.12

         THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933,
         AS AMENDED. IT MAY NOT BE TRANSFERRED, RESOLD, HYPOTHECATED OR
         OTHERWISE DISPOSED OF UNLESS IT HAS BEEN REGISTERED UNDER THAT ACT OR
         AN EXEMPTION FROM REGISTRATION IS AVAILABLE.

                             TELENETICS CORPORATION

         7% Subordinated Unsecured Promissory Note due January 15, 2004

$148,200                                                 Lake Forest, California
                                                                   July 15, 2002

         FOR VALUE RECEIVED, the undersigned, Telenetics Corporation, a
California corporation (the "Company"), hereby promises to pay to Terry S.
Parker, or registered assigns, the principal sum of One Hundred Forty-Eight
Thousand Dollars ($148,200), with interest on the unpaid principal amount hereof
computed on the basis of the actual number of days elapsed, at the interest rate
and on the payment dates described below.

         1. PAYMENTS. Principal and accrued interest on this note ("Note") shall
be payable in eighteen (18) monthly installments commencing on August 15, 2002
and continuing on the fifteenth (15th) day of each month thereafter, with each
of the first seventeen (17) monthly payments to represent at least Seven
Thousand Eight Hundred Dollars ($7,800) in principal amount plus accrued
interest for the previous month ("Minimum Monthly Installment"), and the final
payment to be in the amount of the unpaid principal balance plus all accrued and
unpaid interest and any other amounts then payable under this Note ("Final
Payment"). All payments of principal of and interest on this Note shall be
mailed to an address that the holder, at least five (5) business days prior to a
payment due date, designates in writing to the Company, and shall be in such
coin or currency of the United States of America as at the time of payment shall
be legal tender for payment of public and private debts. Payments shall be
applied first against accrued interest and then against outstanding principal
and any other amounts payable under this Note. Interest on the unpaid principal
portion of this Note will accrue at a rate of Seven Percent (7%) per annum and
is payable monthly in arrears; PROVIDED, HOWEVER, that if a Minimum Monthly
Installment for any month ("Month") is not paid by its due date, then interest
on the unpaid principal portion of this Note will accrue at a rate of Ten
Percent (10%) per annum until such Minimum Monthly Installment is paid. If at
any time three such Minimum Monthly Installments shall be due and unpaid, then
this Note shall immediately become due.

         2. CERTAIN DEFINITIONS. For purposes of this Note, the following terms
shall have the following respective meanings:

                  "INSOLVENCY OR LIQUIDATION PROCEEDING" shall mean (i) any
insolvency or bankruptcy case or proceeding, or any receivership, liquidation,
reorganization or other similar case or proceeding, relative to the Company or
to its creditors, as such, or to its assets, or (ii) any liquidation,
dissolution, reorganization or winding up of the Company, whether voluntary or
involuntary and whether or not involving insolvency or bankruptcy, or (iii) any
assignment for the benefit of creditors or any other marshaling of assets and
liabilities of the Company.

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                  "REORGANIZATION SECURITIES" shall mean shares of stock of the
Company, or its successor, as reorganized, or other securities of the Company or
any other person provided for by a plan of reorganization, the payment of which
is subordinated, at least to the same extent as this Note, to the payment of all
Senior Indebtedness which may at the time be outstanding and the principal of
which is due no earlier than the principal of this Note, provided that the
rights of the holders of the Senior Indebtedness are not impaired thereby or
such holders as a class shall have approved such plan of reorganization.

                  "REPRESENTATIVE" shall mean the trustee, agent or other
representative for holders of all or any of the Senior Indebtedness, if any,
designated in the indenture, agreement or other document creating, evidencing or
governing such Senior Indebtedness or pursuant to which it was issued, or
otherwise duly designated by the holders of such Senior Indebtedness.

                  "SENIOR INDEBTEDNESS" shall mean the principal of and unpaid
interest on all indebtedness of the Company regardless of whether incurred on,
before or after the date of this Note (i) for money borrowed from any bank,
savings and loan or other financial institution; (ii) for money borrowed from
any institutional investor which lends money to the Company in a transaction
involving the Company's investment bankers, (iii) for money borrowed in a
transaction in which the debt is secured by the Company's assets and (iv) in
connection with any renewals or extensions of any indebtedness described in (i)
through (iii) above; PROVIDED, HOWEVER, that the term shall not include (a) any
lease financing arrangement involving the Company and (b) indebtedness which by
the terms of the instrument creating or evidencing it is subordinated to or on a
parity with this Note.

     3. SUBORDINATION.

         3.1 SUBORDINATED NOTES SUBORDINATE TO SENIOR INDEBTEDNESS. The
provisions of this Section 3 apply notwithstanding anything to the contrary
contained in this Note. The Company covenants and agrees, and the holder of this
Note, by such holder's acceptance hereof, likewise covenants and agrees, that,
to the extent and in the manner hereinafter set forth in this Section 3, the
indebtedness represented by this Note and the payment of the principal of and
interest on this Note are hereby expressly made subordinate and subject in right
of the prior payment in full of all Senior Indebtedness. This Section 3
constitutes a continuing offer to all persons who become holders of, or continue
to hold, Senior Indebtedness, each of whom is an obligee hereunder and is
entitled to enforce such holder's rights hereunder, subject to the provisions
hereof, without any act or notice of acceptance hereof or reliance hereon.

         3.2 PAYMENT OVER OF PROCEEDS UPON DISSOLUTION, ETC.

                  (a) In the event of any Insolvency or Liquidation Proceeding,
all Senior Indebtedness shall first be paid in full before the holder of this
Note is entitled to receive any direct or indirect payment or distribution of
any cash, property or securities (excluding Reorganization Securities) on
account of the principal of or interest on this Note.

                                      -2-

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                  (b) The holders of Senior Indebtedness (or their respective
Representatives) shall be entitled to receive directly, for application to the
payment thereof (to the extent necessary to pay all such Senior Indebtedness in
full after giving effect to any substantially concurrent payment or distribution
to the holders of such Senior Indebtedness), any payment or distribution of any
kind or character, whether in cash, property or securities (excluding
Reorganization Securities but including any payment or distribution, except
Reorganization Securities, which may be payable or deliverable by reason of the
payment of any other indebtedness of the Company being subordinated to the
payment of this Note) which may be payable or deliverable in respect of this
Note in any such Insolvency or Liquidation Proceeding.

                  (c) In the event that, notwithstanding the foregoing
provisions of this Section 3.2, the holder of this Note shall have received any
payment from or distribution of assets of the Company in an Insolvency or
Liquidation Proceeding or the estate created by the commencement of any such
Insolvency or Liquidation Proceeding, of any kind or character in respect of
this Note whether in cash, property or securities (excluding Reorganization
Securities but including any payment or distribution, except Reorganization
Securities, which may be payable or deliverable by reason of the payment of any
other indebtedness of the Company being subordinated to the payment of this
Note) before all Senior Indebtedness is paid in full, then and in such event
such payment or distribution shall be received and held in trust for and shall
be paid over to the holders of the Senior Indebtedness remaining unpaid (or
their respective Representatives), to the extent necessary to pay all such
Senior Indebtedness in full after giving effect to any substantially concurrent
payment or distribution to the holders of such Senior Indebtedness, for
application to the payment in full of such Senior Indebtedness.

         3.3 DEFAULT ON SENIOR INDEBTEDNESS.

                  (a) If there exists a default in the payment when due (whether
at maturity or upon acceleration or mandatory repayment, or on any principal
installment payment date or interest payment date, or otherwise) of any Senior
Indebtedness (a "Payment Default") and such default shall not have been cured or
waived in writing by or on behalf of the requisite percentage of the holders of
such Senior Indebtedness (or their Representative, if any), then any payment on
account of principal of or interest on this Note which the holder of this Note
would then be entitled to receive, but for the provisions of this paragraph
3.3(a), shall instead be paid over to the holders of such Senior Indebtedness
(or their Representative, if any) until all amounts of Senior Indebtedness then
due and payable have been paid in full, prior to any direct or indirect payment
by or on behalf of the Company to the holder of any principal of or interest on
this Note.

                  (b) The Company may not, directly or indirectly, make, and the
holder of this Note may not ask, demand, take or receive from or on behalf of
the Company, any payment on account of the principal of or interest on this Note
during the period (a "Deferral Period") from the date the Company and/or the
holder of this Note receive from a holder of Senior Indebtedness a notice (a
"Deferral Notice") of:

                           (i) the existence of a Payment Default; or

                           (ii) the existence of any event of default (other
than a Payment Default) under any agreement or instrument pursuant to which any
Senior Indebtedness is issued, in each instance as now in effect or as hereafter
from time to time modified or amended, without the necessity of any consent by
or notice to the holder of this Note (a "Specified Covenant Default");

                                      -3-

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until the earlier of (i) the date such Payment Default or Specified Covenant
Default is cured, waived in writing or otherwise ceases to exist and (ii) the
180th day after receipt by the Company and/or by the holder of this Note of such
Deferral Notice; PROVIDED, HOWEVER, that (x) only one Deferral Notice relating
to the same Payment Default or Specified Covenant Default may be given, (y) no
subsequent Deferral Notice may be given with respect to any Payment Default or
Specified Covenant Default existing at the time an effective Deferral Notice is
given and (z) if any such Deferral Notice has been given, no subsequent Deferral
Notice with respect to any number of different Payment Defaults or Specified
Covenant Defaults shall be effective until the later of (1) the date such
subsequent Deferral Notice is received by the Company and the holder of this
Note and (2) the 365th day after receipt of the then most recent prior effective
Deferral Notice. So long as any Senior Indebtedness is outstanding, the holder
of this Note shall give the holders of the Senior Indebtedness five (5) business
days' prior written notice of any proposed demand for payment or institution of
proceedings with respect to this Note (which notice may be given during a
Deferral Period provided that the proposed demand for payment is not to be made
or the proposed proceedings are not to be instituted until the expiration of
such Deferral Period).

                  (c) Upon termination of any Deferral Period, the Company shall
resume payments on account of the principal of and interest on this Note subject
to the obligation of the Company and the holder of this Note to pay over to the
holders of Senior Indebtedness amounts otherwise payable on account of the
principal of and interest on this Note pursuant to the provisions of, and in the
circumstances specified in, this Section 3.

                  (d) During the first one hundred twenty (120) days of any
Deferral Period, payment on account of this Note may not be accelerated unless a
voluntary Insolvency or Liquidation Proceeding shall be instituted by the
Company or an involuntary Insolvency or Liquidation Proceeding shall be
instituted against the Company and remain undismissed for a period of sixty (60)
days. So long as any Senior Indebtedness is outstanding, the holder of this Note
shall give the holders of the Senior Indebtedness five (5) business days' prior
written notice of any proposed acceleration with respect to this Note (which
notice may be given during a Deferral Period provided that the proposed
acceleration is not to be effective until the expiration of such Deferral
Period).

                  (e) In the event that, notwithstanding the foregoing
provisions of this Section 3.3, any payment shall be made by or on behalf of the
Company and received by the holder of this Note at a time after the giving of a
Deferral Notice and during a Deferral Period, then such payment shall be held in
trust for the benefit of and shall be immediately paid over to the holders of
Senior Indebtedness remaining unpaid or their respective Representatives, for
application to the payment in full of all Senior Indebtedness in accordance with
its terms (after giving effect to any prior or substantially concurrent payment
to the holders of such Senior Indebtedness).

                                      -4-

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         3.4 SUBROGATION TO RIGHTS OF HOLDERS OF SENIOR INDEBTEDNESS. After all
amounts payable under or in respect of Senior Indebtedness are paid in full, the
holder of this Note shall be subrogated to the extent of the payments or
distributions made to the holders of, or otherwise applied to payment of, such
Senior Indebtedness pursuant to the provisions of this Section 3 (equally and
ratably with the holders of all indebtedness of the Company which by its express
terms is subordinate and subject in right of payment to Senior Indebtedness to
substantially the same extent as this Note is so subordinate and subject in
right of payment and which is entitled to like rights of subrogation), to the
rights of the holders of such Senior Indebtedness (or their respective
Representatives) to receive payments and distributions of cash, property and
securities applicable to the Senior Indebtedness until the principal of and
interest on this Note shall be paid in full. For purposes of such subrogation,
no payments or distributions to the holders of the Senior Indebtedness (or their
respective Representatives) of any cash, property or securities to which the
holder of this Note would be entitled except for the provisions of this Section
3, and no payments over pursuant to the provisions of this Section 3 to the
holders of Senior Indebtedness (or their respective Representatives) by the
Company or the holder of this Note shall, as among the Company and its creditors
(other than holders of Senior Indebtedness and the holder of this Note), be
deemed to be a payment or distribution by the Company to or on account of Senior
Indebtedness, it being understood that the provisions of this Section 3 are
solely for the purpose of defining the relative rights of the holders of Senior
Indebtedness on the one hand and the holder of this Note on the other hand.

                  If any payment or distribution to which the holder of this
Note would otherwise have been entitled but for the provisions of this Section 3
shall have been applied, pursuant to the provisions of this Section 3, to the
payment of all amounts payable under the Senior Indebtedness, then and in such
case, the holder of this Note shall be entitled to receive (equally and ratably
with the holders of all indebtedness of the Company which by its express terms
is subordinate and subject in right of payment to Senior Indebtedness to
substantially the same extent as this Note is subordinate and subject in right
of payment and which is entitled to like rights) from the holders of such Senior
Indebtedness (or their respective Representatives) any substantially
contemporaneous payments or distributions received by such holders of Senior
Indebtedness (or their respective Representatives) in excess of the amount
sufficient to pay in full all obligations payable under or in respect of such
Senior Indebtedness.

         3.5 RIGHTS OF HOLDERS NOT TO BE IMPAIRED. Nothing contained in this
Section 3 or elsewhere in this Note is intended to or shall:

                  (a) impair, as among the Company, its creditors other than
holders of Senior Indebtedness and the holder of this Note, the obligation of
the Company, which is absolute and unconditional, to pay to the holder of this
Note the principal of and interest on this Note as and when the same shall
become due and payable in accordance with their terms; or

                  (b) affect the relative rights against the Company of the
holder of this Note and creditors of the Company other than the holders of
Senior Indebtedness; or

                  (c) prevent the holder of this Note from exercising all
remedies otherwise permitted by applicable law upon default subject to the
rights, if any, under this Section 3 of the holders of Senior Indebtedness to
receive payments or distributions otherwise payable or deliverable to, or
received by, such holder upon the exercise of any such remedy and subject to the
restriction on acceleration set forth in paragraph 3.3(d).

                                      -5-

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         3.6 EFFECTUATION OF SUBORDINATION. If the holder of this Note does not
file a proper claim or proof of debt in the form required in any Insolvency or
Liquidation Proceeding prior to 30 days before the expiration of the time to
file such claims or proofs, then the holders of the Senior Indebtedness, or
their Representatives, are hereby authorized, and shall have the right (without
any duty), to file an appropriate claim for and on behalf of such holder.

         3.7 NO WAIVER OF SUBORDINATION PROVISIONS. No right of any present or
future holder of any Senior Indebtedness, or Representative thereof, to enforce
subordination as herein provided shall at any time in any way be prejudiced or
impaired by any act or failure to act on the part of the Company or by any act
or failure to act by any such holder or Representative thereof, or by any
noncompliance by the Company with the terms, provisions and covenants of this
Note regardless of any knowledge thereof which any such holder or Representative
thereof may have or be otherwise charged with.

         Without in any way limiting the generality of the foregoing paragraph,
the holders of Senior Indebtedness (or their Representatives, if applicable)
may, at any time and from time to time, without the consent of or notice to the
holder of this Note, without incurring responsibility to the holder of this Note
and without impairing or releasing the subordination and other benefits provided
in this Section 3 or the obligations hereunder of the holder of this Note to the
holders of Senior Indebtedness, do any one or more of the following all without
notice to the holder of this Note and even if any right of reimbursement or
subrogation or other right or remedy of the holder of this Note is affected,
impaired or extinguished thereby:

                  (a) change the manner, place or terms of payment or change or
extend the time of payment of, or renew, exchange, amend or alter, the terms of
any Senior Indebtedness, any security therefor or guaranty thereof or any
liability of the Company or any guarantor to such holder, or any liability
incurred directly or indirectly in respect thereof, or otherwise amend, renew,
exchange, modify or supplement in any manner Senior Indebtedness or any
instrument evidencing or guaranteeing or securing the same or any agreement
under which Senior Indebtedness is outstanding;

                  (b) sell, exchange, release, surrender, realize upon, enforce
or otherwise deal with in any manner and any order any property pledged,
mortgaged or otherwise securing Senior Indebtedness or any liability of the
Company or any guarantor to such holder, or any liability incurred directly or
indirectly in respect thereof;

                  (c) settle or compromise any Senior Indebtedness or any other
liability of the Company or any guarantor of the Senior Indebtedness to such
holder or any security therefor or any liability incurred directly or indirectly
in respect thereof and apply any sums by whomsoever paid and however realized to
any liability (including, without limitation, Senior Indebtedness) in any manner
or order; and

                  (d) fail to take or to record or otherwise perfect, for any
reason or for no reason, any lien or security interest securing Senior
Indebtedness by whomsoever granted, exercise or delay in or refrain from
exercising any right or remedy against the Company or any security or any
guarantor or any other person, elect any remedy and otherwise deal freely with
the Company and any security and any guarantor of the Senior Indebtedness or any
liability of the Company or any guarantor to such holder or any liability
incurred directly or indirectly in respect thereof.

                                      -6-

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         3.8 RELIANCE ON COURT ORDERS; EVIDENCE OF STATUS. Upon any payment or
distribution of assets of the Company referred to in Section 3.2, the holder of
this Note shall be entitled to rely upon a certificate of the receiver, trustee
in bankruptcy, liquidating trustee, agent or other person making such payment or
distribution delivered to the holder of this Note for the purpose of
ascertaining the persons entitled to participate in such payment or
distribution, the holders of Senior Indebtedness and other indebtedness of the
Company, the amount thereof or payable thereon, the amount or amounts paid or
distributed thereon and all other facts pertinent thereto or to this Section 3.

         In the absence of any such receiver, trustee in bankruptcy, liquidating
trustee, agent or other person, the holder of this Note shall be entitled to
rely upon a written notice by a person representing himself to be a holder of
Senior Indebtedness (or a Representative on behalf of such holder) as evidence
that such person is a holder of Senior Indebtedness (or is such a
Representative) for any relevant purpose. In the event that any holder
determines in good faith that further evidence is required with respect to the
right of any person as a holder of Senior Indebtedness (or such a
Representative), as to the extent to which such person is entitled to
participate in such payment or distribution, and as to other facts pertinent to
the rights of such person under this Section 3, such holder may request such
person to furnish evidence to the reasonable satisfaction of such holder as to
the amount of Senior Indebtedness held by such person, the extent to which such
person is entitled to participate in such payment or distribution and any other
facts pertinent to the rights of such person under this Section 3, and if such
evidence is not furnished such holder may defer (without liability to any holder
of Senior Indebtedness or any Representative of such holder) any payment to such
person pending judicial determination as to the right of such person to receive
such payment or until such time as such holder shall be otherwise satisfied as
to the right of such person to receive such payment.

         3.9 NOT TO PREVENT EVENTS OF DEFAULT. The failure to make a payment on
account of the principal of or interest on this Note by reason of any provision
of this Section 3 shall not be construed as preventing the occurrence of a
default or an Event of Default under this Note. Except as expressly provided in
paragraph 3.3(d), nothing in this Section 3 shall affect the rights of the
holder of this Note to accelerate the maturity of this Note in accordance with
its terms.

         3.10 AMENDMENTS. Without the prior written consent of the holders of
the Senior Indebtedness, the Company and the holder of this Note shall not (i)
amend, supplement or otherwise modify any provision of this Section 3, (ii)
accelerate the payment of the principal of or interest on this Note or (iii) if
such amendment would have a material adverse effect on the holders of the Senior
Indebtedness, amend, supplement or otherwise modify any other provision of this
Note.

                                      -7-

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     4. DEFAULT.

         4.1 EVENTS OF DEFAULT. If any of the following events (herein called
"Events of Default") shall occur:

                  (a) the Company shall fail to make the Final Payment on or
prior to January 15, 2004;

                  (b) the Company shall breach or default in the performance of
any covenant or warranty of the Company in this Note, and continuance of such
breach for a period of thirty (30) days after there has been given, by
registered or certified mail, to the Company by the holder of this Note, a
written notice specifying such breach or default and requiring it to be
remedied;

                  (c) the Company shall default (as principal or guarantor or
other surety) either in the payment of the principal of, or premium, if any, or
interest on any indebtedness for borrowed money other than this Note or any
similarly subordinated notes) or with respect to any of the provisions of any
evidence of indebtedness for borrowed money (other than this Note or any
similarly subordinated notes) or which represents a purchase money obligation,
which indebtedness shall be in an amount equal to or greater than $250,000, or
any agreement relating to either thereof, and the effect of such default is to
accelerate the maturity of such indebtedness or the holder thereof shall cause
such indebtedness to become due prior to the stated maturity thereof, or the
Company shall not pay such indebtedness at maturity;

                  (d) a court having jurisdiction in the premises shall enter a
decree or order for relief in respect of the Company in an involuntary case
under any applicable bankruptcy, insolvency or other similar law now or
hereafter in effect, or appointing a receiver, liquidator, assignee, custodian,
trustee, sequestrator (or similar official) of the Company or for any
substantial part of its property, or ordering the winding-up or liquidation of
its affairs, and such decree or order shall remain unstayed and in effect for a
period of sixty (60) consecutive days; or

                  (e) the Company shall commence a voluntary case under any
applicable bankruptcy, insolvency or other similar law now or hereafter in
effect, shall consent to the entry of an order for relief in an involuntary case
under any such law, or shall consent to the appointment of or taking possession
by a receiver, liquidator, assignee, trustee, custodian, sequestrator (or other
similar official) of the Company or for any substantial part of its property, or
shall make any general assignment for the benefit of creditors, or shall fail
generally to pay its debts as they become due, or shall take any corporate
action in furtherance of any of the foregoing;

then and in any such event the holder of this Note may at any time (unless all
defaults theretofore or thereupon shall have been remedied) at its option, by
written notice to the Company, declare this Note to be due and payable,
whereupon the same shall forthwith mature and become due and payable without
presentment, demand, protest or other notice, all of which are hereby waived.

                                      -8-

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         4.2 REMEDIES ON AND NOTICES OF DEFAULT. Subject to the provisions of
Section 3, in case any one or more Events of Default shall occur, the holder of
this Note may proceed to protect and enforce the rights of such holder by a suit
in equity, action at law or other appropriate proceeding, whether for the
specific performance of any agreement contained in this Note, or for an
injunction against a violation of any of the terms or provisions hereof or
thereof, or in aid of the exercise of any power granted hereby or thereby or by
law. In case of a default under this Note, the Company will pay to the holder of
this Note such further amount as shall be sufficient to cover the reasonable
cost and expense of enforcement, including, without limitation, reasonable
attorneys' fees. If the holder of this Note shall give any notice or take any
other action in respect of a claimed default, the Company shall forthwith give
written notice thereof to all other holders of similarly subordinated notes at
the time outstanding, describing the notice or action and the nature of the
claimed default. No course of dealing and no delay on the part of any holder of
this Note in exercising any right shall operate as a waiver thereof or otherwise
prejudice such holder's rights or the rights of the holder of any similarly
subordinated notes. No remedy conferred by this Note upon the holder shall be
exclusive of any other remedy referred to herein or now or hereafter available
at law, in equity, by statute or otherwise.

     5. COVENANTS.

                  (a) The Company will duly and punctually pay the principal of
and interest on this Note in accordance with the terms of this Note. There shall
be no prepayment penalty on this Note.

                  (b) During the period that this Note remains outstanding the
Company shall not pay or set aside any amounts as dividends on its Common Stock,
or redeem or repurchase any of its Common Stock, or effect any recapitalization
which results in any payment of cash, notes or other debt instruments for the
Company's Common Stock.

                  (c) The Company (or any successor by merger, consolidation or
otherwise) will do or cause to be done all things necessary to preserve and keep
in full force and effect its corporate existence and franchises; PROVIDED,
HOWEVER, that the Company shall not be required to preserve any right or
franchise if the Board of Directors of the Company shall determine that the
preservation thereof is no longer desirable in the conduct of the business of
the Company and that the loss thereof is not disadvantageous in any material
respect to the holder of this Note.

     6. MISCELLANEOUS.

                  (a) This Note shall be governed by and construed in accordance
with the laws of the State of California, without regard to choice of law
principles. If any one or more of the provisions contained in this Note shall
for any reason be found by a court of competent jurisdiction to be invalid,
illegal or unenforceable in any respect, the parties agree that such court may
modify such provision to the extent necessary to make it valid, legal and
enforceable. In any event, such provision shall be separable and shall not limit
or affect the validity, legality or enforceability of any other provision
hereunder.

                                      -9-

<PAGE>

                  (b) If this Note is collected by law or through an attorney
for collection or enforcement, the holder hereof shall be entitled to collect
reasonable attorneys' fees and all costs of collection from the Company. The
Company hereby waives presentment for payment, notice of nonpayment, protest and
notice of protest.

                  (c) Unless otherwise specifically stated herein, all notices,
demands, payments or other communications to be given or delivered pursuant to
this Note shall be in writing and shall be given to the Company at its principal
executive offices and to the holder of this Note at the holder's last known
address as shown in the records of the Company.

                  (d) The terms of this Note shall bind the Company and the
holder of this Note and their respective successors and assigns.

         IN WITNESS WHEREOF, the Company has executed and delivered this Note as
of the date first written above.

                                                   TELENETICS CORPORATION

                                                   By: /s/ David L. Stone
                                                       -------------------------
                                                       David L. Stone, President

                                      -10-<PAGE>

                        CONFIDENTIAL TREATMENT REQUESTED

Where the text of this document has been redacted, it has been marked
"Confidential Treatment Requested." Such redacted portion has been filed
separately with the Securities and Exchange Commission pursuant to Rule 24b-2
promulgated under the Securities Exchange Act of 1934, as amended.

<PAGE>

                                                                   Exhibit 10.15

     THIS AGREEMENT made in duplicate as of this 9th day of August, 2000.

BETWEEN:

                      MDS NORDION INC.
                      having a place of business at
                      447 March Road, Kanata
                      Ontario, Canada
                                                  ("Nordion")

AND:

                      BOSTON LIFE SCIENCES, INC.
                      having a place of business at
                      137 Newbury Street, 8th Floor
                      Boston Massachusetts, 02116 USA

                                                  ("BLSI")

WHEREAS:

I.   BLSI is the owner or licensee of a certain compound known as Altropane(tm),
     an imaging diagnostic agent for Parkinson's disease;

II.  Nordion has expertise in the  development of pharmaceutical processes and
     radiolabelling of compounds;

III. BLSI has developed techniques and demonstrated an ability to label
     Precursor with 1-123 to form Altropane;

IV.  BLSI desires that Nordion undertake a development program based upon BLSI's
     technique at its facility, which will allow BLSI's Precursor to be labeled
     with 1-123 to form Altropane;

V.   BLSI desires that Nordion establish a facility at its site in Vancouver,
     British Columbia, to supply Altropane for use in support of BLSI's drug
     submission to the FDA.

<PAGE>

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

                            ARTICLE 1 - DEFINITIONS

For the purposes of this Agreement:

1.1   "Affiliate" shall mean an entity or person which controls, is
      controlled by or is under common control with either party. For purposes
      of this Section 1.1 control shall mean (a) in the case of corporate
      entities, the direct or indirect ownership of more than one-half of the
      stock or participating shares entitled to vote for the election of
      directors, and (b) in the case of a partnership, the power to direct the
      management and policies of such partnership.

1.2   "Altropane" shall mean a pharmaceutical product containing 1-123 labeled
      Precursor in diagnostic dosage form, for use in the diagnosis of
      Parkinson's disease and other disorders.

1.3   "Background Technology" shall mean all Nordion proprietary technology,
      including patents, copyright, know-how, techniques, methods, processes
      and trade secrets which Nordion owns or which is licensed to Nordion and
      which is in existence in the form of a writing, prototype or can otherwise
      be demonstrated to be the property of Nordion prior to the  Effective
      Date. 1.4

1.4   "Batch" shall mean a production batch of Altropane manufactured under
      this Agreement.

<PAGE>

1.5   "Clinical Trials" shall mean Phase III human trials for clinical
      development of Altropane in the United States.

1.6   "Commercial Phase" shall mean the period of supply of Altropane commencing
      after NDA regulatory approval has been received in the United States by
      BLSI, from the FDA.

1.7   "Current Good Manufacturing Practices" or "cGMP(s)" shall mean the good
      manufacturing practices required by the FDA and set forth in the FD&C
      or FDA regulations for the manufacturing, testing and quality control
      of pharmaceutical materials as applied to compounds current on the
      Effective Date of this Agreement.

1.8   "Development Phase" shall mean the period commencing from the Effective
      Date until completion of the activities described in Schedule A.

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

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

1.11  "FD&C" shall mean the United States Federal Food, Drug and Cosmetic Act,
      as amended.

1.12  "Facility" shall mean the facility to be established by Nordion at
      its manufacturing site in Vancouver, British Columbia as described in
      Schedule B, to be used for the production of Altropane for application
      in diagnostic purposes.

1.13  "IND" shall mean an Investigational New Drug Application as defined
      by the regulations promulgated under the United States FD&C Act and
      Public

<PAGE>

Health Service Act and any supplements there under, as amended from time to
time.

1.14  "Isotope" or "1-123" shall mean Iodine 123.

1.15  "Master Validation Plan" shall mean the program mutually agreed to
       by the parties by which documented evidence provides assurance that the
       Process will consistently produce Altropane that meets Specifications.

1.16  "Maximum Batch Size" shall have the meaning attributed in section 4.1.

1.17  "Moveable Equipment" shall mean the equipment identified in Schedule
      C and such other equipment as supplied by BLSI to Nordion.

1.18  "NDA" shall mean a new drug application as defined regulations
      promulgated under the United States FD&C and Public Health Service Act,
      as amended from time to time.

1.19  "Precursor" shall mean cGMP compliant
      2p-Carbomethoxy-3p-(4-fluorophenyl)-n-(1 iodoprop-l-en-3-yl)
      nortropane as specified in Schedule D.

1.20  "Process" shall mean the method of formulation, dispensing, and testing
      of the Altropane developed under this Agreement.

1.21  "Reference Standards" shall mean the cGMP compliant compounds as
      specified in Schedule F.

1.22  "Specifications" shall mean those final specifications for Altropane
      as set out in Schedule F, as amended by mutual agreement of the
      parties from time to time.

<PAGE>

                              ARTICLE 2 - PURPOSE
                              -------------------

2.1  Scope and Object
---------------------

The scope and object of this Agreement is to carry out the development of the
process in accordance with the development responsibilities and obligations
attributed to each of the parties as set out in this Agreement. In addition,
this Agreement shall provide for the establishment of a Facility at Nordion's
site in Vancouver, British Columbia for the supply of Altropane as required in
support of BLSI's Altropane NDA submission to the FDA.

                          ARTICLE 3 - DEVELOPMENT PHASE
                          -----------------------------

3.1  Development Activities
---------------------------

During the Development Phase, Nordion and BLSI shall respectively carry out
their obligations described and attributed in Schedule A, it being understood
that some activities may be reasonably delayed to the extent that such activity
is premised on the work or provision of data, information or technology by the
other party. It is understood and acknowledged that due to the developmental
nature of the activities to be carried out during the Development Phase, the
time for completion and sequence for carrying out the activities as set out in
Schedule A shall serve as a guide. Each party shall use their commercially
reasonable best efforts in order to carry out their respective obligations and
responsibilities set out in Schedule A.

If either party acting in good faith materially fails to satisfy any milestone
or is unable to meet such milestone in accordance with the timing set out in
Schedule A, such party shall provide written notice thereof to the other party
and the

<PAGE>

parties shall determine a reasonable corrective action plan and revised
milestone schedule.

The parties acknowledge and agree that Schedule A may be amended during the
course of the Development Phase to accommodate unforeseen events and results.
All such changes to Schedule A shall be made by written agreement of the
parties. Any changes to Schedule A, impacting the scope of work will be
estimated by Nordion, approved in advance by BLSI, and provided at the rates as
set out in section 6.3.

The parties, upon signing this Agreement, shall each designate a program
manager, who shall be responsible for coordinating communication and monitoring
performance under this Agreement. The program managers shall meet monthly, at
locations to be agreed or by telephone, for the purpose of reviewing the status
of the project and to assess progress against the milestones and activities set
forth in Schedule A and for the purposes of determination of percentage of
milestone completed and payments earned under each milestone. Minutes of
meetings shall be prepared, maintained and provided to each of the parties. In
the event of a scope change beyond the services and activities contemplated and
agreed to by the parties as set out in Schedule A prior to commencing such
activities, Nordion shall provide to BLSI a written estimate of any associated
incremental costs. No work on such scope change shall be carried out by Nordion
prior to receipt of BLSI's written approval of such change.

3.2  Development Phase Work
---------------------------

In consideration of Nordion performing the Development Phase services, BLSI
shall pay Nordion in accordance with the rates set out in Schedule G, which
shall include the supply of Altropane for the purpose of producing two (2)
Batches for an equivalency study, as set out in Section 4.1. All amounts due
Nordion shall be paid by BLSI within thirty (30) days of the date appearing on
Nordion's

<PAGE>

invoice. Such invoice shall, unless otherwise agreed, be payable in United
States dollars. Ownership of Moveable Equipment, shall remain the property of
BLSI and shall be returned to BLSI upon termination or expiry of this
Agreement. The cost of return and shipment of such Moveable Equipment shall be
to BLSI's account. BLSI acknowledges that some equipment may have radioactive
contamination and may not be returnable to BLSI until the contamination has
been reduced to acceptable limits in accordance with applicable regulations.
The cost of decontamination shall be to BLSI's account.

3.3  Facility Program
---------------------

Upon execution of this Agreement, in consideration of Nordion establishing the
Facility, BLSI will pay to Nordion a facility commitment fee of three hundred
thousand United States dollars (US $300,000). In the event this Agreement is
terminated within six (6) months of the Effective Date, Nordion shall, subject
to any offset of other sums owing by BLSI, reimburse to BLSI one hundred and
fifty thousand United States dollars (US $150,000) of such facility commitment
fee. In the event this Agreement is terminated after six (6) months from the
Effective Date and prior to the first anniversary of this Agreement Nordion
shall, subject to any offset of other sums owing by BLSI, reimburse to BLSI
fifty thousand United States dollars (US $50,000) of such facility commitment
fee.

After the Facility is established, Nordion agrees, in consultation with BLSI,
to develop and implement a Master Validation Plan for the Facility that will
allow the production of Altropane under cGMPs to those volumes required by
BLSI, not to exceed the Maximum Batch Size. The costs of preparation,
development and implementation of the Master Validation Plan will be borne by
Nordion. Prior to implementation, both parties shall in writing approve the
Master Validation Plan. Nordion shall ensure that such Facility is available
for the production of Altropane for supply to BLSI on a priority basis.

<PAGE>

3.4  Repairs and Maintenance
----------------------------

After the Facility is established, Nordion shall maintain such Facility in
satisfactory operating condition as required by the Specifications, Process and
cGMPs, and all other applicable laws, regulations, rules or orders. The cost of
repairs, preventive maintenance and service contracts for the Moveable
Equipment shall be borne by BLSI. Prior to Nordion entering into third party
preventive maintenance and service/repair contracts for the Moveable Equipment,
Nordion shall obtain BLSI's prior written consent.

3.5  Commercial Phase Negotiations
----------------------------------

Within thirty (30) days after completion of milestone 2 under the Development
Phase, the parties shall for a period of at least sixty (60) days enter into
good faith negotiations for the supply of Altropane to BLSI, during the
Commercial Phase. Indicative pricing for the supply of Altropane is anticipated
to be the order of (CONFIDENTIAL TREATMENT REQUESTED)This pricing does not
include shipping costs. Actual pricing will be subject to good faith
negotiations of a Commercial Phase Supply agreement, it being understood that
the foregoing price reflects a radiolabelling yield of 90, batch sizes
containing a minimum of 100 doses and an Altropane dose containing 5 mCi of
Isotope at noon on the day of use. It is acknowledged that if, during the
initial stage of commercial introduction of Altropane, the minimum 20,000 annual
doses and/or 90% yield and/or batch size requirements are not met, the
negotiation of Commercial Phase pricing shall take such factors into account in
determining price.

<PAGE>

              ARTICLE 4 - BATCH SIZE IN SUPPORT OF NDA SUBMISSION
              ----------------------------------------------------

4.1  Maximum Batch Size
-----------------------

The Maximum Batch Size for each equivalency Batch produced under this Agreement
shall be sixty-five (65) doses of Altropane. The maximum number of vials
available for shipment will be fifty (50), the remainder being retained by
Nordion for archival and quality assurance testing. Altropane will be shipped in
an appropriate lead shield to be provided at Nordion's expense. All labels for
the vials and lead shields will be supplied by BLSI.

                      ARTICLE 5 - GENERAL MANUFACTURE AND
                         SUPPLY OBLIGATIONS OF NORDION
                         -----------------------------

5.1  Altropane Supply
---------------------

As set out in Section 3.2, Nordion agrees to use the Process to produce two (2)
equivalency Batches of Altropane that meets the Specifications and is
manufactured in material conformance with cGMPs and to ship Altropane as
directed by BLSI as required for the purposes of the Master Validation Plan,
for the limited purpose of establishing equivalency between Altropane and
product currently described in BLSI's IND with respect to Altropane. Nordion
reserves the right to withhold from shipment any Batch which does not conform
to Specifications. The price of any additional equivalency Batches required by
BLSI during the term of this Agreement in excess of those set out in this
Section 3.2, shall be twenty thousand United States dollars (US$ 20,000).

<PAGE>

5.2  Compliance with Law: Handling of Altropane
-----------------------------------------------

While Precursor, Isotope and Altropane are in its possession or under its
control, Nordion shall as applicable be responsible for its compliance with
statutory and regulatory requirements in the United States and Canada regarding
the development, manufacture, handling, storage, labeling, packaging,
transportation and shipment of the Precursor, Isotope and Altropane.

5.3  Testing and Documentation
------------------------------

Nordion shall maintain production records and BLSI shall have access to such
records in order to determine that each Batch was produced and tested in
compliance with the Specifications and cGMP requirements.

The tests and analyses provided in the Specifications as well as the nature and
form of records may be amended by Nordion from time to time, subject to mutual
agreement and based upon an explanation of such changes provided to BLSI by
Nordion.

                      ARTICLE 6 - GENERAL BLSI OBLIGATIONS
                      ------------------------------------

6.1  Precursor and Reference Standards
--------------------------------------

BLSI or, at BLSI's discretion, its designee shall provide Precursor and
Reference Standards to Nordion at no charge, which meets the specifications in
Schedules D and E in sufficient quantities to permit Nordion to meet its
obligations hereunder. Nordion shall store Precursor and Reference Standards in
accordance with its applicable specifications. BLSI shall at all times retain
title in and to such materials in Nordion's possession.

<PAGE>

6.2  Unavailability or Scarcity of Precursor or Reference Standards
-------------------------------------------------------------------

BLSI will notify Nordion upon BLS1 becoming aware of a shortage of supply of
Precursor or Reference Standards, if such shortage will impact the manufacture
of the Altropane. Except as set out below, BLSI shall not be liable for any
delays in the supply of Precursor or Reference Standards if due to Force
Majeure, provided however, that any such delays in Precursor or Reference
Standards supply will excuse Nordion's performance of activities related to
such Batch of Altropane to the extent Nordion's non-performance was caused by
the Precursor or Reference Standards supply delay.

6.3  Additional Compensation to Nordion
---------------------------------------

BLSI will compensate Nordion based on the rate of one hundred and twenty-five
United States dollars (US $125.00) per person per hour for the time spent by
Nordion,

          (i)   preparing and hosting Facility audits requested by BLSI
                including FDA preaudit inspections;
          (ii)  preparing responses to FDA inquiries and preparation by
                Nordion of information requested by BLSI in support of BLSI's
                Altropane NDA submission;
          (iii) attending meetings with the FDA; and
          (iv)  carrying out implementation of approved scope changes

In addition BLSI shall reimburse Nordion for all licensing fees incurred to
license any controlled substance with respect to Precursor, Reference Standards
or Altropane. BLSI shall reimburse Nordion for all costs incurred for travel
and accommodation in carrying out the foregoing activities. Nordion shall
provide an estimate of all such activities to BLSI.

<PAGE>

                        ARTICLE 7 - ALTROPANE SHIPMENTS
                        -------------------------------

7.1  Orders and Shipments
-------------------------

During the term of this Agreement, BLSI will forward orders to Nordion at its
Kanata, Ontario facility by facsimile including the identity of the recipient,
delivery destination protocol number, IND number, applicable USNRC materials
license number and IRS number. Delivery of Altropane to BLSI or as otherwise
directed by BLSI shall be FOB transport vehicle at Nordion's facility in
Vancouver, British Columbia. Risk of loss of Altropane shall pass to BLSI at
point of delivery.

During the term of this Agreement Nordion shall use commercially reasonable
best efforts to meet BLSI's orders and delivery requirements. Prior to first
shipment of Altropane to any third party site, BLSI shall obtain from such
third party and provide to Nordion such third party's license evidencing proper
legal authority for the receipt and possession of the Altropane by such third
party. BLSI shall obtain all approvals, licenses and permits required to import
Altropane into the United States. Nordion shall make shipping arrangements with
AirNet Express or such other carrier designated by Nordion and reasonably
approved by BLSI. All shipping costs incurred to deliver Altropane shall be
borne by BLSI.

7.2  Warranty/Recall
--------------------

Nordion warrants the Altropane will meet the Specifications and be manufactured
in accordance with cGMP's and be free from defects in material and workmanship
for the period from the date of manufacture to the expiry date set out on each
vial of Altropane.

If either party discovers that a Batch of Altropane does not meet the
Specifications, then the discovering party shall promptly communicate with the
other party to determine a mutually agreed course of action. If BLS! determines

<PAGE>

that the failure to meet Specifications results from an act, failure to act or
other fault of Nordion, or agent of Nordion, Nordion will promptly:

(i)  repair or replace such batch of Altropane; and

(ii) pay for shipping costs of replacement of Altropane.

In the event Nordion disputes BLSI's determination that the fault is due to
Nordion and/or its agent, the parties will select a mutually agreeable outside
consulting firm which will be instructed, to review the applicable information
and data and confirm or dissent from BLSI's determination. If the consulting
firm confirms BLSI's determination, Nordion will have the obligations set out
in this section and Nordion will pay the fees of such consulting firm. If the
consulting firm -dissents from BLSI's determination or determines that failure
to meet Specifications was due to products, information or services supplied by
BLSI, Nordion will not have the obligations set out in this section with
respect to the disputed Batch and BLSI will pay the fees of such consulting
firm.

                             ARTICLE 8 - LICENSE
                             -------------------

8.1  Royalty-Free License
-------------------------

BLSI hereby provides to Nordion a non-exclusive, nontransferable, royalty-free
license during the term of this Agreement to use the patents, data, information
and technology provided by BLSI relating to Altropane and the radiolabelling of
I-123 with Precursor for the sole purpose of assisting Nordion in carrying out
its obligations set out in this Agreement.

<PAGE>

                ARTICLE 9 - BLSI REPRESENTATIONS AND WARRANTIES
                -----------------------------------------------

9.1  BLSI's Representations and Warranties
------------------------------------------

BLSI represents, warrants and covenants that:

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

(ii)   it is the owner or has the right of use of the patents, data, information
       and technology supplied to Nordion by BLSI to assist Nordion in
       manufacturing Altropane and in carrying out its obligations hereunder;

(iii)  to BLSI's best information and belief it is the owner or has the right to
       use all data, information, know how, technology and intellectual
       property used by BLSI or its designee, in the manufacture of Precursor,
       Reference Standards and Altropane;

(iv)   there is no action or proceeding pending or insofar as BLSI knows or
       ought to know, threatened against BLSI before any court, administrative
       agency or other tribunal which might have an adverse material effect on
       its business;

(v)    it has the right to provide the license in section 8.1 and right to
       permit Nordion to use the patents, technology and know how provided to
       the extent required to assist Nordion in carrying out its obligations
       under this Agreement;

(vi)   it has not received any notice of adverse claim or infringement of any
       patent, copyright, or misappropriation of trade secrets in connection
       with the use and exploitation of the Precursor, reference Standard or
       Altropane;

(vii)  to BLSI's best information and belief, use or sale of Precursor,

       Reference Standards and Altropane and the data, information, technology
       and know how used in the Process and manufacture of Altropane contributed
       by BLSI do not infringe any valid third party patent, pending published
       patent application or other intellectual property right.

<PAGE>

            ARTICLE 10 - NORDION'S REPRESENTATIONS AND WARRANTIES
            -----------------------------------------------------

10.1 Representations and Warranties
-----------------------------------

Nordion represents, warrants and covenants that to the best of its knowledge
and belief:

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

(ii)   it is the owner or has the right to use the data, information and
       technology contributed by it with respect to the Background Technology;

(iii)  the Background Technology contributed by Nordion does not, infringe any
       patents, copyright or other industrial or intellectual property rights
       of third parties;

(iv)   it has not received any notice of adverse claim of infringement of any
       patent or misappropriation of trade secrets in connection with the use
       and exploitation of the data, information and technology used with
       respect to

       Background Technology contributed by Nordion; and

(iv)   there is no action or proceeding pending or insofar as Nordion knows or
       ought to know, threatened against Nordion before any court,
       administration agency or other tribunal which might have a material
       adverse effect on Nordion's business.

                            ARTICLE 11 - INDEMNITY
                            ----------------------

11.1 Indemnification by BLSI
----------------------------

BLSI agrees to indemnify, defend and hold Nordion and its Affiliates and their
respective directors, officers, employees and agents, harmless from and against
any damages, claims, liabilities and expenses (including, but not limited to,

<PAGE>

reasonable attorney's fees) resulting from any third party claims or suits
("General Claims Against Nordion") arising out of (a) BLSI's use, handling or
shipment, of Reference Standards, Precursor or Altropane, (b) BLSI's breach of
any of its obligations, warranties or representations hereunder, or (c) BLSI's
negligent acts, omissions or willful misconduct. Notwithstanding the foregoing,
BLSI will not be required to indemnify, defend and hold Nordion and its
Affiliates and their respective directors, officers, employees and agents
harmless from and against any General Claims Against Nordion to the extent that
such claims arise out of (i) Nordion's breach of any of its obligations,
warranties or representations hereunder; (ii) Nordion's negligent acts,
omissions or willful misconduct; (iii) any failure of Nordion to manufacture,
handle, store, label, package, transport or ship Altropane in accordance with
cGMPs or any other applicable laws, regulations, or other requirements of any
applicable governmental entity; or (iv) any failure of Nordion to manufacture
Altropane consistent with applicable sections of BLSI's IND in the United
States. Notwithstanding anything in this Section 11.1, General Claims Against
Nordion shall not include IP Claims Against Nordion as described in Section
11.3.

11.2 Indemnification by Nordion
-------------------------------

Nordion agrees to indemnify, defend and hold BLSI and its Affiliates and their
respective directors, officers, employees and agents, harmless from and against
any damages, claims, liabilities and expenses (including, but not limited to,
reasonable attorney's fees) resulting from any third party claims or suits
("General Claims Against BLSI") arising out of (a) Nordion's manufacture,
handling, storage, labeling, packaging or delivery of the Altropane; (b)
Nordion's breach of any of its obligations, warranties or representations
hereunder; (c) Nordion's negligent acts, omissions or willful misconduct; (d)
any failure of the Altropane to meet the Specifications; or (e) any failure of
Nordion to manufacture, handle, store, label, package, transport or ship
Altropane in accordance with cGMPs or any other applicable laws, regulations or
other requirements of any

<PAGE>

applicable governmental entity. Notwithstanding the foregoing, Nordion will not
be required to indemnify, defend and hold BLSI and its Affiliates and their
respective directors officers, employees and agents harmless from and against
any General Claims Against BLSI to the extent that such claims arise out of (i)
BLSI's breach of any of its obligations, warranties or representations
hereunder; (ii) BLSI's negligent acts, omissions or willful misconduct; (iii)
any defect or failure of Reference Standards or Precursor to meet applicable
specifications. Notwithstanding anything in this Section 11.2. General Claims
Against BLSI shall not include IP Claims Against BLSI as described in Section
11.4.

11.3 Intellectual Property Claims Against NORDION
-------------------------------------------------

BLSI agrees to indemnify, defend and hold Nordion and its Affiliates and their
respective directors, officers, employees and agents, harmless from and against
any damages, claims, liabilities and expenses (including, but not limited to,
reasonable attorneys' fees) resulting from any third party claims or suits
arising out of any proceeding instituted by or on behalf of a third party based
upon a claim that the Process, method, manufacture, use or sale of the
Reference Standards, Precursors or Altropane, infringes a United States or
Canadian patent or any other intellectual property or proprietary right of a
third party ("IP Claims Against Nordion"). Notwithstanding the foregoing, to
the extent the Process, is developed or contributed by Nordion, BLSI will not
be required to indemnify, defend or hold harmless Nordion or its Affiliates,
and their respective directors, officers, employees and agents from and against
IP Claims Against Nordion.

11.4 Intellectual Property Claims Against BLSI
----------------------------------------------

Nordion agrees to indemnify, defend and hold harmless BLSI and its Affiliates,
and their respective directors, officers, employees and agents from and against
any damages, claims, liabilities and expenses (including, but not limited to,
reasonable attorney's fees) resulting from any third party claims or suits
arising

<PAGE>

out of any proceeding instituted by or on behalf of a third party based upon a
claim that the Background Technology or Process to the extent developed or
contributed by Nordion, infringes a United States or Canadian patent or any
other intellectual property or proprietary right of a third party ("IP Claims
Against BLSI").

11.5 Infringement
-----------------

In the event that any portion of the Background Technology, Process or
technology developed or contributed under this Agreement becomes the subject of
a claim for a patent, copyright or other industrial or intellectual property
rights infringement action by a third party, Nordion reserves the right and may
at its option, based upon evaluation of such claim by legal counsel mutually
selected by Nordion and BLSI,

          (i)  procure the right to continue using the radiolabelling
               technology or if such technology was contributed by BLSI to
               require BLSI to procure such right within a reasonable time
               not to exceed thirty (30) days;
         (ii)  modify the Process (to the extent developed or contributed by
               Nordion) or require BLSI to modify the Process to become
               non-infringing; or

(i)  upon written notice to BLSI immediately cease its activities and/or
     terminate this Agreement.

The cost and expense of any opinion of counsel sought by Nordion under this
section shall be equally shared by the parties.

11.6 Indemnification Procedures
-------------------------------

A party (the "indemnitee") which intends to claim indemnification under this
Article 11 shall promptly notify the other party (the "Indemnitor") in writing
of any action, claim or other matter in respect of which the Indemnitee or any
of its

<PAGE>

directors, officers, employees or agents intend to claim such indemnification;
provided, however, the failure to provide such notice within a reasonable
period of time shall not relieve the Indemnitor of any of its obligations
hereunder except to the extent the Indemnitor is prejudiced by such failure.
The Indemnitee shall permit, and shall cause its directors, officers, employees
and agents to permit the Indemnitor, at its discretion, to settle any such
action, claim or other matter. The Indemnitee agrees to the complete control of
such defense or settlement by the Indemnitor, provided, however, such
settlement does not adversely affect the Indemnitee's right hereunder, admit
liability by Indemnitee or impose any obligations on the Indemnitee. No such
action, claim or other matter shall be settled without the prior written
consent of the Indemnitor, and the Indemnitor shall not be responsible for any
attorney's fees or other costs incurred other than provided herein. The
Indemnitee and its directors, officers, employees and agents shall co-operate
fully with the Indemnitor and its legal representatives in the investigation
and defense of any action, claim or other matter covered by this
indemnification. The Indemnitee shall have the right, but not the obligation,
to be represented by counsel of its own selection and at its own expense.

                     ARTICLE 12 - PATENTS AND TECHNOLOGY
                     -----------------------------------

12.1 Ownership of Work Performed
--------------------------------

The Process as developed or contributed by BLSI shall be the sole and exclusive
property of BLSI. Except to the extent the Process is developed or contributed
by BLSI, BLSI agrees and acknowledges, that any and all ideas, technology,
method, data, information, inventions, improvements derivative works and works
of authorship conceived, written, created or first reduced to practice in the
performance of the development of the Process, the Background Technology and
improvements to the Background Technology during the term of this Agreement,
shall be the sole and exclusive property of Nordion.

<PAGE>

                       ARTICLE 13 - REGULATORY MATTERS
                       -------------------------------

13.1 Regulatory Status
----------------------

Upon Nordion's reasonable request, BLSI shall provide updates to Nordion on (i)
the progress of Clinical Trials related to Altropane, and (ii) submissions to
the FDA and other jurisdictions for marketing authorization with respect to
Altropane.

13.2 BLSI Responsibilities
--------------------------

It shall be the responsibility of BLSI or its designee to file, obtain and
maintain an IND, registrations, listings, authorizations and approvals as the
FDA or other applicable governmental entity may require to enable use of
Altropane in Clinical Trials in the United States. Nordion shall provide
directly to BLSI, or at Nordion's discretion, directly to the regulatory
authority for the purpose of protection of its proprietary technology with
respect to the manufacture of Isotope, all required information in its
possession necessary to assist BLSI in filing, obtaining and maintaining all
licenses, registrations, listings, authorizations and approvals of any
governmental entities necessary for the use of Altropane in support of BLSI's
Altropane NDA submission.

13.3 Nordion Responsibilities
-----------------------------

Nordion shall be responsible for obtaining and maintaining all necessary
facility licenses, registrations, authorizations and approvals which are
necessary to develop, manufacture, handle, store, label, package, transport and
ship Altropane under cGMP conditions and other regulatory requirements
including, but not limited to, the use and handling of radioactive materials

<PAGE>

At Nordion's expense, Nordion shall update its existing 1-123 bulk chemical or
facility description Drug Master File ("DMF") with the FDA as may be required
for BLSI's NDA for Altropane in accordance with Schedule A Nordion hereby
grants BLSI a right of reference to such DMF, and upon request shall provide a
letter of access to the DMF allowing regulatory review of the DMF by the FDA in
conjunction with BLSI's Altropane submissions. At Nordion's expense, Nordion
shall apply for and seek a DMF for Altropane in accordance with Schedule A.

13.4 Government Inspections, Compliance Review and Inquiries
------------------------------------------------------------

Upon request of any governmental entity or any third party entity authorized by
a governmental entity, such entity shall, for the purpose of regulatory review,
have access to observe and inspect the Facility and procedures used for the
storage of Reference Standards and Precursor and the manufacturing, testing,
storage and shipping of Altropane, including Process development operations,
and to audit such Facility for compliance with cGMP and/or other applicable
regulatory standards. Nordion shall give BLSI prompt notice of any upcoming
inspections or audits by a governmental entity of the Facility or procedures
and shall, if time permits, allow BLSI to participate in such audits by being
present at the FDA audit close out meeting and shall provide BLSI with a
written summary of such inspection or audit following completion thereof.
Nordion agrees to use commercially reasonable efforts to promptly rectify or
resolve any deficiencies noted by a government entity in a report or
correspondence issued to Nordion.

13.5 Access to the Facility
---------------------------

BLSI shall have reasonable access to the Facility at least once per calendar
quarter during the Development Phase for the purpose of observing Process
development relating to Altropane. BLSI shall provide to Nordion at least ten
(10) business days prior written notice of requested access to the Facility for
the purpose of this Section. All such information disclosed to BLSI or its
employees or agents, shall

<PAGE>

be deemed to be Nordion's Confidential Information as such term is defined in
this Agreement.

13.6 Recalls
------------

BLSI shall notify Nordion promptly if Altropane is the subject of a recall or
correction (a "Recall"), and BLSI and/or its designee shall have sole
responsibility for the handling and disposition of such Recall. BLSI and/or its
designee shall bear the costs of any Recall of Altropane unless and to the
extent such Recall shall have been the result of Nordion's or its employees
acts of omissions or any product defects for which Nordion is responsible in
which case Nordion shall to such extent be responsible for BLSI's reasonable
out-of-pocket costs incurred for:

(i)    notification of recall to Nordion and third parties;
(ii)   return shipment of any defective Altropane to Nordion; and
(iii)  replacement of Altropane.

In the event that Nordion disputes BLSI's determination that the fault is due
to Nordion and/or to its agent, the parties will select a mutually agreeable
outside consulting firm which will be instructed to review the applicable
information and data and to confirm or dissent from BLSI's determination. If
the consulting firm confirms BLSI's determination, Nordion will pay the fees of
such consulting firm. If the consulting firm dissents from BLSI's determination
Nordion will not have the obligations set forth herein with respect to the
Recall and BLSI will pay the fees of such consulting firm. BLSI and/or its
designee shall maintain records of all sales, shipping records of Altropane and
customers in sufficient detail to adequately administer a Recall for the period
of time as required by applicable regulation.

<PAGE>

13.7 New Regulatory Requirements
--------------------------------

Each party shall promptly notify the other of new regulatory requirements of
which it becomes aware which are relevant to the manufacture of Altropane under
this Agreement and which are required by the FDA and other applicable
governmental entities and the parties shall confer with each other with respect
to the best means to comply with such requirements.

13.8 Records
------------

Nordion shall maintain all records necessary to evidence compliance with (i)
all applicable laws, regulations and other requirements of applicable
governmental entities in the United States and Canada relating to the supply
and manufacture of Altropane; (ii) the Specifications; and (iii) obligations
under this Agreement. All such records shall be maintained by Nordion for at
least two (2) years after termination or expiration of this Agreement. Nordion
shall provide to BLSI reasonable access to such records upon request. Prior to
destruction of any record after such time, Nordion shall give written notice to
BLSI. BLSI shall have the right to request that Nordion maintain such records
in an off site storage facility for such longer periods as BLSI requests,
provided that BLSI pays all costs associated with such off site storage.

                         ARTICLE 14 - CONFIDENTIALITY
                         ----------------------------

14.1 Confidentiality and Exceptions
-----------------------------------

During the term of this Agreement and for a period of ten (10) years
thereafter, each party hereto shall maintain in confidence the content of the
transactions contemplated herein, all technology including Background
Technology and improvements thereto, Nordion proprietary technology, BLSI
proprietary

<PAGE>

technology, trade secrets, know-how, data, processes, methods, techniques,
formulas and test data (collectively "Confidential Information") and other
information disclosed to such party by the other party which is identified as
"Confidential Information" by the disclosing party. This obligation of
confidentiality shall not apply to the extent that it can be established by the
party in receipt of such information, that the information;

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

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

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

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

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

     Each party agrees that it will take the same steps to protect the
     confidentiality of the other party's Confidential Information as it takes
     to protect its own proprietary and confidential information, which shall
     in no event be less than reasonable steps. Each party, and its employees
     and agents shall protect and keep confidential and shall not use, publish
     or otherwise disclose to any third party, except as permitted by this
     Agreement or with the other party's written consent, the other party's
     Confidential Information. It is agreed that disclosure of data,
     information or technology by BLSI or Nordion to the other under this
     Agreement shall not constitute any grant, option or license under any
     patent, technology or other rights, held by BLSI or Nordion. Any use of
     the data, information and technology provided by BLSI to Nordion which
     relates to Precursor, Reference Standards or radiolabelling of Precursor
     shall be

<PAGE>

for the limited purpose of assisting Nordion in carrying out its obligations
under this Agreement. All data, information, or technology supplied by one
party to the other to assist in carrying out the obligations hereunder shall
remain the property of such party and shall be returned to the other party upon
termination of this Agreement.

                     ARTICLE 15 - DISCLOSURE OF INFORMATION
                     --------------------------------------

15.1 Authorized Disclosure
--------------------------

Except as otherwise set out, it is agreed that disclosure of data, information
or technology by Nordion or BLSI, to the other, during the term of this
Agreement shall not, except to the extent granted herein, constitute any grant,
option or license under any patent, technology or other rights, held by Nordion
or BLSI. Notwithstanding section 14.1 each party may disclose Confidential
Information to the extent such disclosure is reasonably necessary for
prosecuting or defending litigation, complying with applicable government laws
or regulations, provided that if a party is required by law or regulation to
make any such disclosure of the other party's Confidential Information it will,
except where impracticable for necessary disclosures, for example, in the event
of medical emergency, give reasonable notice to the other party of such
disclosure requirement and will use its reasonable efforts to secure a
protective order or confidential treatment of such confidential information to
be disclosed.

<PAGE>

                        ARTICLE 16 - TERM AND TERMINATION
                        ---------------------------------

16.1 Initial Term
-----------------

The term of this agreement shall commence upon the Effective Date and, unless
terminated earlier pursuant to this agreement, or extended upon mutual
agreement of the parties, shall expire on the earlier of one (1) year after
completion of Milestone 8 as set out in Schedule A or September 30, 2001.

16.2 Termination Without Cause
------------------------------

BLSI may terminate this Agreement without cause or penalty upon thirty (30)
days prior written notice to Nordion. Upon such termination Nordion shall be
entitled to retain all amounts paid by BLSI, and BLSI shall pay to Nordion any
amounts due and/or earned but not yet paid, and Nordion shall return at BLSI's
expense the Moveable Equipment.

16.3 Termination for Breach
---------------------------

This Agreement may be terminated by either party in the event of the material
breach by the other party of the terms and conditions hereof; provided,
however, the other party shall first give to the breaching party written notice
of the proposed termination of this Agreement (a "Breach Notice"), specifying
the grounds therefore. Upon receipt of such Breach Notice, the breaching party
shall have such time as necessary, but in any event not more than thirty (30)
days to cure such breach. Notwithstanding the foregoing, if the breaching party
does not cure such breach within such cure period, the other party may
terminate the . Agreement without prejudice to any other rights or remedies
which may be available to the non-breaching party.

<PAGE>

16.4 Bankruptcy
---------------

This Agreement may be terminated by either party in the event the other party
files a petition in bankruptcy, is adjudicated a bankrupt, or files a petition
or otherwise seeks relief under or pursuant to any bankruptcy, insolvency or
reorganization statute or proceeding, or if a petition in bankruptcy is filed
against it which is not dismissed within sixty (60) days or proceedings are
taken to liquidate the assets of such party.

                              ARTICLE 17-SURVIVAL
                              -------------------

17.1 Consequences or Termination or Expiration
----------------------------------------------

Upon expiration or termination of this Agreement, the obligations of the
parties under Articles 9,10,11,12 and 19 and any other Article or section which
by its nature is to survive, shall survive such expiration or termination in
accordance with its terms.

                               ARTICLE 18-NOTICES
                               ------------------

18.1 Any notice to be sent to a party hereunder shall be forwarded to:

        Nordion at:     MDS Nordion Inc.
                        447 March Road
                        Kanata, ON
                        K2K 1X8
        Attention:      Senior Vice President, Nuclear Medicine

        BLSl at:        Boston Life Sciences, Inc.
                        137 Newbury St, 8th Floor
                        Boston, MA
        Attention:      Dr. Marc Lanser

<PAGE>

Any notice required or authorized to be given by a party to the other in
accordance with the provisions of this Agreement shall, unless Otherwise
specifically stipulated, be in writing and delivered personally, by a
nationally recognized overnight courier, or if by electronic facsimile
confirmed by certified or registered mail. Notice shall be deemed delivered
upon receipt.

                         ARTICLE 19 - LIMITED LIABILITY
                         ------------------------------

19.1 Disclaimer
---------------

In no event shall either party be liable to the other party for indirect,
contingent, incidental, special or consequential damages.

19.2 Limitation of Product Warranty
-----------------------------------

BLSI acknowledges that Nordion is manufacturing and supplying Altropane to meet
Specification. Except as expressly set out in this Agreement, Nordion hereby
disclaims all other warranties or conditions, whether express or implied,
statutory or otherwise, including but not limited to any implied warranties or
conditions of merchantability or fitness for a particular purpose.

                   ARTICLE 20 - ASSIGNMENT AND SUBCONTRACTING
                   ------------------------------------------

20.1 No Assignment
------------------

This Agreement shall ensure to the benefit of and shall be binding upon the
heirs, executors, administrators, successors and permitted assigns of the
parties. Neither Nordion nor BLSI shall assign any portion of this Agreement
without the

<PAGE>

written approval of the other party, which approval shall not be unreasonably
withheld.

                            ARTICLE 21 - COMPLIANCE
                            -----------------------

21.1 Compliance with Laws
-------------------------

This Agreement and Nordion's and BLSI's obligations hereunder shall be carried
out in compliance with all applicable laws, by-laws, rules, regulations and
orders of all applicable Federal, State, Provincial and Municipal governments.

                            ARTICLE 22 - NON-WAIVER
                            -----------------------

22.1 Non-Waiver of Rights
-------------------------

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

22.2 Force Majeure
------------------

Neither party shall be liable to the other for failure to perform or delay in
performing its obligations under this Agreement by virtue of the occurrence of
an event of Force Majeure. In the event of Force Majeure, the party affected
shall promptly notify the other and shall exert commercially reasonable efforts
to eliminate, cure or overcome such event and to resume performance of its
obligations. In the event such Force Majeure affecting either party continues
for more than thirty (30) days the party not subject of the Force Majeure may
terminate this Agreement. "Force Majeure" shall mean an occurrence which
prevents, delays or interferes with the performance by a party of any of its

<PAGE>

obligations hereunder, if such event occurs by reason of any act of God, flood,
power failure, fire, explosion, casualty or accident, or war, revolution, civil
commotion, acts of public enemies, blockage or embargo, or any law, order or
proclamation of any government, failure of suppliers or usual suppliers to
provide materials, equipment or machinery, interruption of or delay in
transportation, strike or labor disruption, or other cause, whether similar or
dissimilar to those above enumerated provided these are beyond the commercially
reasonable control of such party.

                             ARTICLE 23 - INSURANCE
                             ----------------------

23.1 Product Liability Insurance
--------------------------------

During the term of this Agreement and for a period of one (1) year thereafter
BLSI at its own expense shall provide and maintain a products liability
insurance policy issued by an insurance company acceptable to Nordion and in a
form acceptable to Nordion, with respect to Altropane. Such policy shall add
Nordion as an additional insured and shall have a limit of liability of not
less than three million United States dollars ($3,000,OOOUS) per occurrence and
in aggregate. BLSI shall be solely responsible for any deductible or retention
associated with this policy and such shall not affect Nordion's interests. The
policy shall contain a cross liability clause and shall provide for
severability of interest such that breach of a policy condition committed by
any one insured shall not adversely affect the rights of the other insured.
Nordion shall be provided thirty (30) days' prior written notice of any
material change to the policy and such change shall be subject to Nordion's
prior written consent, which consent shall not be unreasonably withheld.
Nothing contained in this Section shall be deemed to limit in any way the
indemnification provisions contained in this Agreement.

<PAGE>

                            ARTICLE 24 - PUBLICATION
                            ------------------------

24.1 Publicity
--------------

The parties agree, that except as may otherwise be required by applicable laws,
regulations, rules or orders, no information concerning this Agreement and the
transactions contemplated herein shall be made public by either party without
the prior written consent of the other, which consent shall not be unreasonably
withheld. In the event either party decides to issue a press release announcing
the execution of this Agreement, it shall not do so without the prior written
approval of the other party.

A copy of any proposed press release shall be provided to the other party at
least three (3) business days prior to any proposed release.

In the event that this Agreement or any portion of its contents is required to
be disclosed by BLSI pursuant to Security Exchange Commission regulations in
the United States, BLSI shall provide reasonable notice to Nordion and consult
Nordion prior to any such disclosure in order that the content disclosed not
include what Nordion may reasonably consider confidential, proprietary and
commercially sensitive information.

                        ARTICLE 25 - DISPUTE RESOLUTION
                        -------------------------------

25.1  Dispute Resolution
------------------------

Except as otherwise set out, in the event that at any time during the term of
this Agreement, a disagreement, dispute, controversy or claim should arise
relating to the (i) interpretation of or performance under this Agreement or
the attribution of

<PAGE>

liability or breach thereof; or (ii) scientific or technical issues in
connection with Nordion or BLSI's performance under this Agreement, the parties
will attempt, in good faith, to resolve their differences for a period of
thirty (30) days. In the event the parties are unable to work out a resolution
of the issue, either party shall be free to take any action and seek any remedy
it may have at law or in equity including specific performance and injunctive
relief.

                      ARTICLE 26 - INDEPENDENT CONTRACTOR
                      -----------------------------------

26.1 No Joint Venture
---------------------

The parties agree that with respect to the transactions contemplated herein
that they shall both be acting as independent contractors and nothing herein
shall constitute the parties as entering into a joint venture or partnership,
nor shall constitute either party as an agent of the other for any purpose
whatsoever.

                            ARTICLE 27 - SEVERABILITY
                            -------------------------

27.1  Invalid Provisions
------------------------

If any provision or term of this Agreement is found unenforceable under any of
the laws or regulations applicable thereto, all other conditions and provisions
of this Agreement shall nevertheless remain in full force and effect. Upon such
determination that any term or other provision is invalid, illegal or incapable
of being enforced, the parties hereto shall negotiate in good faith to modify
this Agreement to effect the original intent of the parties as closely as
possible in a mutually acceptable manner, in order that the transaction
contemplated hereby be consummated as originally contemplated to the greatest
extent possible.

<PAGE>

                             ARTICLE 28 - AGREEMENT
                             ----------------------

28.1 Entire Agreement
---------------------

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

                                ARTICLE 29 - LAW
                                ----------------

30.1 Applicable Law
-------------------

This agreement shall be governed and construed in accordance with the laws of
the Province of Ontario, Canada, without reference to its principles on
conflict of laws. The application of the United Nations Convention for the
International Sale of Goods is expressly excluded.

IN WITNESS WHEREOF the parties hereto have executed this agreement on the date
first above written.

MDS NORDION INC.                             BOSTON LIFE SCIENCES, INC.
By:    /s/ Francois Couillard                By:    /s/ Marc Lanser
   ----------------------------                 ---------------------
   Francois Couillard                           Dr. Marc Lanser
   Vice President                               Chief Scientific Officer
   Sales & Marketing

<PAGE>

                                   SCHEDULE A
                                  SCOPE OF WORK

<TABLE>
<CAPTION>
                                                                          Duration            Commence
Activity                                                                   X weeks          Y weeks from
                                                                                           Effective Date
<S>                                                                           <C>                 <C>
1.  Milestone 1: Iodination Improvement
    -----------------------------------

     a)  Write, review and approve Preliminary Safety Analysis                1                   1
         Report (PSAR)

     b)  Experimental Design for Scale-Up                                     1                   1

     c)  Scale-Up from 2.5 to 4 Ci (up to 10 runs maximum)                    5                   3
              i)  Show reproducibility of procedure
              ii) Increase yield to * 80% after quenching and
                  isolation (commercially reasonable best efforts)

     d)  Document experiments and archive data (HPLC traces,                  1                   7
         logbooks, etc.)

2.  Milestone 2: Reformulation and Purification
    -------------------------------------------

     a)  Develop HPLC Separation Method (different from Analytical            5                   2
         Method)

     b)  Develop Automation: sample transfer and collection                   5                   2

     c)  Develop compatibility of HPLC collected fraction with                5                   2
         Formulation. Establish excipients

     d)  Verify autoclavability of formulation. Establish excipient           5                   2
         ranges. Confirm product meet specifications on Schedule F

     e)  IQ/OQ and validate autoclave                                         3                   4

     f)  IQ/OQ/PQ for HPLC equipment pump, injector, switching box,           2                   8
         radiation detector

     g)  Draft Master Batch Record for BLSI Approval                          2                  10

3.  Milestone 3: Develop Dispensing Equipment
    -----------------------------------------

     a)  Develop dispensing setup for 65 vial capacity                        5                   3
     -  IQ/OQ/PQ Dispenser
     -  Seal and crimp

     b)  Develop container/closure system                                     2                   9
     -  Complete closure test and integrity
     -  Complete recoverability of dose from Container Test

     c)  Establish Class 100 conditions for dispensing box at vial            1                  10
         opening.

     d)  IQ/OQ/PQ Shielded Boxes (SB)                                         2                  11
     - calibrate gauges
     - establish airborne I-123 detection system

     e)  IQ/OQ/PQ Laminar Air Flow (LAF) Assembling Area                      1                  11

     f)  Initiate Environmental Monitoring in LAF, SB and                     3                  11
         Controlled Access Room 112B.

4.  Milestone 4: Develop QC Test Methods
    ------------------------------------

     a)  HPLC Method for Final Product                                        1                  12
     - verify ** 5ug/mL for       1) Altropane
                                  2) Precursor
                                  3) N-Allyl compound
                                  4) Any other identified
                                      impurities as per
                                      specifications in
                                      Schedule F.

     - establish  1) Chemical Purity -
                     Semi-Quantitative Method
                     for ** value.
                  2) Radiochemical Purity

     - Note this is a method transferred from BLSI
     - Write and Approve Standard Text Method (STM)

     b)  IQ/OQ/PQ Dose Calibrator                                             1                  13
     Write and approve STM

     c)  Gamma Spectroscopy                                                   1                  13
     - Calibration Protocol
     - NIST traceability
     - 156 ke V Identification (ID) for I-123
     - Write and approve ATM

     d)  Endotoxin Test (USP)                                                 1                  14
     - Dilution to overcome Inhibition/Enhancement
     - Maximum valid dilution
     - Qualification of test method
     - Write and approve STM

     e)  Sterility Test (USP)                                                 1                  14
     - Establish sampling size
     - Write and approve STM

     f)  Product Release Form (PRF)                                           1                  15
     - Identify all documents necessary for
       batch release

5.  Milestone 5: Validation of New Process
    --------------------------------------

     a)  Write and approve Master Validation Plan                             8                   3
     - Equipment: Analytical and Process
     - Analytical Methods
     - Process
     - Final Product Stability

     b)  Method Transfer Validation                                           1                  16
     - Analytical Methods
     - Reference Standards (shelf-life; ID)
     - Precursor (ID; shelf-life)

     c)  Validation Protocols                                                 1                  17

     d)  Three to Six Process Runs to fine tune process                       4                  18

     e)  Train Operators                                                      4                  19
     - 3 Production technicians
     - 3 QC/QA
     - 2 Packaging

6.  Milestone 6: Prepare Development Report
    ---------------------------------------

     a)  Document all experimentation                                         6                  20

     b)  Archive all data/logbooks                                            6                  20

     c)  Write and approve Development Report                                 6                  29
     - Process Description and Development
     - Master Formula
     - Impurities profiles (standards to be provided by BLSI)
     - Excipient Ranges
     - Final Product Specifications
     - Scale-Up rationale
     - Equivalence to previous formulation (to be done in
        conjunction with BLSI at BLSI cost)
     - Qualification of Reference Standards to be done by BLSI
     - Precursor made under cGMPs to be provided by BLSI
     - Analytical Method and Validation to be done by BLSI
     - Bioburden Profiles for Raw Material
     - Environmental data - house isolates
     - BLSI to provide stability indicating methods for final
        product
     - Define Utilities
     - Cleaning Protocol

7.  Milestone 7: File DMF for Altropane
    -----------------------------------

       a)  Provide SOPs/STMs for CMC section of NDA                           3                  26

       b)  Provide flowcharts                                                 3                  26

       c)  Establish Review and Approval responsibility for                   3                  26
           documents

       d)  Establish Recall procedure                                         3                  26

       e)  Establish responsibilities of                                      3                  26
           1)  Deviations
           2)  Change Control
           3)  Product Release
           4)  Failure Investigation
           5)  Out-of-Spec Investigation
           6)  Draft required procedures

8. Milestone 8: Prepare for PAI                                               3                  29
   ----------------------------

       a)  Audit for cGMP compliance (with BLSI)                              3

       b)  Review findings and establish action plan                          3

       c)  Review costs of ongoing and enhanced compliance (to be
           billed to BLSI as required)

       Note: PAI readiness will require additional staffing and/or
           consultants that will be costed to BLIS

9.  Perform GMP Equivalency Runs (Validation Runs)                            3                  32
    ----------------------------------------------

       a)  Perform three runs; 4 Ci I-123; 65 doses @ 8 mCi each; 50          3                  32
           shippable

       b)  Compile all data for validation files.                             3                  32
</TABLE>

* more than or equal to
** less than

<PAGE>

                                  Schedule B

           Facility Resources for Contract Manufacture of Altropane

In Manufacturing Room 112B the following equipment is dedicated to Altropane:

..    Laminar Flow Hood for reagent and equipment preparation
..    Three lead shielded stainless steal glove boxes with HEPA filtration and
     Nuclear Ventilation
     .    Box 1 reaction, separation, formulation box containing semi-
          preparative automated HPLC for drug substance isolation
     .    Box 2 has the function to act as a dispensing area. The dispensing
          environment is class 100
     .    Box 3 is the terminal sterilization box containing an autoclave and a
          remote handling ball and tong manipulator
     .    All boxes have been conceptually tested to safely handle 4000 mCi of
          I-123 radioactivity
     .    Boxes feature removable access panels, glove ports, pass through
          ports, a waste elevator and some remote feature to reduce technician
          radiation dose
..    Specialized shielding assemblies are used for the safe transport of
     formulated unit dose radiopharmaceuticals

     Some general features of this room and non dedicated support services are:

..    The room is environmentally and radiation monitored
..    There are waste handling systems in place to deal with chemical waste
     streams as well as solid and liquid radioactive wastes
..    The entire manufacturing environment is cGMP regulated
..    Qualified and trained staff with experience in diagnostic
     radiopharmaceutical manufacture are employed
..    The entire manufacturing facility is supported by a calibration department
..    A fully outfitted microbiology lab is available for microbiological and
     environmental tests (Most importantly LAL tests for pyrogenicity).
..    There is an attached microbiology clean room used for sterility tests and
     filtration. This clean room contains a class 100 glove box.

<PAGE>

                                  Schedule C

     Summarized List of Inventory Items received from Boston Life Science
                         for use in ALTROPANE Analysis

..  2 Rainin Dynamax variable wavelength UV Detectors
..  4 Rainin Dynamax HPLC pumps with accompanying stands and mixers
..  2 Rheodyne 77251 Injectors with loops
..  1 Complete Dell Optiplex Gxa PC with peripherals and monitor
..  1 Okidata OL 400 E Printer o One Tripp Lite UPS
..  2 Bioscan Flowcount Detectors with 2 Probes
..  One used Rainin Microscrub HPLC column
..  One used Waters Novapak C-18 HPLC column
..  One used Perkin Elmer Brownlee HPLC column (possibly damaged)
..  One used "black box" custom interface to allow switching of the 2 HPLC
   systems
One box of assorted small tools, parts and accessories

<PAGE>

                                   SCHEDULE D
                       ALTROPANE PRECURSOR SPECIFICATIONS

                       (Confidential Treatment Requested)

<PAGE>

                                   SCHEDULE E
                       REFERENCE STANDARDS SPECIFICATIONS
                       (Confidential Treatment Requested)

<PAGE>

                                   DATA SHEET

                       (CONFIDENTIAL TREATMENT REQUESTED)

<PAGE>

                                  Schedule F

                           Altropane Specifications

                      (CONFIDENTIAL TREATMENT REQUESTED)

<PAGE>

PRICE SCHEDULE G

   1.  Facility Commitment Fee:

       This is a one-time commitment fee for the facility described in Schedule
       B.

       Price: $300,000 US

       Note: Fee is payable upon signing of the Agreement.

   2.  Milestones Payments:

       Milestone          Description                        Price US

       Milestone 1 & 2    Iodination Improvement &           $325,000
                          Reformulation and Purification

       Milestone 3        Dispensing Equipment               $142,000

       Milestone 4        QC Test Methods                    $119,000

       Milestone 5        Validation of New Process          $172,000

       Milestone 6        Development Report                 $ 35,000

       Milestone 7        File DMF for Altropane             $ 44,000

       Milestone 8        Prepare for PAI                    $ 60,000

       Note: 20% of each Milestone payment is due upon signing of the Agreement,
       20% when the specific Milestone is commenced and the remainder of each
       Milestone payment due upon completion of the Milestone.

   3.  Additional Batches:

       Price US$20,000. per Batch

       Notes -
   a)  Two Batches are included as part of the Agreement.
   b)  Payment is due within 30 days of the date appearing on Nordion's invoice.
   c)  Batches are 65 doses of Altropane(TM) of which 50 are shippable.

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