Document:

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                                                                   EXHIBIT 10.11

                              EMPLOYMENT AGREEMENT
                          (for Robert E. Gallahue Jr.)

      EMPLOYMENT AGREEMENT (this "Agreement") dated as of July 1, 2005 (the
"Effective Date"), by and between Molecular Insight Pharmaceuticals, Inc., a
Massachusetts corporation having its principal place of business at 160 Second
Street, Cambridge, Massachusetts 02142 (the "Employer"), and Robert E. Gallahue
Jr., 544 Sharpners Pond Road, North Andover, Massachusetts 01845 (the
"Employee").

                                  WITNESSETH:

      WHEREAS, the Employer is engaged in the business of developing and
marketing imaging pharmaceuticals which detect human disease; and

      WHEREAS, the Employee possesses the experience necessary in administration
and general and active supervision and direction of the daily operations of a
biopharmaceutical business in order to fulfill the responsibilities as Chief
Financial Officer of the Employer; and

      WHEREAS, the Employer desires to employ the Employee, and the Employee
desires to be employed by the Employer, all in accordance with the terms and
provisions of this Agreement.

      NOW, THEREFORE, in consideration of the covenants and promises hereinafter
contained, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the Employer and the Employee
represent, covenant and agree as follows:

      1. Employment. The Employer hereby employs the Employee to serve as Chief
Financial Officer of the Employer in accordance with the terms and provisions of
this Agreement, and the Employee hereby accepts such employment with the
Employer.

      2. Term. The term of this Agreement shall commence on the Effective Date
and shall continue until this Agreement is terminated as hereinafter provided.

      3. Compensation. As compensation for all services rendered by the Employee
to the Employer pursuant to this Agreement, the Employer shall pay to the
Employee the following amounts during the term of this Agreement:

         (a) Base Compensation. The Employer shall pay to the Employee base
compensation at no less than the rate set forth on Schedule A attached hereto
and herein incorporated by reference (the "Base Compensation"). The Base
Compensation shall be payable pursuant to the Employer's standard payroll
practices, except as otherwise noted on Schedule A. The Base Compensation shall
be reviewed by the compensation committee of the Board of the Employer annually
and increases in the Base Compensation, if any, shall be determined in the
Employer's sole discretion and evidenced by the updating and initialing of
Schedule A by both parties hereto.

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         (b) Incentive Bonus. In addition to the Base Compensation, the Employee
may be eligible to receive an annual fiscal year incentive bonus with a maximum
annual amount of up to thirty percent (30%) of the Employee's then current Base
Compensation (the "Incentive Bonus"). The amount and timing of payment of the
Incentive Bonus shall be determined by the Board, in its sole discretion, and
will be based both upon accomplishment of goals provided to the Employee by the
Chairman and Chief Executive Officer from time to time and the achievement of
specific corporate milestones. The Board may elect to award the Incentive Bonus
to the Employee in cash or in the Employer's capital stock (at its then-current
fair market value).

      4. Vacation and Employee Benefits.

         (a) Vacation. The Employee shall be entitled to paid vacation equal to
four weeks annually. Vacation shall be taken at such times so as not to
interfere with the proper operation of the Employer's business.

         (b) Benefits Generally. The Employee shall be entitled to receive and
participate in such employee benefits as the Employer shall from time to time
determine to provide to its executives generally.

      5. Stock Incentives.

         (a) Options. Pursuant to the provisions of the Company's 1997 Stock
Option Plan, as may be amended from time to time (the "Plan"), and subject to
the approval by the Employer's Board of Directors, the Employer will grant to
the Employee an option to purchase 875,000 shares of its Common Stock ($.01 par
value) (the "Optioned Shares") at an exercise price equal to the fair market
value of the Employer's Common Stock as of the date of grant, which is currently
$0.20 per share. Of the Optioned Shares, options for 475,000 shares shall vest
in four equal installments on the anniversary of the Employee's date of hire in
accordance with and subject to all the terms and conditions of the Plan and a
separate stock option agreement. Further, options for the remaining 400,000
shares shall vest on the fourth anniversary of the Employee's date of hire, in
accordance with and subject to all the terms and conditions of the Plan and a
separate stock option agreement; provided, that such shares may receive
acceleration of vesting, subject to the determination of the Employer's Board of
Directors, in its sole discretion, upon the successful achievement of
performance goals to be mutually agreed to by the Employee and the Employer. In
the event of a Change of Control (as defined below), all of the unvested
Optioned Shares immediately shall vest, provided that the Employee is still
employed by the Employer on the date of such Change of Control.

         (b) Change of Control. For purposes of this Agreement "Change of
Control" shall mean the occurrence of one or more of the following events:

(i) any "person" (as such term is used in Sections 13(d) and 14(d)(2) of the
Securities Exchange Act of 1934, as amended (the "Exchange Act")) becomes a
"beneficial owner" (as such term is defined in Rule 13d-3 promulgated under the
Exchange Act) (other than the

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 Employer, any trustee or other fiduciary holding securities under an employee
 benefit plan of the Employer, or any corporation owned, directly or indirectly,
 by the stockholders of the Employer, in substantially the same proportions as
 their ownership of stock of the Employer), or any or group of persons acting in
 concert becomes a beneficial owner, directly or indirectly, of securities of
 the Employer, representing more than fifty percent (50%) of the combined voting
 power or fully diluted equity interest of the Employer's then outstanding
 equity securities, except as a result of a financing transaction where all
 proceeds are received directly by the Company that is not intended as a sale of
 the business of the Employer; or

 (ii) the stockholders of the Employer approve a merger or consolidation of the
 Employer with any other corporation or other entity, other than (A) a merger or
 consolidation which would result in the equity securities of the Employer
 outstanding immediately prior thereto continuing to represent (either by
 remaining outstanding or by being converted into equity securities of the
 surviving entity) fifty percent (50%) or more of the outstanding equity
 interest of the Employer or such surviving entity outstanding immediately after
 such merger or consolidation or (B) a merger or consolidation effected to
 implement a recapitalization of the Employer (or similar transaction) in which
 no "person" (as hereinabove defined) other than Employee acquires more than
 fifty percent (50%) of the equity interest of the Employer's then outstanding
 securities; or

 (iii) the stockholders of the Employer approve a plan of complete liquidation
 of the Employer or an agreement for the sale or disposition by the Employer of
 all or substantially all of the Employer's assets.

6. Description of Duties. During the term of this Agreement, the Employee shall
be the Chief Financial Officer and shall:

         (a) devote on a full time basis all necessary time, best efforts,
professional skills, attention and energies to the fulfillment of the regulatory
and quality assurance duties customarily associated with such position and the
accomplishment of the goals provided by the Chairman and Chief Executive Officer
of the Employer to the Employee from time to time; and

         (b) act in accordance herewith, and in all accounts be responsible and
responsive to, the Board of Directors and Chairman and CEO of Employer.

      7. General Services. During the term of this Agreement, the Employee
shall:

         (a) observe the Employer's policies and standards of conduct, as well
as customary standards of business conduct, including any standards prescribed
by law or regulation;

         (b) perform his duties hereunder in a manner that preserves and
protects the Employer's business reputation; and

         (c) do all things and render such services as may be necessary or
beneficial in carrying out any of the foregoing.

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      8. Non-Disclosure of Proprietary or Confidential Information and
Confidential Communications. For the purposes of this Section 8, the term
"Employer" shall include, and the protections granted the Employer hereunder
shall extend to, ATP Therapeutics, Inc., Biostream Therapeutics, Inc. (f/k/a
Zebra Pharmaceuticals, Inc.), and any other entities now or hereinafter
affiliated, acquired or created by the Employer. The Employee recognizes and
acknowledges that the marketing plans and business strategy, the particular
needs and application of such customers for diagnostic imaging techniques, the
Employer's proprietary computer software programs, trade secrets and any other
confidential and proprietary information concerning the business or affairs of
the Employer (including but not limited to marketing and business plans and
strategies, research protocols, procedures data, results, and cost information)
(hereinafter collectively referred to as the "Confidential Information")
constitute a valuable, proprietary, special and unique asset of the Employer's
business. The Employee further recognizes and acknowledges that any
communications, whether written, oral or otherwise, that the Employer or any of
the Employer's employees has with the Employer's existing or prospective
customers and clients and affiliated research institutions and scientists
regarding the Employer's business are extremely confidential (hereinafter the
"Confidential Communications"). The term Confidential Information shall exclude
any information that has been made public through no fault of the Employee.

      The Employee shall not, for any reason whatsoever, during or after the
termination of his employment with the Employer, use, disclose or allow access
to, for his own benefit or for that of another, the Confidential Information or
the Confidential Communications (or any part thereof) to any person, firm,
corporation, association or other entity for any reason or for any purpose
whatsoever.

      In the event of a breach or threatened breach by the Employee of the
provisions of this Section, the Employer shall be entitled to an injunction
restraining the Employee from so using, disclosing or allowing access to, in
whole or in part, the Confidential Information and the Confidential
Communications or from rendering any services to any person, firm, corporation,
association or other entity to whom the Confidential Information or the
Confidential Communications, in whole or in part, have been disclosed or are
threatened to be disclosed. Nothing herein shall be construed as prohibiting the
Employer from pursuing any other remedies available to the Employer for such
breach or threatened breach, including, but not limited to, the recovery of
damages and reasonable attorneys' fees from the Employee. In the event that the
Employer seeks an injunction against the Employee and is unsuccessful, the
Employer will reimburse the Employee his attorney's fees and expenses.

      Upon termination of this Agreement by either party for any reason, the
Employee shall return to the Employer any of the Confidential Information,
Confidential Communications, charts, company literature, reports, Employer
credit cards or other proprietary materials of the Employer then in the
Employee's possession and all other materials of the Employer which the Board of
Directors of the Employer requests the Employee to so return.

      This Section shall in all respects survive any termination of this
Agreement and shall remain in full force and effect thereafter. In the event
that any provision of this Section 8 shall conflict with any term or condition
of any other confidentiality agreement between the Employer

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and the Employee, then the more restrictive provision shall be deemed to apply
in order to accomplish the purposes of this Section 8 and such other agreements,
that being to protect the Employer's Confidential Information and Confidential
Communications.

      In the event of the Employee's breach of this Section 8, the Employee
shall immediately and irrevocably forfeit future payments under the Severance
Package as hereinafter defined in Section 15. Nothing in this paragraph shall be
construed to limit or cap the Employer's damages in the event of a breach of
this Section 8.

      9. Covenant Not to Compete: Non-solicitation of Employees and Customers.
For the purposes of this Section 9, the term "Employer" shall include, and the
protections granted the Employer hereunder shall extend to, ATP Therapeutics,
Inc., Biostream Therapeutics, Inc. (f/k/a Zebra Pharmaceuticals, Inc.), and any
other entities now or hereinafter affiliated, acquired or created by the
Employer. The Employee agrees that while employed by the Employer and for a
continuous period of one (1) year following the date of the termination of his
employment with the Employer either voluntarily without "Good Reason" or
involuntarily by the Company for "cause" (the "Restricted Period"), he shall not
(without the express prior written consent of the Board of Directors of the
Employer), directly or indirectly, compete with the Employer. In construing the
foregoing prohibition, the Employee shall be deemed to be competing with the
Employer if he shall become self-employed in, or accept employment with, consult
with, render services to or become associated with, own, manage, operate, join,
control, or participate in the ownership, management, operation, or control of,
or be connected in any material manner with, or directly or indirectly enter
into the employment of, or make a substantial investment in (other than as a
holder of not more than 3% of the total outstanding stock of a publicly held
company), any corporation, partnership, proprietorship or other type of business
organization or entity which engages in, any business (a "Competing Business")
involving the sale, distribution, development or research concerning diagnostic
molecular imaging of the myocardium or other lines of the Employer which
directly and materially competes with the product lines in or with which the
Employer is then currently involved.

      The Employee further agrees that, during his employment with the Employer
and during the Restricted Period, he shall not solicit any of the Employer's
employees, existing customers or prospective customers (of which the Employee is
then currently aware), affiliated research institutions or scientists, on behalf
of himself or any Competing Business.

      This Section 9 shall in all respects survive any termination of this
Agreement and shall remain in full force and effect during the Restricted
Period.

      In the event of the Employee's breach of this Section 9 during the
Restricted Period, the Employee shall immediately and irrevocably forfeit future
payments to the Employee under the Severance Package as hereinafter defined in
Section 15.

      10. Assignment of Rights. Any and all information, data, inventions,
discoveries, materials, notebooks and other work product which the Employee
conceives, develops or acquires during his employment with the Employer, which
directly or indirectly relates to work performed for the Employer, shall be the
sole and exclusive property of the Employer. The

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Employee shall promptly execute any and all documents necessary and take such
further actions as the Employer may deem necessary to assign any and all of the
Employee's right, title and interest in such property to the Employer.

      11. Intellectual Property. For the purposes of this Section 11, the term
"Employer" shall include, and the protections granted the Employer hereunder
shall extend to, ATP Therapeutics, Inc., Biostream Therapeutics, Inc. (f/k/a
Zebra Pharmaceuticals, Inc.), and any other entities now or hereinafter
affiliated, acquired or created by the Employer. During the Employee's
employment at the Employer, the Employee shall promptly assist with and execute
any and all applications, assignments or other documents which an officer or
director of the Employer shall deem necessary or useful in order to obtain and
maintain patent, trademark or other intellectual property protection for the
Employer's products or services. After the termination date of his employment
with the Employer, the Employee shall use reasonable efforts to assist the
Employer on intellectual property matters as they relate to his employment, and
the Employer shall reasonably compensate the Executive for his time and expense.

      12. Documents, Records, etc. All documents, records, data, apparatus,
equipment and other physical property, whether or not pertaining to Confidential
Information, which are furnished to the Employee by the Employer or are produced
by the Employee in connection with the Employee's employment will be and remain
the sole property of the Employer. The Employee will return to the Employer all
such materials and property as and when requested by the Employer. In any event,
and whether or not the Employer so specifically requests, the Employee will
return all such materials and property immediately upon termination of the
Employee's employment for any reason. The Employee will not retain any such
material or property or any copies thereof after such termination.

      13. Third-Party Agreements and Rights. The Employee hereby confirms that
he is not bound by the terms of any agreement with any previous employer or
other party which restricts in any way the Employee's use or disclosure of
information or the Employee's engagement in any business. The Employee
represents to the Employer that the Employee's execution of this Agreement, the
Employee's employment with the Employer and the performance of the Employee's
proposed duties for the Employer will not violate any obligations the Employee
may have to any such previous employer or other party. In the Employee's work
for the Employer, the Employee will not disclose or make use of any information
in violation of any agreements with or rights of any such previous employer or
other party, and the Employee will not bring to the premises of the Employer any
copies or other tangible embodiments of nonpublic information belonging to or
obtained from any such previous employer or other party.

      14. Restricted Activities. During the term of this Agreement, the Employee
shall not engage in any business activities or ventures outside of the business
activities of the Employer without the express prior written consent of the
Employer's Board; provided, however, that nothing in this Agreement shall be
construed as preventing the Employee from:

            (a) investing the Employee's assets in any company or other entity
in a manner not prohibited by Section 9 and in such form or manner as shall not
require any material

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activities on the Employee's part in connection with the operations or affairs
of the companies or other entities in which such investments are made; or

            (b) engaging in religious, charitable or other community or
non-profit activities that do not impair the Employee's ability to fulfill the
Employee's duties and responsibilities under this Agreement.

      15. Termination.

            A. Termination Without Cause.

                  (a) Notwithstanding anything herein to the contrary, this
Agreement may be terminated by either the Employer (by act of its Board) or the
Employee, at any time, without cause; provided, however, that the party desirous
of terminating this Agreement shall give the other party prior written notice of
such termination. In either event, the Employer may determine the Employee's
final day of employment hereunder. The date specified in any notice of
termination as the Employee's final day of employment shall be referred to
herein as the Termination Date.

                  (b) In the event that the Employer (by act of its Board)
terminates this Agreement without cause pursuant to this subsection (A) of
Section 15, or the Employee voluntarily resigns for Good Reason (defined below),
then the Employee shall be entitled to receive severance pay equal to the Base
Compensation rate as of the Termination Date in equal monthly installments for a
period of twelve (12) months (the "Post-Termination Period") from the
Termination Date (the "Severance Package"). The Employer also agrees to make
available to the Employee, as part of the Severance Package, continuation of
group health plan benefits to the extent authorized by and consistent with 29
U.S.C. Section 1161 et seq. (commonly known as "COBRA"), and any other benefits
the Employee is receiving as of the Termination Date with the cost of the
regular premium for such benefits shared in the same relative proportion by the
Employer and the Employee as in effect on the Termination Date.

                  (c) For purposes of this Agreement, "Good Reason" shall mean:

                        (i) a reduction of the Employee's Base Compensation
other than a reduction approved by the Employee in writing; or

                        (ii) a significant change in the Employee's title and/or
responsibilities which constitutes, when compared to the Employee's title and/or
responsibilities as of the Effective Date, a demotion; or

                        (iii) the relocation of the offices at which the
Employee is principally employed as of the Effective Date to a location more
than fifty (50) miles from such office, which relocation is not approved by the
Employee.

                  (d) In the event of the Employee's voluntary termination, then
the Employee shall, at the request of the CEO of the Employer, continue as an
employee of the

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Employer for an additional thirty (30) day period after the Termination Date for
the purpose of assisting the Employer in locating and training a suitable
replacement for the Employee. During such additional period, the Employee shall
be entitled to full compensation and benefits and the Employee shall continue to
be bound by all of the terms contained herein. Any such extended term shall
extend the Post-Termination Period by an equal number of days.

            B. Termination With Cause.

                  (a) The Employer (by act of its Board, CEO or President) may
terminate this Agreement immediately for "cause" by giving written notice to the
Employee. As used herein, the term "cause" shall mean the Employee's: (i) use of
illegal drugs which impairs the Employee's performance for the Employer; (ii)
willful or repeated failure or refusal to perform his duties hereunder after
written notice from the Company and a thirty (30) day opportunity to cure; (iii)
acts of dishonesty which materially adversely affect the Employer; (iv)
indictment for a felony or other crime, or (v) commission of acts involving
moral turpitude, fraud, embezzlement or misrepresentation. In the event that
this Agreement is terminated pursuant to this subsection (B), the Employee
forfeits and shall not be entitled to the Severance Package, or other benefits
or bonus of any kind whatsoever for any period after the Termination Date set
forth in the notice given by the Employer to the Employee.

            C. Disability.

                  (a) If the Employee shall be disabled so as to be unable to
perform the essential functions of the Employee's then existing position or
positions under this Agreement, the Employer may remove the Employee from any
responsibilities and/or reassign the Employee to another position with the
Employer during the period of such disability. If the period of disability
extends for more than six (6) months, the Employer may terminate the Employee's
employment without further liability on the part of the Employer, except that
the Employee shall be entitled to the Severance Package. The Employer may elect,
at its sole discretion, to purchase a disability insurance package for the
Employee. In the event that the Employer so elects to purchase a disability
insurance package and the Employee subsequently becomes entitled to payments of
the disability insurance benefit, any payments pursuant to the Severance
Package, as defined in this Section 15, or payments of salary by the Employer
will be reduced by the amount of the disability insurance benefit payments
received by the Employee.

            (b) If any question shall arise as to whether during any period the
Employee is disabled so as to be unable to perform the essential functions of
the Employee's then existing position or positions, the Employee may, and at the
request of the Employer shall, submit to the Employer a certification in
reasonable detail by a physician selected by the Employer, to whom the Employee
or the Employee's guardian has no reasonable objection, as to whether the
Employee is so disabled or how long such disability is expected to continue, and
such certification shall, for the purposes of this Agreement, be conclusive of
the issue. The Employee shall cooperate with any reasonable request of the
physician in connection with such certification. If such question shall arise
and the Employee shall fail to submit such certification, the Employer's
determination of such issue shall be binding on the Employee. Nothing in this
Section 15(c) shall be construed to waive the Employee's rights, if any, under
existing law

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<PAGE>

including, without limitation, the Family and Medical Leave Act of 1993, 29
U.S.C. 2601, et seq. and the Americans with Disabilities Act, 42 U.S.C. 12101 et
seq.

      D. Death or Retirement. The Employee's employment under this Agreement
will be deemed to have terminated without further liability on the part of the
Employer if the Employee dies or retires.

      E. Certain Termination Benefits. Unless otherwise specifically provided in
this Agreement or otherwise required by law, all compensation and benefits
payable to the Employee under this Agreement shall terminate on the date of
termination of the Employee's employment under this Agreement.

      F. No Right to Continuing Employment. The Employee agrees that nothing
contained in this Agreement shall be construed to give the Employee a right to
continuing employment beyond the Termination Date.

      16. Litigation and Regulatory Cooperation. During and after the Employee's
employment, the Employee shall cooperate fully with the Employer in the defense
or prosecution of any claims or actions now in existence or which may be brought
in the future against or on behalf of the Employer which relate to events or
occurrences that transpired while the Employee was employed by the Employer. The
Employee's full cooperation in connection with such claims or actions shall
include, but not be limited to, being available to meet with counsel to prepare
for discovery or trial and to act as a witness on behalf of the Employer at
mutually convenient times. During and after the Employee's employment, the
Employee also shall cooperate fully with the Employer in connection with any
investigation or review of any federal, state or local regulatory authority as
any such investigation or review relates to events or occurrences that
transpired while the Employee was employed by the Employer. The Employer shall
reimburse the Employee for any reasonable out-of-pocket expenses incurred in
connection with the Employee's performance of obligations pursuant to this
Section 16.

      17. Injunction. The Employee agrees that it would be difficult to measure
any damages caused to the Employer which might result from any breach by the
Employee of the promises set forth in Sections 8, 9 or 10, and that in any event
money damages would be an inadequate remedy for any such breach. Accordingly,
the Employee agrees that if the Employee breaches, or proposes to breach,
Sections 8, 9 or 10 of this Agreement, the Employer shall be entitled, in
addition to all other remedies that it may have, to an injunction or other
appropriate preliminary equitable relief to restrain any such breach without
showing or proving any actual damage to the Employer.

      18. No Assignment. The Employee acknowledges that the services to be
rendered by him pursuant to this Agreement are unique. Accordingly, the Employee
shall not assign any of his rights or delegate any of his duties or obligations
under this Agreement.

      19. Severability. Subject only to the reformation of time, geographical
and occupational limitations as set forth in Section 20 hereof, all of the terms
and provisions contained in this Agreement are severable and, in the event that
any portion or provision of this

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Agreement (including, without limitation, any portion or provision of any
section of this Agreement) shall to any extent be deemed unenforceable or
invalid by a court of competent jurisdiction, then the remainder of this
Agreement, or the application of such portion or provision in circumstances
other than those as to which it is so declared unenforceable or invalid, shall
not be affected thereby, and each portion and provision of this Agreement shall
be valid and enforceable to the fullest extent permitted by law.

      20. Reformation of Time Geographical and Occupational Limitations. In the
event that any provision in this Agreement is held to be unenforceable by a
court of competent jurisdiction because it exceeds the maximum time,
geographical or occupational limitations permitted by applicable law, then such
provision(s) shall be and hereby are reformed to the maximum time, geographical
and occupational limitations as may be permitted by applicable law.

      21. Massachusetts Law: Choice of Forum. This Agreement shall be governed,
construed and interpreted by, and in accordance with, the laws of the
Commonwealth of Massachusetts, without reference to its principles of conflicts
of laws. Any actions concerning enforcement of this Agreement or in any way
relating to the subject matter of this Agreement shall be litigated only in
Massachusetts state or federal courts of proper jurisdiction and venue. Each
party hereto expressly agrees to submit to such jurisdiction and venue for the
purposes of this Agreement. Notwithstanding the foregoing, the Employer may seek
to enforce the Employee's covenants described in Sections 8,9 and 10 hereof in
any jurisdiction and venue in which the Employee then resides, breaches or
threatens to breach such covenants.

      22. Entire Agreement. This Agreement constitutes the entire agreement of
the parties hereto, and replaces all prior agreements, promises, representations
and understandings between the Employer and the Employee whatsoever concerning
the limited subject matter hereof (other than the Stock Plan and any related
Stock Option Agreement entered into between the Employer and the Employee).
There are no other agreements, conditions or representations, oral or written,
express or implied, which form the basis for this Agreement.

      23. Modification. No waiver or modification of this Agreement or of any
covenant, condition, or limitation contained herein shall be valid unless in a
writing of subsequent date hereto and duly executed by the party to be charged
therewith.

      24. Section Headings. The section headings contained in this Agreement are
for convenience only, and shall in no manner be construed as part of this
Agreement.

      25. Waiver of Breach. The waiver by either party of a breach or violation
of any provision of this Agreement shall not operate as, or be construed to be,
a waiver of any subsequent breach thereof.

      26. Notices. Any and all notices required or permitted to be given under
this Agreement shall be sufficient if furnished in writing, sent by certified or
registered mail, return receipt requested to the party's address set forth in
the Prologue of this Agreement. Either party may furnish the other party with a
different address in writing pursuant to this Section 26.

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<PAGE>
      27. Counterparts. This Agreement may be executed in any number of
counterparts, each of which when so executed and delivered shall be taken to be
an original; but such counterparts shall together constitute one and the same
document.

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      IN WITNESS WHEREOF, the parties have executed this Agreement on the day
and year here above first written.

MOLECULAR INSIGHT PHARMACEUTICALS, INC.

By:_______________________
Name: David S. Barlow
Title: Chairman & CEO

/s/ Robert E. Gallahue Jr.
--------------------------
Robert E. Gallahue Jr.

                                       12
<PAGE>

                                   SCHEDULE A
            (As Amended from time to time pursuant to Paragraph 3(a))

                                Base Compensation
<TABLE>
<CAPTION>
Annual Rate of Base     Agreed to by Employee           Agreed to by Employer
   Compensation
<S>                     <C>                             <C>
$ 225,000.00
</TABLE>

(Must be initialed by both parties each time amended to be effective.)

Exhibit A - Incentive Stock Option Grant

                                       13<PAGE>

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

                                                                  Exhibit 10.12

                                LICENSE AGREEMENT

      This Agreement made as of the 25th day of October 1999, by and between
Nihon Medi-Physics Co. Ltd. (the "Licensor") and Biostream, Inc. (the
"Licensee"),

                                  WITNESSETH:

      WHEREAS Licensor conducted various clinical trials in Japan and has been
selling its BMIPP product, Cardiodine, for use in diagnosing myocardial ischemia
and infarction and as a result has collected and possesses substantial
information, know-how and data from such trials;

      WHEREAS Licensee has a patent on certain BMIPP product technology in the
United States;

      WHEREAS Licensee desires to utilize the Confidential Information (as
defined below) to [***********************************************************]
and production capability with respect to such technology in the United States;
and

      WHEREAS Licensee wishes to obtain non-exclusive license to use the
Confidential Information pursuant to the terms and conditions of this Agreement;

      NOW, THEREFORE, in consideration of the mutual promises herein contained,
and for other good and valuable consideration, the receipt of which is hereby
acknowledged, the parties agree as follows:

                                 I. Definitions

      A. "Additional Indication" shall mean the second or any subsequent
indication after the First Indication for the use of MyoImage for which Licensee
receives FDA approval.

      B. "BMIPP" shall mean Beta-methyl-iodo-phenyl-pentadecanoic acid, labeled
with Iodine-123.

      C. "Cardiodine" shall mean Licensors BMIPP product.

      D. "Confidential Information" shall mean all data submitted by Licensor to
the Ministry of Health and Welfare as of the date of this Agreement in
connection with Licensor's application for approval of Cardiodine.

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

      F. "First Indication" shall mean Licensee's use of MyoImage to diagnose
myocardial ischemia and infarction.

      G. "MyoImage" shall mean Licensee's BMIPP product.

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

      H. "Net Sales" shall mean all amounts actually received, directly or
indirectly, in respect of sales of MyoImage in the Territory by Licensee,
affiliates of Licensee, or any third parties to which Licensee may license, sell
or otherwise transfer or dispose of its rights to make or sell MyoImage in the
Territory less the following items:

      (1) customary trade, quantity, cash and prompt payment discounts and
non-affiliated brokers' or agents' commissions actually allowed and taken;

      (2) amounts repaid or credited by reason of rejection or return;

      (3) taxes levied on and/or other governmental charges made as to
production, sale, transportation, delivery or use and paid or collected by or on
behalf of Licensee;

      (4) costs of insurance and packing and charges for delivery or
transportation; and

      (5) rebates and price reductions or adjustments required by a law or
regulation.

      I. "Technology" shall mean BMIPP, Cardiodine and MyoImage collectively.

      J. "Territory" shall mean North America.

                             II. Licenses and Rights

      A. During the term of this Agreement, and subject to all the terms and
conditions stated herein, Licensor hereby grants Licensee the
[*************]right (the "License") to use the Confidential Information solely
for and in connection with [*************************], the marketing of
MyoImage, the conduct of all aspects of clinical trials of MyoImage, any
[**********************] regarding MyoImage and the formulation, production and
distribution of MyoImage within, the Territory including copying, translating
and distributing the Confidential Information in the Territory.

      B. Licensee shall be responsible at its sole cost and expense for
translating the Confidential Information into English. Licensor will cause its
employees to respond by telephone or in writing to inquiries Licensee may have
regarding the Confidential Information, provided that Licensor's employees shall
not he required to spend more than 3 employee working days in the aggregate in
assisting Licensee in this manner.

                       III. Warranties and Indemnification

   A. Licensor represents and warrants to Licensee as follows:

      1. Licensor has the right, power and authority to enter into this
Agreement and grant the rights and undertake the obligations specified herein.

                                       2

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

      2. To the best knowledge of Licensor, the information contained in the
Confidential Information was accurate as of the date of its submission to the
Ministry of Health and Welfare. No representation is made as to the validity or
ownership of any intellectual or industrial property rights inherent in the
Confidential Information.

      3. No authorization, consent or approval of, or filing with or notice to
any governmental or public body or authority, is necessary for the execution,
delivery and performance of this Agreement by Licensor.

      4. Neither the execution, delivery and performance of this Agreement by
Licensor nor Licensee's use of the Confidential Information pursuant to this
Agreement will conflict with or result in any violation or breach of any
agreement, instrument license, judgment, order, decree, statute, ordinance, rule
or regulation to which Licensor is a party or by which it is bound or which is
applicable to it or any of its assets.

                                  IV. Royalties

A. Amount of Royalties Owing

      1. In exchange for the License granted hereunder, Licensee shall pay to
Licensor the following royalties with respect to Net Sales for the First
Indication:

      a.    If Licensor provides Licensee with the Confidential
            Information, and Licensee is able to [********************
            *****************************************************] in
            connection with the approval of the use of MyoImage for
            the First Indication:                                           [*]%

      b.    With respect to the use of MyoImage for the First
            Indication, if the use of the Confidential Information
            results in Licensee's being allowed by the FDA to [****
            *******************************************************]        [*]%

      c.    With respect to the use of MyoImage for the First
            Indication, if the use of the Confidential Information
            results in Licensee's being allowed by the FDA to [****
            *******************************************************]        [*]%

      d.    With respect to the use of MyoImage for the First
            Indication, if the use of the Confidential Information
            results in Licensee's being allowed by the FDA to [****
            ******************************************************
            ****************]                                               [*]%

      e.    With respect to the use of MyoImage for the First
            Indication, if the use of the Confidential Information
            results in Licensee's being allowed by the FDA to [****
            ******************************************************
            ****************]                                               [*]%

                                       3

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

      f.    With respect to the use of MyoImage for the First Indication,
            if the use of the Confidential Information results in Licensee's
            being allowed by the FDA to [**********************************
            ***************************************************************
            *******************************]                                [*]%

     A Phase II or Phase III trial will be deemed to be "limited" if the FDA
specifies in writing that less than the usual standard Phase II or Phase III, as
the case may be, trial will be required. Within 30 days after Licensee receives
FDA approval to commercially market and sell MyoImage, Licensee shall deliver to
Licensor a statement [**********************************************************
*****************************], the royalty that will be due with respect to
ensuing Net Sales as a result and copies of all written communications from the
FDA with respect to the approval process.

      2. Licensee shall also pay to Licensor a royalty of [*]% of Net Sales of
MyoImage for any Additional Indication.

      B. Time and Method of Payment

      1. Following Licensee's first sale of MyoImage, Licensee shall make
written reports and royalty payments quarterly, within 30 days following each
March 31, June 30, September 30, and each December 31, or at such other times
as the parties may from time to time agree. Each report shall state the number,
basis of calculation, description and aggregate Net Sales of MyoImage during the
completed quarter for the First Indication and for each Additional Indication
and resulting calculation of royalty payments due Licensor for such completed
quarter.

      Licensee shall, as a condition of entering into any license or other
transfer or disposition of rights to make or sell MyoImage to a third party
require that such third party maintain records of sales and other information
equivalent to the records required to be maintained by Licensee hereunder, which
records shall be made available to Licensor for the purposes of calculating and
confirming royalty payments hereunder

      2. All royalty payments shall be in Japanese yen converted from US dollars
at the prevailing exchange rate and made by wire transfer pursuant to such
instructions as may be specified by Licensor from time to time.

      3. If any government or political subdivision requires Licensee to
withhold any tax or other amount with respect to the payment of royalties
hereunder, Licensee shall be deemed to have paid the full amount of the
royalties to Licensor and shall not be required to increase any royalty payments
to Licensor to compensate for such withholdings.

      4. Licensee shall keep records showing all operations that are subject to
this Agreement and shall maintain such results for a period of three years
following the expiration or earlier termination of this Agreement. Upon
reasonable notice to Licensee, Licensor shall have the right to inspect, or to
cause an accountant or other authorized agent or agents to inspect, Licensee's

                                       4

<PAGE>

records to verify that Licensee has paid all royalties owing to Licensor. The
foregoing inspection rights shall survive the expiration or earlier termination
of this Agreement for a period of three years. In the event that it is
established in the course of an inspection that Licensee has been paying less
than 95% of the royalties it is obliged to pay hereunder, in addition and
without prejudice to any other remedy available to Licensor, Licensee shall
reimburse Licensor for the cost of such inspection, Any confidential information
disclosed to Licensor during any such inspection shall be held in confidence by
Licensor, not used except in connection with the enforcement of this Agreement
and not disclosed to any third parties. Licensor shall take all other actions
reasonably necessary or advisable to protect and maintain Licensee's rights in
such information. Any third party agents of Licensor to whom such confidential
information is disclosed shall be required to enter written confidentiality or
nondisclosure agreements reasonably satisfactory to Licensee with respect to
Licensee's confidential information.

                          V. Confidential Information

      A. Licensee acknowledges that all Confidential Information is a valuable
asset of Licensor, the value of which would be substantially diminished or
destroyed by unauthorized disclosure.

      B. Licensee shall not disclose any Confidential Information to vendors,
customers, or other persons except in connection with its use of the
Confidential Information as provided herein (including filings with the FDA)
without the prior written consent of Licensor.

      C. Licensee shall enter into written confidentiality or nondisclosure
agreements with Licensee's employees, with vendors to Licensee, and with anyone
else to whom Confidential Information is disclosed.

      D. Licensee shall take all other actions reasonably necessary or advisable
to protect and maintain Licensor's rights in all Confidential Information. These
actions shall include, without limitation:

      1. Establishment and maintenance of reasonable security procedures at all
of Licensee's locations at which Confidential Information is kept or used;

      2. Informing Licensee's employees with access to Confidential Information
that Confidential Information is confidential, proprietary and secret;

      3. Informing Licensee's employees on a periodic basis of the importance of
maintaining the secrecy of all Confidential Information; and

      4. Such other actions as Licensee takes to protect its own confidential
materials and such actions as Licensor may reasonably request to maintain the
secrecy of all Confidential Information.

      E. Any information, technical data or know-how that (a) is already in
Licensee's possession at the time of its disclosure to Licensee, (b) is now or
becomes a part of the public

                                       5

<PAGE>

domain by virtue of a publication other than by or through the fault of Licensee
or any of its agents or employees, (c) is rightfully received from a third party
who has a right to disclose such information without restriction on disclosures
and without breach of this agreement or (d) is independently developed by
Licensee without use of Confidential Information shall not be deemed to be
Confidential Information.

                                 VI. Termination

      A. The term of this Agreement shall be from the date hereof until such
time as Licensee, its successors, affiliates, licensees and other transferees
cease to sell or distribute MyoImage in the Territory.

      B. This Agreement may be terminated (1) by mutual agreement; (2) by one
party upon the occurrence of a material breach of contract by the other party;
or (3) by one party upon bankruptcy, insolvency proceeding or similar event
affecting the other party.

      C. Each party hereto shall keep the other party informed of bona fide
reason or similar incidents which come to its attention with regard to this
Agreement, regardless of the origin of such report. Either party may rescind
this Agreement, with consent from the other party, which consent shall not be
unreasonably withheld, at any time prior to the official submission by the
Licensee of the Confidential Information to the FDA, but only for a bona fide
reason, which shall be limited to the definition below. A "bona fide reason"
shall mean (1) the occurrence of materially adverse results or revelations
concerning the use of Cardiodine that is likely to have an materially adverse
effect on the outcome of the FDA approval process for MyoImage; or (2) the
occurrence of materially adverse results during clinical trials of MyoImage; (3)
any other circumstances that would cause public disclosure of this Agreement or
the Confidential Information, that would have a materially adverse impact on
either party or either party's reputation. In the event that the parties do not
agree that an occurrence constitutes a bona fide reason, the parties will employ
the dispute resolution process in Section VII. Each party agrees to promptly
notify the other if a bona fide reason occurs.

      D. If NMP requests rescission of this Agreement for a bona fide reason,
Licensee shall be prohibited from utilizing and disclosing Confidential
Information prior to receipt of the written judgement of the arbitrators.

      E. Upon the expiration, termination, or rescission of this agreement
pursuant to section VI, A, B, C, hereof Licensee shall have no further right and
license to the Confidential Information, promptly return the Confidential
Information to NMP and continue to observe the obligations of Section V with
respect thereto.

                                  VII. General

                                       6

<PAGE>

      A. This Agreement constitutes the entire agreement of the parties with
respect to its subject matter, superseding all negotiations and prior agreements
between them with respect thereto.

      B. The failure of either party to enforce its rights or remedies under any
part of this Agreement shall not waive its right to enforce the same part at a
different time, or to enforce other parts of this Agreement.

      C. In the event that any provision of this Agreement shall be determined
to be unenforceable by any court of competent jurisdiction by reason of its
extending for too great a period of time or over too large a geographic area or
over too great a range of activities, it shall be interpreted to extend only
over the maximum period of time, geographic area or range of activities as to
which it may be enforceable.

      D. If any provision of this Agreement shall be determined to be invalid,
illegal or otherwise unenforceable by any court of competent jurisdiction, the
validity, legality and enforceability of the other provisions of this Agreement
shall not be affected thereby. Any invalid, illegal or unenforceable provision
of this Agreement shall be severable, and after any such severance, all other
provisions hereof shall remain in full force and effect.

      E. The Agreement shall be binding upon the parties and their respective
legal representatives, successors and assigns. Licensee may not assign its
rights hereunder without the prior written consent of Licensor.

      F. This Agreement may be executed in two or more counterparts, each of
which shall be considered an original but all of which together shall constitute
one and the same instrument.

      G. Licensor and Licensee are independent contractors and are not, and
shall not represent themselves as, principal and agent, partners or joint
venturers.

      H. This Agreement shall be governed by and construed and enforced in
accordance with the substantive laws of Japan.

      I. Any dispute arising out of, in connection with or in relation to any
provision of this Agreement shall be settled in accordance with the
then-existing Rules of Conciliation and Arbitration of the International Chamber
of Commerce. The arbitration shall be conducted by three arbitrators, one
selected by Licensee, one selected by Licensor, and the third selected by the
first two arbitrators. The arbitration shall be held in Tokyo and the proceeding
shall be conducted in Japanese if the party initiating the proceeding is
Licensee, and in New York and in the English language if the party initiating
the proceeding is Licensor. Any award or judgement shall be rendered by a
majority of the arbitrators and shall be in writing stating the reasons
therefor, and any award or judgement rendered may be entered in and shall be
enforceable by any court of competent jurisdiction.

                                       7

<PAGE>

      J. Licensee agrees that press releases and other public announcements to
be made by it with respect to this Agreement and the translation contemplated
hereby shall be subject to the prior approval of Licensor.

      K. If this Agreement is translated into another language before or after
execution, this English language version shall remain the governing version of
this Agreement.

      L. Any notice required or permitted hereunder shall be considered as duly
made and effective upon delivery if made in writing and delivered to the party
for which it is intended at the following address or fax number:

If to Licensor:                                If to Licensee:
1-13-5 Kudankira.                              160 Second Street
Chiyoda-Ku, Tokyo                              Cambridge, MA 02142
Fax No.: 81-3-3234-2551                        Fax No.: 617-492-5664
Attn.: Miki Kurami, Manager                    Attn: President

Notices delivered by fax shall be confirmed by copy delivered by air courier or
overnight mail service.

IN WITNESS WHEREOF, the parties have through their duly authorized
representatives executed this Agreement under seal as of the date first written
above.

                                                     NIHON MEDI-PHYSICS CO. LTD,

                                                     By: /s/ [ILLEGIBLE]
                                                        ------------------------

                                                     Title: President

                                                     BIOSTREAM, INC.

                                                     By: John W. Babich
                                                         -----------------------

                                                     Title: CEO, President

                                       8

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