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                                                                    EXHIBIT 10.3

NEITHER THIS SECURITY NOR THE SECURITIES INTO WHICH THIS SECURITY IS EXERCISABLE
HAVE  BEEN  REGISTERED  WITH  THE  SECURITIES  AND  EXCHANGE  COMMISSION  OR THE
SECURITIES   COMMISSION  OF  ANY  STATE  IN  RELIANCE  UPON  AN  EXEMPTION  FROM
REGISTRATION  UNDER THE  SECURITIES  ACT OF 1933,  AS AMENDED  (THE  "SECURITIES
ACT"),  AND,  ACCORDINGLY,  MAY NOT BE OFFERED  OR SOLD  EXCEPT  PURSUANT  TO AN
EFFECTIVE  REGISTRATION  STATEMENT  UNDER THE  SECURITIES  ACT OR PURSUANT TO AN
AVAILABLE  EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE  REGISTRATION
REQUIREMENTS  OF THE  SECURITIES  ACT AND IN ACCORDANCE  WITH  APPLICABLE  STATE
SECURITIES  LAWS AS  EVIDENCED BY A LEGAL  OPINION OF COUNSEL TO THE  TRANSFEROR
REASONABLY  ACCEPTABLE  TO THE COMPANY TO SUCH  EFFECT,  THE  SUBSTANCE OF WHICH
SHALL BE REASONABLY  ACCEPTABLE TO THE COMPANY.  THIS SECURITY MAY BE PLEDGED IN
CONNECTION  WITH A BONA FIDE MARGIN ACCOUNT WITH A REGISTERED  BROKER-DEALER  OR
OTHER LOAN WITH A FINANCIAL  INSTITUTION  THAT IS AN  "ACCREDITED  INVESTOR"  AS
DEFINED IN RULE 501(a) UNDER THE SECURITIES ACT.

                          COMMON STOCK PURCHASE WARRANT

                To Purchase __________ Shares of Common Stock of

                          eResource Capital Group, Inc.

     THIS COMMON STOCK  PURCHASE  WARRANT (the  "Warrant")  CERTIFIES  that, for
value received,  _____________ (the "Holder"),  is entitled,  upon the terms and
subject to the limitations on exercise and the conditions hereinafter set forth,
at any time on or after the  six-month  anniversary  of the date of  issuance of
this  Warrant  (the  "Initial  Exercise  Date")  and on or  prior  to the  third
anniversary  of the  Initial  Exercise  Date (the  "Termination  Date")  but not
thereafter,  to subscribe for and purchase from eResource Capital Group, Inc., a
corporation  incorporated  in the  State  of  Delaware  (the  "Company"),  up to
____________  shares (the "Warrant Shares") of Common Stock, par value $0.04 per
share, of the Company (the "Common  Stock").  The purchase price of one share of
Common Stock (the "Exercise  Price") under this Warrant shall be $____,  subject
to adjustment hereunder. The Exercise Price and the number of Warrant Shares for
which the  Warrant is  exercisable  shall be subject to  adjustment  as provided
herein.  Capitalized  terms used and not otherwise defined herein shall have the
meanings set forth in that certain Securities  Purchase Agreement (the "Purchase
Agreement"),  dated  October  ___,  2003,  among the Company and the  purchasers
signatory thereto.

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     1.  Title  to  Warrant.  Prior  to the  Termination  Date  and  subject  to
compliance with applicable laws and Section 7 of this Warrant,  this Warrant and
all rights  hereunder  are  transferable,  in whole or in part, at the office or
agency of the  Company by the Holder in person or by duly  authorized  attorney,
upon surrender of this Warrant  together with the Assignment Form annexed hereto
properly  endorsed.  The transferee shall sign an investment  letter in form and
substance reasonably satisfactory to the Company.

     2.  Authorization of Shares.  The Company covenants that all Warrant Shares
which may be issued upon the exercise of the purchase rights represented by this
Warrant will, upon exercise of the purchase rights  represented by this Warrant,
be duly authorized,  validly issued,  fully paid and nonassessable and free from
all taxes,  liens and charges in respect of the issue thereof  (other than taxes
in respect of any transfer occurring contemporaneously with such issue).

     3. Exercise of Warrant.

          (a) Exercise of the purchase rights represented by this Warrant may be
     made at any time or times on or after the Initial  Exercise  Date and on or
     before the  Termination  Date by delivery to the Company of a duly executed
     facsimile copy of the Notice of Exercise Form annexed hereto (or such other
     office or agency of the Company as it may designate by notice in writing to
     the registered  Holder at the address of such Holder appearing on the books
     of the Company);  provided, however, within 5 Trading Days of the date said
     Notice of Exercise  is  delivered  to the  Company,  the Holder  shall have
     surrendered this Warrant to the Company and the Company shall have received
     payment of the aggregate  Exercise Price of the shares thereby purchased by
     wire   transfer  or  cashier's   check  drawn  on  a  United  States  bank.
     Certificates  for shares  purchased  hereunder  shall be  delivered  to the
     Holder within the earlier of (i) 5 Trading Days after the date on which the
     Notice of Exercise  shall have been  delivered by facsimile  copy or (ii) 3
     Trading  Days from the  delivery  to the  Company of the Notice of Exercise
     Form by  facsimile  copy,  surrender  of this  Warrant  and  payment of the
     aggregate  Exercise  Price as set  forth  above  ("Warrant  Share  Delivery
     Date");  provided,  however, in the event the Warrant is not surrendered or
     the  aggregate  Exercise  Price is not  received  by the  Company  within 5
     Trading  Days  after the date on which  the  Notice  of  Exercise  shall be
     delivered by  facsimile  copy,  the Warrant  Share  Delivery  Date shall be
     extended to the extent such 5 Trading Day period is exceeded.  This Warrant
     shall be deemed to have been  exercised on the later of the date the Notice
     of Exercise is delivered to the Company by facsimile  copy and the date the
     Exercise  Price is received by the  Company.  The Warrant  Shares  shall be
     deemed to have been issued, and Holder or any other person so designated to
     be named  therein shall be deemed to have become a holder of record of such
     shares for all purposes,  as of the date the Warrant has been  exercised by
     payment to the Company of the Exercise  Price and all taxes  required to be
     paid by the Holder,  if any, pursuant to Section 5 prior to the issuance of
     such shares,  have been paid. If the Company fails to deliver to the Holder
     a certificate or certificates  representing  the Warrant Shares pursuant to
     this  Section 3(a) by the third  Trading Day  following  the Warrant  Share
     Delivery  Date,  then the  Holder  will  have the  right  to  rescind  such

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     exercise.  In addition to any other rights available to the Holder,  if the
     Company  fails to  deliver  to the  Holder a  certificate  or  certificates
     representing  the  Warrant  Shares  pursuant  to an  exercise  by the third
     Trading Day after the Warrant Share  Delivery  Date,  and if after such day
     the  Holder is  required  by its  broker  to  purchase  (in an open  market
     transaction or otherwise) shares of Common Stock to deliver in satisfaction
     of a sale by the Holder of the Warrant Shares which the Holder  anticipated
     receiving  upon such exercise (a "Buy-In"),  then the Company shall (1) pay
     in cash to the Holder the amount by which (x) the Holder's  total  purchase
     price (including  brokerage  commissions,  if any) for the shares of Common
     Stock so purchased  exceeds (y) the amount  obtained by multiplying (A) the
     number of Warrant  Shares that the  Company was  required to deliver to the
     Holder in  connection  with the  exercise  at issue  times (B) the price at
     which the sell order giving rise to such purchase  obligation was executed,
     and (2) at the option of the Holder,  either  reinstate  the portion of the
     Warrant and equivalent number of Warrant Shares for which such exercise was
     not  honored or deliver to the Holder the number of shares of Common  Stock
     that  would have been  issued  had the  Company  timely  complied  with its
     exercise and delivery  obligations  hereunder.  For example,  if the Holder
     purchases  Common Stock having a total purchase price of $11,000 to cover a
     Buy-In with respect to an attempted exercise of shares of Common Stock with
     an aggregate sale price giving rise to such purchase obligation of $10,000,
     under clause (1) of the immediately preceding sentence the Company shall be
     required to pay the Holder  $1,000.  The Holder  shall  provide the Company
     written notice  indicating the amounts  payable to the Holder in respect of
     the Buy-In,  together  with  applicable  confirmations  and other  evidence
     reasonably requested by the Company.  Nothing herein shall limit a Holder's
     right to pursue any other remedies available to it hereunder,  at law or in
     equity  including,  without  limitation,  a decree of specific  performance
     and/or  injunctive  relief with respect to the Company's  failure to timely
     deliver  certificates  representing shares of Common Stock upon exercise of
     the Warrant as required pursuant to the terms hereof.

          (b) If this Warrant  shall have been  exercised  in part,  the Company
     shall,  at  the  time  of  delivery  of  the  certificate  or  certificates
     representing Warrant Shares, deliver to Holder a new Warrant evidencing the
     rights of Holder to purchase the  unpurchased  Warrant Shares called for by
     this Warrant,  which new Warrant  shall in all other  respects be identical
     with this Warrant.

          (c) The Company shall not effect any exercise of this Warrant, and the
     Holder  shall not have the right to exercise  any portion of this  Warrant,
     pursuant to Section  3(a) or  otherwise,  to the extent  that after  giving
     effect to such  issuance  after  exercise,  the Holder  (together  with the
     Holder's  affiliates),  as set forth on the applicable  Notice of Exercise,
     would  beneficially  own in excess of 4.99% of the  number of shares of the
     Common Stock outstanding  immediately after giving effect to such issuance.
     For  purposes  of the  foregoing  sentence,  the number of shares of Common
     Stock beneficially owned by the Holder and its affiliates shall include the
     number of shares of Common  Stock  issuable  upon  exercise of this Warrant
     with respect to which the determination of such sentence is being made, but
     shall  exclude the number of shares of Common Stock which would be issuable
     upon (A) exercise of the  remaining,  nonexercised  portion of this Warrant
     beneficially  owned by the Holder or any of its affiliates and (B) exercise
     or  conversion  of the  unexercised  or  nonconverted  portion of any other
     securities  of  the  Company  (including,  without  limitation,  any  other

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     Warrants)  subject to a limitation on  conversion or exercise  analogous to
     the limitation  contained herein beneficially owned by the Holder or any of
     its affiliates. Except as set forth in the preceding sentence, for purposes
     of  this  Section  3(c),   beneficial  ownership  shall  be  calculated  in
     accordance  with Section  13(d) of the Exchange Act. To the extent that the
     limitation  contained in this Section 3(c) applies,  the  determination  of
     whether this Warrant is exercisable (in relation to other  securities owned
     by the Holder) and of which a portion of this Warrant is exercisable  shall
     be in the sole discretion of such Holder, and the submission of a Notice of
     Exercise shall be deemed to be such Holder's  determination of whether this
     Warrant is  exercisable  (in  relation  to other  securities  owned by such
     Holder) and of which portion of this Warrant is  exercisable,  in each case
     subject to such aggregate percentage limitation, and the Company shall have
     no obligation to verify or confirm the accuracy of such determination.  For
     purposes of this Section 3(c),  in  determining  the number of  outstanding
     shares of Common  Stock,  the Holder may rely on the number of  outstanding
     shares of Common Stock as reflected in (x) the  Company's  most recent Form
     10-Q  or  Form  10-K,  as  the  case  may  be,  (y) a  more  recent  public
     announcement  by the Company or (z) any other  notice by the Company or the
     Company's Transfer Agent setting forth the number of shares of Common Stock
     outstanding.  Upon the written or oral  request of the Holder,  the Company
     shall within two Trading  Days confirm  orally and in writing to the Holder
     the number of shares of Common  Stock then  outstanding.  In any case,  the
     number of  outstanding  shares of Common  Stock shall be  determined  after
     giving  effect to the  conversion or exercise of securities of the Company,
     including this Warrant,  by the Holder or its affiliates  since the date as
     of which such number of  outstanding  shares of Common Stock was  reported.
     The  provisions  of this Section 3(c) may be waived by the Holder upon,  at
     the  election  of the Holder,  not less than 61 days'  prior  notice to the
     Company,  and the  provisions of this Section 3(c) shall  continue to apply
     until such 61st day (or such later date, as  determined  by the Holder,  as
     may be specified in such notice of waiver).

          (d) If at any time  after one year from the date of  issuance  of this
     Warrant there is no effective Registration Statement registering the resale
     of the Warrant Shares by the Holder,  this Warrant may also be exercised at
     such time by means of a "cashless  exercise"  in which the Holder  shall be
     entitled to receive a certificate for the number of Warrant Shares equal to
     the quotient obtained by dividing [(A-B) (X)] by (A), where:

          (A)  = the Closing Price on the Trading Day immediately  preceding the
               date of such election;

          (B)  = the Exercise Price of the Warrants, as adjusted; and

          (X)  = the number of Warrant  Shares  issuable  upon  exercise  of the
               Warrants in accordance with the terms of this Warrant.

          (e)  Subject  to the  provisions  of  this  Section  3, if  after  the
     Effective Date each Closing Price for any fifteen  consecutive Trading Days
     (the "Measurement  Price")(such  period commencing only after the Effective
     Date) exceeds  $4.80,  subject to adjustment  for reverse and forward stock
     splits, stock dividends,  stock combinations and other similar transactions

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     of the  Common  Stock  that  occur  after the date of this  Agreement  (the
     "Threshold  Price"),  then the Company may, within two Trading Days of such
     period,  call for  cancellation  of all or any portion of this  Warrant for
     which a Notice  of  Exercise  has not yet been  delivered  (such  right,  a
     "Call").  To exercise this right, the Company must deliver to the Holder an
     irrevocable  written  notice  (a "Call  Notice"),  indicating  therein  the
     portion  of  unexercised  portion  of this  Warrant  to which  such  notice
     applies. If the conditions set forth below for such Call are satisfied from
     the period from the date of the Call Notice  through and including the Call
     Date (as defined  below),  then any portion of this Warrant subject to such
     Call  Notice for which a Notice of  Exercise  shall not have been  received
     from and after the date of the Call Notice will be  cancelled  at 6:30 p.m.
     (New York City time) on the 44th Trading Day after the date the Call Notice
     is received by the Holder (such date,  the "Call  Date").  Any  unexercised
     portion of this  Warrant to which the Call Notice does not pertain  will be
     unaffected  by such  Call  Notice.  In  furtherance  thereof,  the  Company
     covenants  and agrees  that it will  honor all  Notices  of  Exercise  with
     respect to Warrant  Shares  subject to a Call Notice that are tendered from
     the time of delivery of the Call Notice  through  6:30 p.m.  (New York City
     time) on the Call Date.  The  parties  agree  that any  Notice of  Exercise
     delivered  following a Call Notice shall first reduce to zero the number of
     Warrant  Shares subject to such Call Notice prior to reducing the remaining
     Warrant Shares available for purchase under this Warrant.  For example,  if
     (x) this Warrant then permits the Holder to acquire 100 Warrant Shares, (y)
     a Call  Notice  pertains to 75 Warrant  Shares,  and (z) prior to 6:30 p.m.
     (New  York  City  time) on the Call  Date the  Holder  tenders  a Notice of
     Exercise  in respect of 50  Warrant  Shares,  then (1) on the Call Date the
     right under this Warrant to acquire 25 Warrant Shares will be automatically
     cancelled,  (2) the  Company,  in the time and manner  required  under this
     Warrant,  will have issued and delivered to the Holder 50 Warrant Shares in
     respect of the exercises  following receipt of the Call Notice, and (3) the
     Holder  may,  until the  Termination  Date,  exercise  this  Warrant for 25
     Warrant  Shares  (subject to adjustment  as herein  provided and subject to
     subsequent  Call Notices).  Subject again to the provisions of this Section
     3, the Company may deliver  subsequent Call Notices for any portion of this
     Warrant for which the Holder shall not have delivered a Notice of Exercise.
     Notwithstanding  anything to the  contrary set forth in this  Warrant,  the
     Company may not deliver a Call Notice or require the  cancellation  of this
     Warrant (and any Call Notice will be void),  unless,  from the beginning of
     the 15 consecutive  Trading Days used to determine whether the Common Stock
     has achieved the Threshold Price through the Call Date, (i) the Measurement
     Price equals or exceeds the  Threshold  Price,  (ii) the Company shall have
     honored  in  accordance  with the  terms of this  Warrant  all  Notices  of
     Exercise  delivered  by 6:30 p.m.  (New York City  time) on the Call  Date,
     (iii) the  Registration  Statement  shall be  effective  as to all  Warrant
     Shares and the  prospectus  thereunder  available for use by the Holder for
     the resale all such Warrant  Shares (and the Company in good faith believes
     that such  effectiveness  shall continue  uninterrupted for the foreseeable
     future), (iv) the Common Stock shall be listed or quoted for trading on the
     Principal  Market (and the Company believes in good faith that such listing
     or quotation shall continue  uninterrupted for the foreseeable  future) and
     (v)  such  issuance  would  be  permitted  in full  without  violating  the
     limitations set forth in Section 3(c).

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     4.  No  Fractional   Shares  or  Scrip.  No  fractional   shares  or  scrip
representing  fractional  shares  shall  be  issued  upon the  exercise  of this
Warrant.  As to any fraction of a share which Holder would otherwise be entitled
to purchase  upon such  exercise,  the Company  shall pay a cash  adjustment  in
respect of such final fraction in an amount equal to such fraction multiplied by
the Exercise Price.

     5. Charges, Taxes and Expenses. Issuance of certificates for Warrant Shares
shall be made  without  charge to the  Holder for any issue or  transfer  tax or
other incidental expense in respect of the issuance of such certificate,  all of
which taxes and  expenses  shall be paid by the Company,  and such  certificates
shall be  issued  in the name of the  Holder  or in such name or names as may be
directed by the Holder;  provided,  however,  that in the event certificates for
Warrant  Shares are to be issued in a name  other  than the name of the  Holder,
this  Warrant  when  surrendered  for  exercise  shall  be  accompanied  by  the
Assignment Form attached hereto duly executed by the Holder; and the Company may
require, as a condition thereto, the payment of a sum sufficient to reimburse it
for any transfer tax incidental thereto.

     6. Closing of Books.  The Company will not close its  stockholder  books or
records in any  manner  which  prevents  the timely  exercise  of this  Warrant,
pursuant to the terms hereof.

     7. Transfer, Division and Combination.

          (a) Subject to compliance with any applicable  securities laws and the
     conditions set forth in Sections 1 and 7(e) hereof and to the provisions of
     Section  4.1 of  the  Purchase  Agreement,  this  Warrant  and  all  rights
     hereunder are  transferable,  in whole or in part,  upon  surrender of this
     Warrant at the  principal  office of the Company,  together  with a written
     assignment of this Warrant  substantially  in the form attached hereto duly
     executed by the Holder or its agent or attorney and funds sufficient to pay
     any  transfer  taxes  payable upon the making of such  transfer.  Upon such
     surrender  and, if required,  such  payment,  the Company shall execute and
     deliver a new Warrant or Warrants in the name of the  assignee or assignees
     and in the  denomination or  denominations  specified in such instrument of
     assignment,  and shall issue to the assignor a new Warrant  evidencing  the
     portion of this Warrant not so assigned, and this Warrant shall promptly be
     cancelled.  A Warrant,  if properly  assigned,  may be  exercised  by a new
     holder for the  purchase  of Warrant  Shares  without  having a new Warrant
     issued.

          (b) This Warrant may be divided or combined  with other  Warrants upon
     presentation hereof at the aforesaid office of the Company, together with a
     written notice specifying the names and denominations in which new Warrants
     are to be issued, signed by the Holder or its agent or attorney. Subject to
     compliance  with Section 7(a), as to any transfer  which may be involved in
     such division or  combination,  the Company shall execute and deliver a new
     Warrant or Warrants  in exchange  for the Warrant or Warrants to be divided
     or combined in accordance with such notice.

          (c) The Company  shall  prepare,  issue and deliver at its own expense
     (other than transfer  taxes) the new Warrant or Warrants under this Section
     7.

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          (d) The Company agrees to maintain, at its aforesaid office, books for
     the registration and the registration of transfer of the Warrants.

          (e) If, at the time of the  surrender  of this  Warrant in  connection
     with any transfer of this  Warrant,  the transfer of this Warrant shall not
     be registered  pursuant to an effective  registration  statement  under the
     Securities Act and under  applicable state securities or blue sky laws, the
     Company may require,  as a condition of allowing such transfer (i) that the
     Holder or transferee of this  Warrant,  as the case may be,  furnish to the
     Company a written  opinion  of  counsel  (which  opinion  shall be in form,
     substance  and scope  customary  for  opinions  of  counsel  in  comparable
     transactions  and reasonably  acceptable to the Company) to the effect that
     such transfer may be made without registration under the Securities Act and
     under applicable state securities or blue sky laws, (ii) that the holder or
     transferee  execute and deliver to the Company an investment letter in form
     and substance acceptable to the Company and (iii) that the transferee be an
     "accredited  investor"  as defined  in Rule  501(a)  promulgated  under the
     Securities Act.

     8. No Rights as Shareholder  until Exercise.  This Warrant does not entitle
the Holder to any voting rights or other rights as a shareholder  of the Company
prior to the exercise hereof. Upon the surrender of this Warrant and the payment
of the  aggregate  Exercise  Price  (or by means of a  cashless  exercise),  the
Warrant  Shares so purchased  shall be and be deemed to be issued to such Holder
as the record  owner of such  shares as of the close of business on the later of
the date of such surrender or payment.

     9. Loss, Theft, Destruction or Mutilation of Warrant. The Company covenants
that upon receipt by the Company of evidence  reasonably  satisfactory  to it of
the  loss,  theft,  destruction  or  mutilation  of this  Warrant  or any  stock
certificate  relating  to the  Warrant  Shares,  and in case of  loss,  theft or
destruction,  of indemnity or security reasonably  satisfactory to it (which, in
the case of the  Warrant,  shall not include the posting of any bond),  and upon
surrender and cancellation of such Warrant or stock  certificate,  if mutilated,
the Company  will make and deliver a new  Warrant or stock  certificate  of like
tenor  and  dated  as of such  cancellation,  in lieu of such  Warrant  or stock
certificate.

     10. Saturdays, Sundays, Holidays, etc. If the last or appointed day for the
taking of any action or the  expiration of any right  required or granted herein
shall be a Saturday, Sunday or a legal holiday, then such action may be taken or
such right may be exercised on the next succeeding day not a Saturday, Sunday or
legal holiday.

     11. Adjustments of Exercise Price and Number of Warrant Shares.

          (a) Stock Splits,  etc. The number and kind of securities  purchasable
     upon the exercise of this  Warrant and the Exercise  Price shall be subject
     to adjustment from time to time upon the happening of any of the following.
     In case the Company  shall (i) pay a dividend in shares of Common  Stock or
     make a distribution in shares of Common Stock to holders of its outstanding
     Common Stock, (ii) subdivide its outstanding  shares of Common Stock into a
     greater number of shares,  (iii) combine its  outstanding  shares of Common
     Stock into a smaller  number of shares of Common  Stock,  or (iv) issue any
     shares of its capital stock in a reclassification of the Common Stock, then

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     the number of Warrant  Shares  purchasable  upon  exercise of this  Warrant
     immediately  prior  thereto  shall be adjusted so that the Holder  shall be
     entitled  to  receive  the kind  and  number  of  Warrant  Shares  or other
     securities  of the Company  which it would have owned or have been entitled
     to receive had such Warrant been  exercised in advance  thereof.  Upon each
     such  adjustment  of the  kind  and  number  of  Warrant  Shares  or  other
     securities of the Company which are purchasable hereunder, the Holder shall
     thereafter  be entitled to purchase  the number of Warrant  Shares or other
     securities  resulting from such adjustment at an Exercise Price per Warrant
     Share or other  security  obtained by  multiplying  the  Exercise  Price in
     effect immediately prior to such adjustment by the number of Warrant Shares
     purchasable  pursuant  hereto  immediately  prior  to such  adjustment  and
     dividing by the number of Warrant Shares or other securities of the Company
     resulting  from  such  adjustment.  An  adjustment  made  pursuant  to this
     paragraph shall become  effective  immediately  after the effective date of
     such event retroactive to the record date, if any, for such event.

          (b) Anti-Dilution Provisions. During the Exercise Period, the Exercise
     Price shall be subject to adjustment  from time to time as provided in this
     Section  11(b).  In the event that any  adjustment of the Exercise Price as
     required  herein results in a fraction of a cent, such Exercise Price shall
     be rounded up or down to the nearest cent.

               (i)  Adjustment  of Exercise  Price.  If and whenever the Company
          issues or sells,  or in accordance  with Section  11(b)(ii)  hereof is
          deemed to have  issued  or sold,  any  shares  of  Common  Stock for a
          consideration per share of less than the then Exercise Price or for no
          consideration  (such  lower  price,  the "Base  Share  Price" and such
          issuances  collectively,  a "Dilutive  Issuance"),  then, the Exercise
          Price shall be reduced to equal the Base Share Price.  Such adjustment
          shall  be made  whenever  shares  of  Common  Stock  or  Common  Stock
          Equivalents are issued.

               (ii) Effect on Exercise Price of Certain Events.  For purposes of
          determining  the adjusted  Exercise  Price under Section 11(b) hereof,
          the following will be applicable:

                    (A)  Issuance  of Rights or  Options.  If the Company in any
               manner issues or grants any warrants,  rights or options, whether
               or not immediately  exercisable,  to subscribe for or to purchase
               Common Stock or Common Stock Equivalents  (such warrants,  rights
               and options to purchase Common Stock or Common Stock  Equivalents
               are hereinafter referred to as "Options") and the effective price
               per share for which Common Stock is issuable upon the exercise of
               such Options is less than the Exercise  Price  ("Below Base Price
               Options"),  then the  maximum  total  number  of shares of Common
               Stock  issuable  upon the  exercise  of all such Below Base Price
               Options (assuming full exercise, conversion or exchange of Common
               Stock  Equivalents,  if  applicable)  will, as of the date of the
               issuance or grant of such Below Base Price Options,  be deemed to
               be  outstanding  and to have been  issued and sold by the Company
               for such price per share and the maximum consideration payable to
               the  Company  upon  such  exercise   (assuming   full   exercise,

                                       8

<PAGE>

               conversion   or  exchange  of  Common   Stock   Equivalents,   if
               applicable)  will be deemed to have been received by the Company.
               For purposes of the preceding sentence,  the "effective price per
               share for which  Common  Stock is issuable  upon the  exercise of
               such Below Base Price  Options" is determined by dividing (i) the
               total  amount,  if any,  received or receivable by the Company as
               consideration for the issuance or granting of all such Below Base
               Price Options,  plus the minimum  aggregate  amount of additional
               consideration,  if any,  payable to the Company upon the exercise
               of all such Below Base Price Options, plus, in the case of Common
               Stock  Equivalents  issuable upon the exercise of such Below Base
               Price  Options,   the  minimum  aggregate  amount  of  additional
               consideration  payable upon the exercise,  conversion or exchange
               thereof at the time such Common  Stock  Equivalents  first become
               exercisable,  convertible  or  exchangeable,  by (ii) the maximum
               total number of shares of Common Stock issuable upon the exercise
               of all such Below Base Price Options (assuming full conversion of
               Common Stock Equivalents,  if applicable).  No further adjustment
               to the  Exercise  Price will be made upon the actual  issuance of
               such  Common  Stock  upon the  exercise  of such Below Base Price
               Options or upon the  exercise,  conversion  or exchange of Common
               Stock Equivalents issuable upon exercise of such Below Base Price
               Options.

                    (B) Issuance of Common Stock Equivalents.  If the Company in
               any manner issues or sells any Common Stock Equivalents,  whether
               or not  immediately  convertible  (other  than where the same are
               issuable  upon the exercise of Options) and the  effective  price
               per share for which Common Stock is issuable upon such  exercise,
               conversion or exchange is less than the Exercise Price,  then the
               maximum total number of shares of Common Stock  issuable upon the
               exercise,  conversion  or  exchange  of  all  such  Common  Stock
               Equivalents  will,  as of the date of the issuance of such Common
               Stock  Equivalents,  be deemed to be outstanding and to have been
               issued and sold by the  Company  for such price per share and the
               maximum  consideration  payable to the Company upon such exercise
               (assuming full  exercise,  conversion or exchange of Common Stock
               Equivalents,  if applicable) will be deemed to have been received
               by the Company.  For the purposes of the preceding sentence,  the
               "effective  price per share for which  Common  Stock is  issuable
               upon such  exercise,  conversion  or exchange" is  determined  by
               dividing (i) the total amount,  if any, received or receivable by
               the Company as consideration for the issuance or sale of all such
               Common Stock  Equivalents,  plus the minimum  aggregate amount of
               additional consideration, if any, payable to the Company upon the
               exercise,  conversion or exchange thereof at the time such Common
               Stock  Equivalents  first  become  exercisable,   convertible  or
               exchangeable,  by (ii) the  maximum  total  number  of  shares of
               Common Stock  issuable upon the exercise,  conversion or exchange
               of all such Common Stock  Equivalents.  No further  adjustment to

                                       9

<PAGE>

               the Exercise Price will be made upon the actual  issuance of such
               Common Stock upon exercise, conversion or exchange of such Common
               Stock Equivalents.

                    (C) Change in Option Price or Conversion Rate. If there is a
               change at any time in (i) the amount of additional  consideration
               payable to the Company upon the exercise of any Options; (ii) the
               amount  of  additional  consideration,  if  any,  payable  to the
               Company upon the  exercise,  conversion or exchange of any Common
               Stock  Equivalents;  or (iii) the rate at which any Common  Stock
               Equivalents are convertible into or exchangeable for Common Stock
               (in each such case,  other than under or by reason of  provisions
               designed to protect  against  dilution),  the  Exercise  Price in
               effect  at the  time of such  change  will be  readjusted  to the
               Exercise  Price  which would have been in effect at such time had
               such  Options  or  Common  Stock  Equivalents  still  outstanding
               provided for such  changed  additional  consideration  or changed
               conversion  rate,  as the  case  may be,  at the  time  initially
               granted, issued or sold.

                    (D)  Calculation of  Consideration  Received.  If any Common
               Stock, Options or Common Stock Equivalents are issued, granted or
               sold for cash, the  consideration  received therefor for purposes
               of  this  Warrant  will be the  amount  received  by the  Company
               therefor,    before   deduction   of   reasonable    commissions,
               underwriting discounts or allowances or other reasonable expenses
               paid or incurred by the Company in connection with such issuance,
               grant or sale. In case any Common Stock,  Options or Common Stock
               Equivalents are issued or sold for a consideration part or all of
               which shall be other than cash,  the amount of the  consideration
               other than cash  received by the Company  will be the fair market
               value of such  consideration,  except  where  such  consideration
               consists of securities, in which case the amount of consideration
               received by the Company  will be the fair market  value  (closing
               bid  price,  if traded on any  market)  thereof as of the date of
               receipt.  In case any  Common  Stock,  Options  or  Common  Stock
               Equivalents   are  issued  in  connection   with  any  merger  or
               consolidation in which the Company is the surviving  corporation,
               the  amount of  consideration  therefor  will be deemed to be the
               fair market  value of such portion of the net assets and business
               of the  non-surviving  corporation  as is  attributable  to  such
               Common Stock,  Options or Common Stock  Equivalents,  as the case
               may be. The fair  market  value of any  consideration  other than
               cash  or  securities  will be  determined  in  good  faith  by an
               investment  banker  or  other  appropriate   expert  of  national
               reputation  selected by the Company and reasonably  acceptable to
               the holder  hereof,  with the costs of such appraisal to be borne
               by the Company.

                    (E)   Exceptions   to   Adjustment   of   Exercise    Price.
               Notwithstanding  the foregoing,  no adjustment will be made under
               this  Section  11(b) in respect of (1) the granting of options to
               employees,  officers, directors or key consultants of the Company

                                       10

<PAGE>

               pursuant to any stock  option plan duly  adopted by a majority of
               the non-employee members of the Board of Directors of the Company
               or a majority  of the  members  of a  committee  of  non-employee
               directors  established for such purpose, (2) upon the exercise of
               or conversion of any Common Stock  Equivalents  or Options issued
               and  outstanding  on the Original  Issue Date,  provided that the
               securities  have not been amended  since the date of the Purchase
               Agreement  except as a result of the Purchase  Agreement,  or (3)
               acquisitions  or strategic  investments,  the primary  purpose of
               which is not to raise capital.

               (iii) Minimum  Adjustment of Exercise Price. No adjustment of the
          Exercise  Price  shall  be made in an  amount  of less  than 1% of the
          Exercise  Price in  effect at the time such  adjustment  is  otherwise
          required to be made, but any such lesser  adjustment  shall be carried
          forward  and  shall  be made at the time  and  together  with the next
          subsequent  adjustment which, together with any adjustments so carried
          forward, shall amount to not less than 1% of such Exercise Price.

     12. Reorganization,  Reclassification, Merger, Consolidation or Disposition
of Assets.  In case the Company shall  reorganize  its capital,  reclassify  its
capital stock,  consolidate or merge with or into another corporation (where the
Company  is not the  surviving  corporation  or where  there  is a change  in or
distribution with respect to the Common Stock of the Company), or sell, transfer
or otherwise dispose of its property,  assets or business to another corporation
and,  pursuant to the terms of such  reorganization,  reclassification,  merger,
consolidation or disposition of assets,  shares of common stock of the successor
or acquiring  corporation,  or any cash,  shares of stock or other securities or
property of any nature whatsoever  (including  warrants or other subscription or
purchase  rights) in addition to or in lieu of common stock of the  successor or
acquiring  corporation ("Other Property"),  are to be received by or distributed
to the holders of Common  Stock of the  Company,  then the Holder shall have the
right thereafter to receive,  at the option of the Holder,  (a) upon exercise of
this Warrant, the number of shares of Common Stock of the successor or acquiring
corporation  or of the Company,  if it is the surviving  corporation,  and Other
Property   receivable   upon   or   as  a   result   of   such   reorganization,
reclassification,  merger, consolidation or disposition of assets by a Holder of
the  number of shares of Common  Stock for which  this  Warrant  is  exercisable
immediately  prior to such event or (b) cash equal to the value of this  Warrant
as determined in accordance  with the Black Scholes option pricing  formula.  In
case of any such  reorganization,  reclassification,  merger,  consolidation  or
disposition of assets, the successor or acquiring corporation (if other than the
Company) shall expressly assume the due and punctual  observance and performance
of each and every  covenant and  condition  of this Warrant to be performed  and
observed by the  Company  and all the  obligations  and  liabilities  hereunder,
subject to such  modifications  as may be deemed  appropriate  (as determined in
good faith by  resolution  of the Board of Directors of the Company) in order to
provide for  adjustments of Warrant Shares for which this Warrant is exercisable
which shall be as nearly  equivalent as practicable to the adjustments  provided
for in this Section 12. For purposes of this  Section 12,  "common  stock of the
successor or acquiring  corporation"  shall include stock of such corporation of

                                       11

<PAGE>

any class which is not  preferred as to dividends or assets over any other class
of stock of such  corporation  and which is not subject to redemption  and shall
also include any evidences of indebtedness,  shares of stock or other securities
which  are  convertible  into  or  exchangeable  for  any  such  stock,   either
immediately  or upon the  arrival  of a  specified  date or the  happening  of a
specified  event and any warrants or other  rights to subscribe  for or purchase
any such stock.  The  foregoing  provisions  of this Section 12 shall  similarly
apply to successive reorganizations,  reclassifications, mergers, consolidations
or disposition of assets.

     13. Voluntary Adjustment by the Company. The Company may at any time during
the term of this Warrant  reduce the then current  Exercise  Price to any amount
and for any period of time deemed  appropriate  by the Board of Directors of the
Company.

     14. Notice of  Adjustment.  Whenever the number of Warrant Shares or number
or kind of securities or other  property  purchasable  upon the exercise of this
Warrant or the Exercise Price is adjusted, as herein provided, the Company shall
give  notice  thereof to the  Holder,  which  notice  shall  state the number of
Warrant Shares (and other securities or property)  purchasable upon the exercise
of this  Warrant  and the  Exercise  Price of such  Warrant  Shares  (and  other
securities or property) after such  adjustment,  setting forth a brief statement
of the facts  requiring  such  adjustment  and setting forth the  computation by
which such adjustment was made.

     15. Notice of Corporate Action. If at any time:

          (a) the Company shall take a record of the holders of its Common Stock
     for  the  purpose  of  entitling  them  to  receive  a  dividend  or  other
     distribution,  or any right to subscribe  for or purchase any  evidences of
     its indebtedness,  any shares of stock of any class or any other securities
     or property, or to receive any other right, or

          (b) there  shall be any capital  reorganization  of the  Company,  any
     reclassification or recapitalization of the capital stock of the Company or
     any  consolidation or merger of the Company with, or any sale,  transfer or
     other  disposition  of all or  substantially  all the  property,  assets or
     business of the Company to, another corporation or,

          (c) there shall be a voluntary or involuntary dissolution, liquidation
     or winding up of the Company;

then, in any one or more of such cases,  the Company shall give to Holder (i) at
least 20 days' prior written  notice of the date on which a record date shall be
selected for such dividend,  distribution or right or for determining  rights to
vote  in  respect  of  any  such   reorganization,   reclassification,   merger,
consolidation, sale, transfer, disposition,  liquidation or winding up, and (ii)
in the case of any such reorganization, reclassification, merger, consolidation,
sale, transfer, disposition, dissolution, liquidation or winding up, at least 20
days'  prior  written  notice of the date when the same shall take  place.  Such
notice in accordance  with the foregoing  clause also shall specify (i) the date
on which  any such  record  is to be taken  for the  purpose  of such  dividend,
distribution  or right,  the date on which the holders of Common  Stock shall be
entitled  to any such  dividend,  distribution  or  right,  and the  amount  and
character  thereof,  and  (ii)  the  date  on  which  any  such  reorganization,

                                       12

<PAGE>

reclassification,    merger,   consolidation,   sale,   transfer,   disposition,
dissolution,  liquidation  or winding  up is to take place and the time,  if any
such  time is to be fixed,  as of which the  holders  of Common  Stock  shall be
entitled to exchange  their  Warrant  Shares for  securities  or other  property
deliverable upon such disposition,  dissolution, liquidation or winding up. Each
such written  notice shall be  sufficiently  given if addressed to Holder at the
last address of Holder  appearing  on the books of the Company and  delivered in
accordance with Section 17(d).

     16.  Authorized  Shares.  The Company  covenants that during the period the
Warrant is outstanding,  it will reserve from its authorized and unissued Common
Stock a  sufficient  number of shares to provide for the issuance of the Warrant
Shares upon the exercise of any purchase rights under this Warrant.  The Company
further  covenants  that its  issuance of this  Warrant  shall  constitute  full
authority  to its  officers  who are charged  with the duty of  executing  stock
certificates  to execute and issue the  necessary  certificates  for the Warrant
Shares upon the exercise of the purchase rights under this Warrant.  The Company
will take all such  reasonable  action as may be  necessary  to assure that such
Warrant  Shares  may be issued  as  provided  herein  without  violation  of any
applicable law or regulation,  or of any requirements of the Trading Market upon
which the Common Stock may be listed.

     Except  and to the  extent as waived or  consented  to by the  Holder,  the
Company shall not by any action,  including,  without  limitation,  amending its
certificate of incorporation or through any reorganization,  transfer of assets,
consolidation,  merger,  dissolution,  issue or sale of  securities or any other
voluntary action, avoid or seek to avoid the observance or performance of any of
the terms of this  Warrant,  but will at all times in good  faith  assist in the
carrying  out of all such terms and in the taking of all such  actions as may be
necessary  or  appropriate  to protect the rights of Holder as set forth in this
Warrant against  impairment.  Without  limiting the generality of the foregoing,
the Company will (a) not increase the par value of any Warrant  Shares above the
amount payable therefor upon such exercise immediately prior to such increase in
par value,  (b) take all such action as may be necessary or appropriate in order
that the Company may  validly  and  legally  issue fully paid and  nonassessable
Warrant  Shares upon the  exercise  of this  Warrant,  and (c) use  commercially
reasonable  efforts to obtain all such  authorizations,  exemptions  or consents
from any public regulatory body having jurisdiction  thereof as may be necessary
to enable the Company to perform its obligations under this Warrant.

     Before  taking any action which would result in an adjustment in the number
of Warrant  Shares for which this  Warrant  is  exercisable  or in the  Exercise
Price, the Company shall obtain all such  authorizations or exemptions  thereof,
or consents  thereto,  as may be necessary  from any public  regulatory  body or
bodies having jurisdiction thereof.

     17. Miscellaneous.

          (a) Jurisdiction. All questions concerning the construction, validity,
     enforcement  and  interpretation  of this Warrant  shall be  determined  in
     accordance with the provisions of the Purchase Agreement.

                                       13

<PAGE>

          (b)  Restrictions.  The Holder  acknowledges  that the Warrant  Shares
     acquired upon the exercise of this Warrant,  if not  registered,  will have
     restrictions upon resale imposed by state and federal securities laws.

          (c)  Nonwaiver  and  Expenses.  No course of  dealing  or any delay or
     failure to exercise any right hereunder on the part of Holder shall operate
     as a waiver of such right or otherwise prejudice Holder's rights, powers or
     remedies, notwithstanding all rights hereunder terminate on the Termination
     Date.  If the  Company  willfully  and  knowingly  fails to comply with any
     provision of this  Warrant,  which  results in any material  damages to the
     Holder, the Company shall pay to Holder such amounts as shall be sufficient
     to cover any costs and expenses  including,  but not limited to, reasonable
     attorneys'  fees,  including  those of appellate  proceedings,  incurred by
     Holder in  collecting  any  amounts  due  pursuant  hereto or in  otherwise
     enforcing any of its rights, powers or remedies hereunder.

          (d)  Notices.  Any  notice,  request  or other  document  required  or
     permitted to be given or  delivered  to the Holder by the Company  shall be
     delivered  in  accordance  with  the  notice  provisions  of  the  Purchase
     Agreement.

          (e) Limitation of Liability.  No provision  hereof,  in the absence of
     any  affirmative  action by Holder to  exercise  this  Warrant or  purchase
     Warrant  Shares,  and no enumeration  herein of the rights or privileges of
     Holder,  shall give rise to any liability of Holder for the purchase  price
     of any  Common  Stock or as a  stockholder  of the  Company,  whether  such
     liability is asserted by the Company or by creditors of the Company.

          (f) Remedies.  Holder,  in addition to being  entitled to exercise all
     rights granted by law, including  recovery of damages,  will be entitled to
     specific  performance of its rights under this Warrant.  The Company agrees
     that  monetary  damages  would not be  adequate  compensation  for any loss
     incurred by reason of a breach by it of the  provisions of this Warrant and
     hereby  agrees to waive the defense in any action for specific  performance
     that a remedy at law would be adequate.

          (g) Successors  and Assigns.  Subject to applicable  securities  laws,
     this Warrant and the rights and obligations evidenced hereby shall inure to
     the benefit of and be binding  upon the  successors  of the Company and the
     successors and permitted assigns of Holder.  The provisions of this Warrant
     are intended to be for the benefit of all Holders from time to time of this
     Warrant  and shall be  enforceable  by any such Holder or holder of Warrant
     Shares.

          (h)  Amendment.  This  Warrant  may  be  modified  or  amended  or the
     provisions  hereof  waived with the written  consent of the Company and the
     Holder.

          (i) Severability.  Wherever  possible,  each provision of this Warrant
     shall be  interpreted  in such  manner as to be  effective  and valid under
     applicable law, but if any provision of this Warrant shall be prohibited by
     or invalid under applicable law, such provision shall be ineffective to the
     extent  of  such  prohibition  or  invalidity,   without  invalidating  the
     remainder of such provisions or the remaining provisions of this Warrant.

                                       14

<PAGE>

          (j)  Headings.   The  headings  used  in  this  Warrant  are  for  the
     convenience of reference  only and shall not, for any purpose,  be deemed a
     part of this Warrant.

                              ********************

                                       15

<PAGE>

     IN WITNESS  WHEREOF,  the Company has caused this Warrant to be executed by
its officer thereunto duly authorized.

Dated:  October __, 2003
                                     ERESOURCE CAPITAL GROUP, INC.

                                     By:  ____________________________________
                                          Name:
                                          Title:

<PAGE>

                               NOTICE OF EXERCISE

To:      eResource Capital Group, Inc.

     (1) The undersigned  hereby elects to purchase  ________  Warrant Shares of
eResource  Capital  Group,  Inc.  pursuant to the terms of the attached  Warrant
(only if exercised in full),  and tenders herewith payment of the exercise price
in full, together with all applicable transfer taxes, if any.

     (2) Payment shall take the form of (check applicable box):

          [ ] in lawful money of the United States; or

               [ ] the  cancellation  of such  number  of  Warrant  Shares as is
               necessary, in accordance with the formula set forth in subsection
               3(d), to exercise this Warrant with respect to the maximum number
               of Warrant Shares  purchasable  pursuant to the cashless exercise
               procedure set forth in subsection 3(d).

     (3) Please  issue a  certificate  or  certificates  representing  said
Warrant  Shares  in the  name of the  undersigned  or in such  other  name as is
specified below:

                    ________________________________________

The Warrant Shares shall be delivered to the following:

                    ________________________________________

                    ________________________________________

                    ________________________________________

     (4) Accredited  Investor.  The  undersigned is an "accredited  investor" as
defined  in  Regulation  D  promulgated  under the  Securities  Act of 1933,  as
amended.

                              [PURCHASER]

                              By: ______________________________
                              Name:
                              Title:

                              Dated:  ________________________

<PAGE>

                                 ASSIGNMENT FORM

                    (To assign the foregoing warrant, execute
                   this form and supply required information.
                 Do not use this form to exercise the warrant.)

     FOR VALUE RECEIVED,  the foregoing Warrant and all rights evidenced thereby
are hereby assigned to

_______________________________________________ whose address is

_______________________________________________________________.

_______________________________________________________________

                                      Dated:  ______________, _______

                  Holder's Signature: _____________________________

                  Holder's Address:   _____________________________

                                      _____________________________

Signature Guaranteed:  ___________________________________________

NOTE: The signature to this  Assignment Form must correspond with the name as it
appears on the face of the Warrant,  without  alteration or  enlargement  or any
change whatsoever,  and must be guaranteed by a bank or trust company.  Officers
of corporations and those acting in a fiduciary or other representative capacity
should file proper evidence of authority to assign the foregoing Warrant.Exhibit 4.5

                     ART ADVANCED RESEARCH TECHNOLOGIES INC.

                                     - and -

                            GENERAL ELECTRIC COMPANY

--------------------------------------------------------------------------------

                     SOFTSCAN COMMERCIAL ALLIANCE AGREEMENT

--------------------------------------------------------------------------------

                              October ______, 2002

<PAGE>

                     SOFTSCAN commercial alliance AGREEMENT

THIS AGREEMENT is made as of October _______, 2002.

BETWEEN:

            ART ADVANCED RESEARCH TECHNOLOGIES INC., a Canadian corporation
            having a principal place of business at 2300 Alfred-Nobel Blvd.,
            Saint-Laurent, Quebec, H4S 2A4, Canada ("ART")

                                     - and -

            GENERAL ELECTRIC COMPANY ("GE"), a New York corporation (acting
            primarily through its GE Medical Systems ("GEMS") division) having
            an office and place of business at 3000 North Grandview Boulevard,
            Waukesha WI, 53188 (both collectively referred to herein as "GE")

RECITALS:

A.    ART carries on the business of developing and producing optical imaging
      products and optical diagnostic and screening technologies, including the
      ART SoftScan Product;

B.    GE carries on the business of, among other things, developing, marketing,
      manufacturing and selling medical technology and products;

C.    The Parties both desire to enter into this Agreement to govern their
      relationship with respect to the development, marketing, manufacturing,
      sales, distribution and customer service of the ART SoftScan Product;

NOW THEREFORE in consideration of the premises and of the mutual covenants and
conditions hereinafter set forth, and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the Parties,
intending to be legally bound, hereby covenant and agree as contained in this
Agreement (the receipt and adequacy of which consideration with respect to each
of the Parties is hereby mutually admitted), as follows:

                                   ARTICLE 1
                  DEFINITIONS AND PRINCIPLES OF INTERPRETATION

1.1   Recitals Correct

The parties hereby acknowledge and declare that the foregoing recitals are true
and correct in substance and in fact.

                                                                               1
<PAGE>

1.2   Definitions

Wherever used in this Agreement, unless there is something in the subject matter
or context inconsistent therewith, and unless otherwise defined herein, the
following terms shall have the following meanings:

      "Affiliate(s)" means any corporation or other entity or acquired business
      which controls, is controlled by or is under common control with a Party
      to this Agreement. A corporation or other entity, as applicable, shall be
      regarded as in control of another corporation or other entity if it owns
      or directly or indirectly controls at least fifty percent (50%) of the
      voting stock of the other corporation or ownership of the maximum amount
      permitted under local laws or regulations in those countries where fifty
      percent (50%) ownership by a foreign entity is not permitted (i) in the
      absence of the ownership of at least fifty percent (50%) of the voting
      stock of a corporation or (ii) in the case of a non-corporate entity, if
      it possesses, directly or indirectly, the power to direct or cause the
      direction of the management and policies of such corporation or
      non-corporate entity, as applicable;

      "Agreement" means this agreement entitled "SoftScan Commercial Alliance
      Agreement";

      "ART" has the meaning given to such term in the Preamble of this
      Agreement;

      "ART Background Technology" means any and all Technology, excluding ART
      SoftScan Technology, which: (i) is related to and useful for the Program
      Purpose; (ii) may be provided by ART to GE for the Program Purpose; and
      (iii) is owned by or licensed to ART;

      "ART SoftScan Intellectual Property Rights" means Intellectual Property
      Rights, owned by or licensed to ART relating exclusively to the ART
      SoftScan Product, including the ART SoftScan Trade-marks. ART SoftScan
      Intellectual Property Rights shall include the ART SoftScan Intellectual
      Property Rights licensed to ART under any license agreements
      [CONFIDENTIAL] patent rights for its inventions related to time domain
      technology, and for use only with time domain based devices, all coupling
      and other adjunct devices and consumables including those listed patents
      listed in Schedule "A" to [CONFIDENTIAL];

      "ART SoftScan Product" means ART's optical imaging device which uses time
      domain based technology to detect and diagnose cancerous lesions or any
      other biological abnormalities of the human body;

      "ART SoftScan Technical Information" means all Technical Information owned
      by or licensed to ART relating exclusively to the ART SoftScan Product.
      ART SoftScan Technical Information shall include the ART SoftScan
      Technical Information licensed to ART under any license agreements
      including certain technology [CONFIDENTIAL];

      "ART SoftScan Technology" means all ART SoftScan Intellectual Property
      Rights and the ART SoftScan Technical Information, but excluding ART
      Background Technology;

                                                                               2
<PAGE>

      "Art SoftScan Trade-marks" means the trade-marks, trade-names, brands,
      trade dress, business names, uniform resource locators, domain names, tag
      lines, designs, graphics, logos and other commercial symbols and indicia
      of origin whether registered or not and any goodwill associated therewith
      owned by ART relating exclusively to the ART SoftScan Product;

      "Business Day" means any day of the year, other than a Saturday, Sunday or
      any day on which the banks are required or authorised to close in
      Montreal, Quebec or in the United States of America;

      "Change in Control" means: (i) consolidation or merger of a Party with or
      into any entity (other than a consolidation or merger with or into an
      Affiliate); (ii) the sale, transfer or other disposition of all or
      substantially all of a Party's assets in a single transaction or a series
      of related transactions (other than to an Affiliate); and (iii) the
      acquisition by any entity, or group of entities acting in concert (other
      than an entity or group of entities that is an Affiliate or Affiliates),
      of beneficial ownership of fifty percent (50%) or more (or such lesser
      amount that constitutes control) of the outstanding voting securities or
      other voting equity interests of such Party in a single transaction or a
      series of related transactions;

      "Claims" has the meaning given to such term in Section 14.1 of this
      Agreement;

      "Clinical Phase" has the meaning given to such term in Section 4.1 of this
      Agreement;

      "Commercial Viability" and "Commercially Viable" mean that the net revenue
      generated for each Party from the sale of the ART SoftScan Product, as
      calculated on an annual basis, is sufficient to provide each Party with a
      profit margin (after taking into consideration all appropriate associated
      costs) favorably comparable to the average profit margin (after taking
      into consideration all appropriate associated costs) of the other products
      of such Party's product portfolio.

      "Confidential Information" means confidential information which may be
      modified, amended or improved from time to time, whether in oral, written,
      graphic, machine readable or physical form, provided that tangible
      confidential information is labelled as "Confidential" or "Proprietary"
      and that confidential information disclosed orally is summarized in
      monthly Progress Reports. Confidential Information shall not include the
      following:

            (a)   information which is in the public domain at the time of the
                  Receiving Party's receipt from the Disclosing Party;

            (b)   information which, after the Receiving Party's (as defined
                  below) receipt from the Disclosing Party (as defined below)
                  becomes part of the public domain through no act or fault of
                  the Receiving Party;

            (c)   information which the Receiving Party can show was lawfully in
                  its possession prior to the receipt from the Disclosing Party
                  evidenced by appropriate documentation;

                                                                               3
<PAGE>

            (d)   information which at the time it was received in good faith by
                  the Receiving Party from an independent Person was lawfully in
                  possession of such Person and under no obligation of secrecy;

            (e)   information which is released from the provisions of this
                  Agreement by the written authorisation of the Parties;

            (f)   information that was independently developed by employees or
                  agents of the Receiving Party without the benefit of
                  Confidential Information provided by the Disclosing Party;

            (g)   information that is published incident to patent application
                  prosecution; and

            (h)   information which is disclosed by National Broadcasting
                  Company or any of its Affiliates in the ordinary course of
                  their business as a broadcaster, provided that such disclosure
                  does not result from a breach by the Receiving Party of its
                  obligations under this Agreement.

      Notwithstanding the aforementioned definition of Confidential Information,
      any and all information received by the ART Program Manager pursuant to
      this Agreement is deemed to be Confidential Information, unless otherwise
      marked by GE as "Non-Confidential";

      "Confidentiality Agreement" means the confidentiality agreement between
      the Parties dated [CONFIDENTIAL];

      "Disclosing Party" has the meaning given to such term in Section 11.2 of
      this Agreement;

      "Dispute" has the meaning given to such term in Section 5.3 of this
      Agreement;

      "Effective Date" has the meaning given to such term in Section 3.3 of this
      Agreement;

      "Escalation Notice" has the meaning given to such term in Section 5.3 of
      this Agreement;

      "Full Production Phase" has the meaning given to such term in Section 4.1
      of this Agreement;

      "GE" has the meaning given to such term in the Preamble of this Agreement;

      "GE Facility" means GE's production and manufacturing plants wherever
      situated;

      "GEMS" has the meaning given to such term in the Preamble of this
      Agreement;

      "GE Trade-marks" means the trade-marks, trade-names, brands, trade dress,
      business names, uniform resource locators, domain names, tag lines,
      designs, graphics, logos and

                                                                               4
<PAGE>

      other commercial symbols and indicia of origin whether registered or not
      and any goodwill associated therewith owned by GE and its Affiliates;

      "GST" means all goods and services taxes, sales taxes levied by the
      Federal government of Canada, value added taxes or multi-stage taxes and
      all provincial sales taxes integrated with such federal taxes, assessed,
      rated or charged upon or payable by either Party or its Affiliates in
      respect of this Agreement;

      "Insolvency Act" means the Bankruptcy and Insolvency Act (Canada), the
      Companies' Creditors Arrangement Act (Canada), the Winding-up and
      Restructuring Act (Canada) or any other statute of any relevant
      jurisdiction including the United States of America relating to
      bankruptcy, insolvency, stay of creditor remedies, moratorium, compromise,
      arrangement, extension, adjustment or reorganization of debts or other
      liabilities, liquidation, winding-up or dissolution;

      "Intellectual Property Rights" means all proprietary legal rights,
      including all trade secrets, know-how, copyrights, trade-marks, mask
      works, industrial designs, trade-names and patents (including inventor's
      certificates) and applications therefor throughout the world, and any
      other form of right by which a Party may effectively exclude another Party
      from performing any of the acts specified in this definition; provided,
      however, in the case of an Intellectual Property Rights under which a
      Party is a licensee or is otherwise a permitted user, such rights qualify
      hereunder if and only if the Party has the right to grant sublicenses or
      rights equivalent thereto to the other Party encompassed by the Program
      under this Agreement;

      "Master Research and Development Alliance Agreement" has the meaning given
      to such term in Section 3.3;

      "[CONFIDENTIAL];

      "Notice" has the meaning given to such term in Section 16.10 of this
      Agreement;

      "Party" means either or both of GE or ART whichever is applicable, and
      "Parties" means both GE and ART;

      "Permanent Member" has the meaning given to such term in Section 5.2 of
      this Agreement;

      "Phase" means each of the Clinical, Pre-Production and Full Production
      Phases as each is set out in further detail in this Agreement, and
      "Phases" shall mean all of them;

      "Person" means any individual, legal personal representative, corporation,
      company, body corporate, partnership, limited partnership, joint venture,
      syndicate, trust, unincorporated organisation, the Crown or any agency or
      instrumentality thereof, Regulatory Authority or any other entity
      recognised by law, howsoever designated or constituted;

                                                                               5
<PAGE>

      "Pre-Production Phase" has the meaning given to such term in Section 4.1
      of this Agreement;

      "Program" means all of the Phases;

      "Program Manager" means a person appointed by either of the Parties under
      Section 5.1;

      "Program Purpose" has the meaning given to such term in Article 2;

      "Progress Reports" has the meaning given to such term in Section 5.5 of
      this Agreement;

      "Receiving Party" has the meaning given to such term in Section 11.2 of
      this Agreement;

      "Regulatory Approval(s)" means the approvals necessary for the clinical
      testing, manufacturing or commercial sale of products to be obtained from
      any Regulatory Authority;

      "Regulatory Authority" means any applicable governmental, administrative
      or regulatory entity, department, authority, commission, tribunal,
      official or agency;

      "SoftScan Steering Committee" has the meaning given to such term in
      Section 5.2 of this Agreement;

      "SoftScan System" means each individual ART SoftScan Product produced
      under this Agreement;

      "Subscription Agreement" has the meaning given to such term in Section
      3.3;

      "Technology" means Technical Information and Intellectual Property Rights;

      "Technical Information" means and includes information, data, conceptions,
      know-how and related technical knowledge including: all Confidential
      Information; all trade secrets and other proprietary information, public
      information, non-proprietary know-how and invention disclosures; any data
      and information of a scientific, technical or business nature regardless
      of its form; all documented research, developmental, demonstration or
      engineering work; all other blueprints, patterns, flow charts, equipment,
      parts lists, procedures, formulas, descriptions, related instructions,
      manuals, records and procedures; ideas, innovations, discoveries,
      inventions, processes, improvements, enhancements, modifications,
      technological developments, methods, techniques, systems, designs,
      artwork, drawings, plans, specifications, software, documentation, works
      of authorship, whether or not susceptible to protection under any
      Intellectual Property Rights;

      "Term" has the meaning given to such term in Section 3.1;

      "Third Party(ies)" means any Person, party or entity other than ART, GE,
      and their respective Affiliates, officers and employees. By way of example
      and not by limitation,

                                                                               6
<PAGE>

      Third Parties shall include any and all consultants, professional
      advisors, agents, contractors or other third parties engaged by GE or ART
      or their respective Affiliates under this Agreement; and

      "Transfer" means any event pursuant to which the property, rights or
      obligations of the affected Party under this Agreement are or are
      attempted to be sold, disposed of, assigned, pledged, hypothecated,
      charged, mortgaged, encumbered, sublicensed or transferred and includes
      any transfer by operation of law.

1.3   Principles of Interpretation

      (i)   "Business Day" - If under this Agreement any payment or calculation
            is to be made or any other action is to be taken on a day which is
            not a Business Day, that payment or calculation is to be made, and
            that other action is to be taken, as applicable, on or as of the
            next day that is a Business Day.

      (ii)  "Currency" - In this Agreement, unless otherwise stated herein, all
            references to currency shall be references to the lawful currency of
            the United States of America.

      (iii) "Capitalized Terms" - All capitalized terms defined herein are
            equally applicable to both the singular and plural forms of such
            terms.

      (iv)  "Gender and Number; Extending Meanings" - Any reference in this
            Agreement to gender shall include all genders, and words importing
            the singular number only shall include the plural and vice versa.

      (v)   "Headings" - The provision of a table of contents, the division of
            this Agreement into articles, sections, subsections and other
            subdivisions and the insertion of headings are for convenience of
            reference only and shall not affect or be utilised in the
            construction of interpretation of this Agreement.

      (vi)  "References" - In this Agreement, references to "hereof", "hereto",
            and "hereunder" and similar expressions mean and refer to this
            Agreement taken as a whole, and not to any particular article,
            section, subsection or other subdivision; "Article", "Section",
            "Subsection" or other subdivision of this Agreement followed by a
            number means and refers to the specified article, section,
            subsection or other subdivision of this Agreement, and "including"
            means "including without limitation" and is not to be construed to
            limit any general statement which it follows to the specific or
            similar items or matters immediately following it.

      (vii) "Statutory References" - Unless expressly stated to the contrary,
            any references in this Agreement to any law, by-law, rule,
            regulation, order or act of any government, governmental body or
            other Regulatory Authority shall be construed as a reference thereto
            as enacted as of the Effective Date as such law, by-law, rule,
            regulation, order or act may be amended, re-enacted or superseded
            from time to time.

                                                                               7
<PAGE>

1.4   Jurisdiction

This Agreement shall be construed in accordance with the laws of the State of
New York, and shall be treated in all respects as a contract entered into under
New York law. The Parties intend and agree that the law of the State of New York
shall apply despite any choice-of-law statute, rule, or precedent that would
apply the law of any other jurisdiction.

1.5   Language

The Parties confirm that it is their wish that this Agreement, as well as any
other documents relating to this Agreement, including notices, schedules and
authorisations, have been and shall be drawn up in the English language only.
Les signataires confirment leur volonte que la presente convention, de meme que
tous les documents s'y rattachant, y compris tout avis, annexe et autorisation,
soient rediges en anglais seulement.

                                   ARTICLE 2
                                     PURPOSE

Subject to applicable regulatory approvals and the provisions and conditions set
forth in this Agreement, the Parties acknowledge and agree that it is their
decision to develop and commercialise the ART SoftScan Product (the "Program
Purpose"). The Parties shall pursue this Program Purpose in Phases by entering
into this agreement that outlines the overall responsibilities of the Parties
for each Phase of the Program. A successful achievement of the Program Purpose
requires the successful completion of the following steps: developing product
prototypes and clinical procedures; clinically testing such prototypes and
procedures; obtaining the Regulatory Approvals required to test, manufacture and
commercialize the ART SoftScan Product; manufacturing, marketing, distributing
and offering for sale commercial embodiments of the ART SoftScan Product; and
identifying commercial applications for the ART SoftScan Product. Accordingly,
the Parties have decided to enter into this Agreement which generally prescribes
the Parties' respective responsibilities during each Phase of the Program. In
support of the SoftScan Product, GE Medical Systems shall make available to
ART's program manager reasonable access to GE's internal experts in the areas of
manufacturing, marketing, sales, promotion and distribution with the objective
of developing a successful product launch. The Parties also agree that the
success of the Program is dependent upon both Parties working to maximize the
benefit that can be achieved from each SoftScan Product by optimizing the
combination of engineering, design, distribution and manufacturing.

                                   ARTICLE 3
                                      TERM

3.1   Term

The term of this Agreement will be for an initial term of [CONFIDENTIAL] years
from the Effective Date and for renewal terms as hereinafter provided (the
"Term").

                                                                               8
<PAGE>

3.2   Renewal

This Agreement will automatically renew for additional terms of [CONFIDENTIAL]
years each unless either Party shall have given the other Party at least sixty
(60) days prior Notice of its election not to renew this Agreement prior to the
expiration of the Term.

3.3   Conditions Precedent

This Agreement shall not be effective until the Parties have executed
concurrently this Agreement, the subscription agreement between GE and ART,
dated the even date hereof (the "Subscription Agreement") and the master
research and development alliance agreement between GE and ART, dated the even
date hereof (the "Master Research and Development Alliance Agreement"), which
date shall be the effective date of this Agreement (the "Effective Date"). These
three agreements are to be signed concurrently as they relate to one and the
same business commitment.

                                   ARTICLE 4
                           GENERAL PROGRAM CONDITIONS

4.1   SoftScan Program

To achieve the Program Purpose, the Parties shall engage in the following Phases
and any other such phases that may be subsequently identified and agreed to by
the Parties as beneficial to implementing and achieving the Program Purpose:

      (i)   Clinical Phase - A clinical phase, the terms and conditions of this
            clinical phase shall be as prescribed in Article 6 (the "Clinical
            Phase");

      (ii)  Pre-Production Phase - A pre-production phase, the terms and
            conditions of which are as prescribed in Article 7 (the
            "Pre-Production Phase"); and

      (iii) Full Production Phase - A full production phase, the terms and
            conditions of which are as prescribed in Article 8 (the "Full
            Production Phase").

The Parties acknowledge and agree that the commencement of each of the
Pre-Production Phase and the Full Production Phase is dependent upon a
successful completion of the immediately preceding Phase and that such
immediately preceding Phase shall be deemed to be successfully completed upon
agreement between the Parties, in respect of the Clinical Phase, as provided for
in Section 6.5 and, in respect of the Pre-Production Phase, as provided for in
Section 7.6.

The Parties acknowledge and agree that this Agreement provides the basis for the
relationship between the Parties and that more detailed responsibilities will
need to be further outlined and agreed to as additional information in support
of the Program Purpose becomes available to the Parties.

4.2   Costs

Except as otherwise or expressly provided in this Agreement and any other
agreement between the Parties, each Party shall pay all costs and expenses that
it incurs in authorising, preparing,

                                                                               9
<PAGE>

executing and performing this Agreement, including all fees and expenses of its
respective legal counsel, investment bankers, brokers, accountants or other
representatives or consultants.

4.3   Taxes

Each Party shall bear all taxes, duties, levies, and other similar charges (and
any related interest and penalties), however designated, imposed against it or
its Affiliates as a result of the existence or operation of this Agreement
including, but not limited to, any such amounts which either Party is required
to withhold or deduct from any payments to the other Party. For greater
certainty, each Party is responsible for and shall pay directly to the
appropriate taxing authorities all sales, use, consumption and transfer taxes,
registration charges, transfer fees and GST applicable to it in respect of this
Agreement and, upon the reasonable request of the other Party, the paying Party
shall furnish proof of such payment.

4.4   Public Announcements

The Parties shall adhere to the following restrictions relating to public
announcements concerning this Agreement and its implementation:

      (i)   General Announcements - Subject to other terms of this Agreement, no
            Party nor any Affiliate of a Party shall issue or cause the
            publication of any press release or other announcement with respect
            to this Agreement or its implementation without the prior
            consultation and approval of the other Party, except as may be
            required by any applicable law or as may otherwise be permitted
            hereunder, provided, however, that any such approval shall not be
            unreasonably withheld or delayed and that each Party may provide
            such information to its legal or financial advisors after obtaining
            appropriate confidentiality agreements with such advisors. ART
            hereby agrees that any reference that is made to GE in any press
            release or other announcement initiated or caused by ART shall be
            limited to the use of the GE name in a factual statement, and that
            the GE logo shall not be used without the prior written consent of
            GE, to be granted by GE in its sole discretion;

      (ii)  Disclosure Under Applicable Law - Either Party may make any public
            statement or issue any press release with respect to this Agreement
            where necessary to comply with requirements of any applicable law or
            as required by the order or judgement of a court or tribunal of
            competent jurisdiction. If any such statement or release is so
            required, or the Parties mutually agree to such statement or
            release, the Party making such disclosure shall consult with the
            other Party prior to making such statement or release and the
            Parties shall use all reasonable efforts, acting in good faith, to
            agree upon a text for such statement or release which is
            satisfactory to both;

      (iii) Other References - Notwithstanding the foregoing, the Parties may
            otherwise agree to make additional announcements concerning this
            Agreement and the transactions contemplated therein in other
            materials; and

      (iv)  Copies of the Agreement - No Party shall deliver a copy of this
            Agreement or any part to any Third Party without the prior written
            consent of the other Party unless

                                                                              10
<PAGE>

            and only to the extent that such disclosure is, in the opinion of
            such Party's counsel, required by applicable law.

4.5   Debarred or Disqualified Third Parties

      Each Party hereby represents and warrants that it shall be responsible for
      ensuring that no Third Party that has been: (i) debarred under the
      provisions of the Generic Drug Enforcement Act of 1992, 21 U.S.C. ss.
      335a(a) and (b); (ii) disqualified as a testing facility under the
      provisions of 21 C.F.R. Part 58, Subpart K; or (iii) disqualified as a
      clinical investigator under the provisions of 21 C.F.R. ss. 312.70, will
      be hired on such Party's behalf in connection with the Program.

                                   ARTICLE 5
                           SOFTSCAN STEERING COMMITTEE

5.1   Program Management.

The Parties shall each appoint a Program Manager. The Program Managers shall be
responsible for managing the Program, including: (i) approval of all
transmittals and receipt of Confidential Information; (ii) authorisation of all
requests, proposals, responses or change orders that affect the Program; and
(iii) submission and acceptance, respectively, of evaluation units and
documentation during the Program. The Program Managers will manage all
interactions within their respective Party and shall be copied on all
communications. The name, e-mail address, phone number, fax number, and mailing
address for each of the Program Managers shall be exchanged between Parties. The
Program Managers will meet on a monthly basis or as required. The monthly
meetings may be held by teleconference or in a location mutually agreeable to
the Parties.

5.2   SoftScan Steering Committee

The Parties acknowledge that the establishment of a joint steering committee is
advisable in order to most effectively enable the Parties to fulfill their
obligations in relation to the Program (the "SoftScan Steering Committee"). The
SoftScan Steering Committee will be made up of four (4) individuals (each a
"Permanent Member"), two chosen by ART and two chosen by GE. The SoftScan
Steering Committee may also include two other individuals, one chosen by ART and
one chosen by GE, which may be appointed on a case by case basis dependent on
the nature of the discussion matter. The SoftScan Steering Committee members
shall be appointed by the Parties. Either Party shall give Notice to the other
Party of the appointments of its two (2) Permanent Members within two (2) weeks
of the Effective Date.

If, at any time, any of the members of the SoftScan Steering Committee are
unable or unwilling to continue to serve as a SoftScan Steering Committee
member, then their affiliated Party may appoint a member as their replacement.
The Parties shall appoint an individual to serve as the committee representative
and secretary. Such individual shall be responsible for the general
administrative matters of the SoftScan Steering Committee and shall provide all
required notices and information to the other SoftScan Steering Committee
members. If, at any time, the committee representative and secretary is unable
or unwilling to continue to act in this role, then the SoftScan Steering
Committee shall vote to elect a replacement. SoftScan Steering Committee
meetings shall be held in person or by teleconference to discuss and review the
status

                                                                              11
<PAGE>

of the Program. At a minimum, SoftScan Steering Committee meetings shall be held
in person on a quarterly basis at a location to be mutually agreed upon by the
Parties.

5.3   Dispute Resolution

The Parties will attempt in good faith to resolve expeditiously any dispute,
claim or controversy arising out of or relating to this Agreement (a "Dispute")
through negotiations between executives of each Party who have authority to
settle the controversy and who are at a higher level of management than the
Persons with direct responsibility for the administration and execution of this
Agreement. Either Party may give the other Party Notice of any Dispute not
resolved in the normal course of business (an "Escalation Notice"). Within
fifteen (15) days after delivery of the Escalation Notice, the Party given such
Escalation Notice shall submit a written response to the Party providing such
Escalation Notice. The Escalation Notice and the response thereto shall include:
(i) a statement of each Party's position and a summary of arguments supporting
that position and (ii) the name and title of the executive who will represent
that Party and of any other Person who will accompany such executive to the
negotiations. Within thirty (30) days after delivery of the Escalation Notice,
the Persons identified by the Escalation Notice and the response shall meet at a
mutually acceptable time and place, and shall continue to meet thereafter as
often as such Persons reasonably deem necessary to resolve the Dispute. All
reasonable requests for information relating to the Dispute made by one Party to
the other will be honored. All negotiations pursuant to this clause are
confidential and shall be treated as compromise and settlement negotiations for
purposes of any applicable rules of evidence. The Parties shall attempt to
resolve any Dispute pursuant to the procedure set forth in this Section for a
period of up to sixty (60) days from the date of delivery of the Escalation
Notice before resorting to other available remedies as provided for in Section
16.9.

5.4   Mandate of the SoftScan Steering Committee

The role of the SoftScan Steering Committee shall be one of providing guidance
to the Parties and the Program in respect of (i) those matters set out below and
(ii) the proper execution of the obligations undertaken by the Parties pursuant
to this Agreement. The SoftScan Steering Committee shall have the authority to
decide important matters with respect to the execution of this Agreement and
guide the Parties in respect of the following matters including, but not limited
to:

      (i)   overseeing and monitoring the Program;

      (ii)  providing guidance with respect to the obligations of each Party, as
            set forth in this Agreement, in order to promote adequate progress
            of the Program;

      (iii) facilitating the successful completion of each Phase of the Program;

      (iv)  responding to requests made by the Program Managers with respect to
            the Program Purpose;

      (v)   identifying and attempting to resolve any additional decisions that
            are required by the Parties in support of the Program Purpose;

                                                                              12
<PAGE>

      (vi)  attempting to resolve issues arising between the Parties with
            respect to the interaction of the Parties and the Program; and

      (vii) promoting and directing that any development, marketing,
            manufacture, sales, distribution and customer service of the ART
            SoftScan Product is conducted in good faith and in a manner
            consistent with the collaborative spirit and intent of this
            Agreement.

5.5   Progress Reports

Progress reports detailing the progress results and recommendations concerning
the Program will be provided by the Program Managers to the SoftScan Steering
Committee at least once per month and at a level of details as mutually agreed
upon by the Parties (the "Progress Reports").

5.6   Research Obligations

Each Party's obligations under Articles 6, 7 and 8 will be deemed discharged
with respect to this Agreement if: (i) the required personnel and data are
provided; (ii) the work is performed in accordance with high standards of
scientific and professional skills; (iii) all of the objectives have either been
accomplished or have been deemed by the Parties to be impractical to achieve or
not Commercially Viable; and (iv) any required written reports have been
provided by the responsible Party on a timely basis.

                                   ARTICLE 6
                                 CLINICAL PHASE

6.1   Clinical Phase

The Clinical Phase of production has commenced as of the Effective Date. The
Parties agree to assume their respective responsibilities during the Clinical
Phase as set out in further details in this Article 6. Additional
responsibilities may be identified as the Clinical Phase progresses and as the
Program Managers may recommend to the Parties the allocation of additional
duties and responsibilities.

6.2   Location of Manufacturing

During the Clinical Phase, manufacturing will be located at ART's facility
wherever situated.

6.3   Responsibilities of ART

During the Clinical Phase, ART shall be responsible for the following:

      (i)   [CONFIDENTIAL]

6.4   Responsibilities of GE

During the Clinical Phase, GE shall be responsible for the following:

      (i)   [CONFIDENTIAL]

                                                                              13
<PAGE>

[CONFIDENTIAL].

                                   ARTICLE 7
                              PRE-PRODUCTION PHASE

7.1   Pre-Production Phase

Upon the successful completion of the Clinical Phase and the agreement of the
Parties of the revenue model for the Pre-Production Phase pursuant to Section
6.5, the Pre-Production Phase shall commence as soon as the following two
milestones have been achieved:

      (i)   [CONFIDENTIAL]

7.2   Location of Manufacturing

During the Pre-Production Phase, it is anticipated that manufacturing will be
located at ART's facility wherever situated. [CONFIDENTIAL]

7.3   Responsibilities of ART

During the Pre-Production Phase, ART shall be responsible for the following:

      (i)   [CONFIDENTIAL].

7.4   Responsibilities of GE

During the Pre-Production Phase, GE shall be responsible for the following:

      (i)   [CONFIDENTIAL]

7.5   Additional Responsibilities of SoftScan Steering Committee during
      Pre-Production Phase

In addition to its other responsibilities set out in this Agreement, the
SoftScan Steering Committee shall also be responsible for recommending the
development of transitional plans and timelines for the SoftScan System
manufacturing and production process in order to ensure a smooth transition to
the Full Production Phase.

[CONFIDENTIAL].

                                   ARTICLE 8
                              FULL PRODUCTION PHASE

8.1   Full Production Phase

Upon successful completion of the Pre-Production Phase, the Full Production
Phase shall commence as soon as the Parties have reached agreement with respect
to any additional details regarding the Parties respective obligations pursuant
to Sections 8.3 and 8.4.

                                                                              14
<PAGE>

8.2   Product and Location of Manufacturing

Each SoftScan System shall be manufactured to the specifications approved by
ART. During the Full Production Phase, it is the intention of the Parties that
manufacturing be located at a GE Facility. However, during the Full-Production
Phase, the Parties acknowledge that it is in the interest of both Parties to
continuously investigate methods for cost reducing the manufacturing, design and
service costs associated with the SoftScan System. It is also recognized that
both Parties shall work together to implement a cost reduction program that will
benefit both Parties.

8.3   Responsibilities of ART

If the manufacturing of the SoftScan Product takes place at a GE Facility,
during the Full Production Phase, ART shall be responsible for the following:

      (i)   [CONFIDENTIAL]

8.4   Responsibilities of GE

If the manufacturing of the SoftScan Product takes place at a GE Facility,
during the Full Production Phase, GE shall be responsible for the following:

(i)   [CONFIDENTIAL]

[CONFIDENTIAL]

                                   ARTICLE 9
                       TECHNOLOGY OWNERSHIP AND LICENSING

9.1   License of Technology

Each Party has no right, title, or interest, whether by way of license or
otherwise in or to use the other's Technology except as provided for in this
Agreement. Subject to the other provisions of this Agreement and in
consideration of the mutual covenants and other obligations expressed in this
Agreement, the following licenses shall be granted hereunder:

      (i)   ART Technology License - ART grants to GE and GE accepts a worldwide
            license to make, have made, use, sell, offer for sale and otherwise
            commercially exploit the ART SoftScan Technology and the ART
            Background Technology in conjunction with ART solely for the Program
            Purpose and to further the Program Purpose in accordance with this
            Agreement. The license to the ART Background Technology shall be
            non-exclusive and the license to the ART SoftScan Technology shall
            be exclusive;

      (ii)  GE Technology License - GE grants to ART and ART accepts a worldwide
            license to make, have made, use, sell, offer for sale and otherwise
            commercially exploit the GE Technical Information in conjunction
            with GE solely for the Program Purpose and to further the Program
            Purpose in accordance with this Agreement. The license to the GE
            Technical Information shall be non-exclusive.

                                                                              15
<PAGE>

Notwithstanding the foregoing, the Parties agree that the rights to use the ART
SoftScan Trade-marks and the GE Trade-marks in association with the Program and
the SoftScan Systems shall be prescribed by Article 10. The rights granted in
this Section 9.1 are strictly licensed rights and no Transfer of ownership or
other legal, equitable or proprietary right, title or interest is intended or
implied by this Agreement or by any other aspect of the relationship of the
Parties. Except as set forth in this Section 9.1, neither Party shall have any
obligation to contribute any Technology to the Program or to make or allow any
use of such Technology in the Program.

9.2   Acknowledgements Relating to ART Technology License

GE agrees as follows:

      (i)   Specifications - All design, component and manufacturing
            specifications shall be the sole responsibility of ART. GE shall not
            make any alterations or amendments to such specifications without
            ART's prior written consent.

      (ii)  License of Improvements to ART - GE hereby assigns to ART any
            improvement, development or derivative work, and any Intellectual
            Property Rights residing therein, to the ART SoftScan Technology,
            ART Background Technology, ART SoftScan Product, or the SoftScan
            Systems created by GE pursuant to this Agreement which results,
            directly or indirectly, from GE's participation in the Program and
            GE acknowledges that ART shall be the owner of such improvements,
            developments or derivative works. Such improvements, developments
            and derivative works shall be licensed to GE as ART Background
            Technology under Section 9.1(i) hereof. Notwithstanding anything in
            this Section 9.2 or any other section of this Agreement to the
            contrary, any manufacturing, production or operational processes,
            equipment, tooling, dyes and the like developed by GE in connection
            with its manufacture of the SoftScan product, and any Intellectual
            Property Rights residing therein shall remain the sole property of
            GE.

9.3   Acknowledgements Relating to GE Technology License

ART hereby assigns to GE any improvement, development or derivative work, and
any Intellectual Property Rights residing therein, to the GE Technical
Information created by ART pursuant to this Agreement which results, directly or
indirectly, from ART's participation in the Program and ART acknowledges that GE
shall be the owner of such improvements, developments or derivative works. Such
improvements, developments and derivative works shall be licensed to ART as GE
Technical Information under Section 9.1(ii) hereof.

9.4   Certain Restrictions on Use of Technology

The following shall be express restrictions and conditions of the Technology
licenses granted in Section 9.1 as applicable:

      (i)   Third Party Licensed Technology - With respect to licensed
            Technology which is licensed to the Party licensor from a Third
            Party (excluding Technology licensed under the [CONFIDENTIAL]), such
            Technology shall only be sub-licensed by the

                                                                              16
<PAGE>

            recipient hereunder to the extent that the recipient may have the
            right under such license agreements to sub-license such Technology.
            Without limiting the generality of the foregoing, to the extent that
            such license agreements place restrictions on the recipient's
            ability to sub-license such Technology to a Third Party, such
            restrictions shall also be adhered to by the recipient hereunder in
            respect of such sub-licensed Technology; and

      (ii)  [CONFIDENTIAL].

9.5   Sublicensing to Others

GE shall not license or otherwise permit any other Person to use, directly or
indirectly, in whole or in part, the ART SoftScan Technology or the ART
Background Technology other than as may be permitted in accordance with this
Agreement; provided, however, that GE may sublicense the ART SoftScan Technology
and the ART Background Technology, subject to ART's prior written approval, such
approval not to be unreasonably withheld, to contractors for the Program Purpose
to further the Program, provided that such contractor agrees in writing to be
bound by the applicable terms of this Agreement, including the confidentiality
provisions but excluding the right to sublicense. ART shall not license or
otherwise permit any other Person to use, directly or indirectly, in whole or in
part, the GE Technical Information other than as may be permitted in accordance
with this Agreement. Notwithstanding the foregoing the Party licensee may grant
personal, non-exclusive and non-transferable sublicenses to its Affiliates
approved by the Party licensor in writing, such sublicensees to be on the same
terms, mutatis mutandis, as the terms of this Agreement insofar as they are
applicable, but excluding the right to further sublicense. The Party licensee
shall cause such sublicensees to acknowledge and agree to be bound by the terms
and conditions of this Agreement. The Party licensee shall also ensure
compliance by its Affiliates with this Agreement as if they were Parties.

9.6   Development of Technology for other Purposes

ART shall have the unrestricted right to improve, develop, modify, and enhance
the ART SoftScan Technology and ART Background Technology during and after the
Term. Except as may otherwise be expressly provided for in this Agreement,
nothing shall preclude ART from (i) developing or commercialising ART Background
Technology during or after the Term in any manner that ART sees fit and (ii)
developing or commercialising ART SoftScan Technology after the Term in any
manner that ART sees fit. GE shall have the unrestricted right to improve,
develop, modify, and enhance the GE Technical Information during and after the
Term. Except as may otherwise be expressly provided for in this Agreement,
nothing shall preclude GE from developing or commercialising GE Technical
Information during or after the Term in any manner that GE sees fit.

                                                                              17
<PAGE>

                                   ARTICLE 10
                                   TRADE-MARKS

10.1  Use of Trade-marks during Program

The Parties agree that it shall be beneficial for each of them to use certain
trade-marks on and in association with the Program and the SoftScan Systems. In
connection therewith, and notwithstanding Section 9.1, the Parties agree as
follows:

      (i)   Clinical and Pre-Production Phases (ART manufacturing and ART
            distributing) - During the Clinical Phase and the Pre-Production
            Phase of the Program where ART is manufacturing and distributing the
            SoftScan Systems, the trade-marks that shall be used in association
            with the Program and with the SoftScan Systems shall be the ART
            SoftScan Trade-marks identified by ART. ART shall solely be
            responsible for selecting the ART SoftScan Trade-marks and
            determining their manner of use. Subject to the prior written
            consent of GE, the GE Trademarks may be used in promotional
            materials in conjunction with language identifying GE as the future
            manufacturer and distributor of the SoftScan Systems, if GE is
            expected to act as the manufacturer and distributor of the SoftScan
            Systems.

      (ii)  Pre-Production Phase (ART manufacturing and GE distributing) -
            During the Pre-Production Phase of the Program where ART is
            manufacturing and GE is distributing the SoftScan Systems, the
            trade-marks that shall be used in association with the Program and
            with the SoftScan Systems shall be the GE Trade-marks identified by
            GE and the ART SoftScan Trade-mark SOFTSCAN (with ART being
            identified as the manufacturer on the rating plate). GE shall solely
            be responsible for selecting the GE Trade-marks and determining
            their manner of use and determining the manner of use of the ART
            SoftScan Trade-mark SOFTSCAN. ART agrees that GE's licence to use
            the ART SoftScan Trade-mark SOFTSCAN in such circumstances shall be
            exclusive to GE and GE agrees that such trade-mark shall only be
            used on or in association with the Program and SoftScan Systems
            where ART has been the manufacturer. GE shall permit ART to inspect
            the Program and SoftScan Systems distributed by GE from time to time
            (but no less than every six (6) months during the Term) to ensure
            that ART SoftScan Trade-mark SOFTSCAN is only being used in
            association with the Program and SoftScan Systems where ART was the
            manufacturer. However, during this phase ART may also use the ART
            SoftScan Trade-marks in association with the Program and SoftScan
            Systems notwithstanding the exclusive license granted to GE to use
            the ART Trade-mark SOFTSCAN; and

      (iii) Pre-Production Phase and Full Production Phase (GE manufacturing and
            GE distributing) - During the Full Production Phase of the Program
            and in the event that manufacturing is transferred to GE during the
            Pre-Production Phase (i.e., GE is manufacturing and distributing the
            SoftScan Systems), the trade-marks that shall be used in association
            with the Program and with SoftScan Systems shall be the GE
            Trade-marks identified by GE and the ART SoftScan Trade-mark
            SOFTSCAN (with GE being identified as the manufacturer on the rating
            plate). GE shall solely be responsible for selecting the GE
            Trade-marks and determining

                                                                              18
<PAGE>

            their manner of use and determining the manner of use of the ART
            SoftScan Trade-mark SOFTSCAN. ART agrees that GE's licence to use
            the ART SoftScan Trade-mark SOFTSCAN in such circumstances shall be
            exclusive to GE and GE agrees that such trade-mark shall only be
            used on or in association with the Program and SoftScan Systems
            where GE was the manufacturer and where the Program and SoftScan
            Systems comply with the design, component and manufacturing
            specifications set by ART under Section 9.2(i) hereof. GE shall
            permit ART to inspect the Program and SoftScan Systems distributed
            by GE from time to time (but no less than every six (6) months
            during the Term) to ensure that ART SoftScan Trade-mark SOFTSCAN is
            only being used in association with the Program and SoftScan Systems
            where GE was the manufacturer and in compliance with such design,
            component and manufacturing specifications.

Notwithstanding the foregoing, the GE Trademarks and ART SoftScan Trademarks
shall not be used together, except in the limited uses as described above,
without the Parties prior written agreement, which agreement either Party may
withhold in the exercise of its sole discretion. Either Party shall not, without
the prior written consent of the other Party, directly or indirectly attempt to
dilute or depreciate the value of the goodwill attached to the other Party's
trade-marks, use such trade-marks in any manner which may adversely affect the
reputation of the owner of such trade-marks, or use or permit the use of such
trade-marks as part of the business, trade, corporate, partnership or other name
of the Party not owning such trade-marks. For the sake of clarity, the Parties
agree that notwithstanding the foregoing, ART shall not have the right to use
the GE Trade-marks without the prior written consent of GE.

                                   ARTICLE 11
                                 CONFIDENTIALITY

11.1  General

The terms and provisions of this Article 11 with respect to confidentiality and
non-use of Confidential Information of the Parties shall supersede any and all
prior confidentiality agreements between GE and ART, with respect to the subject
matter of this Agreement. Nothing in this Article 11 shall be construed or
interpreted as restricting or prohibiting any Party from making or permitting
any disclosure of Confidential Information of either Party or both Parties which
is otherwise expressly permitted by this Agreement.

11.2  Confidentiality

Confidential Information exchanged between the Parties shall be considered to be
Confidential Information for the purposes of this Agreement. Each Party
acknowledges and agrees that Confidential Information that it as a recipient
(the "Receiving Party") receives from the other Party (the "Disclosing Party")
shall be treated as confidential and a trade secret of the Disclosing Party. All
Confidential Information exchanged between the Parties shall be exchanged in the
following format: (i) in writing and marked to indicate it is confidential at
the time of disclosure; (ii) in any other manner indicated to be confidential at
the time of disclosure or, in the case of oral disclosures, in monthly Progress
Reports; or (iii) in the form of tangible products or materials transmitted to
the Receiving Party with an accompanying written memorandum identifying the
confidentiality of such products or materials.

                                                                              19
<PAGE>

11.3  Non-disclosure of Confidential Information by Receiving Party

The Receiving Party shall hold all Confidential Information of the Disclosing
Party in confidence for a period of five (5) years from the expiration or
termination of this Agreement. Except as set forth below, the Receiving Party
shall not for any reason without the prior written consent of the Disclosing
Party, directly or indirectly, provide any other Person with access to the
Confidential Information that it receives from the Disclosing Party. Providing
access includes disclosure, sale, copying, dissemination, publishing or
reproduction by any means whatsoever. Confidential Information received from a
Disclosing Party under this Agreement may only be disclosed by a Receiving
Party:

      (i)   to persons employed by the Receiving Party in order to carry out the
            Program; and

      (ii)  to subcontractors of the Receiving Party, upon written approval of
            the Disclosing Party, such approval not to be unreasonably withheld,
            for use only within the framework of their contracts with the
            Receiving Party in work relating to the Program, such subcontractors
            being subject to the similar confidentiality provisions as provided
            for in this Agreement;

provided that any such Confidential Information shall only be disseminated to
such persons or contractors on a need-to-know basis pursuant to an agreement of
confidentiality. Neither Party shall include Confidential Information of the
other Party in any patent application without the prior written consent of the
other Party.

11.4  Control of Confidential Information by Recipient

The Receiving Party may not make use of Confidential Information disclosed to it
by the Disclosing Party for the benefit of any Person or assist others in doing
so other than as provided herein. The Receiving Party agrees to use the same
efforts it uses to protect its own confidential information to maintain the
confidentiality of all Confidential Information received by it from a Disclosing
Party during the Term and shall ensure that such Confidential Information shall
be controlled as provided herein. If the Receiving Party becomes aware that it
will be or may reasonably be expected to become unable to meet the
non-disclosure or restricted use provisions of this Agreement with respect to
Confidential Information received from a Disclosing Party, it shall immediately
provide Notice to the Disclosing Party. The Parties shall thereafter consult to
define an appropriate course of action. If a Receiving Party is required by
judicial or administrative process to disclose Confidential Information received
from a Disclosing Party, the Receiving Party shall promptly provide Notice to
the Disclosing Party and allow the Disclosing Party a reasonable time to oppose
such process.

                                   ARTICLE 12
                         REPRESENTATIONS AND WARRANTIES

12.1  Representations of the Parties

Each Party represents and warrants to the other that as of the Effective Date:

                                                                              20
<PAGE>

      (i)   Incorporation - Such Party is a corporation duly incorporated and
            validly existing under its jurisdiction of incorporation;

      (ii)  Due Authorisation, etc. - Such Party has all necessary corporate
            power, authority and capacity to enter into and to carry out its
            obligations under this Agreement and that the signatory on its
            behalf is authorized to execute this Agreement and bind its
            principal to the terms and conditions stated herein. The execution
            and delivery of this Agreement and the consummation of the
            transactions contemplated by this Agreement have been duly
            authorised by all necessary corporate action on the part of such
            Party; and

      (iii) Absence of Conflicting Agreements - Such Party is not a party to,
            bound or affected by or subject to any license, indenture, mortgage,
            agreement, obligation, instrument, charter or by-law provision,
            statute, regulation, order, judgement, decree, license, permit or
            law which would be violated, contravened, breached by, or under
            which default would occur or a lien, claim, restriction or
            encumbrance would be created as a result of the execution and
            delivery of this Agreement or the conduct of any of the matters
            provided for under this Agreement. There are no agreements between
            it and a Third Party that would conflict with the provisions of this
            Agreement.

12.2  Representations of ART

ART represents the following:

      (i)   Schedule A attached hereto sets forth all intellectual property
            contracts relating to the SoftScan Technology and the ART Background
            Technology (each an "IP Contract" and collectively the "IP
            Contracts"). A true and complete copy of each IP Contract has been
            delivered to GE. Each IP Contract is in good standing and in full
            force and effect and ART is not, and is not alleged to be, in
            default in any material respect thereunder. To the knowledge of ART,
            there is not any condition or event that, after notice or lapse of
            time, or both, would constitute a default in any material respect by
            any party to any IP Contract. To the knowledge of ART, there is no
            fact or circumstance which entitles, or with the giving of notice or
            passage or time would entitle, any Person to terminate or to cause
            the termination of any IP Contract which has not been disclosed in
            writing to, and accepted by, GE. ART has not agreed to assign all or
            any part of its interest in any IP Contract to any Person other than
            GE.

      (ii)  None of the written information and material delivered to GE by or
            on behalf of ART contains any untrue statement of a material fact or
            has omitted a material fact necessary to make the statements
            contained therein not misleading, and all such statements, taken as
            a whole, do not contain any untrue statement of a material fact or
            omit a material fact necessary to make the statements contained
            therein not misleading. There is no fact known to ART which ART has
            not disclosed to GE in writing which, to the knowledge of ART, would
            materially adversely affect the ART SoftScan Technology or the ART
            Background Technology or the ability of ART to perform its
            obligations under this Agreement.

                                                                              21
<PAGE>

12.3  Warranty Exclusion

The foregoing representations and warranties in this Article 12 (except as
otherwise expressly set out in this Agreement) are exclusive and are given and
accepted in lieu of any and all other warranties and conditions, express or
implied, including any implied warranties and conditions of merchantability or
of fitness for a particular purpose and any implied warranties and conditions
arising from a course of dealing, usage of trade, or course of performance.
Without limiting the generality of the foregoing, except as expressly provided
in this Agreement, ART denies and disclaims any warranty or condition, express
or implied, concerning the performance, operation or functionality of the ART
SoftScan Technology or ART Background Technology whatsoever, its fitness for use
for the Program Purpose, or that the operation of such technology will be error
free or uninterrupted or that it will produce a desired result.

                                   ARTICLE 13
                                  INFRINGEMENTS

13.1  Infringement of ART Technology by Unauthorised Persons

GE shall promptly notify ART of any conflicting use or any act of infringement
or appropriation of the ART SoftScan Technology (provided by ART pursuant to
this Agreement) or the ART Background Technology (provided by ART pursuant to
this Agreement) by unauthorised Persons which comes to its attention. ART shall,
at its own expense, have the sole right but not the obligation to engage in
proceedings involving such Technology or to take such steps as may be necessary
in order to terminate such infringement or appropriation. ART may in its sole
discretion settle any dispute with any Third Party at any time regarding such
infringement and appropriation, without compensation to GE. GE shall co-operate
and assist ART in a reasonably commercial manner at ART's expense in any such
negotiations and proceedings instituted by ART provided that the infringement or
appropriation relates to the Program Purpose. The foregoing notwithstanding, ART
shall not under any circumstances enter into any agreement, settle or otherwise
resolve any dispute with any Third Party that in any way implicates or
negatively affects GE's rights pursuant to this Agreement without GE's prior
written approval, which approval shall not be unreasonably withheld.

13.2 Infringement of GE Technical Information by Unauthorised Persons

ART shall promptly notify GE of any conflicting use or any act of infringement
or appropriation of GE Technical Information (provided by GE pursuant to this
Agreement) by unauthorised Persons which comes to its attention. GE shall, at
its own expense, have the sole right but not the obligation to engage in
proceedings involving such Technical Information or to take such steps as may be
necessary in order to terminate such infringement or appropriation. GE may in
its sole discretion settle any dispute with any Third Party at any time
regarding such infringement and appropriation, without compensation to ART. ART
shall co-operate and assist GE in a reasonably commercial manner at GE's expense
in any such negotiations and proceedings instituted by GE provided that the
infringement or appropriation relates to the Program Purpose. The foregoing
notwithstanding, GE shall not under any circumstances enter into any agreement,
settle or otherwise resolve any dispute with any Third Party that in any way
implicates or negatively affects ART's rights pursuant to this Agreement without
ART's prior written approval, which approval shall not be unreasonably withheld.

                                                                              22
<PAGE>

13.3  Infringement Claims Against ART

ART shall give GE Notice in the event that ART becomes aware of any action or
claim that the ART SoftScan Technology (provided by ART pursuant to this
Agreement) or ART Background Technology (provided by ART pursuant to this
Agreement) infringes any rights of or is appropriated from any other Person. In
the event that an injunction is obtained against ART restricting the use of such
Technology or if, in ART's reasonable opinion ART is likely to become the
subject of a claim or action alleging infringement, ART shall, at its option and
sole expense, either:

      (i)   obtain for itself and GE the right to continue use of the Technology
            as contemplated by this Agreement; or

      (ii)  replace or modify any affected Technology to make its use hereunder
            non-infringing while being capable of performing the same function,
            without, to the extent possible, degrading performance, utility or
            economic viability.

The foregoing notwithstanding, ART shall not under any circumstances enter into
any agreement, settle or otherwise resolve any dispute with any Third Party that
in any way implicates or negatively affects GE's rights pursuant to this
Agreement without GE's prior written approval, which approval shall not be
unreasonably withheld.

13.4  Infringement Claims Against GE

GE shall give ART Notice in the event that it becomes aware of any action or
claim that the GE Technical Information (provided by GE pursuant to this
Agreement) infringes any rights of or is appropriated from any other Person. In
the event that an injunction is obtained against GE restricting the use of such
Technical Information or if, in GE's reasonable opinion GE is likely to become
the subject of a claim or action alleging infringement, GE shall, at its option
and sole expense, either:

      (i)   obtain for itself and ART the right to continue use of the Technical
            Information as contemplated by this Agreement; or

      (ii)  replace or modify any affected Technical Information to make its use
            hereunder non-infringing while being capable of performing the same
            function, without, to the extent possible, degrading performance,
            utility or economic viability.

The foregoing notwithstanding, GE shall not under any circumstances enter into
any agreement, settle or otherwise resolve any dispute with any Third Party that
in any way implicates or negatively affects ART's rights pursuant to this
Agreement without ART's prior written approval, which approval shall not be
unreasonably withheld.

                                   ARTICLE 14
                             LIABILITY AND INSURANCE

14.1  Assumption and Risk

ART and GE recognise and individually assume the following risks:

                                                                              23
<PAGE>

      (i)   that all Regulatory Approvals relating to the ART SoftScan Product
            may not be obtained;

      (ii)  that Commercially Viable versions of products, processes or
            equipment or methods or procedures relating to the ART SoftScan
            Product may not be able to be developed;

For greater certainty, but without limiting the foregoing, neither Party shall
be liable to the other Party in tort or in contract for any suits, proceedings,
claims, demands or actions of any nature or kind whatsoever (including those for
personal injury or death) ("Claims") arising out of or resulting from such risks
or for punitive, indirect, incidental, special exemplary or aggravated damages.

14.2  Indemnity

Each Party hereby indemnifies and undertakes to defend the other Party and its
respective shareholders, directors, officers, employees, representatives, agents
and Affiliates and holds them harmless from all Claims directly or indirectly,
arising out or resulting from:

      (i)   the operation or performance of a product or service developed under
            the Program including, without limitation, any liabilities
            attributable to a design defect, malfunction or other failure of
            such products to perform, but only to the extent that any such
            liability is attributable to the gross negligence or wilful
            misconduct of the indemnifying Party;

      (ii)  the gross negligence, wilful misconduct or violation of any
            applicable law of or by the indemnifying Party;

      (iii) any material breach of this Agreement by the indemnifying Party; and

      (iv)  any Claim or threatened Claim against the other Party that a product
            or service developed by the indemnifying Party under the Program
            infringes, violates or misappropriates any Intellectual Property
            Rights of a Third Party, and against any and all fines, damages,
            losses, costs, expenses and fees (including without limitation
            reasonable attorney's and other professional fees and costs of
            litigation) incurred by or on behalf of any of the foregoing in the
            investigation or defence of any and all such Claims, but only to the
            extent that any such liability is attributable to the conduct of the
            indemnifying Party.

14.3  Procedure

In the event that any Party intends to claim indemnification pursuant to Section
14.2 it shall promptly give Notice to the indemnifying Party in writing of such
alleged liability, provided that the failure to promptly Notify the indemnifying
Party shall not relieve the indemnifying Party of any obligation under this
Agreement except to the extent such failure to provide prompt Notice adversely
impairs the indemnifying Party's ability to defend against the Claim. The
indemnifying Party shall have the sole right to control the defence and
settlement thereof, provided, that:

                                                                              24
<PAGE>

      (i)   the indemnifying Party may not consent to the imposition of any
            obligation or restriction on the Party seeking indemnification in
            any settlement unless mutually agreed by the Parties;

      (ii)  the indemnifying Party shall keep the Party seeking indemnification
            fully informed and permit the Party seeking indemnification to
            participate (at the Party seeking indemnification's expense) as the
            Party seeking indemnification may reasonably request; and

      (iii) the Party seeking indemnification may, without affecting its right
            to indemnity hereunder, defend and settle any such Claim, if the
            indemnifying Party declines to defend against such Claim or files
            for bankruptcy. The Party seeking indemnification shall reasonably
            cooperate with the indemnifying Party and its legal representatives
            in the investigation of any Claim covered by this Article 14. The
            Party seeking indemnification shall not, except at its own cost,
            voluntarily make any payment or incur any expense with respect to
            any Claim without the prior written consent of indemnifying Party,
            which the indemnifying Party shall not be required to give, provided
            that the Party seeking indemnification may, without affecting its
            right to indemnity hereunder, defend and settle any such Claim if
            the indemnifying Party declines to take responsibility or files for
            bankruptcy.

14.4  Monetary Limitation

The total liability of one Party to the other Party under this Agreement shall
not exceed [CONFIDENTIAL].

14.5  Time Limitation

No Claim, regardless of form, arising, directly or indirectly, under or out of
this Agreement may be brought by a Party after the applicable statute of
limitations for such Claim has expired.

14.6  Insurance

During the Term and for [CONFIDENTIAL] year(s) after the expiration or
termination of this Agreement, ART shall maintain, at its own expense, in full
force and effect at all such times, with responsible insurance carrier(s)
acceptable to the other Party at least [CONFIDENTIAL] Canadian dollars
[CONFIDENTIAL] in commercial general business liability insurance and at least
[CONFIDENTIAL] Canadian dollars [CONFIDENTIAL] umbrella coverage insurance
policies.

                                   ARTICLE 15
                                   TERMINATION

15.1  Termination For Cause

Either Party may terminate this Agreement For Cause. Grounds for termination
"For Cause" shall exist:

                                                                              25
<PAGE>

      (i)    if the other Party makes a general assignment for the benefit of
             creditors or a proposal or arrangement under any Insolvency Act or
             similar legislation, if a petition is filed against the other Party
             under any Insolvency Act or similar legislation, if the other Party
             shall be declared or adjudicated bankrupt, if a liquidator, trustee
             in bankruptcy or any other officer with similar powers shall be
             appointed of or for the other Party or if the other Party shall
             commit an act of bankruptcy or shall propose a compromise or
             arrangement or institute proceedings to be adjudged bankrupt or
             become insolvent or consent to the institution of such appointment
             or proceedings;

      (ii)   upon the written agreement of the Parties;

      (iii)  [CONFIDENTIAL].

The defaulting Party agrees to provide Notice forthwith to the non-defaulting
Party upon becoming aware of any of the foregoing events.

15.2  Other Grounds for Termination

This Agreement may be terminated:

      (i)    at any time by GE upon sixty (60) days prior Notice to ART if ART
             is in default of its obligations under this Agreement and has not
             remedied such default within such sixty (60) day period. ART agrees
             to provide Notice to GE forthwith upon ART becoming aware of such
             default;

      (ii)   at any time by ART upon sixty (60) days prior Notice to GE if GE is
             in default of its obligations under this Agreement and has not
             remedied such default within such sixty (60) day period. GE agrees
             to provide Notice to ART forthwith upon GE becoming aware of such
             default;

      (iii)  at any time by either Party in the event a claim of infringement
             against the other Party results in the Program Purpose becoming not
             Commercially Viable;

      (iv)   at any time by either Party if a force majeure event (as described
             in Section 16.7) has a material effect on a Party's ability to
             perform all of its obligations under this Agreement for more than
             six (6) months;

      (v)    at any time by ART upon a Change in Control of GEMS, provided that
             a Notice of such Change in Control shall be provided to ART as soon
             as is permitted, but in no event more than thirty (30) days after
             such Change in Control. For the purposes of this subsection
             15.2(v), and notwithstanding Section 1.2 of this Agreement, the
             term "Change in Control" shall mean: (i) consolidation or merger of
             GEMS with or into any entity (other than a consolidation or merger
             with or into an Affiliate of GE); (ii) the sale, transfer or other
             disposition of all or substantially all of GEMS' assets in a single
             transaction or a series of related transactions (other than to an
             Affiliate of GE); and (iii) the acquisition by any entity, or group
             of entities acting in concert (other than an entity or group of
             entities that is an

                                                                              26
<PAGE>

             Affiliate or Affiliates of GE), of beneficial ownership of fifty
             percent (50%) or more (or such lesser amount that constitutes
             control) of the outstanding voting securities or other voting
             equity interests of GEMS (in the event that GEMS is or becomes a
             separate legal corporate entity) in a single transaction or a
             series of related transactions; or

      (vi)   at any time by GE upon a Change in Control of ART, provided that a
             Notice of such Change in Control shall be provided to GE as soon as
             is permitted, but in no event more than thirty (30) days after such
             Change in Control.

15.3  Effect of Termination

Upon the termination of this Agreement the Parties agree that the following
shall occur:

      (i)    each Party shall immediately pay to the other Party all fees,
             amounts and other charges as have become due and earned under this
             Agreement as of the date of termination;

      (ii)   any termination of this Agreement shall result in the termination
             of all ongoing work pursuant to this Agreement and the termination
             of such work shall be effective as of the date of termination of
             this Agreement;

      (iii)  the Parties shall fulfill any commercial orders for SoftScan
             Systems that have been placed and accepted prior to the date of
             termination of this Agreement;

      (iv)   the licenses granted under this Agreement shall be terminated;

      (v)    ART shall retain ownership of and may use and license the use of
             ART SoftScan Technology and ART Background Technology
             notwithstanding such termination and regardless of which Party
             terminates;

      (vi)   GE shall retain ownership of and may use and license the use of GE
             Technical Information notwithstanding such termination and
             regardless of which Party terminates;

      (vii)  GE shall immediately return to ART all ART SoftScan Technology and
             ART Background Technology (including Confidential Information of
             ART) that GE received pursuant to this Agreement and the
             Confidentiality Agreement;

      (viii) ART shall immediately return to GE all GE Technical Information and
             Confidential Information of GE that ART received pursuant to this
             Agreement and the Confidentiality Agreement;

      (ix)   GE shall remove the ART SoftScan Trade-marks from and deliver up to
             ART or its duly authorised representatives after GE's sale of all
             inventory of SoftScan Systems in GE's possession as of the date of
             termination, all materials including signs and advertising
             materials in its possession, custody or control upon which the ART
             SoftScan Trade-marks appear (except for documents not for public
             display or reasonably required for archival purposes); and

                                                                              27
<PAGE>

      (x)    ART shall remove the GE Trade-marks from and deliver up to GE or
             its duly authorised representatives all materials including signs
             and advertising materials in its possession, custody or control
             upon which the GE Trade-marks appear (except for documents not for
             public display or reasonably required for archival purposes).

15.4  Survival

All obligations of each Party under this Agreement which expressly or by their
nature survive termination or Transfer of this Agreement shall continue in full
force and effect subsequent to and notwithstanding such termination or Transfer
and until they are satisfied or by their nature expire. The following Sections
of this Agreement shall also survive the termination or Transfer of this
Agreement: Article 11 (Confidential Information) and Article 12 (Representations
and Warranties).

15.5  Other Relief

Any termination under Article 15 shall be without prejudice to any other rights
(including any right of indemnity), remedy or relief vested in or to which one
Party may otherwise be entitled against the other Party. The foregoing remedy
shall not exclude any other remedies which either Party may have at law or in
equity by reason of the default, breach or non-observance by the other Party of
any provision of this Agreement. Any refusal to renew or termination of this
Agreement shall not unto itself give rise to any liability for indemnity or
other compensation to the Party refusing to renew or terminating this Agreement,
and the Party which is not terminating or refusing to renew this Agreement
expressly waives any right to indemnity or compensation if the other Party
terminates this Agreement or exercises its right not to renew this Agreement as
provided for herein.

                                   ARTICLE 16
                                     GENERAL

16.1  Entire Agreement

This Agreement together with any and all Schedules constitutes the entire
agreement between the Parties to this Agreement with respect to the subject
matter of this Agreement and cancels and supersedes any prior understandings and
agreements between the Parties with respect to such subject matter (including,
without limitation, the Confidentiality Agreement). However, the Parties agree
that Confidential Information of ART provided to GE pursuant to the
Confidentiality Agreement shall be governed by Article 11 of this Agreement.
Neither Party shall be bound by any oral or other agreement or understanding
which is not expressly contained herein. There are no representations,
warranties, terms, conditions, undertakings or collateral agreements, express,
implied or statutory, between the Parties other than those expressly set forth
in this Agreement. This Agreement may only be amended or modified by express
written consent of the Parties.

                                                                              28
<PAGE>

16.2  Compliance with Applicable Laws

Each Party and its Affiliates shall, in the performance of all of their rights
and obligations under this Agreement, and as may be assigned to them by the
SoftScan Steering Committee hereunder (including in the use, storage, handling
and disposal of any and all materials received from the other Party) comply with
all applicable laws of the territory in which it carries on any activities under
or in furtherance of this Agreement and with all orders, decrees, policies and
directives issued by any applicable Regulatory Authorities. Nothing in this
Agreement shall be construed as requiring either Party to perform its
obligations hereunder, where such performance shall constitute an infringement,
contravention, breach or interference with any Third Parties' rights (including
intellectual property, statutory and common law rights), any order of a court or
tribunal of competent jurisdiction or final judgement or decree or any order of
a Regulatory Authority in any jurisdiction where such Party affected by such
order, judgement or decree has taken all reasonable action to contest and appeal
such order, judgement or decree, and such order, judgement or decree shall not
have been vacated, discharged or stayed within the applicable appeal period.
Should either Party be or become aware of any applicable laws which are
inconsistent with the provisions of this Agreement, such Party shall promptly
provide Notice to the other Party of such inconsistency. In such event, the
other Party may, at its option, either waive the performance of such
inconsistent provisions or negotiate with the Party giving Notice to make
changes in such provisions to comply with applicable laws and regulations.

16.3  Assignment

This Agreement shall enure to the benefit of and be binding upon the respective
successors and permitted assigns of the Parties and the name of a Party
appearing herein shall be deemed to include the names of its successors and
assigns, provided always that nothing herein shall permit any assignment by
either Party except as expressly provided herein. Neither Party shall Transfer
this Agreement, any rights or obligations hereunder or any technology owned by
the other Party either in whole or in part without the prior written consent of
the other Party; provided that GE may make any such Transfer to its Affiliates
without ART's consent.

16.4  Amendment and Waiver

No amendment to this Agreement shall be valid or binding unless set forth in
writing and duly executed by all of the Parties to this Agreement. Failure on
either Party's part to exercise any rights or privileges granted to it or to
insist upon full performance of all obligations or duties assumed by the other
Party shall not be construed as waiving any such rights, privileges, obligations
or duties or creating any custom contrary thereto. No waiver of any breach of
any provision of this Agreement shall be effective or binding unless made in
writing and signed by the Party purporting to give the same and, unless
otherwise provided in the written waiver, shall be limited to the specific
breach waived. Without limiting the foregoing, a course of conduct or of
performance does not effect a waiver or modification of this Agreement unless
ratified in writing.

16.5  No Partnership, Independent Contractors

Both Parties shall, at all times during the performance of this Agreement,
remain as independent contractors, and nothing in this Agreement shall be
construed or interpreted to make the Parties

                                       29
<PAGE>

partners, joint venturers or agents of one another for any purpose whatsoever.
Without limiting the foregoing, the Parties are and will at all times remain
independent contractors and are not and shall not represent themselves to be the
agent, joint venturer, partner or franchisee of the other Party or to be related
to the other Party other than as independent contractors. Nothing in this
Agreement will be deemed to constitute any Party the partner of the other Party,
and it is not the intention of the Parties to create, nor will this Agreement be
construed to create, a partnership. No representations will be made or acts
taken by any Party which could establish any apparent relationship of agency,
joint venture or partnership and the Parties shall not be bound in any manner
whatsoever by any agreements, warranties or representations made by any of the
other Parties to any other Person or with respect to any other action of any of
the other Parties except as may be expressly provided for herein. No acts of
assistance given by one Party to another Party shall be construed to alter this
relationship. Without limiting the foregoing, neither Party shall represent
itself to be the agent, joint venturer or partner of the other Party or to be
related to the other Party other than as its independent contractor. Neither
Party shall establish any bank account, make any purchase, apply for any loan or
credit or incur or permit any obligation to be incurred in the name of or on the
credit of the other Party without the other Party's prior consent. Neither Party
is authorized, in the name of or on behalf of the other, to transact any
business, incur any obligation, undertake any activities, or otherwise to bind
the other in any manner whatsoever. No acts of assistance given by one Party to
the other shall be construed to alter this relationship.

16.6  Invalidity

If any of the provisions contained in this Agreement are found by a court of
competent jurisdiction to be invalid, illegal or unenforceable in any respect,
the validity, legality or enforceability of the remaining provisions contained
herein shall not be in any way affected or impaired thereby.

16.7  Force Majeure

No Party shall be responsible to any other Party for non-performance or delay in
performance (other than any payment of money) occasioned by any causes beyond
its reasonable control including, without limitation, fire, flood, accident,
riot, acts or omissions of any other Party, acts of civil or military authority,
strikes, lockouts, embargoes, insurrections, civil commotion, terrorism or Acts
of God. If any such delay occurs, any applicable time period shall be
automatically extended for a period equal to the time lost. Each Party must use
its best efforts to avoid any such failure or delay and must resume performance
under this Agreement as promptly as possible after any such failure or delay. If
either Party becomes aware of any such factor that would cause a delay or
failure in performance, it shall give Notice to the other Party of the existence
of such factor and probable length of continuation thereof.

16.8  Severability

If in any jurisdiction, any provision of this agreement or its application to
any Party or circumstance is restricted, prohibited or unenforceable, such
provision shall, as to such jurisdiction, be ineffective only to the extent of
such restriction, prohibition or unenforceability without invalidating the
remaining provisions of this Agreement and without affecting the validity or
enforceability of such provision in any other jurisdiction or its application to
other

                                                                              30
<PAGE>

Parties or circumstances. Any provision of this Agreement that provides for a
limitation of liability, disclaimer of warranties or exclusion of damages, is
intended by the Parties to be severable and independent of any other such
provision and to be enforced as such. If any limited remedy provided herein is
determined to have failed of its essential purpose, all limitations of liability
and exclusions of damages set forth herein shall nonetheless remain in effect.

16.9  Dispute Resolution

If any Dispute cannot be resolved pursuant to Section 5.3, either Party within
thirty (30) days after the end of such sixty (60) day period prescribed in
Section 5.3, may demand that the Dispute be submitted to binding arbitration by
notifying the other Party, in writing (the "Arbitration"). The Arbitration shall
be conducted in the City of Toronto, Ontario, Canada, before a single
arbitrator. The arbitrator shall be appointed, and the Arbitration shall be
conducted, under the terms and conditions of the Arbitrations Act (Ontario) in
effect as of the Effective Date, provided that the arbitrator shall have no
power to award punitive, exemplary or consequential damages to any Party to the
Arbitration. The arbitrator's decision shall be final, conclusive and binding on
the Parties to the Arbitration, and shall be the exclusive forum for any claims
arising out of this Agreement or the subject matter hereof.

16.10 Notices

Any notice or other writing required or permitted to be given under this
Agreement or for the purposes of this Agreement ("Notice") to any Party shall be
in writing sufficiently given if: (i) delivered personally, (ii) transmitted by
fax or other form of recorded communication tested prior to transmission, (iii)
sent by registered or certified mail return receipt requested, postage prepaid,
or (iv) sent by commercial overnight courier with written verification of
receipt to such Party:

      To GE:

            Name:      General Counsel
            Address:   GE Medical Systems
                       3000 N. Grandview Blvd W-641
                       Waukesha, WI 53188

            [CONFIDENTIAL]

            With a copy to:

      [CONFIDENTIAL]

      To ART:

            Name:      General Counsel
            Address:   ART Advanced Research Technologies Inc.
                       2300 Alfred- Nobel Boulevard,
                       Saint-Laurent, Quebec,
                       Canada, H4S 2A4

                                                                              31
<PAGE>

            Telephone: 514-832-0777
            Fax:       514-832-0778

      With copies to:

            [CONFIDENTIAL]

All communications will be sent to the addresses set forth above or to such
other address as may be designated by a Party by giving Notice to the other
Party pursuant to this Section. Any Notice personally delivered to the Party to
whom it is addressed as provided in this Section shall be deemed to have been
given and received on the day it is so delivered at such address, provided that
if such day is not a Business Day then the Notice shall be deemed to have been
given and received on the Business Day next following such day. Any Notice
transmitted by fax or other form of recorded communication shall be deemed given
and received on the first Business Day after its transmission. Any Notice given
by mail shall be deemed to be given and received three (3) calendar days after
having been sent. Any Notice given by overnight courier shall be deemed to be
given three (3) calendar days after deposit with carrier.

16.11 Counterparts

This Agreement may be executed in any number of counterparts and each such
signed counterpart shall for all purposes be deemed to be an original.

                                                                              32
<PAGE>

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

                                 ART ADVANCED RESEARCH TECHNOLGIES INC.

                                 By:
                                    --------------------------------------------
                                    Name: Micheline Bouchard
                                    Title: President and Chief Executive Officer

                                 GENERAL ELECTRIC COMPANY

                                 By:
                                    --------------------------------------------
                                    Name: [CONFIDENTIAL]
                                    Title: [CONFIDENTIAL]

                                                                              33
<PAGE>

                                   SCHEDULE A

             ART SoftScan Intellectual Property Rights and Contracts

                                 [CONFIDENTIAL]

                                                                              34

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