Document:

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                                                                  EXHIBIT 10.14

                            MASTER PURCHASE AGREEMENT
                                   NO. 990901

       This Agreement effective as of this first day of September 1999, by and
between CTI PET SYSTEMS, INC., a Tennessee Corporation with offices at 810
Innovation Drive, Knoxville, TN 37932-2571, USA (hereinafter "Buyer") and
HAMAMATSU, CORPORATION with offices at 360 Foothill Road, Bridgewater, NJ 08807
(hereinafter "Seller").

                                   WITNESSETH:

WHEREAS, Buyer desires to purchase and Seller desires to sell certain products
either distributed by or for Seller or designated or manufactured by or for the
Seller as of the date hereof, or developed for manufacture or sale by or for
Seller in the future, and all supplies and services necessary in relation hereto
as set forth herein.

NOW, THEREFORE, in consideration of the foregoing and the mutual covenants and
agreements set forth herein, the parties agree as follows:

1.     EFFECTIVE DATE AND CONTRACT TERM.

       This Agreement shall be effective on the day and year first above written
       and shall continue until August 31, 2004.

       1.1.   SUPERCESSION OF PREVIOUS AGREEMENT.

              None.

       1.2.   PRODUCTS

              Subject to the terms and conditions hereof, Buyer from time to
              time may purchase and Seller agrees to sell such products as are
              identified in Exhibit A attached hereto.

       1.3.   SPECIFICATIONS FOR PRODUCTS.

              All products supplied by Seller here under shall be furnished in
              accordance with all terms and conditions of this agreement, as
              well as all specifications set forth in Exhibit A attached hereto
              or any subsequent engineering change orders relating thereto and
              approved by Buyer consistent with the terms and conditions of the
              Agreement.

2.     PURCHASE OF PRODUCTS.

       2.1.   EXCLUSIVE METHOD.

              No products shall be purchased or sold by virtue of execution of
              this Agreement alone, but shall require the issuance of one or
              more purchase orders by the Buyer's Purchasing Department. Such
              purchase orders shall reference this Agreement and shall make it a
              part thereof.

       2.2.   DELIVERY DATE.

              On each purchase order submitted to Seller, Buyer shall specify
              one or more delivery dates. The parties shall agree on such
              delivery dates in advance of Buyer's issuance of such purchase
              orders. Seller agrees to ship all products

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              ordered here under, so that such products will be delivered to
              Buyer's specified location on the delivery dates specified in
              Buyer's purchase orders indicated as PTA (Promised to Arrive Date
              - (-5, +2 days)). Delivery shall not be accelerated or delayed by
              Seller without the prior written consent of Buyer's Purchasing
              Department.

       2.2.1  LATE DELIVERY

              If more than fifty percent (50%) of PMTs delivered during one
              calendar quarter are more than ten (10) business days late in
              meeting the scheduled PTA, then Buyer may elect to:

              1. cancel, the order(s) experiencing the delay as well as any
                 other pending order(s),

              2. terminate this Agreement for Default,

              3. claim for damages suffered.

3.     PRICE AND PAYMENT TERMS.

       3.1.   PRICES

              Prices for the products are set forth in Exhibit "B" of this
              Agreement.

       3.2.   NO ADDITIONAL CHARGES

              Unless otherwise expressly provided herein, Buyer shall not be
              responsible for any additional charges of any kind, unless Buyer's
              Purchasing Department specifically agrees in writing and in
              advance to incur liability for any such additional charges. Any
              changes in the import/export taxes/tariffs will be discussed and
              an equitable adjustment will be made to the unit price of
              products.

       3.3.   INVOICING AND PAYMENT

              Seller will issue an invoice for each shipment on or after the day
              of shipment. Each invoice shall reference the applicable Purchase
              Order number. Invoices shall be mailed to: CTI Inc., Accounts
              Payable Department, 810 Innovation Drive, Knoxville, TN 37932.

              Unless otherwise agreed in writing, all payments due hereunder
              shall be due net (30) thirty days from invoice date.

              Credits due to rejection of product within 30 days of receipt, or
              discrepancies on payment shall be deducted from subsequent
              payments.

4.     SCHEDULING AND RESCHEDULING OF ORDERS

       4.1.   PROCEDURE.

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              The Buyer will purchase PMTs from the Seller upon qualification of
              the product over the period set by this contract (see Exhibit B).
              These tubes will be released under separate purchase orders
              according to this Master Purchase Agreement. Buyer reserves the
              option to reschedule quantities of any products on order. Buyer
              shall give Seller sixty (60) days written notice prior to the
              Promise to Arrive Date (PTA). The actual revised delivery schedule
              will be agreed upon by both parties.

5.     LIMITATIONS OF LIABILITY.

       5.1.a. SELLER WILL NOT UNDER ANY CIRCUMSTANCES, WHETHER AS A RESULT OF
       BREACH OF CONTRACT, BREACH OF WARRANTY, TORT OR OTHERWISE BE LIABLE FOR
       CONSEQUENTIAL, INCIDENTAL, SPECIAL, OR EXEMPLARY DAMAGES INCLUDED, BUT
       NOT LIMITED TO, LOSS OF PROFITS OR REVENUES, LOSS OF USE OR DAMAGE TO ANY
       ASSOCIATED EQUIPMENT, COST OF CAPITAL, COST OF SUBSTITUTE PRODUCTS,
       FACILITIES OR SERVICES, DOWNTIME COSTS, OR CLAIMS OF BUYER'S CUSTOMERS.

       5.1.b. SELLER'S LIABILITY ON ANY CLAIM OF ANY KIND FOR ANY LOSS OR DAMAGE
       ARISING OUT OF, RESULTING FROM, OR CONCERNING ANY ASPECT OF THIS
       AGREEMENT OR FROM THE GOODS OR SERVICES FURNISHED TO BUYER SHALL NOT
       EXCEED THE PRICE OF THE SPECIFIC PRODUCT WHICH GIVES RISE TO THE CLAIM.

       5.1.c. SELLER WILL NOT BE SUBJECTED TO ANY LIABILITY, WHETHER IN
       CONTRACT, WARRANTY, TORT OR OTHERWISE, ON ANY CLAIM FOR LOSS OR DAMAGE
       CONCERNING PRODUCTS, PARTS, ADVICE, ASSISTANCE OR SERVICE WHICH SELLER
       FURNISHED TO BUYER AS A BUSINESS COURTESY, BUT ARE NOT REQUIRED HERE
       UNDER.

       5.1.d. THE WARRANTIES AND REMEDIES SET FORTH HEREIN DO NOT APPLY TO GOODS
       WHICH HAVE BEEN MISUSED, INADEQUATELY MAINTAINED OR STORED, OR
       INCORRECTLY OR NEGLIGENTLY INSTALLED OR SERVICED.

       5.2. IN NO EVENT SHALL BUYER BE LIABLE FOR ANTICIPATED PROFITS INDIRECT,
       SPECIAL, INCIDENTAL OR CONSEQUENTIAL DAMAGES. BUYERS LIABILITY ON ANY
       CLAIM OF ANY KIND FOR ANY LOSS OR DAMAGE ARISING OUT OF THIS AGREEMENT OR
       ANY PERFORMANCE HERE UNDER, SHALL IN NO CASE EXCEED THE PRICE ALLOCABLE
       TO THE GOODS OR SERVICES OR UNIT THEREOF WHICH GIVES RISE TO THE CLAIM.

6.     CHANGES

       6.1.   BUYER CHANGES.

              Upon written notice to Seller, Buyer from time to time may direct
              changes in design specifications relating to any order for
              product(s) placed thereunder. Within 30 days of receipt of Buyer's
              change notice, Seller shall deliver to Buyer a quotation (or a
              request for an extension beyond 30 days) detailing the impact of
              such change, if any, on price, lead-times, and ability to
              manufacture

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              the product(s). Buyer retains the right to accept or reject any
              such quotation. Rejection of any such quotation shall have the
              effect of suspending Buyer's change notice. All quotations
              required of Seller under this paragraph 6.1 shall include only
              those net price increases made necessary because of Buyer's
              changes. All price savings resulting from buyer's changes shall be
              shared equally by Buyer and Seller for 12 months. After 12 months
              all price savings resulting from Buyer's changes will be passed on
              to the Buyer.

       6.2.   SELLER CHANGES.

              Seller hereby represents and warrants that it shall not change the
              design of the product(s) affecting form, fit, function, spares,
              specifications, or manufacturing processes specified with respect
              to the manufacture of any product(s), which changes shall or may
              have an adverse impact on the manufacturing or performance
              specifications for the product(s), without the prior written
              consent of the Purchasing Department of Buyer.

       6.3    NEW PRODUCTS

              If Seller starts marketing new generation products which are to
              replace products hereunder, Buyer shall have the right to either
              replace products by such new products or add such new products to
              this Agreement.

7.     SHIPPING

              All prices are DDP CTI PET Systems. Seller shall ensure product is
              shipped on a timely basis to meet all Promise to Arrive
              commitments. Should Seller fail to ship on said basis, Seller
              shall bear the cost of all premium freight required to meet
              Buyer's immediate delivery requirements.

8.     WARRANTY.

              Seller's Standard Warranty applies. See Exhibit C.

       8.1.   TERMS OF WARRANTY.

              The warranty period for newly manufactured items shall extend
              fifteen (15) months from the actual date of delivery or twelve
              (12) months from the date of installation at Buyer's customer,
              whichever is earlier. All warranty periods identified in this
              Paragraph 8.1 shall be suspended in the event of downtime caused
              by or relating to defects in the products or component parts
              thereof and such warranty periods shall resume only upon repair or
              replacement of such products or component parts thereof.
              Suspension of the warranty period will only become effective upon
              return of the defective item to Seller.

       8.2.   INVENTORY.

              Seller agrees to maintain a target minimum finished goods
              inventory (FGI) of 5 weeks for the product identified in Exhibit A
              based on the forecasted delivery rate at that time. Such material
              may be used to temporarily replace defective product or to support
              accelerated production requirements. The amount so quoted is a
              target, which Seller will use reasonable efforts to meet. Failure
              to meet these targets during any period of the contract shall not
              constitute a basis for termination of contract. Seller will manage
              the FGI such that at the

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              end of the contract, the level of FGI is at or near zero. In the
              event that a PO is cancelled, any FGI up to the target level will
              be purchased by the Buyer.

9.     PATENT AND OTHER PROPRIETARY RIGHTS INDEMNIFICATION.

              Seller will defend, indemnify and hold Buyer and its customers
              harmless against all liability and expenses arising from actual or
              claimed infringement of any domestic or foreign patent, trademark
              copyright or other rights, misappropriation of trade secrets or
              breach of confidential relationship with respect to the goods or
              services covered by this Agreement. If use of product sold here
              under is enjoined as a result of any claimed infringement, Seller
              will, without in any way limiting the foregoing, and at its
              expense,

                (a) procure for Buyer the right to continue using the product;
                or,

                (b) replace or modify the product so that it becomes
                non-infringing; or

                (c) remove the product and refund the Buyer all monies paid
                therefore and release Buyer from any further liability under
                this Agreement.

              To the extent that the items ordered are manufactured to designs,
              drawings and specifications or instructions furnished by Buyer,
              Buyer agrees to indemnify and hold the Seller harmless from any
              expense, loss, cost, damage or liability of any kind which may be
              incurred because of any infringement or alleged infringement of
              domestic and foreign patent rights with respect to such items of
              the use of such items in combination with other items and to
              defend, as its own cost and expense, any action or claim in which
              such infringement is alleged. Buyer shall promptly notify Seller
              of any such action and shall provide Seller an opportunity, at
              Seller's option, to participate in any defense of such action or
              claim at Seller's own expense. The terms of this section shall
              survive the termination of this Agreement for a period of ten (10)
              years.

10.    INDEMNITIES.

       10.1.  INDEMNITY. (Products and Completed Operations).

              Seller agrees to indemnify, hold harmless and defend Buyer, its
              successors and assigns for all losses, claims, and defense costs
              for injury, death, or property damage to the extent caused by the
              negligence or strict liability of Seller in the manufacture or
              design of products supplied to Buyer's selling chain. The terms of
              this paragraph shall survive the expiration or termination of this
              Agreement.

       10.2.  INDEMNITY. (Products and Completed Operations).

              Buyer agrees to indemnify, hold harmless and defend Seller, its
              successors and assigns for all losses, claims, and defense costs
              for injury, death, or property damage to the extent caused by the
              negligence or strict liability of Buyer in the manufacture or
              design of products supplied to Buyer's selling chain. The terms of
              this paragraph shall survive the expiration or termination of this
              Agreement.

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11.    TERMINATION.

              Each of the following events shall constitute a default hereunder
              and either party may terminate this Agreement if the other Party
              defaults in any obligation hereunder for a period of 30 days
              following written notice and failure to correct that default;

                1.) Files a voluntary petition in bankruptcy, which is not
                discharged within 90 days;

                2.) Is adjudged bankrupt;

                3.) Has a court assume jurisdiction of its assets under a
                Federal Reorganization Act;

                4.) Has a trustee or receiver appointed by court for all or a
                substantial portion of its assets;

                5.) Becomes insolvent or suspends business; or

                6.) Makes an assignment of its assets for the benefit of its
                creditors.

                Buyer may by 90 days written notice of default to Seller
                terminate this Agreement, or any purchase order placed here
                under, if Seller:

                1.) consistently fails to deliver in accordance with the
                delivery dates specified in any order placed hereunder, or

                2.) consistently fails to replace or correct defective or
                non-conforming product in accordance with the terms and
                requirements of this Agreement, or

                3.) consistently fails to perform any of the other significant
                obligations of this Agreement, and does not correct such failure
                within a commercially reasonable time after receipt of written
                notice from Buyer specifying such failure. Said notice shall
                include a reasonably detailed description of any such failures.

                4.) Failure by Seller to meet required ISO 9001 practices may
                constitute cause for default if Seller does not implement
                mutually agreed upon and verified corrective action within a
                reasonable amount of time (30 days unless otherwise agreed to
                by the parties).

       11.1.  BUYER'S LIABILITY UPON TERMINATION/ORDER CANCELLATION

              If Buyer terminates this Agreement or any firm order for default,
              Buyer shall be liable for cancellation charges including the costs
              of raw materials, work in process and finished goods purchased and
              manufactured for firm orders. Seller shall make all reasonable
              efforts to limit this cost by attempting to return Products or
              components thereof to suppliers.

              If Buyer terminates this Agreement or any firm order for its
              convenience, or if Seller terminates for default, Buyer shall be
              liable for cancellation charges including the costs of raw
              materials, non-cancelable orders with suppliers, work in process
              and finished goods purchased and manufactured for firm orders plus
              a 20% mark up.

12.    SPARE AND REPLACEMENT PARTS.

       12.1.  AVAILABILITY OF PARTS.

              For a period of two (2) years from the date of the last delivery
              of products under this Agreement, Seller shall maintain in
              inventory a sufficient stock of spare and replacement parts and
              accessories to permit complete, prompt,

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              competent and efficient repair and maintenance of the products. In
              the event Seller or its suppliers, or both, should stop doing
              business or should terminate the manufacture or distribution of
              such components, subassemblies, spare parts, or replacement parts,
              Seller will notify Buyer with 12 months notice of termination or
              obsolescence of the product and offer the Buyer the right to make
              a reasonable all-time final purchase.

       12.2.  DELIVERY OF SPARE AND REPLACEMENT PARTS.

              Seller shall fill Buyer's orders for spare and replacement parts
              and shall ship the same to Buyer within ten (10) working days of
              receiving Buyer's order. In the event Seller is unable to ship ten
              (10) working days, both parties shall mutually agree to negotiate
              new ship dates.

       12.3.  MAINTENANCE AND REPAIR.

              Repairs and replacements provided by Seller are to be completed by
              Seller and returned to Buyer within forty (40) working days of
              receipt of product by Seller.

       12.4.  REPAIRS/REVISION LEVEL.

              All Seller repairs will be completed to the revision level
              currently on order unless that revision level makes the part
              incompatible with lower revision. Any questions associated with
              revisions will be addressed in writing to the Buyer's
              representative as shown in section 17.

13.    QUALITY ASSURANCE

              It is understood and agreed that the quality of all items to be
              delivered under Buyer's Purchase Orders shall be in conformance
              with the standards set forth in Buyer's product specifications.
              Seller is responsible, and will ensure that all Products conform
              to such quality standards. Buyer retains the right to inspect
              items to be purchased hereunder to assure conformance with such
              Product specification.

              Seller shall have and maintain ISO 9001 certification and agrees
              to notify Buyer promptly (within 15 calendar days) and in writing
              in the event of any change in Seller's status as it relates to
              quality assurance such as, but not limited to, ISO certification,
              Government audit, or items of a similar nature.

              All work performed in conjunction with this Agreement shall be in
              compliance with the most current and relevant ISO 9001 as it
              pertains to suppliers. Specifically that (a) Seller documents and
              is able to verify that it follows its own manufacturing, test, and
              inspection processes; (b) that any discrepancies to these
              processes are identified, corrected, and verified; (c) that all
              required manufacturing test and inspection records, complaints,
              RMAs, corrective actions, and variance reports are retained for a
              minimum of 10 years and made readily available to Buyer for review
              during that period; (d) that all manufacturing test and inspection
              equipment is maintained properly and calibrated as required; and
              (e) that the manufacturing, test, and inspection processes are
              adequate to ensure that all product specifications provided by

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              Buyer are met. Seller's Quality Assurance shall maintain
              compliance of final production through vigilant monitoring of all
              phases of production.

              During Seller's performance of any Purchase Order or contract
              which incorporates this Agreement, Seller agrees to allow and to
              cooperate with Buyer to periodically review, verify, and perform
              analysis of Seller's quality control and assurance systems and
              manufacturing processes for the purpose of confirming compliance
              to the ISO 9001.

              Workmanship standards, in order of precedence, shall be: (1) Buyer
              product specifications and purchase order; (2) Seller
              specifications, (3) Seller workmanship standards.

              Seller agrees to notify Buyer promptly and in writing if Seller
              determines or has any reason to believe it has delivered a
              defective product to Buyer and to identify that product to the
              maximum practical extent.

              In case of a serial defect in PMTs, Seller shall, at Buyer's
              option, be obliged either to supply new PMTs free of such serial
              defect or refund the full purchase price paid for such defective
              PMTs. A serial defect shall be presumed if more than five percent
              (5%) of the PMTs supplied under a single purchase order show the
              same defect. In this case, the Buyer may elect to return the
              entire lot to Seller for evaluation and appropriate action(s).
              Notwithstanding the foregoing, if Seller is unable to timely
              remedy the serial defect, by supplying PMTs free of such defect,
              Buyer may terminate this Agreement as per Section 11.

              Seller is expected to deliver products with acceptance rates of
              99% or better. It is understood that there will be a learning
              curve on new products; however, higher reject rates will not be
              tolerated in the long term.

              Seller shall conduct inspection and testing of the completed
              product to assure compliance with all Buyer specifications. Seller
              shall maintain inspection and test data for a minimum period of 10
              years.

              Seller shall provide a Certificate of Conformance (C of C) with
              each delivery, which includes the serial number of each product in
              the shipment. The C of C shall warrant that the product was
              produced in accordance with Seller's ISO 9001 Quality System, and
              that all Purchase Order requirements and Product Specifications
              have been met. The C of C shall be signed by appropriate
              individuals and dated.

              At some point the Buyer may choose to "validate" the Seller for a
              particular product. This internal process consists of having the
              Seller submit a certain quantity of certified product and
              verifying that all specifications have been met and all
              documentation is in order. Once a product/supplier is validated,
              that product is received directly into Buyer's production with no
              incoming inspection required. It is imperative that all incoming
              products and documentation are 100% correct for every shipment.
              Buyer's decision not to inspect or test product at incoming does
              not release the Seller of its responsibilities to deliver

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              conforming product. Seller is responsible for nonconforming
              product found in process, at point of consumption, or at higher
              levels of product completion.

14.    FORCE MAJEURE.

              Force Majeure shall mean act of God, acts, regulation or decrees
              of any Government (de facto or de jure), natural phenomena such as
              earthquake, floods, fires, riots, wars, shipwrecks, strikes,
              freight embargoes, lockouts, and other causes similar to the
              foregoing which are beyond the reasonable control of the parties
              and which prevent either or both parties from performing their
              respective obligations under this Agreement in whole or in part.
              In the event of force majeure, the party affected shall notify the
              other within seven (7) days thereof, specifying the event and the
              probable consequences thereof. In the event that performance of
              substantially all obligations herein, cannot be restored within a
              mutually agreeable time frame, then this Agreement may be
              terminated by ten (10) days notice without further liability of
              either party for damages on account of such termination. In the
              event this Agreement is not terminated under this Paragraph 16.2,
              the parties will cooperate with each other to restore as promptly
              as possible full and complete performance here under and all
              rights and obligations of the parties shall remain in force and
              enforceable, with reasonable revisions to delivery schedules as
              may be mutually agreed.

15.    PROPRIETARY INFORMATION

              Buyer and Seller agree to keep in confidence and not disclose to
              others all knowledge, information and data furnished to it by the
              other and claimed by either to be proprietary, provided such
              proprietary information is given in writing and such writing is
              marked to indicate the confidential nature of the information and
              the disclosing party's claim of ownership. Buyer and Seller agree
              that neither shall use or reproduce for use in any way any
              proprietary information of the other except in furtherance of the
              relationship set forth in this Agreement. Buyer and Seller agree
              to protect the proprietary information with the same standard of
              care and procedures which each uses to protect its own proprietary
              information. This paragraph shall not be applicable and shall
              impose no obligation on either party with respect to any portion
              of proprietary information which:

              A.) Was at the time received or which thereafter becomes, through
              no act or failure on the part of either party, generally known or
              available to the public;

              B.) Is known to either party at the time of receiving such
              information as evidenced by documentation then rightfully in the
              possession of either party;

              C.) Is furnished by either party to a third party without
              restriction by that third party on disclosure;

              D.) Is thereafter rightfully furnished to either party by third
              party without restriction by that third party on disclosure; or

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              E.) Is released from restrictions imposed hereunder by written
              release given by the owner of the information.

              All technical data, hardware, and intellectual property including,
              but not limited to, designs, engineering and manufacturing
              drawings, specifications, standards, process information, manuals,
              technical reports, computer software and related information,
              tooling, fixtures, test equipment and other hardware purchased
              and/or furnished by Buyer and bills of material first produced
              and/or uniquely resulting from the performance of this Agreement
              shall be the sole property of Buyer. Seller shall not use any such
              items for any purpose other than the performance of this Agreement
              without express written permission of Buyer.

16.    GENERAL

              A) This Agreement may be amended upon the mutual written consent
              of the parties hereto. No modification, termination, extension,
              renewal or waiver of any provision of this Agreement shall be
              binding upon either party unless made in writing and signed by an
              authorized officer of both parties.

              B) This Agreement supersedes all proposals, oral or written, and
              all negotiations, conversations or discussions heretofore had
              between the parties hereto as to the subject matter hereof.

              C) This Agreement shall govern all Purchase Orders, which contain
              a reference to this Agreement, and the terms, and conditions
              herein shall take precedence over any conflicting terms of any
              such Purchase Order. Any conflicts which might exist between this
              Agreement and Purchase Order terms and conditions referencing this
              Agreement shall be resolved in this order: 1) this Agreement; 2)
              front side of Purchase Order; 3) back side of Purchase Order; 4)
              Seller's proposal.

              D) If any clause, term or provision of this Agreement shall be
              judged invalid by any court or administrative agency having
              jurisdiction over performance of the Agreement, such invalidity
              shall not affect the validity or operation of any other clause,
              term or provision; and such invalid clause, item or provision
              shall be deemed to have been deleted from this Agreement.

              E) This Agreement and its performance shall be governed by,
              subject to, and construed in accordance with the laws of the State
              of Tennessee, U.S.A.

              F) If a dispute arises out of or relates to this Agreement or the
              breach thereof, the Parties agree that in the first instance they
              shall enter into good faith negotiations to resolve such dispute
              by mutual agreement.

              G) This Agreement is intended for the benefit of the parties
              hereto and their permitted assigns, and no other person shall be
              entitled to rely upon this Agreement or be entitled to any
              benefits under this Agreement. This

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              Agreement shall not be assignable by either Party without the
              prior written consent of the other Party hereto.

              H) Each party agrees that information to be furnished to the other
              hereunder will, to the best of its knowledge and belief, be
              correct. Each party agrees to notify the other promptly in the
              event that information provided by the supplying party contains an
              error or omission at such time that the furnishing party modifies
              such information in any respect.

              I) Neither party shall, for any purpose, be deemed to be an agent
              of the other party and the relationship between the parties shall
              only be that of independent contractors.

              J) Any tool or special equipment furnished by the Buyer to Seller
              or acquired by Seller exclusively for use in connection here with
              shall remain the property of the Buyer. All other tooling remains
              the property of the Seller. Seller agrees to use such tools and
              equipment only in the manufacture, testing, or installation of the
              products for Buyer or for Buyer's customers or end users, and
              Seller agrees to return such tools and equipment to Buyer at
              Buyer's expense immediately upon any request by Buyer to do so. If
              Buyer provides tooling, the Buyer will mark it as their property.

              K) For this Agreement, "in writing" shall mean written either on
              paper and faxed or mailed, or written electronically and sent via
              e-mail.

              L) The headlines contained in this Agreement are for the
              convenience of reference only and shall not be considered in
              construing this Agreement.

              M) Seller shall not, and shall require that its subcontractors and
              suppliers of any tier shall not cause or permit to be released any
              publicity, advertisement, news release, public announcement, or
              denial or confirmation of same, in whatever form, regarding any
              aspect of this Agreement or the products or program to which they
              pertain without Buyer's prior written approval.

              N) Any notice in connection with this Agreement must be made in
              writing and if by mail, by certified mail, return receipt
              requested, and shall be deemed to be given and received on the
              date of actual receipt by the addressee at the address listed
              below:

              O) The failure of any party hereto at any time to require
              performance by the other party of any of its obligations hereunder
              shall not in any way affect the full right to require such
              performance at any time thereafter. The waiver by either party of
              any remedy with respect to any breach of any particular
              provision(s) does not constitute a waiver of any other breach of
              other provisions.

17.   NOTICES.

              Any notice or other communication required or permitted to be
              given hereunder shall be effective only when received and shall be
              directed to the following parties:

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a.    If to Buyer:                      b:    If to Seller:
      CTI PET Systems, Inc.                   Hamamatsu Corporation
      810 Innovation Drive                    360 Foothill Road
      Knoxville, TN 37932-2571                Bridgewater, NJ 08807
      USA                                     USA

      Attn: Mr. Juel Hensley                  Attn: Dr. David Leinwand
            Purchasing Manager                      Vice President of Operations

18.   AUTHORITY TO EXECUTE AGREEMENT

       In executing this Agreement, the undersigned hereby represents that they
       have read carefully, the foregoing terms of this Agreement on behalf of
       their respective interests, that they have the authority to execute this
       Agreement and that they have signed the same as their own respective free
       acts and with the expressed authority to do so on behalf of their
       respective interests.

CTI PET Systems, Inc.                         Hamamatsu Corporation

/s/ Ronald Nutt                               /s/ David Leinwand
------------------------------------          ---------------------------------
By: Dr. Ronald Nutt                           By: Dr. David Leinwand
Executive Vice President                      Vice President of Operations

Date: 11/1/99                                 Date: 1/16/99

                                                                           12/14
<PAGE>

                                   EXHIBIT A:

<Table>
<Caption>
HAMAMATSU            CTI
PART #              PART #          REVISION     DESCRIPTION
---------     ----------------      --------     -----------
<S>           <C>                   <C>          <C>
R1450-12         5410008-00             B        19mm round PMT

R7899-01      To Be Determined                   25mm round PMT

R7515         To Be Determined                   2" square assembly
</Table>

For Pricing, see Exhibit B and Purchase Orders which reference this Agreement.

Rejection Criteria:

o      PMT which fails to meet Buyer's or Seller's specifications.

o      Failure or intermittent failure due to internal shorts

o      PMTs which are unfit for use due to failure to meet workmanship standards
       of Seller. (e.g., tinned leads which snap off at the bulb as a result of
       normal handling at Buyer during the course of mounting bleeder networks.)

o      Failure to meet Buyer standard stability monitoring criteria

PMTs which are rejected by Buyer shall be processed as follows:

o      Buyer purchasing will notify Seller of the quantity and cause of
       rejection and request return authorization.

o      Seller will issue a return authorization number to Buyer

o      Buyer will return rejected PMTs to Seller at Seller's expense

o      Seller will evaluate rejected PMTs, prepare a disposition and send report
       along with corrective action as appropriate to Buyer's representative
       within 30 days (see section 17) and issue appropriate credit

o      Seller will replace PMTs on the appropriate purchase order and line and
       re-invoice

o      Any dispute regarding rejected PMTs will be resolved between Buyer
       purchasing and the Sellers designated representative.

                                                                           13/14
<PAGE>

                                    EXHIBIT B

                        PRICING FOR PHOTOMULTIPLIER TUBES

Pricing will be as shown below for the time period September 1, 1999 through
August 31, 2001. Pricing for the three years beginning September 1, 2001 will be
the price from the previous year adjusted *.

*
$ *

PRICING:

<Table>
<S>                   <C>                  <C>           <C>
R1450-12 (19MM)       5410008-00           *             *
                                           *             *
                                           *             *
                                           *             *
R7899-01 (1")         TBD                  *             *
                                           *             *
                                           *             *
                                           *             *
R7515 (2")            TBD                  *             *
                                           *             *
                                           *             *
                                           *             *
                                           *             *
</Table>

Pricing will be based on forecasted requirements. If the actual volume delivered
is less that the forecasted volume for a given year such that the unit price
would have been higher for the actual volume, an equitable adjustment will be
made for the products delivered at the higher price.

*Note: Prices shown are for * pieces but are offered for lower volumes for
qualification purposes only.

                                                                           14/14

* Omitted information is the subject of a request for confidential treatment
  pursuant to Rule 406 under the Securities Act of 1933 and has been filed
  separately with the Securities and Exchange Commission.<PAGE>
                                                                   EXHIBIT 10.15

              CRYSTAL PRODUCTION AND TECHNOLOGY TRANSFER AGREEMENT

         This CRYSTAL PRODUCTION AND TECHNOLOGY TRANSFER AGREEMENT is made and
entered into as of the first day of April, 1999, by and between CTI, INC., a
Tennessee corporation, 810 Innovation Drive, Knoxville, Tennessee 37932, U.S.A.
(hereinafter referred to as "CTI"), and * (hereinafter referred to as " * ").

                                    RECITALS

CTI is engaged in research and development, manufacture and sale of positron
emission tomography (hereinafter referred to as "PET") technologies, and other
technologies including detector technologies. CTI is licensed by Schlumberger
Technology Corporation for the world wide exclusive right to manufacture and
sell Lu(2)SiO(5): Ce single crystals (hereinafter referred to as "LSO") which
can be used in such applications as gamma-ray detection for PET and other
detector technologies. * engages in research and development, production, and
sale of single crystals which can be used for various applications. CTI desires
to engage * to produce LSO for the use by CTI on the terms and conditions set
forth below.

                                   AGREEMENTS:

         IN CONSIDERATION OF the forgoing premises, and the mutual terms,
covenants and conditions contained herein, CTI and * mutually agree as follows:

         1. Production Facility.

                  a. * agrees to dedicate at least fifteen (15) and up to twenty
         five (25) high temperature furnace systems for LSO crystal growth by *
         technique for CTI within the next 24 months starting July 1999. Such
         furnaces must be sufficient for the growth of LSO crystals which meet
         the single crystal specifications set forth in Exhibit A attached
         hereto.

                  b. CTI agrees by initiating this contract commitment and by
         agreeing to enter into an annual purchase contract for LSO to assist *
         in financing construction of these new furnaces including power back-up
         systems and the necessary Iridium crucibles, rods and lids located at
         the * facility for growth of LSO crystals.

                  c. The * crystal production facility will include trained
         staff of engineers and technicians as necessary to keep all the
         furnaces in continuous operation and to produce LSO crystals meeting
         the specifications in Exhibit A.

                  d. * may use the furnaces described above dedicated to CTI for
         * purposes when they are not being utilized for CTI purposes. * agrees
         to immediately return the furnace systems to the dedicated use of CTI
         upon the request of CTI.

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

<PAGE>

         2. Raw Materials; Production of Crystals:

                  a. CTI will supply to * all the 99.99% pure Lu(2)O(3) for LSO
         crystal growth by * for use by CTI. * will promptly utilize the
         furnaces dedicated to production for CTI to timely produce LSO crystals
         for CTI which meet the specifications set forth in Exhibit A, and
         promptly deliver such crystals to CTI.

                  b. * represents and warrants to CTI that LSO crystals supplied
         to CTI hereunder will be produced to the highest quality standard of
         its technology limit, and free from defect in material and workmanship.
         It will comply with the specifications set forth in Exhibit A.

                  c. * will produce LSO crystals continuously based on an
         open-end purchase order from CTI specifying the size, quantity and
         required delivery date. CTI shall supply the raw Lutetium material to *
         in a timely manner.

                  d. * will account for all the 99.99% Lu(2)O(3) supplied by CTI
         in terms of mass balance of Lu(2)O(3) by written record in form of
         Exhibit B attached hereto, or other mutually agreeable written record.

                  e. * will return to CTI upon request in a timely manner all
         LSO scrap for recovery of 99.99% Lu(2)O(3). CTT will allow reasonable
         amount of loss of Lu(2)O(3) due to loading, crucible cleaning, slab and
         block fabrication and finally accidental leakage or other unintentional
         loss such as massive power failure or other natural disasters.

                  f. CTI will provide to * the result of measurements and
         analyses of the crystal quality for * 's quality control program.

                  g. * will assist CTI to improve the LSO crystal production at
         CTI's Knoxville, Tennessee facility and to provide suggestions to
         reduce the cost of manufacture of LSO crystals in accordance with the
         licensing agreement set forth in section 5.b.

                  h. * and CTI will work together for the duration of this
         contract to increase light yield and reduce the cost of growing LSO
         crystals. This technical cooperation will take place of * 's facility
         and CTI's facility where personnel from * and CTI will be allowed to
         observe all the processes and equipment used for LSO production at both
         facilities. Within thirty (30) days after the execution of this
         contract, * will make its best effort to send technical personnel at
         CTI's expense to CTI's growth-facility to monitor and to modify the LSO
         growth process in order to increase both the crystal yield and light
         output of LSO crystals to a level comparable to that of *. CTI will
         make any necessary changes to the CTI crystal growth stations that will
         cause the * and CTI growth stations to be near identical.

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

                                      -2-
<PAGE>

         3. Purchase Requirements.

                  a. Provided that * can meet the quality standard set forth on
         Exhibit A and that * 's LSO manufacturing cost does not exceed * 's LSO
         manufacturing cost by more than * (*) percent, CTI will during the term
         of this Agreement, purchase from * (*) or more of CTI's need for PET
         and other detectors production, up to a maximum required amount not to
         exceed the amount of crystals produced by a maximum of twenty-five (25)
         furnace systems at * 's facility. In the case * cost exceeds CTI's by
         more than * %, * will have the right to audit CTI's cost.

                  b. As long as * can meet the contract requirement of crystal
         quality, delivery schedule and cost, and CTI has need for LSO, CTI
         shall not unilaterally reduce or terminate the purchase of LSO crystals
         from * without parallel reduction in production of LSO at CTI's
         Knoxville facility. CTI will have the right to accept any and all of
         the LSO crystals grown at the * facility exceeds the production set
         forth in 3.c. The production parity is defined as equal number of
         crystal pullers used at each facility. If CTI unilaterally reduces or
         terminates the purchase of LSO crystals from * without comparable
         reduction at CTI, CTI shall compensate * for the loss of net income
         based on the production capacity at * 's facility for the balance of
         the contract term.

                  c. If * produces LSO crystals hereunder satisfactorily and
         increases the number of furnace systems beyond the maximum of
         twenty-five (25) provided for in Section 3.a. above, CTI will negotiate
         with * in good faith towards an agreement to increase the percentage of
         CTI's crystal requirements to be provided by *:

         4. Price; Payment.

                  a. CTI will pay to * for LSO crystals provided hereunder
         meeting the specifications set forth on Exhibit A an amount per unit
         volume equal to the actual manufacturing cost of LSO plus * ( * )
         percent excluding the Lu(2)O(3) raw material cost. The price for 1999
         is $ * /cc of the slab volume excluding the Lu(2)O(3) raw material and
         this price will be adjusted retroactively at the end of 1999 based on
         actual LSO manufacturing cost plus * ( * ) percent. The actual LSO
         manufacturing cost will be confirmed by a CTI audit at the end of each
         year. The price for HRRT block will be adjusted to accommodate the
         extra material loss and the cost of the block fabrication.

         For year 2000 and beyond the price of LSO will be the average of the
         LSO manufacturing cost plus *(*) percent for year 2000 and the
         LSO manufacturing cost plus *(*) percent for the previous year.
         This provides * with an incentive to improve the manufacturing cost and
         a mechanism for CTI to obtain improvements in the technology.

                  b. * will invoice CTI on a weekly basis for crystals delivered
         by * to CTI. Each invoice shall identify the volume of LSO crystals
         delivered to CTI.

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

                                      -3-
<PAGE>

                  c. CTI shall pay * for crystals delivered and invoiced, at the
         prices set forth in Section 4.a. above, within thirty (30) days after
         receipt of invoice.

                  d. After the execution of this Agreement, CTI will allow * to
         continue production of LSO crystals using existing growth facility and
         existing price as defined in 4a during the loan application and
         construction period of the new crystal growth stations.

         5. Licenses.

                  a. CTI hereby grants to * a Limited royalty-free sublicense in
         and to all the technology, know-how and intellectual property rights
         related to the production of LSO granted to CTI under its Exclusive
         Patent and Technology License Agreement with Schlumberger Technology-
         Corporation dated February 1, 1995, as amended (the "Schlumberger
         License"), a copy of which is attached hereto as Exhibit C, to the
         extent necessary to, and for the sole purpose of, production of LSO for
         CTI hereunder. The term of this license shall be only for the term of
         this Agreement. Upon any termination of this Agreement, * shall return
         to CTI only such technology included in the Schlumberger License. *
         acknowledges and agrees that this Agreement, and the limited sublicense
         granted hereby, are subject to, and * agrees to be bound by, the terms
         of the Schlumberger License.

                  b. * hereby grants to CTI a limited royalty-free license in
         and to all the technology, know-how and intellectual property rights of
         * related to the production of LSO developed at * (the " *
         Technology"). The term of this license shall be only for the term of
         this Agreement.

                  c. CTI and * agree not to transfer nor hire employees from
         each other without mutual consent during the Agreement period and no
         less than three years after the expiration of the Agreement. If either
         party hires ex-employees of the other company, they will notify the
         company before the hiring occurs.

         6. Exclusivity. * agrees not to grow LSO for, or sell LSO to, any
entity other than CTI without the expressed written consent of CTI. CTI agrees
to sublicense the Schlumberger License exclusively to * during the entire
duration of this contract as long as * meets CTI's quality, delivery and cost of
LSO.

         7. CTI Production Facility. * acknowledges that CTI is developing at
its Knoxville, Tennessee facility and has the capability to produce LSO by the *
crystal growth process, both during and after the term of this Agreement, and
that nothing contained herein shall prohibit CTI from doing so. * acknowledges
and agrees that CTI shall be free to use without restriction any and all
information and know-how relating to the production of LSO obtained in
connection with this Agreement, whether obtained from * or elsewhere. CTI is
restricted from transferring to any of the LSO crystal growth technology to a
third party without a written consent from * during or after the Agreement.

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

                                      -4-
<PAGE>

         8. Term. The term of this Agreement shall begin on the date hereof and,
subject to the provisions of Section 9 hereof; continue for five (5) years
thereafter. By mutual agreement, this Agreement can be extended.

         9. Termination.

                  a. CTI and * may terminate this Agreement at anytime by mutual
         agreement. Such termination shall not relieve either party from
         liability for any breach of its obligation under this Agreement prior
         to termination.

                  b. In the event that either party hereto breaches this
         Agreement and has not cured such breach within thirty (30) days after
         written notice from the other describing such breach, then the
         non-breaching party shall be entitled to terminate this Agreement and
         pursue its legal remedies for such breach.

                  c. Upon termination of this Agreement for any reason, any
         remaining raw materials and supplies provided to * by CTI will be
         promptly returned to CTI. CTI agrees to purchase any finished and
         not-yet delivered LSO crystals at the price set forth prior to the
         termination.

         10. Confidentiality. The parties contemplate that, in the course of
performance under this Agreement, each party may furnish to the other
proprietary information confidential to the disclosing party. Each party agrees
not to disclose to others the proprietary confidential information of the other
party, and agrees to hold such information confidential in the same manner as it
holds its own confidential information. Provided, however, that in no event
shall either party be obliged to treat confidential any information that (i) can
be shown to have been known to or in the possession of either party prior to the
disclosure thereof by the other party; (ii) is or becomes known or generally
available to the public other than as a result of acts or omissions of such
party; or (iii) is made available to such party by the third party without
similar restriction or without violation by such third party of any Agreement
with the other party.

         11. Indemnification. Each party hereto will indemnify and hold harmless
the other from and against all liability, loss, cost or expense arising out of
or resulting from the indemnifying party's failure to comply with its
obligations hereunder, or any negligence or other wrongful conduct of the
indemnifying parry, its officers, employees or agents in their performance
hereunder. Provided, however, that notwithstanding the foregoing neither party
shall be liable to the other for consequential damages or lost profits.

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

                                      -5-
<PAGE>

         12. Resolution of Disputes.

                  a. All disputes and controversies between the parties hereto
         of every kind and nature arising out of or in connection with this
         Agreement as to the existence, construction, validity, interpretation
         or-meaning, performance, nonperformance, enforcement, operation,
         breach, continuation, or termination of this Agreement which cannot be
         settled promptly by agreement shall be submitted to a single arbitrator
         with experience in high technology, commercial matters to be chosen by
         the senior executive officers for each of the parties within thirty
         (30) days after demand for arbitration by either of the parties. If the
         parties cannot within such time agree on an arbitrator, the arbitrator
         shall be chosen under American Arbitration Association procedures from
         its panels of arbitrators with high technology commercial experience.

                  b. The arbitration hearing shall be held in Knoxville,
         Tennessee, if * initiates arbitration and in Orlando, Florida, if CTI
         initiates arbitration, or at such other place as the parties and the
         arbitrator agree, within forty-five (45) days after the dispute is
         submitted to an arbitrator. The Commercial Arbitration Rules of the
         American Arbitration Association, or such other rules and procedures as
         the arbitrator may determine, shall be utilized in the arbitration
         proceedings. The arbitration hearing shall be concluded in not more
         than two (2) days unless otherwise ordered by the arbitrator. The
         award on the hearing shall be made within thirty (30) days after the
         close of the submission of evidence at or in connection with the
         hearing. An award rendered by the arbitrator appointed pursuant to this
         Agreement shall be final and binding on the parties to such proceeding.
         Judgment on such award may be entered by any of the disputing parties
         in any court having jurisdiction over the parties.

                  c. The provision of this Section 11 of this Agreement shall be
         a complete bar and defense to any suit, action or proceeding instituted
         in any court or before any administrative tribunal with respect to any
         dispute or controversy arising out of or in connection with this
         Agreement. The arbitration provisions of this Agreement shall, with
         respect to any such dispute or controversy, survive the termination or
         expiration of this Agreement.

                  d. The parties shall each bear all of their respective
         arbitration cost and expenses; provided, however, that the parties
         shall share equally the cost and expenses of the arbitrator.

         13. Miscellaneous.

                  a. Modification. This Agreement may not be modified without a
         mutual consent of the parties hereto.

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

                                      -6-
<PAGE>

                  b. Severability. In the event that any clause of this
         Agreement is held invalid or unenforceable, it is agreed between the
         parties that the remainder of the Agreement will remain in effect and
         enforceable.

                  c. Waiver. The failure of either party at any time to require
         strict performance by the other party of any provision hereof shall in
         no manner affect the right of such party thereafter to enforce the
         same. The right of either party hereto to require strict performance by
         the other party of any terms or obligations imposed upon such other
         party by this Agreement shall not in any way be affected by any
         previous waiver, forbearance or course of dealing.

                  d. Applicable Law. This Agreement shall be governed by an
         interpreted in accordance with the laws of the state of Tennessee.

                  e. Force Majeure. If the performance under this Agreement by
         either party is prevented, restricted, or interfered with by reason of
         fire or other casualty or accident, strikes or labor disputes,
         inability to procure raw materials, power or other supplies, war,
         invasion, civil commotion, or other violence, or other similar act or
         conditions beyond the control of either party hereto, the party so
         affected shall, upon giving prompt written notice to the other party,
         be excused from such performance to the extent of such prevention,
         restriction, or interference, provided that the party so affected shall
         use its best efforts to avoid or remove such causes of nonperformance
         and shall continue performance hereunder with the utmost dispatch
         whenever such causes are removed. In the event that such prevention,
         restriction, or interference exceeds two (2) months, the other party
         shall have the right to terminate this Agreement.

                  f. Notices. Any notice hereunder must be in writing and may be
         given by certified mail, and shall be deemed to have been given when
         such registered or certified letter, properly addressed, is mailed; if
         given otherwise than registered and certified letter, notice shall be
         deemed to have been given when delivered.

         If such notice to be given to CTI, it shall be addressed as follows:

                  CTI, Inc.
                  810 Innovation Drive
                  Knoxville, TN 37932
                  Attention: Ronald Nutt

         If such notice is to be given to *, it shall be addressed as follows:

                  *
                  Attention:  *

                  g. Benefit; Assignment. The rights and obligations of the
         parties hereto shall bind and inure to the benefit of the parties and
         their respective successors and

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

                                      -7-
<PAGE>

         assigns. This Agreement shall not be assigned or transferred by either
         party, in whole or in part, without the prior written consent of the
         other party, which consent shall not unreasonably be withheld.

                  h. Relationship of Parties. This Agreement shall not construed
         as constituting the parties as a partnership joint venture or any other
         form of association which would impose on either party liability for
         the actions or failure to act on the other party.

                  i. Exhibits. The parties agree to work diligently on the
         exhibits and to finish the exhibits within thirty (30) days after the
         date of this contract.

         IN WITNESS WHEREOF, the parties, by their duly authorized
representatives, do execute this Agreement, intending to be legally bound, as of
the day and year first written above.

CTI, Inc.

By:      /s/ Ronald Nutt
   --------------------------------------------------
         Ronald Nutt, Ph.D.
         Senior Vice President
         And Technology Director

*

By:      /s/ *
   -----------------------------------------
         *
         President

         constituting the parties as a partnership joint venture or any other
         form of association which would impose on either party liability for
         the actions or failure to act on the other party.

         IN WITNESS WHEREOF, the parties, by their duly authorized
representatives, do execute this Agreement, intending to be legally bound, as of
the day and year first written above.

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

                                      -8-

<PAGE>

CTI, Inc.

By:      /s/ Ronald Nutt
   --------------------------------------------------
         Ronald Nutt, Ph.D.
         Senior Vice President
         And Technology Director

*

By:
   --------------------------------------------------
         *
         President

EXHIBITS to
CRYSTAL PRODUCTION AND TECHNOLOGY TRANSFER AGREEMENT

A.       Specifications for LSO crystals

         Amendments to Exhibit A:

                  (1) Light yield and energy resolution is based on current
                      material standard which is * of BGO and energy resolution
                      of *

                  (2) Even though the CTI's exhibit shows a complete boule, the
                      actual delivery is in slab and block form. CTI acknowledge
                      that there are losses of material due to cracking during
                      slicing, even though the crystal is crack-free prior to
                      cutting.

                  (3) Crystal cost to be determined by the formula proposed in
                      section 4.a.

                  (4) The cost of HRRT blocks will be calculated separately.

A.       Mass balance sheet

         Amendments to Exhibit B:

                  Calculation should allow reasonable loss of materials during
         hot loading, crucible leakage, crucible residual charge removal and
         cutting and fabricating into slabs or blocks. * will provide material
         loss calculation based on current LSO production.

B.       Determination of  * cost of production

                  The calculation is based on the actual cost of LSO crystal
         production at * during 1998. The calculation is based on "perfect
         growth" of 4 stations at *.

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

                                      -9-
<PAGE>

         The actual growth yield is much less. The calculation provides the
         absolute minimum cost of LSO crystals based on current technology.

         (A) Production yield (perfect growth):

         Total number of crystals produced per month per station = 3.5
                                                     2
         Total volume per LSO slab = [pie] x (3.1 cm)  x 1.0 cm = 30.2 cc
         Total number of slabs per crystal = 13
         Total volume of slabs per crystal = 390 cc
         Total volume yield per station per month = 390 x 3.5 = 1,365 cc

         (B) Production cost (actual value)

                  (1)    Equipment depreciation:

                         Cost per growth station plus two Iridium crucibles = *
                         Linear depreciation for 5 years = $ *
                         Cost of water cooling system per growth station = $ *
                         Linear depreciation for 5 years = $ *
                         UPS power back up system per growth station = $ *
                         Linear depreciation for 5 years = $ *

                         Total depreciation per station per month = $ *

                  (2)    Direct Expenses per station per month:

                         Electricity = $ *
                         Liquid nitrogen (plus tank rental) = $ *
                         Slab cutting and shipping = $ *
                         Furnace glass tube, insulation materials = $ *
                         Plant repairs and RF generator maintenance = $ *
                         Iridium crucible repair = $ *
                         Iridium crucible re-fabrication = $ *
                         Iridium leasing during fabrication = $ *
                         Silica and cerium oxide = $ *
                         Total cost per station per month = $ *

                  (3)    Labor and Office expenses:

                         Wages + overhead per month average for 1998 = $ *
                         Total number of operating growth stations = 6
                         Cost per growth station = $ *

                         Estimated per station cost with 20 LSO stations = $ *

                  (4)    Summary:

                         Total operating cost per station per month = $ *

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

                                      -10-
<PAGE>

                         Current cost based on 100% yield per cc of LSO = $ *
                         Current effective yield = *
                         Current effective cost of production per cc = $ *

                         Estimated operating cost based on 20 LSO stations = $ *
                         Estimated cost based on 100% yield per cc of LSO = $ *
                         Estimated effective yield = *
                         Estimated effective cost of production per cc = $ *
                         Estimated cost plus 25% profit = $ *

C.       Schlumberger License:

D.       * 's patent petition:

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

                                      -11-

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