Document:

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

                                                                  Exhibit 10.17

                           EXCLUSIVE LICENSE AGREEMENT

      THIS AGREEMENT made as of September 5th, 2003.

 BETWEEN:

      MOLECULAR INSIGHT PHARMACEUTICALS, INC. F/K/A BIOSTREAM, INC.
           a corporation incorporated under the laws of the State of
      Massachusetts, and having a place of business at 160 Second Street,
                        Cambridge, MA, (the "Licensee")

AND:

                       THE UNIVERSITY OF WESTERN ONTARIO,
               a corporation under the Universities Act (Ontario)
                               (the "University")

 WHEREAS:

A)    the University is the owner of certain Technology (as defined herein)
      relating to the University's Invention Numbers 01-003 and 02-018 known as:
      "Polymer Precursors of Radiolabeled Compounds and Methods of Making and
      Using the Same" and "Polymer-Supported Propenyl Mesylates as Precursors
      for the Radiolabelling of Amines, Sulfides and Ethers" respectively, and
      has the authority and capacity to grant licenses to the Technology;

B)    the University wishes to have the Technology developed and commercialized
      to benefit the public and is willing to grant a license to any underlying
      Patent Rights thereto; and

C)    the Licensee wishes to obtain from the University and the University has
      agreed to grant a license to the Licensee to commercially exploit the
      Technology on the terms set out.

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

ARTICLE 1 - DEFINITIONS

1.1   For purposes of this Agreement, the following words and phrases shall have
      the following meanings:

      (a)   "Business Day" means every day other than Saturday, Sunday, and
            statutory holidays in the Province of Ontario or the Commonwealth of
            Massachusetts;

                                                                    Page 1 of 27
<PAGE>

      (b)   "Confidential Information" means scientific, technical and/or
            business information (including written descriptions, drawings,
            samples, compositions, formulae, visual demonstrations, prototypes
            and other data) which is disclosed by one party (the "Discloser") to
            the other party (the "Recipient") and which is in each case marked
            or identified (either in writing or orally) as confidential at the
            time of disclosure.

      (c)   "Effective Date" means the date on which this Agreement shall come
            into effect, which shall be the 5th day of September, 2003;

      (d)   "Field of Use" means all uses of the Technology;

      (e)   "Net Revenue" means all revenues and receipts directly or indirectly
            receivable by the Licensee and, where sublicensing is permitted
            hereunder, its sub-licensees or payable to the Licensee and its
            sub-licensees, from third party use, sale, distribution, leasing or
            sublicensing of Licensed Products and/or the use of Licensed
            Processes, calculated on the basis of the Licensee's fiscal year, or
            part thereof, less the following amounts relating to such sales: (i)
            discounts allowed in amounts that are reasonable and customary in
            the trade; (ii) actual freight and insurance costs incurred in
            transporting Licensed Products to such purchasers; (iii) sales, use,
            value-added and other direct taxes incurred in respect of sale of
            Licensed Products; (iv) customs duties, surcharges and other
            governmental charges incurred in connection with the export or
            import of Licensed Products; and (v) amounts credited or allowed on
            returns. No deductions shall be made for commissions or fees paid to
            persons whether independent sales agents, or are employed by the
            Licensee or its sub-licensee, or for other similar costs.
            Notwithstanding anything in this Agreement to the contrary, revenues
            and receipts shall be considered directly or indirectly receivable
            by Licensee when the Licensee receives such amounts owed to it;
            provided, however, that the Licensee has exercised commercially
            reasonable efforts to collect all amounts owed to it by its
            sub-licensees or other third parties in connection with the licenses
            granted hereunder in a timely manner. Licensed Products shall be
            deemed to have been sold and included in the Net Revenue of the
            Licensee and sub-licensee when invoiced, or if not invoiced, when
            delivered or paid for, whichever is the first to occur. Under no
            circumstances shall Net Revenue include any grant money or other
            funding received by the Licensee as re-imbursement of expenses
            associated with the research and development of the Technology by
            the Licensee.

      (f)   "Licensee" is the party of the first part and includes any
            corporation which controls, is controlled by, or is under common
            control with the Licensee; for this purpose, "control" means the
            direct or indirect ownership of voting shares carrying more than 50%
            of the votes for the election of directors;

      (g)   "Licensee Improvement" means any technology, whether patentable or
            not, that is developed by or under the direction of the Licensee and
            whose use would infringe one or more claims or rights under the
            Patent Rights or whose development has relied upon the Technology;

                                                                    Page 2 of 27
<PAGE>

      (h)   "Licensed Process" means any process which relies in whole or in
            part upon the Technology or which is covered in whole or in part by
            an issued, unexpired claim or pending claim contained in the Patent
            Rights;

      (i)   "Licensed Product" means any product or part thereof which:

            (i)   relies in whole or in part, upon the Technology, or is
                  utilized to practise a Licensed Process; or

            (ii)  is produced or processed by using a Licensed Process; or

            (iii) is covered in whole or in part by an issued, unexpired claim
                  or a pending claim contained in the Patent Rights in the
                  country in which any such product or part thereof is made,
                  used or sold.

      (j)   "Materials" means any substance, product or compound (including all
            cell lines, vectors, plasmids, clones, micro organisms, anti-bodies,
            antigens, test plates, reagents, chemicals, compounds, physical
            samples, models and specimens) delivered by the University to the
            Licensee, and the Materials specifically described in Schedule "C",
            and all progeny, mutants and derivatives thereof supplied by the
            University;

      (k)   "Milestone Payments" has the meaning set forth in Section 5.2;

      (l)   "Patent Rights" means any of the following intellectual property of
            the University:

            (i)   patents and/or patent applications listed in Schedule "A";

            (ii)  patents issued from the applications listed in Schedule "A",
                  or from divisions or continuations of such applications, or
                  any re-issues of such patents; or

            (iii) such other statutory or common law protection as may be
                  available to the University in connection with such patents or
                  patent applications listed on Schedule A.

      (m)   "Royalty Due Date" means the date 30 days following the last day of
            March, June, September and December of each and every year during
            which this Agreement remains in full force and effect, commencing on
            January 30, 2004;

      (n)   "Territory" means worldwide;

      (o)   Technology" means any and all knowledge, know-how, information,
            software and/or techniques invented, developed or acquired or being
            invented, developed and/or acquired prior to or after the Effective
            Date by the University, and any Materials related thereto, all of
            which are related to the Patent Rights, University Improvements or
            Licensee Improvements as applicable, provided that for the purposes
            of determining University

                                                                    Page 3 of 27

<PAGE>

            ownership of Technology, Licensee Improvements developed solely by
            the Licensee shall be excluded.

      (p)   "University Improvement" means any technology, whether patentable or
            not, that is created by the University under the research program of
            Dr. Duncan Hunter or whose use would infringe one or more claims or
            rights under the Patent Rights; and

      (q)   "Trade-marks" means any mark, trademark, service mark, logo,
            insignia, seal, design or other symbol or device used by the
            University or Licensee and associated with or referring to either of
            the University or Licensee, as the case may be, or any of its
            facilities, property or products.

ARTICLE 2 - GRANT OF RIGHTS AND TERM

2.1   LICENSE. Subject to the terms and conditions of this Agreement, the
      University hereby grants to the Licensee the right and license, within the
      Field of Use and in the Territory, to use, modify, improve, sublicense or
      otherwise exploit, for commercial and non-commercial purposes, the
      Technology, the Patent Rights, and/or University Improvements as
      applicable, and, to make, have made, use, lease, sell, distribute and
      import Licensed Products and to use, modify, improve, sublicense and
      otherwise exploit, for commercial and non-commercial purposes, the
      Licensed Processes, until the end of the earlier of 20 years from the
      Effective Date of this Agreement or the term for which a patent or patents
      under the Patent Rights are granted, and in the latter instance, on a
      country by country basis, unless this Agreement is sooner terminated
      according to the terms hereof. Notwithstanding anything to the contrary,
      the license granted hereunder shall not be construed to confer any rights
      or benefits upon the Licensee by implication, or otherwise, as to any
      patents, technology or rights not specifically included in the Technology.

2.2   PERIOD OF EXCLUSIVITY. In order to establish a period of exclusivity for
      the Licensee, the University hereby agrees that it shall not grant any
      other license to make, have made, use, lease, sell and distribute the
      Technology, the Patent Rights, the University Improvements or the Licensed
      Products or to utilize Licensed Processes in the Territory for the Field
      of Use during the period of time commencing the Effective Date and
      terminating upon expiration of any patent issued on a country by country
      basis.

2.3   RIGHTS RETAINED BY UNIVERSITY. Nothing in this Agreement shall affect the
      University's right to use the Technology or to use and distribute the
      Materials to third parties for research, teaching and other non-commercial
      uses and the Licensee hereby grants back to the University rights to use
      the Patent Rights, whether for the University's own purposes or in
      conjunction with other similar research institutions, for research,
      teaching and other non-commercial applications, including technical
      services and industrially sponsored research. This grant to the University
      expressly excludes any rights to use the Patent Rights alone or in
      conjunction with others, for commercial purposes.

                                                                    Page 4 of 27

<PAGE>

2.4   OWNERSHIP, IMPROVEMENTS. The parties acknowledge that the University shall
      retain ownership of the Technology excluding all Licensee Improvements.
      The Licensee shall own all Licensee Improvements, provided that the
      Licensee hereby grants to the University a perpetual, non-exclusive
      royalty-free right to use all Licensee Improvements solely for research,
      teaching and other non-commercial uses in accordance with the rights
      granted under Section 2.3.

2.5   REPORT OF IMPROVEMENTS. From time to time and in any event at least
      annually:

      (a)   the Licensee shall disclose in writing to the University the details
            of all Licensee Improvements; and

      (b)   the University shall disclose in writing to the Licensee the details
            of all University Improvements, for the purposes of causing same to
            be part of the grant of rights in the Technology hereunder.

2.6   RESTRICTION ON DISCLOSURE; USE OF TRADE-MARKS. Neither party shall
      disclose any of the financial terms and conditions of this Agreement but
      shall be entitled to reveal the parties and the nature of the license
      granted. Neither Party shall use any of the other's Trade-marks or make
      reference to the other for any advertising or publicity purposes, without
      the prior written consent of that party. Notwithstanding the foregoing,
      the parties (and their representatives) may disclose to any person or
      entity the tax treatment and tax structure of the transactions
      contemplated by this Agreement and any materials (including opinions and
      other tax analyses) provided to them relating to the tax treatment and tax
      structure of the transactions contemplated herein.

ARTICLE 3 - SUBLICENSES

3.1   SUBLICENSES. The Licensee shall have the right to grant sublicenses of the
      rights, privileges and licenses granted hereunder within the Territory
      during the exclusive period of this Agreement in accordance with the
      provisions of Section 3.2. Upon any termination of this Agreement, and at
      the election of the University, any sub-licensees' rights shall also
      terminate.

3.2   COVENANTS OF SUB-LICENSEES.

      (a)   Licensee covenants and agrees that it shall cause any sublicense
            agreement entered into by it to contain, on the part of such
            sub-licensee, covenants in favour of the University with respect to
            the obligations set forth in Sections 3.1, 6.1 and Articles 10 and
            12 herein, and that to the extent there exists an inconsistency
            between the sublicense agreement and this Agreement, any such
            inconsistency or conflict will be resolved in favour of this
            Agreement. In granting any sublicense hereunder, the Licensee
            undertakes to observe and perform any obligations of the
            sub-licensee, to intent that none of the rights, entitlements or
            remedies of the University are impaired by the granting of such
            sublicense. The Licensee shall deliver to the University a true copy
            of such sublicense agreement upon execution.

                                                                    Page 5 of 27

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

      (b)   In addition, all sublicenses shall be subject to the following
            conditions:

            (i)   in no event will a sub-licensee be permitted to further
                  sublicense or to assign or transfer any rights which have been
                  granted to it by the Licensee (except to the extent that such
                  assignment is in connection with the sale of all or
                  substantially all of the assets or stock of such sub-licensee
                  or in connection with the merger or similar transaction
                  between such sub-licensee and a third party and University is
                  notified of such assignment); and

            (ii)  the Licensee shall not be entitled to receive from any
                  sub-licensee any consideration or matter of value in lieu of
                  cash payments not otherwise part of Net Revenue, in
                  consideration for any sublicense under this Agreement, without
                  the express prior written consent of the University.

ARTICLE 4 - LICENSEE'S PERFORMANCE OBLIGATIONS

4.1   LICENSEE'S COMMERCIALIZATION DUE DILIGENCE; MILESTONE OBLIGATIONS. The
      Licensee shall use commercially reasonable efforts to bring one or more
      Licensed Products or Licensed Processes to market through a thorough,
      concerted and diligent program for exploitation of the Technology and to
      continue active, diligent marketing efforts for one or more Licensed
      Products or Licensed Processes during the entire period that this
      Agreement is in effect, in order to meet the milestones set out on
      Schedule "D" from time to time.

4.2   ACKNOWLEDGEMENT OF EXPERTISE BY LICENSEE. The Licensee covenants and
      agrees that it has the expertise necessary to handle the Technology,
      Materials, the Licensed Products and the Licensed Processes with care and
      without danger to the Licensee, its employees, agents, or the public, and
      to observe and perform the covenants and obligations set out herein.

4.3   COMPLIANCE BY LICENSEE WITH LAWS. The Licensee covenants and agrees that
      it will comply with all laws, regulations and ordinances, whether federal,
      provincial, state, municipal or otherwise, as appropriate, with respect to
      the Materials, the Technology, the Licensed Products, the Licensed
      Processes and this Agreement.

4.4   FAILURE TO MEET PERFORMANCE REQUIREMENTS. In the event the Licensee fails
      to meet any of the milestones or performance criteria set forth in
      Schedule D, or observe and perform the obligations set forth under any of
      Sections 4.1 or 4.3, such shall constitute a default under this Agreement
      pursuant to Section 13.2 hereof.

4.5   NO PRIOR SECURITY INTERESTS. The Licensee covenants that it will not grant
      a security interest in or to the Technology.

ARTICLE 5 - FEES, ROYALTIES AND PAYMENTS

5.1   INITIAL LICENSE FEE. The Licensee shall pay to the University, an initial
      license fee with respect to the issuance of the license, of Canadian
      $[******]. The said sum shall

                                                                    Page 6 of 27

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

      be deemed earned and due immediately upon the Effective Date, and shall
      not be refundable to the Licensee in whole or in part under any
      circumstances.

5.2   ROYALTY FOR DISCOVERY, RESEARCH AND DEVELOPMENT USES.

      (a)   The Licensee shall pay to the University, in advance, an annual fee
            of Canadian $[******] ([***************] dollars) per year for seven
            years commencing on the anniversary of the Effective Date beginning
            one year after the Effective Date, and thereafter on each successive
            anniversary of the Effective Date. The parties are agreed that no
            payment shall be required for that period from the Effective Date to
            the first anniversary thereof; and

      (b)   As further consideration for the value of the Technology for
            application as a discovery tool and use as a research and
            development platform by the Licensee ("Research Uses"):

            (i)   Licensee shall pay to the University a royalty of [********]
                  percent ([***]%) of the Net Revenue receivable by the Licensee
                  that is attributable to products sold, made, or distributed
                  directly by Licensee to third parties where such products rely
                  upon such Research Uses and which no longer are relying upon
                  the Technology directly;

            (ii)  Where Licensee provides Research Uses to third parties on a
                  fee-for-service basis, Licensee shall pay a royalty to the
                  University of [**************] percent ([***]%) of the Net
                  Revenue receivable by the Licensee in connection with such
                  fee-for-service work which relies upon such Research Uses; and

            (iii) Where the Licensee has previously provided to third parties
                  Research Uses on a fee-for-service basis and such third party
                  thereafter sells, makes or distributes a product that relies
                  on such Research Uses, the Licensee shall pay to the
                  University a royalty of [********************] ([***]%) of the
                  Net Revenue receivable by the Licensee as a royalty payment
                  from such third party in connection with products which rely
                  upon such Research Uses and which do not require a sublicense
                  of the Technology.

5.3   MILESTONE PAYMENTS. The Licensee shall pay to the University milestone
      product development payments with respect to achievement of each of the
      enumerated events arising from the development of each of the Licensed
      Products and/or Licensed Processes, all as set forth in the table below,
      with each payment becoming due and payable on the first date of completion
      for each element of every Class ("Class" means any of Cardiology,
      Oncology, Central Nervous System, Infection, and Vascular Disease) of
      Licensed Product and/or Licensed Process of such milestone, regardless of
      the country in which achievement of such milestone first occurs:

<TABLE>
<CAPTION>
                Milestone                   Payment
                ---------                   -------
<S>                                         <C>
Initiation of Phase I Clinical Trial        Canadian $[******]
Completion of Phase II Clinical Trial       Canadian $[******]
Completion of Phase III Clinical Trial      Canadian $[******]
Grant of Regulatory Approval                Canadian $[******]
</TABLE>

                                                                    Page 7 of 27

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

      For certainty with respect to milestone product development payments,
      there are four (4) milestones anticipated for each of the five (5)
      Classes.

5.4   ANNUAL ROYALTIES AND PAYMENTS. In consideration of the license granted
      hereunder, the Licensee shall pay to the University subject to Section 5.6
      below:

      (a)   a royalty of [**************] percent ([***]%) of Net Revenue; For
            greater clarification, on sales between Licensee, and/or its
            Affiliates, sub-licensees or agents for resale purposes, the royalty
            shall be paid only on the resale value by such Affiliate,
            sublicense, or agent. Such royalties shall become due and payable on
            each Royalty Due Date, and shall be calculated with respect to Net
            Revenue for the calendar quarter immediately preceding the month in
            which the applicable Royalty Due Date occurs; and

      (b)   in addition to such annual royalties in subsection (a) hereof, [****
            ***********] percent ([***]%) of:

            (i)   initial up-front fees, or other consideration (including
                  equity or other participation), or in-kind or non-monetary
                  contribution, if any, receivable by Licensee upon its
                  execution of or pursuant to the terms of any sub-license
                  agreement related to the use of the Technology, Materials,
                  Licensed Products or Licensed Processes; and

            (ii)  any payments or other consideration (including equity or other
                  participation), or in-kind or non-monetary contribution
                  receivable by Licensee upon the successful achievement of
                  milestones set forth in, and pursuant to the terms of, any
                  sublicense agreement related to the use of the Technology,
                  Materials, Licensed Products or Licensed Processes. The
                  Licensee shall be entitled to deduct from any of the foregoing
                  consideration received that portion which is a reimbursement
                  of its direct, out-of-pocket costs for research projects
                  funded on behalf of the sub-licensee relating to the
                  Licensee's Improvements after the effective date of the
                  sub-license agreement.

      Any payments under this subsection (b) shall be following receipt by the
      Licensee of the fees, consideration, or in-kind or non-monetary
      contribution, provided Licensee has exercised commercially reasonable
      efforts to collect such amount or entitlement owing.

      Notwithstanding anything herein to the contrary, the University
      acknowledges and agrees, that it is not entitled to any compensation,
      royalty or payment whatsoever in connection with any payments or other
      consideration (including equity or other participation), with respect to
      third party equity investments in the Licensee which are not directly
      attributable to the sub-licensing of any of the Technology, Materials,
      Licensed Products or Licensed Processes.

                                                                    Page 8 of 27

<PAGE>

5.5   CURRENCY AND PLACE OF PAYMENTS. All payments to be made by the Licensee to
      the University hereunder shall be made in Canadian dollars at London,
      Ontario without deduction of taxes or other fees of any other kind
      whatsoever, which may be imposed by any government, and which taxes or
      fees shall be paid by the Licensee. Where any payment or amount is
      denominated in a currency other than Canadian dollars, it shall be
      converted to the equivalent in Canadian dollars at the rate of exchange
      set by the Bank of Montreal in Toronto, Canada for converting the currency
      of such amount into Canadian dollars, on the last Business Day of the
      reporting period to which such payment relates.

5.6   NO DUPLICATION OF PAYMENTS. For clarification, the royalties owed pursuant
      to clauses (b)(i), or (b)(iii) of Section 5.2 and clause (a) of Section
      5.4 are to be independent of each other.

ARTICLE 6 - RECORDS AND REPORTING

6.1   ACCOUNTING RECORDS. The Licensee shall maintain at its principal place of
      business, separate accounts and records of transactions arising pursuant
      to this Agreement, such accounts and records to be in sufficient detail to
      enable proper returns to be made under this Agreement, and the Licensee
      shall include a similar requirement of its sub-licensees in any sublicense
      agreement.

6.2   REPORTS. The Licensee shall deliver to the University by no later than
      each Royalty Due Date, together with the royalty payment required, a
      report (the "Accounting") setting out particulars of the sale,
      distribution, leasing or sublicensing of the Licensed Products and/or
      Licensed Processes as shall be requisite for the payment of royalties,
      including the following:

      (a)   the number of Licensed Products sold by Licensee and all
            sub-licensees in each country during the applicable royalty period;

      (b)   the gross revenue for Licensed Products charged by Licensee and all
            sub-licensees during the applicable royalty period;

      (c)   an accounting for all Licensed Processes used, sold, leased, or, if
            applicable, licensed by the Licensee and all sub-licensees;

      (d)   a calculation of Net Revenue in each country including a listing of
            applicable deductions and evidence of the Licensee's payment of
            withholding taxes;

      (e)   a listing of additional payments or consideration from sub-licensees
            under Section 5.4(b); and

      (f)   total royalties payable on Net Revenue in Canadian dollars, together
            with the exchange rates used for any currency conversion in
            accordance with Section 5.5.

      The Licensee shall also provide to the University periodic reports at all
      significant stages and milestones in the development, manufacture and
      sale, distribution,

                                                                    Page 9 of 27

<PAGE>

      leasing or sublicensing of the Licensed Products and/or Licensed
      Processes, including but not limited to, the milestones described in
      Sections 4.1, 4.4 and 5.2, by no later than thirty (30) days following the
      completion of such stage or milestone; such reports shall be in sufficient
      detail to enable the University to assess the status of all required
      regulatory approvals relating to the Licensed Products, and whether the
      Licensee is meeting its obligations under Sections 4.1, 4.4 and 5.2 during
      the term of this Agreement.

6.3   GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP). The calculation of
      royalties shall be made in accordance with generally accepted accounting
      principles from time to time approved by the Federal Bureau of Accounting
      Standards applied on a consistent basis with the Licensee's past
      practices. Licensee certifies that its accounting practices comply with
      the Federal Bureau of Accounting Standards.

6.4   RETENTION OF ACCOUNTS AND RECORDS. The Licensee shall retain the accounts
      and records referred to in Section 6.1 for at least three (3) years after
      the date upon which they were made.

6.5   AUDIT RIGHT. During the term of this Agreement and for one (1) year
      thereafter, the University may at its cost and expense audit or cause to
      be audited, no more than once in any twelve month period, the applicable
      books, records of other relevant materials of the Licensee referable
      hereto, to verify any report rendered hereunder. The audit must be on
      reasonable advance, written notice, and be conducted during normal
      business hours of the Licensee. The Licensee shall furnish such reasonable
      evidence as such representative will deem necessary to verify the
      Accounting and may permit such representative to make copies of or
      extracts from such accounts, records and agreements at the University's
      expense. If the audit reveals an underpayment by the Licensee of three (3)
      percent or more of royalties payable in any fiscal year of the Licensee,
      the Licensee shall pay to the University such deficiency within fifteen
      (15) days of the determination thereof, together with interest thereon
      from the date such amount was due to the date of payment, and shall
      further reimburse the University for its full and reasonable out-of-pocket
      costs of the audit. In any other instance of overpayment or underpayment
      by the Licensee, the appropriate payment of such deficiency or refund
      shall be made within fifteen (15) days following the determination
      thereof, together with interest thereon and the University shall bear its
      own costs of the audit.

6.6   POWER OF ENTRY. The Licensee shall permit any duly authorized
      representative of the University during normal business hours and at the
      University's sole risk and expense to enter upon and into any premises of
      the Licensee for the purpose of inspecting the Products and the manner of
      their manufacture, and the use of the Materials, the Technology and the
      Licensed Processes; and generally ascertaining whether or not the
      provisions of this Agreement have been and, are being complied with by the
      Licensee.

6.7   SURVIVAL OF THIS ARTICLE AFTER TERMINATION. Notwithstanding the
      termination of this Agreement, this Article 6 shall remain in full force
      and effect until:

                                                                   Page 10 of 27

<PAGE>

      (a)   all payments and royalties required to be made by the Licensee to
            the University under this Agreement have been made by the Licensee
            to the University; and

      (b)   any other claims of any nature or kind whatsoever of the University
            against the Licensee arising out of the termination have been
            settled.

ARTICLE 7 - REPRESENTATIONS AND WARRANTIES

7.1   Each of the University and the Licensee warrants and represents to the
      other, and acknowledges that the other has relied upon the completeness
      and accuracy of such representations and warranties in entering into this
      Agreement, namely:

      i)    it has the corporate capacity to enter into this Agreement and to
            perform each of its obligations hereunder; and

      ii)   it has duly authorized, executed and delivered the Agreement, and
            the Agreement constitutes a legal, valid and binding obligation of
            it, enforceable against it in accordance with its terms, except only
            as such enforcement may be limited by applicable bankruptcy,
            insolvency and other laws of general application affecting the
            enforcement of creditors' rights and subject to general equitable
            principles.

7.2   The University warrants and represents to the Licensee, and acknowledges
      that the Licensee has relied upon the completeness and accuracy of such
      representation and warranties in entering into this Agreement, namely:

      i)    as at the date hereof, it has all right, title and interest in and
            to the Technology and the Patent Rights, free and clear of any
            security interests, liens or other similar encumbrances and
            possesses all rights necessary to grant the license set forth
            herein;

      ii)   as at the date hereof, there is no litigation or other claim pending
            or threatened involving the Technology or the Patent Rights;

      iii)  as of the date hereof, there is no claim pending or, to the
            University's knowledge, threatened by a third party alleging that
            the Technology or Patent Rights infringes the intellectual property
            rights of such third party and the University has no reason to
            believe that there is a basis for such claim; and

      iv)   it has not entered into any options, licenses or other agreements
            with third parties relating to the Technology or Patent Rights which
            would conflict with the rights and licenses granted to the Licensee
            herein.

ARTICLE 8 - PATENT PROSECUTION

8.1   PATENT RIGHTS. The Licensee hereby recognizes and acknowledges the
      ownership rights of the University to the Technology, as applicable, the
      validity of the Patent Rights licensed hereunder, and agrees not to
      contest the ownership of the Technology or the validity of the Patent
      Rights, either directly or indirectly by assisting other parties, nor to
      initiate or participate with an interference application in connection
      with Patent Rights.

                                                                   Page 11 of 27

<PAGE>

8.2   PATENT PROSECUTION AND PATENT COSTS. The Licensee shall pay for all
      reasonable fees and costs relating to the filing, prosecution and
      maintenance of the Patent Rights incurred after the Effective Date and
      during the term of the Agreement on behalf of the University: provided,
      however, that, subject to Section 8.4 below, the Licensee shall control
      the process of, and select counsel of its choosing for, such filing,
      prosecution and maintenance. The Licensee shall have primary
      responsibility for the filing, prosecution and maintenance of patents
      and/or patent applications worldwide for those inventions within the
      Patent Rights, at the Licensee's expense, provided that the Licensee shall
      consult with the University as to the prosecution and maintenance of all
      such patent applications within the Patent Rights prior to any substantive
      deadline or action, and shall not substantially limit the scope of patent
      protection without the University's consent, which consent shall not be
      unreasonably withheld or delayed. The Licensee shall furnish the
      University with copies of all relevant documents upon filing the same with
      the patent office of any country. Subject to Section 8.4 below, the
      University shall not take any action with respect to such patents or
      patent applications without the Licensee's prior written consent.

8.3   COPIES OF PATENT RELATED MATERIALS. The University shall provide the
      Licensee with copies of the patent applications and all official
      correspondence with the respective patent and trademarks office(s)
      relating to the Patent Rights which exist as of the Effective Date. In
      addition, the Licensee shall provide to the University copies of all
      patent applications, maintenance therefor and all official correspondence
      with the respective Patent and Trademark Office relating to the Patent
      Rights from and after the Effective Date, in accordance with its
      obligations under Section 8.2 hereof, in order that the University is
      advised sufficiently in advance of any deadlines for patent prosecution or
      maintenance in connection with the Patent Rights.

8.4   UNIVERSITY PATENT PROSECUTION. In the event that the University has
      notified the Licensee in writing that it desires to file for patent
      protection in a country or countries and the Licensee declines to do so in
      writing, the university shall notify the Licensee in writing of its
      intention to file for such patent protection in such country or countries
      (the "Patent Notice", which Patent Notice must specifically state the
      country and scope of the patent protection desired) and, if the Licensee
      has not responded within ten (10) business days after its receipt of the
      Patent Notice that the Licensee will seek such patent protection pursuant
      to this Section 8, the University may file for, prosecute and maintain
      such patent (as set forth in the Patent Notice) with counsel of its
      choosing. The University will provide copies of all documents related
      thereto to the Licensee. Notwithstanding the foregoing, the University
      must have a good faith business reason for seeking such patent protection
      pursuant to this Section 8.4 prior to delivering the Patent Notice to the
      Licensee.

8.5   UNIVERSITY RIGHTS RE PROSECUTION. In the event that the Licensee fails to
      prosecute any application or maintain the existence of Patent Rights for
      which the Licensee is responsible hereunder, the University shall be
      entitled to assume the obligations of the Licensee, as contemplated by
      Section 8.2 hereof, and may elect that the Licensee's failure to
      diligently prosecute and/or maintain such Patent Rights is a default of
      the Licensee for which termination rights by the University are
      exercisable in accordance with Article 13. Notwithstanding anything herein
      to the contrary, the University's termination rights set forth in this
      Section 8.5 shall not be applicable with

                                                                   Page 12 of 27

<PAGE>

      respect to any patents which the Licensee has declined to pursue pursuant
      to Section 8.4 or for which the patent process has not been initiated by
      either party in such country or countries.

ARTICLE 9 - INFRINGEMENT

9.1   Enforcement of Rights Against Third Parties.

      (a)   In the event of an alleged infringement of the Patent Rights or an
            unauthorized use of the Technology by a third party in the Territory
            for the Field of Use after the Effective Date, the Licensee shall
            have the obligation to prosecute, at its own expense, any such
            alleged infringement, upon receipt of prior written notice of such
            claim from the University. The University agrees to co-operate to
            the extent of executing all necessary documents to vest in the
            Licensee the right to institute any such suits, and the right to use
            the University's name as a party plaintiff. No settlement, consent,
            judgment or other voluntary final disposition of the suit may be
            entered into without the consent of the University, which consent
            shall not unreasonably be withheld or delayed. At any time during
            the prosecution of the action by the Licensee, the University may
            participate, at its own expense, in the prosecution of such action.
            The Licensee shall indemnify the University against any order for
            costs that may be made against the University in such proceedings.

      (b)   In the event that the Licensee undertakes assertion of rights with
            respect to the Technology or the enforcement of the Patent Rights by
            litigation, the Licensee may withhold up to fifty percent (50%) of
            the payments otherwise thereafter due to the University under
            Article 5 hereunder and apply such withheld amounts toward
            reimbursement of up to fifty percent (50%) of Licensee's expenses,
            including reasonable attorneys' fees, in connection therewith. Any
            recovery of damages by Licensee for each such suit shall be issued
            in the name of the Licensee and the University jointly, and shall be
            applied first in satisfaction of all of any unreimbursed expenses
            and legal fees of Licensee relating to such suit, and next applied
            for all payments to the University under Article 5 past due or
            withheld pursuant to this Article 9. The balance remaining
            thereafter from any such recovery shall be divided equally between
            the Licensee and the University. The Licensee shall provide to the
            University an accounting for all costs, expenses and disbursements
            incurred with respect to the defence or enforcement of the action.
            In the event that the enforcement of the Patent Rights by the
            Licensee is not successful, or the Licensee does not recover 50% of
            its legal fees and expenses from the withheld royalty amounts, the
            Licensee surrenders and foregoes any further entitlement to offset
            any amounts against the royalty payments otherwise payable under
            Article 5.

      (c)   In the event that the enforcement of the Patent Rights by the
            Licensee or the University is not successful, the Licensee shall
            have the right to terminate this Agreement upon sixty (60) days
            written notice to the University, provided that the obligations of
            the Licensee for payment under Section 9.1 (b) have been fulfilled.
            Alternatively, the Licensee and the University may enter

                                                                   Page 13 of 27

<PAGE>

            renegotiations of a new royalty rate, having regard to the nature
            and extent of the Technology and/or Patent Rights as are available
            to be licensed to the Licensee, pursuant to a revised agreement.

      (d)   Notwithstanding the foregoing, the University shall have the right
            to enter into a contract with the successful third party with
            respect to licensing of rights from it in order to permit the
            continued use of the License hereunder for the Technology, and in
            such case, the terms of this Agreement shall continue in full force
            and effect.

9.2   CO-OPERATION BETWEEN THE PARTIES. In any infringement suit to enforce the
      Patent Rights pursuant to this Agreement, the University shall, at the
      request and expense of the Licensee, cooperate in all respects and, to the
      extent possible, have its employees testify when requested and make
      available relevant records, papers, information, samples, specimens and
      the like.

9.3   RIGHT TO SUBLICENSE ALLEGED INFRINGER. The Licensee shall have the right,
      in accordance with the terms and conditions herein, including without
      limitation Article 5, to sublicense any alleged infringer in the Territory
      for the Field of Use for future use of the Technology or the Patent
      Rights, as the case may be.

9.4   INFRINGEMENT ACTIONS BY THIRD PARTIES. In the event that a complaint
      alleging infringement or violation of any patent or other proprietary
      rights is made against the Licensee with respect to the use of the
      Technology or the Patent Rights after the Effective Date, the following
      procedure shall be adopted:

      (a)   the Licensee shall promptly notify the University upon receipt of
            any such complaint and shall keep the University fully informed of
            the actions and positions taken by the complainant and taken or
            proposed to be taken by the Licensee;

      (b)   subject to this section, all costs and expenses incurred by the
            Licensee in investigating, resisting, litigating and settling such a
            complaint, including the payment of any award of damages and/or
            costs to any third party, shall be borne by the Licensee;

      (c)   no settlement or compromise of the complaint shall be taken without
            full consultation with and approval by the University, which
            approval shall not be unreasonably withheld or delayed;

      (d)   the University may elect to participate formally in any litigation
            involving the complaint, to the extent that the court may permit,
            but any additional expenses generated by such formal participation
            shall be borne entirely by the University (subject to the
            possibility of recovery of some or all of such additional expenses
            from the complainant); and

      (e)   if the complainant is willing to accept an offer of settlement and
            one of the parties to this Agreement is willing to make or accept
            such offer and the other is not, then the unwilling party shall
            conduct all further proceedings at its own expense, and shall be
            responsible for the full amount of any damages, costs, accounting of

                                                                   Page 14 of 27

<PAGE>

            profits and settlement costs in excess of those provided in such
            offer, but shall be entitled to retain unto itself the benefit of
            any litigated or settled result entailing a lower payment of costs,
            damages, accounting of profits and settlement costs than that
            provided in such offer.

9.5   UNIVERSITY INDEMNIFICATION. Notwithstanding anything herein to the
      contrary, the University shall indemnify and hold harmless the Licensee
      for any breach of representations and warranties set forth in Article 7
      herein. In the event of a claim for indemnification by the Licensee
      pursuant to this Section 9.5, the Licensee shall provide written notice of
      such claim to the University and the University, in the case such claim
      involves a third party, shall assume the defense and/or settlement of such
      claim at its sole cost and expense; provided, however, that the University
      may not settle or otherwise compromise such claim without the prior
      written consent of the Licensee, which consent shall not be unreasonably
      withheld or delayed and which consent shall not be required if such
      settlement or compromise includes a full release of the Licensee and the
      ability of the Licensee to continue to use and exploit the license and
      other rights granted herein.

ARTICLE 10 - CONFIDENTIALITY

10.1  MUTUAL OBLIGATION OF CONFIDENTIALITY. Each party shall treat all
      Confidential Information in respect of which it is the Recipient as
      confidential and shall not disclose any Confidential Information to any
      third party or use the Confidential Information for any purpose other than
      for the purposes of fulfilling its obligations under this Agreement. The
      Recipient shall use at least the same standard of care in protecting the
      Confidential Information as it uses in protecting its own information of a
      similar nature but, in any event, no less than a reasonable standard of
      care. Without limiting the generality of the foregoing, the Licensee shall
      not, both during the term of this Agreement and at all times thereafter,
      disclose any of the University's Confidential Information to any person
      other than a prospective permitted sublicensee or an employee of or
      consultant to the Licensee who shall have entered into a confidential
      disclosure agreement in form and substance satisfactory to the University.
      Any Confidential Information will be disclosed within the Recipient only
      on a "need to know" basis.

10.2  EXCLUSIONS FROM CONFIDENTIALITY. Notwithstanding Section 10.1, the
      obligations regarding confidentiality shall not apply to information
      which:

      (a)   was in Recipient's possession before receipt from the Disclosing
            Party, as established by documentary evidence; or

      (b)   is or becomes a matter of public knowledge without breach of this
            Agreement by Recipient; or

      (c)   is received by Recipient from a third party which had no duty of
            confidentiality with respect to it; or

      (d)   is independently developed by the Recipient as established by
            documentary evidence; or

                                                                   Page 15 of 27

<PAGE>

      (e)   is made subject to an order by judicial or administrative process
            requiring Recipient to disclose any or all of the information,
            provided that the Recipient shall use reasonable efforts in the
            circumstances to promptly notify the Disclosing Party of such
            requirement to enable the Disclosing Party to oppose such process,
            before disclosure occurs; or

      (f)   is disclosed by Recipient with the Disclosing Party's prior written
            approval.

10.3  INJUNCTION. The parties acknowledge that if a party breaches the
      provisions of this Article 10, there may not be an adequate remedy at law
      through damages. Accordingly, the parties agree that a non-defaulting
      party shall have the right to seek and obtain temporary and permanent
      injunctive relief to restrain a violation of this Article 10. The parties
      acknowledge that the provisions herein are reasonable, and are fully
      required to protect the legitimate interests of the affected party.

ARTICLE 11 - DISCLAIMER OF WARRANTIES BY UNIVERSITY AND LIMITATION OF LIABILITY

11.1  DISCLAIMER OF WARRANTIES BY THE UNIVERSITY. Except as expressly set forth
      in this Agreement, the University, its trustees, officers, employees,
      students and agents make no representations or warranties of any kind,
      either express or implied, and there are no conditions, either express or
      implied. Without limiting the generality of the foregoing, there are no
      express or implied warranties of merchantability or fitness for a
      particular purpose, or the absence of latent or other defects. The
      Licensee acknowledges that it has been advised by the University to
      undertake its own due diligence, including independent legal advice, with
      respect to the Technology and the terms of this Agreement.

11.2  LIMITATION OF THE UNIVERSITY'S LIABILITY. Except for claims for
      indemnification pursuant to Section 9.5 herein, the aggregate damages for
      which the University shall be liable shall not exceed the amount of
      royalties paid by the Licensee to the University for the year in which the
      cause of action giving rise to the damages occurred. In no event shall the
      University, its trustees, officers, students, employees or agents be
      liable for any indirect, consequential, incidental, or special damages of
      any kind whatsoever, including, but not limited to, economic damage or
      injury to property or lost profits, even if the University has been
      advised of or knows of the possibility of such damages.

11.3  LIMITATION OF THE LICENSEE'S LIABILITY. In no event shall the Licensee,
      its officers, directors, consultants, employees or agents be liable for
      any indirect, consequential, incidental, or special damages of any kind
      whatsoever, including but not limited to, economic damage or injury to
      property or lost profits, even if the Licensee has been advised of or
      knows of the possibility of such damages.

11.4  ADDITIONAL DISCLAIMERS. Nothing in this Agreement shall be construed as:

                                                                   Page 16 of 27

<PAGE>

      (a)   an obligation by the University to bring or prosecute actions or
            suit against third parties for infringement of copyrights,
            trade-marks, registered design or other intellectual property or
            contractual rights, or

      (b)   the conferring by either party of any right to use in advertising,
            publicity or otherwise the Trade-marks or the name of the other
            party.

ARTICLE 12 - LICENSEE INDEMNITY AND INSURANCE

12.1  LICENSEE'S INDEMNITY. The Licensee shall at all times during the term of
      this Agreement and thereafter, indemnify, defend and hold harmless the
      University, its trustees, directors, officers, employees, students and
      agents, against all claims, proceedings, demands and liabilities of any
      kind whatsoever (including but not limited to reasonable legal fees and
      disbursements) incurred in connection with the Licensee's use of the
      Technology or the Materials, or from the Licensee's production,
      manufacture, sale, use, lease, consumption or advertisement of the
      Licensed Product(s) and/or Licensed Process(es), or arising from any right
      or obligation of the Licensee hereunder, excepting only claims that the
      Patent Rights infringe intellectual property rights of third parties.

12.2  INSURANCE REQUIRED FOR LICENSEE. Prior to the first sale of a Licensed
      Product or use of a Licensed Process, the Licensee will give notice to the
      University of the terms and amount of the comprehensive public liability
      and product liability insurance which it has placed in respect of the
      same, together with a certificate therefor. Such insurance shall be no
      less than the insurance which a reasonable and prudent corporation
      carrying on a similar business would acquire. This insurance shall be
      placed with a reputable and financially secure insurance carrier, shall
      include the University, as an additional insured, shall contain a waiver
      of subrogation against the University, and shall provide that the policy
      shall not be cancelled or materially amended except upon at least thirty
      (30) days' written notice to the University. The Licensee covenants not to
      sell any Licensed Product nor use any Licensed Process before such
      insurance is effective. The Licensee shall require that each sub-licensee
      under this Agreement shall procure and maintain equivalent insurance
      coverages.

12.3  INSURANCE NOT TO AFFECT INDEMNITIES. The existence of any insurance
      policies will not relieve the Licensee from its obligations under the
      indemnification provisions contained in this Agreement.

ARTICLE 13 - TERMINATION

13.1  TERMINATION BY THE UNIVERSITY. The University may, at its option and in
      its sole discretion, terminate this Agreement immediately on the happening
      of any one or more of the following events by delivering notice in writing
      to that effect to the Licensee:

      (a)   if the Licensee is more than thirty (30) days in arrears of fees,
            royalties or payments due under this Agreement, which is not cured
            within ten (10) business days after written notice thereof;

                                                                   Page 17 of 27
<PAGE>

      (b)   if the Licensee fails to observe or perform any other obligations
            required hereunder, including the failure to meet milestones as
            provided under Section 4.4, and such failure continues for a period
            in excess of thirty (30) days following written notice;

      (c)   if the Licensee grants a security interest in any of the rights
            under or in this Agreement in priority to any interest claimed by
            the University;

      (d)   if the Licensee seeks creditor protection; or if any execution,
            sequestration, or any another process of any court becomes
            enforceable against the Licensee; or if any such process is levied
            on the rights under this Agreement or upon any of the monies due to
            the University and is not released or satisfied by the Licensee
            within sixty (60) days thereafter;

      (e)   if any resolution is passed or order made or other steps taken for
            the winding up, liquidation or other termination of the existence of
            the Licensee, or if the Licensee ceases or threatens to cease to
            carry on its business.

13.2  TERMINATION BY EITHER PARTY. In addition to Section 13.1, if either party
      shall be in default under or shall fail to comply with the terms of this
      Agreement and if such default is not cured within thirty (30) days after
      written notice of such default, or such default is not cured within such
      further reasonable period of time as may be necessary, provided that the
      defaulting party is diligently seeking to remedy such default, then the
      non-defaulting party shall have the right to terminate this Agreement
      immediately by giving written notice to that effect to the party in
      default

13.3  RIGHTS UPON TERMINATION. If this Agreement is terminated pursuant to
      Section 13.1 or 13.2 hereof;

      (a)   all Confidential Information of the University and all remaining
            Materials shall be returned to the University;

      (b)   all Confidential Information of the Licensee shall be returned to
            the Licensee;

      (c)   all rights to the Technology, other than Licensee Improvements, and
            including, without limitation any rights to Patent Rights, Materials
            or use of Licensed Products or Licensed Processes and any other
            rights granted hereunder shall revert to the University; and

      (d)   The Licensee and any sub-licensee thereof may sell all Licensed
            Products remaining in inventory or stock on the effective date of
            the termination of this Agreement (the "Effective Date of
            Termination") and may complete any Licensed Products in the process
            of manufacture on the Effective Date of Termination, provided that
            the Licensee shall otherwise cease to use the Licensed Processes or
            to manufacture the Licensed Products or to practise the Technology
            in any manner whatsoever. The Licensee shall then deliver or cause
            to be delivered to the University a complete final accounting of all
            Net Revenue and of all other amounts payable to the Licensee in
            respect of the sublicensing of the Technology and/or the sale or
            distribution of Licensed

                                                                   Page 18 of 27
<PAGE>
            Products and/or Licensed Processes, and shall make payments to the
            University required by Article 5 hereof, all within ninety (90) days
            following the Effective Date of Termination.

13.4  PRESERVATION OF ALL REMEDIES AND RIGHTS. Upon any termination of this
      Agreement, the non-defaulting party shall have the right to enforce one or
      more remedies successively or concurrently in accordance with applicable
      law and retains all rights and remedies against the defaulting party. The
      University may proceed to enforce payment of all debts owed to the
      University and to exercise any or all of the rights and remedies contained
      herein or otherwise available to the University by law or in equity.

13.5  NON-WAIVER. No condoning, excusing or overlooking by any party of any
      default, breach or non-observance by any other party at any time or times
      in respect of any covenants, provisos, or conditions of this Agreement
      shall operate as a waiver of such party's rights under this Agreement in
      respect of any continuing or subsequent default, breach or non-observance,
      so as to defeat in any way the rights of such party in respect of any such
      continuing or subsequent default or breach and no waiver shall be inferred
      from or implied by anything done or omitted by such party, save only an
      express waiver in writing.

      No exercise of a specific right or remedy by any party precludes it from
      or prejudices it in exercising another right or pursuing another remedy or
      maintaining an action to which it may otherwise be entitled either at law
      or in equity.

ARTICLE 14 - GENERAL

14.1  RELATIONSHIP. Nothing contained herein shall be deemed or construed to
      create between the parties hereto a partnership, joint venture or
      employment relationship. No party shall have the authority to act on
      behalf of the other party, or to commit the other party in any manner or
      cause whatsoever or to use the other party's name in any way not
      specifically authorized by this Agreement. Neither party shall be liable
      for any act, omission, representation, obligation or debt of the other
      party, even if informed of such act, omission, representation, obligation
      or debt.

14.2  GOVERNING LAW. This Agreement shall be governed by and construed and
      applied in accordance with the laws of the Province of Ontario and the
      laws of Canada applicable in such Province, except that questions
      regarding the construction and effect of any patent shall be determined by
      the laws of the country in which the patent was granted.

14.3  DISPUTE RESOLUTION. In the event of a dispute between the parties arising
      out of or in connection with this Agreement or regarding the
      interpretation of the provisions hereof other than in connection with
      whether an event of default has occurred, the procedure set forth in
      Schedule "B" shall apply.

14.4  ENUREMENT, SURVIVAL OF COVENANTS. Subject to the limitations hereinbefore
      expressed, this Agreement shall enure to the benefit of and be binding
      upon the parties, and their respective successors and permitted assigns.
      The terms and

                                                                   Page 19 of 27
<PAGE>

      provisions, covenants and conditions contained in this Agreement which by
      the terms hereof require their performance by the parties hereto after the
      expiration or termination of this Agreement shall be and remain in force
      notwithstanding such expiration or other termination of this Agreement for
      any reason whatsoever.

14.5  NO ASSIGNMENT. Neither the Licensee nor the University shall be entitled
      to assign, transfer, mortgage, charge or otherwise dispose of this
      Agreement or any interest therein, or of any of the rights, duties or
      obligations granted hereunder (any of the foregoing being an
      "Assignment"), without the express written consent of the other, such
      consent not to be unreasonably withheld or delayed, and any attempt to
      effect such Assignment shall cause such Assignment to be void. Assignment
      shall not include any assignment by operation of law, or any change in
      shareholder control of the Licensee, if a corporation, it being agreed
      that the Licensee may assign the Agreement, and its rights hereunder,
      without the University's prior consent upon the sale of all or
      substantially all of the Licensee's stock or assets to a third party or
      upon the consummation of a merger or similar transaction by the Licensee
      with a third party. Within thirty (30) days, Licensee will provide written
      notice of such assignment.

14.6  ENTIRE AGREEMENT; SEVERABILITY. This Agreement sets forth the entire
      understanding between the parties and no modifications hereof shall be
      binding unless set forth in a written agreement or other document executed
      by the parties hereto. In the event that any part, section, clause,
      paragraph or subparagraph of this Agreement shall be held to be invalid,
      illegal or otherwise unenforceable, the entire agreement shall not fail on
      account thereof, and the balance of this Agreement shall continue in full
      force and effect.

14.7  HEADINGS, NUMBER, GENDER. Marginal headings as used in this Agreement are
      for the convenience of reference only and do not form a part of this
      Agreement and are not be used in the interpretation hereof. Whenever the
      singular or masculine or neuter is used throughout this Agreement the same
      shall be construed as meaning the plural or feminine or body corporate
      when the context of the parties hereto may require.

14.8  NOTICES. All notices, requests, directions or other communications
      ("Notices") required or permitted herein will be in writing and will be
      delivered to the parties hereto respectively as follows:

      IF TO THE LICENSEE:

      Molecular InSight Pharmaceutical, Inc. f/k/a Biostream, Inc.
      160 Second Street
      Cambridge, MA
      USA 02142

      Attention: John E. McCray, COO

      Facsimile No: 617-492-5664

                                                                   Page 20 of 27
<PAGE>

      With a copy to:

      Gabor Garai, Esq.
      Epstein Becker & Green, P.C.
      111 Huntington Avenue
      Boston, MA
      USA 02199

      Facsimile No.: 617-342-4001

      IF TO THE UNIVERSITY:

      Respecting administrative and financial matters, amendment or termination
      of this Agreement:

      Office of Industry Liaison
      Stevenson-Lawson Building
      Room 319
      The University of Western Ontario
      London, Ontario N6A 5B8

      Attention:    Director

      Facsimile No: 519-661-3907

Respecting scientific and technical matters:

      Department of Chemistry
      Faculty of Science
      The University of Western Ontario
      London, Ontario
      N6A 5B8

      Attention:    Dr. Duncan Hunter

      Facsimile No: 519-661-3022

      In order for any notice, request, direction, or other communication to be
      effective, it will be delivered by courier or sent by facsimile (followed
      by hard copy) addressed to the party for whom the Notice is intended at
      the above-mentioned address and will be deemed to have been received on
      the date of delivery if delivered by courier, and if sent by facsimile, on
      the next business day following electronic confirmation of the successful
      transmission of the facsimile. The address of either party may be changed
      by notice in the manner set out in this provision.

14.9  TIME OF THE ESSENCE. Time shall be of the essence of this Agreement.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the
date first written above.

                                                                   Page 21 of 27
<PAGE>

                                      THE UNIVERSITY OF WESTERN ONTARIO

                                      By:   /s/ Douglas S. Gill
                                            -----------------------------------
                                            Doug Gill
                                            Director, Office of Industry Liaison
                                      I have authority to bind the University.

                                      MOLECULAR INSIGHT PHARMACEUTICAL, INC.
                                      f/k/a Biostream, Inc.

                                      By:   /s/ John W. Babich
                                            -----------------------------------
                                            John W. Babich
                                            President

                                      I have authority to bind the Corporation.

                                                                   Page 22 of 27
<PAGE>

                                   SCHEDULE A

United States Patent Applications and Foreign Patent Applications:

      "Polymer Precursors of Radiolabeled Compounds and Methods of Making and
      Using the Same"
      PCT PCT/IB02/01958 and US filed 03/04/2002
      Inventors: Duncan Hunter and Mustafa Janabi
      Derived from US Provisionals 60/272,324 (filed 03/02/2001) and 60/280,225
      (filed 03/30/2001) (our ref 01-003).

United States Provisional Patent Application:

      "Prosthetic Groups Useful in the Synthesis of Radiopharmaceuticals"
      Serial No. 60/467,752, filed May 2, 2003
      Inventors: Duncan Hunter and Karen Gagnon
      (our ref. 02-018).

                                                                   Page 23 of 27
<PAGE>

                                   SCHEDULE B

                               DISPUTE RESOLUTION

In the event a dispute or disagreement (hereinafter called "Dispute") arises
between the parties in connection with the interpretation of any provision of
this Agreement or the compliance or non-compliance therewith, or the validity or
enforceability thereof, or the performance or non-performance of either party to
the Agreement, the following Dispute resolution process shall be followed by the
parties:

i.    A Dispute will be deemed to have arisen upon the delivery of a written
      notice by one party to the other describing the Dispute (herein called the
      "Dispute Notice"). Upon delivery of the Dispute Notice, the parties agree
      to attempt to resolve the Dispute in a prompt and expeditious manner.
      Except for the Dispute Notice, all communications between the parties will
      be on a without prejudice basis.

ii.   If the parties have not been able to resolve the dispute in a prompt and
      expeditious manner after delivery of the Dispute Notice, which time period
      shall not exceed thirty (30) days after such notice, either party may at
      any time thereafter request by written notice to the other party that the
      Dispute be escalated to Senior Management.

iii.  In the event such a request with written notice is made, each party shall
      make available the senior executives specified in the following subsection
      ("Senior Management") who shall meet within fifteen (15) Business Days
      after such request is made at the offices of the party which received the
      request to attempt to resolve the Dispute.

iv.   The Senior Management appointee for each party is as follows:

Licensee: John W. Babich, President

University: Vice-President, Research

Either party may change its Senior Management appointee upon prior written
notice to the other.

In case such Dispute is not settled amicably by Senior Management within thirty
(30) days of escalation to Senior Management, such Dispute shall be arbitrated
by a single arbitrator acting in accordance with the provisions of the
Arbitration Act, 1991 (Ontario), whose decision shall be final and binding upon
the parties. The arbitrator shall be the person that the parties may agree on
and in default of agreement within twenty (20) days following the expiration of
the above-mentioned thirty (30) day period, then either party may apply to a
Judge of a court having jurisdiction to appoint the single arbitrator who shall
be unconditionally accepted by both parties. The place of arbitration for
disputes for which arbitration is initiated by either party shall be London,
Ontario. The arbitrator as selected or appointed shall have knowledge of and
experience in the pharmaceutical industry. The language of any arbitration will
be English.

                                                                   Page 24 of 27
<PAGE>

The arbitration hearing shall commence within sixty (60) days after appointment
of the arbitrator is done and shall be completed and a binding award rendered in
writing within sixty (60) days after commencement of the hearing unless
exceptional circumstances warrant delay. The decision of the arbitrator may be
entered in any court of competent jurisdiction and execution entered thereupon
forthwith. The law specified in Section 14.2 of this Agreement shall apply.

Each party shall bear the cost of preparing its own case. The arbitrator shall
have the right to include in the award the prevailing party's costs of
arbitration and reasonable fees of attorneys, accountants, engineers and other
professionals incurred by it in connection with the arbitration. Failing a
specific award, the parties shall share equally the costs of the arbitrator and
arbitration proceedings.

Notwithstanding the provisions of this Schedule, the parties recognize that a
party may desire to seek emergency, provisional, or summary relief (including
temporary injunctive relief) to enforce the provisions of this Agreement
relating to protection of intellectual property and/or Confidential Information.
A party may seek such relief, provided, however, that immediately following the
issuance of any emergency, provisional, temporary injunctive or summary relief,
any such judicial proceedings shall be stayed (and each party shall consent to
such stay) pending resolution of any related underlying claims between the
parties.

                                                                   Page 25 of 27
<PAGE>

                                   SCHEDULE C

                            DESCRIPTION OF MATERIALS

Intentionally left blank.

                                                                   Page 26 of 27
<PAGE>
[*] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES ACT OF 1933, AS
AMENDED.

                                   SCHEDULE D

                  COMMERCIALIZATION DUE DILIGENCE REQUIREMENTS
                                 AND MILESTONES

A.    Licensee shall support contract research in the laboratory of Dr. Duncan
      Hunter in the amount of Canadian $[******] for the period May 1, 2003 to
      September 30, 2004. Licensee shall commit resources internally at a level
      not less than Canadian $[******] for the period from October 1, 2004 to
      September 30, 2005.

B.    Commencing August 1, 2005 for a period not to exceed thirty (30) days,
      Licensee and University shall negotiate in good faith further
      commercialization due diligence requirements and milestones to be
      incorporated into this Schedule D. Such negotiation will consider the
      commercial readiness of the Technology and Licensee's commercialization
      plans. It is anticipated such further commercialization due diligence
      requirements and milestones will include for example levels of research
      support, anticipated timelines for identification of lead compounds,
      advancement through clinical trial phases and ultimate commercial sales.

                                                                   Page 27 of 27
<PAGE>
<Table>
<S>                           <C>
                                                   INDUSTRY LIAISON
                                           The University of Western Ontario
[Research Western Logo]       1151 Richmond St. N.  -  Stevenson-Lawson Building, Room 328
                                         London, Ontario  -  Canada  -  N6A 5B8
                                 Tel: 519-661-4183 or 519-850-2307  -  Fax: 519-661-3907
                                                    anavarre@uwo.ca

</Table>

 AMENDMENT TO THE LICENSE MADE SEPTEMBER 5, 2003 FOR TECH IDS 01-003 AND 02-018

POLYMER SUPPORTED ALDEHYDES, ACIDS AND ACTIVATED ESTERS AS PRECURSORS FOR RADIO
LABELLING OF AMINE BEARING COMPOUNDS.- TECH ID 01-003
POLYMER SUPPORTED PROPENYL MESYLATES AS PRECURSORS FOR THE RADIO LABELLING OF
AMINES, SULFIDES AND ETHERS.- TECH ID 02-018

Hereby we agree to add Article 5.4(c):

     The University of Western Ontario will provide Molecular Insight
     Pharmaceuticals, Inc. with administrative support for and monitoring of
     prosecution done by a single Patent Agent Firm.

     The service fee of Canadian $2000.00 is payable annually on April 30th
     starting in 2005.

Molecular Insight Pharmaceuticals, Inc.        The University of Western Ontario

/s/ Dr. John Babich                            /s/ Dr. Alex Navarre
---------------------------------------        ------------------------------
Dr. John Babich                                Dr. Alex Navarre, Ph.D. M.B.A.
President and CSO                              Director, Industry Liaison
Date:                                          Date:

I have the authority to bind the Company       I have the authority to bind the
                                               University.

AN/ch<PAGE>
                                                                  Exhibit 10.18

                        IMAGING BIOPHARMACEUTICALS, INC.

                             1997 STOCK OPTION PLAN

      1. PURPOSE OF PLAN

            The purpose of this plan (the "Plan") is to encourage key employees
(including officers and directors who are employees), and officers, directors
and consultants who are not employees, of Imaging Biophmaecuticals, Inc., a
Massachusetts corporation, and any present or future subsidiary and parent of
Imaging Biopharmaecuticals, Inc. (hereinafter collectively referred to as the
"Company") to acquire shares of common stock of Imaging Biopharmaecuticals,
Inc., $.01 par value, (the "Common Stock") and thereby increase their
proprietary interest in the Company's success and provide an added incentive to
remain in the employ of, or continue to render services to, the Company. The
words "parent" and "subsidiary" shall be interpreted in accordance with Section
422 and Section 424 of the Internal Revenue Code of 1986, as amended from time
to time (the "Code"). It is intended that options granted under the Plan shall
constitute either "incentive stock options" within the meaning of-Section 422 of
the Code or "non-qualified options" as determined by the Board of Directors of
Imaging Biophmaecuticals, Inc. in its sole discretion and indicated on each form
of option grant (the "Option Grant"). The terms of the Plan and Option Grants
shall be construed accordingly. Only employees of the Company shall be eligible
to receive incentive stock options.

      2. SHARES RESERVED UNDER THE PLAN

            Subject to the adjustment provided in Section 9, the aggregate
number of shares of Common Stock of Imaging Biophannaecuticals, Inc. which may
be issued and sold pursuant to options granted under the Plan shall not exceed
178,200 shares of Common Stock, which may be either authorized and unissued
shares or treasury shares. If any options granted under the Plan shall terminate
or expire without being fully exercised, the shares that have not been purchased
will again become available for purposes of the Plan.

      3. ADMINISTRATION

            The Plan shall be administered solely by the Board of Directors. A
majority of the members present at any meeting at which a quorum is present, and
any acts approved in writing by all of the members of the Board of Directors
without a meeting, shall constitute the acts of the Board of Directors. The
Board of Directors shall have the powers granted to it throughout this Plan. The
Board of Directors is authorized to interpret the Plan and, subject to the
provisions of the Plan, to prescribe, amend, and rescind rules and regulations
relating thereto. The Board of Directors is further authorized, subject to the
express provisions of the Plan, to alter or amend the form of Option Grant
attached hereto and to make all other determinations necessary or advisable in
the administration of the Plan. The interpretation and administration by the
Board of Directors of any provisions of the Plan and the Option Grant shall be
find and conclusive on all

<PAGE>

persons having any interest therein

            No member of the Board of Directors shall be held liable for any
action or determination made in good faith with respect to the Plan or any
option granted thereunder.

      4. OPTION GRANTS

            Options to purchase shares of Common Stock under the Plan may be
granted to key employees (including officers and directors who are employees)
and officers, directors and consultants of the Company who are not employees of
the Company. In selecting the individuals to whom options will be granted and in
deciding how many shares of Common Stock will be subject to each option, the
Board of Directors shall give consideration to the importance of an individual's
duties, experience with the Company, future value to the Company, present and
potential contribution to the success of the Company, and to such other factors
as the Board of Directors may deem relevant. Subject to the express provisions
of the Plan and the forms of Option Grant incorporated herein by reference as
from time to time altered or amended, the Board of Directors shall have
authority to determine with respect to each option Grant the number of
installments, the number of shares of Common Stock in each installment and the
exercise dates, and, to the extent not inconsistent with the applicable
provisions of the Code, if any, the Board of Directors may specify additional
restrictions and conditions. Each incentive stock option shall expire not later
than ten years from the date of the grant of such option.

            Except as provided in Section 7 below, no incentive stock option may
be granted to any employee who, at the time such option is granted, owns stock
possessing more than 10 percent of the total combined voting power of all
classes of stock of the Company within the meaning of Section 422 of the Code.

            The date of grant of an option to an individual under the Plan
shall be the date the Board of Directors votes to grant the option, but no
optionee shall have the right to exercise his option until the Company has
executed and delivered the Option Grant to such optionee. Each option granted
under the Plan shall be evidenced by and subject to the terms and conditions of
the Option Grant which is incorporated into the Plan by reference as from time
to time altered or amended.

            No stock option may be transferred by the optionee other than by
will or the laws of descent and distribution, and, solely in the case of
non-qualified options, by a distribution pursuant to a qualified domestic
relations order as defined by the Code or Title I of the Employee Retirement
Income Security Act or the rules thereunder, and can be exercised during the
optionees life only by him.

      5. OPTION PRICE

            The price per share at which each option granted under the Plan may
be exercised shall be determined by the Board of Directors subject to the
provisions of this Section 5. In the case of an incentive stock option, the
exercise price shall not be less than the fair market value

                                                                               2

<PAGE>

per share on the date of grant, as determined by the Board of Directors in good
faith, in accordance with applicable provisions of the Code then in effect with
respect to incentive stock options.

      6. LIMITATION ON AMOUNT

            The aggregate fair market value (determined at the time the option
is granted) of the stock with respect to which incentive stock options are
exercisable for the first time by an individual during any calendar year under
all plans of the Company shall not exceed $100,000.

      7. SPECIAL RULE FOR 10 PERCENT SHAREHOLDERS

            The Board of Directors may grant incentive stock options under this
Plan to persons who own more than 10 percent of the combined voting stock of the
Company if (i) at the time of the Option Grant the price per share at which the
option may be exercised is at least 110 percent of the fair market value of the
stock subject to the option and (ii) such option is not exercisable after the
expiration of five years from the date such option is granted.

      8. NON-OUALIFIED OPTIONS

            Notwithstanding the provisions of Sections 4, 5,6 and 7 of this
Plan, the Board of Directors may grant options which in one or more respects do
not meet the requirements for incentive stock options established by Section 422
of the Code. The Board of Directors shall indicate on each Option Grant whether
an incentive stock option within the meaning of Section 422 of the Code or a
non-qualified option is thereby granted.

            Except as otherwise provided in this Plan, the Board of Directors,
in its sole discretion, shall establish the terms and conditions for each
non-qualified option which it grants. Such terms and conditions may, but need
not, include some or all of the provisions of Section 4, 5,6 and 7 of this Plan
with respect to incentive stock options. If the Board of Directors grants an
option which in all respects meets the requirements for incentive stock options
it may nonetheless designate such option a non-qualified option on the Option
Grant, in which case it shall be deemed not to be an incentive stock option.

      9. ADJUSTMENT OF SHARES RESERVED UNDER THE PLAN

            The aggregate number and kind of shares reserved under the Plan, the
maximum number of shares as to which options may be granted to any individual
and the option price per share shall be appropriately adjusted by the Board of
Directors in the event of any recapitalization of the Company.

      10. DISSOLUTION OR REORGANIZATION

            Prior to a dissolution, liquidation, merger, consolidation, or
reorganization of the Company (the "Event"), the Board of Directors may decide
to terminate each outstanding option. If the Board of Directors so decides, such
option shall terminate as of the effective date of the

                                                                               3

<PAGE>

Event, but the Board of Directors shall suspend the exercise of all outstanding
options a reasonable time prior to the Event, giving each optionee not less than
fourteen days' written notice of the date of suspension, prior to which an
optionee may purchase in whole or in part the shares available to him as of the
date of receipt of the notice. If the Event is not consummated, the suspension
shall be removed and all options shall continue in full force and effect.

      11. AMENDMENT AND TERMINATION OF PLAN

            The Board of Directors may amend, suspend, or terminate the Plan,
including the form of Option Grant incorporated herein by reference. No such
action, however, may, without approval or ratification by the shareholders, make
any change which, pursuant to the Code or regulations thereunder, requires
action by the shareholders. No such action may, without the consent of the
holder of the option, alter or impair any option previously granted.

            In any event, the Plan shall terminate 10 years from the date of
adoption by the Board of Directors. Any shares remaining under the Plan at the
time of termination which are not subject to outstanding options and any shares
which thereafter become available because of the expiration or termination of an
option shall cease to be reserved for purposes of the Plan.

      12. RIGHT TO TERMINATE EMPLOYMENT

            Nothing contained herein or in any Option Grant executed pursuant
hereto shall restrict the right of the Company to terminate the employment of
any optionee at any time.

      13. DATE OF ADOPTION AND APPROVAL

            The date of adoption of this Plan by the Board of Directors and the
Plan's effective date is January 9, 1997. The date of approval of this Plan by
the Shareholders of Imaging Biopharmaceuticals, Inc. is January 9, 1997.

                                                                               4

<PAGE>

                      Amendments to 1997 Stock Option Plan

      1. On March 5, 1998, Imaging Biopharmaceuticals, Inc. changed its name to
Biostream, Inc.

      2. On February 29,2000 the 1997 Stock Option Plan was amended by the
company's stockholders to increase the number of authorized shares of common
stock available for issuance thereunder from 178,200 shares to 678,200 shares of
Common Stock.

      3. On April 12,2000 the Board of Directors of Biostream, Inc. declared a
2-for-1 common stock split, which split was approved by the stockholders on
April 13,2000.

      4. On January 23,2003 the 1997 Stock Option Plan was amended by the
company's stockholders to increase the number of authorized shares of common
stock available for issuance thereunder to an aggregate total of 13,000,000
shares of Common Stock.

      5. On April 25,2003 Biostream, Inc. changed its name to Molecular Insight
Pharmaceuticals, Inc.

                                                                               5

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