Document:

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                                                                   Exhibit 10.2

                           PHOTOGEN TECHNOLOGIES, INC.

             SENIOR EXECUTIVE LONG TERM INCENTIVE COMPENSATION PLAN

1.       ESTABLISHMENT, OBJECTIVES AND DURATION.

         a.       ESTABLISHMENT OF THE PLAN. Photogen Technologies, Inc. hereby
                  establishes an incentive compensation plan to be known as the
                  "Photogen Technologies, Inc. Senior Executive Long Term
                  Incentive Compensation Plan" (the "Plan"), as set forth in
                  this document. The Plan permits the grant of Incentive Stock
                  Options, Nonqualified Stock Options and Restricted Stock.

         b.       OBJECTIVES OF THE PLAN. The objectives of the Plan are to
                  optimize the profitability and growth of the Company through
                  the use of incentives which are consistent with the Company's
                  objectives and which link the interests of Participants to
                  those of the Company's stockholders; to provide Participants
                  with an incentive for excellence in individual performance;
                  and to promote teamwork among Participants. The Plan is
                  further intended to provide flexibility to the Company in its
                  ability to motivate, attract, and retain the services of
                  Participants who make significant contributions to the
                  Company's success and to allow Participants to share in the
                  success of the Company.

         c.       DURATION OF THE PLAN. The Plan shall become effective as of
                  the date it is approved by the stockholders of Photogen
                  Technologies, Inc. (the "Effective Date"). The Plan shall
                  remain in effect, subject to the right of the Board of
                  Directors or the Committee to amend or terminate the Plan at
                  any time pursuant to Section 11 hereof, until all Shares
                  subject to it shall have been purchased or acquired according
                  to the Plan's provisions. However, in no event may an
                  Incentive Stock Option be granted under the Plan on or after
                  May 17, 2011.

2.       DEFINITIONS.

Whenever used in the Plan, the following terms shall have the meanings set forth
below:

         a.       "AFFILIATE" means a "parent corporation" or "subsidiary
                  corporation" as defined in Section 424 of the Code.

         b.       "AWARD" means, individually or collectively, a grant under
                  this Plan of Incentive Stock Options, Nonqualified Stock
                  Options or Restricted Stock.

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         c.       "AWARD AGREEMENT" means an agreement entered into by the
                  Company and each Participant setting forth the terms and
                  provisions applicable to Awards granted under this Plan.

         d.       "BENEFICIAL OWNER" or "BENEFICIAL OWNERSHIP" shall have the
                  meaning ascribed to such term in Rule 13d-3 of the General
                  Rules and Regulations under the Exchange Act.

         e.       "BOARD" or "BOARD OF DIRECTORS" means the Board of Directors
                  of the Company.

         f.       "CAUSE" shall be determined by the Committee, exercising good
                  faith and reasonable judgment, and shall mean the occurrence
                  of any one or more of the following:

                  i.       The willful and continued failure by the Participant
                           to substantially perform his duties (other than any
                           such failure resulting from the Participant's
                           Disability) after a written demand for substantial
                           performance is delivered by the Committee to the
                           Participant that identifies in reasonable detail the
                           manner in which the Committee believes that the
                           Participant has not substantially performed his
                           duties, and the Participant has failed to remedy the
                           situation within 30 calendar days of receiving such
                           notice; or

                  ii.      The Participant's conviction for committing an act of
                           fraud, embezzlement, theft or another act
                           constituting a felony; or

                  iii.     Any breach by a Participant of any written agreement
                           with the Company, including any agreement concerning
                           a Participant's employment, non-competition or
                           confidentiality of Company proprietary information;

                  iv.      The willful engaging by the Participant in gross
                           misconduct materially and demonstrably injurious to
                           the Company, as determined by the Committee; or

                  v.       Any act or omission entitling the Company to
                           terminate a Participant's employment for cause as
                           defined in any applicable agreement between the
                           Participant and Company which hereby supercede the
                           standards in clauses (i) through (iv) above to the
                           extent inconsistent.

         g.       "CHANGE IN CONTROL" of the Company shall be deemed to have
                  occurred as of the first day that any one or more of the
                  following conditions shall have been satisfied:

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                  i.       The acquisition by any Person of Beneficial Ownership
                           of 50% or more of either (A) the then outstanding
                           shares of Common Stock of the Company, or (B) the
                           combined voting power of the outstanding voting
                           securities of the Company entitled to vote generally
                           in the election of Directors; provided, however, that
                           for purposes of this subsection, the following
                           transactions shall not constitute a Change of
                           Control: (1) any acquisition directly from the
                           Company through a public offering of shares of Common
                           Stock of the Company, (2) any acquisition by the
                           Company, (3) any acquisition by any employee benefit
                           plan (or related trust) sponsored or maintained by
                           the Company or any corporation controlled by the
                           Company, or (4) any acquisition by any corporation
                           pursuant to a transaction which complies with clauses
                           (A), (B) and (C) of subsection (iii) below;

                  ii.      The cessation, for any reason, of the individuals who
                           constitute the Company's Board of Directors as of May
                           18, 2000 ("Incumbent Board") to constitute at least a
                           majority of the Company's Board of Directors;
                           provided, however, that any individual becoming a
                           Director following said date whose election, or
                           nomination for election by the Company's
                           stockholders, was approved by a vote of at least a
                           majority of the Directors then comprising the
                           Incumbent Board shall be considered as though such
                           individual was a member of the Incumbent Board, but
                           excluding, for this purpose, any such individual
                           whose initial assumption of office occurs because of
                           an actual or threatened election contest with respect
                           to the election or removal of Directors or other
                           actual or threatened solicitation of proxies or
                           consents by or on behalf of a Person other than the
                           Company's Board of Directors;

                  iii.     The consummation of a reorganization, merger or
                           consolidation or sale or other disposition of all or
                           substantially all of the assets of the Company
                           ("Business Combination") unless, following such
                           Business Combination, (A) all or substantially all of
                           the individuals and entities who were the Beneficial
                           Owners, respectively, of the outstanding shares of
                           Common Stock of the Company and the outstanding
                           voting securities of the Company immediately before
                           such Business Combination beneficially own, directly
                           or indirectly, more than 50% of, respectively, the
                           then outstanding shares of Common Stock and the
                           combined voting power of the then outstanding voting
                           securities entitled to vote generally in the election
                           of Directors, as the case may be, of the Company
                           resulting from such Business Combination (including,
                           without limitation, a corporation which as a result
                           of such transaction owns the Company or all or
                           substantially all of the Company's assets either
                           directly or through one or

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                           more subsidiaries) in substantially the same
                           proportions as their ownership immediately before
                           such Business Combination of the outstanding shares
                           of Common Stock and the outstanding voting securities
                           of the Company, as the case may be; (B) no party
                           (excluding any corporation resulting from such
                           Business Combination or any employee benefit plan (or
                           related trust) of the Company or such corporation
                           resulting from such Business Combination)
                           beneficially owns, directly or indirectly, 50% or
                           more of, respectively, the then outstanding shares of
                           common stock of the corporation resulting from such
                           Business Combination or the combined voting power of
                           the then outstanding voting securities of such
                           corporation except to the extent that such ownership
                           existed before the Business Combination; and (C) at
                           least a majority of the members of the board of
                           directors of the corporation resulting from such
                           Business Combination were members of the Company's
                           Board of Directors at the time of the execution of
                           the initial agreement, or of the action of the
                           Company's Board of Directors, providing for such
                           Business Combination; or

                  iv.      The approval by the stockholders of the Company of a
                           complete liquidation or dissolution of the Company.

         h.       "CODE" means the Internal Revenue Code of 1986, as amended
                  from time to time.

         i.       "COMMITTEE" means the Compensation Committee of the Board, as
                  specified in Section 3 herein, or such other Committee
                  appointed by the Board to administer the Plan with respect to
                  grants of Awards.

         j.       "COMPANY" means Photogen Technologies, Inc., a Nevada
                  corporation, and also means any corporation of which a
                  majority of the voting capital stock is owned directly or
                  indirectly by Photogen Technologies Inc. or by any of its
                  Subsidiaries, and any other corporation designated by the
                  Committee as being a Company hereunder (but only during the
                  period of such ownership or designation).

         k.       "DIRECTOR" means any individual who is a member of the Board
                  of Directors of the Company.

         l.       "DISABILITY", unless a different standard is set forth in any
                  written agreement with a Participant, as applied to a
                  Participant "Disability" means that the Participant (a) has
                  established to the satisfaction of the Committee that the
                  Participant is unable to engage in any substantial gainful
                  activity by reason of any medically determinable physical or
                  mental impairment which can be expected to last for a
                  continuous period of no less than 12 months (all within the
                  meaning of

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                  Section 22(e)(3) of the Code), and (b) has satisfied any
                  requirement imposed by the Committee in regard to evidence of
                  such disability.

         m.       "ELIGIBLE PERSON" shall mean any executive officer who is an
                  Employee of the Company or any Affiliate.

         n.       "EMPLOYEE" means any executive officer employed by the
                  Company or an Affiliate.

         o.       "EXCHANGE ACT" means the Securities Exchange Act of 1934, as
                  amended from time to time, or any successor act thereto.

         p.       "FAIR MARKET VALUE" Except as otherwise determined by the
                  Committee, the "Fair Market Value" of a share of Common Stock
                  as of any date shall be equal to the closing sale price of a
                  share of Common Stock as reported on The National Association
                  of Securities Dealers' New York Stock Exchange Composite
                  Reporting Tape (or if the Common Stock is not traded on The
                  New York Stock Exchange, the closing sale price on the
                  exchange on which it is traded or as reported by an applicable
                  automated quotation system, including the Nasdaq SmallCap
                  Market or over-the-counter bulletin board) (the "Composite
                  Tape"), on the applicable date or, if no sales of Common Stock
                  are reported on such date, the closing sale price of a share
                  of Common Stock on the date the Common Stock was last reported
                  on the Composite Tape (or any other exchange or automated
                  quotation system, if applicable) as of the date specified by
                  the Committee (and if no date is specified, then on the date
                  of the meeting of the Committee at which the award was
                  granted).

         q.       "IMMEDIATE FAMILY MEMBERS" means the spouse, children and
                  grandchildren of a Participant.

         r.       "INCENTIVE STOCK OPTION" or "ISO" means an option to purchase
                  Shares granted under Section 6 herein and which is designated
                  as an Incentive Stock Option and which is intended to meet the
                  requirements of Code Section 422.

         s.       "INSIDER" shall mean an individual who is, on the relevant
                  date, a Director, a 10% Beneficial Owner of any class of the
                  Company's equity securities that is registered pursuant to
                  Section 12 of the Exchange Act or an officer of the Company,
                  as defined under Section 16 of the Exchange Act and as
                  determined by the Board of Directors from time to time.

         t.       "NONEMPLOYEE DIRECTOR" means an individual who is a member of
                  the Board of Directors of the Company but who is not an
                  Employee of the Company.

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         u.       "NONQUALIFIED STOCK OPTION" or "NQSO" means an option to
                  purchase Shares granted under Section 6 herein and which is
                  not intended to meet the requirements of Code Section 422.

         v.       "OPTION" means an Incentive Stock Option or a Nonqualified
                  Stock Option, as described in Section 6 herein.

         w.       "OPTION PRICE" means the price at which a Share may be
                  purchased by a Participant pursuant to an Option.

         x.       "PARTICIPANT" means an Eligible Person who has outstanding an
                  Award granted under the Plan.

         y.       "PERIOD OF RESTRICTION" means the period during which the
                  transfer of Shares of Restricted Stock is limited in some way
                  (based on the passage of time, the achievement of performance
                  objectives, or upon the occurrence of other events as
                  determined by the Committee, at its discretion), and the
                  Shares of Restricted Stock are subject to a substantial risk
                  of forfeiture, as provided in Section 7 herein.

         z.       "PERSON" shall have the meaning ascribed to such term in
                  Section 3(a)(9) of the Exchange Act and used in Sections 13(d)
                  and 14(d) thereof, including a "group" as defined in Section
                  13(d) thereof.

         aa.      "RESTRICTED STOCK" means an Award granted to a Participant
                  pursuant to Section 7 herein.

         bb.      "RETIREMENT"unless a different standard is set forth in any
                  written agreement with a Participant, as applied to a
                  Participant "Retirement" means the Participant's termination
                  of employment in a manner which qualifies the Participant to
                  receive immediately payable retirement benefits under any
                  applicable retirement plan maintained by the Company (the
                  "Retirement Plan"), under the successor or replacement of such
                  Retirement Plan if it is then no longer in effect, or under
                  any other retirement plan maintained or adopted by the Company
                  which is determined by the Committee to be the functional
                  equivalent of such Retirement Plan; or, with respect to a
                  Participant who may not or has not participated in a
                  retirement plan or if there is no such retirement plan
                  maintained by the Company or an Affiliate, "Retirement" shall
                  have the meaning determined by the Committee from time to
                  time.

         cc.      "SHARES" means Common Stock of Photogen Technologies, Inc.,
                  par value $.001 per share.

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         dd.      "SUBSIDIARY" means any corporation, partnership, joint venture
                  or other entity in which the Company has a majority voting
                  interest.

3.       ADMINISTRATION.

         a.       THE COMMITTEE. The Plan shall be administered by the
                  Committee, or by any other committee appointed by the Board,
                  which Committee shall consist solely of two or more
                  "Nonemployee Directors" within the meaning of Rule 16b-3 under
                  the Exchange Act, or any successor provision. The members of
                  the Committee shall be appointed from time to time by, and
                  shall serve at the discretion of, the Board of Directors.

         b.       AUTHORITY OF THE COMMITTEE. Except as limited by law and
                  subject to the provisions herein, the Committee shall have
                  full power in its discretion to select Eligible Persons who
                  shall participate in the Plan; determine the sizes and types
                  of Awards; determine the terms and conditions of Awards
                  (including vesting periods and restrictions); prescribe the
                  form of, construe and interpret any agreement or instrument
                  entered into under the Plan as they apply to Participants;
                  construe and interpret the terms and conditions of this Plan;
                  establish, amend, or waive rules and regulations for the
                  Plan's administration as they apply to Participants; alter,
                  amend, suspend or terminate the Plan in whole or in part; and
                  (subject to the provisions of Section 11 herein) amend the
                  terms and conditions of any outstanding Award to the extent
                  such terms and conditions are within the discretion of the
                  Committee as provided in the Plan. Further, the Committee
                  shall make all other determinations which may be necessary or
                  advisable for the administration of the Plan. As permitted by
                  law, the Committee may delegate its authority as identified
                  herein.

         c.       DECISIONS BINDING. All determinations and decisions made by
                  the Committee pursuant to the provisions of the Plan and all
                  related orders and resolutions of the Board shall be final,
                  conclusive and binding on all persons, including the Company,
                  its stockholders, Employees, Participants and their estates
                  and beneficiaries.

         d.       COSTS OF PLAN. The costs and expenses incurred in the
                  operation and administration of the Plan shall be borne by the
                  Company.

         e.       INDEMNIFICATION. Each person who is or shall have been a
                  member of the Committee shall be indemnified and held harmless
                  by the Company against and from any loss, cost, liability, or
                  expense that may be imposed upon or reasonably incurred by him
                  in connection with or resulting from any claim, action, suit,
                  or proceeding to which he may be a party or in which he may be
                  involved by reason of any action taken or failure to act under
                  the Plan and against and from any and

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                  all amounts paid by him in settlement thereof, to the fullest
                  extent permitted by the Nevada General Corporation Law. The
                  foregoing right of indemnification shall not be exclusive of
                  any other rights of indemnification to which such persons may
                  be entitled under the Company's Sections of Incorporation or
                  Bylaws, as a matter of law, or otherwise, or any power that
                  the Company may have to indemnify them or hold them harmless.
                  In addition, a member of the Committee, in the performance of
                  any act (or in refraining from taking any action) in
                  connection with the Plan, shall not be liable to the Company,
                  its stockholders, Employees, Participants or any person when
                  relying in good faith upon the records of the Company or upon
                  such information or statements presented to the Company by any
                  of its officers, employees or other persons as to matters the
                  member reasonably believes are within such other person's
                  professional or expert competence and who has been selected
                  with reasonable care by or on behalf of the Company.

4.       SHARES SUBJECT TO THE PLAN AND MAXIMUM AWARDS.

         a.       NUMBER OF SHARES AVAILABLE FOR GRANTS. Subject to adjustment
                  as provided in Section 4(b) herein, the number of Shares
                  hereby reserved for issuance to Participants under the Plan
                  shall be 3,000,000. Shares issued upon exercise of Options or
                  Awards of Restricted Stock under the Plan may be either
                  authorized but unissued Shares or Shares re-acquired by the
                  Company. If, on or prior to the termination of the Plan, an
                  Award granted thereunder expires or is terminated for any
                  reason without having been exercised or vested in full, the
                  unpurchased or unvested Shares covered thereby will again
                  become available for the grant of Awards under the Plan.
                  Shares of Common Stock covered by Options surrendered in
                  connection with the exercise of other Options shall not be
                  deemed to have been exercised and shall again become available
                  for the grant of awards under the Plan.

         b.       ADJUSTMENTS IN AUTHORIZED SHARES. In the event of any change
                  in corporate capitalization, such as a stock split, or a
                  corporate transaction, such as any merger, consolidation,
                  separation, including a spin-off, or other distribution of
                  stock or property of the Company, any reorganization (whether
                  or not such reorganization comes within the definition of such
                  term in Code Section 368) or any partial or complete
                  liquidation of the Company, such adjustment shall be made in
                  the number and class of Shares which may be delivered under
                  Section 4(a), in the number and class of and/or price of
                  Shares subject to outstanding Awards granted under the Plan,
                  and in the Award limits set forth in Section 4(a), as may be
                  determined to be appropriate and equitable by the Committee,
                  in its sole discretion, to prevent dilution or enlargement of
                  rights; provided, however, that the number of Shares subject
                  to any Award shall always be a whole number.

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5.       ELIGIBILITY AND PARTICIPATION.

         a.       ELIGIBILITY. All Eligible Persons are eligible to participate
                  in this Plan.

         b.       ACTUAL PARTICIPATION. Subject to the provisions of the Plan,
                  the Committee may from time to time in its discretion select
                  Eligible Persons to whom Awards shall be granted and shall
                  determine the nature and amount of each Award.

         c.       PERFORMANCE-BASED AWARDS. The Committee may, in its
                  discretion, grant Awards that are wholly contingent on the
                  attainment of performance goals established by the Committee
                  from time to time. The performance goals may relate to one or
                  more of the following performance measures, as determined by
                  the Committee for each applicable performance period: (i)
                  return to stockholders, (ii) cash flow, (iii) return on
                  equity, (iv) Company created income (for example, income due
                  to Company initiated cost reductions or productivity
                  improvements), (v) sales growth, (vi) earnings and earnings
                  growth, (vii) return on assets, (viii) stock price, (ix)
                  earnings per share, (x) market share, (xi) customer
                  satisfaction, and (xii) attaining regulatory approvals or
                  other regulatory benchmarks. Any such performance goals and
                  the applicable performance measures will be determined by the
                  Committee at the time of grant and reflected in an Award
                  Agreement. The number or value of performance-based stock
                  Awards that will be paid out to any Participant at the end of
                  the applicable performance period, which may be one year or
                  longer as determined by the Committee, will depend on the
                  extent to which the Company attains the established
                  performance goals. Awards intended to be performance-based
                  stock Awards shall be subject to such restrictions and
                  conditions as may be required under Section 162(m) to be
                  performance-based compensation thereunder.

6.       STOCK OPTIONS.

         a.       GRANT OF OPTIONS. Subject to the terms and provisions of the
                  Plan, Options may be granted to Participants in such number,
                  and upon such terms, and at any time and from time to time as
                  shall be determined by the Committee.

         b.       AWARD AGREEMENT. Each Option grant shall be evidenced by an
                  Award Agreement that shall specify the Option Price, the
                  duration of the Option, the number of Shares to which the
                  Option pertains, and such other provisions as the Committee
                  shall determine, which need not be uniform for all
                  Participants. The Award Agreement also shall specify whether
                  the Option is intended to be an ISO within the meaning of Code
                  Section 422, or an NQSO whose grant is intended not to fall
                  under the provisions of Code Section 422.

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         c.       PROVISIONS FOR NQSOs. Each Stock Option intended to be a
                  Non-Qualified Stock Option shall be subject to the terms and
                  conditions which the Committee determines to be appropriate,
                  subject to the following minimum standards for any such
                  Non-Qualified Stock Option:

                  i.       The option price (per share) of the Shares covered by
                           each Non-Qualified Stock Option shall be determined
                           by the Committee but shall not be less than the par
                           value per share of Common Stock.

                  ii.      Each Award Agreement shall state the date or dates on
                           which it first is exercisable and the date after
                           which it may no longer be exercised, and may provide
                           that the Stock Option rights accrue or become
                           exercisable in installments over a period of months
                           or years, or upon the occurrence of certain
                           conditions or the attainment of stated goals or
                           events; and

                  iii.     Exercise of any Stock Option may be conditioned upon
                           the Participant's execution of a Share purchase
                           agreement in form satisfactory to the Committee
                           providing, among other things, that:

                           (1)      The Participant's or the Participant's
                                    estate, heirs and representatives right to
                                    sell the Shares may be restricted; and

                           (2)      The Participant or the Participant's estate,
                                    heirs and representatives may be required to
                                    execute letters of investment intent and
                                    must also acknowledge that the Shares will
                                    bear legends noting any applicable
                                    restrictions.

         d.       PROVISIONS FOR ISOs. Each Stock Option intended to be an
                  Incentive Stock Option shall be issued only to an Employee and
                  be subject to at least the following terms and conditions,
                  with such additional restrictions or changes as the Committee
                  determines are appropriate but not in conflict with Code
                  Section 422 and relevant regulations and rulings of the
                  Internal Revenue Service:

                  i.       The Incentive Stock Option shall meet the minimum
                           standards required of Non-Qualified Stock Options, as
                           described in Section 6(c) except clause (i)
                           thereunder.

                  ii.      Immediately before the Incentive Stock Option is
                           granted, if the Participant owns, directly or by
                           reason of the applicable attribution rules in Code
                           Section 424(d):

                           (1)      Ten percent (10%) or less of the total
                                    combined voting power of all classes of
                                    share capital of the Company or an
                                    Affiliate, the option

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                                    price per share of the Shares covered by
                                    each Incentive Stock Option shall not be
                                    less than one hundred percent (100%) of the
                                    Fair Market Value per share of the Shares on
                                    the date of the grant of the Incentive Stock
                                    Option.

                           (2)      More than ten percent (10%) of the total
                                    combined voting power of all classes of
                                    share capital of the Company or an
                                    Affiliate, the option price per share of the
                                    Shares covered by each Incentive Stock
                                    Option shall not be less than one hundred
                                    ten percent (110%) of the said Fair Market
                                    Value on the date of grant.

                  iii. For Participants who own:

                           (1)      Ten percent (10%) or less of the total
                                    combined voting power of all classes of
                                    share capital of the Company or an
                                    Affiliate, each Incentive Stock Option shall
                                    terminate not more than ten (10) years from
                                    the date of the grant or at such earlier
                                    time as the Award Agreement may provide;

                           (2)      More than ten percent (10%) of the total
                                    combined voting power of all classes of
                                    share capital of the Company or an
                                    Affiliate, each Incentive Stock Option shall
                                    terminate not more than five (5) years from
                                    the date of the grant or at such earlier
                                    time as the Award Agreement may provide.

                  iv.      The Award Agreements shall restrict the amount of
                           Options which may be exercisable in any calendar year
                           (under this or any other Incentive Stock Option plan
                           of the Company or an Affiliate) so that the aggregate
                           Fair Market Value (determined at the time each
                           Incentive Stock Option is granted) of the stock with
                           respect to which Incentive Stock Options are
                           exercisable for the first time by the Participant in
                           any calendar year does not exceed one hundred
                           thousand dollars ($100,000), provided that this
                           subparagraph shall have no force or effect if its
                           inclusion in the Plan is not necessary for Options
                           issued as Incentive Stock Options to qualify as
                           Incentive Stock Options pursuant to Section 422(d) of
                           the Code.

                  v.       No Incentive Stock Options shall be granted after the
                           date which is the earlier of ten (10) years from the
                           date of the adoption of the Plan by the Company and
                           the date of the approval of this Plan by the
                           shareholders of the Company.

                  vi.      Each Participant who receives an Incentive Stock
                           Option must agree to notify the Company in writing
                           immediately after the Participant makes a

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                           Disqualifying Disposition of any shares acquired
                           pursuant to the exercise of an Incentive Stock
                           Option. A Disqualifying Disposition is any
                           disposition (including any sale) of such shares
                           before the later of (i) two years after the date the
                           Participant was granted the Incentive Stock Option,
                           or (ii) one year after the date the Participant
                           acquired shares by exercising the Incentive Stock
                           Option. If the Participant has died before such stock
                           is sold, these holding period requirements do not
                           apply and no Disqualifying Disposition can occur
                           thereafter.

         e.       PAYMENT. Options granted under this Section 6 shall be
                  exercised in accordance with the applicable Award Agreement by
                  the delivery of a proper notice of exercise to the Company,
                  setting forth the number of Shares with respect to which the
                  Option is to be exercised. No shares of Common Stock shall be
                  issued on the exercise of an Option unless the Option Price is
                  paid for in full at the time of exercise. Payment shall be
                  made in cash, which may be paid by check or other instrument
                  acceptable to the Committee. In addition, subject to
                  compliance with applicable laws and regulations and such
                  conditions as the Committee may impose, the Option holder may
                  deliver with his exercise notice irrevocable instructions to a
                  broker to promptly deliver to the Company an amount of sale or
                  loan proceeds sufficient to pay the exercise price or other
                  methods approved by the Committee. As soon as practicable
                  after receipt of proper notification of exercise and full
                  payment, the Company shall deliver to the Participant, in the
                  Participant's name, Share certificates in an appropriate
                  amount based upon the number of Shares purchased under the
                  Option(s).

         f.       RESTRICTIONS ON SHARE TRANSFERABILITY. The Committee may
                  impose such restrictions on any Shares acquired pursuant to
                  the exercise of an Option granted under this Section 6 as it
                  may deem advisable, including, without limitation,
                  restrictions under applicable federal securities laws, under
                  the requirements of any stock exchange or market upon which
                  such Shares are then listed and/or traded, and under any state
                  securities laws applicable to such Shares.

         g.       TERMINATION OF EMPLOYMENT. Each Option, to the extent it has
                  not been previously exercised, shall terminate upon the
                  earliest to occur of: (a) the expiration of the Option period
                  set forth in the Award Agreement; (b) for ISOs, the expiration
                  of three months following the Participant's Retirement
                  (following the Participant's Retirement, NQSOs shall terminate
                  upon the expiration of the Option period set forth in the
                  Option Award Agreement); (c) the expiration of 12 months
                  following the Participant's death or Disability; (d)
                  immediately upon termination for Cause; (e) the expiration of
                  90 days following the Participant's termination of employment
                  for any reason other than Cause, Change in Control, death,
                  Disability, or Retirement; or (f) at such other time or times
                  and on such conditions provided for in the Award Agreement.
                  Upon a termination of

                                       12

<PAGE>

                  employment related to a Change in Control, Options shall be
                  treated in the manner set forth in Section 10.

         h.       NONTRANSFERABILITY OF OPTIONS.

                  i.       INCENTIVE STOCK OPTIONS. No ISO granted under the
                           Plan may be sold, transferred, pledged, assigned or
                           otherwise alienated or hypothecated, other than by
                           will or by the laws of descent and distribution.
                           Further, all ISOs granted to a Participant under the
                           Plan shall be exercisable during his or her lifetime
                           only by such Participant.

                  ii.      NONQUALIFIED STOCK OPTIONS. The Committee may, in its
                           discretion, authorize all or a portion of NQSOs
                           granted to a Participant to be on terms which permit
                           transfer by such Participant to (i) Immediate Family
                           Members, (ii) a trust or trusts for the exclusive
                           benefit of such Immediate Family Members, or (iii) a
                           partnership in which such Immediate Family Members
                           are the only partners, provided that (A) there may be
                           no consideration for any such transfer, (B) the Award
                           Agreement pursuant to which such Options are granted
                           must be approved by the Committee, and must expressly
                           provide for transferability in a manner consistent
                           with this Section, and (C) subsequent transfers of
                           transferred Options shall be prohibited except those
                           by will or the laws of descent and distribution.
                           Following transfer, any such Options shall continue
                           to be subject to the same terms and conditions as
                           were applicable immediately prior to transfer,
                           provided that for purposes of this Plan, the term
                           "Participant" shall be deemed to refer to the
                           transferee. The events of termination of employment
                           shall continue to be applied with respect to the
                           original Participant, following which the Options
                           shall be exercisable by the transferee only to the
                           extent, and for the periods specified in this Section
                           6(h). Notwithstanding the foregoing, should the
                           Committee provide that Options granted be
                           transferable, the Company by such action incurs no
                           obligation to notify or otherwise provide notice to a
                           transferee of early termination of the Option. In the
                           event of a transfer, as set forth above, the original
                           Participant is and will remain subject to and
                           responsible for any applicable withholding taxes upon
                           the exercise of such Options.

                                       13

<PAGE>

7.       RESTRICTED STOCK.

         a.       GRANT OF RESTRICTED STOCK. Subject to the terms and provisions
                  of the Plan, the Committee, at any time and from time to time,
                  may grant Shares of Restricted Stock to Participants in such
                  amounts as the Committee shall determine. Without limiting the
                  generality of the foregoing, Restricted Shares may be granted
                  in connection with payouts under other compensation programs
                  of the Company.

         b.       RESTRICTED STOCK AGREEMENT. Each Restricted Stock grant shall
                  be evidenced by a Restricted Stock Award Agreement that shall
                  specify the Period(s) of Restriction, the number of Shares of
                  Restricted Stock granted, and such other provisions as the
                  Committee shall determine.

         c.       TRANSFERABILITY. Except as provided in this Section 7, the
                  Shares of Restricted Stock granted herein may not be sold,
                  transferred, pledged, assigned or otherwise alienated or
                  hypothecated until the end of the applicable Period of
                  Restriction established by the Committee and specified in the
                  Restricted Stock Award Agreement, or upon earlier satisfaction
                  of any other conditions, as specified by the Committee in its
                  sole discretion and set forth in the Restricted Stock Award
                  Agreement. All rights with respect to the Restricted Stock
                  granted to a Participant under the Plan shall be available
                  during his or her lifetime only to such Participant.

         d.       OTHER RESTRICTIONS. Subject to the Plan, the Committee shall
                  impose such other conditions and/or restrictions on any Shares
                  of Restricted Stock granted pursuant to the Plan as it may
                  deem advisable including, without limitation, a requirement
                  that Participants pay a stipulated purchase price for each
                  Share of Restricted Stock, restrictions based upon the
                  achievement of specific performance objectives, time-based
                  restrictions on vesting following the attainment of the
                  performance objectives, and/or restrictions under applicable
                  federal or state securities laws. At the discretion of the
                  Committee, the Company may retain the certificates
                  representing Shares of Restricted Stock in the Company's
                  possession until such time as all conditions and/or
                  restrictions applicable to such Shares have been satisfied.
                  Except as otherwise provided in this Section 7, Shares of
                  Restricted Stock covered by each Restricted Stock grant made
                  under the Plan shall become freely transferable by the
                  Participant after the last day of the applicable Period of
                  Restriction, subject to applicable securities laws.

         e.       VOTING RIGHTS. During the Period of Restriction, Participants
                  holding Shares of Restricted Stock granted hereunder may
                  exercise full voting rights with respect to those Shares.

                                       14

<PAGE>

         f.       DIVIDENDS AND OTHER DISTRIBUTIONS. During the Period of
                  Restriction, Participants holding Shares of Restricted Stock
                  granted hereunder may be credited with regular cash dividends
                  paid with respect to the underlying Shares while they are so
                  held. Such dividends may be paid currently, accrued as
                  contingent cash obligations, or converted into additional
                  shares of Restricted Stock, upon such terms as the Committee
                  establishes. The Committee may apply any restrictions to the
                  dividends that the Committee deems appropriate. In the event
                  that any dividend constitutes a "derivative security" or an
                  "equity security" pursuant to Rule 16(a) under the Exchange
                  Act, such dividend shall be subject to a vesting period equal
                  to the remaining vesting period of the Shares of Restricted
                  Stock with respect to which the dividend is paid.

         g.       TERMINATION OF EMPLOYMENT. Upon a Participant's death,
                  Disability, or Retirement, all Restricted Shares shall vest
                  immediately. Each Restricted Stock Award Agreement shall set
                  forth the extent to which the Participant shall have the right
                  to retain unvested Restricted Shares following termination of
                  the Participant's employment with the Company in all other
                  circumstances. Such provisions shall be determined in the sole
                  discretion of the Committee, shall be included in the Award
                  Agreement entered into with each Participant, need not be
                  uniform among all Shares of Restricted Stock issued pursuant
                  to the Plan, and may reflect distinctions based on the reasons
                  for termination of employment.

8.       BENEFICIARY DESIGNATION.

         A Participant under the Plan may make written designation of a
beneficiary on forms prescribed by and filed with the Secretary of the Company.
Such beneficiary, or if no such designation of any beneficiary has been made,
the legal representative of such Participant or such other person entitled
thereto as determined by a court of competent jurisdiction, may exercise, in
accordance with and subject to the provisions of Section 6, any unterminated and
unexpired Option granted to such Participant to the same extent that the
Participant himself could have exercised such Option were he alive or able;
provided, however, that no Option granted under the Plan shall be exercisable
for more Shares than the Participant could have purchased thereunder on the date
his employment by, or other relationship with, the Company and its Subsidiaries
was terminated.

9.       RIGHTS OF ELIGIBLE PERSONS AND PARTICIPANTS.

         Nothing in this Plan or any Award Agreement shall be deemed to: prevent
the Company or an Affiliate from terminating the employment, consultancy or
director status of a Participant; prevent a Participant from terminating his or
her own employment, consultancy or director status; give any Participant a right
to be retained in employment or other service by the Company or any Affiliate
for any period of time; confer on any person any right to be selected as a
Participant.

                                       15

<PAGE>

10.      CHANGE IN CONTROL.

         a.       TREATMENT OF OUTSTANDING AWARDS. Upon the occurrence of a
                  Change in Control, unless otherwise specifically prohibited
                  under applicable laws, or by the rules and regulations of any
                  governing governmental agencies or national securities
                  exchanges:

                  i.       Any and all Options granted hereunder shall become
                           immediately exercisable, and shall remain exercisable
                           throughout their entire term; and

                  ii.      Any restriction periods and restrictions imposed on
                           Shares of Restricted Stock shall lapse; provided,
                           however, that the degree of vesting associated with
                           Restricted Stock which has been conditioned upon the
                           achievement of performance conditions pursuant to
                           Section 5(c) herein shall be determined in the manner
                           set forth in Section 7(d) herein.

         b.       TERMINATION, AMENDMENT, AND MODIFICATIONS OF CHANGE-IN-CONTROL
                  PROVISIONS. Notwithstanding any other provision of this Plan
                  or any Award Agreement provision, the provisions of this
                  Section 10 may not be terminated, amended, or modified on or
                  after the date of a Change in Control to affect adversely any
                  Award theretofore granted under the Plan without the prior
                  written consent of the Participant with respect to said
                  Participant's outstanding Awards.

11.      AMENDMENT, MODIFICATION, AND TERMINATION.

         a.       AMENDMENT, MODIFICATION, AND TERMINATION. Subject to Section
                  10(b) herein, the Board or the Committee may at any time and
                  from time to time, alter, amend, suspend or terminate the Plan
                  in whole or in part, except that, without approval of the
                  stockholders of the Company, no such revision or amendment
                  shall increase the number of shares available for grants of
                  ISOs under the Plan or alter the class of participants in the
                  Plan. Notwithstanding the foregoing, neither the Company nor
                  the Board or Committee on its behalf may cancel outstanding
                  Awards and issue substitute Awards in replacement thereof or
                  reduce the exercise price of any outstanding Options without
                  stockholder approval.

         b.       ADJUSTMENT OF AWARDS UPON THE OCCURRENCE OF CERTAIN UNUSUAL OR
                  NONRECURRING EVENTS. The Committee may make adjustments in the
                  terms and conditions of, and the criteria included in, Awards
                  in recognition of unusual or nonrecurring events (including,
                  without limitation, the events described in Section 4(b)
                  hereof) affecting the Company or the financial statements of
                  the Company or of changes in applicable laws, regulations, or

                                       16

<PAGE>

                  accounting principles, whenever the Committee determines that
                  such adjustments are appropriate in order to prevent dilution
                  or enlargement of the benefits or potential benefits intended
                  to be made available under the Plan.

         c.       AWARDS PREVIOUSLY GRANTED. No termination, amendment, or
                  modification of the Plan shall adversely affect in any
                  material way any Award previously granted under the Plan,
                  without the written consent of the Participant holding such
                  Award.

12.      WITHHOLDING.

         a.       TAX WITHHOLDING. The Company shall have the power and the
                  right to deduct or withhold, or require a Participant to remit
                  to the Company, an amount sufficient to satisfy federal,
                  state, and local taxes, domestic or foreign, required by law
                  or regulation to be withheld with respect to any taxable event
                  arising as a result of this Plan.

         b.       SHARE WITHHOLDING. To the extent provided by the Committee, a
                  Participant may elect to have any distribution to be made
                  under this Plan to be withheld or to surrender to the Company
                  shares of Common Stock already owned by the Participant to
                  fulfill any tax withholding obligation.

13.      SUCCESSORS.

         All obligations of the Company under the Plan with respect to Awards
granted hereunder shall be binding on any successor to the Company, whether the
existence of such successor is the result of a direct or indirect purchase of
all or substantially all of the business and/or assets of the Company, or a
merger, consolidation or otherwise.

14.      LEGAL CONSTRUCTION.

         a.       GENDER AND NUMBER. Except where otherwise indicated by the
                  context, any masculine term used herein also shall include the
                  feminine; the plural shall include the singular; and, the
                  singular shall include the plural.

         b.       SEVERABILITY. In the event any provision of the Plan shall be
                  held illegal or invalid for any reason, the illegality or
                  invalidity shall not affect the remaining parts of the Plan,
                  and the illegal or invalid provision shall be modified to the
                  extent necessary to be legal and valid and shall be enforced
                  as modified.

         c.       REQUIREMENTS OF LAW. The granting of Awards and the issuance
                  of Shares under the Plan shall be subject to all applicable
                  laws, rules, and regulations, and to

                                       17

<PAGE>

                  such approvals by any governmental agencies or national
                  securities exchanges as may be required.

         d.       SECURITIES LAW COMPLIANCE. With respect to Insiders,
                  transactions under this Plan are intended to comply with all
                  applicable conditions of Rule 16b-3 or its successors under
                  the Exchange Act. To the extent any provision of the Plan or
                  action by the Committee fails to so comply, it shall be deemed
                  null and void, to the extent permitted by law and deemed
                  advisable by the Committee.

         e.       GOVERNING LAW. To the extent not preempted by federal law, the
                  Plan, and all agreements hereunder, shall be construed in
                  accordance with and governed by the laws of the state of
                  Nevada.

15.      RIGHTS AS A SHAREHOLDER.

         No Participant to whom an Award has been granted shall have rights as a
shareholder with respect to any Shares covered by such Award, except after due
exercise of the Award and tender of the full purchase price for any Shares being
purchased pursuant to such exercise and registration of the Shares in the
Company's share register in the name of the Participant. Nothing in this Plan
shall affect a Participant's employment or other engagement by the Company,
including the Company's right to terminate such employment or engagement.

16.      PURCHASE FOR INVESTMENT.

         a.       Unless the offering and sale of the Shares to be issued upon
                  the particular exercise of an Option shall have been
                  effectively registered under the Securities Act of 1933 (the
                  "1933 Act"), the Company shall be under no obligation to issue
                  the Shares covered by such exercise unless and until the
                  person(s) who exercise such Option shall represent and warrant
                  to the Company, prior to the receipt of such Shares, that such
                  person(s) are acquiring such Shares for their own respective
                  accounts, for investment, and not with a view to, or for sale
                  in connection with, the distribution of any such Shares. The
                  person(s) acquiring such Shares shall be bound by the
                  provisions of the following legend which shall be endorsed
                  upon the certificate(s) evidencing their Shares issued
                  pursuant to such exercise or such grant:

                  "The shares evidenced by this certificate have not been
                  registered under the Securities Act of 1933, as amended, or
                  under state securities laws to the extent applicable. The
                  shares may not be sold, offered for sale, or otherwise
                  transferred in the absence of an effective registration
                  statement under said Act (and any registration or
                  qualification as may be required under such state laws) or an
                  opinion of counsel satisfactory to the company and its counsel
                  that such registration or qualification is not required."

                                       18

<PAGE>

         b.       The Company may delay issuance of the Shares until completion
                  of any action or obtaining of any consent which the Company
                  deems necessary under any applicable law (including, without
                  limitation, state securities or "blue sky" laws).

                                       19<PAGE>

                                                                    Exhibit 10.3

                              EMPLOYMENT AGREEMENT

         THIS EMPLOYMENT AGREEMENT ("AGREEMENT") is made effective as of the
17th day of May, 2000, by and between Photogen Technologies, Inc., a Nevada
corporation ("COMPANY"), and Taffy J. Williams, Ph.D. ("TJW").

                                    RECITALS

         A. TJW has experience as president and chief operating officer of a
public company in the biotechnology and pharmaceutical field and other
experience relevant to acting as the chief executive officer of the Company;
and

         B. The Company desires to employ TJW as President and Chief
Executive Officer of the Company and TJW agrees to serve in that capacity
subject to the terms of this Agreement.

                                    AGREEMENT

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

         1.       DEFINITIONS.  The following terms have the meanings set
forth below:

                  (a) "COMPETITIVE BUSINESS" means engaging in the
management, research, development, sale, lease, marketing, financing or
distribution of technology, products or services competitive with the
Company's products or services in the Field anywhere in the world.

                  (b) "CONFIDENTIAL INFORMATION" means, subject to 1(b)(ii)
below, any and all non-public information that has or could have value or
utility to the Company or any of its affiliates, whether or not reduced to
written or other tangible form and all copies thereof, relating to the
Company's or its affiliates' private or proprietary matters, confidential
matters or trade secrets (including information developed by or at the
direction of TJW). For purposes of illustration, Confidential Information may
be contained in various media, including, without limitation, records of
research data and observations, records and results of preclinical and
clinical trials, patent applications, regulatory filings, computer programs,
manuals, plans, drawings, designs, specifications, supply and customer lists,
internal financial data and other documents and records of the Company or its
affiliates, whether or not labeled or identified as "Confidential."

                  (i) Confidential Information includes, but is not limited to,
         the following: (A) the Company's Technical Information; (B) except to
         the extent publicly disclosed without any fault directly or indirectly
         of TJW, information relating to the Company's Patents; (C) business
         information, such as information concerning any products,

                                       -1-

<PAGE>

         customers, suppliers, production, developments, costs, purchasing,
         pricing, profits, markets, sales, accounts, customers, financing,
         acquisitions, strategic alliances or collaborations, expansions; and
         (D) other information relating to the Company's or any of its
         affiliates' business practices, strategies or policies.

                  (ii) Confidential Information does not include information
         that is or becomes generally known to the public or in the industry
         without any fault directly or indirectly of TJW, or information in
         which the Company ceases to have a legally protectable interest.

                  (c) "DEVELOPMENTS" means any and all Patents and Technical
Information that during the Term of this Agreement and for twelve (12) months
after termination (regardless of the reason for termination), TJW conceives,
reduces to practice, discovers or makes, alone or with others (i) by use of
the Company's equipment, facilities, Confidential Information, Technical
Information, Research Materials or other intellectual property, through a
research project sponsored or funded by the Company or otherwise; or (ii)
which are directly or indirectly related to or result from TJW Duties.

                  (d) "FIELD" means the use of electromagnetic energy
(including light generated by ultra fast lasers or other sources, x-rays and
other sources of radiation), alone or in combination with photoactive
compounds or targeting agents, to treat, diagnose or image human or animal
tissue and/or disease.

                  (e) "PATENTS" means patents, patent applications, and
patent disclosures, together with all reissuances, continuations,
continuations-in-part, revisions, extensions, and reexaminations thereof.

                  (f) "RESEARCH MATERIALS" means and includes, without
limitation, photoactive compounds, targeting agents, lasers, proprietary
software and other materials provided to or used by any of the Company's
employees, agents or consultants.

                  (g) "TECHNICAL INFORMATION" means technical information or
other intellectual property (whether or not subject to patent or other
registration with any governmental office), including research and
development, methods, trade secrets, know-how, formulas, compositions,
protocols, processes and techniques, discoveries, machines, inventions,
ideas, computer programs (including software and data used in all such
programs), drawings, and specifications, including information relating to
Patents.

         2.       TJW DUTIES.

                  (a) During the Term of this Agreement, TJW shall use his
best efforts and devote his full working time and attention to competently
and faithfully promote the Company's best interests, develop the Company's
products and perform all duties of a chief executive officer, and he shall
accept all reasonable responsibilities incidental to such position, and he
shall

                                       -2-
<PAGE>

perform such other reasonable duties as may be set forth in the Bylaws for
the chief executive officer or assigned to him by the Board of Directors of
the Company, to which he shall report regularly ("TJW DUTIES").

                  (b) TJW may perform the TJW Duties from his home base in
the Philadelphia area, provided that TJW shall travel from time to the
Company's Boston, Massachusetts and Knoxville, Tennessee offices and
elsewhere as may be necessary to properly and fully perform his duties.

                  (c) The Company will recommend TJW's election to the Board
of Directors and appointment as President of the Company as soon as
practicable after the effectiveness of this Agreement.

         3.       COMPENSATION.

                  (a) Company shall pay TJW an annual base salary of
$265,000.00, payable in monthly installments of $22,083.33, in accordance
with normal Company payroll procedures and subject to deductions and
withholdings required by law or by agreement with TJW ("BASE SALARY"). The
Base Salary shall be reviewed annually by the Board of Directors or an
appropriate committee of the Board for increase based on performance in the
sole discretion of the Board of Directors or an appropriate committee of the
Board; provided, however, that the Base Salary shall be increased on each
annual anniversary date of this Agreement to reflect any increase in the
Consumer Price Index published by the United States Department of Labor for
the Philadelphia area for the previous year. The Base Salary shall not be
lowered from the previous year during the Term. Company will reimburse TJW
for reasonable and necessary business expenses in accordance with the
Company's policies.

                  (b) The Board of Directors or an appropriate committee of
the Board shall review TJW's performance each year for purposes of paying a
bonus, which determination shall be in the sole discretion of the Board of
Directors or an appropriate committee; provided, however, that a bonus shall
be payable at the first anniversary of this Agreement for the prior year's
service in the amount of at least $66,250.00.

                  (c) Concurrently with the execution of this Agreement,
Company and TJW will execute an Incentive Stock Option Award Agreement
("Award Agreement") providing for the Company to grant TJW a total of
3,000,000 options to acquire Company common stock, pursuant to Company's
Senior Executive Long Term Incentive Compensation Plan. The options will vest
in accordance with and in all other respects be subject to the provisions of
the Award Agreement and the Plan, copies of which are attached as Exhibits A
and B hereto.

                  (d) TJW will be eligible to participate in and receive
benefits provided under Company's insurance and benefit plans as set forth on
Exhibit C, in accordance with their respective provisions; provided, however,
that subject to a reasonable premium, TJW shall be

                                       -3-

<PAGE>

provided term insurance by the Company at its cost on his life equal to two
times his salary on the effective date and each anniversary thereof during the
Term.

                  (e) The following terms are defined for purposes of this
paragraph:

                  (i) "Business Combination" means a transaction described in
         Sections 2(g)(i) or 2(g)(iii) of the Senior Executive Long Term
         Incentive Compensation Plan, including clauses A, B and C of Section
         2(g)(iii).

                  (ii) "Option Value" means the spread between the option
         exercise price per share and the fair market value per share of the
         Company's Common Stock subject to options pursuant to TJW's Award
         Agreement as of the date of the closing of a Business Combination,
         multiplied by the number of shares subject to vested options pursuant
         to the Award Agreement.

                  If the Company engages in a Business Combination approved
by the Board of Directors during the Term or within 24 months after the
termination of the Term, the Company will pay TJW a "Special Bonus" equal to
0.7% of the aggregate consideration paid by the buyer if any Business
Combination closes during the first year of the Agreement, 1.4% of such
consideration if the Business Combination closes during the second year of
the Agreement, or 2.1% of such consideration if the Business Combination
closes during the third or subsequent year of the Agreement or within 24
months after the termination of the Term; provided, however, that the amount
of the Special Bonus shall not exceed $10,000,000 and the Special Bonus shall
be reduced dollar for dollar by the Option Value. Notwithstanding anything to
the contrary, under no circumstances will any Special Bonus be due or payable
if the Option Value equals or exceeds $10,000,000 as of the closing of the
Business Combination. The Special Bonus will be payable to TJW in cash in a
lump sum by the end of the day of the closing of a Business Combination
pursuant to the terms and conditions of this paragraph. The fair market value
of Common Stock subject to TJW's Award Agreement and the value of any
non-cash consideration received in a Business Combination shall be determined
by the Company's Board of Directors in good faith based upon the opinion or
advice of independent outside experts. TJW shall not be entitled to vote as a
director (but he may participate in Board meetings and may be counted towards
a quorum) in connection with any Business Combination pursuant to which he
would receive a Special Bonus.

         4. COVENANTS AND REPRESENTATIONS. TJW represents and warrants to, and
covenants with, the Company as follows:

                  (a) During the Term, TJW will render his services only to the
Company and will not without the written consent of the Board of Directors enter
into any other agreement, arrangement, understanding, or other relationship
pursuant to which TJW is obligated to render advice and services or to devote
his time and attention during working hours to any third party.

                                       -4-

<PAGE>

                  (b) TJW is under no contractual or other obligation or
restriction which is inconsistent with TJW's obligations under this Agreement
or the performance of the TJW Services. TJW's pre-existing relationships with
governmental, commercial, educational or other institutions are listed in
Exhibit D. TJW has terminated all employment, consulting and similar
affiliations and relationships with the persons or entities listed on Exhibit
D.

                  (c) Except as described in Exhibit E hereto, the
performance of the TJW Duties does not and will not breach any agreement
which obligates TJW to keep in confidence any confidential or proprietary
information of any third party or to refrain from competing, directly or
indirectly, with the business of any third party. TJW shall not disclose to
Company or use in providing TJW Duties hereunder any confidential or
proprietary information of any third party. All Developments of TJW will be
free and clear of any valid claim or encumbrance by any third party. TJW owns
no items of intellectual property in the Field that are not subject to
paragraph 5, below

                  (d) In performing the TJW Duties, TJW shall comply with all
legal and regulatory requirements established by the Securities and Exchange
Commission, Food & Drug Administration and all other applicable governmental
authorities.

         5.       OWNERSHIP OF DEVELOPMENTS

                  (a) TJW hereby assigns and transfers to the Company all of
TJW's right, title and interest in and to all Developments for the Company's
ownership and use without restriction or additional compensation. TJW agrees
to sign and deliver to the Company (during and after the Term) other
documents the Company considers necessary or desirable to evidence its
ownership of Developments. All copyrightable works that are Developments,
whether or not works made for hire (as defined in 17 U.S.C. Section 101),
shall be owned by the Company and it may file and own the same as the author
throughout the world. If the Company is unable after reasonable efforts to
secure TJW's signature on any document necessary or desirable to apply for,
prosecute, obtain, or enforce any patent, trademark, service mark, copyright,
or other right or protection relating to any Development, TJW hereby
irrevocably designates and appoints the Company and each of its duly
authorized officers and agents, as TJW's agent and attorney-in-fact to act
for and in TJW's behalf, name and stead to execute and file any such document
and to do all other lawfully permitted acts to further the prosecution,
issuance, and enforcement of patents, trademarks, service marks, copyrights,
or other rights or protections with the same force and effect as if
personally executed and delivered by TJW. TJW agrees that this power of
attorney is irrevocable and is coupled with an interest and thereby survives
TJW's death or disability.

                  (b) TJW shall keep and maintain complete written records of
all Developments and Technical Information done or carried out by TJW. TJW
agrees to promptly and fully disclose in writing to the Company's Board of
Directors, all Developments and Technical Information. These records shall be
works made for hire, and shall remain the exclusive property of Company. TJW
may keep one copy of these records in TJW's files during

                                       -5-

<PAGE>

the Term of this Agreement solely for reference purposes; however, all
originals of such records shall be turned over to the Company promptly and
regularly and no less frequently than monthly.

         6.       CONFIDENTIALITY.

                  (a) The Company has developed and will develop Confidential
Information over a substantial period of time and at substantial expense. The
Confidential Information is of great importance to the Company's business.
During the Term, TJW may develop, become aware of, or have access to the
Confidential Information. TJW acknowledges the Company is and shall at all
times remain the sole owner of the Confidential Information.

                  (b) During the Term and at all times thereafter, TJW will
hold in trust, keep confidential and not disclose, directly or indirectly, to
any third parties or make any use of Confidential Information for any purpose
except for the benefit of the Company in the performance of the TJW Duties,
and then only in a manner consistent with the Company's instructions. Upon
termination of the Term (regardless of the reason for termination), TJW will
immediately return to the Company all tangible Confidential Information and
any other material made or derived from Confidential Information, including
information stored in electronic format and handwritten notes, which are in
TJW's possession or control or which TJW delivered to others. TJW may
disclose the Confidential Information if required by law to do so or by
subpoena or other order of a court of competent jurisdiction, provided that
in either case, reasonable advance notice is given to the Company before any
such disclosure is made and TJW cooperates with the Company to obtain
confidential protection.

                  (c) During the Term and thereafter, TJW shall exercise all
commercially reasonable precautions to physically protect the integrity and
confidentiality of the Confidential Information. Except to the extent
necessary to perform his duties, TJW will not remove any Confidential
Information or copies thereof from the Company's premises or the other places
TJW is authorized to perform the TJW Duties.

                  (d) TJW will comply with Company's policies concerning
publication with respect to his work for the Company.

         7. NONCOMPETITION; NONSOLICITATION. During the Term, and for 24
months after termination of the Term (regardless of the reason for
termination), TJW agrees not to, directly or indirectly, (i) own (except as
owner of 2% or less of stock of a publicly registered and traded entity),
manage, control, participate in, consult with, be employed by, render
services for, any person or entity engaged in a Competitive Business or in
any manner or in any capacity engage in any Competitive Business, (ii)
solicit, induce or attempt to influence any other person or entity to engage
in any Competitive Business or to curtail or cease any business or employment
relationship with the Company, its affiliates, employees or independent
contractors, or (iii) disparage the Company, its affiliates, employees,
independent contractors or its or their services or products.

                                       -6-

<PAGE>

         8.       TERM AND TERMINATION.

                  (a) Unless terminated earlier pursuant to paragraph 8(b)
below, this Agreement shall be in effect for an initial term of three years
beginning on the effective date hereof (the "INITIAL TERM"). This Agreement
may be renewed for successive renewal terms of one year (the "RENEWAL TERMS")
upon the mutual written agreement of the parties prior to the beginning of
any Renewal Term; provided, however, if the Company declines to renew and TJW
desires to renew on substantially identical terms, TJW shall be provided one
year's severance; further, provided, that if the Company desires to renew on
substantially identical terms and TJW does not, no severance shall be
provided to TJW. The Initial Term and any Subsequent Renewal Terms are
collectively referred to as the "TERM."

                  (b) This Agreement and TJW's employment by the Company may
be terminated before the expiration of any Term as follows:

                  (i) By the Company in the following events (terminations under
         (1) and (2) below are deemed "for cause"):

                           (1)      TJW commits a material breach of this
                                    Agreement where such breach, if curable, is
                                    not remedied to the Company's reasonable
                                    satisfaction within thirty (30) days after
                                    written notice to TJW (and termination shall
                                    be effective as of the end of such 30-day
                                    period); or

                           (2)      TJW is convicted (or pleads guilty or no
                                    contest) for committing an act of fraud,
                                    embezzlement, theft or another act
                                    constituting a felony or moral turpitude
                                    (and termination shall be effective upon
                                    written notice to TJW); or

                           (3)      TJW dies or becomes mentally or physically
                                    disabled such that TJW cannot, in the
                                    opinion of an independent physician selected
                                    by the Company, perform his duties (with
                                    reasonable accommodation to the extent
                                    required by law) for a period of the next 12
                                    consecutive months (and termination shall be
                                    effective on the date TJW dies or 30 days
                                    after the Company gives written notice that
                                    the Company has determined he is disabled
                                    under the foregoing criteria);

                           in which case: (A) the Company shall pay TJW his Base
                           Salary and any other amounts required by applicable
                           law to be paid through the effective date of
                           termination but the Company shall have no other
                           obligations under this Agreement as of the effective
                           date of the termination, and (B) the

                                       -7-

<PAGE>

                           Company shall permit TJW or his beneficiary to
                           exercise vested options to acquire Company stock in
                           accordance with and subject to the Award
                           Agreement.

                  (ii) By TJW, provided TJW shall give the Company at least
         ninety (90) days prior written notice thereof (and termination shall be
         effective as of the end of such 90-day or longer period); in which case
         (A) the Company shall pay TJW his Base Salary and any other amounts
         required by applicable law to be paid through the effective date of
         termination but the Company shall have no other obligations under this
         Agreement as of the effective date of the termination, and (B) the
         Company shall permit TJW to exercise vested options to acquire Company
         stock in accordance with and subject to the Award Agreement.

                  (iii) By the Company at any time and for any reason other than
         as set forth in paragraphs 8(b)(i)(1), 8(b)(i)(2) or 8(b)(i)(3), in
         which case the Company shall pay TJW a severance payment equal to his
         then current Base Salary if so terminated in his first year of
         employment: 1.5 times his then current Base Salary if so terminated in
         his second year of employment; and 2 times his then current Base Salary
         if so terminated in his third year of employment and thereafter.
         Further, all granted options shall vest and be available for exercise
         during the remaining life of the options. A significant reduction in
         TJW Duties or his reporting responsibilities to the Board of Directors
         shall be deemed a termination for reasons other than as set forth in
         paragraphs 8(b)(i)(1), 8(b)(i)(2) or 8(b)(i)(3).

                  (c) Notwithstanding anything to the contrary, the
obligations under this Agreement which by their terms survive termination,
including, without limitation, the applicable Developments, Confidentiality,
Noncompetition, and Nonsolicitation provisions of this Agreement as set forth
in paragraphs 5, 6 and 7 hereof, shall survive termination; and the
representations and warranties, including without limitation the provisions
of paragraph 4 hereof, shall survive termination. Upon termination, TJW shall
return immediately to the Company all property belonging to the Company.

         9.       MISCELLANEOUS.

                  (a) This Agreement and the rights and obligations hereunder
may not be assigned, delegated or transferred by TJW without the prior
written consent of the Company. The Company may assign this Agreement to an
affiliate of the Company or to an acquirer or successor in connection with
the merger, consolidation, or sale of all or substantially all of its assets
or business, and this Agreement shall inure to the benefit of the Company's
assignee; provided, however, that the Company shall continue to be obligated
hereunder.

                  (b) This Agreement may not be amended or modified, or any
provision hereof waived, except by a written instrument duly signed by both
parties contemporaneously or after the date of this Agreement. This Agreement
(together with its exhibits) constitutes the entire

                                       -8-

<PAGE>

agreement between the parties concerning the subject matter hereof and
thereof, and supersedes all prior written or oral negotiations,
representations and agreements concerning such subject matter which prior
matters shall not be binding on the parties.

                  (c) TJW acknowledges that a breach of paragraphs 5, 6 or 7
would cause the Company and its affiliates irreparable harm. Accordingly, in
the event of a breach or threatened breach by TJW of any of the provisions of
paragraphs 5, 6 or 7, TJW agrees that the Company shall be entitled to seek
injunctive relief restraining TJW and any individual or entity from
participating in such breach or threatened breach or an order compelling
compliance with this Agreement. Nothing herein shall be construed as
prohibiting the Company from pursuing any other remedies available at law or
in equity for any breach or threatened breach of this Agreement.

                  (d) Any waiver of a breach of any provision of this
Agreement shall not operate as a waiver of any other breach of such provision
or any other provision, nor shall any failure to enforce any provision hereof
operate as a waiver of such provision or of any other provision.

                  (e) If any provision of this Agreement is deemed in a final
order by a court of competent jurisdiction to be unenforceable or invalid,
the enforceability and validity of all other provisions shall not be affected
and that court shall modify the unenforceable or invalid provision to the
extent necessary to render it enforceable and valid and that provision shall
be enforced as modified. TJW agrees that the time period and scope of the
covenants in paragraphs 5, 6 and 7 of this Agreement are reasonable and
appropriate under the circumstances of the Company's business and TJW's
executive-level position with the Company.

                                       -9-

<PAGE>

         IN WITNESS WHEREOF, TJW and the President of the Company have signed
this Agreement as of the Effective Date.

                                      -10-
<PAGE>

<TABLE>
<CAPTION>

COMPANY                                                      TJW
<S>                                                          <C>
Photogen Technologies, Inc.

By:   /s/ Timothy C. Scott                                   By:   /s/ Taffy J. Williams
      ----------------------------------------                     ------------------------------
          Timothy C. Scott, Ph.D., President                           Taffy J. Williams, Ph.D.

Address:     7327 Oak Ridge Highway                          Address:
             Suite B                                                  --------------------------------
             Knoxville, TN  37931                                     --------------------------------
             Telephone:    423/769-4011
             Telecopier:   423/769-4013                               Telephone:
             E-mail:       scott@photogen.com                                   ----------------------
                                                                      Telecopier:
                                                                                 ---------------------
                                                                      E-mail:
                                                                             -------------------------

</TABLE>

                                      -11-
<PAGE>

                                    EXHIBITS

A            Award Agreement
B            Senior Executive Long Term Incentive Compensation Plan
C            Benefits
D            TJW's Preexisting Relationships
E            Exceptions to TJW's Duties

                                      -12-

<PAGE>

                                                                       EXHIBIT C

                  Photogen Technologies, Inc. and Subsidiaries
                            Employee Benefit Programs

As of April 30, 2000, employee benefits offered are:

(1)          Participation in the company sponsored 401(k) plan. There is no
             company matching. The plan is with Transamerica Asset Management
             and employees may begin participating immediately upon employment.
             Employee salary reductions are limited to the lessor of 15% of
             compensation (by the plan) and $10,500 annually (by law).

(2)          Coverage by company paid group medical coverage. This coverage is
             currently with Principal Mutual Insurance, but the company is
             constantly reviewing and comparing coverage with other plans.
             Current coverage includes not only medical coverage but also dental
             and life insurance of $25,000.

(3)          Paid vacation for 4 weeks.

<PAGE>

<TABLE>
<CAPTION>
                                                                      EXHIBIT D

                        TJW'S PRE-EXISTING RELATIONSHIPS
<S>          <C>                                                      <C>
1.           Naval Medical Research Institute                         Employee
2.           Magainin Pharmaceutical Company                          Employee
3.           Panax/InKine Pharmaceutical Company                      Employee
4.           Demegen                                                  Consultant
</TABLE>

<PAGE>

                                                                       EXHIBIT E

                    EXCEPTIONS TO PERFORMANCE OF TJW'S DUTIES

1.       Through 2003, TJW is subject to a contractual obligation not to solicit
         employees from some or all of the following entities:

         Naval Medical Research Institute, Magainin Pharmaceutical Company,
         Panax/InKine Pharmaceutical Company, Demegen

2.       TJW is subject to confidentiality agreements with InKine Pharmaceutical
         Company and Demegen.

3.       Through 2003, TJW is subject to non-competition restrictions in some or
         all of the following areas:

         Purgatives and Laxatives; certain inflammatory mediators as they relate
         to Inflammatory Bowel Disease; Idiopathic Thrombocytapenia (ITP);
         Thrombospondin Technology; certain peptide antibiotics

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