Document:

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                                                                  EXHIBIT 10.10

                            PRODUCT SUPPLY AGREEMENT

         This Agreement, dated as of December 7, 1999, is by and among CTI, Inc.
a Tennessee corporation with its principal offices 810 Innovation Drive,
Knoxville, TN 37932 ("CTI", which term shall include all of CTI's subsidiaries
and affiliates, whether now existing or hereafter formed or acquired, including
but not limited to P.E.T. Net Pharmaceutical Services, Inc. ("PETNET")); PETNET;
and Cambridge Isotope Laboratories, Inc. ("CIL"), a Delaware corporation with
its principal offices at 50 Frontage Road, Andover, Massachusetts 01810
(collectively, the "Parties").

                                   WITNESSETH:

         WHEREAS, CTI is in the business of developing, manufacturing and
distributing positron imaging instrumentation and radiopharmaceuticals and
related services for the healthcare industry, which require enriched 0-18 water
(the "Product", which term, unless the context requires otherwise, shall include
New Product and Recovery Water, as each is defined herein) to perform their
function; and

         WHEREAS, CTI wishes to assure an adequate supply of the Product
manufactured to certain specifications; and

         WHEREAS, CIL is willing, on the terms and conditions of this Agreement,
to manufacture, package and supply to CTI certain quantities of the Product
which meets certain specifications; and

         WHEREAS, CTI is willing, on the terms and conditions of this Agreement,
to purchase such quantities of the Product from CIL; and

         NOW, THEREFORE, CTI, PETNET and CIL hereby agree as follows:

         1. Term of Agreement. The term of this Agreement shall begin as of the
date it is signed and shall remain in effect through December 31, 2002
(the "Initial Term"), subject to termination or expiration in accordance with
Section 15.

         2. Manufacture, Sale and Purchase of Products. The Product shall
include Product that meets the specifications of Exhibit A and which is newly
manufactured by CIL ("New Product") and Product that meets the specifications of
Exhibit A and which is produced by CIL from Used Product (as defined below)
originally purchased from CIL and returned to CIL after use in Positron Emission
Tomography as described in Section 2.2 ("Recovery Water").

         2.1 Minimum Purchases of New Product. CIL shall manufacture and deliver
to CTI, and CTI shall purchase, accept and pay for, (a) * kg (* kilograms) of
New Product during the period from October 1, 1999 through December 31, 2000;
(b) * kg (* kilograms) of New Product during the year ending December 31, 2001;
and (c) * kg (* kilograms) of New Product during the year ending December 31,
2002. Unless agreed to in purchase orders placed by CTI and accepted by CIL, CIL
shall ship New Product to CTI on approximately a monthly basis such that 25%
(twenty-five percent) of the annual quantity described above would be shipped to
CTI during each calendar quarter on or before the last day of each calendar
quarter commencing with the quarter ending December 31, 2000.

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

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         2.2 Purchase Guarantee.

         (a) In addition to the minimum purchase requirements set forth in
Section 2.1 hereof, CTI agrees to purchase, in each calendar year during the
Initial Term and any Renewal Term, not less than * of its New Product
requirements from CIL. With respect to purchases of New Product in excess of the
amounts described in Section 2.1 hereof, CTI shall submit purchase orders to CIL
specifying the quantity of New Product CTI wishes to purchase and the delivery
date thereof. CIL shall, in writing, accept or reject such purchase order within
ten (10) days of its receipt of such order. If CIL does not accept such Purchase
Order, CTI shall be free to purchase the amounts set forth therein from a to
such third party on delivery terms no more favorable to such third party than
those set forth in the Purchase Order submitted to CIL. CTI will provide CIL a
statement, signed by the Chief Financial Officer of CTI, no later than January
31 of each year certifying that CTI has purchased no less than * of New Product
purchased by CTI from all sources during the preceding calendar year from CIL.
CIL has the right to audit the books and records of CTI directly related to its
purchase of New Product from all sources to verify the certification.

         (b) During this Agreement, on or before January 31 of each calendar
year, CIL shall give written notice to CTI, signed by the Chief Financial
Officer of CIL, of CIL's good faith estimate of its production capacity for New
Product from its Xenia, Ohio manufacturing facility existing on the date of this
Agreement (the "Estimated Annual Capacity"). Unless mutually agreed upon by the
parties, future expansion of this facility, if any, shall not be considered in
the preparation of such estimate. CTI shall have the option to purchase * of the
Estimated Annual Capacity set forth in such notice to the extent that such
amount exceeds the minimum purchase requirements set forth in Section 2.1
hereof. In order to exercise this option, CTI must place a written purchase
order for such amount on or before April 30 of the applicable calendar year. CIL
shall deliver such order on or before December 31 of such year.

         2.3 Recovery Water.

         (a) In addition to manufacturing and selling New Product to CTI, CIL
shall produce Recovery Water, which involves the re-enrichment of Used Product
to meet the specifications set forth in Exhibit A annexed herein. "Used Product"
is water that has been depleted in 0-18 levels below 95% enrichment. Used
Product may have elevated levels of minerals and organics relative to New
Product weight.

         (b) CTI agrees to use its blest efforts to return all of its Used
Product originally purchased from CIL to CIL for reprocessing into Recovery
Water hereunder, at no cost to CIL, commencing upon CIL's written notice to CTI
that it is prepared to begin reprocessing Used Product. CTI agreed that the
enrichment of Used Product returned to CIL will normally be 85% of 0-18 or
higher, but in no case will be less than 80% 0-18. CTI agrees that the Used
Product will not contain radioactive substances at levels that would require CIL
to obtain a license for shipping or handling as radioactive material.

         (c) CTI acknowledges that CIL is not currently producing Recovery
Water; that shipments of Recovery Water are not expected to be available for
shipment to CTI until approximately nine months following the delivery of Used
Product to CIL by CTI; and that the quantity of Recovery Water to be produced by
CIL for sale to CTI pursuant to this Agreement.

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

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will depend, in part, upon the quantity and enrichment of the Used Product
received by CIL from CTI.

         (d) CTI agrees to accept delivery, purchase and pay for all Recovery
Water produced by CIL using the Used Product returned to CIL by CTI pursuant to
Section 2.3(b) hereof.

         2.4 Price.

         (a) The price of the Product per one gram shall be $*. All prices are
F.O.B. CIL's facilities in Andover, Massachusetts or Xenia, Ohio, and CTI shall
pay all freight, insurance and taxes with respect to the sale and purchase of
the Product.

         (b) CTI shall be entitled to a credit of $* per gram for each gram of
0-18 water contained in the Used Product returned to CIL by CTI pursuant to
Section 2.3(b) hereof. By way of example only, if CTI returns * of Used Product
with an enrichment of 80% to CIL, this amount would equal * of 0-18 water, and
CTI would be entitled to a credit of $*. Due to the length of time necessary to
produce Recovery Water from Used Product and in consideration of CIL's efforts
to produce such Recovery Water, any credit earned by CTI pursuant to this
Section 2.4(b) for Used Product returned to CIL from the date of this Agreement
through December 31, 2000 may be applied to CTI only against invoices for
Product which is shipped to CTI on or after January 1, 2001.

         2.5 Title and Risk of Loss. Title shall pass from CIL to CTI upon
delivery from CIL to a common carrier at CIL's facilities in Andover,
Massachusetts or Xenia, Ohio. Any risk arising from the loss or destruction of
the Product or any change in the quality of the Product or any other occurrence
with respect to the Product at the time of or prior to the delivery of the
Product to such carrier shall be borne by CIL, except where the occurrence is
due to a cause for which CTI is liable, and any such risk from any occurrence
after the delivery of the Product to such carrier by CIL shall be borne by CTI,
except where the occurrence is due to a cause for which CIL is liable.

         2.6 Specifications. The Product shall meet the specifications set forth
on and be packaged in accordance with Exhibit A annexed hereto.

         2.7 Ownership of Names and Marks. Each Party acknowledges validity and
exclusive ownership and right to use, to grant permission to use and to control
its respective name and neither Party will acquire any right of any nature in or
to the other Party's name.

         3. Guarantee. CTI hereby agrees to unconditionally guaranty the
obligations and duties of CTI and each other subsidiary or affiliate of CTI that
purchases Product from CIL pursuant to this Agreement. CTI acknowledges and
agrees CTI will receive a substantial benefit from CIL's entering into this
Agreement, and that it is willing and authorized to enter into this guarantee in
order to induce CIL to enter into this Agreement.

         4. Terms of Payment. CIL's invoices for Products shall become due and
payable thirty (30) days after delivery, subject to adjustment for defective or
non-conforming Product in accordance with Section 6.

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

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         5. Warranty of CIL.

         (a) CIL warranties that it will perform all of its obligations under
this Agreement in accordance with this Agreement and with all applicable laws
and regulations relating to CIL's manufacture, sale, labeling, advertising, and
distribution of the Product.

         (b) CIL warrants that all the Product provided to CTI will, on the date
of shipment and for 90 days thereafter, meet the specifications identified in
Exhibit A to this Agreement and will comply with all applicable laws and
regulations. During the 90 days after delivery, CTI agrees to store all Product
in a secure, controlled environment free from excess heat, humidity or physical
shock.

         (c) THE WARRANTIES SET FORTH IN THIS SECTION 5 ARE EXCLUSIVE AND ARE
GIVEN IN LIEU OF ANY AND ALL OTHER WARRANTIES, EXPRESS OR IMPLIED, ARISING BY
OPERATION OF LAW OR OTHERWISE. CIL SPECIFICALLY DISCLAIMS ANY OTHER INCLUDING,
WITHOUT LIMITATION, ANY WARRANTIES OR MERCHANTABILITY AND/OR FITNESS FOR A
PARTICULAR PURPOSE. EXCEPT AS SET FORTH IN SECTION 12 HEREOF, CTI'S SOLE REMEDY
FOR CIL'S BREACH OF THESE WARRANTIES SHALL BE FOR MONEY DAMAGES WHICH SHALL IN
NO EVENT EXCEED THE PRICE FOR THE LOT OF PRODUCTS AS TO WHICH THE BEACH IS
CLAIMED.

         (d) IN NO EVENT CIL SHALL BE LIABLE FOR ANY SPECIAL, INDIRECT OR
CONSEQUENTIAL DAMAGES OF ANY NATURE, INCLUDING WITHOUT LIMITATION, LOST PROFITS,
EVEN IF ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.

         6. Defective or Nonconforming Products. If the Product provided by CIL
meets the specifications as defined in Exhibit A, it will be accepted and paid
for as described in Section 4. If CTI finds that any Product specifications are
not met, then CTI shall promptly notify CIL of the problem and provide CIL with
its test data and results. CTI agrees to provide CIL written notification of any
nonconformity within 90 days of receipt of the Product. In the event CIL has not
received a notice from CTI within 90 days of CTI's receipt of the Product, the
Product shall be deemed to be accepted by CTI. CIL will, at its own cost,
promptly retest the batch of Product which is claimed by CTI to be
nonconforming, as appropriate, and supply its test results to CTI. If this
re-test shows that the Product does not meet specifications, then CIL will
replace that nonconforming Product, provided, however, that all nonconforming
Product is returned to CIL at CIL's cost and expense in its origin containers.

         7. Warranty of CTI. CTI represents and warrants to CIL that all use of
the Product in applications involving humans by CTI, and its affiliates,
licensees and customers, shall comply in all respects with all applicable laws
and regulations, and that such compliance is the sole responsibility of CTI or
its affiliates to the extent that CTI has control over such use, and shall be at
the sole expense of CTI. In no event shall CIL have any responsibility, or bear
any expense in connection with such compliance.

         8. Inspection Rights. Upon reasonable prior notice during normal
business hours, CTI shall have access to CIL's facilities in order to review,
with respect to CIL's manufacture of the Product, CIL's adherence to quality
standards, CGMP requirements, Product specifications applicable to the Product
and applicable laws and regulations.

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         9. Force Majeure. Each Party's obligations (other than payment
obligations) under this Agreement and under any purchase order or invoice
submitted by either Party to the other hereunder shall be excused and suspended
during the existence of any event of force majeure, which shall consist of a
strike, work stoppage or other labor dispute or a war, riot, fire, flood, storm
or other Act of God beyond the control of such Party, or which may consist of a
governmental or governmental agency order of general or geographic area-wide
application that is not directed solely at such Party, but only to the extent
that such event is responsible for such Party's non-performance of any such
obligation. Neither Party shall be responsible or liable for any loss, damage,
injury, cost or expense suffered, incurred or sustained by the other Party by
reason of such nonperformance due to force-majeure, and provided that, in the
event of either Party's nonperformance due to a strike, work stoppage, or labor
dispute, such Party shall make its reasonable commercial efforts to recover or
restore any loss production or other effect of such noncompliance.

         10. Mutual Representations. Each Party hereby represents and warrants
to the other: that it has full corporate power and authority and is duly
authorized under applicable law, its certificate of incorporation and its
by-laws, to own its properties and to conduct its business as presently
conducted and as herein contemplated, and to enter into and perform this
Agreement in accordance with the terms hereof; and that neither such entering
into nor such performance violates or will violate such certificate of
incorporation or by-laws or any loan agreement, lease agreement, indenture or
other instrument, or any federal, state or local law, regulation or ordinance
applicable to such Party or by which it is bound.

         11. Government Proceedings. Each Party hereby warrants and represents
that it knows of no pending or threatened governmental actions (judicial,
regulatory or otherwise) that would or might prevent or materially interfere
with its performance of this Agreement, and each Party hereby covenants and
agrees promptly to notify the other in writing of the taking or threat of any
such action.

         12. CIL Indemnity. CIL shall defend, indemnify and hold harmless CTI,
its officers, directors, employees, agents, subsidiaries, successors and assigns
from and against any and all costs, expenses, damages, judgment, liabilities,
cost and expenses (including reasonable attorney's fees) arising from a claim or
lawsuit resulting from any breach by CIL of its warranties under Section 5(a)
hereof, without regard to the limitations set forth in Section 5(c) hereof. CTI
shall give CIL prompt written notice of such claim or lawsuit and shall permit
CIL to undertake the defense thereof at CIL's expense. CTI shall cooperate in
such defense, to the extent reasonably requested by CIL, at CIL's expense. If
CIL accepts the defense, CTI shall have the right to participate in such
defense, at its own expense, to the extent that in its judgment CTI may be
prejudiced thereby. In any claim made or suit brought for which CTI seeks
indemnification under this section, CTI shall not settle, offer to settle or
admit liability or damages without the prior written consent of CIL, such
consent not being unreasonably withheld.

         13. CTI Indemnity. CTI shall defend, indemnify and hold harmless CIL,
its officers, directors, employees, agents, subsidiaries, successors and assigns
from and against any and all costs, expenses, damages, judgments, liabilities,
costs and expenses (including reasonable attorney's fees) arising from a claim
or lawsuit resulting from 1) the testing, marketing, advertisement, sale or
distribution of CTI's finished product or service in which the Product is used;
2) any contamination of or defect in the Product arising after shipment by CIL;
3) the use of CTI's finished products or services by any person; or 4) any
breach by CTI of its warranties

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under Section 7. Notwithstanding the foregoing, CTI shall not be required to
indemnify and hold harmless CIL for any liability arising, in whole or in part,
out of CIL's breach of warranties for which CIL has assumed an indemnification
obligation under Section 12 hereof. CIL shall give CTI prompt written notice of
such claim or lawsuit and shall permit CTI to undertake the defense thereof at
CTI's expense. CIL shall cooperate in such defense, to the extent reasonably
requested by CTI, at CTI's expense. If CTI accepts the defense, CIL shall have
the right to participate in such defense, at its own expense, to the extent that
in its judgment CIL may be prejudiced thereby. In any claim made or suit brought
from which CIL seeks indemnification under this section, CIL shall not settle,
offer to settle or admit liability or damages without the prior written consent
of CTI, such consent not being unreasonably withheld.

         14. No Agency Relationship. Nothing contained in this Agreement and no
activity by either Party in the performance hereof shall constitute, create, or
be deemed to constitute or create between either Party, or between or among
either Party and any of its officers, directors, employees or agents, an agency
or representative relationship or a partnership, joint venture or association,
nor shall this Agreement or any activity by either Party hereunder create or be
deemed to create any express or implied right, power or authority of either
Party to enter into any agreement or commitment, or to incur any liability or
obligation, on behalf of the other Party; it being understood and agreed that
each Party is and shall remain an independent contractor with respect to the
other.

         15. Expiration, Termination and Renewal. Except as otherwise specified
in this Agreement, this Agreement shall expire at the end of its Initial Term.
In addition, this Agreement is subject to termination by either Party, at its
option, effective within the time period noted below after its delivery of
written notice to the other Party upon the happening of the following event: The
other Party breaches in any material respect any of its covenants, agreements,
obligations, warranties or representations, hereunder and such breach remains
unremedied for ninety (90) days after delivery of notice of such beach by the
Party delivering notice of termination. If CIL is not then in breach of its
obligations to deliver New Product in accordance with the provisions of Section
2.1 of this Agreement, then this Agreement will automatically renew for the
three-year period beginning January 1, 2003 and ending December 31, 2005, (the
"Renewal Term") on the same terms and conditions set forth herein, including but
not limited to the provisions of Section 2.2. In January 2002, CTI and CIL will
meet to set minimum purchase amounts for New Product under Section 2.1 and
prices under Section 2.4 for the Renewal Term. The prices of New Product and
Recovery Water during the Renewal Term will take into account the * over the
period from July 1, 2001 through December 31, 2001, such market prices to be
determined based on *. The parties agree that the price will in no event be less
than * or greater than * of the prices during the Initial Term as set forth in
Section 2.4. If the parties can not agree on a market price by March 31, 2002,
then the price will be set by a third party arbitrator taking into account the
factors described above, together with *.

         16. Continuation of Representations, Warranties and Indemnification. No
expiration or termination of this Agreement by either Party shall terminate,
cancel or otherwise affect the continued validity and enforceability without
expiration, of each Party's duty to indemnify, defend and hold the other
harmless under Section 12 and 13 and the confidentiality provisions under
Section 20.

         17. Successors and Assigns. Neither Party shall, without the prior
written consent of the other, assign, transfer, subcontract or take any other
action that shall constitute, give rise to or result in the assignment, transfer
or subcontracting of any of its duties or obligations hereunder. This Agreement
shall be binding upon and inure to the benefit of the permitted successors and
assigns of each Party.

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

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         18. Notices. All notices and other communication hereunder shall be
given by certified or registered United States mail, postage prepaid (provided
that any such notice or communication may be transmitted by facsimile machine if
the original thereof is placed in the United States mail on the same day as it
is faxed), addressed as follows (or to such other address as either Party shall
notify in writing to the other):

         If to CIL:

                                         Cambridge Isotope Laboratories, Inc.
                                         50 Frontage Road
                                         Andover, Massachusetts 01810
                                         Attention: Joel C. Bradley, President
                                         Telecopier No. (978) 749-2768;

                                                and

         If to CTI:

                                         CTI, Inc.
                                         810 Innovation Drive
                                         Knoxville, Tennessee 37932
                                         Attention:  Terry Douglass
                                         Telecopier No. (423) 218-3000

         If to PETNET:

                                         P.E.T.NET Pharmaceutical Services, Inc.
                                         810 Innovation Drive
                                         Knoxville, Tennessee 37932
                                         Attention:  Terry Douglass
                                         Telecopier No. (423) 218-3000

         19. Entire Agreement. This Agreement constitutes the entire agreement
between the Parties concerning its subject matter, entirely superseding any
prior agreements or understanding, oral or in writing, concerning such subject
matter. It may be modified, supplemented or amended only by a written instrument
signed by a duly authorized representative of each Party.

         20. Confidentiality. Neither Party shall, without the prior written
consent of the other, disclose to any third Party the existence of any aspect of
this Agreement except to the extent that such disclosure is required by law or
to the extent that such disclosure to employees is necessary for the disclosing
Party's performance hereof. CTI and CIL shall maintain in strict confidence any
and all materials and information relating to the Product disclosed or provided
by the other party and any and all confidential technical or business
information relating to the other party which has been obtained in connection
with performance of this Agreement, and shall not disclose any such materials or
information to any third party without the other party's prior written consent,
except where the disclosure is necessary for carrying out the purpose of this
Agreement; provided, however, that the foregoing restrictions shall not apply
with respect to any materials or information which;

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         (a) can be proven to have been in that party's possession prior to its
disclosure by the other party;

         (b) is in the public domain prior to its disclosure by the other party;

         (c) has become part of the public domain subsequent to its disclosure
by the other party through no fault of the recipient party;

         (d) has been lawfully obtained from a third party having authority to
disclose, without incurring the obligation of confidentiality; or

         (e) is required to be disclosed by applicable law.

In any case where either party hereto discloses any of the materials or
information disclosed or provided by the other party to a third party with the
consent of the other party or for the purpose of carrying out the purpose of
this Agreement, the disclosing party shall cause the third party to accept the
same confidentiality obligations as those of the disclosing party under this
Agreement. CTI hereby agrees to be bound by the provisions of this Section 20 to
the same extent as CTI.

         21. Headings. The section headings in this Agreement are only for
convenience of reference and shall have no bearing on the meaning or
construction of any provision of this Agreement.

         22. Additional Provisions Related to PETNET. For so long as (a) PETNET
is a subsidiary or affiliate of CTI; and (b) CTI is not in breach of this
Agreement, PETNET shall meet its contractual obligations hereunder by purchasing
its requirements for Product from CTI, and shall not be required to purchase its
requirements for Product directly from CIL. Upon the earlier of (a) PETNET
ceasing to be a subsidiary or affiliate of CTI; or (b) CTI's breach of this
Agreement (the earlier of such events being referred to as the commencement of
the "PETNET Direct Purchase Period"), PETNET shall immediately purchase its
requirements for Product directly from CIL in accordance with this Agreement,
and otherwise comply with and fulfill all of the obligations applicable to CTI
under this Agreement; provided, however, that in the event that the PETNET
Direct Purchase Period commences because PETNET ceases to be a subsidiary or
affiliate of CTI, so long as CTI continues during the PETNET Direct Purchase
Period to fulfill its minimum purchase obligation under Section 2.1 hereof,
PETNET shall not be required to make such minimum purchases. Nothing in this
Section 22 shall amend, modify or alter any of CTI's obligations under this
Agreement, which shall continue unaffected by the commencement of the PETNET
Direct Purchase Period and PETNET's obligations during such period.

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         23. Dispute Resolution.

         23.1 Negotiation by Senior Executives. The parties shall attempt in
good faith to resolve any dispute arising out of, or relating to this Agreement
promptly by negotiation between senior executives who have authority to settle
the controversy. Any party may give the other parties written notice of any
dispute not resolved in the ordinary course of business. Within thirty (30) days
after delivery of the notice, the executives designated by each party shall meet
at a mutually acceptable time and place and thereafter as often as they
reasonably deem necessary, to attempt to resolve the dispute. If the dispute has
not been resolved within sixty (60) days after delivery of the notice, or if the
parties fail to meet within thirty (30) days, any party may initiate subsequent
proceedings as contemplated herein.

         23.2 Arbitration. In the event of any disputes involving the parties,
or arising out of or relating to this Agreement, its execution, or performance
hereunder, other than disputes based on third party pleading following a claim
filed against either party by a third party (such as for product liability),
shall be settled by final and binding arbitration before the American
Arbitration Association (the "AAA") or its successor. Either party may submit
the dispute for arbitration by filing a written demand therefor with the AAA and
serving the demand therefore on the other party. All arbitration hereunder shall
be governed by the expedited commercial arbitration rules of the AAA in effect
at the time the arbitration is commences, as the same may be modified during the
arbitration. The arbitrator shall determine whether a dispute is subject to
arbitration and resolve matters relating to discovery. The arbitrator may grant
injunctive relief, but in no event will an arbitrator be empowered to award
punitive or exemplary damages. Any arbitration pursuant to this agreement shall
be conducted by one (1) arbitrator selected by the parties, or, if the parties
are unable to agree, by the AAA. The hearings in connection with any arbitration
hereunder shall be conducted in Washington, D.C., at such time and place
selected by the arbitrator. Any decision of the arbitrator shall be in writing
and a copy thereof shall be delivered to each of the parties within thirty (30)
days of the conclusion of the hearings. The judgment upon the award rendered in
any such arbitration shall be final and binding upon the parties and may be
entered and enforced in any court having jurisdiction.

         23.3 Injunctive Relief. If any of the covenants or agreements set forth
in this Agreement are violated or threatened to be violated, any party
acknowledges and agrees that such violation or threatened violation will cause
irreparable injury to the non-defaulting party, that the remedy at law for such
violation will be inadequate, and that the non-defaulting party shall be
entitled to obtain an injunction or preliminary injunction prohibiting the
continuance, occurrence or recurrence of such violation or threatened violation
or an injunction requiring compliance with such covenants or agreements, in
addition to (and not in limitation of) any other rights and remedies available
to the non-defaulting party at law or equity. The commencement or obtaining an
injunction shall not be deemed a waiver of its right to arbitration, damages or
other relief. In the event any party is required to post a bond in connection
with seeking or obtaining injunctive relief, then the parties agree that the
amount of such bond shall be in the lowest amount required by applicable law.

         23.4 Forum. All actions brought by any party not submitted to
arbitration, other than the enforcement of any arbitration award, shall be
brought only in the federal courts located in Delaware, which shall have
exclusive jurisdiction for all claims arising out of or relating to this
Agreement or not arbitrated, other than enforcing an arbitration award. The
parties consent to

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the exclusive jurisdiction of the federal courts in Delaware, and waive any
right they may have to object to the jurisdiction of such courts.

         23.5 Waiver of Jury Trial. The parties irrevocably waive trial by jury
in any action, proceeding or counterclaim, whether at law or in equity, brought
by either of them, to the fullest extent permitted by law.

         23.6 Attorney's Fees. The prevailing party in any arbitration,
litigation or other proceeding arising out of or relating to this Agreement, its
execution or its enforcement, shall recover its reasonable attorneys' fees and
costs (including expert witness fees and costs, travel time and associated
costs, copy costs, deposition costs, exhibit costs, fees and costs on appeal,
fees and costs associated with execution on any judgment or order, special
transcript costs, and the appointment of a special master or discovery referee),
in addition to such other relief as may be awarded.

         23.7 Governing- Law. This Agreement shall be governed by and construed
in accordance with the laws of the State of Delaware without application of any
conflict of laws principles.

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         IN WITNESS WHEREOF, the parties have caused this Agreement to be signed
by their duly authorized representatives as of the date first above written.

                                       CTI, INC.

                                       By: /s/ T. D. Douglass
                                           -------------------------------------
                                           [Name & Title]    President

                                       P.E.T. NET PHARMACEUTICALS, INC.

                                       By: /s/ T. D. Douglass
                                           -------------------------------------
                                                             President

                                       CAMBRIDGE ISOTOPE LABORATORIES, INC.

                                       By: /s/ Joel C. Bradley
                                           -------------------------------------
                                           Joel C. Bradley
                                           President

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                                                                       EXHIBIT A

                             PRODUCT SPECIFICATIONS

o  0-18 Water:                      Greater than 95% isotopic enrichment,
                                    normalized with respect to hydrogen. Less
                                    than 2% O-17 water.

o  Conductivity:                    Less than 30 umho/cm

o  pH:                              6.0-7.0

o  Ionic Purity:                    Ca, Br, C, Cu less than 5 mg/L.-Mg, Fe, F
                                    (as fluoride), I, less than 1 mg/L. -Na, C1,
                                    K less 10 mg/L.

o  Appearance:                      Clear, colorless, free of visible
                                    particulate matter.

o  Bioburden:                       Less than 100 CFU/gram.

o  Pyrogen:                         Minimum per LAL test.

o  Vial:                            10 gm, type 1 borosilicate glass vial, grey
                                    butyl rubber stopper, aluminum crimp seal.

o  Label:                           Product name, weight in grams, isotopic
                                    enrichment, manufacturer's name and lot,
                                    manufacturer's product number, date of
                                    manufacture.

o  Certificate of Analysis by lot number.

o  Letter of Compliance to Product specifications.

                                       12<PAGE>
                                                                  EXHIBIT 10.14

                            MASTER PURCHASE AGREEMENT
                                   NO. 990901

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

                                   WITNESSETH:

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

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

1.     EFFECTIVE DATE AND CONTRACT TERM.

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

       1.1.   SUPERCESSION OF PREVIOUS AGREEMENT.

              None.

       1.2.   PRODUCTS

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

       1.3.   SPECIFICATIONS FOR PRODUCTS.

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

2.     PURCHASE OF PRODUCTS.

       2.1.   EXCLUSIVE METHOD.

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

       2.2.   DELIVERY DATE.

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

                                                                            1/14
<PAGE>

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

       2.2.1  LATE DELIVERY

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

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

              2. terminate this Agreement for Default,

              3. claim for damages suffered.

3.     PRICE AND PAYMENT TERMS.

       3.1.   PRICES

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

       3.2.   NO ADDITIONAL CHARGES

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

       3.3.   INVOICING AND PAYMENT

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

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

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

4.     SCHEDULING AND RESCHEDULING OF ORDERS

       4.1.   PROCEDURE.

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<PAGE>

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

5.     LIMITATIONS OF LIABILITY.

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

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

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

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

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

6.     CHANGES

       6.1.   BUYER CHANGES.

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

                                                                            3/14
<PAGE>

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

       6.2.   SELLER CHANGES.

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

       6.3    NEW PRODUCTS

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

7.     SHIPPING

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

8.     WARRANTY.

              Seller's Standard Warranty applies. See Exhibit C.

       8.1.   TERMS OF WARRANTY.

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

       8.2.   INVENTORY.

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

                                                                            4/14
<PAGE>

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

9.     PATENT AND OTHER PROPRIETARY RIGHTS INDEMNIFICATION.

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

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

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

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

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

10.    INDEMNITIES.

       10.1.  INDEMNITY. (Products and Completed Operations).

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

       10.2.  INDEMNITY. (Products and Completed Operations).

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

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<PAGE>

11.    TERMINATION.

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

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

                2.) Is adjudged bankrupt;

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

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

                5.) Becomes insolvent or suspends business; or

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

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

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

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

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

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

       11.1.  BUYER'S LIABILITY UPON TERMINATION/ORDER CANCELLATION

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

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

12.    SPARE AND REPLACEMENT PARTS.

       12.1.  AVAILABILITY OF PARTS.

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

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<PAGE>

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

       12.2.  DELIVERY OF SPARE AND REPLACEMENT PARTS.

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

       12.3.  MAINTENANCE AND REPAIR.

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

       12.4.  REPAIRS/REVISION LEVEL.

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

13.    QUALITY ASSURANCE

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

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

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

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<PAGE>

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

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

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

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

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

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

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

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

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

                                                                            8/14
<PAGE>

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

14.    FORCE MAJEURE.

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

15.    PROPRIETARY INFORMATION

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

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

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

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

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

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<PAGE>

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

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

16.    GENERAL

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

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

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

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

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

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

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

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<PAGE>

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

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

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

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

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

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

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

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

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

17.   NOTICES.

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

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<PAGE>

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

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

18.   AUTHORITY TO EXECUTE AGREEMENT

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

CTI PET Systems, Inc.                         Hamamatsu Corporation

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

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

                                                                           12/14
<PAGE>

                                   EXHIBIT A:
                                   ----------

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

R7899-01      To Be Determined                   25mm round PMT

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

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

Rejection Criteria:

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

o      Failure or intermittent failure due to internal shorts

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

o      Failure to meet Buyer standard stability monitoring criteria

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

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

o      Seller will issue a return authorization number to Buyer

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

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

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

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

                                                                           13/14
<PAGE>

                                    EXHIBIT B
                                    ---------

                        PRICING FOR PHOTOMULTIPLIER TUBES

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

*
$ *

PRICING:

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

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

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

                                                                           14/14

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

                       Warranty for Photomultiplier Tubes

Unless otherwise agreed the Seller (HAMAMATSU) guarantees to the original
Buyer to refund the price paid for, or at the Seller's discretion, to
repair or replace, those tubes which proved to the Seller's reasonable
satisfaction not to conform to the published specifications at the time of
receipt of materials by the Buyer or to have failed by reason of faulty design
or workmanship during a period of fifteen months.

This guarantee is subject to the following provisions:

1. Claims for damage in transit will be considered only if the Buyer promptly
   notifies the Seller upon receipt of the tubes.

2. The guarantee shall not extend to failures by reason of defects which ought
   reasonably to have been discovered by the Buyer upon inspection and testing
   of the tubes and were not reported to the Seller within thirty days.

3. The Buyer informs the Seller promptly on discovery of any alleged defect
   and, if and when requested, returns the tubes, (cost of shipping to be born
   by the Seller), as the Seller directs with a full written report of the
   defect.

4. The tubes have been stored, installed, maintained, and used properly, having
   regard in particular to the applicable specifications and instructions for
   use as published by the Seller.

5. The Seller's liability in the case of tubes or components not of the
   seller's manufacture shall in non circumstances extend beyond any
   corresponding liability to the Seller of the manufacturer of such tubes
   or components.

All expressed and implied conditions, warranties and other liabilities arising
under common law or statue are expressly excluded.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00039-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00039-of-00352.parquet"}]]