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                          TECHNOLOGY LICENSE AGREEMENT

This Technology License Agreement (Agreement) dated as of the Effective Date as
defined below is made by and between Silicon Evolution, Inc., an Oregon
corporation, ("SEI"), and Isonics Corporation, a California corporation,
("Isonics").

                                    RECITALS

A)   SEI owns certain intellectual property assets which are more particularly
     described on Exhibit "A" (the " SEI IP").

B)   SEI has licensed intellectual property from Wacker Siltronic Corporation
     and Wacker-Siltronic AG by agreement dated May 31, 2000 which are more
     particularly described on Exhibit "B" (the "Wacker IP").

C)   Isonics desires to obtain a license to use, commercialize, and sell
     products made with the IP, and to further license and sublicense the SEI IP
     and the Wacker IP.

D)   SEI is willing to grant such a license to Isonics on the terms set forth
     herein.

     1.   DEFINITIONS

          a.   AFFILIATE: "Affiliate" of a party shall mean any person,
     organization, or entity that in any way, directly or indirectly, controls,
     is controlled by, or is under common control with such party. For the
     purposes of this definition, "control" shall mean ownership of at least
     fifty percent (50%) equity interest in or by such person, organization, or
     entity.

          b.   BUSINESS: "Business" shall mean the business of manufacturing and
     marketing silicon-on-insulation wafers for the semiconductor industry.

          c.   BUSINESS INFORMATION: "Business Information" means any material
     in human or machine readable form used, compiled or produced by or for the
     business of manufacturing and using the Licensed Technology for the
     Licensed Products as set forth on Exhibit "A".

          d.   CLEAN ROOM LEASES. "Clean Room Leases" means a sublease and two
     equipment leases, each of which is currently existing (although in default)
     between SEI and: (i) IMAT, Inc. who is the lessee of Building D (Phase
     VIII), D-100, located at 12516 N.E. 95th Street, Vancouver, Washington,
     which granted SEI a sublease for that property on March 1, 2000, but has
     served a notice of termination of that sublease effective October 7, 2001;
     (ii) IMAT, Inc. who is the owner of a DI water system made by US Filter
     Corporation and who has leased that equipment to SEI pursuant to a lease
     dated April 1, 2000, which lease is in default and as to which the lessor
     has served a notice of termination effective October 7, 2001; and (iii)
     Techno Vest International who is the owner of a Class 10 Cleanroom with
     related facilities which includes chiller, air-handling unit and air-duct,
     and a water clean station with related facilities which include waste
     chemical pump stations and chemical fume exhaust systems, and who has
     leased that

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     equipment to SEI pursuant to a lease dated April 30, 2000, which lease is
     in default and as to which the lessor has served a notice of termination
     effective October 7, 2001.

          e.   CONFIDENTIAL INFORMATION. "Confidential Information" shall mean
     (i) any patent applications, Trade Secrets, or Know-How held by either
     party and regardless of whether marked or designated "confidential" or
     "proprietary," and (ii) any information disclosed to the receiving party
     orally or in writing or in model form, in whatever format, relative to
     operations, existing and proposed contracts, sales training and techniques,
     financial data, trade secrets, marketing and business plans, research
     and/or development, data, formulae, processes, designs, specifications,
     product knowledge, procedures, methods and techniques whether disclosed by
     way of documents, oral communications, or visits to factories or other
     premises, and all information regarding the existing and proposed
     commercial operations of the disclosing party or relative to any other
     confidential proprietary information which is clearly marked at the time of
     disclosure as being "Confidential." Information transmitted orally and
     identified at that time as being Confidential shall be considered as
     "Confidential Information" if it is reduced to writing and transmitted to
     the receiving party within 15 days of its disclosure. "Confidential
     Information" does not include information relating to the Licensed
     Technology that SEI may provide to Isonics, which information Isonics may
     use and disclose in its discretion.

          f.   COPYRIGHTS: "Copyright(s)" means all forms of proprietary rights
     granted by a government with respect to an original work of authorship
     fixed in any tangible medium of expression from which it can be perceived,
     reproduced or otherwise communicated relating to the relating to the
     Technology covered by, and existing at the time of, this Agreement as
     specifically set forth in Exhibit "A".

          g.   EFFECTIVE DATE: "Effective Date" means that date when SEI
     executes and delivers this Agreement to Isonics by facsimile or hand
     delivery.

          h.   IMPROVEMENTS: "Improvements" shall mean any enhancement or
     modification of the Licensed Technology by Isonics.

          i.   KNOW-HOW: "Know How" means all factual knowledge and information
     related to the Business and the Technology which is not capable of precise,
     separate description but which, in accumulated form, after being acquired
     as a result of trial and error, gives to the one acquiring it the ability
     to produce and market something which one would otherwise not have known
     how to produce and market with the same accuracy or precision necessary for
     commercial success, provided, however, that such knowledge and information
     is not in the public domain or readily available to any third party other
     than a limited number of persons who have agreed to keep that information
     secret.

          j.   LICENSED PRODUCT: "Licensed Product" shall mean the products
     manufactured using any of the Licensed Technology.

          k.   LICENSED TECHNOLOGY: "Licensed Technology" shall mean the SEI IP
     and the Wacker IP.

          l.   PARTY: "Party" shall mean either SEI or Isonics as the context
     requires.

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          m.   PATENTS: "Patent(s)" means all forms of proprietary rights
     granted by a government with respect to a design or an Invention, including
     patents and certificates of addition, utility models, and enforceable
     patent applications, i.e. those under which injunctive relief is available,
     as well as any continuation, division, extension, renewal, revival, or
     reissue thereof or substitution therefor relating to the Technology covered
     by, and existing at the time of, this Agreement as specifically set forth
     on Exhibit "A"

          n.   TECHNICAL INFORMATION: "Technical Information" means any material
     in human or machine-readable form which embodies or describes the Licensed
     Technology set forth on Exhibit "A".

          o.   TECHNOLOGY: "Technology" shall mean any and all compositions,
     machines, articles of manufacture, processes, apparatus, (collectively the
     "Inventions"); Patents, Copyrights, Trade Secrets, and Know-How; data,
     writings and works of authorship (including without limitation software,
     protocols, program codes, audiovisual effects created by program code, and
     documentation related thereto, drawings); mask works; other tangible and
     intangible items (including without limitation materials, samples,
     components, tools, and operating devices, E.G., board assemblies, and
     engineering models); and Technical Information relating to the IP.

          p.   TECHNOLOGY RIGHTS: "Technology Rights" shall mean intellectual
     property rights including Patents, Copyrights, Trade Secrets and Know-How,
     but not trademarks and trade names.

          q.   TERRITORY: "Territory" shall mean world-wide.

          r.   TRADE SECRETS: "Trade Secrets" means any Technical Information
     and Business Information that generally facilitates the sale of products,
     increases revenues, is not generally known by others than the parties
     except by those subject to restrictions on disclosure, and provides an
     advantage over the competition.

     2.   GRANT

          a.   GRANT OF LICENSE: Subject to the terms and conditions of this
     Agreement, SEI hereby grants to Isonics: (A) (and to the fullest extent
     allowable in the license of the Wacker IP) a fully paid, non-exclusive,
     royalty free, perpetual, transferable, license of all of SEI's rights to
     the Wacker IP and all related Licensed Technology within the Territory and
     (B) a fully paid, exclusive, royalty free, perpetual, transferable, license
     of all of SEI's rights to the SEI IP and all related Licensed Technology
     within the Territory to (i) use, modify or create derivative works of the
     Licensed Technology and Licensed Products, or sublicense such rights (as
     set forth below) and (ii) make, have made, and sell the Licensed Products
     within the Territory.

          b.   IMPROVEMENTS: All Improvements to the Licensed Technology
     developed by Isonics will belong to Isonics. To the extent Isonics (or any
     person at the direction of Isonics) creates, invents, or authors such
     Improvement shall have the right to file patent applications, or any
     continuations, renewals or extensions thereof in its own name, or copyright
     registrations

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          c.   SUBLICENSES: Isonics may sub-license the Licensed Technology, or
     any portion thereof, in its discretion. SEI may not grant further licenses
     or sublicenses to the Licensed Technology without Isonics' approval. After
     the Effective Date, SEI may not practice the Licensed Technology without
     Isonics' written consent, which consent Isonics will not unreasonably
     withhold.

          d.   CONVERSION TO NON-EXCLUSIVE LICENSE. SEI may (upon 30 days' prior
     written notice and an opportunity during such 30 day period for Isonics to
     cure the deficiency described by SEI in the written notice) convert this
     Agreement into a non-exclusive license if either: (i) Isonics fails to
     engage in the production of silicon-on-insulation wafers on or before
     October 1, 2002; or (ii) Isonics fails to invest at least $2,000,000 in
     facilities for the production of silicon wafers (including plant and
     equipment) on or before October 1, 2002.

          e.   Isonics has the right to terminate this Agreement (and upon
     written notice to SEI of such event, SEI will return to Isonics the
     consideration described in paragraph 3(b), below, or the shares of common
     stock issued upon conversion of that consideration) at any time until
     December 1, 2001, unless prior to that time Isonics has entered into an
     agreement acceptable to Isonics in its sole discretion for the continuation
     of the Clean Room Leases, or the substitution of new leases for the Clean
     Room Leases.

     3.   OBLIGATION OF LICENSOR AND LICENSEE

          a.   NONASSERTION. SEI agrees that it shall not assert against Isonics
     or its customers and licensees or sublicensees, any claims for infringement
     or misappropriation based on the manufacture, use, or sale of any Licensed
     Products.

          b.   CONSIDERATION. As full payment for the grant of the license
     hereby, Isonics hereby agrees to issue to SEI 500,000 shares of its Series
     B Convertible Preferred Stock.

          c.   In connection with the acceptance of the shares, SEI represents
     and warrants that:

               (i)  SEI and its board of directors have consulted with its and
          their legal, tax, financial, and investment advisors regarding the
          acceptance of Isonics stock as full consideration for this Agreement.

               (ii) SEI and its advisors have reviewed information about Isonics
          as they have determined necessary or appropriate in making an
          investment decision with respect to the acquisition of Isonics stock
          (including, without limitation, Isonics' annual report on Form 10-KSB
          for the year ended April 30, 2001 and subsequent reports filed with
          the Securities and Exchange Commission all of which are available
          online at www.sec.gov).

               (iii) SEI is accepting the shares for investment purposes only
          and will not further distribute the shares except pursuant to a
          registration statement that Isonics may file in accordance with other
          commitments, or pursuant to an exemption from registration that must
          be established to the satisfaction of Isonics.

               (iv) SEI understands that because of the risks associated with
          its

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          acquisition of Isonics shares and because of the lack of
          transferability of those shares it may not be able to profit from the
          ownership of those shares for a significant period of time, if ever.

               (v)  SEI will cooperate with Isonics in establishing an exemption
          from registration for the issuance to SEI of the shares under the
          Securities Act of 1933 and under applicable state securities laws. For
          the purposes of this exemption, SEI represents and warrants that its
          principal place of business is in Vancouver, Washington.

     4.   PROTECTION OF INTELLECTUAL PROPERTY RIGHTS

          a.   GENERAL. Both Parties shall take reasonable measures to prevent
     unauthorized copying and protect the Licensed Technology, and use best
     efforts to protect the Trade Secrets and Know-How therein, but neither
     Party shall be obligated hereunder to take any measures in excess of those
     it takes to protect its own valuable Technology.

          b.   THIRD PARTY INFRINGERS. Upon the discovery of any infringement or
     misappropriation of the Licensed Technology under the Technology Rights,
     the Parties hereto shall consult together with a view to reaching an
     agreement as to the ways and means of eliminating such infringement or
     addressing such misappropriation. If the Parties agree jointly to commence
     litigation against potential third party infringers, they will agree by
     their respective shares the expense burden thereof, which shares will be
     identical to their respective division of any recoveries thereof. In the
     event that SEI declines to participate in the enforcement and/or protection
     of the Licensed Technology under the Technology Rights, Isonics may, at its
     sole discretion and expense and to the extent permitted by law, initiate
     proceedings or take such steps as it deems appropriate, to enforce its
     rights with respect thereto. SEI shall cooperate with Isonics in such
     defense at Isonics' sole expense.

          c.   SEI DISCLOSURE. During the period following the Effective Date,
     SEI will disclose to Isonics all information regarding the Technology that
     is or may be relevant to Isonics' contemplated operations, and will provide
     Isonics with copies of all written documentation relating to the
     Technology.

          d.   CONFIDENTIAL TREATMENT. The Parties will treat any Confidential
     Information obtained by the receiving party pursuant to the provisions of
     this Agreement as confidential, except that in the event of any dispute,
     litigation or arbitration proceedings between the parties, such
     Confidential Information may be disclosed to the tribunal. Prior to any
     Confidential Information being disclosed pursuant to the preceding
     sentence, the receiving party shall give the disclosing party reasonable
     notice of pending disclosure and both parties shall cooperate to undertake
     all reasonable measures to obtain a protective order prohibiting or
     limiting disclosure of such Confidential Information.

     5.   REPRESENTATIONS AND WARRANTIES SEI warrants and represents to Isonics
that (i) SEI has the right, power and legal capacity to enter into this
Agreement and has the right to license the Licensed Technology as set forth
above; and (ii) to the best of SEI's knowledge, the Licensed Technology does not
infringe upon the rights of any third party.

     6.   REMEDIES

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          a.   INJUNCTIVE RELIEF. In the event of a breach by either Party, of
     the confidentiality or licensing provisions contained in this Agreement,
     the non-breaching Party shall be entitled to an injunction from engaging in
     or continuing with any conduct which may constitute a breach or threatened
     breach of those provisions. An injunction may also be sought against the
     breaching Party from rendering services to any person, firm, corporation,
     association or other entity which may in some manner receive benefit from
     the breaching Party's breach or threatened breach of those provisions. The
     Parties agree that there is no adequate remedy at law for the irreparable
     harm that would result from a breach thereof and therefore the Parties
     consent to injunctive relief to enforce this Agreement. Nothing in this
     Section shall be construed as prohibiting the Parties from pursuing other
     remedies which may be available for breach or threatened breach, including
     the recovery of damages.

          b.   ATTORNEYS' FEES. In the event of any action or proceeding brought
     by either Party against the other under this Agreement, the prevailing
     Party shall be entitled to recover all expenses incurred therefor,
     including, but not limited to, reasonable attorneys' fees.

          c.   DISPUTE RESOLUTION.

               (i)  STEP NEGOTIATIONS. The Parties shall attempt in good faith
          to resolve any dispute arising out of or relating to this Agreement
          promptly by negotiations, as follows. Any Party may give the other
          Party written notice of any dispute not resolved in the normal course
          of business. Executives of both Parties who have previously been
          involved in the dispute shall meet at a mutually acceptable time and
          place within 10 days after delivery of such notice, and thereafter as
          often as they reasonably deem necessary, to exchange relevant
          information and to attempt to resolve the dispute. If the matter has
          not been resolved by these persons within 30 days of the disputing
          Party's notice, or if the Parties fail to meet within 10 days, the
          dispute shall be referred to senior executives of both Parties who
          have authority to settle the dispute and who shall likewise meet to
          attempt to resolve the dispute. If the matter has not been resolved
          within 30 days from the referral of the dispute to senior executives,
          or if no meeting of senior executives has taken place within 15 days
          after such referral, either Party may initiate mediation as provided
          hereinafter. If a negotiator intends to be accompanied at a meeting by
          an attorney, the other negotiator shall be given at least three
          working days' notice of such intention and may also be accompanied by
          an attorney. All negotiations pursuant to this clause are confidential
          and shall be treated as compromise and settlement negotiations for
          purposes of the Federal Rules of Evidence and state rules of evidence.

               (ii) MEDIATION. If the dispute has not been resolved by
          negotiation as provided above, the Parties shall endeavor to settle
          the dispute by mediation by the Judicial Arbiter Group, Inc., Denver,
          Colorado, under its then effective rules.

               (iii) ARBITRATION. Should all good faith attempts to resolve the
          dispute amicably as set forth above be exhausted, and if agreed to by
          the Parties, any dispute arising in connection with this Agreement may
          be finally settled by arbitration before the Judicial Arbiter Group,
          Denver, Colorado, by three

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          arbitrators appointed on an expedited basis. Such arbitration shall
          take place in Denver, Colorado. The arbitrators shall be bound by the
          laws governing this Agreement, and this Agreement, and shall be bound
          by the obligation to retain Confidential Information in confidence in
          perpetuity and not to disclose Confidential Information.

     7.   MISCELLANEOUS

          a.   SUCCESSORS AND ASSIGNMENT. Except as provided herein, this
     Agreement or any rights hereunder shall not be assigned or transferred, in
     whole or in part, by either Party without the prior written consent of the
     other Party, and any such permitted assignment or transfer shall be binding
     on each Party's successors and permitted assignees.

          b.   LIMITATION OF RIGHTS. Except as expressly provided in this
     Agreement, nothing contained herein shall be construed as conferring any
     license or other rights by implication, estoppel or otherwise.

          c.   SEVERABILITY. If any provision of this Agreement be adjudicated
     invalid or against public policy for any reason by a court of competent
     jurisdiction, it is specifically intended that each and every provision not
     so invalidated shall remain in full force and effect.

          d.   CHOICE OF LAW. This Agreement is made and entered into in the
     State of Colorado, and shall in all ways be governed and construed by the
     law of such State, without regard to conflicts of law.

          e.   WAIVER. No waiver of any provision of this Agreement shall be
     construed to be a waiver of any subsequent breach of the same or any other
     provision of this Agreement.

          f.   INDEXING. All indexing set forth in this Agreement is intended
     for convenience only and shall not control or affect the meaning,
     construction or effect of this Agreement or of any of the provisions
     thereof.

          g.   NON-PARTNERSHIP. Each Party shall bear its respective expenses,
     risks, and liabilities arising out of its efforts related to this
     Agreement. The Parties to this Agreement are independent contractors. This
     Agreement shall not constitute, create, give effect to, or imply a joint
     venture, pooling arrangement, partnership, formal business organization or
     any type of permanent arrangement of any kind. Neither Party shall (i) have
     the authority to bind the other except to the extent authorized herein,
     (ii) be liable to the other for any damages, whether direct, indirect,
     special, incidental or consequential, whether arising out of contract, tort
     (negligence) or strict liability, or (iii) share losses with the other.

          h.   NO THIRD-PARTY BENEFICIARY RIGHTS. No provision of this Agreement
     is intended nor shall be interpreted to provide or create any third party
     beneficiary rights or any other rights of any kind in any sublicensee, and
     all provisions hereof shall be personal solely between the Parties hereto.

          i.   NOTICES. All notices which Lessor or Isonics may be required, or
     may

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     desire, to serve on the other may be served by personal service or by
     mailing by certified mail, postage prepaid, at such address as the parties
     may from time to time designate to the other in writing, or by facsimile to
     such telephone number as the parties may from time to time designate
     provided the sending facsimile machine automatically prints out a receipt
     for such transmission. The time of rendition of such notice shall be deemed
     to be the time when the notice is either personally delivered or deposited
     in the mail as herein provided, or a facsimile receipt has been printed.

          j.   INTEGRATION. This Agreement constitutes the entire Agreement
     between the Parties. No amendments to this Agreement shall be made other
     than by a written amendment signed by both Parties.

     By their signatures below: (a) SEI affirmatively represents to Isonics that
it's board of directors has unanimously approved this Agreemenet and the grant
of this license to Isonics; and (b) Isonics affirmatively represents to SEI that
it will submit this Agreement to its board of directors and that it will advise
SEI of the Effective Date hereof.

Licensor                                Licensee

Silicon Evolutions, Inc.                Isonics Corporation

By:                                     By:
   ---------------------------             ---------------------------------
Ralph Ahlgren, President                James E. Alexander, President


By:
   ---------------------------
Hans Walitzki, Vice President




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