| Section 1 | Definitions |
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|  1.1 |   | For the purposes of this Agreement the following terms shall have the following meanings: |
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|  1.1.1 |   | “Termination For Cause" shall mean termination by the Corporation of the Executive's employment by the Corporation by reason of the Executive's willful dishonesty towards, fraud upon, or deliberate injury or attempted injury to the Corporation, or by reason of the Executive's willful material breach of this Agreement, which has resulted in material injury to the Corporation. |
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|  1.1.2 |    | “Termination Other Than For Cause" shall mean termination by the Corporation of the Executive's employment by the Corporation (other than in a Termination for Cause) and shall include constructive termination of the Executive's employment by reason of material breach of this Agreement by the Corporation, such constructive termination to be effective upon notice from the Executive to the Corporation of suchconstructive termination. |
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|  1.1.3 |   | "Voluntary Termination" shall mean termination by the Executive of the Executive's employment other than (i) constructive termination as described herein, (ii) "Termination upon a Change in Control," and (iii) termination by reason of the Executive's death or disability as described herein. |
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|  1.1.5 |   | "Change in Control" shall mean (i) the time that the Corporation first determines that any person and all other persons who constitute a group (within the meaning of § 13(d)(3) of the Securities Exchange Act of 1934 ("Exchange Act")) have acquired direct or indirect beneficial ownership (within the meaning of Rule 13d-3 under the Exchange Act) of twenty percent (20%) or more of the Corporation's outstandingsecurities, unless a majority of the "Continuing Directors" approves the acquisition not later than ten (10) business days after the Corporation makes that determination, or (ii) the first day on which a majority of the members of the Corporation's board of directors are not "Continuing Directors." |
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|  1.1.6 |   |  "Continuing Directors" shall mean, as of any date of determination, any member of the Corporation's board of directors of the Corporation who (i) was a member of that board of directors on January 31, 2001, (ii) has been a member of that board of directors since inception of the Company, or (iii) was nominated for election or elected to the Corporation's board of directors with the affirmative vote of the greaterof a majority of the Continuing Directors who were members of the Corporation's board of directors at the time of such nomination or election. |
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| Section 2 | Duties |
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| Section 3 | Terms of Employment |
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|   | 3.1 | Initial TermThe term of employment of the Executive by the Corporation shall be for a period of seven years beginning with Effective Date July 1, 2008 ("Initial Term"), unless terminated earlier pursuant to this Agreement.  At any time prior to the expiration of the Initial Term, the Corporation and the Executive may by mutual written agreement extendthe Executive's employment under the terms of this Agreement for such additional periods as they may agree. |
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| Section 4 | Compensation |
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|   | 4.1 | Base SalaryAs payment for the services to be rendered by the Executive as provided in Section 1 and subject to the terms and conditions of Section 2, the Corporation agrees to pay to the Executive a "Base Salary" for the twelve (12) calendar months beginning the Effective Date at the rate as follows: a)           $150,000 USD per annum for July 1, 2008 to June 30, 2010b)           $180,000 USD per annum for July 1, 2010 to June 30, 2012c)           $210,000 USD per annum for July 1, 2012 to June 30, 2015 |
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|   | 4.2    | Additional Compensation and BonusesThe Executive may be paid additional compensation by way of bonuses, additional stock options or otherwise as determined from time to time by management and approved by a majority of the Board of Directors. |
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|   | 4.3   | Stock options.As incentive to the executive to commit to full time employment with the Company, and in consideration of the lost opportunity in so doing, the Company grants the Executive 14,000,000 options to purchase the Company’s stock at $ 0.02 USD, said options to be exercisable at the rate of 2,000,000 at beginning of each employment year  or inthe case of early termination for any reason whatsoever, all remaining options will be granted on the date of that termination. Any unexercised options will expire ten years after the date of grant. |
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|   | 4.4 | Additional BenefitsDuring the term of this Agreement, the Executive shall be entitled to the following fringe benefits: |
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|   | 4.4.1 | Executive BenefitsThe Executive shall be eligible to participate in such of the Corporation's benefits and deferred compensation plans as are now generally available or later made generally available to executive officers of the Corporation, including, without limitation, the Corporation's Stock Option Plan, profit sharing plans, annual physical examinations, dental and medical plans, personal catastrophe and disability insurance, financial planning, retirement plans and supplementary executive retirementplans, if any.  For purposes of establishing the length of service under any benefit plans or programs of the Corporation, the Executive's employment with the Corporation will be deemed to have commenced on the Effective Date. |
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|   | 4.4.2 | VacationThe Executive shall be entitled to six (6) weeks of vacation during each year during the term of this Agreement and any extensions thereof, prorated for partial years. |
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|   | 4.4.3  | Medical InsuranceFor the term of this Agreement and any extensions thereof, the Corporation shall at its expense procure and keep in effect a Preferred Plan of medical insurance through a Medical Services plan of the Executive’s choice. |
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|   | 4.4.4    |  Life InsuranceFor the term of this Agreement and any extensions thereof, the Corporation shall at its expense procure and keep in effect term life insurance on the life of the Executive payable to the in the aggregate amount of $1,000,000 with the Corporation being the beneficiary thereof.  Further, the cost of such insurance will be paid by the Corporation. |
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|   | 4.4.5  | Directors’ Liability InsuranceFor the term of this Agreement and any extensions thereof, and so long as the Executive is a Director of the Corporation, the Corporation shall at its sole expense,  maintain and keep in effect Directors’ liability insurance on behalf of the Executive. In event that the Corporation does not, or is unable to provide such insurance coverage, then the Corporation will indemnify the Executive against any claims or liabilities that may arise, other than for fraud, as a result ofthe Executive’s service  as a Director. |
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|   | 4.46 | Automobile AllowanceFor the term of this Agreement and any extensions thereof the Corporation will reimburse the Executive for mileage accumulated upon his motor vehicle while being used for corporate matters. |
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|   | 4.47 | Reimbursement for ExpensesDuring the term of this Agreement, the Corporation shall reimburse the Executive for reasonable and properly documented out-of-pocket business and/or entertainment expenses incurred by the Executive in connection with her duties under this Agreement. |
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| Section 5 | Outside Activities of Executive |
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| Section 6 | Obligation to Pay |
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| Section 7 | Termination |
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|   | 7.1 | For CauseTermination for Cause may be effected by the Corporation at any time during the term of this Agreement and shall be effected by written notification to the Executive.  Upon Termination For Cause, the Executive shall promptly be paid all accrued salary, bonus compensation to the extent earned, vested deferred compensation (other than pension play or profit sharing plan benefits which will be paid in accordance with the applicable plan), any benefits under any plans of the Corporationin which the Executive is a participant to the full extent of the Executive's rights under such plans, accrued vacation pay and any appropriate business expenses incurred by the Executive in connection with her duties hereunder, all to the date of termination, and all Severance Compensation provided, but no other compensation or reimbursement of any kind. |
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|   | 7.2 | Other Than For CauseNotwithstanding anything else in this Agreement, the Corporation may affect a Termination Other Than for Cause at any time upon giving written notice to the Executive of such termination.  Upon any Termination Other Than For Cause, the Executive shall promptly be paid all accrued salary, bonus compensation to the extent earned, vested deferred compensation (other than pension plan or profit sharing plan benefits which will be paid in accordance with the applicable plan), any benefitsunder any plans of the Corporation in which the Executive is a participant to the full extent of the Executive's rights under such plans (including accelerated vesting, if any, of awards granted to the Executive under the Corporation's stock option plan), accrued vacation pay and any appropriate business expenses incurred by the Executive in connection with her duties hereunder, all to the date of termination, and all Severance Compensation provided, but no other compensation or reimbursement of any kind |
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|   | 7.3 | By Reason of DisabilityIf, during the term of this Agreement, the Executive, in the reasonable judgment of the Corporation's board of directors, has failed to perform her duties under this Agreement on account of illness or physical or mental incapacity, and such illness or incapacity continues for a period of more than three consecutive months, the Corporation shall have the right to terminate the Executive's employment hereunder by written notification to the Executive and payment to the Executive of all accruedsalary, bonus compensation to the extent earned, vested deferred compensation (other than pension plan or profit sharing plan benefits which will be paid in accordance with the applicable plan), any benefits under any plans of the Corporation in which the Executive is a participant to the full extent of the Executive's rights under such plans, accrued vacation pay and any appropriate business expenses incurred by the Executive in connection with her duties hereunder, all to the date of termination, with the exceptionof medical and dental benefits which shall continue through the expiration of this Agreement and all Severance Compensation provided, but no other compensation or reimbursement of any kind. |
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|   | 7.4 | On DeathIn the event of the Executive's death during the term of this Agreement, the Executive's employment shall be deemed to have terminated as of the last day of the month during which his death occurs and the Corporation shall promptly pay to his estate or such beneficiaries as the Executive may from time to time designate all accrued salary, bonus compensation to the extent earned, vested deferred compensation (other than pension plan or profit sharing plan benefits which will be paid in accordancewith the applicable plan), any benefits under any plans of the Corporation in which the Executive is a participant to the full extent of the Executive's rights under such plans, accrued vacation pay and any appropriate business expenses incurred by the Executive in connection with her duties hereunder, all to the date of termination, and all Severance Compensation provided, but no other compensation or reimbursement of any kind.  |
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|   | 7.5 | VoluntaryIn the event of a Voluntary Termination, the Corporation shall promptly pay all accrued salary, bonus compensation to the extent earned, vested deferred compensation (other than pension plan or profit sharing plan benefits which will be paid in accordance with the applicable plan), any benefits under any plans of the Corporation in which the Executive is a participant to the full extent of the Executive's rights under such plans, accrued vacation pay and any appropriate business expensesincurred by the Executive in connection with her duties hereunder, all to the date of termination, and all Severance Compensation provided, but no other compensation or reimbursement of any kind. |
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|   | 7.6 | Upon a Change in ControlIn the event of a Termination Upon a Change in Control, the Executive shall immediately be paid all accrued salary, bonus compensation to the extent earned, vested deferred compensation (other than pension plan or profit sharing plan benefits which will be paid in accordance with the applicable plan), any benefits under any plans of the Corporation in which the Executive is a participant to the full extent of the Executive's rights under such plans (including accelerated vesting, if any,of any awards granted to the Executive under the Corporation's Stock Option Plan), accrued vacation pay and any appropriate business expenses incurred by the Executive in connection with her duties hereunder, all to the date of termination, and all Severance Compensation, but no other compensation or reimbursement of any kind. |
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|   | 7.7 | Notice of TerminationThe Corporation may effect a termination of this Agreement pursuant to the provisions of this Section upon giving thirty (30) days written notice to the Executive of such termination.  The Executive may effect a termination of this Agreement pursuant to the provisions of this Section upon giving thirty (30) days written notice to the Corporation of such termination. |
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| Section 8 | Severance Compensation |
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|   | 8.1 | Severance Compensation in the Event of a Termination Upon a Change in Control  In the event the Executive's employment is terminated in a Termination Upon a Change in Control, the Executive shall be paid as severance compensation ("Severance Compensation") the greater of the balance of the unpaid salary calculated to the end of the term of this agreement times two (2) and his Base Salary (at the rate payable at the time of such termination), for a period of twenty-four (24) months from thedate of such termination.  Said Severance Compensation shall be paid regardless of Executive being employed by a new employer during such period.  Notwithstanding anything in this Section to the contrary, the Executive may in the Executive's sole discretion, by delivery of a notice to the Corporation within thirty (30) days following a Termination Upon a Change in Control, elect to receive from Compensation a lump sum Severance Compensation payment by bank cashier's check equal to the presentvalue of the flow of cash payments that would otherwise be paid to the Executive pursuant to this Section.  The Executive shall also be entitled to an accelerated vesting of any awards granted to the Executive under the Corporation's Stock Option Plan to the extent provided in the stock option agreement entered into at the time of grant.  The Executive shall continue to accrue retirement benefits and shall continue to enjoy any benefits under any plans of the Corporation in which the Executiveis a participant to the full extent of the Executive's rights under such plans, including any perquisites provided under this Agreement, through the remaining term of this Agreement. |
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|   | 8.2 | Severance Compensation in the Event of a Termination Other Than for CauseIn the event the Executive's employment is terminated in a Termination Other Than for Cause, the Executive shall be paid as Severance Compensation the greater of the balance of the unpaid salary calculated to the end of the term of this agreement and his Base Salary (at the rate payable at the time of such termination), for a period of twelve (12) months from the date of such termination.  Said Severance Compensation will be paid regardless of Executive being employed by a new employerduring such period.  Notwithstanding anything in this Section to the contrary, the Executive may in the Executive's sole discretion, by delivery of a notice to the Corporation within thirty (30) days following a Termination Upon a Change in Control, elect to receive from Compensation a lump sum Severance Compensation payment by bank cashier's check equal to the present value of the flow of cash payments that would otherwise be paid to the Executive pursuant to this Section.  The Executiveshall also be entitled to an accelerated vesting of any awards granted to the Executive under the Corporation's Stock Option Plan to the extent provided in the stock option agreement entered into at the time of grant.  The Executive shall continue to accrue retirement benefits and shall continue to enjoy any benefits under any plans of the Corporation in which the Executive is a participant to the full extent of the Executive's rights under such plans, including any perquisites provided under this Agreement,though the remaining term of this Agreement. |
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|   | 8.3 | Severance Compensation Upon Other TerminationIn the event of a Voluntary Termination, Termination For Cause, Termination by reason of the Executive's death or disability as described herein, the Executive or his estate shall be paid the greater of the balance of the unpaid salary calculated to the end of the term of this agreement and his Base Salary (at the rate payable at the time of such termination), for a period of six (6) months from the date of such termination, on the dates specified in Section 3.1.  Said SeveranceCompensation will be paid regardless of Executive being employed by a new employer during such period.  Notwithstanding anything in this Section to the contrary, the Executive may in the Executive's sole discretion, by delivery of a notice to the Corporation within thirty (30) days following a Termination Upon a Change in Control, elect to receive from Compensation a lump sum Severance Compensation payment by bank cashier's check equal to the present value of the flow of cash payments that would otherwisebe paid to the Executive pursuant to this Section.  The Executive shall also be entitled to an accelerated vesting of any awards granted to the Executive under the Corporation's Stock Option Plan to the extent provided in the stock option agreement entered into at the time of grant.  The Executive shall continue to accrue retirement benefits and shall continue to enjoy any benefits under any plans of the Corporation in which the Executive is a participant to the full extent of the Executive'srights under such plans, including any perquisites provided under this Agreement, through the remaining term of this Agreement. |
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| Section 9 | Confidentiality |
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| Section 10 | Idemnification |
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| Section 11 | Notices |
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| First American Scientific Corp | John Brian Nichols |
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| 700 – 101 Convention Way | _______________ |
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| Las Vegas, Nevada | _______________ |
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|   | USA 89109 |
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| Section 12 | Time |
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| Section 13 | No Release |
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| Section 14 | Survival |
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| Section 15 | Waiver |
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| Section 16 | Assignment |
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| Section 17 | Law Governing |
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| Section 18 | Attorney Fees |
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| Section 19 | Presumption |
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| Section 20 | Computation of Time |
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| Section 21 | Titles and Captions |
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| Section 22 | Pronouns and Plurals |
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| Section 23 | Entire Agreement |
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| Section 24 | Prior Agreements |
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| Section 25 | Agreement Binding |
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| Section 26 | Savings Clause |
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| Section 27 | Separate Counsel |
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|   | FIRST AMERICAN SCIENTIFIC CORP |             |
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|   |                           |             |   |
|   | By:                            | CALVIN KANTONEN  |   |
|   |                           | Calvin Kantonen  |   |
|   |                           | CFO and Chairman |   |
|   |                           |             |   |

|   | EXECUTIVE |                     |
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|   |      |                     |   |
|   | By:       | JOHN BRIAN NICHOLS       |   |
|   |      | John Brian Nichols  |   |
|   |      |                     |   |
|   |      |                     |   |

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