AMENDMENT No. 
      1

    


    dated
      as
      of October 12, 2007

    


    to
      an
      existing LICENSE AGREEMENT (dated 2 February 2006)

    


    _____________________________

    


    Between:

    


    IBt
      a
      Societe
      Anonyme incorporated in Belgium, having its registered office at 7180 Seneffe,
      

    Rue
      Jules
      Bordet 1, Zone Industrielle C, Belgium,

    


    hereby
      duly represented by its legal representatives John Carden, 

    hereinafter
      referred to as “IBt”,

    


    And:

    


    IsoRay
      Medical Inc.,
      incorporated in Washington, USA, having its registered office at Richland,
      WA
      99354-5411, 350 Hills Street, 

    Suite
      106,

    


    hereby
      duly represented by its legal representatives Roger Girard,

    hereinafter
      referred to as “ISO”,

    


    IBt
      and
      ISO are hereinafter separately referred to as “Party”
      and
      jointly as “Parties”.

     

    WHEREAS,

    


    ISO
      and
      IBt are parties to an existing license Agreement dated 2 February 2006 regarding
      IBt’s polymer technology (the “License Agreement”) according to which IBt grants
      to ISO a license to produce certain products under certain intellectual property
      rights.

    


    The
      parties wish to amend the License Agreement with the intent to modify the terms
      of the compensation
      paid by ISO in connection with the usage of IBt’s polymer
      technology.

     

    NOW,
      THEREFORE,

    


    In
      consideration of the premises and mutual covenants hereinafter
      contained

    


     IT
      HAS BEEN AGREED AS FOLLOWS:

    


    1      DEFINITIONS

    


    Unless
      the context requires otherwise, capitalized words and expressions in this
      agreement shall have the meaning set forth in the License Agreement. In
      addition, in this Amendment Agreement, the
      following capitalized words and expressions shall have the following meanings
      whether used in the
      singular or in the plural:

    


    “Amendment
      Agreement” means
      the
      present amendment agreement to the License Agreement. 


    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    “License
      Agreement” the
      license Agreement entered into between the Parties on 2 February
      2006

    regarding
      IBt’s polymer technology (including its Schedules).

    


    
      	 	
              2

            	
              AMENDMENT
                TO THE LICENSE AGREEMENT

            


    

    


    
      	 	
              2.1

            	
              The
                parties further agree to amend and restate Article 5 in its entirety
                as
                follows:

            


    

    


    “5.
      LICENCE FEES AND PAYMENT IN LIEU OF ROYALTY

     

    In
      consideration for the rights granted to ISO pursuant to this Agreement, ISO
      shall pay to IBt the following amounts:

    


    
      	
            	5.1.	
              License
                Fee:

            


    

    


    The
      License Fee amounts to $275,000 including the upfront payment of $50,000 as
      referred to in former Article 5.7 and a payment of $225,000 to be made no later
      than March 5, 2006 as referred to in the former Article 5.1; both of which
      payments have been made in their entirety.

    


    The
      License Fee shall not be refundable for whatever reason and shall in all cases
      be and remain the sole property of IBt.

    


    5.2
      Payment in lieu of Royalty:

    


    On
      the date of execution of the Amendment Agreement, ISO shall pay to IBt an amount
      of $225,000.

    


    The
      Payment in lieu of Royalty shall not be refundable for whatever reason and
      shall
      in all cases be and remain the sole property of IBt.

    


    
      	 	
              5.4.

            	
              Payments:

            


    

    


    The
      License Fee and the Payment in lieu of Royalty shall be paid to IBt in USD
      in
      Belgium on account number _________ at ING bank with IBAN number __________
      with mention “License Agreement”.

    


    
      	 	
              5.5

            	
              Payment
                of Purchase Price:

            


    

    


    All
      amounts due under this Agreement shall, if overdue, automatically bear interest
      until payment at a per annum rate of eight percent (8%) above the prime rate
      in
      effect at the European Central Bank published on the due date. The payment
      of
      such interest shall not foreclose IBt from exercising any other rights it may
      have resulting from any late payment.

    


    
      	 	
              5.6

            	
              Failure:

            


    

    


    Any
      failure or any delay by ISO of more than [30] days to fully pay any amount
      owed
      to IBt as specified in this Article 5 shall entitle IBt to terminate the
      Agreement in accordance with Article 14.1 below. In this case, IBt shall have
      a
      first right of refusal to purchase from ISO all of the equipment for production
      of the Products at book value and shall have access to the relevant records
      and
      books of ISO to check that book value, as provided in Article
      6.”

    


    
      	 	
              2.2

            	
              The
                Parties agree to delete Articles 6.2 and 6.3 in their
                entirety.

            


    


    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	 	
              3

            	
              CONSTRUCTION
                AND ABSENCE OF RETROACTIVE
                EFFECT

            


    

    


    
      	
            	3.1	
              All
                provisions of the License Agreement which are not affected by the
                Amendment Agreement remain in full force and
                effect.

            


    

    


    
      	 	
              3.2

            	
              The
                Amendment Agreement enters into force on the date of its execution
                by the
                Parties.

            


    

    


    
      	
            	3.3	
              The
                parties acknowledge and agree that the Amendment Agreement has no
                retroactive effect. As a consequence, none of the Parties will be
                entitled
                to claim reimbursement of any amount already paid as a result of
                the
                performance of the License Agreement so far or to set-off of any
                payment
                already made under the License Agreement as amended by the Amendment
                Agreement with any amount which is or will be due by any of them
                in the
                future.

            


    

    


    
      	
            	4	
              GOVERNING
                LAW AND JURISDICTION 

            


    

    


    This
      Amendment Agreement shall be governed by and construed and interpreted in
      accordance with the laws of the Grand Duchy of Luxemburg. Any litigation
      relating to the conclusion, validity, interpretation or performance of this
      Amendment Agreement, or of subsequent contracts or operations derived herefrom,
      as well as any other litigation concerning or related to the this Agreement,
      without any exception, shall be submitted to the exclusive jurisdiction of
      the
      Luxembourg Courts.

    


    AS
      WITNESS the
      hands
      of the duly authorized representatives of the Parties hereto the day and year
      first above written.

    


    Signed
      in Richland on 12 October 2007, in two original copies, each Party
      acknowledging having received one of these copies,

     

     

     

     

    


    
      	  
	 	  

	
              IBt

            	 	
              Iso

            
	 	 	 	 	 
	
              By

            	
                /s/
                John
                Carden

            	 	
              By

            	
                /s/
                Roger
                Girard

            
	 	 	 	 	 
	
              Name

            	
                John
                Carden

            	 	
              Name

            	
                Roger
                Girard

            
	 	 	 	 	 
	
              Capacity

            	
                Chairman
                of the
                Board

            	 	
              Capacity

            	
                Chairman/
                CEO

            


    

     

     

    


    ______________________________________