Document:

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                                     Form of
                              EMPLOYMENT AGREEMENT

     This Employment Agreement (the "Agreement") is dated September 14, 2001, by
and between Isonics Corporation, a California corporation (the "Company"), and
____________, an individual resident of the State of ___________ ("Employee"),
and is effective as set forth in Paragraph 3, below.

                                R E C I T A L S:

     The Company is engaged in various business activities as described in its
annual report on Form 10-KSB for the year ended April 30, 2001 and its quarterly
report on Form 10-QSB for the quarter ended July 31, 2001, and has recently
acquired a business manufacturing silicon-on-insulator and other wafers, all of
which involves the knowledge and use of certain intellectual property and other
confidential information of the Company for the conduct of the Company's
business (the "Business"); and

     The Company has offered employment to Employee for reasonable compensation
for Employee's duties, responsibilities and restrictions described in this
Agreement but also desires to obtain certain agreements from the Employee
regarding confidentiality, non-disclosure, and assignment of inventions.

     In consideration of the mutual agreements, promises and undertakings set
forth in this Agreement, and intending to be legally bound by this Agreement,
the parties hereto agree as follows:

     1.   POSITION. Employee will serve as ________ for the Company. Employee
shall serve in any additional position to which he is hereafter appointed by the
Board of Directors of the Company, but in any event shall not serve in any
capacity that is less than the position stated herein.

     2.   DUTIES. The Employee will perform the duties that the Board of
Directors of the Company and the President may from time to time reasonably
direct (the "Duties"). Employee will devote substantially all of the Employee's
full productive time, ability and attention to the Business during the term of
this Agreement and shall not directly or indirectly render services of a
business, commercial or professional nature to any other person or organization,
whether for compensation or not, without the prior written consent of the
Company. Employee will report to the President of the Company.

     3.   EMPLOYMENT PERIOD. (a) This Agreement shall become effective upon the
earliest of the following events (the "Effective Date"):

     (i)  The Company's receipt of Adequate Funding. For the purposes of this
     Agreement, "Adequate Funding" means when the Company has received equity
     financing of at least $2,000,000 (after deducting the expenses of obtaining
     such financing) or such lesser amount that is, in the Company's discretion,
     sufficient to carry out the business

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     plan of establishing the business of manufacturing silicon-on-insulator
     wafers and other silicon wafers in or near Troutdale, Oregon (the "Wafer
     Manufacturing Business").

     (ii) The Company commencing the Wafer Manufacturing Business at any
     location on a commercial scale.

     (iii) The Company providing written notice to Employee that this Agreement
     has become effective.

     (b)  The term of the employment pursuant to this Agreement shall be for a
period of five years beginning on the Effective Date (the "Employment Period").
Notwithstanding anything to the contrary contained herein, the Employment Period
is subject to termination pursuant to Sections 6 and 7 below.

     (c)  If this Agreement becomes effective prior to the date the Company has
received Adequate Funding, then Employee will be paid 60% of the Base Salary as
set forth in Section 4(a) below, with the remaining 40% being accrued and
deferred until the Company receives Adequate Funding, but for no longer than six
months. If any Base Salary is deferred, payment of the deferred Base Salary will
commence on the date the Company receives Adequate Funding (but in any event, on
a date not later than six months after the Effective Date of this Agreement),
and shall thereafter be paid in twelve, equal monthly (or in the Company's
discretion 24 equal semi-monthly) installments in addition to Employee's
Compensation as set forth in Section 4(a) below.

     4.   COMPENSATION. Subject to Sections 6, 7, 8, 9 and 10, as compensation
for Employee's services, and as compensation for Employee's covenants set forth
in this Agreement, the Company agrees as follows:

     (a)  BASE SALARY: The Company will pay Employee a base salary ("Base
          Salary") at a rate of $__________ per year. The payment of Base Salary
          will be in accordance with the Company's regular payroll practices and
          will be pro rated for any period less than a year. Employee's Base
          Salary will be reviewed at the end of each twelve month period of
          employment and may be modified from time to time by the Company, but
          in no event shall any such compensation adjustment reduce the base
          salary below the rate hereinabove specified. Nothing contained herein
          shall require the Company to increase Employee's salary or other
          compensation.

     (b)  BONUS. Employee shall be eligible to receive a performance bonus from
          time-to-time based on such factors as the Board of Directors may
          determine appropriate in light of the Company's operating results and
          other factors that may be identified by the Board of Directors.

     (c)  ADDITIONAL COMPENSATION. At the discretion of the Board of Directors
          of the Company (and without implying any obligation on the Company to
          award a bonus to Employee), Employee will be eligible to participate
          in any employment plans available to its employees, and may from time
          to time be awarded a cash bonus or bonuses, or other

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          incentive compensation, for services rendered or other contributions
          made to the Company during the term of his employment under this
          Agreement.

     (d)  BENEFITS. During the term of this Agreement, Employee also shall be
          entitled to receive such benefits as are made available to other
          personnel of the Company in comparable positions, with comparable
          service credit and with comparable duties and responsibilities. Such
          benefits shall be subject to the terms of the applicable plan
          documents, summary plan descriptions and/or employment policies and
          shall be subject to modification, amendment or revocation in
          accordance with the terms of such documents, policies and procedures.

     5.   HOLIDAYS; VACATION. Employee shall be entitled to enjoy paid time off
for Company holidays the same as employees of the Company generally, according
to the policies of the Company from time to time in effect. Employees shall be
entitled to paid vacation and personal time off in accordance with the Company's
policies.

     6.   TERMINATION BY COMPANY FOR CAUSE. The Company retains the right to
terminate Employee's employment at any time for "Cause" immediately upon written
notice to Employee. The Company's termination of Employee's employment will be
for "Cause" if and only if both

     (1) the Board of Directors of the Company reasonably determines that
     Employee has, during the term of Employee's employment, (i) breached or
     failed to perform in any material respect any reasonable and proper duty or
     obligation imposed upon him in connection with his employment or this
     Agreement, or breached any fiduciary duty to the Company, as to which the
     Company has given him not less than ten (10) days written notice, and which
     breach or failure has not been cured within any such period, (ii) committed
     acts of personal dishonesty that would have a reasonable likelihood of
     sustaining a claim made by the Company for damages in a court of competent
     jurisdiction, (iii) pled guilty or no contest or been convicted of a crime
     involving moral turpitude, whether or not committed during the term of
     employment, (iv) violated the provisions of Sections 11, 12, 13 or 14 of
     this Agreement, (v) committed any dishonest, unethical, fraudulent,
     disloyal or felonious act in respect of his duties to the Company, or (vi)
     committed any other act or series of acts that (in the Company's reasonable
     opinion) damages the Company's reputation in the financial community or any
     other community in which it cariries on business, and

     (2) the Board of Directors gives Employee written notice of such
     termination for Cause stating specifically the facts upon which the
     determination of Cause was made.

If the Company terminates Employee's employment for Cause:

     (a)  the Company will pay the Base Salary through the date of termination,
          prorated for any partial payroll period;

     (b)  the Company will pay the Employee for any accrued and unused vacation,
          if any, that Employee was eligible for at the date of termination.

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     7.   TERMINATION BY COMPANY NOT FOR CAUSE. The Company retains the right to
terminate Employee's employment at any time for any reason other than for Cause
by giving Employee written notice. In the event of such termination:

     (a)  At the same time the Company terminates the Employee pursuant to this
          Paragraph, (and provided the Employee has been employed by the Company
          for at least six months prior to the date of termination) the Company
          will pay the Employee six months Base Salary, but not more than the
          remaining term of this Agreement;

     (b)  At the same time the Company terminates the Employee pursuant to this
          Paragraph, the Company will pay the Employee for any accrued or unused
          vacation, if any, that Employee was eligible for at the date of
          termination.

The Company may require that Employee vacate the Company's premises at any time
during the notice period provided under Section 7.

     8.   RESIGNATION. Employee has the right to terminate Employee's employment
by giving the Company 10 business days advance written notice (a "Resignation").
The effect of Employee's Resignation will be the same as if the Company had
terminated Employee's employment for Cause, the date of termination being the
last day of the 10 business day notice period.

     9.   DEATH. If Employee's employment is terminated by Employee's death, the
Company will compensate the Employee's estate pursuant to Section 7, above, as
though the Company terminated the Employee's employment hereunder without Cause.

     10.  DISABILITY OR RETIREMENT OF EMPLOYEE. If Employee's employment is
terminated by "Disability" or "Retirement," the effect of such termination will
be the same as if Employee's employment had been terminated by Employee's death.
For purposes of this Agreement, "Disability" means a disability by reason of the
occurrence of an injury or disease (including mental illness) or a physical or
mental condition that, in the opinion of an appropriate physician chosen by the
Board of Directors of the Company, (i) results in Employee becoming unable
adequately to perform his customary duties for the Company and (ii) such
disability is expected to last more than one hundred eighty (180) days of which
Employee will be unable to perform a minimum of forty (40) hours per week of the
type of work described in Section 2 of this Agreement. For purposes of this
Agreement, "Retirement" means a severance from the Company's employment by the
Employee (i) who has attained his sixty-fifth birthday or (ii) who has completed
twenty (20) consecutive years as an employee of the Company.

     11.  NON-COMPETE. Employee hereby agrees that during the Employment Period
and (if, and only if the Employment Period is terminated pursuant to Paragraphs
6 or 8, above) through the period ending on the first anniversary of Employee's
actual date of termination, if Employee is, in fact, terminated pursuant to the
terms of this Agreement (collectively, the "Restrictive Period"), he shall not,
for any reason whatsoever, directly or indirectly, whether individually or as an
officer,

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director, shareholder, owner, partner, joint venturer, employee, independent
contractor, consultant or advisor to or of any entity, or in any other capacity:

     (a)  engage, participate or invest in any business which is competitive
          with the Business; provided, however, that nothing contained herein
          shall be construed to prevent Employee from investing in up to 5% of
          the outstanding stock of any competing corporation that is
          widely-traded and listed on a recognized national, international or
          regional securities exchange or traded in the U.S. over-the-counter
          market, but only if Employee is not actively involved in and does not
          render consulting services to the business of said corporation, or

     (b)  sell or provide any competitive products or services relating to the
          Business, to, or solicit for the purpose of selling or providing any
          competitive products or services relating to the Business, to, any
          person or entity that was a customer of the Company at any time during
          the one-year period ending on the last day of the Employment Period
          (the "Termination Date") or at any time during the period ending on
          the one-year anniversary of Employee's actual date of termination, if
          Employee is, in fact, terminated pursuant to the terms of this
          Agreement, or that was actively being solicited by the Company to
          become a customer of the Company at any time during such period.

     12.  The foregoing Paragraph 11 does not apply after the termination of the
Employment Period if the Employment Period is terminated for any reason other
than those set forth in Paragraphs 6 of 8, above. NONSOLICITATION. Employee
further agrees, during the Restrictive Period, notwithstanding any allegation of
breach of this Agreement, not to solicit, hire, influence or attempt to
influence any employee of the Company to terminate his or her employment or
other contractual relationship with the Company for any reason including,
without limitation, working for a competitor. Additionally, Employee agrees that
during the Restrictive Period Employee will not directly or indirectly attempt
to solicit or conduct business with any person or entity that is a client,
customer or active prospect of the Company at the time of Employee's termination
if such business would be in competition with the Business. The terms "client,"
"customer" and "active prospect" include, but are not limited to, any person or
entity solicited or contacted by Employee or the Company or any person or entity
to whom services have been rendered by Employee or the Company directly or
indirectly during the two (2) years preceding Employee's termination. Employee
acknowledges Employee's duty, both by contract and common law, not to interfere
with contractual relationships and not to use proprietary and confidential
information about customers or clients of the Company for the advantage of any
person or entity other than the Company.

     13.  NONDISCLOSURE OF PROPRIETARY CONFIDENTIAL INFORMATION. Employee
acknowledges that, during the Employment Period, Employee will obtain special
training and will have access to and become familiar with various trade secrets
and confidential information consisting of, among other items: trade secrets,
methods of operation, techniques, designs, processes, technologies, compilations
of information, past, present and prospective customer lists, records, and
specifications that are owned and commercially beneficial to the Company,
including any compilation of various trade secrets or data derived from such
information (collectively, the "Proprietary Information"). The Proprietary
Information does not include information which at the time it is disclosed by
the

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Employee was already in the public domain. If Employee is required by law to
disclose Proprietary Information, Employee shall notify the Company, in writing,
of the nature of such disclosure and the Proprietary Information to be
disclosed, as soon as is possible and/or practical, and permit the Company the
opportunity to contest or limit such disclosure.

           Employee agrees that Employee will not disclose, either during
Employee's employment with the Company or after Employee's termination for
whatever reason, any Proprietary Information to any person or entity, except in
the course of Employee's duties on behalf of the Company, and that, similarly,
Employee will not use such information for the benefit of any person or entity
other than the Company at any time. Employee agrees that upon Employee's
termination, Employee will deposit with or return to the Company all copies (in
any media, including, without limitation, electronic storage media) of
documents, records, notebooks or any other information or documentation of the
Company's Proprietary Information, and all derivatives thereof, whether the
Proprietary Information or documentation was developed or prepared by Employee
or by others. Employee acknowledges that this covenant of nondisclosure is an
integral term of this Agreement and is given in consideration of Employee's
employment and the other consideration granted in this Agreement.

     14.  DISCLOSURE OF DEVELOPMENTS. Employee agrees to hold in complete trust
for the benefit of the Company, and to disclose promptly and fully to the
Company in writing, and hereby assigns to the Company any and all inventions,
discoveries, ideas, concepts, improvements, copyrightable works (including moral
rights, if any) and other developments conceived, made, discovered or developed
by him solely or jointly with others, during the term of his employment by the
Company, whether during or outside of usual working hours and whether on the
Company's premises or not, which relate in any manner to the Business
(collectively, the "Developments").

     (a)  OWNERSHIP OF DEVELOPMENTS. Any and all Developments shall be the sole
          and exclusive property of the Company, whether or not patentable or
          copyrightable, and Employee agrees that he will assist and fully
          cooperate in every way, at the Company's expense, in securing,
          maintaining and enforcing, for the benefit of the Company or its
          designee, patents, copyrights, or other type of proprietary or
          intellectual property protection for the Developments in any and all
          countries. Employee acknowledges and agrees that each Development, to
          the fullest extent permitted by law, is a "work made for hire," as
          defined by the federal copyright laws, and therefore all copyrights in
          and to such works are and will be owned by the Company. To the extent
          that Employee authors any copyrightable work in any medium while
          employed by the Company pursuant to this Agreement that relates or
          pertains in any way to the Company or any of the operations or
          activities of the Company, and which is not a "work made for hire,"
          Employee hereby assigns all right, title and interest, including, but
          not limited to, all rights of copyright (including moral rights, if
          any), in and to such works to the Company.

     (b)  ADDITIONAL ACTS BY EMPLOYEE. Employee further agrees at the request of
          the Company (but without additional compensation from the Company
          during his employment by the Company) to execute any and all papers
          and (at the expense of the Company) perform all lawful acts that the
          Company deems necessary for the

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          preparation, filing, prosecution and maintenance of applications for
          United States and foreign letters patent, or for United States and
          foreign copyrights, on the Developments, and to execute such
          instruments as are necessary or convenient to assign to the Company,
          its successors, assigns, or nominees, all of Employee's right, title
          and interest in the Developments and the like, so as to establish,
          maintain, or perfect, in the Company, its successors, assigns, or
          nominees, the entire right, title and interest to the Developments,
          and also to execute any instruments necessary or which the Company may
          deem desirable in connection with any continuation, renewal, or
          reissue thereof, or in the conduct of any proceedings or litigation in
          regard to such Developments.

     15.  EMPLOYEE'S REPRESENTATIONS. Employee represents and warrants that he
is free to enter into this Agreement and to perform each of the terms and
covenants of it. Employee represents and warrants that he is not restricted or
prohibited, contractually or otherwise, from entering into and performing this
Agreement, and that his execution and performance of this Agreement is not a
violation or breach of any other agreement between Employee and any other person
or entity.

     16.  LIFE INSURANCE. The Company may at its discretion and at any time
apply for and procure as owner and for its own benefit and at its own expense,
insurance on the life of Employee in such amounts and in such form or forms as
the Company may choose. Employee shall cooperate with the Company in procuring
such insurance and shall, at the request of the Company, submit to such medical
examinations, supply such information and execute such documents as may be
required by the insurance company or companies to whom the Company has applied
for such insurance. Employee shall have no interest whatsoever in any such
policy or policies, except that, upon the termination of Employee's employment
hereunder, Employee shall have the privilege of purchasing any such insurance
from the Company for an amount equal to the actual premiums thereon previously
paid by the Company.

     17.  ASSIGNMENT. No party hereto may assign or delegate any of its rights
or obligations hereunder without the prior written consent of the other party
hereto. Except as otherwise expressly provided herein, all covenants and
agreements contained in this Agreement by or on behalf of any of the parties
hereto shall bind and inure to the benefit of the respective legal
representatives, heirs, successors and assigns of the parties hereto whether so
expressed or not.

     18.  LIMITATIONS. This Agreement shall not confer any right or impose any
obligation on the Company to continue the employment of Employee in any
capacity, or limit the right of the Company or Employee to terminate Employee's
employment.

     19.  ATTORNEYS' FEES AND COSTS. If any action in arbitration or at law or
in equity is necessary to enforce or interpret the terms of this Agreement, the
prevailing party will be entitled to reasonable attorneys' fees, costs and
necessary disbursements in addition to any other relief to which he or it may be
entitled.

     20.  WAIVER OF BREACH. The actual or apparent waiver by either party to
this Agreement of a breach of any provision of this Agreement will not operate
or be construed as an actual or

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constructive waiver of that breach or any subsequent breach by any party.
Waivers are not effective unless in writing and signed by the party granting the
waiver.

     21.  MULTIPLE COUNTERPARTS. This Agreement may be executed in counterparts,
each of which for all purposes is to be deemed an original, and all of which
constitute, collectively, one agreement. In making proof of this Agreement, it
will not be necessary to produce or account for more than one counterpart of
this Agreement. Furthermore, a photocopy of any counterpart will be valid and
have the same effect as an original.

     22.  SEVERABILITY AND SAVINGS CLAUSE. If any one or more of the provisions
or subjects contained in this Agreement is for any reason held to be invalid,
illegal or unenforceable in any respect, such invalidity, illegality or
unenforceability will not affect the validity and enforceability of any other
provisions or subjects of this Agreement, and it is the intention of the parties
that there shall be substituted for such invalid, illegal or unenforceable
provision a provision as similar to such provision as may be possible and yet be
valid, legal and enforceable. Further, should any provisions of this Agreement
ever be reformed or rewritten by a judicial body, those provisions as rewritten
will be binding, but only in that jurisdiction, on Employee and the Company as
if contained in the original Agreement.

     23.  SUCCESSORS; SURVIVAL; AFFILIATES. This Agreement and the rights and
obligations under this Agreement will be binding upon and inure to the benefit
of the parties to this Agreement and their respective legal representatives, and
will also bind and inure to the benefit of any successor of the Company by
merger or consolidation or any assignee of all or substantially all of the
Company's assets. Except to any such successor or assignee of the Company,
neither this Agreement nor any rights or benefits under this Agreement may be
assigned by either party to this Agreement. Each covenant on the part of
Employee contained in Sections 11, 12, 13 and 14 shall be construed as an
agreement independent of any other provision of this Agreement and shall survive
the termination of this Agreement, pursuant to the terms contained therein. The
existence of any claim or cause of action of Employee against the Company,
whether predicated on this Agreement or otherwise, shall not constitute a
defense to the enforcement by the Company of any such covenant. The protective
covenants in Sections 11, 12, 13 and 14 shall also inure to the benefit of the
Company's affiliates (as hereinafter defined) and these covenants shall be
enforceable against Employee by each of such affiliates as third party
beneficiaries. An "affiliate" of the Company is any person or entity that
directly, or indirectly through one or many intermediaries, controls or is
controlled by, or is under common control with, the Company.

     24.  ENTIRE AGREEMENT. This Agreement supersedes any and all other
agreements, either oral or in writing, between the parties with respect to
Employee's employment by the Company and contains all of the covenants and
agreements between the parties with respect to such employment. This Agreement
can only be changed by the parties in writing, executed by the party against
whom enforcement of any modifications may be sought.

     25.  GOVERNING LAW AND VENUE . This Agreement will be governed by and
construed in accordance with the substantive laws of the State of Colorado
without regard to conflict of law provisions. Venue for any disputes shall be
the federal district courts in Portland, Oregon.

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     26.  NOTICES. Any notice under this Agreement will be in writing and will
be deemed to have been duly given when delivered personally or three (3) days
after such notice is deposited in the United States mail, registered, postage
prepaid, and addressed, to the Company, at its principal office, or to Employee
at Employee's last permanent address as shown on the Company's records.

     27.  REMEDIES.

     (a)  INJUNCTIVE RELIEF. Employee agrees that a breach or threatened breach,
          based on reasonable and good faith evidence of a breach on Employee's
          part, of any covenant contained in Sections 11, 12, 13 or 14 will
          cause irreparable damage to the Company. For that reason, Employee
          further agrees that the Company is entitled as a matter of right to an
          injunction from any court of competent jurisdiction, restraining any
          further violation of any of such covenants by Employee, Employee's
          future employers, employees, partners, agents or any person or entity
          related, directly or indirectly, to Employee. The right to an
          injunction is in addition to whatever other remedies the Company may
          have, including specifically the recovery of damages.

     (b)  ARBITRATION. Except to the extent provided in Section 27(a) above, any
          controversy of any nature whatsoever, including but not limited to
          tort claims or contract disputes, between the parties to this
          Agreement (including their directors, officers, employees, agents,
          successors, assigns, heirs, executors and beneficiaries) relating to
          the formation, execution, interpretation, breach or enforcement of
          this Agreement, shall be submitted to arbitration before the
          JAMS-Endispute ("JAMS"), in accordance with their rules then in effect
          and the substantive law of the State of Colorado and the United
          States. The parties agree that any party requesting arbitration of any
          dispute under this section must give formal written notice of the
          party's demand for arbitration within one hundred twenty (120) days
          after such dispute first arises and failure to timely communicate the
          arbitration notice shall constitute a waiver of such dispute. Each of
          the parties to this Agreement shall appoint one person as an
          arbitrator to hear and determine such disputes, and if they should be
          unable to agree, then the two arbitrators shall choose a third
          arbitrator from a panel made up of experienced arbitrators selected
          pursuant to the procedures of the JAMS and, once chosen, the third
          arbitrator's decision shall be final, binding and conclusive upon the
          parties to this Agreement. The arbitrators shall be bound in their
          deliberations and their decision by the terms of this Agreement and
          any applicable law. The arbitrators may not award punitive or
          exemplary damages, but will have the power to award prejudgment
          interest and attorneys' fees to the prevailing party. The award of the
          arbitration panel may be confirmed by any state or federal court of
          competent jurisdiction, and may be challenged only upon the grounds
          provided in Section 10 of the Federal Arbitration Act, Title 9, United
          States Code. This agreement to arbitrate shall survive the execution
          of this Agreement. BY THEIR EXECUTION OF THIS AGREEMENT, EACH PARTY TO
          THIS AGREEMENT CONSENTS, ON BEHALF OF HIMSELF OR ITSELF AND THEIR
          RESPECTIVE SUCCESSORS, HEIRS AND ASSIGNS, TO SUCH BINDING ARBITRATION
          IN ACCORDANCE WITH THE TERMS OF THIS SECTION. THE RIGHT TO ARBITRATE
          IS INTEGRAL TO AND NOT SEVERABLE FROM THIS AGREEMENT. THE PARTIES
          ACKNOWLEDGE THAT THEY HAVE READ THIS ARBITRATION

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          AGREEMENT AND KNOWINGLY CONSENT TO ITS CONSEQUENCES, INCLUDING THE
          WAIVER OF THE RIGHT TO LITIGATE CERTAIN DISPUTES. The expenses of such
          arbitration will be borne by the losing party or in such proportion as
          the arbitrators will decide. A material or anticipatory breach of any
          section of this Agreement will not release either party from the
          obligations of this Section 27(b).

     The parties hereto have executed the Agreement as of the date first
mentioned above.

                                        COMPANY:

                                        ISONICS CORPORATION

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

                                        EMPLOYEE:

                                        --------------------------------------
                                        Name:
                                        Address:

                                        Telephone:
                                        Facsimile:

                                       10<Page>

                                 LEASE AGREEMENT
                                      WITH
                               OPTION TO PURCHASE

     This Lease Agreement with Option to Purchase is executed on September 28,
2001, but is effective as of Commencement Date set forth below, and is between
Silicon Evolution, Inc. (collectively referred to as "Lessor") and Isonics
Corporation, a California corporation. Therefore, in consideration of the mutual
promises and obligations set forth below, the parties agree as follows:

1.   FUNDAMENTAL LEASE PROVISIONS AND DEFINITIONS.

LESSOR:                        Silicon Evolution, Inc.

LESSOR'S ADDRESS:              12013 NE 99th Street
                               Suite 1600
                               Vancouver, WA 98682
                               Tel: 360-604-5080

ISONICS:                       Isonics Corporation

ISONIC'S ADDRESS:              5906 McIntyre Street
                               Golden, CO 80403
                               Attn: President
                               Tel: 303-279-7900
                               Fax: 303-279-7300

LOCATION OF EQUIPMENT:         12013 NE 99th Street
                               Suite 1600 and neighboring buildings
                               Vancouver, WA 98682

INITIAL LEASE TERM:            Twelve Months

COMMENCEMENT DATE:             To be determined by written notification from
                               Isonics to Lessor

TERMINATION DATE:              Twelve months after the Commencement Date

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RENT:                          $30,000 per month (subject to adjustment in
                               accordance with Sections 5.2 and 5.3)

2.   LEASED EQUIPMENT. Lessor hereby leases to Isonics and Isonics hereby leases
from Lessor the Equipment described on Exhibit "A" attached hereto and by this
reference incorporated herein. The Equipment is referred to herein as the
"Leased Equipment."

3.   TERM.

     3.1 The Initial Lease Term shall commence on the Commencement Date and
expire at midnight on the Termination Date, unless sooner terminated or extended
as hereinafter provided. When used herein, the term "Commencement Date" is the
earlier of the following:

     (a) date Isonics has obtained equity financing that is, in Isonics'
     discretion, sufficient to carry out the business of manufacturing
     silicon-on-insulator and other silicon wafers as the term "Adequate
     Funding" is used in that certain agreement between Isonics and Lessor dated
     September 14, 2001 which relates to a license between Lessor and Isonics
     and certain other related transactions as described therein; and

     (b) the date Isonics takes possession of and commences use of the leased
     assets.

     3.2 Isonics may, upon fifteen days written notice to Lessor, renew the
Initial Lease Term for up to two additional terms, each consisting of a 12 month
period, at the rate of $30,000 per month.

     3.3 The Lessor may terminate this lease upon fifteen days written notice to
Isonics if the Commencement Date has not occurred on or before November 30,
2001. If the Lessor sends such written notice to Isonics, Isonics may establish
the Commencement Date during such fifteen day period and, in such case, all
other provisions of this Lease will control.

4.   OBLIGATIONS OF LESSOR.

     4.1 Upon payment by Isonics of the Rent and other Obligations of Isonics as
set forth herein, and upon the observance and performance of all the covenants,
terms, and conditions for which Isonics is responsible, Isonics shall peaceably
and quietly hold and enjoy the Leased Equipment for the entire Term without
hindrance or interruption by Lessor or any other person or persons lawfully or
equitably claiming by, through, or under Lessor's control, nevertheless, to the
terms and conditions of this Lease.

     4.2 During the term of this Lease, Lessor shall not voluntarily,
involuntarily, directly, indirectly, or by operation of law assign, transfer, or
encumber the Leased Equipment or any portion thereof or any interest therein
without the prior written consent of Isonics.

                                       2
<Page>

5.   OBLIGATIONS OF ISONICS. During the Lease Term, Isonics shall pay Rent and
all Operating Costs (as hereinafter defined) on or before the date first due.

     5.1 RENT. Isonics shall pay Rent (including any Additional Rent) on a
monthly basis, on or before the first day of each month during the Lease Term.
Monthly Rent shall be as set forth above. Rent shall be delinquent, and this
Lease shall be in default if Lessor has not received the Rent payment by the
tenth day of the month for which the Rent is due. At Isonics's or Lessor's
request, Isonics will make payments to Lessor by wire transfer of funds to an
account designated by Lessor.

     (a) As Additional Rent, Isonics will pay when due all Personal Property
     Taxes. As used in this Lease, the term "Personal Property Taxes" shall mean
     any and all taxes, charges and assessments (special or general, ordinary or
     extraordinary) levied with respect to the Leased Equipment.

     (b) As Additional Rent, Isonics will be responsible for all operating and
     maintenance expenses for the Leased Equipment.

     5.2 DEDUCTIONS FROM RENT. Isonics is entitled to reduce the Rent to the
extent any of the Leased Equipment becomes unavailable to Isonics through no
fault of Isonics, whether such action results from a vendor or financer of the
Leased Equipment taking possession of the Leased Equipment (or any portion
thereof) because of a failure by the Lessor to make necessary payments or
because the Leased Equipment (or any portion thereof) fails due to normal wear
and tear. The amount of the deduction shall be as described on Exhibit "A," or
if no specific deduction is reflected on Exhibit "A," an amount equal to the
fair lease value of the equipment that failed.

     5.3 RENT DEFERRAL. If Isonics commences this Lease before receiving
Adequate Funding, then Isonics may defer payment of Rent for the first three
months of this Lease. In that event, Isonics will pay Rent at the rate of
$40,000 per month for the remaining nine months of the initial term of this
Lease.

6.   Not included.

7.   NO LIENS. Isonics shall keep the Leased Equipment clear from any and all
liens arising out of any work performed, materials furnished or obligations
incurred by or for Isonics.

8.   SECURITY. Isonics, at its own expense, shall provide adequate security for
the Leased Equipment.

                                       3
<Page>

9.   THE LEASED EQUIPMENT. Isonics acknowledges that the Leased Equipment is
located in premises that are leased by third parties to Lessor, although Lessor
is in default in certain of its obligations under leases to those third parties.
Lessor represents that it has had conversations about these defaults and based
on those discussions believes that Isonics will be able to negotiate alternative
arrangements with the third parties. Isonics agrees to use its best efforts to
negotiate accommodation with these third parties, but to the extent Isonics must
pay the third parties (or provide other value to the third parties) in excess of
the amount set forth in the leases for such premises on a going-forward basis
from the Commencement Date, Isonics may pay such expenses and add the amount so
paid to the amounts advanced by Isonics to the Lessor under a loan and security
agreement entered into between the parties.

10.  COVENANTS AND WARRANTIES. Isonics and Lessor agree and warrant as follows:

     10.1 At the Commencement Date, the Lessor warrants to Isonics that the
Leased Equipment is in good repair and operable physical condition, given the
age of the and prior use of the Leased Equipment. At the Commencement Date, the
Lessor is not aware of any material maintenance or repairs that need to be made
to the Leased Equipment in order to make any portion of the Leased Equipment
usable or operational.

     10.2 Isonics will operate the Leased Equipment in accordance with the
operating instructions for the Leased Equipment and in accordance with the
historical practice pursuant to which the Lessor previously operated the Leased
Equipment.

     10.3 Upon the termination of this Lease for any reason, Isonics will return
the Leased Equipment to the Lessor.

11.  INSURANCE. Isonics shall, during the entire term hereof, keep in full force
and effect a policy of general liability and property damage insurance with
respect to the Leased Equipment, and the business operated by Isonics, in which
the limits of liability per occurrence and in which the limit of property damage
liability shall not be less than reasonably required for the nature of the
business being conducted.

12.  DAMAGE OR DESTRUCTION. In case of damage to or destruction of the Leased
Equipment by fire, vandalism, malicious mischief or any other casualty, Isonics
shall be entitled to all proceeds from any insurance policies.

13.  INDEMNIFICATION. Isonics covenants and agrees to protect and save Lessor
harmless and indemnified against and from any penalty or damage or charges
imposed for any violation of any laws or ordinances, either occasioned by
Isonics in connection with its usage of the Leased Equipment. Isonics further
agrees to protect, indemnify and save Lessor harmless from and against any and
all claims, and against any and all loss, cost, damage or expense, including

                                       4
<Page>

without limitation, reasonable attorneys' fees, arising out of any failure of
Isonics in any respect to comply with and perform all the requirements and
provisions hereof.

13.  IMPROVEMENTS AND ALTERATIONS. Isonics has the right to make and Lessor
consents to Isonics making all alterations, installations, additions, and
improvements ("Improvements") necessary for the operation or maintenance of the
Leased Equipment. Improvements by Isonics shall be made at Isonics's sole cost
and expense.

14.  DEFAULT BY ISONICS AND RIGHTS OF LESSOR.

     14.1 DEFAULTS. If Isonics fails to perform any covenant, term, agreement or
condition of this Lease within 30 days after notice from Lessor (provided,
however, that if the nature of such default other than for nonpayment is such
that the same cannot reasonably be cured within such 30-day period, Isonics
shall not be deemed in default if Isonics shall commence such cure within said
30-day period and thereafter diligently prosecutes the same to completion), then
Lessor, in addition to all other rights and remedies available to Lessor by law
or by other provisions hereof, may, without process, immediately remove all
persons and property, and, at Lessor's option, terminate this Lease as to all
future rights of Isonics.

     14.2 REMEDIES

          (a)  Isonics hereby agrees to pay Lessor and to indemnify Lessor for
all reasonable attorneys' fees and expenses incurred in enforcing any of the
terms of this Lease or any other rights or remedies of Lessor.

          (b)  To the extent that Isonics fails to pay any amount due hereunder
on or before the date such payment was due (including Rent), such amount will be
considered to be additional Rent (unless the default relates to the payment of
Rent) and Isonics will be obligated to pay Lessor, at Lessor's discretion, an
amount equal to 5% or less of such Rent or additional Rent on demand by Lessor.
The additional amounts required by this Paragraph shall also be considered
additional Rent and shall be added to and included within Rent as such are
incurred.

15.  OPTION TO PURCHASE: By executing this Lease, Lessor grants Isonics the
right to purchase the Leased Equipment, or any portion thereof, at any time
during this Agreement for a price equal to the "orderly liquidation value" as
determined by a third party appraiser acceptable to both Lessor and Lessee. If
the Lessee exercises this option during the first twelve months of this lease,
the remaining lease payments due during the first twelve months of this lease
will be added to the "orderly liquidation value."

16.  MISCELLANEOUS PROVISIONS.

                                       5
<Page>

     16.1 HEADINGS. The titles to sections of this Lease are not a part of this
Lease and shall have no effect upon the construction or interpretation of any
part hereof.

     16.2 SUCCESSORS AND ASSIGNS. All of the covenants, agreements, terms and
conditions contained in this Lease shall inure to and be binding upon Lessor and
Isonics and their respective successors and assigns.

     16.3 NO PARTNERSHIP. Lessor does not in any way or for any purpose become a
partner or joint venturer of, or member of a joint enterprise with, Isonics in
the conduct of its business. The provisions of this Lease providing for Isonics
payment of Rent and Additional Rent, are included solely for the purpose of
providing a method whereby the Rent is to be measured and ascertained.

     16.4 NON-WAIVER. Waiver by Lessor or Isonics of any breach of any term,
covenant or condition herein contained shall not be deemed to be a waiver of
such term, covenant or condition of this Lease, regardless of Lessor's or
Isonics's knowledge of such preceding breach at the time of acceptance or
payment of Rent.

     16.5 ENTIRE AGREEMENT. Except as otherwise set forth in this Lease, this
Lease contains all covenants and agreements between Lessor and Isonics relating
in any manner to the Rent, Isonics's use of the Leased Equipment, and other
matters set forth in this Lease.

     16.6 SEVERABILITY. Any provision of this Lease which shall prove to be
invalid, void or illegal shall in no way affect, impair or invalidate any other
provision hereof and the remaining provisions hereof shall nevertheless remain
in full force and effect. If the intent of any section of this Lease so
indicate, the obligations of Lessor and Isonics pursuant to such section of this
Lease shall survive the termination of this Lease.

     16.7 NO ACCORD AND SATISFACTION. No payment by Isonics or receipt by Lessor
of a lesser amount than Rent, and other charges stipulated herein shall be
deemed to be other than on account of the earliest stipulated Rent or other
charges, nor shall any endorsement or statement on any check or any letter
accompanying any check or payment as Rent be deemed an accord and satisfaction,
and Lessor shall accept such check or payment without prejudice to Lessor's
right to recover the balance of such Rent, and other charges or pursue any other
remedy in this Lease.

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

                                       6
<Page>

     16.9 FORCE MAJEURE. Time periods or deadlines for Lessor's or Isonics's
performance under any provisions of this Lease (except for the payment of money)
shall be extended for periods of time during which the nonperforming party's
performance is prevented due to circumstances beyond the party's control,
including, without limitation, labor disputes, embargoes, governmental
restrictions or regulations, inclement weather and other acts of God, war or
other strife.

     16.10 APPLICABLE LAW. The laws of the State of Colorado shall govern the
validity, performance, and enforcement of this Lease. Any action arising or that
may be deemed to arise under this lease shall be brought in the Jefferson
County, Colorado.

     16.11 ATTORNEYS' FEES. In any action brought to enforce the terms and
conditions of this Lease, the prevailing party shall be entitled, as part of its
award, to reasonably attorneys' fees incurred.

     IN WITNESS WHEREOF, the parties hereto have executed or caused this Lease
to be executed this 10th day of September, effective as of the day and year
first above written.

     LESSOR                             By
                                           -----------------------------------
     Silicon Evolutions, Inc.           Hans Walitzki, Vice President

               and                      Ralph Ahlgren, President

     ISONICS                            By
                                           -----------------------------------
     Isonics Corporation                James E. Alexander, President

                                       7

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