Document:

Exhibit 10.1

WAIVER
AGREEMENT

THIS WAIVER AGREEMENT
(this “Agreement”), dated as of February 19, 2007, by and among ISONICS CORPORATION, a California
corporation (the “Company”), and Cornell Capital Partners, L.P.
(individually, a “Buyer” or collectively “Buyers” and itself the
holder of more than a majority of the Registrable Securities, the 6%
Debentures, and the Warrants (all as defined below)).

WITNESSETH

WHEREAS, the Buyers
purchased 6% convertible debentures aggregating $16,000,000 in principal amount
(the “6% Debentures”) on and after May 30, 2006.

WHEREAS, the agreements by which
the Buyers purchased such debentures and received certain common stock purchase
warrants exercisable at $2.00 per share ($8.00 post reverse-stock split (“post-split”),
$1.75 per share ($7.00 post-split), and $1.25 ($5.00 post-split) per share
(collectively the “6% Debenture Warrants”) imposed certain obligations upon the
Company which the Company has attempted to meet in good faith and using its
best efforts.

WHEREAS, certain of the Company’s
efforts have been frustrated by regulatory interpretations, and the Buyers are
willing to waive certain compliance requirements.

WHEREAS, the parties also wish
to enter into other agreements to facilitate the Company’s continuing operations.

NOW, THEREFORE, in
consideration of the mutual covenants and other agreements contained in this
Agreement and for other good and valuable consideration, the receipt and
adequacy whereof is hereby acknowledged, the Company and the Buyer(s) hereby
agree as follows:

1.     WAIVERS AND AGREEMENTS

(a)           Section
4(e) of the Securities Purchase Agreement dated May 30, 2006 to which the
Company and the Buyer(s) were a party (the “SPA”), Section 3(d)(i) of the 6%
Debentures, and Section 3(c) of the 6% Debenture Warrants required that (among
other things), no later than December 31, 2006, the Company shall take all
action reasonably necessary to reserve such number of shares of Common Stock as
shall be necessary to effect the issuance of the Conversion Shares (as defined
in the SPA).  The Buyer(s) acknowledges
that this action was not taken prior to December 31, 2006, but was taken on
January 4, 2007.  The Buyer(s)
acknowledges that this reservation was accomplished and waives the December 31,
2006 compliance period.

(b)           Section
4(f) of the SPA required that (among other things), the Company shall maintain
the authorization for quotation on the Nasdaq Capital Market of the Company’s
no par value common stock (the “Common Stock”). 
The Buyer(s) are aware that the Company has received a Staff
Determination Letter advising the Company that its Common Stock is subject to
de-listing from the Nasdaq Capital Market. 
The Buyer(s) understand that the Company has appealed that determination
pursuant to the Nasdaq Marketplace Rules, but the 

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Company cannot offer any assurance that it will be successful in
maintaining such listing.  The Buyer(s)
waives the requirement in said Section 4(f) that the Company must maintain the
listing of its Common Stock on the Nasdaq Capital Market, but retains the
requirement that the Company must use its best efforts to maintain such listing
and, if the Company loses its Nasdaq Capital Market Listing, the Company agrees
to be quoted on the OTC Bulletin Board and to maintain such listing.

(c)           Section
4(m) of the SPA and Section 3(a) of the Investor Registration Rights Agreement
(as that term is defined in the SPA) required that (among other things), the
Company shall obtain shareholder approval of an increase in the Company’s
authorized capitalization to not less than 175,000,000 common shares by not
later than October 31, 2006.  The
Buyer(s) acknowledge that the Company obtained such approval on January 2,
2007, and waives the October 31, 2006, compliance period.

(d)           Section
4(n) of the SPA and Section 3(b) of the Investor Registration Rights Agreement
required that (among other things), the Company shall, not later than November
30, 2006, file an amended Registration Statement to increase the number of
shares registered to the Total Transaction Shares (as defined in the SPA), and
to obtain effectiveness of such registration statement by not later than
January 15, 2007.  The Buyer(s)
acknowledge that the Company has met neither the filing requirement nor the
effectiveness requirement, and waives the Company’s obligation to do so and any
penalties and charges relating to such failures.  The Company and the Buyer(s) agree that the
Company will undertake to file a registration statement for the Total
Transaction Shares (or the maximum shares that may be registered as advised by
the United States Securities and Exchange Commission (the “SEC”)) within
60 calendar days of receipt of written notification from the Buyer(s)
requesting that such registration statement be filed and that the Company shall
use its best efforts to obtain the effectiveness for such registration with in
45 calendar days of its filing.  In the
event such registration statement is filed and declared effective for a number
of shares less than the Total Transaction Shares, the Company and Buyer agree
that the Company shall, within sixty (60) calendar days of receipt of written
notification from the Buyer, file additional registration statements for the
maximum shares that may be registered as advised by the SEC until such time as
the Total Transaction Shares have been registered.

(e)           Section
2(b) of the Investor Registration Rights Agreement required that (among other
things), the Company shall obtain effectiveness of the Initial Registration
Statement (as defined therein) within 120 days of May 30, 2006, and the Amended
Registration Statement (as defined therein) within 45 days from the date
filed.  The Buyer(s) acknowledge that the
Company met neither the effectiveness requirement for the Initial Registration
Statement nor the filing requirement nor the effectiveness requirement for the
Amended Registration Statement, and waives the Company’s obligation to do so
and any and all Liquidated Damages (as that term is defined in Section 2(c) of
the Investor Registration Rights Agreement) that may have accrued or may in the
future accrue solely as a result of such non-compliance with the filing of the
Initial Registration Statement and Amended Registration Statement.  The Company and the Buyer(s) agree that the
Company will undertake to file a registration statement for the Total
Transaction Shares (or the maximum shares that may be registered as advised by
the SEC) within 60 calendar days of receipt of written notification from the
Buyer(s) requesting that such registration statement be filed and that the
Company shall use 

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its best efforts to obtain the effectiveness for such registration with
in 45 calendar days of its filing, as well as such additional registration
statements as may be necessary for the registration of the Total Transaction
Shares as referenced in Section 1(d) above.

(f)            Section
3(c) of the Investor Registration Rights Agreement required that (among other
things), the Company shall increase the total number of shares registered in
certain circumstances upon determining that all Registrable Securities are
issued and there remains an amount due under the 6% Debentures.  The Company and the Buyer(s) agree that the
Company will undertake to file a registration statement for the Total
Transaction Shares (or the maximum shares that may be registered as advised by
the SEC) within 60 calendar days of receipt of written notification from the
Buyer(s) requesting that such registration statement be filed and that the
Company shall use its best efforts to obtain the effectiveness for such registration
with in 45 calendar days of its filing.

(g)           The
Buyer(s) understand that the Company is restructuring its management and, in
order to compensate new, continuing, and exiting officers, will offer stock
options in an amount not to exceed 3.5 million shares pursuant to a plan (the “2007
Restructuring Equity Plan”) to be approved by the Company’s compensation
committee (which consists of independent directors), the Board of Directors and
the shareholders.  The Buyer(s) waives
any adjustment to the conversion price of its 6% Debentures or to the exercise
price of its 6% Debenture Warrants, or to the number of shares to be issued
pursuant to the conversion of the 6% Debentures or the exercise of its 6%
Debenture Warrants in connection with options granted pursuant to the 2007
Restructuring Equity Plan.

(h)           The
6% Debentures held by the Buyer(s) provide the holders with certain rights of
first refusal and a requirement that the holders consent to certain equity
financings or debt financings.  The
Buyer(s) (being the holders of all of the outstanding 6% Debentures and the 6%
Debenture Warrants) hereby consent to the issuance by the Company of securities
in exchange for an investment by accredited investors only in an amount of up
to $2,000,000, provided that such offering by the Company and investment by
accredited investors is in substantially identical terms as the outstanding 6%
Debentures and 6% Debenture Warrants and the Transaction Documents (as defined
in the 6% Debentures) executed in connection therewith.

(i)            No
event subject to a waiver or consent herein shall constitute an “Event of
Default” as defined in Section 2(a) of the 6% Debentures or in Section 1(b)(v)
of the the 6% Debenture Warrants,,and no such event will result in a price
adjustment or other ratchet to the 6% Debentures or the 6% Debenture Warrants
except as specifically set forth herein.

(j)            The
Buyer(s) (being the holders of all of the outstanding 6% Debentures)
acknowledges that the reverse stock split of the Common Stock effected by the
Company on February 13, 2007 resulted in a normal adjustment of the 6%
Debentures pursuant to clause 3(c)(ii)(c) thereof and of the 6% Debenture
Warrants pursuant to Section 8(d) thereof.

(k)           The
Company acknowledges that the shares issuable pursuant to certain of the 6%
Debenture Warrants are not subject to an effective registration statement and, 

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therefore, the holders thereof have the right of cashless exercise as
provided in Section 2(a)(ii) of the 6% Debenture Warrants.

(l)            Nothing in this
Section 1 waives the right of the Buyer(s) hereafter to enforce terms of the
Investor Registration Rights Agreement in accordance with the terms thereof (as
modified by these waivers) upon at least 60 days notice to the Company.

2.     OTHER AGREEMENTS

(a)           Adjustment
to Warrants.  The Buyer(s) hold
warrants to acquire 3,000,000 (750,000 post-split) shares of the Company’s
common stock exercisable through May 2009 at $1.75 ($7.00 post-split) per
share, and 3,000,000 (750,000 post-split) shares of the Common Stock exercisable
through May 2009 at $2.00 ($8.00 post-split) per share.  The Company agrees that, upon the first
conversion by the Buyer(s) of any 6% Debenture whether pursuant to paragraph
2(c) or otherwise, the exercise price of those warrants will be automatically adjusted
to the average of the two lowest daily VWAPs of the Common Stock during the
five Trading Days prior to such conversion (as those terms are defined in the
6% Debenture) to the extent that the average of the two lowest daily VWAPs are
in fact lower than the exercise price at the time of conversion.

(b)           Additional
Financing.  The Buyer(s) agree that
if the Company does not raise $2,000,000 (as contemplated in Section 1(h),
above) by April 6, 2007:

(i)                  The
Buyer(s) will (not later than April 12, 2007) “fill-the-gap” and provide funds
to the Company in an amount equal to the difference (but not greater than
$1,000,000) between $2,000,000 and the amount raised by the Company; or

(ii)                 The
Buyer(s) will waive their right of first refusal (as in Section 1(h), above)
and any dilution adjustment (as in Section 1(i), above) for other accredited
investors who actually purchase securities on terms identical in all material
respects to those offered by the Company who provide the funds to “fill-the-gap”
by not later than April 12, 2007.  If the
purchasers do not actually make the investment, the Buyer(s) will provide funds
to the Company (but not greater than $1,000,000 inclusive of Paragraph 2(b)(i),
above) not later than 4:00 pm Eastern time on April 12, 2007.

3.     GOVERNING LAW: MISCELLANEOUS.

(a)           Governing
Law.  This Agreement shall be
governed by and interpreted in accordance with the laws of the State of New
Jersey without regard to the principles of conflict of laws.  The parties further agree that any action between
them shall be heard in the United States District Court for the District of New
Jersey sitting in Newark, New Jersey for the adjudication of any civil action
asserted pursuant to this paragraph.

(b)           Counterparts.  This Agreement may be executed in two or more
identical counterparts, all of which shall be considered one and the same
agreement and shall become effective when counterparts have been signed by each
party and delivered to the other party. 
In the event any signature page is delivered by facsimile transmission,
the party using 

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such means of delivery shall cause four additional original executed
signature pages to be physically delivered to the other party within five days
of the execution and delivery hereof.

(c)           Headings.  The headings of this Agreement are for
convenience of reference and shall not form part of, or affect the
interpretation of, this Agreement.

(d)           Severability.  If any provision of this Agreement shall be
invalid or unenforceable in any jurisdiction, such invalidity or unenforceability
shall not affect the validity or enforceability of the remainder of this
Agreement in that jurisdiction or the validity or enforceability of any
provision of this Agreement in any other jurisdiction.

(e)           Entire
Agreement, Amendments.  This Agreement
supersedes all other prior oral or written agreements between the Buyer(s), the
Company, their affiliates and persons acting on their behalf with respect to
the matters discussed herein, and this Agreement and the instruments referenced
herein contain the entire understanding of the parties with respect to the
matters covered herein and therein and, except as specifically set forth herein
or therein, neither the Company nor any Buyer makes any representation,
warranty, covenant or undertaking with respect to such matters.  No provision of this Agreement may be waived
or amended other than by an instrument in writing signed by the party to be
charged with enforcement.

(f)            Notices.  Any notices, consents, waivers, or other
communications required or permitted to be given under the terms of this
Agreement must be in writing and will be deemed to have been delivered (i) upon
receipt, when delivered personally; (ii) upon confirmation of receipt, when
sent by facsimile; (iii) three (3) days after being sent by U.S. certified
mail, return receipt requested, or (iv) one (1) day after deposit with a
nationally recognized overnight delivery service, in each case properly
addressed to the party to receive the same. 
The addresses and facsimile numbers for such communications shall be:

	
  If to the Company, to:

  	
   

  	
  Isonics Corporation

  
	
   

  	
   

  	
  5906 McIntyre Street

  
	
   

  	
   

  	
  Golden, CO 80403

  
	
   

  	
   

  	
  Attention:

  	
  John Sakys, President

  
	
   

  	
   

  	
  Telephone:

  	
  (303) 279-7900

  
	
   

  	
   

  	
  Facsimile:

  	
  (303) 279-7300

  
	
   

  	
   

  	
   

  	
   

  
	
  With a copy to:

  	
   

  	
  Burns, Figa & Will, P.C.

  
	
   

  	
   

  	
  6400 South Fiddler’s Green Circle — Suite 1000

  
	
   

  	
   

  	
  Greenwood Village, CO 80111

  
	
   

  	
   

  	
  Attention:

  	
  Herrick K. Lidstone, Jr., Esq.

  
	
   

  	
   

  	
  Telephone:

  	
  (303) 796-2626

  
	
   

  	
   

  	
  Facsimile:

  	
  (303) 796-2777

  
	
   

  	
   

  	
   

  	
   

  

 

If to the Buyer(s), to its address and facsimile
number set forth beneath its signature, with copies to the Buyer’s
counsel.  Each party shall provide five
(5) days’ prior written notice to the other party of any change in address or
facsimile number.

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(g)           Successors
and Assigns.  This Agreement shall be
binding upon and inure to the benefit of the parties and their respective
successors and assigns.  Neither the
Company nor any Buyer shall assign this Agreement or any rights or obligations
hereunder without the prior written consent of the other party hereto.

(h)           No
Third Party Beneficiaries.  This
Agreement is intended for the benefit of the parties hereto and their
respective permitted successors and assigns, and is not for the benefit of, nor
may any provision hereof be enforced by, any other person.

(i)            Publicity.  The Company and the Buyer(s) shall have the
right to approve, before issuance any press release or any other public
statement with respect to the transactions contemplated hereby made by any
party; provided, however, that the Company shall be entitled, without the prior
approval of the Buyer(s), to issue any press release or other public disclosure
with respect to such transactions required under applicable securities or other
laws or regulations (the Company shall use its best efforts to consult the
Buyer(s) in connection with any such press release or other public disclosure
prior to its release and Buyer(s) shall be provided with a copy thereof upon
release thereof).

(j)            Further
Assurances.  Each party shall do and
perform, or cause to be done and performed, all such further acts and things,
and shall execute and deliver all such other agreements, certificates,
instruments and documents, as the other party may reasonably request in order
to carry out the intent and accomplish the purposes of this Agreement and the
consummation of the transactions contemplated hereby.  Without limitation of the foregoing, the
Buyer(s) will timely file any reports required under Sections 13(d) or 16(a) of
the Securities Exchange Act of 1934.

(k)           No
Strict Construction.  The language
used in this Agreement will be deemed to be the language chosen by the parties
to express their mutual intent, and no rules of strict construction will be
applied against any party.

(l)            Except
as expressly set forth above, all of the terms and conditions of the
Transaction Documents shall continue in full force and effect, and shall not be
in any way changed, modified or superseded.   This Agreement shall
provide for waivers, amendments and other terms as specifically set forth and
described herein and shall not be deemed a waiver or amendment to other terms
or conditions of the Transaction Documents.

[REMAINDER
PAGE INTENTIONALLY LEFT BLANK]

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IN WITNESS WHEREOF, the Buyers and the Company have caused
this Securities Purchase Agreement to be duly executed as of the date first
written above.

	
  BUYER(S)

  	
   

  	
  COMPANY:

  
	
  CORNELL
  CAPITAL PARTNERS, L.P.

  	
   

  	
  ISONICS CORPORATION

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  
	
  Yorkville
  Advisors, LLC, its general

  	
   

  	
  Name:

  	
  John Sakys

  
	
  partner, by Mark
  Angelo, its portfolio manager

  	
   

  	
  Title:

  	
  President and Chief Executive Officer

  
	
  101 Hudson
  Street — Suite 3700

  	
   

  	
   

  	
   

  
	
  Jersey City, NJ
  07303

  	
   

  	
   

  	
   

  
	
  Facsimile:  (201)
  985-8266

  	
   

  	
   

  	
   

  

 

 7Exhibit
10.2

SETTLEMENT
AGREEMENT AND MUTUAL GENERAL RELEASE

This Settlement
Agreement and Mutual General Release (hereinafter, this “Agreement”) is made
and entered into as of the 13th day of February
2007, by and between Isonics Corporation (“Isonics”) and James E. Alexander (“Mr.
Alexander”).  Isonics and Mr. Alexander
are referred to jointly herein as “the Parties.”

RECITALS

A.                                   Mr. Alexander had been an officer, director,
and employee of Isonics for more than the past ten years.

B.                                     By this agreement, Isonics and Mr. Alexander
have determined that it is in their best interests to resolve all disagreements
and issues between them and to provide for the resolution of all issues
relating to Mr. Alexander’s employment with Isonics, service as an officer and
director thereof, and the termination of his employment and resignation as an
officer and director (collectively the “Issues”) in exchange for the
consideration set forth herein.

AGREEMENT

NOW THEREFORE, in consideration of the following covenants and promises
and for other valuable consideration as described below, and without admitting
any fault or liability on the part of any of the Parties, their officers,
directors, or affiliates, the Parties hereby terminate the employment agreement
between Mr. Alexander and Isonics dated September 22, 1997, and further enter
into this Agreement.

1.                                       Mr.
Alexander’s Acknowledgements, Representations, and Agreement.

a.                                       Mr.
Alexander hereby submits his resignation as an officer and director of Isonics
and acknowledges that he has no authority to act or to make representations on
behalf of Isonics or any affiliate or subsidiary thereof.

b.                                      Mr.
Alexander represents that he has returned all of the property of and
information pertaining to Isonics, its subsidiaries and its affiliates, in his
possession and control.  Mr. Alexander
further represents to Isonics that he does not have any complete or partial
copies of any of this property, either written or on tape, disk, diskette or
other storage media.  Mr. Alexander
acknowledges that if he later learns that he has any property that belongs to
Isonics, he is obliged to notify Isonics and to make arrangements to return all
such property.  Notwithstanding the
foregoing, the parties have agreed that Mr. Alexander will take ownership of
the twelve year old custom made furniture in his office at Isonics and also of
the two laptops in his possession, after they have been cleaned of all Isonics
related information.

c.                                       Mr.
Alexander agrees that he will not disparage Isonics or any of its officers,
directors, employees, affiliates, or agents. 
Mr. Alexander further acknowledges that (to the extent he has received
confidential or non-public information regarding Isonics) he will comply with
his legal obligations with respect thereto. 
Failure to comply with the provisions of this paragraph may, in addition
to any other remedies available under applicable law and at Isonics’ option,
result in a termination of any payments and benefits which have not been made
as of the first day of the month following such failure.

d.                                      Mr.
Alexander agrees that during the period of his continuing employment with
Isonics and thereafter, he will assist Isonics’ executive chairman, chief
executive officer and chief financial officer with transition matters and the litigation
against Grant Thornton LLP.

e.                                       Mr.
Alexander hereby grants the enclosed proxy by which the named proxy holder can
vote all shares of Isonics common stock held in his name, in the name of the
James and Carol Alexander Foundation, in the name of Carol Alexander, and any
other beneficial ownership controlled by him for approval of Isonics’ 2007
Restructuring Equity Plan and any amendment to the Isonics 2005 Stock Option
Plan that may be proposed at the next meeting of shareholders of Isonics.

f.                                         Mr.
Alexander agrees that, at all times from the date of this Agreement and for a
period of one  year thereafter, he will
not either directly or indirectly solicit, induce, recruit or encourage (or
attempt to solicit, induce, recruit or encourage) any of Isonics’ employees to
leave their employment.  Failure to
comply with the provisions of this paragraph may, in addition to any other
remedies available under applicable law and at Isonics’ option, result in a
termination of any payments and benefits which have not been made as of the
first day of the month following such failure.

2.                                       Settlement
Consideration.

a.                                       Isonics
will pay Mr. Alexander compensation for continuing employment of $206,244, in
the form of three payments of $22,916 each payment, commencing February 28,
2007 (for the period from February 16 through March 15, 2007) and on or before
the last day of the two months thereafter, and then twelve payments of
$11,458.  Isonics will make this payment
directly into Mr. Alexander’s account and will deduct all normal withholdings
from that payment in accordance with its normal payroll practices, and such
payments made be made semi-monthly in accordance with Isonics’ normal payroll
practices.

b.                                      Mr.
Alexander hereby surrenders all options issued to him under the 2005 Stock
Option Plan and the 1996 Executive’s Plan for cancellation.

c.                                       Mr.
Alexander will continue to be an employee of Isonics during the period ending
on the last day of the month that payments are being made to him pursuant to
Section 2(a) hereof (the “Employment Period”), and will be entitled to
participate in 

Isonics normal employee benefits except the accrual of personal time
off (“PTO”) which ceases on the date hereof. 
Mr. Alexander will respond to reasonable requests, spending such time as
he deems necessary, for information and assistance during the Employment
Period.  Isonics will use its best
efforts to avoid exposing Mr. Alexander to any material non-public information
without advising Mr. Alexander in advance that the information it is providing
with respect to a project is material non-public information. Further, Isonics
understands that Mr. Alexander will pursue significant outside interests during
the Employment Period and understands that any requests for information and
assistance will be subordinate to his outside interests.  Isonics does not expect Mr. Alexander to
report to Isonics’ offices or deal with Isonics personnel except upon written
or oral request of the chairman of the audit committee, the executive chairman
of Isonics, or the chief executive officer of Isonics.

d.                                      Isonics
will issue to Mr. Alexander 250,000 shares of common stock from Isonics’ 2005
Stock Option Plan (such number of shares being calculated after the
effectiveness of the reverse stock split scheduled to be completed on February
13, 2007), such issuance being subject to: (i) Mr. Alexander executing and
returning an acceptable subscription agreement for those shares; and (ii)
either Mr. Alexander providing evidence to Isonics that he owes no income tax
liability on that amount, or that he has made adequate provision for such
liability.  If the parties are unable to
achieve a method of satisfying the requirements of the Internal Revenue Service
and state taxing authorities for the payment of any withholding necessary with
respect to the issuance of the shares, the parties will negotiate in good faith
an issuance of shares or other compensation to Mr. Alexander with an equal
economic benefit to Mr. Alexander but which will not materially adversely
impact Isonics’ cash position or other financial obligations.  In connection with the issuance of the shares
of common stock referenced in this Section 2(d), Mr. Alexander represents and
warrants to Isonics:

·              He is an accredited investors as
that term is defined in §2(a)(15) of the Securities Act of 1933 (the “1933 Act”);

·              He has received such information
about Isonics as is, in his opinion, reasonably necessary for him to make his
decision whether to accept such shares;

·              He has discussed the acceptance of
such shares with his legal, financial, tax, investment and other advisors to
the extent that he has determined such consultation to be appropriate or
necessary;

·              He understands the risks
associated with receiving and holding shares of Isonics common stock.

e.                                       Reports.  The Parties agree to make all necessary and
usual reports to the Internal Revenue Service, state taxing authorities and any
similar agencies and to perform all withholdings normally applicable to the
types and amounts of payments and other consideration Mr. Alexander is to
receive as a result of this Agreement.

f.                                         No
Other Payment or Employee Benefit. 
Isonics will make only the payments expressly stated in this Agreement
and will provide no other payments or benefits to Mr. Alexander.  Notwithstanding the foregoing, Isonics will,
pay full amounts accrued by Mr. Alexander in each qualified retirement plan
maintained by Isonics in which he participates.

3.                                       General
Release by Isonics.  In consideration
for Mr. Alexander’s releases and agreements contained in this Agreement and
upon its receipt of a fully executed and notarized copy of this Agreement,
Isonics and each of Isonics’ officers, directors, employees, and agents, and
for anyone who has or obtains rights or claims from Isonics, forever releases
and discharges Mr. Alexander and each of Mr. Alexander’s heirs, beneficiaries,
successors, assigns, agents, employees, executors, administrators, and
representatives from any and all claims and causes of action arising before the
effective date of this Agreement, whether known or unknown and including, but
not limited to, all claims arising out of Mr. Alexander’s employment with
Isonics or arising out of any act or omission of Mr. Alexander made in good
faith as Isonics’ employee; provided, however, Isonics’ release does not
include a release for any liability or obligation arising under this Agreement,
or arising from any fraud or willful misconduct by Mr. Alexander or a breach of
this Agreement.

4.                                       General
Release by Mr. Alexander.

a.                                       In
consideration for Isonics’ releases and agreements contained in this Agreement,
the payment of the settlement consideration described herein and upon his
receipt of a fully executed and notarized copy of this Agreement, Mr.
Alexander, for himself, for his heirs, beneficiaries, successors, assigns,
agents, employees, executors, administrators, and representatives, and for
anyone who has or obtains rights or claims from him, forever releases and
discharges Isonics, and each of Isonics’ affiliates, directors, officers,  successors, assigns, agents, employees, and
representatives from any and all claims and causes of action arising before the
effective date of this Agreement, whether known or unknown and including, but
not limited to, all claims arising out of Mr. Alexander’s employment with
Isonics or arising out of any act or omission of Isonics or any of its officers
and directors and any PTO accrued through the date hereof; provided, however,
Mr. Alexander’s release does not include a release for any liability or
obligation arising under this Agreement, or arising from any fraud or willful
misconduct by Isonics, or any of its officers and directors, and further does
not apply to any rights that Mr. Alexander might have as a shareholder of
Isonics or as a holder of options or warrants issued by Isonics.

b.                                      To
the extent permitted by law, Mr. Alexander specifically releases Isonics from
all claims arising under or in connection with the following federal and state
laws, as amended, and all related regulations, the: Age Discrimination in
Employment Act of 1967; Americans with Disabilities Act of 1990; Title VII of
the Civil Rights Act of 1964; Civil Rights Act of 1991; Civil Rights Acts of
1866 and 1871; Equal Pay Act of 1963; Family and Medical Leave Act of 1993;
National Labor Relations Act; Occupation Safety and Health Act of 1970; Older
Workers Benefit Protection Act of 1990; 

Pregnancy Disability Act of 1978; the Rehabilitation Act of 1973;
Executive Order 11246; Colorado Anti-Discrimination Act of 1957; Colorado’s
Minimum Wages of Workers Act; Colorado Wage Equality Regardless of Sex Act;
Colorado Labor Peace Act; and the common law of the State of Colorado for
compensation, damages, tort, breach of express or implied employment contract,
discrimination, harassment, sexual harassment, wrongful discharge, infliction
of emotional distress, defamation and for any other damages or injuries
incurred on the job, in relation to Mr. Alexander’s employment or incurred as a
result of loss of employment.

5.                                       Reference.  Isonics and its officers, directors,
employees, agents and assigns, agree to advise persons who may ask for a
reference no more than the following: that Mr. Alexander was employed by
Isonics, the capacities in which he was employed, and the dates that Mr.
Alexander was employed, and that such employment was satisfactory.

6.                                       Entire
Agreement; Amendment; Enforceability; Interpretation.  This Agreement expresses our entire
understanding about its subject matter and is the only agreement, promise or
understanding on which we are relying in performing the duties this Agreement
describes.  The only way this Agreement
may be amended, changed or waived will be through a written document we both
sign.  This Agreement is enforceable by
and against each Party and anyone else who has or who obtains rights under this
Agreement from either Party.  This
Agreement will be interpreted and enforced under Colorado law.  No part of this Agreement should be construed
against either Party on the basis of authorship.  Any unenforceable provision of this Agreement
will be modified to the extent necessary to make it enforceable or, if that is
not possible, will be severed from this Agreement, and the remainder of this
Agreement will be enforced to the fullest extent possible.  Any claims arising under this Agreement shall
be subject to binding arbitration pursuant to the rules of the Uniform
Arbitration Act as enacted in the State of Colorado, with one arbitrator to be
selected from the Judicial Arbiter Group, as agreed upon by both parties.  Or in the absence of an agreement by
JAG.  The site of arbitration shall be
Denver, Colorado.  Further, should any
party be forced to bring an action to enforce any provision of this Agreement, the
prevailing party, in addition to all other applicable remedies, shall be awarded
all reasonable cost and attorneys’ fees.

7.                                       Notices;
Process.  Any notice this Agreement
required must be in writing and will be effective only if hand-delivered or
sent by certified U.S. mail, return receipt requested, to the Party entitled to
receive the notice at the Party’s address stated below, or at such other
address as that Party may later provide to the other Party.  We each agree to waive service of process in
any action or arbitration brought to enforce or to interpret this Agreement,
and we agree that service of this complaint and any other pleading, discovery,
order or service of the complaint and any other pleading, discovery, order or
documents in any such action that would otherwise have to be served by personal
service will be deemed served three days after being sent to the other Party
and that Party’s attorney as provided below:

to Mr. Alexander at:                                      31146
Tanoa Road

Evergreen,
Colorado 80439

with a copy to:                                                                 Law
Offices of Peggy J. Hoyt-Hoch

P.O. Box 2783

Evergreen,
Colorado 80437

 

to Isonics at:                                                                           Isonics
Corporation

5906 McIntyre Street

Golden,
Colorado  80403

with a copy to:                                                                 Herrick
K. Lidstone, Jr., Esq.

Burns Figa & Will,
P.C.

Suite 1000

6400 South Fiddler’s
Green Circle

Greenwood Village,
Colorado  80111

8.                                       Signatory’s
Authority; All Necessary Consents. 
Each Party expressly represents that such Party does not require any
third party’s consent to enter into this Agreement, including the consent of
any spouse, insurer, assignee, licensee, secured lender, or regulatory
agency.  Each Party has read and
considered this Agreement carefully, believes that Party understands each
provision, and has conferred or has had the opportunity to confer with the
Party’s own attorney before executing this Agreement.

9.                                       SPECIFIC
ACKNOWLEDGEMENTS.  MR. ALEXANDER
ACKNOWLDEGES THAT HE HAS READ THIS AGREEMENT, THAT HE HAS BEEN ADVISED THAT HE
SHOULD CONSULT WITH AN ATTORNEY BEFORE HE EXECUTES THIS AGREEMENT, AND THAT HE
UNDERSTANDS ALL OF ITS TERMS AND EXECUTES IT VOLUNTARILY WITH FULL KNOWLEDGE OF
ITS SIGNIFICANCE AND THE CONSEQUENCES THEREOF.

10.                                 No
Admission.  This Agreement, and
compliance with this Agreement, shall not be construed as an admission of
liability on the part of the Parties, such liability being hereby expressly
denied.  The Parties’ intent in this
Agreement is to provide the other Party with a complete, total, irrevocable and
binding release of all matters arising before the date of this Agreement
(except those matters reserved herein), which might result in a dispute and
avoid any further differences or conflicts. The Parties hereby represent that
they have neither filed nor caused to be filed any pending charges, suits,
claims, grievances or other action (hereinafter referred to as “Claims”) which
in any way arise from or relate to the Issues. 
Each Party further represents to each other that such Party has not
directly or indirectly assigned any claim related to the Issues or released
hereby to any other person.

11.                                 No
Knowledge of Securities or Disclosure Violations.  Each of Isonics and Mr. Alexander
affirmatively states and represents to the other that it has no knowledge that
the other has violated the requirements of the Securities Act of 1933, the
Securities Exchange Act of 1934 (the “1934 Act”), the reporting requirements of
the 1934 Act, the requirements for disclosure controls and financial controls
imposed by the 1934 Act, or other provisions of the federal or applicable state
securities laws.

12.                                 Full
and Complete Defense.  This Agreement
and the releases contained herein, may be pleaded as a full and complete
defense, counterclaim or cross-claim to, and may be used as a basis for an
injunction against, any action, suit, or other proceeding which may be
instituted, prosecuted or attempted in breach of this Agreement or the releases
contained herein.  In the event of any
action by any Party hereto to enforce this Agreement, the releases contained
herein, or any other agreement delivered pursuant hereto, the prevailing party
shall be entitled to recover reasonable attorneys’ fees and costs.

13.                                 Attorneys’
Fees.  Each of the Parties shall be
responsible to pay his or its respective attorneys’ fees incurred in connection
with the negotiation and drafting of this Agreement.  Each Party shall release and forever hold the
other harmless from any liability to the attorneys for payment of such fees
pursuant to any agreement or understanding between each Party and his or its
attorneys.

14.                                 No
Reliance.  The Parties warrant to
each other that in agreeing to the terms of this Agreement, they have not
relied in any way upon any representations or statements of the other party
regarding the subject matter hereof for the basis or effect of this Agreement
other than those representations or statements contained herein.  In
entering into this Agreement,   each
Party represents that in entering into this Agreement and completing the
transactions hereunder, he or it has done so after completing such
investigation as he or it has determined to be necessary or appropriate in the
circumstances, and after having consulted with and taken advice from such Party’s
legal, financial, tax, investment, and other advisors to the extent such Party
has determined such consultation to be necessary or appropriate in the
circumstances.

15.                                 No
Mistake; Final Settlement.  In
connection with this Agreement, the Parties hereby acknowledge that they are
aware that they may hereafter discover facts in addition to or different from
those which they now know or believe to be true with respect to this Agreement,
but that it is their intention hereby to settle, fully, finally and forever,
and to release all matters, Issues and differences, known or unknown, suspected
or unsuspected, which now exist, which may exist, or which heretofore have
existed against any and all Parties under this Agreement.

16.                                 Severability.  If any part of this Agreement shall be
determined to be illegal, invalid or unenforceable, the remaining part shall
not be affected thereby, and the illegal, unenforceable or invalid parts shall
be deemed not to be a part of this Agreement, although this Agreement will be
rewritten by the court or person making such finding to reflect the intention
of the Parties to the maximum extent permitted by law. Each Party represents
and warrants that he or it has full capacity and authority to settle,
compromise, and release his or its claims and to enter into this Agreement and
that no other person or entity has acquired, or will in the future 

acquire or have any right
to assert, against any person or entity released by this Agreement any portion
of that Party’s claims released herein.

17.                                 Counterparts.  This Agreement may be executed in
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.

18.                                 Notices. All written notices required by this
Agreement or any document delivered pursuant hereto or as contemplated herein,
must be delivered to the addresses set forth in the first paragraph above (or
to such other address as may be specified by a Party) by a means evidenced by a
delivery receipt and will be effective upon receipt.

19.                                 Survival.  The Parties agree that the obligations,
representations and warranties contained herein shall indefinitely survive the
execution of this Agreement, the delivery of all documents hereunder.

IN
WITNESS WHEREOF, the Parties have caused this Agreement to be
duly executed as of the date first mentioned above.

THE UNDERSIGNED HAVE
CAREFULLY READ THE FOREGOING SETTLEMENT AGREEMENT AND GENERAL RELEASE OF ALL
CLAIMS, KNOW THE CONTENTS THEREOF, FULLY UNDERSTAND IT, AND SIGN THE SAME AS
HIS OR ITS OWN FREE ACT.

	
  ·

  	
  CAUTION! READ BEFORE SIGNING

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  James
  E. Alexander

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  STATE OF 

  	
   

  	
   

  	
  )

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  ) ss.

  	
   

  
	
   

  	
  COUNTY OF 

  	
   

  	
   

  	
  )

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Subscribed, sworn to, and acknowledged before me by
  James E. Alexander on this           day
  of February 2007.

  
	
   

  	
   

  	
   

  
	
   

  	
  Witness my hand
  and official seal.

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  My commission
  expires: 

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Notary Public

  
							

 

 

	
  ·

  	
  CAUTION!
  READ BEFORE SIGNING

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Isonics Corporation

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  John Sakys, Chief Financial Officer

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  STATE OF COLORADO

  	
   

  	
  )

  	
   

  
	
   

  	
   

  	
   

  	
  ) ss.

  	
   

  
	
   

  	
  COUNTY OF JEFFERSON

  	
   

  	
  )

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Subscribed, sworn to, and acknowledged before me by
  John Sakys, on this           
  day of February 2007.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Witness my hand and official seal.

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  My commission expires:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Notary Public

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00117-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00117-of-00352.parquet"}]]