Document:

exhibit_10-6.htm

    
      

    

    EXHIBIT
10.6

    
 

    ASSET
PURCHASE AGREEMENT

     

    THIS
ASSET PURCHASE AGREEMENT {the "Agreement") is made and entered into this 13th
day of June 2007, by and among Isonics Corporation, a California corporation
(the "Seller"), and Advanced Medical Isotopes Corporation, a Delaware
corporation (the "Buyer"). Buyer and Seller are each a "Party" and collectively
are the "Parties."

     

    Explanatory
Statement

     

    A.           The
Seller has operated a business segment that it has referred to as its life
sciences segment.
The Seller has described this segment as follows:

     

    "Our life
sciences division has historically been primarily a distribution business. We
acquire isotopes from several manufacturers who are located primarily in
republics that were part of the former Soviet Union. We buy these isotopes from
the manufacturers and resell them in the form of common chemical compounds. For
example, oxygen-18 is sold as water, and zinc-68 is sold as zinc oxide. We sell
these isotopes for use in basic scientific research, medical diagnostics/therapy
and industrial applications. An isotope is one of two or more species (or
nuclides) of the same chemical element that differ from one another only in the
number of neutrons in the atom's nucleus. The different number of neutrons can
create significantly different nuclear properties. The most well known of these
properties is radioactivity. Radioactive isotopes (or radioisotopes) can be
found in nature. Most of our radioisotopes, however, are man-made. Stable
isotopes, as distinguished from radioisotopes, are not
radioactive."

     

    The
Seller has published further information about its life sciences business
segment in its reports filed with the Securities and Exchange Commission (the
"SEC") under the Securities Exchange Act of 1934 (the "1934 Act").

     

    B.           The
Buyer is experienced in the offer and sale of isotopic and other materials
similar to the
Seller's life sciences segment, and desires to purchase the assets constituting
the Seller's life sciences segment, which assets (the "Assets") are more fully
described in Exhibit "A" attached hereto and by this reference incorporated
herein.

     

    NOW,
THEREFORE, in consideration of the mutual covenants, promises, agreements,
representations and warranties contained in this Agreement, the Parties hereby
covenant, promise, agree, represent and warrant as follows:

     

    1.     
       Purchase and Sale of
Assets. Seller agrees to sell, assign, transfer and deliver to the
Buyer and
Buyer agrees to purchase from the Seller all of Seller's right, title and
interest in and to the Assets (the "Sale" or "Transaction").

     

    2.      
      Assumed Contract Rights and
Liabilities. Except for the contracts specifically described
on Exhibit "A", the Buyer does not assume, and shall not be liable for any of
the Seller's liabilities or obligations, known or unknown, fixed or contingent,
whether existing now or in the future with respect to, any contracts or
contractual obligations from the Seller, including the current dispute between
the Seller and Central Radiopharmaceutical Services ("CRS") regarding moneys
owed to CRS for services previously provided. To the extent that any of the
contracts being assumed by the Buyer {the "Assumed Contracts") require the
consent of another party to the contract, Buyer's assumption of the contract
shall be contingent on such approval. Provided, however,
that in the event consent is not obtained, Seller may, at its option, if
permitted by the contract and Seller can do so without breach of the contract,
cancel the contract or continue the contract and subcontract to Buyer until the
expiration of its term and Buyer, as subcontractors, shall reimburse Seller for
all payments made under such contracts after the Closing Date. Buyer shall have
no obligation to reimburse Seller for any costs or damages incurred as a
consequence of Seller's breach of a contract or paid as a requirement of
obtaining consent to the assumption or subcontracting.

     

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    3.     
       Purchase Price. In
consideration of the Sale of the Assets by the Seller to the Buyer, the Buyer
shall pay to Seller at the Closing in cash or immediately available funds a
total of $850,000 (the "Purchase Price"):

     

    4.       
     Closing. The
"Closing" shall be the completion of the Sale contemplated by this Agreement.
The date of Closing (the "Closing Date") shall be as mutually agreed upon by the
Parties but in no event later than May 31, 2007, unless extended by the mutual
agreement of the Parties. The Closing will take place at the offices of Burns,
Figa & Will, P.C., Suite 1000, 6400 South Fiddler's Green Circle, Greenwood
Village, CO 80111.

     

    5.        
    Conduct of Business Prior to
Closing. Except as set forth in Exhibit B, the Seller shall continue to
conduct the business of its life sciences segment as such business has
historically been conducted over the past year. Each Party will keep the other
Party advised of any material developments relevant to this
Transaction.

     

    6.          
  Possession
of the Assets. The Buyer shall take possession of the Assets at the
Closing. The Seller will assist the Buyer as may be reasonably necessary in
transferring the Assets to the Buyer's possession, although any freight or other
expenses incurred (other than expenses of the Seller's employees) will be paid
by Buyer.

     

    7.         
   Condition of Assets; No
Warranties. The Seller and Buyer agree that the Buyer will be acquiring
the Assets as-is, where-is, and without any warranties of merchantability or
fitness for a particular purpose and all such warranties are hereby expressly
disclaimed. The only warranties of Seller are those specifically set forth
herein, and there will be no implied warranties. The cost of maintaining the
Assets prior to the Closing Date shall be the Seller's expense.

     

    8.     
       Employees. The Seller
will retain responsibility for any of its employees normally dealing with the
Assets or the life sciences business. To the extent that the Buyer desires to
use the services of any such employee, the Buyer may, in its discretion and upon
prior written notice to the Seller, contract with such employee.

     

    9.    
        The Seller's Warranties and
Representations. The Seller represents and warrants to the Buyer as
follows:

     

    a.    Due Organization;
Good Standing; Authority of Seller. The Seller is a corporation
duly organized, validly existing and in good standing under the laws of the
State of California.
The Seller has full right, power and authority to own, lease and operate its
properties and assets, and to carry on its business. The Seller is not in breach
or violation of, and the execution, delivery and performance of this Agreement
will not result in a breach or violation of, any of the provisions of the
Seller's articles of incorporation or bylaws to the date of this
Agreement.

     

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    b.           Authorization and Validity of
Agreements. The Seller has the full right, power and authority to execute
and deliver this Agreement and the other documents contemplated for the Closing
(collectively the "Closing Documents") and to perform the transactions
contemplated by the applicable Closing Documents. This Agreement has been duly
executed and delivered by the Seller.

     

    c.           Agreement Not in Conflict with Other
Instruments; Required Approvals Obtained. The execution,
delivery, and performance of the applicable Closing Documents by the Seller and
the completion of the Sale will not conflict with, require any consent,
approval, or filing under, result in the breach or termination of, or constitute
a default under the Seller's articles of incorporation or bylaws, or any
contract, covenant, judgment, order or decree to which the Seller or any of the
Assets is bound.

     

    d.           Legal Proceedings. There is
no action, suit, proceeding, claim or arbitration, or any investigation by any
person or entity including, but not limited to, any government or governmental
agency, (i) pending, to which the Seller is a party, or threatened against or
relating to the Seller which affects or may affect the Seller's ability to
complete the transactions contemplated hereby; (ii) challenging the Seller's
right to execute, deliver, perform under or complete the transactions
contemplated by the Closing Documents, except for the mediation demand filed by
the producer of 111
indium, CRS, regarding the amount of money owed to CRS for certain services
previously provided to the Seller (which claim and potential liability the
Seller is retaining). To the Seller's knowledge, there are no attachments,
executions, assignments for the benefit of creditors or voluntary or involuntary
proceedings in bankruptcy or under any other debtor relief laws either
contemplated or currently undertaken by the Seller, or pending or threatened
against the Seller, or any portion of the Assets.

     

    e.           Assets. The Seller has, and
shall have effective as of the Closing, good and marketable title to each and
all of the Assets, free and clear of any and all liens, agreements,
restrictions, claims, security interest, pledges, charges, equities and other
encumbrances except the security interest granted to Cornell Capital Partners,
L.P., which interest Cornell will, prior to the Closing, release in writing and
except for a security interest held by General Electric Capital in the
PerkinElmer Optima 2000 (the "ICP"), collateralizing a debt which the Seller
will repay in full from the proceeds of the Closing and for which the Seller
will obtain a release from the creditor.

     

    f.           Records. The Records that
have been delivered by the Seller to the Buyer or that shall be delivered by the
Seller to the Buyer are true, correct and complete.

     

    g.          Taxes. The Seller has, prior
to the date hereof, paid any and all taxes due and payable in connection with
the Assets through the calendar year 2006.

     

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    h.           No
Material Omissions or Misrepresentations. This Agreement and the exhibits
hereto do not include any untrue statement of a material fact or omit to state
any material fact necessary in order to make the statements therein and herein,
in light of the circumstances under which they were made, not misleading. The
Seller has no knowledge of any circumstances that might materially adversely
impact the value of the Assets prior to the Closing Date.

     

    i.           Other
Acts. The Seller will execute any other documents reasonably required to
carry out the intent of this Agreement, including specific transfer documents to
be executed by the Seller with respect to any of the Assets that require
separate documents of transfer.

     

    10.    Representations
and Warranties of the Buyer. The Buyer represents and warrants to
the
Seller that:

     

    a.           Due
Organization; Good Standing; Authority of the Buyer. The Buyer is a
corporation duly organized, validly existing and in good standing under the laws
of the State of Delaware and duly qualified to transact business in the state of
Washington. The Buyer has full right, power and authority to own, lease and
operate its properties and assets, and to carry on its business. The Buyer is
not in breach or violation of, and the execution, delivery and performance of
this Agreement will not result in a breach or violation of, any of the
provisions of the Buyer's articles of incorporation or bylaws to the date of
this Agreement.

     

    b.           Authorization
and Validity of Agreements. The Buyer has the full right, power and
authority to execute and deliver this Agreement and the other Closing Documents
and to perform the transactions contemplated by the applicable Closing
Documents. This Agreement has been duly executed and delivered by the
Buyer.

     

    c.           Agreement
Not in Conflict with Other Instruments. The execution, delivery, and
performance of the applicable Closing Documents by the Buyer and the completion
of the Sale will not conflict with, require any consent, approval, or filing
under, result in the breach or termination of, or constitute a default under the
Buyer's articles of incorporation or bylaws, or any contract, judgment, order or
decree to which the Buyer are bound.

     

    d.           Legal
Proceedings. To the Buyer's knowledge, there is no action, suit,
proceeding, claim or arbitration, or any investigation by any person or entity
including, but not limited to, any government or governmental agency, (i)
pending, to which the Buyer (or any of them) are a party, or threatened against
or relating to the Buyer which affects or may affect the Buyer's ability to
complete the transactions contemplated hereby; (ii) challenging the Buyer's
right to execute, deliver, perform under or complete the transactions
contemplated by the Closing Documents. To the Buyer's knowledge, there are no
attachments, executions, assignments for the benefit of creditors or voluntary
or involuntary proceedings in bankruptcy or under any other debtor relief laws
either contemplated or currently undertaken by the Buyer, or pending or
threatened against the Buyer, or any property or assets of the
Buyer.

    
      
         

      

      
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    e.           No Material
Omissions or Misrepresentations. This Agreement and the exhibits hereto
do not include any untrue statement of a material fact or omit to state any
material fact necessary in order to make the statements made, in the light of
the circumstances under which they were made, not misleading.

     

    f.           Financial
Condition. The Buyer is not insolvent and the completion by the Buyer of
the purchase of the Assets will not result in the Buyer becoming insolvent or
unable to pay its debts as they may become due.

     

    g.           Other Acts.
The Buyer will execute any other documents reasonably required to carry
out the intent of this Agreement.

     

    11.    Conditions to the Buyer's
Obligation to Close. The obligations of the Buyer to complete the Sale
under this Agreement are conditioned upon and subject to the satisfaction of the
following conditions, each of which may be waived in writing by the
Buyer:

     

    a.           The
representations and warranties of the Seller set forth in this Agreement and all
documents delivered pursuant hereto or in connection with the Transaction shall
be true and correct in all material respects when made and on the Closing
Date.

     

    b.           The
Seller shall have performed in all material respects the covenants, agreements
and obligations required to be performed by Seller under this Agreement prior to
and on the Closing Date.

     

    c.           This
Agreement and the transactions contemplated hereby shall have been approved by
the Seller's Board of Directors.

     

    d.           The
Buyer shall have completed its due diligence review of the life sciences'
business, assets, liabilities, legal matters, employment matters, financial
condition, customer matters, supplier matters and employee matters and its
contact and communication with the suppliers, customers and employees of the
life sciences division , and this review and contact shall have confirmed the
accuracy and completeness of the information concerning the life sciences
division's customers, suppliers and employees previously supplied by the
Seller.

     

    12.    Conditions to the Seller's
Obligation to Close. The obligations of the Seller to complete
the Sale under this Agreement are conditioned upon and subject to the
satisfaction of the following conditions, each of which may be waived in writing
by the Seller:

     

    a.           The
Buyer shall have delivered to the Seller the Purchase Price.

     

    b.           The
representations and warranties of the Buyer set forth in this Agreement and all
documents delivered pursuant hereto or in connection with the Transaction shall
be true and correct in all material respects when made and on the Closing
Date.

    
      
         

      

      
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    c.      
    The Buyer shall have performed in all material respects
the covenants, agreements and obligations required to be performed by the Buyer
under this Agreement prior to and on the Closing Date.

     

    13.    Actions to Be Taken at
Closing. At Closing the following actions shall be taken by the
following persons:

     

    a.           The
Buyer shall deliver the Purchase Price to Seller by wire transfer or in
immediately available funds as may be directed by Seller.

     

    b.           The
Seller shall execute and deliver to the Buyer a Bill of Sale, with warranties of
title, pursuant to which the Seller shall sell, assign, and transfer to the
Buyer the Assets that can be transferred by Bill of Sale.

     

    c.           The
Seller shall execute and deliver to the Buyer an Asset Assignment pursuant to
which the Seller shall sell, assign and transfer to the Buyer any portion of the
Assets that cannot be transferred by Bill of Sale.

     

    d.           At
the Closing, the Seller will retain all inventory of Oxygen-18 in the form of
water and, after the Closing, may continue to fulfill its contractual
obligations with respect thereto, and offer the remaining inventory for sale.
Buyer may sell Oxygen-18 after Seller has disposed of its inventory. Seller and
Buyer will work cooperatively after the Closing to transition Seller's contracts
and relationships for the Purchaser and sale of Oxygen-18 to the Buyer, who
agrees to assume such obligation.

     

    14.    Indemnification.

     

    a.    The Buyer's Indemnity Obligations.
The Buyer, and its legal representatives, guardians,
directors, officers, shareholders, successors and assigns, hereby jointly and
severally agree to indemnify and hold harmless the Seller, and its officers,
directors, shareholders, employees, successors and assigns from and against any
and all claims, liabilities, suits, actions, proceedings, demands, damages,
losses, costs, and expenses {including reasonable attorneys' fees and experts'
fees) arising out of or in connection with:

     

    i.              Any
misrepresentation or breach by the Buyer of any representation or
warranty contained in any Closing Document or exhibit thereto.

     

    ii.             Any
nonperformance, failure to comply or breach of or default by the Buyer
under any covenant, promise or agreement of the Buyer contained in this
Agreement or exhibit hereto.

     

    b.    The Seller's Indemnity Obligations.
The Seller and its legal representatives, guardians,
directors, officers, shareholders, successors and assigns, hereby jointly and
severally agree to
indemnify and hold harmless the Buyer, and its officers, directors,
shareholders, employees,
successors and assigns from and against any and all claims, liabilities, suits,
actions, proceedings,
demands, damages, losses, costs, and expenses (including reasonable attorneys'
fees and experts' fees) arising out of or in connection with:

     

     

    
      
        
        

      

      
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    i.             
Any misrepresentations or breach by the Seller of any representation
or
warranty contained in any Closing Document or exhibit thereto.

     

    ii.            
Any nonperformance, failure to comply or breach of or default by the
Seller
under any covenant, promise or agreement of the Seller contained in this
Agreement
or contained in any Closing Document or exhibit thereto.

     

    c.    Notice:
Disposition. The indemnified Party shall notify the indemnifying
Party in
writing of any such claim for indemnification with reasonable promptness. The
indemnifying Party or its representatives shall have, at its election, the right
to compromise, defend or cure any such claim at the indemnifying Party's sole
expense. The indemnifying Party shall keep the indemnified Party reasonably
apprised of the matter and shall consider input offered by the indemnified Party
in resolving the matter.

     

    15.    Expenses of
Sale.

     

    
      a.           
All
sales, transfer and use taxes incurred in connection with the sale, assignment,
transfer and delivery of the Assets shall be paid by the
Buyer.

    

     

    
      b.          
 Each
Party shall bear the fees and expenses of its professional advisers incurred in
connection with the negotiation of this agreement or the letter of intent
between the parties dated March 12, 2007, completion of any due diligence
investigation, and the completion of the transactions contemplated
hereby.

    

     

    
      c.           
Neither
Party has engaged a broker to facilitate the Sale. Any claims for commissions or
fees made against any Party in connection with this Transaction shall be handled
and paid by the Party whose actions form the basis of such
claim.

    

     

    16.    Entire
Agreement. This Agreement constitutes the entire, integrated agreement of
the
Parties with respect to the subject matter hereof, and shall supersede any and
all prior or contemporaneous negotiations, correspondence, understandings and
agreements between the parties, respecting the subject matter hereof. No
provision of this Agreement may be amended, waived, or otherwise modified
without the prior written consent of all Parties.

     

    17.    Notices.
All notices, requests, demands, consents, and other communications which
are
required or may be given under this Agreement shall be in writing and shall be
given as follows: by personal delivery against a receipted copy; overnight
courier, or by U.S. registered or certified mail, return receipt requested,
postage prepaid:

     

    
    

     

    
      	If to the
      Buyer:	
              Advanced
      Medical Isotopes Corporation

              Attn: James C. Katzaroff,
  President

            

    

     

    

      
        
           

        

        
          7

          
            

          

        

        
           

        

      

      
        	 	
                

                  7203
      W. Deschutes Avenue, Suite C 

                  Kennewick,
      WA 99336

                  Tel:509-374-4038

                  Fax:
      509-736-7001

                  www.advancedmedicalisotopes.com

                

              
	 	 
	

                If
      to the Seller:

              	

                Isonics
      Corporation

                Attention:
      John Sakys, President

                5906
      McIntyre Street 

                Golden,
      Colorado 80403 

                Tel:303-279-7900

                Fax:
      303-279-7300 

                www.isonics.com

              

      

    

    
    

     

    
      	
              With a copy
      to:

            	Burns Figa &
      Will, P.C. 

              Herrick
      K. Lidstone, Jr., Esq.

              6400
      S. Fiddlers Green Circle

              Suite
      1000

              Greenwood
      Village, Colorado 80111

            

    

     

    Any such
notice shall be deemed to be received: (a) if delivered personally, on the date
of such delivery; (b) if mailed by certified or registered mail, on the third
business day following mailing; or (c) if sent by overnight courier, on the date
of delivery as reflected in the records of the courier.

     

    18.           Survival. Except as
otherwise provided herein, all of the representations and warranties of the
Parties contained in this Agreement as well as the exhibits to this Agreement
and those contained in the documents delivered in connection with the Closing of
this Transaction, shall be true on and as of the Closing Date, as though made at
Closing. Any claims based upon this Agreement, including breach of
representations, warranties and indemnity obligations, shall survive the Closing
of this Transaction and remain in full force and effect for a period of one year
from the Closing Date, but not thereafter, and shall not be deemed merged in any
document or instrument executed or delivered at the Closing.

     

    19.           Incorporation of
Exhibits. All exhibits attached to this Agreement are hereby incorporated
herein by this reference.

     

    20.           Binding Effect;
Assignment. This Agreement shall inure to the benefit of and be binding
upon the parties hereto and their respective heirs, personal and legal
representatives, guardians, successors and permitted assigns. This Agreement
shall not be assigned by any Party without the prior written consent of the
other Parties.

     

    21.           Contract Interpretation;
Severability. All Parties have participated in the negotiation of this
Agreement. This Agreement shall not be construed either for or against either
Party by virtue of mere drafting. Capitalized terms shall carry the meaning
ascribed to such terms, even if such terms
appear before the actual definition thereof. If any provision hereof shall be
held invalid, illegal or unenforceable in any respect, such provision shall be
deemed modified to the extent necessary to make such provision enforceable to
the fullest extent permitted by law. In the event modification will not remedy
the invalidity, illegality or unenforceability of the provision, such provision
shall not affect any other provision hereof, and this Agreement shall be
construed as if such provision had never been contained herein.

     

     

    
      
        
        

      

      
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    22.           Waiver.
No delay or failure to exercise any right or remedy accruing to a party upon any
breach by the other party under this Agreement shall impair such right or remedy
or be construed as a waiver of any such breach theretofore or thereafter
occurring. The waiver of any condition or the breach of any term or condition
herein shall not be deemed to be a waiver of any other condition or of any
subsequent breach of any term, covenant or condition hereof.

     

    23.           Governing
Law; Attorneys' Fees. This Agreement shall be governed by and construed
and enforced in accordance with the laws of the State of Colorado. Any legal
action related to this Agreement shall be brought exclusively in the County of
Jefferson, State of Colorado or in the federal courts that include Jefferson
County, Colorado. In any such action, the court shall award to the prevailing
Party its costs, expenses, and reasonable attorneys' fees payable by the other
Party.

     

    24.           Confidentiality.

     

    
      
        	
              	
                a.

              	
                Without
      the prior written consent of both parties, no disclosure shall be made
      except as required by law. Any disclosure that one party (the "Disclosing
      Party") may desire to make, or may believe is required by law, must be
      provided to the other party in substantially final, or final, form not
      less than one business day prior to the day that the Disclosing Party
      intends to make such disclosure. If the other party reasonably objects to
      the disclosure to be
      made by the Disclosing Party, the two parties will work together to draft
      disclosure that is acceptable to both
parties.

              

      

    

     

    
      
        	
              	
                b.

              	
                Since
      both the Seller and the Buyer are subject to the reporting requirements of
      the 1934 Act, prior to signing this Agreement they will negotiate the
      language for a press release announcing the signing of this Agreement.
      Each of the Parties will use language similar to the press release to make
      any report on Form 8-K
required.

              

      

    

     

    
      
        	
              	
                c.

              	
                The
      Buyer agrees that all information provided by or on behalf of the Seller
      in connection with the contemplated Sale is confidential and shall not be
      used or disclosed except to those persons with a specific need to know
      such information, and then only if such persons agree in writing to
      protect the confidential nature of the
  information.

              

      

    

    
      
         

      

      
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                d.

              	
                Nothing
      herein is intended to terminate, amend, or otherwise modify the
      non­disclosure and confidentiality agreement between the parties dated
      February 7, 2007.

              

      

    

     

    25.           Further
Assurances. The Parties shall execute and deliver after the date hereof,
without additional consideration, such further assurances, instruments and
documents, and to take such further actions, as may be reasonably requested in
order to fulfill the intent of this Agreement and the transactions contemplated
hereby.

     

    26.           Counterparts.
This Agreement may be executed in any number of counterparts, each of which
shall be deemed to be an original and all of which together shall be deemed to
be one and the same instrument.

     

    IN
WITNESS WHEREOF, the Parties have executed this Agreement effective as of the
date set forth above.

     

    
      
        	SELLER:	 	 	BUYER:	 
	 	 	 	 	 
	ISONICS
      CORPORATION	 	 	ADVANCED MEDICAL ISOTOPES CORPORATION	 
	 	 	 	 	 
	
                /s/ 
      John Sakys    

              	 	 	
                /s/  
      James C. Katzaroff

              	 
	
                John
      Sakys, President   

              	 	 	
                James
      C. Katzaroff, President

              	 

      

    

     

     

     

     

     

     

    
      
         

      

      
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    EXHIBIT
A

    THE
ASSETS

     

    Assets
Relating to 111lndium

     

    Intellectual
Property owned by Isonics and related to the production of Indium-111 is focused
on the Chemical Separation of Indium from a Cadmium-112 target. Associated
processes in support of this separation method include the plating process used
to prepare an enriched Cadmiun -112 target, and the recovery of Cadmim-112. This
recovered cadmium is then recycled and used again to plate future targets for
irradiation.

     

    I.          Target
Plating:

     

    The UB
standard target is fabricated as a solid copper bar or plate. The plating
procedure developed is a two step process. The copper bar is first plated with a
silver coating. This reduces the amount of copper introduced into the chemical
process as well as the radio impurities produced in the copper during
irradiation.

     

    Enriched
cadmium is then plated over the silver surface. The plating procedure developed
is based upon a sulfate plating bath. The bath is used until it has been
depleted of cadmium.

     

    II.          Chemical
Separation:

     

    Indium-111
is separated from the target cadmium after dissolution of the cadmium from the
plated target. Indium is separated utilizing a liquid — liquid extraction
method. The indium is further purified using ion exchange chromatography.
Chemical purity is verified utilizing ICP­OES Spectroscopy. The extractions
are accomplished utilizing developed equipment specific to this process.
Equipment is a series of containers remotely manipulated and a series of traps
utilized to control any possible emissions to the air handling
system.

     

    III.          Target
recovery:

     

    The
dissolved cadmium from which Indium is separated is reserved and stored for
decay and eventual recycling into the process. After appropriate decay, several
targets are combined for recovery. The developed procedures utilize
precipitation and ion — exchange chromatography to remove all chemical and
radiochemical purities. The developed procedure results in the production of a
new plating bath.

     

    IV.            Customer
List

     

    V.           Assets
Located at Central Radiopharmaceutical Services, Buffalo, New York Hot cell
and remote handling manipulators

     

    ICP-OES
Spectrometer

     

    Four (4)
fume hoods

     

    Laboratory
benches under fume hoods

     

    Laboratory
benches in support closet

    Air
compressor in mezzanine area

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    Hot cell
ion chamber and supporting electronics 

     

    Capintech
dose calibrator and supporting electronics 

     

    Target
plating cells and supporting electronics

     

     

    Assets
relating to 225Actinium

     

    Contract
840/08624243/00265 between Isonics Corporation and Kurchatov Institute dated
July 14, 2004.

     

    Contract
840/08624390/14-09-03 between Isonics Corporation and Institute for Physics and
Power Engineering (IPPE) dated May 19, 2004 and amended on February 3, 2006 with
Amendment #1.

     

    Customer
List

     

     

    Assets
relating to 180xygen

     

    Production,
Marketing and Sales Agreement among Isonics Corporation, Global Scientific
Technologies and Center of Molecular Research dated July 25, 2001.

     

    Customer
List

     

     

     

     

     

    
 

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

     

     

    EXHIBIT
B

    Conduct
of Business Prior to Closing

     

    
      	
               
      

            	
              1.

            	
              The
      Seller has not been producing 111indium
      since January 2007.

            

    

    
      	
               
      

            	
              2.

            	
              The
      Seller and the producer of 111indium,
      Central Radiopharmaceutical Services (CRS), disagree on the amount of
      money owed to CRS for previous services and may enter into mediation if
      the dispute cannot be resolved.

            

    

    
      	
               
      

            	
              3.

            	
              The
      Drug Master File (DMF) for 111indium
      is not complete and has not been submitted to the FDA.

            
	 	4.	The
      second manufacturer of 225actinium,
      Kurchatov Institute, has not yet shipped evaluation samples of the
      material.

    

    
 

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    13exhibit_10-7.htm

    
      

    

    EXHIBIT
10.7

    
 

    EMPLOYMENT
AGREEMENT

     

    THIS AGREEMENT entered into as of January 15,
2008 and effective as of January 15, 2008 (the "Effective Date") by and between
Advanced
Medical Isotopes Corporation (AMIC) or its successors and/or assignees,
(hereinafter called the "Company") and Dr. Fu-Min Su, an individual residing at
1070 Pleasant View Road #105, Middleton, WI 53562, called the
"Executive").

     

    WITNESSETH: 

    
      

    

     

    WHEREAS, the Company and the
Executive desire to enter into an employment agreement to establish the rights
and obligations of the Executive and the Company in such employment
relationship;

     

    WHEREAS, the terms of this
Agreement have been approved by the Chief Executive Officer and the President of
the Company;

     

    NOW, THEREFORE, and in
consideration of the mutual covenants herein contained, the Company and the
Executive hereby mutually agree as follows:

     

    1.    Employment and
Duties.

     

    The
Company hereby employs the Executive and the Executive hereby accepts employment
with the Company upon the terms and conditions hereinafter set forth. The
Executive shall serve the Company as its Radiochemistry Manager. In such
capacity, the Executive shall report directly to the Company's General Manager
(Mr. James Madsen) and the Executive shall have all powers, duties, and
obligations as are normally associated with such position as described in
Exhibit I. The Executive shall further perform such other duties related to the
business of the Company as may from time to time be reasonably requested of him
by the GM or other senior Corporate Officers. The Executive shall devote all of
his/her skills, time and attention solely and exclusively to said position and
in furtherance of the business and interests of the Company except
for:

     

    (a)           time
spent in managing his personal, financial and legal affairs and serving on
corporate, civic or charitable boards or committees, in each case only if and to
the extent not substantially interfering with the performance of his
responsibilities to the Company, and:

     

    (b)           periods
of vacation to which he is entitled.

     

    Executive
shall promptly notify the Company of his/her election or appointment to any
corporate, civic or charitable boards or committees on or after the date of this
Agreement.

     

    2.    Term of
Employment.

     

    The
term of employment
(the "Term") shall begin on the Effective Date and shall expire on the fifth
anniversary of the Effective Date, subject, however, to prior termination, as
herein provided.

     

     

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

     

    3.            Base
Salary.

     

    The
Executive shall receive a monthly salary of $7,500 beginning upon reporting for
work. The initial base salary shall be reviewed at the first six month
anniversary from the Effective Date and then annually thereafter from the
Effective Date. Adjustments shall be made at the discretion of the CEO and upon
Board of Directors approval considering the performance of the company and
contributions of the Executive.

     

    In the
event the Company increases the Executive's initial Base Salary, the amount of
the initial Base Salary, together with any increase(s), shall be his/her Base
Salary. The Base Salary shall be payable in equal installments, in accordance
with the Company's regular payroll practices.

     

    4.            Bonus.

     

    Within
forty five (45) days of the close of each half of the Company's fiscal year,
during which Executive is employed by the Company, the Executive shall be
eligible to receive bonus payments ("Bonus") under the bonus plan established by
the CEO and Board of Directors for the Executive. These bonuses are to be paid
when cash flow allows or equity is raised in the amount that these Executive
bonuses may be paid without hurting the growth of the company. The Bonus
structure is described in Exhibit II The actual amount of the Bonus shall be
determined based on performance goals established and agreed to by the Executive
and by the CEO, within the
first ninety (90) days of each fiscal year and the same shall be provided in
writing to the Executive promptly thereafter, see Exhibit III.

     

    5.            Fringe
Benefits.

     

    The
Company health and medical programs are currently under development and not
available at this time. However, the company intends that such programs will be
made part of each regular employee's standard employment package. The Executive
shall be offered full participation in such company plans when available in
accordance with the normal participation rules when the plan is available and
developed.

     

    6.            Stock
Options.

     

    Executive
shall be eligible for all Executive Stock Option Plans that are available to
other Executives. The Board of Directors will be responsible for the general
employee Stock Option Plans annually.

     

     

     

     

    
 

    
      
        
           

        

        
          2

          
            

          

        

        
           

        

      

    

    

    7.    Provision
of Directors and Officers Insurance.

     

    N/A

     

    8.        
   Termination of
Employment.

     

    (a)    Termination
of Employment by the Company.

     

    The Executive's employment hereunder
may be terminated by the Company without any breach of this Agreement
under the following circumstances:

     

    (i)    Without
Cause.

     

    The
Company may terminate the Executive's employment hereunder without
Cause.

     

    (ii)      
    Cause.

     

    The
Company may terminate the
Executive's employment hereunder for Cause.

     

    (iii)          Death
or Disability.

     

    The
Executive's employment hereunder shall terminate upon his death and may be
terminated by the Company in the event of his Disability for a continuous period
of at least ninety (90) days. If Executive becomes subject to a Disability which
is expected to last for a continuous period of at least ninety (90) days, the
Company may appoint an acting Manager, during such ninety (90) day period
without any breach of this Agreement; provided, that Executive shall be entitled
to continue receiving Base Salary and benefits under this Agreement during such
ninety (90) day period.

     

    (b)    Termination of Employment by
Executive.

     

    The Executive may terminate his
employment at any time with or without Good Reason. With the exception of
personal hardship, the Executive is expected to provide thirty (30) days notice
of a voluntary termination of employment.

     

    (c)    Notice of
Termination.

     

    Any
termination of the Executive's employment by the Company hereunder, or by the
Executive other than termination upon the Executive's death, shall be
communicated by written Notice of Termination to the other party. The Company
shall provide a two week
or fourteen (14) termination notice; except when such notice would be
harmful to the Company's financial status or for termination for
Cause.

     

     

     

    

    
      
        
           

        

        
          3

          
            

          

        

        
           

        

      

    

    

    9.    Amounts Payable Upon
Termination of Employment.

     

    
      (a)    Termination by the Company
Without Cause or by the Executive for Good Reason.

    

     

    In the
event Executive's employment is terminated by the Company without Cause or by
the Executive for Good Reason. Executive shall be entitled to the following
payments and benefits: The determination of "Good Reason" is in the sole
discretion of the Company.

     

    (i)      
     payment of all Accrued Obligations in a lump sum
in cash as soon as practicable but no later than ninety (90) days following the
Date of Termination:

     

    (ii)           payment
of an amount equal to one (1) times the sum of Executive's monthly current Base
Salary plus any portion of the Annual Bonus allocated by the Board of Directors
for the period of employment.

     

    (iii)          immediate
pro-rated vesting of all outstanding options, stock grants, shares of restricted
stock and any other equity incentive compensation; provided, that the stock
options shall be exercisable only until the earlier to occur of (A) two (2)
years from the date of the Executive's termination, or (B) the date the option
would have otherwise expired if the Executive had not terminated employment:
and

     

    (iv)          disability
and other welfare plan benefits (other than continued group long-term disability
coverage) for Executive and Executive's spouse/family, which are generally
available to executives of the Company, for a period of one (1) year from the
Date of Termination at the same cost to the Executive as is charged to such
executives from time to time for comparable coverage.

     

    
      (b)            Termination by Executive
Other Than for Good Reason or by the Company for
Cause.

    

     

    In the
event that the Executive's employment is terminated by Executive other than for
Good Reason, as determined by the Company, or by the Company for Cause, the
Executive shall be entitled only to the payments and benefits set forth
below:

     

    (i)     
      as of the Date of Termination, any Base
Salary that is accrued but unpaid, any vacation that is accrued but unused and
any business expenses that are unreimbursed; and

     

    (ii)           any
other rights and benefits (if any) provided under plans and programs of the
Company (excluding any bonus program), determined in accordance with the
applicable terms and provisions of such plans and programs.

     

    (c)           
Disability.

     

    If the
Executive's employment is terminated due to Disability, Executive shall be
entitled to the following payments and benefits:

     

    (i)           
payment of all Accrued Obligations in a lump sum in cash as soon as practicable
but no later than ninety (90) days following the Date of
Termination:

    

    
      
        
           

        

        
          4

          
            

          

        

        
           

        

      

    

    

    (ii)           payment
of an amount equal to one (1) times the sum of Executive's monthly current Base
Salary plus any portion of the Annual Bonus allocated by the Board of Directors
for the period of employment.

     

    (iii)           immediate
vesting of all outstanding options, stock grants, shares of restricted stock and
any other equity incentive compensation; provided, that the stock options shall
be exercisable only until the earlier to occur of (A) two (2) years from the
date of the Executive's termination, or (B) the date the option would have
otherwise expired if the Executive had not terminated employment;
and

     

    (iv)          disability
and other welfare plan benefits (other than continued group long-term disability
coverage) for Executive and Executive's family, which are generally available to
executives of the Company, for a period of one (1) year from the Date of
Termination at the same cost to the Executive as is charged to such executives
from time to time for comparable coverage.

     

    Notwithstanding
any other provision hereof, if Executive dies prior to the time that all
payments described in this Section 9(c) have been completed, such payments and
benefits shall be paid to the Executive's estate.

     

    (d)       
    Death.

     

    If the
Executive's employment is terminated by death, Executive's estate shall be
entitled to the payment of all Accrued Obligations in a lump sum in cash as soon
as practicable but no later than ninety (90) days following the Date of
Termination.

     

    (e)         
  No Duty to
Mitigate Damages.

     

    After any
Date of Termination, the Executive shall have no obligation to seek other
employment, but shall have the right to be otherwise employed, and any
compensation of any type whatsoever received by the Executive in connection with
such employment shall not be offset by the Company against any of the
obligations of the Company under this Agreement.

     

    10.    Restrictive
Covenants.

     

    The
Executive agrees that, during the term of this Agreement, including any
extension thereof, and for a period of one (1) year thereafter, he shall not,
directly or indirectly:

     

    (a)           within
the Area, on the Executive's own behalf, or in the service of or on behalf of
others, engage in or provide services substantially similar to those services he
provides for the Company for a Competing Business. For purposes of this Section
10(a), the Executive acknowledges that the Business of the Company is conducted
in the Area; of production, import for resale, and distribution of radioisotopes
for use in the medical and/or homeland defense industries and as may be
authorized for involvement by the Board of Directors.

     

    (b)           on
Executive's own behalf or in the service of or on behalf of any other person or
entity, solicit or divert, or attempt to solicit or divert, to a Competing
Business. any person or entity who was an actual or actively sought prospective
client or customer of the Company, with whom the Executive had material contact
during the last one (1) year of employment with the Company or about whom the
Executive acquired Confidential Information during
the Executive's last one (1)
year of employment with the Company, or any representative of any such
client or customer; and

     

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

     

    (c)          
on the Executive's own behalf or in the service of or on behalf of others,
solicit,
divert or hire or attempt to solicit, divert or hire or assist anyone else in
soliciting, diverting or hiring any person who, at any time within the period
commencing one year prior to the Date of Termination and ending two (2) years
after the Date of Termination, was, is or shall be an employee of the Company
(whether or not such employment is full-time or is pursuant to a written
contract with the Company).

     

    11.    Ownership and Protection of
Proprietary Information.

     

    (a)        
   Confidentiality.

     

    All
Confidential Information and Trade Secrets and all physical embodiments thereof
received or developed by the Executive while employed by the Company are
confidential to and are and will remain the sole and exclusive property of the
Company. Except to the extent necessary to perform the duties assigned to him by
the Company, the Executive will hold such Confidential Information and Trade
Secrets in trust and strictest confidence, and will not use, reproduce,
distribute, disclose or otherwise disseminate the Confidential Information and
Trade Secrets or any physical embodiments thereof and may in no event take any
action causing or fail to take the action necessary in order to prevent, any
Confidential Information and Trade Secrets disclosed to or developed by the
Executive to lose its character or cease to qualify as Confidential Information
or Trade Secrets.

     

    (b)      
     Return of Company
Property.

     

    Upon
request by the Company, and in any event upon termination of the employment of
the Executive with the Company for any reason, as a prior condition to receiving
any final compensation hereunder (including payments under Section 9 hereof),
the Executive will promptly deliver to the Company all property belonging to the
Company, including, without limitation, all Confidential Information and Trade
Secrets (and all embodiments thereof) then in the Executive's custody, control
or possession.

     

    (c)  
         Survival.

     

    The
covenants of confidentiality set forth herein will apply on and after the
date hereof to any
Confidential
Information and Trade Secrets disclosed by the Company or developed by
the
Executive prior to or after the date hereof. The covenants restricting
the use of Confidential Information will continue to survive the termination of
this Agreement.

     

    12.    Non-exclusivity of
Rights.

     

    Nothing in this Agreement shall prevent
or limit the Executive's continuing or future participation in any benefit, bonus, incentive or
other plan or program provided by the Company or any of its Affiliated Companies and for which the
Executive may qualify, nor shall anything herein limit or otherwise prejudice such rights as the
Executive may have under any other agreements with the Company or any Affiliated Companies, including,
but not limited to stock option or restricted stock agreements. Amounts which are
vested benefits or which the Executive is otherwise entitled to receive under any plan or program of
the Company or any Affiliated Companies at or subsequent to the Date of Termination
shall be payable in accordance with such plan or
program.

     

     

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    
13.            Full
Settlement.

     

    The
Company's obligation to make the payments provided for in this Agreement and
otherwise to perform its obligations hereunder shall not be affected by any
circumstances, including, without limitation, any set-off, counterclaim,
recoupment, defense or other right which the Company may have against the
Executive or others whether by reason of the subsequent employment of the
Executive or otherwise. In no event shall the Executive be obligated to seek
other employment by way of mitigation of the amounts payable to the Executive
under any of the provisions of this Agreement. In the event that the Executive
shall in good faith give a Notice of Termination for Good Reason and it shall
thereafter be determined that Good Reason did not take place, the employment of
the Executive shall, unless the Company and the Executive shall otherwise
mutually agree, be deemed to have terminated, at the date of giving such
purported Notice of Termination, by mutual consent of the Company and the
Executive and, except as provided in the last preceding sentence, the Executive
shall be entitled to receive only those payments and benefits which he would
have been entitled to receive at such date had he terminated his employment
voluntarily at such date under this Agreement.

     

    14.            Definitions.

     

    (a)           "Accrued
Obligations" shall mean (i) the Executive's full Base Salary through the Date of
Termination, (ii) any unpaid but accrued Bonus, (iii) the product of the total
Bonus paid to the Executive for the last full fiscal year of the Company and a
fraction, the numerator of which is the number of days in the current fiscal
year of the Company through the Date of Termination, and the denominator of
which is 365, (iv) any compensation previously deferred by the Executive
(together with any accrued earnings thereon) and not yet paid by the Company and
any accrued vacation pay for the current year not yet paid by the Company, (v)
any amounts or benefits owing to the Executive or to the Executive's
beneficiaries under the then applicable employee benefit plans or policies of
the Company and (vi) any amounts owing to the Executive for reimbursement of
expenses properly incurred by the Executive prior to the Date of Termination and
which are reimbursable in accordance with the reimbursement policy of the
Company described in Section 5(a).

     

    (b)           "Affiliated
Company" shall mean any company controlling, controlled by or
under common control with the Company.

     

    (c)           "Area"
shall mean the United States.

     

    (d)           "Base
Salary" shall have the meaning set forth in Section 3.

     

    (e)           "Bonus"
shall have the meaning set forth in Section 4

     

    (f)           "Business
of the Company" shall mean any business that involves the manufacture,
production, sale, marketing, promotion, exploitation, development, licensing or
distribution of radioisotope devices used in the treatment of
cancer.

     

    (g)           "Cause"
shall mean either: (i) any act that constitutes, on the part of the Executive,
fraud or dishonesty that directly results in material injury to the Company
or the conviction of a felony; or (ii) the Executive materially breaches this
Agreement, provided, however, that in case of Clause (ii) above, such conduct
shall not constitute Cause unless the Board of Directors shall have delivered to
the Executive notice setting forth with specificity (A) the
conduct deemed to qualify as Cause, (B) reasonable action that would remedy such
objection, and (C) a reasonable time (not less than thirty (30) days) within
which the Executive may take such remedial action, and the Executive shall not
have taken such specified remedial action within such specified reasonable
time.

     

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    

    (h)           A
"Change of Control" means: (i) the acquisition by any individual, entity or
group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities
Exchange Act of 1934, as amended (the "Exchange Act") (a "Person") of beneficial
ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act)
of voting securities of the corporation where such acquisition causes such
person to own thirty-five percent (35%) or more of the combined voting power of
the then outstanding voting securities of the Company entitled to vote generally
in the election of directors (the "Outstanding Company Voting Securities");
provided, however, that for purposes of this Subsection (i), the following
acquisitions shall not be deemed to result in a Change of Control: (A) any
acquisition directly from the Company, (B) any acquisition by the Company, (C)
any acquisition by any employee benefit plan (or related trust) sponsored or
maintained by the Company or any corporation controlled by the Company or (D)
any acquisition by any corporation pursuant to a transaction that complies with
clauses (A), (B) and (C) of Subsection (iii) below; and provided, further, that
if any Person's beneficial ownership of the Outstanding Company Voting
Securities reaches or exceeds thirty-five percent (35%) as a 'result of a
transaction described in clause (A) or (B) above, and such Person subsequently
acquires beneficial ownership of additional voting securities of the Company,
such subsequent acquisition shall be treated as an acquisition that causes such
Person to own thirty-five percent (35%) or more of the Outstanding Company
Voting Securities; or (ii) individuals who, as of the date hereof, constitute
the Board (the "Incumbent Board") cease for any reason to constitute at least a
majority of the Board; provided, however, that any individual becoming a
director subsequent to the date hereof whose election, or nomination for
election, by the Company's shareholders, was approved by a vote of at least
two-thirds of the directors then comprising the Incumbent Board shall be
considered as though such individual were a member of the Incumbent Board, but
excluding, for this purpose, an such individual whose initial assumption of
office occurs as a result of an actual or threatened election contest with
respect to the election or removal of directors or other actual or threatened
solicitation of proxies or consents by or on behalf of a Person other than the
Board; (iii) the approval by the shareholders of the Company of a
reorganization, merger or consolidation or sale or other disposition of all or
substantially all of the assets of the Company ("Business Combination") or, if
consummation of such Business Combination is subject, at the time of such
approval by shareholders, to the consent of any government or governmental
agency, the obtaining of such consent (either explicitly or implicitly by
consummation); excluding, however, such a Business Combination pursuant to which
(A) all or substantially all of the individuals and entities who were the
beneficial owners of the Outstanding Company Voting Securities immediately prior
to such Business Combination beneficially own, directly or indirectly, more than
sixty percent (60%) of, respectively, the then outstanding shares of common
stock and the combined voting power of the then outstanding voting securities
entitled to vote generally in the election of directors, as the case may be, of
the corporation resulting from such Business Combination including, without
limitation, a corporation that as a result of such transaction owns the Company
or all or substantially all of
the Company's assets either directly or through one or more subsidiaries) in
substantially the same proportions as their ownership, immediately prior to such
Business Combination of the Outstanding Company Voting Securities, (B) no Person
(excluding any employee benefit plan (or related trust) of the Company or such
corporation resulting from such Business Combination) beneficially owns,
directly or indirectly, thirty-five percent (35%) or more of, respectively, the
then outstanding shares of common stock of the corporation resulting from such
Business Combination or the combined voting power of the then outstanding voting
securities of such corporation
except to the extent that such ownership existed prior to the Business
Combination and (C) at least a majority of the members of the board of directors
of the corporation resulting from such Business Combination were members of the
Incumbent Board at the time of the execution of the initial agreement, or of the
action of the Board, providing for such Business Combination: or (iv) approval
by the shareholders of the Company of a complete liquidation or dissolution of
the Company.

     

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

     

    (i)        
   "Change of Control Date" shall mean the date on which a Change
of Control shall be deemed to have occurred.

     

    (j)      
     "Code" shall mean the Internal Revenue Code of
1986, as amended.

     

    (k)           "Company
Information" means Confidential Information and Trade Secrets.

     

    (1)          
"Competing Business" means any person, firm, corporation, joint venture
or other
business entity which is engaged in the Business of the Company within the
Area.

     

    (m)           "Confidential
Information" means confidential data and confidential information relating to
the business of the Company (which does not rise to the status of a trade secret
under applicable law) which is or has been disclosed to Executive or of which
Executive became aware as a consequence of or through his employment with the
Company and which has value to the Company and is not generally known to its
competitors and which is designated by the Company as confidential. Confidential
Information shall not include any data or information that (i) has been
voluntarily disclosed to the general public by the Company; (ii) has been
independently developed and disclosed to the general public by others: or (iii)
otherwise enters the public domain through lawful means.

     

    (n)           "Date
of Termination" shall mean (i) if the Executive's employment is terminated by
his death, the date of his death; (ii) if the Executive's employment is
terminated by the Company as a result of Disability pursuant to Paragraph
8(a)(iii). the date that is thirty (30) days after Notice of Termination is
given, provided, the Executive shall not have returned to the performance of his
duties on a full-time basis during such thirty (30) day period; (iii) if the
Executive terminates his employment for Good Reason pursuant to Paragraph 8(b),
the date that is ten (10) days after Notice of Termination is given (provided
that the Company does not cure the event which gives the Executive Good Reason
during the ten (10) day period); (iv) if the Executive terminates his employment
other than for Good Reason, the date that is two (2) weeks after Notice of
Termination is given, provided, in the sole discretion of the Company, such date
may be any earlier date after Notice of Termination is given; (v) if the
Executive's employment is terminated by the Company without Cause pursuant to
Section 8(a)(i), the date that is two (2) weeks after Notice of Termination is
given; or (vi) if the Executive's employment is terminated by the Company for
Cause pursuant to Paragraph 8(a)(ii), the date on which the Notice of
Termination is given.

     

    (o)           "Disability"
shall mean physical or mental illness which would entitle the Executive to
receive full long-term disability benefits under the Company's long-term
disability plan on terms substantially similar to those of the long-term
disability plan as in effect as of the financial breakeven date.

     

    (p)           "Good
Reason" shall mean the occurrence of one of the following events which occurs
without the Executive's consent (provided the Company does not cure such event
on a
retroactive basis to the extent possible within ten (10) days following its
receipt of the Executive's Notice of Termination): (i) the Executive's title,
position, authority or responsibilities (including reporting responsibilities
and authority) are changed in a materially adverse manner; (ii) the Executive's
Base Salary is reduced for any reason other than in connection with the
termination of his employment or mutual agreement; (iii) for any reason other
than in connection with the termination of the Executive's employment, the
Company materially reduces any fringe benefit provided to the Executive under
Section 5, below the level of such fringe benefit provided generally to other
actively employed similarly situated executives of the Company (notwithstanding
the foregoing, if the Company agrees to fully compensate the Executive for any
such material reduction for a period ending on the earlier to occur of (A) the
date such fringe benefit is no longer provided to other actively employed
similarly situated executives of the Company or (B) four (4) years, then such
event shall not constitute Good Reason): (iv) the Company otherwise materially
breaches, or is unable to perform its obligations under this Agreement; or (v)
the occurrence of a Change of Control.

     

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

     

    Notwithstanding
the foregoing, the occurrence of one of the events in Paragraphs (i) through (v)
hereof shall not be considered Good Reason for the Executive's termination,
unless the Executive delivers a Notice of Termination pursuant to Paragraph 8
hereof, within sixty (60) days after the Executive has actual notice of the
occurrence of any of the events listed in Paragraphs (i) through (v)
hereof.

     

    (q)            "Notice
of Termination" shall mean a notice that shall indicate the specific
termination provision in this Agreement relied upon, and shall set forth in
reasonable detail the facts and circumstances claimed to provide a basis for
termination of the Executive's employment under the provision so
indicated.

     

    (r)         
   "Subsidiary" shall mean any majority owned subsidiary of the
Company.

     

    (s)            "Trade
Secrets" means information of the Company, without regard to Form,
including, but not limited to, technical or nontechnical data, formulas,
patterns, compilations, programs, devices, methods, techniques, drawings,
processes, financial data, financial plans. product or service plans or lists of
actual or potential customers or suppliers which is not commonly known by or
available to the public and which information (i) derives economic value, actual
or potential, from not being generally known to, and not being readily
ascertainable by proper means by, other persons who can obtain economic value
from its disclosure or use; and (ii) is the subject of efforts that are
reasonable under the circumstances to maintain its secrecy.

     

    15.    Assignment and Survivorship
of Benefits.

     

    The
rights and obligations of the Company under this Agreement shall inure to the
benefit of, and shall be binding upon, the successors and assigns of the
Company. If the Company shall at any time be merged or consolidated into, or
with, any other company, or if substantially all
of the assets of the Company arc transferred to another company, then the
provisions of this Agreement shall be binding upon and inure to the benefit of
the company resulting from such merger or consolidation or to which such assets
have been transferred, and this provision shall apply in the event of any
subsequent merger, consolidation, or transfer.

     

     

     

     

    

    
      
        
           

        

        
          10

          
            

          

        

        
           

        

      

    

    

    16.            Notices.

     

    Any
notice given to either party to this Agreement shall be in writing, and shall be
deemed to have been given when delivered personally or sent by certified mail,
postage prepaid, return receipt requested, duly addressed to the party
concerned, at the address indicated below or to such changed address as such
party may subsequently give notice of:

     

    If to the
Company:

     

    Advanced
Medical Isotopes Corporation 

    6308
Okanogan Street

    Kennewick,
WA

     

    Attn:
William J. Stokes, Chief Executive Officer 

     

    If to the
Executive:

     

    1070
Pleasant View Road #105 

    Middleton,
WI 53562

     

    17.            Indemnification.

     

    The
Executive shall be indemnified by the Company, to the extent provided in the
case of officers under the Company's Certificate of Incorporation or
Bylaws.

     

    18.            Taxes.

     

    Anything
in this Agreement to the contrary notwithstanding, all payments required to be
made hereunder by the Company to the Executive shall be subject to withholding
of such amounts relating to taxes as the Company may reasonably determine that
it should withhold pursuant to any applicable law or regulations. In lieu of
withholding such amounts, in whole or in part, however, the Company may, in its
sole discretion, accept other provision for payment of taxes, provided that it
is satisfied that all requirements of the law affecting its responsibilities to
withhold such taxes have been satisfied.

     

    19.            Enforcement of
Rights.

     

    All legal
and other fees and expenses, including, without limitation, any arbitration
expenses, incurred by the Executive in connection with seeking to obtain or
enforce any right or benefit provided for in this Agreement, or in otherwise
pursuing any right or claim, shall be paid by the Company, to the extent
permitted by law, provided that the Executive is successful in whole or in part
as to such claims as the result of litigation, arbitration, or settlement. Under
a partial finding for the Executive, the Company shall be obligated to pay such
legal fees as associated with the upheld claim or prorated to the award vs. the
claim.

     

    In the
event the Company refuses or otherwise fails to make a payment when due and it
is ultimately decided that the Executive is entitled to such payment, such
payment shall be increased to reflect an interest equivalent for the period of
delay, compounded annually, equal to four (4) percentage points over the Prime
Interest Rate as posted periodically in the Wall Street Journal in effect as of
the date the payment was first due.

    
 

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

     

    20.            Governing
Law/Captions/Severance.

     

    This
Agreement shall be construed in accordance with, and pursuant to, the laws of
the State of Washington. The captions of this Agreement shall not be part of the
provisions hereof, and shall have no force or effect. The invalidity or
unenforceability of any provision of this Agreement shall not affect the
validity or enforceability of any other provision of this Agreement. Except as
otherwise specifically provided in this paragraph, the failure of either party
to insist in any instance on the strict performance of any provision of this
Agreement or to exercise any right hereunder shall not constitute a waiver of
such provision or right in any other instance.

     

    21.            Entire
Agreement/Amendment.

     

    This
instrument contains the entire agreement of the parties relating to the subject
matter hereof, and the parties have made no agreement, representations, or
warranties relating to the subject matter of this Agreement that are not set
forth herein. This Agreement may be amended at any time by written agreement of
both parties, but it shall not be amended by oral agreement. This Agreement
terminates any and all prior Agreements relating to the terms of Executive's
employment.

     

    IN
WITNESSETH WHEREOF, the parties have executed this Agreement on the date first
above written.

     

     

    
      
        	 	 	Advanced
      Medical Isotope Corporation	 
	 	 	 	 
	
                 

              	
                 

              	By: 
      William J. Stokes, CEO	 
	 	 	 	 
	 	 	/s/ 
      William J. Stokes, CEO	 
	 	 	Title:
      Chief Executive Officer	 

      

    

     

     

    
      	 	 	EXECUTIVE:	 
	 	 	 	 
	
               

            	
               

            	Fu-Min
      Su, PhD	 
	 	 	 	 
	 	 	/s/ 
      Su, Fu-Min	 
	 	 	Title:
      Radiochemistry Manager	 
	 	 	
              1/30/2008

            	 

    

     

    

    
      
        
           

        

        
          12

          
            

          

        

        
           

        

      

    

    

    Exhibit
I

     

     

    Position
Title

     

    Radiochemistry
Manager

     

    Position
Description:

     

    Dr. Su
will be the Company's chief radiochemistry manager. Dr. Su will report directly
to the General Manger with full access to corporate Executives, including the
Company President, Mr. James Katzaroff and the Company CEO, Mr. William J.
Stokes.

     

    Eligibility
Requirements:

     

    Dr. Su's
credentials are fully compliant with the position requirements Duties &
Responsibilities:

     

    In this
position, Dr. Su shall be responsible for the operations and product quality of
the company's facilities and equipment which produce radiochemical and
radiopharmaceutical products.

     

    Dr. Su
shall be an integral part of the company management team and shall be requested,
from time to time, to participate in company planning, selection and management
of employees, product development planning, new facility design and equipment
selection, and new facility or equipment startup testing.

     

    Expectation
of the Company:

     

    Dr. Su
will be expected to represent the Company as a senior company manager both
within the corporate environment and professional settings or events, such as
conferences or trade shows.

     

    Dr. Su
will be expected to participate in production efficiency enhancements, new
product
development, product marketing, business sector expansion
opportunities.

     

    The
company expects that operations under Dr. Su's supervision be conducted in a
businesslike, professional, and lawful manner; all products meet or exceed
customer expectations for quality, quantity, and delivery schedule; and all
activities are conducted in a safe and environmentally responsible
manner.

     

    Authorities:

     

    
      	
               
      

            	
              ·

            	
              Budget
      and Expenditures: Budgets shall be established at the outset of the fiscal
      year. Dr. Su shall have the authority over budget expenditures for his
      areas of responsibility in accordance with corporate accounting
      practices.

            

    

    
      	
               
      

            	
              ·

            	
              Personnel
      Actions: Dr. Su shall have authority over personnel assigned to the
      radiochemistry and radiopharmaceutical areas in accordance with company
      practice established in corporate personnel policy
  manuals.

            

    

    

    
      
        
           

        

        
          13

          
            

          

        

        
           

        

      

    

    

    Exhibit
II

     

    Position
Title

     

    Compensation
Package

     

    Base
Salary

     

    
      	
               
      

            	
              ·

            	
              Annual
      Base Salary = $90,000 per year or $7,500 monthly

            
	 	 	 
	 	      
              ·

            	Salary
      to be reviewed at first six month interval, annually
  thereafter
	 	 	 
	 	      
              ·

            	Signup
      Bonus of 50,000 shares of AMIC Stock upon acceptance of offer
	 	 	 
	 	      
              ·

            	      
              Early
      Acceptance Incentive - Additional 15,000 shares of AMIC Stock for acceptance
      of offer by COB (5pm PST) on Tuesday, January 15,
      2008

            
	 	 	 
	 	      
              ·

            	      
              Medical
      Insurance Program participation when
  available

            

    

     

     

    Bonus
Eligibility

     

    
      	 	      
              ·

            	      
              Full
      participation in Corporate Sponsored Programs for Management level
      positions

            
	 	 	 
	 	      
              ·

            	      
                    
                Participation
      in future Stock Option and Incentive Programs consistent with Dr. Su's
      Management level position, as
  developed

              

            

    

     

     

     

     

     

     

     

     

     

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

    
 

    Exhibit
III

     

    Performance
Goals

     

     

     

     

     

    To be
developed as part of Bonus Program management

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    15

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