Document:

ENERGY
        

      NORTHWEST

      People
        ∙Vision
        ∙Solutions

        
          

        

      

      P.O.
        Box
        968 ∙ Richland,
        WA ∙ 99352-0968

      

      CONTRACT
        MODIFICATION

      

      QUALITY
        CLASS G

      

      
        	
                Issued
                  by:

              	
                J.G.
                  Paetel

              
	 	 
	
                CONTRACTOR

              	
                ISORAY,
                  INC.

              
	 	
                350
                  Hills Street

              
	 	
                Richland,
                  WA 99354

              
	 	 
	
                Contract
                  Number:

              	
                X40224

              
	
                Modification
                  Number:

              	
                12

              
	
                Modification
                  Date:

              	
                October
                  25, 2005

              

      

      

      CONTRACT
        PERIOD OF PERFORMANCE

      

      
        	
                State
                  Date:

              	
                January
                  1, 2003

              
	
                Estimated
                  Completion Date:

              	
                December
                  31, 2006

              

      

      

      The
        completion date, Contract price and all other terms, covenants and conditions
        of
        the above-referenced Contract, except as duly modified by this and previous
        amendments, if any, remain in full force and effect.

         

        
          

        

      

      

      1. DESCRIPTION
        OF MODIFICATION

      

      The
        subject Contract is herein amended to incorporate the following:

      

      Effective
        January 1, 2006 extend lease through December 31, 2006. Increase rent and
        janitorial rates by 3.3% according to the Consumer Price Index for CY
        2004.

      

      Janitorial
        rates are $.083 per sf/mo.

      

      Effective
        01/01/06 Appendix D entitled, APEL Graduation Policy, 10.0 is hereby
        incorporated.

      

      
        	
                cc:

              	
                AR
                  (PE60)

              
	 	
                APEL
                  (350)

              

      

       

      
        
           

        

        
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            1 of
            6

          
            

          

        

        
           

        

      

      
        ENERGY
          NORTHWEST
CONTRACT MODIFICATION
        (CONTINUED)

      
        
          

        

      

      

      
        	 	
                Contract
                  Number:

              	
                X40224

              
	 	
                Modification
                  Number:

              	
                12

              

      

       

       

      
        
          	Effective
                  January 1, 2006	 	 	 	 	 	 	 
	
                  Rented
                    Space Type

                	 	
                  Sq
                    Ft

                	
                   

                	
                  Rate,
                    $/SF/MO

                	
                   

                	
                  Monthly
                    Charge

                	 
	
                  Entrepreneur
                    Lab 221

                	 	 	
                  524

                	 	
                  $

                	
                  1.138

                	 	
                  $

                	
                  596.31

                	 
	
                  Entrepreneur
                    Lab 253

                	 	 	
                  624

                	 	
                  $

                	
                  1.138

                	 	
                  $

                	
                  710.11

                	 
	
                  Entrepreneur
                    Lab 236

                	 	 	
                  760

                	 	
                  $

                	
                  1.138

                	 	
                  $

                	
                  864.88

                	 
	
                  Entrepreneur
                    Lab 255 (N. Half)

                	 	 	
                  296

                	 	
                  $

                	
                  1.138

                	 	
                  $

                	
                  336.85

                	 
	
                  *Entrepreneur
                    Lab 255 (S. Half)

                	 	 	
                  296

                	 	
                  $

                	
                  1.138

                	 	
                  $

                	
                  336.84

                	 
	
                  *High
                    Bay -
                    General

                	 	 	
                  208

                	 	
                  $

                	
                  1.436

                	 	
                  $

                	
                  298.69

                	 
	
                  Total
                    for Labs

                	 	 	 	 	 	 	 	
                  $

                	
                  3,143.68

                	 
	
                  *Office
                    252-2

                	 	 	
                  133

                	 	
                  $

                	
                  1.722

                	 	
                  $

                	
                  229.03

                	 
	
                  *Office
                    252-3

                	 	 	
                  133

                	 	
                  $

                	
                  2.292

                	 	
                  $

                	
                  304.84

                	 
	
                  *Office
                    252-4

                	 	 	
                  158

                	 	
                  $

                	
                  2.292

                	 	
                  $

                	
                  362.14

                	 
	
                  Total
                    for Offices

                	 	 	 	 	 	 	 	
                  $

                	
                  896.00

                	 
	
                  Janitorial
                    Lab 253

                	 	 	
                  624

                	 	
                  $

                	
                  0.083

                	 	
                  $

                	
                  51.79

                	 
	
                  Janitorial
                    Lab 221

                	 	 	
                  524

                	 	
                  $

                	
                  0.083

                	 	
                  $

                	
                  43.49

                	 
	
                  Janitorial
                    Lab 236

                	 	 	
                  760

                	 	
                  $

                	
                  0.083

                	 	
                  $

                	
                  63.08

                	 
	
                  Janitorial
                    Lab 255 (N. Half)

                	 	 	
                  296

                	 	
                  $

                	
                  0.083

                	 	
                  $

                	
                  24.57

                	 
	
                  *Janitorial
                    Lab 255 (S. Half)

                	 	 	
                  296

                	 	
                  $

                	
                  0.083

                	 	
                  $

                	
                  24.56

                	 
	
                  *Janitorial
                    Lab 2-252-2

                	 	 	
                  133

                	 	
                  $

                	
                  0.083

                	 	
                  $

                	
                  11.04

                	 
	
                  *Janitorial
                    Lab 2-252-3

                	 	 	
                  133

                	 	
                  $

                	
                  0.083

                	 	
                  $

                	
                  11.04

                	 
	
                  *Janitorial
                    Lab 2-25-24

                	 	 	
                  158

                	 	
                  $

                	
                  0.083

                	 	
                  $

                	
                  13.11

                	 
	
                  Total
                    for Janitorial

                	 	 	
                   

                	 	 	 	 	
                  $

                	
                  262.68

                	 
	
                  Grand
                    Total

                	 	 	 	 	 	 	 	
                  $

                	
                  4,282.36

                	 
	
                  *Previously
                    at 2005 Rate

                	 	 	 	 	 	 	 	 	 	 

        

      

      
 

      
        
           

        

        
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      ENERGY
        NORTHWEST

      CONTRACT
        MODIFICATION (CONTINUED)

      
        
          

        

      

      

      
        	 	
                Contract
                  Number:

              	
                X40224

              
	 	
                Modification
                  Number:

              	
                12

              

      

       

      2.
        EXECUTION

       

      
        	 	 	 
	 	ISORAY,
                INC.
	 
 	 
 	 
 
	Date: 10/27/05	By:  	/s/ Michael
                Dunlop
	 	
                
Michael
                Dunlop
	 	CFO

        	 	 	 
	 	ENERGY
                NORTHWEST
	 
 	 
 	 
 
	Date: 10/27/05	By:  	/s/ Jerry
                G. Paetel
	 	
                
J.
                G. Paetel
	 	Principal
                Contracting Officer

      

       

      

      
        
           

        

        
          Page
            3 of
            6

          
            

          

        

        
           

        

      

      EXHIBIT
        D

      

      

      

      

      

      

      APEL
        Graduation Policy 10.0

      

      

      

      

      

      

      

      
        
           

        

        
          Page
            4 of
            6

          
            

          

        

        
           

        

      

      10.0
        GRADUATION POLICY

      

      APEL
        has
        received subsidies in the form of a federal grant and gratis services and
        equipment from other public institutions such as the City of Richland, the
        Port
        of Benton, and TRIDEC. The contributions were provided to enable APEL
        flexibility in pricing its space below commercial rates. New startup ventures
        will benefit from the lower rental rates for an “incubation”
        period
        of from one to five years, after which they are expected to “graduate”
        from
        APEL, relocate, and continue to grow and prosper in the private business
        world.

      

      Tenants
        shall sign a contract agreeing to provide a “graduation”
        plan
        with timetables and measurable goals by the completion of the second year
        of
        occupancy. This plan shall provide the detailed progress schedule(s) showing
        the
        resources available and required, firm commitments, and pro-forma financial
        statements for anticipatory costs and revenues, which convincingly demonstrate
        an achievable Business Plan leading to “graduation”
        from
        APEL. Progress on this plan shall be reviewed semiannually with the APEL
        Director and/or selected APEL professional staff. Normally, it is expected
        that
        tenants will make positive measurable progress on their business goals
        associated with graduation within the planned timeframe.

      

      Under
        special circumstances, the APEL Director may approve contract extensions
        for
        periods up to six months. Extensions greater that 6 months shall require
        APEL
        Advisory Board approval. If approved, the contract extension(s) shall be
        issued
        with limited contract terms and, in most cases, escalating rents. Potential
        reasons for the extensions include:

      

      
        	 	
                ·

              	
                The
                  business typically requires more than 5 years to incubate (e.g.,
                  biotech)

              

      

      
        	 	
                ·

              	
                The
                  tenant has a newly developed product line and requires additional
                  time to
                  develop and market.

              

      

      
        	 	
                ·

              	
                The
                  maturity of manufacture/marketing requires more time due to unpredictable
                  circumstances.

              

      

      

      Extensions
        beyond 5.5 years will require APEL Board approval (informal polling by executive
        secretary). Extensions are solely at the discretion of APEL and after the
        first
        6-month extension, the contract will normally only be issued on a month-to-month
        basis. Notable progress toward graduation readiness shall be
        required.

      

      10.1
        Graduation plan

      

      
        	 	
                ·

              	
                Goals
                  shall be established in the initial
                  lease

              

      

      
        	 	
                ·

              	
                Detailed
                  plan shall be provided within the first 2 years of the lease term
                  and
                  updated semi annually thereafter

              

      

      
        	 	
                ·

              	
                Graduation
                  progress reports shall be provided every 6 months after the 2nd
                  year of initial lease

              

      

      

      
        	
                10.2

              	
                Terms
                  and criteria

              

      

      

      
        	 	
                ·

              	
                Maximum
                  term to be determined and inserted in initial lease (normal maximum
                  lease
                  shall be 5 years).

              

      

      

      
        	 	
                ·

              	
                Graduation
                  criteria:

              

      

       

      
        
           

        

        
          Page
            5 of
            6

          
            

          

        

        
           

        

      

      

      
        	 	
                ·

              	
                2
                  years profitability

              

      

      
        	 	
                ·

              	
                Sufficient
                  FTEs and/or contracted work force to sustain
                  operations

              

      

      
        	 	
                ·

              	
                Sufficient
                  sales to sustain operations

              

      

      
        	 	
                ·

              	
                Business
                  requires more than 9,500 square feet of
                  space

              

      

      
        	 	
                ·

              	
                Business
                  sold or ownership has transferred or
                  changed

              

      

      
        	 	
                ·

              	
                Reduced
                  need for incubator features and
                  services

              

      

      

      Rate
        increases may be imposed (up to 20% per 6 month period) if the incubation
        lease
        term is exceeded and the Lessee has not relocated or been provided an extension
        to remain at APEL. Other circumstances which may be considered by APEL for
        approval or denial of contract extensions:

      

      
        	 	
                ·

              	
                Failure
                  to pay rent/debts

              

      

      
        	 	
                ·

              	
                Reduced
                  need for incubator features

              

      

      
        	 	
                ·

              	
                Failure
                  to participate in annual reviews and/or failure to provide graduation
                  status information

              

      

      
        	 	
                ·

              	
                >40%
                  revenue from consulting

              

      

      
        	 	
                ·

              	
                Not
                  meeting growth objectives

              

      

      
        	 	
                ·

              	
                Waiting
                  list of potential occupants

              

      

      
        	 	
                ·

              	
                Available
                  vacant space with no waiting list

              

      

      

      
        	
                10.3

              	
                Original
                  Tenants

              

      

      

      Original
        tenants in APEL and those signing prior leases without graduation
        provisions

      shall
        be
        provided special consideration such as:

      

      
        	 	
                ·

              	
                Contract
                  lease term may be extended fro one to three years, reflecting that
                  graduation was not addressed during the first years of their
                  tenure

              

      

      
        	 	
                ·

              	
                Contract
                  renewals are to reflect current graduation
                  policy

              

      

      

      
        	
                10.4

              	
                Appeals

              

      

      

      APEL
        tenants may appeal to the APEL Advisory Board if they feel that their
        staying

      longer
        is
        justified. Board opinions shall be carefully considered. Final decisions
        for
        lease extensions shall reside with the APEL Director and Energy-Northwest
        cognizant manager.

      

      
        	
                10.5

              	
                Anchor
                  Tenants

              

      

      

      Without
        the anchor tenant, the APEL project would never have been built. The long-term
        

      lease
        and
        large rent volume from the anchor tenant were the basis for financial
        institutions approval of bonds for financing APEL. The long-term lease also
        provides financial stability that is not possible with only an entrepreneurial
        base. Anchor tenants will be required to sign longer term leases and they
        are
        not subject to the graduation provisions of this policy. However, they are
        subject to provisions in their lease which provide for termination and
        closure.

       

      
        
           

        

        
          Page
            6 of
            6Exhibit 10.1

                       Rubenstein Investor Relations, Inc.

                                                                October 25, 2005

Daniel Ollech
Chairman
B&D Food Corporation
575 Madison Avenue
New York, NY  10027

Dear Mr. Ollech:

This letter agreement (the "Agreement") will confirm our understanding whereby
B&D Food Corporation (the "Company") retains Rubenstein Investor Relations, Inc.
("RIR") as its investor relations consultant with respect to matters concerning
the financial and investment communities.

1.    Term.

      A. The Company retains RIR as its investor relations consultant on a month
to month basis beginning on November 1, 2005.

      B. The term of this Agreement will automatically renew on a monthly basis,
unless either the Company or RIR terminates this Agreement in writing upon 30
days notice to the other party.

2.    Services. As part of the investor relations services that RIR will provide
      to the Company, RIR will:

      (a) Provide the Company with investor relations counsel and guidance to
enhance the Company's visibility in the financial markets; (b) arrange
appointments for the Company with asset managers, broker dealers and analysts;
and (c) advise the Company on communications strategies as it relates to its
board of directors and stockholders.

3.    Fees and Expenses.

      A. The Company will pay RIR a monthly fee of $7,500 for RIR's investor
relations services. RIR will bill the Company for all fees and expenses every
month. The Company will pay each invoice within 15 days after receiving it. In
addition to the monthly fee, the Company will deliver a compensation package in
the form of a warrant evidencing the right to purchase during a five-year period
from the date of execution of this agreement, 200,000 shares of its common stock
at an exercise price equivalent to the closing price of the common stock at the
date of the execution of this agreement (the "Warrant"). The Warrant will
contain so called "Cashless Exercise" provisions, and the standard piggyback
registration rights and mechanical anti-dilution protection.
<PAGE>

      B. The Company will pay all of RIR's out-of-pocket expenses. These
out-of-pocket expenses may include postage, copier charges, telephone,
messengers, photography, printing, and other similar expense. RIR will not
charge a markup, surcharge, handling or administrative fee on such expenses.

      C. RIR will obtain prior approval from the Company for any individual
out-of-pocket expense that is greater than $150.00. If RIR's total out-of-pocket
expenses are greater than $100.00 per month, then RIR will provide the Company
with copies of invoices and other receipts to support the amount of
out-of-pocket expenses, if the Company requests RIR to do so.

      D. The Company understands that, depending on the nature of the expenses
that RIR incurs on the Company's behalf, RIR may not receive the bills from
vendors who provide certain services and/or products until after this Agreement
has terminated. In such case, the Company will reimburse RIR for such expenses
promptly after RIR notifies the Company of the amount due.

      E. All invoices for out of pocket expenses and services rendered shall be
binding upon the Company and shall not be subject to objection for any reason
unless such objection is made in writing, states the basis for such objection in
detail and is delivered to RIR in connection with fees - within 30 days of the
completion of the relevant billing cycle or in connection with expenses within
30 days of the related invoice for such expenses.

      F. Upon termination of this Agreement, RIR shall deliver an invoice for
any outstanding amounts due, including fees and expenses. The amount of such
invoice shall be due and payable within thirty (30) days of such invoice. The
Company will be charged a late fee of 1.0% per month of the unpaid balance due
on such invoice until paid.

      G. In addition to the fees and expenses payable by the Company to RIR
pursuant to the tents of this Agreement, the Company hereby agrees to pay to RIR
all costs and expenses, including all reasonable attorneys' fees and
disbursements, incurred by RIR in collection of its fees and expenses payable
pursuant to the terms of this Agreement.

4.    Indemnification.

      A. The Company understands that RIR cannot undertake to verify the
accuracy of information that the Company (or someone on behalf of the Company)
provides to RIR, or information included in material that has been prepared by
RIR and approved by the Company.

      B. The Company agrees to indemnify and hold harmless RIR, and its
officers, directors, employees, shareholders, representatives and agents from
and against any and all losses, liabilities, claims, damages, deficiencies,
costs and expenses (including reasonable attorney's fees, disbursements and
other charges) based upon or arising out of the performance of any services
provided under this Agreement, or any materials, releases, reports or
information that the Company (or someone on the Company's behalf) supplies to
RIR or prepared by RIR, except to the extent that such losses are due to the
gross negligence or willful misconduct of RIR. The Company's agreement to
indemnify will survive the expiration or termination of this Agreement.
<PAGE>

      C. The Company agrees that all information that it or its employees,
officers, directors or affiliates (or any person on the Company's behalf)
provides to RIR for dissemination will comply with any and all federal and state
securities laws and the rules and regulations of any applicable self regulating
securities association and securities exchange. All such information will be
accurate and will fairly represent the Company's situation. All such information
will not omit any information which would make the information that was provided
materially misleading.

5.    Non-Solicitation. The Company agrees that during the term of this
      Agreement and for two years after this Agreement terminates, neither the
      Company nor any of its affiliates will directly or indirectly, (a) solicit
      the employment of any employee of RIR or any of its affiliates, (b)
      introduce any employee of RIR or any of its affiliates to any other
      potential employer that wishes to employ any employee of RIR or any of its
      affiliates, or (c) otherwise interfere with the employment relationship
      between RIR or any of its affiliates and any of their employees.

6.    Independent Contractor. RIR and the Company understand and agree that RIR
      is an independent contractor and is not authorized to obligate or commit
      the Company in any manner.

7.    Confidentiality. RIR agrees to use reasonable commercial efforts to
      preserve the confidentiality of any proprietary or confidential
      information disclosed to RIR by the Company, Such obligation shall
      terminate upon the earlier to occur of: (i) RIR is required to disclose
      such information to a third party pursuant to any applicable law or the
      order of any court or tribunal of competent jurisdiction, provided that
      RIR provides prior written notice to the Company so as to enable the
      Company to seek a protective order or such other protection as Company is
      lawfully entitled; (ii) such information is in the public domain by
      publication or otherwise, other than by breach of this Agreement by RIR or
      (iii) the third anniversary of the termination of this Agreement.

8.    Gift Policy. RIR's employees may not accept any type of gift or gratuity
      (including stock or rights to acquire stock), regardless of value, from
      any of RIR's clients, except for (i) unsolicited promotional materials of
      nominal value such as pens and calendars and (ii) unsolicited consumable
      items such as cakes and cookies that a client may choose to send to RIR
      during the holidays.

9.    Entire Agreement. This Agreement constitutes the entire agreement between
      RIR and the Company with respect to investor relations services. This
      Agreement supersedes all prior agreements or understandings between RIR
      and the Company.

10.   Amendments. RIR and the Company may amend, supersede or modify this
      Agreement only in writing signed by each of RIR and the Company.
<PAGE>

11.   Governing Law. This Agreement will be governed and construed in accordance
      with the laws of the State of New York without regard to any principles of
      conflicts of laws.

12.   Counterparts. RIR and the Company may execute this Agreement in two
      counterparts, each of which will be considered an original but all of
      which together will constitute one and the same instrument.

      If this Agreement correctly describes our understanding, please sign the
enclosed copy of this letter where indicated. Please return the signed Agreement
to us together with the initial monthly fee of $7,500. We look forward to a long
and mutually productive relationship.

                                Sincerely yours,
                                RUBENSTEIN INVESTOR RELATIONS, INC.

                                By: /s/
                                    ---------------------
                                    Name:  Richard M. Rubenstein
                                    Title:  President

Agreed and Accepted as of the date first written above:
B&D FOOD CORPORATION

By:              /s/
   --------------------------------
     Name:  Daniel Ollech
     Title:  Chairman

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