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              Energy
                Northwest Contract #X-40403 

            	
              Revision
                No: 11

            
	
              Tenant
                Lease Agreement #014 

            	
              Effective
                Date: May 1, 2007

            

    

    

    APPLIED
      PROCESS ENGINEERING LABORATORY

    APEL
      - TENANT LEASE AGREEMENT

        

    
      
        	ISORAY MEDICAL,
                INC.	
                N

              
	(Tenant Name)	
                (Tenant
                  Class)

                (see
                  paragraph
                  5A)

              

      

    

      

    THIS
      LEASE, made and entered into this 2nd
      day of
      May 2007, by and between the
      Energy Northwest,
      a
      municipal corporation and joint operating agency of the State of Washington,
      hereinafter called "Lessor" and IsoRay
      Medical, Inc., hereinafter
      called the "Lessee".

    

    WITNESS:

     

    WHEREAS,
      the Lessor owns a multipurpose building in the City of Richland, Benton County,
      Washington, referred to hereinafter as the Applied Process Engineering
      Laboratory ("APEL") which is to provide high quality laboratory and validation
      testing and development facilities and associated offices for research and
      development, testing of new processes and products, including but not limited
      to
      environmental restoration, waste treatment and energy conservation;
      and

    

    WHEREAS,
      the express purpose of APEL is to foster the deployment of new technology based
      businesses, product lines and jobs for the Tri-Cities, Washington area;
      and

     

    WHEREAS,
      Lessee is desirous of renting space in APEL, and Lessee is willing to lease
      such
      space upon the terms and conditions and for the purposes hereinafter set forth;
      and

    

    WHEREAS,
      Lessor finds that the Lessee’s intended activities within APEL are consistent
      with the APEL charter and mission; and

    

    WHEREAS,
      Lessee has represented to Lessor an intent to form a business or venture in
      the
      local area should the research and/or development activities undertaken in
      APEL
      prove successful;

    

    NOW,
      THEREFORE, it is agreed:

    

    ARTICLE
      1 - DESCRIPTION OF PREMISES 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

      
        	
                Energy
                  Northwest Contract #X-40403 

              	
                Revision
                  No: 11

              
	
                Tenant
                  Lease Agreement #014 

              	
                Effective
                  Date: May 1, 2007

              

      

       

    

    The
      Lessor, for and in consideration of the rental payments provided herein and
      the
      covenants and conditions herein contained, agrees to lease to the Lessee
      nineteen thousand three hundred twenty eight (19,328) Rentable Square Feet
      of
      particular space located
      in APEL which includes the Annex, Breezeway, APEL offices, labs, entrepreneur,
      high bay, Exterior HVAC and Exterior Emergency Generator {hereinafter called
      the
Premises},
      and as further described in Exhibit A, “Description of Premises”, and by this
      reference made a part hereof. All parking areas provided for Lessee's use are
      included in and subject to the terms and conditions of this Lease.

    

    ARTICLE
      2 - TERM 

    

    A. The
      term
      of this Lease shall be for three (3) (Years) beginning on May
      1,
      2007 and
      expiring on
      April
      30, 2010.

    

    B. Occupancy
      shall be contingent upon Lessee obtaining and providing all applicable
      procedures, permits and licenses. The effective date, i.e. beneficial occupancy,
      shall be the date construction commences. Lessee shall not be permitted to
      perform any radiological production work until all applicable permits and
      licenses are approved by the appropriate agencies and on file at APEL.

    

    C. If
      the
      rental period from the beginning date of this Lease to the beginning of the
      next
      calendar month is less that a full calendar month, the rental payment shall
      be
      prorated to cover the fractional part of the month from the beginning date
      through the last day of that calendar month.

    

    D. The
      term
      of this lease shall be subject to the conditions established in the APEL
      Graduation Policy 10.0, Exhibit D.

    

    ARTICLE
      3 - OPTION TO EXTEND LEASE

    

    The
      Lessee shall have the option to extend this Lease for two additional three
      (3)
      year terms, by giving the Lessor notice of its intention to do so at least
      ninety (90) days prior to the expiration of the lease, provided, however, that
      Lessee is not in default hereunder at the time of such notice or on the date
      of
      expiration of the lease by its terms. Such extended term shall be upon the
      terms
      and conditions as provided herein unless amended in a writing executed by the
      authorized representatives of each Party. If the Parties cannot agree upon
      the
      terms of any extended period, then the Lease shall terminate, in accordance
      with
      article 28, entitled “Termination”.

    

    ARTICLE
      4 - RENT 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

      
        	
                Energy
                  Northwest Contract #X-40403 

              	
                Revision
                  No: 11

              
	
                Tenant
                  Lease Agreement #014 

              	
                Effective
                  Date: May 1, 2007

              

      

       

    

    A. MONTHLY
      RENT PAYMENTS - The Lessee covenants and agrees to pay Lessor as rental for
      said
      Premises a monthly Rent of twenty six thousand six hundred ninety two dollars
      and eighty-five cents ($26,692.85) payable in advance on the first day of each
      month during the term of this Lease, beginning on the Beneficial Occupancy
      date.
      The Rent for successive terms of this Lease shall be mutually agreed
      upon by the Parties prior to the commencement of the new term. If the Parties
      cannot agree upon such new Rent, then the Lease shall terminate, in accordance
      with article 28, entitled “Termination”.

    

    
      	
              Rented
                Space Type

            	 	
              Square

            	 	
              Monthly

            	 
	
               

            	 	
              Feet

            	 	
              Rate

            	 
	
              Lab
                & Entrepreneur Space

            	 	 	
              3,564

            	 	
              $

            	
              4,836.34

            	 
	
              High
                Bay, Annex, Breezeway & Exterior

            	 	 	
              15,340

            	 	
              $

            	
              20,859.50

            	 
	
              Offices

            	 	 	
              424

            	 	
              $

            	
              997.01

            	 
	
              Total
                Rent

            	 	 	
              19,328

            	 	
              $

            	
              26,692.85

            	 
	
              Total
                Janitorial 

            	 	 	
              3,988

            	 	
              $

            	
              350.94

            	 
	
              Grand
                Total Rent & Janitorial

            	 	 	
            	 	
              $

            	
              27,043.79

            	 

    

    

    The
      Rental Rates set forth above shall increase annually based on the Beneficial
      Occupancy date to an amount equal to the prior year’s rate multiplied by the
      escalation factor from The Consumers Price Index, West Urban Wage Earners and
      Clerical Workers CPI-W, All Items

    

    Interest
      shall accrue on all unpaid Rent more than thirty (30) days past due at a rate
      of
      1 1/2 % per month until such Rent, including accrued interest, is paid in
      full.

    

    B. FIRST
      AND
      LAST MONTH’S RENT - Concurrently with the Lessee’s execution of this Lease, the
      Lessee shall deliver to the Lessor the sum of fifty three thousand three hundred
      eighty five dollars and seventy cents ($53,385.70) to be applied to the first
      and last month’s Rent, and for performance
      by Lessee of Lessee’s obligations hereunder, notwithstanding any other
      obligations of the Lessee as defined in this Lease. This amount shall not bear
      interest. Any balance shall be returned to Lessee at the expiration or sooner
      termination of this Lease, after satisfaction of any and all of Lessee’s
      obligations under this Lease.      

    

    ARTICLE
      5 - USE OF PREMISES

    

    
      	
            	A.	
              The
                following definitions apply to the six classes of APEL Lessees. The
                classification of this Lease is designated on the cover page
                hereto:

            

    

    

    
      	
              Class
                G
                -
                

            	
                  Lessee’s
                allowable use of Premises is limited to general research, development
                and
                testing not routinely involving the use of chemicals or the handling
                or
                generation of chemical or dangerous wastes or causing environmental
                hazards. Certain materials that are incidental to Lessees activities
                but
                have specific handling and disposal requirements (such as lubricants,
                hydraulic fluids and solvents) will be identified by the parties
                and
                subjected to applicable APEL policies, protocols and
                procedures.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

      
        	
                Energy
                  Northwest Contract #X-40403 

              	
                Revision
                  No: 11

              
	
                Tenant
                  Lease Agreement #014 

              	
                Effective
                  Date: May 1, 2007

              

      

    

     

    
      	
              Class
                W
                -
                

            	
                  Lessee’s
                allowable use of Premises includes Class G activities, plus the routine
                handling and disposal of limited volumes of chemicals and hazardous
                materials in solid, liquid or gaseous forms. Unless otherwise noted
                in
                this contract, the volumes will be five (5) gallons or less per
                container.

            

    

    

    
      	
              Class
                W1-

            	
                  Lessee’s
                allowable use of Premises includes Class G activities, plus the routine
                handling and disposal of moderate volumes of chemicals and hazardous
                materials in solid, liquid, or gaseous forms in containers up to
                55
                gallons in volume.

            

    

    

    
      	
              Class
                W2-
                

            	
                  Lessee’s
                allowable use of Premises includes Class W1 activities, plus the
                handling
                and disposal of chemicals or dangerous wastes in volumes greater
                than 55
                gallons, with approval of APEL
                management.

            

    

     

    
      	
              Class
                N
                - 

            	
                  Lessee’s
                allowable use of Premises includes Class W activities, plus the handling
                and disposal of radionuclide materials which are low risk with respect
                to
                safety, the environment, contamination cleanup costs or potential
                impact
                to other
                building occupant activities. Considerations for low risk include
                very
                short half life (less than 30 days), commercial sealed sources, small
                radionuclide quantities, product dispersibility, and risks associated
                with
                related activities in the same or adjacent
                spaces.

            

    

    

    
      	
              Class
                N1 - 

            	
                  Lessee’s
                allowable use of Premises includes all of the above classes and inclusive
                of the Class W activities, the handling and disposal of radionuclide
                materials which are of moderate risk with respect to safety, the
                environment, contamination cleanup costs or potential impact to other
                building occupant activities. Considerations for moderate risk include
                moderate half life, potentially dispersible material forms, moderate
                quantities, etc. 

            

    

    

    B.  Lessee
      agrees that the Premises are to be used for approved purposes only, and for
      no
      other purpose without the prior written consent of the Lessor. Lessee shall
      not
      allow use of the Premises in a manner inconsistent with those approved purposes.
      Lessee acknowledges that engaging in activities upon the Premises which are
      in
      any way inconsistent with approved purposes, or in any manner increase Lessor’s
      insurance premiums, or which are determined to be illegal, shall constitute
      breach of this Lease. Lessee further agrees to notify Lessor immediately upon
      identification of any condition or event that is inconsistent with the following
      approved purposes:

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

      
        	
                Energy
                  Northwest Contract #X-40403 

              	
                Revision
                  No: 11

              
	
                Tenant
                  Lease Agreement #014 

              	
                Effective
                  Date: May 1, 2007

              

      

       

    

    Approved
      Purposes: Operate radioisotope production for the manufacture of brachytherapy
      seeds for the treatment of cancer.

    

    Lessee
      shall comply with all local, state and federal laws, rules, orders, regulations
      or requirements relating to Lessee’s use and occupancy of the Premises, or any
      aspect of Lessee’s performance of its obligations under this Lease. Lessee shall
      indemnify and hold the Lessor harmless from all liability resulting from any
      violation thereof by the Lessee or any of its agents, officers, employees,
      subcontractors or invitees.

    

    C.  Exhibit
      B
      sets forth by reference APEL procedures and related documents for which Lessee
      must be in compliance while conducting activities on the Premises. Lessee
      acknowledges that all documents referenced in Exhibit B have been
      provided, and the limitations and responsibilities of the Lessee with respect
      to
      those documents are understood. Lessee commits to Lessor that all activities
      of
      the Lessee,
      its
      agents, officers,
      employees, subcontractors, licensees, and invitees
      conducted on the Premises shall be in full compliance with the requirements
      set
      forth in this Lease, including those documents applicable to Lessee’s activities
      as identified in Exhibit B, and to additions and updates to those documents
      that
      are provided in writing to the Lessee by the Lessor from time to time during
      the
      term of this Lease. Lessee further commits that all training and qualification
      requirements identified by the APEL Facility Director, as applicable, will
      be in
      place and maintained current during the conduct of approved activities per
      the
      terms of this Lease.

    

    D.  Lessee
      agrees to comply with the Tenant Operating Agreement, Exhibit C, and to post
      said agreement in a prominent place upon the Premises and ensure that all Lessee
      employees, subcontractors and invitees are familiar with the terms of that
      agreement.

    

    E.   Lessee
      agrees to reasonably cooperate with other APEL tenants and APEL management
      in coordinating test schedules, pooling inventories and sharing inventory
      information in order to comply with permit related limits and in order to reduce
      the amount of space required to be activated under the various
      permits.

    

    F.  Lessee
      shall be responsible to pay any fines or penalties levied by any entity with
      jurisdictional authority over APEL for which Lessee is determined to be
      responsible. If the Parties are unable to agree on responsibility, the Parties
      will proceed to resolve their disagreement per Article 26,
“Disputes”.

    

    G.  Lessee
      shall ensure that the following prohibited articles are not brought onto the
      APEL property and/or into the facility: firearms, non-prescriptive controlled
      drugs, alcoholic beverages.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

      
        	
                Energy
                  Northwest Contract #X-40403 

              	
                Revision
                  No: 11

              
	
                Tenant
                  Lease Agreement #014 

              	
                Effective
                  Date: May 1, 2007

              

      

       

    

    H.  Lessee
      shall provide copies of all IsoRay’s applicable production, radiological, safety
      and emergency procedures, licenses and permits to the Applied Process
      Engineering Laboratory. IsoRay shall provide access to all other procedures
      as
      requested.

    

    I. 
       IsoRay
      shall obtain its own Air Permit from the Benton Clean Air Authority for the
      7,900 sf. leased in the high bay and 6,000 sf. in the Annex and shall provide
      a
      copy of the permit.

    

    J. 
        IsoRay
      will obtain a Radioactive Materials License with the Department of Health and
      provide a copy of the licenses to APEL.

    

    K.  Lessor
      shall require Lessee at Lessee’s expense, to install at a minimum three (3) TLDs
      attached to IsoRay’s perimeter walls in the high bay. Lessee shall report all
      occurrences and events that are defined as reportable to the Department of
      Health under IsoRay’s Radioactive Material License to the Lessor as they occur
      and any other radiological occurrences that may impact building
      activities.

    

    L.  The
      Lessee shall not discharge any chemicals, dangerous or radiological waste or
      production wastewater, in any concentration, to the sanitary sewer or process
      wastewater system within APEL or the Annex facilities.

     

    Failure
      to comply with the terms of this Article 5 shall be grounds for default as
      set
      forth in Article 27, “Default”. See
      also
      Article 23, “Inspection of Premises”, which defines Lessor’s right to inspect
      the Premises for compliance with this Article 5.

    

    ARTICLE
      6 - COMMON AREAS

    

    The
      Lessee shall have nonexclusive use of all areas of APEL designated by the Lessor
      as common areas for the use generally of the tenants of APEL. The Lessor shall
      maintain the common areas in good condition.

    

    ARTICLE
      7 - ALTERATIONS TO AND RESTORATION OF PREMISES 

    

    Prior
      to
      the commencement of the initial Lease term, the Lessor shall complete any
      alterations to the Premises. Such premises are generally identified in Exhibit
      A. Upon early termination or expiration of any Lease term, the Lessor, at its
      option, may require that the Premises, including alterations by Lessor, be
      restored, at the Lessee’s expense, to the condition of the Premises at the time
      of commencement of the respective Lease term (including appropriate cleaning
      and
      disposal of any chemicals, wastes, radiological materials, residues and
      equipment), absent normal wear and tear by the Lessee. 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

      
        	
                Energy
                  Northwest Contract #X-40403 

              	
                Revision
                  No: 11

              
	
                Tenant
                  Lease Agreement #014 

              	
                Effective
                  Date: May 1, 2007

              

      

       

    

    Lessor
      shall require the Lessee at the Lessee’s expense to decontaminate all lessee’s
      leased premises. During the decontamination process Lessee shall be required
      to
      continue to pay rent for the contaminated space.

    

    In
      the
      event the Lessee’s leased area or any portion thereof, or any adjacent area of
      the APEL facility cannot be decontaminated, the Lessee shall replace or pay
      fair
      market value for the leased premises based on a certified appraisal. Such costs
      shall include all disposal costs incurred by the Lessor.

    

    ARTICLE
      8 - IMPROVEMENTS TO AND RESTORATION OF PREMISES BY LESSEE

    

    A.    After
      the
      commencement of any Lease term, and at Lessee's own expense, the Lessee may
      make
      additions or improvements to the Premises after having obtained Lessor's design
      review. Lessor shall charge Lessee for Energy Northwest engineering

    time
      for
      design review. The design and installation and operation of such improvements
      shall be in compliance with all applicable codes and standards and APEL
      environmental commitments. Upon early termination or expiration of the
      respective Lease term, all such 

    improvements
      and additions excluding supplies, equipment and personal property shall become
      the property of Lessor; provided that upon termination or expiration of the
      respective Lease term, the Lessor, at its option, may require, at Lessee's
      expense, that all such additions and improvements be removed and the Premises
      restored to its condition at the time of commencement of the respective Lease
      term. Prior to the construction of any additions or improvements, Lessee shall,
      at the reasonable request of the Lessor, obtain payment and performance bonds
      as
      required by law to assure payment to all contractors, subcontractors, laborers
      and material suppliers. 

    

    B.    
Lessee
      may, during any Lease term, and subject to Lessor’s prior written approval, such
      approval not to be unreasonably withheld, install in the Premises machinery,
      equipment and fixtures as Lessee deems necessary for its use of the Premises,
      provided machinery, equipment, or fixtures do not materially damage the
      Premises, are not hazardous to other tenants or users of the property upon
      which
      the Premises are situated, are not in conflict with Lessor's permits or any
      other applicable operating, code or regulatory requirements, and do not unduly
      interfere with any other tenant's use and enjoyment of their premises. During
      the respective Lease term, the machinery, equipment, and fixtures shall remain
      the personal property of the Lessee. Upon early termination or expiration of
      the
      respective Lease term, if there is no default by the Lessee in the Lease, the
      Lessee shall have the right to remove all machinery, equipment and fixtures
      from
      the Premises regardless of whether this personal property is attached to the
      Premises by piping, wiring, bolts or otherwise. After the removal of the
      machinery, equipment or fixtures from the leased Premises, the Lessee shall
      restore, at its own expense, the Premises to its condition at the commencement
      of the respective Lease term, absent normal wear and tear by the
      Lessee.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

      
        	
                Energy
                  Northwest Contract #X-40403 

              	
                Revision
                  No: 11

              
	
                Tenant
                  Lease Agreement #014 

              	
                Effective
                  Date: May 1, 2007

              

      

       

    

    Lessor
      shall charge Lessee for all engineering reviews including, but not limited
      to,
      reviews related to project oversight, building impairments, outages and related
      services, building codes, and updates to building “as-built” drawings, and a 15%
      handling fee for project administrative costs.

    

    ARTICLE
      9 - ACCEPTANCE OF PREMISES

    

    The
      taking of possession of the Premises by the Lessee shall constitute an
      acknowledgment by Lessee that the Premises are in good and habitable condition
      and as represented by Lessor.

    

    ARTICLE
      10 - MAINTENANCE AND REPAIR

    

    
      	A.	 	
              All
                matters regarding maintenance and repair of the Premises (and Common
                 areas
                if applicable) shall be referred
                to:

            

    

    

    
      	 	Name:	Construction & Maintenance
              Services
	 	Office Address: 	P. O. Box 968
	 	 	Richland, WA 99352
	 	24 Hour Number:	377-6063 

    

        

    
      	B.	 	
              The
                Lessor shall provide and pay for maintenance, repair and replacement
                of
                the  Premises,
                including the building interior, exterior, grounds, and all equipment,
                 fixtures,
                and appurtenances furnished by the Lessor under this Lease in order
                to
                 keep
                the same in good repair and habitable condition, except for damage
                resulting  from
                willful abuse or negligence of the Lessee. The Lessor shall have
                the right
                to  enter
                upon the Premises at reasonable times in order to inspect the same
                and to
                 perform
                such maintenance and repair, as well as replacement, but this right
                shall
                 be
                exercised in a manner that does not unreasonably interfere with Lessee’s
                use  of
                the Premises. Lessee shall provide written procedures for maintenance
                Personnel entering and exiting radiological
                areas.

            

    

     

    
      	C.	 	
              Maintenance,
                repair, and replacement services by the Lessor, in accordance with
                 Paragraph
                B, include the following:

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

      
        	
                Energy
                  Northwest Contract #X-40403 

              	
                Revision
                  No: 11

              
	
                Tenant
                  Lease Agreement #014 

              	
                Effective
                  Date: May 1, 2007

              

      

       

    

    
      	 	
              1.

            	
              Snow
                removal and ice control in parking areas and
                sidewalks;

            

    

    

    
      	 	
              2.

            	
              Painting
                of interior and exterior of the building as required for good maintenance
                practice;

            

    

    

    
      	 	
              3.

            	
              Scheduled
                routine preventive maintenance of existing building mechanical, electrical
                and heating, ventilation, and air conditioning (HVAC) systems to
                minimize
                breakdown;

            

    

    

    
      	 	
              4.

            	
              Repair
                or replacement of existing building mechanical, electrical and HVAC
                systems caused by wear and tear during ordinary use of these systems.
                This
                includes required relamping of interior and exterior light
                fixtures;

            

    

    

    
      	 	
              5.

            	
              Grounds
                maintenance including complete grass, tree, and shrub care and clean-up
                plus maintenance and repair of automatic underground sprinkler
                system;

            

    

    

    
      	 	
              6.

            	
              Pest
                control on interior (sprays will not be used on interiors) and exterior
                of
                building to control ants, insects, rodents, or other common pests
                to
                maintain the Premises in habitable
                condition;

            

    

    

    
      	 	
              7.

            	
              Replacement/repair
                of exterior and interior worn or failed structural components of
                the
                building.

            

    

    

    
      	
            	8.	
              Replacement
                of carpet and drapes and/or blinds as needed. Replacements should
                be color
                coordinated with the existing draperies and/or blinds and floor
                coverings.

            

    

    

    
      	
            	9.	
              Perform
                or have performed all necessary inspections, periodic testing, and
                maintenance of elevators, fire extinguishers, fire alarm, and fire
                preventive equipment and systems in accordance with applicable laws,
                regulations and warranties. 

            

    

     

    
      	 	
              10.

            	
              Planned
                electrical outages, of any duration, affecting the Premises, will
                not be
                initiated by the Lessor without notification of the Lessee at least
                48
                hours in advance of such outage.

            

    

    

    
      	 	
              11.

            	
              In
                the event a fire suppression or detection system is out of service,
                the
                Lessor shall notify the Lessee and provide a manned fire watch during
                non-working hours. The fire watch shall be performed on a minimum
                frequency of every two (2) hours.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

      
        	
                Energy
                  Northwest Contract #X-40403 

              	
                Revision
                  No: 11

              
	
                Tenant
                  Lease Agreement #014 

              	
                Effective
                  Date: May 1, 2007

              

      

    

     

    
      	D.	 	
              In
                the event of emergencies or unscheduled utility service outages,
                the
                Lessee may perform such maintenance and/or repairs as are necessary
                to
                ensure continuity
                of critical operations or protection of equipment. Expenses incurred
                by
                the Lessee in such events shall be used as a basis for determining
                the
                amount the Lessor shall reimburse the Lessee for such expenses or
                for
                determining an equitable reduction in the
                rent.

            

    

     

    ARTICLE
      11 - JANITORIAL SERVICES

    

    
      	A.	 	
              The
                Lessor shall provide and pay for all janitorial services for common
                use
                areas,  and
                shall keep those portions of the Premises in good and habitable condition.
                 Janitorial
                services shall be performed during normal working
                hours.

            

    

    

    
      
        	B. 	 	
                Janitorial
                  services shall not be performed for the high bay or Annex. Lessee
                  shall
                  Provide
                  their own janitorial services in their leased
                  areas.

              

        	    	 	 

        	   	 	During the conduct of janitorial
                duties,
                Lessor shall not disturb or attempt to clean bench tops, furniture,
                sinks,
                hoods, gas bottles or any laboratory fixtures or equipment located
                within
                laboratories. Lessor shall also report any suspected chemical spills
                to
                Lessee immediately upon identification and shall not attempt cleanup
                without prior approval and direction from
                Lessee.

      

    

    

    ARTICLE
      12 - UTILITY CHARGES

    

    The
      Lessor may pay utility charges, including but not limited to electricity, sewer
      and water, provided that each tenant has similar utility demands. Lessee shall
      pay any utility charges that are reasonably demonstrated by Lessor to be in
      excess of average tenant demands. Lessee shall provide, to the extent practical
      and at its sole expense, for separate utility metering of loads that can be
      reasonably expected to significantly exceed average
      tenant demands, including, but not limited to, all associated operations of
      the
      Lessee’s hot cell located in the APEL high bay. Lessor shall have the right to
      charge Lessee for all or part of prorated utility costs for the rest of their
      leased space. It is not expected that Lessor will do this unless utility rates
      escalate substantially faster than the consumer price index used for rent
      escalation. See Article 4.

    

    The
      Lessee shall pay for all utilities for the Annex. 

    

    ARTICLE
      13 - TAXES AND ASSESSMENTS

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

      

        
          	
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                    Lease Agreement #014 

                	
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    The
      Lessee shall pay, and hold the Lessor harmless from, all state, federal and
      local taxes and assessments levied against the Lessee's property, the
      improvements thereon, the Lease interest, or any business activities performed
      by Lessee in APEL during the term of this Lease. Lessee may, in good faith,
      contest the validity or the amount of any tax or assessment which it is required
      to pay hereunder, and while such contest is continuing in good faith, the Lessee
      may, to the extent permitted by law, refuse to pay such tax or assessment.
      

    

    ARTICLE
      14 - INDEMNIFICATION   

    

    
      	A.	 	
              Without
                limiting the other rights and remedies of Lessor, Lessee, to the
                fullest
                extent permitted by law, specifically
                and expressly agrees to indemnify, defend, and hold harmless Lessor
                and
                its officers, directors, employees, and agents (hereinafter collectively
                "Indemnitees"), against and from any and all claims, demands, suits,
                losses, costs, and damages of every kind and description to persons
                or
                property, whether direct or indirect or consequential in tort or
                contract
                or otherwise, including
                actual or potential environmental contamination, whether by radiological,
                toxic or hazardous materials,
                (including reasonable attorneys' fees and/or litigation expenses),
                brought
                or made against or incurred by any of the Indemnitees resulting from
                or
                arising out of Lessee’s breach of or default upon the terms of this lease,
                any negligence or willful acts, or failure to act, of Lessee its
                employees, agents, representatives, or subcontractors of any tier,
                their
                employees, agents, or representatives in the performance or nonperformance
                of Lessee's obligations under this Lease or in any way related to
                this
                Lease. 

            

    

     

    
      	B.	 	
              Lessor
                agrees to indemnify, defend and hold harmless Lessee from and against
                any
                claims,
                demands, suits, losses, costs, and damages to persons or property
                to the
                extent caused by the gross negligence or willful misconduct of Lessor
                or
                it officers directors, employees and agents. The parties agree that
                Lessor
                shall not be liable to Lessee for any consequential, indirect or
                special
                damages whether in contract, tort or otherwise.

            

    

     

    ARTICLE
      15 - LIENS

    

    The
      Lessee shall keep the Premises and the property in which the Premises are
      situated, free from any liens or encumbrances arising out of any work performed,
      materials furnished or obligations incurred by Lessee. If any such lien is
      filed
      against APEL, the Lessee's Lease interest, the Lessor or the Lessor’s property,
      the Lessee shall cause the same to be discharged within twenty (20) days after
      the date of filing the same.

    

    ARTICLE
      16 - LESSEE’S LIABILITY INSURANCE  

    

    A.    The
      Lessee shall, at Lessee's expense, maintain commercial general liability
      insurance with an insurer acceptable to the Lessor, insuring against any and
      all
      claims for injury to or death of persons and loss of or damage to property
      occurring upon, in or about
      the
      Premises arising from an act or omission of the Lessee or any of its agents,
      contractors, representatives, licensees or invitees. Such insurance shall have
      liability limits appropriate to Lessee’s Approved Purposes as set forth in
      Article 5, “Use of Premises”, but not less than one million dollars
      ($1,000,000.00) [Class N
      =
      $1 million] combined
      single limit for bodily injury and property damage per occurrence and in the
      aggregate.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

      
        	
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                  Lease Agreement #014 

              	
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    B.    The
      Lessee shall, at Lessee’s expense, maintain environmental hazards insurance with
      an insurer acceptable to the Lessor, insuring against any and all claims for
      any
      environmental impairment caused by Lessee’s actions within APEL, including third
      party bodily injury, property damage and cleanup costs arising from a pollution
      occurrence. Such insurance shall have liability limits appropriate to Lessee’s
      Approved Purposes as set forth in Article 5, “Use of Premises”, but not less
      than one million dollars ($1,000,000.00) [Class N, = $1 million] combined single
      limit per occurrence and in the aggregate. If the policy is not a “claims made”
policy, a minimum of two years discovery and reporting of claims period is
      required.

    

    Lessee
      or
      Lessee’s insurer shall have the option to perform any required remediation, or
      to pay for or reimburse the costs of any required remediation to the
      satisfaction of the Lessor, Lessor’s insurer and the responsible regulatory
      authorities. 

    

    C.    All
      insurance required per paragraph A and B above: 

    

    
      	
            	1.	
              shall
                be primary insurance as respects the Lessor for any and all covered
                Lessee
                liabilities arising from an act or omission of the Lessee or any
                of its
                agents, contractors, representatives, licensees or invitees. Any
                such
                insurance maintained by the Lessor shall be excess of Lessee’s insurance
                and shall not contribute to it. The liability of Lessee and any of
                its
                insures shall
                not be reduced, offset, or otherwise affected by the existence and/or
                collectability
                of any insurance maintained by Lessor;
                and

            

    

    

    
      	
            	2.	
              shall
                contain a provision whereby the carrier agrees not to cancel or
                significantly
                modify the insurance without thirty (30) days prior written notice
                to
                the Lessor; and

            

    

    

    
      	
            	3.	
              shall
                name the Lessor as additional insured;
                and

            

    

    

    
      	
            	4.	
              shall
                not contain a severability of interests
                exclusion.

            

    

    

    The
      Parties understand that they will be bound by the comparative fault laws of
      the
      State of Washington.

    

    D.    On
      or
      before taking possession of the Premises pursuant to this Lease, the Lessee
      shall provide the Lessor with a copy of the insurance policies and certificates
      evidencing
      the aforesaid insurance coverage required per paragraphs A and B above, with
      underwriters acceptable to the Lessor, such acceptance by Lessor not to be
      unreasonably withheld. Renewal certificates and any changes in terms or
      underwriter shall be furnished to the Lessor for approval at least thirty (30)
      days prior to the expiration date of each policy for which a certificate was
      theretofore furnished.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

      
        	
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                  Northwest Contract #X-40403 

              	
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                  Lease Agreement #014 

              	
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                  Date: May 1, 2007

              

      

       

    

    ARTICLE
      17 - LESSEE'S FIRE INSURANCE 

    

    The
      Parties understand that Lessee assumes all responsibility for loss to its
      personal property and Lease improvements and alterations on the Premises, and
      Lessee’s loss of income due to fire on the Premises. Lessor is in no way
      responsible for insuring,
      replacing or repairing Lessee’s personal property, Lease improvements and
      alterations, or loss of income, except for loss to Lessee’s personal property as
      a direct result of Lessor’s negligent acts, errors or omissions.

    

    ARTICLE
      18 - LESSOR'S FIRE INSURANCE

    

    The
      Lessor shall, at Lessor's expense, maintain for APEL a Commercial Property
      Policy including a Causes of Loss - Special Form, in an amount of the
      replacement value of the facility and permanently installed fixtures and
      equipment. All proceeds of any such 

    insurance
      shall be payable to Lessor and shall be applied to the restoration of the
      Premises. Any proceeds of such insurance remaining after such restoration shall
      belong to the Lessor.

    

    ARTICLE
      19 - CONDEMNATION

    

    In
      the
      event that an authority superior to the Lessor, such as the State of Washington
      or the United States of America should condemn the Premises of the APEL facility
      for public use, whether the right condemned shall consist of the fee simple
      title or interest less than fee simple but of such nature as to render
      operations by the Lessee impractical
      or unfeasible, then this Lease Agreement shall forthwith terminate. Lessor
      shall
      not be obligated in any way to Lessee as a result of such condemnation, except
      to pay to Lessee any sums actually paid to Lessor by the condemning authority
      for rent paid by Lessee but not yet earned by Lessor, or for Lease improvements
      owned by Lessee. Lessee shall be responsible for recovering any damages to
      which
      Lessee is legally entitled directly from the condemning authority.

    

    ARTICLE
      20 - DAMAGE OR DESTRUCTION

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

      
        	
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                  Northwest Contract #X-40403 

              	
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                  Lease Agreement #014 

              	
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                  Date: May 1, 2007

              

      

    A.    If
      the
      Premises or the APEL facility are damaged or destroyed by fire or any cause
      other than an act or omission of Lessee, its employees, agents, invitees, or
      licensees, the Lessor
      shall restore the Premises and the APEL facility, except for such fixtures,
      improvements and alterations as are installed by Lessee, as nearly as
      practicable to their condition
      immediately prior to such damage or destruction. The Lessee, at the Lessee's
      expense, shall so restore all such fixtures, improvements, and alterations
      installed by the Lessee. The Lessor, at Lessee's expense, shall so restore
      the
      Premises and the APEL facility with respect to all damage, including
      contamination of the APEL facility or the environment, caused by any act or
      omission of Lessee, its employees, agents, invitees or licenses, and the Lessee
      agrees to reimburse Lessor upon demand for all sums expended for such
      restoration. The obligations to restore provided in this paragraph shall be
      subject to Lessor's termination rights provided below. Any restoration shall
      be
      promptly commenced and diligently prosecuted. The Lessor shall not be liable
      for
      any special, consequential or punitive damages by reason of any such damage
      or
      destruction.

    

    B.    Notwithstanding
      any of the foregoing provisions of this Article 20, in the event the Premises
      or
      the APEL facility shall be destroyed or damaged to such an extent that the
      Lessor deems that it is not economically feasible to restore the same, then
      the
      Lessor may terminate this Lease as of the date of the damage or destruction
      by
      giving the Lessee notice to that effect.

     

    C.    If
      the
      Lessor undertakes to restore the Premises or the APEL facility as provided
      within this Article 20, then commencing with the date of the damage or
      destruction and continuing throughout the period of restoration, the rent for
      the Premises shall be abated for such period in the same proportion as the
      untenable portion of each type of space within the Premises as defined in
      Article 4, Section A, “MONTHLY RENT PAYMENTS” bears to the whole thereof, except
      that there shall be no abatement to the extent that any such damage or
      destruction is caused by any act or omission of the Lessee, its employees,
      agents, invitees or licensees.

    

    ARTICLE
      21 - ASSIGNMENT AND SUBLETTING

    

    Neither
      this Lease nor any right hereunder may be assigned, transferred, encumbered
      or
      sublet in whole or in part by the Lessee, by operation of law or otherwise,
      without
      the Lessor's prior written consent, such consent not to be unreasonably
      withheld. The Lessor may assign its interest in this Lease.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

      
        	
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                  Northwest Contract #X-40403 

              	
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                  Lease Agreement #014 

              	
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                  Date: May 1, 2007

              

      

    

     

    ARTICLE
      22 - CLOSURE AND SURRENDER OF PREMISES

    

    A.    Subject
      to the covenants and conditions set forth within this Lease, the Lessee, at
      the
      expiration or sooner termination of this Lease, shall quit and surrender the
      Premises in good, neat, clean and sanitary condition, except for reasonable
      wear
      and tear, and damage not caused by acts or omissions by Lessee, its employees,
      agents, invitees or licensees.

    

    B.    Lessee
      shall provide a level of financial assurance acceptable to Lessor, demonstrating
      Lessee’s ability to restore the Premises as required by Article 22, Section A
      above. The amount of financial assurance shall be based on a closure plan with
      a
      corresponding cost estimate prepared by Lessee and accepted by Lessor. The
      closure plan and financial assurance shall be provided in a form acceptable
      to
      Lessor prior to Beneficial Occupancy. Such financial assurance may take the
      form
      of:

    

    1.
      Insurance

    2.
      Financial Test (Self-Insurance)

    3.
      Corporate Guarantee

    4.
      Irrevocable Letter of Credit

    5.
      Trust
      Fund

    6.
      Bond

    7.
      Combination of trust fund(s), bond(s), letter(s) of credit, and
      insurance.

    

    Unless
      otherwise required in writing by Lessor, the requirement for a closure plan
      and
      proof of financial assurance are required only for Classes W, W1, W2, N and
      N1
      tenants.

    

    ARTICLE
      23 - INSPECTION OF PREMISES

     

    Subject
      to the Security provisions of Article 33, “Security”, the Lessee shall allow
      Lessor escorted access at all reasonable times to said Premises for the purpose
      of inspection and to fulfill any of Lesson’s obligations under this Lease.
      Lessor shall have the right to inspect the Premises and review Lessee’s
      activities to provide reasonable assurance to the Lessor and/or regulatory
      authorities that such activities and condition of the Premises are in compliance
      with applicable environmental regulations and permit conditions or commitments,
      industrial safety, legal, policy, procedural and protocol requirements
      established for APEL and applicable to Lessee’s activities within APEL. Such
      review shall in no way relieve Lessee of primary responsibility or liability
      for
      such compliance, nor the consequences of any failure of Lessee to
      comply.
      Lessee
      shall provide written procedures for access to Radiological areas for
      inspection.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

      
        	
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                  Northwest Contract #X-40403 

              	
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                Tenant
                  Lease Agreement #014 

              	
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                  Date: May 1, 2007

              

      

    

     

    ARTICLE
      24 - INSTALLATION OF SIGNS

    

    The
      Lessee will not cause or permit the display of any sign, notice or advertisement
      in or about the Premises or the APEL facility without Lessor's prior written
      consent. Lessor shall have the right to place and maintain "For Rent" signs
      in a
      conspicuous place on said Premises for thirty (30) days prior to expiration
      of
      this Lease.

    

    ARTICLE
      25 - HOLDOVER 

    

    If
      the
      Lessee lawfully holds over after the expiration of the term of this Lease,
      such
      tenancy shall be a month to month tenancy. During such tenancy the Lessee agrees
      to pay Lessor the same rate as provided herein, and to be bound by all the
      applicable terms, covenants and conditions herein specified.

    

    ARTICLE
      26 - DISPUTES

    

    Pending
      resolution of a disputed matter, the Parties shall continue performance of
      their
      respective obligations pursuant to this Lease. Disputes regarding any factual
      matter relating to this Lease shall be discussed by the Parties’ authorized
      representatives who shall use their reasonable efforts to amicably and promptly
      resolve the dispute. Should the authorized representatives be unable to resolve
      any controversy or claim arising out of or relating to this Lease, or the breach
      thereof, the Parties agree that the controversy or claim shall be settled by
      binding arbitration in accordance with the Commercial Arbitration Rules of
      the
      American Arbitration Association, and judgment upon the award rendered by the
      Arbitrator(s) shall be entered in any court having jurisdiction
      thereof.

    

    ARTICLE
      27 - DEFAULT

    

    A.    If
      any
      rents reserved, or any part thereof, shall be and remain unpaid when the same
      shall become due, or if Lessee shall violate or default in any of the covenants
      and agreements herein contained and, after receiving written notice of such
      violation or default, fail to remedy in 15 days, or immediately in the event
      of
      a fire, health or safety issue, then the Lessor may terminate this Lease upon
      giving the notice required by law, and re-enter and take possession of said
      Premises. If Lessee fails to remove its property from
      the
      premises in a timely manner, Lessor has the right to remove said property and
      place it in safe storage. Lessee agrees to pay rent due for said storage.
      Notwithstanding such re-entry by Lessor, the liability of Lessee for the rent,
      Lease tax, and utilities provided herein, as well as the financial obligations
      and guarantees set forth in Article 4, “Rent”, shall not be extinguished for the
      balance of the term of the Lease. Lessee shall continue to pay the rent, Lease
      tax, and utilities as they become due, and covenants and agrees to make good
      to
      the Lessor any deficiency arising after re-entry and re-letting of the Premises
      at a lesser rental than herein agreed to. The Lessee shall pay such deficiency
      each month as the amount thereof is ascertained by the Lessor.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

      
        	
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                  Northwest Contract #X-40403 

              	
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                Tenant
                  Lease Agreement #014 

              	
                Effective
                  Date: May 1, 2007

              

      

    

     

    B.     If
      by
      reason of any default on the part of the Lessee it becomes necessary for the
      Lessor to employ an attorney or in case Lessor shall bring suit to recover
      any
      rent due hereunder, or for breach of any provision of this Lease or to recover
      any rent due hereunder, or for breach of any provision of this Lease or to
      recover possession of the leased premises, or if Lessee shall bring any action
      for any relief against Lessor, 

    declaratory
      or otherwise, arising out of this Lease, the prevailing party in such action
      shall be awarded reasonable attorney's fees and all costs and expenses expended
      or incurred in connection with such action.

    

    C.    
The
      rights and remedies of the Lessor in this Article are in addition to any other
      rights or remedies provided by law and under this Lease.

    

    ARTICLE
      28 - TERMINATION

    

    In
      addition to the provisions set forth in Article 27, “Default”, this Lease also
      may be terminated by either party as provided in this article. A partial
      termination of the Lease will be permitted if the Lessor requires the surrender
      of a portion of the leased premises for any reason or agrees to accept Lessee’s
      surrender of a portion of the leased premises. The party initiating termination
      shall give the other party at least twelve months advanced written notice of its
      intent to terminate. Rental payments after a partial termination shall be
      reduced in proportion to the related reduction in occupancy of the Premises
      and
      upon Lessee’s satisfactory surrender of the premises. Rental payments due after
      termination of the lease, whether the entire lease or of a portion, shall be
      payable until Lessee surrenders the Premises in the condition required by the
      terms of this Lease. The parties may agree upon a shorter notice period prior
      to
      termination so long as the terms of such agreement are in a writing executed
      by
      the authorized representatives of both parties.

    

    ARTICLE
      29 - NOTICES

    

    A. All
      notices, demands, and requests to be given by either party to the other shall
      be
      in writing and served either personally or sent by United States mail, postage
      pre-paid, to the addresses below:

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	
              Energy
                Northwest Contract #X-40403 

            	
              Revision
                No: 11

            
	
              Tenant
                Lease Agreement #014 

            	
              Effective
                Date: May 1, 2007

            

    

     

     

    
      	TO LESSOR
              at:  	 	
              Energy Northwest

              Attention: Mr. Jerry Paetel

              Mail Drop 1040

              P.O. Box 968

              Richland, WA 99352

            
	 	 	 
	TO LESSEE
              at:  	 	
              IsoRay, Inc.

              ATTN: Mr. Jonathan Hunt

              350 Hills St. Suite 106

              Richland, WA
                99354

            

    

                                      
      

    B. 
      NONDISCLOSURE 

     

    1. Lessee
      agrees not to divulge to third parties, without the written consent of the
      Contracting Officer, any information which relates to the technical or business
      activities of Energy Northwest obtained from or through Energy Northwest in
      connection with the performance of this contract unless:

    

    
      	
              a.

            	
              The
                information was known to the Lessee prior to obtaining the same from
                Energy Northwest;

            
	
              b.

            	
              The
                information is, at the time of disclosure by the Lessee, then in
                the
                public domain; or

            
	
              c.

            	
              The
                information is obtained by the Lessee from a third party who did
                not
                receive the same, directly or indirectly, from Energy Northwest and
                who
                has no obligation of nondisclosure with respect
                thereto.

            

    

     

    Lessee
      further agrees that he will not, without the prior written consent of the
      Contracting Officer, disclose to any third party any information developed
      or
      obtained by the Contractor in the performance of this contract except to the
      extent that such information falls within one of the categories described in
      a.,
      b., or c. above.

     

    2. 
      If so
      requested by the Contracting Officer, the Lessee further agrees to require
      its
      employees to execute a Nondisclosure Agreement prior to performing under this
      Contract.

     

    3.
       Lessee
      shall not release any information concerning the work under this Contract or
      any
      part thereof in the form of advertising or publication, including news releases
      or professional articles, without the prior written approval of the Contracting
      Officer.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

      
        	
                Energy
                  Northwest Contract #X-40403 

              	
                Revision
                  No: 11

              
	
                Tenant
                  Lease Agreement #014 

              	
                Effective
                  Date: May 1, 2007

              

      

       

    

    4. Lessor
      shall maintain current nondisclosure agreements with Lessee for the duration
      of
      this lease. All employees, subcontractors, or other personnel entering the
      Premises or having access to proprietary information must sign a nondisclosure
      agreement provided by the Lessee.

    

    ARTICLE
      30 - WAIVER OF RIGHTS

    

    The
      failure of either party to insist upon strict performance of any of the
      covenants and conditions of this Lease, or to exercise any option or right
      herein conferred, shall not be construed to be a waiver or relinquishment of
      any
      such option or right, or any other covenants or agreements, but the same shall
      be and remain in full force and effect.

    

    ARTICLE
      31 - TRANSFER OF OBLIGATION

    

    The
      covenants and conditions of this Lease shall be binding upon the heirs, legal
      representatives, successors and agreed assigns of any or all the Parties
      hereto.

    

    ARTICLE
      32 - GOVERNING LAW

    

    This
      Lease shall be governed by the laws of the State of Washington.

    

    ARTICLE
      33 - SECURITY

    

    A.    Both
      Lessor and Lessee, and their respective, employees, agents, invitees and
      licensees agree to comply with all security regulations and procedures
      established by the Lessor for the APEL facility. Lessor shall provide Lessee
      employees, and such other individuals designated by Lessee, with electronic
      security access and photo identification cards for access to the general APEL
      facility, including common use areas. Lessee shall pay Lessor thirty dollars
      ($30) for each electronic access key card with picture or twenty five dollars
      ($25) for a keycard without a picture and ten dollars ($10) for a photo ID
      card
      only, or for replacements thereof due to damage or loss.

    

    B.    
Lessee
      shall provide and maintain at its sole expense its own security provisions
      specific to portions of the Lessee Premises for which Lessee security
      requirements exceed those general APEL facility security provisions provided
      by
      Lessor. Lessee shall provide Lessor reasonable access to such Lessee secured
      areas in case of emergency, and to provide Lessor with reasonable assurance
      that
      Lessee remains in compliance with the terms and conditions of this Lease, and
      to
      conduct routine facility maintenance and inspections in accordance with the
      terms and conditions of this Lease. Lessee shall provide to the Lessor a copy
      of
      Lessee’s security procedures.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

      
        	
                Energy
                  Northwest Contract #X-40403 

              	
                Revision
                  No: 11

              
	
                Tenant
                  Lease Agreement #014 

              	
                Effective
                  Date: May 1, 2007

              

      

       

    

    ARTICLE
      34 - ENVIRONMENT, HEALTH AND SAFETY

    

    The
      Lessee shall be solely responsible for all Lessee activities conducted within
      APEL to ensure that such activities are, on an on-going basis, in compliance
      with the environmental/regulatory requirements of the Environmental Protection
      Agency or the Washington State Department of Ecology, the health and safety
      requirements of OSHA, WSHA, the City of Richland and Benton County, and with
      any
      environmental or personnel health and safety requirements that may be
      established by any regulatory agency and/ or APEL management.

    

    Lessee
      agrees to collect and dispose of any and all hazardous waste generated by
      lessee’s activities at APEL in compliance with local, state, and federal laws
      and regulations at its own expense. If Lessee's waste generation activity
      qualifies for Small Quantity Generator (SQG) status as described in WAC
      173-303-070(8), Lessee may, in accordance with APEL Procedure 14.0, arrange
      for
      disposal through the Benton County SQG Program (phone 509-942-7387) at the
      Regional Moderate Risk Waste Facility located at the City of Richland Landfill.
      If the Lessee intends to arrange disposal at another facility, the APEL Director
      shall be so informed at least 30 days in advance of disposal. The Lessee agrees
      that all hazardous wastes will be accumulated in accordance with the satellite
      accumulation requirements of WAC 173-303-200(2). If the Lessee's
      hazardous waste
      generation activity exceeds the small quantity generator criteria,
      the Lessee's wastes shall be managed through the APEL 90-Day accumulation
      area in conformance with APEL Procedure 9.0 and this contract. In the event,
      Lessor occurs
      additional costs as a result of waste generated by Lessee, Lessee agrees to
      reimburse Lessor for costs incurred.

    

    ARTICLE
      35 - ORDER OF PRECEDENCE

    

    The
      Contract comprises the following documents in the order of precedence set forth
      below:

    

    1. Amendments
      or Supplemental Agreements to APEL Lease

    

    2. APEL
      Lease

     

    3. Exhibit
      A, Description of Premises

    

    
      
        4.
          Exhibit
          B, Procedures and Other Documents 

      

    

     

    The
      above
      order of precedence controls in the event of any conflict, inconsistency or
      ambiguity in the terms and conditions set forth within these
      documents.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

      
        	
                Energy
                  Northwest Contract #X-40403 

              	
                Revision
                  No: 11

              
	
                Tenant
                  Lease Agreement #014 

              	
                Effective
                  Date: May 1, 2007

              

      

    

    

    ARTICLE
      36 - ENTIRE AGREEMENT

    

    This
      document contains the entire and integrated agreement of the Parties and may
      not
      be modified or amended except in writing signed and acknowledged by both
      Parties.

    

    ARTICLE
      37 - SIGNATURES

    

    IN
      WITNESS WHEREOF, the Parties hereto have signed this Lease on the date(s)
      written below.

    

    

    
      	/s/ Jerry
              Paetel                                           
              	Principal Contracting
              Officer 	5/2/07
	LESSOR:	
              Title

            	Date
	 	 	 
	/s/ Jonathan
              Hunt                                     
              	CFO                                           	5/2/07
	LESSEE:	
              Title

            	DateCERTIFICATE
      OF DESIGNATIONS,

    PREFERENCES
      AND RIGHTS OF

    SERIES
      A PREFERRED STOCK

    OF
      MIT HOLDING, INC.

    

    

    MIT
      Holding, Inc., a Delaware corporation (the “Corporation”), hereby certifies that
      pursuant to the authority contained in its Certificate of Incorporation, and
      in
      accordance with Section 151 of the General Corporation Law of the State of
      Delaware (the “Delaware General Corporation Law”), its Board of Directors has
      adopted the following resolution:

    

    RESOLVED,
      that a
      series of Preferred Stock of the Corporation to be designated “Series A
      Preferred Stock” be, and it hereby is, created, the Series A Preferred Stock to
      consist of 5,000 shares, of which the preferences and relative participating,
      optional and other rights, and the qualifications, limitations, or restrictions
      of such preferences and rights, are as set forth in the Certificate of
      Designations, Preferences and Rights of Series A Preferred Stock of MIT Holding,
      Inc., on the terms contained therein, and in the form set attached hereto as
      Exhibit
      A.

    

    The
      qualifications, limitations or restrictions of such preferences and rights
      of
      such Series A Preferred Stock are as follows:

    

    Section
      1. Definitions

     

    Affiliate.
      The
      term “Affiliate” shall mean, as to any specified person, a person that directly,
      or indirectly through one or more intermediaries, controls or is controlled
      by,
      or is under common control with, the person specified; provided that, as to
      any
      specified person, “Affiliate” shall not include any persons which are limited
      partners of the person specified.

     

    Business
      Day.
      The
      term “Business Day” shall mean any day, other than a Saturday or Sunday or a day
      on which banks in the State of New York are authorized or required by law,
      regulation or executive order to close.

     

    Capital
      Stock.
      The
      term “Capital Stock” shall mean all classes or series of capital stock issued by
      the Corporation, including without limitation, the Common Stock and the Series
      A
      Preferred Stock.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Common
      Stock.
      The
      term “Common Stock” shall mean the common stock, par value $.000001 per share,
      of the Corporation.

     

    Dividend
      Payment Date.
      The
      term “Dividend Payment Date” shall have the meaning set forth in Section l
      hereof.

     

    Dividend
      Period.
      The
      term “Dividend Period” shall mean the period from, and including, the Initial
      Issue Date to, but not including, the first Dividend Payment Date, and
      thereafter each semi-annual period from, and including, the Dividend Payment
      Date to, but not including, the next Dividend Payment Date (or earlier date
      on
      which dividends are paid).

     

    Initial
      Issue Date.
      The
      term Initial Issue Date shall mean the date on which shares of Series A
      Preferred Stock were first issued.

     

    Liquidation.
      The
      term “Liquidation” shall mean (i) any voluntary or involuntary liquidation,
      dissolution or winding up of the Corporation, (ii) the merger or consolidation
      of the Corporation with or into any other corporation, partnership or entity
      in
      which the stockholders of the Corporation receive cash or securities in complete
      exchange for the Capital Stock of the Corporation then held by them or (iii)
      a
      distribution of property or funds from the Corporation to its stockholders
      in
      connection with the sale of all or substantially all of the assets of the
      Corporation. 

     

    Person.
      The
      term “Person” (or “Persons” as the context may require) means an individual, a
      corporation, a partnership, limited liability company, a firm, a joint venture,
      an association, a trust, an unincorporated organization, a government, foreign
      or domestic, or any agency or political subdivision thereof or any other entity
      engaging in commercial activities.

     

    Preferred
      Stock.
      The
      term “Preferred Stock” shall mean the Capital Stock of the Corporation issued
      from time to time by the Corporation and designated as preferred stock of the
      Corporation in its Certificate of Incorporation or a certificate of designation
      adopted and filed pursuant to Section 151 of the Delaware General Corporation
      Law.

     

    Record
      Date.
      The
      term “Record Date” shall mean, for any class or series of Capital Stock, the
      date designated by the Board of Directors at the time a dividend is declared
      as
      the date for determining holders of record entitled to such dividend; provided,
      however, that such Record Date shall be the first day of the calendar month
      in
      which the applicable Dividend Payment Date falls or such other date designated
      by the Board of Directors for the payment of dividends that is not more than
      thirty (30) days nor less than ten (10) days prior to such Dividend Payment
      Date.

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    Subsidiary.
      The
      term “Subsidiary” shall mean, with respect to any Person, a corporation or other
      business entity of which shares of stock or other ownership interests having
      ordinary voting power to elect a majority of the board of directors or other
      managers of such corporation or business entity are at the time owned, directly
      or indirectly through one or more intermediaries, by such Person.

     

     Warrants.
      The
      term Warrants shall mean the warrants issued to the holders of the shares of
      Series A Preferred Stock. Each Warrant entitles the holder to purchase 2,000
      shares of Common Stock, subject to adjustment. 

    

    Section
      2. Designation
      and Amount.
      There
      shall be a series of Preferred Stock of the Corporation designated as “Series A
      Preferred Stock” (the “Series A Preferred Stock”), par value $.000001 per share,
      and the number of shares constituting such series shall be 5,000. The Series
      A
      Preferred Stock shall entitle the holder thereof to exercise the voting rights,
      to participate in distributions and to have the benefits as set forth herein
      and
      in the Certificate of Incorporation of the Corporation and as required by
      applicable law. The liquidation preference amount (“Liquidation Preference
      Amount”) of each share of Series A Preferred Stock shall be $1,000.

    

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    Section
      3. Dividends
      and Distributions.
      Dividends shall accrue and be cumulative on each share of Series A Preferred
      Stock from the Initial Issue Date. If and when declared by the Board of
      Directors, the holders of Series A Preferred Stock shall be entitled to receive
      dividends in cash or Common Stock, at the option of the Corporation, at a rate
      of six percent (6.0%) per annum and the Board of Directors shall, to the extent
      that the Corporation elects to pay such dividend in cash, declare and cause
      such
      dividends to be paid out of and to the extent of funds legally available for
      such purpose, and no more, payable in equal semi-annual payments on the last
      day
      of June and December in each year (each a “Dividend Payment Date”), unless such
      day is not a Business Day, in which case on the next Business Day, commencing
      on
      December 31, 2007, to holders of record as they appear on the stock transfer
      books of the Corporation on the applicable Record Date at a rate of six percent
      (6.0%) per annum until all accrued dividends have been paid in full. Dividends
      payable on the Series A Preferred Stock for all periods, including any period
      less than a half year, shall be computed on the basis of a 365 or 366 day year,
      as the case may be, and paid for the actual number of days elapsed. In the
      event
      that the Corporation elects to cause the dividends to be paid in shares of
      the
      Corporation’s Common Stock, then the number of shares of Common Stock to be
      issued to each holder of shares of Series A Preferred Stock shall be equal
      to
      the quotient of (i) the amount of the dividend, and (ii) the volume weighted
      average price per share of the Common Stock as reported by Bloomberg, L.P.
      for
      the five Business Days prior to the Dividend Payment Date. In the event that
      such price is not reported by Bloomberg L.P., then the price utilized to
      calculate the number of shares of Common Stock to be issued shall be either
      (i)
      the price reported by a reporting service comparable to Bloomberg L.P. as
      determined in good faith by the Board of Directors of the Corporation, or (ii)
      in the event that such price is not so reported, then the price shall be
      determined in good faith by the Board of Directors of the Corporation.

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    Section
      4. Liquidation
      Preference Amount.
      In the
      event of any Liquidation, each holder of an outstanding share of Series A
      Preferred Stock shall be entitled to receive, and be paid out of the assets
      of
      the Corporation available for distribution to its stockholders (in cash, if
      available) after payment or provision of payment of all debts and other
      liabilities of the Corporation, the Liquidation Preference Amount, plus all
      accumulated and unpaid dividends on such share to the date of final distribution
      to the holder of such share, regardless of whether declared, and no more, before
      any payment shall be made or any assets distributed (i) to the holders of any
      Capital Stock ranking junior (either as to dividends or upon Liquidation) to
      the
      Series A Preferred Stock or (ii) to the holders of any Capital Stock ranking
      on
      parity (either as to dividends or upon Liquidation) with the Series A Preferred
      Stock, except distributions made ratably on the Series A Preferred Stock and
      all
      other such parity stock in proportion to the total amounts to which the holders
      of all such series are entitled upon Liquidation. If, upon any Liquidation
      of
      the Corporation, the assets of the Corporation, or the proceeds thereof, to
      be
      distributed among the holders of the outstanding shares of the Series A
      Preferred Stock would be less than the aggregate Liquidation Preference Amount
      of all such outstanding shares plus all accumulated and unpaid dividends on
      all
      such shares to the date of the final distribution to the holders thereto then
      such lesser amounts shall be distributed ratably among the holders of the
      outstanding shares of Series A Preferred Stock based on the amounts they would
      otherwise be entitled
      to receive in such Liquidation were payment to be made in full, and no
      distributions shall be made to the holders of any Capital Stock ranking junior
      to the Series A Preferred Stock upon such Liquidation. After payment in full
      of
      the Liquidation Preference Amount and any accumulated and unpaid dividends
      in
      respect of the Series A Preferred Stock upon Liquidation, the holders of such
      shares in their capacity as such shall not be entitled to any further right
      or
      claim to the remaining assets of the Corporation.

     

    Section
      5. Conversion

     

    (a)
      Conversion
      by the Holder.
      Each
      share of Series A Preferred Stock shall be convertible, at the option of the
      holder at any time. The initial conversion price (the “Conversion Price”) per
      share for shares of Series A Preferred Stock shall be $0.50 provided, however,
      that the Conversion Price for the Series A Preferred Stock shall be subject
      to
      adjustment as set forth in the Corporation’s Certificate of
      Incorporation.

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    (b)
      Conversion
      by the Corporation.
      Each
      share of Series A Preferred Stock may, at the option of the Corporation, be
      automatically be converted into shares of Common Stock at the Conversion Price
      at the time in effect for such Preferred Stock following the effectiveness
      of a
      registration statement registering under the Securities Act of 1933, as amended,
      the resale of the shares of Common Stock issuable upon the conversion of the
      Series A Preferred Stock and the exercise of the Warrants, if the closing price
      of the Common Stock is above 300% of the Conversion Price per share during
      any
      period of 30 consecutive trading days and the average trading volume of the
      Corporation’s Common Stock is a minimum of 50,000 shares per day during such 30
      day period, provided that the Corporation sends to the holder a notice of
      conversion within 30 days of such 30th
      trading
      day. Upon the Corporation sending such notice of conversion, such shares of
      Series A Preferred Stock shall be automatically converted into and represent
      the
      right to receive, upon surrender of the certificates therefor, the applicable
      number of shares of Common Stock. 

    

    (c)
      Mechanics
      of Conversion.
      Before
      any holder of Series A Preferred Stock shall be entitled to convert the same
      into shares of Common Stock, such holder shall surrender the certificate or
      certificates therefor, duly endorsed, at the office of the Corporation or any
      transfer agent for the Series A Preferred Stock and shall give written notice
      to
      the Corporation at its principal corporate office, of the election to convert
      the same and shall state therein the name or names in which the certificate
      or
      certificates for shares of Common Stock are to be issued. The Corporation shall,
      as soon as practicable thereafter, issue and deliver at such office to such
      holder of Series A Preferred Stock, or to the nominee or nominees of such
      holder, a certificate or certificates for the number of shares of Common Stock
      to which such holder shall be entitled as aforesaid. Such conversion shall
      be
      deemed to have been made immediately prior to the close of business on the
      date
      of such surrender of the shares of Series A Preferred Stock to be converted,
      and
      the person or persons entitled to receive the shares of Common Stock issuable
      upon such conversion shall be treated for all purposes as the record holder
      or
      holders of such shares of Common Stock as of such date.

    

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    (d)
      Stock-Splits
      and Combinations
      In the
      event the Corporation should at any time or from time to time after the Initial
      Issuance Date fix a record date for the effectuation of a split or subdivision
      of the outstanding shares of Common Stock or the determination of holders of
      Common Stock entitled to receive a dividend or other distribution payable in
      additional shares of Common Stock or other securities or rights convertible
      into, or entitling the holder thereof to receive directly or indirectly,
      additional shares of Common Stock (hereinafter referred to as “Common Stock
      Equivalents”) without payment of any consideration by such holder for the
      additional shares of Common Stock or the Common Stock Equivalents (including
      the
      additional shares of Common Stock issuable upon conversion or exercise thereof,
      then, as of such record date (or the date of such dividend distribution, split
      or subdivision if no record date is fixed), the Conversion Price of the Series
      A
      Preferred Stock shall be appropriately decreased so that the number of shares
      of
      Common Stock issuable on conversion of each share shall be increased in
      proportion to such increase in the aggregate number of shares of Common Stock
      outstanding and those issuable with respect to such Common Stock Equivalents
      with the number of shares issuable with respect to Common Stock Equivalents
      determined from time to time. 

     

    If
      the
      number of shares of Common Stock outstanding at any time after the issuance
      of
      Series A Preferred Stock is decreased by a combination of the outstanding shares
      of Common Stock, then, following the record date of such combination, the
      Conversion Price for the shares of Series A Preferred Stock shall be
      appropriately increased so that the number of shares of Common Stock issuable
      on
      conversion shall be decreased in proportion to such decrease in outstanding
      shares.

     

    (e)
      Adjustment
      for Certain Dividends and Distributions.
      In the
      event the Corporation at any time, or from time to time, after the issuance
      of
      shares of Series A Preferred Stock shall make or issue, or fix a record date
      for
      the determination of holders of Common Stock entitled to receive, a dividend
      or
      other distribution payable in additional shares of Common Stock, then and in
      each such event the Conversion Price then in effect shall be decreased as of
      the
      time of such issuance or, in the event such a record date shall have been fixed,
      as of the close of business on such record date, by multiplying the Conversion
      Price then in effect by a fraction:

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    (1) the
      numerator of which shall be the total number of shares of Common Stock issued
      and outstanding immediately prior to the time of such issuance or the close
      of
      business on such record date, and

     

    (2) the
      denominator of which shall be the total number of shares of Common Stock issued
      and outstanding immediately prior to the time of such issuance or the close
      of
      business on such record date plus the number of shares of Common Stock issuable
      in payment of such dividend or distribution, provided, however, if such record
      date shall have been fixed and such dividend is not fully paid or if such
      distribution is not fully made on the date fixed therefor, the Conversion Price
      shall be recomputed accordingly as of the close of business on such record
      date
      and thereafter the Conversion Price shall be adjusted pursuant to this paragraph
      as of the time of actual payment of such dividends or
      distributions.

     

    (f)
      Adjustments
      for Other Dividends and Distributions.
      In the
      event the Corporation at any time or from time to time after the Original Issue
      Date shall make or issue, or fix a record date for the determination of holders
      of Common Stock entitled to receive, a dividend or other distribution payable
      in
      securities of the Corporation other than shares of Common Stock, then and in
      each such event provision shall be made that the holders of shares of Series
      A
      Preferred Stock shall receive upon conversion thereof in addition to the number
      of shares of Common Stock receivable thereupon, the amount of securities of
      the
      Corporation that they would have received had their shares of Series A Preferred
      Stock been converted into Common Stock on the date of such event and had they
      thereafter, during the period from the date of such event to and including
      the
      actual conversion date, retained such securities receivable by them as aforesaid
      during such period giving application to all adjustments called for during
      such
      period, under this paragraph with respect to the rights of the holders of the
      Series A Preferred Stock.

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    (g)
      Adjustment
      for Reclassification, Exchange, or Substitution.
      If the
      Common Stock issuable upon the conversion of the Series A Preferred Stock shall
      be changed into the same or a different number of shares of any class or classes
      of stock, whether by capital reorganization, reclassification, or otherwise
      (other than a subdivision or combination of shares, a Common Stock dividend
      as
      provided for above, or a reorganization, merger, consolidation, or sale of
      assets provided for below), then and in each such event the holder of each
      such
      share of Series A Preferred Stock shall have the right thereafter to convert
      such share into the kind and amount of shares of stock and other securities
      and
      property receivable upon such reorganization, reclassification, or other change,
      by holders of the number of shares of Common Stock into which such shares of
      Series A Preferred Stock were convertible immediately prior to such
      reorganization, reclassification, or change, all subject to further adjustment
      as provided herein.

     

    (h)
      Adjustment
      for Merger or Reorganization, etc.
      In case
      of any consolidation or merger of the Corporation with or into another
      corporation or the sale of all or substantially all of the assets of the
      Corporation to another corporation (other than a consolidation, merger or sale
      which results in the automatic conversion of the Series A Preferred Stock,
      each
      share of Series A Preferred Stock shall thereafter be convertible for the kind
      and amount of shares of stock or other securities or property to which a holder
      of the number of shares of Common Stock of the Corporation
      deliverable upon conversion of such Series A Preferred Stock would have been
      entitled upon such consolidation, merger or sale; and, in such case, appropriate
      adjustment (as determined in good faith by the Board of Directors) shall be
      made
      in the application of the provisions in this Section 5(h) set forth with respect
      to the rights and interest thereafter of the holders of the Series A Preferred
      Stock, to the end that the provisions set forth in this Section 5(h) (including
      provisions with respect to changes in and other adjustments of the Conversion
      Price) shall thereafter be applicable, as nearly as reasonably may be, in
      relation to any shares of stock or other property thereafter deliverable upon
      the conversion of the Series A Preferred Stock.

    

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    (i)
      Adjustments
      to Conversion Price for Diluting Issues:

     

    (i) Special
      Definitions.
      For
      purposes of this Section 5(i) the following definitions shall
      apply:

     

    (A) “Option”
shall
      mean rights, options or warrants to subscribe for, purchase or otherwise acquire
      Common Stock or Convertible Securities, excluding options granted to employees
      or consultants of the Corporation pursuant to a plan or arrangement adopted
      by
      the Board of Directors of the Corporation.

     

    (B) “Convertible
      Securities”
shall
      mean any evidences of indebtedness, shares or other securities directly or
      indirectly convertible into or exchangeable for Common Stock.

     

    (C) “Additional
      Shares of Common Stock”
shall
      mean all shares of Common Stock issued (or, pursuant to Subsection 5(i)(iii)
      below, deemed to be issued) by the Corporation after the Initial Issue Date,
      other than shares of Common Stock issued or issuable:

     

    (I) upon
      conversion of shares of Series A Preferred Stock

     

    (II)
       as
      a
      dividend or distribution on shares of Series A Preferred Stock; 

     

    (III) by
      reason
      of a dividend, stock split, split-up or other distribution on shares of Common
      Stock excluded from the definition of Additional Shares of Common Stock by
      the
      foregoing clauses (I) and (II) or this clause (III); or

     

    (IV)
       any
      shares of Common Stock issuable in accordance with outstanding options, warrants
      and conversion rights;

     

    (V)
       shares
      issuable pursuant to existing option plans and compensation plans, including
      up
      to 15,000,000 shares issuable to the Corporation’s officers pursuant to such
      plans.

    

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    (ii)
       No
      Adjustment of Conversion Price.
      No
      adjustment in the number of shares of Common Stock into which the Series A
      Preferred Stock is convertible shall be made pursuant to Section 5(i)(iv),
      by
      adjustment in the applicable Conversion Price thereof unless the consideration
      per share (determined pursuant to Section 5(i)(v)) for an Additional Share
      of
      Common Stock issued or deemed to be issued by the Corporation is less than
      the
      applicable Conversion Price in effect on the date of, and immediately prior
      to,
      the issue of such Additional Shares. 

     

    (iii)
       Issue
      of Securities Deemed Issue of Additional Shares of Common Stock.
      For
      purposes of this Section 5(i), if the Corporation at any time or from time
      to
      time after the Initial Issue Date shall issue any Options or Convertible
      Securities or shall fix a record date for the determination of holders of any
      class of securities entitled to receive any such Options or Convertible
      Securities, then the maximum number of shares of Common Stock (as set forth
      in
      the instrument relating thereto without regard to any provision contained
      therein for a subsequent adjustment
      of such number) issuable upon the exercise or conversion of same, shall be
      deemed to be Additional Shares of Common Stock issued as of the time of such
      issue or, in the case such a record date shall have been fixed, as of the close
      of business on such record date; provided, that Additional Shares of Common
      Stock shall not be deemed to have been issued unless the consideration per
      share
      (determined pursuant to Section 5(i)(v) hereof) of such Additional Shares of
      Common Stock would be less than the applicable Conversion Price in effect on
      the
      date of and immediately prior to such issue, or such record date, as the case
      may be; provided, that in any such case in which Additional Shares of Common
      Stock are deemed to be issued:

     

    (A)
       No
      further adjustment in the Conversion Price shall be made upon the subsequent
      issue of Convertible Securities or shares of Common Stock upon the exercise
      of
      such options or conversion or exchange of such Convertible
      Securities;

     

    (B)
       If
      such
      Options or Convertible Securities by their terms provide, with the passage
      of
      time or otherwise, for any increase in the consideration payable to the
      Corporation, or decrease in the number of shares of Common Stock issuable,
      upon
      the exercise, conversion or exchange thereof, the Conversion Price computed
      upon
      the original issue thereof (or upon the occurrence of a record date with respect
      thereto), and any subsequent adjustments based thereon, shall, upon any such
      increase or decrease becoming effective, be recomputed to reflect such increase
      or decrease insofar as it affects such Options or the rights of conversion
      or
      exchange under such Convertible Securities;

     

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    (C)
       No
      readjustment pursuant to clause (B) above shall have the effect of increasing
      the Conversion Price to an amount which exceeds the Conversion Price on the
      original adjustment date;

     

    (D)
       Notwithstanding
      clause (B) above, upon the expiration or termination of any unexercised Option
      or Convertible Securities, the Conversion Price shall be readjusted to the
      Conversion Price in effect prior to the issuance of such securities, subject
      to
      adjustment as a result of the issuance of additional securities subsequent
      to
      the issuance thereof ; and

     

    (E)
       In
      the
      event of any increase in the number of shares of Common Stock issuable upon
      the
      exercise, conversion or exchange of any Option or Convertible Securities,
      including, but not limited to, an increase resulting from the antidilution
      provisions thereof (other than an increase resulting solely from an adjustment
      pursuant to this Section 5(i), the Conversion Price then in effect shall
      forthwith be readjusted to such Conversion Price as would have been obtained
      and
      the adjustment (if any) which was made upon the issuance of such Option or
      Convertible Securities not exercised or converted prior to such increase be
      made
      upon the basis of such increased number of shares, but no further adjustment
      shall be made for the actual issuance of Common Stock upon the exercise or
      conversion of any such Option or Convertible Securities.

     

    (iv) Adjustment
      of Conversion Price Upon Issuance of Additional
      Shares of Common Stock.
      In the
      event the Corporation shall at any time after the Original
      Issue Date issue Additional Shares of Common Stock (including Additional Shares
      of Common
      Stock deemed to be issued pursuant to Section 5(i)(iii), but excluding shares
      issued as a dividend or distribution as provided in 5(i)(d) or upon a stock
      split or combination as provided in Section 5(i)(e) without consideration or
      for
      a consideration per share less than the applicable Conversion
      Price in effect on the date of and immediately prior to such issue (the
“Offering Price”), then and in such event, such Conversion Price shall be
      reduced, concurrently with such issue, to a price equal to the Offering Price.
      

     

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

    In
      addition, the applicable Conversion Price shall not be so reduced at such time
      if the amount of such reduction would be an amount less than $.01, but any
      such
      amount shall be carried forward and reduction with respect thereto made at
      the
      time of and together with any subsequent reduction which, together with such
      amount and any other amount or amounts so carried forward, shall aggregate
      $.01
      or more.

     

    (v) Determination
      of Consideration.
      For
      purposes of this Section 5(i), the consideration received by the Corporation
      for
      the issue of any Additional Shares of Common Stock shall be computed as
      follows:

     

    (A) Cash
      and Property:
      Such
      consideration shall:

     

    (I)
       insofar
      as it consists of cash, be computed as the aggregate of cash received by the
      Corporation, excluding amounts paid or payable for accrued interest or accrued
      dividends;

     

    (II)
       insofar
      as it consists of property other than cash, be computed
      at the fair market value thereof at the time of such issue, as determined in
      good faith by the Board of Directors; and

     

    (III)
       in
      the
      event Additional Shares of Common Stock are issued together with other shares
      or
      securities or other assets of the Corporation for consideration which covers
      both, be the proportion of such consideration so received, computed as provided
      in clauses (I) and (II) above, as determined in good faith by the Board of
      Directors.

     

    (B) Options
      and Convertible Securities.
      The
      consideration per share received by the Corporation for Additional Shares of
      Common Stock deemed to have been issued pursuant to Section 5(i)(iii) relating
      to Options and Convertible Securities, shall be determined by
      dividing

     

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

    (x) the
      total
      amount, if any, received or receivable by the Corporation as consideration
      for
      the issue of such Options or Convertible Securities, plus the minimum aggregate
      amount of additional consideration (as set forth in the instruments relating
      thereto, without regard to any provision contained therein for a subsequent
      adjustment of such consideration) payable to the Corporation upon the exercise
      of such Options or the conversion or exchange of such Convertible Securities,
      or
      in the case of Options for Convertible Securities, the exercise of such Options
      for Convertible Securities and the conversion or exchange of such Convertible
      Securities, by

     

    (y) the
      maximum number of shares of Common Stock (as set forth in the instruments
      relating thereto, without regard to any provision contained therein for a
      subsequent adjustment of such number) issuable upon the exercise of such Options
      or the conversion or exchange of such Convertible Securities, or in the case
      of
      Options for Convertible Securities, the conversion or exchange of such
      Convertible Securities.

     

    (j)
       No
      Impairment.
      The
      Corporation will not, by amendment of its Certificate of Incorporation or
      through any reorganization, recapitalization, transfer of assets, consolidation,
      merger, dissolution, issue or sale of securities or any other voluntary action,
      avoid or seek to avoid the observance or performance of any of the terms to
      be
      observed or performed hereunder by the Corporation, but will at all times in
      good faith assist in the carrying out of all the provisions of this Section
      5
      and in the taking of all such action as maybe necessary or appropriate in order
      to protect the rights of the holders of the Series A Preferred Stock against
      impairment.

     

    (k) No
      Fractional Shares and Certificate as to Adjustments.

     

    (i)
       No
      fractional shares shall be issued upon the conversion of any share or shares
      of
      the Series A Preferred Stock, and the number of shares of Common Stock to be
      issued shall be rounded to the nearest whole share. Whether or not fractional
      shares are issuable upon such conversion shall be determined on the basis of
      the
      total number of shares of Series A Preferred Stock the holder is at the time
      converting into Common Stock and the number of shares of Common Stock issuable
      upon such aggregate conversion.

     

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

    (ii) Upon
      the
      occurrence of each adjustment or readjustment of the Conversion Price of Series
      A Preferred Stock pursuant to this Section 4, the Corporation, at its expense,
      shall promptly compute such adjustment or readjustment in accordance with the
      terms hereof and prepare and furnish to each holder of Series A Preferred Stock
      a certificate setting forth such adjustment or readjustment and showing in
      detail the facts upon which such adjustment or readjustment is based. The
      Corporation shall, upon the written request at any time of any holder of Series
      A Preferred Stock, furnish or cause to be furnished to such holder a like
      certificate setting forth (A) such adjustment and readjustment, (B) the
      Conversion Price for such at the time in effect, and (C) the number of shares
      of
      Common Stock and the amount, if any, of other property which at the time would
      be received upon the conversion of a share of Series A Preferred
      Stock.

     

    (l)
       Notices
      of Record Date.
      In the
      event of any taking by the Corporation of a record of the holders of any class
      of securities for the purpose of determining the holders thereof who are
      entitled to receive any dividend (other than a cash dividend) or other
      distribution, any right to subscribe for, purchase or otherwise acquire any
      shares of stock of any class or any other securities or property, or to receive
      any other right, the Corporation shall mail to each holder of Series A Preferred
      Stock, at least 10 days prior to the date specified therein, a notice specifying
      the date on which any such record is to be taken for the purpose of such
      dividend, distribution or right, and the amount and character of such dividend,
      distribution or right.

     

    (m)
       Reservation
      of Stock Issuable Upon Conversion.
      The
      Corporation shall at all times reserve and keep available out of its authorized
      but unissued shares of Common Stock, solely for the purpose of effecting the
      conversion of the shares of the Series A Preferred Stock, such number of its
      shares of Common Stock as shall from time to time be sufficient to effect the
      conversion of all outstanding shares of the Series A Preferred Stock; and if
      at
      any time the number of authorized but unissued shares of Common Stock shall
      not
      be sufficient to effect the conversion of all then outstanding shares of the
      Series A Preferred Stock, in addition to such other
      remedies as shall be available to the holder of such Preferred Stock, the
      Corporation will take such corporate action as may, in the opinion of its
      counsel, be necessary to increase its authorized but unissued shares of Common
      Stock to such number of shares as shall be sufficient for such purposes,
      including, without limitation, engaging in best efforts to obtain the requisite
      shareholder approval of any necessary amendment to these articles.

     

    
      
         

      

      
        15

        
          

        

      

      
         

      

    

    (n) Notices.
      Any
      notice required by the provisions of this Section 5 to be given to the holders
      of shares of Series A Preferred Stock shall be deemed given if deposited in
      the
      United States mail, postage prepaid, and addressed to each holder of record
      at
      his address appearing on the books of the Corporation.

    

    Section
      6. Voting
      Rights

     

    (a)
      The
      holders of record of shares of Series A Preferred Stock shall be entitled to
      vote together with the holders of Common Stock upon any matter submitted to
      stockholders of the Corporation for a vote. The Corporation shall not, without
      the affirmative vote of the holders of at least 50% of the shares of the Series
      A Preferred Stock outstanding at the time, given in person or by proxy, either
      in writing or at a meeting (such Series A Preferred Stock voting separately
      as a
      class) amend, alter or repeal any provisions of this Certificate, whether by
      merger, consolidation or otherwise, so as to adversely affect any right,
      preference, privilege or voting power of the Series A Preferred Stock or the
      holders thereof

     

    (b)
      In
      any matter in which the holders of the Series A Preferred Stock may vote
(as
      expressly provided herein or as may be required by law), each share of Series
      A
      Preferred Stock
      shall be entitled to such number of votes per share on each such action as
      shall
      equal the number
      of
      shares of Common Stock (including fractions of a share) into which each share
      of
Series
      A
      Preferred Stock is then convertible.

     

    
      
         

      

      
        16

        
          

        

      

      
         

      

    

    (c)
      Except as required by law, the foregoing voting provisions shall not apply
      if,
      at or prior to the time when the act with respect to which such vote would
      otherwise be required shall be effected, all outstanding shares of the Series
      A
      Preferred Stock shall have been converted.

     

    Section
      7.
       Ranking

     

    The
      Series A Preferred Stock shall, with respect to dividend rights and
      distributions upon Liquidation, rank (i) senior to the Capital Stock, including
      the Common Stock, issued from time to time by the Corporation other than any
      series of Capital Stock the terms of which specifically provide that the Capital
      Stock of such series ranks senior or on parity with the Series A Preferred
      Stock
      with respect to dividend rights and distribution upon Liquidation, (ii) junior
      to any holder of outstanding debt of the Corporation, and (iii) on parity with
      the Capital Stock issued by the Corporation the terms of which specifically
      provide that the shares of such Capital Stock rank on parity with the Series
      A
      Preferred Stock with respect to dividend rights and distributions upon
      Liquidation. 

    

    
      
         

      

      
        17

        
          

        

      

      
         

      

    

    IN
      WITNESS WHEREOF, the Corporation has caused this Certificate of Designations,
      Preferences and Rights of its Series A Preferred Stock to be duly executed
      as of
      this 2nd
      day of
      May 2007.

     

     

    
      	 	 	 
	 	MIT HOLDING, INC. 
	 
 	 
 	 
 
	 	By:  	/s/
              William C. Parker
	 	
              

              Name:
                William C. Parker

            
	 	
              Title:
                President

            

     

    
      
         

      

      
        18

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