Document:

Unassociated Document

     

    

      EQUIPMENT
        LEASE AGREEMENT Agreement
        Number   Federal
        Tax ID # 20-1361282

      This
        document was written in “Plain
        English”.
        The
        words YOU and YOUR refer to the customer. The words WE, US, and OUR Refer
        to the
        Lessor. Every attempt has been made to eliminate confusing language and create
        a
        simple, easy-to-read document. 

      
        	
                CUSTOMER
                  INFORMATION

              

      

      

        
          	
                  IsoRay
                    Medical, Inc.

                	 	 	 	 	 	 	 	 	 	 	 	 
	
                  LEGAL
                    NAME OF CUSTOMER

                	 	 	 	 	 	 	 	 	 	 	 
	
                  350
                    Hills Street, Suite 106

                	
                   

                	
                  Richland

                	 	
                	
                  WA

                	
                   

                	
                  99354

                	 	 	 	 
	
                  STREET
                    ADDRESS

                	 	 	
                  CITY

                	 	 	
                  STATE

                	 	
                  ZIP

                	 	
                  PHONE 

                	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                  BILLING
                    NAME (IF DIFFERENT FROM ABOVE)

                	
                  BILLING
                    STREET ADDRESS

                	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                  CITY

                	 	 	
                  STATE

                	 	 	
                  ZIP

                	 	
                  PHONE

                	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                  EQUIPMENT
                    LOCATION (IF DIFFERENT FROM ABOVE)

                	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 

        

      
        	
                SUPPLIER
                  INFORMATION See schedule “A”,
                  attached hereto and made a part of.

              

      

      

        
          	
                  SUPPLIER
                    INFORMATION See schedule “A”,
                    attached hereto and made a part of.

                
	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                  NAME
                    OF SUPPLIER 

                	 	 	 	 	 	 	 	 	 	 
	
                  CITY

                	 	 	 	
                  STATE

                	 	 	 	
                  ZIP

                	 	
                  PHONE

                	 	 
	
                  QUANTITY

                	
                	
                   

                	 	
                  
                    ITEM
                      DESCRIPTION

                  

                	
                	 	 MODEL
                  NO	 	
                  SERIAL

                	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	
                   See
                    schedule “A”,
                    attached hereto and made a part of.

                	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 

        

      

          

      
        	
                RENTAL
                  TERMS

              	
                RENTAL
                  PAYMENT AMOUNT

              	
                SECURITY
                  DEPOSIT

              
	
                Term
                  in months

                48
                  (MOS.)

                Rent
                  Commencement Date:

              	
                48
                  Payment of $1,331.71
                  (plus applicable taxes)

                Rental
                  Payment Period is Unless

                Otherwise
                  Indicated

              	
                 

                $2,663.42
                  Received

              

      

      END
        OF
        LEASE OPTIONS: You will have the following options at the end of the original
        term, provided the lease has not terminated early and no event of default
        under
        the lease has occurred and is continuing. THE EQUIPMENT SHALL BE SOLD ON
        AN-IS,
        WHERE-IS BASIS. If an option is not initialed below, option 2 will be designated
        as the Customer’s
        choice.

      

      Initial
        MKD
        1.
        Purchase the equipment for $1.00 OR Initial
        ______ 2. Purchase the equipment for the fair market value        plus
        any
        applicable taxes OR renew the lease per paragraph 1 OR        return
        the equipment per paragraph 6

      

      
        	
                THIS
                  IS A NONCANCELABLE/IRREVOCABLE LEASE, THIS LEASE CANNOT BE CANCELLED
                  OR
                  TERMINATED.

              

      

      TERMS
        AND
        CONDITIONS(THIS
        LEASE AGREEMENTCONTAINS PROVISIONS SET FORTH ON THE REVERSE SIDE, ALL OF
        WHICH
        ARE MADE PART OF THIS LEASE AGREEMENT)

      1.
        LEASE
        AGREEMENT: You agree to lease from us the personal property described under
        “ITEM
        DESCRIPTION”
        and as
        modified by supplements to (Continued on back)

      

        
          	
                  LESSOR
                    ACCEPTANCE

                	 	 	 	 	
                  CUSTOMER
                    ACCEPTANCE

                	 
	
                  DATED:
                    April 14 2005

                	 	 	 	 	
                  DATED:
                    April
                    3

                	
                  2005

                	 
	
                  LESSOR:
                    Nationwide Funding, LLC

                	 	 	 	 	
                  CUSTOMER:
                    IsoRay,
                    Medical, Inc.

                	 	 
	
                  SIGNATURE:
                    X /S/
                    EVAN LANG

                	 	 	 	 	
                  SIGNATURE: X
                    /S/
                    MICHAEL DUNLOP

                	 	 
	
                  TITLE:
                    PRESIDENT

                	 	 	 	 	
                  TITLE
                    CFO

                	 	 
	
                  ACCEPTANCE
                    OF DELIVERY

                

        

       

      
        	
                ACCEPTANCE
                  OF DELIVERY

              

      

      You
        certify that all the equipment listed above has been furnished, that delivery
        and installation has been fully completed and satisfactory. Further, all
        conditions and terms of this agreement have been reviewed and acknowledged.
        Upon
        your signing below, your promises herein will be irrevocable and unconditional
        in all respect. You understand and agree that we have purchased the equipment
        from the supplier, and you may contact the above supplier for you warranty
        rights, if any, which we transfer to you for the term of this lease. Your
        approval as indicated below of our purchase of the equipment from supplier
        is a
        condition precedent to effectiveness of this lease.

      

      04-03-05 IsoRay
        Medical, Inc.                              X
        /s/
        Michael Dunlop                       CFO                                  

      Date
        of
        Delivery Customer                       Signature:
        Michael Dunlop                                Title

      
        	
                GUARANTY

              

      

      As
        additional inducement for us to enter into the Agreement, the undersigned
        (“you”),
        jointly and severally, unconditionally personally guarantees that the customer
        will make all payments meet all obligations required under this Agreement
        and
        any supplements fully and promptly. You agree that we may make other arrangement
        including compromise or settlement with the customer and you waive all defenses
        and notice of those changes and will remain responsible for the payment and
        obligations of this Agreement. We do not have to notify you if the customer
        is
        in default. If the customer defaults, you will immediately pay in accordance
        with the default provision of the Agreement all sums due under the terms
        of the
        Agreement and will perform all the obligations of the Agreement. If it is
        necessary for us to proceed legally to enforce this guaranty, you expressly
        consent to the jurisdiction of the court set out in paragraph 13 and agree
        to
        pay all costs, including attorneys fees incurred in enforcement of this
        guaranty. It is not necessary for us to proceed first against the customer
        of
        the Equipment before enforcing this guaranty. By signing this guaranty, you
        authorize us to obtain credit bureau reports for credit and collection
        purposes

      

      X                                     
              Corp.
        Only          
          

      Signature                            
                        
Print
        Name                                        
                 Date

      from
        time
        to time signed by you and us (such property and any upgrade replacements
        and
        additions referred to as “Equipment”)
        for
        business purposes. You agree to all of the terms and conditions contained
        in
        this Agreement and any supplement, which together are a complete statement
        of
        our Agreement regarding the listed equipment (“Agreement”)
        and
        supersedes any purchase order or outstanding invoice. This Agreement may
        be
        modified only by written agreement and not by course of performance. This
        Agreement becomes valid upon execution by us and will begin on the rent
        commencement date shown and will continue from the first day of the following
        month for the number of consecutive months shown. You also agree to pay Lessor
        interim rent. Interim rent shall be in an amount equal to 1/30th of the monthly
        rental, multiplied by the number of days between the rent commencement date
        and
        the first payment due date. The term will be extended automatically for
        successive 12 month terms unless you send us written notice you do not want
        it
        renewed at lease thirty (30) days before the end of any term. If any provision
        of this Agreement is declared unenforceable in any jurisdiction, the other
        provisions herein shall remain in full force and effect in that jurisdiction
        and
        all others. THE BASE RENTAL PAYMENT SHALL BE ADJUSTED PROPORTIONATELY UPWARD
        OR
        DOWNWARD TO COMPLY WITH THE TAX LAWS OF THE STATE IN WHICH THE EQUIPMENT
        IS
        LOCATED. Equipment located in various states is subject to sales tax laws
        which
        require that tax be paid up front. You authorize use to advance tax and increase
        your monthly payment by an amount equal to the current tax percentage applied
        to
        the monthly rental shown above.

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      2.
        RENT: Rent
        will
        be payable in installments, each in the amount of the basic lease payment
        shown
        plus any applicable sales tax, use tax, plus 1/12th of the amount estimated
        by
        use to be personal property tax on the Equipment for each year of this
        Agreement. We will have the right to apply all sums, received from you, in
        any
        amounts due and owed to us under the terms of this Agreement. In the event
        this
        Agreement is not commenced, the security deposit will be retained by us to
        compensate us for our documentation, processing and other expenses. If for
        any
        reason, your check is returned for nonpayment, a $20.00 bad check charge
        will be
        assessed.

      

      3.
        COMPUTER SOFTWARE: Not
        withstanding any other terms and conditions of the Agreement, you agree that
        as
        to software only; a) We have not had, do not have, nor will have any title
        to
        such software, b) You have executed or will execute a separate software license
        agreement and we are not a party to and have no responsibilities whatsoever
        in
        regards to such license agreement, c) You have selected such software and
        as per
        Agreement paragraph 5, WE MAKE NO WARRANTIES OF MERCHANTABILITY, DATA ACCURACY,
        YEAR 2000 COMPLIANCE, SYSTEM INTEGRATION OR FITNESS FOR USE AND TAKE ABSOLUTELY
        NO RESPONSIBILITY FOR THE FUNCTION OR DEFECTIVE NATURE OF SUCH
        SOFTWARE.

      

      4.
        OWNERSHIP OF EQUIPMENT:
        We are
        the owner of the Equipment and have sole title to the Equipment (excluding
        software). You agree to keep the equipment free and clear of all items and
        claims.

      

      5.
        WARRANTY DISCLAIMER:
        WE MAKE
        NO WARRANTY, EXPRESS OR IMPLIED, THAT THE EQUIPMENT IS FIT FOR A PARTICULAR
        PURPOSE OR THAT THE EQUIPMENT IS MERCHANTABLE, YOU AGREE THAT YOU HAVE SELECTED
        THE SUPPLIER AND EACH ITEM OF EQUIPMENT BASED UPON YOUR OWN JUDGMENT AND
        DISCLAIM ANY RELIANCE UPON ANY STATEMENTS OR REPRESENTATIONS MADE BY US OR
        ANY
        SUPPLIER. WE DO NOT TAKE RESPONSIBILITY FOR THE INSTALLATION OR PERFORMANCE
        OF
        THE EQUIPMENT. THE SUPPLIER IS NOT AN AGENT OF OURS AND NOTHING THE SUPPLIER
        STATES CAN AFFECT YOUR OBLIGATION UNDER THE LEASE. WE HAVE NO RESPONSIBILITY
        FOR
        ANY MAINTENANCE OR SUPPOERT TO BE SUPPLIED BY SUPPLIER. YOU WILL CONTINUE
        TO
        MAKE ALL PAYMENTS UNDER THIS AGREEMENT REGARDLESS OF ANY CLAIM OR COMPLAINT
        OF
        NONPERFORMANCE AGAINST SUPPLIER.

      

      6.
        LOCATION OF EQUIPMENT:
        You will
        keep and use the Equipment only at your address shown above and you agree
        not to
        move it unless we agree to it. At the end of the Agreement’s
        term,
        you will return the Equipment to a location we specify at your expense, in
        retail resalable condition, full working order, and in complete
        repair.

      

      7.
        LOSS OR DAMAGE: You
        are
        responsible for the risk of loss or for any destruction of or damage to the
        Equipment. No such loss or damage relieves you from the payment obligations
        under this Agreement. You agree to promptly notify use in writing of any
        loss or
        damage and you will then pay to us the total of all unpaid lease payments
        for
        the full lease term plus the estimated fair market value of the Equipment
        at the
        end of the originally scheduled term, all discounted at six percent (6%)
        per
        year. Any proceeds of insurance will be paid to us and credited, at our option,
        against any loss or damage.

      

      8.
        COLLATERAL PROTECTION AND INSURANCE: You
        agree
        to keep the equipment fully insured against loss with us as loss payee in
        an
        amount not less than the replacement cost until this Agreement is terminated.
        You also agree to obtain a general public liability insurance policy from
        anyone
        who is acceptable to us and to include us as an insured on the policy. You
        agree
        to provide us certificates or other evidence of insurance acceptable to us,
        before this Agreement begins or, we will enroll you in our property damage
        coverage program and bill you a property damage surcharge as a result of
        our
        increased administrative costs and credit risk. As long as you are current
        at
        the time of the loss (excluding losses resulting from acts of god), the
        replacement value of the equipment will be applied against any loss or damage
        as
        per paragraph 7. You must be current to benefit from this program. NOTHING
        IN
        THIS PARAGRAPH WILL RELIEVE YOU OF YOUR RESPONSIBILITY FOR LIABILITY INSURANCE
        COVERAGE ON THIS EQUIPMENT. 

      

      9.
        INDEMNITY: We
        are
        not responsible for any loss or injuries caused by the installation or use
        of
        the Equipment. You agree to hold us harmless and reimburse us for loss and
        to
        defend us against any claim for losses or injury caused by the
        Equipment.

      

      10.
        TAXES AND FEES: You
        agree
        to pay when due all taxes (including personal property tax, fines and penalties)
        and fees relating to this Agreement or the Equipment. If we pay any of the
        above
        for you, you agree to reimburse us and to pay us a processing fee for each
        payment we make on your behalf. In addition, you also agree to pay us any
        filing
        fees prescribed by the Uniform Commercial Code or other law and reimburse
        us for
        all costs and expenses involved in documenting and servicing this transaction.
        You further agree to pay us up to $100.00 on the date the first lease payment
        is
        due to cover the expense of originating the Agreement.

      

      11.
        ASSIGNMENT: YOU
        HAVE
        NO RIGHT TO SELL, TRANSFER, ASSIGN or SUBLEASE THE EQUIPMENT OR THIS AGREEMENT.
        You understand that we, without prior notice, have the right to assign this
        Agreement to a financing source for financing purposes without your consent
        to
        such assignment. You understand that our assignee will have the same rights
        and
        benefits but they do not have to perform any of our obligations. You agree
        that
        the rights of assignee will not be subject to any claims, defenses, or setoffs
        that you may have against us.

      

      12.
        DEFAULT AND REMEDIES:
        If you
        do not pay any lease payment or other sum due to us or other party when due
        or
        if you break any of your promises in the Agreement or any other Agreement
        with
        us, you will be in default. If any part of a payment is late, you agree to
        pay a
        late charge of 15% of the payment which is late or if less, the maximum charge
        allowed by law,. If you are over in default, we may retain your security
        deposit
        and at our option, we can terminate or cancel this Agreement and require
        that
        your pay (1) the unpaid balance of this Agreement (discounted at 6%); (2)
        the
        amount of any purchase option and if none is specified, 20% of the original
        equipment cost which represents our anticipated residual value in the equipment;
        (3) and return the equipment to us to a location designated by us. We may
        recover interest on any unpaid balance at the rate of 8% per annum. We may
        also
        use any of the remedies available to us under Article 2A of the Uniform
        Commercial Code as enacted in the Suite of Minnesota or any other law. If
        we
        refer this Agreement to an attorney for collection, you agree to pay our
        reasonable attorney’s
        fees
        and actual court costs. If we have to take possession of the equipment, you
        agree to pay the cost of repossession. The net proceeds of the sale of any
        repossessed Equipment will be credited against what you owe us under this
        Agreement. YOU AGREE THAT WE WILL NOT BE RESPONSIBLE TO PAY YOU ANY
        CONSEQUENTIAL OR INCIDENTAL DAMAGES FOR ANY DEFAULT BY US UNDER THIS AGREEMENT.
        You agree that any delay or failure to enforce our rights under this Agreement
        does not prevent us from enforcing any rights at a later time. It is further
        agreed that your rights and remedies are governed exclusively by this Agreement
        and you waive lessee’s
        rights
        under Article 2A (508-522) of the UCC.

      

      13.
        UCC FILINGS: You
        grant
        us a security interest in the equipment if this agreement is deemed a secured
        transaction and you authorize us to record a UCC-1 financing statement or
        similar instrument, and appoint us your attorney-in-fact to execute and deliver
        such instrument, in order to show our interest in the Equipment. 

      

      14.
        SECURITY DEPOSIT: The
        security deposit is payable upon execution and non interest bearing and is
        to
        secure your performance under this Agreement. Any security deposit may be
        applied by us to satisfy any amount owed by you, in which event you will
        promptly restore the security deposit to its full amount as set forth above.
        If
        all conditions herein are fully complied with and provided you have not ever
        been in default of this Agreement per paragraph 12, the security deposit
        will be
        refunded to you after the return of the equipment in accordance with paragraph
        6.

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      15.
        LAW: This
        lease shall be deemed fully executed and performed in the Sate of Minnesota
        or
        in the home state of whoever holds the Lessor’s
        interest as it may be assigned from time to time per paragraph 11. This lease
        shall be governed by and construed in accordance with the laws of the State
        of
        Minnesota or the laws of the home state of Lessor’s
        assignee. You expressly and unconditionally consent to the jurisdiction and
        venue of any court in the State of Minnesota and waive the right to trial
        by
        jury for any claim or action arising out of or relating to this Agreement
        or the
        Equipment. Furthermore, you waive the defense of Forum Non
        Conveniens.

      

      16.
        LESSEE GUARANTY:
        You
        agree to submit the original master lease documents with the security deposit
        to
        Lessor or its assignee via overnight courier the same day of the facsimile
        transmission of the lease documents. Should we fail to receive those originals,
        you agree to be bound by the faxed copy of this agreement with appropriate
        signatures on the document. Lessee waives the right to challenge in court
        the
        authenticity of a faxed copy of this agreement and the faxed copy shall be
        considered the original and shall be the binding agreement for the purposes
        of
        any enforcement action under paragraph 12. 

      

      

      /s/
        Michael Dunlop                                                 
                                                    
                                                    
            CFO  

      Signature                         
                                                        
                                      Title

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      ADDENDUM
        TO LEASE ___________________

      

      BETWEEN

      IsoRay
        Medical, Inc.

      AS
        LESSEE

      AND

      Nationwide
        Funding, LLC

      DATED

      

      4/03/05

      

      The
        parties have entered into the above-referenced Lease for the lease of equipment
        more fully described in said Agreement. In recognition of the inaccuracy
        of the
        terms of such Agreement, the parties hereby wish to amend said Lease Agreement
        as set forth below:

      

      The
        Lease payments shall be changed from $1,331.71 (plus applicable taxes) to
        $2,475.38 (includes sales tax)

      

      The
        Security Deposit shall be changed from $2,663.42 to
        $4,950.76

      

      By
        signing this addendum, Lessee acknowledges the above changes to the Lease
        agreement and authorizes Lessor to make such changes.

      

      LESSEE:                    LESSOR:

      

      IsoRay
        Medical, Inc.     Nationwide
        Funding, LLC

      350
        Hills
        Street, Suite 106        5520
        Trabuco Road

      Richland,
        WA 99354     Irvine,
        CA 92620

      

      BY:
        /s/
        Michael Dunlop                 BY:
        /s/
        Evan Lang   

      NAME:
        Michael Dunlop        NAME:
        Even
        Lang   

      TITLE:
        CFO           
TITLE:
        President   

      DATE:
        4/03/05          DATE:
        04-14-05   

      

      

      “Customer
        waives the right to challenge in court the authenticity of a faxed copy of
        the
        Addendum and the faxed copy shall be considered the original and shall be
        the
        binding agreement for the purposes of any enforcement action”

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

      DELIVERY
        GUARANTEE

      

      Addendum
        to Lease # 490280
        dated
April
        3rd,
        2005
        between
Nationwide
        Funding, LLC
        as
        Lessor and, IsoRay
        Medical, Inc.
        as
        Lessee.

      

      Lessee
        understands and agrees that in the event the Lessee is not satisfied with
        the
        working condition of the equipment that Lessee shall only look to persons
        other
        than Lessor or its assigns such as the manufacturer, vendor, installer, or
        carrier, and shall not assert against Lessor or its assigns any claim or
        defense
        that Lessee may have with reference to the Equipment, its installation, or
        delivery. Lessee understands that despite the fact that certain items of
        Equipment to be leased have not been delivered or installed, this Addendum
        authorized Lessor to start the Lease and Leasee’s
        duty to
        make monthly payments will commence immediately. Further, Lessee authorizes
        Lessor to pay:

      

      Premier
        Technology, Inc.
        is the
        vendor for the equipment and the Lessee understands that payment shall begin
        on
        the same date that the Lessee executes this agreement and shall be continuous
        thereafter per the terms of the Lease.

      

      $
        37,500.00 Will
        be
        paid to Premier
        Technology, Inc
        (Vendor)
        upon execution of this agreement.

      

      $
        37,500.00
        Will be
        paid to Premier
        Technology, Inc
        (Vendor)
        upon final verification by Lessee after completion of delivery and
        installation.

      

      
        	
                 Nationwide
                  Funding, LLC

              	 	
                IsoRay
                  Medical, Inc.

              
	
                Lessor

              	 	
                Lessee

              
	 	 	 
	
                /s/
                  Evan Lang

              	 	
                /s/
                  Michael Dunlop

              
	
                Signature

              	 	
                Signature

              
	
                 

              	 	 
	
                 Evan
                  Lang, President

              	 	
                Michael
                  Dunlop, CFO

              
	
                Name
                  & Title

              	 	
                Name
                  & Title

              
	 	 	 
	
                04-14-05

              	 	
                4/12/05

              
	
                Date

              	 	
                Date

              

      

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      SCHEDULE
        “A”

      

      Vendor: Premier
        Technology, Inc.

      170
        East Siphon Road

      Pocatello,
        ID 83202

      

      

      
        	
                Item

              	
                Quantity

              	
                Description

              
	
                1

              	
                1

              	
                SP-012
                  Glovebox Large Shielding Window Option (3 each 16”
                  x 24”)

              

      

      

      

      

      Initials
        __________                                                                                                    Page
        1 of
        2

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      This
        Schedule is hereby verified as correct by the undersigned Lessee and constitutes
        all the equipment covered by the referenced lease.

      

      LESSEE:
        IsoRay
        Medical, Inc.

      

      
        	
                /s/
                  Michael Dunlop

              	 	
                CFO

              
	
                By:
                  Michael Dunlop

              	 	
                Title:
                  

              
	 	 	 
	
                Date:4/6/05

              	 	 

      

      

      Exhibit
        attached to and made part of Lease NO. 490580
        dated
        the
14
        day
        of
April
        2005
        between
        Lessee and Nationwide Funding, LLC.

      

      
        	
                /s/
                  Evan Lang

              	 	
                President

              
	
                By:
                  Evan Lang

              	 	
                Title:

              
	 	 	 

      

      

      Initials
        __________                                                                                                    Page
        2 of
        2

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      DISCLAIMER
        OF OWNERSHIP

      

      The
        undersigned IsoRay
        Medical, Inc. (“Lessee”)
        proposes to be the Lessee of certain equipment from Nationwide Funding, LLC
        (the
“Lessor”)
        pursuant to an Equipment Lease between Lessor and Lessee bearing Lease #
        ____________ signed by the Lessee on 4/6/05
        (the
“Lease”).
        The
        equipment covered by the Lease is hereinafter referred to as the “Equipment”.

      

      The
        Equipment will be purchased by Lessor from Premier
        Technology, Inc
        (the
“Vendor”).
        Lessee
        has made a deposit or down payment to the Vendor as a part of the original
        purchase order, and it is contemplated that, upon Lessor’s
        receipt
        of all necessary documentation and satisfaction of all conditions to Lessor
        entering into the Lease, Lessor shall pay the Vendor the remaining balance
        of
        the purchase price and receive a bill of sale from the Vendor covering a
        100%
        interest in the Equipment. 

      

      The
        Lessee, being satisfied that its payments under the lease are based only
        upon
        Lessor’s
        payment
        to the Vendor and not Lessee’s
        down
        payment, hereby consents to the Vendor transferring the entire ownership
        in the
        Equipment to Lessor, and effective on the actual transfer of the Equipment
        to
        lessor, disclaims any ownership interest or rights in the Equipment except
        those
        the Lessee has by virtue of being the Lessee under the Lease.

      

      Lessee:
        IsoRay
        Medical, Inc.

      

      
        	
                By:
                  /s/
                  Michael Dunlop

              	 	
                Date:
                  4/6/05

              
	
                 Michael
                  Dunlop, CFO

              	 	 

      

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

      LESSEE
        ACKNOWLEDGEMENT

      

      Lease
        Agreement #
        490280
        made
        this 3rd
        day of
April,
        2005,
        between
Nationwide
        Funding, LLC
        (“Lessor”)
        and
        IsoRay Medical, Inc. (Lessee) for SP-012
        Glovebox Large Shielding Window Option (3 each 16”
        x
        24”),
        located
        at 350
        Hills Street, Richland, WA 99354.

      

      Lessee
        acknowledges that Lessor holds all right, title and interest in all equipment
        listed on the above referenced lease. U.S. Bancorp Manifest Funding Services
        will be assigned the right to receive payments only and a security interest
        in
        the equipment during the assignment period of the lease.

      

      
        	
                Lessee
                  Name: Lessor Name:

              	 	 
	
                IsoRay
                  Medical, Inc.

              	 	
                Nationwide
                  Funding, LLC

              
	 	 	 
	 	 	 
	
                By:
                  /s/
                  Michael Dunlop

              	 	
                By:
                  /s/
                  Evan Lang

              
	 	 	 
	
                Title:
                  CFO

              	 	
                Title:
                  President

              
	 	 	 
	
                Date:
                  4/3/05

              	 	
                Date:
                  4/14/05Unassociated Document

     

    

      LEASE
        AGREEMENT, REV. 2

      

      

      THIS
        REVISION 2 TO THE LEASE AGREEMENT DATED FEBRUARY 9, 2005 and amended by Revision
        1 dated May 5, 2005 and made by subsidiaries of the Parties now delineated
        as
        signatories,
        is made
        and entered into this 1st day of November, 2005, by and between Nuvotec
USA,
        Inc.
        (hereinafter “LESSOR”),
        a
        Washington corporation with its corporate offices located at 723 The Parkway,
        Richland, Washington 99352, and IsoRay, Inc. (hereinafter “LESSEE”)
        a
        Delaware corporation with its corporate offices located at 350 Hills Street,
        Suite 106, Richland, Washington 99354, (collectively, the “Parties”
        and each
        a “Party”).

      

      WHEREAS,
        LESSOR
        currently owns the premises known as 2025 Battelle Boulevard, Richland,
        Washington; and

      

      WHEREAS,
        LESSEE
        is interested in leasing a portion of said premises; and

      

      WHEREAS,
        both
        Parties have an interest in transferring this Lease to their respective parent
        companies and amending the rent and assignment provisions;

      

      NOW,
        THEREFORE,
        in
        consideration of the mutual promises hereinafter contained, the parties hereto
        agree as follows:

      

      PREMISES.
        LESSOR
        does hereby lease to LESSEE the Waste Storage Bay 3 of the Mixed Waste Building
        on the premises commonly known as 2025 Battelle Boulevard, Richland, Washington
        99354. Further, LESSEE shall have access to the rest room facilities and
        lunchroom located near the Premises, as well as other common areas as
        appropriate and necessary.

      

      TERM.
        The term
        of this Lease shall be for one (1) year, with a one (1) year option, commencing
        the first day of March 2005 or upon regulatory licensing approval -
        whichever occurs later. By mutual agreement of the parties, this Lease may
        be
        extended on a month-to-month basis.

      

      RENT.
        LESSEE
        covenants and agrees to pay LESSOR at the end of the initial term at 723
        The
        Parkway, Richland, Washington 99352 or to such other party or at such other
        place as LESSOR may hereinafter designate. The annual rental amount shall
        be
        paid in IsoRay, Inc. common stock and shall be in the amount of Twenty-four
        Thousand Seven (24,007) shares of common stock. In the event this Lease is
        terminated before the end of the initial year, the stock paid to LESSOR shall
        be
        pro-rated accordingly in relation to the number of days the Lease was effective.
        In the event that LESSEE elects to exercise the option for an additional
        year,
        the annual rental amount will be evaluated at that time and mutually agreed
        to
        by the Parties. 

      

      ACCEPTANCE
        OF PREMISES.
        LESSEE
        accepts the Premises “as-is”.
        Responsibility for the cost of facility modifications necessary to accommodate
        LESSEE shall be mutually agreed to between the parties prior to incurring
        the
        cost. In those cases wherein LESSOR assumes the responsibility for the cost,
        LESSEE shall reimburse LESSOR with IsoRay, Inc. common stock based on a value
        of
        the current market value of the LESSEE’s
        common
        stock, measured by the average daily closing price of the stock in the calendar
        month in which the LESSOR performed the activities. 

      

      PERMITTING.
        LESSEE
        shall be responsible for the permitting activities required specific to their
        operations on the leased premises. LESSOR will facilitate said permitting
        efforts.

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      RELATIONSHIP
        OF THE PARTIES.
        Nothing
        contained in this Lease shall, by express grant, implication, estoppel, or
        otherwise, create in either party any right, title, interest, or license
        in or
        to the inventions, patents, technical data, computer software, or software
        documentation of the other party. This Agreement is not intended by the parties
        to constitute or create a joint venture, pooling arrangement, partnership,
        or
        formal business organization of any kind, other than a landlord-tenant
        relationship, and the rights and obligations of the parties shall be only
        those
        expressly set forth herein. Neither party shall have authority to bind the
        other
        except to the extent authorized herein. Nothing in this Agreement shall be
        construed as providing for the sharing of profits or losses arising out of
        the
        efforts of either or both parties. 

      

      OPERATING
        COSTS AND EXPENSES.
        The Base
        Rent provided herein includes real estate taxes, building insurance, and
        building maintenance all of which shall be paid by the LESSOR, without any
        additional charge to the LESSEE. LESSEE is responsible for providing their
        own
        office and operating equipment and administrative personnel.

      

      CONTAMINATION.
        Notwithstanding any other provision of this Lease, in the event that the
        activities of LESSEE contaminate the leased premises and/or any of the premises
        commonly known as 2025 Battelle Boulevard, Richland, Washington, LESSEE shall
        be
        solely responsible for the cost of restoring the contaminated areas to the
        same
        condition as existed at the inception of this Lease. LESSEE agrees to clean
        up
        any known contaminates at the time the contamination occurs and to immediately
        notify LESSOR of the situation. The premises have been baseline surveyed
        by
        LESSOR for pre-lease contamination (see attached baseline survey). The premises
        will be restored to a condition that is not greater than the attached baseline
        survey. 

      

      TECHNICAL
        SUPPORT.
        Related
        to this Lease, LESSOR will provide certain staff as technical support to
        the
        LESSEE. Time for said staff will be billed in accordance with the rates as
        delineated in Exhibit A.

      

      UTILITIES.
        LESSOR
        shall pay all charges for water, sewage disposal, and gas or other fuel utilized
        in connection with normal and customary general occupancy of the Premises
        without any additional charge to LESSEE. LESSEE shall pay all charges for
        telephone, internet, LAN, and other charges specific to the use of the Premises
        by LESSEE. Additionally, LESSEE shall be responsible for establishing their
        own
        mail service -
        both
        pick-up and drop-off -
        as this
        function will not be provided by the LESSOR. Further, LESSEE shall be
        responsible for all electricity charges consumed by the LESSEE’s
        operations. LESSOR will establish a separate meter for LESSEE’s
        operations in order to track the LESSEE’s
        utility
        costs.

      

      JANITORIAL
        SERVICES. LESSEE
        shall be responsible for and provide janitorial services and supplies to
        support
        its occupancy.

      

      MAINTENANCE.
        The
        LESSEE will at all times keep the Premises neat, clean, and sanitary. LESSEE
        will perform any duty required to place the Premises in as near a condition
        as
        at the time of occupancy, normal wear and tear excepted. LESSEE is responsible
        for surrendering to LESSOR all keys fitting all locks located on the Premises
        that are in the possession of LESSOR.

      

      TAXES.
        The
        Parties acknowledge that LESSOR shall pay and hold LESSEE harmless for all
        state, federal, and local taxes and assessments against the Premises or
        leasehold improvements thereto.

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      INSURANCE.
        LESSEE
        shall, at its cost and expense, procure and maintain during the term of this
        Lease the following insurance coverage:

      (1)
        Comprehensive general public liability insurance insuring against the risks
        of
        bodily injury, property damage, and personal injury liability occurring on
        the
        Premises of arising out of LESSEE’s
        negligent use or occupancy of the Premises, with a combined single limit
        of
        liability of at least $1,000,000. 

      

      (2)
        Fire
        and extended coverage insurance insuring LESSEE’s
        personal property in or on the Premises for one hundred percent (100%) of
        its
        full insurable and replacement costs, without deduction for
        depreciation.

      

      
        	
                (a)

              	
                LESSEE’s
                  policy of liability insurance shall list LESSOR as additional insured
                  and
                  shall also contain an endorsement that although LESSOR is listed
                  as
                  additional insured, LESSOR shall not be entitled to recover under
                  the
                  policy for any loss or damage occasioned to it or its agents or
                  employees
                  except by reason of LESSEE’s
                  negligence. Any insurance policy LESSEE is required to procure
                  and
                  maintain under this Lease shall be issued by a responsible insurance
                  company or companies licensed to do business in the State of Washington.
                  Further, each such policy shall provide that it may not be canceled,
                  terminated, or changed except after ten (10) days prior written
                  notice to
                  LESSOR.

              
	 	 
	
                (b)

              	
                LESSOR
                  and LESSEE each waives any claim it might have against the other
                  for
                  personal injury or death or for damage to or theft, destruction,
                  loss, or
                  loss of use of any property, to the extent the same is insured
                  against
                  under any insurance policy that covers the Building, LESSOR’s
                  or LESSEE’s
                  fixtures, personal property, leasehold improvements, or business,
                  or is
                  required to be insured against under the terms hereof, and each
                  party
                  shall cause its insurance carrier to endorse all applicable policies
                  waiving the carrier’s
                  rights of recovery under subrogation or otherwise against the other
                  party.

              

      

      

      Caveat:
        In
        the
        event that it is determined that to be in compliance with State regulatory
        requirements additional insurance coverage is necessary, the parties agree
        to
        work together to obtain such.

      

      SUCCESSORS
        IN INTEREST.
        This
        Lease shall be binding upon and inure to the benefit of the heirs, successors,
        assigns, and transferees of the parties hereto. This Lease shall not be
        assignable in whole or in part without the prior written approval of the
        LESSOR.
        The Parties acknowledge that LESSEE has obtained a loan from the Hanford
        Economic Area Investment Fund Committee (hereinafter “HEAFIC”)
        and as
        such LESSOR hereby acknowledges that it will, on the basis the
        entity/individuals chosen by HEAFIC to continue this Lease are acceptable
        to
        LESSOR, said acceptance to not be unreasonably withheld, approve of an
        assignment of this Lease by LESSEE to HEAFIC pursuant to the terms of the
        loan
        between LESSEE and HEAFIC.

      

      ACCESS
        TO PREMISES.
        LESSEE
        shall allow LESSOR access at all reasonable times to the leased Premises
        for the
        purpose of inspection and repairs.

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      DEFAULT
        BY LESSOR.
        Should
        LESSOR fail to perform any of the terms and conditions required herein, LESSEE
        may declare LESSOR to be in default upon thirty (30) days written notice.
        Upon
        default, LESSEE may terminate this Lease (without liability to pay any amount
        for such termination) and/or pursue any and all remedies available to it
        under
        Washington law. Provided, however, that if such failure to observe or perform
        is
        remediable but is of such nature that it cannot be remedied within such thirty
        (30) day period, then for such longer period as may be reasonably required,
        so
        long as LESSOR promptly commences and diligently pursues such remedy to
        completion.

      

      DEFAULT
        BY LESSEE.
        Should
        LESSEE fail to perform any of the terms and conditions required herein, LESSOR
        may declare LESSEE to be in default upon thirty (30) days written notice.
        Upon
        default, LESSOR may terminate this Lease (without liability to pay any amount
        for such termination) and/or pursue any and all remedies available to it
        under
        Washington law. Provided, however, that if such failure to observe or perform
        is
        remediable but is of such nature that it cannot be remedied within such thirty
        (30) day period, then for such longer period as may be reasonably required,
        so
        long as LESSEE promptly commences and diligently pursues such remedy to
        completion. The occurrence of any one or more of the following events shall
        constitute a material default in breach of this Lease by LESSEE: 1) failure
        by
        LESSEE to make any payment of rent or other sum required herein as and when
        due;
        and/or, 2) failure by LESSEE to materially observe or perform any of the
        covenants, conditions, or provisions of this Lease.

      

      ALTERATIONS/IMPROVEMENTS.
        LESSEE
        shall not make any alterations or improvements in, on, or about the Premises
        without the prior written consent of LESSOR, which shall not be unreasonably
        withheld. Upon the expiration or termination of this Lease, the LESSEE
        acknowledges that any alterations and/or improvements to the property which
        have
        been installed by the LESSEE and approved by the LESSOR may or may not be
        left
        with the Premises. LESSOR may require the LESSEE to remove any alterations
        and/or improvements which were made without the LESSOR’s
        approval and restore the Premises to their original condition.

      

      THE
        LESSEE process and process support equipment shall not be considered Alterations
        or improvements and shall be removed by the LESSEE upon Lease termination.
        This
        equipment includes, but is not limited to:

      

      
        	
                §

              	
                hot
                  cells;

              
	 	 
	
                §

              	
                glove
                  boxes;

              
	 	 
	
                §

              	
                analytical
                  equipment;

              
	 	 
	
                §

              	
                radiation
                  monitoring equipment;

              
	 	 
	
                §

              	
                computers
                  and peripheral equipment; and,

              
	 	 
	
                §

              	
                ancillary
                  and support equipment related to the
                  above.

              

      

      

      Alterations
        and improvements are HVAC, electrical modifications (including lighting),
        walls,
        cabinetry, exterior concrete pad, fencing/gates, and signage. These items
        shall
        be removed as directed by LESSOR at the end of the Lease.

      

      SIGNAGE.
        LESSOR
        hereby consents to LESSEE posting one sign on the exterior of the main entrance
        to the building (fenceline) and one sign at or near the roadway at the main
        road
        entrance as approved per the City of Richland. All signs shall be subject
        to the
        prior review and approval of the LESSOR.

      

      PARKING.
        LESSOR
        shall provide spaces for automobile parking.

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      COMMON
        AREAS.
        Common
        areas are defined to include the following interior and exterior areas:
        hallways, restrooms, emergency exits, parking areas and the entrances and
        exits
        thereof, driveways, sidewalks, lunch rooms, rest rooms/locker rooms on east
        side
        of main building (Building 17), and other areas and facilities provided for
        general use.

      

      LESSOR
        shall arrange for all required maintenance of both interior and exterior
        common
        areas including gardening and landscaping, janitorial, repair of common area
        facilities, line painting, lighting lamp replacement, sanitary control, removal
        of snow, trash rubbish and other refuse, policing, traffic and other
        regulations.

      

      HAZARDOUS
        MATERIALS.
        LESSEE
        shall not take or store upon the Premises any pollutants, contaminants,
        hazardous, or toxic materials as defined by the law of the State of Washington
        or by federal law, except in strict compliance with all applicable rules,
        regulations, ordinances, and statutes.

      

      NOTICES.
        All
        notices, certificates, acknowledgements, and other reports hereunder shall
        be in
        writing and shall be deemed properly delivered when duly mailed by registered
        letter to the other party at its addresses as follows, or to such other address
        as either party may, by written notice, designate to the other.

      

      
        	 	
                Novotec
                  USA,
                  Inc.

              	
                IsoRay,
                  Inc.

              
	 	
                723
                  The Parkway

              	
                350
                  Hills Street, Suite 106

              
	 	
                Attn:
                  Sandra I. Muller

              	
                Attn:
                  Roger E. Girard

              
	 	
                Phone:
                  509/943-5319

              	
                Phone:
                  509/375-1202

              
	 	
                Fax:
                  509/943-5528

              	
                Fax:
                  509/375-3473

              

      

      

      CHANGES
        TO TERMS.
        This
        Lease shall not be amended, modified, or extended, nor shall any waiver of
        any
        right hereunder be effective unless set forth in a document executed by duly
        authorized representatives of both the parties. The waiver of any breach
        of any
        term, covenant, or condition herein contained shall not be deemed to be a
        waiver
        of such term, covenant, or condition for any subsequent breach of the
        same.

      

      INTEGRATION.
        This
        Lease contains all of the agreements, representations, and understandings
        of the
        parties hereto and supersedes and replaces any and all previous understandings,
        commitments, or agreements, oral or written, related to this Lease Agreement
        set
        forth herein.

      

      SEVERABILITY.
        If any
        part, term, or provision of this Lease shall be held void, illegal,
        unenforceable or in conflict with any law of a federal, state, or local
        government having jurisdiction over this Lease, the validity of the remaining
        portions of provisions shall not be affected thereby.

      

      JURISDICTION.
        This
        Lease shall be enforced and interpreted under the laws of the State of
        Washington. 

      

      PREVAILING
        PARTY.
        In the
        event that either party hereto brings an action at law or in equity for the
        enforcement of any provision of this Lease, the prevailing party shall be
        entitled to recover all costs and expenses including reasonable
        attorney’s
        fees
        incurred both at trial and on appeal. 

      

      IN
        WITNESS WHEREOF,
        the
        parties hereto have executed this Lease Revision No. 1 on the date first
        stated
        above.

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      
        	
                NUVOTEC,
                  USA,
                  INC.

              	
                ISORAY,
                  INC.

              
	 	 
	
                By:
                  /s/
                  Robert L. Ferguson

              	
                By:
                  Roger E. Girard

              
	 	 
	
                
                  Name:
                    Robert L. Ferguson

                

              	
                Name:
                  Roger E. Girard

              
	
                
                  Title:
                    Chairman & Chief Executive

                

              	
                Title:
                  Chief Executive Officer Officer

              

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      EXHIBIT
        A

      

      Technical
        support will be provided at the following hourly billing rates (rates are
        listed
        at the maximum charge out rate for each category):

      

      Mechanics

      $51.61

      

      Instrument
        Technicians

      $51.61

      

      Electricians

      $51.61

      

      Health
        Physics Technicians

      $53.29

      

      Regulatory
        Compliance Manager

      $63.52

      

      EHS&Q
        Manager

      $83.02

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